RESTRICTED  
  
WT/BFA/ 156 
 
26 September  2016 
(16-5121)  
Committee on Budget, Finance and Administration   
 
  
 
REPORT OF THE MEETIN G HELD ON 16 SEPTEMB ER 2016  
The Committee on Budget, Finance and Administration (CBFA) met on 16 September 2016 under 
the Chairmanship of Ambassador Inga Ernstsone (Latvia). The Terms of Reference and 
composition of the Committee are set out in document WT/L/44/REV.1.  The agenda contained in 
document WTO/AIR/BFA/10 was adopted. Before opening of discussion of the approved agenda 
the Chairperson introduced the new Chief of the Office of Internal Oversight to the members of the 
Committee . 
1  WTO BUDGET AND FINAN CE REPORT – 2ND QUARTER 2016 – WT/BFA/W/397  
1.1.  An official  from the Secretariat presented the budget and finance report for the second 
quarter 2016.  The receipts of contributions from Membe rs as at the end of June 2016 were  at 
approximat ely the same level as the receipts in June 2015. At the end of the second quarter of 
2016, 43% of the Members had fully paid their annual contribution. With respect to the assessed 
amount of CHF 195 million, 61% was received. The receipts of contributions for the second quarter 
of 2016 from Observers amounted to CHF 304,177 representing 47% of the assessed amount. 
45% of the Observers paid their annual contributions in full. 69 Members  and 10 Observers, 
respectively, had no outstanding balance.  
1.2.  The Secretar iat presented the cash situation at the end of June 2016 and indicated that it is 
satisfactory and slightly above the level of June 2015. This balance also included  funds received for 
the Doha Development Agenda Global Trust Fund (DDAGTF) and the Enhanced Integrated 
Framework.  
1.3.  The Secretariat  informed the Committee that a s of 16 September 2016, five Members were 
subject to Category I of the Administrative Measures ; four Members were subject to Category II ; 
six Members were subject to Category III ; one Obser ver wa s subject to Category I ; two Observers 
were subject to Category II ; and one Observer was subject to Category III  (and wa s therefore 
considered inactive ).  
1.4.  The Secretariat presented the Consolidated Statement of Budgetary Expenditures as at 30 
June 20 16. The statement consist ed of three main parts: staffing resources; other resources;  and 
operating funds and ITC. The Secretariat indicated that the rate of expenditure as at 30 June 
2016, being CHF102 million, wa s 51% of that budgeted for the year.  
1.5.  The e xpenditure under Chapter A, Staffing Resources, was 47% of the  amount budgeted for 
the year. The Secretariat elaborated that the expe nditure for the regular salaries sub -category 
reflected the  fact that an average of 46 posts remained vacant during the fir st semester. This was 
compensated by the high rate of expenditu re under Temporary Assistance. The expectation is that 
a most of the vacant  posts will be filled d uring the remainder of the year.  
1.6.  The high level of expenditure under  General Services , being 80 % of the year's budget, stems 
from the fact that funds for services to be provided under contracts for the security outsourcing 
company, the cleaning contract, the International Computing Centre and the IT Service Desk were 
committed for the whole year. The Secretariat indicated that u nder Part C , Operating Funds and 
ITC, the full replenishment was effected for the three operating funds at the beginning of the year. 
The ITC contribution for the first 6 months was recorded.  
1.7.  The Committee took note of the rep ort. WT/BFA/ 156 
 
