. /. 
    WORLD TRADE  
ORGANIZATION  WT/BFA/W/164 
22 November 2007 
 (07-5136) 
Budget on Committee, Finance and Administration  
  
 
USE OF 2006 SURPLUS 
 
 
1. It is recalled that the General Council a pproved a recommendation of the Committee on 
Budget, Finance and Administration in December 2006 to create a Restructuring Operating Fund 
which would provide an amount of CHF 1.5 million for restructuring in the Secretariat.
1  Use of the 
funds would be available until the end of 2007. 
 
2. It is also recalled that the 2006 audited account s of the WTO produced a credit balance in the 
Surplus Account of CHF 6,996,223 (WT/BFA/W/157, Statement 3), and that, in accordance with 
WTO Financial Regulation 26, paragraph 3, the Di rector-General is to make proposals to the 
Committee on Budget, Finance and Administration with regard to its use.2 
 
3. In view of the fact that on-going negotiations  in the WTO have prevented finalization of the 
restructuring plan, the Dir ector-General proposes that: 
 
a) the amount of CHF 1.5 million currently in the Restructuring Operating Fund be 
returned to the 2007 accounts, which will in crease the 2007 budgetary surplus and have 
a positive effect on the Surplus Account for 20073; 
 
b) an amount of CHF 1.5 million be made available from the credit balance in the 2006 
Surplus Account to finance the restructuring pl an in 2008.  The plan is to be finalized 
by 1 July 2008 and implementation complete d by 31 December 2008, after which any 
un-used funds will be returned to the WTO accounts;  and 
 
                                                      
1 "The Committee recommends to the General Council that, in light of the fact that developments in the 
course of 2006 have precluded the finalization of a restructuring plan, a Restructuring Operating Fund be created and the funds foreseen for this purpose in 2006 and 2007 be transferred thereto, on the understanding 
that (i) any balance in the fund at the end of 2007 will be returned to the 2007 budget and (ii) the policy outlined 
in WT/BFA/W/137 would apply." (WT/BFA/93/Add.1). 
 
 2 "26.3. 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 Administration 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 Member's contributions; 
 (ii) transfer to the Working Capital Fund;  or 
(iii) use for any other purpose decided upon by the General Council." WT/L/156/Rev.2, Regulation 26, 
paragraph 3). 
 
3 The final results of the 2007 Su rplus Account will only be known af ter closure of the 2007 accounts, 
it being recalled that an important element in the Surplus Account is the provision for contributions in arrears. WT/BFA/W/164 
Page 2  
 
  c) the remainder of the credit balance in the 2006 Surplus Account, i.e. CHF 5,496,223, be 
used in accordance with Financial Regulation 26, paragraph 3, as application as income 
against the budget for the second financial pe riod following that in which the surplus 
occurs, thereby reducing Member's contributions." 
 
4. The Committee may therefore consider the following recommendation: 
 
 The Committee recommends to the General Coun cil that the credit balance in the 2006 
Surplus Account amounting to CH F 6,996,223 be utilized as follows : 
 
a) CHF 1,500,000 will be made available from the credit balance in the 2006 Surplus 
Account to finance the restructuring plan in  2 0 0 8 .   T h e  p l a n  i s  t o  b e  f i n a l i z e d  b y  
1 July 2008 and implementation complete d by 31 December 2008, after which any 
un-used funds will be returned to the WTO accounts;  and  
 
b) CHF 5,496,223 be used in accordance with Financial Regulation 26, paragraph 3, in 
application as income against the budg et for the 2008, thereby reducing Member's 
contributions.  
 
 
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