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ONE UN ETHIOPIA BUSINESS OPERATIONS STRATEGY 2016-2020

The United Nations in Ethiopia-Transforming Ethiopia Together

BOS 2016-2020

Contents Page

Foreword from the UN Resident Coordinator 3

Signatory Page 4

Introductory Remarks by the OMT Co-Chairs 6

Acknowledgements 7

Abbreviations/Acronyms 8

Executive Summary 9

CHAPTER 1: INTRODUCTION 10

1.1. The Country Context 10

1.2. The UNDAF and the National Development Plan 11

1.3. Value drivers of BOS – global perspectives of BOS 11

1.4. BOS priority areas – summary 12

CHAPTER 2: BUSINESS OPERATIONS ANALYSIS 17

2.1. Stock Take Analysis 17

2.2. Needs Analysis 21

2.3. Cost-Benefit Analysis (CBA) 28

2.4. Prioritization 51

CHAPTER 3: RESULTS FRAMEWORK 52

3.1. Results Framework overview 52

CHAPTER 4: MONITORING AND EVALUATION PLAN 57

4.1. Monitoring and Evaluation Plan outline 57

CHAPTER 5: GOVERNANCE STRUCTURES AND ACCOUNTABILITY MECHANISMS

63

5.1. Arrangements and structures for BOS – roles and responsibilities 63

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CHAPTER 6: BUDGETARY FRAMEWORK 656.1. Resource requirements, cost sharing arrangements and the budgetary framework 65

ANNEXES 66

Annex 1. BOS Stock Take Analysis 67

Annex 2. BOS Result Matrix 68

Annex 3. TORs OMT and task teams/working groups 69

Annex 4. Membership list of OMT and task teams 84

Introductory Remarks from Ms. Ahunna Eziakonwa-Onochie, UN Resident and Humanitarian Coordinator

The Business Operations Strategy (BOS) is an important element of the Operating as One pillar of UN Delivering as One (DaO). It provides tools to address the operational gaps, coherence, efficiency, simplification and harmonization of business processes for strategic planning, coordination, and monitoring of the UN’s inter-agency operations activities. Following the UN Development Group’s (UNDG) guidelines, the United Nations Country Team (UNCT) adopted the BOS in 2013 and supported simplification and harmonization the UN’s business operations for successful programme delivery and impact in Ethiopia. During the UNDAF 2012 2015, BOS1.0‐ supported to reduce internal transaction costs, improve the quality of programme delivery and increase savings over external sourced goods and services. The UNCT, therefore, highly determined to support on the continuation of the BOS implementation in Ethiopia.

In line with the UNDAF 2016-2020, the Operations Management Team (OMT) and BOS Committee developed the BOS2.0 2016-2020 with the objective of providing a more systematic comprehensive approach towards the professionalization, harmonization and simplification of the UN’s business operations and common services to enhance quality, effective and efficiency on common service of all the UN Agencies, Funds, Programmes and Specialized Agencies. The BOS2.0 emphasizes the UNCT’s shared responsibility and commitment toward delivering results effectively and efficiently. Over the cause of BOS2.0 development process, the OMT and BOS Committee and Programme Management Team worked hand in hand and as a result, a great analytical BOS2.0 document was developed for next four years. The UNCT believes, the BOS 2.0 will provide a better direction to achieve USD 32 Million savings on material and labor cost by 2020.

I am very proud to present the BOS2.0 document that provides numerous opportunities of efficiency gain for the UN and I am certain that the UNCT is fully committed to provide necessary support to implement this document during the UNDAF’s cycle from July 2016 to June 2020.

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BOS 2016-2020

With Regards,

Ahunna Eziakonwa UN Resident and Humanitarian Coordinator

Signatory page

…………………………………………….Ms. Ahunna Eziakonwa-Onochie

UN Resident / Humanitarian Coordinator

…………..…………………….Mr. Amadou Allahoury Diallo

FAO, Representative to Ethiopia

…………..…………………….Mr. Ulaç Demirag

IFAD, Country Director

…………..…………………….Mr. George Okutho

Director, ILO Country Office for Ethiopia, Somalia, Djibouti, South Sudan and Sudan as well as Special representative to the AU and ECA

…………..…………………….

Ms. Maureen Achieng

IOM, Chief of Mission to Ethiopia and Representative to the AU, UNECA and IGAD

…………..…………………….Mr. Ramin Granfar

ITC, Country Manager for Ethiopia

…………..…………………….Mr. Andrew Rugege

ITU, Regional Director for Africa

…………..…………………….Mr. Idrissa OumarKane

OHCHR, Regional Representative a.i.

…………..…………………….Ms. Miriam Maluwa

UNAIDS, Country Director

…………..…………………….Mr. Dimitry Pozhidaev

UNCDF, Chief Technical Advisor

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BOS 2016-2020

…………..…………………….Ms. Joy Kategewaka

UNCTAD, Head of Regional Office for Africa

……..…………………….Mr. Samuel Bwalya

UNDP, Country Director

…………..…………………….Ms. Ingrid Cyimana

UNECA, Director of Strategic Planning and Operational Quality Division

…………..…………………….Mr. Samba Harouna

UNEP, Head of Liaison Office to AUC & ECA and Representative to Ethiopia

…………..…………………….Mr. Alaphia Wright

UNESCO, Director and Representative to Ethiopia, the AUC and ECA

…………..…………………….Mr. Faustin Yao

UNFPA, Representative

…………..…………………….Ms. Clementine Nkweta-Salami

UNHCR, Representative

…………..…………………….Ms.Gillian Mellsop

UNICEF, Country Representative

…………..…………………….Mr. Jean Bakole

UNIDO, Representative and Director of the Regional Office

…………..…………………….Mr. Haile Menkerios

UNOAU, Special Representative of the Secretary-General (SRSG) to the African Union

…………..…………………….Mr. Paul Handley

UNOCHA,Head of Office

…………..…………………….Ms. Maria Temesvari

UNODC, Officer-in-Charge

…………..……………………. …………..……………………. …………..…………………….

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BOS 2016-2020

Ms. Worknesh Mekonnen Gonet

UNOPS, Director to Ethiopia Operational Hub and Representative to AU

Ms. Letty Chiwara

UNWOMEN, Representative to Ethiopia, the AUC and UNECA

Dr.AkpakaKalu

WHO, Representative to Ethiopia

…………..…………………….Mr. John Aylieff

WFP, Representative and Country Director

Forward Message from Mr. Janvier Wussinu, BOS Committee Chair and OMT Co-Chair

By implementing the BOS1.0 from December 2013 to June 2016, the One UN in Ethiopia was able to gain approximately USD 17 Million savings over the reduction of transaction cost. Thanks to the Operations Management Team (OMT) and OMT Working Groups members, who provided their commitment, participation and continue support for the BOS1.0 implementation and without their dedication, the UN in Ethiopia would not be able to achieve such success within three years.

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BOS 2016-2020

In the development of the BOS2.0 2016-2020, the OMT and Programme Management Team (PMT) and the BOS Committee worked together to incorporate the UNDAF 2016-2020. With the level of participation and analytical support received from both OMT and PMT, it made possible to include a four year work plan together with the budgetary framework in the BOS2.0 to support the UNDAF joint work plan from July 2016 to June 2020. The One UN in Ethiopia projects to gain nearly USD 32 Million saving in material and labor cost by 2020 on the implementation of the BOS2.0. I believe the bove projected savings will be further enhanced with the impact of the recently developed Human Resources (HR) Roster for Local Consultants Support Service Staff, and Regional Long Term Agreement (LTA) database (upcoming).

Passing numerous challenges, I am pleased today on the finalization of the BOS2.0 with the great realization of efficiency gains, cost savings and quality improvement for the UN operations in Ethiopia. Throughout the BOS2.0 development process, Ms. Ahunna Eziakonwa, Resident and Humanitarian Coordinator along with the UNCT provided exceptional leadership to prepare a best BOS2.0 document. Hereby, I would like to sincerely thank the entire UNCT for their active support and contribution. In addition, with the support of the UNCT, the OMT was able to mobilize USD 273,080 from the UN Development Operations Coordination Office (DOCO) Innovative Facility to develop the BOS Monitoring and Evaluation (M&E) Tool and Regional LTA database for the East Africa. This is one of best achievements of the UNCT as One UN.

I wish to take this opportunity to thank all the OMT and OMT Working Groups, who are forerunners of the Operating as One pillar of UN Delivering as One (DaO) and the development of the BOS2.0. Particularly, my sincerer gratitude goes to Ms. Silper Pesa, OMT Chair, Mr. Saman Mastiyage Don, Common Operations Specialist and Mr. Getachew Sahle, BOS Consultant for their outstanding contributions for the finalization of the BOS2.0.

Janvier K. WUSSINU BOS Chair and OMT Co-Chair.

AcknowledgementsThe BOS2.0 2016-2020 was developed following the new guidelines provided by the United Nations Development Group (UNDG) Business Operations.

Strategy Guidelines:We would like to thank all those who have supported and contributed to the development of the BOS2.0, in particular:

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BOS 2016-2020

Mr. Janvier Wussinu (UNDP), BOS Committee Chair & OMT Co-Chair, Mr. Gurel Gurkan (UNOPS), BOS Expert & BOS Committee Co-Chair and Ms. Silper Pesa, OMT Chair and BOS Expert for their continued guidance;

Mr. Ayele Negesse (UNFPA), M&E Group Co-Chair for his feedback, and ensuring that the BOS is in compliance with results-based management principles.

Mr. Francis Mumbey-Wafula (UNOAU), OMT Co-Chair, Mr. Funmi Balogun (UNDP), PMT Chair for their support throughout the BOS2.0 development process.

Mr. Getachew Sahle, BOS Consultant, Mr. Saman Mastiyage Don, Common Operations Specialist and Mr. Yehalu Fisseha, Common Operations Associate for their contributions to BOS2.0 Retreat as well as the finalization of the BOS2.0.

Acknowledgements are also due to numerous other colleagues who have collaborated in collection of Operational data from UN Agencies, Funds, Programmes and Specialized Agencies in Ethiopia, and preparation of the relevant analyses.

For more information, please contact:UN Resident Coordinator’s OfficeUNECA Compound, Congo Building, 7th Floor, South WingAddis Ababa, Ethiopia Telephone: +251-115-444465www.et.one.un.org

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BOS 2016-2020

Abbreviation and Acronyms

AWP Annual Work PlanBOS Business Operations StrategyBPM Business Process MapCBA Cost-Benefit AnalysisCS Common ServiceDaO Delivering as OneDESA UN Department of Economic & Social AffairsDOCO UN Development Operations Coordination OfficeDSA Daily Subsistence AllowanceECOSOC Economic & Social CouncilHACT Harmonized Approach to Cash TransfersHLCM UN High-Level Committee on ManagementHR Human ResourcesICT Information Communications TechnologyKPI Key Performance IndicatorLTA Long-Term AgreementM & E Monitoring & EvaluationMOU Memorandum of UnderstandingOMT Operations Management TeamQCPR UN Quadrennial Comprehensive Policy ReviewRBM Results-Based ManagementRCO Office of the UN Resident Coordinator RDT Regional Director TeamSDF Sustainability Development FrameworkSLA Service Level AgreementSMART Specific, Measurable, Achievable, Relevant and Time-boundSOPs Standard Operating ProceduresTOR Terms of ReferenceTOT Training of TrainersUNCT UN Country teamUNDAF UN Development Assistance FrameworkUNDG UN Development GroupUNEG UN Evaluation GroupUNGM UN Global MarketplaceUNSF UN Sustainability FrameworkUNSSC UN System Staff CollegeVoIP Voice over IP (Internet Protocol)VSAT Voice Satellite

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BOS 2016-2020

Executive Summary

With the adoption of the Delivery as One (DaO) process, the United Nations Country Team (UNCT) in Ethiopia ambition to build on the comparative advantages of each UN Agency, Fund, Programme and Specialized Agency (hereafter UN Agency) to tackle the development challenges in Ethiopia by reducing redundancy, implement simplification of business processes, increase efficiency and quality of its operations to better deliver the UNDAF result. In order to achieve this ambition, the UNCT adopted since 2013 the Business Operations Strategy (BOS). The UNCT in Ethiopia considers Business Operations a critical enabler for effective delivery of UN development programmes. It is recognized that enhancing the link between the United Nations (UN) programming efforts and the operational implications deriving from that programme effort enhances efficient and effective programme delivery.

The implementation of the BOS2.0 in Ethiopia as shown in the last BOS Mid-term evaluation conducted by the UN Development Operations Coordination Office (DOCO) will obviously result in subsequent efficiency and effectiveness gains. The projections of the BOS2.0 based on conservative assumptions shows that we can save about USD 32Million over the United Nations Development Assistance Framework (UNDAF) cycle from July 2016 to June 2020.

Table 1.1 BOS2.0 Potential saving projections

OUTCOMES SAVING POTENTIAL (USD)

(%) REMARKS

Outcome 1 : Common Procurement 16,163,398 47.4Outcome 2: Finance 16,094,000 47.2Outcome 3: Harmonized Approach to Cash Transfer 442,590 1.3Outcome 4: Human Resources 1,421,500 4.1Outcome 5: Business Continuity Management & Information and Communications Technology

Quality Improvement

Outcome 6: Host Country Agreement/ Legal Quality ImprovementTotal 34,121,488 100

These benefits will not only provide additional resources left to programme implementation but will also improve quality of business operations as well as clear impact measurement of BOS2.0 through the use of the Information and Knowledge Management platform (IKM).The IKM platform helps to share information within the UNCT, relevant partners, and stakeholders including the Operations Management Team (OMT), Programme Management Team (PMT), UN Communication Group (UNCG) and other DaO pillars and Working Groups. The IKM platform in Ethiopia was developed and launched on March 2016 to facilitate the efficient use of intellectual capital and resources and ensure organizational knowledge and results are recognized, recorded and transferred for learning purposes. Currently, the IKM platform supports to simplify procedures and lower transaction costs by improving inter-agency communications. As a platform for information, file and knowledge sharing, it also supports to strengthen the efficiency and effectiveness of inter-agency working groups across all pillars of DaO. The platform intends to facilitate the collection, collation and reporting of progress and achievements to support evidence-based decision making and management in the future.

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BOS 2016-2020

CHAPTER 1: INTRODUCTION

In the Outcome document adopted at the 2005 World Summit in New York, global leaders called for stronger system-wide coherence across the various development-related Agencies, Funds, Programmes and Specialized Agencies of the UN. In addition to supporting ongoing reforms aimed at building a more effective and coherent UN country presence, the document invited the Secretary-General to “… strengthen the management and coordination of the UN operational activities”.

The last Quadrennial Comprehensive Policy Review (QCPR) 20121 resulted in key recommendations with regard to operations. Among them, the need to harmonize the UN’s business operations, the need to establish strategic linkages with programme and finally, the need to improve the results-based management (RBM) of UN operations focusing on quality, effectiveness and cost-efficiency with evidence.

In the area of business operations, the sheer size and scope of the UN’s work around the world offer tremendous potential for achieving economies of scale. However, progress in this area depends heavily on the ability of the UN development system to achieve efficiency improvements, as well as the interoperability of business systems, policies and procedures across entities. The report makes a number of recommendations in this regard, including proposing greater emphasis on delivering business services at the global and regional level through intra-agency rationalization, increased use of national systems in the implementation of programmes and projects based on thorough capacity assessment processes, and the development of a standardized system of cost control in order to arrive at a shared solution for measuring, monitoring and reporting on all cost categories.

The report also recommended that UN Agencies pursue higher quality, more effective and cost efficient support services in all programme countries. This could be achieved by reducing the duplication of functions and transaction costs through consolidating support services at the country level, either by delegating common functions to a lead agency, or establishing a common United Nations service center or, where feasible, outsourcing support services.

1.1. Country Context

Ethiopia is located in East Africa in the sub-region known as the Horn of Africa and borders with the Sudan and South Sudan to the west; Eritrea to the north and north-east; Djibouti and Somaliland to the east; Somalia and Kenya to the south. Ethiopia has an area of 1.14 million square kilometers and is the 7th largest country in Africa. The country's capital city, Addis Ababa, was founded by Emperor Menelik II in 1887. Ethiopia with a population of nearly 94.1 million is the second populous nation in Africa. The Ethiopian people are composed of different ethnic, religious and language backgrounds. The population is composed of more than 80 ethnic groups. In 1995 a Federal Democratic Republic of Ethiopia (FDRoE), comprising nine states and two chartered cities was proclaimed.

Ethiopia is a founding member of the UN and the African Union, with the latter's headquarters based in Addis Ababa. The UNCT’s work fully supports six out of the seven pillars of Ethiopia's Growth and Transformation Plan (GTP) through the UNDAF and focuses on Sustainable Economic Growth and Risk Reduction; Basic Social Services; Governance and Capacity Development; and Women, Youth and Children.

The presence of 29 resident UN Agencies in Ethiopia make the country host to one of the largest UNCT in the world. The UN in Ethiopia has voluntarily opted into the UN DaO reform agenda to streamline its contributions to helping Ethiopia meet its development objectives. An agreement was reached between the UNDG and UNCT in December 2012 to pilot the BOS in Ethiopia. Given the number of UN organizations and large volume of UN operations in the country, the BOS has the potential of leading to significant quality and cost-efficiency through the simplification and harmonization of the UNCT’s business operations.

1The QCPR is the primary General Assembly instrument to oversee how the UN development system operates in support of Member States development efforts.

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BOS 2016-2020

Ethiopia is one of the 9 pilot countries that had commenced implementation of their BOS framework. The first BOS cycle (BOS1.0) was implemented from December 2013 to June 2016. The country has successfully implemented the BOS1.0 and prepared the second BOS cycle (BOS2.0) that will be implemented from July 2016 to June 2020.The BOS2.0 enables the UNCT to take a strategic, results oriented approach to planning, management and implementation of Harmonized Business Operations at the country level. The BOS2.0 also includes a component aimed to reinforce the links between UN programmes and operational support needs. The BOS2.0 seeks to support the UNDAF implementation by aligning the operational and programmatic priorities.

1.2. The UNDAF and the National Development Plan

Ethiopia has implemented three UNDAF jointly developed by the Government and the UNCT. On December 2015, the UN and the Government of Ethiopia (GoE) signed the fourth UNDAF that will be in effect for four years from July 2016 to June 2020.

The current UNDAF 2016-2020 is the key programming instrument of the DaO process and is fully aligned to Ethiopia’s five year national development plan, the Growth Transformation Plan (GTP) in Ethiopia. The GTP is a national five-year plan created by the Ethiopian Government to improve the country's economy. It aims to ensure coherent, efficient and effective UN system operations in full alignment with national development priorities articulated in the GTP II and Sustainable Development Goals (SDGs). The UNDAF was developed through an intense process where the UN and the GoE worked together to align priorities and programs to the pillars of GTPII, and through GTP II to the SDGs.

The UNDAF is the common strategic framework for the operational activities of the UN system in Ethiopia. It provides a collective, coherent and integrated UN system response to national priorities and needs. As the overarching strategic programmatic framework for 29 UN Agencies in Ethiopia, the UNDAF promotes and benefits from strong Government ownership, and is guided by United Nations Development Group (UNDG) programming policies and the five key UNDG programming principles: a human rights-based approach; gender equality; environmental sustainability; capacity development; and results-based management.

1.3. Value drivers of BOS- global perspectives of BOS.

The overall value set for common business operations is the SDGs and related indicators. While planning and implementing the BOS, the OMT should look to ensure these value drivers are in place:

1. Effectiveness (programme delivery): The ability to meet programming needs through business operations support is the primary driver for common business operations. The ability of business operations to meet programme demands in a timely manner and with quality standards is a key factor in the effectiveness.

2. Efficiency (cost and speed of service (labor)): Common business operations focus on greater efficiency in meeting programmatic demands through a competitive price, or increased speed in service. This occurs without reducing the quality or timeliness of the required service. This includes the flexibility of business operations processes and staff to adjust the speed of service delivery to meet changing demands from the programme.

3. Access to services and quality: Some interventions in business operations may look to enhance quality or create access to new support services for programme implementation, which may not be accessible/ feasible without partnership or joint buy-in. Common business operations embraces effective service delivery practices, including systemic review of service quality and cost recovery practices.

4. Moving towards a risk based approach and away from mechanical compliance with rules: Business operations support is structured in line with local needs considering the circumstances and dynamics of country programmes. Identifying and managing risks allows for greater flexibility to respond based on needs, embracing cultural and operational change.

1.4. BOS Priority areas

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https://en.wikipedia.org/wiki/Five-year_plans_of_Ethiopia

https://en.wikipedia.org/wiki/Five-year_plans_of_Ethiopia


BOS 2016-2020

The BOS2.0 in Ethiopia has been built around six common service lines/pillars namely: Common Procurement (CP), Finance, Harmonized Approach to Cash Transfer (HACT), Human Resource (HR), Business Continuity Management & Information and Communications Technology (BCM & ICT), and Host Country Agreement (HCA)/legal. For Common Procurement, HR, Finance and HACT operational analysis and prioritization have been done. A result framework and Monitoring and Evaluation mechanisms have also been included for all BOS2.0 common service lines. Besides, annual work plans for each pillar from July 2016 to June2020 have been developed.

1.4.1. Common Procurement Working Group

Common Procurement is one of the key pillars with the highest potential for cost reduction and efficiency gain in the BOS2.0. Procurement of goods and services is essential for programme delivery. The joint effort in procurement by UN Agencies can bring a substantial cost reduction by using the bargaining power/economies of scale of the one UN to obtain reduction on unit price. Cooperation in procurement can improve relation with suppliers. It can increase value for money through improved planning, bulk discounts and better negotiation power; reduction of parallel processes and transaction costs and sharing of purchasing experience, information, and expertise and learning among UN Agencies. Procurement Working Group is working on developing a joint approach for Common Procurement in order to enhance quality, effective and efficiency on Common Procurement activities for all UN Agencies.

The followings are some of the activities performed by the Common Procurement Working Group in the BOS1.0cycle A market assessment was held by UNICEF to facilitate the creation of Inter-agency Long Term Agreements

(LTAs) for the provision of print production services. There are 91 active LTAs that have been uploaded to the IKM platform. A link of the LTA database has been

shared to OMT and working group members so that they can create account and access the data base. The inter-agency technical committee that lead by UNECA evaluated the current travel services that provide

service UN Agency in Ethiopia and extended the common travel service contact for another one year. In collaboration with the Addis Ababa Chamber of Commerce& Sectoral Associations (AACCSA), Common

Procurement Working Group and UN ECA conducted a one day seminar and 500 vendors attended in this training. The objective of this seminar was to create a platform for exchange of ideas between UN Agencies and the business community.

The Introductory Certificate in Public Procurement, level 2 training was held in conjunction with the UNDP and the Charted Institute of Procurement & Supply (CIPS), as part of capacity building program for UN procurement staff, was conducted. 38 procurement staff from 17 UN Agencies participated in the training

The UNCT/OMT has identified key priority areas of the working groups in the BOS2.0. These priority areas are:

1.4.2. HUMAN RESOURCE WORKING GROUP

Human Resource working group is one of the six pillars established under the OMT to perform different inter-agency activities related to recruitment and training. This Working Group has established in the first BOS cycle and performed the following activities.

The HR Working Group conducted the corporate survey/field visit to assess the cost of living and general and health condition in Gambella.

A Terms of Reference was finalized for the OMT to hire a consultant to establish a UN Roster for Local Consultants and Support Service Staffs.

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Establishing common LTAs on identified goods and services categories Providing joint capacity development trainings, workshops or seminars to the procurement

staffs and suppliers/vendors; Developing a regional LTA database and make accessible for Five BOS implementing countries in

East Africa.


BOS 2016-2020

UNDP worked with UN Agencies to update the Service Contract remuneration scale, and align them to relevant national staff salary scales and finalized. The Service Contract remuneration scale was updated and adopted.

Information on consultancy rate and administration policy was collected from 12 UN Agencies to harmonize the Local Consultancy rate of the UN Agencies in Ethiopia.

In order to ensure full participation of staff to the OMT and other Working Groups meeting an accountability framework has been prepared by the Working Group and endorsed by the UNCT.

The UNCT/OMT has identified key priority areas of the Working Groups in the BOS2.0 2016-2020. These priority areas are:

1.4.3. Finance Working Group

The Finance Working Group is one of new working group established by the OMT in April 2015. The working group will have three key priority areas in BOS2.0. The OMT aims to save USD 16 Million over the BOS2.0 cycle for the One UN from currency exchange transaction. In order to accomplish this target, UN Agencies in Ethiopia will work together to get the most favorable legally available rate for their foreign currency.

The second priority area of the working group is to conduct an annual banking survey and make an agreement with banks on behalf of all other UN Agencies. By doing this, there will be reduction in the banking fee and at the same time improvement in the quality of the banking service.

The third priority area is common Value-Added Tax (VAT) reclaim. Some UN Agencies claimed that every year they lost money from uncollected VAT. Thus, it will be better to coordinate VAT reclaim under the Finance Working Group and processed together to avoid the loss in revenue of UN agencies from uncollected VAT. As a summary, UNCT/OMT identified the following key priority areas for the Working Group.

1.4.4. Harmonized Approach to Cash Transfer Working Group

The Harmonized Approach to Cash Transfer (HACT) framework, which has been adopted by several UN agencies in Ethiopia, supports wider capacity development efforts to communicate expectations and requirements to Implementing Partners (IPs). The OMT continues to increase its support for capacity development training and to provide common understanding of financial management expectations within the UN system. The OMT will train finance staff in all the UN Agencies on HACT guidelines as well as increase awareness among IPs. The OMT will also continue to support the organization of common HACT micro assessments and audits for shared IPs of fully implementing HACT framework UN Agencies through HACT Working Group. The Working Group has been established in the first BOS cycle and performed the following activities:

A database of completed micro-assessments of UN’s implementing partners was established in the Information Knowledge Management platform with UNICEF, UNDP and UNFPA.

