business operations strategy · business operation strategy for ethiopia: 2016-2020 5 foreword from...

Business Operation Strategy for Ethiopia: 2016-2020

BOS 2.0

The Office of the UN Resident CoordinatorUNECA Compound, Congo Building, 7th Floor South WingAddis Ababa, Ethiopia Telephone: +251-115-444465www.et.one.un.org

BUSINESSOPERATIONSSTRATEGY

BOS 2.0

BUSINESSOPERATIONS

STRATEGY

BOS 2.0


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ContentsList of Tables .............................................................................................................................................................................. 3

Foreword from the UN Resident Coordinator ................................................................................................................ 5

Foreword from BOS Committee Chair and OMT Co-Chair ........................................................................................ 7

Acknowledgements .............................................................................................................................................................. 9

Abbreviation and Acronyms .............................................................................................................................................. 10

Executive Summary .............................................................................................................................................................. 12

CHAPTER 1: Introduction ................................................................................................................... 131.1. Country Context .................................................................................................................................................. 14

1.2. The UNDAF National Development Plan and SDGs ................................................................................ 14

1.3. Value Drivers of BOS - Global Perspectives of BOS .................................................................................. 15

1.4. BOS Priority Areas .............................................................................................................................................. 15

1.4.1. Pillar 1 - Common Procurement Services ...........................................................................................16

1.4.2. Pillar 2 - Common Finance Services .................................................................................................. 17

1.4.3. Pillar 3 - Harmonized Approach to Cash Transfers ............................................................................... 17

1.4.4. Pillar 4 - Human Resources and Common Premises Services ................................................. 18

1.4.5. Pillar 5 - Common Business Continuity Management & Information and Communications Technology Services ........................................................................ 18

1.4.6. Pillar 6 - Host Country Agreement/ Legal ........................................................................................... 19

1.5. Sustainability in Business Operations ....................................................................................................... 20

1.6. Lease Vs Purchase analysis and decisions. .................................................................................................. 20

CHAPTER 2: Business Operations Analysis .................................................................................. 222.1. Stock Take ........................................................................................................................................................... 22

2.1.1. Pillar 1 - Common Procurement Service ......................................................................................... 22

2.1.2. Pillar 2 - Harmonized Approach to Cash Transfers ....................................................................... 23

2.1.3. Pillar 3 - Business Continuity Management ................................................................................. 23

2.1.4. Pillar 4 - Human Resources ................................................................................................................. 23

2.1.5. Pillar 5 - Information and Communications Technology ......................................................... 24

2.1.6. Pillar 6 - Host Country Agreement/ Legal ...................................................................................... 24

2.1.7. Pillar 7 - Support to the Coordination of Common Operations ............................................ 25

2.2. Needs and Opportunities Analysis .............................................................................................................. 25

2.2.1. Common Procurement Services ........................................................................................................ 25

2.2.2 Human Resources and Common Premises Services ................................................................... 28

2.2.3 Common Finance Services ................................................................................................................... 28

2.2.4 Common Business Continuity Management & Information and Communications Technology Services .............................................................................................................................. 31

2.2.5. Host Country Agreement/ Legal Service ....................................................................................... 32

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2.2.6. Needs and Opportunities Analysis Summary ............................................................................... 32

2.3. Cost-Benefit Analysis ........................................................................................................................................... 35

2.3.1. Coordination costs of the OMT ........................................................................................................... 36

2.3.2. Coordination Costs of the Common Services Coordinator (RCO) ............................................ 37

2.3.3. Common Procurement Services ......................................................................................................... 38

2.3.4. Coordination Costs of CP WG Members ......................................................................................... 42

2.3.5. Procurement Coordination Cost of the OMT, CP WG Members and RCO ............................ 43

2.3.6. Cost Benefit Analysis (CBA) for New Common Procurement Services .................................. 49

2.3.7. Common Finance Services .................................................................................................................... 50

2.3.8. Common Finance Services Coordination Cost ............................................................................ 51

2.3.9. Cost Benefit Analysis Common Finance Services ....................................................................... 52

2.3.10. Harmonized Approach to Cash Transfers ................................................................................. 52

