INTERNAL UN Attachment I: ONE-FUND FOR KIRIBATI ALLOCATION GUIDELINES
1 July 2009
1. Year-end UN technical consultations: UN agencies will prepare draft Annual Work Plans (AWPs) aligned to the UNDAF Kiribati Implementation Plan 2008-2012 (UNDAF-KIP) for discussion at year-end in-country technical consultations established according to clusters of KDP Objectives with lead UN agencies assigned by the UNCT. Draft AWPs will include clear performance benchmarks and detailed budgets including data on past expenditure (refer to Annex 1 for broad guidance on budget development), and will be discussed at the line ministry level and in consultation with development partners. Records of significant findings, consultations and recommendations will be available for the UNCT. In-country consultations will be coordinated and supported by the Joint Presence Office (UNICEF). 2. UNCT decision-making: Following technical consultations, AWPs will be finalised by agencies and submitted to the UNCT with details on: Support from counterpart Government Ministries. Specific activities including annual outcome and outputs. Associated performance information (M&E). Harmonisation with donor programmes. Updated budgets identifying funding sources during the four-year cycle and data on past expenditure. This will include core/assessed, earmarked non-core/extrabudgetary funds from all sources and un-funded areas that require support from the One-Fund for Kiribati. A separate, concise summary analysis justifying access to the Fund. A number of agencies have shared funding gaps and will be working together (e.g. under joint programmes), while others will have stand-alone funding gaps. The AWPs and associated analysis will be reviewed by the UN M&E Working Group that will provide advice to the UNCT, including on performance-based un-funded allocations from the One-Fund for Kiribati. The UNCT will: Verify that AWPs are in-line with the UNDAF-KIP. Agree on the logic and readiness of un-funded programmes/activities on a caseby-case basis, based on quality and relevance, previous utilization of resources and capacity to expend funding. - Decisions will not be made on entitlement and participating agencies have no guarantee of access to the One-Fund for Kiribati. Until the One-Fund for Kiribati is fully operational with long-term and predictable donor support, not all UNDAF-KIP/AWP gaps will be met and there will be constraints on the amount of funds that can be allocated. - As the UN aims to achieve sustained impact, UNCT decisions for advice to the JSM will be based on performance-based allocations.
INTERNAL UN -
1 July 2009
If the normal UNCT process of collegial consultations and consensus fails the UNRC, as Chair, will make final decisions on internal UN funding recommendations to the One-Fund for Kiribati. In these cases, the UNRC will ensure that the process and reasoning are clearly documented and can be verified by all parties. - As additional UN agencies bring Kiribati into their programming under the UNDAF-KIP they will be required to engage in these mechanisms through respective MOUs. Determine whether recommended funding allocations are within the availability of resources under the One-Fund for Kiribati.
The Administrative Agent (UNDP) will then consolidate separate agency AWPs into a single AWP for the UNDAF-KIP for consideration and decision by the Joint Strategy Meeting. 3. Joint Strategy Meeting: The JSM takes a strategic view of UNDAF-KIP implementation in Kiribati and one of its key agenda items is annual review of funding gaps of the UNDAF-KIP presented through the consolidated AWP. In this role the JSM will review progress against results and assign resources to un-funded areas based on consideration of: alignment with the KDP and prioritization by the Government to help ensure that national priorities continue to drive the operations of the One-Fund for Kiribati demonstrated comparative advantage in key policy areas of the KDP capacity of line Ministries to deliver development results and absorb enhanced levels of engagement by the UN capacity and recognised ability of UN agencies to deliver outcomes including incountry presence for sustained engagement or regular (preferably three) incountry programming missions in the previous year harmonisation with the programmes of other development partners performance information, lessons learned and risk management harmonisation of programmes with other development partners, such as sectorspecific SWAPs. Decisions will be made by consensus at the JSM meeting, allowing for dialogue between Government, the UN and development partners on the optimal allocation of resources. Final decisions will be taken by the JSM co-chairs: the Permanent Secretary of the Kiribati Ministry of Finance and Planning and the UNRC. These decisions will be fully documented by the JSM Secretariat (the RC Coordination Office and the Ministry of Finance and Economic Development). It is expected that anticipated expenditure will shift during a 12-month period depending on various Government Ministries’ and UN agencies’ capacity to utilize the One-Fund for Kiribati. If necessary, the JSM will be convened out of session if there is a perceived need, in consultation between the co-chairs, to discuss specific issues, such as approaches to resolve constraints and bottlenecks in programme delivery.
1 July 2009
4. Distribution of allocations by UNCT: Following the JSM, the UNCT will agree on the most effective and efficient means to ensure that JSM decisions in relation to the One-Fund for Kiribati are implemented. The Administrative Agent (UNDP) will disburse funds to participating UN agencies in a timely and efficient manner. 5. First year of the One-Fund for Kiribati: JSM decisions will not be based on the AWP process in 2009 as the UNDAF-KIP is being operationalized and the One-Fund for Kiribati is yet to be established. In the absence of an AWP for 2009, the JSM will take funding decisions based on the following allocation and capacity criteria: 2009 funding allocation to UN Agencies The RC will recommend that the JSM allocate funding to participating UN agencies based on the following agreed criteria: Applying the ‘readiness-to-move-ahead’ criteria that include: (i) Government commitment to drive the results; and (ii) agency capacity to implement. A proportionate division of available funds applied across all programmes. This implies that that there will be a relative shortfall in the financing but will motivate participating agencies’ support for joint resources mobilization. Review against timeliness, cost-effectiveness and the enhancement the results can have of the policy environment in Kiribati. 2009 capacity requirements of UN agencies to qualify for participation in the One-Fund mechanism The RC will recommend to the JSM the following qualification criteria to admit UN agencies for participation in the One-Fund for Kiribati: The agency’s priorities should be aligned with the Kiribati Development Plan. Comparative advantage of the agency in the Key Policy Area (KPA) of the Kiribati Development Plan. Recognized ability to deliver (by the Government and other UN agencies). In-country presence for sustained engagement with the Government to ensure delivery of development results. If the agency is not present in-country, it should have had at least three strategic missions to work with Government partners in the previous one year.
1 July 2009
ONE-FUND FOR KIRIBATI GUIDANCE ON PERFORMANCE-BASED AWP BUDGET DEVELOPMENT
In developing their AWP budgets for UNCT consideration and consolidation for JSM approval, agencies will consider the following guidance: If an agency’s previous year’s progress report and financial statement demonstrates 50% liquidation of funds and/or achievement of less than 50% of operational benchmarks, that agency will be expected to lower their AWP expectations and budget requirements to within a 20% range of the actual achievements of the preceding year. If an agency’s previous year’s progress report and financial statement demonstrates between 50-75% liquidation of funds and achievement of 5075% of operational benchmarks, that agency will be expected to maintain budgets at existing levels (inclusive of the previous year’s unspent balance). If an agency’s previous year’s progress report and financial statement demonstrates at least 75% liquidation of funds and achievement of 75% of operational benchmarks or more, that agency will be able to augment up to 100% in the following year’s AWP - provided it can demonstrate growing national absorptive and managerial capacity and that of its own agency.