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WT/BFA/171  
 
11 April  2018 
(18-1737) Page: 1/6 
Committee on Budget, Finance and Administration    
 
REPORT OF THE MEETIN G HELD ON 12 MARCH 2 018 
The Committee on Budget, Finance and Administration (CBFA) met on 12 March 2018 under the 
Chairmanship of Ambassador Peter BRŇO (Slovak Republic). The Terms of Reference and 
composition of the Committee are set out in document WT/L/44/REV.1. The Agenda is contained in 
document WTO/AIR/BFA/ 24. The following item s were included under "Any Other Business": 
Distribution of WTO documents; Cumulative  Budget ary Surplus es; Zero Nominal Growth budget; 
and the online meeti ng room reservations.  
 
1  2018 DRAFT WORK PLAN  FOR THE COMMITTEE ON  BUDGET, FINANCE AND 
ADMINISTRATION – WT/BFA/W/4 35 
1.1.  After having examined the document , some Members made comments on some areas 
relating to budget and administrative matters , which were not de picted in the draft work plan . As a 
result, the following topics will be added to the 2018 CBFA Work Plan : Dependency Allowances; 
Strategic Facilities Plan; and Proposal s by the Director -General on the Utilization of the Cumulative 
Budgetary Surplus . The Secretariat informed the Committee that a revised Work Plan would be 
circulated  after the meeting . 
1.2.  The Committee took note of this. 
2  THE SALARY SURVEY – WT/BFA/W/442  
2.1.  An official from the Secretariat presented the outcome of the annual salary survey pertaining 
to 2018, indicating that an adjustment of negative 1.17% was made to the WTO salary scale for 
2017 in order to determine the salary scale for 2018.  
2.2.  Further to inquiries from some Members, last year , regarding the impact of the potential 
salary reductions in the United Nations (UN), t he Official reported that a 0.6% increase had been  
made to the salaries of staff in the General Service category at the UN Office in Geneva. 
Furthermore, he indicated that a  significant reduction in the "Post Adjustm ent" factor for 
professional level staff in the U N in Geneva was the main contributor to  the 1.17% decline in 
comparator salaries. The official added that the decrease  in the  Post Adjustment factor result ed in 
a de facto 5% reduction to the UN professional  salaries.    
2.3.  The Official then informed the Committee that  UN staff members that were already employed 
by the organization before the most recent salary adjustments are currently in receipt of a special 
transitional allowance.  
2.4.  In addition, t he Official mad e reference to Appendix 3  of the document . Making reference to 
the very last table in this appendix,  the provisional salary scale for 2018,  he informed the 
Committee that the amounts depicted under the maximum salary column were to be corrected 
because the mid -point salary had inadvertently been copied into the table, instead of the 
maximum salary. One of the slides that the Official presented showed the correct ions to be made. 
He stated that the Secreta riat would issue a revision to the document to reflect the correct figures.  
2.5.  In conclusion, t he Official explained  the frozen salary scales would now be  four. 
2.6.  A Member asked why  the transitional allowance provided by the UN had not been taken into 
considera tion, when determining the comparator . The Official from the Secretariat responded that 
the salary adjustment methodology set out in Annex B of the Staff Regulations refers to the UN WT/BFA/171  
 
