Saturday, 13 October 2012

Multi-Partner Trust Fund Office - Fund administration in real time

The UN system is concentrating efforts to enhance coherence and efficiency at the country level and to increase joint UN activities. In this context, the United Nations Development Programme (UNDP) Multi-Partner Trust Fund Office (MPTF Office), provides dedicated fund administration services to the UN system and national governments. UNDP is often called upon to play the role of Administrative Agent (AA) through its MPTF Office for MPTFs and Joint Programmes (JPs) that use the pass-through fund management model. This model was established by the UN system, national authorities and contributors in the context of humanitarian, transition, reconstruction and development programmes.

The increasing use of MPTFs is an application of the Aid Effectiveness Agenda and the UN Reform initiative "Delivering as One". The mechanism also responds to the need to provide flexible, coordinated and predictable funding to support the achievement of national and global priorities such as the MDGs. In their governance structure and operations, MPTFs are consistent with several principles of the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, including national ownership and alignment with national priorities; harmonization and coordination; effective and inclusive partnerships; and achieving development results and accounting for them. MPTFs and JPs usually use the pass-through fund-management modality. Under this arrangement, Participating UN Organizations or national governments appoint the UNDP MPTF Office as an AA through a Memorandum of Understanding (MOU) as their administrative interface with partners/contributors.

 It subsequently signs a Standard Administrative Arrangement with contibutors, and receives, administers and transfers contributed funds to Participating Organizations (POs) implementing approved activities in accordance with the MOU and SAA, and consolidates the progress reports of the POs for submission to contributors. POs assume full programmatic and financial accountability for the funds received from the MPTF Office as AA, operating under their own individual financial regulations and rules. UNDP has two distinct roles in UNDP-administered MPTFs and JPs. UNDP serves as an AA, exercising fund-management responsibilities. At the same time, it also acts as a PO, implementing approved activities using MPTF and JP resources in line with its development mandate and practice areas. The Multi-Donor Trust Fund Office (MDTF Office), Bureau of Management, is the central unit in UNDP that provides and oversees fund administration services when UNDP is appointed by the UN system to serve as the Administrative Agent (AA) and as their donor administrative interface. The Office currently provides service and support to UN MDTFs and Joint Programmes in 15 countries. Multi-DonorTrust Funds (MDTFs) and Joint Programmes (JPs) receive voluntary contributions from a wide range of developed and developing countries. These countries support such MPTFs/JPs in the spirit of partnership to national governments and UN organizations. • A MDTF is a multi-agency funding mechanism, which is designed to receive contributions from more than one donor that are held in trust by the appointed Administrative Agent (AA). Donor resources are co-mingled to fund project/programmatic allocations implemented by UN Country Team (UNCT) members in a specific country in support of the achievement of nationally owned and determined priorities.

Funds administered by the Program in beneficiary countries - Click on the picture for a bigger map 
  • less than 4,000,000
  • less than 12,033,935
  • less than 19,577,750
  • less than 42,449,485
  • 42,449,485 and higher

This method has become an important funding mechanism to channel and leverage resources in an effective and coordinated way in support of UN system-wide development efforts. The increasing use of MDTFs is a direct application of the aid effectiveness agenda and UN reform initiatives in support of nationally determined and led development programmes. MDTFs usually have five common structural elements: a Steering Committee, an AA, Participating UN Organizations, Implementing Partners and Donors By channelling donor contributions through one mechanism, MDTFs aim to facilitate and streamline donor contributions and align donor reporting. By improving coordination among all stakeholders, MDTFs can also provide a forum for policy dialogue, and programmatic coordination and harmonization. • A Joint Programme (JP) is a set of activities contained in a common work plan with a related budget implemented and funded by two or more UN Agencies in support of a common result. Joint Project and Joint Programme are used interchangeably. Joint programmes are intended to reduce duplication between UN Agencies, reduce transaction costs and maximize synergies among national partners and the various contributions of UN Agencies. The division of labour among UN Agencies in a joint programme means that attribution issues are similar to those faced in single organization programmes.

Multi-Partner Trust Funds will administer for the 2010 - 2015 period a total budget amount of 2,378,299,441 USD