RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/231 
7 March 2011 
 (11-1119) 
Committee on Budget, Finance and Administration  
  
 
WTO BUDGETARY AND FINANCIAL PROGRESS REPORT 
 
 
I. INTRODUCTION 
1. This document provides Members with an update on the WTO budgeta ry and financial 
situation at the end of 2010 a nd after two months in 2011.  
II. 2010 WTO BUDGET PERFORMANCE 
2. The Budget & Finance Section has closed the 2010 accounts and is in the process of 
preparing the WTO 2010 financial statements.  These fi nancial statements will be audited in April by 
the External Auditor before being released to  the Members in the second semester of 2011. 
3. The call for tenders for equipping the South C ourtyard Conference Centre was finalized in 
December 2010.  DEGW, a company based in Lyon, France, was awarded a CHF 3.8 million contract 
to equip the Conference Centre.  The result of th e call for tenders is below the initially estimated 
amount of CHF 4.5 million.  As approved by the Committee in November 2010
1, this contract is 
funded by using available 2010 budgetary savings su pplemented by an allocation from the Members' 
Transition Operating Fund. 
4. The budgetary savings of CHF 2.1 million in 201 0 has been fully allocated to fund the 
equipping of the South Conference Centre.  Th e remaining CHF 1.7 million is funded from the 
Members' Transition Operating Fund.  The WTO 2010 budget has therefore been fully committed and 
no budgetary savings will be reported as indicated in the following table.  
WTO 2010 Consolidated Budget Performance  
Unaudited amounts in Swiss Francs  
 
Budget Actual Actual/ Part Section 2010 31/12/2010 Budget 
A 1 Work Years 125,599,300 122,668,646  98% 
  2 Temporary Assistance 15,875,300 17,613,712  111% 
B 3 Communications 1,786,500 1,550,748  87% 
  4 Building Facilities 3,843,000 4,644,222  121% 
  5 Permanent Equipment 1,130,000 3,911,776  346% 
  6 Expendable Supplies 1,191,000 1,016,537  85% 
  7 Contractual Services 9,298,000 8,566,586  92% 
C 8 Staff Overheads 4,624,000 4,402,214  95% 
  9 Missions 2,939,000 2,825,615  96% 
  10 Trade Policy Courses 3,315,000 2,630,278  79% 
  11 Various 6,349,500 6,120,266  96% 
D 13 ITC 18,038,900 18,038,900  100% 
Grand Total 193,989,500 193,989,500  100% 
                                                      
1 Members' Transition Operating Fund , WT/BFA/W/220, 16 November 2010. WT/BFA/W/231 
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  5. The overspending in Sections 4 and 5 of the budget are essentially due to the  impact of the 
on-going building project on the operations of the WTO Secretariat.  It comprises the budget allocation of CHF 2.1 million for the South Courtyard Conference Centre. 
6. The WTO should nonetheless report a positive year-end balance on the Surplus Account. 
While budgetary savings are generated exclusively from the difference between approved and actual 
expenditure, the Surplus Account includes othe r accounting elements such as variations in 
miscellaneous income, gain/loss on foreign exchange , savings on prior year outstanding commitments 
and provisions for outstanding contributions.  At the end of 2010, in accordance with a  
recommendation by the External Auditor, the WT O Secretariat changed its accounting methodology 
for calculating provisions for contributions in arr ears.  This change of methodology will have a 
positive impact on the Surplus Account at the end of  2010 and is presented in more detail in a separate 
document
2.   
III. 2011 WTO BUDGET PERFORMANCE 
7. The 2011 Budget remains on schedule after two months.  The following table presents the 
consolidated budget by sections.  
WTO 2011 Consolidated Budget Performance  
 
Amounts in Swiss Francs  
 
Budget Actual Actual/ Part Section 2011 28/02/2011 Budget 
A 1 Work Years 126,310,600 19,179,110  15% 
  2 Temporary Assistance 15,992,700 7,051,050  44% 
B 3 Communications 1,786,500 136,740  8% 
  4 Building Facilities 3,866,000 1,648,600  43% 
  5 Permanent Equipment 1,089,000 398,680  37% 
  6 Expendable Supplies 1,281,000 796,550  62% 
  7 Contractual Services 9,236,600 6,658,090  72% 
C 8 Staff Overheads 4,827,000 499,890  10% 
  9 Missions 2,939,000 290,920  10% 
  10 Trade Policy Courses 3,315,000 111,850  3% 
  11 Various 6,449,500 3,197,090  50% 
D 13 ITC 18,911,000 3,068,400  16% 
Grand Total 196,003,900 43,036,960  22% 
 
IV. CONTRIBUTIONS FROM MEMBERS AND OBSERVERS  
8. The level of contributions receipts from Members and Observers in 2010 was in line with 
prior years.  Members paid overall 95 per cent of  their 2010 contributions.  The overall outstanding 
balance has been reduced, especially for tho se Members that had long outstanding arrears. 
                                                      
2 Change of Method in Provisions for Contributions in Arrears, WT/BFA/W/223, 14 February 2011. 
  WT/BFA/W/231 
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Situation on Members and Observers Contributions  
 
