WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/BFA/W/259 
2 March 2012 
 (12-1255) 
Committee on Budget, Finance and Administration  
  
 
    
REPORT OF THE OFFICE OF INTERNAL AUDIT (OIA) 
 
JANUARY - DECEMBER 2011 
 WT/BFA/W/259 
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  Summary  
 
The OIA hereby presents its third report to th e Committee on Budget and Finance covering internal 
audit activities of the World Trade Organization for the period January to December 2011. 
 
The report addresses the background, audit activities carried out during the period, audit resources, 
personnel development, challenges and oppor tunities and the audit plan for 2012. 
 During the period, the OIA: 
- Issued two audit reports, one on clean ing and maintenance services and the 
second on security and safety activities; 
- Updated and continued working on a de legation of authority, responsibility 
and accountability  matrix; 
- Was part of an adhoc joint advisory body (JAB) to examine the possible 
application of a disciplinary measure against a member of staff; 
- Undertook eight follow-up audits, tw o on procurement, two on mission 
travel, two on payroll activities and two on ITTC administrative and 
logistical support activities in order to verify the implementation status of 
various audit recommendations.  
The table below illustrates the progress made in the implementation of audit recommendations for 
different activities and their ultimate status as at 31 December 2011. 
 
Procurement Audit of 17 November 2008  (41 recommendations)  
 
Audit follow-up date   
Implementation  
status  
Closed1 WIP2 Open3 
31.07.2009 27% 51% 22% 
30.04.2010 57% 29% 14% 
31.12.2010 80% 9% 11% 
30.09.2011 84% 13% 3% 
31.12.2011 86% 11% 3% 
Mission travel audi t of 13October 2009  (23 recommendations)
30.06.2010 17% 39% 44% 
31.12.2010 31% 52% 17% 
15.07.2011 57% 39% 4% 
31.12.2011 57% 39% 4% 
Payroll audit of 28 Ju ne2010  (33 recommendations)
31.12.2010 6% 61% 33% 
31.08.2011 27% 55% 18% 
31.12.2011 39% 52% 9% 
ITTC audit of 2December 20 10  (12 recommendations)
31.07.2011 8% 50% 42% 
31.12.2011 50% 17% 33% 
Cleaning services audit of 30 June 2011
Follow-up is scheduled for 2012  
Security and safety audit of 11November 2011 
Follow-up is scheduled for 2012  
                                                      
1 Refers to recommendations th at have been implemented. 
2 Refers to progress being made  in ta king remedial action (Work in progress). 
3 Refers to recommendations with no re medial action taken as yet but with proposed remedial action plans to 
address the recommendations. 
  WT/BFA/W/259 
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  A summary of audit activities not only for the period being reported upon but also for the previous 
periods and those planned for 2012 is shown in Annex I for comparison purposes. 
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  Table of Contents 
 
            P a g e  
 
I.  BACKGROUND .................................................................................................................... ... 6 
II.  AUDIT ACTIVITIES 2011 ...................................................................................................... 6  
A.  AUDIT PLAN 2011 ........................................................................................................................ 6  
B.  AUDIT OF CLEANING AND MAINTENANCE SERVICES  ................................................................... 6  
C.  AUDIT OF SECURITY AND SAFETY ACTIVITIES  ............................................................................. 7  
D.  FOLLOW -UP AUDITS  .................................................................................................................... 8  
E.  DELEGATION OF AUTHORITY , RESPONSIBILITY AND A CCOUNTABILITY MATRIX  ...................... 12  
F.  FRAUD POLICY  ........................................................................................................................... 12  
III. OTHER ACTIVITIES............................................................................................................ 12  
IV.  INTERNAL AUDIT RESOURCES ...................................................................................... 12  
V.  PERSONNEL DEVELOPMENT AND NETWORKING .................................................. 13  
VI.  CHALLENGES AND OPPORTUNITIES ........................................................................... 13  
VII. AUDIT PLAN FOR 2012 ....................................................................................................... 13  
VIII. CONCLUSION .................................................................................................................... ... 13 
ANNEX I: - SUMMARY OF AUDIT ACTIVITIES 2008-2011 AND PLANNED FOR 
2012 .......................................................................................................................... ................ 14  
ANNEX II:-RECOMMENDATIONS-CLEANING AND MAINTENANCE SERVICES 
AUDIT ......................................................................................................................... ............. 15  
ANNEX III:-RECOMMENDATIONS-SECURITY AND SAFETY ACTIVITIES 
AUDIT ......................................................................................................................... ............. 18  
ANNEX IV:-IMPLEMENTATION STAT US-PROCUREMENT AUDIT .................................... 21  
ANNEX V:-IMPLEMENTATION STATUS -MISSION TRAVEL AUDIT .................................. 23  
ANNEX VI:-IMPLEMENTATION STATUS-PAYROLL AUDIT ................................................ 26  
 
 
 
    
 
     
 
