WORLD TRADE  
ORGANIZATION  WT/BFA/W/143 
29 November 2006 
 
 (06-5738) 
  
  
 
   
DIRECTOR GENERAL'S REPORT ON EXTRA-BUDGETARY FUNDS  
 
FOR 2005 
 
AND REPORT OF THE EXTERNAL AUDITOR THEREON 
 WT/BFA/W/143 
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  TABLE OF CONTENTS 
 
 
Page
 
EXTRA-BUDGETARY FUNDS ENTRUSTED TO THE WTO ......................................................3  
Description and Activity in 2005............................................................................................... ............3  
T0006  – Netherlands – Trust Fund For Trainees ................................................................................3  
TNL05  – Netherlands – Trainee Programm E......................................................................................3  
TBE02  – Belgium – Global Fund – Selected African Countries ........................................................3  
TDDA3  and TDDA4  – Doha Development Agenda Global Trust Fund ...........................................4  
TES05  and  TES06  – Spain – Global Fund – Latin America ..............................................................5  
TEU02  European Commission – Labelling Event ..............................................................................5  
TFI02  – Finland – Global Fund  - LDC S...............................................................................................5  
TFI03  – Finland – Global Fund -  LDC .................................................................................................6  
TFR02  – France – Global Fund – African Countries .........................................................................6  
TFR03  – France – STDF on SPS ...........................................................................................................6  
TIF01  – UNDP  – Integrated Framework – Outreach Activities ........................................................6  
TIF02  – Integrated Framework – Programme Implementation Unit ...............................................7  
TIMM1  – Internships for Selected Members' Missions in Geneva ...................................................7  
TJIT2  - JITAP  II............................................................................................................................... ....7 
TMI05  and  TMI06  – LDC S Participation in the Ministerial Conference ..........................................8  
TNO04  – Norway  – NGO  Symposium ..................................................................................................8  
TNZ03  - New Zealand – Global Fund – Asia-Pacific ..........................................................................8  
TRC01,  TRC02,  TRC03  and  TRC04  – ITC/WTO/EU  – Reference Centers .....................................8  
TTRTA  – Strategic Review of Trade Related Technical Assistance Activities ................................9  
TUS03  – United States –  SPS.................................................................................................................9  
TWB01  – STDF  on SPS..........................................................................................................................9  
EPSF  – Programme Support Fund .......................................................................................................9  
ES963  – 1996  Surplus – Legal Expert Services ..................................................................................10  
T0013  – Independent Entity -Preshipment Inspection – Deposits ...................................................10  
TPS01  – Preshipment Inspection – Review Alcatel  / SGS .................................................................10  
CONSOLIDATED FI NANCIAL STATEMENTS AS AT 31 DECEMBER 2005.........................11  
Statement 1 - Consolidated Balance Sheet As At 31 December 2005 ..............................................12  
Statement 2 - Consolidated Profit And Loss Statement As At 31 December 2005 ........................14  
EXTRA-BUDGETARY FUNDS - FINANCIAL  SITUATION OVERVIEW - 2005 ....................16  
Statement 3 - Extra-Budgetary Funds - Fi nancial Situation Overview – 2005 ..............................17  
Chart 1 - Regional Distribution of Expenditure 2005.......................................................................18  
Chart 2 - Expenditure Distribution by Subject 2005........................................................................18 
REPORT OF THE EXTERNAL AUDITOR ON  THE EXTRA–Budgetary Funds of the 
WORLD TRADE ORGANIZATION FOR THE FINANCIAL PERIOD 2005............................19 
ANNEX - STATEMENT OF SIGNIFIC ANT ACCOUNTING POLICIES ..................................20  WT/BFA/W/143 
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  EXTRA-BUDGETARY FUNDS ENTRUSTED TO THE WTO 
 
Description and Activity in 2005  
  T0006 – Netherlands – Trust Fund for Trainees  
1. Since 1998, the Dutch Government has financed the employment of young graduates from 
least developed countries. 
2. The aim of the programme is to assist in the economic and social deve lopment of developing 
countries in areas related to trade policy by pr oviding graduates from such countries, who have 
limited working experience with the opportunity to learn about development re lated matters dealt with 
within WTO. 
3. The trainees are appointed at grade 7 and work  under the guidance of staff members of the 
WTO for a period of fourteen months that may be extended to two years. 
4. In 2005, four of the trainees selected in the last round for 2004-2005 completed their 
assignments.  Three of the four trainees worked  in the following divisions: Development , Trade 
Policies Review, Agriculture and Commodities.  The forth trainee worked in two divisions: External 
Relations and Intellectual Property. 
5. This programme came to an end at the end of the first quarter of 2005. 
TNL05 – Netherlands – Trainee Programme 
 6. Following the expiry of the former Netherlands Trust Fund for Trainees,  a new programme 
came into effect based on new terms and conditions .  It was launched on 1 April 2005 and will be 
completed by 31 December 2008.  
7. Netherlands Trainee Programme aims at capacity building to assist in the economic and social 
development of least developed countries, low in come countries and comparable poor and vulnerable 
economies, with particular attention given to African  countries, in areas related to trade policy.  The 
programme provides junior public officials with th e opportunity to learn about matters dealt with 
within the WTO. 
8. Trainees work under the supervision of staff me mbers of the WTO for a period of up to ten 
months and receive a monthly lump sum.  Select ed candidates are assigned specific and well defined 
tasks.  
9. They  are also assigned tasks involving their own countries and including inter alia  national 
needs assessment for technical assistance requireme nts, assisting in the preparation of Trade Policy 
Reviews, providing suppor t in the accession process. 
10. In 2005, fifteen trainees from the following count ries benefited from this Programme: Guinea,  
Mongolia, Kenya, Burundi, West Indies, Zambia, Zimbabwe, Mauritania, Uganda, Bhutan, Armenia, 
Namibia, Laos, Lebanon and Lesotho. 
TBE02 – Belgium – Global Fund – Selected African Countries 
 
