RESTRICTED  
  
WT/BFA/W/ 408 
14 February  2017 
(17-0856) Page: 1/6 
Committee on Budget, Finance and Administration   
 
  OFFICE OF INTERNAL O VERSIGHT  
 
REPORT ON THE ACTIVITY PLAN  FOR 2017 -2018  
1  BACKGROUND  
1.1.  The Office of Internal Oversight (OIO)  was established in November  20151, following the 
recommendations of the External Auditors and the conclusions of the Working Group on Rules in 
the Strategic Review that there was a need to reinforce the independent status of the Office of 
Internal Audit (OIA) and expand its responsibilities to include investigations.  
1.2.  The OIO is in charge of conducting i nternal audits, investigations and any other form of 
assessment that may be needed  in respect of management , staff and resources of the WT O; and 
to provide for a professional, independent, objective and documented assessment of management 
practices, expenses, budgetary control and allegatio ns of misconduct.  
1.3.  In the first section of this report , the Head of the OIO confirms the independence  of the 
Internal Oversight activity at WTO . Subsequently, t he document presents for information to the 
Committee on Budget, Finance and Administration (CBFA ) the staffing, budget and  activity  plan of  
the OIO for the period January  2017 to December  2018. 
2  INDEPENDENT STATUS O F THE OFFICE OF INTE RNAL OVERSIGHT  
2.1.  The International Standards for the Professional Practice of Internal Auditing (hereafter 
referred to a s the IIA Sta ndards )2 require the OIO to  remain  independent and free from 
interference when  performing its work.  
2.2.  IIA Standard 1110 , Organizational Independence, indicates that the Head of the OIO must 
report to a level within the organization that allows t he internal oversight activity to fulfil its 
responsibilities . Additionally, the Head of the OIO must confirm to the CBFA, at least annually, the 
organizational independence of the internal oversight activity.  
2.3.  The Administrative Memorandum No.9741 establis hes the framework  for the independence of 
the OIO:  
 The OIO is an operationally independent office inside the WTO Secretariat . The Head of the 
OIO and other OIO staff are functionally and operationally independent from the Secretariat 
and from WTO Members i n the conduct of their duties . In the exercise of their duties, they 
may neither seek nor accept any instruction from any person or entity outside the OIO, 
whether this person or entity is within or outside the WTO.  
 Neither the Director -General nor any oth er WTO staff member may seek to influence or 
otherwise inte rfere with the work of the OIO.  
 The Head of the OIO and other OIO staff must, at all times, ensure that their conduct is 
compatible with the objectivity and independence required by their functions . 
                                                
