RESTRICTED  
  
WT/BFA/W/300  
 
8 May 2013  
(13-2448)  Page: 1/43  
Committee on Budget, Finance and Administration  Original: English  
 
 REPORT OF THE OFFICE OF INTERNAL AUDIT (OIA) 
JANUARY - DECEMBER 2012 (Y2012) 
 WT/BFA/W/300 
 
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  CONTENTS 
EXECUTIVE SU MMARY ...................................................................................................... 3  
1   INTROD UCTION  .......................................................................................................... 8  
2   WORK PROGRAM SUMMARY ........................................................................................ 8  
2.1   Audit Plan Y 2012 ....................................................................................................... 8 
2.2   Ad Hoc Audit ............................................................................................................. 9  
2.3   Audit of Consultants and Related Service Providers ........................................................ 10 
2.4   Delegation of Authorit y and Responsib ility Matrix .......................................................... 14 
2.5   Follow-up Audits ....................................................................................................... 14 
2.5.2   Procur ement Audit ................................................................................................. 14 
2.5.3   Mission Travel ....................................................................................................... 16 
2.5.4   Payro ll ............................................................................................................... .. 18 
2.5.5   ITTC Administrative and Logistical Support Activities ................................................... 20 
2.5.6   Cleaning and Maintenance Services .......................................................................... 22 
2.5.7   Security and Safety Activities .................................................................................. 25 
3   EXTERNAL REVIEW .................................................................................................... 27  
4   THE OIA STAFFING .................................................................................................... 27  
5   PERSONNEL DEVELOPMENT ....................................................................................... 27  
6   AUDIT PLAN  FOR Y2013 ............................................................................................ 28  
7   CONC LUSION............................................................................................................. 28  
ANNEX A SUMMARY IMPLEMENTATION STATUS OF SIGNIFICANT 
RECOMMENDATIONS AS AT 31 DECEMBER 2012 ............................................................ 29  
ANNEX B SUMMARY IMPLEMENTATION STATUS OF ALL AUDITS AS AT 31 
DECEMBER  2012 ............................................................................................................. 30  
ANNEX C SUMMARY IMPLEMENTATION STATUS OF SIGNIFICANT 
RECOMMENDATIONS AS AT 30 APRI L 2013 ................................................................... 31  
ANNEX D AUDIT LIFECYCL E ........................................................................................... 32  
ANNEX E CONSULTANTS AND RELATED SERVICE PROVIDERS- IMPLEMENTATION 
STATUS OF OUTSTANDING SIGN IFICANT RECOMMENDATIONS ..................................... 33  
ANNEX F MISSION TRAVEL - IMPLEMEN TATION STATUS OF OUTSTANDING 
SIGNIFICANT RECO MMENDATI ONS ............................................................................... 36  
ANNEX G PAYROLL AUDIT - IMPLEMEN TATION STATUS OF OUTSTANDING 
SIGNIFICANT RECO MMENDATI ONS ............................................................................... 39  
ANNEX H ITTC ADMINISTRATIVE AND LOGISTICAL SUPPORT ACTIVITIES-
IMPLEMENTATION STATUS OF  OUTSTANDING SIGNIFICANT 
RECOMMENDATIONS ...................................................................................................... 40  
ANNEX I CLEANING AND MAINTENANCE SE RVICES - IMPLEMENTATION STATUS 
OF OUTSTANDING SIGNIFIC ANT RECOMMEND ATIONS .................................................. 41  
ANNEX J SECURITY AND SAFETY ACTIVI TIES - IMPLEMENTATION STATUS OF 
OUTSTANDING SIGNIFICAN T RECOMMENDATIONS ....................................................... 43  
 WT/BFA/W/300 
 
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  EXECUTIVE SUMMARY 
1.1.  This annual audit report covers Internal Audit activities of the World Trade Organization for 
the period January to December 2012, which period constitutes the OIA's fifth year of operation since its inception in March 2008.  
1.2.  The Internal Audit Charter requires the OIA to present an annual summary report to the DG, 
with a copy to the External Auditor, of activiti es undertaken and progress on implementation of 
audit recommendations. The report is also presented to the CBFA. 
1.3.  The report constitutes: an introduction; a work program summary for Y2012; summary 
results from a review of the OIA activities by the External Auditor; the OIA staffing; personnel development; the audit plan for Y2013 and a conclusion.  
1.4.  Following the audit lifecycle outlined in Annex D, which is subject to review as necessary, and 
g u i d a n c e  f r o m  t h e  I I A  s t a n d a r d s ,  t h e  O I A  i s  provided with the opportunity to get a better 
understanding of the Organization's governance, risk management and control processes and to give priority to areas and events that expose the Organization to high risks in terms of the extent 
to which they might impact it. 
1.5.  Therefore for Y2012, the OIA:  reviewed and issued an ad hoc report on a cl eaning contract which became the subject of 
addenda. The objective was to identify lessons learnt that would provide improvements in 
future contracting;  
 issued one audit report, on consultants and related activities; 
 completed work on delegation of authority in the WTO. The document was placed on the 
intranet for consultation by staff; 
 performed twelve follow-up audits on various activities to verify the corrective actions taken 
by management to address reported issues from completed audit reviews. The activities 
included, procurement, the payroll, mission trav el, ITTC administrative and logistical support 
activities, cleaning and maintenance services, and security and safety activities; 
 underwent a review of its operations by the Ex ternal Auditor during the last quarter of the 
year. 
1.6.  No limitations were placed on the scope of work of the OIA in the course of conducting its 
activities. 
1.7.  The OIA has remained open to opportunities for improvement. In Y2012 therefore, 
recommendations by the CBFA of March 2012 have b een taken into consideration in drafting this 
report in order to have a more qualitative analysis including; putting a timeline to each outstanding recommendation; indicating the person responsible for corrective action; indicating 
how many significant recommendations have been implemented, how many remain outstanding 
and what is being done to ensure that they are implemented.  
1.8.  Unlike previous annual reports therefore, this and subsequent reports will focus more on 
significant audit findings and recommendations, whic h if not addressed, are likely to greatly impact 
the Organization's: efficiency and effectiveness in achieving its objectives; integrity of financial information; compliance with Staff Rules, Regulations, policies and procedures and adequacy of internal control systems.  
1.9.  Reference will also be made to pre-Y2012 events of a significant ranking, as appropriate. 
1.10.  Consequently, only those items that are outstanding (WIP and open) and which are 
significant in ranking, have been included in Annexes E to J, for purposes of showing the persons 
responsible for their implementation, the plans of  action which are denoted by comments from the WT/BFA/W/300 
 
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  implementing Divisions and expected completion dates. Nevertheless, the realized and closed 
items of significant ranking are explaine d in the main body of the report.  
1.11.  As at the close of Y2012, the OIA had conducted seven planned audits since inception, one 
global review and documentation on delegation of authority, one ad hoc audit and one 
investigation resulting in one hundred and eighty two recommendations, one hundred and fifty six 
(86%) of which were considered to be significant in ranking. A more comprehensive summary of the significant recommendations is outlined in Annex A. 
1.12.  Management has substantially implemented or is in the process of implementing the 
recommended corrective actions. 
1.13.  As indicated in Table 1 below, one hund red and nine (70%) of the significant audit 
recommendations have been implemented and therefore closed as at 31 December 2012. Of 
these, forty-one (38 %) were realized during Y2012.  
1.14.  In addition, twenty-seven (17%) of th e significant audit recommendations are in the 
process of being implemented while twenty (13 %)  have not yet been implemented but there are 
action plans in place where relevant, to ensure that corrective actions are taken.  
1.15.  The OIA has, according to the type of risk exposure, grouped the audit recommendations 
into descriptive categories as follows:-  
a. Operational  or process - arise from inadequate or failed internal processes, people, 
systems, administrative procedures or from external events affecting the operations of the WTO; 
b. Compliance  - associated with the need to comply with Staff Rules, Staff Regulations, 
Contracts or best practices; 
c. System  or Technology - associated with network failures, lack of system resources and 
skills, hacking and viruses, inadequate system  optimization or poor system integration; 
d. Financial  - associated with the handling of money, recording of financial transactions and 
events that may potentially result in financial loss for the WTO; 
e. Strategic  - may arise from: inadequate resource allocation, a failure to respond well to 
changes in the business environment, the pursuit of an unsuccessful business plan, 
making poor business decisions or from sub-standard implementation of business decisions.  
1.16.  Therefore, out of one hundred and fifty six significant recommendations, 65% are 
operational in nature, 19% compliance, 10% system-based or technological, 4% financial and 1% 
strategic as depicted in Table 1 and relevant graph below. The OIA will continue to review the categories with future audits.  
1.17.   With the forthcoming change in management  in the last quarter of Y2013, the report takes 
into consideration any corrective actions taken by outgoing management during the first quarter of Y2013.One hundred and twenty (77%) of the si gnificant audit recommendations have been 
implemented and closed as at 30 April 2013 of whic h eleven (9%) were implemented in the first 
quarter of Y2013. Twenty-one (13%) are in the pr ocess of being implemented while fifteen (10 %) 
have not yet been implemented. Table 1 and relevant graph below give a snapshot of the implementation status of audit recommendations as at 30 April 2013 with a more comprehensive 
summary in Annex C. Recommendations that were implemented in Y2013 are further briefly 
explained under each relevant audit subject. 
1.18.  For purposes of this report, all percentages have been rounded up to the nearest whole 
number.  WT/BFA/W/300 
 
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  Table 1 
AUDIT RECOMMENDATIONS AND  
IMPLEMENTATION STATUS-SUMMARY 
  Total 
number  
Significant  % 
Significant     
Total  recommendations(2008- 2012) 182 156 86%     
  
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY 
Implementation status as at 31.12.12 
Audit category  
Closed  
WIP  
Open  
Total  
%     
Operational  80 19 3 102 65% 
Compliance 13 4 13 30 19% 
System 11 3 1 15 10% 
Financial  3 1 3 7 4% 
Strategic 2 - - 2 1% 
Total number of significant recommendations  109 27 20 156 100% 
Total % 70% 17% 13% 100%   
  
of which in Y2012           
Number of closed significant recommendations 41   
    
Operational  23 
Compliance 9 
System 7 
Strategic 2 
%   38% 
  
Implementation status as at 30.04.13 
Audit category           
    Closed WIP Open Total % 
Operational  88 12 2 102 65% 
Compliance   16 5 9 30 19% 
System   11 3 1 15 10% 
Financial    3 1 3 7 4% 
Strategic   2 - - 2 1% 
 Total   120 21 15 156 100% 
Total % 77% 13% 10% 100%   
 WT/BFA/W/300 
 
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Figure 1 Summary-Significant Recommendations 
as at 31 December 2012  Figure 2 Summary-Significant Recommendations 
as at 30 April 2013  
Closed WIP Open
Strategic 1% 0% 0%
Financial 2% 1% 2%
System 7% 2% 1%
Compliance 8% 3% 8%
Operational 51% 12% 2%0%10%20%30%40%50%60%70%80%
 
Closed WIP Open
Strategic 1% 0% 0%
Financial 2% 1% 2%
System 7% 2% 1%
Compliance 10% 3% 6%
Operational 56% 8% 1%0%10%20%30%40%50%60%70%80%90%
 
 
1.19.  Going forward, the OIA will continue to incorporate improvement initiatives in its policies, practices, methodology and performance metrics to ensure that the audit activity continues to add 
value and improve the Organization's operations. The OIA also plans to report on corrective 
actions that are overdue.  
1.20.  Appreciation  1.21.  The OIA extends its appreciation to management and staff of the WTO for the support and 
good collaboration during audit engagements. 
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  WT/BFA/W/300 
 
