A/HRC/4/94 page 5 10. Country engagement entailed a process of country assessments and the development of strategies that aimed to harness knowledge and expertise from all parts of the Office. This process offered a framework of a holistic and sustained engagement at the country level. The Board discussed the nature of the country assessments and their possible relationship with the upcoming process of the universal periodic review. The Board noted that part of the country assessment originating from the work of treaty bodies and special procedures would remain public information, while part of the assessment should be for internal purposes. In that regard, the Board was pleased to learn that OHCHR had been working on compiling all country-related information and making it available on the Office’s website. 11. With regard to the universal periodic review, the formalities were being discussed in intergovernmental settings in the context of the Human Rights Council. The Board discussed the challenges as well as the opportunities of such a universal review system, which was seen as a major development in the United Nations human rights machinery. The Board noted that the High Commissioner had set clear strategies, including through country engagement, in the Plan of Action in response to the challenge of filling implementation gaps. The Board was informed that there had been discussions regarding the possible setting up of an ad hoc fund for universal periodic review follow-up. 12. OHCHR country engagement concerned all countries and employed a range of tools at its disposal on the basis of a strategic assessment. The Board pointed out the importance of the early warning function of the country assessment tool in order to avoid engagement only in trouble spots. The Board also noted the need to ensure that the Office had adequate capacity to play a meaningful role vis-à-vis the Security Council. 13. Being present in different regions and countries, with staff having the requisite expertise, local knowledge and language, had been recognized as the preferred means of undertaking human rights work for the United Nations. Current OHCHR field deployment took the form of regional offices, country offices, support for peace missions, and the assignment of human rights advisers to United Nations country teams. When it came to the technical cooperation programme, experience had shown that OHCHR projects were most effective when the Office is present in the country, and with sufficient staff, and where the project formed part of a strategy of long-term engagement agreed upon by the Government and involving a full programme of OHCHR work. The Board reiterated the vision that technical cooperation projects must form an integral part of an overall country engagement strategy. V. THE FINANCIAL SITUATION OF THE VOLUNTARY FUND AND ITS FUNCTIONING IN THE OVERALL FUNDING SYSTEM 14. As of 26 December 2006, the financial situation of the Voluntary Fund was as follows: total income of some US$ 13.7 million and some US$ 8 million in expenditure and commitment. The estimated fund balance was some US$ 5.7 million. More detailed information on income and expenditure is to be found in the annex. 15. At its twenty-fifth session, the Board discussed the issue of “carry over” and the problem of cash flow. Early in the year, it was not always possible to have adequate funds to cover contracts and activities, owing to reasons relating to earmarking and unpaid pledges. An