RESTRICTED  
  
WT/BFA/158  
 
18 November  2016 
(16-6372)  
Committee on Budget, Finance and Administration    
 
  
REPORT OF THE MEETIN G HELD ON 1 NOVEMBER  2016  
The Committee on Budget, Finance and Administration (CBFA) met on 1 November  2016 under the 
Chairmanship of Ambassador Inga Ernstsone (Latvia). The Terms of Reference and composition of 
the Committee are set o ut in document WT/L/44/REV.1.  The agenda contained in document 
WTO/AIR/BFA/ 11 was adopted.  
1 INTERNATIONAL TRADE CENTRE UNCTAD/WTO – ITC MID -TERM REVIEW BIENNIUM  
2016 -2017 – JOB/BFA/11  
1.1 The Director of the Division of Programme Support  of ITC presented t he ITC Mid-Term Budget 
Review to the Committee. He indicated that the 2016 performance against budget was a bit lower 
compared to 2015. The y ear 2016 was especially a n intensive year because of the high number of 
conferences held and the launch of a flagsh ip publication.  
1.2 He indicated that the p roject ed 2016 expenditure for ITC was 37.663 MCHF , representing 
99.8% of the budget.  The contribution from each parent O rganization amounted to  18.775 MCHF .  
1.3 The Director pointed out that ITC ha d decided not t o revise the 2017 budget  that was 
approved  by the General Council in 2015  as there were no unexpected or unavoidable changes in 
projected activities .  
1.4 The Director recalled that the migration from the former ERP S ystem  to UMOJA  started in early 
2015. In this process ITC had encountered several  challenges, but also got significant benefits.  
The Director  noted ITC implemented International Public Sector Accounting Standard (IPSAS) 
reporting in 2015 and that the Board of Auditors had expressed an unqualifi ed audit opinion  on the 
2015 Annual Financial Statements . 
1.5 The Director informed the C ommittee that the 2018 -2019 budget preparation process had 
already begun  and would be subject to discussion s within the C BFA during the course  of next year.  
1.6 The C ommittee took note of the report.  
2 REVISION OF THE FINA NCIAL RULES OF THE W ORLD TRADE ORGANIZAT ION – 
WT/BFA/W/ 396/REV.11 
2.1 The Secr etariat  recalled that the latest amended version of the WTO R evised Financial R ules 
and a table of questions and answers had been sent to M embers ahead of the meeting .  The 
Secretariat stated that all previously submitted changes that did not trigger additional questions 
had been accepted and only subsequent changes were tracked.  
2.2 The Secretariat presented a slide showing  the hierarchy of governing documents within the 
Organization in order to give a clear overview  of the relative placement of the Financial 
Regulations, Financial Rules, Administrative Memoranda and associated policies .  
2.3 There were no questions or comment s. 
2.4 In conclusion, t he Chairperson stated that the Secretaria t would finalize the document to 
incorporate the latest  changes. The Committee agreed that the finalized text be submitted to the 
General Council for approval. The Chairperson  drew the Committ ee's attention to the fact that the 
last meeting of the General Council would take place in December,  and expressed the desire  to 
                                                
1 As annexed to this document.  WT/BFA/158  
 
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  have the document approved during that meeting in order for the R evised WTO Financial Rules to 
take effect on  1 January 2017.  
2.5 The Committee made the following recommendation  to the General Council:  
The Committee  recommends that the General Council approve the revised WTO Financial 
Rules contained in the document WT/BFA/W/396/Rev.1. The Secretariat will officially 
reflect the  amendments that will be issued as document WT/L/157/Rev.2 . 
3 WTO MID -TERM REVIEW: BIENNIU M 2016 -1017  – WT/BFA/W/402  
3.1 The Secretariat presented the Mid -Term Review  for the biennium 2016 -2017, noting that the 
Director General did not propose a revision o f the 2017  budget . 
3.2 The Secretariat indicated that for the 7th consecutive year, the consolidated budget of the 
WTO remained unchanged (zero nominal growth) . 
3.3 The forecast expenditure for the year ending 31st December  2016 was cited as  
CHF 192.7  million, representing 98% of the 2016 budget amount of CHF  197.2  million. The 
anticipated budgetary savings approximate CHF  4.5 million . Of this amount, 99% was indicated as 
being from savings on Staffing Resources whilst 1% was from Other Resources and Opera ting 
Funds & ITC, collectively.  
3.4 The Secretariat noted that the budgetary surplus was an interim step to arriving at the 
forecast financial result, which is determined by making adjustments in accor dance with IPSAS 
requirements. The main elements to be  factored in are service costs for long term employee 
benefits, specifically the After Service Health Insurance (ASHI) and pension benefits. The actuarial 
estimation for these for the year ending 31st December  2016 is CHF  25 million, resulting in a 
forecas t financial deficit of approximately CHF  20.5 million.  
3.5 The Secretariat highlighted the increased activity in the disputes settlement area, which 
resulted in migration of  more than 2 3 posts from other Divisions to the legal Divisions.  
3.6 The Secretaria t also presented the 201 6 Budget by Output Chapter . The specific chapters 
are: Facilitating Negotiations ; Administering Agreed WTO Rules ; Monitoring Trade Policies ; Settling 
Disputes ; Capacity Building ; Assisting Accessions ; Conducting Research ; and Outreach. Several 
Members expressed their appreciation of this presentation and noted that they found it interesting 
and relevant.  
3.7 The Secretariat  indicated that for the 2017 Budget, CHF1 million was reallocated from 
Assisting Accessions to Conducting Resear ch on account of the planned responses to the 
unprecedented global focus on trade issues . 
3.8 Several  Member s thanked the Secretariat  for its report . A Member sought clarification of an 
excerpt from the Mid -term Review which stated that Zero Nominal Growth  is understandable as an 
interim measure but is not sustainable beyond the current year. The Secretariat r esponded that 
over the years cost -saving measures had been put in place and that now the cuts were "close to 
the bone"  thus diminishing the scope for further paring back of expenditures.   
3.9 In response to s everal Members ' voicing concern over this point, another  member noted that 
the Committee was not required to endorse the complete Mid -term Review but rather to make a 
recommendation on the 2017 Memb er contributions.  
3.10 Another Member expressed the view that a careful consideration should be made in case  of 
adding new posts since these would increase the  ASHI liability. She emphasized that any 
discussion on revising the budget upwards cannot be made  in isolation from the consideration of 
the ASHI Strategy since this would have material financial implications.   
3.11 In its response, the Secretariat stated that the question of moving away from ZNG 
budgeting was mutually exclusive from the ASHI topic, t hough both had financial implications and 
were important.  WT/BFA/158  
 