2.3.11. Harmonized Approach to Cash Transfer Coordination Costs ........................................... 54

2.3.12. Cost Benefit Analysis (CBA) for new common services for HACT ...................................... 55

2.3.13. Human Resource and Common Premises Services ............................................................... 55

2.3.14. Human Resource and Common Premises Services Coordination Costs ....................... 58

2.3.15. Cost Benefit Analysis (CBA) for New Common HR Services ................................................. 60

2.3.16 Summary of Cost-Benefit Analysis for all New Common Services in the BOS 2.0 ....... 60

2.3.17. Prioritization of Common Services .................................................................................................. 61

CHAPTER 3: BOS 2.0 Results Framework ………………………....................................................... 623.1. BOS 2.0 Results Framework ............................................................................................................................... 62

3.2. BOS 2.0 Results Alignment with SDGs and UNDAF ................................................................................. 67

CHAPTER 4: Monitoring and Evaluation Plan .................................................................................... 694.1. Monitoring and Evaluation ............................................................................................................................... 69

4.2. Information and Knowledge Management (IKM) platform ............................................................... 69

CHAPTER 5: Governance Structures and Accountability Mechanisms ............................................ 715.1. Governance and accountability structures for the BOS 2.0 ................................................................ 71

CHAPTER 6: BOS 2.0 Common Budgetary Framework ................................................................. 756.1. Resource Requirements, Cost Sharing Arrangements and the Common Budgetary Framework .... 76

Annex 1: Results of Stock Taking Analysis .................................................................................... 77Annex 2: BOS 2016-2020 Results Framework ................................................................................ 83Annex 3: Detail BOS 2016-2020 Results Framework: .................................................................... 86Annex 4: Terms of Reference for OMT and OMT Working Groups ................................................. 93Annex 5: Membership list of OMT and OMT Working Groups ........................................................ 102Annex 6: Sustainable Development Goals (SDGs) ....................................................................... 108 Annex 7: BOS 2.0 (July 2016 – June 2020) Total Budget and Investment & Financing Plan…...108Annex 8: BOS 2.0 (July 2016 – June 2020) Annual Work Plan (AWP)………………………....112


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List of Tables Table 1.1: BOS 2.0 Projected Benefits ............................................................................................................................. 12

Table 1.2: List of Pillars for BOS 2.0 ............................................................................................................................. 15

Table 2.1: List of Identified Categories of Goods and Services for Inter-Agency LTA ............................... 25

Table 2.2: Needs and Opportunities and Key Performance Indicator (KPI) .................................................... 32

Table 2.3: Coordination Cost of the OMT Members in Managing different OMT Working Groups ........ 37

Table 2.4: Total Cost of the Common Service Coordination of the 6 OMT Working Groups ..................... 38

Table 2.5: Standard Procurement Process with and without LTA ...................................................................... 39

Table 2.6: One-Time Monetary Cost (Advertisement Cost) .................................................................................. 40

Table 2.7: One-Time Labor Cost (LTA Development Cost) ................................................................................... 41

Table 2.8: Recurring Labor Cost (LTA Renewal Cost) .............................................................................................. 42

Table 2.9: Annual Coordination Cost of the CP WG Members .............................................................................. 42

Table 2.10: Total Annual Coordination Cost to the CP WG .................................................................................. 43

Table 2.11: Total LTA development, LTA Renewal Cost and Total Coordination Cost ................................... 43

Table 2.12: Monetary Benefit due to 7% Cost Reduction .................................................................................... 45

Table 2.13: LTA Benefit-LTA Savings on Staff time .................................................................................................... 46

Table 2.14: Labor Cost Saving-Recurring Benefit ........................................................................................................ 47

Table 2.15: Total Cost and Projected Annual Saving of Procurement ................................................................. 48

Table 2.16: Cost Benefit Analysis (CBA) for the CP WG ....................................................................................... 49

Table 2.17: Amount of Loss on Foreign Currency Exchange Rate dealing ......................................................... 50

Table 2.18: One-Time and Recurring Cost-Monetary Cost for the Common Finance Service .................... 51

