RESTRICTED  
  
WT/BFA/W/454  
15 June 2018 
(18-3622) Page: 1/51 
Committee on Budget, Finance and Administration   
 
   
REPORT OF THE INDEPE NDENT EXTERNAL AUDIT OR ON THE AUDIT OF THE  
FINANCIAL STATEMENTS  OF THE WORLD TRADE O RGANIZATION (WTO)  
FOR THE YEAR ENDED 31 DE CEMBER 2017  
1   EXECUTIVE SUMMARY  ................................ ................................ ................................ . 3 
2   SCOPE AND APPROACH O F THE AUDIT  ................................ ................................ ........  6 
2.1   Scope of the Audit  ................................ ................................ ................................ ....... 6 
2.2   Audit Objective and Approach  ................................ ................................ .......................  6 
2.3   Audit Conclusion  ................................ ................................ ................................ ..........  7 
3   FINANCIAL AUDIT  ................................ ................................ ................................ ....... 8 
3.1   General  ................................ ................................ ................................ ......................  8 
3.2   Contributions  ................................ ................................ ................................ ..............  8 
3.3   Financial Position/Performance  ................................ ................................ ..................... 10 
3.3.1    Statement of Financial Position  ................................ ................................ .................. 10 
Assets and Liabilities  ................................ ................................ ................................ .......... 10 
Cash and Cash Equivalents  ................................ ................................ ................................ ..11 
Receivables from Members and Observers  ................................ ................................ ............ 12 
Inventories  ................................ ................................ ................................ ....................... 12 
Other receivables  ................................ ................................ ................................ ............... 12 
Advances and prepayments  ................................ ................................ ................................ .13 
Building  ................................ ................................ ................................ ............................ 13 
Equipment  ................................ ................................ ................................ ........................ 13 
Pension Plan Asset s ................................ ................................ ................................ ............ 14 
Assessed contributions received in advance  ................................ ................................ ........... 14 
Short -term employee benefits/Provisions for invalidity cases  ................................ ................... 14 
Loan ................................ ................................ ................................ ................................ .15 
Pension Benefits  ................................ ................................ ................................ ................ 16 
ASHI ................................ ................................ ................................ ................................ 16 
Net assets (total)  ................................ ................................ ................................ ............... 17 
3.3.2    Statement of Financial Performance  ................................ ................................ ........... 17 
Revenue and Expenses  ................................ ................................ ................................ .......17 
Net resu lt/surplus (deficit) for the period  ................................ ................................ .............. 19 
4   PERFORMANCE AUDIT  ................................ ................................ ...............................  20 
4.1   Travel Expenses  ................................ ................................ ................................ ......... 20 
Focus and Objectives  ................................ ................................ ................................ .......... 20 WT/BFA/W/454  
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  WTO Prin ciples on Official Travel  ................................ ................................ .......................... 20 
Cost of Air Travel  ................................ ................................ ................................ ............... 21 
New Travel Platform MobileXpense  ................................ ................................ ....................... 21 
Cash Advances  ................................ ................................ ................................ .................. 21 
Application fo r Travel Authorization  ................................ ................................ ...................... 22 
Maintaining the Travel Platform MobileXpense  ................................ ................................ .......22 
4.2   Consultants  ................................ ................................ ................................ ............... 23 
Focus and Objectives  ................................ ................................ ................................ .......... 23 
Guidelines and Manuals used by WTO  ................................ ................................ ................... 23 
Audit and Recommendations of Internal Audit/OIO  ................................ ................................ .23 
Two different processes for recruiting c onsultants within WTO  ................................ ................. 24 
Sample Check of Consulting Services  ................................ ................................ ................... 24 
5   CASES OF FRAUD OR SU SPECTED FRAUD  ................................ ................................ .. 24 
6   ACKNOWLEDGEMENT  ................................ ................................ ................................  24 
LIST OF ABBREVIATION S AND ACRONYMS  ................................ ................................ .... 25 
ANNEX/LIST OF RECOMM ENDATIONS  ................................ ................................ ............  26 
 
  WT/BFA/W/454  
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  1  EXECUTIVE SUMMARY  
My team and I have audited the f inancial statements of the WTO  
1.  My team and I have audited the financial statements of the World Trade Organization 
(hereinafter "WTO") for the financial period from 1  January to 31  December  2017. These 
comprise:  
 the statement of financial position;  
 the sta tement of financial performance;  
 the statement of cash flows;  
 the statement of changes in net assets;  
 notes and annexes to the financial statements.  
Responsibility of Management  
2.  The Management of WTO is responsible for the preparation and fair presentation  of the 
financial statements in accordance with International Public Sector Accounting Standards (IPSAS) 
and for such internal control as Management determines necessary to enable the preparation of 
financial statements that are free from material misstate ment, whether due to fraud or error.  
In preparing the financial statements, the Management is responsible for assessing WTO 's ability 
to continue as a going concern, disclosing, as applicable, matters related to going concern and 
using the going concern ba sis of accounting unless Management either intends to liquidate WTO  or 
to cease operations, or has no realistic alternative but to do so.  
 
Those charged with governance are responsible for overseeing the WTO 's financial reporting 
process.  
 
Responsibility o f the External Auditor  
3.  My responsibilities are to obtain reasonable assurance about whether the financial statements 
as a whole are free from material misstatements, whether due to fraud or error, and to issue an 
auditor 's report that includes my opinion . Reasonable assurance is a high level of assurance, but is 
not a guarantee that an audit conducted in accordance with ISAs will always detect each and every 
material misstatement . Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of these financial statements.  
As part of an audit in accordance with ISAs, I exercise professional judgment and maintain 
professional scepticism  throughout the audit.  
 
I also:  
 
 identify and assess the risks of material misstatement of the financial statements, 
whether due to fraud or error, d esign and perform audit procedures responsive to those 
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for 
our opinion . The risk of not detecting a material misstatement resulting from fraud is 
higher than for one res ulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control;  
 obtain an understanding of internal control relevant to the audit in order to design audit 
procedures that are appro priate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of WTO 's internal control;  
 evaluate the appropriateness of underlying accounting policie s and the reasonableness of 
accounting estimates and related disclosures made by Management;  
 conclude on the appropriateness of Management 's use of the going concern basis of 
accounting and, based on the audit evidence obtained, whether a material uncertainty 
exists related to events or conditions that may cast sign ificant doubt on the WTO 's ability WT/BFA/W/454  
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  to continue as a going concern . If we conclude that a material uncertainty exists, we are 
required to draw attention in our auditor 's report to the related disclosures in the 
financial statements or, if such disclosures a re inadequate, to modify our opinion . Our 
conclusions are based on the audit evidence obtained up to the date of our auditor 's 
report . However, future events or conditions may cause WTO  to cease to continue as a 
going concern;  
 evaluate the overall presenta tion, structure and content of the financial statements, 
including the disclosures, and whether the financial statements represent the underlying 
transactions and events in conformity with the principles of fair presentation.  
My team communicated with thos e charged with governance the planned scope and timing of the 
audit and significant audit findings, including any significant deficiencies in internal control that we 
identify during our audit.  
 
Scope of the audit  
4.  The audit included the examination, on a t est basis, of evidence supporting the amounts and 
disclosures in the financial statements . It also included an assessment of the underlying 
accounting principles, and significant estimates made by the Director -General, as well as an 
evaluation of the overa ll presentation of the financial statements.  
I have conducted my audit in conformity with the Inte rnational Standards on Auditing  
5.  I conducted my audit in conformity with the International Standards on Auditing (ISAs) as 
adopted and amended by the Internati onal Organization of Supreme Audit Institutions (INTOSAI) 
and issued as International Standards for Supreme Audit Institutions (ISSAI) . These standards 
require that I plan and perform the audit to obtain reasonable assurance about whether the 
financial sta tements are free from material misstatement.  
I am independent of the WTO  in accordance with the ethical requirements that are relevant to my 
audit of the financial statements and I have fulfilled all other ethical responsibilities in accordance 
with these requirements.  
 
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for 
my opinion.  
 
My audit provides a reasona ble basis for the audit opinion  
6.  The ISAs, as well as the ISSAI, require the auditor to carry out a n audit of an organ ization's 
accounts and financial transactions which includes examining, on a test basis, evidence supporting 
the amounts and disclosures in the financial statements . It also includes assessing the accounting 
principles and significant estimates made by the Director -General, as well as evaluating the overall 
presentation of the financial statements . I believe that my audit provides a reasonable basis for 
the audit opinion.  
The financial statements presen t fairly the financial position  
7.  As a result of my audit, I am of the opinion that the financial statements present fairly, in all 
material respects, the financial position as at 31  December  2017, that they have been prepared in 
accordance with IPSAS and WTO's  stated accounting policies, an d that the transactions have been 
in accordance with the Financial Regulations . Furthermore, I assume that the IT system the 
Secretariat is responsible for and which it is using for accounting and the preparation of the 
financial statements is working prop erly and according to ISSAI standards (even though I had no 
chance to verify that in the course of this audit), especially concerning IT security (see also my 
recommendations in previou s reports).  WT/BFA/W/454  
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  I have placed an unqualified audit opin ion on the financial  statements  
8.  The audit revealed no weaknesses or errors which I considered material to the accuracy, 
completeness and validity of the financial statements as a whole . Therefore I have placed an 
unqualified audit opinion on WTO's  financial statements for 201 7. 
Areas covered by this report  
9.  My report includes observations and recommendations intended to contribute to the 
improvement of financial management . For 2017, my audit work has mainly covered the areas 
described in the following paragraphs.  
Overall finan cial situation (Part  3) 
10.  In accordance with Chapter XIII of the Financial Regulations, I present an analysis of WTO's  
financial statements . In Part 3 of my report I comment on the overall financial situation.  
Performance audit areas covered by this report ( Part 4) 
11.  Regulation  44 of the Financial Regulations stipulates that my annual audit shall also include 
performance audits as defined by the INTOSAI Auditing Standards . This year, my performance 
audit has mainly covered the areas of travel expenses and the use of consultants within the WTO.  
WTO delivered financial stat ements in accordance with IPSAS  
12.  The financial statements for the year ending 31  December  2017 are prepared and presented 
in accordance with IPSAS.  
Cases of fraud or suspected fraud (Part  5) 
13.  During our audit, my team was informed by the Office of Int ernal Oversight (OIO) about 
one case of severe fraud . The case regarding home leave and dependency allowance was detected 
in 2017 . The incumbent was sanctioned and the defrauded amounts were reimburse d to the WTO.  
Acknowledgement (Part  6) 
14.  I wish to convey my appreciation for the cooperation and assistance extended by the 
Director -General, the Management and staff of the Secretariat . I appreciate that the Secretariat is 
continuously reviewing and improv ing the financial statements, thus making the job for me and 
my team easier . I am very grateful for their assistance during the entire external audit process.  
List of Recommendations (Annex)  
15.  My team reviewed/monitored the pending implementation of recommen dations made in last 
year's report.  
 
