RESTRICTED 
WORLD TRADE WT/BFA/IS 
L/7649 
ORGANIZATION 3 November 1995 
Limited Distribution 
(95-3426) 
REPORT OF THE JOINT WTO/GATT COMMITTEE ON BUDGET. 
FINANCE AND ADMINISTRATION 
INTRODUCTION 
1. The Committee on Budget, Finance and Administration met at the Centre William Rappard, 
Geneva, on 28 September, 6, 9, and 13 October, and 2 November 1995 in formal meetings and on 
31 October 1995 in an informal meeting. 
2. The Committee was chaired by Mr. J-M. Metzger of France. Attention was drawn to 
documents WT/L/44 and L/5964/Rev.9 of 23 February and 20 March 1995 respectively setting out 
the terms of reference and the membership of the Committee. 
3. Documents WTO/AIR/145-GATT/AIR/3696, WTO/AIR/169-GATT/AIR/3698, and 
WTO/AIR/178-GATT/AIR/3701 setting out the Agenda for the Committee were adopted. 
A. WTO/GATT SECRETARIAT 
I. BUDGET ESTIMATES FOR 1996 
(WT/BFA/10, L/7640) 
4. The Secretariat presented the budget estimates for 1996 (WT/BFA/10, L/7640) amounting to 
Sw F 121,552,703 and explained that a considerable portion of the overall increase was the result of 
decisions already taken by the General Council in 1995, inflation and statutory increases/decreases. 
These elements, in addition to the proposed adjustment to salaries and pensions, represented 14.93 per 
cent of the total overall proposed increase of 15.33 per cent. Two Deputy Directors-General 
addressed the Committee and highlighted the position of the Director-General that, in view of the 
increases over which the Secretariat had no control, he had kept discretionary increases to the absolute 
minimum. The importance that the Director-General attached to the resolution of the question on 
salaries and pensions was also stressed. 
5. Members of the Committee recalled that the most stringent budgetary constraints were being 
operated in almost all national administrations. Although they were aware of the new responsibilities 
and fields of activity, they were of the opinion that increases should be kept to the bare minimum and 
that savings should be sought wherever possible. WT/BFA/13 
L/7649 
Page 2 
6. The Committee welcomed the dual presentation of the budget in the overall form and at the 
divisional level (functional budget). It was explained that the inclusion of a functional budget was 
a first attempt to identify costs at the divisional level which would assist Members to better assess the 
cost of the various activities of the Secretariat and improve efficiency by giving Directors more 
responsibility for financial decisions. 
7. The examination of the proposal for adjustment to salaries and pensions focused upon the 
pension element, which had been under study for several months. Various meetings of the Committee 
as well as the Working Group on Personnel-Related Questions had examined the proposal to withdraw 
from the United Nations Joint Staff Pension Fund and to set up a WTO Pension Plan. A revised 
proposal for an alternative WTO plan, taking into account the views expressed in those meetings, was 
submitted by the Secretariat. In an effort to synthesize varying points of view and to accommodate 
Committee Members' concerns, the Chairman of the Committee presented on his own responsibility 
a draft resolution on the question. The Committee was, nevertheless, unable to reach a consensus 
on the issue and the Chairman indicated that he would, again on his own responsibility, discuss the 
issue with the Chairman of the General Council with a view to pursuing it in that body. 
8. The Committee undertook a line-by-line examination of the proposed budget and heard 
explanations from members of the Secretariat. Additional explanatory papers were presented in the 
course of the discussions. A member expressed regret that the budget proposals did not reflect 
greater savings and productivity which might have been expected from more rigorous management. 
With regard to posts, a question was raised as to the inclusion in the staffing table of two senior-level 
posts which were vacant. A Member also questioned the fact that two of the new professional posts 
were not created in the divisions for which a request was originally presented. For the two senior-
level posts, it was ultimately agreed that any utilization of these posts, which could be at a lower 
level, would be brought to the attention of the Committee. Nevertheless, a member expressed 
disappointment that the final budget provided for the financing of these two posts. 
9. With regard to the additional posts for 1996, the Secretariat made available a Report of the 
Secretariat on the Implementation of the Decision on Additional Posts for 1996 (CRP(95)50). This 
report was in compliance with the recommendation of the Committee (WT/BFA/6, L/7633, 
paragraph 9d) which inter alia requested "the Secretariat to report on the implementation of (the) 
decision. " The report describes the manner in which the priorities and guidelines laid down by the 
Committee on Budget, Finance and Administration and the General Council have been complied with. 
10. Salary adjustments for the Professional staff have been decided in the Common System in 
1995. Their implications for 1996 amounted to Sw F 834,000. This amount, included in the 1996 
budget, would be financed from the 1995 Surplus Account or from the Working Capital Fund should 
no positive balance remain in that account. Another adjustment proposed by International Civil 
Service Commission (ICSC) for 1996 which would represent a cost of Sw F 742,000 was still under 
consideration by the UN General Assembly (UNGA). This amount would not be included in the 1996 
budget but, should the UNGA decide to award this second adjustment, it would be financed from the 
Surplus Account, or if not possible, from the Working Capital Fund. 
11. The Committee was informed in document CRP(95)52 that, subsequent to the presentation 
of the 1996 budget estimates, two situations had developed which required consideration in the context 
of the 1996 budget. One concerned the International Organization for Standards (ISO) for which an 
amount of Sw F 200,000 was proposed to set up the WTO Standards Information Service operated 
by ISO. The other element was related to the fact that completion of the renovation works in the 
South Wing of the Centre William Rappard would be delayed by some two to three months. This fact 
meant that the WTO offices at the Chemin des Mines would have to remain during that period. An 
amount of Sw F 140,000 was thus proposed to cover the rental and cleaning costs of these offices for WT/BFA/13 
L/7649 
Page 3 
three months. The Committee was of the opinion that these additional needs for 1996 should be 
compensated by corresponding reductions from the original budget estimates. 
12. After detailed discussions and informal consultations, the Committee agreed to recommend 
a budget for 1996 in the amount of Sw F 115,693,503. The revised estimates of expenditure for the 
financial year 1996 are contained in Schedule I. 
13. The Committee was informed that upon termination of the transitional co-existence of the 
GATT 1947 and the WTO Agreement (CRP(95)53) on 31 December 1995, there would likely be 
some GATT Contracting Parties which would not be WTO Members and which consequently would 
not be assessed contributions to the 1996 budget of the WTO. At the time of budget finalization, 
there were 17 Contracting Parties which either were not WTO Members nor scheduled to so become 
on a specific date. The Committee took note of this situation and the procedures outlined in the 
above-mentioned document. 
14. The Committee recommends to the General Council that (i) the decision adopted by the 
Preparatory Committee for the WTO and the CONTRACTING PARTIES (PC/8. L/7579) to the 
effect that "The Ministerial Conference shall take a decision under Article XH:2 of the WTO 
Agreement in respect of accession only if the financial obligations as an observer have been fully 
discharged" be applied, mutatis mutandis, to the contracting parties acceding to the WTO under 
Article XII: 2 and (ii) advances to the Working Capital Fund made by contracting parties which have 
not become Members of the WTO by 1 January 1996 will, in the first instance, be used to offset any 
contributions which may be outstanding for the contracting parties concerned. Any balance will then 
be returned to the contracting party. WT/BFA/13 
L/7649 
Page 4 
II. REVISED INCOME BUDGET ESTIMATES FOR 1996 
15. The Committee agreed that the budget for 1996 be financed as follows: 
(a) Contributions on Members 113,300,000 
(b) Miscellaneous income 1,559,503 
(c) Transfer from anticipated 1995 Surplus Account or from 
the Working Capital Fund should no positive balance remain 
in the Surplus Account 834,000 
115.693.503 
CONCLUSION 
16. The Committee examined the 1996 budget estimates submitted by the Director-General and 
considered following points: 
(a) economies should be operated on the following specific budget sections: 
(i) Section 7: Permanent Equipment - a 10 per cent reduction in the proposed 
amount for EDP equipment leading to a reduction of Sw F 100,000 and a revised 
credit of Sw F 3,194,500. The Committee was of the opinion that a rigorous 
tendering process could result in savings and still meet the WTO's requirements; 
(ii) Section 11: Official Missions - a reduction of Sw F 86,000 leading to a 
revised credit of Sw F 944,000. The Committee admitted that the increase in this 
provision should be limited to the effect of inflation; 
(iii) Section 14: Various: Public Information Activities - a reduction of 
Sw F 150,000 corresponding to the production of films (Sw F 90,000) which the 
Committee felt was inopportune and a 50 per cent reduction (Sw F 60,000) in the 
amount for creative design. The revised credit would then amount to Sw F 257,000; 
(b) the Director-General should identify further reductions amounting to Sw F 427,200; 
(c) following the practice of the Secretariat, transfers should not be operated with respect 
to credits relating to Missions or to Representation and Hospitality or between 
provisions for personnel costs and running costs; and 
(d) the Committee would be informed beforehand of any utilization of the credit 
associated with the two vacant senior-level posts (Sw F 354,400 according to the 
standard costing). 
17. The Committee recalled its previous examination of the Management Review and stressed the 
need to organize policy discussions in the General Council aimed at establishing management by 
objectives, clearly identified and defined by Members, and the evaluation of performance against these 
objectives through reports by the Secretariat. 
18. Taking into account the above considerations, the Committee submits to the General Council 
for consideration and approval the following draft resolution on the expenditure of the World Trade 
Organization and the ways and means to meet such expenditure. 
POINT FOR DECISION: Paragraph 14 and 18 WT/BFA/13 
L/7649 
Page 5 
DRAFT RESOLUTION ON THE REVISED EXPENDITURE OF THE 
WORLD TRADE ORGANIZATION IN 1996 AND THE WAYS AND MEANS 
TO MEET SUCH EXPENDITURE 
The General Council, 
HAVING CONSIDERED 
the estimates of expenditure of the World Trade Organization for 1996 amounting to 
Sw F 115,693,503 as set forth in the schedules annexed to this Resolution, 
RESOLVE that 
1. The financing of the amount of Sw F 115,693,503 referred to above shall be as follows: 
(a) by contribution from Members in the amount of Sw F 113,300,000; 
(b) by miscellaneous income estimated at Sw F 1,559,503; and 
(c) by transfer of Sw F 834,000 from the anticipated 1995 Surplus Account or from 
the Working Capital Fund should no positive balance remain in the Surplus Account. 
2. Should the Common System approve salary increases for the Professional and higher category 
staff which are currently under consideration in New York, the Director-General shall be 
authorized to finance such un-budgeted expenditure by having recourse (i) to any positive 
balance which may remain in the Surplus Account at the end of the financial year or (ii) by 
having recourse to the Working Capital Fund under the terms of paragraph (iii) (b) of the 
Rules Governing the Use of the Working Capital Fund. 
3. The contributions of the Members shall be assessed in accordance with the attached scale of 
contributions. Contributions from Members in respect of the 1996 budget are considered as 
due and payable in full as at 1 January 1996. WT/BFA/13 
L/7649 
Page 6 
SCHEDULE I 
REVISED ESTIMATES OF EXPENDITURE OF THE FINANCIAL YEAR 1996 
(in Swiss francs) 
II 
PART 
A. PROFESSIONAL 
B. GENERAL 
SERVICE 
C. ADMINISTRATIVE 
COSTS 
D. OTHER COSTS 
E. APPELLATE BODY 
F. 