1 Administrative Memorandum No.974, Office of Internal Oversight, OFFICE(15)/101, 
30 November  2015. 
2 The International Standards for the Professional Practice of Internal Auditing , promulgated by the 
Institute of Internal Auditors (IIA) , provide a principle -focused and mandatory framework for performing and 
promoting internal auditing – See: https://na.theiia.org/standards -guidance . WT/BFA/W/408  
- 2 - 
   Following the completion of each audit, evaluation, inspection or investigation, the OIO shall 
submit a report to the Director -General, and to other staff members as appropriate.  If the 
Director -General, a Deputy Director -General or a member of the Offic e of the Director -General 
is the subject of the report, the OIO shall also submit its report to the Chairs of the General 
Council and of the CBFA.  
 The OIO shall report annually to the CBFA, providing an overview of its activities during the 
year. The OIO m ay in that report indicate any circumstances that it considers may have 
affected its independence or otherwise impeded its ability to fulfil its functions.  
2.4.  The Head of the OIO certifies that no circumstances have affected , in fact or appearance,  the 
indepe ndence of the OIO or impeded its ability to effectively carry out the responsibilities of the  
OIO in an unbiased, objective and independent manner . 
2.5.  The OIO has received full and unrestricted access to all WTO records and staff members . The 
Head of the OIO has frequent, direct and unrestricted access to the Director -General, s enior 
management and the Chair of the CFBA.  
3  STAFFING AND BUDGET  
3.1.  In accordance with IIA Standard 2030, Resource Management , the Head of the OIO must 
ensure that internal oversight  resour ces are appropriate, sufficient, and effectively deployed to 
achieve the Internal Oversight  work plan. 
3.2.  As stated in the Administrative Memorandum No.974, the OIO has its own operational 
budget . This operational budget is determined by the Director -General,  upon the entry into 
function of each new Head of the OIO, further to a recommendation of the latter . The operational 
budget of the OIO may not be diminished throughout the tenure of the Head of the OIO, unless 
otherwise agreed between the Head of the OIO,  the Director -General and the Chairs of the General 
Council and of the CBFA.  
A. Staffing  
3.3.  The OIO is currently composed of the Head of Office (Grade 10) and an Administrative 
Assistant (Grade 4).  
3.4.  The benchmarks provided by the Joint Inspection Unit (JIU)3 were used to assess the 
appropriate  staffing level for the OIO.  
3.5.  According to the benchmarks, the OIO should be composed of at least three Internal 
Oversight professionals , including  the Head of Office,  one Internal Auditor and one Investigator.   
3.6.  Unlike most  organizations referred to in the JIU's benchmarks, the WTO does not have 
regional or field offices outside Geneva  and is funded predominantly by regular budget.  Therefore, 
the OIO will hire one Internal Oversight professional (Grade 6) in 2017, instead of  two, based on 
the zero nominal growth  of WTO's budget for 2017 , the current  ceiling in the number of staff  at 
WTO, and the necessity for  the Human Resources Division to prioritize the allocation of additional 
resources amo ng several requesting Divisions . 
3.7.  In accordance with the IIA Standards, t he Head of the OIO will continue assess ing the 
staffing requirement  of the office , and report to the CBFA , annually . 
3.8.  Since the process for hiring  the Internal Oversight professional (Grade 6)  may take several 
months , the OIO is  also explor ing the possibility of contracting a s hort-term consultant  or an 
internal candidate (through internal mobility).  
                                                
3 JIU Reports JIU/REP/2010/5, The audit function in the United Nations system, 2010, and 
JIU/REP/2011/7, The Investigations function  in the United Nations system, 2012. Since the JIU reports are not 
recent,  the benchmarks were updated with current figure s for the UN Organizations of a similar size than WTO 
(in terms of budget and staffing, such as ITU, UNIDO and WIPO).  WT/BFA/W/408  
- 3 - 
  B. Budget  
3.9.  The General Council approved the budgets for the biennium 2016 -20174 on 
30 November  2015. In line with the  additional resources re quested  by the Head of the OIO, the 
Director -General has decided to allocate the following budget to the OIO for 2017 : 
Table 1: Budget of the Office of Internal Oversight for 2017  (in CHF)  
Account Description  Budg et 2017  
Staff / Salary (including pension)  410,900  
Special Service Agreement s  15,000  
Air & Rail Transportation  8,000  
TOTAL  433,900  
 