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  ACRONYMS 
 
 
AGSD  Administration and General Services Division 
BCI  Bureau Controle Identification Unit 
CDM   The Chemin Des Mines premises 
CHF  Swiss Francs 
CWR  Centre William Rappard 
DDG  Deputy Director(s) General 
DG  Director General  
DSA  Daily Subsistence Allowance 
GATT  The General Agreement on Tariffs and Trade 
FIPOI   Fondation des Immeubles Pour les Organisations Internationales  
HR  Human Resources 
HRD  Human Resources Department  
HRMS  Human Resources Management System (Oracle) 
IIA  Institute of Internal Auditors 
INFD   Informatics Division 
ITTC  The Institute for Training and Technical Co-operation 
JAC  Joint Advisory Committee 
KPI  Key Performance Indicator(s) 
OIA  Office of Internal Audit 
PO  Purchase Order 
SSA   Special Service Agreement(s) 
SSC   Special Service Contract(s) 
SWR  The Salle William Rappard premises  
WIP   Work in Progress 
WTO  World Trade Organization WT/BFA/W/259 
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  I. BACKGROUND 
1. The OIA, now in its fourth year of opera tion helps the WTO to achieve its objectives by 
performing an independent and objective evaluation of its financial, budgetary control systems and 
processes. It provides recommendations for strengt hening accountability, financial risk management, 
internal controls and governance processes, with the aim of ensuring that the financial resources made 
available to the Organization by its members are us ed efficiently and effectively to obtain the best 
value for money. 
2. The OIA follows the IIA Code of Ethics and the IIA international standards for the 
professional practice of internal auditing. 
3. The Internal Audit charter requires the OIA to present an annual summary report to the 
Director-General, with a copy to  the External Auditor of activitie s undertaken and the progress of the 
implementation of audit recommendations. The report is also presented to the Committee on Budget, 
Finance and Administration. 
4. The OIA is authorised to have full, free and pr ompt access to all records, property, personnel, 
operations and functions within the Organization, wh ich in its opinion, are relevant to the subject 
matter under review. No limitations were placed on the scope of work of the office in the course of 
conducting its work during the period being reported upon. 
II. AUDIT ACTIVITIES 2011 
B. 
AUDIT PLAN 2011 
5. The activities constituting the annual audit pl an for 2011 were brought forward from the 
annual audit plan for 2010. The activities were id entified through interviews and discussions with 
senior management, inquiries and review of various lite rature during the fourth quarter of 2009. This 
approach facilitated the identification of potential ke y risk areas that could have a negative impact on 
the achievement of the objectives of the WTO. The ke y risk areas were then prioritised to come up 
with the audit plan for 2010 and subsequently the audit plan for 2011 in order to focus limited audit 
resources on the most important areas.   
6. The plan was approved by the DG and issued to senior management in February 2011. It was 
presented to the Committee on Budget, Finance and Administration in June 2011 and it constituted 
the following audited activities; 
(a) Cleaning and maintenance services; 
(b) Security and safety activities; and 
(c) Follow-up audits. 
C. AUDIT OF CLEANING AND MAINTENANCE SERVICES  
7. Cleaning services constitute cleaning, removing trash and the maintenance of WTO premises. 
The audit covered the period 2008 to 2010 and 2011 as appropriate.  
8. The WTO paid CHF 892,000 for cleaning and ma intenance services for the year 2008, CHF 
897,301 for 2009 and CHF 872,148 for 2010.  WT/BFA/W/259 
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  9. The audit was carried out in order to assess the ad equacy of the contract  and compliance with 
the terms and conditions; appraise the general effectiv eness of internal controls instituted by the WTO 
over cleaning services; verify the accuracy and validi ty of payments made to the provider by the 
WTO and appraise the value for money received fro m the provider. The exercise also verified 
accountability of cleaning supplies and adequacy of controls during their procurement. 
10. The audit observed that although the contract with the provider was renewable every two 
years, the provider had been contracted for a pproximately 32 years in succession, first by the GATT 
and subsequently the WTO, exposing the WTO to potential risks in terms of missed opportunities in 
accessing new cleaning innovations available on the market. 
11. In addition, the contract had no clear indication of the cost drivers and how the price of the 
contract was derived; the key performance indicators were not also defined. Such shortcomings posed 
an obstacle in the effective supervision of the cl eaners by the WTO and difficulties in measuring their 
performance. Besides, the provider’s documentati on revealed anomalies resulting in inadequate 
accountability of its activities. Consequently there were indications that the WTO was not getting 
good value for money from the provider. 
12. The audit identified opportunities for improving th e terms and conditions of contract to meet 
the changing needs of the WTO and to enhance compliance by the provider with the terms and 
conditions of contract. Furtherm ore, recommendations were made to: improve the adequacy and 
clarity of the contract and eliminate any vagu eness; open up the competition to other cleaning 
providers; improve efficiency in operations and obtain better value for money from the provider.  
13. In June the OIA issued a report to the DG with 31 recommendations, of which 25 were 
significant in nature due to the negative impact on the achievement of the contracted objectives and 
subsequent risk exposure to the WTO. 
14. Subsequently, a facility management specialist in  procurement was contracted to review the 
contract with the provider.  
15. A further assessment of the provider's performan ce by the WTO during the last half of the 
year revealed an unsatisfactory level of pe rformance despite measures taken to encourage 
improvement. The WTO was left with no choice but  to initiate a new tendering process for cleaning 
and maintenance services. 
16. Following the competitive exercise of Oct ober-November 2011, the WTO entered into a 
contract with a new provider for a 3-year period effective January 2012.  
17. Consequently, audit recommendations with sp ecific concern to the performance of the 
previous provider have been closed and 19 r ecommendations with a potential influence on the new 
provider's activities and contract management have  been retained for further follow-up in 2012. 
Annex II shows a summary of the recommendations. 
D. AUDIT OF SECURITY AND SAFETY ACTIVITIES  
18. Following a tendering process in 2009, the provider of security and safety services was 
contracted for a period of four years up-to 31 August 2013. 
19. The contracted services include access control,  interventions and surveillance of the WTO 
premises and car parks. The contract has well spelt out yardsticks or KPIs to measure the performance of the provider in different areas of operation.  WT/BFA/W/259 
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  20. The audit covered the period September 2009 to December 2010 and 2011 as appropriate. 
CHF 4,253,890 was paid for security and safety services for the period January to December 2009 while CHF 3,900,471 was paid for the period January to December 2010. 
21. The objectives of the audit were to assess and evaluate: the adequacy of the contract and 
compliance with the terms and conditions by both the provider and by the WTO; the efficiency and 
effectiveness with which security and safety operatio ns are carried out; the internal controls in place; 
the integrity and reliability of various documentation; and the value for money received from the 
provider. The audit also verified the recording, control, safeguard, existence and accountability of 
security and safety inve ntory and equipment. 
22. Although the audit did not have the capacity to adequately verify security and safety activities 
of a technical nature, some good internal contro ls were observed to be in place for example 
continuous rotation of security guards during th e day, controlled access to a 24 hour security hub 
(control room) and roll call and early morning briefing sessions for security guards on a daily basis during the week. However there were indications that the management and supervision of the 
operations could be enhanced  to improve controls, mitigate any pos sible risks, improve efficiency and 
effectiveness and obtain better value for money from the provider.   
23. The audit also noted other areas for improveme nt including: compliance with the terms and 
conditions of contract by both the WTO and the provider and imposing penalties for non-compliance; 
management, planning, supervision of operations  and resources; consiste ncy and reliability of 
documentation from the provider; and usage, storage and accountability of security and safety inventory and equipment.  
24. A report on security and safety activities was issued in November with 24 recommendations, 
of which 21 were significant due to the nature of  the financial and operational effects and subsequent 
risk exposure on the WTO. Follow-up audits to verify the implementation of recommendations are 
scheduled to take place in 2012. Annex II I shows a summary of the recommendations. 
E. F
OLLOW -UP AUDITS  
25. The Internal Audit charter requires the OIA to  establish and maintain follow-up systems to 
determine whether effective remedial action has be en taken and to periodica lly report on situations 
where adequate and timely corrective action has not been implemented.  
26. The OIA undertook eight follow-up audits, two on procurement, two on mission travel two on 
payroll activities and two on ITTC admini strative and logistical support activities. 
27. Procurement Audit 
(a) Two follow-up audits were carried out in September and December respectively to 
verify the implementation status of forty-one recommendations from an audit of November 2008.  
(b) According to the results of the follow- up audits, there is a 6% increase in 
recommendations that have b een implemented or closed from 80% in December 2010 
to 86% as at 31 December 2011. The incr ease is a result of a 2% increase in 
recommendations that are in the process of being implemented (WIP) from 9% in December 2010 to 11% as at 31 December 2011and a corresponding 8% decrease in the recommendations that are still open and not yet implemented from 11% to 3%.   WT/BFA/W/259 
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  (c) The improvement in implemented recommendati ons is mainly attributed to a better 
process in the custody of contracts and a competition exercise for providing office 
supplies which resulted in soliciting a new pr ovider with better definition of office 
needs.  
(d) The main outstanding item but with evident work in progress remains the 
implementation of the Oracle iprocurement module which is due to be implemented 
in a test environment and validated by the working group in January 2012. The module is expected to: address and improve the procurement work flow including ownership and  accountability of the requisitioning process and purchase order 
approval process; establish a receipt of goods workflow and approval process; and 
determine and document the persons responsib le for approving the budget to be spent 
including any value limits. 
(e) The open items constituting 3% as at 31 D ecember 2011consist of long-term items 
that are either a consideration for futu re audit or pending the completion of the 
reconstruction project. 
(f) Below is a graphical representation of the progress made in implementing corrective 
measures at different dates. Also See Annex IV for an overview of the recommendations that are still outstanding, that is, either WIP or open and their 
implementation status as at 31 December 2011.  
 