TOTAL SECTION 
1) Work/years: 
Salary 
Pensions 
Other Common staff costs 
2) Temporary Assistance 
3) Work/years: 
Salary 
Pensions 
Other Common staff costs 
4) Temporary Assistance 
5) Communications: 
Telecommunications 
Postal Charges 
6) Building Facilities 
Rental 
Utilities 
Maintenance and Insurance 
7) Permanent Equipment 
8) Expendable Equipment 
9) Contractual Services: 
Reproduction 
Office Automation/Informatics 
Other 
10) Staff Overhead Costs: 
Training 
Insurance 
UN and Other Bodies 
Miscellaneous 
11) Missions: 
Official 
Technical Co-operation 
12) Trade Policy Training Courses 
13) Contribution to ITC 
14) Various: 
Hospitality 
Dispute Settlement Panels 
Permanent Group of Experts 
Appellate Body Panels 
Library 
Publications 
Public Information Activities 
External Auditors 
Ministerial Meeting 
Other 
ISO 
15) Unforeseen Expenditure 
16) Reimbursement of 1994 withdrawal 
from the Working Capital Fund 
17) CWR South Wing 
18) Appellate Body 
19) Adjustment to Salaries and Pensions ORIGINAL 
ESTIMATES 
33,672,000 
4,233,000 
6,389,000 
5,528,000 
21,933,000 
4,711,000 
3,346,200 
2,343,000 
838,000 
801,000 
0 
1,358,000 
861,000 
3,294,500 
1,154,000 
1,589,000 
1,367,800 
254,000 
253,000 
678,000 
510,200 
60,000 
1,030,000 
741,000 
1,232,000 
14,231,000 
258,000 
305,000 
137,400 
1,020,000 
481,800 
863,000 
407,000 
23,000 
100,000 
48,000 
300,000 
67,803 
440,000 
0 
4,694,000 
121,552,703 INCREASES/ 
(DECREASES) 
(742,000) 
(56,000) 
(20,000) 
(106,000) 
128,000 
(9,000) 
(140,000) 
(41,200) 
(15,000) 
(121,000) 
(7,000) 
(86,000) 
(150,000) 
200,000 
(4,694,000) 
(5,859,200) REVISED 
ESTIMATES 
32,930,000 
4,233,000 
6,389,000 
5,472,000 
21,933,000 
4,711,000 
3,346,200 
2,323,000 
732,000 
801,000 
128,000 
1,349,000 
861,000 
3,154,500 
1,112,800 
1,589,000 
1,367,800 
254,000 
253,000 
663,000 
389,200 
53,000 
944,000 
741,000 
1,232,000 
14,231,000 
258,000 
305,000 
137,400 
1,020,000 
481,800 
863,000 
257,000 
23,000 
100,000 
48,000 
200,000 
300,000 
67,803 
440,000 
0 
0 
115,693,503 WT/BFA/13 
L/7649 
Page 7 
SCHEDULE II 
REVISED SCALE OF CONTRIBUTIONS FOR 19961 
(Minimum contribution of 0.03%) 
MEMBERS 
Antigua and Barbuda 
Argentina 
Australia 
Austria 
Bahrain 
Bangladesh 
Barbados 
Belgium 
Belize 
Bolivia 
Botswana 
Brazil 
Brunei Darussalam 
Burkina Faso 
Burundi 
Canada 
Central African Republic 
Chile 
Colombia 
Costa Rica 
Côte d' Ivoire 
Cuba 
Cyprus 
Czech Republic 
Denmark 
Djibouti 
Dominica 
Dominican Republic 
Egypt 
El Salvador 
European Communities 
Finland 
France 
Gabon 
Germany 
Ghana 
Greece 
Guatemala 
Guinea 
Guinea-Bissau 
Guyana 1995 
CONTRIBUTION 
SwF 
31,320 
334,080 
1,346,760 
1,461,600 
114,840 
93,960 
31,320 
3,455,640 
31,320 
31,320 
52,200 
929,160 
52,200 
31,320 
31,320 
4,144,680 
31,320 
302,760 
198,360 
62,640 
83,520 
167,040 
62,640 
313,200 
1,106,640 
31,320 
31,320 
41,760 
177,480 
31,320 
-
678,600 
7,078,320 
41,760 
11,985,120 
31,320 
469,800 
52,200 
31,320 
31,320 
31,320 1996 
CONTRIBUTION 
% 
0.03 
0.37 
1.27 
1.69 
0.10 
0.08 
0.03 
3.02 
0.03 
0.03 
0.04 
0.81 
0.05 
0.03 
0.03 
3.87 
0.03 
0.30 
0.19 
0.06 
0.07 
0.11 
0.07 
0.38 
1 11 
0.03 
0.03 
0.06 
0.29 
0.03 
-
0.67 
7.01 
0.05 
10.79 
0.03 
0.40 
0.05 
0.03 
0.03 
0.03 SwF 
33,990 
419,210 
1,438,910 
1,914,770 
113,300 
90,640 
33,990 
3,421,660 
33,990 
33,990 
45,320 
917,730 
56,650 
33,990 
33,990 
4,384,710 
33,990 
339,900 
215,270 
67,980 
79,310 
124,630 
79,310 
430,540 
1,257,630 
33,990 
33,990 
67,980 
328,570 
33,990 
-
759,110 
7,942,330 
56,650 
12,225,070 
33,990 
453,200 
56,650 
33,990 
33,990 
33,990 INTEREST 
EARNED 
SwF 
-
(319) 
(13,066) 
(12,571) 
(59) 
(277) 
(125) 
(24,901) 
(163) 
-
(39) 
(12) 
(115) 
-
-
(39,782) 
-
-
(1,348) 
-
(579) 
(35) 
(414) 
(2,426) 
(10,782) 
-
-
-
(934) 
(151) 
-
(5,432) 
(57,126) 
-
(91,393) 
-
(2,227) 
-
-
-
(307) 1996 NET 
CONTRIBUTION 
SwF 
33,990 
418,891 
1,425,844 
1,902,199 
113,241 
90,363 
33,865 
3,396,759 
33,827 
33,990 
45,281 
917,718 
56,535 
33,990 
33,990 
4,344,928 
33,990 
339,900 
213,922 
67,980 
78,731 
124,595 
78,896 
428,114 
1,246,848 
33,990 
33,990 
67,980 
327,636 
33,839 
-
753,678 
7,885,204 
56,650 
12,133,677 
33,990 
450,973 
56,650 
33,990 
33,990 
33,683 
1 Interest earned in 1994 under the Early Payment Encouragement Scheme (L/6384) and to be deducted 
from 1996 contribution. WT/BFA/13 
L/7649 
Page 8 
1995 1996 INTEREST 1996 NET 
MEMBERS CONTRIBUTION CONTRIBUTION EARNED CONTRIBUTION 
Honduras 
Hong Kong 
Hungary 
Iceland 
India 
Indonesia 
Ireland 
Israel 
Italy 
Jamaica 
Japan 
Kenya 
Korea, Republic of 
Kuwait 
Lesotho 
Liechtenstein 
Luxembourg 
Macau 
Madagascar 
Malawi 
Malaysia 
Maldives 
Mali 
Malta 
Mauritania 
Mauritius 
Mexico 
Morocco 
Mozambique 
Myanmar, Union of 
Namibia 
Netherlands, Kingdom of the 
New Zealand 
Nicaragua 
Nigeria 
Norway 
Pakistan 
Paraguay 
Peru 
Philippines 
Poland 
Portugal 
Romania 
Saint Lucia 
St.Vincent & the Grenadines 
Senegal 
Sierra Leone 
Singapore 
Slovak Republic 
Slovenia 
South Africa SwF 
31,320 
3,716,640 
323,640 
52,200 
647,280 
856,080 
730,800 
522,000 
5,564,520 
41,760 
8,988,840 
41,760 
2,484,720 
187,920 
31,320 
31,320 
302,760 
52,200 
31,320 
31,320 
1,273,680 
31,320 
31,320 
52,200 
31,320 
41,760 
1,148,400 
167,040 
31,320 
31,320 
41,760 
4,113,360 
292,320 
31,320 
313,200 
918,720 
250,560 
31,320 
125,280 
396,720 
480,240 
678,600 
167,040 
31,320 
31,320 
31,320 
31,320 
1,440,720 
135,720 
146,160 
542,880 % 
003 
3.28 
0.30 
005 
0.56 
0.84 
0.66 
0.57 
5.37 
0.05 
8.56 
0.05 
2.36 
0.25 
0.03 
0.03 
0.26 
0.07 
0.03 
0.03 
1.06 
0.03 
0.03 
0.06 
0.03 
0.05 
1.28 
0.16 
0.03 
0.03 
0.03 
3.75 
0.28 
0.03 
0.26 
1.02 
0.23 
0.06 
0.11 
0.37 
0.44 
0.61 
0.15 
0.03 
0.03 
0.03 
0.03 
1.92 
0.19 
0.18 
0.58 SwF 
33.990 
3,716,240 
339,900 
56,650 
634,480 
951,720 
747,780 
645,810 
6,084,210 
56,650 
9,698,480 
56,650 
2,673,880 
283,250 
33,990 
33,990 
294,580 
79,310 
33,990 
33,990 
1,200,980 
33,990 
33,990 
67,980 
33,990 
56,650 
1,450,240 
181,280 
33,990 
33,990 
33,990 
4,248,750 
317,240 
33,990 
294,580 
1,155,660 
260,590 
67,980 
124,630 
419,210 
498,520 
691,130 
169,950 
33,990 
33,990 
33,990 
33,990 
2,175,360 
215,270 
203,940 
657,140 SwF 
-
(31,306) 
(3,051) 
(498) 
(3,005) 
(7,877) 
(7,301) 
(3,030) 
(44,977) 
(45) 
(39,104) 
-
(10,444) 
(526) 
-
-
(2,840) 
(431) 
-
-
(1,243) 
(202) 
-
(493) 
-
(348) 
(5,544) 
(1,522) 
-
(249) 
• 
(38,620) 
(2,776) 
-
(24) 
(8,751) 
-
(148) 
-
(1,547) 
(4,099) 
(1,888) 
-
(186) 
-
-
-
(9,301) 
(1,329) 
-
(5,230) SwF 
33.990 
3,684,934 
336,849 
56,152 
631,475 
943,843 
740,479 
642,780 
6,039,233 
56,605 
9,659,376 
56,650 
2,663,436 
282,724 
33,990 
33,990 
291,740 
78,879 
33,990 
33,990 
1,199,737 
33,788 
33,990 
67,487 
33,990 
56,302 
1,444,696 
179,758 
33,990 
33,741 
33,990 
4,210,130 
314,464 
33,990 
294,556 
1,146,909 
260,590 
67,832 
124,630 
417,663 
494,421 
689,242 
169,950 
33,804 
33,990 
33,990 
33,990 
2,166,059 
213,941 
203,940 
651,910 WT/BFA/13 
L/7649 
Page 9 
MEMBERS 
Spain 
Sri Lanka 
Suriname 
Swaziland 
Sweden 
Switzerland 
Tanzania 
Thailand 
Togo 
Trinidad and Tobago 
Tunisia 
Turkey 
Uganda 
United Kingdom of Great 
Britain & Northern Ireland 
United States of America 
Uruguay 
Venezuela 
Zambia 
Zimbabwe 
TOTAL 1995 
CONTRIBUTION 
SwF 
2,401,200 
93,960 
31,320 
31,320 
1,576,440 
1,879,200 
31,320 
1,148,400 
31,320 
52,200 
156,600 
553,320 
31,320 
6,190,920 
15,586,920 
52,200 
407,160 
31,320 
52,200 
103,324,680 1996 
CONTRIBUTION 
% 
2.43 
0.08 
0.03 
0.03 
1.55 
1.82 
0.03 
1.03 
0.03 
0.04 
0.14 
0.60 
0.03 
5.98 
15.87 
0.06 
0.37 
0.03 
0.05 
100.00 SwF 
2,753,190 
90,640 
33,990 
33,990 
1,756,150 
2,062,060 
33,990 
1,166,990 
33,990 
45,320 
158,620 
679,800 
33,990 
6,775,340 
17,980,710 
67,980 
419,210 
33,990 
56,650 
113,300,000 INTEREST 
EARNED 
SwF 
(16,295) 
(521) 
-
(47) 
(16,613) 
(19,200) 
(133) 
(9,276) 
-
-
-
(2,658) 
-
(63,506) 
(13,919) 
-
-
-
(313) 
(644,999) 1996 NET 
CONTRIBUTION 
SwF 
2,736,895 
90,119 
33,990 
33,943 
1,739,537 
2,042,860 
33,857 
1,157,714 
33,990 
45,320 
158,620 
677,142 
33,990 
6,711,834 
17,966,791 
67,980 
419,210 
33,990 
56,337 
112,655,001 WT/BFA/13 
L/7649 
Page 10 
SCHEDULE III 
REVISED ESTIMATES OF MISCELLANEOUS INCOME 
FOR 1996 
(in Swiss francs) 
Sale of publications 
Profit or (loss) on exchange 
Savings on previous year's outstanding obligations 
Overhead on Trust Funds 
Rental of meeting rooms and office space at Centre 
William Rappard to others 
Contributions of Observer Countries 
Other: 
- Interest on Current Account 
- Various 
TOTAL 720,000 
60,000 
66,000 
25,800 
15,000 
520,000 
92,000 
60,703 
1,559,503 WT/BFA/13 
L/7649 
Page 11 
B. INTERNATIONAL TRADE CENTRE UNCTAD/GATT 
PROPOSED PROGRAMME BUDGET FOR THE BIENNIUM 1996-1997 
(A/50/6, A/50/7, A/50/16 AND CRP(95)47) 
19. The Committee was informed that, in a letter dated 29 September 1995 to the Director-General, 
the Secretary-General of the United Nations noted the agreement "to recommend to the responsible inter­
governmental organs that present arrangements governing the status of the International Trade Centre as 
a joint body be confirmed and renewed with the World Trade Organization, subject to revised budgetary 
arrangements as called for by the General Council of the World Trade Organization. " It is anticipated that 
the revised budgetary arrangements will be reflected in the 1997 budget. 
