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

2. 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

3. 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

4. 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].

5. 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

6. 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)

7. Reporting Requirements under the FPA
Section 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.

8. GEF Trustee Team Team Lead – Client relations and Fund management:
Mr. Praveen Desabatla
Portfolio management, Analytics and Reporting:
Mr. Chandrasekhar Sirigiri )
Contribution management and Agency liaison:
Ms. Marizmelda Carbonell Dugayo
Disbursement management and Internal Controls:
Ms. Lewam Afework Nerayo
Operational Support
Ms. Rahayu Novianty

9. We welcome your questions.