RESTRICTED  
  
WT/BFA/W/508  
 
21 February 2020  
(20-1369) Page: 1/24 
Committee on Budget, Finance and Administration    
 
 
- 1 - 
 
STATUS OF THE IMPLEMENTATION OF EX TERNAL AUDIT RECOMME NDATIONS  
1  BACKGROUND  
1.1.  This document presents the status update concerning the findings of External Auditors and the 
recommendations implemented by the Secretariat since the last update to the CBFA  in October 2019.  
1.2.  This report is based on  the financial and performance audit whic h was conducted from  1 April 
to 10 May 2019  and on the ad interim audit conducted from 3 February to 7 February 2020.  
1.3.  Following each audit session, the External Auditors reviewed the previously issued 
recommendations and updated their status according to t he following categories:  
a. Closed/ to be closed : recommendation was implemented by the Secretariat.  
b. Work-in-Progress ( WIP)/On-going: recommendation is accepted and under 
implementation by the Secretariat.  
c. Open: recommendation is newly assigned or still  under review/assessment  and to be 
addressed  by the Secretariat.  
1.4.  This document presents  a recap of status of implementation of the external  audit 
recommendations  (Annex 1) and a list of the pending or open recommendations (A nnex 2), for 
information to the CBFA.  
2  RECOMMENDATIONS SUMMA RY  
2.1.  The External Auditors, represented by the Supreme Audit Institution of Germany, began their 
activities in 2015 and have issued , since then , a total of 75 recommendations . 55 recommendations 
were included  in the past updates of the s tatus of implementation and 20 additional 
recommendation s were issued in the audit report  issued in June 2019 . 
2.2.  Based on the supporting information provided to the External Auditors , by the  Secretariat , 
52 out of 55 past recommendations  have been suc cessfully closed . Only 3 are still pending, 
specifically :  
• 14 out of the 14 recommendations  (100% ) related to the External Audit Report issued in 
June 2015 have been closed ;  
• 16 out of the 17 recommendations (94%) related to the External Audi t Report issued in 
June 2016 have been implemented. The remaining recommendation  is still in progress and is 
closely followed by the Office of Internal Oversight , which  conducted an ad hoc audit in 2017 on 
Home Leave matters . 
• 13 out of the 13 recommendations (100% ) related to the External Audit Report issued in 
June 2017 have been closed .  
• 9 out of 11 recommendations ( 82%) related to External Audit Report issued in June 2018 have 
been closed or are to be closed . 
 WT/BFA/W/ 508 
 
- 2 - 
 
  2.3.  The External Audit Report presented to the CBFA in June 201 9 included 20 new 
recommendations , of which 6 were related to financial matte rs and 14 to performance matters  
(related to  Human Resources ).  
2.4.  Among the recommendation s issued in June 2019 , the Secretariat implemented 
6 recomm endations (30%). The Secretariat is working on the remaining recommendations from the 
financial and performance audit .  
2.5.  The Secretariat will be subject to a full audit in the month of  April 2020 , both at financial and 
performance level , where t he status of the pending past recommendations will be evaluated,  and 
new recommendations will be issued.  
_______________  
  
  WT/BFA/W/ 508 
 
- 3 - ANNEX 1: STATUS OF AUDIT RECOMMENDATIONS AS OF FEBRUARY 2020 
STATUS OF PAST AUDIT RECOMMENDATIONS AS OF FEBRUARY 2020 
Audit Activity  Report 
Year Total Number of 
Recommendations  Implementation status  
Accepted  Closed1 WIP2 Open3 
Financial Audit of year end closed as of 31.12.2014  2015 7 7 7 0 0 
Performance audit on IT & Procurement  2015 7 7 7 0 0 
Financial Audit of year end closed as of 31.12.2015  2016 4 4 4 0 0 
Performance audit on Facility Management, Security and Strategic Review 
Implementation  2016 13 13 12 1 0 
Financial Audit of year end closed as of 31.12.2016  2017 5 5 5 0 0 
Performance audit on Confidentiality and Ministerial Conference  2017 8 8 8 0 0 
Financial Audit of year end closed as of 31.12.2017  2018 2 2 2 0 0 
Performance audit on Travel and Consulting Services  2018 9 9 7 2 0 
Totals 2017 and prior years    55 55 52 3 
0 
95%  5% 
Financial Audit of year end closed as of 31.12.2018  2019 6 6 5 1 0 
Performance audit on Human Resources  2019 14 14 1 13 0 
Grand Total    75 75 58 17 
0 
77% 22% 
 
