WORLD TRADE  
ORGANIZATION  WT/L/157/Rev.1 
21 May 2007 
 
 (07-2049) 
Committee on Budget, Finance and Administration  
  
 
     
 
 
FINANCIAL RULES1
                                                      
1 Revision approved by the General Council on 9 May 2007, document WT/GC/M/108. OF THE 
WORLD TRADE ORGANIZATION  
 
Revision WT/L/157/Rev.1 
Page 3 
 
 
   
CONTENTS 
               Page  
 
I. Authority an d Applicability   
 
 1.1 Reference .. ............................................................................................................... . 6  
 1.2 Applicability ............................................................................................................ . 6  
 1.3 Responsibility or  implementation .............................................................................  6 
 1.4 Additional instructions to be issued by the ...............................................................  6 
    Deputy Director-General in charge of Finance.......................................................  6 
 1.5 Responsibilities of th e Director of Finance and 
    General Services Division .......................................................................................  6  1.6 Approaches outside the WTO ...................................................................................  6  1.7 Responsibility for funds from external sources ........................................................  6 
 
II. Preparation of the Budget Estimates  
 
 2.1 Form of the budget estimates ....................................................................................  7  2.2 Responsibility for the preparation      of the budget estimates ............................................................................................  7 
 2.3 Furnishing of cost estimates ......................................................................................  7 
 
III. Collection of Contributions and Other Income  
 
 3.1 Responsibility for collection of contributions...........................................................  7 
 3.2 Accounting for receipts..............................................................................................  7 
 3.3 Miscellaneous income ...............................................................................................  8  3.4 Proceeds from the sale of equi pment, discounts or rebates......................................  8 
 3.5 Acceptance of moni es by officials ............................................................................  8 
 3.6 Furnishing of o fficial receipts ...................................................................................  8 
 IV. Appropriations and Allocations  
 
 4.1 Responsibility of the Deputy Director -General in charge of Finance for the  
     implementation of the approved budget  ...............................................................  8  4.2 Responsibility of the Director of  Finance and Genera l Services Division 
    to allocate appropriations in accordance with the Functional Budget ...................  9 
 4.3 Periodic review of th e expenditure position..............................................................  9 
 4.4 Transfers between items with in the approved regular budget..................................  9 
 
V. Control of Obligations  
  5.1 Obligations to be incurred only  by duly authorized  officials  .................................  9 
 5.2 Proposals or drafts having financia l and/or budgetary implications .......................  9 
 5.3 Control of obligations................................................................................................  10  5.4 Obligations to be incurred in conformity with the budget .......................................  10  5.5 Objection to pr oposed obligations.............................................................................  10 
 5.6 Adjustments of obligations........................................................................................  10 
 WT/L/157/Rev.1 
Page 4  
 
  VI. Presentation and Audit of Claims  
 
 6.1 Payments to be made on the basis of claims.............................................................  11  6.2 Claims to be supported by a copy of the order .........................................................  11  6.3 Time-limits for the pr esentation of claims................................................................  11 
 6.4 Audit of claims...........................................................................................................  11 
 6.5 Claims to be accompanied by receiving reports .......................................................  12  6.6 Safeguards. ............................................................................................................... .  12 
 6.7 Objection to a claim...................................................................................................  12  
 VII. Payments  
 
 7.1 Vouchers to support payments ..................................................................................  12  7.2 Payments to be made to duly entitled persons ..........................................................  13  7.3 Officials authorized to make payments.....................................................................  13 
 7.4 Determination of rates of remuneration 
    and reimbursement...................................................................................................  13  7.5 Advance and progress payments...............................................................................  13  7.6 Time-limits for payments ..........................................................................................  14  7.7 Currencies of ac counting and currency  
    conversion rates .......................................................................................................  14 
 7.8 Responsibility for payments......................................................................................  15 
 7.9  Ex gratia payments....................................................................................................  15 
 
VIII. Management of Funds  
  8.1 Treasury management................................................................................................  15 
 8.2 Monies to be deposited in banks ...............................................................................  16  8.3 Operation of bank accounts.......................................................................................  16 
 8.4 Investment of funds ...................................................................................................  16  8.5 Loss of cash - cases of fraud......................................................................................  16  8.6 Exchange of currencies..............................................................................................  16 
 
IX. Designation of Cashi ers and Advances of Funds  
 
 9.1 Designation of cashiers..............................................................................................  16  9.2 Establishment of operati ng cash advances (including 
    Petty Cash advances) ...............................................................................................  16 
 9.3 Accounting for opera ting cash advances...................................................................  17 
 9.4 Other cash advances ..................................................................................................  17  
X. Procurement  
  10.1 Authorized contra cting officials................................................................................  17 
 10.2 Contracts Committee ................................................................................................  17  10.3 Competitive bidding and advertising ........................................................................  17  10.4 Exceptions to adve rtising require ments ....................................................................  18 
 10.5 Awarding of contracts................................................................................................  18 
 10.6 Purchase to be made in writing .................................................................................  18 
 10.7 Written findings .........................................................................................................  18 
  WT/L/157/Rev.1 
 Page 5 
 
