budgetary framework 2009 -2012

UNITED NATIONS

Papua New Guinea

BUDGETARY FRAMEWORK

2009 -2012

Table of Contents

1. INTRODUCTION ....................................................................................................... 4

2. THE PAPUA NEW GUINEA COUNTRY FUND .......................................................... 6

2.1 What is the PNG Country Fund? ...................................................................................................................... 6

2.2 Key principles underlying the PNG Country Fund .......................................................................................... 7

2.3 Structure of the PNG Country Fund ................................................................................................................ 7

2.4 Types of resources supporting the Joint UN Country Strategy .................................................................... 12

2.5 Participation in the PNG Country Fund ......................................................................................................... 12

2.6 Agency resources and the PNG Country Fund .............................................................................................. 13

2.7 PNG Country Fund management ................................................................................................................... 14

2.7.1 Earmarking in the UN Country Fund ...................................................................................................... 17

2.7.2 Management of donor contributions .................................................................................................... 18

2.7.3 Fund Administration .............................................................................................................................. 19

2.7.4 Fund allocation and accountabilities ..................................................................................................... 20

2.7.5 Dispute resolution mechanism .............................................................................................................. 20

3. JOINT RESOURCE MOBILIZATION ............................................................................ 22

3.1 Purpose of a Joint Resource Mobilization strategy ..................................................................................... 22

3.2 Joint Resource Mobilization and the UN Country Fund ............................................................................... 23

3.3 Joint Resource Mobilization approach .......................................................................................................... 25

3.4 Resource Analysis UN Country Strategy............................................................ Error! Bookmark not defined.

3.4.1 Summary ................................................................................................... Error! Bookmark not defined.

3.4.2 UN Country Programme resource analysis ............................................... Error! Bookmark not defined.

3.4.3 Other resource requirements ................................................................... Error! Bookmark not defined.

3.5 Government of Papua New Guinea (GoPNG) ............................................................................................... 26

3.6 Donor analysis ................................................................................................................................................ 28

4. COUNTRY FUND ALLOCATION PROCESS AND ALLOCATION CRITERIA ........ 36

4.1 Purpose of the allocation criteria .................................................................................................................. 36

4.2 Principles of allocation .................................................................................................................................. 36

4.3 Allocation Decisions ....................................................................................................................................... 37

4.3.1. Allocation formula UN Country Fund..................................................................................................... 37

4.4 Allocation Frequency ..................................................................................................................................... 39

4.5 Allocation Process .......................................................................................................................................... 39

4.5.1 Base rules of engagement ..................................................................................................................... 39

4.5.2 Allocation process UN Country Fund ..................................................................................................... 40

4.6 Reporting requirements ................................................................................................................................ 43

4.7 Allocation criteria .......................................................................................................................................... 44

4.7.1 Eligibility criteria .................................................................................................................................... 46

4.7.2 Performance criteria .............................................................................................................................. 48

4.7.3 Programme priority based criteria ........................................................................................................ 49

APPENDIX 1: TOR UN COUNTRY FUND ................................................................... 50

APPENDIX 2: MEMORANDUM OF UNDERSTANDING (SIGNED) UN COUNTRY

FUND ............................................................................................................................ 58

APPENDIX 3: STANDARD ADMINISTRATIVE AGREEMENT FOR DONORS UN

COUNTRY FUND.......................................................................................................... 70

1. Introduction

The United Nations has a special contribution to make to the achievement of Papua New Guinea’s development outcomes. This contribution is not primarily financial. It is as standard setter, policy adviser, capacity developer, implementation supporter, coordination specialist, and catalyst – including of new approaches at the grass roots level that can lead to systemic and national change. The Millennium Declaration and the MDGs provide the basis of UN’s strategic positioning and support for national development plans. Major changes in the aid environment following the Paris Declaration (2005) and the Accra Agenda for Action (2008) changed the aid environment at global, regional and country levels. The UN System has suffered in the past from fragmentation in policy development and implementation, insufficient alignment between agency policies, strategies and implementation structures, and differing, complex management structures. The quality of programme and operational support in some cases has been affected; there is scope for improvement and consolidation. In response to these challenges and opportunities, and responding to the TCPR resolutions in 2004 and 2007, the UN in PNG has pro-actively taken up the challenges of the UN Reform by becoming a self starter country, resulting in new innovative approaches to programme and operational design and delivery. Further supporting these Reform efforts is the fact that the UN System in Papua New Guinea was selected by UN Headquarters in 2006 to try out new approaches for the One Office concept. The One Office pilots are encouraged to develop and implement business models that facilitate further integration of UN programmes and operations at the country level. In an effort to consolidate and further focus innovations at the country level, the UN Country Team (UNCT) agreed to consolidate the reform with the ultimate objective to establish ‘One UN’ based on 5 components, as articulated in the UNCTs “Delivering as One” strategy paper1. The development and implementation of the 5 elements is supported by a results based management approach and change management activities in support of the ongoing transition of the agency based delivery model towards the “integrated One UN” model. All of the elements of the Joint UN Country Strategy are supported by a joint resource mobilization strategy. This strategy complements agency specific resource mobilization efforts, analyzes the development priorities of key donors in country and matches these priorities with the un(der) funded results areas in the Joint UN Country Strategy. The 5 components are reflected in the Joint UN Country Strategy, which is the highest level strategy of the UN system at country level:

1. UN Programme (PNG UN Country programme2008-2012). 2. UN Operations (harmonizing and aligning UN business practices). 3. UN Communications and Advocacy (providing a joint UN communication framework). 4. UN Country Fund supported by a joint UN resource mobilization strategy.

1 Ref “Delivery as One in PNG Strategy Paper”, February 2009

5. UN Haus (creating single country presence of UN agencies).

Figure 1.1 reflects this structure:

Change Management

Pillar 4:

Gender

PNG UN JOINT COUNTRY STRATEGY

UN Programmes:

UN Country Programme 2008-2012Strategic Support

Pillar 2:

Foundation for Human Development

Pillar 3:

Sustainable Livelihoods and Population

Pillar 1:

Governance and Crisis Management

Pillar 5:

HIV and AIDS

UN Budgetary Framework(including UN Country Fund)

UN Operations

UN Haus

UN Communications and Advocacy

Results Based Management

Joint Resource Mobilization

2. The Papua New Guinea Country Fund

2.1 What is the PNG Country Fund?

The “PNG Country Fund” allows the UN System in PNG to move towards a single financing

mechanism for development which manages an increasing share of UN development funds

at country level. The “PNG Country Fund” provides therefore a means for further

consolidation of Country Funding mechanisms in PNG and coherent mobilization, allocation

and disbursement of donor resources in support of the five Delivering as One elements of

the Joint UN Country Strategy, as articulated in the previous section.

All additional resources mobilized through the joint UN resource mobilization efforts, and an

increasing amount of agency non-core/other resources mobilized in country will be

managed through the Country Fund. Agencies core/regular resources remain outside the

Country Fund.

The “PNG Country Fund” is meant to simplify and increase harmonization of UNs financial

mechanisms. A single report will cater to donors' reporting needs, rather than donors

receiving multiple reports from different agencies. It is important that donors2 to the “PNG

Country Fund” aspire to contribute early and as multi-year as possible to strengthen

predictability and strategic decision making on the basis of the Joint UN Country Strategy

development priorities and national strategies.

In order to minimize transaction costs for partners, the UN will strive to mobilize the

required additional resources through joint resource mobilization efforts and use a single

report on development results. To enhance transparency of resource allocation and

utilization, the resources mobilized will be clearly tied to the results that the resources are

meant to support. The allocations are based on Results Based Management principles,

favoring programmes that demonstrate high delivery and manage to show results.

The additional resources mobilized will be allocated on the basis of results based allocation

criteria (ref Appendix D). These allocations will follow the priorities determined by the joint

GoPNG/UN Country Programme Steering Committee. These are based on the development

priorities as outlined in the national development strategy, further reinforcing and

demonstrating the UNs commitment to the Paris Declaration Principles and national

ownership of the development agenda. The PNG Country Fund will further enhance the

2 Note that “donors” may refer to either a bilateral donor, or other funding sources such as global (e.g. Expanded One UN window) and thematic funds (e.g. GEF).

UN’s ability to identify which resources are channeled to which result areas, reinforcing the

UN capacity to identify its contribution to, and align with the national development

priorities.

2.2 Key principles underlying the PNG Country Fund

1. Country Fund in support of One Strategy: the Country Fund supports the results of the Joint UN Country Strategy.

2. The PNG Country Fund is a voluntary structure. Agencies can join on an annual basis. 3. Only participating UN organisations can receive funds from the PNG Country Fund. 4. The PNG Country Fund focuses on the management of an increasing amount of agency non

core resources and of additional resources mobilized in support of the unfunded or underfunded outcomes articulated in the results frameworks of the Joint UN Country Strategy.

5. Existing agency core resources are not part of the PNG Country Fund. However agencies are asked to identify the outcomes and outputs to which they plan to allocate core funds so as to allow the UN System to have an accurate picture of the resource gap and the un-(der) funded outcomes in the results framework.

6. Agency resource mobilization efforts are complementary to the joint resource mobilization efforts. Agencies are asked to identify the resources mobilised bilaterally to the UN Resident Coordinators Office to ensure that the UNCT retains an up-to-date overview of the available resources and the resource gap.

2.3 Structure of the PNG Country Fund

The PNG Country Fund offers two different funding windows, allowing UN organizations and

partners to contribute to a particular type of UN activity in PNG. Each window has a number of

results matrices that present each outcome with its own set of costed outputs, as well as a

series of indicators to verify progress. The results matrices also identify applicable risks and

assumptions.

Window 1 reflects required resources, mobilized resources and the resource gap associated with

the UN Country programme 2008-2012, while window 2 focuses on required resources,

mobilized resources and the resource gap associated with the strategic support functions

reinforcing the delivery of the UN Country Programme. This second window includes results

based management and change management activities associated with the transition from the

agency based model to the UN System based model.

The following graph illustrates the PNG Country Fund structure:

UN Country Fund

Change Management

Pillar 4:

Gender


UN Programmes:


Pillar 2:

Foundation for Human DevelopmentPillar 3:


Pillar 1:


Pillar 5:

HIV and AIDS

UN Budgetary Framework

UN Operations

UN Haus

UN Communications & Advocacy


Window 1: UN Country Programme

FundWindow 2: Strategic Support Fund


This window focuses on resources in support of the UN Country Programme 2008-2012. The

funding window allows donors to support any unfunded and/or short funded outcomes that are

part of the UN Country Programme thematic elements:

I. Governance and Crisis Management 1. Parliament and Legislative Support 2. MTDS and MDGs in National Planning and Monitoring 3. Provincial Planning and Management 4. Protection and Advocacy for Human Rights 5. Crisis Prevention 6. Disaster Management

II. Foundations for Human Development

1. Health 2. Education 3. Child Protection

III. Sustainable Livelihoods and Population

1. Environmental Management and Sustainable Livelihoods 2. Population

IV. Gender

1. Women in Leadership 2. Gender-Based Violence

V. HIV/AIDS

1. HIV and AIDS Prevention 2. HIV and AIDS Treatment 3. HIV and AIDS Management

VI. Cross Cutting and Inter-Sectoral Interventions

1. Human Rights 2. Gender Mainstreaming 3. Monitoring Systems 4. Capacity Development 5. Decentralization and Strengthening of Civil Society 6. HIV and AIDS 7. Youth

Window 2: Strategic Support

Strategic support functions are defined as all non programmatic intervention aimed at delivering

UN Programmes efficiently and effectively. This window reflects resources in support of the

strategic support functions and includes change management activities associated with the

transition from the agency based model to the UN System based model. Results funded through

this second window include:

I. UN Budgetary Framework

In accordance with UNDG guidelines, a UN budgetary framework includes the following

elements:

1. UN Country Fund, including fund management mechanisms

2. UN Resource analysis, clearly outlining core UN core contributions, UN non core

contributions and remaining resource gap

3. Joint resource mobilization strategy , focused on mobilizing resources to close the

resource gap

The United Nations Country

Programme (UNCP) and Action Plan

Under the overarching theme of a

“Partnership for Nation Building”, the

Government of PNG and the UN agreed

to focus UN support in five outcome

areas: Governance and Crisis

Management, Foundations for Human

Development, Sustainable Livelihoods

and Population, Gender and HIV/AIDS.

Through the nation building lens, the

UN will systematically focus on

developing a deeper understanding of the

root causes of poverty and conflict with

the ultimate goal of supporting the

Government of Papua New Guinea to

deliver on the Medium Term

Development Strategy and achieve the

Millennium Development Goals. The

fine tuning of the UNCP in terms of

programming and management

arrangements is described in the UNCP

Action Plan.

The results included under this section focus on the management and analysis of UN

resource utilization aimed to further enhance UN spending and targeting. Other results

focus on the joint mobilization of the resources required to cover the resource gap

II. UN Operations (including Common Services)

The One UN Operations element articulates the activities of the UN to harmonize and

align different agencies business operations, including procurement, ICT, human

resources and finance systems. One of the main elements supporting to ongoing work in

One UN Operations is the development of Common Services. Based on cost benefit

analysis results, common services used by all UN agencies are provided centrally rather

than by each agency separately, drastically reducing costs and/or enhancing quality

associated with these services compared to the situation where each agency would

provide these services itself. Example Common Services include a UN Travel Desk, ICT

support, UN Procurement and UN Security Services.

In the long run, the UN “Excom” agencies in PNG (UNDP, UNICEF and UNFPA) plan to

integrate the majority of their administrative support services (Procurement, ICT, HR

and Finance). After the initial pilot phase, other non Excom agencies will decide whether

they can/will join this integration effort.

III. UN Haus

The One UN Haus in PNG serves as a driver and vehicle for further programmatic and

operational integration of the UN System in Papua New Guinea, as it forms the basis for

further expansion of Common Services and provides a unified presence of the UN

System in PNG. In this capacity it facilitates further reduction of transaction costs and

enhanced alignment and coordination within the UN System and between the UN

System and other development partners. As such, it is one of the cornerstones for the

Reform process at country level.

IV. UN Communication and Advocacy

The One Voice integrates the UNs communication resources in specific areas that are

considered to be of particular importance to the development agenda in PNG, including

the MDG’s. The results envisioned by the One Voice concept are articulated in the Joint

Communication Strategy. A key cornerstone of the Joint Communication Strategy is the

Joint UN Advocacy Strategy focused on development issues that the UNCT considered to

be of particular importance in a given year e.g. Gender Based Violence and Universal

Basic Education in 2009. The focus of the advocacy strategy is re-assessed annually to

ensure that the prioritized advocacy issues are relevant and take into account new

developments.

V. Results Based Management

The UN in Papua New Guinea has developed a joint management strategy by which

processes, products and services contribute to the achievement of desired results.

Results Based Management (RBM) rests on a clear definition of accountability for

results, and requires monitoring and self-assessment of progress towards results, and

reporting on performance. The UN Country Programme’s result matrix is the

management tool that is ‘alive’ and used in an iterative way to maintain relevance in

Papua New Guinea’s dynamic development context. Having one results matrix for the

entire UN programme ensures a strong programmatic logic that extends from 5-year

outcomes and 3-5 year outputs, all the way down to a set of concrete annual

deliverables. Similarly, and to monitor progress towards Delivering as One, a second set

of result chains is being developed to outline the aims in terms of Delivering as One.

Regular updates are shared with relevant management teams and committees and

inform decision making at all levels (including resource allocation).

VI. Change management

UN Reform is about transforming the way the UN does business on a day to day basis. It

includes changing the way the UN System plans, delivers, communicates and

coordinates its activities. Change management focuses specifically on three key

elements of change:

Organizational change: This focuses on the redesigning of UN roles, functions, rules

and regulations (where needed) for the purpose of enhancing and maintaining

effective delivery by the UN Organization. The design of integrated Task Teams and

the GoPNG/UN Programme Steering Committee are examples of organizational

change.

Process change: Process change focuses on process analysis and process re-

engineering that is required to make the enhanced organizational structure work

effectively. An example of process change is the Harmonized Approach to Cash

Transfers (HACT) and the integrated programme development process, supporting

the UN Country Programme.

