RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/54
15 August 2001
(01-4018)
Committee on Budget, Finance and Administration
REPORT OF THE MEETING HELD ON 16 JULY 2001
1. The WTO Committee on Budget, Finance and Administration met on 16 July 2001 under the
chairmanship of Ambassador Mr. M. Supperamaniam from Malaysia.  The terms of reference andcomposition of the Committee are set out in document WT/L/44/Rev.1.  The agenda contained in
document WTO/AIR/1589 was adopted with two additional points from the Secretariat under item
“Other Business”: (i) the WTO building facilities and (ii) the trust fund to facilitate the participation
of Least Developed Countries (LDCs) in the Fourth Ministerial Conference in Doha.  In addition, the
Chairman provided information regarding the Working Group on the Selection of the ExternalAuditor.
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 30 JUNE 2001
C
ASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS (CRP(01)07 AND
WTO/BFA/SPEC/61)
INSTALMENT PAYMENTS FOR COUNTRIES IN ARREARS (CONTRIBUTIONS FROM 1987 AND EARLIER
YEARS ) (CRP(01)08)
CONTRIBUTIONS OF OBSERVER COUNTRIES TOWARDS THE COST OF SERVICES PROVIDED BY THE
SECRETARIAT (CRP(01)09)
HUMAN RESOURCES QUESTIONS : ORAL REPORT
2. A member of the Secretariat presented reports on the cash situation and statement of
outstanding contributions as at 30 June 2001, the instalment payments for countries in arrears, and the
contributions of Observers countries towards the cost of services provided by the Secretariat.  The
total contributions received from Members amounted to CHF 100,851,681 while contributions
received from Observers amounted to CHF 505,014.  The Working Capital Fund stood at
CHF 8,106,085.  Since 30 June 2001, Bangladesh, Cost a Rica, Italy, and Sierra Leone had made
payments.  As of 30 June 2001, there were two Members in Category I and five in Category II, whilein Category III there were two and in Category IV, eighteen.
3. Another member of the Secretariat provided a progress report in the field of human resources.
Since the last meeting, a total of three candidates for the new posts created for 2001 had been
selected.  Decisions on four further candidates would be taken shortly.  With regard to the
Performance Award System, the initial training of the staff on the new system was completed, and atpresent the divisions were engaged in the next phase of this process, which was the initial setting of
objectives for individual staff members.  At the same time, the necessary adjustments were being
made to the payroll software.  Concerning the Pension Plan, the Management Board of the Pension
Plan, had met twice since the last report.  The Board had approved a contract for the outsourcing of
the administration of the Pension Plan to a specialist firm, and had agreed to the establishment of anInvestment Committee.  The market value of the assets of the Pension Plan stood at approximately
CHF 192 million at the end of May 2001.  Informative papers on the nationalities and breakdown of
WTO staff members by gender were also distributed to the Members.WT/BFA/54
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4. As requested by Members, the Secretariat would provide, in future, a written human resources
progress report in advance.  The Secretariat also  would provide for the next meeting the following
information: (i) total number of staff members represented in the WTO broken down by nationality,
grade, occupational grouping (professional or support) and Division1; and (ii) documentation on
human resources policies.
5. The Committee took note of the reports.
II. FINANCIAL MATTERS: DIRECTOR-GENERAL’S BUDGETARY AND
FINANCIAL REPORT FOR 2000 AND REPORT OF THE EXTERNAL AUDITOR
THEREON;  DIVISIONAL REPORTING ON OBJECTIVES AND EXPENDITURES FOR
2000;  AND REPORT ON EXTRA-BUDGETARY FUNDS FOR 2000
6. The Chairman apologised to the Committee of the fact that the Director-General’s Budgetary
and Financial Report for 2000 and Report of the External Auditor thereon (WT/BFA/W/57) had not
yet been distributed to the Members.  The delay was due to two factors: (i) the team of auditors from
the Dutch Court of Audit was obliged to defer their examination of the 2000 accounts, which was
originally scheduled for April, until May due to a scheduling conflict;  and (ii) related to the delay was
the fact that, as a result of administrative procedures, the External Auditor was only in a position tofinalise and sign their report on 13 July 2001.
