RESTRICTED  
  
WT/BFA/W/540  
 
24 February 2021  
(21-1524) Page: 1/22 
Committee on Budget, Finance and Administration    
 
 
- 1 - 
 
STATUS OF THE IMPLEMENTATION OF EXTERNAL AUDIT RECOMMENDATIONS  
1  BACKGROUND  
1.1.  This document presents the status update concerning the recommendations proposed by the  
External Auditors  and implemented by the Secretariat  as of February 2021 . Annex 1  presents a 
recap of the status and Annex 2 presents a list showing the status of resolution of recommendations 
i.e. pending closure  or ongoing.  
1.2.  On 10 December 2019, the General Council appointed the Cour des Comptes of France  as 
External Auditors for a six -year mandate commencing with the financial year ending 
31 December  2020. The status of recommendations including those proposed by the previous 
External Auditors, will be reviewed by the Cour des Comptes of France during the  upcoming full 
audit.  
2  SUMMARY  OF RECOMMENDATIONS  
2.1.  Since the issuance of the last External Audit Report in September 2020, the Secretariat 
implemented 26 recommendations representing 49% of the total recommendations issued by the 
External Auditors in the las t 3 years. The External Auditor will validate the implementation during 
the upcoming full audit starting on 26 April 2021.  
2.2.  All the recommendations prior to 2017 have been implemented and validated by the External 
Auditors . 
2.3.  The Secretariat will continue to work on the 12 recommendations that are still outstanding  as 
at today.  
_______________  
 
 
  
  WT/BFA/W/540  
 
- 2 - ANNEX 1: STATUS OF AUDIT RECOMMENDATIONS AS OF FEBRUARY 2021 
 
STATUS OF PAST AUDIT RECOMMENDATIONS AS OF FEBRUARY 2021  
Audit Activity  Report 
Year Total Number of 
Recommendations  Implementation status  
Closed1 To be closed2 Ongoing3 Open4 
Financial Audit of year end closed as of 31.12.2017  2018 2 0 1 1 0 
Performance audit on Travel and Consulting Services  2018 9 8 1 0 0 
Financial Audit of year end closed as of 31.12.2018  2019 6 5 0 1 0 
Performance audit on Human Resources  2019 14 2 9 3 0 
Financial Audit of year end closed as of 31.12.2019  2020 7 0 3 4 0 
Performance audit on Human Resources  2020 8 0 7 1 0 
Performance audit on Trust Funds  2020 7 0 5 2 0 
Grand Total   53 15 26 12 0 28%  49% 23% 
 
 
 
  
 
1 Closed: Recommendation was implemented by the Secretariat and was validated by the External Auditor.  
2 To be closed: Recommendation was implemented by the Secretariat following the last External Audit Report in September 2020 an d needs to be validated by 
the External Auditor.  
3 Ongoing: Recommendation is accepted and under implementation by the Secretariat.  
4 Open: Recommendation is newly assigned or still under review/assessment and is to be addressed by the Secretariat.   
  WT/BFA/W/540  
 
- 3 - ANNEX 2: ONGOING  AUDIT RECOMMENDATIONS AND THOSE TO BE CLOSED  (FEBRUARY 2021) 
 
No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
45 Action plan for 
growing 
outstanding 
contributions  3.2 / 2017  
3.2 / 2018 Outstanding contributions totalled  2017: 
CHF 33.8 million, 2018: CHF 25.7 million. Although 
the sum of outstanding contributions temporar ily 
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.  June 2018  
The WTO Secretariat agrees with the observation. 
Instead of an action plan, the WTO Secretariat will 
be proposing appropriate steps to be taken in a 
dedicated paper to be presented to the CBFA in 
June 2018.  
 
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.  
 
August 2020  
The WTO Secretariat accepts this 
recommendation. The plan will be prepa red by 
end of Q1 2021.  
 
February 2021  
Same as above   Ongoing  High  
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 travellers . June 2018  
The Secretariat agrees on the observation and 
will aim to implement it by the second quarter of 
2019 
 
February 2019  
End of project report for phase 1 of MobileXpense 
has been submitted to the Project Board. A 
prototype to extend the solution to non -WTO 
travel was delivered and the WTO is working on 
the amendment of the initial c ontract with 
MobileXpense. A project plan for phase 2 is under 
finalization with the objective of implementing 
MobileXpense for non -WTO staff at the end of 
2019.  
 
 
October 2019  To be 
closed  Medium   
  WT/BFA/W/540  
 
- 4 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
Development of MobileXpense phase two is in 
progress.  
 
August 2020  
Due to the o rganization of MC12 during the first 
quarter of 2020 and the lock down as from 
March  2020, the phase 2 prototype could not be 
tested by the project team. The testing is 
scheduled to resume in September 2020.  
 
