A Practical Guide to UNESCO’s Extrabudgetary Activities

Table of Contents

Chapter 1 Overview 41.1 Foreword 51.2 Practical and Strategic Objectives of the Guide 7

Chapter 2 Roles and Responsibilities 82.1. Themainactorsintheextrabudgetaryprocessat UNESCO 92.2 Rolesandresponsibilitiesof themainactors 10

Chapter 3 Upfront Programming of Extrabudgetary Activities in the Complementary Additional Programme 153.1 OverviewoftheComplementaryAdditionalProgramme(CAP) 163.2 TheCAPCycle 17

Chapter 4 Preparing and Screening Project Proposals 194.1 Assessingquality 204.2 TheapplicationofRBM 204.3 Ownership of stakeholders including ensuring the approval

ofthebeneficiarygovernment 214.4 Checkingfinancialaspectsoftheproposal 214.5 EnteringproposalsinSISTER 214.6 Preparationofaprojectdocument 22

Chapter 5 Planning the contracting of goods, services and works under the project 24A Planningofcontracting 25B IdentifyingandselectingImplementationPartners 25

Chapter 6 Budgeting 27A Introduction 28B Formatofthebudget 29C. CostRecovery 33

Chapter 7 Other important finance and accounting issues 35A. Treatmentofinterest 36B. Receiptofcontributions 36C. Singleaudit 37D. Ledger account versus bank account 37E. Exchangeraterisks 37

Chapter 8 Resource mobilization 388.1 Rolesandresponsibilities 398.2 ThemainstepsinResourceMobilization 418.3 TypesofResourceandManagementModalities 43

A.Financialresources 43B. Secondments and non-reimbursable loans 44

8.4 TypesofAgreement 458.5 UNESCO’sMainDonorsand Partners 45

A.BilateralGovernmentDonors 46B. The Private Sector 47C.TheEuropeanUnion 49D.MultilateralDevelopmentBanks(MDBs) 50E.UnitedNations 51F. Other funding sources and modalities of particular relevance

inpost-conflictandpost-disastersituations 54

Chapter 9 Project implementation from donor approval to financial closure of the project 56

Chapter 10 Monitoring 6110.1 ResultsBasedMonitoringbytheProjectOfficer(PO) 6210.2 MonitoringfinancialaspectsofprojectimplementationbythePO 6310.3 Monitoringandreviewbysenior management 6410.4 ReportingtoUNESCO’sgoverningbodies 64

Chapter 11 Evaluation 6511.1 Basicdefinitions 6611.2 AdditionalguidanceanddefinitionsonevaluationofUNESCOextrabudgetary

activities 6611.3 Rolesandresponsibilitiesforextrabudgetaryevaluations 68

Annexes 70

Annex I Project document template 71AnnexA–Logframe 76AnnexB–Workplan 77AnnexC 78

C1BudgetbyUNESCObudgetline 78C2Budgetbyactivity 78

Annex II Template for progress report 79I. SummaryandBackground(1page) 80II. Descriptionofprojectimplementation

fortheperiodunderreview 80III. Progresstowardsresults 80IV. Sustainability 81V. Workplan 81VI. Visibility 81VII. Challenges,lessonslearntandmodifications

totheprojectthatneedthedonor’sattention(andapproval) 81VIII Annexes 82

Annex III Template final narrative report 83I. SummaryandBackground(1page) 83II. Descriptionofprojectimplementation 83III. Progresstowardsresults 83IV. SustainabilityandExit/transitionstrategy 84V. Visibility 84VI. Challengesandlessonslearnt 85VII. Annexes 85

Acronyms 87

Glossary 88

Useful links and references 94

Chapter 1 Overview

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Overview

1.1 Foreword

The2011ReportoftheExternalAuditors1calledonUNESCOtoassembleallavailableguidanceandinformationmaterialintoasingleanduser-friendlypublicationforstaffmembers.ThisupdatedguidealsoreflectsthemanyrecentchangesinthemanagementoftheextrabudgetarycooperationwithintheOrganization. 

Indeed,sincethefirstPracticalGuidewaspublishedin2008,UNESCOhaswitnessedfar-reachingchangesinbothitsinternalandexternalenvironment.Notably,2008sawthebirthoftheComplementaryAdditionalProgramme(CAP),whichisnowUNESCO’scentralvehicleforprogrammingextrabudgetaryactivitiesandmobilizingresourcesandforofferingpipelineprojectsandproposalsforfunding.TheCAPwas,andremains,asubstantialinnovation–animportantlearningexperiencefortheUNESCOSecretariatasawhole,and,toacertainextent,forUNESCO’spartnersanddonors.Asitsnamesuggests,theCAPmodalityisdrivenbytheneedforadditionalresourcesmobilizedfromdonorstobecomplementarytothestrategicobjectivesandprioritiesofUNESCO’sRegularProgrammeandBudgetapprovedbyallUNESCO’sMemberStates.

Another important development in the overall context for cooperationwith partners and donors is the issuein September 2012 of the first comprehensive partnership strategy comprising an umbrella statement, aswell as individual strategies for cooperation with the private sector, bilateral government donors, NGO’sParliaments,AssociatedSchools,UNITWINaswellasUNESCOClubs[Ref.ComprehensivePartnershipStrategy² (190EX/21Part II)].

Fundingagreementtemplates,amongstotherthings,havealsobeenstreamlinedtotacklespecificbottlenecksin the handling of voluntary contributions and help clarify how extrabudgetary projects are to be evaluated in consultationwithpartnersanddonors.TheseeffortshavebeenaccompaniedbyarevisionoftheAdministrativeManual.

Fromadonorperspective,andbuildingonthemomentumcreatedbytheParisDeclarationonAidEffectiveness(2005),thereisincreasinginterestinchannellingvoluntarycontributionstowardscorebudgetsupportandlarge-scaleor thematicprogrammes.WithinUNESCO, arrangementshave, accordingly, beenmade toopenpooledaccounts(specialaccounts)tomobilizelightly-earmarked2 resources for each Programme Sector to give a wider rangeofoptionstodonorswhomayfavoursuchanapproach.Inaddition,inresponsetotheshortfallofregularprogrammeresourceslinkedtothewithholdingoftheUSA’sassessedcontributionssinceNovember2011,theDirector-General has also opened a special account called “the EmergencyMulti-donor Fund for ProgrammePrioritiesandReformInitiativesunderthe35C/5and36C/5.”tomobilizeunearmarkedcontributionstomeettheOrganization’scoreneeds.Thesepooledfundmechanismsexistinparalleltothemoretraditionalfunds-in-trustarrangementsallowingformaximumflexibilityinmeetingdonorrequirements.

Results-BasedManagement(RBM)appliestotheRegularProgrammeandtheactivitiesfinancedbyextrabudgetaryresourcesalikeandhasbeenoneofthecentralelementsofUNESCO’son-goingreformprocess.RBMplacesresultsatthecentreofplanning,implementation,monitoringandevaluation.ThroughRBM,progresscanbemonitoredmoreeffectivelybyusingindicator,andtargets.UNESCO’scapacitytoclearlyarticulateexpectedresultsandreportontheresultsachievedwiththesupportofitsdonorsiscriticaltotheOrganization’scapacitytomobiliseresources.Inthisrelation,itistobenotedthattheGuidecontainsrevisedtemplatesforUNESCOprojectdocumentsand

1 AuditReportonTheGeneralConditionsofImplementationoftheComplementaryAdditionalProgramme(2008-2011)2 See Glossary

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progressreportsaswellasfinalnarrativereportswhichprovideforamuchsharperresultsfocus.TheGuidealsoreflectsrecentclarificationsontheevaluationofextrabudgetaryprojects.

Inshort,internalandexternalchallengestotheOrganizationrevealhowcriticalitisforUNESCOtodevelopitscapacity to deliver results attained through extrabudgetary resources in a visible manner. The present guide is designed to contribute to just that: a house-wide effort to support action-oriented training which can help boost theabilitiesofSectors,FieldOfficesandcategory 1institutesandtheknowledgeofitsstafftomobilizeresourcesfrom public and private sector partners and implement them effectively.

Finally, IwouldaddthatallUNESCO’spolicies,proceduresandtoolsareunderconstantreviewtoensuretheircontinuingrelevanceandefficiency.ThisGuideisalivingdocument.Anymajorchangesarisingfromthereviewwillbereflectedintheon-lineversionoftheGuidewhichwillbemadeavailableinelectronicformatinEnglishandFrench on theExtrabudgetaryHelpdesk.Usersarefreetoprinttheirownreferencecopy,butintheinterestofcostefficiency,forthetimebeingtherewillbenoprintrunofhardcopiesoftheGuide.

Hans d’OrvilleAssistantDirector-GeneralforStrategicPlanning

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1.2 Practical and Strategic Objectives of the Guide

TheintentionofthisguideistogiveUNESCOstaffanoverviewofallstagesintheextrabudgetaryprocessfromproject design to evaluation.

Inpracticalterms,thepresentpublicationrespondstoaneedforimprovedclarityandunityofvisionsurroundingextrabudgetaryactivities.Itseekstobeanall-in-oneinternalguidancetooltoUNESCO’spoliciesandprocedureson interaction with partners and donors - with the relevant annexes and templates at the end of the document for back-upanddetailedreference.ItisprimarilyaimedatstaffinallSectorsandcorporateserviceswithinUNESCOHeadquarters,FieldOfficesandcategory1institutes.Withclearupdatesfromtheprevious2008version,itcanbereadbothinitsentirety,assupporttotrainingandcapacity-building,orasasourceofinformationwhichcaneasily be dipped in and out of according to particular areas of interest surrounding the extrabudgetary process.

ComplementaryAdditionalProgramme:TheCAPwascreatedtotightenthelinkbetweentheregularprogrammeandextrabudgetaryactivities.It isakeyinstrumenttoensureprogrammaticcoherenceandtoarticulatetoourpartnersanddonorswhereweseektheirsupport,inreinforcementoftheProgrammeandBudget(C/5).

ItsmaingoalistoprovideanoverviewoftheOrganization’soverallresourcemobilizationobjectives.Thesearepresentedbytheme,soastomakeiteasierforpartnersanddonorstoseewhereandhowUNESCO’sprioritiesmatch with their own.

Strategically speaking,wider knowledge of UNESCO’s extrabudgetary processes is essential for improved andwider engagement with the private sector and a whole host of bilateral and multilateral donors. This is what thispresentguideprovides.Betterinformation,andunderstandingofUNESCO’sprocedures,alsomeansbetterdialoguewithdonors.This,inturn,leadstoimprovedchancesofputtingforwardUNESCO’suniquepositionandspecificityfordonors.

Chapter 2 Roles and Responsibilities

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Roles and Responsibilities

2.1. The main actors in the extrabudgetary process at UNESCO

In thischapter, thevariousactors in theextrabudgetaryprocessatUNESCOareexplainedandtheir respectivefunctionswithin theOrganizationareclearlydefined.Bydepicting the rolesof thevariousUNESCOunitsanddivisionsinvolvedinpartneranddonorrelations,asequentialoverviewappearsofthestepsneededforthesmoothhandling of the extrabudgetary process.

Main Steps in the Project Cycle

Main steps in project cycle Person responsible Other approvals

Work planning PO(withAO) EOBFM/BMR

Agreement signing BSP/CFS LAand/or BFM when agreements are not standard

Project implementation PO(withAO) BFM/BMRBFM/FPCHRM

Narrative reporting PO DIR/Div.Head/FOEO

Financial Reporting BFM/BMR

Evaluation PO(inconsultationwithIOS) IOSSECTORADGBSP/CFS

Closing of projects POAOBSP/CFSBFM/PRG

BFM

Extrabudgetaryactivities involveawiderangeofstaff.UNESCOSectors,FieldOfficesandcategory1 institutesare responsible for programming, implementation and monitoring. They are also accountable for mobilizingextrabudgetaryresourcestostrengthenUNESCO’sregularprogramme.WhilePOsintheProgrammeSectorsandFieldOffices are themain actors in preparing and implementing activities, the Division for CooperationwithExtrabudgetary Funding Sources (BSP/CFS) provides overall coordination with partners and donors The othercorporateservices,particularlytheBureauforStrategicPlanning(BSP/PAB),theBureauofFinancialManagement(BFM),theLegalAdviser(LA),andtheInternalOversightService(IOS),allhaveimportantfunctionstofulfil.

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2.2 Roles and responsibilities of the main actors

The Project Officer (PO)3

Project Planning:ThePOinitiatestheprojectproposal.He/sheclearsthebudgetwiththeAO,andseeksclearanceoftheprojectproposalfromtheDirectoroftheDivision,orDirector/HeadofFieldOfficeorInstitute.Resource Mobilisation:ThePOidentifiespotentialdonorsandliaiseswithBSP/CFSonsubmissionoftheproposaltothedonor.Insomesituations,thePOmayapproachthedonordirectly,butalwaysworkingincloseconsultationwithBSP/CFS.Extrabudgetary Project/Programme implementation: the PO applies the specific modalities of projectimplementationinlinewithapprovedprojectdocument,fundingagreementandPlanofOperation.He/shealsopreparesnarrativereportsontheprogressof theproject.ThePOwiththeAO is responsible forensuringthatexpendituresaremadeinaccordancewiththedonoragreementandUNESCO’srulesandregulations.Iftheneedarises,he/sheinitiatesabudgetrevision.Extrabudgetary Project/Programme monitoring: daily backstopping and monitoring of the project. Closure of the extrabudgetary project:ensurestheorderlycompletionofprojectactivities,andthatallduepayments under the project have been processed.

The Administrative Officer (AO)

Provides advice andsupporton the rules, regulations,proceduresandcontractualmodalitieswhichapply toextrabudgetary projects. Ensures with the PO that all expenditures are made in accordance with the donor agreement.Provides advice on the format and structure of the budget.Certifies expenditures under the project.Checks and clearsthebudgetofprojectproposalsandbudgetrevisionspriortosubmissiontoCFS.Closure of the extrabudgetary project:theAOundertakesoutstandingpaymentsandliquidateobligations.Sector alert system:identifieseveryquarterthelistofprojectswithinsufficientdisbursementratesandsubmitsquarterlyreportstoSectors.

The Field Office Director/Head (FOD)

Defines resource mobilisation priorities and targets for countries under purview.Defines resources mobilisation strategyforcountriesunderpurviewinclosecollaborationwithSector/ServiceandUNCTandincloseconsultationwithBSP/CFS.Selects priority proposalsandsubmitstoADGs/Directorinresponsetospecificfundingopportunities.Coordinates with Sector/ServiceandBSP/CFSinputstodonorreviewmeetings.Checks and clearsthatprojectproposalsareinlinewiththeregularprogramme,coherentwithcountryprogrammeandchecksandclearstheiroverallquality.Holds overall responsibility for ensuring monitoring of projects.Presents to the Sector ADG information on underperforming projects for decision on remedial action incollaborationwiththeSectorandFieldOfficeAO(SectorAlertSystem).Checks the qualityofnarrativereportsandself-evaluations.

The Executive Officer (EO)

Defines with ADG resource mobilisation priorities and targets.Defines resources mobilisation strategy forSectororcorporateserviceincloseconsultationwithBSP/CFS.Selects priority proposalsandsubmitstoBSP/CFSinresponsetospecificfundingopportunities.

3 Alsoreferredtoasthe“ResponsibleOfficer”in SISTER.

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Coordinates with BSP/CFS inputs to donor review meetings.Checks and clears that project proposals are in line with the regular programme and checks and clears their overallquality.Holds overall responsibilityundereachADGformonitoringtheprojectsofeachSectororcorporateservice.Presents to the Sector ADG information on underperforming projects for decision on remedial action incollaborationwiththeSectorAO.Checks the quality of narrative reports and self-evaluations.

The Bureau for Strategic Planning (BSP)

BSP is the central focal pointofUNESCO for all strategic, programmatic andbudgeting issues, aswell as forcooperationwithextrabudgetaryfundingsourcesandpublic-privatepartnerships(PPPs),anditprovidesadvicetothe Director-General on all these matters.

Someofitsspecificresponsibilitiesinclude:

• PreparationandmonitoringoftheUNESCOMedium-TermStrategy(C/4)andtheProgrammeandBudgetoftheOrganizationinlinewiththeprinciplesofresults-basedplanningandprogramming;

• Monitoring of the implementation of the approved programme and its workplans through regular reviews to assessprogresstowardstheexpectedresults,andreportthereonperiodically,tothegoverningbodiesinthecontextofthestatutoryreportsinlinewiththeprinciplesofresults-basedmonitoringandreporting;

• Monitoring the implementation of the programme activities related to the two global priorities of the Organization,GenderEqualityandAfrica;

• Training,capacity-building,coachingandadviceonRBM.

System of Information on Strategies, Tasks and the Evaluation of Results (SISTER)

SISTER is an ambitious and innovative project designed by theOrganization in 1998 in its drive tomodernizeitsintegratedmanagementsystemandsupporttheswitchtotheResults-BasedManagementapproach.Itspurposeistoincorporateintoasinglemanagementtooltheprogramming,management,monitoringandreportingoftheProgrammeandBudget(C/5document)andassociatedoperationalworkplans for regular programme activities and extrabudgetary projects alike.

Used to the full, SISTER shouldprovide theOrganizationwithbudgetdata,workprogrammesandresults both for planned and executed activities and for linkages between the regular programme and the Complementary Additional Programme (CAP) aswell as the contribution to the attainment ofC/5results.Owingtothishigherprogrammeprofile,potentialdonorscan“pickandchoose”whichof UNESCO’s primary themes or more specific implementation projects to finance. Such data arecomplementedinSISTERbyperformanceindicators,meansofverificationandassociatedbaselinesandquantitativeand/orqualitativetargets.

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Division for Cooperation with Extrabudgetary Funding Sources (BSP/CFS)

BSP/CFS’sprincipaltasksaretoprovideinformationonthegeneralpoliciesandspecificrequirementsofthevariousfundingsources,suchasdonors’thematicandgeographicalprioritiesandspecificrequirementsonprojectdesignandprojectagreements.BSP/CFSalsooffersadviceandassistancewiththepreparationofagreementstoformalizecooperationwithdonors.Comprisedofateamofindividualswhoserveasfocalpointsforspecificdonors,BSP/CFSisalsoresponsibleforhandlingtheoverallrelationswithUNESCO’smainpartnersanddonors.

BSP/CFSoffersadviceandsupporttostaffonallformalaspectsofprogrammingundertheCAP,andthisincloseconsultationwithotherpartsofBSPonsubstantivepolicyissues,andwithBFMonfinancialaspectsofcooperationwithpartnersanddonors.BSP/CFScoordinateswithpartnersanddonors,andgivestraining, informationandadviceonallaspectsofextrabudgetarycooperation,fromHeadquarterstoFieldOfficesandcategory1institutes.

BSP/CFSreviewsextrabudgetaryprojectproposalsinSISTERandchecks,amongstotherfeatures,thecompatibilityoftheseproposalswiththerequirementsoftherelevantfundingsource.Projectproposalsareusuallysubmitted,inanofficialmanner,todonorsbyBSP/CFS.Afterthisformalpresentation,BSP/CFSmonitorsthefeedbackfromdonorsandkeepsthesubmittingUNESCOunitsinformedofprogress.DonorsmayalsocarryouttheirownonlineCAPdatabasesearch inSISTERto identifyproposalsof interest tothem(guided ifneedsbebyBSP/CFS).CAPoutlinesgiveaclearprojectsummarywithatotalbudget,buttheydonotcontainadetailedprojectbreakdown.OnceaCAPoutlinehasattracteddonor interest it isdeveloped intoa fully-fledgedextrabudgetaryproject inSISTER.AnyUNESCOservicecanshareaCAPoutlinewithadonoronceithasbeenapproved,buttheyshouldkeepBSP/CFScloselyinformedasamatterofcourse.

Followingtheapprovalofanextrabudgetaryprojectorprogrammebyadonor,BSP/CFS checksandprovidesadviceontheprojectagreement. If the agreementisnotbasedonastandardUNESCOmodel,BSP/CFSconsultswithBFMand/orLApriortosignature.BFMchecksanydivergencesfromUNESCO’sfinancialregulationsandrulesandfromthestandardfinancialclauses.LA,foritspart,isaskedtocheckanydeviationfromthestandardlegalprovisions.Oncetheagreementpassesthesestages,eithertheDirectorofBSP/CFSsignsthefundingagreementorhe/shedelegatesauthoritytoaDirectororHeadofFieldOfficetosignanagreement.Incertaincircumstances,theDirector-General,orothermemberofUNESCO’sseniormanagementmaysignafundingagreement iftheauthoritytosigntheagreementwasdelegatedtohim/herbyBSP/CFS.BSP/CFSthenasksBFM/BMRtocreatetheprojectaccountinSISTERandFABSandthedonorisrequestedtotransferthefunds.

Once implementation begins, BSP/CFS is in charge of submitting regular information to the relevant fundingsources.This takestheformofnarrativereports,preparedbythePO,andfinancial reports,preparedbyBFM/BMR(BudgetMonitoringandReportingSection).Theseshouldincludeafinalnarrativereportandafinalfinancialreport.Inthemeantime,BSP/CFScommunicateswiththePO,InternalOversightServiceandthefundingsourceonhowbesttoprepareandcarryoutprojectreviewsandevaluations.BSP/CFSpreparesregularreportstoUNESCO’sgoverningbodiesonthemanagementofextrabudgetaryactivitiesandpreparesandupdatestheOrganization’soverallresourcemobilizationstrategy.

BSP/CFSistheUNESCOrepresentativeatallregularreviewmeetingswithfundingsources.Onsuchoccasions,general presentations are given on overall trendswithin UNESCO, raising awareness amongst donors on theOrganization’s policies and priorities. Ongoing projects are reviewed, and new project proposalsmay also bediscussed if appropriate.

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The Bureau of Financial Management (BFM)

BFM is responsible for the financial administration of extrabudgetary funds,which includes the receipt,management, investmentanddisbursementof funds.It exercises budgetary control through the allotment system. It also reviews andadvisesonbudget-relatedaspectsofprojectdocuments,especiallythecostrecoverypolicyandbudgetrevisions,issuingperiodicalbudgetarystatusreportsandfinancialforecasts.BFMalsoreviewsthefinancialtermsofnon-standarddonoragreementstoensure that theyare incompliancewithUNESCO’s regulationsand rules.BFMisresponsibleforthereceiptofallcontributions,andthetemporaryinvestmentofany surplus funds4.BFMisalsoresponsibleforverifyingthefinancialcredentialsofpotentialPrivateSectorpartnersusinginformationprovidedbyBSP/CFS-andthisifagreementswithpotentialpartnersincludefinancialengagementsontheirbehalf.

Asstatedpreviously,BFM/BMR(unitforBudgetMonitoringandReporting)maintainsandmonitorstheaccountsofextrabudgetaryprojects,andpreparesregularfinancialreportsatleastonceayear.Whenaprojectisoverinoperationalterms,therelevantAOincoordinationwiththePOinchargeliquidatesallcommitmentsasandwhenis possible. This cannot happen any later than 12 months after the operational termination of the project and must involveBFM/BMRintheprocess.Whenallcommitmentsareliquidated,apre-finalfinancialreportispreparedandBSP/CFSisrequestedtoconsultthedonoronthehandlingofpossibleremainingfunds.Whentherearenofundsleftintheaccount,BFM/BMRpreparesafinalfinancialreportandofficiallyclosestheaccount.BFMalsoissuesannualfinancialclosinginstructionsforextrabudgetaryaccounts.

ThespecificresponsibilitiesofBFMwithregardtothereviewandapprovalofproposalstodonors isdescribedbelow:

BFM/BMR(unitforBudgetMonitoringandReporting)providesadviceandfeedbackonprojectbudgettoPOs.Usingtheonlinebudgetingtool,B4U,guaranteesthatthepreparationofbudgetswithinprojectproposalscomplieswithUNESCO’sfinancialstandardsandtheOrganization’scostrecoverypolicy.OnceBFM/BMRhascheckedandapprovedaproposedprojectbudgetinSISTER,BSP/CFS,orinsomecasesthePO,canthensharetheproposalwiththedonor.