  WT/BFA/W/454  
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  2  SCOPE AND APPROACH O F THE AUDIT  
2.1  Scope of the Audit  
Principles governing my audit  
16.  My staff and I have audited the financial statements of the WTO for the financial period from 
1 January to 31  December  2017. These state ments comprise the statement of financial position, 
the statement of financial performance, the statement of cash flows, the statement of the changes 
in net assets and notes and annexes to the financial statements . We also examined the related 
financial ac counts and transactions.  
Responsibility of Management  
17.  The Director -General is responsible for the preparation and fair presentation of these financial 
statements in accordance with WTO 's Financial Regulations, and with such internal controls as 
Management determines are necessary to ensure the preparation of financial statements that are 
free from material misstatement, whether due to fraud or error.  
Responsibility of the External Auditor  
18.  I am responsible for expressing an opinion on the financial statement s based on evidence 
obtained during my audit . I planned and performed the audit in such a way as to obtain 
reasonable assurance that the financial statements are free from material misstatement.  
Audit of the financial statements  
19.  The financial statements of  the WTO, together with my audit report and the audit opinion, 
have been discussed with the Director -General . He has taken note of the contents of my report.  
Performance audits  
20.  In addition to my audit of WTO's  financial statements, accounts and financial t ransactions, I 
carried out the reviews (under Regulation 44 of the Financial Regulations) that I deemed 
necessary with respect to the efficiency and effectiveness of processes and procedures and the 
financial consequences of existing administrative practic es. 
2.2  Audit Objective and Approach  
Objective of financial audit : Forming the audit opinion  
21.  The objective of the audit was to enable me to form an opinion on whether the expenditure 
recorded for the year had been incurred for the purposes approved by the General Council ; 
whether revenues and expenses were properly categoriz ed and recorded in accordance with WTO 's 
Financial Regulations ; and whether the financial statements presented fairly the financial position 
as at 31  December  2017.  
Substantive testing c onvinced me of the correctness of WTO 's records  
22.  My audit opinion is based on substantive testing of the transactions recorded in all areas of 
the financial statements . The examination was carried out to ensure that the financial statements 
accurately refle ct the accounting records and present fairly the financial situation of the WTO.  WT/BFA/W/454  
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  2.3  Audit Conclusion  
I found no material weaknesses . I have placed an unqualified opinion on WTO 's financial 
statements.  
23.  Notwithstanding the observations in this report, my examin ation revealed no weaknesses or 
errors which I considered material to the accuracy, completeness and validity of the financial 
statements as a whole . In accordance with normal practice, my team reported additional findings 
to the Management of the Secretar iat in the course of the audit . I certify that the financial 
statements and schedules present fairly the financial situation of WTO, and I have placed an 
unqualified opinion on WTO 's financial statements for 2017.  
 WT/BFA/W/454  
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  3  FINANCIAL AUDIT  
3.1  General  
My team examined  the accounting records  
24.  My audit included a general review, and such tests of the accounting records and other 
supporting evidence as I considered necessary in the circumstances . These audit procedures are 
primarily designed to allow an opinion on WTO's fi nancial statements to be formed.  
Random sample check  
25.  We analysed data records and transactions . From a total o f 69.921 records we eliminated 
automatically generated bookings using the audit software "IDEA". We clustered all transactions 
and took a random s ample of a significant number of the remaining transactions . We checked 
whether invoices and the related documents had been filed in accordance with the regulations and 
cross-checked the basis for payment and the necessary approvals . No transactions examin ed gave 
cause for criticism . The Secretariat was able to clarify all open questions.  
I report on WTO 's financial development  
26.  In the following paragraphs, I report on trends and tendencies and provide background 
information . For that purpose, my staff carried out an analysis of several of the Organization 's key 
figures and their trend.  
3.2  Contributions  
2017 budget w as approved by General Council  
27.  WTO activities are financed from the regular budget covering expenses and income for a 
biennium, this time 2016-2017. The 2017 budget was approved by the General Council on 
recommendation by the CBFA (Committee on Budget, Finance and Administration) . The budget is 
financed from assessed contributions and miscellaneous income . The 2017 approved budget 
amounted to CHF  197.2  million and represented the second year of the biennium 2016 -2017.  
Since 2011 there has been a Zero -Nominal Growth Budget -Policy for the WTO, so the budget has 
been unchanged since 2011.  
 
Calculation of contributions  
28.  The contributions are calculated  based on each Member State´s international trade (imports 
plus exports) in relation to the international trade of all WTO Member States, based on statistics 
over a five year period.  
Reviewing of contributions  
29.  I reviewed contributions for 2017.  
 
2017 Assessed 
Contributions*  % Outstanding 
Contributions  % 
Member States  195.5  33.8  
Observers  0.6  0.6  
Total  196.1 82.5 34.4 17.5 
*  (Differences due to rounding.)  
Source :  WTO Financial Statements 201 7; in million  CHF. WT/BFA/W/454  
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  In 2017, assessed Member States ' contributions amounted to CHF  195.5  million  
30.  Assessed contributions by Member States amount to CHF  195.5  million, contributions by 
Observers are CHF  0.6 million . At the end of 2017, WTO has 164 Member States and 21 Observer 
States.  
31.  Assessed contributions p aid in advance by Members and Observers amount to CHF  9.4 million . 
In 2017, just like in 2016, due to the negative interest rate of the Swiss National Bank (SNB), 
Members gained no interest . Negative interest was covered by the WTO budget.  
Outstanding cont ributions totalled CHF  33.8 million  
32.  The outstanding contributions totalled CHF  33.8 million – coming from a peak in 2003 with a 
total of CHF  31.5 million outstanding contributions and CHF  16.5 million in 2016 . The increase in 
the amount of outstanding cont ributions is due to the fact that one of the top ten Members only 
contributed a part of its planned and agreed contributions.  
I recommend preparing an action plan for running the WTO with growing outstanding 
contributions  
33.  To be prepared for situations like  these and in case that outstanding contributions are growing 
I recommend that the Secretariat be prepared and have a plan for running the WTO even with 
higher outstanding contributions.  
48 Members o ut of 164 have payment arrears  
34.  Forty-eight (after 67 in t he year before) out of 164 Members had payment arrears 
(approximately  30%).  
Administrative Measures for M embers/Observers with arrears  
35.  Pursuant to Regulation 14 in the WTO Financial Regulations Members and Observers with 
arrears shall be subject to Admini strative Measures . Details of Administrative Measures and their 
different levels are defined in Annex B of WTO's  Financial Regulations . There are three categories 
of Administrative Measures depending on the number of years of outstanding contributions.  
Four Members are following a payment plan, 13 Members ar e under Administrative 
Measures  
36.  The majority of the 48 Members with payment arrears have outstanding payments since a 
short period of time . There are four Members following a payment plan to suspend Adm inistrative 
Measures. Thirteen  Members are under Administrative Measures . Outstanding co ntributions in the 
period  1974–2015 amount to CHF 6.3  million .  WT/BFA/W/454  
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  3.3  Financial Position/Performance  
Table 1 – Statement of Financial Po sition as at 3 1 December  2017* 
(In million  CHF) 
 2017 2016 2015 
Current Assets     
Cash and cash equivalents  115.1  132.9  120.6  
Receivables from Members  23.4 6.8 14.4 
Receivables from Observers  0.6 0.6 0.6 
Inventories  0.4 0.4 0.4 
Other receivables  3.5 2.8 5.6 
Advances and prepayments  4.8 5.4 5.3 
Non-Current Assets     
Building  121.3  124.3  127.3  
Equipment  11.7 13.2 15.4 
Intangible assets  0.4 0.4 0.5 
Pension Plan Assets  595.9  535.5  496.3  
TOTAL ASSETS  877.1  822.3  786.5  
Current Liabilities     
Payables  4.8 2.8 6.6 
Accruals  6.6 5.1 2.8 
Assessed contributions received in 
advance  9.4 16.8 16.3 
Voluntary contributions refundable to 
donors  32.9 34.5 35.7 
Short -term employee benefits  12.1 12.1 12.6 
Non-Current Liabilities     
Loan 54.0 55.2 56.4 
Pension benefits  1,034 .9 982.0  855.6  
ASHI 228.9  226.3  245.5  
Other long -term employee benefits  8.3 7.7 9.3 
TOTAL LIABILITIES  1,392.0  1,342.5  1,240.9  
    
NET ASSETS /EQUITY  (514.9) (520.2 ) (454.5)  
WCF (Working Capital Fund)  10.9 10.9 10.8 
Actuarial gain (loss)  246.7 210.4  248.3  
Accumulated surplus  (837.3 ) (806.4)  (778.0)  
Provision for right of use - CWR 58.6 59.2 59.8 
Reserves  15.8 12.2 8.2 
Extra Budget Fund Allocation  -9.5 -6.5 -3.4 
TOTAL NET ASSETS  (514 .9) (520.2 ) (454.5)  
* (Differences due to rounding).  
Source :  WTO Financi al Statements 2017 and 2016 .  
3.3.1   Statement of Financial Position  
Assets and Liabilities  
My team examined the stat ement of assets and liabilities  
37.  Full reporting of assets and liabilities in a balance sheet enables the reader to understand the 
financial position of an organization . Such a statement of financial position is also required under 
IPSAS . My team examined this statement and the presentation of the major underlying accounts.  WT/BFA/W/454  
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  Assets  
Current Assets  
Cash and Cash Equivalents  
Overall cash situation with a total of CHF  115.1  million is sufficient  
38.  WTO's  overall cash situation is sufficient . Compared to the balance in the previous year, total 
cash and cash equivalents decreased by CHF  17.8 million from CHF  132.9  million in 2016 to 
CHF 115.1  million as a t 31 December  2017 (CHF  120.6.7  million in 2015) . Cash and cash 
equivalents include cash in hand and cash accounts at bank.  
Cash deposits in CHF decreased in 2017  
39.  The decrease in 2017 is mainly due to the reduction of cash deposits in CHF amounting to 
CHF 97.3 million (CHF  122.9  million in 2016).  
40.  Other currencies ( USD, EUR and GBP) are of minor importance for WTO . In 2017, the total 
amount of assets in other currencies was equivalent to approximately CHF  17.8 million (thereof 
USD 14.8 million ). 
In 2015 the SNB lowered the interest rate to -0.75% 
41.  On 15 January  2015, the Swiss National Bank (SNB) announced to lower the interest rate by 
0.5 percentage points to -0.75%. 
In 2017 the SNB persisted in implementing its policy of negative interests  
42.  Following the SNB decision, WTO's  main banking partners (UBS, Crédit Suisse and Swiss Post 
Capital Fund) introduced negative interest rates of -0.75% on the accounts in CHF as of 
1 April 2015.  
WTO paid negative inte rests in 2017 just like in 2016  
43.  According to the financial  statements, WTO 's cash and cash equivalents amount to more than 
CHF 115 million . Because of the monetary policy of the SNB (see above) the WTO paid negative 
interests in 2017 just like in 2016.  
WTO was charged by negative interests with an amount of CHF 359,0 82 
44.  In 2017 the WTO paid negative interests related to the regular budget of CHF 191,234 and 
related to the trust funds of CHF 61,601 . Additionally the WTO Pension Fund paid CHF 106,247 
negative interests for its own investments . In total, the WTO was charged in 2017 by negative 
interests with an amount of CHF 359,082.  
WTO could not compensate the negative  interests with positive income  
45.  The increase of negative interests was because the WTO could not achieve sufficient positive 
income from investments i n fixed investments of money and money market funds to compensate 
the negative interests in Switzerland.  
In November  2017 Credit Suisse cancelled its agreement with WTO granting 
CHF 40 million  without negative interest s 
46.  In 2016 and 2017, the WTO benefited from granted allowances by two of its house banks : 
UBS granted CHF 50  million  without negative interests and Credit Suisse granted CHF 40  million  
without negative interests . In November  2017 Credit Suisse cancelled its agreement with WTO.  WT/BFA/W/454  
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  There is a risk of negative interests of up to CHF  1 million  per annum  
47.  WTO will be faced with negative interest rates continuing to rise up to more than half a  million  
CHF in 2018 . The agreement with UBS may be cancelled also from one day to another . In this case 
the risk  of negative interest could rise up to one  million  CHF per annum.  
Receivables from Members and Observers  
Provision for arrears amounts to CHF  10.4 million  
48.  Receivables from Members and from Observers (receivables from non -exchange transactions) 
include a pr ovision for outstanding contributions . The provision for arrears from Members and 
Observers amount to CHF  10.4 million (CHF  9.9 million from Members ; CHF 0.5 million from 
Observers).  
Thirteen  Members are subject to Administrative Measures representing CHF  6.9 million , 
21% o f all outstanding contributions  
49.  There is a total of 13 Members subject to Administrative Measures in different categories : 
six in category I (after one but less than two ful l year's outstanding contributions) and seven in 
category III (after three full year's outstanding contributions).  
The 13 Members are representing a volume of CHF 6.9  million  (21%) of a total of CHF 33.8 million  
of outstanding contributions.  
 
