RESTRICTED  
  
WT/BFA/W/ 458 
3 September  2018 
(18-5394) Page: 1/4 
Committee on Budget, Finance and Administration   
 
  
WTO BUDGET AND FINAN CE REPORT – 2ND QUARTER 201 8 
1  CONTRIBUTIONS FROM M EMBERS AND OBSERVERS  
1.1.  The receipts of contributions from Members as at the end of the second quarter of  2018 are 
slightly higher  than the receipts in June 2017. This is reflective of some significant contributions 
for the 2017 budget having been effected in January 2018 . At the end of the second  quarter of 
2018, 54% of the Members have no outstanding balance. With respect to the assessed amount of 
CHF 195 million, 65% has been received.  
Figure 1 Total Annual Receipts in MCHF as at 30 June  2018 
 
 
1.2.  The receipts of contributions for the 2nd quarter of 201 8 from Observers amounted to 
CHF 323,000  representing 48% of the assessed amount.  
Table 1 Status of contributions as at 30 June  2018 (in CHF)  
CONTRIBUTIONS  
  164 Members  23 Observers  
Total net assessment for 2018    195,500,000    674,475  
Payment received for 2018  
(% of  total assessment)  (65%)  127,339,583  (48%)  322,644  
Payment received for prior years    17,628,693    120,341  
No of Members/Observes with 
outstanding balance s   88  11 
 
2  CASH SITUATION  
2.1.  The cash situation at the end of June 2018 is satisfactory . The cash situation also includes 
funds received for the Doha Development Agenda Global Trust Fund (DDAGTF) and the Enhanced 
Integrated Framework  (EIF). 138.6  139.5  147.2  160.2  151.5  148.1  
131.7  132.6  135.4  145.0  
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018WT/BFA/W/4 58 
 
- 2 - 
 
  Figure 2 Cash Situation as at 30 June  2018 
 
 
3  MEMBERS AND OBSERVERS UNDER ADMINISTRATIVE MEASURES  
3.1.  At the end of June 2018, nine Members are subject to  Category I (more than one, but less 
than two years outstanding) of the Administrative Measures, four Member s are subject to Category 
II (more than two, but less than three years outstanding) and nine Members are subject to 
Category  III (from three  years outstanding = Inactive) . Since the March report, six Members 
(Angola, El Salvador, Lesotho, Nigeria, Tanzania and Togo ) made payments and came out of 
Category I . One Member (Central African Republic) came out of Category III  subsequent to the 
approval of its request for a payment plan and suspension of administrative measures . 
Table 2 Members under Administrative Measures as at 30 June  2018 
Cat. I (9)  Cat. II (4)  Cat. III (9)   
Belize  Antigua and Barbuda  Burundi*   
Burkina Faso  Cameroon  Chad*   
Congo  Guinea  Djibouti*   
Saint Vincent and the Grenadines  Rwanda  The Gambia*   
Senegal    Guinea -Bissau*  
Solomon Islands    Mauritania   
Suriname    Niger   
Uganda    Sierra Leone*  
Zambia    Venezuela, Bolivarian Republic of  
*  Members not compliant with payment plan terms  
 
3.2.  At the end of June 2018, two Observer s are subject to Category I of the Administrative 
Measures , and two Observer s are subject to Category III . One Observer, Timor Leste, made a 
payment and came out of Category I since the report of Quarter 1 2018 . 
Table 3 Observers under Administrative Measures as at 30 June  2018 
Cat. I (2)  Cat. II (0)  Cat. III (2)   
Somalia    Libya   
Syrian Arab Republic    Sao Tomé and Principe  
 
3.3.  As at the end of June 2018, two Member s (Central African Republic and Côte d'Ivoire) are 
subject to a Payment Plan . 
3.4.  The six Members listed  in the table below are not compliant with the  terms of th eir Payment 
Plan.  71 
24 17 11 15 12 
-17 -16 -19 -16 -18 -19 170 177 175 170 171 164 
-50050100150200
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECMillions CHF  
Projected Receipts Actual Receipts Projected Expenditures
Actual Expenditures Cash Rolling Balance 2017 Cash Rolling Balance 2018  WT/BFA/W/4 58 
 
