RESTRICTED  
  
WT/BFA/W/ 628 
1 May 2023 
(23-2995) Page: 1/5 
Committee on Budget, Finance and Administration   
 
  
WTO BUDGET AND FINANCE REPORT – 1ST QUARTER 20 23 
1  CONTRIBUTIONS FROM MEMBERS AND OBSERVERS  
1.1.  Contributions received from Members as at the end of March 20 23 were lower  than those 
received for the same period in previous years . This is mainly due to the fact that some Members 
that historically transferred their annual contributions during the fourth quarter in previous years 
transferred their 2022 contributions during the firs t quarter.  The year 2021 was equally negatively 
affected by deferred payments in contributions.  Such delays have a demonstrably negative effect 
on financial and budgetary planning for the year because the Secretariat cannot be assured that it 
can expend its full budget. The need to mitigate this risk puts additional pressure on the Secretariat 
already constrained with a zero nominal growth budget.  
Figure 1 Total Receipts in MCHF as at 31 March  
 
 
1.2.  At the end of the first quarter of 2023, 37% of the Members had no outstanding balance.  
1.3.  The receipts of contributions during the 1st quarter of 20 23 from Observers amounted to 
CHF 183,067 , representing 25% of the assessed amount.  Five Observers had no outstanding 
balance.  
Table 1 Status of contributions as at 31 March  2023 (in CHF)  
Contributions  164 Members  25 Observers  
Total net assessment for 2023   195,500,000   733,125  
Payment received for 2023 (% of total assessment)  (50%)  98,378,417  (25%)  183,067  
Payment received for prior years   5,028,323   85,608  
No outstanding balance (% of total)  (37%)  60 (20%)  5 
 
 
 
 
 
105.4 105.9 109.0100.5110.9 108.5 106.8124.9135.7
103.4
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023WT/BFA/W/ 628 
 
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2  CASH SITUATION  
2.1.  The cash situation at the end of March  2023 is satisfactory and at a slightly lower  level than at 
the end of  March  2022. 
 
 
3  MEMBERS AND OBSERVERS UNDER ADMINISTRATIVE MEASURES  
3.1.  At the end of the first quarter of 2023, seven  Members were subject to  Category I (more than 
one year and  less than two years outstanding  contributions ) of the Administrative Measures ; 
five Member s were subject to Category II (two  years or more  but less than three years outstanding  
contributions ); and nine Members were subject to Category  III (three  or more years of outstanding  
contributions  = Inactive) . 
Table 2 Members under Administrative Measures as at 31 March  2023 
Cat. I (7)  Cat. II (5)  Cat. III (9)  
Afghanistan  Bolivia, Plurinational State of  Antigua and Barbuda  
Congo  Cuba Central African Republic*  
Ghana  Dominica  Chad*   
Liberia  El Salvador  Guinea   
Malawi  Uganda  Guinea -Bissau   
Sri Lanka    Niger*   
Suriname    Papua New Guinea  
    Venezuela, Bolivarian Republic of  
    Yemen   
*  Members not compliant with Payment Plan terms.  
 
3.2.  At the end of March 2023, no Observer s were subject to Category I of the Administrative 
Measures ; five Observer s were subject to Category II ; and another four Observer s were subject to 
Category  III (Inactive) . 
Table 3 Observers under Administrative Measures as at 31 March  2023 
Cat. I (0)  Cat. II (5)  Cat. III (4)  
  Comoros  Iran  
  Ethiopia  Sao Tomé and Principe  
  Iraq Somalia   
  Lebanese Republic  Syrian Arab Republic  
  South Sudan     
 
3.3.  Table 4 shows the Member s subject to a Payment Plan  as at 31 March 20 23. 
WT/BFA/W/ 628 
 
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  Table 4 Member (s) following a Payment Plan as at 31  March 20 23 (in CHF)  
Member  GC 
approval 
date Plan 
duration  
in years  End of 
plan Last 
payment  
received  Amount 
Outstanding  
for 2023  Total Outstanding 
Contributions  
Burundi  2011 20 2030 16-Jan-23 65,785  321,012  
Sierra Leone  2012 15 2025 22-Feb-22 93,866  222,951  
Total          159,651  543,963  
 
3.4.  The three  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 s as at 31 March  2023 (in CHF)  
Member  GC 
appro
-val 
date End 
of 
plan Last pay -
ment  
received  Amount 
Outstan -
ding prior 
to 2020  Amount 
Outstan -
ding 
for 2020  Amount 
Outstan -
ding 
for 2021  Amount 
Outstan -
ding 
for 2022  Amount 
Outstan -
ding 
for 2023  Total 
Outstanding 
Contributions  
Central 
African 
Republic  2018 2047 Oct-20 707,088  57,472  57,472  56,002  57,472  935,506  
Chad 2012 2026 Feb-20 232,657  116,651  116,651  109,120  108,831  683,910  
Niger  2020 2026 May-22 147,714          -            -  1,142  78,563  227,419  
Total        1,087,459  174,123  174,123  166,264  244,866  1,846,835  
 