Inventories  
Inventories consist mainly of WTO publications and co -publicat ions 
50.  Inventories within current assets for WTO are mainly publications and co -publications totalling 
CHF 0.4 million.  
Some inventories are held  in external storage facilities  
51.  Not all inventorie s are held internally ; a part of the WTO publications and co -publications are 
stored at a third party storage facility representing a volume CHF 120 ,000. 
Other receivables  
Recoverable United States taxes amount to CHF  2.9 million   
52.  Other receivables include  recoverable taxes, e.g. from the United States (US) or Switzerland . 
In 2017, other receivables totalled CHF  3.5 million (2016 : CHF 2.8 million) ; CHF 2.9 million of the 
2017 total were recoverable US taxes.  
WTO pays estimat ed US tax for staff in advance  
53.  Staff members of WTO, like those of other international organizations, are exempt from 
income tax . Nevertheless, the US requires its citizens and residents to pay tax worldwide . The 
WTO pays estimated tax payments in advance and asks for a reimbursement from  the US Tax 
Authorities based on an agreement between WTO and US of 22  December  2000.  
54.  The WTO Secretariat 's method of calculating reimbursements is different from the method 
used by the US Government, although the WTO method is validated by the Internation al Labour 
Organization (ILO).  
55.  In 2017, the amount non -reimbursable for the WTO totalled CHF  286,509 
(2016 : CHF 205,040).  
 WT/BFA/W/454  
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  Advances and prepayments  
Advances and prepayments amount to a total of CHF  4.8 million  
56.  In 2017, advances and prepayments with a total of CHF  4.8 million include staff advances 
made for salary, travel and education grants representing CHF  2.8 million ; advances relating to 
trust funds activities with an amount of CHF  1.3 million and other advances (e.g. payments made 
to suppliers, consultants and insurances) of CHF  0.6 million.  
Non-Current Assets  
Building  
The net carrying amount for building as at 31  December  2017 is CHF  121.3  million  
57.  With regard to non -current assets, a balance sheet item of high value is "building " with a net 
carrying amount of CHF  121.3  million (2016 : CHF 124.3  million) . The accumulated depreciation 
concerning buildings as at 31  December  2017 amount to CHF  13.2 million (depreciation for 2017 
only: CHF 3 million).  
CWR  building is granted by the Canton of Geneva and the FIPOI as a 99 -year surface 
right  
58.  WTO headquarters building at 154 rue de Lausanne, Geneva has two buildings : the old 
building of CWR and the new building constructed by the WTO itself . The CWR building a nd the 
land were granted by the Canton of Geneva and the Foundation for International Organizations 
(FIPOI) as a 99 -year "surface right ".  
Equipment  
Equipment totals CHF  11.7 million  
59.  The total value of equipment amounts to CHF  11.7 million (2016 : CHF 13.2 million) . The most 
significant items are furniture (CHF  4.8 million), audiovisual equipment (CHF  4.2 million), security 
equipment (CHF  1.8 million) and IT equipment (CHF  0.6 million).  
An adequate st ocktaking system is implemented   
60.  Following my recommendati on in the last report, the WTO implemented in 2017 non -current 
assets software to manage all relevant assets . This software allows recording the lifetime of 
assets, their purchase date and price, location and other information of importance . With these 
data, the assets can be located and traced and their depreciation can be calculated automatically . 
All new acquisitions will be recorded in the asset ledger automatically via a link to the Oracle ERP 
system . Procurement, cash management and accounting includi ng asset management are now 
automatically linked . Before their first use, assets will be tagged individually with a barcode . The 
WTO plans to take the stock annually.  
My team checked the softw are and the stocktaking process  
61.  My team had the possibility to c heck the software and to verify the amount of the assets 
presented in the financial statements . My team took a sample of assets ; all of them were found 
and all relevant data were recorded.  
For some assets there are no individual values documented  
62.  After the  first stocktaking my team was able to check the value of single assets . WTO 
categorized investments in renovation etc. so that they were grouped in a special way . The 
aggregated amount was equally distributed on every non -current asset . All of the assets of an 
individual group are depreciated within the same period of time . None of the assets is subject to 
be sold before the end of its depreciation period . The WTO proceeds like this because the vendors WT/BFA/W/454  
- 14 - 
  did not invoice sufficient details . Accordingly, indiv idual prices for single assets were not available 
so the individual value is not documented.  
The stocktaking system in general presents a true and fa ir value of all relevant assets  
63.  The assets are presenting a fair and true value even if for some assets an individual value 
does not exist . I consider the valuation method as acceptable, because another procedure would 
have caused enormous effort and expenses without a significant added value . For new acquisitions 
and investments the WTO has the necessary proce dures and tools to record every single asset 
with its particular value and attributes which are needed for accounting.  
Pension Plan Assets  
Fair value of Pension Plan assets : CHF 595.9  million  
64.  At the beginning of 2017 (31  December  2016) the fair value of Pl an assets was 
CHF 535.5  million . With all expenses, contributions and benefits paid, the fair value as at 
31 December  2017 was CHF  595.9  million.  
Employer contributions 2017 : CHF 19.0  million  
65.  The total of all employer contributions for 2017 amount to CHF 1 9.0 million  
(2016 : CHF 19.1 million ). 
The actuarial gain amount to CHF 48.5  million  
66.  The actuarial gain on Plan assets net of actual inve stment expenses for 2017 is 
CHF 48.5 million  (in 2016 : CHF 20.2  million ).  
Benefits paid in 2017 : CHF 27.1 million  
67.  Benef its paid from the Plan amount to CHF  27.1 million (2016 : CHF 23.5 million).  
Liabilities  
Current Liabilities  
Assessed contributions received in advance  
Contributions paid in advance : CHF 9.4 million  
68.  The total amount of contributions paid in advance by Members and Observers is 
CHF 9.4 million (2016 : CHF 16.8 million) . In 2017, (due to negative interest rates) Members 
gained no interests.  
Short -term employee benefits /Provisions for invalidity cases  
Short -term employee benefits total CHF  12.1 million  
69.  Short -term employee benefits comprise dependency allowance, untaken annual leave, 
education grant, home leave, separation grant and provision for bonus . The total as at 
31 December  2017 amounts to CHF  12.1 million.  WT/BFA/W/454  
- 15 - 
  Short -term Employee 
Benefits  31/12/2017  
(in million CHF)  
Dependency allowance  0.05 
Untaken annual leave  8.80 
Education grant  1.28 
Home leave  1.04 
Separation grant  0.11 
Provision for bonus  0.84 
Total  12.12  
 
Provisions of invalidity totalled CHF 4.53  million  in 2017 which are probably too low  
70.  The financial statements as of 3 1 December  2017 comprise provisions for two invalidity cases 
with a total of CHF 4.53  million. I f the monthly payments to both persons are accrued over the 
average Swiss (remaining) life e xpectancy, these provisions would  have to be raised to about 
CHF 9.4 million  in total, each provision would have to be more than doubled.  
I repeat and extend my recommendation of my report last year to check these invalidity 
provisions and include al l relevant WTO invalidity cases  
71.  Last year I already recommended reviewing whether more funds have to be allocated to this 
provision . This year I have to repeat and extend this recommendation to all relevant WTO 
invalidity cases in order to comply with the re quirement of a true and fair view given by the 
financial statements.  
HR did not deliver essential documents to the Auditor . Next time I expect requested 
documents in time a nd without any further reminder . 
72.  My team did not receive essential documents by the Human Resource Division (HRD), 
although requested with adequate time to respond . Other documents were provided delayed by 
HRD only after my audit team had already left Geneva . I expect HR to provide the requested – and 
even not handed -in-later documents – at the beginning of next year 's financial audit without any 
further reminder or delay.  
To improve time of response for HR I recommend installing a focal point/ person for all 
audit requests  
73.  I recommend that HR provide a focal point/person to channel and dea l with audit requests 
regarding HR topics to avoid any future delay of providing information to the Auditor.  
WTO should check if an insurance policy that covers the complete risk  of invalidity could 
make sense  
74.  Furthermore, I suggest that WTO review whether  it is economically advantageous to take out 
an insurance policy that covers the complete risk of invalidity instead of minor one -time lump sum 
payments only.  
Non-Current Liabilities  
Loan  
WTO received an interest -free loan of CHF  60 million  
75.  The WTO receive d a CHF  60 million loan from the Swiss authorities to finance renovation work 
on its headquarters (CHF  20 million for the south and north courtyards and another CHF  40 million 
for the new administrative building).  WT/BFA/W/454  
- 16 - 
  The annual repayment is CHF  1.2 million ; the residual debt as at 31  December  2017 is 
CHF 54.0 million . 
76.  The loan is interest -free; its term is 50 years . WTO started repayment in 2013 with 
CHF 1.2 million (1/50 of CHF  60 million) ; in 2017, WTO repaid another CHF  1.2 million. T he total 
of the residua l debt as at 31  December  2017 is CHF  54.0 million.  
Pension Benefits  
Pension benefits total CHF  1,034.9  million  
77.  The WTO Pension Plan is a defined benefit plan . The value of its commitments according to 
IPSAS  amounts to CHF  1,034.9  million as at 31  December  2017 (2016 : CHF 982.0  million).  
Discount rate as an essential assumption is 2.0 % 
78.  The key actuarial assumption is 2.0 % for the discount rate for pension benefit obligations . The 
expected long -term rate of r eturn on Plan assets is 2.00 %; the assumption for inflation is 0.60 %. 
ASHI  
ASHI total states a net liability of CHF  228.9  million 
79.  The After Service Health Insurance (ASHI) benefits are calculated, just like the pension 
liability, by consulting actuaries . For its long -term obligation regarding the ASHI the WTO states in 
the financial statements as of 3 1 December  2017 a net liability of CHF 228.9  million  as "Employee 
benefits " (Note 14) . This liability was calculated by a consulting actuary based on WTO edite d 
personnel data and past payment experience.  
The huge increase of CHF 118  million  for ASHI from 2016 to 2017 has been caused by an 
error made by the actuary in 2016  
80.  In 2017, WTO changed the responsible consulting actuary that provided the actuarial 
valuat ion for the ASHI obligation as at 3 1 December  2016 and the current actuarial valuation for 
the ASHI obligation as at 3 1 December  2017. Compared to the net liability provided by the Actuary 
in the last report as of 3 1 December  2016 with the new actuarial re port as of 3 1 December  2017, 
the obligation increased from CHF 110.9  million  to CHF 228.9  million. T he huge increase of 
CHF 118 million  turned out to be an error made by the actuary in 2016 . The ASHI liability showed 
in the 2016 report was therefore signif icantly too low.  
Due to an error a significant lower than expected ASHI liability was disclosed in the 
2016 year -end repo rt 
81.  Following the change of the actuarial service provider in 2017, the ASHI liability for 2016 was 
calculated without the assumption on  medical inflation by age which is an important assumption 
that affected both medical inflation and the contributions to the Plan . Thus, a significant lower than 
expected ASHI liability was disclosed in the 2016 year -end report.  
In 2018, the new actuarial service provider collected information on the aging factor for the 2017 
WTO population and considered this data in a revised calculation of the ASHI liability as at 
31 December  2016 too.  
 
The WTO contacted the actuary for a revised actuarial valuation ; as a consequence the 
overall liability was immediately adjusted.  
82.  During our audit in April 2018 I recommended that WTO corre ct the error regarding the 
ASHI liability as of 3 1 December  2016 to 1 January  2017 as a balance correction . This enables a 
realistic view to the changes in this line item and ensures that the principles of consistency of 
valuation have been observed.  WT/BFA/W/454  
- 17 - 
  The WTO contacted the actuary for a revised actuarial valuation of the ASHI liability as at 
31 December  2016 based on the actual assumptio ns regarding the medical inflation by age . As a 
consequence the overall liability was immediately adjusted.  
 
83.  The correct changes in the line item "ASHI liability " are shown below:  
 31 December  2015 CHF 245.5  million ; 
 31 December  2016 CHF 226.3  million ; 
 31 December  2017 CHF 228.9  million . 
The yearly contributions by the WTO are paid from the regular budget "pay as you go " 
84.  The decrease of the ASHI liability from 2015 to 2016 was attributed to the new health 
insurance contract with the Allianz Company, which c ame into effect on 1 January  2017. The main 
impact due to the new contract was the decrease of the total monthly cont ributions 
(CHF 550 instead of CHF 621 before);  
The ASHI obligation as of 3 1 December  2017 is reflecting the WTO Secretariat strategy for 
managing health insurance liabilities as from December  2016. The ASHI obligation (proportion by 
WTO as employer) currently is not funded by the Member States . The yearly contributions by the 
WTO are paid from the regular budget "pay as you go ". 
 
