2016 Consortium Program of Work and Budget

Transcription

1 Version: 30 October 2015 Revision Consortium Program of Work and Budget Background The paper presents the proposed 2016 Program of Work and Budget of the CGIAR Consortium 1 ( 2016 PoWB ), approved by the Consortium Board on 8 October 2015, with amendments incorporating changes based on comments from the Peer Review Team during its meeting of 30 th October Action requested by the Fund Council: 1. The Consortium Board requests Fund Council approval of the Consortium s 2016 P0WB as described in this paper. 1 Consortium means Consortium Board and Consortium Office. FC14, 4 5 November 2015, Washington, D.C. Page 1 of 18

2 Contents Part 1 Introduction 3 Part 2 Key 2016 Assumptions 3 Part Key Priorities.4 Part 4 Budget Summary.5 Table 1: 2016 Total Budget.6 Table 2: 2016 Budget to be Funded from the CGIAR Fund..7 Table 3: 2016 Budget to be Funded with Revenue from Other Sources 7 Table 4: Funding Sources...8 Table 5: Summary of revenue and Expenditure from all Funding Sources..9 Table 6: Posts by Department 10 Annex CGIAR Consortium Key Actions and Outputs/Deliverables..11 CGIAR Consortium Board Page 2 of 18

3 Part 1 Introduction 1. This proposed 2016 Program of Work and Budget for the CGIAR Consortium ( 2016 PoWB ) recognizes that the CGIAR system will transition to a new governance model and organization structure during the 2016 calendar year, headed by a CGIAR System Council and supported by a CGIAR System Office The draft Transition Plan and accompanying budget, submitted to the Fund Council on 5 August 2015 (approved on a no objection basis on 4 September 2015) proposed that the Consortium Office prepare a 2016 calendar year Consortium budget that assumes the continuation of its current responsibilities and work program. Further, any funds allocated for the 2016 budget that have not been committed by the time of the establishment of the CGIAR System Office would be transferred to the new office The Consortium intends to hand over the organization (building, assets and staff) to the new organization on a going concern basis, to enable a smooth transition rather than winding down the current organization and starting over. 4. The Consortium presumes that the work of the Transition Team will define the tasks and functions of the new System Council and Office, which may require adjustments to the Program of Work and Budget during the calendar year. Part 2 Key 2016 PoWB Assumptions 5. Taking note of the proposed timing for transition to the new system organization (currently anticipated to be 1 July 2016 based on Fund Council deliberations), and the guidance from the Fund Council as set out at paragraph 2 above, the Consortium Office proposes a 2016 PoWB that: a. Identifies four key priorities identified by management in the year ahead, with particular focus on supporting the development of the full proposals for the next generation of CGIAR Research Programs ( CRP2 ) in line with the new CGIAR Strategy and Results Framework approved by the Consortium Board in May 2015; and b. Summarizes proposed deliverables for the Consortium s continuing responsibilities. 6. The proposed 2016 budget for the Consortium amounts to $7,166,577. The funding sources are indicated at paragraph 11 below. 2 Decision of the CGIAR Fund Council at its Thirteenth Meeting, April Paragraph 55 of the draft Transition Plan issued on 5 August CGIAR Consortium Board Page 3 of 18

4 Part Key Priorities 7. The four priorities for the Consortium in 2016 are summarized as follows: a. CRP 2nd Call: The top priority is clearly to do everything we can to put the strongest possible CRP2 investment portfolio in place and help mobilize the resources necessary to implement this work. The Consortium is carrying out the value for money analysis and preparing recommendations to the Fund Council. Key decisions are which proposals should move forward as well as the allocation of core and uplift budgets. There are other related tasks, however: preparation of the Full Proposal Guidance for submission to the Consortium Board for approval; contributions to the resource mobilization strategy particularly development of the business case (the value proposition) at portfolio level, together with key strategic partnerships and meetings related to resource mobilization; preparation of management responses to the IEA CRP evaluations, and IAU CRP audits, and ensuring that lessons learned find their way into CRP development process; and GCARD3 consultations and meeting preparation and associated processes such as the site integration (or country coordination) aspects. b. Transition to System Council and Office: The Consortium will engage on several fronts with the Transition Team, particularly its governance / legal specialists. The Consortium will also work closely with the Fund Office to ensure a smooth transition into the new System Office. c. Annual cycle of reports and plans: The third priority is the regular cycle of the various annual plans and reports all necessary to keep the system going. d. Risk management: To ensure that a well-governed and run entity is handed over to the new System Organization, risk assessment has to be conducted and a report prepared on key strategic system-wide risks and then monitored over the transition. 8. Other ongoing work will be continued within the capacity of the office and as long as it does not provide a distraction from the four top priorities outlined above. 9. Staffing: In 2014 the Consortium Office switched to an approach of 1-year staff contracts during the uncertainty following the MTR report. Subsequent to the Fund Council s April 2015 decision to locate the new System Office, which will take over most of the functions of Consortium Office, in Montpellier, the Consortium Board supported CGIAR Consortium Board Page 4 of 18

