RESTRICTED  
  
WT/BFA/W/610  
 
24 October 2022 
(22-7939) Page: 1/17 
Committee on Budget, Finance and Administration    
 
COMPLETE  SET OF REVIS ED FINANCIAL REGULATIONS  
OF THE WORLD TRADE ORGANIZATION  
1.1.  Since 2019, the Committee  on Budget , Finance and Administration (the Committee)  has been 
reviewing the WTO Financial Regulations , which are set out in document WT/L/156/Rev .3.  
1.2.  The Committee agreed to specific revisions to Fina ncial Re gulations 4, 17, 19, 23, 26, 27, 29, 
37, 38 and 42 .  
1.3.  The comp lete set of t he WTO Financial Regulations , including the revised versions of the 
Financial Regu lations stated in  paragraph 1.2 above , is annexed to this document.  
1.4.  The proposed  recomme ndation to the Gen eral Council  reads as follows:  
The Committee recommend s that the General Council  approve  the Revised WTO 
Finan cial Regulations annexed to this do cument . 
1.5.  Once the rev ised WTO Financial Regulati ons are approved by the General Council, the official 
Revised WTO Fin ancial Regulations will bear the symbol WT/L/156 /Rev. 4. 
 WT/BFA/W/610  
 
- 2 - 
 
  FINANCI AL REGULATIONS OF THE WOR LD TRADE ORGANIZATION  
Revision  
CONTENTS  
 
CHAPTER I. AUTHORITY AND APPLICABILITY ................................ ................................ .. 3 
CHAPTER II. PREPARATION OF THE BUDGET  ................................ ................................ ... 3 
CHAPTER III. ADOPTION OF THE BUDGET  ................................ ................................ ....... 4 
CHAPTER IV. CONTR IBUTIONS BY MEMBERS AND OBSERVERS  ................................ ........  4 
CHAPTER V. MISCELLANEOUS INCOME  ................................ ................................ ............  6 
CHAPTER VI. VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS  ...............................  6 
CHAPTER VII. USE OF THE FUNDS  ................................ ................................ ....................  6 
CHAPTER VIII. THE SURP LUS ACCOUNT  ................................ ................................ ...........  7 
CHAPTER IX. THE WORKING CAPITAL FUND  ................................ ................................ .... 8 
CHAPTER X. TREASURY MANAGEMENT  ................................ ................................ .............  9 
CHAPTER XI. FINANCIAL REPORTING  ................................ ................................ ..............  9 
CHAPTER XII. INTERNAL CONTROL  ................................ ................................ ................  10 
CHAPTER XIII. EXTERNAL AUDIT  ................................ ................................ ...................  11 
ANNEX A  WTO EARLY PAYMENT ENCOURAG EMENT SCHEME  ................................ .........  13 
ANNEX B  ADMINISTRATIVE MEASURES FOR MEMBERS AND OBSERVERS IN 
ARREARS  ................................ ................................ ................................ ........................  14 
ANNEX C   WTO SECRETARIAT'S GUIDELINES FOR THE RECEIPT AND 
NOTIFICATION OF VOLUNTARY FUND CONTRIBUTIONS FROM MEMBERS AND 
OBSERVERS  ................................ ................................ ................................ ....................  16 
ANNEX D  VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS FROM NON -
GOVERNMENTAL DONORS  ................................ ................................ ..............................  17 
 WT/BFA/W/610  
 
- 3 - 
 
  CHAPTER I. AUTH ORITY AND APPLICABILITY  
Regulatio n 1 
 
These Regulations shall govern  the financial administrat ion of the World Trade Organization 
(WTO).  
 
Regulation 2  
 
The Director -General shall be responsible for the implementation of these R egulations. He  or she  
may delegate t o other officers of the WTO such authority as he  or she  considers necessary for the 
effective implementation of these Regulations.  
 
Regulation  3 
 
Rules made by the Director -General in order to carry out the p rovisions of these Regula tions shall 
be communicated t o the General Council for approva l.  
 
Regulation 4  
 
These Regulations shall not be amended except by the General Council acting upon the advice of 
the Committee on Budget, Finance and Administration (th e Committee). The Committ ee shall 
review these regulat ions at least every  five years.  
 
CHAPTER II. PREPARATI ON OF THE BUDGET  
Regulatio n 5 
 
The WTO biennium shall consist of two consecutive f inancial period s covering each year of the 
biennium. The financial  period shall be from 1 J anuary to 31 December.  
 
Regulation 6  
 
For each financial peri od, the Director -General shall prepare a budget  proposal containing 
estimates of the income and expendi ture of the WTO , together with the comparable figures for the 
previous period.  
 
This budge t proposal, as well as any re visions for the second year of th e biennium as may be 
necessary, will be present ed to the Committee at least eight weeks prior to the la st scheduled 
meeting of the year of the General Council.  
 
The bud get proposal and any prop osed revisions to the budget shall be presented in Swiss Franc s 
(CHF).  
 
Regulation 7 
 
The budget proposal sha ll present the breakdown of expected expenditure by key categories, suc h 
as those for staff, temporary assistance, general  services, travel or capi tal expenditure.  
 
In additio n, the budget proposal shall set out how the Secretari at intend s to deploy the b udgeted 
resources to achieve the WTO’s objectives, showin g, for illustra tive purposes, the breakdown of 
expected expenditur e by key output areas suc h as dispute settlement or te chnical assistance.  
 