Capacity/skill change: This focuses on how the UN System can engage in capacity

development to build and maintain the internal skills and capacity required to

respond to national development priorities and changed skills and capacity needs

following organizational and process changes within the UN System. It uses the Joint

UN Country Strategy results framework as a basis and is based on UN comparative

advantage. An example of capacity skills change includes the UN capacity

assessment, which would assess the type of capacity the UN system needs in the

changing aid environment and how the UN can develop the requisite capacity to

meet this demand.

2.4 Types of resources supporting the Joint UN Country Strategy

There are three types of resource categories that support the Joint UN Country Strategy in PNG3:

1. Core/regular resources: core resources are agency head quarters or regional contributions

towards the resource requirements of the agencies development activities in PNG. Core

resources are not managed by the Country Fund.

2. Noncore/other resources: Noncore funds are contributions to agency development

activities from alternative funding sources, i.e. resources that do not originate from the

agencies headquarters or regional “core” contributions. The UNCT aspires for non core

resources to increasingly be channeled through the Country Fund.

3. Additional resources: Additional resources are resources that are mobilized through joint

resource mobilization of the RC\UNCT focused on covering the un(der) funded results of the

Joint UN Country Strategy. Additional resources are managed by the Country Fund.

Part of the resource requirement articulated by the table in the next section has been mobilized

through the “core” and “non-core” resources of the UN agencies. However, these resources are

insufficient to finance the full Joint UN Country Strategy, leaving a resource gap for which

“additional resources” are mobilized through global, regional and country level funding sources.

2.5 Participation in the PNG Country Fund

UN agencies confirm their voluntary participation in the PNG Country Fund by signing the

Memorandum of Understanding4 (ref Appendix B: Memorandum of Understanding for

Participating Agencies) with the Administrative Agent and become a “Participating UN

Organization”. Agencies that choose not to sign the MOU are referred to in this document as

“non-participating agencies”. Only agencies that are participating in the PNG Country Fund can

receive resource from the PNG Country Fund and participate in the decision making process on

allocations of the PNG Country Fund. Agencies can switch from non-participating to participating

status once a year. Only agencies with active programmes within the framework of the UN

Country Programme can participate in the PNG Country Fund.

3 UN organizations use different terms to identify the categories of funds available to them in support of development activities at the country level (for example, core resources, regular resources, non core resources, other resources). In the context of this concept paper, the term “core” and “non-core” resources will be used from hereafter and will include other agencies equivalents of similar types of resources. 4 The standard Memorandum of Understanding participating agencies is a UNDG approved document

Donors are encouraged to channel funding through the PNG Country Fund. Donors can become

donors to the PNG Country Fund after signing the Standard Administrative Arrangement5 (ref

Appendix C: Standard Administrative Arrangement with Donors) with the Administrative

Agent.

2.6 Agency resources and the PNG Country Fund

The UN Systems main resources are based on agency contributions that are allocated to results

outlined in the Joint UN Country Strategy based on joint Annual Work plans. These main

resources are usually referred to as an agencies’ “core” and “non-core” resources.

Agencies core funds remain outside the PNG Country Fund. Agencies are asked to identify to

which outcomes and outputs in the Joint UN Country Strategy they allocate their resources to

allow the UN Resident Coordinators Office to establish the resource gap at the outcome and

output level of the results matrices. Agencies are asked not to divert from allocations as

identified, but the agencies continue to manage and handle their own core funding. Agencies

can also continue to raise in country resources on an agency basis, but as outlined above, will be

asked to inform the UN Resident Coordinators Office on the amount mobilized and the planned

allocation of those resources. The latter is to keep track of the available and required resources

for the UN System. Donors and agencies are encouraged to channel their mobilized resources

through the Country Fund if possible.

Earmarking in the context of the UN Country Fund is discouraged and donors are asked to

contribute un-earmarked funds. Only in highly exceptional cases and after consultation and

approval of the GoPNG/UN Country Programme Steering Committee and/or the UNCT will

earmarking be allowed6.

In addition to the agencies core and non-core resources, the RC, on behalf of the UNCT, will

engage in joint Resource Mobilization for un(der)funded outcomes. The “additional resources”

raised by the joint resource mobilization efforts are channeled through the PNG Country Fund

and therefore are subject to the management arrangements outlined in this document.

The figure below illustrates this relation between agency and PNG Country Fund resources:

5 The Standard Administrative Arrangement with donors is a UNDG approved document 6 Please refer to Section 2.7.1. Earmarking in the UN Country Fund for further details

2.7 PNG Country Fund management

The governance of the “PNG Country Fund” is decentralized to the country level and includes

the GoPNG and the Participating UN Organizations/Agencies.

The following division of labor guides the governance process for the UN Country Fund in PNG:

The GoPNG/UN Country Programme Steering Committee sets the high level priority

thematic areas at the yearly Country Programme Steering Committee Meeting and

approves the resource allocations based on the advisory report of the UN Budgetary

Committee.

Resources are allocated by the Programme Steering Committee7 and the UNCT,

under the leadership of the RC.

7 In the case where the GoPNG/UN Programme Steering Committee fails to meet within 1 month of the new annual programme

cycle, the authority to allocate resources to the intermediate outcome level reverts to the UNCT and the RC to ensure UN programme delivery is not jeopardized.

The UN Budgetary Committee advises the Programme Steering Committee on

resource allocations and governance arrangements of the UN Country Fund (for

example annual revision of allocation criteria)

The AA will transfer resource after receiving explicit instructions from the Resident

Coordinator.

The following graph illustrates this structure:

UN Country Fund

Change Management

Pillar 4:

Gender


UN Programmes:


Pillar 2:

Foundation for Human DevelopmentPillar 3:


Pillar 1:


Pillar 5:

HIV and AIDS

UN Budgetary Framework

UN Operations

UN Haus

UN Communications & Advocacy



FundWindow 2: Strategic Support Fund

Governance: GoPNG/UN Steering Committee

The management responsibilities are divided between the RC, the GoPNG/UN Country

Programme Steering Committee, and the UN Country Team.

The GoPNG/UN Country Programme Steering Committee is responsible for:

Monitoring overall progress towards achieving results of the UN Country

programme;

Determining programmatic priorities and allocating resources at the intermediate

outcome level for the next annual programme cycle, in accordance with agreed

allocation procedures8.

The RC will be responsible for:

Strategic leadership of the PNG Country Fund on the basis of the “PNG UN Country

Programme 2008-2012” and the results framework of the other four Delivering as

One elements (Country Fund, One UN Operations, UN Haus and One Voice);

Engaging in Joint Resource Mobilization for the PNG Country Fund in collaboration

with Participating UN Organizations;

(S)he will be responsible for ensuring the documentation of the allocation process

including the rationale for these decisions. Implementation of activities funded by

the resources of the Country Fund will be the responsibility of the Head of

Participating UN Organizations. The RC will hold Head of Participating UN

Organizations accountable for their agency/organization’s components of the

results of initiatives funded through the Country Fund;

Ensuring consolidated PNG Country Fund level reporting, including to donors, based

on reports from Participating Organizations and support from the Administrative

Agent (ref below) and the UN Resident Coordinators Office.

The UNCT is responsible for:

Monitoring the overall progress towards achieving results outlined in the Joint UN

Country Strategy results;

As part of the Programme Steering Committee, the UNCT outlines programmatic

priorities and allocating resources at the intermediate outcome level for the next

annual programme cycle, in accordance with agreed allocation procedures9;

Mediation of disputes in case of disagreements on allocation, utilization or

management of funds from the Country Fund;

The UN Budgetary Committee is responsible for:

8 In the case where the GoPNG/UN Programme Steering Committee fails to meet within 1 month of the new annual programme cycle, the authority to allocate resources to the intermediate outcome level reverts to the UNCT and the RC to ensure UN programme delivery is not jeopardized. 9 In the case where the GoPNG/UN Programme Steering Committee fails to meet within 1 month of the new annual programme cycle, the authority to allocate resources to the intermediate outcome level reverts to the UNCT and the RC to ensure UN programme delivery is not jeopardized.

Recommendations for the allocations of un-earmarked resources mobilized through

the UN Country Fund to facilitate UNCT decision-making process;

Annual review of UN Budgetary Framework allocation criteria and governance

mechanism to incorporate lesson learned and propose revisions of the UN

Budgetary Framework where needed;

Engagement with partners to facilitate operationalization of resource mobilization

agreements that use the UN Budgetary Framework as management arrangement.

This includes the development of schedule of payments and facilitating the signing

of the Standard Administrative Arrangement (SAA);

Annual reporting to MDTF at the outcome level on allocations and utilization of UN

Country Fund resources allocated for that year.

2.7.1 Earmarking in the UN Country Fund

As a general rule, donors to the One UN Fund in PNG are encouraged to contribute un-

earmarked resources.

However, in the context of the UN System in Papua New Guinea some exceptions apply to this

general rule, especially in the context of bilateral resources raised at country level being

channeled through the UN Country Fund.

Three types of earmarking are relevant in the context of the UN Country Fund:

1. Un-earmarked: Donors contribute resources in support of the UN Country Programme,

without specifying the thematic area of interventions where the resources should be

utilised. As this allows the Programme Steering Committee chaired by GoPNG and the

UN maximum flexibility in terms of allocations, this type of earmarking is strongly

preferred.

In terms of governance arrangements, un-earmarked resources are allocated by the

GoPNG/UN Steering Committee and follow the allocation process as outlined in Chapter

410.

2. Thematic earmarking: donors earmark resources to be used in support of a particular

thematic area that is part of the UN Country Programme in PNG and that is in line with

the donors development strategy

Thematic earmarking is allowed in certain circumstances but generally discouraged to

allow maximum flexibility for the UN to pursue programme priorities/unmet priority



needs. Hence, donors are asked to contribute un-earmarked funds to the degree

possible. However, many donors have a requirement to be able to report to their

governments and their constituencies in what thematic area their development

resources have been spent. Under the un-earmarked modality, tracking the thematic

areas where the resources are contributed to is challenging.

Under a thematic earmark the donor identifies the outcome in the UN Country

Programme to which the resources are to be contributed.

In terms of governance arrangements, thematic earmarked funds are not subjected to

any allocation decisions by the UNCT, RC and/or GoPNG/UN Programme Steering

Committee. It is allocated directly to the Task Teams that are working in that particular

thematic area by the Administrative Agent (MDTF Office in New York) as per the donors

earmarking instructions. The Task Team allocates the resources based on the priorities

as outlined in the Joint Annual Work Plan of the Task Team.

3. Agency earmarking: donors earmark resources for a specific agency in support of the

development activities undertaken by the agency, as reflected in the joint AWP.

Agency earmarking is in general discouraged by the UN Country Team and will only be

approved under very specific circumstances. In the case of PNG, agency earmarking is

only allowed for contributions to agency staff costs. Agencies will identify the amount of

resources received from the donor in support of staff costs in the Joint Annual Work

Plans and indicate their wish to receive these resources under an agency earmark. This

arrangement allows the UN agencies a degree of predictability and control over

resources required to engage and retain staff as part of our development programme.

In terms of governance arrangements, agency earmarked funds are not subjected to any

allocation decisions by the UNCT, RC and/or GoPNG/UN Programme Steering

Committee. It is allocated to the participating agency by the Administrative Agent

(MDTF Office in New York) as per the donors earmarking instructions.

2.7.2 Management of donor contributions

Every year, the donor will sign the schedule of payments (an Appendix of the Standard

Administrative Arrangement) with the Resident Coordinator, on behalf of the UN Country

team and the GoPNG. The Schedule of Payments outlines:

a. The amount of resource to be expected from the donor for that particular year

b. The proportion of those resources that is un-earmarked

c. The proportion of total resources that is thematically earmarked for a particular

thematic area

d. The proportion of resources that is agency earmarked (only for resources supporting

UN staff costs)

2.7.3 Fund Administration

The PNG Country Fund is a joint development fund modeled on the UNDG pass-through funds

management mechanism, successfully applied in Multi-Donor Trust Funds and Joint

Programmes (ref UNDG Guidance Note on Joint Programming).

The PNG Country Fund will be administered by the United Nations Development Programme, through its Multi-Donor Trust Fund Office (UNDP/MDTF Office), as Administrative Agent (AA), on behalf of the Participating UN Organizations and the Resident Coordinator, as agreed with the GoPNG. The UNDP/MDTF Office will administer the PNG Country Fund in accordance with its Regulations and Rules. It will perform the full range AA-functions as per the PNG Country Fund TOR, Memorandum of Understanding (MoU) and Standard Administrative Arrangement (SAA), and will do so in accordance with the UNDG-agreed “Protocol on the Administrative Agent for Multi-Donor Trust Funds, Joint Programmes and Country Funds”.

The UNDP/MDTF Office’s responsibilities as Administrative Agent will include the following:

Receipt and administration of contributions from donors;

Disbursement of funds to Participating UN Organizations, in accordance with

instructions of the Resident Coordinator, on behalf of the Country Programme

Steering Committee and in accordance with the approved Annual Work Plans;

Provision of consolidated narrative and financial reports on the PNG Country Fund

Account to the Resident Coordinator, GoPNG/UN Programme Steering Committee,

UNCT and donors, based on progress reports received from Participating UN

Organizations, in accordance with the reporting schedule specified in section VII of

the Country Fund ToR.

In line with the MOU between Participating UN Organizations and the Administrative Agent, a clear delineation, including distinct reporting lines and an accountability framework, has been established and will be maintained within UNDP between its functions as an Administrative Agent and its functions as a Participating UN Organization. In conformity with the UNDG Guidance Note on Joint Programming, the Administrative Agent

and the Participating UN Organizations will be entitled to deduct their indirect costs on

contributions received. The Administrative Agent’s administrative fee will be 1%. The fee will be

http://www.undg.org/index.cfm?P=237

deducted from the contributions to the PNG One Country Fund at the time they are deposited.

The indirect costs by the recipient Participating UN Organizations will be 7%11.

For more details on fund management and administration, please refer to the PNG Country

Fund MOU and SAA.

2.7.4 Fund allocation and accountabilities

The PNG Country Fund uses the Joint UN Country Strategy results framework as its primary allocation tool. Funds are to be allocated to achieve the highest priority results that are “unfunded” or “under funded”, as reflected by the Joint UN Country Strategy and new initiatives responding to emerging needs within the context of the UN Joint Country Strategy, as determined by the Resident Coordinator, Participating UN Organizations and the GoPNG.

Each Participating UN Organization benefiting from the PNG Country Fund is responsible and

fully accountable for its respective programmatic and operational results, reporting and funds

received.

Funds provided by donors are held “in trust” by the Administrative Agent, in accordance with

the provisions stated in the MOU and SAA, and will be transferred to Participating UN

Organizations upon the receipt of instructions from the Resident Coordinator on behalf of the

appropriate governing body (GoPNG/UN Programme Steering Committee or UNCT).

Some results to be funded (or co-funded) from the PNG Country Fund may be achieved via the

individual interventions by Participating UN Organizations, in which case the allocations will be

made to these Participating UN Organizations.

The details of individual Participating UN Organizations interventions will be set out in the

relevant joint Annual Work Plans, programme or project documents.

Agency specific auditing will be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of the respective Participating UN agency. The activities of the Administrative Agent will be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of UNDP. For further details on the allocation mechanism and priority setting of the Country Fund, please

refer to Chapter 3: Country Fund allocation process and allocation criteria.

2.7.5 Dispute resolution mechanism

The UNDG working group on RC Issues has developed a UNCT conflict resolution mechanism

that will support UNCTs dealing with the resolution of issues arising from differences in positions

11 The outlined fee structure is in line with the IA agreed UNDG guidelines on cost recovery

or interpretations of results and resource allocations. The UNDG approved MDTF Fiduciary

Management Oversight Framework (FMOG) will provide additional guidance in case of dispute.

This mechanism only applies to disputes associated with UNCT common processes such as common services, common programming, joint programmes, and related funding, which should be solved first and foremost at country level in an amicable environment12. The solution envisaged must be acceptable to all parties to the dispute and should be based on an internal, fair and equitable process. In addition to the dispute resolution mechanism, the guidelines on the UNCT/RC working relations and the RC ToR provide further clarity on how to manage a dispute situation. For further details regarding the dispute resolution mechanism, the working relation between UNCT/RC and the ToR of the RC please refer to the respective guidance notes, also available on the UNDG website.