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  ACRONYMS 
 
AGSD  Administration and General Services Division 
BTOR  Back To Office Report 
CBFA  Committee on Budget, Finance and Administration 
CDM  The Chemin Des Mines premises 
CHF  Swiss Francs 
CWR  Centre William Rappard DDG  Deputy Director(s) General DG  Director General  
DSA  Daily Subsistence Allowance 
GATT  The General Agreement on Tariffs and Trade HRD  Human Resources Division  
HRMS  Human Resources Management System (Oracle) 
IIA  Institute of Internal Auditors ITSD  Information Technology Solutions Division  
ITTC  The Institute for Training and Technical Cooperation 
JAC  Joint Advisory Committee  KPI  Key Performance Indicator(s) LDIMD  Languages, Documentation and Information Management Division 
OIA  Office of Internal Audit 
RAR  Regional Activity Request SSA   Special Service Agreement(s) 
SSC   Special Service Contract(s) 
SWR  The Salle William Rappard premises  TA  Technical Assistance 
WIP   Work In Progress 
WTO  World Trade Organization WT/BFA/W/300 
 
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  1  INTRODUCTION 
1.22.  The OIA provides an independent, objective assurance and consulting activity designed to 
add value to the WTO and improve its operations. It helps the WTO to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk 
management, control, and governance processes. 
1.23.  During Y2012, its fifth year of operation, the OIA continued to support management by 
ensuring that accountability is strengthened within its scope of work, risks are identified and audit 
recommendations made to manage the risks. The OIA also focused on monitoring the corrective 
actions taken by management to address reported issues from completed audit reviews. 
2  WORK PROGRAM SUMMARY 2.1  Audit Plan Y2012 
2.1.  While recognizing the on-going initiatives to have an Organization-wide risk management 
framework in place, until consistent risk language and taxonomies are achieved across the Organization, the OIA derives the audit topics from discussions and interviews with management, 
as outlined in the audit lifecycle in Annex D, in order to identify high risk priority areas. The 
discussions also provide input to an audit universe which will be standardized to allow the OIA to build comparable information overtime in order to perform better trending and analysis on internal 
controls.  
2.2.  The audit plan for Y2012 constituted the following audits and activities: 
a. audit of consultants and related service pr oviders, both individuals and consulting 
firms/companies; 
b. follow-up audits; 
c. delegation of authority and responsibility matrix; 
d. ad hoc audits. 
2.3.  The plan was approved by the DG, comm unicated to the External Auditor, issued to 
management and presented to the CBFA in March 2012.  
2.4.  The OIA uses standard rating criteria to assess audit observations, reportable deficiencies 
and risks according to their impact and likelihood.  
2.5.   Significant  observations are those that could have a substantial negative impact upon, not 
only the achievement of system, function or proc ess objectives but also the achievement of the 
Organization’s objectives. These may include but are not limited to; material irregularities and 
errors; inefficiency; fraud; waste; ineffectiveness;  conflict of interest; non-compliance with laws, 
regulations, policies, procedures and contracts; negative publicity of the WTO and other significant control weaknesses. The observations falling under this category require immediate attention to 
correct the anomalies. 
2.6.  Audit observations with a moderate  ranking are characterized by anomalies with 
consequences which, if not mitigated, could have a multiplying effect and affect the achievement 
of objectives. Whilst individually these anomalies may not have serious consequences, when taken 
collectively, risk exposure could possibly increase  as they can easily become high risks. They 
therefore need to be addressed to further streng then internal controls and mitigate the risks. 
2.7.  Observations with a low ranking have no observed consequences at the time of audit, but 
addressing the weaknesses would strengthen the controls and result in more efficiency and 
effectiveness in operations. 
2.8.  Observations with a satisfactory  ranking indicate no anomalies at the time of audit and within 
the scope of audit. WT/BFA/W/300 
 
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  2.9.  Effective Y2012 reporting, focus will be more on significant audit findings and 
recommendations, a summary status of which can be consulted in Annex A. These will be described and classified according to the type of risk exposure, that is, operational, compliance, 
system, financial or strategic as explained in the summary report above. The OIA will continuously 
review the categories with future audits. 
2.10.  Nevertheless, the implementation status of all audit recommendations, significant or not, at 
different dates can be found in Annex B. 
2.2  Ad Hoc Audit  
2.11.  An ad hoc audit was carried out during the first quarter of Y2012 in response to a request 
from management to review a cleaning contra ct that became the subject of addenda. The 
objective was to assess potential shortcomings in hiring a facility management consultant who was 
tasked with studying the cleaning situation, re -assessing and amending the terms of reference for 
cleaning services and facilitating in contracting a new provider.  
2.12.  According to the audit findings, the WT O function concerned with managing cleaning 
services (Building and Technical Services now called Facilities Management): did not voluntarily 
initiate the process of hiring a facility management consultant neither did it fully certify the work done; possessed the required skills-set to study the cleaning situation and to re-assess and amend 
the cleaning terms of reference; was more conversant with the surfaces to be cleaned and the 
needs of the Organization and therefore  questioned in writing several aspects of the consultant's work.   
2.13.  It was the audit's opinion that hiring a consultant risked demotivating in-house resources 
that could have been used to re-assess and am end the existing terms of reference. It also 
reflected inefficient and ineffective use of the Or ganization's financial and human resources. This 
oversight on the part of the WTO could have contributed to the omissions and miscalculations by 
the consultant, in the surface area to be cleaned and therefore in the terms of reference resulting 
in a contract with a new provider that became the subject of addenda. Such addenda became a 
source of concern for management. The 3-year contract (January 2012 to December 2014) had a 
ceiling amount of CHF 2,434,336.  
2.14.  Besides, prior to engaging the consultant , the responsible function had already made known 
and officially reported on the shortcomings in the cleaning situation, an on-going review of the cleaning situation by the OIA had also underscored the same shortcomings all of which were not 
much different from what was reported by the consultant. The consultant therefore, according to 
the responsible function, added no value but only confirmed the status quo of the cleaning situation.  
2.15.  Major learnings identified by the audit included: a need for functions responsible for 
implementing acquisition projects to initiate Requisitions for procuring consulting services of this nature so that they fully own and achieve more effective control of the procurement process and 
monitor the work done; more efficient and effective use of the WTO 's financial and human 
resources by employing internal resources that po ssess the required skills-set if available instead 
of hiring consultants; only making payment for work that is duly certified by the requisitioning/implementing function and only for work that is satisfactorily accomplished; 
complying with the procurement guidelines, princi ples and best practice notably, transparency, 
best value for money; adequate interaction betwee n the requisitioning function and the consultant 
for better definition of the WTO technical needs and management of the procurement project. 
2.16.  The identified lessons learnt were verified further during the year from a broader 
perspective when reviewing consultants and related service providers. In general, the identified 
anomalies and learnings were found to have been very much peculiar to the process of contracting 
the cleaning service provider and not common with the other contracting processes that were 
assessed by the audit. 
 WT/BFA/W/300 
 
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  2.17.  The audit also verified whether the addenda resulted in a more costly contract than 
anticipated. Despite omissions (7,320  m2) in the surface area to be cleaned that were catered for 
by subsequent addenda to the contract, the actu al expenditure incurred at the end of December 
2012, CHF 694,275 was found to be lower than what was anticipated when the original contract 
was signed in December 2011. This was because of various adjustments in costs as explained in 
Table 2 below which shows the evolution in costs and surface area to be cleaned. 
Table 2  
Cost and surface evolution of cleaning service contract  
 December 2011  Addendum January 2012  Addendum July  2012 December 2012  
Cost 
evolution 
in CHF Forecasted cost 
per original 
contract  Exclude 
non-
surface 
related 
costs Additional/  
Adjusted  
costs Forecasted 
cost  Additional 
costs Forecasted 
cost   Real cost 
at year 
end Difference  
 711,271 (215,280)1 153,592  649,583  44,6922 694,670 694,275 (395)  
                  
Surface 
evolution 
in m2 Active m2 per 
original 
contract   - Additional 
surface 
area Active m2 
per 
addendum  Additional 
surface 
area   Active m2 
per 2nd 
addendum  Active 
m2 at 
year 
end   Difference  
 28,908 - 4,9973 33,905  2,323  36,228 36,228 - 
 
2.18.  The overall cost of CHF 694,275 produced a saving of 18% compared to CHF 842,781 that 
was paid to the previous provider in Y2011. The qu ality and efficiency of the new service provider 
is however yet to be assessed, this will be done under the follow-up audit of cleaning services. 
2.3  Audit of Consultants and Related Service Providers 
2.19.  The audit exercise formed part of the Y2 012 annual audit plan and it covered individuals 
and consulting firms/companies that were hired by different Divisions of the WTO to do consulting and related work from Y2009 to Y2012 as appropriate.  
2.20.   There's no WTO official definition of a consultant and therefore the type of 
agreement/contract was used as the guiding factor. Individual consultants constitute IT/computer consultants hired by ITSD and any other consultants who are hired by different Divisions of the 
WTO. The type of contract is in form of an SSA.  
2.21.   Related service providers consist of Transl ators and Interpreters hi red by LDIMD. The type 
of contract/agreement may be in form of an SSA, SSC or binding terms and conditions of 
employment regulated by a Framework Agreement. 
2.22.  Although Panelists and Experts hold SSAs, they were not covered by the audit exercise 
because they were examined comprehensively by the External Auditor during a performance audit that was carried out in Y2011. 
2.23.  Consulting firms are contracted according to the WTO procurement guidelines and they hold 
binding contracts and /or purchase orders. However firms that were contracted to do consulting work for the renovation and construction (Intra and Extra-Muros) project were excluded from the 
audit and were recommended for a separate review covering the renovation and construction 
project. 
                                               
1 Non-surface related costs in form of daily interv ention costs were remove d. This is because the 
contract was based on the surface to be cleaned as the cost driver. 
2 Due to i) increase in surface of 2,323 m2 orig inally omitted from the contract (2,284 m2 for the 
Atrium and 39 m2 for the Villa Rappard (former crèche) and other dependencies) and ii) due to  staff move 
from CDM and extra cleaning activities caused  by dust from the new construction works. 
3 These are surfaces that were originally omitted from the contract (1,377 m2 CDM cafeteria and CDM 
Roneo; 266 m2 office and meeting rooms in CWR; 3,354 m2 for SWR). 
  WT/BFA/W/300 
 
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  2.24.  The objective of the audit was mainly to assess: the practices and procedures followed by 
different Divisions of the WTO when recruiting and employing consultants and related service providers; whether there are adequate controls in the recruitment and employment process; compliance with documented guidelines; the adequacy  of such guidelines; the need for recourse to 
outside expertize especially in areas where in-house  expertize is available; test financial data for 
integrity and accuracy; verify findings of the ad  hoc procurement audit from a broader perspective 
and in general make appropriate recommendations to prevent or mitigate any identified 
shortcomings. 
2.25.  The exercise built upon areas that were ex amined during the audit of 'payroll activities' 
covering Y2007 and Y2008 which partly took into consideration the use of consultants by the WTO. 
The implementation status of relevant recommendations on consultants both open and in the 
process of being implemented were verified furthe r and moved from the Payroll audit for follow-up 
under this audit.  
2.26.  Total expenditure on individuals and firms that were hired by various Divisions of the WTO 
to do consulting and related work was CHF 12,143,917 in Y2009, CHF 12,986,852 in Y2010 and 
CHF 13,739,946 in Y2011. 
2.27.  The graph below shows an analysis of expe nditure between individuals and firms that were 
hired to do consulting and related work from Y2009 to Y2011.  
Figure 3 Consultants-Expenditure Analysis 
 
