2012 (Second) Consolidated Annual Progress Report on Activities Implemented under the Iraq UNDAF Fund

Transcription

1 2012 (Second) Consolidated Annual Progress Report on Activities Implemented under the Iraq UNDAF Fund Report of the Administrative Agent of the Iraq UNDAF Fund for the period 1 January - 31 December 2012 Multi-Partner Trust Fund Office Bureau of Management United Nations Development Programme 31 May 2013

2 Iraq UNDAF Fund Participating Organisations Economic and Social Commission for Western Asia (ESCWA) Food and Agriculture Organization (FAO) International Labour Organization (ILO) International Organization for Migration (IOM) Office of the United Nations High Commissioner for Refugees (UNHCR) United Nations Children s Fund (UNICEF) United Nations Conference on Trade and Development (UNCTAD) United Nations Development Programme (UNDP) United Nations Educational, Scientific and Cultural Organization (UNESCO) United Nations Entity for Gender Equality and the Empowerment of Women (UNWOMEN) United Nations Environment Programme (UNEP) United Nations Human Settlements Programme (UN-HABITAT) United Nations Industrial Development Organization (UNIDO) United Nations Office for Project Services (UNOPS) United Nations Population Fund (UNFPA) World Food Programme (WFP) World Health Organization (WHO) Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund i

3 Contributing Donors Australia Belgium Canada Denmark Finland Greece Iceland India Ireland Italy Japan Luxembourg The Netherlands New Zealand Norway Qatar Republic of Korea Spain Sweden The Scottish Government Turkey United States Kuwait Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund ii

4 Abbreviations and Acronyms AA ALP AWP CCA COR DRM DSRSG EAD ECD EFA EMIS ESCWA FAO FTE GIS GoI HPS IHCHR ICI IDP IHEC IIEP ILO IMCI IPSAS IRFFI ISRB ITF KRG KRSO LLE LOA MDG Administrative Agent Accelerated Learning Programme Annual Work Plan Common Country Assessment Council of Representatives of Iraq Drought Risk Management Deputy Special Representative of the Secretary-General Electoral Assistance Division (United Nations) Early childhood development Education for All Educational Management Information System Economic and Social Commission for Western Asia Food and Agriculture Organization of the United Nations Foundation of Technical Education Geographical Information System Government of Iraq Health Promoting Schools (initiative) Independent High Commission for Human Rights International Compact with Iraq Internally displaced person Independent High Electoral Commission International Institute for Educational Planning International Labour Organization Integrated Management of Childhood Illness International Public Sector Accounting Standards International Reconstruction Fund Facility for Iraq Iraq Strategic Review Board Iraq Trust Fund Kurdistan Regional Government Kurdistan Regional Statistics Office Lessons Learned Exercise Letter of Agreement Millennium Development Goal Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund iii

5 MPTF MICS3 MMR MoU MoA MoCH MoCRA MoDM MoEd MoEl MoEn MoF MoH MoI MoHESR MoLSA MoMPW MoP MoT MoWR MoYS MPTF Office NDP NDS NGO NFE OHCHR OECD PCN PHC PMAC POT PRS PWG SCSO SME Multi-Partner Trust Fund 2006 Multiple Indicator Cluster Survey Maternal mortality rate Memorandum of Understanding Ministry of Agriculture Ministry of Construction and Housing Ministry of Council Representative Affairs Ministry of Displacement and Migration Ministry of Education Ministry of Electricity Ministry of Environment Ministry of Finance Ministry of Health Ministry of Interior Ministry of Higher Education and Scientific Research Ministry of Labour and Social Affairs Ministry of Municipalities and Public Works Ministry of Planning Ministry of Trade Ministry of Water Resources Ministry of Youth and Sports Multi-Partner Trust Fund Office National Development Plan National Development Strategy Nongovernmental organization Non-formal education Office of the High Commissioner for Human Rights (United Nations) Organization for Economic Cooperation and Development Programme/Project Concept Note Primary health care Prime Minister s Advisory Commission Protection Outcome Team Poverty Reduction Strategy Priority Working Groups Steering Committee Support Office Small and Medium Enterprises Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund iv

6 SOT SOE TFER TOR TVET UNAMI UNCT UNCTAD UNDAF UNDG UNDP UNEP UNESCO UNFPA UN-HABITAT UNHCR UNICEF UNIDO UNIFEM UNODC UNOPS WFP WHO Sector Outcome Team State Owned Enterprises Task Force for Economic Reform Terms of Reference Technical and vocational education and training United Nations Assistance Mission for Iraq United Nations Country Team United Nations Conference on Trade and Development United Nations Development Assistance Framework United Nations Development Group United Nations Development Programme United Nations Environment Programme United Nations Educational, Scientific and Cultural Organization United Nations Population Fund United Nations Human Settlements Programme United Nations High Commissioner for Refugees United Nations Children s Fund United Nations Industrial Development Organization United Nations Development Fund for Women United Nations Office on Drugs and Crime United Nations Office for Project Services World Food Programme World Health Organization Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund v

7 Definitions Allocation Amount approved by the relevant steering committee for a project/programme. Annual Work Plan (AWP) Required United Nations Development Group (UNDG) Agency plans that set out the activities to be undertaken during the year to reach the results specified in the Agency s Country Programme Action Plan. AWPs include a timeframe, budget and responsibilities for completing the activities. Approved Project/Programme A project or programme, including budget, etc., that has been approved by the relevant steering committee(s) for fund allocation purposes. Contributor Commitment A contribution expected to be received or already deposited by a contributor, as per signed Standard Administrative Arrangement (SAA) with the UNDP Multi-Donor Trust Fund Office (MPTF Office), in its capacity as the Administrative Agent (AA) of the Fund. Contributor Deposit Cash deposit received by the MPTF Office for the Fund. Delivery rate A financial indicator of the percentage of funds that have been utilized by comparing the expenditures reported by a Participating Organization against the net funded amount. Indirect Support Cost A general cost that cannot be directly related to any particular programme or activity of the Participating Organizations. Under UN MPTFs, these costs amount to 7 percent as per the UNDG agreed MPTF cost recovery. Net Funded Amount Amount transferred to a Participating Organisation less any refund transferred back by a Participating Organisations. Participating Organisations Organisations that have signed a Memorandum of Understanding (MoU) with the MPTF Office. Project Expenditure The sum of expenses reported by all Participating Organizations irrespective of which basis of accounting each Participating Organization follows. Project Financial Closure A project or programme is considered financially closed when all financial obligations of an operationally completed project or programme have been settled, and no further financial charges may be incurred. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund vi

8 Project Operational Closure A project or programme is considered operationally closed when all activities for which a Participating Organisation is responsible under the approved programmatic document have been completed. Project/Programme/JP Document An Annual Work Plan (AWP) or a programme/project document that has been approved by the Steering Committee for fund allocation purposes. Project Start Date Date of transfer of first instalment from the MPTF Office to the Participating Organisation. Total Approved Budget Amount approved by the Steering Committee. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund vii

9 Table of Contents EXECUTIVE SUMMARY... X 1 INTRODUCTION STRATEGIC FRAMEWORK AND GOVERNANCE ARRANGEMENTS PROGRAMME/PROJECT DEVELOPMENT, REVIEW AND APPROVAL PROCEDURES PROJECT/PROGRAMME APPROVALS AND ACHIEVEMENTS OVERALL FUND ACHIEVEMENTS AND CHALLENGES FINANCIAL PERFORMANCE Financial Overview Contributions Earned Interest Transfer and Balance of Funds Expenditure Reported by Participating Organisations Cost Recovery Transparency and Accountability Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund viii

10 Tables Table 2-1 List of Government of Iraq/UN Co-Chairs for UNDAF PWGs and UNDAF Sub-PWGs... 5 Table /2012 Approved Projects/Programmes, Cumulative as of 31 March Table 6-1 Financial Overview, Cumulative as of 31 December Table 6-2 Total Donor Deposits, as of 31 December Table 6-3 Apportionment of Interest/Refunds for UNDG ITF, as of 31 December Table 6-4 Received Interest (Agency and Fund), Cumulative as of 31 December Table 6-5 Net Funded Amount by Priority Working Group, Cumulative as of 31 March Table 6-6 Net Funded Amounts by Participating Organisation, Cumulative as of 31 March Table 6-7 Financial Delivery Rates by Participating Organisation as of 31 December Table 6-8 Total Expenditure by Category, Cumulative as of 31 December Figures Figure 2-1 Iraq UNDAF Fund Governance Structure... 4 Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund ix

