RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/80 
25 November 2005 
 (05-5599) 
Committee on Budget, Finance and Administration  
  
 
 
REPORT OF THE MEETING HELD ON 29 SEPTEMBER 2005 
  
1. The WTO Committee on Budget, Finance and Administration met on 29 September 2005 
under the chairmanship of Mr Jan-Meinte Postma fro m the Netherlands.  The terms of reference and 
composition of the Committee are set out in documen t WT/L/44/Rev.1.  The agenda contained in 
document WTO/AIR/2652 was adopted. 
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 
31 AUGUST 2005 
A. 
CASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS  
B. CONTRIBUTIONS OF OBSERVER COUNTRIES TOWA RDS THE COST OF SERVICES PROVIDED BY 
THE SECRETARIAT  
C. INSTALMENT PAYMENTS FOR COUNTRIES IN ARREARS (CONTRIBUTIONS FROM 1987  AND 
EARLIER YEARS ) – PROGRESS REPORT  
D. SCHEME TO FACILITATE THE PAYMENT OF PRE -1988  ARREARS – PROGRESS REPORT  
2. A member of the Secretariat presented the cash  situation, the statement of outstanding 
contributions from Members as at 31 August 2005, a nd a statement regarding the contributions of 
Observer countries towards the cost of services provide d by the Secretariat.  As at the reporting date, 
the total of funds available at CHF 49 million was higher  by 29 per cent than at the same date in 2004.  
Contributions received from Members amounted to CHF 126 million, while those from the Observers 
amounted to CHF 591,000.  One Member, Tanzania, benefited from the scheme to facilitate the 
payment of its arrears from 1980 to 1987 in accord ance with document L/7483, paragraph 21.  The 
Working Capital Fund stood at CHF 9.1 million at 31 A ugust 2005.  Since the date of the report, the 
following Members had made payments:  (i) Bangladesh , (ii) Cameroon, (iii) Costa Rica, (iv) Egypt, 
and (v) Ghana.  One Observer, Cape Verde, also made a payment toward the cost of services provided 
by the Secretariat.  In addition, the attention of the Members was drawn to the fact that the 
organization could face a difficult cash situation from November if contributions were not received.. 
3. The Chairman of the Committee on Budget, Finance and Administration presented his report 
with regard to the letters written to the Members with  three or more years of contributions outstanding 
(Category IV) and informed the Committee that toge ther with the chairperson of the General Council, 
meetings would be arranged with Me mbers in arrears in order to find a solution.  At a later stage,  
consideration might be given to extending the measur es applicable to countries with more than three 
full years' outstanding contributions.  Finally, the atte ntion of the Members was drawn to the fact that 
representatives of countries with outstanding contributi ons for more than one full year after the end of 
the financial year could not be nominated to  preside over WTO bodies (document L/6384). WT/BFA/80 
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 E. 
HUMAN RESOURCES MATTERS  
4. A member of the Secretariat introduced (document CRP(05)18) and informed the Committee 
that a working group had been established to identify and develop on-going learning needs in 
divisions.  In addition, a training site on the HRD intranet including learning events was about to be finalized and an on-line induction course was being developed.  Executive coaching activities had also 
been organized.  In collaboration with an extern al consultant, on-line course evaluations, employee 
satisfaction and market research surveys had been developed to assess the impact of the learning 
activities to the staff.  The HRD's objective was to measure the organization's investment in training 
and determine whether or not the orga nization's objectives had been attained. 
5. With respect to staff in the S ecurity and Safety Section, the Committee was informed that the 
one guard who had been requested to communicate his decision by 1 July 2005 finally accepted a 
position of driver in the Infrastructure Section. Four of the 17 temporary guards included in the selection process conducted by Protectas had been selected for the WTO site and eight had been 
retained for other positions within Protectas. Thre e had not been interested in a position with the 
service provider.  Following an internal short-term  vacancy, one of the short-term guards had been 
selected as Security and Safety Team Leader. 
