WIPO Members Discuss Tighter Programme and Budget Controls

A key group of member governments of the World Intellectual Property Organization today discussed further ways to tighten their control over WIPO’s budget and administration.

The 6 June informal meeting of the WIPO Programme and Budget Committee (PBC) was a step in a year-long process set up by the 2005 General Assembly (annual meeting of members) to insert member governments more fully into WIPO’s administrative activities following financial and personnel concerns raised last year.

On Tuesday, the committee informally agreed to a proposed mechanism for preparation and follow-up of the programme and budget drafted by the WIPO secretariat, according to participants. There were no substantive changes made to the proposal by the informal committee meeting, and it is expected to be forwarded to the next formal PBC meeting on 11-13 July, they said. That meeting is expected to come up recommendations to the September assembly.

WIPO’s budget currently runs on a two-year basis. The proposed mechanism would change the system in off-budget years to include a presentation to the September WIPO assembly of the internal auditor’s report. Then, in autumn, questionnaires would be distributed to member states to solicit their opinions on priorities for the next two years. In addition, an outline for the coming budget from the WIPO director general would be distributed, with informal consultations on it held in December.

In budget years, changes would include: a review of the revised budget, the previous year’s interim financial report, programme performance reports for the previous year, consideration of inputs from the WIPO Audit Committee and the external auditor, as well as from the internal audit function.

Other additions in budget years would be a review in the September PBC of issues raised by the Audit Committee or Internal Auditor, plus the September assembly’s adoption of the revised budget for the current biennium, and a presentation of the internal auditor’s report.

The PBC receives input from WIPO’s internal audit function, and reports to WIPO’s external auditor, the secretariat and the assembly. The PBC reviews WIPO’s biennial budgets after they are revised, examines the draft programme and budget for the next biennium, making recommendations to the assembly, and acts on recommendations from the WIPO internal auditor and the Audit Committee.

The proposed mechanism “strengthens the involvement of member states in the earlier stages of the design of the draft programme and budget,” according to the secretariat’s note for the informal meeting.

WIPO also said in the preparatory note: “It is evident from the first round of informal consultations that member states would wish to see the PBC engage in more substantive review and discussion of the draft programme and budget, to have greater involvement in its design and to have a greater role in reviewing previous programme performance in preparing programmes for the subsequent biennium.”

The January meeting of the PBC asked the Audit Committee to review a WIPO proposal for a CHF125 million new building construction (IPW, WIPO, January 14, 2006).