11 Executive Summary Introduction The 2012 Annual (Second) Progress Report on Activities Implemented Under the Iraq United Nations Development Assistance Framework (UNDAF) Fund (the Iraq UNDAF Fund) is submitted to the Prime Minister s Advisory Commission (PMAC) and the Ministry of Planning (MoP) of the Government of Iraq (GoI) as well as the Donors of the Iraq UNDAF Fund by the United Nations Development Programme (UNDP) Multi-Partner Trust Fund Office (MPTF Office), in its capacity as the Administrative Agent (AA) of the Iraq UNDAF Fund in fulfillment of the reporting provisions of the Standard Administrative Arrangement (SAA). The information presented in this Progress Report covers the period 1 January to 31 December Strategic Framework The first Iraq UNDAF, which covered the years , was signed on 5 May The Iraq UNDAF Fund was subsequently established to support the Iraq UNDAF in line with its five priority areas: Improved governance, including protection of human rights. Inclusive, more equitable and sustainable economic growth. Environmental management and compliance with ratified international environmental treaties and obligations. Increased access to quality essential services. Investment in human capital and empowerment of women, youth and children. A mid-term review of the Iraq UNDAF is currently being undertaken in parallel to the revised National Development Plan (NDP), which is being finalised by the GoI to better reflect the emerging development priorities for the period The expected outcome of the UNDAF mid-review will be a realigned and prioritised UNDAF that will be extended until Report Structure The Annual Progress Report is structured into six sections. Section 1 provides a brief introduction on the Fund and any relevant developments. Section 2 outlines strategic framework and governance structure. Section 3 outlines project approval procedures. Section 4 provides a summary of project approvals and overall achievements as highlighted by the Participating UN Organisations. Section 5 highlights Fund-level achievements and challenges during the first year of operations. Section 6 provides an update on financial performance. Project Approval Status During the reporting period, from 1 January to 31 December 2012, an additional five projects / JPs were approved for a total of $29,853,909 by the Iraq UNDAF Fund Steering Committee following technical review and vetting by Iraqi authorities, the Priority Working Groups (PWGs) and the Iraq UNDAF Fund Steering Committee. Of this amount, $19, was transferred to Participating UN Organizations bringing the total number of approved projects/jps under the Fund to six with a total budget of $30,613,793. Financial Performance A total of $22,555,580 in transfers and new contributions were deposited in the Iraq UNDAF Fund in 2012, bringing the cumulative total deposits to $31,303,195. Fund-earned interest of $31,280 was reported in 2012 with a cumulative interest amounting to $64,799. As of 31 December 2012, the total accumulate deposits to the Fund were $31,367,994. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund x

12 As of 31 December 2012, a total of $30,613,793 was approved and subsequently $19,168,641 was transferred for five new projects/programmes in 2012 under the Governance and Human Rights priority area leaving a balance of $10,983,863 with the Administrative Agent in the Iraq UNDAF Fund account. During the reporting period, total expenditure reported was $1,588,628. Transparency and Accountability The MPTF Office has continued to provide regular information on the operations of the Iraq UNDAF Fund on its GATEWAY ( a knowledge platform providing real-time data, with a maximum two-hour delay, on financial information from the MPTF Office accounting system on donor contributions, programme budgets and transfers to Participating UN Organisations. All narrative reports are published on the MPTF Office GATEWAY, which provides easy access to over 9,600 relevant reports and documents, with tools and tables displaying financial and programme data. By providing easy access to the growing number of progress reports and related documents uploaded by users in the field, it facilitates knowledge sharing and management among UN Organisations. It is designed to provide transparent, accountable fund-management services to the UN system to enhance its coherence, effectiveness and efficiency. The MPTF Office GATEWAY has been recognised as a standard setter by peers and partners. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund xi

13 1 Introduction The 2012 Annual (Second) Progress Report on Activities Implemented Under the Iraq United Nations Development Assistance Framework (UNDAF) Fund (the Iraq UNDAF Fund) is submitted to the Prime Minister s Advisory Commission (PMAC) and the Ministry of Planning (MoP) of the Government of Iraq (GoI), as well as the Donors of the Iraq UNDAF Fund by the United Nations Development Programme (UNDP) Multi-Partner Trust Fund Office (MPTF Office), in its capacity as the Administrative Agent (AA) of the Iraq UNDAF Fund in fulfillment of the reporting provisions of the Standard Administrative Arrangement (SAA). The information presented in this Progress Report covers the period 1 January to 31 December To support the implementation of Iraq s first UNDAF ( ), the Iraq United Nations Country Team (UNCT) established the Iraq UNDAF Fund in The Iraq UNDAF Fund focuses allocations to support five UNDAF priority areas, while supporting sustainability of the previously funded UNDG Iraq Trust Fund (UNDG ITF) programmes as relevant. During the reporting period, the GoI was in the process of reviewing and revising the current National Development Plan (NDP) to better reflect the emerging development priorities for the period In parallel, the Iraq UNCT was preparing to undertake a mid-term review of the existing Iraq UNDAF. The expected outcome of the UNDAF mid-review will be a realigned and prioritised UNDAF that will be extended until Accordingly, The Iraq UNDAF Fund Steering Committee will decide on the extension of the duration of the Iraq UNDAF Fund following the UNDAF Midterm review in the second quarter of A key issue that has emerged and is currently confronting the UN system is the sequencing and harmonizing of financing to enable the UN system to provide development expertise and ensure continuity of large transformational programming that was started as a result of support from the UNDG ITF such as the Iraq Public Sector Modernization Programme (I-PSM). While the Iraq UNDAF Fund was established in 2010, with financing from the UNDG ITF, it was not expected to be a large-scale UN funding mechanism and it has indeed not been well capitalized. In parallel, discussions of Iraq government co-financing or cost-sharing were underway, with the expectation that Iraqi would begin to finance the UN system to provide the upstream, technical services it deems necessary. As of 2012, although the GoI established the Iraqi Partnership Fund to support government co-financing, to date it has been unable to utilize this mechanism effectively. This is compounded by a shrinking donor community since 2010, due to Iraq s sizeable oil-based revenues and middle-income status. The overall impact is diminished ability to finance the UN system s support to Iraq. The information contained in the remainder of the Report is consolidated based on information and data provided in the individual progress reports and financial statements submitted by Participating Organisations to the MPTF Office as well as information on decisions taken by the Iraq UNDAF Steering Committee throughout the course of reporting period. It is neither an evaluation of the Iraq UNDAF Fund nor the MPTF Office s assessment of the performance of the Participating Organisations tasks that belong to an independent evaluation. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 1

14 2 Strategic Framework and Governance Arrangements 2.1 Iraq United Nations Development Assistance Framework The UNCT for Iraq and the GoI developed the first UNDAF The UNDAF, as a strategic framework, is aligned with the NDP, and the five UNDAF priorities guide the UNCT in addressing the MDG-related development priorities and Iraq UNDAF Fund allocations over the coming four years. The UNDAF articulates five priority areas: Improved governance, including human rights. Inclusive, more equitable and sustainable economic growth. Environmental management and compliance. Increased access to quality essential services. Investment in human capital and empowerment of women, youth and children. The emphasis of the UNDAF articulates a transition from Iraq s recovery and transition towards longer-term development in line with Iraq s NDP It embodies the Paris Principles and covers the full spectrum of MDGs, enabling the UNCT to provide comprehensive support to the efforts of the Iraqi state to achieve the MDGs by A mid-term review of the existing Iraq UNDAF is currently being undertaken in parallel to the revised NDP, which is being finalised by the GoI to better reflect the emerging development priorities for the period The expected outcome of the UNDAF mid-review will be a realigned and prioritised UNDAF that will be extended until Accordingly, The Iraq UNDAF Fund Steering Committee will decide on the extension of the duration of the Iraq UNDAF Fund following the UNDAF Midterm review scheduled for the second quarter of National Development Plan (NDP) and Poverty Reduction Strategy Processes The GoI, with support from the World Bank, developed the Poverty Reduction Strategy (PRS) as part of the overall process that contributed to the NDP. The UNCT and World Bank have advocated for integration of the two strategies to leverage synergies as well as ensure that the issues highlighted by the PRS are prioritised within the NDP. The PRS identified six outcomes to address poverty in Iraq: (i) higher income from work for the poor; (ii) improvement of health status of the poor; (iii) expansion and improvement of education of the poor; (iv) a better living environment for the poor; (v) effective social protection for the poor; and (vi) less inequality between poor women and men NDP Priorities The NDP provides the first medium-term planning framework for holistic development in Iraq. The NDP process has guided the development of the UNDAF, whereby the UNDAF has been aligned with national development priorities (including population and the labour force; agriculture; industry; tourism; infrastructure, including transportation and communication; water and sanitation; housing; education; health; women, children and youth; vulnerable groups; poverty; MDGs; sustainable environment; spatial differentiation; and good governance). The Government of Iraq is revising the current NDP to better reflect the emerging development priorities for the period The revised NDP proposes a development and investment programme in 12 sectors worth 218 trillion Iraqi dinars, or US$186 billion over the plan period, of which US$100 billion would be funded by the federal budget and the remaining US$86 billion would be funded by the private sector. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 2