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• Establishing of joint advertisement & recruitment modality among UN Agencies.• Developing Joint learning programme e.g. Competency Based Interview (CBI) training for UN Staff.• Developing UN Roster of Local Consultants and Support Services staffs. • Harmonization of UN Agencies Policies for Medical Evacuation vs Medical Recovery in various regions.• Designing recognition and award framework to reward group and individual performances.• Harmonizing Internship modality of UN Agencies.• Harmonizing Local Consultancy Rate of UN Agencies.• Continuation of Conducting UN Field Office corporate survey.

Harmonize foreign exchange dealings Harmonize Banking service and get reduction in the banking fee and quality improvement Conduct joint VAT reclaim


BOS 2016-2020

Capacity development training for 18 Non-Governmental Organization (NGO) IPs and 49 Gov’t IPs was provided. A total of 140 participants: 33 from NGO, 96 from GO & 11 from UN Agencies participated on the capacity development training. UNICEF, UNFPA & UNDP with the support from RCO facilitated the training. The main objective of the training was to build awareness on the HACT principles and enhance the financial management capacity of IPs.

The UNCT in Ethiopia has signed UNICEF-led LTAs with two local audit firms for the HACT micro-assessment of the UN’s implementing partners, i.e. Merit Management Consulting firm and A.W.Thomas Limited Partnership on March 2015 and these LTAs will be active until March 2017.

The UNCT/OMT has identified key priority areas of the Working Group in the BOS2.0. These priority areas are:

1.4.5. Business Continuity Management & Information Communications Technology Working Group

Business Continuity Management Working Group and Information and Communications Technology Working Group were two separate Working Groups in the BOS1.0. Now, in the BOS2.0, the OMT decided to merge together and form one Working Group called Business Continuity Management & Information and Communications Technology (BCM & ICT) Working Group. The followings are the some activities that performed under this Working Group during BOS1.0:

Inter-Agency Business Continuity Management Framework to ensure business continuity and organizational resilience was established and endorsed by the UNCT. Besides, desktop simulation events were conducted. The inter-agency policy framework is a binding legal document, and focuses on making sure agencies develop the necessary mechanisms for organizational resilience.

Prepared ICT network consolidation for UN project business case with a purpose to realize DaO in Ethiopia via implementation of common ICT infrastructure.

Two Memorandum of Understandings (MoU) are in place. They are: to formalize the four alternate recovery site (UNECA, UNHCR, UNDP Regional Service Center and FAO) and International Livestock Research Institute (ILRI) as a concentration point (temporary relocation from the hazard) and alternate recovery site. These MOUs will establish a framework for cooperation and facilitate collaboration between UN Agencies in the event of any crises. These MOUs will be signed and formalized during the BOS2.0 cycle.

IKM platform in Ethiopia. A need assessment was conducted in November 2013 and based on its findings; the IKM platform was developed and launched in March 2016.

The IKM platform offers a portal for UN staff from all Agencies working in the country, both resident and non-resident, for interaction and exchange of ideas and knowledge. It is a tool that can contribute to optimization of the use of staff resources and time, and thereby improve quality and the cost of the organisation’s outputs.

The main functions of the IKM platform are:

A. Storage and Retrieval of documents: The IKM platform can act as an always accessible repository of day-to-day information, including for example Meeting Attendance Dashboards, Meeting Minutes, UNDAF and BOS documents, LTAs’ database and LTA M&E tool for on Common Procurement, Micro-Assessed IPs database on HACT, Roster for Local Consultants and Support Service Staff on Human Resources, etc.

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Ensure fully implementing HACT framework by UN Agencies that provide fund to IPs. Conduct joint HACT micro-assessment of shared IPs through a lead Agency. Conduct macro-assessment over the BOS2.0 cycle. Conduct joint scheduled audit of shared IPs through a lead Agency. Develop joint capacity development programmes on HACT for IPs and UN staff Prepare joint assurance plan for shared IPs Update regularly common HACT database of IPs on IKM. Provide comments to finalize the revision of Programme Implementing manual (PIM).


BOS 2016-2020

B. Virtual work space: The IKM platform can facilitate joint UN work with features to assist as common work rooms, discussion forums, and calendars. These spaces can be structured by Agency, by working groups and by other DaO pillars. The IKM platform allows editing of common work papers. For example the current ICT system allows for multiple users to work on the same document, e.g., the UNDAF, at the same time and enable easy tracking of changes, which in turn makes it easier to compile different inputs to a document and lessen the risk that of losing contributions as well as not having the latest updated version.

C. Internal communication to strengthen staff involvement and ownership of DaO: The IKM platform provides a tool for internal communication on staff issues. Not only for management to address or inform staff on change of regulations or changes in management but for staff to feel involved and have possibilities to influence and participate in some of the decision making. For example, Staff surveys can be easily done via the IKM platform and in different ways allows staff to comment and pose questions to management which is increasing opportunities for participation in the development of the organization.

D. Lowered transaction cost for programme management, planning and monitoring:

Membership of the IKM platform is open to all pillars & Working Groups of DaO and knowledge management focal points and staff members of all the UN Agencies in Ethiopia. The IKM platform permits self-registration of users. Based on the registration request, the Resident Coordinator’s Office (RCO) provides a role for account approvals.

The OMT, OMT Working Groups, PMT, Joint Policy Advisory Team (JPAT), UN Communication Group (UNCG), Gender Team Group (GTG), M&E and Joint Programmes (JP) will nominate at least one staff member as a focal point to the IKM platform. Those focal points shall be represented at the OMT BCM & ICT Working Groups to establish a two-way flow of information and knowledge, these representatives shall be mandated with reflecting on the work of the Working Group at the meetings of these inter-agency groups.

The UNCT/OMT has identified the following key priority areas of the Working Group during BOS2.0. They are:

1.4.6. Host Country Agreement/ Legal Working Group

Most UN Agencies working in Ethiopia have a significant field presence. As a result, it is important to provide sensitization training for government officials, law enforcement agencies and the UN staff on the UN’s privileges and immunities. Through the BOS2.0, the OMT will implement sensitization training as an inter-agency initiative to ensure quality of support to programme delivery, and to facilitate the implementation of DaO. The OMT will harmonize operational policies effectively and provide technical support to prepare supplemental agreements for all the UN Agencies and help to negotiate any disputes with host country authorities.

Under this Working Group, the following major activities were performed

The Working Group supported United Nation Department of Safety and Security (UNDSS) with resolving various cases, including cases from UNECA, UNOCHA and UNHCR.

Ad-hoc capacity development training was provided for local authorities on the UN’s mandate, work and legal status while holding discussions to resolve the issue.

The Working Group finalized the sensitization documents explaining the role and legal status of the UN in the country. These documents will be translated in to major local languages such as Amharic and Somali and will be delivered in sensitization workshops in the regions, with the aim of sensitizing local authorities to the UN’s role and

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Establishment of a common IT data center Finalize and operationalized joint/harmonized Business Continuity Management Framework Create a One UN network (common network) among UN Agencies Develop and update regularly the IKM platform Establish a common telephony service among UN Agencies Create a common internet service among UN Agencies


BOS 2016-2020

mandate. It is hoped that this activity will prevent UN’s rights from being infringed by local authorities in the future.

Sensitization workshops were conducted in five regional cities: Jigjiga, Assosa, Semera, Gambella and Hawassa. Senior level staff from Supreme Court, High Court and Police Commission and UN staff attended in the trainings. The purpose of the workshop was to provide guidance to the Ethiopian judiciary and law enforcing organs about the privileges and immunities of UN Agencies and the effect of the treaties and Headquarters Agreement ratified by the Government of Ethiopia (GoE).

In the BOS2.0, the UNCT/OMT has given priorities to perform the following common services under the Working Group. These are:

CHAPTER 2: BUSINESS OPERATIONS (BO) ANALYSIS.

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Harmonize operational policies of UN Agencies. Provide sensitization training on immunities and privilege of UN Agencies and their staff. Provide regular briefing to UN Staff on their privileges, immunities and obligations Assist the UNCT in the implementation of the host country agreements and the Convention on

the Privileges and Immunities of the UN. Work with the OMT Finance Working Group to negotiate and obtain suitable banking services as

well as VAT-exemption procedures. Work with the Ministry of Foreign Affairs (MoFA) for the acceleration of immigration and

customs procedures. Prepare Supplemental Agreement for UN Agencies


BOS 2016-2020

The Business Operations Analysis stage aims to assess the performance of existing common services and prioritize new services based on a Cost-Benefit Analysis (CBA). This stage provides the necessary information to the OMT to prioritize on the common service The Business Operations Analysis stage consists of the following three analyses: Stock Take Analysis (supply), Needs Analysis (demand) and Cost Benefit Analysis (CBA).

2.1. Stock Take Analysis

This is the first step in the Business Operations Analysis. It captures information like Key Performance Indicators (KPIs), baselines and targets from the existing common services to assess the performance and to identify the bottlenecks of the existing common services. The stock take analysis allowed the OMT to assess the performance of these common services in order to take the recommended action. This information is obtained from the evaluation of the previous BOS.

Since Ethiopia is a second generation BOS country, the stoke take analysis will include the evaluation of the BOS1.0 cycle. In this section, a short summary of the evaluation of BOS1.0 is presented and the more detailed analysis is provided in the annex 1 using stock take analysis template.

In BOS1.0, there were six common service lines/pillars/ namely: Common Procurement, Harmonized Approach to Cash Transfer (HACT), Business Continuity Management (BCM), Human Resources (HR), Information and Communications Technology (ICT) and Host Country Agreement/Legal (HCA). Besides, there was OMT coordination to support the common operations.

Each of these pillars had their own outcome and output statements, indicators, baselines and targets. One of the shortcomings of the BOS1.0 is that there was no appropriate monitoring and evaluation tools to monitor and evaluate the performance of each pillar. However, based on the data obtained from RCO, the evaluation result is provided below. The evaluation of performance ranking against KPIs of each pillar will be given as Green= target met; Yellow=target not met but on progress; Red= target not met and no progress.

A. Common Procurement (CP) pillar

There were 4 key performance indicators for this Working Group during the BOS1.0 cycle. They are:

1. Estimated labor cost savingo Baseline=$ 14,416,114o Target=$ 2,423,640

2. Estimated cost saving

o Baseline=$112,691,616o Target= $9,964,527

3. Number of joint LTAs in place

o Baseline= 1(travel)o Target= 8

4. Percentage of UN Staff satisfied with the quality of existing common services

o Baseline=0%o Target >=70%

The numbers of additional joint LTAs created during the first BOS are 3 (Printing, drivers’ uniform, HACT Micro-assessment). As a result, the labor cost and direct cost saving will not reach the amount stated in their respective targets. These targets will be achieved if the target in KPI 3 is attained. Thus, the performance ranking against KPIs of

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the first three indicators 1,2 and 3 will be target not met but on progress (yellow color). No data is available for the fourth key performance indicator.

B. Harmonized Approach to Cash Transfer (HACT) pillar

There were 3 key performance indicators (KPIs) for the HACT Working Group during the BOS1.0 cycle. They are

1. Number of IPs included in joint assurance and capacity development framework

o Baseline= 0o Target=250

2. Number of IPs that received joint capacity development support on HACT modalities, monitoring and financial management


3. Number of jointly audited IPs

o Baseline= 0o Target= 250

Based on the data obtained, 67 IPs received joint capacity development training on HACT. Hence, the performance ranking against KPIs of the first two indicators 1 and 2 is target not met but on progress (Yellow color). There were no jointly audited IPs during the BOS1.0, hence, the performance ranking against KPI of the third indicator is target not met and no progress (Red color).

C. Business Continuity Management (BCM) pillar

There were 2 key performance indicators (KPIs) for this Working Group during the BOS1.0 cycle. They are

1. Business Continuity Framework for the UN premises in Addis Ababa operationalized.

o Baseline= Noo Target= Yes

2. Number of operational business continuity framework in place for the UN premises in the field


Based on the data obtained, an Inter-Agency Business Continuity Management Framework to ensure business continuity and organizational resilience was established and endorsed by the UNCT and Two Memorandum of Understandings (MoU) are prepared but not signed. These MoUs are a requirement for operationalize the business continuity framework. Thus, the performance ranking against KPI of the first indicator is target not met but on progress (Yellow color). On the other hand, there was no operational business continuity framework in place in the field. Thus, the performance ranking against KPI of the second indicator is target not met and no progress (Red color).

D. Human Resource (HR) pillar

There were 4 key performance indicators (KPIs) for this Working Group during the BOS1.0 cycle. They are:

1. Estimated labor cost saving through the use of Roster of Local Consultants

o Baseline=$ 2,123,200

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BOS 2016-2020

o Target= $988,800

The UN Roster of Local Consultants and Support Service staff was not created in the BOS1.0. Thus, the performance ranking against KPI for this indicator is target not met and no progress (Red color).

2. Technical note on harmonized Rest and Recuperation (R & R) policies and procedures prepared and shared with the International Civil Service Commission (ICSC) for endorsement

o Baseline= Noo Target= Yes

Based on the data obtained, this activity is fully performed by the Working Group. Thus, the performance ranking against KPI of this indicator is target met (Green).

3. Rates for local consultants harmonized

o Baseline= Noo Target=Yes

Harmonizing of local consultancy rate was not finalized in the BOS1.0. But the process has already been started by hiring consultant to harmonize the consultancy rate of UN agencies. Thus, the performance ranking against KPI of this indicator is target not met but on progress (Yellow color).

4. Number of field locations assessed for staff issue

o Baseline=0o Target=3

Staffs from HR working group, OMT and RCO have made a field visit to assess the cost of living, general and health condition in Gambella in the BOS1.0 cycle. Thus, target is not met but there is progress and the performance ranking of this indicator against KPI is Yellow color.

E. Information and Communication Technology (ICT) pillar


1. The UNCT IKM platform launched and accessible by all UN Agencies.

o Baseline: Noo Target=Yes

2. The ICT Business Case on network consolidation is finalized and endorsed by the UNCT

o Baseline=Noo Target= Yes

3. The percentage of 13 UN Agencies’ network uptime

o Baseline= 98%o Target >= 99%

The UNCT IKM platform has already been launched on March 2016 and made accessible by all UN Agencies. Thus, the performance ranking of this indicator against KPI is target met (Green color).

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BOS 2016-2020

The ICT Business Case on network consolidation is finalized but not yet endorsed by the UNCT. Thus, the performance ranking of this indicator against KPI is target not met but on progress (Yellow color). No data is available for the third key performance indicator.

F. Host Country Agreement/Legal Pillar


1. Technical and administration support provided to high level negotiation with government on HCA of UN Agencies

o Baseline = Noo Target =Yes

2. No of regions that received information materials on the UN’s working methods and legal status (local language)

o Baseline = 0o Target = 3

3. Number of federal and regional government agencies participated in the sensitization workshop

o Baseline = 0o Target = 12 regional & 4 federal agencies

Based on the data obtained,

Technical and administration support was provided to the high level negotiation with government on HCA of UN Agencies. Thus, the performance ranking of this indicator against the KPI is target met (Green color).

No region received information materials on the UN’ working method and legal status using local language. Hence, the performance ranking of this indicator against the KPI is target not met and no progress (Red color).

Five regional government agencies were participated in the sensitization workshop on UN working methods and legal status. However, there was no any federal government agencies participated in the sensitization workshop. Hence, the performance ranking of this indicator against KPI is target not met but on progress (Yellow color).

G. Support to the coordination of common operations

There were 3 key performance indicators for the OMT during the BOS1.0 cycle. They are

1. Number of staffs who participated in a capacity development workshop of operations

o Baseline= 0o Target = 80

2. Number of staffs who received capacity development support on International Public Sector Accounting Principles (IPSAS)


3. Number of OMT annual reports prepared and shared with the UNCT


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BOS 2016-2020

RCO had organized different capacity development workshops on Result Based Management (RBM) and on the International Public Sector Accounting Service (IPSAS). Besides, the OMT prepared annual reports twice in a year and shared with the UNCT. Thus, the performance rankings of the above indicators against KPIs are target met (all are Green colors).

2.2. Needs Analysis

The needs analysis identifies the demand for possible new common business operations. It focuses on ‘what the UN agencies need’ and when they need it’. It identified needs arising directly from programme needs (UNDAF) and non-programme related demand for common business operations that will reduce cost (cost avoided) and enhance quality.

During the BOS awareness retreat, that brought together the PMT and the OMT, some key business operations have been identify as enabler to programme implementation e.g. Joint procurement, Joint premises/offices in the field, Consultancies (e.g. pre-qualification of consultants, Joint programming + OMT Development of Operational Framework for UNDAF (capacity of staff; procurement requirements etc.).

From the internal OMT and other working group discussions, some key common services not directly linked to the UNDAF implementation but which ultimately contributes to it have been identified, e.g. Procurement /LTA arrangement, Harmonization of the UN Agencies Policies for Medical Evacuation vs Medical Recovery in various regions, Joint learning programme, and Induction programs for UN Staff and so on.

BACKGROUND

Ethiopia is one of the pilot countries for Delivery as One (DaO). The OMT has been working in Ethiopia since 2009 to support the bid “operating as one”. It established a Common Procurement Working Group that brings together the procurement personnel from different UN agencies. It has been noted that in many instances, programme implementation has been delayed by slow and very cumbersome operations actions to support delivery. The Common Procurement recognized that setting up common LTA’s with key suppliers will improve overall efficiency to quickly deliver and better support programme implementation. These LTAs are either developed jointly or through a lead Agency with inputs from other Agencies and will avoid the duplication of each agency to go through the same process one by one. Only few common long terms agreements (LTAs) are already in place in the area of common procurement. These are

The UNECA-led agreements with two local agencies Airlink and Gashem travel services for travel services that are used by a majority of the UN agencies

UNICEF-led printing service LTA for driver’s uniform. First it was led by the WFP but now it is under a process led by UNDP to create

another long term agreement with the supplier-China UNDP. UNICEF-led LTAs were established with two local audit firms for the HACT micro-assessment of the UN’s

implementing partners, i.e. Merit Management Consulting firm and A.W.Thomas Limited Partnership. These LTAs will be active until March 2017

In consultation with the PMT during the BOS awareness retreat, and other subsequent meetings, between OMT and Procurement working Group members, taking into account the various Agencies needs, the OMT has decided to incorporate the following 28 additional categories of goods and services for the creation of inter-agency arrangements (or about 5 LTAs per year) in BOS2.0. These procurement categories are:

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BOS 2016-2020

Creating common LTAs of the above categories of goods and services will bring reduction in the transaction cost and the One UN will obtain a significant amount of saving through leveraging the economies of scale while procuring these goods and services. Among these categories of goods and services, common LTA for motor insurance has been signed

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IT Equipment including Computers, Printer and Toners and Technical Support

Spare Parts including tires. Stationery including Printing Paper Catering service Electrical equipment Office Equipment including Furniture Uniform / clothing Hotel and Conference Facilities Communication and production (video) Translations/ Interpretation Custom Clearance (Company) Advertising Services Vehicle Insurance Vehicle Maintenance Postal and Currier Services including Cargo Cleaning services (Company) Temporary Driving Services (Company) Messenger Services (Company) Security Guard Services Transportation Rental Trucks Transportation Rental Bus Transportation Rental Car Printing Services Warehouse/ Storage Rental Event management Generator & Electro Mechanical Services Maintenance (IT Equipment/ photocopier) Technical Consultancies and Training Services (includes: surveys, M&E,

design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )


BOS 2016-2020

between UNDP on behalf of other UN Agencies and Awash Insurance Company on April 2016. This LTA is uploaded on the IKM platform. Similarly, UNDP has signed 34 common LTAs for Hotel and conference facilities services in Addis Ababa on behalf of other UN Agencies on April 2016. But, common LTAs for hotel and conference facility service in the regions are not yet finalized. Both categories are included here to show the saving from using them by UN Agencies. In 2014, all UN Agencies spent a total amount USD 38 million in the above listed categories of goods and services (see annex 1 for categories of goods and services procured by UN Agencies in 2014).

Hence, the working group will support the development of inter-agency Long Term Agreements (LTAs) at the local level and upload them to the Information and Knowledge Management (IKM) System to make available for the use by all UN Agencies.

The UNCT/OMT in Ethiopia has decided to create 28 common LTAs during the BOS2.0. In order to maximize the benefit obtained from utilizing these joint procurement activities, there is a need to provide capacity building training to the UN procurement staff and suppliers/vendors. Most UN Agencies have provided training only to their procurement staff but not to the suppliers/ vendors except one instance organized by UN ECA in collaboration with Ethiopian Chamber of Commerce. Thus, building the capacity of the UN procurement staff and suppliers/vendors by providing different trainings, workshops or seminars during the BOS2.0 is taken as another priority area for the Working Group.

Since the Ethiopian markets are not developed, and some goods and services are not available in an acceptable quality, UNCT is often forced to order these from another country in the region. Thus, by considering the demands and needs of 29 UN Agencies in Ethiopia and growing development and humanitarian efforts in the African region, the UNCT determines the needs of establishing Common Procurement &Services Unit (CPSU) in Ethiopia to create a regional LTAs database as well further development of the local LTAs database.

The Common Procurement Working Group established a Common Procurement Management System (CPMS). The CPMS currently only include the data, information and agreements provided by the UN Agencies who are active in the Common Procurement Working Group in Addis Ababa. But a more systematic approach is needed to map the suppliers, vendors and service providers who are working across the country, particularly at the field level. However, there is no regional LTAs database available to conduct Joint Common Procurement activities at the regional level which will not only benefit for UN Agencies in Ethiopia but also other BOS counties in the African region. Thus, t he development of Regional LTA database, identification of key regional suppliers and mapping exercise will help other BOS countries to better piggyback on each other’s process and access wide range of products and services at a better price and with a reasonable time. This is also taken as key priority area in the BOS2.0 for the Working Group.

The UNCT/OMT in Ethiopia has decided to create additional 28 common LTAs during the BOS2.0. In order to maximize the benefit obtained from utilizing these joint procurement activities, there is a need to provide capacity building training to the UN procurement staff and suppliers/vendors. Most UN Agencies have provided training only to their procurement staff but not to the suppliers/ vendors except one instance organized by UN ECA in collaboration with Ethiopian Chamber of Commerce. Thus, building the capacity of the UN procurement staff and suppliers/vendors by providing different trainings, workshops or seminars during the BOS2.0 is taken as priority area for the Working Group.

The Common Procurement Working Group collected LTAs 91 LTAs created by individual Agencies (73 LTAs by UNICEF, 8 LTAS by WFP, 6 LTAs by UNOPS, and 4 LTAS by FAO) and uploaded on IKM and make them available in an online database system for other UN Agencies can piggy back. This will help to assess the use of LTAs as well as to support UN Agencies to use the LTAs effectively and efficiently. However, among these LTAs, 37 of them are not renewed after their expiry date but Agencies are still using them. This will create a problem because the supplier may refuse to supply at the price specified in the LTAs or may not be accountable for the quality of the product supplied. Hence, there is a need to monitor the utilization of LTAs and follow up the renewal of LTAs before their expiry date. The UNCT/OMT takes this activity as one of the priority area for the common procurement working group.

In the area of HR, one of the key common services identified is the establishment of joint advertisement and recruitment panel. This will avoid the duplication of effort, save time and reduce cost. Besides, it will also help to share best practices and expertise among the UN Agencies. This will not only allow us to better harmonize our processes but

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BOS 2016-2020

also will help us to come up with an interagency Roster of temporary consultant, recommended candidates from various recruitment processes.

The second key common services area identified for HR Working Group is the development of joint learning programme. This will bring better information sharing about the DaO in Ethiopia through common induction and also better motivate our colleagues supporting the BOS process. In the BOS2.0, the OMT planned under the joint learning programmes to provide Competency Based Interview (CBI) training for the HR staff in UN Agencies in order to maximize staff motivation and performance across programmes and operations. Additional training plans will be developed and implemented on an annual basis according to needs identified by the PMT and the OMT.

Many instances showed that there was no full participation of staffs to OMT and working group meetings. As, a result, the UNCT/OMT has decided to develop an accountability framework to recognize and award to individual providing outstanding service to client, brought innovative ideas for OMT and working group, Inspire and motivate colleagues to advance the mission and live by the values of the United Nations and shows outstanding achievement in the OMT/WG’s work .Thus, the UNCT/OMT takes this activity as key priority area for the HR Working Group in the BOS2.0.

The common roster is expected to shorten recruitment and selection procedures, save time and money, i.e., time/money saved on adverts, short-listing & testing, foster collaboration instead of competition amongst UN Agencies, be ideal for short-term assignments (e.g., maternity leave replacements). The objective of the roster is to provide UN Agencies with quick access to pre-screened candidates and “tried and tested” consultant profiles. This would reduce recruitment cost, accelerate appointments for short term assignments‐ and provide cost effective and timely HR support resulting in increased programme efficiency. Thus, the UNCT/OMT takes the development of UN Common Roster of Local Consultant and Support Service Staff platform and make accessible to all UN agencies as the key priority areas of the HR Working Group in the BOS2.0.

In Ethiopia, different UN Agencies have different consultancy rates. This will make difficult for some agencies to get consultants due to the variation among UN agencies. Besides, there is variation in the internship modality of UN Agencies in terms of age, educational qualification and amount of payment. Thus, the UNCT/OMT has emphasized the need to harmonize both consultancy rate and internship modality among UN agencies and takes as key priority area for HR WG in the BOS2.0.

In the area of BCM & ICT, the identified key priority areas are: Finalizing and operationalizing of Business Continuity framework in UN premises in Addis Ababa and UN field office, create common network (One UN network), common internet service and common telephony service among UN Agencies and providing BCM and ICT capacity building training for UN Agencies. These services and set up will enhance the resilience of the entire UNCT to cope with crises situation and continue working and managing the critical processes.

