RESTRICTED
WORLD TRADE WT/L/157
5August 1996
ORGANIZATION(96-3042)
Committee onBudget, Finance andAdministration
FINANCIAL RULES
OFTHE
WORLD TRADE ORGANIZATIONWT/L/157
Page2/3
CONTENTS
Page
I. Authority andApplicability
1.1 Reference ......................................... 6
1.2 Applicability ...................................... 6
1.3 Responsibility orimplementation .......................... 6
1.4 Additional instructions tobeissued bythe.................... 6
Deputy Director-General incharge ofFinance ................. 6
1.5 Responsibilities oftheDirector ofFinance and
General Services Division .............................. 6
1.6 Approaches outside theWTO ............................ 6
1.7 Responsibility forfunds from external sources .................. 6
II. Preparation oftheBudget Estimates
2.1 Form ofthebudget estimates ............................. 7
2.2 Responsibility forthepreparation
ofthebudget estimates ................................ 7
2.3 Furnishing ofcostestimates ............................. 7
III. Collection ofContributions andOther Income
3.1 Responsibility forcollection ofcontributions ................... 7
3.2 Accounting forreceipts ................................ 7
3.3 Miscellaneous income ................................. 8
3.4 Proceeds from thesaleofequipment, discounts orrebates .......... 8
3.5 Acceptance ofmonies byofficials .......................... 8
3.6 Furnishing ofofficial receipts ............................ 8
IV. Appropriations andAllocations
4.1 Responsibility oftheDeputy Director-General incharge ofFinance forthe
implementation oftheapproved budget .................... 8
4.2 Responsibility oftheDirector ofFinance andGeneral Services Division
toallocate appropriations inaccordance withtheFunctional Budget ... 9
4.3 Periodic review oftheexpenditure position .................... 9
4.4 Transfers between items within theapproved regular budget ......... 9
V. Control ofObligations
5.1 Obligations tobeincurred onlybydulyauthorized officials ......... 9
5.2 Proposals ordrafts having financial and/or budgetary implications ..... 9
5.3 Control ofobligations ................................. 10
5.4 Obligations tobeincurred inconformity withthebudget ........... 10
5.5 Objection toproposed obligations .......................... 10
5.6 Adjustments ofobligations .............................. 10WT/L/157
Page4
VI. Presentation andAudit ofClaims
6.1 Payments tobemade onthebasis ofclaims ................... 11
6.2 Claims tobesupported byacopyoftheorder .................. 11
6.3 Time-limits forthepresentation ofclaims ..................... 11
6.4 Audit ofclaims ..................................... 11
6.5 Claims tobeaccompanied byreceiving reports ................. 12
6.6 Safeguards ........................................ 12
6.7 Objection toaclaim .................................. 12
VII. Payments
7.1 Vouchers tosupport payments ............................ 12
7.2 Payments tobemade todulyentitled persons .................. 13
7.3 Officials authorized tomake payments ....................... 13
7.4 Determination ofratesofremuneration
andreimbursement .................................. 13
7.5 Advance andprogress payments ........................... 13
7.6 Time-limits forpayments ............................... 14
7.7 Currencies ofaccounting andcurrency
conversion rates .................................... 14
7.8 Responsibility forpayments ............................. 15
7.9 Exgratia payments ................................... 15
VIII. Management ofFunds
8.1 Treasury management ................................. 15
8.2 Monies tobedeposited inbanks ........................... 16
8.3 Operation ofbankaccounts .............................. 16
8.4 Investment offunds ................................... 16
8.5 Lossofcash-cases offraud ............................. 16
8.6 Exchange ofcurrencies ................................ 16
IX. Designation ofCashiers andAdvances ofFunds
9.1 Designation ofcashiers ................................ 16
9.2 Establishment ofoperating cashadvances (including
Petty Cash advances) ................................. 16
9.3 Accounting foroperating cashadvances ...................... 17
9.4 Other cashadvances .................................. 17
X. Procurement
10.1 Authorized contracting officials ........................... 17
10.2 Contracts Committee ................................. 17
10.3 Competitive bidding andadvertising ........................ 17
10.4 Exceptions toadvertising requirements ....................... 18
10.5 Awarding ofcontracts ................................. 18
10.6 Purchase tobemade inwriting ........................... 18
10.7 Written findings ..................................... 18WT/L/157
Page5
XI. Property
11.1 Property records ..................................... 19
11.2 Physical inventories .................................. 19
11.3 Useofproperty orservices oftheWTO ...................... 19
11.4 Treatment ofcases oflossofassets, fraud or
unrecoverable debt .................................. 19
11.5 Accounting fordonated property .......................... 20
11.6 Disposal ofsurplus property ............................. 20
XII. TheAccounts
12.1 Responsibility formaintaining theaccounts .................... 20
12.2 Principal accounts .................................... 20
12.3 Subsidiary accounts ................................... 20
Appendix
Decision oftheGeneral Council of11July1995 (WT/GCM/5) onprocedure
fordecisions having financial implications which maybetaken byWTO Bodies ..... 21WT/L/157
Page6
I.AUTHORITY AND APPLICABILITY
1.1 Reference
These Rules areestablished pursuant toRegulation 3oftheFinancial Regulations ofthe
World Trade Organization (WTO).
