A/HRC/7/74 page 8 2. The universal periodic review 16. In 2007 the Board also looked at the challenges/implications for OHCHR stemming from the 2005 World Summit and the subsequent reform process initiated by the High-level Panel followed by inter alia the report of the Secretary-General entitled “In Larger Freedom”, which together marked a paradigm shift for human rights, reaffirming human rights as one of the three pillars of the United Nations. In this regard, the Board has made an effort to keep abreast of the process of institution-building within the framework of the Human Rights Council, particularly regarding the development of the universal periodic review (UPR) process, and to consider how the new mechanisms could possibly benefit, influence and/or provide challenges for OHCHR work on technical cooperation. 17. As such, the Board noted the new developments as per Human Rights Council resolutions 5/1 and 6/17 and the request for the establishment of a new additional trust fund to help countries implement recommendations emanating from the UPR process, namely the Voluntary Fund for Financial and Technical Assistance. It should be recalled that in the Board’s briefing to Member States in May 2007 it was discussed whether the VFTC should be used for the UPR follow-up. Since then, the Human Rights Council has decided to establish a new trust fund for the UPR. The Board will follow with interest technical cooperation activities that will stem from the UPR process, with a view to ensuring efficiency and coherence with the Technical Cooperation Programme as a whole. V. THE FINANCIAL SITUATION OF THE VOLUNTARY FUND FOR TECHNICAL COOPERATION IN THE FIELD OF HUMAN RIGHTS 18. The Finance and Budget Section and the Donor and External Relations Sections of OHCHR provide the Board of Trustees with an update on the financial situation of the VFTC at each session. The Board noted that as of 1 January 2007 the VFTC would be used for technical cooperation activities in country offices, for human rights advisers and for human rights components of peace missions. 19. As of 31 October 2007, the financial situation of the VFTC was as follows: total income of US$ 5,439,315 and US$ 8,484,642 of expenditure and commitment. The estimated fund balance is US$ 7,416,712, considering the 2006 carry over of US$ 10,462,712. More detailed information on income and expenditure is to be found in the annex. 20. The Board acknowledges that earmarked contributions are not ideal for OHCHR as such, nor from a financial management point of view. However, the reality is that some Member States prefer to earmark their contributions and to channel their funds through the VFTC within the oversight of an independent Board of Trustees. During the last session the High Commissioner reiterated the important role the VFTC plays as a funding vehicle for implementation of technical cooperation activities.