12 Issues of misconduct will be dealt with under the respective staff rules and regulations of each organization.


3. Joint Resource Mobilization As part of the broader Reform efforts, the UN in PNG has redesigned its strategic planning and

implementing mechanism, integrating the different UN agencies strategies under one strategic

umbrella (the Joint UN Country Strategy). At the same time, the UN System has pooled the

agencies’ human resources in support of development results in similar thematic areas, as

outlined in the Joint UN Country Strategy. These resource pools are referred to as Task Teams.

13Each Task Team is responsible for the design and costing of at least one intermediate

outcome and the respective joint Annual Work Plans. These Plans are ultimately signed with the

government of PNG and guide the UNs efforts on a day-to-day basis14. Each agency contributes

to the realization of development results through this Task Team structure.

The Results Frameworks for the 15 joint Task Teams form the basis for the Joint Resource

Mobilization Strategy.

3.1 Purpose of a Joint Resource Mobilization strategy

The joint UN resource mobilization strategy serves several purposes:

Integrates ways of mobilizing resources in support of the Joint UN Country Strategy

(reflecting UN Programmes and UN Strategic Support Functions), which is aimed to

support GoPNG to realize the MDGs at the country level.

Reduces duplication and focuses resource mobilization efforts of the different UN

agencies at country level, contributing to simplification and harmonization

Increases the probability of realizing the results outlined in the Joint UN Country Strategy

by ensuring that adequate resources are raised in a structured manner

Reduces transaction costs to partners by streamlining their interaction with UN agencies

Enhances alignment with partner priorities and agendas as it identifies the specific added

value of UN country level strategies vis-à-vis the partner’s agenda and continued

alignment between partner and UN strategic priorities.

It should be noted that the full resource mobilization document includes resource mobilization

efforts in support of the remaining four elements of the UN Country Strategy as well (the

strategic support functions) and includes a broader range of resource mobilization targets.

In the past, the UN System operated on a less integrated operating modality, with each UN

agency having a separate country strategy and raising resources on behalf of their own

13 The Task Teams are programmatic Task Teams but also include the Task Teams responsible for the other DaO pillars such as the UN Operations Committee (responsible for UN Operations and UN Haus) and the UN Communications Committee (responsible for UN Communication and Advocacy) 14 The UNCP counts 16 intermediate outcomes and only 13 Task teams as some Task teams cover more than one intermediate outcome

programmes. This drastically raised the transaction costs for both the government and other

partners when coordinating and engaging with the UN system.

One of the advantages of integrated UN Country Strategy, a UN Country Fund and the

supporting, integrated delivery mechanisms (theme-based UN Task Teams and Joint Annual

Work Plans), is that it becomes possible to consolidate and rationalize the UN Systems resource

mobilization efforts and subsequently channel and allocate these resources through the UN

Country Fund to the un(der)funded parts of the Joint UN Country Strategy.

This strategy provides the basis for the UNCT and Task Teams in Papua New Guinea to mobilize

resources in support of the results frameworks underpinning the Joint UN Country Strategy. The

document outlines the common ground between the donors’ development priorities, as

outlined in their country strategies, and the under-resourced UN development results, as

outlined in the UN Country Strategy. It also provides the basis for the development of tailored,

partner specific resource mobilization approaches, based on the partners and the UNs shared

development priorities in a specific thematic area.

The UNCT (supported by the UN Budgetary Committee and the UN Resident Coordinators

Office) and the Task Teams will use this data to prepare tailored resource mobilization strategies

that are tied in with donors’ national development strategies.

3.2 Joint Resource Mobilization and the UN Country Fund

The PNG UN Country Fund offers two different funding windows, allowing UN organizations and

partners to contribute to a particular type of UN activity in PNG. Each window has detailed

results matrices underpinning the anticipated results and resource requirements of the results

areas of that window.

The Joint Resource Mobilization efforts provides a differentiated resource mobilization

approach targeting specific partners or Funds for each window, based on the partner and funds

analysis. For example in-country and off shore partners will be mobilized primarily in support of

Window 1: Un Country Programme, while UN HQ funds and agencies will be used as main

funding sources for window 2: Strategic Support.

The following graph illustrates the PNG UN Country Fund structure:


This window focuses on resources in support of the UN Country Programme 2008-2012. The

funding window allows partners to support any unfunded and/or short funded outcomes that

are part of the UN Country Programme thematic pillars:

Pillar 1: Governance for Equitable Development

Pillar 2: Social Justice, Protection and Gender Equality

Pillar 3: Access to Basic Services

Pillar 4: Environment, Climate Change and Disaster Risk Management

Figure 1 reflects the 4 UNDAF 2012-2015 thematic areas and the 14 interagency outcomes of

the UNDAF 2012-2015:

Cluster 1: Governance for Equitable Development

•Governance

•Parliament and local governance

•Financial Inclusion, Management and transparency

•MDGs & Population

•Aid Effectiveness

•MDG Advocacy & Monitoring•Population & Development

•Peace-building

•Bougainville

Cluster 2: Social Justice, Protection & Gender Equality

•Promotion & Protection of Human Rights

•Gender Equality & Women’s Empowerment•Women in Leadership

•Gender Based Violence

•Child Protection

•HIV & AIDS

Cluster 3: Access to Basic Services

•Health

•Maternal & Child Health

•Health Systems Strengthening

•Communicable Diseases (including Water & Sanitation)

•Education

Cluster 4: Environment, Climate Change & Disaster Risk Management

•Disaster Risk Reduction, Preparedness and Response

•Environmental Protection (including Sustainable Resource Management)

•Climate Change mitigation

Figure 1- UNDAF 2012-2015 outcome areas

3.3 Joint Resource Mobilization approach

PNG is characterized by a skewed donor landscape, with only six significant donors present

in country. Of the six donors, one donor (AUSAID) provides over 80% of aid resources. These

conditions make the opportunities for resource mobilization in PNG very limited.

As outlined in the next section, the required resources are offset against the available

resources (both core/regular and non-core/other) to obtain the resource gap at the level of

the 5 year UN Country Programme (outcome/output gaps) and at 1 year Joint Annual Work

Plan/Annual Deliverable level (Annual Deliverables gap).

The UN Resident Coordinators Office tracks the funding status of the UN Country Strategy

and cooperates with the Task Teams to mobilize resources from different sources to cover

the funding gaps in the Joint UN Country Strategy. This includes the identification of

potential partners and funds based on analysis of partner strategy, targeting potential

donors with which the UN can partner based on common development priorities and needs

of both the partner and the UN. Each partner will be approached with a tailor made value

proposition on behalf of the UN System, tying UN objectives to the partners’ own strategies.

The Joint Resource Mobilization strategy provides the data for this process by providing:

1. Outline of the current UN resource gap at the outcome and output level

2. Mapping and analysis of the potential partner landscape in PNG including in country

partners

3. Analysis of potential donor country development strategies, identifying common

grounds between the partners’ development priorities and the UN’s development

priorities

4. Matching donors’ country development priorities to under funded UN development

results as outline in the UN Country Programme, providing the basis for the design of

tailored resource mobilization strategies with a value proposition for each partner,

focusing on cooperative opportunities that mutually strengthen ability to deliver

development results for both the donor and the UN.

Note: UN Resource Mobilization at the country level is based on both agency level resource

mobilization efforts and UN System level efforts by the Task Teams and the UN Resident

Coordinators Office.

For further details regarding the process of Joint Resource Mobilization, please refer to the

Standard Operating Procedures for Joint Resource Mobilization, to be obtained from the UN

PNG website http://www.un.org.pg .

3.4 Government of Papua New Guinea (GoPNG)

Primary Strategic Development framework: Medium Term Development Strategy

(MTDS)

Cycle: 2005-2010

Resource requirement: 4,300,000,000 USD

The MTDS is PNGs overarching plan for socio economic development for 2005-2010 and

provides the broad policy framework for the UN Country Programme. The MTDS has

seven priority expenditure areas and is estimated to require 4,300,000,000 USD to

implement.

The MTDS identifies seven key expenditure areas include:

Basic education

Primary and preventive health care

Rehabilitation and maintenance of Transport infrastructure

Law and Justice

http://www.un.org.pg/

Generation of income earning opportunities

HIV/AIDS prevention

Development oriented adult education

The government has expressed a clear wish to increasingly use its own resources in the

medium term to support the implementation of the MTDS.

The UN System has made significant progress in moving forward on the Paris

Declaration and the implementation of the Accra Agenda for Action:

The UN Country Strategy reflecting 96% of UN Programmes at country level is aligned

with the GoPNG Medium Term Development Strategy (MTDS 2005-2010)

The UN Annual Work Planning cycle has been aligned with the government work

planning cycle

UN’s resource contributions in the context of the UN Country Programme are reflected

in the national budget

Resource allocations in the context of the UN Country Fund are governed by the joint

government/UN Steering Committee, providing government a leading role in UN

resource allocations in the context of the UN Country Programme.

The 2006 development budget identified eight key donors and development partners:

Source Million

Kina

Million

USD

% of nat. dev.

Budget (NDB)

Government of PNG 527 201 31%

Australian Aid (AUSAID) 714 272 42%

Asian Development Bank (ADB) 119 45 7%

European Union (EU) 115 44 7%

Japan International Cooperation

Agency (JICA)

51 19 3%

World Bank (WB) 42 16 2%

New Zealand 37 14 2%

United Nations 26 10 2%

China 43 16 3%

Other 14 5 1%

Total 1 688 642 100%

3.5 Donor analysis

AUSAID

Primary Strategic Development framework:

Australia Development Cooperation Strategy (DCS)

Cycle: 2006-2010

Resource support in PNG: 272 million USD (2006)-42% of NDB15

Historic support to UN per thematic area: data unavailable16

Donor outline:

15

NDB = National Development Budget 16

With the introduction of the UN Country Fund this data will be available starting in 2010

Australia is by far PNG’s largest donor, being responsible for over 80% of ODA, and an

equivalent of over 42% of the total development resources available to the government

of PNG. AUSAID is considered a key development partner in PNG both due to its historic

relation with PNG (PNG was governed by Australia until becoming independent in 1975),

its position within the Pacific region and the substantive amount of resources Australia

contributes to development in PNG.

AusAID is of key importance to the UN System in PNG, being one of the key sources for

bilaterally raised resources and covering several agency activities in full, for an extended

period. During 2003-2007 AUSAID provided cross-sectoral funding of close to 9.14

million USD, mainly divided between UNDP (3.16 million USD) and UNICEF (5.98 million

USD). Australia is especially a key contributor to UNICEF as they have entered into a

regular three year partnership in which AusAID agreed to fund the majority of the

UNICEF activities at the country level, especially the Health and Child Protection

activities.

The DCS supports the MTDS in four priority areas:

Improved governance and nation building

Sustainable broad based economic growth and increased productivity

Improved service delivery and stability

Strengthened, coordinated and effective response to the HIV and AIDS epidemic

The AusAID program is sector-oriented around four core areas of the MTDS and includes

the following main sectors:

Democratic Governance and Governance Reform (advisory support and EPSG

twinning)

ECP (Enhanced Cooperation Programme): The ECP places senior Australian

Government officials in PNG to work alongside their counterparts, mainly in

central agencies. Other placements ensure system-wide linkages on policy and

management issues. Australia provides most resources to the Departments of

Finance and Treasury and the Internal Revenue Commission

Education (development of primary schooling and national education capacity

building

Health and HIV/AIDS

Disaster Management

Incentive Fund for rewarding good performance

Infrastructure(transport sector support, trunk Roads and Highland Highway

roads maintenance)

Law and Justice (Justice Advisory Group, support to law andjustice sector

agencies)

Performance Grant (an Enhanced Cooperation program (for economic reform,

law and justice, border management and transport security and policing)

Rural Development/Private Sector (ACIAR Trust Fund, agricultural research and

a quarantine twinning program)

Sub-National Initiatives,

PNG Other (Enhanced cooperation program, PATTAF; a targeted training facility)

The Australian government is a strong advocate of the Delivering as One process in the

UN and is keen to explore the opportunities presented by the UN Country Fund.

Additional UN Country Programme funding requests would be considered, provided the

programmes are clearly linked to the national development strategies and AUSAID’s

DCS.

Expanding collaboration with regards to the post conflict region of Bougainville is an

explicit opportunity for partnership and resource mobilization for the UN System in the

near future.

Asian Development Bank

Primary Strategic Development framework: Country Strategy and Programme

Cycle: 2006-2010

Resource support in PNG: 119 million kina (2006)/ 45 million USD – 7% of NDB

Historic support to UN per thematic area: data unavailable 17

Donor outline:

ADB is the second largest donor in PNG, closely tied in size of the support portfolio to

the EC. ADB development portfolio is divided in two types of support: “Lending

Assistance” and “Non-lending Assistance (including TA)”. ADB’s focus has traditionally

been on governance and public sector management, agriculture, transport, social

17


development (health, skills development and water) with special attention to gender

and population issues. Following a review in 2003, ADB narrowed its sector focus.

ADB’s current programme is based on 4 thematic focus areas:

Transport (road and maritime)

Health (including HIV and Aids)

Public Financial Management

Private Sector Development

Beyond these four focus areas; ADB recognizes opportunities to address gender

(especially focusing on support to women entrepreneurs) and environmental concerns.

ADB has several partnership arrangements with the UN, including in the area of Gender

Equality.

European Commission

Primary Strategic Development framework: Country Strategy Paper

Cycle: 2008-2013

Resource support in PNG: 115 million Kina (2006)/ 44 million USD —7% of NDB


Donor outline:

The EC is a very close third in terms of aid contribution to the national development

budget. The EC traditionally has supported two focus sectors: Education, Training and

Human Resource Development (39 million Euro); and Rural Water Supply and Sanitation

(25 million Euro), supplemented by an Institutional Capacity Building and Governance

Programme aimed at reinforcing provincial and district level governments (15 million

Euro).

The current EU Country Strategy paper has 2 focal sectors, supplemented by three non

focal support sectors and 3 cross cutting themes that the EC aims to mainstream:

Focal sector 1: Rural Economic Development

Improvement of local rural development planning

Upgrading of infrastructure to widen access to economy in rural areas

18


Improving access to market and economic opportunity information in rural

areas

Support to income generating activities in agriculture, fisheries and forestry

Focal sector 2: Human Resource Development

Non focal sector 1: Technical Cooperation Fund (TCF)/NAO support

Non Focal sector 2: Support to Non State Actors & Good Governance

Non Focal sector 3: Trade Related Assistance

Cross Cutting area 1: Gender Equity

Cross cutting area 2: Responsible Resource Management

Government of Japan/JICA

Primary Strategic Development framework:

Cycle: 2008-2013

Resource support in PNG: 51 million kina (2006)/19 million USD —3% of NDB


Donor outline:

Japan contributes to the economic and social development and human resources

development of PNG and aims to support self help and nation building efforts and to

promote peace and harmony.

JICA works to formulate projects that have a major impact and which promote

collaboration with other aid agencies. JICA is also concerned about changing

development issues beyond national borders and these include; accelerating changes in

the global environment, infectious diseases spreading beyond national borders;

reconstruction development arising from conflict and the need to respond to

diversifying Asia.

World Bank

Primary Strategic Development framework: Country Assistance Strategy

Cycle: FY 2008- FY 2011

19


Resource support in PNG: 42 million Kina (2006)/16 million USD – 2% of NDB


Donor outline:

The World Bank21 provides financial and technical assistance to PNG through both the

International Bank for Reconstruction and Development (IBRD) and the International

Development Association (IDA) which advance the goal of an inclusive and sustainable

globalization.

The World Bank strategy in PNG is based on two main pillars:

Supporting the sound and transparent management of the country’s natural

resources and resource revenues;

Addressing the needs of the poor by creating economic opportunities and

improving the delivery of basic services.