28. Mission Travel Audit 
(a) Two follow-up audits were carried out in Ju ly and December respectively to verify 
the implementation status of twenty-thr ee audit recommendations from an audit of 
October 2009. 
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  (b) Results of the follow-up audits indicate a 26% increase in implemented or closed 
recommendations from 31% in December 2010 to 57% as at 31 December 2011. The 26% increase is due to a 13% decrease in recommendations that are in the process of 
being implemented from 52% in December 2010 to 39% as at 31 December 2011 and a13% decrease in the recommendations that  are still open and not yet implemented 
from 17% to 4%.  
(c) The progress in implemented recommendations was due to the establishment and 
implementation of a detailed policy to fo rmalize and harmonize expenses covered by 
the WTO for participants attending WT O-funded training courses, seminars, 
symposia and workshops. In addition, in orde r to optimize the use of the online travel 
tool (etravel), it was enabled to allow sta ff to attach documents electronically when 
requesting to travel for example invitation letters, itinerary etc. 
(d) The main outstanding item, and which is work in progress is the revised travel policy 
which is mainly aimed at: enhancing pr ocedures and policies for the planning and 
reimbursement of business travel and related expenses; ensuring more efficient use of 
WTO financial resources; and allowing fo r more effective expense control. The 
revised policy was sent out to divisions in  October 2011 for comments and it is still 
under review by management. 
(e) Below is a graphical representation of the progress in implementing the audit 
recommendations at different dates. Annex V portrays the implementation status of 
outstanding recommendations both WIP and open as at 31 December 2011.  
 
29. Payroll  Audit 
(a) Two follow-up audits were carried out in A ugust and December respectively to verify 
the implementation status of thirty-three recommendations from the audit of June 
2010. 
(b) Pursuant to the follow-up audits, there was an increase in the implemented or closed 
recommendations by 33% from 6% in December 2010 to 39% as at 31 December 2011. The increase was a result of a 9% decr ease in recommendations in the process 
 WT/BFA/W/259 
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  of being implemented from 61% in December 2010 to 52% as at 31 December 2011 
and a 24% decrease in recommendations that are still open and which remain to be implemented from 33% to 9%. 
(c) Recommendations that were implemented incl ude: regular posts that were occupied 
by consultants on a long-term basis being advertised and filled; HRD getting involved 
in the approval of  requisitions for consultants in order to keep track of  their 
recruitment; reviewing the access of confiden tial information across the Secretariat; 
improving the amount of time taken to f ill vacant positions; nominating and training a 
first line support person in Finance to ta ke over the ownership, management and 
accountability of the HRMS payroll from Informatics; a review of access rights by 
Budget and Finance section in order to limit access to the HRMS payroll data to only 
those staff with a direct obligation to deal with the data; and  a review of the Budget 
and Finance functions for better segregation of duties. 
(d) Below is a graphical representation of the progress in implementation of audit 
recommendations at different dates. Anne x VI portrays the recommendations and the 
implementation status of outstanding re commendations as at 31 December 2011.  
 