Net assets ( total)  
Net assets/equity of the period is CHF  (514.9)  million  
85.  Considering all assets as at 31  December  2017 (CHF  877.1  million) and all liabilities 
(CHF 1,392.0  million ) there is a negative total net assets/equity of CHF 514.9  million 
(2016 : CHF -520.2  million). This is mainly due to the inclusion of the pension and ASHI liabilities in 
the financial statements and their valuation according to IPSAS . In particular the pension liability 
will be offset by future contributions and return on investment income.  
3.3.2   Statement of Financial Performance  
Revenue and Expenses  
The table below shows comparative figures of 2015, 2016 and 2017  
86.  The IPSAS equivalents of income and expenditure are revenue and expenses (as shown in the 
Statement of Financial Performance) . The tabl e presents the figures for 2015, 2016 and 2017.  
Table 2 – Statement of Financial Performance as at 3 1 December  2017*  
(In million  CHF) 
 2017  2016  2015  
Revenue     
Contributions/Members  195.5  195.5  195.6  
Contributions/Observers  0.6 0.6 0.7 
Voluntary contributions on trust funds  20.9 19.8 20.5 
Revenue from publications  0.5 0.6 0.7 
Other revenue  1.2 1.1 2.8 
WTO Pension Plan revenues  2.4 9.6 19.2 
Total Revenue  221.1  227.2  239.4  
    
Expenses     
Staff expenditure  (134.8)  (133.5)  (134.7)  
Actuarial cost for ASHI  (11.1)  (13.2)  (14.8)  
Actuarial cost for pension  (22.8)  (26.4)  (18.8)  
Temporary Assistance  (24.5)  (22.9)  (20.6)  
Supplies /other Service Costs  (15.4)  (15.5)  (16.3)  
Travel & Hospitality  (15.1)  (12.6)  (12.8)  
Implementing Partners  (4.4) (4.6) (4.7) 
Contribution to ITC  (18.8)  (18.8)  (18.5)  
Ministerial Conference Operating Fund (variation)  (1.0) (0.5) 0.6 WT/BFA/W/454  
- 18 - 
   2017  2016  2015  
Appellate Body Operation Fund (variation)  (0.3) (0.4) (0.3) 
Depreciation  (5.6) (5.7) (6.3) 
Provision for contributions in arrears  (0.5) (1.4) 0.9 
Depreciation of provision for right of use - CWR - 0.6 0.6 (11.3)  
Finance Costs  (0.3) (0.18)  (0.08)  
Loss on foreign exchange transactions  (0.2) (0.5) 0.3 
Total expenses  (252.0)  (255.5)  (246.0)  
    
Surplus (deficit) for the period  (31.0)  (28.2)  (6.6)  
* (Differences due to rounding).  
Source :  WTO Financial Statements 2017 and 2016 . 
Revenue  
Total revenue amounts to CHF  221.1  million  
87.  Revenue at year -end total led CHF  221.1  million (2016 : CHF 227.2  million).  
Contributions in 2017 total CHF  196.1  million  
88.  The most significant revenue item are contributions from Members and Observers amounting 
to CHF  196.1  million (CHF  195.5 + 0.6  million ).  
Voluntary contributions on trust funds amount to CHF  20.9 million  
89.  Voluntary contributions on t rust funds increased from CHF 19.8  million in 2016 by 
CHF 1.1 million to CHF  20.9 million in 2017.  
Expenses  
Total expenses amount to CHF  252 million  
90.  Total expenses as at 31  December  2017 are CHF  252 million (2016 : CHF 255.5  million).  
Staff expenditures of  CHF 161.7  million represent two thirds of all expenses  
91.  Two thirds of the expenses (66%) are chiefly due to staff expenditures (salaries, annual 
leave, pension, health insurance among others) with a total of CHF  161.7  million 
(2016 : CHF 173.1  million).  
In 2017 expenses for ASHI amount to CHF  11.1 million and for pension CHF  22.8 million  
92.  The expenditures for ASHI (CHF  11.1 million) and pension (CHF  22.8 million) are slightly 
lower than the year before (ASHI 2016 : CHF 13.2  million; p ension 2016 : CHF 26.4  million ).  
Expenditure for temporary assistance amounts to CHF  24.5 million  
93.  Another expenditure item is temporary assistance with an amount of CHF  24.5 million 
(2016 : CHF 22.9 million).  
WTO 's contribution to the ITC : CHF 18.8 million  
94.  The WTO's  contributio n to the International Trade Centre (ITC) is another significant expense 
which, as at 31  December  2017, amounts to CHF  18.8 million, just like the year before.  WT/BFA/W/454  
- 19 - 
  Net result/surplus (deficit) for the p eriod  
Net result (deficit) for the period amounts to CHF  (31.0)  million  
95.  The net result (deficit) for the period 2017 is CHF  (31.0)  million  compared to 
CHF (28.2)  million  in 2016 and after CHF  (6.6) million  in 2015.  
 
  WT/BFA/W/454  
- 20 - 
  4  PERFORMANCE AUDIT  
4.1  Travel Expenses  
Focus and Objectives   
Audit Scope and Audit Methodology  
96.  My staff audited the management of business trips as part of the performance audit . We 
looked into WTO Staff Regulations, WTO Staff Rules and WTOs Official Mission Travel Policy . For 
that reason, my staff used the new WTO travel platform MobileXpense for trav ellers and 
administration . To get an overview, we made a sample check of travel expense reports from 
employees and external travel lers. My staff checked the sample by using the MobileXpense 
platform and paper documents . Furthermore we conducted interviews with Management and 
expert staff . In addition we raised detailed questions in an information request which was 
responded by the Secretariat.  
Audit Objective  
97.  The main objective of the audit was to assess whether business trips were conducted in 
accordance w ith WTO's  underlying principles and whether efforts were made to identify and to 
make use of savings opportunities.  
WTO Principles on Official Travel  
Importance of official travel for the WTO  
98.  In 2017, the WTO spent CHF 15.1  million  on travel and hospitalit y. 
Internal regulations and rules concerning official travel  
99.  WTO Staff Regulations stipulate that the WTO should cover travel expenses of staff members 
(Regulation 9.1) . This should be done under certain conditions (WTO Staff Rule 112.1(ii)) . Official 
travel may be undertaken only if it is authorized in writing beforehand (WTO Staff Rule 112.4) . 
Travel expenses include transportation expenses, terminal expenses, transit expenses, travel 
subsistence allowance, authorized miscellaneous expenses incurre d durin g travel (WTO Staff 
Rule 112.5).  
Delegation of authority  
100.  The conditions under which travel expenses are reimbursed and the setting of standards for 
business travel are reserved to the Director -General (Staff Rule 112.5 (b), Staff Rule 112.6 (c)) . 
This can be delegated via a delegation of authority . The document "WTO Delegation of Authority" 
dated January  2013 was provided to my team . The Administrative Memorandum No. 971, "WTO 
Official Travel Policy ", which contains these standards, was signed by the Direct or Administration 
and General Services Department (AGSD) in November  2014. It is not yet included in this 
aforementioned document.  
I recommend regularly updating the delegation of authority  
101.  To ensure effectiveness of internal regulations, I recommend regul arly updating the 
document "WTO Delegation of Authority" . It should be noted that there is a delegation of authority 
to the Director of the AGSD for the adoption of the Travel Policy.  
 WT/BFA/W/454  
- 21 - 
  Cost of Air Travel  
Reducing cost of air travel  
102.  Most of WTO official tra vels are air travels . In 2017, cost of air travel amounted to more than 
CHF 6  million , thus representing a large proportion of total travel costs.  
Many airlines offer reimbursement programs . Participation in such programs may be independent 
of bonuses from  frequent travel ler programs in which travel lers participate individually . To date, 
WTO has not entered into any contracts with airlines to participate in such reimbursement 
program mes. 
 
I recommen d considering the participation in rei mbursement programs o f airlines  
103.  The WTO should consider participating in airline reimbursement programs in order to realize 
savings.  
WTO should identify the airlines most frequently used for official travel . On this basis, the WTO can 
check whether travel expenses can be reduced by participating in reimbursement programs of 
these airlines . This could be a way to reduce travel expenses, without restricting official travel lers. 
 
New Travel Platform MobileXpense  
Two different ways to apply for and settle business travel  
104.  The W TO uses two completely different procedures for applying for and billing missions . For 
external persons, applicants, consultants, for Dispute Settlement Panelists and Appellate Body 
Members a paper -based application and billing procedure is in place . WTO staff uses the Travel 
Platform MobileXpense . This Platform was newly implemented in the end of 2016 . My team has 
been granted access to MobileXpense . It was thus possible to fully understand missions, since in 
MobileXpense the application by the traveller ; the permit, the travel expenses as well as the billing 
are transparent . Essential documents (e.g. boarding passes and hotel bills) are stored 
electronically.  
I recommend checking to expand MobileXpense to  more categories of travellers  
105.  My team got the impre ssion that MobileXpense is an adequate tool to transparently map 
travel processes and standardize billing.  
If the introductory phase has been successfully completed, I recommend that the WTO check 
expanding the application of MobileXpense to other categori es of travel lers. 
 
Cash A dvances  
Travel policy limits an advance payment to 80 % of estimated DSA  
106.  A staff member authorized to travel shall carry sufficient funds for all current expenses, if 
necessary by securing an advance of funds (WTO Staff Rule 112.7) . WTO's  official travel policy 
limits an advance payment to 80 % of the estimated daily subsistence allowance (DSA).  
MobileXpense does not comply with official travel regulations when calculating advances.  
 
MobileXpense considered two addition al DSAs to calc ulate an advance  
107.  In his travel request the travel ler indicates the duration of the mission . Unlike travel policy, 
MobileXpense considered two additional DSAs to calculate an advance . This should take into 
account possible travel -related days regardless of the additional information the travel ler made 
before.  WT/BFA/W/454  
- 22 - 
  The process of repayment of  overpayment is additional work  
108.  As a result, the advance often exceeded the reimbursable travel expenses . The travel service 
team then informed the employee in each individua l case to process the repayment of the 
overpayment . This created additional work that can be avoided by complying with the travel 
policy.  
I recommend  calculating ad vances in line with regulations  
109.  MobileXpense should calculate advances in line with regulat ions. In case that Management 
wants to change the calculation of advances, I recommend revising the rule . Unnecessarily high 
advances should be reduced to avoid costly additional work . The WTO should ensure that the 
program calculates the advance taking in to account the information of the travel ler. 
Application for Travel Authorization  
Application for authorization shall be submitted at least ten working days befo re the 
start of official travel  
110.  Travel policy requires the travel ler to apply for authorization  as early as possible . The 
travel ler shall whenever possible apply for authorization at least ten working days before the start 
of official travel, in order to benefit from more economical fares and to provide sufficient lead -time 
to obtain the necessary t ravel visas, security and health clearances ( Travel Policy, No. 3.2.).  
My team noted that many travels were applied for less than ten working days before official 
mission started . Sometimes the travel documents revealed that the traveller had been aware of  
the official travel several time before . However, application for authorization was submitted late.  
 
Required business trips should be  requested as early as possible  
111.  Travel requests were often submitted unreasonably late . This was not in line with the travel 
policy and maybe prevented taking advantage of economical fares.  
Required business trips should be requested as early as possible . This allows opportunities to book 
cheaper airfares.  
 
I recommend that travel lers be requested to make travel claims as  early as possible ; if 
submitted shortly before the start, this should be justified in the travel request.  
112.  I suggest that the WTO request travel lers to make travel claims as early as possible . In 
addition, WTO should evaluate its 10 -day scheme currently in  place and compare it with the 
regulations of other organizations.  
If the travel ler places the travel request shortly before the start of the journey, this should be 
justified accordingly in the travel request.  
 
Maintaining the Travel Platform MobileXpense  
Travel expense reports in Mob ileXpense are considered "open"  
113.  In some cases, travel expense reports in MobileXpense are still considered "open" even 
though everything is done . This only occurs when the traveller  has cancelled  travel . A travel 
expense state ment is omitted, since the traveller  cannot charge any costs . Nevertheless, the travel 
is created in MobileXpense and the WTO sometimes has bought and returned flight tickets . Such 
cases appear to be "open" in MobileXpense, although there is no need for fu rther action.  WT/BFA/W/454  
- 23 - 
  I recommend making a settlement as soon as possible, which means when cases are 
technically completed.  
114.  MobileXpense presents some cases as "open" without the need for further action.  
Therefore I recommend making a settlement as soon as possib le, which means when cases are 
technically completed in MobileXpense.  
 