1.2 Applicability
These Rules shallapply totheregular budget oftheWTO andtoallother funds placed atthe
disposal oftheWTO, except insofarastheapplicability ofspecial regulations andrules forsuch
other funds isrecognised bytheDeputy Director-General incharge ofFinance.
1.3 Responsibility forimplementation
TheDeputy Director-General incharge ofFinance isresponsible totheDirector-General for
theapplication andimplementation ofthese Rules. Hemaydelegate anyspecific authority vested in
himpursuant tothese Rules, asappropriate, toother officials oftheWTO.
1.4 Additional instructions tobeissued bytheDeputy Director-General incharge ofFinance
Within theframework oftheFinancial Regulations andthese Rules, theDeputy Director-
General incharge ofFinance mayissue suchadditional instructions orestablish suchprocedures as
shallbenecessary toensure effective internal financial control, sound administration offunds, and
theexercise ofeconomy. Nochanges insuchinstructions orprocedures shallbemade without the
approval oftheDeputy Director-General incharge ofFinance.
1.5 Responsibilities oftheDirector ofFinance andGeneral Services Division
TheDirector oftheFinance andGeneral Services Division isresponsible totheDeputy
Director-General incharge ofFinance fortheperformance and/or supervision ofallbudgetary,
financial andaccounting operations.
1.6 Approaches outside theWTO
Noapproach shallbemade outside theWTO orwithin theWTO withaview toobtaining
funds orresources, orexemptions from existing financial regulations, rules orprovisions ofthe
WTO, except withtheprior written authorization oftheDirector-General, theDeputy Director-
General incharge ofFinance ortheDirector ofFinance andGeneral Services Division.
1.7 Responsibility forfunds from external sources
Noofficial mayaccept responsibility forthehandling ormanagement offunds belonging to
agovernment, ortoanyother body ofanofficial orquasi-official nature withwhich heisassociated
byreason ofhisstatus asanWTO official, unless hehasbeenspecifically authorized inadvance to
dosoonthebasis ofadecision bytheDirector-General.WT/L/157
Page7
II.PREPARATION OFTHE BUDGET ESTIMATES
2.1 Form ofthebudget estimates
Thebudget estimates oftheWTO shallbedrawn upasprescribed inRegulations 5to9of
theFinancial Regulations. Presentation ofthebudget estimates shallbebothinanoverall formand,
totheextent possible, broken down according todivisions, i.e.inafunctional format.
2.2 Responsibility forthepreparation ofthebudget estimates
TheDeputy Director-General incharge ofFinance, withtheassistance oftheDirector of
Finance andGeneral Services Division, shallberesponsible totheDirector-General fortheprovision
ofadvice onbudget andfinancial policy andforthepreparation oftheestimates ofincome and
expenditure included inthebudget proposals andbudget documents forsubmission totheCommittee
onBudget, Finance andAdministration andtotheGeneral Council. Forthispurpose heshall
establish suchprocedures, criteria anddeadlines asmayberequired toassure thetimely presentation
ofsound andrealistic budget estimates conforming totheFinancial Regulations.
2.3 Furnishing ofcostestimates
TheFinance andGeneral Services Division shallberesponsible forthepreparation ofallcost
estimates thatmayberequired inconnection withtheactivities oftheWTO including estimates of
thecostofallprojects, trustfunds, meetings, staffsalaries andmissions. Noofficial shallissue cost
estimates foruseoutside theWTO without prior written clearance oftheestimates bytheDirector
oftheFinance andGeneral Services Division.
III.COLLECTION OFCONTRIBUTIONS
AND OTHER INCOME
3.1 Responsibility forcollection ofcontributions
TheDirector oftheFinance andGeneral Services Division shallberesponsible totheDeputy
Director-General incharge ofFinance forcollecting andaccounting forcontributions duefrom
Members, asprescribed inRegulations 12to17oftheFinancial Regulations.
3.2 Accounting forreceipts
(a) Allreceipts shallbebrought toaccount withtheshortest delay possible. Assessed
contributions received bytheWTO shallbeaccounted asofthedateofreceipt inthe
WTO Bank Account.