The contribu tion to the budget o f the International Trade Centre (ITC) shall be included as one 
category in the WTO  budget proposa l. The detailed ITC budget proposal as presented to  the United 
Nations is pr esented as a separate documen t and is subject to a specific re commendation by the 
Committee.  
 
Expenditure s pecific to  the functioning of the Appellate Body and its Secretariat sha ll be identified 
and subject to a specific recommen dation by the Committee .  
 WT/BFA/W/610  
 
- 4 - 
 
  The budget proposal shall s how the maximum number of Full Ti me Equivalent (FTE) Posts in each 
year of the biennium, together with anticipated changes in the distri bution of the F TE Posts by 
grade and by division.  
 
The budget prop osal shall be accompanied  by such information , annexes and explanatory 
statements as may  be requested by or  on behalf of the General Council, and such further annexes 
or statements as the Dir ector-General m ay deem necessary or useful.  
 
Regulation 8  
 
Supplem entary budget proposals f or the current financial peri od may be submitted by the 
Direct or-General on an ex ceptional basis.  
 
The Dire ctor-General shall prepare supplementary budget proposals in a form consi stent with the 
approved budget . These proposals sha ll follow the same examin ation and approval process as  for 
the annual budget proposals .  
 
Regulation 9  
 
The proposed budget expendit ure shall be financed by income that consist s of: 
 
a) Contrib utions from Mem bers and Observers. A draft scale of contributions to be assessed 
shall be p repared in accordance with Regulation 12; and  
b) Miscellaneous in come, with an expla nation of the source of ea ch item of miscellaneous 
income.  
These figures should be a ccompanied by t he comparable figures for the prior period.  
 
CHAPTE R III. ADOPTION OF THE BU DGET  
Regulation 10  
 
The Commi ttee shall examine the budget  proposal and seek furt her explanations and amend ments 
as it deems necessary. Once the Committee has comple ted its examina tion, it shall prepare a 
report and a recommendatio n which shall be submitte d to the General Council for adoption.  
 
Regulation 11  
 
The sam e procedure s set ou t in Regulations 6, 7, 9 a nd 10 shall be applied to any revision for the 
second fina ncial period of  the biennium. The Director -General may submit a re vised proposal for 
the se cond year of the biennium whe n there are exceptional and unexp ected changes that could 
not have been forese en at the time of the presentation of the budget proposal for the bienniu m. 
 
CHAPTER IV. CONTRIBUTIONS BY MEMBERS AND OBSERV ERS 
Regulation 12  
 
The dr aft scale of contributions to  be assessed to Members is establ ished on the basis of each 
Member’s internati onal trade (imports plus exports) in relation to the total  international trade of all 
WTO Members.  
 
Calculations of assessed  contributions for a give n year shall be based on inte rnational trade 
statistics over a  five year period. E.g. the calculations of a ssessed contributions for 2015 shall be 
based on internati onal trade stat istics for the years 2008 to 2012; or if these stat istics are not 
available,  for the last five years for which statistics are available.  
 
The statistics used  refer to trade in goods a nd commercial services, including intellectual property 
rights payments, derived from the balance of payments statistics of the International Monetar y 
Fund (IMF). Data are based on the IMF's methodology as defin ed in its 5th editi on of the Balance 
of Payme nts Manual (BPM5) up to 2010 and as defined in the 6th edi tion of the Bal ance of 
Payments Manual (BPM6) as of 2011.  WT/BFA/W/610  
 
- 5 - 
 
  Where IM F data deviate from IMF g uidelines and include transac tions not related to goods, 
services or intellectual  property rights, adjustme nts provided to the WTO by the Central Bank or 
the Nationa l Statistical O ffice of a Member shall be taken into account by th e Secretariat when 
adequa tely documented and justified . 
 
If IMF data are not available,  the WTO Secretaria t shall use estimates base d on the best other 
available sources.  
 
A minimum contribu tion of 0.015 p er cent of the total assessed contributions to all Members shall 
be applied to those Members whose share in the total international trade of all WTO Members is 
less than 0.015 percent . 
 
The same minimum contribution shall also be assessed to  Observers.  
 
The contributions shall be assessed and paid in CHF.  
 
Regulation 13  
 
After the  General Council has adopted the budget and the scale of contr ibutions, the Direc tor-
General shall promptly  notify Members and Observers of their financial obligatio ns by providing  an 
invoice and a statement of account.  
 
Members an d Observers have the obli gation to promptly pay their contributions . Contributions 
shall be considered as due and payable in full up on receipt of the invoice or on 1 January of the 
financial  period to whic h they relate, whichever is later. As of 1 January of the following calendar  
year the unpaid balance of s uch contributions shall be consid ered to be one year  in arrears.  
 
With a view to encouraging Members to pay their contributions as early  as possible in  the year in 
which they fall due, the interest earn ed by investing the funds  received by the Secretariat should 
be refunded to the Members  pro rata, dependin g on the amount of their p ayments and on the date 
which they are made, as set out in  Annex A. 
 
Regulation 14  
 
The Director -General shall take appropri ate action with a view to  ensuring that Members and 
Observers pay  their contributions p romptly. The Secret ariat shall report regular ly to the 
Committee on the state of payment of contributio ns. Members and  Observers with arrears shall be 
subject to Adminis trative Measures as defin ed in Annex B. 
 
