. /.  WORLD TRADE  
ORGANIZATION  WT/BFA/W/121 
19 October 2004 
 (04-4385) 
Committee on Budget, Finance and Administration  
   
 
INTERIM AUDIT OF FIRST FINANCIAL  
PERIOD OF A BIENNIUM 
  
1. In 2003, the WTO General Council approved
1 a recommendation of the Committee on 
Budget, Finance and Administration2 (CBFA) to introduce, as from the period 2004-2005, biennial 
budgeting in the WTO.  It was noted3 that an interim audit would be made after the first year of the 
biennium.  At that time, Members of the Committ ee indicated their wish to  be informed on the 
question of the interim audit and the tran smission of the results to the Committee. 
 
2. The Committee will recall that, in addition to th e advantages in terms of better planning and 
predictability, the adoption of the biennial approach  was intended to result in a more efficient use of 
time resources for both Members and the Secretariat.  3. In this context, it is pertinent to recall Regula tions 5, 6 (1) and 49 (1) of the revised Financial 
Rules and Regulations of the WTO
4 which concern the implementation of  the biennial approach in the 
WTO: 
 
 
Regulation 5 
 
 The WTO biennium shall consist of two consecutive financial periods covering each year of 
the biennium.  
Regulation 6 
  For every financial period, the Director -General shall prepare budget proposals 
containing estimates of the income and expendi ture of the WTO.  Such revisions for the second 
year of the biennium as may be necessary will be presented to the Committee on Budget, Finance and Administration, which will examine them and formulate a recommendation for consideration by the General Council.  
Regulation 49 
  The external auditor shall issue a report on  the audit of the financial statements and 
relevant schedules reflecting the position of the final accounts for the biennium which shall include such information as he deems ne cessary in regard to matters referred to in Regulation 47, 
paragraph 2, and in the additional terms of reference. 
    
                                                     
 
1 WT/GC/M/82. 
2 WT/BFA/67 and WT/BFA/W/105/Rev.1. 
3 WT/BFA/W/105/Rev.1, paragraph 3(e). 
4 WT/L/156/Rev.1. WT/BFA/W/121 
Page 2  
 
4. In order to assure maximum tran sparency in the accounts of the WTO, it is suggested that the 
accounts for the first year would be audited and the r esults of the audit, along with any comments the 
auditors may make, would be communicated to the CBF A, which would take note of the information. 
 5. At the end of the biennium, the second year's ac counts would be audited in the same manner.  
The results of the two years' audits would then be  consolidated and the full report of the auditors on 
the biennium, in the form which, to date, has been  presented on an annual basis,  would be examined 
by the Committee and a recommendation to th e General Council would be formulated. 
 6. The Committee is invited to cons ider the above and take note. 
 
 
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