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WT/BFA/211  
 
10 May 2023 
(23-3224) Page: 1/33 
Committee on Budget, Finance and Administration    
 
 
REPORT OF THE MEETING S HELD ON 9  AND 16  MARCH 2023  
The Committee on Budget, Finance and Administration (CBFA) met on 9 and 16 March 2023. 
Her Excellency Ambassador Dr. Bettina Waldmann, German Ambassador to the WTO , welcomed 
Members to the meeting s. 
1  ADOPTION OF THE AGENDA  
1.1.  The Chair recalled that the airgram and annotated agenda for the meeting were released on 
27 February , bearing the references WTO/AIR/BFA/5 8 and JOB/BFA/ 75, respectively . 
1.2.  The Chair proposed that ag enda item s J and K, pertaining to the WTO Pension Plan, be brought 
forward to be discussed immediately after agenda item B, in order to allow the Chair of the WTO 
Pension Plan Management Board  (WTOPP Chair) to take part in the discussion s before leaving  to 
attend to other pressing engagements . 
1.3.  The agenda, as set out in document WTO/AIR/BFA/5 8, with the modifications reflected in 
paragraph 1. 2. above, was adopted.  
2  ORAL REPORT FROM THE CHAIR ON ONGOING WORK  
2.1.  The Chair recalled the subject  of long -term liabilities , saying  that the Committee had  several 
meetings on the reform of the WTOPP  (pension reform),  since the beginning of the year. She noted 
that the WTOPP Chair, Mr. Jean -Marc van Dril, would  update the Committee on the work of the 
WTOPP Management Board (the Board ). She added that Mr. Darryl Leong (Singapore DPR), who 
serves as Facilitator for the ongoing informal process  pertaining to the pension reform , would provide 
an update to the Committee . 
2.2.  The Chair expressed the hope that the Committee can bring the pension reform process to a 
successful conclusion by June.  She said this would allow the Committee  to focus on ensuring the 
timely consideration and passage of the WTO 2024 -2025 budget proposal  and provide positive 
momentum ahead of  MC13.  
2.3.  The Chair recalled that during the Committee meeting on 8 November  2022, she had 
highlighted the importan ce for staff to be informed about issues that are of concern to them, such 
as pension reform . She said  she and DDG Ellard  had suggested, in the interest of transparency, that 
the WTOPP Chair circulate the recommendations of the Board to staff , which  has been done . The 
Chair thanked the WTOPP  Chair for having met with the Staff Council and for having organized a 
townhall meeting with all staff on 18 November  2022 to provide an opportunity for them to express 
views and ask questions about the pension reform proposal.  
2.4.  The Chair informed the Comm ittee that she too had met with the Staff Council on 6 February 
to hear their views.  She said the meeting was very constructive and that she and the Staff Council 
agreed to meet again.  
2.5.  The Chair recall ed that, during the TNC/ Informal HODs  meeting on 28  February , the 
Director -General announced that Ambassador Dacio Castillo would organise – as a Facilitator – focus 
group meetings to collect ideas and thoughts regarding a basic and overarching strategic vision , or 
mission statement , for the Secretariat. The Chair noted that the process would  not involve 
developing a strategy for the WTO itself. She said her understanding is that, g iven the Committee 's WT/BFA/211  
 
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  interest in the matter, the Director -General suggests that the Member outreach begin with the CBFA. 
The Chair said she e xpect s to have more details to report to the Committee shortly.  
2.6.  The Chair informed the Committee that the new Director of the External Audit Team, 
Mr. Richard Bellin  (the Auditor) , would  present the Audit Report on the Governanc e and Management 
of Extra-Budgetary Trust Funds (the Audit Report) and respond to Members'  questions. S he informed 
Members  that if they had further questions for, or wishe d to meet separately with, the Auditor , she 
would be happy to help organize a meeting.  
2.7.  The Chair recall ed that the previous Auditor , Mr. Metzger, had made a request to attend all 
meetings of the CBFA that he deems necessary, on a permanent and systemic basis. The Chair said 
a copy of the request was circulated to Members on 5  Decemb er 2022  (JOB/BFA/71 ). The Chair 
recalled that the General Council had agreed that the External Auditor s would audit the financial 
statements of the WTO and the WTOPP  and conduct one performance audit per year  focusing on one 
aspect of the WTO.  The Chair sa id the External Auditors ' terms of engagement do not foresee  the 
Auditor  attend ing CBFA meetings in which he is not presenting one of the reports required by the 
General Council. The Chair said she  fully support s the need for the  External Audit ors to have access 
to information and materials to carry out their mandate.  In this regard, she noted that  the 
Secretariat h as assured her that it has been  responding  and will continue to respond completely, 
thoroughly, and in a timely manner , to all requests  for information and materials, including detailed 
reports on CBFA meetings. The Chair said n evertheless the Auditor 's request still stands. She then 
asked Members to  let her know whether the Committee should respond favourably to the request.  
2.8.  A Member said his delegation  had asked for some additional clarification s about the  purpose of  
focus groups  under paragraph 2.5 . He said he was asking this question  from the perspective of being 
very eager to participate . The Member said the Chair had indicated that focus groups would be 
established with Members to discuss a mission statement, adding that he had not clearly heard if 
the Chair had said this w ould not involve  strategic  orientation of the Organization . He asked the 
Chair to clarify this or point his delegation  to the right person . He added that his delegation  does 
not want to participate in a focus group that has no point  and is therefore interested in understanding 
the terms of reference . 
2.9.  In response to the Chair's question at paragraph 2. 7. regarding the letter from the Auditor,  
two Members said their delegations are  open to, or have no objection, to the Auditor  attending 
meetings of the CBFA.  
2.10.  A Member sought clarification regarding the focus groups a nd the ir relevance to the strategic 
vision. She further said her delegation still needs to seek further guidance regarding the request by 
the Auditor  to participate in CBFA meetings.  
2.11.  In response to the comments at  paragraph s 2.8. and 2.10.  regarding a mission statement  
and focus groups , DDG Ellard said the Director -General , at the General Council  meeting , committed 
to Members that she would provide a short one -page paper that describes the activities that she 
was talking about. DDG Ellard highlighted that the  aim of the exercise , as the Chair described, and 
as the Director -General had described both at the TNC and General Council  meetings , is to prepare 
a mission statement  – a broad short overarching statement for the Secretariat , not the WT O as a 
whole. DDG Ellard said the Secretariat is interested in having Members' input into the process 
through the focus groups.  
2.12.  Noting the tremendous interest that the CBFA has in strategy overall, DDG Ellard said the 
idea is to start with CBFA. She said t hat she is well aware that the CBFA ha s repeatedly stressed the 
need to have a strateg ic framework for the Organization  so that the Secretariat can best deploy its 
staff and other resources . She said she is fully in agreement with that  goal and that the planned 
exercise is the first step . She said the process is intended to determine the Secretariat's  overall 
vision and mission statement,  which can then be used to later on develop the organizational strategy 
that Member s have been requesting. She said this latter aspect,  which  pertains to  resources, would 
be a second step . 
2.13.  The Chair proposed that the Committee take note of the comments . She added that she would 
revert to the Committee  with a proposal on how to proceed . WT/BFA/211  
 
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  3  UPDATE FROM THE CHAIR OF THE WTO P ENSION PLAN MANAGEMENT BOARD  
3.1.  The Chair welcomed the WTOPP Chair  to the meeting.  
3.2.  The WTOPP Chair updated the Committee on further steps that were  taken  by the Board  since 
the last update that he had given to the CBFA , in December  2022. He added tha t he would let the 
facilitator of the informal C BFA sessions on the pension  reform , Mr. Daryll  Leong , DPR of  Singapore , 
update the Committee on that specific process . 
3.3.  The WTOPP Chair  informed the Committee that  the Board is making r eal progress regarding 
the issue of the underfunding o f the WTOPP  and the proposed measures . He said the members of 
the Board  are collectively work ing towards a balanced and responsible package for a pension reform. 
He invite d the Committee  to stay engaged on the topic , as the soon er the pension reform  elements  
can be implemented , the less burdensome it will be to address the issue. He added that he is  always 
open to meeting with interested Members , bilaterally or in small groups , as these  interactions provide 
an opportunity for del egations to ask specific questions and informally share their initial views on 
the pension reform proposal. He said s everal Members have already taken up the offer. 
3.4.   The WTOPP  Chair informed the Committee that the Board c ontinue s to work on processing the 
feedback received from stakeholders and further explor ing technical aspects of the draft pension 
reform  proposal , from the actua rial and legal standpoint . He said the  Actuaria l Working Group ha d 
convened twice  and that the draft pension reform  proposal  was further reviewed in a formal meeting  
of the Board. He added that questions that  were received by the WTOPP  Secretariat , from staff and 
retirees , were  compiled into a Frequent ly Asked Question s document , with  answers included  therein . 
3.5.  The WTOPP Chair said that, o verall, there has been a constructive approach on the part of staff 
and recognition that the challenge of underfunding is real and will require good faith engagement 
from all sides. He note d that staff and retirees  had raised questions regarding respect for  their 
acquired rights for past services , and about the willingness of Members to bear a fair share of the 
burden . The WTOPP Chair said  in terms of consultations with stakeholders, he engaged further with 
the Administration, as several measures will have direct or indirect implications on managing the 
workforce and staffing policies.  
3.6.  The WTOPP Chair said  the Board will consider the feedba ck from all stakeholder group s before 
adopting a formal proposal , which  will be submitted to the CB FA. He said the proposal would also 
take into account views  expressed by the Administration and  Members . He said the Board's intention 
is to allow the C BFA time to formally engage with the proposal before having  to turn its attention to 
the WTO budget and preparations for MC13. 
3.7.  The WTOPP Chair reiterated that the longer the funding gap  is not addressed , the larger the 
problem becomes . He said this was also underlined by the WTOPP 's actuarial and investment 
external advisers  during the  informal CBFA consultation session that had taken  place on 8 March . 
He said he and the Board remain committed to engaging actively with Members  and all the 
stakeholders of the WTOPP  to find an appropriate package that will return the WTOPP  to a long -term 
sustainable footing . 
3.8.   The WTOPP Chair underlined that, considering  some of the questions and comments received 
from Members, while the Board can ex plore options to reduce future risk s the WTOPP  may face over 
the long -term, there is a difference between the future de -risking and addressing the current funding 
gap. He added that, should there be a wish to change the design of the WTOPP  by shifting t he risk 
burden to future staff, this would be  a track of work separat e from the current actua rial deficit , and 
would require a clear mandate from Members.  
3.9.  A Member thanked the WTO PP Chair and the Facilitator of the informal CBFA consultatio ns, 
adding that the informal consultations have been extremely important in raising Members ' 
understanding  of the issue. He said this is probably one of the most challenging tasks that  the 
Organization faces , and he expressed appreciat ion for the WTOPP Chair's and the Facilitator's efforts 
in moving the subject  forward . 
3.10.  The Member said he has a question that cuts across the pension item, the transformation 
exercise , and the work plan . He said the WTOPP Chair's comments confirmed that the problem the WT/BFA/211  
 
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  Board is tasked with resolving is confined to the existing structure  of the WTOPP , with limited  
variables in what has to be done  to restore its financial health . The Member said his delegation is of 
the view that it is worth while for a conversation  to be initiated  from the persp ective of long -term 
risk, recruitment , and a fit-for-purpose future WTO . He added that, bearing in mind the complexity 
of the acquire d rights of existing employees , if people continue to be hired into a system that is 
going to go back to an underfund ing problem in the future, his delegation is of the view that M embers 
ought to put some effort into creating a mandate  for addressing and evaluating the future of what 
a more modern , responsive pension system would look like . 
3.11.  The Member said their delegation  remain s very active in trying to solve the current problem  
as one of his colleagues  sits on the Board. He said his delegation is open and interested in hearing 
from other Members about where to poten tially have the conversation to establish a mandate to 
examine what Members would want to do going forward . He said the possible outcome could be that 
everything is fine  or examining other  pension plan approaches , such as defined benefit together with  
defined contribution , which might be more suited to the future . 
3.12.  A Member thanked the WTOPP Chair and other colleagues for the good work. He said the topic 
under discussion is very important and perhaps a bit overdue. He said Members should have looked 
into this at an earlier stage. The Member said his delegation is also aware of the need to come up 
with timely solutions and steps in the right direction, and thus  expressed su pport  for the comments 
made by the Member in paragraph 3.10.  
3.13.  The Member said, r egarding a second track, the Committee  may have to look into options to 
come up with solutions that are more structurally sound than those that currently exist. He said this 
could involve basic discussions about the set-up of the pension plan and  could include the solidarity  
between the  current  staff, retired  staff, and future staff, on one hand , and Members,  on the other 
hand. He said there could be  a clear role for the Director -General to moderate this discussion on the 
longer -term perspective . The Member said this work goes beyond the current  mandate of the Board. 
He said starting this second track and the related issues and ideas may be the condition for accepting  
the short -term solutions . He said it would be difficult for his delegation to advance the short-term 
solutions , which are quite costly , with his capital without  the Committee  having started on this 
longer -term perspectiv e. 
3.14.  The WTOPP  Chair thank ed the Chai r and Members for the ir support ive comments. He 
confirm ed that, should there be a wish by Members  to look at the design of the WTOPP , this would 
be somethin g the Board c ould do, with guidance  from Members . The Chair said th ese types of deeper 
pension reform  element s are inevitably linked to certain costs because of the income  basis of the 
current pension plan. He informed the Committee t hat if future staff is to be in a new pension plan , 
they would not contribute to the pension plan  currently under discussion , reducing resources . He 
said the question  would be whether or not it is worth assuming  the cost and ensuring the de -risking 
of the pension plan over the long -term. He reiterated the urgency  of address ing the actuarial gap , 
emphasiz ing that each year  of waiting would increase it. 
3.15.  The WTOPP Chair  said the Board includes  representatives of Members, staff , and retirees. He 
said the representatives  perform  Board duties in addition to their daily work and are supported by 
the WTOPP Secretariat staff. He said the Board is reaching its limit in terms of the engagement it 
has had during the past year, and that  it had met three times more than in previous years under 
regular circumstances. He said this resource aspect is something Members have to keep in mind. He 
then thanked the Chair and Members for their comments and reiterated that he remains available 
for any questions.  
3.16.  The Chair t hanked the WTOPP Chair and suggest ed that the Committee take note of his 
update , and the comments made by Members . She added that she we will come back to Members  
on the best way to proceed . 
4  REPORT OF THE FACILITATOR FOR THE REFORM OF THE WTO PENSION PLAN  
4.1.  The Chair invited the  Facilitator of the  informal process pertaining to the pension reform  (the 
Facilitator ) to update the Committee on discussions that were held over recent weeks.  WT/BFA/211  
 
