RESTRICTED  
  
WT/BFA/W/327  
 
29 April 2014  
(14-2620)  Page: 1/45  
   
 
ANNUAL REPORT OF THE OFFICE OF INTERNAL AUDIT (OIA) 
JANUARY - DECEMBER 2013 (Y2013)WT/BFA/W/327 
 
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 Contents 
1   EXECUTIVE SUMMARY ................................................................................................. 4  
2   INTROD UCTION  .......................................................................................................... 8  
3   WORK PROGRAM SUMMARY ........................................................................................ 8  
3.1   Audit Plan  for Y 2013 .................................................................................................. 8  
3.2   Audit of the WTO Tangib le Assets and Consumab les ....................................................... 8  
3.2.1   Audit ob servations .................................................................................................. 9  
3.3   Status of implementation of  previous audit recommendat ions ......................................... 12 
3.3.1   Procur ement Audit ................................................................................................. 13 
3.3.2   Mission Travel ....................................................................................................... 14 
3.3.3   Payro ll ............................................................................................................... .. 16 
3.3.4   ITTC Administrative and Logistical Support Activities ................................................... 18 
3.3.5   Cleaning and Maintenance Services .......................................................................... 18 
3.3.6   Security and Safety Activities .................................................................................. 20 
3.3.7   Audit of Consultants and related serv ice providers ...................................................... 21 
3.4   Quality Assurance and Improvement Prog ram (QAIP) .................................................... 25 
3.5   Ad hoc Assignments .................................................................................................. 27 
3.6   Other Activities ........................................................................................................  27 
4   OIA STAFFING ........................................................................................................... 27  
5   PERSONNEL DEVELOPMENT ....................................................................................... 27  
6   BIENNIAL PLAN  Y2014-Y2015 .................................................................................. 27  
7   CONC LUSION............................................................................................................. 28  
ANNEX A SUMMARY OF SIGNIFICANT AUDIT RECOMMENDATIONS ON THE WTO 
TANGIBLE ASSETS AN D CONSUMAB LES ......................................................................... 29  
ANNEX B MISSION TRAVEL - IMPLEMEN TATION STATUS OF OUTSTANDING 
SIGNIFICANT RECO MMENDATI ONS ............................................................................... 33  
ANNEX C PAYROLL AUDIT - IMPLEMEN TATION STATUS OF OUTSTANDING 
SIGNIFICANT RECO MMENDATI ONS ............................................................................... 35  
ANNEX D ITTC ADMINISTRATIVE AND LOGISTICAL SUPPORT ACTIVITIES-
IMPLEMENTATION STATUS OF  OUTSTANDING SIGNIFICANT 
RECOMMENDATIONS ...................................................................................................... 36  
ANNEX E CLEANING AND MAINTENANCE SERVICES - IMPLEMENTATION STATUS OF OUTSTANDING SIGNIFIC ANT RECOMMEND ATIONS .................................................. 37
 
ANNEX F SECURITY AND SAFETY ACTIVI TIES - IMPLEMENTATION STATUS OF 
OUTSTANDING SIGNIFICAN T RECOMMENDATIONS ....................................................... 38  
ANNEX G CONSULTANTS AND RELATED SERVICE PROVIDERS- IMPLEMENTATION 
STATUS OF OUTSTANDING SIGN IFICANT RECOMMENDATIONS ..................................... 39  
ANNEX H AUDIT CAPABILITY /MATURITY MATRIX AS AT 31 DECEMBER 2013 ............... 44  
ANNEX I BIENNIAL AUDI T PLAN Y2014- Y2015 .............................................................. 45  
 
 
 
 WT/BFA/W/327 
 
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  ACRONYMS 
  AGSD  Administration and General Services Division 
CBFA  Committee on Budget, Finance and Administration 
CDM  Chemin de Mines CFE  Certified Fraud Examiner 
CHF  Swiss Francs 
CIA  Certified Internal Auditor CISA  Certified Information Systems Auditor  CPA  Certified Public Accountant 
CPD  Continuing Professional Development 
CRMA  Certification in Ri sk Management Assurance 
CWR  The Centre Willi am Rappard premises 
DDGs  Deputy Director(s) General  
DG  Director General  DGO  Director General's Office 
DSA  Daily Subsistence Allowance  
ERM  Enterprise Risk Management ERP  Enterprise Resource Planning FMS  Facilities Management Section 
HOIA  Head of the Office of Internal Audit 
HRD  The Human Resources Division IA  Internal Audit 
IIA  The Institute of Internal Auditors 
ILO   International Labour Organization IPPF  International Professional Practices Framework 
IPSAS  International Public Sector Accounting Standards 
IT  Information Technology ITC  The International Trade Centre 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 
NBV  Net Book Value OIA  The Office of Internal Audit  
PCSS  Poste Central de Securité et de Sureté (Security control room) 
PO  Purchase Order QAIP  Quality Assurance and Improvement Program RBM  Results Based Management 
RFP  Request For Proposal 
SDE  The Service Desk Express inventory database or register SFM  The Solution Facility Management inventory database or register 
SSA  Special Service Agreement(s) 
SSC  Special Service Contract(s) SSS  The WTO Security and Safety Section  
TA  Technical Assistance  
TRTA  Trade Related Technical Assistance UN  United Nations UNCTAD United Nations Conference on Trade and Development 
UNRIAS  United Nations Representatives of Internal Audit Services  
WIP  Work In Progress WIPO  World Intellectual Property Organization 
WTO  World Trade Organization 
  WT/BFA/W/327 
 
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  1   EXECUTIVE SUMMARY 
1.1.  This Annual Audit report covers Internal Audit (IA) activities of the World Trade Organization 
(WTO) for the period January to December 2013. Th e report constitutes: an introduction; a work 
program summary for Y2013; OIA staffing; personnel development; the biennial audit plan for 
Y2014-Y2015 and a conclusion. The repo rt also has a number of Annexes. 
1.2.  The IA function implements its activities a ccording to the provisions set out in the IA Charter 
as guided by the International Professional Prac tices Framework (IPPF). The IPPF is promulgated 
by the Institute of Internal Auditors (IIA) and co mprises International Auditing Standards, a Code 
of Ethics, Practice Advisories, Position Papers and Practice Guides. 
1.3.  The IA Charter1 requires OIA to present an Annual summary report to the Director General 
(DG), with a copy to the External Auditor, of ac tivities undertaken and progress on implementation 
of audit recommendations. The report is also presented to the Committee on Budget, Finance and 
Administration (CBFA). 
1.4.  In its sixth year of operation since its inception in March 2008, OIA provides an independent, 
objective assessment and evaluation of the WTO's control systems and processes in order to: 
strengthen accountability; improve the effectiveness of risk management, control, and governance processes; and ensure that the financial resources made available by Members are used effectively 
with a view to ensuring the best value for money. 
1.5.  The Annual Audit plan fo r Y2013 took into consideration the following activities: 
a. A review and assessment of the safeguard and existence of assets in compliance with 
provision 5(6) (c)
2  of the IA Charter. 
b. Follow-up audits to verify actions taken by management to implement outstanding 
recommendations from previous audits notably Procurement; Mission Travel; Payroll; ITTC Administrative and Logistical support activities; Cleaning and Maintenance services; 
Security and Safety activities and Consultants and related service providers.  
c. Forming part of ad hoc audit assignments, with effect from April and throughout Y2013, 
the Head of OIA (HOIA) was nominated to be the focal point for the WTO's participation 
in the External Evaluation of the International Trade Centre (ITC), a subsidiary organ of 
the WTO and UNCTAD. Besides, the HOIA toge ther with a representative from UNCTAD, 
formed part of the Technical assessment team that selected a vendor to carry out the evaluation of ITC.  
d. Worked on a structured Quality Assurance and Improvement Program (QAIP) to cover all 
aspects of IA activities. Results of the QAIP  self-assessment are illustrated in Annex H. 
They indicate that the audit activity is at the integrated  level of the Capability Matrix 
which implies that it generally conforms  to the IPPF of IIA with room for improvement in 
some areas in order to move to the Managed  level. Additionally as part of the QAIP, 
audit working papers were standardized and Key Performance Indicators (KPIs) 
introduced to assess performance of individual audit engagements and other attributes 
of the Audit function. The table below shows the Y2013 KPI results: 
 
 
 
                                               
1 OFFICE(08)/55/Rev.2- Provision 11(g) 
2 OFFICE(08)/55/Rev.2 – ' The OIA will therefore carry out financial and compliance audits and 
management performance (Value For Mo ney) audits with a view to verify ing the following; ………(c) the means 
by which assets are safe guarded and, as appropri ate, verifying the existence of such assets'. WT/BFA/W/327 
 
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  Table 1 KPIs for Y2013 
 Target KPI Realized KPI Comments 
Number of professionally Certified 
Audit staff  100% 100% Staff have one or more 
certifications for example CIA, CPA, CFE, CRMA, CISA   
Audit satisfaction rating  80% and above  86% According to feedback from 
Audit of the WTO Tangible 
Assets and consumables. All 
rated areas were above 80%. 
Annual Continuing Professional 
Development (CPD)training hours 
for each Audit staff  Minimum of 80 CPD 
training hours  HOIA-  72 CPD 
hours 
 Auditor  63.5 CPD hours  
Takes into account 
professional CPD requirements for the different certifications 
Completion of the Annual Audit 
plan  
 85% and above; 
100% for any Audits 
brought forward 
from the previous 
year 100% No audits were brought 
forward from Y2012 
 
e. All the targeted performance indicators were realized apart from training hours. The KPIs 
shall be reviewed on a continuous basis to gradually reflect the critical success factors of the IA function as it evolves. 
1.6.  OIA uses standard rating criteria to assess audit observations, reportable deficiencies and 
risks according to their impact and likelihood. The report mainly focuses on significant  audit 
observations and recommendations which 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.  
1.7.  As at 31 December 2013, OIA had carried out eight planned audits since inception, resulting 
in one hundred and ninety eight recommendations, one hundred and sixty four (83%) of which 
were considered to be significant in ranking.  
1.8.  The table below depicts the status of the significant audit recommendations as at 31 
December 2013 summarized as follows: 
a. By implementation status, 82% of the significant audit recommendations are 
implemented and/or closed, 20% of which were closed in Y2013 as briefly explained under each relevant audit subject. 
b.  There is Work In Progress (WIP) for 8% of the recommendations while 10% are open 
and pending implementation but with action plans in place to ensure that corrective 
actions are taken by the respective Divisions. 
c. By audit category, 65% of the significant audit recommendations are operational in 
nature, 18% are compliance, 11% are system-based or technological, 4% are financial and 1% strategic in nature.  
1.9.  For purposes of this report, all percentages have been rounded off to the nearest whole 
number . 
  WT/BFA/W/327 
 
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  Table 2 Summary implementation status of significant audit recommendations 
SUMMARY OF AUDIT ACTIVITY 
Audit Activity  Audit 
year Total number of 
recommendations  Significant  % 
Significant     
Procurement 2008 41 36 88%     
Mission Travel 2009 23 21 91%     
Payroll3 2010 25 21 84%     
ITTC Administrative and 
Logistical supp ort activities 2010 12 9 75%     
Cleaning and Maintenance 
services 2011 31 24 77%     
Security and Safety activities4 2011 21 19 90%     
Consultants and related 
service providers 2012 26 24 92%     
WTO Tangible Assets and 
Consumables 2013 19 10 53%     
Total  as at 31.12.13   198 164 83%     
SUMMARY OF SIGNIFIC ANT RECOMMENDATIONS 
      Implementation status as at 31.12.13 
 