6. With regard to recruitment, 12 posts were currently in the process of being filled. The 
Secretariat indicated that the Junior Professional Officers Scheme could be implemented during the first half of 2006, to which some Members conveye d their reservations over the scope and application 
of this scheme, including possible adverse impact on the chances of representation from the developing countries for professional positions at the WTO. The Chairman indicated that the 
Committee would revert to the outstanding questions in this regard, in relation to other similar 
programmes at a future meeting. 
F. 
PENSION MATTERS  
7. A progress report (document CRP(05)19) was presented by a member of the Secretariat who 
indicated that the Management Board had consider ed possible alternatives to the Swiss real estate 
mandate in the event that the delay caused by th e waiting list to join the selected fund became too 
long, and that a final decision would be taken at the next meeting.  Considering a request for the 
recognition of entitlements for same-sex marriages, th e Board concluded that it would be prudent to 
seek external legal advice before taking considerati on of the matter further.  Finally, the Committee 
was informed that a self-service facility was being de veloped for the services of the Pension Plan that 
should be operational by the end of  October, and that the report of the results of the 2004 actuarial 
valuation would be considered at the next meeting. 
8. The Committee took note of the various reports. 
G. STATUS OF EXTRA -BUDGETARY ACTIVITIES : 
1. Technical Assistance Activity In 2005 
2. Doha Development Age nda Global Trust Fund 
9. Another member of the Secretariat presented documents WT/BFA/SPEC/135 and CRP(05)20.  
Members were informed that contributions to the Global Trust Fund pledged for the year 2005 had 
been remitted except for a small portion of the contri bution of the United States.  In the Global Trust 
Fund, expenditure including the overheads amounted  to 17.6 million Swiss Francs. Approximately 
2 million Swiss Francs out of this amount would be  transferred to five separate funds of Belgium,  WT/BFA/80 
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 Spain, Finland, France and New Zealand which were  all earmarked for specific activities contained in 
the 2005 TA Plan, thus reducing the expenditure level in the Global Fund. 
10. It was further explained that pledged contri butions to the Global Fund amounted to 3.4 
million Swiss Francs. The target amount remained unchanged for 2006, i.e. 24 million Swiss Francs.  
Remaining funds and the new pledges would probab ly cover the 25 per cent reserve required by the 
terms of the Global Trust Fund. 
11. Finally, the attention of the Members was drawn to the fact that contributions of 
approximately 400,000 Swiss Francs were needed for the trust fund established to facilitate the 
participation of LDCs by covering travel costs of their delegates to the 6th Ministerial Conference. 
12. The Committee took note of the report. 
II. FINANCIAL MATTERS 
A. DIRECTOR GENERAL 'S BUDGETARY AND FINANCIAL REPORT FOR 2004  AND REPORT OF THE 
EXTERNAL AUDITOR THEREON  
13. A member of the Secretariat presented document WT/BFA/W/128 and informed the 
Committee that the excess income over expenditu re in 2004 amounted to 3.4 million Swiss francs, 
which resulted in an accumulated deficit of 3 m illion Swiss francs, covered by the Working Capital 
Fund according to Financial Regulati on 26, paragraph 4.  It was pointed out that the accumulated 
deficit was CHF 3 million less than in 2003.  With  regard to the budgetary situation of the WTO 
Secretariat, there had been an under-spending of personnel-related costs amounting to 0.2 million 
Swiss francs, and a budgetary saving of 2.4 milli on Swiss francs on administrative and other costs, 
leading to an overall budgetary surplus of 2.6 milli on Swiss francs.  Nevertheless, transfers between 
sections were requested to cover ove r-expenditure in certain sections by  budgetary savings in others.  
Within the Appellate Body, there had been a budgeta ry surplus of 0.3 million Swiss francs.  It was 
further explained that the replenishment of the Appellate Body Operating Fund had been shown as a 
separate appropriation under the 2004 regular budget and amounted to 1.6 million Swiss francs.   
14. With regard to the report of the External A uditors, it was pointed out that the External 
Auditors suggested establishing a written procedur e for the opening and maintenance of accounts in 
the existing IT accounting system. Secondly, the External Auditors re-stated their previous 
recommendation regarding the implementation of an in ternal audit function within the WTO.  It was 
pointed out by the Secretariat that it was the intentio n of the Director General to address this point in 
the budget proposals for 2006 – 2007. 