Regulation 15  
 
Observers may only accede to th e WTO if their cont ributions as Observers hav e been fully paid . 
New Members shall be required to make a  pro rata contr ibution for the year in which they become 
Members, after any relevant deduct ion of their assessment as Ob server which shall also be 
calcul ated on a pro rata basis for that year . New M embers shall also be required to provide their 
proportion of the total ad vances to the Working Capital Fund; this advance sh all be carried to the 
credit of the relevant Member . Payments made by a Member shall be  credited first to the Working 
Capital Fund a nd then to the contributions due.  
 
Regulation 16  
 
Any paym ent in respect of contributions made by a Member which has not pai d in full its 
contributio n for previous calendar years  shall, unless the General Counci l decides otherwise , be 
credited against the earliest date of such arrears.  
 
Regulation 17  
 
A Provision for contrib utions in arrears shall be maintained . 
 WT/BFA/W/610  
 
- 6 - 
 
  CHAPTER V. MIS CELLANEOUS INCOME  
Regulat ion 18  
 
Except in so far as t he General Council may decide oth erwise, all income other than (a) 
contributio ns payable  by Members, (b) interest earned by investing contributions rec eived by the 
Secretariat and not required immediate ly, and (c) income derive d from investments of the Wor king 
Capital Fund shall be classe d as miscellaneous income.  
 
CHAPTER VI. VOLU NTARY CONT RIBUTIONS, GIFTS OR DONATIONS  
Regulation 19  
 
Voluntary contributions, gifts or donations from WTO Members and Obse rvers may be accepted by 
the Director -General provided that the purposes for which the contributions are m ade are 
consistent with th e policies, aims and activities of the WTO, and provide d that the acceptance of 
such contributions which involve additional direct costs* to the regu lar budget of the WTO or 
financial liability for the Organization shall require  prior consent of the Commit tee, in line with the 
guidelines laid out in Annex C.  
 
Voluntary contributions, gifts or donations from Non -Governmental Don ors are subject to the 
additional guidelines laid out in Annex D.  
 
Monies accepted for purposes specified by the donor shall be trea ted as trust funds. A standard 
overhead fee of up to 1 3% may be charged on direct expenditure incurred by trust funds to ref lect 
supporting services provided by the Secretariat. The standard overhead rate can be reduced when 
imple menting partners are being  used and when defined in the agreement signed with th e donor. 
The Programme Support Fund collects the overhead fees from al l trust funds and pays ex penditure 
incurred to support the trust fund 's activities. The Programme Support Fund also releases a fee 
representing 10% of its expenditure to the WTO Secretar iat, that will record it as miscellaneous 
income.  
 
Monies accepted in respect of which no purpo se is specified shall be treated as miscellaneous 
income and reported as "gifts" in the accounts of the fin ancial period.  
 
Monies received by a staff Member as h onorarium in his/her official capacity shall be remitted to 
the Organi zation and be credited to  the WTO Staff Assistance Fund.  
 
Unless otherwise provided, such voluntary contri butions, gifts or donation s shall be administered in 
accordance with the present  Financial Regulations.  
 
* Additional direct costs in this context inc lude salaries, health ins urance contributions, pension 
contributions and travel costs of staff members who  work either fully or part ially i.e. >20% of their 
normal hours  on matters related to a proposed new trust fund charged to the WTO regular budget. 
Additional direct costs are to be clearly identified in any trust fund proposal submitted in 
conjunction with  an offer of a voluntary c ontribution for the purpose of establishing a new trust 
fund. It is the responsibility of the contributor to clearly and tra nsparently identify the e stimated 
additional direct costs involved in implementing the fund’s activities.  Trust fund implementation  
activities includ e training, p rojects etc., aimed to achieve objectives of the trust fund. Indirect 
costs to the regular bu dget of the WTO arising f rom voluntary contributions shall be charged to the 
Programme Support Fund.  
 
CHAP TER VII. USE OF TH E FUNDS  
Regulation 2 0 
 
The adoption of a budget by the General Council shall constitute an authorization to the Director -
General to incur expenditure for the  purposes for which the appropriations were adopted and u p to 
the amounts so adop ted.  
 
 
 WT/BFA/W/610  
 
- 7 - 
 
  Regulation 21 
 
At the end of th e financial period the Director -General shall report on the transfers of credits 
between sections of the expe nditure b udget to the Gen eral Council for approva l. For items so 
identified by  the Co mmittee at the time o f budget finalization , tran sfer shall not  be permitted.  
 
