RESTRICTED  
  
WT/BFA/W/ 602 
5 September  2022 
(22-6600) Page: 1/3 
Committee on Budget, Finance and Administration    
 
 
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SECRETARIAT'S RESPONSES TO EXTERNAL AUDITOR 'S RECOMMENDATIONS   
ON THE AUDIT  OF THE FINANCIAL STATEMENTS OF THE  
WORLD TRADE ORGANIZATION FOR THE FINANCIAL  
YEAR ENDED 31 DECEMBER 2021  
 
 
1  PURPOSE  
1.1.  This document presents the Secretariat's responses to the External Auditor' s recommendations 
related to the  2021 WTO Financial Statements . 
1.2.  The Secretariat  accepts all the recommendations and will put measures in place to implement 
the eight recommendations .   
  WT/BFA/W/ 602 
 
- 2 - ANNEX 1: RESPONSES TO EXTERNAL AUDITOR 'S RECOMMENDATIONS ON THE AUDIT OF THE 202 1 WTO FINANCIAL STATEMENTS  
No Cour des Comptes  Recommendation  WTO Secretariat's Response  
1 The External Auditor recommends evaluating the control procedures 
and valuation methods for current fixed assets, reviewing those that 
need to be made more effective or compliant, and, at a minimum, 
carrying ou t a complete inventory of fixed assets by the time the 
Organization presents its accounts for 2022.  The Fixed Ass ets Policy requires that a comprehensive count of fixed 
assets (specifically plant and equipment) be performed at least once 
every two years.  As the previous comprehensive count had been 
conducted in early 2018, before the closure of the 2017 financial 
accounts, the next one was to be carried out in early 2020. However, 
this was not possible due to the pandemic and the lockdown of the 
building. A  partial exercise was done for some assets, in  2021. The 
Secretariat  will implement the recommendation of the External 
Auditor before closing the 2022 financial accounts.  
2 The External Auditor recommends taking note of the irrecoverable 
nature of the debt of the Government of Argentina related to the 
organization of the Eleventh Ministerial Conference and writing it off 
in full.  The Secretariat accepts , and will implement,  the recommendation . 
3 The External Auditor recommends establishing a procedure to identify, 
beyond the current short list, the Organization's related parties and 
formalizing the submission by key management personnel (within the 
meaning of IPSAS 20) of a regularly updated declaration of interest 
statement and an annual declaration of  the transactions between the 
Organization and such personnel (or their close family members).  
 The Secretariat will benchmark with other international organizations 
and come up with a list and form which will address the External 
Auditor's recommendation.  
4 The External Auditor recommends exploring the possibility, for the 
implementation of administrative measures associated with penalizing 
late payments by Member States, of consolidating the mandatory 
contribution debts with any other debts held by the Organization as a 
result of specific agreements concluded with the States concerned.  
 The Secretariat accepts the recommendation and will assess  how 
best to implement it .  
  WT/BFA/W/ 602 
 
- 3 - No Cour des Comptes  Recommendation  WTO Secretariat's Response  
5 The External Auditor recommends valuing the Pension Plan liabilities 
in a prud ent and consistent manner by using a discount rate that 
refers to market yields at the end of the reporting period on high -
quality Swiss corporate bonds, rather than to the average interest rate 
for the last 12  months on 10 -year Swiss Confederation bonds, a 
method that minimizes the value of long -term liabilities without 
justification and does not appear to be in line with IPSAS 39.  The Secretariat accepts the recommendation and will implement it.  
6 The External Auditor recommends using a single discount rate for the 
actuarial valuation of all long -term employee benefits.  The Secretariat accepts the recommendation and will implement it.  
7 The External Auditor recommends establishing a special account for 
the after -service health insurance scheme,  endowing it gradually, 
using the funds currently put into the "special reserve account" and 
extraordinary contributions, with assets capable of covering its long -
term liabilities.  The Secretariat will review the internal document issued in 2017 
(WT/BFA/W/431) establishing the Special Reserve Account and in 
line with the guidelines of Annex 4  implement the recommendation  
and use the funds to set up an asset  class for ASHI long term 
liabilities .  
8 The External Auditor recommends defining and implementing, by the 
end of the 2022  financial year, procedures for managing user 
accounts, as an essential element and for ensuring continuity of 
Workday project management.  The WTO Secretariat agrees with this recommendatio n and will work 
on the implemen tation and monitoring of a segregation of duties 
matrix for the user rights in Workday  by Q4 . 
 
 
 
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