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  salary scales in effect on 1 January each year, whereas the transitional allowance was put in place 
in February 2018.  
2.7.  Two Members commended the Secretariat, observing that the document was more detailed 
and transparent compared to that which was submitted in the previous year .  
2.8.  One Member expressed concern to the fact that  the Secretariat was operating with  five 
different salary scales , resulting  in lack of salary  equity  for people doing the same job . He 
suggested that the Committee might wish to look into this question in the medium term.  
2.9.  The same  Member commented on the fact  that the salary scale presented as from 1st January 
2018, was indicated as being  provisional and thus  request ed the Secretariat to prepare a 
document with the finalized one and provide explanation on its implementation , indicating at which 
date it would b e effective ly applied . The same delega te concluded by requesting that the updated 
document be  circulated to the  Members .  
2.10.   Another Member requested for more transparency  regarding the different salary scales . He 
pointed out  that when the initial salary scal e was frozen, the expectation had been  that economic 
conditions would revert to the norm, with year -on-year increases anticipated in relevant indicators 
and the comparator . However, this had proven not to be the case. He stated that his estimations 
show that there were significant  difference s in salaries earned by people on the  same grade. As a 
case in point, he stated that the variance between Grade 6 salaries was very high . He said he 
wondered what the impact of this would be on future WTO budget s due t o the buffer resulting 
from the reduction to the salary scale .  
2.11.   The Committee took note of the 2018 Salary Survey .  
3  UPDATE ON THE WTO DE PENDENCY ALLOWANCES  
3.1.  An official from the Secretariat presented a brief update on the  subject of  WTO Dependency 
Allowanc es. He indicated that, in terms of the applicable amounts for 2018, the Secretariat had 
proceeded in accordance with the decision of the General Council in November 2017 . He stated 
that Annex 2 of the WTO Staff Rules, on which the amounts of the allowances  were set out, had 
been amended accordingly.  
3.2.  Based on a request from the Committee, t he Official made reference to the review of the 
methodology for the adjustment of the dependency allowance s, as reflected in document 
BFA/W/432 /Rev. 1.  He added that the Secretariat had prepared a proposal, in line with the views 
expressed by the CBFA. It was indicated that that proposal was under consultation , internally, and 
would be  review ed by the Joint Advisory Committee.  He stated that the  Secretariat would submit  a 
proposal from the Director -General for revising Annex 2 of the Staff Rules , regarding  the 
adjustment methodology.  
3.3.  The Official informed the Committee that a town hall meeting had recently been called to 
discuss this subject with staff members, at large.  At an earlier occasion, the Staff Council had also 
held a meeting to discuss th at topic. He informed  Members that a group of staff members  had 
written to the Director -General  asking him  to review the decision on setting the rates for 2018 . 
These requests were being assessed in accordance with  established process es as per the  relevant 
Staff Regulations and Staff Rules.  
3.4.  One Member thanked the Secretariat for the update and requested  that the Secretariat to 
include the subject of Dependency Allowances in  the 2018 Work Plan.   
3.5.  The Committee took note of the update .  
4  REVIEW OF OUTSTANDIN G CONTRIBUTIONS FROM  MEMB ERS AND OBSERVERS – 
WT/BFA/W/443  
4.1.  The Secretariat presented an overview of the situation with respect to Members' and 
Observers' contributions as at 31 December 2017. It was indicate d that the rate of contribution  in 
2017 was lower than that, at the same point, in 2016.  In 2017, the total amount received  was WT/BFA/171  
 
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  CHF 169.7  million , represent ing 87% of the assessed contribution. Furthermore, the Secretariat 
informed the Committee that the outstanding Members' contributions amounted to CHF 33.8 
million , pertaining to 48 Members.  
4.2.  As at 12th March  2018, 28 Members were subject to Administrative Measures , compared to 
33 at same perio d in 2016, representing a  total amount outstanding of CHF 6.9 million.  13 
Members were in Category I, 5 Members in Category II and 10 Members in Category III. The high 
number was mainly due to the fact that the year was only just beginning and 201 8 contributions 
were still to come in  from many Members . 
4.3.  On the Observers' side, it was reported that the receipt of contributions was in line with the 
experience  over previous years. 10 Observers had an outstanding balance at the end of 201 7. 
4.4.  The Secretariat repor ted that the outstanding Observers'  contributions amounted to 
CHF 590,219 at the end of 201 7. It was stated that as at 31 December 201 7, 5 Observers were 
subject to Administrative Measures for a total amount outstanding of CHF 629,693 . 3 Observer s 
were in Category I, and 2 Observer s in Category III . 
4.5.  One Member made reference to Annex 1  regarding  Administrative Measures , which states  
that Members under Category III are inactive. He enquired why two Members  had taken the floor 
at the last General Council  meeting, yet they had not been identified as falling under Category III 
as pr escribed in the Administrative M easures. The Secretariat  stated that it would address this  
appropriately . 
4.6.  The Committee took note of the re port and made the following reco mmendation:  
4.7.  The Committee invites the General Council to urge Members and Observers under 
Administrative Measures to liquidate their arrears.  
4.8.  The Committee took note of the report and endorsed the recommendation.  
5  SUSPENSION OF ADMINI STRATIVE MEASURES FO R CENTRAL AFRICAN REPUBLIC - 
WT/BFA/W/4 38 
5.1.  The Secretariat presented a document based on the Central African Republic' s request for a 
new payment plan to be established for the country , with a view to it settling its arrears over 30 
years , and a concomitant request by  the country that Administrative Measures  is subject to be 
suspended . The Committee made the following recommendation:  
5.2.  In accordance with the decision of the General Council of 15 November 2012, the 
Committee on Budget, Finance and Administration recommend s that the General Council 
suspend the application of Administrative Measures for the Central African Republic with 
the proviso that the Central African Republic undertakes, in writing, to abide by the 
schedule of instalment payments for liquidating all it s arrears over a period of 30 years. 
In addition, the Central African Republic should pay its annual contributions for each 
year henceforth. The payments must be received no later than 31 December of each 
year, starting in 2018, failing which the administr ative measures will be reinstated.  
5.3.  The Committee took note of the report and endorsed the recommendation.  
6  OFFICE OF INTERNAL O VERSIGHT – REPORT ON THE ACTIVI TY PLAN FOR 2017 -2018 
– WT/BFA/W/4 39 
6.1.  The Head of the Office of Internal Oversight (OIO) presented  an update of the 
implementation of the recommendations proposed in the internal audit reports. He informed the  
Committee  that the annual report of the Office of Internal Oversight  would be presented to the 
CBFA in June 2018.  
6.2.  The Head of OIO presented a tabl e showing that, as of February 2018, 75% of the internal 
audit recommendations had been successfully closed, 19% were currently being implemented as 
work was in progress and only 6% remained open.  WT/BFA/171  
 
