Multi-Donor Trust Funds & Joint Programmes

Administrative Agent

Multi-Donor Trust Funds | Joint Programmes | UNDP MDTF Office

Under the pass-through fund management modality donor contributions to a Multi-Donor Trust Fund (MDTF) or a Joint Programme (JP) are channelled through one of the Participating UN Organizations, referred to as the Administrative Agent (AA). The AA is jointly selected by all Participating UN Organizations and acts as their donor interface.

In selecting the AA, the Participating UN Organizations take the following elements into consideration: i) country presence; ii) financial and administrative capacity to interface between donor(s) and participating UN organizations; and iii) thematic, functional and geographical area of expertise in the area covered by the programme.

Principal functions of the AA include:

• Conclude Memorandums of Understanding (MOUs) with Participating UN Organizations and Standard Administrative Arrangements (SAAs; formerly known as Letter of Agreement, LOA) with donors;
• Receive and administer donor contributions on behalf of the Participating UN Organizations;
• Disburse funds to Participating UN Organizations as instructed by the fund allocating Steering Committee or equivalent mechanism;
• Report on the sources and uses of donor contributions received;
• Consolidate periodic progress reports from Participating UN Organizations for submission to donors and/or the decision-making body of the MDTF;
• Consolidate key audit recommendations received from the auditors of the Participating UN Organizations as well as the audit of the AA.

As AA of MDTFs and JPs, UNDP’s management fee to cover the cost of performing the above functions is one percent (1%) of total donor contribution, deducted at the time of donor deposits. The one percent management fee is based on an assumption of a minimum contribution by each donor as well a minimum total amount of resources in order to make the one percent viable to cover the AA’s costs for the duration of the MDTF/JP.

When UNDP is selected as the AA, the accountability for UNDP’s function as AA in MDTFs and JPs using pass-through arrangements has been delegated to the Executive Coordinator of the MDTF Office, reporting to the Assistant Administrator and Director of the Partnerships Bureau, in accordance with the policy governing "UNDP’s Accountability when acting as Administrative Agent in MDTFs and/or UN Joint Programmes using the pass-through fund management modality".