RESTRICTED  
  
WT/BFA/W/ 535 
 
  
12 October  2020 
(20-7005) Page: 1/5 
Committee on Budget, Finance and Administration   
  
  
WTO BUDGET AND FINANCE REPORT – 3RD QUARTER 2020  
1  CONTRIBUTIONS FROM MEMBERS AND OBSERVERS  
1.1.  The receipts of contributions from Members as at the end of September  2020 is slightly higher 
than at the same time in 2019. This is mainly due to the fact that the receipt of contributions has 
accelerated compared to the first two quarters of 2020.  
Figure 1 Total Annual Receipts in MCHF as at 30 September  2020 
 
 
1.2.  At the end of September  2020, 60% of the WTO Members had no outstanding balance. With 
respect to the assessed amount of CHF 195.5  million, 80% has been received.   
1.3.  The receipts of contributions from Observers as at the end of the 3rd quarter of 20 20 amounted 
to CHF  319,586  representing 45% of the assessed amount.  The amount received during the 
comparable period in 2019 was CHF 326,069 . 
Table 1 Status of contributions as at 30 September  2020 (in CHF)  
Contributions   164 Members  25 Observers  
Total net assessment for 2020    195,500,000    711,995  
Payment received for 2020 (% of total assessment)  (80%)  157,041,946  (45%)  319,586  
Payment received for prior years    13,106,549   
177,477  
No outstanding balance (% of total)  (60%)  98 (40%)  10 
 
2  CASH SITUATION  
2.1.  In line with the receipts of contributions, th e cash situation at the end of September  2020 is 
slightly higher  than at the end of  September  2019. 
WT/BFA/W/ 535 
 
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  Figure 2 Cash Situation as at 30 September  2020 
 
 
3  MEMBERS AND OBSERVERS UNDER ADMINISTRATIVE MEASURES  
3.1.  At the end of the third quarter of 2020,  six Members were subject to  Category I (more than 
one, but less than two years outstanding) of the Administrative Measures ; three  Member s were 
subject to Category II (more than two, but less than three years outstanding) ; and eight Members 
were subject to Category  III (three  or more  years outstanding = Inactive) . No changes have 
occurred since the June report.  
Table 2 Members under Administrative Measures as at 30 September  2020 
Cat. I (6)  Cat. II (3)  Cat. III (8)  
Bolivia, Plurinational State of  Democratic Republic of the Congo  Antigua and Barbuda  
Cuba Senegal  Burundi*  
Ghana  Yemen  Central African Republic*  
Guinea    Congo  
Tonga    Guinea -Bissau*  
Zambia    Niger  
    Sierra Leone*  
    Venezuela, Bolivarian Republic of  
*  Members not compliant with Payment Plan terms.  
3.2.  At the end of June 2020, two Observer s were subject to Category I of the Administrative 
Measures ; one Observer was subject to Category II ; and three Observer s were subject to 
Category  III (Inactive) . No changes have occurred since the June report.  
Table 3 Observers under Administrative Measures as at 30 September  2020 
Cat. I (2)  Cat. II (1)  Cat. III (3)  
Iran Comoros  Libya   
Syrian Arab Republic   Sao Tomé and Principe  
    Somalia   
 
3.3.  Table 4 shows the Member subject to a Payment Plan  as at 30 September  2020. 
Table 4 Member following a Payment Plan as at 30 September  2020 (in CHF)  
Member   GC 
approval 
date Plan 
duration  
in years  End of 
plan Last 
payment  
received  Amount 
Outstanding  
for 2020  Total 
Outstanding 
Contributions  
Chad 2012 15 2026 13-Feb-20 116,651  581,961  
Total          581,961  
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  3.4.  The four Members listed  in the table below are not compliant with their Payment Plan terms  
and have thus reverted to Category III of the Administrative Measures.  
Table 5 Members not compliant with their Payment Plan  as at 30 September  2020 (in 
CHF)  
Member  GC 
appro -
val 
date End 
of 
plan Last 
pay- 
ment  
recei -
ved Amount 
Outstan -
ding prior 
to 2017  Amount 
Outstan -
ding 
for 2017  Amount 
Outstan -
ding 
for 2018  Amount 
Outstan -
ding 
for 2019  Amount 
Outstan -
ding 
for 2020  Total 
Outstan -
ding 
Contri -
bution s 
Burundi  2011 2030 2017 375,791  65,785  65,785  65,785  65,785  638,931  
Central 
African 
Republic  2018 2047 2019 828,058  -  -  28,256  57,472  913,786  
Guinea -
Bissau  2017 2046 2017 582,156  134 51,716  51,716  51,716  737,438  
Sierra Leone  2012 2025 2016 322,708  - 3011 93,866  93,866  513,451  
Total        2,108,713  65,919  120,512  239,623  268,839  2,803,606  
 