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  4.2.  The Facilitator informed the Committee that the level of  participation and engagement  on the 
subject were excellent, with around 40 participants joining in person and virtually  most sessions , 
which demonstrates the usefulness of the exercise . He said the granularity of the questions asked 
demonstrated a healthy level of interest and engagement with the pension reform process, giving 
him optimism that the sessions will serve their intended purpose.  
4.3.  The Facilitator recalled that the objective of the informal sessions is to ensure a common 
understanding of the situation . He said a s the elements contribu ting to an actuarial valuation can be 
rather technical, it is important for Members to have a space to raise questions. He added that the 
sessions have been designed to allow Members to also express views and concerns , and that 
questions and concerns raise d in one session guided the themes of subsequent sessions.  He said, 
overall, this informal process is intended to allow the Board to have a sense of how Members are 
thinking about the pension reform proposal , and to hopefully allow Members to converge arou nd the 
key topics to be further explored in the more formal CBFA meetings this year.  
4.4.  The Facilitator informed the Committee that there ha ve been 4 sessions so far , with an 
additional one anticipated later in March . He said the topics that were addressed , in addition to a 
kick-off organizing session where important background information was reviewed, include: the legal 
implications of acquired rights in an international organization setting ; comparisons with other 
international organizations , both in terms of pension conditions and examples of pension reforms ; 
and the opportunity to pose questions to the WTOPP's  Consulting Actuary and Investment Advisor.  
He highlighted that the session foreseen for later in March will be a wrap -up session for the process . 
He invited Members to share any thoughts or contributions  regarding  topics to be discussed  at the 
final informal session . 
4.5.  The Facilitator said the q uestions and concerns that have emerged  include : how to finance the  
pension  reform, particularly w ith regard to the proposed capital infusion ; the relative burden sharing 
among stakeholders ; how the WTOPP situation compares to situations in other organizations ; and 
why the UN Joint Staff Pension Fund is not currently in the same situation.  
4.6.  The Facilita tor said Members are furthermore interested in understanding the options that 
might be available to de -risk the pension plan for the future.  
4.7.  He thanked Members for their support in th e process , adding that he is available to consult 
with Members on specific points or questions. He asked interested Members to reach out to him, 
adding that the final informal CBFA session is planned to take place on 20 March.  
4.8.  A Member thanked the Facilitator, the WTOPP Chair , and the  Secretary of the WTOPP for their 
efforts . He said as Members think about reform broadly , small and targeted meetings , like those 
that the CB FA holds , are instructive and can be helpful in terms of guiding what Member -driven work 
looks like. He said these  small group initiatives of the CBFA are very targeted in time and topic and 
have systemically  been very important in bringing other Members into certain conversations.  
4.9.  The Chair thanked the Member whose comments are reflected in paragraph 4.8. above. She 
also thanked the Facilitator and the WTOPP Chair for their work on pension reform . She called on 
Members to continue in the same c ooperative spirit in future , adding that this could be  an example 
of how to proceed regarding  other topics.  
4.10.  Sever al other Members thanked the WTOPP Chair, the Facilitator , and the Secretary of the 
WTOPP for the outreach.  
4.11.  The Committee t ook note of the report of the Facilitator and of the comments made . 
5  2023 DRAFT WORK PLAN FOR THE COMMITTEE ON BUDGET, FINANCE AND 
ADMINISTRATION – WT/BFA/W/618  
5.1.  The Chair said, a s in previous years, the Secretariat prepared a draft work plan for the year 
for consideration by the Committee , with an overview of the topics to be presented to and discussed 
by the Committee during its meet ings in 2023.  WT/BFA/211  
 
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  5.2.  A Member thanked the Secretariat for submitting the work plan , adding that it  is a good basis 
for the Committee's work this year . He said, as Members are aware, there may be subsequent 
adjustments . The Member said his delegation support s the plan to have a discussion on the next 
biennial budget before the summer break because there is quite a lot to discuss . He said Members 
would need a complete overview of priorit ies, particularly the pension  plan and strategic orientation. 
The Member said  his delegation understand s that there are limited resources for the Secretariat, 
and at th e same time he thinks it would be a good opportunity to have the regular updates on the 
transformation exercise  transition  into increasingly broader updates on the strategic work that is 
and will be going on . He request ed that the agenda item s entitled "Update on the  Transformation 
Exercise " be changed to "S trategic Orientation Exercise Update " for 2023 and to reflect the beg inning 
of the work that the D irector -General  had announced.  
5.3.  A Member said, on the theme of reform , that the introduction of annotated  agendas, the Chair's 
initial item on the summary of work undertaken , and the work plan , have been an important  
organizational improvement  for the Committee. He said some of the small procedural things that 
the Committee  does do not get noticed enough . The Member said it is much easier  for the Committee  
to begin to engage on longer term conve rsations with some of the reforms that it  put in place . The 
Member noted that the Committee has a pretty big agenda but also a big gap between  the current 
meeting and the next one scheduled for mid-May. The Member added that a targeted format  and 
informal meetings seem to be  really  beneficial in bringing the Members together  and findin g out 
what their interests are . He said a bit more targeting on strategic planning and the t ransformation 
exercise might be helpful . 
5.4.  The Member said he w ould like to  revise hi s delegation's comments proposing  how to create a 
mandate to discuss a longer -term pension reform concept, so as not to decide on the longer -term 
reform , but to evaluate the need for  such reform . He said he would appreciate getting a better 
understanding of the research and data tools available to Members . He added that his delegation  
may come back with some questions , which can lead to questions and answers documents . He said 
the informal exchanges that Members  had on trust funds and other issues were a good example of 
how Members  can build up some information  as they talk about topics  broadly . 
5.5.  The Member said in  aligning financial resources to the  strategic goal, his delegation would like  
an understanding  of the importance of that work and how it can be target ed to the Committee 's 
work so that there is support for whatever budget is needed . He said Members are going to have to 
make difficult decisions about what their priorities are . He said his delegation  has some questions 
about whether there are strength s and weaknesses of the creation and operation by individual 
Divisions of different databases , and potential  duplication and c ost effectiveness of that approach . 
5.6.  The Member said while the flagship reports are excellent , his delegation would like to have 
better engagement with the Economic Research Division on smaller targeted research pieces that 
help Members  in their deliberations . He recounted that a colleague ha d recently, in an informal 
setting , said when the WTO makes a decision , it makes a decision most often in spite of the facts 
instead of in their support . He said this reflects the very  political nature of some of the Members'  
conversations . The Member said , especially coming after two days of General Council meetings, 
Members  have gone to the extreme end of the political spectrum . He said the organization has  
expertise and should be evaluating a lot of policy choices based on the analysis and the research 
that is out there . He said his delegation w ants to create a better partnership with the Economic 
Research Division  as Members  evaluate resources and priorities going forward . 
5.7.  The Member said IT systems and support systems that the Organization has a re expensive and 
thus the Committee  needs to circle back on output reporting . He acknowledged that a strategic 
direction  is anticipated but added that he does not know whe n that strategic direction will be 
determined . He said Members are not going to be able to evaluate the budget proposals in the way 
that they should , and thus he would like Members to begin to discuss what better tools are available  
internally  to measure and assess how their financi al resources  are allocated. He said this does not 
have to be part of the formal  CBFA work  plan. 
5.8.  The Member said it would be useful to have more frequent updates on the implementation of 
the External Auditors' Recommendations. He acknowledged that Members g et periodic reports, 
adding that they do not really have an opportunity to drill down into some of the long -standing 
issues that have not been addressed. He said this goes to  the Chair's question about whether or not 
and to what extent  the Auditor  can participate  in CBFA meetings , and he said that he would reflect WT/BFA/211  
 
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  on that question . He said it would be important to have clarity on some of the long -standing issues 
so that Members have a bit more information to consider whether or not they need to be more direct 
and explicit in the reforms that they would like to see implemented. He expressed his delegation's 
appreciation for the work plan, noting that it is changeable and adding that it has been a very helpful 
tool in organizing the Committee's work.  
5.9.  A Member  said the work plan is a very useful document for organizing work and engagement 
with her capital. She asked for clarification in terms of addressing  recommendations on the pension 
reform  and the consideration of the 2024 -2025 WTO budget. Noting th at the work plan refers to 
finalization of the recommendations on the pension reform , she asked if that means that the 
Committee is targeting a decision that would go to the July General Council. She said  the budget 
and pension reform are connected because  both potentially involve additional contributions from 
Members. She said  it would , therefore,  be important to have a clear picture of what decisions 
Members are expected to take and when.  
5.10.  A Member said it is important to start the 2024-25 budget process b efore the summer break , 
as per the work plan . He suggested it would be helpful to get a sense of the strategic orientation of 
the WTO in the next months, including some initial thoughts of the Secretariat on the 2024 -2025 
budget direction , such as where the Secretariat sees areas of continuity or growth and how it expects 
to achieve efficien cy. The Member suggested that a shorter document to launch the budget 
discussions on the level of more fundamental ideas that w ould guide the Secretariat in drafting a 
full-fledged proposal would be welcome. While acknowledging that such an undertaking wou ld not 
be easy, the Member said it might be worth trying to move in this direction because past experience 
shows that working directly off a very detailed official budget proposal can distract from the 
important longer -term perspective on fundamentals. He reiterated that it is important to take the 
first steps in considering the budget before the summer break.  
5.11.  A Member flagged that there are big financial questions at stake and expressed concern about 
the difficulty and timing of asking capitals for more mo ney only well into the second half of the year. 
He suggested some further informal options to make earlier progress on the work would be welcome . 
5.12.  A Member expressed support for the views of the previous speakers, especially for the idea 
of a pre -discussion  on what the main features of the forthcoming budget should be , and also in 
relation to the view that the budget and the pension reform must be understood and discussed 
together.  
5.13.  A Member said the work plan supports better planning and engagement. He asked  if 
adjustment s would be  possible going forward to reflect Members' developing understanding of the 
various issues on the table. He supported the idea of mechanisms to build up the Committee's 
understanding through  shorter  documents  on key items. He also s aid that , for topics with budget 
implications , more information on how the se measures are costed and how the Committee  is 
expected to make  progress on them would help facilitate  discussions with capitals and ultimately 
making  decisions . 
5.14.  The Chair said she agree s that M embers ought to  have a clear picture on what decisions they 
are being asked to take . She said it is her aim to do everything she can to help Members develop a 
clear picture. She said  it will be up to Members to decide if they are prepared to take a decision on 
the pension reform before the budget discussion start s. She added that  she would not prejudge the 
way forward. She also acknowledged that the more information available to Members the better , 
and she encouraged them to use the time in the best way possible.  
5.15.  DDG Ellard thanked the Members for their comments. She confirmed that the process of 
developing a work plan is a good discipline for the Secretariat and help s to make sure that the 
Secretariat is being responsive to the priorities of Members. She said she understands how much 
Members appreciate getting information in advance, which is why the Secretariat is targeting getting 
a budget proposal to Members before  the summer break so that that there is ample time for 
discussions given the well -understood importance of the  2024-2025 biennial budget. She reiterated 
that the financial situation of the WTO continues to remain difficult , adding that the  pressures the 
Secretariat faces are real. She acknowledged that financial difficulties are a worldwide problem , and 
that Members are facing them too. She said she n onetheless  wants to emphasize that the needs at 
the WTO have become acute , both in terms of day -to-day opera tions and making sure that the WT/BFA/211  
 
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  Secretariat has staff in place who can fulfil the requests and expectations of Members. She said the 
Secretariat 's primary mission  is to do what Members want , and to achieve th is mission,  the 
Secretariat requires the necessary tools and resources to successfully deliver.  
5.16.  Regarding the comment s some Members made on the timing of discussions , DDG Ellard said 
that the Secretariat heard loud and clear from Members over the last year about how important the 
budget discussio n is in the context of  the pension reform and how important the pension  reform  
discussion is in the context of the budget. She said, t herefore, it is important  to make sure that 
there is adequate time to consider the issues carefully . She said, for this re ason, she is appreciative 
that the Board and the Facilitator are working hard to make sure that Members have the information 
they need to make decision s on the pension reform . Recognising that it is up to the Members to 
determine  when they are prepared to  take decisions , she recalled the point made by the WTOPP  
Chair that delays in addressing the situation will be costly and only make finding a solution more 
difficult. She said, d uring the process , it will be the goal of the Secretariat to make sure that Me mbers 
have all the information they need.  
5.17.  Turning to questions from Members about having more informal processes to help Members 
prepare to address other aspects of the Committee's work plan, DDG Ellard indicated that the 
Secretariat w ould be happy to do w hat it can to meet those needs.  She recalled  the intention  to 
have a CBFA informal focus group with respect to the strategic vision, adding that  she believes this 
would be a great opportunity to address some of the questions in that context.  
5.18.  In response to  the comments in paragraph 5.6.  above  about research tools available to 
Members, DDG Ellard observed that the question relates to finding the right Committee for that type 
of discussion because in terms of the actual substance of the questions , they may be most 
appropriately addressed somewhere other than  the CBFA . She said the Secretar iat would like to 
work with Members to figure out the best ways to have those types of discussions.  
5.19.  Responding to the comment in paragraph 5.7. above about output reporting, DDG Ellard said , 
in this context , the Secretariat is committed to being accountable to Members for the work that it 
does and would be  happy to talk about how that is done. She said she believes the output reporting 
system is an effe ctive way of presenting information to Members and that the Secretariat intends to 
continue that system and to continually update  the framework . 
5.20.  In response to  the comments in paragraph s 5.10., 5.12. and 5.13.  above  suggesting that the 
Secretariat might share initial thoughts with the Committee on the 2024 -2025 budget direction, 
ahead of presenting a fully -fledged budget proposal , DDG noted the mid -term review that was 
presented to Members in 2022 was very detailed and thorough . She said the Secretariat would seek 
to find the fine line between too much and not enough  information . She added that the Secretariat 
continues to see the same needs that were laid out in the documentation provided last year  and that  
Members will most likely not be pre sented with information that is substantially different  in approach . 
5.21.  Responding to the comment  in paragraph 5.2. suggesting a shift of the focus of updates on 
the transformation process to strategy issues, DDG Ellard said her understanding is that Members 
continue to be interested in the transformation exercise, but that perhaps more strategic elements 
could be reflected in the updates , as appropriate . 
5.22.  The Member whose comments are reflected in paragraph 5.2. took the floor to say that his 
comment was inten ded to convey  his understanding that the transformation process was designed  
to evolve towards more strategic topics, and he hoped the work plan and discussions in the 
Committee could reflect that.  
5.23.  A Member said her delegation s ees the work plan as extreme ly important and very useful to 
have. She said her delegation support s the view s expressed by another Member  about output 
reporting (paragraph 5.7.), adding that it would be important to have further discussions on output 
reporting and how to improve it.  
5.24.  The Member whose comments are  reflected  in paragraph 5.7. asked for  the floor  to clarify his 
delegation 's view s on output reporting. H e said his delegation's concern is that how the five broad 
themes and the sub-themes used by the Secretariat are understood  by managers and staff  members  
has not been updated in a long time and that those themes and categories do not , from his WT/BFA/211  
 