New Zealand Aid

Primary Strategic Development framework: NZAID Country Programme Strategy

Cycle: 2008-2018

Resource support in PNG: 37 million Kina (2006)/14 million USD – 2% of NDB

Historic support to UN per thematic area: data unavailable22

Donor outline:

New Zealand is regarded as an important partner by PNG government representatives

and Development Partners because of it capacity to facilitate sectoral dialogue and its

Pacific experience as a development partner. NZAID works both at the national policy

level and in (selected) provinces and districts, focusing partially on the rural

development agenda and a specific interest for the needs and interests of women

poverty reduction.

During the period from 2001 to 2007 NZAID actual level of support/expenditure in PNG

varied considerably from a low of 5.46 million USD in 2002/2003 to 17.8 million in

20

With the introduction of the UN Country Fund this data will be available starting in 2010 21 www.worldbank.org/pg

22


http://www.worldbank.org/pg

2006/2007. NZAID funding of 21.5 million in 2007/2008 is projected to increase further

to 30 million in 2009/2010, creating additional resource mobilization opportunities for

the UN System and establishing NZAID as a development partner of growing importance

in PNG.

NZAID has provided resources to the UN in the past, including USD 1.99 million to

UNFPA’s reproductive health programme and 1 million USD to UNDP.

The results of a strategy review in 2007 caused New Zealand to narrow down the focus

of its development strategy with the NZAID Country Programme Strategy 2008-2018

focusing on 2 priority areas:

1. Improved social services, responsive to need: Improved access to quality service

delivery in health and education, particularly for women and girls

Continued support to Health SWAP, with a focus on improving Health outcomes

Increased support to PNG National Strategic Plan for HIV and AIDS

Continued support to ADB’s condom social marketing project

Continued support to UNFPA’s strengthened reproductive health services

project

Policy engagement and technical support for the emerging Education SWAP

Human resources development through a Capacity Building and Institutional

Strengthening Programme that integrates scholarships and in- country training

opportunities

2. Improved livelihood opportunities for rural people: People enabled to improve

their livelihoods- including access to livelihood and enterprise development

services, and to markets

Institutional strengthening/support for key rural livelihoods initiatives

Strengthen service delivery through district level engagement

Strengthen service delivery through improved governance and resource

mobilization

Support to key civil society organizations

Mainstreamed intervention areas:

Gender equality and empowerment of women: Dual focus on mainstreaming a

gender perspective across all strategy focus areas and stand-alone gender

component

HIV/Aids-awareness and prevention- ref 1.b

Capacity development, especially for civil society-ref 2.d

NZAID has also expressed an interest in further collaboration with the UN in

Bougainville, especially in the Law and Justice Sector and further collaboration with the

UN in the context of Emergency Preparedness and Response.

4. Country Fund Allocation process and allocation criteria

Note: the allocation process outlined below applies to un-earmarked resources only.

Thematically or agency23 earmarked resources are directly allocated to the respective relevant

Task Team or agency, guided by the earmark.

4.1 Purpose of the allocation criteria

The criteria for the allocation of resources of the Country Fund in PNG provide an objective

basis for resource allocation decisions by the GoPNG/UN Steering Committee, the UNCT and

the RC to allocate resources to the respective results24 of the Joint UN Country Strategy.

The individual criteria are reviewed on an annual basis by the UN Budgetary Committee.

4.2 Principles of allocation

The allocation criteria are based on a set of three core principles.

1. Eligibility criteria

Eligibility criteria set the minimum requirements that any programme must meet in

order to be eligible to receive funds from the Country Fund. These criteria refer mostly

to alignment requirements with existing national and UN strategies, capacity25 of the UN

agencies Task Teams participating in the Joint UN Task Teams to deliver against the

outcomes, outputs and annual deliverables, degree to which the result and the

associated budget are realistic and the quality of the results framework26 supporting the

results for which funds are requested.

2. Performance criteria

Performance criteria are designed to prioritize resources to Task Teams with

intermediate outcome areas that have demonstrated good progress in the realization of

their annual deliverables. Performance is identified through a number of criteria

including absorption of funds, realization of annual deliverables, and timeliness of

reporting.

23 Note that agewncy earmarks are only allowed to the extent that they are used for staff contracts 24

The outcomes, outputs and annual deliverables are further referred to as “results” 25

Capacity to deliver includes available human resources and financial contributions of the agency to the result, in addition to the One Country Fund contributions 26

UN results frameworks include log frames and the M&E framework

3. Programme Priority criteria

Priority based criteria are designed to prioritize resource allocations to development

results that are explicitly aimed to support core UN development priorities27

supplemented by priorities specifically identified by the GoPNG/UNCT Steering

Committee at the start of the annual programme cycle.

4.3 Allocation Decisions

The allocation decision-making authority depends on the allocation type: outcome level

allocation or output/annual deliverable level allocations:

GoPNG/UN Country Programme Steering Committee identifies programme priority

areas in the UN Country Programme

UN Budgetary Committee advises the GoPNG/UNCT Steering Committee on

resource allocations at the intermediate outcome level

GoPNG/UN Programme Steering Committee allocates resources at the intermediate

outcome level- identifying the Task Teams that are to receive the resources

Task Teams allocate resources at the output level for the intermediate outcomes

covered by the Task Team

Task Teams allocate resources to annual deliverables and the agency supporting an

annual deliverable , based on the priorities as outlined in the Joint Annual Work Plan

Note that allocation requests from the UN Country Fund can only be made by Task Teams

on the basis of signed Joint Annual Work Plans. Agencies cannot request funds from the

Country Fund directly.

4.3.1. Allocation formula UN Country Fund

The following formula is used as the basis for allocation of un-earmarked resources at the

outcome level, ensuring a fair and objective allocation process for all Task Teams.

The recommendations for Funds Allocation are based on a results based allocation

mechanism28 to ensure the better performing Task Teams are rewarded by higher resource

allocations, while at the same time taking into account available resources. To this end two

variables determine the total resource allocation recommended:

27 UNDG has identified 5 core mandate areas for UN development interventions including Human Rights, Gender, Environment, MDGs and Capacity Development 28 For further details, pls refer to the UN Budgetary Framework document section 4.7

Available Resource Ratio

Results Ratio

4.3.1.1 Available Resource Ratio

In 2010, 13 Requests for Funds were submitted amounting to 2,595,000 USD. Only 1,319,000

USD is available, or 50.8% of the total requested resources. This is referred to as Available

Resource Ratio:

4.3.1.2 Results Ratio

The UNBC has ranked each proposal against the 22 allocation criteria (Eligibility, Performance

and Priority criteria) by attributing points called Priority Points to each Request for Funds29.

The total points scored by each Team are then translated into a percentage of the maximum

points attainable. This is referred to as Results Ratio. For example, a Task Team that scores

17 out of 22 points has a results ratio of 77% (17/22).

4.3.1.3 Recommended Resource Allocation

The resources are allocated using the following allocation formula:

Example:

The Task team for Gender requests 100.000 USD. The UNCT has 50% of the total amount of

resources requested available. The Gender Task team scored 19/22 points (86%) in the

performance ranking. The advised amount to be allocated from the UN Country Fund would

be:

100.000 USD (Requested Amount) x 50% (Available Resource Ratio) x 86% (Results Ratio) =

43.000 USD (Advised Resource Allocation)

29 For further details on priority points, pls refer to the UN Budgetary Framework document, section 4.7.

Results Ratio = Achieved Priority Points/ Total Priority Points

Available Resource ratio = Available resources/Requested resources

Advised resource allocation = Total Requested Amount x Available Resource Ratio

x Results Ratio

This formula promotes results-based allocation of resources, as teams with higher Results

Ratios will receive more resources, while at the same time it takes into account the available

resources through the Available Resource ratio.

After the allocation there will be a limited amount of resources left in the UN Country Fund

due to rounding of the percentages. Though the UNBC provides recommendations for the

use of the remaining funds, the ultimate allocation is at the UNCTs discretion. The allocation

advisory report does include recommendations for the use of this fund.

The UNCT has the discretion to allocate funding from these” remaining resources” to

initiatives outside the Task Team annual work plans as long as these initiatives are in support

of programmatic and operational priorities of the UN.

4.4 Allocation Frequency

Requests for Funding for the next programme cycle are submitted in Q4 of the year before,

after agreeing the next year’s Annual Work Plans (AWP) with government and the UNCT,

ensuring the allocations and disbursements take place in time for the next programme

cycle. Requests for Funding can be submitted only once a year by the Task Teams. Quality

Assurance of the Requests for Funding is the responsibility of the Task Team Leaders and the

Heads of Agencies that participate in the Task Teams.

Resources will be allocated at the start of the new programme cycle. In order to ensure

adequate utilization of funds by the Task Teams, the UNCT may decide to reallocate

resources at the end of the second quarter, based on the progress and/or changes

highlighted in the second quarter review. Performance is measured against the mid cycle

funds absorption rate and the ‘timeliness of reporting’ criteria of the performance criteria

set (ref performance criteria in 6.7.2).

4.5 Allocation Process

4.5.1 Base rules of engagement

The following base rules apply to the allocation process:

1. Acceptance or rejection of “Request for Funding” are based on majority vote of the

relevant governance body30 deciding on allocations

2. The UN Resident Coordinators Office will maintain an up-to-date overview of the

available resources, required resources and the resulting resource gap

3. Only results that are part of the UN Country programme 2008-2012, and that are

currently unfunded or underfunded are eligible to receive funds from the Country Fund

30

As outlined in the previous section “Allocation Decisions”

4. Only agencies that are “Participating Agencies” in the Country Fund can receive funds

from the Country Fund

5. Resource requests cannot be made on behalf of an agency, only on behalf of the Task

team responsible for an un(der) funded intermediate outcome

6. Each Request for Funding has to be accepted or rejected in its entirety

7. The Country Fund will not fund more than 49% of the total resource gap associated with

a particular result. The remaining 51% needs to be funded by other sources or the

agencies responsible for the particular result

8. Request for funding explicitly follow the results chains of the UN Country Programme,

e.g. each request is tied to a UNCP intermediate outcome, an output and the supporting

work plan and resource gap for the coming year31

9. The UNCT reserves the right to re-allocate resources based on Task Teams performance

after the second quarter review, based on the performance criteria outlined in section

3.8.

10. Any uncommitted funds remaining at the end of the annual cycle will be re-channeled to

the Country Fund and will be re-allocated in the next years’ allocation process

11. Criteria are subject to review on an annual basis and may be adjusted by the UNCT/RC

based on relevance and effectiveness of the criteria themselves

4.5.2 Allocation process UN Country Fund

The total elapsed time for allocation process from beginning (submission Request for Funds)

to end (receipt of resources) is 10 weeks. The allocation process consists of the following

steps:

1. Based on the agreed Annual Work Plans (AWP), the Task Teams working on

intermediate outcomes that are under or unfunded will submit a “Request for Funding”,

based on the standard templates.

2. Requests for Funding are submitted to the UN Budgetary Committee who will do an

initial analysis against the criteria for each Request for Funding. The UN Budgetary

Committee will compile a summary report, including initial analysis and

recommendations on resource allocations to support the discussions of the GoPNG/UN

Programme Steering Committee(PSC) within two weeks after the Request for Funding

deadline has expired

3. The GoPNG/UN Programme Steering Committee will meet not later than one week after

receiving the summary report from the UN Budgetary Committee, to allocate resources

at the intermediate outcome level32.

31

The only exception to this rule is emerging needs or disaster response interventions, which may trigger resource allocations of the Country Fund for ad-hoc interventions outside the UNCP results framework

4. UN Budgetary Committee will minute the resource allocations at the intermediate

outcome level and will distribute an intermediate outcome allocation report to the Task

Teams, no later than one week after the meeting of the GoPNG/UN Programme

Steering Committee took place.

5. The Task Team will meet to decide on the resource allocations:

a. at the output level, no later than one week after receiving the outcome

allocation report from the UN Budgetary Committee.

b. at the annual deliverable level: the Task Teams allocates resources to the

agencies responsible for realizing annual deliverables in support of the outputs,

based on the un(der)funded resource parts and the priority of the annual

deliverable(s). The Task Teams inform the UN Budgetary Committee of the

agency allocations no later than two weeks after having made the output

allocations described under a.

6. The UN Budgetary Committee /Resident Coordinator will prepare a summary allocation

report reflecting allocations at outcome, output and activity level, including distributions

to agencies responsible for activity implementation. The UN Resident Coordinators

Office will distribute the summary report to the Administrative Agent within one week

of receiving the agency level allocations from the Task Teams.

7. The Administrative Agent will transfer the resources to the relevant agency responsible

for the implementation of activities within one week of receiving notice from the

Resident Coordinator.

8. Agencies receive resources from the Country Fund-Window 1: UN Country Programme

Fund.

32

In the case the GoPNG/UN Programme Steering Committee fails to meet within a month of the deadline, the UNCT/RC will be responsible to make the required allocations, to avoid undue delays in funding allocations and potential adverse effect to UN Programme implementation

The calendar guides the timeline for the allocation process:

UN Country Fund Allocation Calendar

Nr Activity description Responsible Party

Calendar Deliverable

1 Task Team submits Request for Funding (RfF)

Task Team After agreeing AWP with GoPNG

Request for Funding Task Team

2 UN Budgetary Committee prepares summary of RfF and executes initial analysis and recommendations

UNBC Day 14 (Week 2)

Summary RfF Report: RfF, analysis & recommendations

3 GoPNG/UN Programme Steering Committee meets to allocate resources at intermediate outcome level1

GoPNG/UN PSC

Day 21 (Week 3 )

Minutes GoPNG/UN PSC reflecting allocation decisions at int. outcome level

4 UN Budgetary Committee distributes Intermediate outcome level allocation report to Task Teams

UNBC Day 28 (Week 4 )

Intermediate outcome level allocation report

5 Task Teams meet to prioritize and allocate resources to outputs, activities and agencies based on agreed AWP

Task Team Day 35 (Week 5,6,& 7 )

Minutes Task Team meeting reflecting allocation decisions at activity level & recipient agency

6 UN Budgetary Committee prepare and the RC sends to Administrative Agent a summary allocation report reflecting allocations at outcome, output and activity level, including agency recipients of fund

RC/ UNBC Day 56 (Week 8 )

Summary allocation report

7 Administrative Agent transfer resources to agencies responsible for activity implementation

AA Day 63 (Week 9)

Written confirmation AA to agencies

8 Agencies responsible for activity implementation receive funds

Agency Day 70 (Week 10 )

Bank statement



The flowchart below outlines the resource allocation process for the UN Country Fund graphically. The

numbering in the graph corresponds to the activities in the calendar outlined above:

Resource allocation Process PNG One Fund, Window 1-UN Country Programme Support_Final_June 2009

Ta

sk T

ea

mU

N B

ud

ge

tary

Co

mm

itte

eU

NC

T/R

C

Pro

gra

mm

e

Ste

erin

g

Co

mm

itte

e

Ag

en

cy

Ad

min

istr

ative

Ag

en

t

Annual

Work

Plan

Signed

GoPNG

Request

for

Funding

(RfF)

Week 1 Week 2 Week 3 Week 5Week 4 Week 6 Week 7 Week 8 Week 9 Week 10

Summary

RfF &

Initial

Analysis

Resource

allocation

outcome

level

Outcome

allocation

report

Resource

allocation

Output/

Activity

level

Summary

allocation

report

Resource

Transfer

Resource

Receipt

1

2

3

4

5

6

7

8

4.6 Reporting requirements

Reporting requirements are completely aligned with the reporting requirements in the

context of the UN Country Programme Action Plan, avoiding the creation of additional

workload for reporting purposes: Data reflected in the Single UN Annual Progress Report

33and the Quarterly UN Progress Reports will be used to meet the reporting requirements as

outlined below.

Task Teams receiving resources from the Country Fund (no matter whether it is window 1 or

window 2) will need to submit the following reporting items, using the standard reporting

templates:

Annual reporting requirements:

a) Annual narrative progress reports, to be provided to UN Resident Coordinators

Office no later than three months (31 March) after the end of the calendar year;

UNCO will subsequently forward the annual narrative reports to the AA.

b) Annual financial statements and reports as of 31 December with respect to the

funds disbursed to it from the PNG Country Fund Account, to be provided to UN

Resident Coordinators Office no later than four months (30 April) after the end of

the calendar year; UNCO will subsequently forward the annual narrative reports to

the AA.

