WORLD TRADE  
ORGANIZATION  WT/BFA/W/193 
23 December 2009 
 (09-6697) 
Committee on Budget, Finance and Administration  
  
 
     
 
 
REPORT BY THE OFFICE OF INTERNAL AUDIT (OIA) 
 
MARCH 2008 – JULY 2009 
 
   
   
 
 
     
 
    
 
    
 
     
 
    
 
     
 
    
 
     
 
    
 
     WT/BFA/W/193 
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 Summary: 
 
This report reviews the Internal Audit activities of the World Trade Organization for the period 
since its inception in March 2008 to July 2009. The report addresses OIA's establishment and background, audit activities and res ources, challenges and way forward. 
 
During the period, OIA: 
 
- Issued an audit charter; 
- Drew up a risk-based annual plan for 2008 which was carried forward to 
2009; 
- Issued two audit reports, on procurement and mission travel, with 
recommendations to improve and strengthen internal controls, 
accountability mechanisms and organizational efficiency and 
effectiveness; 
- Carried out a global desk review of  the existing authority and approval 
levels that are being exercised by WTO staff especially those bearing a significant financial impact on the organization; 
- Undertook follow up audits to verify  the implementation of the audit 
recommendations for the procurement audit; 
- Drafted an internal audit policy and procedure manual which is under 
review by the DG.   
   
 
 
     
 
    
 
    
 
     
 
    
 
     
 
    
 
     
 
    
 
     WT/BFA/W/193 
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TABLE OF CONTENTS 
 
            P a g e  
 
I. BACKGROUND ..................................................................................................................... ..7 
II. INTERNAL AUDIT ACTIVITIES .........................................................................................7  
A. INDUCTION OF THE HEAD OF OIA...............................................................................................7  
B. INTERNAL AUDIT CHARTER AND INTERNAL AUDIT PLAN ...........................................................7  
C. PROCUREMENT AUDIT ................................................................................................................8  
D. MISSION TRAVEL AUDIT .............................................................................................................9  
E. DELEGATION OF AUTHORITY - A GLOBAL PERSPECTIVE .........................................................10  
F. FOLLOW UP AND IMPLEMENTATION ..........................................................................................11  
G. WTO  INTERNAL AUDIT – POLICY AND PROCEDURE MANUAL ................................................11  
III. OTHER ACTIVITIES............................................................................................................11  
IV. INTERNAL AUDIT RESOURCES ......................................................................................12  
V. PERSONNEL DEVELOPMENT AND NETWORKING ..................................................12  
VI. CHALLENGES..................................................................................................................... ..12 
VII. LOOKING FORWARD.........................................................................................................13  
VIII.  CONCLUSION ..................................................................................................................... ..13 
ANNEX I........................................................................................................................ .......................14  
ANNEX II ....................................................................................................................... ......................21  
 
   WT/BFA/W/193 
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  ACRONYMS 
 
OIA Office of Internal Audit 
DG Director-General  
WTO  World Trade Organization 
IIA Institute of Internal Auditors 
IPSAS  International Public Sector Accounting Standards 
HR Human Resources 
DSA  Daily Subsistence Allowance 
CWR  Centre William Rappard 
CWL  Carlson Wagonlit 
CPC  Construction Project Committee  
DDGs  Deputy Directors General 
CHF  Swiss Francs 
ITTC  Institute for Training and Technical Cooperation 
LAD Legal Affairs Division 
ITB Invitation to Bid 
RFP Request for Proposals 
  