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  3.12 The same Member  wanted  to know why there was inconsistency in the number of staff 
allocated to some Output Chapters relative to the attribution of the 2016 budget to the given 
Output Chapters.  The Secretariat explained that staff from several Divisions contributed to any 
given Output Chapter, case in point being that staff from Legal Divisions worked on trade policy 
reviews .  
3.13 Another Member sought clarification regarding  the 22  positions and the three  additional 
posts of the Appellate Body indicated in Table 13. The Secretariat responded that by t he end of the 
year, the three additional posts would be transferred to the Appellate Body  Secretariat , leading to 
a total of 25 additional posts.   
3.14 Referring to Figure 3, a Member enquired what "private meetings" were. The Secretariat 
stated it would look into this and  communicate the answer by email.  
3.15 The Co mmittee took note of the report and endorsed the following recommendation.  
The Commit tee recommends that the General Council approve the Members' scale of 
Contributions for 2017 as presented in pages 16 to 19 of the Document WT/BFA/W/402.  
4 PROGRESS REPORT ON T HE WORKING GROUP ON ASHI STRATEGY DEVELO PMENT  
4.1 The Chairman of the Monitorin g Group (MG) stated that the Secretariat presented a first 
draft of the Strategy document to Members of the MG on 27  October. During its meeting on 28 
November, the MG welcomed the document declaring that it was an encouraging step towards 
concluding the c urrent process. They broadly agreed that the document and the areas covered 
were in accordance with expectations and going in the right direction .  
4.2 He stated that Members sought clarificati on and further details in terms of data, key 
performance indica tors and targets. Members also felt that the document would benefit from a 
rebalancing in certain areas  as the proposals on achieving efficien cies should be set out further, 
and the envisaged monitoring of the strategy’s implementation could be described  in more detail .  
4.3 The Chair of the MG concluded that Members of the  MG would have to further  study  the 
Strategy document and form opinions. Therefore, they only provide d preliminary observations  
during the MG meeting.  
4.4 The Chair informed the Committee  that he will convene a further meeting of the MG mid-
November .  
5 EXTRA -BUDGETARY FUNDS REPO RT – 3RD QUARTER 2016  – WT/BFA/W/405  
5.1 The Secretariat presented the financial situation of the Doha Development Agenda Global 
Trust Fund (DDAGTF) and other trus t funds  for the third quarter .  
5.2 It was indicated that the contributions to the DDAGTF as at the end of the third quarter 
amounted to CHF3.3 million . The Secretariat drew the Committee's attention to the fact that the 
contributions received and pledges were lower by 20% compared to the same period in 2015. The 
Presenter of the agenda item then pointed out  that the fund remained in a solid financial situation, 
due to the carry forward mechanism  and balances brought forward from previous years . The 
expendi tures and commitments for 2016 approximated  CHF8.3 million. The O fficial remark ed that 
the current expenditures were much higher than the current contributions received, also indicating 
that this situation would lead to a consumption of the positive balanc e of the fund and would 
expose future activities and about 40 staff, whose salaries are covered by the fund , to risk.  
5.3 The Secretariat emphasized that the Standards and Trade Development Facility (STDF) 
needed additional contributions to be able to con tinue approving and contracting new projects.   
5.4 The Secretariat mentioned that the other T rust Funds are in a stable position. The Official 
concluded by underlining that the draft evaluation report on Technical Assistance included positive 
preliminary v iews and would be finalized in the last quarter of the year.  WT/BFA/158  
 
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  5.5 The Committee took note of the report.  
6 UPDATE ON THE ORGANI ZATIONAL REVIEW OF T HE WTO SECRETARIAT  
6.1 Deputy Director -General (DDG) Brauner (DDG) updated the Committee on the progress 
made regarding the Organizational Review.  He then provided information about the recruitment 
process for the three v acant posts at Director level. DDG Brauner indicated that 416 applications 
had been  received  for all three  posts .  
6.2 Subsequently, DDG Brauner  gave an update on  the Young P rofessional s Program. He 
recalled that the  Programme was launched to select nationalities that were not represented within 
the Organization. He stated  that more than 500 candidates submitted their application. The initial 
intake was to have been 5 people. At the time of selection, it was decided to increase th is to 13.  
6.3 DDG Brauner  updated  the Committee on the various working groups in the Organization. He 
indicated that the first phase which comprised of four working groups  had been completed. He 
noted that topics related to performance are currently under discussion  by three sub -groups 
comprising of members of staff, n oting that Members had asked for a link to be made between 
remuneration and rewards.  He pointed out there i s a sense of fairness amongst staff with the 
keenness for underperformance to be addressed.  
6.4 DDG Brauner  recalled  that one of the key issues  during the process of the Strategic R eview , 
from the perspective of  staff, was mobility.  
6.5 Consequently, t he Secretariat had launched a n innovative  mobility exercise  in October 2016 . 
Through  that exercise staff member s had to indicate the D ivision  they would like  to move to and 
efforts would  be made to  laterally move Applicants . 30 staff members from grade 4 to grade 10 
enrolled in the mobility  list. 
6.6 Member s thanked DDG Brauner  for his report and appreciated the  progress made , especially 
in relation  to the Young Professional s Program. One Member expressed the view that there was  
fairness during the recruitmen t process. He also commended the increase in the number of 
positions for the YPP from 5 to 13, saying that this bodes well for  enhancement in diversity  and 
merit.  
6.7 Another Member inquired what the situation would be when an employee want ed to move  
but d id not express th e interest of moving within the specified period of the mobility exercise.  DDG 
Brauner  indicated that the described exercise was created in order to encourage employees for 
mobility  and to have a pool of candidates to facilitate swapping . However, it did not imply  that a 
staff member  was not al lowed to express interest  at a later stage . Such a request would still be 
considered by the Human Resources  Division . 
6.8 The Committee took note of the report.   
7 OTHER BUSINESS  
7.1 The Chairperson  once again called on Members to invite  their capital s to contribute to the 
LDCs Ministerial Trust Fund , in order to  replenish it . 
7.2 The Chairperson closed the meeting and informed the Committee that the next meeting will 
take place on 29 November 2016.  
 
