The GEF Trustee Intro to the GEF Training May 28-29, 2015 Trust Funds and Partnerships (DFPTF) Development Finance (DFi)

Presentation Outline GEF Governance Structure Roles and Responsibilities of the Trustee The GEF Funds Flow Financial Procedures Agreement Reporting Requirements under the FPA GEF Trustee Team

GEF Governance Structure GEF Council Accountable to the Council Holds in trust the assets which constitute the Fund Several World Bank departments involved (DFPTF, CTR, LEG, TRE) GEF Secretariat at World Bank (functionally independent) World Bank as Trustee for GEF Trust Fund World Bank UNDP UNEP Administers the Fund in accordance with the provisions of the Instrument Implementing Agencies STAP Cooperate and coordinate I. The Role of the Trustee

Roles and Responsibilities of the Trustee Trustee’s role and fiduciary responsibilities are set forth in the GEF Instrument, Annex B. Resource Mobilization Resource mobilization – Replenishment Financial management Contribution management, implementation of GEF Replenishment, etc. Investment management of GEF resources held in trust. Financial projections and cash flow forecasting. Recording of funding decisions and monitoring of funding availability for GEF Trust Fund. Transfer of funds to agencies under provisions of FPA. Reporting and Compliance Prepare semi-annual reports for Council on the financial situation of GEF Trust Fund. Prepare monthly reports for Secretariat on funds availability and the status of contributions paid-in. Coordinate external audit of the GEF Trust Fund and provide financial statements of the GEF Trust Fund. Provide input to GEF Business Plans and Budgets for submission to Council. Ensure compliance with Instrument and other legal documents. Resource mobilization – Replenishment negotiations () Financial management: Contribution management: Implementation of the replenishment resolution, management of Promissory Notes and Accounts receivable, track and call receivables and collect payments, Manage day-to-day donor relations/enquiries, provide standard reporting to donors, etc. Investment management: Convert currencies, as necessary; Invest liquid assets of GEF in a benchmarked co-mingled Trust Fund Portfolio; Periodic review of risk profile and asset composition of benchmark; Determine best investment pool as part of World Bank trust fund portfolio; and Allocate investment income monthly. Track funding decisions and manage commitment authority Ensure IA commitments remain within Council-approved level We provide oversight to ensure that Implementing Agency commitments are within the levels approved by Council. Transfer of funds to agencies based on requests from Agencies. Use of funds: Under the existing arrangement in the GEF, Agencies that access GEF resources are accountable to the Council for use of GEF resources made available to them for implementation/execution. The Trustee is not responsible for end use of GEF Resources. The Trustee’s responsibility for monitoring the use of GEF funds limited. It is fulfilled by, and limited to, receiving required financial reports from the agencies, and suspending commitment and disbursement to agencies in the event of protracted non-compliance with the reporting requirements under the FPAs. Compliance and reporting: Prepare financial reports to Council on financial situation of GEF TF and status of donor pledges (every Council meeting) Report to Secretariat on fund availability for Council work program and the status of contributions paid (Monthly) Coordinate external auditing of the GEF Trust Fund. As needed, arranging for Agency audit. Prepare Business Plans and Budgets for submission to Council Ensure compliance with Instrument and other legal documents Trustee screens the Agency’s audit report for any inconsistencies. If any found, Trustee would bring up the matter to the attention of the GEF CEO and the Council. System infrastructure to fulfill Trustee responsibilities (including FIF IT platform) [touch upon the discussion on FIF IT platform during June 2012 Council meeting].

The GEF Funds Flow [for Full size Project] Implemen-tation Replenishment and Contribution Management Funding Decisions Restricted resources Cash received (USD) Note received Note encashed Funding Committed by Trustee Funding Endorsed by CEO Funding Set aside by Trustee Funding Approved by Council Returned Funds from Agencies Released from Commitment Release from set-aside “Billing”: IoC deposited with Trustee “Pledge”: Recorded Funding Availability for programming decision Transferred to Agencies

Financial Procedures Agreements A set of legal documents governing the business relationship between the IBRD as the Trustee of the GEF Trust Fund and the GEF Agencies, setting definitions and rules for: Commitment of funds by Trustee Amount, date of Council approval/CEO endorsement Letters of Commitment Setting financial liability for Agencies including adjustments for cancellation and closed projects and fees Transfer of funds to GEF Agency Use of funds by GEF Agency In accordance with Agency’s policies and procedures Trustee is not responsible for use of funds by Agency Reflows from GEF Agency to the Trustee Investment income arrangements Reporting requirements (Quarterly, Semi-annual and Annual)

Reporting Requirements under the FPA Section 12.2- Information provided to the Trustee are as follows: (a) Quarterly Report on Agency Approvals (b) Quarterly Report on Agency Project Cancellations (c) Quarterly Report on Agency Fee Cancellation (d) Quarterly Report on Financially Closed Projects (e) Quarterly Report on Reflows of Funds (f) Investment Income Report for the Semester (g) Annual Financial Statement (h) Other reports as my be requested by Trustee Section 12.3 – Annual Reconciliation Report will be provided by Trustee to the Agency for Agency’s conformity within 45 days after receipt of the report. In the event of discrepancy, Agency must inform Trustee and reconcile the information contained in the report.

GEF Trustee Team Team Lead – Client relations and Fund management: Mr. Praveen Desabatla (pdesabatla@worlbank.org) Portfolio management, Analytics and Reporting: Mr. Chandrasekhar Sirigiri (csirigiri@worldbank.org ) Contribution management and Agency liaison: Ms. Marizmelda Carbonell Dugayo (mdugayo@worldbank.org) Disbursement management and Internal Controls: Ms. Lewam Afework Nerayo (lnerayo@worldbank.org) Operational Support Ms. Rahayu Novianty (rnovianty@worldbank.org)

We welcome your questions.