  WT/BFA/W/193 
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  I. BACKGROUND 
1. Following the decision of the General Council1, that proposed the establishment of OIA, the 
office came into existence during the first quarter (M arch) of 2008.  As indicated in the internal audit 
charter item K(g) 'Reporting', OIA will present an annual summary report to the Director-General, 
with a copy to the External Auditor.  The report will also be presented to the Committee on Budget, 
Finance and Administration. 
2. The Internal Audit mission is to examine a nd evaluate, in an independent and professional 
manner, WTO's financial, budgetary control syst ems and processes and provide recommendations for 
improvement.  The objective being, to assist management and staff in the efficient and effective discharge of their financial responsibilities and th e achievement of the organization's financial 
objectives and goals.  Using a systematic and discip lined approach, the audit function promotes best 
practice and adds value by helping the organization to  improve its financial ri sk management, internal 
controls, accountability and governance processes. 
3. As far as possible, internal audit activities are undertaken to address areas of potential risk 
likely to affect WTO's ability to carry out its  mandated financial and budgetary obligations. 
4. The OIA conducts its audits in accordance with  the IIA international standards for the 
professional practice of internal auditing and the code of ethics. 
II. INTERNAL AUDIT ACTIVITIES 
A. I
NDUCTION OF THE HEAD OF OIA 
5. The second quarter of 2008 was used by the Head OIA for induction, that is, to meet with 
management and a cross section of staff in various  WTO Divisions in order to have an overview of 
the operations of the organization.  The Head OIA used the opportunity to explain the role and tasks 
of the audit function as a way of fostering coope ration, promoting in-house understanding of the 
function and discussing areas that require audit evalua tion.  The induction therefore provided valuable 
input for the 2008 internal audit plan while ensuring that the highest priority audits are undertaken. 
6. The Head OIA was also able to meet with internal auditors of  other International 
Organizations to gain an insight into their audit activities. 
B. INTERNAL AUDIT CHARTER AND INTERNAL AUDIT PLAN  
7. The WTO internal audit charter and audit plan for 2008 were compiled by OIA during the 
third quarter of 2008.  They were approved by the DG and issued to senior ma nagement in July 2008 
and to the rest of the staff in September 2008.  They were presented to the Committee on Budget, 
Finance and Administration in October 2008. 
8. The internal audit charter explains the purpose, authority, responsibility and scope of Internal 
Audit activities and the framework within which the Internal Audit function of WTO operates. 
9. The audit plan for 2008 was designed using a risk-based approach to meet the objective of 
providing a robust Internal Audit function for the first time in WTO in a manner that addresses areas of perceived potential risk across the financia l and budgetary spectrum of WTO operations.  OIA 
prioritised the potential risk areas that were highlig hted by management and staff during the induction 
process of the Head OIA accord ing to their likelihood of occurrence and their impact on the 
                                                     
 
1 WT/GC/101, dated 7 December 2005. WT/BFA/W/193 
Page 8  
 
  organization.  Those with a higher likelihood of occurrence and a higher impact on the organization 
were included in the audit plan for 2008. 
C. P
ROCUREMENT AUDIT  
10. Technical audit work commenced in August 2008, the first audit being "Delegation of 
authority in engaging financial resources with em phasis on the procurement function".  The audit 
formed part of the audit plan for 2008 and cove red the period January 2008 - July 2008.  A 
representative sample of documents were reviewed and subjected to relevant audit tests.  Where 
relevant, documents outside this audit period were also reviewed. 
11. The audit scope covered the requisitioning stage to delivery of goods/services and payment to 
the provider. 
12. Some providers were visited at random to verify  the documents despatched to them and also 
to see if there were any problems being e xperienced with the procurement process. 
13. An audit report was issued by OIA in November 2008. 
14. In choosing the audit subject, consideration was given to: 
- The renovation of the CWR and the construction of the new WTO building estimated at 
CHF 130 million over a five-year period.  Th is would give the procurement function 
more responsibilities and the need for a mo re streamlined and professional function 
because a higher volume of valuable transactions would be processed.  
- The fact that the procurement Section ha d nobody heading it for 6 (six) months from 
21 December 2007 to 23 June 2008 when the new Chief of Procurement was recruited. 
15. A review of the procurement function was theref ore vital to ensure that the necessary controls 
were in place to mitigate any feasible risks. 
16. The objectives of the audit were: 
- To assess compliance with the provisions of the Financial Regulations and Rules; 
- In as far as possible and taking into consideration any ongoing consultancy work on the 
procurement function, prior recommendations  by any other previous reviews, and 
ongoing initiatives to improve the function, assess  whether all expenditure on externally 
sourced works, equipment, goods, supplies, ser vices and personnel is subject to best 
procurement practice and that the necessary leve ls of financial, operational controls and 
monitoring are in place; 
- To appraise accountability, and integrity of data; 
- To follow up any procurement related obser vations and recommendations made by the 
External Auditors; 
 