Upon receipt of an approved funding agreement in the case of a Funds-in-Trust, and the Plan ofOperations(when required) and once the extrabudgetary project is created and validated in SISTER, BFM/BMR creates aFABS(UNESCO’sFinancialandBudgetSystem)extrabudgetarycodeandenterstherelevantallocation–andthenreflectstheFABScodeinSISTER.Authorizationsforexpenditure,intheformofallotmentsforgivenprojects,areissuedbyBFM/BMRafterarequestfromtherelevantPOviatheAOconcerned.Theseauthorizationsarebasedonanannualfinancialworkplanandonconditionthatsufficientfundsarecreditedtotheprojectaccount.

The Policy and Compliance UnitofBFMdevelopsandreviewsfinancialpoliciesandprovidesadvisoryservicesabout contracting procedures including procurement.

4 SeeAdministrativeManual,Item3.7,paragraph5.2“IncomingPayments”.

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Only BFM can prepare financial reports for the donor

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Internal Oversight Service (IOS)

TheEvaluationsectionoftheInternalOversightServicehasavitalroleinthechainofextrabudgetaryresponsibilities.IOSseekstoensurethatprogrammesandprojectsaredeliveredefficientlyandarerelevantandeffectiveintermsofdeliveringuponUNESCO’smandate.Italsoconductsevaluationsinconformitywiththenormsandstandardsof theUnitedNationsEvaluationGroup.TheC/5EvaluationPlan listsevaluationstobecarriedoutduringthebiennium inquestion. IOSpromotes focuson resultsbyencouraging the incorporationof lessons learnt frompastevaluations.IOSmaintainsadatabaseonevaluationsofextrabudgetaryprojectswhichisusedforaggregateanalysis and reporting and for supportingquality assuranceof evaluations. The Evaluation sectionof IOS canalso provide advice on the appropriate type of evaluation to be undertaken and on the terms of reference of an evaluation(seeChapter11forfurtherinformationontheroleofIOS).

TheIOSAuditSectionofUNESCOisresponsibleforall internalaudits.Auditisanassessmentoftheadequacyofmanagementcontrolsandperformancetoensuretheeconomic,efficientandeffectiveuseofresources,thesafeguardingofassets,thereliabilityoffinancialandotherinformation,compliancewithregulations,rulesandestablishedpolicies,theeffectivenessofriskmanagement,andtheadequacyoforganizationalstructures,systemsandprocesses.IOScarriesoutitsauditfunctionsinaccordancewithInternationalStandardsfortheProfessionalPracticeofInternalAuditingissuedbytheInstituteofInternalAuditors(IIA)andbytheCodeofEthicsestablishedbytheIIA.

The Office of International Standards and Legal Affairs (LA)

LAisconsultedonthelegalaspectsofnon-standardagreementsforcooperation–whetherwithafundingsourceorabeneficiaryGovernment–notablyiftheprovisionscouldpossiblyexposeUNESCOtorisks.

Bureau of Field Coordination (BFC)

In the extrabudgetary context, BFC plays a very important role in co-ordinating UNESCO’s overall response,includingresourcemobilisationtopostconflictandpostdisastersituations.

Themobilizationofresourcesforpost-conflictandpost-disaster(PCPD)situationsisveryspecific.Insuchsituations,theInter-sectoralPlatformonPCPDassumestheleadincoordinatingfundraisingcampaignsinclosecooperationwithBSP/CFSandtherelevantFieldOffices.CoordinationwiththerelevantUNcoordinationmechanisms(OCHA,ECHA)shouldalsobemade.Ingeneral,inordertoaccessUN-widefunding,UNESCOshouldparticipateattheearlystagesofplanningforrecoveryandreconstruction,notablythroughUNcoordinationmechanismsandneedsassessments(oftencoordinatedbyotherpartnerssuchastheWorldBank).

Bureau for Human Resources Management (HRM)

JointlywithBSP/CFS,thePolicysectionofHRM(HRM/POL)servesasthefocalpointforloansandsecondmentstoUNESCO(seeChapterVonTypesofResourcesManagementModalities”).HRMcanalsoprovideadviceonappropriateformsofcontractingpersonnelunderextrabudgetaryprojects, includingProjectAppointmentsandextrabudgetary secondments.

Chapter 3 Upfront Programming of Extrabudgetary Activities in the Complementary Additional Programme

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Upfront Programming of Extrabudgetary Activities in the Complementary Additional Programme

Inthischapter,theinsandoutsoftheComplementaryAdditionalProgramme(CAP)aredescribed,aswellastheemphasisonResults-BasedManagement(RBM).Theimplicationsforextrabudgetaryprogrammingarelaidout.

3.1 Overview of the Complementary Additional Programme (CAP)

TheComplementaryAdditionalProgramme(CAP)isUNESCO’smaintoolfortheprogrammingofextrabudgetaryactivities. It directlyunderpinstheworkof theC/5andactsasavehicle fordialoguewithdonors.TheCAP isdesigned tocreateaunified results framework,bolstering thealignmentbetweenextrabudgetaryand regularprogramme resources.

The CAP comprises a live database of pipeline proposals for donors in SISTER. Proposals for funding (CAPoutlines)aremadeavailabletodonors,partnersandthegeneralpublicviatheweb.Inaddition,abrochurewithacomprehensiveoverviewofUNESCO’soverallobjectives inmobilizing resources isalsopublishedandwidelydistributedtoUNESCO’spartnersanddonors.

Extended Strategic Sectoral Frameworks (ESSFs)

TheESSFsetsouttheprioritiesandtargetsforresourcemobilizationforeachSector/CorporateService,asforeseenintheDirector-General’sActionPlan(174EX/INF.4Rev.).TheESSFconstitutesabasisforthecontributionofeachProgrammeSector/CorporateServicetotheCAP.InlinewiththeUpdatedExtrabudgetaryResourceMobilizationStrategicPlan(185EF/INF.6),eachProgrammeSector/CorporateServiceshoulddrawupanESSFattheoutsetofaprogrammingexercisesoastomaximizetheopportunityforestablishingaclearstrategicvisionregardingtheareasselectedforresourcemobilization.

TheCAP is seenasa livingandconstantly-evolvingplatform.Theadvantageof this is that it canbe regularlyupdatedtomirroremergingneedsandnewfundingopportunities,orthosearisingfromunforeseencircumstancessuchaspost-conflictorpost-disastersituations.Importantly,newProgramme/ProjectOutlinescanbecreatedatanytimeinSISTER.

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3.2 The CAP Cycle

Step 1

ADG/BSPsetsouttheoveralltimelineforthepreparationoftheCAP.

Step 2

ResourcemobilizationobjectivesaresetintheformofExtendedStrategicSectoralFrameworks(ESSFs)preparedbyeachProgrammeSectorandCorporateService.ESSFsaredrawnupattheoutsetofthebiennialprogrammingexercise in parallel with the Sector Strategic Frameworks relating to regular programme. They set out of the strategicvisionforresourcemobilizationandguidethedevelopmentofproposalsfordonorsintheformof“CAPOutlines”.

Extrabudgetary project

Project Preparation & Implementation

All XB projects must be associated with

a CAP outline

Thematic extrabudgetary outline

Programming & Resource Mobilization

Programme/Project extrabudgetary outline

TherearetwotypesofoutlineintheCAP,theThematicOutlineandtheProgramme/projectOutline.AThematicOutlinesetsoutthebigpicturefordialoguewithdonorsandalsoservesasaguideforthemorespecificProgrammeor ProjectOutlines.CAPProgramme/projectOutlines aredevelopedbyPOs (responsibleofficers in SISTER) forspecificinitiativeswhichneedtobehighlightedseparatelytoattractfunding.CAPOutlinesgivetheestimatedtotalamountoffundsrequired,buttheydonotcontainabreakdownofthebudget.

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Sectors should use the ESSF to clarify in-house which areas are to be prioritised for resource mobilisation. Field Offices should be consulted on the ESSF before they are finalized.

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Step 3

Thematic Outlines and Programme/project Outlines

EachsectorpreparesThematicOutlines.TheThematicOutlinesareunderthedirectauthorityofeachADG.

Thematic Outlines Programme/project Outlines

• Strategic priority• The big picture for dialogue with donors• ServesasaguideforprogrammingmorespecificProgramme/projectOutlines

• UndertheresponsibilityofeachADG,createdbyEOs• Estimateoffundingrequired• OnceanOutlinehasattracteddonorinterest,an

extrabudgetary project can be created• Wheneverpossible,allSectors/ServicesareurgednottoestablishThematicOutlinesbelowUSD2million.

• Aspecificcontext(programmaticorgeographic• CreatedbytheProject/ResponsibleOfficer• Aprogrammethatrequiresspecificvisibilityforresourcemobilization

• Likeaconceptnote(notdetailedbudgetbreakdown,onlyanestimateoftotalrequired)

• ApprovalofOutline(firstbytheDirectors/HeadsofFieldOfficesandcategory1institutes,thenbytherelevantHeadquartersDivisionsandthentherelevantExecutiveOfficeofeachSector/Service)givesgreenlightforfundraising

• OnceanOutlinehasattracteddonorinterest,anextrabudgetary project can be created

• Wheneverpossible,Sectors/Servicesareurgednottoestablishself-standingProgramme/projectOutlinesbelowUSD500.000.

Step 4

POs prepare themore specific Programme/projectOutlineswithin the thematic areas set out in the ThematicOutlines.

Step 5

AfterapprovalofthefinalCAPbytheDirector-General,theCAPOutlinesaremadeavailabletopartners,donorsandthegeneralpublicviainternet.AnoverviewoftheCAPisalsomadeavailableintheformofabrochureandcirculatedwidelytodonorsandpartners.Conductingasearchismadeeasy,forbothUNESCOanddonorsalike,becausetheCAPprovidesaclearthematicviewofprioritiesandexpectedresults.

Chapter 4 Preparing and Screening Project Proposals

20

Preparing and Screening Project Proposals

4.1 Assessing quality

4.1.1 In assessing the quality of a proposal, the first question to be addressed is how the project contributes to achieving the expected results expressed in UNESCO’s regular Programme and Budget approved by all UNESCO’s Member States.

4.1.2 Other quality assessment criteria are: relevance, effectiveness, efficiency, sustainability. These criteria are explained below:

– Relevance:towhatextentistheprojectadaptedtotheprioritiesandneedsofthebeneficiarygroup(s)and the donor?

– Effectiveness:towhatextentaretheobjectivesoftheprojectlikelytobeachieved? – Efficiency:isthisthemostefficientapproachintermsoftimeandcosttoachievethestatedoutputs/

deliverables of the project? – Sustainability:towhatextentarethebenefitsoftheprojectlikelytocontinueafterthefundingfromthe

donor has come to an end?

ThesequestionsneedtobeaddressedbytheProjectOfficer(PO)duringtheprojectdesignphase,andduringthevalidationprocess,includingthereviewbytheDirectororHeadofOfficeorDivision,andbytheEO.

4.2 The application of RBM

RBM applies to the programming of extrabudgetary activities in exactly the same way as it applies to regular programme.SISTERisanITplatformthatwasinitiallydevelopedtosupporttheOrganization’stransitiontotheRBMapproachandassistUNESCOstaffinapplyingit.Itnowaccompaniesitsimplementationbybeingcontinuouslyadaptedtoreflectemergingandevolvingneeds.

TheintegrationoftheextrabudgetaryprocessinSISTER,overthecourseof2010-2011,hashelpedcontinuedthepathtoastrongapplicationofRBM,particularlyinthepreparationofproposalsandmonitoring.ThroughSISTER,itisnowpossibletogetafullpictureofallresourcemobilizationeffortswiththeexpectedresultsclearlyarticulated–linkinginwithUNESCOpriorities,themesandaspirations,bothintheextrabudgetaryandtheRegularProgramme.TheRBMapproachensurescoherentandconsistentresults-basedprogramming,management,monitoringandevaluationthusreinforcingtheattainmentoftheoverallprogrammaticprioritiesoftheOrganizationwhichhavebeen agreed upon by all UNESCO’s Member States. In short,RBM isabasicpillarofUNESCO’sprogramming,operationsandmonitoring and is vital for ensuring relevance, effectiveness,efficiency,sustainabilityandimpact.

Inthisrelation,itisessentialtoreadResults-BasedProgramming,ManagementandMonitoring(RBM)approachasappliedatUNESCOin tandemwiththepresentGuide.

!

The resource management modality that applies to specific project proposals is the funds-in-trust modality. (See Chapter 8, point 8.3)

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4.3 Ownership of stakeholders including ensuring the approval of the beneficiary government

Ensuringthatthenationalauthoritiesandotherstakeholders,orpotentialbeneficiaries,arecloselyinvolvedfromthe project design phase and throughout the project cycle is of critical importance to ensuring the sustainability and impactoftheproject.Ideally,theprojectconcept,ortheprojectdocument,includingtherolesandresponsibilitiesofthenationalauthoritiesshouldhavereceivedthede-factoapprovalofthegovernment,beforetheproposalissenttothedonor.Insomeinstances,thedonormayrequestUNESCOtoprovidewrittenproofofthebeneficiarygovernment’sapprovalofaproposal,beforegivingformalconsiderationtoaproposal.Failingtoseekbeneficiaryapprovalearlyenough in theprocesscancreatedelays furtherdown the linewhichcan irritate thedonor,orin extreme situations cause the donor towithdraw funding from the project. Beneficiary country approval isformalizedonceanagreementfortheprojecthasbeenconcludedwiththedonor.

Thisformalbeneficiaryapprovalhas3mainaspects:

• itformalizestherights,theroles,andtheresponsibilitiesofthebeneficiarycountry;• itconfirmsUNESCO’saccesstotheterritoryofthebeneficiarycountrytoimplementtheproject;• itgrants legalprotection toUNESCO through theapplicationofprivilegesand immunities to the specific

project.

For projects financed by bilateral government donors in a singlecountry,aplanofoperations isnormallysigned.Thesignatureofaplan of operation is compulsory only for projects implemented in a single country.

For projects financed by other types of donors, CFS should beconsulted for advice about the appropriate means of formalizingbeneficiarycountryapproval.

4.4 Checking financial aspects of the proposal

TheAOadvisesonthe formatof thebudget tobeused in theprojectdocument,checks theaccuracyof thebudgetandthatallcostsrelatingtotheprojecthavebeen,includedtotheprojectbudgetandafinalcheckoftheapplicationofcostrecovery,andclearanceoftheprojectbudgetisdonebyBFM(seeChapter6“Budgeting”).

4.5 Entering proposals in SISTER

TheprogrammingplatformwithinSISTERisalsousedtocheckthequalityofsubstantiveandbudgetaryaspectsofproposals.ThroughSISTER,thePO,theHeadofUnitorOffice,theunitspecializedintheareaoftheproject(upperlevelgrouping)andtheExecutiveOfficecheckandvalidatethesubstantiveaspectsoftheproject.Similarly,theAOand BFM check and clear the budget.

AllextrabudgetaryprojectsneedtobeuploadedinSISTERinordertobevalidatedbyallrelevantservices.Formoreinformation,pleaserefertoSISTERHelpCard2.5b–TheExtrabudgetaryProcess

To make sure that all proposals to donors are for activities that are closely linked to the expected results of UNESCO’sRegularProgramme,eachextrabudgetaryprojectinSISTERmustbelinkedthroughSISTERtoaThematicOutlineintheCAPandspecifytowhichandhowitwillcontributetotheC/5result.

!Do not wait until the donor has approved the proposal, before seeking the approval of the beneficiary government.

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4.6 Preparation of a project document

Onceapotential fundingsourcehasexpressedfirminterest ina proposal (CAP outline), the relevant UNESCO unitwill startthe preparation of a full project document including a detailed budget. This may happen before or in parallel to the internal validationprocessofanextrabudgetaryprojectinSISTER.

AmodelprojectdocumenttemplatehasbeendevelopedwhichreflectsUNESCO’scommitmenttotheRBMapproachandwhichmeets the high standards currently expected by UNESCO’sdonors.ThetemplateisattachedasANNEXItothepresentGuide.AWORDversionofthemodeltemplateisalsoavailableontheBSP/CFSintranetsite,atthefollowingaddress:http://intranet.unesco.org/exbhelpdesk.

Intheeventthatitisnecessarytoundertakeaneedsassessmenttocompleteprojectdesignand/ortobeabletopresentadetailedbudget,youcanprovideforaninceptionphaseintheprojectdocument.Assuchyoushouldexplainintheprojectdocumentthatafteragivenperiodoftimeafterthestartupofprojectactivities,whenthesituationiswellassessed,arevisedresultschainandLog-frameandmoredetailedbudgetwillbesubmittedtothedonor for approval.

Somepartnersanddonorsmayprovidetheirownmodelsforprojectdocuments.Adviceonmodeltemplatesforprojectdocumentsisprovided,uponrequest,byBSP/CFS.Suchadviceisrecommendedasdonorrequirements,particularlywhenitcomestomultilateralfundingpartners,canoftenbequitevariable.Somemultilaterals,forexample, have their own standardmodels and sometimes award funding on the basis of a bidding process.Moreover,cooperationwithotherUNbodiesorwithinongoingUNfundingmechanisms(forinstance,multi-donortrustfundsorjointUNprogrammingapproach)issubjecttoparticularformats.

!

Careful and realistic planning of a project will avoid delays during project implementation caused by revisions and re-programming.

23

Enhancing Donor Visibility

Check List for Project Officers:

Preparation of a project document

• Include visibility-related measures in project document (launching ceremony, production ofbrochures,web-basedannouncements,events,etc.);

• Asamatterofcourse,createbudgetlineforvisibilityinprojectdocument;• Fullyinvolvethedonorcountry’sambassadorand/orrelevantrepresentativesinUNESCOproject

process.

Approval and launching of a project

• ArrangelaunchingceremonyorsigningceremonyofthePlanofOperationsinconsultationwithbeneficiarygovernmentand invite thedonor’s representative (e.g. ambassadorof thedonorcountry)totheceremony;

• Issueapressreleaseorcallapressconferenceifappropriate;• PostinformationonUNESCOwebsiteandrequestthatthebeneficiarycounterpart(ministries,

institutions,universities,NGOs,etc.)carryoutactivepublicrelationsthroughtheirownwebsitesorinformationchannels;

• Briefthebeneficiarygovernmentontheimportancegivenbythedonortotheproject’svisibilityand raise awareness about the potential impact of visibility efforts on the donor’s ongoingsupport or future contributions.

During Implementation

• Keepthedonorcountry’sembassyandrepresentativesfullyinformedofprojectprogress;• Again,invitethedonorcountry’sambassadorandrelevantofficialstoanyorganizedevents;• Highlight theproject’s visibility and standing (includingUNESCO’sefforts in this area) inany

progressreport;• Sharevisibilityevidence(e.g.localnewspaperarticles,websitelinks,newsletters,etc.)toBSP/

CFSforforwardingonwardtodonors;• MakeappropriateandintelligentuseoftheUNESCOlogoaswellasthatofthedonor;• Ensure the beneficiary government understands the importance of visibility and impact for

donors–helpingfacilitatewordsofthanksbyministers,inclusioninlocalpressandreferenceto relevant papers.

Upon Completion

• Issuepressreleaseandpostitonrelevantwebsiteorcallapressconference,(possiblyplanningtrainingandSouth-Southworkshop)ontheproject’soutcome;

• Sendcopiesofpromotionalmaterials(leaflet,brochures,books,production,etc.)todonor,viaBSP/CFS;

• Anyevidenceofefforts topromote theprojectand thedonor’s visibility (press release, localnewspapers, articles, beneficiary government’sminister and senior official speeches, photos,websitelinks,publications,etc)tobeannexedtothefinalreport.UNESCO’sefforts(invitationofthedonor’srepresentativestolaunch,localpresscuttings,usesoflogo,webnews,etc.)tobedescribedindetailtooandhighlightedinfinalreport.

Chapter 5 Planning the contracting of goods, services and works under the project

25

Planning the contracting of goods, services and works under the project

A Planning of contracting

Duringthedesignstageoftheprojectcycle,allrelevantactivitieswillneedtobeidentifiedandbudgeted.Amongtheseactivities,considerations must be taken for the acquisition of goods,services and works in order to achieve the project objectives. UnderstandingoftheUNESCOcontractingmodalitiesandrelatedprocesses is important to facilitate the project implementation and to improve the probability that the desired objectives will beobtained ina timelymanner. Earlyplanningof contractingwill further assist in bridging the gap between programme and administration, ensuring value follow for money, betterallocation of existing resources, avoiding unnecessary andunjustifiable emergencies, giving sufficient time to explorealternative contracting modalities and a possibility to aggregate demand,toreduceadministrativetimeandcost.

B Identifying and selecting Implementation Partners

1. Implementation partners are not-for-profit institutional entities to which funds are transferred for theimplementation of a UNESCO programme or project. In contrast with commercial contractors which providegoods,worksorservices,implementationpartnersareexpectedtoaddvaluebeyondthedeliveryofaproductorservicebybeingfullyinvolvedintheconceptionoftheactivitytobeimplementedinpartnershipwithUNESCO. 

2. Animplementingpartneroftenfulfilsauniquefunctionandcannotbeeasilyinter-changeablewithanotherorganization.TheimplementationpartnerisentrustedwithandfullyresponsibleandaccountableforsuccessfullymanaginganddeliveringUNESCOprogrammesandprojectsoutputs/deliverables,resultsandactivelyparticipatesinplanning,monitoringandevaluationactivities.

3. Implementation partnersmay include governmental entities, intergovernmental organizations (other thanUN entities), non-governmental organizations, research institutes and universities, professional associations,foundationsandothernot-for-profitorganizations.

4. Animplementationpartnershouldbeselectedaftercarefulcomparisonwithotherpotentialimplementationpartnersonthebasisof its specific technicalexpertise,professional skills,adequatestaff resources, reasonably

soundfinancial status, appropriate internal controlproceduresand management practices and geographic coverage. The selected implementation partner must have the operational capacitytomanageandachieveresultsonbehalfofUNESCO.Theresponsibility and authority for the selection of implementation partners rest with the relevant Sectors’ Assistant Directors-General,DirectorsofBureaux,orHeadsofFieldOffices,andthe

!The scope of planning will depend on the complexity of the requirement. When involving significant contracting (those amounting to USD 150,000 and above) it is mandatory to undertake the planning in consultation with BFM/FPC (Financial Policy and Compliance Section).

!

If an implementation partner is mentioned by name in a project document the partner should already have been screened.

26

selection process should be done following an effective comparative process on the basis of the general and specificselectioncriterialaiddowninManualitem.

Procurement Implementation partners contractual modality

Appliestocommercialentities Appliestonot-for-profitorganisations

Appliestotheacquisitionofgoodsworksandservices ImplementationPartnerscontributetoprojectdesignandimplementation including by providing an added value beyond thedeliveryofaspecificproductorservice.

Valueformoney Implementationpartnershaveauniqueroleoffunctionvis-à-vis the project that cannot be played by another organisation

InvolvinganentityasanIPAinaproject,mayaimtobuildthecapacity of that entity

Manualitem10.2 Manual item 7.2

Chapter 6 Budgeting

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Budgeting

A Introduction

ThepreparationoftheprojectbudgetshouldalsofollowtheRBMapproach.Animportantfactorfordevelopingasound budget is the accurate assessment of the cost of the main inputs of the project activities.