 
  XI. Property  
 
 11.1 Property records.........................................................................................................  19 
 11.2 Physical inventories ...................................................................................................  1 9 
 11.3 Use of property or services of the WTO ...................................................................  19 
 11.4 Treatment of cases of loss of assets, fraud or  
    unrecoverable debt...................................................................................................  19  11.5 Accounting for donated property ..............................................................................  20 
 11.6 Disposal of surplus property......................................................................................  20  XII. The Accounts  
 
 12.1 Responsibility for maintaining the accounts.............................................................  20  12.2 Principal accounts......................................................................................................  20 
 12.3 Subsidiary accounts ...................................................................................................  20  
 
 
Appendix 
 
  Decision of the General Council of 11 July 1995 (WT/GCM/5) on procedure  
  for decisions having financial implications  which may be taken by WTO Bodies .........................  21 
 
 WT/L/157/Rev.1 
Page 6  
 
  I. AUTHORITY AND APPLICABILITY  
 
1.1 Reference
 
  These Rules are established pursuant to Regulati on 3 of the Financial Regulations of the World 
Trade Organization (WTO). 
 1.2 Applicability
 
  These Rules shall apply to the regular budget of  the WTO and to all other funds placed at the 
disposal of the WTO, except in so far as the applicab ility of special regulations and rules for such other 
funds is recognised by the Deputy Dire ctor-General in charge of Finance. 
 1.3 Responsibility for implementation
 
 
 The Deputy Director-General in charge of Financ e is responsible to the Director-General for the 
application and implementati on of these Rules.  He may delegate any specific authority vested in him 
pursuant to these Rules, as appropria te, to other officials of the WTO. 
 1.4 Additional instructions to be issued by the Deputy Director-General in charge of Finance
 
 
 Within the framework of the Financial Regu lations and these Rules, the Deputy Director-
General in charge of Finance may issue such additional instructions or establish such procedures as shall be necessary to ensure effective internal financia l control, sound administ ration of funds, and the 
exercise of economy.  No changes in such instructions  or procedures shall be made without the approval 
of the Deputy Director-General in charge of Finance. 
 
1.5 Responsibilities of th e Director of Finance and General Services Division
 
  The Director of the Finance and General Se rvices Division is responsible to the Deputy 
Director-General in charge of Finance for the perfor mance and/or supervision of  all budgetary, financial 
and accounting operations.   
 
1.6 Approaches outside the WTO
 
  No approach shall be made outside the WTO or  within the WTO with a view to obtaining funds 
or resources, or exemptions from existing financial re gulations, rules or provisions of the WTO, except 
with the prior written authorization of the Director-General, the Deputy Director-General in charge of 
Finance or the Director of Financ e and General Services Division. 
 1.7 Responsibility for funds  from external sources
 
  No official may accept respons ibility for the handling or management of funds belonging to a 
government, or to any other body of an  official or quasi-offi cial nature with which he is associated by 
reason of his status as an WTO of ficial, unless he has been specifica lly authorized in advance to do so 
on the basis of a decision by the Director-General.   WT/L/157/Rev.1 
 Page 7 
 
 
  II. PREPARATION OF THE BUDGET ESTIMATES  
 
2.1 Form of the budget estimates  
  The budget estimates of the WTO shall be drawn up as prescribed in Regulations 5 to 9 of the 
Financial Regulations.  Presentation of the budget estimates shall be both in an overall form and, to the 
extent possible, broken down according to  divisions, i.e. in a functional format. 
 2.2 Responsibility for the prep aration of the budget estimates
 
 
 The Deputy Director-General in charge of Finance, with the assistance of the Director of 
Finance and General Services  Division, shall be responsible to the Director-General for the provision of 
advice on budget and financial policy and for the prepar ation of the estimates of income and expenditure 
included in the budget proposals and budget documents  for submission to the Committee on Budget, 
Finance and Administration and to the General Counc il.  For this purpose he shall establish such 
procedures, criteria and deadlines as may be required to assure th e timely presentation of sound and 
realistic budget estimates conformi ng to the Financial Regulations.  
 2.3 Furnishing of cost estimates
 
  The Finance and General Services Division shall be responsible for the pr eparation of all cost 
estimates that may be re quired in connection with the activities of the WTO including estimates of the 
cost of all projects, trust funds, meetings, staff salaries and missions .  No official shall issue cost 
estimates for use outside the WTO without prior written clearance of the estimates by the Director of the 
Finance and General Services Division. 
 
