UNDG Draft Guidance Note

1. UNDG Draft Guidance Note UNCT engagement in a Changing Aid Environment DAY 2 Glen Cove, 20th February 2009

2. Guidance Note Session • Key issues from Day 2 Working Groups • Issues concerning the next draft of Guidance Note • Next Steps

3. WG - Alignment: Strengthening and using national procurement systems • Issues / challenges • TCPR starting point and clear on encouragement to use, strengthen country systems • Quality of national systems (slow, lack of transparency, different UN interest – for NOT using the systems) • Capacity assessment in place but no clear monitoring framework • Lack of risk analysis and risk management/mitigation • Tools available but no tools for micro-assessment for procurement services Example China: China complained that UNFPA was not using country procurement, UNFPA explained that quality control for products was missing and then TA was provided to set up a testing lab and UNFPA was able to use the country procurement system

4. WG - Alignment: Strengthening and using national procurement systems Guidance: Principles: TCPR, capacity development, coordination/harmonization with other partners Capacity assessment and the formulation of gaps based on the existing tools: • 1st OECD DAC tool preferred tool but thresholds for criteria have to be developed (follow up IAWG procurement) Capacity development to address the gaps No tools for micro assessment re. procurement: follow up IAWG Procurement to develop tools , very closely linked to the existing HACT assessment Monitoring framework for to be developed, in association with the oversight bodies( to include the risk mitigation aspects.

5. WG - Alignment: Enhancing national reporting and M&E systems • Challenges around attribution issues. UN usually asked to report on own inputs. • How to report on upstream work on policy and advocacy. No good indicator set as yet. • UN reporting often focused on expenditure. At odds with key normative role. • New aid environment requires different skills/capacities in M&E. • Need to ensure UNDAF indicators are aligned to national indicators • National indiators often weak or absent • Strengthening national capacity in M&E • Can we move to ONE UN report based on the UNDAF? • UN often not seen as stron on M&E by governments. • Need to harmonise UN terminology. Currently very different.

6. WG - Alignment: Enhancing national reporting and M&E systems Guidance • Joint WG in UN system on M&E • Different guidelines on RBM in diff agencies. Ned to have one guideline. • One UN report important, saves work and is appropriate and builds accountability • Strengthen M&E capacity of UN in country (UNICEF strongest at present) including in RCO • Work with donors to develop common reporting system • Develop and support use of DEV INFO in country • Support evidence based results and planning of government • Link our UN M&E systems to national syatems. • Capacity development - Improve quality of data/ data management systems in countries. • How do we better monitor UN against PD indicators. • Guidance on how the UN system can report against the PD indicators.

7. WG - Harmonisation: Enhancing the division of labour and complementarity among UN agncies Issues • Definition - several different definitions exist. • A means not an end. • Differences between agencies on DoL issues. • Lot of incompatibilities in operating systems. • Danger in creating new layers of bureacracy. • Boards give conflicting instructions on how to work together. • Non-resident agencies. DoL can include or exclude them depending on relations with UNCT, etc. • Need to recognise overlap and complementarity that exists between agencies. • DoL a negative term. Means you have to give up things sometimes.

8. WG - Harmonisation: Enhancing the division of labour and complementarity among UN agncies Guidance • UNAIDS - a successful DoL. Global guideline but flexible interpretation at country level. • Refer to existing guidance. Mention gaps • UNDG level harmonisation on DoL then country level. • Avoid details and allow flexibility in country • Encouraging clustering. Use complementarity and coherence language. • Management for synergy and complementarity of mandates not DoL • Debate whether there should be a separate DoL section in Note or not.

9. WG - Crisis and post-crisis situations: Increasing aid effectiveness in crisis and transition settings Issues • Not business as usual. This is aid effectiveness in a political and security context • Need for delivery and building of capacity - Concomitant emergency and building of structures • Human Rights and the Rule of Law must be at heart of work • UN must come together to provide leadership without taking over • Well placed to lead support on aid effectiveness. but need to get internal issues in order. • Must not take over and in so doig inadvertently weaken/prevent development of national structures. • Working in tight alliance with IFIs is key • Need to link different aspects of humanitarian, post-crisis and transition to development work.

10. WG - Crisis and post-crisis situations: Increasing aid effectiveness in crisis and transition settings Guidance • Build on cluster system developed in humanitarian phase and take forward into the development phase. • Inventory of practice at country level. e.g Burundi, Afghanistan inventory of good practice • Good and Bad practices need to be reviewed and shared • Survey of UNCTs in transition countries to feed into inventory and to work out what is needed by UNCTs in this area. • Mapping of existing guidance and tools. Many different groups exist. • Provide if and as needed CONCISE info and tools. Time constraints - Difficult to read too much. Make linkages and find right place to access guidance and tools.

