RESTRICTED  
  
WT/BFA/W/498  
 
11 October 2019  
(19-6588) Page: 1/17 
Committee on Budget, Finance and Administration    
 
 
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IMPLEMENTATION STATUS OF EXTERNAL AUDIT RE COMMENDATIONS  
 
1  BACKGROUND  
1.1.  This document presents the status update relating to the findings of the WTO's External 
Auditors and the ir implement ation by the Secretariat.  
1.2.  This report is based on  the financial and performance audit s which were conducted from 1 April 
to 10 May 2019.  
1.3.  Following each audit session, the External Auditors reviewed the previously issued 
recommendations and updated their status according to the following categories:  
a. Close d/to be closed : recommendation was implemented by the Secretariat.  
b. Work-in-Progress ( WIP)/ongoing: 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.  
2  SUMMARY  OF RATE OF IMPLEMEN TATION   
2.1.  The External Auditors, the Supreme Audit Institution of Germany, began their activities in 2015 
and have issued a total of 75 recommendations . 55 recommendations were for issued between 2015 
and the end of 2018. 20 new recommendation s were issued in June 2019 . 
2.2.  To date, 50 out of 55 past recommendations  have been suc cessfully closed , 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 Audit Report issued in 
June 2016 have been implemented. The remaining recommendation  is still in progress and is 
closely followe d 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 ; and  
• 7 out of 11 recommendations (64%) related to External Audit Report issued in June 201 8 have 
been closed or are to be closed . 
2.3.  The External Audit Report presented to the CBFA in June 201 9 included 20 new 
recommendations , of which 5 were related to financial matte rs and 15 to the performance  audit of 
to the  Human Resources  area.  
2.4.  So far,  5 recomm endations (25%)  have been implemented .  
2.5.  The Secretariat will work on the remaining recommendations . Their status of implementation 
will be evaluate d during the next interim audits , foreseen for November 2019 and February 2020.  WT/BFA/W/ 498 
 
- 2 - 
 
  2.6.  The current status of the audit recommendations is summarized  in Annex 1 of this 
document  - Status of Audit Recommendations . 
2.7.  Annex 2 contains details  of pending recommendations comprising of newly issued  
recommendations and those  awaiting  confirmation of their closure by the External Auditors . 
 
_______________  
  
  WT/BFA/W/4 98 
 
- 3 - ANNEX 1: STATUS OF AUDIT RECOMMENDATIONS AS AT 30 SEPTEMBER  2019  
STATUS OF PAST AUDIT RECOMMENDATIONS AS AT 30 September 2019  
Audit Activity  Report 
Year Total Number of 
Recommendations  Implementation Status  
Accepted  Closed1 WIP2 Open3 
Financial Audit for the year end ed 31.12.2014  2015 7 7 7 0 0 
Performance Audit o f IT & Procurement  2015 7 7 7 0 0 
Financial Audit for the year end ed 31.12.2015  2016 4 4 4 0 0 
Performance Audit o f Facility Management, Security and Implementation of 
the Recommendations from the Strategic Review    2016 13 13 12 1 0 
Financial Audit for the year end ed 31.12.2016  2017 5 5 5 0 0 
Performance Audits of Confidentiality  of Information  and Ministerial 
Conference s 2017 8 8 8 0 0 
Financial Audit for the year end ed 31.12.2017  2018 2 2 1 1 0 
Performance Audit o f Travel and Consulting Services  2018 9 9 6 3 0 
Total 2017 and Prior Years   55 55 50 5 
0 
91% 9% 
Financial Audit for the year end ed 31.12.2018  2019 6 6 3 3 0 
Performance audit o f Human Resources  2019 14 14 2 12 0 
Grand Total    75 75 55 20 
0 
73% 27% 
 
                                                
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 to be addressed by the Secretariat.   
  WT/BFA/W/4 98 
 
- 4 - ANNEX 2: PENDING RECOMMENDATIONS  (AS AT 30 SEPTEMBER 2019 ) 
 
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 sele cted 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 update 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.  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.    
 