Audit Activity   
Closed  
WIP  
Open  
Total 
Procurement    36 - - 36 
Mission travel   18 3 - 21 
Payroll    19 1 1 21 
ITTC Administrative and 
Logistical supp ort activities   8 1 - 9 
Cleaning and Maintenance 
services   23 1 - 24 
Security and Safety activities   18 1 - 19 
Consultants and related 
service providers   11 6 7 24 
WTO Tangible Assets and 
consumables   1 - 9 10 
Total as at 31.12.13   134 13 17 164 
%    82% 8% 10% 100% 
Audit Category    Closed WIP Open Total % 
Operational    91 6 10 107 65% 
Compliance   23 4 3 30 18% 
System   12 2  4 18 11% 
Financial    6 1  - 7 4% 
Strategic   2 - - 2 1% 
Total    134 13 17 164 100% 
of which closed in Y2013             
Operational    12       44% 
Compliance   10       37% 
System   2       7% 
Financial    3       11% 
Strategic   -       0% 
Total number of significant 
recommendations closed 
in Y2013   27       100% 
%   20%     
 
1.10.  The Annual Audit report for Y2012 acknow ledged and already reported on measures taken 
by former management to implement and close audit recommendations during the first quarter of 
                                               
3  Original Payroll recommendations were 33(thirty three), eight of which, all significant, were 
transferred in Y2012 to the Audit of 'Consultants  and related service providers' for follow up.  
4 Original recommendations on Audit of Security and Safety activities were 24( twenty four), three (two 
significant) of which were transferred in Y2013 to the Audit of the WTO Tangible Assets and Consumables.  WT/BFA/W/327 
 
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  Y2013 before leaving office later on in the ye ar. However, these corrective actions have been 
i n c o r p o r a t e d  i n  t h i s  r e p o r t  i n  o r d e r  t o  h a v e  a  c o m p r e h e n s i v e  s t a t u s  o f  i m p l e m e n t a t i o n  o f  a u d i t recommendations for Y2013.  
1.11.  The graph below shows the implementation status of the one hundred and sixty four 
significant recommendations at the close of Y2013. 
Figure 1 Summary implementation status  of significant audit recommendations 
 
1.12.  Details of all outstanding recommendations constituting those with a WIP or open status are 
annexed to this report according to each audit subject. The annexes include comments from the 
respective Division, the person responsible for taking corrective action and the expected 
completion date. Where relevant, updates have been included to recognize any reported and verified corrective actions taken just after 31 December 2013, during the preparation of this report. 
1.13.  No limitations were placed on the scope of work of the OIA in the course of conducting its 
activities in Y2013. 
1.14.  However, to promote continuity of the IA f unction, it is important to review the recruitment 
terms of the Auditor position which, at Grade 6, is capped at a fixed maximum non-renewable 
period of 5 years contrary to other WTO positions at similar Grade.  
1.15.  During the year, OIA remained focused on providing value adding IA services and 
continuous improvement of the audit process whic h would not be possible without the support of 
management and the cooperation of staff. 
_______________ 
 
 
 
 
 
  
WT/BFA/W/327 
 
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  2  INTRODUCTION 
2.1.  According to its mandate , OIA provides assurance and advice on financial, compliance and 
value-for-money audits, the primary objectives of which are to ensure: efficient and effective operations; reliable and accurate financial reporting; safeguarding of assets and compliance with 
regulations, rules, policies and procedures. 
3  WORK PROGRAM SUMMARY 3.1  Audit Plan for Y2013 
3.1.  The audit plan for Y2013 constituted the following audit activities: 
a. A review of the WTO tangible assets and inventory (consumables). 
b. Developing a structured QAIP that covers all aspects of the IA activity. 
c. Carrying out follow-up audits to ascertain the implementation status of outstanding 
corrective actions pertaining to concluded audits notably; Procurement; Mission travel 
Payroll; ITTC Administrative and Logistical support activities; Cleaning and Maintenance services; Security and Safety activities and Consultants and related service providers.  
d. Any ad hoc assignments by management.  
3.2.  The Audit Plan was approved by the DG, co mmunicated to the External Auditor, issued to 
management and presented to the CBFA.  
3.2  Audit of the WTO Tangible Assets and Consumables 
3.3.  Part of the Annual Audit Plan for Y201 3, the audit of the WTO tangible assets and 
consumables covered assets referred to as fixed assets in accounting terms. These are non-expendable items expected to provide future serv ice potential to the WTO during more than one 
reporting period. Such assets constitute prop erty, plant and equipment owned by the WTO for 
example furniture, audio visual equipment, securi ty equipment, reproduction equipment, vehicles 
and IT equipment. The exercise also covered rent ed equipment and heritage assets constituting 
various art works.  
3.4.  The objective, in compliance with the IA Ch arter, was to assess the, management, safeguard, 
accountability and physical existence of these assets. 
3.5.  Land and buildings did not form part of the audit scope neither did IT software developed 
internally or acquired externally although the cost of software bought together with hardware was considered to be part of the hardware and therefore formed part of the audit exercise. 
3.6.  A review of tangible assets also became more significant when the WTO implemented 
International Public Sector Accounting Standards (IPSAS) in Y2012 which require that assets in 
form of property, plant and equipment purchased ov er established thresholds should be capitalized 
in the financial statements, systematically depreciated over their estimated useful lives, and any 
impairment costs and ultimate carrying amounts determined. Prior to Y2012, they were wholly 
expensed and reported under Administrative costs of the WTO. 
3.7.  Furthermore, the audit exercise assessed controls in place to safeguard and ensure the 
efficient use of consumables such as printing and photocopying paper, cartridges and any other 
maintenance materials, spare parts and IT peripherals or auxiliaries.  Inventories in form of publications and souvenirs were excluded fr om the audit scope because they have been 
substantially covered by the External Auditor in recent years, although paper supplies in stock for 
producing such publications in-house formed part of the audit exercise. 
3.8.  Three significant recommendations on assets from previous audits were considered relevant  
to the scope of this audit and they were duly given consideration. They constituted one 
recommendation from the audit of procurement activities of Y2008 which was incorporated into WT/BFA/W/327 
 
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  this audit while two recommendations warranting a dditional follow-up from the audit of security 
and safety activities of Y2012 were transferred to this audit. 
3.2.1  Audit observations 3.9.  Two databases, the Service Desk Express in ventory database (SDE) and the Solution Facility 
Management inventory database (SFM), are used for registering, managing, tracking and keeping 
an audit trail of the physical location and existe nce of assets of the WTO. SDE, a licenced web-
based application under Information Technology Solutions Division (ITSD) is used for managing IT 
related assets such as computers and network equipment while SFM under Administration and 
General Services Division (AGSD) was built in-house and is mainly used for managing all other assets such as office furniture and equipment. However, the two databases are not integrated; they are totally independent of each other, neither are they integrated with Oracle, the financial 
reporting tool used by the WTO.  
3.10.  Having two databases managed by different Divisions causes duplication in asset operations 
and may not be an efficient and effective way of using the WTO resources. It is therefore not 
surprising that some assets were registered and duplicated in both databases while others each 
had two different bar codes affiliated to each of the databases. Duplicating data results in overstating the number of assets owned by the WTO and the corresponding cost. Such anomalies 
impact the quality and accuracy of the databases and their ultimate reliability. There is therefore 
room for improvement in validating the databases and subsequently merging them into one central database. 
3.11.  In addition, lack of specific guidelines to regulate the asset registration process, 
assignment, monitoring, asset removal and asset management in general exposes the assets data 
to various irregularities for example variances in the registered cost of the assets. Information in the two inventory databases indicated a total cost of CHF 33,295,971 as at 31 December 2012 
while in contrast the books of account in Oracle indicated a total cost of CHF 34,358,283 as 
depicted in the table below.   
Table 3 SDE and SFM position as at 31 December 2012 
Inventory 
database No. of  
assets  % 
no. Total Cost 
in CHF 
SDE 4,204 16% 5,611,452 
SFM 22,625 84% 27,684,519 
Total  26,829  100% 33,295,971 
Oracle    34,358,283 
                                Source: SDE, SFM and Oracle Databases  
 
3.12.  Further analysis of the assets registered in both SDE and SFM indicated that as at 31 
December 2012, 49% or 13,154 of the assets costing CHF 15,798,152 had a combination of 
inconsistencies and irregularities as illustrated in the chart and table below. Similarly in comparison, as at 14 October 2013, 46% or 13,409 of the assets costing CHF 19,060,685 had similar peculiarities.  
 WT/BFA/W/327 
 
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  Figure 2 Analysis–inventory databases (SDE & SFM) as at 31 December 2012 
 
 
ANALYSIS OF ANOMALIES IN BOTH SDE AND SFM INVENTORY DATABASES 
  As at 31 December 2012 As at 14 October 2013 
  Number  of 
assets  % Total cost  in 
CHF Number  
of 
assets  % Total cost  in 
CHF 
Total  number of assets 
in both SDE and SFM          
26,829   
100%     
33,295,971      
29,114   
100%   38,134,803  
Of which  type of 
registered anomaly             
Assets with no PO# 4,098 16% 6,975,300 4,101 14% 6,981,705 
Assets with no cost 2,710 10% - 2,820 10% - 
 Location CDM 3,258 12% 4,190,665 3,259 11% 4,190,955 
Virtual assets 52 0% 1,493,201 68 0% 4,501,015 
No quoted location 2,718 10% 2,439,734 2,843 10% 2,687,758 
Assets with no bar code 272 1% 652,110 272 1% 652,110 
Registered in both 
databases   
46  
0%  
47,142  
46  
0%  
47,142 
Total assets with 
anomalies  
13,154  
49%  
15,798,152  
13,409  
46%  
19,060,685 
 
3.13.  Such irregularities do not facilitate decisi on making on assets and pose risks for the WTO as 
follows: 
a. Having no PO number registered makes it difficult to track the assets in the books of 
account especially depreciable assets because the PO number is the point of reference 
for doing so.  
b. Furthermore, not registering a corresponding cost for the assets understates the total 
registered cost rendering the assets data incomplete, inaccurate and unreliable.  
c. The accuracy and reliability of the inventory databases could further be improved by 
ensuring that the correct location is regi stered. For example Chemin de Mines (CDM) 
remained registered as the physical location of assets in Y2013 notwithstanding that 
CDM premises were vacated and assets re-located to the Centre William Rappard 
premises (CWR) and the new Extra Muros building by the end of December 2012. WT/BFA/W/327 
 
