to...indicates the subsection. for example, 5.3.1 represents chapter 5, section 3, subsection 1....

TO: All UNDP Staff DATE: 30 April 1999

FROM: Zéphirin Diabré

SUBJECT: Programming Manual

I am very pleased to announce that the new UNDP Programming Manual is now availablein electronic form. It may be read or retrieved from the OSG intranet site (http://intra.undp.org/osg).It will be available to all country offices, when they receive the CD-ROM of the UNDP intranet nextmonth. A limited number of hard copies will be distributed to country offices and other usersshortly, followed by translations into our working languages.

Streamlining

The Programming Manual is not a simple update of the old PPM. It is the result of a majortwo-year project in which the programming policies and procedures have been carefully reviewed,many elements eliminated, and new ones added. The text has been completely re-written in auser-friendly style and format. Moreover, the total length is just one-third of the old PPM.

Flexibility with accountability

Consistent with UNDP 2001 principles, the manual makes it clear where the responsibilitylies for taking action, whether the action is in a country office or at headquarters. In this waycountry offices and other operational units will be able to exercise delegated authority and ensurethat they are acting correctly on matters for which they are accountable. Moreover, by limiting themanual to essential policies and procedures, the manual allows country offices greater flexibility inapplying procedures in ways that are responsive to local conditions.

The changing environment

Even as this manual is issued, developments are occurring in the way we do our business.For example, the UNDAF and the CCA are becoming integral parts of our programming process,as is the Strategic Results Framework. These developments have been captured as far aspossible.

Electronic format

The use of the electronic format offers several benefits: we can reduce the expenditure onpreparing and shipping over 2,000 binders to holders of the Programming Manual around theworld. Equally important is that we can update the manual regularly at minimal cost. Thisresponds to the concern that many of you have expressed about manuals not having been keptup-to-date. We are committed to keeping the manual up-to-date and indeed improving it whereverpossible through regular revisions.

Transitional arrangements

The effective date for applying the procedures in the manual is 1 May 1999. However,there will be a transition period in which some of the old procedures will remain in effect. Details ofthe transition are set out in the attached note.

If you have any questions or suggestions regarding the new Programming Manual, pleasecontact the Operations Support Group. This can be done through e-mail at the following address:[email protected].

PROGRAMMING MANUAL – TRANSITIONAL ARRANGEMENTS

CHAP-TER

TOPIC NEW PROCEDURE TRANSITIONAL ARRANGEMENT

1. - No transitional issue -

2. Preparing aCCF

Key steps are preparation of CCA,UNDAF and CCF in that sequence.Advisory note not normally required.

Ongoing CCFs are not affected. If a newCCF is due, proceed as follows:(i) Where there is neither a CCA nor

an UNDAF, an Advisory Note mustbe prepared and processed inaccordance with the procedures inChapter II of the June 1996Programming Manual.

(ii) Where there is a CCA but noUNDAF, the Advisory Note is notrequired. It is replaced by the CCAtogether with a letter from UNDP tothe Government indicating the rolethat UNDP envisages playingwithin the future UNDAF. Thisletter must be prepared inconsultation with headquarters andcopied to the United Nationscountry team.

The above procedures remain in effectuntil further notice.

2. Annex 2A:Considerations for QualityProgramming

Annex 2A to be used in the appraisal ofall programme documents, includingCCFs. It is used by LPACs, BPACs andPMOC.

Annex 2A is used in reviewing draft CCFsreceived at headquarters from 1 May 1999onwards. It should accordingly be usedby the LPAC with immediate effect.

3.

3.

Allocation ofTRAC-2Resources

Cost-sharing

New CCFs will contain more informationon expected results: also country andannual reviews (see chapter 7) will betaking place. This information will enablethe regional bureau and PMOC to assessprogramme quality and make TRAC-2recommendation. Programme outlines nolonger needed with new CCFs.

In CCF cost-sharing (formerly programmecost-sharing) there are new proceduresfor managing resources (the cost-sharingaccount)

Programme outlines must be prepared ifthe CCF follows the 1996 format or nocountry review has taken place. Forprogramme outline procedures, see theAssociate Administrator’s memo dated 17March 1997.The amended TRAC-2 assignmentprocedures apply to all new CCFs andextensions of current CCFs, effective May1999.Already in effect.


CHAP-TER


4. Allocation ofTRAC-3Resources

The maximum sum that the UNDPresident representative can approveunder Category II (sudden crisis) is$100,000. (Reduced from $200,000).

Already in effect.

4. and5.

Programmeand projectformulation:ÔParticipation

ÔResults

ÔEnvironment

Formulation must be an inclusive,participatory process

Clear results, and related indicators ofprogress and success, must bedetermined.

The Environment ManagementGuidelines are to be used.

All new programmes and projects to beprepared in line with these processeseffective end June at the latest.Ongoing programmes and projects shouldbe revised where necessary to ensure thatresults are clearly stated, by end-1999 atthe latest.Already in effect.

4. and6.

Micro-capitalgrants

Sections 4.3.5 and 6.4.6 will containcriteria and procedures for includingmicro-capital grants in programmes andprojects. (This mainstreams the micro-start procedures).

The procedures will be issued shortly.Meanwhile Micro-Start procedures apply.

4. and 5 Equipment Full authority delegated to the residentrepresentative. Procedures are included(section 5.5.3) to protect theAdministrator’s accountability whereequipment components are large.

Large equipment components to bereviewed in country offices from May1999. Pending requests for headquarters’clearance of large equipment componentswill be processed by headquarters.

5. Programmesupportdocuments(PSDs) andprojectdocuments

Formats for PSDs and project documentsare streamlined. PSD format is supportedby PSD software version 2.0.

See programme and project formulation(chapter 4 above). New formats to be usedfrom July 1999 onwards. Ongoing PSDsand project documents may remain in oldformat.

5. Appraisal andapproval ofprogrammesand projects

The LPAC and the use of the“Considerations for Quality Programming”are mandatory.Section 5.5.2 states the arrangements fordelegating authority to residentrepresentatives, and the limits on thisauthority.Chapter 5 includes the UNDP policy ondisclosure of information.

Effective May 1999.


CHAP-TER


5. Budget lines Line 15 is now used for monitoring andevaluation only.

There are several other minor changes inbudget lines. For example, allinternational personnel are now termed“consultants”. The term “expert” isdiscontinued. OPAS experts areeliminated.

Adequate provisions under line 15 to bemade in all new PSDs and projectdocuments; also in revisions to ongoingPSDs and project documents, by 31December 1999, if existing M&Earrangements are inadequate.

The budget-line categories are to beapplied in all new documents, effectiveMay 1999. Old documents do not need tobe altered, unless this is needed to ensurecompliance with PFMS and FIM.

6. Execution The distinction between execution andimplementation is dropped. An institutionwill be designated to carry out theprogramme or project, or it may contractothers to carry out specified activities.

For ongoing PSDs and project documents,no change is necessary. New documentsshould reflect the simplified arrangements,effective May 1999.The new procedures for NGO Executionand National Execution replace thoseissued on September 1997 and March1998, effective May 1999.

6. Directpayments

The separate Request for Direct PaymentForm is discontinued.

The form may continue to be used untilfurther notice, if the parties prefer to doso.

6. EquipmentInventory

The lower limit for non-expendableequipment is $1,000 instead of $400.

Applies to all newly purchased items ofequipment, effective May 1999. No needto alter existing inventories.

6. Country officesupport,capacity-building andexit strategy

Where the UNDP country office providessupport services under NEX or othermanagement arrangements, capacity-building measures and an exit strategymust be worked out with the government.

Already in effect with the 1998 NEXprocedures.

Micro-credit See chapter 4 above. See chapter 4 above.


CHAP-TER


7. Annualprogramme/projectprogress report(APR)

Country andannual reviewsand reports

Revised. Now includes a table forrecording progress towards results,supporting the Strategic ResultsFramework (SRF).

A more comprehensive and in-depthcountry review process has beeninstituted to replace the mid-term reviewof the country programme, to ensuregreater accountability and betterassessment of country officeperformance. The annual review andreport supports delegation of authorityand feeds into the corporate level results-oriented annual report (ROAR).

Effective May 1999.

Effective May 1999.

8. Global andRegionalProgramming

No transitional issue.

9. Support for theResidentCoordinator(SRC)

No transitional issue.

UNDP Programming Manual April 1999

Preface Page 1

Preface

This Programming Manual sets out UNDP's current programme policies and procedures. Itreplaces the Programme and Projects Manual (PPM) issued first in 1988 and the first edition ofthe Programming Manual issued in 1996.

1. Scope

The policies and procedures set out here apply to all UNDP-supported programmes and projectsand to the operations of trust funds and UNDP Administered Funds.

2. Purpose and Use

The user for which this manual has been designed is the person with immediate operationalresponsibilities.

The manual reflects an attempt to distinguish policies, procedures and guidelines, and tostreamline as many procedures as possible, consistent with UNDP 2001. By limiting the manualto essential policies and procedures, the manual allows country offices greater flexibility inapplying procedures in ways that are responsive to local conditions. At the same time, it aims tobe clearer about the limits of flexibility to facilitate compliance and accountability.

The manual also presents: (1) UNDP’s current mandate for sustainable human development, (2)participatory development methods, (3) the achievement of results and impact, (4) learning fromexperience and (5) the trend towards increased coordination and procedural harmonizationamong United Nations agencies.

3. Structure

There are nine chapters to the manual. Each chapter is divided into sections and subsections.References to text are made using a numerical code: the first number indicates the chapternumber, the second number indicates the section within the chapter and the third numberindicates the subsection. For example, 5.3.1 represents chapter 5, section 3, subsection 1.Annexes are attached to the chapter to which they correspond. For example, Annex 2Arepresents chapter 2, Annex A.

This manual is more succinct than its predecessors. It deals only with policies and procedures.While guidelines and background information have been eliminated, the manual indicates tousers where such information can be found.


Preface Page 2


INDEX Page 1

INDEX

A

Accountability of the Administrator (1.1 para.3)

Administrative Committee on Coordination (ACC)• integrated UN approach (1.4.2 para.2)• ACC codes (5.3.2 para.8)• conference follow-up (1.2.3), (9.3.2 para1)

Administrative and operational services (AOS)• policies and procedures (3.7)• budgeting (5.2.3)• cost recovery (6.3.2)

Administrator's note• see note by the Administrator

Advances of funds (6.5.3)

Advance authorization (AA)• for PSD or project document (5.5.5)• format for AA of a PSD, project document or revision document (5.5.6)• of TRAC resources (3.3.6)

Advance of funds to designated institution (6.5.3)

Administrative support staff (6.4.2 para.8)

Agency• execution (6.2.3)• participation in support facilities (annex 3A)• AOS support facility (3.7)• SPPD support facility (3.5)• STS support facility (3.6)

Agency support costs• see support cost facilities

Agreements (formats)• third-party cost sharing (annex 3B)• Government and UN agency (annex 6B)• Government and UNDP for provision of support services (annex 6C)• UNDP and the private sector (annex 3C)• project cooperation agreement between UNDP and NGO (annex 6E)


INDEX Page 2

Allocation of resources• UNDP financial framework (3.1, table 3.1)

Amendment to a CCF (2.4.9 para.2)

Annual review• as stated in the PSD (5.1.1 section II.D)• procedures (7.5.1)• structure and content of the country office annual report (annex 7G)

Appraisal• considerations for quality programming (annex 2F)• of CCFs (2.4.7)• of GCFs (8.2.3)• of global projects (8.3.3)• of programmes and projects (5.4)• of RCFs (8.4.3)• of regional programmes and projects (8.5.3)• of TCDC projects (3.9.5)• review committees (2.5)

Approval• advance authorization of a PSD or project document (5.5.5)• CCFs (2.4.7)• cost-sharing arrangements (3.10.4)• GCFs (8.2.3)• global projects (8.3.3)• large equipment components (5.5.3)• preparatory assistance (4.4.2)• PLSPs (5.6.1, para.4)• programmes and projects (5.5)• programme and project revisions (6.6.4)• RCFs (8.4.3)• regional programmes and projects (8.5.3)

Assessment• capacity for programme and project management: key considerations (annex 6A)• considerations for quality programming (annex 2F)

Assignment of resources• SPPD (3.5.2)• STS (3.6.2)• SRC (9.2.1)• TRAC 1 and 2 (3.3)• TRAC 2 assignment form (annex 3D)• TRAC 3 (3.4.4)


INDEX Page 3

Associate expert (6.4.2 para.8)

Audit• objectives and scope (6.8.1)• process (6.8.3)• under the different management arrangements (6.8.2)

B

Benchmarks• see indicators

Budget• budget lines (5.2.2)• budget line codes (5.2.5)• for cost-sharing (3.10.6)• government cash counterpart contribution (5.2.8)• preparing a PSD or project document budget (5.2)• PSD and project document budget format (5.2.1)• PSLP (5.6.1 para.4)• revisions (6.6.3)• sample PSD/project budget (5.2.6)• SPPD sample budget (3.5.7)• STS sample budget (3.6.8)

Bureau Programme Advisory Committee (BPAC) (2.5.3)

C

Cancellation or suspension of a programme or project (6.7.3)

Capacity-building• capacity-building measures and exit strategies (6.3.4)• capacity for programme and project management: key considerations (annex 6A)• identifying capacity needs during formulation (4.2.11 para.3)• policy for programming (4.1 para.11)

CCF cost-sharing§ definition (3.10.3)§ procedures (3.10.12)

Civil society• policy on participation (4.1 para.9)


INDEX Page 4

Co-financing arrangements• cost-sharing (3.10)• government cash counterpart contributions (3.12)• parallel financing (3.15)• private sector contributions (3.11)• trust funds (3.13)

Combined delivery report (6.5.4 para.3)

Common country assessment (CCA)• policies and procedures for use (2.2)• preparation process (2.2.6)• resources for preparing (2.2.7)• use in UNDAF (2.1.2)

Competitive bidding• agency execution (6.2.3)• national execution (6.2.2)• NGO execution (6.2.4)• procuring inputs (6.4.1)

Consultants (6.4.2 para.8(a))

Contracts• budget component (5.2.7)• policy (4.3.2)• management of (6.4.3)

Cost-sharing• and AOS (5.2.3 para.6)• policies and procedures (3.10)• sample budget (5.2.6)• standard cost-sharing agreement (annex 3B)• standard cost-sharing agreement with the private sector (annex 3C)

Country cooperation• elements of country cooperation (2.1.2)• responsibilities (2.1.3)

Country cooperation framework (CCF)• extension of (2.4.9 para.1)• format for CCF extension (annex 2G)• policies and procedures (2.4)• relation to CCA and UNDAF (2.1.2)• role in TRAC-2 resource assignment (3.3)• resource mobilization target table (annex 2E)


INDEX Page 5

Country reviews• procedures (7.5.2)• role in TRAC-2 resource assignment (3.3.3)• structure and content of the country review report (annex 7I)

Country strategy note (CSN)• brief description (annex 2A)• role in CCF (2.4.5)

Crisis Committee (3.4.2), (3.4.4)

D

Design• see programme and project formulation

Designated institution (6.2.1)

Development objective • CCF objective (2.4.8 para.4)• determining during programme and project formulation (4.2.7)• GCF objective (8.2.4 para.4)• RCF objective (8.4.4 para.4)

Development Support Services (DSS)• policies and procedures (3.8)

Direct execution (6.2.5)

Direct execution for TRAC-3 activities (3.4.1 para.6)

Direct payment (6.5.2 para.3)

Disposal of equipment (6.4.5 para.3)

E

Emergency assistance• see special development situations

End-of-year report• annual programme/project report (APR) (7.3.3)• APR form (annex 7C)• annual review (7.5.1)• content and structure of the country office annual report (annex 7G)• DSS (3.8.6)• SPPD (3.5.8)


INDEX Page 6

• STS (3.6.10)

Environment• and infrastructure projects (4.3.4 para.2)• in UNDP programming framework (1.4.8)• in quality programming (annex 2F)• management guidelines (4.1 para.10)

Equipment• approving programmes and projects with large equipment components (5.5.3)• budget component (5.2.7)• expendable and non-expendable (6.4.5 para.1)• disposal or transfer of (6.4.5 para.3)• management of equipment (6.4.5 para.2)• policies on managing (6.4.5 para.1)• policies on selecting (4.3.4)

Evaluation• country-level evaluation plan (7.4.3)• country-level evaluation plan format (annex 7F)• general policies on monitoring and evaluation (7.1.1), (annex 7A)• global projects (8.3.5)• planning and managing an evaluation (7.4.5)• policies on evaluation coverage (7.4.1)• regional programmes and projects (8.5.5)• the evaluation report and the project evaluation information sheet (7.4.6)• types of evaluations (7.4.4)

Executing agency• see management arrangements

Executing agent code (5.3.2 para.1(f))

Expanded Programme of Technical Assistance (EPTA) (1.2.1)

Extensions• of CCF (2.4.9 para.1)• format for CCF extension -note by the Administrator (annex 2G)• of programmes and projects (6.6)

Exit strategy• policy (4.1 para.12)• programme and project formulation (4.2.11 para.6)• UNDP country office support services ( 6.3.1)• capacity building measures and exit strategy (6.3.4)


INDEX Page 7

F

Fellowships• budget component (5.2.7)• organizing a fellowship (6.4.4 para.3)• policy on training (4.3.3)

Field visits (7.3.2), (annex 7B)

Financial completion (6.7.2)

Financial management• advances of funds, providing funds to designated institutions (6.5.3)• arranging for the management of funds (6.5.2)• audit (6.8)• financial accountability (6.5.1)• how to produce a financial report (annex 6D)• recording financial transactions/ the Operating Fund Account (6.5.5)• required financial reports (6.5.4)

Financial reports• combined delivery report (6.5.4 para.3)• financial report (6.5.4 para.1)• project delivery report (6.5.4 para.2)• cost sharing (3.10.11)• private sector cost-sharing (3.11.7)• trust funds (3.13.9)

Focus areas• programming framework (1.4)• the focus areas (1.4.4)

Formulation• see programme and project formulation

Frameworks• CCF (2.4)• GCF (8.2)• programming (1.4)• RCF (8.4)• results (1.3)• UNDAF (2.3)• UNDP financial framework (3.1, table 3.1)• UNDP legislative framework (1.2)


INDEX Page 8

Funds• resources managed by UNDP (3.0)• trust funds (3.13)• UNDP-administered funds (3.14)

G

Gender• in quality programming (annex 2F)• in UNDP programming framework (1.4.7)• policy on participation (4.1 para.9)

Global cooperation framework (GCF)• polices and procedures (8.2)• appraisal and approval (8.2.3)• contents (8.2.4)

Global environment facility (GEF)• in the CCF RMT table (annex 2E)• types of trust fund (3.13.1)• UNDP programming framework (1.4.8 para.5)

Global projects• appraisal and approval (8.3.3)• policies and procedures (8.3)

Global and regional programming• policies (8.1.3)• aims (8.1.4)

Governance• in quality programming (annex 2F)• in UNDP programming framework (1.4.5)

Government cost-sharing contributions• AOS and cost-sharing (5.2.3 para.6)• budget component (5.2.7)• types of cost-sharing arrangements (3.10.3 para.1)

Government cash counterpart contribution• definition (3.12.1)• procedures (3.12.2)• budgeting (5.2.8)

Government coordinating authority• responsibility for managing programmes and projects (6.2.1 para.3)


INDEX Page 9

H

Human rights• advocacy (8.1.4)• in programming framework (1.4.5)• policy on participation (4.1 para.9)

I

Immediate objective• determining during formulation (4.2.7)• reporting on in the annual programme/project report (APR) (7.3.3), (annex 7C)

Implementation arrangements• see management arrangements

Indicators• annual programme/project report (APR) (annex 7C)• country office annual report (annex 7G)• setting indicators during formulation (4.2.12)

Inputs• budget components (5.2.7)• INRES (3.9.3 para.2)• managing inputs (6.4)• policies on inputs (4.3)• specifying during formulation (4.2.10)

Input output budgeting• purpose (4.2.10 para.4)• sample budget by objective and output (annex 5D)

Internal and external auditing (6.8)

International competitive bidding (6.4.1, para.3)

International consultants (6.4.2 para.8(a))

Inter-office voucher• use in advance of funds (6.5.3)

L

Legislative framework for UNDP (1.2)

Letters of agreement• between Government and UNDP under national execution (annex 6B)• between Government and UNDP for provision of support services (annex 6C)


INDEX Page 10

Local Programme Advisory Committee (2.5.2)

Logical framework matrix (4.2.8)

Logistical support• programme logistical support (5.6.1)

M

Management arrangements• agency execution (6.2.3)• as specified in a CCF (2.4.8 para.5)• as specified in a GCF (8.2.4 para.5)• as specified in a project document (5.1.2 section F)• as specified in a PSD (5.1.1 section II.D)• as specified in a RCF (8.4.4 para.5)• determining during formulation (4.2.11)• policies on management (6.1)• NGO execution (6.2.4)• national execution (6.2.2)• selection of management arrangements (6.2.1)• UNDP direct execution (6.2.5)

Management of inputs• contracts (6.4.3)• definitions and key principles (6.4.1)• equipment (6.4.5)• micro-capital grants (6.4.6)• personnel (6.4.2)• policies on inputs (4.3)• procurement in special development situations (6.4.7)• training (6.4.4)

Management, financial• see financial management

Management Services Agreements (5.6.2)

Management support• country office support services (6.3.1)• capacity for programme and project management key considerations (annex 6A)• capacity-building measures and exit strategies (6.3.4)• identification in PSD and project document (5.1.1 section II.D), (5.1.2 section F)• letter of agreement between UNDP and the Government (annex 6C)• management support units (6.3.3)

Mandatory revision (6.6.3 para.2)


INDEX Page 11

Micro capital grants• budget component (5.2.7)• policy and uses (4.3.5)• management arrangements (6.4.6)

Mid-term review• see country review

Mission costs (5.2.7)

Monitoring• annual programme/project report (7.3.3)• annual programme/project report form (APR) (annex 7C)• field visits (7.3.2)• field visit report form (annex 7B)• general policies on monitoring and evaluation (7.1.1), (annex 7A)• indicators for monitoring and evaluation in PSD and project document (4.2.12), (5.1.1 section II.C), (5.1.2 section C)• policy on monitoring coverage (7.3.1)• terminal report (7.3.5)• terminal report form (annex 7D)• tripartite review (7.3.4)• tripartite review form (annex 7E)

Monitoring, reporting and evaluation (7.0)• arrangements in the CCF (2.4.8 para.5(b))• arrangements in the GCF (8.2.4 para.5(b))• arrangement in the PSD (5.1.1 section II.E)• arrangements in the project document (5.1.2 section G)• arrangements in the RCF (8.4.4 para.5(b))• coverage (7.1.2)• definitions (7.2.1)• evaluation (7.4)• general policies (7.1.1)• monitoring (7.3)• review and reporting on country-level cooperation (7.5)• SRC funds (9.4.7)

Montreal Protocol• in CCF RMT table (annex 2E)• in programming framework (1.4.8 para.4)• types of trust funds (3.13.1)

Multi-year funding framework (1.3.2 para.4(a))

Multi-year funding framework report (1.3.2 para.4(b))


INDEX Page 12

N

National consultants• budget component (5.2.7)• management of (6.4.2 para.8(a))

National programme• description in PSD (5.1.1 section I)• elements of (4.1 para.5)• policy (4.1 para.3)

Nationally Recruited Project Professional Personnel (NPPP)• see national consultant

National Technical Cooperation Assessment and Programme (NATCAP) (annex 2A)

Net contributor countries• policy on CCF preparation (2.4.2 para.1)• TRAC procedures (3.3.7 para.2)

NGO execution (6.2.4)

NGO Execution Fee (5.2.3 para.9), (5.2.7)

Non-expendable equipment (6.4.5)

Note by the Administrator• format for CCF extension (Annex 2G)• procedures for extension of CCF (2.4.9)

O

Objectives• CCF format (2.4.8 para.4)• GCF format (8.2.4 para.4)• RCF format (8.4.4 para.4)• setting objectives during programme and project formulation (4.2.7)• project document (5.1.2 section C)• PSD (5.1.1 section II.C)

Operational completion of a programme or project (6.7.1)

Operating fund account (6.5.5)


INDEX Page 13

Other resources• cost sharing (3.10)• Government cash counterpart contribution (3.12)• private sector contributions (3.11)• trust funds (3.13)

Outcomes• defining during formulation (4.2.7 para.5)• in country office annual report (annex 7G)• in PSD (5.1.1 section III.A)

Outputs• budgeting for (4.2.10 para.4)• defining during formulation (4.2.7)• of SPPD (3.5.8)• sample budget by objectives and outputs (annex 5D)

P

Parallel financing (3.15)

Participation• policy (4.1 para.9)• stakeholder analysis (4.2.3 para.5)

Personnel • budget component (5.2.7)• policies (4.3.1)• recruitment and management of (6.4.2)• types of programme and project personnel (6.4.2)

Poverty• in quality programming (annex 2F)• in the UNDP programming framework (1.4.6)• the UNDP mission (1.4.1)

Preparatory assistance (4.4.2)

Prior obligations• as stated in the PSD (section II.F)• as stated in the project document (section E)• specifying during formulation (4.2.14)

Principal project representative (PPR), responsibilities (8.5.4 para.2)


INDEX Page 14

Private sector• contributions from (3.11)• micro-capital grants (4.3.5), (6.4.6)

Private sector contributions• policies and procedures (3.11)• sample cost-sharing agreement with private sector (annex 3C)

Procurement• key principles (6.4.1)• contracts (6.4.3)• equipment (6.4.5)• micro capital grants (6.4.6)• personnel (6.4.2)• policies on inputs (4.3)• training (6.4.4)

Programme Advisory Committees (PACs)• BPAC (2.5.3)• CCF appraisal (2.4.7)• GCF appraisal (8.2.3)• LPAC (2.5.2)• programme and project appraisal (5.4.2)• purpose (2.5.1)• RCF appraisal (8.4.3)

Programme approach• General Assembly resolution (1.2.2 para. 4)• policy on (4.1 para.2)• programme support document format (5.1.1)

Programme and project completion• financial completion (6.7.2)• operational completion (6.7.1)• suspension and cancellation (6.7.3)

Programme and project formulation• design (4.2)• global projects (8.3.2)• policies (4.1)• preparatory assistance (4.4)• regional programmes and projects (8.5.2)• support facilities (4.4.1)• types of inputs (4.3)

Programme and project revision (6.6)


INDEX Page 15

Programme logistical support projects (PLSP) (5.6.1)

Programme Management Oversight Committee (2.5.4)• PMOC subcommittee (2.5.4 para.4)

Programme support document (PSD)• appraisal (5.4)• approval (5.5)• budget (5.2)• format (5.1.1)• preparing the cover page (5.3)• revision procedures (6.6)• revision cover page (annex 6F)• sample cover page (5.3.3)

Project document• appraisal (5.4)• approval (5.5)• budget (5.2)• format (5.1.2)• preparing the cover page (5.3)• revision procedures (6.6)• revision cover page (annex 6F)• sample cover page (5.3.3)

Project delivery report (6.5.4 para.2)

R

Recruitment• programme and project personnel (6.4.2)• under DSS (3.8.5)• under SRC (9.4.3)

Regional cooperation framework• preparation process (8.4.2)• appraisal and approval (8.4.3)• contents of the RCF (8.4.4)

Regional programmes and projects• appraisal and approval (8.5.3)• policies and procedures (8.5)

Regular resources• UNDP financial framework (3.1, table 3.1)


INDEX Page 16

Reports• annual programme/project report form (APR) (annex 7C)• country office annual review report (annex 7G)• country review report (annex 7I)• field visit report form (annex 7B)• on DSS (3.8.6)• on cost sharing (3.10.11)• financial (6.5.4)• on SPPD (3.5.8)• on STS (3.6.10)• on trust funds (3.13.9)• terminal report form (annex 7D)• tripartite review report form (annex 7E)

Request for advances of funds (6.5.2)

Resident coordinator• legislation on (1.2.2 para.3), (9.1.3)• managing SRC funds (9.4)• role in CCA preparation (2.1.3 para.1)

Resident representative• approval authority for PSDs and project documents (5.5.2)

Resource mobilization• policies and procedures (3.2)• sample RMT table (annex 2E)

Resources• administrative and operational services (AOS) (3.7)• cost-sharing (3.10)• development support services (DSS) (3.8)• government cash counterpart contribution (3.12)• parallel financing (3.15)• preparatory assistance and other resources to support design (4.4)• private sector contributions (3.11)• support for technical services (STS) (3.6)• support services for policy and programme development (SPPD) (3.5)• support to the resident coordinator (9.0)• technical cooperation among developing countries (3.9)• TRAC 1 and 2 (3.3)• TRAC 3 (3.4)• trust funds (3.13)• UNDP-administered funds (3.14)


INDEX Page 17

Results framework• country office annual report (1.3.2 para.3), (annex 7G)• elements of the framework (1.3.2)• rationale for the framework (1.3.1)

Review and reporting• annual reviews (7.5.1)• country reviews (7.5.2)• on cooperation frameworks (7.5.2)• on programmes and projects (7.5.1)• structure and content of the country office annual report (annex 7G)• structure and content of the country review report (annex 7I)

Review committees• BPAC (2.5.3)• LPAC (2.5.2)• PMOC (2.5.4)• private sector review group (PSRG) (3.11.5 para.4)• purpose (2.5.1)• considerations for quality programming (Annex 2F)

Revisions to PSDs and project documents• budget revisions (6.6.3)• in special development situations (6.6.5)• mandatory revisions (6.6.3 para.2)• sample revision cover page (annex 6F)• substantive revisions (6.6.2)

Risks• as stated in the PSD (5.1.1 section II.F)• as stated in the project document (5.1.2 section E)• assessing external factors and risks (4.2.13)

S

Service contract (6.4.2 para.5)

Special development situations• assignment of TRAC 3 (3.4)• Crisis Committee (3.4.2), (3.4.4)• Emergency Response Division (1.4.9), (3.4)• procurement in (6.4.7)• programming in (1.4.9)• revisions to ongoing programmes and projects (6.6.5)• types of activities funded by TRAC 3 (3.4.3)• United Nations Disaster Management Team (UNDMT) (3.4.2)• UNDP direct execution (6.2.5)


INDEX Page 18

Special services agreement (SSA) (6.4.2 para.5)

Stakeholders• policy on participation (4.1 para.9)• stakeholder analysis (4.2.3 para.5)

Standard Basic Assistance Agreement (SBAA)• definition (6.2.1 para.4)• legal context of a PSD (5.1.1 section II.G)• legal context of a project document (5.1.2 section H)

Strategic results framework (1.3.2 para.2)

Study tours, seminars and workshops (6.4.4)

Subcontract (6.4.3)

Support cost facilities• AOS (3.7)• agency participation in (annex 3A)• SPPS (3.5)• STS (3.6)

Support to the resident coordinator (SRC)• purpose and assignment of SRC funds (9.2)• types of activities funded by SRC funds (9.3)• managing the use of the SRC funds (9.4)

Support services for policy and programme development (SPPD)• for regional programmes and projects (8.5.2)• policies and procedures (3.5)• sample cover page (3.5.6)• sample end of year report (3.5.8)• sample SPPD budget (3.5.7)• use in programme and project formulation (4.4.1)

Support for technical services (STS)• in management (6.1 para.7)• policies and procedures (3.6)• sample cover page (3.6.7)• sample end of year report (3.6.10)• sample STS budget (3.6.8)• use in monitoring and evaluation (4.2.12 para.5)• use in programme and project formulation (4.4.1)


INDEX Page 19

Suspending or canceling a programme or project (6.7.3)

Sustainable livelihoods• in programming framework (1.4.6)• in quality programming (annex 2F)

T

Technical cooperation among developing countries• mandate (1.2.2 para.2)• policies and procedures (3.9)• use in programme and project formulation (4.2.6)

Terminal report• form (annex 7D)• procedures (7.3.5)

Terminal tripartite review (7.3.4)

Termination• of CCF (suspension) (2.4.9 para.3)• of a programme or project (6.7.3)

Third-party cost-sharing (3.10.3 para.1)

TRAC 1 and 2 resources• policies and procedures (3.3)• TRAC 2 assignment form (annex 3D)

TRAC 3 special development situations• policies and procedures (3.4)

Training and fellowships• budget component (5.2.7)• how to organize (6.4.4)• policies on (4.3.3)

Transfer of knowledge through expatriate nationals (TOKTEN) (6.4.2 para.7)

Transfer of equipment (6.4.5 para.3)

Tripartite review • report form (annex 7D)• review process (7.3.4)

Trust fund• policies and procedures (3.13)• UNDP-administered funds (3.14)


INDEX Page 20

U

Umbrella projects (4.1 para.6(d))

United Nations Country Team• role in projects funded by TRAC 3 (3.4.4)

United Nations Development Assistance Framework• policies and procedures for use (2.3)• preparation process (2.3.6)• use for CCF preparation (2.3.8)

UNDP-administered funds (3.14)

United Nations Capital Development Fund• CFF RMT table (annex 2E)• equipment policy (4.3.4)• UNDP- administered funds (3.14)

United Nations Special Fund (1.2.1)

United Nations Volunteers programme (UNV) (6.4.2 para.7)

Unspent funds• at end of programme or project (6.5.3)• unspent cost sharing (3.10.10)

W

Women’s participation (4.1 para.9(c)), (see gender)

UNDP Programming Manual October 1999

GLOSSARY Page 1

GLOSSARY

A Accountability: the responsibility for the results of the discharge of authority and official duties,including duties delegated to a subordinate unit or individual. Accounting system: a reporting and recording system containing books, records and controls sufficientto ensure the accuracy and reliability of programme or project financial information. This includes ensuringthat the receipt and disbursement of UNDP funds are properly identified and that budgetary categoriesapproved are not exceeded. The system must include the advances, expenditures and direct paymentsmade by UNDP. The accounting system must also be kept current, with all ledgers and journals closedout at the end of each month. Activities: actions in the context of programming, which are both necessary and sufficient for theproduction of a given output. Administrative and operational services (AOS): an arrangement and reporting facility that partiallyreimburses eligible United Nations entities and international finance institutions for the costs associatedwith their procurement and delivery of inputs for UNDP-supported programmes and projects. Advance authorization: the financial authorization issued by the resident representative to theinstitution managing the programme or project to incur expenditures and commitments for specificpurposes related to programme activities and within specified limits, during a finite period. Advance authorization of TRAC: the release of TRAC 1 resources in advance of the approval of aCCF by the Executive Board or of TRAC 2 resources by the Administrator. When the resource planningperiod extends beyond the last year of a current CCF and no new CCF has yet been approved, theRPF permits advance release of TRAC resources pending the finalization of the new CCF and TRAC 2assignments. Agency: an organization involved in partnership with UNDP in development assistance; generally aspecialized organization of the United Nations system. Agency support costs: See Support costs. Agenda 21: an internally agreed plan of action for the next century, which was adopted in 1992 at theUnited Nations Conference on Environment and Development in Rio de Janeiro. Aid coordination: the process by which a recipient Government integrates and plans internationalassistance in support of national goals, priorities and strategies. Aid management: the process by which a recipient Government integrates external and internalresources in the implementation of its development programmes and activities. Allocation: a financial authorization issued by the Administrator to an executing agent to incurexpenditures and commitments for specific purposes related to UNDP programme activities and withinspecified limits, during a definite period.


GLOSSARY Page 2

Allotment: a financial authorization issued by the Administrator to an official or to a unit in theorganization to incur obligations for specific purposes related to the biennial support budget and withinspecified limits, during a definite period. Appraisal: the process of checking the quality of a programme or project design prior to approval. Approval: the process of signing a project or programme support document, whereby UNDP funds arecommitted. Audit: an examination or review that assesses and reports on the extent to which resources are beingmanaged in accordance with policy and procedures. Authority: the power to decide, certify or approve.

B Backstopping: activities to review, support and advise on the smooth implementation of a programmeor project. Baseline data: data that describe the situation to be addressed by a programme or project that serve asthe starting point for measuring changes in the situation and the performance of that programme orproject. Benchmark: an intermediate target to measure progress in a given period using a certain indicator. Biennial support budget: the budget covering the costs of UNDP related to programme support,management and administration, and support to operational activities of the United Nations. Budget lines and sublines: lines of a programme or project budget which reflect a budget allocationand its related use or source. These are used to identify by purpose, duration and estimated cost discreteinputs planned under each of the main budget components (e.g., personnel, equipment, training,contracts, miscellaneous).

C Capacity: the knowledge, organization and resources needed to perform a function. Capacity development: the process by which individuals, groups, organizations, institutions andcountries develop, enhance and organize their systems, resources and knowledge, all reflected in theirabilities, individually and collectively, to perform functions, solve problems and achieve objectives.Capacity development is also referred to as capacity-building or strengthening. Carrying capacity: maximum population that a given ecosystem can support indefinitely under a givenset of environmental conditions. CEDAB (Central Evaluation DataBase): corporate institutional memory on UNDP programme andproject evaluations. It is a source of information on lessons learned that can guide the formulation ofnew programmes and projects.


GLOSSARY Page 3

Civil society: individuals and groups, organized or unorganized, who interact in social, political andeconomic domains. Civil society organizations: the multitude of associations around which society voluntarily organizesitself and which represent a wide range of interests and ties, from ethnicity and religion, through sharedprofessional, developmental and leisure pursuits, to issues such as environmental protection and humanrights. Cluster evaluation: an evaluation of a set of related projects or programmes. Co-financing: the generic term covering cost-sharing arrangements (or contributions), trust funds andparallel financing arrangements. Combined delivery report (CDR): a report that contains all disbursements made for a programme orproject under national execution and NGO execution. The UNDP Headquarters Accounts Section issuesthe CDR four times a year, 31 March, 30 June, 30 September and 31 December. Common country assessment (CCA): a country-based process for reviewing and analysing thenational development situation; and identifying key issues as a basis for advocacy, policy dialogue andpreparation of the UNDAF. The findings from this exercise are described in a CCA document. Conclusion: a reasoned judgement based on a synthesis of empirical findings or factual statementscorresponding to a specific circumstance. Contributions: cash or in-kind resources (the latter being in the form of goods or services) entrustedto UNDP by States Members of the United Nations and other entities. Contributions are used to coverUNDP programme activities as well as programme support, management and administration, andsupport to operational activities of the United Nations, including costs associated with theadministration of contributions received for special purposes. (See also Donations.) Contribution-in-cash: a payment made in cash to a programme or project. Contribution-in-kind: a non-cash contribution in the form of goods and services made to aprogramme or project. Cost-sharing: a co-financing modality under which contributions from other resources can bereceived as a supplement to regular resources for specific UNDP programme activities. Such activitiesmust be consistent with the mandate of UNDP. Country cooperation framework (CCF): a document that outlines UNDP cooperation in a country.The framework identifies the objectives for UNDP support to national plans and programmes that areconsistent with the poverty-elimination goals of UNDP. It highlights the programme areas, the intendedstrategies and results, the management arrangements and the financial scope. Country strategy note (CSN): a government document, prepared with the assistance of and incollaboration with United Nations organizations led by the resident coordinator. The CSN establishes amutually agreed upon strategy for a coherent and coordinated United Nations-system response toneeds identified by recipient countries in their plans, strategies and priorities. The CSN must state thepriority areas for United Nations-system support for national development efforts and the principal


GLOSSARY Page 4

policy directions for operations and the respective roles of individual organizations of the UnitedNations system. Credit: an activity that refers to lending to beneficiaries by an institution supported by a UNDP micro-capital grant.

D Decentralization: the general term for a transfer of authority and/or responsibility for performing afunction from high-level management to lower-level units. Delegation: transferring the authority to plan and implement decisions concerning defined activities.Delegation of authority is not concomitant with the delegation of accountability.

Designated institution: the entity responsible for managing a programme or project.

Development objective: the national development objective or the objective of the national programme.

Development support services (DSS): an arrangement that enables resident representatives to obtainindependent, short-term expert advice, nationally or regionally. Funds for DSS are provided in line 3.1 ofthe UNDP financial framework. Direct beneficiaries: institutions or individuals who receive support aimed at strengthening their capacityto undertake development initiatives. In micro-level interventions, the direct beneficiaries and the targetgroups may be the same. Direct execution: a management arrangement whereby UNDP itself assumes responsibility for themanagement of a project. Direct payment: payment made by UNDP to a supplier or contractor on behalf of the institutionmanaging the programme or project, under national execution or NGO execution. Such payments are nottreated as advances of funds. Disbursement: the actual amount paid. Donations: contributions made by private organizations or individuals to programmes and funds underthe authority of the Administrator.

E Earmarking: at the corporate level is the percentage of UNDP’s regular (core) resources set aside byExecutive Board decision for support to specific programmes, programme support, and biennium supportbudget purposes. An earmarking is also a notional amount, not yet approved, that is set aside for futurecommitment to a specific programming activity. Ecosystem: is a self-sustaining and self-regulating community of organisms interacting with each otherand with the environment.


GLOSSARY Page 5

Effectiveness: the extent to which a programme or project achieves its objectives. Empowerment: the expansion of people’s capacities and choices, the ability to exercise choice basedon freedom from hunger and deprivation, and the opportunity to participate in, or endorse, decision-making. Enabling environment: conditions surrounding an activity or system that facilitate the fulfillment of thepotential of that activity or system, e.g., supportive laws and policies. Environment: the combination of external conditions that affect or interact with an organism or otherspecified system during its lifetime. Environment in the usual sense refers both to natural resourcesand ecological conditions that affect and can support development. The natural environment includesthe land and water ecosystems, climatic conditions and living resources (fauna and flora). Environmental impact assessment (EIA) : a tool for planning and decision-making concerned withidentifying, predicting and evaluating the potential environmental effects of public and privatedevelopment activities. Environmental management (EM): the strategy by which human activities that affect theenvironment are organized with a view to maximizing the well-being of people and to preventing andmitigating potential problems by addressing their root causes. Equity: impartial or just treatment, requiring that similar cases be treated in similar ways. Evaluation: is a time-bound exercise that attempts to assess systematically and objectively therelevance, performance and success of ongoing and completed programmes and projects. Execution: the management of a specific UNDP-supported programme or project, which includesaccountability for the effective use of UNDP resources. Executive Committee (EC): the committee of the most senior officials in UNDP; it assists theAdministrator in reviewing new as well as revised policies and procedures proposed for his/herapproval. Exit strategy: the plan for phasing out UNDP country office support to national execution, includingcapacity-building measures. Expendable equipment: items valued at less than $1,000. Expenditures: total charges incurred whether paid or unpaid, i.e., the sum of disbursements andunliquidated obligations for the current year in respect of UNDP programme activities and for thebiennium in respect of the biennial support budget.

F Feasibility: the coherence and quality of a programme or project strategy that makes successfulimplementation likely. Feedback: (1) as a process, feedback consists of taking information from monitoring and evaluation


GLOSSARY Page 6

activities and using it for decision-making and promoting learning in an organization. (2) Feedback as aproduct refers to the information generated through monitoring and evaluation, which may includefindings, conclusions, recommendations, and lessons from experience. Financial report: a document produced by the designated institution under national execution and NGOexecution that records the current period expenditures against any previous advances of funds, calculatesthe remaining balance and requests the advance for the next period based on the programme or projectwork plan and budget. Finding: a factual statement on a programme or project based on empirical evidence gathered throughmonitoring and evaluation activities. Formulation: the process by which an initial idea for cooperation is developed into a formal document(PSD or project document) through which UNDP commits resources.

G Gender-mainstreaming: the systematic integration of gender equality objectives into organizationalpolicies, programmes, resource allocations and organizational systems and practices. It is amethodology to ensure that women and men participate equally in the development process. Global cooperation framework: UNDP programme activities of worldwide significance; indicates theproposed use of UNDP resources towards the achievement of the global development objectivesconcerned. Global programming: programming of UNDP cooperation to implement global mandates and torespond to global development opportunities and challenges. Governance: the exercise of political, economic and administrative authority in the management of acountry’s affairs at all levels. Governance is a neutral concept comprising the complex mechanisms,processes, relationships and institutions through which citizens and groups articulate their interests,exercise their rights and obligations and mediate their differences. Government cash counterpart contribution (GCCC): an arrangement in which a Governmentmakes local currency contributions to finance locally available project inputs as may be agreed in theprogramme or project document. Government contributions to local office costs (GLOC): contributions in the form of cash, or byprovision in kind of specific goods, services and facilities that the host Government makes towards theexpenses of maintaining the UNDP country office. Government coordinating authority: the focal point on behalf of a Government that has overallresponsibility for UNDP-supported activities and communicates with UNDP on programme and projectmatters. Government cost sharing: the modality by which a programme country Government allocates its ownfunds as a contribution to a UNDP-supported programme or project.


GLOSSARY Page 7

Government counterpart contribution: the agreed share of project costs to be contributed in cash or inkind by the recipient Government. (See also GCCC.) Guidelines: tools to facilitate and guide certain actions and processes, usually outlining steps or tasks tofollow. Immediate objective: the purpose or short-term goal representing the desired result that a programmeor project seeks to achieve. The immediate objective is also referred to as the programme supportobjective. Impact: the result of a programme or project in relation to the development objectives or long-term goals.They are the changes that the intervention helped bring about. Indicative planning figures (IPFs): until 1996, the regular (core) resources available from UNDPduring a specified period for financing assistance to country and intercountry programmes and projects.The IPF was replaced by the TRAC system. Indicator: a signal that helps to measure change in terms of quantity, quality and timeliness. Inputs: the personnel, goods and services used to carry out programme or project activities. Input-output budgeting: budgeting that organizes outputs, activities and inputs so that outputs can beplanned and monitored according to their respective costs. Inter-agency letter of agreement (IALA): a document delineating the responsibilities of a UnitedNations agency collaborating with another United Nations agency that is managing a UNDP-supportedproject. Intercountry: activities carried out in cooperation with two or more countries. Inter-office voucher (IOV): a form that records payments made by country offices. The form is filled outeach month by country offices and forwarded to the UNDP Accounts section. Inventory: a list of all non-expendable equipment valued at more than $1,000.

J Joint Consultative Group on Policies (JCGP): an inter-agency forum which consisted of UNDP,UNICEF, WFP, UNFPA and IFAD. Collaboration on inter-agency matters now takes place through theUnited Nations Development Group (UNDG).

L Least developed countries (LDCs): countries recognized by the United Nations as low-incomecountries encountering long-term impediments to economic growth, particularly, low levels of humanresources development and severe structural weaknesses. The main purpose of constructing a list is toguide donor agencies and countries in allocating development assistance.


GLOSSARY Page 8

Legitimacy: the degree to which a government’s procedures for making and enforcing laws areacceptable to the people. A legitimate system is legal, but more important, citizens believe in itsappropriateness and adhere to its rules. Lesson learned : learning from experience that is applicable to a generic situation rather than to aspecific circumstance. Letter of agreement (LOA): a document delineating the responsibilities of two parties to the agreement,the activities for which the parties will be responsible, and the corresponding financial arrangements. Local office costs: See government contributions to local office costs (GLOC). Logical framework: also referred to as “ logframe”; is a methodology that logically relates the mainelements in programme and project design and helps to ensure that the intervention is likely to achievemeasurable results. The “logframe matrix” can be used to summarize and ensure consistency amongobjectives, outputs, activities and inputs, and to identify important risks or assumptions.

M Management services: provide managerial and administrative support to programmes and projects atthe request of the Government. Management support unit (MSU): established to support the management and administration ofprogrammes and projects, where these tasks cannot be handled by existing government mechanisms. Micro-capital grant: financial input to a programme or project not exceeding $150,000 to supportNGOs and community-based organizations. Monitoring: a continuing function that aims primarily to provide programme or project management andthe main stakeholders of an ongoing programme or project with early indications of progress or lackthereof in the achievement of programme or project objectives. Multi-year funding framework (MYFF): UNDP's principal strategic planning instrument as acorporate entity. It consists of two basic elements: (a) a strategic results framework (SRF); and (b) anintegrated resources framework that brings together all financial allocations for programme,programme support, support to the United Nations and management and administrative costs.

N National execution: the management of a programme or project in a specific programme countrycarried out by an eligible government entity of that country. National programme: a coherent set of interrelated policies, strategies, activities and investmentsdesigned to achieve a specific, time-bound national development objective or set of objectives. It isusually represented by a formal government document that outlines all requirements as well asmanagement arrangements.


GLOSSARY Page 9

National Technical Cooperation Assessment and Programme (NATCAP): a broad assessment oftechnical cooperation needs conducted by UNDP at the request of a Government with the objective ofenabling the Government to strengthen its ability to direct, manage and control technical cooperationinputs from all sources of assistance. As a planning mechanism, a NATCAP provides a framework forcoordination of technical cooperation programmes from all donor sources and a link to countryprogramming. Natural resources: all those renewable elements of the ecosphere, such as water and terrestrial andaquatic biomass; non-renewable elements, such as land in general, minerals, metals and fossil fuels;and semi-renewable elements, such as soil quality and the assimilative capacity of the environment. Net contributor countries: programme countries with GNP per capita above $4,700 to whichspecific programming arrangements apply. Non-credit: an activity that refers to UNDP support to an institution which does not involve lendingby that institution. Non-expendable equipment: refers to items valued at $1,000 or more. Non-governmental organization (NGO): any non-profit organization, group or institution thatoperates independently from a Government and has humanitarian or cooperative, rather thancommercial objectives. NGO execution: a management arrangement whereby an NGO assumes responsibility for themanagement of a UNDP-supported project.

O Objective: the purpose or goal representing the desired result that a programme or project seeks toachieve. Obligation: an engagement involving a liability against the resources of the current year in respect ofUNDP programme activities and the current biennium in respect of the biennial support budget. Operating fund account (OFA): a financial account that records UNDP advances of funds anddisbursement by the institution designated for the programme or project under national execution andNGO execution. Gains and losses resulting from fluctuations in the United Nations rate of exchange arealso recorded in the OFA. Operating unit: a country office, a regional bureau or a trust fund. Operational policies and procedures: all UNDP policies and procedures whether in administration,finance, personnel or programme. Other resources: (also referred to as non-core resources) are the resources of UNDP, other than regular(or core) resources, which are received for a specific programme purpose consistent with the mandate ofUNDP.


GLOSSARY Page 10

Outcomes: results of a programme or project relative to its immediate objectives that are generated bythe programme or project outputs. Under the overall UNDP results framework, outcomes are changes indevelopment conditions that UNDP interventions are seeking to support. They are generally the results ofcollective interventions of development partners and not the results of a single intervention. Outputs: tangible products, including services, of a programme or project that are necessary to achieveits objectives.

P Parallel financing: an arrangement in which UNDP and other bilateral and or multilateral donorsagree in advance on specific parts of a programme to be financed by each separately, and wherebyeach party is responsible for the resources it contributes and for carrying out their respectivecomponents of the programme. Participation: taking part in an activity. Effective participation means individuals have an adequate andequal opportunity to voice their concerns and to express their preferences. Participation can occur directlyor through legitimate representatives. Performance: the extent to which a programme or project is being implemented in an effective andefficient manner. Personnel: staff of an organization and other persons employed by the organization, under othercontractual arrangements, to perform services for UNDP programme activities or for programmesupport. Pipeline: an accumulation of planned programme or project activities for which UNDP support isbeing considered. Policy: a corporate, national or other course or plan of action that directs the operations in a certaindomain or sector; it consists of strategic goals and guidelines on how they are to be achieved. Pollution: undesirable change in the physical, chemical or biological characteristics of the air, waterand land, which can threaten the health or survival of humans or other living organisms. Preparatory assistance (PA) : the provision of UNDP assistance to a Government, prior to theapproval of full assistance for the implementation of a PSD or project, for the purpose of projectformulation or for undertaking other preliminary work related to the programme or project. Approval ofPA does not constitute a commitment to approve UNDP assistance to the project. Principal project representative (PPR): In the case of regional programmes and projects, theresident representative in the host country will normally be appointed as the PPR, with primaryresponsibility for the monitoring and evaluation of the regional programme or project in cooperationwith the executing agent and the resident representatives in the other participating countries. Procedures: steps that set out clearly what is to be done by whom in order to translate a policy intoaction. They are described and disseminated in manuals and staff members can be held accountablefor their application (See also Guidelines).


GLOSSARY Page 11

Procurement: the process of acquiring inputs for a programme or project. Programme: 1. a time-bound intervention similar to a project but which cuts across sectors, themes orgeographic areas, uses a multi-disciplinary approach, involves more institutions, and may be supported byseveral different funding sources. 2. an independent accounting entity, established by a resolution ofan appropriate legislative organ, which specifies in whom responsibility for both executive direction andlegislative guidance is vested. Programme activities: activities funded from UNDP resources and directly associated with theaccomplishment of UNDP’s mandate, through either projects or support to national programmes(coherent sets of interrelated policies, strategies, activities and investments designed to achieve aspecific time-bound national development objective or set of objectives). UNDP programme activitiesare planned and carried out through the means of a signed project document or PSD and its revisions,covering the agreed arrangements for the implementation of UNDP programme activities. Programme advisory committees (PACs): committees established in country offices and atheadquarters in each bureau, fund or programme to review and make recommendations on the quality ofa programme or project. Programme approach: a process which allows Governments to articulate national priorities and realizesustainable human development objectives through a coherent and participatory national programmeframework. It permits all donors, under government leadership, to support one or several components ofthe national programme framework. Programme logistical support (PLS): a project or a component of a project or PSD that provideslogistical support to programmes and projects. Programme Management and Oversight Committee (PMOC): the committee of senior managersresponsible for examining and endorsing new/revised programme policies for subsequent submissionto the Executive Committee, for approving related procedures, and for ensuring consistency of thesepolicies and procedures with the intent and principles of UNDP 2001. PMOC Sub-committee: the committee of principal units responsible for developing policies andprocedures, and producing the UNDP manuals, that ensure the coordination of UNDP operationalpolicies and procedures. Programme support: within the context of the form of presentation of the biennial support budget, thisrefers to organizational units whose primary function is the development, formulation, delivery andevaluation of UNDP’s programmes. This will typically include units that provide backstopping ofprogrammes on a technical, thematic, geographic, logistical or administrative basis. Programme support document (PSD): the legal instrument that UNDP uses to define its assistance toan integrated national programme. The PSD allows UNDP to offer assistance to one or more componentsof a national programme. Programme support objective: the purpose or short-term goal representing the desired result that aprogramme seeks to achieve. The programme support objective is also referred to as the immediateobjective.


GLOSSARY Page 12

Project: in the context of UNDP cooperation, a separately identified development undertaking of one ormore Governments and assisted by UNDP. It is a time-bound intervention that consists of a set ofplanned, interrelated activities aimed at achieving defined objectives. Project delivery reports (PDRs): quarterly expenditure statements issued by United Nations agencies. Project document: a legal agreement which binds the signatories to undertake defined activities and toprovide specific resources over a fixed period of time in order to reach agreed objectives.

R Rating system: an instrument for forming and validating a judgement on the relevance, performanceand success of a programme or project through the use of a scale with numeric, alphabetic and/ordescriptive codes. Recommendation: proposal for action to be taken in a specific circumstance, including the partiesresponsible for that action. Region: one of the following five geographic areas in which UNDP works: Africa, Arab States, Asiaand the Pacific, Europe and the Commonwealth of Independent States, and Latin America and theCaribbean. Regional cooperation framework (RCF): a document articulating UNDP programme activities ofregional significance. Includes a resource mobilization table outlining the resources expected to bemobilized and used towards the achievement of the regional development objectives concerned. Regional programming: programming of UNDP cooperation for groups of countries at the subregionalor regional level. Regional programming involves activities that are common to several countries withinone region. Regular resources: the resources of UNDP that are co-mingled and united. Include pledges ofvoluntary contributions, other governmental or intergovernmental payments, donations from non-governmental sources and related interest earnings and miscellaneous income. Relevance: the degree to which the objectives of a programme or project remain valid within theimmediate context and external environment of that programme or project. Renewable resource: resource that potentially cannot be used up because it is constantly or cyclicallyreplenished or regenerated. Resident coordinator: the coordinator of the operational activities for development of the UnitedNations system within a country. The Secretary-General of the United Nations designates the residentcoordinator. The UNDP resident representative is normally the resident coordinator. Resource mobilization strategy: the strategy used to secure funds for UNDP-supported programmes.UNDP places highest priority on mobilizing resources from a variety of contributors.


GLOSSARY Page 13

Resource mobilization target (RMT): the United States dollar amount reflected in the RMT table of theCCF or RCF that UNDP and Governments aim to mobilize to cover the costs of implementing theprogrammes and projects in the framework. Results: a broad term used to refer to the effects of a programme or project. The terms outputs,outcomes, and impact describe more precisely the different types of results at various levels ofaggregation. Revision: making substantive or financial adjustments to a programme support or project document. Risks: factors outside the control of the parties responsible for undertaking a programme or projectthat may adversely affect implementation. They can affect delivery of inputs, carrying out of activities,production of outputs and achievement of objectives. Round tables: periodic meetings between the Government of a programme country and its major aidpartners (donor Governments and multilateral financing organizations) for the purpose of mobilizingadditional external assistance. As designated lead agency for the round-table process, UNDP assists theGovernment in the planning, management and administration of round-table activities.

S Stakeholders: people, groups or entities that have a role and interest in a programme or project. Theyinclude target groups, direct beneficiaries, those responsible for ensuring that the results are produced asplanned, and those accountable for the resources that they provide to the programme or project. (SeeTarget groups and Direct beneficiaries.) Standard basic assistance agreement (SBAA) : the legal document between a programme countryGovernment and UNDP that specifies the basic conditions under which UNDP assists the Governmentin carrying out its development programmes. The agreement specifies the UNDP privileges andimmunities, the forms of assistance, the management arrangements, the role of the Government,resources, costs and general provisions. Strategic evaluation: an evaluation of a particular issue where timing is especially important owing tothe urgency of the issue which poses high risks to and may have generated widely conflicting viewsfrom stakeholders. Strategic framework: a planning tool that outlines political, humanitarian and development programmesfor recovery in post-crisis settings and promotes coherence of efforts between national and internationalpartners. The framework is similar to a national plan or a UNDAF and may be used where there is nofunctioning government. Strategic results framework (SRF): a planning instrument, consisting of seven categories in whichUNDP aims to achieve results. It is the primary planning instrument for country, regional and globalprogrammes and represents a key management tool for UNDP headquarters and the country offices andfunds associated with UNDP. Success: a favourable programme or project result that is assessed in terms of effectiveness, impact,sustainability and contribution to capacity development.


GLOSSARY Page 14

Successor programming arrangements (SPA): the arrangements for the distribution and use of UNDPregular resources decided by the UNDP Executive Board in its decision 95/23. These arrangementsintroduced the TRAC system and three-year rolling resource planning, and replaced the previous IPF five-year cycle. Support costs: the partial reimbursement of costs incurred by an eligible United Nations entity in itsadministration of UNDP programme or project activities. (See also AOS, SPPD and STS). Support for policy and programme development (SPPD): an arrangement that reimburses eligibleUnited Nations agencies and United Nations regional commissions for a portion of their costs in providingspecific policy and programme development services to UNDP programming. Support for technical services (STS): an arrangement that reimburses United Nations agencies andUnited Nations regional commissions for a portion of their costs in providing technical support services toUNDP programmes and projects, at various stages of the programme or project cycle. Sustainability: with regard to development assistance, means that the individuals, institutions andsystems assisted by UNDP continue to function effectively after external support has ceased and, in fact,have the capacity to improve continuously their ways of working. Sustainable development: received wide international attention following its endorsement in the 1987report by the World Commission on Environment and Development. The Commissioners defined it asdevelopment that meets the needs of the present without limiting the potential to meet the needs offuture generations. Sustainable human development (SHD): an integrated, multi-disciplinary approach to development,which places people at the centre of the development process and advocates the protection of lifeopportunities for present and future generations while respecting the natural systems upon which all lifedepends. Synergy: interaction of two or more efforts in which the overall effect is greater than that resulting fromthe separate efforts.

T Target groups: the groups of people that a programme or project intends to benefit. Third-party cost sharing: the modality by which bilateral donor Governments, international financialinstitutions and private entities contribute funds to individual programmes and projects. A standard cost-sharing agreement is the legal agreement between UNDP and the donor. TRAC (Target for resource assignment from the core): the level of funding that UNDP expects tomake available from regular (core) resources during a specified period to finance UNDP programming atthe country level. TRAC 1, TRAC 2 and TRAC 3: The three-tier TRAC replaces the former IPF system. TRAC 1 isearmarked by country according to the distribution methodology approved by the Executive Board; TRAC-2 is earmarked by region for subsequent application at the country level based on programme quality;


GLOSSARY Page 15

TRAC-3 sets aside 5 per cent of UNDP regular (core) resources for countries in special developmentsituations. Transparency: sharing information and acting in an open manner. Transparency in procurementmeans that the selection process gives equal information to all candidates and suppliers, with clearselection criteria and that several persons participate in the decision-making. Trust fund: a separate accounting entity established by the Administrator under which UNDPreceives contributions in addition to the regular (core) resources to finance UNDP programme activitiesagreed with the contributor.

U Umbrella projects: encompass project activities of limited scope and duration that cannot beincorporated into existing projects and for which the formulation of a stand-alone project isunwarranted. United Nations agency execution: a management arrangement whereby a United Nations agencyassumes responsibility for the management of a UNDP-supported programme or project. United Nations Development Assistance Framework (UNDAF): a planning and resourcesframework for the country programmes and projects of agencies in the United Nations system. It isdeveloped on the basis of the analysis and assessment of the common country assessment (CCA).

UNDP-administered funds: also known as funds administered by UNDP or funds in association withUNDP, are special trust funds established by the Administrator at the request of the Secretary-Generalto respond to resolutions of the Security Council or General Assembly.

UNDP financial regulations and rules: a regulation is a decision of the Executive Board thatregulates the functioning of UNDP; a rule is a decision of the Administrator on how UNDP applies theregulations.

United Nations exchange rate : the official monetary exchange rate between US dollars and othercurrencies used by the United Nations for all financial transactions.

V

Verifier or “Means of verification”: the source of data or information to verify progress using certainindicators; used in logical framework analysis.

Voluntary contributions: contributions to UNDP regular resources from Governments of StatesMembers of the United Nations, of the specialized agencies or of the International Atomic EnergyAgency. (See Contributions.)


ABBREVIATIONS Page 1

Abbreviations

ACC Administrative Committee on CoordinationACP Advisory Committee on ProcurementAFOAS Automated field office accounting systemALD Activities of limited duration (Appointment for)AOS Administrative and operational servicesAPL Authorized programming levelsAPR Annual programme/project reportAR Annual reviewBDP Bureau for Development PolicyBFAS Bureau for Financial and Administrative ServicesBPAC Bureau Programme Advisory CommitteeBPRM Bureau for Planning and Resource ManagementBREA Bureau for Resources and External AffairsCBO Community-based organizationCCA Common country assessmentCCF Country cooperation frameworkCCPOQ Consultative Committee on Programme and Operational QuestionsCDR Combined delivery reportCEDAW Convention on the Elimination of all Forms of Discrimination Against

WomenCMBL Component and budget lineCOA Country office administrative costCPO Chief Procurement OfficerCSDS Countries in special development situationsCSN Country strategy noteCSO Civil society organizationCTA Chief Technical AdvisorDESA Department of Economic and Social AffairsDEX Direct executionDOPP Division for Operational Policies and ProceduresDRM Division for Resource MobilizationDRPC Division for Resources Planning and CoordinationDSS Development support servicesEC Executive CommitteeECA Economic Commission for AfricaECE Economic Commission for EuropeECLAC Economic Commission for Latin America and the CaribbeanECOSOC Economic and Social CouncilEO Evaluation OfficeEPTA Expanded Programme of Technical Assistance



ERC Emergency Relief CoordinatorERD Emergency Response DivisionESCAP Economic and Social Commission for Asia and the PacificESCWA Economic and Social Commission for Western AsiaFAO Food and Agriculture Organization of the United NationsFIMS Financial information management systemGA General AssemblyGAM General Administration ManualGCCC Government cash counterpart contributionGCF Global cooperation frameworkGDR Government disbursement reportGEF Global Environment FacilityGLOC Government contribution to local office costsIAEA International Atomic Energy AgencyIALA Interagency letter of agreementIAPSO Inter-Agency Procurement Services OfficeICAO International Civil Aviation OrganizationICPD International Conference on Population and DevelopmentIFAD International Fund for Agricultural DevelopmentIFC International Finance CorporationIFI International Financiall InstitutionILO International Labour OrganizationIMF International Monetary FundIMO International Maritime OrganizationIOM International Organization of MigrationIOV Interoffice voucherIPF Indicative planning figureITC International Trade CentreITU International Telecommunications UnionJCGP Joint Consultative Group on Policy

(UNICEF, UNDP, UNFPA, WFP, IFAD)LCC Local Contracts CommitteeLOA Letter of agreementLPAC Local Programme Advisory CommitteeMOU Memorandum of understandingMSA Management Services AgreementMSU Management Support UnitMYFF Multi-year funding frameworkMYFFR Multi-year funding framework reportNATCAP National technical cooperation assessment and programmesNCC Net contributor countryNEX National executionNGO Non-governmental organizationNHDR National human development report



NLTPS National long-term perspective studyOAPR Office of Audit and Performance ReviewODS Ozone- depleting substancesOFA Operating fund accountOHR Office of Human ResourcesOSG Operations Support GroupPA Programme approach or preparatory assistancePAC Programme Advisory CommitteePDR Project/Programme Delivery ReportPEIS Project/Programme evaluation information sheetPLS Programme logistical supportPMOC Programme Management Oversight CommitteePPR Principal project representativePSD Programme support documentPSO Programme support objectivePSRG Private Sector Review GroupRCF Regional cooperation frameworkRC Resident coordinatorRCS Resident coordinator systemRMT Resource mobilization targetROAR Results-oriented annual reportRPF Resource planning frameworkSAS Strategic area of supportSBAA Standard basic assistance agreementSBEAA Standard basic executing agency agreementSEED Sustainable Energy and Environment DivisionSHD Sustainable human developmentSOF Source of fundsSPPD Support services for policy and programme developmentSRC Support to the resident coordinatorSRF Strategic results frameworkSSA Special services agreementSTS Support for technical servicesSUM Special Unit for MicrofinanceSU/TCDC Special Unit for Technical Cooperation among Developing CountriesSURF Subregional resource facilityTCDC Technical cooperation among developing countriesTOKTEN Transfer of knowledge through expatriate nationalsTOR Terms of referenceTPR Tripartite reviewTRAC Target for resource assignment from the coreUN United Nations



UNCDF United Nations Capital Development FundUNCT United Nations Country TeamUNCED United Nations Conference on Environment and DevelopmentUNCHS United Nations Centre for Human SettlementsUNCTAD United Nations Conference on Trade and DevelopmentUNDAF United Nations Development Assistance FrameworkUNDMT United Nations Disaster Management TeamUNDP United Nations Development ProgrammeUNESCO United Nations Educational, Scientific and Cultural OrganizationUNFPA United Nations Population FundUNICEF United Nations Children’s FundUNIDO United Nations Industrial Development OrganizationUNIFEM United Nations Development Fund for WomenUNITAR United Nations Institute for Training and ResearchUNISTAR United Nations International Short-Term Advisory ResourcesUNOPS United Nations Office for Project ServicesUNSO Office to Combat Desertification and Drought (previously the United

Nations Sudano-Sahelian Office)UNV United Nations VolunteersUPU Universal Postal UnionUXO Unexploded ordnanceWFP World Food ProgrammeWHO World Health OrganizationWMO World Meteorological OrganizationWSSD World Summit for Social DevelopmentWTO World Tourism Organization

UNDP Progamming Manual April 1999

TABLE OF CONTENTS Page 1

TABLE OF CONTENTS

Foreword by the Administrator

Memo from the Associate Administrator

Transitional arrangements

Preface

Chapter and section

1.0 ABOUT UNDP1.1 Introduction1.2 Legislative framework1.3 UNDP results framework1.4 Programming framework

2.0 COUNTRY COOPERATION2.1 Outline of country cooperation2.2 The common country assessment2.3 The United Nations Development Assistance Framework2.4 The country cooperation framework2.5 Review committees

Annexes2A Consultative processes and reference documents2B Country cooperation2C Illustration of steps in preparing and approving the CCF and releasing TRAC

resources2D Sample table of contents for country cooperation frameworks2E CCF resource mobilization target table2F Considerations for quality programming2G Format for a CCF extension

3.0 RESOURCES MANAGED BY UNDP3.1 Introduction3.2 Resource mobilization3.3 TRAC 1 and TRAC 2 resources3.4 TRAC 3 - Special development situations3.5 Support services for policy and programme development3.6 Support for technical services



3.7 Administrative and operational services3.8 Development support services3.9 Technical cooperation among developing countries

3.10 Cost–sharing3.11 Contributions from the private sector3.12 Government cash counterpart contributions3.13 Trust funds3.14 UNDP – administered funds3.15 Parallel financing

Annexes3A Participants in the support cost facilities3B Third-party cost-sharing agreement between UNDP and a government: Model3C Cost-sharing agreement between UNDP and the private sector: Model3D TRAC 1.1.2 assignment form3E Summary of programme financial information

4.0 FORMULATING PROGRAMMES AND PROJECTS4.1 Policy framework4.2 Programme and project design4.3 Types of Inputs4.4 Support for formulation

5.0 PROGRAMME SUPPORT DOCUMENTS AND PROJECT DOCUMENTS5.1 Programme support document and project document formats5.2 Preparing budgets5.3 Preparing the cover page for a PSD or project document5.4 Appraisal5.5 Approval5.6 Programme and project support services

Annexes5A Table 1. Funding of the national programme5B Table 2. Objectives, outputs and monitoring indicators or benchmarks5C Table 3. Work plan for the next 12 months5D Table 4. Budget by objective and output

6.0 OPERATIONS OF PROGRAMMES AND PROJECTS6.1 Key policies6.2 Management of programmes and projects6.3 Management support6.4 Management of inputs6.5 Financial management and reporting6.6 Revisions to programme support documents and project documents6.7 Programme and project completion



6.8 AuditAnnexes

6A Capacity for programme and project management: key considerations6B Standard letter of agreement between the Government and a United Nations

agency under national execution6C Standard letter of agreement between UNDP and the Government for the

provision of support services6D Instructions for the financial report6E Standard project cooperation agreement between UNDP and the NGO6F Standard revision cover page

7.0 MONITORING, REPORTING AND EVALUATION7.1 Policy framework7.2 Monitoring and evaluation during the programme and project cycle7.3 Monitoring7.4 Evaluation7.5 Review and reporting on country and regional cooperation

Annexes7A Monitoring and evaluation policies of UNDP (Approved by the Executive

Committee on 6 June 1997)7B Field visit report form7C Annual programme/project report form7D Terminal report form7E Tripartite review report form7F Country-level evaluation plan form7G Structure and content of the country office annual report7H Structure and content of the regional-ROAR7I Structure and content of the country review report7J Contents of the terms of reference for country reviews7K Approach to clustered country reviews

8.0 GLOBAL AND REGIONAL PROGRAMMING8.1 Introduction8.2 The global cooperation framework8.3 Global projects8.4 The regional cooperation framework8.5 Regional programmes and projects

9.0 PROGRAMME SUPPORT TO THE RESIDENT COORDINATOR9.1 Background9.2 SRC funds9.3 Types of activities funded by SRC funds9.4 Management arrangements9.5 Documentation of the resident coordinator system

UNDP Programming Manual December 2000

Chapter 1: ABOUT UNDP Page 1

Contents

Page

1.0 ABOUT UNDP

1.1 Introduction

1.2 Legislative framework 1.2.1 Origin of UNDP 1.2.2 New dimensions 1.2.3 The global agenda 1.2.4 Initiatives for change

1.3 UNDP results framework 1.3.1 Rationale for the framework 1.3.2 Components of the framework

1.4 Programming framework 1.4.1 The UNDP mission 1.4.2 United Nations system collaboration 1.4.3 Key dimensions of sustainable human development 1.4.4 UNDP focus areas 1.4.5 Promoting an enabling environment for sustainable human

development

1.4.6 Poverty eradication and sustainable livelihoods 1.4.7 Gender equality and the advancement of women 1.4.8 Protection and regeneration of the environment 1.4.9 Special development situations



1.0 ABOUT UNDP

1.1 Introduction

1. The United Nations Development Programme (UNDP) was created in 1965 and has become one of the world's largest multilateral sources of grant funding for economic and social development. Funds come from the voluntary contributions of Member States of the United Nations and affiliated agencies, who have committed themselves to providing approximately $1 billion yearly to UNDP regular resources. Other funding arrangements, including cost-sharing, provide approximately $1 billion in additional resources each year.

2. UNDP helps to build capacities for sustainable human development in over 150 countries and territories. The UNDP mission statement emphasizes that, as part of the United Nations, UNDP upholds the vision of the United Nations Charter. UNDP is committed, therefore, to contributing through its work in development cooperation to United Nations system partnerships aimed at furthering the four basic aims of the United Nations organization: peace and security; humanitarian assistance; development operations; and economic and social affairs.

See the UNDP mission statement. The four aims are described in a chart in the Programming Manual Reference Centre on the UNDP Intranet.

3. The General Assembly and the Economic and Social Council establish UNDP overall policies and review its operations, through the 36-member Executive Board. The Administrator manages UNDP and is accountable to the Executive Board for all aspects of UNDP operations, at global, regional, and country levels. UNDP headquarters are located in New York City and operations are managed through a network of 134 country offices.

See circular, UNDP/ADM/97/58 on the new UNDP headquarters organizational structure.

4. The UNDP Administrator chairs the United Nations Development Group (UNDG), a committee of the heads of all United Nations funds, programmes and departments that carry out operational activities for development. This committee promotes coherent United Nations action at the country level through the resident coordinator system and specific instruments such as the common country assessment (CCA) and the United Nations Development Assistance Framework (UNDAF).

See 2.2 for information on the CCA and 2.3 on the UNDAF.

5. The resident representative is the Administrator’s designated representative at the country level. The resident representative normally serves as resident coordinator, who is responsible to the Secretary-General through the Administrator, for coordinating United Nations system operational activities at the country level. In addition, based on specific agreements, the resident representative also represents certain United Nations organs, funds, agencies and departments.

For more information on the resident coordinator system, see 9.0.



6. In the context of the Mission statement and the 2001 project for

management change, UNDP staff and management have agreed on the overall values guiding the work of the organization, namely, a results orientation, integrity in all aspects of work, and respect for the diversity of staff and development partners.

See the Statement of Values in the Programming Manual Reference Centre on the UNDP Intranet.

1.2 Legislative framework

1. The key General Assembly and UNDP Executive Board decisions that have determined UNDP operations and organization are given below in chronological order as a guide to understanding the evolution of the policies and procedures contained in this manual.

1.2.1 Origin of UNDP

1. Predecessors of UNDP. UNDP has its origins in the United Nations Expanded Programme of Technical Assistance (EPTA). Created in 1949, EPTA was the first large-scale effort by the United Nations system to use technical assistance for the economic and social development of developing countries. It channeled technical knowledge and skills to developing countries through advisors and fellowships arranged by the United Nations specialized agencies. The other UNDP predecessor organization, the United Nations Special Fund, was established in 1958 to complement and expand on the work of EPTA. With a larger pool of funds, the Special Fund enabled developing countries to finance more complex projects.

See Economic and Social Council resolution 222(IX) of 1949.

2. UNDP created. In 1965, the General Assembly confirmed the consolidation of the Expanded Programme of Technical Assistance and the United Nations Special Fund into the United Nations Development Programme (UNDP). The new UNDP began operations on 1 January 1966. Its Governing Council approved projects and provided policy guidance and direction.

See General Assembly resolution 2029 (XX) of 1965.

3. The Consensus resolution. Following a comprehensive study undertaken by Sir Robert Jackson on the capacity of the United Nations system to assist developing countries, the General Assembly decided on important changes in UNDP organization and operations. They included country programming based on national plans, priorities and objectives; and a system of five-year indicative planning figures (IPF) for resource allocation. Key elements of the UNDP organizational structure were changed, including the creation of the regional bureaux to act as the link between the Administrator and UNDP resident representatives for UNDP regional and country- level activities.

This important resolution is often referred to as the Consensus resolution. See General Assembly resolution 2688(XXV) of 1970.



1.2.2 New dimensions

1. National execution. To make development assistance more effective, the General Assembly decided in 1975 that UNDP activities should be seen in terms of outputs or results rather than in terms of a package input of foreign experts, fellowships and imported equipment. In addition, it decided that the basic purpose of technical cooperation was to promote self-reliance in developing countries. In response, UNDP adopted a flexible policy on providing inputs and encouraged Governments and institutions in recipient countries to assume responsibility for undertaking projects. This decision led to the introduction of national execution as distinct from execution by United Nations specialized agencies.

See General Assembly resolution 3405 (XXX) of 1975. Note: Until this time, all UNDP projects were carried out by organizations of the United Nations system.

2. TCDC. Moreover, awareness of the talent in developing countries and of the potential for self-generated development led UNDP to promote South-South exchange through technical cooperation among developing countries (TCDC). TCDC represents a philosophy of cooperation aimed at utilizing capacities and experience of developing countries in support of their development goals and objectives.