15 2.2 Steering Committee Meetings The second meeting of the Iraq UNDAF Steering Committee was held in Baghdad on 18 January At this meeting, two additional JPs and one project were reviewed and approved for a total of $8,916,971. The projects/programmes were approved in two tranches. Another project within the Governance and Human Rights UNDAF priority area was reviewed and approved electronically by the Steering Committee in April 2012 for a total budget of $3,091, A third meeting the Iraq UNDAF Steering Committee was held in Baghdad on 7 October At this meeting, Phase II of the Iraq Public Sector Modernisation (I-PSM) programme was approved within the Governance and Human Rights UNDAF priority area for a total budget of $ 17,845, Governance Arrangements The Iraq UNDAF Fund operates within the UNCT coordination structure to ensure interagency, donor, and government participation in identification, design, development and approval, as well as implementation and monitoring of Iraq UNDAF Fund activities. The governance arrangements for the Fund are based on the UNDAF coordination structures in an effort to avoid duplication and encourage harmonisation. Therefore, the Fund utilises the UNDAF arrangements outlined below, while ensuring that the Fund management, oversight and other functions are equally provided for within the scope of the various structures. The following section outlines roles and processes, and describes how they contributed to the overall governance and accountability of the Iraq UNDAF Fund. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 3

16 2.3.1 Iraq UNDAF Fund Governance Structure Figure 2-1 Iraq UNDAF Fund Governance Structure Steering Committee The Steering Committee coordinates and oversees the operations of the Iraq UNDAF Fund and provides overall strategic guidance and oversight, as well as making decisions on fund allocation. It is co-chaired by the Government (Chairman, PMAC) and the UN (RC) with balanced representation from GoI and the UN, including rotational representation from line ministries, the UNCT and donors contributing to the Fund. For 2012, the membership includes: Government: Ministry of Planning, Ministry of Finance, Kurdistan Regional Government (KRG), Ministry of Planning and Ministry of Environment. UN: UNFPA, UNHABITAT, UNOPS and WFP Donors: Japan and Australia Steering Committee Support Office (SCSO) The mandate of the SCSO, under the supervision of the DSRSG/RC, is to support and facilitate the work of the Steering Committee, including assistance in proposal development, as well as review of submissions prior to the Steering Committee s approval. The SCSO tracks the status of the proposals, provides advice to the Participating Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 4

17 UN Organisations and Steering Committee, and follows up on decisions taken by the various contributing structures to ensure timely follow-up and adherence to agreed Iraq UNDAF Fund procedures Priority Working Groups (PWGs) At the operational level, the Iraq UNDAF Fund utilises the UNDAF PWGs with representation from UNCT and national partners. The membership of the PWG includes all relevant UN system funds, programmes and agencies in Iraq, including non-resident agencies and national counterpart representatives (GoI and civil society) and will be endorsed by the UNDAF Steering Committee at the beginning of each year. Each PWG will be jointly chaired by the UN and GoI. The UN chair is represented by the lead agency and will take on the additional responsibility of providing the secretariat for the PWG. Each PWG will be co-chaired by the lead UN Agency and the lead GoI ministry. They will be composed of experts in the relevant priority area, including from appropriate GoI as well as non-governmental organization (NGOs) and civil society organisations (CSOs), as appropriate and feasible, and have a flexible structure, to incorporate inputs from other stakeholders. Table 2-1 List of Government of Iraq/UN Co-Chairs for UNDAF PWGs and UNDAF Sub-PWGs UNDAF PWGs/ UNDAF Sub-PWGs UN Co-Chairs Government of Iraq Co-Chairs Governance and Human Rights Inclusive Economic Growth UNDP UNHCR ILO UNIDO Prime Minister Advisory Commission Ministry of Human Rights Ministry of Planning Ministry of Industry and Minerals Social Transfers WFP Ministry of Trade Ministry of Finance Environment FAO UNDP Ministry of Environment Ministry of Water Resources Essential Services 1 RCO Ministry of Planning Education Health and Nutrition Water and Sanitation Housing Food Security Human Capital UNESCO UNICEF UNFPA WHO UN-HABITAT UNICEF UN-HABITAT UNHCR FAO WFP UN-WOMEN UNICEF Ministry of Education Ministry of Higher Education and Scientific Research Ministry of Health Ministry of Higher Education and Scientific Research Ministry of Municipalities and Public Works Ministry of Water Resources Ministry of Housing Ministry of Municipalities and Public Works Ministry of Agriculture Ministry of Trade Ministry of Labour and Social Affairs Ministry of Youth and Sports 1 The five sub-pwgs under Essential Services will be coordinated jointly by the RCO and Ministry of Planning through bi-annual coordination meetings. These meetings will be at the level of sub-pwg Co-Chairs to facilitate information exchange, programmatic synergy and reporting. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 5

18 2.3.5 Administrative Agent/Multi-Partner Trust Fund Office (MPTF Office) The role of the MPTF Office, as the AA for the Iraq UNDAF Fund, includes the receipt, administration and management of contributions from donors, disbursement of funds to Participating UN Organisations in accordance with decisions of the Steering Committee, and consolidation and dissemination of progress reports to the MoP and donors. The consolidated report produced by the MPTF Office presents the progress of the Iraq UNDAF Fundfunded projects, narrative and financial, aligned to the Priority Working Group (PWG) structure. Through the MPTF Office GATEWAY, a public website on all MPTFs administered by the MPTF Office, it ensures full transparency of the operations of the Iraq UNDAF Fund. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 6

19 3 Programme/Project Development, Review and Approval Procedures The Iraq UNDAF Fund proposal formulation, review and approval process is summarised below: 3.1 JP/Project Concept Note The Participating UN Organisation/s will prepare a JP/Project Concept Note (PCN) in consultation with the GoI partner/s. The JP/Project should be in line with UNDAF priorities and should follow the UNDG guidelines. The JP/Project will reflect the UN s programming principles and will ensure the mainstreaming of crosscutting themes, including human rights; the Millennium Declaration and MDGs; youth, gender, peace-building and reconciliation; and employment and decent work approaches. The PCN is shared with the relevant UNDAF PWG/sub-PWG, along with the endorsement letter of the line ministry. The UNDAF PWG/sub-PWG Co-Chairs are responsible for ensuring that the proposed intervention contributes to the UNDAF priorities. Once endorsed by the UNDAF PWG/sub-PWG, the Co-Chairs forward the PCN, the endorsement letter and the minutes of the PWG meeting detailing the discussions held and the decision to endorse the PCN to the Iraq UNDAF Fund SCSO. The SCSO reviews the concept note and related documentation and provides any comments to the submitting UN Organisation/s within four working days from receiving the documents. The SCSO will keep record of the final version of the concept note and supporting documents. 3.2 JP/Project Document The coordinating UN Organisation develops a JP document (involving two or more UN Organisations) or a project document (involving a single UN Organisation) with the relevant line ministry/ies using the template within four weeks following the submission of the approved PCN. In the case of a JP, the coordinating UN Organisation is responsible to consolidate the inputs of all the Participating UN Organisations. The coordinating UN Organisation will also ensure to reflect the roles and accountabilities of all Participating UN Organisations. Once formulated, the coordinating UN Organisation will share the JP/Project document with the Iraq UNDAF Fund SCSO for its review and feedback. The review and written feedback shall be completed within one week from receipt. The coordinating UN Organisation will address the comments and submit the JP/Project document to the PWG/sub-PWG Co-Chairs for circulation and review by the PWG within one week. Upon approval, the PWG Co-Chairs will send the JP/Project document to the Iraq UNDAF Fund SCSO with a copy of the minutes indicating the endorsement of the PWG/sub-PWG, in addition to necessary supporting documentation as indicated in the JP/Project Submission Form. The SCSO will have a final review to ensure submission within two days from receiving the documents. The documents should include the JP/Project document, signed submission form, relevant line ministry endorsement, and PWG/sub-PWG meeting minutes endorsing the PCN. Once the final document is agreed upon and approved by the PWG/sub-PWG, SCSO will forward the final document to the Fund SC for its approval. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 7