- To make any other audit recommendations  aimed at streamlining the procurement 
function. 
  WT/BFA/W/193 
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  17. The results of the audit showed that there were financial, compliance, reputational, 
operational and system risks posed by the proc urement activity in its then existing state. 
18. Thirty-eight recommendations were made initiall y and they were agreed with the intended 
implementers. Forty one recommendations were fina lly confirmed for implementation and follow up. 
19. Follow-up audits were undertaken in February  2009 and July 2009 respectively to ascertain 
the implementation status of the agreed audit recommendations.  Results of the follow-up audits 
indicate that implementation is complete and clo sed for 27 per cent of the recommendations.  Though 
still open, work is in progress for 51 per cent of the recommendations and 22 per cent of the 
recommendations remain open pending  implementati on.  Of the 22 per cent that remain to be 
implemented, some are long term, pending the doc umentation of detailed operational policies and 
procedures, the completion of the WTO renovation and construction project or completion of the 
IPSAS project.  See Annex I for the implementation status update as at 31 July 2009.  
D. MISSION TRAVEL AUDIT  
20. The audit was carried out in line with the audit plan for the year 2008, carried forward to 2009 
and covered the period January 2008 - December 2008.  Where relevant, documents outside this audit 
period were also taken into consideration. 
21. The audit report was issued in June 2009 with  23 recommendations to be implemented by the 
different Divisions. 
22. The nature of work carried out by WTO necessitate s a lot of travel.  It is therefore important 
that the necessary checks and balan ces are in place to ensure that proper accountability and value for 
money is derived from such travel.  Mission travel was therefore the main focus of the audit review.  
It constituted both mission travel financed from the regular budget and travel associated with 
technical assistance activities (both national and regi onal) financed from extra-budgetary funds.  It  
covered both WTO Secretariat and the Appellate body and its secretariat. 
23. A review and testing of a representative samp le of mission travel documents chosen at 
random, was carried out together with an analysis of mission travel data provided by Informatics. 
24. The audit excluded HR based travel financed from the HR budget, rental of meeting rooms 
and related facilities.  Compliance with CWL terms a nd conditions of contract was also not tested in 
this audit and will be cons idered for future audits. 
25. The objectives of the audit were to: 
(a) Appraise adequacy, and effectiveness of any existing policy guidelines. 
(b) Examine the process of authorisation, payment and reimbursement of mission travel 
expenses in order to identify potential process improvements. 
(c) Assess the economic and efficient use of fi nancial resources and identify areas of cost 
saving. 
(d) Review accountability by staff, adequacy of internal controls and integrity of 
financial data as provided by Informatics Division. 
(e) Benchmark WTO mission travel activities ag ainst those of similar International 
Organizations. WT/BFA/W/193 
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  (f) Make recommendations, as appropriate to mitigate any potential risks. 
26. Total expenditure (Air fares, DSA, hotel e xpenses) on mission travel was CHF 14,049,020 for 
the year 2008.  Travel financed from extr a-budgetary funds constitute d 81 per cent of total 
expenditure with ITTC activities taking up th e biggest percentage of the expenditure. 
27. The results of the audit indicated: 
• inadequate content and clarity in the missi on travel policy guidelines leaving room for  
non-compliance, misinterpretation, and abuse; 
 
• internal control weaknesses e.g. no segre gation of duties, paid CWL invoices not 
stamped, invitation letters not attached to travel requests, large amounts of cash being carried by hand; 
 
• inadequate accountability wh en making travel claims. 
 28. Discussions were held with various process owne rs and the relevant managers to agree on 
recommendations pertaining to policy areas and intern al controls that need to be strengthened. 
29. Benchmarking was done with other Internati onal Organizations and advice on cost saving 
initiatives was sought from CWL, the tr avel agent used by WTO.  Th e results were used to offer 
guidance to management in evaluating and coming up with the most efficient and effective mission 
travel policy guidelines for WTO. 
30. Although a follow up audit has not yet been conducted to assess the implementation status of 
the audit recommendations, there is evident progr ess in their implementation.  See annex II for a 
summary of recommendations.  
E. D
ELEGATION OF AUTHORITY - A GLOBAL PERSPECTIVE  
31. This was a desk review conducted as part of th e 2008 internal audit plan carried forward to 
2009.  The review indicates the existing authority and approval levels that are being exercised by WTO staff especially those bearing a significant financial impact on the organization. 
32. The objective of the review was initially, to make the DG aware of such levels, and any 
identified sources of such authority which specifica lly state the limitation or delegation of that 
authority.  The review was a global perspective, not  detailed in nature and therefore, there were no 
recommendations to the report.  However referenc e was made to recommendations made in the 
concluded procurement and mission travel audits, the recently approved policy documents, notably 
the procurement policy and payment policy, any work  in progress and planned audit initiatives related 
to this subject matter.  
33. The period reviewed was January - May 200 9 with reference to 2008 as appropriate. 
34. Information was recorded as seen from documen ts obtained from various Divisions and/or 
Sections of WTO.  The approving signatures on th e different documents were confirmed with the 
relevant Managers.  Information was also obtained from the financial system, Oracle. 
35. Results of the desk review indicate that measu res are being taken to streamline, improve and 
document the existing authority and approval levels in the organization.  The results of the desk 
review will be updated on a continuous basis to inco rporate any new areas identified during audits and 
to include any changes made in the authority and ap proval levels.  Any identified potential risk areas  WT/BFA/W/193 
 Page 11 
 