End of project/programme reporting requirements:

c) Final narrative reports per intermediate outcome, after the completion of the

activities in the approved programmatic document and including the final year, to

be provided no later than four months (30 April) of the year following the financial

closing of the PNG Country Fund. The final report will give a summary of results and

achievements compared to the goals and objectives of the PNG Country Fund;

d) Certified final financial statements and final financial reports after the completion of

the activities in the approved programmatic document and including the final year

of the activities, to be provided no later than six months (30 June) of the year

following the financial closing of the PNG Country Fund.

4.7 Allocation criteria

The UNCT has designed the criteria of the Country Fund to encourage results based

programme development, focused on areas where the UN has a comparative advantage and

to encourage further professionalization of UN programme management. The UN Budgetary

Committee acts as an advisory body to the GoPNG/UNCT Steering Committee, advising on

the priority and extent of funding allocations to each Task Team using the criteria described

33 For further details on the Single UN Annual Progress Report to governemtn and donors and/or the Quarterly UN Progress

Reports, please refer to the UNCP Action Plan document

below. The GoPNG/UNCT Steering Committee makes the final decision on resource

allocations from the UN Country Fund.

There are three criteria categories: eligibility, performance and programme priority based

criteria.

Each category of criteria has a number of indicators. Each of the indicators has priority

points attributed to it. The color of the criteria category can be green (passed), orange

(passed with some concern) or red (failed). What color a request gets is determined by

simply adding up the total number of priority points for that particular criteria category. The

threshold for passing or not passing depends on the category, and each of the tables below

clearly outlines these thresholds for each of the three categories.

The allocations will be made subject to availability of funds starting at the highest scoring

‘Requests for Funding’, then medium scoring requests and last the low scoring requests.

Scoring level

Scoring requirement

High priority Green on all 3 criteria categories

Medium priority Green on 2 out of 3 criteria categories Orange on 1 criteria category (not eligible)

Low Priority Green on 1 out of 3 criteria categories Orange 2 out of 3 criteria categories (not eligible)

Notes:

Any Request for Funding must pass all the eligibility criteria in order to be able to receive

funds from the Country Fund.

Requests for funding that fail to score at least one green criteria category will not receive

any funding from the Country Fund.

Requests for Funding that score red in any of the criteria will not receive funding from the

Country Fund.

4.7.1 Eligibility criteria

National developments & international commitments Indicator Points

1 The "Request for Funds' supports deliverables that are explicitly tied to national development priorities as outlined in the national development strategies the MDGs or other international treaty obligations and clearly identifies the manner in which the UN plans to support these priorities -only relevant to Requests for Funding from Window 1: UN Country Programme-

The Joint Annual Work Plan for which the Request for Funding is submitted links the proposed deliverables directly to priorities identified in national development strategies and the MDGs or other international treaty obligations

1

2 2

The Joint Annual Work Plan for which the Request for Funding is submitted clearly outlines the UNs role supporting the government to realize the development priorities

1

Quality of analysis and programming Indicator Points 3

The Joint Annual Work Plan for which the Request for Funding is submitted supports results that are part of the 5 Year Strategic Plan and are based on sound analysis. -only relevant to Requests for Funding from Window 1: UN Country Programme-

5 Year Strategic Plan approved by relevant Task Team leader 1

3

4

5 Year Strategic Plan includes a results framework 1

5 All results in the 5 year results framework (intermediate outcome and outputs) have a set of indicators identified which all have a baseline, a source of data, a set of annual targets as well as risks and assumptions identified

1

Financial considerations Indicator Points 6

The Request for Funding reflects adequate Task team ownership and financial commitment

The requested amount outlined in the Request for Funds represents 49% or less of the total available resources of the AWP (excluding the “unfunded part in the Joint Annual Work Plan)

1

4

7

The 'Request for Funds' is realistic and based on earlier delivery experiences

The total “Request for Funding” does not exceed 120% of the actual expenditures of the Task Team in the previous annual programme cycle

1

8 Joint Annual Work Plan clearly outlines monitoring and evaluation interventions in support of the Joint Annual Work Plan

1

9 Individual agencies cannot increase their total 1resources through the Country Fund at any given

time by more than 50% of the total historic

resources available2 to that agency at the country

level. 3

1

Capacity Indicator Points

1 Total resources are the sum of all resources available to the country office on an annual basis, and include both programmatic

and operational resources. 2 “Historic resources available” are determined on the basis of the 3 year average resources available (excluding funding gap) to

an agency based on the agencies annual work plans. 3 In case of agencies that are developing a presence in country, this data will be based on the years the agency actually had

resources at the country level. If it is the agencies first year with presence at the country level, only that first year’s resources will be counted.

9

Individual agencies cannot increase their total 1resources through the Country Fund at any given

time by more than 50% of the total historic

resources available2 to that agency at the country

level. 3

1

Capacity Indicator Points 10

UN agencies and the Implementing Partner responsible for the achievement of outputs have the capacity to deliver on the funds

Not more than 75% of the requested funds are used for additional staff costs

4 1

2 11 Implementing Partner has approved the Joint

Annual Work Plan for which the Request for Funding is submitted

1

Total number of priority points “Eligibility” category: 11

1 Total resources are the sum of all resources available to the country office on an annual basis, and include both programmatic

and operational resources. 2 “Historic resources available” are determined on the basis of the 3 year average resources available (excluding funding gap) to

an agency based on the agencies annual work plans. 3 In case of agencies that are developing a presence in country, this data will be based on the years the agency actually had

resources at the country level. If it is the agencies first year with presence at the country level, only that first year’s resources will be counted. 4 Staff costs are costs in support of a UN staff posts for more than 6 months

4.7.2 Performance criteria A. Performance criteria

8-9-10

ASSESSMENT 6-7

1-5

Financial Resources Indicator Points 12

Delivery rates of previous programme cycle

Previous year 4th

quarter report and annual report indicate a delivery rate in the past year with >75% of the available annual work plan budget delivered by end of December

4

6 13

In the past year, the Task Teams financial disbursements in the context of the Joint AWP have been timely, jointly and qualitatively reported upon, each quarter and at the end of the year

2

Annual Deliverables Indicator Points 14

Annual Deliverables

Previous year 4th

quarter report1 and annual

report indicate at least 70% of the annual deliverables have been completed by the end of the annual programme cycle

4 4

Total number of priority points “Performance” category: 10

1 Should the resource allocation be a special allocation received outside the regular allocation timelines, the most recent

quarterly report will be sued as a basis

4.7.3 Programme priority based criteria

x

A. Programme Priority

8-10

ASSESSMENT 6-7

1-5

UN's key mandate areas Indicator Points 15

The results in the Joint Annual Work Plan for which the Request for Funding is submitted are based on key UN mandate areas as identified by UNDG -only relevant to Requests for Funding from Window 1: UN Country Programme-

The output in the Joint Annual Work Plan for which the Request for Funding is submitted include explicitly stated interventions that are directly linked to support accelerated progress towards achieving the MDGs

2

10

16 The output in the Joint Annual Work Plan for which the Request for Funding is submitted include explicitly stated interventions that are directly linked to deliverables aiming at advancing the Gender equality agenda

2

17 The output in the Joint Annual Work Plan for which the Request for Funding is submitted include explicitly stated interventions that are directly linked to deliverables aiming at environmental sustainability

2

18 The output in the Joint Annual Work Plan for which the Request for Funding is submitted include explicitly stated interventions that are directly linked to institutional, organizational or human Capacity Development initiatives targeted at government and Civil Society

2

19 The output in the Joint Annual Work Plan for which the Request for Funding is submitted include explicitly stated interventions that are directly linked to is demonstrably

1 analyzed and

developed in compliance with the Human Rights Based Approach, explicitly identifying and targeting rights holders and duty bearers

2

Total number of priority points “Programme Priority” category: 10

1 “Demonstrably” means the root cause analysis documents and other components of the HRBA approach as defined by the UN Staff College HRBA training are submitted as part of the Request for Proposal

Appendix 1: ToR UN Country Fund

I – Introduction

1. The Delivery as One process in Papua New Guinea was initiated in early 2006. It was in part based on the General Assemblies’ "Triennial comprehensive policy review (TCPR) of operational activities for development of the United Nations system", A/RES/59/ 250 of 17 December 2004. This resolution "stresses that the purpose of reform is to make the United Nations development system more efficient and effective" and "requests the funds and programmes and specialized agencies" to implement "joint offices". Twenty pilot countries have been identified for the ongoing TCPR joint offices initiative. Papua New Guinea is one of these Joint Office pilots.

2. The Delivery as One initiative in PNG comprises of the Five Ones, reflected in the Joint UN Country Strategy in PNG: One Country Programme (UNCP), UN Country Fund, One UN Operations, One Hause and One Voice. The interdependence between the nexus of the Five Ones in PNG is subscribed to by FAO, IFAD, ILO, OCHA, OHCHR, UNAIDS, UNDP, UNESCO, UNFPA, UN HABITAT, UNHCR, UNICEF, UNIFEM, UNV, and WHO, (hereafter referred to as the Participating UN Organizations). It is possible UN Organizations participating in the UN Country Programme prefer not to join, or join at a later stage. However, agencies can only decide to join once a year, after the annual review of the UN Country Programme. Only Participating Agencies can receive funds form the UN Country Fund.

3. In accordance with the PNG Commitment on Aid Effectiveness, the Delivery as One Initiative in PNG is being implemented in a collaborative manner under the strong leadership of the GoPNG. The Minister of National Planning and Monitoring (DNPM) approved the Agreed Principles, Objectives and Instruments to achieve One United Nations in July 2007.

4. In the context of the global One UN (”Delivering as One”) initiative, the UNDG ExCom Development Programmes and Funds agreed to strengthen the authority, responsibility and accountability of the Resident Coordinator (RC) function in relation to the UN Country Programme, common operations and advocacy.

5. The Terms of Reference of the Papua New Guinea UN Country Fund will be revised to reflect the dynamic nature of the Delivery as One process in PNG, particularly when new Agencies join the nexus of the Five Ones in PNG (as referred to in para 2 above).

II. Purpose and Principles of the PNG UN Country Fund

6. The objective of the PNG UN Country Fund is to support the coherent resource mobilization, allocation and disbursement of donor resources to the Joint UN Country Strategy under the direction of the Resident Coordinator. The result includes enhanced overview and management of UN development resources and reduced transaction costs for partners when supporting the UN.

7. The key driver of the UN Country Strategy is the UN Country Programme which reflects the programmatic focus of the UN System in PNG from 2008-2012. The UN Country Programme drives the remaining four other elements of the Joint UN Country Strategy, referred to as “Strategic Support” which includes the PNG UN Country Fund, One UN Operations, UN Haus and One Voice. Strategic support functions are defined as all non programmatic intervention aimed at delivering UN Programmes efficiently and effectively.

8. In line with the structure outlined under point 7, the UN Country Fund consists of two funding windows allowing partners to contribute to a particular type of UN activity in PNG. Each window has detailed results matrices underpinning the anticipated results and resource requirements of the results areas of that window: Window 1: Support to UN Country Programme 2008-2012 and Window 2: Strategic Support.

9. The PNG UN Country Fund conforms to the principles governing a pass-through arrangement as per the UNDG Joint Programme guidelines.

10. The PNG UN Country Fund is the proposed vehicle for further consolidation of country level funding mechanisms. All additional resources mobilized through the joint UN resource mobilization efforts and an increasing amount of agency non-core/other resources will be managed through the UN Country Fund. Agencies core/regular funds remain outside the UN Country Fund. In addition, the UN Country Fund will manage resource mobilized in support of new initiatives responding to emerging needs within the context of the Joint UN Country Strategy, as determined by the Resident Coordinator, Participating UN Organisations and GoPNG.

11. The PNG UN Country Fund, under the strategic leadership of the Resident Coordinator, is intended to facilitate the realization of Joint UN Country Strategy outcomes by strengthening the planning and coordination process, tying the funding allocation to the Joint UN Country Strategy and channeling funds towards the highest priority needs. The objectives of the activities to be financed by the PNG UN Country Fund are elaborated in the Joint UN Country Strategy. The PNG UN Country Fund is focused on ensuring funds are available for the Participating UN Organizations to respond to emerging and unforeseen circumstances thereby enhancing the flexibility and responsiveness of the UN system.

12. The PNG UN Country Fund will support partnership and communication between all stakeholders involved with Papua New Guinea development led by the GoPNG of Papua New Guinea. Information given to the press, to the beneficiaries of the Joint UN Country Strategy, all related publicity material, official notices, reports and publications, shall acknowledge the role of the GoPNG of Papua New Guinea, the UN and the donors.

III- Description of the PNG UN Country Fund

13. The PNG UN Country Fund shall be administered by the United Nations Development Programme, through its Multi-Donor Trust Fund Office (UNDP/MDTF Office), as Administrative Agent, on behalf of the Participating UN Organizations and the Resident Coordinator as agreed with the GoPNG. The UNDP/MDTF Office will administer the PNG UN Country Fund in accordance with its Regulations and Rules. It will perform the full range AA-functions as per MOU and SAA, and will do so in accordance with the UNDG-agreed “Protocol on the Administrative Agent for Multi-Donor Trust Funds, Joint Programmes and UN Country Funds”.

Contributions to the PNG UN Country Fund

14. Contributions to the PNG UN Country Fund may be accepted from governments of Member States of the United Nations or from intergovernmental or non-governmental organisations, or from private sources.


Acceptance of funds from the private sector will be guided by criteria stipulated in the UN system-wide guidelines for cooperation between the UN and the Business Community (the UN Secretary General’s guidelines http://www.un.org/partners/business/otherpages/guide.htm).

15. In support of the overarching aim of the PNG UN Country Fund, and to ensure maximum flexibility and adaptation to national priorities, a guiding principle for resource mobilization would be that donors are encouraged to contribute with multi-year pooled/ unearmarked resources. Earmarking is discouraged and donors are asked to contribute un-earmarked funds to the degree possible. Only in highly exceptional cases and after consultation and approval of the Programme Steering Committee and/or the UNCT earmarking will be allowed.

16. Contributions to the PNG UN Country Fund may be accepted in fully convertible currency. Such contributions shall be deposited in the bank accounts designated by the UNDP/MDTF Office. The value of a contribution-payment, if made in other than United States dollars, shall be determined by applying the United Nations operational rate of exchange in effect on the date of payment.

17. As the Administrator of the PNG UN Country Fund, the UNDP/MDTF Office will be responsible for receiving all donor contributions in the PNG UN Country Fund Account established for this purpose, and in turn, will make contribution-payments to the respective Participating UN Organizations as soon as possible after the donor funds and instructions from the RC are received.

18. The Participating UN Organizations will sign a standardized Memorandum of Understanding (MoU) with the UNDP/MDTF Office (attached as Annex 2), setting out the terms and conditions under which the UNDP/MDTF Office would work as Administrative Agent; the Participating UN Organizations would receive and use funds from the Fund account, as well as the functions and responsibilities of the Joint GoPNG/UN Steering Committee, the UNCT and the Resident Coordinator.

19. Each donor will sign a Standardized Administrative Arrangement (SAA) with the UNDP/MDTF Office as Administrative Agent (attached as Annex 3), setting out the terms and conditions governing receipt and administration of the contributions. Each donor needs to clearly identify in its contribution whether the contribution is in support of the first window of the UN Country Fund (UN Country Programme) or the second window (Strategic Support). Please refer to the UN Country Fund proposal for further details on the two funding windows.

Utilization of the PNG UN Country Fund

20. The PNG UN Country Fund will be utilized for the purpose of meeting the un(der)funded costs of initiatives, including new initiatives responding to emerging needs, under the Joint UN Country Strategy. Details of such initiatives, including the respective budgets and implementation partners, will be set out in the results matrices underpinning the Joint UN Country Strategy and the relevant joint Annual Work Plan, programme or project documents.