Regulation 22  
 
The Director -General may enter into commitments for future financial periods, provided that such 
commit ments:  
 
a) are for normal o ngoing activities that are mor e effectively procured usin g a multi-year 
approa ch; Where the total expected value of multi -year contracts with a supplier exceeds 
CHF 2 million, the Director -General shall noti fy, as part of the quarte rly financial reporting,  
these contracts to the Commit tee, including details of t he goods or services procur ed and 
the lik ely amounts to be paid under the contract s; or 
b) are authorized by specific decisions of the General Council.  
CHAPTER VIII. THE SURPLUS ACCOUNT  
Regulation 23  
 
a) The budgetary result is defined as the sum of assessed contributions and projected  
miscellaneous income, less, the sum of actual expenditure and actual miscellaneous income.  
 
b) The actual expenditure does  not take into account th e variations in the actu arial provisions for 
the long -term liabilities associated  with staff pensions and Af ter Service Health Insurance if they 
have not been included in the approved budget.  
 
c) The ann ual budgetary result shall b e reported in the WTO Fin ancial Performance Repor t. If, at 
the end of a financial period, the budgetary re sult shows a positive balan ce, this amount shall be 
transferred to the Surplus Account. The Director -General shall make sp ecific recommendations to 
the General Council, throug h the Committee, for the  redistribution of the annual budgetary savings 
in any of  the following ways1: 
 
   i) Application as income against the budget for the next applicable financial period following that 
in which the budgetary s avings occur, thereby red ucing Members' contribut ions. 
 
   ii) Transfer to the Working Capital Fund; or  
 
   iii) Transfer to the Rese rves. 
 
d) If at the end of a financial period the budgetary result shows a deficit, this amoun t will be 
covered, to the ext ent possible, by transfer  from the Working Capita l Fund. Any part of the deficit 
left uncovered after tran sfer of funds from the Work ing Capital Fund shall be included in the 
budget for the next possible financial period.  
 
Regulation 23 Bis 
 
a) Assets are  defined as r esources con trolled by an entity as a result of past events and from 
which future economic be nefits or service potential  are expected to flow to the entity.  
 
b) Liabilities are defined as p resent obligations of the entity ar ising from past eve nts, the 
settlement of wh ich is expected to resul t in an outflow from the entity of resources embodying 
economic benefits or service potential.  
 
 
 
 
 
1 The General Council may, if circums tances so require, au thorise other ways to red istribute the posi tive annual 
budgetary result.  WT/BFA/W/610  
 
- 8 - 
 
  Regulat ion 23 Ter 
 
The sum  of the budgetary result for the period and IPSAS adjustments, including the actu arial 
provisions for pens ion and After Service He alth Insurance, determine the WTO year -end financial 
result. The financial result is  for information purposes only.  
 
CHAPTER IX. THE WORKING CAPITAL FUND  
Regulation 24  
 
The Working Capital Fu nd shall be cons tituted by:  
 
a) assessed adv ances made by Members. S uch sums shall be carried to the credit of t he 
Members whi ch have paid them;  
b) any sum s which the General Council may caus e to be paid into it from time to tim e. Such 
sums sh all be carried to t he credit of the  Organization.  
Regulation  25 
 
Any government acce ding to the WTO shall make an advance to the  Fund in accor dance with the 
scale of co ntributions applicable to the budget  for the year of its accession. The m inimum advance 
to the Working Capi tal Fund amounts  to 0.5 percent of the pr incipal of the Fund for countries or 
separate customs territories wh ose share of t he total trade of Members is 0.5 percent or less.  
 
Regulation 26 
 
The Director -General is authorize d to advance from the Working Capi tal Fund:  
 
a) such sums as may be necessary  to finance budgetary ap propriations pending receipt of 
contribution s;  
b) in excepti onal circumstances , subjec t to prior authorization of the Gene ral Council  on the 
basis of a  recomme ndation from the Committee, such s ums as  may be ne cessary to finance 
commit ments relating to extrao rdinary expenditure . 
Regulation 27  
 
a) Sums adv anced under Financial Regulation  26(a) shall be reimbursed to the Working Ca pital 
Fund as soon as receipts from c ontributions are available for the  purpose.  
 
b) The replenishment of sums adv anced in accordance with  Financial Regulation 26(b) will 
require a d ecision by the  General Counc il, based on a recommendation of the Committee . 
 
Regulation 28  
 
The General Council may liberate all or part of the sums constituting t he Working  Capital Fund, 
and the sums so liberate d in so far as they are derived from monies placed in the Fund under 
Regulation 2 4(a) shall be returned in CHF to the Members which have contributed to the Fund in 
proportion to their respective shares in th e Fund.  
 
Regulation 29  
 
Subject to a decision of the General Council, countries  or separate customs territo ries which for 
any reason cease to be Memb ers of the WTO shall be entitled to the reimbursement of the total 
amount of their shares in the Working Ca pital Fund under Financia l Regulation 24(a)  provided that 
they have ho noured al l liabilities attributable t o them. 
 
Regulation 30  
 
Interest accrued o n the Working Capital Fund shall be added to the Working Capital Fund and 
carried to the credit of the Orga nization under Regulation  24(b) above.  
 WT/BFA/W/610  
 
- 9 - 
 
  CHAPTER X . TREASURY MANAGEMENT  
Regula tion 31  
 
The Director -General shall establish clear and comprehensive fi nancial rules related to treasury 
management activities engaged by the Secretariat. Funds retained by the S ecretariat shall be 
secur ely kept or invested onl y with first class financial  institut ions. 
The Secretariat  shall designate the banks  in which the fu nds of the WTO shall be held. The 
Secretariat shall set criteria for the selection of banks, including a mi nimum credit rating, and 
these criteria shall be included in the WTO’s Financ ial Rules . 
The Director -Genera l shall not engage in any speculative acti vities such as on exchange or interest 
rates.  Monies should only be held in CHF, with the exception of wher e the Secretariat reasona bly 
expects or has commi tted to making payments in o ther curr encies in the near fu ture.  
The investments of monies standing to the credit of any trust funds, reserve or special account 
shall be subject to any directives of the appr opriate authority.  
 