11. The contribution of Belgium towards the cost of  activities contained in the Annual Technical 
Assistance and Training Plan specified the countries wh ich could benefit from this fund.  In 2005,    WT/BFA/W/143 
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  the cost for 21 participants from the designa ted beneficiary countries in various activities 
implemented under the Doha Deve lopment Agenda Global Trust Fund was met from this fund. 
Countries among the designated ones which benefite d were Mozambique, Rwanda, Ethiopia, South 
Africa, Uganda, Democratic Republic of Congo, Algeria, Cambodia, Laos, Bangladesh, Bolivia, 
Ecuador and Peru. 
TDDA3 and TDDA4 – Doha Development Agenda Global Trust Fund 
 
12. Doha Development Agenda Global Trust Fund (DDAGTF) was created in December 2001 to 
finance the comprehensive programme of activities which would focus on implementing the decisions 
taken by Ministers at the 4th WTO Ministerial Conference (document WT/MIN/(01)/DEC/1). 
13. The Global Trust Fund operates with specified  targets tied to identified benchmarks and 
closely supervised jointly by the Committees on Tr ade and Development (CTD ) and Budget, Finance 
and Administration (CBFA) to implement the tec hnical co-operation and capacity building mandate 
built into the Doha Declaration. 
14. After the 2005 Technical Assistance and Training Plan was endorsed by the Committee on 
Trade and Development, based on the recommendati ons of the  Committee on Budget, Finance and 
Administration, the General Council set the target  amount for the DDAGTF at CHF 24 million for the 
year 2005.   
15. Funds which remained available at the end of  2004 (TDDA3) permitted an immediate start to 
implementation of the TA activities for 2005. 
16. Several national and regional seminars, as we ll as regional workshops and training courses 
were undertaken in 2005. 
17. The DDAGTF financed a large majority of a ll trade-related technical assistance (TRTA) 
activities contained in the Technical Assistance a nd Training Plan for 2005, both at the national and 
the regional levels.  More than 125 national se minars and technical missions, over 120 regional 
seminars, workshops and Geneva-bas ed symposia, as well as five trade policy courses for the regions 
were financed from the Global Trust Fund.  Approx imately 25 per cent of all regional activities were 
held under WTO's partnership arrangements with ot her agencies and bodies.  A regional balance in 
the distribution of the technical assistance activitie s was maintained.  The complete qualitative and 
quantitative overview of TRTA undertaken in 2005,  which was presented by the Secretariat to the 
Membership in March 2006, is contained in  the "Annual Report on Technical Assistance and 
Training" (document WT/COMTD/W/146). 
18. The vast majority of activities, national and regional combined, specifically addressed WTO 
Agreements.  Market Access issues (NAMA, Custom s Valuation, Rules of Origin), and Services, 
were strongly in demand, followed by assistance pr ovided in support of the Trade Policy Reviews, 
Rules, Sanitary and Phytosanitary Measures, Techni cal Barriers to Trade, and Trade Facilitation.  
Other subject matters covered included: Accessi ons, Agriculture, Competition Policy, Dispute 
Settlement, Government Procuremen t, Implementation Issues, Rules, Trade and Environment, Trade 
Negotiations Skills, and Trade-related Aspects of In tellectual Property Rights.  In the delivery of 
TRTA activities in 2005, least-developed countries c ontinued to be given priority attention.  
19. Five Regional Trade Policy Courses were included in the TA Plan for 2005.  They covered 
the African French- and English-speaking regions, Asia and the Pacific, the Caribbean, as well as 
Latin America.  Each course was aimed at providi ng training to officials from least-developed and 
other developing countries over a three-month period,  in close co-operation with local institutions, 
and academics from the region.  In 2005, the first Regional Trade Policy Course organized was held  WT/BFA/W/143 
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  in Jamaica for Caribbean countries, from 24 January to 15 April.  It was followed by the course for 
Asian and Pacific economies in Hong Kong, China from 18 April to 8 July, the course for English-
speaking African countries, which took place in Win dhoek, Namibia, from 6 J une to 26 August, the 
course for French-speaking African countries in Moro cco from 4 July to 23 September, and finally the 
course for Latin American countries in Santiago de  Chile, from 5 September to 25 November 2005. 
20. Activities dedicated to Information Technology Development in 2005 included the 
establishment or upgrading of more than 20 WTO Reference Centres, the free Internet Access and 
connectivity for Least Developed Countries, several e-training and distance learning projects, as well as the further development of the IDB/CTS Internet Facility. 
21. Six-month internships for Regional Coordinato rs were funded through the DDAGTF.  Other 
internships, in the form of PhD programmes and support for selected missions in Geneva, as well as 
several short and fixed-term posts (L Posts) we re financed through this extra-budgetary fund. 
22. Finally, the Transposition of developing count ry Members' Schedules in the Consolidated 
Tariff Schedules database into the Harmonized System 2002 Nomenclature, a project which started in 2004, ran until 31 December 2005.   
TES05 and TES06 – Spain – Global Fund – Latin America 
 
23. Funds which remained available at the end of 2004 (TES05) were rolled over to 2005 and 
added to the new contribution provided by Spain in 2005.(TES06). 
24. The contribution of Spain towards the cost of  activities contained in the Annual Technical 
Assistance and Training Plans for the years 2004 and 2005 were earmarke d for Latin American 
countries. 
25. In 2005, funds provided by Spain were used to  finance the following four activities in Latin 
America:  
26. 1) Regional Seminar on Trade and Environment for Latin American a nd Caribbean Countries, 
held in Santo Domingo, Dominican Republic from 19 to 21 July 2005; 
27. 2) Special Training Course on WTO Dispute Settlement for Latin America, held in 
Montevideo, Uruguay from 31 May to 3 June 2005; 
28. 3) OAS / WTO Advanced Training Programme for Spanish-speaking Countries in Latin 
America on WTO and FTAA Issues, held in Washington D.C., USA from 13 to 24 June 2005; 
29. 4) Short Trade Policy Course for ALADI Members, held in Montevideo, Uruguay from 19 to 
30 September 2005. 
TEU02 European Commission – Labelling Event 
 
