Module 2: Detailed Presentation

1. Module 2: Detailed Presentation UNDG Joint Funding Mechanisms Joint Programmes & Multi-Donor Trust Funds (incl. various types of MDTFs) Spring 2011

2. 2 By the end of this presentation, you will be familiar with: • The three joint programming funding mechanisms • Joint Programmes • Bilateral Cash Transfers • Multi-Donor Trust Funds (incl. Global Funds, Humanitarian Funds, Transition/Recovery Funds and Delivering as One Funds) • How to select an appropriate joint funding mechanism for your context? • Steps to establish JPs/MDTFs/DaO Funds • Key advice and considerations

3. Joint Programmes (JPs)

4. What is a Joint Programme? 4 “A joint programme is a set of activities contained in a common work plan and related budget, involving two or more UN organizations and (sub-)national partners. The work plan and budget will form part of a joint programme document, which will also detail roles and responsibilities of partners in coordinating and managing the joint activities. The joint programme document is signed by all participating organizations and (sub-)national partners.” UNDG Guidance Note on Joint Programming, 2003

5. Key elements of a Joint Programme I. Joint Programme Document: The JP Document is a standard template, common to all management options, which needs to be signed by all UN and relevant national coordinating authorities, and includes a common work plan and budget, information on coordination/communication mechanisms and a result framework and M&E arrangements II. Joint Programme Steering Committee: Coordination mechanism for the JP, facilitates the effective and efficient collaboration between POs and the host-Government for the implementation of the JP Composed of all signatories to the JP Document and may also have other members in an observer capacity 5

6. Key elements of a Joint Programme III. Legal Frameworks Standard programme and administrative documents for each of the three modalities To facilitate establishment, maintain standard provisions of the standard documents Any deviations to be cleared at HQ Available funding modalities: Pooled; Parallel; Pass-through or a combination 6

7. Pooled Fund Management 7 • Participating UN Organizations (PUNOs) work for common results with a common (sub-) national partner • Funds pooled together to one UN organization (Managing Agent) chosen jointly by PUNOs and in consultation with (sub-) national partners

8. Parallel Fund Management 8 • Interventions of UN Organizations are aimed at common results, but with different national, sub-national and/or international partners • Each UN Organization manages its own activities within the common work plan and the related budget whether from regular or other sources

9. Pass-through Fund Management 9 • Two or more Participating UN Organizations (PUNOs) develop a JP, identify funding gaps and submit a JP Document to donor(s) • Donors and funding agencies agree to channel donor funds through an Administrative Agent selected by all PUNOs • Common work plan will indicate clearly the activities supported by each PUNO

10. 10 JP Fund Management Options

11. 11 Deciding on fund management modality 2 OR MORE AGENCIES WORKING FOR THE SAME RESULTS? UN support provided through agency specific programmes NO JOINT PROGRAMME NO Working with the same impl. partner? Management/Implementation by one agency; coordination & joint monitoring POOLED FUND MGT YES YES Agency specific management/ implementation; coordination & joint monitoring NO PARALLELFUND MGT Agencies receive funds from a common donor? Agency specific management/ implementation; joint M&E and reporting; funds transfer by AA PASS-THROUGHFUND MGT YES YES Agency specific management/ implementation; coordination & joint monitoring PARALLELFUND MGT NO

12. 12 Establishing a Joint Programme • Based on best practices, it is recommended to follow a number of key steps in establishing a Joint Programme. • Steps to establish a JP using the pass-through fund modality: • Step 1: Convening of initial consultation between stakeholders • Step 2: Development of draft JP Document • Step 3: Decision to establish JP • Step 4: Decision on selection of Administrative Agent • Step 5: Finalization and signing of JP Programme Document • Step 6: Preparation of MOU and SAA • Step 7: Conclusion of MOU (minimum two UN orgs) • Step 8: Conclusion of SAA(s) with donors • Step 9: Convening of first JP Steering Committee meeting