02,000,0004,000,0006,000,0008,000,00010,000,00012,000,000
Individuals  Firms
2009 9,733,846 2,410,071
2010 10,688,749 2,298,103
2011 10,524,547 3,215,3992009
20092010
20102011
2011Amount in CHF
 
 
2.28.  The significant findings indicated the following: 
a. The SSA guidelines for recruitment and employment of individual consultants were found 
to be inadequate in content. With no official definition of a consultant and no guidelines on criteria for recourse to consultants, individuals were occasionally contracted to 
perform day-to-day regular work. This poses a risk of inefficient and inappropriate use of 
human and financial resources.  
b. There is room for improvement in formulating a mechanism to systematically identify the 
specialized knowledge/expertize of consultants on a Secretariat-wide basis and matching 
it to specific needs of the Divisions. This would sidestep the widespread practice by Divisions of considering only one candidate for selection without competition, based on 
personal contacts and recommendations. 
c. It is evident that the prescribed daily fee of CHF 600 for remunerating consultants on a 
daily basis does not consider the different ty pes of consultants engaged by Divisions and WT/BFA/W/300 
 
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  the type of services that they provide. Fees  paid were therefore at times non-compliant 
with the prescribed fee and were determined at the discretion of the recruiting Divisions, based on contingent causes like available budget, which in turn dictated the type of consultant hired and the amount paid. Variations within and between Divisions in fees 
paid to consultants ranged from hourly ,daily, monthly or  lump sum fees to payments 
based on WTO salary scales for Short-Term staff.  
d. Additionally, individuals were paid total aggregate amounts in excess of CHF 50,000 for 
providing consulting services without undergoing any evident competition which exposes 
the Organization to the risk of not receiving the anticipated value for money.  
e. Non-compliance with the guidelines was also noted with Divisions paying for 'preparation 
days' which, although essential in some cases, are explicitly excluded by the guidelines. 
Similarly although consultants are not entitled to sick and annual leave some consultants 
were noted to benefit from the same. Giving benefits to some and not all consultants shows disparity in the treatment of consultants and the whole process may therefore be 
perceived as lacking transparency. 
f. The rates paid to Translators and Interpreters were compliant with prescribed rates. 
However the rates paid to the following categories could not be authenticated against 
any officially approved document: 
i. Translators with SSCs while working from home. These were paid a total of CHF 
1,602,005 in Y2009, CHF 1,768,741 in Y2010, CHF 1,700,147 in Y2011 and CHF 1,171,968 as at 30 September 2012; 
ii. Translators with SSAs. These were paid a total of CHF 2,313,626 in Y2009, CHF 
2,583,359 in Y2010, CHF 2,431,973 in Y2011 and CHF 1,329,601 as at 30 September 2012; 
iii. Typists (Text processors). These were paid a total of CHF 103,094 in Y2011 and CHF 
95,690 as at 30 September 2012. 
g. There is room for improvement in categorizing expenditure items more accurately in the 
accounts. CHF 425,195, CHF 1,040,783 and CHF 961,871 applicable to Y2009, Y2010 
and Y2011 respectively which was spent on the WTO Short-Term Staff was mis-categorized as having been spent on consultants. This could negatively impact planning and decision-making by management. 
h. Following-up on the ad hoc audit already me ntioned above, some instances were noted 
of a similar nature where consulting companie s were selected to write terms of reference 
sometimes without competition and given an additional mandate of analysing the offers 
and helping with the selection of the best vendor. The work performed was generally 
found to be satisfactory.  
i. The WTO could however benefit from efficiency gains if relevant Divisions fully utilize 
selected vendors that form part of Framew ork Agreements with the WTO. The selected 
vendors are expected to make the required services available at predetermined prices 
which were arrived at through a competitive bidding process. 
2.29.  In the Audit opinion and based on the find ings above , inadequacies in the SSA guidelines 
are a contributing factor to non-compliance with the laid down terms which, coupled with 
insufficient internal controls expose the WTO to problems of accountability, irregularities and control weaknesses in the hiring, remunerating and employment of consultants. Overcoming the 
highlighted weaknesses necessitates amending the SSA guidelines to meet the needs of the 
Divisions.  
2.30.  Benchmarking with similar organizations would also help the WTO to emulate best practices 
for recruiting consultants. WT/BFA/W/300 
 
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  2.31.   Additionally, HRD needs to take more ownership in the recruitment process of all 
consultants and related service providers in order to enhance the controls in place, promote some 
form of competition in the selection process, ensure that the rates paid are rational and be party to the signing of SSAs, SSCs and other related cont racts. The more so since HRD is charged with 
the overall responsibility of implementing strategi es and policies relating to the management of all 
human resources within the WTO. 
2.32.  The audit came up with twenty-six reco mmendations, eight of which already existed from 
the Payroll audit.  
2.33.  Twenty-four (92%) of the recommendations were found to be significant in ranking.  2.34.  As shown in Table 3 below, as at 31 December 2012, six (25%) of the significant 
recommendations are in the process of being implemented and eighteen (75%) are not yet 
implemented but there are action plans in place to ensure that corrective actions are taken.  
2.35.  By audit category, 29% of the significant recommendations are operational in nature, 50% 
compliance, 8% system-based and 13% financial. 
2.36.  Table 3 and the graph below give a summary of the significant audit recommendations, 
their implementation status as at 31 December 2012 and the audit category. 
Table 3  
CONSULTANTS AND RELATED SERVICE PROVIDERS- AUDIT OF  20 DECEMBER 2012 
TOTAL NUMBER OF ALL RECOMMENDATIONS  26 
  Implementation status as at 31.12.12 
  Closed WIP Open    
Number of recommendations - 6 20    
Total % - 23% 77%    
    
NUMBER OF SIGNIFICANT RECOMMENDATIONS   24 
       
  Implementation status as at 31.12.12 
Audit category  Closed WIP Open Total % 
Operational  - 4 3 7 29% 
Compliance - 1 11 12 50% 
System - 1 1 2 8% 
Financial  - - 3 3 13% 
Total number of significant recommendations - 6 18 24 100% 
Total %   25% 75% 100%  
Figure 4 Consultants-Summary of significant recommendations 
Closed WIP Open
Financial 0% 0% 13%
System 0% 4% 4%
Compliance 0% 4% 46%
Operational 0% 17% 13%0%10%20%30%40%50%60%70%80%
 WT/BFA/W/300 
 
- 14 - 
 
   
2.37.  As depicted above, there are no signif icant recommendations that are closed as at 31 
December 2012. However six corrective actions have been taken as at 30 April 2013 and they include: benchmarking with similar Organizations to emulate best practices in recruiting 
consultants; amending relevant SSAs  to comply with laid down gu idelines by excluding annual and 
sick leave; officially documentin g and  approving rates that are being used to pay Translators with 
SSAs, Text Processors and Translators with SSCs while working from home; putting  controls in 
place to ensure that recruiting Divisions comply  with the requirement to have the respective 
DDG/Director's approval to hire consultants.  
2.38.  Consequently as at 30 April 2013 and as indicated in Annex C, six (25%) of the significant 
recommendations are closed, five (21%) are in the process of being implemented and thirteen 
(54%) are not yet implemented. Annex E further sh ows the implementation status of the eighteen 
outstanding recommendations, the person(s) responsible for their implementation and the expected completion dates.  
2.4  Delegation of Authorit y and Responsibility Matrix 
2.39.  At the initiation of the DG, work on delegation of authority commenced in 2009 and was 
completed in Y2012. Subsequently, the delegation  of authority and responsibility matrix was 
uploaded on the WTO intranet for information an d guidance of the WTO staff in fulfilling their 
obligations. The matrix outlines the existing authority and approval levels within the WTO. 
2.40.  The document is to be read together with relevant WTO Staff Rules, Regulations, policies, 
procedures, related Administrative instructions and Memoranda and it is expected to improve the 
efficiency and effectiveness of organizational func tioning by clarifying responsibilities, expected 
accountability and enhance internal controls. 
2.41.  As stated in previous annual audit report s and in compliance with the IIA audit standards, 
the OIA will refrain from appraising the delegation  of authority matrix and its contents for some 
time for purposes of avoiding any conflict of interest and the presumption of impairment in objectivity. This is because of responsibilities undertaken by the OIA in its compilation. The 
appraisal of the matrix will be left with the External Auditor.  
2.42.  Maintenance of the matrix was handed over to HRD and includes its update on a continuous 
basis to incorporate information on new areas and future changes in authority, responsibility and approval levels. 
2.5  Follow-up Audits 
2.43.  The Internal Audit Charter requires the OIA to establish and maintain follow-up systems to 
determine whether effective remedial action has been taken to address the issues noted from 
audit engagements and to periodically report on situations where adequate and timely corrective 
action has not been achieved. For each audited activity, two follow-up audits were therefore 
conducted during the year culminating into twelve follow-up audits. This entailed carrying out 
appropriate validation procedures to check the extent to which identified deficiencies had been 
addressed . 
2.5.2  Procurement Audit 2.44.  Carried out in 2008, the audit was given pr iority ranking then because of the envisaged 
renovation of the CWR commencing in 2009 and construction works of the new WTO building all 
estimated at CHF 130 million. Hence there was need for a more streamlined and professional procurement function due to a higher volume of valuable transactions that would be processed.  
2.45.  As depicted in Table 4 below, there were thirty-six significant audit recommendations 
constituting 88% of the total recommendations.  
2.46.   Two follow-up audits were conducted in Y2012 to verify the corrective actions taken to 
rectify deficiencies that were identified in 2008. The results indicate that thirty-five (97 %) of the 
significant audit recommendations are closed as at 31 December 2012 of which corrective actions WT/BFA/W/300 
 
- 15 - 
 
  for seven (20 %) were achieved during Y2012. One (3%) significant audit recommendation is in 
the process of being implemented and there are no open recommendations. 
2.47.  By audit category, 86% of the significant audit recommendations are operational in nature, 
3% compliance and 11% system- based. 
2.48.  Table 4 and subsequent graph below give a snapshot of the significant recommendations, 
their implementation status and the type of audit category as at 31 December 2012. 
Table 4  
PROCUREMENT AUDIT OF 17 NOVEMBER 2008 
TOTAL NUMBER OF ALL RECOMMENDATIONS 41 
 Implementation status as at 31.12.12 
 Closed WIP Open  
Number of recommendations 40 1 - 
Total % 98% 2% - 
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY  
 NUMBER OF SIGNIFICANT RECOMMENDATIONS 36 
    
  Implementation status as at 31.12.12 
Audit Category Closed WIP Open Total % 
Operational  30 1 - 31 86% 
Compliance 1 - - 1 3% 
System 4 - - 4 11% 
Total number of significant recommendations 35 1 - 36 100% 
Total % 97% 3% 0% 100%     of which in Y2012   
Number of closed significant recommendations 7  
Operational  3 
System 4 
 
Figure 5 Procurement Summary of significant recommendations 
Closed WIP Open
System 11% 0% 0%
Compliance 3% 0% 0%
Operational 83% 3% 0%0%20%40%60%80%100%
 