UNDP manages a fund to promote TCDC. See 3.9 for information on this fund.

3. The resident coordinator. Through the “restructuring” resolution, the General Assembly decided in 1977 that a single resident coordinator in each country should be responsible for the coordination of the operational activities for development at the country level of the United Nations system. As a follow-up to the 1977 “restructuring” resolution, the General Assembly agreed on the terms of reference of the resident coordinator and determined that the UNDP resident representative would normally be appointed as resident coordinator.

See General Assembly resolution 32/197 of 1977 and General Assembly resolution 34/213 of 1979.

4. The programme approach. In 1989, the General Assembly called for the development of a programme approach, encouraging governments to formulate, in accordance with their own development plans and priorities, integrated national programme frameworks that would set out how they wished to cooperate with the organizations of the United Nations system. It was anticipated that the development of such frameworks would enable the United Nations system to support more effectively the priorities of developing countries and to be more country-focused. UNDP was called upon to develop more programme-oriented mechanisms for the provision of technical cooperation, as opposed to the traditional project approach.

See General Assembly resolution 44/211 of 1989.



5. National execution is the norm. At the same time as encouraging

the programme approach, the General Assembly also stressed the importance of using and strengthening national capacities to undertake programmes and projects. This led to the acceptance of national execution as the normal manner in which UNDP-supported programmes and projects are carried out.


1.2.3 The global agenda

1. Since 1990, the international community has convened 12 major conferences, which have committed Governments to address urgently some of the most pressing problems facing the world today. Taken together, these high profile meetings have achieved a global consensus on the development agenda for the 1990s and beyond. The conferences adopted action plans that highlight key principles and call for their integration into policy and programme formulation at both the national and international levels. The Administrative Committee on Coordination (ACC) has established a framework for follow-up to the conferences, within which UNDP situates its own programming.

A list of the world conferences since 1990 is given in 9.1.4. For more information on them see the United Nations web site (http://w w w .un.org.) See 1.4.2 on the framework for conference follow -up.

1.2.4 Initiatives for change

1. UNDP Executive Board. In 1993, the Executive Board replaced the UNDP Governing Council. The Executive Board has 36 members compared to the 48 of the Governing Council, enabling its business to be handled more efficiently.


2. Programming priorities. In 1994, the Executive Board endorsed the initiatives proposed in the Administrator’s 1994 report “Initiatives for change”. The initiatives laid the groundwork for what was to become the new programming arrangements of UNDP, namely, sustainable human development (SHD) as the overall mission with three goals for UNDP. The goals are to promote SHD by strengthening international cooperation, strengthening the United Nations system, and focusing UNDP resources in four priority areas.

See Executive Board decision 94/14 of 1994. See Executive Board web site (http://www.undp.org.execbrd). See 1.4.1 for more information on the three goals.

3. Use of resources. In June 1995, the Executive Board replaced the entitlement-based IPF funding system with a merit and incentive-based system. The new resource allocation system provides incentives for quality programming that supports national efforts towards poverty eradication and SHD.

See Executive Board decision 95/23 of 1995 and annex 2F “Considerations for quality programming”.

4. Guiding principles. The Executive Board endorsed the guiding principles for quality programming and decided that these should be applied to all country, regional and global cooperation frameworks. The guiding principles are integrated into the sustainable human development programming framework and into all key programming policies.

See Executive Board decision 98/1 of 1998 and 1.4 for the programming framework.



5. Resource management. While reiterating that regular resources remain the bedrock of UNDP, the Executive Board recognized the value of other resources. In doing so, the Board stipulated that UNDP must fully recover the additional costs incurred in managing programmes and projects funded from other resources. The Board also decided that any support provided by UNDP country offices in the implementation of programmes and projects must be accompanied by capacity-building measures, including exit strategies.

See Executive Board decision 98/2 of 1998. For country office support and exit strategies, see 6.3.

6. New compact. The Executive Board committed itself in 1998 and 1999 to rebuilding the UNDP financial base to a level of US $1.1 billion as the target for regular resources in the context of a four-year multi-year funding framework. UNDP will establish an integrated results and resources framework and present the results of its work annually to the Board as the justification for the higher levels of funding foreseen.

See Executive Board decision 98/23 of 1998 and 99/1 of 1999. See 1.3 on the results framework.

7. Special development situations. A brief legislative history of UNDP involvement in special development situations can be found in the following: Executive Board documents DP/1994/13 (gives an account of the established record of UNDP in special development situations); DP/1995/15 (provides for an allocation of five per cent of UNDP core resources for special development situations); DP/1995/32 (elaborates on the purpose of TRAC line 1.1.3, introduced with its programming elements on Executive Board decision 95/23); DP/1996/21 (elaborates on the implementation arrangements for TRAC 1.1.3 and for special development situations); DP/1997/CRP.10 of 8 February 1997 (elaborates on the new programmatic areas of UNDP involvement in special development situations, in response to Economic and Social Council resolution 1995/56 on strengthening the coordination of humanitarian assistance). In accordance with General Assembly resolution 52/12B of 19 December 1997 the functions of natural disaster prevention, preparedness and mitigation were transferred from the Emergency Relief Coordinator to UNDP.

The Convention on the Prohibition on the Use, Production, Stockpiling and Transfer of Anti-personnel Mines and on their destruction came into effect in the Ottawa Treaty on 1 March 1999. Through supporting capacity-building for national mine action centres, UNDP can assist Governments in meeting their obligations under the Treaty. For the United Nations policy on mine action see the ERD Intranet site at http://intra.undp.org/erd

1.3 UNDP results framework

1.3.1 Rationale for the framework

1. A results approach aims at improving management effectiveness and accountability by defining objectives realistically, monitoring progress toward the achievement of the expected results, integrating lessons learned in management decisions and reporting on performance.

2. Results-based management is not a new concept in UNDP. The principles and decisions adopted under UNDP 2001 reinforce a results approach. One of the overall values guiding UNDP work is its results orientation. What is new in the UNDP results framework is the methodology for planning, managing and reporting on results.

For further reference on the results-based management concept see Results-oriented Monitoring and Evaluation: A Handbook



3. The Administrator has delegated the responsibility for managing

UNDP resources to the heads of individual operating units, particularly to the resident representatives. Within the context of a CCF approved by the Executive Board, most programmes and projects are now approved by resident representatives, without reference to headquarters. To enable the country office to exercise this authority effectively, UNDP has introduced methods within a results framework that make it easier for country offices to plan and manage for results. This includes support in setting realistic objectives and using indicators to monitor progress, integrating lessons learned into management decisions, and reporting on performance.

For Programme Managers, UNDP, 1997; Measuring and Managing Results: Lessons for Development Cooperation, UNDP, 1997.

4. The broad categories of results that UNDP is expected to achieve in

SHD have been established through United Nations global conferences and decisions of the Executive Board since 1994. These categories have been translated into specific goals, sub-goals and strategic areas of support.

The categories of the strategic results framework are given in 1.3.2 para.2(e) below.

1.3.2 Components of the framework

1. The four components of the results framework are the strategic results framework (SRF), the results-oriented annual report (ROAR), the multi-year funding framework (MYFF) and the multi-year funding framework report (MYFFR). Each component is described below.

See Executive Board conference room paper DP/1999/CRP.4 and Executive Board decision 98/23 of 1998. CRP.4 explains the key features of the SRF, and

2. The strategic results framework (SRF) is a planning instrument for country, regional and global cooperation frameworks and a key management tool for both headquarters and the country offices. Its main features are outlined below:

other elements outlined here. (http://www.undp.org/execbrd)

(a) The SRF consists of seven categories in which UNDP aims to achieve results. These seven categories are derived from the SHD focus areas, UNDP programming in special development situations, support to the United Nations system and the overall management of the organization. Each category has a corporately defined goal, sub-goals, and strategic areas of support;

(b) The goals are the ultimate aims of assistance that build on United Nations conferences and United Nations inter-agency agreements;

(c) The sub-goals are the specific aims of UNDP that indicate how UNDP contributes to the overall goal;

SAS are continuously updated in order to ensure that UNDP meets the demands of

(d) The strategic areas of support (SAS) pertain to the specific development areas where UNDP is active.

country needs within a changing global environment.



(e) The seven categories and their goals are:

i. Enabling environment for sustainable human development. Goal: To create an enabling environment for sustainable human development;

ii. Poverty eradication and sustainable livelihoods. Goal: To eradicate extreme poverty and reduce substantially overall poverty;

iii. Gender equality and the advancement of women. Goal: To achieve gender equality and advance the status of women, especially through their own empowerment;

iv. Environment and natural resources. Goal: To protect and regenerate the global environment and natural resource asset base for sustainable human development;

For Global Environment Facility, see UNDP-GEF Guidebook

v. Special development situations. Goal: To prevent or reduce the incidence and impact of complex emergencies and natural, environmental, technological and other human-induced disasters, and to accelerate the process of sustainable recovery;

www.undp.org/gef/guide/main.htm

vi. Support to the United Nations. Goal: Effective UNDP support to the United Nations global agenda for development;

vii. Management. Goal: To achieve excellence in the management of UNDP operations.

3. The results-oriented annual report (ROAR) summarizes progress

towards achieving the results set out in the SRF of each operating unit.

An operating unit is a country office, a regional bureau or a trust fund, such as Capacity 21.

4. The UNDP results framework also includes, at the corporate level, the following components:

At the country level the ROAR is referred to as the annual report

(a) The multi-year funding framework (MYFF): A four-year integrated resource plan approved by the Executive Board. It has two parts: a corporate SRF that aggregates all operating unit SRFs and an integrated resources framework;

See 7.5.1 for the procedures for annual reviews. See annex 7G for the structure and content of

(b) The multi-year funding framework report (MYFFR). An in- depth assessment of performance against planned results. The MYFFR is produced every four years.

the country office annual report.



1.4 Programming framework

1.4.1 The UNDP mission

1. The overarching objective of UNDP is the promotion of sustainable human development, an integrated, multidisciplinary approach to development, which places people at the centre of the development process and advocates the protection of life opportunities for present and future generations while respecting the natural systems upon which all life depends. This focuses development on enhancing people’s capabilities, of both the current and future generations, to lead the kind of lives that they find worthwhile.

The UNDP framework for SHD guides all stages of the programming process The priorities, goals and guiding principles that make up the framework have been incorporated into a reference tool that helps to appraise UNDP interventions in terms of SHD. This tool, entitled “Considerations for

2. In accordance with Executive Board decisions 94/14 and 98/1, UNDP has established a programming framework for all programme activities in line with their national development programmes and priorities. To do this, UNDP pursues three basic goals:

quality programming”, can be found in annex 2F.

(a) To strengthen international cooperation for SHD and serve as a major substantive resource on how to achieve it;

(b) To help the United Nations family to become a unified and powerful force for SHD;

(c) To focus UNDP’s own resources on making the maximum contribution in the countries served to certain key dimensions of SHD.

3. Within the context of these three basic goals, the SHD paradigm should be seen in the context of the integrated United Nations system approach to the follow-up to the global conferences of the 1990s. The conferences declared that development must be people-centred and sustainable. They have also established the eradication of poverty as the central priority. At the 1995 World Summit for Social Development, Heads of State and Government identified poverty eradication as an ethical, social, political and economic imperative of humankind.

In its decision 95/22 of 1995, the Executive Board determined that eradicating poverty should be the central priority of UNDP.

1.4.2 United Nations system collaboration

1. UNDP programming takes place within a United Nations system-wide approach on collaboration and follow-up to the global conferences. This approach is reflected in the UNDP approach to sustainable human development, which is delineated below.

See 1.4.3 on sustainable human development.



2. The Administrative Committee on Coordination (ACC) has set out a

common approach to be followed by organizations of the United Nations system for follow-up to the conferences. The five elements of the integrated approach, within the overall objective of poverty eradication, are :

Inter-agency task forces have been established for these elements. They have provided guidelines and other materials to support this approach. Contact DGO for more information.

(a) Enabling environment for economic and social development;

(b) Basic social services for all;

(c) Sustainable livelihoods and employment;

(d) Advancement of women;

(e) Sustainable management of the environment and resources.

3. The common country assessment (CCA) and the United Nations Development Assistance Framework (UNDAF) also address conference follow-up.

See 2.2 on the CCA and 2.3 on the UNDAF.

1.4.3 Key dimensions of sustainable human development

1. The following are the key dimensions of SHD:

(a) Empowerment. Freedom is at the heart of human development: enhancing people’s capabilities implies enlarging their freedom of action. Empowerment adds the concept that people should become active agents of change: able to take part in, or directly influence, the decision-making that vitally affects their lives;

(b) Equity. All people are equally entitled to develop their basic human capabilities. This is a matter of ensuring basic human rights. Everyone should have equal access to the social, economic and political opportunities vital to their development. Thus, any discrimination based on such factors as gender, class or ethnicity must be eliminated. The concern for equity has led UNDP to focus on the elimination of human poverty as a fundamental condition for an equitable society;

(c) Sustainability. In providing for the opportunities of the current

generation, however, resources should not be allocated in such a way that would compromise the capacity of future generations to achieve at least a similar level of human development. Thus, intergenerational equity is as important as intragenerational equity. This implies a major concern for the protection and regeneration of the natural environment, as well as for maintaining other assets on which society relies to sustain human development.



1.4.4 UNDP focus areas

1. Based on the above SHD dimensions, UNDP concentrates its assistance on the following focus areas:

See 1.4.5 to 1.4.8 for more information on the four focus areas.

(a) Promoting an enabling environment for sustainable human development;

(b) Poverty eradication and sustainable livelihoods;

(c) Gender equality and the advancement of women;

(d) Protection and regeneration of the environment.

2. Support to developing an enabling environment for SHD and capacity-building for good governance follows from the concerns for empowerment and participation. Employment and sustainable livelihoods are areas that are directly linked to poverty eradication. Priority assistance to both poverty eradication and gender equality follows from the importance attached to equity. The priority accorded to environmental protection and regeneration follows from the importance of sustainability. All focus areas contribute to the overriding objective to help end poverty and it is evident that there are multiple linkages between them beyond those indicated here.

3. In addition, many opportunities exist within the SHD framework to embark upon activities that can help to prevent or reduce the incidence and impact of complex emergencies and natural, environmental, technological, and other human-made disasters, and to promote sustainable recovery. The UNDP response to these special development situations is given in 1.4.9.

1.4.5 Promoting an enabling environment for sustainable human

development

1. The series of United Nations conferences in the 1990s reflect an increasing concern and consensus for people-centred development and a recognition of the centrality of participatory processes, human rights, democratization and good governance as well as the fundamental importance of the international economic environment to the pursuit of SHD. UNDP supports reforms in the enabling environment, namely, the set of social, economic and political opportunities that enables people to enhance their human capabilities.

See Building partnerships for SHD – UNDP and civil society organizations; 1997 policy document on governance; 1998 policy document on human rights; 1999 policy document on capacity development [forthcoming]. These and other papers on governance can be



2. The emerging paradigm of people-centred governance was most

clearly and comprehensively reflected in the commitments and Programme of Action of the World Summit for Social Development in Copenhagen in 1995. Governance comprises the complex mechanisms, processes and institutions through which the state, civil society and the private sector articulate their interests, mediate their differences, exercise their legal rights and obligations and agree effectively and equitably on the best use of resources.

accessed at http://magnet.undp.org.

3. UNDP supports policy-making – such as national development strategies and macroeconomic policies – that promotes sustainable human development. In this context it provides support to National Human Development Reports, national efforts to monitor human development and poverty, and campaigns against such epidemics as HIV/AIDS that threaten to undermine advances in human development. An important modality for policy-making is consensus building initiatives such as National Long Term Perspective Studies (NLTPS) or national conferences designed to engage a broad array of actors from the state, private sector and civil society in setting long term development priorities.

See annex 2A on consultative processes and documents for a brief explanation of NLTPS.

4. With the principal motivation to enable developing countries – and

particularly poor people within them – to avoid the risks and access the potential benefits of increased globalization and liberalization of the world economy, efforts also aim at promoting an enabling international environment. This encompasses support for international resource mobilization, aid coordination and debt-relief mechanisms.

Examples include round tables and the 20/20 initiative.

5. UNDP looks upon good governance as the enhancement of national institutional capacities for sound policy-making and implementation, the provision of effective and efficient public services and the transparent and accountable management of the affairs of the State, the economy and the society. This includes the promotion of the rule of law and human rights, the maintenance of peace, security and political stability and the establishment of legal and policy frameworks within which people can pursue their aspirations and lives with optimal freedom and responsibility for the well-being of all.

6. UNDP supports democratization processes and promotes decentralization to develop capacity for shared governance responsibility at central, regional, local, urban and community levels. In public sector management, UNDP promotes efficient civil service systems, transparent and accountable financial systems, and effective institutional frameworks for the management of domestic and external resources for SHD. UNDP also plays a key brokering role in facilitating the dialogue between government and the private sector and civil society and supports reconciliation and consensus- building efforts in countries experiencing or emerging from conflict or complex emergency situations.



1.4.6 Poverty eradication and sustainable livelihoods

For a good overview of UNDP’s work in the area of poverty eradication at

1. UNDP promotes an understanding of poverty that goes beyond the lack of income. The Human Development Report 1997 introduced the concept of human poverty that focuses on the denial of opportunities and choices most basic to human development, namely to lead a long, healthy, creative life and to enjoy a decent standard of living, freedom, dignity, self-esteem and the respect of others. This understanding of poverty sees it as a process, not as a condition. And it sees the poorest people not as passive victims but as leading actors struggling against a process of impoverishment. Rather than focusing on poor people’s weaknesses, the concept of human poverty focuses on their potential strengths and on the assets they need in order to move out of poverty.

the country level, see UNDP Poverty Report 1998: Overcoming Human Poverty. The Technical Support Documents I-IV: Poverty Measurement, Monitoring and Policies is a comprehensive set of documents that guide country offices in the planning, implementation and assessment of their anti-poverty efforts.

2. Effective action against poverty requires convergence between: Gender and Poverty is a

paper that outlines the

(a) macroeconomic policy, especially with regard to the character and content of growth;

different ways men and women are affected by poverty and vulnerability. Global

(b) institutional change, especially to promote poor people's access to and control over assets, such a land;

programme on sustainable livelihoods illustrates how sustainable livelihood

(c) micro-level interventions that promote self-empowerment and improve livelihoods.

has been applied globally and the policy and programme priorities for

3. UNDP has drawn on the support given by the international community for the concept of sustainable livelihoods (Rio 1992, Copenhagen 1995), making it an integral part of its poverty eradication mandate. Traditionally, assets are identified with physical infrastructure and financial capital; assets in the human poverty context also include personal, social, economic, political and natural/biological resources. UNDP defines sustainable livelihoods as the activities, assets and entitlements by which people make a living.

1999-2001.Sustainable livelihoods concept paper is a useful overview of how UNDP can utilize livelihood approach to poverty reduction. Sustainable Livelihoods: Concepts, principles and approaches to indicator development is a discussion paper on how sustainable livelihood indicators can be

4. At the upstream level, the focus of UNDP efforts is on developing the capacities of government partners to design and integrate anti-poverty strategies into national macroeconomic plans. In addition, monitoring and evaluation systems, especially indicators, need to be re-oriented and greater emphasis placed on human poverty measures. UNDP supports policy research that looks at the effects of sectoral policies on the livelihoods of poor men and women and how such policies can be improved. Downstream, UNDP programmes aim to strengthen the asset base and livelihoods of the poor. Such programmes should be informed by activities being pursued at the national level so that programme interventions are

developed. Sustainable livelihood primer is a set of strategies/guidelines for the design, implementation, monitoring and evaluation of sustainable livelihood programmes based on lessons learned from pilot sustainable livelihood countries.



linked to policy reform. Documenting the lessons learned and

instructive experiences of both upstream and downstream activities must be an integral part of programme monitoring and evaluation.

5. Civil society organizations (CSOs), particularly intermediary NGOs,

have often pioneered and played a catalytic role in transforming a growth-oriented agenda towards a sustainable and people-centred agenda. A vibrant civil society is a critical precondition for a more equitable, pluralistic and humane society, one that preserves and safeguards people’s rights. Therefore, it is necessary to develop the capacities of CSOs to advocate for pro-poor policies at all levels and promote alliances among state, market and civil society actors for poverty eradication. A focus on human poverty also recognizes the critical effects of gender inequality, which perpetuates poverty both within and across generations.

See UNDP and Organizations of Civil Society: A programme framework (provides theoretical underpinnings and guidance on issues of engagement); Empowering People: A guide to participation; and the web site http://www.undp.org/csopp

1.4.7 Gender equality and the advancement of women

1. Gender equality and the advancement of women are intrinsic dimensions of equitable and sustainable human development. UNDP promotes gender equality of capacities and opportunities in order to make a difference in poverty eradication and sustainable livelihoods, environmental regeneration and governance.

See the 1995 and 1996 Human Development Reports. See the Administrator's "Direct Line 11" on gender equality (identifies organizational

2. All governments made commitments to the advancement of women and gender equality goals in the Beijing Platform for Action (1995), that reinforced and amplified the world community's emphasis on the eradication of poverty. In fact, the elimination of the feminization of poverty is the first strategic objective of the Beijing Platform for Action. In addition, the United Nations conferences have increased in understanding of gender concerns within a broad development framework.

priorities and budget allocations); Guidance note on gender- mainstreaming (provides guidelines for programming); Gender balance in management policy (addresses staff recruitment, retention and promotions policy).

3. UNDP gender-mainstreaming strategy emphasizes the systematic

integration of gender equality objectives into organizational policies, programmes at all levels, resource allocations and organizational systems and practices. It is a methodology to ensure that women and men participate equally in the development process as agents and beneficiaries. It supports the development of approaches and methods for improved capacity-building, information systems, and networking on gender equality issues at the country level, including the implementation of the Beijing Platform and commitments made under the convention on the Elimination of all Forms of Discrimination Against Women (CEDAW).

For more information on CEDAW, see the Programming Manual Reference Centre on the UNDP Intranet.



4. Specific areas of activity include support to gender analysis in the

preparation of national human development reports, support to women’s roles in and contributions to decision-making, including in crisis prevention and reconstruction, support women’s equal access to and control over economic and social assets and resources, support to actions to strengthen women’s enjoyment of human rights, especially security and freedom from violence, support to the development of gender indicators and statistics, strengthening the capacity of governments and civil society organizations to take account of gender considerations in their work, and improving networking, advocacy and public awareness around gender and the advancement of women.

1.4.8 Protection and regeneration of the environment

For GEF, see UNDP-GEF Guidebook

1. Environment refers both to natural resources and ecological conditions that affect and can support development, such as air, water, land, forests, energy, waste and pollution. The objective of UNDP is to ensure that programmes are environmentally sustainable and that natural resource conditions affected by these programmes do not limit future national and international development options. This is an essential prerequisite to poverty eradication and sustainable human development (SHD).

[www.undp.org/gef/guide/main.htm] See UNDP Handbook and Guidelines for Environmental Management and Sustainable Development (basic approach to environmental assessment of all UNDP-

2. The sustainable use of natural resources and environmental protection and regeneration is one of UNDP’s four basic areas of development services to address poverty. While programmes may focus on environmental objectives in order to reach SHD goals, all development programmes are likely to have environmental impacts and opportunities. It is, thus, essential to consider these in the identification, design, assessment, implementation, monitoring and evaluation of all programmes and projects. This is an integral part of programme development and should occur as part of the stakeholder consultation process.

supported programmes and projects);Sector strategies for food security, forest management, water, energy and atmosphere (specific guidance for programming); Framework for measuring UNDP results in environment and natural resources; SEED Guidebook (provides topic-specific summary information).

3. UNDP draws its focus from Agenda 21, the internationally agreed upon plan of action for sustainable development concluded at the 1992 United Nations Conference on Environment and Development (UNCED). Agenda 21 treats environment and natural resources as integrally linked to the quality of people’s lives and as key elements in any strategy to reduce poverty.



4. UNDP provides support for the design and operationalization of national sustainable development frameworks building on the objectives of Agenda 21. Considering their particular relevance for reducing poverty, UNDP places emphasis on access by the poor to modern energy services built upon energy efficiency, renewable resources and new technologies, support for food security and sustainable agricultural practices, drought preparedness and dryland management, sustainable forest management and integrated management of freshwater resources and aquatic ecosystems. UNDP promotes private-public partnerships for the urban environment and strengthens synergies with efforts on mitigating climate change, conservation of biodiversity and international waters protection under the Global Environment Facility (GEF) and the phasing out of ozone- depleting substances through the Montreal Protocol.

1.4.9 Special development situations

1. UNDP works with other development partners to secure the foundations for SHD in a number of areas that combine relief and development. These areas include the demobilization of former combatants, comprehensive mine action, the sustainable return and reintegration of refugees and internally displaced persons, and the restoration of governance institutions to support the rule of law and build a just and democratic society.

2. Furthermore, through the process of United Nations reform, UNDP has absorbed the functions of natural disaster prevention, preparedness and mitigation, transferred from the Emergency Relief Coordinator. In accordance with General Assembly resolution 52/12B, these absorbed functions are funded with resources from the United Nations regular budget, separate from and additional to UNDP regular resources.

The Emergency Response Division of UNDP was established in 1995 to facilitate quick and efficient responses in emergency situations.

3. The programming arrangements adopted by the Executive Board in

its decision 95/23 allocated five per cent of UNDP regular resources to target for resource assignment from the core line 1.1.3 (TRAC-3) for countries facing special development situations. TRAC-3 resources are allocated to these countries in addition to other resources to which they are eligible.

See 3.1, table 3.1 for the UNDP financial framework, and 3.4 on the use of TRAC-3 resources.



4. Special development situations are those considered by UNDP to

require major interventions to sustain or restore the coping capacities of countries under acute stress, where significant development gains have been lost or seriously compromised by a complex set of factors. These situations include but are not limited to complex emergencies, where close coordination is required between the political and peace- keeping or peace-building activities of the United Nations, humanitarian and human rights assistance activities, and operational activities for development. They also include support to low-income and least developed countries faced with recovery activities in the wake of major natural, environmental, technological or human-made disasters.

The term “complex emergency” is relatively new and still evolving. It is most commonly used to describe an emergency in which armed conflict, either international or internal (or both), is a primary cause of the emergency. This distinguishes complex emergencies from other types, such as natural disasters or technological disasters.

5. From a strategic perspective, UNDP responds to those special

development situations where the needs for special and integrated support are most acute, and where UNDP can make a difference with special programmes that support holistic coordination across the development, humanitarian, and political domains of United Nations system assistance. These factors reflect the kinds of alliances that must be entertained and the complexity of the strategic leadership and management challenges that must be faced by UNDP, both as manager of the resident coordinator system, and from a special development perspective.

For more information on UNDP responses to special development situations see the ERD Intranet site at http://intra.undp.org/erd


Chapter 2: COUNTRY COOPERATION Page 1

Contents Page 2.0 COUNTRY COOPERATION 2.1 Outline of country cooperation 2.1.1 Introduction 2.1.2 Elements of country cooperation 2.1.3 Responsibilities 2.2 The common country assessment 2.2.1 Introduction 2.2.2 Policy 2.2.3 Purpose 2.2.4 Duration 2.2.5 The role of UNDP in the CCA 2.2.6 Preparation process 2.2.7 Resources for preparing the CCA 2.2.8 Follow-up within UNDP 2.3 The United Nations Development Assistance Framework 2.3.1 Introduction 2.3.2 Policy 2.3.3 Purpose 2.3.4 Duration 2.3.5 The role of UNDP in the UNDAF 2.3.6 Preparation process 2.3.7 Resources for preparing the UNDAF 2.3.8 Follow-up within UNDP 2.4 The country cooperation framework 2.4.1 Introduction 2.4.2 Policy 2.4.3 Purpose 2.4.4 Duration 2.4.5 Preparation process 2.4.6 Resources for preparing the CCF 2.4.7 Appraisal and approval 2.4.8 Contents of the CCF 2.4.9 Changes to the CCF



2.5 Review committees 2.5.1 Purpose 2.5.2 Local Programme Advisory Committee 2.5.3 Regional Bureau Programme Advisory Committee 2.5.4 Programme Management Oversight Committee Annexes 2A Consultative processes and reference documents 2B Country cooperation 2C Illustration of steps in preparing and approving the CCF and

releasing TRAC resources

2D Sample table of contents for country cooperation frameworks 2E CCF resource mobilization target table 2F Considerations for quality programming 2G Format for a CCF extension



2.0

COUNTRY COOPERATION

2.1 Outline of country cooperation

2.1.1 Introduction

1. The policies and procedures for country programming have been prepared in accordance with:

See 1.2 on the legislative framework.

(a) The commitment of the United Nations system to achieve greater coherence and impact at the country level;

See General Assembly resolutions 47/199, 50/120 and 53/192 on

(b) The UNDP commitment to ensure that its resources are used in a focused, results-oriented manner, with poverty eradication as the overriding priority.

United Nations collaboration. See Executive Board decisions 95/23, 98/1

2. The United Nations operational activities for development at the country level constitute the United Nations response to national development needs and priorities. These needs and priorities are set out, for example, in national development plans and other statements of national policy.

and 99/1on UNDP programming.

2.1.2 Elements of country cooperation

1. Country cooperation consists of a variety of activities, as described briefly below:

For a graphic representation of the stages, see annex 2B.

(a) Learning from past and current activities. In the context of United Nations cooperation, learning is achieved in various ways, notably through evaluations of programmes and projects, reviews of United Nations Development Assistance Frameworks (UNDAFs) and UNDP reviews, audits and evaluations. A vital part of the learning is the process of preparing the common country assessment (CCA), in which the United Nations system reaches a common analysis and understanding of key development problems;

See 2.3 for more information on the UNDAF. See 2.2 on the CCA. This should take account of the lessons identified through learning.



(b) Identifying new objectives for cooperation. Following the completion of a CCA exercise, the United Nations system collaborates with the national authorities and other key partners to determine how the United Nations system can best contribute to the country’s development. Thus, the parties aim to determine the most coherent and results-oriented way of responding to national needs and priorities, taking into account the activities of other development partners. The UNDAF as a strategic framework for the country-level activities of the entire United Nations system, is a key part of this process. Within this framework, UNDP programme activities are established more specifically in the country cooperation framework (CCF). The CCF is prepared by the government, in collaboration with UNDP;

See 2.4 for information on how to prepare a CCF. See 3.0 for information on how resources are allocated.

(c) Carrying out activities in order to achieve agreed objectives. The CCF sets out the key results that the government expects to achieve with UNDP support. It indicates the strategies through which the results will be achieved, and how they will be assessed, in terms of both processes and indicators. Once a CCF is approved, resources are assigned, and individual programmes and projects are formulated. Specific, measurable results are identified at this stage; they are incorporated in programme support documents (PSDs) and project documents.

See 4.0 on how to formulate programmes and projects. See 5.1.1 and 5.1.2 on how to complete PSDs and project documents. See also 1.4.1 on the strategic results frameworks (SRFs).

2.1.3 Responsibilities

1. The resident coordinator of the operational activities for development of the United Nations system takes the lead in ensuring that the United Nations system provides a harmonized and coherent response to the development challenges of the country in accordance with the mandates of each United Nations organization. In particular, the United Nations resident coordinator leads the United Nations country team in preparing the CCA and the UNDAF.

The UNDP resident representative is usually the United Nations resident coordinator. See 9.0.

2. The United Nations country team determines the appropriate mechanisms for undertaking the CCA assessment and analysis. Often, these mechanisms consist of thematic groups composed of a wide range of development partners. The members of these groups jointly review the development situation with regard to both national priorities and progress towards conference and convention commitments within the theme of their group.

Examples of themes are poverty eradication and gender equality.

3. With respect to UNDP programming, the UNDP resident representative is responsible for collaborating with the government and other development partners with a view to ensuring the timely preparation of the CCF.

See annex 2C for a suggested time-line for this process.



2.2 The common country assessment

2.2.1 Introduction

1. The full policies and procedures governing the CCA are set out in separate CCA guidelines for the United Nations system. The present section outlines the essential elements of the CCA and how it is used within the UNDP programming process.

See the Guidelines for Common Country Assessment, issued by UNDG, in the Programming Manual Reference Centre on the UNDP Intranet.

2.2.2 Policy

1. UNDP recognizes the CCA as a key responsibility of the United Nations system, under the leadership of the resident coordinator, in collaboration with key partners. The government is closely involved in the CCA process.

The United Nations country team ensures the day-to-day management of the CCA process.

2. For UNDP, the CCA is an integral part of the development cooperation cycle at the country level.

2.2.3

Purpose

1. The overall aim of the CCA is to achieve deeper knowledge of key development challenges among the partners involved in the CCA, based on a common analysis and understanding of the development situation of a country.

2. The CCA provides the situational analysis from which the UNDAF and the subsequent country programmes of individual organizations of the United Nations system are derived.

The situation analysis was previously provided by the preparation of a UNDP advisory note, which has been abolished.

2.2.4 Duration

1. The CCA promotes the establishment of a system for continuously assessing development trends and reviewing the situation of the country. As such, it does not have a specific duration. The CCA document is updated in response to local conditions. Its revision is normally triggered by the formulation of the UNDAF, joint mid-term reviews or by the preparation of country programmes.

2.2.5 The role of UNDP in the CCA

1. The UNDP country office participates in the CCA process by:

(a) Ensuring broad participation and consultations in accordance with UNDP principles, including the promotion of partnerships with national stakeholders and representatives of the donor community;



(b) Supporting the resident coordinator in his/her management and

coordination of the preparation process, including support to ensure the sustainability of the information base and the full and active participation of organizations of the United Nations system, such as the specialized agencies and regional commissions;

In particular, UNDP is concerned with WSSD,

(c) Providing leadership and technical inputs on follow-up to the global conferences of particular interest to UNDP;

UNCED, FWCW, Habitat II. See 9.1.4 for a list of

(d) Ensuring the active participation of staff members and programme and project staff in thematic groups conducting assessment and analysis;

global conferences.

(e) Providing technical inputs on contextual indicators in such areas as economic and social development;

UNDP may, for example, contribute through the global and national human development

(f) Strengthening national capacity in data collection and analysis in order to enhance the quality of the CCA;

reports.

(g) Providing additional indicators for results measurement for the CCA indicator framework in order to ensure effective coverage of UNDP strategic areas of support.

2.2.6 Preparation process

1. Phase 1: Preparation. The United Nations country team consults with partners to decide on the objectives of the CCA, as well as which entity should be involved and the role of each partner. The CCA process should involve full government participation. The actual level and extent of participation will be determined by local circumstances.

The CCA terms of reference should be prepared locally.

2. Phase 2: Assembly of data and information. The United Nations country team and other partners arrange the compilation of information, including quantitative and qualitative data, and establishes a common information base; UNDP must ensure that composite indices are used for the CCA, in particular the human development index (HDI).

UNDP ensures that appropriate attention is paid to cross-cutting development problems such as poverty, governance, gender equality, environmental sustainability and capacity-building.

3. Phase 3: Assessment and analysis. The thematic groups review the information and identify the main problem areas and priority issues.



4. Phase 4: Drafting the CCA document. The CCA document contains:

The format for the CCA is decided at the country level.

(a) An assessment and analysis of key development problems and trends, including those addressed by the global conferences and conventions;

The partners should add indicators as required at the country level.

(b) A set of key issues that provide a focus for advocacy and a basis for preparing the UNDAF;

The CCA is used for, inter alia, the UNDAF, baseline data, country

(c) Situational indicators as outlined in the CCA indicator framework.

programming and dialogue on the findings of the CCA process.

5. Phase 5: Follow-up activities. These include extracting lessons learned to improve the CCA process, monitoring of the development situation using the CCA indicators, use and application of the CCA, updating the CCA and maintaining the information base.

2.2.7 Resources for preparing the CCA

1. Funding for the preparation of the CCA is provided by the participating organizations of the United Nations system. UNDP may provide resources from line 2.2, Support for policy and programme development and line 3.1, Support to the resident coordinator and development support services (DSS).

See 3.5, 3.8 and 9.0, respectively, for information on SPPD, SRC and DSS resources.

2.2.8 Follow-up within UNDP

1. The UNDP resident representative sends the final CCA to the regional bureau. In so doing, the resident representative highlights the programme implications for UNDP. The regional bureau provides substantive feedback to the resident representative, focusing on issues to be addressed when the UNDAF and CCF are being formulated. In so doing, the regional bureau normally shares the CCA with concerned headquarters units and obtains their inputs.

The bureau may want to use a programme advisory committee to generate these comments. See 2.5.3 on the Bureau Programme Advisory Committee.

2.3 United Nations Development Assistance Framework

2.3.1 Introduction

See the Guidelines for

1. The full policies and procedures governing the UNDAF are set out in separate UNDAF guidelines for the United Nations system. The present section outlines the essential elements of the UNDAF and how it is used within the UNDP programming process.

the United Nations Development Assistance Framework, issued by the UNDG, in the Programming Manual Reference Centre on the UNDP Intranet.



2.3.2 Policy

1. The UNDAF serves as the planning framework for the country programmes and projects of participating United Nations system organizations.

For harmonization of cycles, see 2.4.4.

2. The CCA is an essential first step for the preparation of the UNDAF. The UNDAF is based, inter alia, on the findings of and key issues identified in the CCA.

For information on the role of the CCA and the UNDAF within UNDP country cooperation see 2.1.

3. The preparation of the UNDAF is the responsibility of the resident coordinator system (RCS), led by the United Nations resident coordinator at the country level, working in partnership with the government. The resident coordinator seeks the participation of all members of the resident coordinator system in the formulation process.

See 9.0 on the role of the resident coordinator.

4. The UNDAF requires “…full Government participation…and its full ownership through the agreement of the recipient Governments concerned to the finalized Framework…” (part I.C., para. 18).

See General Assembly resolution 53/192 of 15 December 1998.

5. All United Nations funds, programmes and specialized agencies are expected to participate fully and actively in the UNDAF. The involvement of other United Nations entities, whether or not they have country-level representation, is encouraged.

6. The World Bank, the International Monetary Fund and regional development banks are invited to participate in the UNDAF.

7. The involvement of humanitarian and other entities in the UNDAF should be facilitated during recovery from complex emergencies.

8. Close consultations are held with civil society, the private sector and the donor community during the preparatory process. This process should satisfy the consultation criteria normally used by UNDP for programming.

See annex 2F on quality programming.

2.3.3

Purpose

1. The UNDAF aims to achieve:

Through these objectives, the UNDAF

(a) Improved focus and results orientation, identifying where the United Nations system can make the most difference, using its unique strengths as a development partner;

should achieve greater impact of United Nations system cooperation on the development and well-being of people.



(b) Stronger unity of purpose and team spirit within the United Nations system;

See the note on definitions of processes and products for enhancing UNDG

(c) Increased collaboration through a mix of agency, parallel and joint programming;

programme collaboration issued by UNDG.

(d) Better integration of the normative and operational aspects of development cooperation;

(e) Increased dialogue and stronger partnerships and alliances with other members of the development community;

(f) More efficient use of limited resources, based on improved division of labour, rationalization of resource allocation and streamlining of procedures;

(g) Improved opportunities for securing increased resources for national needs and priorities.

2.3.4 Duration

1. The UNDAF has the same duration as the harmonized programme cycles of participating organizations and is synchronized, whenever possible, with the national development planning cycle.

2.3.5 The role of UNDP in the UNDAF

1. The UNDP country office participates in the UNDAF process by:

(a) Supporting the resident coordinator in his/her management and coordination of the preparation process;

(b) Ensuring the full and active participation of United Nations system organizations, such as the specialized agencies and regional commissions;

(c) Ensuring the active participation of staff members in thematic groups and other bodies that are established to prepare the UNDAF;

(d) Providing leadership in securing stronger United Nations system support for achieving results in sustainable human development (SHD) through coordinated follow-up to United Nations conferences, conventions and declarations, regional initiatives and system-wide agreements;



(e) Providing all necessary assistance to ensure that the UNDAF articulates the results expected from United Nations system assistance;

The focus is especially on poverty eradication.

(f) Encouraging increased collaboration, harmonization and streamlining of procedures for operational activities within the United Nations system through follow-up of opportunities for joint and parallel programming;

An example of a system-wide agreement is the Administrative Committee on Coordination agreement on “Freedom from Poverty: Actions and

(g) Supporting use of the programme approach and national execution as preferred modalities of United Nations system cooperation at country level;

Partnerships”.

(h) Seeking broad-based consultations with national stakeholders and local donors on the basis of activities already being undertaken or planned by UNDP in support of aid coordination by the government;

(i) Using contacts with the World Bank, International Monetary Fund and other international financial institutions to promote their participation in the preparatory process.


1. Preparation of the UNDAF normally takes place in countries that have: (a) completed a CCA, and (b) harmonized the programme cycles of all funds and programmes.

Other countries may only proceed after consultations with the UNDG. Contact DGO.

2. The preparatory process will start with agreement on key issues, in particular the CCA findings relating to national needs and priorities and their implications for the strategic focus of future cooperation between the United Nations system and the programme country.

3. Under the leadership of the resident coordinator, the participating organizations agree on roles and responsibilities for the preparation of the UNDAF, including external support needs, tentative terms of reference and expected outputs of any committees or teams that will draft the UNDAF document.

4. Consultations with a broad range of development partners are to be held as part of preparing the UNDAF. The resident coordinator may need to seek early agreement with the Government on the purpose, scope and frequency of such consultations.



5. The UNDAF document contains the following sections:

(a) Rationale. A brief explanation why the choices made in the UNDAF are likely to have an impact;

(b) Goals and objectives. A statement on the focus and expected results of United Nations assistance, identified using the principles of the programme approach;

The UNDAF is implemented mainly through the country programmes and projects.

(c) Cooperation strategies. Description of how the United Nations system proposes to achieve the objectives of the UNDAF;

(d) Follow-up and review. How the provisions of the UNDAF will be implemented, monitored, reviewed and evaluated;

(e) Programme resources framework.

6. The headquarters of participating organizations of the United Nations system will comment on the draft UNDAF. Government agreement to the finalized UNDAF is required to ensure full national ownership of the process. The details of how this agreement is secured are determined at the country level.

2.3.7 Resources for preparing the UNDAF

1. Funding for the preparation of the UNDAF is provided by the participating organizations of the United Nations system. UNDP may provide resources from line 2.2 for SPPD, line 3.1 for SRC and DSS.

See 3.5, 3.8 and 9.0 respectively for information on SPPD, DSS and SRC resources.

2.3.8 Follow-up within UNDP

1. The UNDP resident representative sends the draft UNDAF to the regional bureau. In so doing, the resident representative highlights the programme implications for UNDP.

Simultaneously, the resident coordinator sends the draft UNDAF to the UNDG for comments. The bureau may want to

2. The regional bureau provides substantive feedback to the resident representative, focusing on issues to be addressed when the CCF is being formulated. The bureau should obtain the input from other concerned headquarters units.

use a bureau programme advisory committee (BPAC) to generate these comments. See 2.5.3 on bureau programme advisory committee.

3. The UNDP resident representative sends the final UNDAF to the regional bureau. The bureau keeps it on file for reference during the CCF process.

The resident coordinator submits the final UNDAF to UNDG (through DGO) and headquarters of organizations of the United Nations system.



2.4 The country cooperation framework

2.4.1 Introduction

1. Within the framework established by the UNDAF, the government collaborates with UNDP in preparing the CCF. The CCF, including its annexes, should define the expected results in strategic areas of support. It is based on national plans and priorities, country-specific circumstances, lessons learned from previous cooperation, and the goals, sub-goals and strategic areas of support of UNDP.

See 2.1.2 on the key elements in country cooperation. See 1.0 for an outline of UNDP goals, sub-goals and strategic areas of support.

2. The resources that UNDP applies towards the implementation of CCFs are described in chapter 3. Among these resources, the regular resources are of crucial importance, primarily target for resource assignment from the core (TRAC) lines 1.1.1 and 1.1.2 (referred to as TRAC 1 and TRAC 2). Resource mobilization is also a key tool for providing additional resources to the CCF.

See 3.1, table 3.1 for the UNDP financial framework, and 3.3 for procedures on TRAC resource assignment.

3. The Executive Board approves all CCFs on a no-objection basis. TRAC 1 resources are formally assigned upon approval of the CCF. TRAC 2 resources are formally assigned following a closer review of programme quality and expected results.

See annex 2F on considerations for quality programming.

2.4.2 Policy

1. All programme countries, including the net contributor countries (NCCs) are required to prepare a CCF for approval by the UNDP Executive Board. When circumstances prevent the preparation or approval of a CCF, the Executive Board may authorize the Administrator to approve projects on a case-by-case basis.

See the list of NCCs in the Programming Manual Reference Centre on the UNDP Intranet. Such circumstances are normally a crisis situation.

2. The programme country government has the primary responsibility for the formulation of the CCF in consultation with UNDP. The UNDP country office should assist the Government in ensuring results orientation in the CCF and provide the Government with the support needed to complete the CCF in a timely manner.

See 2.3.8 on follow -up to the UNDAF within

3. The CCF should be consistent with the content of the UNDAF.

UNDP. See 1.4 for the

4. The process and content of the CCF must be consistent with the UNDP programming framework. The resident representative must ensure that programming documents are reviewed for quality.

programming framework and annex 2F, which reflects the UNDP mandate and the eight guiding principles for an

5. The CCF must be the result of a participatory process to identify the most effective use of UNDP resources for achieving results, involving a wide range of development partners, including civil society groups, United Nations agencies, donors and other development partners.

SHD focus.



2.4.3 Purpose

1. The CCF is the programming instrument in which a government and UNDP set out their planned cooperation over a multi-year period. The CCF outlines the areas where UNDP will concentrate its activities, based on its comparative advantages. The CCF is designed in such a way as to encourage results-based management of UNDP resources and to permit the results to be achieved, monitored and evaluated.

See annex 2F for a list of considerations for quality programming.

2. The resident representative is responsible for ensuring that the CCF:

(a) focuses on those substantive policy areas where UNDP’s support would most strategically impact the lives of the poor; and on the issues (in UNDP’s mandated areas) which need to be seen as problems rather than as accepted everyday conditions;

(b) supports key national policy-shaping actors in putting the problems on the national policy agenda, and subsequently moving them on the decision agenda;

(c) incorporates actions to strengthen such process, and improve on them, to ensure the best policy outcomes for the poorest and most vulnerable.

2.4.4 Duration

1. In consultation with government, the UNDP country office must schedule the CCF process in a timely manner so that a new CCF is approved before the current CCF expires. The regional bureau must support the country office in managing the process of submitting the CCF to the Executive Board for approval. The following conditions apply to the duration of the CCF:

For timely approval, the UNDP country office in consultation with partners should prepare a timeline for preparation, review and approval. See annex 2C.

(a) The duration of the CCF must be harmonized with those of other United Nations funds and programmes at the local level;

This duration should also be the same as that of the UNDAF.

(b) If circumstances arise that call for a change in the duration, all parties at the country level must consult to agree on such a change. Such a change must be approved by the Executive Committee of the United Nations Development Group before submission to the Board.

See the joint letter from UNDG of 28 October 1998 in the Programming Manual Reference Centre on the UNDP Intranet.


1. The resident representative and the government plan for the timely formulation and appraisal of the CCF through a participatory process. In accordance with the policies is section 2.4.2, the participation



must include civil society groups, United Nations agencies, multilateral and bilateral donors, and other development partners.

1. At the outset, the resident representative reviews key documents with the government, including the UNDAF and the CCA, as well as the country strategy note (CSN) if one exists. Other documents that may be drawn upon include national long-term perspective studies (NLTPS), national technical cooperation assessments and programmes (NATCAPs), national human development reports (NHDRs) and other types of assessments such as poverty assessments.

See annex 2A for a summary of these documents.

3. The resident representative also communicates the concerns of UNDP headquarters to the government, as indicated by the substantive feedback by regional bureau in conjunction with the UNDAF. The country office should also seek technical inputs from the specialized agencies during the formulation stage of the CCF.

Country offices are advised to consult with relevant units at headquarters during formulation to facilitate and expedite the appraisal process. See 2.3.8 on UNDP follow -up

4. Based on the UNDAF process, the government and UNDP pursue dialogue among the development partners with a view to defining further the elements of the CCF, especially the objectives, the programme areas and the expected results from UNDP support.

to the UNDAF.

5. At the same time, the country office prepares the request for TRAC-2 resources, as described in section 3.3.2.

See 3.2 for how to obtain TRAC resources.

6. The draft CCF follows the format described in section 2.4.8, and is finalized after appraisal and review to ensure its quality and results orientation.

See 2.4.7 for information on CCF appraisal and approval.

2.4.6 Resources for preparing the CCF

1. Resources for preparing a CCF are provided by the government. Where required for additional studies or workshops, UNDP may provide TRAC resources or DSS funds or SPPD funds.

See 3.3 and 3.8, respectively, for information on TRAC and DSS. See 3.5 on SPPD resources, which are used in agreement

2.4.7 Appraisal and approval

with the specialized agencies.

1. The director of the regional bureau is accountable for the submission of a high-quality CCF for Operations Group (OG) review and Executive Board approval. The country office and the regional bureau are jointly responsible for determining an appropriate formulation and appraisal process, which would normally include the following:

See the Administrator’s e-mail message dated 16 October 2000 for further information on the Operations Group in the Programming Manual Reference Centre.

(a) On behalf of headquarters concerned units of UNDP, the regional bureau provides substantive feedback to the resident representative at the time of UNDAF approval. The bureau should at that time also indicate how it intends to participate in the CCF formulation since timely contributions from headquarters are

See 2.3.8 on UNDAF follow -up.



formulation since timely contributions from headquarters are indispensable to minimize the need for detailed review at a late stage in the process;

See annex 2F for a list of considerations for quality programming, used as a tool during the appraisal process.

(b) The regional bureau reviews the draft CCF to verify, inter alia, that it reflects the UNDP programming framework;

(c) A local PAC must review the CCF draft in order to advise the resident representative. In particular, the LPAC reviews the consistency of the CCF with the UNDAF, ensures a results focus, and verifies that corporate concerns communicated by UNDP headquarters are addressed. The LPAC is jointly chaired by the government co-ordinating authority and UNDP and must be attended by representatives of other United Nations funds, programmes and agencies. In order to minimize the need for detailed review of CCFs by the Executive Board, it is important that local representatives of the Executive Board be invited to the LPAC meeting. Other development partners, including representatives of civil society, are also invited;

See 2.5.2 for the role of the LPAC. Where appropriate, the regional bureau may attend the LPAC, bringing comments from relevant headquarters units.

(d) The regional bureau ensures that the advice of the LPAC and other comments are taken into consideration in the final draft and arranges for the financial data to be cleared by the Division for Resources Planning and Coordination before forwarding the CCF for review by OG.

The OG will normally use its Working Group to review the CCF. See 2.5.4 on the OG.

2. In its review of the CCF, Programme Working Group (PWG) examines the relationship between results defined in the CCF and the relevant UNDP goals and sub-goals and regional trends, including the different needs of the regions and lessons learned on a corporate scale. PWG also identifies oversight and support issues and ensures consistent quality for documents submitted to the Executive Board. PWG may decide to forward the CCF to the Executive Board for approval at this point or request further improvement.

The time-frame for CCF preparation may not allow for additional negotiations; in this case a note by the Administrator would be needed.

3. In the event that UNDP and the government are unable to reach full agreement on the CCF content, the areas of disagreement will be brought to the attention of the Executive Board in a note by the Administrator. The regional bureau prepares the note.

4. At the Executive Board, the CCF is approved as submitted without presentation or discussion, unless at least five members have informed the Secretariat in writing before the meeting of their wish to bring a particular CCF before the Executive Board.

See Executive Board decision 96/7.

2.4.8 Contents of the CCF

1. All CCFs will be prepared using the format given in box 2.1 below. The CCF submitted for Executive Board approval may not exceed 10 pages, including its cover page and its annexes. Courier 10 cpi font must be used with one-inch/2.5 cm margins.



Box 2.1: The CCF format

Cover Page (see annex 2D for sample) 1 page

Chapters Paragraphs

Page

I: DEVELOPMENT SITUATION FROM A SUSTAINABLE HUMAN DEVELOPMENT PERSPECTIVE

2 pages

II: RESULTS AND LESSONS OF PAST COOPERATION

2 pages

III OBJECTIVES, PROGRAMME AREAS AND EXPECTED RESULTS

3 pages

IV: MANAGEMENT ARRANGEMENTS

1 page

Annex Resource mobilization target table for (name of country) (199X – 200X) See annex 2E for sample.

1 page

2. Chapter I: Development Situation from a Sustainable Human Development Perspective. Chapter I of the CCF outlines the key features of the country’s development situation. It is a summary of key development problems to be addressed as identified in the CCA and chosen for action by the United Nations system and the government within the UNDAF.

This analysis serves as the foundation upon w hich chapter III of the CCF is constructed.

3. Chapter II: Results and Lessons of Past Cooperation. Chapter II outlines the key results and lessons learned from past and present programmes, whether supported by UNDP or other external agencies. The analysis helps determine the objectives for UNDP cooperation during the next CCF period, and includes:

The last country review report and the UNDAF process will normally contribute a major input to chapter II of the CCF.

(a) The main results achieved as determined from monitoring and evaluation of the current programmes, annual and country reviews, reviews of the UNDAF and updates of the CCA;

(b) Experiences and lessons learned from past cooperation and management of programmes, including the programme approach, national execution, United Nations collaboration and results-based management.



4. Chapter III: Objectives, Programme Areas and Expected Results. This chapter describes the support that UNDP will provide in order to achieve the agreed objectives, reflecting the distinctive role of UNDP in the UNDAF, and including the special role of UNDP in helping the government to mobilize resources and to coordinate external assistance. It has the following sections:

(a) Objectives. This section briefly presents the agreed objectives of UNDP support and services in the country, reflecting a convergence between the government’s national priorities and the goals and sub-goals of UNDP, and United Nations conference agreements. It explains how the objectives of the CCF are consistent with the goals and objectives stated in the UNDAF. The CCF objectives should also reflect UNDP comparative advantages in advocacy or facilitation of policy dialogue;

(b) Programme areas. Based on national priorities, United Nations conference agreements and the UNDP focus areas, the CCF must contain a description of the selected programme areas and the nature of activities for which UNDP support is envisaged. All programming should be within the SHD framework and reflect a focus on results. The activities could also be cross-sectoral in scope, addressing several SHD focus areas within one programme area. The section also reflects the role of UNDP among other development partners;

The focus areas for SHD are described in 1.4.4. They are also reflected in the strategic results frameworks.

The partners may decide on a title of a programme area that reflects local needs while ensuring that the activities within it reflect SHD.

(c) Expected results. For each specific programme area, the CCF

should indicate expected results of the proposed support. The results should be sufficiently detailed to give a clear indication of how UNDP support will make a difference to the development of the programme country and, in particular, to poverty eradication. The results must be expressed in terms that are realistic and measurable. Furthermore, there must be clear means of indicating progress, such as indicators.

The management arrangements should be consistent with the lessons in chapter II of the CCF.

5. Chapter IV: Management arrangements. Chapter IV covers the

following:

(a) Programme management. This section explains the methods to be used for managing activities to be supported by UNDP, making specific reference to national execution and the programme approach and any joint or parallel programmes or projects with other organizations of the United Nations system.

(a) Where applicable, this section should also explain how other

arrangements will be applied, such as United Nations agency execution, involvement of non-governmental organizations



(NGOs), TCDC, the United Nations Volunteer (UNV) programme, Transfer of Knowledge Through Expatriate Nationals (TOKTEN) and United Nations International Short-Term Advisory Resources (UNISTAR);

(b) Monitoring, review and reporting. This section of the CCF must describe the arrangements for monitoring, review and reporting on progress towards achievement of results.

See 7.0 for details on monitoring, reporting and review.

6. Annex: Resource mobilization target table. The RMT table shows the resources that are needed to deliver support to the CCF. The table must be completed as indicated in annex 2E.

See annex 2E for a sample RMT table and 3.1 for information on resource mobilization.

2.4.9 Changes to the CCF

1. Change of duration. The following is applicable:

A change in duration involves extending or shortening the CCF.

(a) The duration of the CCF may be changed for the following reasons:

i. The change allows the new CCF period to be synchronized with the programming cycles of United Nations Children’s Fund (UNICEF), United Nations Population Fund (UNFPA), World Food Programme (WFP) and other United Nations system agencies operating in the country;

ii. The formulation of the new CCF is likely to be delayed because of an emergency situation affecting the day-to-day operations of the government;

iii. Significant changes in national development priorities are anticipated that will affect the content of the next CCF, thus requiring a delay of CCF formulation;

See the procedures on CCF duration in 2.4.4.

(b) In the event that a revised duration is proposed, the procedures set out in section 2.4.4 must be followed in order to preserve United Nations system harmonization;

(c) A CCF may not be extended for more than two years. The next CCF must be prepared during the extension period;

The format of a request for extension is given in annex 2G in the form of a note by the Administrator.



(d) Procedures. Before transmitting a request for extension, the resident representative must consult with the government, the United Nations country team and UNDG to ensure that the change will not disrupt the harmonization with programme periods of other funds and programmes. The country office submits the request for extension in the form of a note by the Administrator to the regional bureau with information on the result of UNDG harmonization. The regional bureau reviews the request and submits it to PWG for review. On the recommendation of PWG, the following action is taken:

The recommended length of the note for a one-year extension is one page; for a two-year extension it is up to four pages.

i. The Administrator approves extensions for up to one year and informs the Executive Board of his decision;

ii. In the case of a two-year extension, the note is submitted to the Executive Board for approval. The same applies to a second one-year extension.

(e) Format. The basic format for both one- and two-year extensions is the same. For a two-year extension and for a second one-year extension, the note must provide more details on results achieved in each programme area and results still to be achieved in the extension period;

For the format, see Annex 2G. Also see the Guidance Note on Resource Mobilization Target Tables in the DRPC Website at http://www.undp.org/bprm/drpc

(f) The assignment and release of TRAC resources may be requested for the period of a CCF extension. The normal TRAC resource assignment process is followed. The resource mobilisation target tables should be prepared for all CCF extensions whether for one year or two years. The revised resource mobilization target table covers the complete CCF period as revised (that is, the original duration plus the years of extension);

Resource assignment is covered in 3.0.

(g) If the duration of the extension cannot be determined because of specific national emergency circumstances, the Executive Board may authorize the Administrator to approve projects on a case-by-case basis.

See paragraph 2.4.9 para.3 on a suspension of the CCF.

2. Amendment. An amendment involves substantial changes to the CCF after its approval. An approved CCF may be amended if significant changes in the national development situation affect the content and relevance of the CCF. The following procedures apply to amendments:

See 2.4.8 on the CCF format. The same procedures apply where a government wishes to terminate a CCF before it is due to end and

(a) The government prepares the amendment in consultation with the UNDP country office. The amendment document follows the CCF format. It explains in chapter I the reasons for amendment and which sections of the CCF are to be revised. In each relevant section, the amendment document details the changes;

replace it with a new CCF. The amendment may be based on recommendations in the last country review.



(b) As with the CCF, the amendment document is reviewed by the LPAC, the regional bureau and the PWG and is then submitted to the Executive Board for approval;

(c) In the event that a revised duration is proposed, the procedures set out in section 2.4.4 must be followed to preserve United Nations system harmonization.

3. Suspension of the CCF. A CCF may be suspended when the situation in the country makes it impossible to undertake successfully the programmes and projects under the current CCF. In such cases, the procedures are as follows:

(a) The regional bureau, in collaboration with the country office prepares a note that the Administrator submits to the Executive Board. The note gives the reasons for requesting the suspension of the CCF and proposes management arrangements for the continuation of any programmes and projects within the country. It also explains the implications for harmonized programme periods, and the related consultations that have taken place within the United Nations country team.

The bureau may consult the BRSP and BDP (AROPG) on the format of the note.

(b) The regional bureau presents the note to the PWG for review and submission to the Administrator, who, in turn, presents the request to the Executive Board for approval;

(c) In the note, the Administrator may seek authority from the Executive Board to approve projects on a case-by-case basis until the situation permits a return to normal operations.

2.5 Review committees

2.5.1 Purpose

1. Review committees have an advisory and oversight function that supports the formulation and implementation of programmes and projects to ensure high-quality programming of UNDP resources. These committees base their reviews, inter alia, on the considerations for quality programming, which are presented in annex 2F. They must be convened to review the CCF, the country review, PSDs and project documents, and minutes must be prepared and maintained on file for later review by audit, evaluation or country review teams. The LPAC minutes on the CCF and country review must be forwarded to the regional bureau.

Additional guidance on the appraisal of programme support documents and project documents is provided in 5.4. Annex 2F applies to cooperation frameworks, programme and project design, appraisal, and monitoring and evaluation of actual performance.



2.5.2 Local Programme Advisory Committee

1. The LPAC is established by the resident representative to assist in appraising the quality of UNDP programme activities. The terms of reference of LPACs are prepared locally.

For a model LPAC terms of reference, see the Programming Manual Reference Centre on the UNDP Intranet.

2. The LPAC should be an inclusive process; it should involve persons outside the immediate programme preparation process, such as technical specialists, government officials, and representatives of NGOs, United Nations agencies and donor organizations. Particular attention should be paid to the inclusion of other United Nations colleagues to facilitate collaboration among United Nations agencies consistent with applicable General Assembly resolutions.

See General Assembly resolutions 50/120 and 53/192. Bureau directors may provide additional, bureau-specific guidance on the functions of LPACs in their regions.

2.5.3 Regional Bureau Programme Advisory Committee

1. The BPAC may be established by a regional bureau director to assist in assessing the high-quality programming of UNDP resources. The membership is determined by each bureau and may include staff from the bureau itself, and from other bureaux and such divisions and offices as the Bureau of Development Policy, the Evaluation Office, the Division for Resources Planning and Coordination (DRPC), The Special Unit for Technical Cooperation Among Developing Countries (TCDC) and DOPP. The bureau director sets the terms of reference of the BPAC, ensuring that they address bureau-specific goals as well as UNDP policies and procedures.

The BPAC can play a useful role as an oversight instrument.

2.5.4 Operations Group

See the Administrator’s e-mail message dated 16 October 2000 for further information on

1. The Operations Group and its Working Group are the primary oversight mechanism through which the Administrator exercises oversight of UNDP programme operations and ensures the corporate accountability of UNDP in meeting its goals and sub-goals. OG/PWG focuses on the broad issues of oversight, namely accountability, programme support and quality control.

the Operations Group in the Programming Manual Reference Centre. The minutes of the OG and PWG are made available on the PWG Website. http://intra.undp.org/osg/draft/pwg

2. The Associate Administrator is the chairperson; in his absence, he will nominate a Regional Bureau Director. Its membership consist of Regional Bureau Directors and/or their Deputies; the Directors of BDP, BOM, BRSP and/or their Deputies; the Executive Directors of UNCDF, UNIFEM and UNV; and the Directors of the Communications Office (COA), the Office of Audit and Performance Review (OAPR), ERD, EO and SU/TCDC. Other Bureau and Unit Directors will be invited for relevant agenda items. The Operations Group will meet once a week, typically on Thursdays for 90 minutes. OSG will provide the secretariat.

The OG is assisted by the Programme Working Group (http://intra.undp.org/osg/draft/pwg), which reviews documents in more detail and approves. Any issue of contentious or policy nature is sent to OG for consideration.



3. The main functions of OG are to:

In its review of the CCFs, the PWG identifies

(a) Review all cooperation frameworks and other programmes and approve them for submission to the Executive Board;

trends in their quality and design, and makes recommendations for improvements.

(b) Monitor the experience of the regional bureaux and UNDP as a whole in managing the use of all programme resources;

(c) Review overall CCF and country office operations once every three years in conjunction with the country review;

Where warranted, such action may include the suspension of delegated

(d) Review the results achieved of selected programmes as well as their quality and innovative features. Review the main lessons from cluster, thematic and programme evaluations;

authority at both the bureau and country levels.

(e) Suggest measures to improve programme performance to ensure high standards of quality and accountability, and take appropriate action.



ANNEX 2A

CONSULTATIVE PROCESSES AND REFERENCE DOCUMENTS The processes and documents that are described below serve a variety of purposes. They are mentioned here since they have proved to be useful in identifying areas for UNDP cooperation at the country level. See the sources referenced and/or electronic sites linked for more information on the purposes of these documents and the way they are prepared. The country strategy note (CSN) sets out priorities and plans of a recipient country and shows how the United Nations system can support those plans in an integrated way. The CSN is a government document, which is prepared at the government’s discretion. It represents the culmination of a process of consultation between the government and the United Nations system, with inputs from civil society and other donors. This document indicates the development needs of the country, puts forth a strategy towards meeting these needs, and identifies the programmatic roles of United Nations agencies within the strategy. The resident co-ordinator coordinates the contribution of United Nations agencies to the CSN and ensures that all agencies participate in its formulation. The CSN is described in detail in The country strategy note, United Nations, March 1994 (CCPOQ Manual).

The national human development report (NHDR) is a report with statistics and analysis of a country’s development situation. It normally mirrors the global human development report (HDR), issued annually by UNDP headquarters. The purpose, process for preparation, and content of NHDRs vary by country and year. The data, indicators and analysis of the NHDR provide baseline information for the CCF. The document National Human Development Reports: What, Why and How, Issues for Discussion contains guidance on producing NHDRs.

A national long-term perspectives study (NLTPS) is a strategic exercise for the management of long-term development. The studies are in-depth analyses of the social, cultural, political and economic history of the relevant country, undertaken by national teams. An NLTPS is often performed as a project supported by UNDP. It is considered a tool for good governance, that strengthens government, civil society and the private sector. As such, an NLTPS and the development scenarios it includes may assist in formulating CCFs. Details may be found in National Long-Term Perspectives Studies: A Tool for Governance, UNDP 1997 (Regional Bureau for Africa).

The national technical cooperation assessment and programmes (NATCAP) modality is a process for systematically reviewing the effectiveness of technical cooperation from all sources, as well as programming the priority needs for technical cooperation. A NATCAP is intended to help strengthen national human and institutional capacity, as well as to ensure coordination of technical cooperation in support of the government’s development policies and programmes. The process and related documents may provide guidance for formulating CCFs. Details may be found in National Technical Cooperation Assessment and Programmes (NATCAP): Presentation and Methodology, November 1993.

Documents on environment matters may include National Communications to the United Nations Framework Convention on Climate Change (UNFCCC) and Convention on Biological Diversity (CBD), which are often the outputs of enabling activity projects sponsored by UNDP-Global Environmental Facility (GEF). Other types of assessments and documents are often available at the country level or may be obtained from UNDP headquarters. These may include poverty assessments, thematic assessments, rural assessments, guidance on gender mainstreaming, etc. These also provide information and data useful for the formulation of the CCF. For example, see Empowering People - A Guidebook for Participation (BDP).



ANNEX 2B

COUNTRY COOPERATION

[FORTHCOMING]



ANNEX 2C

ILLUSTRATION OF STEPS IN PREPARING AND APPROVING THE CCF AND RELEASING TRAC RESOURCES

(When Executive Board approves CCF in January)

PREPARATION APPROVAL OF CCF AND RELEASE OF RESOURCES

DEVELOP-MENT

PARTNERS MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB GOVERNMENT UNDP COUNTRY OFFICE UNDP HQ EXECUTIVE BOARD

¬

®

¯

±

²

³

Key: 1. Country office sends draft UNDAF to headquarters. 2. Bureau sends comments on draft UNDAF to country office 3. Country office agrees with Government on process for

preparing CCF 4. Expanded LPAC reviews draft CCF 5. RR transmits draft CCF to Headquarters

6. OG/PWG reviews draft CCF and assesses programme quality 7. Deadline for submission of CCF to Executive Board Secretariat 8. Executive Board approves CCF and headquarters releases

TRAC-1 resources 9. Associate Administrator approves TRAC-2 resource assignment

and HQ releases TRAC-2 resources.

°

´ µ

Government prepares draft CCF

RR discusses draft CCF with Gov’t

Gov’t in consultation with RR finalizes CCF

Editing and Translation



Executive Board of the United Nations Development Programme and of the United Nations Population Fund

UNITED NATIONS Distr.

GENERAL

DP/CCF/ /1

(date)

_________________ session (year)

(Date of session), New York

Item ___ of the provisional agenda

UNDP

UNDP: COUNTRY COOPERATION FRAMEWORKS AND RELATED MATTERS

(FIRST) COUNTRY COOPERATION FRAMEWORK FOR (name of country)

CONTENTS

Paragraphs Page

I. DEVELOPMENT SITUATION FROM A SUBSTAINABLE HUMAN

DEVELOPMENT PERSPECTIVE...................................................................................

II. RESULTS AND LESSONS OF PAST COOPERATION………………………………………….

III. OBJECTIVES, PROGRAMME AREAS AND EXPECTED RESULTS…………………..…..

IV. MANAGEMENT ARRANGEMENTS…………………………………………………………..….

Annex. Resource mobilization target table for (name of country) (19xx – 20xx)………………….……

SAMPLE TABLE OF CONTENTS FOR COUNTRY COOPERATION FRAMEWORKS ANNEX 2D

ORIGINAL: LANGUAGE

DP



ANNEX 2E

CCF RESOURCE MOBILIZATION TARGET TABLE (In thousands of United States dollars)

Country: (name of country) Period: (xxxx-xxxx) [The next three rows are for CCF extensions only. Delete these rows if the RMT is not for a CCF extension.]

Original CCF period: Extended for (number of years) from (year) to end of (year) Revised CCF period: (xxxx-xxxx)

Source Amount Comments

UNDP REGULAR RESOURCES

Estimated carry-over Includes carry-over of TRAC 1, TRAC 2 and the earlier

AOS allocations. [This can also be negative.]

TRAC 1.1.1 Assigned immediately to country.

TRAC 1.1.2 0 to 66.7 per cent of

TRAC 1.1.1

This range of percentages is presented for initial planning

purposes only. The actual assignment will depend on the

availability of high-quality programmes. Any increase in the

range of percentages would also be subject to availability

of resources.

TRAC 1.1.3 [For countries in special development situations only.]

SPPD/STS

Subtotal a/

UNDP OTHER RESOURCES

Government cost-sharing

Third-party cost-sharing [This includes resources from donors, NGOs, World Bank etc. See 3.10, 3.11]

Funds, trust funds and other

Of which:

[These include UNIFEM, UNCDF, UNV, GEF, Montreal Protocol, Capacity 21 and other trust funds. Specify the total, and amount per fund under “of which”]

Subtotal

GRAND TOTAL a/

a/ Not inclusive of TRAC 1.1.2, which is allocated regionally for subsequent country application.

Abbreviations: TRAC = target for resource assignment from the core; SPPD = support for policy and programme development; STS = support

for technical services; UNCDF = United Nations Capital Development Fund; UNIFEM = United Nations Development Fund for Women; UNV =

United Nations Volunteers; GEF = Global Environment Facility.



ANNEX 2F

CONSIDERATIONS FOR QUALITY PROGRAMMING The following considerations alert the user to quality dimensions in programming and are generic to all phases of the programming process. They serve as a reference in the preparation of cooperation frameworks, in programme and project design, in appraisals and in monitoring and evaluating actual performance. 1. RELEVANCE

(a) How relevant are the programme or project objectives in relation to national priorities, and to the Country Cooperation Framework, United Nations Development Assistance Framework, Common Country Assessment or CSN?

(b) How relevant are the programme or project objectives to United Nations conference agreements and to the goals of the global and regional conventions to which the country is a signatory.

(c) How relevant are the objectives in relation to aspirations and needs of the target groups and the UNDP mission to promote sustainable human development?

(d) Has the programme or project context with its social, economic, political and environmental dimensions and the problems and their root causes been properly understood?

2. STAKEHOLDER PARTICIPATION AND PARTNERSHIP-BUILDING

(a) Have all the relevant stakeholders been identified, including government and civil society organizations, local communities, beneficiaries, donors and private sector?

(b) To what extent did the main stakeholders of the programme or project participate in the identification and design stages?

(c) Is the situation conducive to participation by all relevant stakeholders, and could the participation mechanisms be improved?

3. CONTRIBUTION TO POVERTY REDUCTION AND SUSTAINABLE LIVELIHOODS

(a) Have the poor been identified and does the programme contribute to poverty reduction, and at a minimum, not make the poor worse off than before?

(b) Does the programme address the multidimensional nature of poverty at three fundamental levels: (i) macro-economic policy; (ii) institutional change; (iii) micro-level interventions?

(c) Is the intervention creating an enabling environment for pro-poor economic growth? (d) Are employment opportunities and jobs being created? (e) Does the programme or project build on the assets and strengths of the target population and contribute to

strengthening their livelihoods through access to productive assets? 4. GENDER EQUALITY AND THE ADVANCEMENT OF WOMEN

(a) Has all relevant gender information -- with gender-disaggregated background data -- been identified and have gender issues relevant to impact and anticipated outcomes been systematically identified and pursued?

(b) Is the participation of gender specialists or representatives from women's stakeholders groups ensured in all steps of the programme cycle?

(c) Has the proportion of TRAC and other resources allocated to the advancement of women been clearly indicated?

(d) Have all possible steps been taken to ensure gender equity in the recruitment of project staff and consultants?



5. PROTECTION AND REGENERATION OF THE ENVIRONMENT

(a) Does the programme build on an adequate understanding of the biophysical dimensions, ecosystems, and existing environment-related issues in the programme area?

(b) Is the management of land, forest, water, and biological resources being improved in ways that ensure their protection and sustainable use?

(c) Does the programme improve the physical, social and economic access to food, water and energy services by impoverished people in rural and urban areas?

(d) Have the Environment Management Guidelines been applied and is the proposed intervention environmentally sustainable?

(e) Does the programme have implications for the global environmental areas of climate change, loss of biodiversity, pollution of international waters, land degradation, or ozone depletion?

6. GOVERNANCE

(a) Does the programme or project take into account the policy environment and the necessary interrelationships between the Government, civil society and the private sector, which underpin sustainability and achievement of objectives?

(b) Are governing institutions being strengthened for people-centred development? (c) Is decentralization being promoted to support local governance and empower communities and local

institutions? (d) Is an efficient and accountable pubic sector being promoted that serves all citizens?

7. MOST PROMISING STRATEGY (a) Have a variety of potential strategies been identified and considered? (b) Does the chosen operational strategy represent the most promising approach to address the development

problem? (c) Have the following issues been addressed:

- Social and environmental impacts and opportunities; - Risks and external factors; - Opportunities for synergies with other programmes; - Opportunity costs and trade-offs between various SHD dimensions?

8. INCORPORATION OF LESSONS LEARNED

(a) Has a review of relevant experiences of other development institutions within and outside the programme country been undertaken?

(b) Does the programme or project in design and implementation build upon lessons learned from experience? 9. CAPACITY DEVELOPMENT AND SUSTAINABILITY

(a) Does the intervention contribute to capacity development, by which individuals, groups, organizations, and communities develop their abilities to perform functions, solve problems, and set and reach objectives?

(b) Have the different dimensions of capacity at the systems, entity and individual levels been examined in defining most promising operational strategy? (See capacity assessment guidelines at http://magnet.undp.org, Technical Advisory Paper #3.)

(c) Have the management capacities been reviewed, and can be capacity-building measures for management be improved?

(d) Do elements crucial to ensuring the sustainability of the programme or project results exist, for example: - Enabling policies; - Financial support and mechanisms; - Individual and institutional capacities to carry on; - Sustainable resource management.

(e) Does the project, programme, or CCF build national capacity to follow-up United Nations conference agreements



10. FEASIBILITY AND TECHNICAL SOUNDNESS (a) Is there a logical relationship among the different programme or project elements, i.e., objectives, outputs,

activities, inputs, and related indicators? (b) Does the programme or project build on correct assumptions? (c) Have risks and other external factors been identified and necessary safeguards incorporated into the design? (d) Have risks been properly identified, including the potential for economic crisis, natural disasters, conflict and

civil strive? (e) Does the intervention allow adequate flexibility for redefinition and improvement of programme or project

components to respond to complex and changing realities? 11. MANAGEMENT ARRANGEMENTS

(a) How effective are the proposed management arrangements? (b) If national institutions or NGOs are designated to carry out certain activities without competitive bidding, has

the justification for waiving competitive bidding been documented? (c) If a management support unit is to be set up, has its cost-effectiveness as well as its impact on

sustainability and capacity-building been documented? (d) Where country office support is proposed, have cost-effectiveness, capacity-building measures and an exit

strategy been documented? (e) Are the implementation arrangements adequate and prior obligations and respective responsibilities clearly

defined? 12. INTEGRATION, SYNERGIES, COMPLEMENTARITY

(a) Does the intervention use the programme approach to the degree possible? (b) Have linkages (poverty, gender, environment, governance, etc.) with other projects and programmes been

identified and pursued? (c) Does the programme support the mobilization of additional resources for development? (d) Have opportunities for aid coordination been explored? (e) Does the intervention provide added value while complementing the work of other development partners?

13. RESULTS ORIENTATION

(a) Are adequate baseline data available to allow monitoring of progress and results? (b) Are adequate indicators, benchmarks and means of verification identified to measure results, including the

efforts on participation and partnership-building, gender, environment, etc.? (c) Have adequate mechanisms for monitoring and evaluation been established? (d) Are the objectives clear, precise and measurable? (e) Is it clear who is responsible for achieving the different results and undertaking the activities?