February 2021  
MobileXpense informed the WTO tha t they will 
move to version 3.0 in September 2021 and that  
the new version will not support the 
developments specifically made for the WTO. As 
a result, the recommendation is to be considered 
overtaken by events . The Secretariat will launch 
a Request for Proposals  for a travel expense 
processing platform in 2021, including all 
categories of travellers . Ahead of this, the 
Secretariat is undertaking an exercise to further 
simplify and standardize travel procedures.   
55 Recruitment 
process for 
consultants  4.2 / 2017  There are two different processes in the two 
responsible divisions (HRD and AGSD) for 
consultants.  
 
I recommend standardizing recruitment processes 
for individual consultants according to the 
Procurement Guidelines.  June 2018  
The Secretariat agrees with the observation and 
has already started the revision process to issue 
a dedicated consultant guideline.  
 
February 2019  
HR has drafted a new guideline on individual 
consultants and AGSD has provi ded feedback to 
be incorporated in the finalized document.  
 
October 2019  
The drafted new guideline is still under review.  
 
February 2020  
Same as above  
 
August 2020  
Please refer to the Secretariat 's response in 
No. 88. 
February 2021  To be 
closed  High   
  WT/BFA/W/540  
 
- 5 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
In September 2020, the S ecretariat issued a new 
set of guidelines to address the several 
recommendations on the recruitment process for 
individual consultants.   
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 
imple ment 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 recommend ation. This will be 
done by March 2020.  
 
February 2020  
Same as above  
 
August 2020  
Please refer to the Secretariat 's response in 
recommendation No.80.  
 
February 2021  
The Secretariat is currently in contact with its 
insurance broker, Cigna, to assess the risks and 
additional insurance requirements.   Ongoing  Medium  
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 significant work in terms of 
process mapping and the development of Standard 
Operating Procedures (SOPs) as well as progress 
to avoid conflict of interest. However, the final 
adjustments and decisions are still pending.  
 
I recommend t hat WTO finalize the process 
description soon to ensure a smooth workflow with 
a transparent and clear allocation of tasks and 
responsibilities. Therefore, the Human Resources 
Division should immediately define and harmonize June 2019  
Gaps were identified by a management 
consultancy firm in early 2018. To address these, 
the Secretariat initiated a project to put a robust 
Human Resources Information System (HRIS) in 
place. Significant work was done, in collaboratio n 
with an external consultant, to map out current 
processes.  
In addition, there are "as -is" process workbooks 
for all HR processes indicating the tasks/steps, 
responsibilities and interactions required. 
Furthermore, the gaps identified by the external 
consultant resulted in recommendations to 
develop SOPs. This is in progress. The project is 
estimated to conclude in 2020.  
 
October 2019  Ongoing  High   
  WT/BFA/W/540  
 
- 6 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
the ownership of the processes and clarify the roles 
and responsibilities. On that basis, the Human 
Resources Division should coordinate the finalized 
process description internally with all process 
participants. The consensual version of process 
descriptions should then be authorized a ccordingly.  HRD has started developing SOPs, several have 
already been finalized and the project should 
conclude in 2020.  
 
February 2020  
Same as above  
 
August 2020  
The HRIS implementation began on 10 August, 
with a scheduled completion date of Q2/Q3 2022. 
There are two phases to the project: Phase 1 
includes HR Core, Absence, Compensation, 
Benefits, Recruitment, Reporting, whereas 
Phase  2 includes Learning and Development and 
Performance Management.  
The goal is for all HR processes to adapt as much 
as possible to the standard of what the HR system 
offers. Due to numerous changes to come in the 
configuration and de sign phase, Standard 
Operating Procedures will need to be continuously 
updated until the HR system is implemented.  
 
February 2021  
Ongoing, as detailed in the update as at 
August  2020.   
63 Personnel files  4.1 / 2018  I recommend that WTO shou ld implement clear 
instructions for the documentation of all staff 
related matters. These instructions should govern 
what kind of essential information shall be 
documented and in which form.  
 
Despite the high priority of this 
recommendation WTO is still wo rking on it. I 
recommend that WTO should push the HRIS 
project to finally get results after two years.  June 2019  
Agreed. The Secretariat will finalize the necessary 
documentation by 2020 as this is a component of 
the HRIS project.  
 
October 2019  
The Secretariat will finalize the necessary 
documentation by 2020 as this is a component of 
the HRIS project.  
 