20. The Executive Director of the International Trade Centre (ITC) presented document A/50/6 
(Section 10B) concerning the proposed programme budget for the biennium 1996-1997. The proposed 
programme budget of ITC for the biennium 1996-1997 was estimated at US$ 44,048,000. Of this amount, 
i US$ 764,000 would be met from income, leaving an amount of US$ 43,284,000 to be contributed in equal 
portions by the United Nations and the WTO. The proposed budget for 1996 was based on an estimated 
rate of exchange of US$ 1/Sw F 1.37. Of the total amount of US$ 21,327,500 proposed for 1996, 
miscellaneous income is estimated at US$ 369,100. Therefore, the net amount to be equally provided for 
in the budgets of the United Nations and the WTO is US$ 10,479,200, corresponding to Sw F 14,231,000. 
21. The Executive Director further indicated that the cost of a new P-4 post, amounting to 
US$ 285,800, for activities related to the follow-up of the Uruguay Round of multilateral trade negotiations 
was included in the budget. The post would be located at Geneva and its cost would be offset by 
reductions under other objects of expenditure in administrative sectors. 
22. The Committee recommends to the General Council that the WTO share of the expenditure for the 
International Trade Centre UNCTAD/GATT for 1996 be approved in the amount of US$ 10.479.200. 
miscellaneous income being estimated at US$ 369,100. The amount to be provided to the Centre from 
the 1996 WTO budget represents Sw F 14.231.000. The contribution will be paid in Swiss francs in 
twelve equal monthly instalments. 
POINT FOR DECISION: Paragraph 22 
C. OTHER ITEMS 
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS 
(CRP(95)35-37, WT/BFA/8, L/7635) 
23. The Committee heard the reports presented by the Secretariat on the cash situation, the statement 
of outstanding contributions as at 31 August 1995, and the progress report of the instalments for countries 
in arrears. The funds available as of 31 August 1995 stood at Sw F 22,534,428, while the total 
contributions received amounted to Sw F 76,895,070, and the Working Capital Fund stood at 
Sw F 6,555,111. 
24. The Committee took note of the various up-dates and progress reports. 
25. The Committee also heard the delegate of Tanzania on the efforts made by his Government to 
honour its financial commitment to WTO. It was hoped that other countries would do the same. In this 
way, WTO would be strengthened to provide technical assistance to the poor and least developed countries. WT/BFA/13 
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26. The Committee took note of this statement and commended Tanzania for its commitment to the 
financing of WTO and urged all countries in arrears to follow this example. 
II. OUTSTANDING POINTS REGARDING INACTIVE MEMBERS 
(CRP(95)40) 
27. The Committee examined document CRP(95)40 on outstanding points regarding Inactive Members 
which were that (i) "assessments for Inactive Members for a given year be placed in a separate account 
and not counted as part of the anticipated revenue of the WTO for that year" and (ii) "arrears collected 
from Inactive Members for a given year be placed in the Surplus Account" (PC/7, L/7578). 
28. The ensuing discussion revealed that there was no consensus in the Committee with regard to a 
recommendation on the adoption of these two points. 
29. In the context of the statement of outstanding contributions which contains information on 
Contracting Parties/Members under the various categories of administrative measures, the Committee was 
informed that Guatemala, Haiti and Senegal had been deleted from the list of Inactive Members pursuant 
to relevant payments of contributions. Subsequently Zambia was also deleted. The Committee 
commended these countries and urged them to continue payment on remaining arrears. 
III. PERFORMANCE AGAINST BUDGET AT 31 AUGUST 1995 
(CRP(95)41) 
30. The Secretariat presented a report on the performance against budget at 31 August 1995, and 
indicated that there was, at this stage, expected budgetary savings amounting to some Sw F 3.2 million. 
The main reasons for this saving were: (i) the expenditure for the Appellate Body, in 1995, will be lower 
than anticipated; (ii) the delay in recruitment of the 17 Professional posts created in 1994 as well as 
recruitment at a lower level than foreseen; (iii) the foreseen increase of 4 per cent of the General Service 
(GS) category not awarded within the Common System; and (iv) the fluctuation of the US$ vis-à-vis the 
Swiss Franc. Conversely, overspendings were mainly due to (i) unforeseen early retirement of staff; 
(ii) the health insurance contribution for GS category had been underestimated; (iii) entitlements for 
language and family allowances were higher than anticipated, and (iv) the delay in departure of UNHCR 
from the CWR which entailed the continuation of the rental of annex offices at 80, rue du Lausanne and 
2, chemin des Mines. 
31. The Committee took note of the report. 
IV. EXTERNAL AUDIT OF THE ACCOUNTS OF WTO 
(CRP(95)32) 
32. The Committee took note of the contents of the draft letter inviting competitive tenders for the 
external audit of the accounts of the WTO, beginning with the year 1996, and also took note that the call 
for tenders would be sent to all Members with a view to receiving responses by 31 December 1995. WT/BFA/13 
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V. TRANSITION FROM THE ICITO TO THE WTO 
33. The Committee was informed by the Chairman that the completion of transition from ICITO to 
the WTO would likely be delayed be three months. Various Members expressed concern over the impact 
the delay would have on the various subjects under study relating to the conditions of service for the staff. 
It was agreed that the question would be re-examined at a future meeting of the Committee in light of 
additional legal opinion on the matter. 
VI. DRAFT STAFF REGULATIONS FOR THE WTO 
(WT/BFA/9, L/7636) 
34. The Committee reviewed the WTO draft Staff Regulations presented by the Secretariat. While not 
departing in any significant way from the common system, the draft Staff Regulations improved the 
framework of conditions of employment. Due to the different views expressed on the subject, the 
Committee noted that a number of points required further discussions. It was agreed that these questions 
would be examined by a working group established to discuss the matter. 
VII. FINANCIAL REGULATIONS AND FINANCIAL RULES OF THE WTO 
35. The Secretariat presented the draft Financial Regulations and Financial Rules of the WTO for 
discussion. It was stressed that they were based on the GATT practice which itself was based on the UN 
regulations and rules in accordance with the Article VII: 2 of the Marrakesh Agreement Establishing the 
World Trade Organization. 
36. During the discussions Members proposed various amendments which have been embodied in the 
text of Annex I and Annex II. 
37. While being able to join in a consensus, one delegation expressed a reserve on the existence of a 
provision for contributions in arrears which forms part of the Surplus Account, the effect of which is that 
arrears are borne by paying Members. With regard to use of the Working Capital Fund the delegation also 
expressed the view that extraordinary expenditure should be financed through a Supplementary Budget 
rather than by having recourse to the Working Capital Fund. 
38. Two Members expressed reservations with regard to the administrative measures to be applied to 
Members with arrears, particularly concerning Inactive Members, as set out in the Financial 
Regulation 15.2. Another Member was of the view that the obligation to pay contributions promptly had 
to be further stressed. 
39. The Committee recommends to the General Council that, in accordance with Article VII:3 of the 
Marrakesh Agreement Establishing the World Trade Organization, the WTO Financial Regulations and 
Financial Rules as set out in Annex I and Annex II respectively be adopted. WT/BFA/13 
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VIII. OTHER BUSINESS 
40. The Committee heard a presentation made by Norway on the contribution of his Government of 
US$ 2.5 million for a Trust Fund for Development of Technical Co-operation and indicated that the fund 
was considered a WTO trust fund, primarily to assist and encourage the active participation of the poor 
and least developed countries in the WTO's activities. In the implementation of this trust fund, which was 
particularly, but not exclusively, destined for African countries, WTO should co-ordinate with ITC and 
UNCTAD. 
41. Several Members congratulated Norway's initiative and expressed the hope that wide publicity 
would be given with regard to trust fund in order to encourage, on the one hand, other donor countries 
to follow this initiative, and on the other, recipient countries to make full use of it. The co-operation of 
WTO/ITC/UNCTAD in the implementation of this trust fund was stressed in order to avoid duplication 
of work. In the negotiation on the framework of this trust fund, the recipient countries should also be 
involved. Members expressed the need to have transparency on the utilisation of the trust fund and that 
it should also be reported in the Committee on Budget, Finance and Administration. 
POINT FOR DECISION: Paragraph 39 WT/BFA/13 
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ANNEX I 
FINANCIAL REGULATIONS 
CONTENTS 
Page 
Chapter I. Authority and applicability 16 
Chapter II. Preparation of the budget estimates 16 
Chapter III. Adoption of the budget 17 
Chapter IV. Collection of funds 17 
(a) Contributions from Members 17 
(b) Other income 20 
(c) Voluntary contributions, gifts or donations 20 
Chapter V. Use of funds 20 
Chapter VI. The Surplus Account 21 
Chapter VII. The Working Capital Fund 22 
Chapter VIII. Custody and investment of funds 23 
Chapter IX. The accounts 23 
Chapter X. Internal control 24 
Chapter XI. External audit 25 
APPENDIX TO THE FINANCIAL REGULATIONS 
Additional terms of reference governing external audit 27 WT/BFA/13 
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CHAPTER I. AUTHORITY AND APPLICABILITY 
Regulation 1 
These Regulations shall govern the financial administration of the World Trade Organization 
(WTO). 