 
2.49.  Closed recommendations  
a. Operational  
i. Significant recommendations of an operational nature that were implemented in 
Y2012 include: putting in place a process to manage the vendor database; 
sensitizing staff on relationships between vendors and employees and risks pertaining to solicitation or receipt of gifts from external sources; providing adequate storage and secure space for reproduction stock on completion of the new building to 
safeguard it from misappropriation and improve accountability. WT/BFA/W/300 
 
- 16 - 
 
  ii. Significant recommendations that were closed prior to Y2012 mainly constituted the 
following: the formation of detailed procurement guidelines and procedures to guide and manage the procurement function; establishment of a contracts committee with properly defined responsibilities to review the procurement process for contracts 
equal to or greater than CHF 50K and ensure that proposed contracts represent Best 
Value for Money and optimum terms and conditions for the WTO; improvement in the planning of projects with a reduction in urgent purchases and improved control in 
requests for waivers; improved delegation of authority; better contract management 
and custody and overall, better accountabili ty mechanisms and strengthened internal 
controls. 
b. System 
i. All significant system-based recommendations were closed in Y2012 and were 
corrected by deploying i-procurement. Th is involved the activation of system 
(Oracle) features to electronically handle purchase requisitions, approve purchase 
orders, and validate goods and services before payment. This clarified roles, 
ownership and accountability at different stages of the procurement cycle and enhanced internal controls in general.  
ii. One significant system-based recommendation was however not implemented but 
closed in Y2012 because of its wide scope and complexity. It was deemed to be more suitable for future audit. It constitutes the possibility of activating the already existing but not utilized Oracle module to control and monitor the different types of 
i n v e n t o r y / a s s e t s  h e l d  b y  d i f f e r e n t  D i v i s i o n s  o f  t h e  W T O .  I t  w i l l  f o r m  p a r t  o f  t h e  
Y2013 audit plan which takes into account the management, accountability and control of WTO fixed assets and inventory. 
c. Compliance 
The only significant corrective action of a compliance nature was realized prior to Y2012 
by instituting a process to ensure that invoices are paid within the prescribed payment 
terms. Any delays are promptly tracked.  
2.50.  Work in progress 2.51.  Only one significant audit recommendation remained outstanding as at 31 December 2012 
and it was closed during Y2013. It consists of an invoice settlement policy to document the process 
of approving and settling supplier invoices. The policy was already in draft form pending the 
deployment of i-procurement.  
2.52.  Subsequently all recommendations under procurement audit are closed as at 30 April 2013.  
2.5.3  Mission Travel  
2.53.  The nature of work carried out by the WT O necessitates a lot of travel. The audit, which 
included a benchmarking exercise with similar Orga nizations, was therefore carried out in Y2009 to 
mainly assess whether there were adequate internal controls in place to ensure economic and 
efficient use of financial resources, proper accountability and to make appropriate recommendations to mitigate any potential risks.  
2.54.  As depicted in Table 5 below, there we re twenty-one significant audit recommendations 
constituting 91% of the total recommendations.  
2.55.  Two follow-up audits were conducted in Y2012 to verify the corrective actions taken to 
rectify deficiencies that were identified in October 2009. The results indicate that fourteen (67 %) 
of the significant audit recommendations are closed as at year end, of which corrective actions for 
three (21 %) were achieved during Y2012. 33% of the significant audit recommendations are in the process of being implemented whereas there are none that are still open.  WT/BFA/W/300 
 
- 17 - 
 
  2.56.  By audit category, 52% of the significant audit recommendations are operational in nature, 
14% compliance, 24% system- based and 10% financial. 
2.57.  A summary of the significant audit recommendations, their implementation status and the 
audit category are depicted in Table 5 and subsequent graph below. 
Table 5  
AUDIT OF  MISSION TRAVEL OF 13 OCTOBER 2009 
TOTAL NUMBER OF ALL RECOMMENDATIONS  23 
  Implementation status as at 31.12.12 
  Closed WIP Open  
Number of recommendations 16 7 - 
Total % 70% 30% - 
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY  
 NUMBER OF SIGNIFICANT RECOMMENDATIONS  21 
    
  Implementation status as at 31.12.12 
Audit Category Closed WIP Open Total % 
Operational  6 5 - 11 52% 
Compliance 3 - - 3 14% 
System 3 2 - 5 24% 
Financial 2 - - 2 10% 
Total number of significant recommendations 14 7 - 21 100% 
Total % 67% 33% 0% 100%  
   
of which in Y2012   
Number of closed significant recommendations 3  
Compliance 2 
System 1 
 
Figure 6 Mission Travel-Summary of significant recommendations 
Closed WIP Open
Financial 10% 0% 0%
System 14% 10% 0%
Compliance 14% 0% 0%
Operational 29% 24% 0%0%10%20%30%40%50%60%70%
 
 
2.58.  Closed recommendations 
a. Compliance 
Significant corrective actions that were instituted in Y2012 relate to compliance with the 
requirements of the travel policy. These in clude an improvement in recovering money 
from bodies sponsoring travel of the WTO staff. A receivable account was opened for purposes of accounting for such amounts. Divisions, in collaboration with Finance 
section, are more vigilant in following-up any outstanding amounts. WT/BFA/W/300 
 
- 18 - 
 
  b. System  
Corrective actions under this category relate to the optimization of e-travel. Prior to 
Y2012 e-travel was configured to make it possible and obligatory to attach invitation letters and other relevant documents in order to enhance accountability. It was also 
configured to streamline the approval process by ensuring and making it obligatory for 
travel by all staff to be approved by the appropriate supervisor.  
c.  Others 
i. Significant corrective actions of an operational nature that have been achieved so far 
were all realized prior to Y2012 and mainly included: putting in place a policy aimed at formalizing and harmonizing expenses covered by the Organization for participants attending WTO-funded trai ning courses, seminars, symposia and 
workshops; mitigating security risks by paying allowances to participants attending 
TA activities overseas through Western Union and, in countries where this is not possible payments are made by bank tran sfer, credit card or through partner 
institutions and making direct payments to hotels for meals instead of cash being 
carried by the WTO staff. 
ii. All significant corrective actions of a financial  nature were realized prior to Y2012 and 
majorly included better categorization of the different elements constituting travel 
expenditure (DSA, airfare etc.) in the books of account for better analysis. 
2.59.  Work in progress 
a. Operational  
The significant items of an operational nature which are in the process of being 
implemented mainly revolve around the travel policy. There is an on-going review of the 
policy in order to: improve on procedures  and guidelines for the planning and 
reimbursement of business travel and rela ted expenses including DSA and terminal 
expenses; ensure better accountability; promote more efficient use of the WTO financial resources and allow for more effective expense control. The revised policy has already 
been submitted to the JAC for its consideration and comments and it is with the DG for 
further review. 
b. System 
There is work in progress to provide the OIA with a reliable tool for extracting and 
analyzing data independently and accurately. In addition, the ITTC using its own 
Programmer from E-learning is also in the process of automating participant-related documents and processes in order to streamline its activities and promote efficiency.  
2.60.  Annex F shows the seven areas that are in the process of being implemented, the persons 
responsible for their implementation and anticipated completion dates. 
2.5.4  Payroll 
2.61.  With staff costs accounting for approximately 70 per cent of WTO's expenditure for the 
audited years 2007 and 2008, the audit was carried out in Y2010 to mainly assess whether proper payroll controls, policies and procedures were in place during the implementation of the payroll 
function; assess the adequacy of IT security controls; verify compliance with any relevant 
guidelines, Staff Rules, Regulations; test payroll computations for accuracy; and make appropriate 
recommendations to prevent or mitigate any foreseeable risks. 
2.62.  Originally, there were thirty- three audit recommendations and as already mentioned, eight 
of them were re-assigned for follow-up under the audit of 'consultants and related service 
providers'. Twenty-one (84%) of the remaining audit recommendations were considered to have a significant ranking as depicted in Table 6 below.  WT/BFA/W/300 
 
- 19 - 
 
  2.63.  Two follow-up audits were conducted in Y2012 and the results as at 31 December 2012 
point to sixteen (76%) significant audit recommendations closed of which four (25%) were realized in Y2012. 24% of the significant audit recommendations are in the process of being implemented whereas there are none that are still open. 
2.64.  By audit category, 86% of the significant audit recommendations are operational in nature, 
10% system-based and 5% financial.  
2.65.   Table 6 and subsequent graph summarize the significant recommendations, their 
implementation status and the audit category as at 31 December 2012. 
Table 6  
PAYROLL AUDIT OF  28 JUNE 2010 
TOTAL NUMBER OF ALL RECOMMENDATIONS  25 
Implementation status as at 31.12.12 Closed WIP Open   
Number of recommendations 17 8 - 
Total % 68% 32% - 
 SIGNIFICANT RECOMMENDATI ONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS  21 
    
  Implementation status as at 31.12.12 
Audit Category Closed WIP Open Total % 
Operational  13 5 - 18 86% 
System 2 - - 2 10% 
Financial 1 - - 1 5% 
Total number of significant recommendations 16 5 - 21 100% 
Total % 76% 24% 0% 100%  
   
of which in Y2012  
Number of closed significant  recommendations 4  
Operational  4 
 
Figure 7 Payroll-Summary of significant recommendations 
Closed WIP Open
Financial 5% 0% 0%
System 9% 0% 0%
Operational 62% 24% 0%0%10%20%30%40%50%60%70%80%
 
 
2.66.  Closed recommendations 
a. Operational 
i. Significant corrective actions of an operat ional nature that were realized in Y2012 
include: putting in place measures to limit access to payroll and personnel data only 
to staff with a direct obligation to deal with such data; a review of access rights to the HRD archives for purposes of maintaining confidentiality of personnel WT/BFA/W/300 
 
- 20 - 
 
  information, this includes signing a confidentiality statement by HRD staff members 
that access employee information; providing a ppropriate training by ITSD to staff in 
HRD and Finance on various payroll functions in order to reinforce their ownership, accountability and management of such functions and be able to provide first level 
support on payroll related matters that were previously handled by ITSD. 
ii. Prior to Y2012, significant corrective actions of an operational nature mainly 
included; a review of access to confidential information Organization-wide 
necessitating the signing of a confidentiality statement by staff as appropriate which 
is filed with HRD; advertising vacant positions previously occupied by consultants on a long-term basis of over three years and subjecting them to competition in compliance with recommended recruitment pr ocedures; nominating focal points in 
HRD and Finance to deal with payroll issues in liaison with ITSD in order to enhance 
management, accountability and control of the payroll function; a review of the Budget and Finance functions for purposes of promoting segregation of duties and 
accountability.  
b. Others 
Prior to Y2012 the audit log ( system ) was made operational and put in use by relevant 
staff to enhance controls for detecting payroll anomalies in a more systematic, efficient 
and effective manner. Financially  there was an improvement in categorizing payroll 
related costs for better planning, analysis and decision-making. 
2.67.  Work in Progress  
2.68.  All corrective actions that are in the process of being implemented are of an operational  
nature and mainly include: sensitizing staff on the WTO's core values and ethical behaviour using E-learning as a delivery platform; compiling a handbook with guidelines for staff on how and when 
various employment contracts should be used at the WTO including the criteria for assessing the 
need for renewal of short-term contracts, acce ptable number of renewals and for purposes of 
ensuring the use of short-term contracts as intended; achieving full ownership, management and 
accountability of the payroll and personnel data by HRD ( this has been realized as at 30 April 
2013) and reviewing and limiting ITSD access rights to payroll data (also realized as at 30 April 2013, in addition closure of access rights for different categories of the WTO staff and consultants is now automated).  
2.69.   Consequently as at 30 April 2013 and as indicated in Annex C, eighteen (86%) of the 
significant recommendations are closed and three (14%) are in the process of being implemented. Annex G further shows the implementation status of the three outstanding recommendations, the 
person(s) responsible for their implementation and the expected completion dates. 
2.5.5  ITTC Administrative and Logistical Support Activities 
2.70.  The audit was carried out in Y2010 and was aimed at assessing the efficient and optimum 
allocation of the ITTC Division's budgetary, financial and human resources with a focus on 
administrative and logistical support activities. 
2.71.  As depicted in Table 7 below, there were nine significant audit recommendations 
constituting 75% of the total recommendations.  
2.72.  Two follow-up audits were conducted in Y2012 and the results as at 31 December 2012 
indicate that eight (89%) of the significant au dit recommendations have been implemented of 
which three (38%) were realized in Y2012. On e corrective action constituting 11% of the 
significant audit recommendations is in the proc ess of being implemented and there are no open 
recommendations. 
2.73.  By audit category, 67% of the significant recommendations are operational in nature, 11% 
compliance and 22% strategic.  WT/BFA/W/300 
 