On 31 December 2010  
 
 Members 
(CHF) Observers 
(CHF) 
Total net assessment for 2010  188,072,580  884,015 
Payment received for 2010 (% of total 
assessment) (95%) 178,209,849 (74%) 653,349 
Payment received for prior y ears  12,020,957  111,356 
No outstanding balance (% of total) (68%) 104 (74%) 23 
 
9. The level of contribution receipts from Members and Observers at the start of 2011 is below 
that received in prior years.  Members paid overall 37 per cent of their 2011 contributions at the end 
of February 2011. 
Situation on Members and Observers Contributions  
 
On 28 February 2011  
 
 Members 
(CHF) Observers 
(CHF) 
Total net assessment for 2011  194,116,048  903,495 
Payment received for 2011 (% of total 
assessment) (37%)   72,752,541 (22%) 199,226 
Payment received for prior years  2,562,785  0 
No outstanding balance (% of total) (24%) 36 (19%) 6 
 
V. WTO TREASURY MANAGEMENT 
10. The WTO holds CHF 102 million at the end of February 2011.  This amount includes the 
amount of the Working Capital Fund and funds held on behalf of trust funds.  The situation is in line 
with prior years and there are no short-term cash fl ow concerns.  The WTO holds most of its cash in 
Swiss Francs.  This cash, which is predominately he ld with banks, earns a low interest of less than 
0.30 per cent. 
 WT/BFA/W/231 
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(15) (20)94102
-250255075100125
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECMillions CHF
Projected Receipts Actual Receipts Projected Expenditures
Actual Expenditures Total Cash 2010 Total Cash 2011 
 
VI. IMPLEMENTATION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING 
STANDARDS 
11. In 2011, the WTO will continue to follow a progressive approach to the implementation of 
International Public Sector Accounting Standard s (IPSAS) with a view to complying with these 
standards by 2012.  The organization will implement the relevant standards to the extent possible 
under the terms of the current Financial Regulations a nd Rules.  However, it is important to note that 
the WTO will only be able to declare itself to be  IPSAS compliant once all the relevant standards 
have been fully implemented.  This approach has been noted and accepted by the External Auditor in 
his last two reports.  
12. In 2010, the key gap assessments on the chart of  accounts, financial statements and fixed 
assets have been completed and the actions necessary to bridge the gap between existing practice and 
IPSAS compliance have been implemented.  The prin cipal new IPSAS information to be disclosed in 
the 2010 financial statements will be the actuarial valuation of the liabilities related to pension and 
after-service health care benefits. 
13. In 2011, the main areas of work will be the fi nalization of the gap assessments related to the 
inventories, intangible assets and accrued charges as well as the review and revision of the WTO Financial Regulations.  Progress on IP SAS implementation is consistent  with the project plan which 
means that the Organization remains currently on track  to produce its first IPSAS compliant financial 
statements for the 2012 financial period. 
VII. REVIEW OF WTO FINANCIAL REGULATIONS 
14. IPSAS implementation will require some ch anges to the WTO Financial Regulations, 
especially to establish the accrual-based accounting methodology. 
15. The current WTO Financial Regulations and Rul es have become relatively out-dated.  The 
Secretariat is proposing that the WTO Financial Regulations be updated to  reflect contemporary 
terminology, to align  with  current standards, to  include a number of elements that have become 
standard practice but have never been formally added to the Regulations/Rules, and to add new 
elements of corporate governance that have beco me best practice such as an internal control 
framework, a risk management approach  and an internal audit function.  WT/BFA/W/231 
 Page 5 
 
 
  16. The Secretariat intends to provide a proposal to the Committee in the coming months.  In 
order to facilitate the review of this proposal, th e Committee may wish to consider establishing a  
working group.  This working group would be able  to explore the proposal in greater detail.  
VIII.  BUDGET & FINANCE SECTION ORANIZATIONAL CHANGES 
17. The Budget & Finance Section, part of the Administration and General Services Division, 
provides financial services that support the WTO Secr etariat in achieving its objectives.  This includes 
the planning, budgeting, accounting, payroll, treas ury and travel management functions for all 
activities financed by the WTO regular budget or through trust funds.  
18. Over the last three years, these functions have been subject to a concerted effort to improve 
operational efficiency.   As a result, the Administ ration and General Services Division was able to 
release three posts in 2010: two through non-renewa l of contracts and one through internal mobility.  
Two posts were at grade 10 (the post of the Head of the Trust Fund Unit and the post of the Chief of the former Finance and Accounts Section, now me rged in the Budget & Finance Section) and one 
support post in the Travel Unit funded through extr a-budgetary resources.  This represents a reduction 
of more than 10 per cent in the staff resources of the Section. 
19. Subsequently, the Budget & Finance Section h as reorganized and reallocated its remaining 
staff to 1) continue concentrating on improvement s in administrative/operational efficiency and 2) 
enhance the levels of strategic a nd customer service support provided by the Section.  In particular, 
these changes are intended to bring more focus on th e planning, analysis and management of financial 
performance within the Organization. 
20. The new structure of the Budget & Finance Section is presented in Annex. 
 
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