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  6.3.  The Head of OIO thanked the Human Resources Division (HRD) and made reference to the 
fact that the division had closed 8 out of the 11 recommendations contained in the audit report on 
Home Leave Entitlements. He added that HRD was working on a new policy on Home Leave and 
Family Visits, which would be finalized in  the near term.  
6.4.  The Head of OIO informed the Committee about the initiative of the OIO to also closely 
monitor the status of the recommendations contained in the External Evaluation Report on Trade 
Related Technical Assistance (TRTA). He informed the Commi ttee that a new line would be added 
to the table to include the status of the TRTA recommendations.  
6.5.  One delegation expressed concerns regarding the slow pace of implementation of 
recommendations relating to IT Security. He added that this is a critical ar ea that represents high 
risk factors. He requested the OIO to insert, in its future reports, the timeframe for 
implementation, as well as the perceived level of risk, for each of the pending recommendations, 
with a prioritization of implementation of recom mendations relating to high risk areas.  
7  STATUS UPDATE ON EXT ERNAL AUDIT FINDINGS  – WT/BFA/W/441  
7.1.  A member of the Secretariat presented an update on the status of implementation of External 
Audit recommendations. He indicated that the report was based on va rious audits conducted from 
2015 to 2017. He added that in the last update  to the CBFA , the WTO had 20 recommendations 
pending out of a total of 44 issued since the German Supreme Audit Court had commenced its 
mandate.  Since then the Secretariat ha d made s ubstantive progress in implementing relevant 
actions. All recommendations related to the 2015 audit had been implemented and only one 
recommendation related to the 2016  audit, pertaining to confidentiality of information, was still 
outstanding . 
7.2.  The Officia l underlined that out of the 13 new recommendations issued during the 2017 
audit, the Secretariat ha d implemented 11  and was awaiting final closure of these by external 
auditor in April  2018. 
7.3.  In conclusion, the Official indicated that the three pending recommendations were  related to 
enhancing confidentiality of information and would be partially addressed through the Security 
Project as well as the implementation of Confidentiality of Information Policies , currently being 
worked on by the Secretariat .  
7.4.  Two Member s took the floor to thank the Secretariat for the update . Nevertheless, they 
expressed concerns that the information contained in the document was limited. They stated that 
a more detailed report , akin to that prepared by the OIO, would be preferable .  
7.5.  In response, an Official of the Secretariat highlighted that the update on external audit 
recommendations was different from that of the internal audit because the e xternal auditors had 
submitted a detailed table of observations and recommenda tions as part of the External Audit 
Report  for 201 6, including the audit of the financial statements and performance audits on select 
areas of the WTO.  He recalled that the quarterly report was geared towards providing a brief 
status update to the Committ ee. 
7.6.  Another Official stated that the External Auditors would include a detailed report in their audit 
report for 2017 .  
7.7.  In conclusion the Secretariat undertook to provide some additional information such as the 
risk assessment of audit observations and the  prioritization and target implementation date of 
recommendations . 
7.8.  The Committee took note of the report.  
8  UPDATE ON AFTER SERV ICE HEALTH INSURANCE  (ASHI) – WT/BFA/W/440  
8.1.  An Official from the Secretariat presented the report , with emphasis on  the newly established 
Special Reserve Account (SRA).  The Official noted that for the first time in many years there was 
no active ASHI rel ated working group.  He indicated that the SRA would  have approximately WT/BFA/171  
 