- 21 - 
 
  2.74.  The audit recommendations, their implementati on status and the type of audit category at 
year end are summarized in Table 7 and subsequent graph below. 
Table 7  
AUDIT OF ITTC ADMINISTRATIVE AND LOGIST ICAL SUPPORT ACTIVITIES OF 2 DECEMBER  2010 
  
TOTAL NUMBER OF ALL RECOMMENDATIONS  12 
  Implementation status as at 31.12.12 
  Closed WIP Open   
Number of recommendations 11 1 - 
Total % 92% 8% - 
 SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS  9 
    
  Implementation status as at 31.12.12 
Audit Category Closed WIP Open Total % 
Operational  5 1 - 6 67% 
Compliance 1 - - 1 11% 
Strategic 2 - - 2 22% 
Total number of significant recommendations 8 1 - 9 100% 
Total % 89% 11% 0% 100%  
   
of which in Y2012  
Number of closed significant recommendations 3  
Operational  1 
Strategic 2 
 
Figure 8 ITTC Administrative and logistical  support activities-summary of significant 
recommendations 
Closed WIP Open
Strategic 22% 0% 0%
Compliance 11% 0% 0%
Operational 56% 11% 0%0%20%40%60%80%100%
 
 
2.75.  Closed recommendations 
a. Operational  
i. In Y2012 a restructuring of the Logistics Unit resulted in integrating all the 
administrative and logistical support activities under one Unit.  
ii. Prior to Y2012 main implementation constituted a review and control of short-term 
contracts existing in ITTC. Whereas some of the contracts were extended as needed, three short-term staff were given adequate notice to leave the WTO upon expiry of their contracts because there was no justified need to keep them on board. 
 WT/BFA/W/300 
 
- 22 - 
 
  b. Compliance  
Prior to Y2012, two Grade 6- L posts held by short-term staff were advertised and 
subjected to competition in compliance with the WTO Regulations. 
c. Strategic  
All significant recommendations of a strategic nature were implemented in Y2012. One 
post was re-allocated from Logistics unit to E-learning to enhance online training to Government officials from developing and least-developed Members and Observers on 
matters related to International trade an d WTO Agreements. Another recommendation 
concerning two posts earlier foreseen to be moved to E-learning from Logistics was closed because it was no longer relevant according to the new ITTC plan and focus.  
2.76.  Work in progress 
2.77.  Only one significant corrective action which is of an operational nature is in the process of 
being implemented. It concerns two short-term po sitions in E-Learning previously earmarked for 
termination.  With the approval of the revised E-Learning Strategy it was found necessary to 
maintain temporarily the current staff levels pending completion of the implementation of the 
revised strategy and based on available funding. Details of this outstanding recommendation can be found in Annex H including the persons respon sible for its implementation and the anticipated 
completion date. 
2.5.6  Cleaning and Maintenance Services 2.78.  With annual expenditure of more than CH F 850K in each of the audited years 2008 to 2010, 
services that were reviewed constituted cleaning , removing trash and the maintenance of the WTO 
premises. 
2.79.  The audit was carried out in Y2011 with the objective of: assessing the adequacy of the 
contract with the service provider and compliance with the terms and conditions; appraising the 
general effectiveness of internal controls inst ituted by the WTO over cleaning supplies and 
services; verifying the accuracy and validity of payments made to the provider by the WTO and 
appraising the value for money received from the services provided. 
2.80.  As shown in Table 8 below, there were twenty-four significant audit recommendations 
constituting 77% of the total recommendations.  
2.81.  It is worth noting that the previous provider had been contracted by the WTO for 
approximately thirty-two years in succession from GATT days. A re-tendering process in the third 
quarter of Y2011 resulted in the award of the cleani ng service contract to another service provider 
effective Y2012. Consequently, in addition to the audit recommendation to re-tender the contract and to incorporate adequate KPIs and relevant contractual obligations, recommendations with 
specific concern to the performance of the previous provider were closed and nineteen 
recommendations (twelve significant) with a potential influence on the new provider's activities and contract management were retained for further follow-up. Two follow-up audits were carried 
out during Y2012 to verify their implementation status.  
2.82.  As depicted in Table 8 below, five of the significant recommendations were implemented 
and closed in Y2012. Seven recommendations remain outstanding as at 31 December 2012 with five in the process of being implemented and two not yet implemented but with action plans in 
place where relevant, to ensure that corrective actions are taken. 
2.83.  By audit category 71% of the significant recommendations are operational in nature, 21% 
compliance, 4% system-based and 4% financial.  
2.84.  A summary of the recommendations, their implementation status and the type of audit 
category as at 31 December 2012 are shown in Table 8 and the graph below. WT/BFA/W/300 
 
- 23 - 
 
  Table 8  
AUDIT OF CLEANING AND MAINTENANCE SERVICES OF 30 JUNE 2011 
 TOTAL NUMBER OF ALL RECOMMENDATIONS  31 
  Implementation status as at 31.12.12 
  Closed WIP Open  
Number of recommendations 22 7 2 
Total % 71% 23% 6% 
 SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS  24 
    
  Implementation status as at 31.12.12 
 Audit Category Closed WIP Open Total % 
Operational  15 2 - 17 71% 
Compliance 1 2 2 5 21% 
System 1 - - 1 4% 
Financial  - 1 - 1 4% 
Total number of significant recommendations 17 5 2 24 100% 
Total % 71% 21% 8% 100%  
   
of which in Y2012  
Number of closed significant recommendations 5  
Category   
Operational  4  
System 1 
 
Figure 9 Cleaning and maintenance services -Summary of significant recommendations 
Closed WIP Open
Financial 0% 4% 0%
System 4% 0% 0%
Compliance 4% 8% 8%
Operational 63% 8% 0%0%10%20%30%40%50%60%70%80%
 
 
2.85.  Closed recommendations 
a. Operational  
i. Significant recommendations pertaining to the new service provider that were 
implemented in Y2012 mainly consisted of the following: a process was put in place to a have a well-planned and systematic registration of cleaners both upon entry and 
exit from the WTO premises for security and accountability purposes; controlled 
access to available storage rooms where cleaning materials are kept to avoid their wastage and misappropriation; separation of water jars and drinking cups from 
cleaning products for hygiene purposes and washing and filling water jars from 
kitchenettes under better conditions with an  option to wash the new dish-washable 
jars from the restaurant.  WT/BFA/W/300 
 
- 24 - 
 
  ii. As already indicated above, in Y2011 cleaning services were subjected to 
competition. In addition, adequate KPIs and relevant contractual obligations covering customer satisfaction, health and safety environment, service delivery, management supervision, etc. were incorporated in the contract with the new service provider to 
allow more effective supervision of the cleaners and to provide a basis for measuring 
their performance. 
b. System 
The only significant system-based corrective action was effected in Y2012. It constituted 
the activation of an online help-request system where the WTO staff could submit requests for cleaning services and give approp riate feedback on the level of satisfaction 
received.  
2.86.  Work in progress 
a. Operational  
i. There is work in progress to ensure that all the WTO surface areas to be cleaned are 
included in the contract with the service provider by way of addenda to the contract 
in order to come up with a more reliable cost. This has already been explained under the ad hoc audit above. In addition there is  work in progress to construct lockers in 
the new building to cater for adequate storage space for cleaning equipment and 
supplies and to avoid keeping them in corridors and hall ways where they portray a bad public image and are susceptible to loss and misuse.  
ii. It is worth noting that corrective actions under this category have been realized as at 
30 April 2013. 
b. Compliance  
There is good progress by the service prov ider in submitting documents within the 
contracted timeframe for example, third party insurance policy, yearly evaluation of 
KPIs, monthly quality control reports etc. Although the criteria for assessing the quality of cleaning activities was incorporated in the contract, the submitted quality control 
reports are not yet compliant with the contract requirements. They are for example not 
detailed enough making it difficult to assess and impose any applicable penalties. As at year end, also the yearly activity report was yet to be provided. 
c. Financial 
There is good progress in ensuring that payments to the service provider are well 
supported including justification for any extra costs paid. This item is to be monitored further in Y2013 for full satisfaction before closing it off. 
2.87.  Open recommendations 
The two significant recommendations th at are still open are both of a compliance  nature and 
include:  
i. Compliance with a provision in the contract to deduct the cost of any freed-up space 
including vacant offices unoccupied for long periods in order to make savings. The responsible Division cited difficulty in im plementation which might entail amending 
the contract if justified.  
ii. Although the contract talks about submission of records on the criminal status of 
cleaners by the service provider, there's need to determine a frequency of submission which is not burdensome on the service provider but also informative on 
a timely basis on the part of the WTO.  WT/BFA/W/300 
 
- 25 - 
 
  2.88.  Considering corrective actions taken during Y2013 and as indicated in Annex C, nineteen 
(79%) of the significant recommendations are closed as at 30 April 2013, three (13%) are in the process of being implemented and two (8%) are yet to be implemented. The implementation 
status of the five outstanding recommendations, the person(s) responsible for their 
implementation and the expected completion dates are outlined in Annex I. 
2.5.7  Security and Safety Activities 2.89.  The contracted services include access co ntrol, interventions and surveillance of the WTO 
premises and car parks. CHF 4,253,890 was paid fo r security and safety services for Y2009 and 
CHF 3,900,471 for Y2010. 
2.90.  The objectives of the audit were to assess and evaluate: the adequacy of the contract and 
compliance with the terms and conditions by both th e security provider and by the WTO; efficiency 
and effectiveness with which security and safety operations are carried out; internal controls in 
place; integrity and reliability of various documentation and to the extent possible assess the value for money received from the services provided. Th e audit also verified the recording, control, 
safeguard, existence and accountability of security and safety inventory and equipment. 
2.91.  Additionally, the audit looked into and invest igated current procedures, as well as the extent 
and manner in which video surveillance cameras and other tracking and investigative devices were 
being used at the request of the DG. A complementary audit report with the findings was 
submitted to the DG. Any significant recommendations notably on video surveillance and investigation guidelines were however incorporated in the audit on security and safety activities. 
2.92.  According to Table 9 below, twenty-one audit recommendations were ranked significant 
constituting 88% of the total recommendations. 
2.93.  Nineteen (90%) of the significant audit recommendations are implemented and closed as at 
31 December 2012 and they were all realized during Y2012. 10% of the recommendations are in 
the process of being implemented and there are no open recommendations. 
2.94.  By audit category, 57% of the significant audit recommendations are operational in nature, 
38% compliance and 5% system-based.  
2.95.  A summary of the recommendations, their impl ementation status and audit category at year 
end are shown in Table 9 and the graph below. 
Table 9  
AUDIT OF SECURITY AND SAFETY ACTIVITIES OF 11 NOVEMBER 201 1 
TOTAL NUMBER OF ALL RECOMMENDATIONS  24 
  Implementation status as at 31.12.12 
  Closed WIP Open     
Number of recommendations 21 3 -     
Total % 88% 12% 0%     
 SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS  21 
  Implementation status as at 31.12.12 
Audit category Closed WIP Open Total % 
Operational  11 1 - 12 57% 
Compliance 7 1 - 8 38% 
System 1 - - 1 5% 
Total number of significant recommendations 19 2 - 21 100% 
Total % 90% 10% 0% 100%  
of which in Y2012   
Number of closed significant recommendations 19         
Operational  11         
Compliance 7   
System 1 WT/BFA/W/300 
 