5 management s decision to return to normal Human Resources practices, that is, 3 year contracts managed through annual performance review cycles. 10. As the overall approach of the Consortium is to maintain the office as a going concern, the Consortium Office will not create new positions during the transition, but it will recruit replacements for departing staff and renew fixed-term contracts as per the normal policies. Part 4 Budget Summary The proposed 2016 budget for the Consortium amounts to $7,166,577 4, with the forecast revenue from the CGIAR Fund Window 1 to remain at the same level as for 2015, being $6,614,000 and the remainder to be financed through revenue from other sources, specifically: internal tax retained in accordance with the Headquarters Agreement with France; overhead chargeable to projects and hosted entities; and cost recovery from Shared Services. The over-arching assumption is that indications from the CGIAR Fund are that revenue from this source will be the same as for 2015 and that there will be no reduction of this amount. The other sources of income are considered to be stable and the probability of their realization high. The Consortium recognizes that in times of uncertain revenue streams it is important to be even more cost conscious than normal. Therefore, the Consortium Board and the Consortium Office will regularly monitor where savings can be made without prejudicing delivery on its 4 priorities. 11. Supported by the summary of Consortium priorities and proposed deliverables/ outputs set out at Annex 1 5, the 2016 Budget and associated revenue sources are presented in the Tables 1 to 5 below. Table 1 shows the combined budget to be funded from the CGIAR Fund and other revenue sources, compared to the 2015 budget and the forecast expenditures to the year ending 31 December 2015; Table 2 shows the budget elements to be funded solely from the CGIAR Fund; Table 3 depicts the budget elements to be funded from other sources of revenue; Table 4 summarizes the funding sources; and Table 5 shows the summary of revenue and expenditure from all sources of funding. 4 As at 1 January 2015, the :$ exchange rate was 1:$1.21. The euro has been volatile, leading to an exchange rate of $1.1 to 1 as at 31 August This rate was used in preparing the 2016 PoWB. 5 The Consortium Office will prepare an operational document detailing the steps to be taken for engaging Centers and other stakeholders, with regard to deliverables that require endorsement of other stakeholders, to ensure that target dates are met. CGIAR Consortium Board Page 5 of 18

6 Table 1: 2016 Total Budget Budget Header 2016 Budget ($) Forecast Expenditure for 2015 Amended the year ending Budget ($) 31 December 2015 ($) Board Fees & Insurance 1 273, , ,515 Staff Costs 2 4,230,136 3,971,783 3,521,720 Consultants 1,508,701 1,345,000 1,396,330 Travel 3 581, , ,406 Building Management Expenses 160, , ,508 Administrative Expenses 232, , ,139 Meetings 4 180, , ,144 Amount to be allocated by the Consortium Board - 201, ,000 Total 7,166,578 6,931,665 6,655, The Consortium Board has been availed requisite resources to ensure that it appropriately undertakes its fiduciary duty. The budgeted expenses are based on the full year. The activities anticipated include engagement with various stakeholders, participation at Center Board of Trustee meetings, attendance at Consortium Board meetings, honoraria and engagement in transition matters. 2. In 2015, there were no salary adjustments made. The budget for 2016 staff costs is based on the 2015 actual costs adjusted upwards with an intergrade and indexation rate of 3%. The amount is also edged up by the necessity to appoint additional legal expertise during the substantive incumbent s family leave. 3. The Travel budget header is exclusively for travel outside Montpellier, by Consortium officials. 4. The Meetings budget header is for meetings to be hosted in Montpellier including travel for non-consortium participants for whom complete costs are covered by the Consortium e.g. Peer Review Team and external stakeholders participating in meetings in Montpellier. CGIAR Consortium Board Page 6 of 18