I maintain the recommendation of preparing an action plan 
for running the WTO with growing outstanding contributions.   February 2019  
The CBFA has 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.  
October 2019  
The Secretariat has approved 
an additional  transfer of the 
budget ary result of 2018 to the 
Working Capital Fund.  Ongoing  
 High  
  WT/BFA/W/4 98 
 
- 5 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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 . 
October 2019  
The Secretariat is still looking 
into this.  Ongoing  Medium  
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 curr ently 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.  
October 2019  
The new Travel policy has been 
finalized, the recommendation 
can be closed . To be 
closed1 Low 
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  
A prototype to extend the 
solution to non -WTO travel lers Ongoin g Medium  
                                                
1 Recommendation has been implemented after the last spring audit; status has therefore changed in "to be closed" as the audito rs shall confirm the closure i n 
the next ad interim audit planned in November 2019.   
  WT/BFA/W/4 98 
 
- 6 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
was delivered and t he WTO is 
working on the amendment of 
the initial contract with 
MobileXpense. A project plan is 
being finaliz ed, with the 
objective of implementing the 
utilization of MobileXpense  for 
non-WTO travellers at the end 
of 2019.  
October 2019  
In progress.  
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 recommend calculating advances in line with regulations.  February 2019  
Change to adjust the 
calculation of the DSA advance 
in Mobil 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  
The T ravel Policy has been 
finalized . This includes the 
automatic  settlement of 
advances  in MobileX pense. The 
recommendation can be 
closed . To be 
closed2 Medium  
                                                
2 Recommendation has been implemented after the last spring audit; status has therefore changed in "to be closed" as the audito rs shall confirm the closure in 
the next ad interim audit planned in Novem ber 2019.   
  WT/BFA/W/4 98 
 
- 7 - 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 accordin gly in the travel 
request.  February 2019  
In March  2019, AGSD will send 
notifications to all Admin 
Assistants in charge of travel 
claims to inform them about 
the end of Phase 1 of 
Mobile Xpense 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 be 
closed . To be 
closed3 Low 
54 Open travel 
expense reports  4.1 / 2017  Travel expense reports in MobileXpense are considered 
"open".  
I recommend making a settlement as soon as possible, which 
means when cases are technically completed.  February 2019  
Automatic settlement of open 
expense reports is ready for 
implementation . In March 2019 
a communication will be sent to 
relevant stakeholder s to 
announce the beginning of this 
process as of 1 April 2019.  
 To be 
closed4 Low 
                                                
3 Recommendation has been implemented after the last spring audit; status has therefore changed in "to be closed" as the audito rs shall confirm the closure in 
the next ad interim audit planned in November 2019.  
4 Recommendation has been implement ed after the last spring audit; status has therefore changed in "to be closed" as the auditors shall confirm the closure in 
the next ad interim audit planned in November 2019.   
  WT/BFA/W/4 98 
 
- 8 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
October 2019  
Automatic settlement is 
properly functioning since July. 
The recommendation 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.  
October 2019  
The drafted new guideline is 
still under review . Ongoing  High 
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  
The requisite f orm to update 
the bank signat ories has been  
prepared and  is to be sent to 
the DG 's Office. 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.  
 To be 
closed  Medium   
  WT/BFA/W/4 98 
 
- 9 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
October 2019  
The Secretariat will implement 
the recommendation in the 
2019 Financial Performance 
Report . 
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 . To be 
closed  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 expectancy, the monthly 
amount as well as payments 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 long term (legal) obligations.  October 2019  
These provisions were 
introduced  in order to 
implement a previous 
recommendation by the 
External Auditor - audit 
recommendation 33 "provision 
for invalidity case" which has 
been closed (Audit report 
2016, paragraph 3.1.1.).  This 
recommendation should be 
closed.  To be 
closed  Medium   
  WT/BFA/W/4 98 
 
- 10 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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 June 2020. 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 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.  June 2019  
The Secretariat accepts the 
recommenda tion and will 
implement it in the 2019 
Financial Performance Report.  
October 2019  
The Secretariat will implement 
the recommendation in the 
2019 Financial Performance 
Report . Ongoing  High 
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 the development of Standard Operating Procedures as 
well as progress to avoid conflict of interest. However, the 
final adjustments and decisions are still pending.  June 2019  
Gaps were identified by a 
management consultancy firm 
in early 2018. To address 
these, the Secretariat initi ated 
a project to put a robust 
Human Resources Information 
System (HRIS) in place. 
Significant work was done, in 
collaboration with an external 
consultant, to map out current 
processes. In addition, there Ongoing  High  
  WT/BFA/W/4 98 
 
