RESTRICTED  
  
WT/BFA/W/396/Rev.1  
 
            10  November  2016 
(16-6160) Page: 1/18 
Committee on Budget, Finance and Administration    
 
   
 
 
 
 
 
 
 
 
 
 
FINANCIAL RULES  
OF THE  
WORLD TRADE ORGANIZA TION  
 
Revision  WT/BFA/W/396/Rev.1  
 
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TABLE OF CONTENTS  
           Page 
1   AUTHORITY AND APPLIC ABILITY  ................................ ................................ ................  4 
1.1   Reference  ................................ ................................ ................................ ...................  4 
1.2   Applicability  ................................ ................................ ................................ ................  4 
1.3   Responsibility for implementation  ................................ ................................ ..................  4 
1.4   Additional instructions to be issued by the Deputy Director -General in charge of Finance  ...... 4 
1.5   Responsibilities of the Director of Administration and General Ser vices Division  ...................  4 
1.6   Responsibilities of the Office of Internal Oversight (OIO)  ................................ ..................  4 
1.7   Approaches outside the WTO  ................................ ................................ ........................  4 
1.8   Responsibility for funds from external sources  ................................ ................................ . 4 
2   PREPARATION OF THE B UDGET PROPOSALS  ................................ ...............................  5 
2.1   Form of the budget proposals ................................ ................................ ........................  5 
2.2   Responsibility for the preparation of the budget proposals  ................................ ................  5 
2.3   Furnishing of cost estimates  ................................ ................................ .........................  5 
3   COLLECTION OF CONTRI BUTIONS AND OTHER IN COME  ................................ ..............  5 
3.1   Responsibility for collection of c ontributions  ................................ ................................ .... 5 
3.2   Accounting for receipts  ................................ ................................ ................................ . 5 
3.3   Miscellaneous income  ................................ ................................ ................................ ... 5 
3.4   Proceeds from the sale of property, plant and equipment  ................................ .................  6 
3.5   Acceptance of funds for the WTO  ................................ ................................ ...................  6 
4   APPROPRI ATIONS AND ALLOCATIO NS ................................ ................................ ........  6 
4.1   Responsibility of the Deputy Director -General in charge of Finance for the implementation of 
the approved budget  ................................ ................................ ................................ ...........  6 
4.2   Responsibility of the Director of Administration and General Services Division to allocate 
appropriations in accordance with the Functional Budget ................................ ..........................  6 
4.3   Periodic revi ew of the expenditure position  ................................ ................................ ..... 6 
4.4   Transfers between items within the approved budget  ................................ .......................  6 
5   CONTROL OF OBLIGATIO NS ................................ ................................ ........................  7 
5.1   Obligations to be incurred only by duly authorized officials  ................................ ...............  7 
5.2   Proposals or drafts having financial and/or budgetary implic ations  ................................ ..... 7 
5.3   Control of obligations  ................................ ................................ ................................ ... 7 
5.4   Obligations to be incurred in conformity with the budget  ................................ ..................  7 
5.5   Objection to proposed obligations  ................................ ................................ ..................  7 
5.6   Adjustments of obligations  ................................ ................................ ............................  8 
6   PRESEN TATION AND CONTROL O F CLAIMS  ................................ ................................ . 8 
6.1   Payments to be made on the basis of claims  ................................ ................................ ... 8 
6.2   Supporting documents for claims  ................................ ................................ ...................  8 
6.3   Time-limits for the presentation of claims  ................................ ................................ ....... 8 
6.4   Control of claims  ................................ ................................ ................................ .........  8 
6.5   Claims to be accompanied by receiving reports  ................................ ...............................  9 
6.6   Safeguards  ................................ ................................ ................................ .................  9 
6.7   Objection to a claim  ................................ ................................ ................................ ..... 9 
7   PAYMENTS  ................................ ................................ ................................ ................  10 
7.1   Vouchers to support payments  ................................ ................................ ....................  10 
7.2   Payments to be made to duly entitled persons  ................................ ..............................  10 
7.3   Officials authorized to make payments and designation of cashiers  ................................ .. 10 
7.4   Staff remuneration, re imbursement and recoverables  ................................ ....................  10 
7.5   Advance and progress payments  ................................ ................................ .................  11 
7.6   Time-limits for payments  ................................ ................................ ............................  11 
7.7   Currencies of accounting and currency conversion rates  ................................ .................  11 
7.8   Responsibility for payments  ................................ ................................ ........................  12 WT/BFA/W/396 /Rev.1  
 