7 Table 2: 2016 Budget to be Funded from the CGIAR Fund Budget Header 2016 Budget ($) Board Fees & Insurance 273,270 Staff Costs 1 3,723,503 Consultants 1,508,701 Travel 581,734 Building Management Expenses 1 142,111 Administrative Expenses 206,781 Meetings 1 180,000 Total 6,616, Includes the relevant portion of the costs for which a part is funded from other sources of income, as per the notes to Table 3 below. Table 3: 2016 Budget to be Funded with Revenue from Other Sources Budget Header 2016 Budget ($) Board Fees & Insurance - Staff Costs 1 506,633 Consultants - Travel - Building Management Expenses 2 18,489 Administrative Expenses 2 25,357 Meetings - Total 550, The following staff costs are funded through revenue from Open Access-Open Data, Recovery from Shared Services, the Gender Research Action Plan and SIAC: Data & Knowledge Manager (100%), Knowledge Management Associate (100%), Senior Gender Advisor (100%), Legal Officer (30%), Director of Shared Services (25%), Shared Services Associate (25%), Finance Manager (10%) Accounting & Procurement Associate (10%). 2. A proportion of Building & Management and Administrative Expenses is assigned to the CGIAR Internal Audit Unit, based on the number of their staff as a fraction of the combined Consortium Office and the Internal Audit Unit staff members (i.e. 4 staff out of 36.5). CGIAR Consortium Board Page 7 of 18

8 Table 4: Funding Sources Revenue Budgeted for 2016 ($) Revenue from Window 1 of the CGIAR Fund 6,614,000 Revenue from Other Sources: Retained Internal Tax 1 232,657 Cost Recovery from Shared Services 2 125,000 Overhead Chargeable to Projects and Hosted Entities 3 194,921 Total Revenue from Other Sources 552,578 Grand Total Revenue 7,166,578 Expenditure Consortium Operations 7,166,578 Total Expenditure 7,166,578 Surplus/Deficit - 1. In accordance with the Headquarters Agreement entered into by the French Government and the CGIAR Consortium, an internal tax is deducted from the salaries of members of staff, at a rate of 5.5% of gross salary ($4,230,136). 2. Estimated cost recovery from shared services initiatives. 3. The overhead chargeable to projects and hosted entities is 4% of the annual budget for the projects and 4% of reference costs for hosted entities. The projects for which the Consortium Office has administrative and operational responsibility, and their budget for 2016 are listed below: The Gender in Research Action Program (GRAP): $1,680,000. Open Access - Open Data: Implementation in 2015 was behind schedule. Therefore, the remaining 2015 funds allocated will be carried over to Strengthening Impact Assessment at the CGIAR (SIAC): $1,515,000. African Agricultural Technology Platform Virtual Information Platform (AATP-VIP): $858,000. Furthermore, the Consortium provides office and administrative facilities to the Internal Audit Unit. The reference budget amount for determining the overhead payable by the Internal Audit Unit is $700,000. CGIAR Consortium Board Page 8 of 18

9 Table 5: Summary of Revenue and Expenditure from all Funding Sources Descriptor From the CGIAR Fund ($) From Other Sources ($) Total ($) Revenue 6,614, ,578 7,166,578 Expenses 6,616, ,478 7,166,578 Surplus/(Deficit) (2,100) CGIAR Consortium Board Page 9 of 18

10 Table 6: Posts by Department Number of Department and Post Posts Chief Executive Office 3.0 Chief Executive Officer Senior Advisor - Governance Assistant to the Executive Office Science 8.5 Chief Science Officer Director of Science Senior Science Officer Senior Foresight Advisor (Secondee - 50%) Senior Gender Advisor (Funded by the Gender Research Action Plan) Data & Knowledge Manager (Funded by Open Access-Open Data) Science Fellow Knowledge Management Associate (Funded by Open Access-Open Data) Assistant Finance and Corporate Services 11 Chief Finance Officer Director of Human Resources & Talent Management Director of Shared Services (25% Funded through Cost Recovery from Shared Services) Finance Manager (10% Funded from SIAC) IT Manager Finance and Management Accountant Accounting and Procurement Associate (10% Funded from SIAC) Shared Services Associate (25% Funded through Cost Recovery from Shared Services) Finance Fellow IT Fellow Assistant Strategic Partnerships 6.5 Director Strategic Partnerships (Secondee) Partnership Advisor Protocol Officer (Secondee) Communications Manager Communication and Information Associate (50%) Communications Fellow Assistant Legal 3.5 General Counsel Temporary Legal Officer Legal Officer (30% Funded by Open Access Open Data) Assistant (50%) Total 32.5 CGIAR Consortium Board Page 10 of 18