(b) Voluntary contributions, gifts ordonations, which directly orindirectly involve
additional financial liability fortheWTO, shallbekeptinasuspense account until
theiracceptance bytheCommittee onBudget, Finance andAdministration hasbeen
authorized inaccordance withRegulation 19oftheFinancial Regulations.WT/L/157
Page8
3.3 Miscellaneous income
Miscellaneous income consists ofthefollowing categories ofreceipts accruing totheWTO:
(a) receipts from thesaleofpublications andtheprovision ofservices;
(b) thedifference between gains andlosses onexchange;
(c) savings onprevious year'soutstanding obligations;
(d) overhead onTrust Funds;
(e) receipts from therental ofmeeting rooms andoffice space;
(f) assessments from Observer Countries;
(g) receipts ofinterest other thanthatrequired tobecredited totheWorking Capital
Fund inaccordance withRegulation 33ortobecredited toMembers inrespect of
theEarly Payment Encouragement Scheme;
(h) refunds ofexpenditure ofprior financial periods;
(i) WTO cheques remaining uncashed foraperiod oftwelve months after thedate
drawn;
(j) other miscellaneous cashreceipts.
3.4 Proceeds from thesaleofequipment, discounts orrebates
Proceeds from thesaleofequipment maybesetoffagainst thepurchase ofreplacements
provided thatthesaleandpurchase occur during thesame financial period; otherwise theproceeds
shallbetreated asmiscellaneous income. Proceeds fromdiscounts orrebates shallbecredited tothe
corresponding budgetary account inorder tooffset expenditures ofsame nature.
3.5 Acceptance ofmonies byofficials
(a) Wherever possible payments tothecredit oftheWTO shallbedirected toaWTO
bankaccount.
(b) TheDeputy Director-General incharge ofFinance shalldesignate those officials who
areauthorised toaccept money onbehalf oftheWTO andtoissue official receipts.
(c) Anyother official receiving money onbehalf oftheWTO mustimmediately remit it
infulltoanofficial authorized toaccept money or,where thisisnotpossible, deposit
itinaWTO bankaccount. Fulldetails ofsuchdeposits shallbesentimmediately to
theDirector ofFinance andGeneral Services Division.
3.6 Furnishing ofofficial receipts
Anofficial receipt shall begiven forallmonies received either incashorbycheque.
Receipts shallbedrawn upinduplicate, andacopyoftheoriginal shallberetained.
IV.APPROPRIATIONS AND ALLOCATIONS
4.1 Responsibility oftheDeputy Director-General incharge ofFinance fortheimplementation
oftheapproved budget
TheDeputy Director-General incharge ofFinance isresponsible totheDirector-General for
ensuring thattheexpenditure oftheWTO under theregular budget remains within theappropriations
asvoted andthatsuchappropriations areusedonlyforthepurposes approved bytheGeneral Council.WT/L/157
Page9
4.2 Responsibility oftheDirector ofFinance andGeneral Services Division toallocate
appropriations inaccordance withtheFunctional Budget
TheDirector ofFinance andGeneral Services Division shallinform inwriting theDirectors
oftheamounts allocated totheir divisions inaccordance with theFunctional Budget with the
constraints limiting theuseofthese appropriations.
4.3 Periodic review oftheexpenditure position
(a) TheFinance andGeneral Services Division shall monitor theextent towhich
allocations areused andprepare reports fortheDirector-General onamounts
currently allocated, obligated andexpended, andexpected future expenditure, under
theallocations.
(b) Divisional Directors shallbeinformed regularly oftheexpenditures andunliquidated
obligations recorded against their ownallocations provided under theFunctional
Budget.
4.4 Transfers between items within theapproved budget
Transfers between sections oftheexpenditure budget shallbehandled through theinternal
control system, subject toareport submitted bytheSecretariat totheGeneral Council forapproval
attheendofthefinancial period.
V.CONTROL OFOBLIGATIONS
5.1 Obligations tobeincurred onlybydulyauthorized officials
Nocontract shallbeconcluded andnoorder shallbeplaced onbehalf oftheWTO except by
anofficial towhom aformal authority toincur suchobligations hasbeendelegated bytheDeputy
Director-General incharge ofFinance.
5.2 Proposals ordrafts having financial and/or budgetary implications*
(a) Anydraft paper fortheGeneral Council which contains aproposal likely tohave
direct orindirect financial orbudgetary implications shallberouted bytheoriginating
unit, ortheofficer towhom itreports, totheDirector ofFinance andGeneral
Services Division forfinancial evaluation andclearance before being submitted tothe
Deputy Director-General incharge ofFinance.
(b) Advance clearance andfinancial evaluation mustbeobtained before seeking thefinal
approval onanydocument orcommunication having adirect orindirect financial
implication.
____________
*SeeAlsoAppendix.WT/L/157
Page10
5.3 Control ofobligations
(a) Allcontracts, appointments, mission orders, purchase orders, orother documents by
which afinancial obligation istobeincurred onbehalf oftheWTO must be
submitted inadvance totheFinance andGeneral Services Division forfinancial
clearance under Regulation 42oftheFinancial Regulations except asprovided in
subparagraph (d)below.
(b) Anauthorised official oftheFinance andGeneral Services Division shallreview the
obligating documents submitted inthelightoftheapplicable financial regulations and
rules, theapproved budget, andtheavailable balances intherespective allocations.
Heshallalsoassure himself thattheprinciples ofsound economy aremaintained.
