UNDP SUDAN

1
UNDP SUDAN

• Sudan Common Humanitarian Fund Administrative
  Agent
• Progress Review 2006

2
Common Humanitarian Fund

• Framework
• Donor Pooled Funding Mechanism for Humanitarian
  Activities in the Work Plan
• HC Manages CHF With Decentralized Allocation
  Process
• OCHA Manages Allocation Process
• UNDP Manages Disbursement Process
• Funding Provided to NGOs and UN
• Advisory Board of Participating and Key Donors

3
Entry into force of CHF
4
SIMPLIFIED CASH-FLOW ENGINE 2006
Donors
Common Humanitarian Fund
ALL. LETTER
HC
COMMON FUND
ADMINISTRATIVE AGENT (UNDP)

• ALLOCATION PROCESS
• ME
• REPORTING

UN PARTICIPATING ORGANIZATIONS
not covered by the diagram
UNDP
IOM NGOs
5
Donor Legal Commitment
6
Consistency warning

• Step-by-step legal basis
• Memorandum of Understanding (MoU) between OCHA,
  UNDP, Participating UN Organizations on the
  operational aspects of the CHF with annex blank
  Letter of Agreement Donor / UNDP ToR of the
  Fund
• Letter of Agreement Donor / UNDP AA (Annex signed
  MoU)
• RISK TO SIGN WITH NO MOU IN PLACE

7
Effort 2006
Donors
8
Response CHF 2006
HC
9
Response CHF 2006
HC
10
Response CHF 2006
HC
11
FUND MANAGEMENT UNIT

• In December 2006 a Fund Management Unit is
  established within the Country Office Operations
  taking over from the Trust Fund Management Unit
  operating since Mid-2005.

Operations much more than DSA and General
Administrative or Logistic issues
Service provider for large scale Programmes, UN,
Donors/Government
12
Key Functions of the Sudan Fund Management Unit

• Management of the Operational Support to the
  Common Humanitarian Fund 2006 and 2007 including
  Emergency Response Fund 2007
• Support to the operational aspect of fund
  management of the Recovery and Rehabilitation
  Programme, Khartoum and Juba Central Emergency
  Response Fund South Sudan in coordination with
  OCHA
• Support and management of Administrative Agent
  functions of Multi Donor Trust Funds Joint
  Programming initiatives, Khartoum and Juba.

13
pipeline
Fund Management Unit
DCD P
DCD O
NEW
HC Office
CERF NGO Mgt 2007 Coordination with HC office
Juba Sector leaders ME OCHA Unit Juba NGOs
contracting NGOs quarterly Financial analysis Di
sbursement of funds, liaise With HQ
Treasury Consolidation of NGO portfolio Reportin
g Project Closure Juba
MDTF S.C. N/S
RRP Programme Financial Support Provides
centralized Programme Financial Support to the 10
NGO execution Projects. Training of NGOs and
National Counterparts. Disbursement of funds
and Liaise with HQ Treasury. Quarterly
reports. Monitor Programme Budget Audit Khartou
m Juba
CHF NGO Mgt 2006/2007 Coordination with HC
office Kht Juba AG, Sector leaders RC ME
OCHA Unit Kht Juba CSO capacity
assessment Capacity building NGO grant mgt NGOs
contracting NGOs quarterly Financial analysis Di
sbursement of funds, liaise With HQ
Treasury Consolidation of NGO portfolio Reportin
g Project Closure Khartoum Juba
MDTF Admin. Agent Provides Operational
Support to the S. Committee Khartoum
and Juba. Monthly financial / 6 monthly
narrative fin. reports. Reporting guidance to
UN Timely disbursement of funds Liaise with HQ
Treasury. Operational support to UN A. Donor /
Govt relation Khartoum Juba
ERF
NEW
14
Administrative Agent Support
15
Administrative Agent Support

• despite the note that the eligibility of
  withdrawal of the 1 fees is immediate after the
  record of the income, the AA charged its fee only
  after the execution of bulk-transfers related to
  a specific set of allocations.
• For IOM and NGOs UNDP is not receiving the full
  allocated amount all at once. The funds are
  transferred from the AA based on quarterly cash
  need forecasts, at the request of the UNDP Fund
  Management Units section liaising with NGOs and
  IOM.
• The result of the above has created a high level
  of trust in the UNDP CO capacity to play the dual
  role of AA and participating UN Organization, and
  the benefit for the funds could be summarized as
  such
• reduction of number of transactions to the fund
  due to the administrative fee
• risk reduction of unnecessary unspent balance at
  the disposal of UNDP for IOM and NGOs
• higher cash balance in the fund, enabling the HC
  office to better respond to immediate
  humanitarian needs while awaiting deposits of
  donors commitments.
• reduced risk of returning resources to the fund
  because of incomplete absorption of the
  allocation plan by IOM and NGOs.