In the area of finance, many UN Agencies and their IPs that work under the National Implementation Modality/HACT/maintain their bank accounts with the Commercial Bank of Ethiopia and the National Bank of Ethiopia. This is because of the Commercial Bank of Ethiopia (CBE) is a government bank and it provides wide network of branches, has strong asset and capital base. It is also generally believed that there is implicit government guarantee for the account holders. However, some UN Agencies reported that their IPs face frequent delays in fund transfer which results in IPs not being able to carry out their activity as planed in the work plan and it causes to report delay and low delivery.

Thus, UN Agencies are required to conduct regular banking surveys. Such surveys help to identify the types of banking services available to UN Agencies, the quality of the services, and the fees and rates charged. Based on the survey results, UN Agencies will be able to identify the types and levels of services provided, based on which negotiations can be made for improved services and service agreements signed with the bankers on a competitive basis on behalf of other UN Agencies. As, a result, the UNCT/OMT has identified this activity as key priority area for the Finance Working Group in the BOS2.0.

The National Bank of Ethiopia issued a new directive in February 2014. According to this directive, the foreign exchange rate has been fixed at the minimum rate and banks are required to offer the lowest / buying exchange rates to UN

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BOS 2016-2020

Agencies whenever later sell foreign currency to banks. Before the issuance of the directive, UN Agencies were able to negotiate the exchange rate with banks and sell foreign currency at the maximum available rate, the selling rate. According to the results of the survey conducted by the Working Group, it was estimated that the UN system in Ethiopia lost more than USD 7.8Million in 2014, which is equivalent to a 2% decline of the total amount of foreign currency converted into Ethiopian birr by UN Agencies in 2014.

The data collected from these Agencies indicated that the amount of loss in 2014 due to the new directives of the National Bank of Ethiopia was USD 7,846,395.84. This tells us on average the UN Agencies in Ethiopia will lose 2 % of the amount of USD converted to Ethiopian Birr in each year due to the new directive by the national bank of Ethiopia. Over the BOS2.0 cycle, the total loss will be more than USD 30 Million. If the UN Agencies be able to negotiate with the Government of Ethiopia and save at least 40% of the loss, it will be possible to save USD 3,200,000 per year. Over the BOS2.0 cycle, it will be possible to save USD 16 Million.

As, a result, in order to avoid this loss and obtain the most favorable legally available rate, UNCT/OMT recommended that each UN Agency has signed a host country agreement with the Ethiopian Government which elaborate how the foreign currency should exchange for UN Agencies. The Basic Cooperation Agreement (BCA) that the government has signed with UN agencies clearly indicates that the government is to give the UN the most favorable legally available rate and certainly not the minimum. Due to this, harmonizing foreign exchange dealing is also taken as key priority area for the Finance Working Group in the BOS2.0.

UN Agencies in Ethiopia face challenges in VAT reclaim from the transaction with different suppliers/vendors. This is mainly because suppliers/vendors may not file documents properly. This will create a problem on the timely reimbursement of VAT by UN Agencies. Thus, it brings loss of revenue to the UN Agencies from uncollected VAT from tax authority. To avoid loss of revenue from uncollected VAT, the UNCT/OMT recommended as key priority areas to organize and reclaim VAT together under the Finance Working Group to the Revenue and Custom Authority.

In Ethiopia UNDP, UNICEF and UNFPA are fully implementing HACT framework UN Agencies. HACT framework represents a common operational (harmonized) framework for transferring cash to government and non-government IPs. A common HACT streamlining Agency reduce burden on implementing partners and Agencies. It will help to standardize the way United Nations Agencies work with IPs to reduce transaction cost and implement a common operational framework using the same, consistent standardized approach and tools. Thus, the UNCT/OMT identified the activities of fully implementing HACT frame work on UN agencies that transfer funds to IP as key priority areas for the HACT working group in the BOS2.0.

Micro-assessment of implementing partners should be undertaken to provide an overall assessment of IP’s internal control and financial management capacity. If this activity is done at Agency level, one IP may be assessed by more than one Agency. This will create duplication of efforts, time and money wastage. There are a UNICEF led LTAs with two local audit firms for the HACT micro-assessment of the UN’s implementing partners, i.e. Merit Management Consulting firm and A.W.Thomas Limited Partnership. Currently, there are 24 shared IPs among UN Agencies. For shared IPs, agencies should identify a lead agency for the purposes of managing the micro-assessment. The lead agency should be the one that is responsible for more of the funding being provided to the IP and the one that has sufficient internal capacity. The UNCT/OMT decided to strengthen the activity of conducting joint micro-assessment of shared IPs but through lead agency as key activities for the Working Group in the BOS2.0.

In Ethiopia UN agencies individually contract different audit firms to conduct scheduled audit at high cost. For shared IPs, if this activity is done at Agency level, one IP may be assessed by more than one Agency. This will create duplication of efforts, time and money wastage. This will also create a burden on the IP. Thus, it is suggested that agencies should identify a lead agency for the purpose of joint scheduled audits. The lead agency is responsible for ensuring audits are executed as planned on behalf of all agencies. The results of the audit is shared and discussed with all agencies providing fund to the shared IP. The UNCT/OMT identified conducting joint scheduled audit of shared IPs as key priority areas for the HACT working group in the BOS2.0.

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Capacity development covers identification of capacity gaps in IPs and plan to address them. The objectives of the capacity development are to identify implementing partners’ strengths and weakness in financial management and areas for capacity development. After identifying the weakness of IP’s, UN Agencies will organize different capacity development programme to their IP’s. For shared IP’s these capacity development should be done jointly otherwise, it will create duplication of efforts. The UNCT/OMT identified the development of joint capacity development programme for IPs and UN staffs as key priority areas for the HACT Working Group in the BOS2.0.

The purpose of assurance activities is to determine whether the funds transferred to IPs were used for their intended purpose and in accordance with the work plan. It will help for risk management and mitigation. The coverage, type and frequency of assurance activities is guided by the overall risk rating associated with IP, i.e. IP assessed as high risk are subject to more frequent assurance activities such as in-depth programmatic monitoring and audits. Assurance planning activities should be completed at the beginning of the programme cycle. For shared IPs, the lead agency ensures that other agencies are involved in determining the scope of assurance activities to review the results, corrective actions, capacity development requirements and/or changes to planned assurance activities. The UNCT/OMT identified the establishment of joint assurance plan for shared IPs as key priority areas for the working group in the BOS2.0

In Ethiopia, the UNCT has established and launched an information knowledge management platform on 2016 to facilitate information sharing among UNCT, OMT and its Working Groups. In this IKM, HACT IPs database is created and available for UN Agencies to include their IPs on the database. This provides information on which IP is funded by which UN agencies, risk rating and other important information about IPs. Thus, the UNCT/OMT identified utilizing and regularly updating the HACT database on the IKM as key priority area for the HACT Working Group in the BOS2.0.

UNCT/OMT reviewed the UN ICT business in Ethiopia through the ICT network consolidation (ICT business case) in February 2012. One of the purposes of the Business case is to create common one UN network in Ethiopia. The common network will link all UN Agencies together and facilitating a high speed internet service provider and common backup data center. Creating a common one UN network improve quality of service, bring common/shared infrastructure for UN agencies and have back up for business continuity plan. In this business case, one of the recommendations is to develop “Common data center” that will reduce the cost of data backups which can improve the ICT Business Continuity (BC) and Disaster Response Preparedness (DRP) of UN Ethiopia. WFP was suggested to host the data center due to their DRP off site plans. The UNCT/OMT identified the full implementation of the ICT business case as key priority areas for the BCM &ICT working group in the BOS2.0.

There is no common Business Continuity Plan in Ethiopia but inter Agency BCP policy was approved by UNCT. Only few agencies UN WOMEN, UNDP, UN ECA, UNOAU, WFP and ILO have individual Business Continuity Plan . The UNCT/OMTidentified developing common BCP plan for all UN agencies and establishes BCP location for each participating agency to be used by UN essential staff during any emergency as the key priority areas for the Working Group in the BOS2.0.

The UNCT/OMT has finalized the preparation of IKM platform and launched in March 2016.This IKM will help to improve knowledge and information management at UNCT, OMT and working group level. It also used as a monitoring and evaluation tools to improve the data quality in procurement, used to assess the use of LTAs. Besides, HACT IPs database was developed in the IKM platform. The UNCT/OMT identified utilizing and further developing of IKM as the key priority areas for the working group in the BOS2.0.

Most UN agencies, funds, programmes and specialized agencies working in Ethiopia have a significant field presence, it is important to provide sensitization training for government officials, law enforcement agencies and the UN staff on the UN’s privileges and immunities. The UNCT/OMT identified sensitization training as an inter-agency initiative to ensure quality of support to programme delivery, and to facilitate the implementation of DaO. Besides, harmonize operational policies effectively and provide technical support to prepare supplemental agreements for all the UN agencies, funds, programmes and specialized agencies and help to negotiate and resolve any disputes with host country authorities are identified as key priority areas for the HCA/legal working group in the BOS2.0.

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Table 1.2. Needs AnalysisNeeds Analysis

Common Service Lines

Common services

Needs statement (the ‘what’ and ‘when’) programmatic and non-programmatic needs Key Performance Indicator (KPI) Cost avoided Quality of service

Common procurement

Establish additional common LTAs for goods and services

In the BOS2.0, the Working Group identified 28 categories of goods or services for creation of common LTAs. The aim of establishing these LTAs is to reduce the internal transaction cost and reduce unit price through leveraging the economies of scale.

Estimated cost saving from a target of 7% discount of LTA

Estimated transaction costs avoided from use of Common LTAs.

Organize Joint procurement trainings, workshop or seminars

In order to maximize the benefit obtained from utilizing joint procurement activities, there is a need to provide capacity building training to the UN procurement staff and suppliers/vendors.As a result, in the BOS2.0, the CP Working Group will enhance the capacity of the UN procurement staff and suppliers/vendors by providing different trainings, workshops or seminars

Number of joint procurement training, workshops or seminars conducted.

% customers surveyed who are satisfied with the quality of training, workshops or seminars provided

Develop a regional LTA database

There is no regional LTAs database available to conduct Joint Common Procurement activities at the regional level which will not only benefit for UN Agencies in Ethiopia but also other BOS counties in the African region. Thus, the UNCT determines the needs of establishing Common Procurement &Services Unit (CPSU) in Ethiopia to create a regional LTAs database in the BOS2.0.

Established a regional LTA database

Human Resource

Conduct Joint advertisement and recruitment

There is a need to Establishing a joint advertisement and recruitment panel will help the UNCT/OMT to avoid the duplication of effort, save time and reduce cost. Besides, it will help to share best practices and expertise among the UN Agencies. Hence, The UNCT/OMT decided to establish the joint advertisement and recruitment modality among UN agencies in the BOS2.0.

Estimated transaction costs avoided from joint advertisement and recruitment

Develop Joint learning programme

Joint learning programme among UN Agencies will maximize staff motivation and performance across programmes and operations. Besides, it will save time and reduce cost. The HR WG planned to provide CBI and additional training on an annual basis according to needs identified by the PMT and the OMT develop through joint learning programme in the BOS2.0.

Estimated cost saving from joint learning programme

Establish frame work for recognition and award

The UNCT/OMT decides to establish accountability framework to recognize and award the colleagues of OMT and its WGs who are contributing efficiently in the BOS2.0.

Established Accountability Framework

Establish UN Common Roster of Local Consultant and Support Service Staff

The objective of the roster is to provide UN Agencies with quick access to pre-screened candidates and “tried and tested” consultant profiles. This would shorten recruitment cost,accelerate appointments for short term assignments‐ and provide cost effective and timely HR support resulting in increased programme efficiency.This will also enable all the UN agencies, funds, programmes and specialized agencies to identify candidates from the roster.Thus,the UNCT/OMT decided to include the activities of creating the UN Common Roster of local consultant and support service and update regularly in the BOS2.0.

`Estimated transaction costs avoided from use of Roster of Consultants

Harmonize Local Consultancy rate

In order to avoid variation in consultancy rate, service contract and internship modality among UN agencies, the UNCT/OMT decided to harmonize among UN agencies in the BO2.0.

Harmonized local consultancy rate, service contract and internship modalityHarmonize

Service Contract and Internship Modality

Finance Common Banking Service

UN Agencies are required to conduct regular banking survey. Such surveys help to identify the types of banking services available to UN agencies, the quality of the services, and the fees and rates charged. Based on the survey results, UN Agencies will beable to identify the types and levels of services provided. The UNCT/OMT decided to assign a lead agency which negotiates with banks on behalf of other UN agencies to improve services and get reasonable bank service fee on a competitive basis in the BOS2.0.

Estimated cost saving from banking service fee

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BOS 2016-2020

Harmonization in foreign exchange dealing

Due to the new directives of the National Bank of Ethiopia, UN agencies in Ethiopia will lose more than a USD 7.8 million each year.In order to avoid this loss and obtain the most favorable legally available rate, the UNCT/OMT decided each UN Agency has signed a host country agreement with the Ethiopian Government in the BOS 2.0.

Estimated cost saving from harmonizing foreign exchange dealing

Common VAT reclaim

It is observed that there is loss of revenue from uncollected VAT from tax authority in the UN system. In order to avoid loss of revenue from uncollected VAT, the UNCT/OMT decided to organize and reclaim VAT for all UN agencies together under the finance working group in the BOS2.0.

Conducted a common VAT reclaim of UN agencies

HACT Conduct Joint Micro-assessment

For shared IPs, the UNCT/OMT decided agencies should identify a lead agency for the purposes of managing the joint micro-assessment in the next BoS2.0. The lead agency should be the one that is responsible for more of the funding being provided to the IP and the one that has sufficient internal capacity.

Estimated cost saving from joint micro-assessment

Conduct Joint Scheduled Audits

Currently, there are 24 shared IPs. For these IPs, to reduce burden on them and avoid duplication of efforts, the UNCT/OMT decided to assign a lead agency to conduct the joint schedule audits in the BOS2.0.

Estimated cost saving from joint scheduled audit

Develop Joint Capacity Development Programme

Capacity development covers identification of capacity gaps in IPs. After identifying the weakness of IP’s, UN Agencies will organize different capacity development programme to their IP’s. For shared IPs, the UNCT/OMT decided to develop a joint capacity development programme in the BOS2.0

Estimated cost saving from joint capacity development programme

Develop Common Assurance plan

For HACT framework to provide appropriate level of assurance to UN management, the UNCT/OMT decided to develop comprehensive agency assurance plan for shared IPs which considers timely execution of assurance activities, update to planned assurance activities based on the results of assessment and assurance activities and monitoring of implementation progress in the BOS2.0.

Established a joint assurance plan to shared IPs

BCM & ICT Establish a common IT data center

In order to avoid loss of data and ensure continuity of various activities, the UNCT/OMT decided to develop “Common data center” that will reduce the cost of data backups which can improve the ICT Business Continuity (BC) and Disaster Response Preparedness (DRP) of UN Ethiopia in the BOS2.0.

Developed a one UN (common) IT data center

Finalize and operationalize the joint Business Continuity Management Framework

Only few agencies UN WOMEN, UNDP, UN ECA, UNOAU, WFP and ILO have individual Business Continuity Plan. A common Business Continuity Management framework is not finalized and operationalized in UN premises both in Addis and field offices. However, inter Agency BCP policy was approved by UNCT. Thus, the UNCT/OMT decided to finalize and operationalized the joint Business Continuity Management Framework both at UN premises in Addis and Field Office. Besides to establish BCP location for each participating agency to be used by UN essential staff during any emergency by the Working Group in the BOS2.0.

Finalized and implemented the joint/harmonized BCM framework

Create Common network(One UN network)

The common network will link all UN Agencies together and facilitating a high speed internet service provider and common backup data center. In order to improve quality of service, bring common /shared infrastructure for UN Agencies and have back up for business continuity plan, the UNCT/OMT decided to create a common network (one UN network) in the BOS2.0.

Established a one UN network (common network)

Provide a Common Telephony service

UN Agencies pay a huge amount of money for telephone calls. UNCT/OMT decided to provide the service through a common telephony service through an upgraded infrastructure to reduce telephony costs and associated operational cost for all UN agencies and obtain a better service in the BOS2.0.

Established a common telephony service among UN agencies

Provide a Common Internet service

UN Agencies are using individual ISP (local &VSAT) contract for internet connectivity. This is not cost effective as different agencies are paying for the same service multiple times. Thus, the UNCT/OMT decided to have a shared internet connection for all UN Agencies to reduce internet connectivity cost and improve bandwidth amount in the BOS2.0.

Established a common internet service

2.3. Cost-Benefit Analysis (CBA)

Cost Benefit Analysis (CBA)- analyses new common services identified in the needs analysis, by determining the investment needed in time and financial resources and calculates the projected benefits in terms of avoided cost or enhanced quality of operations. It compares benefits-to-costs in a ratio. This means the total monetary value of benefits (savings) compared to the total monetary value of costs. It helps the OMT decide whether common business operations are cost beneficial, and helps the OMT to prioritize them accordingly by comparing benefit to cost ratio of the proposed service.

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BOS 2016-2020

The CBA compares the cost and quality of a function or service undertaken by a single agency, with the cost and quality of providing a service jointly. The difference between these two is the savings made (benefit) from doing a common service. The CBA analyzes each proposed new common service and identifies the costs and the benefits from both a monetary perspective (direct $ costs or benefits) and from a labor perspective (labor time saved converted into a $ value).

Costs

The Cost Benefit Analysis includes two cost elements – Direct Cost and Indirect Cost

A. Direct costs

Direct costs are all costs that can be traced directly to the delivery of a service or project. Direct costs can be broken down into two types: monetary and labor(which is converted into a $ value). The direct cost can be a onetime and recurring monetary and labor cost. The CBA uses one total number for direct cost. It is the sum of direct monetary and direct Labor cost.

Direct cost-monetary refers to the direct monetary cost of the establishing the service.Direct cost- Labor- refers to the time spent by one or more staff members to develop and implement the common service.

B. Indirect Cost

Indirect costs are defined as costs incurred by the organization regardless of the scope and level of its activities, projects and programmes. They are costs incurred in support of activities, projects and programmes that cannot be traced directly to specific services and projects. Implementing a service jointly or separately usually does not change indirect cost charges as they are static and prescribed. Indirect costs for BOS are set at eight (8) percent as determined by the UNDG for interagency services. Because they are static, indirect cost/benefits are factored into the CBA calculation but do not influence the CBA outcome.

Benefit

Direct Benefit – Monetary: referred to as cost savings, i.e. a reduction in the costs of a process. This may be savings resulting from a reduction in prices (in the case of procurement).

Direct Benefit - Labor (Time Reductions/Gains)-refers to a reduction in cycle time, e.g. the time required to execute a process. This is due to the elimination of duplicative activities that are otherwise executed by each agency individually freeing up staff time for other purposes. The time reduction is converted into a dollar value.

The CBA uses one total number for direct benefit. It is the sum of direct monetary and direct labor benefit.

2.3.1. Common procurement

Activity Based Costing (ABC) of procurement process

Activity Based Costing is used to quantify a standard procurement process in a situation without LTA compared to a situation with LTA. The estimation was based on the amount of time requested and the individual staff that are involved in the standard procurement process. Activity Based Costing (ABC) of procurement process in a situation with LTA and without LTA is quantified as follows:

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BOS 2016-2020

Table 1.4. Standard process with and without LTA

STANDARD PROCESS WITHOUT LTA STANDARD PROCESS WITH LTA

Process Step Staff Grade Level

Time Required(in hrs)

Pro-Forma Cost(per hour) in USD Total (USD) Process Step

Staff Grade Level

Time Required(in hrs)

Pro-Forma Cost(per hour)

Total (USD)

Prepare specifications/requisition

G5 1 11.5611.56 Prepare

specifications/requisitionG5 1 11.56

11.56

Review & approve specifications/requisition

NOC 0.5 18.349.17 Review & approve

specifications/requisitionNOC 0.5 18.34

9.17

Prepare RFQ/RFP/ITB G7 2.5 15.42 38.56 Prepare RFQ/RFP/ITB G7 2 15.42 30.85

Prepare RFQ/RFP/ITB NOB 1.25 15.81 19.76 Prepare RFQ/RFP/ITB NOB 0 15.81 0.00Prepare RFQ/RFP/ITB P4 0.5 116.10 58.05 Prepare RFQ/RFP/ITB P4 0 116.10 0.00Publish Advertisement G6 0.5 13.41 6.70 Publish Advertisement G6 0.125 13.41 1.68

Receive and sort proposal G4 2.5 9.25 $23.12 Receive and sort proposal G4 1 9.25 9.25

Open & Sign proposals G6 1 13.41 $13.41 Open & Sign proposals G6 1 13.41 13.41

Open & Sign proposals NOC 1 18.34 $18.34 Open & Sign proposals NOC 0 18.34 0.00

Open & Sign proposals G5 1 11.56 $11.56 Open & Sign proposals G5 0 11.56 0.00

Open & Sign proposals G6 1 13.41 $13.41 Open & Sign proposals G6 0 13.41 0.00Technical & Financial evaluation

G7 3 15.42 $46.27 Technical & Financial evaluation

G7 0 15.42 0.00Technical & Financial evaluation

NOB 3 15.81 $47.43 Technical & Financial evaluation

NOB 0 15.81 0.00Technical & Financial evaluation

NOC 3 18.34 $55.02 Technical & Financial evaluation

NOC 0 18.34 0.00Technical & Financial evaluation





NOC 3 18.34 $55.02 Technical & Financial evaluation

NOC 0 18.34 0.00Technical & Financial evaluation


G7 0 15.42 0.00Ref check NOB 3.25 15.81 $51.38 Ref check NOB 0 15.81 0.00Site visits G7 2 15.42 $30.85 Site visits G7 0 15.42 0.00Site visits NOB 2 15.81 $31.62 Site visits NOB 0 15.81 0.00Review by Contract committee (CAP)

NOB 2 15.81 $31.62 Review by Contract committee (CAP)

NOB 0 15.81 0.00Review by Contract committee P4 2 116.10 $232.19 Review by Contract committee P4 0 116.10 0.00Review by Contract committee NOC 2 18.34 $36.68 Review by Contract committee NOC 0 18.34 0.00Review by Contract committee NOC 2 18.34 $36.68 Review by Contract committee NOC 0 18.34 0.00Review by Contract committee NOB 2 15.81 $31.62 Review by Contract committee NOB 0 15.81 0.00Endorsement by OM or Head Agcy.

D1/P6 0.5 153.81 $76.90 Endorsement by OM or Head Agcy.

D1/P6 0.5 153.81 76.90

Create PO G6 0.5 13.41 $6.70 Create PO G6 0.5 13.41 6.70Award contract/Prepare PO G6 0.5 13.41 $6.70 Award contract/Prepare

POG6 0.5 13.41 6.70

Delivery confirmation G6 0.5 13.41 $6.70 Delivery confirmation G6 0.5 13.41 6.70SUBTOTAL STAFF TIME/COST PER BOS1.0 $1,139.79 SUBTOTAL STAFF TIME/COST PER

BOS1.0172.93

ADJUSTMENT FACTOR FOR PROFORMA COST INCREASE FROM BOS 1 TO BOS 2.0

2% $25.30 ADJUSTMENT FACTOR FOR PROFORMA COST INCREASE FROM BOS 1 TO BOS 2.0

2% 3.84

ADJUSTED SUBTOTAL STAFF TIME/COST $1,165.09 ADJUSTED SUBTOTAL STAFF TIME/COST

176.76

GOE (30% OF TOTAL COST) $349.53 GOE (30% OF TOTAL COST) 53.03

Total 53 $1515 Total 7.6 230

STANDARD UNIT TRANSACTION COST WITHOUT LTA(A) 1,515 TIME REQUIRED IN A PROCESS WITHOUT LTA (in hours) 53.0

STANDARD UNIT TRANSACTION COST WITH LTA(B) 230 TIME REQUIRED IN A PROCESS WITH LTA (in hours) 7.6

SAVINGS ON TRANSACTION COST IF LTA IS IMPLEMENTED(A-B) 1,285 SAVINGS ON TIME (in hours) 45.4PERCENTAGE SAVING ON TRANSACTION COST 84.83% PERCENTAGE SAVING ON TIME 85.61%

From the above table, the standard procurement process without LTAs will take 53 hours with costing USD 1,515 but the same process with LTA will take only 7.6 hours with costing USD 230. This shows that there is a significant saving in staff time, i.e. 45.4 hours (reduction in labor cost) and reduction in transaction cost of USD 1,285 as a result of using common LTA in procurement process. Now we will see the different costs and benefits associated with using of common LTA. NB: In order to reflect all cost involved in running a specific process, we used the same approach like for the Universal Price List by adding a 30% GOE.