 
  and internal control weaknesses in the delegation of  authority and approval levels will be considered 
for inclusion in future audit plans and will be a udited in detail under specific auditable areas as has 
already been done for the completed audits namely, Procurement and Travel. 
36. The desk review marked  the commencement of an ongoing  process aimed at documenting 
all the significant authority and approval levels within WTO to culminate into a comprehensive 
document to be completed mid 2010 and published to all staff for their information and guidance in 
fulfilling their financial obligations.  
F. FOLLOW UP AND IMPLEMENTATION  
37. Item E.6(g) 'scope of work' of the internal a udit charter requires OIA to establish and maintain 
follow-up systems to determine whether effective remedial action has been taken and periodically 
reporting on situations where adequate and timely co rrective action has not been implemented.  To 
this end, follow-up audits will be conducted at least  twice a year, or more often, resources permitting.  
As already mentioned and as indicated in Annex I, follow-up audits were carried out in February and 
July 2009 to verify the implementation status of agreed recommendations pertaining to the procurement audit. 
G. WTO
 INTERNAL AUDIT – POLICY AND PROCEDURE MANUAL  
38. Item J.9(e) 'Audit planning' of the internal audit charter requires OIA to prepare, publish, 
disseminate and maintain an internal audit manual, which shall include the terms of reference of the 
Internal Audit function and a compilation of audit pr ocedures.  The manual is in draft form and it is 
being reviewed by the DG. 
39. Notwithstanding the foregoing, the manual is not designed to be all inclusive or unduly 
restrictive.  Its provisions are intended to s upplement the experience, competencies, skills and 
judgment of auditors in planning, conducting a nd reporting on audits and in managing the overall 
internal audit activity.  As such, audit of fraud or financial irregularity and other special requests may 
not strictly follow the procedures laid down in the manual. 
40. The key objectives of the manual are therefore: 
(a) To set forth the guidelines by which the In ternal Audit function will be carried out 
and provide a common and consistent basis for all WTO Internal Auditors to carry 
out their work as part of a disci plined approach to auditing. 
(b) To provide quality assurance in deliver ing audit services to the organization. 
(c) Performance monitoring and c ontrol of audit operations. 
(d) To define OIA's relationship with all Divisions of the organization. 
41. When finalized, the manual will be made av ailable to all staff via the intranet. 
III. OTHER ACTIVITIES 
42. During the reporting period, OIA engaged in other value adding activities as follows: 
- Giving advice as and when necessary on the IPSAS project; WT/BFA/W/193 
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  - During audit engagements, OIA followe d up and will continue following up 
recommendations made by the External Auditors  to ensure that appropriate action is 
taken; 
- OIA has been included as an observer on meetings pertaining to the CPC project and 
will attend as an observer and give advice as and when the need arises; 
- OIA gives advice on financial, budgetary and process aspects as and when contacted 
by other Divisions. 
IV. INTERNAL AUDIT RESOURCES 
43. The approved OIA structure comprises the Head OIA and a support/clerical staff per 
proposals in Conference Room Paper, Reference: CRP (05) 26 dated 28 
 October 2005. 
44. In 2008, OIA consisted of the Head and an Inte rnal Auditor.  The Internal Auditor remained 
with OIA until 31 December 2008.  An assistant position was successfully filled in the final quarter of 
2008 and the successful candidate took up her duties on 1 January 2009.  With effect from 1 January 
2009 therefore and in compliance with CRP (05) 26, the office consists of the Head and an Assistant 
who is mainly tasked with administrative responsibilities. 
45. An intern was hired for three months, June - August 2009 to help with the follow-up audits 
and was tasked with reviewing the implementati on status of recommendations pertaining to the 
procurement audit under the supervision of the Head  OIA.  The Head OIA concentrated on finalising 
the travel audit and carrying out the desk audit on  delegation of authority- a global perspective. 
46. It is eminent that as the function grows and mo re audits are carried out, coupled with the 
requirement to undertake follow up audits, and for continuity purposes, the resources of the OIA will need to be re-evaluated.  For the time being this ga p is partially catered for by including in the audit 
budget for the next two years, the requirement to have  an intern during the first and third quarters of 
the year to help with the follow up audits. 
V. PERSONNEL DEVELOPMENT AND NETWORKING 
47. During the period under review, OIA staff took pa rt in audit related refresher courses notably, 
public speaking and presentation skills, internal a uditing tools and techniques, among others, for 
purposes of continued professional development wh ich is a requirement by the IIA.  They 
participated, collaborated and networked with  other International Organizations including 
Representatives of Internal Audit Services (RIAS) of the United Nations Organizations, Multilateral 
Financial Institutions, and Associat ed Intergovernmental Organizations
 for purposes of bench 
marking OIA activities and sharing best practices.  The interaction was found to be very useful for OIA which is still in its infant stages in terms of its establishment. 
VI. CHALLENGES 
48. As a new function, OIA has had and continues to: 
- Study and understand the different activities to be audited in depth in order to come up 
with accurate and meaningful analysis and recommendations; 
 - Educate the auditees about the audit function.  WT/BFA/W/193 
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  49. Availability of Information: 
- Whereas efforts are made to provide Internal  Audit with the requi red financial data, it 
takes time, at times over 1 (one) month to ge t the data in the required format and to 
validate it.  Internal Audit has to de pend on financial data as provided by the 
Informatics Division. 
 