16
Implementation Period CHF 2006
17
UN PARTICIPATING ORGANIZATIONS FINANCIAL
REPORT CHF 2006
UN PARTICIPATING ORGANIZATIONS

• The overall note on how UN agencies responded to
  the reporting requirements of the CHF needs
  careful assessment, as it sometimes shows
  evidence of insufficient preparedness.
• The main overall finding is that not all agencies
  were actually prepared to report in line with MOU
  requirements, especially about the status of
  commitments signed by end of December 2006 based
  on their available budget.
• With the extension of the implementation period
  granted by the HC, most of the agencies thought
  that the reporting of WP 2006 activities would
  also be postponed.
• This misunderstanding has been clarified by the
  AA, which through the HC office has kept
  reminding and at the same time helping all sister
  agencies to report on 2006 activities.

18
UN PARTICIPATING ORGANIZATIONS FINANCIAL
REPORT CHF 2006
UN PARTICIPATING ORGANIZATIONS
19
Administrative Agent Support

• Funds programmed by the HC USD 165,158,223.56
• Funds flow granted by the AA to participating UN
  agencies USD 153,431,151.00 of which USD
  21,888,422.00 were requested by UNDP in its
  oversight function towards IOM and NGOs.
• Participating UN Organizations responded to the
  credit availability with an overall 85.96
  commitment capacity, of which 77.48 were
  declared disbursed into humanitarian activities.
• The overall consumption capacity of said
  programmed activities of CHF 2006 from
  participating UN Organizations is 66.60.

20
Administrative Agent Support

• In this respect UNDP through the NGO community
  and IOM was able to score by end of 2006
• 93.11 commitment capacity versus the total
  credit availability of 33,608,494.56, with an
  overall comparative performance towards
  participating UN Organizations of plus 7.15
• 69.16 of commitments were reflected into actual
  disbursements for NGOs and IOM. It is worth
  mentioning that the structure of the Project
  Cooperation Agreement (PCA) envisages
  tranche-releases on a quarterly basis, therefore
  at 31st December 2006 only 4 quarters out of 6
  quarters of implementation were expected to be
  delivered to NGOs and IOM.
• 64.39 of consumption capacity has been
  demonstrated by UNDP in partnership with IOM and
  NGOs. This indicator shows than NGOs and IOM were
  equally responsive to the funds as Participating
  UN Agencies, even if the access to the funds
  followed a sub-grant modality.
• The overall balance carry-over of participating
  UN agencies at the beginning of 2007 was USD
  44,174,930.62. On the other hand the UNDP cash
  balance for IOM and NGOs was limited to USD
  239,630.44.

21
UNDP performance with CSOs
UN PARTICIPATING ORGANIZATIONS
Financial outcome
June 06
December 06
Fund Mgt Service to CSOs
22
UNDP performance with CSOs
UN PARTICIPATING ORGANIZATIONS
Quality outcome

• Achievements include not only a better
  disbursement rate but also on-going support and
  technical assistance to CSOs
• CSO assessment database
• Production of guidelines,
• Simplification of contractual templates,
• Ad-hoc and regular workshops and training
  sessions

• Achievements include not only a better
  disbursement rate but also better positioning of
  CSO in accountability fwk of CHF
• Prudent financial management and quarterly
  consumption check
• Audit requirement
• Verification of allocation activity schedule

THEREFORE

• CSO chance / capacity of access to pool fund
  initiatives increased.
• CSO response to CHF more accountable and safe
  than UN

23
UNDP performance with CSOs
UN PARTICIPATING ORGANIZATIONS

• Is UNDP best positioned
• to keep exercising
• management role of CSO in CHF context?
• 70 Mil USD question

Fund Management

• UNDP finds itself uneasy in an humanitarian
  context.
• In CHF
• Does not have, want, programmatic involvement in
  project/ngo/sector/region selection.
• Assessment of impact of humanitarian aid
  impossible ME only financial
• Knows only sub-contracting modality government
  approval which may result unrealistic for
  humanitarian aid.