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 WT/BFA/158  
 
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  ANNEX  
REVISION OF THE FINA NCIAL RULES  
OF THE WORLD TRADE O RGANIZATION  
 
1  AUTHORITY AND APPLIC ABILITY  
1.1  Reference  
These Rules are established pursuant to Regulation 3 of the Financial Regulations of the World Trade 
Organization (WTO).  
 
1.2  Appli cability  
These Rules shall apply to the regular budget of the WTO and to all other funds placed at the 
disposal of the WTO, except in so far as the applicability of special regulations and rules for such 
other funds is recognised by the Deputy Director -General in charge of Finance.  
 
1.3  Responsibility for implementation  
The Deputy Director -General in charge of Finance is responsible to the Director -General for the 
application and implementation of these Rules. He or she may delegate any specific authority veste d 
in him or her pursuant to these Rules, in the appropriate written format, to other officials of the 
WTO.  
 
1.4  Additional instructions to be issued by the Deputy Director -General in charge of 
Finance  
Within the framework of the Financial Regulations and these  Rules, the Deputy Director -General in 
charge of Finance may issue such additional instructions or establish such procedures as shall be 
necessary to ensure effective internal financial control, sound administration of funds, and exercise 
of economy. No ch anges in such instructions or procedures shall be made without the approval of the 
Deputy Director -General in charge of Finance.  
 
1.5  Responsibilities of the Director of Administration and General Services Division  
The Director of the Administration and Genera l Services Division is responsible to the Deputy 
Director -General in charge of Finance for the performance and/or supervision of all budgetary, 
financial and accounting operations.  
 
1.6  Responsibilities of the Office of Internal Oversight (OIO)  
The OIO assists  the Director -General in fulfilling his or her internal oversight responsibilities in 
respect of management, staff and resources of the WTO by conducting audits, evaluations, 
inspections and investigations and reporting to the Director -General, or in case the Director -General, 
a Deputy Director -General or a member of the Office of the Director -General is directly concerned, to 
the Chairs of the General Council and of the CBFA.  
 
1.7  Approaches outside the WTO  
No approach shall be made either outside the WTO or within the WTO with a view to obtaining funds 
or resources, or exemptions from existing financial regulations, rules or provisions of the WTO, 
except with the prior written authorization of the Director -General, the Deputy Director -General in 
charge of Fin ance or the Director of Administration and General Services Division.  
 WT/BFA/158  
 
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  1.8  Responsibility for funds from external sources  
No official may accept responsibility for the handling or management of funds belonging to a 
government, or to any other body of an offici al or quasi -official nature with which he or she is 
associated by reason of his or her status as an WTO official, unless he has been specifically 
authorized in advance to do so on the basis of a decision by the Director -General.  
 
2  PREPARATION OF THE B UDGET PROPOSALS  
2.1  Form of the budget proposals  
The budget proposals of the WTO shall be drawn up as prescribed in Regulations 5 to 9 of the 
Financial Regulations. Presentation of the budget proposals shall be both in an overall form and, to 
the extent possible, br oken down according to budget sections, i.e. in a functional format.  
 
2.2  Responsibility for the preparation of the budget proposals  
The Deputy Director -General in charge of Finance, with the assistance of the Director of 
Administration and General Services Di vision, shall be responsible to the Director -General for the 
provision of advice on budget and financial policy and for the preparation of the estimates of income 
and expenditure included in the budget proposals and budget documents for submission to the 
Committee on Budget, Finance and Administration and to the General Council. For this purpose he or 
she shall assure the timely presentation of sound and realistic budget proposals conforming to the 
Financial Regulations.  
 
2.3  Furnishing of cost estimates  
The A dministration and General Services Division shall be responsible for the preparation of all cost 
estimates that may be required in connection with the activities of the WTO including estimates of 
the cost of all projects, trust funds, meetings, staff salar ies and missions.  No official shall issue cost 
estimates for use outside the WTO without prior written clearance of the estimates by the Director of 
the Administration and General Services Division.  
 
3  COLLECTION OF CONTRI BUTIONS AND OTHER IN COME  
3.1  Responsibi lity for collection of contributions  
The Director of the Administration and General Services Division shall be responsible to the Deputy 
Director -General in charge of Finance for collecting and accounting for contributions due from 
Members and Observers, a s prescribed in Regulations 12 to 17 of the Financial Regulations.  
 
3.2  Accounting for receipts  
(a) All receipts shall be brought to account with the shortest delay possible.  Assessed 
contributions received by the WTO shall be accounted as of the date of rece ipt in the 
WTO bank account.  
 
(b) Voluntary contributions, gifts or donations, which directly or indirectly involve additional 
financial liability for the WTO, shall be kept in a suspense account until their acceptance 
by the Committee on Budget, Finance a nd Administration has been authorized in 
accordance with Regulation 19 of the Financial Regulations and the additional guidelines 
in Annex C.  
 