11. WG - Alignment: Using different aid instruments and funding modalities + Strengthening and using public financial management systems Issues • How to secure UN voice at the table and remain neutral broker at the same time • UN financial rules are not yet in line with the programme country request (as per TCPR!) • Role of the UN: Capacity Development, TA to Policy formulation. Trends toward global funds, challenge to provide TA to counterparts to access these funds • Government request; Reduction of transaction costs; Alignment of the UN financial contribution • Supporting National development plans, budget • Risk analysis, risk mitigation • Center of gravity and policy dialogue shifting to pooled funding • Ensure flexibility of funding mechanism to reflect different agency mandates and country circumstances while at the same time project approach; Identify most effective and efficient modality for circumstances

12. WG - Alignment: Using different aid instruments and funding modalities + Strengthening and using public financial management systems Guidance • Clear definitions of menu of options and scenarios - what the UN can do and what not? • Pooled funding, SBS but no GBS • Expand existing toolbox, specify type of service and agency • Identify risks and opportunities • Link to TCPR and existing guidance • Include trends on global funds and UN role in supporting programme country partners

13. WG - Managing for Results: Staffing, accountability and incentives for good performance in the UN development system Issues • Two key areas: • Quality of staff. Skills for working more upstream on policy. • Procedures that are time consuming • Range of accountability / performance appraisal issues • Harmonisation of different HR policies. • Fear issues - will agencies hire new staff or train existing staff • Issues around support to the RC • RC guidance note says different agencies will give support to the RCO • Staff contractual security/ new staff procedures less flexible

14. WG - Managing for Results: Staffing, accountability and incentives for good performance in the UN development system Guidance Agency level: Accountability - Harmonisation of peformance management systems. Include ONE UN type indicators in performance management systems. Building flexibility in job descriptions. Inter-agency experience should be viewed as a valued experience. Promoting staff swaps. Common grading for jobs. Interagency mobility should respect promotion (HQ). Contractual arrangement - More clarity on new rules and forms of contracts. Common procedures across agencies need to be applied. Country Level: Quality - map who is currently doing what? UN is being asked for more upstream support. Are right people in right place? ID skill gaps across UNCT. ID training on procedureal and technical issues. UNCT could lead on this. RDTs have a role. RC support New RC guidance. UNCT to try to work out solutions. RC Office - burden on UNDP

15. WG - Mutual Accountability: Mutual accountability and aid management systems Issues • Two sides to MA. Results and Management of Resources. • How do we report when there is an interagency platform? UNAIDS improving example of reporting back on areas of responsibility • Who can be held accountable for delivering the outcomes in the UNDAF? Reporting element has been missing. Now there is an obligation and need for guidance on this. • UNDAF developed between agencies and governments. Agencies report to their own Boards. • Annual report of UNDAF should include financial reporting. Pilot countries including this - Spreadsheet developed. • RCs do not get all inputs from agencies that participated in UNDAF. Some partners do not appear in the UNDAF even though seen as part of the UN. Non-Residents/ new programmes.

16. WG - Mutual Accountability: Mutual accountability and aid management systems Guidance • Ensure ownership of UNCT around the UNDAF. • Make the UNDAF the key MA framework bet UN and Govt and with good reporting. • Need to ensure UNDAF outcomes are developed/defined in cooperation with government. Push UNDAF to be more aligned with NDSs • Use UNDAF reviews as a mechanisms for adjusting UNDAF outcomes, to keep it relevant to the changing context. • Pilot countries- accountability rests with the agency that takes responsibility for that part of that workplan. Mechanisms exist to monitor implementing partners. • Promote engagement in mechanisms and instruments such as: Country Assistance Database; Joint Annual Performance Reviews; PERs

17. Issues for the Guidance note To provide guidance to UNCTs / UNDG on ways to effectively position the UN at country level : • Based on UNCT experiences, lessons learned • Closer link to TCPR 07. • Link to existing policies and procedures of the UN organizations, such as the January 2008 Position Paper and other documents including those relating to the recent Accra HLF meeting • Recognize the diversity of UN organizations. Funds and Programmes and Specialised Agencies • Recognize the speed of change and complexity of aid architecture can be very different between countries.

18. Issues for the Guidance note Develop: Principles for engagement Identified blocks and challenges Identified areas where actions can be taken Use the Chapeau - to highlight guiding principles and rules of engagement Definitions - Highlight agreed definitions where possible. Provide Lexicon/ Glossary - link to existing document or annex

19. Issues for the Guidance note Two Main Sections: • Section I - Working with Partners at Country Level (best way to support partners to implement development programs in context of new aid modalities) • Section II - Internal reorganisation to respond to the TCPR and HLFs (focused on internal actions UN agencies can do to work together more effectively)

20. Issues for the Guidance note General: Keep simple and keep as short as possible Link to other specific guidance notes/ checklists. Incorporate key recommendations of the different Working groups Clear structure based on issues/challenges; Practical actions; Issues under development Consider Checklists on key points Develop summary Matrix of practical actions Glossary Specifics: Section on Transition, post crisis situations S-S not a chapter but in chapeau and mainstreamed HR not just in chapeau but mainstreamed Best place for PFM section