RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/226 
1 March 2011 
 (11-1018) 
Committee on Budget, Finance and Administration  
  
 
  
REPORT OF THE OFFICE OF INTERNAL AUDIT (OIA) 
 
AUGUST 2009 - DECEMBER 2010 
 WT/BFA/W/226 
Page 2  
 
  Summary  
 
This is the second report to the Committee on B udget and Finance covering the Internal Audit 
activities of the World Trade Organization and it covers a seventeen month period from August 2009 to December 2010. The first report covered the pe riod since OIA's inception in March 2008 to July 
2009. Henceforth, reports will be covering a twelve month period. 
 
The report addresses the background, audit activities carried out during the period, audit resources, 
personnel development, challenges a nd opportunities and the way forward. 
 
During the period, OIA: 
- Drew up a risk based annual audit plan for 2010; 
- Issued two audit reports, on payroll ac tivities; and ITTC Administrative and 
Logistical support activities; 
- Drafted a delegation of authority  matrix; 
- Undertook five follow- up audits, two on procurement, two on mission travel 
and one on payroll activities in order to verify the implementation status of 
various audit recommendations. 
 
Below is a snapshot of progress in the implem entation rate of audit recommendations for 
different audit activities and their ultimate status as at 31 December 2010; 
 
Procurement Audi t of 17.11.08 
  
Implementation 
status   Audit Follow- up Date 
Closed1 W.I.P2 Open3 
31.07.2009 27% 51% 22% 
30.04.2010 57% 29% 14% 
31.12.2010 80% 9% 11% 
 
Mission Travel Audit of 13.10.09 
30.06.2010 17% 39% 44% 
31.12.2010 31% 52% 17% 
 
Payroll Audit of 28.06.10 
31.12.2010 6% 61% 33% 
ITTC Audit of 02.12.10 
Follow up is scheduled for 2011 
Delegation of Authority  – On- going 
 
A summary of audit activities not only for the period being reported upon but also for the previous 
period and those planned for 2011 for comp arison purposes is shown in Annex I. 
_______________ 
 
                                                      
1 Refers to recommendations that have been implemented. 
2 Refers to progress being made  in taking remedial action(Work in Progress). 
3 Refers to recommendations with no remedial action taken as yet but with proposed remedial action 
plans to address the recommendations.  WT/BFA/W/226 
 Page 3 
 
 
  TABLE OF CONTENTS 
 
Page  
 
I.  BACKGROUND ..................................................................................................................... ..5 
II.  AUDIT ACTIVITIES 2010 ......................................................................................................5  
A.  AUDIT PLAN 2010 ........................................................................................................................5  
B.  AUDIT RATING SYSTEM ...............................................................................................................6  
C.  PAYROLL AUDIT ..........................................................................................................................6  
D.  DELEGATION OF AUTHORITY MATRIX .........................................................................................7  
E.  AUDIT OF ITTC ADMINISTRATIVE AND LOGISTICAL SUPPORT ACTIVITIES ...................................8  
F.  FOLLOW -UP AUDITS AND IMPLEMENTATION STATUS .................................................................9  
G.  WTO  INTERNAL AUDIT – POLICY AND PROCEDURE MANUAL ................................................11  
H.  FRAUD POLICY ...........................................................................................................................11  
III. OTHER ACTIVITIES............................................................................................................11  
IV.  INTERNAL AUDIT RESOURCES ......................................................................................11  
V.  PERSONNEL DEVELOPMENT AND NETWORKING ..................................................12  
VI.  CHALLENGES AND OPPORTUNITIES ...........................................................................12  
VII. LOOKING FORWARD.........................................................................................................12  
VIII. CONCLUSION ..................................................................................................................... ..13 
ANNEX I:  SUMMARY OF AUDIT ACTIVITIES .........................................................................14  
ANNEX II:  PAYROLL AUDIT RECOMMENDATIONS.............................................................15  
ANNEX III:  PROCUREMENT AU DIT RECOMMENDATIONS ...............................................20  
ANNEX IV:  MISSION TRAVEL AUDIT RECOMMENDATIONS ............................................29  
 
 
 
 WT/BFA/W/226 
Page 4  
 
  ACRONYMS 
 
 
AASS   Administrative Applications And Systems Section 
AGSD  Administration and General Services Division 
CHF  Swiss Francs CWL    Carlson Wagonlit (the travel agent used by WTO) 
CWR  Centre William Rappard 
DDG  Deputy Director(s) General DG  Director General  DGO   Office of the Director General DSA  Daily Subsistence Allowance 
GBCU  The Geneva Based Course Unit 
HR  Human Resources HRD  Human Resources Department  HRMS  Human Resources Management System (Oracle) IIA  Institute of Internal Auditors 
INFD   Informatics Division  
IPSAS  International Public Sector Accounting Standards 
IT  Information Technology 
ITTC  The Institute for Training and Technical Cooperation 
OIA  The Office of Internal Audit PO  Purchase Order RTPCU  The Regional Trade policy Course Unit RTPC  Regional Trade Policy Course(s) 
SRTPC  Short Regional Trade Policy Course(s) 
SSA   Special service Agreement(s) 
SSC   Special Service Contract(s) 
TA  Technical Assistance 
W.I.P   Work in Progress WTO  World Trade Organization  WT/BFA/W/226 
 Page 5 
 
 
  I. BACKGROUND 
1. OIA now in its third year of operation came into  existence during the first quarter (March) of 
2008 following the decision of the General Council4 that proposed its establishment. 
2. OIA follows the IIA Code of Ethics and the IIA  International Standards for the Professional 
Practice of Internal Auditing. 
3. The Internal Audit Charter requires OIA to pr esent an annual summary report to the Director-
General, with a copy to the External Auditor of activities undertaken, the scope of such activities, the 
schedule of work undertaken and the progress of th e implementation of audit recommendations.  The 
report is also presented to the Committee on Budget, Finance and Administration. 
4. Using a systematic and disciplined approach , OIA helps the Organization to achieve its 
objectives by performing an independent and objective evaluation of its financial, budgetary control 
systems and processes and providing recommendations for strengthening accountability, financial risk 
management, internal controls and governance proce sses, with the aim of ensuring that the financial 
resources made available to the Organization by its  members are used efficiently and effectively to 
obtain the best value for money. 
5. OIA is authorised to have full, free and prom pt access to all records, property, personnel, 
operations and functions within the Organization, wh ich in its opinion, are relevant to the subject 
matter under review. No limitations were placed on the scope of work of the office in the course of 
conducting its work during the period being reported upon. 
II. AUDIT ACTIVITIES 2010 
A. AUDIT PLAN 2010 
6. The WTO internal audit plan for 2010 was compiled during the fourth quarter of 2009 using a 
risk based methodology in order to focus audit re sources on the most important areas.  This was 
achieved through interviews and discussions with sen ior management, inquiries and review of various 
literatures.  This approach facilitated the identifi cation of potential key risk areas which were then 
prioritised to come up with the Audit plan for 2010.  
7. OIA views risk as the possibility of an event o ccurring that could have a negative impact on 
the achievement of an objective or a series of objectives.  Risk assessment was therefore based on the potential likelihood of an event occurring and its imp act on the achievement of an objective or a series 
of objectives.  Materiality in terms of expenditu re incurred on an activity was also taken into 
consideration.  Those events with a higher lik elihood of occurrence and a higher impact on the 
organization and activities constituting a big percentage of the WTO expenditure were included in the 
audit plan for 2010. 
8. The plan was approved by the DG and issued to senior management in March 2010. It was 
presented to the Committee on Budget, Finance a nd Administration in May 2010 and it constituted 
the following activities; 
(a) Payroll activities; 
(b) IITC Logistics; 
                                                     