 
III. COLLECTION OF CONTRIBUTIONS  
AND OTHER INCOME  
 
3.1 Responsibility for collection of contributions
 
 
 The Director of the Finance and General Servic es Division shall be responsible to the Deputy 
Director-General in charge of Finance for co llecting and accounting for contributions due from 
Members, as prescribed in Regulations 12 to 17 of the Financial Regulations. 
 3.2 Accounting for receipts
 
 
 (a) All receipts shall be brought to account  with the shortest delay possible.  Assessed 
contributions received by the WTO shall be a ccounted as of the date of receipt in the 
WTO Bank Account. 
  (b) Voluntary contributions, gifts or donatio ns, which directly or indirectly involve 
additional financial liability for the WTO, sha ll be kept in a suspense account until their 
acceptance by the Committee on Budget, Finance and Administration has been authorized in accordance with Regul ation 19 of the Financial Regulations. 
 WT/L/157/Rev.1 
Page 8  
 
  3.3 Miscellaneous income
 
  Miscellaneous income consists of the followi ng categories of receipts  accruing to the WTO: 
  (a) receipts from the sale of publications and the provision of services; 
 (b) the difference between gains and losses on exchange; 
 (c) savings on previous ye ar's outstanding obligations; 
 (d) overhead on Trust Funds;  (e) receipts from the rental of  meeting rooms and office space; 
 (f) assessments from  Observer Countries; 
 (g) receipts of interest other than that requi red to be credited to the Working Capital Fund 
in accordance with Regulation 33 or to be cr edited to Members in respect of the Early 
Payment Encouragement Scheme; 
 (h) refunds of expenditure of prior financial periods;  (i) WTO  cheques remaining uncashed for a period of twelve months after the date drawn;  
 (j) other miscella neous cash receipts. 
 3.4 Proceeds from the sale of  equipment, discounts or rebates
 
  Proceeds from the sale of equipment may be set off against the purchase of replacements provided that the sale and purchase occur during the same financial period;  otherwise the proceeds shall 
be treated as miscellaneous income.  Proceeds fro m discounts or rebates shall be credited to the 
corresponding budgetary account in order to  offset expenditures of same nature. 
 3.5 Acceptance of monies by officials
 
 
 (a) Wherever possible payments to the credit of the WTO shall be directed to a WTO bank 
account. 
  (b) The Deputy Director-General in charge of Finance shall designate those officials who 
are authorised to accept money on behalf of the WTO and to issue official receipts.  
 
 (c) Any other official receiving money on beha lf of the WTO must immediately remit it in 
full to an official authorized to accept money or, where this is not possible, deposit it in 
a WTO bank account.  Full details of such de posits shall be sent  immediately to the 
Director of Finance and Ge neral Services Division. 
 
3.6 Furnishing of official receipts
 
  An official receipt shall be given  for all monies received either in cash or by cheque.  Receipts 
shall be drawn up in duplicate, and a copy of the original shall be retained.  
  
IV. APPROPRIATIONS AND ALLOCATIONS  
 
4.1 Responsibility of the Deputy Director-General  in charge of Finance for the implementation of 
the approved budget  
 
 The Deputy Director-General in charge of Finance is responsible to the Director-General for 
ensuring that the expenditure of the WTO under the re gular budget remains within  the appropriations as 
voted and that such appropriations are used only for the purposes approved by the General Council. 
  WT/L/157/Rev.1 
 Page 9 
 
 
  4.2 Responsibility of the Director of Fina nce and General Services Division to allocate 
appropriations in accordance  with the Functional Budget  
  The Director of Finance and General Services Division shall inform in writing the Directors of the amounts allocated to their divisions in accordance  with the Functional Budget with the constraints 
limiting the use of these appropriations. 
 4.3 Periodic review of the expenditure position
 
  (a) The Finance and Genera l Services Division shall monitor the extent to which 
allocations are used and prepare reports for the Director-General on amounts currently 
allocated, obligated and expended, and expected future expenditure, under the 
allocations. 
  (b) Divisional Directors shall be informed regularly of the expend itures and unliquidated 
obligations recorded against their own allocations provided under the Functional 
Budget. 
 4.4 Transfers between items within the approved budget
 
  Transfers between sections of the expenditure  budget shall be handled through the internal 
control system, subject to a report submitted by the Se cretariat to the General Council for approval at the 
end of the financial period.     
V. CONTROL OF OBLIGATIONS  
 
5.1 Obligations to be incurred only by duly authorized officials
 
  No contract shall be concluded and no order shal l be placed on behalf of the WTO except by an 
official to whom a formal authority to incur such obligations has been delegated by the Deputy Director-
General in charge of Finance. 
 
5.2 Proposals or drafts having fina ncial and/or budgetary implications
* 
  (a) Any draft paper for the General Council whic h contains a proposal likely to have direct 
or indirect financial or budgetary implications  shall be routed by th e originating unit, or 
the officer to whom it reports, to the Direct or of Finance and General Services Division 
for financial evaluation and clearance before  being submitted to the Deputy Director-
General in charge of Finance. 
  (b) Advance clearance and financial evaluation must be obtained before seeking the final 
approval on any document or communication having a direct or indirect financial 
implication. 
    
