2016 program of work and budget - cgiar.org file4. the consortium presumes that the work of the...

Previously circulated to the Consortium Board on 14 October 2015 as CB approved

Consortium Board Twenty Second Meeting CB22-08

Washington, D.C., 1 – 2 November 2015 of 15

7 September 2015, Revision 1

CB22-08

2016 Consortium Program of Work and Budget Purpose: The paper presents the draft 2016 Program of Work and Budget of the CGIAR Consortium1 (“2016 PoWB”) for Consortium Board approval via electronic vote in advance submission to the Fund Council for review and approval at its 4-5 November 2015 meeting (“FC14”). Record of Consortium Board decision 1. Upon the recommendation of its Audit and Risk Management Committee, the

Consortium Board approves the Consortium’s 2016 Program of Work and Budget dated 7 September 2015, Revision 1.

1 Consortium means Consortium Board and Consortium Office.

This document will be discussed at the Fund Council’s Fourteenth meeting on 4 – 5 November 2015

Document Category: Paper is able to be shared with Centers in

advance of those discussions.

CGIAR Consortium 2016 Program of Work and Budget



Part 1 – Introduction 1. This proposed 2016 Program of Work and Budget for the CGIAR Consortium

(“2016 PoWB”) recognizes that the CGIAR system will transition to a new governance model and organization structure during the 2016 calendar year, headed by a CGIAR System Council and supported by a CGIAR System Office.2

2. The draft Transition Plan and accompanying budget, submitted to the Fund Council on

5 August 2015 (anticipated to be approved on a no objection basis by 4 September 2015) proposed that the Consortium Office prepare a 2016 calendar year budget that assumes the continuation of its current responsibilities and work program. Further, any funds allocated for the 2016 budget that have not been committed by the time of the establishment of the CGIAR System Office would be transferred to the new office.3

3. The Consortium intends to hand over the organization (building, assets and staff) to the new organization on a “going concern” basis, to enable a smooth transition rather than winding down the current organization and starting over.

4. The Consortium presumes that the work of the Transition Team will define the tasks

and functions of the new System Council and Office, which may require adjustments to the Program of Work and Budget during the calendar year.

Part 2 – Key 2016 PoWB assumptions 5. Taking note of the proposed timing for transition to the new system organization

(currently anticipated to be 1 July 2016 based on Fund Council deliberations), and the guidance from the Fund Council as set out at paragraph 2 above, the Consortium Office proposes a 2016 PoWB that: a. Identifies four key priorities identified by management in the year ahead, with

particular focus on supporting the development of the full proposals for the next generation of CGIAR Research Programs (“CRP2”) in line with the new 2016–2030 CGIAR Strategy and Results Framework approved by the Consortium Board in May 2015; and

b. Summarizes proposed deliverables for the Consortium’s continuing responsibilities.

6. The proposed 2016 budget for the Consortium amounts to $7,166,577. The funding sources are indicated at paragraph 11 below.

2 Decision of the CGIAR Fund Council at its Thirteenth Meeting, 28-29 April 2015. 3 Paragraph 55 of the draft Transition Plan issued on 5 August 2015.




Part 3 – 2016 Key priorities 7. The four priorities for the Consortium in 2016 are summarized as follows:

a. CRP 2nd Call: The top priority is clearly to do everything we can to put the strongest possible CRP2 investment portfolio in place – and help mobilize the resources necessary to implement this work. The Consortium is carrying out the value for money analysis and preparing recommendations to the Fund Council. Key decisions are which proposals should move forward as well as the allocation of core and ‘uplift’ budgets.