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  7.9   Payments through third parties  ................................ ................................ ...................  12 
7.10   Ex gratia  payments  ................................ ................................ ................................ .. 12 
7.11   Payments by official credit card  ................................ ................................ .................  12 
8   TREASURY MANAGEMENT  ................................ ................................ ..........................  13 
8.1   Treasury management  ................................ ................................ ...............................  13 
8.2   Designation of banks  ................................ ................................ ................................ . 13 
8.3   Operation of bank accounts  ................................ ................................ ........................  13 
8.4   Investment of funds  ................................ ................................ ................................ ... 13 
8.5   Loss of cash - cases of fraud  ................................ ................................ .......................  13 
8.6   Exchange of currencies  ................................ ................................ ..............................  13 
9   PROCUREMENT  ................................ ................................ ................................ ..........  13 
9.1   Authority and responsibility  ................................ ................................ ........................  13 
9.2   Competitive bidding and advertising  ................................ ................................ ............  14 
9.3   Exceptions to advertising requirements  ................................ ................................ ........  14 
9.4   Awarding of contracts  ................................ ................................ ................................  15 
9.5   Purchase to be made in writing  ................................ ................................ ...................  15 
9.6   Written findings  ................................ ................................ ................................ .........  16 
10   PROPERTY  ................................ ................................ ................................ ...............  16 
10.1   Authority and r espons ibility  ................................ ................................ .......................  16 
10.2   Property records  ................................ ................................ ................................ ...... 16 
10.3   Physical inventories ................................ ................................ ................................ .. 16 
10.4   Use of property or services of the WTO  ................................ ................................ ....... 16 
10.5   Treatment of cases of loss of assets, fraud or unrecoverable debt  ................................ .. 17 
10.6   Accounting for donated property  ................................ ................................ ................  17 
10.7   Disposal of surplus property  ................................ ................................ ......................  17 
11   THE ACCOUNTS  ................................ ................................ ................................ ....... 17 
11.1   Responsibility for maintaining and reporting the accounts  ................................ .............  17 
11.2   Principal accounts  ................................ ................................ ................................ .... 17 
11.3   Accrual Basis accounting  ................................ ................................ ...........................  18 
11.4   Archives  ................................ ................................ ................................ .................  18 
 
 WT/BFA/W/396/Rev.1  
 
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  1  AUTHORITY AND APPLIC ABILITY  
1.1  Reference  
These Rules are established pursuant to Regulation 3 of the Financial Regulations of the World Trade 
Organization (WTO).  
 
1.2  Applicability  
These Rules shall apply to the regular budget of the WTO and to all other funds placed at the 
disposal of the WTO, except in so far as the applicability of special regulations and rules for such 
other funds is recognised by the Deputy Director -General in charge of Finance.  
 
1.3  Responsibility for implementation  
The Deputy Director -General in charge of Finance is responsible to the Director -General for the 
application and implementat ion of these Rules. He or she may delegate any specific authority vested 
in him  or her pursuant to these Rules, in the appropriate  written format , to other officials of the 
WTO.  
 
1.4  Additional instructions to be issued by the Deputy Director -General in charge  of 
Finance  
Within the framework of the Financial Regulations and these Rules, the Deputy Director -General in 
charge of Finance may issue such additional instructions or establish such procedures as shall be 
necessary to ensure effective internal financial  control, sound administration of funds, and exercise 
of economy . No changes in such instructions or procedures shall be made without the approval of the 
Deputy Director -General in charge of Finance.  
 
1.5  Responsibilities of the Director of Administration and General Services Division  
The Director of the Administration and General Services Division is responsible to the Deputy 
Director -General in charge of Finance for the performance and/or supervision of all budgetary, 
financial and accounting operations.  
 
1.6  Responsibilities of the Office of Internal Oversight (OIO)  
The OIO assists the Director -General in fulfilling his  or her internal oversight responsibilities in  
respect of management, staff and resources of the WTO by conducting audits, evaluations , 
inspection s and  investigations and  reporting to the Director -General , or in case the Director -General, 
a Deputy Director -General or a member of the Office of the Director -General is directly concerned, to 
the Chairs of the General Council and of the CBFA .  
 
1.7  Approach es outside the WTO  
No approach shall be made either outside the WTO or within the WTO with a view to obtaining funds 
or resources, or exemptions from existing financial regulations, rules or provisions of the WTO, 
except with the prior written authorizatio n of the Director -General, the Deputy Director -General in 
charge of Finance or the Director of Administration  and General Services Division.  
 
1.8  Responsibility for funds from external sources  
No official may accept responsibility for the handling or managemen t of funds belonging to a 
government, or to any other body of an official or quasi -official nature with which he or she  is 
associated by reason of his or her status as an WTO official, unless he has been specifically 
authorized in advance to do so on the b asis of a decision by the Director -General.  
 WT/BFA/W/396 /Rev.1  
 
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  2  PREPARATION OF THE B UDGET PROPOSALS  
2.1  Form of the budget proposals  
The budget proposals of the WTO shall be drawn up as prescribed in Regulations 5 to 9  of the 
Financial Regulations. Presentation of the budget proposals shall be both in an overall form and, to 
the extent possible, broken down according to budget sections , i.e. in a functional format.  
 
2.2  Responsibility for the preparation of the budget proposals  
The Deputy Director -General in charge of Finance, with t he assistance of the Director of 
Administration  and General Services Division, shall be responsible to the Director -General for the 
provision of advice on budget and financial policy and for the preparation of the estimates of income 
and expenditure includ ed in the budget proposals and budget documents for submission to the 
Committee on Budget, Finance and Administrat ion and to the General Council.  For this purpose he or 
she shall assure the timely presentation of sound and realistic budget proposals confor ming to the 
Financial Regulations.  
 
