./. WORLD TRADE  
ORGANIZATION   
WT/BFA/50  
23 November 2000  
 (00-5020)  
    
 
 
 
ANNUAL REPORT (2000) OF THE COMMITTEE ON BUDGET,  
FINANCE AND ADMINISTRATION  
 
 
1. In accordance with the procedures for an annual overview of WTO activities and for reporting 
under th e WTO, adopted by the General Council on 15  November  1995 (WT/GC/M/8, item  11), a 
report on the activities of the WTO Committee on Budget, Finance and Administration in 2000 is 
hereby submitted.  
 
2. It will be recalled that the Committee met on a number of oc casions and has presented reports to 
the General Council on a regular basis.1  This report will then cover the major areas the Committee has 
dealt with in the course of the year to date.  
 
I. ON-GOING RESPONSIBILITIES  
3. The Committee monitored on a regular basis  the financial and budgetary situation of the 
Organization, the receipt of contributions including the implementation of the related schemes and 
measures pertaining to receipt of contributions.  It examined: (i) the Director -General’s Budgetary and 
Financi al Report for 1999 and Report of the External Auditors Thereon; (ii) the Divisional Reporting on 
Objectives and Expenditures for 1999; (iii) the Report on Extra -Budgetary Funds for 1999; and (iv) the 
Director -General's budget proposals for 20012.  In addit ion, it formulated recommendations to the 
General Council on assessments to the budget and advances to the Working Capital Fund subsequent to 
the accessions of new Members to the WTO.  It also considered elements related to personnel 
management and heard p rogress report on the WTO Pension Plan.  
 
II. MAJOR AREAS OF ACTIVITIES  
A. METHOD OF CALCULATION OF CONTRIBUTIONS TO THE WTO BUDGET  
4. Further to questions raised at the time the budget for 2000 was being presented, the Committee 
examined whether it might be possible  to minimize large variations in contributions from one year to the 
next.  In 2000, a Working Group was established to look into the question.  It met on several occasions, 
examined various simulations prepared by the Secretariat, and had a wide exchange o f views.  The 
Working Group came to the conclusion that the homogeneity of statistical data, that is the years taken 
into account for the calculation of contributions, was not only important to minimise the problem which 
had been faced 1999, but that such homogeneity was also fair for the system in general.  The Committee 
examined the report of the Working Group on 28  July 2000 and made recommendations to the General 
 
1Reports: WT/BFA/46 covering the meeting of 13  March 2000; WT/BFA/47 covering the meeting of 
25 May 2000; WT/BFA/48 covering the meeting of 3  July 2000, and WT/BFA/49 covering the meeting of 
28 July 2000 . 
 
2 At the time of writing the present report, discussions on the 2001 budget proposals, as well as t he 
other points contained in WT O/AIR/1383, were continuing.  WT/BFA/50  
Page 2 
 
 
Council contained in paragraph 9 of document WT/BFA/49.  The General Council accepted the 
recommendation at its meeting of 17 and 19 July 2000 (WT/GC/M/57).  
B. VOLUNTARY DONATIONS FROM NON -GOVERNMENTAL SOURCES  
5. The Committee examined the Director -General’s draft proposal concerning the treatment of 
voluntary contribution gifts or donations from the non-governmental sources.  The draft proposal 
provided guidelines and explanations for dealing with such donations.  In view of the fact that extensive 
deliberations would be required to clarify some aspects of the matter, a Working Group was set up to 
continue discussions on the issue.  The Working Group, which was opened to all Members, met on a 
number of occasions starting from 24 July 2000. Subsequent to the finalization of this present report, the 
Committee examined the results of the Working Group whi ch are expected to be considered by the 
General Council at its meeting in December 2000.  
 
C. PERFORMANCE AWARD PROGRAMME  
6.  In the course of 1999, the Committee examined the details of the proposed Performance Award 
Programme.  It was recalled that although Sta ff Regulation 6.5 directed the WTO to introduce the 
performance award programme, the actual introduction of the programme would require amendment of 
the staff rules which currently referred to the system of periodic salary increments or the “step system” 
(Rules 106.3).  Staff Regulation 13.2 called for the General Council’s approval of amendments to staff 
rules “carrying financial implications or creating new rights for staff members”.  Members indicated that 
the performance award programme must be designed  to ensure that the costs remained strictly within the 
2 per cent ceiling.  Discussion on the issue continues as at the writing of this report.  
 
D. EXTERNAL AUDITORS  
7. The Netherlands Court of Audit was appointed as the WTO External Auditor in July 1996 for a 
period of three years i.e. for the accounts relating to the years 1997, 1998, and 1999 .  It indicated that it 
is prepared to continue for 2 more years i.e. 2000 and 2001, but under different financial conditions.  
The Committee examined the issue and recomm ended to the General Council that it extend, for a 
period of 2 years, the mandate of the Netherlands Court of Audit as the WTO External Auditor for the 
audit of the 2000 and 2001 accounts.  The General Council accepted the recommendation in July 2000 
(WT/G C/M/57).  A new tender process will be initiated early in 2001 with a view to select the next 
External Auditor, who will be responsible for the auditing of the accounts as from the year 2002.  
 
 
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