 
4 WT/GC/101, dated 7 December 2005. WT/BFA/W/226 
Page 6  
 
  (c) Delegation of Authority Matrix; 
(d) Outsourced Services (Security and Cleaning); 
(e) Follow –up audits. 
B. 
AUDIT RATING SYSTEM  
9. During 2010 a rating system was adopted for pu rposes of prioritising the audit observations 
and to abet the implementation of recommendations according to their significance. The rating system 
was used for the audits carried out in 2010 and will be reviewed on a continuous basis for relevance. 
It consists of Significant, Moderate, Low an d Satisfactory ratings and it has the following 
descriptions: 
Significant -These observations indicate critical consequen ces due to their magnitude, nature, effect, 
relevance and impact. The nature of the observati ons, underlying anomalies and risk exposure could 
have a significant and negative impact upon, not only the achievement of system, function or process 
objectives but also the achievement of the Organi zation's objectives.  Significant observations may 
include conditions dealing with fraud, material irregularities and errors, inefficiency, waste, 
ineffectiveness, conflicts of interest, non-complianc e with laws, regulations, policies, procedures and 
contracts and significant control weaknesses.  
 The observations falling under this category require immediate attention to correct the anomalies. 
Moderate – Anomalies manifested by these observations pose consequences which, if not mitigated, 
could have a multiplying effect and affect the achievement of objectives.   
Whilst individually these anomalies may not have seri ous consequences, when taken collectively, risk 
exposure could possibly increase as they can easily b ecome high risks.  They therefore need to be 
addressed to further strengthen internal controls and mitigate the risks. 
Low  – The observations under this category have no observed consequences at the time of audit, but 
addressing the weaknesses would strengthen the controls and result in more efficiency and 
effectiveness in operations. 
Satisfactory  - These observations indicate no weaknesses noted in controls at the time of audit and 
within the scope of the audit.  
C. 
PAYROLL AUDIT  
10. In 2008 and 2007 staff costs accounted for appr oximately 70 per cent of WTO's expenditure 
of which approximately 90per cent was paid throug h the payroll.  Staff costs for 2008 were CHF 
140,530,935 and CHF 137,104,424 for 2007.  Staff costs for 2009 could not be sufficiently 
established because the accounts were being finalised and audited by the External Auditor.  The audit 
exercise therefore covered the periods 2007, 2008 and 2009 according to availability of data at the 
time of audit. 
11. The audit scope covered staff costs paid fro m the regular budget and from extra- budgetary 
funds for permanent staff (fixed term including L po sts and regular contracts), temporary staff, and 
internships.  The audit scope also covered the cont racting process for consultants and also reviewed 
payments made to Panellists and Appellate Body Members.  WT/BFA/W/226 
 Page 7 
 
 
  12. The general objectives of the audit were to acknowledge any satisfactory practices; assess 
whether proper payroll controls , policies and procedures were in place during the execution of the 
payroll function notably controls  over segregation of duties and access rights; assess the adequacy of 
IT security controls; verify compliance with releva nt staff rules, regulations and SSA guidelines for 
the engagement of consultants a nd panellists; trace a representative sample of payroll and payroll 
related data (not paid through the payroll) to s ource documents for validity, reliability and accuracy; 
reconcile the staff head count with the Payroll count ; reconcile a representative sample of payroll data 
with bank payment details; test payroll computations for accuracy; review the trend in payroll expenditure categories to determine areas of audit fo cus; detect any other unfavourable conditions and 
make appropriate recommendations to pr event or mitigate their occurrence. 
13. The audit observed that the payroll and payr oll related tabulations  were reasonably well 
computed within the audit scope and payments were  made on a timely basis.  Any anomalies were 
corrected.  However there were significant areas where controls could be improved most notably the adequacy of system and access controls which c ould breach the requirement for confidentiality of 
personnel information; adequacy of ownership, management and accountability of the staff head 
count and payroll operations; and compliance with st aff rules and regulations.  The audit also noted 
opportunities for improving the adequacy of SSA gui delines for recruiting and employing consultants 
in order to enhance compliance with the guidelines and their effectiveness.  Other areas warranting 
attention included segregation of duties; contr act management and control by HRD over the 
recruitment process for the various categories of  staff to avoid any abuse of the process. 
14. The final report with thirty three recommendations, twenty nine of which were significant 
was sent to the DG on 28 June 2010.  There is good progress and implementation plans in place to 
address the audit recommendations.  Below is a graphical representation of the progress made in implementing the recommendations as at 31 December 2010.  An overview of the recommendations and their implementation status as at 31 December 2010 is depicted in Annex II. 
 
Closed
6%
W.I.P
61%Open
33%Payroll Audit - progress in implementation as at  
31.12.2010
 
D. DELEGATION OF AUTHORITY MATRIX  
15. Delegation of authority ensures a basis of accountability and control and outlines individual 
roles.  The exercise was a continuation of a desk  review that commenced in 2009 and spearheaded by 
OIA upon the request of the DG.  The ultimate obj ective was to analyse and document the existing WT/BFA/W/226 
Page 8  
 
  authority and approval levels within WTO and to  come up with a comprehensive document to be 
published for information and guidance of WTO st aff in fulfilling their obligations.  Those with 
delegated authority will be expected to exercise adequate control in carrying out the delegated 
functions and they will be answer able and accountable for their ac tions.  All delegated authority 
however will be subject to compliance with app licable provisions of the relevant rules and 
regulations. 
16. During 2010 more detailed information was requested from various Divisions which was 
verified and incorporated into a comprehensive de legation of authority matrix by OIA and sent to the 
DG for review.  A comprehensive document was scheduled to be distributed to WTO staff mid-2010. 
17. However, due to a number of on-going initiativ es within the Organization some of which 
commenced in 2010 and which were envisaged to significantly affect the authority and approval 
levels, management thought it more prudent to first incorporate any additional information emanating 
from the above initiatives by close of 2010 notably t hose pertaining to HRD.  This was accomplished 
and the matrix is undergoing further review by the DG after which it will be sent to senior 
management for their comments and any further input.  It will be made available to all staff in 2011 
and it will be updated on a continuous basis thereaf ter to incorporate the remaining initiatives, any 
identified new areas and future changes that will be made in the authority and approval levels.  
18. In compliance with the IIA audit standards a nd to avoid any conflict of interest and the 
presumption of impairment in objectivity, OIA will refrain from appraising the delegation of authority 
matrix and its contents for the time being due to  the initiation and responsibility undertaken in its 
compilation and update.  The appraisal of the delega tion of authority matrix will be left with the 
External Auditor. 
E. 
AUDIT OF ITTC ADMINISTRATIVE AND L OGISTICAL SUPPORT ACTIVITIES  
19. Bearing in mind that the primary responsibilit y for planning and coordinating TA activities in 
the Secretariat lies with ITTC Division, the audit ex ercise was specifically tasked with verifying, to 
the extent possible, whether there were similar ities in the kind and nature of administrative and 
logistical support activities executed by the different Units within ITTC for the different TA activities 
and secondly between RTPCU and regiona l partner universities.  The a udit was aimed at assessing the 
economic and optimum allocation of the Divisi on's budgetary, financial and human resources. 
20. With effect from 1 November 2008, management  made a decision to move Logistics Unit 
from AGSD to ITTC Division.  The major objectiv e was to consolidate all administrative and 
logistical support functions of a similar kind and nature under one Unit as a means of unifying and 
integrating similar operations and reaping econo mies of scale arising from such integration.  
However, this did not fully happen.  Instead, th e functions remained product aligned as opposed to 
being task aligned.  
21. The audit observed that there was evident replica tion in the kind and nature of administrative 
and logistical support functions executed by Logi stics Unit, GBCU, RTPCU, Academic Programme 
Unit and in isolated cases Secretaries under Region al Desks for the different TA products.  The 
products include the three month Geneva Base d Courses under GBCU; the preliminary workshops 
that precede Regional Trade Policy Courses and consolidation courses under RTPCU; academic 
activities falling under Academic Programme Unit; a nd SRTPCs necessitating travel by Secretaries 
under the Regional desks. 
22. Replication was observed to result in miss ed economies arising from reduced costs if 
common facilities were being used for the same natu re of tasks; and ultimately budgetary, financial 
and human resources were observed not to be economically allocated and optimally utilised.  WT/BFA/W/226 
 Page 9 
 