2.3  Furnishing of cost estimates  
The Administration  and General Services Division shall be responsible for the preparation of all cost 
estimates that may be required in connection with the activities of the WTO including es timates of 
the cost of all projects, trust funds, meetings, staff salaries and missions.  No official shall issue cost 
estimates for use outside the WTO without prior written clearance of the estimates by the Director of 
the Administration  and General Serv ices Division.  
 
3  COLLECTION OF CONTRI BUTIONS  AND OTHER INCOME  
3.1  Responsibility for collection of contributions  
The Director of the Administration  and General Services Division shall be responsible to the Deputy 
Director -General in charge of Finance for collec ting and accounting for contributions due from 
Members  and Observers , as prescribed in Regulations 12 to 17 of the Financial Regulations.  
 
3.2  Accounting for receipts  
(a) All receipts shall be brought to account with the shortest delay possible.  Assessed 
contributions received by the WTO shall be accounted as of the date of receipt in the 
WTO bank account.  
 
(b) Voluntary contributions, gifts or donations, which directly or indirectly involve additional 
financial liability for the WTO, shall be kept in a suspen se account until their acceptance 
by the Committee on Budget, Finance and Administration has been authorized in 
accordance with Regulation 19 of the Financial Regulations  and the additional guidelines 
in Annex C . 
 
3.3  Miscellaneous income  
In accordance with Re gulation 18, miscellaneous income  includes  the following categories of receipts 
accruing to the WTO:  
 
(a) receipts from the sale of publications and the provision of services;  
(b) the difference between gains and losses on exchange;  
(c) savings on previous year's outs tanding obligations;  
(d) overhead on Trust Funds;  
(e) receipts f rom the rental of meeting rooms, office space , and common areas ; 
(f) assessments from Observer s; WT/BFA/W/396/Rev.1  
 
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  (g) refunds of expenditure of prior financial periods;  
(h) WTO cheques remaining uncashed for a period of twelve mo nths after the date drawn;  
(i) other receipts.  
 
3.4  Proceeds from the sale of property, plant and equipment  
(a) For accounting purposes, any gain from the sale of property, plant and equipment and 
intangible assets shall be credited to miscellaneous income and any lo ss shall be 
debited to other expenses.  
(b) For budgetary purposes, the proceeds from the sale of property, plant and equipment 
and intangible assets may be applied against the cost of replacement.   
 
3.5  Acceptance of funds for the WTO  
Payments to the credit of the  WTO shall be directed to a WTO bank account.  
 
4  APPROPRIATIONS AND A LLOCATIONS  
4.1  Responsibility of the Deputy Director -General in charge of Finance for the 
implementation of the approved budget  
The Deputy Director -General in charge of Finance is responsible t o the Director -General for ensuring 
that the expenditure of the WTO under the regular budget remains within the appropriations as 
voted and that such appropriations are used only for the purposes approved by the General Council.  
 
4.2  Responsibility of the Dire ctor of Administration  and General Services Division to 
allocate appropriations in accordance with the Functional Budget  
The Director of Administration  and General Services Division shall inform in writing the Directors of 
the amounts allocated to their di visions in accordance with the Functional Budget with the 
constraints limiting the use of these appropriations.  
4.3  Periodic review of the expenditure position  
(a) The Administration  and General Services Division shall monitor the extent to which 
allocations are u sed and prepare reports for the Director -General on amounts currently 
allocated, obligated and expended, and expected future expenditure, under the 
allocations.  
 
(b) Directors shall have access to information  regarding the expenditures and unliquidated 
obligat ions recorded against their respective Division's allocations provided under the 
Functional Budget.  
 
(c) The budgetary reporting to the Members shall be performed as determined in Financial 
Regulation 37. However, if the scheduling of CBFA meetings does not al low for 
quarterly reporting six weeks from the end of the period, the quarterly reports will be 
presented at the next scheduled CBFA meeting, noting that the year -end closure may 
require additional time.  
 
4.4  Transfers between items within the approved budget  
Transfers between sections of the expenditure budget shall be handled through the internal control 
system, subject to a report submitted by the Secretariat to the General Council for approval at the 
end of the financial period.  Transfers between items wit hin the approved budget are only 
authorized pursuant  to Regulation 21 of the Financial Regulations . WT/BFA/W/396 /Rev.1  
 
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  5  CONTROL OF OBLIGATIO NS 
5.1  Obligations to be incurred only by duly authorized officials  
No contract shall be concluded and no order shall be placed on behalf of  the WTO except by an 
official to whom a formal authority to incur such obligations has been delegated by the Deputy 
Director -General in charge of Finance.  
 
5.2  Proposals or drafts having financial and/or budgetary implications  
(a) Any draft paper for the General Council which contains a proposal likely to have direct or 
indirect financial or budgetary implications shall be signed by the Division's Director , or 
the staff membe r who has responsibility for the issue, and sent to the Director of 
Administration  and Gen eral Services Division for financial evaluation and clearance 
before being submitted to the Deputy Director -General in charge of Finance  for his  or 
her approval . 
 
(b) Advance clearance and financial evaluation must be obtained before seeking the final 
approval  on any document or communication having a direct or indirect financial 
implication.  
 