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  delegation's perspective, align with current budget circumstances or the priorities and needs of the 
Members.  He explained that output reporting can be improved to better reflect actual outputs and 
that this will help Members with resource allocation decisions.  He said , for example, that  the output 
report ing system bundles many things under technical assistance and that not everyon e understands 
the concept in the same way , so Members and the Secretariat are not on the same page when having 
such discussions.  
5.25.  In response to the comments in paragraphs 5.7., 5.23. , and 5.24 . regarding output reporting, 
DDG Ellard clarified that there ar e eight broad categories used and that the sub -areas are regularly 
updated based on  the evolution of  activities in the Secretariat. She said she understands Members ' 
willingness  to make sure there is a common understanding of how the categories are used so  that 
the reporting is genuinely useful.  
5.26.  The Chair thanked the Committee for their thoughtful comments , noting that these  give her 
a lot to think about . She said she will work with the Secretariat on how best to proceed. She also 
took note of the suggestio n to use the time between the first and second meetings of the Committee 
effectively, but without overburdening Members with CBFA work.  
6  WTO SECRETARIAT TRANSFORMATION EXERCISE AS OF 22 FEBRUARY 2023 – 
WT/BFA/W/625  
6.1.  DDG Ellard delivered the statement contain ed in JOB/BFA/ 76, as follows:  
6.2.  I am pleased to provide you with an update on the Secretariat's transformation exercise and 
to hear your comments. As I have done before, I will provide my speaking notes to you in writing 
following this meeting. I will provid e additional updates as developments warrant, and the 
transformation work will remain on the agenda for discussion at our meetings.  
6.3.  I have been providing you with Information Notes prepared by the Transformation Office 
setting out the detailed outcomes in specific areas as these are shared with WTO staff. In February 
we distributed to you the Information Note on Risk Management.  
6.4.  As you may recall, the DG briefed Members on developments both at the TNC as well as the 
General Council.  
6.5.  Current transformation w ork continues to focus on implementing the outcomes approved by 
the Transformation Steering Committee.  
6.6.  As I reported at our last meeting, progress is most advanced for Rewards Outside Promotion, 
Procurement, and Mobility.  
6.7.  The new policy, "Recognition and Rewards Programme", entered into effect in early 2023. The 
policy creates new awards to recognize and reward staff for teamwork, innovation, and excellence 
in management, and updates an existing peer award system enabling staff to recogniz e good 
colleagues. The new policy also makes changes to the annual performance bonus award. The policy 
is a key part of ongoing work to reinforce a culture of recognition and praise in the Secretariat.  
6.8.  Our revised internal Procurement Policy also entered i nto force at the beginning of 2023. As I 
previously reported to you, the amendments to this internal policy updated our low -value purchase 
thresholds. Work is continuing in the Procurement stream to update internal manuals, templates, 
and training material s, and to increase digitization in our procurement processes.  
6.9.  Regarding mobility within the Secretariat, we are carrying out a pilot project to encourage 
short-term secondments to different divisions for entry -level staff who have joined the Secretariat 
in the last seven years. This internal temporary mobility exercise will showcase the benefits of 
mobility for individuals and the Secretariat as a whole. In addition to this exercise, work continues 
on revising our internal and external mobility policies.  
6.10.  The work on Risk Management has also progressed. A small group of staff volunteers has 
worked with the Transformation Office and the Office of Internal Oversight and our Human Resources 
Division to define the responsibilities and functions for the position o f a senior risk officer. We will WT/BFA/211  
 
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  soon be launching a recruitment campaign for that position. An initial review of the Secretariat's 
existing risk management policy and previous practices has been conducted. Recommendations have 
been made on potential impro vements to the overall risk management processes, elaboration of a 
modern risk taxonomy, and risk appetite statement. This work will be taken forward once the new 
risk officer is onboarded.  
6.11.  We continue to work on promotions and recruitment policies, recogn ising existing budgetary 
constraints.  
6.12.  The focus of our digital transformation continues to be on the costing and prioritisation of use 
cases. We are also considering how the improvements we want to make fit alongside other initiatives 
already being rolled out and Member expectations and interests. We are developing an internal 
governance structure to ensure coordinated oversight, taking account of the very limited budget 
available for the remainder of our biennial period.  
6.13.  Lastly, as announced by the Director -General at the TNC meeting on 28 February and the 
General Council meeting earlier this week, we will soon begin work on developing a vision and an 
overarching strategy/mission statement for the Secretariat. The Transformation Office will lead this  
process. The views of Members will be a significant part of this work, and Ambassador Dacio Castillo 
(Honduras) has kindly agreed to help us in gathering your input. We will be organising focus groups 
and consultations so that Members can provide us with their views.  
6.14.  As the DG also announced on Monday, the Secretariat will soon share with you a document 
providing more details on what we have in mind and our near -term plans. With your help, we are 
aiming to shape a high -level vision and strategy for the Sec retariat relatively quickly. This will be an 
important first step, but there will be much more work to follow. As Members of this Committee 
have said on many occasions, our Secretariat processes, including planning, budgeting, and 
resourcing, need to be an imated by and aligned with clear strategic goals. The work that we are 
about to launch will start to respond to what the CBFA has been requesting for many years. We look 
forward to your constructive engagement with Ambassador Castillo and our Transformatio n Office.  
6.15.  Thank you for your continuing interest in and support for our transformation work . I now 
invite any comments or questions that you would like to share.  
6.16.  DDG Ellard also provided a brief update on the status of Director recruitments. She indicated 
that Ms Alison Holmes and Mr. Ismail a Dieng  were recruited  as Directors of the Human Resources 
and the Information and External Relations Divisions , respectively, and that they both joined the 
Secretariat in early January. She report ed that they are alread y actively and meaningfully 
contributing to the work of the Organization, including in areas that are of importance to the CBFA. 
DDG Ellard further noted that the recruitment process for the Director of  the Development  Division  
position had not yet started . She added that a new Director vacancy  has opened in the Legal Affairs 
Division as a result of the departure of John Adank , noting that it had been advertised internally and 
that the selection process for that position is currently underway.  
6.17.  A Member thanked DDG  Ellard  for the update , saying he found it very helpful. He said 
Ambassadors have a very deep interest in the status of these on -going refor ms, and the opportunity 
to engage directly with the Director -General in the CTNC in a way that Members find both helpful 
and refreshing  is appreciated. He expressed concern that the agendas of those meetings do not 
reflect the substance being presented , which makes it difficult for delegates  to prepare their 
Ambassadors for these discussions. He indi cated he would also raise this point with the Director of 
the CTNC Division. He added that, in his view,  specific agenda items and supporting documentation 
would, in addition to helping delegations prepare, help to highlight some significant steps that hav e 
been made in terms of showing progress on these important issues.  
6.18.  Pivoting to another issue of interest to his delegation, the Member said he wanted to take 
advantage of the presence of the Director of the Human Resources Division at the meeting to ask 
about WTO efforts to incorporate disability issues and disability inclusion in the Organization and if 
these fall under the tr ansformation process.  He said  a consistent and systematic approach to 
disability inclusion in all areas of operations and coherence  with broader UN system norms is 
important.  WT/BFA/211  
 
- 11 - 
 
  6.19.  The Member asked  what formal mechanisms are in place for staff mobility. He said he had  
heard that structures at the divisional level  and WTO policies  can restrict opportunity for mobility in 
the sense that it is not easy for posts to be reallocated within the Secretariat based on changing 
priorities. He acknowledged that structural allocation  targets  were put in place as part of addressing 
the inverted  pyramid concerns and  noted that the Organization should not be stuck with that 
structure indefinitely.  
6.20.  The Member said his delegation would like to see more Member engagement in the data , 
technology , and innovation area . He said gi ven the scarcity of reso urces , and the cost involved , 
technology is an important aspect of the Organization , and Members need to make sure they are 
investing in it. He expressed  concern about  the decentraliz ation approach where Divisions can 
apparently create initiatives on their  own without regard to long -term financial implications or overall 
efficiency. He said w hile there may be good ideas, those ideas  may not be better than other ideas . 
He said in a context of scarce resources , he is not sure if the decentralized  approach is sustainable.  
6.21.  The Member expressed the view that Members should be more engaged on decisions to 
establish external partnerships that could create financial liabilities for the Organizatio n. He said,  
from his perspective , there is a lack of clarity and transparency on how these partnerships are 
undertaken.  
6.22.  He said if reference to creating a stronger culture of innovation means less interaction with 
Members , it would be good to know what the financial constraints imposed by  this innovation will 
be, as Members ultimately pay the bills. He said  Members and the Secretariat need a deeper 
conversation , as Members will have a number of financial discussions this year.  
6.23.  The Member said it will be important that Members are engaged a nd get a sense from the 
Director -General and others in the Secretariat as to what the basic values are so that Members and 
the Secretariat can come to an understanding and move forward. He said that Members need to be 
part of the conversation with the Dire ctor-General about making the Organization fit for purpose.  
6.24.  A Member reiterated his delegation's interest in the transformation topics and re -emphasize d 
the importance of transitioning into the strategic parts of the exercise. He said while  he understands 
that t hings sometimes take longer than expected, it would be useful to be updated on where things 
are currently and how the Secretariat will deliver in this area with its existing resources. He said he 
does not see a way to advance on the budget without starting the strategic discussions and having 
a more complete picture of where the Secretariat is headed.  He said  if this is not what the Secretariat 
has in mind on account of resource capacity issues , he believes Members need to know that now so 
that less resource intensive approaches to the problem can be found.  
6.25.  A Member thanked the Secretariat for the very informative document. She said the 
Organization is moving in the right direction. Regarding the mobility exercise and reference in the 
documen t to provisions for staff to have mobility in the first few years  of service , the Member asked 
which measures are provided for supporting the mobility of staff who are more senior in the 
Organization.  
6.26.  A Member  said the transformation process requires Membe r engagement . She said  while she 
appreciates that each CBFA meeting includes a briefing on recent developments, she is not sure if 
Members ' questions about long -standing issues are being addressed adequately through the 
transformation exercise. She noted t hat in the first wave , a lot of work was done on staff -related 
issues, but issues such as concerns over short -term staffing have not been addressed. She requested 
that Members be provided with a better understanding of how th e transformation exercise would  
improve the previously identified Member concerns. The Member also mentioned the third wave on 
data and IT issues as being an area where there have been big increases in the budget  allocation . 
She said her delegation believes Members need to be included m ore directly in discussions around 
the deployment of technology to better support the purposes of the Organization.  
6.27.  DDG Ellard thanked Members for their interest in the transformation exercise. She said that 
considerable time is spent on these issues, and at all levels , within the Secretariat. She said it is 
gratifying to see the contributions and suggestions that Members are making, noting that the 
Secretariat takes them to heart. She said the goal of the Secretariat is to serve Members, and that 
making it fit for purpose is its ultimate goal. WT/BFA/211  
 
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  6.28.  In response to the comments in paragraph 6.17. regarding the usefulness of the CTNC as a 
vehicle fo r engagement , DDG Ellard said the Director -General has raised th e issue of transformation 
issue at nearly every CTNC and GC meeting to update Members. DDG Ellard said she does not think 
that the Director -General is necessarily expecting a discussion o n the transformation exercise at 
those meeting s, and added that this would of course, be up to Members. She said the DG's goal at 
the CTNC is to highlight to Ambassadors that delegates are having these discussions at the CBFA , 
which is the  ideal forum for havin g more detailed discussions.  
6.29.  DDG Ellard said there were several suggestions about showing success snapshots . She said  
she very much wants to showcase the success of transformation. She said the Secretariat will think 
of ways to do this in the context of th e documents that it provides. She said in the course of the last 
year, the document on the transformation exercise update went from one page to four  pages as the 
Secretariat filled in details  regarding developments . She said the Secretariat will also consider how 
to show where it has been successful.  
6.30.  In response to the comments in paragraph 6.24. regarding the timeline, DDG Ellard reassure d 
Members  that the Secretariat is  on time in when it has launched work on each of these issues . She 
said there is a one workstream for which the Secretariat had not set a specific timeline -- the actual 
implementation  of the changes . She said the Secretariat has  finished the initial diagnostic  and 
identified  some workstreams  to undertake to implement the outc omes . She noted that this work can 
be unpredictable as to timing because the Secretariat must determine how to implement , what 
changes  need to be made  to internal policies , and what has to go through the J oint Advisory 
Committee . 
6.31.  In response to the comment s in paragraphs 6.19. and 6.25. regarding mobility , DDG Ellard 
said the Secretariat  is focused on the entry -level grades as part of its pilot project on mobility.  She 
said with respect to more junior staff who have been at the Secretariat for fewer than se ven years, 
there is a specific contractual provision that they undertake mobility. She said the distinction is that 
such a requirement does not exist in the contracts of more senior staff. She said this does not 
preclud e other mobility . She said she agree s that mobility is needed at all levels , adding that the 
Secretariat encourages this at all levels. DDG Ellard added that there is  a recent example of a very 
senior staff member who is undertaking  external mobility . 
6.32.  In response to the comments at paragraph 6.19. regarding difficulty in reallocating positions , 
DDG Ellard recalled that the divisional structure was a result of a mandate that Members gave the 
Secretariat  in terms of keeping the staff ceiling at 64 5.5 posts, in addition to reversing the inverted 
pyramid . She said the previous  administration made decisions as to how to implement these policies.  
She said there is additional work  must be done to make sure that positions within Divisions are still 
based on a particular need . 
6.33.   In response to comments in paragraphs 6.20. and 6.26. regarding data and I T, DDG Ellard 
said that since 2012 , the Secretariat  has had to update its technology  and also move into virtual 
and hybrid workstreams  as a result of the pandemic. S he noted that this was accomplished within 
the same zero nominal growth budget level . 
6.34.  DDG Ellard said  that, going forward, the Secretariat wants to make sure that its IT efforts are 
meeting the needs of Members and the  Secretariat . She said the Secretariat will continue to engage 
with Members. She recalled that there had been  a session with Members in 2022  to get their input 
as well as CBFA discussions on topics such as D ocuments Online. DDG  Ellard said the Secretariat 
will continue to work with Members  to make sure that it is meeting their needs.  
6.35.  Regarding the strategy questions and the related budget management, DDG Ellard said that 
budget constraints made it difficult to begin  a full-fledged strategic exercise . She said the strategic 
exercise is , therefore,  being done in chunks. She said the goal is to have a strategic roadmap to 
deploy staff, IT, and workstream s more effectively.  
6.36.  In response to the  questions in paragraph 6.18. about the Se cretariat's efforts to i ncorporate  
disability  issues in the Organization , DDG Ellard said that this was not specifically within  the mandate 
of the transformation exercise. She noted that the Secretariat could  provide Members with more 
information about its compliance with these norms and efforts to support  staff with disability . WT/BFA/211  
 