Building a Budget Using Elements in the Project Document

Budg

et:

= in

puts

x

cost

s

Inpu

ts: n

eede

d to

ac

com

plis

h th

e ac

tiviti

es a

nd

expe

cted

resu

lts

Act

iviti

es &

Ex

pect

ed R

esul

ts

(out

puts

): to

ach

ieve

th

e sh

ort t

erm

pu

rpos

es:

Ove

rall

Proj

ect

Goa

ls

Imm

edia

te/sh

orte

r te

rm p

urpo

ses:

ne

eded

to a

chie

ve

the

over

all p

roje

ct

goal

s

Overall Project Goals

Short Term Purpose 1

Short Term Purpose 2

Activity 1.1 & Expected

Results

Activity 1.2& Expected

Results

Activity 2.1& Expected

Results

Activity 2.2& Expected

Results

Input 1.1.1

Input 1.1.2

Input 1.2.1

Input 2.1.1

Input 2.1.2

Input 2.2.1

Input 2.2.2

Workplan Budget

Input x Unit Costs

General Inputs (e.g.

Misc. Expenses

etc.)

Input x Unit Costs

Inessence,aproject budget is the plan of disbursements,duringaspecifiedperiod,forcarryingoutactivities plannedintheprojectdocument,inordertomeettheproject’sobjectives(goalsandpurposes),andproducethedesired results and impact.Todrawupabudget,standardcostsareusedforeachitem/activity,unlessactualcostsare available. The standard costs on personnel are reviewed and revised as necessary every year by BFM. These are availablefromtheAOorareaccessibleontheBFMhomepageitself.

29

B4U

In2011,thebudgetbuildingtool“B4U”wasintroducedtohelpsystematisetheconstructionofbudgetsbasedonstandardUNESCOcosts.

AdetailedpricelistwhichwillgivePOsauniformbasisforestimatingthecostofprojectinputsisunderdevelopment.

All information related to B4U is available on B4U Help Card Budgetary Process and Budgetary Aspects of Extrabudgetary Projects http://b4u.hq.int.unesco.org/GuideLines.aspx?id=10

Abudgetshouldbepresentedasamulti-year,multi-componentmatrix, showingnotonlyhowmuchan itemoractivitywill cost,butalsowhenthe fundswillbeneeded.One importantquantitativemeasureofprogressinaprojectisitsrateofexpenditure-inotherwords,therateofspendingfortheproject’sfundsascomparedto the annual allotments issued by BFM for each project and on the basis of the work plan elaborated by the PO.Itis,therefore,thePO’sdutytoplanthetimingandbudgetingofthedifferentitems/activitiescarefullyandto revise the budget if some of the items or activities cannot be undertaken within the originally anticipated timeframe.Moreover,POsshouldbefullyawareofanyinternalorexternalfactorswhichmightadverselyaffecttheimplementationoftheprojectandfactortheseinbyallowingforamorerealistictimeframe,orbymakingsurethat remedial action can be taken if an issue occurs.

B Format of the budget

Theformatofthebudgetwilldeterminetheformatoffinancialreporting.Whenanagreementisnegotiated,thedonorwillbeconsulted to checkwhether theywish to receive thefinancialreport in UNESCO’s standard format by UNESCO budget line(budget template 1 below) or by activity (budget template 2below). Once the budget has been configured in UNESCO’ssystem, financial reporting will automatically be generated inthatformat.Itwillnotbepossibletoswitchtoanotherformatoffinancialreportingoncethefinalbudgethasbeenenteredintothesystem.Insummary,itisveryimportanttoclarifythedonor’sexpectations on this point from the outset.

Otherconsiderationsinchoosingbetween,abudgetbyactivityandabudgetbyUNESCObudgetlineincludethefollowing:

• Thetypeofcategoriesofexpenditurewhichthedonorwishestomonitor,eg.Theproportionofthebudgetallocatedtoequipment,orconsultants.

• Easeofmanagementoftheproject.ItmaybeeasierandmoremeaningfulforthePOtomanageaprojectbudgetbyactivity,ratherthanbyUNESCObudgetline.Conversely,forcomplexmulti-countryprojects,itmaybepreferabletopresentabudgetonlybyactivity,andnotbyactivityandcountry,forthesamereason.

!

Make sure the donor has a clear understanding of the format in which the financial reporting will be delivered before the agreement is signed.

30

BUDGET TEMPLATE 1 – Budget by budget line

Cost Elements Description Year 1 Year 2 Year 3 Total

(10) Staff        

(10’)Travelcosts – – – –

(11) Internationalexperts/Consultants – – – –

(13)AdministrativeandTechnicalsupportstaff

– – – –

(14)UnitedNationsVolunteers – – – –

(17) National experts – – – –

(10) Total Staff – – – –

(20) Subcontracts – – – –

(30) Training, seminars and meetings – – – –

(40) Equipment – – – –

(50) Miscellaneous – – – –

Subtotal – direct costs – – – –

(80) Support costs – – – –

TOTAL – – – –

IrrespectiveofwhetherornotthebudgetintheagreementisbyUNESCObudgetlineorbyactivity,thePOshouldcompletethedetailedbudgetworkplan(byUNESCObudgetline)sothatBFMcancheckwhetherallrelevantcostshave been provided for.

BUDGET TEMPLATE 2 – Budget by activity

Activity Total (US$) Year 1 Year 2

A.

(1)

(2)

(3)

(4)

Sub-total

B.

(1)

Sub-total

Support Costs

TOTAL

!Avoid a situation where the budget in UNESCO’s system is different from the one in the donor agreement – e.g. the budget in the agreement is by activity and the budget in UNESCO’s system is by UNESCO budget line. This means that only manual control over the budget can be exercised by the PO and AO.

31

Managing a budget by activity

InUNESCO’s system, theunit fordividingupandmanagingabudgetbyactivity is somethingcalleda“WBSelement”.WBSelementshavetobereflected in theexact formatof theapprovedbudgetwhenreportingbyactivity.WBSelementscanalsobeusedfordividingupresponsibilityformanagingspecificcomponentsofaprojectbetweentwodifferentUNESCOunits,orbetweenaDivisionatHeadquartersandaFieldOffice,forexample.WBSelements which are exclusively set up to divide up the responsibility for project implementation between different implementingunitsarenotreflectedinfinancialreporting.

Budget revisions

ThePOisresponsibleforinitiatingabudgetrevisionandclearingitwiththeAO.Budgetrevisionsinvolvingthetransferfromonebudgetlinetoanotherareprocessedusingthe“BudgetOperationRequest”inSISTER.Budgetrevisionsinvolvingatransferoffundsfromoneactivity(WBSelement)toanotherareprocessedinFABS.Ifthebudgetrevisionhasanimpactonthebudgetinthesignedagreement,BSP/CFSwillcontactthedonorforapproval;unless there is a provision in the signed agreementwhich allows BSP/CFS to process certain types of budgetrevisionwithoutcontactingthedonor.Tosupporttherequesttothedonortoapprovethebudgetrevision,thePOshouldprepareandsendtoBSP/CFSanexplanation,andabudgettablewhichshowshowtherevisedbudgetdiffers from the approved budget.

For more information on how to request a budget revision via SISTER, please refer to SISTER Help Card 3.3 – The Budget Operation Request tool

32

BUDGET TEMPLATE 3 – Detailed Budget Workplan (for internal purposes)KindlynotethatthistemplateisavailableviaB4Uorinexcel(provideduponrequesttoBSP/CFSorBFM).PleasecheckagainstthelatestversionoftheExcelsheetprovidedbyBFM.ThebudgetinB4Upresentsminordifferences.

Cost Element Descriptions Yr 1 Yr 2 Total

Budget Line Cost Element Group

Sub Cost Element Group

Description      

(10) Staff

(10’) Travel costs

(10.00’) Statutory travel –

(10.10’) Missions –

Subtotal – Travel costs  –

(11) International experts

(11.00) Internationalexperts –

(11.20) Internalexperts –

Subtotal – International experts –

(12) Consultants[1] –

Subtotal – Consultants  –

(13) Administrative and Technical support staff

(13.00) AdministrativeandTechnical staff –

(13.20) Supportstaff(internal) –

(13.30) SocialChargesofProfessional Temporary staff –

Subtotal – Administrative and technical support staff –

Total – (10) Staff –

(20) Subcontracts –

Total – (20) Subcontracts

(30) Training, seminars and meetings

(31) Individualfellowships –

(32) Othertraining,seminarsand meetings –

Total – (30) Training, seminars and meetings –

(40) Equipment –

Total – (40) Equipment     –

(50) Miscellaneous

(52) Reporting –

(53) Other expenditure –

(54) Communication –

(55) Utilities –

(56) Financial charges –

(57) Audit/evaluation –

(58) Translation/Documentation

–

(59) Security costs –

Total – Miscellaneous     –

      Subtotal – direct costs –

(80)     Support costs –

      TOTAL –

33

C. Cost Recovery

UNESCO’sCostRecoveryPolicyfunctionsundertwobasicprinciples:(i)allcostsneededfortheproperimplementationofanextrabudgetaryprojectshouldbebudgetedforandchargedtothatproject;(ii)costsshouldberecoveredincaseswhereRegularProgrammeresourcesareusedforanextrabudgetaryproject’simplementation.

• Direct costs: Costsincurredbytheproject,andcanbetracedinfulltoaparticularproject.Thesecostsshouldbechargeddirectlytotheproject.Therefore,theyshouldbeearmarkedinthebudgetproposalstoensurethatsufficientfundsareavailablewhentheexpenditureismade.Incaseswhereregularprogrammeresourcesareusedforprojectimplementation,thesedirectcostsshouldalsobeforeseeninandchargedtotheprojectbudget.

Direct Costs include (but are not limited to):

Indirect Variable Costs include (but are not limited to):

• Staff• Travel• Subcontracts• Training,seminars&meetings• Preparation of technical reports• Equipment&projectpremises• Security costs• MonitoringandEvaluation• Visibility• Miscellaneouscosts,suchascommunication,utilitiesetc• Anyotherinputnecessarytoachievetheproject’sobjectiveswhicharenotincludedinthePSCrate.

• Supporttoprocurement(e.g.byAdmin.Office)• Preparation&monitoringofbudgets• Maintenance of project accounts• Non-technicalsupervision• Controlofprojectexpenditure• Receipt&disbursementoffunds• Preparation of proposals to donors• Negotiationofagreements• Recruitment&HRMservices• Financial reporting• Supporttoexternal/internalaudits

• Programme support costs (PSC), also called administrative overhead costs: indirect variable costs which are incurredbyUNESCOinitssupporttoextrabudgetaryprojects,butwhichcannoteasilybetracedunequivocallytotheproject.Thesecostsarethereforeestimatedasapercentageofdirectprojectcosts,andcomponent80ofthebudgetbyUNESCObudgetline.ForUNESCO,thesecostsgenerallyincludethesupportandadministrationof Programme-relatedandCorporateServices(e.g.BSP,BFM,LAetc),andoftheadministrativeunitsofFieldOffices.

Currently,UNESCOrecoversthesecostsbyapplyingaPSCrate(i.e.apercentageoftheproject’stotalexpenditure).

Standard PSC rates %

Standard rate 13

Equipment 8

Donor-funded special accounts 10

Delivering as One pilots, Multi-Donor Trust Funds, United Nations Joint Programmes and European Union (provided that the costs which would have normally been covered by the PSC rates are charged as direct costs to the project).

7

Minimum flat flee $6,500–forsmallprojects($50,000orless)

ProgrammesupportcostsareautomaticallytransferredbyBFM,astheyareearnedfromactualcashdisbursements,intotheFunds-in-TrustOverheadCostsAccount(FITOCA).ThisisthenredistributedtotheconcernedUNESCOunits,amongtheimplementingProgrammeSectorsandFieldOffices,andtheProgramme-relatedandCorporateServices.AccordingtotheFinancialRegulationsoftheSpecialAccountforSupportCosts,supportcostsincomeis used for the general administration of projects financed from extrabudgetary funds, including personnel,

34

informaticssupport,andtechnicalbackstopping.Thisdistributioniscarriedout,onceayear,afterapprovalbytheDirector-General,andisbasedonactualexpenditureearningsofthepreviousyearbytheunitsconcerned.FITOCAisadministeredbyBFM;andFITOCAfinancedexpendituresarecommittedandpaidinaccordancewithstandardbudget procedures.

RegardingSpecialAccounts,aprogrammesupportcostrateof10%hasbeenapplicablesinceDecember2006astheadministrativehandlingoftheseaccountsincurscostsfortheOrganization,althoughataslightlylowerlevelthanforFunds-in-Trustaccounts.Thisreflectsthefactthatnoindividualnarrativeandfinancialreportingisprovidedundertheseaccounts to the funding sources.

Inexceptionalcircumstances,arequest(withthereasonsexplained)maybesentbytheimplementingSectororFieldOfficetotheDirector-General,viaBSP/CFSandBFM,forawaiverfromnormalsupportcostsrequirements.Thefollowingconditionsmustfirstbemet:

• Therequestingunitshouldprovideevidenceoftheneedandjustificationforthederogation,• BFMmustbeinformedoftherequestforthewaiverwhenverifyingthedraftbudgetinordertoensurethat

the necessary recoveries of the direct costs are foreseen directly in the budget.• ThecostrecoverypolicyalsostatesthatthereshouldbeabalanceFITOCAaccountbeforerequestingawaiver

(ietherequestingunitshouldhavegeneratedsufficientFITOCArevenuetocoveritsFITOCApostsifany).

For more information on UNESCO’s methods to charge costs, please refer to the Guidelines on the Cost Recovery Policy and Budgetary Aspects of Extrabudgetary Projects

Chapter 7 Other important finance and accounting issues

36

Other important finance and accounting issues

A. Treatment of interest

InterestearnedonFunds-in-Trust(donatedandself-benefitingprojects),technicalassistanceprojectsfinancedbymultilateraldevelopmentbanks,andtheAssociateExpertsscheme,isdistributedwithtwo-thirdstotheproject(butmayonly beutilizedupon specific approval by thedonor), andone third to FITOCA. Interest accrued inspecialaccounts,oncontributionsfromtheEuropeanUnionandonprojectsfinancedbyUnitedNationssourcesiscreditedinfulltotheprojectaccount.Conversely,interestaccruedinaccountswherethecashbalanceislessthanUSD 50,000iscreditedinfulltoFITOCA.

B. Receipt of contributions

Asarule,voluntarycontributionsshouldbereceivedinthefollowingUNESCOBankaccounts:

For contributions in USDAccountholder: UNESCOBank: JPMorganChaseBankBankaddress: InternationalMoneyTransferDivision,

4MetrotechCenter,Brooklyn,NewYork,NY11245,USAAccountnumber: 949-1-191558SWIFT: CHASUS33–ABAN°0210-0002-1

For contributions  in EurosAccountholder: UNESCOBank: SociétéGénérale,Paris,FranceBIC-SWIFT: SOGEFRPPIBAN: FR7630003033010003729190997

!Voluntary Contributions paid in currencies other than USD and EUR require an authorization from the Treasury Section of BFM

37

C. Single audit

• GovernedbyArticle12ofUNESCO’sFinancialRegulations.• OnlyUNESCO’sExternalAuditorscanconductauditsonUNESCO’saccounts.

SpecificauditscanonlyberequestedbyUNESCO’sMemberStates&governingbodies

• UNESCO does not provide any original/copies of accounting documents / financial supportingdocumentation to donors.

• Thefinancialreportissued by BFM shouldbetheonlyfinancialdocumentsharedwithdonors.• As perUNESCO rules,keep all original invoices/supporting documentation for internal controls and

audits(internaland/orexternal),foraperiodof10 years.

D. Ledger account versus bank account

• Asarule,UNESCODOES NOT openabankaccountforaspecificproject.• SAP(FABS)allowsfortrackingincomeandexpenditureforeachindividualproject(bybudgetcode).

E. Exchange rate risks

WhenenteringintoacontractinacurrencyotherthanUSD,theexchange-raterisk,whichcanbequitesignificant,must be managed.

1 Whenpreparingbudgetsforextrabudgetaryprojects,incorporateaprovision(underthedifferentbudgetlinesasnecessary)withinthebudgetproposaltothedonor.Thisprovisionshouldbebasedonyourreasonablejudgment considering the amount involved and the length of the foreign exchange exposure i.e. the duration of contract.

2 Wheresignificantfluctuationsareforeseen,obligateaslightlyhigheramountbutmonitorconstantlywheneveracontractissignedinacurrencyotherthanUSD.

3 Avoidcommittingallfundstobeinapositiontoadjustforeseenexpendituresincaseofsignificantcurrencyfluctuations.

Chapter 8 Resource mobilization

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Resource Mobilization

8.1 Roles and responsibilities

Inthischapter,theprecisestepsinvolvedinresourcemobilizationbyUNESCOstaffaresetout.

ResourcemobilizationisasharedresponsibilitybetweentheProgrammeSectors,FieldOffices,category1institutesandBSP/CFS.Thelattertakesresponsibilityforoverallcoordinationandforavoidingduplication.BSP/CFSshouldbe kept informed of contacts from or with partners and donors.

The role of UNESCO’s Programme Sectors

UNESCOisaspecializedagencyoftheUNwithmultipleanddiversemandates.ItsfiveProgrammeSectorsdifferinsubstantiveorientation,focus,sizeandstructure,whichinturnattractdifferentdonorsandpartners.Thus,tobemeaningfulandrelevant,thestrategymustbedifferentiatedbyProgrammeSectorandbyregion.EachSectormustthereforedesignandimplementaSector-specificresourcemobilizationstrategy,incloseconsultationwithBSP/CFSand the relevant regionaloffices, tobeupdatedonabiennialbasis.Accordingly, eachSector shoulddesignatefromamongitsstaffafocalpointforthedevelopment,implementationandmonitoringofitsresourcemobilizationstrategy.

The role of UNESCO Field Offices

TheanalysisofthevoluntarycontributionsreceivedbyUNESCOin2011demonstratesthecriticalroleofUNESCOFieldOfficesinresourcemobilization:excludingcontributionsreceivedbyUNESCOcategory1institutes,53%weremobilizedbyUNESCOFieldOffices,comparedtothe47%ofvoluntarycontributionsmobilizedatHeadquarters.Itisclearthatagoodpartofresourcemobilizationopportunitiesexistatcountrylevel,andwillbenegotiatedanddecidedinthefield.TotapintosuchopportunitiesrequiremuchclosercooperationbetweenHeadquartersandFieldOfficesbothonprojectdesignandresourcemobilization.Toensuresoundprojectdelivery,thefullrangeofexpertiseandcapacitythatexiststhroughouttheOrganization,notjusttheFieldOfficeconcerned,mustbefullymobilized.

ProgrammeSectors,theBureauofFieldCoordination,andtheBureauofHumanResourceManagementmustensurethatresponsibilityforresourcemobilizationissystematicallyincludedinthejobdescriptionofallDirectorsandHeadsofFieldOfficesandcategory1institutes,andaccordinglytakenintoaccountinperformanceappraisal.

UNESCOFieldOfficesarealsoencouragedtoactivelyparticipateincommonUNcountryprogrammingprocesses,andothercountrybasedplanninggroupscomprisedofthenationalstakeholdersandothertechnicalandfinancialpartners, toassumeanddemonstrate technical leadership in jointUNworkinggroups,andtoengage in jointresourcemobilizationwithnationalauthoritiesandtheUNCTinordertoobtainfundingforjointprogrammes.UNESCOFieldOfficeswillarrangeregularresults-basedbriefingsfordonorsandorganize,asappropriate,fieldtripstovisitprojectsunderexecution,inclosecooperationwithBSP/CFS.

Flexiblemethodswill need to be developed to deploy resourcemobilization expertise and undertake efforts,particularlyincountrieswhereUNESCOisanon-residentagency(NRA).

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In close consultation with UNESCO National Commissions, UNESCO Field Offices may also solicit in-kindcontributionsfromMemberStates,suchasrentfreeofficespaceforprojectpersonnelinMinistrieswhicharetheintendedbeneficiariesofprojectfunds.

Coordination and backstopping by the Division for Cooperation with Extrabudgetary Funding Sources (BSP/CFS)

BSP/CFSisresponsiblefortheimplementationandmonitoringoftheupdatedstrategy,forprovidingadvicetoSectorsondevelopingandimplementingaSector-specificresourcemobilizationstrategyandforfurtherimprovementofUNESCO’soverall resourcemobilizationstrategy.BSP/CFSsystematicallyorganizesconsultationswith individualpartnersanddonors.Withaviewtobuildingdonorcoalitionsaroundcertainpriorityareas,whereverpossible,BSP/CFSwillseektoorganizejointconsultationswithlike-mindeddonors.

Aspartof a structuredeffortofBSPas awhole,BSP/CFSwill designanddeliver training for theProgrammeSectors,andespeciallyfortheFieldOfficestoenhancecapacityforprojectdesignandresourcemobilization.BSP/CFSwill alsofinalizeguidelines for staffmembersoncooperationwith theprivate sectorand rollout specifictrainingonprivatesectorengagementtostaffatheadquartersandinthefield.WorkingcloselywithBFCandtheUNESCO FieldOffices, BSP/CFSwill pilot an initiative to develop resourcemobilization focal points in thelargerUNESCO FieldOffices.UNESCO’s intranet site (ExtrabudgetaryHelpdesk)will be further enhanced as atool toprovideguidancematerialonextrabudgetaryactivitiesandtimely informationonresourcemobilizationopportunitiesincludingupdatedmappingsofdonorprioritiesagainsttheCAP.

The internet site devoted toUNESCOpartners anddonors andmaintainedby BSP/CFS is subject to constantrefinementandformspartofUNESCO’sportal.UpdatesonUNESCO’scooperationwithdonorsandpartnerswillbe posted on the “partners and donors”website.Inthecontextofthe‘PolicyFrameworkforStrategicPartnerships’(Ref.190 EX/21PartII and 190 EX/INF.7)amorestreamlinedapproachwillbeimplementedtotheorganizationofon-linepartnershipresourcesbyprovidingasingleentrypointforpartnershipsonUNESCO’sinternetsite.Similarly,adedicatedintranetsitewillbecreatedfortheprovisionofinformation,toolsandguidancematerialonthefullrange of categories of partners.

New focus of updated Extrabudgetary Resource Mobilization Strategic Plan

• Strengthentraditionalchannelsandmethodsofresourcemobilizationaswellasexpandrangeofdonors;• Prioritizecooperationwithmiddle-incomecountriesandemergingdonors;• ContinuetoadvocateforcontributionstotheEmergencyMulti-donorFund(establishedinDecember2011),

especiallywithemergingdonors;• Establishnewapproachtoprivatesectorpartnershipsaccompaniedbyforwardthinkingfinancingmethods;• MaketheCAPmoreaccessibleandwidelyknowntoUNESCO’spartnersanddonors;• Boostcoordinationwithbilateralgovernmentdonors(particularlywithin-countryrepresentatives);• Furtherexplorepotentialofself-benefittingmodality;• Bolsterprogrammaticpartnershipswithmultilateralorganizations;• EnsureUNESCO’sinclusioninMulti-donorTrustFunds(MDTFs);• PromoteSouth-SouthandNorth-South-Southcooperation.

ExtrabudgetaryResourceMobilizationStrategicPlan(190EX/INF.8)

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8.2 The main steps in Resource Mobilization

3 Pillars of Resource Mobilization

Be Prepared Be Pro-Active Keep BPS/CFS informed

Theprocessofresourcemobilizationcanbebrokendownintoaseriesofdistinctsteps.

Step 1 Analysis of resource requirements

Thefirststepistoestablishwhatisneeded,andhowmuchisneeded.Thequestionsofthevolumeoffinancialresources required, and forwhat are addressed in theCAP. In addition tofinancial resources, in-kindornon-financialresourcesmayalsobespecified,(e.g.particularexpertiseorexpertsinagivenarea,keyknowledge,skills,competences,outreach,aswellascontributionssuchasequipment,technology,ICTsolutions).Thedemandfornon-financialresourcesisparticularlyrelevantwhendealingwith:(i)privatesectorpartnerships;(ii)South-Southcooperationinvolvingthetransferofknow-howfromMiddleIncomeCountries(asopposedtofunds);and(iii)PostConflictPostDisastersituationswhereUNESCO’sinterventionscanbehelpedbytheshorttermsecondmentofexpertsinspecificareasofexpertise.