3.10.   In order to reinforce the independence of the OIO, a separate budgetary line has been 
allocated for Special Service Ag reement s. Should the OIO require additional budget for Special 
Service Agreement s, the request of the Head of the OIO shall be submitted to the Director of the 
Administration and General Services Division ( AGSD ) according to the established WTO procedure . 
3.11.   Every year, the Head of the OIO will assess the resources  needed to achieve the Internal 
Oversight activity  plan. The budget of the OIO for 2018  will be determined taking in consideration  
this assessment.  
4  OIO'S ACTIVITY  PLAN FOR 2017 -2018 
4.1.  According to the IIA Standard 2010, Planning , the Head of the OIO must establish a 
risk-based plan to determine the priorities of the internal oversight  activity . 
4.2.  The OIO's risk-based activity  plan is mainly derived from the WTO 's Secretariat  risk register 
maintained by AG SD, input from  senior management , and International Professional Practices 
Framework (IPPF) requirements . 
4.3.  The risk management policy for WTO's Secretariat was established in 2012 . Since then, the 
WTO maintains a risk register where risks that could affect achievement of the Secretariat's 
objectives are periodically identified, analysed and monitored . The OIO has analysed the risk 
register ( last updated in November  2016) and reviewed the mitigation measures that have been 
proposed for reducing the identified  risks to acceptable levels.  
4.4.  The OIO focusse d on th ose risks perceived as ''high'' or ''moderate'' (in terms of likelihood or 
impact ), for which the OIO could bring added value in the identification and implementation of 
mitigating internal controls . 
4.5.  As a complement to the Secretariat's risk register, the OIO compiled an inventory of all 
potential areas of audit in the WTO (audit universe), and reviewed related key indicators (e.g. 
budget, staffing, investigation cases, and last audits ). 
4.6.  The OIO also consul ted the Director -General 's Office, the Deputy Directors -General, several 
Divisional D irectors  and Managers , representatives of the Staff Council , and the Chair of the CBFA , 
to obtain  an understanding of the Organization 's key challenges , priorities  and risks. The OIO's  
activity p lan for 2017 -2018 has been  adjust ed, in response to the risks, priorities and expectations 
expressed by  the persons  interviewed . 
                                                
4 WT/GC/M/160. WT/BFA/W/408  
- 4 - 
  4.7.  The requirements of the  International Professional Practices Framework (IPPF)5 were also 
considered when establishing the activity p lan for 2017 -2018.  
4.8.  Finally, t he OIO's activity p lan was communicated and discussed with the External Auditor s, 
in order to ensure coordination and complementarity , and to avoid duplication of activities . 
4.9.  Based on the above -mentioned  risk-based approach, the OIO  has identified the following 
objectives  for 2017 -2018:  
1) Solidify OIO's foundations  (20%); 
2) Complete  the assignment s included in the OIO's internal audit plan for 2017 -2018 (50%); 
3) Conduct i nternal investigations  (15%); and 
4) Provide other support and advice to management, staff and stakeholders  (15%). 
Objective  1: Solidify OIO's foundations  
4.10.   As indicated, t he Office of Internal Oversight (OIO)  was established in November  2015. And 
the current Head of the Office was appointed in September  2016. 
4.11.   In order to promote a sound internal control environment in the WTO, and to reinforce the 
role of the OIO, the following activities will be conducted:  
 Define the Internal Oversight Charter , which constitutes the framework within  which the 
Internal Oversight function of the WTO will operate;  
 Finalize the procedure for administrative investigations and disciplinary actions;  
 Finalize the anti -fraud policy, in collaboration with the Legal Counsel to the Administration, to 
promote an maintain a culture of integrity and honesty at WTO, and to combat acts of fraud 
and corruption against the WTO ; 
 Enhance the visibility of the OIO (e.g. dedicated page on WTO's website and intranet, 
induction program me for newcomers) , to explain the mandate  and the role of the OIO to staff 
members and external parties;  
 Conduct a quality self -assessment, to evaluate the  performance and conformance of OIO's 
activity with the IIA  standards ; and 
 Reinforce the capacity and capability of OIO's team , if required . 
Objective 2 : Complete  the assignments included in the OIO's internal a udit plan 
4.12.   Following a risk -based approach, the OIO has established a list of internal audit assignments  
to be conducted in 2017 -2018 (see Table 2). 
4.13.   In order to r emain relevant, the  internal audit plan will be reviewed  at least annually , and 
may need to be  adapt ed in response to changing risks, priorities and expectations at WTO.  
4.14.   The OIO will report annually to the CBFA, providing an overview of its activities duri ng the 
year and the status of the different assignments included in the i nternal audit plan.  
                                                