5.3  Control of obligations  
(a) All contracts, appointments, mission orders, purchase orders, or other documents by 
which a financial obligation is to be incurred on behalf of the  WTO must be submitted in 
advance to the Administration  and General Services Division for financial clearance.  
 
(b) An authorised official of the Administration  and General Services Division shall review 
the obligating documents submitted in the light of the a pplicable financial regulations 
and rules, the approved budget, and the available balances in the respective allocations. 
He or she  shall also assure himself  or herself  that the principles of sound economy are 
maintained.  If the obligating document confor ms with the above requirements, it shall 
be certified by an authorised official of the Administration  and General Services Division 
that funds are available and have been reserved to meet the resulting expenditure.  
Approved obligations shall be recorded b y the Administration and General Services 
Division.  
 
(c) No obligating document shall be released outside the WTO without the certification by 
an authorised official of the Administration  and General Services Division that funds are 
available.  
 
5.4  Obligations to be incurred in conformity with the budget  
Obligations shall be incurred only in strict conformity with the relevant budget.  All obligating 
documents submitted for financial clearance shall be accompanied by an indication of the appropriate 
accounting clas sification.  In case of doubt, the correct classification against which any charge is to 
be made shall be determined by the Head of Budget and Planning . 
 
5.5  Objection to proposed obligations  
If the Director of Administration  and General Services Division cann ot approve an obligating 
document submitted for certification he or s he shall state his  or her objections in writing.  If the 
requesting official does not agree with the objection, the matter shall be referred to the Deputy 
Director -General in charge of Fi nance for decision.  
 WT/BFA/W/396/Rev.1  
 
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  5.6  Adjustments of obligations  
If part or all of an amount recorded as an obligation is no longer required for the purpose originally 
foreseen , the necessary adjustment shall be made immediately.  
 
6  PRESENTATION AND CONTROL OF CLAIMS  
6.1  Payment s to be made on the basis of claims  
(a) In accordance with established policies, no payment shall be effected except for the 
payment of salaries, wages, regularly established allowances and amounts due under 
external collaboration contracts with individuals, u nless claimed by the payee.   
(b) Payments due under external collaboration contracts with individuals shall be made on 
the basis of payment requests submitted by authorised officials; such requests shall be 
treated in the same way as claims.  
(c) For each claim su bmitted, the claimant shall certify that the claim is fair and correct and 
that payment has not yet been received.  
(d) Where special forms for claims exist, claims must be presented on these forms.  
6.2  Supporting documents for claims  
(a) Claims submitted for payment m ust include  support ing documents, either in paper or 
electronic format . 
(b) Payment of claims that are not supported by necessary documentation shall be refused 
by the Administration and General Services Division.  
6.3  Time -limits for the presentation of claims  
(a) All claims shall normally be presented within one month  from the conclusion of the 
event or activity .  
(b) Claims in respect of officially authorised travel shall be submitted within one month after 
such travel has been completed.   
(c) Claims for overtime shall be su bmitted within one month after such overtime has been 
completed.  
(d) Claims involving discounts for prompt payment shall be flagged and shall be processed 
within the discount deadline.  
(e) Claims that do not respect the deadlines set in paragraphs (a), (b), (c), o r (d) shall be 
refused for payment unless authorized by the Deputy Director -General in charge of 
Finance.  
6.4  Control of claims  
(a) Officials authorised to certify claims  shall subject each claim to careful scrutiny before 
authorising payment, and shall mainta in records of all claims processed for payment.  
 
(b) No claim shall be authorised for payment unless its validity has been clearly established.  
 
(c) Officials authorised to incur obligations shall supply the officials authorised to certify 
claims  with any information required in connection with the control of claims.  
 WT/BFA/W/396 /Rev.1  
 
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  6.5  Claims to be accompanied by receiving reports  
(a) Paper or electronic format claims based on invoices for the provision of goods or services 
shall be submitted to the officials authorised to c ertify claims , together with a certified 
receiving report stating whether the goods or services have been furnished in accordance 
with the specifications of the order, and whether the claim is administratively approved 
for payment.   
 
(b) Electronic format  claims must be supported by proper documentation such as invoice 
and receipt of goods and services, in order to be processed in the workflow of the 
Enterprise Resource Planning ( ERP) system .  
 
(c)  The Deputy Director -General in charge of Finance may waiv e the requirement of 
receiving reports in the case of standard services  such as public utilities . 
 
(d) For goods delivered to a place outside Geneva, payment may be authorized upon receipt 
of documents provided that the goods were dispatched appropriately insured to their 
destination.  A duly executed receiving report must be forwarded to the Administration  
and General Services Division immediately upon receipt of goods.  
 
(e) In the case of Rule 6.5(c) the official forwarding the claim shall certify that th e goods 
were dispatched with appropriate insurance coverage.  
 
6.6  Safeguards  
(a) Officials authorised to incur obligations and the officials authorised to certify claims  shall 
take all necessary steps to avoid duplicate payments of claims.  
 
(b) Except where th is is unavoidable, no official shall be assigned simultaneously any two of 
the following functions: purchasing and/or acceptance of goods or services, 
controlling /certifying claims  and disbursing  funds . 
 