Step 2 Define UNESCO’s added value

It isimportant,whenarticulatingresourcerequirements,tounderlineUNESCO’saddedvalueinthoseareasforwhichresourcesaresought.Expertise,capacity,fieldpresence,RBMfocus,reputation,visibilityontheground,impartiality and access to networks might be just some examples of the areas to cite or expand on.

ThebenefitsthatUNESCObringstopartnershipsmaybesummarizedasfollows:

• UNESCOhasanestablishedreputationinitsfieldsofcompetenceonwhichisbuiltastrongglobalbrand;• UNESCOisrecognizedasanimpartialinterlocutor,particularlywithingovernmentalandacademiccircles;• With its convening power and global outreach, UNESCO acts as a bridge-builder between local/national

aspirationsandglobalpolicy-makingobjectivesandasachampionforinterculturaldialogue;• Asacatalystfornewthinking,UNESCOcontributestosettinginternationalandnationalagendas;• UNESCO’sexpertiseincertainkeyareasofitsmandateareuniqueintheUnitedNationssystemandthewider

globalarena(e.g.heritage,freedomofexpression,culturalexpressions);• UNESCOcanensuredeliveryinfragilestatesandpost-conflictandpost-disastersituationsandincriticalareas

likeeducation,protectionofculturalheritageorjournalismtraining;• Withitscombinationofexpertiseineducation,thesciences,cultureandcommunication,UNESCOcantackle

complex multifaceted problems of the contemporary world at global, regional and national levels in aninterdisciplinarymanner;

• UNESCOhasatitsdisposalanumberofuniquenetworkswithaccesstogovernments,academia,educationaloutlets, the research community, creative communities and cities, civil society, business corporations andassociations,themediaandarangeoforganizationsoftheUNsystem;

• ManyofUNESCO’sprogrammesandpoliciescommandhighvisibilityandstrongmediainterest.

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Step 3 Selecting a potential partner

Partners and donors should be identified according to their relevant priorities and strategies, aswell as theirgeographicalfocus.Theircapacitytocontributefinancially,technicallyorotherwiseshouldalsobeasignificantconsideration. Partnerships in this case might be developed around anything from project design to implementation orjointresourcemobilization.Ifnecessary,potentialjointimplementingpartnersshouldbetakenintoaccount.Suchpartnersmightincludenationalauthorities,otherUNagencies,UNESCONationalCommissions,aswellasregionalmultilateralorganizationsliketheAfricanUnionorone,orsome,oftheRegionalEconomicCommunitiesinAfrica.Choiceofimplementationpartnermaybedrivenbyfactorssuchastheirdeliverycapacity,complementaryexpertise,anduniqueaddedvalueinaspecificcontext.

Step 4 What form of engagement with potential partners/donors?

Onceyouhaveidentifiedpotentialdonors,itisimportanttoidentifywhattypeofengagementisforeseen.Forexample,istheintentiononlytomobilizefinancialortechnicalresources?Isfundingonlyonecomponentofamore complex and strategic model of engagement with an established donor or are new partners and donors involved?Isitthenamulti-stakeholderpartnership?Forprivatesectorpartnersinparticular,reflecton:(i)therisksandbenefitsofengagement,(ii)thebusinesscaseforengagementand(iii)whatyoucanoffertotheprivatesectorinexchangeofafundingcontribution(visibility,accesstonetworks,participationinhigh-leveleventsetc.)

ThewayinwhichpartnersworkwithUNESCOtakesanumberofdifferentforms,interalia:

• ConsultationontheelaborationofUNESCO’sprogramme• ImplementingUNESCO’sprogramme;• Contributingtothedevelopmentofpolicies,standardsandnormsthatarelinkedtoUNESCO’smandate;• Providingtechnicalassistanceandadvisoryservices;• SupportingUNESCO’sadvocacyandpolicydialogueefforts;• Monitoringofprogressagainstestablishedgoalsandresults;• ProvidingcashcontributionstoUNESCO;• Theprovisionofin-kindcontributions;thiscouldincludesecondedpersonnel,orvolunteers,equipment,or

media related products and services.

IncloseconsultationwithBSP/CFS,themannerinwhichpotentialpartnersanddonorsaretobeengagedshouldbe planned: by whom, when and where? Engagement could be one-to-onemeetings with donors, or jointconsultation. It could be directed fromUNESCOHeadquarters, or be from the field. The participation of thetargetedbeneficiaries and/or implementationpartners, as seen above, should alsobe foreseen if appropriate.Thefirstmeetingscouldbeprogrammedasstand-aloneeventsoronthesidelinesofothereventsorganizedbyUNESCO,oroneofitspartners.

Step 5 How will resources be managed?

Howwill resources bemanaged once they are mobilized?Will it be a Funds-in-Trust or pooledmulti-donoraccounts(SpecialAccounts)?Ifit’sforaprojectoraneventthatwilltakeplacewithinthebiennium,coulditbeprocessedthroughanadditionalappropriation?WillitbedifferentmodalitiestodowithjointUNprogrammingoracombinationofmethods?All thesemodalityquestionsneedtobeclearlyestablishedtaking intoaccountrequirementsandspecificitiesofeachfundingsource.(Thesedifferentmodalitieswillbeexplainedfurtheroninthisguide).

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Step 6 Develop partner/donor specific presentations

Whenseekingresources,developapresentationtailoredtoeachpotentialpartner/donor.ThispresentationcanbeaPowerPointpresentation,oraWORDdocument(whichmaythenbethebasisforaletter).Thefollowing,tonameafewsalientpoints,shouldbetakenintoaccount:

• Key (standard) messages about UNESCO as a whole, avoiding UNESCO-specific jargon and formulatingstraight-forwardmessages;

• Theprogrammeareaandjustificationforinvestinginit;• Priorities shared by UNESCO and the partner/donor (in case of a private sector partner: corporate social

responsibilityactivitiesofthepartnermatchUNESCO’spriorities);• UNESCO’saddedvalueinthegivenprogrammearea;• Reasonastowhythepartner/donorshouldsupportUNESCO(whatcanyouofferandwhatisinitforthe

partner/donor)• Endorsementofthebeneficiary(ifappropriate);• AddedvalueofUNESCO’simplementationpartners;• Formofengagement;• Resourcerequirements.

8.3 Types of Resource and Management Modalities

A. Financial resources

(i) Funds-in-trust agreements

These fundsaredirected towardsaspecificprojectorprogrammeandare identifiedby the fundingsource inunisonwithUNESCO.Adistinctbudgetcodeiscreatedforeachproject.Detailednarrativeandfinancialreportingisprovidedtothedonor.Thedonorretainsownershipofthefundsthroughouttheperiodoftheproject,andmustbeconsultedonanysubstantialmodificationstotheprojectdesignorbudget.Thedonorshouldbeconsultedonthe handling of any savings at the end of the project. Most Funds-in-Trust agreements are limited to a single donor andtiedtoaparticularproject.Multi-donortrustfundsformulti-yearprogrammes,however,arealsopossible.Programmesupportcostsapplyatastandardrateof13%.

(ii) Pooled funding or Special Accounts

Fromadonorviewpoint,andusingtheimpetuscreatedbytheParisDeclarationonAidEffectiveness,thereisever-increasing interest in channelling voluntary contributions towards core budget support or large-scale programmes. UNESCO has established several such pooled fundingmechanisms for a number of its programmes and foritsnormativework.TheSpecialAccountsarenormallymulti-yearandpool contributions fromseveraldonors.UNESCOprovidesconsolidatedfinancialnarrativereportingontheuseofthepooledresourcesratherthanonthecontributionsofindividualdonors.Thedonorhasnodirectinfluenceontheuseoftheircontribution.Programmesupportcostsapplyatarateof10%.

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Thematic funding

There are also a few dedicated Special Accounts which can receive lightly earmarked funding for thematicprogrammespresentedintheCAP.ThismeansthatthereisonepooledaccountforeachProgrammeSector,fiveinall,wherefundscanbeassignedtothematicprogrammesmanagedbythatProgrammeSector.Theseaccountsaredrivenbyaclearmodusoperandiofprogrammaticcoherence,easeofmanagementandefficiency,andseekto avoid keeping any funds dormant.

ToensurethatfundsarespentinaccordancewiththeC/5resultschaincontainedintheCAP,andexpressedtherebytheme,theaccountingforexpendituresundereachSpecialAccountisalsoorganizedbytheme.Inpractice,thismeansthateachthemehasaseparatebudgetcode,andeachSpecialAccountconstitutesthesumtotalof‘thematicbudgetcodes’foreachSector.PreciselytoavoidtheaccumulationofdormantfundsandtomakesureallexpendituresarelinkedtotheC/5resultsprogrammingintheCAP,thereisnomothercodefortheSectorasawhole.Whenfundsaremobilized,theyshouldbeallocated,spentandreportedonbytheme.

Programme Sectors can now go ahead and establish budget codes for each of their sectoral thematic programmes. This can also be done when lightly earmarked contributions are received. Sectors should be careful to avoid any duplicationwithexistingspecialaccounts related to the thematicextrabudgetaryprogrammeswhich, in somecases,aremanagedthroughaspecificintergovernmentalcommittee.

(iii) Additional appropriations to the Regular Programme and Budget

ThesearecontributionsacceptedbytheOrganizationforattributiontotheRegularProgramme.Theymustbeusedup within the biennium and it is not possible to return any balance to the donor. There is no ceiling on additional appropriations, but before proceeding with the additional appropriation modality, there must be a realisticassessmentastowhethertheamountconcernedcanbefullyutilizedwithinthebiennium.Theyareallocatedtoanexistingregularprogrammeactivityoranewly-createdone.Additionalappropriationsareestablishedthroughastandardletterofappropriation.WhilstUNESCOcanprovideanarrativereportontheuseofsuchcontributions,UNESCOcannotprovidefinancial reports fordonors.Additional appropriationsarenot subject toprogrammesupport costs.

B. Secondments and non-reimbursable loans

The Loans and Secondments Programme is oneof the key aspects ofUNESCO’s Partnerships Strategy. Itwasformallyintroducedinthebeginningof2011toprovideaframeworkfortheprovisionofsupplementalexpertiseinUNESCO’sareasofcompetence.Thistakesplacethroughloansorsecondmentarrangements,onthebasisofaspecificneedindentifiedbytheOrganization,inareaswhereUNESCOlacksexpertise,orwherecurrentlyavailableexpertiseneedstobesupplemented,orisnotreadilyavailable.Loansandsecondmentsagreements(BSP/CFSisfocalpointfortheconclusionofthoseagreements)shouldbeintheinterestofUNESCO,fosteringthemutualtransferofknow-howbetweentheOrganizationanditscounterpart(fortheprivatesector,specificconditionstoavoidconflictsofinterestapply).

Loans and secondments may be provided by:

• MemberStates(includinggovernmentalinstitutions);• Non-governmentalOrganizations(NGOs);• Universities;• Theprivatesector;• Category2institutesandcentres.

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LoanedpersonnelprovideservicestoUNESCOforaspecificperiodoftime(ofatleastoneyear;themaximumduration is three years) during which they are placed under the functional and technical supervision of theOrganization.

The non-reimbursable loan The secondment agreement

AgreementwhereUNESCO’scounterpartpaysfullanddirectremunerationtotheloanedpersonnel,includingbenefitsandsocial security. Loaned personnel are independent contractors andarethusnotstaffmembersofUNESCO.

AgreementwhereUNESCO’scounterpartdepositsinUNESCO’saccounttheestimatedcosttocoverthefullremunerationoftheloanedpersonnel,includingbenefits.A“SecondmentExtrabudgetarypost”isfundedbythecounterpart,andsecondedindividualshiredonafixed-termappointment,whichgivesthemthestatusandconditionsofservice of a staff member. The funds from the counterpart are placed in a separate ledger account which will be managed byUNESCOasafunds-in-trust,andonwhichthecounterpartwillreceivefinancialreports.

Priortoenteringintoasecondmentagreement,acostestimateofthesecondmentisobtainedfromBFM.

8.4 Types of Agreement

Thecontributionstobereceivedfrompartnersanddonorsshouldbeformalizedthroughanagreement.BSP/CFSisresponsibleforadvisingon,negotiatingandconcludingtheagreementsonbehalfofUNESCOinconsultationwith the relevant services.

The type of the agreement to be signed depends on some or all the following considerations:

• onthefundsmanagementmodalitywhetherFunds-in-Trust,SpecialAccounts,orAppropriationtoRegularProgramme(PleaseseetheSection8.3)

• on the typeof fundingsource.Thereareagreement templates for formalizingcooperationwithdifferenttypes of partners and donors

• onthetypeofcooperation,andinparticularwhether itrelatestoadhoccooperation linkedtoaspecificproject,ortoamorestructuredarrangementforjointplanning,implementationandmonitoring

All of the standard agreement templates relating to extrabudgetary funding are available from UNESCO’sAdministrative Manual underChapter5“ExtrabudgetaryFundingSourcesandFundsManagementModalities”,(See:http://manualpart1.hq.int.unesco.org/EN/Chap5/Pages/default.aspx).

FortheAdditionalappropriationtotheregularprogramme,theconcernedSectorand/orFOisresponsible.

ThestandardletterofAdditionalappropriationisavailablefromtheAdministrative Manual(Seeitem2.5)

8.5 UNESCO’s Main Donors and Partners

Extrabudgetaryfundingisoftenperceivedbymanyasagenericterm;but,inreality,UNESCO’spartnersrepresentalargeandheterogeneouscommunitywithaveryvariedrangeofindividualprioritiesandprocedures.Itishard,therefore,togiveveryexactinformationonalldonorsastheircompositionandorientationsareevolvingallthetime.Moredetailedandregularlyupdatedinformationonthepreciseprofiles,policiesandproceduresoffundingpartnerscanbefoundattheExtrabudgetaryHelpDeskonUNESCOIntranet.

BelowisabriefdescriptionofthemaincategoriesofUNESCO’spartnersanddonors.

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A. Bilateral Government Donors

CooperationwithbilateralgovernmentdonorsislikelytocontinuetobethebedrockofUNESCO’sextrabudgetarysupportforprogrammaticactivitiesinallregionsoftheworld,particularlyinAfrica.ItisalsolikelytoremainthemainsourceoffundingfortheEmergencyMulti-DonorFund.

The mobilization of support from bilateral government donors is developed through continuous work withPermanentDelegations toUNESCO, throughan intensificationof coordinated cooperation effortswithdonorrepresentatives in capitals, and through increased dialogue and collaboration with the donor community inbeneficiarycountries.

UNESCOhasenjoyedsuccessinmobilizingsignificantresourcesasanimplementationpartnerformajordonorsundertheirbilateralcooperationprogrammeswithspecificcountriesand/orregions.Totapintosuchresources,throughitsFieldOffices,UNESCOisreinforcingitsdialoguewithdonorrepresentativesinsituandplayingapro-activerole incountry-basedcoordinationandplanningmechanismwithothertechnicalandfinancialpartners.Key factors in the management and maintenance of such partnerships are joint planning and review mechanisms for individual projects and programmes and portfolios and the development of multi-annual programming arrangements.Atthelevelofindividualprojectskeyissuesforthemaintenanceofdonorandpartnersatisfactionaretimelyandefficientdelivery,cleararticulationofresultsandeffortstogivevisibilitytotheroleofadonor,andcloselyinvolvethedonorinprojectimplementationinconsultationswithbeneficiaries.

Whilst the programmatic and geographic priorities of traditional OECD Development Assistance Committee(DAC)donorsremainrelativelyconstant,moreattentionneedstobegiventoopportunitiesforcooperationwithemergingdonorsandpartners.Thelatterincludethemiddle-incomecountriesinLatinAmericaandtheCaribbean,Russia,Turkey,thenewEUMemberStates,theGulfStates,China,IndiaandSouthAfrica,andemergingdonorsinSouth-EastAsiasuchasMalaysia,Indonesia,SingaporeandThailand.Asindicatedabove,themajorityofdonorstorespondtotheDirector-General’sappealforcontributionstotheEmergencyFundareemergingdonors.BeyondthecorecontributiontotheEmergencyFund,cooperationlaunchedin2011withChinaonteacherdevelopment,withSaudiArabiaoncultureofdialogue,andwiththeRussianFederationonculturalheritage,demonstratesthesolidpotentialfordevelopingcooperationwithemergingdonorslinkedtospecificUNESCOpriorityprogrammes.TheexpansionofcooperationbetweenUNESCOandtheRepublicofKoreainvolvingasteadyincreaseofannualvoluntarycontributionsfromUSD1.8millionin2006toUSD3.5millionin2012alsooffersapositivemodelforthefuture.Itisfurthercharacterizedbyagradualexpansionoftheprogrammaticscopeofcooperationandthediversificationofnationalfundingandtechnicalpartners.UNESCOFieldOfficesinmiddleincomecountrieswillplayanimportantroleintheseresourcemobilizationefforts.

TheprofileofUNESCO’smainbilateraldonorsisregularlyupdatedbyBSP/CFSandisavailableonthepagedevotedtogovernmentsintheExtrabudgetaryHelpdesk.ForeachdonoryouwillfindachartwithglobalODAfiguresasprovidedbyOECD,achartwiththestatusofextrabudgetarycooperationbetweenagivenMemberStateandUNESCOandadditional information that couldbeuseful forUNESCO’s colleagues seeking support in specificareas.Moreover,thebackgroundandbriefingnoteforeachdonorareavailable

TheseprofilesshouldhelpUNESCOPOs identifyingpotential linksbetweenfundingopportunitiesanddonor’sprioritiesandinterests,aswellaspresentingthemaincooperationmodalities.

Secondments

ThekindofresourcestobemobilizedbyUNESCOarenotonlyofafinancialnature.Throughstrategicpartnershipswithawiderangeofprivateandpublicsectoractors,UNESCOseekstomobilizeknowledge,skills,capacities,visibilityandoutreachthatcanhelptheOrganizationstrengthenthescopeandimpactofitsProgrammes.TheloanofpersonneltoUNESCObypartnersanddonorsisbecominganincreasinglyimportantmodalityforcooperation

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and contributes extensively to knowledge transfer and networking, especially in highly specialized areas ofUNESCO’scompetence.

Shorttermsecondmentsfromstand-bypartnerssuchastheNorwegianRefugeeCouncilplayanimportantrolein strengthening UNESCO’s response in post-conflict and post-disaster situations. Other examples of in-kindcontributionsthatcanbeusefullymobilizedbytheorganizationincludeequipment,orinthespecificcaseofmediacompaniesitcouldincludeeditorialcontent,audiovisualmaterial,orpublicationspaceinprintandonlinemedia.

B. The Private Sector

UNESCO’scollaborationwiththeprivatesectorisnotnew,butthemodelsofpartnershiphavebeenevolving.Newpatternsofdevelopmentinvolvepartnershipsandalliancesshapedbycommonvaluesandsharedpurpose,andboundedbyclearprinciplesthatencourageautonomyandsynergy.UNESCO’spastengagementandcooperationwiththeprivatesectorrevealsadiverse,multi-facetedandevolvingpicture.Itcomprisesanumberofapproachesandrelationships,rangingfromstraight-forwardfundraisingtostrategicpartnerships.

Theterm“privatesector”coversalltypesofbusinessenterprises,includingsmallandmedium-sizefirms,nationaland international corporations, philanthropic and corporate foundations, financial institutions and privateindividuals.

UNESCObenefitsnotonlyfromincreasingfinancialcontributionsfromtheprivatesectortosupporttheeffectivedeliveryof its programmes,but also from its core-competencies suchas technological prowess, aswell as in-kindcontributionsandsecondedpersonnel.TheprivatesectorisavaluablepartnerforUNESCOasitenhancesthevisibilityofUNESCO’spriorityareassuchasGirls’andWomen’seducationorsafeguardingWorldHeritage.Moreover,theprivatesectorisastrongpartnerinUNESCO’sglobalawareness-raisingcampaignsandadvocacyforthecoreprogrammaticprioritiesoftheOrganization.

Therefore,recognizingthereachanduniquecapabilitiesofinnovationoftheprivatesector,UNESCOhasrapidlyexpanded cooperation with its various partners with a view to more effectively drive systemic change and achieve scaleandimpact.Collaborationwiththeprivatesectorwillnotonlyenabletheorganizationtomobilizefinancialresourcesfortoppriorityareasliketheeducationofwomenandgirls,butalsocreateaspacetoleverageknow-how,outreach,advocacyandsustainabilityforUNESCO’spriorityobjectivesandprogrammes.

Bywayofexample,between2010and2012,UNESCOreachedouttonewprivatesectorpartnerstoestablishinnovativeformsofcooperationthat–amongotherareas–harnesstheprivatesector’suniqueoutreachcapability.The cooperationwith someofUNESCO’s long-standingprivate partners including theOffice ofHerHighnessSheikhaMozah,MicrosoftandNokiawerepursuedandbroughttoamorestrategiclevel.Inadditionmajornewprivatesectorpartnershipswere launchedincluding withProcterandGamble,thePackardFoundation,GEMSEducationonteachersandgirlseducation,MalagaFootballCluboninter-culturaldialogueandeducation,GermanSocialFoundationBASFondisasterriskreductionandeducation,PanasoniconWorldHeritageconservationandeducationandwithShenzhenRubyFootballClubontheroleofcultureinlocaldevelopment,andBill&MelindaGatesFoundationonWaterManagementforUrbanPoorinsub-SaharanAfricaandSouth-EastAsia.

Inpartneringwiththeprivatesector,UNESCOhasanumberofdemonstratedcomparativeadvantages:

• BusinesspartnersrecognizeUNESCOasawell-knowninternationalorganizationwithavaluableandglobalbrand,anexcellentreputationinallitsfieldsofexpertise,withaglobalreachandonthegroundpresence.

• UNESCO’smissionandroleonbehalfoftheinternationalcommunityiswellrespectedbytheprivatesectorasisUNESCO’sstandingasanimpartialinterlocutor,particularlywithingovernmentalandacademiccircles.

• UNESCO’swidenetworkofandcredibilitywithgovernments,strategicpartnersandexpertsgloballyandinacademic circles is widely acknowledged as a particular asset.

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• UNESCO is recognizedby theprivate sectoralsoaspossessinga strongconveningpower forhigh-profileinternational events and initiatives.

Inselectingpartners,UNESCOappliesthefollowingcriteria:

• PartnersshouldbecommittedtocoreUNvalues;• EachandeverypartnershouldcontributetotheachievementofUNESCO’sstrategicprogrammeobjectives;• Allpartnersshouldembrace,supportandenact,withintheirsphereofinfluence,asetofcorevaluesinthe

areasofhumanrights,genderequality,labourstandards,theenvironment,andanti-corruption,inlinewiththetenprinciplesoutlinedintheUNGlobalCompact.

The UN Global Compact

In1999,UNSecretaryGeneralKofiAnnancalleduponglobalbusiness leaderstocreatea ‘globalcompact’ inwhichcompaniesagreedtoliveuptofundamentalprinciplesthat,iffullyimplemented,wouldshapetheworldeconomy.Overall,theGlobalCompactpursuestwocomplementaryobjectives:

1. Mainstream the ten principles in business activities around the world2. CatalyzeactionsinsupportofbroaderUNgoals,includingtheMillenniumDevelopmentGoals(MDGs)

Today,withover10,000corporateparticipantsandotherstakeholdersfromover130countries,itisthelargestvoluntary corporate responsibility initiative in the world.

Businesses that join the UNGlobal Compact commit themselves to apply and to regularly report on the tenprinciplescoveringtheareasofhumanrights,labour,theenvironmentandanti-corruption.

Human RightsPrinciple1: Businessesshouldsupportandrespect theprotectionof internationallyproclaimedhumanrights;

andPrinciple2: makesurethattheyarenotcomplicitinhumanrightsabuses.  

LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of the right to

collectivebargaining;Principle4: theeliminationofallformsofforcedandcompulsorylabour;Principle5: theeffectiveabolitionofchildlabour;andPrinciple6: theeliminationofdiscriminationinrespectofemploymentandoccupation. 

EnvironmentPrinciple7: Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;Principle8: undertakeinitiativestopromotegreaterenvironmentalresponsibility;andPrinciple9: encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.   

Anti-CorruptionPrinciple10:Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery. 

TofindoutmoreabouttheGlobalCompactNetwork,itsactivities,membersandnetworkcontactspercountry/region,pleaseconsulttheGlobalCompact’swebsite:http://www.unglobalcompact.org.

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UNESCOwillnotcooperatewithentitiesthat:

• SystematicallyfailtodemonstratecommitmenttomeetingtheabovementionedprinciplesoftheUNGlobalCompact

• Arecomplicit inhumanrightsabuses, tolerateforcesorcompulsory labourortheuseofchild labour,aredirectlyinvolvedinthesaleormanufactureofanti-personnellandminesorclusterbombs,orotherwisetonotmeetrelevantobligationsorresponsibilitiesrequiredbytheUnitedNations

• AreviolatingsanctionsestablishedbytheUNSecurityCouncil• Involveanyproduct,serviceoractivitythatconflictswithUNESCO’smandate,orundermineUNESCO’swork

Inordertofurtherfacilitatethe interactionandpartnershipdevelopmentwiththeprivatesector,UNESCOwillaccompanyitsstrategywitha“GuideforBusinesses”thatwouldserveaspromotionalmaterialcontributingtocross-sectorexposureandovercomingthechallengesofdifferentworkingcultures;itwouldalsoultimatelyhelpmaximizethepotentialandbuildeffectivepartnerships.

C. The European Union

ThecollaborationbetweenUNESCOandtheEuropeanUnion(EU)wasformallysetupfirstwiththeEuropeanCommunitybyanexchangeoflettersin1964andconfirmedbyafurtherexchangein1972-1973.Morerecently,acooperationagreementwassignedin1996andthenrevisedinFebruary2004whenUNESCOaccededtothebroaderFinancialandAdministrativeFrameworkAgreement,knownasFAFA,concludedbetweentheEuropeanCommunityandtheUnitedNationsin2003.

On8October2012,UNESCOandtheEUsignedaMemorandumofUnderstandingwithaviewtostrengtheningthepartnershipbyimprovingdialogueandknowledgesharing,promotingbestpracticesandcreatingsynergieswhereappropriate.TheMemorandumofUnderstandingisbasedontheabovelong-standingcooperationandsetsoutclear,strategicprioritiesonareasofmutualinterestbetweenthetwoorganizations,suchas:educationandculture,includingtheirpotentialasvectorsfordevelopment,scienceandtechnology,maritimepolicy,humanrights and freedom of expression.

Inparticular, itoffersenlargedopportunities fordirectcooperationbetweenUNESCOandtheEU (negotiationprocesswithoutapplyingtoacallforproposals)andalsothroughareinforceddialoguebetweenEUDelegationsandUNESCOFieldOfficesandcategory1institutes.Inadditiontothelong-standingrelationshipwiththeDirectorate-GeneralforDevelopmentandCooperation–EuropeAid(DEVCO),UNESCOshouldalsostrengthenitscooperationwithotherDirectorates-General,notablywiththeHumanitarianAidandCivilprotection(ECHO)inthefieldsofdisasterpreparednessandriskreduction,EducationandCulture,EnlargementandResearchandInnovation.

Wheneligible,UNESCOcanalsoparticipateinEUcallsforproposals(preferablyasCoordinator)butinthiscontext,itiscrucialtoverifybeforehandiftheFAFAapplies.

RecentcooperationwiththeEUhasbeenalsomarkedbytheopeningoftheUNESCOLiaisonOfficeinBrusselsinFebruary2011toreinforcethepartnership.

Themain objective of EU development policy and practice is poverty reduction in the context of sustainabledevelopment.Asstatedinthe‘AgendaforChange’5and‘reformproposalsforEUbudgetsupport’6(2014-2020)madebytheEuropeanCommission,theEUfocusesontwopriorityareas:(1)humanrights,democracyandotherkeyelementsofgoodgovernance,and(2)inclusiveandsustainablegrowthforhumandevelopment.TheEUalso

5 http://ec.europa.eu/europeaid/what/development-policies/documents/agenda_for_change_en.pdf6 http://ec.europa.eu/europeaid/how/delivering-aid/budget-support/documents/future_eu_budget_support_en.pdf

50

strivestofurtherimprovetheeffectivenessoftheaiditdelivers,notablybyensuringthatMemberStatesandtheEUCommissionjointlypreparetheirstrategiesandprogrammes.

Inordertoincreasethedevelopmentaidimpact,theEUfocusesgeographicallyandsectorallyonalimitedrangeofcountriesandareas.Inthiscontext,educationisoneofthepillarstohelpcreategrowthindevelopingcountries.

TheFAFA,theMemorandumofUnderstandingalongwithtemplatesandhelpcardsonworkingwiththeEU,canbefoundontheExtrabudgetaryHelpdeskonUNESCOIntranetandManualItem5.7.

Did you know?

• TheEUattachesmuchimportancetostrengtheningtheUNsystembutisfocusedonclearimpactonfinalbeneficiaries;

• TheEU’s27countriespayapproximately40%ofthetotalUNregularbudget;

• TheEUaccountsformorethanhalfoftotaloverseasdevelopmentaid(ODA);

TheEUandUNESCOsharemanypriorityareasandconcerns,suchasaddressingtheteachersgap,strengtheningthesystemofGovernanceforculture,promotingfreedomofexpression,reenergizingtheintegratedmaritimepolicy.

D. Multilateral Development Banks (MDBs)

ThemajorMultilateral Development Banks (MDBs)withwhichUNESCO cooperates are: theWorld Bank, theAfricanDevelopmentBank (AfDB), theAsianDevelopmentBank (ADB), the Inter-AmericanDevelopmentBank(IDB),theIslamicDevelopmentBank(IsDB),andtheOPECFundforInternationalDevelopment(OFID).Fulldetailsofmultilateraldevelopmentbanksmaybe found in theDirectoryofEconomic,CommodityandDevelopmentOrganizationsontheIMFwebsite.7

The Global Partnership for Education (GPE)

TheGPEstartedastheEducationforAll–FastTrack Initiative (EFAFTI). It isnowcomprisedof46developingcountries, and over 30 bilateral, regional, and international agencies, development banks, the private sector,teachers,andlocalandglobalcivilsocietygroups.TheGPEprovidesUNESCO’sdevelopingcountrypartnerstheincentives, resources and technical support to build and implement sound education plans.Members of thePartnershipmobilizeandcoordinateresourcestosupporttheachievementoftheseplans’targetstohelpmorechildren enrol in school and for a better education.

TheWorldBankandthemajorregionaldevelopmentbanksprovidesomeofthelargestsourcesofdevelopmentfinance, particularly in those areas relevant toUNESCO’smandate and expertise.A significant recent trend isthe growth in the share ofMDB financing that is allocated as grants (as opposed to loans). TheMultilateralDevelopmentBanksalsoadministermajorMulti-donorTrustFunds,suchastheAfricanWaterFacility(AfDB),andtheGlobalPartnershipforEducation.

Therearetwomainwaysofco-operatingwithMDBsatprojectlevel,eitherbyagreementwithaGovernmentforabanktofinanceaproject,orbydirectagreementwiththebankitself.Togiveafewexamples:UNESCOreceives

7 www.imf.org/external/np/sec/decdo/contents.htm

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fundingforprojectsfromtheAfricanDevelopmentBank,theAsianDevelopmentBank,theIslamicDevelopmentBank,andco-financingofupto40percentofthetotalcostofaprojectfromtheOPECFundforInternationalDevelopment.

UNESCOalsoreceivesgrantfinancefromtheWorldBank,butitcannotreceivefundsforprojectsgrantedinthecontextofaWorldBankloanbecauseofdifferencesinrulesonfinancialmanagementandauditing.Similarly,asofyet,amodalityforreceivingfundsfromtheInterAmericanDevelopmentBankhasnotbeenworkedoutbecauseofvaryingrulesonfinancialmanagementandprocurement.Apracticalmodusoperandiurgentlyneedstobeidentified–onewhichcouldreconcileUNprocurementprincipleswithMDBrestrictions–inorderforUNESCOtobe able to exploit to the full the far-reaching potential of programmatic cooperation with multilateral development banks .

E. United Nations

UNESCOhasreceivedsubstantialresourcesfromboththeincreaseduseoftheMulti-donorsTrustFunds(MDTFs)withintheUnitedNationstosupporteffectivehumanitarian,recovery,reconstructionanddevelopmentprocessesandfrom,otherUNAgencies,fundsandprogrammes.TheMDTFisidentifiedasaneffectivefundingmechanismwhich pools and disburses development aid under one administrative structure and designed to offer funding sourcesthatarepredictableandstable.FundingfromUNsourceswillbeimprovedwiththestrategicagreementsalreadyconcludedwithUNDP,UNEPandUNHCRwiththeupdatewithothersUNagenciesbeingunderway.Inaddition,UNESCOhas, inrecentyears,receivedfunds–mainlyforactivitiesrelatedtotsunamimitigationandprevention–fromvariousdonorsthroughtheInternationalSecretariatforDisasterReduction(ISDR)andthroughtheUNESCAPTrustFundforTsunami,DisasterandClimatePreparednessestablished in2005,setoriginally tosupporttsunamiearlywarningthroughamulti-hazardapproach.

Mostrecently,UNESCOhasbecomeanimplementingagencyoftheAdaptationFund.Moreover,theprominentroletobeplayedbyUNESCOunderthenewlyestablishedMyanmarMulti-DonoreducationFundisacaseinpoint.

UNESCO’sactiveparticipation in theUNDP/SpainMDGAchievementFundand in theDeliveryasOneprocesscanprovidelessonsandserveasatake-offpointforthesuccessfulmobilizationofresourcesthroughthistypeofmechanism.ThiseffortwillbeledprimarilybyUNESCOFieldOffices,inthecontextofUNcountryteam(UNCT)activitiesandwithsupportfromUNESCOHeadquartersandRegionalBureaux.

TheextenttowhichUNESCOcanrespondtonationaldevelopmentprioritiesthroughitsownprogrammesandensure their inclusion in jointUN Programmingwill be critical for country-level resourcemobilization. To thatend,UNESCOmustbeswiftandproactiveinidentifyingjointlywithUNCTsentrypointsthatrespondtonationalpriorities, anddeveloping themas substantive inputs to joint programmes. Ensuring that FieldOffices receivepromptadviceandsupport fromProgrammeSectorsoncontent,andfromProgramme-relatedandCorporateServicesonmodalitiesofcooperationwillbecritical,especiallyattheprogrammedesignandstartupphases.

UNESCOmust also contribute actively to the effort led by UNDG to promote joint resource mobilisation byUN  Country Teams. The common budgetary framework provides the basis for any informed joint resourcemobilizationstrategyfortheUNDAF,includingthroughtheoptionofsettingupofaOneFund/CountryFund.Thelessonsfromthe‘DeliveringasOne’pilotsonOneFundofferaspectrumofchoicesandarrangements.

Key entry points and funding opportunities within the UN system

• CommonUNPlanningProcesses(CCAandUNDAF)fordevelopmentcontextsincludingtheDeliveryasOne.• Multi-donorTrustFunds,thepreferredaidmodality inpost-crisiscontextsmainlyandprogressivelyforthe

development contextwith the samebasic principles, structure, governance (steering board composition),

52

allocationproceduresanddegreeofgovernmentalanddonorinvolvement.(RefertoChapter5.5“PartneringwiththeUN”oftheAdministrative Manualfortheinstructionsontheresourcesmanagementmodalities).

OtherResourcemodalitiesmechanismsforpost-crisisandtransitionenvironmentsthatrequireprojects/programmeswhichcanstartquicklyandhaveanimmediateimpact:

1. Humanitarianactivities:IntheUNsystem,forhumanitarianactivities,theprimaryplanningandfund-raisingtoolistheOCHA-ledconsolidatedinter-agencyappealsprocess(CAP).TheCAPisthecommon,interagencyplanning,coordinationandresourcemobilizationmechanismforthehumanitarianresponsetocrisis.

2. Newemerginginstrumentsfortransitionenvironments:Post-ConflictNeedsAssessment(PCNA)andTransitionalResultMatrix(TRM)

3. Emergency Response Funds (ERFs)TherearealsoEmergencyResponseFunds(ERFs)andCommonHumanitarianFunds(CHF).Thesearesmaller,andmoretargeted,pooledfundswhicharekeptatcountrylevel for a more effective allocation of limited resources and a better matching of needs and responses.

ThispooledfundingisallocatedonthebasisofanactionplanbringingtogetherUnitedNationsagencies,theInternationalOrganizationforMigration(IOM)andnon-governmentalorganizations(NGOs).Astrategicandoperationalplanisoftendevelopedwithnational,provincialandlocalauthorities.

Pooling the funds guarantees that the process of allocating resources is closely linked to actual needs on the ground,whichreducestheriskofanyhumanitarianresponsebeingdistortedbypoliticalorotherfactors.

The Democracy Fund (UNDEF) isaninnovativefunddesignedtosupplementexistingUNfundinginstrumentswhich promote and strengthen democracy. Project proposals are submitted online and should mirror the application criteriaandkeyeligibleactivities -aswellas the specificobligations requiredpereach request.8UNagencies,includingUNESCO, canapplyasanexecutingpartnerwith thepartnershipof a localCSO, the implementingagency.

TheFund’sfocusison:

• Democraticdialogueandsupportforconstitutionalprocesses;• Civilsocietyempowerment;• Civiceducation,voterregistrationandstrengtheningpoliticalparties;• Citizensaccesstoinformation;• Humanrightsandfundamentalfreedoms;• Accountability,transparencyandintegrity.

The Central Response Emergency Fund (CERF) is a stand-by fund established and approved by consensus by theUNGAon15December20059 to (i)enablemoretimelyandreliablehumanitarianassistancetovictimsofnaturaldisastersandarmedconflictsand(ii)toachievethefollowingobjectives:

• promoteearlyactionandresponsetoreducelossoflife;• enhanceresponsetotime-criticalrequirements;• strengthen core elements of humanitarian response in under-funded crises

TheCERFwill have up to US $500million, includinga grant and a loan facility. It is funded by voluntarycontributions fromMemberStatesof theUnitedNations,privatebusinesses, foundationsand individuals. It is

8 http://www.undemocracyfund.org/submit.html9 GeneralAssemblyresolution60/124of15December2005onStrengtheningthecoordinationoftheemergencyhumanitarian

assistanceoftheUnitedNations.

53

intendedtocomplement,nottosubstitute,existinghumanitarianfundingmechanismssuchastheUNConsolidatedAppealsbyprovidingseed fund to jump-start critical operations not yet covered by other donors.

The Fund is managed by the Emergency Relief Coordinator (ERC)onbehalfoftheUnitedNationsSecretary-GeneralandwillallowtheUNtoreactimmediatelywhenadisasterstrikesbymakingfundingavailable.UnitedNationsanditsfunds,programmesandspecializedagenciesincludingtheInternationalOrganizationforMigration(IOM)areeligibleforbothgrantsandloansfacilities.

The two components have a number of distinct features:

1. Grant Facility: this component has two windows: rapid response and under-funded emergencies.Inallcases,allocationsfromtheCERFaremadetocoverlife-savingneedsasperdefined,10 and exceptions to this shall be rare and require exceptionally strong justification.

2. Loan Facility: this component is used as a cash flow mechanism allowingUNagenciestoaccessfundsrapidlywhiletheyarewaitingfordonorpledgestobetransferred.Itcanbeusedtore-establishoperations,implement preparedness measures or implement humanitarian programmes which are key but not time-sensitive.

Thisloanfacilityestablishedin1991astheCentralEmergencyRevolving Fund and used to make loans to UNagenciesforemergencyprogrammesbasedonindicationthatdonorfundingisimminent.TheRevolvingFundisnowmanagedseparatelyaspartoftheupgradedCentralEmergencyResponse Fund.Itisprimarilyusedascash-flowmechanismallowingUNagenciestoaccessfundsrapidlywhiletheyarewaitingfordonorpledges

Joint United Nations Programme on HIV/AIDS (UNAIDS)

AstheconveningagencyintheUNAIDSDivisionofLabourforensuringgoodqualityeducationforamoreeffectiveresponse,andasakeypartnerinafurthereightareas,UNESCOcontinuestobeanactiveandengagedcosponsorofUNAIDS,participatinginallregularmeetings,includingthoseoftheCosponsorGlobalCoordinatorsandFocalPoints,theCommitteeofCosponsoringOrganizations(CCO,ofwhich itwillassumetheannualrotatingchairin2013)andtheProgrammeCoordinatingBoard(PCB).Inthefield,UNESCOworksthroughtheRegionalAIDSTeamsand,atcountrylevel,throughtheUNThemeGroupsandJointTeamsonAIDS.UNESCOtakesleadershipinthecoordinationandimplementationoftwokeyUNAIDSinitiatives,EDUCAIDSandtheUNAIDSInter-AgencyTaskTeam(IATT)onEducation.Finally,UNESCO’sworkcontributestowardsdeliveringonthecommitmentsandgoalsoftheUNAIDSStrategy2011-2015.

The UNAIDS Strategy is operationalised through the Unified Budget, Results and Accountability Framework(UBRAF),thesuccessortotheUnifiedBudgetandWorkplan(UBW).TheUBRAFisdesignedtolinkthebudgettotheachievementofclearlydefinedresultsanddemonstratestrongaccountability.UNESCO’scoreUBRAFallocationfor2012-2013isUSD 12.4million.ThesefundsareintendedtoleveragefundingfromUNESCO’sownresources,aswell as fromotherextrabudgetary sources.UNESCO’s coreallocationhas increasedonpreviousbiennia: in2010-2011thecoreUBWallocationwasUSD 12.3million,whilein2008-2009itwasUSD 10.6million.

In UNESCO, coordination of UBRAF funding is the responsibility of the UNESCOGlobal Coordinator for HIVandAIDS, currently Director of theDivision of Education for Peace and SustainableDevelopment. Under thesupervisionoftheGlobalCoordinator,theactivitiestobefinancedunderUBRAFfundingareidentifiedthroughacollaborativeworkplanningprocessthatinvolvesallFieldOfficesandProgrammeSectors.Theprocessatfield

10 “Activitiesthatwithinashorttimespanremedy,mitigateoravertdirectphysicalharmorthreats(whetherviolence,disease,ordeprivation)toapopulationormajorportionthereof.Alsopermissiblearecommonhumanitarianservicesthatarenecessarytoenablelife-savingactivities”

54

leveliscoordinatedbytheRegionalAIDSAdvisors,andallworkplansarereviewedbyanintersectoraltaskteam.Overthelastbiennia,UNESCOhasalsoincreasinglyusedtheUBRAFtostrengthenthetechnicalsupportitprovidestocountriesbyinvestinginhighcalibreregionalandnationalstaffpositions.Finally,UNESCOFieldOfficesmayalsomobilizefundingfromUNAIDSthroughcountrydrivenexercises,particularlyinthe30+UNAIDShighimpactcountries.

F. Other funding sources and modalities of particular relevance in post-conflict and post-disaster situations

UNESCO PCPD Special Account

In2009, theDirector-GeneralofUNESCOestablishedaPCPDSpecialAccount.This isanemergency revolvingfundandisonlymadeavailableinpost-conflictandpost-disastersituations.TheSpecialAccountismanagedbythePCPDInter-sectoralPlatformanditssecretariat.ThefundenablesFieldOfficestoimplementprojectsrapidly,whenprioritizedbytherelevantUNcountryteamunderaUNFlashAppeal,CAPorothercoordinationmechanism.

Stand-by Partners

Stand-by Partners areorganizationswhichmaintain a roster of rapidly deployable staff that canbeplaced atUNESCO’sdisposal,onrequest,tostrengthenitsresponsecapacityinPCPDsituations.InOctober2007,UNESCOandtheNorwegianRefugeeCouncil(NRC)signedaStand-byagreementwhichenabledUNESCOtobenefitfroma large rosterof secondeeswhohadawide rangeofskills inUNESCO’sprogrammaticareas.Asimilar stand-byagreementwassignedinJune2010betweenUNESCOandCANADEM(Canada’sCivilReserve).TheoverallexpertiseprovidedthroughthesedeploymentsisvaluableinstrengtheningUNESCO’sdeliveringcapacityandisalsoacriticalvehicleformutualexchangeofknow-how.Deploymentsareusuallyforaperiodofsixmonths,buttheycanbeextendedonrequest.TheUNESCOguidetostand-bypartnersisavailableontheExtrabudgetaryHelpDesk.

Government of Japan-Supplementary Budget

Each year aroundmid August, Japanese embassies in the fieldmay identify proposals formUN agencies forprojectswhichmeetemergencyneeds,typicallyinpost-conflictandpost-disastersituations.

The chances for successwith thiswindow for emergency fundingwith Japandependon twomain factors –alignmentwithspecificPCPDtypecriteria(describedbelow)establishedforthisfundingandtheexistenceofgoodchannelsofcommunicationbetweenthesubmittingUNESCOFieldOfficeandtherelevantEmbassyofJapaninthefield.Thisdoesn’tmeanthatHeadquartersisexcluded,ratheritpointstotheneedforclosecooperationbetweenHeadquartersandthefieldonbothprojectdesignandresourcemobilization.

Thereisnoguaranteethatthisfundingwindow willbeavailableeveryyear.TheMinistryofForeignAffairsdecideseach year based on the availability of the budget and their international commitment and even when availability offundsisconfirmedthetimeframeforsubmittingproposalsislimitedtojustafewweeks.ThesupplementaryBudgetcriteriamayalsobesubjecttochange.ItisessentialtotakeadvicefromBSP/CFSbeforeeffortsaremadeto try to access funding through this window.

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Supplementary Budget criteria

• Urgency: whyJapanneedstosupporttheprojectimmediatelyandwithinthecurrentfiscalyear,andexplaintheadverseimplications,iftheprojectisnotsupported;

• Unpredictability: why you could not predict what you are going to support to happen

• Necessity: whyJapanhastosupporttheproject–isthereanyrelevantinternationalcommitmentordidJapanmakeanyofficialcommitment?

• Non-substitute:whytheprojectcannotbefundedbyaregularODABudgetofJapanbutbyaSupplementaryBudget.

Chapter 9 Project implementation from donor approval to financial closure of the project

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Project implementation from donor approval to financial closure of the project

Step 1 Plan of Operations

Whenapplicable,aPlanofOperationsisprepared.ThishappensonceafundingagreementhasbeensignedwiththedonororpartnerandisdonebyBSP/CFS,orbytheHeadoftherelevantFieldOfficeorInstitute.ThePlanofOperationsisdrawnupbyBSP/CFSincollaborationwiththeexecutingunitforsignaturebyUNESCOandthebeneficiarycountry.

Formoreinformation,see4.3“Ownershipofstakeholdersincludingapprovalofthebeneficiarygovernment”.

 

PROJECT  IMPLEMENTATION

EXECUTION REPORTING

AOAO

BSP/CFS

BSP/CFS

POPO

BFM/TRS

BFM/TRS

BFM/BMR

BFM/BMR

BUDGET  CODE  CREATION

PRODOCSPLANOPS

FUNDS  RECEIPT

ALLOCATIONALLOTMENT

OBLIGATIONS PAYMENTS

REQUEST  FOR  TRANSFER  OF  

FUNDS

YESUNDP/UNFPA

NO

TRANSMISSION  TO  DONOR

NARRATIVE  REPORT

FINANCIAL  REPORT

Step 2 Allotment of Funds

After signing the agreement and in conclusion of the Plan of Operations with the beneficiary country, theresponsiblePO,incooperationwiththerelevantAO,preparesaworkplanfortheyearincourseinordertorequestthe allotment of the funds to BFM.