4  2020 BUDGETARY EXPENDITURE  
Table 6 Consolidated Statement of Budgetary Expenditure  as at 30 September  2020  
(in kCHF)  
Part Section  Budget  Expenditure  Commitment  Balance  % 
Exp 
A Staffing 
Resources  1. Staff Expenditure  131,415  87,417  35 43,964  67% 
  2. Temporary 
Assistance  17,275  12,467  3,949  859 95% 
A Staffing Resources Total   148,690  99,884  3,984  44,822  70%  
B Other 
Resources  3. General Services  15,376  8,269  5,920  1,188  92% 
  4. Travel & 
Hospitality  7,607  1,304  57 6,245  18% 
  5. Implementing 
Partners  213 73 0 140 34% 
  6. Capital 
Expenditure  2,095  1,346  2,184  -1,436  169%  
  7. Financial 
Expenditure  1,780  1,413  0 367 79% 
B Other Resources Total   27,071  12,406  8,162  6,503  76%  
C Operating 
Funds and ITC  8. Contributions to 
ITC & Special 
Reserves  21,443  16,882  0 4,561  79% 
C Operating Funds and ITC Total  21,443  16,882  0 4,561  79%  
Grand Total    197,204  129,172  12,146  55,886  72%  
4.1.  The overall expenditure as at the end of the third quarter of  2020 is on track with an overall 
expenditure rate  (including commitments)  of CHF  141 million , representing 72% of the budget.  
Compared to the budget situation in September  2019, the expenditure rate was 76% or 
CHF 149 million.  
Part A - Staffing Resources  
4.2.  Part A of the budget includes  expenditure for regular staff related to salary, pension, health 
insurance, death and invalidity insurance, staff benefits , travel, removal and installation. It also 
includes expenditure related to short term staff, consultants  and panelists . 
4.3.  Under the Section Staff Expenditure, the underspending is due to the high number of vacant 
posts during the first half of the year . This is partly offset by a higher expenditure rate  under 
Temporary Assistance  and under IT consultants . Compared to the situation as at the end of WT/BFA/W/ 535 
 