- This is because it is the first time information is being requested for in such a format.  
Parameters have to be set first to get the required information, which information has to 
be obtained from different Oracle modules including payables module, receivables module, etc. 
 
50. Taking into consideration  the lean staffing of OIA, it is recommended that the office should 
be availed with a working tool in the form of a simple audit software to independently extract and 
analyse financial data faster and accurately.  To respond to this request, the Informatics Division 
recently acquired a Business Intelligence tool and is  currently setting it up and training staff from 
Budget and Finance Section.  At the end of the ex ercise, a session will be organized with OIA to 
assess if it can easily be used for auditing purposes.  Depending on the requirements of OIA, 
Informatics will also assess if procedures could be enhanced. 
51. The above factors though inevitable, continue  to slow down the audit process and they 
affected the completion of the audit plan for 2008 r esulting in some of the planned items being carried 
forward to 2009. 
VII. LOOKING FORWARD 
52. OIA will continue to: 
- communicate and emphasize the contents of the audit charter to management and staff 
for purposes of strengthening th e internal audit position; 
- explain to auditees the role of OIA befo re commencing any audit by conducting an 
opening conference; 
- keep relevant auditees abreast of audit proceedings, findings and recommended action 
during audits and after audits. 
53. As part of the Audit Plan for 2008 carried forw ard to 2009, OIA will undertake an audit of the 
Payroll activities, due to commence in the last quarter of the year 2009. 
54. OIA will work on a fraud policy encompassing the whole organization in 2010. 
55. Discussions will be held with senior management  during the last quarter of 2009 to identify 
potential risk areas to be included in the 2010 internal audit plan. 
VIII.  CONCLUSION 
56. Despite the challenges mentioned above, the audit function is progressing well.  OIA has had 
good support from senior manageme nt, has enjoyed a good working re lationship with the auditees and 
there is good progress in implementing the agreed audit recommendations. 
 
_______________  
  WT/BFA/W/193 
Page 14 ANNEX I 
SUMMARY OF PROCUREMENT AUDIT RECOMMENDATIONS – IMPLEMENTATION STATUS AS AT 31 JULY 2009 
 
Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
Director-General (DG)     
1. Establish a permanent contracts committee with properly 
defined responsibilities.   Implemented and Closed 
Ref: OFFICE(08)/69 - 
18/12/08, & OFFICE(08)/70 - 
18/12/08  
Procurement     
2. Put in place detailed and documented instructions to guide the 
procurement function. 
 30 June 2009 
 Implemented and Closed on 
21 July 2009 ref:  
''OFFICE(09)/46 - NOTICE 
TO THE STAFF - WTO 
PROCUREMENT POLICY:   
WTO PURCHASING AND 
CONTRACTING.''   
Define, document and implemen t 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. 
 
ii. Accepting bids, the bidding process, evaluating tenders and 
awarding contracts. 
 
iii. Identifying, vetting, selecting and approving providers, to 
include background checks and a list of pre- qualified 
providers. 
 15 April 2009 
First quarter of 2009 
First quarter of 2009      Implemented and Closed  - "Help service page" is in use for 
initiating requisitions.  
 
- Bidding and evaluation procedures are 
in use by Procurement clients. 
Standard terms and conditions and a 
standard contract  are in use for 
bidding. 
- A vendor registration form is in use. 
iv. Creating and managing a database for the providers and 
managing the relationship with providers. 
 First quarter of 2009  OPEN / W.I.P1 Procurement Section is actively working on 
improving the completeness of vendor 
information in the Oracle database. 
                                                      