BFMthenmakestherequiredchangesinthenextallotmentdocument.Suchare-phasingofthefundsdoesnotrequirenegotiationwith the fundingsourceorwith the recipient,unless itmeansanextensionof theproject

58

period,and/oramajorshiftofbudgetlines.Thiskindofannualrevisionismandatory,butitisoftenneglected.Unless it iscarriedout, it leadstoanaccumulationoffunds intheprojectaccountandmakesexecutionratesappear low.

Ifaproject isunabletoreach itsobjectives,withoutchangesbeingmadetotheoriginalbudget (asapprovedbythedonor),orbecauseofissuesintheoriginalprojectdesign,orbecauseofexternalcircumstanceswithinorbeyondUNESCO’scontrol,acomprehensivebudgetrevisionhastotakeplace.Thismightinvolveachangeintheoverallbudgetvolume,ortransfersbetweenbudgetlinesand,asaresult,itrequirestheagreementofthedonorandtherecipientcountry.SucharevisionshouldbeinitiatedassoonasthePObecomesawareofdifficulties.Anymajorrevisionofthebudgetnormallyalsorequiresamodificationoftheoriginalprojectdocument,which,inturn,necessitatestheagreementofthefundingsourceandthebeneficiary.Asdescribedabove,BSP/CFSisresponsibleforseekingtheseapprovalsaftertherevisionhasbeengivenavisabyBFMinSISTER.

These are the main steps from signing the funding agreement to the allotment of funds by BFM:

BFM confirms the receipt of the funds and credits the funds to the project budget code after consultat-ion with BSP/CFS

BFM creates budget code and makes the budget allocation

Project agreement signed with donor

BSP/CFS requests creation of budget code via SISTER to BFM

PO provides BFM with the workplan break-down for the year in course

BFM allots for the year according to the annual workplan

PO can begin spending the funds for the project implem-entation

Step 3 Contracting

Themaintasksinvolvedinimplementationcanbebroadlysummedupasfollows:providepersonnelassistance,drawupsub-contracts,organizetraining,procureequipmentandsupplymiscellaneousservices.Allthesetasksshould correspond clearly to components of the project budget. Implementation alsomeans keeping an eyeoncoordinationissues,monitoring,assessing,implementingfollow-upandcorrectivemeasurestoensureresultattainment without forgetting the need to align and ensure that implementation contributes to the results stipulated intheappropriateC/5MLAor Intersectoralplatform.Furthertasks includecommunicatingwiththedonor/partner via BSP/CFS and the beneficiary country, preparing periodic narrative reports and including thecontributionoftheprojecttotheregularEX/4andC/3reportstotheExecutiveBoardandtheGeneralConference.

Besidesmanagingfunds,drawingupcontracts,procuringequipment,carryingoutpaymentsandundertakingbudgetrevisions, the implementationofaprojectmayalsorequirerecruitment. InconjunctionwithHRM,thismeansidentifyingandrecruitingpersonneland/orconsultants.Afterrecruitment,thepersonnel’sworkneedstobemonitoredandsupervisedandtrainingorganizedifnecessary.TherelevantPOshouldplananannualmissiontothefieldtoassesstheadvancementoftheprojectandshouldcostforthisinthebudget.

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Step 4 Completion of project activities

Once a year, the PO,with the relevantAO, prepares a revised budget and workplanwhich reflects actualprogressoftheproject.ThisissubmittedtoBFM.Thetransferoffundstotheproject,andtheissuanceofnewallotments, takesplaceon thebasisof theapprovedupdatedbudgetandworkplan.Mostdonorsmake thetransfer of subsequent instalments of funds conditional upon satisfactory narrative andfinancial reporting. Inordertoallowasmoothimplementationoftheproject,itisvitalthatthesereportsarepreparedandsubmittedinatimelymanner,andthattheyremainofhighquality.

The POprepares an annual (ormore frequently, if requestedby the funding source)progress report on the projectinaccordancewiththereportingscheduleforeseenintheprojectdocumentandfundingagreement,aswell as a final reportafterthecompletionoftheproject.This,too,hastobeinlinewiththetermsofthefundingagreement.Inadditiontotheprogressreports,thePOmayhaveto,uponrequestbyBSP/CFS,prepareashortimplementation status report prior to each formal review meeting with the funding source. This should provide updatesonthemostrecentprogressreport,andprovidesuggestionsondecisionstobemadeduringthemeeting.TemplatesforallthreekindsofreportsareavailablefromtheExtrabudgetaryHelpdeskandarealsoincludedintheAnnex.

Evaluations(internalorexternal)ofallXBactivitiesirrespectiveoftheirdurationshallbeensureduponcompletionoftheproject,implyingthattheoriginalprojectdesignandbudgetmusttakethisintoaccount.

Step 5 Liquidation of obligations

Beforeclosingtheproject,thePOneedstoworkwithhis/herAOtomakesurethatalloutstandingobligationsareliquidated.

Ifanysavingsareleftintheprojectaccount,BSP/CFSisrequestedtocontactthedonortoagreeonthehandlingofthesefunds.Thebalanceoftheaccountneedstobeatzerosoafinalfinancialreportcanbeissued.

Ifdeficitsoccur,andthefundingsourcedeclinestoprovideadditionalfunds,theimplementingSector,FieldOfficeor Institutemaybeheld responsible forcoveringthedeficit.Therefore,certifyingofficersof the implementingunits should be reminded that Financial Rule 5.5b stipulates that they are responsible for ensuring that funds areavailableonthecorrespondingbudgetcodesbeforeauthorizinganobligation.Fullcompliancewiththisrulewouldgenerallyminimizetheriskofoverspending.

Step 6 Final narrative report

Afinalnarrativereport,includinganevaluationoftheprojectbythePO,isrequiredforallextrabudgetaryprojects,andshoulddescribethemainresultsoftheproject/programme,aswellasitsmostimportantfindings(seeChapter9“MonitoringandEvaluation”).Thereportshouldnotprovideahistoricalnarrativeoftheproject,butconcentrateon themain achievements, andhow thesehave contributed to the attainment ofC/5 results, any difficultiesencountered,lessonstobelearned,andconclusionsandrecommendationsforthefuture.

ThefinalreportisnormallypreparedinEnglishorFrenchassoonaspossible,andnolaterthanthreemonthsaftertheprojectisoperationallyterminated,bytheresponsiblePO,whotakesfullresponsibilityforthetext,evenifitisbasedonadraftfromtheChiefTechnicalAdviserorlocalprojectmanager.Followingreviewandapprovalbythe

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DirectoriftheProgrammeDivisionatHQortheHeadoftheFieldOfficeorInstitute,thedraftfinalreportmustbesenttotheEOoftheimplementingProgrammeSector,whichexercisescontrolofthecontentandqualityofthereport,includingitscompatibilitywiththeappropriateguidelines.Basedonthisassessment,thePOmayberequestedtoundertakemodificationsinthepresentation.Whenthetextisfinalized,andthevisaoftherelevantProgrammeSectorEOisprovided,thefinalreportissubmittedtoBSP/CFSfortransmissiontothefundingsourceandIOSatthefollowinge-mailaddress:exbudgevaluations@unesco.org.

Step 7 Final steps before project closure

Thefinalphaseaftercompletionofextrabudgetaryproject/programmeoperationalactivitiesinvolvesthefollowingessential steps:

• ThePOmonitorsandprovidesinformationontheterminationofactivities;• TheAOliquidatesoutstandingpaymentsandobligations;• BSP/CFSrequestBFMtoissuethepre-finalfinancialreport.Whenthepre-finalfinancialreportisready,BSP/

CFSsendsittothedonor,usuallywiththefinalnarrativereportandrequestsinstructionsonthehandlingofthebalance.AtthattimethePOneedstoindicateinSISTERthattheXBProjectis“Completed”.Oncethebalancehasbeenremittedtothedonor(ortransferredtoaGeneralFund,oranotherprojectforexample,andtheaccounthasbeenbroughttozero,BFMcanissuethefinalfinancialreport;

• ProposalbythePOonthetransferofownershipofprojectmaterialandequipmentaswellaspossiblesavings/deficits(againinconsultationwithAO);

• ProposalreviewedbyBSP/CFSandforwardedtodonor;• OncethefinalfinancialreporthasbeenissuedbyBFM/BMR,theprojectaccountisformallyclosedbyBFM/

PRG.BSP/CFSsendsthefinalreporttothedonor.

PROJ E C T  C L OS URE

CLOSING REPORTING

BS

P/C

FS

BS

P/C

FS

BF

M/B

MR

BF

M/B

MR

BF

M/B

MR

BF

M/B

MR

AOAO

POPO

YE S

NO

L IS T  O F  E QUIP ME NT  T O  B E  HAND  O VE R  T O  

T HE  B E NE F IC IAR Y

F INAL  F INANC IAL  R E P O R T

C L O S E S  T HE  P R O J E C T  IN  

F AB S

T R ANS MIS S IO N  T O  DO NO R

G E NE R AL  F UND

L IQUIDAT IO N  O F  AL L  

O UT S T ANDING  O B L IG AT IO NS

F INAL IS AT IO N

F INAL  S UB S T ANT IVE  

R E P O R T  

T R ANS F E R  R E MAINING  

F UNDS

T ransfer  to  the  G eneral  F und

Donor  bank  account

ANO T HE R  P R O J E C T

In  accordance  with  the  Donor’s  Agreement

 

Chapter 10 Monitoring

62

Monitoring

10.1 Results Based Monitoring by the Project Officer (PO)

Monitoring canbedescribedascontinuingfunctionthatusessystematiccollectionofdataonspecifiedindicatorsto provide management and the main stakeholders of an ongoing development intervention with indications of the extent of progress and achievement of objectives and progress in the use of allocated funds.11

InaccordancewiththeprinciplesofRBMonwhichUNESCO’smonitoringsystemsarebased,monitoringprovidesthe opportunity to

• Reviewassumptionsmadeduringtheplanningprocesstoensuretheystillholdtrue;• Trackprogressinthefullorpartialachievementofresultsbasedonpre-definedperformanceindicatorsand

associatedquantitativeand/orqualitativetargets;• Decidewhethertheoriginalstrategiesarestillappropriateandshouldbecontinuedormodified;• Makenecessaryadjustmentstoresources,bothhumanand/orfinancial.12

It isessentialtoinvolveinthemonitoringexercisethestakeholdersofagivenprogrammeorprojecttoensureownership,capacitybuildingandtheoverallsustainabilityoftheproject.

Themainpurposesofmonitoringaretoprovideforadjustmentstobetterachieveexpectedresults,tocontributetodecisionmaking,butalsoforaccountabilitypurposes.Inthecaseofextrabudgetaryprojects,thataccountabilityincludesUNESCO’sresponsibilitytothedonor.InpracticethismeansthatinadditiontomeetingUNESCO’sinternalmonitoringrequirements,UNESCOshouldalsosharewiththedonortheinformationacquiredthroughmonitoringintheformofnarrativeandfinancialreports.

Theanalysisofprogresstowardsexpectedresultsshouldbeattheheartofthemonitoringofqualitativeaspectsof project implementation.

For internal purposes, since arrangements were completed in 2011 for integrating extrabudgetary projectsin SISTER, the latterhasbecome themainplatform for thequalitativemonitoringof extrabudgetaryprojects.Completionofmonitoringinformationonasix-monthlybasisismandatory.Foreachproject,responsibleofficersarerequiredtofill inprogressonexpectedoutputs/deliverablesandresults,challengesandlessonlearntintheimplementation, cost-effectiveness and efficiency measures, and contribution of the project to C/5 expectedresults. Please refer to the RBM Monitoring and Reporting Guidelines available at http://unesdoc.unesco.org/images/0021/002159/215988E.pdf.

Thisinformationwillobviouslyalsoneedtobecapturedinnarrativereportingtodonors,althoughthefrequencyandtimingofmonitoringwillbedeterminedintheprojectagreementandwillfollowthecycleofthatspecificproject, andnotnecessarilyUNESCO’s cycle.A standard template for anarrativeprogress report todonors isattachedinANNEXIIoftheGuide.Astandardtemplateforafinalnarrativereportincludingaself-evaluation(seeChapter11)isgiveninANNEXIIItotheGuide.Itismandatorytosubmitafinalnarrativereportoncompletionoftheproject.Theself-evaluationexerciseattheendoftheproject,resulting inthefinalnarrativereport,willgeneratethenecessarydataforthelastsubmissionintoSISTER(six-monthlyreporting),sothereisnoduplicationof efforts.

11 OECD/DACRBMGlossary12 RBMProgramming,ManagementandMonitoring(RBM)approachasappliedbyUNESCOandUNDGRBMHandbook

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Another important vehicle for the jointmonitoring byUNESCOand its donors, andparticularly those donorsandpartnerswithwhomUNESCOhasamorestructuredrelationshipareannualreviewmeetings.Duringtheseexercises,acomprehensivereviewofthefullportfolioofprojectswithagivendonor,supportedbyfinancialandnarrativereportingforeachproject,isconductedinthepresenceofthePOsandthefundingagencies.BSP/CFSwillinforminadvancePOs,SectorEOs,BFMoftheyearlyscheduleofreviewmeetings.

PO prepares implementation status report on on-going projects.

DonorreviewmeetingsareconductedandcoordinatedbyBSP/CFS.Follow-uptodecisionsofreviewmeetingismonitoredbyBSP/CFS.

UNESCO’smajordonorshaverepeatedlymadeitveryclearthatUNESCO’scapacitytoclearlyarticulatetheresultsachievedwillbeacriticalfactorindecisionsbydonorsastowhethertosupportUNESCOornot,soqualityofnarrative reporting is of the upmost importance.

10.2 Monitoring financial aspects of project implementation by the PO

POs are also responsible formonitoringfinancial aspects of project implementation, and for taking correctiveactionwherenecessary,notablywithregardtotwokeyfactors:

• Arefundsbeingimplementedaccordingtoplan,andifnot,whatfactorshaveimpededprojectimplementation?• Areobligationsundertheprojectbeingliquidatedinatimelyway,andifnot,whatfactorshaveimpeded

disbursement ?

The Sector Alert System

For internalmonitoring purposes, the Bureau of FinancialManagement produces and distributes house-widequarterly reportson thefinancialperformanceofallextrabudgetaryprojects.This information isan importantinputtotheAlertSystemmanagedbyeachSectorwhichisdesignedtoidentifyunderperformingprojectsandensurethatswiftremedialactionistaken.SincetheintroductionoftheSectorAlertSystemin2008,thenumberofdormantprojectsatanygiventime,hasbeenreducedsignificantly.

In preparation of the quarterly sector reviews, the AO should request BFM to identify projects that presentquantitative disbursement problems; and the EOwill identify projects that present qualitative implementationproblems.BasedonfurtherinformationfromthePOsonthebackgroundfortheproblems,alistofprojectsthatneedtobepresentedtotheSectorADGfordecisiononremedialactionwillbeidentifiedbytheSectorAOandEO. RemedialactionagreeduponwillberecordedinFABSandSISTER.BSP/CFSwillbeaskedtoseektheapprovalofthefundingsourceifrequired.

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10.3 Monitoring and review by senior management

The monthly Senior Management Team Financial Report contains an analysis of implementation of extrabudgetary resources. In addition, the various management committees (Programme Management Committee and theCorporateServicesCommittee)periodicallyreviewthestatusofexecutionofextrabudgetaryactivities.

10.4 Reporting to UNESCO’s governing bodies

Reporting to the Executive Board by BSP/CFS (with BFM)

KeystatisticalfiguresonextrabudgetaryactivitiesduringtheprecedingyeararepresentedtotheExecutiveBoardbyBFM,normallyaspartoftheManagementChart.

SummaryreportsarepreparedbyBSP/CFS,highlightingthemainfeaturesoftheprecedingyear’sextrabudgetaryactivities,andinscribedasanagendaitem,foreachfallsession.

Reporting to the General Conference by DG (upon proposal from BSP/CFS)

SummaryreportonthemainfeaturesofUNESCO’sXBprojectsispreparedandinscribedasanitemintheagendaofeachsessionoftheGeneralConference.

Furthermore, every sixmonths a formal house-wide assessment is carried out of the regular programme andextrabudgetary activity results attained on the basis of performance indicators and associated baselines and quantitativeand/orqualitativetargetssoastodefinehowtheseresultshavecontributedtotheattainmentofhigher-level C/5 results, and identify challenges and lessons learned, including cost-effectiveness/efficiencymeasures.

This information is accompanied with the Regular Programme core operational costs and extrabudgetary resources foreachC/5result.ThisassessmentexerciseservesasabasisforanoverallstrategicassessmentofUNESCO’sMajorProgrammes and their contribution towards the attainment of the Overarching Objectives and associated expected outcomesdefinedintheMedium-TermStrategy.Finally,alongwiththisoverallstrategicassessmentareportisalsoprovidedtothegoverningbodiescontainingthebudgetaryandfinancialstatusofprogrammeexecutionofbothregular budget and extrabudgetary resources.

Chapter 11 Evaluation

66

Evaluation

11.1 Basic definitions14

Evaluation: the systematic and objective assessment of an on-going or completed project, programme orpolicy,itsdesign,implementationandresults.Theaimistodeterminetherelevanceandfulfilmentofobjectives,developmentefficiency,effectiveness, impactandsustainability.Anevaluationshouldprovide information thatiscredibleanduseful,enablingthe incorporationof lessons learned intothedecision–makingprocessofbothrecipientsanddonors.Evaluationalsoreferstotheprocessofdeterminingtheworthorsignificanceofanactivity,policyorprogramme.Anassessment,assystematicandobjectiveaspossible,ofaplanned,on-going,orcompleteddevelopment intervention.13

11.2 Additional guidance and definitions on evaluation of UNESCO extrabudgetary activities

11.2.1 Modalities for evaluation

There are three different modalities for evaluation:

1. Self-evaluation: an evaluation conducted by those who are entrusted with the design and delivery of the project(thePOorsector/category1institute/fieldoffice),andpresentedina final narrative report.

2. Self-evaluation with validation by external expert:anevaluationconductedbythePO(orsector/category 1institute/fieldoffice),resultingina final narrative report with validation by an external expert.

3. External evaluation: an evaluation conducted by independent entities14and/orindividuals outsidethedonorandUNESCOelectedthroughacompetitiveprocessresultinginan external evaluation report.

Theself-evaluation(andwhenapplicabletheexternalevaluationaswell)willgeneratethenecessarydataforthelastsubmission intoSISTER(six-monthlyreporting),sothere isnoduplicationofefforts. Intermsofdepthandscopeofassessmentthe(self-)evaluationexerciseismoreelaboratethantheperiodicmonitoringandreporting.Asaresult, it is importantthatappropriateresources(humanandfinancial)arereservedforundertaking(self-)evaluation.

13 Source:OECD-DAC(2010)14 IncludingIOS

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11.2.2 How to select the right modality for evaluation for a given project, programme or partnership

A. The volume of the project

Self-evaluation ProjectsunderUSD500 000Partnershipwithnofinancialimplication

Self-evaluation with validation by an external expert ProjectswithabudgetbetweenUSD500 000andUSD1 500 000

External evaluation 15 ProjectsoverUSD1 500 000

15

B. Other considerations

Thebudgetthresholdsprovidethedefaultguidanceonwhattypeofevaluationrequirementapplies.However,other criteriamaydetermineevaluation requirementsorexemption from (self-/external) evaluation for specificprojects:

• Type of extrabudgetary project• Innovativenatureoftheextrabudgetaryproject• Decisiononaportfolioapproach(poolingallevaluationfundsforasetofsimilarprojects)• Specificdonorrequirements

Incaseofdoubtabouttherequiredevaluationmodality,sectors/category1institutes/fieldofficesshouldconsultwithIOS.

Financial implications of extrabudgetary evaluations

The planning of evaluations should be undertaken at the project design phase. The chosen evaluation modality shouldbedescribedintheprojectdocument.Thecostimplicationslinkedtostafftime,ortherecruitmentofanexternalevaluator,shouldbeincludedintheprojectbudget.Thetableoverleafgivesanoverviewoftheindicativecost implications.

Inaddition,forexternalevaluationstheadviceofIOSshouldbetakenbeforedevelopingthebudget,becausethecostofanexternalevaluationwillbedeterminedextensivelybythecomplexityoftheproject,andothervariablessuch as the geographic scope of the project. The scope of an evaluation may similarly be determined by the budget ceiling established by the donor for this cost component.

Inadditiontoproject-specificevaluationprovisions,sectors/category1institutes/fieldofficesareencouragedtopool(someof)thefundsforevaluation,whichcanthenbeusedtoevaluateaclusterofextrabudgetaryprojects,forexampleinsituationswhereadonorfundsmultipleprojectsunderabroaderframeworkagreement,orstrategicpartnership.Suchevaluationswilllookattheaddedvalueandimpactofapartnership,orframeworkagreementperse,overandabovetheindividualprojectsimplementedinthecontextofthepartnership.

15 Thecost-effectivenessofexternalevaluationscanbesignificantlyenhancedifaself-evaluationexerciseiscarriedoutpriortotheexternal evaluation.

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The following two principles are recommended:

• Anoverallprovisionof1%ofthetotalbudgetearmarkedforexternalevaluation.Thesefundscanthenbeusedforexternalvalidationofself-evaluationsand/orexternalevaluationsofindividualprojectsand/orexternalevaluationsofclustersofprojects.IOSmaystepintomanage/conducttheseevaluationsifdeemednecessary.

• Ontopofthat,evaluationprovisionsinbudgetsofindividualprojects(undertheframeworkagreement)shouldbemandatoryandreflectcostrecoveryofstafftimeforself-evaluation(presentedinafinalnarrativereport).

Summary table of cost implications

Self-evaluation CostrecoveryofUNESCOstafftime

Self-evaluation by an external expert USD10 000–20 000

External evaluation USD25 000–50 000

Framework agreement/strategic partnership1%oftotalresources(inadditiontocostingofevaluationwithinindividualprojects)

Programmesornormativeworkfinancedthroughspecialaccountsshouldalsobesubjecttoevaluation.Giventhevastdifferencesinthesize,scopeandresourcesofsucharrangements,theadviceofIOSshouldbetakenonacase by case basis.

11.3 Roles and responsibilities for extrabudgetary evaluations

Sectors/Field Offices/category 1 institutes

• Ensuringthatprovisionsforevaluationareincludedinprojectdocumentsandbudgetsatthedesignphase• Monitoring of projects• Conductingself-evaluationexercises• (whenapplicable)Commissioningexternalevaluations• Asinthecaseoffinalnarrativereports(fromself-evaluations),externalevaluationreportsneedtobesubmitted

to: exbudgevaluations@unesco.org.

BSP/CFS

• Providing guidance and backstopping on: – Evaluationprovisionsindonoragreement/projectdocument – ReferraltoIOSofquestionsrelatingtoevaluationmodalityand/orexemption

• Submittingself-evaluation/externalevaluationreportstodonor

IOS

• Providing guidance and backstopping on: – Costingofevaluations – Evaluationmodalityand/orexemption – ToR development and selection of external evaluators – Evaluationmethods,processandplanning – Qualityassuranceofreports

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• Maintaining a database on evaluation reports• Developing guidelines on evaluation • Conductingspecificprojectorportfolioevaluationswhendeemednecessary• Conductingaggregateanalysesonevaluationreports

It shouldbenoted thatbothBSP/CFSand IOSareessentiallyperformingadvisory tasks in theextrabudgetaryevaluationsystem.Theprincipalresponsibilityforplanning,ensuringfundingfor,andimplementingevaluationsofextrabudgetaryprojectslieswiththeSector/category1institute/FieldOffice.