Regulation 2 
The Director-General shall be responsible for the implementation of these Regulations. He may 
delegate to other officers of the WTO such authority as he considers necessary for the effective 
implementation of these Regulations. 
Regulation 3 
Rules made by the Director-General in order to carry out the provisions of these Regulations shall 
be communicated to the General Council for approval. 
Regulation 4 
These Regulations shall not be amended except by the General Council acting upon the advice of 
the Committee on Budget, Finance and Administration. 
CHAPTER II. PREPARATION OF THE BUDGET ESTIMATES 
Regulation 5 
The financial period of the WTO shall be one calendar year. 
Regulation 6 
13. For every financial period, the Director-General shall prepare budget proposals containing estimates 
of the income and expenditure of the WTO. 
21 The estimates shall be expressed in Swiss francs. 
Regulation 7 
11. The proposed expenditure estimates shall be divided into parts and sections. 
2. The proposed expenditure estimates shall be accompanied by such information annexes and 
explanatory statements as may be requested by or on behalf of the General Council, and such further 
annexes or statements as the Director-General may deem necessary and useful. 
Regulation 8 
1. Supplementary budget proposals for the current financial period may be submitted by the Director-
General whenever necessary. 
2. The Director-General shall prepare supplementary budget proposals in a form consistent with the 
approved budget. These proposals shall follow the same examination and approval process as for the 
annual budget proposals. WT/BFA/13 
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Regulation 9 
The income estimates shall consist of: 
(a) a schedule of miscellaneous income showing for each item, in addition to the estimated amounts, 
the approved amount for the preceding financial period; 
(b) a draft scale of contributions to be assessed on Members, showing for each Member, the proposed 
assessment and the contribution assessed for the preceding financial period. 
CHAPTER III. ADOPTION OF THE BUDGET 
Regulation 10 
The Director-General shall submit the budget estimates to the Committee on Budget, Finance and 
Administration in time for it to be considered at its session in the Autumn preceding each financial period. 
At the same time, these budget estimates shall be transmitted to all Members of the WTO. 
Regulation 11 
The Committee on Budget, Finance and Administration shall examine the budget estimates and 
prepare a report thereon which shall be submitted to the General Council for adoption. 
CHAPTER IV. COLLECTION OF FUNDS 
(a) Contributions from Members 
Regulation 12 
1. The expenses of the WTO shall be financed by contributions from Members and miscellaneous 
income. The contributions shall be according to the scale of assessments determined by the General 
Council, subject to the adjustments effected in accordance with the provisions of Regulation 15. 
2. The share to be contributed by each Member to the annual operating budget of the WTO shall be 
established on the basis of that country's (or separate customs territory's) international trade (imports plus 
exports) in relation to the total international trade of all WTO Members. 
3. The figures used shall be those for the last three years for which data are available. 
4. The statistics used shall relate to trade in goods,2 services and intellectual property rights as 
reported in Balance of Payments statistics from the International Monetary Fund (IMF); with regard to 
services, the statistics shall relate to the definition of commercial services as applied in the WTO. 
5. Where IMF data deviate from IMF guidelines and include transactions not related to goods, 
services or intellectual property rights, adjustments provided to the WTO by the Central Bank or the 
National Statistical Office of a Member shall be taken into account by the Secretariat when adequately 
documented and justified. 
excluding gold held as a store of value (deposit money banks) WT/BFA/13 
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6. If IMF data are not available, the WTO Secretariat shall use estimates based on the best other 
available sources. 
7. A minimum contribution of 0.03 percent will be applied to those members whose share in the total 
international trade of all WTO Members is less than 0.03 per cent. 
8. The contributions shall be assessed and paid in Swiss francs. 
Regulation 13 
1. After the General Council has adopted the budget, the Director-General shall: 
(a) transmit the relevant documents to the Members; 
(b) inform the Members of their commitments in respect of annual contributions, and send a 
corresponding invoice; 
(c) request the Members to remit their contributions. 
2. In accordance with Article VII, 4 of the Marrakesh Agreement Establishing The World Trade 
Organisation, Members have the obligation to contribute promptly to the WTO their share in the expenses 
of the WTO. Contributions shall be considered as due and payable in full upon receipt of the invoice or 
on 1 January of the financial period to which they relate, whichever is later. As of 1 January of the 
following calendar year, the unpaid balance of such contributions shall be considered to be one year in 
arrears. 
Regulation 14 
The Director-General shall take appropriate action with a view to ensuring that Members pay their 
annual contributions promptly. He shall report regularly to the Committee on Budget, Finance and 
Administration on the state of payment of contributions. 
Regulation 15 
1. An Early Payment Encouragement Scheme shall be applied with a view to encouraging the payment 
of contributions as early as possible in the year in which they fall due. The interest earned by investing 
the funds received by the Secretariat and not required immediately shall be refunded to Members who 
made early payments on a pro rata basis depending on the amount of the payments and the date when they 
are made. 
2. So as to avoid the occurrence of contributions in arrears administrative measures shall be applied, 
where appropriate, after three months' notice by the Secretariat to the Member concerned and the granting 
of a grace period of one month, as follows: 
(a) After one full year's assessed contribution remains outstanding at the end of the WTO's 
financial year: 
documentation would not be posted to delegations to the WTO in Geneva, 
representatives would not be nominated to preside over WTO bodies. WT/BFA/13 
L/7649 
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(b) After more than one but less than two full years' assessed contributions remain outstanding 
at the end of the WTO's financial year: 
documentation would not be posted to delegations to the WTO in Geneva, 
representatives would not be nominated to preside over WTO bodies, 
participation in the Committee on Budget, Finance and Administration would be 
reserved for Members whose contributions are paid or who have not more than 
one full year's assessment outstanding. 
(c) After two but less than three full years' assessed contributions remain outstanding at the 
end afthe WTO's financial year: 
documentation would not be posted to delegations to the WTO in Geneva, 
representatives would not be nominated to preside over WTO bodies, 
participation in the Committee on Budget, Finance and Administration would be 
reserved for Members whose contributions are paid or who have more than one 
full year's assessment outstanding, 
documentation would not be posted to Members, 
recommendations by the Committee on Budget, Finance and Administration to the 
General Council on financial matters would be acted on only by Members whose 
contributions are paid or who have less than two full years' assessments 
outstanding. 
i(4) After three ftiii years' assessed nantributions remain outstanding at the end of the, WTO's 
financial year: 
a Meniber -would be designated as an Inactive Member, 
«he list of Inactive Members would be notified to the General Council by the; 
Committee on Budget, Finance and Administration at the beginning of each 
calendar year with a recommendation that these Members be urged to liquidate 
their arrears, 
as soon as an appropriate payment is made by an Inactive Member, the. General 
Council would be notified immediately of the consequential deletion from the list 
of Inactive Members, 
Inactive Members would be denied access to training or technical assistance other 
than that necessary to meet their WTO Article XIV-2 obligations 
Regulation 16 
States or separate customs territories having the status of Observers may only accede to the WTO 
if their financial obligations as Observers have been fully discharged. New Members shall be required to 
make a pro rata contribution for the year in which they become Members, after any relevant deduction 
of their assessment as Observer which shall also be calculated on a pro rata basis for that year. New 
Members shall also be required to provide their proportion of the total advances to the Working Capital 
Fund; this advance shall be carried to the credit of the relevant Member. Payments made by a Member 
shall be credited first to the Working Capital Fund and then to the contributions due. 
Regulation 17 
Any payment in respect of contributions made by a Member which has not paid in full its 
contribution for previous calendar years shall, unless the General Council decides otherwise, be credited 
against the earliest date of such arrears. WT/BFA/13 
L/7649 
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Regulation 18 
A Provision for contributions in arrears shall be maintained. It shall be funded through the Surplus 
Account. 
(b) Other income 
Regulation 19 
1. Except in so far as the General Council may decide otherwise, all income other than (a) 
contributions payable by Members, (b) interest earned by investing contributions received by the Secretariat 
and not required immediately, (c) income derived from investments of the Working Capital Fund, (d) 
direct refunds of prior year's expenditure received during the current financial period, and (e) assessments 
of Observers, shall be classed as miscellaneous income. 
2. For each full payment of an annual contribution between 1988 and 1994, any Member with pre-
1988 arrears and assessed at the minimum contribution in 1988 may cancel an equal number of assessments 
for 1987 and earlier years upon payment of the 1989 minimum contribution of Sw F 19,137. The 
difference between an outstanding contribution for pre-1988 and the amount of Sw F 19,137 shall be 
funded by miscellaneous income. 
(c) Voluntary contributions, gifts or donations 
Regulation 20 
1. Voluntary contributions, gifts or donations may be accepted by the Director-General provided that 
the purposes for which the contributions are made are consistent with the policies, aims and activities of 
the WTO, and provided that the acceptance of such contributions which directly or indirectly involve 
additional financial liability for the WTO shall require the consent of the Committee on Budget, Finance 
and Administration. 
2. Moneys accepted for purposes specified by the donor shall be treated as trust funds or special 
accounts. 
3. Moneys accepted in respect of which no purpose is specified shall be treated as miscellaneous 
income and reported as "gifts" in the accounts of the financial period. 
4. Money received by a staff Member as honoria in his/her official capacity shall be remitted to the 
Organization and be credited to the WTO Staff Assistance Fund. 
5. Unless otherwise provided, such voluntary contributions, gifts or donations shall be administered 
in accordance with the present Financial Regulations. 
CHAPTER V. USE OF THE FUNDS 
Regulation 21 
The adoption of a budget by the General Council shall constitute an authorization to the Director-
General to incur obligations and make payments for the purposes for which the appropriations were voted 
and up to the amounts so voted. Regulation 22 WT/BFA/13 
L/7649 
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Appropriations shall be available for obligation during the financial period to which they relate. 
Regulation 23 
Appropriations shall remain available for twelve months following the end of the financial period 
to which they relate to the extent that they are required to discharge obligations in respect of goods 
supplied and services rendered in the financial period and to liquidate any other outstanding legal obligation 
of the financial period. The balance of the appropriations shall be surrendered by transfer to the Surplus 
Account. 
Regulation 24 
At the end of the twelve-month period provided in Regulation 23 above, the then remaining balance 
of any appropriations retained shall be transferred to miscellaneous income. Any unliquidated obligations 
of the financial period in question shall, at that time, be cancelled or, where the obligation remains a valid 
charge, transferred as an obligation against current appropriations. 
Regulation 25 
At the end of the financial period the Director-General shall report on the transfers of credits 
between sections of the expenditure budget to the General Council for approval. For items so identified 
by the Committee on Budget, Finance and Administration at the time of budget finalization, transfer shall 
not be permitted. 
Regulation 26 
The Director-General may enter into commitments for future financial periods, provided that such 
commitments: 
(a) are for activities which have been approved by the General Council and are expected to 
continue beyond the end of the current financial period; or 
(b) are authorized by specific decisions of the General Council. 
CHAPTER VI. THE SURPLUS ACCOUNT 
Regulation 27 
1. Budgetary surpluses shall be transferred to the Surplus Account pending decision by the General 
Council on their use. 
2. Increases and decreases of the Provision for contributions in arrears shall be effected by means of 
the Surplus Account. 
3. If at the end of a financial year 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 year following that in 
which the surplus occurs, thereby reducing Member's contributions; WT/BFA/13 
L/7649 
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(ii) transfer to the Working Capital Fund; or 
(iii) use for any other purpose decided upon by the General Council. 