30. Audit of ITTC administrative and logistical support activities  
(a) Two follow-up audits were carried out in Ju ly and December respectively to verify 
the implementation status of twelve a udit recommendations that were made in 
December 2010. 
(b) Pursuant to the follow-up audits, 50% of the recommendations were implemented or 
closed as at 31December 2011, 17% were in  the process of being implemented and 
33% were still open and yet to be implemen ted but with an action plan to do so. 
(c) The implemented recommendations include: a review of the need for short-term 
contracts within ITTC; a reduction in travel by different Units within ITTC including the elimination of unjustified travel; a nd discontinuation of cash carrying with 
payments now made to participants th rough Western Union and in countries where 
WT/BFA/W/259 
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  this is not possible payments are made by bank transfer, credit card or through partner 
institutions as relevant. 
(d) The main outstanding item remains the restructuring of the Logistics Unit in order to 
integrate the administrative and logistical support activities under one Unit and re-profiling the jobs of relevant staff. The task  is foreseen for the first quarter of 2012 by 
the new Director of ITTC. 
F. 
DELEGATION OF AUTHORITY , RESPONSIBILITY AND A CCOUNTABILITY MATRIX  
31. The OIA continued to work on a document outlin ing the delegation of authority within the 
WTO for the information and guidance of the WTO staff in fulfilling their obligations. The document 
was modified during the year to detail responsib ilities falling under each delegated authority thus 
coming up with a 'delegation of authority, res ponsibility and accountability matrix'. Those with 
delegated authority are expected to exercise adequa te control in carrying out  the delegated functions 
and are answerable and accountable for their actions.   
32. The document was sent out to divisions for thei r review, comments and input. Feedback will 
be validated and incorporated into the matrix and made  available to all staff on the intranet in the first 
half of 2012. It will be update d continuously to incorporate info rmation on new areas and future 
changes in authority, responsibility and approval levels. 
33. As already indicated in the previous annual report and in compliance with the IIA audit 
standards, the OIA will refrain from appraising the delegation of authority, responsibility and 
accountability matrix and its contents . This is due to the OIA's initia tion and responsibility undertaken 
in the compilation and update of the matrix and to  avoid any conflict of interest and the presumption 
of impairment in objectivity. For the time being, the appraisal of the delegation of authority matrix 
will be left with the External Auditor. 
G. FRAUD POLICY  
34. The OIA, Legal and Human Resources have jo intly produced a draft policy statement on 
ethics, fraud and other values and principles pres cribed under the WTO code of conduct. The 
statement, with illustrations through examples, will be circulated to staff after approval by 
management during the first half of 2012. More aw areness training is foreseen for the second half of 
2012. 
III. OTHER ACTIVITIES 
35. In May, the Head of the OIA was appointed by the Director-General to an adhoc joint 
advisory body (JAB) pursuant to regulation 11.3 of the WTO staff regulations to examine the possible 
application of a disciplinary measure against a memb er of staff. The adhoc JAB submitted its report to 
the Director-General in July. 
IV. INTERNAL AUDIT RESOURCES 
36. With the growth in the audit function an d recommendation by the External Auditor, 
management reviewed the structure of the OIA at  the end of 2010. The Administrative Assistant 
position was replaced with a short-term technical staff effective February 2011. From February 
therefore, the OIA consisted of the Head and a short-term Junior Audi tor to help with the 
implementation of the audit plan for the year an d the follow-up of recommendations from previous 
audits. A competition exercise took place during the y ear and the short-term Junior Auditor will be 
replaced with an Auditor in 2012.  WT/BFA/W/259 
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  V. PERSONNEL DEVELOPMENT AND NETWORKING 
37. During the period under review, the Head of  the OIA took part in one conference organised 
by the IIA, participated, collaborated and networke d with other internationa l Organizations including 
Representatives of Internal Audit Services (RIAS) of the United Nations Organizations, Multilateral 
Financial Institutions, and Associated Intergove rnmental Organizations for purposes of bench 
marking the OIA activities, sharing best practices  and for continued professional development which 
is a requirement by the IIA. 
38. The Head of the OIA who is a member of the Association of Certified Fraud Examiners 
(ACFE) acquired a certification in fraud examination, therefore becoming a certified fraud examiner (CFE) in February 2011. The certification should brin g new insights into appraising and interviewing 
skills and a better understanding of ge neral legal aspects as they relate  to audits and investigations. 
VI. CHALLENGES AND OPPORTUNITIES 
39. The OIA has continued to study and understand the different activities to be audited in order 
to come up with relevant recommendations and to  educate the auditees about the audit function. 
40. The Head of the OIA continued to train in th e use of a business intelligence tool, Qlikview for 
purposes of independently extracting and analysi ng financial data from Oracle and testing its 
suitability for audit work of a varied nature. The training and testing will continue in 2012 for both the 
Head of the OIA and the incoming Auditor. 
VII. AUDIT PLAN FOR 2012 
41.  In 2012 the OIA will review the recruitmen t, remuneration and documented guidelines for 
engaging consultants in order to assess the controls in place and appraise compliance and adequacy of 
the guidelines. 
42. The OIA will validate feedback from Director s concerning the delegation of authority, 
responsibility and accountability matrix and incorpor ate any changes. With management's approval 
the matrix will be uploaded on the intranet for use by staff in performing their duties. 
43. The OIA will also carry out follow-up audits  to ascertain the implementation status of 
recommendations pertaining to various audits not ably procurement; mission travel; payroll; ITTC 
administrative and logistical support activities; cl eaning and maintenance services; and security and 
safety activities.  
44. The OIA will also work on ad hoc assignments from management. 
VIII.  CONCLUSION 
45. The audit function has grown and it is now reasonably well established within the WTO. 
During the year the OIA continued to receive th e necessary support from senior management and co-
operation from the auditees. 
46. The OIA will continue to exercise both indepe ndence and objectivity in performing its work.  
 
_______________ 
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  ANNEX I: - SUMMARY OF AUDIT ACTIV ITIES 2008-2011 AND PLANNED FOR 2012 
 
2008 2009 2010 2011
Nature of Audit Activit y
Procurement Audit
Mission Travel AuditPayroll 
Delegation of authority- a global perspective
ITTC administrative and logistical support 
activities
Follow up of audit recommendations 
(Procurement, mission travel & payroll audits)
Audit planning 2010
Audit Activities -2011
Audit of outsourced Services - Cleaning and 
maintenance services
Audit of outsourced services - Security and 
Safety activities 
Work as a member of the adhoc JABContinuous update and validation of delegation 
of authority matrix 
Follow-up audits (Procurement, mission travel, payroll and  ITTC audits)
Training, ACFE 
Audit Activities planned for 2012
Annual Audit report 2011 & planning 2012
Validate and finalize delegation of authority 
matrix 
Audit of consultants
Follow- up audits 
Adhoc audits2012
 
 
   
 
      