The D irector -General shall in clude in the financial state ments sub mitted to the General  Council a 
statement of th e investments cu rrently held.  
 
Income from investments shall be credited as provided in the rules or agreement relating to each 
fund or account.  
 
CHAPTER XI. FINANCIAL REPO RTING  
Regulation 32  
 
The fin ancial st atements of the Organ ization shall be prepared in accordance wi th the International 
Public Sector Accounting Standards (IPSAS) applicable to the accounting period concern ed. Any 
divergence from t he use of the specified standards shall be explained  in the n otes to the financial  
statements. 
 
Regulation 3 3 
 
Appropriate s eparate accounts shall be maintained in respect of all trust funds, reserves and 
special accounts.  
 
Regulat ion 34  
 
The accounts of t he Organization shall be  maintained and presented in  CHF. Acc ounting records 
may, however, be recorded in bo th the transacti on currency and in CHF.  
 
Regulation 35  
 
The Director -General shall submit the financial statements of the WTO to the External Audit or no 
later than the 31 March after the close of the  financia l period.  
 
Regulation  36 
 
The report of the Ext ernal Auditor sh all be transmitted to the Committee together with the audited 
financial statements  in a timely manner,  allowing sufficient time for the Committee to examine  the 
report and the audited financial  statements in advanc e of the regular meeting of the General 
Council in July.  The Committee on Budget, Finance and Administration shall examine the financial 
statements a nd the audit report with a view to making a recom mendation to the General Cou ncil 
to approve the financial statemen ts. 
 
 
 
 
 WT/BFA/W/610  
 
- 10 - 
 
  Regulatio n 37 
 
The Director -General shall also provide to the Committee:  
 
a) Reports  on the financial position and performance of the Organization, for the fir st 6 months 
and year -end. The year-end report shall include information on the fin ancial perfo rmance of 
the Organi zation by acti vity (for example, technical assistance or dispute settlement).  
b) Annual reports on human resources , with details on the evolutio n of the grade structure , 
salary ad justments , employ ee benefits, diversity of staf f, internal mobility of st aff, external 
recrui tment activities and learning and development.   
CHAPTER XII. INTERNAL CONTROL  
Regulation 3 8 
 
The Direct or-General shall:  
a) establi sh an effective system o f risk management to identif y and address internal and 
external risks to the Secreta riat; 
 
b) establish det ailed financial  rules and procedures in order to ensure effective financial 
administration and the exer cise of economy;  
 
c) cause a ll payments to be made o n the basis of appropriate s upportin g documents and other 
documents which ensure tha t the services or go ods have been r eceived and that payments 
have not previously been made;  
 
d) designate the officers who may  receive monies, incur ob ligations and make payme nts on 
behalf of the WTO. Al l payments shall require a min imum of two signatories;  
 
e) maintain an internal  control system  which shall ascertain the accomplishment of established 
operational objectives; complia nce with policies, proced ures, rules and regulati ons; and 
safeguarding of ass ets. The internal control syst em shall also provide for an effective current  
examination an d/or review of financial transactions in order to ensure:  
 
• the regularity of the receipt , custody and disposal of  all funds and other fin ancial resources of 
the WTO;   
• the conformity of obligation s and expenditures with th e appropriations or other financial  
provisions approved  by the General Council, or with the purposes and rules relating to trust 
funds and special a ccounts;  
• the economic us e of the resources of the WT O;  
• the reliability and integr ity of the information on which such use is ba sed; 
f) maintai n an internal oversight function, which shall be responsible for providing independent 
and objective assessments of the adequacy and effecti veness of the Organization's  internal 
control system, mana gement practices, budgetar y control and allega tions of mis conduct, in 
all its forms , at the WTO. For this purpose, the internal oversight function sh all have 
unrestricted acc ess to all functions, ac tivities, operations, proces ses and information within 
the Organization . 
 
Regulation  39 
 
Commitments or obligations sha ll not be incurred and payments shall not be made unless an 
appropriate authorization ha s been made under the authority of the Director -General.  
 
Regulation 40  
 
The Director -General may, on an ex ceptional basis, make such  ex-gratia  payments as he or she  
deems to be necessary in the interests of the WTO. A statement of such payments shall be 
submitte d with the final accou nts. WT/BFA/W/610  
 
- 11 - 
 
  Regulation 41  
 
The Dir ector-General may, after ful l investigation, author ize the writing off of los ses of cash, 
supplies, equ ipment and othe r assets, other than arrears of contributions. A statement of all such 
losses written off  during the financial  period shall be submitted t o the External Auditor with the 
final accounts.  
 
Regulation 42  
 
The Director -Genera l shall establish r ules for the pr ocurement function. The procurement function 
includes all actions necessary for the acqui sition, by purchase or le ase, of property, includ ing 
products and real proper ty, and of services, in cluding works. The followi ng gene ral prin ciples shal l 
be given due consideration when exercising the procurement function of the WTO:  
 
• Efficient and effecti ve use of the Organizatio n's resources ;  
• Non-discriminatory, fair, open compe tition and equal opport unity for vendors ;  
• Transp arency ; 
• Best value for the  money in term s of quality and price ; and  
• Accountability .  
Tenders for property and services shall be in vited by a recognized met hod of solicitation, exc ept 
where the Director -Gener al deems that, in the i nterest of the WTO, a depa rture from this financial 
regulation is desirable.  In such cases, a statement specifying the precise amount, the payee and 
the rat ionale for the departure from this financial regu lation , shall be disclosed i n the Financial 
Perform ance Report of the c oncern ed yea r. 
 