____________ 
 * See Also Appendix. WT/L/157/Rev.1 
Page 10  
 
  5.3 Control of obligations
 
  (a) All contracts, a ppointments, mission orde rs, purchase orders, or other documents by 
which a financial obligation is to be incurred on behalf of the WTO must be submitted in advance to the Finance and General Serv ices Division for fina ncial clearance under 
Regulation 42 of the Financial Regulations  except as provided in subparagraph (d) 
below. 
  (b) An authorised official of the Finance and General Services Di vision shall review the 
obligating documents submitted in the light of  the applicable financial regulations and 
rules, the approved budget, and the available ba lances in the respecti ve allocations.  He 
shall also assure himself that the principl es of sound economy are maintained.  If the 
obligating document conforms with the above requirements, it shall be certified by an 
authorised official of the Finance and Genera l Services Division that  funds are available 
and have been reserved to meet the resulti ng expenditure.  Approved obligations shall 
be recorded by the Finance a nd General Services Division. 
  (c) No obligating document shall be released  outside the WTO without the certification by 
an authorised official of the Finance a nd General Services Division that funds are 
available. 
 
 (d) An authorised official of the Finance and General Services Division may issue lump-
sum certificates to cover minor routine purc hases.  At the end of the period for which 
the certificate is issued, it sha ll be returned together with a record of the obligation 
incurred against it, and shall be supported  by copies of the corresponding obligating 
documents.  A lump-sum certificate shall be recorded in the accounts as a valid 
obligation, which shall be adjusted to actual obligations when the certificate is returned. 
 5.4 Obligations to be incurred in conformity with the budget
 
  Obligations shall be incurred onl y in strict conformity with th e relevant budget.  All obligating 
documents submitted for financial clearance shall be  accompanied by an indication of the appropriate 
accounting classifica tion.  In case of doubt, the correct classi fication against which any charge is to be 
made shall be determined by the Chief of the Budget and Control Section. 
 5.5 Objection to proposed obligations
 
 
 If the Director of Finance and General Serv ices Division cannot approve an obligating 
document submitted for certification he shall state his objections in writing.  If the requesting official does not agree with the objection, the matter shall be referred to the Deputy Director-General in charge 
of Finance for decision.  5.6 Adjustments of obligations
 
 
 If part or all of an amount recorded as an obligation is no longer required for the purpose 
originally foreseen the necessary adju stment shall be made immediately. 
   WT/L/157/Rev.1 
 Page 11 
 
 
  VI. PRESENTATION AND AUDIT OF CLAIMS  
  
6.1 Payments to be made on the basis of claims  
  (a) Except for the payment of salaries, wa ges, regularly established allowances and 
amounts due under external collaboration cont racts with individuals, no payment shall 
be effected unless cl aimed by the payee.  Payments due under external collaboration 
contracts with individuals shall be made on the basis of payment requests submitted by 
authorised officials;  such requests shall be treated in the same way as claims. 
 
 (b) For each claim submitted, the claimant shall certify that the claim is fair and correct and 
that payment has not yet been received. 
  (c) Where special forms for claims exist, claims must be presented on these forms.  
6.2 Claims to be supported by a copy of the order
 
  Claims submitted for payment mu st normally be supported by a copy of the relevant order 
showing, where applicable, the registration number of the corresponding obligation. 
 6.3 Time-limits for the presentation of claims
 
 
 (a) Officials authorised to incur obligati ons shall ensure the presentation, within a 
reasonable period, of all claims payable. 
  (b) Particular care shall be exercised to prevent arrear claims being made after the close of 
the financial period. 
  (c) Claims in respect of officially authoris ed travel shall be submitted within one month 
after such travel has been completed. 
   (d) Claims for overtime should be submitted w ithin one week after such overtime has been 
completed. 
  (e) Claims involving discounts fo r prompt payment shall be flagged and shall be processed 
with the minimum delay possible. 
 
6.4 Audit of claims
 
  (a) The Certifying Officer shall subject each  claim to careful scrutiny before authorising 
payment, and shall maintain records of all claims processed for payment. 
  (b) No claim shall be authorised for payment unless its validity has been clearly 
established. 
  (c) Officials authorised to incur obligations shall supply the Certifying Officer with any 
information required in connecti on with the audit of claims. 
 WT/L/157/Rev.1 
Page 12  
 
  6.5 Claims to be accompanied by receiving reports
 
  (a) Claims based on the furnishing of goods or se rvices shall be submitted to the Certifying 
Officer together with a certified receiving report stating whether the goods or services 
have been furnished in accordance with the specifications of the order, and whether the 
claim is administratively approve d for payment.  In addition, the receiving officer shall 
certify that the goods received have been entere d in the register of stocks or inventory. 
  (b) The Deputy Director-General in charge of Finance may waive the requirement of 
receiving reports in the case of standard services such as publ ic utilities, etc. 
 
