Amount approved by the Steering Committee for a project/programme.
A project/programme including budget, etc., that is approved by the Steering Committee for fund allocation purposes.
Amount(s) committed by a donor to a Fund in a signed Standard Administrative Arrangement with the UNDP Multi-Partner Trust Fund Office (MPTF Office), in its capacity as the Administrative Agent. A commitment may be paid or pending payment.
Cash deposit received by the MPTF Office for the Fund from a contributor in accordance with a signed Standard Administrative Arrangement.
The percentage of funds that have been utilized, calculated by comparing expenditures reported by a participating organization against the net funded amount.
Indirect support costs
A general cost that cannot be directly related to any particular programme or activity of the participating organizations. UNDG policy establishes a fixed indirect cost.
Net funded amount
Amount transferred to a participating organization, less any refunds transferred back to the MPTF Office by a participating organization.
A UN organization or other intergovernmental organization that is an implementing partner in a Fund, as represented by signing a memorandum of understanding (MOU) with the MPTF Office for a particular Fund.
The sum of expenses and/or expenditure reported by all participating organizations for a Fund irrespective of which basis of accounting each participating organization follows for donor reporting.
Project financial closure
A project or programme is considered financially closed when all financial obligations of an operationally completed project or programme have been settled, and no further financial charges may be incurred.
Project operational closure
A project or programme is considered operationally closed when all programmatic activities for which the participating organization(s) received funding have been completed.
Project start date
Date of transfer of first instalment from the MPTF Office to the participating organization.
Total approved budget
This represents the cumulative allocations approved by the Steering Committee.
US dollar amount
The financial data in the report is recorded in US dollars. Due to rounding, totals may not exactly match the sum of the recorded elements.
This Consolidated Annual Financial Report of the UN-REDD Programme Fund is prepared by the United Nations Development Programme (UNDP) Multi-Partner Trust Fund Office (MPTF Office) in fulfillment of its obligations as Administrative Agent, as per the terms of Reference (TOR), the Memorandum of Understanding (MOU) signed between the UNDP MPTF Office and the Participating Organizations, and the Standard Administrative Arrangement (SAA) signed with contributors.
The MPTF Office, as Administrative Agent, is responsible for concluding an MOU with Participating Organizations and SAAswith contributors. It receives, administers and manages contributions, and disburses these funds to the Participating Organizations. The Administrative Agent prepares and submits annualconsolidatedfinancialreports,aswellas regularfinancialstatements, for transmission to stakeholders.
This consolidated financial report covers the period 1 January to 31 December 2021 and provides financial data on progressmade in the implementation of projects of the UN-REDD Programme Fund. It is posted on the MPTF Office GATEWAY
2021 FINANCIAL PERFORMANCE
This chapter presents financial data and analysis of the UN-REDD Programme Fund using the pass-through funding modality as of 31 December 2021. Financial information for this Fund is also available on the MPTF Office GATEWAY, at the following address: https://mptf.undp.org/factsheet/fund/CCF00
1. SOURCES AND USES OF FUNDS
As of 31 December 2021, 7 contributors deposited US$350, 482,970 and US$3,369,635 was earned in interest. The cumulative source of funds was US$ 353,852,605. Of this amount, US$ 336,449,011 has been net funded to 3 Participating Organizations, of which US$ 324,853,578 has been reported as expenditure. The Administrative Agent fee has been charged at the approved rate of 1% on deposits and amounts to US$3,238,913. Table 1 provides an overview of the overall sources, uses, and balance of the UN-REDD Programme Fund as of 31 December 2021.
TABLE 1 FINANCIAL OVERVIEW, AS OF 31 DECEMBER 2021 (IN US DOLLARS)
2. PARTNER CONTRIBUTIONS
Table 2 provides information on cumulative contributions received from all contributors to this fund as of 31 December 2021.
The UN-REDD Programme Fund is currently being financed by 7 contributors, as listed in the table below.
The table includes financial commitments made by the contributors through signed Standard Administrative Agreements with
an anticipated deposit date as per the schedule of payments by 31 December 2021 and deposits received by the same date. It does not include commitments that were made to the fund beyond 2021.
TABLE 2. CONTRIBUTIONS, AS OF 31 DECEMBER 2021 (IN US DOLLARS)
3. INTEREST EARNED
Interest income is earned in two ways: 1) on the balance of funds held by the AdministrativeAgent (Fund earned interest), and 2) on the balance of funds held by the Participating Organizations (Agency earned interest) where their Financial Regulations and Rules allow return of interest to the AA.