3.3  Miscellaneous income  
In accordance with Regulation 18, miscellaneous income includes the following categories of receipts 
accruing to the WTO:  WT/BFA/158  
 
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(a) receipts from the sale of publications and the provision of services;  
(b) the difference between gains and losses on exchange;  
(c) savings on previous year's outstanding obligations;  
(d) overhead on Trust Funds;  
(e) receipts from the rental of meeting rooms, office space, and common areas;  
(f) assessments from Observers;  
(g) refunds of expenditure of prior financial periods;  
(h) WTO cheques remaining uncashed for a period of twelve months after the date drawn;  
(i) other receipts.  
 
3.4  Proceeds from the sale of property, plant and equipment  
(a) For accounting purposes, any gain from the sale of property, plant and equipment and 
intangible assets shall be credited to miscellaneous income and any loss shall be debited 
to other expenses.  
(b) For budgetary purposes, the proc eeds from the sale of property, plant and equipment 
and intangible assets may be applied against the cost of replacement.   
 
3.5  Acceptance of funds for the WTO  
Payments to the credit of the WTO shall be directed to a WTO bank account.  
 
4  APPROPRIATIONS AND A LLOC ATIONS  
4.1  Responsibility of the Deputy Director -General in charge of Finance for the 
implementation of the approved budget  
The Deputy Director -General in charge of Finance is responsible to the Director -General for ensuring 
that the expenditure of the WTO und er the regular budget remains within the appropriations as 
voted and that such appropriations are used only for the purposes approved by the General Council.  
 
4.2  Responsibility of the Director of Administration and General Services Division to 
allocate approp riations in accordance with the Functional Budget  
The Director of Administration and General Services Division shall inform in writing the Directors of 
the amounts allocated to their divisions in accordance with the Functional Budget with the 
constraints l imiting the use of these appropriations.  
4.3  Periodic review of the expenditure position  
(a) The Administration and General Services Division shall monitor the extent to which 
allocations are used and prepare reports for the Director -General on amounts currently 
allocated, obligated and expended, and expected future expenditure, under the 
allocations.  
 
(b) Directors shall have access to information regarding the expenditures and unliquidated 
obligations recorded against their respective Division's allocations provided under the 
Functional Budget.  
 
(c) The budgetary reporting to the Members shall be performed as determined in Financial 
Regulation 37. However, if the scheduling of CBFA meetings does not allow for 
quarterly reporting six weeks from the end of the period, the q uarterly reports will be 
presented at the next scheduled CBFA meeting, noting that the year -end closure may 
require additional time.  
 WT/BFA/158  
 
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  4.4  Transfers between items within the approved budget  
Transfers between sections of the expenditure budget shall be handled t hrough the internal control 
system, subject to a report submitted by the Secretariat to the General Council for approval at the 
end of the financial period.  Transfers between items within the approved budget are only 
authorized pursuant to Regulation 21 o f the Financial Regulations.  
 
5  CONTROL OF OBLIGATIO NS 
5.1  Obligations to be incurred only by duly authorized officials  
No contract shall be concluded and no order shall be placed on behalf of the WTO except by an 
official to whom a formal authority to incur suc h obligations has been delegated by the Deputy 
Director -General in charge of Finance.  
 
5.2  Proposals or drafts having financial and/or budgetary implications  
(a) Any draft paper for the General Council which contains a proposal likely to have direct or 
indirect fi nancial or budgetary implications shall be signed by the Division's Director, or 
the staff member who has responsibility for the issue, and sent to the Director of 
Administration and General Services Division for financial evaluation and clearance 
before b eing submitted to the Deputy Director -General in charge of Finance for his or 
her approval.  
 
(b) Advance clearance and financial evaluation must be obtained before seeking the final 
approval on any document or communication having a direct or indirect financia l 
implication.  
 
5.3  Control of obligations  
(a) All contracts, appointments, mission orders, purchase orders, or other documents by 
which a financial obligation is to be incurred on behalf of the WTO must be submitted in 
advance to the Administration and General Se rvices Division for financial clearance.  
 
(b) An authorised official of the Administration and General Services Division shall review 
the obligating documents submitted in the light of the applicable financial regulations 
and rules, the approved budget, and th e available balances in the respective allocations. 
He or she shall also assure himself or herself that the principles of sound economy are 
maintained.  If the obligating document conforms with the above requirements, it shall 
be certified by an authorised  official of the Administration and General Services Division 
that funds are available and have been reserved to meet the resulting expenditure.  
Approved obligations shall be recorded by the Administration and General Services 
Division.  
 
(c) No obligating doc ument shall be released outside the WTO without the certification by 
an authorised official of the Administration and General Services Division that funds are 
available.  
 
5.4  Obligations to be incurred in conformity with the budget  
Obligations shall be incurre d only in strict conformity with the relevant budget.  All obligating 
documents submitted for financial clearance shall be accompanied by an indication of the appropriate 
accounting classification.  In case of doubt, the correct classification against whic h any charge is to 
be made shall be determined by the Head of Budget and Planning.  
 WT/BFA/158  
 
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  5.5  Objection to proposed obligations  
If the Director of Administration and General Services Division cannot approve an obligating 
document submitted for certification he or sh e shall state his or her objections in writing.  If the 
requesting official does not agree with the objection, the matter shall be referred to the Deputy 
Director -General in charge of Finance for decision.  
 
5.6  Adjustments of obligations  
If part or all of an a mount recorded as an obligation is no longer required for the purpose originally 
foreseen, the necessary adjustment shall be made immediately.  
 
