./.WORLD TRADE
ORGANIZATIONWT/BFA/55
10 October 2001
(01-4937)
ANNUAL REPORT (2001) 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 the WTO, adopted by the General Counc il on 15 November 1995 (WT/GC/M/8, item 11), a
report on the activities of the WTO Committee on Budget, Finance and Ad ministration in 2001 is
hereby submitted.
2. It will be recalled that the Committee met on a number of occasions 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 contri butions including the implementation of the related schemes and
measures pertaining to receipt of  contributions.  It undertook a preliminary examination of: (i) the
Director-General’s Budg etary and Financial Report for 2000 and Report of the External Auditors
Thereon; (ii) the Divisional Reporting on Objectives and Expenditures for 2000; (iii) the Report on
Extra-Budgetary Funds for 2000.  The Committee will c ontinue its examination of these three reports
and examine the Director-General's budget propos als for 2002 during the last quarter of 2001.  In
addition, 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 progress reports on the WTOPension Plan.
II. MAJOR AREAS OF ACTIVITIES
A. 
PERFORMANCE AWARD PROGRAMME
4. It is recalled that although Staff Regulation 6.5 directed the WTO to introduce the performance
award programme, the actual introduction of the programme required amendment of the staff rules
which referred to the system of periodic salary in crements or the “step system” (Rules 106.3).  Staff
Regulation 13.2 called for the General Council’s appr oval of amendments to staff rules “carrying
financial implications or creating new rights for staff members”.  The Committee examined the issue in
the course of 2000 and made a recommendation to  the General Council in January 2001 (document
WT/BFA/52 paragraph 7).  The General Council accep ted the recommendation at its meeting of 8 and
9 February 2001 (WT/GC/M/63).
                                                     
1Reports: WT/BFA/52 covering the meeting of 26 Ja nuary 2001; WT/BFA/53 covering the meeting of
14 May 2001, and WT/BFA/54 covering the meeting of 16 July 2001.WT/BFA/55
Page 2
B. SELECTION OF EXTERNAL AUDITORS
5. In 2000, the mandate of the Netherlands Court of Audit as the WTO External Auditor was
extended for a period of 2 years, for the audit of the 2000 and 2001 accounts (WT/BFA/47 and
WT/GC/M/57).  A call for tenders for the appoint ment of external auditor was sent out in
February 2001.  A Working Group within the framework of the Committee was established to studythe offers and to formulate a recommendation on the selection of the External Auditor to the
Committee.  The Working Group will bring the results of its deliberations to the Committee at a
forthcoming meeting.
C. 
CONTRIBUTION FROM NON -GOVERNMENTAL DONORS
6. It is recalled that, upon the recommendation of the Committee, the General Council adopted on
15 December 2000 guidelines governing the process of  acceptance of voluntary contributions, gifts or
donations from non-Governmental donors (document WT/L /386).  In compliance with these guidelines,
the Committee examined a proposed donation from a foundation, and decided that  the Director-General
could accept it (document WT/BFA/53, paragraph 13).
D. OTHER ITEMS
7. The Committee also discussed and/or was informed about the following points in the various
meetings: (i) preliminary budget outline of the International Trade Centre UNCTAD/WTO for 2002,
(ii) trust fund to facilitate the participation of Least Developed Countries at Doha, and (iii) WTO
building facilities.
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