20 3.3 JP/Project Approval The SCSO will submit the JP/Project Document to the Fund SC for its approval. The representative/s of the UN Organisation/s submitting the JP/Project will present the proposed JP/Project to the Steering Committee. The SC will have the final say and authority to give its full approval or partial approval with comments or reject it completely. If approved with comments, the SCSO will work with the respective PWG/sub-PWG Co-Chairs and submitting UN Organisation/s to modify the JP/Project document as necessary within four working days. Once revised, SCSO will electronically re-submit the document to the SC within five working days for its consideration, with a 48-hour no objection period. Approved JP/Project documents will be signed by the Representative/s of the submitting UN Organisation/s and the Steering Committee Co-Chairs, and then forwarded by the Iraq SCSO for onward submission to the MPTF Office for the release of funds. In the case of JPs, all UN Organisations participating in the JP shall be signatories to the JP document and receive funding directly from the AA. The signatory UN Organisations will receive original signed copies for their records. A copy will be sent by the Fund SCSO to the MPTF Office, and another original kept with the SCSO Office. The SCSO will electronically share the draft minutes of the Steering Committee meeting with the Steering Committee members within three working days of the meeting, with a 48-hour no objection timeframe. The SCSO will share with the MPTF office the signed JP/ Project Document by Steering Committee Co-Chairs and implementing UN Organisations, submission form, minutes of Steering Committee meeting, and the checklist for final submission to MPTF Office. 3.4 Transfer of Funds Based on the approval of the Steering Committee, and the signed JP/Project document by Steering Committee Co- Chairs and implementing UN Organisations, the MPTF Office shall transfer approved funds to the Participating UN Organisations who are signatory to the JP/Project after ensuring consistency with the applicable provisions of the Standard Administrative Arrangement (SAA) between donors and the MPTF Office, as the AA on behalf of the Participating UN Organisations as well as the funding framework. A copy of the fund transfer advice shall be provided to heads of the concerned Participating UN Organisations in Amman/Baghdad. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 8

21 4 Project/Programme Approvals and Achievements During the reporting period, from 1 January to 31 December 2012, an additional five projects/jps for a total of $29,853,909 were approved by the Iraq UNDAF Fund Steering Committee in its second and third meetings following technical review and vetting by Iraqi authorities, the PWGs and the Iraq UNDAF Fund Steering Committee. This brings the total number of approved projects/jps under the Fund to six, with a total budget of $30,613,793. Table 4-1 below highlights the approval and funding of the projects/jps under the Fund. Table /2012 Approved Projects/Programmes, Cumulative as of 31 March 2013 Project # Date of Transfer Project Title Approved Budget Total Transferred Agency P Aug 11 7 Mar 13 Development of National Framework for Integrated Drought Risk Management (DRM) in Iraq 479, , ,884 UNDP, UNESCO FAO, UNEP P Mar 12 Empowering CSOs in Iraq 2,221,818 1,042,435 UNDP P Mar 12 Family Protection, Support, Justice and Security for Survivors of Domestic and Gender Based Violence P Mar 12 Institutional Development of the Anti-Corruption Academy P May 12 Enhancing Transparent Participatory Governance and Human Rights 3,967,880 1,861,655 UNDP, UNICEF 2,727,273 1,279,585 UNDP 3,091,526 1,574,585 UNDP P Oct 12 Iraq Public Sector Modernisation (I-PSM) -Phase II 17,845,412 13,410,381 UNDP, UNICEF, UNESCO,UNESC WA, UNFPA, UN- Habitat, WHO, UNWOMEN TOTAL 30,613,793 19,928, Programme Achievements Priority Area: Environment P3-01: Development of National Framework for Integrated Drought Risk Management (DRM) in Iraq Project/Programme Objectives and Rationale The Development of National Framework for Integrated Drought Risk Management (DRM) in Iraq started in 2011 and is jointly implemented by UNDP and UNESCO in close consultation with other UN partners within the Environmental Management and Compliance UNDAF priority area. It is designed to support the GoI to lay the foundation for a national framework for Drought Risk Management, through the conduct of technical assessments of existing DRM capacities and vulnerabilities, and through consultations and consensus-building activities to build a common understanding of drought impacts and risk management measures. It will also expose the GoI to international good DRM practices. A national framework for integrated DRM in Iraq will enable the GoI and its partners to launch a coordinated multidisciplinary, multi-sectoral and multi-level response to drought. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 9

22 Programme Achievements and Results The JP, with support from the Iraq UNDAF Fund, contributed to improved knowledge and common understanding on DRM among the GoI and relevant stakeholders. Awareness among the involved institutions on drought definitions, its causes, impacts and linkages to cross cutting issues has been increased. Representatives of the involved institutions exchanged knowledge on regional practices in DRM, including the existing early warning systems. Targeted representatives were exposed to international best practices through participation in international workshops. A Steering Committee (SC) and Task Force (TF) were set up in 2012 with members from 18 institutions with active roles in DRM. With support from the JP, the current practices on DRM in Iraq have been documented (current polices, laws and programmes) and validated among key stakeholders; the mapping of institutions with active roles in DRM has been started; and a capacity assessment of the institutions and equipment has been carried out. A consensus on the definition of drought was reached through continuous discussions between the Steering Committee and Task Force. Drought is defined as a temporary climatic phenomenon caused by low precipitation in certain time period (season or more); as well as shortage in trans-boundary water inflow that leads to insufficient total water requirements for human, economic and environmental activities. A consensus building and awareness workshop on drought was held in Beirut in March 2012 and was followed by a SC and TF meeting. The workshop was implemented in cooperation with UNDP, UNESCO, Economic and Social Commission for Western Asia (ESCWA), FAO, International Center for Agricultural Research in the Dry Areas (ICARDA) and the participating Iraqi institutions. The workshop increased the awareness of Iraqi officials on drought definitions, its causes, impacts and linkages, cross cutting relevant issues along with existing early warning systems. The workshop also presented regional centers experience in similar conditions. Following the experiences gained, an initial DRM framework was formulated during the Beirut workshop. By the end of 2012, a no cost extension of the JP was approved until the 31 December The scope work of the existing DRM programme was expanded to address sand and dust storms, due to the strong linkages between drought, desertification and dust storms and the need for coherent and integrated approaches to cost-effectively ensure speedy delivery of support activities. Drawing on the comparative advantages of the UN Agencies, Funds and Programmes, the Environment Priority Working Group invited FAO and UNEP to provide the necessary technical inputs to the dust storms component of the DRM programme. Data collection is currently under way for evaluating and analysing the impact of the drought on selected sectors including, but not limited to: water supply quantity and quality, ground water resources, vegetation coverage, health, hydropower generation, industries, tourism, employment, migration, emergency response and other issues. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 10

