RESTRICTED  
  
WT/BFA/W/396  
 
5 August  2016 
(16-4189) Page: 1/18 
Committee on Budget, Finance and Administration    
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVISION OF THE FINANCIAL RULES  
 
OF THE  
 
WORLD TRADE ORGANIZA TION  WT/BFA/W/396  
 
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  TABLE OF CONTENTS  
 
1   AUTHORITY AND APPLIC ABILITY  ................................ ................................ ................  5 
1.1   Reference  ................................ ................................ ................................ .................  5 
1.2   Applicability  ................................ ................................ ................................ ..............  5 
1.3   Responsibility for implementation  ................................ ................................ ................  5 
1.4   Additional instructions to be issued by the Deputy Director -General in charge of 
Finance  ................................ ................................ ................................ ...........................  5 
1.5   Responsi bilities of the Director of Administration and General Services Division  ..................  5 
1.6   Approaches outside the WTO  ................................ ................................ .......................  5 
1.7   Responsibility for funds from external sources  ................................ ...............................  5 
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  ................................ ...............  6 
2.3   Furnishing of c ost estimates  ................................ ................................ ........................  6 
3   COLLECTION OF CONTRI BUTIONS AND OTHER IN COME  ................................ ..............  6 
3.1   Responsibility for collection of contributions  ................................ ................................ ... 6 
3.2   Accounting for receipts  ................................ ................................ ...............................  6 
3.3   Miscellaneous income  ................................ ................................ ................................ . 6 
3.4   Proceeds from the sale of property, plant and equipment  ................................ ................  6 
3.5   Acceptance of funds for the WTO  ................................ ................................ .................  7 
4   APPROPRIATI ONS AND ALLOCATIONS  ................................ ................................ ........  7 
4.1   Responsibility of the Deputy Director -General in charge of Finance for the 
implementation of the approved budget  ................................ ................................ ...............  7 
4.2   Responsibility of the Director of Administratio n and General Services Division to 
allocate appropriations in accordance with the Functional Budget  ................................ .............  7 
4.3   Periodic review of the expenditure position  ................................ ................................ .... 7 
4.4   Transfers between items within the a pproved budget  ................................ ......................  7 
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 b udgetary implications  ................................ .... 7 
5.3   Control of obligations  ................................ ................................ ................................ . 8 
5.4   Obligations to be incurred in conformity with the budget  ................................ .................  8 
5.5   Objection to proposed obligations  ................................ ................................ ................  8 
5.6   Adjustments of obligations  ................................ ................................ ..........................  8 
6   PRESENTATION AND CON TROL OF CLAIMS  ................................ ................................ . 8 
6.1   Payments to be made on the basis of claims  ................................ ................................ .. 8 
6.2   Support ing documents of Claims  ................................ ................................ ..................  9 
6.3   Time-limits for the presentation of claims  ................................ ................................ ...... 9 
6.4   Control of claims  ................................ ................................ ................................ ....... 9 
6.5   Claims to be accompanied by receiving reports  ................................ ..............................  9 WT/BFA/W/396  
 
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  6.6   Safeguards  ................................ ................................ ................................ ..............  10 
6.7   Objection to a claim  ................................ ................................ ................................ .. 10 
7   PAYMENTS  ................................ ................................ ................................ ................  10 
7.1   Vouchers to support payments  ................................ ................................ ...................  10 
7.2   Payme nts to be made to duly entitled persons  ................................ ..............................  10 
7.3   Officials authorized to make payments and designation of cashiers  ................................ .. 10 
7.4   Staff remuneration, reimbursement, and recoverables  ................................ ...................  11 
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   Responsibi lity for payments  ................................ ................................ .......................  12 
7.9   Payments through third parties  ................................ ................................ ...................  12 
7.10   Ex gratia payments  ................................ ................................ ................................ . 12 
7.11   Payments by official credit card  ................................ ................................ .................  12 
8   TREASURY MANAGEMENT  ................................ ................................ ..........................  12 
8.1   Treasury management  ................................ ................................ ..............................  12 
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 
9   PROCUREMENT  ................................ ................................ ................................ ..........  13 
9.1   Authority and responsibility  ................................ ................................ ........................  13 
9.2   Competitive bidding an d 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  ................................ ................................ ................................ ........  15 
10   PROPERTY  ................................ ................................ ................................ ...............  15 
10.1   Authority and Responsibility  ................................ ................................ .....................  15 
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  ................................ .. 16 
10.6   Accounting for donated propert y ................................ ................................ ...............  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   Subsidiary accounts  ................................ ................................ ................................  17 
11.4   Accrual Basis accounting  ................................ ................................ ..........................  17 WT/BFA/W/396  
 
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  11.5   Archives  ................................ ................................ ................................ ................  17 
APPENDIX  ................................ ................................ ................................ ......................  18 
Decision of the General Council of 11 July 1995 (WT/GCM/5)  ................................ .................  18 
on the procedure for decisions having financial implications  ................................ ...................  18 
which may be taken by WTO Bodies  ................................ ................................ ...................  18 
 WT/BFA/W/396  
 
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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).  
 