6  PRESENTATION AND CON TROL OF CLAIMS  
6.1  Payments to be made on the basis of claims  
(a) In accordance with established pol icies, no payment shall be effected except for the 
payment of salaries, wages, regularly established allowances and amounts due under 
external collaboration contracts with individuals, unless claimed by the payee.   
(b) Payments due under external collaboratio n contracts with individuals shall be made on 
the basis of payment requests submitted by authorised officials; such requests shall be 
treated in the same way as claims.  
(c) For each claim submitted, the claimant shall certify that the claim is fair and correct  and 
that payment has not yet been received.  
(d) Where special forms for claims exist, claims must be presented on these forms.  
6.2  Supporting documents for claims  
(a) Claims submitted for payment must include supporting documents, either in paper or 
electronic format . 
(b) Payment of claims that are not supported by necessary documentation shall be refused 
by the Administration and General Services Division.  
6.3  Time -limits for the presentation of claims  
(a) All claims shall normally be presented within one month from the conclusi on of the 
event or activity.  
(b) Claims in respect of officially authorised travel shall be submitted within one month after 
such travel has been completed.   
(c) Claims for overtime shall be submitted within one month after such overtime has been 
completed.  
(d) Claim s involving discounts for prompt payment shall be flagged and shall be processed 
within the discount deadline.  
(e) Claims that do not respect the deadlines set in paragraphs (a), (b), (c), or (d) shall be 
refused for payment unless authorized by the Deputy Dir ector-General in charge of 
Finance.  
6.4  Control of claims  
(a) Officials authorised to certify claims  shall subject each claim to careful scrutiny before 
authorising payment, and shall maintain records of all claims processed for payment.  WT/BFA/158  
 
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(b) No claim shall be  authorised for payment unless its validity has been clearly established.  
 
(c) Officials authorised to incur obligations shall supply the officials authorised to certify 
claims with any information required in connection with the control of claims.  
 
6.5  Claims  to be accompanied by receiving reports  
(a) Paper or electronic format claims based on invoices for the provision of goods or services 
shall be submitted to the officials authorised to certify claims, together with a certified 
receiving report stating whet her the goods or services have been furnished in accordance 
with the specifications of the order, and whether the claim is administratively approved 
for payment.   
 
(b) Electronic format claims must be supported by proper documentation such as invoice and 
receipt of goods and services, in order to be processed in the workflow of the Enterprise 
Resource Planning (ERP) system.  
 
(c)  The Deputy Director -General in charge of Finance may waive the requirement of 
receiving reports in the case of standard service s such as public utilities.  
 
(d) For goods delivered to a place outside Geneva, payment may be authorized upon receipt 
of documents provided that the goods were dispatched appropriately insured to their 
destination.  A duly executed receiving report must b e forwarded to the Administration 
and General Services Division immediately upon receipt of goods.  
 
(e) In the case of Rule 6.5(c) the official forwarding the claim shall certify that the goods 
were dispatched with appropriate insurance coverage.  
 
6.6  Safeguar ds 
(a) Officials authorised to incur obligations and the officials authorised to certify claims shall 
take all necessary steps to avoid duplicate payments of claims.  
 
(b) Except where this is unavoidable, no official shall be assigned simultaneously any tw o of 
the following functions: purchasing and/or acceptance of goods or services, 
controlling/certifying claims and disbursing funds.  
 
6.7  Objection to a claim  
(a) When the Director of Administration and General Services Division or any duly authorised 
official  objects to the payment of a claim in full or in part, he or she shall communicate 
his or her objection to the official presenting the claim.  If the official does not agree with 
the objection, he or she may appeal through proper channels to the Deputy Dir ector-
General in charge of Finance.  
 
(b) If the Deputy Director -General in charge of Finance decides that a claim is to be paid 
notwithstanding an objection by the Director of Administration and General Services 
Division or by any duly authorised official,  he or she shall do so in writing without 
compelling the objecting official to be the one to effect the payment.  Such decision shall 
be in writing and a copy retained by the objecting official for audit purposes.   WT/BFA/158  
 
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  7  PAYMENTS  
7.1  Vouchers to support payments  
(a) No payments shall be effected without satisfactory supporting documents.  Except for 
payments made from cash advances, these documents must show that the payment 
has been approved by officials authorised to certify claims.  
 
(b) No verbal authority shall be accepted for making any payments.  
 
7.2  Payments to be made to duly entitled persons  
(a) Payments shall be made only to the persons to whom they are due, or to their legal 
representatives.  A payment shall be made to a bank account in the name of the person 
to whom payment is due.  
 
(b) The Director of Administration and General Services Division may refuse to effect 
payment of any salary, allowance or other payment to a third party claiming the 
payment on behalf of the person to whom it is due. If payments ar e made to such third 
party or a legal representative, the nature of the authority under which such payment 
has been made shall be stated on the supporting document. The cession or other 
authority shall either be attached to the supporting document, or the Director of 
Administration and General Services Division shall certify on the supporting document 
that a sufficient authority was produced.  
 
7.3  Officials authorized to make payments and designation of cashiers  
(a) All payments  shall be made by duly authorised off icials of the Administration and 
General Services Division after approval by the officials authorised to certify claims, 
except for payments made by any other person specifically designated for this purpose 
by the Deputy Director -General in charge of Finan ce.  
 
(b) Officials who are to perform the function of cashier shall be designated by the Director 
of Administration and General Services Division. The exact duties of each cashier shall 
be notified to him or her in writing by the designating official. Petty c ash management 
is set according to the policy approved by the Deputy Director General in charge of 
Finance.  
 
7.4  Staff remuneration, reimbursement and recoverables  
(a) Salaries, wages and contributions to pension and medical plans shall be paid in 
accordance with the relevant provisions of the Staff Regulations and Staff Rules, or 
other applicable rules, such as Administrative Memoranda.  All amounts deducted 
from salaries shall be paid as soon as practicable to the accounts to which these 
amounts are due.   
 
(b) Reimb ursement for travel expenses and payment of any allowances, grants or 
indemnities to members of the staff shall be effected in accordance with the Staff 
Regulations and Staff Rules or other applicable rules, such as Administrative 
Memoranda.  
 