13. 13 Key Considerations & Advice on Joint Programmes Programme and coordination issues: • Short of long-term programmatic needs? • Existing coordination mechanisms? Other joint initiatives? • Keep the structure of the JP manageable and strategic: # of involved agencies? • Use UNDG’s Joint Programme template • Governance: UNDG guidance on composition, need for support secretariat? • Clearly define roles & responsibilities of all stakeholders (also coordination tasks)

14. 14 Key Considerations & Advice on Joint Programmes Management issues: • Select appropriate fund management mechanism • Ensure that the agency selected as Managing Agent (pooled) or Administrative Agent (pass-through) has sufficient capacity to perform its functions; be clear about their roles • Use existing legal instruments (SAA/MOU) when establishing a JP; they are flexible enough • Seek guidance form the JF sub-committee, especially when deviating from standard tools Financial issues: • Resource mobilization strategy? What internal/external resources are readily available and what needs to be mobilized? • Financial viability of a JP?

15. Bilateral UN Contributions (aka Cash Transfers)

16. Multi-Donor Trust Funds (MDTFs)

17. 17 What is a Multi-Donor Trust Fund? • Multi-agency funding mechanism using the pass through mechanism. • Used in humanitarian, recovery/transition and development contexts at both the global and country level • Agency specific programmes and joint programmes may be funded through an MDTF • May be used to support funding gaps identified in UNDAF common budgetary frameworks or to support global/thematic funding objectives • Encourages multi-year, un-earmarked contributions.

18. Pass-through Fund Management 18 • Two or more Participating UN Organizations (PUNOs) establish an MDTF, identify programmatic needs, funding gaps and submit a proposals to donors • Donors and funding agencies agree to channel funds through an Administrative Agent selected by all PUNOs • ProDocs and/or work plans will indicate clearly the activities supported by each PUNO

19. 19 MDTF Architecture

20. 20 Individual Roles & Responsibilities Steering Committee Government Participating UN Organizations • Provides strategic direction and oversight • Sets allocation criteria • Approves programmes and allocations • Composition: Government representatives, UN RC, Participating UN Organizations; may include donors • Co-Chairs Steering Committee with overall coordination and oversight role to ensure resources are allocated in line with national priorities • Participates in the identification/formulation of projects with line ministries/decentralized structures • May provide cost sharing of programme activities • Implementing partners • Assume full programmatic and financial accountability for funds received • Operate under their own financial regulations, rules, policies and procedures • Conclude MOU with AA • Non-UN Orgs with international character may become Participating UN Organizations by concluding a separate MOU with the AA • Submit annual/final financial and narrative reports to AA • 7% indirect cost

21. 21 Individual Roles & Responsibilities Administrative Agent Donors Implementing Partners • Donors conclude standard SAA with the AA • Channel funding through the AA in support of Participating UN Organizations’ programmes • Donors may be members of the Steering Committee • National authorities and other national, regional or international organizations and NGOs support the achievement of results as Implementing Partners. • Funds may be transferred through a Part. Orgs who assumes full financial and programmatic accountability, using its standard procedures for transferring funds to Implementing Partners. • UNDG AA Protocol • Appointed by Participating UN Organizations • Receives and administers donor contributions on behalf of Part. Orgs • Disburses funds (incl. direct cost) to Part. Orgs as instructed by Steering Committee; • Consolidates reports from Part. Orgs for submission to donors; • Provide final reporting, including notification of operational completion • 1% AA fee

22. 22 M&E and Guidance • Monitoring & Evaluation • Each MDTF has its own M&E Framework • Standard provisions on M&E are defined in MOU • UNDG Overall Guidance and Policy Support • The UNDG Joint Funding sub-committee is the central place for training, guidance, knowledge management and support to UNCTs on joint funding mechanisms.