14. RESOURCES AND INPUTS

(a) Does the envisaged benefit justify the resources to be spent? (b) Does the budget adequately cover the envisaged activities and are the respective inputs by the Government,

UNDP and other partners defined? (c) Does the PSD or project document raise any policy issues concerning inputs? (d) If the programme or project is to be partly or wholly funded by a contribution from the private sector, have

adequate steps been taken to ensure that the association of UNDP with the private entity will be legal and beneficial?

(e) Have the procedures for financial management and reporting been described in the PSD or project document?



ANNEX 2G

FORMAT FOR A CCF EXTENSION

UNDP: COUNTRY COOPERATION FRAMEWORKS AND RELATED MATTERS

Request from the Government of ________________________________ for an extension of the [first] country cooperation framework

Note by the Administrator

Period of extension Resources required: ________ to _______ TRAC: Other resources: Total:

I. BACKGROUND AND JUSTIFICATION Explain why the Country Cooperation Framework could not be prepared at present. Provide an outline of the main results of the last country review or explain why a country review has not yet taken place.

II. OBJECTIVES

Summarize the objectives and programme areas of the country cooperation framework and describe the results achieved so far in each of the areas and the results to be accomplished during the extension period. Explain the actions that will be taken during the period of the extension with a view to preparing the next country cooperation framework. Explain how the extension will affect the harmonization of programme cycles, consistency with the priorities of the United Nations Development Assistance Framework and collaboration among United Nations system organizations.

III. RECOMMENDATION “The Administrator recommends that the Executive Board approve the extension of the (first) CCF for (name of country) for a period of two years, 1 January 1999 through 31 December 2000.” [In the case of a one-year extension this section is not needed. Instead, the following statement is made against this background, the Administrator wishes to inform the Executive Board that he/she has approved, the extension of the ___ country cooperation framework for (country) for a period of one year, beginning 1 January XXXX.


Chapter 3: RESOURCES MANAGED BY UNDP Page 1

Contents+

Page

3.0 RESOURCES MANAGED BY UNDP

3.1 Introduction

3.2 Resource mobilization 3.2.1 Definition 3.2.2 Methods 3.2.3 Responsibilities

3.3 TRAC 1 and TRAC 2 resources 3.3.1 Definitions 3.3.2 Policy on assigning TRAC 1 and 2 resources 3.3.3 Procedures 3.3.4 Delegation of authority 3.3.5 Management of TRAC resources 3.3.6 Advance authorization of TRAC resources 3.3.7 Exceptions to TRAC 1 and 2 funding procedures

3.4 TRAC 3 - Special development situations 3.4.1 Policies 3.4.2 Responsibilities 3.4.3 Scope of the funding categories 3.4.4 Procedures

3.5 Support services for policy and programme development 3.5.1 Overview 3.5.2 Allocation, release and assignment of SPPD funds 3.5.3 Management of SPPD funds 3.5.4 The SPPD document 3.5.5 Country office report on the use of SPPD 3.5.6 Sample SPPD cover page 3.5.7 Sample SPPD budget 3.5.8 Sample of SPPD end-of-year report



3.6 Support for technical services 3.6.1 Overview 3.6.2 Allocation, release and assignment of STS funds 3.6.3 Management of STS funds 3.6.4 The STS document 3.6.5 Approval 3.6.6 Report on use of STS 3.6.7 Sample STS cover page 3.6.8 Sample STS budget 3.6.9 STS description of services 3.6.10 STS end-of-year report

3.7 Administrative and operational services 3.7.1 Definition 3.7.2 Applicability 3.7.3 Management

3.8 Development support services 3.8.1 Definition and purpose 3.8.2 Allocating DSS funds 3.8.3 Use of DSS funds 3.8.4 Recruitment of consultants 3.8.5 Monitoring, reporting and evaluation 3.8.6 DSS end-of-year report

3.9 Technical cooperation among developing countries 3.9.1 Definition and purpose 3.9.2 The TCDC framework 3.9.3 Criteria and categories 3.9.4 Procedures for project funding 3.9.5 Appraisal 3.9.6 Monitoring and evaluation

3.10 Cost–sharing 3.10.1 Definition 3.10.2 Policies on cost-sharing 3.10.3 Types of cost-sharing arrangements 3.10.4 Approval authority 3.10.5 Modifications to the standard agreement 3.10.6 Budgeting for cost-sharing 3.10.7 Cost-sharing apportionment 3.10.8 Payment schedules 3.10.9 Payments and currency 3.10.10 Unspent cost-sharing contributions 3.10.11 Reporting 3.10.12 Managing CCF Cost-sharing contributions



3.11 Contributions from the private sector 3.11.1 Introduction 3.11.2 Definition 3.11.3 Policies 3.11.4 Procedures 3.11.5 Appraisal and approval 3.11.6 Marketing and publicity 3.11.7 Reporting

3.12 Government cash counterpart contributions 3.12.1 Definition 3.12.2 Procedures 3.13 Trust funds 3.13.1 Definition 3.13.2 Policies on trust funds 3.13.3 Types of trust funds 3.13.4 Trust fund agreement 3.13.5 Approval authority 3.13.6 Implementation 3.13.7 Coding trust funds 3.13.8 Accounting 3.13.9 Reporting

3.14 UNDP – administered funds

3.15 Parallel financing

Annexes 3A Participants in the support cost facilities 3B Third-party cost-sharing agreement between UNDP

and a government: Model

3C Cost-sharing agreement between UNDP and the private sector: Model

3D TRAC 1.1.2 assignment form 3E Summary of programme financial information



3.0 RESOURCES MANAGED BY UNDP

3.1 Introduction

1. UNDP country offices can access a variety of funds in order to develop programme activities and achieve results in accordance with UNDP goals and, in particular, in the strategic areas of support. The present chapter covers the range of resources that can be used to develop and support programme and project activities. The chapter begins with the UNDP financial framework, which outlines the allocation of regular resources. Sections 3.3 to 3.9 of the chapter explain the uses of these resources, namely:

The Financial Rules and Regulations of UNDP recognize two main categories of funding: Regular (core) and Other (non-core) resources. The terms Regular and Other are used in order to harmonize terminology among United Nations funds and programmes.

Line 1.1 – TRAC resources The financial framework was approved by the

Line 1.5 - Technical cooperation among developing countries Executive Board in decision 95/23.

Line 1.6 - Administrative and operational services

Line 2.2 - Support services for policy and programme development

Line 2.3 - Support to technical services

Line 3.1 (part) - Development support services

2. The other regular resources that form part of the UNDP financial framework are dealt with in other chapters, as follows:

The full financial framework is set out in table 3.1 below.

Lines 1.2 and 1.3 – Regional and global programmes: Refer to chapter 8.

Line 1.4 – Evaluation: These resources are used for thematic, strategic and other evaluations and reviews, as well as for developing procedures and guidelines for monitoring and evaluation. Refer to chapter 7.

Line 2.1 - Programme support and development activities: These resources are managed as part of the UNDP biennial support budget.

Line 3.1 (parts) - Support to the Resident Coordinator: Refer to chapter 9.

Lines 3.2, 4.1 and 4.2 – United Nations operational activities and the biennial budget: These resources, as well as those under line 2.1, are not used directly for programming and are, therefore, not discussed in this manual. For information, refer to the financial reports submitted to the UNDP Executive Board.

The Executive Board normally reviews these financial reports at its third regular session.



3. Sections 3.10 to 3.13 deal with other resources available for

programming, namely cost-sharing, contributions from the private sector, Government cash counterpart contributions (GCCC) and trust funds. Some trust funds support specific themes, such as the Global Environment Facility (GEF), the Montreal Protocol and Capacity 21. The main distinction between cost-sharing and trust funds is that cost-sharing is fully integrated in a UNDP project or programme support budget, whereas trust funds must be accounted for and reported on separately.

For GEF, refer to portfolio information http://www.undp.org/gef/portf/main.htm

4. In decision 98/2, the Executive Board reiterated that regular resources remain the bedrock of UNDP while recognizing the value of other resources. The Board stipulated that the additional costs to UNDP of managing activities funded from other resources be fully recovered. It also decided that any country office support to project implementation must be accompanied by capacity-building measures, including clear exit strategies.

These topics are addressed in 6.0.

5. Finally, sections 3.14 and 3.15 deal with additional categories of resources, namely the UNDP-administered funds, such as UNV, UNCDF and UNIFEM, as well as with parallel financing and management service agreements (MSAs).

See 5.6.2 on management service agreements (MSAs).



Table 3.1 – The UNDP financial framework

Breakdown of regular resources as determined by UNDP Executive Board in decision 95/23.

Regular resources allocations

Line

Percentage earmarkings (%)

1.0 Programmes/projects 70.6 Country

1.1 Target for resource assignments from core 1.1.1 Assigned immediately to countries (TRAC 1) 30.0 1.1.2 Assigned regionally for subsequent country application (TRAC 2) 20.0 1.1.3 Resources for development in countries in special situations (TRAC 3) 5.0

Subtotal 55.0 Intercountry

1.2 Regional 7.6 1.3 Global, interregional and special activities 4.2

Subtotal 11.8 1.4 Evaluation 0.3 1.5 Special resources for TCDC activities 0.5 1.6 Resources for implementation 3.0

Subtotal 3.8 2.0 Programme development and technical services 6.6

2.1 UNDP programme support and development activities 3.0 2.2 Support for policy and programme development 2.0 2.3 Support for technical services 1.6

3.0 Support to United Nations system and aid coordination 6.0

3.1 Support to the Resident Coordinator (SRC) Development support services (DSS)

1.7

3.2 United Nations operational activities 4.3 4.0 Biennial budget 16.8

4.1 UNDP headquarters 6.8 4.2 UNDP country offices 10.0 TOTAL 100



3.2 Resource mobilization

3.2.1 Definition

1. Resource mobilization refers to the process of securing funds for programmes and projects. Funds may be received from the following sources:

(a) Regular resources: Regular resources finance the core UNDP operations. The funds derive from formal pledges by Member States.

See the UNDP financial framework in 3.1, table 3.1 for an outline of the regular resources allocations.

(b) Other resources: UNDP programme activities also depend on the

mobilization of other resources, which take the form of cost-sharing, trust funds, or government cash counterpart contributions.

See 3.10 for details on types of cost-sharing and 3.13 for trust funds.

(c) Additional resources: Additional resources are pledged to UNDP-administered funds such as UNV, UNCDF and UNIFEM, while parallel funding and management service agreements may also contribute to UNDP’s work.

3.2.2 Methods

1. Country offices must establish a strategy for mobilizing resources. A realistic resource mobilization target is recorded in the resource mobilization target (RMT) table included in every country cooperation framework (CCF). This table shows resources that will be needed to finance the programme activities in the CCF.

See annex 2E for a sample RMT table.


1. One of the tasks of country offices is to mobilize resources at the country level in line with the RMT.

2. Regional bureaux mobilize resources for regional programmes. Along with country offices, they may also mobilize resources for individual countries.

3. The Bureau for Development Policy (BDP) mobilizes resources for global programmes and projects.

4. The Division for Resources Mobilization (DRM) at UNDP headquarters is responsible for formulating and coordinating UNDP policy on resource mobilization.



3.3 TRAC 1 and 2 resources

3.3.1 Definitions

1. TRAC resources. TRAC 1 and TRAC 2 are the main regular resources, and they are used in combination with other resources to fund the programmes set out in the CCF. TRAC 3 is available exclusively for projects in countries in special development situations, as explained in section 3.3.

2. TRAC 1 earmarkings. DRPC earmarks funds for individual countries, in accordance with the distribution methodology approved by the Executive Board, which takes into account the country’s gross national product per capita, its population and other criteria that the Board may determine. These earmarkings are subject to periodic adjustment in accordance with the actual level of funds pledged to regular resources and with other factors relevant to the management of these resources during the rolling three-year planning framework.

See Executive Board decisions 95/23 and 98/19 for information on the current distribution.

3. TRAC 1 and 2 estimates in the CCF. The TRAC 1 and 2 estimates, included in the RMT table of the CCF, indicate the level of resources likely to be available to a country. The TRAC assignment is determined by the Administrator, in accordance with procedures outlined in 3.3.3 below. Since the global earmarking for TRAC 2 is 66.7 per cent of the global earmarking for TRAC 1, the notional target for TRAC 2 in the RMT is expressed as 66.7 per cent of a country’s TRAC 1 earmarking. The estimates included in the RMT must take into account any adjustment in global TRAC earmarkings so as to reflect the actual pledged contributions.

The minimum TRAC assignment is TRAC 1 only. The maximum is 200 per cent (i.e., double) of TRAC 1. The average TRAC assignment is 166.7 per cent of TRAC 1.

4. TRAC 1 and 2 assignment. When the CCF is approved and the amount of both TRAC 1 and 2 funds is confirmed, this amount becomes known as an assignment. The TRAC 2 assignment may not exceed 100 per cent of TRAC 1 assignment, as stipulated in Executive Board decision 95/23.

3.3.2 Policy on assigning TRAC 1 and 2 resources

1. TRAC 1 resources are earmarked for individual countries, as indicated above. They become available automatically when the UNDP Executive Board approves a CCF or its extension.

2. TRAC 2 resources are allocated to the five regional bureaux in proportion to the total TRAC 1 earmarkings for each region. The regional bureau assesses the quality of the programmes in each CCF and recommends to the Associate Administrator, through the Programme Working Group (PWG) the distribution of TRAC 2 resources among the countries of the region. The TRAC 2 assignment is valid for the full duration of a CCF or CCF extension.

For information on CCF extension, see 2.4.9.



3. A regional bureau must manage TRAC 2 resources in such a way that it is possible at all times to reward quality programmes. Also, the bureau must meet the percentage criteria established by the Executive Board for the distribution of TRAC resources to least developed and low-income countries. This mandated distribution requires that the group of low income countries receive at least 88 per cent of available TRAC resources and that LDCs receive at least 60 per cent of available TRAC resources.

See Executive Board decision 95/23.

4. Net contributor countries (NCCs) are exempt from some of the resource assignment procedures.

See 3.3.7 para.2 below.

3.3.3 Procedures

1. When submitting the final CCF to headquarters for approval, the resident representative also submits the summary of programme financial information table and requests TRAC 2 resources.

The summary (see annex 3E) indicates the expected resources in each programme area.

2. The Programme Working Group (PWG), in reviewing both the final

draft CCF and financial information table, rates the CCF either "average", "above average", or "below average". The rating will be based on the quality of the programmes. In order to assess quality, the PWG considers the report on the last country review, the annual reviews and reports, the expected future results as depicted in the CCF, and any other pertinent information.

See 7.5 for information on country and annual reviews. The annual reports contain information on results achieved. See 2.4.7 for CCF procedures.

3. The PWG uses the considerations for quality programming to help in reaching a decision on the quality of the programmes. Among these considerations, it applies the following criteria in particular:

See annex 2F on the considerations for quality programming.

(a) Contribution to national priorities (see consideration 1 on relevance)

(b) Strengthening national capacity (see consideration 9 on capacity development and sustainability)

(c) Thematic focus (see considerations 3,4,5 and 6 on the respective UNDP focus areas)

(d) Results (see considerations 12 on integration, synergies and complementarity, and consideration 13 on results orientation)

(e) Resource mobilization (see the Summary of Programme Financial Information and the CCF resource mobilization target table)



4. Based on PWG’s recommendation, the Regional Bureau prepares a TRAC 2 Assignment form in the period between the PWG endorsement of the CCF and approval of the CCF by the Executive Board and submit it to the PWG Secretariat. In section B of the form, the regional bureau describes concisely the programme areas. In section D, the bureau indicates the recommended TRAC 2 percentage. If the CCF is rated “Average”, the Regional Bureau has the option to approve between 65% and 75% for TRAC 2 resources; for a rating of “Below Average”, the percentage falls anywhere below 65%; and for a rating of “Above Average”, the percentage falls between 75% and 100%. Within these ranges, the Regional Bureau decides on the TRAC 2 assignment percentage to recommend to the Associate Administrator. The bureau obtains the signature of DRPC in section D of the form to confirm that the financial data is in line with the CCF RMT before submitting the form to the Associate Administrator.

See annex 3D for the TRAC 2 assignment form. See annex 2E for the RMT.

5. The Regional Bureau finalizes the summary of programme financial information table in line with the recommended TRAC 2 percentage, after further consultations with the Country Office. Upon approval of the CCF by the Executive Board, the PWG Secretariat forwards the TRAC 2 assignment sheet to the Associate Administrator for approval. DRPC assigns the approved TRAC 2 resources to the country office through the regional bureau.

TRAC 1 resources are assigned to the country when the Executive Board approves the CCF.

6. PWG periodically reviews the TRAC 2 assignments for all regional bureaux to analyse trends. To facilitate this review, the regional bureaux present charts showing the distribution of TRAC 2 resources broken down by different country categories (LDC, low income, other) within the region.

3.3.4 Delegation of authority

1. Once TRAC 1 and 2 resources are assigned, the regional bureau Director normally delegates full authority to the country office to proceed with the preparation and approval of programmes and projects within the CCF and the resource planning framework (RPF).

An explanation of the resource planning framework is given in 3.3.5 below.

2. The Director may, however, withhold or limit this authority if any Executive Board decisions so require or in cases of weak capacity of the country office or the complexity of the programmes or projects.

3.3.5 Management of TRAC resources 1. The status of TRAC 1 and 2 assignments for a country is reflected in its

RPF, which sets out financial limits to programme commitments and expenditures in the form of annual authorized programming levels (APLs). APLs cover the three-year resource planning period and are based on country TRAC resource assignments and the resources actually received by UNDP

For further information contact BOM/DRPC or see their home page at: http://www.undp.org/bom/maintopics/divisions/drpcmain.html



2. DRPC, in consultation with the regional bureau and the country office, updates the RPF annually to take into account the annual roll-over of the three-year planning period and other programming parameters. With the annual roll-over, a new third year is added and the year just completed is dropped. Additional resources are made available to the country for the newly added third year so as to ensure that programme commitments can be made for up to three years.

3.3.6 Advance authorization of TRAC resources

1. TRAC 1 and 2 resources are released for three years at a time in accordance with the rolling resource planning system. However, the three-year planning period will often extend beyond the period covered by the CCF or CCF extension. For the years outside the CCF period, and pending the approval of the new CCF, DRPC may approve an advance authorization of TRAC resources of up to 167 per cent of the TRAC 1 earmarking so as to avoid a gap in programme activities.

2. The resident representative makes the request for an advance authorization of TRAC resources through the regional bureau, normally at the time when the periodic revision of the RPF is made. The advance authorisation must be regularised as soon as possible through normal TRAC assignment procedures: (i) submission of new CCF or CCF extension to the Executive Board; and (ii) submission of a TRAC-2 assignment form and Summary of Programme Financial Information table along with the final draft CCF to PWG.

See 3.3.3 on assignment procedures.

3. In order to avoid a break between programming periods, a new CCF must be submitted to the Executive Board for approval before the ongoing CCF or CCF extension expires.

4. If the CCF is not approved by the Executive Board at the due time, or if the TRAC assignment recommendation is delayed, the advance authorization will be withdrawn unless there are exceptional circumstances. The regional bureau must explain such circumstances to the OG and propose an alternative course of action for OG consideration.

See 2.4.4 on duration.

3.3.7 Exceptions to TRAC 1 and 2 funding procedures

1. CCF extension. When a CCF is extended, the country is eligible for TRAC 1 and TRAC 2 resources covering the period of the extension. In this case, the following procedures apply:

(a) TRAC 1 resources are assigned upon approval of the extension

(b) If the extension is for one year only, and if there are no substantive changes in the programmes, DRPC will maintain the TRAC 2 resource assignment percentage, upon submission by the country office of a new summary of programme financial information;



(c) If the extension is for more than one year, TRAC 2 resources for the period of extension are assigned only after the regional bureau and OG/PWG have reviewed the quality of programmes outlined in the extension request. This review and the processing of the TRAC 2 assignment recommendation is carried out according to the procedures set out in 3.3.3.

Net contributor countries are programme countries with GNP per capita above $4,700 per year. The current arrangements for net

2. Net contributor countries (NCCs). First-time NCCs are eligible for TRAC 1 resources for a three-year grace period. These countries, by extension, remain eligible for consideration for TRAC 2 assignment, based on the usual assessment criteria that apply to other programme countries. Starting from 2001, in accordance with the Executive Board decision 99/2, the existing NCCs (after three year grace-period) are not eligible for reimbursable TRAC 1, and by extension, are not eligible for TRAC 2 assignment.

contributor countries are given in Executive Board decision 99/2. See the list of NCCs in the Programming Manual Reference Centre in the UNDP Intranet.

3. Countries without a CCF. As mentioned in 2.1.2, the Executive

Board may determine that the situation in a country does not permit the formulation of a CCF. In this case, if a country wishes to obtain TRAC 1 or 2 funds, the country should submit brief programme proposals in line with chapter III of the CCF and covering strategy, programme areas and expected results. The normal procedures for the assignment of TRAC resources apply, subject to any particular directives laid down by the Executive Board regarding the programmes in that country. To permit forward-planning, DRPC may exceptionally grant advance authorizations of TRAC resources to countries without a CCF. Such an authorization must be requested by the regional bureau and is subject to agreement on a firm deadline for the submission of programme proposals.

3.4 TRAC 3 - Special development situations

3.4.1 Policies

See 1.4.9 and Executive Board decision 95/23 for the legislative history

1. UNDP mandate. The Executive Board has earmarked five per cent of UNDP regular resources under TRAC 1.1.3 for use by UNDP so as to address rapidly and effectively the special development needs of countries in crisis or countries vulnerable to crises.

of the earmarking. Also see the UNDP financial framework provided in 3.1, table 3.1.

2. Purpose. The purpose of TRAC 3 resources is to help to finance technical cooperation to prevent a crisis or reduce the severity of a crisis. Therefore, the emphasis is on prevention and preparedness. TRAC 3 is also used to enhance the capacity of the United Nations system in such situations, including the capacity to support the coordination of the response of other partners to a sudden crisis.



3. Allocation and approval. TRAC 3 resources are allocated and

approved in compliance with Executive Board decisions on the use of TRAC resources including the goal of allocating 88 per cent of regular resources to low-income countries and 60 per cent to LDCs. However, there is no requirement for distributing TRAC 3 resources equitably between different countries or regions.

4. Infrastructure. Reconstruction and rehabilitation of physical

infrastructure and the purchase of relief materials are not eligible for TRAC 3 funding.

5. Categories of objectives. TRAC 3 resources are earmarked to support three categories of objectives:

(a) Determine and address priority needs of a preventive nature or respond with strategic programming initiatives to complex development situations;

(b) Provide an immediate response to sudden crises and support coordination of such responses by UNDP and other partners;

(c) Prevent and prepare for disasters through training, capacity development and technical support services.

6. Programming. UNDP policies on formulating projects detailed in chapter 4 and the management arrangements detailed in chapter 6 apply to projects funded by TRAC 3 funding. Projects funded by TRAC 3 have a short duration, normally not exceeding 12 months. Executive Board decision 98/2 provides for the possibility of direct UNDP execution in countries in special development situations.

See 6.2.5 on how to request direct execution.


1. The country office develops projects and monitors the implementation of projects in accordance with standard UNDP procedures.

2. Under the leadership of the resident coordinator/resident representative, a United Nations Disaster Management Team (UNDMT) is established at the country level after a disaster-management training programme has been held in the country; this team appraises the project documents for category II activities, especially those in response to sudden crisis situations.

The team includes all United Nations agencies and funds represented in a country, as well as government and civil society representatives.

3. The Emergency Response Division (ERD), at UNDP headquarters, is the fund manager for TRAC 3 resources.



4. The Crisis Committee reviews proposals and recommends the allocation of TRAC 3 resources. The Crisis Committee establishes the criteria for reviewing proposals and submits the criteria, including periodic updates, for Executive Team (ET) approval. ERD is the secretariat of the Crisis Committee.

See 2.5.4 for further information on OG. See the Administrator’s e-mail message dated 16 October 2000 for further information on the Crisis Committee.

5. The regional bureaux are responsible for ensuring that UNDP programming policies and procedures are complied with and that resources are used in line with any conditions expressed in the decisions of the ET or the Crisis Committee.

See box 1 below for the proposal format.

3.4.3 Scope of the funding categories

1. Category I: Complex Development Situations. Category I resources are used to reinforce national efforts to prevent further deterioration of development gains and assets and to accelerate rehabilitation and recovery. This category includes the following areas of activity:

A strategic framework is a planning tool similar to a national plan or a United Nations Development Assistance Framework (UNDAF) that may be needed where there is no

(a) Strategic Coordination: strategic frameworks, assistance strategies, planning and information, preventive initiatives, resource mobilization;

functioning government. A strategic framework outlines political, humanitarian and development programmes for

(b) Demobilization: encampment and quartering, disarmament, small arms, screening and demobilization, transitional support, re-training;

recovery in post-crisis settings and promotes coherence of efforts between national and international partners.

(c) Reintegration: resettlement and repatriation, logistical support, shelter and social services, transitional support, sustainable livelihoods;

(d) Mine Action: capacity-building, socio-economic reinsertion, mine clearance, UXO clearance;

(e) Social Recovery: peace consolidation, reconciliation and confidence-building, public security/civil protection, governance, elections, institutions, human rights and gender equity, community rehabilitation, economic rehabilitation.



2. Category II: Sudden Crisis and Immediate Response. Category

II resources support an immediate response to non-chronic, temporary and emergency conditions created by natural environmental disasters (e.g., earthquakes, floods or hurricanes) or man-made and technological disasters, e.g., oil spills. Sudden and rapid dislocations of large population groups in life-threatening situations, often within the context of a complex emergency, also qualify for assistance. This category includes the following areas of activity:

(a) Support for the coordination functions of the Government and the United Nations resident coordinator. This may include the recruitment of emergency-management personnel to assist the government and UNDMT in coordination, reporting, needs assessment and resource mobilization, including the formulation of an appeal for international assistance;

(b) Logistic support services. These include communications equipment, the planning and management of rapid deployment of relief supplies, and equipment to facilitate immediate support to affected populations, such as chartering aircraft.

3. Category Ill: Capacity Development. Category Ill resources are available to strengthen the capacity of governments to prevent, mitigate or manage crises and the special development situations they create. Areas of activity include early warning systems and data collection, analysis and dissemination systems, particularly those related to risk and needs assessments, and measures to improve decision-making on resource allocation and mobilization strategies. UNDP support should be catalytic and have the potential to attract investment by others. Category III activities are eligible for technical cooperation from the disaster, reduction and recovery programme implemented by ERD.

3.4.4 Procedures

1. Category I and III resources. The procedure for these categories is outlined below:

(a) To obtain funding for a category I or category III project, the country office prepares a two-page proposal and sends it to the regional bureau and ERD. The regional bureau presents the proposal to the Crisis Committee, following consultation with ERD;



BOX 3.1

Proposal for TRAC 1.1.3 Category I and III Resources I. BACKGROUND

A. Description of crisis conditions B. Response of the United Nations Country Team/DMT

II. PROPOSED ACTIVITIES AND EXPECTED RESULTS*

A. Description of proposed support and expected results* within the context of the response by the United Nations Country Team/DMT

B. List measurable results expected III. MANAGEMENT ARRANGEMENTS

A. Financial and administrative management and reporting

B. Reporting on progress and results* of activities IV. BUDGET

A. Estimate of TRAC 3 resources required, by year. B. Estimate of other resources required (e.g., cost-

sharing, trust funds) * See 4.2.7 for an explanation of results.

(b) The Crisis Committee reviews the proposal and rejects or

endorses the proposal. The Crisis Committee decision may include guidance or instructions to be followed when formulating and approving the project document;

See the Administrator’s e-mail message dated 16 October 2000 regarding the Executive

(c) ERD submits to the Crisis Committee a monthly summary table showing individual TRAC 3 allocations by category;

Team in the Programming Manual Reference Centre.

(d) ERD confirms the annual allocation for the project to the regional

bureau. The regional bureau may delegate authority for project approval to the UNDP resident representative, specifying the annual allocations and conveying any comments made or conditions imposed by the Crisis Committee and ET. The regional bureau ensures that the country office complies with the instructions or guidance conveyed by the Crisis Committee or ET;

The regional bureaux monitor the implementation of programmes and projects funded from TRAC 3.



(e) The country office formulates the project in accordance with standard UNDP policies and procedures, as set out in chapters 4 and 5. Some of the procedures may be omitted if justified by the circumstances, especially the need for quick responses. Similarly, the content of the project document should be kept to the essentials;

(f) The formulation should be done in consultation with the United Nations Country Team, the United Nations Disaster Management Team and the national authorities, as well as in-country representatives of donor organizations and civil society;

Country offices can obtain technical support from ERD to assist in project formulation.

(g) The project number must include the source of funds code 07 to indicate that the source of funds is TRAC 3. Any AOS costs must also be charged to source of fund code 07 and must be included within the amount allocated;

See 3.7 on AOS.

(h) The country office must send a fully signed project document to ERD and the regional bureau within three months of receiving approval of the TRAC 3 allocation. Failure to do so may result in revocation of the allocation.

2. Category II resources. The process for this category is:

(a) The UNDP resident representative has the authority to approve an allocation from category II of up to a maximum of $100,000, provided the following conditions are met:

i. A disaster or crisis warranting an immediate response has occurred and the government has issued an international appeal;

ii. In consultation with UNDMT, the country office forwards to ERD, copied to the regional bureau, the standard disaster situation report normally provided to the United Nations Emergency Relief Coordinator (ERC);

iii. the resident representative promptly informs ERD of the activities planned, the amount approved and confirms that the category II funds can be obligated within 30 days;

(b) In the event that a second sudden crisis occurs and additional

resources are required, the delegated authority can be used by the resident representative only if all monitoring and reporting requirements from the previous approval have been fulfilled. In submitting a new request, the resident representative must certify that this condition is fully met;



(c) Within 30 days of approving category II resources under delegated authority, the UNDP resident representative must forward a fully signed project document to ERD through the regional bureau. The project document format applies; it may, however, be simplified to incorporate key elements only and must clearly describe how category II resources will be used and specify the outputs to be produced;

(d) Failure to meet the 30-day deadline may cause the allocation to be revoked.

3. Monitoring, evaluation and reporting requirements. Standard monitoring, evaluation and reporting procedures apply to projects funded by TRAC 3 resources. Regional bureaux are responsible for ensuring compliance. ERD is responsible for monitoring the financial status of TRAC 3 resources within the established resource planning framework and for reporting on them regularly to the Crisis Committee.

See 7.0 on monitoring, reporting and evaluation.

3.5 Support services for policy and programme development

3.5.1 Overview

1. Purpose. Support Services for Policy and Programme Development (SPPD) is funded by line 2.2 of the UNDP financial framework. Through SPPD, countries can obtain support from participating United Nations agencies to develop policies and programmes, such as:

Note: In its decision 98/19, the Executive Board endorsed the merger of SPPD and STS into a single earmarking under line 2.2. of the UNDP financial framework with effect from the year

(a) Significant studies within the UNDP focus areas (for example, high-level policy advice, sectoral studies and technical cooperation needs assessments);

2001. While the principles and procedures for SPPD and STS will largely be retained in the merged facility, the procedures

(b) Formulation of national programmes, including gender or environmental assessments;

will be updated to reflect the merging of lines.

(c) Formulation of the common country cooperation assessment, the UNDAF and the CCF;

(d) Thematic evaluations.

2. SPPD in regional programmes. SPPD is also used in support of regional programmes. The procedures for using SPPD funds at the regional level are the same as the country-level procedures described in the present section, subject to modifications relating to the way regional programmes are developed and implemented.



3. Participating parties. Line 2.2 funds can be used only when a participating United Nations agency or regional commission carries out the activity in question. Other United Nations bodies and other international or national institutions and NGOs may also provide services if those services are channeled through a participating United Nations agency.

See annex 3A for a list of participating United Nations agencies.

3.5.2 Allocation, release and assignment of SPPD funds

1. For the purposes of the resource mobilization target (RMT) table in the CCF, country offices can estimate their SPPD funding as approximately five per cent of their TRAC 1 resources. This reflects the relationship between the earmarkings for line 2.2 and those for TRAC lines 1.1.1 and 1.1.2. The regional bureau informs country offices of their SPPD earmarkings during the preparation of the CCF.

2. The Division for Resource Planning and Coordination officially assigns and releases SPPD funds to the regional bureaux for the resource planning period. SPPD is distributed to the regional bureaux in proportion to the funds being made available under TRAC 1, TRAC 2 and line 1.2 in the financial framework. In turn, the regional bureaux release SPPD funds for advance programming to the country offices.

3. The final assignment and release of SPPD resources are made upon the approval of the CCF, or subsequently. This assignment may differ from the estimates of SPPD included in the RMT table of the CCF, since the bureau examines the substantive programming requirements. Moreover, as with all regular resources, the assignment of SPPD funds can change according to the level of contributions received by UNDP.

3.5.3 Management of SPPD funds

1. The resident representative, in consultation with the Government and

the participating United Nations agencies, is responsible for the programming and management of SPPD funds released to a country. The approval of the SPPD document by the resident representative must be made in accordance with normal country office appraisal and approval procedures. The resident representative must ensure that all approved SPPD projects are recorded in the global financial information management system (FIM).

2. The regional bureau reviews the use of SPPD funds regularly. Following this review, the bureau may redistribute SPPD funds among countries of a region so that the funds are directed where they can be used most effectively

3. The country office sends the signed SPPD document to the participating United Nations agency and the regional bureau. The



participating United Nations agency and the regional bureau. The agency then receives the SPPD funds from UNDP headquarters. The agency must submit an annual delivery report to both UNDP headquarters and the country office concerned, showing SPPD expenditures by project at the sub-line level.

3.5.4 The SPPD document

1. To use SPPD funds, the country office prepares an SPPD document for each SPPD-funded activity. The SPPD document consists of three parts: a cover page, a description of services and the SPPD budget. An example SPPD document is provided at the end of this section.

2. Cover page. The following should be observed:

(a) Since the approved SPPD activity constitutes an agreement between UNDP and a participating United Nations agency or agencies, representatives of both UNDP and the United Nations agency or agencies sign the cover page. The signature of the Government is not required, but the resident representative must consult closely with the government authorities concerned with the activity;

(b) In the case of SPPD activities involving more than one participating United Nations agency, the cover page identifies both the lead agency and any others involved, and the amounts budgeted for each agency. The document is signed by UNDP and on behalf of the others;

(c) SPPD activities employ the six-field code of the standard UNDP project number, as explained in 5.3.2 The source of funds code is 08;

(d) The brief description may be omitted if the description of services is fully explanatory.

3. Description of SPPD services. In this section of the document, a brief description is provided of the services that the participating United Nations agency agrees to provide and the associated work months. Also indicated are the relationship to national priorities, the link with the CCF, the applicable strategic areas of support, the issues to be addressed and the expected results to be achieved. A clear reference should be made to complementary sources of financing, including regular and other resources of the participating agency. The description must also include a schedule of activities and the terms of reference for all international and national consultants and subcontracts; the substantive reports required from the agency must also be specified.

For further information on the strategic areas of support, see 1.3.2



4. The SPPD budget. The following applies:

See 5.2 for information on preparing the budget.

(a) An SPPD budget is prepared according to UNDP standard

budget procedures except that only the following budget components, with budgets recorded on the valid sub-lines, can be included. Thus, for example, equipment cannot be purchased through an SPPD project;

(b) Administrative and Operational Services cannot be applied to SPPD projects;

(c) Only one system of reimbursement and one standard rate are used for SPPD. Participating United Nations agencies are reimbursed for international personnel services at the standard rate of $14,000 per work month (or portions thereof, expressed in one-tenth increments, against budget line 11) plus actual mission costs (travel and per diem) relating to the services provided (against budget line 16). The $14,000 per work month also covers associated headquarters costs of the United Nations agency, including administrative and other backstopping. Travel and per diem under budget line 16 are paid at the current United Nations rates. Any costs in excess of these rates are to be borne by the United Nations agency or agencies concerned;

(d) SPPD services from national and regional institutions, NGOs and private sector bodies and non-participating United Nations agencies (budget line 21) and national consultants (budget line 17) must be channeled through a participating agency. Provisions must be in line with UNDP policies for obtaining and managing inputs, as described in 6.4. A participating agency is reimbursed for the actual costs only. Any related travel and per diem costs are charged against budget line 16 and paid at United Nations international or national rates, whichever apply;

Additional details on the policies and procedures for the assignment,

(e) Miscellaneous services under component 50 should be kept to a minimum and be in direct support of the SPPD activity (e.g., workshops or seminars to discuss the outcomes of the SPPD activity under budget line 53). The costs of this component may not exceed five per cent of the total SPPD budget. All other miscellaneous costs must be borne by the participating United Nations agency or from other resources, for example from TRAC resources.

release and programming of SPPD resources are provided in the Overview of Support Cost Arrangements, December 1996, available at http://www.undp.org/bprm/drpc/lgumabo2.html



3.5.5 Country office report on the use of SPPD

1. It is essential that the results of SPPD projects be included in the country office’s annual report.

See 7.5 for details of the annual report.

2. In addition, at the end of each year, the country office must prepare a report on the SPPD activities carried out during the year, indicating the project number, title and cost of each activity, as well as the strategic area or areas of support and the results achieved. A sample format for this report is given below. The report is forwarded to the regional bureau, with a copy to the Division for Resources Planning and Coordination.



3.5.6 Sample SPPD Cover Page

UNITED NATIONS DEVELOPMENT PROGRAMME` Project of the Government of Bhutan

SPPD DOCUMENT

Project number:

BHU/98/002/A/08/12 Project title: Development of

Integrated Support to Entrepreneurship

Estimated start date: 01/10/98 Estimated end date: 01/02/99 Project site: Xyz City Government cooperating agent: Ministry of Industry UN agency: UNIDO Other agencies: -

Brief description: On behalf of: Signature Date Name/Title UN agency UNDP

UNDP and cost-sharing inputs UNDP: TRAC $ - Other (SPPD) $ 114,199

Classification information ACC sector and subsector: DCAS sector and subsector: Government sector and subsector: Primary areas of focus/sub-focus: Secondary areas of focus/sub-focus: Primary type of intervention: Secondary type of intervention: Primary target beneficiaries: Secondary target beneficiaries:

Government inputs: (local currency) (in kind) $ (in cash) $

LPAC approval date: Programme officer:



3.5.7 Sample SPPD budget

Project number: BHU/98/002/A/08/37 Project title : Development of Integrated Support to Entrepreneurship Country: Bhutan Revision: A Source of fund: 08 UN agency: UNIDO Status : APPROVED

CMBL

DESCRIPTION

UN

impl. agency

Total 1997 1998

w/m $ w/m $ w/m $

10 PROJECT PERSONNEL 11 International Personnel 11.01 Consultant 1 11.02 Consultant 2 11.99 Subtotal

UNIDO UNIDO

3.4 1.8 5.2

47,600 25,200 72,800

2.1 0.9 3.0

29,400 12,600 42,000

1.3 0.9 2.2

18,200 12,600 30,800

16 Mission costs 16.01 Travel costs, 1 16.02 Travel costs, 2 16.99 Subtotal

UNIDO UNIDO

6,666 3,333 9,999

4,445 2,111 6,556

2,221 1,222 3,443

17 National Professional 17.01 National Professional 1 17.99 Subtotal

UNIDO

10.0 10.0

20,000 20,000

1.0 1.0

2,000 2,000

9.0 9.0

18,000 18,000

19 Component total 15.2 102,799 4.0 50,556 11.2 52,243

20 SUBCONTRACTS 21 Subcontract 21.01 Subcontract 1 21.99 Subtotal

UNIDO UNIDO

0.0 0.0

10,900 10,900

6,700 6,700

4,200 4,200

50 MISCELLANEOUS 53.99 Subtotal

500

250

250

90 TOTAL 99 Project total

15.2

114,199

4.0

57,506

11.2

56,693



3.5.8 Sample of SPPD end-of-year report UNITED NATIONS DEVELOPMENT PROGRAMME IN (Country) SUPPORT FOR POLICY AND PROGRAMME DEVELOPMENT (SPPD) Summary activity report for 1 January - 31 December (year)

Activity number a/

Brief title of activity

Budget (US$ 000)

Strategic area or areas of support b/

Provider of services c/

Description of immediate results, application and follow-up d/

BHU/98/002/A/08/37

Development of integrated support to entrepreneurship

115

UNIDO and a local NGO

Programme design prepared, and strategy accepted at workshops involving local authorities, NGOs and United Nations agencies.

______________________________

a/ According to UNDP numbering system.

b/ Ensure that this date is consistent with the Country Office’s Strategic Results Framework. c/ Specify whether participating agency is providing services directly, with other United Nations entities or through subcontract to NGOs, others, etc.

d/ Indicate follow -up in terms of the development of new programmes.



3.6 Support for technical services

3.6.1 Overview

1. Purpose. Support for technical services (STS) is funded by line 2.3 of the UNDP financial framework, and permits countries to obtain technical support for UNDP programmes and projects from participating United Nations agencies. The support can be for identification, formulation, appraisal and backstopping, as well as for monitoring during implementation, reviews or evaluations. STS funds are for ensuring the highest technical quality of UNDP-supported programmes and projects and for helping UNDP to exercise proper accountability. STS funding may be used for all programmes and projects, irrespective of the management arrangement, but STS aims especially at supporting national execution.

Note: In its decision 98/19, the Executive Board endorsed the merger of SPPD and STS into a single earmarking under line 2.2. of the UNDP financial framework with effect from the year 2001. The principles and procedures for SPPD and STS will largely be retained in the merged facility, the procedures will be updated to reflect the merging of the two lines.

2. STS in regional programmes and projects. STS is also available to support regional programming. The procedures for using STS funds at the regional level are the same as the country-level procedures described in the present section, subject to modifications relating to the way regional programmes and projects are developed and carried out.

3. Participating Parties. Participation in STS is subject to the same rules as SPPD.

See 3.5.1 – 3.5.4 above for information on participating agencies.

3.6.2 Allocation, release and assignment of STS funds

1. These processes are the same as those followed for SPPD. For the purpose of the resource mobilization target table, country offices can estimate their STS resources as four per cent of their TRAC 1 resources.

See 3.5.2 above for information on allocation, release and assignment of SPPD funds.

3.6.3 Management of STS funds

1. The resident representatives and the regional bureaux are responsible for managing their STS funds in the same way as for SPPD funds.

See 3.5.3 for information on managing SPPD funds.

3.6.4 The STS document

1. To use STS funds, the country office prepares an STS document for each programme or project that is to be supported through STS. The document consists of a cover page, a description of services and an STS budget.

UNDP Programming Manual November 1999


2. Cover page. The project number is the same as for the main

programme or project that is to receive STS support. The source of funds code is 09. Most of the usual cover page data will have already been provided in the main PSD or project document and there will be no need to repeat it here.

3. Description of services. This section of the STS document describes the services that the participating United Nations agency agrees to provide and the associated work months, including terms of reference where applicable. The description must specify the timing of services in order to permit monitoring of their delivery. It must also clearly identify those activities, if any, that are to be carried out at the headquarters of the participating United Nations agency and any reporting that is required.

4. The STS budget. The following should be noted:

(a) STS budgets must use lines 61 to 69 as shown in the example below. These lines cover:

• Formulation, line 61 • Appraisal, line 62 • Technical support and implementation, line 63 • Evaluation, line 64 • Mission costs, line 66 • National professionals, line 67 • Subcontracts, line 68

(b) International consultants are recruited from within the agency or from outside. The services of such consultants are quantified as "work months" or portions thereof (expressed in one-tenth increments) and are reimbursed at the standard rate of $9,500 per work month;

(c) STS services from national and regional institutions and consultants (or NGOs, private sector bodies and other non-eligible United Nations entities) are channeled through the participating United Nations agency. UNDP policies on obtaining and managing inputs, as indicated in 6.4, must be followed. Each institution or consultant is budgeted against a separate sub-line under the appropriate budget line;

(d) Mission expenses are charged to line 16 of the related PSD or project budget, or exceptionally to the applicable line of the STS budget. The United Nations agency is reimbursed for the actual costs of services and related travel and per diem at the applicable international or national rates;

(e) Equipment cannot be purchased under STS;



(f) No administrative and operational service costs can be specified in an STS budget.

3.6.5 Approval

1. Since the approved STS activity constitutes an agreement between UNDP and the participating United Nations agency concerned, representatives of both UNDP and the lead United Nations agency sign the cover page. The signature of the Government is not required but the resident representative must consult closely with the government authorities concerned with the activity.

2. The country office sends the signed STS document to the participating United Nations agency and UNDP headquarters. The agency then receives funds from UNDP headquarters. The agency submits a quarterly delivery report to the country office and to UNDP headquarters.

3.6.6 Report on use of STS

1. The participating United Nations agency prepares a report each year outlining the STS services provided to each programme or project in a given country. This report is prepared in tabular form, as in the model below. The agency submits the report to the country office with a copy to the regional bureau at headquarters. This is in addition to any technical reports that may be called for in the description of services.

2. On the basis of the end-of-year delivery report, the country office must revise the STS cover page, budget and, if necessary, the description of services. Other revisions may be prepared from time to time, as necessary.



3.6.7 Sample STS cover page

Government of Colombia UNITED NATIONS DEVELOPMENT PROGRAMME Support for Technical Services at the PSD or Project Level (STS) Project number: COL/97/006/A Project title: Employment Generation in Low-

cost Rural Housing Source of fund: 09 UN agency: ILO Other agencies: New/Revision code: A On behalf of: Signature Date Name/Title UN agency UNDP

UNDP and cost-sharing inputs UNDP: TRAC $ - Other (STS) $ 31,250 TOTAL $ 31,250



3.6.8 Sample STS Budget Project number: COL/97/006 Project title: Employment Generation in Low-cost Rural Housing Country: Colombia Revision: A Source of fund: STS-09 UN agency: ILO-11 Status: APPROVED

Component and Budget line

Description

Total w/m $

1999 w/m $

2000 w/m $

2001 w/m $

60 SUPPORT FOR TECHNICAL SERVICES

61 Formulation 61.01 Consultant 1 0.5 4,750 .05 4,750 61.02 Consultant 2 0.5 4,750 .05 4,750 61.99 Subtotal, formulation 1.0 9,500 1.0 9,500

62 Appraisal 62.99 Subtotal, appraisal 63 Technical support (implementation) 63.01 Consultant 1 1.0 9,500 1.0 9,500 63.99 Subtotal, technical support 1.0 9,500 1.0 9,500

64 Evaluation 64.01 Consultant 1 0.5 4,750 0.5 4,750 64.99 Subtotal, evaluation 0.5 4,750 0.5 4,750

66 Mission costs 66.9 Subtotal, mission costs 67 National Professionals 67.01 National Professional 1 1.0 1,500 1.0 1,500 67.99 Subtotal, National Professionals 1.0 1,500 1.0 1,500 68 Subcontracts 68.01 Subcontract 1 0.0 6,000 6,000 68.99 Subtotal, subcontracts 0.0 6,000 6,000

69 Component total 3.5 31,250 1.0 9,500 2.0 17,000 0.5 4,750 99 Budget Total 3.5 31,250 1.0 9,500 2.0 17,000 0.5 4,750



3.6.9 STS description of services To be attached to cover page

Description of technical support services by ILO

Intended work months

ILO agrees to provide the following technical monitoring and backstopping services, including:

Formulation inputs - (Field)

Ongoing backstopping, including provision of technical guidance as requested; analysis of technical reports and PPER; and preparation of backstopping reports. (One month in the field by national professional, one month in headquarters by international professional). Subcontract with national institute for local technical backstopping.

1.0 (Int'l)

1.0 (Int’l)

1.0 (Nat’l)

Evaluation mission - (Field) Subcontract with national consulting firm for stakeholder workshop to

formulate programme. NOTE: Funds required for carrying out missions in connection with these services (travel/DSA) have been included in PSD/project budget line 16 of COL/97/006.

0.5 (Int'l)

2.0



3.6.10 STS end-of-year report UNITED NATIONS DEVELOPMENT PROGRAMME IN Colombia SUPPORT FOR TECHNICAL SERVICES (STS) Summary activity report for 1 January to 31 December 1998

Project or programme number and title a/

Services to be provided through

STS

STS budget

(US$ 000)

Provider of services b/

Activities carried out during the reporting period

COL/98/006 - Employment generation

1 w/m international expert services in field

4.75 ILO directly and through a subcontract.

Formulation activities, including organization of stakeholder workshops completed. Detailed work programme prepared.

List and complete for other STS activities during the year

a/ Number and title of main UNDP project or programme; programme refers to a programme support document, following the programme approach. b/ Specify whether participating agency is providing services directly, with other United Nations entities or through subcontract to an NGO, etc.



3.7 Administrative and operational services

3.7.1

Definition

1. Resources under line 1.6 of the UNDP financial framework are used in particular to reimburse participating United Nations agencies for the costs they incur in providing programme or project inputs. The provisions of these inputs are referred to as administrative and operational services (AOS). Such services are distinct from the substantive support that United Nations agencies provide under the SPPD and STS facilities (lines 2.2 and 2.3 of the UNDP financial framework).

Note: In its decision 98/19, the Executive Board endorsed the transfer of the earmarking for implementation services under line 1.6 to the TRAC 1 and 2 earmarkings. This will become effective from the year 2001. AOS will continue as a negotiated

3.7.2 Applicability 1. Line 1.6 resources can be used only for activities funded by TRAC 1

and TRAC 2 resources and line 1.2 resources for regional programme activities; in both cases this is possible only when a participating United Nations agency or a regional commission carries out the activity in question. Line 1.6 resources use source of funds (SOF) code 03.

arrangement with United Nations agencies and as a reporting mechanism. In the meantime, the provisions of this section remain in effect.

2. For all activities financed from sources of funds other than those under TRAC 1 and 2, reimbursement for AOS must be met from the same SOF code as the PSD or project.

See annex 3A for a list of the participating United Nations agencies.

3. Governments, NGOs and UNDP itself are not eligible to receive reimbursement for AOS costs.

4. The level of reimbursement of AOS costs is negotiated among the parties to the programme or project. It may not exceed 10 per cent of the programme or project expenditures incurred by the participating United Nations agency.

For example, in a project funded by TRAC 3, the AOS costs are also charged to TRAC 3, source of funds code 07.

5. The resources under line 1.6 are sufficient to meet AOS costs of about 50 per cent of the activities funded under TRAC 1 and 2. Overall, if more than 50 per cent of TRAC 1 and 2 funds are channeled through United Nations agencies, the remaining AOS needs must be met from TRAC resources. If, on the other hand, more than 50 per cent of TRAC 1 and 2 funding is channeled through governments, unspent AOS funds may become available for additional programming.



3.7.3 Management

See 3.5.2 above on allocation, assignment and release of SPPD.

1. The Division for Resources Planning and Coordination allocates AOS funds to the regional bureaux using the same procedures as for SPPD and STS funds. In turn, the bureau determines the country-level assignment taking into account the programme needs.

Additional details on the policies and procedures for AOS resources are provided in the Overview of Support Cost Arrangements, Dec.

2. The management of AOS resources is decentralized to the UNDP resident representative or, in the case of regional programmes, to the headquarters bureau. Either the resident representative or the regional bureau establishes systems to ensure that the AOS resources are fully used.

1996, available at http://www.undp.org/bprm/drpc/lgumabo2.html

3. The provision of AOS funds is shown in the PSD or project budget, as set out in 5.2.6; it is updated with every revision of the PSD or project budget.

3.8 Development support services The present section provides policies and procedures for

3.8.1 Definition and purpose Development Support Services and supersedes the

1. Development Support Services (DSS) is a funding arrangement, introduced by the Governing Council in its decision 89/20, that enables resident representatives to obtain independent short-term expert advice nationally or regionally.

document “Guidelines on the Implementation of the Development Support Services Concept.”

2. Funds for DSS are provided in line 3.1 of the UNDP financial framework.

3. DSS activities must fall under the following categories:

(a) Substantive advice in programme priority areas;

For information on the programme approach, see 4.1 para.2.

(b) Substantive inputs relating to the development of country cooperation frameworks;

(c) Development of sector or thematic programming, for example, the programme approach;

(d) Development of programme initiatives relating to global themes, such as the environment, gender and human rights.



3.8.2 Allocating DSS funds

1. Country offices receive DSS funds in the biennial budget. The amounts allocated depend upon the resources available and upon previous use of DSS funds. The following should be noted:

(a) The UNDP Office of Budget in BOM allocates DSS funds equitably among country offices. BOM/Budget releases DSS funds in two stages. First, it makes allocations to all country offices at the beginning of the calendar year. Second, it releases additional funds on a first-come, first-served basis, using the criteria described in 3.8.3 below;

(b) The resident representative prepares a DSS end-of-year report and uses this to inform the government of the DSS provided. DSS resources are not included in the calculation of the target for the government’s contribution to local office costs;

(c) After the initial allocations, resident representatives may access the remaining DSS funds. To request an additional allocation, a resident representative must submit to BOM/Budget, through the regional bureau, evidence of full and proper commitment of the initial allocation, and of ongoing disbursements against this initial allocation, as well as an explanation of how the additional allocation will be used.

3.8.3 Use of DSS funds

1. DSS funds are used as follows:

(a) DSS funds can be used only for substantive advice on programme matters in support of the CCF and not for administrative expenditures or other inputs such as equipment;

(b) DSS funds are provided through the country office budget and must be used in accordance with the same procedures as for other items in the biennial budget allocated to a country office. DSS resources are indicated under allotment line 810. Expenditures for consultant fees must be recorded against line 811 and expenditures for consultant travel against line 812.

3.8.4 Recruitment of consultants

1. Resident representatives must arrange the recruitment of DSS consultants in accordance with the UNDP Special Service Agreement (SSA) guidelines and with the following specifications:

See the SSA Guidelines and the UNDP Personnel Manual for more information.

(a) DSS consultants must be short-term only;



(b) DSS consultants are normally nationals of the country although consultants from other developing countries may also be used. There must be special justification if international consultants are used instead.

3.8.5 Monitoring, reporting and evaluation

1. Consistent with UNDP policies on monitoring and evaluation, resident representatives must report annually on DSS activities to BOM/Budget with a copy to the regional bureau. BOM/Budget reviews these reports and submits a summary to the Executive Board.

2. Resident representatives also use the DSS end-of-year report for reporting to headquarters. Alternative formats for reporting are acceptable, however, provided that all the required information is included in a clear and concise manner. Where an international consultant has been used, resident representatives must include a summary explanation of why such a consultant has been employed.

See 3.8.4 above for information on recruitment.



3.8.6 DSS end-of-year report

UNITED NATIONS DEVELOPMENT PROGRAMME IN (Country) DEVELOPMENT SUPPORT SERVICES (DSS)

Summary Activity Report for 1 January – 31 December (year) (1)

Categorya/

(2) Brief Title of

Activityb/

(3) Expenditure

c/

(4) Strategic Area of

Supportd/

(5) Source of

Consultante/

(6) Descriptionf/

(7) Ratingg/

_________________________

a/ Choose one DSS category: A: substantive advice in areas of priority concern to the Government; B: substantive inputs relating to the development of the country cooperation frameworks; C: development of section or thematic programming ( e.g., the programme approach); D: development of programme initiatives relating to global themes, such as environment, women in development, NGOs

b/ Titles should reflect the objective of the activity

c/ State expenditure in US dollars

d/ Identify the applicable UNDP goal, sub-goal and strategic area of support (SAS) - see 1.3.2

e/ Specify whether the consultant is A: National; B: International

f/ Briefly describe the results of the consultancy, the application of those results, and how the improved capacity of the country office will be sustained because of the consultancy. The information should be sufficient to enable the Administrator to report on the type of services obtained, major outputs, and how these were used. For each year, describe at least one of the most successful consultancies in more detail on a separate sheet of paper. In particular, please focus on the impact achieved and the utility of DSS as a separate source of financing.

g/ Please rate the success of the consultancy in achieving its objectives on a scale of 1 (little or no success) to 5 (high success)



3.9 Technical cooperation among developing countries

3.9.1 Definition and purpose

1. Line 1.5 of the UNDP financial framework allocates resources for technical cooperation among developing countries (TCDC). UNDP supports TCDC as a modality for expanding on and sharing the capacities and experiences of developing countries in the pursuit of sustainable human development.

2. Line 1.5 resources are managed by the Special Unit for TCDC (SU/TCDC) and are used in line with the TCDC cooperation framework, described in 3.9.2 below. Funding for TCDC activities can also come from other UNDP regular resources and from co-financing arrangements with governments, multilateral and bilateral donors, and financial institutions, and other organizations of the United Nations systems as well as with the private sector and non-governmental entities.

3. In addition, the Trust Fund for South-South Cooperation, established by the Administrator, provides additional financial resources in support of TCDC. Activities financed by this trust fund must be in line with the TCDC cooperation framework.

For information on how to access resources from the trust fund, contact the Special Unit for TCDC.

3.9.2 The TCDC framework

1. Approximately every three years, SU/TCDC prepares the TCDC cooperation framework, which includes elements similar to those of a country or regional cooperation framework. In addition, it gives details of specific interventions and their expected results.

2. Proposed TCDC cooperation frameworks are reviewed by OG and approved by the Executive Board.

3. The SU/TCDC, in collaboration with the Evaluation Office, organizes independent and in-depth mid-term reviews to assess results in relation to stated strategies and objectives. SU/TCDC reports to OG on the results of the reviews.

3.9.3 Criteria and categories

1. UNDP supports TCDC activities that are likely to have a significant development impact on a large number of developing countries. The activities should enable the countries to address critical development challenges and they should have a multiplier effect.


Chapter 3: RESOURCES MANAGED BY UNDP Page39

2. The TCDC cooperation framework for 1997-1999 envisages UNDP

support for activities within the following categories:

(a) Human resources development with emphasis on management and technical training;

(b) Technology transfer and adaptation;

(c) Institutional capacity-building in priority areas for developing countries, such as poverty eradication, the environment, production and employment, trade, investment, and macroeconomic policy coordination;

This includes the TCDC

(d) Information support and networking.

information referral system (INRES)

3.9.4 Procedures for project funding

1. To qualify for funding under line 1.5, proposed projects must meet the following conditions:

(a) They must emanate from governments, non-governmental institutions, or private sector entities of developing countries;

(b) They must facilitate the exchange of experience, expertise and technology or the sharing of facilities between two or more developing countries;

(c) They must be funded mainly by the participating developing countries;

(d) They must be of strategic importance and, ideally, have the potential to produce a significant development impact on a large number of developing countries in the priority categories of intervention.

2. The entity requesting TCDC support prepares a proposal, using the standard UNDP project document format, as provided in 5.1.2. The cover page and budget must indicate code 14 as the source of funds code. SU/TCDC or the country office provides guidance on eligibility criteria and the format to be followed.

3. All project documents must contain qualitative and quantitative performance indicators to facilitate monitoring, review and evaluation. Performance indicators to be used include the extent of the contribution to TCDC; capacity enhancement for the management of TCDC; the catalytic and multiplier effect; specific skills transfer; and overall development impact. The project document must specify the national, regional, or interregional institution that will manage the project.

See 6.0 for information on UNDP policies on managing programmes and projects.


Chapter 3: RESOURCES MANAGED BY UNDP Page40

3.9.5 Appraisal

1. The government or other body making the proposal submits the draft project document to the UNDP country office in the country concerned, or directly to the SU/TCDC with a copy to the country office. The SU/TCDC or the country office screens the draft to ensure that it conforms to TCDC criteria.

2. SU/TCDC arranges for a meeting of the Programme Advisory Committee at headquarters to review draft proposals, with the participation of the regional bureaux concerned and of other relevant units. The PAC recommends the proposals to the Director, SU/TCDC, for final approval.

3.9.6 Monitoring and evaluation

1. The managing agent or the UNDP country office monitors the implementation of TCDC projects according to standard UNDP procedures and any additional arrangements specified in the project document.

See 7.0 for the policies and procedures on monitoring and evaluation.

2. SU/TCDC prepares an annual report on project results for submission to the Administrator through OG. OG/PWG reviews the report and provides comments and recommendations for the Administrator.

3.10 Cost-sharing

3.10.1 Definition 1. When a programme country government or a third-party contributes

resources to UNDP-supported programmes or projects, the arrangement is known as cost-sharing. Cost-sharing forms part of the other resources of UNDP and is fully integrated into the UNDP budget and reported on as part of PSD and project budgets.

3.10.2 Policies on cost-sharing

1. UNDP encourages cost-sharing contributions in support of activities that fall within its sustainable human development mandate. Such contributions must be used in accordance with UNDP programme policies and procedures and Financial Regulations and Rules.

2. A cost-sharing contribution may not be earmarked for any specific budget line, specific inputs or specific component. The contribution is applied to the budget of the programme or project in general.



3. The costs incurred by UNDP in developing and managing cost-

sharing contributions must be fully recovered.

3.10.3 Types of cost-sharing arrangements

1. Government cost-sharing. Government cost-sharing is the modality by which a programme country government allocates its own funds (including the proceeds of a loan from an international financial institution that was channeled through the government) as a contribution to a UNDP-supported programme or project. UNDP administers the contribution on behalf of the government, along with the other PSD or project funds. For these purposes, UNDP defines “the Government” as the central government coordinating authority or another branch of central or local government that has been authorized by the central authority. The signed PSD or project document, together with a schedule of payments and a budget reflecting the cost-sharing elements, constitutes the legal agreement between UNDP and the programme country government. However, at the government’s request, a formal agreement may be made, using the standard cost-sharing agreement (see annex 3B).

2. Third-party cost-sharing. Third-party cost-sharing is the modality by which bilateral donor governments, international financial institutions (IFIs) and private entities contribute funds to individual programmes and projects. In the case of third-party cost-sharing, the standard cost-sharing agreement or an approved, modified agreement is required; this constitutes the legal agreement between UNDP and the donor. In some cases, a PSD or project document is fully funded by the programme country government or a third party. This is known as 100 per cent cost-sharing and is administered in the same manner as other cost-sharing contributions.

A separate agreement is required because the third party does not sign the PSD or project document.

3. CCF cost-sharing. This modality, previously referred to as programme cost-sharing, is used when a programme country government or a third party wishes to contribute resources to an entire CCF without specific reference to individual programmes or projects. These funds are held in a CCF cost-sharing account for subsequent allocation to the budgets of specific programmes and projects at the time they are approved. The government or third party must sign an agreement with UNDP detailing a payment schedule for the contribution.

The management of CCF cost-sharing resources is explained in 3.10.12.

4. Income Generated from Project Activities. This modality is used to record as cost sharing income, all revenues generated from recurrent events during the life of a project (regardless of amount), or a one-time event over $2,500. The project budget should be revised to reflect the aforementioned income under budget line 105 using "IGP" representing Income Generated from Projects under "donor code/description".



3.10.4 Approval authority

See 5.5 for information

1. The resident representative has the authority to sign PSDs, project documents and standard cost-sharing agreements.

on PSD and project document approval procedures.

2. The country office must forward a copy of all agreements promptly to

BRSP/DRM and BOM/OFA/Comptroller’s Division. A copy of the PSD or project document must be forwarded when there is no separate cost-sharing agreement.

3. Country offices must obtain approval from the programme country

government before negotiating a third-party cost-sharing agreement.

3.10.5 Modifications to the standard agreement

1. If the parties wish to alter the standard cost-sharing agreement, the country office must submit the modified text to headquarters for clearance by the regional bureau and by BOM and BRSP/DRM. UNDP has agreed on modified standard agreements with certain donors such as Canada, the Netherlands, the United Kingdom, the United States and UNAIDS. Resident representatives may sign agreements using these modified standard texts without clearance from headquarters. All contributions from the Government of Sweden must be in the form of a Trust Fund Agreement for reporting purposes.

See 3.13 on trust funds below.

3.10.6 Budgeting for cost-sharing

1. The standard UNDP budget procedures apply to cost-sharing arrangements.

2. Since cost-sharing contributions are normally not earmarked for any specific input of the PSD or project budget, the cost-sharing contribution is shown as a lump sum in the budget. Government cost-sharing is recorded on budget line 101. Funds from IFIs are recorded on budget line 102. Other third-party contributions are recorded on budget line 103.

See 5.2 for more information on the PSD and project document budget.

3. The cost-sharing contribution must include a pro-rated share of any AOS costs that are payable, as well as reimbursement for costs incurred by UNDP. The UNDP costs are identified on the country office administrative cost (COA) budget line in the PSD or project budget.

4. The COA cost is often three per cent. The parties may agree on a different rate but the principle of full cost-recovery must be observed. When a cost-sharing agreement is used, Article II.2 of the agreement must specify precisely the COA rate to which the parties have agreed. This procedure is in accordance with the Executive Board directive, contained in decision 98/2, that additional costs to UNDP of managing other resources be fully recovered.

See annex 3B for a model cost-sharing agreement between UNDP and a government. See also 6.3.2 on cost recovery.



5. The unspent balance of the cost-sharing portion of the UNDP

programme or project budget is carried over to the next year. The annual mandatory revision of the project budget must be based on the cost-sharing apportionment exercise, and any unspent portion of the cost-sharing contribution should be transferred to current or future years. All mandatory revisions must be submitted by 10 June each year. In addition, each revision must carry a new revision code.

3.10.7 Cost-sharing apportionment

1. When the PSD or project budget covering the UNDP contribution is prepared or revised, the annual amounts charged to the cost-sharing contribution should bear the same relationship to the annual budget totals (line 99) as the total cost-sharing contribution bears to the budget. For example, if the total budget is $1,000,000 spread evenly over five years ($200,000 per year) and the total cost-sharing contribution is $500,000, then the annual amounts apportioned to cost-sharing are $100,000 each year.

See 5.2.6 for a sample budget.

2. Similarly, if the total AOS payable to a United Nations agency is $50,000, then the amount of AOS chargeable to the cost-sharing contribution is $25,000.

3.10.8 Payment schedules

1. The payments to UNDP under cost-sharing are made in accordance with the payment schedule included in the signed cost-sharing agreement.

2. In the case of government cost-sharing, when the PSD or project document serves as the cost-sharing agreement, a payment schedule must be included in that document.

3. The payment schedule is negotiated between UNDP and the donor. Modifications of payment schedules may be made only in advance of due dates for payment and upon mutual agreement by both parties, so as to meet the needs of the donor and UNDP. Cost-sharing payments are made in accordance with the agreed payment schedule, annually or in lump sums covering more than one year.

4. The resident representative must ensure that payments are received by UNDP in advance of the implementation of the planned activities. If implementation is behind schedule, the payment schedule may be adjusted prior to the due date of the payment, so as to reflect a revised schedule of activities.

See Financial Rules 104.1, 104.12 and 104.13.



3.10.9 Payments and currency

1. Cost-sharing contributions are normally payable in United States dollars by deposit to the UNDP Contributions Account, Account No. 015-002284, Chase Manhattan Bank, United Nations Branch, New York, N.Y. 10017.

2. The deposit must clearly indicate the PSD or project title and number to ensure that contributions are properly recorded.

3. Payment in a currency other than United States dollars requires the

prior approval of Treasury. Contact Treasury for further instructions.

4. The Comptroller’s Division of BOM/OFA processes and records the receipt of donor contributions. Treasury records all contributions received at headquarters and issues a written document acknowledging the receipt of a contribution. If the contribution is deposited into a country office account, the country office must forward an inter-office voucher to the BOM/OFA Comptroller for recording. If the contribution exceeds the country office advance level, the check must be pouched to Treasury for deposit into the UNDP account in New York. In this case, the resident representative is responsible for informing the donor that the check has been deposited.

3.10.10 Unspent cost-sharing contributions 1. The use of contributions unspent because of changes in programme

or project implementation may be subject to negotiation with the contributor. If activities are cancelled, unused funds may either be refunded or reprogrammed after consultation with the contributor and the programme country. A refund or reprogramming can be made only after the resident representative has signed the final budget revision. Treasury authorization is required before refunds of third-party cost-sharing contributions can be made.

3.10.11 Reporting

1. The resident representative must ensure that regular reports are provided to the contributors on the expenditures and results achieved with their contribution. The context and periodicity of the reports must be clearly stated in the agreement. Annual reports are recommended.

Donors attach great importance to receiving accurate and timely reports.

2. The Comptroller’s Division of BOM/OFA produces certified statements of income and expenditures. When the contributor requires such statements, the resident representative is responsible for obtaining them from BOM and submitting them to the contributor on agreed dates.



3.10.12 Managing CCF cost-sharing contributions

1. CCF cost-sharing contributions are managed as follows:

(a) CCF cost-sharing contributions are deposited into UNDP’s bank account as for other cost-sharing contributions (see 3.10.9) with the purpose of the deposit clearly specified: “credit to cost-sharing account.” The Comptroller’s Division of BOM/OFA will record the amounts in the CCF cost-sharing account for the country concerned.

(b) Interest earned on cost-sharing programmes and projects, where

the interest is not being used as a cost recovery mechanism (i.e. programmes and projects with negotiated country office administrative costs), is also transferred to the CCF cost-sharing account. This is done automatically by BOM/OFA/Comptroller’s Division on an annual basis when there is such income.

(c) Residual amounts from completed cost-sharing programmes or

projects, or amounts relating to cancelled activities on cost-sharing programmes or projects can also be transferred to the CCF cost-sharing account of the respective country with the prior agreement of the government.

(d) Amounts are transferred from the CCF cost-sharing account to

the individual programmes or projects at the time of their approval. The transfer is done by advising the Comptroller’s Division of BOM/OFA to effect the transfer from the CCF cost-sharing account to the individual projects and programmes against BL 104.

The prior practice of creating a project CTY-YY-888 in order to utilize the CCF cost-sharing resources and to apportion the CCF cost-sharing expenditure is discontinued.

3.11 Contributions from the private sector

3.11.1 Introduction

1. UNDP can receive contributions from the private sector in the form of untied donations to its regular resources. In practice, however, private sector contributions are almost always in the form of a cost-sharing contribution to a specific PSD or project document.

2. In the case of contributions from private entities, the model

agreement for cost-sharing from the private sector is used in place of the standard third-party cost-sharing agreement. The main difference is that the letter of agreement contains a provision regarding the use of the United Nations or UNDP name and logo.

The model agreement for cost-sharing from the private sector is given in annex 3C.



3.11.2 Definition

1. The private sector is defined as any non-governmental entity. Examples of private sector entities that contribute to programmes and projects are corporations, foundations and non-profit organizations.

3.11.3 Policies

Country offices should bear in mind that

1. UNDP encourages contributions from the private sector in order to broaden policy dialogues, strengthen development activities and increase public awareness of UNDP through the advertising and media resources of the private sector. As with all contributions, the activities must be within the UNDP sustainable human development mandate and fall within an approved country, regional or global cooperation framework.

although the mobilization of private sector resources presents UNDP with many new opportunities, the actual negotiation of agreements with the private sector can entail a significant workload.

2. While corporate relationships are a key factor in generating increased income, it is important to distinguish those relationships that are of mutual benefit to UNDP from those that may not be. The name and reputation of UNDP are key assets to the organization; relationships with any outside entity should result in a strengthening of these assets. It is important to consider carefully every potential relationship in this context.

Private entities are referred to here as corporations since most of the contributions, from the private sector are received from corporations.

3. UNDP Executive Board decision 96/39 requires that the private

sector contributor must be apolitical and support the aims and objectives of UNDP and that the contribution must not jeopardize the universal character of UNDP activities.

4. All policies and procedures applying to cost-sharing contributions, set out in 3.10 above, apply to private sector cost-sharing.

3.11.4 Procedures

For further guidance and to evaluate a company’s added value to UNDP in

1. Screening. At the outset, the country office must carefully screen the private entity to ensure that any agreement will bring mutual benefits. The office will need to inform itself in particular of the full range of a corporation’s products, its ownership, its employment practices and its policies on gender and the environment. If in any doubt, the country office should seek help from DRM with the screening.

terms of its contribution to helping UNDP to meet its mandate, country offices should use the “Guidelines and Procedures for Mobilization of Resources from the Private Sector. “



2. The PSD or project document. The country office arranges for the

PSD or project document to be formulated in accordance with standard procedures. As an annex, and in place of the standard cost-sharing agreement, the country office must use the model agreement for cost-sharing contributions from the private sector. The model agreement is a standard cost-sharing agreement but with additional provisions on the use of the United Nations or UNDP name and emblem in the private entity’s marketing and publicity; and on the settlement of disputes. The model agreement is given in annex 3C.

See also to the appraisal procedures given in 5.4.

3.11.5 Appraisal and approval

1. Appraisal. The PSD or project document must be reviewed by a local PAC following the standard procedures. The PAC minutes must show that UNDP policies and procedures on private sector contributions have been duly considered.

2. Approval by the resident representative. Upon completion of the appraisal, the resident representative is authorized to sign a cost-sharing agreement with a private entity under the same conditions as for any other cost-sharing agreement, provided that:

(a) The agreement conforms to the model in annex 3C.

(b) The agreement has implications for only one country, the country for which a resident representative has responsibility;

(c) The relationship entered into is with a nationally-based entity or with a national branch of a multinational entity;

(d) The agreement is time-bound and has a defined starting and

ending date;

To make those judgements, the resident

(e) UNDP will, in the best judgement of the resident representative, benefit from a relationship with the private entity in question;

representative uses the selection criteria described in the “Guidelines and

(f) The private entity is, in the best judgement of the resident representative, deemed suitable for collaboration with UNDP.

Procedures for Mobilization of Resources from the Private Sector.”

3. Approval by headquarters. Country offices must obtain headquarters clearance of an agreement with a private entity if:

(a) The agreement pertains to a trust fund arrangement;

(b) The agreement does not conform to the model agreement, as given in annex 3C;

(c) The agreement has implications for two or more countries;



(d) The agreement is to be entered into with the headquarters of a

multinational entity;

(e) The agreement includes marketing and public relations activities on the part of the private entity;

(f) The agreement does not fulfil any one of the conditions listed in 3.11.5, para. 2 above.

4. Procedures for headquarters approval. The following procedures apply:

(a) The resident representative sends agreements that require headquarters approval to the Division for Resources Mobilization, Bureau for Resources and External Affairs (BRSP/DRM) and the regional bureau. BRSP/DRM then forwards the agreement to the Private Sector Review Group (PSRG) for clearance;

(b) Clearances and comments are communicated electronically;

(c) The PSRG must provide a country office or bureau with clearance or comments on an agreement no more than five days after receipt of the proposed agreement by BRSP/DRM unless a message indicating otherwise is sent to the country office or regional bureau by BRSP /DRM.

3.11.6 Marketing and publicity

1. The PSRG examines any request to modify Article VIII of the model

agreement, which deals with the use of the name and logo of UNDP. The General Assembly directions will also guide the PSRG on the use of the name, emblem and official seal of the United Nations. In particular, UNDP will not agree to any provision that implies endorsement of a corporation or its products or that prevents UNDP from making similar arrangements with other entities in the same business.

This is the non-exclusivity principle.

3.11.7 Reporting 1. Resident representatives must send all signed Private Sector

Financing Agreements to the BRSP/DRM and to the BOM/OFA/Comptroller’s Division, for the purposes of recording reporting to the Executive Board.



3.12 Government cash counterpart contribution

3.12.1 Definition 1. A government cash counterpart contribution (GCCC) is a cash

payment to UNDP by a government in local currency for a UNDP-supported programme or project. Such funds are used by UNDP for

GCCC is being phased out. Country offices are not to approve new GCCC budgets after 31

local expenditures in local currency, such as local personnel, subcontracts, services, and material or equipment needed in carrying out a specific programme or project. GCCC funds are used to cover costs incurred inside the programme country.

December 2000. See memorandum from the Associate Administrator dated 26 October 2000. http://www.undp.org.bprm/drpc/gccc.html

3.12.2 Procedures

1. The GCCC arrangements, including a work plan, payment schedule, and a separate budget in local currency, must be attached to the PSD or project document. United Nations agencies are entitled to 3.5 per cent of the GCCC budget as reimbursement for managing the funds.

See 5.2 for information on preparing a budget.

2. To make a GCCC contribution, the programme country government deposits cash payments in local currency into the resident representative’s local currency account in accordance with the payment schedule and instructions from BOM/OFA/Treasury. BOM/OFA/Controller’s Division then records the GCCC deposit in local currency. If the expected GCCC is not forthcoming, the Administrator may either modify the value of the contribution, terminate the GCCC agreement, or charge the relevant costs to the programme country’s TRAC resources.

3. The country office is responsible for the apportionment of expenditures.

4. If the management of GCCC involves the UNDP country office in

significant additional work, the cost-recovery procedures set out in 6.3.2 apply.

3.13 Trust funds

3.13.1 Definition

1. A trust fund is a mechanism established to receive contributions from one or several governmental or non-governmental donors, including private corporations and individuals, in support of a specific theme, project, country or region.

2. Trust funds are accounted for and reported upon separately in the financial statements of UNDP. The Global Environment Facility, the Montreal Protocol and Capacity 21 are examples of trust funds.



3. The Executive Board has authorized the Administrator to establish

trust funds on its behalf.

4. The GEF was established in 1991. UNDP, along with the World Bank and the United Nations Environment Programme, was one of the three implementing agencies for the Global Environment Facility. The GEF is a mechanism for international cooperation that responds to global conventions and assists in meeting the incremental costs of measures to achieve global environmental benefits.