23 4.1.2 Priority Area: Governance P1-01: Empowering CSOs in Iraq Project/Programme Objectives and Rationale The Empowering CSOs in Iraq project, with implementation assisted by UNDP, supports CSOs to effectively monitor the GoI s compliance with transparent governance and to advocate for and hold the Government accountable in the promotion of adequate service delivery, anti-corruption, and human and civil rights procedures. Through encouraging CSOs to form consortia, the project is transferring know-how whilst working Grant Guidelines Workshop: UNDP session for NGOs grantees to consult Guidelines for the grants hosted by Parliament on concrete issues. The project, initiated in 2012, is contributing to opening up permanent and sustainable channels between CSOs and Government to interface and advocate for the voices of civil society to be heard and taken into account in relation to public policymaking. The project is composed of two separate components. The UNDP component is funded under the Iraq UNDAF Trust Fund and is covered in this report. The UNOPS component is bilaterally funded by DANIDA. Programme Achievements and Results With support from the Iraq UNDAF Fund, initial steps have been taken towards enhanced capacities of CSOs to promote citizen oversight mechanisms with more inclusive and participatory processes, and an enhanced dialogue between parliament and civil society. The CSOs are being capacitated to become more professional and credible actors that can work alongside decision makers. Through regular contact with CSOs, the CSO Parliament Committee is progressively considering the added value of a national dialogue alongside CSOs as legitimate voices. This enhanced dialogue process is serving to improve the information base for parliamentary decisions, influencing them in the direction of being more responsive to actual people s demands. At the same time, CSOs are developing linkages with decision makers that will help them monitor governance and convey important matters in a more knowledgeable way to their constituents. UNDP has developed an innovative grant model to support Iraqi CSOs with a two-fold approach combining grants and capacity development. Following participatory processes, CSO Grant Guidelines have been developed with the support from the project. The participatory and consultative approach to establishing this grant mechanism has been appreciated by Iraqi counterparts as the first of its kind. Grants will be provided in 2013 to local CSO consortia for projects in three thematic areas: Promotion of adequate service delivery; Anti-corruption; Human and civil rights. The projects will be implemented by the CSO consortia for a maximum duration of one year and US $50,000 to 150,000. It was decided to focus on the capacities of local CSOs only, without the involvement of international NGOs in the CSO consortia. A total of 100 local CSOs have engaged in the grant application process either as lead applicants or members of a CSO consortium. A strong emphasis was put on gender focused projects by allocating 30 percent of the grant fund for this purpose. After a thorough and transparent selection process, 15 CSO consortia (with a total membership of 53 CSOs) have been retained for the final selection round that will take place early Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 11

24 2013. The geographical coverage is equally even with interventions proposed in all the governorates of Iraq. A capacity assessment exercise that will lead to the development of capacity profiles for each of the 15 candidate CSO consortia has been initiated. These CSOs have directly benefitted from capacity development assistance with expert support and coaching on project proposal development. The linkages, understanding and engagement promoted through the project for closer relations between civil society and the CSO committee of the Council of Representatives (CoR) is creating more opportunities for inclusive decision making. It is expected that government institutions will be more responsive to engaging and partnering with civil society as a result. The UNDP grant model is being favoured by local parliamentary counterparts for the design of a potential Iraqi budget CSO state fund. Concrete impact in these three thematic areas will be observed in 2013 with the implementation of the CSO projects looking at enhanced oversight mechanisms to monitor the Government s performance. P1-02: Family Protection, Support, Justice and Security Programme Programme Objectives and Rationale A survey conducted by OXFAM International in 2010, in collaboration with stakeholders, revealed that approximately 60 percent of women in the sample of 1,700 indicated that safety and security continued to be their main concern and 55 percent of them stated that they had been a victim of violence. A Multiple Indicator Cluster Survey 4 (MICS 4) on the situation of children in Iraq, supported by UNICEF in collaboration with key partners has recently been conducted. It shows that, among other things, 80 percent (9.6 million) of children aged 2-14 experience violent discipline (i.e. slapping, hitting, etc.), and one in three of them (3.3 million) have experience extreme physical violence as a discipline method. Moreover, one in five young girls between the ages of is currently married. The Family Protection, Support, Justice and Security Programme, with implementation assisted by UNDP and UNICEF, were initiated in The JP supports the GoI s efforts to ensure that victims of domestic and gender based violence are offered refuge, reintegration and access to justice and safe guard the safety of children. It aims to enhance the capacity of formal and informal institutions to establish family protection systems, facilitate law enforcement and access to justice for the victims of violence and provides mechanisms for empowerment and victim s reintegration. The JP builds upon UNDP's and UNICEF's vast experience and previous programmes in supporting Rule of Law, justice sector programmes, and child protection, thereby utilising the two agencies' comparative advantages. Synergies and cooperation with other UN Country Team agencies is further ensured, based on their respective mandates. Programme Achievements and Results The Programme, with support from the Iraq UNDAF Fund, contributed to policy and legislative reform for improved protection and access to justice for victims of violence. The GoI and KRG gained legislative and policy support for improved family protection and law enforcement. The project significantly expanded its base in KRG, Baghdad and Basra and gained full capacity in terms of human resources which facilitated effective engagement with Iraqi partners and regular consultations with Government and civil society. A major achievement of this programme was the adoption of the Domestic Violence Bill (DVB) in KRG and the draft Domestic Violence Law in Baghdad with support from UNDP. The adoption of the DVB will encourage women and children to report their cases and improved the ability of the justice system to provide effective and efficient justice services. With the technical support of UNICEF, the Consultation Strategy for the Development of Iraq National Child Protection Policy was developed by representatives from the Child Welfare Commission (CWC) and the Child Rights Protection and Promotion Committee (CRPPC), entailing an analysis of the current environment, the Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 12

25 identification of stakeholders, and the tools to be used. The strategy was endorsed by the federal and regional Ministers of Labour and Social Affairs (MoLSA) in mid The development of Policy Option Papers that are under way will serve as a basis for the consultations with various stakeholders. A social worker degree programme was established at the University of Salahaddin in Erbil, following technical support from UNICEF. The first group of 23 students received a degree in 2012 and the potential for replication will be explored through an evaluation. The Programme, with support from the Iraq UNDAF Fund, contributed to enhance law enforcement response to combating Gender Based Violence (GBV) and supporting GBV survivors and victims of trafficking. The GoI and the KRG were assisted to establish the referral mechanism for the new Family Protection Directorates (FPD), police support units and CSOs. In Baghdad, 12 out of 16 Family Protection Units (FPU) were established and female police cadre appointed; now representing 11 percent of the FPUs' cadre. In the KRG all FPD located outside the police station are fully operational and 98 female police cadre were appointed. Intake forms were developed at federal and regional levels and will be used to inform the Standard Operating Procedures (SOPs) and to establish the National data-base. Senior Government officials, Governate Councils, CSO and other stakeholders were sensitised on the role of the FPUs. Capacity of relevant service providers to systematically address violence against women and children was strengthened through trainings conducted by trainers from FPD in Jordan. This allowed the stakeholders to gain experience from a culturally and socially similar context. More training is scheduled for Strategic Frameworks and action plans for the FPUs at federal level were developed, which will strengthen the provision of efficient services and ensure the reflection of funds in the national budget. The establishment of the FPU contributed to strengthening of reporting of and service provision to victims of domestic and GBV. During 2012, a total of 11,827 cases were received at the various FPUs out of which 2,176 cases were resolved at the FPUs, 6,074 cases were processed to the court for judicial actions and 3,577 cases are ongoing. Following the engagement with the Judiciary, the High Judicial Council appointed Judges in each Governorate for Domestic Violence (DV) cases. A total of 16 judges have been assigned to legally resolve cases referred by FPUs, and other cases of GBV at Federal level. At regional level in KRG, a judge in each Governorate is appointed to follow up onto GBV and DV cases. To ensure that capacity is strengthened, UNDP secured the approval and commitment of the Judicial Training Institute to build the capacity of the selected judges on GBV and DV. It is anticipated that the training programme will commence early next year. During the reporting period, UNDP facilitated building capacities on GBV and DV for 41 students, who will graduate as judges and public prosecutors, 15 lawyers from Kurdistan Bar Association and 150 law students from Salah El Din University. The JP supported the establishment of three legal aid help desks specialised in GBV and DV, with Terms of References (ToR) approved by the Judiciary and the Bar Association in KRG. In close collaboration with key national entities, the helpdesks provide free legal assistance and also engage with academic institutions to promote research. From May to December 2012, a total of 1060 free legal consultation were carried out for 663 female clients and 397 male clients. The help desk also assisted with a total of 186 free legal representations for 160 female clients and 26 male clients. In the Kurdistan region, with support from UNICEF, 54 key stakeholders were trained, including police officers, MoLSA social workers, NGOs staff among others to enhance their capacity and skills in managing and responding to juvenile cases including victims of sexual violence and domestic violence. The referral system is being established among lawyers, social workers and juvenile police officers, which have resulted in the diversion of children in contact with the law. Charges against 49 children (15 girls and 35 boys), mainly for robbery, have been dropped at the police station. A total of 526 people including children in detention centres and schools gained knowledge on community Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 13