  
 
1 Closed/To be closed: recommendation was implemented by the Secretariat.  
2 WIP/Ongoing: recommendation is accepted and under implementation by the Secretariat.  
3 Open: recommendation is newly assigned or still under review/assessment and to be addressed by  the Secretariat.   
  WT/BFA/W/ 508 
 
- 4 - ANNEX 2: NEWLY ISSUE D, ONGOING  AND TO BE CLOSED  AUDIT RECOMMENDATION S (FEBRUARY 2020) 
No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
19 Home leave  3.3.1 / 2015  Regarding the finding (see para 25) in our sample 
check we additionally looked into the approved home 
leave (HL) in 2014 and 2015 with a total amount of 
CHF 2,873,352  and related procedures. In this 
context we filtered the HL of beneficiary staff from 
selected countries all over the world. The analysis of 
the lump sums showed a wide variation of home leave 
amounts paid even for the same country or town.  
I recommend reviewing the rules for home leave. A 
benchmark with other international organizations 
could be helpful.  February 2019 
Status updated included in 
the OIO report  
October 2019  
A revised text of the home 
leave policy has been 
elaborated by HR and 
received input from the 
AGSD/Travel for its 
feasibility. The document is 
being finalized.  
February 2020  
Same as above  Ongoing  High 
45 Action plan for 
growing 
outstanding 
contributions.  3.2 / 2017  
3.2 / 2018 
 
 
 
 Outstanding contributions totaled 2017: 
CHF 33.8 million, 2018: CHF 25.7 million. Although 
the sum of outstanding contributions temporary 
decreased, there are effectively more Members and 
Observers with significant outstanding contributions 
than in 2017.      
I recommend in 2018 preparing an action plan for 
running the WTO with growing outstanding 
contributions.    February 2019  
The CBFA h as approved the 
transfer of the accumulated 
budget surplus of 52 MCHF 
to the Working Capital 
Fund. This is considered a 
sufficient mitigating 
measure against the risk 
highlighted by the Auditor's 
report.  To be 
closed4 
 High 
 
4 Recommendation has been implemented after the last ad interim audit; status has therefore changed in "to be closed" as the au ditors shall confirm the closure 
in the next ad Spring Audit 2020.   
  WT/BFA/W/ 508 
 
- 5 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
I maintain the recommendation of preparing an action 
plan for running the WTO with growing outstanding 
contributions.   October 2019  
The Secretariat has 
approved an additio nal 
transfer of the budget 
result of 2018 to the 
Working Capital Fund as a 
mitigating measure against 
such type of risks.  
February 2020  
The Secretariat has booked 
and transferred  the 
additional surplus for 2018 
to the Working Capital 
Fund. This is considered a 
sufficient mitigating 
measure for the audit 
recommendation  
48 Insurance 
policy (HR)  3.3.1 / 2017  I suggest that WTO review whether it is economically 
advantageous to take out an insurance policy that 
covers the complete risk of invalidity instead of minor 
one-time lump sum payments only.  February 2019  
The Secretariat agrees with 
the observation and will 
investigate the feasibility of 
this suggestion relative to 
other options . 
 To be 
closed5 Medium  
 
5 Recommendation has been implemented after the last ad interim audit; status has therefore changed in "to be closed" as the auditors shall confirm the closure 
in the next ad Spring Audit 2020.   
  WT/BFA/W/ 508 
 