For further info on GEF, refer to http://www.gefweb.org/ For GEF Operational Strategy, refer to http://w w w .gefweb.org/public/opstrat/ops.htm

3.13.2 Policies on trust funds

1. The establishment of a trust fund must be consistent with the aims of UNDP and compatible with the relevant country, regional or global cooperation framework.

2. Standard UNDP policies and procedures apply for formulating, appraising and implementing activities under trust funds.

3. UNDP financial regulations and rules apply to all aspects of the trust fund’s management, reporting, financial management and accounting.

3.13.3 Types of trust funds

1. Open trust funds are trust funds established unilaterally by UNDP and signed by the Administrator. Any donor may contribute to an open trust fund under a standard trust fund agreement. The terms of reference of the trust fund agreement outline the purpose, objectives and administration of the open trust fund. In addition to making general contributions to the open trust fund, defined only within its overall terms of reference, donors may also earmark contributions for more specific use within the Trust Fund.

2. Sub-trust funds are trust funds established within an open trust

fund in cases where a donor not only earmarks contributions for specific purposes but also requires specific financial reporting. Sub-trust funds operate under the terms of reference of the open trust fund. For reasons of administrative efficiency, it is not generally recommended that a large number of sub-trust funds be established.

3. Closed trust funds are trust funds supported by a single donor.

They have the same terms of reference as the open trust funds. If additional donors wish to contribute to a closed trust fund, the fund may be converted to an open trust fund provided that all the parties agree to the conversion.



3.13.4 Trust fund agreement

A sample agreement is given in the

1. The trust fund agreement is the legal instrument required for all UNDP trust funds. The agreement states the terms and conditions under which the donor contributes funds to UNDP and the specific purpose for which the funds are to be utilized. It also details financial and administrative arrangements for handling the contribution, states the types of activities for which it will be used, and assigns the trust fund manager. The specifics of the agreement are given in the terms of reference, which form part of the agreement.

Programming Manual Reference Centre on the UNDP Intranet. (http://intra.undp.org) Guidance on establishing a trust fund, including modification and clearance procedures, is given in Co-financing Modalities: Questions and Answers, located on the UNDP

2. The standard text of the agreement must be followed. Requests to modify the agreement, to accommodate a donor’s specific requirements, for example, must be cleared by BRSP/DRM and BOM.

Intranet.

3. Resident representatives and headquarters bureaux may prepare a trust fund agreement. They negotiate the terms of the agreement with the donor and send the proposed agreement to BRSP/DRM for review and clearances.

3.13.5 Approval authority

1. The Administrator has delegated to the Associate Administrator the authority to sign all trust fund agreements.

2. After clearance by BOM and the regional bureau or other responsible headquarters unit, BRSP/DRM submits the agreement for the signature of the Associate Administrator, or requests the Associate Administrator to delegate the signatory authority to the resident representative or head of the relevant headquarters unit.

The clearance form is attached to the “Guidelines for Trust Fund Managers” that can be found in the Programming Manual Reference Center on the UNDP Intranet (http://intra.undp.org).

3. If the agreement is signed at headquarters, BRSP/DRM sends a copy of the signed agreement to the country office, the regional bureau and BOM/OFA/Comptroller’s Division. If a resident representative signs the agreement, he/she sends a copy to BRSP/DRM.

3.13.6 Implementation

1. The Administrator or the delegated authority designates the trust fund manager upon signature of a trust fund agreement.

2. Trust fund managers are responsible for ensuring that:

(a) The conditions stated in the trust fund agreement are met;

(b) Reports are prepared and submitted to the donors according to the approved schedule stated in the trust fund agreement;



(c) The activities of the fund are developed and carried out in

accordance with UNDP programming policies and procedures;

(d) Financial management and reporting is in accordance with UNDP financial regulations and rules;

See the “Guidelines for Trust Fund Managers” issued on 7 January 1999 in the

(e) Information on the trust fund is made available for the Administrator’s annual report on trust funds to the Executive Board.

Programming Manual Reference Center on the UNDP Intranet (http://intra.undp.org).

3.13.7 Coding trust fund

Upon signature of the agreement, each trust fund is given a six-figure

code assigned by the Comptroller’s Division. The trust fund manager is indicated by a letter identifier (A to Z) used in the sixth position of the project number, for example, the “B” in RWA/86/B05 stands for Regional Bureau for Africa.

3.13.8 Accounting

1. Payment Schedule. Trust fund contributions are made in accordance with the payment schedule stated in the trust fund agreement. The payment schedule is made on the understanding that funds must be received in the trust fund account before the related activities can be carried out. Modifications of payment schedules may be made only in advance of the due payment dates and upon mutual agreement by both parties. In cases where country trust fund expenditures exceed received trust fund contributions, the Administrator may modify or terminate the activity or may reduce TRAC resources by the amount spent in excess of such contributions.

2. Accounts Receivable. Trust fund contributions are normally payable in United States dollars by deposit to the UNDP Contributions Account, Account No. 015-002284, Chase Manhattan Bank, United Nations Branch, New York, N.Y. 10017. The deposit must clearly indicate the trust fund title and number to ensure that contributions are properly recorded. Payments in other convertible currency need prior BOM/OFA/Treasury approval and must be made to bank accounts designated by BOM/OFA/Treasury for such currency.



3. UNDP administrative costs and administrative and operational

services. Trust fund resources are separately accounted for by UNDP. The additional cost of administering a trust fund, referred to as UNDP administrative cost, is recovered by UNDP by directly charging to the trust fund contribution. However, this amount is not included in the trust fund programme or project budget. The amount to be charged is defined as a percentage of the contribution and is specified in the trust fund terms of reference, or based upon negotiation in cases of agreements with donors. The normal percentage is three per cent. A reimbursement rate higher than three per cent requires approval from BRSP/DRM. Administrative and operational services (AOS) negotiated with a United Nations agency are also to be charged to the contribution. The level of reimbursement of AOS is up to 10 per cent. The maximum percentage to be charged to the trust fund contribution for both administrative costs and AOS costs combined is normally 10 per cent. Any such costs must be stated explicitly in the agreement.

See 5.2.3 for information on budgeting for AOS.

3.13.9 Reporting

1. UNDP reports to donors regularly on the use of their contributions. Reports to donors must describe: (a) the progress of programme activities, planned activities and any problems encountered, and (b) the financial status, including current and future income and expenditures. Report schedules must be stated in the trust fund agreement.

Reports are usually submitted annually or every six months.

3.14 UNDP-administered funds

1. The Secretary-General, in response to resolutions of the Security Council or General Assembly, may request the UNDP Administrator to manage certain funds. These funds have diverse purposes within the UNDP sustainable human development mandate. Examples of UNDP-administered funds are the United Nations Volunteers, the United Nations Capital Development Fund, the United Nations Revolving Fund for Natural Resources Exploration, the United Nations Development Fund for Women and the United Nations Programme to Combat Desertification and Drought (UNSO).

2. UNDP-administered funds manage their own resources and operate under procedures described in the Financial Regulations and Rules and in their respective operational guidelines. Contributions to the administered funds may be provided as regular resources for their general programme activities, or as other resources for specific programme activities. The Administrator reports on such funds to the Executive Board.

For programming guidance on UNDP- administered funds, see the corresponding manuals.

3. The Resource Mobilization Table attached to the CCF must include targets for funding from UNDP-administered funds.

See annex 2E for a sample RMT table.



3.15 Parallel financing

1. Parallel financing describes situations where donors join with UNDP in a common programme but administer their resources separately. The resources are not entered in UNDP accounts but are managed by the respective donors themselves.

Guidance on parallel financing arrangements is found in the document “Co-Financing Modalities: Questions & Answers” on the UNDP Intranet.

2. UNDP may advise and collaborate with other donors in a common programme or project. When supporting national programmes, UNDP prefers its funds be managed jointly with those of other donors through PSDs and cost-sharing agreements. Where cost-sharing is not possible, UNDP recommends that the donors’ respective project documents stipulate how coordination will take place. UNDP supports common reporting, monitoring and evaluation arrangements.



ANNEX 3A Participants in the support cost facilities: Agencies in this list may be designated to manage programmes and projects and participate in one or more of the support cost facilities.

Formerly referred to as the five large agencies: (SPPD, STS & AOS) Food and Agriculture Organization of the United Nations (FAO) International Labour Organization (ILO) Department for Economic and Social Affairs (DESA) United Nations Educational, Scienti fic and Cultural Organization (UNESCO) United Nations Industrial Development Organization (UNIDO)

Formerly referred to as the smaller agencies: (SPPD, STS, AOS) International Atomic Energy Agency (IAEA) International Civil Aviation Organization (ICAO) International Maritime Organization (IMO) International Organization for Migration (IOM) International Telecommunication Union (ITU) International Trade Centre (ITC) United Nations Centre for Human Settlements (UNCHS) United Nations Conference on Trade and Development (UNCTAD)

United Nations Development Fund for Women (UNIFEM) United Nations Institute for Training and Research (UNITAR) Universal Postal Union (UPU) World Health Organization (WHO) World Intellectual Property Organization (WIPO) World Meteorological Organization (WMO) World Tourism Organization (WTO)

Regional commissions: (SPPD, STS & AOS) Economic Commission for Africa (ECA) Economic and Social Commission for Asia and the Pacific (ESCAP) Economic Commission for Latin America and the Caribbean (ECLAC) Economic and Social Commission for Western Asia (ECSWA) Economic Commission for Europe (ECE)

Other participants: (AOS only) United Nations Office for Project Services (UNOPS) The World Bank Group International Finance Corporation (IFC) International Monetary Fund (IMF)

Regional Development Banks: African Development Bank; Asian Development Bank; Arab Fund for Economic and Social Development; Caribbean Development Bank; European Bank for Reconstruction and Development; Inter-American Development Bank; Islamic Development Bank.



Annex 3B

THIRD-PARTY COST-SHARING AGREEMENT BETWEEN THE [DONOR] (THE DONOR) AND

THE UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) WHEREAS the Donor hereby agrees to contribute funds to UNDP on a cost-sharing basis for the implementation of [project title] in [programme country].1 WHEREAS UNDP is prepared to receive and administer the contribution for the implementation of the programme/project, WHEREAS the Government of (programme country) has been duly informed of the contribution of the Donor to the programme/project, WHEREAS UNDP shall designate an Executing Agency for the implementation of the Programme/project (the Executing Agency), NOW THEREFORE, UNDP and the Donor hereby agree as follows:

Article I. The Contribution 1. The Donor shall, in accordance with the schedule of payments set out below, contribute to UNDP the amount of (amount in dollars). The contribution shall be deposited in the [bank and bank account].

Schedule of payments Amount

[due date] [specify amount] [The following paragraph should be included only in the event that the contribution is not in US dollars: refer to chapters 3. 9.10 of the Programme manual] 2. The value of the payment, if made in a currency other than United States dollars, shall be determined by applying the United Nations operational rate of exchange in effect on the date of payment. Should there be a change in the United Nations operational rate of exchange prior to the full utilization by the UNDP of the payment, the value of the balance of funds still held at that time will be adjusted accordingly. If, in such a case, a loss in the value of the balance of funds is recorded, UNDP shall inform the Donor with a view to determining whether any further financing could be provided by the Donor. Should such further financing not be available, the assistance to be provided to the programme/project may be reduced, suspended or terminated by UNDP. 3. The above schedule of payments takes into account the requirement that the payments shall be made in advance of the implementation of planned activities. It may be amended to be consistent with the progress of programme/project delivery.

1 The programme/project is described in the programme support document and/or programme/project document [project no. and title]. The PSD/project document is formally annexed to this agreement.



4. UNDP shall receive and administer the payment in accordance with the regulations, rules and directives of UNDP. 5. All financial accounts and statements shall be expressed in United States dollars.

Article II. Utilization of the Contribution 1. The implementation of the responsibilities of UNDP and of the Executing Agency pursuant to this Agreement and the programme/project document shall be dependent on receipt by UNDP of the contribution in accordance with the schedule of payment as set out in Article I, paragraph 1, above. 2. If unforeseen increases in expenditures or commitments are expected or realized (whether owing to inflationary factors, fluctuation in exchange rates or unforeseen contingencies), UNDP shall submit to the Donor on a timely basis a supplementary estimate showing the further financing that will be necessary. The Donor shall use its best endeavours to obtain the additional funds required. 3. If the payments referred to in Article I, paragraph 1, above are not received in accordance with the payment schedule, or if the additional financing required in accordance with paragraph 2 above is not forthcoming from the Donor or other sources, the assistance to be provided to the programme/project under this Agreement may be reduced, suspended or terminated by UNDP. 4. Any interest income attributable to the contribution shall be credited to UNDP Account and shall be utilized in accordance with established UNDP procedures.

Article III. Administration and reporting 1. Programme/project management and expenditures shall be governed by the regulations, rules and directives of UNDP and, where applicable, the regulations, rules and directives of the Executing Agency. 2. UNDP headquarters and country office shall provide to the Donor all or parts of the following reports prepared in accordance with UNDP accounting and reporting procedures. 2.1 For Agreements of one year or less:

(a) From the country office (or relevant unit at headquarters in the case of regional and global projects) within six months after the date of completion or termination of the Agreement, a final report summarizing programme/project activities and impact of activities as well as provisional financial data;

(b) From UNDP Bureau of Management/Comptroller’s Division, an annual certified financial statement as of 31 December every year to be submitted no later than 30 June of the following year;

(c) From UNDP Bureau of Management/Comptroller’s Division on completion of the programme/project, a certified financial statement to be submitted no later than 30 June of the year following the financial closing of the project.



2.2 For Agreements of more than one year:

(a) From the country office (or relevant unit at headquarters in the case of regional and global projects) every year, the status of programme/project progress for the duration of the Agreement, as well as the latest available approved budget. (b) From UNDP Bureau of Management/Comptroller’s Division, an annual certified financial statement as of 31 December every year to be submitted no later than 30 June of the following year.

(c) From the country office (or relevant unit at headquarters in the case of regional and global projects) within six months after the date of completion or termination of the Agreement, a final report summarizing programme/project activities and impact of activities as well as provisional financial data.

(d) From UNDP Bureau of Management/Comptroller’s Division, on completion of the programme/project, a certified financial statement to be submitted no later than 30 June of the year following the financial closing of the project.

3. If special circumstances so warrant, UNDP may provide more frequent reporting at the expense of the Donor. The specific nature and frequency of this reporting shall be specified in an annex of the Agreement.

Article IV. Administrative and support services 1. In accordance with the decisions and directives of UNDP's Executive Board, the contribution shall be charged:

(a) (3-5 per cent ) for the additional cost incurred by UNDP in administering the contribution; (b) (X per cent ) for administrative and operational services provided by the Executing and/or Implementing Agency(ies); and/or (c) (If necessary)UNDP support services provided to the Executing and/or Implementing Agency(ies).

2. The aggregate of the amounts budgeted for the programme/project, together with the estimated costs of reimbursement of related support services, shall not exceed the total resources available to the programme/project under this Agreement as well as funds which may be available to the programme/project for programme/project costs and for support costs under other sources of financing.

Article V. Equipment Ownership of equipment, supplies and other properties financed from the contribution shall vest in UNDP. Matters relating to the transfer of ownership by UNDP shall be determined in accordance with the relevant policies and procedures of UNDP.

Article VI. Auditing The contribution shall be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of UNDP. Should an Audit Report of the Board of Auditors of UNDP to its governing body contain observations relevant to the contributions, such information shall be made available to the Donor.



Article VII. Completion of the Agreement

1. UNDP shall notify the Donor when all activities relating to the programme/project have been completed. 2. Notwithstanding the completion of the programme/project, UNDP shall continue to hold unutilized payments until all commitments and liabilities incurred in the implementation of the programme/project have been satisfied and programme/project activities brought to an orderly conclusion. 3. If the unutilized payments prove insufficient to meet such commitments and liabilities, UNDP shall notify the Donor and consult with the Donor on the manner in which such commitments and liabilities may be satisfied. 4. Any payments that remain unexpended after such commitments and liabilities have been satisfied shall be disposed of by UNDP in consultation with the Donor.

Article VIII. Termination of the Agreement 1. After consultations have taken place between the Donor, UNDP and the programme country Government, and provided that the payments already received are, together with other funds available to the programme/project, sufficient to meet all commitments and liabilities incurred in the implementation of the programme/project, this Agreement may be terminated by UNDP or by the Donor. The Agreement shall cease to be in force 30 (thirty) days after either of the Parties have given notice in writing to the other Party of its decision to terminate the Agreement. 2. Notwithstanding termination of this Agreement, UNDP shall continue to hold unutilized payments and liabilities incurred in implementation of the programme/project up to the date of termination have been satisfied and programme/project activities brought to an orderly conclusion. 3. Any payments that remain unexpended after such commitments and liabilities have been satisfied shall be disposed of by UNDP in consultation with the Donor.

Article IX. Amendment of the Agreement The Agreement may be amended through an exchange of letters between the Donor and UNDP. The letters exchanged to this effect shall become an integral part of the Agreement.

Article X. Entry Into Force This Agreement shall enter into force upon signature and deposit by the Donor of the first contribution-payment to be made in accordance with the schedule of payments set out in Article I, paragraph 1 of this Agreement and the signature of the PSD/project document by the concerned parties. IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed the present Agreement in the English language in two copies. For the Donor: For the United Nations Development Programme: (Name) (Name) (Title) (Title) (Date) (Date)



ANNEX 3C

COST-SHARING AGREEMENT BETWEEN THE UNITED NATIONS DEVELOPMENT PROGRAMME

AND (name of contributor) WHEREAS the United Nations Development Programme ("UNDP") and [name of company] (hereinafter referred to as “the Donor”) have agreed to co-operate in the implementation of a project ....... ("the Project"), which Project is summarized in Attachment A to this Agreement and is more fully described in the Project Document YY/00/000 ("project title”) (Attachment A to this agreement). WHEREAS the Donor has informed UNDP of its willingness to contribute funds ("the contribution") to UNDP on a cost-sharing basis towards implementation of the Project; WHEREAS UNDP is prepared to receive and administer the contribution for the implementation of the Project; WHEREAS the Government of the (name of recipient country) has been duly informed of the contribution of the Donor to the Project; WHEREAS UNDP shall designate an institution to manage Project ("the executing agency"); NOW THEREFORE, UNDP and the Donor hereby agree as follows:

Article I 1. The Donor shall, in the manner referred to in paragraph 2 of this Article, place at the disposal of UNDP a contribution in the amount of United States dollars .............. 2. The Donor shall, in accordance with the schedule of payments set out below, deposit the contribution in UNDP Contributions Account: #015-002284 with the Chase Manhattan Bank, United Nations Branch, New York, NY 10017: Date payment due Amount (US$) (a) (b) (c) The above schedule of payments takes into account the requirement that contributions shall be paid in advance of the implementation of planned activities. It may be amended to be consistent with the progress of project delivery.



3. All financial accounts and statements shall be expressed in United States dollars. 4. UNDP may agree to accept payments in a currency other than United States dollars provided such currency is fully convertible or readily usable by UNDP and subject to the provisions of paragraph 5 below. Any change in the currency of payments shall be made only in agreement with UNDP. 5. The value of the 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. Should there be a change in the United Nations operational rate of exchange prior to the full utilization by UNDP of the payment, the value of the balance of funds still held at that time will be adjusted accordingly. If, in such a case, a loss in the value of the balance of funds is recorded, UNDP shall inform the Donor with a view to determining whether any further financing could be provided by the Donor. Should such further financing not be available, the assistance to be provided to the Project may be reduced, suspended or terminated by UNDP.

Article II 1. The contribution shall be utilized by UNDP for the purpose of meeting the costs of the Project as set out in the Project Document as well as the costs of support services relating thereto as specified in the following paragraph. Any additional costs of the Project which are not to be met from the contribution, as well as the source of their financing, are also set out in the Project Document. 2. Contributions will be charged, in accordance with decisions and directives of the UNDP Executive Board, for reimbursement of support services provided by the executing agency, the UNDP country office, and for any other support services required. 3. Any interest income attributable to the contribution shall be credited to the UNDP Account and shall be utilized in accordance with established UNDP procedures.

Article III 1. The contribution shall be administered by UNDP in accordance with UNDP regulations, rules and directives, applying its normal procedures for the management of its projects. 2. Project management and expenditures shall be governed by the regulations, rules and directives of UNDP and, where applicable, the regulations, rules and directives of the executing agency.

Article IV 1. The implementation of the responsibilities of UNDP and of the executing agency pursuant to this Agreement and the project document shall be dependent on receipt by UNDP of the contribution in accordance with the schedule of payment as set out in Article I, paragraph 2 above. 2. The aggregate of the amounts budgeted for the Project, together with the estimated costs of reimbursement of related support services, shall not exceed the total resources available to the Project under this Agreement as well as funds which may be available to the Project for project costs and for support costs under other sources of financing.



3. If unforeseen increases in expenditures or commitments are expected or realized (whether due to inflationary factors, fluctuation in exchange rates or unforeseen contingencies), UNDP shall submit to the Donor on a timely basis a supplementary estimate showing the further financing that will be necessary. The Donor shall use its best endeavours to obtain the additional funds required. 4. If the payment referred to in Article I, paragraph 2 above are not received in accordance with the payment schedule, or if the additional financing required in accordance with paragraph 3 above is not forthcoming from the Donor or other sources, the assistance to be provided to the Project under this Agreement may be reduced, suspended or terminated by UNDP.

Article V Ownership of equipment, supplies and other properties financed from the contribution shall vest in UNDP. Matters relating to the transfer of ownership by UNDP shall be determined in accordance with the relevant policies and procedures of UNDP.

Article VI The contribution shall be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of UNDP.

Article VII UNDP shall provide the Donor on request with a final report within six months after the date of completion or termination of the Project. The final report will be prepared in accordance with UNDP accounting and reporting procedures. The Donor may visit the project to view its implementation and obtain any relevant information.

Article VIII 1. The Donor may mention the contribution in its internal reporting and in press releases to the public but shall not make reference to the contribution or to UNDP in any manner in its advertising of its products or services or of the company in general. All materials, except for internal documents of the Donor, mentioning the contribution, the project or UNDP shall be subject to approval by UNDP. Such approval is not to be unreasonably withheld or delayed. The Donor recognizes that the name or any abbreviation of the name of UNDP may not be used in any manner whatsoever that conveys or suggests direct or indirect UNDP endorsement or support of the Donor or of its products or services. 2. Except for the manner referred to in paragraph 1 above, the Donor shall not in any manner whatsoever use the name, or any abbreviation of the name of UNDP, in connection with its business or otherwise. 3. The Donor shall not in any way whatsoever make use of the UNDP logo in connection with its business or otherwise. 4. UNDP will report on the contribution reporting to its Executive Board in accordance with its regular procedures regarding contributions from private donors. UNDP will endeavour to give due recognition of the contribution in other documentation as appropriate but the manner of such recognition shall be determined at the sole discretion of UNDP.



Article IX

UNDP shall notify the Donor when all activities relating to the Project have been completed.

Article X 1. Notwithstanding the completion of the Project, UNDP shall continue to hold unutilized payments until all commitments and liabilities incurred in implementation of the Project have been satisfied and Project activities brought to an orderly conclusion. 2. If the unutilized payments prove insufficient to meet such commitments and liabilities, UNDP shall notify the Donor and consult with the Donor on the manner in which such commitments and liabilities may be satisfied. 3. Any payments that remain unexpended after such commitments and liabilities have been satisfied shall be disposed of by UNDP in consultation with the Donor.

Article XI 1. After consultations have taken place between the Donor, UNDP and the recipient Government, and provided that the payments already received are, together with other funds available to the Project, sufficient to meet all commitments and liabilities incurred in the implementation of the Project, this Agreement may be terminated by UNDP or by the Donor. The Agreement shall cease to be in force thirty days after either of the Parties gives notice in writing to the other Party of its decision to terminate the Agreement. 2. If the unutilized payments, together with other funds available to the Project, are insufficient to meet such commitments and liabilities, UNDP shall notify the Donor and consult with the Donor on the manner in which such commitments and liabilities may be satisfied. 3. Notwithstanding termination of this Agreement, UNDP shall continue to hold unutilized payments until all commitments and liabilities incurred in implementation of the Project have been satisfied and Project activities brought to an orderly conclusion. 4. Any payments that remain unexpended after such commitments and liabilities have been satisfied shall be disposed of by UNDP in consultation with the Donor.

Article XII 1. The parties shall use their best efforts to settle amicably any dispute, controversy or claim arising out of, or relating to this agreement or the breach, termination or invalidity thereof. Where the parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with United Nations Commission International Trade Law Conciliation Rules then obtaining, or according to such procedure as may be agreed between the parties.



2. Any dispute, controversy or claim between the Parties arising out of or relating to this agreement or the breach, termination or invalidity thereof, unless settled amicably under the preceding paragraph within sixty (60) days after receipt by one Party of the other Party's request for such amicable settlement, shall be referred by either party to arbitration in accordance with the United Nations Commission International Trade Law Arbitration Rules then obtaining. Either party may, at its option, request the American Arbitration Association to provide administrative services for such arbitration and/or serve as the Appointing Authority under the Rules, in which case the American Arbitration Association shall be deemed to have been so designated. The arbitral tribunal shall have not authority to award punitive damages. The parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such controversy, claim or dispute.

Article XIII This Agreement shall enter into force upon signature and deposit by the Donor of the first payment to be made in accordance with the schedule of payments set out in Article I, paragraph 2 of this Agreement. IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed the present Agreement in two copies. For the Donor For the United Nations Development Programme Name: Name: Title: Title: Date: Date



ANNEX 3D TRAC 2 ASSIGNMENT FORM

(A) COUNTRY: Classification: [Revised for CCF extensions] CCF period:

For CCF extensions only

Original CCF period: Extended for (number of years) from (year) to end of (year) Revised period: (xxxx-xxxx) Executive Board approval 1997-1999 TRAC expenditure rate:

(B) CCF PROGRAMME AREAS Programme area 1: [title] Description: [Provide a brief description of the planned outcome or outcomes and partnership strategy in the programme area. Make specific reference to the relevant sections of the CCF, including key indicators of expected results where available. Each description should be about one paragraph, maximum 1/3 page.]

Programme area 2: [add a section for each of the programme areas in the CCF]

Description:___________________________________________________________________________

(C) TRAC 1 US$[found in the RMT] (1) Regional Bureau recommendation TRAC 2 US$[provided by the bureau based on the ranking] (2) Total TRAC 1 & TRAC 2 US$ (3) “Other Resources” US$[found in the RMT] (4) TOTAL: US$ ________ Cleared by DRPC Date

(D) PWG Recommendation for the assignment of TRAC 2: PWG Rating of the CCF: Average/Above Average/Below Average Comments: [Filled out after PWG review. Draw attention to any special interest or options and advice to bureau] ____________________________________ PWG Chair name, signature and meeting no.

(E) ASSOCIATE ADMINISTRATOR’S DECISION: ___ Approved as recommended by PWG. ___ Approved subject to amendments to programme areas No.(s) 1, 2, 3, etc. Comments: ___________ ________________________ UNDP Associate Administrator Date



Summary of programme financial information Annex 3E Note: The total figures for regular and other resources must correspond to the resource figures identified in the Resource Mobilization Target table in the CCF.

Summary of programme financial information For new CCFs: for (Country) covering the CCF period to a/

For CCF extensions: for (Country) covering the extended CCF period to a/

Original CCF period: Extended for (number of years) from (year) to end of (year)

(amounts shown in US$)

Resources

TOTAL For CCF

Programme area 1 Title ...




Programme area 5, etc. Title ...

Regular resources required:

Estimated carry-over

TRAC 1.1.1 and 1.1.2

TRAC 1.1.3

SPPD/STS

Subtotal

Other resources required:

Government cost sharing

Third party cost sharing


Subtotal

TOTAL regular and other resources required $

$

$

$

$

$

Estimated Non-UNDP resources (in parallel funding)

$

$

$

$

$

$

a/ Attach a copy of the Resource Mobilization Target table from the CCF.


Chapter 4: FORMULATING PROGRAMMES AND PROJECTS Page 1

Contents Page 4.0 FORMULATING PROGRAMMES AND PROJECTS 4.1 Policy framework 4.2 Programme and project design 4.2.1 Introduction

4.2.2 Methodology 4.2.3 Task 1. Understanding the current situation, context and

baseline

4.2.4 Task 2. Defining a vision and the problems to be addressed 4.2.5 Task 3. Identifying alternative strategies 4.2.6 Task 4. Selecting the most promising strategy 4.2.7 Task 5. Defining objectives and outputs 4.2.8 Task 6. Using the logical framework 4.2.9 Task 7. Determining activities 4.2.10 Task 8. Specifying inputs 4.2.11 Task 9. Determining the management arrangements 4.2.12 Task 10. Specifying indicators for monitoring and evaluation 4.2.13 Task 11. Identifying external factors and risks 4.2.14 Task 12. Specifying prior obligations 4.3 Types of Inputs

4.3.1 Personnel 4.3.2 Contracts 4.3.3 Training 4.3.4 Equipment 4.3.5 Micro-capital grants 4.4 Support for formulation

4.4.1 Support facilities 4.4.2 Preparatory assistance



4.0 FORMULATING PROGRAMMES AND PROJECTS

1. The first and most important steps towards designing programmes

and projects to be supported by UNDP are set out in chapter 2, notably the processes that result in the preparation of the country cooperation framework (CCF). The present chapter explains how the broad aims and areas of support, set out in a CCF, are translated into discrete programmes and projects through appropriate design activities.

Designers should see annex 2F, Considerations for quality programming, which is a tool that helps to ensure the quality of programmes and projects during design and appraisal.

2. A complete programme support document (PSD) or project document is a programming instrument that reflects the outcome of the design and appraisal process and provides a key reference for implementation. These documents serve two essential and related purposes: they specify the goals and expected results of UNDP intervention; and they are the vehicle through which UNDP provides financial and technical support to achieve these results.

For GEF, see the UNDP-GEF Guidebook www.undp.org/gef/guide/main.htm

3. The formats for the PSD and project document and the appraisal and approval processes are set out in chapter 5. The design activities required by UNDP are set out in the present chapter. These activities must be completed before the relevant document is prepared.

4.1 Policy framework 1. National ownership. All programmes and projects are nationally

owned and entail the commitment of national human and financial resources along with external resources. In particular:

(a) UNDP support to programmes and projects is provided only at

the request of a programme country government;

(b) An essential strategy of the UNDP country office is to engage key government officials, and other stakeholders, in a dialogue on the policy framework for national development. The purpose of this dialogue is to analyse problems, be fully familiar with current programmes and policies, encourage the articulation of a national programme where one does not exist, and to identify the consultative processes that will be followed in deciding what support UNDP should provide in the chosen programme area.

(c) In the case of GEF, the designated GEF Operational Focal Point within the programme country’s government must endorse a project before it can be considered by GEF.

On operational focal points of GEF, see http://www.gefweb.org/BULLETIN/operfocs.htm

2. Programme Approach. UNDP uses the programme approach

since it offers the best guarantee of national ownership, commitment and the sustainability of results after completion of assistance. The programme approach facilitates interventions of an interdisciplinary

The General Assembly encourages the use of the programme approach by all the funds and programmes.



programme approach facilitates interventions of an interdisciplinary nature to address the multisectoral character of most development problems. The approach permits all donor interventions to be made in the context of a broad policy dialogue under government leadership. Donors may support one or several interrelated components of a national programme through coordinated programme interventions. The programme approach works best when a well-articulated national programme, formulated by the national authorities, already exists.

funds and programmes. See 1.2.2. for legislation. See note on definitions of processes and products for enhancing UNDG programming collaboration, issued by UNDG.

3. National programme. This is a coherent set of interrelated policies, strategies, activities and investments approved by a government to attain a specific, time-bound national development objective or set of objectives.

4. Programme or project. UNDP provides support to both programmes and projects. The elements of a programme are set forth in a PSD while those of a project are placed in a project document. The PSD and the project document are legally binding agreements between UNDP and other partners, delineating the plan for achieving the objectives and the means to evaluate their achievement. These documents establish the outputs to be produced in order to achieve the objectives, the activities to be undertaken and the inputs required to produce the outputs. They also specify the indicators by which progress or setbacks are to be assessed, the resources that are needed, and the management arrangements.

The PSD or project document is the key instrument of the programme or project cycle: a sequence of activities that comprises the identification, formulation, implementation, monitoring, evaluation and feedback from experience into the design of new programmes and projects.

5. Programme support. UNDP advocates the programme approach, and the corresponding programme support document, where the problem to be addressed cuts across sectors, themes and geographic areas, involves several institutions, is supported by different funding sources, and where most elements of a national programme are in place. The key elements of a sound national programme include:

A cluster of projects is conceptually distinct from the programme approach and the programme support document. See A User’s Guide to the Programme Approach.

(a) The national policy statements or integrated development plans;

(b) Government leadership and commitment to the programme;

(c) An institutional framework, at the central and decentralized levels, that ensures government ownership;

(d) Efficient mechanisms to support the management of the programme;



(e) The acceptance of the programme as the frame of reference by

United Nations system organizations, donors and international finance institutions, and their willingness to harmonize their efforts and procedures;

(f) A critical mass of financial resources available at the outset to implement the programme;

(g) The involvement of partners and beneficiaries in the planning, implementation and evaluation process.

6. Project support. The aim of a project is to achieve a set of immediate objectives formulated to contribute to the achievement of a broader national development objective. Project support is appropriate in the following circumstances:

(a) where the problem to be addressed is narrow in scope and

responds to a specific development objective;

(b) where the government is not in favour of the programme approach;

(c) in countries in special development situations;

(d) where the aim is to finance activities of limited scope and duration, which cannot be incorporated into existing projects and for which the formulation of a stand-alone project is unnecessary.

Such projects are referred to as umbrella projects.

7. Results orientation. The importance of achieving the objectives and thereby producing concrete and measurable results cannot be overstated. The key issues of a results-based approach are:

Results fall into three categories: outputs, outcomes and impact. These are steps in the logical chain of cause-

(a) Precise objectives must be established as well as indicators to enable all partners to measure progress. By choosing and using indicators well, the parties ensure that any problems are identified promptly and lessons are learned as the programme or project proceeds. All PSDs and project documents must include clear objectives and indicators;

(b) The objectives must contribute effectively to the outcomes

envisaged in the CCF. As such, they constitute significant changes in the development situation. They are usually the result of coherent efforts on the part of many national and international partners. UNDP promotes and encourages partnerships in many ways, for example, through support for aid coordination, for the instruments that are common to the organizations of the United Nations system, through the programme approach, and through the SRF.

and-effect that underlies programme activities. An explanation of these terms can be found in 4.2.7. The country office uses the strategic results framework (SRF) to ensure that the programmes and projects are systematically focusing on results. The SRF helps the country office to balance UNDP corporate goals with the needs and priorities of the programme country. See 1.3 for more information on the SRF.



8. Sustainable human development framework. The key policies that govern the content of CCFs apply equally to the content of programmes and projects themselves, whether a country has a CCF or not. In particular, all support provided by UNDP must conform to the framework for sustainable human development programming. This framework is set out in 1.4.

9. Participation. A wide range of stakeholders should participate in the formulation of programmes and projects. Stakeholders are the parties having an interest in a programme or project, including target groups, civil society organizations, government, United Nations agencies, and other donors. In particular:

Experience shows that many flaws in the design of programmes and projects would have been avoided had there been wider consultations in the early stages.

(a) The participation of target groups ensures that potential opportunities and risks, including lessons drawn from experience, are taken into account in the design. This participation promotes stakeholder’s ownership and commitment, without which the results are unlikely to be lasting. In addition, participation in all phases of a programme or project promotes respect for the human rights of all individuals, including those belonging to indigenous groups, who may be affected by the programme or project;

Sources on participation that may be consulted are: Empowering people: a Guide to Participation, BDP/SEPED; and Who are the Question-Makers? , Evaluation Office. For further information on human rights issues, see Human Rights and Sustainable Human Development, BDP/MDGD, 1998.

(b) Ensuring participation requires investments of time and resources, for which adequate provisions should be made;

(c) Women’s participation should be ensured throughout the stages of the programme or project cycle.

(d) GEF has specific guidelines on participation and information disclosure which require that all GEF financed projects “provide for full disclosure of non-confidential information, and consultation with, and participation as appropriate of, major groups and local communities throughout the project cycle.”

On public involvement in GEF projects, see www.gefweb.org/PUBLIC/public.htm

10. Sustainability. Sustainability means that the individuals, institutions and systems assisted by UNDP continue to function effectively after external support ceases and, in fact, have the capacity to improve continuously their ways of working. All UNDP-supported programmes and projects must be environmentally sustainable. Negative impacts need to be avoided or minimized, positive impacts should be strengthened and environmental opportunities seized. The Environmental Management Guidelines are to be used irrespective of the sectors covered by a programme and project.

See SEED web page for the Environmental Management Guidelines (http://www.undp.org/seed).



11. Capacity development. In all programmes and projects supported

by UNDP capacity development is a fundamental aim, and is accordingly a topic that must be addressed at all stages of the programming cycle. Capacity development is the process by which individuals, groups, organizations, and communities develop their abilities to perform functions, solve problems, and set and reach objectives. A capacity assessment is a participatory, problem-solving technique used to determine the capacity constraints that affect programme design and implementation and how they might be overcome. These conclusions should be fully integrated into the design process.

See UNDP electronic resource book on capacity development (http://magnet.undp.org) See annex 6A: (Capacity for programme and project management: key considerations).

12. Exit strategy. Where UNDP provides support services under national execution, an exit strategy for UNDP support must be incorporated into the programme or project, enabling the national authorities to undertake such services themselves in the future.

For more details, see 6.3.4 on capacity building measures and exit strategies.

4.2 Programme and project design

4.2.1 Introduction 1. The formulation of programmes and projects design is a process of

consultation between UNDP, governments, other stakeholders and pertinent resource persons. Such consultations generate information for planners and provide a forum for public discourse, for articulating and negotiating interests, for building consensus and compromise, and for delineating roles and decision-making responsibilities as the programme or project unfolds.

Useful tools for the design process: • Empowering People:

A Guide to Participation;

• Who are the Question- Makers?;

• Guidance Note on Gender Mainstreaming (March 97);

2. The challenge facing the UNDP country office is not in drafting an excellent technical document but rather in facilitating the participation of the relevant stakeholders and ensuring the full exchange of relevant information. Through this process, a design emerges that is the product of the intellect, knowledge and ingenuity of the participating persons. The process is also a starting point for ownership and sustainability. Any draft of a PSD or project document thus needs to emerge from the process and should not be prepared as a substitute for the process.

• Environmental Management Guidelines (EMG);

• Results Oriented Monitoring and Evaluation: A Handbook for the Programme Manager;

• Capacity Assessment and Development in a Systems and Strategic Context, BDP/MDGD

• annex 2F on



3. Country offices and other units are facing not only the complex task

of formulating cross-sectoral SHD programmes, but also the challenge to ensure that all programmes and projects, including sectoral ones, are gender sensitive, environmentally sound, participatory and aimed at reducing poverty. For analytical and technical purposes, a division is often made between the various SHD dimensions. However, such a division is not helpful in the context of a coherent planning process. In reality, the various SHD dimensions are interrelated in complex ways. Accordingly, they need to be considered together in the very same consultative processes during formulation. This approach also enables the designers to increase synergies and address opportunity costs and trade-offs.

Considerations for quality programming.

• annex 6A; : Capacity for programme and project management: key considerations

On designing biodiversity GEF projects, see http://165.65.10.18/biodi.html; For guidance from the GEF Secretariat see http://www.gefweb.org/Operational_Policies/Operational_Strategy/op_stat/op_stat.html

4. Country offices are expected to follow the programme approach wherever possible. However, when a number of the necessary conditions are absent, it is advisable to follow the project approach. The project may be used to help create conditions conducive to a programme approach, for example by building new partnerships and helping to develop elements of a more comprehensive strategy.

For the conditions that favour the programme approach, see 4.1 para. 5.

4.2.2 Methodology

1. The following pages set out the key tasks to be accomplished in programme and project formulation, that is, in translating an idea for a UNDP intervention into a plan for achieving specific, well-defined results that can realistically be achieved with the available resources. They include in sequential order:

Task 1. Understanding the current situation, context and baseline Task 2: Defining a vision and the problems to be addressed Task 3: Identifying alternative strategies Task 4: Selecting the most promising strategy Task 5: Defining objectives and outputs Task 6: Using the logical framework Task 7: Determining activities Task 8: Specifying inputs Task 9: Determining the management arrangements Task 10: Specifying indicators for monitoring and evaluation Task 11: Identifying external factors and risks Task 12: Specifying prior obligations

For GEF projects, see http://www.undp.org /gef/m&e/main.htm

2. The process described below and the combination of instruments will

help those involved in programme or project design to respond in a meaningful way to complex realities.



4.2.3 Task 1. Understanding the current situation, context and baseline

1. The participants in programme or project design should initially establish a common understanding of the current situation, including socio-economic, gender and biophysical characteristics; the regulatory frameworks (policies, strategies, laws and customs) and how they are enforced; and the major actors (government, traditional authorities, community groups, etc).

2. Sufficient data, gender-disaggregated wherever possible, must be

gathered at this stage to establish a baseline. Particular attention should be given, even at this early stage, to understanding and collecting data on the capacity gaps (substantive, technical, managerial, etc.) that may exist in the sector or multisectoral areas that the proposed programme or project will address. Subsequent monitoring and evaluation determines the extent to which a situation has changed (including in the area of capacity development) from this baseline.

A list of factors defining the programme environment may include : • Public policy context • Culture • Gender relations • Race relations • Political and/or

economic power relationships

• Ecology/ geography • Existence or risk of

natural disasters • (Labour) migration

patterns • Climate • Human rights situation • Military/civil conflicts

3. At the national level, sufficient information is usually found in documents such as the common country assessment (CCA), the country strategy note (CSN), the United Nations Development Assistance Framework (UNDAF), the country cooperation framework (CCF), the National Human Development Report (NHDR), national Agenda 21, national environmental action plan, national disaster-prevention plan, national plans of action for Beijing follow-up. Other relevant documentation includes baseline studies, policy research and evaluation undertaken by civil society organizations, research institutes, international financial institutions and other donors located within the programme country.

• Structure and degree of transparency of the bureaucracy

• Political system • Socio-economic

situation

4. When the existing documentation does not provide enough information to understand the context of the specific programme or project envisaged, an analysis must be undertaken. This could also be a first step in a workshop with relevant resource persons, institutions and stakeholders.

For additional information on stakeholder analysis, see the following

5. In addition, it is recommended that an analysis of stakeholders be carried out to identify the key stakeholders and to understand their capacity (in terms of experience, skills and sustainability) and legitimacy (in terms of consistency, representation, membership and associated partners and functions).

documents: “Empowering People: A Guide to Participation”, UNDP, 1998; “Building Partnerships with Civil Society: A Practitioners Guide” ,UNDP, 1999.



4.2.4 Task 2: Defining a vision and the problems to be addressed

1. Based on a thorough understanding of the current situation, the stakeholder group can identify the desired outcome and the aspects that need to be changed. The key problems and their underlying causes must be identified.

2. The underlying causes will often be perceived differently by different stakeholder groups. UNDP experience in participatory processes can prove helpful here in establishing a broad understanding of the situation and promoting a richer dialogue among stakeholders on defining a strategy.

Information is organized into a tree-like diagram. Tree diagrams are multi-purpose, visual tools for narrowing and

3. A repeated process of asking “why” should continue until all relevant causes and effects, and the relationship between them, have become clear.

prioritizing problems, objectives or decisions. The main issue is represented by the tree trunk, and the relevant

4. During the process of defining the problem, the participants should also research similar experiences in the country or elsewhere. If the information is insufficient, arrangements should be made to collect additional data.

factors, influences and outcomes show up as the roots and branches.

5. Based on the analysis, the stakeholders should identify the specific problems to be addressed by the programme or project. This set of problems will normally be more limited in scope than the complete set of problems that have been identified.

4.2.5 Task 3: Identifying alternative strategies

1. Once the problem – the present unsatisfactory situation - has been defined and clear cause and effect relationships have been established, the next task for the participants is to determine:

(a) What satisfactory situation they would like to exist at some point in

time in the future that would allow them to state that the problem has been solved. This requires a clear understanding of the desired outcomes, which allows the participants to define the objectives of the programme or project;

(b) How to get there. That is, how to pass from the present unsatisfactory situation to the future satisfactory situation they would like to exist. This is the strategy for attaining the objectives.

2. To bridge the gap between the two situations, the participants explore in a creative way alternative strategies, without initially limiting the scope to “middle-of-the-road” approaches.

It may well be that the odd idea may turn out to be the most promising in the end.



3. In some cases, the strategy may have been determined to a

considerable degree, as when a national programme exists already. What is important is that a good strategy emerges from this process, one that responds to the national priorities and the UNDP mandate. In forming the strategy, participants should draw on the experiences of others, both within and outside the country.

For other sources see chapter 15, (“Feedback”) of the Results-oriented

4. Within UNDP, a number of sources may be tapped for relevant lessons such as the sub-regional resource facilities (SURFs), the central evaluation database (CEDAB), the Evaluation Office web sites (http://intra.undp.org/eo and http://www.undp.org/eo), the BDP web site (http:/www.undp.org/bdp) and publications of the Evaluation Office.

Monitoring and Evaluation: A Handbook for Programme Managers. A well-defined problem tree can be a useful place to start an objective tree.

5. The exploration of alternative strategies should, again, be carried out by a wide range of stakeholders so that innovative approaches or new opportunities do not get overlooked and potential risks are identified. The analysis considers the likely impact of each strategy on the target groups as well as on gender, the environment, etc. It also includes weighing the overall costs and benefits and other implications of each alternative against available resources, means, and capabilities.

Eliminating the root causes on a problem tree can become the branches of an objective tree which would represent entry points for possible strategies for addressing the problem(s).

4.2.6 Task 4: Selecting the most promising strategy

1. Before deciding on a programme or project strategy it is important to consider the implications of the possible solutions, in terms of likely impacts, opportunities that could be seized, and trade-offs between choosing one strategy over another.

Consider including TCDC as part of the strategy.

2. The alternatives need to be screened to identify and estimate the potential implications, external factors and risks, overall feasibility and potential for sustainability. Based on this screening of the options, the participants will be able to agree on the most promising strategy to be developed.

See 4.2.13 on external factors and risks. It is essential that the operational strategy formulated (see below) reflect adequate measures to reduce and

3. Risks. Interventions imply certain risks and can have positive or negative effects. If the effects can be foreseen, the participants must ensure that they are sufficiently understood. Where there is much uncertainty, such as intervention at the policy level, more thorough social, economic, gender or environmental impact assessments may be needed.

mitigate negative impacts and to maximize positive ones. The concept of environmental opportunities, for instance, can be defined as "identification of new activities geared to maximize the value of resources and their



4. Opportunities. The defined scope of the proposed intervention may

inhibit the search for measures that mitigate negative effects. Looking for opportunities can pave the way for creative solutions beyond this limitation and may actually yield measures more likely to improve people's lives and the resource base alike.

contribution to sustainable development...." (UNDP EMG, 1993) Similarly, there are social opportunities, such as strengthening

5. Trade-offs. It is important that trade-offs and opportunity costs between different strategies be understood. All relevant aspects and SHD dimensions, thus, must be discussed at the same time with a diverse group of stakeholders. In the case where trade-offs may lead to less-than-desired effects in one of the SHD dimensions, these effects need to be understood by stakeholders.

6. The strategy should comprise components, each designed to tackle

a cause or set of causes of the problem. Each component is then examined to ensure that sustainable human development is addressed to the maximum extent.

7. The capacity of the concerned organizations, institutions and

individuals to carry out activities effectively, efficiently and sustainably must also be examined. Where necessary, capacity building measures should be determined.

8. If the resources needed to solve the problem are greater than those

available, additional efforts to mobilize the required resources should be made. Alternatively, the objectives may have to be scaled down and priorities set as to which portion of the problem can be addressed. It is important, however, that all the parties agree that it makes sense to tackle only part of the problems.

coping mechanisms, promoting the role of women, improving governance. For example: A strategy that places emphasis on private sector development may cause harm to the natural environment. While this may be acceptable or tolerable, the overall implications must be assessed. Stakeholders must decide on a strategy based on a complete understanding of the situation. See annex 6A on capacity for programme and project management.

4.2.7 Task 5: Defining objectives and outputs

1. At this stage in the formulation process, there is a clear understanding of the national development objectives, the objectives to be achieved through UNDP support, and the best strategy to achieve them. The participants should now work out the programme support or project design, that is, a hierarchy of objectives, outputs, activities and inputs.

An example of a national development objective might be to reduce by 50 per cent over 10 years the number of people in

2. The development objective is the national development objective or the objective of the national programme. Accomplishing the development objective is usually beyond the scope of UNDP intervention. It is generally the result of a complex partnership, in which local actors play the key roles. UNDP can, however, help foster effective partnerships among both local and external actors, as part of its aid coordination mandate.

a certain region living in poverty. The UNDP intervention would contribute to this result, but would probably be one among many contributions.



3. While it is seldom possible to measure the UNDP contribution to a

development objective, it is essential to identify the resources that will be needed, from both domestic and external sources, to achieve it. If the achievement of a development objective is subject to very much uncertainty, it may be difficult to define suitable objectives for the UNDP intervention.

Emergency operations may be exceptions to this, where assistance in the form of food, shelter or health care, is provided directly to the beneficiaries.

4. UNDP intervention aims to achieve one or more programme support objectives (PSOs) or immediate objectives. The achievement of a PSO or immediate objective is also the result of partnerships; however, the scope is narrower and the time frame shorter than with a development objective. A UNDP intervention is normally designed so that it can be successfully completed within five years. The maximum permissible duration is seven years.

For a longer period of support, a new PSD or project document is needed. Also, if the same institution receives support for ten years or more, an evaluation must be carried out. See 7.4.1 on mandatory evaluations.

5. Through UNDP intervention, the PSO should be clearly achievable. Moreover, there should be a clear link between the PSO and the CCF outcome to which it relates.

Examples of outcomes are an institution acting on a recommendation to reorganize, or when it makes use of its enhanced capacity and

6. PSOs or immediate objectives must be clearly defined. This means that:

provides better services. Examples of outputs are extension workers trained in specific skills

(a) The desired change and where it will take place are clearly stated;

and access to credit improved in specific ways.

(b) The magnitude and time-scale of the change is specified;

(c) The persons who will be affected are stated, including any significant differences due to gender, indigenous population groups, etc.;

(d) The progress towards achievement of the objective can be measured; to the extent possible, indicators in the form of quantitative targets should be agreed upon.

7. Achieving a PSO entails the production of a series of outputs. Outputs are the specific products and services that are generated by projects and programmes.

8. The stakeholders must agree on the combination of outputs that is both necessary and sufficient to achieve each PSO. In other words, the selected outputs are no more and no less than what is indispensable to the achievement of the objective. The stakeholders must also agree on indicators that will show whether the outputs have been successfully produced. A time frame for monitoring outputs may be established as part of the work plan.

See Task 10 for more information on indicators.



9. Specific outputs may be required, to strengthen the role of women, to

mitigate negative environmental impacts, to maximize opportunities and positive impacts, or to manage risks.

4.2.8 Task 6: Using the logical framework

1. The logical framework or “logframe” shown in table 4.1 is a matrix that

summarizes the main elements in programme and project design. The “logframe” can be used to ensure consistency among objectives, outputs, activities and inputs, to identify important risks or assumptions, and to ensure that the intervention is likely to achieve measurable results. The PSD and project document formats incorporate the essential elements of the “logframe”, that is, objectives, outputs, activities, inputs, indicators and risks or assumptions.

The logframe is not part of the PSD or project document. It can, however, be valuable in the design stage and as a reference at the implementation stage.

Table 4.1 The logical framework (logframe) matrix

(1)

Programme or project summary

(2) Indicators

(3) Means of

verification

(4) External factors (assumptions

and risks) Development objectives

PSOs or immediate objectives

Outputs

Activities

Inputs

2. To complete the logframe matrix:

(a) Summarize in column 1 each component (objectives, outputs and

inputs);

See Task 5.

(b) Specify in column 2 the indicator or indicators that will enable the parties to assess progress as well as the final success;

See Task 10.

(c) Specify in column 3 where the indicator can be found. This is the source of data for the indicator.

For example, a report or a survey.

(d) State in column 4 any assumptions or roles that may affect progress or success.

See Tasks 11 and 12.

For an example of a logframe, see the Programming Manual Reference Centre on the UNDP Intranet (http://intra.undp.org/osg)



4.2.9 Task 7: Determining activities

1. Once the outputs have been agreed on, the activities that will produce these outputs must be determined, as follows:

(a) The chosen activities are those that are both necessary and

sufficient for the production of the given output. Among possible activities, various combinations might be used to achieve a given output. The task of the persons involved in formulation is to choose those combinations of activities that have the greatest chances of succeeding at the least cost;

Examples of activities are planning and running a training course, and carrying out a survey.

(b) Different combinations of activities should be considered. For

example, the development of a new government policy or a new management system could be achieved through various combinations of studies, workshops, consultants recruited from abroad, study-tours to foreign countries and so on. Moreover, there are often several different ways of carrying out a given activity by recruiting individuals directly or by contracting a firm of consultants;

(c) For each activity, the persons involved in formulation identify its duration, the resources required, its sequence vis-à-vis other activities and who is responsible for carrying it out.

Table 3 of the PSD allows you to present this information in the form of a work plan. See annex 5C for a sample work plan.

4.2.10 Task 8: Specifying inputs

1. The next task is to decide what inputs will be needed to carry out the activities specified. The inputs are physical items, persons, goods or services needed to carry out programme or project activities. The type, quality, quantity and timing of the inputs must be both necessary and sufficient for carrying out the agreed activities. In other words, the selected inputs are no more and no less than what is needed to carry out the activities.

2. There are a number of specific policies regarding the quality and

quantity of inputs that UNDP can finance, deriving from the UNDP mandate and programme policies.

These input policies are set out in 4.3.

3. The UNDP country office ensures that the use of support for technical services (STS) resources is considered, particularly where UNDP support will be managed by national institutions.

The scope of the STS facility and the related procedures are explained in 3.6.



4. Input-output budget. An input-output budget organizes outputs,

activities and inputs so that outputs can be planned and monitored according to the respective input. It is particularly needed when there are several donors and UNDP has to keep track of costs attributable to each output. Table 4a of the PSD organizes inputs according to the outputs and objectives that they help to achieve.

For this reason, Table 4a is often more useful than the traditional budget format. See annex 5D for a sample budget by objective and output.

5. Aligning objectives with available resources. It is only at this point in the formulation process that the persons involved in formulation are in a position to determine how much the programme support or project is going to cost and prepare a complete budget. Should the total budget exceed the resources available, then further consultations among the stakeholders must take place. The process may require that the partners scale down the programme support or immediate objectives and the outputs, or re-adjust the activities and the inputs. If some outputs or activities are eliminated, be sure that the strategy is still workable.

4.2.11 Task 9: Determining the management arrangements 1. As part of the formulation process, it is essential to determine how

activities will be carried out so that the programme support or project objectives can be achieved within the established limits of time, quality and cost.

GEF is specific in designating roles and responsibilities for project management tasks. TORs are required for specific functions such as Steering Committees, as well as project staff and

2. The parties responsible for programme or project design must determine, in particular:

(a) The roles and responsibilities of the institutions involved and in

particular, determine the institution designated to manage the programme or project;

consultants. The procedures for choosing management arrangements are set out in 6.2.1.

(b) The required internal and external coordination mechanisms and the overall management structure, such as a steering committee, with representatives from stakeholders;

(c) The composition of the programme support or project team and who will be responsible for doing what, how, when, and where, and who will be responsible for reporting to whom; this includes the terms of reference of the key persons;

The design should make it clear who is responsible for the achievement of the PSOs or immediate objectives and for the

(d) Who will be responsible for procuring and managing inputs and whose rules will apply;

production of the outputs.

(e) The arrangements for preparing and updating work plans;

(f) The mechanisms to be used to monitor and evaluate the programme or project;

See 7.0 on reporting.



(g) The mechanisms for sound financial accounting and timely and

accurate reporting;

(h) The audit arrangements. Provisions for the funding of programme and project audits must be made in the PSD or project budget, unless the designated institution already has audit arrangements acceptable to UNDP.

See 6.8.3 para. 5

3. Capacity needs. The parties concerned (UNDP, the Government coordinating authority, the designated institution and other key parties) must review the capacity needs for the programme or project before it is finalized. This review determines the measures that need to be taken as part of the programme support or project to strengthen the capacities of the designated institution.

See annex 6A on key considerations to determine these capacity needs.

4. Country office support and exit strategy. When a national institution lacks the managerial capacity for certain tasks, the UNDP country office may assist through country office support services. In such cases, there must be an agreed plan for phasing out such assistance. This is referred to as the exit strategy, the aim of which is to ensure that national authorities acquire the capacity to carry out activities of a similar nature in the future.

See 6.3.4 on country office support and exit strategies.

5. When the programme or project includes a management support unit, UNDP country office support or UNDP direct execution, the effectiveness of these arrangements and particularly their impact on capacity-building and sustainability within national institutions must be systematically reviewed during monitoring and evaluation.

See 6.3.3 for more information on management support units. An NGO that is asked to implement activities funded by UNDP may

6. Implementation of activities by non-governmental organizations. Where it is decided that part of a project will be carried out by one or more non-governmental organizations (NGO), the NGO activities are treated as a subcontract. The NGOs are chosen according to the same transparent, competitive process that would apply to a private company. Thus, it is not appropriate to name the NGO in the project document or PSD. Naming the NGO in the document amounts to waiving competitive bidding.

be named in a PSD or project document if a waiver of competitive bidding is obtained before the PSD or project document is signed. If an NGO is itself to be the designated institution, the proposal to waive competitive bidding is examined by the LPAC. See 6.2.4.

4.2.12 Task 10: Specifying indicators for monitoring and evaluation

1. Indicators help to determine the extent to which a programme or

project is achieving the expected results. They are a means of measuring what actually happened against what was planned in terms of quantity, quality and time. Indicators are needed to check on the progress being made as well as on the successful accomplishment of a task.

For GEF Monitoring and Evaluation, see http://www.undp.org/gef/m&e/main.htm

2. Through the consultative process outlined above, the participants agree on how progress towards achieving the objectives is to be



measured, and on what will be indicators of success. They may need to ensure that specific activities, such as surveys, are undertaken for the purposes of establishing the degree of success. Adequate indicators are the basis for monitoring and evaluation.

3. Monitoring and evaluation aim to provide the main parties with timely

information about the progress, or lack thereof, in the production of outputs and the achievement of programme or project objectives. This serves as a basis for decision-making to improve the performance of the programme or project and to feed into the learning processes. The mechanisms used to monitor programmes and projects include:

(a) Technical, financial and progress reports prepared by the

institutions involved in programme or project activities in consultation with stakeholders

Such reports include the Annual Programme/Project Report. See 7.0 on.

(b) Surveys, studies and research; (c) Periodic meetings of the programme support or project

coordinating committee, working sessions and field visits; (d) Consultations with stakeholders during implementation.

monitoring, reporting and evaluation

4. The monitoring and evaluation arrangements must be determined during the formulation of the programme support or project. Such arrangements must specify the monitoring mechanisms (e.g., surveys, interviews, field visits) and any plan for evaluation, the parties responsible, reporting requirements, schedules and costs.

GEF requires mid- term and final evaluations as well as the input of consultants in cases where a project may have difficult components. www.undp.org/gef/m&e/main.htm

5. Make adequate provision for the costs of monitoring and evaluation in the programme or project budget (budget line 15). STS facility may be used when the services of a United Nations agency are appropriate.

See 3.6 for details on how to use STS resources.

4.2.13 Task 11: Identifying external factors and risks

1. External factors are events or decisions that are beyond the control of the managers of the programme or project and which nonetheless affect the achievement of the objectives, the production of the outputs, the implementation of the activities and the delivery and utilization of the inputs. These factors may have a positive influence or put the achievement of the objectives at risk.

2. As an integral part of programme and project formulation, the participants must identify those external risk factors, and ensure that they are addressed. In the programme approach, many risks are internalized into the objectives and strategy. For example, a food security programme might include activities undertaken by the Ministry of Agriculture to help farmers to grow more cereals; an external risk factor might be pricing policy, handled by the Ministry of Finance. An objective relating to pricing policy and involving the Ministry of Finance could be included in the national programme, thereby reducing the risk to the programme.



3. As with other aspects of sound design, the risks can be reduced by

ensuring that lessons from elsewhere have been considered and that the target groups have been fully involved in the design process. If the risks are still high, the participants must reconsider the design.

4. Many risks are related to the capacity of the systems and institutions to

perform as planned and to address new or unforeseen circumstances as they arise. This risk is addressed by ensuring that capacities are explored at an early stage in the formulation process. Sometimes, the best way to minimize a risk is to arrange for piloting activities before launching a process more widely. A pilot phase allows experience to be gained and lessons learned that can improve the quality and success of the wider process.

See Task 4 (4.2.6) on selecting the most promising strategy.

4.2.14 Task 12: Specifying prior obligations

1. A common way to minimize risks is to provide for activities to begin only after certain conditions have been met. In some cases, the conditions need to be met before a PSD or project document is signed. In other cases, if only some of the outputs or activities are affected by a given risk, then the agreed condition is applied only to them while the rest of the programme or project proceeds.

4.3 Types of inputs

1. This section outlines the policies that guide the selection of inputs

financed by UNDP.

For information on specification and budgeting of inputs see 5.2, and for obtaining and managing inputs, see 6.4.

4.3.1 Personnel 1. The policies on personnel inputs derive from the policies on national

ownership and sustainability set out in section 4.1-Policy Framework. UNDP finances programme and project personnel who have skills that are needed in order to attain the programme or project objectives, but are not available within or to the government. They are provided for the minimum time necessary to carry out the relevant programme or project activities.

Consideration should always be given to expertise that may exist in other developing countries (TCDC).

2. The design team must ensure that the programme or project receiving support assigns its own personnel to participate in programme or project activities. In principle, government officials cannot be funded under the UNDP contribution to a programme or project since this would undermine national ownership and sustainability. This is a United Nations policy.

For the United Nations policy, see the circular issued in April 1996 by the heads of the JCGP agencies in the Programming Manual Reference Centre on the

3. The personnel inputs also include United Nations Volunteers, such as international and national UNV specialists and field workers.

UNDP Intranet (http://intra.undp.org/osg). See also 6.4.2. on personnel.



4. UNDP can finance administrative support personnel such as

accountants, secretaries and drivers, where this helps to relieve national staff from administrative tasks attributable to UNDP support and where the programme or project lacks the resources to provide such support personnel itself.

See 6.4.2 para. 8 for more information on UNV personnel.

4.3.2 Contracts

1. Contracts with institutions, private entities or civil society

organizations may include the services of personnel, equipment and other inputs. The applicable policies must be complied with whether inputs are procured directly or indirectly through such a contract.

Contracts are also called subcontracts. See 6.4.3 on management of such contracts.

4.3.3 Training 1. UNDP finances training to further the objectives and expected results

of a programme or project and to strengthen national capacities.

2. UNDP does not normally finance academic degrees or long-term studies of individuals unless this is part of capacity development essential for the achievement of sustainability or other objectives of the programme or project.

3. As part of the policy on sustainability, UNDP does not pay the salaries of participants in training activities. The employer of the participant must ensure continued payment of salary and appropriate allowances. UNDP does not pay sitting fees or otherwise remunerate individuals to attend training.

See 6.4.4 on how to organize training.

4. UNDP does not finance the participation of officials in international meetings and conferences where the main purpose is to present government policy.

Governments must finance their own participation in such meetings.

4.3.4 Equipment 1. UNDP resources can be used for the purchase of equipment

required for producing successful programme and project outputs. There are special concerns about the role of equipment in the design of programmes and projects and the policy should be consulted in detail if equipment is expected to be a major input financed by UNDP. In particular, there are special conditions if the equipment component comprises 50 per cent of the total PSD or project budget or costs over $1 million. In such cases, the country office is required to make a formal assessment of the equipment component. This assessment is reviewed by a local PAC.

See 5.5.3 for policies on approving programmes and projects with large equipment components. UNCDF may be able to assist with capital investments.



2. UNDP resources cannot be used purely for capital investments in

programmes and projects. This refers to construction or other major infrastructure development or large equipment components. Exceptions may be made in least developed countries and countries in special development situations. The environment management guidelines must be used whenever a programme or project has an infrastructure component even if it is limited to early pre-feasibility investigations. All proposals for support to infrastructure projects must be submitted for approval at an early stage through the regional bureaux to Associate Administrator.

See 6.4.5 on managing equipment inputs.

3. National institutions receiving support from UNDP are expected to meet the recurrent costs that are incurred in the implementation of programme and project activities. This includes the cost of operation and maintenance of vehicles, provision of stationary and other expendable supplies. In exceptional cases, where neither the government nor the institution can meet this obligation, the cost can be met by UNDP.

This applies particularly in least-developed countries and countries in special situations.

4.3.5 Micro-capital grants 1. UNDP provides micro-capital grants for both credit and non-credit

purposes as inputs to its programme and project activities. Micro-capital grants are provided to support the activities of non-governmental organizations (NGOs) and community-based organizations (CBOs).

See 6.4.6 for policies and procedures on the management of micro capital grants. For information on micro-finance programmes please see the Special Unit for Microfinance (SUM) Internet site at http://www.undp.org/sum

2. Micro-capital grants for credit and non-credit activities may be included among the inputs financed by UNDP on condition that they do not exceed $150,000 per recipient organization per programme or project. Of a country’s TRAC allocation, no more than 10 per cent may be spent on micro-capital grants over the CCF period. If this percentage is to be exceeded, the country office must submit a request to the Associate Administrator through the concerned regional bureau. A decision will be made in consultation with BOM, BDP/SUM and OSG.

For information on global small grants programmes see the BDP intranet site intra.undp.org/bdp/ or contact BDP for the following publications: Partners in Development Programme (PDP) Final Evaluation; PDP Project Guidelines Participatory Local Governance, Technical Advisory Paper 1 (The

3. The following types of activities are supported by grants for non-credit purposes:

(a) Strengthening the institutional capacity of local NGOs and CBOs;

LIFE Programme); GEF Small Grants Programme: Operational Guidelines; Africa 2000: Guidelines for Africa 2000.

(b) Supporting community-based self-help initiatives, which may include income-generating activities designed to alleviate poverty;

For GEF Small Grants Programme, see http://www.undp.org/sgp/index.htm

(c) Promoting advocacy activities and networking between civil society organizations (CSOs), government and donors; and



(d) Supporting NGOs and CBOs involved with local environmental

protection and poverty eradication activities.

4. Grants for credit activities can be used by the recipient organization to cover the costs of its operations, purchase equipment, hire new staff, or to capitalize credit funds within the financial limits set out in paragraph 2 above.

Grants to organizations for credit purposes are reported under budget line 71. Grants for non-credit purposes are reported under budget line 72. See 5.2.7.

5. When grants are made to organizations involved in credit activities (loans, loan guarantees, revolving funds), UNDP requires that the organization have adequate procedures to ensure repayment of the credit it provides. UNDP does not receive repayment itself. The grant is considered a catalyst to help the organization to develop.

See 6.4.6 on the management of grants.

4.4 Support for formulation

4.4.1 Support facilities 1. Several of the regular resource lines in the UNDP financial

framework may be used to fund the costs of programme or project design and formulation activities. The main ones, and where to find out about them in this manual, are: SPPD (see 3.5), STS (see 3.6), DSS (see 3.8) and SRC (see chapter 9) for collaborative programming.

See 3.1, table 3.1 on the financial framework.

4.4.2 Preparatory assistance 1. Preparatory assistance is used when the parties have already

agreed on the broad lines of the proposed intervention and immediate inputs are required to help to finalize the programme or project design or begin certain activities of the programme or project itself.

In the case of GEF, preparatory funding is available from the Project Development Facility (PDF) for amounts up to $25,000 for Block A, up to $350,000 for Block B. PDF Block C grants for a maximum of $1 million

2. The purpose, activities and budget of preparatory assistance are recorded in a preparatory assistance document. The UNDP resident representative arranges for a meeting of the LPAC to review the document together with the available documentation on the full programme or project. The approval procedures set out in 5.4 and 5.5 must be followed. The UNDP resident representative signs the preparatory assistance document once he/she is satisfied that it is acceptable to the government and the designated institution, and other interested parties as appropriate.

are also in principle available, though these are more appropriate for preparing large investment projects and are rarely utilized by UNDP-GEF. See 5.4.2.



3. The duration of preparatory assistance may not exceed one year. If

the full PSD or project document is not ready 12 months after the signature of the preparatory assistance document, the preparatory assistance budget must be closed and the government must be informed.

4. The main elements of the preparatory assistance, including the

budget, must be incorporated in the PSD or project document.

5. The preparatory assistance document contains three elements:

(a) A standard PSD or project document cover page. The financial

data and the duration should refer to the preparatory assistance period only;

(b) A description of the intervention. An outline of the full intervention, including an estimate of the likely costs and an explanation of how the intervention relates to the CCF or other framework document; specific outputs, activities and inputs that apply to the preparatory assistance;

(c) A standard budget.

See 5.2 for information on budgets.


Chapter 5: PROGRAMME SUPPORT DOCUMENTS AND PROJECT DOCUMENTS Page 1

Contents Page 5.0 PROGRAMME SUPPORT DOCUMENTS AND PROJECT

DOCUMENTS

5.1 Programme support document and project document formats 5.1.1 Programme support document format

5.1.2 Project document format 5.1.3 Programme and project documentation for interventions in

countries in special development situations

5.2 Preparing Budgets 5.2.1 Format 5.2.2 Budget lines 5.2.3 Administrative and operational services 5.2.4 Work months 5.2.5 Budget line codes 5.2.6 Illustrative PSD/project budget 5.2.7 Budget components 5.2.8 GCCC budgets 5.3 Preparing the cover page for a PSD or project document 5.3.1 Introduction 5.3.2 Cover page data 5.3.3 Sample cover page for a PSD or project document 5.4 Appraisal 5.4.1 Purpose and content 5.4.2 Procedures 5.5 Approval 5.5.1 Purpose 5.5.2 Approval authority and accountability 5.5.3 Procedures for the approval of programmes and projects

with large equipment components

5.5.4 Dissemination of information 5.5.5 Advance authorization 5.5.6 Format for advance authorization of a PSD, project

document or revision document

5.6 Programme and project support services 5.6.1 Programme logistical support 5.6.2 Management service agreements



Annexes 5A Table 1. Funding of the national programme

5B Table 2. Objectives, outputs and monitoring indicators or benchmarks

5C Table 3. Work plan for the next 12 months 5D Table 4. Budget by objective and output



5.0 PROGRAMME SUPPORT DOCUMENTS AND PROJECT DOCUMENTS 1. The chapter explains the process of completing, appraising and

approving programme support documents and project documents. The formats for these two documents are included here with brief explanations on the type of information required to complete them. The chapter also explains how to account for different types of inputs in a programme or project budget.

2. Persons responsible for formulating programmes and projects must complete the processes outlined in chapter 4 before attempting to prepare a programme support document or project document. This will ensure that opportunities and risks have been adequately explored and that an effective, results-oriented strategy has been developed.

3. For GEF projects, once a proposal at the PDF Block A and Block B level is approved by the GEF, funds can be operationalized by following expedited procedures for the preparation of a UNDP project document. GEF project documents follow the standard UNDP format. Under expedited procedures, a standard UNDP cover-page, work-plan, budget, legal context and terms of reference are added to the GEF Block A or Block B proposal.



5.1 Programme support document and project document formats

1. Annotated formats are provided in 5.1 and 5.1.2. For easy reference, each format refers to the applicable sections of chapter 4.

5.1.1 Programme support document format Section I – National Programme A. Analysis of the problem This part is based on the information gathered during the problem definition stage (see 4.2.3 and 4.2.4). It should include: (a) The national development problems that are being addressed; (b) Measurable indicators of the problems that can be used to show progress towards solving the problems; (c) The population group affected; (d) Gender and environmental aspects of the problem; (e) Previous experiences and lessons learned (by national and international partners) B. Outline of national programme This part should contain a brief summary of the national programme. If there is no national programme, the information is derived from government plans and policy and strategy statements. Subject to government agreement, one of the first objectives of UNDP programme support could be to finalize a national programme. This part includes: (a) The development objective: the overall goals set by the government; (b) Strategy: how the national development objective will be reached; (c) Beneficiaries: target groups, disaggregated according to gender and other variables, such as

indigenous groups, where relevant; (d) Major sub-programmes: components of the overall programme – include an organizational chart if

there are many components; (e) Institutional arrangements: arrangements for the management of the national programme,

interministerial coordinating arrangements, legislative requirements, etc., (f) Funding: complete table 1 (see annex 5A) C. Capacity requirements and assessment This part draws from the work on identifying solutions as well as from the capacity assessment, if one has been done. It identifies the major strengths, weaknesses and opportunities for support in the national programme. Examples of important aspects of capacity requirements are strategy and policy formulation, legislation, human resources, technology, management capacities, monitoring and evaluation capacities, aid coordination and resource mobilization.



Programme support document format (continued) Section II - Strategy and objectives for UNDP support A. Policy framework This part describes how the national programme relates to the UNDP mandate, the recommendations of global summits and conferences, and the CSN, CCA, UNDAF and CCF. B. Strategy for use of UNDP resources This part constitutes the final outcome of the work on identifying alternative strategies (4.2.5). It describes: (a) How it was decided which aspects of the national programme UNDP would support; (b) How UNDP resources are going to be used towards achieving the national development objectives. C. Programme support objectives This part, in accordance with 4.2.7, states: (a) The objectives to be achieved through UNDP intervention; (b) The time frame, the resources available and measurable indicators; (c) For each objective, the target beneficiaries in terms of socio-economics, geography and gender. D. Management This part, drawing on 4.2.11, describes (a) The roles and responsibilities of all institutions involved; (b) The composition of the programme team and who will be responsible for doing what and when; (c) The arrangements for preparing and updating work plans; (d) The mechanisms for sound financial accounting and timely and accurate reporting; (e) The agreements between the designated institution and United Nations agencies. The agreements

are attached as annexes to the PSD, where available. (f) The internal and external coordination mechanisms, such as a steering committee with

representatives of those institutions relevant for the proper functioning of the national programme and the external support, must be specified.

(g) The audit arrangements: see 6.8.2 E. Monitoring and evaluation This part, drawing on 4.2.12, includes: (a) The mechanisms that will be used to monitor and evaluate the national programme; (b) The schedule for when these monitoring actions have to be carried out and who is responsible, e.g.,

for preparing reports and convening meetings; (c) The resources allocated for substantive review meetings among stakeholders at least once a year to

revalidate or adjust the objectives, outputs, activities and inputs; (d) How the work plan and budget (tables 3 and 4 of the PSD) will be updated. F. Risks and prior obligations This part, in accordance with 4.2.13 and 4.2.14, states: (a) The risks and the steps taken to minimize them; (b) The conditions that must be met before UNDP can begin to provide support with a given component.



Programme support document format (continued) G. Legal context 1. If the country has signed the Standard Basic Assistance Agreement (SBAA), the following standard text

is quoted:

“This programme support document shall be the instrument referred to as the project document in Article 1 of the SBAA between the Government of (country) and UNDP, signed on (date).” For a list of SBAA signed with governments, see circular UNDP/LEG/SBA/Listing98/1.

2. If the country has not signed the SBAA, the following standard text is quoted:

“This programme support document shall be the instrument envisaged in the Supplemental Provisions to the Project Document, attached hereto.”

3. In the case of country office support to national execution a letter of agreement between UNDP and the Government is required. See 6.3.1 for information on country office support to national execution and annex 6C for the text of the letter.



Programme support document format (continued) Section III – Outputs, activities, inputs, work plans and reviews Refer to 4.2.3 through 4.2.12 when completing this section. A. Table 2: Outcomes, outputs and monitoring indicators or benchmarks In this table provide the following information: (a) The outputs defined in measurable terms and organised according to each PSO; (b) The outcomes expected as a result of the outputs being produced and the PSO being achieved; (c) Specific indicators and benchmarks to monitor progress towards producing both the outputs and

outcomes. B. Table 3: Activities and work plan In this table provide the following information: (a) The activities in relation to each output for a period of at least 12 months; (b) When the activity begins and ends, what specific management actions are required, and who is

responsible for carrying out each one; (c) The designated institution must update the work plan at least once a year in consultation with

stakeholders. C. Tables 4(a) to 4(d): Financial management tables Use table 4(a) to record the inputs, arranged according to the activities and outputs that each input supports. Describe each input, and specify which entity will obtain it, the cost and the budget sub-line code. The budget must be in accordance with the procedures set out in 5.2. When table 4(a) is prepared using the PSD software, three additional tables can be generated:

Table 4(b), which is a consolidated budget by source of funds; Table 4(c), which shows the budgets according to each responsible institution; Table 4(d), which shows the budget according to outputs.