11 Annex CGIAR Consortium Key Actions and Outputs/Deliverables Key activities 2016 outputs / deliverables Target completion date 1. Policies/Guidelines and Standards - development and cyclical revision 1.a Common Operational Framework (approved by/involves engagement with the Fund Council): (e.g. CGIAR Financial Guidelines Series numbers 1 to 6; Investment and Reserves policies; CRP Monitoring Principles and Reporting Templates; CGIAR Principles on the Management of Intellectual Assets; CGIAR FC Dispute Resolution Policy). As relevant to the priorities set during the Transition Period, selected financial guidelines and other policies to be revised and drafts readied for tabling to the appropriate structures of the new System Organization. (a) Drafts of revised versions of the following documents to be submitted to the CGIAR System Council by 31 October 2016, subsequent to having been prepared by the Consortium Office and incorporating input from the Centers: o FG2: CGIAR Accounting Policies and Reporting Manual; o FG4: Guidelines for Preparing the Medium-Term Plans and the 2010 Financing Plans; o Investment Policy Guidelines; o CRP Monitoring Principles and Reporting Templates. (b) The Consortium Office will prepare revised drafts of the following documents and submit them, no later than 30 November 2016, to the Centers for consideration. Center-endorsed versions will be submitted to the CGIAR System Council no later than 31 March 2017: o FG3: CGIAR Auditing Guidelines; o FG5: CGIAR Cost Allocation Guidelines; o FG6: CGIAR Procurement of Goods, Works and Services Guidelines. CGIAR Consortium Board Page 11 of 18

12 Key activities 2016 outputs / deliverables Target completion date Common Operational Framework policies cont/d (c) By 31 December 2016 the Consortium Office will have undertaken the biennial review of Principles on the Management of Intellectual Assets in consultation with the Centers and the Fund Council, and sought the approval of the Consortium Board. 1.b CGIAR system wide policies, guidelines and standards (not approved by Fund Council): (e.g. Risk management process; Communications Strategy; Intellectual Assets Guidelines; Good Governance Framework;). (a) Risk management process, monitoring, and oversight to be fully embedded. Workshops will be held in the CO to identify the key risks within the various departments; their causes; existing and proposed controls; probability of occurrence; impact; risk rating; mitigating actions; additional controls to be implemented; and owner of the risk. (b) Work commenced in 2015, geared towards identification of key strategic risks for the whole system, will be continued. (a) A comprehensive risk management framework and charter to be presented to the Audit and Risk Committee, and subsequently, to the Consortium Board in Q (b) Risk management reports to be submitted to the Audit and Risk Committee and Consortium Board (and their successors), on a quarterly basis. These will incorporate the escalation and de-escalation of specific risks, premised on the risk statements in the financial statements of the Centers and the Consortium. (c) A comprehensive escalation (and de-escalation) policy to be agreed between the Consortium and Centers by 31 December 2016 to address system-wide whistleblower claims, thereby ensuring that the right issues CGIAR Consortium Board Page 12 of 18

13 Key activities 2016 outputs / deliverables Target completion date are being addressed at the right level (note: Each Center, and the Consortium, has its own internal whistleblower policy). 2. Core business: Managing annual CRP cycle Programmatic: Continue to manage and lead the existing CRP portfolio. Preparation of the 2015 CRP Annual Report. Implement the Strategy and Results Framework. Evaluate / review and approve CRP Full Proposals. Develop model partnership agreement for the CRPs to use in the second round. Ongoing. The report to be submitted for approval by governing organs by 30 June 2016 and published by 31 August Ongoing. From 1 April 2016 until end of the year. To be submitted for approval by the CGIAR Systems Council by 30 September Financial: Guidelines for Results based budgeting and reporting for CRPs agreed with CRPs and Centers. Establish baseline for reporting and transaction costs. Preparation of quarterly CRP finance reports. To be submitted for approval by the CGIAR Systems Council by 30 th September March To be extracted from CRP quarterly reports submitted by individual Centers (deadline 1 month post quarter-end) and reporting per CRP to be sent to Lead Centers within 1 week. CGIAR Consortium Board Page 13 of 18

14 Key activities 2016 outputs / deliverables Target completion date Intellectual Assets: Develop funding agreements for the second round of CRPs. Preparation of the Annual CGIAR Center Consolidated Intellectual Assets Report (for submission by the Consortium to the Fund Council IP Group). 30 November May CGIAR Annual Report: Comprised of 4 core reports (Portfolio, CGIAR Financial, Consortium Financial, and IA Report) plus an overall CGIAR Annual Report 2015 Consortium Audited Financial Statements CGIAR Financial Report to be complete and approved by the Consortium Board and delivered to the Fund Council CGIAR Intellectual Assets Report to be complete and approved by the Consortium Board and delivered to the Fund Council. Audited version to be ready by 31 March 2016 and submitted for Consortium Board approval no later than 7 April May June The 2015 CGIAR Annual Report. To be submitted to the governing structures by 31 July CGIAR Consortium Board Page 14 of 18