February 2020  
Same as above  
 
August 2020  
Concrete decisions on this matter will be made 
during the implementation of the HR system, 
specifically the Design and Configuration stage, 
as it will be evident what types of documentation Ongoing  High   
  WT/BFA/W/540  
 
- 7 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
the Secretariat should have, as well as what the 
Secretariat can and will store within the worker 
profile in the HR system. From this point, the 
Secretariat would be able to decide to what extent 
it will be able to house all other types of essential 
documentation electronically – stored in 
SharePoint for example, or other secure location 
and eliminate the need to maintain 
physical/paper files for employees.  
 
February 2021  
Ongo ing, as detailed in the update as at 
August  2020.   
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.  
 
Despite the high priority of this 
recommendation WTO is still working on it. I 
recommend that WTO should push the HRIS 
project to finally get results after two years.  June 2019  
Agreed. The Secretariat will develop clear 
guidelines related to the documents that ought to 
be contained in the personnel files of staff 
members. This will a lso cover the assurance that 
the documents are maintained in the same 
format.  
 
October 2019  
HRD has started to develop clear guidelines and 
as such this recommendation is still in progress  
 
February 2020  
Same as above  
 
August 2020  
As per the Secretariat's Comments regarding 
recommendation 63, this will be a determination 
made during the course of the implementation. 
Other key aspects that will be covered during 
implementation are the access rights / security 
groups to be put in place. This will affect not o nly 
HR or IT access to documentation and information 
within the HR system but will also relate to the 
establishment of a framework around access 
rights for all employees for areas in scope within 
the system.  
February 2021  
Ongoing, as detailed in the update  as at 
August  2020.   Ongoing  High   
  WT/BFA/W/540  
 
- 8 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
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 inconsistencies. Furthermore, media 
interr uptions may lead to a lack of internal control 
within the Human Resources Division.  
 
I recommend that WTO should finalize 
straightaway the HR -process descriptions to 
identify future required functions (first step). The 
essential goal should be to consolida te 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 project  
 
February 2020  
Same as above  
 
August 2020  
The Secretariat refers to the comments for 
recommendation No. 62 above.  
 
February 2021  
The HRIS implementation began on 10 August, 
with a scheduled completion date of Q2/Q3 2022. 
There are two phases to the project: Phase 1 
includes HR Core, Absence, Compensation, 
Benefits, Recruitment, Reporting, Payroll whereas 
Phase 2 includes Learning and Development, 
Performance Management, and Advanced 
Compensation. All HR areas will now be linked 
within one system, the  needs of which was 
captured through the gap analysis/HR process 
overview exercise undertaken in 2018. With the 
launch of phase 1 of the new HR information 
system in September 2021, the Secretariat 
considers that this recommendation has been 
addressed.   To be 
closed  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 attain effective and efficient task fulfilment . In 
my opinion a future  proof HRMS system should 
basically contain all HR functions, including 
benefits administration, payroll, recruiting and 
training, as well as performance analysis and 
review.  
I recommend that WTO should generate a 
performance description to start the proc urement 
process based on successful defined requirements 
for an effective HRMS (second step).  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 project.  
 
 
February 2020  
Same as above  
 
August 2020  To be 
closed  High   
  WT/BFA/W/540  
 
- 9 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
The procurement process was finalized for the 
selection of the HRIS solution from a vendor. 
Furthermore, the Secretariat entered into a 
contract with an implementation service provider 
and began the implementation on 10 August, 
estimated to be completed in  Q2/Q3 2022. The 
Secretariat also refers to the response to 
recommendation No. 62.  
 
February 2021  
The Secretariat refers to the response to 
recommendation No. 65 and considers this 
recommendation has been addressed.   
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 his/her first fixed -term contract. In 2019 
WTO al ready reduced 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.  
 
February 2020  
The same as above.  
 
August 2020  
One salary scale has been removed, leaving 
3 frozen salary scales. The remaining frozen 
scales will be removed as the current salary scale 
overtakes frozen scales, resulting in only one 
salary scale being applicable to all staff. 
Depending on a number of factors, including 
inflation and exchange rate  movements, this 
process is likely to take some time. At this point 
in time, it is not possible to determine how quickly 
the remaining frozen scales will be overtaken and 
removed, only that they may be overtaken over 
time. The adjustment of the WTO salary scale is 
governed by the methodology set out in Annex B 
to the Staff Regulations.  
 
 
 
February 2021  
As explained above, the Secretariat considers the 
recommendation implemented and will discuss 
with the newly appointed auditors for next steps 
to have the is sue closed.   To be 
closed  Medium   
  WT/BFA/W/540  
 
- 10 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  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 se condary 
dependent 's allowance to a limited number of staff 
members 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.  
 
I still hold on my recommendation . Thereby, 
WTO should consider the economic status of the 
staff member as well as other dependency 
allowances paid.  June 2019  
The dependency allowance is detailed in the staff 
regulations and staff rules and is duly 
implement ed 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 cos t of 
implementation. Furthermore, Staff Members 
receiving any type of allowance are required to 
submit documentary evidence justifying their 
eligibility on an annual basis.  
 