There are other related tasks, however:

preparation of the Full Proposal Guidance for submission to the Consortium Board for approval;

contributions to the resource mobilization strategy – particularly development of the “business case” (the value proposition) at portfolio level, together with key strategic partnerships and meetings related to resource mobilization;

preparation of management responses to the IEA CRP evaluations, and IAU CRP audits, and ensuring that lessons learned find their way into CRP development process; and

GCARD3 consultations and meeting preparation and associated processes such as the site integration (or country coordination) aspects.

b. Transition to System Council and Office:

The Consortium will engage on several fronts with the Transition Team, particularly its governance / legal specialists. The Consortium will also work closely with the Fund Office to ensure a smooth transition into the new System Office.

c. Annual cycle of reports and plans:

The third priority is the regular cycle of the various annual plans and reports – all necessary to keep the system going.

d. Risk management:

The final priority is to ensure that a well-governed and run entity is handed over to the new System Organization, risk assessment has to be conducted and a report prepared on key strategic system-wide risks – and then monitored over the transition.

8. Other ongoing work will be continued within the capacity of the office and as long as

it does not provide a distraction from the four top priorities outlined above.




9. Staffing: In 2014 the Consortium Office switched to an approach of 1-year staff contracts during the uncertainty following the MTR report. Subsequent to the Fund Council’s April 2015 decision to locate the new System Office, which will take over most of the functions of Consortium Office, in Montpellier, the Consortium Board supported management’s decision to return to normal Human Resources practices, that is, 3 year contracts managed through annual performance review cycles.

10. As the overall approach of the Consortium is to maintain the office as a going concern,

the Consortium Office will not create new positions during the transition, but it will recruit replacements for departing staff and renew fixed-term contracts as per the normal policies.

Part 4 – Budget summary

The proposed 2016 budget for the Consortium amounts to $7,166,5774, with the forecast revenue from the CGIAR Fund Window 1 to remain at the same level as for 2015, being $6,614,000 and the remainder to be financed through revenue from internal tax retained in accordance with the Headquarters Agreement with France; overhead chargeable to projects and hosted entities; and cost recovery from Shared Services. The over-arching assumption is that revenue from the CGIAR Fund will be the same as for 2015 and that there will be no reduction of this amount. The other sources of income are considered to be stable and the probability of their realization high. The Consortium recognizes that in times of uncertain budgets it is important to be even more cost conscious than normal. Therefore, the Consortium Board and Consortium Office will regularly monitor where savings can be made without prejudicing delivery on its 4 priorities.

11. Supported by the summary of Consortium priorities and proposed deliverables/ outputs set out at Annex 15, the 2016 Core Budget and associated revenue sources are presented in the Tables 1 and 2 below.

4 As at 1 January 2015, the €:$ exchange rate was €1:$1.21. The euro has been volatile, leading to an

exchange rate of $1.1 to €1 as at 31 August 2015. This rate was used in preparing the 2016 PoWB. 5 The Consortium Office will prepare an operational document detailing the steps to be taken for engaging

Centers and other stakeholders, with regard to deliverables that require endorsement of other stakeholders, to ensure that target dates are met.




Table 1: 2016 Core Budget

Budget Header 2016 Budget ($) 2015 Amended

Budget ($)

Forecast Expenditure for the year

ending 31 Dec 2015 ($)

Board Fees & Insurance1 273,270 303,701 288,515

Staff Costs2 4,230,136 3,971,783 3,521,720

Consultants 1,508,701 1,345,000 1,396,330

Travel3 581,734 531,000 622,406

Building Management and Operational Costs

160,600 168,711 169,508

Administrative Expenses 232,137 215,470 218,139

Meetings4 180,000 195,000 238,144

Amount to be allocated by the Consortium Board

- 201,000 201,000

Total 7,166,578 6,931,665 6,655,762 1. The Consortium Board has been availed requisite resources to ensure that it appropriately

undertakes its fiduciary duty. The budgeted expenses are based on the full year. The activities anticipated include engagement with various stakeholders, participation at Center Board of Trustee meetings, attendance at Consortium Board meetings, honoraria and engagement in transition matters.

2. In 2015, there were no salary adjustments made. The budget for 2016 staff costs is based on the 2015 actual costs adjusted upwards with an intergrade and indexation rate of 3%.