   WT/BFA/W/259
 Page 15ANNEX II:-RECOMMENDATIONS-CLEANING AND MAINTENANCE SERVICES AUDIT 
Internal Audit recommendations (June  2011) and responsible Divisions Audit  Rating 
REVIEW THE CONTRACT WITH THE PROVIDER FOR ADEQUACY, TO ELIMINATE VAGUENESS AND TO INCLUDE THE 
FOLLOWING;- 
  
PROCUREMENT SECTION 
  
1. A proper definition of the cost drivers and how the price of the contract is derived. S1 
2. A review of the frequency in submission of the st atus of criminal record s by the provider.  S 
3. A provision to deduct the cost of any fre ed-up space due to the on-going renovation/ex pansion works or freed-up space due to va cant offices 
or those that are unoccupied for long periods of time in order to make savings. S 
4. Consider transferring the responsibility of providing cleaning su pplies to the provider in order to mitigate any wastage and mi s-appropriation 
by the provider- To be advised by Director AGSD. M2 
DIRECTOR AGSD   
5. Liaise with FIPOI to find out its contractual obligations c oncerning cleaning services for its buildings SWR and CDM. L3 
 
6. To decide on making the provider responsible for providing the cleaning supplies. M 
BUILDING AND TECHNICAL SERVICES UNIT (BTS) 
  
7. Ensure that all documents submitted by the provider are up-to da te and submitted within the contracted timeframe e.g. criminal status of the 
cleaners, copy of  third party insurance policy etc. S 
8. Activate an online help request system through which WTO staff can submit requests/feedback on cleaning services and create awa reness of 
its existence among staff. S 
                                                      
1 Significant. 
2 Moderate. 
3 Low.  
  WT/BFA/W/259 
Page 16 Internal Audit recommendations (June  2011) and responsible Divisions Audit  Rating 
ENHANCE SUPERVISION OF CLEANING SERVICES. 
  
9. Emphasize to the provider the requirement and obligation for the cl eaners to register their entry into and exit from WTO premis es.  S 
10. Together with the provider determine the criteria to be used to assess the quality of cleaning activities.  S 
11. Use correct measurements instead of estimat es to determine the space to  be cleaned including any freed-up space. Ultimately ens ure that all 
payments to the provider including any deductions are properly supported and documented. S 
PROCUREMENT OF C LEANING SUPPLIES  
12. Comply with the procurement guidelines and procurement best practice by procuring and replenishing cleaning supplies through th e 
Procurement section. M 
13. Ensure that all purchases of cleaning su pplies are received and acknowledged by WTO Office Supplies and Removals Unit and not b y the 
provider. M 
14. If responsibility of providing cleaning supplies remains with WTO, consider opening up a stock register to record and monitor t he movement 
of stock and use this as the basis for replenishing supplies.  
Maintain a stock level that is sufficient enough to avoid stoc k outs, one that optimises the allocated storage space and avoids  overstocking in 
order to mitigate any misuse, mis-appropriations and thefts . M 
STORAGE OF CLEANING SUPPLIES 
  
15. All storage rooms/cloakrooms and any anticip ated storage space upon comp letion of the renovation and expansion works should hav e 
controlled access. S 
16. Plan for and secure adequate storage sp ace in the renovation and expansion plan. S 
OTHER OBSERVATIONS  
17. Consider the option of having water jars washed under better hygienic conditions. S  
   WT/BFA/W/259
 Page 17Internal Audit recommendations (June  2011) and responsible Divisions Audit  Rating 
BTS UNIT AND SECURITY AND SAFETY SECTION   
18. Jointly work out modalities to ensure that there is a well-planned and systematic sign-in and sign-out of WTO premises by clean ing personnel.  S 
AGSD LOGISTICS  
19. Carry out a cost/benefit analysis and consider replacing the new carpets in the renovated hallways of the South wing of CWR wit h a type that 
is easier to clean in order to mitigate the antici pated rise in the cost of their maintenance. M 
 
 
  
  WT/BFA/W/259 
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ANNEX III:-RECOMMENDATIONS-SECURITY AND SAFETY ACTIVITIES AUDIT 
Internal Audit recommendations (Novemb er 2011) and responsible  Divisions Audit  Rating 
COMPLIANCE WITH THE TERMS AND  CONDITIONS OF CONTRACT 
  
SECURITY AND SAFETY SECTION 
  
1. Carry out an annual assessment of the performance of the provider to ensure that the WTO gets good value for money. S1
2. Ensure that the provider has the required documents on file w ith the WTO as a certification of their skills, work experience, m edical status 
etc. S
3. Request for the third party insurance policy to be filed with the WTO and ensure that it is up-to date in order to absolve the WTO of any 
related risks. S
4. Ensure that all security guards sign the confidentiality statement and this should be on file with the WTO. S
5. Together with the provider, provide the recommended training so that the deployed guards execut e their duties at the contracted  skills 
level. S
6. Together with the provider be more vigilant in supervising and monitoring the quality of performance of the security guards. S 
7. Impose penalties on the provider for failure to meet the contracted KPIs. S
PLANNING AND ORGANIZATION STRUCTURE   
8. Improve the planning and prioritisation of activities in order to  achieve efficient use and optimal allocation of resources. 
 S 
INCONSISTENT AND INCOMPLETE DOCUMENTATION 
  
9. Explore the possibility of recoveri ng from the provider the amount that should have  been deducted in form of penalties for not meeting 
various KPIs. S 
                                                      
1 Significant.  
   WT/BFA/W/259
 Page 19Internal Audit recommendations (Novemb er 2011) and responsible  Divisions Audit  Rating 
10. All copies of monthly summary reports that are sent from the provider should have a signature to signify their validity and aut henticity. S
11. The provider should ensure that information in different activity documents is updated, consistent and authentic. S
12. To avoid possible abuse, all overtime worked by the provider should be properly authorised and documented. S
13. Together with the provider validate invoi ces against supporting documents to avoi d any overpayments and underpayments. S
14. Recover any possible overpayments. S
INVENTORY/EQUIPMENT   
15. Consider relocating the inventory/equipment to another store that is not prone to flooding. S
16. Reconcile the inventory/equipment register with the main database  kept by AGSD and subsequently record all omitted items for pr oper 
control and accountability. S
17. Remove inventory/equipment that belongs to the provider from the WTO security and safety database.  S
18. Locate any missing items. S
19. The WTO supervisor in charge of the inventory/equipment database  should upgrade his knowledge of the database in order to mitig ate 
any risks arising from input errors and be able to train any new person on the functioning of the database. S
20. In consultation with Informatics improve on the inventory software in order to know when items are taken and returned to the st ore and 
improve on accountability. S
ACCESS CONTROL   
 