21. NGO partners involved in the UN Country Programme will have access to the PNG UN Country Fund through the Participating UN Organizations. The Participating UN Organization will utilise their standard NGO cooperation modalities for this purpose and charge the corresponding direct and indirect costs to the PNG UN Country Fund on the basis of its financial regulations and rules.

http://www.un.org/partners/business/otherpages/guide.htm

22. In conformity with the UNDG Guidelines on Joint Programming, the Administrative Agent and the Participating UN Organizations will be entitled to deduct their indirect costs on contributions received. The Administrative Agent’s administrative fee will be 1%. The fee will be deducted from the contributions to the PNG UN Country Fund at the time they are deposited. The indirect costs of the Participating UN Organizations will be maximum 7%.

IV- Governance Arrangements

23. The governance of the “PNG UN Country Fund” is decentralized to the country level and includes the GoPNG and the Participating UN Organizations/Agencies.

24. The overall management of the PNG UN Country Fund will be with the Programme Steering Committee and the UNCT, under the leadership of the RC.

25. The Resident Coordinator will be responsible for:

Strategic leadership of the PNG UN Country Fund on the basis of the “PNG UN Country Programme

2008-2012” and the results framework of the other four Delivery as One elements (UN Country Fund,

UN Operations, UN Haus and UN Communications and advocacy);

Engaging in Joint Resource Mobilization for the PNG UN Country Fund in collaboration with

Participating UN Organizations;

(S)he will be responsible for ensuring the documentation of the allocation process including the

rationale for these decisions. Implementation of activities funded by the resources of the UN Country

Fund will be the responsibility of the Head of Participating UN Organizations. The RC will hold Head of

Participating UN Organizations accountable for their agency/organization’s components of the results

of initiatives funded through the UN Country Fund;

Ensuring consolidated PNG UN Country Fund level reporting, including to donors, based on reports

from Participating Organizations and support from the Administrative Agent (ref below) and the UN

Resident Coordinators Office.

26. Work plan implementation will be the responsibility of the Head of participating UN Organizations. The RC will hold Head of participating UN Organizations accountable for their agency components of the results of initiatives funded through the PNG UN Country Fund.

27. The Joint GoPNG/UN Steering Committee consists of the GoPNG of Papua New Guinea and the Heads of Participating UN Organizations. The Committee is jointly chaired by the UN Resident Coordinator and GoPNG, with membership consisting of UNCT members and relevant line ministries.

28. Governance arrangements for UN Country Fund:

The GoPNG/UN Programme Steering Committee sets the high level priority thematic

areas at the yearly Programme Steering Committee Meeting.

Resources are allocated by the Programme Steering Committee and the UNCT, under

the leadership of the RC.

The AA will transfer resource after receiving explicit instructions from the Resident

Coordinator.

29. The GoPNG/UN Steering Committee and the UNCT will recommend allocation of PNG UN Country Fund resources in accordance with agreed procedures and following the agreed upon allocation criteria

34. In support of

the allocation process, the GoPNG/UN Steering Committee can seek inputs from Inter-Agency Task Teams, and/or establish ad hoc sub-committees to deal with emerging issues, as appropriate.

The Administrative Agent

30. The UNDP MDTF Office’s responsibilities as Administrative Agent will include the following:

Receipt, administration and management of contributions from Donors;

Disbursement of funds to Participating UN Organizations, in accordance with instructions of the Resident Coordinator, on behalf of the Steering Committee and in accordance with the approved Annual Work Plans;

Provision of consolidated narrative and financial reports on the PNG UN Country Fund Account to the Resident Coordinator, Steering Committee, UNCT and Donors, based on progress reports received from Participating UN Organizations, in accordance with the reporting schedule specified in VII.

In line with the MOU between Participating UN Organizations and the Administrative Agent, a clear delineation, including distinct reporting lines and an accountability framework, has been established and will be maintained within UNDP between its functions as an Administrative Agent and its functions as a Participating UN Organization.

Support services provided by the UN Resident Coordinators Office35

31. The UN Resident Coordinators Office is responsible for support to the strategic leadership role of the Resident Coordinator for the PNG UN Country Fund. It will provide support in all the designated tasks for the Resident Coordinator under paragraph 22 above. Drawing on the consolidated reports from the Administrative Agent, the UN Resident Coordinators Office will provide strategic focus by providing analysis of resource requirements, funding gaps, resource mobilization efforts, advice on resource allocations and analysis of progress and lessons to be learned for future programme implementation to the RC, UNCT and GoPNG/UN Steering Committee. It will circulate the finalised annual consolidated report on the PNG UN Country Fund to the Joint GoPNG/UN Steering Committee and UNCT for consultation. The UN Resident Coordinators Office will ensure that these reports are distributed to all donors contributing to the Fund and maintain an appropriate level of fund information to ensure transparency.

34 Ref section 8, “PNG_UN Budgetary Framework_Final_Signed_June 2009 V2.doc” 35

Arrangements listed below are considered a minimum standard necessary for the RC to effectively carry out his/her responsibilities in the context of the One UN Country Fund. Additional staff may be required to maintain UNCO’s service delivery levels

32. A focal point designated within the UN Resident Coordinators Office will be dedicated to supporting the quality assurance of the PNG UN Country Fund. The costs of this support will be charged directly to the PNG UN Country Fund Account, in accordance with the provisions of the MOU and SAA.

V. Monitoring and Evaluation

33. Monitoring and Evaluation of the initiatives funded under the PNG UN Country Fund will follow Standard Monitoring and Evaluation procedures described in the UN Country Programme and Joint UN Country Strategy document.

34. Donors, the Resident Coordinator, the Administrative Agent and the Participating UN Organizations will hold annual consultations, as appropriate, to review the status of the PNG UN Country Fund. These reviews will be part of the Annual Progress Reviews of the Joint UN Country Strategy.

35. In addition, the joint GoPNG/UN may commission a regular, independent lessons-learned and review exercise relating to the operations and management of the PNG UN Country Fund.

VI – Audit

36. Agency specific auditing will be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of the respective Participating UN.

37. The activities of the Administrative Agent will be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of UNDP.

VII- Reporting

38. Reporting requirements leverage to the maximum extent existing reporting structures in place as part of the quarterly and annual reviews of the UN Country Strategy and the Joint UN Country Strategy.

39. Each Participating UN Organization shall provide the Administrative Agent with the following statements and reports prepared in accordance with a harmonised accounting and reporting procedures applicable to the Participating UN Organization concerned:

(a) Annual narrative progress reports, to be provided no later than three months (31 March) after the end of the calendar year;

(b) Annual financial statements and reports as of 31 December with respect to the funds disbursed to it from the PNG UN Country Fund Account, to be provided no later than four months (30 April) after the end of the calendar year;

(c) Final narrative reports, after the completion of the activities in the Joint UN Country Strategy and including the final year of the activities in the Joint UN Country Strategy, to be provided no later than four months (30 April) of the year following the financial closing of the Joint UN Country Strategy. The final report will give a summary of results and achievements compared to the goals and objectives of the Joint UN Country Strategy; and

(d) Certified final financial statements and final financial reports after the completion of the activities in the Joint UN Country Strategy and including the final year of the activities in the Joint UN Country Strategy, to be provided no later than six months (30 June) of the year following the financial closing of the Joint UN Country Strategy.

40. In line with Papua New Guinea’s Commitment on Aid Effectiveness, until such a time that a harmonised reporting format and procedure is mutually agreed and accepted by GoPNG and Participating UN Organizations, the Participating UN Organizations will utilise for financial reporting the six categories agreed by UNDG

36.

40. The Administrative Agent will prepare consolidated narrative progress and financial reports, based on the reports referred to in paragraph 1 above and will provide (a) and (b) by 31 May and(c) and (d) by 31 July to the GoPNG/UN Steering Committee, Participating UN Organizations and to each Donor that has contributed to the PNG UN Country Fund, in accordance with the timetable established in the Standard Administrative Arrangement.

41. The Administrative Agent will also provide the GoPNG/UN Steering Committee, Participating UN Organizations and Donors with the following statements on its activities as Administrative Agent:

a. Certified annual financial statement (“Source and Use of Funds”) to be provided no later than

five months (31 May) after the end of the calendar year; and b. Certified final financial statement (“Source and Use of Funds”) to be provided no later than seven

months (31 July) of the year following the financial closing of the PNG UN Country Fund.

42. Consolidated PNG UN Country Fund reporting and documentation, including agreements, will be posted on www.oneun.pg.org, as well as on the on the website of the Administrative Agent (www.undp.org/mdtf).

VIII – Public Disclosure

The RC and the Administrative Agent will ensure that decisions regarding the review and

approval of programmes funded under the PNG UN Country Fund, as well as periodic

reports on the progress of implementation of such programmes and associated external

evaluation reports, are posted for public information on www.oneun.pg.org, as well as

on the on the website of the Administrative Agent (www.undp.org/mdtf). Website

postings may also include a record of decisions of the SC, as appropriate, summary

sheets of approved programmes and projects, fund level financial and progress reports,

and external evaluation reports, including relevant information on the operations of the

PNG UN Country Fund.

IX – Termination of the PNG UN Country Fund

43. The PNG UN Country Fund will be established following the signature of the Memorandum of Understanding between the Participating UN Organizations and the Administrative Agent and the signature of the first Standardized Administrative Arrangement (SAA) between the Administrative Agent and a Donor. . The PNG UN

36

http://www.oneun.pg.org/

http://www.oneun.pg.org/

Country Fund will terminate upon completion of all programmes funded through the PNG UN Country Fund and after satisfaction of all commitments and liabilities. Notwithstanding the completion of the initiatives financed from the PNG UN Country Fund, any unutilized balances will continue to be held in the PNG UN Country Fund Account until all commitments and liabilities incurred in implementation of the programmes have been satisfied and programme activities have been brought to an orderly conclusion.

44. Any balance remaining in the PNG UN Country Fund Account or in the individual Participating UN Organizations’ separate ledger accounts will be used for a purpose mutually agreed upon by the Donors, the UNCT and the Administrative Agent.

Appendix 2: Memorandum of Understanding (Signed) UN

Country FUnd

Memorandum of Understanding

between

Participating UN Organizations and

the United Nations Development Programme

regarding the Operational Aspects of

Papua New Guinea UN Country Fund

WHEREAS, the Participating United Nations Organizations signing this Memorandum of Understanding (hereinafter referred to collectively as the “Participating UN Organizations”) have developed a Papua New Guinea UN Country Fund starting on *1st June 2009+ and ending on *31st December 2012+ (hereinafter referred to as the “Fund”), as may be amended from time to time, as part of their respective development cooperation with the Government of Papua New Guinea, as more fully described in the Terms of Reference of the Fund dated [June 2009], (hereinafter referred to as the “TOR”), a copy of which is attached hereto as ANNEX A, and have agreed to establish a coordination mechanism (hereinafter referred to as the “Programme Steering Committee”) to facilitate the effective and efficient collaboration between the Participating UN Organizations and the host Government (if applicable) for the implementation of the Fund; WHEREAS, the Participating UN Organizations have agreed that they should adopt a coordinated approach to collaboration with donors who wish to support the implementation of the Fund and have developed a TOR to use as the basis for mobilising resources for the Fund, and have further agreed that they should offer donors the opportunity to contribute to the Fund and receive reports on the Fund through a single channel; and WHEREAS, the Participating UN Organizations have further agreed to ask the United Nations Development Programme (which is also a Participating UN Organization in connection with this Fund) to serve as the administrative interface between the donors and the Participating UN Organizations and for these purposes the United Nations Development Programme has agreed to do so in accordance with this Memorandum of Understanding. NOW, THEREFORE, the Participating UN Organizations and the United Nations Development Programme (hereinafter referred to collectively as the “Participants”) hereby agree as follows:

Section I

Appointment of Administrative Agent; its Status, Duties and Fee

1. The Participating UN Organizations hereby appoint the United Nations Development Programme (hereinafter referred to as the “Administrative Agent”) to serve as their Administrative Agent in connection with the Fund, in accordance with the terms and conditions set out in this Memorandum of Understanding. The Administrative Agent accepts this appointment on the understanding that the Participating UN Organizations

assume full programmatic and financial accountability for the funds disbursed to them by the Administrative Agent. This appointment will continue until it expires, or is terminated, in accordance with Section VIII below.

2. On behalf of the Participating UN Organizations, the Administrative Agent will:

(a) Receive contributions from donors that wish to provide financial support to the Fund;

(b) Administer such funds received, in accordance with this Memorandum of Understanding including the provisions relating to winding up the Fund Account and related matters;

(c) Subject to availability of funds, disburse such funds to each of the Participating UN Organizations in accordance with instructions from the Programme Steering Committee, taking into account the budget set out in the approved programmatic document

37/, as amended in writing from time

to time by the Programme Steering Committee;

(d) Consolidate statements and reports, based on submissions provided to the Administrative Agent by each Participating UN Organization, as set forth in the TOR, and provide these to each donor that has contributed to the Fund Account and to the Programme Steering Committee;

(e) Provide final reporting, including notification that the Fund has been fully expended or has been wound up in accordance with the Fund TOR, in accordance with Section IV below;

(f) Disburse funds to any Participating UN Organization for any additional costs of the task that the Programme Steering Committee may decide to allocate (as referred to in Section I, Paragraph 3) in accordance with TOR.

3. The Programme Steering Committee may request any of the Participating UN Organizations, to perform additional tasks in support of the Fund not related to the Administrative Agent functions detailed in Section I, Paragraph 2 above and subject to the availability of funds. Costs for such tasks will be agreed in advance and with the approval of the Programme Steering Committee be charged to the Fund as direct costs.

4. The Administrative Agent will enter into a Standard Administrative Arrangement, in the form attached hereto as ANNEX B (hereinafter referred to as an “Administrative Arrangement”), with each donor that wishes to provide financial support to the Fund through the Administrative Agent. The Administrative Agent will not agree with the Donor to amend the terms of Annex B without prior written agreement of the Participating UN Organizations. The Administrative Agent will ensure the posting of a copy of the Administrative Arrangement it enters into, as well as information on donor contributions, on the website of the Administrative Agent (www.undp.org/mdtf), as well as the website of the UN in Papua New Guinea (www.oneun.org.pg), as appropriate.

37 As used in this document, an approved programmatic document refers to an annual work plan or a programme/project document, etc., which is approved by the Programme Steering Committee for fund allocation purposes.

5. None of the Participating UN Organizations will be responsible for the acts or omissions of the

Administrative Agent or its personnel, or of persons performing services on its behalf, except in regard to its

respective contributory acts or omissions. With respect to contributory acts or omissions of the Participating UN

Organizations, the resulting responsibility will be apportioned among them or any one of them to the extent of

such contributory acts or omissions, or as may otherwise be agreed. In addition, donors will not be directly

responsible for the activities of any person employed by the Participating UN Organizations or the Administrative

Agent as a result of this Memorandum of Understanding.

6. The Administrative Agent will be entitled to allocate an administrative fee of one percent (1%) of the

amount contributed by each donor signing an Administrative Arrangement, to meet the Administrative Agent’s

costs of performing the Administrative Agent’s functions described in this Memorandum of Understanding.

7. Where the Administrative Agent is also a Participating UN Organization, a clear delineation, including

distinct reporting lines and an accountability framework, will be established and maintained within the

organization designated as the Administrative Agent between its functions as an Administrative Agent and its

functions as a Participating UN Organization.

Section II

Financial Matters

The Administrative Agent

1. The Administrative Agent will establish a separate ledger account under its financial regulations and rules for the receipt and administration of the funds received pursuant to Administrative Arrangement (hereinafter, the “Fund Account”). The Fund Account will be administered by the Administrative Agent in accordance with the regulations, rules, directives and procedures applicable to it, including those relating to interest. The Fund Account will be subject exclusively to the internal and external auditing procedures laid down in the financial regulations, rules, directives and procedures applicable to the Administrative Agent.

2. The Administrative Agent will not absorb gains or losses on currency exchanges which will increase or decrease the funds available for disbursements to Participating UN Organizations.

3. Subject to the availability of funds, the Administrative Agent will make disbursements from the Fund Account based on instructions from the Programme Steering Committee, in line with the budget set forth in the approved programmatic document, as amended from time to time by the Programme Steering Committee. The disbursements will consist of direct and indirect costs as set out in the budget.