CHAPTER XIII. EX TERNAL AUDIT  
Regulation 43  
 
The General Council shall appoint an External Auditor to perform the audit o f the financial 
statement s of the WTO and of its Pension Plan in accordance w ith Regulation 4 4 for a six-year 
period non -renew able. 
 
The External Audito r shall be the  Supreme Audit Institution of a Member of the WTO.  
 
The Committee shall organize an open i nvitation to bid, define selection criteria, exam ine offers 
received and make  a recommendation to th e General Council to appro ve the  appointment of a ne w 
External Aud itor before the end of the mandate of the current External Auditor.  
 
The External Auditor shall not be removed duri ng his tenure of office except by the General 
Counci l. 
 
Regulation 44  
 
The External Auditor shall be requir ed to audit the WTO and the WTO’s Pension Plan  financial 
statements in accordance with INTOSAI Auditing Standards and other generally accepted 
intern ational standards such a s the International Standard s on Auditing issued by  the International 
Federat ion of  Accountants and exp ress an opinio n thereon. The External Auditor shall be required 
to conduct itself in conformity with the  INTOSAI Code of Ethics a nd other generally accep ted 
professional standards.  
 
The mandate of the Ext ernal Auditor shall compri se reg ular and performance  audits as def ined by 
the INTOSAI Auditing  Standards .  
 
The External Auditor shall be completely indepen dent and solely responsib le for the conduct of an y 
audit that it undertakes.  
 
The General Council ma y request the External Auditor to perform certain sp ecific examina tions and 
issue separate reports on the results.  WT/BFA/W/610  
 
- 12 - 
 
  Regulation 45  
 
The Director -General shal l provide the External Aud itors with the facilities  he or she  may require in 
the perfo rmance of the a udit. 
 
In the event of a d isagreement b etween the Director -General and th e External Auditor on the 
facilities to be provided, the Director -General should seek guid ance from the General Coun cil. 
 
Regulation 46  
 
The External Auditor shall issu e an annual rep ort on the audit of the fi nancial state ments to the 
Commi ttee in a timely  manner , in accordance with Regulation 36 . The External Auditor may also 
report to the Com mittee on financial issues , on performance audits and/or special reports on an y 
issue deemed of significance by the Ext ernal Auditor , or any issue rai sed by the Gener al Council in 
accordance with Regulation 4 4.  
 WT/BFA/W/610  
 
- 13 - 
 
  ANNEX A 
 
WTO EARLY PAYMENT ENCOURAGEMENT  SCHEME  
With a view to e ncouraging Members  to pay th eir contributio ns as early as possible in  the year in 
which they fall du e, the interest earned by investing the funds received by the Secretariat should 
be refunded to the Members  pro rata, depending on t he amount of their payme nts and on the date 
which th ey are made . As a consequence, the miscel laneous income  in the annual in come budget 
estimates will no longer include the item for interest earned on investments.  
 
As a general rul e, the secretariat, upon receiving contributions,  invests in short term depos its the 
funds w hich are not to be used im mediately . Since the total inte rest received is  a combination of 
three factors:  
a) the amount of funds held in deposit;  
b) the duration of the d eposits;  
c) the interest ra te; 
 
The amount to be di stributed can only be known with precision at the close of the budget  year. 
Therefo re, the crediting  operation can p hysically take place only after the beginning of the new 
financial year, in other words, to o late in principle for t he amount credited to be  deducted from the 
contribut ions assessed f or the new financial year . Consequently only the contribu tions assessed f or 
the second following year would be reduced by the amount of interest accrued . The scheme  would 
work as follows:  
 
• YEAR A   interest is cre dited; at the end of the yea r the allocatio n of interest is 
determine d; 
• YEAR A + 1    the contributio ns assessed for year A+2 are calculated when the budget 
estimates are prepared; interest credit is taken in to account and deducted f rom the 
contributions as sessed for year A+2;  
• YEAR A + 2   payment o f contribution assessed le ss interest cr edited.  
Bearing i n mind that the date of payment and the amount paid are two important factors, one 
could consider that the determination of the amou nts of interest to be di stributed should be based 
on a formula unde r which these two factors would serve as  a basis for the calculations of interest 
entitlements.  
 