As of 31 December 2021, Fund earned interest amounts to US$ 2,666,626.
Interest received from Participating Organizations amounts to US $703,009, bringing the cumulative interest received to US$ 3,369,635. Details are provided in the table below.
TABLE 3. SOURCES OF INTEREST AND INVESTMENT INCOME, AS OF 31 DECEMBER 2021 (IN US DOLLARS)
4. TRANSFER OF FUNDS
Allocations to Participating Organizations are approved by the Steering Committee and disbursed by the Administrative Agent. As of 31 December 2021, the AA has transferred US$ 339,797,903 to 3 Participating Organizations (see list below).
Table 4 provides additional information on the refunds received by the MPTF Office, and the net funded amount for each of the Participating Organizations.
TABLE 4. TRANSFER, REFUND, AND NET FUNDED AMOUNT BY PARTICIPATING ORGANIZATION (IN US DOLLARS)
5. EXPENDITURE AND FINANCIAL DELIVERY RATES
All final expenditures reported are submitted as certified financial information by the Headquarters of the Participating Organizations. These were consolidated by the MPTF Office.
Project expenditures are incurred and monitored by each Participating Organization, and are reported to the Administrative Agent as per the agreed upon categories for inter-agency harmonized reporting. The expenditures are reported via the MPTF Office’s online expenditure reporting tool. The 2021 expenditure data has been posted on the MPTF Office GATEWAY at
5.1 EXPENDITURE REPORTED BY PARTICIPATING ORGANIZATION
In 2021, US$ 14,139,530 was net funded to Participating Organizations, and US$15,311,950 was reported in expenditure.
As shown in table below, the cumulative net funded amount is US$ 336,449,011 and cumulative expenditures reported by the Participating Organizations amount to US$ 324,853,578. This equates to an overall Fund expenditure delivery rate of 96.55
TABLE 5.1 NET FUNDED AMOUNT AND REPORTED EXPENDITURES BY PARTICIPATING ORGANIZATION, AS OF
31 DECEMBER 2021 (IN US DOLLARS)
5.2. EXPENDITURE BY PROJECT
The net funded amounts,expenditures reported and the financial delivery rates by project and Participating Organization.
TABLE 5.2 EXPENDITURE BY PROJECT, GROUPED BY COUNTRY
Indirect Support Costs charged by Participating Organization, based on their financial regulations, can be deducted up front or at a later stage during implementation. The percentage may therefore appear to exceed the 7% agreed-upon for on-going projects. Once projects are financially closed, this number is not to exceed 7%.
6. COST RECOVERY
Cost recovery policies for the Fund are guided by the applicable provisions of the Terms of Reference, the MOU concluded between the Administrative Agent and Participating Organizations, and the SAAs concluded between the Administrative Agent and Contributors, based on rates approved by UNDG.
The policies in place, as of 31 December 2021, were as follows:
• The Administrative Agent(AA) fee: 1% is charged at the time of contributor deposit and covers services provided on that contributionfor the entire duration of the Fund. In the reporting period US$ 167,364 was deducted in AA-fees. Cumulatively, as of 31 December 2021, US$ 3,238,913 has been charged in AA- fees.
• Indirect Costs of Participating Organizations: Participating Organizations may charge 7% indirect costs. In the current reporting period US$ 1,000,021 was deducted in indirect costs by Participating Organizations. Cumulatively, indirect costs amount to US$ 21,156,971 as of 31 December 2021.
7. ACCOUNTABILITYAND TRANSPARENCY
In order to effectively provide fund administration services and facilitate monitoring and reporting to the UN system and its partners, the MPTF Office has developed a public website, the MPTF Office Gateway(https://mptf.undp.org). Refreshed in real time every two hours from an internal enterprise resource planning system, the MPTF Office Gateway has become a standard setter for providing transparent and accountable trust fund administration services.
The Gateway provides financial information including: contributor commitments and deposits, approved programme budgets, transfers to and expenditures reported by Participating Organizations, interest income and other expenses. In addition, the Gateway provides an overview of the MPTF Office portfolio and extensive information on individual Funds, including their purpose, governance structur eand key documents. By providing easy access to the growing number of narrative and financial reports, as well as related project documents, the Gateway collects and preserves important institutional knowledge and facilitates knowledge sharing and management among UN Organizations and their development partners, thereby contributing to UN coherence and development effectiveness.