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Overview

The United Nations Development Assistance Framework (UNDAF) 2012-2015 was launched in Papua New Guinea in 2012. It was signed by the Minister of National Planning, on behalf of the Government of Papua New Guinea and by the Resident Coordinator, on behalf of the United Nations System.

In formulating this Framework, the UN and the Government of Papua New Guinea have adopted a holistic approach to providing multi-faceted assistance as defined by the specific mandates of the UN agencies, funds and programmes represented in PNG.   As a Country Team, the UN has defined where it has comparative advantages in providing technical assistance and direct support and how these advantages might best contribute to the national development vision and goals as outlined in the GoPNG’s Medium-Term Development Plan (MTDP) 2011-2015 and the Development Strategic Plan 2010-2030.

The UNDAF 2012-2015 is designed therefore not only to leverage the UN’s expertise, but also to create synergies for cooperation between the participating UN agencies.

The United Nations has a special contribution to make to the achievement of Papua New Guinea’s growth and development. This contribution is not primarily financial. It is as standard-setter, policy adviser, capacity developer, implementation supporter, coordination specialist, and catalyst for change. In response to the many challenges and opportunities facing the UN in PNG, the United Nations Country Team (UNCT) in PNG has pro-actively taken up the challenges of the UN Reform, resulting in new innovative approaches to programme and operational design and delivery.

In an effort to consolidate and focus further innovations at the country level, the UNCT has agreed to consolidate the reform with the ultimate objective to establish ‘One UN’ based on 5 components as reflected in the Joint UN Country Strategy:

       UN Programme | UNDAF 2012-2015;

       UN Operations | Harmonizing and aligning UN business practices;

       UN Communications and Advocacy | Providing a joint UN communication framework;

       UN Country Fund | Supported by an integrated UN resource mobilization strategy; and

       UN Haus | creating single country presence of UN agencies.

The development and implementation of the 5 elements is supported by a results based management approach and change management activities in support of the ongoing transition of the agency based service delivery model towards the “integrated UN delivery model”.

The PNG UN Country Fund is governed by its Terms of Reference, which was revised in September 2012 and allows the UN System in PNG to move towards a single financing mechanism for development, with the majority of UN development funds being managed by the PNG UN Country Fund. The PNG UN Country Fund provides therefore a means for further consolidation of UN funding mechanisms in PNG and coherent mobilization, allocation and disbursement of donor resources in support of the five Delivering as One elements of the Joint UN Country Strategy. All additional resources mobilized through the joint UN resource mobilization efforts and an increasing amount of agency non-core/other resources will be managed through the PNG UN Country Fund. Agencies core/regular resources remain outside the PNG UN Country Fund.

The PNG UN Country Fund is administered by the Multi-Partner Trust Fund Office (MPTF Office) of the United Nations Development Programme (UNDP) in accordance with its financial regulations and rules.

 

Assistance Strategy

The PNG UN Country Fund is meant to streamline, simplify and increase harmonization and predictability of resources. A single report caters to donors reporting needs, rather than donors receiving multiple reports from different agencies. It is important that donors to the PNG UN Country Fund aspire to contribute early and as multi-year as possible to truly allow predictability and strategic decisions driven by the Joint UN Country Strategy development priorities and national strategies.

In order to minimize transaction costs for partners, the UN will strive to mobilize the required additional resources through joint resource mobilization efforts and a single report on development results from the UN. To enhance transparency of resource allocation and utilization, the resources mobilized will be clearly tied to the results for each reform element that the resources are meant to support. The allocations are based on Results Based Management principles, favoring programmes that have high delivery and manage to show results.

 The additional resources mobilized will be allocated on the basis of results based allocation criteria. These allocations will follow the priorities as determined by the joint Government of PNG/UN Programme Steering Committee, based on the Medium and Long Term Development Strategies priorities, further reinforcing and demonstrating the UNs adherence to the Paris Declaration Principles and national ownership of the development agenda. The PNG UN Country Fund will further enhance the UNs ability to identify which resources are channeled to which result areas, reinforcing the UN capacity to identify its contribution and align with the national development priorities.