Table 2.19: Annual Coordination Cost of FWG Members .................................................................................... 51

Table 2.20: Cost Benefit Analysis for Common Finance Service ................................................................... 52

Table 2.21: Cost Saving from Joint Micro-Assessment of Shared IPs ................................................................. 52

Table 2.22: Cost Saving from Joint Capacity Development Training .................................................................. 53

Table 2.23: Activity Based Costing (ABC) Method of Audit by Agency ................................................................ 53

Table 2.24: Labor Cost Saving from Joint HACT Audit ......................................................................................... 54

Table 2.25: Recurring Monetary Cost for HACT Working Group ........................................................................... 54

Table 2.26: Annual Coordination Cost of HACT WG Members ............................................................................ 54

Table 2.27: Cost Benefit Analysis (CBA) for HACT WG ............................................................................................ 55

Table 2.28: Standard Process with and without Joint Recruitment ................................................................... 56

Table 2.29: Standard Process with and without HR Consultant Roster ............................................................ 57

Table 2.30: One-Time Monetary Cost of HR Roster for Local Consultants and Support Service Staff ...... 58

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Table 2.31: Recurring Monetary Cost of other HR and Common Premises Services .................................. 58

Table 2.32: Annual Coordination Cost of HR WG Members ..................................................................................... 59

Table 2.33: Cost Benefit Analysis (CBA) for HR WG ............................................................................................... 60

Table 2.34: Cost Benefit Analysis (CBA) for all New Common Services in BOS 2.0 .................................... 60

Table 6.1: Common Budgetary Framework ............................................................................................................... 75

Table 6.2: Total Budget for the BOS 2.0 2016-2020, Investment Plan and Investment Financing Plan ...... 76

Table A 1: Stock Taking Analysis ..................................................................................................................................... 77

Table A 2: Staff Pro-Forma Cost ....................................................................................................................................... 79

Table A 3: Bank Service Charge paid by UN Agencies (2014) ............................................................................ 79

Table A 4: Number of Staff Recruited and Training Cost of UN Agencies (2014) ......................................... 79

Table A 5: List of UN Agencies in Ethiopia .................................................................................................................... 80

Table A 6: Procurement Spending of UN Agencies in USD (2014) ..................................................................... 81

Table A 7: Procurement Spending of UN Agencies by Number of Transaction in USD (2014) ................ 82

Table A 8: Operation Management Team Members .............................................................................................. 102

Table A 9: Working Group Members ............................................................................................................................ 105


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Foreword from the UN Resident Coordinator

The Business Operations Strategy (BOS) focuses on common business processes for strategic planning, coordination, and monitoring of the UN’s joint operations with specific consideration for addressing operational gaps, and increasing coherence and efficiency. In accordance with United Nations Development Group (UNDG) good practice, the United Nations Country Team (UNCT) in Ethiopia developed the BOS 1.0 in 2013 to reflect a commitment to simplification and harmonization of the UN’s business operations for successful programme delivery and impact.

Aligning with the United Nations Development Assistance Framework (UNDAF) in Ethiopia for 2012‐2015, the BOS 1.0 has been successful in reducing internal transaction costs, improving quality of programme delivery and increasing savings over externally sourced goods and services. The UNCT therefore supports continued and expanded common business operations in Ethiopia through endorsement of the BOS 2.0.

In line with the UNDAF in Ethiopia for 2016-2020, the Operations Management Team (OMT) and BOS Committee have developed the BOS 2.0 2016-2020 with the objective of applying a comprehensive approach to the UN’s business operations in Ethiopia with the aim of continuing to enhance quality, effectiveness and efficiency of joint common services across UN System Agencies in Ethiopia.

Over the course of the BOS 2.0 development process operations and programme teams have worked hand in hand, resulting in a focused the BOS 2.0 for the next four years. The BOS 2.0 emphasizes the UNCT’s shared responsibility for and commitment to delivering results and represents the UNCT’s confidence, based on solid operational analysis, that the BOS 2.0 will support the UN System in Ethiopia to achieve a total of USD 31 million savings in material and labor cost by 2020.