- 13 - 
 
  6.37.  In response to the comments in paragraph 6.26. regarding how the transformation relates to 
the issues of short-term staff , DDG Ellard said the use of short -term staff is not specifically within  
the scope of  the transformation exercise . She said, however, that a full-fledged effort has been 
established under which the DDGs meet periodic ally to evaluate requests for short-term staff to 
make sure that the use of short -term contra cts is authorized only where necessary . 
6.38.  In response to the comments in paragraph 6.21. regarding external partnerships , DDG Ellard 
said this  is an area covered by the  transformation  exercise , particularly when it comes to mobility . 
She said the Secretariat  is currently working on memorand a of understanding to address these 
partnerships . 
6.39.  A Member clarif ied that her delegation  would like the Secretariat to engage M embers to 
address longstanding issues and includ e the path to show how efforts in the transforma tion exercise 
could address  such issues and the problems.  
6.40.  A Member thanked DDG Ellard for her comprehensive response. The Member added that the 
remarks that he had made regarding statements on the transformation exercise during CTNC 
meetings were  only suggestions for efficiency, and not a concern. The Member  said that it would be 
helpful to have a more detailed conversation on this topic.  
6.41.  With reg ard to  mobility, the Member said that it might be better to have a deeper conversation 
on this as his delegation is  wondering  if there are any impediments in place to move staff members 
based on need. The Member said there might be some inconsistency regar ding external mobility as, 
on the one hand, there is a request from the  Secretariat to increase staff  and, o n the other hand, 
the Secretariat might send staff to other organizations. He said m obility might not be the problem , 
and that the problem  might  rather be the rigid structure of the Secretariat. He said k eeping the 
same number of staff forever is not part of the mandate  given to the Secretariat.  He said there are 
some real staff misalignments in terms of staff structure that ought to be addressed. He said if the 
Secretariat is going to ask  to increase staffing overall, Member s ought  to be reassured that no staff 
member  would remain underutilized.  
6.42.  DDG Ellard thanked  the Members for the clarifications and stated that all remarks were duly 
noted. She said that the objective of external mobility  is not only to  deploy WTO  staff to other 
organizations,  but also to receive staff from other organizations. She said t hese opportunities would 
be limited to one or two years, bringing added value to the Secretariat.  
6.43.  In response to  the comments in paragraph 6.4 1. about staff misalignment, DDG Ellard agreed 
that staff needs to be deployed to areas where there is the most n eed. She noted that part o f the 
problem for mobility is related to technical skills that are not easily interchangeable. In terms of 
structure, DDG  Ellard  said that the previous administration had designed a particular approach and  
added that the work the Secretariat is currently doing is to determine whether that approach is still 
valid. 
6.44.  The Chair thanked Members and DDG  Ellard  for their intervention s and proposed that the 
Committee take note of the comments.  
7  PERFORMANCE AUDIT REPORT OF THE INDEPENDENT EXTERNAL AUDITOR ON THE 
GOVER NANCE AND MANAGEMENT OF EXTRA -BUDGETARY TRUST FUNDS – 
WT/BFA/W/622  
7.1.  The Chair invited the Auditor  to introduce the Audit Report . 
7.2.   The Auditor  informed the Committee that following a request made by a Member , the Auditor s 
accepted to make two semantic clarifications on their  report and that a new version would be 
provided after the meeting.  
7.3.  The Auditor delivered the statement contained in JOB/BFA/77, as follows:  
7.4.  I am pleased to present to you today, on behalf of Mr  Moscovic i, First President of the Cour 
des comptes (French Court of Auditors), the outcome of the performance audit conducted in 2022 
on WTO trust funds. We undertake our external audit activities pursuant to the General Council WT/BFA/211  
 
- 14 - 
 
  decision of 10  December  2019 and in  a framework set out in an engagement letter signed by the 
Cour des comptes  and the Organization.  
7.5.  I have the honour of appearing before your Committee for the first time since I succeed 
Mr Metzger as Director of the External Audit of the WTO in January  2023. The findings that I will 
present to you are the result of an audit conducted by Mr  Metzger and his team, Mr  Champomier, 
Mr de Pontbriand and Mr  Chichereau, whom I thank for the work carried out. I hope to be able to 
present their conclusions to you fait hfully.  
7.6.  As you know, trust funds collect voluntary contributions from WTO Members wishing to finance 
specific programmes of action. Much is at stake. The voluntary contributions, which are channelled 
into the trust funds, provide additional resources equiv alent to roughly 10% of the WTO's regular 
budget. As at 31  December  2021, trust funds had a positive balance of CHF  41 million.  
7.7.  Your Committee has drawn a number of conclusions from the work of the Working Group 
mandated to analyse the management of these trust funds  (the Working Group) . At your meeting 
of 5 May 2022, you identified a number of approaches that must guide the Secretariat's action.  The 
aim is to ensure the consistency of actions carried out through these trust funds, including in relation 
to the strategic objectives pursued by the WTO; to prevent the proliferation of funds in order to keep 
control over them; to limit the impact of the management of these trust funds on the regular budget; 
and lastly to ensure the real value added of these  trust funds.  
7.8.  We make recommendations in our report that tie in with those of the CBFA. They cover three 
areas: the consistency of the trust funds with the objectives of the WTO; the financial control of 
these trust funds; the follow -up of their results.  
7.9.  With respect to the first key area audited, the consistency of trust funds, Regulation 19 of the 
Financial Regulations provides that voluntary contributions from Members and Observers may be 
accepted by the Director -General provided that they are consisten t with the policies, aims and 
activities of the WTO.  In 2019, the Director -General adopted guidelines1 to provide more information 
to Members when creating trust funds and for as long as the trust funds are operational.2 These 
rules have improved transparency towards Members.  However, the assessment of the trust funds' 
compatibility with the Organization' s objectives may involve a certain amount of subjectivity.  
7.10.  Beyond the general principle laid down in the Financial  Regulations, the rules governing the 
use of these funds have not been sufficiently defined in an official reference document. The trust 
funds  thus contribute to the overall objective of the WTO to provide technical assistance, the purpose 
of which is to build sustainable trade capacities in beneficiary Members . However, this contribution 
takes various forms that meet, to differing degrees, the goal of having a sustainable impact: 
long-term internships in Geneva ; seminars and workshops ; subsidies for trade -related intellectual 
projects ; but also ad hoc material support to allow certain Members  to participate in multilateral 
meetings etc. Against this backdrop, we share the view of the ad hoc Working Group that the WTO 
would benefit from refocusing the funds' activity and avoiding a fragmented approach. 
Administrative guidelines should, in particular, specify the criteria for accepting a new trust fund and 
the arrangements for the joint programming of existing trust funds. Similarly, we support the 
Working Group's proposals for joint programming and a more centralized management of trust funds 
to limit the proliferation of ad hoc interventions.  
7.11.  Above all, we consider it necessary to implement the Working Group's proposal to create a 
steering body that, having all the necessary information, would be responsible for the real -time 
internal control of the  trust funds and would provide a response in terms  of governance to the 
difficulties linked to the ambiguities of the trust funds' approval and contract procedures, and the 
fragmentation of the management of trust funds (Recommendation No.  2). We consider this 
 
1 WT/INF/219.  
2 In particular, for transparency purposes, Members must now be notified not only of actual proposals for 
the creation of a trust fund but also pledges for the future establishment of a trust fund. Furthermore, in 
considering a proffered voluntary contributi on, the Director -General must seek the advice of the Administration 
and General  Services Division, and then submit that advice to the CBFA so that any Member so inclined may 
express its views. Once the trust fund has been established, the Secretariat must provide Members with detailed 
information specifying the objectives of the trust fund, its implementation strategy, and the implementation 
partners identified.  WT/BFA/211  
 
- 15 - 
 
  recommendation to be all the more necessary n ow, given that a consequence of the dispersion of 
the trust funds management among various Secretariat divisions is that there is no single document 
or report covering this mandate as a whole to inform the decisions of the governing bodies. Members, 
and th e public, are thus deprived of comprehensive and coherent information on the conduct of the 
technical assistance mandate entrusted to the WTO in 2001 (Recommendation No.  4). 
7.12.  The second key area covered by the observations in our report is financial control  of trust 
funds, whether in terms of the funding they attract or the costs incurred by their management.  We 
have noted that the financial resources put towards the trust funds' objectives consistently exceed 
the needs of the  trust funds' annual activity. T he balance available at the end of the year, which 
represents a debt owed by the WTO to the contributing Members , since  the unused funds must be 
repaid to donors upon closure of the fund, is on average around CHF  35 million. This balance 
represents an over all cash surplus equivalent to more than two years of activity.3 The increase seen 
in 2020 and 2021 in the balances available at the end of the accounting year was circumstantial and 
resulted from the pandemic having led to a decline in the number of peop le trained by technical 
assistance programmes, in addition to increased use of cheaper means of communication and 
distance training, without any proportional reduction in voluntary contributions. As a result, the trust 
funds' financial capacity, as well as  WTO liabilities, increased overall by CHF  6 million between 2019 
and 2021, rising from CHF  35 million to CHF  41 million.  In our view, the system could be rationalized 
and the cash flow reduced to an amount better suited to the  trust funds' activity, which  does not 
require such a large precautionary reserve. Furthermore, the principles and conditions for managing 
the liquidity of the trust funds should be outlined in clearly written texts. Decisions regarding unused 
funds are actually made by the donors, wh o may or may not ask for such funds to be repaid to them, 
which is a weakness.  
7.13.  Cost transparency is another aspect covered by our observations on the financial control of 
trust funds. To offset the costs incurred by the WTO for the management of these trust funds, the 
Financial  Regulations provide that an overhead fee may be charged on the trust funds' resources, in 
the form of a fixed percentage of up to 13% applied on recorded expenditure. This fixed fee is 
transferred to the Programme Support Fund (PSF),  which pays expenditure incurred under the WTO 
regular budget to support the trust funds' activities. The financial resources paid into the PSF, unlike 
those paid into operational trust funds, belong definitively to the WTO. The Organization may, in 
princi ple, freely use the amount to finance the costs generated by another trust fund because the 
various fees are fungible. We have noted that the WTO does not keep records that compare, for 
each trust fund, the fee and the expenditure that this fee is supposed  to cover. As a result, it is 
impossible to verify whether the total of the fixed fees covers the expenditure actually incurred by 
the WTO for the management of trust funds.  
7.14.  Also linked to cost transparency are the staff costs recognized as direct trust fu nd expenditure . 
These should correspond to the costs of the specialist personnel assigned to implement trust fund 
projects. Such individuals are recruited under so -called "L" contracts . In principle, they are not 
included as permanent staff funded by the WTO regular budget and therefore are not subject to the 
regular budget's employment cap. The administrative and financial staff who provide support 
services for trust fund activities and who are also recruited under L contracts, are funded by the 
resou rces of the Programme Support Fund financed by the 13% fixed fee. We have noted, however, 
that more than half of the staff involved in trust fund management did not hold an L contract, but a 
regular contract financed by the WTO regular budget. This finding  reveals that staff costs are not 
fully recorded in trust fund financial statements.  To address these challenges, we have 
recommended the introduction of cost accounting for trust funds so as to ensure a clear and 
comprehensive understanding of the full co sts of each trust fund. (Recommendation  No. 6). 
7.15.  The third key area covered by our report is trust fund performance assessment. While the 
effectiveness of fund management is, in general, measured well by the WTO, our audit has revealed 
that trust fund effic iency, i.e. the relationship between the outputs delivered and the resources 
employed, could be measured in a better way. The limitations of the information system prevent 
access to the information required to efficiently guide trust fund management. This shortcoming 
applies, for example, to the retrospective analysis of developments by category of expenditure and 
revenue for each trust fund. The WTO should use its accounting and financial databases to gain a 
 
3 It amounted to 2.7 years of activity in 2021 (balance of CHF 41 million including administrati ve funds  / 
expenditure of CHF 14.8 million).  WT/BFA/211  
 
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  clear understanding of the full costs of each tr ust fund, including all the costs borne by the regular 
budget.  
7.16.  We consider the information provided to the CBFA on the activity of the trust funds to be 
satisfactory. We note, however, that the quarterly trust fund reports provide no information on the 
management of administrative funds, most notably the Programme Support Fund. Furthermore, 
while the information provided in these documents is of good quality, we note, from the records we 
have seen, that plenary discussions on trust funds remain limited. We believe – and this will be my 
concluding observation – that the information to be provided to the CBFA should be further 
developed so as to provide all Members with a basis for discussion. This is why we have 
recommended that the quarterly and annual monit oring reports submitted to the CBFA 
systematically include a statement of income and expenditure shown against budget estimates4 
(Recommendation No.  3). 
7.17.  Chair, ladies and gentlemen, thank you for your kind attention. I remain at your disposal to 
answer an y questions that you may have.  
7.18.  The Auditor said that, as a courtesy, he has submitted to the Secretariat an amended version 
of his intervention in paras. 7.4 -7.17 above, with the reservation that the only authentic text is the 
report signed by the First Pr esident. All questions must therefore be raised on the basis of the report, 
rather than on the basis of the intervention of 9 March.  
7.19.  A Member thanked the Auditor  and the Chair and asked the Secretariat to distribute , if 
possible , the statement of the Audit or. 
7.20.  A Member commented that the Audit Report is aligned with the areas that were discussed by 
the Working Group on trust funds. The Member expressed appreciat ion for  the critical analysis of 
how the Secretariat supports the trust funds, and he said that Me mbers should ensure that financing 
of work of the Secretariat under the trust funds shall remain on the shoulders of the donors. The 
Member stated that work undertaken through trust funds provides a lot of added value to the 
Secretariat. As an example, he referred to the Netherlands Training Program,  as part of which  
trainees work for a year for the Secretariat, providing added value.  
7.21.  The Member expressed appreciation for the audit findings concerning how the regular budget 
is in support of trust funds and vice versa. He pointed out that Members have already agreed on the 
language in the Financial Regulations , and that the size of the Organization and the trust funds are 
relatively small  and so Members can be a bit relaxed on the line between the regular budget and 
trust funds . 
7.22.  The Member then referred to the biennial technical assistance plan, saying that it is crucial to 
identify areas where the WTO is already providing support. He said , perhaps , there could also be a 
mechanism to better define the needs of developing economies. In his view,  in this way  donors could 
decide to what extent they would like to step in to support those needs. The Mem ber stated that 
voluntary contributions are  demand -driven processes and that such support ought to  be aligned with 
the needs of developing economies, particularly LDCs. He welcom ed suggestions to improve the 
functioning and the impact of trust funds.  
7.23.  A Member said although the WTO is not a developm ent assistance Organization , it has an 
obligation to provide  technical assistance and capacity building to enable Members to implement the 
commitments made through the WTO A greements. He added that the WTO also has a  duty to assist 
Members in being able to  take advantage of the rights enshrined in  the WTO Agreements. He said 
the mission of the WTO is achieved both through its regular budget as well as trust funds.  
7.24.  The Member said that the recommendations need to be looked at more carefully  and 
acknowledged that the Secretariat had given positive responses to the recommendations.  He asked 
for clarification o f the TFAF recommendation that , on one hand, suggests incorporating the assets 
 