4.2  Consultants  
Focus and Objectives  
Audit focus  
115.  As part of the performance audit my staff audited "Consultants " in general, which means the 
use and handling of consultants within WTO . We looked into WTO Rules, Regulations and 
Guidelines . To get an overview, we made a sample check by using WTO systems and paper 
documents . Furthermore we conducted interviews with Management and staff.  
Audit objective  
116.  The main objective of the audit was to e valuate the existing approach of using consultants 
and to analy se underlying processes and guidelines.  
Guidelines and Manuals used by WTO  
There are two divisions responsible for recruiting consultants : AGSD and HRD.  
117.  The WTO purchases different consulting -services e.g. computer consultants, translators and 
interpreters, panelists and other consulting services like trainings . In 2017, total expenditure of 
the WTO for consultants amounted to CHF 5.2  million. T here are two divisions responsible for 
recruiting consultant services . The Administration and General Services Division (AGSD) is 
responsible for procurement of the consultant firms . HRD recruits individual consultants and 
related service providers (individual consultants) . For the purchase of services fr om consultant 
firms AGSD has defined procurement regulations in the  WTO Procurement Manual  (Procurement 
Guidelines).  
The Procurement Guidelines define the procurement process (forma l competition above 
CHF 20 ,000)  
118.  These Procurement Guidelines contain inter alia details for the procurement process ; 
procurement methods in relation to the amount of the project (formal competition for 
procurements valued above CHF 20,000) and authorities . The recruitment of individual consultants 
is governed by the Administrativ e Guidelines for establishing Special Service Agreement for 
consultants and panelists . The Guidelines contain inter alia  regulations for the entitlements of 
consultants and panelists (fees, travel costs, etc.) . Similar regulations as in the Procurement 
Guidelines especially for competitive procurement - are not included in the Administrative 
Guidelines . An overarching guideline does not exist.  
Audit and R ecommendations of Internal Audit/OIO  
Internal audit (today : OIO) audited Consultant s and Service Provid ers in 2012  
119.  The Office of Internal Audit (OIA), nowadays Office of Internal Oversight (OIO), audited the 
management of consultant and related service providers at the WTO in 2012 . The OIA observed 
that the Administrative Guidelines do not require individua l consultants to be contracted through a 
competition process . Thus, the WTO would be exposed to the risk of reduced accountability in the 
use of consultants and in the determination of their remuneration . This may result in abuse, 
inefficient use of resour ces and subsequent financial loss to the WTO . OIA recommended reviewing 
the Administrative Guidelines to apply the Procurement Guidelines and ensuring competition in the WT/BFA/W/454  
- 24 - 
  process of recruiting individual consultants . The follow -up of OIA 's audit revealed th at HRD drafted 
an update of the guidelines, which includes a competitive selection process.  
Recommendations of OIO are still ongoing  
120.  These guidelines were expected to be released before the end of 2016 . At the time of my 
audit in April 2018 the updated gu idelines were still in process.  
Two different processes for recruiting consultants within WTO  
There are two different processes i n the two responsible divisions  
121.  The absence of overarching rules for recruiting consultant services leads to different 
processes in the two responsible divisions which contradict the requirement of consistent 
administrative procedures . I agree with OIA that the current practice of recruiting individual 
consultants without competitive acquisition is not adequate in terms of  efficiency and compliance 
and insufficient to protect staff against corruption.  
I recommend standardizing recruitment processes for individual consultants according 
to the Procurement Guidelines  
122.  For this reason I recommend standardizing recruitment proce sses for individual consultants 
according to the Procurement Guidelines . Therefore I regard it as necessary that HRD implement a 
guideline which contains standards for a (competitive) recruiting process.  
Sample Check of Consulting Services  
My team checked a sample of consulting firms and individual consultants.  
123.  My team checked a sample of WTO -related consulting  services in 2017 (consulting firms and 
individual consultants) . All cases corresponded to the quality and formal requirements . The WTO 
required con sultant firms in a competitive procurement process . All transactions were covered by 
contracts and were correctly accounted/administrated in Oracle.  
5  CASES  OF FRAUD OR SUSPECTE D FRAUD  
One case of severe fraud detected by WTO  
124.  During our audit, my team was in formed by OIO about one case of severe fraud . The case 
regarding home leave and dependency allowance was detected in 2017 . The incumbent was 
sanctioned and the defrauded amounts were reimbursed to the WTO.  
6  ACKNOWLEDGEMENT  
I am grateful for the su pport rece ived during the audit  
125.  I wish to express my appreciation for the cooperation and assistance extended by the 
Director -General, the Management and staff of the WTO. I appreciate that the Secretariat is 
continu ously reviewing and improving the financial statem ents, thus making the job for me and 
my team easier . I am very grateful for their assistance during the entire external audit process.  WT/BFA/W/454  
- 25 - 
  LIST OF ABBREVIATION S AND ACRONYMS  
ABS    Appellate Body Secretariat  
AGSD     Administration and General Services Division  
ASHI    After Service Health Insurance  
CHF    Swiss Francs  
CWR    Centre William Rappard  
DDG    Deputy Director -General  
DG    Director -General  
DGO    Office of the Director -General  
DSA    Daily Subsistence Allowance  
EUR    Euro 
FS    Financial Sta tements  
FTE    Full Time Equivalent  
GATT     General Agreement on Tariffs and Trade  
GBP    British Pound  
HL    Home Leave  
HRD    Human Resource s Division  
IAS    International Accounting Standards  
INTOSAI    International Organization of Supreme Audit Institutions  
IPSAS     International Public Sector Accounting Standards  
IPSASB    International Public Sector Accounting Standards Board  
ISA    International Standards on Auditing  
ISSAI     International Standards for Supreme Audit Institutions  
IT    Informat ion Technology  
ITC    International Trade Centre  
LAD    Legal Affairs Division  
OIA    Office of Internal Audit (today : OIO) 
OIO    Office of Internal Oversight  
PM    Procurement Manual  
SNB    Swiss National Bank  
UBS    Union Bank of Switzerland  
UN    United Nations  
US    United States  
USD    United States Dollar  
VAT    Value Added Tax  
WCF     Working Capital Fund  
WTO    World Trade Organization    
  WT/BFA/W/454  
- 26 - ANNEX /LIST OF R ECOMMENDATIONS  
No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
1 Uncollectible 
contributions  3.2 / 2014  Pursuant to Regulation 14 in the WTO Financial 
Regulations Members and Observers with arrears 
shall be subject to  Administrative Measures . 
Furthermore, there might be (inactive) Members 
without a payment plan but with long -term 
outstanding contributions (e.g.  states no longer in 
existence) . As required by IPSAS contributions 
uncollectible shall be completely written off. This is 
not a standard practice within WTO.  
I recommend developing a practice or procedure and 
deciding how to deal with uncollectible contributions 
(e.g. in the case of states no longer in existence like 
Yugoslavia).  The uncollectible contributions f rom Former 
Yugoslavia were written -off in 2015 and 
incorporated in the audited financial 
statements.  Done 
2 Accounting 
transactions foreign 
currencies  3.3.1 / 2014  WTO uses the United Nations Operational Exchange 
Rate for accounting transactions concerning foreign 
currencies . There is no official decision or document 
supporting this practice.  
I recommend that the Secretariat ask for an 
authorization and  an official decision to use 
UN Operational Exchange Rate as official accounting 
rate for WTO transactions.  The Secretariat accepted the recommendation 
and presented during our audit a memorandum 
concerning this topic signed by the DDG.  Done   
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3 Recoverable 
US taxes  3.3.1 / 2014  Other receivables include recoverable taxes, e.g. from 
the United States (US) or Switzerland . Staff members 
of WTO, like those of other international 
organizations, are exempt from income tax . 
Nevertheless, the US requires its citizens and 
residents to pay tax worldwide . The WTO pays 
estimated tax payments in advance and  asks for a 
reimbursement from the US Government based on an 
agreement between WTO and US of 
22 December  2000. 
I recommend, just like m y predecessor the years 
before,  pursu ing efforts to accelera te the refunding 
procedure and negotiating  and agree ing with the 
US Government on a similar reimbursement method 
based on the ILO approach.  Recommendation a ccepted  
All past backlog of claims solved, including for 
2015.  
Only claims for US taxes for 2016 are to be 
reimbursed in 2017, given the one year 
time lag. Done 
4 Short -term 
employee benefits  3.3.1 / 2014  I requested respectively suggested several 
adjustments regarding the figures, phrases and 
presentation in the tables of Note 14 . In particular, 
this pertained to updated calculation bases and the 
clarity of descriptions of provisions concerning 
short-term employee benefits.  The Secretariat accepted the recommendation 
and will follow the suggested indications.  Done 
5 Staff expenditures  3.3.2 / 2014  For improving transparency I recommended that 
more explanations and more details in Note 19 for 
expenses, especially for staff expenditures, e.g. a 
table with details to the different types of staff 
expenditures be given.  The Secretariat accepted the recommendation 
and included Table 62 in the report with details 
concerning staff expenditures including trust 
funds.  Done 
6 Temporary 
assistance  3.3.2 / 2014  Like for staff expenditures I recommend giving more 
details concerning this item in Note 19.  The Secretariat accepted the recommendation 
and included Table 63 in the report with details 
concerning temporary assistance including 
trust funds.  Done   
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7 ITC consolidation  3.3.2 / 2014  The ITC is a joint technical cooperation agency of the 
UN and WTO . Originally established in 1964 by the 
General Agreement on Tariffs and Trade (GATT), ITC 
has operated since 1968 under the joint aegis of 
GATT and the UN . It is operated jointly (as outlined in 
the financial statements of WTO) and therefore – 
based on IPSAS 8 – a jointly controlled entity.  
WTO is documenting the a bove mentioned payment 
to ITC as expenses within the statement of financial 
performance and is not consolidating ITC . According 
to IPSAS 8 ITC is legally a jointly controlled entity ; 
important is only the ability, not the de facto  control ; 
therefore WTO ha s to consolidate ITC.  
Even if actually WTO might have just limited or no 
control, the legal situation still defines ITC as a jointly 
controlled entity and there is no proof or document 
stating  any other fact . I recommend that WTO 
negotiat e with ITC or with the UN and clearly defin e 
the legal situation, especially concerning control . If 
there might be a new contract documenting that ITC 
is just a grant taker without any control from WTO, 
this reservation could be removed and WTO financial 
statements might be completely in line with IPSAS.  According to new IPSAS standards 35 -37 
consolidation is no longer r equired by the EA 
(details see r eport).  Closed  
8 Procurement 
planning  4.1 / 2014  The WTO Secretariat has to ensure that the divisions 
reliably define their needs before allocating the 
divisional budgets . I recommend that WTO specify the 
procedures for needs assessment and the 
requirements of procurement planning . To ensure 
compliance with the regulations and coherence 
between all divisio nal practices I recommend that 
WTO defin e clear responsibilities and establish high -
level managerial approval of the procurement plans.  All PPs have been presented except the ITSD 
which is scheduled by mid -May. Done   
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9 Use of consulting 
services  4.1 / 2014  To minimiz e risks of duplication of efforts, impropriety 
and fraud when using  consulting services, I 
recommend that WTO Secretariat strengthen its 
internal coordination and control . The Secretariat 
should examine how the control mechanisms could be 
suppor ted by an automated comparison of data.  A restricted folder has been created in 
L:\Restricted \SSA List to b e shared between 
HRD staff and p rocurement . This folder is 
managed by HRD and contains all the 
individuals who have S SA contracts with the 
WTO. The procurement team has been given 
read only rights to the folder so they are able 
to check and ensure a consulting firm does not 
also have an individual contract.  
HR discussed with the IT division options for an 
automated checking process and HR has 
decided t o also add a declaration to the 
contracts asking the individual consultant to 
declare whether they have any other contracts 
with the WTO.  Done 
10 Amendments to 
contracts  4.1 / 2014  I recommend that the Secretariat implement 
procedures to ensure that requesting units always 
have to involve the Procurement Section in advance 
before they accept modifications to the purchase 
order, even more so if these modifications result in an 
adjustment of the price . To ensure sound 
management of the WTO  budget, such modifications 
have to be subject to the identification and availability 
of sufficient funds in advance . I also recommend 
establishing an automat ed notification to the 
Procurement Section if the amount of  the purchase 
order diverges from the amount requested in the 
invoice.  Recommendation partially accepted  
In order to enhance and implement the 
recommendation the policy for invoice 
settlement will be amended . The amendment 
shall rule each cases of mismatch  between POs 
and related invoices and shall provide 
procedural guidance to stakeholders . 
Concerning the establishment of automatic 
notification that include the cases covered by 
the policy, this was assessed by ITSD but was 
not consider as a priority item among the ERP 
planned updates.  Closed    
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11 Contract 
management  4.1 / 2014  I recommend de veloping a procedure to ensure 
appropriate documentation and that availability, 
reliability, and integrity of information and records on 
all procurements be safeguarded . I also recommend 
evaluating the organizational links between the 
Procurement Section and the requesting divisions . In 
addition, it might prove appropriate to highlight the 
importance of sound contract management and 
transparent documentation to the staff members of 
the Secretariat.  Procurement has implemented the e -tendering 
system on 1 4 February  2017. The e-tendering 
solution package includes a contract 
management (CM) Module provided at no 
additional cost to WTO for year 1 . The module 
has some interestin g features such as the 
email prompts for contract renewals, warning 
flags when contract documents are past their 
expiry date or email reminders for expiring 
contracts . The purchaser can easily set an 
alarm and proceed in time with a new tender 
before expir ation of the current contract.  Done 
12 Adoption of IT 
standards  4.2 / 2014  I recommend that the Secretariat apply international 
standards and best practices for the IT environment 
in combination with the establishment of its IT policy 
framework (see above) . In doing so, the Secretariat 
should consider its individual ch aracteristics like its 
size and tasks and modify suitable  standards 
according to its requirements . Only in exceptional 
cases the Secretariat 's special needs should  justify an 
exception or e xtension ; it may define and document 
these special guidelines for itself . Depending on their 
importance and nature, different standards can be 
defined as mandatory or optional . However, some key 
elements  should be implemented as a minimum to 
reach an appropriate level of IT governance maturity . 
These standards should cover the ar eas mentioned 
above (IT  governance, IT service management, IT 
project management and information security 
management) and could also be extended to cover 
efficiency issues and the compatibility requirements of 
applications and databases . Adherence to these  
standards should be monitored in an appropriate 
manner.  The formal project management guideline was 
distributed in June . A recent amendment was 
made to improve the project closure process.  
174 changes have been through a formal 
change management process s ince May 2017. 
The Change Advisory Board (CAB) meets every 
week to review the proposed changes that are 
not pre -approved and a special process has 
been implemented for urgent changes . While 
most changes are infrastructure related, the 
application team have  also started going 
through the same process for their application 
releases.  
Problem management has been formally 
functioning for the past 2 months and it reports 
to the management team once a month with 
its progress and the ability to escalate if it 
canno t resolve issues.  Done   
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13 Business strategy, 
IT strategy  4.2 / 2014  I encourage the Secretariat to define and document a 
general business strategy with an adequate level of 
detail not only but also as a requirement description 
in regard to a needs -based IT environment . I 
recommend that the Secretariat set up an appropriate 
IT policy framework that should be aligned with the 
business strategy.  
The framework should fulfil the requirements 
mentioned before as a minimum standard containing 
documentation of needs analyses, assessment of 
existing systems, current procedures, planning, 
strategies and also future targets . The existing 
documents could be used as input when they have 
been updated . The initiatives and activities already in 
place to improve elements of the Secretariat 's IT 
policy could be integrated in the preferably 
overarching approach . Management should ensure 
that the components of this framework are 
periodically updated and communicated to all relevant 
parties across the Secretariat . It should al so monitor 
their implementation and evaluate the results.  The portfolio for 2017 was selected in January 
(attached ITSSC summary and portfolio "live" 
document in attachment split between 
17 January  decision and live projects) and the 
process of managing it  is ongoing as a D2D 
operational process (monthly PMO, quarterly 
ITSSC meetings).  Closed  
14 IT security  4.2 / 2014  I acknowledge the Secretariat 's efforts to improve 
WTO's IT sec urity in order to reduce the 
IT environmental risk exposure . I strongly 
recommend that the Secretariat follow the 
recommendations of the IT security assessment as 
soon as possible . Without interfering with the ongoing 
audit of the OIA on this matter I will continue to 
monitor the improvement of WTO 's IT security.  See.4.2 / 2015 below  … . Closed    
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15 Blacklist  3.1 / 2015  During our sample check my team noted that WTO is 
not using a "blacklist" or "sanction list" (similar e.g. to 
UN procedures) . There is no procedure or policy how 
to handle this issue for contracts and procurement.  
I recommend considering the implementation of a 
blacklist or sanction list as this is common practice in 
other international organizations.  Since February  2017, WTO has implemented 
the e-tendering module through the United 
Nations Global Marketplace (UNGM), the 
common p rocurement portal of the 
United  Nations system of organizations . As part 
of the registration application all v endors are 
required to declare (both for parent and/or 
subsidiary entities, as applicable) that they are 
not, nor associated with a company or 
individual, under procurement prohibition by 
the United Nations, including but not limited to 
prohibitions derived from the Compendium of 
United Nations Security Council Sanctions Lists.  Done   
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16 Cash situation/  
negative interests  3.3.1 / 2015  Following the SNB decision main partner banks 
introduced negative interest rates as of 1 April 2015. 
Currently, the WTO is benefitting from an exemption 
limit of CHF 50  million  by the UBS and CHF 40  million  
by Credit Suisse resulting  in negative in terest of 
approximately CHF 400,0 00, based on average cash 
balances for 2015, after factoring in the thresholds at 
which no interest is levied . But these limits can be 
changed unilaterally by the UBS and /or Credit Suisse 
at short notice, so the WTO is being faced with a risk 
of negative interests of up to CHF 1  million  per annum 
if the exemptions are no longer granted.  
To reduce risks and to prevent negative interests we 
recommend the following options:  
 premature repayment of ongoing loans su ch as 
the building loan, if possible;  
 review/update the financial investment policy;  
 negotiate wi th the main banks and the 
Swiss  authorities on mid -term and long -term 
exemptions for negative interests (this could be 
more effective together with other international 
organizations and institutions based in Geneva 
e.g. the UN) . • The loan agreement with the Swiss 
Government has a clause that only allows 
payment of the annual repayment for the given 
year. Most institutions in Switzerland are 
averse to holdi ng large sums of cash due to the 
negative interest regime in place . Furthermore, 
the cash received in any given year is 
attributable to that year's budget and 
considering that there is usually a lag in 
contributions received, cash flow is a strong 
consider ation that would not make it prudent 
to use funds to pay in advance.  
• A new treasury policy was approved, 
implemented and presented to the CBFA in 
2016. This incorporates several changes such 
as the extension of the investible asset classes 
to include bon ds and longer -dated term 
deposits and a  revision of the minimum 
credit -rating to A -. 
• Attempts to engage with other international 
organizations based in Geneva were not 
successful . Most of the entities stated that the 
Swiss Authorities that they had spoke n to 
stated that this was a systemic matter taken 
by the Central Bank . It affects all institutions, 
including Swiss companies and government 
bodies, rendering exceptions unfeasible for any 
party.  Done   
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17 Buildings  3.3.1 / 2015  CWR building is granted by the Canton of Geneva and 
the FIPOI as a 99 -year surface right.  
Given the current situation we recommend the 
following (in accordance with IPSAS 17):  
 entering an asset of CHF 60  million  (or an 
estimated equivalent value of the CWR buil ding 
and the use of the land), position "CWR 
building "; 
 depreciating the asset by 1/99th annually so as 
to bring the value of the use of the building 
down to zero at the expiry of the surface right, 
starting in 2015 (in 2015 pro rata for four 
months) ; 
 entering a corresponding equity of CHF 
60 million  (or the estimated equivalent value) as 
liability.  The Secretariat has accepted and immediately 
implemented the recommendation of the 
Auditor.  Done 
18 Inventory  3.3.1 / 2015  There is no regular physical inventory for assets 
(exception : publications) . WTO has no suitable 
stocktaking system, depreciation is calculated 
manually.  
I recommend that WTO implement a suitable system 
which contains all assets.  Asset i nventory software was selected through 
a tender process . The service provider was 
implemented during second and third quarter 
of 2017 and went live by September  2017. 
In July 2017 an inventory of all assets was 
done, and all data were transferred in the new 
system . The new software is running in full 
capacity since 1 October  2017. 
 Done   
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19 Home leave  3.3.1 / 2015  Regarding the finding (see para . 25) in our sample 
check we additionally looked into the approved home 
leave (HL) in 2014 and 2015 with a total amount of 
CHF 2 ,873,352 and related procedures . In this 
context we filtered the HL of beneficiary staff from 
selected countries all over the world . The analysis of 
the lump sums showed a wide variation of home leave 
amounts paid even for the same country or town.  
I recommend reviewing the rules for home leave . A 
benchmark with other international organizations 
could be helpful.  The OIO conducted an internal audit of home 
leave in 2017 and the External Auditors have 
received a copy of the internal audit report 
(report OIO/IA/2017 -01). 
HRD is currently draf ting a new home l eave 
policy, which will incorporate the 
recommendations contained in the internal 
audit report.  
The first follow -up of the recommendations will 
be conducted in Q4 this year.  Ongoing  
20 Establishing an 
Office of Internal 
Oversight  
 4.1 / 2015 WTO established an Office of Internal Oversight 
(OIO) . The WTO expanded the tasks of the former 
Office of Internal Audit (OIA) but it is not providing 
the new OIO with more audit staff.  
I recommend that WTO evaluat e the number and 
qualification of sta ff necessary to fulfil the tasks of the 
OIO. I recommend reviewing the new audit work p lan 
so that it is more based on comprehensible criteria 
like volume of costs or level of risk as well as on the 
provided staff capacity.  The Head of the Office of Internal Oversight 
assumed duty in September  2016. He 
presented the OIO's bi -annual plan (2017 and 
2018) to the CBFA in February  2017. This 
included the staffing plan with an additional 
resource to be recruited within the next 
12 months. 
 