26 policing in the Kurdistan region and as a result are better aware of how the police should treat juveniles. To mainstream child rights issues in the formal curriculum, representatives from the College of Police together with UNICEF, developed a National Plan of Action for Iraq, aimed at incorporating a module on child rights into the current college training curriculum. Legal assistance was further provided with support from the Programme to a total of 315 children out of which 14 cases were related to GBV. To allow for evidence based planning, the Monitoring and Reporting Mechanism (MRM) network on the grave violations committed against children in the context of the armed conflict was enlarged, and the scope and quality of information gathered reinforced. New focal points were trained to understand the applicable international laws and standards and the MRM in Iraq, enabling them to report on violations, actively seek information and refer cases as appropriate. As co-chair of the MRM Interagency Task Force, UNICEF coordinated the information collection, maintained the central database and provided bi-monthly statistical analysis on the information collected, which were used to produce bi-monthly reports on the grave violations of children rights, shared with the UN Security Council Working Group on Children in Armed Conflict. In 2012, 355 violations were reported to the MRM Interagency Task Force, including killing and maiming of more than 300 children. The JP contributed to strengthening national institutions to undertake social and economic empowerment and protection of GBV survivors. The Anti-Trafficking Law stipulates the establishments of shelter for victims of trafficking. UNDP supported the development of the Shelter policy in the Kurdistan Region, which is expected to be adopted in At the Federal level, key Ministries and the Office of the Prime Minister were involved in the dialogue on the development of a shelter policy, which will define the GoI s commitment to establish shelters for GBV and DV victims. It is expected that the draft policy will be used as a baseline and working paper to develop federal policy on shelter. P1-03: Institutional Development of the Anti-Corruption Academy Programme Objectives and Rationale In March 2008, the GoI became a signatory to the United Nations Convention against Corruption (UNCAC) as part of its effort to minimise opportunities for corruption and improve the delivery of services. The anti-corruption structure in Iraq has been recently put in place thus there is a need to strengthen the anti-corruption institutions, and to streamline the laws and regulations that govern the mandates, powers, and interactions between the various anticorruption agencies in relation to the five UNCAC areas: prevention; criminalization and law enforcement; international cooperation; asset recovery; and technical assistance and information exchange. Iraq has endorsed an Anti-Corruption Strategy which links with the current Iraq National Development Plan with the Commission of Integrity as the focal point for the United Nations Convention against Corruption (UNCAC). In December 2010, the Commission of Integrity developed as a department an Anti-Corruption Academy to develop skills sets and has expanded the structure to include Treaties and Conventions, Planning, Performance Evaluation under the Directorate of Scientific and Technical Affairs. At a recent Regional Forum on International Forum on Integrity and Anti-Corruption convened from 8 to 9 May 2013 one of the recommendations of the eleven countries represented was praise for the role of the Commission of Integrity for the establishment of the Anti-Corruption Academy, which is considered as a unique model in the region and can provide technical support for other anticorruption organizations in the region. The purpose of the Institutional Development of the Anti-Corruption Academy project, initiated in 2012, to contribute to strengthening the Iraq anti-corruption agencies to be knowledgeable, skillful, motivated and committed and to carry out their functions effectively. UNDP primary partner is the Commission of Integrity and Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 14

27 its directorate, the Anti-Corruption Academy. The project closely collaborates with the established Technical Committee. Programme Achievements and Results A Technical Committee was established in mid-2012 consisting of the anti-corruption oversight authorities and the Dean of Colleges and universities in Baghdad. In collaboration with the Technical Committee and other partners, a comprehensive needs assessment was carried out to determine the Academy s administrative operational, financial and sustainable requirements. Initial staff was appointed by the Commission of Integrity to fill some posts, based on civil servant employment procedures. Working sessions brought together the Commission of Integrity and other national focal points in Anti-Corruption who debated and discussed the Anti-Corruption Academy s organisation structure. Following the consultations, a second organogram was approved. Working sessions were further conducted to determine each faculty and centre s requirement and staffing levels. Faculties have started to be identified within the organogram. P1-04 Enhancing Transparent Participatory Governance and Human Rights Project/Programme Objectives and Rationale The Project Enhancing Transparent Participatory Governance and Human Rights was initiated in mid-2012 with implementation assisted by UNDP. It aims to promote transparent participatory governance and strengthen human rights in Iraq. The framework has four outputs, focusing on strengthening human rights and transparency through participatory governance mechanisms. The first output is to support the mandate and organisational structure of the IHCHR, including the establishment of sub-national commissions. The second output is to provide long-term institutional development of the Human Rights Commission and its outreach capabilities through participatory governance mechanisms. The third output is to combat corruption through the promotion of accountability, integrity and transparency at all levels of government including support for the establishment of a new independent Kurdistan Region Commission of Integrity. The fourth output is to utilise CSOs to promote participatory and transparent governance, which includes financial and technical support to CSOs to enhance their engagement with parliament and a nationwide campaign on the National Anti-Corruption Strategy. Programme Achievements and Results With support from the Project, initial steps were taken to enhance the capacity of IHCHR to enable the Commissioners to perform their duties, while working very closely with the Parliament and civil society to support a meaningful and effective engagement between all actors. The result of a workshop led by key international experts was the establishment of the IHCHR s mission, vision and organisational structure. A second workshop was organised in Egypt, targeting 14 Human Rights Commissioners, and the Council of Representatives of Iraq Human Rights Committee and KRG Human Rights Board members which resulted in the adoption of a modality for the cooperation on human rights issues. Technical advisory and capacity building support by the project facilitated an increased understanding of international standards and operating frameworks of National Human Rights Institutions (NHRIs) - including the Paris Principles accreditation principles and frameworks, international best practices, and the specific roles of NHRIs in protecting, promoting, and mainstreaming human rights. To ensure the sustainability of the work of the IHCHR, the project provided support to develop the budget for the year 2012 and This resulted in an increased annual budget allocation by the Iraqi Council of Representatives (Parliament), from US$ 4 million in 2012 to a US$ 26 million in Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 15

28 The JP also assisted to build structures and procedures necessary to promote and undertake governance processes in an accountable and transparent manner. The programme aims to combat corruption through the promotion of accountability, integrity and transparency at all levels of government. Following senior level meetings supported by the Project, a KRG Government Council of Ministers decision was taken, which was furthered by the Prime Minister s Office to define the requirements for the establishment of a new Kurdistan Region Commission of Integrity. A Study of comparative analysis was completed on the Kurdistan Regional Government Commission of Integrity Law and two laws at the Federal level. Recommendations and ways forward were proposed including bilaws, internal policies and structure. Full scale discussions with relevant institutions took place during the first quarter of 2013 regarding the establishment of a Kurdistan Region Commission of Integrity. Consultation and planning continued regarding the Kurdistan Board of Supreme Audit and a decision was taken that the most closely aligned good practice is the National Audit Office of the United Kingdom, with needs assessment scheduled to initiate early The Anti-Corruption Campaign was supported and materials finalised with plans in place for 96 awareness workshops as part of an Anti-Corruption campaign to take place in all 15 governorates outside the Kurdistan Region. Discussions initiated on the development of investigative journalism curriculum with the University of Baghdad, to facilitate the role and contribution of the media to democratic governance. Initial steps towards reinforcing participatory governance through an increased involvement of civil society with authorities related to Human Rights and oversight mechanisms have taken place. Mechanisms for engagement through small grants with CSOs interested in human rights and oversight mechanism interventions have been designed in consultation with key stakeholders. Engagement tools and methodologies are being field-tested and capacities of CSOs are being assessed for an effective implementation of the civil society component of this project. Initial steps towards a formalisation of the interaction between CSOs and parliamentary committees (CSO Committee and Human Rights Committee) as well as with the IHCHR have taken place successfully. The project has built a knowledge base for strengthening the involvement of CSOs in human rights and oversight mechanisms initiatives. Processes for more accountable, transparent and participatory approaches by parliamentary Committees and the IHCHR have also been launched. The programme has drawn on synergies between a complementary projects assisted by UNDP on Civil Society Empowerment, described under P1-01. P1-05: Iraq Public Sector Modernisation (I-PSM) - Phase II In the last Quarter of 2012, a total of $17,845,412 was approved for a second phase of the Iraq Public Sector Modernisation JP. The first tranche of $13,410,381 was transferred to eight Participating Organisations including UNDP, UNICEF, UNESCO, UNESCWA, UNFPA, UN-Habitat, UNWOMEN and WHO. The JP aims to strengthen the regulatory and institutional framework and processes of national and local governance to enhance service delivery. The JP has four themes: Developing policy and building machinery at the Centre of government for managing I-PSM; Supporting system-wide reform for development management, gender Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 16