 
  23. Despite the various controls in place to ensure  that regional partner universities managed the 
Regional Trade policy Courses in a satisfactory ma nner, opportunities were noted for mitigating the 
duplication arising from carrying out similar administrative and logistical support activities by RTPCU and the regional partner universities in order to  eliminate waste in financial resources.  Such 
duplication reduces the objective of enhancing regional ownership and initiating a process of 
progressive transfer of the ownership of the RTPC programme to the regions.  
24. The final report with eleven observations nine  of which were significant was sent to the DG 
on 2 December 2010.  A further review of the r ecommendations by management resulted in twelve 
revised final and agreed audit recommendations for implementation.  The recommendations with 
different timelines include a restructuring of the Logi stics Unit in order to integrate the administrative 
and logistical support activities under one Unit; re- allo cation of staff within ITTC Division to meet 
the needs of the re-structuring initiatives within Logi stics Unit and the needs of any other Units within 
ITTC; re-profiling the jobs of relevant staff; review ing the need for short-term contracts within ITTC; 
and a reduction in the frequency and duration of trav el by the different Units within ITTC.  The 
implementation of the various recomme ndations will be verified in 2011. 
F. F
OLLOW -UP AUDITS AND IMPLEMENTATION STATUS  
25. The Internal Audit Charter requires OIA to establish and maintain follow-up systems to 
determine whether effective remedial action has be en taken and to periodica lly report on situations 
where adequate and timely corrective action h as not been implemented.  OIA undertook five 
follow-up audits, two on procurement, two on mission travel and one on payroll activities. 
26. Procurement Audit 
(a) Two follow-up audits were conducted in April 2010 and December 2010 respectively 
to verify the implementation status of forty - one audit recommendations that were made in November 2008.   
(b) According to the results of the follow-up audits, there is good progress in 
implementing corrective measures with a 53per cent increase in recommendations 
that have been closed from 27 per cent in July 2009 to 80 per cent as at 31 December 
2010.  The improvement is attributed to the documentation and enforcement of new 
and detailed procurement guidelines and procedures to guide and manage the 
procurement function; improve d delegation of authority and contract management; 
better accountability mechanisms and strengthe ned internal controls.  The follow-up 
audits also indicate a 42 per cent decrease in recommendations that are in the process 
of being implemented from 51 per cent to 9 per cent and an 11 per cent decrease in 
the recommendations that are still open and not yet implemented from 22 per cent to 
11 per cent.  There are however proposed implementation plans to ensure that the 
open recommendations are implemented.  Of  the 9 per cent that remain to be 
implemented, two of the recommendations are long term, pending the completion of 
the WTO renovation and construction project or completion of the IPSAS project.  
Below is a graphical representation of the progress made in implementing corrective measures at different points in time.  Also See Annex III for a detailed overview of the recommendations and their implementation status as at 31 December 2010.  
 WT/BFA/W/226 
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27. Mission Travel Audit 
(a) Two follow-up audits were carried out in  June 2010 and December 2010 respectively 
to verify the implementation status of twen ty- three audit recommendations that were 
made in October 2009. 
(b) Results of the follow-up audits undertaken indicate a 14 per cent increase in the 
implementation rate of closed recommendations from 17 per cent as at 30 June 2010 to 31 per cent as at 31 December 2010.In addition the implementation rate of 
recommendations that are in the process of being implemented increased by 13 per 
cent from 39 per cent to 52 per cent while those that are still open decreased by 
27 per cent from 44 per cent to 17 per cent.  Proposed implementation plans are however in place to ensure that the open recommendations are implemented.  Below is a graphical representation of the progress in implementation while Annex IV portrays the recommendations and their implementation status as at 31 December 
2010 in detail.  
    
 
 
 
 WT/BFA/W/226 
 Page 11 
 
 
  17%31%39%52%
44%
17%
0%10%20%30%40%50%60%
30.06.2010 31.12.2010Implementation status (%)
Audit follow-up dateMission Travel Audit - progress in implementation as at  
31.12.2010
Closed
W.I.P
Open
 
 
G. WTO  INTERNAL AUDIT – POLICY AND PROCEDURE MANUAL  
28. The internal audit charter requires OIA to pr epare, publish, disseminate and maintain an 
Internal Audit Manual which establishes the polici es and procedures to guide the Internal Audit 
activity.  In compliance with the IIA audit standa rds and bearing in mind the current size of OIA, 
management has since decided that the audit activiti es shall be directed and controlled through daily, 
close supervision and memoranda to the audit staff th at state policies and procedures to be followed.  
These will supplement the experience, competencies, skills and judgment of any Internal Auditor in 
planning, conducting and reporting on audits and in managing the overall internal audit activity.  This 
requirement shall be reviewed as the need arises depending on the size of OIA.  The internal audit 
charter is to be amended accordingly. 
H. FRAUD POLICY  
29. During the year, OIA had anticipated to wo rk on a fraud policy encompassing the whole 
Organization as a means of promoting appropriate  ethics and values within the Organisation.  
However, due to time constraints and limitation in resources, compilation of the fraud policy was not 
achieved during the year and was therefore postponed as part of the 2011 audit activities. 
III. OTHER ACTIVITIES 
30. During the reporting period OIA provided advi ce in respect of various organisational 
improvement initiatives, or of new policies notably on financial, budgetary, HR and process aspects. 
31. During audit engagements, OIA continues to follow up recommendations made by the 
External Auditor to ensure that appropriate action is taken. 
IV. INTERNAL AUDIT RESOURCES 
32. The approved OIA structure comprises the Head  OIA and a grade 6 support/clerical staff per 
proposals in Conference Room Paper, Refere nce: CRP (05) 26 dated 28 October 2005. WT/BFA/W/226 
Page 12  
 
  33. During the reported period OIA consisted of the Head and an Assistant who was mainly 
tasked with administrative responsibilities but al so assisted with a few technical functions. 
34. An intern was hired for six months from February  to July 2010 to help with the Payroll audit 
and follow-up audits on procurement and mission tr avel under the supervision of the Head of OIA.  
35. As stated in the previous audit report and pe r recommendation by the External Auditor, it is 
eminent that as the function grows and more audits are carried out, coupled with the requirement to 
undertake follow up audits, and for continuity of the office, the resources of OIA need to be re-
evaluated.  
36. Management therefore reviewed the structure of OIA at the end of the year 2010.  Effective 
February 2011 OIA will replace the Administrative Assistant position with a technical staff.  
V. PERSONNEL DEVELOPMENT AND NETWORKING 
37. During the period under review, the Head of OI A took part in two Conferences organised by 
the IIA, participated, collaborated and networked with other International Organizations including 
Representatives of Internal Audit Services (RIAS) of the United Nations Organizations, Multilateral 
Financial Institutions, and Associated Intergove rnmental Organizations for purposes of bench 
marking OIA activities, sharing best practices and for continued professional development which is a 
requirement by the IIA. 
38. The Head of OIA also took part in the Audit of Oracle Financials, Oracle Security Controls 
Training Course to get more insight into Oracle aspect s, which is the financial accounting system that 
is used by WTO. 
39. The Head of OIA who is a member of the Institu te of Certified Fraud Examiners (CFE) is also 
studying for a certification in fraud examination and hopes to be certified by end of February 2011.  
The certification will bring new insights into interv iewing skills and a better understanding of general 
legal aspects as they relate to audits and investigations. 
VI. CHALLENGES AND OPPORTUNITIES 
40. OIA has continued to study and understand the different activities to be audited in order to 
come up with relevant recommendations and to edu cate the auditees about the what, why and how of 
the audit function. 
41. Constraints in human resources already explained under ' internal Audit resources' above were 
a major factor in the non- completion of the 2010 audit plan.  It is hoped that the change in structure 
will alleviate this limitation.  Audit activities that were not covered under the 2010 plan will be 
carried forward to 2011. 
42. Availability of Information by OIA which was reported upon in the last report as a challenge 
in the performance of audit work has witnessed some progress in that  the Head of OIA is in the 
process of being trained in the use of a business intelligence tool, Qlikview for purposes of independently extracting and analysing financial data  from Oracle in a faster and more user friendly 
way. 
VII. LOOKING FORWARD 
43.  OIA will carry out the following audit activ ities as part of its audit plan for 2011;  WT/BFA/W/226 
 Page 13 
 
 
  (a) Outsourced services notably cleaning and security services brought forward from the 
2010 audit plan; 
(b) Outsourced services by Informatics Division; 
44. The main objective will be to assess compliance wi th contract terms, the adequacy of internal 
controls in place and value for money.  
45. OIA will also carry out follow-up audits to ascertain the implementation status of 
recommendations pertaining to various audits nota bly procurement; mission travel; payroll; and ITTC 
administrative and logistical support activities.  
46. OIA hopes to commence work on the fraud policy during 2011. 
VIII.  CONCLUSION 
47. OIA has exercised both independence and objec tivity in executing its function. The support 
received from senior management and good interac tion with auditees has helped the function to 
establish itself and to effectively discharge its du ties thereby contributing to the overall governance 
and accountability mechanisms of the WTO. 
 
