1. UN in Tanzania Criteria for allocation of One UN Fund resources Presentation to the UN Country Management Team 26 October 2007

2. Key objectives for the criteria. The criteria are informed by the following priorities: Responding to Tz needs under GoT leadership Compliance with JAST and Paris Principles UN reform – not business as usual Prioritising development objectives (where resource short-falls demand) Efficiency and effectiveness – performance driven

3. Overview Eligibility National priorities, ownership and alignment Capacity to deliver / absorb Detailed planning for implementation Initial allocation Subsequent allocations

4. Eligibility of programmes for initial allocation National priorities ownership and alignment to JAST, MKUKUTA, MKUZA Capacity of UN and National partners to deliver the programme (These criteria have already been applied to the current pilot One UN Programme) Detailed planning for programme implementation (This criterion has not been fully applied to all the joint programmes)

5. Initial allocation........... Prioritisation criteriaPercentage Ranking Distance from MDGs Is the programme aimed at achieving outcomes related to the relevant MDG? New ways of doing things in line with UN reform Extent to which the programme represents change from business as usual to the One UN Extent to which the programme contributes to meeting the Paris Declaration on Aid Effectiveness principles UN own resources Level of funding commitment by the UN to the One Programme

6. Subsequent allocations........... Criteria Eligibility for subsequent funds allocationYes/No Has the programmes extended its work plan by 6 months? Has the programme met its reporting obligations? Are activities still relevant? Have programme outcomes been reviewed and results used to adjust strategy? Funding allocation criteria Rank (percentage) To what extent have the (delivery) performance targets been met? To what extent have the (process) performance targets for the One UN Programme been met?

7. One UN Fund allocation cycle Subsequent fund allocations to be determined by the programme reporting cycle developed by the RCO and approved by the MDTFO Subsequent fund allocation linked to the output and outcome evaluation cycle Information to be used to assess criteria for fund allocation will be sourced from these two reporting processes

8. One UN Fund Allocation Criteria November Initial allocation November Subsequent allocation May Subsequent allocation Eligibility of programmes National ownership & priorities Capacity for delivery Planning for implementation >75% one UN fund 75% of annual unfunded budget <75% one UN fund Distance from MDG New way of doing things UN own resources Eligibility Extended 6 months work plan Reporting obligations Relevance of activities Review of outcomes to re-strategise Funds allocation Annual programme performance targets UN reform process indicators

9. Application of initial allocation criteria

11. Application of subsequent allocation criteria……. Subsequent allocation Funds allocation Annual programme performance targets UN reform process indicators One UN Fund >75% funded Allocation of % (of performance targets achieved) funds for 9 months minus unspent funds One UN Fund < 75% funded Same as above but allocating to JP ranked the highest 100% of 9 months cash forecast less budget balance, starting with JP ranked the highest

12. Subsequent funds allocation Application of the subsequent allocation criteria when One UN Fund is over 75% funded Allocation is calculated on the basis of the average percentage score (PS) multiplied by the 9 month cash flow forecast (CF) minus budget balance (BB) Allocation =PS x (CF- BB) Example =60% x (1,000,000-100,000) =540,000 USD

13. Application of subsequent allocation criteria – Option 1 One UN Funded < 75% funded = PS x (CF – BB)

14. Application of subsequent allocation criteria – Option 2 Allocation = CF - BB

15. UN in Tanzania Criteria for allocation of One UN Fund resources Comments