The PNG UN Country Fund offers two different funding windows. Each window has detailed results matrices underpinning the anticipated results and resource requirements of the results areas of that window. Window 1 reflects required resources, mobilized resources and the resource gap associated with the UNDAF 2012-2015, while Window 2 focuses on required resources, mobilized resources and the resource gap associated with the strategic support functions reinforcing the delivery of the UNDAF 2012-2015. This second window includes change management activities associated with the transition from the agency based model to the UN System based model.
The six key principles underlying the PNG UN Country Fund include:

  • PNG UN Country Fund in support of One Strategy: the PNG UN Country Fund supports the results of the Joint UN Country Strategy.
  • The PNG UN Country Fund is a voluntary structure. Agencies can join on an annual basis.
  • Only participating UN organizations can receive funds from the PNG UN Country Fund.
  • The PNG UN Country Fund focuses on the management of an increasing amount of agency non-core resources and of additional resources mobilized in support of the unfunded or underfunded outcomes articulated in the results frameworks of the Joint UN Country Strategy.
  • Existing agency core resources are not part of the PNG UN Country Fund. However agencies are asked to identify the outcomes and outputs to which they plan to allocate core funds so as to allow the UN System to have an accurate picture of the resource gap and the un-(der) funded outcomes in the results framework.
  • Agencies may continue raising non-core resources on an agency basis, for activities tied to the joint annual work plans.
Additional information on the two windows is available in the PNG UN Budgetary Framework.

Governance

The governance arrangements of the PNG UN Country Fund include the Government of PNG and the Participating UN Organizations/Agencies.
The following division of labour guides the governance process for the PNG UN Country Fund:
  • The Government of PNG/UN Programme Steering Committee sets the high level priority thematic areas at the yearly Programme Steering Committee Meeting.
  • Resources are allocated by the Programme Steering Committee and the UN Country Team, under the leadership of the Resident Coordinator.
  • The Administrative Agent will transfer resource after receiving explicit instructions from the Resident Coordinator.
The management responsibilities are divided between the Resident Coordinator, the Government of PNG/UN Programme Steering Committee, and the UN Country Team.

The Resident Coordinator will be responsible for:
  • Strategic leadership of the PNG Country Fund on the basis of the UNDAF 2012-2015, and the results framework of the other four Delivery as One elements (Country Fund, UN Operations, UN Haus and UN Communications and Advocacy);
  • Engaging in Joint Resource Mobilization for the PNG UN Country Fund in collaboration with Participating UN Organizations;
  • (S)he will be responsible for ensuring the documentation of the allocation process including the rationale for these decisions. Implementation of activities funded by the resources of the Country Fund will be the responsibility of the Head of Participating UN Organizations. The RC will hold Head of Participating UN Organizations accountable for their agency/organization’s components of the results of initiatives funded through the Country Fund;
  • Ensuring consolidated PNG UN Country Fund level reporting, including to donors, based on reports from Participating Organizations and support from the Administrative Agent (ref below) and the Resident Coordinator’s Office.
The Government of PNG/UN Programme Steering Committee is responsible for:
  • Monitoring of overall delivery and results of the UNDAF 2012-2015;
  • Outlining of programmatic priorities and allocating resources at the inter-agency outcome level for the next annual programme cycle, in accordance with agreed allocation procedures.
The UN Country Team is responsible for:
  • Monitoring of overall delivery of Joint UN Country Strategy results;
  • As part of the Programme Steering Committee, the UNCT outlines programmatic priorities and allocating resources at the inter-agency outcome level for the next annual programme cycle, in accordance with agreed allocation procedures;
  • Mediation of disputes in case of disagreements on allocation, utilization or management of funds from the Country Fund.
The Administrative Agent
The UNDP MPTF Office has been appointed the Administrative Agent of the PNG UN Country Fund. Its responsibilities include the receipt, administration and management of contributions from Donors; disbursement of such funds to the Participating UN Organizations in accordance with the approved programmatic documents; and provision of consolidated narrative and financial reports, in accordance with the MOU, on the PNG UN Country Fund to the Resident Coordinator for onward submission to the UNCT, Government of PNG/UN Programme Steering Committee and to each donor, based on reports of the Participating UN Organizations.