Iftheobligating document conforms withtheabove requirements, itshallbecertified
byanauthorised official oftheFinance andGeneral Services Division thatfunds are
available andhave been reserved tomeet theresulting expenditure. Approved
obligations shallberecorded bytheFinance andGeneral Services Division.
(c) Noobligating document shallbereleased outside theWTO without thecertification
byanauthorised official oftheFinance andGeneral Services Division thatfunds are
available.
(d) Anauthorised official oftheFinance andGeneral Services Division mayissue lump-
sumcertificates tocover minor routine purchases. Attheendoftheperiod forwhich
thecertificate isissued, itshallbereturned together witharecord oftheobligation
incurred against it,andshallbesupported bycopies ofthecorresponding obligating
documents. Alump-sum certificate shall berecorded intheaccounts asavalid
obligation, which shall beadjusted toactual obligations when thecertificate is
returned.
5.4 Obligations tobeincurred inconformity withthebudget
Obligations shallbeincurred onlyinstrictconformity withtherelevant budget. Allobligating
documents submitted forfinancial clearance shallbeaccompanied byanindication oftheappropriate
accounting classification. Incaseofdoubt, thecorrect classification against which anycharge isto
bemade shallbedetermined bytheChief oftheBudget andControl Section.
5.5 Objection toproposed obligations
IftheDirector ofFinance andGeneral Services Division cannot approve anobligating
document submitted forcertification heshallstatehisobjections inwriting. Iftherequesting official
doesnotagree withtheobjection, thematter shall bereferred totheDeputy Director-General in
charge ofFinance fordecision.
5.6 Adjustments ofobligations
Ifpartorallofanamount recorded asanobligation isnolonger required forthepurpose
originally foreseen thenecessary adjustment shallbemade immediately.WT/L/157
Page11
VI. PRESENTATION AND AUDIT OFCLAIMS
6.1 Payments tobemade onthebasis ofclaims
(a) Except forthepayment ofsalaries, wages, regularly established allowances and
amounts dueunder external collaboration contracts withindividuals, nopayment shall
beeffected unless claimed bythepayee. Payments dueunder external collaboration
contracts withindividuals shallbemade onthebasis ofpayment requests submitted
byauthorised officials; suchrequests shallbetreated inthesame wayasclaims.
(b) Foreachclaim submitted, theclaimant shallcertify thattheclaim isfairandcorrect
andthatpayment hasnotyetbeenreceived.
(c) Where special forms forclaims exist, claims must bepresented onthese forms.
6.2 Claims tobesupported byacopyoftheorder
Claims submitted forpayment must normally besupported byacopy oftherelevant order
showing, where applicable, theregistration number ofthecorresponding obligation.
6.3 Time-limits forthepresentation ofclaims
(a) Officials authorised toincur obligations shall ensure thepresentation, within a
reasonable period, ofallclaims payable.
(b) Particular careshallbeexercised toprevent arrear claims being made aftertheclose
ofthefinancial period.
(c) Claims inrespect ofofficially authorised travel shallbesubmitted within onemonth
aftersuchtravel hasbeencompleted.
(d) Claims forovertime should besubmitted within oneweek aftersuchovertime has
beencompleted.
(e) Claims involving discounts forprompt payment shall beflagged andshall be
processed withtheminimum delay possible.
6.4 Audit ofclaims
(a) TheCertifying Officer shallsubject eachclaim tocareful scrutiny before authorising
payment, andshallmaintain records ofallclaims processed forpayment.
(b) Noclaim shall beauthorised forpayment unless itsvalidity hasbeen clearly
established.
(c) Officials authorised toincur obligations shallsupply theCertifying Officer withany
information required inconnection withtheaudit ofclaims.WT/L/157
Page12
6.5 Claims tobeaccompanied byreceiving reports
(a) Claims based onthefurnishing ofgoods orservices shall besubmitted tothe
Certifying Officer together withacertified receiving report stating whether thegoods
orservices havebeenfurnished inaccordance withthespecifications oftheorder,
andwhether theclaim isadministratively approved forpayment. Inaddition, the
receiving officer shallcertify thatthegoods received havebeenentered intheregister
ofstocks orinventory.
(b) TheDeputy Director-General incharge ofFinance maywaive therequirement of
receiving reports inthecaseofstandard services suchaspublic utilities, etc.
(c) Forgoods delivered toaplace outside Geneva, payment maybeauthorized upon
receipt ofdocuments provided thatthegoods were dispatched appropriately insured
totheir destination. Adulyexecuted receiving report must beforwarded tothe
Finance andGeneral Services Division immediately upon receipt ofgoods.
(d) InthecaseofRule6.5(c) theofficial forwarding theclaim shallcertify thatthegoods
were dispatched withappropriate insurance coverage.
6.6 Safeguards
(a) Officials authorised toincur obligations andtheCertifying Officer shall takeall
necessary steps toavoid duplicate payments ofclaims.