3. The Travel budget header is exclusively for travel outside Montpellier, by Consortium officials.

4. The Meetings budget header is for meetings to be hosted in Montpellier including travel for non-Consortium participants for whom complete costs are covered by the Consortium e.g. Peer Review Team and external stakeholders participating in meetings in Montpellier.




Table 2: Funding Sources

Revenue Budgeted for 2016 ($)

Revenue from Window 1 of the CGIAR Fund 6,614,000

Retained Internal Tax1 232,657

Cost Recovery from Shared Services2 125,000

Overhead Chargeable to Projects and Hosted Entities3 194,921

Total Revenue 7,166,578

Expenditure

Consortium Operations 7,166,578

Total Expenditure 7,166,578

Surplus/Deficit -

1. In accordance with the Headquarters Agreement entered into by the French Government and the CGIAR Consortium, an internal tax is deducted from the salaries of members of staff, at a rate of 5.5% of gross salary ($4,230,136).

2. Estimated cost recovery from shared services initiatives. 3. The overhead chargeable to projects and hosted entities is 4% of the annual budget for the

projects and 4% of reference costs for hosted entities. The projects for which the Consortium Office has administrative and operational responsibility, and their budget for 2016 are listed below:

The Gender in Research Action Program (GRAP): $1,680,000.

Open Access - Open Data: Implementation in 2015 was behind schedule. Therefore, the remaining 2015 funds allocated will be carried over to 2016.

Strengthening Impact Assessment at the CGIAR (SIAC): $1,515,000.

African Agricultural Technology Platform – Virtual Information Platform (AATP-VIP): $858,000.

Furthermore, the Consortium provides office and administrative facilities to the Internal Audit Unit. The reference budget amount for determining the overhead payable by the Internal Audit Unit is $700,000.




Table 3: Posts by Department

Department and Post Number of Posts

Chief Executive Office 3.0

Chief Executive Officer

Senior Advisor - Governance

Assistant to the Executive Office

Science 8.5

Chief Science Officer

Director of Science

Senior Science Officer

Senior Foresight Advisor (Secondee - 50%)

Senior Gender Advisor (Funded by GRAP)

Data & Knowledge Manager

Science Fellow

Knowledge Management Associate

Assistant

Finance and Corporate Services 11

Chief Finance Officer

Director of Human Resources & Talent Management

Director of Shared Services

Finance Manager

IT Manager

Finance and Management Accountant

Accounting and Procurement Associate

Shared Services Associate

Finance Fellow

IT Fellow

Assistant

Strategic Partnerships 6.5

Director – Strategic Partnerships (Secondee)

Partnership Advisor

Protocol Officer (Secondee)

Communications Manager

Communication and Information Associate (50%)

Communications Fellow

Assistant

Legal 3.5

General Counsel

Temporary Legal Officer

Legal Officer (65%)

Assistant (50%)

Total 32.5


CGIAR Consortium Board of 15

Annex 1 – 2016 CGIAR Consortium Key Actions and Outputs/Deliverables

Key activities 2016 outputs / deliverables Target completion date

1. Policies/Guidelines and Standards - development and cyclical revision

1.a Common Operational Framework (approved by/involves engagement with the Fund Council):

(e.g. CGIAR Financial Guidelines Series numbers 1 to 6; Investment and Reserves policies; CRP Monitoring Principles and Reporting Templates; CGIAR Principles on the Management of Intellectual Assets; CGIAR –FC Dispute Resolution Policy).

As relevant to the priorities set during the Transition Period, selected financial guidelines and other policies to be revised and drafts readied for tabling to the appropriate structures of the new System Organization.

(a) Drafts of revised versions of the following documents to be submitted to the CGIAR System Council by 31 October 2016, subsequent to having been prepared by the Consortium Office and incorporating input from the Centers:

o FG2: CGIAR Accounting Policies and Reporting Manual;

o FG4: Guidelines for Preparing the 2010-12 Medium-Term Plans and the 2010 Financing Plans;

o Investment Policy Guidelines; o CRP Monitoring Principles and Reporting

Templates.