4 For each financial period, the Director -General is required to submit to the CBFA a budget proposal 
containing estimates of the income and expenditure of the WTO, together with the comparable figures for the 
previous period. Despite having reviewed the minutes of CBFA meetings, we cannot be sure that these budgetary 
provisions have been properly observed for all trust funds, particularly those that are not covered by the technical 
assistance plan.  WT/BFA/211  
 
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  into the regular budget  because they are not used much,  and, on the other hand, opens the 
possibility of calling for additional contributions if needed.  
7.25.  Commenting  on the statement made by the Auditor  in paragraph 7.12. relating  to the  average  
balance of CHF 35 million for trust funds , the Member said  that such balan ce could indeed cover  one 
or two years of the activities of , for example,  the Fisheries Fund . He said a global view through a 
steering committee would certainly be useful. He said this needs to be thought through carefully 
after the complex work done by the Working Group.  
7.26.  A Member thanked the Auditor for the report . She asked about the alignment of the  Audit 
Report with the report of the Working Group  on Trust Funds . She asked  whether  the External 
Auditors had taken into account the general principles included in the summary report of the Working 
Group. She said t hese include that trust fund colleagues work together with those under the regular 
budget to help the Members who needed capacity building , as a duty of the WTO. She added that 
when regulations to improve the management of the trust funds are developed , these principles 
ought to  be respected. The Member asked whether the External A uditors recognized that Members 
had reached a common understan ding to help the Secretariat develop budget and management 
procedures on this issue and if those outcomes had been taken into account in their report, as well 
as the consensus on Financial Regulation 19, which had just been revised  and which relate s to direct 
costs and staff under the  regular budget. She said it is important to align the recommendations from 
the Audit Re port with the outcome of the report of the Working Group.  
7.27.  Referring paragraph 65 of the Audit Report, relating to the liquidity of trust funds, the Member 
expressed difficulty in understand ing the External A uditors ' suggestions  as Members are dependent 
on their own governments and internal procedures in mak ing contributions. She asked for further 
explanation  regarding paragraph 75  of the Audit Report , adding that  the discussions in the CBFA 
seemed very helpful to her. Regarding paragraph 87  of the Audit Report , the Member said the 
suggestion to present a full picture of technical assistance provided  is very helpful.  
7.28.   Referring to paragr aph 88  of the Audit Report  the Member asked what the rationale is for 
having a technical assistance report together with the OECD. She suggested having such a report 
with the ITC. She added that technical assistance is part of the core activities of trade facilitation , 
and that without contributions to the TFAF the Organi zation would not be able to deliver capacity 
building to LDCs. She said her delegation, therefore, does not have strong concerns that part of the 
work in this regard is done by staff under  the regular budget. She added that a consensus had been 
reached during the discussions on Financial Regulation 19. She also asked why Recommendation 5 
is focussed only on the TFAF and not on  the STDF.  
7.29.  A Member noted the importance of the issue raised by th e External Auditors in paragraphs 38 
and 39 of the Audit Report and added that it seems fairly significant that the rules governing the 
use of these funds had not been sufficiently defined in an official reference document. He said 
Members should work on t hat. The Member said there are a number of excellent suggestions in 
paragraphs 50 and 53  of the Audit Report  and asked whether a flat fee would be the best way to 
determine the programme support costs , or whether an evaluation of the administrative cost sh ould 
be conducted. He asked how the External Auditors arrived at the conclusion for Recommendation 5, 
as this seems to reward improper behaviour and breaking of the rules. He expressed concern that 
this would create a precedent for the Fisheries Fund.  
7.30.  With respect to the comment made by another Member at paragraph 7.27 ., the Member said 
that Members should reflect on whether o r not the institution has the capacity to run grant 
operations. He said just because STDF is successful , it does not mean that the Organi zation can do 
the same with other trust funds. He stressed that a cost structure needs to be put in place to ensure 
that costs are accurately projected and accounted for.  
7.31.  A Member mentioned that the Audit Report highlighted the need for concerted act ion on 
financial control, transparency , and better management evaluation , and said his delegation is very 
keen to know the Secretariat's responses on that matter . 
7.32.  DDG Ellard said the Secretariat is eager to discuss the recommendations of the Working 
Group, but that the Working Group had finished its work just before MC12 and then the External WT/BFA/211  
 
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  Auditor began its audit. She noted that the Secretariat then waited for the Audit Report before taking 
up this work. 
7.33.  As the Auditor  had to leave, the Chair informed the Committee that the meeting would 
continue in the following week to discuss agenda items E ( Report of the Independent External Auditor 
on the Performance Audit  on Governance and Management of Extra -budgetary Trust Funds ) 
and F (Secretariat's Responses to the Report of the Independent External Auditor on the 
Performance Audit  on Governance and Management of Extra -budgetary Trust Funds).  She asked 
Members who had not had the opportunity to take the floor to send their questions to the Secretariat.  
7.34.  The Committee meeting resumed on 16 March 2023.  The remaining items discussed on 
9 March 2023 are included after the discussion on trust funds.  
7.35.  The Chair said a communication  had been  circulated to Members regarding the resump tion of 
the meeting to discuss agenda item s E and F . She then welcomed the Auditor  back. She asked 
Members if they had any additional questions to pose regarding the Audit Report or the statement 
that the Auditor had delivered during the  meeting  on 9 March . She said the statement was  circulated 
to delegations through  document JOB/BFA/77.  
7.36.  A Member thanked the Chair and the Auditor  for the additional opportunity  provided to discuss 
the Audit R eport . The Member asked for clarification of the legal status of the report. She asked 
what the role of Members is in such a process . She said in a previous meeting there had been 
different views on some past recommendations.  The Member  also asked why, in the report, Members 
who make contributions are called donors instead of contributing members. She said that in the UN 
system , the term donors has a very specific meaning  and is used , for example, when at least 0. 7% 
of the GDP  of a country  is given as a contribution to developing countries.  
7.37.  A Member asked whether all questions submitted in writing would be addressed or if he ought 
to repeat the ones he had sent orally. He expressed appreciation for the acknowledgment of the 
work that had been done by the Working Group an d asked if the Secretariat could update  the 
Committee  on the status of preparing the documents suggested by the Working Group . 
7.38.  The Auditor  responded to questions that had been received in writing as well as those that 
had been posed by some delegations dur ing the meeting on 9  March.  Paragraphs 7. 38. to 7.76. 
below are responses given by the Auditor . These should be read in conjunction with the questions  
in Annex 1, attached  herewith : 
7.39.  The United States  in its first question,  like India in its fourth  question, which appears as 
question 16 in my intervention today, firstly asked us why we did not go further when formulating 
practical recommendations, particularly regarding the rules that we recommend be clarified 
(paragraph 39  of the Audit Report ). I will reply to both countries at the same time. First of all, I 
should clarify that while we can, of course, confirm that the creation and existence of trust funds 
must be consistent with the international nature of the WTO and its c ollective strategy (paragraph  39 
of the Audit Report ), we have not noted any situations that would clearly challenge this principle 
among the audited trust funds . This does not preclude us from taking the view that the set of rules 
governing these funds wo uld benefit from being clarified, in particular with regard to forms of 
technical assistance (paragraph 42  of the Audit Report ), the division of fund management 
responsibilities (paragraph 43  of the Audit Report ) and the criteria for accepting these funds 
(paragraph 45  of the Audit Report ). However, it is not for the external auditors to detail the practical 
tools needed to do this, since we must take care not to replace the Secretariat, or even the Members, 
in managing the Organization. We have noted (para graph 24  of the Audit Report ) that the Working 
Group requests the WTO Secretariat to "immediately commence the process to develop the 
necessary policies and guidelines" (paragraph 5.2  of the Audit Report ). 
7.40.  In question 2, the United States asked if we could  provide examples of global best practices 
as regards fund acceptance procedures, with a view to fostering transparency. The measures taken 
in 2019 helped to clarify the conditions to be met to establish a new trust fund . It is, however, 
difficult for the External Auditors of an organization to make comparisons with other organizations, 
as each Organization has its own modus operandi and specific rules, and because the work of the 
External Auditors is guided by respect for the principle of confidentiality. That said, the External 
Auditor, like the Working Group, confirms that in a context where there are several different funds, WT/BFA/211  
 
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  the centralized management of information on these funds and coh erent information provided by 
the funds (which allow for an overview) are good practices.  
7.41.  With regard to question 3  of the United States  on the fee rate and the suitability of the flat 
rate system, I  should clarify that Recommendation No. 6 does not specif ically address the issue of 
the 13% fixed fee applied to finance the Programme Support Fund but refers more generally to cost 
accounting. That said, in response to the question, as discussed in question 1, it is always delicate 
to make international compar isons, given the context specific to each organization (e.g.  the rate of 
the fee charged on voluntary contributions  for the administrative budget of the World Food 
Programme is 6.5% (this is publicly available data), but the mechanisms are not strictly com parable, 
nor the amounts involved). What is certain is that the positions I have held in other international 
organizations have led me to conclude that indeed, there is in some organizations a certain 
modulation of the rates of fees on contributions  to tru st funds, with different tranches. Studies of 
alternative scenarios concerning the fee rates were not within the remit established by the team, 
especially since, as you are aware, the External Auditor was allocated a very limited number of 
review days. It would be up to your Organization to carry out such a study if you wanted one. That 
said, I believe that the introduction of the cost accounting we recommend in Recommendation No. 
6 would be the first step to take. It would allow for informed arbitration by  providing an 
understanding of the full costs attached to each fund.  
7.42.  The United States has  asked us , in Question 4,  to clarify the objective of Recommendation 
No. 4. This question was also posed by India in its question 8. I will therefore address both que stions 
jointly. I confirm the interpretation put forward by the United States. This recommendation is 
consistent with the observation made in paragraphs 43 and 46  and reiterated in paragraph 86  of the 
Audit Report , concerning the dispersion of trust fund m anagement among various services. The 
consequence of this is that there is no programmatic document covering technical assistance as a 
whole. Furthermore, reports on technical assistance are not compiled into a single document, which 
deprives the WTO of co mprehensive and coherent information on the implementation of the strategic 
technical assistance mandate entrusted to the WTO.  
7.43.  The United States has asked us , in Question 5,  to explain Recommendation No. 5, which is to 
reincorporate the TFAF  fund into the regular budget. This request was also made by Germany , India, 
the Netherlands, Norway and China. I will provide a common response. First, I would like to say that 
this recommendation is based on a general consideration - that staff costs are not fully reco rded in 
trust fund financial statements, as more than half of the staff members involved in fund management 
are financed by the regular budget. That said, I acknowledge that the more specific issue of the 
conclusions to be drawn for the TFAF in particular could be discussed. Our point here was not to 
propose that the regular budget absorb additional trust fund  expenses. What we want to say is that, 
at least for technical assistance based on a comprehensive Agreement (TFA), it would be possible to 
address th e issue of cost transparency by reincorporating TFAF activities into the regular budget, 
since, ever since the Doha Agreement, this has been a specific mission integral to the WTO. However, 
I do not wish to enter into a discussion that goes beyond the prer ogatives of the External Auditor. I 
recall that it falls to Members not only to accept the recommendations, but also to reject them if 
they believe that any of them are questionable. You are aware of the principle: the External Auditor 
proposes, the member ship disposes , and the Secretariat executes.  
7.44.  With regard to question 6 from the United States, a cost accounting approach is not 
incompatible with a decentralization policy. We consider this approach to be complementary and not 
antagonistic to the current accounting approach. There is a need to distinguish between 
management and information: we expressly state "clear and comprehensive understanding", not 
"management". Cost accounting is an ex-post information tool, not an ex-ante management tool. It 
is a tool used for internal oversight and management oversight. We noted (paragraph 22  of the 
Audit Report ) that the standardized purchase management procedure recommended by the previous 
External Auditor had been rejected on the basis  that it would have been inefficient. It is to address 
transparency issues, e.g. an understanding of the full costs of staff assigned to the funds, and the 
difference between the resources generated by the 13% fee on a fund and the expenditure assigned 
to it, that we have recommended introducing cost accounting for trust funds with a view to ensuring 
a clear and comprehensive understanding of the full costs of each fund.  
7.45.  India's first question covers several aspects. With regard to whether we have made 
international comparisons, this point has been explored, but given the organizational and contextual WT/BFA/211  
 
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  differences in the work of other international organizations, it has not been possible to specifically 
identify relevant points of comparison regarding trust f und management.  
7.46.  The second aspect is whether we have addressed economy, effectiveness , and efficiency. We 
have done so by looking at the measuring tools available. Efficiency (the relationship between 
resources and outputs) and economy (the relationship be tween resources and objectives) are 
addressed in the comments on the lack of analytical data for establishing a balance sheet based on 
full costs. It therefore seemed judicious to propose to the Organization that it introduce more 
accurate cost accounting,  which would subsequently allow for a more complete assessment of the 
situation of each of the 11 trust funds . We considered effectiveness (the relationship between 
objectives and outcomes) to be, generally speaking, fairly well measured by the WTO using a ccurate 
and relevant indicators. However, we believe that it is still possible to improve the measurement of 
effectiveness by making better use of the tools available. This is alluded to most notably in 
Recommendation No. 2.  
7.47.  The third aspect mentioned by I ndia concerns the existence of a sufficiently clear overall trust 
fund strategy and the role of the Secretariat and the governing bodies. The external auditor drew 
the attention of the CBFA to the need to better exploit the Organization's elements pertaini ng to 
technical assistance, which indeed involves strengthening links with the general Secretariat. The 
Secretariat must be able to make available to Members the fullest possible information so as to 
enable them to take informed decisions. This overlaps wi th question 4 posed by the United States 
(there is no programmatic document covering technical assistance as a whole. Furthermore, reports 
on technical assistance are not compiled into a single document, which deprives the WTO of 
comprehensive and coherent  information on the implementation of the strategic technical assistance 
mandate entrusted to the WTO). This question has justified Recommendation No. 4 in our report.  
7.48.  Lastly, the fourth aspect relates to the examination of the level of satisfaction of mem bers 
and beneficiaries. The interviews held with a number of donors regarding some trust fund s did not 
reveal any significant dissatisfaction with what happens to the funds they have entrusted to the trust 
funds. With regard to the views of the beneficiari es, a review of the survey and control documents 
transmitted by the management of the Organization shows that beneficiaries are generally satisfied. 
These aspects were most certainly covered during the audit, but the team did not consider it 
necessary to m ake detailed comments in view of the results obtained.  
7.49.  With regard to the second question that India has been kind enough to ask, we were unable 
to access all the information required to carry out this audit due to the limitations of the information 
system  available. I would like to clarify that we are not opining on the capacity of the IT tool, which 
we have not assessed; nevertheless, a priori, we believe that it is for the Secretariat to further 
explore all the possibilities offered by the tool so as to better reflect trust fund  activity. The 
limitations of the information system prevent access to the information required to efficiently guide 
fund management. This shortcoming applies, for example, to the retrospective analysis of 
developments by category of expenditure and revenue for each fund. The WTO should use its 
accounting and financial databases to gain a clear understanding of the full costs of each trust fund, 
including all the costs borne by the regular budget (the Organization does not have enou gh attributes 
to use when recording commitments and payments, to develop cost accounting that is sufficiently 
accurate to ensure full financial statements for each trust fund . Worthy of note is the excellent 
cooperation shown by the Secretariat teams that provided the auditors with all the financial elements 
available. However, the limitations of the information system did not allow the auditors to conduct 
a fully comprehensive review of the financial position of the trust fund s (there are gaps in particula r 
regarding indirect HR costs, which currently remain incorporated in the Organization's regular 
budget, according to the auditors).  
7.50.  The third question from India on the possible formulation of more specific recommendations 
has been addressed in the joint reply to the United States and India in point 1 of my intervention  
(paragraph 7.38 above ). The External Auditors' recommendations should be viewed as a follow -on 
from the general guidelines proposed by the Working Group. The auditors stress that these 
guidelines must still be translated into procedures , and it is the Secretariat's responsibility to do so 
as quickly as possible.  
7.51.  India's fourth question asks us to be more specific about the structure and functioning of the 
steering body, the establishment of which we call for in Recommendation No. 2. We have not 
considered it our responsibility to propose a specific structure for the body because, in our view, it WT/BFA/211  
 
