./.WORLD TRADE
ORGANIZATIONWT/BFA/61
6 December 2002
(02-6785)
ANNUAL REPORT (2002) OF THE COMMITTEE ON BUDGET,
FINANCE AND ADMINISTRATION
1. In accordance with the procedures for an annual overview of WTO activities and for reporting
under the WTO, adopted by the General Counc il on 15 November 1995 (WT/GC/M/8, item 11), a
report on the activities of the WTO Committee on Budget, Finance and Ad ministration in 2002 is
hereby submitted.
2. It will be recalled that the Committee met formally and informally on a number of occasions
and has presented reports to the General Council on a regular basis.1  This report will then cover the
major areas the Committee has dealt with in the course of the year to date.
I. ON-GOING RESPONSIBILITIES
3. The Committee monitored on a regular basis the financial and budgetary situation of the
Organization, the receipt of contri butions including the implementation of the related schemes and
measures pertaining to receipt of  contributions.  It formulated recommendations to the General Council
on assessment to the budget and advance to the Work ing Capital Fund subsequent to the accession of a
new Member to the WTO.  It considered elements  related to personnel management and heard progress
reports on the WTO Pension Plan.  It also examined: (i) the Director-General’s Budgetary and Financial
Report for 2001 and Report of the External Audito rs Thereon; (ii) the Divisional Reporting on
Objectives and Expenditures for 2001; (iii) the Re port on Extra-Budgetary Funds for 2001, and (iv) the
Director-General's budget proposals for 2003.  At the tim e of finalizing this report, the Committee is in
the final stages of its examination of th e Director-General’s budget proposals for 2003.
II. MAJOR AREAS OF ACTIVITIES
A. STAFFING OF THE WTO SECRETARIAT
4. As requested by the Members in 2001, the Co mmittee undertook an examination on staffing
matters including:(i) recruitment policy under Staff Regulations 3.1, (ii) internal staff mobility policy,
and (iii) promotion policy.
B. STRATEGIC ORGANIZATIONAL REVIEW OF THE WTO SECRETARIAT
5. The Committee had examined the report (WT/BFA/W/69), which had been prepared in early
November 2001 by the Human Resources Consultant, on the strategic organization review of the
                                                     
1Reports: WT/BFA/57 covering the meeting of 18 March 2002; WT/BFA/58 covering the meeting of
15 April 2002, WT/BFA/59 covering the meeting of 8 May 2 002, and WT/BFA/60 covering the meeting of
5 July 2002.WT/BFA/61
Page 2
organization.  In this respect, and at the request  of the Members, the Committee undertook an initial
examination of the possibility of an agreed termination scheme.
C. RESULTS -BASED MANAGEMENT
6. It is recalled that the Secretariat had been  implementing result-based budgeting since 1996 and
seeking to implement further recommendations in the report from an outside consultant presented to the
Committee.  At the request of a number of Memb ers, the Committee discussed the implementation of
result-based management in the WTO both formally and informally.  The Committee will continue the
discussion in 2003.
D. DIRECTOR -GENERAL ’S CONDITIONS OF SERVICE
7. The Committee was informed by the chairman  on the subject of the Director-General’s
conditions of service.  It was recalled that the Dire ctor-General’s conditions of service, which were not
subject to annual review to take account of infla tion, had not been reviewed since the package was
agreed in 1993.  After consultation with Member s, it was proposed that Members consider an
adjustment to take account of inflation in Gene va since 1993.  The General Council was informed on
and agreed to the proposed new package (WT/GC/M/76).
E. OTHER ITEMS
8. The Committee also discussed and/or was informed about the following points in the various
meetings:  (i) preliminary budget outline of the International Trade Centre UNCTAD/WTO for 2003,(ii) situation of contributions for the Doha Development Agenda Global Trust Fund (DDAGTF), and
(iii) WTO building facilities.
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