4. The Administrative Agent will normally make each disbursement within three (3) to five (5) business days after receipt of the relevant approved programmatic document, in accordance with the instructions received from the Programme Steering Committee in line with the TOR, along with a copy of the relevant approved programmatic document, signed by all the parties concerned. The Administrative Agent will transfer funds to each Participating UN Organization through wire transfer. Each Participating UN Organization will advise the Administrative Agent in writing of the bank account for transfers pursuant to this Memorandum of Understanding. When making a transfer to a Participating UN Organization, the Administrative Agent will notify that Participating UN Organization’s Treasury Operations of the following: (a) the amount transferred, (b) the value date of the transfer; and (c) that the transfer is from the United Nations Development Programme in respect of the Fund in Papua New Guinea pursuant to this Memorandum of Understanding.

5. Where the balance in the Fund Account on the date of a scheduled disbursement is insufficient to make that disbursement, the Administrative Agent will consult with the Programme Steering Committee and make a disbursement, if any, in accordance with the Programme Steering Committee’s instructions.

The Participating UN Organizations

6. Each Participating UN Organization will establish a separate ledger account under its financial regulations and rules for the receipt and administration of the funds disbursed to it by the Administrative Agent from the Fund Account. That separate ledger account will be administered by each Participating UN Organization in accordance with its own regulations, rules, directives and procedures, including those relating to interest. That separate ledger account will be subject exclusively to the internal and external auditing procedures laid down in the financial regulations, rules, directives and procedures applicable to the Participating UN Organization concerned.

7. Each Participating UN Organization will use the funds disbursed to it by the Administrative Agent from the Fund Account to carry out the activities for which it is responsible as set out in the approved programmatic document, as well as for its indirect costs. The Participating UN Organizations will commence and continue to conduct operations for the programmatic activities only upon receipt of disbursements as instructed by the Programme Steering Committee. The Participating UN Organizations will not make any commitments above the approved budget in the approved programmatic document, as amended from time to time by the Programme Steering Committee. If there is a need to exceed the budgeted amount, the Participating UN Organization concerned will submit a supplementary budget request to the Programme Steering Committee.

8. Indirect costs of the Participating UN Organizations recovered through programme support costs will be 7%. In accordance with the UN General Assembly resolution 62/208 (2007 Triennial Comprehensive Policy Review principle of full cost recovery), all other costs incurred by each Participating UN Organization in carrying out the activities for which it is responsible under the Fund will be recovered as direct costs.

Section III

Activities of the Participating UN Organizations

1. The implementation of the programmatic activities will be the responsibility of the Participating UN

Organizations and will be carried out by each Participating UN Organization in accordance with its applicable

regulations, rules, directives and procedures. On the termination or expiration of this Memorandum of

Understanding, the matter of ownership of supplies and equipment will be determined in accordance with the

regulations, rules, directives and procedures applicable to such Participating UN Organizations, including, where

applicable, any agreement with the relevant host Government.

2. Any modifications to scope of the approved programmatic document, including as to their nature,

content, sequencing or the duration thereof will be subject to mutual agreement in writing between the relevant

Participating UN Organization and the Programme Steering Committee. The Participating UN Organization will

promptly notify the Administrative Agent through the Programme Steering Committee, of any change in the

budget as set out in the programmatic document.

3. Where a Participating UN Organization wishes to carry out its programmatic activities through or in

collaboration with a third party, it will be responsible for discharging all commitments and obligations with such

third parties, and no other Participating UN Organization, nor the Administrative Agent, will be responsible for

doing so.

4. In carrying out their programmatic activities, none of the Participating UN Organizations will be

considered as an agent of any of the others and, thus, the personnel of one will not be considered as staff

members, personnel or agents of any of the others. Without restricting the generality of the preceding sentence,

none of the Participating UN Organizations will be liable for the acts or omissions of the other Participating UN

Organizations or their personnel, or of persons performing services on their behalf.

5. Each Participating UN Organization will advise the Administrative Agent in writing when all activities for

which it is responsible under the approved programmatic document have been completed.

6. The Participating UN Organizations recognize that the donors reserve the right to discontinue future

contributions if reporting obligations are not met as set forth in the Administrative Arrangement; or if there are

substantial deviations from agreed plans and budgets. If it is agreed among the donor(s), the Administrative Agent

and the concerned Participating UN Organization under the Administrative Arrangement that there is evidence of

improper use of funds, the Participating UN Organization will use its best efforts, consistent with its regulations,

rules, policies and procedures to recover any funds misused. The Participating UN Organization will, in consultation

with the Programme Steering Committee and the Administrative Agent, credit any funds so recovered to the Fund

Account or agree with the Programme Steering Committee to use these funds for a purpose mutually agreed upon.

Before withholding future contributions or requesting recovery of funds and credit to the Fund Account, the

Administrative Agent, the concerned Participating UN Organization and the donor will consult with a view to

promptly resolving the matter.

7. The Participating UN Organizations recognize that it is important to take all necessary precautions to avoid corrupt, fraudulent, collusive or coersive practices. To this end, each Participating UN Organization will maintain standards of conduct that govern the performance of their staff, including the prohibition of corrupt, fraudulent, collusive or coersive practices, in connection with the award and administration of contracts, grants, or other benefits, as set forth in their Staff Regulations and Rules and Financial Regulations and Rules, including regarding procurement. In the event that a Participating UN Organization determines that an allegation in relation to the implementation of activities – including that corrupt, fraudulent, collusive or coercive practices may have taken place - is credible enough to warrant an investigation, it will promptly notify the Programme Steering Committee and the Administrative Agent, to the extent that such notification does not jeopardize the conduct of the investigation. The allegation will be dealt with in accordance with the Participating UN Organization’s accountability and oversight framework and by the Participating UN Organization’s unit in charge of investigations. Upon completion of the investigation, the Participating UN Organization will inform the Programme Steering Committee and the Administrative Agent about the results of the investigation.

8. As an exceptional measure, particularly during the start up phase of the Fund, subject to conformity with

their financial regulations, rules and directives, Participating UN Organizations may elect to start implementation

of programmatic activities in advance of receipt of initial or subsequent transfers from the Fund Account by using

their own resources. Such advance activities will be undertaken in agreement with the Programme Steering

Committee on the basis of funds it has allocated or approved for implementation by the particular Participating UN

Organization following receipt by the Administrative Agent of an official commitment form or signature of the

Administrative Arrangements by donors contributing to the Fund. Participating UN Organizations will be solely

responsible for decisions to initiate such advance activities or other activities outside the parameters set forth

above.

Section IV

Reporting

1. Each Participating UN Organization will provide the Administrative Agent with the following statements

and reports prepared in accordance with the accounting and reporting procedures applicable to the Participating

UN Organization concerned, as set forth in the TOR. The Participating UN Organizations will endeavour to

harmonize their reporting formats to the extent possible.

(e) Annual narrative progress reports, to be provided no later than three months (31 March) after the end of the calendar year;

(f) Annual financial statements and reports as of 31 December with respect to the funds disbursed to it from the Fund Account, to be provided no later than four months (30 April) after the end of the calendar year;

(g) Final narrative reports, after the completion of the activities in the approved programmatic document and including the final year of the activities in the approved programmatic document,

to be provided no later than four months (30 April) of the year following the financial closing of the Fund. The final report will give a summary of results and achievements compared to the goals and objectives of the Fund; and

(h) Certified final financial statements and final financial reports after the completion of the activities in the approved programmatic document and including the final year of the activities in the approved programmatic document, to be provided no later than six months (30 June) of the year following the financial closing of the Fund.

2. The Administrative Agent will prepare consolidated narrative progress and financial reports,

based on the reports referred to in paragraph 1 (a) to (d) above, and will provide those consolidated

reports to each donor that has contributed to the Fund Account, as well as the Programme Steering

Committee, in accordance with the timetable established in the Administrative Arrangement.

3. The Administrative Agent will also provide the donors, Programme Steering Committee and

Participating UN Organizations with the following statements on its activities as Administrative Agent:

(a) Certified annual financial statement (“Source and Use of Funds” as defined by UNDG guidelines)

to be provided no later than five months (31 May) after the end of the calendar year; and

(b) Certified final financial statement (“Source and Use of Funds”) to be provided no later than seven

months (31 July) of the year following the financial closing of the Fund.

4. Consolidated reports and related documents will be posted on the websites of the UN in Papua

New Guinea (www.oneun.org.pg) and the Administrative Agent (www.undp.org/mdtf).

Section V

Monitoring and Evaluation

1. Monitoring and evaluation of the Fund will be undertaken in accordance with the provisions

contained in the TOR, which are consistent with the respective regulations, rules and procedures of the

Participating UN Organizations.

2. The donor(s), the Administrative Agent and the Participating UN Organizations will hold annual

consultations, as appropriate, to review the status of the Fund.

Section VI

Audit

1. The Administrative Agent and Participating UN Organizations will be audited in accordance with their own

Financial Regulations and Rules. The Internal Audit Services (IAS) of each Participating UN Organization will

prepare a summary of the internal audit reports on activities related to the Papua New Guinea UN Country

Fund at intervals agreed upon between the IAS of Participating UN Organizations and of the Administrative

Agent. The IAS of each Participating UN Organization will share its summary with its Representative in Papau

New Guinea Country Office, who will then share it with the Programme Steering Committee.

Section VII

Joint Communication

1. Each Participating UN Organization will take appropriate measures to publicize the Fund and to give due credit

to the other Participating UN Organizations. Information given to the press, to the beneficiaries of the Fund,

all related publicity material, official notices, reports and publications, will acknowledge the role of the host

Government, the donors, the Participating UN Organizations, the Administrative Agent and any other relevant

entities. In particular, the Administrative Agent will include and ensure due recognition of the role of each

Participating UN Organization and national partner in all external communications relating to the Fund.

2. The Administrative Agent in consultation with the Participating UN Organizations will ensure that decisions

regarding the review and approval of the Fund as well as periodic reports on the progress of implementation

of the Fund, associated external evaluation are posted, where appropriate, for public information on the

websites of UN in Papau New Guinea (www.oneun.org.pg) and the Administrative Agent

(www.undp.org/mdtf). Such reports and documents may include Programme Steering Committee approved

programmes and programmes awaiting approval, fund level annual financial and progress reports and external

evaluations, as appropriate.

Section VIII

Expiration, Modification and Termination

1. This Memorandum of Understanding will expire upon winding up of the Fund, subject to the continuance

in force of paragraph 5 below for the purposes therein stated.

2. This Memorandum of Understanding may be modified only by written agreement between the

Participants.

3. Any of the Participating UN Organizations may withdraw from this Memorandum of Understanding upon

giving thirty (30) days’ written notice to all other Participants to this Memorandum of Understanding subject

to the continuance in force of paragraph 5 below for the purpose therein stated.

4. The Administrative Agent’s appointment may be terminated by the Administrative Agent (on the one

hand) or by the mutual agreement of all Participating UN Organizations (on the other hand) on thirty (30)

days’ written notice to the other party, subject to the continuance in force of paragraph 5 below for the

purpose therein stated. In the event of such termination, the Participants will agree on measures to bring all

activities to an orderly and prompt conclusion so as to minimize costs and expense.

5. Commitments assumed by the withdrawing or terminating Participants under this Memorandum of

Understanding will survive the expiration or termination of this Memorandum of Understanding or the

termination of the Administrative Agent or withdrawal of a Participating UN Organization to the extent

necessary to permit the orderly conclusion of the activities and the completion of final reports, the withdrawal

of personnel, funds and property, the settlement of accounts between the Participants hereto and the

settlement of contractual liabilities that are required in respect of any subcontractors, consultants or

suppliers. Any balance remaining in the Fund Account or in the individual Participating UN Organizations’

separate ledger accounts upon winding up of the Fund will be used for a purpose mutually agreed upon or

returned to the donor(s) in proportion to their contribution to the Fund as agreed upon by the donors and the

Programme Steering Committee.

Section IX

Notices

1. Any action required or permitted to be taken under this Memorandum of Understanding may be taken on

behalf of the Administrative Agent by the Executive Coordinator, Multi-Donor Trust Fund (MDTF) Office, or his

or her designated representative, and on behalf of a Participating UN Organization by the head of office in

Papua New Guinea, or his or her designated representative.

2. Any notice or request required or permitted to be given or made in this Memorandum of Understanding

will be in writing. Such notice or request will be deemed to be duly given or made when it will have been

delivered by hand, mail or any other agreed means of communication to the party to which it is required to be

given or made, at such party's address specified in ANNEX C to this Memorandum of Understanding or at such

other address as the party will have specified in writing to the party giving such notice or making such request.

Section X

Entry into Effect

This Memorandum of Understanding will come into effect upon signature by authorized officials of the

Participants and will continue in full force and effect until it is expired or terminated.

Section XI

Settlement of Disputes

1. The Participants will use their best efforts to promptly settle through direct negotiations any dispute,

controversy or claim arising out of or in connection with this Memorandum of Understanding or any breach

thereof. Any such dispute, controversy or claim which is not settled within sixty (60) days from the date either

party has notified the other party of the nature of the dispute, controversy or claim and of the measures

which should be taken to rectify it, will be resolved through consultation between the Executive Heads of each

of the Participating UN Organizations and of the Administrative Agent.

Kyle F. Ward

Chief, Programme Support and Management

Services

Office of the High Commissioner for Human

Rights (OHCHR)

Appendix 3: Standard Administrative Agreement for Donors UN

Country Fund

PAPUA NEW GUINEA UN COUNTRY FUND

Standard Administrative Arrangement

between

[Name of Donor]

and

the United Nations Development Programme

WHEREAS, Participating United Nations Organizations that have signed a Memorandum of Understanding (hereinafter referred to collectively as the “Participating UN Organizations”) have developed the Papua New Guinea UN Country Fund (hereinafter referred to as the “PNG UN Country Fund”) starting on 1st of June 2009 and ending on the 31st of December 2012, as may be amended from time to time, in support of the Joint UN Country Strategy and the Papua New Guinea UN Country Programme as part of their respective development cooperation with the Government of Papua New Guinea, as more fully described in the Terms of Reference of the PNG UN Country Fund (hereinafter referred to as the “TOR”), a copy of which is attached hereto as ANNEX A, and have agreed to establish a coordination mechanism (hereinafter referred to as the “Programme Steering Committee”) that, together with the United Nations Country Team (hereinafter referred to as the “UNCT”), will facilitate the effective and efficient collaboration between the Participating UN Organizations and the host Government for the implementation of the PNG UN Country Fund; WHEREAS, the Participating UN Organizations have agreed that they should adopt a coordinated approach to collaboration with donors who wish to support the implementation of the PNG UN Country Fund and have developed a TOR to use as the basis for mobilising resources for the PNG UN Country Fund, and have further agreed that they should offer donors the opportunity to contribute to the PNG UN Country Fund and receive reports on the PNG UN Country Fund through a single channel; and WHEREAS, the Participating UN Organizations have appointed the United Nations Development Programme (hereinafter referred to as the “Administrative Agent”) (which is also a Participating UN Organisation in connection with the PNG UN Country Fund) in a Memorandum of Understanding (hereinafter referred to as “MOU”) concluded between, the Administrative Agent and Participating UN Organizations on 5th of June 2009, to serve as their administrative interface between donors and the Participating UN Organizations for these purposes. To that end the Administrative Agent has established a separate ledger account under its financial regulations and rules for the receipt and administration of the funds received from donors who wish to provide financial support to the PNG UN Country Fund through the Administrative Agent (hereinafter referred to as the “PNG UN Country Fund Account”); and WHEREAS, [Name of Donor] (hereinafter referred to as the “Donor”) wishes to provide financial support to the PNG UN Country Fund on the basis of the TOR as part of its development cooperation with the Government of Papua New Guinea and wishes to do so through the Administrative Agent as proposed by the Participating UN Organizations.