6.7  Objection to a claim  
(a) When the Director of Admini stration  and General Services Division  or any duly authorised 
official  objects to the payment of a claim in full or in part, he or she shall communicate 
his or her objection  to the official presenting the claim.  If the official does not agree with 
the obj ection, he or s he may appeal through proper channels to the Deputy Director -
General in charge of Finance.  
 
(b) If the Deputy Director -General in charge of Finance decides that a claim is to be paid 
notwithstanding an objection by the Director of Administra tion and General Services 
Division  or by any duly authorised official , he or she shall do so in writing without 
compelling the objecting official to be the one to effect the payment.  Such decision shall 
be in writing and a copy retained  by the objecting o fficial for audit purposes.   WT/BFA/W/396/Rev.1  
 
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  7  PAYMENTS  
7.1  Vouchers to support payments  
(a) No payments shall be effected without satisfactory supporting documents.  Except for 
payments made from cash advances , these documents must show that the payment 
has been approved by officials authorised to certify claims . 
 
(b) No verbal authority shall be accepted for making any payments.  
 
7.2  Payments to be made to duly entitled persons  
(a) Payments shall be made only to the persons to whom they are due, or to their legal 
representatives.   A payment shall be  made to a bank account in the name of the person 
to whom payment is due.  
 
(b) The Director of Administration  and General Services Division may refuse to effect 
payment of any salary, allowance or other payment to a third party claiming  the 
payment on behalf of the person to whom it is due. If payments are made to such third 
party or a legal representative, the nature of the authority under which such payment 
has been made shall be stated on the supporting document. The cession or other 
authority shall either be attached to the supporting document, or the Director of 
Administration  and General Services Division shall certify on the supporting document 
that a sufficient authority was produced.  
 
7.3  Officials authorized to make payments  and des ignation of cashiers  
(a) All payments  shall be made by duly authorised officials of the Administration and 
General Services Division after approval by the officials authorised to certify claims, 
except for payments made by any other person specifically designa ted for this purpose 
by the Deputy Director -General in charge of Finance.  
 
(b) Officials who are to perform the function of cashier shall be designated by the Director 
of Administration and General Services Division. The exact duties of each cashier shall 
be notified to him  or her in writing by the designating official. Petty cash management 
is set according to the policy approved by the Deputy Director General in charge of 
Finance.  
 
7.4  Staff  remuneration , reimbursement  and recoverables  
(a) Salaries , wages and contri butions to pension and medical plans shall be paid in 
accordance with the relevant provisions of the Staff Regulation s and Staff Rules , or 
other applicable rules , such as Administrative Memoranda .  All amounts deducted 
from salaries shall be paid as soon a s practicable to the accounts to which these 
amounts are due.   
 
(b) Reimbursement for travel expenses and payment of any allowances , grants or 
indemnities  to members of the staff shall be effected in accordance with the Staff 
Regulations and Staff Rules or ot her applicable rules , such as Administrative 
Memoranda . 
 
(c)  Any payment to staff members , which was not due to them,  can be recovered  
pursuant to Staff Rule 106.9  through the payroll , with the deduction of the total 
amount effected within a period not ex ceeding  12 months.  Where the irregularity of 
the payment was due to negligence on the part of the staff member , by not informing 
the Secretariat of changes in his  or her circumstances that have an impact on his  or 
her benefits , or was so apparent that it c ould not have been realistically missed by the 
staff member , the right of the WTO to recover such payment shall not lapse.  WT/BFA/W/396 /Rev.1  
 
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  7.5  Advance and progress payments  
The Director of Administration  and General Services Division may authorise the inclusion in a 
contract of provision for such advance payments or partial payments for work in progress as may be 
required by normal commercial practice and the interests of the WTO.  Except for (i) cases where 
specific provision of this nature ha ve been included in a contract wi th the approval of the Director of 
Administration  and General Services Division , (ii) cases involving standard services such as public 
utilities, or (iii) cases covered by Rule 6.5(d), payment may be made only after the services or goods 
have been received .  Claims for advance and progress payments shall be presented in accordance 
with Rule 6.5.  
 
7.6  Time -limits for payments  
(a) Once it has been ascertained that a payment is in order, it shall be made within a 
maximum of ten (10) working days.  
 
(b) Proper atten tion shall be paid to claims offering a cash discount for prompt payment.  
 
7.7  Currencies of accounting and currency conversion rates  
(a) The accounts of the WTO shall be maintained in Swiss Francs ; however subsidiary 
accounting records may be maintained in ot her currencies.  
 
(b) The conversion rates used for internal accounting purposes, called the WTO rate of 
exchange, shall be set by the Deputy Director -General in charge of Finance.  
 
(c) Contributions received in a currency other than the Swiss franc shall be converted and 
credited at the bank rate of exchange at the time of receipt indicated by the value date 
and recorded at the WTO rate of exchange.  Gains or losses in exchange shall be 
accounted for under (j) below.  
 
(d) Salaries shall be paid in Swiss Francs. The currencies in which the allowances of WTO 
staff members may be paid (whatever the currency in terms of which the entitlement is 
expressed) shall be established by the Deputy Director -General in charge of Finance.  
 
(e) When allowances are paid in a currency other than that in which they are expressed, 
the rate of exchange used for the payment shall  be the WTO rate of exchange 
applicable at the time of payment.  
 