1 W.I.P. = Work in Progress  
   WT/BFA/W/193
 Page 15Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
v. Dealing with urgent purchases. 
 First quarter of 2009  OPEN / W.I.P  Working on the possibility of circulating 
urgent submissions amongst Contracts 
Committee Members outside the regular 
meeting schedule. 
3. Establish detailed guidelines for the application of 
Rule 10.3(c). 30 June 2009  OPEN The Procurement policy specifically 
excludes the procedures for the hiring of 
individual consultants.  Discussions to be 
held with HR and LAD to determine how 
to proceed. 
4. Determine persons within each cost centre who are 
authorized to make and approve purchase requisitions. 15 April 2009  OPEN / W.I.P Audit Comment :  To be verified by internal 
audit, against  detailed guidelines that will 
be laid down in the Procurement manual 
and to appraise comp liance accordingly . 
5. Reverse the double entry in Oracle CHF 67,375.   
  Implemented and Closed  
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. 30 June 2009 OPEN / W.I.P  Provision included in the Procurement 
Policy, under 'related orders' for orders with 
a single supplier exceeding a total of  CHF 
70,000 within a 12-month period. 
Written instructions were given by the 
Chief of procurement to her staff in the first 
quarter of 2009 to comply accordingly. 
Audit Comment :  -  being monitored by 
audit for compliance. 
7. Determine the terms and conditions of contract to be included 
on the Purchase Order (PO). Action taken  OPEN / W.I.P  - The terms and conditions form part of 
the ITB/RFP documentation.  
- The vendor registration process obliges 
suppliers to confirm their acceptance 
of the standard terms and conditions.  
- An interim solution of referring to the 
standard terms and conditions on the 
Purchase Order will be used 'WTO 
terms and conditions apply to this 
order' until these can be incorporated 
on the purchase order.  
8. Ensure as much as possible, that contracts to be entered into 
with providers are drawn up by WTO. 30 June 2009  Implemented and Closed The Procurement policy reinforces the 
requirement to use standard contracts 
wherever possible and to ensure that advice  
  WT/BFA/W/193 
Page 16 Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
is sought from LAD whenever a non-WTO 
contract is signed – The audit review 
confirmed this to be the case.  
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. 30 April 2009 with 
Informatics  OPEN / W.I.P  The Procurement Section will increasingly 
distribute copies by email and will pursue 
this with Informatics. 
10. Manage and sign Purchase Orders going out to providers. 
Establish approval limits for Procurement staff. 30 June 2009 OPEN / W.I.P  Approval limits are in corporated in the 
Procurement policy. Audit Comment :  To 
be monitored for compliance by audit. 
11. Identify and repatriate all current, original contracts to the 
Procurement Unit for custody and management. First quarter of 2009 OPEN /W.I.P  Audit Comment :  Being monitored by audit 
for full compliance. 
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. 30 April 2009  OPEN / W.I.P Progress has been made with some items 
now included in the contract list.  
Procurement Section will review the 
contract to ensure that all items are ordered 
as per contractual terms and pricing .  
13. Review the adequacy of staff regulation 1.9 'solicitation or 
receipt of gifts or favours be tween vendors and employees', 
and include the means of sensitisation and communication to  
employees and vendors. Action by LAD 
30 June 2009  OPEN / W.I.P Draft policy is under review. 
14. Rotate employees of Procurement Unit within a specified 
period as required by best Procurement practice. 
  OPEN  
Budget and Finance  
    
15. Certify the budget ch eck (Visa stamp) with a valid signature.   Implemented and Closed  
Ref: document dated 
20 February 2009 'list of 
official stamps.' The stamps 
are numbered to facilitate 
changes in staff  or position.   
16. Review the invoice payment process to arrive at a reduced 
cycle (lead time) and pay within payment terms. 
 1 April 2009 OPEN / W.I.P Significant progress has been made, invoice 
processing has been centralized in the 
Budget & Finance Section on 1 April 2009 
and all invoices are stamped by Finance 
w.e.f.  1 August 2009. 
Audit Comment :  Lead time to be verified 
by Audit.  
   WT/BFA/W/193
 Page 17Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
17. 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 ce rtifying work done. 30 September 2009 OPEN / W.I.P  An invoice settlement policy is being 
drafted. 
18. Ensure that all invoices are received at one focal point, 
register, and ensure that they have a valid stamp. 1 August 2009 OPEN / W.I.P. All invoices are now to be addressed to the 
Finance Unit and are being date stamped 
w.e.f. 1 August 2009. 
Audit Comment :  To be verified by Audit. 
19. Amend Financial Rule 10.2 and other relevant Financial 
Regulations and rules to reflect the correct title of AGSD 
Division.  OPEN / W.I.P  All new implementation policies referring 
to the Financial Rules and Regulations are 
defining the change in name of AGSD.  
Audit Comment :  Internal Audit  
recommends the eventual amendment of 
the Financial Rules and Regulations. 
Reproduction  
    
20. Open up stock control registers to monitor Reproduction 
stock and its usage.  28 February 2009 Implemented and Closed Audit Comment :  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.  
Information Management Service  
    
21. Improve the contract (IT link) database management and post 
all the valid contracts. 
 28 February 2009 Implemented and Closed  Audit Comment :  Contracts were found to 
be easily identifiable and corresponding to 
the same number of similar contracts filed 
in a locked safe within archives. 
22. a) Provide OIA (Office of Internal Audit) with all the original 
contracts for confirmation of their existence and review. 28 February 2009 Implemented and Closed Contracts were provided to OIA. 
Information management section is 
assessing the possibility of designing a web 
application with access to authorised users 
only.  Provision has been made for a back-
up person  to give access to the safe as 
necessary. 
Administration and General Services Division (AGSD)  
 
b) All agreements on file should be duly signed by all the contract 
parties notably Agreements with Cambridge University Press.   OPEN    
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Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
Procurement, Budget and Finance     
23. Establish clear ownership and accountability of the 
requisitioning process and PO approval process. 30 June 2009  OPEN / W.I.P  Audit Comment :  Awaiting the 
Procurement manual from procurement and 
delegation of authority on budget 
commitments from Budget and Finance, for 
a detailed break down of responsibilities. 
24. Determine and document the persons responsible for: 
 