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  d. Similarly not registering a location at all poses difficulties in tracking and ascertaining 
the physical existence and custodian assignment of the assets. 
e. Registering rental costs, delivery costs, se rvice costs, leasing costs, contract fees, 
installation costs and auxiliary costs  as virtual assets  when essentially they do not 
signify separate assets, are not identifiable physically, but constitute additions that 
probably should have been made to the cost of the original assets (capitalized), causes inaccuracies in the assets registration and recognition process. 
f. Opportunities exist for improving the coding of assets without which identifying, tracking 
the physical location, recording the movement and re-assignment of assets would be difficult.  
3.14.  Besides, both inventory databases do not have any internal controls in place to prevent 
incorrect data entry. This is exacerbated by lack of regular and systematic physical verification of 
assets which would assist in validating assets data and correcting any detected anomalies in the databases.  
3.15.  A corroboration of the above analysis with  a physical verification of some 1,052 types of 
assets in 75 locations of the WTO further underscored the need to enhance controls and accuracy in the registration of assets. Audit findings includ ed: assets not registered at all; assets with two 
barcodes; assets disposed of but not removed from the databases; registered location different 
from actual location or visited location not registered in the databases.   
3.16.   Areas that were physically visited to assess the safeguard of equipment had adequate 
controls in place to safeguard the equipment for example reproduction and leased equipment. 
However security controls in place with regard to ITSD data centre could be enhanced to provide a 
more secure environment without which chances of a security breach could materialize which may affect and impair continuity of the WTO operations.  
3.17.  In compliance with IPSAS, assets worth CHF 6,688,000 and constituting 19% of the total 
cost of assets CHF 34,358, 283, were subjected to  depreciation at the close of Y2012. Physical 
verification of a sample of depreciated assets indicated areas that require attention including: no 
barcodes or PO number registered for some of the depreciated assets;  depreciated assets not  
located; assets indicated as sold but subjected to depreciation and registered with a net carrying amount (NBV).  
3.18.  Furthermore, accurate and more reliable depreciation data could be derived from activating 
and using the available assets module in Oracle instead of using an Excel spreadsheet to house 
and compute the data. The module is integrated with the financials and it has a well-developed program for calculating, controlling and managing depreciation. 
3.19.  The WTO has a number of Heritage assets  in form of valuable art works donated by 
Governments, Artists and other partners. Nevertheless, their quantity could not be sufficiently ascertained because they are not registered, which makes them susceptible to loss. The 
management and accountability of Heritage assets could therefore be improved by having them 
properly registered. 
3.20.  Based on the observations above and in th e absence of guidelines on the process of asset 
registration and asset management in general, it was difficult to confirm the number of tangible 
assets owned by the WTO and to satisfactorily  ascertain their accountability and physical 
existence. 
3.21.  An assessment of consumables indicated that reproduction stock used for production and 
distribution of WTO publications was well safeguarded, accounted for and stock records kept in 
compliance with the WTO Financial Rules.  
3.22.  However, controls in registering printing and photocopying paper, cartridges and toner could 
be enhanced in order to: promote better stock management; side step any potential wastage; 
comply with the Financial Rules which compel stock to be registered; ultimately avoid any potential overstocking and unnecessarily tying up funds that could be better spent on other priority areas.  WT/BFA/W/327 
 
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  3.23.  The audit exercise came up with ninet een recommendations, ten of which were ranked 
significant because they constituted irregularities which if not checked, could have a substantial adverse impact upon the registration, existence, safeguard, management and accountability of assets owned by the WTO and on controls over consumables.  
3.24.  The significant audit recommendations, oper ational and system based by audit category are 
illustrated in the table below including two that were transferred from the audit of security and 
safety activities. 
Table 4 Audit of the WTO tangible assets an d consumables-implementation status as at 
31 December 2013 
AUDIT OF THE WTO TANGIBLE ASSETS AN D CONSUMABLES OF 23 DECEMBER 2013 
 TOTAL NUMBER OF ALL RECOMMENDATIONS         19 
  Implementation status as at 31.12.13   
  Closed WIP Open     
Number of recommendations 1 - 18     
Total % as at 31.12.13 5% 0% 95%     
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY   
 NUMBER OF SIGNIFICANT RECOMMENDATIONS         10 
  Implementation status as at 31.12.13   
 Audit Category Closed WIP Open Total % 
Operational  - - 6 6 60% 
System 1 - 3 4 40% 
Total number of significant recommendations 1 - 9 10 100%  
Total % as at 31.12. 13 10% 0% 90% 100%   
of which closed in Y2013 by audit category   
System 1         
Total  1         
 
3.25.  Closed recommendation 
a. All the significant recommendations are not yet implemented apart from one which is 
system-based by audit category. It originat ed from the audit of security and safety 
activities and concerned an improvement in the software Secu-Gesmag that was used for managing assets of the Security and Safe ty Section (SSS) of the WTO. It was closed 
because the software was discontinued in favor of SFM so as to have SSS assets 
centrally managed together with other WTO equipment. 
3.26.  A summary of the nine open significant recommendations, action plans by respective 
Divisions, persons responsible for implementi ng the audit recommendations and expected 
completion dates can be consulted in Annex A. 
3.3  Status of implementation of  previous audit recommendations 
3.27.  In compliance with the IA Charter, OIA ha s the responsibility to follow-up, and determine 
whether steps have been taken to adequately and effectively address matters reported on in audit 
findings and recommendations. Normally this is done mid-year and end/beginning of the year; however the annual audit report for Y2012 exceptionally took into consideration results from an 
additional follow up audit performed in April 2013. The purpose of the follow up audit was to 
incorporate corrective actions taken during the fi rst quarter of Y2013 by former management in 
anticipation of a change in senior management late r on in the year. These have been reiterated in 
this report in order to have a comprehensive status of implementation of audit recommendations 
for Y2013.  
3.28.  According to audit working procedures, recommendations that have a WIP status for more 
than a year without further progress and/or adequate justification for not being implemented 
revert to open status and the responsible Division of the WTO is notified accordingly. During 
Y2013, four recommendations were subjected to this procedure as explained under each relevant audit subject notably; one related to the payroll; two related to the audit of consultants and WT/BFA/W/327 
 
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  related service providers; and one recommendation th at was transferred from the audit of security 
and safety activities to the audit of the WTO tangible assets and consumables available for 
consultation under Annex A. 
3.3.1  Procurement Audit  
3.29.  One follow-up audit concerning procurement was carried out to assess the status of one 
outstanding significant audit recommendation which was implemented and closed by April 2013. It comprised an invoice settlement policy to regulate: the receiving and recording of invoices; the 
validation of the delivery of goods and services ; and the validation and payment of invoices.  
3.30.  Subsequently, by the end of Y2013, all audi t recommendations, significant or not, had been 
closed. Details of the significant audit recommendations are illustrated in the table below by audit category including a comparison with the results at the end of Y2012.   
Table 5 Procurement audit-implementati on status as at 31 December 2013 
PROCUREMENT AUDIT OF 17 NOVEMBER 2008 
TOTAL NUMBER OF ALL RECOMMENDATIONS 41 
  Implementation status as at 31.12.13 
  Closed WIP Open     
Number of recommendations 41        -    -     
Total % as at 31.12.13 100% 0% 0%     
Total % as at 31.12.12 98% 2% 0%     
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY  
NUMBER OF SIGNIFICANT RECOMMENDATIONS 36 
 Implementation status as at 31.12.13  
Audit Category Closed WIP Open Total % 
Operational  31 - - 31 86% 
Compliance 1 - - 1 3% 
System 4 - - 4 11% 
Total number of significant recommendations 36  - - 36  100% 
Total % as at 31.12.13 100% 0% 0% 100%  
Total % as at 31.12.12 97% 3% 0% 100%   
Number of significant recommendations closed by 
Audit category Closed in 
Y2013 Closed 
in 
Y2012       
Operational  1 3       
System  - 4       
Total  1 7       WT/BFA/W/327 
 
- 14 - 
 
  3.3.2  Mission Travel  
3.31.  Three follow up audits were carried out to  assess the implementation status of significant 
audit recommendations on mission travel. 
3.32.  As at 31 December 2013, eighteen or  86% of the twenty-one significant audit 
recommendations originally identified in Y2009 had been closed, four (22%) of which were closed 
in Y2013. In comparison, corrective actions for 67% of the significant audit recommendations had been realized as at 31 December 2012.  
3.33.  The table below shows the implementation status at the end of Y2013 compared to Y2012 
by audit category. The chart replicates the status at the end of Y2013.  
Table 6 Audit of mission travel-implement ation status as at  31 December 2013 
AUDIT OF  MISSION TRAVEL OF 13 OCTOBER 2009 
TOTAL NUMBER OF ALL RECOMMENDATIONS 23 
  Implementation status as at 31.12.13 
  Closed WIP Open     
Number of recommendations 20 3 -     
Total % as at 31.12.13 87% 13% 0%     
Total % as at 31.12.12 70% 30% 0%     
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS 21 
  Implementation status as at 31.12.13 
Audit Category Closed WIP Open Total % 
Operational  9 2 - 11 52% 
Compliance 3 - - 3 14% 
System 4 1  - 5 24% 
Financial 2 - - 2 10% 
Total number of significant recommendations 18  3  0  21  100%  
Total % as at 31.12.13 86% 14%  0% 100%   
Total % as at 31.12.12 67% 33% 0% 100%   
Number of significant recommendations closed by 
Audit category Closed in 
Y2013 Closed in 
Y2012       
Operational  3 -       
Compliance - 2       
System 1 1       
Total  4 3       
 WT/BFA/W/327 
 
- 15 - 
 
  Figure 3 Mission Travel- Summary of signif icant recommendations as at 31 December 
2013  
Closed WIP Open
Financial 10% 0% 0%
System 19% 5% 0%
Compliance 14% 0% 0%
Operational 43% 10% 0%0%10%20%30%40%50%60%70%80%90%
 
 
3.3.2.1  Y2013 activity status 
3.34.  Closed recommendations    
a. Operational  
i. Related to the travel policy, a recommendation to reimburse terminal expenses 
based on actual expenditure was considered closed during Y2013 in favor of management's decision to retain the status quo based on the UN model where 
terminal expenses are paid automatically for each journey to or from the airport or 
train station at a specified rate. 
ii. To promote accountability, controls were instituted to ensure that boarding passes 
and hotel receipts are always attached to travel claims by staff of the WTO.  
iii. The ITTC practical guide, available for consultation by staff on the intranet, was 
updated to incorporate controls that were instituted in form of a policy for purposes 
of promoting more effective management of expenses related to the WTO-funded 
activities (for example DSA rates and other entitlements applicable to participants and outside consultants).  
b. System 
i. In order to streamline ITTC activities and promote efficiency, documents related to 
Technical Assistance (TA) activities were automated including TA Activity and National Request forms, among others.  
3.35.  Work in progress  
a.  Operational  
i. Two recommendations under this audit category revolve around the WTO travel 
policy aimed at: improving procedures and guidelines for the planning and 
reimbursement of business travel and related expenses including DSA; ensuring better accountability and promoting more efficient use of the WTO financial resources. The draft revised policy was submitted to the JAC for its further 
consideration. WT/BFA/W/327 
 