Direct cost-Monetary cost

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BOS 2016-2020

The direct monetary cost to develop a common LTA is a cost associated with a onetime investment cost, e.g. for advertisement cost. To create an LTA the advertisement cost is USD 1,500. During the BOS2.0 cycle to develop 28 additional LTAs, the total advertisement cost incurred by the working group to create 28 common LTAs will be USD 42,000.Table 1.5. ONE-TIME MONETARY COST (Advertisement Cost)

COMMON SERVICES ITEM YEAR1 (2016) YEAR2 (2017) YEAR3 (2018) YEAR4 (2019) YEAR5(2020) TOTAL (USD)


Advertisement Cost 1,500.00 1,500.00

Spare parts including Tires Advertisement Cost 1,500.00 1,500.00

Stationery including Printing Paper Advertisement Cost 1,500.00 1,500.00

Uniform / clothing Advertisement Cost 1,500.00 1,500.00

Electrical equipment Advertisement Cost 1,500.00 1,500.00

Office Equipment including Furniture Advertisement Cost 1,500.00 1,500.00

Catering service Advertisement Cost 1500 1,500.00

Hotel and Conference Facilities Advertisement Cost 1,500.00 1,500.00

Communication and production (video) Advertisement Cost 1,500.00 1,500.00

Translations/ Interpretation Advertisement Cost 1,500.00 1,500.00

Custom Clearance (Company) Advertisement Cost 1,500.00 1,500.00

Advertising Services Advertisement Cost 1,500.00 1,500.00

Generator & Electro Mechanical Services


Maintenance (IT Equipment/ photocopier)

1,500.00 1,500.00

Vehicle Maintenance Advertisement Cost 1,500.00 1,500.00

Insurance Advertisement Cost 1,500.00 1,500.00

Postal and Currier Services including Cargo


Cleaning services (Company) Advertisement Cost 1,500.00 1,500.00

Temporary Driving Services (Company) Advertisement Cost 1,500.00 1,500.00

Messenger Services (Company) Advertisement Cost 1,500.00 1,500.00

Security Guard Services Advertisement Cost 1,500.00 1,500.00

Transportation Rental Trucks Advertisement Cost 1,500.00 1,500.00

Transportation Rental Bus Advertisement Cost 1,500.00 1,500.00

Transportation Rental Car Advertisement Cost 1,500.00 1,500.00

Printing Services Advertisement Cost 1,500.00 1,500.00

Warehouse/ Storage Rental Advertisement Cost 1,500.00 1,500.00

Event Management Advertisement Cost 1,500.00 1,500.00

Technical Consultancies and Training Services(includes: surveys, Micro-assessment, M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )


GOE (30%)12,600.00

TOTAL ONE TIME COST 54,600.00The advertising cost to create an LTA is USD 1,500 which is a onetime monetary cost. Since the UNCT/OMT will create 28 additional LTAs during the BOS period 2016-2020, the total advertising cost (one time monetary cost) will be USD 54,600.

Direct Cost- Labor /non-monetary cost: Using Activity Based Costing method, the table below shows the non-monetary cost associated with the development and renewal of LTA

Table 1.6. ONE-TIME LABOR COST (LTA development cost)

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BOS 2016-2020

Process step Grade level of staff involved Time required (in hrs) Staff Pro Forma Cost Total (USD) Draft ToR's NOC 3 18.34 55.02Draft ToR's P3 2 97.53 195.05Draft ToR's P2 2 86.35 172.71Draft ToR's G6 1 13.41 13.41Draft ToR's G6 1 13.41 13.41Draft ToR's G6 1 13.41 13.41Draft ToR's G7 1 15.42 15.42Draft ToR's G7 1 15.42 15.42Review & Finalize ToR's P4 1 116.10 116.10Prepare Solicitation doc P3 1 97.53 97.53Prepare Solicitation doc G7 1 15.42 15.42Publish Advertisement G7 1 15.42 15.42Receive and sort proposal G4 2 9.25 18.49Open & Sign proposals NOC 2 18.34 36.68Open & Sign proposals P3 2 97.53 195.05Open & Sign proposals P2 2 86.35 172.71Open & Sign proposals G6 2 13.41 26.82Open & Sign proposals G6 2 13.41 26.82Open & Sign proposals G6 2 13.41 26.82Open & Sign proposals G7 2 15.42 30.85Open & Sign proposals G7 2 15.42 30.85Technical evaluation NOC 2 18.34 36.68Technical evaluation P3 2 97.53 195.05Technical evaluation P2 2 86.35 172.71Technical evaluation G6 2 13.41 26.82Technical evaluation G6 2 13.41 26.82Technical evaluation G6 2 13.41 26.82Technical evaluation G7 2 15.42 30.85Technical evaluation G7 2 15.42 30.85Financial evaluation NOC 2 18.34 36.68Financial evaluation P3 2 97.53 195.05Financial evaluation P2 2 86.35 172.71Financial evaluation G6 2 13.41 26.82Financial evaluation G6 2 13.41 26.82Financial evaluation G6 2 13.41 26.82Financial evaluation G7 2 15.42 30.85Financial evaluation G7 2 15.42 30.85Ref check NOC 2 18.34 36.68Site visits G7 2 15.42 30.85Site visits NOC 2 18.34 36.68Review by Contract committee (CAP) NOC 2 18.34 36.68Review by Contract committee (CAP) P4 2 116.10 232.19Review by Contract committee (CAP) NOD 2 21.28 42.55Review by Contract committee (CAP) NOC 2 18.34 36.68Review by Contract committee (CAP) NOC 0.5 18.34 9.17Endorsement by HoA. D1/P6 0.5 153.81 76.90Create PO G7 0.5 15.42 7.71Award contract/Prepare PO G7 0.5 15.42 7.71LTA Signature G7 0.5 15.42 7.71Sub total 82.5 2,958.08GOE (30%) 887.42Total 3,845.50

The above table indicates that it will take 82.5 hrs with a cost of USD 3,845.50 to develop an LTA. The total cost to develop 28 additional common LTAs within the BOS2.0 period 2016-2020 will be USD 107,674.

Table 1.7. RECURRING LABOR COST (LTA renewal cost)

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BOS 2016-2020

Process Step Grade Level of staff involved Time Required (in hrs) Staff Pro-Forma Cost (USD) Total (USD)

LTA End of Period evaluation NOC 2 18.34 36.68

LTA End of Period evaluation P3 2 97.53 195.05

LTA End of Period evaluation P2 2 86.35 172.71

LTA End of Period evaluation G6 2 13.41 26.82





Site visits G7 1 15.42 15.42

Site visits NOC 1 18.34 18.34

LTA Renewal process NOB 1 15.81 15.81

LTA Renewal process G7 1 15.42 15.42

LTA Renewal process P3 1 97.53 97.53

Endorsement by Head of Agency D1/P6 1 153.81 153.81

Sub-total 20 832.07

GOE(30%) 249.62

Total 1,081.69

The above table indicates that to renew an LTA it will take 20 hrs with a cost of USD 1,081.69.

Table 1.8. Total LTA development and renewal cost for 28 LTAs during the BOS2.0period 2016-2020NAME OF COMMON SERVICES ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL (USD)

IT Equipment including Computers, Printer LTA Development Cost- Staff Time 3,845.50

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BOS 2016-2020

and Toners and Technical Support LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69 8,172.26

Spare Part including TyreLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Stationery including Printing PaperLTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Uniform / clothingLTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Electrical equipmentLTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Office Equipment including FurnitureLTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

CateringLTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Hotel and Conference FacilitiesLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Communication and production (video)LTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Translations/ InterpretationLTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Custom Clearance (Company)LTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Advertising ServicesLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Generator & Electro Mechanical ServicesLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Maintenance (IT Equipment/ photocopier) LTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Vehicle Maintenance LTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

InsuranceLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Postal and Currier Services including CargoLTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Cleaning services (Company)LTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Temporary Driving Services (Company)LTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Messenger Services (Company)LTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Security Guard ServicesLTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Transportation Rental TrucksLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Transportation Rental Bus LTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Transportation Rental CarLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69Printing Service

LTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Warehouse/ Storage RentalLTA Development Cost- Staff Time 3,845.50 LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Event managementLTA Development Cost- Staff Time 3,845.50

8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69Technical Consultancies and Training Services(includes: surveys, Micro assessment,M&E,design of

LTA Development Cost- Staff Time 3,845.50 8,172.26LTA Renewal Cost 1,081.69 1,081.69 1,081.69 1,081.69

Sub-total 219,088.1GOE (30%) 65,726.43

Total cost 284,814.53

The above table indicates that the total cost needed to develop and renew common LTAs during the BOS2.0 cycle will be USD 284,814.5

Coordination cost

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BOS 2016-2020

Coordination cost is the cost of establishing and running common operating services like the time spent on meetings, facilitation and e-mail by OMT members and Working Group members, time invested in coordination of BoS related activities by RCO and other a one off investment in BoS. Hence, in the Cost Benefit Analysis, the coordination cost for the procurement working group will be included. Similarly, the coordination cost for other working groups will be computed and included in their respective CBA. The coordination cost associated with the common procurement working group is given below.

A. Coordination cost of CP Working Group members

Assume the working group members will attend 10 meeting in a year and will spend 2 hours per meeting, whereas the Chair and Co-chair will spend additional 10 hours in a year for coordinating the working group.

Table 1.9. Coordination cost of CP working group members in a year

Working Group Staff Grade Level Time spent (in hrs) Pro-Forma cost (per hour) (USD)

Total (USD)

Chair P3 30 97.53 2,925.76Co-Chair NOC 30 18.34 550.19Member P3 20 97.53 1,950.50Member G7 20 15.42 308.46Member P2 20 86.35 1,727.07Member G6 20 13.41 268.18Member P3 20 97.53 1,950.5Member G4 20 9.25 184.92Member G6 20 13.41 268.18Member P3 20 97.53 1,950.5Member P3 20 97.53 1,950.5Member G6 20 13.41 268.18Member P4 20 116.10 2,321.92Member NOC 20 8.34 366.80Sub total 16,991.68GOE(30% of total cost) 5,097.50Total CPWG BOS Coordination Cost 300 22,089.18

The above table indicates that the working group members will spend 300 hours per year and the associated labor cost is USD 22,086.18 to coordinate the working group.

B. Coordination cost of OMT for Coordination of the working groups

Assume the OMT members will attend 10 meeting in a year and will spend 2.5 hours per meeting, whereas the Chair and Co-chair will spend additional 15 hours per year for coordinating the OMT.

Table 1.10. Coordination cost of the OMT Members in Managing Common Procurement Working Group

36


BOS 2016-2020

Working Group Grade Level Time Spent (in hrs) Pro-Forma cost (per hour) (USD) Total (USD)

OMT Member P4 25 116.10 2,902.40OMT Member P4 25 116.10 2,902.40

OMT Member P3 25 97.53 2,438.13

OMT Member P5 25 133.91 3,347.76

OMT Member G6 25 13.41 335.23OMT Co Chair P5 40 133.91 5,356.42

OMT Member P4 25 116.10 2,902.40

OMT Member P4 25 116.10 2,902.40

OMT Member P3 25 97.53 2,438.13

OMT Member P4 25 116.10 2,902.40

OMT Member P5 25 133.91 3,347.76

OMT Co-Chair P4 40 116.10 4,643.84

OMT Member NOB 25 15.81 395.24

OMT Member G6 25 13.41 335.23

OMT Members P3 25 97.53 2,438.13

OMT Co-Chair P3 40 97.53 3,901.01

OMT Member P5 25 133.91 3,347.76

OMT Member P3 25 97.53 2,438.13

OMT Member P5 25 133.91 3,347.76

Sub total 520 52,622.53GOE(30% of total cost) 15,786.76Total OMT Coordination Cost for All WG 68,409.29Number of Working Groups 6Cost Per Work Group 11,401.55

The above table indicates that the OMT members will spend 520 hours per year and associated labor cost of USD 52,622.53 to coordinate all six working groups. Thus, the coordination cost per working group will be USD 11,401.55

As a summary, the table below shows the total coordination cost to the CP working groups from RCO, OMT members and CP working group members.

Table 1.11. Total coordination cost to CP WG

TYPEITEM GRADE

# of OMT Working Groups

STAFF COST (USD)

COST APPORTIONMENT

(USD)

Common Service coordination cost Dedicated Staff for Common Service Coordination P1 7* 77,139.16 11,019.88

OMT Coordination cost For Procurement WG

Staff time dedicated to meetings and coordination 11,401.55

CPWG meetings and coordination cost Staff time dedicated to meetings and coordination 22,089.18

Total coordination cost to CP working group 33,490.73* includes six working groups and OMT

The above table shows that the total coordination cost to the Common Procurement Working Group from RCO, OMT members and the working group members will be USD 33,490.73

Benefit-Monetary Benefit

37


BOS 2016-2020

The monetary saving of the procurement pillar is the reduction in the unit price due to the bargaining power of the UN because of the bulk purchase, i.e. reduction in financial resources associated with all LTAs that will be developed over the BoS2.0 cycle 2016-2020. The target to geta 7% discount in price due to the bargaining power for all the common LTAs developed in the period. As, a result, there will be a cost saving of USD 10,272,176over the BOS2.0 period 2016-2020 if the UN Agencies procured together.

Table 1.12. Monetary benefit due to 7% reductionS. No. Procurement Category

Total value in (USD) Year 2 (2017) Year 3 (2018) Year 4 (2019) Year 5 (2020) Total (USD)

1IT Equipment including Computers, Printer and Toners and Technical Support

4,342,490 303,974 303,974 303,974 303,974 1,215,897

2 Spare Parts including tyres 247,177 17,302 17,302 17,302 17,302 69,210

3 Stationery including Printing Paper 2,551,658 178,616 178,616 178,616 178,616 714,464

4 Uniform / clothing 484,149 33,890 33,890 33,890 101,671

5 Electrical equipment 2,946,731 206,271 206,271 206,271 618,814

6 Office Equipment including Furniture 1,858,324 130,083 130,083 130,083 130,083 520,331

7 Catering 715,992 50,119 50,119 50,119 50,119 200,478

8 Hotel and Conference Facilities 2,182,936 152,806 152,806 152,806 152,806 611,222

9 Communication and production (video) 1,001,486 70,104 70,104 70,104 210,312

10 Translations/ Interpretation 154,545 10,818 10,818 10,818 10,818 43,272

11 Custom Clearance (Company) 429,779 30,085 30,085 30,085 30,085 120,338

12 Advertising Services 364,191 25,493 25,493 25,493 25,493 101,973

13 Generator & Electro Mechanical Services 2,127,321 148,912 148,912 148,912 148,912 595,650

14 Maintenance (IT Equipment/ photocopier) 155,279 10,870 10,870 10,870 32,609

15 Vehicle Maintenance 852,143 59,650 59,650 59,650 178,950

16 Insurance 1,337,170 93,602 93,602 93,602 93,602 374,408

17 Postal and Currier Services including Cargo 27,702 1,939 1,939 1,939 5,817

18 Cleaning services (Company) 932,853 65,300 65,300 65,300 195,899

19 Temporary Driving Services (Company) 268,173 18,772 18,772 18,772 18,772 75,088

20 Messenger Services (Company) 277,828 19,448 19,448 19,448 19,448 77,792

21 Security Guard Services 1,438,364 100,685 100,685 100,685 302,056

22 Transportation Rental Trucks 1,296,767 90,774 90,774 90,774 90,774 363,09523 Transportation Rental Bus 201,245 14,087 14,087 14,087 14,087 56,349

24 Transportation Rental Car 3,407,025 238,492 238,492 238,492 238,492 953,967

25 Printing Services 1,100,642 77,045 77,045 77,045 77,045 308,180

26 Warehouse/ Storage Rental 703,118 49,218 49,218 49,218 147,655

27 Event Management 79,867 5,591 5,591 5,591 5,591 22,363

28

Technical Consultancies and Training Services(includes: surveys, Micro assessment,M&E,design of towns,inventorycounting,technical assistance towards HR and Finance,inspection services )

7,336,844 513,579 513,579 513,579 513,579 2,054,316

Total 38,821,799 2,119,598 2,717,526 2,717,526 2,717,526 10,272,176

The table below shows the benefits of creating common LTA, i.e. saving on staff time and labor cost

Table 1.13. LTA benefit-LTA SAVINGS ON STAFF TIME AND LABOR COST

38


BOS 2016-2020

PROCESS # of Agencies # of LTAs Cost per LTA (USD) PERIODICITY TOTAL (USD)

Separate LTAs developed by each Agencies for their individual use

29 28 3,845.50 1 3,122,546

Separate LTAs renewed by the Agencies for their individual use (4 times over the UNDAF period)

29 28 1,081.69 4 3,513,329

TOTAL COST OF SEPARATE LTAs DEVELOPED & RENEWED BY THE INDIVIDUAL AGENCIES (A) 6,635,875

Common LTA(s) developed by Lead Agency 29 0.97 3,845.50 1 108,173.92

Common LTA(S) renewed by Lead Agency (4 times over the UNDAF period)

29 0.97 1,081.69 4 121,711.76

TOTAL COST OF COMMON LTA(s) DEVELOPED & RENEWED BY ONE LEAD AGENCY ON BEHALF OF OTHERS (B) 229,885.68

TOTAL SAVING ON TRANSACTION COST ( A-B) 6,405,989.45

TOTAL STAFF TIME SAVING BY COMMON SERVICES converted into USD 28 228,785.34

TOTAL STAFF TIME SAVING BY YEAR converted into USD 4 57,196.33

The above table indicates that there will be a saving of labor cost of USD 57,196 due to the creation of common LTAs by lead Agency as compared to creation by individual Agency for their own consumption

Table 1.14. Labor Cost Saving –Recurring benefit

Labor Cost Saving (USD)

39


BOS 2016-2020

Common Service Item Year 1 (2017) Year 2 (2018) Year 3(2019) Year 4 (2020) Total (USD)IT Equipment including Computers, Printer and Toners and Technical Support Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33

228,785.32

Spare Parts including tyres Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Stationery including Printing Paper Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Uniform / clothing Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Electrical equipment Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Office Equipment including Furniture Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Catering Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Hotel and Conference Facilities Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Communication and production (video) Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Translations/ Interpretation Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Custom Clearance (Company) Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Advertising Services Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Generator & Electro Mechanical Services Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Maintenance (IT Equipment/ photocopier) Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Vehicle Maintenance Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Insurance Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Postal and Currier Services including Cargo Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Cleaning services (Company) Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Temporary Driving Services (Company) Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Messenger Services (Company) Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Security Guard Services Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Transportation Rental Trucks Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Transportation Rental Bus Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Transportation Rental Car Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Printing Services Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Warehouse/ Storage Rental Staff time saved 57,196.33 57,196.33 57,196.33 171,588.99

Event Staff time saved 57,196.33 57,196.33 57,196.33 57,196.33 228,785.32

Technical Consultancies and Training Services(includes: surveys,Microassessment,M&E,design of towns,inventorycounting,technical assistance towards HR and Finance,inspection services ) Staff time saved

57,196.33 57,196.33 57,196.33 57,196.33

228,785.32

Total Recurring Benefit 1,086,730.27 1,601,497.24 1,601,497.24 1,601,497.24 5,891,221.99

The above table indicates that the total amount of labor cost saving due to the creation of the LTAs by a lead Agency is USD 5,891,221

Table 1.15. Total cost and projected annual saving of procurement

TYPE COMMON SERVICES ALL AGENCIES DATA CONSOLIDATED Total cost SAVINGS ON TRANSACTION Targeted

40


BOS 2016-2020

COST

% reduction

on Service

cost

BASELINE COST Projected

Annual Savings

on Service cost

( Ceteris paribus)

Total amount (USD) invoiced by the Supplier in 2014

# of Transactions(# of processes)

Unit Transaction cost

Total transaction cost(Staff time) (USD)

Unit saving

Total saving (on transaction

cost )

NEW

CO

MM

ON

SER

VICE

S


4,342,490 275 1,515 416,625.00 4,759,114.60 1,285 353,375.00 7% 303,974

Spare parts including tires 247,177 31 1,515 46,965.00 294,142.00 1,285 39,835.00 7% 17,302

Stationery including Printing Paper

2,551,658 223 1,515 337,760.47 2,889,418.31 1,285 286,516.49 7% 178,616

Uniform / clothing 484,149 52 1,515 78,760.29 562,909.36 1,285 66,811.02 7% 33,890

Electrical equipment 2,946,731 74 1,515 112,081.95 3,058,812.59 1,285 95,077.22 7% 206,271

Office Equipment including Furniture

1,858,324 189 1,515 286,263.36 2,144,586.98 1,285 242,832.36 7% 130,083

Catering Service 715,992 14 1,515 21,204.69 737,196.52 1,285 17,987.58 7% 50,119 Hotel and Conference Facilities

2,182,936 183 1,515 277,175.63 2,460,111.54 1,285 235,123.40 7% 152,806

Communication and production (video)

1,001,486 76 1,515 115,111.19 1,116,596.73 1,285 97,646.87 7% 70,104

Translations/ Interpretation 154,545 51 1,515 77,245.67 231,790.66 1,285 65,526.19 7% 10,818 Custom Clearance (Company) 429,779 45 1,515 68,157.94 497,936.91 1,285 57,817.23 7% 30,085

Advertising Services 364,191 73 1,515 110,567.33 474,758.07 1,285 93,792.39 7% 25,493 Generator & Electro Mechanical Services

2,127,321 43 1,515 65,128.70 2,192,449.38 1,285 55,247.57 7% 148,912

Maintenance (IT Equipment/ photocopier)

155,279 24 1,515 36,350.90 191,629.82 1,,285 30,835.86 7% 10,870

Vehicle Maintenance 852,143 158 1,515 239,310.11 1,091,452.76 1,285 203,002.71 7% 59,650

Insurance 1,337,170 41 1,515 62,099.46 1,399,269.59 1,285 52,677.92 7% 93,602 Postal and Currier Services including Cargo

27,702 39 1,515 59,070.22 86,771.83 1,285 50,108.26 7% 1,939

Cleaning services (Company) 932,853 95 1,515 143,888.99 1,076,741.78 1,285 122,058.59 7% 65,300 Temporary Driving Services (Company)

268,173 16 1,515 24,233.94 292,406.94 1,285 20,557.24 7% 18,772

Messenger Services (Company)

277,828 66 1,515 99,964.98 377,792.65 1,285 84,798.60 7% 19,448

Security Guard Services 1,438,364 81 1,515 122,684.30 1,561,048.34 1,285 104,071.01 7% 100,685 Transportation Rental Trucks 1,296,767 13 1,515 19,690.07 1,316,457.28 1,285 16,702.75 7% 90,774

Transportation Rental Bus 201,245 16 1,515 24,233.94 225,478.75 1,285 20,557.24 7% 14,087

Transportation Rental Car 3,407,025 96 1,515 145,403.61 3,552,428.41 1,285 123,343.42 7% 238,492

Printing Services 1,100,642 114 1,515 172,666.79 1,273,309.14 1,285 146,470.31 7% 77,045

Warehouse/ Storage Rental 703,118 38 1,515 57,555.60 760,674.02 1,285 48,823.44 7% 49,218

Event management 79,867 7 1,515 10,602.35 90,469.20 1,285 8,993.79 7% 5,591 Technical Consultancies and Training Services(includes: surveys,Microassessment,M&

7,336,844 111 1,515 168,122.92 7,504,966.90 1,285 142,615.83 7% 513,579

Total 38,821,799 2,244 3,398,925 42,220,721 , 2,883,205 2,717,525

Assuming a 7% reduction in the LTA, the UNCT/OMT can save USD 2,717,525 annually

1.7. Cost Benefit Analysis (CBA) for Common procurement

Table 1.16. Cost Benefit Analysis (CBA) for Common Procurement

41


BOS 2016-2020

Proposed Business Solution/incl. Common Service

Monetary Cost Benefits (USD)

Labor Cost Benefits (Labor) (USD)

Other Costs /Benefits Prioritization

A B C D E F G H IAnticipated Monetary Cost (One time & Recurring investment)

Anticipated Monetary benefits (One time & Recurring Benefits)

Anticipated Labor Cost- Time investment (One time & Recurring Labor Cost)

Anticipated Labor Benefits-Time Reduction (One time & Recurring Labor Benefits

Anticipated Significant Other Costs

Anticipated Significant Other Benefits

Total Cost (A+C) (USD)

Total Benefit (B+D) (USD)

Priority ratio:Benefit/CostH/G

Ranking per OMT

Adjusted

Ranking BY UNC

T

IT equipment including computers, printer, and toners and technical support 1,500 1,215,897 8,172.26 228,785.32 9,672.26 1,444,682.32 149.36 2 Spare parts including tire 1,500 69,210 8,172.26 228,785.32 9,672.26 297,995.32 30.81 23 Stationary including printing paper 1,500 714,464 8,172.26 228,785.32 9,672.26 943,249.32 97.52 4 Uniform/Clothing 1,500 101,671 7,090.57 171,588.99 8,590.57 273,259.99 31.81 20 Electrical equipments 1,500 618,814 7,090.57 171,588.99 8,590.57 790,402.99 92.01 5 Office equipments including furniture 1,500 520,331 8,172.26 228,785.32 9,672.26 749,116.32 77.45 8 Catering 1,500 200,478 8,172.26 228,785.32 9,672.26 429,263.32 44.38 14 Hotel and Conference Facilities 1,500 611,222 8,172.26 228,785.32 9,672.26 840,007.32 86.85 6 Communication and production (Video) 1,500 210,312 7,090.57 171,588.99 8,590.57 381,900.99 44.46 13 Translations/Interpretation 1,500 43,272 8,172.26 228,785.32 9,672.26 272,057.32 28.13 25 Custom Clearance (Company) 1,500 120,338 8,172.26 228,785.32 9,672.26 349,123.32 36.10 18 Advertising Service 1,500 101,973 8,172.26 228,785.32 9,672.26 330,758.32 34.20 19 Generator and Electro-Mechanical Service 1,500 595,650 8,172.26 228,785.32 9,672.26 824,435.32 85.24 7 Maintenance( IT equipment/Photocopier) 1,500 32,609 7,090.57 171,588.99 8,590.57 204,197.99 23.77 27 Vehicle Maintenance 1,500 178,950 7,090.57 171,588.99 8,590.57 350,538.99 40.81 16 Insurance 1,500 374,408 8,172.26 228,785.32 9,672.26 603,193.32 62.36 9 Postal and Courier Service including Cargo 1,500 5,817 7,090.57 171,588.99 8,590.57 177,405.99 20.65 28 Cleaning Service (Company) 1,500 195,899 7,090.57 171,588.99 8,590.57 367,487.99 42.78 15 Temporary Driving Service (Company) 1,500 75,088 8,172.26 228,785.32 9,672.26 303,873.32 31.42 22 Messenger Services (Company) 1,500 77,792 8,172.26 228,785.32 9,672.26 306,577.32 31.70 21 Security Guard Service 1,500 302,056 7,090.57 171,588.99 8,590.57 473,644.99 55.14 12 Transportation Rental Truck 1,500 363,095 8,172.26 228,785.32 9,672.26 591,880.32 61.19 10 Transportation Rental Bus 1,500 56,349 8,172.26 228,785.32 9,672.26 285,134.32 29.48 24 Transportation Rental Car 1,500 953,967 8,172.26 228,785.32 9,672.26 1,182,752.32 122.28 3 Printing Services 1,500 308,180 8,172.26 228,785.32 9,672.26 536,965.32 55.52 11 Ware house/Storage rental 1,500 147,655 7,090.57 171,588.99 8,590.57 319,243.99 37.16 17 Event Management 1,500 22,363 8,172.26 228,785.32 9,672.26 251,148.32 25.97 26 Technical Consultancies and Training Services (includes Survey, Micro-Assessment) 1,500 2,054,316 8,172.26 228,785.32 9,672.26 2,283,101.32 236.05 1

Total 42,000 10,272,176 219,088 5,891,222 261,088 16,163,398 GOE (30%) 12,600 65,726.4

Total 54,600 10,272,176 284,814.5 5,891,222 261,088 16,163,398The above table shows that the Common Procurement Working Group is expected to generate a total savings of USD 16,163,398 (material cost of USD 10,272,176 and labor cost of USD 5,891,222) during BOS2.0.

