Frequently Asked Questions (FAQs)
What is a Multi-Donor Trust Fund?
What is a Joint Programme?
What is the pass-through fund management model?
Who can receive funding through MDTF or JP?
Can Governments or Non-Governmental Organisations (NGOs)
receive MDTF/JP funding?
What is the difference between UNDP’s roles as Administrative
Agent and Participating UN Organization?
Who should donors contact to make a contribution to
an MDTF or JP?
Is there guidance on the set up and operations of an MDTF Steering Committee?
- What is a Multi-Donor Trust Fund?
A Multi-Donor Trust Fund (MDTF) is a funding
instrument through which donors can pool resources that are then disbursed
by an Administrative Agent (AA) in accordance with instructions from the
Fund’s decision-making structure. MDTFs can be important instruments
for resource mobilization, donor coordination, policy dialogue and the
provision of coordinated support for humanitarian, recovery, reconstruction
and development assistance that are based on national priorities.
- What is a Joint Programme?
A Joint Programme (JP) is a set of
activities contained in a common work plan and related budget, involving
two or more UN organizations and (sub-) national partners. The work plan
and budget forms part of a JP Document, which also detail roles and responsibilities
of partners in coordinating and managing the joint activities. The JP
Document is signed by all Participating UN Organizations and (sub-) national
partners.
- What is the pass-through fund management
model?
In the context of a Joint Programme,
under a pass-through fund management modality, two or more organizations
develop a JP, identify funding gaps and submit a JP Document to Donor(s). If the Donor(s) and Participating UN
Organizations agree to channel the funds through one Participating
UN Organization, then the pass-through modality applies. The UN organization
channelling resources, called the Administrative
Agent (AA) would be jointly selected by all Participating UN Organizations.
In the context of MDTFs, the pass-through modality is usually the preferred
fund management modality.
- Who can receive funding through MDTF or JP?
All Participating UN Organizations
that have signed an MOU with the AA and are involved in the implementation
of MDTF/JP projects and Non-UN Participating
Organizations that have similar international character as the UN
and internationally recognized Financial Rules and Regulations and have
signed a separate MOU to support the implementation of MDTF or JP projects
may receive MDTF or JP funds.
- Can Governments or Non-Governmental Organisations
(NGOs) receive MDTF/JP funding?
Participating UN Organizations have
established mechanisms to execute and implement projects through national
entities and other national, regional or international organizations,
and non-governmental organizations (NGOs). These Implementing
Organizations receive funds through one of the Participating UN Organizations
that assumes financial and programmatic accountability. Participating
UN Organizations use their respective standard arrangements for transferring
funds to Implementing Organizations.
- What is the difference between UNDP’s
roles as Administrative Agent and Participating UN Organization?
UNDP has two distinct roles in UN-managed MDTFs
and JPs. It serves as an Administrative
Agent (AA) while also acting as a Participating
UN Organization. When UNDP serves as an AA, it exercises fund management
responsibility, whereas while as a Participating UN Organization, it implements
activities using MDTF and JP resources in line with its development mandate
and practice areas. To avoid any real or perceived conflict of interest
between its fund management and programmatic roles, UNDP has taken measures
to “firewall” its AA and Participating UN Organization functions.
This arrangement has been issued as a policy governing “UNDP’s
Accountability when acting as Administrative Agent in MDTFs and/or UN
Joint Programmes using the pass-through fund management modality”.
- Who should donors contact to make a contribution
to an MDTF or JP?
Donors who wish to contribute to a MDTF or JP that uses the pass through
fund management modality are required to sign a standard Letter of Agreement
(LOA) with the Administrative Agent. The LOA sets out the terms and conditions
governing the receipt and administration of the contribution by the Administrative
Agent and the transfer to the Participating UN Organizations. Further
information is available under each MDTF or by contacting the MDTF Office.
- Is there guidance on the set up and operations of an MDTF Steering Committee?
The TORs for individual MDTFs generally stipulates the establishment
of a Steering Committee to oversee and coordinate the operations of the
MDTF, and provide strategic guidance and oversight. To guide the work
of the Steering Committee a separate Terms of Reference and Rules of Procedures
(SC TOR & ROP) that is unique to the particular fund, is developed
that sets out the terms and conditions and rules of procedure governing
the Steering Committee. See individual MDTFs
for examples of such SC TOR & ROPs.
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