(f) Advances relating to allowances (except with regard to Education Grants) and expense s 
of staff members for which the entitlement is expressed in terms of a  currency other 
than the Swiss F ranc shall be recorded in Swiss Francs  at the WTO rate of exchange 
applicable at the time of the advance.  
(g) Education Grants:  
 
(i)  Advances relating t o Education Grants and made in currencies other than Swiss 
Francs  shall be recorded in Swiss Francs  at the WTO rate of exchange;   
 
(ii) final settlement will be calculated in the same currency as the advance , and 
recorded in Swiss Francs at the WTO rate o f exchange . 
 
(h) When expenses incurred by staff members or other persons to whom a payment is due 
from the WTO are reimbursed by the WTO in a currency other than that in which the 
expenses were incurred, the conversion rate used for the purpose of the rei mbursement WT/BFA/W/396/Rev.1  
 
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  shall be the WTO rate of exchange applicable on the date on which the expenses were 
incurred . 
  
(i) in cases of trust funds where a related advance has been made in a currency 
other than that in which the expenses are reimbursed by the WTO, the expenses 
incurred up to the amount of the advance shall be converted at the rate of 
exchange at which the advance was secured.  
 
(i) Where a third currency is involved, the local currency obtained by the conversion of the 
second currency shall be taken into  account at the WTO rate of exchange and any 
difference as a loss or gain on exchange.   
 
(j) Exchange gains and losses resulting from the revaluation of assets and liabilities held in 
currencies other than the Swiss franc shall be accounted under miscella neous income.  
 
7.8  Responsibility for payments  
An instruction from a superior shall not relieve an official authorized to approve payments from 
responsibility for an irregular payment, unless the irregularity was pointed out by the official to the 
Director of Administration and General Services in writing and the objection was overruled in writing.  
If the Director of Administration and General Services Division object s to a payment and this 
objection is overruled by the Deputy Director General in charge of Fin ance, the overruling should be 
in writing, with a copy to the Director General , and shall be reported to the External Auditor.  
 
7.9  Payments through third parties  
(a) Duly authorised officials of the Administration and General Services Division may 
transfer funds to be distributed via agreed partners.  Such partners shall be defined by 
specific agreements  with the WTO . 
7.10  Ex gratia  payments  
The Director -General may, on an exceptional basis, authorise such ex gratia  payments as he  or she 
deems to be necessary in the in terests of the WTO.  A statement of such payments , specifying the 
precise amount and the recipient of each ex gratia payment,  shall be submitted with the final 
accounts.  
 
7.11  Payments by official credit card  
Official credit cards may be issued to some officia ls, by the Director of the Administration and 
General Services Division , to transact on behalf of the WTO . The officials  who are provided with 
the official  credit cards will be provided with written instructions on the permissible use of the 
credit cards.   
 WT/BFA/W/396 /Rev.1  
 
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  8  TREASURY MANAGEMENT   
8.1  Treasury management  
The Deputy Director -General in charge of Finance shall establish a Treasury Management Policy for 
funds in the custody of the Director -General.  The Director of Administration and General Services 
Division shall  be responsible for its implementation.  
 
8.2  Designation of  banks  
The Deputy Director -General in charge of Finance shall designate banks of internationally 
recognised standing to facilitate treasury management operations of the funds of the WTO. The 
criteria f or the selection of banks shall be in accordance with the Treasury Management Policy.     
 
8.3  Operation of bank accounts  
Bank accounts shall be operated jointly by two or more officials to be designated by the Director -
General.  
 
8.4  Investment of funds  
(a) Funds  that are not immediately required shall  be invested in non -speculative 
investments, in accordance with Financial Regulation  31. 
 
(b) Other funds for which the Director -General is responsible shall be invested in 
accordance with any special guidelines in force for such funds, or in the absence thereof, 
in similar manner to funds available under the regular budget.  
 
8.5  Loss of cash - cases of fraud  
Any loss of cash or negotiable instruments resulting from  fraud, suspected fraud, presumption of 
fraud or attempte d fraud must be reported at once to the Office of Internal Oversight  which will 
ensure that appropriate follow -up action is taken.  
 
8.6  Exchange of currencies  
Officials designated by the Deputy Director -General in charge of Finance shall be responsible for the  
operation of official Bank Accounts and giving instructions for the exchange of funds from one 
currency to another, in accordance with the Treasury Management Policy.  
 