(b) Except where thisisunavoidable, noofficial shallbeassigned simultaneously anytwo
ofthefollowing functions: purchasing and/or acceptance ofgoods orservices,
auditing ordisbursing.
6.7 Objection toaclaim
(a) When theDirector ofFinance andGeneral Services Division objects tothepayment
ofaclaim infullorinpart, heshall communicate hisobjection totheofficial
presenting theclaim. Iftheofficial doesnotagree withtheobjection, hemayappeal
through proper channels totheDeputy Director-General incharge ofFinance.
(b) IftheDeputy Director-General incharge ofFinance decides thataclaim istobepaid
notwithstanding anobjection bytheDirector ofFinance andGeneral Services
Division, hisdecision shallbereported totheexternal auditor.
VII. PAYMENTS
7.1 Vouchers tosupport payments
(a) Nopayments shallbeeffected without satisfactory supporting documents. Except for
payments made fromcashadvances these documents mustshow thatthepayment has
beenapproved byadulyauthorised Certifying Officer.
(b) Whenever claims arereceived asaresult ofawritten order bytheWTO, acopyof
theorder shallbeincluded withthesupporting document.WT/L/157
Page13
(c) Noverbal authority shallbeaccepted formaking anypayments.
7.2 Payments tobemade todulyentitled persons
(a) Payments shallbemade onlytothepersons towhom theyaredue,ortotheirlegal
representatives. Apayment shallnormally bemade toabankaccount inthename
oftheperson towhom payment isdue.
(b) TheDirector ofFinance andGeneral Services Division mayrefuse toeffect payment
ofanysalary, allowance orother payment toathirdparty claiming thepayment on
behalf oftheperson towhom itisdue.Ifpayments aremade tosuchthirdparty or
alegalrepresentative, thenature oftheauthority under which suchpayment hasbeen
made shallbestated onthesupporting document. Thecession orother authority shall
either beattached tothesupporting document, ortheDirector ofFinance andGeneral
Services Division shallcertify onthesupporting document thatasufficient authority
wasproduced.
7.3 Officials authorized tomake payments
Allpayments shall bemade byauthorised officials oftheFinance andGeneral Services
Division afterapproval bytheCertifying Officer, except forpayments made by:
(a) members ofthestafftowhom cashisadvanced forthepurposes oftheWTO;
(b) representatives oftheUnited Nations Development Programme when acting asagents
fortheWTO;
(c) anyother person specifically designated forthispurpose bytheDeputy Director-
General incharge ofFinance.
7.4 Determination ofratesofremuneration andreimbursement
(a) Salaries andwages shallbepaidinaccordance withtherelevant provisions ofthe
StaffRegulation, orother applicable rules. Allamounts deducted fromsalaries shall
bepaidassoon aspracticable totheaccounts towhich these amounts aredue.
Contributions tothepension fundshallbetransferred before theendofthemonth for
which theyaredue.
(b) Reimbursement fortravel expenses andpayment ofanyallowances tomembers ofthe
staffshall beeffected inaccordance withtheStaff Regulations orother applicable
rules.
7.5 Advance andprogress payments
TheDirector ofFinance andGeneral Services Division mayauthorise theinclusion ina
contract ofprovision forsuchadvance payments orpartial payments forwork inprogress asmaybe
required bynormal commercial practice andtheinterests oftheWTO. Except forcases where
specific provision ofthisnature hasbeenincluded inacontract withtheapproval oftheDirector of
Finance andGeneral Services Division andforcases covered byRules 6.5(c) and6.5(d), payment
maybemade onlyaftertheservices orgoods havebeenreceived. Claims foradvance andprogress
payments shallbepresented inaccordance withRule6.5.WT/L/157
Page14
7.6 Time-limits forpayments
(a) Once ithasbeen ascertained thatapayment isinorder, itshall bemade with
reasonable dispatch.
(b) Proper attention shallbepaidtoclaims offering acashdiscount forprompt payment.
(c) Payments made under theregular budget after thedatesetfortheclosing ofthe
accounts ofagiven financial period arenotallowed asacharge against thatfinancial
period unless anoutstanding obligation dulydocumented hasbeenestablished.
7.7 Currencies ofaccounting andcurrency conversion rates
(a) Theaccounts oftheWTO shallbemaintained inSwiss francs ;however subsidiary
accounting records maybemaintained inother currencies.
(b) Theconversion ratesusedforinternal accounting purposes, called theWTO rateof
exchange, shallbesetbytheDeputy Director-General incharge ofFinance.
(c) Contributions received inacurrency other thantheSwiss franc shallbeconverted and
credited atthebankrateofexchange atthetimeofreceipt indicated bythevalue date
andrecorded attheWTO rateofexchange. Differences inexchange shall be
accounted forunder (j)below.
(d) Salaries shall bepaidinSwiss francs. Thecurrencies inwhich theallowances of
WTO officials maybepaid(whatever thecurrency interms ofwhich theentitlement
isexpressed) shall beestablished bytheDeputy Director-General incharge of
Finance.