Annexes

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Annex I Project document template

Project title

UNESCO Contact: ResponsibleOfficer(thepersonwhowillhaveultimateresponsibilityandbeaccountablefordeliveringthisproject)–Division,FieldOffice,institute

BSP/CFSContact16

Office Address:

Website address:

Geographical scope/benefitting country(ies):

Duration (in months):

Total funding requested:

Partner(s) institutions: NationalImplementingagencies,NGO(s),multilateralandbilateralpartners.

Executive Summary:

In120wordsorlesspleasesummarisetheobjectivesandactivitiesofyourproject.

• Issue(s)tobeaddressed:• Development objectives to which the project will contribute • OverallGoal/Objective• Main expected results• Activitiesandoutputs/deliverables• Main modalities of action

16

16 Thiscanbeaddedatalaterdatewhenaspecificdonorhasbeenidentified.

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1. RATIONALE AND BACKGROUND

Outlinetheoverallpurposeoftheproject,thetargetbeneficiariesandtheexpectedoutcomes

1.1 Overall Purpose What is the project aiming to achieve?

Relevance Whyisthisprojectneeded?Clearlystatetheproblemthisprojectwilladdressandtheevidencebaseforitsjustification.Explainhowtheprojectrespondstoassessedneedsandproblems(inthecountry/region/globally17.Ifappropriaterefertothepolicypriorityor(ODA)strategyofthedonorwith which the project is aligned.

WhyUNESCO?Please

(i) explainwhyUNESCOiswellplacedtoaddressthis(these)issue(s)(forexample with regard to its comparative advantage and previous track recordindeliveringsuchprogrammes)and,

(ii) howthisprojectwillcomplementexistingUNESCOprogramme(s),and/orbuildonpreviousachievements(refertotheexpectedresultunderUNESCO’sregularProgrammeandBudgettowhichthisprojectwillcontribute).

(maximum500words)

1.2 Beneficiaries and other Stakeholders Whoarethedirectbeneficiaries?

Who are the other key stakeholders affected by the problem and who arethestakeholdersinfluentialinsolvingtheproblemandhowhavebeneficiariesandstakeholdersbeenincorporatedandinvolvedinprojectdesign and delivery?

Ownership:Whatcriticalmeasuresaretakenforensuringtheownership,rights,interests,opportunities,needsandparticipationofthekeybeneficiarygroups?

1.3 Overall and specific objectives What is the desired change that the project intends to bring about? Outlinetheoverallaimoftheproject,statespecificobjectives,expectedimpact and long term legacy.18

17 18

1.4 Expected results and outputs/deliverables

Performance indicator (PI)(a maximumofthree)

Meansofverification(M)(datasource)

Quantitativeand/orqualitativetarget(T)(onthe basis of baseline data(b))

Expected Result N°1 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Activity 1

Output/deliverableN°1.1 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Output/deliverableN°1.2 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Activity 2

Output/deliverableN°1.3 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Expected Result N°2 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Activity 3

Output/deliverableN°2.1 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

Output/deliverableN°2.2 PI1:PI2:

M 1:M 2:

T1and(b1):T2and(b2):

17 Depending on the scope of the project.18 PleaseseeRBMasappliedbyUNESCO.GuidingPrinciplesathttp://unesdoc.unesco.org/images/0017/001775/177568E.pdf and

theUNDGResultsBasedManagementHandbookathttp://www.un.cv/files/UNDG%20RBM%20Handbook.pdf

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2. APPROACH AND METHODOLOGY

2.1 Implementation strategy Overall Strategic Approach

Howwilltheprojectobjectivesbeachieved?Clearlydescribetheoverallstrategic approach to be followed.

Howisgenderequalityaddressedintheapproach?

Description and sequence of activities19

Whatarethekeyactivitieswhichwillleadtotheoutputs/deliverablesandresultsdescribedabove?Howwilltheactivitiesleadtotheoutputs/deliverablesandexpectedresults?Withregardtothelatter,describetheinterventionlogictoachievedesiredobjectives–beginningwithinputs,movingthroughactivitiesandoutputs/deliverables,andculminatingintheexpected results.20

PleaseincludeaworkplanasAnnexB(seeenclosedformat).

2.2 Risk analysis and mitigation Pleaseoutlinethemainrisks(physical,environmental,political,economicandsocialrisks)tosuccessfuldeliveryofthisprojectandachievementofitsobjectivesindicatingwhethertheyarehigh,mediumorlow.

Howwilltheserisksbemitigated?Iftherisksareoutsidetheproject’sdirectcontrol,howwilltheprojectdesignaddressthem?Howwilltheserisks be managed?

2.3 Sustainability and exit strategy Howwillthebenefitsoftheprojectbesustainedafterfundingandthetechnical support provided under the project have come to an end?

Whataretheassumptionsand/ormechanisms(e.g.capacitybuilding,institutions,fundingarrangements,transferofresponsibilities)putinplaceregardingthecontinuationofactivitiesandbenefits(outputs/deliverables,results)afterthefundinghasceased?

Whattoolsandprocesseswillputinplaceregardingthereplicationand/orscaling-up of activities?

1920

19 Intheeventthatit isnecessarytoundertakeaneedsassessmenttocompleteprojectdesignand/ortobeabletopresentadetailedbudget,usethefollowingformula“(X)monthsafterthestartofprojectactivities,whenthesituationiswellassessed,arevisedlogframeandmoredetailedbudgetwillbesubmittedtothedonorforapproval”.

20 Formore informationon the ‘resultschain’ seeP.12of“RBMasappliedbyUNESCO.GuidingPrinciples”athttp://unesdoc.unesco.org/images/0017/001775/177568E.pdfandP.12to15ofthe‘UNDGResultsBasedManagementHandbook’athttp://www.un.cv/files/UNDG%20RBM%20Handbook.pdf

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3. PROJECT MANAGEMENT AND IMPLEMENTATION

Whowillbecarryingoutthedifferentprojectactivities?(OutlinetheprojectimplementationandmanagementarrangementsincludingacleardescriptionoftherolesandresponsibilitiesofUNESCOandeachofthepartners).

4. MONITORING, EVALUATION, LESSON LEARNING

4.1 How will the performance of the project be monitored and evaluated?21,22

4.2 Howwillyouinvolvebeneficiariesandotherstakeholdersinmonitoringand evaluation? NB:pleaseremembertoincludeadequateprovisionsformonitoringandevaluationinthebudget,inaccordancewiththeavailableguidelines.

21 22

5. VISIBILITY

5.1 How will the proposed project contribute to raising the visibility ofUNESCOandthedonorintheprojectarea:describetheoverallcommunicationstrategy/approach(e.g.mediacoverage,useofthelogoonthepublications,andotherdisplaysofthedonor’ssupport,participationofthedonorinprojectevents,jointpressconference,exposureonUNESCO’sorotherwebsites).

21 Monitoring, reporting and evaluationprocesses and tools should be designed to capture informationon activities, outputs/deliverablesandexpectedresults.Attheoutput/deliverableandexpectedresultslevelsadequateprovisionsfordatacollectionshouldbemadecoveringallperformanceindicators(withassociatedquantitativeand/orqualitativetargets),startingwithabaselineforeachperformanceindicator.Informationonkeyperformanceindicatorsshouldbecollectedperiodicallyinordertotrackprogresstowardsprojectimplementation,output/deliverabledeliveryandachievementoftheexpectedresults.Pleasereferto(a)themonitoringand reporting guidelines available at http://unesdoc.unesco.org/images/0018/001887/188713E.pdfand(b)theGuidanceNoteonEvaluationof07.11.12(http://portal.unesco.org/intranet/ev.php?URL_ID=14571&URL_DO=DO_TOPIC&URL_SECTION=201).

22 Ifappropriate,indicatethespecificreportingrequirementsestablishedbythedonorandconsistentwiththeprovisionsinthefunding agreement.

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AnnexAProjectLogicalframework(Logframe)– IfrequiredbytheDonor

AnnexBWorkplan

AnnexCBudget(byUNESCOBudgetLineorbyActivity)

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Annex A – Logframe

Intervention logic Objectively verifiable indicators of achievement/targets23

Sources and means of verification

Assumptions and risks

Development Objective(s)

Description of the overall broaderobjective(s),to which the project will contribute? These objectives are wide in scope and would not be achieved by one projectalone.(Example:education for all humans)

What are the key indicators related to the development objective(s)?Whichtargets show that the project and the achievement of the immediate objectives contributed to the development objective?

What are the sources of information for these targets?Whereandhowcan information on the achievement of these objectives be found?

N/A

Immediate Objectives or Project Goals (Expected results)24

Whatspecificobjective(s)will be achieved as aconsequenceofthe project? These objectives normally outlastaproject’simplementation period and have sustainable benefitsforthetargetbeneficiaries.Pleasebeexplicit and precise.

Describe indicators that will clearly show that theproject’simmediateobjective(s)willbeachieved?

What are the sources of information that exist or can be collected? Whatarethemethodsrequiredtogetthisinformation?

What are the external factors or conditions necessary to achieve the immediate objective(s)?Whatrisksshould be taken into consideration?

Outputs/deliverables25

Describethespecificoutputs/deliverablesand specify how these will contribute to the achievement of the results and envisaged specificobjective(s).Please enumerate theprojectactivities’expectedoutputs/deliverables.

What are the indicators to measure whether and to what extent the activities will achieve the expected results?

What are the sources of information for these indicators?Whereandhow can information on the achievement of these objectives be found?

What external conditions must be met to obtain theoutputs/deliverableson schedule and within budget?Identifythemain risks that could impact the success of the project and describe strategyforminimizingthem

Activities26 What are the key activities to be carried out in order to produce the expected results? Please group the activities by result and thenbysequence.

Means:Whatarethemeans(inputs)requiredtoimplement these activities,e.g.personnel,fellowships,equipment,sub-contractorservices,studies,supplies,operationalfacilities,etc.

CostsPlease provide the costs specifictoeachactivity(i.e.coststhatexistonlybecausethespecificactivitywilltakeplace).Adetailedbreakdownshould be provided in the Budget.

What pre- conditions arerequiredbeforetheactionstarts?Whatconditions outside the project’sdirectcontrolhave to be met for the implementation of the planned activities?

23 24 25 26

23 Whenformulatingtheindicatorspleasekeepinmindthe“SMART”rule:indicatorsshouldbeSpecific,Measurable,Attainable,Relevant and Time bound.

24 Outputs/deliverables and Expected results should be described in specific, measurable terms with associated baselines andquantitativeand/orqualitativetargets.

25 Outputs/deliverables and Expected results should be described in specific, measurable terms with associated baselines andquantitativeand/orqualitativetargets.

26 Ifyourprojectencompassesseveralactivities,pleasesimplylistthemhereandattachdetaileddescriptionsonanotherpage.

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Annex B – Workplan

Activity by project components

Months/or quarters

1 2 3 4 5 6 7 8 9 10

XXXX

Purchase of documentation

XXXX XXXX

Coordination XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Workshop preparation and organization

XXXX XXXX XXXX XXXX

Consultation workshops with local people

XXXX XXXX XXX

Development of action plan (etc.)

XXXX XXX

Submission of Progress Report for the donor

XXXX

Self -evaluation XXX

Submission of Final report including the self-evaluation

XXXX

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Annex C 27

C1 Budget by UNESCO budget line

Cost Elements Description Year 1 Year 2 Year 3 Total

(10) Staff        

(10’)Travelcosts – – – –

(11)Internationalexperts/Consultants

– – – –

(13)AdministrativeandTechnicalsupport staff

– – – –

(14)UnitedNationsVolunteers – – – –

(17)Nationalexperts – – – –

(10) Total Staff – – – –

(20) Subcontracts – – – –

(30) Training, seminars and meetings

– – – –

(40) Equipment – – – –

(50) Miscellaneous – – – –

Subtotal – direct costs – – – –

(80) Support costs – – – –

TOTAL – – – –

C2 Budget by activity

Activity Total (US $) Year 1 Year 2

A.

(1)

(2)

(3)

(4)

Sub-total

B.

(1)

Sub-total

PSC(13%)

TOTAL

27 CompleteeitherabudgetbyUNESCObudgetline(C1)orabudgetbyactivity(C2).Incasethebudgetperactivityistheoneapprovedbythedonor,reportingwillbeprovidedperWBSelements. Inanycases,adetailedbudget labelledwithUNESCObudget-lines,withcostrecoverydetails,mustbepreparedasrequiredbyBFM,forinternalmanagementpurposes.

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Annex II Template for progress report

Comments and visa by the Director of the Division or the Head/Director of the field office or category 1 institute:

• Project Title• TargetCountryorRegion• UNESCOBudgetcodeanddonorReferenceifappropriate• Funding source• Total Budget approved• Reporting Period • ExecutingAgency• Implementingpartners• Project starting date• Project completion date• ResponsibleSector • NameofPersoncompletingReport

Thisprogressreportpresentsthemainfindingsofaself-evaluationexerciseconductedbytheresponsibleUNESCOPO(s)andcoversthefollowing:

• Summary and Background• Description of project implementation for the period under review• Progress towards results• Sustainability • Workplan• Visibility• Challengesandlessonslearntandmodificationstotheprojectthatneedthedonor’sattention

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I. Summary and Background (1 page)

II. Description of project implementation for the period under review

• Activitiesundertaken• Outputs/deliverablesgenerated(quality,quantity,targetgroups,etc.)• Anyproblemsencounteredinprojectdeliveryandcorrectiveactionstaken

III. Progress towards results

• Shortnarrativeonthemainresultsattained includingfromtheperspectiveof thedirectbeneficiariesandspecifying how these achievements contributed to the C/5 higher-level (e.g.MLA) expected results. Thenarrativeshouldincludeanaccountofthe(partial)attainmentoftheproject’sexpectedresults(orlackthereof)aswellasanyother(in)direct(unexpected)resultsoftheproject.

• Shortnarrativeonthemainfactorsinfluencingtheattainmentofprojectresultsand(thelikelihood)ofthe(full)attainmentoftheoverallgoal.

• Summarytablewithkeyperformanceindicatorsof(expected)resultsandassociatedbaselinesandqualitativeand/orquantitativetargets(buildingonthenarrativesundertheprevioustwopoints).

Summary Table

Overall goal of the project Overall assessment :

Expected Results Performance Indicators (PI) and associated Target (T)/baselines (b)

Achievement(s) Outputs/ deliverables contributing to expected results

Programmed Attained

TitleofExpectedResultN°1

PI: T/b:

Output/deliverable/deliverable 1:

PI: T/b:

Output/ deliverable 2:

TitleofExpectedResultN°2

PI: T/b:

Output/ deliverable 1:

PI: T/b:

Output/ deliverable 2:

Pleasenotethattheexpectedresultsshouldmatchthosedescribedintheprojectdocumentor(incaseofchanges)any reported changes in follow-reports.

Projects are likely to generate other (in)direct effects apart from the (possible/partial) attainment of expectedresults.Theseshouldbedescribedinthenarrative(firstandsecondbulletpoints).Ifanyparticularindicatorshavebeendefinedwithrespecttotheseeffects(withcorrespondingdatacollection),thentheycanbepresentedintable form as well.

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IV. Sustainability

Whereappropriate,describethestepsundertakentoensurethefollowing:

• Sustainability of activities, outputs/deliverables and results, including with reference where applicable tohow capacity has beenbuilt under theproject.Alsodescribe anyplanned follow-upmeasures to ensuresustainability.Inthissection,itmayalsobeusefultomentionanyadditionalfundingorpartnershipsleveragedas a result of this project.

• Describehowtheownership(ofactivities,outputs/deliverables,results)bystakeholdershasbeenpromoted.• Describe how tools, processes, outputs/deliverables (etc.) have been adopted, adapted, replicated and/or

scaled up.

V. Workplan

Theprogressreportshouldcomparethepresentstatuswiththeoriginalplan,andprovidedetailedforecastsofprojectactivitiesfor thenext12months (or thenext6monthsforthesemi-annual report).Thereportshouldincludegeneralforecastsoftheentireproject’sworkplan,possiblyuntiltheendoftheproject.

VI. Visibility

• Whichactionswereundertakenduringtheprojectperiodinordertodisseminateinformationorcommunicateonprojectactivitiesandoutputs/deliverablesand results? If appropriate,mentionany systemsestablishedunder the project to promote south-south cooperation.

• Whichother(in)directeffects,ifany,apartfromthe(possible/partial)expectedresultshasledtoraisingthevisibility of the project

• WithinthecontextoftheabovedescribeanyactivitiesspecificallyaimedatgivingvisibilitytothecooperationbetweenUNESCOandtheDonor(s)underthisproject(e.g.mediacoverage,useofthelogoonthepublications,andotherdisplaysofthedonor’ssupport,participationofthedonorinprojectevents,jointpressconference,exposureonUNESCO’sorotherwebsites)

VII. Challenges, lessons learnt and modifications to the project that need the donor’s attention (and approval)

Whatarethekeychallenges/lessonslearntregardingthefollowing:

• Attainmentoftheoverallgoal• Attainmentofexpectedresults• Ownership of key stakeholders• Deliveryofprojectoutputs/deliverables• Project management and implementation

Whatmodificationstotheapprovedprojectdocumentand/orbudgetand/orworkplanhavetobepresentedtothedonorandapproved,asperprovisionsspecifiedinthefundingagreement?Incaseofmodificationstothebudget please indicate clearly in a comparative table the previously approved budget and the new proposed one.

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VIII Annexes

I. Logframematrix(whereitexists)

II. Listofpublications,evaluationreportsandotheroutputs/deliverables,whenapplicable

III. Listofnationalandinternationalstaff;fellowshipsawarded

IV. Listofmajorequipmentprovidedundertheprojectandstatusafterterminationcontractperiod

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Annex III Template final narrative report

Comments and visa by the Director of the Division or the Head/Director of the field office or category 1 institute:

• Project Title• TargetCountryorRegion• UNESCOBudgetcodeanddonorReferenceifappropriate• Funding source• Total Budget approved • Reporting Period • ExecutingAgency• Implementingpartners• Project starting date• Project completion date• ResponsibleSector • NameofPersoncompletingReport

Thisfinalnarrativereportpresentsthemainfindingsofaself-evaluationexerciseconductedbytheresponsibleUNESCOPO(s)andcoversthefollowing:

• Summary and Background• Description of project implementation• Progress towards results• SustainabilityandExit/transitionstrategy• Visibility• Challengesandlessonslearnt

I. Summary and Background (1 page)

II. Description of project implementation

• Activitiesundertaken• Outputs/deliverablesgenerated(quality,quantity,targetgroups,etc.)• Anyproblemsencounteredinprojectdeliveryandcorrectiveactionstaken

III. Progress towards results

• Shortnarrativeonthemainresultsattained includingfromtheperspectiveof thedirectbeneficiariesandspecifying how these achievements contributed to the C/5 higher-level (e.g.MLA) expected results. Thenarrativeshouldincludeanaccountofthe(partial)attainmentoftheproject’sexpectedresults(orlackthereof)aswellasanyother(in)direct(unexpected)resultsoftheproject.

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• Shortnarrativeonthemainfactorsinfluencingtheattainmentofprojectresultsand(thelikelihood)ofthe(full)attainmentoftheoverallgoal.

• Summarytablewithkeyperformanceindicatorsof(expected)resultsandassociatedbaselinesandqualitativeand/orquantitativetargets(buildingonthenarrativesundertheprevioustwopoints).

Summary Table

Overall goal of the project Overall assessment

Expected ResultsPerformance Indicators (PI) and associated Target (T)/baselines (b)

Achievement(s)Outputs/ deliverables contributing to expected results

Programmed Attained

Title of Expected Result N° 1 PI: T/b:

Output/deliverable1:

PI: T/b:

Output/deliverable2:

Title of Expected Result N° 2 PI: T/b:

Output/deliverable1:

PI: T/b:

Output/deliverable2:

Pleasenotethattheexpectedresultsshouldmatchthosedescribedintheprojectdocumentor(incaseofchanges)any reported changes in follow-reports.

Projects are likely to generate other (in)direct effects apart from the (possible/partial) attainment of expectedresults.Theseshouldbedescribedinthenarrative(firstandsecondbulletpoints).Ifanyparticularindicatorshavebeendefinedwithrespecttotheseeffects(withcorrespondingdatacollection),thentheycanbepresentedintable form as well.

IV. Sustainability and Exit/transition strategy

Thissectionlooksatifandhowthebenefitsoftheprojectwillcontinueafterthedonorfundinghasceased.

Whereappropriate,describethestepsundertakentoensurethefollowing:

• Sustainability of activities, outputs/deliverables and results, including with reference where applicable tohow capacity has beenbuilt under theproject.Alsodescribe anyplanned follow-upmeasures to ensuresustainability.Inthissection,itmayalsobeusefultomentionanyadditionalfundingorpartnershipsleveragedas a result of this project.

• Describehowtheownership(ofactivities,outputs/deliverables,results)bystakeholdershasbeenpromoted.• Describe how tools, processes, outputs/deliverables (etc.) have been adopted, adapted, replicated and/or

scaled up.

V. Visibility

• Whichactionswereundertakenduringtheprojectperiodinordertodisseminateinformationorcommunicateonproject activities andoutputs/deliverables and results. If appropriate,mention any systems establishedunder the project to promote south-south cooperation.

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• Whichother(in)directeffects,ifany,apartfromthe(possible/partial)expectedresultshasledtoraisingthevisibility of the project

• WithinthecontextoftheabovedescribeanyactivitiesspecificallyaimedatgivingvisibilitytothecooperationbetweenUNESCOandtheDonor(s)underthisproject(e.g.mediacoverage,useofthelogoonthepublications,andotherdisplaysofthedonor’ssupport,participationofthedonorinprojectevents,jointpressconference,exposureonUNESCO’sorotherwebsites)

VI. Challenges and lessons learnt

Whatarethekeychallenges/lessonslearntregardingthefollowing:

• Attainmentoftheoverallgoal• Attainmentofexpectedresults• Ownership of key stakeholders• Deliveryofprojectoutputs/deliverables• Project management and implementation

VII. Annexes

1. Self-evaluation approach (max. 1 page)

• Describe the system formonitoring the project and if relevant how specific information on indicators ofinterest were collected

• Mention the main sources of information for the self-evaluation• Refertoanychallengesfacedinpreparingtheself-evaluation(e.g.lackofdata)

2. Logframe matrix (where it exists)

3. List of publications, evaluation reports and other outputs/deliverables, when applicable

4. List of national and international staff; fellowships awarded

5. List of major equipment provided under the project and status after termination contract period

6. List of progress reports prepared during the contract period

Acronyms and Glossary

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Acronyms

ADG:AssistantDirectorGeneralAO:AdministrativeOfficerBFM: Bureau of Financial ManagementBKI:BureauofKnowledgeandInformationSystemsManagementBSP/CFS:BureauofStrategicPlanning–DivisionofCooperationwithExtrabudgetaryFundingSourcesCAP:ComplementaryAdditionalProgrammeC/4:UNESCO’sMedium-TermStrategyC/5:UNESCO’sProgrammeandBudgetFO:FieldOfficeHRM:BureauofHumanResourcesManagementIOS:InternalOversightServiceLA:LegalAdviserMDTF: Multi-Donor Trust FundPCPD:Post-ConflictandPost-DisasterRB: Regular BudgetRBM: Results-Based ManagementSISTER:SystemofInformationonStrategies,TasksandtheEvaluationofResultsSWAP:Sector-WideApproachToAA:TableonDelegatedAuthorityandAccountabilityUCPD:UNESCOCountryProgrammingDocumentsUNDAF:UnitedNationsDevelopmentAssistanceFrameworkUNDG:UnitedNationsDevelopmentGroupUNCTs:UnitedNationsCountryTeamsXB:Extrabudgetary

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Glossary

Achievements:informaboutmajorprogrammaticaccomplishments.Itisanassessmentatagivenpointintimeoftheresultorpartoftheresultachievedinlightoftheperformanceindicatorsandtheassociatedquantitativeand/orqualitative targets. It includes informationabout thekeyoutputs/deliverablesproducedandhowthesecontribute to the attainment of results.

