. /.  WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/BFA/W/243 
24 June 2011  
 
(11-3119) 
Committee on Budget, Finance and Administration  
  
 
UTILIZATION OF THE 2010 SURPLUS 
 
 1. This document presents the Director-General's  proposal regarding the use of the credit 
balance of the Surplus Account available at the end of 2010.  
2. The WTO 2010 Financial Performance Report (WT/BFA/W/236) discloses a credit balance in 
the Surplus Account amounting to CHF 10,527,319 as at 31 December 2010.      
3. WTO Financial Regulation 26.3 (WT/L/156/Rev.2) s tipulates that: "If at the end of a financial 
period the Surplus Account shows a credit balance, the Director-General shall make proposals to the 
Committee on Budget, Finance and Administrati on with regard to its use which may be: 
i) application as income against the budget for the second financial period following 
that in which the surplus occurs, thereby reducing Members' contributions;  
ii) transfer to the Working Capital Fund;  or 
iii) use for any other purpose decided upon by the General Council." 
4. The General Council established the Members' Transition Operating Fund (the Fund) in 
December 2008 (WT/BFA/107). The Fund was created in the context of the CHF 130 million WTO 
building project to provide for additional operatin g costs during the construction work and final 
installation costs once the construction work was completed. The Fund avoids the need for large 
increases in the Secretariat's regular budget to cove r these costs. The Fund is subject to the following 
guidelines: 
i) The Fund may only be used to finance additional operating costs during the 
construction work and final installati on costs once the construction work is 
completed. 
ii) The Secretariat shall maintain an upda ted and detailed list of the estimated 
expenditures that could be financed by the Fund.  The list shall be regularly presented 
to the Committee. 
iii) The use of the Fund shall be subject to the approval of the Committee. 
iv) The Secretariat shall report on the use of the Fund as part of the annual financial 
report. 
v) The General Council may authorize the replenishment of the Fund through the 
regular biennium budget process or the use of the Surplus Account. 
vi) The Fund shall be closed at the end of the project on 31 December 2013 and any un-
used funds shall be returned to the WTO accounts. 
5. The Fund received two allocations from the Su rplus Account for a total of CHF 9,088,704. 
The Fund received an initial allocation of CHF 8,05 1,716 at the end of 2008 and a second allocation 
of CHF 1,036,988 at the end of 2010. The.  In December 2010, the Co mmittee on Budget, Finance 
and Administration agreed that an amount of up to CHF 3,000,000 of the Fund may be used to finance 
the equipping of the South Courtyard Conference Centre. At the end of May 2011, the Fund WT/BFA/W/243 
Page 2  
 
  committed CHF 1,809,445 on the South Courtyard Conference Centre, leaving a balance of 
CHF 7,279,259 in the Fund.  
6. The Secretariat regularly updates the Committe e on the Building Project and the related 
Common Facilities that will need to be equipped in order to become operational.  The latest report on 
Common Facilities projects (WT/BFA/W/239) provides details on each project and estimates that the 
total costs could amount to CHF 21.3 million.  
7. The Fund's current balance is insufficient to cove r all the costs associated with the equipping 
of the Common Facilities.  The transfer of the cred it balance of the Surplus Account available at the 
end of 2010 would substantially close the funding gap for those projects where preliminary costs estimates have been established. However, there ar e some additional projects where costs estimates 
have not yet been established, including the renovati on of the villas currently occupied by the crèche 
and the new security and accreditation building to be included as part of the new security perimeters.  
8. The Director-General therefore proposes that th e credit balance of the Surplus Account be 
transferred to the Fund and invites the Comm ittee to consider the following recommendation: 
 The Committee recommends to the General Council that the credit balance of the 
Surplus Account as at 31 December 2010 amount ing to CHF 10,527,319 be transferred to the 
Members' Transition Operating Fund. 
 
 
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