_______________ 
 WT/BFA/W/226 
Page 14  
 
  ANNEX I 
 
SUMMARY OF AUDIT ACTIVITIES  
 
Audit Activities carried out since 2008 and planned for 2011  
 
 
 NATURE OF AUDIT ACTIVITY   2008 2009 2010   2011
Procurement Audit
Mission Travel Audit
Payroll Delegation of Authority- a global perspective
 
ITTC Administrative and Logistical Suppor t
Activities
Follow up of audit recommendations 
(Procurement, mission travel & payroll audits)
Audit planning 2010
 AUDIT ACTIVITIES 2011
Outsourced Services (Cleaning & Security) 
Brought forward  from 2010
Outsourced Services by Informatics  
Fraud policy  
Follow up of Audit Recommendations 
(Procurement,Mission Travel,Payroll & ITTC )  
Various Training  
 
 
  
   WT/BFA/W/226
 Page 15ANNEX II 
 
PAYROLL AUDIT RECOMMENDATIONS 
 
Implementation Status as at 31/12/2010  
 
Implementation status as reported by the implementing Division and 
verified by Internal Audit Internal Audit recommen dation- by Division Audit 
Rating 
Date  Status update  
Human Resources Division     
1. Nominate a super user and possible back up to take over ownership, 
management and accountability of the HRMS data and staff head count 
from Informatics. S1 31.12.10 
W.I.P2 Two people nominated in HRD nominated on an initial trial 
basis, to function as backup for each other.  HRD to finalize the 
scope of the HR super users' functions and required training with the Informatics Division. 
2. Review HRMS database access rights and limit access only to staff 
with a direct obligation to deal with the HRMS database. S 31.12.10 
W.I,P  HRD is currently reviewing access rights of HR staff members, 
in consultation with Informatics Division, so as to limit rights to 
the actual functional need.  A clear process of control and authorisation of access rights will be put in place, in co-
operation with the Budget and Finance Section and Informatics 
Division. 
3. Review the access of confidential in formation across the Secretariat.  
Where such confidential information needs to be disclosed, the relevant 
parties should sign a confidentiality st atement/oath that should be filed 
within HRD.  Limit access rights to confidential information to 
the fullest extent possible, especi ally of cases/situations that may 
present a conflict of interest. S 31.12.10 
W.I,P  HRD has introduced confidentiality statements for key 
Committees dealing with confidential information, e.g.  APB 
(July 2010).  In addition, HRD is working with Legal on a confidentiality document that also deals with conflict of 
interest, governance and ethics. 
4. Organise a training/awareness on "ethics" to address the treatment of 
sensitive and confidential information. S 31.12.10 
Open  
 Human Resources is working to introduce ethics awareness and 
training in 2011.  Benchmarking of ethics training in other 
International and public sector institutions is in progress. 
5. Review access to HRD archives and li mit entry to those staff with a 
vital necessity to have access to the personnel files. S 31.12.10 
Open  
 
 Human Resources has reviewed access to HR archives and is 
looking into the possibility of in troducing an access register for 
personal files.  Human Resour ces is drafting an access policy 
and a confidentiality statement to be signed by all HRD staff.  
Access to HRD archives will be further addressed as part of the process of moving to electroni c archiving and a clear control 
and authorisation process will be put in place. 
                                                      
1 Significant. 
2 Work in progress.  
  WT/BFA/W/226 
Page 16 Implementation status as reported by the implementing Division and 
verified by Internal Audit Internal Audit recommen dation- by Division Audit 
Rating 
Date  Status update  
6. Review the rates that are being used to pay translators with SSC/on-site 
contracts, while working from home, if  acceptable, have them officially 
documented and approved by management. S 31.12.10 
Open  
 
 Human Resources is investigating the origin of the rates paid to 
translators on SSC contracts with LDIMD management. 
7. Review the guidelines for short-term contracts to determine the 
maximum acceptable number of renewals and the criteria for assessing 
the need for renewal in order to promote the use of short-term contracts as intended. S 31.12.10 
W.I.P
 
 Human Resources is playing a stre ngthened role in short-term 
contract management since taking responsibility for human 
resource planning, contract review and control.  Human Resources has also engaged a consultant and has commenced 
reviewing guidelines and management of short-term contracts 
with a view to putting in place a strengthened resource planning system. 
8. Review the need for short-term staff in Divisions where short-term 
staff remain for long periods abov e the agreed acceptable number of 
renewals. S 31.12.10 
W.I.P  
 On-going, some short-term contracts confirmed to have been 
ended already with no further renewal.  Notice of no further 
renewal has been given for others.  Also See response under recommendation No. 7. 
9. Review the overtime and compensa tion guidelines to reflect the 
current and acceptable situation unde r which overtime is worked and a 
meal allowance that is reflective of the current economic situation. 
Have the guidelines approved by management and post them on the 
intranet in order to promote transparency. M3 31.12.10 
W.I.P  Human Resources is preparing a draft policy on overtime with 
the Administration and General Services Division.  The policy 
including guidelines will be posted on the intranet once 
reviewed by the Joint Advisory Committee (JAC) and approved 
by the Director-General. 
10. Retention policy - Review the policy and provide guidelines on what 
documents should remain on file and what should be discarded when 
staff exit the organization for purposes of uniformity and consistency. L4 31.12.10 
W.I.P  
 Human Resources is reviewing the retention policy in the 
context of the electronic archivin g project HR is taking forward 
with LDIMD.  Pursuant to th is review, Human Resources will 
provide guidelines and timeframes on what documents should be retained on file and what should be discarded and by when 
after staff exit the organization. 
11. Benchmark with similar organizations to emulate best practice for 
recruiting consultants. S 31.12.10 
W.I.P  
 Human Resources has become increasingly informed of 
consultancy contracts across Divisions since taking over responsibility for the Staff Requisition process.  Human 
Resources is also benchmarki ng recruitment practices for 
consultants with other organizations in order to identify best practices and has engaged a consultant to look at this area 
among others. 
                                                      
3 Moderate. 
4 Low.  
   WT/BFA/W/226
 Page 17Implementation status as reported by the implementing Division and 
verified by Internal Audit Internal Audit recommen dation- by Division Audit 
Rating 
Date  Status update  
12. Keep track of consultants, Pane llists and Appellate body members 
employed by the organization in form of a central register. S 31.12.10 
Open  
 
 As from 2011, Human Resources will create a central register to 
keep track of consultants an d Appellate Body members.  
Human Resources agrees to review the tracking of, Panellists at a later stage. 
13. Understand the need for consultants by the different Divisions.  
Review the recruitment process for consultants and guidelines in order 
to streamline the process and ensure consistency in application of terms 
and conditions. S 31.12.10 
W.I.P  
 See response under recommendation 11. 
14. Review regular posts that are occupied by consultants on a long-term 
basis to ensure that consultants and retired experts do not serve as a 
long-term alternative to regular staffi ng, if not justifie d.  Fill the vacant 
positions through the recommended recruitment procedure. S 31.12.10 
W.I.P.  
 
 
 Regular posts occupied by consultants on a long-term basis 
have been advertised and are being filled through the official 
recruitment procedure Human Resources will review guidelines 
and management of consultants to ensure that regular functions 
are, unless otherwise justifie d, carried out by staff. 
15. Sign the requisition for consultants in order to keep track of the 
numbers and nature of consultants that are being recruited and carry out 
the necessary checks. S 31.12.10 
W.I.P.  
 
 New resource management and staff requisition process is in 
force w.e.f 15 November 2010 w ith all types of recruitment 
now requiring the approval of HRD.  As from 2011, HR is 
keeping track of the consultants that are being recruited. Internal audit is to allow ample time for effective 
implementation before audit review in 2011.  
16. Establish a database of pre-qualified consultants in consultation with 
the Divisions to monitor, follow up and evaluate the use and benefits of engaging consultants. S 31.12.10 
Open
 
 
 Human Resources is ready to review the cost/benefit of 
establishing a consultant databa se/roster in consultation with 
Divisional users. 
17. Take the leading role in controlling and managing the movement and 
remuneration of consultants and other staff between different contracts of employment to ensure compliance with the recruitment guidelines of 
the organization and the required competition for employment. S 31.12.10 
W.I.P
 
 It is hoped that the new resource management and staff 
requisition process in place w.e. f 15/11/2010 will help HRD to 
take a leading role in approving all requests for human resource 
requisitions, as well as planning and managing the resource 
needs of the organization, including controlling and managing 
the employment of staff to ensure compliance with guidelines, 
duration periods and competitive processes.  
18. Fill vacant positions on a timely basis. S 31.12.10 
W.I.P  
 
 With regard to the 24-post plan, and while ensuring 
organizational needs and priorities are effectively met, all 
available vacant positions (18) have been filled or are in the process of being filled .  The remaining 6 positions will be filled 
as soon as they become available.   Timeliness to be assessed at 
the next follow up audit and trend to be compared over a longer period to cover both 2010 and 2011 as appropriate   
  WT/BFA/W/226 
Page 18 Implementation status as reported by the implementing Division and 
verified by Internal Audit Internal Audit recommen dation- by Division Audit 
Rating 
Date  Status update  
19. Ensure that all Divisions comply with laid down SSA guidelines for 
engaging consultants. S 31.12.10 
W.I.P  
 Since HRD has taken responsibility for human resource 
planning, staff requisitions and control, HRD monitors and 
reviews that Divisions comply with applicable HR guidelines. To give ample time for implementation of the new procedure 
before assessing compliance. 
20. Review the contracts awarded to employees to reflect the budget 
charged.  A consultant if so coded should be awarded an SSA and not a short-term contract. S 31.12.10 
W.I.P
 
 
 Human Resources has started to consult with the Budget and 
Finance Section on this matter, to ensure that the coding reflects the contract awarded. 
AGSD, Budget, Finance and Payroll Unit     
21. Nominate a super user and possible back up to take over ownership, 
management and accountability of the HRMS payroll from Informatics. 
 S 31.12.10 
W.I.P  Super user nominated and non-technical payroll tasks 
confirmed to be gradually taken over and handled by Finance. 
. 
 
