UNDG Fiduciary Management Oversight Group (FMOG) Terms of Reference 5 December 2014 I. Institutional context In 2007, the UN Development Group (UNDG), recognizing the growing importance of Multi- Donor Trust Funds as funding mechanisms, agreed on the establishment of a UNDG Multi- Donor Trust Fund Fiduciary Management Oversight Framework. The Framework envisages three levels of fiduciary management oversight, including: Steering Committee at country level, which directs and manages the MDTF in accordance with its Terms of Reference ; ASG Group on MDTFs (UNDG Advisory Group), which is activated in the event an agreement cannot be reached at the country level on the establishment of an MDTF, as well as addresses any policy and fiduciary management oversight issues of inter-agency nature when addressed by the MDTF Fiduciary Management Oversight Group. In accordance with the UNDG MDTF Fiduciary Management Oversight Framework, the functions of the UNDG Advisory Group for the establishment of MDTFs will include fiduciary oversight, and policy decisions and guidance of inter-agency nature ; and Fiduciary Management Oversight Group (FMOG), which is the first point of contact in HQs for fiduciary matters on MDTFs where the fiduciary and legal dimensions of the MDTF are discussed. It was also agreed that the Group will discuss any required departures from the standard Memorandum of Understandings, Letters of Agreement and Steering Committee Terms of Reference. In addition, it will be responsible for providing oversight to individual MDTFs on financial management, legal, and assurance issues of an inter-agency nature. II. Overall objective In accordance with the UNDG Multi-Donor Trust Fund Fiduciary Management Oversight Framework, the FMOG serves as the first point of contact in HQs for fiduciary matters on MDTFs. It provides oversight to individual MDTFs on financial management, legal, and assurance issues of an inter-agency nature and discusses any required departures from the standard MoU, LoA and SC TORs. III. Tasks and expected results In accordance with the above Framework and with a view of facilitating better functioning of joint funding mechanisms, the FMOG will cover the following functions: 1. Management review and oversight www.undg.org 1
Oversee the implementation of the fiduciary aspects of the UNDG policies on joint funding mechanisms 1, once established. Address cross-cutting inter-agency matters related to the implementation of the policies (individual agencies will be responsible to address other issues); Review or initiate any revisions to the standard fiduciary/legal elements of the common UNDG policies applied in joint funding mechanisms, including key principles and the relevant accountability framework; Review any deviations in the design of individual joint funding mechanisms; and review possible fiduciary risks for the UN system. Each such design will be required to follow certain basic common standards, but adjusted to reflect specific country situations and requirements. Make decisions with regard to proposed deviations and inform respective parties; In case of deviations from the established standard, review and decide upon all the legal documents related to the establishment and management of joint funding mechanisms; Periodically assess the effectiveness of the joint funding mechanisms oversight/ accountability structures, including in-country Steering Committees from the accountability, financial management and audit point of view. Support, where relevant, the development and implementation of QCPR monitoring instruments related to joint funding and fiduciary management. Oversight of the work of the Joint Funding Task Team. 2. Assurance 2 and Reporting Address cross-cutting inter-agency issues raised in the joint funding mechanisms evaluation reports, especially their financial/legal/audit aspects; Facilitate the implementation of the Framework for Joint Internal Audits of United Nations Joint Activities, for those joint activities that the FMOG oversees, e.g. MDTF Provide guidance to participating UN Organizations on common inter-agency audit issues raised in the summary audit reports and facilitate a coordinated resolution, with a view of Participating UN Organizations addressing cross-cutting inter-agency issues arising from audit findings; Review annual Administrative Agents (AAs) reports for MDTFs, provide advice and follow-up on issues raised by the AAs. Based on the reviewed reports, update the UNDG Advisory Group on issues reviewed and advice provided, as well as agreed follow-up actions. Strategic issues requiring the decision at a higher level will be referred to the UNDG Advisory Group. 1 For the purposes of these TORs joint funding covers (i) pass-through funding modality, including MDTFs, One UN Funds, and Joint Programmes, and (ii) pooled funding modality used for Joint Programmes. 2 Assurance is an oversight and monitoring function that ensures that the milestones are completed and the resources are used in accordance with established rules and procedures. www.undg.org 2