I am very proud to present the BOS 2.0, which provides the UN System in Ethiopia with tangible opportunities for efficiency gains. The UNCT is fully committed to providing the necessary support to implement this strategy during the UNDAF’s cycle from July 2016 to June 2020.

Ahunna Eziakonwa-OnochieUN Resident and Humanitarian Coordinator

UNDP Resident Representative

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Signatory page

Ms. Fatouma Djama SeidFAO, Representative to Ethiopia

Ms. Maureen AchiengIOM, Chief of Mission to Ethiopia and Representative to the AU, UNECA and IGAD

Ms. Miriam MaluwaUNAIDS, Country Director

Mrs. Louise Chamberlain UNDP, Country Director

Ms. Yumiko YokozekiUNESCO - IICBA, Director and UNESCO Laision Office, OIC

Ms. Clementine Nkweta-SalamiUNHCR, Representative

Mr. Francis Mumbey-WafulaUNOAU, Administrative Officer

Ms. Letty ChiwaraUNWOMEN, Representative to Ethiopia, the AUC and UNECA

Ms. Ahunna Eziakonwa-OnochieUN Resident and Humanitarian Coordinator, UNDP Resident Representative

Mr. Andrew RugegeITU, Regional Director for Africa

Mr. Abdalmughni Nofal UNCDF, Regional Technical Advisor LDFP and Regional Coordinator SEA Region

Ms. Ingrid CyimanaUNECA, Director of Strategic Planning and Operational Quality Division

Mrs. Bettina MassUNFPA, Representative

Ms. Gillian MellsopUNICEF, Country Representative

Mr. Paul Handley UNOCHA, Head of Office

Ms. Joyce LumaWFP, Representative and Country Director

Mr. George Okutho Director, ILO Country Office for Ethiopia, Somalia, Djibouti, South Sudan and Sudan as well as Special representative to the AU and ECA

Ms. Nwanneakolam Vwede-ObhorOHCHR, Regional Representative

Dr. Milasoa Cherel-RobsonUNCTAD, Head of Regional Office for Africa, a.i.

Mr. Samba HarounaUNEP, Head of Liaison Office to AUC & ECA and Representative to Ethiopia

Mr. Aklilu Fikresilassie Kabiso, UN-HABITAT, Programme Manager - Ethiopia

Mr. Gustavo Aishemberg Giovannini UNIDO, Representative and Director of the Regional Office

Ms. Worknesh Mekonnen GonetUNOPS, Director to Ethiopia Operational Hub and Representative to AU

Dr. Akpaka KaluWHO, Representative to Ethiopia


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Foreword from BOS Committee Chair and OMT Co-Chair

Through implementation of the Business Operations Strategy (BOS) 1.0 from December 2013 to June 2016, the One UN in Ethiopia acting as one of the Pilot UNCT’s in the BOS has been able to implement various common services and other key actions to reduce its transactions costs and improve the quality of its operations support to programme delivery at the country level. Thanks to the Operations Management Team (OMT) and its Working Groups members, who provided commitment, participation and continued support for the BOS 1.0. Without their dedication the UN in Ethiopia would not have been able to achieve such success.

In the development of the BOS 2.0 the OMT, the BOS Committee and Programme Management Team (PMT) have worked together to develop common business practices that respond to the needs of the UNDAF 2016-2020. The result of this work is the BOS 2.0 comprising a four year results and budgetary framework for the period of June 2016 to July 2020.

The finalization of the BOS 2.0 has been supported by analysis that strongly indicate we will realize significant efficiency gains, cost savings and quality improvements. Through the BOS 2.0 the One UN in Ethiopia projects to achieve nearly USD 31 million in savings of material and labor cost by 2020. I believe these projected savings will be further enhanced by the recently developed Human Resources (HR) Roster for Local Consultants and Support Service Staff, and the upcoming Regional Long Term Agreement (LTA) database.