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  September 2019,  the expenditure under translation and interpretation as well as Panelists'  Fees is 
lower, which is mostly due to the number of cancelled meetings following the COVID -19 pandemic.   
Part B - Other Resources  
4.4.  Part B of the budget relates to expenditure for general services, travel and hospitality, activities 
jointly funded by the WTO and third parties, as well as capital and financial expenditure.  
4.5.  Under General Services , the commitments for several contracts are recorded for  the full year. 
These include the outsourced security contract (CHF 3. 6 million), the cleaning contract 
(CHF 1 million), the International Computing Centre (CHF 1.7 million), the Service Desk 
(CHF 1.1 million) as well as the annual commitments  for utilities such as heating, water and 
electricity.  The overall actual expenditure rate under General Services was reduced by approximately 
3% (CHF 0.7 million ) compared to prior years, mostly due to the COVID -19 pandemic . The areas of 
lower spend were  mainly utilities and the external security provider. This was partly offset by the 
purchase of sanitary supplies such as masks, plexiglass separations and higher e xpenditure on office 
cleaning  and disinfection . 
4.6.  Under the Section "Travel and Hospitality ", the expenditure decreased  significantly due to the 
COVID -19 pandemic  (15% expenditure rate in September 2020 compared to 71% in 
September  2019) , as many  activities were cancelled  or deferred  since March. In this regard, for the 
activities  where bookings for travel were already made e.g. some TA activities and MC12, t he 
Secretariat is in the process of negotiating and/or receiving reimbursements for those activities. The 
process is still ongoing.  
4.7.  The Section "Capital Expenditure " includes the procurement of fixed assets such as computing 
hardware and software, office furniture and security equipment.  The expenditure under this section 
has increased signific antly which is mainly due to the purchase of software to hold virtual meetings  
through various platforms  as well as audio -visual equipment and licen ses.  
4.8.  The Section "Financial Expenditure " relates to the  repayment of the interest -free loan from the 
Swiss Government, bank charges and negative interest. The Swiss Government lent CHF  60 million 
to the WTO, payable over 50 years at an annual amortization of CHF 1.2 million.  
Part C - Operating Funds and ITC  
4.9.  Part C of the budget relates to the contributions to the International Trade Centre (ITC) , the 
Building Renovation Fund, the Ministerial Conference Operating Fund and the Appellate Body 
Operating Fund .  
4.10.  Under Part C,  the Ministerial Conference Operating Fund and the Building Renovation Fund 
have been replenished  with amounts for the full year , at CHF 600,000 each . The Appellate Body 
Operating Fund has been replenished with CHF  2 million . The contribution for the ITC has been 
recorded  for the first nine months.  
4.11.  Table 7 shows the movement and balance in the Appellate Body Operating Fund as at the end 
of September  2020.  
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  Table 7 Appellate Body Operating Fund as at 30 September  2020  
Statement of Appellate Body Operating Fund Expenditure  kCHF  
Opening Balance as at 1  January  2020  0 
Allocation from the regular budget to the Appellate Body and its Secretariat  2,000  
Sub-Total  2,000  
Expenditure in 2020:    
Appellate Body Members' daily fees  -661 
Appellate Body Members' air tickets  -122 
Appellate Body Members' DSA  -63 
Appellate Body Members' Rental Subsidy  -16 
Postage  0 
Total expenditure  -100 
Closing balance as at 30 September 2020  1,900  
 
Expenditure and Savings related to the COVID -19 Pandemic  
4.12.  With respect to the COVID -19 Pandemic, the most significant decrease in expenditure 
occurred under Travel. The actual expenditure rate at the end of September amounts to 15% 
(CHF 1.1 million) compared to an expendit ure rate of 71% (CHF 5.1 million) for the comparable 
period in 2019. Considerable savings have also been realized under the external security provider 
(CHF 0.3 million) because of a significant reduction of staff working on site, no visitors/delegations, 
the closure of all access points , except the main entrance and almost no deliveries. Furthermore, 
savings have been realized under translation ( 9% or CHF 0. 5 million) and interpretation ( 11% or 
CHF 0. 2 million) and panelists'  fees (50% or CHF 0.5 million) , postal expenditure (16% or 
CHF 0.05 million) and  utilities (between 10% on water , 5% on electricity and 3% on heating) .  
4.13.  These savings were reallocated to needs which were not foreseen and were driven by the 
responses to the COVID -19 pandemic. These include the implementation of software to hold virtual 
meetings (CHF  1.4 million), the purchase of various software licenses of CHF 300,000  and the 
expenditure for the IT consultants implementing the software (CHF 700,000 ), the purchase of audio -
visual equ ipment and licenses of CHF 200,000  and the purchase of sanitary supplies and other costs 
related to protection measures (masks, plexiglass partitions  and signage amounting to CHF 100,000 ) 
and the increased payments under the cleaning contract (7% or CHF  60,000 ). 
__________  
 
 
1 Daily fees for January to March 2020.  
2 This amount excludes air ticket cancellations due to COVID -19. The expectation is that some of the 
amounts  will be reimbursed by the concerned airline carriers. Frequent follow up is undertaken through the 
official WTO travel agent.  
3 DSA from 16 -27 March 2020.