3. Policy Oversee the development of policies, including to ensure that they do not contradict with the existing agreements, and bring policy decisions to the UNDG; Lead in UNDG discussions with the key donor partners to joint funding mechanisms, as well as ensure follow-up on agreements reached with the donors; On a demand basis, review policy issues related to the use of the UNDG standard agreement on UN agency to UN agency bilateral transfers for programmatic purposes 3. IV. Expected duration and timeline The FMOG is a standing body in the UNDG architecture. V. Linkages with other (UN) working mechanisms, processes, or institutions The Joint Funding Task Team reports to the FMOG. FMOG coordinates with the other (UN) working mechanisms and external partners, such as the Programme Working Group, among others, where there are linkages. VI. Working methods The FMOG adheres to the general working methods of the UNDG as standard and agreed for all UNDG Working Mechanisms (refer to document: UNDG Functioning and Working Arrangements, Annex 1: UNDG Working Mechanisms Working Methods). The FMOG will meet on demand basis, but minimum three times a year, including for (i) endorsement of work plan in the area of joint funding, (ii) review of AA reports, and (iii) endorsement of annual report to be submitted to the UNDG through the Business Operations Working Group. Queries and requests for guidance could be addressed to the FMOG by Steering Committees of pass-through funding mechanisms, Administrative Agents and Participating UN Organizations, including through the common Joint Funding account (FMOG.support@undg.org) which is monitored by DOCO. Proposed deviations must be raised by Participating UN Organizations and Administrative Agents to the FMOG for advice with not less than ten working days for consideration. These should be cleared by the FMOG prior to the standard document being circulated for signature. In case of proposed deviations from the standard UNDG agreed instruments, the FMOG will consider possible solutions and communicate to respective organizations. Unless a request for review is submitted to the UNDG Advisory Group, all FMOG decisions will be obligatory to Participating UN Organizations and Administrative Agents, and will be clearly communicated to the respective party and made available for all the other parties through UNDG website. 3 With reference to the standard agreement on UN agency to UN agency transfers for programmatic activities, FMOG will be responsible for reviewing and discussing policy issues, however will not have oversight functions in relation to any deviations to the standard. www.undg.org 3
In case there is a disagreement with the FMOG recommendation, the respective UN Country Team, or Participating UN Organization, or Administrative Agent may refer the matter to the UNDG Advisory Group. The UNDG Advisory Group will consider the recommendation, and communicate its decision. Until the Advisory Group renders an opinion or guidance, no action should be taken by the stakeholders on the matter in question. As the UNDG Fiduciary Management Oversight Group is a decision-making inter-agency group, decisions will be reached by consensus. A quorum of the FMOG will consist of 55% of its members (or alternative members when the main member is absent). FMOG decisions will be properly recorded, shared with the respective organization and included in the compendium of FMOG decisions. VII. Membership All UNDG member organizations may be members. Participation in the Working Groups is at senior decision-making levels. Members must have knowledge and experience in FMOG's area of work. Terms of Reference for supporting Task Teams A: Joint Funding Task Team I. Institutional context In the area of Joint Funding, the work focuses on the fulfillment of UNDG responsibilities for oversight of Multi-Donor Trust Funds as required by the UNDG Management and Accountability Framework. In line with the new UNDG Working Mechanisms, the Fiduciary Management Oversight Group remains the first inter-agency reference at HQ level on all fiduciary/ legal/ assurance issues regarding joint funding mechanisms 4, particularly focusing on ensuring adherence to the standard UNDG-agreed documents and making decisions on any deviations in the design of individual joint funding mechanisms, as well as assessing possible fiduciary risks for the UN system. In addition to the oversight functions provided by the FMOG and considering the need to ensure that policy support and technical guidance on joint funding issues, including but not limited to MDTFs is provided to countries, a standing Joint Funding Task Team is being maintained (formerly called the Joint Funding Sub-Committee). 