Article VII: Finance and Administration

1. The financial regulations, rules and procedures of the Bank shall apply to the financial operations of the Institute, subject to such amendments thereto and such special rules and procedures as may be approved by the President of the Bank.
2. The budget of the Institute shall be independent from that of the Bank and the Bank shall not be liable for the obligations of the Institute, except as the Bank, with the approval of the Board of Directors, may otherwise agree.
3. The expenses of the Institute shall be met from the "Special Fund for the Asian Development Bank Institute" for which the Bank shall serve as Administrator (hereinafter referred to as "the Institute Special Fund"). The Institute Special Fund shall be used to finance the operations of the Institute. Goods and services, and the services of experts, shall be procured or engaged by the Institute only from member countries of the Bank in accordance with procedures and practices consistent with the Charter.
4. 1. Notwithstanding the provisions of paragraphs 3 and 4(b) of this Article, the Institute may accept, with the approval of the Board of Directors of the Bank, the administration of trust funds which are consistent with the functions set out in Article III or advance the objectives of the Institute. Such trust funds accepted by the Institute may be used in any manner and on any terms and conditions not inconsistent with the purposes and policies of the Institute or the Bank and with the agreement relating to such trust funds between the Institute and their respective contributors of such trust funds concerned.
   2. Voluntary contributions from any member country of the Bank and voluntary contributions, donations and grants from intergovernmental organizations, non-government organizations and foundations, with the approval of the Board of Directors of the Bank, shall be credited to the Institute Special Fund. Proceeds of contract awards from any such member countries, organizations and foundations, with the approval of the President of the Bank, shall be credited to the Institute Special Fund. No such contribution, grant or contract award for a specific purpose may be so accepted if the purpose is inconsistent with the purposes and policies of the Institute or the Bank.
5. The Institute Special Fund shall be held by the Bank and administered solely for the purposes of the Institute.
6. The Bank may invest and reinvest the funds of the Institute Special Fund pending their disbursement, and may retain for its own account the income from such investment or, reinvestment in order to assist in the defrayment of direct and identifiable costs incurred by the Bank in the performance of its functions as Administrator of the Institute Special Fund.
7. The Bank shall provide the Institute with such administrative and financial services as may be agreed from time to time. Subject to such services as may be so provided to the Institute by the Bank, the Institute shall be responsible for its administration, including preparation of its own accounts and financial statements.
8. The Institute shall reimburse the Bank for the cost of any financial and administrative services provided by the Bank to the Institute.
9. The accounts of the Institute shall be subject to annual audit to be carried out by the Bank's external auditors.