The General Council shall approve revisions of these Rules.  
 
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 approved by the Director -General.  
 
1.3  Responsibility for implementation  
The Deputy Director -General in charge of Finance is responsible to the Director -General for the 
application and implementation of these Rules.  He may delegate any specific authority vested in him 
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 efficiency. 
No changes in such instructions or procedures shall be made without the ap proval of the Deputy 
Director -General in charge of Finance.  
1.5  Responsibilities of the Director of Administration and General Services Division  
The Director of Administration and General Services Division is responsible to the Deputy Director -
General in charg e of Finance for the performance and/or supervision of all budgetary, financial and 
accounting operations.  
1.6   Approaches outside the WTO  
No approach shall be made outside the WTO or within the WTO with a view to obtaining funds or 
resources, or exemptions fr om existing financial regulations, rules or provisions of the WTO, 
except with the prior written author ization of the Director -General.  
1.7  Responsibility for funds from external sources  
No official may accept responsibility for the handling or management of f unds belonging to a 
government, or to any other body of an official or quasi -official nature with which he is associated 
by reason of his status as a WTO official, unless he has been specifically authorized in advance to 
do so on the basis of a decision by  the Director -General.  
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.  
 WT/BFA/W/396  
 
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  2.2   Responsibility for the preparation of the budget proposals  
The Deputy Director -General in charge of Finance, with the 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 included in the budget pro posals and budget documents for submission to 
the Committee on Budget, Finance and Administration and to the General Council.  For this 
purpose he shall establish such procedures, criteria and deadlines as may be required to assure 
the timely presentation of sound and realistic budget proposals conforming 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 connectio n with the activities of the WTO including 
estimates 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 Di rector of the Administration and General Services 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 collecting and accounting for contributions due from 
Members, 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 de lay possible.  Assessed 
contributions received by the WTO shall be accounted  for 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 WT O, shall be kept in a suspense 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 presented in 
Annex C . 
3.3   Miscellaneous income  
In accordance with Regulation 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 exc hange;  
(c) savings on previous year's outstanding obligations;  
(d) overhead on Trust Funds;  
(e) receipts from the rental of meeting rooms and office space;  
(f) assessments from Observer Countries;  
(g) refunds of expenditure of prior financial periods;  
(h) WTO cheques remaining un cashed for a period of twelve months after the date drawn;  
(i) other receipts.  
3.4  Proceeds from the sale of property, plant and equip ment  
(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 loss 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.  WT/BFA/W/396  
 
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  3.5   Acceptance of funds for the WTO  
(a) 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 charg e of Finance is responsible to 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 Director of Administration and General Services Division to 
allocate appropr iations 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 divisions 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 used 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 divi sional expenditures and 
unliquidated obligations recorded against their respective division allocations provided 
under the Functional Budget.  
(c) The budgetary reporting to the Members shall be performed as determined in Financial 
Regulation 37. However, if th e scheduling of CBFA meetings does not allow 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 finan cial period.  Transfers between items within the approved budget are authorized in 
accordance with Regulation 21 of the Financial Regulations .  
5  CONTROL OF OBLIGATIO NS 
5.1  Obligations to be incurred only by duly authorized officials  
No contract shall be conclud ed 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 im plications  
(a) Any draft paper for the General Council which contains a proposal likely to have direct or 
indirect financial or budgetary implications shall be referred for financial evaluation and 
clearance by the Director of Administration and General Servic es Division, in writing, by 
the Director of the  concerned Division  before being submitted to the Deputy Director -
General in charge of Finance  for his approval . WT/BFA/W/396  
 
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  (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 Divis ion 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 appl icable financial regulations and 
rules, the approved budget, and the available balances in the respective allocations.  He 
shall also assure himself that the principles of sound economy are maintained.  If the 
obligating document conforms with the above re quirements, 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 by 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 incurre d in confor mity 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 classification. 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 cannot approve an obligatin g 
document submitted for certification he shall state his 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 Finance for decision.  
5.6  Adjustments of obl igations  
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 CON TROL OF CLAIMS  
6.1  Payments 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, unless claimed by the payee.   
(b) Payments d ue 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 submitted, 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.  WT/BFA/W/396  
 