- 3 - 
 
  Table 4 Members not compliant with Payment Plan  and therefore back to 
Category  III (Inactive)  as at 30 June  2018 (in CHF)  
Member  Plan 
duration  
in years  End of 
plan Last 
payment  
received  Amount of  
payment 
plan Outstanding 
contributions 
for years 
prior to 
2016 Amount 
Outstan -
ding 
for 2016  Amount 
Outstan -
ding 
for 2017  Amount 
Outstan -
ding 
for 2018  Total  
Outst anding 
Contributions  
Burundi  20 2030 02-Oct-17 892,747  437,527  11,184  65,785  65,785  580,281  
Chad  15 2026 31-May-
16 1,163,269  620,412  - 122,516  120,561  863,489  
Djibouti  10 2019 18-Aug-17 468,925  46,897  76,217  76,217  76,217  275,548  
The 
Gambia  10 2019 23-Mar-17 698,314  69,835  - 52,599  99,156  221,590  
Guinea -
Bissau  30 2046 06-Oct-17 671,720  626,938   - 134 51,716  678,788  
Sierra 
Leone  15 2025 30-Nov-16 968,118  451,790  29,324  93,866  93,866  668,846  
Total         2,253,399  116,725  411,117  507,301  3,288,542  
 
4  2018 BUDGETARY EXPENDITUR E 
Table 5 Consolidated Statement of Budgetary Expenditure  as at 30 June  2018  
(in kCHF)  
Part Section  Budget  Expenditure 
and 
Commitment  Balance  Budget as a 
% of 
Expenditure  
A Staffing 
Resources  1. Staff Expenditure  131,415  59,237  72,179  45% 
  2. Temporary Assistance  17,281  11,622  5,659  67% 
A Staffing Resources Total  148,696  70,858  77,838  48%  
B Other 
Resources  3. General Services  15,530  13,167  2,363  85% 
  4. Travel & Hospitality  7,360  5,719  1,641  78% 
  5. Implementing Partners  213 145 68 68% 
  6. Capital Expenditure  2,682  1,983  699 74% 
  7. Financial Expenditure  1,280  1,558  -278 122%  
B Other Resources Total  27,065  22,572  4,493  83%  
C Operating 
Funds and ITC  8. Contributions to ITC & 
Special Reserves  21,443  12,249  9,194  57% 
C Operating Funds and ITC Total  21,443  12,249  9,194  57%  
Grand Total    197,204  105,679  91,525  54%  
4.1.  The expenditure as at 30 June 2018 is on track with an overall expenditure rate of 54% or 
CHF 106 million. The expenditure also includes various commitments booked until year -end such 
as in the areas of General Services and Travel expenditure.  
Part A - Staffing Resources  
4.2.  Part A of the budget comprises expenditure for regular staff related to salary, pension, health 
insurance, death  and invalidity insurance, staff benefits and expenditure related to  travel, removal 
and installation. It also includes expenditure related to short term staff, consultants, panelists  and 
Appellate Body Member fees.  
4.3.  Under Staff Expenditure, the slight underspending is due to a high number of vacant posts at 
the beginning of the year. This is partly offset by over -expenditure under Temporary Assistance, 
which includes the replacement of staff o n leave without pay or on long term sick leave, as well as 
temporary staff working in the dispute settlement area and in other divisions of the Secretariat.  
Part B - Other Resources  
4.4.  Part B of the budget relates to expenditure for General Services, Travel and Hospitality, 
activities jointly funded by the WTO and thir d parties, as well as Capital and Financial expenditure.  WT/BFA/W/4 58 
 
- 4 - 
 
  4.5.  Under General Services , the commitments for several annual contracts are included such as 
the outsourced security contract (CHF 3. 6 million), the cleaning contract (CHF 1 million), the 
International Computing Centre (CHF 1.8 million), the IT Service Desk ( CHF 1  million), as well as 
the annual commitments  for utilities such as heating, water and electricity.  This explains the high 
expenditure rate at that point of time.  
4.6.  Under the Section "Travel and Hospitality ", the funds for the major technical assistance 
related activities  have been either expensed or committed until year -end. The divisional travel 
expenditure as well as the expenditure on technical assistance related activities are  on a very high 
level.  
4.7.  The Section 'Capital Expenditure' includes the procurement of fixed assets such as computing 
hardware and software, office furniture and security equipment.  The high expenditure rate under 
this item is related to the expenditure for  the security equipment of CHF 0.7 million and the 
purchase of computing hardware of CHF 0. 7 million.  
4.8.  The Section "Financial Expenditure " includes the annual reimbursement of the 50 -year 
interest -free loan for the new premises , amounting to  CHF 1.2 million, which has been  paid in 
June. This Section  also includes the bank charges for the WTO bank operations  and the negative 
interest charged by the banks . The negative interest amounted to CHF 358,000 at the end of June.  
Part C - Operating Fund s and ITC  
4.9.  Part C of the budget relates to the contributions to the International Trade Centre (ITC) as 
well as the three  operating funds.  
4.10.   Under Part C, the Appellate Body Operating Fund (CHF 2 million) , the Ministerial Operating 
Fund (CHF 0.6 million) and the Building Renovation Fund ( CHF 0.6 million ) have been replenished. 
The contribution for the ITC has been booked for the first half of 2018 . 
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