30. As the project was completed at the end of  2004, the unspent bala nce in this fund was 
refunded to the European Commission in 2005. 
TFI02 – Finland – Global Fund - LDCs  
 31. The contribution of Finland towards the cost of activities contained in the Annual Technical 
Assistance and Training Plan was earmarked for Least Developed Countries (LDC). WT/BFA/W/143 
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  32. In 2005, the cost for 202 participants from the LDC in the various activities implemented 
under the Doha Development Agenda Globa l Trust Fund was met from this fund. 
TFI03 – Finland – Global Fund - LDC  
 
33. In December 2005, Finland provided a contributio n towards the cost of activities contained in 
the 2006 Annual Technical Assistance and Training Pl an.  Finland's contribution is again earmarked 
for the Least Developed Countries. 
TFR02 – France – Global Fund – African Countries 
 
34. The contribution of France towards the cost of  activities contained in the Annual Technical 
Assistance and Training Plan was earmarked for the African countries in particular. 
35. In 2005, the contribution of France was used  to co-finance 15 activities held in Africa 
inscribed under the Doha Developmen t Agenda Global Trust Fund (TDDA4). 
TFR03 – France – STDF on SPS 
 
36. In December 2005, France provided a contribut ion to the Standards and Trade Development 
Facility programme in capacity bu ilding and technical assistance to assist developing countries in 
trade and SPS measures.  Funds will be used in 2 006 for projects and project preparation grants. 
TIF01 – UNDP – Integrated Framework – Outreach Activities 
 
37. UNDP is the trustee of the Integrated Fram ework Trust Fund (IFTF) on behalf of the six 
Integrated Framework Agencies (ITC, IMF, UNDP, UNCTAD, World Bank and WTO). 
38. UNDP created a specific project, Integrated Framework Global Advocacy and Information 
Strategy, to allow the transfer of USD 100,000 from the IFTF to the WTO in 2004. 
39. The WTO acts as the Secretariat to the IF and conducts outreach activities for the IF. 
40. The project aims to enhance advocacy and public  awareness of the Integrated Framework (IF) 
initiative.  Activities will focus on the disseminati on and sharing of inform ation, knowledge and 
lessons on trade mainstreaming experiences in partner LDCs.  The primary goal of the project is to 
generate a common and better unde rstanding of the IF's scope, process and methodology for trade 
mainstreaming into national development plans, incl uding poverty reduction strategies.  The project is 
also expected to help generate a better unders tanding of the development dimension of trade, 
especially with respect to the LDCs.  In this rega rd, the project will complement and reinforce least 
developed countries' own efforts to participate effectively in the global economy through solid 
partnership with development agencies, donors, a nd other stakeholders that will facilitate better 
informed global integration and cooperation. 
41. So far it has not been necessary to use the resour ces available in this trust fund.  Discussions 
to enhance the IF are on-going  in the Integrated Framework Task Force, which was created in 2005.  
It is expected that following the establishment of an enhanced IF, outreach activities will be 
organized necessitating funds from the project.   WTO Ministers in Hong Kong have decided that the 
enhanced IF shall enter into force no later that 31 December, 2006.   WT/BFA/W/143 
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  TIF02 – Integrated Framework – Programme Implementation Unit 
 
42. Denmark, Switzerland and the United Kingdom agreed to provide the necessary resources for 
the establishment of the IF Programme Implem entation Unit for the period 2006–2007, thereby 
strengthening the IF Secretariat.  The Programme  Implementation Unit (PIU) will consist of a chief 
coordinator, a deputy coordinator and an administrative assistant. 
TIMM1 – Internships for Selected Members' Missions in Geneva 
 
43. Contributions provided by Denmark, Ireland a nd the United Kingdom financed the cost of 8 
internship contracts in 2005.  Two interns were from Bolivia.  The remaining six were from Nepal, 
Guinea, Lesotho, Uganda, Tanzania and Nicaragua.  
44. Interns employed under this programme work in their own country Mission in Geneva and 
represent their respective country on selected WTO committees. 
45. These internship are open to nationals of developing countries including LDC and of 
economies in transition with a mission in Geneva.  The required qualification of candidates include (i) 
an appropriate economics, trade and/or  law degree at the post-graduate le vel, (ii) mastery of one of the 
WTO working languages and preferably a good knowledge  of another and (iii) working experience in 
the national administration in the trade-related ar ea.  Support function positions are not considered 
part of this programme.  Selected candidates are offered a contract for a maximum of ten/eleven months.  
TJIT2 - JITAP II 
 46. Activities undertaken under the Joint Integrated Technical Assistance Programme (JITAP II), 
implemented jointly by ITC, UNCTAD, and WTO, included national and sub -regional workshops, the 
establishment and strengthening of Reference Cent res (RCs) and National Enquiry Points (NEPs), 
several needs assessment missions, monitoring and technical missions on specific WTO-related 
topics, documentation related to Reference Centr es, as well as Temporary Assistance to the JITAP 
Focal Point in the WTO. 
47. The JITAP II programme is, inter alia, current ly implementing Module 2, in which the WTO 
has the lead role.  This Module aims to enhan ce dissemination of MTS-related information in the 
participating African countries, through RCs and N EPs.  The partner agencies developed a Toolkit for 
the  implementation of Module 2, which was applied during the implementation missions.   
48. In 2005, activities included implementation missions  for RCs and NEPs operators in Tunisia, 
Burkina Faso, Benin, Ghana, Tanzania, Uganda , and Mali.  Needs assessment missions were 
conducted in those JITAP countries that are to ha ve RCs and NEPs implem ented in 2006 – Botswana, 
Cameroon, Malawi, Mauritania, Mozambique, Se negal, and Zambia.  In addition, the WTO 
participated in training conducted to prepare th e JITAP countries for the Hong Kong Ministerial 
Conference.  This training was conducted for th e negotiating subjects of Agriculture (including 
cotton), NAMA, and Services.  Two activities were organized under each subject (one for each language group – English or French).  These activitie s were held in Mozambique, Cameroon, Senegal, 
Malawi, Mali, Tunisia, and Zambia.  In addition,  two video conferences were conducted involving all 
the JITAP countries as part of preparations for Hong Kong.   
49. A JITAP event was held on the margins of the Hong Kong Ministerial Conference in 
December 2005.  This event highlighted the achie vements of JITAP, and sensitized donors on the 
possibility of a continuation of JITAP beyond its current phase. WT/BFA/W/143 
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  50. Finally, Temporary Assistance to the Focal Poin t in the WTO-based Institute for Training and 
Technical Cooperation, in the form of one post fo r a JITAP Technical Officer and one secretarial post 
for the reinforcement of the Institu te were financed under JITAP II. 
TMI05 and TMI06 – LDCs Participation in the Ministerial Conference 
 