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  6.2   Supporting documents of Claims  
(a) Claims submitted for payment must include supporting 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 withi n one month.  
(b) Claims in respect of officially authorised travel shall be submitted within one month after 
such travel has been completed.  
(c) Claims for overtime should be submitted within one week after such overtime has been 
completed.  
(d) Claims involving disco unts for prompt payment shall be flagged and shall be processed 
within the discount deadline.  
(e) Payment of claims that do not respect the deadlines set in paragraphs (a), (b), (c), or 
(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 maintain records of all claims processed for payment.  
(b) No claim shall be authorised fo r 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.  
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 certify claims together with a certified 
receiving report stating whether the goods or service s 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 ERP.  
(c) The Deputy Director -General in charge of Finance may waive the requirement of 
receiving reports in the case of standard services such as public utilities, etc.  
(d) For goods delivered to a place outside G eneva, 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 immediatel y upon receipt of goods.  
(e) In the case of Rule 6.5(d) the official forwarding the claim shall certify that the goods 
were dispatched with appropriate insurance coverage.  WT/BFA/W/396  
 
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  6.6   Safeguards  
(a) Officials authorised to incur obligations and the officials authorised to ce rtify claims shall 
take all necessary steps to avoid duplicate payments of claims.  
(b) Except where this is unavoidable, no official shall be assigned simultaneously any two of 
the following functions: purchasing and/or acceptance of goods or services, control ling or 
disbursing.  
6.7   Objection to a claim  
(a) When the Director of Administration and General Services Division or any duly authorised 
official objects to the payment of a claim in full or in part, he shall communicate his 
objection to the official presenting the claim. If the official does not agree with the 
objection, he may appeal in writing to the Deputy Director -General in charge of Finance , 
with a copy to the Director of Administration and General Services Division.  
 
(b) If the Deputy Director -General in char ge of Finance decides that a claim is to be paid 
notwithstanding an objection by the Director of Administration and General Services 
Division , or by any duly authorised official , he shall do so in writing  without compelling the 
objecting official to be the  one effecting the payment.  Such decision shall be in writing 
and a copy retained  for audit purposes.  
7  PAYMENTS  
7.1  Vouchers to support payments  
(a) No payments shall be effected without satisfactory supporting documents. Except for 
payments made from  cash advance s 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 person s 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 st ated 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 proof of 
authori ty was produced.  
7.3  Officials authorized to make payments and designation 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, exc ept for 
payments made by any other person specifically designated 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 a nd General  Services Division. The exact duties of each cashier shall be 
notified to him in writin g by the designating official. Petty cash management is set 
according to the policy approved by the Deputy Director General in charge of Finance.  WT/BFA/W/396  
 
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  7.4  Staff remuneration, rei mbursement, and recoverables  
(a) Salaries, wages, and contributions to pension and medical plans, shall be paid in 
accordance with the relevant provisions of the Staff Regulation s, or other applicable 
rules.  All amounts deducted from salaries shall be paid as  soon as practicable to the 
accounts to which these amounts are due.   
(b) Reimbursement for travel expenses and payment of any allowances to members of staff 
shall be effected in accordance with the Staff Regulations or other applicable rules.  
(c) Any overpayment  to staff members can be recovered through payroll with deduction of 
the total amount effected within a period of 12 months .  
7.5  Advance and progress payments  
The Director of Administration and General Services Division may authorise the inclusion in a 
contra ct 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 cases where 
specific provision of this nature has been included in a contract with  the approval of the Director of 
Administration and General Services Division and for cases covered by Rules 6.5(c) and 6.5(d), 
payment may be made only after the services or goods have been received.  Claims for advance 
and progress payments shall be pres ented 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 attention shall be paid to claims offering a cash discount for prompt pa yment.  
7.7  Currencies of accounting and currency conversion rates  
(a) The accounts of the WT O shall be maintained in Swiss F rancs; however subsidiary 
accounting records may be maintained in other currencies.  
(b) The conversion rates used for internal accounting purpo ses, 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 indi cated by the value date 
and recorded at the WTO rate of exchange.  Gains or losses in exchange shall be 
accounted for in accordance with 7.7 (k) below.  
(d) Salaries shall be paid in Swiss Francs. The currencies in which the allowances of WTO 
officials may be pa id (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 use d for the payment shall be the WTO rate of exchange applicable at 
the time of payment.  
(f) Advances relating to salaries, allowances (except with regard to Education Grants) and 
expenses of officials for which the entitlement is expressed in terms of a  currenc y other 
than the Swiss F ranc, shall be recorded in Swiss F rancs at the WTO rate of exchange 
applicable at the time of the advance.  
(g) Education Grants:  
i. Advances relating to Education Grants in c urrencies other than the Swiss F ranc shall 
be recorded in Swiss F rancs at the WTO rate of exchange;   WT/BFA/W/396  
 