 (c) For goods delivered to a place outside  Geneva, payment may be authorized upon 
receipt of documents provided that the goods were dispatched appropriately insured to 
their destination.  A duly executed receivi ng report must be forwarded to the Finance 
and General Services Division i mmediately upon receipt of goods. 
 
 (d) In the case of Rule 6.5(c) the official forwarding the claim shall certify that the goods 
were dispatched with appropriate insurance coverage. 
 6.6 Safeguards
 
 
 (a) Officials authorised to incur obligatio ns and the Certifying Officer shall take all 
necessary steps to avoid duplicate payments of claims. 
  (b) Except where this is una voidable, no official shall be assigned simultaneously any two 
of the following functions: purchasing and/or  acceptance of goods or services, auditing 
or disbursing. 
 6.7 Objection to a claim
 
  (a) When the Director of Finance and General Services Division objects to the payment of 
a claim in full or in part, he shall communicate his objection  to the official presenting 
the claim.  If the of ficial does not agree with the ob jection, he may appeal through 
proper channels to the Deputy Director-General in charge of Finance. 
  (b) If the Deputy Director-General in charge of Finance decides that a claim is to be paid 
notwithstanding an objection by the Director of Finance and General Services Division, 
his decision shall be reported to the external auditor. 
  
VII. PAYMENTS  
 
7.1 Vouchers to support payments
 
 
 (a) No payments shall be effected without satisfactory  supporting documents.  Except for 
payments made from cash advances these doc uments must show that the payment has 
been approved by a duly authorised Certifying Officer. 
 
 (b) Whenever claims are received as a result of a written order by the WTO, a copy of the 
order shall be included with the supporting  document. 
  (c) No verbal authority shall be  accepted for making any payments. 
  WT/L/157/Rev.1 
 Page 13 
 
 
  7.2 Payments to be made to duly entitled persons  
  (a) Payments shall be made only to the pers ons to whom they are due, or to their legal 
representatives.  A payment shall normally be   made to a bank account in the name of 
the person to whom payment is due. 
 
 (b) The Director of Finance and General Services Division may refuse to effect payment of 
any salary, allowance or other payment to a third party claiming the payment on behalf of the person to whom it is due. If payments are made to such third party or a legal representative, the nature of the authorit y under which such payment has been made 
shall be stated on the supporting document. The cession or other authority shall either 
be attached to the supporting document, or the Director of Finance and General 
Services Division shall certify on the suppor ting document that a sufficient authority 
was produced. 
 
7.3 Officials authorized to make payments
 
  All payments shall be made by authorised officials of the Finance and General Services Division after approval by the Certifyi ng Officer, except for payments made by: 
  (a) members of the staff to whom cash is advanced for the purposes of the WTO; 
 
 (b) representatives of the United Nations Development Programme when acting as agents 
for the WTO; 
  (c) any other person specifically designated  for this purpose by the Deputy Director-
General in charge of Finance. 
 7.4 Determination of rates of remuneration and reimbursement
 
  (a) Salaries and wages shall be paid in accor dance with the relevant provisions of the Staff 
Regulation, or other applicable rules.  All amounts deducted from salaries shall be paid 
as soon as practicable to the accounts to which these amounts are due.  Contributions to 
the pension fund shall be transferred before  the end of the month for which they are 
due. 
  (b) Reimbursement for travel expenses and payment of any  allowances to members of the 
staff shall be effected in accordance with the Staff Regulations or other applicable rules. 
 7.5 Advance and progress payments
 
  The Director of Finance and General Services Division may authorise the inclusion in a contract of provision for such advance payments or partial pa yments for work in progress as may be required by 
normal commercial practice and the interests of the WTO.  Except for cases where specific provision of 
this nature has been included in a contract with the approval of the Director of Finance and General Services Division and for cases covered by Rules 6.5( c) and 6.5(d), payment may be made only after the 
services or goods have been received.  Claims for advance and progress payments shall be presented in 
accordance with Rule 6.5. WT/L/157/Rev.1 
Page 14  
 
  7.6 Time-limits for payments
 
  (a) Once it has been ascertained that a payment is in order, it shall be made with reasonable 
dispatch. 
 
 (b) Proper attention shall be paid to claims  offering a cash discount for prompt payment. 
  (c) Payments made under the regular budget after the date set for the closing of the 
accounts of a given financial period are not al lowed as a charge against that financial 
period unless an outstanding obligation duly documented has been established. 
 
7.7 Currencies of accounting and currency conversion rates
 
  (a) The accounts of the WTO shall be maintained in Swiss francs ; however subsidiary 
accounting records may be mainta ined in other currencies.  
 