51. In order to facilitate the participation of Least Developed Countries (LDC) at WTO 
Ministerial Conferences, trust funds are established to cover the travel costs of their delegates. 
52. The remaining balance of the trust fund, which was established for the 5
th Ministerial 
Conference was transferred to the fund established for the 6th Ministerial Conference held in Hong 
Kong, China from 13 to 18 December. 
53. New contributions from Austria, Canada, Denmar k, European Communities, Iceland, Ireland, 
Japan, Netherlands, Norway, Chinese Taipei, Swed en and the United Kingdom were received. 
54. The travel costs of 134  delegates from the LDC were met from this fund. 
TNO04 – Norway – NGO Symposium 
 
55. The 2005 WTO Public Symposium, entitled "WTO after 10 years: Global Problems and 
Multilateral Solutions", saw a pub lic debate and discussion of a wide range of WTO issues and 
activities and looked ahead at WTO's challenges, following 10 years of the multilateral trading 
system.  More than 1000 representatives from around the world, representing civil society, academia, 
business, the media, governments and inter-governme ntal organizations, attended the symposium. 
56. Civil society organizations were encouraged to  run their own workshops on topics of their 
choice.  Of the 26 workshops held over the course of 2,5 days, 23 were organized by participants 
themselves.  The Symposium opened with a plen ary and two high level sessions, organized by the 
WTO Secretariat.  Among others, they featured, ch ief executive officers, academics and former WTO 
Directors-General. 
TNZ03 - New Zealand – Global Fund – Asia-Pacific 
 57. The contribution of New Zealand towards the cost of activities contained in the Annual 
Technical Assistance and Training Plan was earmarked for activities in the Asia-Pacific Region. 
58. In 2005, the contribution made by New Zeal and was used to co-finance the WTO / PIFS 
Regional Workshop on Custom Valuation for 14 PI FS Countries, held in Port Vila, Vanuatu from 
26 to 29 September 2005.  Moreover, costs for the upgrading of the WTO Reference centre in Suva 
were also met from this fund. 
TRC01, TRC02, TRC03 and TRC04 – ITC/WTO/EU – Reference Centers 
 
59. In order to assist Trade Ministries, Specia lized Agencies and Institutions to obtain WTO-
related information using information technolog y, Reference Centers are established with high 
performance PC equipment .  Reference Centers provide technical facilities that enable WTO 
documentation to be accessed by officials, the press, the general public, businesses, the wider 
economic community and academic institutions.  The Reference Centers set up the WTO are for official use, are normally attached to a Ministry  of Trade, and essentially house all documents that 
relate to the legal rules governing the MTS.  WT/BFA/W/143 
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  60. By the end of 2005, three Reference Centers in  Pakistan (Karachi, Lahore, Islamabad) and 
another in Sri Lanka were establishe d in collaboration with ITC//EU. 
TTRTA – Strategic Review of Trade Related Technical Assistance Activities 
 
61. In implementing the Annual TA Plans, moda lities for effective and efficient delivery and 
systematic gathering of feedback from the recipi ents (Members) and beneficiaries (Participants) 
gained importance.  Therefore, in 2002, the Secretariat put a  monitoring and evaluation (M&E) system into effect.  The internal M&E system 's main means of action is self-evaluation. 
62. Donors of the DDAGTF emphasized the importance of getting independent views and 
recommendations, which are usually not subj ect to on-going internal evaluations. 
63. Australia, Canada, Netherlands, Sweden, Sw itzerland and the United Kingdom provided 
contributions in 2005 for the Strategic Review of Trade Related Technical Assistance (TRTA). 
64. A consultancy firm was selected to conduct th e Strategic Review of TRTA.  The project 
started in 2005 and is expected to be comple ted by the end of the first semester of 2006. 
TUS03 – United States – SPS 
 65. The United States provided a contribution for SPS related activities. 
TWB01 – STDF on SPS 
 
66. At the Doha Ministerial Meeting held in Qa tar in November 2001, the Heads of the WTO, 
FAO, WHO, OIE and the World Bank committed their respective organizations to work together to 
strengthen the capacity of developing countries in meeting SPS standards.  The establishment of the 
Standards and Trade Development Facility (STD F) in September 2002 resulted from this joint 
commitment. 
67. The aim of the Standards and Trade Developmen t Facility (STDF) is to assist developing 
countries enhance their capacity to meet internati onal Sanitary and Phytosanitary (SPS) standards, 
improve their human health, animal health and phyto sanitary situation, and t hus gain and maintain 
Market Access. 
68. The seed funding was provided by the World Bank.  The STDF attracted funds from other 
sources to sustain itself.  In 2005, Australia, Cana da, Denmark, Italy, Netherlands, Sweden and the 
United Kingdom provided contributions. 
69. The STDF is managed by the WTO and develops  joint institutional projects and provides 
funding for SPS related projects in developing count ries.  It is both a financing and a coordination 
mechanism.  The STDF provides funds for two types of  grants: project preparation grants and project 
grants. 
EPSF – Programme Support Fund 
 