(e) When allowances arepaidinacurrency other thanthatinwhich theyareexpressed,
therateofexchange used forthepayment shall betheWTO rateofexchange
applicable atthetimeofpayment.
(f) Advances relating tosalaries, allowances (except withregard toEducation Grants)
andexpenses ofofficials forwhich theentitlement isexpressed interms ofacurrency
other thantheSwiss franc, shall berecorded inSwiss francs attheWTO rateof
exchange applicable atthetimeoftheadvance.
(g) Education Grants:
(i) Advances relating toEducation Grants andmade inUSdollars shall be
recorded inSwiss francs attheWTO rateofexchange;
(ii) except for(g)(i)above, allother advances made forEducation Grants in
currencies other thantheSwiss franc shallberecorded inSwiss francs atthe
bankrateofexchange applicable atthetimeoftheadvances;
(iii) finalsettlement willbecalculated astoeffect fullrecovery oftheamount
recorded.WT/L/157
Page15
(h) When expenses incurred byofficials orother persons towhom apayment isduefrom
theWTO arereimbursed bytheWTO inacurrency other thanthatinwhich the
expenses were incurred, theconversion rate used forthepurpose ofthe
reimbursement shallbetheWTO rateofexchange applicable onthedateonwhich
theexpenses were incurred, except inthefollowing circumstances:
(i) incases oftrustfunds where thecoordinator hadtopurchase thecurrency
himself atagiven dateandproduces abank slipshowing therateatwhich
itwasobtained, theconversion shallbemade atthatrate;
(ii) incases oftrustfunds where arelated advance hasbeenmade inacurrency
other thanthatinwhich theexpenses arereimbursed bytheWTO, the
expenses incurred uptotheamount oftheadvance shallbeconverted atthe
rateofexchange atwhich theadvance wassecured.
(i) Where athirdcurrency isinvolved, thelocalcurrency obtained bytheconversion of
thesecond currency shallbetaken intoaccount attheWTO rateofexchange andany
difference asalossorgainonexchange. Where anexchange rateforathird
currency hasnotbeenestablished, itshall becalculated byapplying thecross-rate
withthesecond currency.
(j) Exchange gains andlosses resulting fromtherevaluation ofregular budget assets and
liabilities heldincurrencies other thantheSwiss franc shall beaccounted under
miscellaneous income.
7.8 Responsibility forpayments
Aninstruction from asuperior official shall notrelieve theFinance andGeneral Services
Division from responsibility foranirregular payment, unless theirregularity waspointed outbythe
Finance andGeneral Division totheDirector-General inwriting before thepayment wasmade, and
theobjection overruled. Anysuchoverruling shallbegiven inwriting andshallbereported tothe
external auditor.
7.9 Exgratia payments
TheDirector-General may, onanexceptional basis, authorise suchexgratia payments ashe
deems tobenecessary intheinterests oftheWTO. Astatement ofsuchpayments shallbesubmitted
totheexternal auditor withtherelevant accounts.
VIII. MANAGEMENT OFFUNDS
8.1 Treasury management
TheDirector ofFinance andGeneral Services Division shallberesponsible totheDeputy
Director-General incharge ofFinance forthetreasury management ofallfunds inthecustody ofthe
Director-General.WT/L/157
Page16
8.2 Monies tobedeposited inbanks
Allmonies notimmediately required shallbeplaced innon-speculative accounts insuchbank
orbanks ofinternationally recognised standing astheDeputy Director-General incharge ofFinance
maydesignate.
8.3 Operation ofbankaccounts
Bank accounts shallnormally beoperated jointly bytwoormore officials tobedesignated
bytheDirector-General.
8.4 Investment offunds
(a) Funds available under theregular budget andtheWorking Capital Fund maybe
invested inaccordance withRegulation 34oftheFinancial Regulations.
(b) Other funds forwhich theDirector-General isresponsible shall beinvested in
accordance withanyspecial regulations inforce forsuchfunds, orintheabsence
thereof, insimilar manner tofunds available under theregular budget.
8.5 Lossofcash-cases offraud
Anylossofcashornegotiable instruments andanycaseoffraud, presumption offraud or
attempted fraud must bereported atoncetotheDeputy Director-General incharge ofFinance who
willensure thatappropriate follow-up action istaken inconformity withRule11.4.
8.6 Exchange ofcurrencies
Officials responsible fortheoperation ofWTO bankaccounts, orforholding WTO cashor
negotiable instruments, arenotauthorised toexchange onecurrency foranother except totheextent
required forthetransaction ofofficial business.
IX. DESIGNATION OFCASHIERS AND ADVANCES OFFUNDS
9.1 Designation ofcashiers
Officials whoaretoperform thefunction ofcashier shallbedesignated bytheDirector of
Finance andGeneral Services Division. Theexact duties ofeachcashier shallbenotified tohimin
writing bythedesignating official.