- 11 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
I recommend that WTO finalize the process description soon 
to ensure a smooth workflow with a transparent and clear 
allocation of tasks and resp onsibilities. 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 des cription internally 
with all process participants. The consensual version of 
process descriptions should then be authorized accordingly.  are "as -is" process workbooks 
for all HR processes indicating 
the tasks/steps, 
responsibilities and 
interactions required. 
Furthermore, the gaps 
identified by external 
consultant resulted in 
recommendations to develop 
Standard Operating 
Procedures. This is in progress. 
The project is estimated to 
conclude in 2020.  
October 2019  
HRD has started developing 
Standard Operati ng 
Procedures . Se veral have 
already been finalized . 
Conclu sion is planned for mid -
2020.  
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 Secretaria t 
will finalize the necessary 
documentation by 2020 as this 
is a 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.  Ongoing  High  
  WT/BFA/W/4 98 
 
- 12 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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 thi s 
recommendation is still in 
progress . Ongoing  High 
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 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 admi nistration, payroll, recruiting and 
training, as well as performance analysis and review.  June 2019  
What is covered in this 
recommendation is already 
part of the scope of the HRIS 
project.  Ongoing  High  
  WT/BFA/W/4 98 
 
- 13 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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). October 2019  
Still in progress as part of the 
HRIS projec t. 
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 r educe 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  
Still in progress as part of the 
HRIS project.  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 reall y 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 achieveme nt 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 revised  Performance  
Management  Policy was issued 
to all staff on 4 October 2019 . 
This recommendation can be 
closed.  To be 
closed5 High 
                                                
5 Recommendation has been implemented after the last spring audit; status has th erefore changed in "to be closed" as the auditors shall confirm the closure in 
the next ad interim audit planned in November 2019.   
  WT/BFA/W/4 98 
 
- 14 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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 their 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 
situations 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 
docume ntary evidence 
justifying their eligibility on an 
annual basis.  
October 2019  
This r ecommendation can be 
closed . To be 
closed6 Medium  
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.  June 2019  
The WTO Secretariat will 
benchm ark against other 
international organizations, 
with a view to assessing the Ongoing  Low 
                                                
6 Recommendation has been implemented after the last spring audit; status has therefore changed in "to be closed" as the audi tors shall confirm the closure in 
the next ad interim audit planned in November 2019.   
  WT/BFA/W/4 98 
 
- 15 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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.  recommendation in an 
objective manner.  
October 2019  
The same as above.  
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 entitlemen ts for recreating. As a result of this 
WTO may be affected with an increase of cases of illness and 
occupational stress. Another effect may be that staff includes 
the payout for untaken annual leave for separation.  
I recommend that WTO enhance the monitori ng 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 co ntext, WTO further should raise awareness among 
the supervising directors for a better management and 
control of annual leave balances.  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 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 
staff and directors.  
October 2019  
The same as above.   Ongoing  Medium  
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.   June 2019  
The WTO agrees to work 
towards aligning the leave 
cycle with the calendar year 
and to assess measures of 
governing untaken leave.  Ongoing  Medium   
  WT/BFA/W/4 98 
 
- 16 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
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 recuper ated 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 with written regulations c oncerning the 
granting of advance 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.     October 2019  
The same as above.  
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 guidelines 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 conte xt WTO 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 ongoing  High  
  WT/BFA/W/4 98 
 
- 17 - No. Issue  Reference: 
Chapter, Year  Recommendation  WTO 's Comment / 
Implementation  Status  Priority  
should consider the recommendations by OIO to bring the 
new rules and regulations in line with other comparable 
regulations of International Organizations (Benchmark) as 
well as to avoid excessed payments and misconduct.    its feasibility. The document is 
being finalized.  
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. The document is 
being finalized.  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 also may be helpful 
to reduce the number of untake n annual leave within a 
period of two years.        June 2019  
The Secretariat is reviewing the 
issue of the two calendar weeks 
for Home Leave.  
October 2019  
A revised text of the home 
leave policy has been 
elaborated by HR and received 
input from the AGSD/T ravel for 
its feasibility. The document is 
being finalized.  Ongoing  High 
 
 
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