- 16 - 
 
  b. System 
i. This entails providing OIA with a reliable tool for extracting and analyzing data 
independently and accurately. The tool that was provided needs further improvement. It is being examined with the ongoing project to upgrade the WTO ERP 
Oracle solution to a newer version. 
3.36.  Annex B illustrates the areas where corrective actions are yet to be achieved. 3.3.3  Payroll 
3.37.  Three follow up audits were carried out to verify corrective actions taken to rectify 
significant deficiencies that were identified in Y2010. 
3.38.  The table below illustrates the implementa tion status of twenty one significant audit 
recommendations at the close of Y2013 compared to the status at the end of Y2012. Nineteen 
(90%) corrective actions had been taken by the end of Y2013 to streamline payroll activities. 
Three (16%) of the corrective actions were instituted during Y2013.  
Table 7 Payroll audit-implementation status as at 31 December 2013 
PAYROLL AUDIT OF  28 JUNE 2010  
TOTAL NUMBER OF ALL RECOMMENDATIONS 25 
 Implementation status as at 31.12.13  
 Closed WIP Open   
Number of recommendations 21 1 3    
Total % as at 31.12.13 84% 4% 12%   
Total % as at 31.12.12 68% 32% 0%   
SIGNIFICANT RECOMMENDATIONS BY AUDIT CATEGORY  
NUMBER OF SIGNIFICANT 
RECOMMENDATIONS 21 
 Implementation status as at 31.12.13  
Audit Category Closed WIP Open Total % 
Operational  16 1 1 18 86% 
System 2 - - 2 10% 
Financial 1 - - 1 5% 
Total number of significant recommendations 19  1  1  21  100% 
Total % as at 31.12.13 90% 5% 5% 100%  
Total % as at 31.12.12 76% 24% 0% 100%  
Number of significant recommendations closed 
by Audit category Closed 
in 
Y2013 Closed in 
 Y2012   
Operational  3 4    
Total  3 4    
 
3.39.  The graph below highlights the implementati on status of the significant recommendations at 
the close of Y2013. WT/BFA/W/327 
 
- 17 - 
 
  Figure 4 Payroll- Summary of significant recommendations as at 31 December 2013 
 
 
3.3.3.1  Y2013 activity status 
3.40.  Closed recommendations 
a. Operational  
i. Full ownership, management and accountability of existing payroll and personnel 
data was attained by HRD, roles which had previously been partly undertaken by 
ITSD which consequently concentrates on providing technical support.  
ii. Similarly during Y2013, after ITSD finalized the integration of new data inputs into 
the payroll, their management and ownership was subsequently handed over to HRD 
to further streamline the process and enhance accountability, for example payroll data on Interns, among others. 
iii. Subsequently controls were put in place to limit access to payroll data according to 
functional need in order to promote integrity of payroll data. 
3.41.  Work in progress 
a. Operational 
i. The only (5%) significant audit recommendation that is in the process of being 
implemented is of an operational nature. It constitutes the need to sensitize staff on the WTO's core values and ethical behaviour. Although some sensitization was done, 
finalization of this outstanding task, previously dependent  on using E-learning as a 
delivery platform will now be decided during the WTO strategic review in Y2014. 
3.42.  Open recommendation 
a. Operational 
i. Previously reported as WIP, one (5%) significant audit recommendation of an 
operational nature reverted to open status in Y2013. It relates to providing staff with guidelines on how and when various WTO employment contracts should be used 
including: the criteria for assessing the need for renewal of short-term contracts; the 
acceptable number of renewals; and putting in place controls to ensure that short-term contracts are used as intended. 
WT/BFA/W/327 
 
- 18 - 
 
  3.43.  The two outstanding significant audit recommendations, both WIP and open, can be 
consulted in Annex C. 
3.3.4  ITTC Administrative and Logistical Support Activities 
3.44.  One follow up audit pertaining to ITTC Administrative and logistical support activities was 
carried out to assess the implementation status of one outstanding significant audit 
recommendation which is of an operational  nature. 
3.45.  It relates to enhancing controls in the use of short-term contracts in ITTC. The status 
remained the same at the end of Y2013 and Y2012. Two short-term positions in E-Learning section 
of ITTC that were previously earmarked for termination were deemed necessary for the implementation of the approved E-Learning Stra tegy. The short term contracts were extended 
until April 2014 and they are due to be replaced by two L posts following Vacancy Notices issued 
for one year Fixed Term contracts.  
3.46.  The table below analyses the status as at 31 December 2013 by audit category compared to 
the position at the end of Y2012.  
3.47.  Details of this outstanding recommendat ion are highlighted in Annex D including any 
relevant updates. 
Table 8 Audit of ITTC administrative and lo gistical support activities-implementation 
status as at 31 December 2013 
AUDIT OF ITTC ADMINISTRATIVE AND LO GISTICAL SUPPORT ACTIVITIES OF  
2 DECEMBER 2010 
TOTAL NUMBER OF ALL RECOMMENDATIONS 12 
  Implementation status as at 31.12.13 
  Closed WIP Open   
Number of recommendations 11 1 -  
Total % as at 31.12.13 92% 8% 0%  
Total % as at 31.12.12 92% 8% 0%  
 SIGNIFICANT RECOMMENDATI ONS BY AUDIT CATEGORY 
NUMBER OF SIGNIFICANT 
RECOMMENDATIONS 9 
  Implementation status as at 31.12.13 
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 % as at 31.12.13 89% 11% 0% 100%   
Total % as at 31.12.12 89% 11% 0% 100%   
Number of significant recommendations closed 
by Audit category Closed in 
Y2013 Closed in 
Y2012       
Operational  - 1       
Strategic - 2       
Total  - 3       
 
3.3.5  Cleaning and Maintenance Services 
3.48.  Three follow up audits were carried out to verify corrective actions taken to rectify 
significant deficiencies in cleaning and maintenance services that were identified in Y2011. 
3.49.  Corrective actions for twenty three (96% ) significant audit recommendations had been 
realized by close of Y2013 of whic h six (26%) were effected in Y2013. WT/BFA/W/327 
 
- 19 - 
 
  3.50.  The implementation status of the signific ant recommendations is illustrated in the table 
below by audit category as at 31 December 2013, with a comparative snapshot of the situation at 
the end of Y2012. The subsequent graph underscores the status as at 31 December 2013. 
Table 9 Audit of cleaning and main tenance services-implementation status as at           
31 December 2013 
AUDIT OF CLEANING AND MAINTENANCE SERVICES OF 30 JUNE 2011 
 TOTAL NUMBER OF ALL RECOMMENDATIONS 31 
  Implementation status as at 31.12.13 
  Closed WIP Open     
Number of recommendations 30 1 -     
Total % as at 31.12.13 97% 3% 0%     
Total % as at 31.12.12 71% 23% 6%     
 SIGNIFICANT RECOMMENDATI ONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS 24 
  Implementation status as at 31.12.13 
 Audit Category Closed WIP Open Total % 
Operational  17 - - 17 71% 
Compliance 4 1 - 5 21% 
System 1 - - 1 4% 
Financial  1  - - 1 4% 
Total number of significant recommendations 23  1  - 24 100%  
Total % as at 31.12. 13 96% 4% 0% 100%   
Total % as at 31.12.12 71% 21% 8% 100%   
Number of significant recommendations closed by 
Audit category Closed in 
Y2013 Closed in 
Y2012       
Operational  2 4       
Compliance 3 -       
System - 1       
Financial 1 -       
Total  6 5       
 
Figure 5   Cleaning and maintenance servic es- Summary of significant recommendations 
as at 31 December 2013 
Closed WIP Open
Financial 4% 0% 0%
System 4% 0% 0%
Compliance 17% 4% 0%
Operational 71% 0% 0%0%20%40%60%80%100%120%
 WT/BFA/W/327 
 
- 20 - 
 
  3.3.5.1   Y2013 activity status 
3.51.  Closed recommendations 
a.  Operational  
i. As at 30 April 2013, any omitted surface areas of the WTO that needed to be cleaned 
had been included in the contract with the service provider by way of addenda to the 
original contract in order to come up with a more reliable cost of cleaning services.  
ii. Following completion of the new building, lockers are now in place to provide 
adequate storage space for cleaning equipment and supplies. This solves the 
problem of keeping cleaning equipment in corridors and hall ways where they portray a bad public image, are susceptible to loss and misuse or may violate fire safety and evacuation rules if left near emergency exits.  
b. Compliance 
i. Two recommendations were closed with the amendment in the terms and conditions 
of contract with the cleaning service provider. A provision that required the cleaning 
service provider not to invoice the WTO the cost of any freed-up space or vacant 
offices was deleted due to difficulty cited in its implementation. On the other hand, a provision defining a clear time frame for submitting records on the criminal status of 
cleaners was inserted. 
ii. There is compliance by the cleaning service provider to submit documents, for 
example, third party insurance policy, yearly evaluation of KPIs, monthly quality control reports and yearly activity reports within the contracted timeframe and 
following the prescribed criteria.  
c. Financial  
i. Unlike previous practice and conforming to best practice, payments to the service 
provider were found to be well supported including justification for any extra costs 
charged.  
3.52.  Work in progress 
a. Compliance 
i. One significant audit recommendation on quality control remains outstanding. 
Although monthly quality controls were performed on various venues of the WTO by both the cleaning service provider and the WTO contract manager in compliance with 
the contract requirements and established criteria, a staff survey anticipated during 
Y2014 will provide more insight into the quality of cleaning services. The item will be considered closed if the results of the survey turn out to be satisfactory.  
3.53.  Annex E highlights details of the pending audit recommendation. 
3.3.6  Security and Safety Activities 3.54.  One follow up audit was carried out to assess the implementation status of outstanding 
significant audit recommendations on security and safety activities. 
3.55.  The table below depicts the implementation status of the significant audit recommendations 
at the close of Y2013. Eighteen (95%) of the recommendations are closed as at 31 December 2013, one (6%) of which was closed in Y2013. One recommendation (5%) is in the process of 
being implemented.  WT/BFA/W/327 
 
- 21 - 
 
  3.56.  The table however excludes the two significant recommendations that were previously 
closed under this audit and subsequently transferred in Y2013 for follow up under the audit of the WTO assets and consumables. Because of this tr ansfer and ensuing reduction in the number of 
significant recommendations initially reported for Y2012, comparison in status between Y2013 and 
Y2012 was deemed illogical. 
Table 10 Audit of security and safety activiti es-implementation status as at 31 December 
2013 
AUDIT OF SECURITY AND SAFETY ACTIVITIES OF 11 NOVEMBER 2011 
TOTAL NUMBER OF ALL RECOMMENDATIONS 21 
  Implementation status as at 31.12.13 
  Closed WIP Open     
Number of recommendations 20 1 -     
Total % as at 31.12.13 95% 5% 0%     
 SIGNIFICANT RECOMMENDATI ONS BY AUDIT CATEGORY 
 NUMBER OF SIGNIFICANT RECOMMENDATIONS         19  
  Implementation status as at 31.12.13 
Audit category Closed WIP Open Total % 
Operational  10 1 - 11 58% 
Compliance 8 - - 8 42% 
System - - - - 0% 
Total number of significant recommendations 18  1  - 19  100%  
Total % as at 31.12.13 95% 5% 0% 100%   
Number of significant recommendations closed by 
Audit category Closed in Y2013          
Compliance 1         
Total  1         
 