24
2007 PREDICTABLE Challenges

• 1. Trend of HQ centralization
• OCHA HQ UNDP HQ
• (establishment of MDTF Office June 2007)
• Efficiency track
• Division of labor CO HQ
• Information sharing
• Resources available at CO level

2. Monitoring Evaluation CHF 2006 Risk
Analyses suggested by the AA in the Annual Report
CHF 2006 Sector and Regional focal points to add
programmatic sense as UNDP incapable to assess
humanitarian impact of the CHF .
25
2007 PREDICTABLE Opportunities

• UNDP CO in Fund Management
• Service to UN / CSO and HC
• Resource mobilization opportunities
• NGO access to other than CHF
• ERF CERF through UNDP
• IOM direct access to the fund

26
pipeline
Fund Management Unit
DCD P
DCD O
NEW
HC Office
CERF NGO Mgt 2007 Coordination with HC office
Juba Sector leaders ME OCHA Unit Juba NGOs
contracting NGOs quarterly Financial analysis Di
sbursement of funds, liaise With HQ
Treasury Consolidation of NGO portfolio Reportin
g Project Closure Juba
MDTF S.C. N/S
RRP Programme Financial Support Provides
centralized Programme Financial Support to the 10
NGO execution Projects. Training of NGOs and
National Counterparts. Disbursement of funds
and Liaise with HQ Treasury. Quarterly
reports. Monitor Programme Budget Audit Khartou
m Juba
CHF NGO Mgt 2006/2007 Coordination with HC
office Kht Juba AG, Sector leaders RC ME
OCHA Unit Kht Juba CSO capacity
assessment Capacity building NGO grant mgt NGOs
contracting NGOs quarterly Financial analysis Di
sbursement of funds, liaise With HQ
Treasury Consolidation of NGO portfolio Reportin
g Project Closure Khartoum Juba
MDTF Admin. Agent Provides Operational
Support to the S. Committee Khartoum
and Juba. Monthly financial / 6 monthly
narrative fin. reports. Reporting guidance to
UN Timely disbursement of funds Liaise with HQ
Treasury. Operational support to UN A. Donor /
Govt relation Khartoum Juba
ERF
75 Mil. USD
74 Mil. USD
? Mil. USD
NEW
27
Opportunity 1Chain factor
UNDP Programme may take the opportunity to
mobilize resources driving the Humanitarian
response 2006/2007 into DEVELOPMENT EARLY
RECOVERY
28
Opportunity 2Regional Base Programming
UNDP Programme may take the opportunity to
mobilize resources driving the Humanitarian
response 2006/2007 into DEVELOPMENT Mapping
29
Opportunity 3Emergency Response Fund (ERF)
DONOR

• Communicate to AA funds to be booked on CHF for
  ERF
• Assess ERF needs
• Allocation letter - Produce PCA Payment request
  ME

HC OCHA
AA

• Reserve funds for ERF to be managed by UNDP

UNDP

• Signs contracts/operate disbursement to NGOs
• CSO capacity assessment of NGOs

NGOs

• Produce PCA Payment request Audit
• Receive funds and report on use

30
BUSINESS PROCESS SIMPLIFIED CHF FOR ERF
Support to NGO
Engine starts
31
SIMPLIFIED CASH-FLOW ENGINE
Donors
Opportunity 3Emergency Response Fund (ERF)
ALL. LETTER
HC
COMMON FUND
ADMINISTRATIVE AGENT (UNDP)
UN PARTICIPATING ORGANIZATIONS
UNDP
ERF x
NGOs
ERF x
32
Opportunity 4Central Emergency Response Fund
(CERF)
programming
Contracting
Project Proposal
OCHA - CERF
Funding
UNDP - CPRU
HC / DHC
OCHA
LoU
UNDP
1.5 Million USD
bidding
OCHA
UNDP FUND MGT SERVICE
patnership
EPR UNIT
NGO FOR LRA AFFECTED AREAS
UN FOR LRA AFFECTED AREAS
33
Consolidation ofUNDP FM Position
UNDP FUND MGT SERVICE
34
Final note

• The support provided to the Common Humanitarian
  Fund in Sudan has clearly indicated that Joint
  Programming (pass through) modality of fund
  management represents a challenge and an
  opportunity at the same time. Segregation of the
  decision making process pertaining to the
  different Programming entities inevitably poses a
  certain degree of complexity. Conversely, Joint
  Programming is equally interesting as it provides
  a concrete opportunity to merge complexity into a
  complementary approach. The fund management
  approach has the potential to serve as a cohesive
  force towards the realization of an efficient and
  effective One -UN intervention - approach.

35

• Contacts
• Fund Manager
• enrico.gaveglia_at_undp.org
• FMU Operation Officer
• ali.arifi_at_undp.org
• FMU Operation Assistant
• fikri.albashir_at_undp.org
• RRP Financial Administrator
• vacant_at_undp.org
• CHF NGO Coordinator
• luca.trevisan_at_undp.org
• CHF Finance Assistant
• reem.bilal_at_undp.org

Thank you