5 The International Professional Practices Framework (IPPF) is the conceptual framework that organizes 
authoritative guidan ce promulgated by the IIA . WT/BFA/W/408  
- 5 - 
  Table 2: Internal audit p lan for 2017 -2018  
Audit subject  Source  Audit Scope/Objective  2017  2018  
Management of Home 
Leave  Fraud case  
Mana gement 
Request  Compliance with policy . Review of the 
economy, efficiency and effectiveness of 
processes and internal controls . 
Calculation of Home Leave entitlements . 
Analysis of cost variations and trends.  x  
Procurement  Risk Register  
CBFA 
 In 2017 : The OIO will focus on 
procurement fraud prevention (through 
workshops/trainings), since the External 
Auditors conducted an audit of 
procurement in 2015 and the revised 
WTO Financial Rules and new 
Procurement Manual are being 
implemented.  
In 2018 : The interna l audit will include 
the assessment of processes and 
internal controls ; and the review of the 
implementation of the new Procurement 
Manual and of Chapter IX of the revised 
Financial Rules.   x x 
Policies on gifts, 
gratuities and outside 
activities (includi ng 
Conflict of interest)  Risk Register  
 Assessment of policies related to:  
- Acceptance of gifts, gratuities or other 
favours from vendors or outside parties;  
- Remunerated outside activities of staff 
members;  
- Management of Staff Assistance Fund;  
- Safeg uards for preventing potential 
conflicts of interest of staff members, 
interns, panellists, appellate body 
members and WTO Experts (e.g. : 
Statement of Financial Disclosure);  
- Post-employment obligations.  x  
Education Grant  Management 
Request  Compliance w ith policy . Review of the 
economy, efficiency and effectiveness of 
processes and controls . Calculation of 
allowances.   x 
Enterprise Risk 
Management  IIA Standards  Analysis of how risks are assessed, 
managed and mitigated at WTO (risk 
management process and  register).   x 
Access rights in 
Oracle E-Business 
Suite (Enterprise 
Resource Planning)  
 Risk Register  
IT Security audit  Review of security processes and 
measures, analysis of access 
rights /permissions  and segregation of 
duties in Oracle (ERP).   x 
Informa tion Security 
Governance  Risk Register  
Management 
Request  Gap analysis and roadmap for 
implementing the international standard 
ISO27001 ( Information security 
management system ).  x 
Follow up of 
recommendations 
made in the 
Trade -Related 
Technical Assistanc e 
(TRTA) external 
evaluation  Risk Register  
Management 
Request  Independent review of the 
implementation of the recommendations 
stated in the WTO TRTA external 
evaluation report (Saana Consulting, 
31 October  2016). Special focus on the 
Monitoring and Evalua tion function.  x x 
Follow up of audit 
recommendations  IIA Standards  Periodic review of the implementation of 
internal audit recommendations.  x x 
Ad hoc audits, if any  - To be determined  - - 
 WT/BFA/W/408  
- 6 - 
  Objective 3 : Conduct internal i nvestigations  
4.15.    The OIO is the exclusive entity responsible for investigating allegations of violations of any 
WTO norm applicable to Staff members, irrespective of the nature of their contracts, and for 
transmitting to the Director -General6 the results of such investigations together w ith 
recommendations on action to be taken.  
4.16.   The OIO, with support from the Legal Counsel, will develop a case management system to 
record  all the allegations  that have been reported, considered, investigated and/or  finalized  in the 
last 3 years.  
4.17.   The OIO wil l conduct investigations  in accordance with WTO's procedures  and the  "Uniform 
Principles an d Guidelines for Investigations " endorsed by the Conference of International 
Investigator s and the United Nations Representatives of Investigative Services  (UN-RIS). 
Objective 4 : Provide other support and advice  
4.18.   The OIO will, upon request, advise managers on the effective discharge of their 
responsibilities,  and provide assistance to managers and staff members in implementing 
recommendations.  
4.19.   The OIO will also coordin ate its work with the External Auditors , and promote frequent and 
fruitful communication and cooperation with them.  
4.20.   Finally, the Head of the OIO will represent the WTO in international professional forums 
(e.g. Representatives of  Internal Audit Services (R IAS) and Representatives of Investigative 
Services (RIS)).  
 
__________  
                                                
6 Or in the case of an alleged violation by the Director -General, a Deputy Director -General, or a member 
of the Office of the Director -General, to the Chairs of the General Council and of the CBFA.