 (b) The conversion rates used for internal accounting purposes, call ed the WTO rate of 
exchange, shall be set by the Deputy Director-General in charge of Finance. 
  (c) Contributions received in a currency othe r than the Swiss franc shall be converted and 
credited at the bank rate of exchange at the time of receipt indicated by the value date 
and recorded at the WTO rate of exchange.  Differences in exchange shall be accounted 
for under (j) below. 
  (d) Salaries shall be paid in Swiss francs. The currencies in which the allowances of WTO 
officials may be paid (whatever the currency in terms of which the entitlement is 
expressed) shall be es tablished by the Deputy Director-General in charge of Finance. 
  (e) When allowances are paid in a currency ot her than that in which they are expressed, the 
rate of exchange used for the payment shall  be the WTO rate of exchange applicable at 
the time of payment. 
 
 (f) Advances relating to salaries, allowances (except with regard to Education Grants) and 
expenses of officials for which the entitlemen t is expressed in term s of a currency other 
than the Swiss franc, shall be recorded in Swiss francs at the WTO rate of exchange applicable at the time of the advance. 
 
 (g) Education Grants: 
 
(i)  Advances relating to Educ ation Grants and made in US dollars shall be recorded in 
Swiss francs at the WTO rate of exchange;   
 (ii)  except for (g) (i) above, all other advances made for Education Grants in 
currencies other than the Swiss franc shall be recorded in Swiss francs at the bank 
rate of exchange applicable at the time of the advances;   
 (iii) final settlement will be calculated as  to effect full recovery of the amount 
recorded. 
  WT/L/157/Rev.1 
 Page 15 
 
 
   (h) When expenses incurred by officials or other persons to whom a payment is due from 
the WTO are reimbursed by the WTO in a currency other than that in which the expenses were incurred, the conversion rate used for the purpose of the reimbursement shall be the WTO rate of exchange applicable on the date on which the expenses were incurred, except in the following circumstances:   
 
(i) in cases of trust funds where the coordinator had to purchase the currency himself 
at a given date and produces a bank s lip showing the rate at which it was 
obtained, the conversion shall be made at that rate;   
 
(ii) in cases of trust funds where a relate d advance has been made in a currency other 
than that in which the expenses are reimbursed by the WTO, the expenses incurred up to the amount of the advanc e shall be converted  at the rate of 
exchange at which the advance was secured. 
 
 (i) Where a third currency is involved, the local currency obtained by the conversion of the 
second currency shall be taken into account  at the WTO rate of exchange and any 
difference as a loss or gain on exchange.  Where an exchange rate for a third currency 
has not been established, it shall be calcu lated by applying the cross-rate with the 
second currency. 
 
 (j) Exchange gains and losses resulting from the revaluation of regular budget assets and 
liabilities held in currencies other than the Swiss franc shall be accounted under 
miscellaneous income. 
 7.8 Responsibility for payments
 
 
 An instruction from a superior official shall not relieve the Finance and General Services Division from responsibility for an irregular paym ent, unless the irregularity was pointed out by the 
Finance and General Division to the Director-General  in writing before the payment was made, and the 
objection overruled.  Any such overruling shall be given in writing and shall be reported to the external auditor. 
 
7.9 Ex gratia  payments
 
  The Director-General may, on an exceptional basis, authorise such ex gratia  payments as he 
deems to be necessary in the interests of the WTO.  A statement of such payments shall be submitted to 
the external auditor with the relevant accounts. 
 
 
VIII. MANAGEMENT OF FUNDS  
 
8.1 Treasury management
 
 
 The Director of Finance and General Services  Division shall be responsible to the Deputy 
Director-General in charge of Finance for the treasury management of all funds in the custody of the Director-General.  WT/L/157/Rev.1 
Page 16  
 
  8.2 Monies to be deposited in banks
 
  All monies not immediat ely required shall be placed in non- speculative accounts in such bank 
or banks of internationally recogni sed standing as the Deputy Director -General in charge of Finance  
may designate.  
 
8.3 Operation of bank accounts
 
  Bank accounts shall normally be operated jointly by two or more  officials to be designated by 
the Director-General.  
 
8.4 Investment of funds
 
  (a) Funds available under the regular budge t and the Working Capital Fund may be 
invested in accordance with Regulation 34 of the Financial Regulations. 
 
 (b) Other funds for which the Director-General is responsible shall be invested in 
accordance with any special regulations in force for such funds, or in the absence 
thereof, in similar manner to funds  available under the regular budget. 
 8.5 Loss of cash - cases of fraud
 
 
 Any loss of cash or negotiabl e instruments and any case of fraud, presumption of fraud or 
attempted fraud must be reported at once to the Depu ty Director-General in charge of Finance who will 
ensure that appropriate follow-up action is  taken in conformity with Rule 11.4. 
 
8.6 Exchange of currencies  
  Officials responsible for the operation of WT O bank accounts, or for holding WTO cash or 
negotiable instruments, are not aut horised to exchange one currency for another except to the extent 
required for the transaction of official business.  
 