(c)  Any paym ent to staff members, which was not due to them, can be recovered 
pursuant to Staff Rule 106.9 through the payroll, with the deduction of the total 
amount effected within a period not exceeding 12 months. Where the irregularity of 
the payment was due to ne gligence on the part of the staff member, by not informing 
the Secretariat of changes in his or her circumstances that have an impact on his or 
her benefits, or was so apparent that it could not have been realistically missed by the 
staff member, the right  of the WTO to recover such payment shall not lapse.  WT/BFA/158  
 
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  7.5  Advance and progress payments  
The Director of Administration and General Services Division may authorise the inclusion in a 
contract of provision for such advance payments or partial payments for work in  progress as may be 
required by normal commercial practice and the interests of the WTO.  Except for (i) cases where 
specific provision of this nature have been included in a contract with the approval of the Director of 
Administration and General Services  Division, (ii) cases involving standard services such as public 
utilities, or (iii) cases covered by Rule 6.5(d), payment may be made only after the services or goods 
have been received.  Claims for advance and progress payments shall be presented in acco rdance 
with Rule 6.5.  
 
7.6  Time -limits for payments  
(a) Once it has been ascertained that a payment is in order, it shall be made within a 
maximum of ten (10) working days.  
 
(b) Proper attention shall be paid to claims offering a cash discount for prompt payme nt. 
 
7.7  Currencies of accounting and currency conversion rates  
(a) The accounts of the WTO shall be maintained in Swiss Francs ; however subsidiary 
accounting records may be maintained in other currencies.  
 
(b) The conversion rates used for internal accountin g purposes, called the WTO rate of 
exchange, shall be set by the Deputy Director -General in charge of Finance.  
 
(c) Contributions received in a currency other than the Swiss franc shall be converted and 
credited at the bank rate of exchange at the time of receipt indicated by the value date 
and recorded at the WTO rate of exchange.  Gains or losses in exchange shall be 
accounted for under (j) below.  
 
(d) Salaries shall be paid in Swiss Francs. The currencies in which the allowances of WTO 
staff members may be paid (whatever the currency in terms of which the entitlement is 
expressed) shall be established by the Deputy Director -General in charge of Finance.  
 
(e) When allowances are paid in a currency other than that in which they are expressed, 
the rate of ex change used for the payment shall  be the WTO rate of exchange 
applicable at the time of payment.  
 
(f) Advances relating to allowances (except with regard to Education Grants) and expenses 
of staff members for which the entitlement is expressed in terms of a currency other 
than the Swiss Franc shall be recorded in Swiss Francs at the WTO rate of exchange 
applicable at the time of the advance.  
(g) Education Grants:  
 
(i)  Advances relating to Education Grants and made in currencies other than Swiss 
Francs shal l be recorded in Swiss Francs at the WTO rate of exchange;   
 
(ii) final settlement will be calculated in the same currency as the advance, and 
recorded in Swiss Francs at the WTO rate of exchange.  
 
(h) When expenses incurred by staff members or other pers ons to whom a payment is due 
from the WTO are reimbursed by the WTO in a currency other than that in which the 
expenses were incurred, the conversion rate used for the purpose of the reimbursement 
shall be the WTO rate of exchange applicable on the date on  which the expenses were 
incurred.  WT/BFA/158  
 
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(i) in cases of trust funds where a related advance has been made in a currency 
other than that in which the expenses are reimbursed by the WTO, the expenses 
incurred up to the amount of the advance shall be converted a t the rate of 
exchange at which the advance was secured.  
 
(i) Where a third currency is involved, the local currency obtained by the conversion of the 
second currency shall be taken into account at the WTO rate of exchange and any 
difference as a loss or g ain on exchange.   
 
(j) Exchange gains and losses resulting from the revaluation of assets and liabilities held in 
currencies other than the Swiss franc shall be accounted under miscellaneous income.  
 
7.8  Responsibility for payments  
An instruction from a super ior shall not relieve an official authorized to approve payments from 
responsibility for an irregular payment, unless the irregularity was pointed out by the official to the 
Director of Administration and General Services in writing and the objection was o verruled in writing.  
If the Director of Administration and General Services Division objects to a payment and this 
objection is overruled by the Deputy Director General in charge of Finance, the overruling should be 
in writing, with a copy to the Director  General, and shall be reported to the External Auditor.  
 
7.9  Payments through third parties  
(a) Duly authorised  officials of the Administration and General Services Division may 
transfer funds to be distributed via agreed partners.  Such partners shall be defined  
by specific agreements with the WTO.  
7.10  Ex gratia  payments  
The Director -General may, on an exceptional basis, authorise such ex gratia  payments as he or she 
deems to be necessary in the interests of the WTO.  A statement of such payments, specifying the 
precise amount and the recipient of each ex gratia payment, shall be submitted with the final 
accounts.  
 
7.11  Payments by official credit card  
Official credit cards may be issued to some officials, by the Director of the Administration and 
General Services Divisio n, to transact on behalf of the WTO. The officials who are provided with 
the official credit cards will be provided with written instructions on the permissible use of the 
credit cards.   
 WT/BFA/158  
 
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  8  TREASURY MANAGEMENT  
8.1  Treasury management  
The Deputy Director -Gener al in charge of Finance shall establish a Treasury Management Policy for 
funds in the custody of the Director -General.  The Director of Administration and General Services 
Division shall be responsible for its implementation.  
 
8.2  Designation of banks  
The Depu ty Director -General in charge of Finance shall designate banks of internationally 
recognised standing to facilitate treasury management operations of the funds of the WTO. The 
criteria for the selection of banks shall be in accordance with the Treasury Man agement Policy.     
 
8.3  Operation of bank accounts  
Bank accounts shall be operated jointly by two or more officials to be designated by the Director -
General.  
 