These tables must form part of the PSD whether or not the software is being used. Also include here any government cash counterpart contribution. See 5.2.8. D. Outcome of the annual review Include a summary of the substantive progress of the programme support in relation to the pre-established indicators, drawing on the outcome of the tripartite review. See 7.3.3 on tripartite reviews. Annexes Include annexes as needed. The Supplemental Provisions to the Project Document must be included if the country has not signed the SBAA (see section II subsection G above). The annexes may also include job descriptions of key persons and agreements established by the designated institution, such as the Standard Letter of Agreement between UNDP and the Government for the provision of support services (see annex 6C), the Standard Project Cooperation Agreement between UNDP and the NGO for NGO execution (see annex 6E), and copies of letters of agreements between the designated institution and United Nations agencies (see annex 6B).



5.1.2 Project document format Section A – Context This section is based on information gathered during the stages of defining problems and identifying solutions. It should include: (a) The development problem that is being addressed. Include gender and environmental aspects of the

problem and measurable indicators of the problem that can be used to show progress towards reaching the solution;

(b) Previous experiences and lessons learned by national and international partners; (c) The development objective: the overall goals set by the government to address the development

problem. In this section, consideration should be given to stating what the expected impact will be if the development objective is successfully achieved;

(d) Strategy: how the development objective will be reached; (e) Beneficiaries: target groups, disaggregated according to gender and other variables, such as

indigenous groups, where relevant; (f) The regulatory framework, such as laws and the major actors (government departments, civil

society); (g) National resources: what national human and financial resources are committed to the achievement of

the goals of the project. Section B– Strategy for use of UNDP resources This section includes the outcome of the work on identifying alternative strategies (4.2.5). It describes (a) How the project relates to the UNDP mandate, the recommendations of global summits and

conferences, and the CSN, UNDAF and/or CCF; (b) How it was decided which aspects of the problem would be addressed through the UNDP intervention; (c) How UNDP resources are going to be used towards achieving the solution to the problem; (d) The outcomes of the capacity assessment, where applicable. Section C – Immediate objectives, outputs, indicators, and activities This section, in accordance with 4.2.7 and 4.2.12, contains: (a) The immediate objectives to be achieved through UNDP intervention. State the time frame and

measurable indicators for the achievement of each immediate objective (the outcome), as well as the target beneficiaries in terms of socio-economics, geography and gender;

(b) The outputs, defined in measurable terms and organized according to each immediate objective. State the indicators to monitor progress towards producing the output. Table 2 in the PSD format may be used to record this information;

(c) The activities that will be carried out in order to produce the outputs. State when the activity begins and ends, who is responsible for carrying it out, and which output it helps to produce. The activities are usually incorporated in an annual work plan, see section I of the project document format below.



Project document format (continued) Section D - Inputs Specify the UNDP inputs that will be needed to carry out each activity, how much they are expected to cost and who is responsible for providing them. To organize the inputs according to the activities that they support and the applicable budget lines, table 4b of the PSD format may be used. For UNDP policy on inputs, see 4.3. For how to classify inputs and prepare budgets, see 5.2. For management of inputs, see 6.4. The inputs in kind that will be provided by the national institution receiving support must also be specified, as well as any cash counterpart contribution (GCCC – see 5.2.8). Section E - Risks and Prior Obligations In this section, in accordance with 4.2.13 and 4.2.14, state: (a) The risks and steps taken to minimize them; (b) The prior obligations or conditions that must be met before UNDP can sign the document or before

UNDP can begin to provide support with a given component. Section F – Management This part, drawing on 4.2.11, describes: (a) The roles and responsibilities of all institutions involved; (b) The composition of the programme team and who will be responsible for doing what and when; (c) The arrangements for preparing and updating work plans; (d) The mechanisms for sound financial accounting and timely and accurate reporting; (e) The agreements between the designated institution and United Nations agencies. The agreements

are attached as annexes to the PSD, where available. (f) The internal and external coordination mechanisms, such as a steering committee with

representatives of those institutions relevant for the proper functioning of the national programme and the external support, must be specified.

(g) The audit arrangements: see 6.8.2 Section G - Monitoring and Evaluation This part, drawing on 4.2.12, includes: (a) The mechanisms that will be used to monitor and evaluate the project; (b) The schedule for when these monitoring actions have to be carried out and who is responsible, e.g., for

preparing reports and convening meetings; (c) The resources allocated for substantive review meetings among stakeholders at least once a year to

revalidate or adjust the objectives, outputs, activities or inputs; (d) How the work plan and budget will be updated. (e) GEF projects must also respond to the additional monitoring requirements of the annual Project

Implementation Review (PIR). (Refer to GEF M&E Info Kit [http://www.undp.org/gef/m&e])



Project document format (continued) Section H - Legal Context 1. If the country has signed the Standard Basic Assistance Agreement (SBAA), the following standard text

is quoted:

“This project document shall be the instrument referred to as such in Article 1 of the SBAA between the Government of (country) and UNDP, signed on (date).” For a list of SBAA signed with governments, see circular UNDP/LEG/SBA/Listing98/1.

2. If the country has not signed the SBAA, the following standard text is quoted:

“The project document shall be the instrument envisaged in the Supplemental Provisions to the Project Document, attached hereto.”

Section I - Work plan In this section, the work plan: (a) Shows the activities to be carried out in relation to each output over a period of at least twelve months. It

should be updated at least once a year; (b) Is prepared by the designated institution in consultation with the other main stakeholders; (c) May be prepared by using table 3 of the PSD. Section J – Budgets In this section: (a) The project budget is prepared in accordance with the procedures set out in 5.2; (b) Table 4(a) of the PSD may be used to organize the input data into the form of an input-output budget. When table 4(a) is prepared using the PSD software, three additional tables can be generated: (a) Table 4(b), which is a consolidated budget by source of funds; (b) Table 4(c), which shows the budgets according to each responsible institution; (c) Table 4(d), which shows the budget according to output. The government’s contribution in kind is presented in the form of table 1 of the PSD (annex 5A) or in the UNDP budget format. Any GCCC budget (see 5.2.8) is also included. Annexes Include annexes as needed. The Supplemental Provisions to the Project Document must be included if the country has not signed the SBAA (section H above). The annexes may also include job descriptions of key persons and agreements established by the designated institution, such as the Standard Letter of Agreement between UNDP and the Government for the provision of support services (see annex 6C), the Standard Project Cooperation Agreement between UNDP and the NGO for NGO execution (see annex 6E), and copies of letters of agreements between the designated institution and United Nations agencies (see annex 6B).



5.1.3 Programme and project documentation for interventions in

countries in special development situations 1. In an emergency situation, It may not be possible to complete the

standard project document due to a lack of information, the need to respond quickly or other reasons dictated by circumstances. In such cases, the resident representative, on the recommendation of the local PAC, may disregard those sections of the project document that may not be applicable to the special situation or for which information is not available.

See 5.1.2 for the project document format.

2. If the approved project lasts for more than nine months, a standard project document must be completed to reflect the change in focus of the activity from immediate response to longer-term support, including capacity development.

All expenditures and commitments must be in accordance with UNDP Financial Rules and Regulations.

5.2 Preparing budgets

5.2.1 Format 1. A standard budget format is used for the UNDP contribution to

programmes and projects. The format includes budget lines for the different categories of inputs and columns showing the annual expenditures together with the cost of administrative and operational services (AOS), where applicable.

The government contribution to the programme or project may also be presented in this format.

2. The FIM computer software contains the budget format and enables programme managers to prepare and revise budgets. In cases of programme support document budgets, it is recommended that table 4(a) of the PSD (Budget by Objective and Output) be completed before input of data into the FIM. Enter data using the budget line codes in 5.2.5 below. Additional budget lines beyond those in 5.2.5 are currently in use, as can be seen in the FIM software.

Table 4(a) is not included in the current version of the FIM software. The additional lines may continue to be used until further notice.

3. Budgets for UNDP-GEF projects must fully conform to UNDP standard budgeting formats, categories and codes. An output-based budget for GEF projects must be presented at the appraisal stage, which is conformed to a standard UNDP budget format when the proposal is converted into a project document.

Budget and financial information for GEF financed projects, including actual delivery and expenditure data, may be made available for public disclosure either in publications or on the GEF web site.



5.2.2 Budget lines

1. For effective management and for the purposes of reporting and analysis, inputs must be budgeted according to the appropriate component and line. UNDP-financed inputs are budgeted using the best estimate of the likely cost. In a few cases, a standard cost formula is applied, for example, international consultants under SPPD and STS.

See 6.4 for information on how to manage inputs. Section 5.2.7 below explains how to decide which budget lines to use.

2. Project budgets should be prepared at the sub-line level. The first sub-line is 01, hence “00” should never be used as a sub-line in preparing budgets and recording expenditures.

For example, 11.01 to 11.97 for each consultant recruited under a project.

5.2.3 Administrative and operational services

1. As explained in 3.7, AOS is an arrangement that partially reimburses certain United Nations agencies for the costs associated with the procurement and delivery of inputs for UNDP-supported programmes and projects. The cover page of the PSD or project document must reflect both programme or project funds and AOS inputs (against the appropriate source of funds codes).

See annex 3A for a list of the agencies that may receive AOS funds.

072 The AOS costs are negotiated during formulation. The level of reimbursement of AOS is up to 10 per cent of the programme or project expenditures incurred by the agency. This additional sum should be recorded in the AOS column of the budget.

The AOS funding facility (line 1.6) will be discontinued as of January 2001. However, the AOS budgeting procedures will remain in effect.

3. The United Nations agency that provides the services is identified in the agency column of the budget. If more than one United Nations agency provides services, separate budget pages are prepared to show the services provided by each agency. This is additional to the main consolidated budget.

The United Nations agency receives AOS whether it is the designated institution or is in the role of a contractor under another management arrangement. See 6.2

4. When the programme or project support is financed from TRAC 1 or 2 or line 1.2 (regional), the AOS costs will usually be met from line 1.6 of the UNDP financial framework. However, line 1.6 resources may be accessed only by the United Nations agencies that participate in the support-cost arrangements.

Governments are not entitled to payment for managing their development assistance.

5. Line 1.6 resources are sufficient to defray the AOS costs of approximately 50 per cent of the total PSD and project budgets funded from a country’s TRAC 1 and TRAC 2 allocation, as explained in 3.6. Once line 1.6 resources have been exhausted, the AOS costs must be charged against the source of funds that finances the PSD or project itself.

6. Cost-sharing. When AOS services are financed from cost-sharing sources, the AOS costs are charged in the same proportion as the total cost-sharing contribution bears to the total contribution. (See sample budget below.)



7. Trust funds. The 10 per cent rate also applies to trust funds unless another rate is agreed upon among the parties. AOS is charged to the same source of funds as the trust fund itself.

8. Financial Reporting. The participating United Nations agency must prepare quarterly delivery reports, including expenditures on AOS.

9. NGO execution fee. When an NGO incurs costs associated with the procurement and delivery of inputs financed by UNDP, it may be reimbursed through an execution fee. The following procedures apply:

(a) The amount of the fee is based on an estimate of the actual cost to

the NGO of the work involved: the rate of reimbursement to United Nations agencies (10 per cent) may serve as a guide;

The execution fee (budget line 94) is payable to NGOs only. AOS funds are not available for reimbursing NGOs for administrative services.

(b) The fee is charged to the same source of funds as the project itself; Normally, the fee is released in instalments along with the quarterly

(c) A schedule of payments of the NGO execution fee is specified in the section of the PSD or project document on UNDP inputs.

advances.

10. Country office support services and direct execution. When the UNDP country office incurs costs for carrying out activities, such as procurement, on behalf of the designated institution, or when the country office itself is the designated institution, the costs should be included in the PSD or project budget. The funds are transferred to the UNDP country office budget periodically, according to the rate of implementation of the PSD or project.

For further information about country office support services and direct execution, see 6.2.

11. Global Environment Facility (GEF). For GEF projects under national execution, the costs incurred by the country office are charged to budget line 45.03. For GEF projects under United Nations Agency or NGO execution the usual procedures apply. In the case of GEF projects executed by UNOPS, the rate is 8 per cent, except for projects over $3 million, where the rate is negotiated on a case-by-case basis.

The arrangements between GEF and UNOPS are contained in an agreement signed in February 1995.

5.2.4 Work months 1. The work months column of the budget is used to record the duration

of national and international personnel services. In SPPD and STS budgets, work months are expressed in one-tenth increments. See 3.5 and 3.6 for detailed information on SPPD and STS budgets.



5.2.5 UNDP Budget line codes

Component budget line and category Component Total 010 Personnel 19

011 International Consultants 013 Administrative Support 014 United Nations Volunteers 015 Monitoring and Evaluation 016 Mission Costs 017 National Consultants

020 Contracts 29

021 Subcontract A …. 027 Subcontract G

030 Training 39

031 Fellowships 032 Other Training

040 Equipment 49

045 Equipment

050 Miscellaneous 59 052 Reporting Costs 053 Sundries 054 Direct Costs (GEF/Capacity 21 only) 057 For CDF-HQ use only

060 Support for Technical Services (STS) 69 See 3.6 for details. 070 Micro-capital grants 79

071 Micro-capital grants - credit 073 Micro-capital grants - other

080 Miscellaneous (UNRFNRE only) 89 090 Execution Fee 093 For UNV-HQ use only

094 NGO execution fee 099 PSD/Project Total

100 Cost-sharing 101 Programme Country Government 102 Financial Institutions 103 Third Parties 104 CCF 105 Income Generated from Project Activities



5.2.6 Illustrative PSD/Project Budget

Project number : ABC/98/006 Revision code : B Project title : Rural Employment Source of Fund : 01 Management Arrangement : National Execution Status : Approved Designated Institution Rural Development Department

CMBL Description Impl.

Agent

Total w/m $ AOS

Year 1 1999 w/m $ AOS



10 PROJECT PERSONNEL

11 International Personnel

Consultants 11-01 Marketing ILO 6.0 60,000 6,000 3.0 30,000 3,000 3.0 30,000 3,000 - - - 11-02 Management ILO 8.0 189,000 18,900 6.0 60,000 6,000 6.0 63,000 6,300 6.0 66,000 6,600 11-03 Other ILO 12.0 126,000 12,600 3.0 30,000 3,000 6.0 63,000 6,300 3.0 33,000 3,300 11-99 Subtotal ILO 36.0 375,000 37,500 12.0 120,000 12,000 15.0 156,000 15,600 9.0 99,000 9,900

13 Administrative support

Administrative Assistant NEX 36.0 36,000 12.0 12,000 12.0 12,000 12.0 12,000

15 Monitoring and Evaluation NEX 30,000 10,000 10,000 10,000

16 Mission costs ILO 20,000 2,000 10,000 1,000 5,000 500 5,000 500

17 National Professionals

17-01 Marketing NEX 33.0 103,000 - 9.0 27,000 - 12.0 36,000 - 12.0 40,000 - 17-02 Management NEX 33.0 103,000 - 9.0 27,000 - 12.0 36,000 - 12.0 40,000 - 17-99 Subtotal NEX 66.0 206,000 - 18.0 54,000 - 24.0 72,000 - 24.0 80,000 - 19 Component total 667,000 39,500 206,000 13,000 255,000 16,100 206,000 10,400

20 CONTRACTS 21 Contract A ILO 80,000 8,000 20,000 2,000 30,000 3,000 30,000 3,000 22 Contract B NEX 60,000 - 15,000 - 30,000 3,000 15,000 - 29 Component total 140,000 8,000 35,000 2,000 60,000 3,000 45,000 3,000

30 TRAINING 31 Fellowships ILO 31-01 Marketing ILO 30,000 3,000 10,000 1,000 - - - - 31-02 Management ILO - - - - 10,000 1,000 - - 31-03 Management ILO - - - - 10,000 1,000 - - 31-99 Subtotal ILO 30,000 3,000 10,000 1,000 20,000 2,000 - - 32 Other Training NEX 32-01 Workshops (A) NEX 60,000 60,000 - 32-02 Workshops (B) NEX 180,000 - 120,000 60,000 32-99 Subtotal NEX 240,000 60,000 120,000 60,000 39 Component Total 270,000 3,000 70,000 1,000 140,000 2,000 60,000

40 EQUIPMENT 45-01 Expendable 60,000 20,000 20,000 20,000 45-02 Non-expendable 200,000 20,000 100,000 10,000 60,000 6,000 40,000 4,000 45-99 Subtotal 260,000 20,000 120,000 10,000 80,000 6,000 60,000 4,000 49 Component Total 260,000 20,000 120,000 10,000 80,000 6,000 60,000 4,000

50 MISCELLANEOUS 52 Reporting costs 52.01 Reports NEX 9,000 2,000 3,000 4,000 52.02 Reports ILO 9,000 900 4,000 400 5,000 500 59 Component Total 18,000 900 2,000 7,000 400 9,000 500

70 MICRO-CREDIT

72 Other micro-capital grants NEX 50,000 50,000 - -

79 Component Total 50,000 50,000

90 TOTAL 99 Project Total 1,405,000 71,400 483,000 26,000 542,000 27,500 380,000 17,900 100 COST-SHARING

103 Government cost-sharing 475,820 24,180 163,574 8,805 183,555 9,313 128,691 6,062

109 Component Total 475,820 24,180 163,574 8,805 183,555 9,313 128,691 6,062

Country Office Administration 15,000 5,171 5,766 4,043

Total cost-sharing 515,000 177,550 198,654 138,796

999 Net UNDP contribution 929,426 47,220 319,426 17,195 385,445 18,187 251,309 11,838

a/ Based on the agreed rate of reimbursement of 3 per cent of the cost-sharing contribution



5.2.7 Budget components

BL 10. Personnel 1. The following definitions apply:

(a) International Consultants [BL 11] are normally persons recruited from abroad who are not citizens of the programme country;

See 4.3.1 on personnel input policies and 6.4.2 on management of personnel.

(b) Associate experts [BL 11] are junior consultants, normally nationals of developed countries who are provided by that country at no cost to the programme or project;

(c) Administrative Support Staff [BL 13] are persons recruited to support the logistics of a programme or project when the government is unable to do so. Examples are: accountants, administrative assistants, secretaries and drivers;

(d) United Nations Volunteers (UNV) [BL 14] are volunteer development workers who serve the entire United Nations system. International and national specialists and field workers experienced in community and participatory development participate in the UNV programme. All expenses relating directly to the recruitment, remuneration and repatriation of the UNVs are charged against budget line 14;

Provisions for supplies, equipment, monitoring and evaluation, as well as official travel of UNVs, are charged against the corresponding budget line. For more information contact UNV headquarters.

(e) Monitoring and Evaluation [BL 15] is for travel for the purpose of monitoring and evaluating UNDP-supported programmes or projects. It may include travel by representatives of the Government coordinating authority, the designated institution, the UNDP country office or UNDP headquarters.

Be sure to provide adequate funds for monitoring and evaluation.

(f) Mission costs [BL 16] include travel for developing and implementing programmes and projects;

(g) National consultants [BL 17] are nationals of the programme country recruited locally.

BL 20. Contracts 2. The following definitions apply:

(a) Contracts are agreements between one institution and another institution or private firm to carry out specific activities;

See 4.3.2 on contract input policy and 6.4.3 on management of contracts.

(b) UNDP may exceptionally pay for rental of office space or other facilities required for programme or project activities, when the programme country institution receiving assistance is unable to do so. Such arrangements are handled as a contract.



BL 30. Training

1. The following definitions apply:

(a) A Fellowship [BL 31] is a specific training activity for a qualified individual to pursue an academic programme of study, usually outside the programme country;

See also 4.3.3 on training input policies and 6.4.4 on organizing training.

(b) Other Training [BL 32] is the participation by a group of people in short-term courses, seminars, symposia, workshops, and other learning activities, usually within the programme country. This category includes study tours, which are visits by selected individuals to counterpart institutions, usually in other countries, to observe activities and learn from an exchange of experience;

2. The organization of fellowships and study tours is complex since it often entails access to training networks, numerous administrative steps, foreign exchange and travel. For this reason, those United Nations agencies that have long experience in this area usually undertake these activities on behalf of UNDP.

BL 40. Equipment [BL 45] 1. The following definitions apply:

(a) Equipment refers to manufactured and semi-manufactured goods, raw materials and other supplies that are needed to produce the outputs of a programme or project. The budget provision should include freight and insurance costs;

See 4.3.4 on equipment input policies, 5.5.3 on approval of large equipment components, and 6.4.5 on management of equipment.

(b) The operation and maintenance of equipment is normally covered by the programme country institution that is receiving assistance. In exceptional cases where neither the government nor the institution can meet this obligation, the costs may be met by UNDP and charged to this line;

(c) The following categories of equipment are included under budget line 45.

i. Expendable equipment. Refers to items valued at less than $1,000;

ii. Non-expendable equipment. Refers to items valued at $1000 or more. These items must be listed separately in the Inputs section of the PSD or project document and in PSD or project revisions when such equipment items are being modified.



BL 50. Miscellaneous

(a) Reporting costs [BL 52] include the costs of producing required reports when the report is prepared by the designated institution. The costs for reports prepared by a contractor should be included in the contract component [BL 20];

(b) Sundries [BL 53] include miscellaneous items, such as postage and telephone charges, when the government is unable to meet these costs. Sundries also include modest hospitality expenses;

(c) Direct Costs [BL 54] include certain country-office costs incurred in supporting programmes and projects of GEF and Capacity 21 only.

Charges against this line constitute extrabudgetary income for the country office.

BL 60. Support for Technical Services (STS) 1. STS covers the cost of technical services provided by a participating

United Nations agency. A separate STS budget and cover page must be prepared for each agency providing services.

For details, see 3.6.

BL 70. Micro-capital grants 1. The following must be observed:

(a) Micro-capital grants – credit [BL 71] includes all micro-capital

grants used for financing credit activities;

See 4.3.5 on micro-capital grant policy and 6.4.6 on management of micro-capital grants.

(b) Micro-capital grants – other [BL 72] includes all micro-capital grants not used for financing credit activities, such as grants to environmental organizations or civil society organizations for advocacy activities.

BL 80. Miscellaneous (UNRFNRE only) BL 90. Execution Fee 1. The NGO execution fee [BL 94] includes NGO charges relating to

administrative and operational overhead costs. NGO-executed programme support and projects cannot access the AOS facility.

For information on the United Nations Revolving Fund for Natural Resource Exploration contact the UNRFNRE Director at UNDP headquarters. For more information on budgeting for AOS, see 5.2.3 para. 8. See also 6.2.4 on NGO execution.

BL 99. PSD/Project Document Total. 1. This is the total cost of all budget components (BL19 – BL98).

See 3.10 for details on cost-sharing procedures.



BL 100. Cost-Sharing Contributions

1. The following conditions apply: (a) The cost to UNDP of managing a cost-sharing contribution must be

included in the budget. The management cost is determined prior to the signing of a cost-sharing agreement. The cost is often a flat rate of 3 per cent.

(b) The following lines are used where there is a cost-sharing contribution:

i. Programme country government [BL 101];

ii. Financial institutions [BL 102] include World Bank loans and regional bank loans and grants to the programme country;

iii. Third parties [BL 103] include bilateral donors and private entities (including non-governmental organizations).

iv. CCF [BL 104] covers "blanket" contributions to Country Cooperation Frameworks from donors (usually programme country governments) for which specific projects or programmes have not been designated as well as interest income earned from unused cost sharing balances.

v. Income Generated From Project Activities [BL 105] covers all income generated from project activities with respect to recurrent events, regardless of amounts, or one-time events over $2,500.

5.2.8 GCCC budgets 1. Budgets for government cash counterpart contributions are attached to

the PSD or project document budget and are normally in local currency. The budget for GCCC uses the same format of rows and columns as the PSD or project document budget, as explained above. The AOS rate is a flat 3.5 per cent. It is also expressed in local currency and is payable by the government as part of the GCCC contribution.

The GCCC budget is separate from the government’s contribution in kind. For GCCC procedures, see 3.12.

5.3 Preparing the cover page for a PSD or project document

5.3.1 Introduction

1. The PSD/PD cover page includes vital data on a programme or project. It must be completed in full. Use the UNDP Financial Information Management (FIM) system. The FIM includes pop-ups which will make it easy for you to find the appropriate data.



5.3.2 Cover page data

The cover page contains the following standard information: 1. The PSD/project number. The PSD/project number is designed as a

six-field code - (CTY/YR/NUM/REV/SF/DI):

(a) CTY consists of a three-letter code to denote the country. For example, AFG stands for Afghanistan;

A list of the three-letter codes is available in the Programming Manual Reference Centre on the UNDP Intranet and in the FIM reference tables, pages 9.65 to 9.70.

(b) YR consists of the last two digits of the calendar year when the PSD project document was approved and entered into the master ledger in the UNDP country office. Thus, 1997 is shown as 97;

NOTE: Year 2000 is 00.

(c) NUM has three digits denoting the serial number of the PSD/project document for a given country in a given year. The first PSD or project document in a given year has the serial number 001, the second one 002, and so on;

(d) REV is a single-letter indicating the sequence (A – Z) of revision of the PSD or project’s budget. The first budget of a PSD/project document is “A”. When it is revised the first time, it becomes “B”. The next revision makes it “C”, and so on;

Commonly used sources of funds (SOF) codes are: 01 – TRAC 1.1.1 and TRAC 1.1.2 03 – AOS for TRAC 1.1.1, TRAC 1.1.2 and

(e) SF consists of a two-digit number indicating the source of funds (SOF). A list of SOF codes is provided in the FIM reference tables, pages 9.29 to 9.32.

line 1.2 07 – TRAC 1.1.3 08 – SPPD 09 - STS 14 - TCDC

(f) DI is a two-digit number. This number indicates the type of management arrangement and identifies United Nations agencies serving as the designated institution.

A list of agency codes is available in the Programming Manual Reference Centre on the UNDP Intranet and in the FIM reference tables, pages 9.77 to 9.84.

2. PSD/Project Title. Provide the name of the national programme that is being supported through the PSD or the name of the project.

For example, National HIV/AIDS Control Programme

3. Starting Date. Specify the month and year when the activities envisaged in the PSD/project document will begin.

4. Ending Date. Specify the month and year when the activities envisaged in the PSD/project document will end.

5. Management Arrangements. Specify national execution, United Nations agency execution, NGO execution, or direct execution (where authorized).

See 6.1 and 6.2 on selecting the management arrangements.

6. Designated Institution. State name of institution responsible for managing the programme or project.



7. Implementing Agency or Agencies. Provide the name of the United

Nations implementing agency or agencies, that have agreed to carry out activities within a nationally-executed programme or project.

See policies and procedures on administrative and operational services (AOS) in 3.7 and 5.2.3.

8. Sector and Subsector Classification. Specify the applicable ACC and DCAS sector/s and subsector/s.

For the complete ACC and DCAS list of sectors and subsectors, see the Programming Manual

9. Areas of Focus. Specify one principal focus area and up to two secondary focus areas, using the list of “Areas of Focus” given in the Programming Manual Reference Centre on the UNDP Intranet and in the FIM reference tables, pages 9.3 to 9.4.

Reference Centre on the UNDP Intranet or the FIM reference tables, pages 9.5 to 9.10.

10. Type of Intervention. Specify the type of intervention, choosing the primary and secondary purposes from the list given in the Programming Manual Reference Centre on the UNDP Intranet or the FIM reference tables, page 9.13.

11. Target Beneficiaries. Specify one principal group of beneficiaries and up to two secondary groups of beneficiaries, using the “Target Beneficiaries” list given in the Programming Manual Reference Centre on the UNDP Intranet and in the FIM reference tables, pages 9.11 to 9.12.

These figures should tally with the totals given on the budget page.

12. Funding. Specify the total budget under the different sources of funds, such as TRAC 1, TRAC 2, TRAC 3, STS, AOS, and cost-sharing. GEF projects also show parallel financing and the executing agency fee on the project cover page.

For GEF, it is important to show parallel financing as part of the overall co-

13. Brief Description. Describe briefly the national programme or national context, and explain how UNDP intervention will support the achievement of the national objectives. Indicate as concretely as possible what difference UNDP intervention will make.

financing that is leveraged against the GEF contribution.

14. Signatures. Obtain signatures on behalf of the government, the designated institution and UNDP, denoting the approval of the PSD or project document.



5.3.3 Sample cover page for PSD or project document

UNITED NATIONS DEVELOPMENT PROGRAMME Programme of the Government of ABC land

Programme Support Document PSD/Project number: ABC/98/006/A/01/99 PSD/Project title: Rural Employment PSD/Project short title: N/A Estimated start date: 01/01/98 Estimated end date: 31/12/01

Management arrangement: National Execution Designated institution: Rural Development Department United Nations implementing agency: ILO Programme support/project site XYZ Country Beneficiary countries: ABC land

Brief description:

On behalf of: Signature Date Name/Title Government Designated Institution UNDP

Summary of UNDP and cost-sharing inputs [as per attached budgets] UNDP: $ TRAC (1 & 2) 929,180 TRAC (3) - STS - Other - Cost-sharing: Government 475,820 Financial institution - Thirdparty - Total 1,405,000 Administrative and operational services (where applicable) SOF 03 47,200 Cost-Sharing 24,180 Total: 71,400 Country Office Administrative Cost 1,500 TOTAL 1,491,400

Classification information ACC sector and subsector: DCAS sector and subsector: Government sector and subsector: Primary areas of focus/sub-focus: Secondary areas of focus/sub-focus: Primary type of intervention: Secondary type of intervention: Primary target beneficiaries: Secondary target beneficiaries:

Government inputs: (local currency) (in kind) $ (in cash) $

LPAC review date: BPAC review date:[where applicable] Programme officer:



5.4

Appraisal

5.4.1 Purpose and content

1. Appraisal is the critical analytical review of the design and formulation of the programme or project that leads to its approval or rejection. During appraisal, the UNDP country office and stakeholders ensure that the programme or project has been designed in a sound and results-oriented way. Appraisal is based on the considerations for quality programming that apply to all phases of the programming process and are presented in annex 2F.

2. All programmes or projects funded by UNDP must be appraised before approval. The appraisal consists of the review of the draft PSD or PD, as well as the logframe matrix if one was prepared during the formulation process. Persons who were not directly involved in formulation must participate in the appraisal.

Substantive revisions of programmes and projects must be similarly appraised. See 6.6.2.

5.4.2 Procedures 1. UNDP arranges a formal meeting of the local PAC, chaired by UNDP

and with the participation of United Nations colleagues, representatives from the government and the national institutions involved in the programme or project, and representatives of other donors, civil society and target groups.

For further information about local PACs, see 5.5 below and 2.5.3.

2. Through the minutes of the meeting, the LPAC advises the resident representative on the soundness of the design of the programme or project. Minutes of PAC meetings must be maintained on file for later review by audits, country review and evaluation teams, etc.

The LPAC meeting is guided by the considerations for quality programming, see annex 2F.

3. It is recommended that the country office also hold one or more internal pre-PAC meetings, involving UNDP country office staff and selected resource persons, to assist in ensuring the best possible formulation process.

5.5 Approval

5.5.1 Purpose

1. The approval of a PSD or project document constitutes a commitment to implement that programme or project. It is formalized through the signing of the document by representatives of UNDP, the government, and the designated institution.



5.5.2 Approval authority and accountability

1. The authority to approve programmes and projects at the country level

will be specifically delegated to the resident representative by the director of the regional bureau when a country cooperation framework has been approved by the Executive Board.

2. In exercising this authority, the resident representative will be guided by the recommendation of the LPAC. The resident representative is accountable to the Administrator through the director of the regional bureau for the quality and sustainability of UNDP interventions and for ensuring that UNDP policies and procedures have been fully complied with. Any divergence between the recommendations of the LPAC and the decision of the resident representative should be recorded on file.

3. Exceptions. The resident representative does not have authority to approve a PSD or project document in the following cases, unless he/she has received specific authorization from the regional bureau director: (a) When a PSD or project document includes personnel who would

be supervised by the resident representative or another member of the UNDP office staff;

See 5.6.1 on programme logistic support.

(b) When support to an infrastructure programme or project is proposed;

See 4.3.4 on infrastructure-related proposals.

(c) When the amount to be spent on micro-capital grants, out of TRAC funds, would increase the overall amount spent on micro-capital grants beyond 10 per cent of the country’s TRAC allocation for the CCF period;

See 4.3.5 for policies on micro-capital grants.

(d) When direct execution by UNDP is proposed.

See 6.2.4 for information on direct execution.

4. The maximum period covered by a PSD or project document is seven years. A new phase with a new document must be prepared if support for a longer period is needed.

5. The authority to approve PSDs and project documents applies to TRAC 1, TRAC 2, SPPD, STS and AOS funds; approvals may not exceed the funds released by headquarters for those funds for the given year/s. The authority also applies to cost-sharing funds when a standard cost-sharing agreement is used (see 3.10 for more information on cost-sharing and Financial Rules 104.11, 104.12 and 104.13). For government cost-sharing, the standard PSD or project document with a payment schedule constitutes the legal basis for cost-sharing. The authority to approve programmes and projects financed from TRAC-3, trust funds and other sources of funds may be delegated on a case-by-case basis.



6. No UNDP official may sign a PSD or project document that singles out by name a private company or NGO to carry out activities and receive funds from UNDP, unless a waiver of competitive bidding has first been obtained.

See 6.5.3.5.

7. For projects funded with GEF resources, final accountability for project management rests with the GEF. In this regard, project work plans, key management decisions, budget revisions, APRs, TPRs and project evaluations require oversight of the GEF regional coordinator in addition to the role played by the designated institution and UNDP country office.

5.5.3 Procedures for the approval of programmes and projects with large

equipment components 1. In cases where the equipment component exceeds 50 per cent

(including cost-sharing) of the budget or costs more than $1 million, the country office must make a critical assessment of the component.

These procedures also apply where equipment is procured under the contract component. See 4.3.2.

2. The country office prepares a report that outlines:

(a) Conformity with UNDP policies, as indicated in 4.3.4, and the comparative advantages of UNDP;

(b) The capacity of national authorities to use the equipment, maintain the equipment, and replenish equipment and sustain activities, for which the equipment was purchased, after the termination of UNDP intervention;

The resident

(c) If capacity gaps are identified in (b) above, an explanation should be provided as to i) the role UNDP will play during the lifetime of the programme or project to cover the gaps, and ii) how and when these responsibilities will be handed over to the national authorities;

representative is responsible for monitoring and reporting on the implementation of the capacity-building measures and the transferring of responsibilities to

3. The LPAC reviews the report. The resident representative communicates the results of the review and sends the PSD, project document or substantive revisions, together with the report, to the regional bureau.

national authorities. The resident representative is also responsible for ensuring that the annual and country reviews address these matters.

4. The Director of the regional bureau must report to the Associate Administrator quarterly on all the large equipment approvals. The report should be brief (two pages maximum) and provide both statistical and analytical information on: (a) The number of PSDs and project documents with large

equipment components that have been approved during the quarter;

(b) Assessment of the capacity of the national authorities to use, maintain and replenish the equipment, as well as to sustain the activities for which the equipment was purchased, once UNDP



activities for which the equipment was purchased, once UNDP intervention has ended.

5.5.4 Dissemination of information

1. The resident representative ensures that approved programmes and

projects receive wide publicity, particularly among stakeholders, in conformity with the UNDP policy on disclosure of information.

For the policy on disclosure of information, see the Programming Manual Reference Centre on the UNDP Intranet.

5.5.5 Advance authorization 1. Purpose. Advance authorizations permit designated institutions to

enter into commitments and incur expenditures without delay in accordance with a PSD or project document or revision document that has been finalized but has not yet been signed by all the parties. This may be due to bureaucratic delays in securing such signatures.

2. Policies:

(a) Duration. An advance authorization is valid for 60 days only. It must be replaced with a fully signed PSD or project document or revision within 60 days.

(b) Appraisal. The resident representative must be satisfied that the formulation and appraisal processes for the full programme or project have been completed and that all UNDP programme policies have been complied with prior to signing the advance authorization.

3. Procedures. The key procedures on advance authorizations are:

(a) The UNDP country office prepares the advance authorization cover page according to the format given below. The budget for the full PSD or project document or revision document is attached to the cover page;

(b) The resident representative signs the advance authorization after ascertaining that the government and the designated institution agree to it;

(c) The advance authorization is included in the next monthly approval report;

(d) The fully signed PSD or project document or revision document supersedes the advance authorization and carries the sequential revision code letter following that used for the advance authorization.



5.5.6 Format for advance authorization of a PSD, project document or revision document

UNITED NATIONS DEVELOPMENT PROGRAMME

ADVANCE AUTHORIZATION DOCUMENT COUNTRY: _________________________________

TITLE: _________________________________

PSD/PROJECT NO.: __________________________________

The __________________________________________, the designated institution for the above programme or project, is hereby authorized to enter into commitments and incur expenditure in accordance with the attached budget. This advance authorization will be superseded by the PSD/project document or revision document after its full signature, which will be accomplished within 60 days of the date of authorization. ____________________________ ________________________ Resident Representative Date



5.6 Programme and project support services

5.6.1 Programme logistical support 1. Definition. Programme Logistical Support (PLS) is a project or a

component of a project or PSD that provides logistical support to programmes and projects.

Note. The procedures outlined in 5.6.1 also apply to other types of support provided to programmes and projects e.g., technical support.

2. Policy. Note the following:

(a) PLS may be used in support of programmes and projects when it serves either to realize economies of scale in logistic support or to support programme or project identification and formulation missions and provide logistical support in advance of full programme or project operations;

(b) PLS must not be used to provide extra resources to the country office for administrative functions.

3. Types of PLS inputs. Programme logistic support includes the following types of inputs:

(a) Personnel [BL 10]. Examples are: accountants, secretaries

and drivers. All personnel posts are recorded in a table attached to the PSD or project document. Job descriptions must be annexed;

(b) Premises [BL 20]. Examples are: rental of additional office space, storage sheds or garage space, and the cost of any necessary renovation or installation work;

(c) Equipment [BL 40]. Examples are: vehicles, computers, other office machines, office furniture and communications equipment, supplies, spare parts and operating costs. The equipment should conform to IAPSO country standards, where applicable. Identify in the PSD or project document any equipment that will be transferred to the government or to any other agency at programme or project financial completion.

See 6.4.5 on procuring equipment and on equipment transfer.

4. Procedures. Note the following:

(a) The country office prepares a proposal for PLS in the form of a standard project document or a component of a project or PSD;



(b) The proposal should include the justification for PLS and an estimate of the savings expected. It must identify the programmes and projects that the PLS is intended to support, estimate the volume of services that each is likely to require, and explain why these services can most efficiently and effectively be provided by UNDP, mentioning what alternatives were considered (for example, using a private contractor);

(c) The resident representative submits the proposal for PLS to the regional bureau. The regional bureau forwards the draft PLS proposal and revisions to BOM/Budget for clearance, and subsequently informs the country office of the decision.

5. Revision. In cases where the PLS is revised and new inputs are included, the above clearances must similarly be obtained.

6. Reimbursable services. PLS may include services to programmes and projects not funded by UNDP on the basis of full reimbursement by those programmes or projects.

7. Reporting. The resident representative must report on all PLS activities to the regional bureau with a copy to BOM/Budget on an annual basis by 30 September of each year. The report must include the following information:

(a) Latest budget revision;

(b) Staffing table;

(c) Inventory of non-expendable equipment; and

(d) A description and quantification of projects and programmes served and services provided.

5.6.2 Management service agreements 1. A management service agreement is an agreement entered into by

UNDP and a Government, bilateral or multilateral donor, or international financial institution, in which a United Nations agency provides managerial and administrative support to a donor’s or programme country’s programme or project, for which UNDP charges a fee.

See chapter 2 of the UNOPS Handbook for detailed information on MSAs.


Chapter 5 PROGRAMME SUPPORT DOCUMENTS AND PROJECT DOCUMENTS Page 30

Table 1: Funding of the national programme ANNEX 5A Sub-programmes; components;

Year 1

Year 2

Year 3-5

Total

Itemsa/ FR RE SOF Gap FR RE SOF Gap FR RE SOF Gap FR RE SOF Gap Sub-programme X Component 1 Item Item Total component 1

Component 2 Item Item Total component 2 Total Sub-programme X

Sub-programme Y Item Item Total Sub-programme Y

Total national Programme

Abbreviations: FR = financial requirements, RE=resources earmarked, SOF=sources of funds a/ Depending on the complexity of the national programme, there may be two or more sub-programmes. The same applies for components and items (activities).



Table 2: Objectives, outputs and monitoring indicators or benchmarks ANNEX 5B

PSD Number: CTY/YR/NUM Revision: F Date:

Objectives and Outputs Monitoring indicators or benchmarks for objectives and outputs

Codes Description Year 1 Year 2 Year 3 Year 4 Year 5

MS Management support

01 Describe output 1 of MS State monitoring indicators or benchmarks for output 1 of management support.

State monitoring indicators or benchmarks for output 1 of management support.



Completed.

T01 Describe programme support objective (PSO) 1 State monitoring indicators or benchmarks for PSO 1.

01 Describe output 1 of PSO1 State monitoring indicators or benchmarks for output 1 of PSO 1 for year 1.

State monitoring indicators or benchmarks for output 1 of PSO 1 for year 2.

Completed Completed Completed

02 Describe output 2 of PSO1 State monitoring

indicators or benchmarks for output 2 of PSO 1 for year 1.

…/…

T02 Describe programme support objective (PSO) 2 State monitoring indicators or benchmarks for PSO 2.

01 Describe output 1 of PSO 2 State monitoring indicators or benchmarks for output 1 of PSO 2 for year 1.




Completed

02 Describe output 2 of PSO 2 State monitoring

indicators or benchmarks for output 2 of PSO 2 for year 1.

…/…

03 …./….



Table 3: Work plan for the next 12 months ANNEX 5C

PSD Number: CTY/YR/NUM Revision: F Objective Output Activities and Management

Actions 03/99 04/99 05/99 06/99 07/99 08/99 09/99 10/99 11/99 12/99 01/00 02/00

T01 01 Activity 1 (for output 1 of PSO 1) a/ b/ XXXX XXXX XXXX XXXX XXXX XXXX XXXX Action 1: c/ 03/99 Responsibility: Action 2: 05/99 Responsibility: T01 01 Activity 2 (for output 1 of PSO 1) XXXX XXXX XXXX XXXX Action 1: 04/99 Responsibility: Action 2: 06/99 Responsibility: T01 02 Repeat for remaining outputs of

PSO 1

T02 01 Repeat for remaining PSOs and

for MS

a/ Describe the activity (e.g., survey basic needs) b/ Place Xs in this row to show period when activity is to be carried out c/ List the management actions relating to the activity and indicate the timing (e.g., Identify candidates – 03/99, Recruit consultant – 05/99). Also state the person or entity responsible for each action.



Table 4(a): Budget by objective and output ANNEX 5D

PSD Number: CTY/YR/NUM Designated Institution: Ministry of X (Govt.) PSD Title: Version/Status: Approved Revision: F

Year 1 Year 2 Year 3-5 Total Institution Budget AOS Budg

et AOS Budget AOS Budget AOS Sub-

Objective Output Description Responsible wlm $ $ wlm $ $ wlm $ $ wlm $ $ line

OBJECTIVE: Management Support Source of Funds: 01 TRAC Administrative Support Personnel 13.00 MS 01 Drivers…. Govt 23 11,000 0 24 11,500 0 35 20,000 0 82 42,500 0 13.01 Subtotal Administrative Support Personnel 23 11,000 0 24 11,500 0 35 20,000 0 82 42,500 0 13.99 Equipment MS 01 Vehicles/…. Govt 0 45,000 4,500 0 0 0 0 0 0 0 45,000 4,500 47.01 Subtotal Equipment 0 45,000 4,500 0 0 0 0 0 0 0 45,000 4,500 47.99 Objective Total: 23 56,000 4,500 24 11,500 0 35 20,000 0 82 87,500 4,500 399 OBJECTIVE: Description of PS Objective 1 Source of Funds: 01 TRAC Mission Costs 16 T01 01 Formulation Mission Y Govt 0 5,000 0 0 0 0 0 0 0 0 5,000 0 16.01 Subtotal Mission Code 0 5,000 0 0 0 0 0 0 0 0 5,000 0 16.99 Long Term National Professionals T01 01 National Consultants A & B Govt 8 11,000 0 20 24,000 0 0 0 0 26 35,000 0 17.01 Subtotal Long-Term National Professionals 8 11,000 0 20 24,000 0 0 0 0 26 35,000 0 17.49 Subcontract A 21 T01 02 Subcontract A Govt 0 0 0 0 35,000 0 0 0 0 0 35,000 0 21.01 Subtotal Subcontract A 0 0 0 0 35,000 0 0 0 0 0 35,000 0 21.99 Objective: Total 8 16,000 0 20 59,000 0 0 0 0 26 75,000 0 399 OBJECTIVE: Description of PS Objective 2 Source of Funds: 01 TRAC Long Term National Professionals 17 T01 01 National Consulant C Govt 7 12,000 0 7 12,000 0 3 5,000 0 17 29,000 0 17.02 Subtotal Long-Term National Professionals 7 12,000 0 7 12,000 0 3 5,000 0 17 29,000 0 17.49 Group Training T02 01 …/…. Govt 0 15,000 0 0 15,000 0 0 0 0 0 30,000 0 32.02 Subtotal Group Training 0 15,000 0 0 15,000 0 0 0 0 0 30,000 0 32.99


Chapter 6: OPERATIONS OF PROGRAMMES AND PROJECTS Page 1

Contents Page 6.0 OPERATIONS OF PROGRAMMES AND PROJECTS 6.1 Key policies 6.2 Management of programmes and projects 6.2.1 Selection of management arrangements 6.2.2 National execution 6.2.3 Agency execution 6.2.4 NGO execution 6.2.5 UNDP direct execution 6.3 Management support 6.3.1 UNDP country office support services 6.3.2 Cost-recovery by UNDP 6.3.3 Management support units 6.3.4 Capacity-building measures and exit strategy 6.3.5 Management under direct execution 6.4 Management of inputs 6.4.1 Definitions and key principles 6.4.2 Personnel 6.4.3 Contracts 6.4.4 Training 6.4.5 Equipment 6.4.6 Micro-capital grants 6.4.7 Procurement in countries in special development situations 6.5 Financial management and reporting 6.5.1 Financial accountability 6.5.2 Management of funds 6.5.3 Advances of funds 6.5.4 Direct payments 6.5.5 Recording and authorising direct payments through FIM 6.5.6 Financial reporting 6.5.7 Recording transactions at UNDP headquarters 6.5.8 Financial management under direct execution 6.6 Revisions to programme support documents and project

documents

6.6.1 Policies 6.6.2 Substantive revisions 6.6.3 Budget revisions 6.6.4 Procedures 6.6.5 Revisions in special development situations



6.7 Programme and project completion 6.7.1 Operational completion 6.7.2 Financial completion 6.7.3 Suspension and cancellation 6.8 Audit 6.8.1 Objective and scope 6.8.2 Audit and management arrangements 6.8.3 The audit process Annexes 6A Capacity for programme and project management: key

considerations

6B Standard letter of agreement between the Government and a United Nations agency under national execution

6C Standard letter of agreement between UNDP and the Government for the provision of support services

6D Instructions for the financial report 6E Standard project cooperation agreement between UNDP

and the NGO

6F Standard revision cover page 6G Guide to processing WINFOAS and FIM transactions 6H Direct Execution – Roles and Responsibilities



6.0 OPERATIONS OF PROGRAMMES AND PROJECTS 1. The present chapter sets out the policies and procedures to be

followed in carrying out UNDP-supported programmes and projects. The way a programme or project is carried out is referred to as the management arrangements. The arrangements are worked out during the formulation stage. The approved PSD or project document must include details of these arrangements.

See 4.2 for the steps to follow in formulating programmes and projects. 4.2.11 deals specifically with management arrangements.

6.1 Key policies 1. The following policies on management derive from the policies that

govern the formulation of programmes and projects, particularly as regards national ownership and sustainability.

See 4.1 for the policy framework on programme formulation.

2. Management for results. The management arrangements must be designed to ensure that the expected results are achieved through the effective and efficient use of UNDP resources. The institution managing the programme or project must set up mechanisms to track progress towards results.

This assumes that the objectives and expected results have been clearly defined during the formulation stage.

3. Partnerships. UNDP support must be coordinated with that of other partners, such as the government, United Nations organizations, multi- and bilateral donors and non-governmental organizations (NGOs), regional development banks and private sector concerns. In order to achieve programme and project results, the UNDP country office and the institution responsible for managing the programme or project must establish key partnerships. This also helps promote national ownership and sustainability of results.

The key partnerships are those that are critical to achieving the expected outcomes of the programme or project.

4. Strengthening national skills and capacities. All programmes and projects must use existing national resources, personnel and capacities to the fullest extent. Where a non-national entity such as a United Nations agency manages all or part of a programme or project, specific goals must be included for building national capacities, allowing the progressive transfer of responsibilities to a national entity.

Use annex 6A to identify capacity gaps, in particular, for national

5. Capacity to manage. UNDP must ensure that the designated institution has the necessary capacities. The key aspects of capacity are enumerated in annex 6A (Capacity for programme and project management: key considerations).

execution and NGO execution. For designated institution, see 6.2.1 para. 5. Where rules are found not to be compatible

6. Applicable rules and procedures. The institution that has been designated to manage a programme or project may apply its own internal rules and procedures when using UNDP resources, provided that these rules and procedures are compatible with UNDP principles.

acceptable procedures should be agreed to. UNDP standards are reflected, for example, in UNDP manuals. See annex 6A.



7. United Nations agency participation. United Nations system organizations play a key role in providing support to programmes and projects. When certain United Nations agencies undertake programme or project activities, they are eligible to receive payment for the administrative and operational services (AOS) under the support costs arrangements. The STS facility is available to finance technical support from United Nations agencies.

See annex 3A for the list of eligible United Nations organizations; and 3.6 and 3.7 on the STS and AOS arrangements respectively.

6.2 Management of programmes and projects 1. In this section, the four types of management arrangements are

explained, to enable users to decide which one is the most suitable for a given programme or project. Procedures on how to apply the management arrangements are given in the subsequent sections.

For management arrangements in the case of global and regional programmes and projects see 8.0

6.2.1 Selection of management arrangements

1. UNDP arranges for its support to programmes and projects to be provided in one of four ways:

(a) National execution (NEX). This refers to management by a governmental entity and is the norm;

(b) Execution by a United Nations agency or multilateral development bank;

See annex 3A for a list of the United Nations and multilateral agencies that may

(c) Execution by an NGO; or

execute.

(d) Direct execution (DEX). This refers to cases where management is by UNDP itself; it is permitted only in exceptional circumstances.

See Executive Board decision 98/2 on DEX.

2. The management arrangements are determined after consultations among the parties during the formulation of the programme or project. The final decision rests with the Administrator in view of his accountability to the Executive Board for the use of UNDP resources. The Administrator has delegated the responsibility for making the decision to the UNDP resident representatives through the Associate Administrator and the regional bureaux directors. The authority to approve UNDP direct execution has been delegated to the Associate Administrator alone.

3. The government, through its coordinating authority, has overall responsibility for all UNDP-supported activities. This authority is responsible for ensuring that all relevant departments are fully involved in these activities. It is also responsible for the overall achievement of results of UNDP support in the country. In particular, the government coordinating authority often works in consultation with the UNDP country office to co-ordinate external assistance, and to determine the appropriate management arrangements.

There is only one coordinating authority for UNDP support in each country.



4. The Standard Basic Assistance Agreement (SBAA) is the legal agreement between the government and UNDP for all UNDP activities in the country. It must be respected for all management arrangements.

For the model SBAA and a list of SBAA signed with governments, see the Programming Manual Reference Centre on the UNDP Intranet.

5. A single institution is designated to manage each UNDP-supported programme or project. Its main responsibility is to achieve the results expected from the programme or project, and in particular to ensure that the outputs are produced through effective process management and use of UNDP funds.

The institution selected is referred to as the “designated institution.”

6.2.2 National execution 1. NEX is considered to be the norm since it is expected to contribute

most effectively to:

(a) Greater national self-reliance by effective use and strengthening of the management capabilities and technical expertise of national institutions and individuals, through learning by doing;

This does not mean that national execution is automatically applied. The three other management arrangements may be equally or more appropriate.

(b) Enhanced sustainability of development programmes and projects by increasing national ownership and commitment to development activities;

(c) Reduced workload and integration with national programmes through greater use of appropriate national systems and procedures.

2. The national institution that manages the UNDP-supported programme or project must be the one most closely concerned with the programme or project activities. The eligible institutions are:

(a) A ministry of the government; (b) A department within a ministry; or (c) A governmental institution of a semi-autonomous nature, such as

the central bank, a university, a regional or local authority or a municipality.

Another government institution may be designated provided it comes under the authority of the coordinating authority or the ministry that signed the SBAA.

3. NEX is used when there is adequate capacity in government to undertake the functions and activities of the programme or project. The UNDP country office ascertains the national capacities during the formulation stage. The country office uses annex 6A: Capacity for programme and project management: key considerations to determine any capacity-building measures needed in order to ensure that the programme or project will be managed effectively.

The LPAC verifies the adequacy of national capacities. See 2.5.2 on LPAC.



4. The arrangements for managing a programme or project must include mechanisms to ensure coordination, such as a steering committee, inter-ministerial agreements, or other consultative mechanisms. All such mechanisms must be described in the PSD or project document.

Steering committees are useful tools for involving partners in monitoring progress towards results.

5. The designated institution may contract other entities to undertake specific tasks through a process of competitive bidding. However, if the other entity is another government institution or a United Nations agency, competitive bidding will generally not be necessary. The Local Programme Advisory Committee (LPAC) analyses and decides on the best arrangements for undertaking the programme or project in such cases.

A standard letter of agreement is given in annex 6B.

6. When a United Nations agency acts as a contractor under national execution, this agency and the designated institution sign a letter of agreement (LOA). In such cases, the United Nations agency is referred to as an implementing agency.

For standardisation, the term “co-operating agency” has been replaced with “implementing agency”.

7. The designated institution may also contract an NGO to undertake specific tasks in which case the contribution of an NGO is treated as a subcontract and the standard provisions for contracting applies.

The NGO project cooperation agreement is only required in the case of NGO execution. See 6.2.4 below.

6.2.3 Agency execution 1. United Nations agencies may manage programmes or projects where:

(a) The activities require unique technical sector expertise or specific management capacity and access to international networks;

(b) The government lacks the required management or substantive capacity; or

(c) The parties prefer agency execution for other reasons.

This used to be the most common way to carry out projects. Each United Nations agency has a mandate in its specialised area, which is considered its comparative advantage.

2. In selecting an agency, the resident representative is guided by the agency’s mandate in the subject matter of the programme or project, or by its management expertise, as in the case of the United Nations Office for Project Services (UNOPS).

3. The agencies eligible to manage UNDP-supported programmes and projects under this management arrangement are listed in annex 3A. Most of these are United Nations agencies that have signed a Standard Basic Executing Agency Agreement (SBEAA) with UNDP.

For the SBEAA, see the Programming Manual Reference Centre on the UNDP Intranet.

4. The United Nations agency plans and carries out the programme or project activities in close collaboration with the government institution directly responsible for the programme or project as well as with other national institutions. All programmes and projects managed by United Nations agencies must include, wherever possible, specific goals for the progressive transfer of management responsibilities to the national institutions.

It is expected that this will lead to the application of national execution with time.



4. The government institution participates as a partner, by providing inputs in kind and by carrying out activities as specified in the PSD or project document and work plan. The government institution also takes part in monitoring the progress towards achieving results.

5. The United Nations agency may contract other entities to undertake specific activities through competitive bidding. Sometimes the agency may call upon another United Nations agency to undertake some activities. In this case, competitive bidding is not needed. The designated United Nations agency issues an inter-agency letter of agreement (IALA) to the other United Nations agency.

The format of an IALA is available with each agency. The UNDP country office should receive a copy of the signed IALA.

6.2.4 NGO execution 1. UNDP seeks to collaborate with national as well as international NGOs

that have adequate staff and reasonably sound financial status; have experience in working with external organizations or donors; and, importantly, have the necessary capacities within their fields of expertise to carry out activities and achieve results on behalf of UNDP.

See 6.4.3.5 for the procedures to follow when an NGO carries out part of a PSD or project on behalf of UNDP.

2. Management by a NGO is appropriate in the case of a project that:

(a) Involves close interaction with target groups such as the poor and vulnerable;

(b) Would benefit from established contacts with grass-roots associations; or

(c) Calls for expertise in the use of participatory methods.

NGOs are partners in many UNDP-supported activities besides managing projects. For example, NGOs may play an active role in policy dialogue.

3. Some benefits of NGO execution are that it provides expertise in areas where NGOs have a comparative advantage. It offers an opportunity to enhance the dialogue between the government and the civil society organization (CSO) community in the programme country; it also enlarges the range of UNDP partners.

4. An NGO is defined as a non-profit organization, group or institution that operates independently from a Government and has humanitarian or development objectives. The designated NGO may be a national or an international NGO. In either case, the NGO must have the legal status to operate in accordance with the laws governing NGOs in the programme country. For each project, UNDP signs a standard Project Cooperation Agreement with the designated NGO, and this serves as the basic legal agreement between UNDP and the NGO.

An international NGO is an NGO operating in a programme country but legally registered in another country. The text of the Project Cooperation Agreement is given in annex 6E. The Project Cooperation Agreement does not replace the project document.

5. The UNDP country office must assess the capacity of the NGO to carry out the project. The project document must specify any exceptional support measures required to ensure that the NGO can meet UNDP requirements for managing projects.

Annex 6A (last part) provides guidance on carrying out this exercise.



6. Normally, the parties use a competitive process to select an NGO to manage a project. Since such designation of an NGO is not a procurement action, the LPAC reviews the proposal to designate the NGO and verifies its competitiveness. The NGO is designated where one specific NGO is clearly the most suitable to manage the project or when no other NGOs are available or interested. The LPAC minutes must describe the outcome of the review, the alternatives considered and the reasons why the proposed NGO was selected.

When designating the NGO, the LPAC uses annex 6A to analise the relevant capacities of the NGO. For the LPAC, see 2.5.2.

7. The designated NGO generally carries out the project activities directly but, if necessary, it may also contract other entities, including other NGOs, to undertake specific activities. This is done through a competitive process in accordance with the description of management arrangements in the project document as reviewed by the LPAC. An NGO is defined as a non-profit organization, group or institution that operates independently from a Government and has humanitarian or development objectives. The designated NGO may be a national or an international NGO. In either case, the NGO must have the legal status to operate in accordance with the laws governing NGOs in the programme country. For each project, UNDP signs a standard Project Cooperation Agreement with the designated NGO, and this serves as the basic legal agreement between UNDP and the NGO.

An international NGO is an NGO operating in a programme country but legally registered in another country. The text of the Project Cooperation Agreement is given in Annex 6E. The Project Cooperation Agreement does not replace the project document.

6.2.5 UNDP direct execution 1. Financial Regulation 17.05 : The Administrator may select UNDP as

executing entity only when it can be demonstrated that such a step is essential to safeguard the full responsibility and accountability of the Administrator for the effective delivery of UNDP programme activities.

2. Financial Rule 117.03: (a) UNDP shall limit its role as executing entity to countries in special

development situations; (b) The Associate Administrator is authorized to approve the selection

of UNDP as executing entity for specific UNDP programme activities and shall establish criteria according to which such designation may take place.

See the Financial Regulations and Rules http://intra.undp.org/bom/maintopics/services/rules/rulesmain.html

3. Direct execution may be considered where:

(a) There is a situation which calls for speed of delivery and decision-making where UNDP management is necessary for mobilising resources;

(b) National authorities lack the capacity to carry out the project; (c) The project could not be carried out by another United Nations

agency;

UNDP continues to pursue national capacity building under direct execution. As a check for capacities, the LPAC may use annex 6A.



(d) The UNDP country office has adequate capacity to manage, report and achieve the expected results of the project.

4. UNDP country offices or units wishing to undertake direct execution must submit a request to their respective bureau, with a copy to BOM (OLPS). They may seek authorization either (i) to approve UNDP as the executing entity for a specific project (a single decision), or (ii) to exercise DEX approval authority for a specified period of time, not to exceed one year (an unspecified number of DEX approvals may be made within the given period). In either case, the delegated authority may be exercised only in countries in special development situations, as designated by the Crisis Committee.

See the Administrator’s email message dated 16 October 2000 for further information on the Crisis Committee in the Programming Manual Reference Centre.

5. In requesting direct execution, the resident representative provides the minutes of the local PAC meeting indicating that the following points have been carefully assessed:

(a) The nature of the special development situation (SDS);

See 1.4.9 para. 4 for the definition of special development situations.

(b) The comparative advantage of the country office in managing the project or projects directly. The PAC determines whether execution by UNDP is clearly preferable to the other management arrangements; and verifies that the involvement of the country office with direct execution will not detract from the efforts of the office to shift the focus of UNDP’s activities upstream.

The LPAC should review the expected results and how these will be achieved.

(c) The capacity of the country office and the recovery of costs incurred in managing it.

6. Following his/her review of the request, the head of the regional bureau delegates authority to the resident representative through a formal memorandum which specifies the scope of the authority, the period of which it is valid (not to exceed 12 months) and the financial ceiling. The memorandum may also state other conditions, such as a limitation to certain types of activity or certain geographical areas within a country. The bureau also specifies: any steps that the country office must take in order to ensure it can effectively manage the project or projects, and exercise full accountability for them on behalf of the Administrator; any support to be provided by central units, including ERD; any requirement for referral back to the bureau in case of substantive revisions; and any information that it needs in order to adequately monitor the use of direct execution, and to learn from the experience. The bureau must inform the resident representative of headquarters’ decision within five (5) business days of receiving the request. In cases where time is of the essence, the decision should be made within two (2) business days.

7. Sudden crisis and immediate response. The resources of TRAC-3 Category II are available to enable resident representatives to respond without delay to the outbreak of an emergency (natural or man-made).



Up to $100,000 may be committed in respect of a given emergency. In view of the particular need for quick action, resident representatives are authorized to use direct execution on TRAC-3 Category II projects, in addition to using the other execution modalities.

8. Regional and global projects. This delegation of authority covers country programmes and projects. Proposals for direct execution of regional or global projects, if any, must be referred to the Associate Administrator.

9. Reporting. Since the Executive Board expects that direct execution will be used on a limited scale, the Associate Administrator closely monitors its use. To assist the Associate Administrator in doing so, the regional bureau provides the Associate Administrator with a monthly report on the direct execution projects approved in their region (the report indicates, as a minimum, the number and title of the project, the total budget, the source of funds and an updated list of time-bound delegations of authority to resident representatives).

UNDP reports annually to the Executive Board on the funds provided to programmes and projects through UNDP direct execution.

10. Roles and Responsibilities. To assist the concerned offices in implementing the above provisions, please see annex 6H entitled Direct Execution – Roles and Responsibilities.

6.3 Management support 1. The present section deals with UNDP country office support services

to programmes and projects under national execution, NGO execution and direct execution.

Support to United nations agency execution is governed by the SBEAA and the relevant financial rules and regulations.

6.3.1 UNDP country office support services 1. In its role as a development partner, UNDP participates in

formulating, monitoring and evaluating programmes and projects in order to achieve results. UNDP also assists with financial reporting and sometimes makes direct payments to contractors and suppliers with the agreement of the designated institution.

The need for such support services must be identified at the formulation stage and described in the PSD or

2. In addition, the UNDP country office may provide the following services that would normally be undertaken by the designated institution:

(a) Identification and recruitment of programme or project personnel;

(b) Identification of training activities and assistance in carrying

them out; and (c) Procurement of goods and services.

project document. See 5.1 for the PSD and the project document. There should be clear expected results of such support. Input mobilization by UNDP should support and not detract from focus on making progress towards achieving results.



3. UNDP provides support services upon request from the designated institution, for activities within the country cooperation framework, and in accordance with the regulations, rules and procedures of UNDP. The nature and scope of the services must be described in annexes to the PSD or project document.

The full range of services may not be clear at the formulation stage. If so, the annex to the project document or PSD is updated when the nature of the services becomes clear.

4. The UNDP resident representative is accountable for the provision of the services and their quality and timeliness, and for this purpose draws as far as possible on the experience and expertise of other United Nations organizations. The services are subject to the same monitoring and evaluation as other UNDP-supported activities.

5. The UNDP resident representative must obtain legal protection for country office support services to national execution through an agreement with the national government, signed by an official authorised to confer such legal protection, privileges and immunities.

Annex 6C gives the text of the standard letter of agreement between UNDP and the Government for the provision of support services with

6.3.2 Cost-recovery by UNDP

instructions for its preparation and use.

1. UNDP meets the costs of normal administrative support to programmes and projects from the budget of the UNDP country office.

The corporate policy on cost-recovery is currently under review (1999).

2. The UNDP resident representative may decide to recover the cost of providing support services, where the support involves clearly identifiable and additional costs to the office. These costs are debited to the programme or project provided that the Government agrees. The costs and related payment schedules must be described in the annex to the PSD or project document, which deals with the provision of UNDP support services.

This section applies to costs for support services described in 6.3.1 only. Fees for handling other resources are described in 3.10 to 3.13

3. When a United Nations agency undertakes activities of a UNDP-funded programme or project, it receives partial reimbursement from UNDP for the cost of providing AOS. The cost of any support services that the country office provides to the United Nations agency may be recovered from the AOS entitlement of the agency for the programme or project in question. The United Nations agency and the UNDP country office jointly agree on an appropriate sum.

See 3.7 for information on AOS. The amount of such reimbursement depends on the volume and complexity of the services provided.

4. Under direct execution, the cost to the country office of taking on additional tasks must be calculated during project formulation and included in the project budget. This is done by adding the costs to the appropriate budget line (for example line 13 for the recruitment of additional administrative staff to work in the country office or line 21 for the costs of a subcontracted audit). In the case of cost-sharing or trust fund projects, the additional costs may be met partly or wholly from the country office administration line (formerly line 158).

See 3.10.6 paragraph 4.



6.3.3 Management support units

1. The administrative, financial and technical tasks involved in managing programmes and projects are normally integrated into the work of the government. Where the government lacks the capacity to undertake these tasks, the parties should work out measures to build up that capacity as part of the design of the programme or project.

2. A management support unit (MSU) may be established to carry out the tasks that cannot be handled by the existing government mechanisms. The MSU, as a parallel structure to that of the government, can create problems: it may impede the development of the government’s own capacities; and it may provide services at a cost that the government could neither afford nor sustain.

MSUs are most common in cases of national execution. They may be called differently, and may also be established within projects. See 6.3.4 on exit strategies.

3. For these reasons, UNDP may support the establishment of an MSU only where:

The LPAC must address the cost-effectiveness, impact on sustainability and need for capacity- building, and clarify the

(a) The support is limited in time and is accompanied by capacity-building measures in the government;

expected results in terms of increased accountability, capacity, quality programming,

(b) The MSU functions within a government structure and under government supervision, rather than under the supervision of the UNDP country office;

delivery etc.

(c) The PSD or project document contains a description of the tasks of the MSU and the expected results that the MSU is expected to achieve.

6.3.4 Capacity-building measures and exit strategy 1. Support from UNDP must be temporary in nature, needed initially but

decreasing as the capacity of the designated institution is built up. The phased withdrawal of such support through capacity-building measures is an integral part of UNDP policy.

See Executive Board decision 98/2. Such strategies are required wherever UNDP provides support services.

2. The PSD or project document must specify the capacity-building measures and exit strategy. The exit strategy is established for each programme or project receiving services. Much of the exit strategy will consist of capacity-building measures, relating to systems, procedures, institutions and individuals. The strategy includes the process, the responsibilities and a time frame for the transfer of responsibility for providing the services.

Alternatively, the strategy may be prepared at the CCF level, and attached to the PSDs and project documents.

3. The country office must record actions taken to monitor the implementation of the strategy. A review of the strategy will be part of the annual programme and project reviews, the country reviews and evaluations.



6.3.5 Management under direct execution 1. Under direct execution, the UNDP country office takes on additional

roles and responsibilities. The country office has to establish structures and systems to handle these responsibilities efficiently, effectively and transparently.

2. Division of responsibilities: The resident representative must ensure that responsibilities under DEX are allocated in such a way as to ensure transparency in project management. This means dividing responsibilities among several staff members. The principal responsibilities are:

(a) supervisory: normally the resident representative or deputy resident representative. This person has overall responsibility for the achievement of results, approves budget revisions, signs contracts, and supervises the project manager (see below).

(b) day-to-day operations: a project manager, recruited externally for a large complex project, but can be a programme officer for a small project. This person ensures that project activities are carried out, supervises technical and administrative project personnel, prepares reports, etc.

(c) monitoring: if there is a full-time project manager, a programme officer performs the monitoring function. If a programme officer manages day-to-day operations, then another staff member performs the monitoring function.

(d) administrative support services: several administrative staff need to have defined responsibilities under DEX. This relates especially to recruitment, procurement and financial management.

See chapter 5 of the DEX guidelines.

3. Partnership under direct execution. A key feature of DEX is a change in the relationships among the parties. The UNDP country office has additional responsibilities, while the government may be unable to play its normal role in execution or oversight. When this occurs, the country office must find alternative ways of ensuring the needed transparency and accountability. This may be achieved with a steering committee that includes stakeholders chosen from groups of beneficiaries, from other United Nations agencies, civil society organisations and other donors.

For an indication of steering committee responsibilities, see DEX guidelines chapter 5. The steering committee may meet once in three months or even more often. It may be necessary for stakeholders to participate in the local contracts committee too.

4. Role of the regional bureau. Since DEX is used in countries in special development situations, the regional bureau has an added responsibility for overseeing DEX projects at the country level and ensuring the proper use of UNDP funds. Among other tasks, the regional bureau must ensure that the country office has effective systems for implementing, monitoring and evaluating its DEX



projects. The regional bureau also reviews the annual progress report (APR) and tripartite review reports, and reviews the terms of reference for any project evaluation and participates in the selection of the evaluation team leader.

6.4 Management of inputs

1. When the management arrangements have been determined, the institution undertaking the programme or project arranges for the procurement of the inputs and puts them to use. This section explains the policies and principles to be observed in procuring and using inputs, with a view to producing the expected results.

See 4.2.10 on how to select inputs and 4.3 on policies regarding inputs. Also see 5.2 on preparing budgets.

6.4.1 Definitions and key principles 1. Inputs are the personnel, goods and services defined according to

the following budget categories:

(a) Personnel; (b) Contracts; (c) Training; (d) Equipment; (e) Micro-capital grants; (f) Miscellaneous.

2. Inputs are obtained on the basis of the programme or project work plan and the corresponding budget. UNDP provides inputs that are both necessary and sufficient to produce the planned outputs. Where the progress towards results is not advancing as expected, the designated institution and the UNDP country office must review the strategy of the programme or project, including the work plan, budget and inputs to provide.

UNDP is committed to ensuring a focus on results, rather than focus mainly on inputs and activities.

3. In providing inputs, the following key principles must be observed:

(a) Competitiveness. The designated institution uses internationally recognised competitive-bidding practices in procuring inputs whenever UNDP would have followed these practices for procurement on its own account. This means that the designated institution makes a wide search for the most qualified candidates or suppliers. It recruits the best-suited individual or accepts the best offer for the task identified in a job description. A key consideration in all cases is cost-effectiveness. The procurement and acquisition of services and goods must be done according to set principles. These principles are described in the document entitled “Common guidelines for procurement by organizations of the United Nations system”;

This principle aims to achieve the best value for money. For procurement principles, see the General Business Guide for potential suppliers of goods and services, issued by IAPSO. See the Programming Manual Reference Centre on the UNDP Intranet. When UNDP procures inputs, the LCC and ACP are used. See



(b) Transparency. The selection process must be transparent and open, giving full and equal information to all candidates or suppliers, with clear selection criteria and with several persons participating in the decision-making process. For example, a committee may be set up for the purpose. Proper records must be kept;

http://intra.undp.org/bom/maintopics/divisions/olpsmain.html

(c) Multilateralism. The selection of inputs is made without regard to country of origin. Procurement and recruitment must be undertaken on a wide geographical basis whenever UNDP would have done this for its own procurement and recruitment. However, procurement within the country (local procurement) is also encouraged, because of its benefits to the national economy. Decisions on procurement must also take into account the speed of delivery and the availability of after-sales service, training, maintenance, repairs and spare parts.

The country office is kept informed through copies of invoices and records, in accordance with the PSD or project document.

4. The entity responsible for obtaining UNDP-funded inputs is accountable for their quality, timeliness and effectiveness. The designated institution is responsible for ensuring that the inputs are put to good use in order to produce the planned outputs. It must also keep the UNDP country office informed of the systems and processes used for securing the inputs.

5. The designated institution may follow its own procurement procedures provided they conform to international competitive bidding practices. The institution may alternatively apply UNDP practices.

6. The UNDP country office may obtain certain inputs on behalf of the institution managing the programme or project. In this case, UNDP establishes the contracts following UNDP rules and procedures, as well as the policies for country office support services in 6.3.

6.4.2 Personnel 1. Government staff. Since UNDP-supported programmes and

projects form part of the development activities of the programme country, the Government assigns its own personnel to participate in programme or project activities as part of their work responsibilities. Such personnel are referred to as “government staff”.

This category of staff is reflected in the government budget, not in the programme or project budget.

2. National director. For each UNDP-supported programme or project the government must appoint a national director. The national director supports the programme or project and serves as a focal point on the part of government. This responsibility normally entails ensuring effective communications between the partners and monitoring of progress towards expected results.

The title and exact responsibilities of this person vary from country to country.



3. Job description. The designated institution is responsible for ensuring that job descriptions are prepared for all UNDP-supported personnel. Job descriptions are an essential part of the recruitment process. The partners concerned must agree on their content. Job descriptions must be updated regularly and must clearly identify the outputs the person is expected to produce. This also serves as a basis for measuring performance.

Job descriptions for government staff are also desirable because this helps the effective functioning of the programme or project. Job descriptions are also called “terms of reference”. Individual work plans are also recommended for all

4. Remuneration and entitlements. The following are key policies on remuneration and entitlements:

(a) UNDP finances programme and project personnel who have

skills that are needed to attain the programme or project objectives but that are not available within or to the government;

staff.

Irrespective of who recruits them, staff in similar jobs paid from UNDP funds should enjoy similar conditions of service.

(b) The salaries and other entitlements of locally recruited personnel must not exceed those within the United Nations system for comparable functions and types of contracts in the country concerned. The designated institution and the UNDP resident representative determine the salaries and other entitlements of UNDP-supported programme or project personnel;

Under national execution, government salaries are normally applied. It may be useful to jointly establish a salary scale for this.

(c) In principle, government officials cannot be funded under the UNDP contribution to a programme or project since this would undermine national ownership and sustainability: There is a United Nations policy statement on payments to government staff. This statement explains the policy and the circumstances in which exceptions may be made, namely that the country must be facing serious economic difficulties which have drastically reduced the purchasing power of civil service salaries. The policy provides also that such payments be coordinated among donors and an exit strategy be developed with the government and the other donors whereby such payments are gradually phased out;

See the Programming Manual Reference Centre on the UNDP Intranet for the United Nations policy on payments to government staff. Contact BDP (OPARG) for clarifications.

(d) The entitlements for travel of personnel funded by the programme or project must not exceed those for UNDP staff.

For more on policies for travel, see the Manual on Operations Management (MOM),

5. Recruitment by UNDP. The UNDP country office may recruit personnel for programmes and projects according to UNDP rules, either as part of UNDP country office support services to national execution or under direct execution. UNDP issues the following types of personnel contracts:

(a) Service contract, as described in the Service Contract User’s

Handbook;

chapter I. For country office support to national execution, see 6.3.1.

(b) Special Services Agreement (SSA), as described in the Guidelines for the Use of SSA;

These handbooks are available from BOM/ OHR.



(c) Appointment for Activities of Limited Duration (ALD), as described in the ALD Handbook;

(d) Fixed-term contracts, 100, 200 series, as described in the Personnel Manual.

6. Labour laws. The UNDP country office must take all reasonable steps to ensure that the labour laws and regulations of the programme country are respected. This applies irrespective of the management arrangements.

It may be useful to obtain local counsel on legal matters.

7. Categories of personnel and their recruitment. In addition to government staff, the following categories of personnel are involved in UNDP-supported programmes and projects:

(a) Consultants;

All personnel is recruited by the designated institution (or its contractors) unless otherwise specified.

(b) United Nations Volunteers;

(c) Administrative support staff;

(d) Interns.