IX. DESIGNATION OF CASHIERS AND ADVANCES OF FUNDS  
 
9.1 Designation of cashiers
 
 
 Officials who are to perform the function of ca shier shall be designated by the Director of 
Finance and General Servic es Division. The exact duties of each cashier shall be notified to him in 
writing by the designating official.  9.2 Establishment of operating cash adva nces (including Petty Cash advances)
 
 
 Operating cash advances (including petty cash a dvances) may be made to officials designated 
by the Director of Finance and General Services Division. The acc ounts for operating cash advances 
shall be maintained, normally on an imprest basis, in a form approved by the Director of Finance and General Services Division.  The person issuing an advance shall sp ecify in writing the amount of the 
advance and the purposes for which it may be used.  The amount of the advance shall be held to the 
minimum compatible with working requirements.  
  WT/L/157/Rev.1 
 Page 17 
 
 
  9.3 Accounting for operating cash advances  
  (a) Officials to whom operating cash advances  are issued under Rule 9.2 shall make use of 
such advances only for the purpose for which the advance was authorised and shall be 
personally responsible therefore. 
 
 (b) They shall render accounting as stipulated when the advance is made;  such accounting, 
unless otherwise specified, sh all be made not less frequently than once each month.  
They shall be in a position at all times to a ccount for the advances.  Cash and negotiable 
instruments shall be kept in safe custody. 
 
 (c) Operating cash advances shall be replenished upon presentation of a claim for 
replenishment.  These claims shall be made in the form prescribed by the Director of 
Finance and General Services Division or the person issuing the advance and shall list 
each expenditure made in sufficient detail to permit a proper classification and scrutiny 
of the expenses.  Except as may have been specified when the advance was issued, each 
expenditure listed must be s upported by a proper receipt. 
 9.4 Other cash advances
 
  In addition to the operating cash advances refe rred to in Rules 9.2 and 9.3, the Director of 
Finance and General Services Division may make such other cash advances as may be permitted by the 
Staff Regulations or administrative instructions.  
 
 
X. PROCUREMENT  
 
10.1 Authorized contracting officials
 
  Contracts for the purchase of goods  and services shall be entered into on behalf of the WTO by 
officials duly authorised by the Deputy Director-General in charge of Finance.  
10.2 Contracts Committee
 
  A Contracts Committee chaired by the Director of Finance and General Services Division will 
meet to consider purchases falling unde r the terms of Rule 10.3.  A repor t will be made for each meeting 
of the Committee. 
 
10.3 Competitive bidding and advertising
 
  (a) Except as provided in Rules 10.3(c) and 10.4, whenever a single purchase of goods or 
services is likely to exceed 50,000 Swiss franc s or the equivalent, te nders from at least 
three suppliers shall be sought by invitati ons to bid or by newspaper advertisement. 
 
 (b) If a single purchase of goods or services  is not likely to exceed 50,000 Swiss francs or 
the equivalent, such tenders may be sought;  alternatively, an assessment of competitive  
prices shall be made whenever possible. 
 WT/L/157/Rev.1 
Page 18  
 
   (c) Rule 10.3(a) shall not apply to employment contracts or to external collaboration 
contracts with individuals or for supply of th e services of a particular individual.  The 
financial criteria and procedur es applicable to such contracts shall be approved by the 
Deputy Director-General in charge of Finance. 
 
10.4 Exceptions to advertising requirements
 
  The Deputy Director-General in charge of Finance may waive the application of the Rule 10.3(a) in cases where he decides in the in terest of the WTO to do so, and in particular: 
 
 (a) when the prices or rates are fixed pursuant to legislati on or by public regulatory bodies 
or when for other reasons there is no co mpetitive market for the goods or services 
required; 
  (b) when the purchases fall within an approved  plan of standardisation of goods or supplies 
which renders competit ion impracticable; 
  (c) when the exigencies of the service do not permit the delay attendant upon the issue of 
invitations to bid; 
  (d) when the mandatory use of specific currencies renders this impracticable; 
 
 (e) when competitive bidding has failed to give satisfactory results;   (f) when the contract covers  research work to be carr ied out by a non-profit-making 
institution; 
  
 A record shall be maintained of all cases in which the application of Rule 10.3(a) has been 
waived.     10.5 Awarding of contracts
 
 
 Wherever tenders have been sought or an assessment of comp etitive prices has been made, 
contracts shall normally  be awarded to the supplier quoting the lowest price for an acceptable offer.  
However, when the interests of the WTO so require, any or all of the tenders may be rejected.  Where a 
tender is rejected, under the provisions of this rule , the reasons for such rejection shall be recorded.  
 
