RESTRICTED  
  
WT/BFA/141  
 
4 March 2014  
(14-1320)  Page: 1/3  
Committee on Budget, Finance and Administration    
 
 REPORT OF THE MEETING HELD ON 14 FEBRUARY 2014 
The Committee on Budget, Finance and Administration met on 14 February 2014 under the 
chairmanship of the Permanent Representative Mi chael V. Stone (Hong Kong, China). 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/4242 was adopted.  
1  REPORT OF OUTSTANDING CONTRIBUTIONS FROM MEMBERS AND OBSERVERS 
(WT/BFA/W/317) 
1.1.  A member of the Secretariat introduced the report on the outstanding contributions from 
Members and Observers. Ten Members were subject to Administrative Measures at the end of 
2013. At the start of each year, the list of Me mbers and Observers was updated with the annual 
assessed contributions. The situation regarding Me mbers' and Observers' outstanding contributions 
continued to improve. As part of the approved procedures, the Committee has to notify the 
General Council, at the start of every year, of the list of Members and Observers subject to 
Administrative Measures.     
1.2.  The Committee recommends to the General Council to urge Members and Observers 
under Administrative Measures to liquidate their arrears.  The updated list of the Members 
and Observers currently under Administrative Measures will be provided by the Chair of the 
Committee at the General Council meeting. 
2  REVIEW OF THE LONG TERM EMPLOYEE BENEFIT OBLIGATIONS  
2.1.  Members requested the Secretariat to presen t additional information on long-term liabilities 
related to the health insurance and pension plan. The Secretariat circulated two actuarial reports required as part of the implementation of International Public Sector Accounting Standards. The 
actuary from Mercer presented them to the Committee taking care to note the specific 
characteristics of actuarial valuations for accounting purposes.  
2.2.  A member of the Secretariat indicated that the long-term health insurance liabilities of the 
ITC, amounting to 58 million US dollars at the end of 2012, should be shared between the WTO 
and the United Nations, as co-parents of ITC.  
2.3.  Members indicated that further analysis on  these issues was necessary in order to gain a 
more detailed understanding of the situation. Information on practices in other organizations was 
also requested. Members also expressed concerns  regarding the important financial gap revealed 
by the implementation of International Public-Sector Accounting Standards (IPSAS) and the potential impact on the budget and future contributions.  
2.4.  The Chairman recalled that the WTO Pens ion Plan Management Board, where Members are 
being represented, was responsible with overseeing  the actuarial situation of the Pension Plan.  
2.5.  Almost all Members who took the floor expressed their interest in creating a Working Group 
to review in detail the liabilities related to the health insurance. The possibility to involve Staff was 
also suggested. 
2.6.  The Committee took note of the report. The Chairman would hold consultations to establish a 
Working Group and select a Chair.  WT/BFA/141 
 
- 2 - 
 
  3  WTO RISK MANAGEMENT (WT/BFA/W/320) 
3.1.  A member of the Secretariat presented the report on the key elements of the risk 
management system implemented by the Secretar iat at the end of 2012. Some sixty risks had 
been identified. Six risks were classified as critic al and were associated with either the actuarial 
liabilities on post-employment benefits or IT Security. The Secretariat indicated that it would 
continue working at enhancing its risk management system and would report on the situation on an annual basis. 
3.2.  A Member raised a question related to IT Security and whether the Organization had been 
faced with cyber-attacks.  
3.3.  The Committee took note of the report.  4  ORGANIZATIONAL REVIEW OF THE WTO SECRETARIAT (WT/BFA/W/321) 
4.1.   The Deputy Director-General Karl Brauner (DDG Brauner) updated the Committee on the 
organizational review process initiated by the Director-General at the end of 2013. The review 
process would be carried out by June 2014. 
4.2.  DDG Brauner said that the review process wo uld be driven internally and that staff would be 
broadly consulted. He also stressed the importance that the process would be conducted according to the Director-General's engagement to work within a zero nominal growth budget.  
4.3.  Several Members expressed an interest in the organizational review and wished to be kept 
informed and closely consulted. Some Members emphasized the importance of looking at the inverted pyramid and the need to benchmark with other Organizations. DDG Brauner ensured that he would fully inform to and consult with Members and was willing to share information and meet 
with Members as requested. 
4.4.  A Member asked whether current post vacancies would be frozen until the new review 
process was finalized. Two Members recalled that diversity in staff should be taken into account in 
that organizational review process. Some Members were concerned about any budgetary 
implications that the process would occur for Members. DDG Brauner reassured Members stating that there should be no impact on the overall budget and Members views on zero nominal growth 
would be factored into any recommendations/findings. DDG Brauner also indicated his willingness 
to discuss the progress of the review with Members individually or collectively.  
4.5.  The Committee took note of the report. 5  BUDGET AND FINANCE REPORT 4
TH QUARTER 2013 (WT/BFA/W/318)  
5.1.  A member of the Secretariat presented the preliminary budget outcome for 2013 disclosing a 
saving of some 8 MCHF achieved across almost all budget lines. The budget result is different from the accounting result. The final and detailed budget  situation would be presented in the audited 
2013 Financial Performance Report that would be released in the coming months. 
5.2.  The Committee took note of the report. 6  EXTRA-BUDGETARY FUNDS REPORT 4
TH QUARTER 2013( WT/BFA/W/315) 
6.1.  A member of the Secretariat then presented the 2013 financial situation on trust funds, 
especially focusing on the Global Trust Fund. The Secretariat mentioned that approximately 50 % of the activities foreseen in 2013 were implemente d. The available balance of the Fund amounted 
to a healthy 17.8 MCHF. In January, a contribution of the Netherlands had been received. 
6.2.  The Committee took note of the report.  WT/BFA/141 
 
- 3 - 
 
  7  MEMBERS' TRANSITION OPERATING FUND (WT/BFA/W/319) 
7.1.  A Member of the Secretariat updated the Committee on the financial situation of the fund 
related to the building project. The fund is in a process of being closed during the year 2014. The 
Secretariat would expect an amount of 1 MCHF available in the Fund.  
7.2.  The Secretariat also informed the Committee about works related to the terrazzo in the 
atrium and around the Centre William Rappard. The work on the security perimeter should be completed by May 2014. 
7.3.  A Member suggested the establishment of a long term building maintenance fund and 
proposed that this be included as part of the review of the WTO Financial Regulations. The Secretariat will make a proposal later this year.  
7.4.  The Committee took note of the report. Th e Chair invited the Secretariat to produce an 
information note about the security perimeter. 
8  REVIEW OF THE FINANCIAL REGULATIONS (WT/BFA/W/322) 8.1.  Following changes in accounting practices required by the implementation of International 
Public Sector Accounting Standards (IPSAS), the External Auditor is recommending the review the 
WTO Financial Regulations. The Secretariat is available to assist Members in this process.  
8.2.  The Committee took note of the report. The Chairman would hold consultations to establish a 
Working Group and select a Chair.  
__________