RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/121 
8 December 2010 
 (10-6649) 
Committee on Budget, Finance and Administration  
  
 
REPORT OF THE MEETING HELD ON 6 DECEMBER 2010 
 
 1. The WTO Committee on Budget, Finance and Ad ministration met on 6 December 2010 under 
the chairmanship of Mr. Pasi-Heikki Vaaranmaa (F inland).  The terms of reference and composition 
of the Committee are set out in document WT/L/ 44/Rev.1.  The agenda contained in document 
WTO/AIR/3674 was adopted. 
I. EXTERNAL AUDIT REPORT ON THE FINANCIAL STATEMENTS FOR THE 
YEAR ENDED 31 DECEMBER 2009 AND PERFORMANCE AUDITS (WT/BFA/W/216) 
2. The representative of the French Court of Audit thanked the Director-General and his staff for 
their work and informed the Co mmittee that the accounts for 2009 had been fully certified by the 
external auditor.  He also pointed out that sev eral recommendations of the 2009 audit had already 
been implemented, such as the adoption of a plan for the implementation of IPSAS, the strengthening 
of the team for the building project and the inte gration of extra-budgetary funds in the financial 
statements.  A provision for staff benefits had also  been established for the first time in 2009 in line 
with the gradual implementation of IPSAS until 20 12.  The area of losses on foreign exchange had 
also been subject to a speciali zed follow-up audit in 2010, which had permitted the identification of 
the reason for the losses. 
3. The Performance Audit 2009 had focused mainly on the area of Publications and the Doha 
Development Global Trust Fund (DDAGTF), which provided training and technical assistance 
financed by voluntary contributions. With respect to  Publications, the auditors recommended further 
streamlining of the distribution channels, the pu rchasing policy and the accounting procedures as well 
as the adoption of a common purchasing policy with the WTO library in order to achieve better purchasing conditions.  
4. The audit of the DDAGTF resulted in several recommendations.  These included the 
increasing use of videoconferences and the reduction in  the number of reference centres in selected 
countries, tests for the selection of candidates, the establishment of performance indicators in order to 
measure the quality of the training events and a cancellation policy for hotel booking and airline 
tickets.  It was further recommended to find simple r rules for the determination of which expenses 
were financed by the DDAGTF and which expenses by the regular budget, such as charging all staff-
related costs to the regular budget and all variable costs to the DDAGTF.  It was also suggested to 
increase the overhead fees the WTO charged to the DDA GTF, in order to cover the real cost of the 
Secretariat.  
5. One Member enquired about the high amount reimbursed by the Organization to its staff 
subject to US taxes as well as about the effectiv eness of regional trade policy courses versus Geneva-
based courses. Another Member asked which was the most urgent recommendation of the auditors in 
the area of technical assistance. WT/BFA/121 
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  6. A member of the Secretariat replied that the pr ocedure for the reimbursement to the staff of 
US taxes was based on an ILO Administrative Tribuna l decision and that the Secretariat had tried to 
find a solution together with other organizations concerned.  With respect to trade policy courses, it 
was explained that there were three levels of cour ses:  (i) the e-learning courses;  (ii) the regional 
training courses, which were more regionally orie ntated;  and (iii) the Geneva-based courses, 
considered as the master level.  It was further added that an increased use of video conferences was 
part of the reduced carbon footprint programme of  the Director-General, but implementation was 
hampered by the problem of time difference and by th e fact that most beneficiaries did not have the 
infrastructure. 
7. The representative of the French Court of Audi t indicated that one of the most important 
recommendations in the area of technical assistan ce was for the Technical Co-operation Audit to 
closely monitor the implementation of the reform e ngaged by ITTC in the area of technical assistance. 
II. ADMINISTRATIVE MEASURES FOR INACTIVE MEMBERS 
8. A Member of the Secretariat provided a short update on Members under Administrative 
Measures  and reported that, since the last meeting on 26 November, two more Members, Grenada 
(former Category III) and Nicaragua (former Catego ry IV) had made a payment and had therefore 
been taken off the list of Members under Admini strative Measures.  The number of Members under 
Administrative Measures was thus reduced to 11, which was the lowest number ever achieved.  
III. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 
30 NOVEMBER 2010 
A. WTO
 BUDGET AND FINANCE REPORT (CRP(10)15) 
9. A member of the Secretariat presented the situation regarding Members' contributions as at 
30 November 2010 showing that CHF 161 million of the assessed CHF 188 million had been received 
and that 99 Members or 65 per cent of the Memb ership had no outstanding balance.  Payments 
received from Observers represented 72 per cent of  the total assessment of CHF 0.9 million. 
10. The cash situation could be considered as ad equate as the WTO held CHF 57 million on its 
bank accounts, including the Working Capital Fund  and Extra-Budgetary Funds.  The budgetary 
performance as at 30 November 2010 remained on sche dule with an implementation rate of 90.3 per 
cent.  A budgetary surplus of some CHF 2 milli on was still expected at the end of December. 
B. EXTRA -BUDGETARY FUNDS REPORT (CRP(10)16) 
11. A member of the Secretariat presented a new format for reporting on the Doha Development 
Agenda Global Trust Fund (DDAGTF).  The Secretar iat would welcome feedback from the Members.  
12. As at 30 November 2010, total funds available in the DDAGTF stood at CHF 5.2 million, 
with expenditure amounting to CHF 20.9 million.  It  was added that the current year's expenditure 
exceeded the incoming contributions by CHF 5.7 milli on, and that the level of planned activities could 
only be carried out due to an excess of CHF 10.9 million carried forward from the previous year. 
13. It was further pointed out that the projected level of contributions for 2010 was 
CHF 4.5 million less than in 2009 and that genera lly the total number of donors as well as the amount 
of contributions by donor was decreasing.  Members were, therefore, urged to contribute to the 2011 
plan, as additional activities would be entirely dependent upon new and renewed contributions.  WT/BFA/121 
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  C. BUILDING PROJECT REPORT  
14. A member of the Secretariat reported that the renovation of the South Wing had been nearly 
completed and that 313 staff would be moved in January 2011, which represented the biggest move 
ever in the Centre William Rappard.  All services  provided to Members would be maintained during 
that period. 
15. Works on the South Courtyard Conference Centre  were progressing, and the building permit 
for the new building was expected to be issued by  the end of the year.  The Swiss National Council 
was expected to approve the CHF 40 million loan fo r the new building that day, which would allow 
the works on the new building to begin early in 2011.  With respect to the Security Perimeter, funds should also be available in 2011, which would result in four construction projects on the WTO site 
next year.   
16. It was also explained that the infrastructure contract, which established the ownership regime 
for the WTO as well as the indemnities payable, sh ould the WTO leave the building, was being re-
negotiated with the Swiss Authorities. 
17. As of January 2011, there would be no more pa rking space available for delegates at the CWR 
owing to the commencement of work on the new build ing. Delegates would, therefore, be required to 
park at the Secheron car park.    
18. Regarding the first common facilities project, i.e. the equipping of the South Conference 
Centre, Members were informed that the bids recei ved were in the expected range of CHF 3.5 to 
CHF 4.5 million and that the contract with the winni ng bidder would be finalized before the end of the 
year.  Members would be provided with more info rmation about this contract at the beginning of 
2011. 
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