- 26 - 
 
  Figure 10 Security and Safety activities -Summary of significant recommendations 
Closed WIP Open
System 5% 0% 0%
Compliance 33% 5% 0%
Operational 52% 5% 0%0%10%20%30%40%50%60%70%80%90%100%
 
 
2.96.  Closed recommendations 
a. Operational 
i. All the significant recommendations of an operational nature were implemented 
during Y2012 and included: enhanced and mo re vigilant supervision and monitoring 
of security guards by both the service pr ovider and the WTO as evidenced by regular 
quality control reports; better planning of security and safety activities; validated, updated and consistent information sent to the WTO by the service provider for 
example daily activity reports, dashboard of contracted hours, monthly summary 
reports etc.; overtime worked is properly authorized and documented according to 
specific steps that have been laid down; a validation process was instituted to consistently match invoices against supporting documents by both the service 
provider and the WTO to ensure that payment is made for actual services received 
and avoid overpayments and/or underpayments; security inventory/equipment was relocated to another store that is not prone to flooding and generally according to 
available documents, there is improvement in prioritization and better efficient use 
and allocation of security and safety resources. 
ii. Three recommendations of an operational nature pertaining to security and safety 
inventory/equipment were closed and registered for consideration under the Y2013 
audit plan where the WTO inventory and assets will be audited from a global 
perspective. They include reconciling the security and safety inventory/equipment 
register with the main WTO inventory database kept by AGSD, recording all omitted 
items including video cameras for proper control and accountability and improving 
the knowledge base of the person in charge of inputting data in the register. 
b. Compliance 
Similarly all the significant recommendations of a compliance nature were implemented 
during Y2012 to comply with the terms and conditions of contract and they included: filing of documents and required informatio n by the service provider for example third 
party insurance, attestation of medical status of the guards and certification of their 
skills/work experience; signing of a confiden tiality statement by all security guards; 
annual assessment of the performance of the service provider by the WTO to ensure 
good value for money from the services provided; imposing penalties for failure to meet 
recommended KPIs and recovery of penalt ies in arrears for non-compliance with 
contracted KPIs. 
c. System 
One system based significant item was closed for consideration under the Y2013 audit 
plan. It consists of improving the inventory software that is used by the WTO Security and Safety Section for purposes of promoting accountability.  WT/BFA/W/300 
 
- 27 - 
 
  2.97.  Work in progress 
a. Operational  
There is work in progress mainly to put a staff notice on the intranet/extranet on video 
surveillance for WTO staff and visitors for information purposes and transparency, it is in the 
process of being transmitted into the thr ee WTO languages. Work on a manual on 
investigation activities is also in progress.  
b. Compliance 
There is work in progress to provide the contracted training to the security guards. Whereas 
the service provider is complying with the re quirement 100%, as at 31 December 2012, the 
WTO had only provided 27% of the required training due to the heavy workload with the renovation works and the Extra-Muros project.  
2.98.  The person(s) responsible for implementing the two recommendations that are still 
outstanding and the anticipated completion dates can be consulted in Annex J. 
3  EXTERNAL REVIEW 
3.1.  The OIA underwent a review of its operations  by the External Auditor during the last quarter 
of the year which also involved assessing compliance with International Auditing Standards. 
3.2.  Results of the review identified opportunit ies for improvement in the OIA including; amending 
the Internal Audit charter to give jurisdiction to a committee of the Organization (probably CBFA) 
to monitor internal audit matters; the establishment and revision of annual audit plans by reference to the risk management framework of the WTO and in coordination with the External Auditor; making long-term audit plans and officially revising them, if necessary; specifying in the 
annual audit plans the anticipated time duration fo r each audit activity and the planned completion 
date; establishing a quality control and improvement program including periodic internal and external evaluations to cover all aspects of the internal audit activity; establishing an annual 
training plan and publishing a list of courses actually followed each year by the auditors. 
3.3.  The OIA notes that in order to have mo re reliable and informative risk assessments and 
therefore long-term audit plans, reference to the risk management framework of the WTO can only 
be made when it is fully implemented and incorporated in all activities of the WTO. 
3.4.  The OIA will however initiate corrective actions commencing Y2013 as appropriate. 4  THE OIA STAFFING  4.1.  Following a competition exercise in Y2011,  an Auditor, who is both a Certified Internal 
Auditor (CIA) and a Chartered Accountant (ACCA), joined the OIA effective February 2012. The 
OIA is therefore composed of two staff, the Head of the OIA and the recruited Auditor. 
4.2.  Substantial time was spent by the Head of OIA in Y2012 on inducting the new staff into the 
operations of the OIA and acquainting him to various audit files and documentation. 
4.3.  The term of office for the Head of the OI A is due to expire at the end of March 2014. A 
competitive process to select a new Head of the OIA is anticipated during the last half of Y2013. 
5  PERSONNEL DEVELOPMENT  
5.1.  During Y2012, staff of the OIA took part in various audit workshops, round tables and 
conferences to share audit experiences and best pr actices, for purposes of networking and as a 
means of Continuing Professional Development (CPD ) as required by different Professional bodies 
to which they are affiliated. They also undertook in-house training in relevant areas to help in their 
day to-day-work. WT/BFA/W/300 
 
- 28 - 
 
  5.2.  The Head of the OIA achieved a Certification in Risk Management Assurance (CRMA) by the 
IIA and qualified for Certification as an Inform ation Systems Auditor (CISA), areas deemed vital 
and relevant in carrying out audit work. 
5.3.  The Head of the OIA was also invited to be a guest presenter on 'marketing and 
communicating the work of Internal Audit' at th e annual audit conference of Zimbabwe IIA Chapter 
in September. This provided the opportunity to network and share experiences with other Auditors.  
6  AUDIT PLAN FOR Y2013 
6.1.   The OIA will carry out the following during Y2013: 
a. At the request of the DG and according to the IA charter no. E6 (i), look at the 
management, control, accountability, safeguard and existence of fixed assets and 
inventory (consumables) in the WTO. This is anticipated to commence in the third 
quarter of Y2013; 
b. Develop a structured QAIP (Quality Assurance and Improvement Program) that covers 
all aspects of the internal audit activity as required by Audit Standard 1300. This will 
entail: assessing OIA activities against the IPPF (International Professional Practices Framework) of the IIA; automating the existi ng satisfaction survey; standardizing audit 
working papers; amending the OIA guidelines, among others. Recommendations of the 
External Auditor in this regard will also be taken into consideration. This will be continuous during Y2013; 
c. Carry out follow-up audits to ascertain the implementation status of outstanding 
corrective actions pertaining to various audits notably; mission travel; payroll; ITTC 
administrative and logistical support activities; cleaning and maintenance services; security and safety activities and consultants and related service providers. This will take 
place during the second and fourth quarter of Y2013;  
d. Work on any ad hoc assignments by management. 
6.2.  However, bearing in mind that there will  be a change in management in Y2013, the above 
priorities may be reviewed afte r the arrival of new management. 
7  CONCLUSION 7.1.  The audit function has grown and it is now reasonably well established within the WTO. 
During the year, the OIA continued to receive th e necessary support from senior management and 
co-operation from the auditees. 
7.2.  The OIA will continue to exercise both independence and objectivity in performing its work. WT/BFA/W/300 
 
- 29 - 
 
  Annex A Summary Implementation Status of Significant Recommendations as at 
31 December 2012 
 
AUDIT RECOMMENDATIONS-SUMMARY 
Audit Activity  Audit 
year Total 
number  
Significant % 
Significant     
Procurement 2008 41 36 88%     
Mission travel 2009 23 21 91%     
Payroll*  2010 25 21 84%     
ITTC Administrative an d logistical support 
activities 2010 12 9 75%     
Cleaning and maintenance services 2011 31 24 77%     
Security and safety activities 2011 24 21 88%     
Consultants and related service providers 2012 26 24 92%     
Total    182 156 86%     
 
SIGNIFICANT RECOMMENDATIONS 
    Implementation status as at 31.12.12 
Audit Activity   
Closed  
WIP  
Open  
Total   
Procurement   35 1 - 36 
Mission travel   14 7 - 21 
Payroll    16 5 - 21 
ITTC Administrative an d logistical support 
activities   8 1 - 9 
Cleaning and maintenance services   17 5 2 24 
Security and safety activities   19 2 - 21 
Consultants and related service providers   - 6 18 24 
Total     109 27 20 156 
% of total significant recommendations   70% 17% 13% 100% 
 
Audit Category     
Closed  
WIP  
Open  
Total  
%   
Operational    80 19 3 102 65% 
Compliance   13 4 13 30 19% 
System   11 3 1 15 10% 
Financial    3 1 3 7 4% 
Strategic   2 - - 2 1% 
Total    109 27 20 156 100% 
                
of which in Y2012             
Number of closed recommendations 41         
          % 
Operational  23       56% 
Compliance 9       22% 
System 7       17% 
Strategic 2       5% 
%   38%     
* Original payroll recommendations we re 33 (thirty three), eight (2 'op en' and 6 'WIP') of which were 
transferred to the audit of 'consultants and related se rvice providers' for follow up of corrective action. 
 WT/BFA/W/300 
 
- 30 - 
 
  Annex B Summary Implementation Status of  All Audits as at 31 December 2012 
Number of 
recommendations Follow-up 
date Closed4 WIP5 Open6 
41 Procurement Audit- Report of 17 November 2008 
31.07.2009 27% 51% 22% 
30.04.2010 57% 29% 14% 
31.12.2010 80% 9% 11% 
30.09.2011 84% 13% 3% 
31.12.2011 86% 11% 3% 
30.06.2012 86% 9% 5% 
31.12.2012 98% 2% 0% 
23 Mission Travel Audit - Report of 13 October 2009  
30.06.2010 17% 39% 44% 
31.12.2010 31% 52% 17% 
15.07.2011 57% 39% 4% 
31.12.2011 57% 39% 4% 
30.06.2012 61% 39% 0% 
31.12.2012 70% 30% 0% 
25 Payroll Audit- Report of 28 June 2010  
31.12.2010 6% 61% 33% 
31.08.2011 27% 55% 18% 
31.12.2011 39% 52% 9% 
15.07.2012 46% 48% 6% 
31.12.2012 68% 32% 0% 
12 Audit of ITTC administrative and logist ical support activities - Report of 
2 December 2010  
31.07.2011 8% 50% 42% 
31.12.2011 50% 17% 33% 
30.06.2012 92% 0% 8% 
31.12.2012 92% 8% 0% 
31 Audit of cleaning and maintenance services- Report of 30 June 2011  
31.12.2011 37% 37% 26% 
15.07.2012 55% 42% 3% 
31.12.2012 71% 23% 6% 
24 Audit of security and safety activities - Report of 11 November 2011  
30.06.2012 38% 50% 12% 
31.12.2012 88% 12% 0% 
26 Audit of Consultants and related service providers - Report of 
20 December 2012  
N/A 0% 23% 77% 
Grand 
Total 182  
 
