The Twentieth Meeting of the Executive Committee decided:
(a) that where the Secretariat, in reviewing a project that did not claim all the eligible operating costs in order to keep its cost-effectiveness within the established threshold, determined that part of the capital costs were ineligible, the value of those ineligible costs could be compensated by an increase in the eligible operating costs provided that:
(i) the original eligible operating costs were claimed for less than the allowable period;
(ii) the compensation did not result in the allowable period being exceeded; and
(iii) the overall cost of the project remained within the threshold established for the sector or subsector;
(b) transfers from operating costs to capital costs during implementation of such a project could only occur to fund cost overruns for eligible capital equipment items that had been included in the project approval, in which case, a report would have to be submitted to the Executive Committee providing an explanation and justification for the transfer.
(UNEP/OzL.Pro/ExCom/20/72, Decision 20/6, para. 17).