Where a contribution was received during the year when it was due, a number of points to be 
credited to the account of the Member  concerned woul d be calculated  as follows;  
 
number of po ints  = amount  X number of days  to run up to th e end of the year (360 days)  
         10,000  
 
For example   assuming a Member  paid CHF 200, 000 on 17 March, the numb er of points crediting 
in its favor would result fro m the following  formula:  
 
200,000 X 283  = 5,660  
            10,000       
 
Assuming furthe r that the total number of points apportioned during the year amounted to 
350,000 and that the amount of interest to  be distributed was CHF 150,000, the amount credited  
to the Member  concerned would be:  
 
150,0 00 X 5,660  = CHF 2,426  
   350,0 00 
 
Should the Member  have paid its contribution on 10 October (number of days to run up to the end 
of the year: 77) the amount cr edited would have been CHF  660. WT/BFA/W/610  
 
- 14 - 
 
  ANNEX B 
 
ADMINISTRATIVE MEASURES F OR MEMBERS AND OBSERVERS IN ARR EARS  
 
Cate-
gory Administrative Measures  
I After one but less than two full year's  assessed contributions r emain outstanding at 
the end of the year:  
1. Represe ntatives  of Members will not  be nominated t o preside over WTO bodies  
2. Documentation will not be post ed to delegation s in Geneva nor to the Members' 
and Observers' capitals.  
3. At the beginning of each year, the  Director -General will no tify the Ministers of 
the Member s and Observers resp onsible for the  WTO of the applicable 
administrative mea sures.  
4. The Direc tor-General will  contact annually the Minister of the Members' and 
Observers' responsible  
for the WTO, or any other official at the  appropriate level empha sizing t he 
question of arrea rs. 
5. The Secreta riat will report annually to the Committe e on Budget, Fin ance and 
Adminis tration on the implementation of administrative measures.  
6. Members and Observers will b e sub ject to specific reportin g at the General 
Council  meeting s.2 
II After two bu t less than thr ee full year's  assessed co ntributions rem ain outstanding 
at the end of th e year, in addition to the measures of Category I:  
1. The access of the WTO Members' web site will be discontinued.3 
2. The ability of Members to act on t he recommendations b y the Committee  on 
Budget, Finance and Ad ministration to  the General Cou ncil on financia l matters 
will be removed.  
3. Observers will be denied access to training or technical assista nce. 
The Chairs of the ac cession working group of  Observe rs will remind the d elegation of 
Observers, during their work ing group meeti ng, of their fin ancial obligatio ns. 
III After three full year's  assessed contributions remain outstanding at the end of th e 
year, in addition to th e measures of Categories  I and I I: 
1. Members and Obser vers will be de signated as Inactive Membe rs and Inactive  
Observers, resp ectively.  
2. Inacti ve Members will be denied access to training or technical assistance other 
than that necess ary to meet their WTO Art icle XIV -2 obligations.  
3. The acce ssion working groups  do not meet ei ther formally or informall y. 
WTO will sus pend its request  for annual cont ributions from Inactive Observers . 
Request for annual contributions will resume the year th e Observers are not 
anymo re designated as Inactiv e.4 
4. Inactive Members and Obs ervers taking t he floor in the General Co uncil will be 
identified as suc h. 
 
 
2 See Gener al Coun cil procedures.  
3 Applicabl e to Members and Observers.  Under current policy, Observers have a differentiated access to 
documents posted on the Members' Website.  
4 To be enforced starting 1 January 2013.  WT/BFA/W/610  
 
- 15 - 
 
   
GENERAL C OUNCIL PROCEDURES FOR MEMBERS AND OBSERVERS  
SUBJECT TO ADMINISTRATIVE MEASURES  
 
At the begi nning of each calendar ye ar, the Committee on Bud get, Fin ance and 
Administrat ion will notify  to the General Council th e list of Membe rs and Observers  under 
Administr ative Measures, with a recommendation that these Members and Observers be urged to 
liquidat e their arrears.  
 
At the end of each meeting of t he Gener al Council , the Chai rman of the Com mittee 
on Budget, Finance and Administrat ion will provide  information wit h regard to which Members and 
Observers are under Administrative Measures. The Chairman of the General Council will request 
Members and Obse rvers in  Categories II and I II to inform th e Secretariat as to when t he payment 
of arrears may be ex pected.  
 
Each ye ar the Director -General  will report on the results of his contacts with Members’ 
and Observ ers’ authorities on the i ssue of arrears.  
 
* * * * * * *  
 
 
SPECIAL PROVISIONS  FOR THE SUSPEN SION OF ADMINISTRATIVE MEA SURES  
FOR INAC TIVE MEMBERS AND  OBSERVERS  
 
 
The General Council can suspend the application of Administrative Measures for Members 
in Cate gory III which agree to, and abide by, a defined schedule  of instalment  payme nts aimed at 
liquidating all arrears.5 
 
Those Members wi th pre -1988 arre ars that were as sessed at the minimum contribution 
may benefit from a reduction in those arrears to the lev el of the 1989 minimum co ntribution. For 
each ful l paymen t of an annual contr ibution between  1988 and 1994, any contra cting party wit h 
pre-1988 arrea rs may cancel an  equal number of assessments for 1987 and earlier years upon 
payment of the  1989 minimum co ntribution amounting to C HF 19,137. The differenc e betwee n a 
pre-1988 assessm ent and the pay ment of CHF  19,137 would b e funded by the  Miscellaneous 
Income of the  WTO.6 
 
The General Council can suspend the application of Administrative Measures for Observer s 
that are in Category II I on 1 January 2013, whi ch agree  to, and abide by, a  defined schedu le of 
installment payments  aimed at liqui dating all arrea rs.  
 