21. Optimize the use of the available se curity and safety equipment. M2 
22. Create awareness on where the vi sitors' badges should be returned after the BCI closes. M 
                                                      
2 Moderate.  
  WT/BFA/W/259 
Page 20 Internal Audit recommendations (Novemb er 2011) and responsible  Divisions Audit  Rating 
23. Review guidelines on the use of WTO email accounts by the provider to avoid mis-use. Together with Informatics ensure that emai l 
access is restricted to the work  of the provider while at the same time ma intaining traceability and accountability of actions of the 
provider.  M 
OTHER REQUIREMENTS  
24. Draft a policy for approval by management, on the use of video cameras and other tracking and investigative devices that are be ing used 
in the WTO. Consider including guidelines on carrying out various investigative activities else include these in a separate pol icy 
document.  S 
  
   WT/BFA/W/259
 Page 21ANNEX IV:-IMPLEMENTATION STATUS-PROCUREMENT AUDIT   
OUTSTANDING ITEMS AS AT 31 DECEMBER 2011 
 
Internal Audit recommendations  (N ovember 2008) and responsible  
Divisions Implementation status as reported by the impl ementing Division and v erified by Internal 
Audit 
Status date  Implementation status 
PROCUREMENT   
1. Creating and managing a database for the providers and managing 
the relationship with providers. 31.12.11  
WIP 
 A working group was created between the Finance and Procurement Section in 
order to streamline the vendor database and to make it more efficient. 
Discussions have commenced to define and put in place a new procedure as soon 
as possible. 
 
BUDGET AND FINANCE   
2. Define, document and implem ent the acceptable format and 
criteria for receiving goods and certifying work done. Utilise 
delivery reports or a goods r eceived stamp for acknowledging 
receipt of goods and ce rtifying work done. 
 31.12.12   
WIP  
 
 
 I-procurement, an Oracle module that incl udes a receipt of goods workflow and 
approval process was ready for test users at the end of the year. Testing is 
scheduled for January 2012. 
 
To close observation after finalising the invoice policy and satisfactory 
implementation of iprocurement. 
 
PROCUREMENT, BUDGET AND FINANCE    
3. Establish clear ownership and acc ountability of the requisitioning 
process and PO approval process. 31.12.11 
WIP  On the procurement side, this is addressed in the procurement policy and the 
manual. 
 
On the Budget and Finance side, the work on the iprocurement module and the 
implementation of the work flow is expected to address the concerns raised here. 
To close observation after satisfactory implementation of iprocurement. 
 
N.B. Approximately half / 0.5 of this item therefore remains outstanding. 
  
  WT/BFA/W/259 
Page 22 Internal Audit recommendations  (N ovember 2008) and responsible  
Divisions Implementation status as reported by the impl ementing Division and v erified by Internal 
Audit 
Status date  Implementation status 
INFORMATICS   
4. Activate: 
i. The purchase requisition module (Oracle). 
ii. 'The delivery of goods' feature of the Procurement module 
(Oracle).   
31.12.11 
WIP  
 
 The solution iProcurement (purchase requisition, delivery and invoice approval 
functions), has been implemented in a test environment and is ready for the tests 
and validation by the working Group. 
5. Explore the possibility of utilising the Oracle stock/inventory 
module to monitor the different types of stock in WTO 
(Reproduction, Economat, IT, AGSD , Publications) for uniformity 
and consistency. 31.12.11 
Open 
 (Long-
Term)  After discussions with various stakeholders, item to be  proposed and considered 
for future audit to address WTO inventor y and assets, the recording, verification 
of their existence, inventory/asset management guidelines, ownership, the use of 
different databases by Divisions, among others. 
LEGAL   
6. Review the adequacy of staff regu lation 1.9 'solicitation or receipt 
of gifts or favours between vendors and employees', and include 
the means of sensitisation and communication to employees and 
vendors. 31.12.11 
WIP  
 
 After comments were received from "main users", Legal Counsel (LC) and the 
OIA agreed to merge the OIA draft policy on fraud and the LC draft ethics 
guidelines in a single, user-friendly yet binding document for circulation to staff. 
The plan is to finalize this document during the first half of 2012. Issuance of the 
document should be followed by staff information workshops in order to increase 
awareness to ethics and fraud issues.  
The WTO will host the UN Ethics Network annual meeting at its headquarters in 
May 2012. This should generate additio nal interest in ethics issues among 
Secretariat staff.  
AGSD LOGISTICS   
7. Plan for adequate storage space for Reproduction stock after the 
renovation and construction of CWR.  31.12.11 
Open 
(Long-
Term)  This is part of the terms of reference for the construction project. We will have a 
better picture of the storage situation with in the entire WTO single-site structure end 
of 2012. 
Approximately 85m2 is to be allocated as storag e space for reproduction (Roneo) 
stock and machinery in the new building. 
 
N.B. Approximately 0.2 of this item remains outstanding. 
  
   WT/BFA/W/259
 Page 23ANNEX V:-IMPLEMENTATION STATUS-MISSION TRAVEL AUDIT 
OUTSTANDING ITEMS AS AT 31 DECEMBER 2011 
 
Audit recommendations (October 2009) and responsible Divisions  
 Implementation Status by the implementing Division and v erified by Internal Audit 
Status date  Status update  
DG AND MANAGEMENT   
1. Decide whether DSA reimbursement should be based on actual cost 
100%  with supporting receipts, partial cost ,  that is, cost of the 
hotel + 50% DSA or consider the DSA as given, to be a lump sum  
to cover all expenditure liable to be incurred by officials on an 
official journey.  31.12.11 
WIP 
 Item is a consideration of the revised tr avel policy which is still in draft form.
To verify compliance when the new trav el policy is in force and communicated 
to all staff. 
BUDGET AND FINANCE    
2. Invoice sponsoring bodies, with outstanding amounts. 31.12.11 
WIP 
  A new policy for invoicing sponsoring bodies has been established and is going 
to be sent to the divisions. Budget and Finance Section (BFS) is now invoicing 
the third parties. A regular follow-up is going to be done by BFS. Internal audit 
to follow up enforcement of the new policy. 
3. Reimburse terminal expenses based on receipts up to a specified 
maximum amount to be agreed. 31.12.11 
WIP 
 The revised Travel Policy that was submitted to divisions for comments and 
feedback contains more specific requir ements regarding terminal expenses. 
ADMINISTRATION AND GENERAL SERVICES   
4. Review and amend the admin. memorandum (policy guidelines) to 
include the following: 
 
