2016 Annual Report of the Provident Fund Management Board on Operations of the Staff Provident Fund of IRENA

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1 A/8/10 14 December 2017 INTERNATIONAL RENEWABLE ENERGY AGENCY Eighth session of the Assembly Abu Dhabi, January Annual Report of the Provident Fund Management Board on Operations of the Staff Provident Fund of IRENA The 2016 Annual Report of the Staff Provident Fund Management Board on Operations of the Staff Provident Fund of IRENA (Annual Report) has been prepared by the Staff Provident Fund Management Board (Management Board) pursuant to Article 4.9 of the Principles for the Staff Provident Fund of the International Renewable Energy Agency (Principles), approved by the Assembly in decision A/1/DC/4. Pursuant to Article 4.9 of the Principles, the Management Board shall provide an annual report on operations of the Staff Provident Fund (Provident Fund) to the Assembly and to Provident Fund participants within 180 days of the end of the fiscal year. The annual report shall include financial statements that clearly show the result of operations and the financial condition of the Provident Fund for the relevant year. The financial statements of the Provident Fund shall be audited by the external auditors of the Agency. The present Annual Report is being provided, through the Council, to the Assembly. This Annual Report covers the operations of the Provident Fund and the activities of the Management Board for the period beginning 1 January to 31 December 2016.

2 A/8/10 I. Background 1. At the first session of the Assembly of the International Renewable Energy Agency (IRENA) in April 2011, Members established the IRENA Staff Provident Fund (Provident Fund) and approved the Principles for the Staff Provident Fund of the International Renewable Energy Agency (Principles) which are set out in decision A/1/DC/4. 2. In accordance with Article 1.4 of the Principles, the operations of the Provident Fund are to be managed by the Staff Provident Fund Management Board (SPFMB). During the period under review, Germany and the United Arab Emirates were the representatives of the membership on the Management Board. The two Executive Management representatives were Mr. David Iyamah, Director the Administration and Management Services Division, at Agency Headquarters in Abu Dhabi and Mr. Dolf Gielen, Director of the IRENA Innovation and Technology Centre, in Bonn. In addition, the IRENA Staff Association were represented on the Management Board by one Professional staff member, Mr. Deger Saygin and an alternate, Ms. Asami Miketa; and by one General Service staff member, Ms. Jan Mola and an alternate, Ms. Janil Marlin. II. Purpose of the Report 3. The 2016 Annual Report of the Provident Fund Management Board on Operations of the Staff Provident Fund of IRENA (Annual Report) has been prepared by the Management Board pursuant to Article 4.9 of the Principles and is being made available through the Council to the Assembly and to Provident Fund participants (Participants). The purpose of this Annual Report is to inform the IRENA membership as well as Participants about the operations of the Provident Fund and the activities of the Management Board for the period beginning 1 January to 31 December III. Major Activities of the Staff Provident Fund Management Board 4. In 2016, the Management Board met formally four times. These meetings were dedicated to reviewing and discussing among other issues, the performance of the fund, as well as various administrative matters. a) In April 2016, an information session was held for participants of the Staff Provident Fund. The session was used as a forum to update participants on the performance of the fund. The participants expressed satisfaction on the performance of the fund. At the session representatives from Financial Cooperative Association of International Civil Servants (AMFIE), made a presentation on alternative investment services to participants who are exploring options for the investment of the proceeds from their Provident Fund contribution following their separation from IRENA. Zurich International also made a presentation on a Deferred Benefit Plan to which separated staff may deposit the proceeds from their contribution. b) The Annual Report and Financial Statement of the Staff Provident for fund for the period 1 January 2015 to 31 December 2015 was presented to the meeting of the 11 th Council in May The financial statement was audited by the Agency s External Auditor which rendered an unqualified audit opinion. c) In September 2016, the Annual General Meeting (AGM) of Provident Fund Participants took place, during which the audited financial statements for 2015 was also presented to the participants. d) The expiration of the mandate of IRENA members representatives, Germany and UAE, at the end of 2016 and steps towards the election of new members was discussed during the September 2

3 A/8/ PFMB meeting. Subsequently, a proposal for the election of new member countries to the SPFMB was presented at the 12th Council meeting in November, 2016 at which both countries expressed interest in continuing to represent members at the SPFMB. The proposal was submitted to the 7th Assembly for a final decision. e) Future retention and management of the funds of the separated staff from IRENA by the SPFMB was discussed at several meetings during the period under review. The SPFMB concluded that it was not in the best of the Fund to continue the practice of co-mingling and managing the contributions of separated staff who upon leaving IRENA kept their contribution with the Fund. The Board wants to avoid the potential liability associated with managing those funds. The PFMB after deliberation decided to seek legal advice on the matter. IV. Operations of the Staff Provident Fund in As of 31 December 2016, there were 107 total net participants contributing to the Provident Fund and eligible to receive benefits, compared to 111 on 31 December At the end of the financial period on 31 December 2016, the Provident Fund s total net assets were valued at USD 9,172,695 million. 3

4 A/8/10 7. In accordance with Article 4.9 of the Principles, this Annual Report includes the Financial Statements of the Provident Fund for 2016, which have been audited by the External Auditor of the Agency which has rendered an unqualified audit opinion. The Financial Statements, including the audit opinion, are attached in Annex. 8. The Chair of the Management Board expresses his appreciation to the Management Board Members for their dedication and service. 4

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