70. The Programme Support Fund (PSF) collects the 13 per cent overhead fees charged on direct 
costs in all the trust funds administered by the WTO.   According to its terms of reference, it should be 
used to finance expenses of a general nature (i.e . not related to any specific technical assistance 
project) which support technical assistance activities of the WTO as a whole. WT/BFA/W/143 
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  71. Ten per cent of the expenses in the PSF is stat utorily paid back to the WTO regular budget 
under Miscellaneous Income as a contribution to c over part of the operational costs incurred in 
relation with technical assistance activities (telephone, reproduction and translation). 
72. In 2005, expenses in the PSF corresponded mainly to L Post contracts (fixed-term positions 
created to help the Secretariat implement the tec hnical assistance mandate contained in the Doha 
Development Agenda) and short-term contracts for professionals or support staff in Divisions 
involved in the delivery or the administration of technical assistance activities. 
73. The contracts financed  included the following: 
(a) five support staff in the Budget and Contro l Section (Extra-budgetary Funds Unit and 
Technical Assistance Logistics Unit); 
(b) one support staff in the Finance and Accounts Section; 
(c) one support staff in the Travel Unit; 
(d) one support staff in the Human Resources Division; 
(e) one support staff in the Language Services and Documents Division; 
(f) two support staff in the ITTC; 
(g) one L Post in the Informatics Division; 
(h) two L Posts in the Economic Research and Statistics Division; 
(i) one L Post in the Budget and Control Section. 
ES963 – 1996 Surplus – Legal Expert Services 
 
74. Two professors of International Trade Law provi ded legal advice and assistance in respect of 
dispute settlement to developing country Members. 
T0013 – Independent Entity -Preshipment Inspection – Deposits 
 
75. The Independent Entity (IE) is a mechanism fo r settling disputes between exporters and pre-
shipment inspection companies/ag encies, constituted by the WTO, the International Chamber of 
Commerce (ICC) and the International Federation of Inspection Agencies (IFIA) and established 
under Article 4 of the Agreement on Pre-shipment Inspection. 
76. This fund consists of deposit payments made by the pre-shipment inspection companies to 
cover the estimated costs of an independ ent review in the event of a dispute. 
TPS01 – Preshipment Inspection – Review Alcatel / SGS 
 
77. In 2005, the first pre-shipment inspection case w as brought to the Independent Entity.  Parties 
involved in the case were Alcatel and Société Générale de Surveillance SA.  The review was completed in 2005.  WT/BFA/W/143 
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CONSOLIDATED FINANCIAL STATEMENTS 
AS AT 31 DECEMBER 2005 WT/BFA/W/143 
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  STATEMENT 1 
CONSOLIDATED BALANCE SHEET  
AS AT 31 DECEMBER 2005 
      
Assets   Liabilities 
      
WTO General Fund 18,218, 642.46  Outstanding Ob ligations 3,928,980.52 
      
Advance Education Grant 111,245.80  EPSF1 WTO Members-Programme Support Fund 1,004,276.76 
Advance Travel 1,275.20  ES963 WTO Memb ers- Legal Expert Services 49,458.74 
Advance ESCAP 65,194.50  T0006 Netherlands 602,127.30 
Advance TDDA60001 294,181.46  T0013 Bureau  Veritas International 17,657.20 
   T0013 Cotecna International Ltd 17,563.70 
Inventory - Publications 57,178.09  T 0013 Inspectorate Griffith Ltd 17,658.52 
   T0013 Inchape Testing Serv ices International Ltd 17,657.20 
Prepaid Expenditure 49,848. 18  TDDA4 Austria 141,144.36 
   TDDA4 Australia 207,956.86 
   TDDA4 Belgium 20,215.85 
   TDDA4 Canada 322,597.66 
   TDDA4 Switzerland 39,731.12 
   TDDA4 Czech Republic 25,119.02 
   TDDA4 Germany 1,024,620.93 
   TDDA4 Denmark 496,356.88 
   TDDA4 France 79,124.27 
   TDDA4 Hong Kong 15,387.83 
   TDDA4 Ireland 163,593.05 
   TDDA4 Iceland 19,754.97 
   TDDA4 Italy 498,228.51 
   TDDA4 Japan 490,434.88 
   TDDA4 Republic of Korea 115,169.92    TDDA4 Liechtenstein 6,603.46 
   TDDA4 Luxembourg 143,624.79 
   TDDA4 Netherlands 575,730.85 
   TDDA4 Norway 832,641.86 
   TDDA4 New Zealand 70,816.50 
   TDDA4 Sweden 1,109,464.62 
   TDDA4 Taipei (Chinese) 20,868.55 
   TDDA4 United Kingdom 479,787.79 
   TDDA4 United States 685,870.93 
   TES06 Spain 181,669.52 
   TFI03 Finland 694,290.48 
   TFR03 France 77,143.39 
   TIF01 UNDP 124,992.02 
   TIF02 WTO Members - Denmark 562,905.43 
   TIMM1 Denmark 561,333.83 
   TIMM1 Ireland 185,638.04 
   TJIT2 Jitap II 314,101.08 
   TMI06 Austria 19,400.10 
   TMI06 Australia 7,287.73 
   TMI06 Canada 79,737.94 
   TMI06 Switzerland 8,538.55 
   TMI06 Denmark 127,707.00 
   TMI06 European Commission 43,282.41 
   TMI06 Ireland 43,092.03 
   TMI06 Iceland 12,438.81 
   TMI06 Japan 27,275.16 
   TMI06 Luxembourg 4,705.35 
   TMI06 Netherlands 48,003.58 
   TMI06 Norway 165,881.25 
   TMI06 Sweden 253,537.33 
   TMI06 Taipei (Chinese) 20,359.31 
   TMI06 United Kingdom 93,448.71 
   TNL05 Netherlands 39,283.11    TNO04 Norway 94,225.94  WT/BFA/W/143 
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Assets   Liabilities 
      
      
   TPS01 Alcatel 5,724.17 
   TPS01 SGS 5,773.52 
   TRC01 ITC/EU -6,578.21 
   TRC02 ITC/EU 14,461.76 
   TRC03 ITC/EU 3,162.93 
   TTRTA Australia 46,203.60 
   TTRTA Canada 24,054.42 
   TTRTA Netherlands 49,109.01 
   TTRTA Sweden 24,391.86 
   TRTA Switzerland 24,581.61 
   TTRTA United Kingdom 49,000.59 
   TUS03 United States 19,199.85 
   TWB01 Australia 50,664.50 
   TWB01 Canada 103,556.95 
   TWB01 Denmark 280,931.18 
   TWB01 France 26,796.73 
   TWB01 Italy 82,114.51 
   TWB01 Netherlands 175,703.24 
   TWB01 Sweden 172,317.40 
   TWB01 United Kingdom 500,944.26 
   TWB01 World Bank Institute 110,064.40 
    WTO Members 4,883.91 
Total 18,797,565.69   Total 18,797,565.69 
 