A working group that had been set up to 
assess whether to establish an Audit 
Committee at the WTO has concluded its 
mandate . Its conclusion was that at this stage 
an Audit Committee should not be established.  Done 
21 Staffing of the posts 
in the OIO  4.1 / 2015  All posts of the OIO were vacant when we started to 
audit this issue in November  2015. No deputy for the 
OIO was installed . There were no internal audit 
reports issued for the years 2014 and 2015 . Since 
December  2015 there is an interim head of OIO. 
I recommend that WTO identify important or critical 
positions in the WTO in general and determine 
replacement rules for these posts.  The Office is staffed with two people (head and 
an administrative assistant) . A budget 
allocation has been made to rec ruit a third staff 
member (an auditor).  Done   
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22 Risk management  4.1 / 2015  The WTO established a risk management policy for 
the entire Secretariat at the end of 2012 with the 
objective to strengthen its internal governance 
structure and its internal control system . Risks of 
damages in the WTO  building were not listed in the 
risk register.  
I recommend  includ ing mitigating measures faster.  The Risk Manager closely monitored the 
implementation of mitigation measures to 
ensure that the probability of the occurrence of 
the risks and their impacts remain low.  
On critical and high priority risks, the Risk 
Manager monitored the development of risk 
mitigation plans and the execution of 
immediate actions.  
As a result of this cyclical and iterative process, 
additional risk issues were closed.  
The Deputy Director -General in charge of 
administration reviewed and endorsed the risk 
register and submitted to the Director -General.  
 An annual Secretariat risk management report 
on critical risks was presented to the 
Commi ttee on Budget, Finance, and 
Administration on 3 1 March  2017. Done 
23 Strategic r eview  4.1 / 2015  I recommend in a first step publishing  an overarching 
document which summarizes the idea, the objectives 
and the achieved results of the strategic r eview . 
Furthermore I recommend that WTO extend the 
initiative by aspects which concern the core business 
of the W TO to reach the objective of a strategic 
review.  The strategic review that the DG mentioned in 
his maiden speech forecast on the Secretariat 
and its op erations . The overarching document 
of the strategic review can be found in the 
following link 
http://intranet/en/news/archive/news0059.htm  
The DG's speech set the objectives and the 
working metho ds. Related documentation and 
the status of the strategic review are 
constantly reported on a dedicated intranet 
page.  
http://intranet/en/wto_me/review/review.htm  
There have been several achie veme nts i.e. 
promotions, m obility exercises and many 
others (access via the link above).  Done   
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Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
24 IT governance  4.2 / 2015  My team analysed modifications of existing 
documentation concerning IT, information security 
and information confidentiality and took note of the 
efforts  for advancing the IT strategy in the 
Secretariat . We also monitored the processing of 
examinations mad e by or on behalf of the former 
Office of Internal Audit (OIA), respectively the new 
Office of Internal Oversight (OIO) . Recommendations:  
 to appl y international standards and best practices 
for the IT envir onment covering the areas of 
IT governance, IT service management, IT project 
management and information security 
management and to implement them in the 
existing and f uture structures and documents;  
 to define and document a general business strategy 
with an adequate level of detail not only but also as 
a requirement description in regard to a 
needs -based IT environment . I encourage in this 
regard the Secretariat to promote the current 
initiative to discuss strategic and scenario planning . 
If the realisation of a business strategy will no t be 
practicable for the WTO, business requirements 
concerning IT should be analysed and collected in 
the whole organization with a common approach 
and also specified and documented in an 
overarching IT strategy . 
 to set up an appropriate IT policy framewor k, 
aligned with the general business strategy or rather 
specified business requirements, containing the 
results and the documentation of requirement 
analyses, assessment of existing systems, current 
procedures, planning, strategies and future targets . 
In a first step I suggest to finalize and implement 
the available drafts of the "WTO Enterprise 
Architecture " and the "2016-2019 IT  strategy ". Reco1 : The Secretariat agrees with 
recommendation.  
The plan the Secretariat is following is along 
these lines : Formal  incident and request 
management implementation by end 2016, 
elimination of legacy platform and leveraging 
of an ITIL compliant tool to improve our 
software asset management and contract 
management in 2016 (manage engine/service 
desk plus), problem manager  role established 
in 2016 and effective beginning in 2017, 
change and release management and CMDB to 
be initiated in 2016, information security policy 
development and information risk framework 
all planned in 2016.  
Reco2 : The Secretariat agrees that having  a 
business strategy would be useful for 
IT strategy and planning . ITSD participates 
with other divisions to the discussions about 
strategic and scenario planning.  
Reco3 : The 2016 -2019 IT strategy was 
developed after talking to all business divisions 
about  their requirements, reviewing the 
existing systems, evaluating the results of a 
user survey and evaluating our maturity 
against a COBIT framework . It will be updated 
every year ensuring the business requirements 
are up to date . We are not planning to 
comp lete the overall IT architecture but to 
focus our effort on the development of data 
architecture . Precise planning of how to do this 
work will be done in the next few weeks.  Done   
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25 IT security  4.2 / 2015  I recommend that OIO  and IT security staff focus 
their work on the implementation of the IT security 
assessment 's recommendations to achieve a 
significant improvement of the WTO 's IT security.  
I also recommend that Management take into a ccount 
that for some staff the Minister ial Conferences held 
every two years are an extensive extraordinary 
workload in addition to their regular duties . I suggest 
considering these tasks in regard to the analysis of 
personnel requirements.   We are progressing in several major domains 
of the aud it. Specifically, the overarching 
information security policy as well as 
confidentiality classification policy has been 
validated at the latest session of ITSSC . 
Furthermore, the key information assets 
inventory is progressing . The recruitment of 
the secur ity engineer is completed to 
strengthen the IT security requirements.  
Concerning the second recommendation about 
personnel requirements, the 2016 -2019 project 
planning included in the IT strategy takes into 
account ministerial conference resource 
requireme nts. Done   
  WT/BFA/W/454  
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Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
26 Information 
confidentiality  4.2 / 2015  In connection with the improvement of IT security 
governance, the Secretariat drafted a new 
"Information Classification Policy " with an 
accompanying "Technical Standard ". I appreciate the 
current approaches to update the WTO 's polic y 
concerning information confidentiality . However , 
documentation of the processes was not adequate to 
counteract the risks for confidentiality of data and 
information.  
I recommend providing the WT O staff with extended 
guidelines and appropriate procedures on how to deal 
with confidential information.  The Secretariat agrees with this 
recommendation.  
An online training for all WTO staff is being to 
be prepared : The content is based on a UN 
common cur riculum which is being adapted to 
a WTO case . In addition, the IT management 
was reinforced with clearer lines of ownership 
within the division and the formal approval for 
a new head of applications last week.  
The intranet information was also updated.  
The draft of the Information Confidentiality 
Classi fication Policy has been finaliz ed by the 
ITSSC, and submitted for review and approval 
to the Joint Advisory Committee, as it affects 
staff roles and responsibilities . Review of the 
policy has been undertaken  by the JAC and 
specific suggestions made to the originators of 
the document and they will revise the proposed 
texts.  
Once finaliz ed, information classification 
guidelines will be made part of the user 
awareness programme.  
Technical tools to support the po licy and aid 
the users are planned for implementation 
(public key infrastructure project approved for 
2017) and study (data labe lling/data leakage 
prevention systems to be evaluated in 2017) . 
The results of the information assets 
inventory/risk assessment (which map directly 
to the policy categories) would define further 
practical application measures of the policy . 
The policy will be included in the upcoming 
CBT InfoSec awareness course.  Ongoing    
  WT/BFA/W/454  
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Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
27 Facility management 
strategy and 
framework  4.3 / 2015  My team analysed WTO 's facility management (FM) 
activities, its organi zational structure, procedures and 
existing regulations as part of the performance audit . 
We analysed the existing policies, guidelines and 
other relevant documentation like files and recor ds 
held by the WTO Secretariat . The WTO Secretariat 
stated that it has not adopted the relevant FM 
standards and has currently no specific overarching 
FM strategy in place . It further mentioned that recent 
FM activities rather were in response to current i ssues 
than to support proactively maintenance  of the 
building and premises . 
I recommend that WTO Secretariat apply 
internationally  accepted FM standards and best 
practi ces as a guidance to its FM activities in order to 
ensure the most effective and efficie nt use of 
resources . In this regard I encourage the WTO 
Secretariat to initiat e and periodically updat e and 
enhanc e a generic "FM policy framework " considering 
the already existing documents as input . I further 
recommend improving the internal and external  
coordination and communication.  The Secretariat shared the draft Strategic 
Facilities Plan with the External Auditors and 
subsequently made amendments to take 
on-board some of the suggestions expressed 
by the external auditors during a meeting they 
held with the relevant Secretariat staff 
members to discuss the draft Strategic 
Facilities Plan.  
The DDG in charge of administration has 
endorsed the Strategic Facilities Plan and it is 
being implemented.  
After an extended assessment process 
regarding the pros and cons of establishing an 
FM Committee, the conclusion was that there is 
a proliferation of committees in the 
organization . Therefore, the Secretariat does 
not agree to establish an FM Committee . What 
the Secretariat interpreted from the audit 
recommenda tion is that various sections and 
divisions involved in matters pertaining to the 
building and premises have to engage more 
and collaborate on aspects dealing with the 
ongoing maintenance, renovation, 
enhancements, refurbishment, management of 
the grounds and other aspects relating to the 
WTO facilities . The Secretariat has thus 
instituted a core team comprising of the chiefs 
of the FM, Security and Conference Services to 
discuss any planned activities and actions 
affecting the building and make 
recommendat ions to the Director AGSD for 
decision -making, as appropriate, before these 
are undertaken . The core team will engage 
other relevant parties as and when necessary . 
As an example, this team, together with a 
person from Budget and Finance, worked 
together to  develop the Strategic Facilities Plan 
referred to above.  Done   
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28 Staff distribution  4.3 / 2015  The reduction of posts is  decided  on a case to case 
basis, within FMS and SSS there is no concept 
reflecting the minimum  staff requirements.  
I recommend initiating an overarching concept 
reflecting the minimum staff requirements for FM.  
Although the auditors based their recommendation on 
the last recent staff cuts within FMS and SSS, a 
concept is basically necessary to define staff 
requirements within FM Services . Without an 
objective asse ssment of FM Services, there is  no 
evidence that FM Services is currently or in future 
understaffed or even overstaffed.  The Secretariat agrees with the gist of the 
recommendation but is unable to implement:  
The staff req uirements are decided by the 
Director -General, with the professional input of 
the HR Division, taking into account the 
relative needs for resources throughout the 
organization . Furthermore, the 
Director -General has a target structure of the 
organization that was developed taking into 
account the projected needs of the 
organization and the quest to address the 
inverted py ramid structure . No division, let 
alone a s ection, has authority or expertise to 
determine the resource needs for itself.  Closed  
29 Backup situation  4.3 / 2015  Within FMS the function of recording inventory was 
not in service from May to November  2015 due to sick 
leave of a staff member . The backup situation of FMS 
and SSS is not sufficiently organized . The existing 
backup documentatio n lacks the designation of 
backup staff and of related duties in detail for several 
functions.  
I recommend ensur ing sound and reliable backup 
plans and introducing  a written guidance on 
replacement of staff in case of longer absence.  The Secretariat accept ed the recommendation:  
 
