WORLD TRADE
ORGANIZATIONWT/BFA/W/106
18 September 2003
(03-5003)
Committee on Budget, Finance and Administration
APPELLATE BODY OPERATING FUND
1. It will be recalled that the Director-General proposed in his budget estimates for 2003 that an
amount of CHF 1.7 million be included to repl enish the Appellate Body Operating Fund (ABOF)
in 2003.  In the ensuing discussions on the budget proposals, this amount was deleted.  The report ofthe Committee (WT/BFA/63, footnote 4) indicates that “The needs of the Appellate Body Operating
Fund in 2003 would be monitored on a regular basis and, if needed, alternative sources of funding
would be investigated.”
2. As can be seen from the attached table, as ide from the initial financing of the ABOF,
replenishments have come exclusively from the Surplus Account.  When the proposed replenishmentof CHF 1.7 million for 2003 was deleted from the budget that was recommended to the General
Council, the status of the 2002 Surplus Account wa s not yet known, but an eventual surplus was not
excluded at that time.  The final accounts for 2002 did not, however, result in an overall surplus.
3. The level of resources required for the ABOF depends on a variable level of activity in the
Appellate Body, which is in the nature of the Dispute Settlement Process.  For the years 1997 to 2002,annual expenditure has varied from a low of CHF 1.1 million to a high of CHF 2.0 million, with an
average of CHF 1.6 million.
4. The Committee on Budget, Finance and Administration was informed in March 2003
(document WT/BFA/W/92, footnote 1) that the balance of the ABOF at that time would be
insufficient to finance the activities until the end of 2003.  If 2003 expenditure remains at the average
of past years, the overall deficit in the ABOF at the end of 2003 can be estimated at some
CHF 1.2 million.
5. In order to address this situation, it is suggested that expenditure levels of the ABOF be kept
under review.  At the appropriate time, toward the end of the year, the Committee may wish to
consider one of the following options:
(a) Should the budgetary situation so permit, the deficit could be covered by an extra-
ordinary expenditure under the 2003 regular budget; or
(b) WTO Financial Regulation 29(b) could be invoked, authorizing the Director-General
to make an advance from the Working Capital Fund.  In accordance with Financial
Regulation 30, “Sums advanced under Regulation 29(b) shall be reimbursed to the
Working Capital Fund by including an appropriate credit in the budget for the next
earliest possible financial period.”WT/BFA/W/106
Page 2ANNEX 1
STATEMENT OF ABOF AS AT 31 AUGUST 2003
APPELLATE BODY OPERATING FUND
1997 CHF 1998 CHF
Opening Funds12,500,000 Opening Balance 2,930,487
Expenditure (1,102,769) Expenditure (1,730,338)
Accrued interest 33,256 Accrued interest 28,581
Replenishment21,500,000 Replenishment _______-
Balance 31 Dec. 97 2,930,487 Balance 31 Dec. 98 1,228,730
1999 CHF 2000 CHF
Opening Balance 1,228,730 Opening Balance 1,874,662
Expenditure (1,561,052) Expenditure (1,643,618)
Accrued interest 6,940 Accrued interest 28,038
Replenishment32,200,044 Replenishment31,627,110
Balance 31 Dec. 99 1,874,662 Balance 31 Dec. 00 1,886,192
2001 CHF 2002  CHF
Opening Balance 1,886,192 Opening Balance 1,711,018
Expenditure (2,007,102) Expenditure (1,268,973)
Accrued interest 31,928 Accrued interest 34,760
Replenishment51,800,000 Replenishment ________-
Balance on 31 Dec.01 1,711,018 Balance on 31 Dec.02  476,805
2003 CHF
Opening Balance 476,8051 Funded as extra-ordinary expenditure under 1996 budget
Expenditure (741,514)2 Transfer from 1996 Surplus
Accrued interest          -3 Transfer from 1998 Surplus
Replenishment _______-4 Transfer from 1999 Surplus
Balance on 31 March 03 (264,709)5 Transfer from 2000 Surplus
 WT/BFA/W/106
Page 3Expenditure CHF
 1997 1998 1999 2000 2001 2002 2003
        
Interpreters 18,545 9,966 2,389 20,494 7,995 52,480 0
Transcribers 56,402 185,504 93,373 48,333 64,457 24,974 62,070
Temporary Assistance 44,365 140,173 83,006 125,983 142,960 149,445 126,211
Members' Travel and Per Diem 404,457 614,327 528,988 682,104 804,205 491,258 373,029
Members' Fees* 579,000 763,200 844,200 748,800 963,600 539,400 174,600
Reports/Miscellaneous  7,322  8,669 16,342 259 0
Postage 9,846 9,096 9,235 7,543 11,157 5,604
 1,102,769 1,730,338 1,561,052 1,643,618 2,007,102 1,268,973 741,514
Days worked by Members 1,249 1,162 1,229 1248 1,617 884 291
* Members' Fees 2003 include expenditure to 30 June 2003; days worked by Members in 2003 are up to this date as well.
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