module two: undg joint funding mechanisms joint programmes & multi-donor trust funds lisa...

MODULE TWO:MODULE TWO:

UNDG Joint Funding Mechanisms UNDG Joint Funding Mechanisms Joint Programmes & Multi-Donor Trust FundsJoint Programmes & Multi-Donor Trust Funds

Lisa Doughten (UNICEF) & Amar Bokhari (UNDP MDTF Office)Lisa Doughten (UNICEF) & Amar Bokhari (UNDP MDTF Office)UNDAF Regional Planning Workshop

Bangkok, 15-18 March 2011

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How will you fund your UNDAF? How will you fund your UNDAF?

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Core/RegularResources

Non-core/OtherResources (bilateral)

Funding Gap

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Enhance coherence and

efficiency at country/global levels through:

Facilitate coherent and consolidated reporting

Enhance capacity to allocate resources

strategically

Mobilize resources jointly (with harmonized cost-

recovery)

Draw on comparative strengths of UN organizations,

including non-resident agencies

Respond to increased demand from donors to work jointly (Paris Declaration/Accra)

Joint Programmes & MDTFs enable you to:Joint Programmes & MDTFs enable you to:

Strengthen national ownership (country-level)

Strengthen programming support of specific thematic

objectives shared by multiple UN Organizations (global)

Joint Funding Joint Funding

Three joint funding mechanismsJoint Programmes, Bilateral Cash Transfers, MDTFs

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Steps to establish JPs/MDTFs/One UN Funds

How to select an appropriate mechanism for your country context?

Key advice and considerations

Joint ProgrammesJoint Programmes

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“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.”

Key Elements of a Joint ProgrammeKey Elements of a Joint Programme

1. Joint Programme Document

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2. Joint Programme Steering Committee

3. Standard Legal Agreements

Fund-Management ModalitiesFund-Management Modalities

1. Pooled Fund Management

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2. Parallel Fund Management

3. Pass-through Fund Management

A combination of the above

Pooled Fund ManagementPooled Fund Management

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Parallel Fund ManagementParallel Fund Management

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Pass-through Fund ManagementPass-through Fund Management

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Steps to establish a Pass-through JPSteps to establish a Pass-through JP

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1. Consult with stakeholders2. Develop draft JP Document3. Agree to establish JP4. Select Administrative Agent5. Finalize and sign JP Document6. Prepare MOU and SAA7. Conclude MOU (min. 2 UN orgs)8. Conclude SAAs with donors9. Convene 1st JP Steering Committee

JP Fund Management OptionsJP Fund Management Options

Pooled Parallel Pass-through

Standard Legal Agreements + JP Doc

MOU between UN orgs and the Managing Agent. + JP Doc.

No legal agreements. JP Doc sufficient

MOU between UN orgs and Admin Agent. Standard Admin Arrangement (SAA) between AA and donors+ JP Doc

Cost Structure

Managing Agent: regular agency indirect costs

UN Orgs: regular agency indirect costs

AA: 1% + PUNOs: 7%

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Bilateral UN Contributions Bilateral UN Contributions (cash transfers for small amounts)(cash transfers for small amounts)

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Multi-Donor Trust Funds (MDTFs)Multi-Donor Trust Funds (MDTFs)

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What is a Multi-Donor Trust Fund?What is a Multi-Donor Trust Fund?

• Multi-agency, uses the pass-through mechanism

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• Humanitarian, recovery/transition and development contexts

• Individual and/or joint programmes• Encourages multi-year, un-earmarked

contributions• Why MDTFs?– To fill funding gaps in UNDAFs– To support global/country thematic funding objectives

Types of MDTFsTypes of MDTFs

• Global (thematic) MDTFs

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• Country-level MDTFs:– One UN Funds (20 countries)– Common Humanitarian Funds (4 countries)– Transition and Recovery Funds (8 countries)

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20 One UN Funds20 One UN Funds

Uruguay

Cape Verde

Albania

Pakistan

Sierra LeoneViet Nam

Kiribati

Papua New GuineaTanzania

Rwanda

Mozambique

Lesotho

Kyrgyzstan

Bhutan

Comoros

Malawi

Montenegro

Botswana

EthiopiaMaldives

More info: http://mdtf.undp.org

What is a One UN Fund?What is a One UN Fund?

• A country-level MDTF

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• Fills UNDAF funding gaps (Common Budg. Framework)• Standard UNDG guidelines and agreements (flexibility)• Govt & UN leadership (co-chairing of Steering Comm.)

• Compatible UNDAF & One UN Fund reports

• Funding allocations usually based on overall outcomes/results and annual work plans

MDTF ArchitectureMDTF Architecture

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Steering Committee------------------

Secretariat

Administrative Agent (1%)

Participating UN Organizations (7%)

Implementing Partners

Task Teams

Donors

M&E, Reporting & OversightM&E, Reporting & Oversight

• Monitoring & Evaluation Agency- and MDTF-level

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• UNDG Oversight Deviations reviewed by FMOG

• Official Reporting Annually vs. Quarterly AA consolidates

Steps to Establish an MDTFSteps to Establish an MDTF(UNDG Guidance Note – 2011)(UNDG Guidance Note – 2011)

1. Consult with all stakeholders (UNCT, Govt, Donors etc.)

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2. Develop Concept Note to assess viability

3. Agree to establish an MDTF

4. Select an Administrative Agent

5. Develop MDTF TORs and Steering Committee TORs

6. Conclude MOU between UN organizations (min. 2) and AA

7. Convene first Steering Committee meeting (7, 8 may be reversed)

8. AA concludes Standard Administrative Arrangement with donor(s)

Key Considerations & AdviceKey Considerations & Advice

• Existing coordination & joint funding mechanisms?

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• What are the programmatic needs?

• Keep structure manageable

• Clear governance arrangements and allocation criteria

• Clarity on roles & responsibilities of all stakeholders (incl. AA, MA)

• Use existing UNDG guidance and templates (they are flexible!)

• Resource mobilization strategy (financial viability)

• Flag any deviation from standards

Remember:Remember:

• The programme drives the funding mechanism

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• Joint funding mechanisms are flexible tools

• Be realistic as to what you can achieve

• Build on existing coordination mechanisms

• Keep governance and approval structures simple and transparent

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Available ResourcesAvailable Resources

UNDG Joint Funding Sub-Committee: the central place for training, guidance and support to UNCTs on joint funding mechanisms

Online resources:oUNDG Guidance Note on Joint Programming (2003)

oUNDG Guidance Note on Establishing, Managing and Closing MDTFs (2011)

oUNDG Protocol on the Administrative Agent for Multi Donor Trust Funds and Joint Programmes, and One UN Funds (2008)

oUNDG web-site: • http://www.undg.org/index.cfm?P=1370

oUNDP MDTF Office GATEWAY: • http://mdtf.undp.org/ • repository of information on all MDTFs/JPs administered by UNDP as AA 25