The United Nations Environment Assembly, 

Having considered the report of the Executive Director entitled “Information on implementation of decision 4/3 on the management of trust funds and earmarked contributions,”1 

Recalling its decision 3/3, in which it requested the Executive Director, in consultation with the relevant parties and/or donors, as appropriate and in accordance with the terms of the respective agreement/fund, to decide on reassigning the balances in inactive trust funds when the activities for which they were established had ended, with a view to supporting the implementation of appropriate subprogrammes of the agreed programme of work, 

1. Notes with appreciation the progress made in the implementation of decision 3/3 through the closure of the inactive trust funds and the reassignment of the balances to the relevant activities; 

2. Notes that, in line with the Financial Regulations and Rules of the United Nations, agreements for which the United Nations Environment Programme carries out the functions of the secretariat must be based on the principle of cost recovery when it comes to administrative matters;