22. Make use of the payroll audit log for detecting anomalies in the payroll 
in a more efficient and effective manner. S 31.12.10 
Closed  The Budget & Finance Section uses the audit log and performs 
the necessary controls with it since October 2010. 
23. Review access rights and limit acce ss only to staff with a direct 
obligation to deal with HRMS payroll data notably those in the payroll 
unit. S 31.12.10 
W.I.P  Access rights of staff deemed to have no direct obligation to 
deal with HRMS payroll data have been reviewed and removed.  
A policy on granting access rights has been drafted and shall be implemented before the end of 2010. 
24. Review the Budget and Finance functions for better segregation of 
duties. S 31.12.10 
W.I.P  Several meetings have been held with the internal auditor and 
the Budget & Finance Section to discuss this matter and find a 
common agreement.  There is progress in the specific 
demarcation of duties.  To be monitored and further assessed 
during follow up audit in 2011  
25. Review the draft manuals for adeq uacy, in particular review the 
definition of roles and responsibilities to be more elaborate and 
specific, give examples of payments and focus on a reduction in copies of documents being printed in a bid to move towards a paperless 
environment.  Have the manuals approved as final versions. M 31.12.10 
W.I.P
 The user manuals have been finalized in November 2010.  An 
overall payroll policy is being currently drafted. 
26. Review the budget charged to reflect the contract to be awarded.  A 
consultant if so coded should be awarded an SSA and not a short-term contract. S 31.12.10 
Open
 
 The Budget & Finance Section is changing effective 1 January 
2011 the coding categorisation of staff, consultants and others.  To be reviewed in 2011. 
27. Review the categorising of short-term staff and consultants in the 
financial accounts to reflect the actual contract awarded. S 31.12.10 
Open  Same as above it will be effective as of 1 January 2011.  To be 
reviewed in 2011.  
   WT/BFA/W/226
 Page 19Implementation status as reported by the implementing Division and 
verified by Internal Audit Internal Audit recommen dation- by Division Audit 
Rating 
Date  Status update  
28. In the financial accounts/statement s, consider the possibility of 
categorising consulting companies separately from individual 
consultants for better identification, analysis, planning and decision making. M 31.12.10 
Open
 
 
 Same as above it will be effective as of 1 January 2011.  To be 
reviewed in 2011. 
Informatics     
29. Release full ownership, management and accountability of the HRMS 
data and payroll to HRD and Payroll unit.  Only enable, support and fix 
technical HRMS data and payroll problems. S 31.12.10 
Open  With Super users from HRD and Finance (payroll unit) now 
nominated, Audit to follow up further progress in 2011. 
30. Provide nominated super users from HRD and payroll unit with 
appropriate training in order to reinforce ownership, management and 
accountability of their resp ective functions and be able to provide first 
level support. S 31.12.10 
Open  
 If HRD and Finance have the required training budget, INFD 
will assist to find the necessary courses, to be complemented 
internally for WTO-specific environment. 
31. Follow up with oracle and ensure that the audit log is operational. S 31.12.10 
Closed  The technical problem was resolved and Finance Unit advised 
accordingly.  Additional reports based on audit tables can be 
added if requested.  Audit log for the audited period 2007-
December 2010 was reviewed and found to be operational 
32. Review access rights of Informatics staff to the HRMS payroll 
database and limit access rights appropriately. S 31.12.10 
W.I.P  
 
 
 
  
 
  
 
  
 Oracle application is an integrated ERP, and all modules are 
linked to one another.  Even th ough all staff in AASS that deal 
with ERP areas are not directly involved in the HRMS part of the application, these responsib ilities are still necessary in order 
to conduct the work efficiently. 
Access to consultants is provided only for the duration of their contract, so that they can perform the required tasks. 
Audit still thinks HRMS /payroll access rights should be granted 
to only those involved in the HRMS part of the application, 2 in number. 
 Informatics will put in place a pr ocess with access rights of IT 
Staff to the ERP, to be signed by directors of HRD, AGSD and INFD, indicating that any change needs to be validated by the 3 
directors. 
All Divisions     
33. Comply with the SSA guidelines for consultants after they have been 
reviewed and approved by management. S 30.06.10  
Open  
   
  WT/BFA/W/226 
Page 20 ANNEX III 
 
PROCUREMENT AUDIT RECOMMENDATIONS 
 
Implementation Status as at 31st December 2010  
 
Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
Director General (DG)    
1. Establish a permanent contracts committee with properly 
defined responsibilities.  18.12.08  
Closed  
 (OFFICE (08)/69 - 18/12/08, & OFFICE (08)/70 - 18/12/08). 
Procurement    
21.07.09  
Closed  
 
 Ref. email to staff on 21 July 2 009 ''OFFICE (09)/46 - NOTICE TO THE 
STAFF - WTO PROCUREMENT POLICY:   WTO PURCHASING 
AND CONTRACTING.'' 2. Put in place detailed and documented instructions to guide 
the procurement function.  
 
 
 31.12.10  
Closed  
 Procurement manual submitted and appr oved by DG with detailed and 
documented instructions to guide the procurement function 
 
Define, document and implement  the acceptable format 
and criteria for: 
 
i. Requisitioning for goods and services.  All purchases 
and renewal of contracts should be initiated by a 
purchase requisition. 
  
 
 
15.04.09  
Closed  
  
 
 
Help service page" is in use for initiating requisitions. 
ii. Accepting bids, the bidding process, evaluating 
tenders and awarding contracts. 
 First quarter 
of 2009  
Closed  
 
  Bidding and evaluation procedures are in use by Procurement clients.  
Standard terms and conditions and a standard contract are in use for 
bidding. 
 
iii. Identifying, vetting, selecting and approving 
providers, to include background checks and a list of 
pre- qualified providers. 
 First quarter 
of 2009  
Closed  
 
 A vendor registration form is in use.  
  
   WT/BFA/W/226
 Page 21Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
iv. Creating and managing a database for the 
providers and managing the relationship with providers. 31.12.10  
Open  
 A working group was created betw een the Finance and Procurement 
Section in order to streamline the vendor database and to make it more 
efficient.   
v. Dealing with urgent purchases. 
 30.04.10  
Closed  
 
 An Email is circulated to contract s committee members after receiving all 
required documentation clearly stipul ating justification for the waiver 
from the respective buyer.  The relevant documentation was reviewed 
and found satisfactory.  
 
3. Establish detailed guidelines for the application of Rule 
10.3(c). 31.12.10  
Open  
 
 A meeting is being convened on the s ubject with the new Director of HR 
and the Legal Counsel. 
To be addressed during the HR Procurement Plan meeting (1st week of 
February 2011).  
4. Determine persons within each cost centre who are 
authorised to make and approve purchase requisitions. 30.04.10  
Closed  
 The responsibility matrix of the procurement policy indicates that the 
primary responsibility for preparatio n of fully funded requisitions lies 
with the requisitioning unit. 
Since the activation of the purchase requisition module would ensure that 
access rights are given to the appropria te delegated persons within a cost 
centre this will be followed up by audit with Informatics Division under 
recommendation no. 25. 
 
5. Reverse the double entry in Oracle CHF 67,375.   
 30.11.08   
Closed  Implemented 
6. Control the splitting of purchases and ensure that all 
purchases CHF 50,000 and above go through the contracts 
committee and the bidding process.  Sensitise all those who 
need to know about this requirement. 31.12.10 
Closed  The modified purchase order has a provision to show any additional 
supplies made by a vendor by means of a system amendment to the 
respective PO.  The amended POs are used to monitor purchases reaching 
the threshold and notifying the Contracts Committee.  excluding 
contracts that have been the s ubject of the Commi ttee's previous 
approval.  Splitting of purchases was found to be on the decline. 
The review considers the controls in place to be adequate. 
  
  WT/BFA/W/226 
Page 22 Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
 30.04.10  
Closed  
 
 The Chief of Procurement Section issued an instruction to all 
Procurement Section staff to ensure that all orders exceeding CHF 50,000 
had been approved by the Contracts Committee.  
Purchase orders and contracts are be ing approved per authority outlined 
in the procurement policy.  
 