 
    
 
  
  (signed)  (signed) 
  _______________________  ______________________  
  Pascal Lamy Robert Luther 
  Director-General Director    Administration and General Services Division 
 WT/BFA/W/143 
Page 14  
 
  STATEMENT 2 
CONSOLIDATED PROFIT AND LOSS STATEMENT 
AS AT 31 DECEMBER 2005 
     
  Expenses   Income 
          
Fixed-term Contracts   Contributions   
  Salary & Common Staff Costs 2,984, 439.74 EPSF1 WTO Members 1,323,109.56 
  Interviews 19,440.60 ES963 Le gal Expert Services 57,600.00 
Temporary Assistance   TF T0006 Netherlands 163,923.28 
  Salary & Common Staff Costs 2,519, 566.50 TF T0013 PSI Companies -30.66 
  Translators 54,796.00 TF TBE02 Belgium 341,690.44 
  Interpreters 95,245.63 TF TDDA3 DDAGTF -561,709.75 
  Consultants 3,335,713.60 TF TDDA4 DDAGTF 13,484,190.15 
  Internships 1,093,954.15 TF TES06 Spain 364,967.57 
Telecommunications 32, 902.59 TF TEU02 European Commission 45,447.52 
Postal Services 121,744.41 TF TFI02 Finland 840,144.73 
Maintenance 2,708.65 TF TFI03 Finland -840.48 
Purchase of Equipment 631,233. 80 TF TFR02 France 443,167.08 
Leasing of Equipment 299,527. 13 TF TFR03 France -93.39 
Office Supplies 544.68 TF TIF01 UNDP -1,791.85 
Reproduction 50,753.48 TIF02 Denmark -681.43 
Softwares & Office Automation 21,301.00 TF TIMM1 Interns 127,781.56 
Security Outsourcing 22,544.00 TF  TJIT2 - JITAP II 1,400,227.94 
Insurance 86,168.88 TF TMI05 Mi nisterial Conference 97,640.96 
Technical Assistance Direct Costs   TF TMI06 Ministerial Conference 636,775.14 
  Rental of Premises 254,239. 25 TF TNL05 Netherlands 787,855.72 
  Airfare & Transportation 6,763, 508.52 TF TNO04 Norway 150,258.75 
  Subsistence 3,140,006.05 TF  TNZ03 New Zealand 173,719.15 
  Hotel 1,994,364.57 TF TPS01 Alcatel/SGS 20,932.00 
  Hospitality 242,071.82 TF TRC01 ITC/WTO/EU 3,702.65 
Dispute Settlement Panels 20,932. 00 TF TRC02 ITC/WTO/EU 19,538.16 
Publications 215,290.55 TF TRC03 ITC/WTO/EU 19,283.25 
Bank Charges 23,771.93 TF TTRTA WTO Members 199,208.27 
Miscellaneous 27,357.27 TF TU S03 United States -275.24 
Loss on Exchange 822.34 TF TWB01 Worl d Bank & WTO Members 3,911,588.79 
      Total 24,047,329.87 
          
      Overhead Fees   
          
      EPSF1 WTO Members 710,066.44 
      TF T0006 Netherlands 22,523.05       TF TBE02 Belgium 45,097.15 
      TF TDDA3 DDAGTF -73,022.27 
      TF TDDA4 DDAGTF 1,762,051.97 
      TF TES06 Spain 48,025.31 
      TF TFI02 Finland 110,884.37 
      TF TFR02 France 58,490.29 
      TF TIMM1 Interns 17,409.98 
      TF TJIT2 - JITAP II 182,906.78 
      TF TMI06 Mini sterial Conference 83,224.91 
      TF TNL05 Netherlands 102,861.17 
      TF TNO04 Norway 19,787.32 
      TF TNZ03 New Zealand 22,923.13 
      TF TPS01 Alcatel/SGS 2,721.16 
      TF TRC01 ITC/WTO/EU 481.34 
      TF TRC02 ITC/WTO/EU 2,539.96 
      TF TRC03 ITC/WTO/EU 2,506.82 
      TF TTRTA WTO Members 26,250.64 
      TF TWB01 World Bank & WTO Members 511,405.17 
Overhead Fees 3,659,134.69 Total  3,659,134.69  WT/BFA/W/143 
 Page 15 
 
 
   
  Expenses    Income   
     
Contribution Reimbursements   Other Income - Interests   
  European Commission TEU02 45,447.52     
  European Commission TMI05 97,640.96 T0006 9,330.92 
  European Commission TMI06 5,986.25 TBE02 5,210.68 
      TDDA4 65,171.84 
      TES06 4,457.89 
      TFI02 12,811.95 
      TFI03 840.48 
      TFR02 6,758.16 
      TFR03 93.39 
      TIF01 1,791.85 
      TIF02 681.43 
      TIMM1 6,141.39 
      TJIT2 6,747.32 
      TMI06 3,416.50       TNL05 3,384.06 
      TNO04 1,951.37 
      TNZ03 2,612.68 
      TTRTA 2,719.73 
      TUS03 275.24 
      TWB01 22,297.12 
      
Total 156,694.00 
          
TOTAL 27,863,158.56 TOTAL 27,863,158.56 
 
 
 
 
    
  (signed)  (signed) 
  _______________________  ______________________    Pascal Lamy Robert Luther   Director-General Director    Administration and General Services Division  WT/BFA/W/143 
Page 16  
 