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  ii. final settlement will be calculated in the same currency as the advance to effect full 
recovery of the amount recorded.  
(h) When expenses incurred by officials or other persons to whom a payment is due from 
the WTO are reim bursed by the WTO in a currency other than that in which the expenses 
were incurred, the conversion rate used for the purpose of the reimbursement shall be 
the WTO rate of exchange applicable on the date on w hich the expenses were incurred.  
(i) In cases 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.  
(j) 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.   
(k) Exchange gains and losses resulting from the revaluation of assets and liabilities held in 
currencies other than the Swiss F ranc shall be accounted under miscellaneous income.  
7.8  Responsibility for payments  
An instruction from a superior shall n ot relieve an official authorized to approve payments from 
responsibili ty 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 Divis ion objects to a payment and 
this objection is overruled  by the Deputy Director General in charge of Finance , the overruling 
should be in writing, with a copy to the Director General.  Any such overruling 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.  
(b) The Director of Administration and Genera l Services Division may make such other 
advances as may be permitted by the Staff Regulations and Staff Rules or administrative 
instructions.  
7.10  Ex gratia payments  
The Director -General may, on an exceptional basis, authorise such ex gratia payments as he 
deem s to be necessary in the interests of the WTO.  A statement of such payments shall be 
submitted with the final accounts.  
7.11  Payments by official credit card  
Official credit cards may be issued to some officials, by the Director of the Administration and 
General Services Division.   The people who are provided with the credit cards will be provided 
with written instructions on the permissible use of the credit cards.    
 
8  TREASURY MANAGEMENT  
8.1   Treasury management  
The Deputy Director -General in charg e of Finance  shall establish a Treasury Management P olicy for 
funds in the custody of the Director -General.  The  Director of Administration and General Services 
Division shall be responsible for its implementation.  WT/BFA/W/396  
 
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  8.2   Designation of banks  
The Deputy Director -General in charge of Finance shall designate banks of internationally 
recognised standing to facilitate treasury management operat ions of the funds of the WTO. The 
criteria for 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 not immediately required shall be invested in non -speculative investments in 
accordance with Reg ulation 31 of the Financial Regulations  and the Treasury 
Management Policy . 
(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 and any case of fraud, presumption of fraud or 
attempted fraud must be reported at once to the Deputy Director -General in charge of Finance 
who will ensure that appropriate follow -up action is taken.  
 
9  PROCUREMENT  
9.1  Authority and responsibility  
(a) The Deputy Director -General in charge of Finance shall be responsible for the 
procurement functions of the WTO. He/she shall issue administrat ive instructions 
concerning the types of Procurement activity and monetary values for whi ch such 
methods of solicitation  are to be used.  
(b) Delegation of authority 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/she shall issue administrative instructions concerning the activity 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.   
(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 leading 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 committee, he or she shall 
record the reasons for such decision , in writing .   WT/BFA/W/396  
 
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  9.2   Competitive bidding and adver tising  
(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 plan ning for developing an overall procurement strategy  and procurement 
methodologies.  
ii. Market research for identifying potential suppliers while encouraging as much as 
possible international procur ement.  
iii. Consideration of prudent comme rcial practices.  
iv. Formal methods of solicitation, utilizing invitation to bid or request for proposals on 
the basis of advertisement or direct solicitation of potential suppliers, or informal 
methods of solicitation such as request for quotations.  
v. Due consi deration 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 t echnical 
cooper ation 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 appl ication of Rule 9.2(a) in 
cases where he decides in the interest of the WTO to 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 legislat ion 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 main cause of this extreme 
urgency;   
(d) when offers for identical products and services have been obtained compe titively within 
the previous  12 months;  
(e) when documented efforts to obtain satisfactory 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 service s that cannot be 
evaluated objectively;   
(i) when, within the calendar year,  the 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.    WT/BFA/W/396  
 
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  9.4   Awarding of contracts  
Contracts, including purchase orders, shall be awarded based on the following requirements:  
 
(a) In the case of Requests for Quotations (RFQ) and Invitations to Bid (ITB), contracts 
should be awarded to the best qual ified vendor submitting the most technically 
acceptable and lowest quotation or bid.  
(b) In the case of Requests for Proposals (RFP), contracts shall be awarded to the qualified 
vendor wh ose proposal is considered to offer  the best value (technical and financ ial) and 
the most respon sive 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 
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 purchases or contracts shall be made in writing.  
(b) The documents embodying 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 unit 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 not be i nterpreted 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.   
9.6   Written findings  
Each determination or decision required of an autho rised procurement official by the provisions of 
these rules shall be documented and placed in the appropriate record.  
 