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  2  DOHA DEVELOPMENT AGE NDA GLOBAL TRUST FUN D (DDAGTF) AND OTHER  TRUST 
FUNDS – 2ND QUARTER 2016 - WT/BFA/W/398  
2.1.  The Secretariat present ed the financial situation for the second quarter of the Doha 
Development Agenda Global Trust Fund (DDAGTF) and other tru st funds.  
2.2.  It was indicated that the opening balance of the DDAGTF at the beginning of the year was 
CHF 16.9 million. Contributions as at the end of the second quarter amounted to 0.5 MCHF  whilst 
expenditures an d commitments totalled CHF 7.3 m illion. The o verall implementation rate for 
activities stood at 45% of the annual plan.  
2.3.  Concerning the LDC Ministerial Trust Fund, the Secretariat once again called upon the 
Members to invite their capitals to contribute to the LDCs Ministerial Trust Fund.  
2.4.   The Secret ariat emphasized that the Standards and Trade Development Facility ( STDF ) 
needs additional contributions to be able to continue approving and contracting new projects.  
2.5.  Concerning the other trust funds the Secretariat stated that they are generally in a stable 
position.  
2.6.   The Committee took note of the report.  
3  REVISION OF THE FINA NCIAL RULES OF THE W ORLD TRADE ORGANIZAT ION - 
WT/BFA/W/396  
3.1.  The Secretariat presented the revised financial r ules of the World Trade Organization. The 
Secretariat recalled that the financial rules were revised  last revised  in 2007 whilst the  financial 
regulation s were revised in February 2015 . The main purpose of the revision of financial rules was 
underlined : alignment with the financial regulations ; and compliance with IPSAS require ments. 
3.2.  It was stated that only few Chapters had significant changes: Chapter VI Presentation and 
Control of Claims, Chapter VII Payments, Chapter VIII Treasure Management, Chapter IX 
Procurement, Chapter X Property – to integrate the key elements of the as set disposal policy, 
Chapter XI The Accounts – to embody IPSAS requirements and accrual basis accounting.  
3.3.  A Member suggested providing a version of the revisions,  tracking changes on the last 
approved version of the financial rules, in order to aid review . The Secretariat said it would send 
the requested document to all Members.  
3.4.   One Member thanked the Secretariat for its work and proposed to send questions to the 
Secretariat in writing. A Member expressed support for this exercise and sought clarification  
regarding the follow up mechanism for the practical implementation of the changes in relevant 
areas, such as the Chapter on Procurement. Citing the performance audit recently undertaken for 
procurement, the Secretariat stated that the scope of internal an d external auditors often includes 
review of various practices and compliance with procedures.   
3.5.  Responding to a question, the Secretariat stated the int ention was to have the revised 
financial rules considered and endorsed by the CBFA for approv al by the General Council in 
December  2016 and to take effect in January 2017.  
3.6.  In closing, the Chairperson requested the Secretariat to send the slides that had been 
presented to the CBFA to Members.  
3.7.  The Committee took note of the presentation and agreed to discuss  the proposed revisions in 
detail during the next meeting of the CBFA.  
4  ACCESSION OF THE REPUBLIC OF LIBERIA TO THE WTO - WT/BFA/W/399  
4.1.  The Secretariat presented the assessed contribution for 2016 and the share of the Working 
Capital Fund following the acces sion of the Republic of Liberia on 14 July 2016. In accordance with 
Financial Regulati ons 12 and 25, respectively, the Committee makes the following 
recommendation:  WT/BFA/ 156 
 