7. Determine the terms and conditions  of contract to be included 
on the Purchase Order (PO). 30.11.10  
Closed  
 The modified  Purchase order template was introduced on 1 August 2010 
with reference made to WTO General Terms and Conditions to be 
consulted on the WTO web site. 
8. Ensure as much as possible, that contracts to be entered into 
with providers are drawn up by WTO. 30.06.09  
Closed  The Procurement policy reinforces the requirement to use standard 
contracts wherever possible and to ensure that advice and clearance is 
sought from Legal Counsel whenever a non-WTO contract is signed- The 
audit review confirmed th is to be the practice. 
 
9. Study the possibility of reducing the number of Purchase 
Orders being printed.  Deliver the printed copies to the 
respective recipients on a timely basis. 
 
 
 
 
 
 
 31.12.10 
Closed  
 
 
 
 
 - Only 4 copies are now printed instead of 5 .The Budget/inventory 
copy is no longer needed and therefore not printed; 
- In addition to the delivery of the PO copy for Economat, and to 
ensure timely knowledge of purchase details by Economat staff, 
there are instructions on the modified PO for the supplier to notify 
Economat of intended delivery 48 hours before delivery.  This is to 
enable Economat staff to know in advance for planning purposes 
what has been purchased, when the delivery will take place and any 
other relevant terms. 
30.04.10 
Closed  
 The current bon de commande (PO) was modified to include a field 
which enables the authorised officer to sign the PO.  All POs are being 
signed by authorised Officers in compliance with prescribed delegation 
of authority and at times counter signe d by the contracts officer which is 
a good check and management of the purchase orders. 10. Manage and sign Purchase Orders going out to providers. 
Establish approval limits for Procurement staff. 
30.04.10 
Closed  
 Delegation of authority was granted to all purchasing staff by the DDG in 
charge of Finance in a letter dated 22 February 2010.
In compliance with Financial Rule 5.1 and the procurement policy, 
contracts for the purchase of goods, equipment, works and/or services are 
now entered into on behalf of WTO only by an official duly authorized in 
writing by the DDG for this purpose.  
   WT/BFA/W/226
 Page 23Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
11. Identify and repatriate all curren t, original contracts to the 
Procurement Unit for custody and management. 31.12.10 
W.I.P  
 - Procurement has taken over the upkeep of the database, and is due to 
update  it with all the active contracts; Paper copies of the original 
contracts and the key to the safe are to be handed over to the Chief of 
procurement Section after which IMS (Information Management 
Services)  will no longer have access to the database; 
- Upon expiration of contracts, pr ocurement will hand over respective 
paper contracts to IMS, these contracts will remain however 
accessible in the database; 
12. Re-submit the frame agreement and contracted price list with 
PEG to the contracts committee for review, to include all 
relevant office supplies at favourable rates. 31.12.10 
W.I.P  
 Technical evaluation of the bids is in  progress.  Procurement Section will 
ensure that all items are ordered as per contractual terms and pricing.  
13. Rotate employees of Procurem ent Unit within a specified 
period as required by best Procurement practice. 31.12.10 
Closed  
 
 
 Changes have taken place within the Pr ocurement Section in the last two 
years in terms of new procurement guidelines and procedures, 
recruitment of new staff, organization of the Section and hence changes 
in the way staff work. Staff have been rotated within the Section which 
has had a good impact on procurement operations. 
The audit review found the changes to be adequate.  
Budget and Finance    
14. Certify the budget check (Visa stamp) with a valid 
signature.  28.02.09 
Closed  
 Implemented  vide document dated 20th February 2009 'list of official 
stamps.' The stamps are numbered to facilitate changes in staff  or 
position.  
15. Review the invoice payment process to arrive at a reduced 
cycle (lead time) and pa y within payment terms 30.04.10 
Closed  Invoices for Dec2009-Feb 2010 were verified to be paid within 30 days 
with a practice to send out reminders each month to Divisions in case of 
delays in certifying the invoices for work done;  
Any delays in certification and ev entual payment are being properly 
tracked.  
16. Define, document and implemen t the acceptable format and 
criteria for receiving goods and certifying work done. 
Utilise delivery reports or a goods received stamp for 
acknowledging receipt of goods and certifying work done. 
 30.11.10  
W.I.P  
 
 
 
 The invoice payment policy is in the final stages of drafting.  The on-
going improvements in processes within Budget and Finance section e.g. 
iprocurement initiatives will impact the policy and these need to be taken 
into consideration if a solid policy is to be achieved.  Internal audit is to 
continue monitoring the progress.   
  WT/BFA/W/226 
Page 24 Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
17. Ensure that all invoices are received at one focal point, 
registry, and ensure that they have a valid stamp. 
 30.04.10 
Closed  
 The modified Purchase order contains an instruction to vendors to 
address invoices to Finance Unit; 
Date Stamp also confirmed to be in use. 
 
18. Amend Fin.  Rule 10.2 and other relevant Fin. Regulations 
and rules to reflect the correct title of AGSD Division. 30.04.10 
Closed  According to Finance section, as Financial Rules and Regulations are 
more difficult to modify (Gener al Council approval), all new 
implementation policy referring to the Financial Rules and Regulations 
are defining the change in name of AGSD e.g. payment policy and 
procurement policy. This was found to  be the practice and was found to 
be sufficient in the circumstances.  However a comprehensive review of 
the Financial Rules and regulations commenced in 2010 to make them 
IPSAS compliant and relevant. 
Reproduction    
19. Open up stock control registers to monitor Reproduction 
stock and its usage.  
 
 28.02.09  
Closed  
 Excel is used to track the receipts, issues and stock on hand.  It is now 
easier to track the Reproduction stock movement and compare with stock 
on hand.  Also see recommendation no.29 
 
Information Management Service    
20. Improve the contract (IT link) database management and 
post all the valid contracts. 28.02.09 
Closed  
 
 
 A review of the electronic contract da tabase indicated that Contracts were 
found to be easily identifiable in the database and they were 
corresponding to the same number of similar contracts filed in a locked 
safe within archives.  
21. Provide OIA with all the origin al contracts for confirmation 
of their existence and review. 
 28.02.09 
Closed  
 Contracts were provided to OIA.  Information management Section is 
assessing the possibility of designin g a web application with access to 
authorised users only.  Provision was made for a back-up person to give 
access to the safe as necessary.  
 
Administration and General Services Division (AGSD)  
               Refer to 21 above  Agreements with Cambridge 
University Press not signed by all parties and no originals on 
file. 31.12.10  
Closed  With proper procurement procedures in place the original Agreement was 
confirmed to be duly signed by both WTO and Cambridge University 
Press dated 14thJuly 2010. 
  
   WT/BFA/W/226
 Page 25Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
Procurement, Budget and Finance    
22. Establish clear ownership and accountability of the 
requisitioning process and PO approval process. 30.11.10 
W.I.P 
 On the procurement side, this is addressed in the procurement policy and 
the manual. 
On the Budget and Finance side, the work on the   
iprocurement module and the implementation of the work flow is 
expected to address the concerns ra ised here.  A few steps to clarify 
ownership of procurement in particular areas is however on-going.   
23. Determine and document the persons responsible for: 
 
i. Signing Purchase Orders and contracts including any value 
limits.  (Procurement) 
  
30.04.10 
Closed  
 
  
 
i. Individual delegation of authority including value limits of purchase 
orders and contracts was granted by the DGG in charge of Finance in 
writing to all procurement staff in line with the procurement policy 
and manual. 
 
ii. Approving the budget to be spent and any value limits.  
(Budget and Finance) 
 
 30.11.10 
Open  
 
 
 ii. To start with only a delegation of authority for budget commitments 
and not a policy.  The work on the iprocurement module and the 
implementation of the work flow is also expected to address the 
concerns raised here. 
 
iii. Making payments and the value limits. 
        (Budget and Finance) 30.04.10 
Closed  iii. A Payment Policy, establishing ownership and accountability on 
payment, dated 29th June 2009 was, duly approved by the DG. 
Informatics    
24. Activate: 
i. The purchase requisition module (Oracle). 
ii. 'The delivery of goods' f eature of the Procurement 
module (Oracle).  
31.12.10 
W.I.P  
 
 
 
 
  
- Budget and Finance Section (BFS) and IT organized with Kynergy 
Company a quick setup on the WT O environment the iProcurement 
(purchase requisition       and delivery functions) and invoice 
approval functions.  A presentation of the result was done to the 
relevant staff on 21 October 2010. 
- BFS to implement at first the invoice approval functions scheduled 
to start work in early February 2011and iProcurment thereafter. 
25. Optimise the use of the Procurement module (Oracle)  by: 
i. Configuring it to progressively produce revised copies 
of the PO every time amendments are made. 
ii. Indicating the name or signature of the person who is 
authorising the PO for better accountability. 30.11.10 
Closed  
 The modified purchase order was verified to be in operation since 
August 2010 with all the recommended configurations in place. 
 