10  PROPERTY  
10.1  Authority and Responsibility  
(a) 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, safekeeping, maintenance, 
transfer and disposal, including sale, and shall designate the officials responsible for 
performin g property management functions . WT/BFA/W/396  
 
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  10.2  Property records  
(a) Records shall be maintained of all property, plant and equipment, supplies and materials 
received, issued, sold or otherwise disposed of, and remaining on hand.  
(b) The Director of Administration and General S ervices Division shall establish the nature 
and extent of the records to be maintained for the purposes of this Rule.  
(c) Records shall be maintained in respect of supplies and property accounts by a 
designated official.  
(d) Control accounts shall be maintained re cording the total value of capital assets 
purchased and sold, or otherwise acquired and disposed of.  
10.3  Physical inventories  
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 control 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 used for private purposes except 
where specifically authorised in the interest of the WTO by the Director of Administration 
and General Services D ivision.  
(b) The Director of Administration and General Services Division shall determine the 
amounts due to the WTO for the use of its property or services.  
(c) Goods or services of the WTO may be provided to Members or any other entities on such 
terms and condit ions as may be appropriate in each case.  
10.5  Treatment of cases of loss of assets, fraud or unrecoverable debt  
(a) The Director of Administration and General Services Division may authorise losses of 
cash, stores or other assets not exceeding  the equivalent of 5,0 00 Swiss F rancs in each 
case to be written off if in his judgement the cost of recuperating 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 i n charge of Finance may authorize the writing -off of losses 
exceeding the equivalent of 5,000 Swiss Francs , taking into account the constraints as 
per Financial Regulation 41 . 
(c) All losses which are writte n off shall be included in the A nnual Financial S tatements and 
submitted to the external auditor with the relevant accounts.  The asset records shall be 
updated accordingly.  
(d) The Deputy Director -General  in charge of Finance shall determine if the responsibility for 
the loss, if any, should be assigned to an o fficial of the WTO.  Such an official may be 
required to reimburse the loss either partially or in full, 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 
Director-General through the Deputy Director -General in charge of Finance.  
(f) Amounts written off and subsequently recovered after the close of the financial period in 
which the writ e-off occurred shall be treated as miscellaneous income.  WT/BFA/W/396  
 
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  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 in the same manner as other goods acquired by the WTO.  
10.7  Disposal of surplus property  
(a) Property, plant and equipment and intangible assets that a re 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 maint ained and presented by the Administration and General Services 
Division as prescribed in Chapter XI of the Financial Regulations.  
11.2  Principal accounts  
In accordance with the International Public  Sector  Accounting Standards (IPSAS), financial 
statements submi tted to the External  Auditors for all accounts shall include:  
 
i. Statement of financial position;  
ii. statement of financial performance ; 
iii. statement of changes in net assets/equity;  
iv. cash flow statement (indirect method) ; 
v. a statement comparing budgeted and actual amounts ; 
vi. notes to the financial statements, comprising a summary of significant accounting 
policies and other explanatory notes ; 
vii. separate statement s and accounts for the Working Capital Fund and for any Trust 
Funds or Special Accounts . 
11.3  Subsidiary accounts  
The Director of Administration and General Services Division may arrange for subsidiary accounts 
to be maintained in other services as required by day -to-day operations.  
11.4  Accrual Basis accounting  
Unless otherwise directed by the particular terms governing t he 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).  
11.5  Archives  
Accounting and other financial rec ords 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.  
 
 
 WT/BFA/W/396  
 
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  APPENDIX  
 
 
Decision of the General Council of 11 July 1995 (WT/GCM/5)  
on the procedure for decisions having financial implications  
which may be taken by WTO Bodies  
 
WTO Bodies shall, before a decision is taken which may have financial implications, inform the 
Chairman of the Committee on Budget, Finance and Administration, and i dentify, in so far as 
possible, areas in their sphere of competence where compensatory savings could be achieved.  On 
the basis of the analysis made by the Administration and General Services Division the Committee 
will then examine the financial implicati ons and proposed funding, including the identification of 
existing WTO activities where savings could be achieved for the first start -up year and for the 
following on -going year(s), and forward such information to the General Council.  With full 
knowledge of the financial implications and proposed funding, the General Council will then take a 
final decision.  
 
 
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