B. REPORT ON EXTRA -BUDGETARY FUNDS FOR 2004 
15. Finally, the report on Extra-Budgetary-Funds for 2004 was presented, providing detailed 
information on all extra-budgetary funds in the WT O, both in aggregate and on a fund-by-fund basis. 
16. The Committee took note of the reports and recommends to the General Council the 
transfers between budgetary sections as outlin ed in paragraphs 37 and 41 of document 
WT/BFA/W/128.  The Committee further recommended that th e General Council approve the 
audited accounts for 2004 and convey to the ex ternal auditor their thanks for the valuable 
assistance provided in the audit of these accounts.  WT/BFA/80 
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 C. 
DIRECTOR GENERAL 'S CONDITIONS OF SERVICE  
17. The Chairman presented document WT/BFA/W /135 and informed the Committee that 
following consultations, it appeared  that it would not be unreasonable to adjust the base salary of the 
Director-General by applying the movement of the Geneva Consumer Price Index  (CPI) which would 
be effected on 1st September each year, the first time in 2006, based on the movement of the Geneva 
CPI from the year previous to the adjustment. 
18. The Committee takes note of the current package of the Director-General and 
recommends to the General Council that the ba se salary be adjusted annually on 1st September  
based on the increase, if any, of the Geneva Co nsumer Price Index of the year preceding the 
adjustment.  The Committee further recommends that this annual adjustment function until a 
new Director-General is named.  
D. ORAL REPORT ON SECURITY  
19. The Committee was informed that the service provi der had been deployed at the CWR and the 
Rothschild annexe since 31 July 2005.  Meanwhile, the increase of the operational capacity could be 
recognized by (i) the strengthening of the image of the Organization by the first visual contact with 
the guards, (ii) the establishment of a day and night operator at the Central Security and Safety Post, 
(iii) the establishment of a guard on the lake-side re sponsible for general surveillance and prevention, 
(v) one supplementary guard at the Rothschild anne xe for checking access, (vi) the redeployment of 
staff for effective continuous presence and (vii) th e strengthening of measures for controlling access 
of vehicles and pedestrians. 
20. It was further explained that the work on the Central Security and Safety Post was being 
finalized and would be completed by mid October.  In addition, the concept for the area reserved for 
the Director-General was being studied, but some preliminary work had been undertaken. 
21. Finally, a joint audit of the Security and Sa fety Section and the Swiss Institute had been 
carried out and had revealed the absolute need to improve the evacuation in case of fire at the CWR. 
22. The Committee took note of the progress report. 
E. ORAL REPORT ON NEW WTO ANNEXE  
23. A member of the Secretariat provided an oral progress report on the project of the new WTO 
annexe.  Members were informed that the reco mmendation to increase the budget to 60 million Swiss 
francs had been approved by the General Council in Ju ly in order to cover supplementary costs such 
as security and the creation of archiving facilities.   The tender documents had been completed and 
reviewed together with specialists from FIPOI and legal advisers.   
24. It was further explained that a number of ge neral contractors had been short-listed following 
an international call for expression of interest publis hed in the official press and on the WTO website.  
Six of eight companies replying had been selected as  meeting the tender requirements, and the call for 
tenders had been sent to them on 30 September, and the bids had to be received by 20 December.  The 
examination of the bids to select the best proposal  from the technical and financial point of view 
would take place during the first quarter of 2006. 
25. With regard to the process of approval of the loan in Bern, Members were informed that a 
preliminary decision was expected in that respect in mid-November, and the project would be submitted to the first chamber of the Federal Pa rliament during its spring session, and to the second  WT/BFA/80 
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 chamber during its summer session of 2006.  If both chambers approved the project in its first round, 
the loan would be granted to the WTO at the beginning of summer 2006. 
26. It was recalled that it should be borne in mind that costs for moving and furniture for the new 
building would be included in the budget for 2008. 
27. The Committee took note of the progress report. 
 
POINTS FOR DECISION: Paragraphs 16 and 18 
__________