The United Nations Country Team (UNCT) in Ethiopia through the OMT will be looking into embedding sustainable procurement approach in all BOS pillars by leading by example with regards to environmental sustainability of the UN operations. The UNCT in Ethiopia believes environmentally sustainable will strive to reduce its carbon footprint. In addition, with new initiative on the development a regional Long Term Agreements (LTAs) for Ethiopia as well as five BOS implementing countries in Eastern and Sothern Africa, the UNCT supports for joint Common Procurement within the objective of cost reduction, efficiency and effectiveness gain and quality improvement. In the recent trend of reduction of management resources in the UN, the UNCT and OMT are looking into new way of working to properly manage and sustain our management budget. Hence, the OMT through the CP WG will be working together to identify Leasing Vs Buying option where the UN has opportunity lease assets, office equipment, IT equipment’s, office furniture’s, vehicles, etc. Instead of purchasing them. Last but not least, we will be looking into carpooling opportunities among UN AFP’s as we realize we have tremendous gains can also be reached there.

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I wish to take this opportunity to thank the OMT and OMT Working Groups, who remain the backbone of the Operating as One pillar of UN Delivering as One (DaO) and the development of the BOS 2.0 in Ethiopia. My sincere gratitude goes to Ms. Silper Pesa, OMT Chair, Mr. Saman Mastiyage Don, Common Operations Specialist and Mr. Getachew Sahle, BOS Consultant, for their outstanding contributions to finalization of the BOS 2.0.

Finally, throughout the BOS 2.0 development process, Ms. Ahunna Eziakonwa, Resident and Humanitarian Coordinator and the UNCT provided the OMT with exceptional leadership. I take this opportunity to sincerely thank the entire UNCT for their active support and contribution, which included supporting the OMT to mobilize USD 273,080 from the UN Development Group (UNDG) Innovation Facility to develop the BOS Monitoring and Evaluation (M&E) Tool and Regional LTA database for East Africa. These successes and the development of the BOS 2.0 as a whole reflects the achievements of the UNCT in Ethiopia working as One UN.

Janvier K. Wussinu UNDP Deputy Country Director, Operations

BOS Committee Chair and OMT Co-Chair


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Acknowledgements

The BOS 2.0 2016-2020 was developed in accordance with the guidelines provided in the United Nations Development Group (UNDG) Business Operations (BOS) User Manual in September 2016. The United Nations Country Team (UNCT) in Ethiopia endorsed the BOS 2.0 at the UNCT meeting on 7 June 2017.

We would like to thank all who have supported and contributed to the development of the BOS 2.0, in particular:

• Mr. Janvier Wussinu (UNDP), BOS Committee Chair and OMT Co-Chair; Ms. Silper Pesa (UN Women), OMT Chair and BOS Expert; Mr. Gurel Gurkan (UNOPS), BOS Expert and BOS Committee Co-Chair, for their continued guidance.

• Mr. Ayele Negesse (UNFPA), M&E Group Co-Chair for his feedback, and ensuring that the BOS is in compliance with results-based management principles.

• Mr. Francis Mumbey-Wafula (UNOAU), OMT Co-Chair; Mr. Funmi Balogun (UNDP), PMT Chair for their support throughout the BOS 2.0 development process.

• Mr. Getachew Sahle, BOS Consultant; Mr. Saman Mastiyage Don, Common Operations Specialist; and Mr. Yehalu Fisseha, Common Operations Associate for their contributions to the BOS 2.0 Retreat as well as the finalization of the BOS 2.0.

Acknowledgements are extended to colleagues who collaborated in the collection of operational data from UN System Agencies in Ethiopia, and preparation of the subsequent analyses.

For more information, please contact:

The Office of the UN Resident CoordinatorUNECA Compound, Congo Building, 7th Floor South WingAddis Ababa, Ethiopia Telephone: +251-115-444465www.et.one.un.org