4 For the purposes of these TORs joint funding covers (i) pass-through funding modality, including MDTFs, One UN Funds, and Joint Programmes, (ii) pooled funding modality used for Joint Programmes, (iii) parallel funding modality used for Joint Programmes, and (iv) UN agency to UN agency transfers for programmatic activities. www.undg.org 4
II. Overall objective The Joint Funding Task Team will focus on development of policies, guidance and support in the area of Joint Funding III. Tasks and expected results The Joint Funding Task Team will cover the following functions: 1. Development of policies on UNDG joint funding mechanisms and instruments: Develop policies and provide recommendations in various areas of joint funding, based on the demand from UNCTs, policy decisions by the UNDG and following up on TCPR/QCPR resolutions. 2. Overall guidance and communication on policies in the UNDG joint funding area, funding mechanisms and instruments to UN Country Teams: Based on the agreed policies, develop and update guidance on country level and global funds and funding mechanisms; Ensure that the latest policy decisions and developed guidance are relayed to the country offices for implementation; Prepare communication packages and develop coherent and consistent messages on policies on funding mechanisms and instruments; Develop training materials for integration in the existing UNDAF and other training sessions; act as resource people when required. 3. Support and provide technical advice to country offices and agencies HQs in establishment of UNDG joint funding mechanisms (including through FMOG.support@undg.org): Provide timely, coordinated, quality support to the country offices and agencies HQs in line with agreed UNDG policies, instruments and guidance; Provide guidance as required on the fund management arrangements and use of standard documentation for the establishment of joint funding mechanisms at country and global level; Review and analyze relevant best practices, make recommendations for better functioning of MDTFs and other joint funding mechanisms. IV. Expected duration and timeline The JFTT is a standing Task Team. www.undg.org 5
V. Linkages with other (UN) working mechanisms, processes, or institutions The Joint Funding Task Team reports and is accountable to the Fiduciary Management Oversight Group. The policy substantive work will be presented for discussion and endorsement by the FMOG, which would present any policy decisions for endorsement by the UNDG. JFTT may coordinate with the Programme Working Group, in areas where there are linkages between programming and funding. VI. Working methods The JFTT adheres to the general working methods of the UNDG as standard and agreed for all UNDG Working Mechanisms (refer to document: UNDG Functioning and Working Arrangements, Annex 1: UNDG Working Mechanisms Working Methods). The Joint Funding Task Team will agree annually on its results-based work plan, which derives from the UNDG work plan; it will seek endorsement and approval of the FMOG on the work plan at least once a year and report back on results at least twice a year. The annual work plan will clearly stipulate the baselines, indicators, timeframes, lead, evidence of results achieved and status for each deliverable. VII. Membership The Joint Funding Task Team will comprise of technical level specialists on joint funding from Funds, Programmes and Specialized Agencies. The membership is open to all UNDG members willing to engage into the work of the Task Team. The Joint Funding Task Team will be led by co-chairs, rotating on an annual basis. If and when required by the Joint Funding Task Team and requested by the Chairs of the JFTT, separate initiatives can be led by members that are not Chairs of the Task Team. The respective results will be presented to the Joint Funding Task Team. Annex I: Membership UNDG Fiduciary Management Oversight Group No. Organization Representative Email Email CC 1 FAO 2 IFAD 3 ILO 4 ITU 5 OHCHR 6 UNAIDS 7 UNCTAD www.undg.org 6
8 UNDESA 9 UNDP 10 UNEP 11 UNESCO 12 UNFPA 13 UN-HABITAT 14 UNHCR 15 UNICEF 16 UNIDO 17 UNODC 18 UNOPS 19 UN Reg. Com. 20 UN Women 21 UNWTO 22 WFP 23 WHO 24 WMO Secretariat: DOCO Invitees: UNRIAS www.undg.org 7