- 6 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
October 2019  
The Secretariat is still 
looking into this.  
February 2020  
An assessment was done,  
and the conclusion was that 
an insurance policy would 
not provide much 
advantage . 
Recommendation can be 
closed  
49 Delegation of 
authority  4.1 / 2017  I recommend updating regularly the document "WTO 
Delegation of Authority". It should be noted that there 
is a delegation of authority to the Director of the 
AGSD for the adoption of the travel policy.  February 2019  
A new SOAM (Staff on  line 
manual) is currently 
available on the intranet. 
The Documents in the 
Manual are centrally 
managed by HR and the 
status of each published 
WTO document (i.e. in 
force, archived etc.) is 
clearly indicated.  
The New Travel policy is 
still under review by the 
Secretariat.  To be 
closed6 Low 
 
6 Recommendation has been implemented in the fall 2019; status is therefore "to be closed" as the auditors  shall confirm the closure in the next Spring Audit.   
  WT/BFA/W/ 508 
 
- 7 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
October 2019  
The new Travel policy has 
been finalized, the 
recommendation can be 
closed . 
51 Expanding 
application 
MobileXpense  4.1 / 2017  If the introductory phase has been successfully 
completed, I recommend that the WTO check 
expanding the application of MobileXpense to other 
categories of travelers.  February 2019  
End of project report for 
phase 1 of Mobil e-expense 
has been submitted to the 
Project Board.  A prototype 
to extend the solution to 
non-WTO travel was 
delivered and the WTO is 
working on the amendment 
of the initial contract with 
Mobile-expense.  A project 
plan for phase 2 is under 
finalization with the 
objective of implementing 
Mobile-expense for non -
WTO staff at the end of 
2019.  
October 2019  
Development of Mobil e-
expenses phase two is in 
progress . 
 Ongoin g Medium   
  WT/BFA/W/ 508 
 
- 8 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
February 2020  
Development is proceeding 
according to the foreseen 
path. By the end of 2020 
phase two shall be 
completed.  
52 Calculating 
advances  4.1 / 2017  MobileXpense often exceeded the reimbursable travel 
expenses. The travel service team then informed the 
employee in each individual case to process the 
repayment of the overpayment. This created 
additional work that can be avoided by complying with 
the travel policy.  
I recom mend calculating advances in line with 
regulations.  February 2019  
Change to adjust the 
calculation of the DSA 
advance in Mobile -expense 
in course of development.  
Implementation to follow as 
soon as the development 
will be operational.  Revised 
Travel Policy still with the 
JAC for consideration.  
October 2019  
Travel policy has been 
finalized and the advance 
has been regulated 
automatically in mobile 
expense. Recommendation 
can be closed . To be 
closed7 Medium  
 
7 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the c losure in the next Spring audit.   
  WT/BFA/W/ 508 
 
- 9 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
53 Application for 
authorization  4.1 / 2017  Applications  for authorization shall be submitted at 
least 10 working days before the start of official 
travel.  
I recommend that travelers be requested to make 
travel claims as early as possible; if submitted shortly 
before the start, this should be justified accordingly in 
the travel request.  February 2019  
 
In March 2019, AGSD will 
send notifications to all 
Admin Assistants in charge 
of travel claims to inform 
about the end of Phase 1 of 
Mobile expense and about 
the new features of the 
system (i.e. automatic 
closure of open reports 
after 30 days). In that 
communication the 
importance of the minimum 
10 days for travel 
authorization will be 
highlighted too.  
 
October 2019  
 
This has been 
implemented. The 
recommendation can no w 
be closed . 
 To be 
closed8 Low 
54 Open travel 
expense 
reports  4.1 / 2017  Travel expense reports in MobileXpense are 
considered "open".  June 2018  
The Secretariat agrees on 
the observation and will To be 
closed9 Low 
 
8 Recommendation has been implemented afte r the last spring audit; status is "to be closed" as the auditors shall confirm the closure in the next Spring audit.  
9 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the c losure in t he next Spring audit.   
  WT/BFA/W/ 508 
 