  EXTRA-BUDGETARY FUNDS 
FINANCIAL SITUATION OVERVIEW - 2005 
 
 
78. Table 1 synthesizes the financial situati on of all the extra-budgetary funds as at 
31 December 2005. 
79. It is worth nothing that the Secretariat also prepares a detailed financial statement of accounts 
for each  individual trust fund.  These reports are submitted to the donors and contain factual 
information including date, type, location, benefici aries and subject of events with regard to the 
activities undertaken or under way with the fina ncial support of the voluntary contributions. 
80. During 2005, resources made available by the don ors in the following tr ust funds have been 
fully used: 
- TBE02 Belgium – GTF – Selected Countries 
- TFI02 Finland – GTF – LDC 
- TFR02 France – GTF – Selected Countries 
- TNZ03 New Zealand – GTF – Asia-Pacific 
 81. Since the projects have been completed, the follo wing trust funds will be  closed in 2006 after 
the reimbursement of the remaining unspent funds: 
- T0006 Netherlands Trainees 
- TPS01 Alcatel/SGS Pre-Shipment Inspection Review 
- TRC01 ITC/EU  Reference Center Project 
- TRC02 ITC/EU  Reference Center Project 
- TRC03 ITC/EU  Reference Center Project 
 82. As at 31 December 2005, the remaining balan ces in all the funds entrusted to the WTO 
amounted to CHF 14, 868,585.17. 
83. Expenditure, including the overhead fees, in curred in all the trust funds totalled 
CHF 27,863,158.56 for the year 2005. 
84. Charts 1 and 2 complement the information provided in the consolidated statements by 
presenting a statistical analysis, largely based on qualita tive inputs, of the total expenditure incurred in 
the course of the year.  
85. They contain information on the geographical/r egional and subject-based distribution of the 
total expenditure. 
86. To the extent possible, expenditure has been  classified and grouped under seven regions 
including the WTO Headquarters in Chart 1 and subjects/topics in Chart 2. 
87. In Chart 1, expenditure grouped under the WT O Headquarters corresponds to staff costs, 
L-Posts and short-term contracts of staff who are assigned to various WTO Divisions and whose task 
is to deliver technical assistance or provide support in the delivery of technical assistance, which in 
principal is beneficial to all regions. 
88. As to the subjects covered, Chart 2 shows that  all WTO substantive topics have been covered 
in a coherent manner. 
   WT/BFA/W/143
 Page 17STATEMENT 3 - EXTRA-BUDGETARY FUNDS - FINANCIAL SITUATION OVERVIEW – 2005 
 
Fund Donor   Balance  
1 Jan 2005  Transfers  Contributions  Interest  Expenditure  Overhead 
Fees  Balance  
31 Dec 2005  Notes 
T0006 Netherlands Trainees 788,573.63   9,330.92 173,254.20 22,523.05 602,127.30 (1) 
TBE02 Belgium GTF - Selected Countries  386,787.59   5,210.68 346,901.12 45,097.15 0.00 (2) 
TDDA3 WTO Members GTF - 2004 7,816, 147.51 (8,497,139.53)  46,260.00   (561, 709.75)  (73,022.27)   -  
TDDA4 WTO Members GTF - 2005 (2,999,451. 21) 8,307,139.53 17,528, 283.17 65,171.84 13, 554,245.90 1,762,051. 97  7,584,845.46  
TES05 Spain  GTF - Latin America - 2004 100,902.40 (100,902.40)       -  
TES06 Spain  GTF - Latin America - 2005  -   100,902.40 493,760.00 4,457.89 369,425.46 48,025.31 181,669.52 (2) TEU02 European Commission  Labeling Event  45,447.52     45,447.52    -  TFI02 Finland  GTF - LDC 951,029.10   12,811.95 852,956.68 110,884.37 0.00 (2) 
TFI03 Finland GTF - LDC - 2006   693,450.00 840.48  -   694,290.48  
TFR02 France  GTF - Selected Countries 501,657.37   6,758.16 449,925.24 58,490.29   -   (2) TFR03 France  STDF   77,050.00 93.39  -    77,143.39  
TIF01 UNDP IF for Outreach Activities 123,200.17   1,791.85  -   124,992.02  
TIF02 WTO Members IF - PIU   562,224.00 681.43  -   562,905.43  
TIMM1 WTO Members Interns for Selected Missions 125,943.41  766,220.00 6,141.39 133,922.95 17,409.98 746,971.87  
TJIT2 ITC JITAP II 915,890.52  981,345.28 6,747.32 1,406,975.26 182,906.78 314,101.08  
TMI05 WTO Members 5th Ministerial Conference  97,640.96     97,640.96    -    TMI06 WTO Members 6th Ministerial Conference 109,391.94 40,000.00 1,525,303.37 3,416.50 640,191.64 83,224.91 954,695.26  
TNL05 Netherlands  Trainee Programme  -    930,000.00 3,384.06 791,239.78  102,861.17   39,283.11  
TNO04 Norway  NGO Symposium 264,272.01   1,951.37 152,210.12 19, 787.32   94,225.94  
TNZ03 New Zealand  GTF - Asia-Pacific 196,642.28   2,612.68 176,331.83 22,923.13   -   (2) 
TPS01 Alcatel / SGS Preshipment Inspection  Review   -     35,150.85   20,932.00  2,721.16 11,497.69 (1) 
TRC01 ITC/WTO/EU  Reference Center Project  (2,394.22)    3,702.65 481.34 (6,578.21) (1) TRC02 ITC/WTO/EU Reference Center Project    36,539.88   19,538.16  2,539.96 14,461.76 (1) 
TRC03 ITC/WTO/EU Reference Center Project  -     24,953.00   19,283.25  2,506.82 3,162.93 (1) 
TTRTA WTO Members Strategic Review of TRTA  -    442,800.00 2,719.73 201,928.00 26,250.64 217,341.09  TUS03 United States  SPS  18, 924.61   275.24  -   19,199.85  
TWB01 WB and WTO Members STDF on SPS 785,052.44 150,000.00 4,991,034.69 22, 297.12 3,933,885.91 511, 405.17 1,503,093.17  
TOTAL TRUST FUNDS   10,225,658.03  -   29,134,374.24 156,694.00 22,828,228.88 2,949,068.25 13,739,429.14  
OTHER EXTRA-BUDGETARY FUNDS         
EPSF1 Programme Support Fund 88,384.51  2,949,068. 25  1,323,109.56 710,06 6.44 1,004,276.76  
ES963 96 Surplus (Legal Fund)  107,058.74     57,600.00 -     49,458.74  
T0013 Pre Shipment Inspection 
Deposits   88,156.81  (17,650.85)  (30.66) -   70,536.62  
 Adjustment 06       (4,883.91)  4,883.91  
TOTAL OTHER EXTRA-BUDGETARY FUNDS  283,600.06  -   2,931,417.40  -   1,375,794.99  710,066.44  1,129,156.03  
GRAND TOTAL    10,509,258.09  -   32,065,791.64 156,694.00 24,204,023.87 3,659,134.69  14,868,585.17  
(1)  Funds to be closed . 
(2)  Funds earmarked for sp ecific activities included in the TA Plan – DDAGTF.  
 