October 2019  
Recommendation can be closed.  
 
August 2020  
The Secretariat reiterates  that it would be overly 
complex and cumbersome to introduce a 
differentiation based on economic situation of 
staff members, which is not necessarily 
correlated with their grade level, and, in 
particular, the social situation applicable in the 
home country  of the secondary dependent. The 
cost of administering the allowance, which is paid 
to fewer than 10% of staff members, would 
increase with the additional complexity 
recommended and would likely exceed any 
savings. The potential additional administrative 
costs could be assessed on the basis of a more 
detailed recommendation on the policy change 
and proposed criteria to be taken into account in 
differentiating the allowance.  
 
 
 
February 2021  
As explained above, the Secretariat considers the 
recommendation im plemented and will discuss 
with the newly appointed auditors the next steps 
to have the issue closed.   To be 
closed  Medium   
  WT/BFA/W/540  
 
- 11 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
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.  
 
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 
internshi ps 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.   June 2019  
The Secretariat will benchmark against other 
international organizations, with a view to 
assessing the recommendation in an objective 
manner.  
 
February 2020  
Same as above  
 
August 2020  
In 2020, the programme was suspended due to 
COVID -19. A closure of the programme as of 
2021 w ill be considered.  
 
February 2021  
The summer school programme will not be taking 
place in 2021.  To be 
closed  Low  
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 entitlements 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 pay-out for untaken 
annual leave for  separation.  
 
I recommend that WTO enhance the monitoring 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 context, 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 seve ral years. These include  statistics sent to 
directors, reminders to staff etc. Furthermore, 
any leave reimbursement is limited to a 
maximum of 60 days at the time of separation. 
The Secretariat will continue to emphasize the 
importance of annual leave mana gement to staff 
and directors.  
 
February 2020  
Same as above  
 
August 2020  
Management continues to closely monitor 
accumulated annual leave balances. Such 
balances are regularly communicated to 
supervisors who are requested to encourage staff 
to take annual leave periodically. The WTO has 
been continuously working on a reduction of the 
balance of Annual Leave and at the beginning of 
2019, the number of staff members whose annual 
leave balances exceed 60 days has been reduced 
from 101 staff members to 4 0 staff members.  
 To be 
closed  Medium   
  WT/BFA/W/540  
 
- 12 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
February 2021  
The DDG in charge of Administration has 
instructed all Division Directors to adhere to the 
relevant rules and policies relating to annual 
leave. Furthermore, HRD has informed staff  on a 
quarterly  basis, that the 60 -day limit  will be 
applied strictly, despite the exceptional 
circumstances surrounding the pandemic.   
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 the time of separation.  
 
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 recuperated from the annual leave 
allocation after their returning in 2019. In fiv e 
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 concerning the 
granting of advance annual leave and refers to a 
"long-standin g practice to grant up to 10 days 
exceptional circumstances ". In one case the excess 
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 acc umulating 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 aligning  the applicable reference period 
with the calendar year. Furthermore, WTO should 
implement appropriate payment restrictions for 
untaken annual leave.   June 2019  
The WTO agrees to work towards aligning the 
leave cycle with the calendar year and to assess 
measures of governing untaken leave.  
 
February 2020  
Same as above  
 
August 2020  
Aligning the reference period with a calendar year 
has implications for staff members from the 
Southern hemisphere who typically take leave 
from December to January. If, for example, 
excess leave was  to be reduced in December of a 
given year, such reduction would affect 
disproportionately such staff.  
 
February 2021  
Similar to the response to Recommendation 
no. 71, the DDG in charge of Administration has 
instructed all Division Directors to adhere to the 
relevant rules and policies relating to annual 
leave. Furthermore, HRD has informed staff on a 
quarterly  basis, that the 60-day limit will be 
applied strictly,  despit e the exceptional 
circumstances surrounding the pandemic . To be 
closed  Medium   
  WT/BFA/W/540  
 
- 13 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
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. 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 and 
adjust the rules and guidelines for HL becau se of 
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 context WTO 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 excess payments 
and misconduct.  
 
Despite the high priority of this 
recommendation WTO is still working on it. I 
recommend that WTO should prioritize the 
implementing of a new Home Leave Policy to 
finally get results after five years.  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 Le ave Policy has been 
elaborated by HRD and received input from the 
AGSD/Travel for its feasibility. The document is 
being finalized.  
 