- 10 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
I recommend making a settlement as soon as 
possible, which means when cases are technically 
completed.  implement it by the second 
quarter of 2019.  
February 2019  
Automatic settlement of 
open expense reports is 
now ready for 
implementation. In March 
2019 a communication will 
be sent to relevant 
stakeholder to  announce 
the beginning of this 
process as of 1st April 
2019. The recommendation 
has can be closed . 
55 Recruitment 
process for 
consultants 
(HR) 4.2 / 2017  There are two different processes in the two 
responsible divisions for consultants.  
I recommend standardizing recruitment processes for 
individual consultants according to the Procurement 
Guidelines.  June 2019  
HR has drafted a new 
guideline on individual 
consultants and AGSD has 
provided feedback to be 
incorporated in the fin alized 
document.  
October 2019  
The drafted new guideline 
is still under review . 
February 2020  
Same as above  Ongoing  High  
  WT/BFA/W/ 508 
 
- 11 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
56 Cash and cash 
equivalents  3.3.1 / 2018  I recommend that WTO adjust the existing unique 
signatories by the DG to joint signatures 2 by 2 
authorizations for all WTO bank accounts as soon as 
possible.  June 2019  
The Secretariat accepts the 
recommendation and will 
implement it as soon as 
possible . 
October 2019  
Form to update the bank 
signature prepared and to 
be sent to the DG  office . 
February 2020  
Same as above  Ongoing  Low 
57 Accruals and 
provisions  3.3.1 / 2018  The position Accruals  CHF 10.4 million (2017: CHF 6.6 
million) contains not only accruals but also provisions. 
Due to IPSAS 1.88, provisions are to be presented 
separately.  
I recommend that WTO should present accruals and 
provisions separately in its financial statements.  June 2019  
The Secretariat accepts the 
recommendation and will 
implement it in the 2019 
Financial Performance 
Report.  
October 2019  
The Secretariat will 
implement the 
recommendation in the 
2019 Financial Performance 
Report . To be 
closed10 Medium  
 
10 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the c losure in the next Spring audit.   
  WT/BFA/W/ 508 
 
- 12 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
February 2020  
Recommendation 
implemen ted in closure 
2019.  
58 Accruals and 
provisions  3.3.1 / 2018  I recommend that WTO should explain the positions 
accruals and provisions by separate notes in the 
financial statements. In these notes WTO should 
explain the relevant facts and the applicable 
calculation methods.  June 2019  
The Secretariat accepts the 
recommendation and will 
implement it in the 2019 
Financial Performance 
Report.  
October 2019  
The Secretariat will 
implement the 
recommendation in the 
2019 Financial Performance 
Report . 
February 2020  
Recommendation 
implemented in closure 
2019.  To be 
closed11 Medium  
59  Accruals and 
provisions  3.3.1 / 2018  As I already recommended in 2017 (no. 46), WTO 
should review its calculation regarding to actual long 
term (legal) obligations. For the new calculation WTO 
should consider the average Swiss (remaining) life The Secretariat does not 
accept this 
recommendation due to the 
fact that these provisions To be 
closed12 Medium  
 
11 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the closure in the next Spring audit.  
12 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the c losure in the next Spring audit.   
  WT/BFA/W/ 508 
 
- 13 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
expectancy, the monthly amount as well as payment s 
and claims from the WTO Pension Plan (retirement, 
early retirement, and disability benefits), payments 
from third parties and the applicable discounting for 
long term liabilities.   
I recommend that WTO should review its calculation 
regarding to actual l ong term (legal) obligations.  were introduced  in order to 
implement a previous 
recommendation by the 
External Auditor - audit 
recommendation 33 
"provision for invali dity 
case" which has been 
closed (Audit report 2016, 
paragraph 3.1.1.).  
60 Accruals and 
provisions  3.3.1 / 2018  WTO should revise its potential risks related to 
disability cases in order to implement possible and 
effective mitigation measures to minimize such risks.  
I recommend that WTO should revise its potential 
risks related to disability cases in order to implement 
possible and effective mitigation measures to 
minimize such risks.  June 2019  
The secretariat will revise 
its risk register to take 
account of this 
recommendation.  
October 2019  
The updated risk register 
will include the item 
indicated in the 
recommendation . This will 
be done by March 2020 . 
February 2020  
Same as above  Ongoing  Medium  
61 Short -term 
employee 
benefits  3.3.1 / 2018  The position provision for bonus contains the accrual 
for the bonus 2018: CHF 480,000 as well as a 
remaining amount of CHF 359,100 non-paid bonuses 
of prior years. WTO still recognized the remaining non June 2019  
The Secretariat accepts the 
recommenda tion and will To be 
closed13 High 
 