7. As a result, a member of the Secretariat could only present an informal introduction of the
three reports: (i) Director-General’s Budgetary and Financial Report for 2000 and report of the
External Auditor thereon(WT/BFA/W/57), (ii) Divi sional Reporting on Objectives and Expenditures
for 2000 (WT/BFA/W/58), and (iii) Report on Extr a-Budgetary Funds for 2000 (WT/BFA/W/59).  He
indicated that the overall budgetary savings under the WTO Secretariat amounted to CHF 1.7 million,
and that under the Appellate Body and its Secretariat, CHF 353,000.  The overall 2000 surplus
amounted to CHF 3.4 million.  The Director-General  would submit a proposal on the utilization of the
2000 surplus at the same time of the presentation of the 2002 Budget Estimates.  He also briefly
highlighted the comments of the auditors.  Document WT/BFA/W/58 provided assessment on
reaching the stated divisional objectives for 2000 as well as the divisional expenditures against
budget.  The presentation was a step in the WTO’s implementation of results-based budgeting.
Document WT/BFA/W/59 provided detailed info rmation on Extra-Budgetary Funds on a fund-by-
fund basis.
8. In response to a point raised by a Member of the Committee, the Secretariat responded that
the consultant who was examining staffing levels in the WTO was continuing with his assignment and
the results of his study would be made known to the Committee.  This point was also in relation to the
intervention in the last meeting of the Committee when the Delegations of the Netherlands and the
United Kingdom presented a non-paper with regard to the capacity of the Organization in relation to
its workload
9. In reply to query the Secretariat informed the Members that the recent seminar of Non-
Governmental Organizations (NGOs) and the possible establishment of an Advisory Council wouldbe funded out of extra-budgetary funds as no provision had been foreseen for such activities in 2001.
Incorporation of such activities into regular budget would be subject to discussions by the Committee.
Further, the Secretariat clarified that the Direct or-General’s Budgetary and Financial Report for 2000
and the report from the External Auditor formed one document, which would be distributed upon
receipt of the signed version of the External Audi tor’s report, which would be well before the next
meeting.  The Secretariat indicated that, in the past , either part or all of the overall surplus had been
used to finance the Appellate Body Operating Fund.
                                                     
1 Information with regard to temporary assistance would also be provided.WT/BFA/54
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10. The Committee noted that the item would be discussed formally at the next meeting.
III. WTO PERFORMANCE AGAINST BUDGET AS AT 30 JUNE 2001
11. A member of the Secretariat introduced the document CRP(01)10 and indicated that the 2001
expenditure of the WTO was projected at approxim ately 99.10 per cent of the budget while that of the
Appellate Body was 87.42 per cent.  The over-expenditures for the WTO were mainly (i) postal
charges, which was due to the increased costs of mailing, (ii) permanent equipment, which was due to
the purchase of equipment and (iii) temporary assistance.  The increase in costs of purchase of
equipment was compensated by the reduction in costs in leasing contracts for other equipment.  The
over-expenditure in the staff overhead costs for the Appellate Body was due to the fact that, (i) in the
previous years, certain expenditures were charged as WTO expenditures and (ii) there was an
unforeseen need to issue advertisements for the post of Director of the Appellate Body.  One Memberof the Committee suggested that consideration could be given to utilizing savings foreseen under
Trade Policy Training Courses in order to increase the number of participants.
12. The Secretariat informed the Committee that the backlog in translation would probably be
cleared by the end of the summer.
13. The Committee took note of the WTO Performa nce Against Budget as at 30 June 2001.
IV. ASSESSMENT OF ADDITIONAL CONTRI BUTION TO THE 2001 BUDGET AND
ADVANCE TO THE WORKING CAPITAL FUND:  ACCESSIONS OF THE REPUBLIC OF
LITHUANIA AND THE REPUBLIC OF MOLDOVA TO THE WTO
14. Consequent to the accession to the WTO of the Republic of Lithuania on 31 May 2001
(document WT/BFA/W/61), the Committee recommends to the General Council that a pro rata
contribution to the 2001 budget amounting to CHF 67,790 be assessed on this Government.
