1. OPERATIONAL EFFECTIVENESS OF THE UN MDTF MECHANISM UNDG-DONOR MEETING ON MDTFs, 24 JUNE 2011

2. BACKGROUND  LAUNCHED END MARCH 2011; FINALIZED END MAY 2011  LED BY JOINT FUNDING SUB-COMMITTEE; APPROVED BY FIDUCIARY MANAGEMENT OVERSIGHT GROUP  PURPOSE: EXAMINE THE OPERATIONAL EFFECTIVENESS OF UN MDTFs  FOCUSED ON MDTFs, BUT SOME RECOMMENDATIONS APPLY TO JOINT PROGRAMMES

3. KEY FINDINGS UN MDTF has proven to be:  An effective mechanism  to support high priority multi-agency UN programmes  with over $3 billion delivered through 36 participating organizations Use of the MDTF mechanism promotes :  UN coherence,  national ownership, and  donor coordination

4. KEY RECOMMENDATIONS & MANAGEMENT RESPONSE A. MDTF STRATEGIC POLICY AND ADVOCACY  AGREE ON A COMMON UN VISION FOR STRATEGIC PURPOSE AND USE OF MDTFs  STRENGTHEN UN – WORLD BANK PARTNERSHIPS  REGULARIZE UND-DONOR CONSULTATIONS

5. KEY RECOMMENDATIONS & MANAGEMENT RESPONSE (CONTINUED) B. UNIVERSALIZE STANDARDS & PRACTICE  SEEK UNIVERSAL APPLICATION OF STANDARD DOCUMENTS AND CLAUSES, including:  UNDG MEMBERS FOLLOWING THE AGREEMENT ON 7% INDIRECT SUPPORT COST  1% AA FEE IS A REASONABLE ESTIMATE FOR SERVICES REQUIRED BY AA PROTOCOL  STRENGTHEN LEARNING & SPREADING OF BEST PRACTICES

6. KEY RECOMMENDATIONS & MANAGEMENT RESPONSE (CONTINUED) C. STRENGTHEN ACCOUNTABILITY MECHANISM  ANNUAL REPORTING WILL CONTINUE THROUGH ADMINISTRATIVE AGENTS

7. KEY RECOMMENDATIONS & MANAGEMENT RESPONSE (CONTINUED) D. MAXIMIZE OPERATIONAL FLEXIBILITY & REDUCE TRANSACTION COSTS  ADVOCATE FOR MAXIMUM LEVEL OF FLEXIBILITY  PREDICTABLE & LONG-TERM FUNDING ENHANCES THE EFFECTIVENESS OF MDTFs

8. COMMENTS & QUESTIONS ARE WELCOME  VISION  CONTINUOUS IMPROVEMENT  KNOWLEDGE SHARING  INTEGRATION  UN – WORLD BANK PARTNERSHIP