13 Recommen dation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the closure i n the next Spring audit.   
  WT/BFA/W/ 508 
 
- 14 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
paid bonuses incorrectly as short -term employee 
benef its. 
I recommend that WTO review the current purpose of 
the non - paid bonuses. WTO should recognize this 
amount as miscellaneous income in 2019 so far as 
entitlements could not be directly claimed by staff.  implement it in the 2019 
Financial Performance 
Report.  
October 2019  
The Secretariat will 
implement the 
recommendation in the 
2019 Financial Performance 
Report . 
February 2020  
Recommendation 
implemented  
62 Process 
description 
(HR) 4.1 / 2018  The absence of process description may lead to a 
conflict of interest as well as limited transparency. 
This might cause unclear tasks and responsibilities. 
Furthermore, this always entails the risk of inefficient 
and ineffective  processes as well as poor workflows. 
Additionally, in parts of the processes I detected 
interface problems, duplication of efforts, and 
redundant workflows. I appreciate that WTO already 
has carried out a significant work in terms of process 
mapping and t he development of Standard Operating 
Procedures as well as progress to avoid conflict of 
interest. However, the final adjustments and 
decisions are still pending.  
I recommend that WTO finalize the process 
description soon to ensure a smooth workflow with a  
transparent and clear allocation of tasks and June 2019  
 
Gaps were identified by a 
management consultancy 
firm in early 2018. To 
address these, the 
Secretariat initiated a 
project to put a robust 
Human Resources 
Information System (HRIS) 
in place. Significant work 
was done, in collaboration 
with an external cons ultant, 
to map out current 
processes. In addition, 
there are "as -is" process 
workbooks for all HR Ongoing  High  
  WT/BFA/W/ 508 
 
- 15 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
responsibilities. Therefore, the Human Resources 
Division should immediately define and harmonize the 
ownership of the processes and clarify the roles and 
responsibilities. On that basis, the Human Resources 
Division should coordinate the finalized process 
description internally with all process participants. 
The consensual version of process descriptions should 
then be authorized accordingly.  processes indicating the 
tasks/steps, responsibilities 
and interactions required. 
Furthermore, the gaps 
identified by external 
consultant resulted in 
recommen dations to 
develop Standard 
Operating Procedures. This 
is in progress. The project 
is estimated to conclude in 
2020.  
 
October 2019  
 
HRD has started developing 
Standard Operation 
Procedures, several have 
already been finalized, and 
the project should conclu de 
in 2020.  
 
February 2020  
 
Same as above  
 
63 Personnel files  4.1 / 2018  I recommend that WTO should implement clear 
instructions for the documentation of all staff related 
matters. These instructions should be govern what 
kind of essential information shall be documented and 
in which form.  June 2019  
 
Agreed. The WTO 
Secretari at will finalize the 
necessary documentation 
by 2020 as this is a Ongoing  High  
  WT/BFA/W/ 508 
 
- 16 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
component of the HRIS 
project.  
 
October 2019  
 
The WTO Secretariat will 
finalize the necessary 
documentation by 2020 as 
this is a component of the 
HRIS project.  
 
February 2020  
 
Same as above  
 
64 Personnel files  4.1 / 2018  I recommend that WTO should prescribe a uniform 
and appropriate structure of the personnel files, paper 
and electronic files, as well as limited access rights.  
 June 2019  
 
Agreed. The WTO 
Secretariat will develop 
clear guidelines related to 
the documents that ought 
to be contained in the 
personnel files of staff 
members. This will also 
cover the assurance that 
the documents are 
maintained in the same 
format.  
 