9.2 Establishment ofoperating cashadvances (including Petty Cash advances)
Operating cashadvances (including pettycashadvances) maybemade toofficials designated
bytheDirector ofFinance andGeneral Services Division. Theaccounts foroperating cashadvances
shallbemaintained, normally onanimprest basis, inaformapproved bytheDirector ofFinance and
General Services Division. Theperson issuing anadvance shallspecify inwriting theamount ofthe
advance andthepurposes forwhich itmaybeused. Theamount oftheadvance shallbeheldtothe
minimum compatible withworking requirements.WT/L/157
Page17
9.3 Accounting foroperating cashadvances
(a) Officials towhom operating cashadvances areissued under Rule9.2shallmake use
ofsuchadvances onlyforthepurpose forwhich theadvance wasauthorised andshall
bepersonally responsible therefore.
(b) They shall render accounting asstipulated when theadvance ismade; such
accounting, unless otherwise specified, shallbemade notlessfrequently thanonce
eachmonth. They shall beinaposition atalltimes toaccount fortheadvances.
Cash andnegotiable instruments shallbekeptinsafecustody.
(c) Operating cash advances shall bereplenished upon presentation ofaclaim for
replenishment. These claims shallbemade intheform prescribed bytheDirector
ofFinance andGeneral Services Division ortheperson issuing theadvance andshall
listeachexpenditure made insufficient detail topermit aproper classification and
scrutiny oftheexpenses. Except asmayhavebeenspecified when theadvance was
issued, eachexpenditure listed must besupported byaproper receipt.
9.4 Other cashadvances
Inaddition totheoperating cashadvances referred toinRules 9.2and9.3,theDirector of
Finance andGeneral Services Division maymake suchother cashadvances asmaybepermitted by
theStaffRegulations oradministrative instructions.
X.PROCUREMENT
10.1 Authorized contracting officials
Contracts forthepurchase ofgoods andservices shallbeentered intoonbehalf oftheWTO
byofficials dulyauthorised bytheDeputy Director-General incharge ofFinance.
10.2 Contracts Committee
AContracts Committee chaired bytheDirector ofFinance andGeneral Services Division will
meet toconsider purchases falling under theterms ofRule10.3. Areport willbemade foreach
meeting oftheCommittee.
10.3 Competitive bidding andadvertising
(a) Except asprovided inRules 10.3(c) and10.4, whenever asingle purchase ofgoods
orservices islikely toexceed 30,000 Swiss francs ortheequivalent, tenders fromat
least three suppliers shall besought byinvitations tobidorbynewspaper
advertisement.
(b) Ifasingle purchase ofgoods orservices isnotlikely toexceed 30,000 Swiss francs
ortheequivalent, such tenders maybesought; alternatively, anassessment of
competitive prices shallbemade whenever possible.WT/L/157
Page18
(c) Rule 10.3(a) shall notapply toemployment contracts ortoexternal collaboration
contracts withindividuals orforsupply oftheservices ofaparticular individual. The
financial criteria andprocedures applicable tosuchcontracts shallbeapproved bythe
Deputy Director-General incharge ofFinance.
10.4 Exceptions toadvertising requirements
TheDeputy Director-General incharge ofFinance may waive theapplication ofthe
Rule10.3(a) incases where hedecides intheinterest oftheWTO todoso,andinparticular:
(a) when theprices orrates arefixed pursuant tolegislation orbypublic regulatory
bodies orwhen forother reasons there isnocompetitive market forthegoods or
services required;
(b) when thepurchases fallwithin anapproved planofstandardisation ofgoods or
supplies which renders competition impracticable;
(c) when theexigencies oftheservice donotpermit thedelay attendant upon theissue
ofinvitations tobid;
(d) when themandatory useofspecific currencies renders thisimpracticable;
(e) when competitive bidding hasfailed togivesatisfactory results;
(f) when thecontract covers research work tobecarried outbyanon-profit-making
institution;
Arecord shallbemaintained ofallcases inwhich theapplication ofRule10.3(a) hasbeen
waived.
10.5 Awarding ofcontracts
Wherever tenders havebeensought oranassessment ofcompetitive prices hasbeenmade,
contracts shallnormally beawarded tothesupplier quoting thelowest price foranacceptable offer.
However, when theinterests oftheWTO sorequire, anyorallofthetenders mayberejected.
Where atender isrejected, under theprovisions ofthisrule,thereasons forsuchrejection shallbe
recorded.
10.6 Purchase tobemade inwriting
(a) Allpurchases orcontracts shallbemade inwriting, except fordirect cashpurchases
made inaccordance withRule9.2.
(b) Where foranyreason immediate cashpayment cannot bemade forgoods orservices
ordered verbally, theorder must beconfirmed inwriting without delay.