February 2020  
Same as above  
 
August 2020  
Two policies have been prepared in this regard. 
These are:1. Home Leave and Family Visit Policy, 
which has been approved by the Directo r-
General.2. The Methodology for the Calculation of 
Benefits Pertaining to Home Leave, Family Visit, 
Recruitment and Education Grant. This proposed 
revised policy will be submitted to the JAC for 
review by 30 September 2020. The JAC will 
subsequently make recommendations on a 
revised text to the Director -General.  
 
February 2021  
The Methodology for the calculation of the 
benefits pertaining to Home Leave, Family Visit, 
Recruitment and Education Grant  was updated 
based on the recommendations and it was 
incorporated into an updated Travel Policy that 
will be submitted in February 2021 for the Joint 
Advisory Committee (JAC)'s review. The JAC will 
subsequently make recommendations on a 
revised text to the  Director General. The delay in 
the submission to the JAC is due to a more 
extensive exercise than anticipated being 
undertaken with the updated Travel Policy 
consolidating and revisiting all existing travel 
policies.   To be 
closed  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 Same c omments by WTO and status of progress 
as in recommendation No. 73.  To be 
closed  High   
  WT/BFA/W/540  
 
- 14 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
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 o f 
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 untaken annual leave within a period of 
two years.   
February 2021  
An updated Home Leave (HL) and Family Visit 
Policy which became effective on 1 January 2021, 
reinforces that staff members are required to stay 
a minimum of two calendar weeks in the HL 
country. It further adds that if for professional or 
family related reasons, the Staff member and 
eligible family members are unable to fulfil this 
requirement, HRD may authorize a shorter length 
of stay, which in no case shall be less than seven 
calendar days in the HL country, excluding travel 
time. The period of HL leave is monitored by HRD 
and in cases where the staff spends less than two 
calendar weeks, pre -authorization from HRD 
would be needed.  
  
76 Admin istrative 
measures  3.2 / 2019  I recommend that WTO revise its Financial 
Regulations and may implement additional 
adequate and effective administrative measures.  August 2020  
The administrative measures are subject to the 
Members' review.  
 
February 2021  
Members may choose to review the 
Administrative Measures or to let them remain 
unchanged.   To be 
closed  Medium  
77 Cash and cash 
equivalents  3.3.1 /2019  I expect that WTO fully complies with its Payment 
Policy and ensure that the new DG will be 
authorized  only by joint signatures 2 by 2 for all 
WTO bank accounts.  August 2020  
The Secretariat agrees to ensure a dual signatory 
once the new DG is selected.  
 
February 2021  
As the new Director -General will be assuming 
duty on 1 March, this recommendation will be 
implemented.   Ongoing  High  
78 Other receivables  3.3.1 / 2019  I recommend that WTO formally reclaims for a full 
reimbursement of amounts due from the 
Government of Argentina for the 11th Ministerial 
Conference in 2017 – immediately.  August 2020  
The Secretariat will continue following up with the 
Government of Argentina, seeking settlement of 
this amount owed.  
 
February 2021  
As recommended, the Secretariat renewed the 
recovery efforts and  sent a new request for full 
reimbursement of the amount due from the 
Government of Argentina in a letter from DDG Ongoing  High   
  WT/BFA/W/540  
 
- 15 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
Karl Brauner dated 8 October 2020. The 
reimbursement was requested to be made by 
31 December 2020.   
79 Accruals and 
provision s 3.3.1 / 2019  I recommend that WTO apply actuarial principles 
in future to determine its provisions considering 
the average age and health of the employees. In 
this context WTO should consider relevant 
methods for discounting and indexing in its 
calculations.  August 20 20 
The Secretariat agrees to revise the calculation of 
the disability case provision aligned with actuarial 
principles.  
 
February 2021  
Deliberations on and analysis of important 
elements pertaining to this issue are ongoing.  Ongoing  Medium  
80 Accruals an d 
provisions  3.3.1 / 2019  I recommend that WTO regularly revise its 
potential risks related to disability cases in order to 
implement possible and effective mitigation 
measures to minimize such risks. In this context, 
WTO should consider possible improveme nts in 
insurance.  August 2020  
The Secretariat agrees to explore this 
recommendation.  
 
February 2021  
Refer to recommendation 60 above.   Ongoing  Medium  
81 Accruals and 
provisions  3.3.1 / 2019  I recommend that WTO optimize the presentation 
of the provisions by a separate note. In this note 
WTO should explain the main risks grouped and 
show the significant details clear and transparent.  August 2020  
The Secretariat agrees to disclose Provisions i n a 
separate note aligned with IPSAS 19 starting with 
the 2020 Financial Performance Report.  
 