October 2019  
HRD has started to develop 
clear guidelines so this Ongoing  High  
  WT/BFA/W/ 508 
 
- 17 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
recommendation is still in 
progress  
February 2020  
 
Same as above  
65 Heterogenic 
(IT-) 
infrastructure 
– payroll 
process  4.1 / 2018  The use of a heterogenic, fragmented and non -
interconnected landscape is neither effective nor 
efficient. Negative effects of a heterogenic system 
landscape may be error susceptibility, interface 
losses, redundant data, low data reliability and data 
incons istencies. Furthermore, media interruptions 
may lead to a lack of internal control within the 
Human Resources Division.  
I recommend that WTO finalize the HR -process 
description to identify future required functions (first 
step). The essential goal should be to consolidate the 
current heterogenic landscape of systems and 
applications in a timely manner.  June 2019  
What is covered in this 
recommendation is already 
part of the scope of the 
HRIS project.  
October 2019  
Still in progress as part of 
the HRIS proje ct 
February 2020  
 
Same as above  Ongoing  High 
66 Heterogenic 
(IT-) 
infrastructure 
– payroll 
process  4.1 / 2018  Only an optimized and efficient (IT) -infrastructure 
that contains all data and processes enables HRD to 
an effective and efficient task fulfillment. In my 
opinion a future -proof HRMS system should basically 
contain all HR functions, including benefits 
administration, payroll, recruiting and training, as 
well as performance analysis and review.  
I recommend that WTO develop a performance 
description to ensure that the procurement process 
will be based on requirements defined for an effective 
HRMS (second ste p). June 2019  
What is covered in this 
recommendation is already 
part of the scope of the 
HRIS project.  
October 2019  
Still in progress as part of 
the HRIS projec t. 
 Ongoing  High  
  WT/BFA/W/ 508 
 
- 18 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
 February 2020  
 
Same as above  
67 Salary scale  4.1 / 2018  The Human Resources Division used five different 
salary scales. The salary scale used for each staff 
member depends on the date of recruitment (vacancy 
note) or on the date the staff member started its first 
fixed-term contract. In 2019 WTO could already 
reduce one of the scales.  
I recommend that WTO reduce the different salary 
scales as soon as possible to one uniform scale. In 
this context, WTO should use all options to adapt the 
salaries. The applicable salary scale for new 
recruitments should be fixed to ensure better 
comparability and maximum transparency.   June 2019  
Agreed. Implementation 
will be gradual, over the 
years.  
October 2019  
The same as above.  
February 2020  
 
Same as above  
  Ongoing  Medium  
68 Performance 
evaluation, 
bonus and 
promotion  4.1 / 2018  The current performance evaluation system may not 
be an effective tool for performance -related payments 
and human resources development. As long as WTO 
not implements valid and measurable indicators 
according to the agreed objectives, it will be really 
difficult for an objective target achievement 
evaluation and control.  
I recommend that WTO should revise the 
performance evaluation system. This should include 
the implementation of valid and measurable 
indicators to enable an objective target achievement 
evaluation in line with the objectives agreed.  June 2019  
The performance 
evaluation system has been 
reviewed and the relevant 
documentation is being 
assessed by the Joint 
Advisory Committee.  
October 2019  
The reviewed performance 
policy  was issued to all staff 
on 4 October 2019 . To be 
closed14 High 
 
14 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditor s shall confirm the closure in the next Spring Audit.   
  WT/BFA/W/ 508 
 