8. A description of each of these categories is given below:

(a) Consultants are persons on assignment to the programme or project. The duration of the assignment may be short term or long term. The primary function of a consultant is to provide advisory and training services to strengthen national skills, in line with the objectives and activities of the PSD or project document. The expected outputs of capacity-building activities should be detailed in the job description. Note also:

i. International consultants are persons who are not citizens of

the programme country and who are normally recruited from abroad. An institution that recruits consultants must have access to international rosters of consultants or advertise in global publications. The institution also needs the capacity to make payments in foreign currency and to arrange air tickets and travel insurance. The institution may also need to offer such benefits as lodging, health and life insurance, a pension scheme, shipping of personal effects, periodic home leave travel, and family and education benefits;

There is no longer an official distinction between “experts” and “consultants”. The entitlements depend on the contract negotiated with the person. Under United Nations agency execution, international personnel include the Chief Technical Advisor (CTA) and technical specialists. Such benefits are normally required for longer-term contracts.

ii. National consultants are citizens of the programme country who are recruited to provide professional services. An institution that recruits national consultants must have access to locally established salary scales, national rosters or lists of consultants, and must advertise in the local press. The institution may also need to offer such benefits as a pension scheme, and family and education benefits;

Under national execution, government entitlements would normally be applied. In any case, they should not exceed those of UNDP for similar services.



iii. Non-resident national consultants are citizens of the programme country who have established permanent residence in another country. Non-resident nationals may be recruited to serve in a UNDP-supported programme or project in their home country, subject to the agreement of the government. Non-resident nationals are recruited as national consultants, and are paid as such, but they receive additional benefits, which are negotiated on the basis of continuing financial commitments in their country of residence, provided that such payments do not exceed the corresponding

Examples of such

payments that the United Nations would make. However, UNDP will not finance continuing commitments for more than two years. Cases in excess of two years are to be reported to the regional bureaux as part of their oversight responsibility and are subject to audit;

additional benefits are payment in foreign currency in the country of residence, pension contributions, education expenses and insurance.

iv. Associate experts are junior consultants, normally nationals of a developed country who are provided by that country at no cost to the programme or project. They provide advisory and support services to programmes and projects, while acquiring development experience themselves. The UNDP Office of Human Resources (OHR) or a United Nations agency recruits associate experts, in cooperation with the donor government, and administers their contracts.

For information on recruiting international UNVs, see the Conditions of Service booklet, issued by UNV headquarters. Recruitment of national

(b) United Nations Volunteers. United Nations Volunteers (UNVs) serve the entire United Nations system. The UNDP country office assists the UNV programme to promote and manage the use of UNVs working with donor-supported programmes and projects. Several types of UNVs participate in the activities of UNDP-supported programmes or projects, as described below:

i. International and national UNV specialists are development

workers serving technical cooperation and humanitarian programmes and projects, or based in country offices of the United Nations. They work to support community-based initiatives, rehabilitation, peace-building, and the conduct of elections;

UNV specialists and field workers is decentralised to the country level in accordance with the UNV guidance note on the use of UNVs, issued by UNV headquarters in March 1998. See the Programming Manual Reference Centre on the UNDP Intranet. For recruitment of UNVs, contact the headquarters of the UNV Programme in Bonn, Germany.

ii. International and national UNV field workers are development workers at the community or grass-roots level who specialise in community and participatory development;

iii. UNISTAR consultants. The United Nations International Short-Term Advisory Resources (UNISTAR) consultants are experienced professionals who volunteer their services to private companies, state-owned enterprises, government institutions and CSOs. They promote business and technical skills in management, marketing, planning, production, design and finance;



iv. TOKTEN consultants. Consultants fielded through the Transfer of Knowledge Through Expatriate Nationals (TOKTEN) modality are experienced professionals living outside their country of origin but who return there for short periods to assist academic and research institutions, public or industrial bodies, as well as CSOs.

(c) Administrative support staff are persons recruited for administrative work. They include accountants, secretaries and drivers. They provide administrative and logistical support that cannot be provided by the government. The institution that recruits them should normally have a locally established salary scale, access to rosters, and should advertise in the local media. Also, the institution needs to consider entitlements such as a pension scheme and family and education benefits.

This category of staff is also expected to relieve national staff from administrative tasks. Their job descriptions should include expected outputs and performance standards.

(d) Interns are independent volunteers who offer their unpaid services to support development activities while acquiring work experience. The national director of the programme or project ensures that interns are qualified and that they are assigned to appropriate tasks and have a job description. While interns do not receive salaries or allowances, the national director should make a written agreement with interns on their responsibilities and the duration and conditions of appointment.

For more information on interns, you may read the brochure “Internship Programme” of the Office of Human Resources (OHR). The UNDP country office should be consulted.

6.4.3 Contracts

1. A contract is an agreement between two entities to carry out specific activities, or to provide specific goods or services. Contracting is used where the parties agree that it would be the most cost-effective way of achieving the desired results. This may, for example, occur when a coherent approach is needed to carry out a specific set of activities, or when a component or large part of a programme or project needs to be undertaken by a single entity.

In the case of programme or project management, contracts are normally between the designated institution and another institution, private firm or NGO. The contract is included under component 20 of the PSD or project budget.

2. Designated institutions may contract the services of private sector companies, NGOs, or any other institution. In doing so, they must respect the principles for obtaining inputs in 6.4.1.

3. When UNDP contracts services in the context of country office support to national execution, or in the context of direct execution, UNDP contracting procedures must be used.

See BOM/OLPS website for more information on procurement. http://intra.undp.org/bom/maintopics/divisions/olpsmain.html

4. Contracts often involve a large number of activities and items to be obtained requiring effective process management. The designated institution is responsible for the oversight and monitoring of contractors’ work. For this, the contract should describe progress benchmarks and indicators for measuring the outputs of the contract.

An NGO that is asked to implement activities funded by UNDP may be named in a PSD or



5. Implementation of activities by non-governmental organisations. Where it is decided that part of a project will be carried out by one or more non-governmental organisations (NGO), the NGO activities are treated as a subcontract. The NGOs are chosen according to the same transparent, competitive process that would apply to a private company. Thus, it is not appropriate to name the NGO in the project document or PSD. Naming the NGO in the document amounts to waiving competitive bidding.

project document if a waiver of competitive bidding is obtained before the PSD or project document is signed. If an NGO is itself to be the designated institution, the proposal to waive competitive bidding is examined by the LPAC. See 6.2.4.

6.4.4 Training 1. Policies. UNDP finances training designed to further the objectives

and expected results of a programme or project and to strengthen national capacities. The key policies on organising training, namely fellowships and other training, are:

Training should aim at changing behaviour or attitudes that, for example, help to improve the functioning of an institution or a programme.

(a) Participants in training are programme and project beneficiaries and government staff. Consultants are not eligible for training within a programme or project since they are recruited to perform specific tasks for which they must already be qualified. However, all personnel may participate in local group training activities; UNDP programme resources may not be used for the training of UNDP country office (or headquarters) staff alone;

See also 4.3 for policies regarding the selection of inputs at the formulation stage.

(b) UNDP may finance travel by government staff to conferences, meetings and other events that were not foreseen at the formulation stage, provided that their participation in such an event is necessary in order to produce the results of the programme or project;

The revision of inputs is determined by the need to produce the exact outputs of the programme or project, as demonstrated by monitoring and reviews. See 6.6.2 on revisions.

(c) UNDP may finance travel and allowances for participants who live somewhere in the country other than where the training event takes place. However, UNDP does not pay sitting fees or otherwise remunerate individuals simply to attend training.

2. Principles. The general principles that apply in organising any type of training are:

(a) Planning. All training must contribute directly to the programme or

project objectives, be necessary to produce the outputs and achieve results, and take place in accordance with the PSD or project document and the work plan;

Ideally, there should be a more detailed training plan that contributes to the capacity-building strategy of the programme or project.

(b) Reporting. Beneficiaries of training must prepare a report not more than one month after their training ends. The report is distributed to all parties concerned. The employer, normally the government, is responsible for ensuring that the participant puts the training to good use to achieve results. UNDP and the Government must regularly assess and evaluate the impact of training;



(c) Selection. The designated institution must establish procedures to ensure that the best-qualified candidates are selected for training. The selection of candidates and of the training venue are based on the job description, actual performance on the job, and the experience, aptitudes and academic background of the candidate.

3. Fellowships. A fellowship is a specific training activity for a qualified individual, referred to as a fellow. The individual is entitled to payment of a stipend. The following procedures must be observed:

(a) Stipends. The United Nations stipend rates, namely an allowance

for room and board, apply to all fellows irrespective of their status. UNDP may also provide other allowances;

For information on the maximum monthly stipend rates applicable to United Nations system fellowships, consult the Department for Economic and Social Affairs (DESA). Such other allowances may be a book allowance.

(b) Return to duty. Fellows must return to the programme country and perform functions comparable to those for which they were

trained. The government may establish, as a precondition, a legal contract binding a fellow to return;

The expected result of

(c) Effective use. The government must take steps to ensure the effective use of the trained fellow;

fellowships is that the capacity of his/her work institution is strengthened. This is not

(d) Reporting. Links between the fellow and the releasing institution must be maintained during the period of training. The fellow must send regular reports on his/her progress;

achieved unless the fellow returns to duty and applies effectively the skills acquired. The arrangements for

(e) Organization of fellowships. Key steps in organising fellowships are:

reporting should be detailed in the letter of award.

i. Nomination of candidates. The candidate submits a

nomination form. The institution that arranges the fellowship obtains confirmation of the language abilities of the candidates;

Health certificate is also requested where appropriate.

ii. Selection of candidates. The nomination forms are reviewed to ensure that the best qualified candidates are selected;

iii. Placement of the fellow. The most appropriate training centre is identified in accordance with the course contents and relevance, location and duration required by the fellow;

iv. Award of fellowship. To avoid misunderstandings, the institution arranging the training sends a letter of award to the fellow, with information on the stipend, travel, reporting requirements, insurance forms, and an acceptance form for the fellow to return;

The travel costs include international travel and sometimes travel within the country of study.



v. Logistics. The institution informs the fellow of the travel and other relevant practical information, and ensures that the fellow has obtained any visa that is needed. The institution arranges for insurance for health, disability, and death;

vi. Financial arrangements. The institution makes the financial arrangements, including paying the cost of travel; a stipend to the fellow; tuition fees to the training centre; a book allowance;

A book allowance is sometimes included in the tuition fees.

vii. Monitoring of performance. The institution organising the training and the fellow’s employer keeps in touch with the fellow and his/her study supervisor on the fellow’s progress. The fellow must inform the institution of changes in study programme, leave of absence, repatriation, requests for extension and any other issue influencing the study.

4. Other types of training. This category of training is normally shorter in duration than fellowships. It includes the following: (a) Group training: participation by several people in short-term

courses or workshops locally or internationally;

If well designed, group training can be an effective capacity- building tool.

(b) Study tour: visits by individuals or groups to counterpart institutions in various locations to observe programmes and projects and learn from exchange of experiences. The purpose is to enable beneficiaries, national managers and technical personnel to broaden their understanding and upgrade their efficiency in performing their tasks, through study, review and comparison of activities which are similar to their own;

It reaches a large number of participants, is easily adaptable to local needs and allows a team to work together in strengthening skills.

(c) Conferences: arrangements for or participation in conferences or meetings of a technical nature. Participation in conferences must contribute directly to the programme or project objectives and be necessary to produce the outputs of the programme or project.

6.4.5 Equipment 1. Policies on managing equipment. The following definitions and policies

apply:

(a) Equipment refers to manufactured and semi-manufactured goods, raw materials and other supplies that are needed in order to produce the outputs of a UNDP-supported programme or project;

(b) Non-expendable equipment refers to all items valued at $1,000 or more. The designated institution must maintain an up-to-date inventory of non-expendable equipment;

This inventory specifies each item, where it is located and its original cost.



(c) Expendable equipment refers to items of equipment valued at less than $1,000. An inventory is not required for this equipment but the designated institution should ensure that a list of the more important or valuable items, such as cameras and calculators, is maintained;

The Common Guidelines can be found in annex I of the General Business

(d) The procurement of goods and services must be in line with the principles described in the document entitled “Common guidelines for procurement by organizations of the United Nations System”;

Guide for Potential Suppliers of Goods and Services, issued by IAPSO.

(e) Equipment purchased with UNDP funds remains UNDP property until formally transferred or otherwise disposed of. The UNDP country office makes sure that the equipment is insured. After transfer, the recipient institution is responsible for insuring the equipment. For inventory purposes, all equipment provided by UNDP must be clearly and visibly marked “UNDP” until disposed of;

It is useful to agree, at the formulation stage, on the time and mechanism of transfer, and record their agreement in the PSD or project document. See the Manual on Operations Management,

(f) The designated institution is responsible for ensuring that the equipment and supplies procured with UNDP funds are used strictly for the purposes of the programme or project, as described in the PSD or project document.

chapter 4, for more information on insurance.

2. Management of equipment. The following principles apply:

(a) The designated institution must ensure that the equipment is kept in good working order;

(b) The designated institution must provide annually to the UNDP country office a certified inventory of all non-expendable equipment financed by UNDP. Under United Nations agency execution, the government, an authorised programme or project official, or the UNDP country office will certify the inventory, which is returned to the United Nations agency;

See memorandum of 15 July 1996 on the management and control of UNDP vehicles (UNDP/ADM/96/53).

(c) In cases of damage, theft or other loss of vehicles or other equipment, the designated institution must provide the UNDP country office with a report, including a police report, giving full details of the events leading to the loss of the equipment. The report will be used for the purposes of insurance and for disciplinary action.

3. Disposal of equipment. The following principles apply:

(a) The UNDP resident representative is responsible for deciding on the transfer or other disposal of equipment financed by UNDP. He/she does so in consultation with the other parties to the programme or project;



(b) Equipment may be transferred to the government for programme or project activities managed by a recipient institution at any time during the life of a programme or project;

(c) Equipment may be temporarily placed in the custody of the UNDP country office, pending transfer or sale. The custody period must not exceed nine months;

The need for custody usually arises once UNDP support for the programme or project has come to an end.

(d) Under NGO execution, the NGO returns all UNDP-financed non-expendable equipment to UNDP upon completion of the project. Such equipment is transferred or sold unless alternative arrangements are agreed on between the parties;

(e) When no longer needed by the programme or project, equipment may be transferred to another programme or project or to the government, or it may be disposed of by sale or donation. In all cases of transfer, a transfer document must be prepared and kept on file. If equipment is sold, the sale is carried out following the procedures in GAM chapter III.

For sample of a transfer document, see the Programming Manual Reference Centre on the UNDP Intranet.

6.4.6 Micro-capital grants 1. Where a micro-capital grant is to be provided, a Memorandum of

Understanding (MOU) must be established between the designated institution of the programme or project and the recipient institution. The MOU sets out:

(a) the responsibilities of each party;

See 4.3.5 for the policies on micro-capital grant inputs. For credit activities the recipient institution is often a credit institution or a bank, which in turn provides loans to beneficiaries.

(b) the activities to be undertaken; For a standard MOU for credit activities, see the

(c) the outputs to be produced; Programming Manual

(d) the performance criteria for the release of future tranches of funding;

Reference Centre on the UNDP Intranet. A similar MOU is also available

(e) duration of activities; for non-credit related activities.

(f) reporting arrangements for credit related purposes.

2. The PSD or project document should provide for an independent mechanism such as a steering committee that will review and endorse the selection of recipient institutions, and assess the performance of these institutions in managing the grants.

Such a steering committee could take the form of a national selection committee comprised of many different actors including civil society,

3. When used for credit-related activities, UNDP funds must be used in line with “Small and Micro enterprise Finance Guiding Principles for Selecting and Support Intermediaries”. The UNDP country office in consultation with the designated institution must ensure that any institution receiving a micro-capital grant is able to demonstrate competency in the following areas:

government, private sector and UNDP. See the micro-finance guidelines in the Programming Manual Reference Centre on the UNDP Intranet.



(a) Institutional strength. Sound institutional culture with a mission and vision that is supportive of the expansion of micro-finance services to low-income clients; management and information systems that provide accurate and transparent financial reports according to internationally recognised standards; and efficient operating systems;

(b) Quality service and outreach. Focus on serving low-income clients and on expanding client reach and market penetration; financial services that meet the needs of their clients;

Examples of needs-oriented services are small, short-term loans with collateral

(c) Sound financial performance. Interest rates on loans sufficient to cover the full costs of efficient lending on a sustainable basis; low portfolio in arrears and low default rates; a diversified funding base for its micro-finance operations to minimise dependency on donor subsidies.

substitutes or alternative forms of collateral, and safe, convenient savings facilities. A reasonable time frame for sustainability is 5 to 7 years.

4. All recipient institutions must have a system for reporting regularly on the quality of its services, outreach and financial performance, as follows:

(a) Reporting on outreach and performance through an initial

baseline report and thereafter each quarter;

The required reporting format for credit activities can be found in the Programming Manual Reference Centre on the UNDP Intranet. Reporting allows the partners to measure

(b) Financial performance including balance sheet, income statement and audited financial statements, annually;

results. There should be clear expected impact on the institutions receiving grants and their clients.

5. The designated institution of the programme or project is responsible for:

(a) Approving, in consultation with a steering committee, requests

for grants;

It is important to work with partners to provide enough financial volume for the credit lines to have effect. Enabling environment and support to the recipient are also crucial for

(b) Establishing the MOU between itself and the recipient institution;

success.

(c) Managing the release of the grant;

(d) Monitoring and reporting to UNDP on the implementation of the activities covered by the grant and the achievement of results from the grant.

6.4.7 Procurement in countries in special development situations 1. In emergency situations with a need for quick action and immediate

results, modifications in the normal procurement rules may be made as described below. The modified rules may be applied once the Crisis Committee has declared a programme country to be in a special development situation.

See the Administrator’s email message dated 16 October 2000 for further information on the Crisis Committee in the Programming Manual Reference Centre.



2. For contracts of up to $30,000, the resident representative is authorised to waive short-listing and competitive bidding in procurement and recruitment. The resident representative must ensure that a record is made of the reasons for waiving competition, and that a copy of the record is sent to the Chief Procurement Officer.

The Chief Procurement Officer is the Director of BOM/OLPS.

3. For contracts of up to $100,000, the resident representative may waive the requirement to call for invitations to bid or request for proposals, provided that competitive quotations that conform to the specification and delivery schedules have been assessed. The resident representative must ensure that a record is made of the reasons for waiving invitations to bid or request for proposals, and that a copy of the record is sent to the Chief Procurement Officer.

All normal procurement policies and procedures apply, except for the modified rules noted in this section.

4. For contracts involving commitments of $100,000 or more, the resident representative may request the Chief Procurement Officer directly to waive the requirement for invitation to bid or request for proposal. The steps are as follows:

(a) The resident representative requests a waiver, explaining why

time does not permit the normal procedures to be followed, and the alternative procurement arrangements that he/she proposes to make;

These provisions apply regardless of whether the proposed contract results from a competitive-bidding process or is based on negotiation.

(b) If the Chief Procurement Officer approves the request, he/she will require that the proposed contract be submitted to the Local Contracts Committee (LCC) if the cost is between $100,000 and $300,000, and to the headquarters’ Advisory Committee on Procurement (ACP) for contracts of $300,000 or more;

(c) The resident representative ensures that the Chief Procurement Officer is informed within one month of the award of all contracts between $100,000 and $300,000 by providing a copy of the signed contract together with the justification for the selection of the contractor. This procedure replaces the normal semi-annual reporting requirement of the LCC to the Chief Procurement Officer.

5. For project procurement by UNDP in countries in special development situations, the resident representative may authorise procurement from a local contractor. This may be done provided that the price difference does not exceed 25 per cent of the cost of the same procurement if made internationally, and that the goods are immediately available either from within the country or from a neighbouring country.

For international standards, IAPSO rates apply.



6.5 Financial management and reporting

1. The present section explains how to manage UNDP resources under national execution, direct execution and NGO execution.

Where relevant, exceptions for agency execution are presented.

6.5.1 Financial accountability 1. Sound financial management is an integral part of the process of

achieving results through UNDP support. This includes adequate reporting to identify problems and adjust activities, budgets and inputs to be provided.

2. The designated institution is accountable for:

(a) Managing the UNDP resources allocated to the programme or project to achieve the expected results and planning financial disbursements, in accordance with the work plan, PSD and project document;

(b) Maintaining an up-to-date accounting system that contains records and controls to ensure the accuracy and reliability of financial information and reporting;

See the Finance Manual.

(c) Recording the receipt and disbursement of UNDP funds and verifying that disbursements do not exceed the available funds or the amount allocated to each approved budgetary category;

(d) Maintaining an inventory that records the acquisition and disposal of equipment.

3. The UNDP resident representative ensures that the UNDP country office has an internal control system that allows it to monitor effectively the financial activity of the programme or project and to support and monitor the progress towards achieving results.

4. There must always be an appropriate separation of committing and verifying functions.

6.5.2 Management of funds 1. The management of programme and project funds must be based on

an updated work plan with a corresponding budget. It requires planning and close consultation between the partners involved. UNDP provides funds in accordance with progress towards achieving results.

Rather than making direct payments, UNDP prefers to provide advances of funds, because this

2. The UNDP country office provides funds to the designated institution through advances of funds. The institution is then responsible for spending the funds as agreed in order to achieve the results.

strengthens the full assumption of responsibility by the designated institution.



3. The designated institution may request UNDP to pay such advances directly to contractors or other government entities undertaking programme or project activities in line with the work plan and budget. UNDP may also reimburse expenditures already incurred by the designated institution, provided that they are in accordance with the work plan and budget.

This is done through the financial report. See 6.5.4. on financial reporting. The financial report replaces the request for advances.

4. Advances and direct payments are made when there is continued progress towards the achievement of the expected results. The UNDP country office sets up a system enabling it to verify such progress in conjunction with releasing advances of funds.

This means linking monitoring to financial management.

5. When a United Nations agency undertakes programme or project activities on behalf of a designated institution, UNDP headquarters provide funds directly to the agency, in accordance with the schedule of advances in the letter of agreement between the designated institution and the United Nations agency.

For the model letter of agreement, see annex 6B.

6. Direct execution. When a UNDP country office itself takes on the role of designated institution, the Resident Representative ensures that within the country office there is a separation of responsibilities among the functions of a) planning and supervising project activities and taking decisions; and b) technical and operational implementation of activities.

See 6.5.5. For more details, see the DEX guidelines.

7. The designated institution, the government coordinating authority and UNDP each monitor continuously the progress made and the disbursement of funds and take steps to prevent any problems. However, if progress is not made despite such monitoring, if mismanagement of funds is suspected or if reporting is inadequate, UNDP may withhold advances of funds while seeking a solution.

If there are difficulties in producing the outputs as planned, the designated institution should inform UNDP.

6.5.3 Advances of funds 1. The UNDP country office makes advances of funds to the designated

institution only on receipt of a completed and signed financial report. The financial report contains both an explanation of previous expenditures and a request for a new advance.

See 6.5.4 on financial reporting and annex 6D for instructions for the financial report.

2. The designated institution requests an advance of funds on the basis of the work plan and its corresponding budget. The request is documented in the financial report and specifies the cash required under two headings, as follows:

(a) Outstanding obligations: the costs of inputs that have been

contracted for but for which payment has not yet been made. Only obligations that will be paid in the next period are included;

The inputs may have been received already or may still be awaited.

(b) Planned expenditures: the costs of new inputs that will be procured and paid for during the next period.



3. Advances of funds are normally made in the local currency. Any request for advances in currencies not available to the UNDP country office must be forwarded to the Treasury Section at UNDP headquarters.

4. Advances are made for a three-month period or less, depending on the needs of the programme or project. The frequency is agreed on between the designated institution and the UNDP country office at the outset of the programme or project.

The minimum period for an advance is normally one month; the maximum and recommended period is three months.

5. The key steps in requesting and making an advance of funds are:

(a) The designated institution sends the request for the advance to the UNDP country office in the standard financial report format. To ensure efficient use of UNDP resources, the request must reflect a realistic forecast of expenditures for the next period, in line with the programme or project work plan;

See 6.5.4 and Annex 6D on preparing the financial report.

(b) The UNDP country office verifies that resources are available and uses the work plan to verify that the amount requested does not exceed the expenditures that may reasonably be expected during the next period. It also verifies the use of funds for the previous period and whether progress is being made towards the achievement of the expected results;

(c) The UNDP country office pays the advance of funds into the programme or project bank account of the designated institution, and records the advance using the government interoffice voucher through the Financial Management Information System (FIM).

IOVs for GEF projects must be used only under direct execution arrangements.

(d) The designated institution disburses funds against the advance and records the transactions in its accounting system;

(e) The designated institution prepares the financial report, showing the actual expenditures in each month of the period covered by the report. The designated institution makes the request for advance for the next period, repeating step (a).

6. Bank account. The designated institution operates a separate bank account in order to receive and disburse UNDP funds. Under national execution, where the government has confirmed in writing that local circumstances prohibit the opening of a separate bank account, the resident representative may approve the use of a consolidated central bank account, provided that the disbursement of UNDP funds can be easily traced and audited. Separate record keeping is mandatory, no matter what bank account arrangements are used.

The funds must still arrive in full to the beneficiaries in a timely manner to carry out activities.



7. Unused advances. At the end of a programme or project, the designated institution returns any unused advances to the UNDP country office. The funds are credited to the operating fund account through a UNDP-GOVT IOV.

See 6.5.5 for more information on the operating fund account.

8. Any interest earned on the programme or project bank account from the advances is recorded as miscellaneous income through the UNDP-GOVT IOV.

9. The following special procedures apply for projects with budgets of less than $150,000 and a duration of less than one year:

(a) The UNDP country office may provide the advance of funds to the

designated institution in a single instalment at the start of the project. This disbursement is recorded as expenditure against the approved budget lines, through the UNDP-GOVT IOV;

This is done to simplify financial management. Normal procedures still apply, including reporting on results.

(b) The designated institution must send a final financial report marked “Project previously expended on (date)” to the UNDP country office, showing the amount advanced and the expenditure by budget sub-line. Any significant changes from the original budget and remaining funds must be adjusted on the GOVT IOV.

This statement on the report is made to avoid duplication of entry and to alert the UNDP country office that the report is for review and adjustment only.

6.5.4 Direct Payments 1. The designated institution may request UNDP to make direct payments

to other parties for goods and services provided to the programme or project.

2. The designated institution may forward to the UNDP country office a standard form “Request for direct payment”, duly completed and signed by the designated institution. The designated institution keeps original documents. The UNDP country office provides the relevant documentation (inter-office vouchers, disbursement vouchers, copies of cheques, and other documents) to the designated institution.

The standard form “request for direct payment” can be found in the Programming Manual Reference Centre.

6.5.5 Recording and Authorising Advances and Direct Payments through FIM 1. FIM is designed to facilitate the management and monitoring of project

budgets, expenditure and financial reporting by UNDP country offices. The system provides information on the availability of funds and produces the Combined Delivery Reports (CDR). FIM also maintains requests for advances and direct payments and electronically transfers authorised payment requests to WINFOAS that generates the proper payment instruments.

See the FIM/WINFOAS Guidelines, in the Programming Manual Reference Centre on the UNDP Intranet.



2. To verify that sufficient funds are available prior to making payments, and to ensure the validity, consistency and integrity of financial data processed through FIM and WINFOAS, the following internal controls must be put in place:

(i) The staff who record and authorise payments through FIM must be different from the staff who operate WINFOAS.

The programme staff use FIM for requesting payments and reporting and monitoring

(ii) The committing and verifying officers must ensure that all payments to or on behalf of a NEX project and/or NGO execution project and charged to UNDP-GOVT IOV are supported by a request form approved by the designated institution.

expenditure for programmes/projects that they are responsible for.

6.5.6 Financial reporting. The three main reports are:

(a) The financial report; (b) The combined delivery report; (c) The expenditure statement from United Nations agencies (also

called project delivery reports or expenditure reports).

1. The financial report

(a) The financial report is prepared by the designated institution in order to:

i. Record the expenditures in the current period against the

advance of funds received;

For instructions on how to produce a financial report, see annex 6D. The period is normally three months. See 6.5.3. on advance of funds.

ii. Request an advance of funds for the next period in line with the programme or project work plan and corresponding budget.

Ideally, when preparing the financial report the partners should also discuss and update the work plan and verify if

(b) The designated institution must submit the financial report to the UNDP country office each time a request for advance is made. The review of the financial report should be linked to the substantive reporting on progress towards results and to monitoring;

the activities and inputs remain valid to ensure progress towards results.

(c) The key steps in processing a financial report are:

i. The designated institution sends a signed financial report to the UNDP country office no later than 15 days after the end of the period covered by the last advance;

ii. The programme officer in the UNDP country office reviews the

financial report, verifies that resources are available and uses the work plan to verify that the amount requested does not exceed the expenditures that may reasonably be expected during the next period. The officer also verifies the use of funds for the previous period and whether progress is being made towards the achievement of the expected results;



iii. The UNDP country office records the expenditures into the FIM and uses the financial report to prepare the combined delivery report;

iv. For the final period of the programme or project, the designated

institution certifies “FINAL” on the financial report.

(d) UNDP considers any funds transferred by the designated institution to its contractors as expenditures, which are consequently recorded against the appropriate budget sub-lines.

The designated institution remains responsible for monitoring the spending and activities of its contractors.

(e) If there are errors in the financial report, the designated institution makes corrections in consultation with the UNDP country office. The UNDP country office must follow-up with the designated institution if the financial report has not been received 15 days after the end of the period or if the institution reports no expenditures against the advance. In such cases, the country office must promptly examine any problems with reporting, disbursement or accounting, and propose measures to overcome them. The country office informs the Country Programme Accounting Unit of the actions taken to solve the problems.

Monitoring should ensure that such problems are identified before they become serious. As a last resort, the resident representative may suspend UNDP assistance. See 6.7.3. on suspension and cancellation.

2. The project delivery report. United Nations agencies undertaking activities under national execution must report their expenditures every quarter with a project delivery report. This report is made in accordance with the schedule of expected advances in the letter of agreement established between the designated institution and the United Nations agency. The report shows the expenditures by component and budget sub-line. The report is submitted to the designated institution through the UNDP country office not later than 30 days after the end of each quarter.

3. The combined delivery report

(a) The combined delivery report (CDR) summarises all programme or project expenditures at the end of each quarter, for the periods ending 31 March, 30 June, 30 September, and 31 December. The CDR comprises the disbursements of:

i. The designated institution, from advances of funds; ii. The UNDP country office, as direct payments or for country

office support services to national execution; iii. UNDP headquarters as direct payments; iv. Other UNDP country offices as direct payments; v. United Nations agencies under national execution; and vi. United Nations agencies under NGO execution.

The UNDP country office generates the CDR using the FIM.



(b) The key steps for processing a combined delivery report (CDR) are:

i. The UNDP country office verifies that expenditure reported by

the executing and implementing agents is correctly entered in FIM.

ii. To ensure the accuracy and completeness of the CDR, data relating to advances and direct payments maintained in FIM must be reconciled with the data processed and maintained in WINFOAS through the use of the WINFOAS Data Import Facility.

Refer to the corresponding FIM User Guide for detailed instructions.

iii. The UNDP country office also checks the payments made through Headquarters and other country offices against the report submitted by Headquarters.

The aim of this reconciliation is to ensure that payments made and charged to

iv. The UNDP country office sends the CDR to the designated institution. The designated institution verifies and certifies the report within 30 days of receipt, and returns it to the country office. If there are discrepancies, in the records of the UNDP country office and the designated institution, the parties must consult each other and agree on corrective action.

Government IOV through WINFOAS, as well as payments made by other country offices and Headquarters, are recorded correctly in FIM.

v. For the final period of the programme or project, the designated institution certifies “FINAL” on the combined delivery report.

(c) The year-end report constitutes the official record of expenditure for the past year. The annual mandatory PSD or project budget revision must reflect the figures of the report.

(d) The designated institution arranges for the year-end report to be audited promptly to facilitate the completion of the audit by the deadline of 30 April.

See 6.8 for audit procedures.

6.5.7 Recording transactions at UNDP headquarters 1. To keep track of advances under national execution and NGO

execution, the Country Programme Accounting Unit establishes an operating fund account (OFA) for each programme or project. The OFA records:

(a) The advances of funds made to the designated institution;

(b) The disbursements made by the designated institution out of the advances;

Expenditures consist of disbursements and unliquidated obligations.

2. The UNDP country office may not close a programme or project financially unless there is a zero balance in the OFA as shown on the OFA statement prepared by the Country Programme Accounting Unit.



3. Payments made by the UNDP country office or by UNDP headquarters on behalf of the designated institution are not treated as advances of funds. Accordingly, they are not recorded in the operating fund account. These direct payments are recorded as disbursements by budget sub-line.

4. Expenditures reported by United Nations agencies for a nationally managed programme or project are recorded as expenditures also by budget sub-line.

6.5.8 Financial management under direct execution

1. Under direct execution, there is no special format for financial reporting. UNDP headquarters prepares the combined delivery report (CDR) on the basis of the IOVs received from the country office and expenditure reports from UN agencies. UNDP headquarters sends the CDRs to the country office. The project manager verifies the accuracy of the CDR before the resident representative signs it and returns it, within 30 days of receipt, to the Country Programme Accounting Unit of BOM.

2. The country office must establish internal systems to keep track of the financial status of the project at all times, to control expenditures, to handle outstanding obligations, to make payments and to monitor the performance of contractors.

See the DEX guidelines chapter 6 on how to establish such systems.

3. In accordance with UNDP’s expenditure control policy, the authority to commit, to verify and to disburse funds must be segregated.

See 6.3.5.

(a) The commitment of funds is the action that creates an obligation against UNDP resources, such as signing a contract. This function is performed by the person supervising the project.

(b) The approval of a payment is an authorization to disburse funds. This is done by the Finance Section, based on justification provided by the project manager or programme officer.

(c) The disbursement or actual payment is done by the accounting section.

6.6 Revisions to programme support documents and project documents

6.6.1 Policies 1. A PSD or project document may be revised at any time by

agreement among the signatories to the document. The purpose of revising it is to make substantive or financial adjustments and improvements to a programme or project.

Financial adjustments are called “budget revisions”.



2. Whenever progress towards the achievement of results is not satisfactory, the UNDP country office must take steps to resolve the problems and, if necessary, to modify the design of the programme or project. A formal change in the design is called a substantive revision.

Budget revisions of GEF projects must be

3. The UNDP country office must also ensure that a budget revision is made at least once a year, to keep the budget up to date.

copied to UNDP-GEF headquarters.

4. The policies and procedures set out in chapters 4 and 5 for the formulation and approval of PSDs and project documents also apply to their revision.

If assistance beyond seven years is justified,

5. UNDP may not approve a revision that extends the total duration of its support to a single national programme or project beyond seven years.

a new PSD or project must be formulated. Also, the current one may have to be evaluated. See 7.4.1 para. b for policies on

6.6.2 Substantive revisions 1. Substantive revisions are made in response to changes in the

development context or to correct flaws in the design that emerge during implementation. Examples of such flaws justifying revision are unclear objectives, unclear expected results or absence of indicators, making it difficult to measure success; unrealistic assumptions or conditions that are not materialising; activities that are insufficient to produce the planned outputs. The conversion of preparatory assistance to a full project also constitutes a substantive revision.

evaluation. In some cases, corrections may be introduced in the work plan instead of in a full revision. Example: introduce benchmarks for measuring progress. See 4.4.2.

2. Substantive revisions may be made at any time during the life of the programme or project. They may be prompted by reports, or by monitoring, evaluation or review activities. Where a programme or project is not proceeding as planned, the UNDP country office must discuss with its partners how to improve the situation and raise the issue at the next tripartite review. The designated institution is expected to raise the issue in the annual programme/project report.

See 7.0 on monitoring, reporting and evaluation. When there is a change in the substantive design, the inputs and the budget will also normally need to be changed.

3. Substantive revisions are made through a participatory process involving the key stakeholders and a meeting of the LPAC. They are reflected in a revision document describing changes in the relevant sections of the PSD or project document. The revision document is signed by all the signatories to the original PSD or project document.

See 5.4.2. See annex 6F for the standard revision cover page.

4. Where there are extensive changes to the programme or project and serious difficulties in achieving results are encountered, a redesign may not bring a permanent solution. In such cases, the parties must consider suspension of activities, and, where appropriate, a new PSD or project document must be formulated.

Suspension is covered in 6.7.3.



5. The parties may decide to extend the duration covered by a PSD or project document to take account of delays in implementing certain activities and therefore in producing the results. Such extensions do not entail a substantial change in the overall budget. If one or more of the parties proposes a substantial change in the budget, it is a sign of a serious defect in the design. The other options set out in this sub-section must then be pursued.

6.6.3 Budget revisions 1. In the interest of sound financial management, budgets must be kept

up to date, whether or not any changes need to be made in the objectives, expected results, outputs, activities, indicators, and inputs, or in the budget total.

2. An annual revision must be prepared and approved by 10 June each year, to reflect the final expenditures for the preceding year and to enable the preparation of a realistic plan for the provision of inputs for the current year.

This is known as the mandatory revision. It is made on the basis of the year-end combined delivery report or project delivery report.

3. A revision may also be prepared every October-November, to update the estimate of expenditure for the current year. To this effect, the designated institution provides to the resident representative and the other signatories to the PSD or project document a report on expenditures every three months.

See 6.5.4 on financial reporting.

4. The designated institution must prepare a budget revision within two months of the approval of a new PSD or project document to reflect the actual starting date and to enable the preparation of a realistic plan for the provision of inputs for the first full year.

5. The designated institution may incur expenditures that exceed its assigned annual budget by four per cent or by US $20,000, whichever is higher, in order to cover differences between actual and pro-forma costs.

6.6.4 Procedures 1. Revisions may be prepared as a follow-up to recommendations or

decisions of tripartite review meetings, to changes in the work plan or to monitoring reports. The designated institution normally initiates the revision where it appears that an adjustment between budget lines would be more likely to produce results or where the budget is insufficient to cover the agreed inputs. Substantive revisions must be agreed on between the partners.

Any partner may, however, initiate a revision.

2. All signatories to the original PSD or project document must sign the revision when it involves a change in the objectives or outputs.



3. In other cases, the resident representative alone may sign provided the other signatories have no objections. This procedure may be applied, for example, to annual mandatory revisions, or when the purpose of the revision is only to rephase activities.

4. A revision of the PSD or project document contains the following:

(a) Cover page;

For the cover page format, see annex 6F.

(b) Justification. This is provided on the cover page if the revision is straightforward, such as a mandatory budget revision. Otherwise, any changes in objectives, outputs, activities or inputs must be explained on separate pages;

UNDP enters the budget

(c) Revised output/activity/input and budget tables.

revision into the FIM system.

6.6.5 Revisions in special development situations 1. A substantive revision may be needed when a country faces an

emergency, or a “special development situation”. Such a revision may include a change in the management arrangements for a programme or project. The resident representative is authorised to modify the management arrangements after consulting the other parties in writing.

2. In emergency situations, the achievement of expected results may be jeopardised and different results may be required than those expected through ongoing programmes and projects. In such cases, the resident representative may need to suspend ongoing assistance.

See 6.7.3 on suspending programmes and projects and 2.4.9 para. 3 on suspending the CCF.

6.7 Programme and project completion

6.7.1 Operational completion

1. A programme or project is operationally complete when the last UNDP-financed inputs have been provided and the related activities have been completed. The designated institution promptly notifies the UNDP country office when this has been done. Should the designated institution not do so, the UNDP resident representative must determine when the programme or project is operationally complete.

When completion is approaching, the designated institution must prepare a terminal report. See 7.3.5. The partners should also consider the need for an ex-post evaluation to determine the impact and sustainability.

2. When a programme or project is operationally complete, the parties must agree on the disposal of any equipment that is still the property of UNDP. This is done in accordance with the procedures in 6.4.5 para. 3.



6.7.2 Financial completion

1. A programme or project is financially completed when:

(a) It is operationally completed or has been cancelled;

(b) The designated institution has reported all financial transactions to UNDP;

(c) UNDP has closed the accounts;

For national execution, the accounts can be

(d) The UNDP resident representative has signed a final budget revision.

closed only when the operating fund account is at zero. See 6.5.5. on recording transactions.

2. Programmes and projects should be financially completed not more than 12 months after being operationally completed or after the date of cancellation. During these 12 months, the designated institution is required to identify and settle all financial obligations and to prepare the final revision of the budget. The resident representative must ensure the prompt processing of the final budget revision and the closing of accounts.

3. No adjustments can be made to a financially completed PSD or project document. Should the need arise for an adjustment, the matter must be referred to the Bureau for Finance and Administrative Services at UNDP headquarters.

6.7.3 Suspension and cancellation

1. A programme or project may be cancelled if circumstances arise that jeopardise the achievement of the expected results and where a redesign may not bring a permanent solution.

Suspension is also possible where financial misconduct is suspected.

2. The UNDP resident representative takes the final decision to suspend or cancel a programme or project and confirms this in writing to the parties concerned, in consultation with the government coordinating authority and the designated institution. In keeping with his/her accountability for the use of UNDP resources, the resident representative must cancel programmes and projects that are unlikely to achieve the expected results.

UNDP and the government should also consult, to the extent possible, with the other parties who participated in the formulation of the programme or project.

3. The procedures for cancellation and suspension of a programme or project are as follows:

(a) Suspension. A programme or project is cancelled only after a

period of suspension. During this period, the parties consult and try to resolve the problems by corrective measures. If the problems are resolved, the programme or project activities may be resumed. The resident representative confirms to the parties the date for resuming the activities;

In an emergency situation, it is often clear that measures cannot be taken. If so, UNDP proceeds directly with cancellation.



(b) Cancellation. If the problems have not been resolved in a reasonable period of time, the programme or project must be cancelled. Unspent TRAC-1 or TRAC-2 funds from a cancelled programme or project may be reprogrammed, taking into account the outstanding obligations of the cancelled programme or project. The designated institution proceeds with the steps required for financial completion.

If cancellation means significant changes in the approved CCF, a CCF amendment may be needed. See 2.4.9. For procedures on operational and financial completion, see 6.7.1 and 6.7.2.

6.8 Audit

1. Audit is an integral part of sound financial and administrative management, and of the UNDP accountability framework. UNDP administrative and programme funds are audited regularly and the findings are reported to the UNDP Executive Board. The present section deals with audit requirements for different management options but concentrates on audit for national execution and NGO execution, which is organised at the country level.

Audit should be used together with monitoring and other reports to improve the quality of the activities and of management.

6.8.1 Objective and scope 1. In auditing programmes and projects, the objective is to assure UNDP

that its resources are being managed in accordance with:

(a) The UNDP financial regulations, rules, policies and procedures that apply to programmes and projects ;

An annual audit is required for all nationally executed GEF projects with cumulative expenditures greater than US$20,000.

(b) The PSD or project document and the work plans, including activities, management arrangements, expected results, monitoring, evaluation, and reporting provisions; and

All audit arrangements must be detailed in the PSD or project document.

(c) The key considerations for management, in the areas of management, administration and finance.

See annex 6A on the considerations for capacity for programme and project

2. The audit of programmes and projects must cover, but may not necessarily be limited in scope to, the following:

(a) The rate of delivery ;

management.

(b) Financial accounting, monitoring and reporting;

(c) Systems for recording and reporting on resources;

(d) Equipment use and management;

(e) Management structure, including the adequacy of internal control and record-keeping mechanisms.



3. The audit of programmes and projects must confirm and certify that:

(a) Disbursements are made in accordance with the activities, work plan and budgets of the PSD or project document;

(b) Disbursements are supported by adequate documentation;

(c) Financial reports are fairly and accurately presented and represent correctly the financial position;

(d) Appropriate management structure, internal controls and record-keeping systems are maintained ;

(e) Monitoring and evaluation of activities and the progress towards expected results are undertaken as planned and according to the key considerations for management;

(f) Procurement, use and disposal of equipment are in accordance with the key considerations for management, the procedures governing the programme or project, and UNDP rules;

(g) Satisfactory measures have been taken by the designated institution and by UNDP to comply with the recommendations of prior audits.

6.8.2 Audit and management arrangements 1. National execution. All nationally managed programmes and projects

must be audited periodically. The government coordinating authority will, in consultation with the UNDP country office, draw up an annual audit plan by November of each year. The Office of Audit and Performance Review (OAPR) must be kept informed about audit plans. While the Government is responsible for ensuring that the audit requirements are met, the programme or project may be subject to audit by the auditors of UNDP, and UNDP shall have right of access to the relevant records. Where a United Nations agency participates in nationally managed programmes and projects as an implementing agency, the auditors of the programme or project appointed by the government should restrict the scope of the audit, stating that the audit opinion does not cover expenditures incurred by organizations of the United Nations system. This restriction also applies to expenditures incurred by UNDP.

The audit plan lists the programmes and projects scheduled to be audited for that year, considering among other things, whether the programme or project has previously been audited, the volume of funds, the number of programmes and projects, and the audit workload. Please refer to the OAPR Website for the criteria, which Governments should use in selecting the projects for audit.

2. NGO execution. All NGO-managed programmes and projects must be audited periodically. The audit must be carried out by the auditors of the NGO or by a qualified audit firm, which will produce an audit report and certify the financial statement. The programme or project may be subject to audit by the auditors of UNDP, and UNDP shall have right of access to the relevant records of the NGO. Where a United Nations agency participates in NGO-managed programmes and projects as an

The audit arrangements should also be detailed in the NGO Project Cooperation Agreement. See annex 6E. Please refer to the OAPR website for the criteria, which should guide the determination of the audit arrangements.



implementing agency, the auditors of the programme or project appointed by the NGO should restrict the scope of the audit, stating that the audit opinion does not cover expenditures incurred by organizations of the United Nations system. This restriction also applies to expenditures incurred by UNDP.

3. Agency execution. The audit of programmes and projects managed by a United Nations agency is carried out by the duly appointed auditors of that agency. If a UNDP unit has concerns about the implementation of a project or programme, it should bring this to the attention of the designated institution. If the UNDP unit is not satisfied with the institution's reaction, it may forward the concerns to OAPR.

4. UNDP country office support services and UNDP direct execution. The audit of programmes and projects managed by UNDP whether directly or under country office support services is made through the regular external (United Nations Board of Auditors) or internal audits (audits managed by UNDP’s Office of Audit and Performance Review).

See 6.3.1 on country office support services and 6.3.5 on direct execution.

6.8.3 The audit process 1. The audit must be conducted in conformity with generally accepted

common auditing standards and in accordance with the professional judgement of the auditor. The audit may refer to the standards and terms of reference established for the United Nations Board of Auditors.

See UNDP Financial Regulations and Rules: Article XVII and XII and information annex, or contact OAPR for International Standards on Auditing (ISA) for government audits or for commercial audits.

For GEF projects, a

2. The designated institution must:

(a) Identify and appoint the audit authority. The audit authority, or the process by which the audit authority will be identified, must be mentioned in the PSD or project document;

copy of the annual project audit must be attached to the project implementation review.

(b) Ensure that the audit is performed in accordance with generally accepted auditing standards;

(c) Ensure that the audit report is duly reviewed and will reach UNDP Headquarters (OAPR) via the UNDP country office by 30 April of each year.

3. The UNDP country office must organise briefings with the auditors before the audit exercise and upon the completion of the audit even if the auditors have prior experience of auditing UNDP programmes and projects.

This briefing is expected to enhance the quality of audit. The terms of reference should include the

4. For national execution, the legally recognised auditor of the government normally conducts the audit. However, when this arrangement is not feasible, the designated institution engages a commercial auditor. In the case of NGO execution, the audit is

expected results of the audit.



conducted by the auditors of the NGO or by independent auditors contracted specifically for this purpose.

5. The designated institution is responsible for meeting the costs of audit. In exceptional cases, the UNDP resident representative may approve the use of programme or project funds for audit costs if a commercial auditor carries out the audit. In such case, adequate financial provision for the audit must be included in the programme or project budget and, where appropriate, budgeted on budget line 52.

See 5.2.7 for details of budget lines.

6. The auditors must discuss the findings in the draft audit report with the parties concerned (the designated institution, including appropriate programme or project staff; the government coordinating authority; the UNDP resident representative), and include their comments in the final report.

The purpose of such briefings is to ensure that the findings are correct and to ensure full acceptance of the recommendations.

7. The auditors send the final audit report to the designated institution. This institution distributes it to the UNDP resident representative for review and transmission to OAPR at UNDP headquarters; to the Government coordinating authority; and to other parties concerned, such as contractors and United Nations agencies.

8. The audit report, together with the annual financial report on the status of funds as at 31 December, as certified by the auditors, must reach OAPR at UNDP headquarters via the UNDP country office by 30 April of the following year.

This enables the United Nations Board of Auditors to comment on the report and to incorporate its findings in their own report to the General Assembly and to the

9. The audit report is an integral part of the monitoring and evaluation process. The UNDP country office must take the report into account in the programme or project annual progress review, in evaluations, and in the country review.

Executive Board of UNDP. See 7.0 on monitoring, reporting and evaluation.

10. The designated institution must ensure that appropriate action is taken by the parties concerned to implement audit recommendations. The UNDP resident representative is responsible for establishing a control mechanism within the UNDP country office to follow up on audit recommendations with the designated institution and with programme and project management until they are implemented.

The expected results of audit follow -up include improved management and accountability for project finances in order to pursue results. The actions for follow -up should be included in the

11. The Internal Audit Section, OAPR, follows-up with the UNDP country office and headquarters units to ensure that actions are taken to implement audit recommendations.

work plan of the parties concerned.



ANNEX 6A

CAPACITY FOR PROGRAMME AND PROJECT MANAGEMENT: KEY CONSIDERATIONS The parties concerned with formulation and design, particularly the UNDP country office, the government, and the institution that will manage the programme or project must review the capacities that will be needed. They first determine which of the tasks listed below apply to the programme or project. For each applicable task, the parties then determine what additional measures need to be taken to ensure that the tasks can performed. The measures must be documented for follow-up action. This may be done, for example, through an action plan, an annex to the PSD or project document or through minutes of a design meeting or workshop.

I. TECHNICAL CAPACITY:

Ability to monitor the technical aspects of the programme or project. 1. Undertake regular programme or project visits and monitor progress benchmarks. 2. Ensure that periodic progress and technical reports are received and interpreted. 3. Ensure regular consultations with beneficiaries and contractors.

II. MANAGERIAL CAPACITY

Ability to plan, monitor and co-ordinate activities. 1. Ensure that an annual programme or project review meeting is held. 2. Be able to develop and review an annual work plan. 3. Possess adequate logistical infrastructure: office facilities and space, basic equipment, utilities,

communications. III. ADMINISTRATIVE CAPACITY:

Ability to procure goods services and works on a transparent and competitive basis. 1. Assess the ability of vendors to provide the required quality, quantity and competitiveness of

goods, services and works. 2. Have the authority to enter into contracts. 3. Have standard contracts or access to legal counsel to ensure that contracts establish

performance standards, protect UNDP and the institution’s interests and are enforceable. Ability to prepare, authorise and adjust commitments and expenditures. 4. Have written procedures for identifying the appropriate vendor, obtaining the best price, and

issuing commitments. 5. Have a system for tracking commitments against budget to prevent overspending and for follow-

up on outstanding commitments. Ability to manage and maintain equipment. 6. Have a property ledger (inventory) to track all important details about property and its cost,

annually.



Ability to recruit and manage the best-qualified personnel on a transparent and competitive basis. 7. Be able to staff the programme or project and enter into contract with personnel. 8. Use written job descriptions for consultants or experts. 9. Have standard contracts or access to legal counsel to ensure that contracts establish

performance standards and, protect UNDP and the institution’s interests. IV. FINANCIAL CAPACITY

Ability to produce programme and project budgets. 1. Track commitments, expenditures and planned expenditures against budget on a consolidated

basis. 2. Maintain a programme or project budget showing the timing of planned expenditures, for each year,

by quarter. Ability to ensure physical security of advances, cash and records. 3. Maintain a checking account in a reputable bank and a secure safe for any cash on hand. 4. Have clear procedures on authority, responsibility, monitoring and accountability for handling

funds. Ability to disburse funds in a timely and effective manner. 5. Have written procedures for processing payments to control the risks through segregation of

duties, and transaction recording and reporting. 6. Have monitoring controls, such as independent bank reconciliations. 7. Have a means of verifying receipt of goods or performance of services and proper authorisation. 8. Be able to manage the status of expenditures against budget, and the remaining available

budget. 9. Have a policy of making payments by their due dates as stated on the invoice or in the contracts

and be able to demonstrate performance against this standard. Ability to ensure financial recording and reporting. 10. Have a reporting system that tracks all commitments and expenditures against budgets by line. 11. Have a reporting system that allows programme or project expenditures to be reported to UNDP

quarterly, and which accumulates programme or project-to-date expenditures against budget for management purposes.



The following table describes where to find information on the capacities of a NGO, when NGO execution is considered. It helps the partners to analyse available capacities in accordance with the above list of key considerations for management. (It can of course also be used in cases where the NGO serves as a contractor.) Table: Sources of information for assessing the capacities of an NGO.

What to assess Types of things to look for

1. Roles and functions • Mission statement or charter • Mandate and policies

• Registration with Government or umbrella NGO • Charter document • Annual report • Policy documents • Legal incorporation documents

• Compatibility between the goals of the NGO and purpose of the project

2. Structures and systems • Governing or oversight board • Management structure • Decision-making structure • Financial and budgeting system • Accounting system • Information and monitoring systems • Evaluation and reporting systems • Procurement system • Absorptive capacity

• Organizational outreach • Stakeholders

• Fund-raising capacity

• Database or profile of NGO • Reports on the annual meeting of the governing body • Accounting system • A bank account or bank statements • Audited finances • Well-designed project and programme documents as

well as evaluations and reports • Copies of rules and procedures and examples of

compliance • Example of how procurement is done • Evaluation and monitoring reports and newsletters • Minutes of management or decision-making meetings • NGO organizational chart • Balance sheets: inflow/outflow of funds

3. Competencies • Organizational • Specialisation • Individual expertise • Relevant experience • Past performance in achieving results

• Reports and evaluations of projects undertaken • Assessments of performance by beneficiaries,

stakeholders and clients of NGO • Catalogue describing specialisation and types and length

of experiences to date • Profile of staff, including education and experience

background.

• Staff turnover • Reports from participation in international or regional

meetings • Staff dependency: whether the NGO is dependent on a

single person

• Reports on performance • Use of indicators and benchmarks



What to assess Types of things to look for

4. Resources • Operating budget • Facilities and equipment

• Ability to travel and work at project sites • Proper equipment for area of specialisation • Adequate and legal working conditions and work rules • Annual report of operating budget • Computer capability • Library materials

• Asset ownership: individual or organizational

5. External support Additional partnerships:

• Government • Other organizations

• Partnerships with national and external NGOs • Reports on technical external support from national or

international agencies for operations and capacity-building

6. Others • Independent assessments • Origin of NGO

• Media reports • Research institutions and case studies on NGO

experience • Capacity assessments made by other United Nations

entities or bilateral donors having worked with the NGO • Founding documents/membership base



ANNEX 6B

STANDARD LETTER OF AGREEMENT BETWEEN THE GOVERNMENT AND A UNITED NATIONS AGENCY UNDER NATIONAL EXECUTION

HOW TO USE THIS AGREEMENT

• This agreement is used when a United Nations agency co-operates in carrying out activities under national execution. (It may also be adapted where a United Nations agency undertakes activities under NGO execution.)

• The designated institution prepares this agreement in consultation with the United Nations agency concerned (the signatories to the letter of agreement). If required, the UNDP country office assists with formulating the agreement and liaising with the United Nations agency.

• After signature, the designated institution keeps one original and provides the UNDP country office with a copy. The United Nations agency keeps the other original.

Dear [name of head of United Nations agency], 1. Reference is made to consultations between officials of the [insert name of the government institution designated for the programme/project] (hereinafter referred to as "the designated institution ") and officials of the [name of United Nations agency] ("the United Nations agency") with respect to the participation of the [name of the United Nations agency] in the UNDP support to programme/project [number and title of programme/project], to be managed by the Government. The latter shall be represented for the purpose of such management by the designated institution; [name of the government institution so designated]. 2. The designated institution recognises that [insert name of the United Nations agency] enjoys privileges and immunities under the Convention on the Privileges and Immunities of the Specialised Agencies, to which the Government of [programme country] became a signatory on [insert date of signature of the Convention; information available with BOM/OLPS]. 3. In accordance with the programme support document or project document and with the following terms and conditions, we confirm our acceptance of the services to be provided by the United Nations agency towards this programme or project. Close consultations will be held between the United Nations agency and the designated institution on all aspects of the services to be rendered as described in Attachment 1: Description of services of this letter of agreement. 4. The United Nations agency shall provide the services and facilities described in Attachment 1: Description of services of this letter of agreement. 5. The designated institution shall retain overall responsibility for the UNDP support to the programme/project and shall designate a programme/project co-ordinator [National Director or other title of this official]. 6. The personnel assigned by the United Nations agency to the programme/project, and under contract with the United Nations agency shall work under the supervision of the programme/project co-ordinator. The supervisory arrangements shall be determined in mutual consultation and described in the relevant terms of reference of the personnel. This personnel shall remain accountable to the United Nations agency for the manner in which assigned functions are discharged.



7. In the event of disagreement between the programme/project co-ordinator and the programme/project personnel of the United Nations agency, the programme/project co-ordinator shall refer the matter under dispute to the United Nations agency for the purpose of finding a satisfactory solution. In the interim, the decisions of the programme/project co-ordinator shall prevail. 8. Upon signature of this letter of agreement and pursuant to the budget of the programme support document/project document and the work plan, the designated institution agrees that UNDP headquarters will advance funds to the United Nations agency, according to the schedule of payments specified in Attachment 2: Schedule of services, facilities and payments. 9. The United Nations agency shall submit a cumulative statement of expenditure each quarter (31 March, 30 June, 30 September and 31 December). The statement will be submitted to the designated institution through the UNDP resident representative within 30 days following those dates. The format will follow the standard expenditure report of the United Nations agency, unless otherwise agreed to between the parties [in which case the format will be attached to this agreement]. The designated institution will include the expenditure reported by the United Nations agency in the financial report. 10. The United Nations agency shall recost and rephase the schedule of services and facilities described in Attachment 2, as necessary, when submitting the statement of expenditure to the designated institution. The United Nations agency may incur expenditures that exceed its assigned annual budget by four per cent or by US$20,000.00, whichever is higher, in order to cover differences between actual and pro-forma costs. The designated institution shall adjust its financial records and confirm the revision submitted by the United Nations agency. 11. The United Nations agency shall submit such reports relating to the programme/project as may reasonably be required by the programme/project co-ordinator in the exercise of his or her duties. 12. The United Nations agency shall provide the designated institution with an annual report of non-expendable equipment purchased by the United Nations agency for the programme/project. The report shall be submitted within 30 days following 31 December, and shall be included by the Government designated institution in the main inventory for the programme/project. 13. The United Nations agency shall submit job descriptions and candidates for the posts foreseen in section 1 of Attachment 2 and obtain clearance of the Government designated institution for the personnel to be assigned to the programme/project. 14. Any changes to the programme support document or project document which would affect the work being performed by the United Nations agency in accordance with Attachment 1 shall be recommended only after consultation with the United Nations agency. Any changes to these arrangements shall be effected by mutual agreement through an amendment to this letter of agreement. 15. The arrangements described in this agreement will remain in effect until the end of the programme/project, or the completion of activities of the United Nations agency according to Attachment 2, or until terminated in writing by either party. The schedule of payments specified in Attachment 2 remains in effect based on continued performance by the United Nations agency unless UNDP receives written indication to the contrary by the designated institution. 16. For any matters not specifically covered by this agreement, the appropriate provisions of the programme support document/project document and revisions thereof and the appropriate provisions of the financial regulations and rules of the United Nations agency shall apply.



17. All further correspondence regarding this agreement, other than signed letters of agreement or amendments thereto should be addressed to [name and address of designated institution official]. 18. The designated institution and the United Nations agency shall keep the UNDP Resident Representative fully informed of all actions undertaken by them in carrying out this agreement. 19. Except as provided in paragraph 6 above, any dispute between the designated institution and the United Nations agency arising out of or relating to this letter which is not settled by negotiation or other agreed node of settlement, shall, at the request of either party, be submitted to a Tribunal of three arbitrators. Each party shall appoint one arbitrator, and the two arbitrators so appointed a third arbitrator, who shall be the chairperson of the Tribunal. If, within 15 days of the appointment of two arbitrators, the third arbitrator has not been appointed, either party may request the President of the International Court of Justice to appoint the arbitrator referred to. The Tribunal shall determine its own procedures, provided that any two arbitrators shall constitute a quorum for all purposes, and all decisions shall require the agreement of any two arbitrators. The expenses of the Tribunal shall be borne by the Parties as assessed by the Tribunal. The arbitral award shall contain a statement of the reasons on which it is based and shall be final and binding on the parties. 20. The designated institution shall handle and be responsible for any third-party claim or dispute arising from operations under this agreement against UNDP or the United Nations agency, their officials or other persons performing services on their behalf, and shall hold them harmless in respect of such claims or disputes. The foregoing provision shall not apply where the parties agree that a claim or dispute arises from the gross negligence or wilful misconduct of the above-mentioned individuals. If you are in agreement with the provisions set forth above, please sign and return to this office two copies of this letter. Your acceptance shall thereby constitute the basis for your organisation's participation in the programme/project. Yours sincerely, For the designated institution of [country] [Name and title] [Date] Signed on behalf of the [United Nations agency] [Name and title] [Date]



Attachment 1

DESCRIPTION OF SERVICES Programme/project number: Programme/project title: Work to be performed by the United Nations agency: Provide a summary of the results to be achieved by the United Nations agency, particularly the outputs they are expected to produce. Explain also the activities to be carried out by the United Nations agency. Description of services: Provide a detailed description of the programme/projects inputs by component. This may include identifying candidates for programme/project posts based on terms of reference provided by the Government-designated institution or recruiting already identified candidates. Annexes: Attach, as appropriate, job descriptions for consultants, terms of reference for contracts, technical specifications for equipment items, training nomination forms, etc.



Attachment 2

SCHEDULE OF SERVICES, FACILITIES AND PAYMENTS

Estimated

expenditure by year

Schedule of payments

Section Budget line

Work months

Total costs

Year 1 Year ...n Year 1 Year ...n

Section 1 : Personnel Section 2 : contracts Section 3 : Training Section 4 : Equipment Section 5 : Miscellaneous

Section 6: Micro-capital grants

Total Note: • Expenditures for personnel services may be limited to salary, allowances and other entitlements,

including the reimbursement of income taxes due and travel costs on appointment to the programme/project, duty travel within the programme country or region and repatriation costs.

• The designated institution shall be responsible for providing miscellaneous services such as secretarial assistance; postage and cable services and transportation as may be required by the United Nations agency personnel in carrying out their assignment.

• Adjustments within each of the sections may be made in consultation between the designated institution and the United Nations agency. Such adjustments may be made if they are in keeping with the provisions of the programme support document or project document and if they are found to be in the best interest of the programme or project.



ANNEX 6C

STANDARD LETTER OF AGREEMENT BETWEEN UNDP AND THE GOVERNMENT FOR THE

PROVISION OF SUPPORT SERVICES

HOW TO USE THIS LETTER OF AGREEMENT

• This agreement is used to provide appropriate legal coverage when the UNDP country office provides support services under national execution.

• This agreement must be signed by a governmental body or official authorised to confer full legal coverage on UNDP. (This is usually the Minister of Foreign Affairs, the Prime Minister /or Head of State.) The UNDP country office must verify that the government signatory has been properly authorised to confer immunities and privileges.

• A copy of the signed standard letter will be attached to each PSD and project document requiring such support services. When doing this, the UNDP country office completes the attachment to the standard letter on the nature and scope of the services and the responsibilities of the parties involved for that specific PSD/project document.

• The UNDP country office prepares the letter of agreement and consults with the regional bureau in case either of the parties wishes to modify the standard text. After signature by the authority authorised to confer immunities and privileges to UNDP, the government keeps one original and the UNDP country office the other original. A copy of the agreement should be provided to UNDP headquarters (BOM/OLPS) and the regional bureau.

Dear [name of government official], 1. Reference is made to consultations between officials of the Government of [the name of programme country] (hereinafter referred to as “the Government”) and officials of UNDP with respect to the provision of support services by the UNDP country office for nationally managed programmes and projects. UNDP and the Government hereby agree that the UNDP country office may provide such support services at the request of the Government through its institution designated in the relevant programme support document or project document, as described below. 2. The UNDP country office may provide support services for assistance with reporting requirements and direct payment. In providing such support services, the UNDP country office shall ensure that the capacity of the Government-designated institution is strengthened to enable it to carry out such activities directly. The costs incurred by the UNDP country office in providing such support services shall be recovered from the administrative budget of the office. 3. The UNDP country office may provide, at the request of the designated institution, the following support services for the activities of the programme/project: (a) Identification and/or recruitment of project and programme personnel; (b) Identification and facilitation of training activities; (d) Procurement of goods and services; 4. The procurement of goods and services and the recruitment of project and programme personnel by the UNDP country office shall be in accordance with the UNDP regulations, rules, policies and procedures. Support services described in paragraph 3 above shall be detailed in an annex to the programme support document or project document, in the form provided in the Attachment hereto. If the requirements for support services by the country office change during the life of a programme or project,



the annex to the programme support document or project document is revised with the mutual agreement of the UNDP resident representative and the designated institution. 5. The relevant provisions of the [Insert title and date of the UNDP standard basic assistance agreement with the Government] (the “SBAA”), including the provisions on liability and privileges and immunities, shall apply to the provision of such support services. The Government shall retain overall responsibility for the nationally managed programme or project through its designated institution. The responsibility of the UNDP country office for the provision of the support services described herein shall be limited to the provision of such support services detailed in the annex to the programme support document or project document. 6. Any claim or dispute arising under or in connection with the provision of support services by the UNDP country office in accordance with this letter shall be handled pursuant to the relevant provisions of the SBAA. 7. The manner and method of cost-recovery by the UNDP country office in providing the support services described in paragraph 3 above shall be specified in the annex to the programme support document or project document. 8. The UNDP country office shall submit progress reports on the support services provided and shall report on the costs reimbursed in providing such services, as may be required. 9. Any modification of the present arrangements shall be effected by mutual written agreement of the parties hereto. 10. If you are in agreement with the provisions set forth above, please sign and return to this office two signed copies of this letter. Upon your signature, this letter shall constitute an agreement between your Government and UNDP on the terms and conditions for the provision of support services by the UNDP country office for nationally managed programmes and projects.

Yours sincerely,

________________________ Signed on behalf of UNDP

[Name] [Title: Resident Representative]

_____________________ For the Government [Name/title] [Date]



Attachment

DESCRIPTION OF UNDP COUNTRY OFFICE SUPPORT SERVICES 1. Reference is made to consultations between [insert name of Designated institution], the institution designated by the Government of [name of programme country] and officials of UNDP with respect to the provision of support services by the UNDP country office for the nationally managed programme or project [insert programme or project number and title], “the Programme” [or “the Project”]. 2. In accordance with the provisions of the letter of agreement signed on [insert date of agreement] and the programme support document [or project document], the UNDP country office shall provide support services for the Programme [or Project] as described below. 3. Support services to be provided: Support services (insert description)

Schedule for the provision of the support services

Cost to UNDP of providing such support services (where appropriate)

Amount and method of reimbursement of UNDP (where appropriate)

1. 2. 3.

4. Description of functions and responsibilities of the parties involved:



ANNEX 6D

INSTRUCTIONS FOR THE FINANCIAL REPORT

HOW TO USE THESE INSTRUCTIONS The financial report is used for national execution and NGO execution. The template for the financial report is available in Microsoft Word from the Country Programme Accounting Unit (BOM), and on the Programming Manual webpages of the UNDP Intranet.

Introduction The aim of the financial report is to facilitate the management of the budgets and expenditures of programmes and projects, and the review and approval of the consolidated delivery reports (CDRs). The financial report provides information on cash disbursements by the designated institution and by the contractors (except United Nations agencies) and incorporates a request for advance of funds. It also allows for the reconciliation of outstanding advances of funds. The financial report must be submitted to the UNDP country office no later than 15 days after the end of the quarter. The designated institution must submit the financial report to the UNDP country office every calendar quarter as a minimum and whenever a new advance of funds is required. More frequent reporting is encouraged if agreed to by the UNDP country office and the designated institution. INSTRUCTIONS FOR THE DESIGNATED INSTITUTION How to fill out the top of the financial report Field (a): Name of the designated institution and programme country. Field (b): Number and title of the programme or project. Field (c): Period for which expenditures are being reported. The period can be the quarter or a different

period if advances are made on a more frequent basis. Field (d): Source of funds according to the PSD/project document and budgets. Field (e): Currency in which the advance from UNDP is requested. If the advance is received in US dollars,

write US dollars in this field. If the designated institution receives advances in more than one currency for the same programme/project, complete the financial report for each advance.

Field (f) “Opening balance”: Under ‘Total’ in Column III, fill in the local currency amount of the advance outstanding at the beginning of the period. It must agree with the Closing balance (field j) of the last financial report. For new programmes or projects, this amount will be zero (See requesting an initial advance below). Field (g) “Advance received”: Under the appropriate ‘Month” and ‘Total’ in Column III, fill in the local currency amount of the advance received this period. Only one advance received is recorded for each financial report. Field (h) “Available funds “: Under ‘Total’ in Column III, this is the sum of (f) Opening balance and (g) Advance received. Expenditures by Sub-line: Based on its accounting books, the designated institution records the total expenditures incurred each month against each sub-line for the quarter/period. This includes all expenditures incurred since the last financial report to the date of the end of the quarter/period. All sub-



lines in the approved budget must be included under Description (Column I) and component and budget line (CMBL) (Column II) even if there are no expenditures against the sub-line this quarter/period. No subtotals are required. Field (i) “Total expenditures”: Add up all the expenditures by budget sub-line recorded above under each ‘Month’ and Total columns. Field (j) “Closing balance”: Under ‘Total’ in Column III, calculate (h) Available funds minus (i) Total expenditures. Field (k) “Outstanding obligations”: Under ‘Total’ in Column III, record here all expenditures that the designated institution has a legal obligation to pay in the coming quarter or period but that are not yet paid. This will include any contract amounts to be paid for service rendered, any goods ordered and/or received, invoices not paid, that will be paid in the next quarter. Field (l) “Planned expenditure”: Under ‘Total’ in Column III, record here all cash expenditures planned for the next quarter/period according to the latest programme or project work plan. Do not include expenditures already reflected in (k) Outstanding obligations. Field (m) “Total requirements”: Under ‘Total’ in Column III, state the sum of (k) Outstanding obligations and (l) Planned expenditure. Field (n) “Advance requested”: Under ‘Total’ in Column III, shows the amount of funds needed for the next quarter/period. It consists of (m) Total requirements minus (j) Closing balance. After review and approval, the UNDP country office will provide this amount as advance to the designated institution through a cheque/bank draft/wire transfer. The responsible official of the designated institution must sign and date the financial report before sending it to the UNDP country office. This is normally the National Director. Requesting an initial advance When the designated institution wishes to request an initial advance for a new programme or project, it fills out the top of the financial report and the fields (l) Planned expenditure, (m) Total requirements, (j) Less closing balance (put zero), and (n) Advance requested. All other lines and columns are left blank. The total requirements (m) should cover:

a) the first reporting quarter and b) the estimated time required for the subsequent cash replenishment (i.e. the period from the time

the project submits a financial report to the time it receives the funds from the country office), which is about one month.

In essence, the initial advance needs to cover about 4 months of expenditure. This procedure, however, applies only for the initial cash advance. Subsequent advances should cover only 3 months of expenditure since the project is expected to always have outstanding funds that would reasonably cover anticipated disbursements until the next advance from the country office is deposited in the bank.



INSTRUCTIONS FOR THE UNDP COUNTRY OFFICE

Upon receipt of the financial report, the UNDP country office performs the following steps before submitting the financial report to UNDP headquarters no later than 30 days after the end of the quarter: • Ensure that the opening balance agrees with the closing balance in the last Financial Report; • Verify that the advance received agrees with the UNDP country office records; • Validate the arithmetic of the report; • Check the reasonableness of the outstanding obligations, planned expenditures and advance

requested to the programme/project budget, work plans and other documentation available; • Prepare and provide advances to the designated institution. Advances are transferred as agreed

(bank account arrangements) for the programme or project in question. The designated institution and the UNDP country office may also agree to indicate banking arrangements on the financial report.

• Sign and date the country office approval/signature. The resident representative or another country office staff member to whom he/she has delegated approval authority signs the financial report.



Financial Report

(a) Designated Institution:

(b) Programme/Project number Programme/Project title

(c) For the period: to (d) Source of Funds: (e) Currency:

(I) (II) (III)

Period Amounts

Month 1 Month 2 Month 3 Total

(f) Opening Balance:

(g) Advance Received:

(h) Available Funds: (f) + (g)

Expenditures by Subline:

Description CMBL

(i) Total Expenditures

(j) Closing Balance: (h) - (i)

(k) Outstanding

Obligations:

(l) Planned Expenditures:

(m) Total Requirements: (k) + (l)

(n) Advance Requested: (j) - (m)

Designated institution approval/signature: Country office approval/signature: Title: [Name and title of authorised official] Date:

Title: [Resident Representative] Date:



ANNEX 6E

STANDARD PROJECT COOPERATION AGREEMENT BETWEEN UNDP AND A NON-GOVERNMENTAL ORGANIZATION

HOW TO USE THIS AGREEMENT

• This agreement is used for NGO execution. (It may also be adapted for use when UNDP needs to sign an agreement with institutions with which there is no legal basic agreement, such as inter-governmental organizations.)

• UNDP and the NGO prepare the agreement by filling in the information required in the square brackets. • The final project document is attached to the agreement as an annex. • The resident representative signs two copies of the agreement and a representative of the non-

governmental organization signs one copy. UNDP keeps one (signed) original of the agreement and the non-governmental organization keeps one signed original; a copy of the agreement is attached to the project document.

PROJECT COOPERATION AGREEMENT between

THE UNITED NATIONS DEVELOPMENT PROGRAMME and

[ name of the Non-Governmental Organization] Whereas the United Nations Development Programme ("UNDP") and [name of the non-governmental organization] ("the NGO") have, on the basis of their respective mandates, a common aim in the furtherance of sustainable human development; Whereas UNDP has been entrusted by its donors with certain resources that can be allocated for programmes and projects, and is accountable to its donors and to its Executive Board for the proper management of these funds and can, in accordance with the UNDP Financial Regulations and Rules, make available such resources for cooperation in the form of a Project; Whereas the NGO, its status being in accordance with national regulations, is committed to the principles of participatory sustainable human development and development cooperation, has demonstrated the capacity needed for the activities involved, in accordance with the UNDP requirements for management; is apolitical and not profit-making; Whereas the NGO and UNDP agree that activities shall be undertaken without discrimination, direct or indirect, because of race, ethnicity, religion or creed, status of nationality or political belief, gender, handicapped status, or any other circumstances; Now, therefore, on the basis of mutual trust and in the spirit of friendly cooperation, the NGO and UNDP have entered into the present Agreement.



Article I. Definitions

For the purpose of the present Agreement, the following definitions shall apply: (a) "Parties" shall mean the NGO and UNDP; (b) "UNDP" shall mean the United Nations Development Programme, a subsidiary organ of the United Nations, established by the General Assembly of the United Nations; (c) "The NGO" shall mean [name of the NGO], a non-governmental organization that was established in and incorporated under the laws of [place, country, where the NGO is established], with the purpose of [the purpose or mandate of the NGO]; (d) "The Agreement" or "the present Agreement" shall mean the present Project Cooperation Agreement, the Project Document (Annex), which incorporates the Project Objectives and Activities, Project Work Plan, Project Inputs being provided by UNDP resources, and Project Budget, and all other documents agreed upon between the Parties to be integral parts of the present Agreement; (e) "Project" shall mean the activities as described in the Project Document; (f) "Government" shall mean the Government of [name of programme country, name of concerned national authority]; (g) "UNDP resident representative" shall mean the UNDP official in charge of the UNDP office in the country, or the person acting on his/her behalf; (h) "Project Director" shall mean the person appointed by the NGO, in consultation with UNDP and with the approval of the Government coordinating authority, who acts as the overall co-ordinator of the Project and assumes the primary responsibility for all aspects of it; (i) "Expenditure" shall mean the sum of disbursements made and valid outstanding obligations incurred in respect of goods and services rendered; (j) "To advance" shall mean a transfer of assets, including a payment of cash or a transfer of supplies, the accounting of which must be rendered by the NGO at a later date, as herein agreed upon between the Parties; (k) "Income" shall mean the interest on the Project funds and all revenue derived from the use or sale of capital equipment, and from items purchased with funds provided by UNDP or from revenues generated from Project outputs; (l) "Force majeure" shall mean acts of nature, war (whether declared or not), invasion, revolution, insurrection, or other acts of a similar nature or force;

(m) “Project Work Plan” shall mean a schedule of activities, with corresponding time frames and responsibilities, that is based upon the Project Document, deemed necessary to achieve Project results, prepared at the time of approval of the Project, and revised annually.



Article II. Objective and Scope of the Present Agreement

1. The present Agreement sets forth the general terms and conditions of the cooperation between the Parties in all aspects of achieving the Project Objectives, as set out in the Project Document (Annex of the present Agreement). 2. The Parties agree to join efforts and to maintain close working relationships, in order to achieve the Objectives of the Project.

Article III. Duration of Project Agreement 1. The term of the present Agreement shall commence on [date of start of Agreement] and terminate on [date of end of Agreement]. The Project shall commence and be completed in accordance with the time frame or schedule set out in the Project Document. 2. Should it become evident to either Party during the implementation of the Project that an extension beyond the expiration date set out in paragraph 1, above, of the present Article, will be necessary to achieve the Objectives of the Project, that Party shall, without delay, inform the other Party, with a view to entering into consultations to agree on a new termination date. Upon agreement on a termination date, the Parties shall conclude an amendment to this effect, in accordance with Article XVII, below.