2.3.2. Human Resource

42


BOS 2016-2020

Activity Based Costing for RecruitmentTo establish the baseline cost, we applied activity based costing method for standard recruitment process at agency level (without joint recruitment) and joint recruitment process. This comparison is given in the following table as follows:Table 2.1. Standard recruitment process

Standard recruitment process without joint recruitment Standard recruitment with joint recruitment

Steps in recruitment process Grade level of staff involved

Time spent (in hours)

Pro forma cost (USD)

Total cost (USD)


Time spent (in hours


Total cost (USD)

Prepare request for recruitmentNOC 0.5 18.34 9.17

Prepare request for recruitment NOC 0.5 18.34 9.17

Preparation of TOR NOC 2 18.34 36.68 Preparation of TOR NOC 0 18.34 0.00Review of TOR NOB 0.5 15.81 7.91 Review of TOR NOB 0.5 15.81 7.91Approval of TOR P3 0.5 97.53 48.77 Approval of TOR P3 0.5 97.53 48.77Vacancy announcement preparation NOB 0.5 15.81 7.91

Vacancy announcement preparation NOB 0 15.81 0.00

Publication NOB 1 15.81 15.81 Publication NOB 0 15.81 0.00Online Publication G6 1 13.41 13.41 Online Publication G6 0 13.41 0.00Long list G7 12 15.42 185.04 Long list G7 0 15.42 0.00Short list NOC 4 18.34 73.36 Short list NOC 0 18.34 0.00Short list NOB 2 15.81 31.62 Short list NOB 0 15.81 0.00

Written test preparation NOC 4 18.34 73.36 Written test preparation NOC 0 18.34 0.00Written test Administration G5 2 11.56 23.12 Written test Administration G5 0 11.56 0.00Written test Administration G7 3 15.42 46.26 Written test Administration G7 0 15.42 0.00Written test marking NOC 2 18.34 36.68 Written test marking NOC 0 18.34 0.00Written test marking NOC 2 18.34 36.68 Written test marking NOC 0 18.34 0.00Written test marking NOB 2 15.81 31.62 Written test marking NOB 0 15.81 0.00Interview question preparation NOB 2 15.81 31.62 Interview question preparation NOB 0 15.81 0.00Interview question preparation G6 2 13.41 26.82 Interview question preparation G6 0 13.41 0.00Interview panel NOC 5 18.34 91.70 Interview panel NOC 0 18.34 0.00Interview panel NOD 5 21.28 106.40 Interview panel NOD 0 18.34 0.00Interview panel NOB 5 15.81 79.05 Interview panel NOB 0 15.81 0.00Interview panel G6 5 13.41 67.05 Interview panel G6 0 13.41 0.00Interview report G6 5 13.41 67.05 Interview report G6 0 13.41 0.00Reference check G7 3 15.42 46.26 Reference check G7 0 15.42 0.00Compliance Review Panel G6 4 13.41 53.64 Compliance Review Panel G6 0 13.41 0.00Compliance Review Panel NOB 2 15.81 31.62 Compliance Review Panel NOB 0 15.81 0.00Compliance Review Panel NOC 2 18.34 36.68 Compliance Review Panel NOC 0 18.34 0.00Compliance Review Panel P4 2 116.1 232.20 Compliance Review Panel P4 0 116.1 0.00CRP Report G7 1 15.42 15.42 CRP Report G7 0 15.42 0.00 Endorsement by HoA D1 1 153.81 153.81 Endorsement by HoA D1 1 153.81 153.81Offer letter G6 0.5 13.41 6.71 Offer letter G6 0.5 13.41 6.71Medical clearance G6 0.5 13.41 6.71 Medical clearance G6 0.5 13.41 6.71Appointment letter G6 0.5 13.41 6.71 Appointment letter G6 0.5 13.41 6.71

Create staff vendor G7 1 15.42 15.42 Create staff vendor G7 1 15.42 15.42Hiring (Insurance, payroll setup, pension fund declaration

G7 2 15.42 ,30.84 Hiring (Insurance, payroll setup, pension fund declaration

G7 2 15.42 30.84

Total 87.5 1783.08 7 286.05The above table indicates that the standard recruitment process without joint recruitment will take 87.5 hrs. and a labor cost of USD 1,783.08 however, the same recruitment process with joint recruitment will take only 7 hrs. and a labor cost of USD 286.05. This implies there is a USD 1,497 transaction cost reduction per recruitment process due to joint recruitment.

Benefit-labor cost saving from joint recruitment process

Table 2.2. Labor cost saving from joint recruitment

43


BOS 2016-2020

Recruitment process Time required to complete one recruitment process (in hrs)

Labor cost required to complete one recruitment process (USD)

Without joint recruitment 87.5 1783.08With joint recruitment 7 286.05Saving per recruitment process 80.5 1497

According to the data obtained from 10 UN agencies (FAO, ILO, IOM, UNAIDs, UNDP, UNHCR, WHO, UNESCO, UNICEF and UNOPS), the total number of staffs recruited in 2014 was 371. Assume 10% of the staff recruited through joint recruitment process, i.e. 40 staffs per year, the total labor cost saving per year will be USD 59,880. In the BOS cycle 2016-2020, the UNCT can save the transaction cost of USD 299,400.

Benefit-labor cost saving from UN Common Roster of Consultant

Activity Based Costing method for Roster of ConsultantsThe table below shows the labor cost saving from recruiting consultant from the Roster of Consultant.

44


BOS 2016-2020

Table 2.2. Recruitment process without Roster Recruitment process using Roster of Consultants


Time spent (in hours)


Total cost (USD)


Time spent (in hours


Total cost (USD)

Requisition and Sourcing Requisition and SourcingPrepare TOR and submit request to the procurement unit G6 8.5 13.41 113.99

Prepare TOR and submit request to the procurement unit G6 8.5 13.41 113.99

Prepare TOR and submit request to the procurement unit NOB 8.5 15.81 134.39

Prepare TOR and submit request to the procurement unit NOB 15.81 0.00

Procurement unit review request and TOR G7 8.5 15.42 131.07

Procurement unit review request and TOR G7 15.42 0.00

Procurement unit review request and TOR NOB 4.25 15.81 67.19

Procurement unit review request and TOR NOB 15.81 0.00

Position advertised on the website G5 51 11.56 589.56 Position advertised on the website G5 11.56 0.00Position advertised on the website G7 17 15.42 262.14 Position advertised on the website G7 15.42 0.00Long listing of Candidates G7 17 15.42 262.14 Long listing of Candidates G7 15.42 0.00Long listing of Candidates NOB 17 15.81 268.77 Long listing of Candidates NOB 15.81 0.00Short list based on candidates profiles G7 8.5 15.42 131.07

Short list based on candidates profiles G7 15.42 0.00

Short list based on candidates profiles NOB 8.5 15.81 134.39

Short list based on candidates profiles NOB 15.81 0.00

Short listed candidates asked to provide full proposal G5 2.125 11.56 24.57

Short listed candidates asked to provide full proposal G5 2.125 11.56 24.57

Technical evaluation and reporting G7 8.5 15.42 131.07 Technical evaluation and reporting G7 8.5 15.42 131.07Technical evaluation and reporting NOB 8.5 15.81 134.39 Technical evaluation and reporting NOB 8.5 15.81 134.39Financial evaluation and finalization of selection process G7 2.125 15.42 32.77

Financial evaluation and finalization of selection process G7 2.125 15.42 32.77

Financial evaluation and finalization of selection process NOB 2.125 15.81 33.60

Financial evaluation and finalization of selection process NOB 2.125 15.81 33.60

Process review and approval NOB 4.25 15.81 67.19 Process review and approval NOB 4.25 15.81 67.19Discussion with selected candidates on details and pricing G7 8.5 15.42 131.07

Discussion with selected candidates on details and pricing G7 8.5 15.42 131.07

Discussion with selected candidates on details and pricing NOB 8.5 15.81 134.39

Discussion with selected candidates on details and pricing NOB 8.5 15.81 134.39

Discussion with selected candidates on details and pricing NOC 8.5 18.34 155.89

Discussion with selected candidates on details and pricing NOC 8.5 18.34 155.89

Approval and signature of Contract P5 4.25 133.91 569.12Approval and signature of Contract P5 4.25 133.91 569.12

Vendor creation and E-requisition Vendor creation and E-requisitionVendor create and approval G5 4.25 11.56 49.13 Vendor create and approval G5 4.25 11.56 49.13Requisition adjustment NOB 2.125 15.81 33.60 Requisition adjustment NOB 2.125 15.81 33.60

Requisition re-approval (if required) NOC 2.125 18.34 38.97Requisition re-approval (if required) NOC 2.125 18.34 38.97

PO processing PO processingReview of documentation G5 2.125 11.56 24.57 Review of documentation G5 2.125 11.56 24.57Sourcing of requisition into PO G6 4.25 13.41 56.99 Sourcing of requisition into PO G6 4.25 13.41 56.99

PO approval PO approvalReview and approval the PO NOB 2.125 15.81 33.60 Review and approval the PO NOB 2.125 15.81 33.60Notify the requester G6 2.125 13.41 28.50 Notify the requester G6 2.125 13.41 28.50

Budget check and dispatch Budget check and dispatchCheck budget and dispatch PO G5 2.125 11.56 24.57 Check budget and dispatch PO G5 2.125 11.56 24.57Documentation of the process G6 2.125 13.41 28.50 Documentation of the process G6 2.125 13.41 28.50

Certification and payment Certification and paymentCertification of delivery and payment order NOB 4.25 15.81 67.19

Certification of delivery and payment order NOB 4.25 15.81 67.19

Send PO to finance with documentation G5 8.5 11.56 98.26

Send PO to finance with documentation G5 8.5 11.56 98.26

Process payment G5 25.5 11.56 294.78 Process payment G5 25.5 11.56 294.78

Process payment G7 4.25 15.42 65.54 Process payment G7 4.25 15.42 65.54

Total 272 4,352.91 Total 131.75 2,372.20

Table 2.3. Saving from UN Common Roster of Local Consultants and Support Service

Type of recruitment Time required to recruit a consultant in hours

Labor cost required to recruit (USD)

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BOS 2016-2020

Recruitment without using Roster of Consultant 272 4352

Recruitment using Roster of Consultant 132 2372

Saving per recruitment 140 1,980

According to the data obtained from 10 UN Agencies (FAO, ILO, IOM, UNAIDs, UNDP, UNHCR, WHO, UNESCO, UNICEF, UNOPS), a total of 325 consultants were recruited in 2014.Assume that 40% of the total, i.e. 130 consultants are recruited from the Roster, there will be a labor cost saving of USD 257,400 per year. Over the BOS cycle, the total amount of saving will reach USD 1,029,600.

Monetary benefit-direct cost saving from Joint learning programme

According to the data obtained from the above 10 UN agencies, the total training cost paid in 2014 was USD 370,628. Assume 5% of this training cost is covered by organizing joint training programme. This shows that there will be annual saving of USD 18, 500 per year. Over the BOS2.0 cycle, the UNCT/OMT will save a total amount of USD 92,500

Monetary Cost

Monetary cost is the one time and/or the recurring cost needed to implement the activities of the working group during the BOS2.0 period, i.e. 2016-2020. It can be a one-time or recurring cost

Table 2.4. One Time Cost-monetary cost

Common Service Item Year 1 (2016) (USD)

Year 2 (2017)

Year 3 (2018)

Year4 (2019)

Year 5 (2020)

Total(USD)

Establish Joint advertisement and recruitment modality

Refreshment 300 300

Develop UN common Roster of Consultant

Advertisement cost for Consultancy 200 200Consultancy fee to develop UN Roster of consultant & harmonize local consultancy rate

5000 5000


CBI training (Refreshment, DSA, travel for facilitator)

1500 1500

Conference facility 1000 1000Total One Time Cost 8000 8000

Table 2.5. Recurring Cost-monetary cost

Common service Item Year 1 (2016) (USD)

Year 2 (2017)

Year 3 (2018)

Year4 (2019)

Year 5 (2020)

Total


Staff joint training programme (Conference facility)

1000 1000 1000 1000 1000 5000

OMT trainings (Retreat, induction program

2000 2000 2000 2000 2000 10,000

Total Recurring Cost 3000 3000 3000 3000 3000 15,000

Coordination Cost There is a coordination cost from the OMT members to coordinate and Human Resource working members to perform the activities assigned to the working group. The table below shows the coordination cost of the Human Resource working groups. The chair and co-chair will spent 30 hours per year and the rest members will spend 20 hours per year for coordination.

Table 2.6. Coordination cost HR Working Group

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BOS 2016-2020

Working Group Grade Level Time Required(in hrs)

Pro-Forma Cost(per hour) (USD)

Total (USD)

Chair NOB 30 15.81 474.3 Member P4 20 116.1 2322 Member G7 20 15.42 308.4 Member G6 20 13.41 268.2 Member P2 20 86.35 1727 Member G4 20 9.25 185 Member G5 20 11.56 231.2 Member NOC 20 18.34 366.8

Member P4 20 116.1 2322

Member NOA 20 13.99 279.8

Member NOA 20 13.99 279.8

Member G6 20 13.41 268.2

CO-Chair P4 30 116.1 3483

Member NOC 20 18.34 366.8

Sub Total 300 12,882

GOE (30% OF TOTAL COST) 3,864

TOTAL HRWG BOS COORDINATION COST 16,747

Besides, the coordination cost of the OMT to the human resource working group in a year is 91 hours with a cost of USD 11,401.55

2.3.3. Finance Working Group

Benefit-Monetary saving from harmonizing banking service

As per the data obtained from the Commercial Bank of Ethiopia-ECA branch, the total amount of service charge paid by 9 UN agencies (FAO, ILO, IOM, UNDP, UNECA, UNESCO, UNICEF, UNOPS, WFP)in 2014 was USD 188, 514.51. One of the key priority area for the working group during BOS2.0 cycle is to conduct banking survey and assign a lead agency which negotiates with banks on behalf of other UN agencies to improve services and get reasonable bank service fee on a competitive basis in the BOS2.0. Thus, if it is possible to get a 10% reduction through negotiation on the service charge, the UNCT/OMT can save USD 18,800 yearly. Over the BOS2.0 cycle, it is possible to save USD 94, 000. Besides, the Commercial Bank of Ethiopia waived service charge on salary payment which was ETB 5/person (USD 0.25/person). This benefit will also be maintained if the UN Agencies sign an agreement with banks.

Benefit- Monetary saving from foreign currency exchange transaction

The National Bank of Ethiopia issued a new directive on February 2014. According to this directive, the foreign exchange rate has been fixed at the minimum rate and banks are required to offer the lowest / buying exchange rates to UN Agencies whenever later sell foreign currency to banks. Before the issuance of the directive, UN Agencies were able to negotiate the exchange rate with banks and sell foreign currency at the maximum available rate, the selling rate. The table below shows the amount of USD converted to Ethiopian Birr from 6 UN Agencies in 2014 and the loss due to the new directive in Ethiopia

Table 2.7. Amount of loss in foreign exchange dealing

Year UN Agencies Amount of USD converted to Ethiopian Birr

Amount of Loss due to the new directive (USD)

Loss in %

2014 WFP, UNDP, UNHCR, UNICEF, UNESCO, WHO 392,319,792.18 7,846,395.84 2Total 392,319,792.18 7,846,395.84 2

The data collected from these Agencies indicated that the amount of loss in 2014 due to the new directive was USD 7,846,395.84. This shows that on average the UN Agencies in Ethiopia will lose 2 % of the amount of USD converted to

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BOS 2016-2020

Ethiopian Birr in each year. Over the BOS period 2016-2020, the total loss will be more than USD 30 Million. If the UN Agencies negotiate with the Government of Ethiopia and save at least 40/% of the loss, i.e. USD 3,200,000 per year, over 5 years it will be possible to save USD 16 Million.

Monetary cost is the one time and/or the recurring cost needed to implement the activities of the working group during the BOS2.0 period, i.e. 2016-2020. It can be a one-time or recurring costTable 2.8. One Time Cost- monetary cost

Common Service Item Year 1 (2016) Year 2 (2017) Year 3 (2018) Year4 (2019)

Year 5 (2020)

Total

Common Banking service Advertisement cost 200 200Consultancy fee for banking survey 3000 3000

Harmonize foreign exchange dealing Refreshment 200 200Total One Time Cost 3400 3400

Coordination Cost

There is a coordination cost from the finance working members and OMT members to perform the activities assigned to the finance working group. The table below shows the coordination cost of the finance working groups. The chair and co-chair will spent 30 hours per year and the rest members will spend 20 hours per year for coordination.

Table 2.9. Coordination cost

Working Group Grade Level Time Required(in hrs) Pro-Forma Cost(per hour) (USD)

Total (USD)

Chair NOC 30 18.34 550.20Co-Chair P4 30 116.1 3,483.00

Member G6 20 13.41 268.20

Member P4 20 116.1 2,322.00

Member G4 20 9.25 185.00Member G6 20 13.41 268.20

Member NOA 20 13.99 279.80

Member SSA 20 7.21 144.20Member NOB 20 15.81 316.20

Member NOC 20 18.34 366.80Member NO-A 20 13.99 279.80SUBTOTAL 240 8,463.40

GOE (30% OF TOTAL COST) 2,539.02

TOTAL FWG COORDINATION COST 11,002.42

The annual coordination cost of the finance working group member is USD 11,002.42. Besides, the coordination cost of the OMT members to the finance working group USD 11,401.55 per year.

2.3.4. Harmonized Approach to Cash Transfer /HACT/

Benefit-Monetary

1. Saving from Joint Micro-Assessment.

The UNCT in Ethiopia has signed a UNICEF-led LTAs with two local audit firms for the HACT micro-assessment of the UN’s implementing partners, i.e. Merit Management Consulting firm and A.W.Thomas Limited Partnership on March 2015 and these LTAs will be active until March 2017. Thus, there will not be labor saving, i.e. no saving on staff time on the creation of LTA. But there will be cost saving in conducting micro-assessment of shared IPs jointly by lead agency over by individual agencies. The table below shows the saving from conducting micro-assessment of shared IPs.

Table 2.10. Cost saving due to Joint Micro-Assessment

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BOS 2016-2020

Average cost per IP (including professional

fee, travel, per diem and other cost) in USD

No. of Shared

IPs

No of UN Agencies

Total cost required to conduct micro-assessment

of IPs if each individual agency conduct by itself

(USD)

Total cost required to conduct micro-

assessment of IPs jointly by lead agency (USD)

Cost saving due to joint micro-

assessment (USD)

3,000 24 3 252,000 84,000 144,000

Total cost saving due to joint micro-assessment of shared IPs 144,000

2. Saving from Joint capacity development

The RCO and HACT working group organized a joint capacity development programme on HACT training on Sep’t and Nov. 2015. 145 staffs from 78 IPs (35 staffs from 18 NGOs and 110 staffs from 60 government IPs) were attended the training. The total cost of the training was USD 39,391. The training cost per IP was USD 500. For 24 shared IPs, the total saving from conducting joint capacity development programme in HACT training will be given as follow:

Table 2.11. Cost saving from joint capacity development

No. of shared IPs Average Cost per IP (USD)

No. of UN agencies Total cost required to conduct capacity development programme if each individual agency conduct by itself (USD)

Total cost required to conduct capacity development programme jointly by lead agency (USD)

Cost saving due to joint capacity development programme (USD)

24 500 3 36,000 12,000 24,000Total cost saving from joint capacity development programme in HACT trainings per training 24,000

Table 2.12. Summary for recurring monetary benefit

Item Item Year 1 (2016) (USD)

Year 2 (2017) (USD)

Year 3 (2018) (USD)

Year4 (2019) (USD)

Year 5(2020) (USD)

Total (USD)

Conduct Joint micro-assessment

Monetary saving 24,000 30,000 30,000 30,000 30,000 144,000

Develop Joint capacity development Programme

Monetary saving 4,800 4,800 4,800 4,800 4,800 24,000

Total Recurring monetary benefit

31,200 42,000 42,000 42,000 42,000 168,000

3. Saving from joint scheduled audit

Benefit-Recurring Labor cost saving

In Ethiopia, UN agencies have individual contract with different audit firms with different cost. This will take much of the staff time to advertise, develop and renew LTA.

Activity Based Costing method (ABC) of Scheduled Audit by Agency

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BOS 2016-2020

Description Grade level of staff involved

Time taken in hours

Pro Forma cost per hour in USD

Total costIn USD

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BOS 2016-2020

Check the price rating and amount of cash planned to be transferred to the IP

NOC 0.5 18.34 9.17

Prepare TOR for schedule audit NOC 4 $18.34 73.36Recruitment of third party service provider Technical Evaluation P4 7.5 116.1 870.75Technical Evaluation P4 7.5 116.1 870.75Technical Evaluation NOC 7.5 18.34 137.55Technical Evaluation NOC 7.5 18.34 137.55Technical Evaluation G6 7.5 13.41 100.58Financial Evaluation P3 7.5 97.53 731.48Financial Evaluation NOC 7.5 18.34 137.55Financial Evaluation G6 7.5 13.41 100.58Prepare contract and contact audit firm P3 4 97.53 390.12Discuss with the third party service provider before the audit

NOC 4 18.3473.36

Discuss with the third party service provider before the audit

G6 4 13.4153.64

Project Management Unit shares audit report to sections for comments

NOC 0.5 18.349.17

Review the report NOC 7.5 18.34 137.55Review the report NOB 7.5 15.81 118.58Review the report G6 7.5 13.41 100.58Review the report G5 7.5 11.56 86.70Project Management Unit submit consolidated comments to the audit firm

P5 6 133.91803.46

Project Management Unit submit consolidated comments to the audit firm

P4 6 116.1696.60

Audit firm incorporates comments and share to the PMU $0.00Discuss with each IP on overall risk rating NOB 4 15.81 63.24If significant number of IPs are identified as significant or high risk prepare capacity development plan

NOC 1 18.3418.34

Total 124 5,720.64

The above table shows that to conduct a scheduled audit in an IP by UN Agency requires a total time of 124 hours and a transaction cost of USD 5,720.64. The labor cost saving from having joint audit on 24 shared IPs by 3 UN Agencies (UNDP, UNICEF and UNFPA) is given as follows:

No. of shared IPs Transaction cost per IP in USD

No. of UN agencies funding for shared IPs

Total transaction cost if scheduled audit is conducted by individual Agencies in USD

Total transaction cost if joint scheduled audit is conducted on shared IPs through a lead Agency in USD

Labor cost saving in USD

24 5720.64 3 411,886.08 137,295.36 274,590.92Total labor cost saving from 24 shared IPs 274,590.92

Monetary Cost

Table 2.13. One time monetary cost

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BOS 2016-2020

Common service Item Year 1(2016)(USD)

Year 2 (2017) (USD)

Year 3 (2018) (USD)

Year4 (2019) (USD)

Year 5 (2020)(USD)

Total (USD)

Conduct joint micro-assessment

Logistics for validation session

1,000 1,000

Conduct Joint audits Advertisement cost for LTA development

1,500 1,500

Audit fee for shared IPs

4,800 4,800

Joint capacity developmentprogramme

Refreshment& conference facility

1,500 1,500

Total one time labor cost 5,200 5,200

Coordination cost

There is a coordination cost from the HACT working members and OMT members to perform the activities assigned to the working group. The table below shows the coordination cost of the working groups. The chair and co-chair will spent 30 hours per year and the rest members will spend 20 hours per year for coordination

Table 2.16. Coordination cost of the HACT working group members

Working Group Grade Level Time Spent (in hrs) (USD) Pro-Forma cost (per hour) (USD) Total (USD)

Co-Chair SB4 30 7.21 216.3Member G6 20 13.41 268.2Member P4 20 116.1 2322Member P3 20 97.53 1950.6Member G7 20 15.42 308.4Member P4 20 116.1 2322member NOC 20 18.34 366.8member G6 20 13.41 268.2Member P4 20 116.1 2322Focal Point P3 20 97.53 1950.6Member G7 20 15.42 308.4Member NOB 20 15.81 316.2Member NOC 20 18.34 366.8

Sub-total 270 13,286.5

GOE (30% of total cost) 3,985.95

TOTAL HACT WG BOS COORDINATION COST 17,272.45

The table above indicated that the coordination cost of the working group members per year is USD 17,272.45

Besides, the coordination cost of the OMT to the finance working group in a year takes 91 hours with a cost of USD 11,401.55

Table 2.17. Cost-Benefit Analysis (CBA)

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BOS 2016-2020

Cost Benefit Analysis (CBA)Direct costs/benefits(USD) Indirect

costs(USD)

Cost Avoidance (USD) Other costs/benefits

Final prioritization of services

A B C D E F G H I JCommon Service Line (Outcome)

Proposed common service (output)

Direct costs(Monetary & labor)

Direct benefit (monetary & labor)

Indirect cost (fixed 8%)

Total cost(C+E)

Total benefitD

Priority ratio:Total benefit/total costG/F

Common procurement

Established additional 28 common LTAs for goods and services

261,088 16,163,398 20,887.04 281,975 16,163,398 57

Human Resources

Conduct Joint advertisement &recruitment

11,742 299,400 11,742 299,400 25

Develop UN Common Roster of Local Consultant and Support Service Staff

242,400 990,000 242,400 990,000 4

Develop common learning programme

17,500 92,500 17,500 92,500 5

Finance Common Banking Service

3,200 94,000 3,200 94,000 29

Harmonization in foreign exchange dealing

20,000 16,000,000 20,000 16,000,000 800

HACT Conduct joint micro-assessment

10,000 144,000 1000 144,000 14

Conduct joint audit 6,300 274,590 6,300 274,590 44

Develop joint capacity development programme

1,500 24,000 1,500 24,000 16

2.4. Prioritization

CHAPTER 3: BUSINESS OPERATIONS STRATEGY (BOS)2.0 RESULTS FRAMEWORK

3.1. BOS Results Framework Overview

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BOS 2016-2020

The BOS Results Framework captures the priorities of common business operations. The BOS2.0 has two levels of results statements, the Outcome statements and the Output statements. It is the basis for monitoring and evaluation of BOS. It is also the basis for annual work planning and development of the BOS Budgetary Framework.