23. 23 Oversight and Audit • UNDG Oversight • Fiduciary Management Oversight Group (FMOG) provides oversight over individual MDTFs on issues related to financial accountability • When agreement cannot be reached at the country and/or Steering Committee level, fiduciary issues may be raised to the FMOG for resolution • FMOG also reviews deviations from the standard MOU, SAA and SC TOR. • UNDG Audit Framework • UNDG Audit Framework (2007) provides policies and guidance on auditing MDTFs

24. 24 How to Establish an MDTF (UNDG Guidance Note) • Step 1: Initial consultations between all stakeholders (UNCT, Govt, Donors etc.) • Step 2: Development of a Concept Note to access viability • Step 3: Decision to establish an MDTF • Step 4: Decision on the selection of an Administrative Agent • Step 5: Development of draft MDTF TORs and Steering Committee TORs • Step 6: Finalization of MDTF Terms of Reference • Step 7: Preparing to sign the MOU and SAA • Step 8: Conclusion of the MDTF MOU between PUNO (min. 2) and the AA • Step 9: Convening of the first Steering Committee meeting (9, 10 may be reversed) • Step 10: Conclusion of the MDTF SAA (min. 1 donor)

25. 25 Key Considerations & Advice on MDTFs Programme and Coordination Issues: • Existing coordination and joint funding mechanisms ? • Short or long-term programmatic needs? • Structure of programmes to be funded: joint programmes, individual agency projects, programmatic allocations? • Clear governance and allocation arrangements; involve appropriate stakeholders • Availability of sufficient capacity to support governance structures? • Use the UNDG Guidance when establishing your MDTF

26. 26 Key Considerations & Advice on MDTFs Management issues: • Manage so that you will get excellent, timely results for ultimate beneficiaries • Use existing standard documents when establishing an MDTF (they are flexible!) • Ensure that the agency selected as Administrative Agent has sufficient capacity to perform its functions and ensure clear about its role • Seek guidance from the JF sub-committee in case you have questions and especially if you want to deviate from standard tools Financial Issues: • Resource mobilization strategy: resident/non-resident donors? • Financial viability of proposed MDTF?

27. 27 Various types of MDTFs: • Global-level MDTFs • Country-level MDTFs (Humanitarian, Transition & Recovery, Delivering as One Funds)

28. 28 Global-level MDTFs • Established to strengthen UN programming support of specific thematic objectives shared by multiple agencies, such as MDGs, climate change etc • Examples of global MDTFs: • MDG Achievement Fund (Govt. of Spain – 58 recipient countries) • UN Peacebuilding Fund (UN peacebuilding architecture – 19 recipient countries) • UN-REDD Programme Fund (Reducing Emissions from Deforestation and Forest Degradation – 13 recipient countries) • UN Central Fund for Influenza Action (global and regional programmes) • UN Fund for Action Against Sexual Violence in Conflict • Examples of other pooled funding mechanisms: • Central Emergency Facility (CERF) • UN Trust Fund for Human Security (UNTFHS)

29. 29 Common Humanitarian Funds • Established as pooled funding mechanisms to support humanitarian activities • Under overall authority of the Humanitarian Coordinator (HC) • Intended to give the HC greater ability to target funds to the most critical humanitarian needs, encourage early donor contributions and enable a rapid response to unforeseen circumstances • Only humanitarian projects included in the UN and Partners’ Work Plan for the applicable country are eligible for funding • Work Plan outlines the annual strategic and operational plan for the UN and partners' assistance and is developed in consultation with national, regional and local authorities • Examples of Humanitarian Funds: • Central African Republic Common Humanitarian Fund • Democratic Republic of the Congo Pooled Fund • Somalia Common Humanitarian Fund • Sudan Common Humanitarian Fund

30. 30 Transition & Recovery Funds • Transition, Recovery and Reconstruction Funds are established to support the provision of recovery assistance and bridge the gap between the short-term emergency/humanitarian aid and longer-term development assistance. • Examples of current Transition, Recovery and Reconstruction Funds: • UNDG Iraq Trust Fund (2004) • Lebanon Recovery Fund (2006) • Darfur Community Peace and Stability Fund (2007) • UN Peace Fund for Nepal (2007) • Sudan Recovery Fund for Southern-Sudan (2008) • DRC Stabilization and Recovery (2009) • UNDG Haiti Reconstruction Fund (2010) • Indonesia Trust Fund for Disaster Recovery (2011)