Backup plans were strengthened . As 
recommended, HRD introdu ced a written admin 
memorandum N o. 977 on sick leave guidance 
on 31 January  2017. 
 Done 
30 Pending repairs and 
projects related to 
construction works  4.3 / 2015  The renovation and  extension works were completed 
in 2012 -2013, but necessary repairs of defects are 
still pending.  
I recommend improving efforts to address  
construction works related defects or damages and 
initiating a written procedure on the termination of 
the defects liability periods.  WTO S ecretariat followed the recommendation 
and improved its effort in addressing 
construction shortcomings.  
Through a stronger contract management 
deficiency liabilities will be addressed promptly 
and solved before the end of the defect liability 
period.  
The signage project has been now completed . Done   
  WT/BFA/W/454  
- 42 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
31 Links and 
interactions between  
FMS and SSS  4.3 / 2015  My team observed cooperation  and coordination 
between FMS and SSS . Within its large scope of 
responsibilities SSS also detects  malfunctions of the 
building and its equipment by its 24/7 security patrols 
and safety inspections . In order to ensure proper 
maintenance of the building SSS reports malfunctions 
to FMS via help re quests, including proposals for 
measures which might improve the security 
infrastructure . We noticed inconsistencies as to 
cooperation between  SSS and FMS . The interaction 
between FMS and SSS could be improved.  
I recommend th at WTO Secretariat evaluat e the 
current structures, links and interactions between 
FMS and SSS in order to provide measures to 
streamline cooperation between  FMS and SSS.  As recommended, i n order to reduce 
dependencies and overlaps between SSS and 
FM, a budget of about CHF 250,000 has been 
transferred  to SSS on a trial period of 
12 months . This budget transfer will make SSS 
independent for all fire safety equipment . At 
year-end a review will be carried out to see 
how this transfer has worked.  
 Done   
  WT/BFA/W/454  
- 43 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
32 Cash and cash 
equivalents  3.1.1 / 2016 Pursu ant to the financial regulations of the WTO, all 
payments shall be made by authorized officials of the 
Administration and General Services  Division . There is 
no specific regulation regarding the four eyes principle 
for the signature authorities.  
For all funding and payments WTO is using three 
house banks : UBS, Credit Suisse and Post Finance . All 
these banks sen t us a confirmation of their business 
relationship with the WTO maintained as per booking 
date 31 December  2016. Enclosed to these 
confirma tions they listed the persons who are 
authorized  for bank transfers with their signatures . 
Except the DG all designated officials are authorized 
only to jointly sign transactions (2 by 2 
authorizations) . However , the DG can make bank 
transfers individual ly, without a second signatory 
(unique signatory).  
I recommend that WTO replace the applicable unique 
signatory by the DG to a joint signature 2 by 2 
authorizations . Furthermore , I recommend that WTO 
revise the financial regulations regarding the current 
regulations for bank transactions and payments with 
respect to the four eyes principles in all relevant 
cases.  Financial Regulations 38(c) and (d) make it 
imperative to have the four eye principle for 
payments . The relevant extract from the 
regulations read  as follows:  
"The Director -General shall : 
(c) cause all payments to be made on the basis 
of appropriate supporting documents and other 
documents which ensure that the services or 
goods have been received and that payments 
have not previously been made;  
(d) designate the officers who may receive 
monies, incur obligations and make payments 
on behalf of the WTO . All payments shall 
require a minimum of two signatories ; 
The text that is underlined and in bold implies 
the four eyes principle.  
In view of the above , there is no need to 
review the financial regulations.  
The policy regarding payments, which 
authorizes the Director -General to be the sole 
signatory in some instances was revised in 
September  2017 to include the four eyes 
principle and was submitted for s ignature to 
the DG . The policy reflects also the recent 
changes in the structure of AGSD staff.  Closed  
33 Provision for 
invalidity case  3.1.1 / 2016  Concerning a provision for an invalidity case in 2015 
WTO established a provision within the FS 2016 for 
one case of invalidity and allocated CHF 750 ,000 to it . 
This might be not sufficient to cover all related costs.  
In view of the prospective monthly payments from 
2017 onwards I recommend reviewing whether more 
funds have to be allocated to this provision.  The Secretariat agrees with this 
recommendation and will look into the 
approach for determining provisions for legal 
cases to assess whether this amount is 
appropriate or needs to be revised upwards.  
Provision for 2017 is set at CHF 1.3 million and 
for 201 8 CHF 1.5 million.  Done   
  WT/BFA/W/454  
- 44 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
34 Overtime  3.1.1 / 2016  The financial statements of the WTO include  as 
"Employee benefits liabilities " as at 
31 December  2016 a position "Untaken annual leave " 
with an amount of CHF 8,725 ,000. This position 
includes the accrued untaken annual leave by 
permanent and temporary staff with an amount of 
CHF 8,608 ,000 as well as the accrued overtime by 
permanent and temporary staff with an amount of 
CHF 117 ,000 (1,438 hours) . For more transparent 
and meaningful financial statements WTO shall 
calculate and identify all employee benefit liabilities in 
detail  regarding their different entitlement and/or 
justification.  
I recommend that WTO state the positions "Untaken 
annual leave " and "Overtime " separately and explain 
the number of considered days/hours and the 
calculation of the liabilities comparing the relevant 
data of the previous financial year in the notes  
attached . The WTO will prepare the 2017 Employee 
benefits liabilities t ables to separately present 
the provision for the remaining untaken annual 
leave dues and that for the remaining hours 
attributable to Compensatory Time Off (CTO).  Done 
35 Information 
confidentiality/ 
Personnel aspects  4.1 / 2016  I suggest opening a discussion in the Secretariat 
whether it would be helpful to setup the crosscutting 
function of a "general " security officer . This function 
could coordinate the Secretariat 's efforts in the 
context  of information confidentiality, especially as to 
classified physical material . This central contact 
person could particularly e.g. : 
 help to  harmonize rules and procedures;  
 serve  as an advisor to the divisions;  
 safeguard that established rules and instruct ions 
are implemented and adopted properly;  
 carry out examinations following  suspected 
cases.  The overarching issue, from the Secretariat's 
perspective, is that there needs to be an 
effective link between the Information Security 
Officer and Security Servic es. Before looking at 
a new role, formalizing how this link functions 
within the existing governance would already 
be beneficial.  
 Closed    
  WT/BFA/W/454  
- 45 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
36 Information 
confidentiality/ 
Personnel aspects  4.1 / 2016  I suggest broadening the approach of backgroun d 
checks in future also to permanent and temporary 
staff. The hiring of staff on Fixed Term appointment 
is already preceded by reference checks . To do 
it for temporary staff might imply delays 
and/or additional costs . The possibility of 
outsourcing referen ce checks will be explored 
as a way to cope with the additional volume of 
conducting reference checks for temporary 
staff. 
For temporary staff hired for very short 
periods, such reference checks might not be 
productive . Similarly, in cases of unanticipated  
and urgent replacement, such reference checks 
for temporary staff might not be viable.  Closed  
37 Information 
confidentiality/ 
Organizational 
aspects  4.1 / 2016  I encourage the WTO to complete the mentioned 
inventory as soon as possible . I suggest 
strengthening  the capacity of the responsible unit, 
e.g. by temporary support, to achieve this and other 
aims in a more timely manner . The results should be 
taken as a basis to establish a transparent landscape 
of the needs  of the Secretariat conc erning information 
confidentiality.  This recommendation can be incorporated in 
the implementation of t he Information 
Confidentiality R ecommendation No. 26 
(4.2/2015) . The related policy is currently on 
hold at the JAC (Joint Advisory Committee) for 
final a pproval.  Ongoing  
38 Information 
confidentiality/ 
Organizational 
aspects  4.1 / 2016  I encourage the responsible of the Secretariat to 
discuss in which way the rules and procedures in the 
area of dispute settlement could be harmonized and 
possibly simplified.  
I recommend providing such procedures, considering 
the results of the "Inventory of Key Information 
Assets " and taking into account the already existing 
procedures in the area of dispute settlement . In this 
respect I repeat my not yet implement ed 
recommendation of the previous report to set up 
extended guidelines (see para. 92/93) . I also 
recommend accompanying the implementation of 
procedures with suitable training to increase the 
awareness of staff concerning information 
confidentiality throug hout WTO.  The Secretariat is of the view that at this stage 
it would be more important for it to 
concentrate its efforts on enhancing the 
Secretariat -wide procedures and processes 
pertaining to confidentiality of information and 
establishing overarching gu idelines that can be 
employed by various divisions, as they prepare 
specific internal procedures . It is more 
important for the Secretariat to build its 
policies, standards practices and training rather 
than fo cus on standardising only 
three  divisions.  
This overarching approach is taken in serious 
consideration by the Joint Advisory Committee . Closed    
  WT/BFA/W/454  
- 46 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
39 Information 
confidentiality/ 
Aspects of physical 
security  
 4.1 / 2016  Executing the planned  reassessment I recommend 
initially : 
 defining a clear process with designation of the 
involved functions respective ly individual 
WTO staff members;  
 setting up co mparable criteria of protection;  
 taking relevant standards into account 
(e.g. EN 1047 regarding fire resistance, 
EN 1627/1630 regardi ng anti -burglar security, 
etc.);  
 document ing all relevant steps of the particular 
measures.  
The process of implementation of security measures 
should also consider existing and future  policies 
regarding security, business continuity and disaster 
recovery.  The Secretariat agrees to take explore 
implementing feasible aspects of this 
recommendation.  
In 2018 the Secretariat is going to implement a 
Security Renovation Project that will cover the 
items recommended.  
 Ongoing    
  WT/BFA/W/454  
- 47 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
40 Ministerial 
Conference / 
Decision on date 
and venue of 
sessions  
 4.2 / 2016  I recommend that the Secretariat continue its efforts 
on establishing a guideline on organizing Ministerial 
Conferences.  
I further recommend that the Secretariat incorporate 
and follow up risks related to the organiza tion of 
sessions of the Ministerial Conference in its risk 
register on a project based approach.  Many documents exist regarding the 
preparation for and management of Ministerial 
Conferences e.g. the Roles and Responsibilities 
document ; the Requirements Lis t; a Lessons 
Learned document from MC10 ; project plans ; 
floor plans of meeting and conference rooms 
and other spaces to be used during the 
Conference ; an Agreement with the Host 
Country detailing the obligations and 
deliverables by each party ; and several 
information notes sent to Members and other 
prospective Participants etc.  
In view of the above, it is important not to 
have an inundation of preparatory materials 
that could lead to hours spent on planning and 
crowding -out focus on implementation and 
other  core aspects of the Ministerial 
Conferences.  
The Secretariat has developed a risk register 
(document shared), using a consultative 
process across Divisions and come up with 
mitigating actions . From the Secretariat's 
perspective, this plus all the above -mentioned 
documents would be enough. (Check MC11 
Risk Register).  Done   
  WT/BFA/W/454  
- 48 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
41 Ministerial 
Conference/ 
Guidelines on 
organizing sessions  
 4.2 / 2016  I acknowledge the efforts the Secretariat has made to 
improve project management of organizing sessions 
of the Ministerial Conference . In this regard I consider 
the Handbook for prospective hosts and the lessons 
learned report as important inputs to consoli date 
internal knowledge and to streamline project 
management and project organization.  
I recommend that the Secretariat continue its efforts 
on issuing a guideline on organizing Ministerial 
Conferences . I recommend that the Secretariat 
incorporate and foll ow up risks related to the 
organization of sessions of the Ministerial Conference 
in its risk register on a project based approach.  The Secretariat sees this recommendation as 
being exactly the same as Recommendation 
No. 40 above . It, therefore, requests 
clarification of the distinction so that an 
appropriate comment can be stated.  Closed  
42 Ministerial 
Conference/ Project 
planning  
 4.2 / 2016  I recommend that the Secretariat assess the workload 
related to the organization of Ministerial Conference 
sessions and its impact to the common workload of 
the involved staff members.  
I recommend that the Secretariat additionally 
consider calculating more realistic time frames for 
other projects of involved staff members.  Ministerial Conferences and the implic ation of 
various individuals in this are a major 
consideratio n when performance objectives are 
set with people who are closely involved in 
preparing for and servicing Ministerial 
Conferences, during a year in which the 
Ministerial Conference is to be held.  
Therefore, some projects were rationalized and 
deferred to the following year so as to not 
over-encumber the people responsible for 
these areas in 2017 . Examples include some 
projects that are to be delivered by ITSD and 
Conference Services as well as Sec urity 
Services . The objectives set for the relevant 
individuals took account of the workload from 
the Ministerial Conference activities.  Done   
  WT/BFA/W/454  
- 49 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
43 Termination 
indemnities/Mutually 
agree d termination 
due to behavioural 
reasons  
 4.3 / 2016  I recommend consideri ng whether cases like the 
above  could be handled more restrictively in terms of 
indemnity payments . This includes the application of 
all disciplinary measures in preparation of a notice, in 
particular written warnings . Where it is known  that 
WTO is likely to pay indemnities to avoid court 
procedures this could create incentives for 
inappropriate working attitude . I suggest that OIO 
analy ses the termination indemnity policy, in 
particular regarding the above cases.  The WTO has now a clear ly defined procedure 
for administrative investigations and 
disciplinary actions and has established a Joint 
Disciplinary Body, responsible for determining 
whether the disciplinary measures proposed by 
the Director -General are proportionate to the 
observed breaches . When adopting disciplinary 
sanctions, the Director -General takes into 
consideration the interest of the Organization.  Closed  
44 Termination 
indemnities /Cases 
of exceptional 
circumstances with 
additional payment 
in lieu of notice  4.3 / 2016  I recommend that separations becoming necessary be 
planned  and initiated earlier in order to avoid such 
payments.  The Organization will aim to initiate any 
separations before the end of the third quarter, 
with a view to the separation taking effect at 
the end of the year.  Closed  
45 Action  plan for 
growing  outstanding 
contributions.  3.2 / 2017  Outstanding contributions totalled CHF 33.8 million . I 
recommend preparing an action plan for running the 
WTO with growing outstanding contributions.  The Secretariat agrees with the observation.  
Instead of an action plan, the Secretariat will 
be proposing appropriate steps to be taken in a 
dedicated paper to be presented to the CBFA in 
June 2018.  Ongoing  
46 Provisions of 
invalidity cases  3.3.1 / 2017  Provisions of invalidity totalled CHF 4.53  million  in 
2017. If the monthly payments to both persons are 
accrued over the average Swiss (remaining) life 
expectancy, these provisions would have to be raised 
to about CHF 9.4  million  in total, each provision would 
have to b e more than doubled.  
I repeat and extend my recommendation in my report 
last year to check and adapt all relevant WTO 
invalidity cases.  This recommendation  is linked to 
recommendation 48. 
The Secretariat agrees with the observation 
and will investigate the  feasibility of this 
suggestion relative to other options.  
 