(b) The Consortium Office will prepare revised drafts of the following documents and submit them, no later than 30 November 2016, to the Centers for consideration. Center-endorsed versions will be submitted to the CGIAR System Council no later than 31 March 2017:

o FG3: CGIAR Auditing Guidelines; o FG5: CGIAR Cost Allocation Guidelines; o FG6: CGIAR Procurement of Goods, Works and

Services Guidelines.




Common Operational Framework policies cont/d

(c) By 31 December 2016 the Consortium Office will have undertaken the biennial review of Principles on the Management of Intellectual Assets in consultation with the Centers and the Fund Council, and sought the approval of the Consortium Board.

1.b CGIAR system wide policies, guidelines and standards (not approved by Fund Council):

(e.g. Risk management process; Communications Strategy; Intellectual Assets Guidelines; Good Governance Framework;).

(a) Risk management process, monitoring, and oversight to be fully embedded. Workshops will be held in the CO to identify the key risks within the various departments; their causes; existing and proposed controls; probability of occurrence; impact; risk rating; mitigating actions; additional controls to be implemented; and owner of the risk.

(b) Work commenced in 2015, geared towards identification of key strategic risks for the whole system, will be continued.

(a) A comprehensive risk management framework and charter to be presented to the Audit and Risk Committee, and subsequently, to the Consortium Board in Q1 2016.

(b) Risk management reports to be submitted to the Audit and Risk Committee and Consortium Board (and their successors), on a quarterly basis. These will incorporate the escalation and de-escalation of specific risks, premised on the risk statements in the financial statements of the Centers and the Consortium.

(c) A comprehensive escalation (and de-escalation) policy to be agreed between the Consortium and Centers by 31 December 2016 to address system-wide whistle-blower claims, thereby ensuring that the right issues are being addressed at the right level (note: Each Center, and the Consortium, has its own internal whistleblower policy).




2. Core business: Managing annual CRP cycle

Programmatic: Continue to manage and lead the existing CRP portfolio.

Ongoing.

Preparation of the 2015 CRP Annual Report.

The report to be submitted for approval by governing organs by 30 June 2016 and published by 31 August 2016.

Implement the Strategy and Results Framework.

Ongoing.

Evaluate / review and approve CRP Full Proposals.

From 1 April 2016 until end of the year.

Develop model partnership agreements for the CRPs to use in the second round.

To be submitted for approval by the CGIAR Systems Council by 30 September 2016.

Financial:

Guidelines for Results based budgeting and reporting for CRPs agreed with CRPs and Centers.

To be submitted for approval by the CGIAR Systems Council by 30th September 2016.

Establish baseline for reporting and transaction costs.

31 March 2016.

Preparation of quarterly CRP finance reports.

To be extracted from CRP quarterly reports submitted by individual Centers (deadline 1 month post quarter-end) and reporting per CRP to be sent to Lead Centers within 1 week.

Develop funding agreements for the second round of CRPs.

30 November 2016.




Intellectual Assets: Preparation of the Annual CGIAR Center Consolidated Intellectual Assets Report (for submission by the Consortium to the Fund Council IP Group).

31 May 2016.

CGIAR Annual Report: Comprised of 4 core reports (Portfolio, CGIAR Financial, Consortium Financial, and IA Report) plus an overall CGIAR Annual Report

2015 Consortium Audited Financial Statements.

Audited version to be ready by 31 March 2016 and submitted for Consortium Board approval no later than 7 April 2016.

2015 CGIAR Financial Report to be complete and approved by the Consortium Board and delivered to the Fund Council.

31 May 2016.

2015 CGIAR Intellectual Assets Report to be complete and approved by the Consortium Board and delivered to the Fund Council.

30 June 2016.

The 2015 CGIAR Annual Report. To be submitted to the governing structures by 31 July 2016.