9  PROCUREMENT  
9.1  Authori ty and responsibility  
(a) The Deputy Director -General in charge of Finan ce shall be responsible for the 
procurement functions of the WTO. He  or she shall issue administrative instructions 
concerning the types of Procurement activity and monetary values for which such 
methods of solicitation are to be used.  
(b) Delegation of author ity from the Deputy Director -General in charge of Finance shall be 
assigned on an individual basis.   
(c) The Deputy Director -General in charge of Finance shall establish a Contracts 
Committee. He  or she shall issue administrative instructions concerning the a ctivity of 
such committee. The Contracts Committee shall meet to consider purchases falling 
under the terms of Rule 9.2 and for any amount equal to or greater than CHF50,000.   WT/BFA/W/396/Rev.1  
 
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  (d) The Deputy Director -General in charge of Finance may establish other review 
committees to provide written advice to officials engaged in procurement.  The 
Deputy Director -General in charge of Finance shall establish the composition and 
terms of such committees.   
(e) Where the advice of any review committee is required, no final action l eading to the 
award or amendment of a procurement contract may be taken before such advice is 
received.  
(f) In cases where the Deputy Director -General in charge of Finance decides not to accept 
the advice of the Contracts Committee or any other review committ ee, he or she shall 
record the reasons for such decision, in writing , and communicate it to the Contracts 
Committee .   
9.2  Competitive bidding and advertising  
(a) Consistent with the principles set out in Regulation 42 and except as otherwise 
provided in Rules 9.2 (b) and 9.3, procurement contracts shall be awarded on the 
basis of effective competition. To this end the competitive process shall, as necessary, 
include:  
(i) Acquisition planning for developing an overall procurement strategy and 
procurement methodologi es. 
(ii) Market research for identifying potential suppliers while encouraging as much as 
possible international procurement.  
(iii) Consideration of prudent commercial practices.  
(iv) Formal methods of solicitation, utilizing invitation to bid or request f or proposals 
on the basis of advertisement or direct solicitation of potential suppliers, or 
informal methods of solicitation such as request for quotations.  
(v) Due consideration of additional costs related to the implementation of the 
contract.  
(b) Rule 9.2  (a) shall not apply to employment contracts, to external collaboration 
contracts with individuals, or to procurement of goods and services in relation to 
technical cooperation projects. Financial criteria and procedures applicable to such 
contracts shall be approved by the Deputy Director -General in charge of Finance.  
9.3   Exceptions to advertising requirements  
The Deputy Director -General in charge of Finance may waive the application of Rule 9.2(a) in 
cases where he or she  decides in the interest of the WTO t o do so, and in particular:  
 
(a) when there is no competitive marketplace for the goods or services to be procured, 
such as where a monopoly exists, where prices are fixed by legislation or government 
regulation or where the procurement involves a proprietary product or service;  
(b) when there has been a previous determination or there is a need to standardize the 
goods or services to be procured which renders competition impracticable;  
(c) when there is extreme urgency, provided that the circumstances are unforeseen and a 
lack of diligence and/or foresight by a WTO service is not the cause of this extreme 
urgency;   
(d) when offers for identical products and services have been obtained competitively 
within the previous 12 months;  WT/BFA/W/396 /Rev.1  
 
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  (e) when documented efforts to obtain satisfa ctory bids through effective competition 
have failed to provide satisfactory results;  
(f) when the proposed procurement is the result of cooperation with other international 
organizations or a specific agreement with a donor;  
(g) when the proposed procurement is for the purchase or lease of real property and 
market conditions do not allow for effective competition;  
(h) when the proposed procurement relates to obtaining goods and services that do not 
lend themselves to comparison.    
(i) when, within the calendar year,  th e value of the procurement is below the monetary 
threshold established for competitive bidding.  
A record shall be maintained of all cases in which the application of Rule 9.2 (a) has been waived.    
 
9.4  Awarding of contracts  
Contracts, including purchase ord ers, shall be awarded based on the following requirements:  
 
(a) In the case of Requests for Quotations (RFQ) and Invitations to Bid (ITB), contracts  
shall be awarded to the best qualified vendor submitting the most technically 
acceptable and lowest quotation o r bid.  
(b) In the case of Requests for Proposals (RFP), contracts shall be awarded to the qualified 
vendor whose proposal is considered to offer the best value (technical and financial) 
and the most responsive to the needs of the WTO.  
(c) If the interest of the WTO so requires, any or all quotations, bids or proposals 
submitted in accordance with procedures identified in (a)  or (b) above may be 
rejected. In such a case, the reasons for rejection shall be recorded and a 
determination shall be made in accordance wi th approved policies and procedures 
whether to solicit new competitive tenders, to enter into a negotiated contract or to 
cancel the procedure . 
9.5  Purchase to be made in writing  
(a) All purchase  orders  or contracts shall be made in writing.  
(b) The documents embodyin g the terms of such purchases shall in all instances, provide 
detailed information regarding the following:   
i. the description of the products or services being procured;  
ii. the quantity being procured;  
iii. the total value of the procurement and/or un it price(s);  
iv. the period covered;  
v. the conditions to be fulfilled, including the WTO general terms and conditions;  
vi. the terms of delivery and payment;  
vii. the name and address of supplier.  
(c) The requirement for written procurement contracts shall no t be interpreted to restrict 
the use of any electronic means of data exchange provided that the system concerned 
is capable of ensuring authentication and confidentiality of the information.   WT/BFA/W/396/Rev.1  
 
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  9.6  Written findings  
(a) Each determination or decision required o f an authorised procurement official by the 
provisions of these rules shall be documented and placed in the appropriate record.  
 
(b)  An instruction from a  superior shall not relieve an O fficial authorized to approve 
purchase orders from the responsibilit y for an irregular purchase unless the 
irregularity was pointed out by the Official, to his  or her direct supervisor or to the 
Chair of the Contracts Committee, in writing and the objection was overruled in 
writing. In the event that Director General deems  that a departure from procurement 
processes is desirable in the interest of WTO, as envisaged in Financial Regulation 42, 
he or she  shall make such determination in writing and a copy thereof shall be 
provided to the External Auditor.  
 
