WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/BFA/125 
14 July 2011 
 (11-3523) 
Committee on Budget, Finance and Administration  
  
 
REPORT OF THE MEETING HELD ON 5 JULY 2011 
 
 1. The WTO Committee on Budget, Finance and Administration met on 5 July 2011 under the 
chairmanship of Mr. Pasi-Heikki Vaaranmaa (Finla nd).  The terms of reference and composition of 
the Committee are set out in document WT/L/44/Re v.1.  The agenda contained in document 
WTO/AIR/3776 was adopted. 
I. COMMON FACILITIES REPORT (WT/BFA/W/239) 
2. The Committee continued its review of the Common Facilities Report, presented at the last 
meeting of the Committee.  The Deputy Director-Gener al recalled the key elements of the request to 
the Committee to authorize expenditures from the Members' Transition Operating Fund for three 
projects: a) the procurement of furniture for th e common areas, including the Atrium, the new coffee 
shop, the delegates' dining room, a press centre an d briefing room, new delegate work rooms and 
small meeting rooms; b) the new central archivin g facility and c) the furniture for the new ITTC 
training centre to be located on the 4
th floor. He updated the Committee on the current status of each 
of these projects.  He also highlighted the need to sign contracts rapidly in order to meet the delivery 
dates of the Building Project.   
3. The Committee agreed that an amount of up to CHF 2,300,000 from the Members' 
Transition Operating Fund may be used to fina nce the equipping and furnishing of the common 
areas, training facilities and archive rooms in the renovated CWR building.   
II. WTO 2010 FINANCIAL PERFORMANCE REPORT (WT/BFA/W/236) 
4. A member of the Secretariat presented th e WTO 2010 Financial Performance Report. The 
External Auditor had audited the 2010 financial statements in April,  and its report (WT/BFA/237) had 
been distributed. The First President of the Fren ch Cour des Comptes would present the report at a 
date to be announced in due course.   
5. The Secretariat highlighted key changes in  the reporting format of the 2010 financial 
statements.  The gradual implementation of Intern ational Public Sector Accounting Standards had 
resulted in two new disclosures in 2010.  The result s of the first actuarial valuations for the WTO's 
liability towards the pension plan and for after ser vice health insurance had been included in the 
report.  These significant accounting liabilities would be subject to further analysis and discussion in the Committee in the coming years.  The reporting of  fixed assets had also been modified as disclosed 
in the notes to the financial statements.  The new methodology for calculating provisions for 
contributions in arrears had also taken effect at  the end of 2010 and ha d released some CHF 10 
million of provisions to the Surplus Account  
6. The 2010 budget, amounting to CHF 194 million, had been fully committed at the end of the 
year. Additional expenditures incurred in connectio n with the Building Project had been offset by 
savings in other areas of the budget.  The Su rplus Account showed a credit balance of CHF 
10,527,319 at the end of 2010. WT/BFA/125 
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  7. Trust funds had accumulated CHF 25.7 million of voluntary contributions in 2010. Trust fund 
expenditures had amounted to CHF 29.5 million du ring the same period. The Doha Development 
Agenda Trust Fund remained the main fund with  CHF 18.1 million of expenditure in 2010.   
8. The Committee took note of the report a nd recommended that the General Council 
approve the transfers between budgetary sections  as outlined in paragraphs 27 and 33 of 
document WT/BFA/W/236.  Th e Committee further recommende d that the General Council 
approve the audited accounts for 2010.  
III. UTILIZATION OF THE 2010 SURPLUS (WT/BFA/W/243)  
9. The Deputy Director-General presented the Direct or-General’s proposal to transfer the CHF 
10.5 million credit balance of the Surplus Account available at the end of 2010 to the Members' 
Transition Operating Fund.  The Secretariat ha d regularly updated the Committee on the Building 
Project and the related Common Facilities that wo uld need to be equipped in order to become 
operational.  The latest estimated total cost for the Common Facilities, reported under the first item of 
the agenda, amounted to CHF 21.3 million.  The Me mbers' Transition Operating Fund current balance 
was insufficient to cover all the costs associa ted with the equipping of the Common Facilities. 
10. The transfer of the credit balance of the Surp lus Account available at the end of 2010 would 
close the funding gap.  The Deputy Director-General pointed out that this proposal, if accepted by the 
Members, would avoid the need for the Secretariat to request additional funds in the 2012-2013 
budget proposal to finance Common Facilities.   
11. Following questions from Members, additional in formation was also provided on the potential 
costs associated with the future  new accreditation building and the Villa Rappard, currently occupied 
by a crèche and soon to be made available to th e WTO.  These two project s remained at a very 
preliminary stage. However, the Secretariat did not expect to seek additional funding for them in the 
next two years. 
12. One Member indicated that its national legisla tion prevented the transfer of funds when not 
assigned to clearly defined projects and expected that the projects with no current cost estimates 
would be funded through savings achieved on th e various Common Facilities projects, hopefully 
leaving a positive balance in the Members' Trans ition Operating Fund when it was closed in 2013.  
Some Members said that they would not expect to see any further increases in the cost estimates of 
the Common Facilities projects. 
13. The Committee recommended 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.   
IV. REPORT ON WTO SECURITY A ND SAFETY (WT/BFA/W/243)  
14. The Secretariat presented a report on recent developments with regard to security and safety 
at the WTO.  The WTO continues to face a number of security risks as an international organization. 
The Secretariat detailed the progress achieved in th e professionalization of its Security and Safety 
Section since 2004. The former in-house guard team ha d been outsourced in 2005.  The contract with 
the outsourced security service provider had been re -tendered in 2009. The use of key performance 
indicators had been implemented to monitor the quality of the service provided, with resulting 
improvements in performance.     
15. The WTO had also modernized its security e quipment. A 24-hour control centre had been 
established using modern, cost effective integrated video surveillance and alarms monitoring systems.   WT/BFA/125 
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  Improvised Explosive devices (IED) recognition equipm ent had also been acquired and modern X-ray 
inspection equipment installed in the temporary accreditation facility. 
16. The Building Project and the future secur ity perimeter would lead to significant 
improvements in the physical security posture for th e WTO site and significant changes in the work of 
the WTO Security and Safety Section.  Once co mpleted, the overall cost of security should be 
reduced.    
V. ADMINISTRATIVE MEASURES FOR INACTIVE MEMBERS 
17. A member of the Secretariat recalled that the Membership had established a number of 
Administrative Measures for Members that had one full year or more of assessed contributions remaining outstanding at the end of the fina ncial year.  With r espect to Members under 
Administrative Measures, it was reported that 16 Members were under Administrative Measures at 
the end of June, comprising four in Category I, th ree in Category II, two in Category III and seven in 
Category IV (Inactive). In answer to a question from a Member, the Secretariat confirmed that the full 
implementation of Administrative Measures had be en initiated and Members concerned were being 
formally notified. 
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