i. Signing Purchase Orders and contracts including any value 
limits.  (Procurement) 
 
ii. Approving the budget to be spent and any value limits 
(Budget and Finance) 
 
iii. Making payments and the value limits (Budget and Finance)
 30 June 2009 
31 December 2009  OPEN / W.I.P 
OPEN 
OPEN / W.I.P. Audit Comment :  Approved Procurement 
policy indicates approval levels for 
Purchase Orders but not clear on who 
approves contracts.  Awaiting procurement 
manual for detailed guidelines. 
 
To start with only a delegation of authority 
for budget commitments and not a policy. 
 
A Payment Policy establishing ownership 
and accountability on payment has been 
submitted for approval to the Director-
General. 
Informatics  
    
25. Activate: 
 
i. The purchase requisition module (Oracle). 
 
ii. 'The delivery of goods' feature of the Procurement module 
(Oracle). 
  OPEN (Long term)  - 'Help services page' is in use until the 
purchase requisition module is 
activated. 
 
- The 'delivery of goods' module and 
purchase requisition module to be 
activated when clear processes are in 
place. 
26. 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. 
  OPEN / W.I.P  Audit Comment :  Modified copy is in place 
but not yet in use. 
 
A walk through of the Oracle budget 
approval process by Audit indicates that an 
audit trail exists and therefore it is not 
necessary to indicate the name of the person 
who is carrying out the PO budget check.   
   WT/BFA/W/193
 Page 19Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
iii. Indicating the name of the person who is carrying out the PO 
budget check. 
 Only item i and ii to be included on the 
modified copy.  
27. Add the Head of Procurement to the approval levels in 
Oracle, and train her in the use of Oracle.  OPEN  Audit Comment :  Was awaiting approval of 
the Procurement policy. To be verified by 
Audit. 
28. Control informatics file copies of the PO. 
   Implemented and Closed Audit Comment :  The Procurement copy is 
now clearly marked so, the same with the 
archives copy, for  ease of  identification.  
29. Refer to no.22 - Contracts with Getronics Schweiz AG and 
Lenovo.  OPEN/W.I.P Audit Comment :  The warranty clause with 
Lenovo was found to be satisfactory while 
a binding contract covering all Cisco  
equipment reviewed between Informatics 
and Getronics Schweiz AG is with 
Procurement for validation. 
30. Refer to  no. 20 
Explore the possibility of utilisi ng the Oracle stock module to 
monitor the different types of stock in WTO (Reproduction, 
Economat, IT, AGSD, Publications) for uniformity and 
consistency. 
  OPEN (Long term)  Awaiting implementation of the Assets 
management module in line with the IPSAS 
project. 
Legal     
31. Review all contracts before conclusion and certify such 
review with a dated stamp and/or initials. 
  OPEN Audit Comment :  Standard terms and  
conditions and a standard contract format 
drawn up with input from Legal are in use.  
Where no WTO standard contract is used, 
some of the contracts  are  reviewed by 
Legal. 
For Contracts not managed by Procurement 
and not WTO contracts at the same time, 
they do not go through Legal as yet. 
32. Reassess the legal resources. 
  OPEN / W.I.P This is being monitored for adequacy by 
management coupled with use of 
consultants as and when required for WTO 
Legal work in general.   
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Page 20 Internal Audit Recommendation per 
Division/Section/Unit – November 2008  Action date or 
Proposed action date 
by Division/ 
Section/Unit Audit Assessment of 
Implementation Status Comments from Division/Section/Unit 
33. Reassess the duration of relevant long-term contracts and 
formalise the time required for re-opening bids for such 
contracts. 
  OPEN / W.I.P Audit Comment :  These are being dealt 
with by the Contracts Committee as and 
when they come up.  Audit to continue 
monitoring.  
Infrastructure  
    
34. Plan for adequate storage space for Reproduction stock after 
the renovation and construction of CWR.   OPEN (Long term)  Awaiting completion of the renovation and 
construction project. 
35. Open up stock control registers to monitor Economat stock 
and its usage.  OPEN   
36. 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.  OPEN   
37. Ensure that the receiving units  consistently sign against the 
items received from stores. 
  OPEN / W.I.P Audit Comment :  Staff are now signing 
against the stock items received from 
Economat  but not  for the old items in 
stock.  
All Divisions     
38. Work out a Procurement plan simultaneously during the 
budgeting process and forward to Procurement Unit for 
planning purposes. 
 30 June 2009 OPEN / W.I.P Procurement plans for di fferent sections are 
being drawn up. 
39. There should be better planning of staff replacements and 
overall succession planning.  Implemented and Closed Audit Comment :  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. 
 Action taken  OPEN / W.I.P  As in 38 above. 
41. All work done should be prop erly certified by the respective 
Divisions before payment.   OPEN / W.I.P Stamp was availed by Finance section to all 
requisitioning units in September.   
Audit Comment :  To be reviewed by audit 
for compliance. 
  