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  4.2.  The Committee recommend s to the General Council that a pro rata contribution to 
the 2016 bu dget amounting to CHF 13,739 be assessed on the Government of the 
Republic of Liberia, as well as a contribution to the Working Capital Fund amounting to 
CHF 53,551 . 
5  ACCESSION OF THE ISL AMIC REPUBLIC OF AFG HANISTAN TO THE WTO - 
WT/BFA/W/400  
5.1.  The Secretariat  presented the assessed contribution and the share of the Working Capital 
Fund following the accession of the Islamic Republic of Afghanistan on 29 July 2016. In accordance 
with Financial Regulati ons 12 and 25, respectively, the Committee makes the followi ng 
recommendation:  
5.2.  The Committee recommend s to the General Council that a pro rata contribution to 
the 2016 budget amounting to CHF 24 ,231 be assessed on the Government of the 
Islamic Republic of Afghanistan , as well as a contribution to the Working Capita l Fund 
amounting to CHF 53,551 . 
6  PROGRESS REPORT ON T HE WORKING GROUP ON ASHI STRATEGY DEVELO PMENT  
6.1.  In the absence of the Chair of the Monitoring Group  (MG), his colleague presented an oral 
report on his behalf.  
6.2.  The Committee was informed that the Secretari at presented on the progress made in 
developing the ASHI Strategy , at the meeting s of 12th July and 12th September , and that particular 
regard was given to governance and administrative issues relating to ASHI and the Medical Plan, 
and the financing thereo f. The representative of the Chair of the MG informed the Committee that 
MG members appreciated the progress made by the Secretariat, indicating that the Secretariat had 
prepared a draft outline of the envisaged components of the ASHI Strategy.  
6.3.  The Commit tee's attention was drawn to four broad themes which the Strategy would cover.  
These are: Governance, management and a dministration; Consu ltation and reporting 
requirements; Cost control measures; and financing of ASHI liabilities.  
6.4.  On behalf of the MG, th e Presenter  thanked the Secretariat for the continuing efforts and 
requested receipt of a first draft of the Strategy as soon as possible . He informed the CBFA that 
would allow the MG to review and consider the document during the course of October and 
anticipat ed present ing it to the CBFA at its meeting in November.  
6.5.  A Member expressed appreciation of the work done and stated that the Members are looking 
forward to the development of the strategy. Chairperson expressed gratitude to the Working 
Group and the  Secretariat.  
7  MODES OF SUPPLY DATA BASE -EXTRA -BUDGETARY CONTRIBUTI ON 
7.1.  The Secretariat notified the Committee of a n offer from the EU to provide funding for 
extending  and improv ing the availability of trade data related to Modes of Supply under the 
General Ag reement on Trade in Services. The Secretariat informed the Committee  that the 
database  would leverage resources by facilitating further co -operation with other international 
organizations; the resulting improved data set would help to facilitate more accur ate analysis and 
monitoring of developments related to trade agreements; the data set would be an international 
benchmark and thus further enhanc e the WTO's reputation in the domain of trade statistics; and 
that the data set would encourag e countries to de velop their own projects, case studies, and/or 
survey amendments for improving their national statistics.  
7.2.  The Secretariat stated that in accordance with Regulation 19 of the Financial Regulations, the 
Committee was invited to provide its consent for the Se cretariat to receive  the proposed voluntary 
contribution since there was an  implied indirect cost to the WTO.  
7.3.  A Member asked for clarification of the aspect of  indirect cost. The Secretariat stated that the 
indirect costs would be minimal and mainly be re lated to the provision of a small working space.  WT/BFA/ 156 
 
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  8  REVISION OF THE ADAP TATION OF THE INFRAS TRUCTURE CONTRACT "C H, GE, WTO, 
FIPOI, ADAPTATION TO THE IN FRASTRUCTURE CONTRAC T, CANCELLATION AND 
CREATION OF THREE SU RFACE RIGHTS AND EAS EMENTS " - WT/BFA/W/298 REV 1  - 
WT/BFA/W/298 REV 1 S UPPL 1  
8.1.  The Secretariat recalled that the Infrastructure Contract was established at the moment of 
the creation of the WTO in 1995. The Present er indicated that only minor amendments had been  
made .  These includ e: updating the names of Representatives of the parties; changes to some 
dates; redenominating the number of easements following the numbers of the land register; and 
creating a pre -emption rig ht to the benefit of the Swiss C onfederation and of the Canton of 
Geneva, as per Swiss  law. The Secretariat informed the Committee that  these modifications had 
no effect on the legal value and meaning of the adaptation nor did they generate any substantive 
consequences for the WTO and its premises.  
8.2.  The Committee recommends that the General  Council take note of  the revised  
infrastructure contract document, bearing the reference WT/ BFA/W/298/ Rev.1.  
9  REPLENISHMENT OF LEA ST DEVELOPPED COUNTR IES MINISTERIAL TRUS T FUND  
9.1.  The Chairperson  once again called upon Members to invite  their capital s to contribute to the 
LDCs Ministerial Trust Fund , at their earliest convenience , to replenish it .  
10  OTHER BUSINESS  
10.1.   After conclusion of the formal agenda, the Chairperson invited the newly appointed Chief of 
the Office of Internal Oversight to introduce himself. T he Chief of the Office of Internal Oversight 
assured the Members of his independent and objective approach and invited the Members to 
engage him as necessary.  
10.2.   The Deputy Director General  in charge of Finance (DDG)  informed Members of three 
vacancy notices  for Directors of the following Divisions : Agriculture and Commodities ; 
Documentation and Information Management ; and  Trade in Services and Investment. The DDG 
called on members to assist in publicising the vacancy announcement in order to attract strong 
candidates . 
10.3.   The Chairperson closed the meeting and reminded the Committee that the next meeting will 
take place on 13 October 2016.  
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