4. A deficit in the Surplus Account at the end of a financial period shall be covered, to the extent 
possible, by transfer from the Working Capital Fund. Any part of the deficit left uncovered after transfer 
from the Working Capital Fund shall be included as an appropriate credit in the budget for the next earliest 
possible financial period. 
CHAPTER VII. THE WORKING CAPITAL FUND 
Regulation 28 
The Working Capital Fund shall be constituted by: 
(a) assessed advances made by Members. Such sums shall be carried to the credit of the 
Members which have paid them; 
(b) any sums which the General Council may cause to be paid into it from time to time. Such 
sums shall be carried to the credit of the organization. 
Regulation 29 
Any government acceding to the WTO shall make an advance to the Fund in accordance with the 
scale of contributions applicable to the budget for the year of its accession. The minimum advance to the 
Working Capital Fund amounts to 0.5 per cent of the principal of the Fund for countries or separate 
customs territories whose share of the total trade of Members is 0.5 per cent or less. 
Regulation 30 
The Director-General is authorized to advance from the Working Capital fund: 
(a) such sums as may be necessary to finance budgetary appropriations pending receipt of 
contributions; 
(b) in exceptional circumstances and subject to prior authorization of the General Council, 
such sums as may be necessary to finance commitments relating to extraordinary 
expenditure. 
Regulation 31 
Sums advanced under Regulation 30(a) above shall be reimbursed to the Working Capital Fund 
as soon as receipts from contributions are available for the purpose. Sums advanced under 
Regulation 30(b) shall be reimbursed to the Working Capital Fund by including an appropriate credit in 
the budget for the next earliest possible financial period. 
Regulation 32 
The General Council may liberate all or part of the sums constituting the Working Capital Fund, 
and the sums so liberated in so far as they are derived from monies placed in the Fund under Regulation 28 
(a) shall be returned in Swiss francs to the Members which have contributed to the Fund in proportion to 
their respective shares in the Fund. WT/BFA/13 
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Regulation 33 
Subject to a decision of the General Council, countries or separate customs territories which for 
any reason cease to be Members of the WTO shall be entitled to the reimbursement of the total Swiss franc 
amount of their shares in the Working Capital Fund under Regulation 28 (a). 
Regulation 34 
Interest accrued on the Working Capital Fund shall be added to the Working Capital Fund and 
carried to the credit of the Organization under Regulation 28 (b) above. 
CHAPTER VIII. CUSTODY AND INVESTMENT OF FUNDS 
Regulation 35 
1. The Director-General shall designate the bank or banks in which the funds of the WTO shall be 
kept. 
2. The Director-General may make non-speculative short-term investments of monies not needed for 
immediate requirements. The investments of monies standing to the credit of any trust funds, reserve or 
special account shall be subject to any directives of the appropriate authority. 
3. The Director-General shall include in the financial statements submitted to the General Council a 
statement of the investments currently held. 
4. Income from investments shall be credited as provided in the rules or agreement relating to each 
fund or account. 
CHAPTER IX. THE ACCOUNTS 
Regulation 36 
1. The Director-General shall maintain such accounts as are necessary and shall prepare final accounts 
for each financial period on an accrual basis showing: 
(a) the income and expenditure of all funds; 
(b) the status of all appropriations, including: 
(i) the original budget appropriations; 
(ii) any supplementary appropriations ; 
(iii) the appropriations as modified by any transfers; 
(iv) credits, if any, other than the appropriations voted by the General Council; 
(v) the amounts charged against the appropriations; and 
(vi) the amounts charged against any other credit. 
(c) statements of assets and liabilities at the close of the financial period. 
He shall also give such other information as may be appropriate to indicate the current financial position 
of the WTO. WT/BFA/13 
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Regulation 37 
Appropriate separate accounts shall be maintained in respect of all trust funds, reserves and special 
accounts. 
Regulation 38 
The final accounts of the WTO shall be presented in Swiss francs. The accounting records may, 
however, be kept in such currency or currencies as the Director-General may deem necessary. 
Regulation 39 
The final accounts shall be submitted to the external auditor as soon as practicable following the 
end of the financial period to which they relate. 
Regulation 40 
The Director-General shall submit the final accounts and a financial report for each financial period 
and the external auditor's report thereon to the General Council as soon as practicable following the close 
of that period. 
Regulation 41 
The final audited accounts shall be submitted to the General Council for approval. 
CHAPTER X. INTERNAL CONTROL 
Regulation 42 
The Director-General shall: 
(a) establish detailed financial rules and procedures in order to ensure effective financial 
administration and the exercise of economy; 
(b) cause all payments to be made on the basis of appropriate supporting documents and other 
documents which ensure that the services or goods have been received and that payments 
have not previously been made; 
(c) designate the officers who may receive monies, incur obligations and make payments on 
behalf of the WTO; 
(d) maintain an internal financial control which shall provide for an effective current 
examination and/or review of financial transactions in order to ensure: 
(i) the regularity of the receipt, custody and disposal of all funds and other financial 
resources of the WTO; 
(ii) the conformity of obligations and expenditures with the appropriations or other 
financial provisions voted by the General Council, or with the purposes and rules 
relating to trust funds and special accounts; 
(iii) the economic use of the resources of the WTO. WT/BFA/13 
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Regulation 43 
Commitments or obligations shall not be incurred and payments shall not be made unless an 
appropriate authorization has been made under the authority of the Director-General. 
Regulation 44 
The Director-General may, on an exceptional basis, make such ex gratia payments as he deems 
to be necessary in the interests of the WTO. A statement of such payments shall be submitted with the 
final accounts. 
Regulation 45 
The Director-General may, after full investigation, authorize the writing-off of losses of cash, 
supplies, equipment and other assets, other than arrears of contributions. A statement of all such losses 
written off during the financial period shall be submitted to the external auditor with the final accounts. 
Regulation 46 
The Director-General shall establish rules for the procurement of equipment, supplies and other 
requirements, including rules governing the invitation of tenders. 
CHAPTER XI. EXTERNAL AUDIT 
Regulation 47 
1. The General Council shall appoint an external auditor to perform the audit of the accounts of the 
WTO. 
2. The external auditor shall be the Auditor-General (or officer holding the equivalent title) of a 
Member of the WTO or another person of high competence. 
3. The external auditor shall not be removed during his tenure of office except by the General 
Council. 
Regulation 48 
1. The audit shall be conducted in conformity with generally accepted common auditing standards 
and, subject to any special directives of the General Council, in accordance with the additional terms of 
reference set out in the Appendix to these Regulations. 
2. The external auditor may make observations with respect to the efficiency of the financial 
procedures, the accounting system, the internal financial controls and, in general, the administration and 
management of the WTO. 
3. The external auditor shall be completely independent and solely responsible for the conduct of the 
audit. 
4. The General Council may request the external auditor to perform certain specific examinations and 
issue separate reports on the results. WT/BFA/13 
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Regulation 49 
1. The Director-General shall provide the external auditor with the facilities he may require in the 
performance of the audit. 
2. For the purpose of making a local or special examination or of effecting economies of audit cost, 
the external auditor may in consultation with the Director-General engage the services of any national 
Auditor-General (or officer holding the equivalent title) or commercial public auditors of known repute or 
any other person or firm who, in the opinion of the external auditor, is technically qualified. 
Regulation 50 
1. 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 financial period which shall include such 
information as he deems necessary in regard to matters referred to in Regulation 48, paragraph 2, and in 
the additional terms of reference. 
2. The external auditor's report shall be submitted to the General Council, through the Committee 
on Budget, Finance and Administration, together with the audited financial statements. The Committee on 
Budget, Finance and Administration shall examine the financial statements and the auditor's report and 
shall forward them to the General Council with such comments as it deems appropriate. 
•• WT/BFA/13 
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APPENDIX TO THE FINANCIAL REGULATIONS 
Additional terms of reference governing external audit 
1. The external auditor shall perform such audit of the accounts of the WTO, including all trust funds 
and special accounts, as he deems necessary in order to satisfy himself that: 
(a) the financial statements are in accord with the books and records of the WTO; 
(b) the financial transactions reflected in the statements have been in accordance with the rules 
and regulations, the budgetary provisions and other applicable directives; 
(c) the securities and moneys on deposit and on hand have been verified by certificate received 
direct from the WTO's depositories or by actual count; 
(d) the internal controls are adequate; 
(e) procedures satisfactory to the external auditor have been applied to the recording of all 
assets, liabilities, surpluses and deficits. 
2. The external auditor shall be the sole judge as to acceptance in whole or in part of certifications 
and representations by the Director-General and may proceed to such detailed examination and verification 
as he chooses of all financial records, including those relating to supplies and equipment. 
3. The external auditor and his staff shall have free access at all convenient times to all books, records 
and other documentation which are, in the opinion of the external auditor, necessary for the performance 
of the audit. Information classified as confidential shall be made available on application. The external 
auditor and his staff shall respect the confidential nature of any information so classified which has been 
made available and shall not make use of it except in direct connection with the performance of the audit. 
4. The external auditor shall have no power to disallow items in the accounts but shall draw to the 
attention of the Director-General for appropriate action any transaction concerning which he entertains 
doubts as to legality or propriety. Audit objections, to these or any other transactions, arising during the 
examination of the accounts shall be immediately communicated to the Director-General. 
5. The external auditor shall express and sign an opinion in the following terms: "I have examined 
the financial statements numbered ... to ... and relevant schedules of the WTO for the financial period 
ended 31 December .... My examination included a general review of the accounting procedures and such 
tests of the accounting records and other supporting evidence as I considered necessary in the 
circumstances." The external auditor's opinion shall state, as appropriate, whether: 
(a) the financial statements present fairly the financial position as at the end of the period and 
the results of the operations for the period; 
(b) the financial statements were prepared in accordance with the stated accounting principles; 
(c) the accounting principles were applied on a basis consistent with that of the preceding 
financial period; 
(d) transactions were in accordance with the Financial Regulations and legislative authority. WT/BFA/13 
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6. The report of the external auditor to the General Council on the financial operations of the period 
should mention: 
(a) the type and scope of his examination; 
i 
(b) matters affecting the completeness or accuracy of the accounts, including where 
appropriate: 
(i) information necessary to the correct interpretation of the accounts; 
(ii) any amounts which ought to have been received but which have not been brought 
to account; 
(iii) any amounts for which a legal or contingent obligation exists and which have not 
been recorded or reflected in the financial statements; 
(iv) expenditures not properly substantiated; 
(v) whether proper books of accounts have been kept; 
(vi) any deviations of a material nature in the presentation of financial statements from 
generally accepted accounting principles applied on a consistent basis; 
(c) other matters should be brought to the notice of the General Council, such as: 
(i) cases of fraud or presumptive fraud; 
(ii) wasteful or improper expenditure of the WTO's money or other assets 
(notwithstanding the accounting for the transaction may be correct); 
(iii) expenditure likely to commit the WTO to further outlay on a large scale; 
(iv) any defect in the general system or detailed regulations governing the control of 
receipts and disbursements or of supplies and equipment; 
(v) expenditure not in accordance with the intention of the General Council after 
making allowance for duly authorized transfers within the budget; 
(vi) expenditure in excess of appropriations as amended by duly authorized transfers 
within the budget; 
(vii) expenditure not in conformity with the authority which governs it; 
(d) the accuracy or otherwise of the supplies and equipment records as determined by 
stocktaking and examination of the records; 
(e) where appropriate, transactions accounted for in a previous financial period concerning 
which further information has been obtained or transactions in a later financial period 
concerning which it seems desirable that the General Council should have early 
knowledge. 