8.4  Investment of funds  
(a) Funds that are not immediately required shall be invested in non -speculativ e 
investments, in accordance with Financial Regulation 31.  
 
(b) Other funds for which the Director -General is responsible shall be invested in 
accordance with any special guidelines in force for such funds, or in the absence thereof, 
in similar manner to f unds available under the regular budget.  
 
8.5  Loss of cash - cases of fraud  
Any loss of cash or negotiable instruments resulting from fraud, suspected fraud, presumption of 
fraud or attempted fraud must be reported at once to the Office of Internal Oversight w hich will 
ensure that appropriate follow -up action is taken.  
 
8.6  Exchange of currencies  
Officials designated by the Deputy Director -General in charge of Finance shall be responsible for the 
operation of official Bank Accounts and giving instructions for the e xchange of funds from one 
currency to another, in accordance with the Treasury Management Policy.  
 
9  PROCUREMENT  
9.1  Authority and responsibility  
(a) The Deputy Director -General in charge of Finance shall be responsible for the 
procurement functions of the WTO. He o r she shall issue administrative instructions 
concerning the types of Procurement activity and monetary values for which such 
methods of solicitation are to be used.  
(b) Delegation of authority from the Deputy Director -General in charge of Finance shall be 
assigned on an individual basis.   
(c) The Deputy Director -General in charge of Finance shall establish a Contracts 
Committee. He or she shall issue administrative instructions concerning the activity of 
such committee. The Contracts Committee shall meet to consi der purchases falling 
under the terms of Rule 9.2 and for any amount equal to or greater than CHF50,000.   
(d) The Deputy Director -General in charge of Finance may establish other review 
committees to provide written advice to officials engaged in procurement.   The Deputy WT/BFA/158  
 
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  Director -General in charge of Finance shall establish the composition and terms of 
such committees.   
(e) Where the advice of any review committee is required, no final action leading to the 
award or amendment of a procurement contract may be take n before such advice is 
received.  
(f) In cases where the Deputy Director -General in charge of Finance decides not to accept 
the advice of the Contracts Committee or any other review committee, he or she shall 
record the reasons for such decision, in writing, and communicate it to the Contracts 
Committee.   
9.2  Competitive bidding and advertising  
(a) Consistent with the principles set out in Regulation 42 and except as otherwise 
provided in Rules 9.2(b) and 9.3, procurement contracts shall be awarded on the 
basis of ef fective competition. To this end the competitive process shall, as necessary, 
include:  
(i) Acquisition planning for developing an overall procurement strategy and 
procurement methodologies.  
(ii) Market research for identifying potential suppliers while enc ouraging as much as 
possible international procurement.  
(iii) Consideration of prudent commercial practices.  
(iv) Formal methods of solicitation, utilizing invitation to bid or request for proposals 
on the basis of advertisement or direct solicitation of p otential suppliers, or 
informal methods of solicitation such as request for quotations.  
(v) Due consideration of additional costs related to the implementation of the 
contract.  
(b) Rule 9.2 (a) shall not apply to employment contracts, to external collaboratio n 
contracts with individuals, or to procurement of goods and services in relation to 
technical cooperation projects. Financial criteria and procedures applicable to such 
contracts shall be approved by the Deputy Director -General in charge of Finance.  
9.3   Exce ptions to advertising requirements  
The Deputy Director -General in charge of Finance may waive the application of Rule 9.2(a) in 
cases where he or she decides in the interest of the WTO to do so, and in particular:  
 
(a) when there is no competitive marketplace for the goods or services to be procured, 
such as where a monopoly exists, where prices are fixed by legislation or government 
regulation or where the procurement involves a proprietary product or service;  
(b) when there has been a previous determination or t here is a need to standardize the 
goods or services to be procured which renders competition impracticable;  
(c) when there is extreme urgency, provided that the circumstances are unforeseen and a 
lack of diligence and/or foresight by a WTO service is not the c ause of this extreme 
urgency;   
(d) when offers for identical products and services have been obtained competitively 
within the previous 12 months;  
(e) when documented efforts to obtain satisfactory bids through effective competition 
have failed to provide satisf actory results;  WT/BFA/158  
 
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  (f) when the proposed procurement is the result of cooperation with other international 
organizations or a specific agreement with a donor;  
(g) when the proposed procurement is for the purchase or lease of real property and 
market conditions do no t allow for effective competition;  
(h) when the proposed procurement relates to obtaining goods and services that do not 
lend themselves to comparison.   
(i) when, within the calendar year,  the value of the procurement is below the monetary 
threshold established  for competitive bidding.  
A record shall be maintained of all cases in which the application of Rule 9.2 (a) has been waived.    
 
9.4  Awarding of contracts  
Contracts, including purchase orders, shall be awarded based on the following requirements:  
 
(a) In the cas e of Requests for Quotations (RFQ) and Invitations to Bid (ITB), contracts 
shall be awarded to the best qualified vendor submitting the most technically 
acceptable and lowest quotation or bid.  
(b) In the case of Requests for Proposals (RFP), contracts shall b e awarded to the qualified 
vendor whose proposal is considered to offer the best value (technical and financial) 
and the most responsive to the needs of the WTO.  
(c) If the interest of the WTO so requires, any or all quotations, bids or proposals 
submitted in  accordance with procedures identified in (a) or (b) above may be 
rejected. In such a case, the reasons for rejection shall be recorded and a 
determination shall be made in accordance with approved policies and procedures 
whether to solicit new competitive  tenders, to enter into a negotiated contract or to 
cancel the procedure.  
9.5  Purchase to be made in writing  
(a) All purchase orders or contracts shall be made in writing.  
(b) The documents embodying the terms of such purchases shall in all instances, provide 
detailed  information regarding the following:   
i. the description of the products or services being procured;  
ii. the quantity being procured;  
iii. the total value of the procurement and/or unit price(s);  
iv. the period covered;  
v. the conditions to be fulfilled , including the WTO general terms and conditions;  
vi. the terms of delivery and payment;  
vii. the name and address of supplier.  
(c) The requirement for written procurement contracts shall not be interpreted to restrict 
the use of any electronic means of data e xchange provided that the system concerned 
is capable of ensuring authentication and confidentiality of the information.   WT/BFA/158  
 
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  9.6  Written findings  
(a) Each determination or decision required of an authorised procurement official by the 
provisions of these rules shall be documented and placed in the appropriate record.  
 