3.3.6.1  Y2013 activity status  
3.57.  Closed recommendation 
a. Compliance 
i. Corrective action was instituted in Y2013 to ensure that the WTO provides the 
contracted training to the outsourced security guards. Training funded by the WTO includes standard operating procedures for all guards and initial training of new guards on the WTO site. 
3.58.  Work in progress 
a. Operational 
i. For information purposes and transparency, a staff notice on video surveillance was 
published on the WTO intranet for WTO staff and visitors. Signboards on video 
surveillance were placed at relevant entry points of the WTO. Work on a manual on investigation activities is in progress. 
3.59.  Details pertaining to the outstanding recommendation can be consulted in Annex F.  
3.3.7  Audit of Consultants and related service providers 
3.60.  Three follow up audits were carried out on consultants and related service providers to 
assess actions taken to rectify anomalies identified on twenty four significant audit issues. 
3.61.  As at 31 December 2013, corrective actions for eleven (46%) significant recommendations 
had been realized, all in Y2013. WT/BFA/W/327 
 
- 22 - 
 
  3.62.  The implementation status at the close of Y2013 is depicted in the table below including a 
comparison with the status at the end of Y2012. 
Table 11 Audit of consultants and related serv ice providers-implementation status as at 
31 December 2013 
CONSULTANTS AND RELATED SERVICE PROVIDERS- AUDIT OF  20 DECEMBER 2012 
TOTAL NUMBER OF ALL RECOMMENDATIONS                                                                   26 
  Implementation status as at 31.12.13 
  Closed WIP Open     
Number of recommendations 12 7 7     
Total % as at 31.12.13 46% 27% 27%     
Total % as at 31.12.12 - 23% 77%     
 SIGNIFICANT RECOMMENDATI ONS BY AUDIT CATEGORY 
NUMBER OF SIGNIFICANT RECOMMENDATIONS                                                                    24 
  Implementation status as at 31.12.13 
Audit category  Closed WIP Open Total % 
Operational  3 1 3 7 29% 
Compliance 6 3 3 12 50% 
System - 1 1 2 8% 
Financial  2 1 - 3 13% 
Total number of significant recommendations 11  6 7 24 100%  
Total % as at 31.12.13 46% 25% 29% 100%   
Total % as at 31.12.12 - 25% 75% 100%   
Number of significant recommendations closed by 
Audit category Closed in 
Y2013 Closed in 
Y2012       
Operational  3 -       
Compliance 6 -       
Financial  2 -       
Total 11 -       
 
3.63.  The graph below emphasizes the implem entation status of the significant audit 
recommendations as at 31 December 2013. 
Figure 6   Consultants and related serv ice providers- Summary of significant 
recommendations as at 31 December 2013 
 
Closed WIP Open
Financial 8% 4% 0%
System 0% 4% 4%
Compliance 25% 13% 13%
Operational 13% 4% 13%0%5%10%15%20%25%30%35%40%45%50%
 WT/BFA/W/327 
 
- 23 - 
 
  3.3.7.2  Y2013 activity status  
3.64.  Closed recommendations 
a. Operational 
i. Benchmarking with similar Organizations was carried out to emulate best practices 
for recruiting consultants. The practices have been incorporated in the draft line 
managers' guide on recruiting consultants.  
ii. Two recommendations were closed concerning rates that are used to pay: 
Translators with Special Service Contracts (SSCs) /on-site contracts, while working 
from home; Translators with Special Service Agreements (SSAs) and Text Processors, because corrective actions were taken by management to review, officially document and approve the rates in Y2013. 
b. Compliance 
i. To promote consistency, avoid disparity and comply with laid down guidelines in the 
hiring of consultants, SSAs held by affe cted consultants were amended to exclude 
annual and sick leave.  
ii. Two corrective actions were realized to ensure proper authorization when hiring 
consultants. First and foremost, HRD instituted controls to enhance compliance by 
Divisions with the requirement to have the respective DDG/Director's approval to 
hire consultants. Subsequently by 30 April 2013, Divisions were complying with this requirement.  
iii. By the close of Y2013, HRD had put controls in place to prevent the hiring of 
consultants to do day-to-day regular work thereby promoting efficient and 
appropriate use of human and financial resources. Consultants are expected to provide technical skills, knowledge and expe rtize not normally possessed by regular 
staff of the WTO or for which there may be insufficient supply within the WTO.  
iv. Two recommendations targeted at ensuring value for money from one-man 
companies were implemented. Initially, checks and balances were instituted to 
ensure that all companies including one-man companies are not awarded SSAs but 
are consistently subjected to the procurem ent process and the required competition. 
Consequently, as at 31 December 2013, all Divisions had complied with this requirement.  
c. Financial  
i. Controls were heightened to monitor the posting of data in Oracle in order to 
eliminate mis-postings. 
ii. The implementation of IPSAS changed the account presentation which in turn 
facilitated the consistent and valid categorization of expenses in the Annual accounts which wasn't the case before thus promoting better planning and decision-making by 
management. 
3.65.  Work in progress 
a. Operational  
i. There is WIP by HRD to control and manage the movement of consultants and other 
staff between different contracts of employment including their remuneration in 
order to ensure compliance with the recruitment guidelines and the required competition for employment. 
 WT/BFA/W/327 
 
- 24 - 
 
  b. Compliance 
i. Two recommendations of a compliance nature concern SSAs entered into with 
consultants and related service providers.  Although not yet fully realized, there is WIP by HRD to put controls in place in order to have binding SSAs, signed off by 
both the subscribers and respective Division s of the WTO. However there is still room 
for improvement in ensuring that payments are not made to consultants and related service providers unless the contracts are properly signed off and are therefore 
binding.   
ii. Compliance with the terms and conditions of the IT Framework Agreement was 
noted. However, compliance with the terms and conditions of the new HRD Learning Framework Agreement which was modified in Y2013 is yet to be assessed. The 
service providers are expected to provide services at predetermined prices which 
were arrived at through a competitive bidding process in order to achieve efficiency gains for the WTO.  
c. System 
i. Although HRD has advanced in using an Excel file in the interim for its internal use in 
registering data on consultants, it is essential to establish a central database of pre-
qualified consultants in consultation with the Divisions. A central database which is 
accessible by all Divisions would help facilitate, monitor, control and evaluate the use of consultants and provide useful feedback on the skills and past job performance of 
the consultants.  
d. Financial 
i. For better analysis and decision making by management, travel expenses pertaining 
to consultants are now identifiable. This however is not yet the case for other types 
of contracts such as Short Term and Fixed Term. 
3.66.  Open recommendations 
a. Operational 
i. Procurement guidelines are yet to be subjected to consultants providing services to 
the WTO above the thresh hold of CHF 50,000. Applying the procurement guidelines and enforcing the required competition would ensure value for money for the WTO.  
ii. The recruitment process for consultants needs to be reviewed and the SSA guidelines 
amended in order to streamline the process, strengthen the controls in place and 
meet the needs of the Divisions. This recommendation reverted to open status during Y2013 in compliance with OIA procedures. Although there's a draft line 
managers' guide in progress since mid Y2012 to streamline the process, it is yet to 
be finalized, approved and implemented.   
iii. HRD is yet to take adequate ownership of 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 contracts. This recommendation also reverted to open status during Y2013 in compliance with OIA 
procedures.  
b. Compliance 
i. Three open recommendations of a compliance nature concern all Divisions of the 
WTO: first, it is important for HRD to put controls in place to ensure that all Divisions 
comply with laid down SSA guidelines for engaging consultants, this can only be 
successfully achieved when the draft line managers' guide on engaging consultants is 
implemented; secondly, Divisions will then be assessed on compliance with the SSA WT/BFA/W/327 
 
- 25 - 
 
  guidelines; thirdly with controls being instituted by HRD, Divisions are yet to affirm 
that all SSAs and other contracts with consultants and related service providers are consistently signed by both the Divi sions and the respective subscribers. 
c. System 
i. The possibility of keeping track of consultants, Panellists and Appellate Body 
members employed by the Organization in form of a central register is due to be examined by ITSD during or after the ERP pr oject relating to the upgrade of Oracle.  
3.67.  Details relating to the thirteen outstanding recommendations with a WIP and open status 
can be consulted in Annex G. 
3.4  Quality Assurance and Improvement Program (QAIP) 3.68.  A QAIP was recommended by the External Au ditor during a review of the IA function in 
Y2012. It is also a requirement by IIA standards which specifically call for a QAIP and 
subsequently reporting on the results. 
3.69.  A QAIP assesses the efficiency and effectiveness of the IA activity and identifies 
opportunities for improvement. It entails periodic validations both internal and external, of 
conformance with IIA's definition of Internal Auditing
5, the Code of Ethics, and the Standards as 
promulgated by IIA. It is therefore a road map fo r orderly improvement to strengthen capabilities 
within internal auditing. 
3.70.  Subsequently, during Y2013, in addition to  the External assessment by the External Auditor 
which fulfilled a key aspect of the QAIP, OIA used a self-assessment and development tool in form of a Capability/Maturity Matrix recommended by IIA to continuously assess the extent or maturity 
to which the IA activity had reached in term s of governance, policy, practices framework, 
organization and structure, resources and services.  
3.71.  The Capability/Maturity Matrix is illustrated in Annex H with five progressive capability levels 
through which the IA activity can evolve as it defines, implements, measures, controls, and 
improves its processes and practices. 
3.72.  The self-assessment results indicate th at the audit activity is mainly at the integrated level 
where it generally  conforms to the International standards for the professional practice of internal 
auditing.  However in some of the Key Process Areas (KPAs) there's progression towards the Management  level of the Capability/Maturity Matrix. It is worth noting that the appropriate 
capability level of any Organization should be commensurate with the nature, complexity and the 
risks to which the Organization is exposed therefore no one size fits all. 
3.73.  The maturity status of OIA can be summarized as follows, with the first four elements 
relating primarily to the management and practices of the IA activity itself. The last two elements 
constitute the IA activity’s relationship with the Organization, and the internal and external 
environments:  
a. Services and role of OIA- This concerns IA's role in providing independent and objective 
assessments to assist the Organization in accomplishing its objectives and improve 
operations. It was self-assessed to be at the integrated capability  level with OIA 
conducting not only financial and budgetary audits but also compliance, value for money audits and providing relevant advisory services. The services of the audit function are 
however not yet sufficiently comprehensive to provide reasonable assurance on the 
overall adequacy and effectiveness of the Or ganization's governance, risk management 
and control processes from an Organization wide perspective. Developing an audit 
strategy would facilitate movement towards the managed c apability level. This however 
is dependent on understanding the Organization's strategic direction, emerging issues and risks.    
                                               
5 'Internal auditing is an independent, objective assu rance and consulting activity designed to add value 
and improve an organization’s operations'. WT/BFA/W/327 
 