29 mainstreaming, e-governance and national statistics; Piloting reform in the three key sectors of health, education and water and sanitation (Watsan); and Supporting decentralised service delivery and local governance initiatives. The JP has four upstream and downstream outputs: Enhanced capacity to undertake public sector modernization at national, regional and governorate levels; Improved public administration systems at national and sub-national levels; Implementing reform and modernization plans in Education, Health and WATSAN sectors; Sub-national governance and decentralized service delivery systems strengthened; and Enhanced participatory processes. Phase II of the I-PSM builds on lessons learned and recommendations emerging from the implementation and external evaluation of the Phase. These included: maintaining political commitment to PSM, management and coordination of support to the I-PSM initiative both within the UN and more broadly in the donor community. 4.2 Programmes/Projects Pipeline During the reporting period, a concept note for a JP under the UNDAF Inclusive Economic Growth Working Group was prepared by ILO and WFP. The proposed programme Support for Adopting and Establishing a National Social Protection Floor in Iraq will be implemented by ILO and WFP for a total budget of $306,667. The concept note was reviewed and endorsed by the Inclusive Economic Growth Working Group in February 2013 and it is expected that a full project document will ready for the Steering Committee review and approval by the second quarter of Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 17

30 5 Overall Fund Achievements and Challenges 5.1 Achievements The primary achievement in 2012 was the operationalising of the Iraq UNDAF Fund in support of the implementation of the first Iraq UNDAF. The UNDAF Fund serves as the primary UN-pooled fund instrument to support the mobilization of resources to fill gaps in the UNDAF Common Budgetary Framework, ensuring that priority programmes can access required resources. The RC, SCSO and MPTF Office, together with the GoI PMAC and UNCT, coordinated their efforts and took the required steps to operationalise the Fund and sustain the momentum from the UNDG Iraq Trust Fund. As a result of well-planned and coordinated efforts over the course of , the IRFFI Donor Committee and the UNDG ITF Steering Committee, in collaboration with the GoI, facilitated a process that led to the establishment and resourcing of the Fund. The outcome has been the successful transition from the firstgeneration recovery fund to a more long-term, sustainable focused development MDTF. The Steering Committee approved allocations of un-earmarked contributions and held several meetings and virtual review sessions to approve programming in a timely manner. The UNCT had established a programme pipeline to ensure the timely development of new programmes for implementation. As of 31 December 2012, $19,168,641 had been transferred to the Governance and Human Rights Priority Areas in support of 5 projects/programmes, including assistance for the Phase II of the I-PSM JP. 5.2 Challenges The current political crisis could lead to increased insecurity and political instability in 2013 which may compromise the independence of key stakeholders, divert attention from programme implementation and pose a risk to the safe undertaking of programme implementation in the governorates. Therefore, it is crucial that risk mitigation strategies are in place. The different projects/programmes further experienced a number of challenges during the course of implementation including, limited ability to move in Iraq due to security restrictions which made regularly visit to sites difficult and posed a major obstacle in reporting and verifying incidents on the grave violation of children s rights. The lack of an accurate and comprehensive database of CSOs remained a challenge and efforts will be undertaken in partnerships with the Government and NGOs to build a national CSO database to address this challenge. There was a further challenge to find NGOs with professional, organizational and technical skills to provide quality services in their area of expertise. The availability of predictable, multi-year resources is not easily replicated in the current Iraqi context where many donors have closed their missions in Iraq and development financing or have or shifted to bilateral funding. As a result, the 18 Participating UN Organisations have had to address resource mobilisation as a top priority. To fill the gap in traditional donor contributions, the GoI and the KRG entered negotiations with the Iraq UNCT to pursue the development of policy and procedures to facilitate co-financing, including the option of utilising the Iraq UNDAF Fund as one of the financing mechanisms. However, after two years of discussions, but this option has not materialized as a reliable source of funding support to the UN system. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 18

31 6 Financial Performance 6.1 Financial Overview Table 6-1 Financial Overview, Cumulative as of 31 December 2012 Annual 2011 Annual 2012 Cumulative Sources of Funds Gross Contributions 8,747,615 22,555,580 31,303,195 Fund Earned Interest and Investment Income 33,519 31,280 64,799 Interest Income received from Participating Organisations Refunds by Administrative Agent to Contributors Fund balance transferred to another MPTF Other Revenues Total: Sources of Funds 8,781,134 22,586,860 31,367,994 Use of Funds Transfer to Participating Organisations 479,884 19,168,641 19,648,525 Refunds received from Participating Organisations Net Funded Amount to Participating Organisations 479,884 19,168,641 19,648,525 Administrative Agent Fees 87, , ,032 Direct Costs: (Steering Committee, Secretariat...etc.) - 421, ,993 Bank Charges Other Expenditures Total: Uses of Funds 567,588 19,816,542 20,384,130 Change in Fund cash balance with Administrative Agent 8,213,546 2,770,318 10,983,863 Opening Fund balance (1 January) - 8,213,546 - Closing Fund balance (31 December) 8,213,546 10,983,863 10,983,863 Net Funded Amount to Participating Organisations 479,884 19,168,641 19,648,525 Participating Organizations` Expenditure 5,599 1,583,029 1,588,628 Balance of Funds with Participating Organisations 18,059,897 Table 6-1 above provides an overview of the entire Iraq UNDAF Fund financial portfolio by providing the source, use and balance of funds. During the reporting period, total contributions of $22,586,860 were deposited into the Iraq UNDAF Fund account. A total of $19,168,641 was transferred to eight Participating Organisations in During the reporting period, the fund-earned interest amounted to $31,280, with a cumulative total fund earned interest of $64,799. A detailed explanation of interest income is provided in Section 6.3. The balance of funds available with AA as of 31 December 2012 was $10,983,863, of which $280,000 was approved and transferred for projects in the first quarter The cumulative balance of funds remaining with the Participating Organisations Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 19

32 to cover expenditures of approved programmes as of 31 December was $18,059,897.In 2012, the AA fee of $225,556 (one percent of total funds deposited) was charged on the contributions received, with a cumulative total AA fee of $313,032 and direct costs of $421,993 were approved by the Steering Committee. 6.2 Contributions Total deposits of $22,555,580 were received in 2012 including additional contributions from Demark and Sweden as well as transfers from the UNDG Iraq Trust Fund that represent pooled contributions from 23 donors. The top four contributors to the Iraq UNDAF Fund are Japan (11,079,664), Denmark ($7,115,775), Sweden ($3,057,518) and Spain ($2,860,026), as shown in Table 6-2 and 6-3 below. Table 6-2 Total Donor Deposits, as of 31 December 2012 Contributors Prior Years as of 31 Dec 2011 Current Year Jan-Dec 2012 Total AUSTRALIA 110, , ,977 BELGIUM 4,626 35,923 40,549 CANADA (CIDA) 223,359 1,734,574 1,957,933 DENMARK 4,269,392 2,846,384 7,115,775 FINLAND 26, , ,373 GREECE 12,711 98, ,420 ICELAND 1,751 13,597 15,348 INDIA 17, , ,479 IRELAND 4,295 33,351 37,645 ITALY 137,380 1,066,872 1,204,252 JAPAN 1,263,957 9,815,706 11,079,664 KUWAIT 17, , ,479 LUXEMBOURG 8,120 63,061 71,181 NETHERLANDS 23, , ,570 NEW ZEALAND 11,783 91, ,287 NORWAY 24, , ,156 QATAR 17, , ,479 REPUBLIC of KOREA 73, , ,612 SPAIN 326,269 2,533,757 2,860,026 SWEDEN (SIDA) 1,638,312 1,419,207 3,057,518 The Scottish Government 484, ,731 TURKEY 31, , ,262 UNITED STATES OF AMERCIAN (USAID) 17, , ,479 Grand Total 8,747,615 22,555,580 31,303,195 Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 20