7. The external auditor may make such observations with respect to his findings resulting from the 
audit and such comments on the Director-General's financial report as he deems appropriate to the General 
Council and to the Director-General. 
8. Whenever the external auditor's scope of audit is restricted, or he is unable to obtain sufficient 
evidence, he shall refer to the matter in his opinion and report, making clear in his report the reasons for 
his comments and the effect on the financial position and the financial transactions as recorded. 
9. In no case shall the external auditor include criticism in his report without first affording the 
Director-General an adequate opportunity of explanation on the matter under observation. 
10. The external auditor is not required to mention any matter referred to in the foregoing which, in 
his opinion, is not material. WT/BFA/13 
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ANNEX II 
FINANCIAL RULES 
CONTENTS 
Page 
I. Authority and Applicability 
1.10 Reference 32 
1.20 Applicability 32 
1.30 Responsibility or implementation 32 
1.40 Additional instructions to be issued by the 32 
Deputy Director-General in charge of Finance 32 
1.50 Responsibilities of the Director of Finance and 
General Services Division 32 
1.60 Approaches outside the WTO 32 
1.70 Responsibility for funds from external sources 32 
II. Preparation of the Budget Estimates 
2.10 Form of the budget estimates 33 
2.20 Responsibility for the preparation 
of the budget estimates 33 
2.30 Furnishing of cost estimates 33 
III. Collection of Contributions and Other Income 
3.10 Responsibility for collection of contributions 33 
3.20 Accounting for receipts 33 
3.30 Miscellaneous income 34 
3.40 Proceeds from the sale of equipment, discounts or rebates 34 
3.50 Acceptance of monies by officials 34 
3.60 Furnishing of official receipts 34 
IV. Appropriations and Allocations 
4.10 Responsibility of the Deputy Director-General in charge of Finance for the 
implementation of the approved budget 34 
4.20 Responsibility of the Director of Finance and General Services Division 
to allocate appropriations in accordance with the Functional Budget ... 35 
4.30 Periodic review of the expenditure position 35 
4.40 Transfers between items within the approved regular budget 35 
V. Control of Obligations 
5.10 Obligations to be incurred only by duly authorized officials 35 
5.20 Proposals or drafts having financial and/or budgetary implications 35 
5.30 Control of obligations 36 
5.40 Obligations to be incurred in conformity with the budget 36 
5.50 Objection to proposed obligations 36 
5.60 Adjustments of obligations 36 WT/BFA/13 
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VI. Presentation and Audit of Claims 
6.10 Payments to be made on the basis of claims 37 
6.20 Claims to be supported by a copy of the order 37 
6.30 Time-limits for the presentation of claims 37 
6.40 Audit of claims 37 
6.50 Claims to be accompanied by receiving reports 38 
6.60 Safeguards 38 
6.70 Objection to a claim 38 
VII. Payments 
7.10 Vouchers to support payments 38 
7.20 Payments to be made to duly entitled persons 39 
7.30 Officials authorized to make payments 39 
7.40 Determination of rates of remuneration 
and reimbursement 39 
7.50 Advance and progress payments 39 
7.60 Time-limits for payments 40 
7.70 Currencies of accounting and currency 
conversion rates 40 
7.80 Responsibility for payments 41 
7.90 Ex gratia payments 41 
VIII. Management of Funds 
8.10 Treasury management 41 
8.20 Monies to be deposited in banks . . . 41 
8.30 Operation of bank accounts 42 
8.40 Investment of funds 42 
8.50 Loss of cash - cases of fraud 42 
8.60 Exchange of currencies 42 
IX. Designation of Cashiers and Advances of Funds 
9.10 Designation of cashiers 42 
9.20 Establishment of operating cash advances (including 
Petty Cash advances) 42 
9.30 Accounting for operating cash advances 42 
9.40 Other cash advances 43 
X. Procurement 
10.10 Authorized contracting officials 43 
10.20 Contracts Committee 43 
10.30 Competitive bidding and advertising 43 
10.40 Exceptions to advertising requirements 44 
10.50 Awarding of contracts 44 
10.60 Purchase to be made in writing 44 
10.70 Written findings 44 WT7BFA/13 
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XI. Property 
11.10 Property records 45 
11.20 Physical inventories 45 
11.30 Use of property or services of the WTO 45 
11.40 Treatment of cases of loss of assets, fraud or 
unrecoverable debt 45 
11.50 Accounting for donated property 46 
11.60 Disposal of surplus property 46 
XII. The Accounts 
12.10 Responsibility for maintaining the accounts 46 
12.20 Principal accounts 46 
12.30 Subsidiary accounts 46 
Appendix 
Decision of the General Council of 11 July 1995 (WT/GCM/5) on procedure 
for decisions having financial implications which may be taken by WTO Bodies 47 WT/BFA/13 
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I. AUTHORITY AND APPLICABILITY 
1.10 Reference 
These Rules are established pursuant to Regulation 3 of the Financial Regulations of the World 
Trade Organization (WTO). 
1.20 Applicability 
These Rules shall apply to the regular budget of the WTO and to all other funds placed at the 
disposal of the WTO, except in so far as the applicability of special regulations and rules for such other 
funds is recognised by the Deputy Director-General in charge of Finance. 
1.30 Responsibility for implementation 
The Deputy Director-General in charge of Finance is responsible to the Director-General for the 
application and implementation of these Rules. He may delegate any specific authority vested in him 
pursuant to these Rules, as appropriate, to other officials of the WTO. 
1.40 Additional instructions to be issued by the Deputy Director-General in charge of Finance 
Within the framework of the Financial Regulations and these Rules, the Deputy Director-General 
in charge of Finance may issue such additional instructions or establish such procedures as shall be 
necessary to ensure effective internal financial control, sound administration of funds, and the exercise of 
economy. No changes in such instructions or procedures shall be made without the approval of the Deputy 
Director-General in charge of Finance. 
1.50 Responsibilities of the Director of Finance and General Services Division 
The Director of the Finance and General Services Division is responsible to the Deputy Director-
General in charge of Finance for the performance and/or supervision of all budgetary, financial and 
accounting operations. 
1.60 Approaches outside the WTO 
No approach shall be made outside the WTO or within the WTO with a view to obtaining funds 
or resources, or exemptions from existing financial regulations, rules or provisions of the WTO, except 
with the prior written authorization of the Director-General, the Deputy Director-General in charge of 
Finance or the Director of Finance and General Services Division. 
1.70 Responsibility for funds from external sources 
No official may accept responsibility for the handling or management of funds belonging to a 
government, or to any other body of an official or quasi-official nature with which he is associated by 
reason of his status as an WTO official, unless he has been specifically authorized in advance to do so on 
the basis of a decision by the Director-General. WT/BFA/13 
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II. PREPARATION OF THE BUDGET ESTIMATES 
2.10 Form of the budget estimates 
The budget estimates of the WTO shall be drawn up as prescribed in Regulations 5 to 9 of the 
Financial Regulations. Presentation of the budget estimates shall be both in an overall form and, to the 
extent possible, broken down according to divisions, i.e. in a functional format. 
2.20 Responsibility for the preparation of the budget estimates 
The Deputy Director-General in charge of Finance, with the assistance of the Director of Finance 
and General Services Division, shall be responsible to the Director-General for the provision of advice on 
budget and financial policy and for the preparation of the estimates of income and expenditure included 
in the budget proposals and budget documents for submission to the Committee on Budget, Finance and 
Administration and to the General Council. For this purpose he shall establish such procedures, criteria 
and deadlines as may be required to assure the timely presentation of sound and realistic budget estimates 
conforming to the Financial Regulations. 
2.30 Furnishing of cost estimates 
The Finance and General Services Division shall be responsible for the preparation of all cost 
estimates that may be required in connection with the activities of the WTO including estimates of the cost 
of all projects, trust funds, meetings, staff salaries and missions. No official shall issue cost estimates for 
use outside the WTO without prior written clearance of the estimates by the Director of the Finance and 
General Services Division. 
in. COLLECTION OF CONTRIBUTIONS 
AND OTHER INCOME 
3.10 Responsibility for collection of contributions 
The Director of the Finance and General Services Division shall be responsible to the Deputy 
Director-General in charge of Finance for collecting and accounting for contributions due from Members, 
as prescribed in Regulations 15 to 18 of the Financial Regulations. 
3.20 Accounting for receipts 
(a) All receipts shall be brought to account with the shortest delay possible. Assessed 
contributions received by the WTO shall be accounted as of the date of receipt in the WTO 
Bank Account. 
(b) Voluntary contributions, gifts or donations, which directly or indirectly involve additional 
financial liability for the WTO, shall be kept in a suspense account until their acceptance 
by the Committee on Budget, Finance and Administration has been authorized in 
accordance with Regulation 20 of the Financial Regulations. WT/BFA/13 
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3.30 Miscellaneous income 
Miscellaneous income consists of the following categories of receipts accruing to the WTO: 
(a) receipts from the sale of publications and the provision of services; 
(b) the difference between gains and losses on exchange; 
(c) savings on previous year's outstanding obligations; 
(d) overhead on Trust Funds; 
(e) receipts from the rental of meeting rooms and office space; 
(f) assessments from Observer Countries; 
(g) receipts of interest other than that required to be credited to Members in respect of the 
Early Payment Encouragement Scheme in accordance with Regulation 15 of the Financial 
Regulations or to be credited to the Working Capital Fund in accordance with 
Regulation 34; 
(h) refunds of expenditure of prior financial periods; 
(i) WTO cheques remaining uncashed for a period of twelve months after the date drawn; 
(j) other miscellaneous cash receipts. 
3.40 Proceeds from the sale of equipment, discounts or rebates 
Proceeds from the sale of equipment may be set off against the purchase of replacements provided 
that the sale and purchase occur during the same financial period; otherwise the proceeds shall be treated 
as miscellaneous income. Proceeds from discounts or rebates shall be credited to the corresponding 
budgetary account in order to offset expenditures of same nature. 
3.50 Acceptance of monies by officials 
(a) Wherever possible payments to the credit of the WTO shall be directed to a WTO bank 
account. 
(b) The Deputy Director-General in charge of Finance shall designate those officials who are 
authorised to accept money on behalf of the WTO and to issue official receipts. 
(c) Any other official receiving money on behalf of the WTO must immediately remit it in full 
to an official authorized to accept money or, where this is not possible, deposit it in a 
WTO bank account. Full details of such deposits shall be sent immediately to the Director 
of Finance and General Services Division. 
3.60 Furnishing of official receipts 
An official receipt shall be given for all monies received either in cash or by cheque. Receipts 
shall be drawn up in duplicate, and a copy of the original shall be retained. 
IV. APPROPRIATIONS AND ALLOCATIONS 
4.10 Responsibility of the Deputy Director-General in charge of Finance for the implementation of the 
approved budget 
The Deputy Director-General in charge of Finance is responsible to the Director-General for 
ensuring that the expenditure of the WTO under the regular budget remains within the appropriations as 
voted and that such appropriations are used only for the purposes approved by the General Council. WT/BFA/13 
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4.20 Responsibility of the Director of Finance and General Services Division to allocate appropriations 
in accordance with the Functional Budget 
The Director of Finance and General Services Division shall inform in writing the Directors of the 
amounts allocated to their divisions in accordance with the Functional Budget with the constraints limiting 
the use of these appropriations. 
4.30 Periodic review of the expenditure position 
(a) The Finance and General Services Division shall monitor the extent to which allocations 
are used and prepare reports for the Director-General on amounts currently allocated, 
obligated and expended, and expected future expenditure, under the allocations. 