- 26 - 
 
  b. People management- This refers to the work environment that enables Auditors to 
perform to the best of their abilities. It was assessed to be at the integrated  capability  
level characterized by professionally qualified audit staff functioning as a team in order to maximise the limited human resources. There's progression towards the managed  
capability level by providing staff with leadership and professional development 
opportunities and supporting their involvemen t and participation in professional bodies. 
There are also some elements of optimization  with Auditors making contributions to the 
audit profession for example the HOIA is a memb er of the Board of trustees of a local IA 
Chapter and volunteers to make audit presentations on relevant audit subjects to local IA chapters.  
c. Professional practices – This reflects the policies, processes and practices that enable the 
IA activity to perform effectively with proficiency and due professional care. Falling under 
the managed  capability level, IA policies, processes, and procedures are now defined, 
documented, and integrated into each other following guidance from IIA's IPPF. This is 
essential: in guiding and managing OIA operations; developing work programs and 
planning; performing and reporting on the audit results. Key aspects include; an Audit manual for internal use; a QAIP now in place; working papers that have been 
standardized in Y2013 ; a  biennial plan link ed to the Organization's ERM practices and 
risk register from which high risk auditable areas are derived.  
d. Performance management and accountability–This element of internal auditing refers to 
the information that is necessary to manage, conduct and control the IA activity and 
account for its performance and results. Assessed to be at the integrated  capability level, 
processes are now in place to continuously monitor, assess and improve the effectiveness of the audit function including KPIs that were introduced during Y2013, 
results of which are already indicated in the Executive Summary. The KPIs include: audit 
satisfaction rating pertaining to the audit of the WTO tangible assets and consumables with all areas rated at more than 80% for example, professionalism of the Auditors, 
minimum disruption in audited operations, reasonable requests for information, 
usefulness of the audit, accuracy of the re port, among others; number of professionally 
certified audit staff; annual professional tr aining hours; and percentage completion of 
the annual audit plan. Apart from training, all the targeted KPIs were realized. The KPIs 
will be reviewed on a continuous basis to reflect the critical success factors of the IA 
function as it evolves in order to move towards the managed capability level. 
e. Organization relationship and culture - This el ement of internal auditing reflects the IA 
organizational relationships, structure and culture, internal and external relationships   to 
the Organization. It was assessed to be at the integrated  capability level with OIA 
coordinating its activities with the External Auditor to minimize duplication of effort. 
Additionally HOIA participates in management activities, is included in communications 
and forums of the management team and is able to maintain a channel of communication with senior management. 
f. Governance structure-This refers to the reporting relationships of the HOIA and 
governance processes within the Organization and the environment. This was self-
assessed to be at the integrated  capability level. The Audit function reports 
administratively and functionally to the DG. In compliance with the IA Charter, OIA has 
the authority to obtain access to information, assets, and people that it requires to carry 
out its duties. The External Auditor provides oversight and reviews the results of the IA 
activity, makes recommendations to strengthen its independence and ensures 
appropriate action is taken. In order to move to the managed capability level and as 
recommended by the External Auditor and promulgated by the Audit standards, consideration should be given to the establishment of an Audit Committee comprising members independent of the Organization's management and to which the audit function 
should have a reporting line in order to enhance its independence and strengthen the 
Organization's accountability.  
3.74.  The audit manual was continuously u pdated during the year to incorporate any 
improvements identified above. WT/BFA/W/327 
 
- 27 - 
 
  3.75.  Any weaknesses or areas for improvement w ill be addressed as appropriate, when they are 
identified, through the QAIP, and the results of ongoing monitoring will be reported on annually. 
3.5   Ad hoc Assignments 3.76.  With effect from April and throughout Y2013, the HOIA was nominated to be the focal point 
of the WTO participation in the External evaluation of ITC, a subsidiary organ of the WTO and 
UNCTAD. Besides, together with a representati v e  f r o m  U N C T A D ,  t h e  H O I A  w a s  p a r t  o f  t h e  
Technical assessment team to select a vendor to carry out an independent evaluation of ITC.  
3.6  Other Activities 
3.77.  During the year OIA continued to give advice on financial, budgetary and process aspects as 
and when contacted by other Divisions. 
4  OIA STAFFING 
4.1.  During Y2013, OIA was staffed with the HO IA and an Auditor who joined in February 2012. 
4.2.  However following a competition exercise at the end of Y2013, the Auditor joined the Finance 
Section of AGSD in March 2014 on promotion. OIA uses a short term Auditor pending the issuing 
of a Vacancy Notice for a replacement. 
4.3.  The recruitment terms of the Auditor need to be reviewed. Unlike other WTO positions at a 
similar Grade 6, the contract of the Auditor is capped at a fixed maximum non-renewable period of 
5 years which is detrimental to the continuity and stability of OIA. 
4.4.  The contract of the HOIA that was due to  expire at the end of March 2014 was extended for 
another year for the following reasons: to induct  new management on audit matters ; provide any required assistance during the anticipated WTO strategic review in Y2014 ; to safeguard the 
continuity of the office due to the move of the Auditor to Finance. This would avoid a situation 
where the Auditor and HOIA leave simultaneously and the subsequent appointment of a new HOIA 
coinciding with the appointment of a new Auditor. A competitive process to select a new HOIA is 
anticipated during the last half of Y2014 whereas a new Auditor is anticipated to take office in 
August 2014.  
5  PERSONNEL DEVELOPMENT  
5.1.  The two audit staff are professionally certified in one or more of different disciplines relevant 
to internal auditing as indicated in the Executive Summary. 
5.2.  As part of training, career development and for CPD requirements by IIA and other 
professional bodies to which the WTO Auditors are affiliated, OIA staff took part in IA conferences 
and workshops. Such fora enabled staff to netw ork, share and bench mark best practices with 
participants from similar Organizations. Depending on the planned training for each OIA staff, staff  also took part in various training events organize d internally by HRD to enhance individual skills 
and competence for example public speaking and pres entation skills, effective report writing. They 
also attended training conducted by external serv ice providers which included managing strategic, 
reputational and fraud risk and IT environment as pects from an audit perspective. The targeted 
KPI of 80 CPD hours was not realized with the HOIA earning 72 CPD training hours while the 
Auditor earned 63.5 CPD training hours. More and mo re emphasis will be given to training as the 
function evolves in order to enhance the Auditors' knowledge and skills as they relate to the work of the WTO and the IA profession in general. 
6   BIENNIAL PLAN Y2014-Y2015  
6.1.  The areas earmarked for audit in Y2014 and Y2015 are either: high risk areas derived from 
the WTO Organization-wide risk register maintain ed by AGSD; requests from the WTO members; 
or IPPF requirements. WT/BFA/W/327 
 
- 28 - 
 
  6.2.   Annex I depicts: the audit activities that will be carried out in Y2014 and Y2015, subject to 
review each year;  an outline of the scope and ob jectives under each audit activity; and for Y2014, 
the anticipated time of the year during which each audit activity will be carried out. 
6.3.  The audits to be carried out in Y2014 include the following:  
a. Managing sick leave and related circumstances. 
b. Information Security audit: This audit will be subjected to the procurement process and 
vendors will be invited to submit their bids under the established WTO procedures for formal competitive bidding. According to bench marks with similar Organizations that 
have had the same type of audit in recent years for example WIPO and ILO, the cost is 
not expected to exceed CHF 50,000. The usual vendors include global accounting and consulting firms PwC, Ernst and Young, KPMG and Deloitte. The invitation will also be 
open to other international bidders . 
During engagement  of the selected vendor and in 
compliance  with IIA standards,  OIA  will be tasked with supervision  of the audit  with  vital 
aspects to be considered  by OIA  including the following:  
i. Confidentiality and restrictions on information obtained during the audit 
engagement; 
ii. Ownership and custody of engagement working papers, where applicable; 
iii. Conformance with IIA standards for working practices for example the audit report 
format;  
iv. Among others. 
c. Resource management (Output planning and reporting)- With a new Auditor anticipated 
during the second half of the year , this will depend on the status of audit resources including the induction and learning curve to be expected. With the impending departure 
of the HOIA in the first quarte r of Y2015, it is important that the audit, if commenced is 
finalized by the end of Y2014 to ensure a smooth handover to the incoming HOIA.  
7  CONCLUSION 
7.1.  There is good effort by management to implement the audit recommendations with 82% of 
all outstanding significant recommendations closed as at 31 December 2013. OIA will continue to 
monitor the implementation status of the remaining outstanding recommendations. 
7.2.  However, it is important to review the re cruitment terms of the Auditor position to ensure 
stability and continuity of the IA function.  
 
______________ 
 WT/BFA/W/327  
 
- 29 -  ANNEX A SUMMARY OF SIGNIFICANT AUDIT RECOMMENDATIONS ON THE WTO TANGIBLE ASSETS AND CONSUMABLES   
N.B. The significant outstanding recommendation on SSS assets that was transferred from the audit of se curity and safety activities is 
in bold    
Significant Audit reco mmendation and Audit 
category (December 2013) Implementation status as reported by the 
implementing Division as at 31 December 2013 Implementation status and OIA comments 
as at 31 December 2013 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
AGSD      
1. Develop detailed guidelines to 
streamline the asset management 
process by defining: clear roles and 
responsibilities; the asset recognition 
criteria including asset related costs; 
required data entry fields; asset 
assignment and bar coding criteria; 
treatment of leased equipment; 
frequency of phys ical inventory; 
depreciation criteria; accountability for 
property plant and equipment by WTO 
staff; criteria for removal of assets 
from the inventory databases, among 
others. Operational  
 We will review the process in 2014 
to streamline and harmonize it. Bauswein 
Tristan,  
31.12.2014 
 OPEN  O I A  t o  r e v i e w  p r o g r e s s  i n  Y 2 0 1 4  
during mid-year follow–up Audit. 
2. Register and ensure that Heritage 
assets are properly managed and 
accounted for.  Operational  
 We will review the management of 
Heritage assets as part of this review. Bauswein 
Tristan, 31.12.2014  OPEN 
OIA to review progress mid-Y2014. 
FMS      
3. Validate and update the data in SFM 
to correct existing irregularities. 
Subsequently, perform regular verification (physical inventory) to verify the existence of tangible assets and consequently, validate and update the data in SFM. Evaluate the use of a 
real time scanner for more data accuracy and completeness. Operational "Existing irregularities" due to non-
location of barcodes.  Regular verification could be done as per UNOG procedures.  Real time scanning will be operational forthwith since renovation project is now finished. Sarrazin, 
Nicolas Barcodes located  Every 3 years  Jan. 2014  OPEN 
To review implementation status 
mid-Y2014 to include not only location of bar codes but correction of other irregulariti es such as assets 
with no location, wrong location quoted, assets disposed of but not removed from the database, among others. 
ITSD       
  WT/BFA/W/327  
 