   WT/BFA/W/193
 Page 21ANNEX II 
SUMMARY OF MISSION TRAVEL RECOMMENDATIONS JUNE 2009 
 
Audit recommendation per responsible Division/Section/Unit 
 
Budget and Finance  
 
1. Invoice the sponsoring bodies, with outstanding amounts. 
2. Utilise the receivable account to post, and to follow up outstanding amounts due fr om outside financing bo dies with the relevan t Divisions. 
3. Split mission travel into categories of airfares & DS A when posting in financials for better analysis. 
4. Reduce the time taken to process travel claims. 
5. Reimburse terminal expenses based on receipts up to a specified maximum amount to be agreed.  Status update :  Management decision to rema in as is, i.e. no receipts 
required, after cost benefit analysis – Closed . 
6. Stamp all paid ticket invoices from CWL with a control number and date to avoid double payment pending the introduction of elec tronic travel invoicing. 
7. Provide a feasible solution to large amounts of cas h carried by Logistics Unit for participants' DSA. 
8. External audit observation follow up: Un-refundable ticket amounts not disclosed in accounts should be disclosed.  
 
 
All Divisions  
 
9. Travel requests for Directors should be approved by their respective DDGs  and travel requests for DDGs should be approved by DG's office .  Status update:  Directive 
sent out in October to DDGs and Directors to implement the chan ge.  Internal audit to assess compliance during the follow up au dit yet to be scheduled.  
10. To follow up outstanding amounts due from outside fi nancing  bodies and update Finance accordingly. 
11. Attach invitation letters to travel requ ests where applicable or send directly  to Travel Unit in case of eTravel. 
12. All employees travelling on mission should a ttach original boarding passes and orig inal hotel receipts  to travel claims.  Status update:  Management to send out  directive 
to  all staff. Internal audit to assess compliance during the follow up audit yet to be scheduled.  
 
 
Administration and General Services  
 
13. Review and document all the rates applicable to participants and have them approved. 
14. 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 resp ective 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 applicable DSA rates to include Appellate body members, Panellists, Consultants. 
- To specify all the different cat egories 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.  
  WT/BFA/W/193 
Page 22 Audit recommendation per responsible Division/Section/Unit 
- A consistent and clear definition of  the ‘necessary documents’ to  be attached to travel claims  including the purpose of each d ocument. 
- A more detailed breakdown of the DSA components e.g. 15 per cent per meal etc. 
- As decided by Management, clarify accountab ility for DSA reimbursement to be deemed to  cover all expenditure liable to be incur red by officials on an official 
journey. 
 
 
Informatics  
 
15. Provide Internal Audit with a tool fo r extracting and analysing different type s of data independently and accurately. 
16. Approval of Directors' travel by respec tive Directors and DDGs' travel by DG's o ffice should be catered for under eTravel. Status update:   Done, eTravel tool 
configured to comply with recommended approval levels. Closed  
17. Configure eTravel to make it possible and obligatory for staff to attach invitation letters and other relevant documents. 
18. Optimise the use of eTravel by extending it to all logistics for mission travel covering Technical assistance activities funded  from Extra-Budgetary funds for instance 
approval and authorisation process for Regional and Technical A ssistance activities.  Consider sending attachments e.g. list of  participants, budget estimates etc 
electronically via eTravel for approval to reduce on processing time and minimise the printing of hard copies. 
 
ITTC  
 
19. In collaboration with the Finance Section, agree for approval, DSA rates and other entitlements applicable to participants and outside consultants.  Incorporate in 
practical guide. 
20. Make the practical guide an office document to be placed on Intranet for use by staff who need it. 
21. In collaboration with the Finance Section, work out a feasible solution to large amounts of cash that is carried by Logistics U nit for participants' DSA. 
22. Request Informatics to automate the requisition and approval pr ocess of logistics activities.  This will facilitate the sending  of participants' lists, budget estimates etc., as 
attachments for approval by eTravel in order to reduce on the processing time, minimise the printing of hard copies and help st reamline logistics activities.  
 
DG and Management  
 
23. Decide whether DSA reimbursement should be based on actual cost 100 per cent with  supporting receipts, pa rtial cost, cost of th e hotel + 50 per cent DSA 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  Status update : W.I.P. - Management agreed to 
consider the DSA as given, to be a lump sum to cover all expend iture liable to be incurred by officials on an official journey.   Memo to be sent out to staff and travel 
policy to be amended accordingly. Internal audit to  follow up implementation status.  
 
__________