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Abbreviation and Acronyms

AWP Annual Work Plan

BCM Business Continuity Management

BCP Business Continuity Plan

BOS Business Operations Strategy

BPM Business Process Map

CBA Cost-Benefit Analysis

CP WG Common Procurement Working Group

CS Common Service

DaO Delivering as One

DESA UN Department of Economic & Social Affairs

DOCO UN Development Operations Coordination Office

DSA Daily Subsistence Allowance

ECCSA Ethiopian Chamber of Commerce and Sectorial Associations

ECOSOC Economic & Social Council

FACE Fund Authorization and Certification of Expenditure

FDRE Federal Democratic Republic of Ethiopia

FWG Finance Working Group

GOE General Operating Expense

GoE Government of Ethiopia

GTP Growth and Transformation Plan

HACT Harmonized Approach to Cash Transfers

HLCM UN High-Level Committee on Management

HLCM-PN UN High-Level Committee on Management Procurement Network

HR Human Resources

ICT Information and Communications Technology

IKM Information and Knowledge Management Platform

IP Implementing Partner

KPI Key Performance Indicator

LTA Long-Term Agreement


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M&E Monitoring & Evaluation

MoFA Mistry of Foreign Affairs

MoU Memorandum of Understanding

NBE National Bank of Ethiopia

NPFM National Public and Financial Management

OMT Operations Management Team

QCPR Quadrennial Comprehensive Policy Review

RBM Results-Based Management

RCO Office of the UN Resident Coordinator

RDT Regional Director Team

SDF Sustainability Development Framework

SDGs Sustainable Development Goals

SLA Service Level Agreement

SMART Specific, Measurable, Achievable, Relevant and Time-bound

SOPs Standard Operating Procedures

ToR Terms of Reference

ToT Training of Trainers

UN United Nations

UNCT UN Country team

UNDAF UN Development Assistance Framework

UNDG UN Development Group

UNEG UN Evaluation Group

UNGM UN Global Marketplace

UNSF UN Sustainability Framework

UNSSC UN System Staff College

VATVoIP

Value-Added TaxVoice over IP (Internet Protocol)

VSAT Voice Satellite

WG Working Group

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Executive Summary Since the adoption of Delivering as One (DaO) the United Nations Country Team (UNCT) in Ethiopia has sought to continually build on the comparative advantage of all UN Funds, Programmes and Specialized Agencies (hereafter referred to as UN Agencies) to tackle the development challenges in Ethiopia. Focus has been on the implementation of common business processes, which increase the efficiency and quality of business operations to better deliver United Nations Development Assistance Framework (UNDAF) results. In order to achieve this the UNCT in Ethiopia first adopted the Business Operations Strategy (BOS) 1.0 in 2013 as a means to demonstrate their belief that common business operations are a critical enabler for effective delivery of UN development programmes, recognizing that enhancing the link between the United Nations (UN) programme efforts and the operational implications derived from that programme effort enhances efficient and effective programme delivery.

Implementation of the BOS 1.0 in Ethiopia featured in the UNDG BOS Pilot Programme Mid-term evaluation and highlighted the efficiency and effectiveness gains of the BOS programme globally. The projected savings and efficiency gains of the second generation BOS 2.0 based on conservative calculations show that the UN in Ethiopia can save approximately USD 31 Million over the UNDAF cycle from July 2016 to June 2020.

Table 1 1: BOS 2.0 Projected Benefits

Common Service Lines Saving Potential (USD) (%) Remarks

Pillar 1: Common Procurement Services 13,549,205 43.6Pillar 2: Common Finance Services 16,075,200.00 51.8Pillar 3: Harmonized Approach to Cash Transfer 610,590.00 1.9Pillar 4: Human Resources and Common Premises Services 812,500.00 2.7Pillar 5: Common Business Continuity Management & Information and Communications Technology Services Quality Improvement

Pillar 6: Host Country Agreement/ Legal Quality ImprovementTotal 31,047,495 100

These projected benefits will provide additional resources for programme implementation and improve the quality of business operations. The BOS 2.0 will use the Integrated Knowledge Management Platform (IKM), launched in 2016 and aimed at sharing information within the UNCT, and with relevant partners and stakeholders including the Operations Management Team (OMT), Programme Management Team (PMT), UN Communication Group (UNCG), other DaO pillars and Working Groups. The IKM platform aims to simplify procedures and lower transaction costs by improving inter-agency communications, and is designed to facilitate the efficient use of intellectual capital and resources, and to ensure organizational knowledge and results are recognized, recorded and transferred for learning purposes. As a platform for information, file and knowledge sharing, the IKM also seeks to strengthen the efficiency and effectiveness of inter-agency working groups across all pillars of DaO. The platform facilitates the collection, collation and reporting of progress and achievements to support evidence-based decision making in the future.