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  CHF 1.4 million from savings on the regular bu dget for the Medical Plan and an add itional 
CHF 200,000 linked to staff funded by extra -budgetary resources.  
8.2.  A Member welcomed the report and asked whether the attribution of contributions to the 
SRA, as outlined in paragraph 2.2 of document WT/BFA/W/440,  distinguishing efficiency gains 
from budget savings, would not result in duplication of effort. The Official from the Secretariat 
stated that this detail had been provided because it was possible to get the distinct information 
this year given the terms o f the contract with the health insurance  provider.  
8.3.  A Member reiterated the importance of ASHI and the need to find a long -term viable solution 
for this issue. She welcomed the current report and said that she looked forward to more detail in 
future reports .  
8.4.  The Official informed the Committee that a second ASHI update report would be presented in 
the A utumn  as at that point  claims data under the new plan administrator would have been  
reviewed and analysed .  That update report would  focus more on benchmarks  and indicators of the 
Medical Plan's performance and the Secretariat's focus on cost containment.  
8.5.  The Committee took note of the report.  
9  APPOINTMENT OF THE C BFA CHAIRPERSON  
9.1.  The Chair recalled that the General Council, at its meeting in March, had approved  a slate of 
names of appointees to lead the various WTO standing Committees. On the basis of the 
understanding reached, he proposed that the Committee formally elect His Excellency Ambassador 
Juan Esteban Aguirre Martínez,  Ambassador of Paraguay to the WTO, as the new Chairperson of 
the Committee.  
9.2.  The Committee so agreed , by acclamation . 
9.3.  The outgoing Chair expressed his thanks to the Senior Management and to the members of 
the Secretariat for their open approach and profess ional engagement as well as the support the y 
provided during his mandate. He also extended his thanks to the Members for the  cooperati ve 
atmosphere and  their constructive approach to resolving issues throughout his tenure.  
9.4.  The new Chair, His Excellency Amb assador Juan Esteban Aguirre Martínez , assumed his role . 
In addressing the Committee , he stated that he  felt honoured by the trust being vested in  him, 
and congratulated the outgoing Chair for his effective work.  
9.5.  The Secretariat thanked the outgoing Chair for his leadership.  
10  ANY OTHER BUSINESS  
10.1.   Regarding distribution of WTO documentation, one Member expressed gratification about 
how well the WTO E -registration System  is working . He asked  the Secretariat to  look into the 
possibility of developing  an email system  in order to stop sending some documents via facsimile . 
He shared that this approach was considered in the CTNC Division  and could be  extended to  other 
Division s.  
10.2.   DDG Brauner thanked the Member for his valuable suggestion and indicated that he would  
seek information from the relevant  division.  
10.3.   The same delegate suggested that the Secretariat review  the structure of the WTO. He 
highlighted that WTO requisites  had changed over time and needed to be re -examined. He said 
that optimal use of resources is  of great importance  considering the  Zero Nominal Growth budget.   
10.4.   The Secretariat took note of these suggestions.  
10.5.   The Secretariat informed the Committee that an online reservation system for meeting 
rooms had been  launched shortly before MC11. Due to the success of this system, it had been WT/BFA/171  
 
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  extended to be used for all meeting reservations. The uptake i s good, with 276 requests to date. 
This has brought improved turnaround times. Members were requested to use this system instead 
of sending emails or telephon ing. 
10.6.   The next meeting will take place on the 26th of April . 
10.7.   The meeting was adjourn ed. 
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