31. 31 20 Delivering as One Funds(as of 11 March 2011) Albania One UN Coherence Fund Kyrgyzstan One UN Fund Montenegro One UN Fund Bhutan UN Country Fund Pakistan One Fund Cape Verde Transition Fund Viet Nam One Plan Fund I & II Sierra Leone MDTF Kiribati One UN Fund Ethiopia One UN Fund Tanzania One UN Fund Maldives One UN Fund Rwanda One UN Fund Comoros One UN Fund Papua New Guinea UN Country Fund Malawi One UN Fund Mozambique One UN Fund Lesotho One UN Fund Botswana UN Country Fund Uruguay One UN Coherence Fund

32. 32 Delivering as One – the concept A unified UN Country Team: • Thinks, plans and implements together • One Leader – One Budget – One Programme – One Office Working together in a more coherent and coordinated way • The UNCT improves its programme delivery and the quality and impact of its results Alignment of UNCT-activities with national priorities and procedures: • Paris Declaration on Aid Effectiveness and Accra Agenda for Action Draws on relevant technical capacity of all UN agencies: • Including non-resident agencies Respects the individual governance, mandates and rules of each of the UN agencies: • Not an attempt to merge or combine agencies • Seeks to harness agencies’ unique resources, define their comparative advantages and combine them in a unified strategic framework to unleash synergies and deliver more impactful programmes. Consolidated/harmonized/simplified governance, funding & management arrangements: • Delivering as One Funds / One UN Funds (MDTFs)

33. 33 What is a DaO Fund? • A DaO Fund is a country-level MDTF established as a vehicle to mobilize and receive donor contributions for the funding gaps identified in a common budgetary framework (in support of an UNDAF Action Plan) • As with MDTFs, based on standardized UNDG guidelines and documents, with adequate flexibility to meet the needs of a specific country context • Government and UN leadership (Co-chairing of Steering Committee) • Harmonized and consolidated reporting at the level of the UNDAF Action Plan (with financial reports at the level of the DaO Fund) • Often with funding allocations based on overall outcomes/results and annual work plans (not necessarily individual or joint programme documents) • Piloted by eight countries; currently 12 “self-starters”

34. 34 Key Considerations & Advice on DaO Funds Programme and Coordination Issues: • Overall programmatic framework: UNDAF/UNDAF Action Plan • Design the structure of the framework in a manageable way • Build on existing coordination mechanisms • Clear governance and allocation arrangements; involve appropriate stakeholders and ensure sufficient capacity to support governance structures

35. 35 Key Considerations & Advice on DaO Funds Management and Reporting Issues: • Use existing standard documents (they are flexible!) • Seek guidance from the JF sub-committee in case you have questions and especially if you want to deviate from standard tools • Ensure that the agency selected as Administrative Agent has sufficient capacity to perform its functions and ensure clear about its role • Ensure coherent reporting on UNDAF Action Plan and DaO Fund Financial Issues: • Resource mobilization strategy: Realistic assessment of availability of resources within/outside the country • Financial viability; could a stand-alone Joint Programme suffice?

36. 36 Next steps: Key Messages • The programme drives the mechanism • Joint funding mechanisms are tools to enable joint programming • Select the most appropriate mechanism for your context • Be realistic as to what you can achieve, incl. how much internal/external resources can be raised • Build on existing coordination mechanisms • Keep governance and approval structures simple and transparent • Ensure sufficient capacity to support governance structures • Focus on results and reporting • UNDG guidance is flexible: one-size doesn’t fit all • Seek guidance if in doubt

37. 37 Available Resources The UNDG Joint Funding sub-committee is the central place for training, guidance and support to UNCTs on joint funding mechanisms. Below is a list of available online resources: • UNDG Guidance Note on Joint Programming (2003) • UNDG Guidance Note on establishing, managing and closing MDTFs (2011) • UNDG Protocol on the Administrative Agent for Multi Donor Trust Funds and Joint Programmes, and One UN Funds(2008) • UNDG web-site: • http://www.undg.org/index.cfm?P=1370 • UNDP MDTF Office GATEWAY: • http://mdtf.undp.org/ • repository of information on all MDTFs/JPs administered by UNDP as AA

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39. Unite and Deliver Thank you