Decision-Making Process

The allocation decision-making authority depends on the allocation type: outcome level allocation or output/annual deliverable level allocations:

  • Government of PNG/UN Programme Steering Committee identifies priority areas in the UNDAF for the coming year
  • Government of PNG/UN Programme Steering Committee allocates resources at the inter agency outcome level
  • UN Thematic Task Teams allocate resources at the output level for the inter agency outcomes covered by the Task Team
  • UN Thematic Task teams allocate resources to annual deliverables and the agency supporting an annual deliverable, based on the agreed annual work plan

The following base rules apply to the allocation process under the PNG UN Country Fund:

  1. Acceptance or rejection of “Request for Funding” are based on majority vote of relevant governance body deciding on allocations
  2. The UN Coordination Office will maintain an up-to-date overview of the available resources, required resources and the resulting resource gap
  3. Only results that are part of the UNDAF 2012-2015, and that are currently unfunded or underfunded are eligible to receive funds from the Country Fund
  4. Only agencies that are “Participating Agencies” in the Country Fund can receive funds from the Country Fund
  5. Resource requests cannot be made on behalf of an agency, only on behalf of the Task team responsible for an un(der) funded outcome
  6. Each Request for Funding has to be accepted or rejected in its entirety
  7. The Country Fund will not fund more than 49% of the total resource gap associated with a particular result. The remaining 51% needs to be funded by other sources or the agencies responsible for the particular result
  8. Request for funding explicitly follow the results chains of the UNDAF 2012-2015, e.g. each request is tied to an UNCP intermediate outcome, an output and the supporting work plan and resource gap for the coming year
  9. The UNCT reserves the right to re-allocate resources based on Task Teams performance after the second quarter review, based on the performance criteria outlined in section 3.8.
  10. Any uncommitted funds remaining at the end of the annual cycle will be re-channeled to the Country Fund and will be re-allocated in the next years’ allocation process
  11. Criteria are subject to review on an annual basis and may be adjusted by the UNCT/RC based on relevance and effectiveness of the criteria themselves

Additional information on the allocation process, including frequentcy and specific processes related to Window 1 and Window 2, is available in the PNG UN Budgetary Framework document.

Recent Documents

This tab shows only recent documents relevant at the Fund level. To see more documents at both the fund and project level go to the Document Center.

Key Figures
Funding Status
Participating Organizations are required to submit final year-end expenditures by April 30 in the following year; Interim expenditure figures are submitted on a voluntary basis and therefore current year figures are not final until the year-end expenditures have been submitted.
Total as of
Values in US$
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Funds with Administrative Agent
Deposits 90,890,202  
Interest and Investment Income (from Fund) + 46,769  
Interest (from Participating Organizations) + 28,796  
Total source of funds   90,965,767
Transferred to Participating Organizations 85,676,952  
Refunds from Participating Organizations - 59,779  
Administrative Agent Fee + 908,902  
Direct Cost + 4,348,231  
Bank Charges + 401  
Total use of funds   - 90,874,707
Balance with Administrative Agent   91,060
As a percentage of deposits   0.1%
Funds with Participating Organizations
Transferred to Participating Organizations 85,676,952  
Total resources   85,676,952
Participating Organizations' Expenditure 39,682,984  
Refunds from Participating Organizations + 59,779  
Total expenses   - 39,742,763
Balance with Participating Organizations   45,934,189
As a percentage of transfers   53.6%
Total Balance of Funds   46,025,249
As a percentage of deposits   50.6%
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Contacts

For Policy and Programme Issues

UN Resident Coordinator Office, UN House, Deloitte Tower, Level 14, Douglas Street, Port Moresby, N.C.D., Papua New Guinea; Tel: +675 321 2877+675 321 2877; Fax:+675 321 1224

For Administrative Agent Issues


Multi-Partner Trust Fund Office (MPTF Office), Bureau for Management Services, United Nations Development Programme; Fax: +1 212 906 6990;  

 

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