  
  WT/BFA/W/226 
Page 26 Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
iii. Indicating the name of the person who is carrying out 
the PO budget check. 
26. Add the Head of Procurement to the approval levels in 
Oracle, and train her in the use of Oracle. 30.04.10 
Closed  
 
 
 
 
 
 
 
 
 
 Purchase orders   ( hard copies) are currently reviewed and initialled 
either by the Contracts Officer or Ch ief of Section before despatch to 
vendors; 
Procurement staff are underwent  coaching  on the job by for 3 months to 
demonstrate a full understanding of the Financial Rules, the procurement 
policy, contracts committee proced ures and current procurement 
procedures before effectively implementing the delegation of authority 
pertaining to approval of purchase orders and contracts;  
With the above measures in place a udit was satisfied that there was 
adequate supervision of procurement staff to detect any significant 
anomalies, which was the original objective of the recommendation. 
27. Control informatics file copies of the PO. 28.02.09 
Closed  
  
Implemented.  The Procurement copy is now clearly marked so, the same 
with the archives copy, for ease of identification. 
 
Getronics file reviewed with measures being taken by the contracts 
committee to ensure adequate contro l in granting waivers to Getronics 
(e.g., request for IT strategy, procurement plan). Control measures found 
satisfactory. 28. Refer to no.21 - Contracts with Getronics Schweiz AG and 
Lenovo. 30.04.10 
Closed  
 
 
 
31.07.09 
Closed  In the statement of specifications with Lenovo (supply of PCs) CHF 
105,994, the indicated terms contain a warranty of 3 years up to year 
2010 after which there would be a review of the Procurement process for 
PCs. Warranty clause found to satisfy the previous query of not having a 
binding contract. 
29. Explore the possibility of utilising the Oracle 
stock/inventory module to monitor the different types of 
stock in WTO (Reproduction, Economat, IT, AGSD, 
Publications) for uniformity and consistency. 
 
 
 
 30.11.10 
Open  
(Long-
Term)  - According the IPSAS project plan, the Budget & Finance Section is 
studying the specifications required, to be IPSAS compliant with our 
ERP Oracle.  
- In a second phase, depending on the resources, to examine if the 
inventory function can be integrated in only one application and 
replace the excel files by an appli cation directly integrated in the 
inventory environment. 
  
   WT/BFA/W/226
 Page 27Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
Legal    
30. Review all contracts before conclusion and certify such 
review with a dated stamp and/or initials. 
 
 
 
 
 
 
 31.12.10 
Closed  
 
 Verification by the Legal Counsel gives rise to the initialling by the latter 
of the circulation cover sheet attach ed to the contract.  When vendors 
insist on using their contracts and either  the nature of the contractor (e.g. 
Microsoft) or the time available or  the value of the contract does not 
make it practical to enter into negotia tions to make the contractor accept 
WTO standard terms and conditions, the Legal Counsel suggests a letter 
(called "spare wheel") submitti ng WTO acceptance of the vendor's 
contract to the modification of essential clauses (privileges and 
immunities, applicable law, dispute settlement).  
31. Reassess the legal resources. 
 November  
2009 
Closed  
 A post of Legal Counsel to the Administration (DGO) was created 
through OFFICE (09)/54 in Septembe r 2009.  Additional resources were 
added through the recruitment of a G8 Legal Officer in November 2009. 
The Legal Counsel manages a budget line for outside consultation with 
respect to legal aspects of the extension of the CWR 
32. Reassess the duration of relevant long-term contracts and 
formalise the time required for re-opening bids for such 
contracts. 
 
 
 30.04.10 
Closed  
 
 
 
 Contracts which, for some specific r easons are concluded for periods of 
more than a year now contain cl auses providing for their yearly 
assessment and the possibility of an early termination if and when the 
contractor does not address the shortcomings identified by the WTO. 
They also provide for non-extension without compensation if budget is 
not made available to continue the funding of the contract. 
33. Review the adequacy of staff regulation 1.9 'solicitation or 
receipt of gifts or favours between vendors and employees', 
and include the means of sensitisation and communication 
to employees and vendors. 30.11.10 
Open  
 
 An Ethics Network has been set up by IGOs in Switzerland in early 2010 
and the information collected so far is being used to prepare a "user-
friendly" ethics policy for relations with the private sector.  The Legal 
Counsel is to submit a draft to management for comments.  
AGSD Logistics    
34. Open up stock control registers to monitor Economat stock 
and its usage. 31.12.10 
Closed  
 
 
 
 A list of old stock exists and Economat now monitors orders so as to 
limit wastage and overstocking of existing items, giving out items 
contained in the old stock before ordering new ones. 
An update is made to the stock list each time old stock is issued out.   
  WT/BFA/W/226 
Page 28 Date and implementation status as reported by the implementing  
Division and verified  by Internal Audit Internal Audit reco mmendation by Divisi on/Section/Unit - 
November 2008  
Status date Implementation status 
35. Identify and utilise office supplies that have overstayed in 
store.  Procurement to liaise with Economat before making 
any purchases to avoid buying items already in stock. 
 
 31.12.10 
Closed  
 
 Old stock has been properly segregated; 
The list of supplies in storage was a ddressed to the Admins in April and 
June 2010 respectively, asking them to give priority to supplies in stock. 
including any stock emanating from th e staff movement exercise due to 
the on-going renovation and construction project. 
Admin.  Assistants are always reminded of the availability of old stock 
when they collect stock from the store  to avoid procuring  similar  items 
which previously posed the risk of overstocking, items becoming 
obsolete and financial loss to the organization. 
 
36. Ensure that the receiving units  consistently sign against the 
items received from stores. 31.12.10 
Closed  
 Economat routinely now asks Admins to confirm their orders by e-mail, 
and a signature at the time of withdrawal.  Both old and new Stock was 
verified to be signed for when issued out. 
 
37. Plan for adequate storage space for Reproduction stock 
after the renovation and construction of CWR.  31.12.10 
Open  
(Long-
Term)  This is part of the terms of reference for the construction project. 
Approximately 85m2 is to be allocated as st orage space for reproduction 
(Roneo) stock and machinery in the new building. 
All Divisions    
38. Work out a Procurement plan simultaneously during the 
budgeting process and forward to Procurement Unit for 
planning purposes. 
 31.12.10 
Closed  
  Some Divisions submitted plans for 2009.  Meetings were held with 
different Divisions in 2010 to explain further the nature of data and 
documentation required from the Divisions and the role of the 
procurement section in the planning process; A procurement plan 
template is part of the procurement manual plus guidelines to be used by 
all Divisions.  From the procurement plan a procurement strategy will be 
presented to the contracts committee.  This remains a continuous process 
for all the Divisions but the guidelin es in place and progress so far made 
were found to be adequate. 
39. There should be better planni ng of staff replacements and 
overall succession planning. 31.07.09 
Closed  This item was specific to the Archivist as stated in no.21 above and has 
been satisfactorily fulfilled.  
40. Plan projects well in advance in order to reduce urgent 
purchases to a minimum and avoid an increase in requests 
for waivers. 
 31.12.10 
Closed  As stated in 38 above, the procurem ent planning process spearheaded by 
procurement and involving various Divisions was found to be adequate in 
mitigating any unjustified urgent purchases and unjustified requests for 
waivers. 
41. All work done should be properly certified by the 
respective Divisions before payment.  30.04.10 
.Closed  
 Verified and found to be operating satisfactorily.  Budget and Finance 
Section sends out reminders each month to  Divisions in case of delays in 
certifying the invoices for work done.   
   WT/BFA/W/226
 Page 29 
ANNEX IV 
 
MISSION TRAVEL AUDIT RECOMMENDATIONS  
 
Implementation Status as at 31 December 2010  
 
Implementation Status by the implementing  Division and verified by Internal 
Audit Audit recommendation and responsible Division - June 2009  
Status date Status update 
DG and Management    
1. Decide whether DSA reimbursement should be based on actual 
cost 100 per cent with supporting receipts, par tial cost,  that is, 
cost of the hotel + 50 per cent DS A or consider the DSA as given, 
to be a lump sum to cover all expenditure liable to be incurred by 
officials on an official journey.  30.11.10 
W.I.P1 
 Item is a consideration of the revised travel policy which is in draft 
form and awaiting management's review, comments and approval.  To 
verify when revised policy comes into force. 
Budget and Finance    
2. Invoice sponsoring bodies, with outstanding amounts. 30.11.10 
Open  
 The Budget Unit is regularly liaising with the divisions to monitor the 
situation on the amount outstanding.  Divisions retain the contact with 
the third party sponsor.  The division is responsible to recover amounts 
due once the mission is complete.  Periodically, the budget section will 
follow-up with divisions who have outstanding amounts. 
Internal audit to continue monitoring the status 
3. Utilise the receivable acc ount to post, and to follow up outstanding 
amounts due from outside financing bodies with the relevant 
Divisions. 30.11.10 
Closed  Account 41609020 'Receivabl e Travel Invoicing' has been used, since 
September 2009, to record amounts du e from third parties sponsoring 
our mission costs.  Recovery of amounts from sponsoring bodies will 
be monitored under observation no.2. 
 