(b) Divisional Directors shall be informed regularly of the expenditures and unliquidated 
obligations recorded against their own allocations provided under the Functional Budget. 
4.40 Transfers between items within the approved budget 
Transfers between sections of the expenditure budget shall be handled through the internal control 
system, subject to a report submitted by the Secretariat to the General Council for approval at the end of 
the financial period. 
V. CONTROL OF OBLIGATIONS 
5.10 Obligations to be incurred only by duly authorized officials 
No contract shall be concluded and no order shall be placed on behalf of the WTO except by an 
official to whom a formal authority to incur such obligations has been delegated by the Deputy Director-
General in charge of Finance. 
5.20 Proposals or drafts having financial and/or budgetary implications* 
(a) Any draft paper for the General Council which contains a proposal likely to have direct 
or indirect financial or budgetary implications shall be routed by the originating unit, or 
the officer to whom it reports, to the Director of Finance and General Services Division 
for financial evaluation and clearance before being submitted to the Deputy Director-
General in charge of Finance. 
(b) Advance clearance and financial evaluation must be obtained before seeking the final 
approval on any document or communication having a direct or indirect financial 
implication. 
* See Also Appendix. WT/BFA/13 
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5.30 Control of obligations 
(a) All contracts, appointments, mission orders, purchase orders, or other documents by which 
a financial obligation is to be incurred on behalf of the WTO must be submitted in advance 
to the Finance and General Services Division for financial clearance under Regulation 43 
of the Financial Regulations except as provided in subparagraph (d) below. 
(b) An authorised official of the Finance and General Services Division shall review the 
obligating documents submitted in the light of the applicable financial regulations and 
rules, the approved budget, and the available balances in the respective allocations. He 
shall also assure himself that the principles of sound economy are maintained. If the 
obligating document conforms with the above requirements, it shall be certified by an 
authorised official of the Finance and General Services Division that funds are available 
and have been reserved to meet the resulting expenditure. Approved obligations shall be 
recorded by the Finance and General Services Division. 
(c) No obligating document shall be released outside the WTO without the certification by an 
authorised official of the Finance and General Services Division that funds are available. 
(d) An authorised official of the Finance and General Services Division may issue lump-sum 
certificates to cover minor routine purchases. At the end of the period for which the 
certificate is issued, it shall be returned together with a record of the obligation incurred 
against it, and shall be supported by copies of the corresponding obligating documents. 
A lump-sum certificate shall be recorded in the accounts as a valid obligation, which shall 
be adjusted to actual obligations when the certificate is returned. 
5.40 Obligations to be incurred in conformity with the budget 
Obligations shall be incurred only in strict conformity with the relevant budget. All obligating 
documents submitted for financial clearance shall be accompanied by an indication of the appropriate 
accounting classification. In case of doubt, the correct classification against which any charge is to be 
made shall be determined by the Chief of the Budget and Control Section. 
5.50 Objection to proposed obligations 
If the Director of Finance and General Services Division cannot approve an obligating document 
submitted for certification he shall state his objections in writing. If the requesting official does not agree 
with the objection, the matter shall be referred to the Deputy Director-General in charge of Finance for 
decision. 
5.60 Adjustments of obligations 
If part or all of an amount recorded as an obligation is no longer required for the purpose 
originally foreseen the necessary adjustment shall be made immediately. WT/BFA/13 
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VI. PRESENTATION AND AUDIT OF CLAIMS 
6.10 Payments to be made on the basis of claims 
(a) Except for the payment of salaries, wages, regularly established allowances and amounts 
due under external collaboration contracts with individuals, no payment shall be effected 
unless claimed by the payee. Payments due under external collaboration contracts with 
individuals shall be made on the basis of payment requests submitted by authorised 
officials; such requests shall be treated in the same way as claims. 
(b) For each claim submitted, the claimant shall certify that the claim is fair and correct and 
that payment has not yet been received. 
(c) Where special forms for claims exist, claims must be presented on these forms. 
6.20 Claims to be supported by a copy of the order 
Claims submitted for payment must normally be supported by a copy of the relevant order 
showing, where applicable, the registration number of the corresponding obligation. 
6.30 Time-limits for the presentation of claims 
(a) Officials authorised to incur obligations shall ensure the presentation, within a reasonable 
period, of all claims payable. 
(b) Particular care shall be exercised to prevent arrear claims being made after the close of the 
financial period. 
(c) Claims in respect of officially authorised travel shall be submitted within one month after 
such travel has been completed. 
(d) Claims for overtime should be submitted within a week after such overtime has been 
completed. 
(e) Claims involving discounts for prompt payment shall be flagged and shall be processed 
with the minimum delay possible. 
6.40 Audit of claims 
(a) The Certifying Officer shall subject each claim to careful scrutiny before authorising 
payment, and shall maintain records of all claims processed for payment. 
(b) No claim shall be authorised for payment unless its validity has been clearly established. 
(c) Officials authorised to incur obligations shall supply the Certifying Officer with any 
information required in connection with the audit of claims. WT/BFA/13 
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6.50 Claims to be accompanied by receiving reports 
(a) Claims based on the furnishing of goods or services shall be submitted to the Certifying 
Officer together with a certified receiving report stating whether the goods or services have 
been furnished in accordance with the specifications of the order, and whether the claim 
is administratively approved for payment. In addition, the receiving officer shall certify 
that the goods received have been entered in the register of stocks or inventory. 
(b) The Deputy Director-General in charge of Finance may waive the requirement of receiving 
reports in the case of standard services such as public utilities, etc. 
(c) For goods delivered to a place outside Geneva, payment may be authorized upon receipt 
of documents provided that the goods were dispatched appropriately insured to their 
destination. A duly executed receiving report must be forwarded to the Finance and 
General Services Division immediately upon receipt of goods. 
(d) In the case of Rule 6.50(c) the official forwarding the claim shall certify that the goods 
were dispatched with appropriate insurance coverage. 
6.60 Safeguards 
(a) Officials authorised to incur obligations and the Certifying Officer shall take all necessary 
steps to avoid duplicate payments of claims. 
(b) Except where this is unavoidable, no official shall be assigned simultaneously any two of 
the following functions: purchasing and/or acceptance of goods or services, auditing or 
disbursing. 
6.70 Objection to a claim 
(a) When the Director of Finance and General Services Division objects to the payment of a 
claim in full or in part, he shall communicate his objection to the official presenting the 
claim. If the official does not agree with the objection, he may appeal through proper 
channels to the Deputy Director-General in charge of Finance. 
(b) If the Deputy Director-General in charge of Finance decides that a claim is to be paid 
notwithstanding an objection by the Director of Finance and General Services Division, 
his decision shall be reported to the external auditor. 
VII. PAYMENTS 
7.10 Vouchers to support payments 
(a) No payments shall be effected without satisfactory supporting documents. Except for 
payments made from cash advances these documents must show that the payment has been 
approved by a duly authorised Certifying Officer. 
(b) Whenever claims are received as a result of a written order by the WTO, a copy of the 
order shall be included with the supporting document. 
(c) No verbal authority shall be accepted for making any payments. WT/BFA/13 
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7.20 Payments to be made to duly entitled persons 
(a) Payments shall be made only to the persons to whom they are due, or to their legal 
representatives. A payment shall normally be made to a bank account in the name of the 
person to whom payment is due. 
(b) The Director of Finance and General Services Division may refuse to effect payment of 
any salary, allowance or other payment, to a third party claiming the payment on behalf 
of the person to whom it is due. If payments are made to such third party or a legal 
representative, the nature of the authority under which such payment has been made shall 
be stated on the supporting document. The cession or other authority shall either be 
attached to the supporting document, or the Director of Finance and General Services 
Division shall certify on the supporting document that a sufficient authority was produced. 
7.30 Officials authorized to make payments 
All payments shall be made by authorised officials of the Finance and General Services Division 
after approval by the Certifying Officer, except for payments made by: 
(a) members of the staff to whom cash is advanced for the purposes of the WTO; 
(b) representatives of the United Nations Development Programme when acting as agents for 
the WTO; 
(c) any other person specifically designated for this purpose by the Deputy Director-General 
in charge of Finance. 
7.40 Determination of rates of remuneration and reimbursement 
(a) Salaries and wages shall be paid in accordance with the relevant provisions of the Staff 
Regulation, or other applicable rules. All amounts deducted from salaries shall be paid 
as soon as practicable to the accounts to which these amounts are due. Contributions to 
the pension fund shall be transferred before the end of the month for which they are due. 
(b) Reimbursement for travel expenses and payment of any allowances to members of the staff 
shall be effected in accordance with the Staff Regulations or other applicable rules. 
7.50 Advance and progress payments 
The Director of Finance and General Services Division may authorise the inclusion in a contract 
of provision for such advance payments or partial payments for work in progress as may be required by 
normal commercial practice and the interests of the WTO. Except for cases where specific provision of 
this nature has been included in a contract with the approval of the Director of Finance and General 
Services Division and for cases covered by Rules 6.50(c) and 6.50(d), payment may be made only after 
the services or goods have been received. Claims for advance and progress payments shall be presented 
in accordance with Rule 6.50. WT/BFA/13 
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7.60 Time-limits for payments 
(a) Once it has been ascertained that a payment is in order, it shall be made with reasonable 
dispatch. 
(b) Proper attention shall be paid to claims offering a cash discount for prompt payment. 
(c) Payments made under the regular budget after the date set for the closing of the accounts 
of a given financial period are not allowed as a charge against that financial period unless 
an outstanding obligation duly documented has been established. 
7.70 Currencies of accounting and currency conversion rates 
(a) The accounts of the WTO shall be maintained in Swiss francs; however subsidiary 
accounting records may be maintained in other currencies. 
(b) The conversion rates used for internal accounting purposes, called the WTO rate of 
exchange, shall be set by the Deputy Director-General in charge of Finance. 
(c) Contributions received in a currency other than the Swiss franc shall be converted and 
credited at the bank rate of exchange at the time of receipt indicated by the value date and 
recorded at the WTO rate of exchange. Differences in exchange shall be accounted for 
under (j) below. 
(d) Salaries shall be paid in Swiss francs. The currencies in which the allowances of WTO 
officials may be paid (whatever the currency in terms of which the entitlement is 
expressed) shall be established by the Deputy Director-General in charge of Finance. 
(e) When allowances are paid in a currency other than that in which they are expressed, the 
rate of exchange used for the payment shall be the WTO rate of exchange applicable at the 
time of payment. 
(f) Advances relating to salaries, allowances (except with regard to Education Grants) and 
expenses of officials for which the entitlement is expressed in terms of a currency other 
than the Swiss franc, shall be recorded in Swiss francs at the WTO rate of exchange 
applicable at the time of the advance. 
(g) Education Grants: 
(i) Advances relating to Education Grants and made in US dollars shall be recorded 
in Swiss francs at the WTO rate of exchange; 
(ii) except for (g) (i) above, all other advances made for Education Grants in 
currencies other than the Swiss franc shall be recorded in Swiss francs at the bank 
rate of exchange applicable at the time of the advances; 
(iii) final settlement will be calculated as to effect full recovery of the amount 
recorded. WT/BFA/13 
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(h) When expenses incurred by officials or other persons to whom a payment is due from the 
WTO are reimbursed by the WTO in a currency other than that in which the expenses 
were incurred, the conversion rate used for the purpose of the reimbursement shall be the 
WTO rate of exchange applicable on the date on which the expenses were incurred, except 
in the following circumstances: 
(i) in cases of trust funds where the coordinator had to purchase the currency himself 
at a given date and produces a bank slip showing the rate at which it was obtained, 
the conversion shall be made at that rate; 
(ii) in cases of trust funds where a related advance has been made in a currency other 
than that in which the expenses are reimbursed by the WTO, the expenses incurred 
up to the amount of the advance shall be converted at the rate of exchange at 
which the advance was secured. 