15 Key activities 2016 outputs / deliverables Target completion date 3. Shared standards / systems / services (development and service provision) One Corporate System: Develop common reporting tool for both OCS and non-ocs Centers to ease consolidation of information. The common reporting tool will be finalized by 30 June 2016 and implemented effective 1 January OCS facilitating common reporting Participate in the OCS Steering Committee to improve collaboration in development of phases 2 and 3. Open Access: All 15 Centers develop Open Access Support and facilitate the development Implementation Plans. of plans to make Centers and CRPs Open Access. (This project is funded from extrabudgetary resources and not from the Consortium core budget) Other Shared standards, systems or services: Office365/Collaboration Platform Shared Services Business Plan: Identify and implement 2-3 initiatives as proof of concept to implement Shared Services Shared Procurement: 2 CRP collaboration platforms using CGIAR Consortium-wide Office 365/SharePoint online implemented. Shared Services and Value for Money concepts embedded in the CRP second call. Shared Agreements which represent business of over 1.2M negotiated. (a) The Open Access development plans are targeted to all be finalized by 30 November (b) A proposal to extend funding will be submitted on 15 September The expectation is that, factoring funder review and comments, the approval will be received before 31 March June To be elaborated in the Call for Full Proposals due in November The Full Proposals are to be submitted by 31 March December CGIAR Consortium Board Page 15 of 18

16 Key activities 2016 outputs / deliverables Target completion date Negotiate agreements for ICT, GIS, services and Libraries on behalf of Centers Shared Collaboration Tools Staff Security Initiative In collaboration with AIARC tender for the following services: Emergency Medical Evacuation; Business Travel Accident; Security Tracking; Security Evacuation. In collaboration with ICT group tender system-wide ICT services for and identity management. Maintenance of Google Applications (cgxchange) service and support for CGIAR Research Centers and programs delivered. Staff Security Accountability Framework finalized and approved by Consortium Board Travelers' tracking tool implemented in all Centers. 4. Communities of Practice/ Partner Relations (development and support) Strategic Communication: internal and external Maintain online media presence: web, social media, etc. 30 June October December March Ongoing across the 2016 year. Brand recognition/ donor engagement Select participation in events. Ongoing across the 2016 year. CGIAR Consortium Board Page 16 of 18

17 Key activities 2016 outputs / deliverables Target completion date Partnership Development Communities of Practice Coordinate Legal /IP CoP 5. Internal Consortium business Good governance and compliance Develop CRPs Guidelines on Partnership. Run GCARD3 consultation process with GFAR through ca. 20 national and 3 regional consultations (incl. CAADP-CGIAR agenda development in Africa, and enhancing role of Embrapa in LAC consultation). Develop Consortium strategic partnerships with major world-class research organizations and private sector. Coordinate and facilitate annual (or six monthly as required) meetings of Communities of Practice, including KM Leaders, Heads of Comms, ICT Leaders, CapDev, CLIPnet; Corporate Service Executives and HR. Coordinate and facilitate annual meeting of Community of Practice, and ad-hoc engagement with International Treaty governing body as required. Prepare documentation for and support Consortium Board and Fund Council meetings. CGIAR Consortium Board Page 17 of 18 October Ongoing across the 2016 year. Ongoing across the 2016 year. By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders. By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders. Meeting planned for April 2016; May 2016; July 2016; October 2016; and November 2016.

18 Key activities 2016 outputs / deliverables Target completion date Efficient financial management Legal transition to new Organization Support Committees. Annual reporting against Program of Work and Budget. Internal Monthly Management Accounts and Cash flow projections. Develop a new governance framework document and other legal documents as required. Initiate process to amend the Agreement establishing the Consortium as an International Organization. Amend or revoke System-wide or internal policies and guidelines. Amend current CRP funding agreements to reflect single Organization status. o Each 6 months: SPPC, GPCC, NEC. o Each quarter: ARC and AOG. o Ad hoc as required. By 31 May 2016; and by 31 October 2016 Within 15 calendar days after month end. 31 July 2016, or as amended by Transition Team planning cycle. 31 July 2016, or as amended by Transition Team planning cycle. 31 July 2016, or as amended by Transition Team planning cycle. 31 July 2016, or as amended by Transition Team planning cycle. CGIAR Consortium Board Page 18 of 18