Oversight

In order to harmonize and strengthen the fiduciary management oversight of Multi-Donor Trust Funds (MDTFs), an Oversight Framework has been developed by the United Nations Development Group (UNDG). In the context of MDTFs, “oversight” is defined as ‘the supervision of inter-agency MDTF activities of entities participating in MDTFs, with joint authority and responsibility to control, or exercise significant influence over, the inter-agency fiduciary decisions emanating from the operations of the MDTFs’.

The UNDG MDTF Fiduciary Management Oversight Framework consists of:

• A Steering Committee at country-level will direct and manage MDTFs in accordance with its specific Terms of Reference
• An Assistant Secretary-General (ASG) Group at headquarters level will address high level policy and fiduciary management oversight issues of inter-agency nature that are referred to it by the MDTF Fiduciary Management Oversight Group (FMOG). The ASG Group will also agree on the proposed governance structure of the MDTFs, based on the proposal from the UN Country Team and the respective Government, when there are departures from the standard governance structure.
• A Fiduciary Management Oversight Group (FMOG) at headquarters level will be the first point of contact in headquarters for fiduciary matters on MDTFs where the fiduciary and legal dimensions of the MDTF will be discussed. The FMOG has responsibilities covering management review and oversight, assurance and reporting as well as MDTF guidance. It will refer issues for decision of the ASG Group only on an exceptional basis when a consensus between Agencies cannot be reached or in politically sensitive cases.

MDTF Fiduciary Management Oversight Framework
(inter-agency issues)