February 2021  
A separate note on provisions has been included 
in the 2020 Financial Performance Report.   To be 
closed  Medium  
82 Reserves  3.3.1 / 2019  I recommend that WTO suggest to the CBFA the 
draw-down of its reserves in the Doha 
Development Agenda Global Trust Fund and to 
reallocate the fund internally.  August 2020  
The Secretariat will review the merits for the 
reserve and provide an update to the Aud itors at 
a later stage.  
February 2021  
The Doha Development Agenda Global Trust Fund 
(DDAGTF) is the flagship WTO trust fund 
providing support to a wide range of trade -related 
technical assistance (TA) activities. The reserve 
was set up in 2001 as a measure  to mitigate the 
risk of unfunded payment obligations in future 
years and as a mechanism to guarantee the 
continuity of the TA activities if a short -term 
liquidity gap had to be bridged in the trust fund 
as a result of the irregular and sometimes 
unpredict able timing for the receipt of donors' 
pledged contributions.  To be 
closed  Low   
  WT/BFA/W/540  
 
- 16 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
The significant decrease in the number of 
voluntary contributors which are currently at cc. 
40% of the 2002 number of contributors, as well 
as the extreme uncertainty linked to the current 
pande mic, highlight the justification for retaining 
a reserve.  
In addition, the Secretariat's understanding of 
risks associated with trust fund operations has 
evolved since 2001 in a way that suggests that 
although the reserve has been infrequently used, 
the likelihood of exceptional payment obligations 
has also evolved. Based on the reasons above, 
the Secretariat believes it appropriate to maintain 
the reserve.   
83 Separation  4.1 / 2019  I recommend that WTO notify decisions due to 
separations in time to avoid additional payments 
for indemnities.  August 2020  
The Secretariat will assess this.  
 
February 2021  
Upon reassessment , the Secretariat concluded 
that it followed the relevant Staff Rules on this 
matter and will continue to ensure that there are 
no delays in notifying separation decisions.   To be 
closed  Medium  
84 Early retirement  4.1 / 2019  I recommend that WTO may enter into a separate 
agreement with WTOPP due to compensation 
payments for early retirement. In this agreeme nt 
WTO and WTOPP should determine an acceptable 
justification and a clear calculation as well as an 
applicable procedure including timelines and 
documentation.  August 2020  
The actuarial assumptions approved by the 
WTOPP Board already include estimates of " Early 
retirements".  Actuarial calculations are based on 
a number of actuarial assumptions. These 
actuarial assumptions are periodically reviewed 
by the WTOPP Board and adjusted in light of the 
actual experience. The Secretariat and the 
WTOPP agrees to expl ore potential conditions for 
a separate agreement.  
 
February 2021  
The Secretariat is drafting proposed guidance on 
how and when compensation payments for early 
retirement will be activated for subsequent 
agreement with the WTOPP.  The guidelines will be 
finalized before 30 April 2021.   Ongoing  Medium  
85 Early retirement  4.1 / 2019  I recommend that HRD ensures that the 
Secretariat's Management has all relevant 
information due to an optional separation package 
before decisions will be taken. This includes Augus t 2020  
The WTO agrees to provide relevant information 
to management before decisions are taken on 
optional separation packages.  To be 
closed  Medium   
  WT/BFA/W/540  
 
- 17 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
individual compensation payments by WTO to 
WTOPP due to early retirement.   
February 2021  
The Secretariat always provide relevant 
information to management before decisions are 
taken on optional separati on packages. Delays in 
the approval of the 2020 budget led to an 
exceptional delay in the provision of actuarial 
information on the impact of such separations on 
the Pension Fund. This was an exceptional 
situation and not the norm. The Secretariat 
follows the relevant Staff Rules on this matter and 
will ensure that there are no delays in the 
provision of information.   
86 Recruitment 
process for 
individual 
consultants  4.1 / 2019  There are two different processes in the two 
responsible divisions (HRD and AGSD) for 
consultants.  
 
Since 2018, I have recommended standardizing 
recruitment processes for individual consultants 
according to the Procurement Guidelines.  
 
I strongly recommend that WTO finish and 
implement the new guidelines for the recruitment 
of individual consultants as soon as possible to 
ensure similar regulations and compliance for all 
services provided from consultants as well as to 
determine an appropriate segregation of duties and 
delegated authorities in the process.   August 2020  
The Secretariat accepts this recom mendation and 
will finalize the guidelines.  
 
February 2021  
In September 2020, t he Secretariat issued a new 
set of guidelines to address several 
recommendations on the recruitment process for 
individual consultants.  To be 
closed  High  
87 Recruitment 
process for 
individual 
consultants  4.1 / 2019  I recommend that WTO terminate the contract 
referred to in the detailed Audit Report at the end 
of the contracted period without any extensions. 
The exceeded payments for 2018 and 2019 should 
be off set if not correctly justified and approved.  August 2020  
It should be noted that while the Staff Rules 
prohibit the recruitment of relatives of staff 
members, spouses are excluded from this 
limitation.  
 