- 19 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
February 2020  
 
Same as above  
69 Secondary 
dependency 
allowance  4.1 / 2018  The maximum amount that can be applied is CHF 
2,712 per year (staff rules, Annex 2 c.). In 2018 WTO 
paid in total CHF 137,749 for the secondary 
dependent's allowance. WTO did not implement a 
differentiation regarding the applicable salary of its 
staff to consider financial needs or the economic 
status nor the general social situation of the 
applicable dependent's in t heir home country. It 
seems appropriate to reduce the secondary 
dependency allowance to a limited number of cases 
(lower grades) or to abolish this regulation.  
I recommend that WTO review and adjust the rules 
for the secondary dependency allowance. In this  
context, WTO should consider granting secondary 
dependent’s allowance to a limited number of staff 
only, taking into account the economic status of the 
staff member as well as the social situation of the final 
beneficiaries. WTO also might be considering 
abolishing this regulation.  June 2019  
The dependency allowance 
is detailed in the staff 
regulations and staff rules 
and is duly implemented 
according to them. This 
benefit exists in other 
international organizations.  
Assessing the general social 
situation s of the 
dependents' in the home 
countries of secondary 
dependents would be highly 
complicated from several 
perspectives, including the 
cost of implementation.  
Furthermore, Staff 
Members receiving any 
type of allowance are 
required to submit 
documentary e vidence 
justifying their eligibility on 
an annual basis.  
 To be 
closed15 Medium  
 
15 Recommendation has been implemented after the last spring audit; status is "to be closed" as the auditors shall confirm the c losure in the next Spring Audit.   
  WT/BFA/W/ 508 
 
- 20 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
October 2019  
Recommendation can be 
closed . 
February 2020  
 
Same as above  
 
70 Summer 
school 
internship  4.1 / 2018  WTO did not implement any regulations or guidelines 
regarding the structure or nature of the Summer 
School Programme. Besides, WTO did not require 
operational needs or individual and professional skills 
of potential applicants.  
I recommend that WTO close the current Summer 
Student Programme. If WTO develops an appropriate 
programme, this should be based on a formal 
guideline which includes formal regulations for needs, 
required skills and qualifications of applicants, 
available budget (number of internship s per year) as 
well as duties and responsibilities to implement and 
govern this programme. Furthermore, WTO should 
consider opening the programme for all potential 
applicants by means of a fair recruitment process.  June 2019  
The WTO Secretariat will 
benchm ark against other 
international organizations, 
with a view to assessing the 
recommendation in an 
objective manner.  
October 2019  
The same as above.  
February 2020  
 
Same as above   Ongoing  Low 
71 Accumulated 
annual leave  4.1 / 2018  I note that WTO has a risk of CHF 8.4 million as at 31 
December 2018, coming from accumulated annual 
leave for previous years.  This risk may affect the 
budget planning of subsequent years as well as longer 
substitution periods.  I determine that a number of 
WTO staff is not (sufficient) using their entitlements 
for recreating. As a result of this WTO may be affected 
with an increase of cases of illness and occupational June 2019  
Stringent measures have 
been already in place for 
several years. These 
include: statistics sent to 
directors, reminders to staff 
etc. Furthermore, any leave Ongoing  Medium   
  WT/BFA/W/ 508 
 
- 21 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
stress. Another effect may be that staff includes the 
payout for untaken annual leave fo r separation.  
I recommend that WTO enhance the monitoring of 
accumulated annual leave days of its staff to ensure 
that the staff uses the annual leave for recreation 
purposes and to avoid that annual leave days expire 
or that WTO has to pay out a number of  untaken 
annual leave in case of separation. In this context, 
WTO further should raise awareness among the 
supervising directors for a better management and 
control of annual leave balances.  reimbursements is limited 
to a maximum of 60 days at 
the time of separation. The 
Secretariat will continue to 
emphasize the importance 
of annual leave 
management to s taff and 
directors.  
October 2019  
The same as above.   
February 2020  
 
