RESTRICTED  
  
WT/BFA/W/485  
 
5 June 2019 
(19-3861) Page: 1/5 
Committee on Budget, Finance and Administration    
 
REVIEW OF SELECTED FINANCIAL REGULATION S OF THE  
WORLD TRADE ORGANIZA TION  
1  BACKGROUND  
1.1.  Financial Regulation 4 stipulates that the Financial Regulations of the World Trade Organization 
shall be reviewed by the Committee on Budget, Finance and Administration (CBFA) at least every 
four years.  
1.2.  Financial Regulation 4 further  states that only the General Council has the authority to amend 
the Financi al Regulations , on recommendation by the CBFA . 
1.3.  The Financial Regulations of the World Trade Organization that are currently in force are 
contained in document WT/L/156/Rev.3, dated 27 February 2015.  Therefore, a revi ew is due.  
2  FINANCIAL REGULATION S THAT ARE PROPOSED FOR REVIEW 
2.1.  During its meeting on 30 April 2019  the Committee considered reformulated text for Financial 
Regulations 4, 17, 19, 23, 27, 28, 29, 37, 38 and 42 , presented  through document WT/BFA/W/478 . 
The CBFA endorsed the revised text for Financial Regulations 4, 17 , 37, 38 and 42  and request ed 
modifications to the text proposed for Financial Regulations 19, 23, 27, 28  and 29. The Committee 
agreed to consider the amended text during its meeting scheduled for  17th June 2019.  
2.2.  Table 1 of this document WT/BFA/W/ 485 presents  the updated reformulation of F inancial 
Regulations 19, 23, 27, 28  and 29. In addition, a reformulation of Financial Regulation 26 is included, 
to state that the CBFA is the body that will make a recommendation  to the General Council under 
Financial Regulation 26(b).  This enhances  clarity in Financial Regulation 27  (b).   
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  WT/BFA/W/485  
 
- 2 - TABLE 1 – FINANCIAL REGULATION S PROPOSED FOR REFORM ULATION  
FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
19 Voluntary contributions, gifts or donations from WTO Members and Observers may be accepted by the Director -General provided 
that the purposes for which the contributions are made are consistent with the policies, a ims and activities of the WTO, and 
provided that the acceptance of such contributions which directly or indirectly involve additional financial liability for the WTO 
shall require the consent of the Committee. The Committee will be notified of all voluntar y contributions that lead to the 
establishment of a new trust fund.  Guidelines for such notification are laid out in Annex C.   
 
Voluntary contributions, gifts or donations from Non -Governmental Donors are subject to the additional guidelines laid out in 
Annex D.  
 
Monies accepted for purposes specified by the donor shall be treated as trust funds. A standard overhead fee of up to 13% may  
be charged on direct expenditure incurred by trust funds to reflect supporting services provided by the Secretariat. The standard 
overhead rate can be reduced when implementing partners are being used and when defined in the agreement signed with the 
donor. The Programme Support Fund collects the overhead fees from all trust funds and pays expenditure incurr ed to support 
the trust fund 's activities. The Programme Support Fund also releases a fee representing 10% of its expenditure to the WTO 
Secretariat , that will record it as miscellaneous income.  
 
Monies accepted in respect of which no purpose is specified  shall be treated as miscellaneous income and reported as "gifts" in 
the accounts of the financial period.  
 
Monies received by a staff Member as honora rium in his/her official capacity shall be remitted to the Organization and be credited 
to the WTO Staff  Assistance Fund.  
 
Unless otherwise provided, such voluntary contributions, gifts or donations shall be administered in accordance with the pres ent 
Financial Regulations.  
 
23 a) The budgetary result is defined as the sum of assessed contributions and projected miscellaneous income, less , the sum of 
actual expenditure and actual miscellaneous income.  
  
b) The actual expenditure does not take into account the variations in the actuarial provisions for the long -term liabilities 
associate d with staff pensions and After Service Health Insurance if they have not been included in the approved budget.  
  
  WT/BFA/W/485  
 
- 3 - FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
c) The annual budgetary result shall be reported in the WTO Financial Performance Report. The Director -General shall make 
specific recommendati ons to the General Council , through the Committee,  for the redistribution of the annual budgetary surplus 
to a specific part of the WTO's equity, which may be:  
 
i) The Working Capital Fund; or  
ii) Reserves.  
 
d) The sum  of the budgetary result for the period and IPSAS adjustments, including the actuarial provisions for pension and 
After Service Health Insurance, determine the WTO year -end financial result.  
 
e) If at the end of a financial period the financial result shows a positive balance , the Directo r-General shall make proposals to 
the Committee with regard to its use , which may be:  
  
i) application as income against the budget for the next applicable financial period following that in which the surplus 
occurs, thereby reducing Members' contributions;  
ii) transfer to the Working Capital Fund;  
iii) transfer to the Surplus/Deficit Account;  or 
iv) use for any other purpose decided upon by the General Council.  
  
f) If at the end of a financial period the financial result shows a negative balance , it shall be transferred to the Surplus/Deficit 
Account.  
  