(b)  An instruction from a superior shall not relieve an Official authorized to approve 
purchase orders from the responsibility for an irregular purchase unless the 
irregularity was pointed out by  the Official, to his or her direct supervisor or to the 
Chair of the Contracts Committee, in writing and the objection was overruled in 
writing. In the event that Director General deems that a departure from procurement 
processes is desirable in the inter est of WTO, as envisaged in Financial Regulation 42, 
he or she shall make such determination in writing and a copy thereof shall be 
provided to the External Auditor.  
 
10  PROPERTY  
10.1  Authority and responsibility  
The Deputy Director General in charge of Finance is  responsible for the management of the 
property, plant and equipment and inventories of the WTO, including all systems governing their 
receipt, valuation, recording, utilization, safekeeping, maintenance, transfer and disposal, 
including sale, and shall de signate the officials responsible for performing property management 
functions.  
10.2  Property records  
(a) Records shall be maintained of all property, plant and equipment, supplies and 
materials received, issued, sold or otherwise disposed of, and remaining on hand.   
 
(b) The Director of Administration and General Services Division shall establish the nature 
and extent of the records to be maintained for the purposes of this Rule.  
 
(c) Records shall be maintained, in respect of supplies and property accounts, b y a 
designated official.  
 
(d) Control accounts shall be maintained recording the total value of capital assets 
purchased and sold, or otherwise acquired and disposed of.  
 
10.3  Physical inventories  
Physical inventories shall be taken of all supplies, equipment or other property of the WTO, or 
entrusted to the charge of the WTO, at such intervals as may be deemed necessary by the Deputy 
Director -General in charge of Finance to ensure adequate control over such property. In addition, 
the receiving officer shall ce rtify that the goods received have been entered in the register of 
stocks or inventory.  
 
10.4  Use of property or services of the WTO  
(a) The property or the services of the WTO shall not be used for private purposes except 
where specifically authorised in the i nterest of the WTO by the Director of 
Administration and General Services Division.  
 
(b) The Director of Administration and General Services Division shall determine the 
amounts due to the WTO for the use of its property or services.  
 
(c) Goods or services  of the WTO may be made available to Members or any other entities 
on such terms and conditions as may be appropriate in each case.  
 WT/BFA/158  
 
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  10.5  Treatment of cases of loss of assets, fraud or unrecoverable debt  
(a) The Director of Administration and General Services D ivision may authorise write -off of 
cash, stores or other assets not exceeding the equivalent of 5,000 Swiss Francs in each 
case to be written off if in his or her judgement the cost of recuperating the loss would 
exceed the amount to be written off, or if it is very unlikely that action to recuperate 
the loss would be successful.  
 
(b) The Deputy Director -General in charge of Finance may authorize the writing -off of 
losses exceeding the equivalent of 5,000 Swiss Francs,  taking into account the 
constraints a s per Financial Regulation 41.  
 
(c) All losses which are written off shall be included in the annual financial statements and 
submitted to the external auditor with the relevant accounts. The asset records shall be 
updated accordingly.  
 
(d) The Office of I nternal Oversight shall determine if the responsibility for the loss, if any, 
should be assigned to a staff member of the WTO.  A staff member held responsible for 
such loss may be sanctioned up to the amount of the loss, irrespective of whether the 
loss is covered by insurance or not.  
 
(e) Any case of fraud, presumption of fraud or attempted fraud must be reported to the 
Office of Internal Oversight.  
 
(f) Amounts written off and subsequently recovered after the close of the financial period 
in which the wr iting-off occurred shall be treated as miscellaneous income.  
 
10.6  Accounting for donated property  
Goods received and accepted by the WTO as gifts or entrusted to the charge of the WTO, shall be 
tracked and registered/recorded in the same manner as other goods acquired by the WTO.  
 
10.7  Disposal of surplus property  
Property, plant and equipment and intangible assets that are declared surplus, unserviceable or 
obsolete shall be disposed of according to the policy authorized by the Deputy Director -General in 
charge of Finance.  
 
11  THE ACCOUNTS  
11.1  Responsibility for maintaining and reporting the accounts  
The accounts shall be maintained and presented by the Administration and General Services Division 
as prescribed in Chapter XI of the Financial Regulations.  
 
11.2  Principal accoun ts 
In accordance with the International Public Sector Accounting Standards (IPSAS), financial 
statements submitted to the External Auditors for all accounts shall include:  
 
(a) Statement of financial position;  
(b) Statement of financial performance;  
(c) Statement of c hanges in net assets/liabilities;  
(d) Cash flow statement (indirect method);  
(e) A statement comparing budgeted and actual amounts;  
(f) Notes to the financial statements, comprising a summary of significant accounting 
policies and other explanatory notes;  WT/BFA/158  
 
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  (g) Separate sta tements and accounts for the Working Capital Fund and for any Trust 
Funds or Special Accounts.  
 
11.3  Accrual Basis accounting  
Unless otherwise directed by the particular terms governing the operation of a trust fund or a 
special account, all financial transacti ons shall be recorded in the accounts on an accrual basis in 
compliance with the International Public Sector Accounting Standards (IPSAS).  
 
11.4  Archives  
Accounting and other financial records and all supporting documents shall be retained in 
accordance with th e policy approved by the Deputy Director -General in charge of Finance after 
which they can be destroyed.  
 
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