Article IV. General Responsibilities of the Parties 1. The Parties agree to carry out their respective responsibilities in accordance with the provisions of the present Agreement, and to undertake the Project in accordance with UNDP policies and procedures as set out in the UNDP Programming Manual, which forms an integral part of the present Agreement. 2. Each Party shall determine and communicate to the other Party the person (or unit) having the ultimate authority and responsibility for the Project on its behalf. The Project Director shall be appointed by the NGO, in consultation with UNDP and with the approval of the government coordinating authority. 3. The Parties shall keep each other informed of all activities pertaining to the Project and shall consult once every three months or as circumstances arise that may have a bearing on the status of either Party in the country or that may affect the achievement of the Objectives of the Project, with a view to reviewing the Work Plan and Budget of the Project. 4. The Parties shall cooperate with each other in obtaining any licenses and permits required by national laws, where appropriate and necessary for the achievement of the Objectives of the Project. The parties shall also cooperate in the preparation of any reports, statements or disclosures, which are required by national law. 5. The NGO may use the name and emblem of the United Nations or UNDP only in direct connection with the Project, and subject to prior written consent of the UNDP Resident Representative in [name of country]. 6. The activities under the present Agreement are in support of the efforts of the Government, and therefore the NGO will communicate with the Government as necessary. The Project Director will be responsible for day-to-day contacts with the relevant national authorities and UNDP on operational matters during the implementation of the Project. The UNDP Resident Representative will act as the principal



channel for communicating with the Government coordinating authority regarding the activities under the Project Cooperation Agreement unless otherwise agreed with the Parties and the Government. 7. The UNDP Resident Representative will facilitate access to information, advisory services, technical and professional support available to UNDP and will assist the NGO to access the advisory services of other United Nations organizations, whenever necessary. 8. The Parties shall cooperate in any public relations or publicity exercises, when the UNDP Resident Representative deems these appropriate or useful.

Article V. Personnel Requirements 1. The NGO shall be fully responsible for all services performed by its personnel, agents, employees, or contractors (hereinafter referred to as "Personnel"). 2. The NGO personnel shall not be considered in any respect as being the employees or agents of UNDP. The NGO shall ensure that all relevant national labour laws are observed. 3. UNDP does not accept any liability for claims arising out of the activities performed under the present Agreement, or any claims for death, bodily injury, disability, damage to property or other hazards that may be suffered by NGO personnel as a result of their work pertaining to the project. It is understood that adequate medical and life insurance for NGO personnel, as well as insurance coverage for service-incurred illness, injury, disability or death, is the responsibility of the NGO. 4. The NGO shall ensure that its personnel meet the highest standards of qualification and technical and professional competence necessary for the achievement of the Objectives of the Project, and that decisions on employment related to the Project shall be free of discrimination on the basis of race, religion or creed, ethnicity or national origin, gender, handicapped status, or other similar factors. The NGO shall ensure that all personnel are free from any conflicts of interest relative to the Project Activities.

Article VI. Terms and Obligations of Personnel The NGO undertakes to be bound by the terms and obligations specified below, and shall accordingly ensure that the personnel performing project-related activities under the present Agreement comply with these obligations: (a) The personnel shall be under the direct charge of the NGO, which functions under the general guidance of UNDP and the Government;

(b) Further to subparagraph (a) above, they shall not seek nor accept instructions regarding the activities under the present Agreement from any Government other than the Government of [name of programme country] or other authority external to UNDP; (c) They shall refrain from any conduct that would adversely reflect on the United Nations and shall not engage in any activity which is incompatible with the aims and objectives of the United Nations or the mandate of UNDP; (d) Subject to the requirements outlined in the document “UNDP public information disclosure policy”, information that is considered confidential shall not be used without the authorisation of UNDP. In any event, such information shall not be used for individual profit. The Project Director may communicate



with the media regarding the methods and scientific procedures used by the NGO; however, UNDP clearance is required for the use of the name UNDP in conjunction with Project Activities in accordance with Article IV, paragraph 5, above. This obligation shall not lapse upon termination of the present Agreement unless otherwise agreed between the Parties.

Article VII. Supplies, Vehicles and Procurement 1. UNDP shall contribute to the Project the resources indicated in the Budget section of the Project Document. 2. Equipment, non-expendable materials, or other property furnished or financed by UNDP shall remain the property of UNDP and shall be returned to UNDP upon completion of the Project or upon termination of the present Agreement, unless otherwise agreed upon between the Parties, and in consultation with the government coordinating authority. During Project implementation and prior to such return, the NGO shall be responsible for the proper custody, maintenance and care of all equipment. The NGO shall, for the protection of such equipment and materials during implementation of the Project, obtain appropriate insurance in such amounts as may be agreed upon between the Parties and incorporated in the Project Budget. 3. The NGO will place on the supplies, equipment and other materials it furnishes or finances such markings as will be necessary to identify them as being provided by UNDP. 4. In cases of damage, theft or other losses of vehicles and other property made available to the NGO, the NGO shall provide UNDP with a comprehensive report, including police report, where appropriate, and any other evidence giving full details of the events leading to the loss of the property. 5. In its procedures for procurement of goods, services or other requirements with funds made available by UNDP as provided for in the Project Budget, the NGO shall ensure that, when placing orders or awarding contracts, it will safeguard the principles of highest quality, economy and efficiency, and that the placing of such orders will be based on an assessment of competitive quotations, bids, or proposals unless otherwise agreed to by UNDP. 6. UNDP shall make every effort to assist the NGO in clearing all equipment and supplies through customs at places of entry into the country where Project activities are to take place. 7. The NGO shall maintain complete and accurate records of equipment, supplies and other property purchased with UNDP funds and shall take periodic physical inventories. The NGO shall provide UNDP annually with the inventory of such equipment, property and non-expendable materials and supplies, and at such time and in such form as UNDP may request.

Article VIII. Financial and Operational Arrangements 1. In accordance with the Project Budget, UNDP has allocated and will make available to the NGO funds up to the maximum amount of [total amount of Agreement]. The first instalment of [amount of first instalment] will be advanced to the NGO within [number of working days] working days following signature of the present Agreement. The second and subsequent instalments will be advanced to the NGO quarterly, when a financial report and other agreed-upon documentation, as referenced in Article X, below, for the



activities completed have been submitted to and accepted by UNDP as showing satisfactory management and use of UNDP resources. 2. The NGO agrees to utilise the funds and any supplies and equipment provided by UNDP in strict accordance with the Project Document. The NGO shall be authorised to make variations not exceeding 20 per cent on any one line item of the Project Budget provided that the total Budget allocated by UNDP is not exceeded. The NGO shall notify UNDP about any expected variations on the occasion of the quarterly consultations set forth in Article IV, paragraph 3, above. Any variations exceeding 20 per cent on any one- line item that may be necessary for the proper and successful implementation of the Project shall be subject to prior consultations with and approval by UNDP. 3. The NGO further agrees to return within two weeks any unused supplies made available by UNDP at the termination or end of the present Agreement or the completion of the Project. Any unspent funds shall be returned within two months of the termination of the present Agreement or the completion of the Project. 4. UNDP shall not be liable for the payment of any expenses, fees, tolls or any other financial cost not outlined in the Project Work Plan or Project Budget unless UNDP has explicitly agreed in writing to do so prior to the expenditure by the NGO.

Article IX. Maintenance of Records 1. The NGO shall keep accurate and up-to-date records and documents in respect of all expenditures incurred with the funds made available by UNDP to ensure that all expenditures are in conformity with the provisions of the Project Work Plan and Project Budgets. For each disbursement, proper supporting documentation shall be maintained, including original invoices, bills, and receipts pertinent to the transaction. Any Income, as defined in Article I, paragraph 1 (k), above, arising from the management of the Project shall be promptly disclosed to UNDP. The Income shall be reflected in a revised Project Budget and Work Plan and recorded as accrued income to UNDP unless otherwise agreed between the Parties. 2. Upon completion of the Project/or Termination of the Agreement, the NGO shall maintain the records for a period of at least four years unless otherwise agreed upon between the Parties.

Article X. Reporting Requirements 1. The NGO shall provide UNDP and the government coordinating authority with periodic reports on the progress, activities, achievements and results of the Project, as agreed between the Parties. As a minimum, the NGO shall prepare an annual progress report. 2. Financial reporting will be quarterly: (a) The NGO prepares a financial report and submits it to the UNDP Resident Representative no later than 30 days after the end of each quarter, in [the working language of UNDP/programme country as agreed with UNDP]. (b) The purpose of the financial report is to request a quarterly advance of funds, to list the disbursements incurred on the Project by budgetary component on a quarterly basis, and to reconcile outstanding advances and foreign exchange loss or gain during the quarter.



(c) The financial report has been designed to reflect the transactions of a project on a cash basis. For this reason, unliquidated obligations or commitments should not be reported to UNDP, i.e., the reports should be prepared on a "cash basis", not on an accrual basis, and thus will include only disbursements made by the NGO and not commitments. However, the NGO shall provide an indication when submitting reports as to the level of unliquidated obligations or commitments, for budgetary purposes; (d) The financial report contains information that forms the basis of a periodic financial review and its timely submission is a prerequisite to the continuing funding of the Project. Unless the Financial Report is received, the UNDP Resident Representative will not act upon requests for advances of funds from UNDP; (e) Any refund received by an NGO from a supplier should be reflected on the financial report as a reduction of disbursements on the component to which it relates. 3. Within two months of the completion of the Project or of the termination of the present Agreement, the NGO shall submit a final report on the Project activities and include a final financial report on the use of UNDP funds, as well as an inventory of supplies and equipment.

Article XI. Audit Requirements 1. The NGO shall submit to the UNDP Resident Representative in [name of country] a certified annual financial statement on the status of funds advanced by UNDP. The Project will be audited at least once during its lifetime but may be audited annually, as will be reflected in the annual audit plan prepared by UNDP Headquarters (Division of Audit and Performance Review) in consultation with the Parties to the Project. The audit shall be carried out by the auditors of the NGO or by a qualified audit firm, which will produce an audit report and certify the financial statement. 2. Notwithstanding the above, UNDP shall have the right, at its own expense, to audit or review such Project-related books and records as it may require and to have access to the books and record of the NGO, as necessary.

Article XII. Responsibility for Claims 1. The NGO shall indemnify, hold and save harmless, and defend at its own expense, UNDP, its officials and persons performing services for UNDP, from and against all suits, claims, demands and liability of any nature and kind, including their cost and expenses, arising out of the acts or omissions of the NGO or its employees or persons hired for the management of the present Agreement and the Project. 2. The NGO shall be responsible for, and deal with all claims brought against it by its Personnel, employees, agents or subcontractors.

Article XIII. Suspension and Early Termination

1. The Parties hereto recognise that the successful completion and accomplishment of the purposes of a technical cooperation activity are of paramount importance, and that UNDP may find it necessary to terminate the Project, or to modify the arrangements for the management of a Project, should circumstances arise that jeopardise successful completion or the accomplishment of the purposes of the Project. The provisions of the present Article shall apply to any such situation. 2. UNDP shall consult with the NGO if any circumstances arise that, in the judgement of UNDP, interfere or threaten to interfere with the successful completion of the Project or the accomplishment of its



purposes. The NGO shall promptly inform UNDP of any such circumstances that might come to its attention. The Parties shall cooperate towards the rectification or elimination of the circumstances in question and shall exert all reasonable efforts to that end, including prompt corrective steps by the NGO, where such circumstances are attributable to it or within its responsibility or control. The Parties shall also cooperate in assessing the consequences of possible termination of the Project on the beneficiaries of the Project. 3. UNDP may at any time after occurrence of the circumstances in question, and after appropriate consultations, suspend the Project by written notice to the NGO, without prejudice to the initiation or continuation of any of the measures envisaged in paragraph 2, above, of the present Article. UNDP may indicate to the NGO the conditions under which it is prepared to authorise management of the Project to resume. 4. If the cause of suspension is not rectified or eliminated within 14 days after UNDP has given notice of suspension to the NGO, UNDP may, by written notice at any time thereafter during the continuation of such cause: (a) terminate the Project; or (b) terminate the management of the Project by the NGO, and entrust its management to another institution. The effective date of termination under the provisions of the present paragraph shall be specified by written notice from UNDP. 5. Subject to paragraph 4 (b), above, of the present Article, the NGO may terminate the present Agreement in cases where a condition has arisen that impedes the NGO from successfully fulfilling its responsibilities under the present Agreement, by providing UNDP with written notice of its intention to terminate the present Agreement at least 30 days prior to the effective date of termination if the Project has a duration of up to six months and at least 60 days prior to the effective date of termination if the Project has a duration of six months or more. 6. The NGO may terminate the present Agreement only under point 5, above, of the present Article, after consultations have been held between the NGO and UNDP, with a view to eliminating the impediment, and shall give due consideration to proposals made by UNDP in this respect. 7. Upon receipt of a notice of termination by either Party under the present Article, the Parties shall take immediate steps to terminate activities under the present Agreement, in a prompt and orderly manner, so as to minimise losses and further expenditures. The NGO shall undertake no forward commitments and shall return to UNDP, within 30 days, all unspent funds, supplies and other property provided by UNDP unless UNDP has agreed otherwise in writing. 8. In the event of any termination by either Party under the present Article, UNDP shall reimburse the NGO only for the costs incurred to manage the project in conformity with the express terms of the present Agreement. Reimbursements to the NGO under this provision, when added to amounts previously remitted to it by UNDP in respect of the Project, shall not exceed the total UNDP allocation for the Project. 9. In the event of transfer of the responsibilities of the NGO for the management of a Project to another institution, the NGO shall cooperate with UNDP and the other institution in the orderly transfer of such responsibilities.

Article XIV. Force majeure 1. In the event of and as soon as possible after the occurrence of any cause constituting Force majeure, as defined in Article I, paragraph 1, above, the Party affected by the Force majeure shall give the other Party notice and full particulars in writing of such occurrence if the affected Party is thereby rendered



unable, in whole or in part, to perform its obligations or meet its responsibilities under the present Agreement. The Parties shall consult on the appropriate action to be taken, which may include suspension of the present Agreement by UNDP, in accordance with Article XIII, paragraph 3, above, or termination of the Agreement, with either Party giving to the other at least seven days written notice of such termination. 2. In the event that the present Agreement is terminated owing to causes constituting Force Majeure, the provisions of Article XIII, paragraphs 8 and 9, above, shall apply.

Article XV. Arbitration The Parties shall try to settle amicably through direct negotiations, any dispute, controversy or claim arising out of or relating to the present Agreement, including breach and termination of the Agreement. If these negotiations are unsuccessful, the matter shall be referred to arbitration in accordance with United Nations Commission on International Trade Law Arbitration Rules. The Parties shall be bound by the arbitration award rendered in accordance with such arbitration, as the final decision on any such dispute, controversy or claim.

Article XVI. Privileges and Immunities Nothing in or relating to the present Agreement shall be deemed a waiver, express or implied, of any of the privileges and immunities of the United Nations and UNDP.

Article XVII. Amendments The present Agreement or its Annexe may be modified or amended only by written agreement between the Parties. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have on behalf of the Parties hereto signed the present Agreement at the place and on the day below written. For the NGO: For UNDP: Signature: _______________________ Signature: ____________________ Name: _______________________ Name: _______________________ Title: _______________________ Title: _______________________ Place: _______________________ Place: _______________________ Date: _______________________ Date: _______________________



ANNEX 6F

STANDARD REVISION COVER PAGE

Government of ________________________________________

UNITED NATIONS DEVELOPMENT PROGRAMME

PSD number: ABC/97/006 PSD title: Rural employment Source of funds: 01 Management arrangement:

National execution

Designated institution: Ministry of Agriculture

New/Revision code: C Revision reason:

Mandatory Operational start date:

01/06/97 Field work completion date: dd/mm/yy Financial completion date: dd/mm/yy

Initial/revised input UNDP Previous input - Rev. A (line 99) $ - Revised input - Rev. B (line 99) $ - Input increase/decrease $ - UNDP $ - Government cost-sharing $ - Financial institution $ - Third party cost-sharing $ - Administrative and operational services: Previous AOS input $ - Revised AOS input $ - AOS input increase/decrease $ UNDP $ - Government cost-sharing $ - Financial institution $ - Third-party cost-sharing $ -

Justification: This mandatory revision reflects the actual year-end expenditure for 1997. Project inputs have been re-phased to 1998, accordingly. [For substantive revisions, explain on the cover page how and where the revision was agreed to, and say that the justification and detailed changes are provided in attached pages.] On behalf of: Signature Date Name/Title



ANNEX 6G

Guide to Processing WINFOAS and FIM Transactions

1. Although the current version of WINFOAS allows the direct processing of payments relating to NEX projects, all advances and direct payment requests, including payments to be effected through Headquarters and other country offices, must be processed through FIM. This procedure must be strictly followed to ensure the reliability, integrity and accuracy of data maintained in and reported from FIM.

2. Duly completed and signed Financial Reports and requests for direct payment form the basis for

entering payment details in FIM. FIM checks availability of budget before recording requests for advances and direct payments (refer to the corresponding sections of FIM User Guide for detailed instructions).

3. Next, the designated staff verify, authorise and send payment requests electronically to WINFOAS,

using the “Send Direct Disbursement Facility (DDF)” of FIM. The supporting documentation to these requests (i.e. the original Financial Report and direct payment requests) is provided to the WINFOAS operator for attaching to the final disbursement voucher.

4. The WINFOAS operator loads the payment requests received through FIM, using the Disbursement

Facility of WINFOAS. These requests are validated on-line. Invalid records are kept in an error file. The error log must be sent back to the FIM operator to take the necessary corrective actions.

5. Valid FIM payment requests are processed through WINFOAS. The supporting documents (i.e. the

Financial Report and Direct Payment Requests) must be attached to the disbursement vouchers that must be the basis for preparing cheques or bank transfer orders.

6. The certification and approval for advances and payments initiated through FIM and processed in

WINFOAS must follow the standing financial rules and regulations.



ANNEX 6H

DIRECT EXECUTION - ROLES AND RESPONSIBILITIES 1. INTRODUCTION

In most UNDP projects, the responsibilities of UNDP, as funding agency, are separate from those of the agency responsible for managing or executing the project. However, in direct execution, UNDP assumes the role and responsibilities of both funder and manager. A key challenge in direct execution, therefore, is to institute mechanisms to ensure that there is no loss of transparency and accountability.

2. THE COUNTRY OFFICE

The country office that receives authority for direct execution is responsible for: a. Applying the provisions of the UNDP core manuals (Programme, Finance, Personnel,

MOM) and related policies and in formulating, implementing, monitoring and evaluating projects;

b. Ensuring that the costs of executing a project directly are charged in full to the project budget.

c. Keeping headquarters (the regional bureaux) informed of the status of DEX projects focusing on the experience with DEX as a modality; its cost-effectiveness; the additional workload on managers; other accountability issues.

d. Making the greatest possible use of other partners (United Nations agencies, NGOs, representatives of beneficiaries for example) in formulating, implementing, monitoring and evaluating project activities. Ensuring that DEX project inputs are included in the applicable office databases (e.g., the Country Office Suite), and that annual progress reports (APR), and tripartite review reports are accessible on the intranet.

3. THE REGIONAL BUREAU

The role and responsibilities of the regional bureau include: a. Deciding on the delegation of DEX authority to a Resident Representative, based on the

criteria set out in the Programming Manual and the Associate Administrator’s Circular. b. Monitoring the use of DEX authority by the country offices, ensuring that they receive any

needed support from headquarters and providing regular reports on DEX in their region to the Associate Administrator.

4. BUREAU OF MANAGEMENT (Finance Director, Policy Division, Budget, Treasury, DRPC)

(BOM) a. Assessing the capacity of the country office to handle direct execution, the cost recovery

arrangements, legal implications, etc. b. Preparing reports for the Executive Board on the use of DEX.

5. EMERGENCY RESPONSE DIVISION (ERD)

a. Providing technical, human and material support for the country offices concerned (jointly with Regional Bureaux, BOM, and BDP).

b. Providing the secretariat of the Crisis Committee. c. Ensuring that lessons learned in CSDS are shared among country offices.



6. OPERATIONS SUPPORT GROUP (OSG)

a. Assessing the effectiveness of the overall arrangements on the delegation of authority to approve direct execution, particularly from the perspective of the accountability of the Associate Administrator.

b. Supporting the Associate Administrator in the review of requests for direct execution that fall outside the scope of the authority delegated to Regional Bureaux and Resident Representatives.

7. OFFICE OF AUDIT AND PERFORMANCE REVIEW (OAPR)

a. Carrying out audits b. Conducting internal audits of selected DEX projects c. Liaising with the UN Board of Auditors to ensure sufficient audit coverage for external

audit purposes. 8. BUREAU FOR DEVELOPMENT POLICY (BDP) (Applied Research and Operational Policies

Group) a. Developing policies, procedures and guidelines on execution issues. b. Supporting training and capacity building on various execution modalities including NEX

and DEX.


Chapter 7: MONITORING, REPORTING AND EVALUATION Page 1

Contents Page 7.0 MONITORING, REPORTING AND EVALUATION 7.1 Policy framework 7.1.1 General policy statements 7.1.2 Coverage 7.2 Monitoring and evaluation during the programme and project

cycle

7.2.1 Definitions 7.2.2 Integrating monitoring and evaluation into the programme

and project cycle

7.3 Monitoring 7.3.1 Policy on monitoring coverage 7.3.2 Field visits 7.3.3 Annual programme/project report 7.3.4 Tripartite review 7.3.5 Terminal report 7.4 Evaluation 7.4.1 Policies on evaluation coverage 7.4.2 Responsibilities for ensuring compliance with policies on

evaluation coverage

7.4.3 Country-level evaluation plan 7.4.4 Types of evaluations 7.4.5 Planning and managing an evaluation 7.4.6 The evaluation report and the project evaluation information

sheet

7.4.7 Implementation of evaluation recommendations 7.4.8 Evaluation of projects executed directly by UNDP 7.5 Review and reporting on country and regional cooperation 7.5.1 Annual reviews 7.5.2 Country reviews



Annexes 7A Monitoring and evaluation policies of UNDP (Approved by the

Executive Committee on 6 June 1997)

7B Field visit report form 7C Annual programme/project report form 7D Terminal report form 7E Tripartite review report form 7F Country-level evaluation plan form 7G Structure and content of the country office annual report 7H Structure and content of the regional-ROAR 7I Structure and content of the country review report 7J Contents of the terms of reference for country reviews 7K Approach to clustered country reviews



7.0 MONITORING, REPORTING AND EVALUATION

7.1 Policy framework

7.1.1 General policy statements 1. Monitoring and evaluation are essential management functions that

are interactive and mutually supportive. They help UNDP to ensure accountability in the use of resources entrusted to it; provide a clear basis for decision-making; and offer practical lessons from experience to guide future development interventions.

2. Monitoring and evaluation must be integrated into the programming

cycle to enhance the implementation and achievement of results from current programmes and projects as well as the design of future programmes and projects.

For detailed technical guidance in the development of selected monitoring and evaluation instruments, use also Results-oriented Monitoring and Evaluation: A Handbook for Programme Managers (referred to as M&E Handbook in the rest of this chapter. It may be accessed from the Evaluation office web page on the UNDP

3. Monitoring and evaluation exercises must be results-oriented and include assessments of the relevance, performance and success of UNDP development interventions.

intranet or Internet). See annex 7A for the complete text of the policies approved by the UNDP Executive

7.1.2 Coverage

Committee on 6 June 1997.

1. The policies and procedures on monitoring and evaluation apply to all programmes and projects supported by UNDP. In line with the objective of the United Nations to harmonize monitoring and evaluation policies, funds in association with UNDP must also follow UNDP policies on monitoring and evaluation.

The funds should collaborate with the Evaluation Office in adapting the policies to their specific requirements.

7.2 Monitoring and evaluation during the programme and project

cycle For UNDP-GEF

projects, refer to the comprehensive 7.2.1 Definitions Monitoring and

Evaluation Kit http://www.undp.org/gef/

m&e 1. Monitoring - is a continuing function that aims primarily to provide

the main stakeholders of an ongoing programme or project with early indications of progress or lack thereof in the achievement of programme or project objectives.

While monitoring is done mainly by persons involved in managing a programme or project, evaluation is done by persons who have not been involved in

2. Reporting - is the systematic and timely provision of essential information used as a basis for decision-making at appropriate management levels. It is an integral part of the monitoring function.

designing or managing it.



3. Evaluation - is a time-bound exercise that attempts to assess

systematically and objectively the relevance, performance and success of ongoing and completed programmes and projects.

4. Results – is a broad term used to refer to the effects of a programme

or project. The terms outputs, outcomes and impact describe more precisely the different types of results.

7.2.2 Integrating monitoring and evaluation in the programme and project cycle

See 4.2 for a full explanation of programme and project design.

1. Formulation. For a programme or project to be effectively monitored and evaluated, the following tasks have to be completed during the formulation stages:

(a) Construct baseline data on problems to be addressed; (b) Search for lessons learned from other programmes and projects;

(c) Clarify programme or project objectives;

(d) Establish a set of indicators and benchmarks for monitoring and

evaluating the programme or project results;

(e) Agree on how data will be obtained and used;

(f) Specify reporting requirements (format, frequency and distribution), including the annual and terminal reports;

(g) Establish monitoring and evaluation responsibilities;

(h) Provide an adequate budget for monitoring and evaluation.

(Note: the following figures may provide some guidance in this regard: for monitoring one to five per cent of the programme or project budget; for an evaluation of one project - $35,000 - $40,000; and for a cluster evaluation - $50,000 - $100,000)

2. Appraisal and Approval. It is the responsibility of those appraising

and approving programmes and projects to ensure that appropriate lessons and requirements for effective monitoring and evaluation arrangements are incorporated into the programme or project design.

The LPAC verifies that the tasks have been carried out. See 5.4 on appraisal.



3. Implementation. Monitoring and evaluation during implementation

must provide information that can serve as a basis for making decisions to institute corrective actions or reinforce early signs of success. To the extent possible, participatory monitoring and evaluation mechanisms must be used to enable stakeholders to provide their feedback. This is one way of promoting learning among those involved in the programme or project.

For participatory evaluation, see Who are the Question-makers? A Participatory Evaluation Handbook.

4. Programme or Project Completion. Upon programme or project termination, stakeholders must take stock of experience gained – successes and failures, best and worst practices - and future challenges and constraints. The target groups, the designated institution, the Government and UNDP, as the main stakeholders, should try to achieve the following:

(a) Identify lessons from experience that can potentially be applied to

a broader range of development interventions; (b) Determine which particular groups would benefit most from such

lessons;

(c) Ascertain the best way to disseminate the lessons to those groups.

For information on the terminal tripartite review and the terminal report as mechanisms for drawing and disseminating lessons from experience, see 7.3.4 and 7.3.5.

7.3 Monitoring 7.3.1 Policy on monitoring coverage

1. The policy is as follows:

(a) All UNDP-supported programmes and projects regardless of budget and duration must be monitored;

(b) Monitoring is the responsibility of the designated institution since it is the entity responsible for the overall management of a programme or project;

(c) Country offices must also undertake monitoring actions to ensure

that programmes and projects supported by UNDP at the country level are implemented effectively and efficiently, and are achieving the desired results;

(d) Operational units are responsible for undertaking the monitoring actions described in the present chapter for all programmes and projects.



7.3.2 Field visits

1. Definition and purpose. A field visit is a direct observation of a programme or project at its site. Its purpose is to enable the person making the field visit to obtain a first-hand account of the progress of a programme or project towards achieving the expected results outlined in the work plan.

2. Policy. The resident representative and country office staff must visit all programmes and projects once a year or more frequently, as necessary. Joint field visits by UNDP and other development partners involved in the same types of programmes and projects are encouraged in order to promote a participatory approach to the discussion of similar issues with target groups and other stakeholders.

3. Procedures. A person visiting a programme or project must undertake the following tasks:

(a) Obtain the views of target groups, direct beneficiaries and other

stakeholders on how the programme or project is affecting them and their recommendations for addressing relevant issues. Also determine whether adequate mechanisms are in place for consulting with, and obtaining feedback from, the stakeholders;

(b) Inspect the programme or project site, outputs and services and

assess their adequacy in terms of quality and quantity vis-à-vis the expected results;

(c) Prepare a report immediately after the visit, highlighting

stakeholders’ views as well as his or her own observations and recommendations on how to address any issues concerning the programme or project;

(d) Provide the designated institution with a copy of the field visit

report.

See the policy on participation in 4.1 para.9. See annex 7B - Field visit report form.

4. Action on the field visit report. The designated institution reviews the assessment and recommendations of the report and takes appropriate action. When necessary, the designated institution refers the recommendations for decision by concerned entities or by the tripartite review.



7.3.3 Annual programme/project report

1. Definition and purposes. The APR is an assessment of a particular programme or project during a given year by target groups, programme or project management, government and UNDP. It aims to:

(a) Provide a rating and textual assessment of the progress of a

programme or project in achieving expected results;

(b) Present stakeholders’ insights into issues affecting the implementation of a programme or project and their proposals for addressing those issues;

(c) Serve as an input to any evaluation of the programme or project;

(d) Be a source of inputs to the preparation of the annual and

country reviews of the country cooperation framework.

See 2.4 for information on the CCF.

2. Contents and structure. The APR form is divided into three parts. Part I requests a numerical rating of programme or project relevance and performance as well as an overall rating of the programme or project. Part II asks for a textual assessment of the programme or project, focusing on major achievements, early evidence of success, issues and problems, recommendations and lessons learned. Part III consists of a summary table with two sections: one section reports on resources and expenditures and the other highlights progress toward achieving expected results. Annexes may be included as necessary to provide specific information in support of the rating and assessment indicated.

See annex 7C - Annual programme/project report form. Such additional information could be statistics on indicators or a copy of a training design.

3. Procedures for preparing the APR. The designated institution is responsible for preparing the APR. This preparation must be done in consultation with the stakeholders. Representation of stakeholders in terms of level (i.e., organization, individual) and number will be determined by the programme or project itself. The APR must be ready two weeks prior to the tripartite review (TPR). It may be completed and submitted to the country office at any time during the year.

See 7.3.4 for the procedures for the tripartite review.

4. Actions on the APR. The following actions are taken:

(a) The designated institution submits the APR to the country office two weeks prior to the TPR. The country office circulates it to the TPR participants one week before the TPR meeting;



(b) The representative of the designated institution presents the APR

to the TPR, highlighting policy issues and recommendations for the decision of the participants. The representative also informs the participants of any agreement reached by stakeholders during the APR preparation process on how to resolve operational issues.

7.3.4 Tripartite review 1. Definition and purposes. A tripartite review is a policy-level

meeting of the parties directly involved in a programme or project. It aims: to assess the progress of a programme or project based on the APR; and to take decisions on recommendations to improve the design and implementation of that programme or project in order to achieve the expected results.

2. Policy. A tripartite review must be held once a year. In exceptional circumstances, there may be more than one TPR during a year. A terminal tripartite review must be held towards the end of programme or project implementation.

3. Participants. The following parties participate in the TPR :

(a) The Government: the national coordinating authority and other concerned departments;

(b) UNDP; (c) The designated institution, whether the Government, a United

Nations agency or any other agency; (d) Other main stakeholders, including other United Nations

agencies and other donors, as deemed appropriate.

Note: Since a tripartite review addresses policy issues affecting the programme or project, it is important that these parties be represented by persons in a position to speak authoritatively.

4. Overall responsibility. The resident representative is responsible for organizing a tripartite review, in consultation with the Government and the designated institution, and for ensuring that decisions are taken on important issues.

5. Procedures. The procedures for a TPR are:

(a) Preparing the agenda. The resident representative prepares the agenda, in consultation with the Government and the designated institution. The agenda must include the following topics:

i. Follow-up to previous tripartite review or evaluation of the

programme or project;



ii. APR : assessment of the relevance, potential and actual achievement of results; issues and problems in design and implementation; conclusions; and recommendations;

iii. Decisions: management actions required, the parties

responsible and the time-frame for implementing the actions; iv. Work plan: progress expected before the next tripartite

review, or, in the case of a terminal tripartite review, proposed follow-up to the programme or project, if any;

v. Need for evaluation: a specific recommendation on whether

an evaluation is needed and justifications for such a recommendation;

(b) Circulating documents. The resident representative

circulates the following documents to the participants at least one week before the scheduled tripartite review.

i. Agenda; ii. APR;

iii. Other relevant documents, e.g., evaluation report, outputs

produced by the programme or project such as training material, research reports, etc;

(c) Proceedings. During the proceedings:

i. The senior Government representative presides over the TPR but may also designate the resident representative or the designated institution representative to do so;

ii. The TPR participants review the APR and other agenda

items. If they decide not to accept the recommendations of the APR, an explanation of the basis for such decision must be reflected in the TPR report;

(d) Preparing the tripartite review report. The resident representative prepares the tripartite review report (TRR) and circulates it to the participants within two weeks of the TPR. The TRR must provide a succinct discussion of issues and problems, decisions taken, or in the case of a terminal TRR, any follow-up to the programme or project;

(e) Follow-up to the tripartite review. The designated institution

ensures that the parties concerned implement decisions taken at the TPR.

See annex 7E for the TRR form.



7.3.5 Terminal report 1. Definition and purposes. The terminal report is an overall

assessment of a programme or project by its stakeholders and is prepared towards programme or project completion. The APR for the final year serves as the terminal report. In addition to having the same purposes as the APR, the terminal report also aims to serve as a source of initial lessons from experience and to recommend follow-up activity when necessary.

2. Contents and structure. The terminal report form, like the APR, is divided into three parts - Part I for the numerical rating, Part II for the textual assessment of the programme or project, and Part III, consisting of a summary table with two sections (on resources and expenditures and progress towards expected results, respectively). However, Part II contains additional questions on potential impact, sustainability and contribution to capacity development, and recommendations for follow-up.

See annex 7D - Terminal report form.

3. Procedures for preparing the terminal report. Procedures for the preparation of the terminal report are the same as those for the APR.

4. Actions on the terminal report. Actions taken on the terminal report are the same as those for the APR, with the addition of the following:

(a) After the terminal tripartite review, the resident representative

forwards the terminal report to the regional bureau concerned and to the Evaluation Office at headquarters;

(b) The regional bureau concerned reviews the terminal report and

provides the country office with feedback on it. When required, it also decides on recommendations for follow-up. The regional bureau also uses the report as a source of lessons to improve future as well as ongoing programmes and projects;

(c) The Evaluation Office processes the terminal report to draw lessons learned from the experience of the programme or project, especially those that have the potential for broader application. It enters the information extracted from the terminal report in the database (i.e., CEDAB) to expand its repository of information relating to the evaluation of UNDP programmes and projects. Through CEDAB, the Evaluation Office makes the information available to all UNDP offices.



7.4 Evaluation

7.4.1 Policies on evaluation coverage. Evaluation is an important tool for learning and ensuring accountability. It is not practical, however, to evaluate all UNDP-assisted programmes and projects, considering the magnitude of the costs and time that would be required to do so. Thus, for evaluation to be cost-effective, it should be undertaken on a selective basis. Some evaluations are mandatory; others are not.

1. Mandatory Evaluation. The policy regarding mandatory evaluation is as follows:

(a) Purpose. Evaluation is mandatory in certain cases to ensure:

i. An adequate number of programmes and projects from which lessons can be drawn to support organizational learning; and

ii. Significant financial coverage, i.e., the magnitude of financial

resources represented by programmes and projects evaluated to support the accountability of the Administrator;

(b) Criteria. Evaluation is mandatory in the following situations:

i. When a programme or project has a budget of $1 million or more at any point during the lifetime of the programme or project;

ii. Whenever a second or additional phase of assistance is

being proposed or when UNDP has been supporting an institution (e.g., ministry, department, agency, etc.) for ten years or more; a mandatory evaluation under this criterion must cover all programmes and projects through which UNDP has channeled its support to the institution concerned;

(c) Compliance. Compliance with mandatory evaluations is enforced and used as an indicator for assessing management performance;

The Evaluation Office monitors and reports on the compliance rate for mandatory evaluations to the Administrator,

(d) Deferment of mandatory evaluation. The country office, in consultation with main stakeholders, may defer the conduct of a mandatory evaluation owing to security risks, complex development situations or a crisis. When the situation improves, the mandatory evaluation must be scheduled as part of the country-level evaluation plan;

who then reports on it, as part of the annual report to the Executive Board. See section 7.4.3 for discussion of the country-level evaluation plan.



(e) Justifications for not conducting a mandatory evaluation.

The country office, in consultation with main stakeholders, may decide not to undertake an evaluation that would otherwise be mandatory. Justifiable reasons for such a decision are:

i. The programme or project has been canceled; ii. The programme or project has been evaluated by a

development partner and the substantive concerns of UNDP have been adequately assessed by that evaluation;

(f) Unacceptable reasons. Following are examples of explanations that are not acceptable as justifications for non-compliance with the mandatory evaluation policy:

i. Resource constraints (Funds for evaluation must be provided at the very outset, during the design and approval stages of the programme or project, or added through a budget revision);

ii. Programme or project claimed to be successful (Success

constitutes an even stronger reason to evaluate the programme or project and identify lessons learned and best practices for replication);

iii. Technical review of the programme or project already

conducted or being planned (A technical review has a narrower focus, i.e., technical aspects of the programme or project while an evaluation seeks to assess relevance, performance and success from a broader perspective);

iv. Programme or project completed and closed (Unlike a

cancelled programme or project, this intervention, although completed, could still be subject to a terminal or an ex-post evaluation).

See chapter 7 of the M&E Handbook for examples of innovative

2. Non-mandatory evaluation. Although it is not necessary to evaluate all UNDP-assisted programmes and projects, the evaluation of innovative and strategic programmes and projects is encouraged in order to broaden the knowledge base for improving the quality of future development interventions.

and strategic programmes and projects. Other types of evaluations may also be conducted as country offices and other main stakeholders deem necessary.



7.4.2 Responsibilities for ensuring compliance with policies on

evaluation coverage

1. The following list of responsibilities has been established to ensure that management at different levels fully complies with policies on evaluation coverage:

(a) Country offices. The country offices ensure that evaluations,

particularly those that are mandatory, are undertaken as indicated in their respective country-level evaluation plans. They submit copies of evaluation reports to the Evaluation Office and the regional bureaux;

(b) Regional bureaux. Regional bureaux monitor the

implementation of country-level evaluation plans by the country offices in their regions. When necessary, they follow up the submission of evaluation reports by the country offices;

(c) Evaluation Office. Based on the country-level evaluation plans

submitted by country offices and the evaluation reports it receives, the Evaluation Office reports to the Administrator on the compliance rate for mandatory evaluations. It also reports on other evaluations conducted;

(d) The Administrator. The Administrator reports on evaluations

conducted as part of the annual report to the Executive Board.

7.4.3 Country-level evaluation plan

1. Definition and purpose. An evaluation plan at the country level identifies the different evaluations that will help to assess the relevance, performance and success of UNDP cooperation with the programme country. The types of evaluations that can be included in the country-level evaluation plan are explained in detail below. The plan is a tool for:

(a) Ensuring that country offices comply with the policies on

evaluation coverage; (b) Managing the implementation of the CCF;

(c) Making sure that appropriate evaluations are undertaken from

which lessons can be drawn for future programming.



2. Policy. After the approval of a CCF, each country office must

prepare a detailed, country-level evaluation plan covering the evaluation activities for a rolling three-year period. This is to ensure that there will be sufficient information to feed into the annual and country reviews of the CCF.

See 7.5 on the annual and country reviews.

3. Procedures for preparing and submitting the country-level evaluation plan. The procedures are:

(a) The country office must maintain a list of programmes and

projects with budgets of $1 million and above, those that provide support to a particular institution with the corresponding duration, and those that are considered to be innovative and strategic;

(b) In consultation with the government and other main stakeholders,

the country office prepares the country-level evaluation plan covering a three-year rolling period. Towards the end of the first year of the plan, the evaluations scheduled for the second and third years must be reviewed and revised where necessary. Plans for the subsequent year must also be prepared;

(c) Once completed, the country office submits the plan to the

Evaluation Office through the regional bureau concerned.

See annex 7F for the form to be used. See also chapter 22 of the M&E Handbook for detailed guidance on how to prepare the plan.

7.4.4 Types of evaluations

1. The country-level evaluation plan may include any of the following types of evaluations:

(a) By agent:

i. Internal or self-evaluation: an evaluation conducted by those directly involved in the formulation, implementation and management of the programme or project;

ii. External or independent evaluation: an evaluation conducted

by those not directly involved in the formulation, implementation and management of the programme or project;

Internal evaluations can be valuable because they involve persons who have in-depth knowledge of the operations. External evaluations have the advantages of greatest objectivity and of benefiting from the experiences of other institutions.



(b) By timing:

i. Mid-term evaluation: an evaluation conducted at the mid-

point of programme or project implementation; ii. Terminal evaluation: an evaluation conducted at programme

or project completion; iii. Ex-post evaluation: an evaluation conducted two or more

years after programme or project completion;

(c) By scope:

i. Project evaluation: evaluation of a single project; ii. Programme evaluation: evaluation of a programme (i.e., an

intervention under a programme support document using the programme approach), a CCF, or a portfolio of activities under the same management or fund such as the Global Environment Facility, Agenda 21 and the resident coordinator system;

iii. Sectoral evaluation: cluster evaluation of projects or

programmes in a sector or subsector; iv. Thematic evaluation: cluster evaluation of projects or

programmes addressing a particular theme that may cut across sectors or geographical boundaries;

See the project evaluation information sheet in the Programming Manual Reference Centre.

2. Evaluations may focus on specific issues and processes. In such cases, evaluations may be classified as follows:

(a) Policy evaluation - evaluation of programmes and projects

dealing with particular policy issues at the sectoral or thematic level;

(b) Strategic evaluation - evaluation of a particular issue where timing is especially important owing to the urgency of the issue which also poses high risks to, and has generated widely conflicting views from, stakeholders;

(c) Process evaluation - evaluation of programmes and projects to

assess the efficiency and effectiveness of a particular process or modality adopted.



3. In addition, the country-level evaluation plan may also include a

country portfolio evaluation. This evaluation aims to assess the portfolio of development interventions supported by UNDP and the funds in association with UNDP in a particular country in any given five-year period. The portfolio represents a broad spectrum of initiatives that include programmes, projects, advocacy and other development-related activities.

See chapters 9 and 10 of the M&E Handbook for details on the focus of each type of evaluation and the country portfolio evaluation.

7.4.5 Planning and managing an evaluation 1. The UNDP country office is responsible for ensuring that UNDP

evaluation policies and procedures are complied with in planning and managing evaluations. In particular, they must ensure that all evaluations are:

(a) Carried out at the appropriate time; (b) Follow a methodology (including team composition) that ensures

that critical issues will be objectively examined;

(c) Produce the expected results, as set out in 7.4.6 below.

2. Advance preparation. Once a programme or project has been selected for evaluation, the persons responsible for planning and managing the evaluation prepare for the evaluation exercise by answering the following questions:

(a) Who initiated or is initiating the evaluation? (b) Why is the evaluation being undertaken?

(c) What products are expected from the evaluation exercise?

(d) Who are the evaluation stakeholders?

Answers should be provided before preparing the terms of reference (TOR) for the evaluation.

3. Formulating the terms of reference. The next step in planning for an evaluation is formulating the TOR, a written document that defines, among other elements, the issues that the evaluation should address and the products expected from the evaluation. It serves as a useful tool for ensuring that the evaluation is effectively carried out. The following procedures are suggested when preparing the TOR:

(a) Invest adequate time in formulating and refining the TOR; (b) Involve key stakeholders in the process to reflect their views and

interests in the TOR;

See chapter 23 of the M&E Handbook for details on TOR elements.



(c) Include the following elements in the TOR:

i. Introduction; ii. Objectives of the evaluation; iii. Scope of the evaluation; iv. Issues to be addressed by the evaluation; v. Products expected from the evaluation; vi. Methodology or evaluation approach; vii. Composition and responsibilities of the evaluation team; viii. Implementation arrangements.

4. Organizing the evaluation. Once the TOR is finalized (based on stakeholder’s consensus) the following steps should be taken to organize the evaluation exercise:

(a) Organize the evaluation team. Normally, the government, the

designated institution and UNDP are represented on the team. Objectivity and independence as well as competence in the field covered by the programme or project to be evaluated, are the principal criteria used in selecting team members;

(b) Make necessary logistical arrangements; (c) Arrange for stakeholder participation at various stages of the

evaluation, as appropriate.

5. Managing the evaluation. The UNDP country office assumes a critical role in managing the evaluation exercise being conducted in the field. The responsible country office staff must be thoroughly familiar with the TOR and ensure that the evaluation team is fulfilling the TOR through arrangements such as:

(a) Briefings on the progress of the evaluation; (b) Preparation of an issues report midway through the evaluation to

indicate the preliminary findings of the evaluation;

(c) Validation of preliminary findings with stakeholders;

(d) Formal debriefings.

See chapter 24 of the M & E Handbook for additional guidance on planning an evaluation, using a sub-regional programme as an example.



7.4.6 The evaluation report and the project evaluation information sheet

1. The evaluation report. The main features of the evaluation report are:

(a) Definition and purpose. An evaluation report is an objective

report that contains the evaluators’ assessment in fulfilment of the TOR. It is the product of an independent evaluation team. As such, an evaluation report must not be altered in its substance by the government, the designated institution or UNDP;

(b) Contents of the evaluation report. An evaluation report contains the following core elements:

i. Findings - A finding is a factual statement about the

programme or project based on empirical evidence. Example: Initial tests of the new technology developed by the Agricultural Science and Technology Institute for preventing soil erosion have been positive. However, the new technology has generated only a lukewarm response from the target group of farmers, who are misinformed about its cost implications;

ii. Conclusions - A conclusion is a reasoned judgment based on

a synthesis of empirical findings or factual statements that correspond to a specific circumstance. Example: The research and development programme of the Agricultural Science and Technology Institute is strong in its technical aspects but weak in its linkage with target groups;

iii. Recommendations - A recommendation is a proposal for

action to be taken in a specific circumstance, including the parties responsible for that action. Example: As a strategy to ensure the acceptability of its research results by target groups, the Agricultural Science and Technology Institute should establish a centre for the sharing of information between the target groups and the Institute. Through a systematic information exchange programme, the Institute should provide target users with information on new technologies being developed and obtain their views on how to improve such technologies;

iv. Lessons learned - A lesson learned is learning from

experience that is applicable to a generic situation rather than to a specific circumstance. Example: A strong information centre is essential to an institution dealing with research and

See chapter 14 of the M & E Handbook for detailed information on the evaluation report; chapter 24 for sample outlines of a subregional evaluation report; and chapter 25 for a mid-term evaluation report on a capacity development project.



development (R&D) as a channel for disseminating the results of its R&D programme to target groups and as a mechanism for generating their feedback on the usefulness of such results.

2. The PEIS. The main features of the project evaluation information

sheet are:

(a) Definition and purpose. The PEIS is a presentation of basic information on the project evaluated and the evaluators’ rating and textual assessment. It aims to capture the evaluators’ assessment of a project in a form that allows the Evaluation Office to extract the information easily and enter it in CEDAB. The information from the PEIS constitutes the institutional memory on the relevance, performance and success of UNDP-supported programmes and projects;

(b) Policy. The evaluation team leader must submit the PEIS together

with the evaluation report. Final payment of the team leader’s fee is subject to the submission of a satisfactory evaluation report and a completely filled-in PEIS. In the event that no one from the evaluation team prepares the PEIS, the country office (or headquarters office) that managed the evaluation must hire a person to do the task and the cost for this must be charged against the budget of that office;

(c) Procedures. It is suggested that evaluators, as a team, discuss

and prepare the PEIS once they have agreed on the findings, conclusions, recommendations and lessons learned to be incorporated in their final evaluation report. The team leader makes sure that the PEIS is completed and submitted along with the evaluation report itself.

3. Distributing the evaluation report and the PEIS. The steps to be followed are:

(a) The evaluation team leader submits five copies of the evaluation

report and a copy of the PEIS to the country office concerned;

(b) The resident representative makes sure that each of the following parties receives a copy of the evaluation report:

i. The government: national coordinating authority; ii. The designated institution; iii. UNDP country office(s), regional bureau(x) concerned and

the Evaluation Office;

(c) The Evaluation Office must receive a copy of both the evaluation report and the PEIS.



4. Actions arising from the evaluation report and the PEIS. The following actions may occur:

(a) The designated institution implements recommendations on

operational issues, as it deems appropriate; (b) The designated institution may request a tripartite review to take

decisions on recommendations regarding policy issues;

(c) The main stakeholders of the programme or project (i.e., the target groups, the Government, the designated institution and UNDP) assess the implementation status of the evaluation recommendations when they prepare the APR;

(d) The Evaluation Office reviews the substance and quality of the

evaluation report as a basis for providing feedback on lessons learned. It also enters information from the PEIS in CEDAB.

7.4.7 ImpIementation of evaluation recommendations

1. UNDP must ensure that decisions on evaluation recommendations are made by parties at appropriate levels (e.g., designated institution, UNDP senior management). It must monitor the implementation status of evaluation recommendations that have been accepted through an effective tracking system.

7.4.8 Evaluation of projects executed directly by UNDP

1. In view of the oversight responsibilities of the regional bureau, the country office plans evaluations of DEX projects in collaboration with the regional bureau. In particular, the regional bureau approves the terms of reference and, in agreement with the country office, nominates the team leader.

7.5 Review and reporting on country and regional cooperation 7.5.1 Annual reviews

1. Purpose: (a) The annual review is a management tool that enables country

offices to: i. Maintain an ongoing dialogue with the government on the

country situation and the implementation of the country cooperation framework;

ii. Assess progress towards expected results; iii. Identify any need for adjustments to programmes and

projects as well as to the management of the country office itself;



iv. Lay the basis for planning programmes and projects as well

as country office activities over the next 12 months;

v. Help to maintain an institutional record of operational issues;

(b) The annual review facilitates results-based management and helps to ensure continuous learning;

(c) The annual review is a key element of holistic oversight and

provides the principal building block for the country review;

(d) The annual review is carried out in close collaboration with programme country governments and contributes directly to building national capacity for programme and project management;

(e) The annual review serves as an input into annual assessments of

the progress of the UNDAF, carried out by the United Nations country team under the leadership of the resident coordinator and in collaboration with the government and other partners;

(f) UNDP policy requires country offices to consult with a broad

range of stakeholders during the formulation, implementation, monitoring and evaluation of programmes and projects. In the case of the annual review, principal stakeholders will participate in the annual review meeting. Where this is not possible, the country office will make arrangements for such consultations to be held prior to the annual review meeting;

(g) The annual report emerging from the review process serves as

the only instrument by which country offices report to headquarters on overall programme and management issues during the course of the year other than those reports which are generated through corporate systems such as the Financial Management Information (FIM) system and the Automated Field Office Accounting System (AFOAS).

To minimize work the annual review uses only data and analysis already available from monitoring, evaluation and audit, as well as studies and surveys. Stakeholders are broadly defined as the direct beneficiaries of UNDP-supported programmes and projects, United Nations agencies, bilateral and other multilateral agencies and representatives from civil society and the private sector. Elements of the country office annual report have also been designed to enable partly automated report preparation, based on further development of existing software for the formulation and management of programmes.

2. Scope and timing

(a) The annual review addresses the following issues:

i. Changes in the national context and their implications for the continued relevance, results and sustainability of the CCF and associated programmes and projects;

ii. Progress towards achieving results in the four programme

categories and the special development situations category of the SRF;

The four programme categories of the SRF are: enabling environment for SHD, poverty and sustainable livelihoods, gender and environment.



iii. Progress in the contribution of UNDP support to the achievement of UNDAF objectives;

iv. Support provided to the United Nations system, results

achieved and any issues arising; v. Experience with programme and project as well as country

office management, including application of the programme approach and execution modalities, compliance with monitoring and evaluation policies and procedures, resource availability and utilization, and issues related to country office operations as well as support from headquarters and SURFs;

See 1.3.2 for more information on the elements of the results framework.

(b) The annual review covers all activities supported by UNDP in a programme country, including net contributor countries;

(c) The reporting period for the annual review will be January-

December, the same as the UNDP financial year;

(d) The annual review should take place in time to provide inputs for the country office’s planning for the next 12 months. The report emerging from the review must be submitted to headquarters by 15 December.

3. The review process. The review process includes the following elements:

(a) Preparation

i. The country office reaches agreement with the government coordinating authority on the aims, methods and timing of the annual review;

ii. All institutions designated to manage UNDP-supported

programmes and projects are notified of the annual review to ensure that information on programme and project results is current. This will be done through completion or updating of annual programme and project reports or APRs (annex 7C). APRs are prepared for tripartite reviews (TPRs); they are updated only if the TPR took place more than three months before the scheduled date of the annual review meeting;

If there are any specific issues which the Executive Board or headquarters wish to emphasize in the review in a particular year, the regional bureaux bring them to the attention of country offices, after consultation with central units.

iii. The country office collects and circulates the APRs to all participants prior to the annual review meeting;

iv. It is recommended that the country office conduct an internal

assessment either prior to or following the annual review meeting. The issues that may be addressed could include the implications for UNDP of any significant changes in country

This assessment may be particularly useful for laying the basis for more productive, proactive and issue-oriented interaction between the country office, government and other development partners.



conditions, constraints and opportunities in programme and project management, effectiveness of partnerships (including advocacy), especially though not exclusively with other organizations of the United Nations system, key issues affecting office management and review of the support received and needed from headquarters and SURFs;

(b) Annual review meeting

i. This meeting is co-chaired by a senior member of the

Government, normally from the coordinating authority, and the resident representative. The selection of other participants is jointly decided by the government and country office guided by the main issues to be addressed during the annual review meeting. A special effort must be made to ensure the participation of other organizations of the United Nations system;

ii. Participants aim to continue a dialogue on the evolving country situation, review programme and project performance, including key constraints and opportunities, and reach consensus on follow-up actions, especially any modifications to programmes and projects in the next 12 months;

iii. The country office prepares a brief record of the proceedings,

noting issues requiring further discussion. This record is then endorsed by the government.

See UNDP/PROG/99/3 of 29 October 1999 in the Reference Centre which contains additional guidelines on preparing this report.

4. Preparation of the country office annual report

(a) The country office prepares the annual report according to the format given in annex 7G. This report is based on the outcome of the annual review meeting as well as any internal assessment and consultations with stakeholders. The resident representative submits the annual report, together with APRs, to the regional director;

(b) The annual report is an internal UNDP document. It may be

shared with the government and other stakeholders provided Parts IV (d) and V (on management and support to the country office, respectively) are excluded from the text.

5. Action by regional bureaux

(a) The regional bureau uses the annual reports, together with a review of its regional cooperation framework (RCF), to: (a) undertake an assessment of regional trends, UNDP performance, key issues arising and best practices; and (b) to prepare a summary of comments, suggestions and requests received from country offices concerning support. The assessment and

See annex 7H for the regional ROAR format [forthcoming].



summary undertaken by the regional bureau are consolidated into a short regional results-oriented annual report (ROAR). The regional ROAR is shared with all country offices and SURFs in the region, other regional bureaux and central units.

(b) The regional bureau also shares country annual reports and APRs, upon request, with the Evaluation Office, Office of Audit and Performance Review, Office of Human Resources and the Bureau for Finance and Administrative Services.

6. Review by the Operations Group

(a) The regional bureau submits its ROAR to OG. OG: (a) reviews UNDP performance in the region; (b) examines any lessons learned and best practices together with their implications for UNDP operations at the country, subregional, regional and global levels; and (c) considers issues relating to country office capacity and support from headquarters and SURFs.

7. Submission to the Administrator

(a) The OG Secretariat (OSG) submits the regional ROAR, together with the observations of OG, to the Administrator. Any comments he/she may have are forwarded to the Bureau for follow-up action;

(b) The regional ROAR, together with the reactions of OG and the

comments of the Administrator, are consolidated by BOM into the corporate ROAR for submission to the Executive Board.

8. Outputs of the annual review. The principal outputs of the annual review are:

(a) A country office annual report with narrative text of five pages,

excluding a one-page executive summary and annexes; (b) A record of the proceedings at the annual review meeting. This is

kept for reference in the country office; (c) A regional ROAR prepared by the regional bureau based on the

country office annual reports and a review of the RCF. It should have a maximum length of 10 pages, excluding the executive summary and any annexes.



9. Financing. Annual reviews are carried out using existing resources

of the government, the country office and programmes and projects.

10. Follow-up. The follow-up actions and the institutions responsible for carrying them out are: (a) Providing feedback to country offices on their annual reports:

done by the regional bureaux within three weeks of receiving the report;

(b) Revising programme and project objectives, strategies and work

plans: done by the government, other national and international partners and UNDP;

(c) Preparing the country office plan for the next 12 months: done

by country offices;

(d) Providing support requested by country offices: done by regional bureaux, OSG and central units;

(e) Reporting on and, if required, modifying compacts: done by

directors of regional bureaux and resident representatives.

7.5.2 Country reviews

See the country review guidance notes in the Programming Manual Reference Centre on the UNDP Intranet.

1. Purpose

(a) The country review:

i. Enables the Administrator to account to the Executive Board on the use of UNDP resources at the country level;

ii. Generates assessments of country-level performance in

terms of results (outcomes and impact) and sustainability;

iii. Suggests clear directions, based on lessons learned, for UNDP support to programme countries;

iv. Examines the adequacy of country office capacity and future

requirements for support.

The UNDP country review responds to the requirements of the Executive Board (decision 96/7 and comments made at the third regular session of 1997) for monitoring results achieved through country cooperation frameworks (CCFs). It also enables UNDP to assess and report on the country-level strategic results framework.

(b) The findings of the country review will be one of the major inputs used to: i. Revise an existing or prepare a new CCF as well as associated

programmes and projects; ii. Revise the country strategic results framework;



iii. Provide an assessment of the contribution of UNDP support to the achievement of the objectives of the UNDAF;

iv. Confirm or amend TRAC 1.1.2 assignment for the next

programming period; v. Confirm or amend authority delegated to the resident

representative for programme and project approval; vi. Encourage learning on a broad range of operational and

substantive issues, including best practices; vii. Identify, secure and monitor provision of any assistance

required by country offices and programme country governments to act on agreed recommendations;

viii. Promote experience sharing with the United Nations country

team; ix. Inform donors about the use of resources by UNDP to

advance its mission in programme countries.

2. Scope. The country review will address the following issues:

(a) National context. Major changes in development conditions, national policies and programmes as well as cooperation with other organizations of the United Nations system and the international community. Implications for the continued relevance and expected results of UNDP support;

(b) Programme performance. In the four programme categories of

the SRF, and in the special development situations category, assess the:

i. Extent of focus in the CCF and application of the guiding

principles endorsed in Executive Board decision 98/1;

The four programme categories of the SRF are: enabling environment for SHD, poverty and sustainable livelihoods, gender and environment. See Programming Manual Reference Centre for the Executive Board decision 98/1 and

ii. Planning for and achievement of results as anticipated in the CCF, specified in associated programme support documents and project documents and reflected in the SRF;

iii. Scope and effectiveness of advocacy;

iv. Level of support for the follow-up to global conferences;

v. Progress in the achievement of UNDAF objectives made

possible through UNDP support;

the full text of the guiding principles. See 9.1.4 for a full list of global conferences.



vi. Range and quality of partnerships with the government, civil

society and the private sector;

vii. Extent of collaboration and coordination with other United Nations system organizations, including the Bretton Woods institutions, and with other development partners such as the regional development banks and international non-governmental organizations.

(c) UNDP support to the United Nations:

i. Analysis of the status and prospects of collaboration with other organizations of the United Nations system (including the Bretton Woods institutions) through the CCA and UNDAF;

ii. Review of the effectiveness of UNDP representation of country

office support services for organizations of the United Nations system not represented in the country;

iii. Assessment of the scope, quality and results of advocacy by

UNDP on issues concerning the United Nations system;

iv. Assessment of the country office role in coordination of development cooperation.

(d) Management:

i. Progress towards and effectiveness in the use of the programme approach and national execution;

ii. Mobilization and use of resources benefiting both UNDP-

supported and other national programmes;

iii. Capacity and management of the country office to achieve expected results;

iv. The type, quality and effectiveness of support provided by

headquarters units to the country office.

In the context of advocacy, reference should be made to the use of SPPD, STS and DSS resources. Include support from consultative groups and round-tables under aid coordination.

(e) Timing and Duration: i. The country office must undertake country reviews of UNDP

operations either at mid-term or towards the end of the CCF period;

ii. The country review covers all activities supported by UNDP in

a programme country, including net contributor countries. It



should take place in time to provide inputs for the preparation of the next CCF and will typically cover a three-year period. The duration of the complete review process should not normally exceed four to six months.

3. The Review Process. The review process includes the following elements:

(a) Review schedules. The regional bureaux maintain a schedule of

country reviews for all programme countries, in consultation with the country offices, the Operations Support Group (OSG), the Evaluation Office (EO) and other central units. They ensure that country offices adhere to this schedule. OSG maintains a consolidated global list of planned country reviews and monitors progress;

(b) Preparing the terms of reference. The country office prepares a

draft terms of reference (TOR) in consultation with the regional bureau and government coordinating authority. As part of this process, the regional bureau solicits the views of central units and ensures that they are shared with the country office. The Bureau also liaises with OSG to determine the level of funding from headquarters for the country review. Headquarters consultation on the TOR must be completed within three weeks of receiving the draft TOR from the country office. The draft TOR is finalized by the resident representative and communicated to the regional director prior to implementation;

(c) Leadership, composition and responsibilities of the review

team. The procedures to be followed are: i. The review team should comprise three or more independent

persons, depending on the scope and complexity of the exercise;

ii. The government coordinating authority nominates one member of the team while the others are chosen by UNDP. Of the members chosen by UNDP, the regional bureau selects one person to serve as team leader, in agreement with OSG; the remaining members are chosen by the country office;

iii. The members chosen by UNDP should include at least one staffmember from outside the subregion, from a country office, subregional resource facility (SURF) or the Evaluation Network. Staffmembers from organizations of the United Nations system within the country as well as consultants (locally or internationally recruited) may also be selected for the team. In all cases, the utmost effort must be made during the selection process to ensure gender balance in the composition of the review team;

iv. The review team will be responsible for generating findings and

recommendations on the issues identified in the TOR for the

The views of the following central services are required: BOM, BOM, OAPR, BDP, Evaluation Office, OSG. Other headquarters units such as United Nations Volunteers, UNIFEM and UNCDF should be contacted where warranted by the substance of the CCF. See annex 7J for the format of the TOR. “Independent persons” are defined as those who have not been directly involved in the formulation and management of the CCF and associated programmes and projects. Ideally, this would be a deputy resident representative or other senior officer. See annex 7I for the format of the country review report.



recommendations on the issues identified in the TOR for the country review. The draft country review report will be prepared by the team leader, assisted by other team members. Issues relating to internal management will be addressed by one or more team members nominated by UNDP;

v. The review team will consult with all relevant stakeholders

during the preparation of the report;

(d) Country review meeting. The procedures to be followed are: i. The government and country office convene a meeting to

discuss the findings and recommendations of the review, except those dealing with internal management issues and support to the country office. The meeting is co-chaired by a senior member of the government and the resident representative. The government and the country office jointly decide on the selection of other participants. The regional bureau normally participates in the country review meeting; other headquarters units may attend after consultation with the bureau. All or at least some of the members of the review team, especially the team leader, should be present at the meeting. The country office will prepare a record of the proceedings of the country review meeting. The record is then endorsed by the government;

ii. UNDP policy requires country offices to consult with a broad

range of stakeholders on the draft country review report. If this cannot be accomplished at the country review meeting, then alternative arrangements have to be made by the country office to ensure that such consultations take place;

(e) Finalization and distribution of the country review report. The

procedures to be followed are:

i. The final country review report is prepared by the review team taking into account the outcome of discussions at the country review meeting and noting any unresolved issues, if applicable;

ii. Once completed, the report is forwarded by the resident

representative to the regional director. The report (excluding Parts V (f) (g) and VI, on management and support to the country office, respectively) is also submitted to the government coordinating authority; in addition, this version can be shared with other stakeholders;

The senior government official responsible is normally from the coordinating authority. “Stakeholders” are broadly defined as the direct beneficiaries of UNDP-supported programmes and projects, United Nations agencies, bilateral and other multilateral agencies and representatives from civil society as well as the private sector. See 4.1 para.9 for more information on participation during programme design.



(f) Review at headquarters. The procedures to be followed are:

i. The regional bureau submits to the PWG: (a) the summary of

the final country review report; and (b) the bureau’s suggestions for follow-up action in the matrix of recommendations;

ii. PWG: (a) reviews the country office performance; (b) examines

any lessons learned and implications for UNDP operations in the country, subregion, region or globally; (c) adopts or modifies recommendations concerning changes in the CCF and in TRAC 1.1.2 assignment; and (d) endorses or revises suggestions relating to country office management, including measures to support the office to meet revised performance objectives.

iii. Following the Administrator’s review, the regional bureau

arranges for a summary of the country review report together with any observations by the Administrator to be submitted to the Executive Board (10 per year).

For further guidance, see the PWG website http://intra.undp.org/osg/draft/pwg This applies only to those countries whose reviews are to be discussed by the Executive Board.

4. Adaptations of the Review Process. The procedures to be followed are:

(a) The country review process can be adapted by regional bureaux, in

consultation with country offices, to minimize managerial requirements and financial costs. This alternative will apply only to programme countries with a resource mobilization target in the CCF of $10 million or less per annum;

(b) Clustered country reviews (grouping two or more countries) may be

carried out in those cases where there are substantial similarities in the developmental conditions of and UNDP support to the relevant countries;

(c) In the particular case of countries in special development situations, any necessary modifications can be made to the country review process by the regional director, in consultation with the concerned country offices and the Associate Administrator;

(d) Modifications to the country review process will also be considered

to accommodate joint reviews of country programmes prepared within the parameters of the UNDAF where such an approach is requested by the United Nations country team through the resident coordinator. These modifications will be made in consultation between the country office, regional bureau and OSG.

This may apply for example, to a group of small island states. See annex 7K for further guidance. The Associate Administrator is supported in this review by ERD and OSG.



5. Outputs of the country review. The principal outputs of the

country review are:

(a) A country review report with a maximum length of 15 pages, excluding annexes (the summary of conclusions and recommendations should not normally exceed three pages);

(b) A record of the proceedings at the country review meeting and,

where necessary, additional meetings with stakeholders, with a maximum length of five pages.

See annex 7I for the format of the country review report.

6. Financing. Country reviews are financed from two major sources: primarily, from programme resources at the country level; and, secondarily, from line 1.4, managed at headquarters. The TOR serves as the basis for obtaining the requisite resources. It will, therefore, indicate the budgeted costs for the country review, those elements to be financed from country programme resources, and residual amounts requiring support from line 1.4.

Regional bureaux liaise with OSG to determine the level of resources available from line 1.4.

7. Follow-up. Within UNDP, the regional bureaux and country offices are responsible for ensuring action on recommendations arising from the country review. To this end: (a) Key results expected from follow-up actions will be reflected in

compacts between regional bureaux directors and resident representatives, on the one hand, and the heads of central units and the Administrator, on the other hand;

(b) Country offices will use the agreed recommendations of the

country review as a checklist for assessing country level progress within the context of annual reviews and associated country office annual reports;

(c) The checklist of recommendations will also be used during

missions by bureau staff to country offices;

(d) The findings and recommendations of the country review should serve as key points of reference during programme or project evaluations and audits of country offices;

(e) Finally, the findings and recommendations of the country review

will contribute to a review by the United Nations country team, led by the resident coordinator, of system-wide progress towards the objectives of the UNDAF. (This will occur in those cases when the country review is not replaced by a joint United Nations system review of the UNDAF and associated country programmes and projects.).

See the UNDAF Guidelines for further details.



ANNEX 7A

MONITORING AND EVALUATION POLICIES OF UNDP

(Approved by the Executive Committee on 6 June 1997)

1. General policy statements. Monitoring and evaluation are essential management functions that are interactive and mutually supportive. Monitoring and evaluation must be continuously strengthened to enable UNDP to respond to demands for: (a) greater accountability in the use of resources; (b) a clearer basis for decision-making; and (c) more practical lessons from experience to guide future development interventions. Monitoring and evaluation must be results-oriented and provide assessments of the relevance, performance and success of UNDP development interventions. 2. Monitoring coverage. Monitoring and systematic reporting must be undertaken for all programmes and projects regardless of duration and budget. 3. Evaluation coverage. Evaluation of programmes and projects will be undertaken selectively based on the following set of criteria:

For mandatory evaluation

• Scale of resources - large-scale programmes and projects, i.e., those with budgets of $1 million or more

• Duration of technical cooperation – technical cooperation (channeled through various

programmes and projects) that has been provided to a particular institution for ten years or more

For non-mandatory evaluation

• Nature of development intervention - innovative programmes and projects

4. Compliance with mandatory evaluations. Compliance with mandatory evaluations will be enforced and used as an indicator for assessing management performance. However, flexibility may be exercised as a management prerogative following guidance provided in Results-oriented Monitoring and Evaluation: A Handbook for Programme Managers (see para. 8). The Evaluation Office will monitor and report on the compliance rate for mandatory evaluations to the Administrator who then reports it, as part of the annual report, to the Executive Board. 5. Tracking system for evaluation. Management information systems must be able to track: (a) programmes and projects to be covered by evaluations, and (b) the implementation status of recommendations emanating from evaluations. 6. Institutional memory on lessons learned. In support of organizational learning, UNDP will continue to maintain and ensure access of staff to its central evaluation database (CEDAB) as the institutional memory on lessons learned from programmes and projects that have been evaluated. Evaluators must submit, along with their evaluation reports, a project evaluation information sheet (PEIS) containing information to be entered into the database. In the event that no one from the evaluation team prepares the PEIS, the country offices or headquarters units that managed the evaluation must hire a person to do the task and the costs for this must be charged against their own budgets.



7. Funds in association with UNDP. In line with the objective of harmonizing monitoring and evaluation policies within the United Nations system, funds in association with UNDP must follow UNDP policies and guiding principles on monitoring and evaluation. They should work in collaboration with the Evaluation Office in determining the extent of the flexibility that they would exercise to adapt the policies and guiding principles to their specific contexts and requirements. 8. Implementation of monitoring and evaluation policies. Guidance on the implementation of these monitoring and evaluation policies will be provided in Results-oriented Monitoring and Evaluation: A Handbook for Programme Managers. Operational procedures will be provided in the new UNDP Programming Manual.



ANNEX 7B

FIELD VISIT REPORT FORM

General Instructions Use this form to prepare your field visit report. Be concise in presenting your assessment of the programme or project. In writing your findings, conclusions and recommendations, reflect the views of stakeholders, especially the target groups, whom you have interviewed. Be sure to list in an annex the names of persons whom you met and the organizations they represent. Provide your office and the designated institution with copies of this report. I. Basic programme or project information Programme or Project number and title:

Designated institution: Implementing agency(ies): Project starting date:

Originally planned Actual

Project completion date: Originally planned New

II. Purpose of the field visit

The general purpose of a field visit is to obtain a first-hand account of the progress in achieving programme or project results. In addition to this, however, list any special objectives that you might have, e.g., to look into reported refusal of farmers to use new agricultural practices being introduced by the programme.

III. Findings State facts on the status of the programme or project in terms of producing expected results,

using established indicators and benchmarks. Present significant issues that need to be addressed, and, similarly, any observed opportunities for improving the programme or project.



IV. Conclusions Based on your findings, state whether or not the programme or project is making progress as

planned. If you had any special objective in making the field visit, also include your conclusions relating to it.

V. Recommendations State your recommendations clearly. Describe the actions proposed. Identify who are

responsible for implementing them. Provide an indication of the timeframe and any significant resources required.

Name Signature Title Date of visit Organization represented

VI. Field visit report annex

List of persons met and the organizations they represent



ANNEX 7C

ANNUAL PROGRAMME/PROJECT REPORT (APR)

Page 1

Basic programme/project information (To be provided by programme or project management)

Programme or project number and title: Designated institution: Project starting date:

Originally planned: Actual:

Project completion date:

Originally planned: New:

Total budget ($):

Original: Latest signed revision:

Period covered by the report:



PART I: NUMERICAL RATING Rate the relevance and performance of the programme or project using the following scale:

1 - Highly satisfactory 4 - Unsatisfactory 2 - Satisfactory X - Not applicable 3 - Unsatisfactory, with some positive elements

Place your answers in the column that corresponds to your role in the programme or project.

SUBSTANTIVE FOCUS

Target group(s)

Programme or project manager

Government UNDP

A. RELEVANCE

1. How relevant is the programme or project to the development priorities of the country?

2. How relevant is the programme or project to the promotion of sustainable human development? Indicate your rating on the focus area which the programme or project was designed to address.

(a) Poverty eradication and sustainable livelihoods

(b) Protection and regeneration of the environment

(c) Gender in development

(d) Promoting an enabling environment for SHD, including governance

3. To what extent are appropriate beneficiary groups being targeted by the programme or project, based on the following considerations?

(a) Gender

(b) Socio-economic factors

(c) Geographic location

4. Given the objectives of the programme or project, are

the appropriate institutions being assisted?



B. PERFORMANCE

1. Using the following indicators rate the contribution of

the outputs to the achievement of the immediate objectives:a/

(Indicator 1)

(Indicator 2)

(Indicator 3)

2. Rate the production of target outputs.

3. Are the management arrangements of the programme

or project appropriate?

4. Are programme or project resources (financial,

physical and manpower) adequate in terms of:

(a) quantity?

(b) quality?

5. Are programme or project resources being used

efficiently to produce planned results?

6. Is the programme or project cost-effective compared

to similar interventions?

a/ The programme or project manager must list the indicators as reflected in the programme support document or project document or as agreed on by the stakeholders.



7. Based on its work plan, how would you rate the

timeliness of the programme or project in terms of:

(a) Production of outputs and initial results?

(b) Inputs delivery?

Target group(s) Programme or project manager

Government UNDP

OVERALL RATING OF THE PROGRAMME OR PROJECT

Explain the basis of your rating, which need not be limited to, or which may be different from, the relevance and performance criteria rated above. For the last year of the programme or project, the overall rating should include an assessment of the potential success of the programme or project as well as its relevance and performance.

PART II: TEXTUAL ASSESSMENT

1. What are the major achievements of the programme or project vis-à-vis the expected results during the year under review? To the extent possible, include an assessment of the potential impact, sustainability and contribution to capacity development.

2. What major issues and problems are affecting the achievement of programme or project results? 3. How should these issues or problems be resolved? Please explain in detail the action(s)

recommended. Specify who should be responsible for such actions. Also indicate a tentative time-frame and the resources required.

4. What new developments (if any) are likely to affect the achievement of programme or project results?

What do you recommend to respond to these developments?



5. What are the views of the target groups with regard to the programme or project? Please note any

significant gender-based differences in those views. 6. To date, what lessons (both positive and negative) can be drawn from the experience of the

programme or project? 7. If the programme or project has been evaluated, what is the implementation status of the

recommendations made by the evaluators?

8. Do you propose any substantive revision to the programme or project document? If yes, what are they? State justification.

9. Provide any other information that may further support or clarify your assessment of the programme

or project. You may include annexes as you deem necessary. For target groups: Name: Title: Signature: Date: For the programme or project management: Name: Title: Signature: Date: For the government: Name: Title: Signature: Date: For UNDP: Name: Title: Signature: Date:



PART III: Programme or project summary table Programme/project title and number:

Management arrangement:

Designated institution:

Period covered:

OVERALL ASSESSMENT

Brief analysis of progress achieved in the contribution of the programme or project to the expected results.

FINANCIAL SUMMARY

Source of funds

Annual budget

($ ‘000)

Estimated annual expenditure

($ ‘000)

Delivery rate

(%) TRAC (1 and 2) TRAC 3 Other Cost-sharing:

Government Financial institution Thirdparty

Trust funds AOS (where applicable)



SUMMARY OF RESULTS

Programme support objectives

(PSOS) or immediate objectives

Indicators

Achievements

Obj. 1

Obj. 2

Obj. 3

….

Annual output targets

Achievement of outputs

Proposed output targets for the next year

Obj. 1 Output 01 Output 02 Output 03 …




ANNEX 7D

TERMINAL REPORT FORM

Basic programme/project information (To be provided by programme or project management) Programme/Project number and title: Designated institution: Project starting date:




Total budget ($):


Period covered by the report:



PART I: NUMERICAL RATING Rate the relevance and performance of the programme or project using the following scale:

1 - Highly satisfactory 4 - Unsatisfactory 2 - Satisfactory X - Not applicable 3 - Unsatisfactory, with some positive elements

Place your answers in the column that corresponds to your role in the programme or project.

SUBSTANTIVE FOCUS

Target group(s)

Programme or project manager

Government UNDP

A. RELEVANCE

1. How relevant is the programme or project to the development priorities of the country?

2. How relevant is the programme or project to the promotion of sustainable human development? Indicate your rating on the thematic focus which the programme or project was designed to address. (a) Poverty eradication and sustainable livelihoods

(b) Protection and regeneration of the environment

(c) Gender in development

(d) Promoting an enabling environment for SHD, including governance

3. To what extent are appropriate beneficiary groups being targeted by the programme or project, based on the following considerations?