26 The Director -General is authorized to advance from the Working Capital Fund:  
 
a) such sums as may be necessary to finance budgetary appropriations pending receipt of contributions;  
b) in exceptional circumstances , subject to prior authorization of the General Council  on the basis of a  recommendation from 
the Committee, such sums as  may be necessary to finance commitments relating to extraordinary expenditure.  
  
  WT/BFA/W/485  
 
- 4 - FINANCIAL 
REGULATION  PROPOSED REFORMULATION OF SELECTED REGULATIONS  
27 
 (a) Sums advanced under Financial Regulation  26(a) shall be reimbursed to the Working Capital Fund as soon as receipts from 
contributions are available for the purpose.  
 
(b) The replenishment of sums advanced in accordance with Financial Regulation 26(b) will require a decision by the General 
Counc il, based on a recommendation of the Committee . 
 
28 
 The General Council may return  all or part of the sums constituting the Working Capital Fund if the WTO equity has a positive 
balance. If such sums are derived from monies placed in the Working Capital Fund under Financial Regulation 24(a), they shall 
be returned to the Members which h ave contributed to the Working Capital Fund in proportion to their respective shares in the 
Working Capital Fund.  
 
29 Subject to a decision by the General Council, and if the  WTO equity has a positive balance, countries or separate customs 
territories whi ch for any reason cease to be Members of the WTO shall be entitled to the reimbursement of the total amount of 
their shares in the Working Capital Fund under Financial Regulation 24(a)  provided that they have honoured all liabilities 
attributable to them . 
 
 
3  RECOMMENDATION  
3.1 The Committee invites the General Council to approve the revised Financial Regulations of the World Trade Organization, to be 
contained in document WT/L/156/Rev.4, with specific revisions to Financial Regulations 4, 17, 19, 23, 26, 27, 28, 29, 37, 38 and 42 . 
 
 
 
 
 
 
 
 
 
 
 
 
  WT/BFA/W/485  
 
- 5 - 
 
  ANNEX C  
WTO SECRETARIAT'S GUIDELINES FOR THE R ECEIPT AND NOTIFICAT ION OF 
VOLUNTARY FUND CONTR IBUTIONS  
• In keeping with a commitment to streamline the procedures for the notification, approval, 
implementa tion and reporting on voluntary fund contributions, the Director General has 
authorised the following guidelines which are aimed at improving transparency and consistency 
in the handling of all voluntary funds. These procedures shall be applied in strict c onformity with 
Financial Regulation 191. 
• In the case of formal pledges made for the future establishment of a fund or funds, these pledges 
will be notified to members for transparency purposes. Once an actual Fund is proposed in 
furtherance of the pledge, it will be notified as such, in accordance with the guidelines below.  
• All voluntary funds will be submitted to the Director General for his consideration and may be 
accepted where he determines that "...the purposes for which the contributions are made ar e 
consistent with the policies, aims and activities of the WTO".  
• In considering the proffered voluntary contribution, the Director General will receive the 
Administration and General Services Division´s (AGSD) determination whether the contribution 
would i nvolve direct or indirect financial liability for the WTO.  
• When the Director General assesses the proffered funding positively, and upon receipt of the 
AGSD´s assessment, a notification will be transmitted promptly to the Committee on Budget 
Finance and Ad ministration (CBFA) for consideration.  
• Where the voluntary fund involves no additional financial liability the CBFA will be notified 
within 14 days of the Director General´s receipt of the assessment  and any Member so 
inclined can express its views.  
 
• Where  the voluntary fund contribution involves direct or indirect financial liability, the 
notification will be submitted for consideration and consent by the CBFA within 14 days 
of the Director General´s receipt of the assessment . 
 
• The Secretariat will give detailed notification of all trust funds arising under voluntary fund 
arrangements and will make available supporting documentation to members where required.  
• The trust fund notification will outline : 
• The objectives of the trust fund ; 
• The expected beneficiaries (if specified) ; 
• The implementation strategy ; 
• The expected deliverables ; 
• The amount of the funding dedicated to the trust fund ; 
• The expected duration ; 
• The implementation partners identified ; and 
• The Secretariat focal points for the tr ust fund.  
 
 
__________  
                                                
1 Regulation 19: "Voluntary contributions, gifts or donations from WTO Members and Observers may 
be accepted by the Director -General provided that the purposes for which the contributions are made are 
consistent with the policies, aims and activities of the WTO, and provided that the acceptance of such 
contributions which directly or indirectly involve additional financial liability for the WTO shall require the 
consent of the Committee. Voluntary contributions, gifts or donations from Non -Governmental Donors are 
subject to the additional guidelines laid out in Annex C…."