                                               
4 Refers to recommendations that have been implemented 
5 Refers to progress being made  in taki ng remedial action (Work in progress) 
6 Refers to recommendations with no  remedial action taken as yet bu t with proposed remedial action 
plans to address the recommendations WT/BFA/W/300 
 
- 31 - 
 
   Annex C Summary Implementation Status of Significant Recommendations as at 
30 April 2013 
ALL AUDIT RECOMMENDATIONS- SUMMARY 
Audit activity Audit 
year Total 
number  
Significant % 
Significant     
Procurement 2008 41 36 88%     
Mission travel 2009 23 21 91%     
Payroll  2010 25 21 84%     
ITTC Administrative an d logistical support 
activities 2010 12 9 75%     
Cleaning and maintenance services 2011 31 24 77%     
Security and safety activities 2011 24 21 88%     
Consultants and related service providers 2012 26 24 92%     
Total    182 156 86%     
 
SIGNIFICANT RECOMMENDATIONS 
 Audit Activity Implementation status as at 30.04.13 
 
Closed  
WIP  
Open  
Total   
Procurement   36 - - 36 
Mission travel   14 7 - 21 
Payroll    18 3 - 21 
ITTC Administrative an d logistical support 
activities   8 1 - 9 
Cleaning and maintenance services   19 3 2 24 
Security and safety activities   19 2 - 21 
Consultants and related service providers   6 5 13 24 
Total     120 21 15 156 
% of total significant recommendations   77% 13% 10% 100% 
 
Audit Category     
Closed  
WIP  
Open  
Total  
%   
Operational    88 12 2 102 65% 
Compliance   16 5 9 30 19% 
System   11 3 1 15 10% 
Financial    3 1 3 7 4% 
Strategic   2 - - 2 1% 
Total    120 21 15 156   
                
 
  
  WT/BFA/W/300  
 
- 32 - Annex D Audit Lifecycle 
 
 
  WT/BFA/W/300  
 
- 33 - Annex E Consultants and Related Service Providers- Implementation Status of Outstanding Significant Recommendations 
N.B. existing recommendations from the 'payroll audit' are in bold 
Significant Audit recommendation and 
Audit category (December 2012) Implementation status as reported by the 
implementing Division as at 31 December 2012 
+updates Audit implementation status and OIA 
comments as at 31 December 2012+updates 
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Comments 
MANAGEMENT AND AGSD      
1. Consider reviewing Financial Rule 
10.3(c) to apply procurement guidelines to 
individuals supplying services above the 
thresh hold of CHF 50K to ensure value for 
money for the WTO. Operational To discuss with relevant stakeholders 
and come up with a position Tristan Bauswein 
September 2013 Open To be reviewed in 2013. 
 
HUMAN RESOURCES DIVISION      
      
2. Understand the need for 
consultants by the di fferent Divisions. 
Review the recruitment process and amend guidelines in consultation with 
Legal Counsel and re cruiting Divisions 
in order to streamline the process, 
strengthen the controls in place and meet the needs of the Divisions.   Operational Amended Guidelines will be available in 
the second quarter of 2013.  Bernie Sheehan 
Second quarter of 2013 WIP 
Work done so far on SSA guidelines 
was submitted to Internal Audit. To monitor progress, an d implementation 
in 2013.  
3. Facilitate, monitor, control and 
evaluate the use of consultants within 
the WTO by establishing a central 
database of pre-qualified consultants 
with assistance from ITSD and in 
consultation with the Divisions.  System HRD has identified a process within the 
existing e-Recruitment system where a 
roster / pool system will be created for 
those high turnover and high-demand 
positions.  Bernie Sheehan 
Sept 2013 WIP Preliminary tracking of consultants by 
HRD in progress according to 
documents submitted by HRD and 
waiting for Informatics (ITSD) to get 
the reports ready in Oracle.  
4. Avoid hiring consultants to do support-
related and regular work by utilizing staff in other Divisions or by giving the right type of contract if justified e.g. Short-Term contract .  Compliance All requests are being reviewed by 
HRD and support on issuing proper contract (either SSA or short-term is being provided). In addition, a management guideline document (hand book) is being developed and will be available in the second quarter of 2013. Bernie Sheehan 
Second quarter of 2013 WIP 
Progress noted, to monitor further in 
2013. 
5. Take more ownershi p in the recruitment 
process of individual consultants and 
related service providers by promoting 
some form of competition in the process of Operational This is part of the official process and 
will be monitored and enforced by 
HRD. Bernie Sheehan 
Sept 2013 Open To be verified further in 2013.  
  WT/BFA/W/300  
 
- 34 - selecting consultants, ensuring that the 
rates paid are rational and signing off all 
contracts for consultants, Translators and 
Interpreters and approving entitlements 
awarded.  
6. All SSAs entered into with consultants 
should be signed by both the WTO and the consultants.  Compliance This is part of the official process and 
will be monitored and enforced by HRD.  Bernie Sheehan 
Second quarter 2013 Open 
For further follow-up in 2013.  
7. Use companies that are part of the 
Framework Agreement or request the 
Contracts Committe e to approve the 
inclusion of more companies in order to 
take advantage of the intended efficiency 
gains.  Compliance This is part of the procurement process 
that will be followed by HRD. Monica Lezama 
June 2013 Open For further review in 2013. 
8. Take the leading role in controlling 
and managing the movement and remuneration of consultants and other staff between different contracts of employment to ensure compliance with the WTO recruitment guidelines and the required competition for employment.   Operational HRD continues to monitor this 
movement and assists Directors and supervisors on the appropriate uses of SSA or short-term. Bernie Sheehan 
Second quarter 2013 WIP 
Good progress noted in controlling the 
movement of staff between different 
contracts. To monitor further in 2013 and close when updated SSA guidelines are approved and implemented and the remuneration of consultants is regulated. 
9. Put controls in place to ensure that 
all Divisions comply with laid down 
SSA guidelines for engaging 
consultants.  Compliance New guidelines are being developed 
and will be ready for approval in the 
second quarter of 2013.  Bernie Sheehan 
Second quarter of 
2013 WIP To be verified in 2013. 
PROCUREMENT       
10. With the assistance of the Director 
AGSD, ensure that companies including 
one-man companies are consistently 
subjected to the procurement process and 
shouldn’t be awarded SSAs.  Compliance Procurement has no visibility of the 
contracts established by the Divisions 
without consulting us first. 
Procurement should be involved at the 
beginning of the pr ocess in due time 
(in other words, we need a good 
planning to put in place our 
competitive methods to ensure Best 
Value for Money).  Alessandra  
Caratozzolo 
June 2013  Open Feedback noted, however Audit 
advised that with the assistance of the 
Director of AGSD, Divisions should be 
informed in advance of the 
requirement to consistently subject all 
companies to the procurement 
process e.g. through a memo. 
 
For further review during 2013. 
AGSD, BUDGET AND FINANCE      
11. Finance should not make payment to a 
consultant if there is no copy of the 
contract duly signed  by both parties.  Compliance  Accounting operations Unit has 
enhanced the quality of control to 
make payment to a consultant only 
when there is a copy of the contract 
duly signed by both parties. Tristan Bauswein 
June 2013  Open To be verified in 2013. 
12. Review cost categories during 
preparation of Annual accounts to reflect 
the correct expenditure. Financial The implementation in 2012 of IPSAS 
has changed the account presentation for these accounts. The presentation of Tristan Bauswein 
Dec.2013 Open 
To review in 2013.  
  WT/BFA/W/300  
 
- 35 - the budget will be adjusted in 2014 for 
this type of expenditure.  
13. Enhance controls to monitor the 
posting of data in Oracle in order to 
eliminate mis-post ings and ensure 
consistent and valid categorization of 
postings . Financial Accounting controls have been 
enhanced through the implementation 
of invoice workflow approval. Tristan Bauswein 
June 2013 Open To be verified in 2013. 
14. Improve the chart of accounts field 
combination in order to identify travel expenses by contract type (Regular/Fixed term, Short-term, Consultant etc.) as is the case for Panelists and to aid decision-making by management.   Financial  "SSAs" will be  incorporated in the 
invoice description for each relevant record in Oracle hence the extraction with Qlikview will be simple and fast. Tristan Bauswein 
June 2013 Open 
To review in 2013. 
      
INFORMATICS (ITSD)       
15. Create a central register to keep 
track of consultants, Panelists and 
Appellate body members employed by 
the WTO.   System Other priorities have postponed the 
implementation of this project. The 
plan is to start the implementation 
after the Job Profile project is finished.  Sara Thizy Nilsson  
Dependant on Job 
Profile project. Open Internal Audit to monitor progress.  
ALL DIVISIONS       
16. Award SSAs to individual consultants 
and subject consulting companies 
including one-man companies to the 
procurement process.  Compliance    Open  
17. SSAs and any other contracts entered 
into with consultants should be signed by 
both the Divisions and the consultants.  Compliance    Open  
18. Comply with the SSA guidelines 
for consultants after they have been 
reviewed and approved by 
management.   Compliance   Open  SSA guidelines are under review. To 
verify compliance after review, 
approval and implementation of 
amended guidelines. 
  
  WT/BFA/W/300  
 
- 36 - Annex F Mission Travel - Implem entation Status of Outstanding Significant Recommendations 
Significant Audit recommenda tion and Audit category 
(October 2009) Implementation status as reported by the 
implementing Division as at 31 December 2012 
+updates Audit implementation status and OIA 
C o m m e n t s  a s  a t  3 1  D e c e m b e r  2 0 1 2  
+updates 
Audit recommendation Audit 
category Status update Person responsible 
+ expected 
completion date Status Comments 
DG AND MANAGEMENT       
1. Decide DSA treatment- whether 
reimbursement should be based on actual 
cost 100% with supporting receipts, 
partial cost, that is, cost of the hotel + 
50% DSA or consider the DSA as given, to 
be a lump sum to cover all expenditure 
liable to be incurred by officials on an 
official journey. Operational Part of the amended travel policy that 
is under review.  Tristan Bauswein 
30.06.13  WIP Verified that the JAC reviewed the 
amended policy. Its 
recommendations were submitted to 
the DG who is reviewing them.  
ADMINISTRATION AND GENERAL 
SERVICES + BUDGET AND FINANCE       
2. Reimburse terminal  expenses based on 
receipts up to a specified maximum 
amount to be agreed. Operational Part of the amended travel policy that 
is under review. Tristan Bauswein 
30.06.13 WIP JAC recommendations submitted to 
the DG, undergoing review by the 
DG. 
3. Review and amend the admin. 
memorandum (policy guidelines) to 
include the following:  
- Prov. 41 - To debi t the receivable 
account and not budget account;  
- Prov. 41- To include invoicing of 
outside financing bo dies by Finance; 
- Prov. 6 - Travel requests for Directors 
to be approved by respective DDGs 
and those of DDGs to be approved by DG's office; 
- Prov. 6 - To include requirement to 
attach invitation letters where 
applicable; 
- Prov. 31 to incorporate all applicable 
DSA rates including Appellate body 
members, Panellists, Consultants as appropriate; 
- To specify all the different categories Operational  Tristan Bauswein 
30.06.13 WIP 
Progress on revised Travel policy 
noted as explained above.   
  WT/BFA/W/300  
 