Same as above  
72 Accumulated 
annual leave  4.1 / 2018  According to WTO, the applicable reference period is 
from 1 May to 30 April. In fact, the 60 -day rule is not 
relevant as at 31 December and staff may accumulate 
up to 90 days as at 31 December. WTO limited leave 
reimbursements to a maximum of 60 days at th e time 
of separation.   
Eight staff members had an excessive annual leave 
balance of 69 days as at 31 December 2018 (negative 
amount).  In two out of the six cases the staff 
members are on special leave without pay. The 
negative balance of 28 respective 9. 5 days should be 
recuperated from the annual leave allocation after 
their returning in 2019.  In five cases WTO granted 
advance leave day up to 10 days for family reasons, 
health and studies as well as preparation of 
retirement. WTO could not provide us wi th written 
regulations concerning the granting of advance June 2019  
The WTO agrees to  work 
towards aligning the leave 
cycle with the calendar year 
and to assess measures of 
governing untaken leave.  
October 2019  
The same as above.  
February 2020  
 
Same as above  
 Ongoing  Medium   
  WT/BFA/W/ 508 
 
- 22 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
annual leave and refers to a “long -standing practice 
to grant up to 10 days exceptional circumstances”. In 
one case the excessed leave days (5.5 days) were 
deducted from the final payment because of  cessation 
of service.         
I recommend that WTO review the staff rules 
regarding the regulations for accumulating annual 
leave to ensure that risks in subsequent years will be 
reduced as well as to implement written regulations 
concerning the granting of advance annual leave. In 
this context WTO also should consider to align the 
applicable reference period with the calendar year. 
Furthermore, WTO should implement appropriate 
payment restrictions for untaken annual leave.     
 
73 Home leave  4.1 / 2018  In my report from 31 May 2016 I recommended WTO 
to review the rules for HL, especially the calculation 
of the lump sum (also see no.19). In addition,  I 
recommended WTO to consider the results and 
recommendations of the audit conducted by the 
Internal Audit (OIO) as well as its respective 
investigation regarding HL in 2016/2017. Even, OIO 
strongly had recommended to review und adjust the 
rules and guide lines for HL because detected systemic 
problems and vulnerability to fraud in 2017.      
I strongly recommend that WTO should review the 
rules and guidelines for HL as soon as possible. In this 
context WTO should consider the recommendations 
by OIO to brin g the new rules and regulations in line 
with other comparable regulations of International June 2019  
The Secretariat agrees and 
is in the process of 
finalizing its review of the 
new Home Leave policy.  
October 2019  
A revised text of the home 
leave policy has been 
elaborated by HR and 
received input from the 
AGSD/Travel for its 
feasibility. The document is 
being finalized.  
February 2020  ongoing  High  
  WT/BFA/W/ 508 
 
- 23 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
Organizations (Benchmark) as well as to avoid 
excessed payments and misconduct.     
Same as above  
74 Home leave  4.1 / 2018  Up to April 2019 WTO did not implement a formal 
sanction mechanism to ensure contemporary 
settlements and evidence checks.        
I recommend that WTO implement an effective 
sanction mechanism to ensure evidence and a correct 
settlement in  time. 
 June 2019  
The Secretariat agrees and 
is in the process of 
finalizing its review of the 
Home Leave policy.  
October 2019  
A revised text of the home 
leave policy has been 
elaborated by HR and 
received input from the 
AGSD/Travel for its 
feasibility. Th e document is 
being finalized.  
February 2020  
 
Same as above  
 Ongoing  High 
75 Home leave  4.1 / 2018  Due to Rule 109.3 (f) of WTO Staff Rules a staff 
member shall normally be required to spend at least 
two weeks in the country of HL. In six of the 14 
checked HL cases in our sample (43 per cent) the staff 
spent less than 10 days in the country of HL.  
I recommend that WTO should ensure that the 
entitled staff effectively spends at least two calendar 
weeks (or 10 working days) in the country of HL. This June 2019  
The Secretariat is reviewing 
the issue of the two 
calendar weeks for Home 
Leave.  
 Ongoing  High  
  WT/BFA/W/ 508 
 
- 24 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
also may be helpful to reduce the number of untaken 
annual leave within a period of two years.        October 2019  
A revised text of the home 
leave policy has been 
elaborated by HR and 
received input from the 
AGSD/Travel for its 
feasibility. The document is 
being finalized.  
February 2020  
 
Same as above  
 
 
 
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