(i) Where a third currency is involved, the local currency obtained by the conversion of the 
second currency shall be taken into account at the WTO rate of exchange and any 
difference as a loss or gain on exchange. Where an exchange rate for a third currency has 
not been established, it shall be calculated by applying the cross-rate with the second 
currency. 
(j) Exchange gains and losses resulting from the revaluation of regular budget assets and 
liabilities held in currencies other than the Swiss franc shall be accounted under 
miscellaneous income. 
7.80 Responsibility for payments 
An instruction from a superior official shall not relieve the Finance and General Services Division 
from responsibility for an irregular payment, unless the irregularity was pointed out by the Finance and 
General Division to the Director-General in writing before the payment was made, and the objection 
overruled. Any such overruling shall be given in writing and shall be reported to the external auditor. 
7.90 Ex eratia payments 
The Director-General may, on an exceptional basis, authorise such ex gratia payments as he deems 
to be necessary in the interests of the WTO. A statement of such payments shall be submitted to the 
external auditor with the relevant accounts. 
VIII. MANAGEMENT OF FUNDS 
8.10 Treasury management 
The Director of Finance and General Services Division shall be responsible to the Deputy Director-
General in charge of Finance for the treasury management of all funds in the custody of the Director-
General. 
8.20 Monies to be deposited in banks 
All monies not immediately required shall be placed in non-speculative accounts in such bank or 
banks of internationally recognised standing as the Deputy Director-General in charge of Finance may 
designate. WT/BFA/13 
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8.30 Operation of bank accounts 
Bank accounts shall normally be operated jointly by two or more officials to be designated by the 
Director-General. 
8.40 Investment of funds 
(a) Funds available under the regular budget and the Working Capital Fund may be invested 
in accordance with Regulation 35 of the Financial Regulations. 
(b) Other funds for which the Director-General is responsible shall be invested in accordance 
with any special regulations in force for such funds, or in the absence thereof, in similar 
manner to funds available under the regular budget. 
8.50 Loss of cash - cases of fraud 
Any loss of cash or negotiable instruments and any case of fraud, presumption of fraud or 
attempted fraud must be reported at once to the Deputy Director-General in charge of Finance who will 
ensure that appropriate follow-up action is taken in conformity with Rule 11.40. 
8.60 Exchange of currencies 
Officials responsible for the operation of WTO bank accounts, or for holding WTO cash or 
negotiable instruments, are not authorised to exchange one currency for another except to the extent 
required for the transaction of official business. 
IX. DESIGNATION OF CASHIERS AND ADVANCES OF FUNDS 
9.10 Designation of cashiers 
Officials who are to perform the function of cashier shall be designated by the Director of Finance 
and General Services Division. The exact duties of each cashier shall be notified to him in writing by the 
designating official. 
9.20 Establishment of operating cash advances (including Petty Cash advances) 
Operating cash advances (including petty cash advances) may be made to officials designated by 
the Director of Finance and General Services Division. The accounts for operating cash advances shall be 
maintained, normally on an imprest basis, in a form approved by the Director of Finance and General 
Services Division. The person issuing an advance shall specify in writing the amount of the advance and 
the purposes for which it may be used. The amount of the advance shall be held to the minimum 
compatible with working requirements. 
9.30 Accounting for operating cash advances 
(a) Officials to whom operating cash advances are issued under Rule 9.20 shall make use of 
such advances only for the purpose for which the advance was authorised and shall be 
personally responsible therefore. WT/BFA/13 
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(b) They shall render accounting as stipulated when the advance is made; such accounting, 
unless otherwise specified, shall be made not less frequently than once each month. They 
shall be in a position at all times to account for the advances. Cash and negotiable 
instruments shall be kept in safe custody. 
(c) Operating cash advances shall be replenished upon presentation of a claim for 
replenishment. These claims shall be made in the form prescribed by the Director of 
Finance and General Services Division or the person issuing the advance and shall list each 
expenditure made in sufficient detail to permit a proper classification and scrutiny of the 
expenses. Except as may have been specified when the advance was issued, each 
expenditure listed must be supported by a proper receipt. 
9.40 Other cash advances 
In addition to the operating cash advances referred to in Rules 9.20 and 9.30, the Director of 
Finance and General Services Division may make such other cash advances as may be permitted by the 
Staff Regulations or administrative instructions. 
X. PROCUREMENT 
10.10 Authorized contracting officials 
Contracts for the purchase of goods and services shall be entered into on behalf of the WTO by 
officials duly authorised by the Deputy Director-General in charge of Finance. 
10.20 Contracts Committee 
A Contracts Committee chaired by the Director of Finance and General Services Division will 
meet to consider purchases falling under the terms of Rule 10.30. A report will be made for each 
meeting of the Committee. 
10.30 Competitive bidding and advertising 
(a) Except as provided in Rules 10.30(c) and 10.40, whenever a single purchase of goods or 
services is likely to exceed 30,000 Swiss francs or the equivalent, tenders from at least 
three suppliers shall be sought by invitations to bid or by newspaper advertisement. 
(b) If a single purchase of goods or services is not likely to exceed 30,000 Swiss francs or the 
equivalent, such tenders may be sought; alternatively, an assessment of competitive 
prices shall be made whenever possible. 
(c) Rule 10.30(a) shall not apply to-employment contracts or to external collaboration 
contracts with individuals or for supply of the services of a particular individual. The 
financial criteria and procedures applicable to such contracts shall be approved by the 
Deputy Director-General in charge of Finance. WT/BFA/13 
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10.40 Exceptions to advertising requirements 
The Deputy Director-General in charge of Finance may waive the application of the Rule 10.30(a) 
in cases where he decides in the interest of the WTO to do so, and in particular: 
(a) when the prices or rates are fixed pursuant to legislation or by public regulatory bodies or 
when for other reasons there is no competitive market for the goods or services required; 
(b) when the purchases fall within an approved plan of standardisation of goods or supplies 
which renders competition impracticable; 
(c) when the exigencies of the service do not permit the delay attendant upon the issue of 
invitations to bid; 
(d) when the mandatory use of specific currencies renders this impracticable; 
(e) when competitive bidding has failed to give satisfactory results; 
(f) when the contract covers research work to be carried out by a non-profit-making 
institution; 
A record shall be maintained of all cases in which the application of Rule 10.30(a) has been 
waived. 
10.50 Awarding of contracts 
Wherever tenders have been sought or an assessment of competitive prices has been made, 
contracts shall normally be awarded to the supplier quoting the lowest price for an acceptable offer. 
However, when the interests of the WTO so require, any or all of the tenders may be rejected. Where 
a tender is rejected, under the provisions of this rule, the reasons for such rejection shall be recorded. 
10.60 Purchase to be made in writing 
(a) All purchases or contracts shall be made in writing, except for direct cash purchases made 
in accordance with Rule 9.20. 
(b) Where for any reason immediate cash payment cannot be made for goods or services 
ordered verbally, the order must be confirmed in writing without delay. 
10.70 Written findings 
Each determination or decision required of an authorised purchasing official by the provisions of 
these rules shall be supported by the written findings of such official. The written findings shall be placed 
in the appropriate files. WT/BFA/13 
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XI. PROPERTY 
11.10 Property records 
(a) Adequate records shall be maintained of real property; non-expendable and expendable 
equipment; supplies and materials received, issued, sold or otherwise disposed of, and 
remaining on hand. The Deputy Director-General in charge of Finance shall establish the 
nature and extent of the records to be maintained for the purposes of this Rule. 
(b) The records maintained in respect of supplies and property accounts shall in all cases 
indicate the official accountable for each item. 
(c) Control accounts shall be maintained recording the total value of capital assets purchased 
and sold, or otherwise acquired and disposed of. 
11.20 Physical inventories 
Physical inventories shall be taken of all supplies, equipment or other property of the WTO, or 
entrusted to the charge of the WTO, at such intervals as may be deemed necessary by the Deputy Director-
General in charge of Finance to ensure adequate control over such property. 
11.30 Use of property or services of the WTO 
(a) The property or the services of the WTO shall not be used for private purposes except 
where specifically authorised in the interest of the WTO by the Director of Finance and 
General Services Division. 
(b) The Director of Finance and General Services Division shall determine the amounts due 
to the WTO for the use of its property or services. 
(c) Goods or services of the WTO may be provided to Members, the United Nations, other 
specialised agencies, or other organisations on such terms and conditions as may be 
appropriate in each case. 
11.40 Treatment of cases of loss of assets, fraud or unrecoverable debt 
(a) The Director of Finance and General Services Division may authorise losses of cash, 
stores or other assets not exceeding the equivalent of 5,000 Swiss francs in each case to 
be written off if in his judgement the cost of recuperating the loss would exceed the 
amount to be written off, or if it is very unlikely that action to recuperate the loss would 
be successful. The Deputy Director-General in charge of Finance may authorize the 
writing-off of losses exceeding the equivalent of 5,000 Swiss francs. 
(b) All losses which are written off shall be included in the annual financial statements and 
submitted to the external auditor with the relevant accounts. 
(c) The Deputy Director-General in charge of Finance shall fix the responsibility for the loss, 
if any, attaching to any official of the WTO. Such official may be required to reimburse 
the loss either partially or in full, irrespective of whether the loss is covered by insurance 
or not. WT/BFA/13 
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(d) Any case of fraud, presumption of fraud or attempted fraud must be reported to the 
Director-General through the Deputy Director-General in charge of Finance. 
(e) Amounts written off and subsequently recovered after the close of the financial period in 
which the writing-off occurred shall be treated as miscellaneous income. 
11.50 Accounting for donated property 
Goods received and accepted by the WTO as gifts or entrusted to the charge of the WTO, shall 
be accounted for in the same manner as other goods' acquired by the WTO. 
11.60 Disposal of surplus property 
Surplus property having residual commercial value shall be disposed of by sale after competitive 
bidding unless the Deputy Director-General in charge of Finance in the interest of the WTO authorises a 
different method of disposal. 
XII. THE ACCOUNTS 
12.10 Responsibility for maintaining the accounts 
The accounts shall be maintained by the Finance and General Services Division as prescribed in 
Chapter IX of the Financial Regulations. 
12.20 Principal accounts 
The principal accounts shall consist of: 
(i) Statement of budgetary expenditure; 
(ii) Income and expenditure account; 
(iii) Surplus account; 
(iv) Statement of assets and liabilities; 
(vi) Separate accounts for the Working Capital Fund and for any trust funds or special 
accounts. 
12.30 Subsidiary accounts 
The Director of Finance and General Services Division may arrange for subsidiary accounts to be 
maintained in other services as required by day-to-day operations. WT/BFA/13 
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Appendix 
Decision of the General Council of 11 July 1995 (WT/GCM/5) 
on procedure for decisions having financial implications 
which may be taken by WTO Bodies 
WTO Bodies shall, before a decision is taken which may have financial implication, inform the 
Chairman of the Committee on Budget, Finance and Administration, and identify, in so far as possible, 
areas in their sphere of competence where compensatory savings could be achieved. On the basis of the 
analysis made by the Finance and General Services Division the Committee will then examine the financial 
implications and proposed funding, including the identification of existing WTO activities where savings 
could be achieved for the first start-up year and for the following on-going year(s), and forward such 
information to the General Council. With full knowledge of the financial implications and proposed 
funding, the General Council will then take a final decision. 