4. Split mission travel into categories of airfares & DSA when 
posting in financials for better analysis. 30.06.10 
Closed  A/c 7D2101010 (Mission/Official/airfares) and A/c 7D2101020 
(Mission/Official/DSA & Terminal s) seen and verified to be 
operational. 
5. Reduce the time taken to process travel claims. 
 30.11.10 
Closed  Though there are a few exceptiona l cases with a processing time over 
the recommended 30 days, the aver age processing time January – 
November 2010 was verified to be 15 days which is in compliance 
with the recommended time. 
6. Reimburse terminal expenses based on receipts up to a specified 
maximum amount to be agreed. 30.11.10 
W.I.P  
 The new Travel Policy being submitted to Management contains more 
specific requirements regarding terminal expenses. 
                                                      
1 Work is in progress.  
  WT/BFA/W/226 
Page 30 Implementation Status by the implementing  Division and verified by Internal 
Audit Audit recommendation and responsible Division - June 2009  
Status date Status update 
7. Stamp all paid ticket invoices from CWL with a control number 
and date to avoid double payment pending the introduction of 
electronic travel invoicing. 30.06.10 
Closed      Electronic invoicing was verified to be operational since January 
2010.  Each invoice is allocated a system based Purchase order 
number as a control measure.  The control was found to be adequate.  
8. Provide a feasible solution to la rge amounts of cash carried by 
Logistics Unit for participants' DSA. 13.12.10 
W.I.P  Management resolved in a mee ting on 13 December 2010 not to 
authorize, for security reasons, WTO staff to handle and transport cash, 
to be followed by a detailed policy in 2011. 
9. External audit observation follow-up- Un-refundable ticket 
amounts not disclosed in accounts. 30.11.10 
W.I.P  Account 41609030 'Receivable Carlso n Wagonlits' not yet operational. 
It should be made operational to reflect the movement of the un-
refundable ticket amounts in the accoun ts and to enable the budget to 
recharge the divisional travel budget with any un-recovered amount per 
feedback under observation no.3 above. 
 
ADMINISTRATION AND GENERAL SERVICES    
10. Review and document all the rates applicable to participants and 
have them approved. 31.12.10 
W.I.P  In consultation with ITTC a policy proposal on '  expenses relating to 
WTO-funded training courses, seminars, symposia and workshops 'was 
submitted by Chief Budget and Finance to management for 
consideration and approval To be verified in 2011.  
11. Review and amend the admin. memorandum (policy guidelines) to 
include the following: 
- Prov. 41 - To debit the receivabl e account and not budget account, 
failure to recover, then debit Division budget or write off as 
appropriate; 
- Prov. 41- To include invoicing of outside financing bodies by 
Finance; 
- Prov. 6 - Travel requests for Directors to be approved by 
respective DDGs and those of DDGs to be approved by DG's 
office; 
- Prov. 6 - To include requirement to attach invitation letters where 
applicable; 
- Prov. 31 to incorporate all ap plicable DSA rates to include 
Appellate body members, Panellists, Consultants; 
- To specify all the different categ ories of officials to whom the 
Memorandum is applicable; 
- A documented criteria for evaluating all forms of mission travel 
under the regular budget e.g. business case or summary mission 
report upon return; 30.11.10 
W.I.P  Draft revised policy awaiting management review, comments and 
approval.   
   WT/BFA/W/226
 Page 31Implementation Status by the implementing  Division and verified by Internal 
Audit Audit recommendation and responsible Division - June 2009  
Status date Status update 
- A consistent and clear definition of  the ‘necessary documents’ to 
be attached to travel claims  including the purpose of each 
document; 
- A more detailed breakdown of the DSA components e.g. 15 per 
cent per meal etc. 
- Clarify Management's agreed decision of accountability for DSA 
reimbursement   deemed to cove r all expenditure liable to be 
incurred by officials on an official journey. 
Informatics    
12. Provide Internal Audit with a tool for extracting and analysing 
different types of data independently and accurately. 30.11.10 
W.I.P  Training on the use of the new tool is on-going. 
13. Approval of Directors' travel  by respective DDGs and DDGs' 
travel by DG's office should be catered for under e-travel.  31.10.09 
Closed  eTravel tool configured to comply with recommended approval levels. 
Oracle System entries verified by audit and approval levels found to be 
compliant. 
14. Configure etravel to make it possible and obligatory for staff to 
attach invitation letters and other relevant documents. W.I.P  Second Version now operational making it possible to attach, 
(add/remove/view) electronic documents to missions, i.e. Invitation 
letters, Programs, itinerary, when requesting an eTravel. To be verified 
in 2011. 
15. Optimise the use of e-travel by exte nding it to areas applicable to 
all logistics for mission travel covering Regional and Technical 
Assistance activities funded from Extra-budgetary funds for 
instance the requisition and approval for participants' travel. 
Consider sending attachments e.g. list of participants, budget 
estimates etc. electronically via e- travel for approval to reduce on 
processing time, minimise the printing of hard copies and help 
streamline logistics activities. 30.11.10 
Open  
 
 
 
 
 
 To be revisited after the restructuring of  IITC Logistics Unit 
emanating from a management decisi on to put all Logistical tasks 
under one Unit as a result of a recen t audit on the activities of Logistics 
Unit and similar/replicated activities by other ITTC Units. 
 
ITTC    
16. In collaboration with Budget a nd Finance Section, agree for 
approval, DSA rates and other entitlements applicable to 
participants and outside consultants.  Incorporate in practical 
guide. 13.12.10 
W.I.P  In consultation with Budget and Finance, a policy proposal on '  
expenses relating to WTO-funded training courses, seminars, symposia 
and workshops' was submitted by Chief Budget and Finance to 
management for consideration and approval To be verified in 2011. 
17. Make the practical guide an o ffice document to be placed on 
Intranet for use by staff who need it. 30.11.10 
Closed  The practical guide is no w on intranet and availa ble for those who need 
to consult it. 
18. Request Informatics to automate the requisition and approval 
process of logistics activities.  This will facilitate the sending of 
participants' lists, budget estimates etc. as attachments for approval 30.11.10 
Open  
 As in 15 above  
  WT/BFA/W/226 
Page 32 Implementation Status by the implementing  Division and verified by Internal 
Audit Audit recommendation and responsible Division - June 2009  
Status date Status update 
by e-travel in order to reduce on the processing time, minimise the 
printing of hard copies and help streamline logistics activities.  
19. In collaboration with Budget and Finance Section, work out a 
feasible solution to large amounts of cash that is carried by 
Logistics Unit for participants' DSA. 13.12.10 
W.I.P  Management resolved in a mee ting on 13 December 2010 not to 
authorize, for security reasons, WTO staff to handle and transport cash, 
to be followed by a detailed policy in 2011. 
All Divisions   
20. Travel requests for Directors should be approved by their 
respective DDGs and travel requests for DDGs should be 
approved by DG's office. 31.10.09 
Closed  Directive set out in October 2009 to DDGs and Directors to implement 
the change.  System entries were verified by Internal audit and 
approval levels found to be compliant. 
21. To follow up outstanding amounts due from outside financing 
bodies and update Finance accordingly. 30.11.10 
Open  
 Effective 2010, the monitoring is done by the Budget Unit using a 
dedicated account. 
Internal audit to continue monitoring the status. 
22. Attach invitation letters to trav el requests where applicable. W.I.P   etravel now has the possibility of attaching letters.  The use and 
effectiveness of the new version to be verified in 2011. 
23. All employees travelling on mission should attach original 
boarding passes and original hotel  receipts to travel claims. 30.11.10 
W.I.P  
 Included in draft amended Travel Po licy, which is awaiting review and 
approval by Management. 
 
__________