33 The IRFFI Donor Committee took a decision to transfer all earned interest and unspent (refund) balances from the UNDG ITF as of 30 June 2010, and subsequent accrual, to the Iraq UNDAF Fund as un-earmarked funds with the exception of the EC, Germany and the United Kingdom, who requested their portion of such funds be returned. The total of $1,636,350 of interest and refunds on unspent balances form the UNDG ITF was reported in 2012 of which $841,597 allocated to the Iraq UNDAF Fund and $818,258 to the EC, Germany and the United Kingdom, collectively. Additionally in 2012, the unspent balance for the Iraq Public Sector Modernization programme, totalling $35,048,937, was apportioned with $18,026,147 transferred to the Iraq UNDAF Fund, $258,018 returned to Germany and $1,433,082 to the United Kingdom. The remaining $15,331,690 will be returned to the EC in the second quarter Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 21

34 Table 6-3 Apportionment of Interest and Unspent (Refund) Balances in proportion to Total Donor Deposits, as of 31 December 2012 Refunds of Interest and Unspent Funding from Agencies apportioned per % of total contribution Prior Years as of 31 Dec 2011 Current Year Jan - Dec 2012 Donor Total Donor Deposits % of Total Deposits Total Interest and Unspent Balances refunded by end 2012 Unspent project ITF/C9-29 Balances refunded Unspent Interest Balances Unspent Refunds on Balances from Closing of Projects Total Interest and Unspent Balances to be refunded Total Interest and Unspent Balances Australia 31,664, % 154, ,009 22,610 15,534 38,144 1,010,121 Belgium 1,321, % 6,465 34, ,591 42,141 Canada (CIDA) 63,785, % 312,165 1,645,768 45,545 31,292 76,837 2,034,770 Denmark 12,410, % 60, ,201 8,861 6,088 14, ,886 European Union 594,210, % 2,908,079 15,331, , , ,800 18,955,569 Finland 7,700, % 37, ,687 5,498 3,778 9, ,649 Germany 10,000, % 48, ,018 7,140 4,906 12, ,004 Greece 3,629, % 17,764 93,656 2,592 1,781 4, ,793 Iceland 500, % 2,447 12, ,950 India 5,000, % 24, ,009 3,570 2,453 6, ,502 Ireland 1,226, % 6,002 31, ,477 39,123 Italy 39,231, % 192,001 1,012,251 28,013 19,247 47,260 1,251,512 Japan 360,950, % 1,766,499 9,313, , , ,809 11,514,473 Kuwait 5,000, % 24, ,009 3,570 2,453 6, ,502 Luxembourg 2,318, % 11,349 59,832 1,656 1,138 2,793 73,974 Netherlands 6,697, % 32, ,794 4,782 3,285 8, ,637 New Zealand 3,364, % 16,468 86,819 2,403 1,651 4, ,340 Norway 7,009, % 34, ,852 5,005 3,439 8, ,599 Qatar 5,000, % 24, ,009 3,570 2,453 6, ,502 Republic Of Korea 21,000, % 102, ,837 14,995 10,302 25, ,909 Spain 93,173, % 455,992 2,404,034 66,529 45, ,239 2,972,264 Sweden (SIDA) 13,656, % 66, ,363 9,751 6,700 16, ,649 Turkey 9,000, % 44, ,216 6,426 4,415 10, ,104 United Kingdom (DFID) 55,542, % 271,824 1,433,082 39,659 27,248 66,907 1,771,813 United States (USAID) 5,000, % 24, ,009 3,570 2,453 6, ,502 Grand Total 1,358,392, % 6,648,001 35,048, , ,407 1,636,350 43,333,288 Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 22

35 6.3 Earned Interest Table 6-4 Received Interest (Agency and Fund), as of 31 December 2012 Prior Years as of 31 Dec 2011 Current Year Jan-Dec 2012 TOTAL Fund-Earned Interest (Administrative Agent) 31,280 64,799 TOTAL Fund-Earned Interest 33,519 31,280 64,799 TOTAL Interest Income Received from PO - - TOTAL Interest Earned 31,280 64,799 Interest earned from Iraq UNDAF Fund donor contributions is reported from two sources. Fund-earned interest is the interest earned by the MPTF Office as the Administrative Agent on the balance of funds remaining in the Iraq UNDAF Fund bank account (maintained by UNDP/Treasury). Agency-earned interest is the amount earned by Participating UN Organisations on the undisbursed balance of Iraq UNDAF Fund funds that have been transferred to the Participating UN Organisation(s) for project implementation. Interest accrues at the Fund level until the Iraq UNDAF Fund SC approves a project or JP, at which time the approved funds are transferred to the Participating Organisation(s). As of 31 December 2012, the cumulative total of Fund-earned interest income amounted to $64,799. There was no Agency-level earned interest reported as of 31 December Transfer and Balance of Funds Table 6-5 Net Funded Amount by Priority Working Group, as of 31 March 2013 Net Funded Amount Priority Area TOTAL Approved Prior Years as of 31 Dec 2011 Current Year Jan-Dec 2012 TOTAL Number of Projects Governance and Human Rights 29,853,909-19,168,641 19,168,641 5 Inclusive Economic Growth Environment 759, , ,884 1 Essential Services Human Capital TOTAL 30,613, ,884 19,168,641 19,928,525 As of 31 December 2012, a total of $30,613,793 was approved of which $19,168,641 was transferred to the Governance and Human Rights Priority Area in support of five projects in 2012 as highlighted in Table 6-5 above. Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 23

36 Table 6-6 Net Funded Amounts by Participating Organisation, as of 31 March 2013 Net Funded Amount Participating Organisation Prior Years as of 31 Dec 2011 Current Year Jan-Dec 2012 TOTAL ESCWA 677, ,608 FAO - 140, ,000 UNDP 8,250,383-8,250,383 UNEP 140, ,000 UNESCO 1,763,010-1,763,010 UNFPA 1,204,598-1,204,598 UNHABITAT 2,078,947-2,078,947 UNICEF 2,846,746-2,846,746 UNWOMEN 1,081,932-1,081,932 WHO 1,745,301-1,745,301 TOTAL 19,648, ,000 19,928,525 Error! Reference source not found.-6 provide the breakdown of funding by Participating Organisation with a net funded amount of $19,648,525 to eight Participating Organisations as of 31 December In the first Quarter of 2013, two additional Participating Organisations, FAO and UNEP received funds of total $280,000. The fund transfers were based on the contributions to the Iraq UNDAF Fund from 23 donors including transfers from the UNDG Iraq Trust Fund Balance of Funds Available The balance of Funds Available with the AA was $10,983,863 (35 percent of total funding) as of 31 December Until such time that the MPTF Office is instructed by the SC to release funding for newly approved projects and/or subsequent tranches of funding on previously approved funding, it will be reflected in balance of funds with the AA. 6.5 Expenditure Reported by Participating Organisations As indicated in table 6-7 below, out of the total amount of $19,648,525 approved and transferred as of 31 December 2012, expenditure reported was only $1,588,628. This is largely attributed to the large transfers that took place in October Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 24

37 Table 6-7 Financial Delivery Rates by Participating Organisation, as of 31 December 2012 Participating Organisation Approved Amount Net Funded Amount Expenditure Delivery Rate Percentage ESCWA 677, , UNDP 8,250,383 8,250,383 1,295, UNESCO 1,763,010 1,763, , UNFPA 1,204,598 1,204, UNHABITAT 2,078,947 2,078, UNICEF 2,846,746 2,846,746 44, UNWOMEN 1,081,932 1,081,932 70, WHO 1,745,301 1,745, Grand Total 19,648,525 19,648,525 1,588, Project expenditures are incurred and monitored by each Participating Organization and are reported as per the agreed upon categories for harmonized inter-agency reporting. In 2006 the UN Development Group (UNDG) set six categories against which UN entities must report project expenditures. Effective 1 January 2012, the UN Chief Executive Board modified these categories as a result of IPSAS adoption to comprise eight categories. All expenditures reported up to 31 December 2011 are presented in the previous six categories, and all expenditures reported from 1 January 2012 are presented in the new eight categories. The old and new categories are noted below. Table 6-8 Total Expenditure by Category, as of 31 December 2012 Expenditure Category Prior Year as of 31-Dec-2011 Current Year Jan-Dec-2012 Total Percentage of Total Programme Cost Supplies, Commodities, Equipment and Transport (Old) Personnel (Old) 5,599-5, Training of Counterparts(Old) Contracts (Old) Other direct costs (Old) Second (2012) Annual Consolidated Progress Report on Activities Implemented under the Iraq UNDAF Fund 25