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  now falls to the Secretariat to propose to the CBFA the best structure for ensuring the unified an d 
coherent management of the body. We have merely suggested that this body be established in order 
to ensure that each trust fund is governed with a more horizontal and less silo -based approach. Of 
course, the availability of the information generated thro ugh increased cost accounting and the 
subsequent consideration of the rules concerning the distribution of direct and indirect expenditure 
among trust funds and the Organization's regular budget will be crucial factors for ensuring improved 
governance.  
7.52.  India's fifth question, also raised by Norway and China,  focuses on our suggestion in 
paragraph 66 of the Audit Report to specify the rules on the use of trust funds' liquidity. I will respond 
jointly to these three Members. What strikes us , first of all , is that the trust funds have a significant 
liquidity surplus, which stood at CHF  41 million as of 31 December 2021 and was on the increase. 
We note that the funds' level of liquidity is rather comfortable. However, we stress that these 
surpluses constitute WT O debts to donor s. Like all debts, the conditions for their potential repayment 
must be anticipated and this should be specified in a text. Moreover, in paragraph 65, we note that 
these surpluses are the result of payments that are not exactly aligned with  the pace of the action 
planned. We understand that each Member follows its own national rules regarding the payment of 
contributions. We simply wish to stress that this accumulation of liquidity results in the transfer of 
liquidity risk and management ris k from donors to the WTO and its Secretariat. The payment of 
funds cannot, in line with good management practices, be seen as the expression of a political 
commitment or interest: pledging funds to signal a political intention is not appropriate if there i s a 
lack of capacity to absorb such funds. The payment of funds must be closely linked to the 
Organization's absorption capacities. Rules could perhaps formalize the relationship that should exist 
between the requests to mobilize resources that Members wis h to contribute to the trust funds and 
the pace of these funds' expenditure. Establishing such rules would thus allow for the determination 
of the amount of cash funds that should ideally be available.  
7.53.  With regard to question 6 from India on the inclusion of a recommendation on the 
consideration of issues linked to trust funds in the risk register, Recommendation No. 3 could indeed 
be enhanced through renewed monitoring in terms of the method of assessing the risks associated 
with trust fund management. How ever, a choice was made just to mention this point in the text 
since the means of the Office of Internal Oversight (OIO) are very limited. Moreover, this is not an 
area that we audited in depth.  
7.54.  There is also question  7 from India on the fact that 20% of t he total volume of technical 
assistance trust fund resources is not managed by the Institute for Technical Cooperation and 
Training. There is currently room for improvement in terms of the comprehensive consolidated 
overview of the actions of all the trust  funds and their consistency with the goals of each trust fund 
and the Organization's strategy. Even the Committee on Trade and Development has no 
comprehensive overview and the information provided is therefore incomplete . 
7.55.  Question 8  from India, on the sc ope of Recommendation No. 4 , has been addressed in the 
reply to question 4 from the United States ( paragraph 7.41 ). The External Auditors are of the view 
that the Recommendation adequately covers the range of issues raised in paragraph 86  of the Audit 
Report , particularly through the following section: "comprehensive information [...] that can be 
correlated with the activities of the various funds contributing to the technical assistance strategy". 
Accordingly, the External Auditors do not  consider that Recommendation 4 is too general.  
7.56.  Question 10 from India focuses on international comparisons in the area of cost accounting. 
The cost accounting practices of other international organizations are more or less accurate. 
However, in any case, third parties must be properly informed through accurate reporting, regardless 
of what takes place in other international organizations. Moreover, India asks us if the financial 
regulations need to be amended. At this stage of the work of the External Auditors, the 
Recommendations are focused on the need to modernize cost accounting tools in order to improve 
information. As a result, the Organization's financial rules are not affected. Only the elements raised 
regarding the management of the trust funds' li quidity could, depending on the guidelines used by 
the Organization, translate into an additional rule. Lastly, I confirm that an improved knowledge of 
costs would indeed, in our view, constitute a good accounting practice. This would allow for 
expenditure  to be attributed to the budgets genuinely concerned by this expenditure. The trust 
funds' financial statements set out, upon each accounting close, the Organization's potential debt to 
donors in case of termination of the trust funds' activities. This is why there is a need for reliable WT/BFA/211  
 
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  and accurate financial statements that are in conformity with the International Public Sector 
Accounting Standards.  
7.57.  The purpose of the report is not to call for the reintegration of the trust funds into the regular 
budget. On the contrary, the mission calls for more accurate cost accounting in order to ensure that 
the trust funds' financial statements are as accurate and reliable as possible. We raised the matter 
of reintegration only in the case of the TFAF fund. This issue  was addressed in the reply to Question  5 
from the United States  (paragraph 7.42 above ). 
7.58.  The surplus remains a debt of the Organization to donors. However, adapting the expenditure 
profile to donations is a good management practice. The cash balance must t herefore remain  
consistent with the pace of expenditure. The amount of CHF 41 million must raise alarm bells, since 
the previous year's balance stood at CHF 35 million, meaning that there was an increase of 17%. 
The pace of expenditure is therefore insuffi cient given the significant contributions received, which 
suggests that the Organization's activities could fall short of donors' expectations.  
7.59.  Careful consideration has been given to the views of the CBFA and our report devotes much 
attention to them (see  paragraph 24  of the Audit Report  in particular). However, the work of the 
External Auditors must respect the International Standards of Supreme Audit Institutions. Our work 
is carried out in accordance with these standards and with the terms of reference notified to the 
WTO on 22 June 2022 and must remain independent. It is therefore our responsibility to make 
findings and, potentially, recommendations that are consistent with the results of our own work.  
7.60.   The External Auditor is limited to merely highlighting a risk. In our view, it is essential for 
the WTO to work further with Members to ensure that the payment of their contributions is better 
regulated.  
7.61.  Paragraph 75  of the Audit Report  does not insinuate that the discussions at the CBFA are not 
of use. This paragraph stresses that the budgetary discussions on trust funds must focus on the 
nature of trust funds' expenditure in the area of technical cooperation, which must be consistent 
with both the objective of the trust funds and the Organization 's strategy. However, the examination 
of the written records of the CBFA's discussions show that they are essentially focused on budgetary 
aspects and fail to address the nature of the interventions and their accounting and financial 
consequences on the tr ust funds' situation. That said, this observation stems from the examination 
of the written records as evidence in our audit and we must admit that we do not know what was 
actually said orally in the discussions, which could perhaps reflect another reality . This is also why 
we have suggested being able to attend these discussions.  
7.62.  Paragraph 88 of the Audit Report echoes the content of paragraph 75 by stressing the need 
for a consolidated overview of technical assistance in order to identify the impact of th e trust funds 
in this area as part of the discussions at the CBFA. Given that the Organization also finances the 
International Trade Centre, the External Auditor stresses the need for a more consolidated overview 
to be provided to the CBFA as part of its b udgetary prerogatives. The annual technical assistance 
report prepared in conjunction with the Organisation for Economic Co -operation and Development 
could enrich discussions. We have not audited this report.  
7.63.  The delegation of China asked us to make the fo llowing changes : replace "sub-funds" with 
"projects " in paragraph 17 of the Audit Report ; and replac e any reference to "Member States" in the 
document with "Members". We have no  objection  to making these changes . 
7.64.  In response to the question posed at paragraph 7.3 6. regarding the legal status of the Audit 
Report, the Auditor  stated that the basic principle is that the Auditor s propose s recommendations, 
Members decide whether they need to be implemented, and lastly, the Secretariat implements the 
recomm endations. He said that, f or a performance audit, recommendations can be considered 
appropriate or not, thus implemented or not . He added that Auditors ' Recommendations pertaining 
to the financial audit have to be implemented  because the Auditor acts as a sovereign entity , and 
that the Auditors issue an opinion  on the audited financial statements . 
7.65.  In response to another question posed at paragraph 7.3 6. regarding the use of the term 
"donors " instead of "contributing Members ", the Auditor  stated that contributi ng Members refers to  
Members of an Organization who provide mandatory contributions according to the Organization's WT/BFA/211  
 
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  strategy, whereas donors provide voluntary contributions.  He said regarding  the specific case of 
trust funds, the wor d donors has to be used because Financial Regulation  19 refers to donors.  
7.66.  A Member asked if it would be possible to receive the answers in writing as there is a lot of 
information to be discussed regarding trust fund reform.  The Member asked if Recommendat ion 6 is 
intended to be applied to all trust funds, including the Program Support Fund. The Member also 
asked for clarification of  any interplay between Recommendation 4 and Recommendation 6. On 
Recommendation 4, the Member commented on the efficiency of c onsolidation of trust fund activities 
for planning and the importance of a consolidated assessment of the results achieved.  
7.67.  A Member thanked the Chair and the Auditor for the Audit Report and stated that it would be 
good to have the statement made by the Auditor shared among the CBFA Members.  
7.68.  The Member that had asked the question at paragraph 7.3 5. regarding terminology thanked 
the Auditor for his responses. She said some time would be needed to digest the information 
provided. She said that in Financial Regulation 19 , the term "donors" is used as a general reference 
and does not refer to any specific Member. She said therefore  this term  ought not be used when 
referencing specific projects.  
7.69.  The Auditor thanked Members for the ir additional questions. In response to the comment at 
paragraph 7.6 7. he said his statement can be circulated to Members, adding that the statement 
simplifies the Audit R eport. He said it has to be noted that his comments and statements are not 
elements of the Audit Re port but just comments from him in his capacity as the Director of the 
External Audit Team . 
7.70.  In response to the questions and comments made at paragraph 7. 66. regarding  the interp lay 
between Recommendation s 4 and 6, the Auditor said  cost accounting would provide  additional 
information, which is also the aim of Recommendation 4. He commented that  setting up a cost 
accounting  system requires resources  and stated that it would be up to Members to decide whether 
it is worthwhile to introduce cost accounting.  
7.71.  A Member expressed appreciation for the work of the External Auditors and then proceeded 
to offer some comments about how to take the work forward combining the guidance from the 
performance audit and the recommendations of the Working Group . He said Membe rs have learn t a 
lot from these processes , both in terms of the diversity of  the size and activity of trust fund s and 
how they fit with the technical assistance provided from regular budget resources. The Member said 
it will be important , when considering the recommendations , that Members take a step back and 
think about the relationship between the WTO and technical assistance , adding that Members  would 
all agree that technical assistance is part of the deal when joining the Organization as a developing 
country. He recalled that there is a significant regular budget allocation reserved for the provision 
of technical assistance.  
7.72.  The Member stated that  there is a distinction  between smaller targeted trust funds , supported 
by only one or a few Members , and eff orts to provide technical assistance to implement a multilateral 
WTO Agreement, where it may not be most appropriate for the support to come from a trust fund. 
He mentioned that the International Trade Center is supported by the WTO's regular budget 
resour ces and does a lot of technical assistance on a range of topics , some of which might be only 
loosely related to trade policy, whereas there are hard core trade policy topics about how to 
implement a multilateral Agreement, such as the Fisheries Agreement . He said , in this regard , 
developing Members must depend on trust funds. The Member suggested that , keeping in mind that 
trade agreements are becoming more complex, the technical assistance for any future multilateral 
agreements ought to  be provided multila terally under the regular budget. He said  this would be good 
for the WTO and would eliminate the need for expensive and complicated cost accounting or other 
inefficiencies that trust funds may present . He said  the processes that have been used to review th e 
concerns raised over the past few years have led to important improvement s, and he thanked the 
Members  that contributed to those improvements. He reiterated that , for multilateral Agreements, 
Members ought to  come together and decide what the best policy will be for the WTO overall.  
7.73.  The Auditor  said the intervention of the Member that spoke in paragraph  7.72. was not a 
question to the External Auditor s and added that the External Auditors share the views expre ssed 
by the Member.  WT/BFA/211  
 