This assessment, calculated as from 31 May 2001, is based on an annual contribution of
0.087 per cent, taking into account the internat ional trade figures (imports plus exports in
goods, services and intellectual property rights) of Lithuania for the years 1996-1998.
Furthermore, on the basis of the level of the Working Capital Fund of CHF 8,106,085 the
Committee recommends to the General Council to assess an amount of CHF 40,530 on the
Government of Lithuania as an advance to the Fund.
15. Consequent to the accession to the WTO of the Republic of Moldova on 26 July 2001
(document WT/BFA/W/62), the Committee recommends to the General Council that a pro rata
contribution to the 2001 budget amounting to CHF 10,355 be assessed on this Government.
This assessment, calculated as from 26 July 2001, is based on an annual contribution of
0.018 per cent, taking into account the internat ional trade figures (imports plus exports in
goods, services and intellectual property rights) of Moldova for the years 1996-1998.
Furthermore, on the basis of the level of the Working Capital Fund of CHF 8,106,085 the
Committee recommends to the General Council to assess an amount of CHF 40,530 on the
Government of Moldova as an advance to the Fund.   .
V. OTHER BUSINESS
THE WTO BUILDING FACILITIES
16. The Secretariat recalled the facilities put at the disposal of the WTO by the Swiss Authorities
further to the signature of the Headquarters Agreement and its annex on infrastructure: (i) the “CentreWilliam Rappard” (CWR), (ii) an annex (some 45 working places) located on Avenue Blanc, and (iii)
a parking lot (some 400 places) located on the Chemin des Mines.WT/BFA/54
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17. In this context, is should be recalled that:  (i) the CWR was a gift from the Swiss authorities to
the WTO, (ii) the Avenue Blanc annex is put at the disposal (no rental cost) of the Organization in
lieu of the South Wing basement of the CWR which is still occupied by the “Institut Universitaire de
Hautes Etudes Internationales”, and (iii) the Chemin des Mines parking is an interim solution pending
the construction of an underground car park.
18. Considering the development of both the WTO and the Appellate Body Secretariats and the
fact that the working conditions in the Avenue Blanc annex are unsatisfactory (noise, etc), the Canton
of Geneva has found another building situated on rue Rothschild.  This annex will replace, under the
same conditions (no rental cost for the WTO), that of avenue Blanc as from November 2001.   This
new annex will contain some 90 to 100 working places and should solve the accommodation problem
for some time.
19. In the future, with a view to avoid the multiplication of annexes which is costly, it would be
appropriate to get in addition to the CWR a single second building which should be in its vicinity.
The only location available which meets this requirement is on the Avenue de France.  The Swiss
authorities envisaged the construction of a building which in all, or in part, would be put at the
disposal of the WTO according to the stipulation outlined in the Headquarters Agreement.  Such a
project would take some 5 to 7 years to be implemented.
TRUST FUND TO FACILITATE THE PARTICIPATION OF LDCs IN DOHA
20. The Secretariat recalled the Trust Fund created at approximately CHF 700,000, at the last
meeting, to facilitate the participation of the LDCs in Doha.  As of to-date, Norway pledged a
contribution of CHF 100,000.  The Secretariat urged the Members to indicate their contributions as
soon as possible so that proper arrangement could be made in time.
21. The Committee took note of the remarks from the Secretariat and the Chairman indicated that
he would draw the attention of the Members to th is effect at the forthcoming General Council on
18 July 2001.
WORKING GROUP ON THE SECLECTION OF THE EXTERNAL AUDITOR
22. The Chairman informed the Committee that the Working Group on the selection of External
Auditors was established under the chairmanship of Ambassador, Dr. Magdi Farahat from Egypt.  The
first meeting of the Working Group took place on 9 July 2001 and a second meeting was foreseen for
23 July 2001.
PARKING AT THE WTO
23. The Chairman raised a point regarding the pa rking situation in the WTO car parks.  The
Secretariat responded that it was aware of the fact that the number of places was very limited whenseveral meetings were taking place in the Centre William Rappard.  He indicated that the matter was
being kept under constant review in order to mini mize to the extent possible any inconveniences
caused.
POINTS FOR DECISION: Paragraphs 14 and 15
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