10  PROPERTY  
10.1  Authority and r esponsibility  
The Deputy Director General in charge of Finance is responsible for the management of the 
property, plant and equipment and inventories of the WTO, including all systems governing their 
receipt, valuation, recording, utilization, safekee ping, maintenance, transfer and disposal, 
including sale, and shall designate the officials responsible for performing property management 
functions.  
10.2  Property records  
(a) Records shall be maintained of all property, plant and equipment, supplies and 
materi als received, issued, sold or otherwise disposed of, and remaining on hand.   
 
(b) The Director of Administration and General Services Division  shall establish the nature 
and extent of the records to be maintained for the purposes of this Rule.  
 
(c) Record s shall be maintained , in respect of supplies and property accounts , by a 
designated official.   
 
(d) Control accounts shall be maintained recording the total value of capital assets 
purchased and sold, or otherwise acquired and disposed of.  
 
10.3  Physical inven tories  
Physical inventories shall be taken of all supplies, equipment or other property of the WTO, or 
entrusted to the charge of the WTO, at such intervals as may be deemed necessary by the Deputy 
Director -General in charge of Finance to ensure adequate c ontrol over such property.  In addition, 
the receiving officer shall certify that the goods received have been entered in the register of 
stocks or inventory.  
 
10.4  Use of property or services of the WTO  
(a) The property or the services of the WTO shall not be u sed for private purposes except 
where specifically authorised in the interest of the WTO by the Director of 
Administration  and General Services Division.  
 
(b) The Director of Administration  and General Services Division shall determine the 
amounts due to t he WTO for the use of its property or services.  
 
(c) Goods or services of the WTO may be made available to Members  or any other entities  
on such terms and conditions as may be appropriate in each case.  
 WT/BFA/W/396 /Rev.1  
 
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  10.5  Treatment of cases of loss of assets, fraud or unreco verable debt  
(a) The Director of Administration  and General Services Division may authorise write-off of 
cash, stores or other assets not exceeding the equivalent of 5,000 Swiss Francs  in each 
case to be written off if in his  or her judgement the cost of r ecuperating the loss would 
exceed the amount to be written off, or if it is very unlikely that action to recuperate 
the loss would be successful.  
 
(b) The Deputy Director -General in charge of Finance may authorize the writing -off of 
losses exceeding the e quivalent of 5,000 Swiss Francs , taking into account the 
constraints as per Financial Regulation 41.  
 
(c) All losses which are written off shall be included in the annual financial statements and 
submitted to the external auditor with the relevant accounts . The asset records shall be 
updated accordingly.  
 
(d) The Office of Internal Oversight shall  determine if  the responsibility for the loss, if any, 
should be assigned to a staff member  of the WTO.  A staff member held responsible for 
such loss may be  sanctioned up to the amount of the loss , irrespective of whether the 
loss is covered by insurance or not.  
 
(e) Any case of fraud, presumption of fraud or attempted fraud must be reported to the 
Office of Internal Oversight . 
 
(f) Amounts written off and subseque ntly recovered after the close of the financial period 
in which the writing -off occurred shall be treated as miscellaneous income.  
 
10.6  Accounting for donated property  
Goods received and accepted by the WTO as gifts or entrusted to the charge of the WTO, shall  be 
tracked and registered/recorded in the same manner as other goods acquired by the WTO.  
 
10.7  Disposal of surplus property  
Property, plant and equipment and intangible assets that are declared surplus, unserviceable or 
obsolete shall be disposed of according  to the policy authorized by the Deputy Director -General in 
charge of Finance.  
 
11  THE ACCOUNTS  
11.1  Responsibility for maintaining  and reporting  the accounts  
The accounts shall be maintained and presented by the Administration  and General Services Division 
as prescribed in Chapter X I of the Financial Regulations.  
 
11.2  Principal accounts  
In accordance with the International Public Sector Accounting Standards (IPSAS), financial 
statements submitted to the External Auditors for all accounts shall include:  
 
(a) Statement of financial position ; 
 
(b) Statement of financial performance ; 
 
(c) Statement of changes in net assets/liabilities ; 
 
(d) Cash flow statement (indirect method) ; WT/BFA/W/396/Rev.1  
 
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(e) A statement comparing budgeted and actual amounts;  
 
(f) Notes to the financial statements, comprising a summary o f significant accounting 
policies and other explanatory notes;  
 
(g) Separate statements and accounts for the Working Capital Fund and for any Trust 
Funds or Special Accounts.  
 
11.3  Accrual Basis accounting  
Unless otherwise directed by the particular terms governing  the operation of a trust fund or a 
special account, all financial transactions shall be recorded in the accounts on an accrual basis in 
compliance with the International Public Sector Accounting Standards (IPSAS).  
 
11.4  Archives  
Accounting and other financial records and all supporting documents shall be retained in 
accordance with the policy approved by the Deputy Director -General in charge of Finance after 
which they can be destroyed.  
 
 
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