- Prov. 41 - To debit the receivab le account and not budget account, 
failure to recover, then debit Division budget or write off as 
appropriate; 
- Prov. 41- To include invoicing of outside financing bodies by 
Finance; 
- Prov. 6 - Travel requests for Directors to be approved by respective 
DDGs and those of DDGs to be approved by DG's office; 
- Prov. 6 - To include requirement to attach invitation letters where 
applicable; 
- Prov. 31 to incorporate all a pplicable DSA rates to include 30.12.11 
WIP  The draft policy was sent out to Divisions on 24 October for comments. 
Progress to be monitored.   
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Page 24 Audit recommendations (October 2009) and responsible Divisions  
 Implementation Status by the implementing Division and v erified by Internal Audit 
Status date  Status update  
Appellate body members, Panellists, Consultants; 
- To specify all the different cate gories of officials to whom the 
Memorandum is applicable; 
- A documented criteria for evalua ting all forms of mission travel 
under the regular budget e.g. business case or summary mission 
report upon return; 
- A consistent and clear definition of  the ‘necessary documents’ to be 
attached to travel claims includi ng the purpose of each document; 
- A more detailed breakdown of the DSA components e.g. 15% per 
meal etc. 
- Clarify Management's agreed d ecision of accountability for DSA 
reimbursement. 
 
INFORMATICS   
5. Provide Internal Audit with a to ol for extracting and analysing 
different types of data independently and accurately. 31.12.11 
WIP Training and testing the appropriateness of the tool (Qlikview) for audit work 
of a varied nature is still on-going. Incoming Auditor to also undergo training 
and to evaluate the appr opriateness of the tool. 
6. Optimise the use of e-travel by extending it to areas applicable to all 
logistics for mission travel covering Regional and Technical 
Assistance activities funded from Extra-budgetary funds. Consider 
sending attachments e.g. list of participants, budget estimates etc. 
electronically via e-travel for appr oval to reduce on processing time, 
minimise the printing of hard copies and help streamline logistics 
activities. 31.12.11 
Open 
 
 
 
 
 To be followed up by the OIA after the streamlining of logistics activities 
within ITTC Division. 
  
   WT/BFA/W/259
 Page 25Audit recommendations (October 2009) and responsible Divisions  
 Implementation Status by the implementing Division and v erified by Internal Audit 
Status date  Status update  
ITTC   
7. In collaboration with Budget an d Finance Section, agree for 
approval, DSA rates and other entitlements applicable to 
participants and outside consultants. Incorporate in practical guide. 31.12.11 
WIP  A policy on 'expenses relating to WTO-funded training courses, seminars, 
symposia and workshops' was approved and implemented effective January 
2011. 
Amounts paid to participants were verified to be in compliance with the policy. 
The OIA to monitor incorporation of the policy into the ITTC practical guide 
which is still outstanding. 
 
8. Request Informatics to automate the requisition and approval 
process of logistics activities mentioned in no.6 above.  31.12.11 
WIP   Though progress towards the automation of the requisition and approval 
process of logistics activities was noted, the OIA  is of the view that the 
logistics activities within ITTC should first be streamlined in compliance with 
the recommendation made per ' audit of ITTC administrative and logistical 
activities' of 2010 in order to realize efficiency gains.  
ALL DIVISIONS   
9. To follow up outstanding amounts due from outside financing 
bodies and update Finance accordingly. 31.12.11 
WIP  Admin. Assistants were informed by email on 16 January 2012 of the 
procedure to follow in case of sponsoring by outside financing bodies. The 
OIA is to follow-up enforcement of the new policy. 
10. All employees travelling on mission should attach original boarding 
passes and original hotel receipts to travel claims. 31.12.11 
WIP  To verify compliance when new travel policy is in force and communicated to 
all staff.  
  WT/BFA/W/259 
Page 26 
ANNEX VI:-IMPLEMENTATION STATUS-PAYROLL AUDIT 
             OUTSTANDING ITEMS AS AT 31 DECEMBER 2011 
 
Internal Audit recommendations (June 2010) and responsible  Divisions Audit 
Rating Implementation status as reported by the implementing Division and 
verified by Internal Audit 
Date Status update
HUMAN RESOURCES DIVISION 
    
1. Nominate a HRD super user and possible back up to take over 
ownership, management and accountab ility of the HRMS data and staff 
head count from Informatics. S1 31.12.11 
WIP Training took place for relevant HRD staff and a 
comprehensive report was produced. 
HRD hired a Head of HR Opera tions, whose role includes the 
management and responsibility of the Human Resources Information Systems (HRIS), incl uding Oracle. He will assume 
and oversee /manage the HRD Su per-user function, ensuring 
appropriate skills and back-up amongst the team.  
2. Review HRMS data access rights a nd limit access only to staff with a 
direct obligation to deal with the HRMS data. S 31.12.11 
WIP  Standard template has been developed that would be sent out 
from HRD to all relevant services (AGSD, INFD) to control 
and restrict access.  Audit advised that the HRD standard working template and 
process should be discussed further with Budget and Finance 
and Informatics respectively in order to avoid duplication and 
to come up with agreeable and workable controls over HRMS 
data access rights.  
3. Organise a training/awareness on "ethics" to address the treatment of 
sensitive and confidential information. S 31.12.11 
WIP  HRD has worked on a draft training document on 'code of 
conduct'. To coordinate with Legal Counsel and the OIA on 
this.   
4. Review access to HRD archives and limit  entry to those staff with a vital 
necessity to have access to the personnel files. S 31.12.11 
WIP 
 A confidentiality statement has been prepared to be signed by 
all HRD staff. Responsibility for access will be maintained 
with Head, HR Operations.  
                                                      
1 Significant.  
   WT/BFA/W/259
 Page 27Internal Audit recommendations (June 2010) and responsible  Divisions Audit 
Rating Implementation status as reported by the implementing Division and 
verified by Internal Audit 
Date Status update
5. Review the rates that are being used to pay translators with SSC/on-site 
contracts, who work from home, if  acceptable, have them officially 
documented and approved by management. S 31.12.11 
Open  
 
 Lead Compensation Specialist, will undertake a broader review 
of SSC rates and provide recommendations for any changes or 
approvals to senior management.  
 