Activity or project:ThethirdandlowestlevelinUNESCO’sprogrammestructure.Itisalsoreferredtoasworkplans.

Administrative Agent (AA):TheUNorganizationresponsiblefortheadministrationoffundsinaPass-throughFund Management mechanism.

Baseline data:Datadescribingthesituationbeforetheimplementationoftheactivityorproject,relatedtoeachresult,ateachlevel.Itisthestartingpointfromwhichprogresstowardsexpectedresultswillbemeasured.

Benchmark (Target): InUNESCO the term“benchmark” isusedasanachievable targetorameasure tobeachievedforaperformanceindicatoroverabiennium.Itisareferencepointorstandardtoassessperformance,ideallyaccompaniedbybaselinedatadescribingthesituationbeforetheimplementationoftheactivityorproject,useful for assessment or comparisons.

Beneficiaries and target groups:Individuals,groups,ororganizationsthatbenefit,directlyorindirectly,fromtheintervention.(e.g.Disadvantagedandexcludedgroups,MostvulnerablesegmentsofsocietyincludingIndigenouspeoples).Directbeneficiariesrepresentthoseforwhichtheelementisprimarilyorganized.Indirectbeneficiariesrefer to those who are affected by the element.

Biennial Sectoral Priority: To ensure a seamless transition between the Medium-Term Strategy and the biennial ProgrammeandBudget,theStrategicProgrammeObjectivesoftheC/4aretranslatedintoalimitednumberofBiennialSectoralPriorities,whichdeterminetheprogrammaticprofileforeachMajorProgramme.

C/3:‘ReportoftheDirectorGeneral’ontheimplementationofthe(previous)ProgrammeandBudget.

C/4:UNESCOMedium-TermStrategy(sixyears,8yearsfrom2014onwards)

C/5:UNESCOProgrammeandBudget(twoyears,4yearsfrom2014onwards).

Challenges and lessons learnt:constituteanassessmentofsuccessfactorsandcriticaldifficultiesencounteredduring the implementationwhich have affected the performance. The purpose is to propose,when feasible,measurestoovercomethedifficultiesencounteredandinformaboutlessonslearnedandshareconsiderationsonhowtheOrganizationcanbenefitfromtheseinordertoimprovefutureprogrammedelivery.

Category 1 institutes:instituteswhichcomeundertheUNESCOumbrellaandwhicharegovernedbytheirownboards.

Category 2 institutes: National bodies, financed by the host government, butworking in areas ofUNESCOcompetence.

Complementary Additional Programme (CAP): Designed as UNESCO’s main tool for the programmingof extrabudgetary activities and resources, as well as resource mobilization. The CAP of projected/targetedextrabudgetary activities is the main tool for the programming of extrabudgetary activities in reinforcement of theC/5, and a vehicle for dialoguewith donors. TheCAP is designed to strengthen the alignment betweenextrabudgetaryandregularprogrammeresourcesthroughthecreationofaunifiedresultschain.Anoverviewof

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theCAPisissuedintheformofabrochureatthebeginningofeachbiennium.Inaddition,thelivedatabaseofproposalsforfundingisavailablethroughUNESCO’sinternetandextranetsitesandSISTER.

Cost-Effectiveness/efficiency measures: can be described as an assessment of whether interventions and outputs couldhavebeendeliveredwithfewerresourceswithoutreducingthequalityandquantityoftheachievementsorwhetherthesame(orgreater)resultscouldhavebeenachievedatlowercostbyconsideringalternativedeliveryapproaches.Apolicyor aprogramme is effectivewhen it achieves its result at the lowest costpossible, thusensuringamaximumqualityimpactfortheresourcesavailable.Thepurposeistoinformabouttherationalandmeasures taken to ensure the most cost-effective programme implementation and provide considerations on how costeffectiveness can be improved in future programme implementation.

Cost Recovery Policy:UNESCO’sCostRecoverypolicyfunctionsundertwobasicprinciples:

• all costs needed for the proper implementation of an extrabudgetary project should be budgeted for and chargedtothatproject;

• costs should be recovered in cases where Regular Programme resources are used for an extrabudgetary project’simplementation.

Delivering as One UN:ReportoftheHigh-levelPanelonUnitedNationsSystem-wideCoherenceintheareasofdevelopment,humanitarianassistanceandtheenvironment(A/61/583).

Donations aregifts,bequests, subventionsor contributions (financial and/or in kind)whichUNESCO receivesdirectly fromgovernments, public and private institutions, associations and private persons. TheOrganizationmayalso receive funds for specific activitiesorprojects from suchbodies as theUnitedNationsDevelopmentProgramme(UNDP),otherUnitedNations(UN)agencies,MemberStates,andinternational,regionalornationalorganizations.

Donated funds-in-trust:  Funds-in-trustcontributions intendedforthe implementationofactivitiesbenefitingrecipients other than the donor are termed donated funds-in-trust.

Earmarked funds:arefundsspecificallydesignatedforaparticularproject.LightlyearmarkedfundsarefundsgivenbyadonorwhomaydecidetosupportaUNESCOthematicorprioritycountryprogrammewithoutattachingittoaparticularproject.Un-earmarkedfundsarewhendonorsprovidecontributionstoUNESCOwithoutspecifyingtheiruse.ItisthenuptoUNESCOtodecideontheutilizationofthefunds.Thisisalsotermedbudgetarysupport.

Evaluation:Thesystematicandobjectiveassessmentofon-goingorcompletedactivity/project,programmeorpolicy,inlightitsdesign,implementationapproachandtheachievementofresults.Itmeasuresandassessestheoutcomesandimpactsratherthanthedeliveryofoutputs/deliverables.Theaimistodeterminetherelevanceandfulfilmentofresults,efficiency,effectiveness,impactandsustainability.

EX/4 Report: Report by the Director-General on the execution of the Programme and Budget adopted by the GeneralConference.

Extended Strategic Sectoral Frameworks (ESSFs): The ESSF sets out the priorities and targets forresource mobilization for each Sector/Corporate Service, as foreseen in the Director-General’s Action Plan (174  EX/INF.4  Rev.) The ESSF constitutes a basis for the contribution of each programme Sector/Programme-relatedandCorporateServicetotheCAP.InlinewiththeUpdatedExtrabudgetaryResourceMobilizationStrategicPlan(185EX/INF.6),eachSector/ServiceshoulddrawupanESSFattheoutsetofaprogrammingexercisesoastomaximize the opportunity for establishing a clear strategic vision regarding the areas selected for resourcemobilization.

External evaluation:anevaluationofaprojectconductedbyindependententitiesand/orindividuals outsidethedonorandUNESCOselectedthroughacompetitiveprocess.

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ExtrabudgetarycontributionsareallfundspaidintoUNESCOotherthantheMember States’assessedcontributions;mostofthem(exceptadditionalappropriationstotheRegularProgramme),areclassifiedasProgrammeFiduciaryFunds(PFF),andarelargelysynonymouswithvoluntarycontributions.

TheFiduciaryPrinciplesAccordisaninstrumentdesignedtofacilitatethetransferoffundsfromaWorldBank-administeredtrustfundforcrisisandpost-crisissituationstoaUNorganizationorfromaUNledTrustFundforcrisisandpost-crisissituationstotheWorldBank.Thisinstrumentallowstherecipientofthefundstoapplyallitsownregulations,rulesandprocedures.

Funds-in-Trust (FIT): extrabudgetary contributions received from governments, organizations – international,nationalornon-governmental – foundations,private companiesorother sources for thepurposeof enablingUNESCO to carry out, on their behalf or at their request, specific activities that are consistentwith the aimsand policies of theOrganization.Most funds-in-trust agreements are limited to a single donor and tied to asingleproject,butmulti-donortrustfundsmayalsobeenvisaged.Funds-in-trustmaybedonated(intendedforutilizationbeyond thedonor’s territory) or self-benefitting. FITs are utilizedbyUNESCO for theprogramming,implementation and supervision of extrabudgetary projects or programmes selected by the donor in cooperation withtheOrganization.

TheFinancialManagementFrameworkAgreementwasnegotiatedinMarch2006betweentheWorldBankandtheUnitedNations.The World Bank makes grants to UN organizations from its own funds and from funds administered by itself from one or more donors. GrantFundsbenefiteitherdevelopingcountries,byprovidingsupportforparticularprogrammes,orUNOrganizationsbysupportingglobalandregionalinitiatives.Thisagreementsetsouthowtheparties,actingwithintheirrespectiveapplicablepolicies,rulesandprocedures,obtainreasonableauditassuranceontheuseoffundsprovidedbytheWorldBanktoanUNOrganization.

Functions (UNESCO’s functions in the C/4):TherangeoffunctionsthatUNESCOperforms.Theseare:laboratoryof ideas, standard setter, clearing house, capacity-builder in Member States and catalyst for internationalcooperation.

Implementation strategy: The implementation strategy explains how to move from the current situation to the onedescribedintheexpectedresult(“resultstatement”).Itshouldbeaction-orientedspecifyingthe:

• Majorissuestobeaddressedandrelevantbaseline;• Rationalewiththeunderlyingassumptionsandcausalsequenceoftheinterventionstobeundertaken,the

keyoutputs/deliverablesderivingfromthem,theexpectedresult(s) tobeattainedandmeasurestofollowup on them as well as the long-term result foreseen beyond the biennial timeframe providing the overall perspectiveoftheproject.Finally,specifythemannerinwhichthisprojectwillcontributetotheattainmentoftheC/5expectedresult(s);

• Majorbeneficiariesandkeypartnersandtheirexpectedroles;• Conclusionsofariskanalysisrelatedtotheimplementation.Anuncertaineventmayimpacttheperformance

of the programme delivery either positively or negatively. The measures foreseen to mitigate the negative impact of a threat should be formulated.

• Exitortransitionstrategyisastatementindicatingthewayyouintendtograduallyphaseoutexternalsupportandhavenationalpartnerstakeover;andthewayyouwillchangethemodalityofimplementation.Oncethefoundationsoftheactivityareestablished,thesustainabilityisdrivenbyotherplayers.UNESCOneedstoensurethesmoothhandoveroftheactivity,byensuringtherelevantskillstransferto(national)partners,orby building capacity to manage the activity for example.

Thereinforcementofanactivitybyanextrabudgetaryprojectcanalsobespecifiedwhenappropriate.Itisrecalledthatbeneficiariesandpartnersshouldbeinvolvedfromtheplanning/programmingstageandthroughoutthecycleto favour ownership and sustainability of the activity.

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Input(s):Thefinancial(regularprogrammeorextrabudgetaryresources),human(thestaffinvolved)andinstitutionalresources(materialresourcesavailableastheexistingpublications,toolkitsetc ...).

Intervention(s):Acttobeundertakenwhoseinputsaremobilizedtoproducespecificoutputs/deliverables.

Joint management:specificbudgetallocationmodalityormethodof implementationoftheEuropeanUnionapplicabletoUNESCO(directnegotiationwithoutgoingthroughacallforproposalprocess)

Joint programming: Jointprogramming is thecollectiveeffort throughwhichUNorganizationsandnationalpartnersworktogethertoprepare,implement,monitorandevaluateactivities-notablyachievingtheMillenniumDevelopmentGoals(MDGs)andotherinternationalcommitments.Throughjointprogramming,commonresultsandmodalitiesforsupportingprogrammeimplementationareidentified.

Joint programme/project:Ajointprogrammeisasetofactivitiescontainedinacommonworkplanandrelatedbudget, involving twoormoreUNorganizations and (sub) national partners. Thework plan andbudgetwillformpartofajointprogrammedocument,whichwillalsodetailtherolesandresponsibilitiesofeachpartnerincoordinating and managing activities.

Joint programme Steering Committee: This is a working coordination mechanism for a joint programme. The composition includes all the signatories of the joint programme document. The mechanism may also have other membersasobservers,suchasdonorsandotherstakeholders.

Monitoring: ThefunctionofMonitoringistoassesstheactualsituationcomparedtotheprogrammedinformationoriginallydefinedandtakecorrectiveactionwhenneeded.Monitoringispartofprogrammemanagementandshouldthereforenotbeconsideredasanadditionaltaskservingonlyreportingpurposes.Itallowskeepingtrackofprogress,toensurethattheimplementationisontherighttrackandtotakecorrectivemeasurewhenrequired.Itfurthermore facilitates reporting to key stakeholders and management on the progress achieved in a transparent and results-oriented manner in order to inform decision-making and to improve future policy and programme design.

Means of verification:Thedatasourcesandmethodologiesusedtomeasureandanalyzeperformance.

Other Proprietary Funds (OPF): include revenue-generating activities, programme support costs for SpecialAccountsandTrustFunds,theStaffCompensationFund,theTerminalPaymentsFund,andHeadquarters-relatedSpecialAccounts.TheUnitedKingdomandUnitedStatesSpecialFundsarealso includedunderthisgrouping.Thesefundsareusedtocarryoutprogrammesortogroupotherauthorizedexpenditure.Theresidualrightofownership of all of these funds is ultimately vested in Member States.

Output(s)/deliverable(s):Thefirsteffectoftheinterventionswhichcontributestotheattainmentofresults.Itisatangibleorintangibleproduct(e.g.newknowledgeandskills)derivingfromtheinterventions.

Overarching Objectives of the C/4 (OO): TheMedium-Term Strategy is structured around fiveOverarchingObjectives(OO)denotingareaswhereUNESCOhasauniqueprofileandcompetency.

Parallel Fund Management:afundmanagementmechanismwhereeachorganizationparticipatinginthejointprogramme manages its own funds regardless of their source.

Pass-through Fund Management: This is a fund management mechanism where a donor or donors and UN participating organizations agree to channel funds for a joint programme through one participating UNorganization. TheUNorganization channelling resources, in this case, is called theAdministrativeAgent (AA)andisjointlyselectedbyallparticipatingorganizations.Programmaticandfinancialaccountabilityrestswiththeparticipatingorganizationsandnationalpartners.

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Performance indicator(s):Aparameterusedtoassessandmeasuretheprogressrelatedtoanexpectedresultoranaspectofitandtoidentifytowhatextentbeneficiaries/targetgroupshavebeenreached.Thecombinationofall performance indicators captures the essence of the expected result.

Plan of Operations:anagreementforformalisingtheapprovalofthebeneficiarygovernmentandprovidinglegalprotectiontoUNESCO.

Pipeline Projects: Projects in the process of being formulated.

Pooled Fund Management:AfundmanagementmechanismwhereparticipatingUNorganizationsworkforcommonresultswithacommonnationalor(sub-)nationalpartner(e.g.Department,provincialoffice,NGO)and/or in a commongeographical area.Under this option,UNorganizations canpool funds together to oneUNorganization,calledtheManagingAgent,chosenjointlybytheparticipatingUNorganizationsinconsultationwiththe(sub-)nationalpartner.

Procurement:istheoverallprocessofacquisition,bypurchaseorlease,ofgoods,worksand/orservicesrequiredbyUNESCO.

Programme Fiduciary Funds (PFF):includesinstitutes,SpecialAccountsandTrustFundssetupinaccordancewith Financial Regulation 6.5 and 6.6. They are used to carry out extrabudgetary programme activities in accordancewiththerespectiveagreementssignedbetweenUNESCOandrelatedpartiesorotherlegalauthorities.

Result:(or“resultstatement”)describesaconcrete,visibleandmeasurablechangeinstate,inducedbytheactivityorprojecttobeundertaken.Itexpressesthechangeinducedbytheimplementationoftheactivityorproject.Inotherwords,itshouldconveyhowaspecificsituationisexpectedtobedifferentfromthecurrentsituation.Forthisreason,itshouldarticulatewhatistobedifferentratherthanwhatistobedone.Inmanycases,theexpectedresultrelatestotheuseofoutputs/deliverablesbyintendedbeneficiaries.

Results-Based Management (RBM):Itisabroadmanagementstrategyaimedatchangingthewayinstitutionsoperate,byimprovingperformance,programmaticfocusanddelivery.Itreflectsthewayanorganizationappliesprocesses and resources to undertake interventions to achieve commonly agreed results. RBM is a participatory andteam-basedapproachtoprogrammeplanningandfocusesonachievingdefinedandmeasurableresultsandimpacts.Itisdesignedtoimproveprogrammedeliveryandstrengthenmanagementeffectiveness,efficiencyandaccountability.RBMhelpsmovingthefocusofprogramming,managinganddecision-makingfrom inputsandprocessestotheobjectivestobemet.Inprogrammingphaseitensuresthatthereisanecessaryandsufficientsum of interventions to achieve an expected result. During the implementation phase the RBM approach helps to ensureandmonitorthatallavailablefinancial,humanandinstitutionalresourcescontinuetosupporttheintendedresults.Results chain: The aggregation of the results at one level should make it possible to achieve the expected result of thehigherlevel.Thisprocessconstitutestheresultschain.AtUNESCO,theresultschainflowsfromtheexpectedoutcomesoftheMedium-TermStrategy,downtotheexpectedresultsdefined inthebiennialProgrammeandBudgettotheexpectedresultsoftheactivity/projectlevel,ensuringaseamlesspassagebetweentheprogrammaticlevels.This linkestablishedbetweenthe resultsatdifferentprogrammatic levelsensures that theOrganizationfocusesitsresourcesonattainingtheresultsdefinedatthehighestlevels.

Secondments:staffsecondmentsfromMemberStatesandtoalesserdegreefromotherUnitedNationsagencies,multilateral developments banks and even some private sector partners are another modality through which UNESCOcansupplementin-houseexpertiseandcapacitiesinprogrammeimplementation.

Self-benefiting funds-in-trust: Funds-in-trust contributions intended for the implementation of extrabudgetary projectsandprogrammesforthebenefitofthefundingsourcearetermedself-benefitingfunds-in-trust.

Self-evaluation: an evaluation of a project conducted by the responsible PO.

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Special Account for Voluntary Contributions: an account established in accordance with Financial Regulations 7.6toreceivevoluntarycontributionsforwhichnopurposeisspecified.

Strategic Programme Objectives of the C/4 (SPO):FourteenStrategicProgrammeObjectives(SPOs)translatetheOverarchingObjectivesintoprogramme-relevantandthematicterms.EachSPObuildsinalinkagebetweennormative and operational tasks.

Sustainability:AnactivityorprojectcanbedescribedsustainablewhenthebenefitsderivedfromitaremaintainedovertimeandbeyondtheOrganization’sassistance.Involvingbeneficiariesandpartnersintheprogrammedesignand implementation favours ownership and is one step which participates in ensuring sustainability. The purpose is toreportonthecriteriaorconditionsputinplacetoassessprospectsofthesubstantive,managerialandfinancialsustainability of an activity or project. In addition, indications aboutUNESCO’s exit, transition or phasing outstrategies can prove useful.

Target:Aquantitativeand/orqualitativemeasuretobeachievedforaperformanceindicatoroverabiennium.Itisareferencepointorstandardtoassessperformance,ideallyaccompaniedbybaselinedatadescribingthesituationbeforetheimplementationoftheactivityorproject,usefulforassessmentorcomparisons.

UNESCO Country Programming Document (UCPD):ItisdesignedtocaptureinasingledocumentUNESCO’sactivities/projects in a particular country, in a succinct and results-oriented comprehensive manner, whetherfunded from regular or extrabudgetary resources. The document is composed of a concise overview of pertinent developments relevant toUNESCO’s areas of competence for a given country (situation analysis) aswell as asuccinctresults-baseddescriptionofallUNESCO’songoing,recentandpastsupportandactivities/projectsincludingcooperationwithotherUnitedNationspartnersandexternaldonors.

Voluntary contributions:Contributionsacceptedeitherincashorinkindotherthanassessedcontributions.

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Useful links and references

Intranet, list address

Extrabudgetary help desk, list address

http://www.unesco.org/en/donors

B4UHelpCard

GuidelinesontheCostRecoveryPolicyandBudgetaryAspectsofExtrabudgetaryProjects.

UNESCOExtrabudgetaryResourceMobilizationStrategicPlan

OnlineAdministrativeManual

Model Project Document

TemplateforBudgetWorkplan(Excel)

Updatedagreementtemplates(allappendicestoManualItem5.4+templateforspecialaccount)

RBM Material

GuidelinesforprogrammingofCAPOutlinesandExtrabudgetary(XB)Projects(2010-2011),availableviathefollowing link: http://unesdoc.unesco.org/images/0019/001936/193691E.pdf

MonitoringandReportingGuidelines,availableviathefollowinglink: http://unesdoc.unesco.org/images/0021/002159/215988E.pdf

RBMGuidingPrinciplesinEnglish(42pages),availableviathefollowinglink: http://unesdoc.unesco.org/images/0017/001775/177568E.pdf

SISTER Material

SISTERHelpCards2.5.aand2.5.bforcreationtheXBprocess,availableviathefollowinglink: http://sister36c5.hq.int.unesco.org/Guidelines.aspx?id=712andhttp://sister36c5.hq.int.unesco.org/Guidelines.aspx?id=118

SISTERHelpCard3.1forenteringmonitoringinformationattheworkplanlevel,availableviathefollowinglink:http://sister36c5.hq.int.unesco.org/Guidelines.aspx?id=110

SISTERHelpCard3.3forBudgetOperations,availableviathefollowinglink: http://sister36c5.hq.int.unesco.org/Guidelines.aspx?id=128

SISTERHelpCard4.1forSearch/Reports,availableviathefollowinglink: http://sister36c5.hq.int.unesco.org/Guidelines.aspx?id=130

Formats for narrative reports

Private Sector Guidelines

SISTERHelpmaterial

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Reference Forms for FIT – AM Appendix 5.4

AMAppendix5.4A«ModelLetterforaFunds-in-TrustProjectAgreementwithaDonor»

AMAppendix5.4B“ModelofFunds-in-TrustProjectAgreementwithaGovernmentalFundingSource”

AMAppendix5.4C“ModelLetterforaSelf-BenefitingFunds-in-TrustwithMainElementsofthePlanofOperations”

AMAppendix5.4D“ModelAgreementforaSelf-BenefitingFunds-in-TrustwithMainElementsofthePlanofOperations”

AMAppendix5.4E“ModelPlanofOperationforaFunds-in-TrustProject(AgreementwiththeBeneficiaryCountry)”

AM Appendix 5.4F “Model Framework General Agreement for Funds-in-Trust Arrangements with a DonorCountry”

AMAppendix5.4G“ChecklistforProjectDocumentforFinancingunderFunds-in-Trust“

AMAppendix5.4H“ChecklistforFundingAgreementforaFunds-in-TrustProject”

Guidelines for partnering with UN system and reference forms – AM Appendix 5.5

AMAppendix5.5A“StandardMemorandumofUnderstanding(MoU)ForMulti-Donor

TrustFundsandJointProgrammesUsingPass-ThroughFundManagement”

AMAppendix5.5B“StandardAdministrativeArrangementforMulti-DonorTrustFundsandJointProgrammesUsingPass-ThroughFundManagement”

AMAppendix5.5C“StandardMemorandumofUnderstandingbetweentheParticipating

UNOrganizationsandtheManagingAgentforPooledFundManagement”

AMAppendix5.5D«ProtocolontheAdministrativeAgentforMultiDonorTrustFundsandJointProgrammes,andOneUNFunds”

AMAppendix5.5E“BasicAgreementDocumentforFundsDirectedtoUNAgencies”

Guidelines for working with Multilateral Development Banks and other partners – AM Appendix 5.6

AMAppendix5.6A“AccordConcernantl’exécutiond’unprojetfinancéparlaBanque…Développement”

AMAppendix5.6B“FiduciaryPrinciplesAccord”

AMAppendix5.6C“ModelAgreementbetweenUNESCOandtheWorldBankforGrantFinancedActivities”

CAPOutlinesandXBProjectsProgrammingGuidelines

HelpCard2.5:TheExtrabudgetaryProcess

UpdatedExtrabudgetaryResourceMobilizationStrategicPlan(185EX/INF.6)

Guidelines for partnering with the EU – AM Appendix 5.7

BSP-2013/WS/4