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  7.74.  The Chair thanked the Auditor for taking the time to return to Geneva and for his comments 
and comprehensive replies to Members' questions.  
7.75.  The Committee took  note of the comments m ade and the questions that were posed . 
8  SECRETARIAT'S RE SPONSES TO THE REPORT OF THE INDEPENDENT EXTERNAL 
AUDITOR ON THE PERFORMANCE AUDIT ON GOVERNANCE AND MANAGEMENT OF EXTRA -
BUDGETARY TRUST FUNDS – WT/BFA/W/623  
8.1.  An Official of the Secretariat  thanked the External A udit team for its work and the constructive 
professional  relationship it has developed with the Secretariat . He said the  Secretariat is in general 
agreement with the observations in the Audit R eport , though some of the  recommendations were 
not fully relevant i n the context of the WTO.  
8.2.  He said most of the recommendations will require further input and/or consultations with 
Members with a view to determining  how to implement them. He reiterated the comments made by 
the External Auditor in paragraph 7.64. that  it is for Members to decide whether some 
recommendations  ought to be implemented or not, bearing in mind the  WTO context. The Official of 
the Secretariat said g iven that Members have spent a lot of time on trust fund issues and worked to 
find a clear and balanced understanding amongst  themselves, they should be well positioned to 
provide guidance to the Secretariat on how to proceed.  
8.3.  Referring to a comment in the Audit Report that 50% of the people working on managing trust 
funds are paid from the regular budget, the Official of the Se cretariat specified that these staff 
members spent  just some of their time, and not full time, on trust funds. He added that about 20% 
of the staff identified as funded from the regular budget reported working 5% or less of their time 
on trust fund management. He said most of the regular budget staff referred to in the 
recommendation work in  the ITTC, which has a direct mandate and mission to oversee the WTO's 
technical assist ance, including a significant regular budget allocation. He said it is important for 
Members to have a nuanced understanding of the 50% reference in terms of what t he regular budget 
resources represent. He said that the Secretariat is comfortable that ther e are sound justifications 
for those regular budget staff allocations.  
8.4.  The Official of the Secretariat said  Recommendation 1 is an interesting example of where 
contextual issues might influence the response of Members and the Secretariat. With the preface 
that he is not an expert in terms of the legal basis for the Independent Entity, he suggested that 
just because the facility has not had transactional activity does not mean that it does not serve a 
purpose in some broader context of the Agreement it deriv es from. He said the recommendation 
would have to be raised with the Committee that oversees the corresponding Agreement to get the 
views of Members on how to proceed.  
8.5.  The Official of the Secretariat said Recommendation 2 mirrors  an observation from the Wo rking 
Group and that the Secretariat intends to implement  that recommendation . He added that  Members 
will be interested in the specifics of what this steering body might look like and what its mandate 
and operating procedures will be. Regarding Recommendat ion 3, the Official of the Secretariat said 
in the trust fund reports that are regularly submitted to Members, information for most of the trust 
funds already shows budget and expenditure. He said the Secretariat will, going forward, include 
similar inform ation for  the smaller trust funds.  
8.6.  The Official of the Secretariat said Recommendation 4 is consistent with what Members 
suggested in the Working Group Report and that the Secretariat intends to develop a vehicle for 
communicating a more consolidated view to  Members and other stakeholders. He said, a s with 
Recommendation 2, the specifics of how to operationalize this will require further consideration in 
terms of the practical aspects.  
8.7.  The Official of the Secretariat said it is unclear to the Secretariat how to implement 
Recommendation 5. He said it is for Members to decide how this  recommendation  is to be addressed . 
8.8.  Turning to Recommendation 6 , the Official of the Sec retariat said, depending on how a cost 
accounting mechanism would be implemented, the recommendation could have some important 
implications across a range of the Secretariat's operations. He observed that how one decides to WT/BFA/211  
 
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  interpret what is meant by "a co mprehensive understanding of the full costs of each trust fund" 
would have significant implications , particularly resource implications . He said the Secretariat would  
undertake a cost -benefit analysis to better understand the trade -offs and what is going t o serve  best 
the Organization and its Members. He mentioned that understanding the costs of trust funds was at 
the core of the revision s that were made to  Financial Regulation 19. He said the  Secretariat intends 
to work closely with Members to get more inf ormation and further guidance on what an appropriate 
and commensurate implementation of the recommendation , in the context of the WTO , would be. 
8.9.  The Official  of the Secretariat made comments on the status of the Working Group 
recommendations that Members a dvanced to the Secretariat in 2022 . He noted that shortly after 
receiving the recommendations from the CBFA , the Secretariat became aware of the fact that the 
External Auditors would be coming to do a performance audit of trust funds. He said, the Secretar iat 
had deemed it worthwhile to wait and see what recommendations would be made by the External 
Auditors  to be able to develop guidelines that would take the External A uditors ' recommendations 
into account . He confirmed that now that the additional informa tion from the External A uditors is 
available, the implementation of the various recommendations will gain momentum. He as sured 
Members that some internal conversations and exchanges on how to proceed had already started 
and that the Secretariat will now be able to move forward more concretely and be able to report 
back with periodic updates to the CBFA.  
8.10.  A Member  said he would be happy to join any conversation or consultation  pertaining to  
Recommendation 5 . He added that there had been a specific reason why the TFAF was not put under 
ITTC at the outset . He added that  his understanding was that the ITTC was not set up for grants 
and noted that this aspect needs to be considered in the decision making. He als o asked whether  a 
staff member  retiring from  a post 100% funded from regular budget retired could be replaced by 
another staff member funded from extra -budgetary funds. The Member also asked for a more robust 
response  from the Secretariat  to Recommendation  6. 
8.11.  A Member enquired about the next steps regarding both the Working Group's and External 
Auditors ' recommendations.  
8.12.  In response to the question in paragraph 8.1 1. above, t he Official of the Secretariat said the 
Secretariat's responses  to the audit recomm endations  are preliminar y as some items need  to be 
studied in -depth  and others w ould require consultation  with relevant Divisions in the Secretariat  and 
Members.  
8.13.  Responding to the comment  in paragraph 7.6 2. regarding  a consolidated technical assistance 
plan with the ITC , the Official of the Secretariat said this would be possible starting from  2024, as 
the ITC is already well advanced in its planning. He said the Secretariat will report back to the 
Committee in due co urse. 
8.14.  A Member informed the Committee that he had submitted a proposal for additional language 
to the recommendation pertaining to Members and Observers in arrears. He said his intention is to 
propose a positive and constructive way to have the arrears set tled. 
8.15.  Responding to the comments in paragraph 8.14. , DDG Ellard  said that she did not have a 
definitive answer as the submission was made by the Member via e-mail during  the meeting . She 
said she could work with the Member in question to find the right wor ding. 
8.16.  The Committee took note of the External A uditors ' recommendations and the responses 
provided by the Secretariat.  
9  2023 WTO SALARY SURVEY AND DEPENDENCY ALLOWANCES : CUMULATIVE MOVEMENT 
OF THE WTO SALARY SCALE IN 2018 -2023 - WT/BFA/W/620  
9.1.  An Official of the Secretariat informed Members of the outcome of the 2023 salary survey , as 
well as an adjustment of the dependency allowances to take effect in 2024.  
9.2.  He said that in accordance with the salary adjustment methodology , which is set out in An nex B 
of the Staff Regulations , the salary survey  for 2023  was carried out by comparing WTO salaries with WT/BFA/211  
 
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  those of the market comparators  (the United Nations  Office in Geneva  and the Coordinated 
Organizations, weighted at 70% and 30% , respectively ). 
9.3.  He sai d salaries in both the UNOG general services  and professional categories saw increases 
since the last salary survey in 2022.  He stated that the UNOG professional salaries increased by 
2.28% on 1 January 2023, with an equal reduction to the post adjustment factor, on a no gain no 
loss adjustment.  He continued by saying that  the UN also made cost -of-living -related increases to 
the salary levels for their professional staff in Geneva in 2022. He added that the salary scale for 
UNOG  general services  staff increased by 2.9%. He noted that t he salaries in the Coordinated 
Organizations increased by 6.1%, which  had an impact on the WTO salary survey . He said  as a result 
of these developments,  the WTO salary scale had to be adjusted upwards  by 3.1% in 202 3. 
9.4.  The Official of the Secretariat informed the Committee that o ne frozen salary scale , applicable 
to staff who joined the WTO before 2012 , remains in effect and will not be overtaken by the 2023 
salary scale. He said s taff paid based on  the higher frozen scale will not be affected by the increase 
to the 2023 salary scale . He added that the budgetary impact , estimated at CHF 1.4 million, is 
therefore lower than would have been the case if all staff had received a 3.1% increase to their 
salaries.  
9.5.  The Officia l of the Secretariat further stated that the difference between the frozen salary scale 
and the 2023 scale is only 0.3% and that future salary scale adjustments, over and above the 0.3% 
difference, would thus have a greater budgetary impact as they would a pply to the full staff 
population.  
9.6.  The Official of the Secretariat said  a new methodology  for calculating d ependency allowances  
was introduced in 2018 . He said dependency allowances are adjusted in line with the cumulative 
movement of the WTO salary scale every three years , subject to a 2% threshold being reached . He 
informed the Committee that, a s this threshold was not reached, there was no adjustment made 
after the first 3 -year period.  He added that, f ollowing the 3.1% adjustment in 202 3, the cumulative 
movement of the salary scale for the period 2018 to 202 3 now  stands at + 4.6%, and therefore t he 
dependency allowances should be adjusted accordingly as of 1 January 2024.  
9.7.  A Member asked to what extent the cost linked to the 2023 salary increase would be recurrent 
or a one -off cost. The Official of the Secretariat responded that the salary increase would also affect 
salary levels in future years and that it would have a recur rent impact on the budget.  
9.8.  In response to a Member's question about the  background of the frozen salary scale , the Official 
of the Secretariat said it was introduced in 2012 , following a negative adjustment of the WTO salary 
scale. He said at the time new staff were paid against the reduced salary scale and existing staff 
against the frozen scale. He said the  staff paid against the frozen scale would not, however, receive 
a salary increase until the frozen scale is overtaken.  
9.9.  A Member  asked  how the increase d cost would be covered , given that the budget of the 
Organization is not being increased. The Official of the  Secretariat responded the Secretariat  has 
already taken a number of steps to reduce costs , and that a projected salary increase of between 
3% and  4% for 2023 had already been included in the budget.  
9.10.  A Member commented that a freeze of salaries could  be considered , going forward , given the 
budgetary situation. The Official of the  Secretariat replied that it  is for Members to decide whether 
to freeze salaries . He also underlined the  need to remain competitive in terms of attraction and 
retention of staff.  
9.11.  A Member inquired about the cost of the increase to the dependency allowances. The Official 
of the Secretariat responded that the impact of th e increase in the allowances in 2024 is estimated 
at approximately CHF240,000.  
9.12.  The Committee took note of the report  and the comments made.  WT/BFA/211  
 
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  10  WTO SECRETARIAT'S STAFF LEARNING AND DEVELOPMENT PROGRAMME 2022 - 
WT/BFA/W/621  
10.1.  An Official of the Secretariat reported that the Secretariat's 2022 learning and development 
programme was informed primarily by findings arising from the diagnostic phase of the 
transformation exercise. She said these are the need to enhance skills in the  areas of (i) performance 
management; (ii) leadership capability; (iii) innovation; and (iv) corporate values.  She explained 
that a range of performance management and leadership initiatives were on offer to staff , including 
a new Change Simulation worksho p, which provided Managers and Directors with first -hand 
experience of complex organizational change.  
10.2.  She said p romoting a culture of innovation and c reativity in international organizations was 
the focus of a webinar series that provided staff at all leve ls of the Organization with opportunities 
to interact with Heads of Innovation in various international organizations  to explore issues such as 
"how to break through the bureaucratic process".  
10.3.  The Official of the Secretariat said w ebinars on ethics, diversity, inclusion , and gender 
reinforced the importance of shared corporate values of inclusivity and respect. She added that the 
first ever workshop on Workplace Racism addressed how racism may manifest itself, albeit 
unconsciously, in work environments and how to shift behaviour to ensure a more inclusive WTO 
Secretariat, free of racial microaggressions, both overt and subtle. She said the 2022 training 
programme on gender and inclusion placed emphasis on supporting men as gender equality allies in 
the workplace.  
10.4.  The Official of the Secretariat said the  Training for Technical Assistance Trainers workshop  
that was conducted in 2022  not only addressed the design and delivery of technical assistance events 
as in previous years , but it was also comprised of specialised modules on topics such as (i) Use of 
Case Studies; and (ii) Mastering Virtual Platforms. She said in  the future specialized modules will be 
subject to change depending on the emerging needs of WTO staff.  She said t he International 
Computer Driv ing Licence (ICDL) certification, a globally recognised information and communication 
technology (ICT) and digital literacy qualification, was introduced as a means of encouraging staff 
to enhance their IT skills.  
10.5.  The Official of the Secretariat concluded by stating that in addition to 1:1 coaching, peer 
coaching , and mentoring opportunities, the Learning Service continued to provide administrative 
support to cross-Secretariat learning networks on digital transformation & trade; trade & climate 
change ; and transparency.  
10.6.  A Member said it is always a pleasure to get the updates on learning and development , and 
he expressed his appreciation of the enthusiasm with which they are presented. He said his 
delegation acknowledge s and appreciate s the WTO's activities around ethics, diversity, inclusion , 
and gender to reinforce the Organization's shared values of inclusivity and respect. He added that 
his delegation looks forward to the launch of additional programs this year , including activities with 
an emphasis on inclusion and LGBTQ staff. He said his delegation st rongly encourage s that disability 
inclusion be integrated into future learning and development initiatives to further build awareness 
and understanding. The Membe r said his delegation support s the recommendation in the newly 
launched WTO framework on gender equality to have mandatory training on gender equality , 
including the prevention of sexual harassment , and welcome s reporting in future meetings of the 
CBFA on the progress of implementation.  
10.7.  A Member said the  work being done in the WTO  through the  staff learning and development 
program  is commendable . Referring to paragraph  4 of document WT/BFA/W/621 , he asked if there 
is any specific reason , other than cost , that offsite courses are restricted to Europe . He said the WTO 
could  benefit from courses in other parts of the world because th is would enable  WTO staff to 
understand the realities on the ground in other regions . 
10.8.  A Member said the  presentation, in particula r outlining the activities undertaken, is very useful 
and quite impressive given the range of topics covered. The Member said a strong learning and 
development  program can really enhance staff engagement , noting that this  is part of the workplace 
culture c onversation in her Ministry and also part of broader engagement.  She asked if the WT/BFA/211  
 