6. Review the guidelines for short-term contracts to determine the 
maximum acceptable number of renewa ls and the criteria for assessing 
the need for renewal in order to promote the use of short-term contracts 
as intended. S 31.12.11 
WIP 
 HR has identified priority projects (e.g. short-term contracts for 
translators and interpreters) in order to reduce the number of 
renewals. Planned implementation of Divisional Output Plans 
is also assisting in ensuring short-term contracts are time bound 
as per identified outputs/projects. 
 
7. Review the need for short-term staff in Divisions where short-term staff 
remain for long periods above the agreed acceptable number of 
renewals. S 31.12.11 
WIP  
 
  
 
  On-going, some short-term contracts confirmed to have been 
ended already with no furthe r renewal. Also see comment 
under no. 6 above.  
  
 
8. Review the overtime and compensation guidelines to reflect the current 
and acceptable situation under which overtime is worked and a meal 
allowance that is reflective of the current economic situation. Have the guidelines approved by management and post them on the intranet in 
order to promote transparency. M
2 31.12.11 
WIP  The overtime policy priorities have been further updated in 
light of the economic situation. Final draft of policy will be 
submitted to Senior Management for approval to proceed to the JAC. 
9. Retention policy - Review the policy and provide guidelines on what 
documents should remain on file and what should be discarded when staff exit the organization for purposes of uniformity and consistency. L
3 31.12.11 
WIP  
 HRD has reviewed and finalized the file retention policy and 
determined the next steps for e-archiving to be implemented and finished during 2012. 
                                                      
2 Moderate. 
3 Low.  
  WT/BFA/W/259 
Page 28 
Internal Audit recommendations (June 2010) and responsible  Divisions Audit 
Rating Implementation status as reported by the implementing Division and 
verified by Internal Audit 
Date Status update
10. Benchmark with similar organizations to emulate best practice for 
recruiting consultants. S 31.12.11 
WIP  
 HR has become increasingly informed of consultancy contracts 
across Divisions since taking over responsibility for the Staff 
Requisition process. HRD has identified a process for ensuring 
a fast track recruitment process is in place for short-term and 
consultancies (in line with comparator organizations, e.g. 
OECD, WEF) to  enable a merit based roster system to be set 
up during 2012. 
11. Understand the need for consultants by the different Divisions. Review 
the recruitment process for consultants and guidelines in order to 
streamline the process and ensure consistency in application of terms and conditions. S 31.12.11 
WIP  
 See comment under no.10 above. The OIA to continue 
monitoring progress including the review of guidelines for 
recruiting consultants. 
12. Establish a database of pre-qualified consultants in consultation with the 
Divisions to monitor, follow up and evaluate the use and benefits of 
engaging consultants. S 
 
  
 31.12.11 
WIP 
  
 See comment under no.10 above. The OIA to continue 
monitoring progress in 2012. 
13. Take the leading role in controlling and managing the movement and 
remuneration of consultants and other staff between different contracts of employment to ensure compliance with the recruitment guidelines of 
the Organization and the required competition for employment. S 31.12.11 
WIP  
 HR will continue to review and monitor each request and 
ensure compliance with the guidelines. The OIA noted a 
reduction and improved control in the movement between 
various contract types in 2011. 
14. Ensure that all Divisions comply with laid down SSA guidelines for 
engaging consultants. S 31.12.11 
WIP  
 HR will continue to review and monitor each request and 
ensure compliance with the gui delines. The OIA to continue 
monitoring progress including the review of guidelines for 
recruiting consultants.  
AGSD, BUDGET, FINANCE AND PAYROLL UNIT 
    
15. Review the draft payroll manuals for adequacy, in particular review the 
definition of roles and responsibilities to be more elaborate and specific, give examples of payments and focus on a reduction in copies of 
documents being printed in a bid to move towards a paperless 
environment. Have the manuals approved as final versions. M 31.12.11 
WIP  A payroll policy is under final review and is going to be sent 
for signature in January 2012.  
   WT/BFA/W/259
 Page 29Internal Audit recommendations (June 2010) and responsible  Divisions Audit 
Rating Implementation status as reported by the implementing Division and 
verified by Internal Audit 
Date Status update
INFORMATICS 
    
16. Release full ownership, management and accountability of the HRMS 
data and payroll to HRD and Payroll Unit respectively. Only enable, 
support and fix technical HRMS data and payroll problems. S 31.12.11 
WIP 
 Full ownership, management and accountability now released 
to Finance (payroll unit) and in progress to the newly recruited 
Head of HR Operations.  
17. Provide nominated super users from HRD and payroll Unit with 
appropriate training in order to reinforce ownership, management and 
accountability of their respective functio ns and be able to provide first 
level support. S 31.12.11 
WIP 
 A global training was done in 2011. A follow-up of this 
training for HRD was scheduled late 2011 but cancelled and to 
be re-scheduled in 2012. 
18. Review access rights of Informatics st aff to the HRMS data and payroll 
and limit access rights appropriately. S 31.12.11 
WIP 
 
 Progress noted by Budget and Finance and HRD. The OIA 
advised that Informatics should liaise with Budget and Finance to come up with a workable and agreeable process concerning 
access rights. The OIA to con tinue monitoring progress. 
 
19. Keep track of consultants, Panellists and Appellate body members 
employed by the Organization in form of a central register. S 31.12.11 
Open  
  
 Integration of population delayed due to workload. The 
integrations of these populations are planned ASAP and to 
work with HRD on this. 
ALL DIVISIONS 
    
20. Comply with the SSA guidelines for consultants after they have been 
reviewed and approved by management. S 31.12.11 
 Open  
  
 
 
__________