10.7 Written findings
Eachdetermination ordecision required ofanauthorised purchasing official bytheprovisions
ofthese rules shallbesupported bythewritten findings ofsuchofficial. Thewritten findings shall
beplaced intheappropriate files.WT/L/157
Page19
XI. PROPERTY
11.1 Property records
(a) Adequate records shall bemaintained ofrealproperty, non-expendable and
expendable equipment, supplies andmaterials received, issued, soldorotherwise
disposed of,andremaining onhand. TheDeputy Director-General incharge of
Finance shallestablish thenature andextent oftherecords tobemaintained forthe
purposes ofthisRule.
(b) Therecords maintained inrespect ofsupplies andproperty accounts shallinallcases
indicate theofficial accountable foreachitem.
(c) Control accounts shall bemaintained recording thetotal value ofcapital assets
purchased andsold, orotherwise acquired anddisposed of.
11.2 Physical inventories
Physical inventories shallbetaken ofallsupplies, equipment orother property oftheWTO,
orentrusted tothecharge oftheWTO, atsuchintervals asmaybedeemed necessary bytheDeputy
Director-General incharge ofFinance toensure adequate control oversuchproperty.
11.3 Useofproperty orservices oftheWTO
(a) Theproperty ortheservices oftheWTO shall notbeusedforprivate purposes
except where specifically authorised intheinterest oftheWTO bytheDirector of
Finance andGeneral Services Division.
(b) TheDirector ofFinance andGeneral Services Division shalldetermine theamounts
duetotheWTO fortheuseofitsproperty orservices.
(c) Goods orservices oftheWTO maybeprovided toMembers, theUnited Nations,
other specialised agencies, orother organisations onsuchterms andconditions as
maybeappropriate ineachcase.
11.4 Treatment ofcases oflossofassets, fraud orunrecoverable debt
(a) TheDirector ofFinance andGeneral Services Division mayauthorise losses ofcash,
stores orother assets notexceeding theequivalent of5,000 Swiss francs ineachcase
tobewritten offifinhisjudgement thecostofrecuperating thelosswould exceed
theamount tobewritten off,orifitisveryunlikely thataction torecuperate theloss
would besuccessful. TheDeputy Director-General incharge ofFinance may
authorize thewriting-off oflosses exceeding theequivalent of5,000 Swiss francs.
(b) Alllosses which arewritten offshallbeincluded intheannual financial statements
andsubmitted totheexternal auditor withtherelevant accounts.
(c) TheDeputy Director-General incharge ofFinance shallfixtheresponsibility forthe
loss,ifany,attaching toanyofficial oftheWTO. Such official mayberequired to
reimburse thelosseither partially orinfull,irrespective ofwhether thelossis
covered byinsurance ornot.WT/L/157
Page20
(d) Anycaseoffraud, presumption offraud orattempted fraud mustbereported tothe
Director-General through theDeputy Director-General incharge ofFinance.
(e) Amounts written offandsubsequently recovered aftertheclose ofthefinancial period
inwhich thewriting-off occurred shallbetreated asmiscellaneous income.
11.5 Accounting fordonated property
Goods received andaccepted bytheWTO asgiftsorentrusted tothecharge oftheWTO,
shallbeaccounted forinthesame manner asother goods acquired bytheWTO.
11.6 Disposal ofsurplus property
Surplus property having residual commercial value shall bedisposed ofbysaleafter
competitive bidding unless theDeputy Director-General incharge ofFinance intheinterest ofthe
WTO authorises adifferent method ofdisposal.
XII. THE ACCOUNTS
12.1 Responsibility formaintaining theaccounts
Theaccounts shallbemaintained bytheFinance andGeneral Services Division asprescribed
inChapter IXoftheFinancial Regulations.
12.2 Principal accounts
Theprincipal accounts shallconsist of:
(i) Statement ofbudgetary expenditure;
(ii) Income andexpenditure account;
(iii) Surplus account;
(iv) Statement ofassets andliabilities;
(vi) Separate accounts fortheWorking Capital Fund andforanytrustfunds orspecial
accounts.
12.3 Subsidiary accounts
TheDirector ofFinance andGeneral Services Division mayarrange forsubsidiary accounts
tobemaintained inother services asrequired byday-to-day operations.WT/L/157
Page21
Appendix
Decision oftheGeneral Council of11July1995 (WT/GCM/5)
ontheprocedure fordecisions having financial implications
which maybetaken byWTO Bodies
WTO Bodies shall, before adecision istaken which mayhavefinancial implications, inform
theChairman oftheCommittee onBudget, Finance andAdministration, andidentify, insofaras
possible, areas intheirsphere ofcompetence where compensatory savings could beachieved. Onthe
basis oftheanalysis made bytheFinance andGeneral Services Division theCommittee willthen
examine thefinancial implications andproposed funding, including theidentification ofexisting WTO
activities where savings could beachieved forthefirststart-up yearandforthefollowing on-going
year(s), andforward suchinformation totheGeneral Council. With fullknowledge ofthefinancial
implications andproposed funding, theGeneral Council willthentakeafinaldecision.