The BOS2.0 Results Framework comprises:

The BOS Results Framework is made up of existing outcomes/outputs (drawn from the previous BOS1.0 and/or the stock take) and new outcomes/outputs (drawn from the needs analysis, cost benefit analysis and prioritization exercise). The BoS2.0 result framework has six BOS2.0 outcomes. These are

Each of the above common service line/pillars/ has its own common service /output/ and described as follows:

Outcome 1: Common Procurement Working Group

Outcome statement: By 2020, the UNCT/OMT has improved the quality and cost effectiveness of its procurement activities.

This common service line has 3 common services/outputs/. They are

Output 1.1: The UNCT/OMT has established 28 joint LTAs for agreed categories of goods and services

Key performance Indicator Baseline (2014) Target (2020)No of additional joint LTAs in place 4 32Estimated cost saving from a target of 7% discount from additional joint LTAs

USD 0 USD 10,272,176

Estimated transaction cost avoided from the use of additional joint LTAs

USD 0 USD 5,891,222

Output 1.2: The UNCT/OMT has provided joint capacity development training to the UN procurement staffs and suppliers/vendors.

Key performance Indicator Baseline (2014) Target (2020)

54

BOS outcomes BOS outputs BOS Key Performance Indicators (KPIs) BOS baselines BOS targets Risks and assumptions

o Outcome 1: Common Procuremento Outcome 2: Common Human Resourceso Outcome 3: Common BCM & ICTo Outcome 4: HACTo Outcome 5: Common Financeo Outcome 6: Host Country Agreement/Legal


BOS 2016-2020

No of joint procurement trainings, workshops or seminars conducted

1 8

% customers surveyed who are satisfied with the quality of trainings, workshops or seminars provided

0% >95%

Output 1.3: The UNCT/OMT has developed a regional LTA database and make accessible for Five BOS implementing countries in Eastern Africa.

Key performance Indicator Baseline (2014) Target (2020)Established a regional LTA database No Yes

Outcome 2: Human Resources and Common Premises Working Group

Outcome statement: By 2020, the UNCT/OMT harmonized the human resource management and realized an efficiency gain in recruitment and training.

This common service line has 6 common services/outputs/. They are

Output 2.1: The UNCT/OMT has realized an efficiency gain on transaction cost of USD 299,400 by conducting joint advertisement and recruitment of staff.

Key performance Indicator Baseline (2014) Target (2020)Estimated transaction cost avoided from joint advertisement and recruitment

USD 0 USD 299,400

Number of staffs recruited by joint advertisement and recruitment modality

0 200

Number of UN agencies participated in the joint advertisement and recruitment modality

0 13

Output 2.2: The UNCT/OMT has realized an efficiency gain on transaction cost of USD 990,000 by recruit local consultant from UN Roster of Local Consultants and Support service.

Key performance Indicator Baseline (2014)

Target (2020)

Estimated transaction cost avoided from the use of UN Roster of Consultants USD 0 USD 1,029,600Number of consultants recruited from the UN Roster of consultant 0 520Number of UN agencies that recruit consultants from the UN Roster of consultants

0 25

Output 2.3: The UNCT/OMT has established the accountability framework to recognize individual showing outstanding achievement in the OMT/WG’s work.

Key performance Indicator Baseline (2014) Target (2020)Established Accountability Framework No YesNumber of individuals awarded using the accountability framework 0 125

Output 2.4: The UNCT/OMT has developed and conducted joint learning programme.

Key performance Indicator Baseline (2014) Target (2020)Number of trainings conducted through joint learning programme 0 10Estimated cost saving from conducting joint learning programme USD 0 USD 92,500Number of UN Agencies participated in the joint learning programme 0 13

Output 2.5: The UNCT/OMT has created conducive environment for employment by harmonizing local consultancy rate and internship modality.

Key performance Indicator Baseline (2014) Target (2020)Harmonized local consultancy rate among UN Agencies No Yes

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BOS 2016-2020

Harmonized internship modality among UN Agencies No Yes

Outcome 3: Finance Working Group

Outcome statement: By 2020, the UNCT/OMT has realized a cost saving by harmonizing its financial transaction

This common service line/pillar has 3 common services /outputs. They are:

Output 3.1: The UNCT/OMT has realized cost saving and obtained quality service due to the agreement with bank on behalf of all UN Agencies.

Key performance Indicator Baseline (2014) Target (2020)Estimated cost saving from joint banking service USD 0 USD 94,000

Output 3.2: The UNCT/OMT has realized a cost saving of USD 16 Million by harmonizing foreign exchange dealing


Target (2020)

Estimated cost saving from harmonizing foreign exchange dealings USD 0 USD 16,000,000Number of UN Agencies participated in harmonizing foreign exchange dealings 0 13

Output 3.3: The UNCT/OMT has conducted a common VAT reclaim to avoid the loss of revenue from uncollected VAT.

Key performance Indicator Baseline (2014) Target (2020)Conducted a common VAT reclaim of UN Agencies on a yearly basis No Yes

Outcome 4: Harmonized Approach to Cash Transfer/HACT/ Working Group

Outcome statement: By 2020, the UNCT/OMT has realized that all UN Agencies providing fund to IPs and their respective IPs become fully implementing HACT framework.

The common services/outputs/for this common service line is:

Output 4.1: The UNCT/OMT has conducted joint micro-assessment of shared IPs through a lead agency.

Key performance Indicator Baseline (2014) Target (2020)Estimated cost saving from conducting joint micro-assessment of IPs USD 0 USD 144,000Number of shared IPs assessed through joint micro-assessment 0 24

Output 4.2: The UNCT/OMT has conducted joint scheduled audit of shared IPs through a lead agency


Target (2020)

No. of shared IPs covered through joint scheduled audit 0 24Estimated transaction cost avoided from conducting joint scheduled audits of IPs USD 0 USD 274,590

Output 4.3: The UNCT/OMT has provided joint capacity development trainings on HACT to IPs


Target (2020)

Estimated cost saving from conducting joint capacity development programme USD 0 USD 24,000

Output 4.4: The UNCT/OMT developed a joint assurance plan to shared IPs

Key performance Indicator Baseline (2014) Target (2020)Established a joint assurance plan to shared IPs No YesNumber of joint spot checks conducted 0 4

Output 4.5: The UNCT/OMT has created a HACT database and upload IPs regularly

Key performance Indicator Baseline (2014) Target (2020)Established a HACT database and upload IPs No Yes

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BOS 2016-2020

Outcome 5: Business Continuity Management & Information Communication Technology (BCM &ICT) Working Group

Outcome statement: By 2020, the UNCT has strengthened organizational resilience and business continuity services.

The common services/outputs/ of this common service line/pillar is:

Output 5.1: The UNCT/OMT has launched information and Knowledge Management (IKM) platform and make accessible to all UN Agencies.

Key performance Indicator Baseline (2014) Target (2020)Established IKM and make accessible to UN Agencies No Yes

Output 5.2: The UNCT/OMT has finalized and operationalized a joint Business Continuity Management Framework both in Addis and field offices.

Key performance Indicator Baseline (2014) Target (2020)

Finalized and implemented a joint BCM framework No YesNumber of operational business continuity framework in place for the UN premises in field 0 3

Output 5.3: The UNCT/OMT has a one UN (common) network.

Key performance Indicator Baseline (2014) Target (2020)Established a One UN network No Yes

Output 5.4: The UNCT/OMT has a one UN (common) IT data center.

Key performance Indicator Baseline (2014) Target (2020)Established a One UN IT data center No Yes

Output 5.5: The UNCT/OMT has established a common telephony service to UN Agencies.

Key performance Indicator Baseline (2014) Target (2020)Established a common telephony service No Yes

Output 5.6: The UNCT/OMT has established a common internet services to UN Agencies.

Key performance Indicator Baseline (2014) Target (2020)Established a common Internet service No Yes

Outcome 6: Host Country Agreement/Legal Working Group

Outcome statement: By 2020, the UNCT/OMT has finalized the Host Country Agreement and protects the immunities and privileges of UN Agencies and their staffs.

This common service line/pillar/ has the following 4 common services/outputs/:

Output 6.1.The UNCT/OMT has provided sensitization training to judiciary, police, custom and Tax authority on immunities and privilege of UN Agencies and their staff.

Key performance Indicator Baseline (2014) Target (2020)Number of sensitization trainings provided 2 7

Output 6.2: The OMT has Prepared Supplemental Agreement to UN Agencies.

Key performance Indicator Baseline (2014) Target (2020)Prepared supplemental agreements to UN Agencies No Yes

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BOS 2016-2020

Output 6.3: The OMT has provided regular briefing to UN Staff on their privileges, immunities and obligations.

Key performance Indicator Baseline (2014) Target (2020)Regular briefing provided to UN staffs on a yearly basis No Yes

Output 6.4: The OMT has supported the UNCT to negotiate and obtain suitable banking services, acceleration of immigration and custom procedures.

Key performance Indicator Baseline (2014) Target (2020)Provided support to the UNCT in the negotiation to obtain suitable banking service

No Yes

Provided support to the UNCT in the acceleration of immigration and customs procedure

No Yes

CHAPTER 4: MONITORING AND EVALUATION PLAN

Monitoring and Evaluation (M&E) framework enables UNCTs and OMTs to plan, monitor, evaluate and report the progress of business operations harmonization using key performance indicators (KPIs) at country level. The M & E

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BOS 2016-2020

framework enables the UN system in Ethiopia to report at the global level about the quality, effectiveness, and efficiency of common business operations.

The Monitoring and Evaluation (M &E) plan is used to systematically plan the collection of data to assess and demonstrate progress made in achieving expected results. It highlights mechanisms for monitoring the achievement of outputs and contribution towards the achievement of outcomes.

The M & E plan incorporates some elements of the result matrix such as indicators, baselines, targets and means of verifications. In addition, the M & E plan will elaborate on the frequency and responsibility.

The main expected users of the Business Operation M & E framework are UNCTs and OMTs. UNCT seeks to find savings and reduce transaction costs from common services and harmonized business solutions. Results and indicators related to Business Operations Harmonization should be included in the Annual Work Plan of the country Operations Management Team (OMT).

Results

The framework provides a set of generic results statements [outcomes and outputs] and indicators for use at country level:

Outcomes describe performance changes by the UN to improve the effectiveness, efficiency and quality of business operations at country level.

Outputs are the tangible new skills, services, and products that are produced by the UNCT and OMT which contribute logically to the achievement of the outcome

Indicators Indicators provide the means to measure actual progress against the expected business operations results. Each business operations area has a small number of required KPIs that must be used

Monitoring and evaluation systems have two main components: results and key performance indicators that describe ‘what’ is to be measured, and management arrangements and mechanisms that govern ‘who’ does what, ‘when’ and ‘how’.

Information and Knowledge Management (IKM) platform

IKM is one of the monitoring tools for the OMT. The IKM platform offers a portal for UN staff from all agencies working in the country, both resident and non-resident, for interaction and exchange of ideas and knowledge. It is a tool that can contribute to optimization of the use of staff resources and time, and thereby improve quality and the cost of the organisation’s outputs. It is a tool which can be used to share information within the UNCT, with relevant partners, stakeholders including OMT, Programme Management Team (PMT), UN Communication Group (UNCG) and other Delivering as One(DaO) pillars and Working Groups. The IKM platform is displayed as follows:

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BOS 2016-2020

Results and indicators for each business operations area are provided in a table below

Result Indicator Means of verification Frequency Responsible body

Outcome 1: By 2020, the UNCT/OMT has improved the quality and cost effectiveness of its procurement activitiesOutput 1.1 Established Common Long Term Agreements for agreed categories of goods and services

No of additional joint LTAs in place IKM Quarterly RCOEstimated cost saving from a target of 7% discount from additional joint LTAs

Report from CP Working Group

Quarterly RCO

Estimated transaction cost avoided from use of additional joint LTAs.


Quarterly RCO

Output 1.2 Provided joint capacity development training to the procurement staffs and suppliers/vendors

Number of joint procurement training, workshops or seminars conducted.


Quarterly CP Working Group

% customers surveyed who are satisfied with the quality of trainings, workshops or seminars provided.

Survey result Annually RCO

Output 1.3. Developed a regional LTA database and make accessible for BOS countries in Eastern Africa

Established a regional LTA database and make accessible

IKM, Report from CP Working Group

CP Working Group

Number of regional LTAs make accessible on the database

IKM, Report from CP Working Group

Quarterly RCO

Outcome 2: By 2020, the UNCT/OMT harmonized the human resource management and realized an efficiency gain in recruitment and training

Output2.1. The UNCT/OMT has realized an efficiency gain on transaction cost of USD 299,400 by conducting joint advertisement and recruitment of staff.

Estimated transaction cost avoided from conducting joint advertisement and recruitment

Report from HR WG Quarterly RCO

Output2.2. The UNCT/OMT has realized an efficiency gain on transaction cost of USD 990,000 by recruit consultant from Roster of Consultant

Estimated transaction cost avoided from use of UN Roster of Local Consultants

Report from HR WG Quarterly RCO

Output2.3. The UNCT/OMT has established the

Established Accountability Framework

Report from HR WG Quarterly HR WG

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BOS 2016-2020

accountability framework to recognize and award individual showing outstanding achievement in the OMT/WG’s work.

Output 2.4. The UNCT/OMT has realized cost reduction by developing joint learning programme

` Estimated cost saving from conducting joint learning programme

Report from HR WG Quarterly HR WG

Output 2.5. The UNCT/OMT has created conducive environment for employment by harmonizing local consultancy rate and internship modality

Harmonized local consultancy rate and internship modality

Report from HR WGSurvey

Quarterly RCO

Outcome 3: By 2020, the UNCT/OMT has realized a cost saving by harmonizing its financial transactionOutput 3.1.

The UNCT/OMT has made an agreement with bank on behalf of all UN Agencies and realized cost reduction and obtained quality service

Estimated cost saving from joint banking

Report from Finance WG Quarterly Finance WG

Output 3.2. The UNCT/OMT has realized a cost saving by harmonizing its foreign exchange dealing with banks

Estimated cost saving from harmonizing foreign exchange dealing

Report from Finance Working Group

Quarterly Finance WG

Output 3.3. The UNCT/OMT has conducted a common VAT reclaim and realized reduction in loss of revenue from uncollected VAT.

Conducted a common VAT reclaim of UN agencies

Report from Finance WG Quarterly Finance WG

Outcome 4: By 2020, the UNCT/OMT has realized all UN Agencies providing fund to IPs and their respective IPs become fully implementing HACT framework

Output 4.1. The UNCT/OMT has conducted joint micro-assessment of shared IPs through a lead agency

Estimated cost saving from conducting joint micro-assessment

Report from HACT WG Annually RCO

Output 4.2. The UNCT/OMT has conducted joint scheduled audit of shared IPs

Estimated cost saving from conducting joint scheduled audit


Estimated transaction cost avoided from conducting joint scheduled audit


Output 4.3. The UNCT/OMT has provided joint capacity development trainings on HACT to IPs

Estimated cost saving from conducting joint capacity development programme

Report from RCO Annually RCO

No of IPs covered by joint capacity development programmes conducted on HACT

Report from HACT WG Annually HACT WG

Output 4.4. The UNCT/OMT developed a joint assurance plan for shared IPs

Established a joint assurance plan to shared IPs

Report from HACT WG Quarterly HACT WG

Number of joint spot check sconducted

Report from HACT WG Annually HACT WG

Output 4.5. The UNCT/OMT created a HACT database and upload IPs

Established a HACT database and upload IPs

IKM Quarterly RCO

Outcome 5: By 2020, the UNCT/OMT has strengthened organizational resilience and business continuity services.Output 5.1 The UNCT/OMT has launched information and Knowledge Management (IKM) platform and make accessible to all UN agencies

Established IKM platform and make accessible to UN Agencies

Report from the BCM & ICT WG

Quarterly RCO

Output 5.2 The UNCT/OMT has finalized and implemented a joint Business Continuity Management Framework

Finalized and implemented the joint BCM Framework


Annually BCM & ICT WG

Number of operational business continuity framework in place for the UN


Quarterly BCM & ICT WG

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BOS 2016-2020

premises in field Output 5.3. The UNCT/OMT has a one UN (common) network.

Established a one UN (common) network



Output 5.4. The UNCT/OMT has a one UN (common) IT data center

Established a one UN (common) IT data center



Output 5.5. The UNCT/OMT has established a common telephony service among UN agencies.

Established a common telephony service among UN agencies



Output 5.6. The UNCT/OMT has established a common internet services among UN agencies

Established a common internet service



Outcome 6: By 2020, the UNCT/OMT has finalized the Host Country Agreement and protect the immunities and privileges of UN Agencies and their staffs

Output 6.1.The UNCT/OMT has provided sensitization training on immunities and privilege of UN Agencies and their staff

Number of sensitization training provided on immunities and privileges

Report from the HCA/Legal WG

Quarterly HCA/Legal WG

Output 6.2. The OMT has Prepared Supplemental Agreement to UN Agencies

Prepared Supplemental Agreements to UN Agencies



Output 6.3. The OMT has Provided regular briefing to UN Staff on their privileges, immunities and obligations

Provided regular briefing to UN staffs on a yearly basis


Annually HCA/Legal WG

Output 6.4.The OMT has supported the UNCT to negotiate and obtain suitable banking services.

Provided support to the UNCT in the negotiation to obtain suitable banking service



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BOS 2016-2020

Roles and Responsibilities

Leadership - The UN Country Team (UNCT)

The generic responsibilities of the UNCT for the BOS are:

Ultimate decision making for all matters related to common business operations Responsible for ensuring the alignment between the BOS and UNDAF Responsible for finalisation of the BOS and the achievement and reporting on agreed results Responsible for outlining the medium-term vision for common business operations and provides guidance to the

OMT with regards to the operationalization of the BOS Final decision making on issues that cannot be resolved at the OMT level Final endorsement of agreed annual work plans and budgets Endorsement of the BOS Roadmap and submission to UNDG/UNDOCO Final validation of the BOS document and submission to UNDG/UNDOCO

Coordination – Office of the UN Resident Coordinator (RCO)

The generic responsibilities of the RCO are:

Support to the OMT in coordination of the BOS development process Support for coordination of annual work planning and budgeting and presentation to the UNCT for approval Advising UNCT agenda to ensure common business operations related matters are reported by the OMT Assisting with BOS resource mobilisation as required Advice to the OMT and UNCT regarding latest UNDG/UNDOCO guidance related to common business operations Provision of M&E expertise in support of BOS monitoring

Management - Operations Management Team (OMT)

The generic responsibilities of the OMT for the BOS are:

Management and coordination of the development and implementation of the BOS Oversight of the annual monitoring of the BOS to ensure that service delivery is in line with the agreed KPIs Review and endorsement of Annual work plans and budgets of individual BOS task teams Regular reporting (by OMT Chairperson) to the UNCT2 on progress and issues regarding the implementation of the

BOS. Progress updates based on the KPIs and targets reflected in the BOS Results Framework; Implementation of required resource mobilisation strategies and the reporting of resource mobilisation

opportunities and issue to the UNCT Provides, or coordinates provision of M&E guidance to OMT task teams for quality monitoring of the BOS and the

development of Annual work plans (inclusive of annual targets) Overseas the work of OMT working groups/task teams Overseas the work of any time bound BOS task force3

Technical support and expertise - OMT task teams/working groups

The generic responsibilities of the OMT task teams/working groups are:

Participate in the BOS development through provision of data, BOS planning, identification of risks and limitations and development of the BOS Results Framework.

Responsibility for the annual work planning, budgeting, implementation and monitoring of their assigned BOS Outcome Area,

2 It is recommended that the OMT chair attends UNCT meetings to provide a regular update on common business operations3BOS task forces are generally time bound with the responsibility of developing and finalising the BOS on behalf of the full OMT. In some cases, BOS task force membership includes programme staff

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BOS 2016-2020

Provision of specialised technical expertise Highlighting of any resource mobilisation opportunities for the BOS to the OMT Regular reporting to the OMT (by the task team/working group chairperson) on progress against the relevant

annual work plan, highlighting any challenges and bottlenecks faced and proposed solutions Create links with programme staff working to increase dialogue and collaboration around identification of common

business operations needs linked to UNDAF implementation.

CHAPTER 5: GOVERNANCE STRUCTURES AND ACCOUNTABILITY MECHANISMS

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BOS 2016-2020

5.1. Arrangements and structures for BOS – roles and responsibilities

This BOS was created to support the One Operations component of the DaO reform in Ethiopia. Accordingly, it provides specific, measurable and achievable targets to ensure that the UN Agencies in the country operate in a complementary and harmonized manner. To guarantee its success, the BOS will be governed through the following UNCT mechanisms.

High-Level Steering Committee

Comprised of the host government, representatives of the UN agencies and other development partners, the High-Level Steering Committee (HLSC) provides strategic direction and oversight for successful implementation of the DaO. Accordingly, a progress report on the BOS implementation will be provided on an annual basis to the HLSC for review and endorsement.

United Nations Country Team

The United Nations Country Team (UNCT), which brings together the representatives of the UN organizations working in Ethiopia, is the ultimate decision-making body for all issues in the field of common/inter-agency operations. Under the leadership of the UN Resident/Humanitarian Coordinator, the UNCT works to ensure the successful adoption, implementation, and monitoring and evaluation of the BOS. To this end, the UNCT will review and endorse the OMT annual work plans, and mobilize the resources required for their achievement.Operations Management Team (OMT)

The Operations Management Team (OMT), comprised of the Operations Managers and/or Senior `Administrative Officers of the UN agencies, is responsible for the day-to-day management of the UNCT’s business operations, including the adoption and implementation of the BOS. It provides the UNCT with recommendations to improve the quality, timeliness and cost-effectiveness of the operational support to programme delivery. To facilitate its implementation, the OMT will translate the BOS into annual work plans and budgets.

65

High-level SteeringCommitee

United Nations Country Team (UNCT)

Operations Management Team(OMT)

Resident/Humanitarian Coordinator’s Office

Common Procurement

WG

Human Resource

WG

HACTWG

Finance WG BCM & ICTWG

HCA/Legal WG


BOS 2016-2020

The OMT Chairpersons serve as the lead for the adoption and implementation of the BOS, as well as OMT annual work plans. Hence, they will organize meetings for discussions, and coordinate with member agencies to ensure smooth running of the OMT, and successful implementation of its work plan.

The OMT will establish on an annual basis Working Groups comprised of technical area experts to enable the completion of the relevant activities of the OMT annual work plan. Chairpersons will also be appointed to help coordinate the contributions of these Working Groups.

The BOS designates lead agencies for each proposed inter-agency activity and initiative. These lead agencies are accountable to the UNCT for the successful and timely implementation of these activities, and achievement of the BOS outcome and outputs. Thus, lead agencies are expected to make the necessary arrangements for the implementation of the BOS, and hold discussions with Working Groups to finalize these.If funding is available from the UNCT budget, they will liaise with the OMT Chairpersons and RCO for the procurement of the necessary goods and services, including technical consultants.

For more details on the OMT’s working methods, please see annex for the OMT and technical working groups Terms of Reference (ToR).

Resident/Humanitarian Coordinator’s Office

The UN Resident/Humanitarian Coordinator’s Office (RCO) provides coordination support to the OMT. This includes assistance with the preparation and monitoring of the BOS, and associated OMT annual work plans. Moreover, the procurement of the services and consultants required by the OMT will be handled by UNDP through the RCO.A repository of all OMT and Working Group documents will also be maintained by the RCO for knowledge management and audit purposes.

CHAPTER 6: BUDGETARY FRAMEWORK

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BOS 2016-2020

6.1. Resource requirements, cost sharing arrangements and the budgetary framework

The United Nations Country Team (UNCT) in Ethiopia will spend an estimated US $............over the BOS2.0 cycle. Out of this US $..........................is available to support the implementation of BOS2.0. The remaining US $.....................will be mobilized during the implementation period from a variety of sources.

The details of financial resources per common service lines/pillars are provided in the table below.