Consultants are not staff members and are not 
subje ct to the WTO staff rules, but it would be 
erroneous to imply that it is contrary to the 
recruitment policy to hire spouses of staff 
members (the staff rules state that spouses shall 
be given equal opportunity in recruitment 
provided that they are fully qu alified for the post 
under consideration).   
 To be 
closed  High   
  WT/BFA/W/540  
 
- 18 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
The basis of recommending that any payments 
for 2018 and 2019 to be offset against current 
payments in 2020 is not articulated. There is no 
suggestion or proof that any days worked beyond 
the time were erroneous .  
 
As a complement to the response above, the 
Secretariat reiterates that while the Staff Rules 
prohibit the recruitment of relatives of staff 
members, spouses are excluded from this 
limitation. Moreover, consultants are not staff 
members and are not subj ect to the WTO staff 
rules and it would be erroneous to imply that it is 
contrary to the recruitment policy to hire spouses 
of staff members (the staff rules state that 
spouses shall be given equal opportunity in 
recruitment provided that they are fully qu alified 
for the post under consideration) . 
 
February 2021  
In addition to the comments above, the contract 
referred to ended on 31 December 2020 and was 
not renewed .   
88 Recruitment 
process for 
individual 
consultants  4.1 / 2019  I recommend that WTO ensure a competitive and 
transparent process governed by HRD in all cases 
where consultants are close relatives of WTO staff 
members. Final decisions should only be taken by 
the DG or the DDG responsible for staff related 
matters.   August 2020  
Consultants are normally hired for short periods 
of time and whenever the Organization seeks a 
technical skill not available among its staff. Whilst 
the Secretariat does not support the introduction 
of heavy selection processes as this could impact 
negatively on the agility of the Organization to 
respond to specific needs, it does agree with the 
need for clearance at a senior level, whenever 
consultants bear any family relation with any staff 
member.  
 
February 2021  
In September 2020 , the Secre tariat issued a new 
set of guidelines to address the several 
recommendations on the recruitment process for 
individual consultants.   To be 
closed  High  
89 Recruitment 
process for 4.1 / 2019  I recommend that WTO ensure that only 
companies can be selected and contracted by August 2020  
The Secretariat agrees with this 
recommendation.  To be 
closed  High   
  WT/BFA/W/540  
 
- 19 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
individual 
consultants  following a harmonized procurement process as 
well as the applicable rules and regulations.   
February 2021  
In Se ptember 2020, t he Secretariat issued a new 
set of guidelines to address several 
recommendations on the recruitment process for 
individual consultants.   
90 Recruitment 
process for 
individual 
consultants  4.1 / 2019  I recommend that WTO a gree frame contracts for 
recurring services over a longer period if 
applicable.  August 2020  
The Secretariat agrees with this 
recommendation.  
 
February 2021  
In September 2020, t he Secretariat issued a new 
set of guidelines to address several 
recommendations on the recruitment process for 
individual consultants.   To be 
closed  Medium  
91 Trust funds  4.2 / 2019  I recommend that WTO critically review its trust 
fund landscape. As a result, WTO should develop a 
strategy to close trust funds witho ut any activities 
in 2019 and to merge trust funds with similar 
purposes and donor structure. In this context, WTO 
may harmonize main processes to better manage 
the trust funds like controlling, funding, and 
procurement in a separate unit to ensure 
consist ency and transparency as well as full 
compliance with WTO Rules and Regulations.   August 2020  
The Secretariat agrees to critically review the 
trust fund landscape and develop a strategy to 
limit the proliferation of small funds as well as to 
assess closing trust funds which had no activity in 
2019.  
 
February 2021  
The Secretariat is actively engaging its Members 
in a review of the trust fund landscape to ensure 
that its administrative practices align with 
Member s' expectations . This includes efforts t o 
discourage the proliferation of small single 
purpose trust funds. The Secretariat agrees to 
closely monitor trust fund activity and close or 
consolidate low activity funds on an annual basis.  
We note that due to the global Covid -19 
pandemic, 2020 was an  unusual year for trust 
fund activities and as a result some trust funds 
anticipated to finish their mandates in 2020 will 
be extended into 2021.   Ongoing  High  
92 Trust funds  4.2 / 2019  I recommend that WTO implement an effective 
monitoring of all multiyear voluntary contributions 
to ensure a correct recording due to IPSAS 23, 
starting in 2020.   August 2020  
The Secretariat agrees to monitor multi -year 
voluntary contribution agreements to  ensure 
alignment with IPSAS 23.  
 