 
5 Amend earlier  decisions of t he General Counc il in 1988 (C/M/226 ) and 1994 (C/M /273) to reflect the 
reduce d number of categories.  
6 As approved by the General Council in 1994 (C/M/273).  WT/BFA/W/610  
 
- 16 - 
 
  ANNEX C  
 
WTO SECRETARIAT'S GUIDELINES FOR THE RECEIPT AND NOTIFICATION OF 
VOLUNTARY FUND CONTRIBUTI ONS FROM MEMBERS AND OBSE RVERS  
• In keeping with a commitment to streamline the procedures for  the notification, approva l, 
implementation an d reporting on voluntary fund contributions, the Director -General has authorised 
the following guidelines which are ai med at improving transpar ency and consistency in the 
handling of all voluntary funds. These procedures shall be applie d in strict conformi ty with 
Financial Regulation 19.  
• In the case of formal pledges made for the future establishment of a trust fund or trust 
funds, these pledges will be notified to Members for transparency purposes. Once an actu al fund is 
proposed in fur therance of the pled ge, it will be notified as such, in accordance with the guidelines 
below.  
• All voluntary funds will be submitted to the  Director -General for his /her consideration and 
may be accepted where he /she determines that  "...the purposes for whic h the contributions are 
made are consistent with the policies, aims and activities of the WTO".  
• In considering the proffered voluntary con tribution, the Director -General will receive the 
Administration and General Services Divisio n's (AGSD) determination w hether the contribut ion 
would involve additional direct costs to the regular budget of the WTO or financial liabilit ies for the 
Organizati on, as defined under Fina ncial Regulation 19 . 
• When the Director -General assesses the proffer ed funding positively, and  upon receipt of the 
AGSD 's assessment, a notification will be transmitted to the Committee on Budget Finance and 
Administration (CBFA) fo r consideration  in the fo llowing manner:  
• Where the voluntary contributions/ fund involves no additional direct costs to  the regular 
budget of the WTO or financial liabilit ies for the Organization, the CBFA will be notified  
by the Director -General  prior to t he receipt of such volunt ary contributions for 
transparency purposes.  
 
• Where the voluntary contributions/ fund involves  additional direct costs to the regular 
budget of the WTO or financial liabilit ies for the Organization , the notification will be 
submitte d by the Director -General  for consideration and consent by the CBFA.  This will 
be done by in cluding such notifications  as an agenda ite m in the upcoming CBFA 
meeting and documents related to such agenda item shall be circulated in accordance 
with the agree d rules of procedure for distributing CBFA meeting documents.  
 
• The Director -General's notification to the CBFA  of all trust funds aris ing under voluntary fund 
arrangements shall contain the following information and supporting documentation thereof:  
• The objectives of the trust f und; 
• The expected beneficiaries (if specified);  
• The implementation strategy; 
• The expected deliverables;  
• The amount of the funding dedicated to the trust fund;  
• The expected duration;  
• The implementation partners identified;  
• An estim ate of the regular budget  impact, including staff time and other resources, of 
implementatio n of the fund’s activit ies 
• The Secretariat focal points for the trust fund ; and  
• The Governing Body . WT/BFA/W/610  
 
- 17 - 
 
  ANNEX D 
 
VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS FROM  
NON-GOVERNMENTAL DO NORS 
Given that voluntary contributions, gifts or  donations (hereafter "donati ons") from non -
government al donors could be of benefit an d since Members  are committed t o ensuring that no 
conflict of interest should arise through the accepta nce of such donati ons, it is herein affirmed that 
the process with regard to such donations will  be governed by the follo wing guidelines.  
 
1. Donations prop osed by private  individuals and  non-governmental, non -profit organizations or 
foundations (non -governme ntal donors) may b e considered. These may include donations of 
goods or services "in kind"; howe ver, secondment of staff from non -governmental donors to the 
WTO is proh ibited.  
2. Donation s from non -governmental donors which are for -profit organizations or com panies shall 
not be accepted.  
3. The activities, aims and motivations of the non -governmental donor s mentioned under 1 above  
shall not be incompatible with the policies, a ims and activiti es of the WTO and, as mentioned 
above, shall no t give rise to a conflict  of interest.  
4. While non-governmental donors shall be encouraged to make donations to the Doha 
Development Agenda Global T rust Fund at large, the donor ma y specify one o r more activitie s 
associated with WTO programs as the purpose o f the donation.  
5. All propo sed donations from  non-governmental donors shall be notified to the  Committee on 
Budget, Finance  and Administration which  shall promptly consider the pro posals. The Dir ector-
General sh all accept a proposed donation only after the C ommittee has approved the  proposed 
donation  and its intended use(s). It is recognized that t he Committee may wish to cons ider 
establishing a subsi diary working group to make reco mmendations to it relative to p roposed 
donations.  
6. The notification shall inclu de full details regarding  the activities, a ims and motivations of the 
non-governmental donor s mentioned under 1 above and  the intended uses(s) of the donation.  
7. All accepted donat ions from non -governmental dono rs shall be placed in a trust fund and be 
disbu rsed in a manner that tak es into account th e broad objectives of the Committee on Trade 
and Development, the Memorandum o f Understanding Establish ing the Global Trust Fund and 
any additional mo dalities to be e stablished for the purpose of disbursing the re sources of the 
trust fund . 
8. Donations shall not entitle non -governmental donors to use of the  WTO name or logo in any 
way. Full details relative to  all accepted donations from non -governmental d onors and their 
uses shall be included in the Director -General ’s Budgetary and Financial  Report on extra -
budgetary funds.  
9. Information with regard to accept ed donations shall also be ma de available on the WTO W ebsite 
in order to ensure transp arency.  
 
__________