4  2023 BUDGETARY EXPENDITURE  
Table 6 Consolidated Statement of Budgetary Expenditure  as at 31 March  2023 (in kCHF)  
Part Section  Budget  Expenditure 
and 
Commitments  Balance  % 
Expenditure 
vs Budget  
A Staffing 
Resources  1. Staff Expenditure  131,565  29,705  101,861  23% 
  2. Temporary 
Assistance  17,575  9,832  7,742  56% 
A Staffing Resources Total  149,140  39,537  109,603  27%  
B Other 
Resources  3. General Services  15,626  12,184  3,443  78% 
  4. Travel & Hospitality  7,607  2,648  4,959  35% 
  5. Implementing 
Partners  213 110 103 52% 
  6. Capital Expenditure  3,095  1,476  1,618  48% 
  7. Financial 
Expenditure  2,080  11 2,069  1% 
B Other Resources Total  28,621  16,430  12,191  57%  
C Operating 
Funds and ITC  8. Contributions to ITC 
& Special Reserves  19,443  5,761  13,682  30% 
C Operating Funds and ITC Total  19,443  5,761  13,682  30%  
Grand Total    197,204  61,727  135,477  31%  
4.1.  The expenditure as at 31 March 2023 amounts to CHF 62 million  with an overall expenditure 
rate of 31%. 
Part A - Staffing Resources  
4.2.  Part A of the budget comprises expenditure for regular staff related to salary, pension, health 
insurance, death and invalidity insurance, staff benefits , travel  related to recruitment, home leave 
and separation , removal , and installation. It also includes expenditure related to short term staff, 
consultants,  and panelists . 
4.3.  Under Staff Expenditure,  the mandatory salary scale increase of 3.1% for fixed -term and 
temporary staff as a result of the annual salary survey (described in WT/BFA/W/620 ) was 
implemented in March and is putting additional pressure on the expenditure under staffing resources. WT/BFA/W/ 628 
 
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  The slight underspending under Staff Expenditure is due to a high numb er of staff departures since  
the beginning of the year , but it is not clear that the increased rate will continue throughout the 
year. Over -expenditure was registered under Short -term Staff , Interns , Death & Invalidity 
Insurance,  and External Translators . 
4.4.  To manage the increase in staff expenditure, the Director -General, the Deputy Directors -
General, and the Chief of Staff have been examining each fixed -term vacancy to determine whether 
it should be refilled. In addition, senior management has been examining each short -term contract 
renewal request to determine its priority and reduce where possible. Finally, cuts and deferrals of 
expenditure for IT consultants have reduced the consultant expenditure under Part A of the budget, 
as well as severa l expenditure lines under Part B, while still retaining priority projects.  
Part B - Other Resources  
4.5.  Part B of the budget relates to expenditure for general services, travel and hospitality, activities 
jointly funded by the WTO and third parties,  capital  expenditure , and financial expenditure.  
4.6.  The full year's commitments for several contracts such as the outsourced security contract 
(CHF 3. 3 million), the cleaning contract (CHF 1 million), the International Computing Centre 
(CHF 2.4 million) , and utilities such as electricity, heating , and water  are included  under General 
Services . Under the IT Service Desk, a cut of one position has been implemented.  
4.7.  Under "Travel and Hospitality ", the expenditure rate related to travel amounts to 36%. This is 
mainly due to the catch up of travel activity in all areas after the pandemic, the cost increase in 
airfare and hotels due to the increase in inflation , and some commitments for te chnical assistance 
related courses.  To limit the increase under travel expenditure, Directors have been instructed to 
limit unnecessary travel and to save costs where possible.  
4.8.  Under "Implementing Partners", the high expenditure rate is due to several annu al 
contributions to professional networks  and contributions to the overhead costs of the International 
Labor Office for ongoing cases.  
4.9.  "Capital Expenditure " includes the procurement of fixed assets such as computing hardware 
and software, office furniture , and security equipment.  The relatively high expenditure rate under 
this Section  is related to expenditure and commitments for  computing software  and for rental and 
leasing of equipment.  A cut under IT expenditure for hardware has been implemented under this 
budget line to contain expenditure.  
4.10.  The Section  for "Financial Expenditure " includes the annual reimbursement of the 50 -year 
interest -free loan for the new premises , amounting to  CHF 1.2 million, which will be  paid at the 
beginning of June . This Section  also includes bank charges and negative interest . 
Part C - Operating Funds and ITC  
4.11.  Part C of the budget relates to  the contribution to the International Trade Centre  for the first 
quarter  (CHF 4.6 million ) and allocations to  the Ministerial Conference Operating Fund 
(CHF 0.6 million) and the Building Renovation Fund  (CHF 0.6 million)  for the full year . 
5  MULTI -YEAR CONTRACTS  
5.1.  Financial Regulation 22 stipulates that commitments for future financial periods for normal 
ongoing activities that are more effectively procured using a multi -year approach shall be listed in 
the financial reporting when they exceed CHF 2 million. The following multi -year contracts were in 
force as at 31 March 202 3: 
i. Physical Security: 1 January 2019 until 31  December  2025. 
ii. Service Desk (CERFI):  1 Jan 2015 to 28 February 2024 . WT/BFA/W/ 628 
 
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  iii. United Nations International Computing Centre: 1  January 2022 until 
31 December  2023.  
iv. Cleaning Services: 1 January 2019 until 31  December  2023.  
v. Travel Management and Visa Processing Services: 1 Ja nuary 2023 until 3 0 April 2024. 
vi. Multi-technical maintenance for the WTO building: 1  January 2020 until 
31 December  2024.  
vii. WTO HR insurance: 1 January 2023 until 31  December  2025.  
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