 Ongoing  
47 HR focal point/ 
contact person  3.3.1 / 2017  HR delivered documents delayed to the Auditor.  
I recommend that HR provide a focal point/person to 
channel and deal with audit requests regarding HR 
topics to avoid any future delay of providing 
information to the Auditor.  The Secretariat agrees with the observation 
and will provide a HR focal point for the next 
audit.  
 Ongoing    
  WT/BFA/W/454  
- 50 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
48 Insurance p olicy 3.3.1 / 2017  I suggest that WTO review whether it is economically 
advantageous to take out an insurance policy that 
covers the complete risk of invalidity instead of minor 
one-time lump sum payments only.  The Secretariat agrees with the observation 
and will investigate the feasibility of this 
suggestion relative to other options . Ongoing  
49 Delegation of 
authority  4.1 / 2017  I recommend updating regularly the document "WTO 
Delegation of Authority" . It should be noted that there 
is a delegation of authority to the Director of th e 
AGSD  for the adoption of the travel p olicy. The Secretariat agrees with the observation . 
There is an amended travel policy that is going 
through internally review process which will be 
signed as per the current delegation of 
authority . Ongoing  
50 Reimbursemen ts 
programs of airlines  4.1 / 2017  WTO has not entered into any contracts with airlines 
to participate in such reimbursement programs.  
I recommend checking participating in reimbursement 
programs of airlines.  The Secretariat will evaluate the feasibility of 
the recommendation.  
 Ongoing  
51 Expanding 
application 
MobileXpense  4.1 / 2017  If the introductory phase has been successfully 
completed, I recommend that the WTO check 
expanding the application of MobileXpense to other 
categories of trave llers. The Secretariat agrees on the observation and 
will aim to implement it by the second quarter 
of 2019 . Ongoing  
52 Calculating 
advances  4.1 / 2017  MobileXpense  often exceeded the reimbursable travel 
expenses . The travel service team then informed the 
employee in each individual case to process the 
repayment of the overpayment . This created 
additional work that can be avoided by complying 
with the travel policy.  
I recommend calculating advances in line with 
regulations.  The Secretariat agrees on the observation and 
will implement it by the second quarter of 
2019.  Ongoing  
53 Application for 
authorization  4.1 / 2017  Applications for authorization shall be submitted at 
least ten working days before the start of official 
travel.  
I recommend that travel lers be requested to make 
travel claims as early as possible ; if submitted shortly 
before the start, this should be justified accordingly in 
the travel request.  The Secretariat will reinforce the message of 
submit in duly time the travel request through 
a notifica tion in the AGSD weekly news and in 
ad hoc messages if needed.  
 Ongoing    
  WT/BFA/W/454  
- 51 - No. Issue  Reference : 
Chapter, Year  Recommendation  WTO's  Comment/Implementation  Status  
54 Open travel expense 
reports  4.1 / 2017  Travel expense reports in MobileXpense are 
considered "open".  
I recommend making  a settlement as soon as 
possible, which means when cases are technically 
completed.  The Secretariat agrees on the observation and 
will implement it by the second quarter of 
2019.  Ongoing  
55 Recruitment process 
for consultants  4.2 / 2017  There are two  different processes in the 
two responsible divisions for consultants.  
I recommend standardizing recruitment processes for 
individual consultants according to the Procurement 
Guidelines.  The Secretariat agrees on the observation and 
has already  started the  revision process to 
issue a dedicated consultant guideline.  Ongoing  
 
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