- 30 - Significant Audit reco mmendation and Audit 
category (December 2013) Implementation status as reported by the 
implementing Division as at 31 December 2013 Implementation status and OIA comments 
as at 31 December 2013 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
4. Validate and update the data in SDE 
to correct existing irregularities. 
Subsequently, perform regular verification (physical inventory) to 
verify the existence of tangible assets 
and consequently, validate and update the data in SDE. Evaluate the use of a 
real time scanner for more data accuracy and completeness. Operational Against each of the following 
errors, what shall we do: a. Assets registered with no value: Suggested action - Shall we 
estimate manually a value? 
b. Assets registered with no PO number. Suggested action – Do nothing. c. Assets registered without any quoted location. -  Correct location. FYI, a physical asset review is scheduled for Jan/Feb 
2014 to correct this. 
d. Assets registered without a barcode reference – Don't know. e. Assets registered with CDM as the quoted location - Correct location. FYI, a physical asset review is scheduled for Jan/Feb 
2014 to correct this. 
f. Costs such as delivery costs, service costs, leasing costs etc. registered as virtual assets – Suppress value? Correct value? g. Assets registered in both databases. After clarity of who 
manages which one, elimination 
from one of the 2 dBs. h. Assets not registered – register them. FY I, a physical 
inventory review is scheduled for Jan/Feb 2014 to correct this. Segovia H, Monica OPEN 
The way forward is to liaise with 
AGSD in order to have clarity and documented guidelines on asset registration and asset management 
in general. 
OIA will follow-up with AGSD on progress made on the Guidelines during Y2014.   
5. Merge the two inventory databases 
SDE and SFM after the data has been 
validated and updated, in consultation 
with AGSD.  System I agree with the recommendation. 
In terms of timings, this needs to 
happen after a procedure with 
guidelines (Point 1. of this report) 
has been established. Also 
Divisional requirements for their Perreard 
Philippe OPEN OIA will follow-up with AGSD on 
asset guidelines during Y2014.    
  WT/BFA/W/327  
 
- 31 - Significant Audit reco mmendation and Audit 
category (December 2013) Implementation status as reported by the 
implementing Division as at 31 December 2013 Implementation status and OIA comments 
as at 31 December 2013 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
management tasks (In addition to 
inventory management) need to be 
understood (IT Assets registration 
is also used for support 
procedures). Finally, data needs to 
be cleaned-up (Point 9. And point 8 
of this report). 
Therefore, we need to have a 
collective assessment with AGSD 
and OIA when the above will be 
completed before moving to a 
single solution. 
6. Activate the assets module in 
Oracle which is already available and integrate data from the merged inventory databases SDE and SFM. Also incorporate depreciation computations. S y s t e m  T h i s  i s  n o t  a n  I T S D  
recommendation. I know though that this will be decided as part of the ERP Upgrade planned for 2014. Boudou Fabrice 
/Perreard Philippe- 2014 OPEN 
OIA believes that activation of the 
assets module, after a decision is made on the ERP upgrade, would be ITSD's responsibility. OIA to monitor progress in Y2014. 
 
SSS      
7. Reinforce security controls in place 
at the ITSD data centre by activating the existing badge readers and enhance video surveillance in compliance with video surveillance guidelines. System 2 cameras are planned to be set up 
in the data centre by the end of January. OIA will be informed as soon as they are installed. Jezequel, 
Nicolas End Jan.2014 OPEN 
Action plan noted for follow-up in 
Y2014. 
8. Repair or replace the entrance door 
to the security control room (PCSS) in 
order to enhance security and 
safeguard video surveillance 
equipment. Operational The PCSS is in renovation and the 
door will be changed. These 
renovation works are planned to be 
finished for mid- February. Jezequel, 
Nicolas 
Mid Feb.2014 OPEN Action plan noted for follow-up in 
Y2014.  
  WT/BFA/W/327  
 
- 32 - Significant Audit reco mmendation and Audit 
category (December 2013) Implementation status as reported by the 
implementing Division as at 31 December 2013 Implementation status and OIA comments 
as at 31 December 2013 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
9. Reconcile the SSS  
inventory/equipment   register with the main database (SFM) kept by AGSD.  Operational
 The sécugesmag application 
has been abandoned in favor of the application of the general WTO inventory.  In order to 
stick to the latter, a 
comprehensive comparative inventory in Excel format was conducted. This inventory is now available and ready to be transferred to the general inventory as soon as possible. Frank Frauciel/ 
 
July  2014 OPEN Item still outstanding, to revert 
to 'OPEN' status for monitoring in Y2014.  
 WT/BFA/W/327  
 
- 33 - ANNEX B MISSION TRAVEL - IMPLEMENTATION STATUS  OF OUTSTANDING SIGNIF ICANT RECOMMENDATIONS 
Significant Audit recommendation and Audit 
category (October 2009) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
Comments as at 31 December 2013 
+updates 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit 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 This is part of the revised policy that 
was submitted to the JAC in 
February 2014. We aim to 
implement it on the 1st of May. Tristan Bauswein 
01.05.14  WIP Re-submission to JAC noted.  
Had reverted to 'open' status 
during the year in compliance with 
Audit guidelines until further 
progress was noted. 
To monitor progress in Y2014.  
AGSD + BUDGET AND FINANCE       
2. Review and amend the Admin. 
Memorandum (policy guidelines) to 
include the following:  
- Prov. 41 - To debit the receivable 
account and not budget account; 
- Prov. 41- To include invoicing of 
outside financing bodies 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 Operational This is part of the revised policy that 
was submitted to the JAC in February. We aim to implement it on the 1
st of May.  Tristan Bauswein 
01.05.14 WIP  As above  
  WT/BFA/W/327  
 
- 34 - Significant Audit recommendation and Audit 
category (October 2009) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
Comments as at 31 December 2013 
+updates 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit comments 
categories of officials to whom the 
Memorandum is applicable; 
- A documented criteria for 
evaluating all forms of mission 
travel under the regular budget for example a business case or summary mission report 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 for example 15% 
per meal etc.; 
- Clarify Management's agreed 
decision on DSA accountability.  
ITSD       
3. Provide the OIA with a tool for 
extracting and analysing different types of data independently and accurately. System The ERP/Oracle upgrade project is at 
the end of the RFP phase to choose the integrator. We expect to start the implementation in March with a tentative date for the go live in October. We will examine the possible improvement during this period.    Perreard Philippe 
December 2014 WIP 
To review progress during Y2014. 
 
  
 WT/BFA/W/327  
 
- 35 - ANNEX C PAYROLL AUDIT - IMPLEMEN TATION STATUS OF OUTSTANDIN G SIGNIFICANT RECOMMENDATIONS 
Significant Audit recommendation and Audit 
category (June 2010) Implementation status as reported by the 
implementing Division as at 31 December 2013 Audit implementation status and OIA 
comments as at 31 December 2013  
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit comments 
HRD      
1. Organise a training/awareness on 
"ethics" to address the treatment of sensitive and confidential information. Operational Further work on the ethics training will 
be decided during  the strategic 
review.  Monica Lezama 
2014-2015 WIP 
Progress to be reviewed in 
Y2014.  
2. Review the guidel ines 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 Draft of Line Manager guide in process 
to be reviewed with selected 
Directors. 
Upon feedback, Line Manager guide 
and revised guidelines will be 
published online on the intranet. 
 Bernie Sheehan 
31 March 2014 OPEN Reverted to 'OPEN' status in 
compliance with audit guidelines. 
OIA to monitor progress in 
Y2014. 
  
 WT/BFA/W/327  
 
- 36 - ANNEX D ITTC ADMINISTRATIVE AND LOGISTICAL SUPPORT ACTI VITIES-IMPLEMENTATION STATUS OF OUTSTANDING SIGNIFICANT 
RECOMMENDATIONS 
Significant Audit reco mmendation and Audit 
category (December 2010) Implementation status as reported by the 
implementing Division as at 31 December 2013+ 
updates. Implementation status and OIA comments as 
at 31 December 2013+updates 
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
HRD      
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. 
Based on the needs of the division 
vacancy notices have been issued for 
1 year fixed term L-post positions Bernie 
Sheeban 
End  Quarter 1 
2014 
 WIP Short-term contracts of the 2 
remaining Short Term staff extended 
up to April 2014. 
Vacancy Notices issued in Feb.2014. 
Status and Division's comments 
noted.  
Had reverted to 'open' status during 
the year until further progress was 
noted. 
To monitor progress in Y2014.  
 WT/BFA/W/327  
 
- 37 - ANNEX E CLEANING AND MAINTENANCE SERVICES - IMPLEMENTATI ON STATUS OF OUTSTANDING SIGNIFICANT RECOMMENDATIONS 
Significant Audit reco mmendation and Audit 
category (June 2011) Implementation status as reported by the 
implementing Division as at 31 December 2013  Implementation status and OIA comments as 
at 31 December 2013  
   
Audit recommendation Audit 
category Status update Person 
responsible + 
expected 
completion 
date Status Audit comments 
FMS       
 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 staff survey on the satisfaction level 
of cleaning services will be conducted 
by mid-2014. 
 
A quality control is in place executed 
by TopNet and the WTO contract 
manager. Yannick Levrat 
/ Philippe 
Gualtieri 
July 2014 WIP 
 The frequency and criteria used in 
assessing the quality of cleaning 
services were incorporated in the 
contract with TopNet, Article 14.3 
and Article 26. 
Monthly quality control assessments 
were verified to be in place.  
T o  b e  c l o s e d  i f  r e s u l t s  f r o m  t h e  
anticipated staff survey in Y2014 are 
satisfactory. 
  
 WT/BFA/W/327  
 
- 38 - ANNEX F SECURITY AND SAFETY ACTIVITIES - IMPLEMENTATI ON STATUS OF OUTSTANDING SIGNIFICANT RECOMMENDATIONS 
Significant Audit Recommendation and Audit 
category (November 2011) Implementation status as reported by the 
implementing Division as at 31 December 2013          Audit implementation status and OIA 
comments as at 31 December 2013 
   
Audit recommendation 
 Audit 
category Status update Person 
responsible + 
expected 
completion date Status Audit comments 
LEGAL       
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   
Policy on video surveillance: - 
The policy on use of video 
surveillance has been approved by 
the top management and is 
available on the WTO Intranet 
portal. 
Investigation guidelines  could 
not be finalized as anticipated due 
to medical reasons. 
Expected completion time will 
depend on projects in waiting and 
time DGO will take to review the 
draft when submitted.  
 
 
 
 
 
 
Renouf Yves 
End February 2014 
 
 
 
  
 
 
 
 
 
 
WIP  
 
 
 
 
 
 
Noted, for further review in Y2014.  
 WT/BFA/W/327  
 
- 39 - ANNEX G CONSULTANTS AND RE LATED SERVICE PROVIDERS- IMPLEMENTATION  STATUS OF OUTSTANDING SIGNIFICANT 
RECOMMENDATIONS 
N.B. Significant recommendations  that were transferred 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 2013 
+updates Audit implementation status and OIA 
comments as at 31 December 
2013+updates 
   
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Audit comments 
MANAGEMENT AND AGSD      
1. Consider reviewing Financial Rule 
10.3(c) to apply proc urement guidelines 
to individuals supplying services above 
t h e  t h r e s h  h o l d  o f  C H F  5 0 K  t o  e n s u r e  
value for money for the WTO. Operational The process to review the Financial 
Regulations has been initiated with 
the CBFA and should be completed 
by the end of 2014. This element 
will be included. Tristan Bauswein 
December 2014 Open Status noted for further follow-up 
during Y2014. 
 