February 2021  To be 
closed  Medium   
  WT/BFA/W/540  
 
- 20 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
A process was implemented to monitor the 
recognition of multiyear voluntary contributions 
according to IPSAS 23. The process is effective 
for material contracts entered into after 
1 January  2021.   
93 Trust funds  4.2 / 2019  I recommend that WTO ensure that all 
procurement activities with higher amounts are 
subject to a harmonized and compliant 
procurement process to ensure transparent and 
standardized procedures and correct 
documentation  as well as to ensure an appropriate 
value for money.  August 2020  
The Secretariat agrees to review the thresholds 
for procurement relating to trust funds.  
 
February 2021  
A robust policy to be developed in collaboration 
with multiple divisions with the Secretariat by 
31 October 2021.   Ongoing  Medium  
94 Trust funds  4.2 / 2019  I recommend that WTO continue to train all staff 
responsible for procurement in other divisions to 
ensure accurate proceedings and economic 
thinking as well as the tax -exempt statu s of WTO.   August 2020  
The Secretariat will continue to provide training 
to all relevant staff across the organization.  
 
February 2021  
The WTO Procurement Section will continue to 
train colleagues from other divisions , who  deal 
with trust fund activities . The training will also 
ensure that exemptions from VAT are consistently 
requested.   To be 
closed  Medium  
95 Trust funds  4.2 / 2019  I recommend that WTO monitor requests for 
exemption from sales taxes for services in 2019 
and 2020 and to check whether it is worth 
reclaiming taxes paid in 2019 and 2020.  August 2020  
The WTO Procurement Section will assist 
colleagues from other divisions dealing with trust 
fund activities to ensure that exemptions are 
consistently sought for and will document cases  
where this is not possible.  
 
Any attempt to reclaim Sales Taxes paid in 2019, 
from individual companies which at this point 
have already transmitted such sales tax to their 
respective Governments, would be close to 
impossible and unduly costly given the a mount 
involved.  
 
February 2021  
The Secretariat took the following actions to 
address the recommendation:  
 
1) Sales tax exemption letter - A letter that 
documents the basis for WTO's sales tax To be 
closed  Medium   
  WT/BFA/W/540  
 
- 21 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
exemption has been prepared and will be used as 
a template for all concerned Divisions when 
engaging with vendors to request the sales tax 
exemption.  
2) Vendor registration statement – The vendor 
registration statement has been updated to 
include vendors' approval of WTO's General 
Terms and Conditions , amongst which the sales 
tax exemption is included.  
3) Efforts to r eclaim taxes for 2019 and 2020 – 
Requests for sales tax reimbursements were sent 
to the top 5 suppliers for trust fund activities held 
outside of Switzerland in 2019 and 2020. We note 
that for activities held in Switzerland, the services 
were sales tax exempt. Requests to providers 
outside Switzerland  to reimburse of the sales tax 
for prior years were not accepted. The reasons 
provided were: ( a) specific  procedures need ed to 
have been followed prior to service being 
provided ; (b) no response has been received and 
further follow up will be unduly costly and 
inefficient. As an example, the hotels in Mauritius 
and Kazakhstan were closed given the pandemic.   
96 Trust funds  4.2 / 2019 I recommend that WTO review all temporary 
contracts with staff on L -positions and implement 
an effective monitoring regarding temporary 
contracts to ensure that these contracts do not 
automatically switch into permanent contracts 
because the deadline of four years has expired for 
temporary contracts.  August 2020  
The WTO agrees to review all temporary contracts 
with staff on L -posts in a view to implementing 
this recommendation where feasible  
 
February 2021  
All L-position contracts with less than 5 year s of 
service have been reviewed and where possible, 
the contracts will be discontinued before 
converting to open -ended contracts subject to 
availability of funds. Where appropriate, 
consistent with the nature of the work 
responsibilities, and when regular positions 
become vacant existing long -term L -positions are 
being given the opportunity to convert to regular 
budget contracts. New L -position contracts now 
reflect the time -limited nature of these positions.   To be 
closed  High  
97 Trust funds  4.2 / 2019  I recommend that WTO develop a suitable strategy 
for staff on L -positions to enable a transfer to 
permanent contracts or to terminate contracts August 2020  
The WTO agrees to develop a strategy for existing 
long-serving staff on L -posts and to ensure the To be 
closed  High   
  WT/BFA/W/540  
 
- 22 - No Issue  Reference: 
Chapter, 
Year Recommendation  Secretariat response  Status  Priority  
based on structural requirements. New contracts 
should be generally terminated before the four 
years period expi res.   limitation of future L -Post contracts to a 
maximum possible tenure of 4 years.  
 
February 2021  
Same response as above - Rec 96.   
 
 
__________