3. Shared standards / systems / services (development and service provision)

One Corporate System: Develop common reporting tool for both OCS and non-OCS Centers to ease consolidation of information.

The common reporting tool will be finalized by 30 June 2016 and implemented effective 1 January 2017.

OCS facilitating common reporting Participate in the OCS Steering Committee to improve collaboration in development of phases 2 and 3.

Open Access:

Support and facilitate the development of plans to make Centers and CRPs Open Access. (This project is funded from extra-

budgetary resources and not from the Consortium core budget)

All 15 Centers develop Open Access Implementation Plans.

(a) The Open Access development plans are targeted to all be finalized by 30 November 2016.

(b) A proposal to extend funding will be submitted on 15 September 2015. The expectation is that, factoring funder review and comments, the approval will be received before 31 March 2016.

Other Shared standards, systems or services: Office365/Collaboration Platform

2 CRP collaboration platforms using CGIAR Consortium-wide Office 365/SharePoint online implemented.

30 June 2016.

Shared Services Business Plan: Identify and implement 2-3 initiatives as proof of concept to implement Shared Services

Shared Services and Value for Money concepts embedded in the CRP second call.

To be elaborated in the Call for Full Proposals due in November 2015. The Full Proposals are to be submitted by 31 March 2016.




Shared Procurement:

Negotiate agreements for ICT, GIS, services and Libraries on behalf of Centers

Shared Agreements which represent business of over 1.2M negotiated.

31 December 2016.

In collaboration with AIARC tender for the following services: Emergency Medical Evacuation; Business Travel Accident; Security Tracking; Security Evacuation.

30 June 2016.

In collaboration with ICT group tender system-wide ICT services for email and identity management.

31 October 2016.

Shared Collaboration Tools Maintenance of Google Applications (cgxchange) service and support for CGIAR Research Centers and programs delivered.

31 December 2016.

Staff Security Initiative Staff Security Accountability Framework finalized and approved by Consortium Board

28 March 2016.

Travelers' tracking tool implemented in all Centers.

4. Communities of Practice/ Partner Relations (development and support)

Strategic Communication: internal and external

Maintain online media presence: web, social media, etc.

Ongoing across the 2016 year.

Brand recognition/ donor engagement Select participation in events. Ongoing across the 2016 year.




Partnership Development Develop CRPs Guidelines on Partnership.

September 2016.

Run GCARD3 consultation process with GFAR through ca. 20 national and 3 regional consultations (incl. CAADP-CGIAR agenda development in Africa, and enhancing role of Embrapa in LAC consultation).


Develop Consortium strategic partnerships with major world-class research organizations and private sector.


Communities of Practice Coordinate and facilitate annual (or six monthly as required) meetings of Communities of Practice, including KM Leaders, Heads of Comms, ICT Leaders, CapDev, CLIPnet; Corporate Service Executives and HR.

By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders.

Coordinate Legal /IP CoP Coordinate and facilitate annual meeting of Community of Practice, and ad-hoc engagement with International Treaty governing body as required.

By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders.

5. Internal Consortium business

Good governance and compliance Prepare documentation for and support Consortium Board and Fund Council meetings.

Meeting planned for April 2016; May 2016; July 2016; October 2016; and November 2016.




Support Committees. o Each 6 months: SPPC, GPCC, NEC. o Each quarter: ARC and AOG. o Ad hoc as required.

Efficient financial management Annual reporting against Program of Work and Budget.

By 31 May 2016; and by 31 October 2016

Internal Monthly Management Accounts and Cash flow projections.

Within 15 calendar days after month end.

Legal transition to new Organization

Legal transition to new Organization cont/d

Develop a new governance framework document and other legal documents as required.

31 July 2016, or as amended by Transition Team planning cycle.

Initiate process to amend the Agreement establishing the Consortium as an International Organization.


Amend or revoke System-wide or internal policies and guidelines.


Amend current CRP funding agreements to reflect single Organization status.


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