- 37 - Significant Audit recommenda tion and Audit category 
(October 2009) Implementation status as reported by the 
implementing Division as at 31 December 2012 
+updates Audit implementation status and OIA 
C o m m e n t s  a s  a t  3 1  D e c e m b e r  2 0 1 2  
+updates 
Audit recommendation Audit 
category Status update Person responsible 
+ expected 
completion date Status Comments 
of officials to whom the Memorandum 
is applicable; 
- A documented criteria for evaluating 
all forms of mission travel under the 
regular budget e.g. business case or summary mission repo rt upon return; 
- A consistent and clear definition of the 
‘necessary documents’ to be attached 
to travel claims including the purpose of each document;  
- A more detailed breakdown of the 
DSA components e.g. 15% per meal 
etc. 
- Clarify Management's agreed decision 
on DSA accountability.  
ITSD       
4. Provide Internal Audit with a tool for 
extracting and analysin g different types of 
data independently and accurately. System  Perreard Philippe 
30.06.13  WIP Three options were proposed by the 
ITSD: 1) Improve the software in use (Qlikview) with the likely involvement of a consultant; 2) Purchase an ad hoc Audit software such as IDEA or ACL; 
3) Create a query list useful for the 
audit with a likely involvement of a consultant. ITSD is to compare in financial terms the three options and make a proposition to the OIA. 
ITTC      
5. In collaboration with Budget and 
Finance Section, agree for approval, DSA rates and other entitlements applicable to participants and outside consultants. Incorporate in practical guide. Operational  Samer Seif El 
Yazal 30.06.13  WIP 
Draft updated practical guide seen 
with new policy incorporated and pending final approval by the respective DDG. To close observation when the updated practical guide is uploaded on the intranet for consultation by staff.   
  WT/BFA/W/300  
 
- 38 - Significant Audit recommenda tion and Audit category 
(October 2009) Implementation status as reported by the 
implementing Division as at 31 December 2012 
+updates Audit implementation status and OIA 
C o m m e n t s  a s  a t  3 1  D e c e m b e r  2 0 1 2  
+updates 
Audit recommendation Audit 
category Status update Person responsible 
+ expected 
completion date Status Comments 
 
6. With the assistance of ITSD, automate 
the requisition and a pproval process of 
logistics activities in  order to reduce on 
the processing time, minimise the printing 
of hard copies and help streamline 
logistics activities.  System  
 RAR and National Request for TA 
activities awaiting appropriate 
approval, development of BTOR to 
commence February 2013.  Isabelle Celestin-
Champlong 
30.06.13 WIP Progress noted. Audit to continue 
monitoring. 
 
 
ALL DIVISIONS      
7. All employees travelling on mission 
should attach original boarding passes and 
original hotel receipts to travel claims. Operational Finance reminds staff of the 
requirement to attach boarding passes 
and hotel receipts to travel claims. All staff   WIP Progress on Travel policy noted. 
Internal Audit to verify travel claims 
and relevant attachments 
comprehensively when amended 
travel policy is approved and in use. 
  
  WT/BFA/W/300  
 
- 39 - Annex G Payroll Audit - Implementation Status  of Outstanding Significant Recommendations 
Significant Audit recommendation and Audit category 
(June 2010) Implementation status as reported by the 
implementing Division as at 31 December 2012+updates Audit implementation status and OIA 
comments as at 31 December 2012 
+updates 
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion date Status Comments 
HUMAN RESOURCES DIVISION       
      
1. Organise a training/awareness on 
"ethics" to address the treatment of sensitive and confidential information. Operational Document on WTO values and ethical 
behaviour at the WTO was published and training sessions started along with supervisory skills workshops.   
E-learning will be used as a delivery 
platform and HRD is awaiting approval from Contracts Commit tee to undertake 
work with recommended provider.  Mira Bacelj 
July 2013 WIP 
To monitor progress on training 
through E-learning in 2013.  
2. Review the guidelines for short-term 
contracts to determine the criteria for 
assessing the need for renewal and 
maximum acceptable number of renewals 
in order to promote the use of short-term 
contracts as intended. Operational Short-term guidelines continue to be 
followed and will be released in a 
handbook for Managers shortly (in line 
with the consultant audit) to show when 
and how various staff categories should 
be used at the WTO).  Bernie Sheehan 
Quarter 2 (2013) WIP An audit review indicated that 
some short–term contracts were 
extended beyond the agreed 
timeline to cater fo r existing needs. 
To monitor further in 2013 when 
the guidelines are released in order 
to assess compliance. 
ITSD       
3. Release full ownership, management 
and accountability of the HRMS and payroll 
data to HRD and Payroll Unit (Finance). 
Only enable, support and fix technical 
issues. Operational Training of HRD users was done end of 
2012. Integration of new populations 
(interns and project employees still 
needs to be completed by ITSD). Sara Thizy Nilsson  
End May 2013 
 WIP ITSD comments noted for  
further follow- up in 2013. 
  
  WT/BFA/W/300  
 
- 40 - Annex H ITTC Administrative and Logistical  Support Activities-Implementation Status of Outstanding Significant Recommendations 
Significant Audit recommendation and Audit 
category (December 2010) Implementation status as reported by the implementing 
Division as at 31 December 2012 Implementation status and OIA comments as at 
31 December 2012 
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit comments 
HUMAN RESOURCES DIVISION      
Three Short term contracts in E-learning 
to be extended until end of July 2011. 
 Operational  
 One of the holders successfully competed 
for a fixed term contract since April 
2012. 
 
Contracts of the remaining two extended 
until June 2013. With the approval of the 
E-learning strategy, the staffing levels 
are to be maintained temporarily pending 
completion of the implementation of the 
revised strategy and based on available 
funding. 
Possibility of project based short-term 
contracts also under consideration. Bridget Chilala 
and Mira Bacelj 
by July 2013 WIP To re-assess situation in July 2013 
upon expiry of the current short-term 
contracts.  
 
However, in case of project based 
short-term contracts, Audit advises that 
ST04.2 which states that 'contracts 
shall be of less than 12 months’ 
duration for any one contract' should 
be reviewed/ amended to incorporate 
project based ST contracts which are of 
longer duration. 
  
  WT/BFA/W/300  
 
- 41 - Annex I Cleaning and Maintenance Serv ices - Implementation Status of Outstanding Significant Recommendations 
Significant Audit recommendation and Audit 
category (June 2011) Implementation status as reported by the implementing 
Division as at 31 December 2012 +updates Implementation status and OIA comments as at 
31 December 2012 +updates 
PROCUREMENT SECTION      
1. Review contract to cater for the 
frequency in submission of the status of 
criminal records for TopNet staff to a 
reasonable level.  
 Operational  Frequency of submission every 3 months. 
Request from TopNet for every 6 months 
initially and yearly thereafter. To be 
discussed with Security & Safety Section.   
 Yannick Levrat / 
Alessandra 
Caratozzolo 
July 2013  OPEN To close observation when article 5.6 is 
modified to clearly define the frequency 
of submission. 
 
2. Deduct the cost of any freed-up space 
due to the on-going renovation/expansion works or freed-up space due to vacant offices or those that are unoccupied for long periods of time in order to make savings for the WTO.  Operational Very difficult to implement as no timely 
information regarding staff absences received, and complicated by double or current multiple oc cupancy offices. 
Mechanism still to be reviewed Proposing to remove from contract.  
 Alessandra 
Caratozzolo  July 2013  OPEN 
 Freed-up space due to the on-going 
renovation/expansion works was not invoiced according to audit verification. However, any modification in terms of unoccupied offices due to staff absence, if justified, should be reflected in Article 15 of the contract with TopNet  To be monitored during follow-up Audits in 2013. 
FACILITIES MANAGEMENT SECTION 
(FMS)      
3. Ensure that all documents submitted 
by TopNet are up to date and submitted 
within the contracted timeframe.  Compliance  TopNet has been requested to provide an 
annual report. This report should be 
provided by the end of January 2013. In addition, a copy of the quality report will be given to Internal Audit. Yannick Levrat / 
Philippe 
Gualtieri July 2013  WIP 
  Yearly evaluation of KPIs (art. 26.2) 
was provided by TopNet in the format 
foreseen in Annex 1 of the contract. 
  Yearly activity report (Art. 14.3) not yet provided.   Art. 11.2 of the contract not complied with, that is, a monthly report to be submitted by the fifth of every month concerning the hours spent on WTO premises by each cleaner.  Quality reports submitted but information provided not useful in assessing the quality of service. An improvement of the quality reports is 
recommended . These will be monitored 
in 2013 under item no.4 below.    
  WT/BFA/W/300  
 
- 42 - 4. Together with TopNet determine the 
criteria to be used in assessing the 
quality of cleaning activities. Quality 
assessment should be done in the 
presence of a WTO staff and the report 
should be signed by all those who carry 
out the assessment. 
 Compliance  A quality control has been put in place 
with an average of 100 offices checked 
every month. This quality control is both 
executed by TopNet and the WTO 
contract manager. Yannick Levrat / 
Philippe 
Gualtieri 
July 2013 WIP 
 The frequency and criteria to be used in 
assessing the quality of cleaning 
services was incorporated in the 
contract with TopNet, Article 14.3 and 
Article 26.  
 
However quality controls performed by 
WTO and TopNet not compliant with 
contract requirements and not signed 
off.  
 
To review in 2013.  
5. Ensure that all payments to the 
service provider including any deductions are properly supported in line with good practice.  
 Financial A copy of the invoices will be given to 
Internal Audit. Yannick Levrat / 
Philippe Gualtieri July 2013  WIP 
 OIA verified the invoices from TopNet 
for the period January - December 2012.   Surfaces cleaned were compliant with those indicated in the contract and amendments to the contract.  Supporting evidence for extra costs charged was attached to the invoices as well as for the ordered consumable goods.  However some deductions per invoices of February, March and May 2012 were 
not supported and the December 2012 
invoice contained an overpayment, though immaterial.  To close after further follow up to ensure that future payments are well supported and accurate. 
  
  WT/BFA/W/300  
 
- 43 - Annex J Security and Safety Activiti es - Implementation Status of Outs tanding Significant Recommendations 
Significant Audit Recommendation and Audit category 
(November 2011) Implementation status as reported by the 
implementing Division as at 31 December 2012   
+ updates Audit implementation status and OIA 
comments as at 31 December 2012+updates 
Audit recommendation 
 Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit comments 
SECURITY SECTION       
1. Together with Protectas:-Provide the 
recommended training so that the deployed 
guards perform their duties at the 
contracted skills level.  
 Compliance  WTO SSS (Security and Safety 
Section) and Protectas agreed to 
finalize first the training on charge of 
Protectas. Training on charge of WTO 
has not been completed due to the 
heavy workload with the renovation 
works and the Extra-Muros project.  
 Amene Bellir 
July 2013 
 WIP 
 Audit to assess training for the period 
September 2012 - August 2013 
(contract year) to verify compliance 
with the recommended 100% 
achievement for both Protectas and 
WTO SSS.  
LEGAL       
2. Draft a policy for approval by 
Management, on the use of video cameras 
and other tracking and investigative devices 
that are being used in the WTO. Consider 
including guidelines on carrying out various 
investigative activities else include these in 
a separate policy document.   Operational  Staff Notice on video surveillance for 
WTO staff and visitors approved, due 
to be translated into the 3 WTO 
languages and to be put on the 
intranet and internet/extranet to 
ensure full transparency. 
 
Investigation manual is in 
preparation.  Renouf Yves 
July 2013  WIP To review progress in 2013. 
 
 
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