Table: Resources by common service lines/pillars

Common service lines/pillars Overall budget Available resources Funding GapCommon ProcurementHuman ResourcesHACTFinanceBCM & ICTHCA/LegalTotal

The UNCT, under the leadership of the UN Resident Coordinator (RC) is collectively responsible for resource mobilization for the implementation of the BoS2.0.

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BOS 2016-2020

ANNEXES

Pages

Annex 1: Results of Stock Taking Analysis 67

Annex 2: Business Operation Strategy (BOS)Results framework 68

Annex 3: Terms of Reference for OMT and Task Team/Working Groups 69

Annex 4: Membership list of OMT and Task Teams/ Working Groups 84

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BOS 2016-2020

Annex 1: Results of Stock Taking Analysis

Table: Baseline Analysis

BASELINE ANALYSIS BY AGENCY EXISTING COMMO

N SERVICE

DATA Managing Entity

(Service Manager)

Clients(Agencies using the Services)

Modality(Outsourced/in-house)

ASSESSMENT / RECOMMENDED

ACTION

ADDITIONAL

COMMENTS

Total amount (USD) invoiced by the Supplier during 2014

# of Transactions

(# of Processes)

Travel Services 9,881,393 12,875 UNECA

UNECA, WFP, FAO, UNHCR, UNICEF, UNDP, UNWomen, UNCDF, UNOPS, UNOCHA, UNDP RSC, UNESCO, UNESCO IICBA, UNFPA CO, UNFPA LO, UNHCR AUECA, WHO, ILO, UNIDO, UNOAU

OUTSOURCED Expand the service

Drivers Uniform 261,837 13 WFP WFP, UNESCO, FAO, UNDP OUTSOURCED

Expand the service by including other supplier

Printing 1,273,761 225 UNICEF WHO, FAO, UNFPA CO, UNDP, UNWOMEN, WFP, UNICEF OUTSOURCED

Expand the service but include additional LTA

TOTAL 11,416,992 13,113

Table 1.1. Results of Stock take

Stock take of current serviceCommon Service Line(outcome)

Common Service(output)

Managing Entity(Service Manager)

Clients(Agencies using the Services)

Key Performance Indicators (KPIs) Indicator Baseline Target

Performance Ranking against KPIs

Green = target met Yellow = target not met

but on progress Red = target not met

and no progress

Modality(Outsourced/in-house)

Recommended Action Continue as

is Scale up Scale down Discontinue Modify

Common Procurement

The UNCT has improved the quality and cost effectiveness of its procurement activities

UNOPS WFP

UNECA, WFP, FAO, UNHCR, UNICEF, UNDP, UNWOMEN, UNCDF, UNOPS, UNOCHA, UNDP RSC, UNESCO, UNFPA CO, UNFPA LO, UNHCR AUECA, WHO, ILO, UNIDO, UNOAU

1. Estimated labor cost saving Baseline = $ 14,416,114 Target = $ 2, 423,640

In house Scale up

2. Estimated cost saving Baseline = $ 112,691,616 Target = $ 9,964,527

In house Scale up

3. No. of joint LTAs in place Baseline = 1 Target = 8

In house Scale up

4. Percentage of UN Staff satisfied with the quality of existing common services Baseline = 0 % Target = >70 %

HACT

The UN Agencies have improved working relations with IPs

UNICEF

UNICEF, UNDP, UNFPA, UNWOMEN, UNESCO,

1. No. of IPs included in joint assurance and capacity development framework Baseline = 0 Target = 250

In house Scale up

2. No. of IPs that received joint capacity development support on HACT modalities, monitoring and financial management Baseline = 0 Target = 100

In house Scale up

3. No. of jointly audited IPs Baseline = 0 Target = 250

In house Scale up

Business Continuity Management

The UNCT has strengthened organizational resilience and business

UNECAUNDSS

UNECA, UNDSS, OCHA, UNDP

1. Business continuity framework for the UN premises in Addis Ababa operationalized Baseline = No Target = Yes

Outsourced Scale up

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BOS 2016-2020

continuity service

2. No. of operational business continuity framework in place for the UN premises in the field Baseline = 0 Target = 3

Outsourced Scale up

Common Human Resources

The UNCT has enhanced its human resource management capacity to better address programme and staff needs UNICEF

UNHCR

1. Estimated labor cost saving through the use of Roster of consultants Baseline = $2, 123,200 Target = $988, 800

Outsourced Scale up

2. Technical note on harmonized R & R policies and procedures prepared, and shared with ICSC for endorsement Baseline = No Target = Yes

In house Scale up

3. Rates for local consultants harmonized Baseline = No Target = Yes

Outsourced Scale up

4. No. of field locations assessed for staff issues and challenges through visits and surveys Baseline = 0 Target = 3

In houseScale up

Information and Communication Technologies

The UNCT has reinforced the quality and cost effectiveness of its information and communication infrastructure

WHOUNECA

WHO, UNECA, WFP

1. The UNCT knowledge management platform launched and accessible by all UN Agencies Baseline = No Target = Yes

Outsourced Continue as is

2. The ICT Business Case on network consolidation is finalized and endorsed by the UNCT Baseline = No Target = Yes

Outsourced Continue as is

3. The percentage of 13 UN Agencies’ network uptime Baseline = 98 % Target = >99 %

HCA/Legal The UN Agencies and staff have strengthened privileges and immunities

OCHAUNECA

1. Technical and administration support provided to high level negotiations with government on host country agreement of UN Agencies Baseline = No Target = Yes

In house Scale up

2. No of regions that received information materials on the UN’s working methods and legal status (local language) Baseline = 0 Target = 3

Outsourced Scale up

3. No. of federal and regional government agencies that participated in the sensitization workshop on UN’s working methods and legal status Baseline = 0 Target = 12 regional & 4 federal agencies

In house Scale up

Support to the coordination of common operations

The UNCT’s capacity to coordinate inter-agency operations supported

UNECAUNDSS

UNDP, UNECA, UNDSS,

1. No. of staff who participated in a capacity development workshop on RBM of operations Baseline = 0 Target = 80

Outsourced Scale up

2. No. of staff who received capacity development support on International Public Sector Accounting Principles (IPSAS) Baseline = 0 Target = 40

Outsourced Scale up

3. No. of OMT annual reports prepared and shared with the UNCT Baseline = 0 Target = 2

Outsourced Scale up

Table1.3. Staff Pro Forma cost

STAFF PROFORMA COST

Grade Level Staff Cost–Annually (USD)

Staff Cost–Monthly (USD)

Staff Cost- Daily (USD)

Staff Cost–Hourly (USD)

Staff Cost per Minute (USD)

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BOS 2016-2020

D1/P6 301,081.83 25,090.15 1,153.57 153.81 2.56 D2/P7 323,907.22 26,992.27 1,241.02 165.47 2.76

P5 262,129.86 21,844.15 1,004.33 133.91 2.23 P4 227,257.86 18,938.16 870.72 116.10 1.93 P3 190,905.53 15,908.79 731.44 97.53 1.63 P2 169,037.46 14,086.46 647.65 86.35 1.44 P1 77,139.16 6,428.26 295.55 39.41 0.66

NOD 41,646.94 3,470.58 159.57 21.28 0.35 NOC 35,900.12 2,991.68 137.55 18.34 0.31 NOB 30,947.33 2,578.94 118.57 15.81 0.26 NOA 27,392.46 2,282.71 104.95 13.99 0.23 G7 30,190.24 2,515.85 115.67 15.42 0.26 G6 26,248.33 2,187.36 100.57 13.41 0.22 G5 22,628.77 1,885.73 86.70 11.56 0.19 G4 18,099.41 1,508.28 69.35 9.25 0.15 G3 14,371.86 1,197.66 55.06 7.34 0.12 G2 11,225.21 935.43 43.01 5.73 0.10 G1 8,698.72 724.89 33.33 4.44 0.07

Table 1.2. Categories of goods and services procured by UN agencies in 2014 in USD

NoProcurement Category

UNICEF UNECA WFP UNDP FAO IOM UNFPA UNESCO UNAIDS UNOPS WHO Total

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BOS 2016-2020

Value Value Value Value Value Value Value Value Value Value Value Value 1 IT Equipment

Computers, Printer and Toners and Technical

2214840 1570697 98931 102000 163305 141402 22387 3132 11667 2500 11629 4,342,490

2 Spare Parts including tyres

7223 5239 31000 10306 40207 28300 1334 6385 1800 115384 247,177

3 Stationery including Printing Paper

1843075 468795 40519 40000 39362 68504 10859 11824 7494 21226 2,551,658

4 Uniform / clothing 87204 179329 96954 12000 37936 25376 3108 1150 41091 484,1495 Electrical equipment 1707630 1081717 24554 13000 79449 40380 0 2,946,731

6 Office Equipment including Furniture

992591 442790 153899 56000 18311 119585 11642 0 5376 55000 3129 1,858,324

Catering Service 668998 25481 21513 715,992

7 Hotel and Conference Facilities

254180 45993 723863 526000 30949 189610 37929 38649 3747 332015 2,182,936

8 Communication and production (video)

446314 23000 259322 220000 35564 3272 12000 2013 1,001,486

9 Translations/ Interpretation

56816 65000 4884 17074 1859 5692 3220 154,545

10 Custom Clearance (Company)

216640 19166 89000 88379 14096 2498 429,779

11 Advertising Services 38224 255613 12332 15000 33140 9358 524 364,191

12 Generator & Electro Mechanical Services

141401 1871701 78775 444 35000 0 2,127,321

13 Maintenance (IT Equipment/ photocopier)

8210 108579 12927 9308 68 1198 14988 155,279

14 Vehicle Maintenance 295023 15000 387503 12000 70280 39628 14822 11492 6395 852,143

15 Insurance 691026 18000 522306 29000 420 44908 1121 500 29889 1,337,170

16 Postal and Currier Services including Cargo

2251 10000 12800 706 695 1249 27,702

17 Cleaning services (Company)

571301 222922 69000 47357 19320 2953 932,853

18 Temporary Driving Services (Company)

241173 27000 0 268,173

19 Messenger Services (Company)

60443 202385 15000 0 277,828

20 Security Guard Services 276117 977733 61000 56264 57680 0 3410 6160 1,438,36421 Transportation Rental

Tracks1252639 4128 40000 0 1,296,767

22 Transportation Rental Bus

21000 180000 0 245 201,245

23 Transportation Rental Car

1164612 4118 89427 62000 104170 200000 22708 6763 1738308 14918 3,407,025

24 Printing Services 89188 30000 95898 48000 2137 49000 49048 13169 17395 706807 1,100,642

25 Warehouse/ Storage Rental

274299 3424 420000 0 5396 703,118

Event management 75000 0 4867 79,867

26 Technical Consultancies and Training Services(includes:

4603073 913105 778603 820000 61027 125950 35087 7,336,844

17253971 7054826 5045465 2418000 648913 2226730 601601 268111 137047 1859431 1307702 38,821,798

Table 1.3.Categories of procurement by value and number of transaction (2014)

S. No. Procurement Category Total Number of Transaction Total value in USD

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BOS 2016-2020

1IT Equipment including Computers, Printer and Toners and Technical Support 275 4,342,490

2 Spare Parts including tires 31 247,1773 Stationery including Printing Paper 223 2,551,6584 Uniform / clothing 52 484,1495 Electrical equipment 74 2,946,7316 Office Equipment including Furniture 189 1,858,3247 Catering Service 14 715,991.838 Hotel and Conference Facilities 183 2,182,9369 Communication and production (video) 76 1,001,486

10 Translations/ Interpretation 51 154,54511 Custom Clearance (Company) 45 429,77912 Advertising Services 73 364,19113 Generator & Electro Mechanical Services 43 2,127,32114 Maintenance (IT Equipment/ photocopier) 24 155,27915 Vehicle Maintenance 158 852,14316 Insurance 41 1,337,17017 Postal and Currier Services including Cargo 39 27,70218 Cleaning services (Company) 95 932,85319 Temporary Driving Services (Company) 16 268,17320 Messenger Services (Company) 66 277,82821 Security Guard Services 81 1,438,36422 Transportation Rental Trucks 13 1,296,76723 Transportation Rental Bus 16 201,24524 Transportation Rental Car 96 3,407,02525 Printing Services 114 1,100,64226 Warehouse/ Storage Rental 38 703,11827 Event Management 7 79,866.85

28

Technical Consultancies and Training Services(includes: surveys,Microassessment,M&E,design of towns,inventorycounting,technical assistance towards HR and Finance,inspection services ) 111 7,336,844

Total 2,244 38,821,798.7

ANNEX 2: Business Operations Strategy (BOS) Result Frame work

1. Common service line/pillars-Common Procurement BOS2.0 Results Framework:

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BOS 2016-2020

Business Operations Strategy Outcome 1: Procurement

Common Procurement

Participating UN Agencies

UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, UNAIDs, UNDSS, UNESCO, UNHCR, UNOAU, UNODC, UNOHCHR, UNOPS

Coordination mechanism

Common Procurement Working Group

Budget

Out

com

e

By 2020, the UNCT/OMT has improved the quality and cost effectiveness of its procurement activities

Plan

ned

Out

put

Output 1.1:The UNCT/OMT has created common LTAs for agreed categories of goods and service

Output 1.2: The UNCT/OMT has provided joint capacity development trainings, workshops or seminars to the UN procurement staffs and suppliers/vendors

Output 1.3: The UNCT/OMT has developed a regional LTA database and make accessible for BOS countries in Eastern Africa

Activ

ities

1.1 Identify list of categories of goods and

services for inter-agency LTAs

Assign lead agency to the inter-agency LTAs and sign the LTAs on behalf of other Agencies

Upload active inter-agency LTAs on the Information Knowledge Management (IKM) plat form

Monitor the expiry date of LTAs on IKM

1.2

Organize workshop/seminar and training

1.3. Discuss with UNCT/OMT on establishing of

CPSU

Hire experts

Conduct a business seminar for local and regional vendor

Create regional LTA database

INDICATORS BASELINE (2014) TARGET 2020 RISKS AND ASSUMPTIONS

Output 1.1. No of additional joint LTAs in place 4 32 Assumptions

The suppliers or vendors have the capacity to sign the inter-agency LTAs and supply as per the agreement

Estimated cost saving from a target of 7% discount from additional joint LTAs

USD 0 USD 10,272,174 AssumptionsUN Agencies commit to use the inter-Agency LTAs

Estimated transaction cost avoided from use of additional joint LTAs

USD 0 USD 5,891,222

Output 1.2: Number of joint procurement trainings, workshops or seminars conducted

2 6Assumptions

UN Agencies are willing to send their staffs to the trainings, workshops or seminars organized% customers surveyed who are satisfied with the

quality of trainings, workshops or seminars provided

0% >95%

Output 1.3 Established a regional LTA database and make accessible to BOS countries in Eastern Africa

No Yes AssumptionsBOS countries in Eastern Africa fully cooperate to the process

No. of regional LTAs make accessible on the database

0 TBD

B. Common service line/pillars-Human Resources and premises BOS2.0 Results Framework:

Business Operations

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BOS 2016-2020

Strategy Outcome 2: Human Resource

Human Resource


UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA,FAO,IOM,UNAIDs, UNESCO, UNHCR, UNOCHA, UNOPS


Human Resource WG

Budget

Out

com

e

By 2020, the UNCT/OMT harmonized the human resource management and realized an efficiency gain in recruitment and training Pl

anne

d ou

tput

Output 2.1: The UNCT/OMT has realized an efficiency gain on transaction cost of USD 299,400 by conducting joint advertisement and recruitment of staff

Output 2.2: The UNCT/OMT has realized an efficiency gain on transaction cost of USD 1,029,600 by recruit local consultant from UN Roster of Consultant

Output 2.3: The UNCT/OMT has established the accountability framework to recognize and award individual showing outstanding achievement in the OMT/WG’s work

Output 2.4: The UNCT/OMT has realized cost reduction by developing joint learning programme

Output 2.5: The UNCT/OMT has created conducive environment for employment by harmonizing local consultancy rate and internship modality among UN Agencies

Activ

ities

2.1

Identify list of vacancy Conduct the recruitment jointly2.2.

Collect CVs of consultant Upload the CVs on IKM Update the CVs regularly

2.3.

Establish recognition and award framework

Identify list of candidates Select and get approval from

OMT

4.1. Identify list of training Identify the participants Select the venue Conduct the joint training

5.1. Collect data on local consultancy

rate, service contract and internship modality of Agencies

Identify the difference Harmonize

INDICATORS BASELINE 2014 TARGET 2020 RISKS AND ASSUMPTIONSOutput 2.1: Estimated transaction cost avoided by conducting joint advertisement and recruitment of staff

USD 0 USD 299,400AssumptionsUN Agencies’ internal policy and procedures support joint recruitment

Output 2.2: Estimated transaction cost avoided from the use of UN Roster of Local consultants

USD 0 USD 1,029,600AssumptionsAll UN Agencies recruit local consultant and support service staff using UN roster of consultant

The Roster of consultant is updated regularlyOutput 2.3: Established Accountability framework No YesOutput 2.4: Estimated cost saving from conducting joint learning programme

USD 0 USD 92,500AssumptionsMost trainings provided by UN Agencies’ are similar

Output 2.5. Harmonized local consultancy rate and internship modality among UN Agencies

No Yes AssumptionsUN Agencies internal policies and procedures support harmonizing of consultancy rate and internship modality

C. Common service line/pillar- Finance pillar BOS2.0 Results Framework:

Business Operations

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Strategy Outcome 3: Finance

Finance Working Group


UNDP, WFP, UNWOMEN,WHO, UNECA, UNFPA, UNHCR, UNAIDs, UNESCO, UNOPS, IOM


Finance Working Group

Budget

Out

com

e

By 2020, the UNCT/OMT has realized a cost saving by harmonizing its financial transaction

Plan

ned

Out

put

Output 3.1. The UNCT/OMT has made an agreement with bank and realized cost reduction and obtained quality service

Output 3.2: The UNCT/OMT has realized a cost saving by harmonizing foreign exchange dealing with banks

Output 3.3: The UNCT/OMT has conducted a common VAT reclaim and realized reduction in loss of revenue from uncollected VAT

Activ

ities

3.1.

Conduct banking survey Negotiate and make an agreement with

banks on behalf of other UN Agencies

3.2.

Analyze the Basic Cooperation Agreement of each UN Agency

Negotiate with the government on the revision of new directives of NBE through Host Country Agreement

3.3. Identify the loss in revenue of Agencies

from uncollected VAT

Collect VAT reclaim of different Agencies

Conduct joint VAT reclaim

INDICATOR BASELINE (2014)

TARGET 2020 RISKS AND ASSUMPTIONS

Output 3.1: Estimated cost saving from joint banking service USD 0 USD 94, 000

AssumptionsThe government bank, Commercial Bank of Ethiopia (CBE) in Ethiopia will give reduction in banking service

Output 3.2:Estimated amount of saving from harmonization of foreign exchange dealing

USD 0 USD 16 Million

AssumptionsThe National Bank of Ethiopia will revise the new directives on foreign exchange rate to UN Agencies

Output 3.3: Conducted a common VAT reclaim of UN Agencies on a yearly basis to the Revenue Authority

No YesAssumptionsThe suppliers/vendors keep the documents properly

D. Common service line/pillar-HACT BOS2.0 Results Framework:

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Business Operations Strategy Outcome 4: HACT

Harmonized Approach for Cash Transfer (HACT)


UNDP, UNICEF, WFP, UNWOMEN,UNESCO, UNFPA, UNAIDs, UNECA, UNHCR, UNOPS, WHO


HACT Working Group

Budget

Out

com

e

By 2020, the UNCT/OMT has realized all UN Agencies providing fund and their IPs become fully implementing HACT framework

Plan

ned

Out

put

Output 4.1:The UNCT/OMT conducted joint micro-assessment of shared IPs through a lead agency

Output 4.2:The UNCT/OMT has conducted joint scheduled audit of shared IPs

Output 4.3:The UNCT/OMT has provided joint capacity development trainings on HACT to IPs

Output 4.4:The UNCT/OMT developed a joint assurance plan for shared IPs

Output 4.5:The UNCT/OMT created a HACT database and upload IPs

Activ

ities

4.1. Identify IPs for joint micro-

assessment Assign a lead agency Conduct the joint micro-

assessment of shared IPs.4.2. Advertise to invite audit

firms select audit firm Sign a common LTA Select IPs for joint audit Conduct the joint audit4.3 Identify capacity

development activities on HACT

Conduct the training4.4. Develop a joint assurance

plan to shared IPs Identify IPs for joint spot

check Conduct spot check4.5. Develop a HACT database Upload full information

about IP on the HACT database

INDICATOR BASELINE 2014 TARGET 2020 RISKS AND ASSUMPTIONS

Output 4.1. Estimated cost saving from conducting joint micro-assessment of shared IPs

USD 0 USD 144,000Assumptions All UN agencies support the implementation of HACT

frameworkNumber of jointly micro-assessed shared IPs 0 24 Assumption

The IPs remain active during the entire period Full participation of UN agencies in the working group

Output 4.2. Estimated transaction cost avoided by conducting joint scheduled audit shared IPs

USD 0 USD 274,590AssumptionsUN Agencies inter policy and procedures permit joint scheduled auditNo threshold difference among UN agencies to conduct audit

Number of jointly audited IPs 0 24Output 4.3. Estimated cost saving from conducting joint capacity development programme

USD 0 USD 24,000AssumptionsThere is sufficient fund for capacity development programme

Output 4.4. Developed a joint assurance plan for shared IPs No YesNo. of joint spot check conducted 0 5 Assumptions

There is no difference in threshold of UN agencies Output 4.5: Developed a HACT database and update

No Yes Assumptions The HACT database is accessible to all UN agencies

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regularlyNumber of IPs uploaded on the HACT database TBD Assumptions

Agencies continuously upload IPs on the HACT database

E. Common service line/pillar: BCM & ICT pillar BOS2.0 Results Framework:

Business Operations Strategy Outcome 5:BCM & ICT WG

BCM & ICT WG


UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA


BCM & ICT Working Group

Out

com

e

By 2020, the UNCT has strengthened organizational resilience and business continuity services

Plan

ned

Out

put

Output 5.1: The UNCT/OMT has launched information and Knowledge Management (IKM) platform and make accessible to all UN agencies

Output 5.2: The UNCT/OMT has finalized and implemented a joint Business Continuity Management Framework

Output 5.3: The UNCT/OMT has a one UN network

Output 5.4: The UNCT/OMT has a one UN IT data center.

Output 5.5:The UNCT/OMT has established a common telephony service among UN Agencies

Output 5.6The UNCT/OMT has established a common internet services among UN Agencies

Activ

ities

5.1. Provide training on

IKM Make accessible to all

UN Agencies

5.2 Purchasing the

Business Continuity Plan software for all the UN organizations

Hire consultants for Business Continuity and Information Technology Disaster Recovery assessment

Prepare MoUs and sign on Business continuity to formalize alternate recovery site and concentration point

5.3. Purchasing of

equipment related top Office-in-a box to the alternate recovery site

INDICATOR BASELINE (2014) TARGET 2020 RISKS AND ASSUMPTIONS

Output 5.1:Established IKM platform and make accessible to UN Agencies

No YesAssumptionsThe Working Group continuously update the IKM

Output 5.2:Finalized and implemented joint Business Continuity Management Framework

No Yes AssumptionsThe UNCT members sign the MOU

No. of operational business continuity framework in place for the UN premises in the field

0 3

Output 5.3: One UN network established

No Yes AssumptionsUN Agencies’ internal ICT policy and procedure permit one UN networkOutput 5.4:

Established a one UN IT data center No YesOutput 5.5:

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Established a common Telephony services among UN Agencies

No Yes

Output 5.6.Established a common internet service among UN Agencies

No Yes

F. Common service line/pillar- Host Country Agreement/Legal pillar BOS2.0 Resulst Framework:

Business Operations Strategy Outcome 1: HCM/Legal WG

HCA/Legal WG


UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, IOM, ITU, UNAIDs, UNESCO, UNHCR, UNOHCHR, UNOPS, WFP


HCA/ Legal Working Group

Budget

Out

com

e By 2020, the UNCT/OMT has finalized the Host Country Agreement and protect the immunities and privileges of UN Agencies and their staffs

Plan

ned

Out

put

Output 6.1.The UNCT/OMT has provided sensitization on immunities and privileges of UN agencies and their staffs

Output 6.2: The OMT has prepared Supplemental Agreements to UN Agencies

Output 6.3: The OMT has provided regular briefing to UN Staff on their privileges, immunities and obligations

Output 6.4: The OMT has supported the UNCT in the negotiations with the banks to obtain suitable banking service

Activ

ities

1. Prepare sensitization document

2. Organize and conduct pilot sensitization sessions for the government agencies

3. Support the management with finalizing the proposed draft supplemental agreement

INDICATOR BASELINE 2014 TARGET 2020 RISKS AND ASSUMPTIONS

Output 5.1:Number of sensitization trainings provided on immunities and privileges

5 7 AssumptionsGovernment Agencies are willing to send their representative in the training sessions

Output 5.2:Finalized supplemental agreement prepared by UN Agencies

No Yes AssumptionsUN Agencies harmonize their policies and procedures

Output 5.3:Organized regular briefing session to UN Staffs on a yearly basis

No Yes

Output 6.4:Provided support to the UNCT in the negotiation to obtain suitable banking service

No YesAssumptionsThe National Bank of Ethiopia revise the new directive as per the request of UNCT

Annex 3: Terms of Reference for OMT and Working Groups

UNITED NATIONS COUNTRY TEAM IN ETHIOPIA

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Terms of ReferenceOperations Management Team (OMT)

This Terms of Reference (ToR) outlines the purpose, mandate, membership structure and working methods of the Operations Management Team (OMT), particularly within the context of Delivering as One (DaO).