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  Secretariat could provide some insight on the  uptake of learning and development programs , how 
staff is engaging , and how to encourage that engagement.  
10.9.  In response to the comments in paragraph 10.6. regarding  disability inclusion , the Official of 
the Secretariat said a series of programs will be put in place in 2023 to celebrate international 
awareness days on various aspects o f diversity, equity , and inclusion . 
10.10.   The Official of the Secretariat  said a new initiative, "E mpower ing Women's P rogram " has 
been put in place . In addition, other gender -related initiatives will address areas like unconscious 
biases and mandatory sexual har assment training , as suggested in the gender framework.  
10.11.   In response to the comments at paragraph 10.7. regarding external courses,  the Official of 
the Secretariat said the reason for restricting such courses to Europe is , to a large extent , due to  
budget  considerations.  
10.12.   In response to the comments at paragraph 10.8. regarding engagement and uptake, the 
Official of the Secretariat said  courses and webinars are presented in a modular format because it 
was found  that staff members had challenges attending long -term development programs, especially 
when these programmes are conduct ed virtually. She said on -the-job training  sessions , such as 
learning networks , are effective to  engage staff because such sessions  are practical, and they focus 
on more what is happening regarding  job practical issues , as opposed to the short sharp injections 
of learning courses. She said other approaches such as peer  coaching  and mentoring  are usually 
well subscribed.  
10.13.   The Committee t ook note of the presentation and the comments made.  
11  OUTSTANDING CONTRIBUTIONS FROM MEMBERS AND OBSERVERS AS AT 
31 DECEMBER 2022 – WT/BFA/W/619  
11.1.  An Official of the Secretariat reported that the annual receipts for 2022 were significantly 
higher than  those  at the end of 2021. She said this was principally due to the fact that one of the 
top contributors had paid part of its contribution in January 2022, and two other Members settled 
their arrears. She said the WTO had received 97% of its assessed contributi ons in 2022 , compared 
to 85% in 2021.  
11.2.  The Official of the Secretariat said the WTO had received 65% of the assessed contributions 
for 2022 during the year, compared to 56% in 2021.  
11.3.  She said a s at 31  December 2022 , 18 Members were subject to administrative measures , 
compared to 16 as at 31 December  2021. She said 10 Observers were subject to administrative 
measures as at 31 December  2022, compared to 8 as at 31 December 2021.  
11.4.  The Official of the Secretariat informed  the Committee that a s at 9 March  2023, 22 Members 
and 9 Observers were subject to administrative measures.  She highlighted the measures in place 
for Members with outstanding contributions , adding that they  include  sending  quarterly reminder 
letters to Mem bers in arrears , a letter from the D irector -General  to Members under administrative 
measures , and regular follow up by e -mail and phone calls to various Members in arrears.  
11.5.  In response to a question from a Member about the evolution of the outstanding amou nt from 
Members under administrative measures , the Official of the Secretariat said  the overall amount had 
remained relatively stable.  
11.6.  The Member that had posed the question referred to in paragraph 1 1.5. suggested add ing ''or 
seek a payment plan'' to future recommendations pertaining to arrears. He noted that he would 
come back to the Committee with a further suggestion . 
11.7.  The Committee endorsed  the recommendation below : 
The Committee invites the General Council to urge Mem bers and Observers under 
Administrative Measures to liquidate their arrears.  
 WT/BFA/211  
 
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  12  LDC MINISTERIAL CONFERENCE TRUST FUND 2023 -2024 – WT/BFA/W/624  
12.1.  An Official  of the Secretariat introduced the paper drawing  Members'  attention to the fact that 
the trust fund that  support s the participation of capital -based officials  from LDCs  in Ministerial 
Conferences needs  to be replenished ahead of  MC13. He said, as there is no meaningful carry -
forward in this trust fund, he invite s Members to consider making contributions to i t and start the 
necessary processes with their authorities.  
12.2.  The Official of the Secretariat explained that the estimate d costs for MC13  are relatively high 
as airfares are the biggest variable , and they have increased in cost over the past year.  
12.3.  A Member suggest ed that  the Secretariat consider strategies to broaden the donor base.  
12.4.  The Official  of the Secretariat said that in the past , when the trust fund had low balances , the 
Secretariat had circulated f ormal letter s requesting support . He said this w ould be done again.  
12.5.  The Chair added her voice to the initiative and  invite d Members to consider supporting the 
trust fund in the coming months , adding that  MC13 will be taking place in the not -too-distant fut ure. 
13  APPOINTMENT OF THE CHAIRPERSON OF THE CBFA  
13.1.  The Chair recall ed that the General Council had recently approved the appointment of the 
new Chair s for the different WTO standing bodies, in accordance with the established guidelines.  
13.2.  She said it had been a  privilege for her to serve as the Chair of the CBFA  in 2022.  She stated 
that the General Council had reappointed her as Chair of the CBFA for 2023 , and said she was happy 
to continue in this capacity . She then p roposed that the CBFA move forward on this b asis. 
13.3.  The Committee adopted the appointment of its new Chair, by acclamation.  
13.4.  The Chair  thanked Members for the trust and confidence they had shown in her.  
13.5.  The meeting was closed.  
_______________  
 WT/BFA/211  
 
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  ANNEX 1  
QUESTIONS FROM MEMBERS ON THE PERFORMANCE AUDIT REPORT OF THE INDEPENDENT 
EXTERNAL AUDITOR ON THE GOVERNANCE AND MANAGEMENT  
OF EXTRA -BUDGETARY TRUST FUND  
United States  
 
1. We appreciate the significant systemic impediments identified in paras 38 -39, which we  
believe have also been well reflected in CBFA discussions since at least 2018. Ensuring that 
trust funds are not implemented in a manner that undermines the international character of 
the WTO (para 38) and the lack of rules governing these funds (para 39)  have been identified 
by Members as priority concerns. Given that Members have raised these concerns over an 
extended period and as a priority, and the minimal policy changes have been enacted to date 
by WTO management, can you provide more explanation as to why your recommendations 
were not more specific in addressing these fundamental systemic concerns?  The 
recommendation to establish a steering committee may be viewed as a remedy for these 
impediments, but would you agree that absent clear rules at the o utset, any steering 
committee could well be ineffectual and unable to implement any real reforms?  
2. We acknowledge and highlight your finding in para 45 that the transparency steps taken in 
2019 were a vital step forward but far from sufficient. Based on you r experience with global 
best practice, are there examples of more comprehensive and proactive transparency regimes 
which could be instructive as a basis for driving improvements in transparency in trust fund 
establishment to ensure that any policies put i n place pursuant to the recommendations in 
paras 38 and 39 are effective and complied with?  
3. We appreciate the detailed comments in paras 50 -53 regarding the operation of the Program 
Support Fund. We are interested to know, given the analysis provided, why there is not a 
more specific recommendation related to addressing these deficiencies .  We 
understood from your presentation that perhaps Recommendation 6 is intended to encompass 
the PSF, if that is the case, could you provide more specifics on how you see  the 
Recommendation 6 addressing the concerns raised ? Based on your expertise and 
experience, can you provide any additional references or resources to assist in evaluating  
whether or not a flat rate fee approach for cost recovery/cost offset is the most 
effective  and efficient policy approach? Are there other good practices available for our review 
that speak to the use of a sliding scale based on resource intensity  of fund management 
that might be an alternative the WTO Secretariat can consider. If the co ncept is that a flat fee 
evens out across funds, where some are more resource intensive and some less, can you 
provide your own assessment on makeup of the WTO trust fund portfolio given the diversity 
in size and activity level.  
4. With respect to Recommendat ion 4, could you provide more clarity on what you believe is the 
objective of this recommendation, so that we are better able to monitor its correct 
implementation? We believe we understand the text of the report (paras 81 -86) to be 
highlighting concerns r elating to the dispersion of trust fund activity management. Do we 
understand correctly that your recommendation includes comprehensive inclusion of all trust 
fund activities into one planning document for discussion/transparency with Members?  
5. We appreciat e the analysis and recommendations included in section 6, paragraphs 89 -96 
regarding transparency of staff cost expenditures. Some Members have been long advocating 
for trust fund proposals to be clear and transparent regarding the full impact of a fund’s  
operation on the regular budget of the WTO. However, we would request clarification on the 
rationale underpinning Recommendation 5. It is the Membership at large that must accept the 
consequences of the particular relationship between any particular fund and the regular 
budget. We seek clarification on why the recommendation was not for the trust fund in 
question to reimburse the WTO regular budget for the staff time it received but did not pay 
for. We note that the primary purpose of the TFAF was to provi de grants to those Members 
unable to access financing elsewhere, this is not an activity that can be absorbed into the WT/BFA/211  
 
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  regular operations of the WTO as there is no grant making activity outside of select trust 
funds. Furthermore, if the recommendation is f or the regular budget to absorb additional trust 
fund expenses, this creates a precedent for continued misallocation of staff time.  Subsequent 
trust funds established by the WTO Secretariat included commitments to avoid use of regular 
budget resources, im plementation of the auditor’s recommendation would open the door for 
future cost -free non -compliance. We would ask that the auditor re -evaluate its 
recommendation for corrective measures in this instance.  
6. With respect to Recommendation 6, can you comment o n potential challenges that may face 
the WTO Secretariat in implementing a rigorous, comprehensive and consistent regime of cost 
accounting for trust funds given that the WTO Secretariat has chosen to take a decentralized 
approach to trust fund establishme nt – where many divisions manage trust funds, but one 
division may only manage one trust fund.  If you were to return to conduct another 
performance audit in five years and you found that multiple divisions had to independently 
implement and maintain separ ate accounting systems for their single trust fund expenditures, 
and the Secretariat had to establish a horizontal oversight and monitoring system to ensure 
that each division correctly implemented the cost accounting regime, would you draw attention 
to the inefficiencies in such a decentralized approach?  We note, with concern, that past 
external auditor recommendations with respect to horizontal implementation of procurement 
policies across divisions have been rejected by the Secretariat with the justific ation that the 
decentralization has meant that wastage or non -compliance is minimal on a divisional basis, 
regardless of the total or overall cost to the organization.  Could you foresee a similar 
argument being made which could undermine what you intended  to accomplish with 
Recommendation 6?  We see grounds for this question in the auditor’s report paras 82 -86 
where you focus specifically on the delivery (and dispersion) of capacity building activities, 
but the same rationale could apply to the financial m anagement and cost accounting activities 
of the Secretariat staff.  
Germany  
7. We very much support the point made by the auditors that an overarching examination, 
evaluation and coordination of the trust fund landscape through the Secretariat would be 
purpose ful. 
8. We also support the external auditors in their assessment that contributions of funds to the 
regular budget need to be accurately monitored and valued – particularly with regard to 
member s' obligations to national audit offices and accountability.  
9. We welcome Recommendation 4 of the external auditors to provide comprehensive 
information to WTO members and stakeholders on all technical assistance activities of the 
WTO. This is necessary for purposes of accountability and transparency. That being said, th e 
WTO's "Technical Assistance Annual Report" provides comprehensive information on its 
technical assistance activities. However, the TA Annual Report could be improved by clearly 
spelling out how the activities and expenses of each fund contribute to WTO’s  technical 
assistance activities, as recommended by the external auditors.  
10. With regard to Recommendation 5 we would be grateful for clarification which specific costs 
are meant with “Facility’s assets” and what specifically is meant by “Financing for the 
implementation of the TFA” and how and what exactly should be incorporated into the regular 
WTO Budget?  
11. We agree the cost accounting proposed by the auditors can serve as an effective tool to 
manage trust funds  and to keep staff costs in check – it should b e explored in a timely manner.  
India 
12. External auditor has done an excellent job in Performance Audit to examine the management 
of trust funds on the basis of economy, efficiency and effectiveness. Performance audit makes 
6 Recommendations, 4 of which are c ategorised as fundamental issues requiring 
management’s immediate attention. Major infirmities observed by Auditor are: Nonadherence 
to IPSAS to provide true costs; not reflecting the contribution of regular budget to the funds; WT/BFA/211  
 
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  not having any institutiona l mechanism/tools for measuring operational efficiency; not having 
an overview of the outcomes of the activity financed by the trust funds; lack of internal 
oversight; inadequate MIS; and need for enhanced transparency.  In the above context, the 
External Auditor is requested to shed light on the following questions.  
13. Q1: Have all aspects as identified in the ToR been examined by the auditors? The ToR lays 
down the purpose of the audit in para 3 which inter alia requires comparing the Trust Funds 
external governance, executive structure and processes with the practices of other 
international organization s; recommended best governance practices; examining economy, 
effectiveness and efficiency of each fund in terms  of organisations mandate and donors' stated 
objective and specific answer to the questions as to whether WTO has clear and explicit policy 
and strategy for collection and use of extra budgetary resource s; how, why and what role do 
the governing bodies or Secretariat play in the strategic direction of trust funds; the Member 
expectation and how satisfied are they (donors, beneficiary); the key factors of the current 
fund management modalities that allow the expectation of donor and beneficiary Member s to 
be met. It appears that a number of these aspects have not been examined explicitly by the 
External Audit even though these are very relevant. Could the External Auditor explain the 
reasons?  
14. Q2: Auditors have at places in the Report mentioned that certain ex amination could not be 
carried out due to lack of access to information necessary to carry out the audit (e.g. para 8). 
Could the auditor specifically highlight what is that necessary information (not maintained or 
not made available by the WTO Secretariat )? 
15. Q3: Auditor has pointed out that general guidelines provide by the Working Group are likely 
to enhance the transparency and management of the funds provided they are translated to 
coherent administrative instruction/specific action [para 26 and 27]. Whe ther the 
recommendations made by the auditor constitute adequate specific actions to implement 
general guidelines provided by the Working Group? Or Auditor would like to make any 
further specific action point in this regard ? 
16. Q4: Observations made in para 3 8, 39 and 45 are profound. Para 46 states the need for 
creating a Steering Committee to implement the Working Group’s proposal. Could Auditor 
elaborate the structure that this Steering Body may have? and what shall be the enablers in 
WTO framework for such  Steering Body to function? Whether this is a prevalent mechanism 
in the IOs? Where should the steering body be housed?  
17. Q5: Para 66 states that it could be useful for the WTO to include rules on the management of 
trust funds’ liquidity (in view of issues r aised in immediate preceding paragraphs thereof). 
Could Audit explain as to what all these proposed Rule cover?  
18. Q6: Para 69 mentions that it would be unacceptable to consider the management of risk 
associated with the Funds operation to be of no concern to  the organisation and that  the 
Organisation 's approach to the risk posed by these funds is therefore even more unsatisfactory 
given the inadequate size of the Office of Internal Oversight in terms of both staffing and 
skills. Para 70 highlights the inadequ acy of MIS. However, Recommendation 3 does not touch 
upon these crucial aspects. Could the auditor s make specific recommendations/actions points 
to address these concerns raised by them and also highlight the best practices in this regard?  
19. Q7: Para 83 states that resources not managed in the framework of the technical assistance 
plan and not included in the CTDs overall review of technical assistance account on an average 
more than 20% of the total volume of technical assistance trust funds.  Could auditor elaborate 
on this point further to drive home the point comprehensively?  
20. Q8: Para 86 mentions that there is no programmatic and strategic document covering 
technical assistance as a whole; there is no single coherent document to report on t echnical 
assistance; thus, there is lack of coherent and comprehensive information. Could auditor make 
specific recommendation/best practice in this regard. Recommendation No. 4 is too generic  WT/BFA/211  
 
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  21. Q9: Recommendation No. 5 in the Auditor’s Report requires furt her elaborations. The intent 
is not very clear. The implication of this recommendation to the regular budget be clearly 
outlined.  
22. Q10: Para 110 summarises significant points relating to need of transparency of cost. In this 
context recommendation No. 6 in the Auditor’s Report raise a fundamental issue and requires 
immediate attention of management (as has been pointed out by the Auditor). In this context, 
could the Auditor high light the practices followed by other international organisations?  
Further, whet her any amendment is required in any Financial Regulation?  Also, what should 
the understanding of full cost of each fund culminate into in terms of good accounting practice?  
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