  
 
   (signed)  (signed) 
  _______________________   ______________________  
  Pascal Lamy  Robert Luther   Director-General  Director     Administration and General Services Division WT/BFA/W/143 
Page 18      
    
  Chart 1 - Regional Distribution of Expenditure
 
2005  
10 . 8
6.9
3.6
0. 92.4
0.13. 2
024681012
Africa
All Regions
Asia-Pacific
Central & Eastern Europe & Central Asia
Latin America & Caribbean
Middle East
WTO Headquarters, Geneva, SwitzerlandTotal Expenditure: 27.8 million
Million
 
Chart 2 - Expenditure Distribution by Subject  
2005  
 
0.0 0.5 1 .0 1 .5 2.0 2.5 3.0 3.5 4.0 4.5 5.0AccessionAgricultureCapacity BuildingCompetition PolicyCustom ValuationDispute SettlementGovernment ProcurementInformation Technology/WTO Reference CentresIntegrated Framework/Least-Developed CountriesInternsL PostsLDCs in the 6th WTO M inisterial ConferenceM arket AccessMiscellaneousOutreach ActivitiesPhD InternshipsPreparation of TPR ReportsRegional Trade AgreementsRegional Trade Policy CoursesRulesSanitary and Phytosanitary M easuresServicesShort Trade Policy CoursesSTDF on SPSStrategic Review of TRTATechnical Barriers to TradeTemporary AssistanceTextiles and ClothingTrade and DevelopmentTrade and EnvironmentTrade FacilitationTrade Negotiation SkillsTrade-Related Intellectual Property RightsTrainees
Millio nTotal Expenditure: 27.8 million
 WT/BFA/W/143 
Page 19 
     
    
  REPORT OF THE EXTERNAL AUDITOR ON THE EXTRA–BUDGETARY FUNDS OF 
THE WORLD TRADE ORGANIZATION FOR THE FINANCIAL PERIOD 2005 
89. The WTO Extra-Budgetary Funds are administ rated within the WTO accounting system but 
kept separately from the regular budgetary funds and identified as Company 3. 
90. The total assets and liabilities amount to CHF 18,797,566 and are disclosed in the 
consolidated balance sheet as at 31 December 2005.  The main asset amount relates to the General 
Fund and amounts to CHF 18,218,642 and is administered by WTO on behalf of the donors.   
91. The total expenses are disclosed in the c onsolidated Profit and Loss Statement as at 
31 December 2005 and amount to CHF 27,863,859 a nd is covered by contributions, overhead fees 
(lump-sum of 13 % on the total direct costs) and interests.  
92. The Consolidated Balance Sheet as at 31 December 2005 discloses an amount of 
CHF 4,883.91 in favour of WTO Members.  The External Auditor was informed that this amount relates to TTDA4 (Doha Development Agenda Global Trust Fund).  However, the project 
implemented under TDDA4 to which this credit am ount pertains could not be identified.  The 
External Auditor was further informed that it is planned to credit this amount to the donors of TDDA4 
according to their share.  The External Audito r recommends that the amount in favour of WTO 
Members should be clearly disclosed in the 2006 statements. 
93. In case trainings are organized by an internati onal partner but co-financed by WTO payments 
are done based on statements of ac counts provided by the organizing pa rtner.  However, the External 
Auditor noted that no supporting documentations (e .g. copies of flight tickets) are provided to 
evidence the accuracy of th e costs charged to WTO.  Therefore,  the External Auditor recommends to 
agree with the organizing partner upfront that suppor ting documentation has to be provided in order to 
be able to perform a proper control.  
94. In the light of the envisaged introduction of  the International Public Sector Accounting 
Standards (IPSAS) the External Auditor reco mmends considering to identify the necessary 
adaptations in order to comply especially with IPSAS 1 (Presentation of Financial Statements). 
95. The External Auditor noted that the year end statements of the accounts are issued to the 
donors prior to the completion of the external audit.  
 
   
 
_________________________________________ 
Josef Moser 
President of the Austrian Court of Audit WT/BFA/W/143 
Page 20  
 
  ANNEX 
 
STATEMENT OF SIGNIFICAN T ACCOUNTING POLICIES 
 
1. Financial and accounting records of the trust f unds are maintained in conformity with the 
WTO Financial Rules and Regulations, as adopt ed by the General Council (WT/GC/M8 and 
WT/GC/M/82, respectively). 
2. The financial period consists of one calendar year. 
3. Expenditure is accounted for on accrual basis. 
4. The accounts are maintained in Swiss francs.  Wherever applicable, conversion of currencies 
are made in conformity with WTO practices. 
5. Gains or losses on exchange are added to or deducted from miscellaneous income. 
6. A reserve is maintained for all outstanding ob ligations at the end of the financial year. 
7. Commitments are entered for the entire amount of  outstanding obligations identified as such. 
8. Overhead fees equivalent to 13 per cent of the direct cost of the activity financed with the 
support of the Donor are charged to the trust funds
 in accordance with the decision of the General 
Council reported in WT/GC/M/32. 
9. Interest earned on the Donor's contribution is show n in the financial reports and statements of 
accounts. 
 
 
 
    
  (signed)  (signed) 
  _______________________  ______________________    Pascal Lamy Robert Luther   Director-General Director    Administration and General Services Division  
 
__________