(a) Gender

(b) Socio-economic factors

(c) Geographic location

4. Given the objectives of the programme or project, are

the appropriate institutions being assisted?



B. PERFORMANCE

1. Using the following indicators, rate the contribution of

the outputs to the achievement of the immediate objectives: a/

(Indicator 1)

(Indicator 2)

(Indicator 3)

2. Rate the production of target outputs.

3. Are the management arrangements of the programme

or project appropriate?

4. Are programme or project resources (financial,

physical and manpower) adequate in terms of:

(a) quantity?

(b) quality?

5. Are programme or project resources being used

efficiently to produce planned results?

6. Is the programme or project cost-effective compared

to similar interventions?

a/ The programme or project manager must list the indicators as reflected in the programme support document or project document or agreed on by the stakeholders.



7. Based on its work plan, how would you rate the

timeliness of the programme or project in terms of:

(a) Production of outputs and initial results?

(b) Inputs delivery?

Please indicate your overall rating of the programme or project using the following numbers: 1 - Highly satisfactory 2 - Satisfactory 3 - Unsatisfactory, with some positive elements 4 - Unsatisfactory 5 - Not applicable

Target

group(s) Programme or project manager

Government UNDP

OVERALL RATING OF THE PROGRAMME OR PROJECT

Explain the basis of your rating, which need not be limited to, or which may be different from, the relevance and performance criteria rated above. For the last year of the programme or project, the overall rating should include an assessment of the potential success of the programme or project as well as its relevance and performance. PART II: TEXTUAL ASSESSMENT 1. What are the major achievements of the programme or project vis-à-vis the expected results? Please

explain them in detail in terms of potential impact, sustainability of results and contribution to capacity development.

2. What factors affected the achievement of programme or project results?



3. What lessons (both positive and negative) can be drawn from the experience of the programme or project?

4. What are the views of the target groups with regard to the programme or project? Please note any

significant gender-based differences in their views. 5. If the programme or project has been evaluated, what is the implementation status of the

recommendations made by the evaluators? 6. What activities or steps do you recommend as follow-up to the project? 7. Provide any other information that may further support or clarify your assessment of the programme

or project. You may include annexes as you deem necessary. For target groups: Name: Title: Signature: Date: For the programme or project management: Name: Title: Signature: Date: For the government: Name: Title: Signature: Date: For UNDP: Name: Title: Signature: Date:



PART III: Programme/project summary table Programme or project title and number:

Management arrangement:

Designated institution:

Period covered:

OVERALL ASSESSMENT

Brief analysis of progress achieved in the contribution of the programme or project to the expected results.

FINANCIAL SUMMARY

Source of funds

Budget ($ ‘000)

Estimated expenditure

($ ‘000)

Delivery rate

(%)

TRAC (1+2) TRAC 3 Other Cost-sharing:

Government Financial institution Thirdparty

Trust funds AOS (where applicable)



SUMMARY OF RESULTS

Programme support objectives (PSOs) or Immediate Objectives

Indicators

Achievements

Obj. 1

Obj. 2

Obj. 3

….

Output targets

Achievement of outputs


Obj. 2…. Output 01 Output 02 Output 03 …



ANNEX 7E

TRIPARTITE REVIEW REPORT FORM

I. Basic programme/project information Programme or project number and title: Designated institution: Implementing agency (if different from the designated institution):

Project starting date:




Total budget ($):


Delivery rate (%): Date of the tripartite review II. Follow-up to the previous tripartite review and evaluation

Briefly discuss the status of any follow-up action to the previous TPR or evaluation, if one was conducted.

III. Conclusions of the review

Based on the assessment of the annual programme/project report (APR), briefly discuss the conclusions of the TPR on the following: 1. Programme or project relevance, potential and actual results; 2. Issues and problems in programme or project design and implementation. 3. Significant actions to be taken regarding the short-term programme or project strategic plan.



IV. Decisions taken List decisions taken with a brief discussion of the basis for each. Indicate the parties responsible and the time-frame for implementing each decision. (N.B. For the terminal TPR only: briefly discuss any recommended follow-up activity.)

V. Need for an evaluation

If it is decided in the tripartite review to have the programme or project evaluated, indicate why and when the evaluation will be conducted and the issues that the evaluation will address.

___________________________________ Resident representative ___________________________________ Signature ___________________________________ Date report prepared

VI. Tripartite review report annex

Names of TPR participants and organizations represented



ANNEX 7F

COUNTRY-LEVEL EVALUATION PLAN FORM

EVALUATION PLAN

UNDP Country Office __________________________________ time-frame___________________ (name of country) Highlights of the country cooperation framework (CCF): Indicators for monitoring and evaluation and the collection of data: Funding sources for the evaluations:



EVALUATION PLAN UNDP country office,_______________________________ ______________________

(name of country), (year )

Programme/project number and title

Budget ($000)

Year approved

Schedule

Type of evaluation (By agent, timing and scope)

1st Qtr.

2nd Qtr.

3rd Qtr.

4th Qtr.

Mandatory evaluations

Non-mandatory evaluations



ANNEX 7G STRUCTURE AND CONTENT OF THE COUNTRY OFFICE ANNUAL REPORT

Executive Summary

Part I: National context

Major changes in development conditions, national policies and programmes, as well as cooperation with other organizations of the United Nations system and the international community. Implications for the continued relevance and expected results of the CCF and associated programmes and projects.

Part II: Programme performance For the programme categories of the SRF (enabling environment for SHD, poverty eradication and sustainable livelihoods, environment and gender), as well as for countries in the special development situations category, provide:

(a) an analysis of major constraints and/or opportunities affecting the achievement of expected results;

(b) an assessment of the contribution of UNDP support to the achievement of the objectives of the

UNDAF and any issues arising; and

(c) a review of key factors influencing the range, scope and effectiveness of partnerships with other organizations of the United Nations system (including the Bretton Woods institutions), regional development banks, bilateral donors, international NGOs, civil society and the private sector.

Part III: UNDP support to the United Nations

Update on the overall status and prospects of collaboration with organizations of the United Nations system (including the Bretton Woods institutions) through the CCA and UNDAF, taking into account UNDP organizational policies in this area. Emphasis can be placed on issues such as progress with the harmonization of programming cycles, thematic groups, common advocacy efforts, joint and/or parallel programmes, fund-raising, utilization of line 3.1, SPPD and STS. Review of developments with regard to the United Nations House, administrative harmonization and common services. Issues arising from UNDP representation of, or country office support services for, organizations of the United Nations system not represented in the country. Update on the scope, quality and results of advocacy by UNDP on issues concerning the role of the United Nations system in development cooperation. Developments during the preceding year concerning the role of the country office in the coordination of development cooperation, including the Consultative Group or round-table mechanism.



Part IV: Management Assessment and analysis on four key issues, as follows: (a) Progress towards and effectiveness in the use of the programme approach and national execution; (b) Mobilization and utilization of resources; (c) Application of organizational policies and procedures on monitoring and evaluation; and (d) Capacity and management of the country office to achieve expected results.a/

Part V: Support to the country office

Assessment of the range, quality and effectiveness of support received from headquarters units and SURFs to facilitate improved programmeb/ and managementc/ performance. Initial identification of support required over the next 12 months.

a/ Brief description of country- and country office-specific issues relevant to an assessment of management performance. Changes in

country office capacity: number, skills and gender of staff (all categories); the size, allocation and availability of funds from the administrative budget; and standards, availability and connectivity of computer systems. Brief summary of any issues concerning work planning and review as well as process management (financial disbursement, procurement, recruitment, training and performance appraisal). Update on audit follow -up. Activities concerning staff development. Management of staff relations.

b/ This may include advice/guidance/feedback, back-stopping and technical support for: research and analysis, programme planning and management, access to international knowledge networks and experts, advocacy, resource mobilization, allocation and utilization, coordination and collaboration with other UN system organizations, and monitoring and evaluation (including timely reactions to the country office annual report).

c/ This may include advice/guidance/feedback, backstopping and technical support on: financial and human resources management as well as procurement and inventory control; information technology management, including information management systems; follow -up to audits and performance reviews; common services and harmonization of administrative and financial procedures within the United Nations system; and reactions to management concerns raised in the country office annual report.



Part VI: Financial summary

Country:

CCF period: Reporting year:

REGULAR RESOURCES

Amount assigned

for the CCF ($ ‘000)

Amount planned

for the year ($ ‘000)

Estimated

expenditure for the year

($ ‘000) Estimated IPF carry-over

TRAC 1.1.1 and TRAC 1.1.2 (% of TRAC 1.1.1)

TRAC 1.1.3 Other resources SPPD/STS

Subtotal

OTHER RESOURCES

Amount targeted

for the CCF ($ ‘000)

Amount

mobilized for the year

($ ‘000)

Estimated

expenditure for the year

($ ‘000) Government cost-sharing

Third-party cost-sharing Sustainable development funds

GEF Capacity 21 Montreal Protocol


UNIFEM UNCDF UNSO

Subtotal

GRAND TOTAL



Part VII: UPDATED SRF FOR THE COUNTRY OFFICE ANNUAL REPORT Sub-goal X:

Situational indicators:

Update on situational indicators:

Strategic areas of support Intended outcomes

Performance indicators (update)

Intended outputs

Achievement Partnerships Update on partnerships



ANNEX 7H

STRUCTURE AND CONTENT OF THE REGIONAL RESULTS ORIENTED ANNUAL REPORT (ROAR) [forthcoming]



ANNEX 7I STRUCTURE AND CONTENT OF THE COUNTRY REVIEW REPORT

Summary of conclusions and recommendations

Part I: The national context

Analysis of any major changes in the country situation since the CCF was formulated and their implications for the continued relevance and impact of UNDP support. The range, quality and effectiveness of relations between UNDP and the programme country government. Brief overview of the role and activities of the United Nations system within the broader framework of development cooperation in the country.

Part II: The country cooperation framework

Any substantial changes in the CCF and associated programmes and projects and their justification. Extent of focus in the CCF on the most critical development problems in the country, consistent with national and UNDP global, priorities and factoring in the activities of other development partners, especially, though not exclusively, partner organizations within the United Nations system. Consideration given to assisting national level follow-up to global conferences through UNDP-supported programmes and projects. Any linkages established with regional and global programmes.

Part III: Programme performance For the four programme categories of the SRF (enabling environment for SHD, poverty eradication and sustainable livelihoods, environment and gender) as well as in the special development situations category, assess the:

(a) Achievement and sustainability of results as anticipated in the CCF, specified in PSDs and project documents and reflected in the SRF. Reference may be made to significant constraints and opportunities influencing performance;

(b) Status and prospects of partnerships with organizations of the United Nations system (including the

Bretton Woods institutions). Scope, purpose and outcomes of links with the regional development banks, bilateral donors and international NGOs. The scope and characteristics of, and any opportunities and/or constraints affecting partnerships with, civil societya/ and the private sector;

(c) Scope and effectiveness of advocacy. Subjects could include issues selected for advocacy

(consistent with key organizational directives such as the Direct Lines from the Administrator), choice of target groups, the range of advocacy tools deployed to reach these target groups, resources allocated and used for advocacy, measures, if any, adopted to assess outcomes and indications about the effectiveness of efforts.

a/ This could include, for example, the media, domestic NGOs, human rights groups, parliamentarians, political parties, academic institutions,

think-tanks, research institutions, professional associations, trade unions, employers’ federations and farmers’ organizations.



Part IV: UNDP support to the United Nations

(a) Analysis of the overall status and prospects of collaboration with organizations of the United Nations system (including the Bretton Woods institutions) through the CCA and UNDAF, taking into account UNDP organizational policies in this area. Emphasis can be placed on issues such as progress with the harmonization of programme cycles, thematic groups, common advocacy efforts, joint and/or parallel programmes, fund-raising, utilization of line 3.1, SPPD and STS. Review of developments with regard to the United Nations House, administrative harmonization and common services;

(b) Review of the effectiveness of UNDP representation of, or country office support services for, the

organizations of the United Nations system not represented in the country; (c) Assessment of the scope, quality and results of advocacy by UNDP on issues concerning the United

Nations system’s role in development cooperation; (d) Assessment of the country office’s role in coordination of development cooperation, including the

consultative group and / or round table mechanisms.

Part V: Management

(a) Application of and experience with the programme approach. Particular issues of interest include the existence, scope and quality of national programmes (NPs), actions taken by UNDP to advocate for and support the development of NPs where they do not exist already, participation of donors in NP design, UNDP strategic role within NPs, resource mobilization at the level of the NP and PSD and the status of multisectoral coordination and progress towards decentralized management;

(b) Application of and experience with execution modalities (NEX, Agency, NGO and DEX ). In the

case of NEX, particular attention should be directed towards issues such as country office support, exit strategies and capacity-building measures to strengthen management within the programme country government;

(c) Information on the magnitude of resources mobilized by UNDP for the CCF from regular and

other sources. Additional resources mobilized for other national programmes. Analysis of the potential for resource mobilization, from domestic and external sources. Description of any innovative approaches to resource mobilization employed by the country office and/or government. Assessment of resource allocation among the four programme categories of the SRF (and the special development situations category), as well as across programmes and projects; progress in delivery; and productivity of resource utilization. Implications for resource allocation and utilization in the remaining years of the current CCF as well as the next CCF;

(d) Adequacy of monitoring and evaluation within UNDP-supported programmes and projects. Key

issues include formulation and implementation of monitoring and evaluation plans, to enable on-going assessment of progress towards expected results; evaluation compliance; and status of follow-up on evaluation recommendations. Particular attention should be paid to application of and experience with the SRF and periodic reviews and reports;

(e) Significant innovations or best practices in programme or project design, management, monitoring

and evaluation, including application of participatory approaches in each of these areas;



(f) Assessment of how the organizational structure and human, financial and physical resources of the

country office are aligned with UNDP activities in the country and required competencies:

i. Does the country office have sufficient resources – both qualitatively and quantitatively - to carry out its principal tasks in the country? This question relates, in particular, to the number, skills and gender of staff (all categories), the size, allocation and availability of funds from the administrative budget, and the standards, availability and connectivity of computer systems;

ii. Does the structure of the country office represent a rational allocation of human resources – in

skills, gender, numbers and organizational deployment – in view of principal UNDP activities in the country?

(g) Assessment of how the management of country office resources supports the implementation of

UNDP activities in the country:

i. Are staff knowledgeable about UNDP programming policies and procedures? ii. Are systems in place to ensure that UNDP programming policies and procedures are followed? iii. Is there a functioning and effective system of work planning in the country office? iv. Are procedures in place for oversight and quality control of essential tasks such as financial

disbursement, procurement, recruitment, training and performance appraisal? v. Is adequate attention being paid to staff development/learning on both substantive and

operational issues? vi. Is there a functioning staff association? Are there any effective consultative mechanisms

between the staff association and management? vii. Is staff morale a factor in the country office? viii. Are information systems operating in support of increased learning and productivity?

Part VI: Support to the country office

Type, quality and effectiveness of assistance requested and received from headquarters units and SURFs to facilitate improved programme performance. This may include advice/guidance/feedback, back-stopping and technical support for: research and analysis; programme planning and management; access to international knowledge networks and experts; advocacy; resource mobilization, allocation and utilization; coordination and collaboration with other organizations of the United Nations system; and monitoring and evaluation, including timely reactions to country office annual reports. Type, quality and effectiveness of assistance requested and received from headquarters units to facilitate improved management performance. This may include advice/guidance/feedback, back-stopping and technical support on the: application and effectiveness of the compact, with emphasis on the range of issues covered, the specificity of agreed targets or deliverables, monitoring of performance, feedback and adjustment; financial and human resources management as well as procurement and inventory control; information technology management, including information management systems; follow-up to audits and performance reviews; common services and harmonization of administrative and financial procedures within the United Nations system; and reactions to management concerns raised in the country office annual report.



Part VII: Conclusions and recommendations

Conclusions and recommendations in each of the areas covered in Parts I-VI with clear indication of responsibilities for follow-up by UNDP (both headquarters and country office), the programme country government and other partners.



Part VIII: Financial Summary Country: CCF period (including any extensions): Period covered by the country review (rounded up to full calendar year): REGULAR RESOURCES

Amount assigned for the full period

of CCF ($ ‘000)

Amount actually

made available for the period under

review ($ ‘000)

Estimated

expenditure for the period under

review ($ ‘000)

1 2 3 Estimated carry-over

TRAC 1.1.1 and TRAC 1.1.2 (indicate % of TRAC 1.1.1)

TRAC 1.1.3 SPPD/STS Subtotal OTHER RESOURCES

Amount targeted for the full period

of CCF ($ ‘000)

Amount actually

mobilized for the period under

review ($ ‘000)

Estimated

expenditure for the period under

review ($ ‘000)

Government cost-sharing

Third-party cost-sharing Funds, trust funds and other UNIFEM UNV UNCDF UNSO

GEF

Capacity 21 Montreal Protocol

Subtotal GRAND TOTAL



ANNEX 7J CONTENTS OF THE TERMS OF REFERENCE FOR COUNTRY REVIEWS

I. BACKGROUND

Brief description of the country context and history relating to the formulation as well as implementation of the CCF and other UNDP activities. Reference to any significant concerns noted by PWG and the Executive Board when the CCF was reviewed.

II. OBJECTIVES OF THE COUNTRY REVIEW

Statement on the country-specific objectives of the review, consistent with corporate policy on country reviews, comprising both programme and management concerns. These objectives must incorporate any issues raised by the regional bureau. For this purpose, the bureau must consult with central services (such as the Bureau for Development Policy, the Bureau for Financial Administrative Services, the Bureau of Planning and Resource Management, the Evaluation Office, the Office of Audit and Performance Review and the Operations Support Group) to ensure that it has identified a comprehensive list of concerns relevant to the country office .

III. ASSESSMENT METHODOLOGY

Description of the proposed approach towards the collection, analysis and interpretation of data necessary to meet the objectives of the country review. The aim should be to undertake a thorough assessment - using a combination of secondary dataa/, interviews as well as focus group discussions with stakeholders, and field observation - to validate and expand upon information available from programme and management indicators. In this connection, the record of the annual review process and the contents of country office annual reports may be particularly helpful since both have been designed to lay the groundwork for the country review. The specific issues identified for review may be organized thematically, along the lines of the categories in the SRF, or other forms of categorizationb/ which are appropriate and lend themselves to ease of analysis, understanding and follow-up.

IV. PROCESS AND MANAGEMENT

Outline of the various stages in the review process, with associated deadlines, from the preparation of the TOR to the finalization of the report. Identification of organizations/individuals/teams who will participate in all or part of the review process and their responsibilities for specific functions and/or tasks.

a/ Programme or project reports, country office annual reports, annual reports of the resident coordinator, audits, evaluations,

National Human Development Reports (NHDRs), Common Country Assessments (CCAs) and UNDAFs, among other possibilities.

b/ Possible categories could be identified from the expected contents of the country review report, for example, advocacy for

SHD, utilization of the programme approach in UNDP-supported interventions, application of national execution, resource mobilization for UNDP-supported and other national programmes, inter-agency collaboration, and linkages with civil society and the private sector.



V. EXPECTED OUTPUTS

The key products of the exercise, based on the list described in these procedures. VI. COSTS AND FINANCING

A budget for the country review according to major activities, denominated in United States dollars, indicating sources of financing and specifying funding required from line 1.4.



ANNEX 7K APPROACH TO CLUSTERED COUNTRY REVIEWS

A. Selection of countries and preparation of TOR

1. The regional bureau identifies the group of countries and secures the agreement of resident representatives and programme country governments. It consults with central services as well as country offices and either prepares a draft TOR or delegates the responsibility to a country office within the cluster. The draft TOR (based on annex 7J) is then sent to all country offices in the cluster.

2. Country offices consult with programme country governments and provide feedback on the draft

TOR to the regional bureau as well as the country office with delegated responsibility for preparing the TOR (when this is the case). A final version is prepared by the bureau or delegated country office and approved by the regional director.

B. Selection of the review team

1. A review team, selected in the manner described in the country review procedures (see 7.5.2), prepares the draft country review report. All countries in the cluster are visited by the team.

C. Subregional or cluster review meeting

1. A subregional or cluster review meeting discusses the draft country review report except those

issues dealing with internal management and support to the country office. It is organized and chaired by the regional bureau and attended by representatives from all country offices and programme country governments in the cluster. Additional participants may include a selected group of other country-level stakeholders. The presence of all or some members of the review team, especially the team leader, will be necessary.

2. The meeting will normally be held in a country within the cluster.

D. Finalization and distribution of the report

1. The final country review report (see annex 7I) as well as a record of proceedings are prepared by the regional bureau with the assistance of country offices.

2. Once completed, the final country review report is forwarded by the regional director to resident

representatives. Resident representatives submit the country review report (excluding Parts V (f) (g) and VI, on management and support to the country office, respectively) to programme country governments (government coordinating authority); they may also share the document with the United Nations country team and other stakeholders within the country.



E. Review at headquarters

1. The regional bureau submits the summary of the final country review report, together with its

suggestions for follow-up action, to a meeting of PMOC. The full text of the report as well as records of proceedings at the subregional or cluster review meeting will be available at the meeting of PMOC for reference. PMOC accepts or revises the bureau’s recommendations. If requested by the regional bureau, one or more resident representatives may attend this meeting.

2. The summary of the final country review report together with the recommendations of PMOC are

then submitted by the PMOC Secretariat (OSG/DOPP) to the Administrator for review and approval.

3. The Administrator submits the summary of the country review report (including a financial

summary for each country in the cluster) as well as PMOC’s recommendations to the Executive Board together with his/her observations. The concerned regional bureau prepares the Administrator’s observations. Any comments made by the Board are forwarded to the bureau for follow-up action.


Chapter 8: GLOBAL AND REGIONAL PROGRAMMING Page 1

Contents Page 8.0 GLOBAL AND REGIONAL PROGRAMMING

8.1 Introduction 8.1.1 Overview 8.1.2 Definitions 8.1.3 Policies 8.1.4 Aims of global and regional programming 8.2 The global cooperation framework 8.2.1 Introduction 8.2.2 Preparation process 8.2.3 Appraisal and approval 8.2.4 Contents of the GCF 8.3 Global projects 8.3.1 Introduction 8.3.2 Formulation 8.3.3 Appraisal and approval 8.3.4 Management arrangements 8.3.5 Monitoring, evaluation, reporting and revisions 8.4 The regional cooperation framework 8.4.1 Introduction 8.4.2 Preparation process 8.4.3 Appraisal and approval 8.4.4 Contents of the RCF 8.5 Regional programmes and projects 8.5.1 Introduction 8.5.2 Formulation 8.5.3 Appraisal and approval 8.5.4 Management arrangements 8.5.5 Monitoring, evaluation, reporting and revisions



8.0 GLOBAL AND REGIONAL PROGRAMMING

8.1 Introduction

8.1.1 Overview 1. UNDP activities at the global and regional level are undertaken in

response to needs and priorities expressed in global and regional conferences and other forums. UNDP support is provided as part of the wider response of the United Nations system.

2. Global and regional cooperation frameworks outline UNDP activities at the global and regional level, respectively. The frameworks specify the areas of concentration, the strategies and the expected results. The Executive Board approves these frameworks. Following approval, the objectives outlined in the frameworks are translated into discrete programmes and projects.

See 8.3 on how to develop global projects, 8.5 for regional programmes and projects. See 3.1, table 3.1 on the UNDP financial framework.

3. The activities under global and regional frameworks are funded by lines 1.3 and 1.2 respectively of the UNDP financial framework. Funding for global and regional activities can also come from other UNDP regular resources, such as SPPD, and from other resources, including co-financing arrangements.

The Division for Resource Planning and Coordination establishes the maximum annual budget levels for lines 1.2 and 1.3.

8.1.2 Definitions 1. Key terms used in global and regional programming are:

(a) Global programming refers to programming of UNDP cooperation to implement global mandates and to respond to global development opportunities and challenges;

The GEF supports global and regional

(b) Global issues or activities are those of worldwide or wide-ranging, international concern;

projects that address matters of international concern.

(c) Regional programming refers to programming of UNDP cooperation for groups of countries at the subregional or regional level. Regional programming involves activities that are common to several countries within one region;

(d) Region refers to an area serviced by one of the UNDP regional bureaux;

(e) Subregion refers to an area or a group or countries within a region, comprised of a geographical, political, economic, or ecological grouping;

(f) Principal Project Representative (PPR) is the individual who,

in collaboration with a UNDP regional bureau, is responsible for ensuring the effective utilization of UNDP resources in regional

A PPR may also be nominated for global



ensuring the effective utilization of UNDP resources in regional programmes and projects. The PPR works closely with governments, regional institutions, United Nations agencies, NGOs, subregional resource facilities (SURFs) and donors. The PPR is generally the UNDP resident representative in the host country;

nominated for global projects.

(g) Host country is the programme country in which the institution responsible for managing or coordinating the activities of a programme or project is located.

8.1.3 Policies 1. The following policies apply to all global and regional programming:

(a) Sustainable human development. Programming must address one or more of the UNDP focus areas in line with the UNDP mandate of sustainable human development;

See 1.4 for more information on each of the focus areas. See document DP/1998/4 and Executive Board decision 94/14 for

(b) Global and regional mandates: Programming must explore ways and means of translating global and regional mandates and priorities, in particular those emanating from United Nations conferences and international agreements, into global, regional and country-level follow-up;

legislation on the UNDP programming framework. See 9.1.4 for a list of global conferences.

(c) Matters of international concern. Programming must assess the impact of developments that have broad international implications and recommend actions that ensure that those developments are beneficial to developing countries in the context of sustainable human development;

Examples are environmental sustainability, international trade and investment, human rights, debt relief, and new approaches to international

(d) Policies, tools and methodologies. Programming must develop and test policies, tools and methodologies that will enable programme countries to respond effectively to national sustainable human development priorities. Programming must also be forward-looking and encourage studies on concrete, practical policy measures for translating sustainable human development from concept to action, and for adapting the current development cooperation paradigm to the emerging challenges of the twenty-first century;

development cooperation.

The GEF supports targeted research projects that may be global in scope and undertake goal-oriented research.

The GEF Small

(e) Cooperation frameworks. The global cooperation framework and the five regional cooperation frameworks must be submitted to the UNDP Executive Board for approval;

Grants Programme (SGP) is an example of a global programme that promotes participatory approaches with the

(f) Participation. There must be a broad range of stakeholders, including civil society organizations, participating in all programming stages.

objective of conserving the global environment. Refer to GEF Small Grants http://165.65.10.18/sgpsite/sgp.html



8.1.4 Aims of global and regional programming 1. The common aims of global and regional programming are to:

(a) Disseminate regionally and globally the lessons learned from country-level experience and to identify innovative ways to promote sustainable human development, and disseminate this knowledge regionally and globally;

The Global Hub/SURF network facilitates the dissemination of knowledge and the provision of technical guidance.

(b) Provide technical guidance directly and through partnerships with other international governmental and non-governmental institutions;

(c) Undertake advocacy so that issues relevant to the promotion of sustainable human development are incorporated into global, regional and country agendas;

For example, advocacy on human rights matters.

(d) Focus on high-leverage, strategic interventions that draw on the advantage of the UNDP global and regional presence and perspective.

(e) The Global Environment Faculty (GEF) supports activities that respond to global conventions, primarily the Convention on Biological Diversity, and the Framework Convention on Climate Change. In the area of international waters, GEF promotes initiatives to strengthen and support regional conventions and cooperation frameworks. The GEF may also support activities to address land degradation as they relate to the GEF focal areas, thus contributing to the objective of the Convention to Combat Desertification.

See the International Waters Project http://gefweb.org/meetings/GEF_C14/WPList.htm

2. The particular aims of global programming are to:

(a) Analyse emerging global problems and trends;

Examples of such trends are the global increase in carbon dioxide emissions, and global financial instability.

(b) Serve as a catalyst in promoting responses, at the country and regional level, to global problems and trends;

(c) Forge partnerships with other United Nations system organizations, the Bretton Woods institutions, and other international organizations in order to better analyse and respond to global problems and trends.

3. The particular aims of regional programming are to:

(a) Serve as a bridge between country and global initiatives; notably to promote the adaptation and application of global initiatives at the regional and country level;

An example is the promotion of concepts and methods for gender- mainstreaming.



(b) Facilitate cooperation among countries sharing similar geographic, social and economic conditions; such co-operation is designed in particular to consolidate or improve peace and security in a given subregion.

An example is a river basin development scheme (such as the Mekong).

8.2 The global cooperation framework

8.2.1 Introduction 1. Global programming is used by UNDP to translate global

development aspirations and mandates into innovative and practical development interventions for application by UNDP primarily through its regional and country cooperation frameworks. The global cooperation framework (GCF) is approved by the Executive Board, which authorizes the Administrator to proceed with the formulation and approval of global programmes and projects.

The design and implementation of the global cooperation framework must be consistent with the policies stated in 8.1.3.

2. The GCF is a strategy document that addresses global mandates and priorities while embracing the UNDP mandate of sustainable human development. The Administrator delegates to the Director of the Bureau for Development Policy (BDP) the overall responsibility for the management of resources, contents and outcomes of the GCF.

The duration of a CGF may vary. It is normally between three or five years.

8.2.2 Preparation process 1. The preparation of the GCF document begins about 18 months

before the current GCF expires. At the outset, BDP establishes a work plan that includes a process of analysis, conceptualization, consultation and formulation, as well as an outline of tasks, time frames, responsibilities and required support for the entire GCF process.

2. Analysis. BDP prepares an analysis of global mandates and priorities based on the following:

(a) Studies of global trends and requirements;

This analysis focuses on areas where UNDP has a comparative advantage.

(b) An examination of global commitments arising from the General Assembly, United Nations conferences and meetings, and major international agreements;

(c) Views of governments, intergovernmental organizations, UNDP bureaux, units and country offices, non-governmental and civil society organizations, and other partners and stakeholders;

(d) Assessments of the lessons learned, drawn from the ongoing global cooperation framework and obtained through reviews, assessments and evaluations; and

See 2.0 for information about the UNDAF, CCA and CCF.

(e) An examination of country and regional priorities drawn, among others, from UNDAFs, CCAs, RCFs and CCFs.

The elements of the GCF are set out in 8.2.4 and box 8.1 below.



3. Conceptualization. BDP prepares a short concept paper for the

GCF covering the main elements of the proposed framework.

4. Consultation. BDP uses the concept paper as the basis for consultations with a broad range of partners, including the United Nations Development Group, United Nations specialized agencies, UNDP bureaux and units, programme country governments, donor governments, intergovernmental organizations, non-governmental and civil society organizations, and other stakeholders.

The concept paper may be developed along the lines of the regional concept paper described in 8.4.2, box 8.2 below.

5. Formulation. On the basis of the concept paper and the comments and feedback received, BDP drafts the GCF. The key policies for global and regional programming outlined in 8.1.3 are to be taken into account, as well as coherence and complementarity with regional and country cooperation frameworks.

8.2.3 Appraisal and approval 1. On the basis of the final draft GCF, BDP convenes a Programme

Appraisal Committee with representation from as many stakeholders as possible and including the regional bureaux, the OSG, and the Evaluation Office. As part of the work of this committee, regional bureaux validate the linkages to the regional and country cooperation frameworks.

The appraisal process should include considerations for quality programming. See annex 2F.

2. The approval process consists of the following steps:

(a) The BDP Director seeks clearance by the OG of the GCF. Following this clearance, the GCF document is submitted by the Administrator to the Executive Board for approval;

See 2.5.4 on the OG.

(b) The approval of the GCF by the Executive Board provides the authority to the Administrator to commit funds under line 1.3 of the UNDP financial framework;

See 3.1, table 3.1 on the UNDP financial framework.

(c) The resources are then assigned to the BDP Director who arranges for the formulation of global projects.

See 8.3 on global projects.



8.2.4 Contents of the GCF

1. The GCF will be prepared in the format presented in box 8.1. The

GCF submitted for Executive Board approval may not exceed 10 pages, including the cover page and its annex. Courier 10 cpi font must be used with one-inch/2.5 cm margins. Guidelines for the contents of each chapter are given below.

Box 8.1: The global cooperation framework format Chapter I. DEVELOPMENT SITUATION FROM A SUSTAINABLE HUMAN DEVELOPMENT

PERSPECTIVE II. RESULTS AND LESSONS OF PAST COOPERATION III. OBJECTIVES, STRATEGIC AREAS OF SUPPORT AND EXPECTED RESULTS IV. MANAGEMENT ARRANGEMENTS Annex: Resource mobilization target table (see annex 2E for example).

2. I. DEVELOPMENT SITUATION FROM A SUSTAINABLE HUMAN

DEVELOPMENT PERSPECTIVE Chapter I provides a dynamic and forward looking analysis of global development trends, including opportunities and challenges, from a sustainable human development perspective with particular reference to the focus areas. It also includes an analysis of the current status of commitments made in the context of United Nations global conferences and major international agreements. Chapter I ends with a brief overview of the institutional context for, and process followed in, formulating the GCF.

See 1.4 for details of the UNDP focus areas.

3. II. RESULTS AND LESSONS OF PAST COOPERATION

Chapter II outlines the main lessons learned and results of the current GCF, highlighting those areas where UNDP support has had significant impact. The analysis looks specifically at the impact on the poor, women, the environment and employment generation. This chapter also includes a brief statement on the consultative process that led to the GCF document. It highlights the role of governments, intergovernmental organizations and regional institutions as well as civil society organizations, United Nations agencies, funds and programmes and bilateral donors.



4. III. OBJECTIVES, STRATEGIC AREAS OF SUPPORT AND

EXPECTED RESULTS

(a) Objectives. This section spells out the overall objectives and the strategy for the use of UNDP resources and services in global programming. It also outlines the advantages of global programming as an effective vehicle for operationalizing UNDP basic principles; highlights the promotion of these principles in the international development arena; and states the relevance of the GCF to the key policies and aims for such programming.

The key policies and aims for global programming are outlined in 8.1.3 and 8.1.4.

In setting out the objectives and strategy, this chapter must provide a clear and limited agenda of priorities based on stakeholder demand and identify a consultative mechanism for clients that will ensure its continued relevance. It must also provide the justified rationale for the GCF;

(b) Strategic areas of support. This section identifies the proposed areas of support within the UNDP focus areas, as determined by the Executive Board and the strategic results framework;

See 1.3 for the elements of the UNDP results framework. See 1.4 for details on the UNDP focus areas.

(c) Expected results. This section includes a statement on expected results and the indicators to be used in assessing whether the results have been achieved.

5. IV. MANAGEMENT ARRANGEMENTS

(a) Programme management. Chapter IV explains the management and oversight arrangements for the GCF. It describes the delegation of authority from the Administrator to the Director of BDP for the overall responsibility for resources, contents and outcomes and further delegation of authority to BDP Divisions Directors for specific global projects. It also describes in general terms the overall management arrangements for global projects, including the role of various parties in undertaking specific activities, mechanisms for consultation with stakeholders, and the role of steering committees;

(b) Monitoring, oversight and reporting. This section describes the GCF oversight function approved by the Executive Board in accordance with Executive Board decision 95/23. The section also includes information on the manner of involving beneficiaries, stakeholders and partners in the monitoring, review and reporting processes;

UNDP policies on monitoring, oversight and reporting, as outlined in 7.0, apply to all global programming. Reminder: The annual GCF review includes an



(c) Resource mobilization. This section provides realistic estimates

of regular and other resources available and indicates the funding sources in a resource mobilization target table. Activities that will be undertaken to mobilize resources must also be explained in this section.

assessment of the results and the effectiveness of the management arrangements for achieving the results.

8.3 Global projects

8.3.1 Introduction 1. The GCF establishes the priorities, strategies and an indication of

expected results; individual global projects, however, have to be formulated in a way that translates the GCF into concrete activities. The global project documents are the legal basis for carrying out activities and incurring expenditures. The Administrator delegates to the BDP Director the authority to approve global project documents.

See 8.1.3 and 8.1.4 for the policies and aims that apply to the design and implementation of global projects and project documents.

2. The design process for global programmes and projects follows the

same participatory approaches as for country programming, modified to reflect the larger number of governments and other stakeholders.

For how to develop a project, see chapter 4.

3. Any non-programme country may also participate in global activities under the GCF provided that they meet any additional costs that arise.

The policy framework in 4.1 applies to all UNDP supported projects, including those at the global level.

4. The management of global projects may be entrusted to United Nations agencies, governments, intergovernmental organizations or non-governmental organizations.

The policies and procedures set out in 6.2 on management arrangements apply.

8.3.2 Formulation 1. Based on the GCF, the relevant substantive units in BDP develop

projects.

In some cases, the concerned BDP unit may find it useful to prepare an implementation

2. The BDP substantive unit prepares a project document, in consultation with regional bureaux, ensuring that global, regional and country activities complement each other.

strategy to translate the GCF into individual projects.



3. The formulation process should be participatory, incorporating

contributions and comments from stakeholders, including UNDP bureaux and units, and other stakeholders outside UNDP, such as intergovernmental bodies, programme countries, United Nations bodies and agencies, non-governmental and civil society organizations. BDP is responsible for the official circulation of the draft global project document to the concerned partners for comments.

See 5.1.2 for the project document format.

4. The standard formats for project documents apply. The cover page of the project document is also prepared in accordance with the standard format.

See 5.3.3 for a sample cover page, and 8.3.3 on signatories.

5. Where preparatory assistance is used in formulating a global project, the Director of BDP must ensure that the relevant policies are respected and transmit the preparatory assistance document to the concerned partners and stakeholders.

See 4.4.2 for information on preparatory assistance.

8.3.3 Appraisal and approval 1. The network of UNDP country offices and the Global Hub/SURF

network should be used to solicit a global perspective in appraising global project proposals.

2. The relevant BDP unit is responsible for ensuring the appraisal of the draft global project document through a Programme Advisory Committee (PAC), which includes representatives from the regional bureaux and other appropriate bureaux and divisions. As appropriate, consultations at the country level should feed into the appraisal process. The PAC must give full consideration to assessing the consistency of the project with the GCF. The agenda of the meeting must include a discussion of inputs and management arrangements and the Finance Officer must be invited to participate in the meeting.

The purpose and content of the appraisal are the same as those for country programmes and projects. See 5.4.1 and annex 2F for more information on appraising project documents.

3. Global project documents are approved by the Director of BDP on behalf of UNDP and by the designated institution. The Director of BDP is responsible for ensuring compliance with the policies set out in 8.1.3 particularly (f) on participation. Whenever possible, signature of the participating countries should precede approval by the designated institution and by the Director of BDP. At least two of the intended participating governments must provide their endorsement. Their letters of endorsement are referred to on the cover page under “government signature.”

See 8.3.4 on management arrangements for information on who can manage the project.

In the case of GEF initiatives, global project documents are approved by the UNDP-GEF Executive Coordinator on behalf of UNDP.

4. BDP ensures that signed copies of the global project document are returned to each signatory and that copies are distributed to concerned parties.



8.3.4 Management arrangements

1. Management and oversight of the GCF. The Director of BDP is

responsible for the effective management of the GCF and establishes the following arrangements:

(a) To foster an integrated approach, the various components of the GCF, particularly those relating to the emerging and cross-cutting issues, are to be developed and undertaken by cross-divisional teams;

(b) The Gender-in-Development Programme participates in the development and monitoring of the global projects to ensure that resource allocation targets for gender-mainstreaming and gender-specific activities are met;

(c) To ensure that the GCF reflects the priorities and demands of the regional and country cooperation frameworks, each BDP division director establishes an advisory group comprised of representatives from the regional bureaux and relevant UNDP units. These advisory groups provide feedback on content, progress and impact on the global programming activities;

The OG and the Executive Team (ET) periodically deliberate on the global cooperation framework.

(d) The network of the Global Hub/SURF system provides a mechanism to ensure synergy between the projects under the GCF and those at the regional and country level. The network also serves as a channel for articulating emerging challenges and opportunities at the global, regional and country levels, as well as a mechanism for the dissemination of good practices and lessons learned.

2. Managing the global projects. The Director of BDP assigns responsibility for the various components of the GCF to the directors of the BDP substantive divisions. These directors determine the management arrangements for the specific projects under their responsibility in consultation with concerned parties. The following arrangements may be established:

(a) One institution is designated to manage each global project in

accordance with the project document;

See 6.2 on management arrangements. The Executive Board approves UNDP direct execution only for countries in special circumstances. The policies and procedures in chapter 6 on operations apply.

(b) In extending the principle of national execution to global projects, management responsibility may be entrusted to inter-governmental organizations or other intercountry institutions. Where such institutions do not have a basic legal agreement with UNDP for managing projects, such an agreement should be established;

See annex 6C for such an agreement with an NGO.



(c) Global projects follow the policies and procedures for design,

operations, monitoring and evaluation of country-level programmes and projects.

See chapters 5, 6 and 7 for more information on these topics.

(d) GEF global projects may be managed by GEF Principal Technical Advisors, GEF Regional Coordinators or the GEF Coordinator for Global Projects in SEED.

8.3.5 Monitoring, evaluation, reporting and revisions 1. UNDP policies on monitoring, reporting and evaluation, as outlined in

chapter 7, apply to global projects. BDP sets up mechanisms to monitor the global programming activities both at the headquarters level and at the country level. These mechanisms, including the arrangements for reporting, must be described in the project document.

2. Revisions may be made to a project document at any time by agreement among the signatories. Budget revisions must be made at least once a year.

See 6.6 for the policies, procedures and formats on revising project documents.

8.4 The regional cooperation framework

8.4.1 Introduction 1. A regional cooperation framework (RCF) outlines the development

cooperation strategy for a particular geographic region. RCFs focus on defining strategies and expected results that respond to regional priorities and build upon UNDP expertise in the UNDP focus areas.

For details on the focus areas, see 1.4. UNDP may also support collaboration among countries that span more

2. Every effort must be made to strengthen the capacity of institutions that receive support. In particular, the institutions must be encouraged to assume management responsibilities.

than one UNDP region. In this case, coordinated activities may be carried out under the respective RCFs.

8.4.2 Preparation process 1. The preparation of a RCF is a consultative process involving the

widest range of stakeholders, including the government, regional institutions, civil society groups, United Nations agencies, donors and other development partners.

The preparation of an RCF should begin at least one year before the current RCF is due to expire.

2. Analysis. The regional bureau arranges for an analysis that will identify the needs and priorities of the region. Participatory methods for conducting the analysis must be applied to ensure that the regional programming is demand-driven. The analysis is prepared on the following basis:

(a) Studies of regional trends and requirements;

There are five RCFs prepared for Executive Board approval: one for each region.



(b) Workshops, seminars and questionnaires among governments,

civil society organizations, regional commissions, regional institutions, intergovernmental organizations, resident representatives, relevant UNDP headquarters units and other partners;

(c) Meetings in the region to examine the regional needs in the context of global commitments expressed by the General Assembly and United Nations conferences;

(d) Reviews, assessments and evaluations that assess the lessons learned from current RCFs or other development experiences.

3. Conceptualization. The regional bureau prepares a concept paper as a basis for preparing the RCF. The paper validates and advocates the needs and priorities and proposes a framework for UNDP programming in the region. The draft paper is circulated for comments among a broad range of stakeholders and specifically among regional and subregional organizations. It is also circulated to the other regional bureaux, the central units in UNDP headquarters and country offices within that region.

The format for the concept paper is presented in box 8.2 below.

Box 8.2: Regional programming concept paper I. REGIONAL NEEDS AND PRIORITIES

This chapter highlights the regional needs and priorities as perceived by the region as well as its development partners. It also includes the perspective of the regional bureau based on programming experience.

II. METHODOLOGY FOR RE-EXAMINING AND VALIDATING REGIONAL NEEDS AND PRIORITIES

This chapter states the participatory methodology that will ensure that a representative cross- section of the region is involved in the re-examination and validation of the priorities.

III. PROPOSED SCHEDULE OF CONSULTATIONS

This chapter outlines the schedule of the consultative process so that the parties involved know their responsibilities.

Annex: List of reference documents

The annex includes documents that express the regional needs and priorities. (These documents are normally obtained from the regional and subregional institutions.)



4. Formulation. Based on comments received, the regional bureau

translates the revised concept paper into a draft RCF that articulates a strategy for promoting sustainable human development in the region. The regional bureau distributes the draft RCF to the stakeholders for final comments and endorsement.

The design and implementation of an RCF must be consistent with the policies and aims stated in 8.1.3 and 8.1.4.

8.4.3 Appraisal and approval 1. The draft RCF is reviewed by a bureau Programme Appraisal

Committee (BPAC). The BPAC must include representatives from the other regional bureaux, BDP, OSG, and the Evaluation Office. The BPAC should be participatory and, whenever possible, include representation by stakeholders, including governments, United Nations agencies, intergovernmental organizations, CSOs and donors. Members of the UNDP Executive Board, based in New York, may also be invited.

See 2.4.3 for more information on the BPAC. See also annex 2F for the considerations for quality programming which are used to assist the appraisal.

2. To ensure that that there are no gaps in programming from one RCF period to the next, all new RCFs must be approved before the current RCF expires. Approval takes the following steps:

(a) The regional bureau director submits the draft RCF to the OG for

endorsement; (b) The RCF is then submitted to the Executive Board for approval.

The Executive Board may propose changes to the document; (c) The approval of an RCF by the Executive Board constitutes the

authority of the Administrator to assign funds under line 1.2 of the financial framework.

See 3.1, table 3.1 on UNDP financial framework.



8.4.4 Contents of the RCF

1. The RCF will be prepared in the format presented in Box 8.3. The

RCFs submitted for Executive Board approval may not exceed 10 pages, including the cover page and its annexes. Courier 10 cpi font must be used with one-inch/2.5 cm margins. Guidelines for the content of each chapter are given below.

Box 8.3: The Regional Cooperation Framework Format Cover page Chapter I. DEVELOPMENT SITUATION FROM A SUSTAINABLE HUMAN DEVELOPMENT PERSPECTIVE II. RESULTS AND LESSONS OF PAST COOPERATION III. OBJECTIVES, STRATEGIC AREAS OF SUPPORT AND EXPECTED RESULTS IV. MANAGEMENT ARRANGEMENTS Annex: The resource mobilization target table (see annex 2E for example).

2. I. DEVELOPMENT SITUATION FROM A SUSTAINABLE HUMAN

DEVELOPMENT PERSPECTIVE

This chapter outlines the main development goals and priorities of the region within the framework of sustainable human development and makes reference to plans of action that emerged from recent major international meetings, to which the governments in the region are committed.

3. II. RESULTS AND LESSONS OF PAST COOPERATION

This chapter outlines the main lessons learned and results of the current RCF, highlighting those areas where UNDP support has had significant impact. The analysis looks specifically at the impact on the poor, women, the environment and employment generation.

This part also includes a brief statement on the consultative process that led up to the RCF document. It highlights the role of government, intergovernmental organizations and regional institutions, as well as civil society organizations, United Nations agencies, funds and programmes, and bilateral donors.



4. III. OBJECTIVES, STRATEGIC AREAS OF SUPPORT AND

EXPECTED RESULTS

(a) Objectives. Chapter III presents the objectives and the overall strategy for the use of UNDP resources and services. It must also address social, economic, political, legal and institutional issues and resource mobilization and aid coordination at the regional level. This section also highlights the role of UNDP in addressing specific development problems in its focus areas: gender, environment, poverty, sustainable livelihoods and governance. It also indicates the strategy for ensuring that the activities covered by the RCF build on the experiences of other stakeholders.

(b) Strategic areas of support and expected results. The RCF identifies a limited number of areas for UNDP support, the results to be achieved, and indicators that will measure the degree of success in achieving the results. The areas for support must reflect regional development priorities relating to the UNDP focus areas. For each area identified for UNDP support, the following must be provided:

i. Regional priorities. The regional policies, priorities and objectives in the area of support, and the policy and institutional environment;

ii. Programme design. A clear description of how regional programmes or projects will be structured to ensure that the expected results are achieved;

iii. Development cooperation. An indication of resources needed and availability from national and international development partners; an explanation of the complements and synergies among the agencies, funds and programmes of the United Nations system, and other regional or international institutions;

iv. Expected results. A clear statement of the expected results and how the results will be sustained at the end of UNDP support. Identify benchmarks, indicators of success and risks that will serve to assess results and changes.



5. IV. MANAGEMENT ARRANGEMENTS

(a) Programme management. This section explains how the RCF

will be carried out. It describes the arrangements for managing the activities described in chapter III of the RCF and how these management arrangements facilitate the attainment of results. It explains the roles and responsibilities of participating institutions and the mechanisms for promoting coordination and collaboration between different institutions. In particular, this section outlines the delegation of authority from the Administrator to the regional bureau director and from the director to other individuals. It indicates the role and responsibility of the regional bureau and the PPR in the administration of the regional programmes and projects covered in the RCF. This section also indicates the role of other participants, such as intergovernmental organizations in the region, in carrying out activities, and the role of the steering committees in guiding the overall management of the programmes or projects;

Reminder: The annual RCF review includes an assessment of results and the effectiveness of the management arrangements for achieving the results. The review also explores opportunities for synergy among regional programmes and projects.

(b) Monitoring, review and reporting. This section states the arrangements for continuous monitoring, periodic reviews and progress reporting throughout the duration of the RCF. It must indicate how beneficiaries and stakeholders will be involved in the monitoring, review and reporting processes;

UNDP policies on monitoring, review and reporting, as outlined in chapter 7 apply to regional programming.

(c) Resource mobilization. This section provides realistic estimates of regular and other resources available and indicates the funding sources in a resource mobilization target table. It must also explain what activities will be undertaken to mobilize resources.

A model RMT is presented in annex 2E.

8.5 Regional programmes and projects

8.5.1 Introduction 1. The formats and procedures for project documents and PSDs for

country-level programmes and projects also apply to regional programming, adapted as needed to the regional context. The policies and procedures outlined in chapters 4 to 7 on formulating, managing, monitoring and evaluation apply also at the regional level.

The policies in 8.1.3 and 8.4.1 apply to the design and implementation of regional programmes and projects.

2. The design process for regional programmes and projects follows the same participatory approaches outlined in chapter 4, modified to reflect the larger number of governments and other stakeholders.

The policy framework in 4.1 applies to all UNDP supported programmes and projects, including those at the regional level.

3. A non-programme country may also participate in a regional programme or project provided that it meets any additional costs that arise.



4. The management of regional programmes and projects may be entrusted to United Nations agencies, governments, intergovernmental organizations or other regional institutions.

The policies and procedures set out in 6.2 on management arrangements apply.

5. In the case of GEF, the project preparation, appraisal and approval process for regional project is the same as for national projects. For GEF regional projects, endorsement letters are required from the designated GEF Operational Focal Points in all countries participating in the project.

For UNDP-GEF Operational Focal Points, refer to http://www.gefweb.org/BULLETIN/operfocs.htm

8.5.2 Formulation 1. Upon approval of the RCF by the Executive Board, the Administrator

delegates authority to the regional bureau director to approve individual programmes and projects. The regional bureau, together with the country offices, arranges consultations among a wide spectrum of concerned stakeholders. To this end, the regional bureau may seek the assistance of United Nations specialized agencies, funds and programmes, and of civil society organizations.

SPPD and STS funds may be used to facilitate the participation of United Nations specialized agencies. See 3.5 and 3.6. PSDs are normally used for the programme approach, which assumes that a national

2. The regional bureau and the PPR concerned arrange consultations with stakeholders and UNDP headquarters units and prepare a draft regional project document or PSD. The document must meet the requirements set out in Chapters 4 and 5 and in particular, must be specific as to the objectives, outputs and indicators and reflect the cost-effective use of UNDP resources. The regional bureau or the PPR distribute the draft project document or PSD to the stakeholders for comments. Based on those comments, the regional bureau prepares a final draft project document or PSD.

programme framework of the government exists. Where the governments of the region have established a framework for action on a regional or subregional basis, a PSD may also be used.

3. The regional bureau ensures that the management arrangements are carefully worked out during the formulation stage. After consulting with the stakeholders, the regional bureau designates one institution to manage the programme or project. As part of this process, the host country is identified. The designated institution must be involved in the formulation to ensure its readiness to manage the activities as stipulated in the project document or PSD.

8.5.3 Appraisal and approval 1. The regional bureau, or where applicable, the PPR, initiates a field-

based PAC involving stakeholders to appraise the draft project document or PSD. Representatives from United Nations agencies, funds and programmes, NGOs, the applicable SURF Coordination Units and field-based policy specialists, direct beneficiaries and resident representatives in the participating countries must, to the extent possible, participate in the PAC. It also determines whether the programme or project is consistent with the RCF and meets the regional, as well as the sustainable human development priorities of the countries concerned.

The purpose and content of the appraisal are the same as those for country programmes and projects. See 5.4 for more information on appraising PSDs and project documents. The LPAC and BPAC must use the considerations for quality programming set out in Annex 2F. See 2.5.2. and 2.5.3 on LPAC and BPAC.



2. Following the LPAC, the regional bureau may convene a bureau PAC for appraisal by BDP and other units at headquarters, or it may proceed with the finalizing and approval of the document. In so doing, the regional bureau or the PPR seeks endorsement from all countries that wish to participate. At least three of the intended participating Governments, including the host country, must provide their endorsement.

3. Once the minimum number of endorsements has been obtained, the regional bureau director signs the document. The bureau director is responsible for ensuring compliance with the policies set out in 8.1.3 particularly (f) on participation. Regional project documents and PSDs are approved by the regional director on behalf of UNDP and by the designated institution. Whenever possible, the signatures of the participating countries should precede approval by the designated institution and by the regional director. Their letters of endorsement are referred to on the cover page under “government signature.”

See 5.3.3 for a sample cover page.

4. The regional bureau, normally through the PPR, ensures that signed copies of the regional project document or PSD are returned to each signatory and that copies are distributed to concerned parties.

8.5.4 Management arrangements

1. Management and oversight of the RCF. The regional bureau director is responsible for ensuring effective management and monitoring of the RCF.

OG periodically deliberates on the RCFs.

2. Responsibilities of the principal project representative (PPR). The PPR is selected by the regional bureau during the early stages of formulation based on criteria such as country office interest, substantive and managerial capacity in the country office, and presence of regional institutions and expertise in the country. The responsibilities are as follows:

(a) The PPR is accountable to the director of the regional bureau,

who is accountable to the Administrator. The PPR is the focal point in the formulation, monitoring and evaluation of regional programme and project activities;

The PPR is usually the resident representative in the host country of the programme or project.

(b) The PPR carries out his/her responsibilities in cooperation with the regional institution concerned and the resident representatives in the other participating countries. These responsibilities include making necessary arrangements to ensure that participating governments, resident representatives and other key stakeholders participate in decision-making affecting the programme or project. The PPR must keep the partners informed of the movement of programme and project personnel.



3. Managing the regional programmes and projects. The following management arrangements for the specific programmes and projects may be established:

(a) One institution is designated to manage each regional

programme or project, in accordance with the project document or PSD;

See 6.2 on management arrangements and annex 6A on capacity for programme and project management: key considerations.

(b) In extending the principle of national execution to regional

programmes and projects, management responsibility may be entrusted to intergovernmental organizations or other intercountry institutions. Where such institutions do not have a basic legal agreement with UNDP for managing programmes and projects, such an agreement should be established;

(c) Regional programmes and projects follow the policies and procedures for design, operations, monitoring and evaluation of country-level programmes and projects;

(d) The designated institution appoints a manager or coordinator who is responsible for the day-to-day management of activities. He/she works in close collaboration with the PPR;

(e) Where an NGO has been selected as the designated institution, the Governments and UNDP sign the project document. In addition, the NGO must sign a standard project cooperation agreement with UNDP, which will serve as the basic legal framework with the NGO. The PAC must ensure that issues of capacities and competition in selecting the NGO are addressed;

See annex 6C for a sample project cooperation agreement.

(f) The designated institution may use the services of national and regional institutions and civil society organizations in carrying out activities. It is the responsibility of the regional bureau to ensure that the designated institution has the capacity to manage and carry out the activities and achieve the expected results.

4. For GEF regional projects, management oversight is normally maintained by the concerned GEF Regional Coordinator, in addition to the role played by the designated institution and the PPR. For inter-regional projects, an agreement is usually worked out as to which region will take the lead for management of the project, with appropriate information sharing arrangements with the other region(s).

8.5.5 Monitoring, evaluation, reporting and revisions 1. UNDP policies on monitoring reporting and evaluation apply to

regional programmes and projects. The programme or project manager or coordinator is responsible for providing copies of reports to the resident representatives, who, in turn, distribute copies to their host governments and other participating parties.

The policies on monitoring and evaluation are outlined in chapter 7.



host governments and other participating parties.

2. It is recommended that a steering committee composed of stakeholders representing the participating countries and other interested parties be set up. Such steering committees are usually chaired by the host government. The purpose of such a committee is to guide the management in the implementation and monitoring of the programme or project.

3. Revisions may be made to a project document or PSD at any time by agreement among the signatories. Budget revisions must be made at least once a year. The authority to sign revisions on behalf of UNDP may be delegated by the bureau director to the PPR. The regional bureau or PPR ensures that such revisions are countersigned by the institution designated to carry out the programme or project.

See 6.6 for the policies, procedures and formats on revising PSDs and project documents.

4. In the case of the GEF, additional monitoring requirements are in place under the Project Implementation Review (PIR) process.

For further info refer to GEF website www.undp.org/gef/m&e/main.htm


Chapter 9: PROGRAMME SUPPORT TO THE RESIDENT COORDINATOR Page 1

Contents

Page

9.0 PROGRAMME SUPPORT TO THE RESIDENT COORDINATOR 9.1 Background 9.1.1 Successor programming arrangements and SRC funds 9.1.2 Coordinating external assistance 9.1.3 Legislation on the United Nations resident coordinator 9.1.4 Major international conferences 9.2 SRC funds 9.2.1 Assignment of country-level SRC funds 9.2.2 Purpose of SRC funds 9.2.3 Criteria for SRC-funded activities 9.3 Types of activities funded by SRC funds 9.3.1 Collaborative programming 9.3.2 Follow-up to major international conferences 9.3.3 Public information activities and advocacy 9.3.4 Common premises and common services

(United Nations House)

9.3.5 Special assignments 9.4 Management arrangements 9.4.1 Headquarters arrangements 9.4.2 Country-level arrangements 9.4.3 Inputs 9.4.4 Reporting 9.4.5 Approving expenditures in the absence of the resident

coordinator

9.4.6 Accounting arrangements 9.4.7 Review and evaluation procedures 9.5 Documentation of the resident coordinator system



9.0 PROGRAMME SUPPORT TO THE RESIDENT COORDINATOR

9.1 Background

9.1.1 Successor programming arrangements and SRC funds 1. In its decision 95/23 on successor programming arrangements, the

Executive Board earmarked resources under line 3.1 of the UNDP financial framework for programme support to the resident coordinator/aid coordination. These funds are referred to as support to the resident coordinator (SRC) funds.

2. SRC funds are managed separately from Development Support

Services (DSS) funds, which are available to resident representatives for obtaining short-term expert advice nationally or regionally rather than to the UN resident coordinator for resident coordinator purposes.

See 3.1, table 3.1 for the UNDP financial framework For information on DSS, see 3.8.

9.1.2 Coordinating external assistance 1. The government has the primary responsibility for coordinating

external assistance, including assistance provided by the United Nations system, in support of national strategies and priorities. The resident coordinator system, under the leadership of the resident coordinator, seeks to support the government in exercising this responsibility.

2. As stated in the Secretary-General’s programme for reform and endorsed by General Assembly resolution 52/12, all funds and programmes and United Nations information centres will be part of a single United Nations office under the authority of the resident coordinator, who, as the designated representative of the Secretary-General and leader of the United Nations country team, would be accredited to the Head of the Government.

Refer to the Secretary- General’s report of 14 July 1997 “Renewing the United Nations: A Programme for Reform” (A/51/950), Action 10(b).

9.1.3 Legislation on the United Nations resident coordinator 1. The role of the UNDP resident representative with regard to the

position of resident coordinator has been established by, inter alia, General Assembly resolutions 32/197, 34/213, 47/199, 48/209 and 48/162. This role stems from the UNDP extensive global network of country offices and its mandate for multisectoral integrated programming, its experience in managing the resident coordinator function, and its major contributions towards financing the costs of the resident coordinator system. In his programme for reform, the Secretary-General reaffirmed the role of UNDP as the manager and funder of the resident coordinator system.

Paragraph 4 of General Assembly resolution 48/209 "stresses that all field offices should comply fully with the provisions of its resolution 47/199 relating to the role and functions of the resident coordinator, in particular paragraphs 38 and 39 thereof, and reaffirms that the resident representative of the United Nations Development Programme shall normally be designated



2. At its first regular session 1995, the Administrative Committee on

Coordination (ACC) endorsed the "Statement on the role and functioning of the resident coordinator system" after an exhaustive review of ACC arrangements for the functioning of the resident coordinator system, and with a view to responding to the concerns of the General Assembly and the Economic and Social Council in this area. The Administrator has since pursued efforts with heads of funds, programmes, specialized agencies, regional commissions and headquarters departments to ensure the strongest possible support to resident coordinators. A list of pertinent documents is given in 9.5 below.

as the resident coordinator and that, in accordance with its resolution 46/182, the resident coordinator shall normally coordinate the humanitarian assistance of the United Nations system at the country level".

9.1.4 Major international conferences 1. Since 1990, a United Nations global agenda for people-centred

development has begun to emerge, as demonstrated through commitments and programmes/plans of action emanating from the World Summit for Children (New York, 1990), the World Conference on Education for All (Jomtien, Thailand, 1990), the United Nations Conference on Environment and Development (Rio de Janeiro, 1992), the International Conference on Human Rights (Vienna, 1993), the International Conference on Population and Development (Cairo, 1994), the World Summit for Social Development (Copenhagen, 1995), the Fourth World Conference on Women (Beijing, 1995), the Second World Conference on Human Settlements (Istanbul, 1996) and the World Food Summit (Rome, 1996). The United Nations global agenda has created a common ground for United Nations system cooperation with host Governments on national development policies and programmes.

The global agenda is being further defined by five year reviews of the recommendations of these conferences. This includes environment 1997 and population 1999 and women 2000.

9.2 SRC funds

9.2.1 Assignment of country-level SRC funds 1. Resource assignments under line 3.1 are made in two stages:

(a) Initial resource assignment. At the beginning of each year, 75

per cent of available resources are distributed among resident coordinators/resident representatives. All resident coordinators/resident representatives will therefore receive the same initial allotment. The amount varies from year to year, depending on total available resources;

(b) Subsequent resource assignment. The remaining funds are

assigned by the Development Group Office (DGO) based on a specific request of the resident coordinator and a review of the annual work plans of the resident coordinator system (RCS). The annual work plans of the RCS are an integral part of the annual report of the resident coordinator.



9.2.2 Purpose of SRC funds

1. SRC funds allow resident coordinators to respond quickly and

effectively to opportunities for United Nations system collaboration. Each SRC-funded activity acts as a catalyst for the development and strengthening of country coordination initiatives.

2. As funder and manager of the resident coordinator system, UNDP

provides SRC funds as seed money to initiate joint endeavours of the United Nations system for which additional inputs from governments, the United Nations system and other donors may be necessary. These endeavours may be in one of the following priority areas:

(a) More integrated programming and advocacy. To maximize

the efficiency and effectiveness of the United Nations system response to national development objectives and priorities through the development and implementation of coordinated, coherent United Nations programmes at the country level and the mobilization of required resources.;

(b) Common premises and services. To reduce administrative

expenditures at the country level, for instance through the rationalization of common premises and services.

See the report of the Administrator on successor programming arrangements of 27 April 1995 (DP/1995/32).

9.2.3 Criteria for SRC-funded activities 1. In order to receive SRC funds, activities must meet one of the

following criteria:

(a) Have a clear linkage to and contribute to more coherent and better- coordinated operational activities of funds, programmes and specialized agencies;

(b) Be innovative and have a catalytic effect on joint United Nations system activities.

9.3 Types of activities funded by SRC funds The following types of activities qualify for SRC funding:

9.3.1 Collaborative programming 1. Assisting the Government in the preparation and implementation of

the country strategy note (CSN);



2. Assisting the United Nations country team in the preparation of a

United Nations Development Assistance Framework (UNDAF), based on a common country assessment (CCA) and a United Nations system database of common social and economic indicators;

3. Establishing inter agency thematic working groups to exchange

information and share expert opinions, harmonize programmes and develop collaborative and joint activities in areas of common concern; and

4. Organizing field-level committee reviews of country programmes

aimed at harmonization and alignment with national priorities.

9.3.2 Follow-up to major international conferences 1. Ensuring appropriate follow-up to the emerging global agenda,

particularly through upstream policy and programme advocacy in support of host governments' attempts to implement their international commitments at the national level. In this connection, the resident coordinator draws on the end products of ACC task forces on conference follow-up.

9.3.3 Public information activities and advocacy 1. Initiating activities, with the support of United Nations Information

Centres (UNICs), that promote a better understanding of the objectives, themes and initiatives of the United Nations system and show how it is assisting the Government to achieve national development priorities in a coherent and coordinated manner.

9.3.4 Common premises and common services (United Nations House)

1. Commissioning studies as part of the preparatory work aiming at the establishment of an integrated and more cost-effective common United Nations system presence at the country level. This includes support to the resident coordinator system in the areas of management, administration, finance and human resources, such as common premises and common services, integrated information and communications systems and inter-agency training. It is expected that any activity be coordinated with the UNDG sub-group on common premises and services;

2. Establishing, where justified by the workload, a Resident Coordinator

Support Unit. SRC funds cannot, however, be used to cover long-term or permanent staff capacity. Long-term or permanent staffing requirements will be covered through the redeployment of posts from within the regular biennial budget of the office. Staff capacity of a



strictly temporary nature can be financed from the SRC funds. To

reinforce such units and to broaden the sense of ownership by the United Nations system as a whole, resident coordinators may seek additional financial and/or in-kind contributions from the system.

9.3.5 Special assignments

1. Addressing specific requests by the Administrator for action at the

country level to implement General Assembly resolutions or decisions of the Secretary-General, such as United Nations assistance to democratization processes, including national elections.

9.4 Management arrangements

9.4.1 Headquarters arrangements 1. The management of line 3.1 resources is delegated to the Director of

the Development Group Office.

9.4.2 Country-level arrangements 1. Resident coordinators/resident representatives manage SRC funds,

seeking to maximize outputs and results, and are accountable for their use, in accordance with UNDP Financial Regulations and Rules.

2. Resident coordinators plan activities and develop an annual work

plan in consultation with United Nations colleagues, whether or not they are represented at the field level. The plan reflects comparative advantages of each organization of the United Nations system and indicates the use of SRC funds along with the other financial or in-kind resources that each organisation may agree to provide.

9.4.3 Inputs 1. The following inputs are financed, either fully or partly, by SRC

funds: short-term consultancies, workshops, logistics for meetings, local training relating to collaborative programming, equipment and supplies, including reproduction of reports, materials for public information, communications, etc.

Note 1: It is expected that most expenditures incurred for inputs

will be in local currency.

Note 2: The Special Service Agreement (SSA) contract or the Activities of Limited Duration (ALD) contract is used for recruiting consultants. Refer to the Personnel Manual for recruitment regulations and procedures.



Note 3: A maximum of $15,000 per year may be used for purchasing equipment and supplies. The United Nations system partners at the country level may contribute to such expenditures.

9.4.4 Reporting 1. Resident coordinators/resident representatives are responsible for

submitting to the Secretary-General an annual report on the activities of the resident coordinator system. Resident coordinators are requested to provide in the annual report information about specific results achieved and their impact on national development through activities financed with SRC funds. The annual report of the resident coordinator should be submitted no later than 31 January each year.

Where UN organisations have contributed financial or in-kind resources to complement SRC funds, this should be mentioned in the report.

9.4.5 Approving expenditures in the absence of the resident coordinator 1. In the absence of the resident coordinator, an acting resident

coordinator is appointed, in accordance with the ACC “Statement on the role and functioning of the resident coordinator system”. The acting resident coordinator may propose activities to be carried out with SRC funds in accordance with these guidelines. In order to ensure accountability, the UNDP resident representative a.i. or UNDP officer-in-charge must formally authorize the use of SRC funds in line with standing financial regulations and rules.

For the ACC statement, see the Programming Manual Reference Centre on the UNDP Intranet.

9.4.6 Accounting arrangements 1. The SRC funds will be assigned to resident coordinators using the

allotment/expenditure modality, with the involvement of the Office of Budget. Allotments are issued under fund code "BM 350". The field office accounting system table allows the BM allotment and corresponding expenditure to be recorded and managed. The financial policies and procedures that govern the general management of allotments apply equally to the BM allotment.

2. SRC funds not spent in any one year will revert back to general

resources for reprogramming. However, when activities have been financially and contractually committed during a given year but carried out only in the following year, the final payments may be made in the following year. Resident coordinators should report these “undisbursed commitments” in the annual report of the resident coordinator. Based on information provided in the report, DGO will add the total amount indicated as undisbursed commitments to the allotment of the following year. Therefore, there is no need to raise a miscellaneous obligation document (MOD). Every item included under undisbursed commitments must be supported by written evidence of commitments and maintained at the country level for future review by external and internal auditors.



9.4.7 Review and evaluation procedures

1. The Status of Allotment Reports (SARs) are to be used for financial

reporting of account BM 350. The same procedures and frequency that apply to allotment accounts in general should be followed.

2. Every two years, DGO, assisted by other units of UNDP and United

Nations entities, conducts an assessment of the use of SRC funds. Particular attention is given to the results achieved and the impact on national development. On the basis of these assessments, DGO prepares reports for the Administrator. The Administrator submits these reports to the Executive Board as requested.

3. The use of SRC funds may also be examined on the occasion of

Country Reviews.

See 7.5 on review and reporting on country-level cooperation.

9.5 Documentation on the resident coordinator system § UNDP Executive Board decision 95/23 of 16 June 1995 on

successor programming arrangements § UNDP Administrator Direct-Line Communication No. 5 of 23 October

1995 on integrated follow-up to major United Nations conferences § UNDP Circular on support to resident coordinators/resident

representatives for coordination activities (SPR Co-ordination Supplement to DSS) (UNDP/ADM/94/70) and its amendment of 9 February 1996 (UNDP/ADM/94/70/Amend.1)

§ UNDP Administrator’s letter to all UN resident coordinators of 7 August 1997

§ UNDP Finance Manual § United Nations General Assembly resolution 32/197 of 20 December

1977 § United Nations General Assembly resolution 34/213 of 19 December




1993 § United Nations General Assembly resolution 50/120 of 16 February

1996 § United Nations General Assembly resolution 52/12 of 12 November

1997 § United Nations General Assembly resolution 52/12B of 19 December


1998



§ Report of the Secretary-General to the Fifty-first Session of the

United Nations General Assembly on “Renewing the United Nations: A Programme for Reform” of 14 July 1997 (A/51/950)

§ ACC note on the country strategy note of 11 May 1993 § ACC “Statement on the role and functioning of the resident

coordinator system” (ACC/1995/1, Annex 1) § Guidelines for the Formulation of UNDAF (to be adopted in first

quarter 1999) § Guidelines for the preparation of annual reports of the resident

coordinator on operational activities of the United Nations system of November 1997

CHAPTER STANDARD FORMS SECTION1 None2 CCF Format (Box 2.1)

RMTCCF Extension – Format for Note by Administrator

Annex 2DAnnex 2EAnnex 2G

3 SPPD cover pageSPPD report formatSTS cover pageSTS budgetSTS report formatDSS report formatTrust Fund AgreementClearance Form (Trust Funds)Third-party cost-sharing agreement - modelPrivate sector cost-sharing agreement - modelTRAC-2 assignment formSummary of Programme Financial Information

3.5.63.5.83.6.73.6.83.6.103.8.63.13.43.13.5Annex 3BAnnex 3CAnnex 3DAnnex 3E

4 Logframe Matrix 4.2.85 Programme Support Document (PSD) format (4 pages)

Project Document format (3 pages)Budget formatCover Page formatAdvance authorization formatPSD Table 1 - Funding of the national programmePSD Table 2 - Objectives, outputs and monitoring indicators or benchmarksPSD Table 3 - Workplan for the next 12 monthsPSD Table 4 - Budget by objective and output

5.1.15.1.25.2.65.3.35.5.6Annex 5AAnnex 5BAnnex 5CAnnex 5D

6 Standard Letter of Agreement between the government and a UN Agency under NEXStandard Letter of Agreement between UNDP and the government for the provision of supportFinancial Report (Sample), 2 pagesStandard Project Cooperation Agreement between UNDP and the NGOStandard revision cover page

Annex 6B

Annex 6C

Annex 6DAnnex 6E

Annex 6F7 Field Visit Report Form

Annual Programme/Project Report (APR)Terminal Report FormTripartite Review (TPR) Report FormEvaluation PlanCountry Office Annual Report

Annex 7BAnnex 7CAnnex 7DAnnex 7EAnnex 7FAnnex 7G

8 GCF FormatRCF Format

Box 8.1Box 8.3

9 None

UNDP PROGRAMMING MANUAL UPDATES

15 August 2000 1 of 2 Date revised Chapter

& section

Page # Original version Description of changes

Oct 1999 - : added Glossary Nov 1999

3.6.4 27 4 (a) “STS budgets must use only lines 61 to 64 as shown in the example below.”

:changed text to: “STS budgets must use lines 61 to 69 as shown in the …”

Aug 2000 Annex 3B 56-59 Third-Party Cost-Sharing Agreement

: replaced with revised agreements as per PROG/00/03 Circular dated 14 July 2000.

May 1999 4.3.5 20 1. UNDP provides… : added margin text note: “See 6.4.6 for policies and procedures on the management of micro capital grants.”

Nov 1999 5.2.5 14 050 Miscellaneous 051 Sundries 052 Reporting Costs 054 Direct Costs (GEF/Capacity 21 only )

:changed to: 052 Reporting Costs 053 Sundries 054 Direct Costs…

Nov 1999 5.2.7 16 BL 10. Personnel 1 (e) Monitoring and Evaluation [BL15]…

:added sentence at the end: “It may include travel by representatives of the Government coordinating authority, the designated institution, the UNDP country office or UNDP headquarters.”

May 1999 5.2.7 18 BL 70 Micro-capital grants : added policy on micro-capital grants budget component.

Nov 1999 5.2.7 18 BL 50 Miscellaneous (a) Sundries [BL 51]… (b) Reporting costs [BL 52]… (c) Direct Costs [BL 54]…

:changed to: (a) Reporting costs [Bl 52] (b) Sundries [BL 53]… (c) Direct Costs [Bl 54]…

Nov 1999 6.4.3 17 “3. When UNDP contracts

services in the context…” :added text: “3. When UNDP contracts services in the context of country office support to national execution, or in the context of direct execution, UNDP contracting…”

May 1999 6.4.6 22 - : added policy for management of micro-capital grants.

Nov 1999 6.6.3 33 - :added “5. The designated institution may incur expenditures that exceed its assigned annual budget by four per cent or by US $20,000.00, whichever is higher, in order to cover differences between actual and pro-forma costs.

UNDP PROGRAMMING MANUALUPDATES

19 November 1999 2 of 2

Date revised Chapter&

section

Page # Original version Description of changes

Nov 1999 7.5.1 23 3 (b) “ii. …consensus on follow-upactions, especially anymodifications…”

: changed margin text to: “SeeUNDP/PROG/99/3 of 29 October 1999 inthe Reference Centre which containsadditional guidelines on preparing thisreport.”

Nov 1999 7.5.2 25 - : added margin textnote: “See the country review guidancenotes in the Programming ManualReference Centre in the UNDP Intranet.”

Nov 1999 8.5.3 18 last sentence of #2 “At least two ofthe intended…”

:changed to: “At least three of theintended…”

Nov 1999 9.1.4 3 “1. Since 1990, a United Nationsglobal agenda…”

:added margin text, align with “1.Since…”note: “The global agenda is being furtherdefined by 5 year reviews of therecommendations of these conferences.This includes environment 1997 andpopulation 1999 and women 2000.”

Nov 1999 9.2.2 4 1 and 2 : revised text 1 and 2

Nov 1999 9.3.4 5 (last sentence)“1. … It isrecommended…”

:changed word “recommended” to“expected”

Nov 1999 9.3.4 6 last sentence: “2. ….Residentcoordinators are encouraged…”

:changed to:“2. … To reinforce such units and tobroaden the sense of ownership by theUnited Nations system as a whole, residentcoordinators may seek additional financialand/or in-kind contributions from thesystem.”

Nov 1999 9.4.2 6 1 (a). : (a) was changed to #2 with textrevisions

Nov 1999 9.4.3 7 (2nd sentence) “Note 3….systempartners…”

:change word “are expected to” to “may”

Nov 1999 9.4.4 7 1. Resident coordinators… : margin text was added; align with“…specific results achieved and theirimpact…” note: “Where UN organizations have…”

Nov 1999 9.4.5 7 (last sentence)”1. …UNDP officer-in-charge…”

:added text in the end: “in line withstanding financial regulations and rules."