HRD      
      
2. Understand the need for 
consultants by the different Divisions. Review the recruitment process and amend guidelines in 
consultation with Legal Counsel and 
recruiting Divisi ons in order to 
streamline the process, strengthen 
the controls in place and meet the needs of the Divisions.   Operational Draft of Line Manager guide in 
process to be reviewed with selected Directors. Upon feedback, Line Manager guide and revised guidelines will 
be published online on the 
intranet . Bernie Sheehan 
31.03.2014 
 Open Item reverted to 'OPEN' status 
during Y2013 in compliance with OIA procedures.  New SSA Guidelines 
(handbook/Line Manager 
Guide) not yet approved and implemented. Some consultants were still paid fees above the recommended daily thresh hold amount without proper justification. However HRD continued to give advice on recruitment issues such as the choice between consultant & Short Term contracts. Similarly HRD continued to seek clarification from requisitioning Divisions concerning the recruitment of consultants. To be closed when draft SSA Guidelines are approved,  
  WT/BFA/W/327  
 
- 40 - Significant Audit recommendation and 
Audit category (December 2012) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
comments as at 31 December 
2013+updates 
   
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Audit comments 
implemented and complied 
with.  
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 Until a final decision is made 
regarding an on-line database, 
further expansion of the HRD 
tracking sheet can be made 
available and will include 
individual consultant feedback 
as it is acquired . 
 Bernie Sheehan 
Dependent on 
Oracle upgrade WIP Although the Excel file used by 
HRD to track consultants was 
found to accurately reflect data 
from a sample of Staff 
Requisitions and signed SSAs, 
the OIA however relances the 
need to have a central database 
for consultants more so since 
the current Excel file is kept by 
HRD for internal use only. 
The OIA is of the view that this 
file should be shared with the 
recruiting Divisions and should 
include useful feedback on the 
skills and past job performance 
of the consultants. 
4. Take more ownership in the 
recruitment process of individual consultants and related service providers by promoting some form of competition in the process of selecting consultants, ensuring that the rates paid are rational and signing off all contracts for consultants, Translators and Interpreters and approving the entitlements awarded.  Operational Draft of Line Manager guide in 
process to be reviewed with selected Directors. Upon feedback, Line Manager guide and revised guidelines will be published online on the intranet. Bernie Sheehan 
31.03.14 Open 
 
HRD Line manager guide is still pending.  
      
5. All SSAs entered into with consultants should be signed by both the WTO and the consultants.  Compliance The new guidelines and process will 
be implemented shortly which would then request a signed SSA contract from the Division to HRD.   Bernie Sheehan 
31.03.2014 WIP 
A sample of contracts for 
consultants/Translators in Y2013 Indicated that SSAs including: SSAs for Translators; SSCs for Translators and In terpreters were 
signed by both parties.  However for External Typists, not 
all contracts were signed by the  
  WT/BFA/W/327  
 
- 41 - Significant Audit recommendation and 
Audit category (December 2012) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
comments as at 31 December 
2013+updates 
   
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Audit comments 
respective subscribers although 
they were signed by the WTO. 
6. 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 Contracts committee approved new 
Framework agreement which will be 
valid for 2014-2016. 
New training Framework agreement  
includes provision for: 
-the Learning Services to widen the 
pool of training providers during the 
course of the Framework Agreement 
on condition that said providers do 
not exceed the highest daily rate for 
each of the respective courses. 
-inclusion of new learning and 
development needs to meet staff 
members' evolving work demands. 
 Monica Lezama 
Quarter 2-3 2014 WIP To review compliance with the new 
Learning Framework Agreement in 
Y2014. 
7. 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 Draft of Line Manager guide in 
process to be reviewed with selected Directors. Upon feedback, Line Manager guide and revised guidelines will be published online on the intranet.   HRD continues to monitor this movement and assists Directors and supervisors on the appropriate uses of SSA or short-term.  Bernie Sheehan 
31.03.2014 WIP 
Good progress noted in 
controlling the movement of staff between different contracts. Status to be assessed further, pending the implementation of the Line manager Guidelines. 
8. Put controls in place to ensure 
that all Divisions comply with laid 
down SSA guidelines for engaging 
consultants.  Compliance  Draft of Line Manager guide in 
process to be reviewed with 
selected Directors. 
Upon feedback, Line Manager 
guide  and revised guid elines will be 
published online on the intranet.  Bernie Sheehan 
31.03.2014 Open Reverted to open status during 
Y2013.  OIA will assess 
compliance when Line Manager 
guidelines are implemented.  
  WT/BFA/W/327  
 
- 42 - Significant Audit recommendation and 
Audit category (December 2012) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
comments as at 31 December 
2013+updates 
   
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Audit comments 
PROCUREMENT  		 	 
	
AGSD, BUDGET AND FINANCE      
9. Finance should not make payment to 
a  c o n s u l t a n t  i f  t h e r e  i s  n o  c o p y  o f  t h e  
contract duly signed  by both parties.  Compliance  Division of Human Resources has 
planned year framework contracts to 
deal with this situation. Tristan Bauswein 
July 2014  WIP External Typists were still paid by 
Finance despite the fact that their 
contracts were signed by the WTO 
but not by the engaged subscriber.  
To check the planned year 
framework contracts for proper 
signature, when in place. 
10. 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 Panellists and to aid decision-making by management.   Financial  Colleagues responsible for these 
payments have been informed again.  Tristan Bauswein 
June 2014 WIP 
Travel expenses of consultants are 
now identifiable but not yet the case for the other types of contracts i.e. Short-Term/Fixed Term.   
      
ITSD  		 	 
	
11. Create a central register to keep 
track of consultants, Panellists and 
Appellate Body members employed 
by the WTO.   System We will examine if we can do 
improvements during or after 
the Upgrade project. This project 
is at the end of the RFP phase to 
choose the integrator. We 
expect to start the upgrade in 
March with a tentative date for 
the go live in October.  Sara Thizy 
Nilsson /Philippe 
Perreard 
Dependent on 
ERP/Oracle  
upgrade Open To review with the ERP 
Oracle upgrade.  
ALL DIVISIONS  		 	 
	
12. SSAs and any other contracts 
entered into with consultants should be signed by both the Divisions and the consultants.  Compliance    Open 
Divisions are yet to affirm that all 
contracts under their jurisdiction are properly signed off.   
  WT/BFA/W/327  
 
- 43 - Significant Audit recommendation and 
Audit category (December 2012) Implementation status as reported by the 
implementing Division as at 31 December 2013 
+updates Audit implementation status and OIA 
comments as at 31 December 
2013+updates 
   
 
Audit recommendation  
Audit 
category  
Status update Person 
responsible + 
expected 
completion date  
Status  
Audit comments 
13. Comply with the SSA guidelines 
for consultants after they have 
been reviewed and approved by 
management.   Compliance   Open  To verify compliance after 
implementation of Line Manager 
guidelines on engaging 
consultants .  
 WT/BFA/W/327  
 
- 44 - ANNEX H AUDIT CAPABILITY/MATURITY MATRIX AS AT 31 DECEMBER 2013 
 Services and role 
of IA 
 People Management 
  Professional 
Practices 
 Performance 
Management and 
Accountability 
 Organisational 
Relationships 
and Culture 
 Governance 
Structure 
 
Level 5-
Optimizing IA recognized as Key 
Agent of Change Leadership 
involvement with Professional Bodies  Workforce projection 
 Continuous 
Improvement in Professional Practices   Strategic IA Planning Public Reporting of 
IA Effectiveness Effective and On-
going Relationships Independence, 
power and Authority of the IA activity 
 Level 4 -
Managed Overall Assurance on 
Governance, Risk Management and Control  IA contributes to 
Management   Dvt.  IA Activity Supports Professional Bodies  
  Workforce Planning  Audit Strategy 
Leverages 
Organization's 
Management of Risk Integration of 
Qualitative and Quantitative Performance Measures OIA Advises and 
Influences Top- level Management Independent 
Oversight of the IA Activity  OIA reports to Top-level Authority 
Level 3-
Integrated Advisory Services 
  
Performance/Value-
for-Money Audits Team Building and 
Competency 
 
Professionally Qualified 
staff 
 
Workforce Coordination 
 Quality Management 
Framework  Risk-Based Audit Plans Performance 
Measures 
 
Cost Information 
 
IA management 
Reports Coordination with 
Other Review 
Groups 
 
Integral 
component of 
Management 
Team Management 
Oversight  of the IA 
Activity 
 
Funding 
mechanisms 
  Level 2 -
Infrastructure Compliance Auditing In dividual Professional 
Development  Skilled People Identified and 
Recruited Professional Practices 
and Processes Framework   Audit Plan  Based on 
Management/ 
Stakeholder Priorities  IA Operating 
Budget  IA Business Plan Managing within 
the IA activity Full Access to the 
Organization's Information, Assets and People  
Reporting 
Relationships Established  
 Level 1-Initial Ad hoc and unstructured; isolated single audits or reviews of documents and transactions for accuracy and compliance; outputs d ependent 
upon the skills of specific individuals holding the position; no  specific professional practice s established other than those p rovided by 
professional associations; funding approved by management, as ne eded; absence of infrastructure; auditors likely part of a larg er 
organizational unit; no establ ished capabilities; therefore, no specific key process areas 
 WT/BFA/W/327 
 
- 45 - 
 
  ANNEX I BIENNIAL AUDIT PLAN Y2014-Y2015 
Audit subject Source Audit  Scope/Objective Year/Time  of 
Audit 
Managing sick leave 
and related circumstances AGSD global risk 
register+ DG 
request   Nature (work related or not), 
       monitoring  and management  Magnitude/number of staff affected 
 Compliance with any laid down 
Administrative procedures  
 Any other Controls in place  
Etc. 2014 
2
nd quarter 
Information Security 
 AGSD global risk 
register    Alignment with the WTO objectives 
and best practices in Information 
Security Governance 
 Confidentiality, Integrity and 
Availability of information 
 Management - Implementing, 
monitoring, communicating/reporting 
on information security 
 Ownership and accountability 
 Protection and securi ty of information 
 Present status of the WTO Information 
security policies an d standards and   
Compliance thereof 
Etc. 2014 
3rd quarter 
Resource management 
(Output planning and reporting) *  CBFA request   Alignment of resources to 
activities/outputs according to Organizational needs 
 The process of:  
o Allocating and accounting for 
work done by staff in different WTO Divisions to output areas and activities;  
o Allocating  expenditure to 
output areas and activities  
 Data quality and accuracy 
Etc. 2014 
4th Quarter 
Follow up- audits  Previous audit 
recommendations Implementation status of previous 
outstanding audit recommendations 2014 
- July-August 
- Dec- Jan.2015 
Ad hoc audits, if any  Per Management 
request To be determined 2014 
TBD 
RBM (Results Based 
Management) for TRTA  CBFA request   Methodology of :- 
o Defining TA Activity objectives 
o Identifying Performance 
Indicators 
o Demonstrating Outcomes of 
TRTA activities 
 RBM Monitoring & Evaluation (M&E)  
Etc.  
2015 
Enterprise Risk 
Management (ERM)  IIA Audit Standard 
2120  Risk management Policy- adequacy 
and compliance 
 Process of : 
o identifying and assessing risks 
o Aligning with objectives of the 
Organization and risk appetite 
o Communicating  risk 
information 
o Monitoring and controlling or 
responding to risks 
Etc. 2015 
Follow up- audits  Previous audit 
recommendations  Implementation status of previous 
outstanding audit recommendations 2015 
Ad hoc audits, if any  Per Management 
request To be determined 2015 
TBD 
*Dependent on status/availability of audit resources- to be re-assessed during the year.  
 
__________