The terms of reference contained in Annex 4 to Council-03 Resolution 1210 are amended as follows:

1. to examine the provisions of the Financial Regulations and Financial Rules, with a view towards ensuring conformity and consistency with the basic instruments of the Union, decisions of the Plenipotentiary Conference and the Council, as well as the evolving needs of the ITU;
    
2. to ensure that, with the development of results-based budgeting and continuing improvements to the financial management system in ITU, consequential amendments to the financial instruments are undertaken on a continuous basis, such as classifying appropriations by programme and activity, with the corresponding reference to the Strategic Plan, instead of by category of expenditure;
    
3. to ensure that the flexibility arrangements provided for in the Financial Regulations and Financial Rules, including deferred activities to be carried out for the following biennium, are consistent with those of other United Nations organizations;
    
4. to undertake a review of the recommendations of the External Auditor, as presented annually to the Council, on an ongoing basis, taking into account Resolution 94 (Rev. Antalya, 2006) concerning the auditing of the accounts of the Union, and the terms of reference of the External audit outlined in Article 28 and Annex 1 of the Financial Regulations;
    
5. to ensure that the Financial Regulations include provisions for internal control in line with those of other United Nations organizations;
    
6. to identify other consequential changes to the Financial Regulations as well as the Financial Rules as a result of the actions undertaken above;
    
7. to liaise, as appropriate, with the Management and Budget Group of the Council.