NOW, THEREFORE, the Donor and the Administrative Agent (hereinafter referred to collectively as the “Participants”) hereby decide as follows:

Section I

Disbursement of Funds to the Administrative Agent

and the PNG UN Country Fund Account

1. The Donor decides to make a contribution of [amount in words] ([amount in figures]) and such further amounts as it may decide (hereinafter referred to as the “Contribution”) to support the PNGUN Country Fund. The Contribution will enable the Participating UN Organizations to support the PNGUN Country Fund in accordance with the TOR, as amended from time to time in writing by the Programme Steering Committee. The Donor authorizes the Administrative Agent to use the Contribution for the purposes of the PNGUN Country Fund and in accordance with this Standard Administrative Arrangement (hereinafter referred to as ‘‘Arrangement’’). The Donor acknowledges that, when the contribution is un-earmarked, the Contribution will be co-mingled with other contributions to the PNGUN Country Fund Account and that it will not be separately identified or administered.

2. The Donor will deposit the Contribution by wire transfer, in accordance with the schedule of payments set out in ANNEX B to this Arrangement, in convertible currencies of unrestricted use, to the following account:

Bank Name: JPMorgan Chase Bank

Address: International Agencies Banking

270 Park Avenue, 43rd

Floor

New York, New York 10017

Account Name: UNDP Multi-Donor Trust Fund Office (USD) Account

Account Number: 790440309

SWIFT Code: CHASUS33

ABA: 021000021

Reference: Papua New Guinea UN Country Fund Account

3. When making a transfer to the Administrative Agent, the Donor will notify the Administrative Agent’s Treasury Operations at [email protected] and the MDTF Office at [email protected] of the following: (a) the amount transferred, (b) the value date of the transfer; (c) that the transfer is from [name of Donor] in respect of the PNG UN Country Fund pursuant to this Arrangement;

4. All financial accounts and statements will be expressed in United States dollars.

5. The US dollar value of a contribution-payment, if made in currencies other than United States dollars, will

be determined by applying the United Nations operational rate of exchange in effect on the date of receipt of the

mailto:[email protected]

mailto:[email protected]

Contribution. The Administrative Agent will not absorb gains or losses on currency exchanges. Such amounts will

increase or decrease the funds available for disbursements to Participating UN Organizations.

6. The PNG UN Country Fund Account will be administered by the Administrative Agent in accordance with

the regulations, rules, directives and procedures applicable to it, including those relating to interest. The PNG UN

Country Fund Account will be subject exclusively to the internal and external auditing procedures laid down in the

financial regulations, rules, directives and procedures applicable to the Administrative Agent.

7. The Administrative Agent will be entitled to allocate an administrative fee of one percent (1%) of the

Contribution by the Donor, to cover the Administrative Agent’s costs of performing the Administrative Agent’s

functions.

8. The Programme Steering Committee may request any of the Participating UN Organizations, to perform

additional tasks in support of the PNG UN Country Fund not related to the Administrative Agent functions detailed

in Section I, Paragraph 2 of the Memorandum of Understanding and subject to the availability of funds. In this

case, costs for such tasks will be decided in advance and with the approval of the Programme Steering Committee

be charged to the PNG UN Country Fund as direct costs.

Section II

Disbursement of Funds to the Participating UN Organizations

and a Separate Ledger Account

1. The Administrative Agent will make disbursements from the PNG UN Country Fund Account in accordance

with instructions from the Programme Steering Committee/UNCT, in line with the approved programmatic

document38

. The disbursement to the Participating UN Organizations will consist of direct and indirect costs as set

out in the programme budget.

2. Each Participating UN Organization will establish a separate ledger account under its financial regulations

and rules for the receipt and administration of the funds disbursed to it from the PNG UN Country Fund Account.

Each Participating UN Organization assumes full programmatic and financial accountability for the funds disbursed

to them by the Administrative Agent. That separate ledger account will be administered by each Participating UN

Organization in accordance with its own regulations, rules, directives and procedures, including those relating to

interest. That separate ledger account will be subject exclusively to the internal and external auditing procedures

laid down in the financial regulations, rules, directives and procedures applicable to the Participating UN

Organization.39

3. Where the balance in the PNG UN Country Fund Account on the date of a scheduled disbursement is

insufficient to make that disbursement, the Administrative Agent will consult with the Programme Steering

Committee/UNCT and make a disbursement, if any, in accordance with the Programme Steering

Committee/UNCT’s instructions.

38 As used in this document, an approved programmatic document refers to an annual work plan or a programme/project document, etc., which is approved by the Programme Steering Committee for fund allocation purposes. 39 Where the Administrative Agent is also a Participating UN Organization, it will need to open its own separate ledger account and transfer funds from the Fund Account to its separate ledger account.

Section III

Implementation of the Programme

1. The implementation of the programmatic activities which the Donor assists in financing under this Arrangement will be the responsibility of the Participating UN Organizations and will be carried out by each Participating UN Organization in accordance with its own applicable regulations, rules, policies and procedures including relating to procurement. The Donor will not be directly responsible or liable for the activities of any person employed by the Participating UN Organizations or the Administrative Agent as a result of this Arrangement,

2. The Participating UN Organizations will carry out the activities for which they are responsible, in line with

the budget contained in the approved programmatic document, as amended from time to time by the Programme

Steering Committee/UNCT in accordance with the regulations, rules, directives and procedures applicable to it.

Accordingly, personnel will be engaged and administered, equipment, supplies and services purchased, and

contracts entered into in accordance with the provisions of such regulations, rules, directives and procedures.

3. Indirect costs of the Participating UN Organizations recovered through programme support costs will be

7%. In accordance with the UN General Assembly resolution 62/208 (2007 Triennial Comprehensive Policy Review

principle of full cost recovery), all other costs incurred by each Participating UN Organization in carrying out the

activities for which it is responsible under the PNG UN Country Fund will be recovered as direct costs.

4. The Participating UN Organizations will commence and continue to conduct operations for the programmatic activities only upon receipt of disbursements as instructed by the Programme Steering Committee/UNCT.

5. The Participating UN Organizations will not make any commitments above the budgeted amounts in

approved programmatic document, as amended from time to time by the Programme Steering Committee/UNCT.

6. If unforeseen expenditures arise, the Programme Steering Committee/UNCT will submit, through the

Administrative Agent, a supplementary budget to the Donor showing the further financing that will be necessary. If

no such further financing is available, the activities to be carried out under the approved programmatic document

may be reduced or, if necessary, terminated by the Participating UN Organizations. In no event will the

Participating UN Organizations assume any liability in excess of the funds transferred from the PNG UN Country

Fund Account.

7. The Donor reserves the right to discontinue future contributions if reporting obligations are not met as set

forth in this Arrangement; or if there are substantial deviations from agreed plans and budgets. If it is agreed

among the Donor, the Administrative Agent and the concerned Participating UN Organization under the

Arrangement that there is evidence of improper use of funds, the Participating UN Organization will use their best

efforts, consistent with their regulations, rules, policies and procedures to recover any funds misused. The

Participating UN Organization will, in consultation with the Programme Steering Committee/UNCT and the

Administrative Agent, credit any funds so recovered to the PNG UN Country Fund Account or agree with the

Programme Steering Committee/UNCT to use these funds for a purpose mutually agreed upon. Before withholding

future contributions or requesting recovery of funds and credit to the PNG UN Country Fund Account, the

Administrative Agent, the concerned Participating UN Organization and the Donor will consult with a view to

promptly resolving the matter.

8. The Participants recognize that it is important to take all necessary precautions to avoid corrupt,

fraudulent, collusive or coersive practices. To this end, as set out in the MoU between the Administrative Agent

and Participating UN Organizations regarding the Operational Aspects of the PNG UN Country Fund, each

Participating UN Organization will maintain standards of conduct that govern the performance of its staff,

including the prohibition of corrupt, fraudulent, collusive or coersive practices in connection with the award and

administration of contracts, grants, or other benefits, as set forth in their Staff Regulations and Rules and the

Financial Regulations and Rules, including regarding procurement.

Section IV

Equipment and Supplies

1. On the termination or expiration of this Arrangement, the matter of ownership of equipment and supplies

will be determined in accordance with the regulations, rules, directives and procedures applicable to such

Participating UN Organization, inclu ding any agreement with the relevant host Government if applicable.

Section V

Reporting

1. The Administrative Agent will provide the Donor and the Programme Steering Committee/UNCT with the

following statements and reports, based on submissions provided to the Administrative Agent by each

Participating UN Organization prepared in accordance with the accounting and reporting procedures applicable to

it, as set forth in the TOR:

(a) Annual consolidated narrative progress reports, based on annual narrative progress reports received from Participating UN Organizations, to be provided no later than five months (31 May) after the end of the calendar year;

(b) Annual consolidated financial reports, based on annual financial statements and reports, to be received from the Participating UN Organizations, as of 31 December with respect to the funds disbursed to them from the PNG UN Country Fund Account, to be provided no later than five months (31 May) after the end of the calendar year;

(c) Final consolidated narrative report, based on final narrative reports received from Participating UN Organizations after the completion of the activities in the approved programmatic document and including the final year of the activities in the approved programmatic document, to be provided no later than seven months (31 July) of the year following the financial closing of the PNG UN Country Fund. The final consolidated narrative report will contain a summary of the results and achievements compared to the goals and objectives of the PNG UN Country Fund.

(d) Final consolidated financial report, based on certified final financial statements and final financial reports received from Participating UN Organizations after the completion of the activities in the approved programmatic document and including the final year of the activities in the approved programmatic document/, to be provided no later than seven months (31 July) of the year following the financial closing of the PNG UN Country Fund.

2. The Administrative Agent will provide the Donor, Programme Steering Committee/UNCT and Participating

UN Organizations with the following reports on its activities as Administrative Agent:

(a) Certified annual financial statement (“Source and Use of Funds” as defined by UNDG guidelines)

to be provided no later than five months (31 May) after the end of the calendar year; and

(b) Certified final financial statement (“Source and Use of Funds”) to be provided no later than seven

months (31 July) of the year following the financial closing of the PNG UN Country Fund.

3. Consolidated reports and related documents will be posted on the websites of the UN in Papua New Guinea

and the Administrative Agent (www.undp.org/mdtf).

Section VI

Monitoring and Evaluation

1. Monitoring and evaluation of the PNG UN Country Fund including, as necessary and appropriate, joint

evaluation by the Participating UN Organizations, the Administrative Agent, the Donor, the host Government and

other partners will be undertaken in accordance with the TOR.

2. The Donor, the Administrative Agent and the Participating UN Organizations will hold annual

consultations as appropriate to review the status of the PNG UN Country Fund.

Section VII

Joint Communication

Information given to the press, to the beneficiaries of the PNG UN Country Fund, all related publicity material,

official notices, reports and publications, will acknowledge the role of the Government of Papua New Guinea, the

donors, the Participating UN Organizations, the Administrative Agent and any other relevant entities.

The Administrative Agent in consultation with the UN Communication Committee (UNCC) and Participating UN

Organizations will ensure that decisions regarding the review and approval of the PNG UN Country Fund as well as

periodic reports on the progress of implementation of the PNG UN Country Fund, associated external evaluations

are posted, where appropriate, for public information on the websites of the UN in Papua New Guinea

[www.oneun.org.pg] and the Administrative Agent [www.undp.org/mdtf]. Such reports and documents may

include Programme Steering Committee/UNCT approved programmes and programmes awaiting approval, fund

level annual financial and progress reports and external evaluations, as appropriate.

http://www.undp.org/mdtf

Section VIII

Expiration, Modification and Termination

1. The Administrative Agent will notify the Donor when it has received notice from all Participating UN

Organizations that the activities for which they are responsible under the approved programmatic document have

been completed. The date of the last notification received from a Participating UN Organization will be deemed to

be the date of expiration of this Arrangement, subject to the continuance in force of paragraph 4 below for the

purposes therein stated.

2. This Arrangement may be modified only by written agreement between the Participants.

3. This Arrangement may be terminated by either Participant on thirty (30) days of a written notice to the

other Participants, subject to the continuance in force of paragraph 4 below for the purpose therein stated.

4. Commitments assumed by the Donor and the Administrative Agent under this Arrangement will survive

the expiration or termination of this Arrangement to the extent necessary to permit the orderly conclusion of

activities, the withdrawal of personnel, funds and property, the settlement of accounts between the Participants

hereto and the Participating UN Organizations and the settlement of contractual liabilities required in respect of

any subcontractors, consultants or suppliers. Any balance remaining in the PNG UN Country Fund Account or in the

individual Participating UN Organizations’ separate ledger accounts upon winding up of the PNG UN Country Fund

will be used for a purpose mutually agreed upon or returned to the donor(s) in proportion to their contribution to

the PNG UN Country Fund as decided upon by the donor(s) and the Programme Steering Committee/UNCT.

Section IX

Notices

1. Any action required or permitted to be taken under this Arrangement may be taken on behalf of the

Donor, by __________ or his or her designated representative, and on behalf of the Administrative Agent, by the

Executive Coordinator, Multi-Donor Trust Fund (MDTF) Office or his or her designated representative.

2. Any notice or request required or permitted to be given or made in this Arrangement will be in writing.

Such notice or request will be deemed to be duly given or made when it will have been delivered by hand, mail, or

any other agreed means of communication to the party to which it is required to be given or made, at such party's

address specified below or at such other address as the party will have specified in writing to the party giving such

notice or making such request.

Section X


1. The Participants will use their best efforts to promptly settle through direct negotiations any dispute, controversy or claim arising out of or in connection with this Memorandum of Understanding or any breach thereof. Any such dispute, controversy or claim which is not settled within sixty (60) days from the date either party has notified the other party of the nature of the dispute, controversy or claim and of the measures which should be taken to rectify it, will be resolved through consultation between the Executive Heads of each of the Participating UN Organizations and of the Administrative Agent.

2. The Participants will use their best efforts to settle amicably any dispute, controversy or claim arising out of, or relating to this Arrangement or the breach, termination or invalidity thereof. Where the Participants wish to seek such an amicable settlement through conciliation, the conciliation will take place in accordance with the UNCITRAL Conciliation Rules then obtaining, or according to such other procedure as may be agreed between the Participants.

For the Donor:

Name: _____________________

Title: ______________________

Address: ___________________

Telephone: _________________

Facsimile: __________________

Electronic mail: ______________

For the Administrative Agent:

Name: Bisrat Aklilu

Title: Executive Coordinator, MDTF Office, UNDP

Address: 828 Second Avenue, New York, NY 10017, USA

Telephone: +1 212 906 6880

Facsimile: +1 212 906 6990

Electronic mail: [email protected]

Section X

Entry into Effect

This Arrangement will come into effect upon signature thereof by the Participants and will continue in effect until

it is expired or terminated.

Section XI


Any dispute arising out of the Donor’s Contribution to the PNG UN Country Fund will be resolved amicably

through dialogue among the Donor, the Administrative Agent and the concerned Participating UN Organization.

Section XII

Privileges and Immunities]

Nothing in this Standard Administrative Arrangement will be deemed a waiver, express or implied, of any of the

privileges and immunities of the United Nations, the Administrative Agent, or each Participating UN Organization.

IN WITNESS WHEREOF, the undersigned, being duly authorized by the respective Participants, have signed the

present Arrangement in English in three copies.

For the Donor:

Signature: ___________________

Name: ______________________

Title: _______________________

Place: _______________________

Date: _______________________

For the Administrative Agent:

Signature: ___________________

Name: Bisrat Aklilu

Title: Executive Coordinator

Place: _______________________

Date: _______________________

The present Arrangement has been signed in the presence of:

Signature: ___________________

Name: ______________________

Title: UN Resident Coordinator in Papua New Guinea

Place: _______________________

Date: _______________________ ]

*******************************

ANNEX A: Papua New Guinea UN Country Fund Terms of Reference

ANNEX B: Schedule of Payments

ANNEX B: SCHEDULE OF PAYMENTS

Schedule of Payments: Total Amount:

Total amount Thematically Earmarked (if relevant):

Total amount Agency Earmarked (if relevant, only allowed for staff cost):

[Time of first payment] [amount in figures] [Thematic area and amount – if thematic earmark 40

]

[UN Agency Name and amount – if agency earmark 41

]

[Time of second payment] [amount in figures] [Thematic area and amount – if thematic earmark]

[UN Agency Name and amount – if agency earmark]

[Time of third payment] [amount in figures] [Thematic area and amount – if thematic earmark]

[UN Agency Name and amount – if agency earmark]

40 Ignore if no earmarks are applied

41 Ignore if no earmarks are applied

budgetary framework 2009 -2012

Documents