10.6 Purchase to be made in writing  
  (a) All purchases or contracts shall be made in writing, exce pt for direct cash purchases 
made in accordance with Rule 9.2. 
  (b) Where for any reason imme diate cash payment cannot be made for goods or services 
ordered verbally, the order must be confirmed in writing without delay.  
 10.7 Written findings
 
  Each determination or decision required of an authorised purchas ing official by the provisions 
of these rules shall be supported by the written findi ngs of such official.  The written findings shall be 
placed in the appropriate files.   WT/L/157/Rev.1 
 Page 19 
 
 
  XI. PROPERTY 
 
11.1 Property records  
  (a) Adequate records shall be maintained of  real property, non-expendable and expendable 
equipment, supplies and materials received, is sued, sold or otherwise disposed of, and 
remaining on hand.  The Deputy Director-Gener al in charge of Finance shall establish 
the nature and extent of the records to be  maintained for the purposes of this Rule. 
  (b) The records maintained in respect of su pplies and property accoun ts shall in all cases 
indicate the official accountable for each item.  
  (c) Control accounts shall be maintained re cording the total value of capital assets 
purchased and sold, or otherw ise acquired and disposed of. 
 
11.2 Physical inventories
 
  Physical inventories shall be taken of all suppl ies, equipment or other property of the WTO, or 
entrusted to the charge of the WTO, at such intervals as may be deemed necessary by the Deputy Director-General in charge of Finance to ensure adequate control over such property.  
11.3 Use of property or services of the WTO
 
  (a) The property or the services of the WTO shall not be used for private purposes except 
where specifically authorised in the interest  of the WTO by the Di rector of Finance and 
General Services Division. 
 
 (b) The Director of Finance and General Services Division shall determine the amounts 
due to the WTO for the use of its property or services. 
  (c) Goods or services of the WTO may be provided to Members, the United Nations, other 
specialised agencies, or othe r organisations on such term s and conditions as may be 
appropriate in each case. 
 11.4 Treatment of cases of loss of  assets, fraud or unrecoverable debt
 
  (a) The Director of Finance and General Serv ices Division may authorise losses of cash, 
stores or other assets not exceeding the equiva lent of 5,000 Swiss francs in each case to 
be written off if in his judgement the cost  of recuperating the loss would exceed the 
amount to be written off, or if it is very un likely that action to recuperate the loss would 
be successful. The Deputy Director-General in charge of Finance may authorize the writing-off of losses exceeding th e equivalent of 5,000 Swiss francs. 
 
 (b) All losses which are written off shall be in cluded in the annual financial statements and 
submitted to the external auditor with the relevant accounts. 
  (c) The Deputy Director-General in charge of  Finance shall fix the responsibility for the 
loss, if any, attaching to any official of the WTO.  Such official may be required to 
reimburse the loss either partially or in full,  irrespective of whether the loss is covered 
by insurance or not. WT/L/157/Rev.1 
Page 20  
 
   (d) Any case of fraud, presumption of frau d or attempted fraud must be reported to the 
Director-General through the Deputy Dire ctor-General in charge of Finance. 
  (e) Amounts written off and subs equently recovered after the close of the financial period 
in which the writing-off occurred sha ll be treated as miscellaneous income. 
 
11.5 Accounting for donated property
 
  Goods received and accepted by the WTO as gifts or entrusted to the charge of the WTO, shall 
be accounted for in the same manner  as other goods acquired by the WTO. 
 
11.6 Disposal of surplus property
 
  Surplus property having residual commercial value shall be disposed of by sale after 
competitive bidding unless the Deputy Director-General in  charge of Finance in the interest of the WTO 
authorises a different method of disposal. 
  
XII. THE ACCOUNTS  
 
12.1 Responsibility for maintaining the accounts
 
 
 The accounts shall be maintained by the Finance and General Services Divi sion as prescribed in 
Chapter IX of the Financial Regulations.  12.2 Principal accounts
 
 
 The principal account s shall consist of: 
  (i) Statement of budgetary expenditure;   (ii) Income and expenditure account; 
 
 (iii) Surplus account;   (iv) Statement of assets and liabilities;  
 (v) Separate accounts for the Working Cap ital Fund and for any trust funds or special 
accounts. 
 12.3 Subsidiary accounts
 
  The Director of Finance and General Services Division may arrange for subsidiary accounts to 
be maintained in other services as  required by day-to-day operations.  WT/L/157/Rev.1 
 Page 21 
 
 
   
Appendix  
 
  
Decision of the General Counc il of 11 July 1995 (WT/GCM/5) 
on the procedure for decisions having financial implications 
which may be taken by WTO Bodies 
 
 
 
 WTO Bodies shall, before a de cision is taken which may have fi nancial implications, inform the 
Chairman of the Committee on Budget, Finance and Administration, and identify, in so far as possible, 
areas in their sphere of competence where compensatory savings could be achieved.  On the basis of the analysis made by the Finance and General Services Division the Committee will then examine the 
financial implications and proposed funding, incl uding the identification of existing WTO activities 
where savings could be achieved for the first star t-up year and for the following on-going year(s), and 
forward such information to the General Council.  Wi th full knowledge of the financial implications and 
proposed funding, the General Council will then take a final decision. 
  
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