1. Purpose and Functions

Under supervision of the UN Country team, the Operations Management Team (OMT) brings together UN organizations, specialized agencies, funds and programmes in Ethiopia4. The OMT provides leadership on the implementation of a coordinated, efficient and effective common operational support agenda at the country level. The aim of the common operations agenda at country level is to ensure programme delivery is supported in an as effective and efficient possible way, ensuring high quality, timely operational support to participating agencies. The means to achieve this is through a joint, common approach for a select range of operational support service where there is a clear business case to provide services as a group of agencies, rather than providing these services as individual agencies. This means that there is a clear, demonstrable benefit in terms of cost reduction or quality of services, realized by engaging jointly in the development and management of the identified services.

Common Operations is defined as a predefined range of common operational services and common premises related services.

2. Responsibilities

As an accountable entity to the UN Country Team, the OMT is responsible for identification, assessment, prioritization and planning for common operations in support of programme delivery. More specifically the OMT coordinates joint activities in the following areas of operations:

Joint strategic planning: Business Operations Strategy (BOS) and Annual Work Planning; Common Business Continuity Management (BCM)and Information and Communication Technologies (ICT); Common Finance: Common Harmonize Approached to Cash Transfers (HACT); Common Host County Agreement (HCA) / Legal; Common Human Resources Common Procurement;

Specific OMT responsibilities include;

Planning and Strategy

Develop theBOSworking with the Inter-Agency Programming Team (IAPT)/ Programme Management Team (PMT) to identify programmatic needs in line with the UN Development Assistance Framework (UNDAF)/One Programmecycleincluding approval by the UN Country Team of the BOS;

Ensure BOS responds to programmatic needs set by UNDAF, translate BOS into annual work plans for monitoring and implementation, formulate the proposed common services budget and address implementation challenges through innovative inter-agency support,

Annual work planning for common operations; As part of the BOS, preparation of Baseline and Cost-Benefit Analysis for the establishment of a new common

service or the enhancement of an existing common service. Monitor and evaluate existing common services and identify areas where these services can be improved and

costs reduced. In accordance with international best practices, provide the UN Country Team with guidance on harmonization

and simplification of agency rules, regulations and operations activities, while promoting openness and transparency,

Implement planned common services and other relevant activities with a lead agency spearheading each activity and ensuring that the necessary procurement and other contractual arrangements are in place.

Management and Oversight

4 Hereafter, the term “UN organizations” will be used in this document to refer to the UN organizations, funds, programmes and specialized agencies.

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Implementation of common services plans including resource mobilization in support of common operations where needed;

Management of common operations solutions, e.g. common services; Management the OMT budgets at the country level, including the development of the annual budget and

ensuring agreement is reached on the budget; Oversight of OMT Technical Working Groups (TWGs) working on initiatives under the OMT; Providing support to other interagency platform, in particular in the area of programmes, with the objective of

ensuring optimal use of available resources.

Quality Assurance and Client Management Quality Assurance and client management: Review the quality and cost effectiveness of each of the common

services with the client agencies and identify new demand for services and areas for improvement of existing services where needed;

Ensure that UN organizations benefit from the economies of scale offered by common services and that the quality of common services equals or improves or at least be the same as existent.

Reporting

Annual reporting to the UN Country Team on expenditures from Common Service account based on the annual work plan and in line with the approved annual budget;

Reporting to the UNDG (through IMS) and UN Country Team on results vis-à-vis the BOS and Annual Work Plan.

Governance:

The OMT reports to the UN Country Team and is responsible for the monitoring, evaluation and reporting on the progress of implementation for each of the work streams under the BOS and the Annual Work Plan to the UNCT and UNDG;

The OMT TWGs are responsible for regular (usually monthly) reviews of progress of the BOS implementation using the results matrices and M&E matrices. Note that, BOS implementations can be narrowed down into annual work plan and the progress of implementation of the annual work plan of each Working Group should be reported on the monthly basis;

OMT members are expected to abide by the UN staff rules and regulations, and demonstrate a professional and committed attitude at all times. Accordingly, members are urged to maintain a “One UN” approach and respect others’ contributions.

3. UN Country Team

The UN Country Team holds the ultimate decision power for all matters related to Common Operations; The UN Country Team is ultimately responsible for the achievement and reporting on results reflected in the

results matrix of the BOS and the BOS Annual Work Plan; The UN County Team outlines the long and medium term vision for Business Operations and provides

guidance to the OMT with regards to the operationalization of that vision in the BOS; In case of disagreement within the OMT, UN Country Team serves as the final platform for escalation.

4. Operations Management Team (OMT)

The OMT manages and coordinates the development and implementation of the BOS; The OMT Provides oversight over the implementation of existing Business Operations Harmonization

initiatives (including Common Services) by the Service provider, with the aim to ensure service delivery is in line with the agreed Key Performance Indicators;

The OMT develops annual work plans, based on the BOS, which guide the OMT activities and financial needs for that particular year;

The OMT operates on the basis of the results matrices for Business Operations as reflected in the BOS and an integrated annual work plan guiding the different OMT activities.

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The OMT Chair reports on a regular basis to the UN County Team on progress and issues regarding the implementation of the activities supporting each of operations outcomes. Progress updates are based on the indicators and targets as reflected in the BOS M&E framework;

The Annual Work Plan of the OMT must have clear links to the BOS, and each Annual Work Plan progressively contributes to the achievement of the targets articulated in the BOS.

The OMT has different Technical Working Groups working on specific Business Operations Harmonization initiatives (including Common Services). The Technical Working Groups are on BCM & ICT, Finance, HACT, HCA/ Legal and Procurement, etc.;

The OMT has developed M&E tool in the Information Knowledge Management (IKM) platform to assess the savings on implementing the BOS;

The OMT has a dedicated M&E focal point that is responsible for the M&E activities for each of common series;

It is recommended the OMT is chaired by a Head of Agency/ senior operations management level with the co-chair being at the operations management level of an agency other than the agency of the chair.The OMT shall nominate a Chairperson and two Co-Chairpersons for the year at each OMT Retreat.

The OMT Chairpersons shall provide leadership and guidance in the fields of common services and common premises, and other relevant operations issues to ensure sufficient, high-quality, cost-effective and timely support to UN’s programmatic activities.

More specifically, the OMT Chairperson shall be tasked with the following:

Take the lead in organizing, moderating and following up on OMT meetings, Ensure that the OMT drafts and implements a comprehensive, results-based and measurable Business

Operations Strategy (BOS) and monitoring framework, and an associated annual work plan and budget, Facilitate creation of new common services, and proper monitoring and strengthening of existing common

business operations, and Attend UNCT meetings to report progress achieved, implementation challenges, decisions taken, and

proposed plans and activities.

To support the OMT Chairperson in coordinating the work of the OMT, there shall be two OMT Co-Chairpersons, who will assume the following duties and responsibilities. Each of these should be clearly assigned to an OMT Co-Chairperson, and work should be divided between two Co-Chairpersons equally at the beginning of their term.

Taking the lead in strategic planning activities including drafting and monitoring of the Business Operations Strategy (BoS), annual work plans and budgets.

Taking the lead in reporting activities. Helping OMT Chairperson with coordination of OMT meetings and daily activities, including taking the lead in

preparation of relevant documents, presentations and meeting minutes.

Moreover, the duty of coordinating with each OMT Working Group shall be assigned to an OMT Co-Chairperson at the beginning of their term. This will include reporting to OMT on OMT Working Group meetings and activities in collaboration with OMT Working Group Chairpersons, and overseeing the work of lead agencies to ensure the completion of the annual work plan outcomes assigned to the Working Group.

OMT Co-Chairpersons and/or other OMT members shall be appointed by the OMT based on expertise to represent OMT atthe DaOWorking Groups including Inter-Agency Programming Team (IAPT)/ Programme Management Team (PMT), UN Communications Group (UNCG) and Monitoring and Evaluation Working Group (M&E WG), etc. These individuals will be responsible for attending the monthly meetings of these groups to discuss programme needs, support provided through common services, relevant OMT activities and work plans, and report back to the OMT on progress achieved, implementation challenges, decisions taken, and proposed plans and activities.

5. OMT Working Groups

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The OMT has different Technical Working Groups working on specific Business Operations Harmonization initiatives (including Common Services). The Technical Working Groups are on BCM & ICT, Common Procurement, Finance, HACT, HCA/ Legal and Human Resources.

At the beginning of each year, the OMT shall set up Working Groups to accomplish all the activities and tasks in order to implement its work plan. Therefore, these working groups will represent the priorities set in the annual work plan.

Each working group shall be led by a Chairperson, responsible for planning and coordinating activities assigned to that priority area of the work plan, and at least a Co-Chairperson, mainly tasked with organizing meetings at least 9 times a year, preferably on monthly basis within the premises of a member organizations, and reporting to the OMT Chairpersons in the form of monthly status reports and meeting notes.

Primary and alternate OMT members of agencies shall ensure the membership of relevant managers and technical experts of agencies such as procurement, human resources and ICT officers to OMT Working Groups, ensuring that each outcome, output and activity assigned to each working group is led by a relevant and competent working group as well as agency. Accordingly, lead agencies shall work to coordinate and implement assigned tasks using the resources allocated by the budget.

The OMT may decide to hire technical experts as consultants to help with implementation of relevant activities. The tasks and responsibilities assigned to each consultant should be detailed in the respective Terms of Reference.6. Frequency of meetings:

The OMT shall meet at least 9 times a year, preferably on monthly basis in a designated location but special meetings may be convened if necessary by the OMT Chairpersons to ensure timely reporting to the UN County Team, it is recommended that the meetings are held on the third Wednesday of the month. The OMT-member agencies shall take turns in hosting the OMT meetings

A quorum is reached with the attendance of more than half of the members (currently it is 11 members based on 22 UN organizations representations in the OMT).

An annual OMT Retreat shall be held at the beginning of each year to review progress and challenges and finalize the work plan and budget for the year. These work plans and budgets will be submitted to UN County Team for endorsement.

A review of the OMT activities will be presented to the UN Country Team and UNDG at the end of each year. Reporting to the UNDG usually happens by the UN Country Team and the OMT through the RCO when they submit the UN Country team work plan on behalf of the UN Country Team through IMS (UNDG Information Management System).

The draft agenda for each meeting shall be circulated with relevant background documents to the OMT before the meeting. OMT members are requested to review the agenda and suggest any additional topic they would like to discuss at the meeting. A standard meeting agenda usually includes the following item:

o Review of the minutes of last meeting and related follow-up actions;o Review of the work plan and progress made;o Identification of the recommendations and requests for of the UN Country Team;o Any other business.

To ensure easy and efficient correspondence, an OMT e-mail distribution list is maintained ([email protected]), including all primary and alternate OMT members as well as RCO. Any adjustments to this e-mail list shall only be authorized by the OMT Chairpersons and RCO. Issues requiring an urgent OMT decision and/or endorsement may also be discussed and concluded over the e-mail list.

7. Minutes and Secretariat:

The secretariat of the OMT is either the Resident Coordinator’s Office (RCO) or a staff member from the agency that provides the OMT Chair. The meeting minutes of each OMT Working Group meeting will be taken by the OMT Working Group members on the rotating basis. RCO will provide the support to circulate the meeting minutes among the respective OMT Working Group and the OMT.

To ensure that the items discussed at meetings are properly reported, the minutes will be circulated to the OMT members for comments/corrections no later than one week after the meeting, before being finalized and shared with the UN Country Team.

For ease of reporting, a meeting minutes template should be used, which includes:

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All the matters/paragraphs discussed presented by item; Clear indication of actions to be taken and those responsible for taking them; The deadline for the execution of each task for all the actions.

The OMT secretariat should share the electronic version of the minutes to the UN Country Team.

It is highly recommended that the UN Country Team meeting agenda includes a standing item on common operations to ensure the UN County Team remains informed and can provide support to the OMT while pursuing the BOS targets. Usually the Chair of the OMT is invited to provide the update to the UN County Team.

It is highly recommended that the performance appraisal of the staff member involved in any of the above platforms reflects their role and results to be achieved, as this plays a critical role in terms of incentive and accountability.

8. Membership and Chairmanship

The OMT shall nominate a Chairperson and two Co-Chairpersons for the year at each OMT Retreat. These nominations are subjected to the review and approval of the UNCT. These positions shall be held for a year on a rotational basis.

OMT is an inclusive forum and founded on the principles of commitment and active participation. It shall be composed of the senior operations managers and administrative officers of UN organizations, agencies, programmes and funds in Ethiopia. Each participating UN agencies is requested to designate a primary and an alternate member to ensure that their organization is represented at all times in OMT meetings.

All OMT members, primary or alternate, must hold fixed-term contracts and have work for their respective agencies at least for a year, preferably in Ethiopia. Attendance of other UN staff to meetings on ad-hoc basis shall be communicated in advance to the OMT Chairpersons, and may require the OMT approval.

Each UN Organizations must ensure that they nominate a member and alternate to the OMT. Based on number of UN personal, programmes and projects in the country, each UN agency may determine which OMT Technical Working Group that they would like to represent. However, it is expected all the UN organizations in the country nominate a member and alternate to the OMT regardless of number of UN personal, programmes and projects in the country.

The UN County Team in Ethiopia adopted the Accountability Framework and Reward Framework on 7 April 2015 and accordingly, the nominations to the OMT and OMT Working Groups should come from each Head of Agency (HaA).

It is recommended the OMT is chaired by a Head of Agency/ senior operations management level with the co-chair being at the operations management level of an agency other than the agency of the chair.

The OMT Chair can rotate every year, upon proposal of any OMT member and decision of the UN County Team. The OMT Chairmanship shall be linked to an agency rather than to individuals.

The OMT may constitute temporary Technical Working Groups to undertake specified task(s). Membership will be decided based on competency and added value.

If relevant, a coordinating agency or Chairperson of a Working Group shall be selected from within OMT membership on the basis of knowledge/expertise or agency strength in the particular field.

9. Confidentiality

Most discussions and reports are in the public domain and therefore can be shared openly. However, members are required to uphold the confidentiality of sensitive information when it is explicitly classified as such.

10. Reporting and Documentation

The RCO should be the repository for all OMT files, in which all documentation deemed necessary for audit purposes should be kept. Managing Agencies should submit relevant documentation to RCO on their responsible areas. The Chair of each Technical Working Group is responsible for keeping the detailed file for the Technical Working Group activity and sending copies of all relevant documents to RCO for the official record. Additionally, the Chair of the Technical Working Group will make available any documentation to any requesting agency. For convenience and transparency, all relevant files shall be placed on the inter-agency online knowledge management platform (http://ikm.et.one.un.org/).

Whenever it convenes, the OMT shall maintain official minutes of the meetings including discussions on key issues leading to decisions and action points. An OMT Co-Chairperson shall be responsible for ensuring that draft OMT

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meeting minutes are prepared and circulated for comments in a timely manner after each meeting. Based on the comments provided by the OMT, meeting minutes shall be finalized and submitted to UN County Team. RCO will provide administrative and secretariat support to the OMT.

Meeting minutes shall specifically spell out decisions taken and action points assigned at each meeting, including a clear timeline and focal point (agency) for each.

RCO shall take the lead in addressing UN corporate reporting requirements, such as RC’s Annual Report and donor reports, in consultation with OMT Chairpersons.

An Annual OMT report shall be prepared at the end of the year, summarizing accomplishments, implementation challenges, activities, pending issues, lessons learned, best practices and strategic plans on common services.

11. OMT Work Planning

At the end of each year, the OMT shall draft a detailed work plan for the upcoming year, outlining specific priority areas, proposed working groups, outcomes, outputs, activities, and lead agencies, indicators, baselines and targets for each activity. For planning purposes, this work plan shall also be broken down into a budget and quarterly list of planned major activities. An OMT Co-Chairperson shall take the lead in coordinating this effort, together with the OMT Working Groups. After finalized by the OMT, the draft OMT work plan, budget and activity list will be submitted to RCO for UN Country Team review, approval and consideration for funding.

OMT annual work plans must reflect and plan to achieve priorities, outcomes and outputs outlined in the results-based BOS. At the end of each year, progress towards the BOS shall be reviewed by the OMT. Three months before the end of each BOS cycle, an OMT Co-Chairperson shall take the lead in coordinating the effort to draft a new BOS.

12. Decision Making

Consensus is the preferred method of making decisions in the OMT. However, in the event that this cannot be achieved, the OMT Chairpersons may put an issue to vote, for which simple majority is required. During voting, even if there are more than one staff member representing an agency, each represented UN agency shall have only a single vote. Issues that cannot be resolved by the OMT shall be referred to the Resident Coordinator (RC).13. Resources

In order to fulfil its duties and responsibilities, the OMT shall approach UN County Team through RCO for the allocation of required resources and funding. These include meeting space, equipment, consultancy services and technical expertise required. In accordance with DaO, the OMT budget shall be a part of the RC’s budget, and may be covered by core funding and/or agency cost-share. Work plan activities that are only applicable to certain agencies shall be settled separately by participating agencies. As the administrative agent, UNDP will be requested through the RCO to process payments and procure consultancy services, as required.

Annex 4: Membership list of OMT and task teams A. Harmonized Approach to Cash Transfer /HACT/WG B. Host Country Agreement/ Legal WG

Working Group Agency Representative Working Group Agency Representative

Co-Chair UNDP Ms. Yodit Gebre Tensae Chair UNECA Ms Sandra Baffoe-BonnieMember ILO Ms Yasebework Wondimagegnehu Co-Chair IOM Ms. Meron TesfuAlternate ILO Ms Tigist Sahleselassie Member FAO Mr. Afework GebreEyesus Member ITU Mr. Dawit Beyene Member ILO Ms Yasebework

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WondimagegnehuMember UNAIDS Mr. Wossenu Aberra Alternate ILO Ms. Tigist SahleselassieAlternate UNAIDS Ms. Addis Tibebe Alternate IOM Mr. Jian ZhaoMember UNESCO Mrs. Ophelia Stephenson-Odle Alternate UNECA Mr. Amboko WameyoMember UNFPA Ms. Beleyou Teferra Member ITU Ms. Ida Jallow Alternate UNFPA Mr. Behailu Gebremedhin Member ITU Mr. Dawit BeyeneMember UNICEF Mr. Yidnek Tilahun Member ITU Ms. Meron KidaneAlternate UNICEF Mr. Henok Yohanes Member UNAIDS Mr. Wossenu AberraMember UNECA Mr. Marlone Lezama Alternate UNAIDS Ms. Addis TibebeAlternate UNECA Mr.Hemant Sunth Member UNDP Mr. Janvier Wussinu Member UNOPS Mr. Gurel Gurkan Alternate UNDP Mr. Taye AmssaluMember UN WOMEN Ms. Biniam Aklilu Member UNFPA Mr. Paul MakwinjaMember WFP Mr. Yoseph Sulito Member UNFPA Ms. Beleyou TeferraAlternate WFP Ms. Fikir Fasika. Member UNICEF Mr. Alaa Al-AlamiMember WHO Mr. Tesfaye Damte Alternate UNHCR Mr. Gilbert MutaiAlternate WHO Mr. Kidanemariam Hintsa Alternate UNHCR Dr.Mamadou Dian BaldeMember UNHCR Mr. Reuel Christopher Nettey Member UNESO Mrs. Ophelia Stephenson-

Odle Alternate UNHCR Mr. Jose Barrena Member UNDSS Mr. Marco Smoliner

Member UNOHCHR Mr. Kinetibeb AregaMember UNOPS Mr. Gurel GurkanAlternate UNOPS Ms. Basazinew Terefe Member UNWOMEN Ms. Sliper PesaMember WFP Ms. Blessing EzeibeMember WFP Mr. Kidist MammoMember WHO Mr. Pierre Claver Lessimi

C. BCM & ICT Working Group

Working Group Agency Representative Working Group Agency Representative Chair UNECA Mr. Ahmed Al-Awah Member UNICEF Mr. Yogendra RaiCo-Chair UNOAU Mr. Ildephonse Ikitegetse Alternate UNICEF Mr. Daniel WondimuMember ITU Mr. Emmanuel Kamdem Member UNOAU Mr. Kilmore Madzivadondo Member UNDSS Mr. Nebiyu Afework Focal Point UNOPS Mr. Gurel GurkanAlternate UNDSS Mr. Adane Genetu Member UNOPS Mr. Henok BekeleMember UNDP Mr. Taye Amssalu Member UNWOMEN Mr. Abraham Gebremeskel

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BOS 2016-2020

Member UNDP Ms. Rahel Wubshet Member WFP Ms. Merethe IhmeAlternate UNDP Mr. Tewodros Ayele Member WFP Mr. Lionel MarreMember UNFPA Mr. Paul Makwinja Alternate WFP Mr. Ryan PittockMember UNFPA Mr. Amha Araya Alternate UNFPA Ms. Belyou Teferra D. Finance Working GroupAlternate UNFPA Mr. Abraham GelawMember ILO Ms Yasebework

WondimagegnehuWorking Group Agency Representative

Alternate ILO Mr. Ermias Ashagrie Chair UNDP Mr. Endrias GetachewMember IOM Mr. Gebriel OKutoi Co-Chair UNHCR Ms. Aleka EwinyuMember IOM Ms. Belyou Guirbo Alternate IOM Mr. Anteneh HailuAlternate

IOM Mr. Tilaye Teshome Member ILO Ms. Yasebework Wondimagegnehu

Member UNAIDS Mr. Wossenu Abera Alternate ILO Ms. Tigist SahleselassieMember UNAIDS Mr. Daniel Asrat Member UNAIDS Mr. Wossenu AberaAlternate UNAIDS Ms. Addis Tibebe Alternate UNAIDS Ms. Addis TibebeMember WHO Mr. Pierre Claver Lessimi Member UNECA Ms. Halima AbukarMember WHO Ms. Mihret Abeselom Alternate UNECA Mr. Messkir LemmaAlternate WHO Mr. Tesfaye Damte Alternate UNESCO Mr. Adankegn MekonnenAlternate WHO Mr. Ayenachew Zewde Member UNFPA Mr. Yonas TadeleMember FAO Mr. Afework Gebreyesus Alternate UNFPA Mr. Million MelakuAlternate FAO Ms. Genet Tesfaye Alternate UNHCR Mr. Gilbert MutaiMember UNHCC Dr. Grace Fombad Member UNOPS Ms. Abenezer TerunehMember UNHCR Ms. Hiwot Alemu Member UNWOMEN Ms. Meseret HabteMember UNHCR Mr. Issac Howrad Alternate UNWOMEN Mr. Biniam AkliluAlternate UNHCR Mr. Gilbert Mutai Member WFP Mr. Yoseph SulitoAlternate UNHCR Mr. Zewdie HaileSelassie Alternate WFP Mr. Ryan PittockMember UNECA Ms. Zebib Tekle Member WHO Mr. Tesfaye DamteAlternate UNECA Mr. Jean Paul Gondje Alternate WHO Mr. Kidanemariam HintsaAlternate UNECA Mr. Mohammed YunusMember UNESCO Mr. Ashagrie BefekaduMember UNESCO Mrs. Ophelia Stephenson-

OdleAlternate UNESCO Mr. Henok Workye

E. Common Procurement Working Group F. Human Resources and Common Premises

Working Group Agency Representative Working Group Agency Representative

Chair UNOPS Mr. Gurel Gurkan Chair UNDP Mr. Bekele Nigatu

Co-Chair UNDP Mr. Assefa Gebrehiwot Co-Chair WFP Ms. Virginie Seznec

Member FAO Mr. William Manuel Member FAO Ms. Claudia Broderick

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BOS 2016-2020

Member FAO Mr. Zewdu Fantu Alternate FAO Ms. Amrot Tadesse Member IOM Mr. Gebrehiwot Tesfaye Member IOM Ms. Frehiwot WebeshetMember IFAD Mr. Abebe Zerihun Alternate IOM Mr. David MavengereMember ILO Ms. Rahel Girma Member UNOCHA Ms. Sara Mengistu

Member ILO Ms. Yasebework Wondimagegnehu ng Group

Agency

AlternateUNESCO Mr. Mekdes Tadesse

Member UNAIDS Ms. Addis Tibebe Member UNECA Ms. Sajiv NairAlternate UNAIDS Ms. Sebleselassie Getachew Alternate UNECA Ms. Hirut AsratMember UNOPS Mr. David Mulbah Member UNFPA Ms. Selam GetachewMember UNECA Ms. Ali Assad Alternate UNFPA Mr. Yonas Tadele Alternate UNECA Mr. Yonas Woldesemayat Member UNICEF Ms. Mahlet AbrahamAlternate UNECA Ms. Priscillah Kaara Alternate UNICEF Mr. Stanley Kilel Alternate UNECA Mr. Leikun Tewabe Member UNOPS Mr. Hibret Asegid

AMTATAW Member UNFPA Mr. Ermias Wosenyeleh Alternate UNOPS Ms. Mapula ThemaMember UNFPA Mr. Daniel Regassa Member UNWOMEN Ms. Meron GetachewMember UNICEF Mr. Srikanth Srinivasan Alternate UNWOMEN Ms. Tsegereda LemmaMember UNWOMEN Ms. Meron Getachew Member WHO Ms. Tesfaye BerhanuAlternate UN WOMEN Ms. Yodit Hailemichael Alternate WHO Ms. Kalkidan ZewdeMember WFP Ms. Assumpta Samkange Member UNHCR Ms. Stella MurunngiAlternate WFP Mr. Molla Sharew Alternate UNHCR Mr. Gilbert MutaiMember WHO Ms. Lishan Negussie Member ILO Ms. Blen Admassu

Alternate WHO Ms. Fasika Mesfin Alternate ILO Ms. Yasebework Wondimagegnehu

Member UNHCR Mr. Pamphile Barampana Member UNAIDS Mr. Wossenu Abera

Alternate UNHCR Mr. Srdja Marotic Alternate UNAIDS Ms. Sebleselassie Getachew

Member UNESCO Mr. Fanuel Tesfaye

Alternate UNESCO Mr. Abebe Demie

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