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IntroductionAt the 2005 World Summit in New York, global leaders called for stronger system-wide coherence across the various development focused UN System Agencies. In addition to supporting ongoing reforms aimed at building a more effective and coherent UN country presence, the document invited the Secretary-General to strengthen the management and coordination of the UN operational activities.

The last Quadrennial Comprehensive Policy Review (QCPR) in 20161 resulted in key recommendations for UN operations, among them the need to harmonize the UN’s business operations. The 2016 QCPR highlighted the need to promote harmonized business practices, including shared premises and joint back-office procurement to explore further opportunities for collaborative procurement at the global, regional and country levels. The call for a greater levels of coherence, harmonization, simplification and accountability is ever stronger in the era of the Sustainable Development Goals (SDGs). The Common Business Operations priorities of the UN aim to support realization of the SDGs through a strengthened Means of Implementation2 (MoI). The development of the

1 The QCPR is the primary General Assembly instrument to oversee how the UN development system operates in support of Member States development efforts.

2 MOI is the mix of financial resources, technology development and transfer, capacity building, inclusive and equitable globalization and trade, regional integration, as well as the creation of a national enabling environment required to implement the SDGs https://sustainabledevelopment.un.org

BOS particularly supports the UN’s contribution to SDG Goal 17 - Strengthening the means of implementation and revitalizing global partnerships for sustainable development. Through, the BOS implementation the UN is increasingly able to maximize its unique and irreplaceable role and to remain relevant in the fast changing, competitive and ever complex global landscape.

As demonstrated in countries where the BOS has been implemented, the BOS brings UN Agencies together to champion the cost effectiveness and quality improvement of the UN system, contributing to fundamental change in the operations of the UN. For instance, by increasing common business operations in crisis and fragile settings the BOS contributes to the UN staying focused on strategic and impactful results and reducing the cost of routine activities.

The BOS offers tremendous potential to achieve economies of scale, with results depending heavily on the ability of the UN development system to increase efficiency and to establish common business systems, policies and procedures. The QCPR 2016 makes a number of recommendations in this regard, including proposing greater emphasis on delivering business services at the global and regional level through intra-agency rationalization, increased use of national systems in the implementation of programmes and projects based on thorough capacity assessment processes, and the development of a standardized system of cost control in order to arrive at a shared solution for measuring, monitoring and reporting on all cost categories.

The report also recommended that UN Agencies pursue higher quality, more effective and cost efficient support services in all

Chapter 1

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programme countries. This could be achieved by reducing the duplication of functions and transaction costs through consolidating support services at the country level, either by delegating common functions to a lead agency, or establishing a common United Nations service center or, where feasible, outsourcing support services.

1.1. Country ContextEthiopia is located in the East Africa sub-region known as the Horn of Africa. Ethiopia is bordered by Sudan and South Sudan to the west; Eritrea to the north and north-east; Djibouti and Somaliland to the east; Somalia and Kenya to the south. The country’s capital city, Addis Ababa, was founded by Emperor Menelik II in 1887. Ethiopia covers an area of 1.14 million square kilometers, is the seventh largest country in Africa, and with a population of nearly 94.1 million Ethiopia is the second most populous nation in Africa comprised of more than 80 different ethnic, religious and language groups. In 1995, the Federal Democratic Republic of Ethiopia (FDRE), comprising nine states and two chartered cities was proclaimed.

Ethiopia is a founding member of the UN and the African Union, with the latter’s headquarters based in Addis Ababa. The UN in Ethiopia’s work supports six out of the seven pillars of Ethiopia’s Growth and Transformation Plan (GTP) through the United Nations Development Assistance Framework (UNDAF) focused on Sustainable Economic Growth and Risk Reduction; Basic Social Services; Governance and Capacity Development; and Women, Youth and Children.

The presence of 29 UN Agencies makes Ethiopia host to one of the largest UNCTs in the world. The UN in Ethiopia voluntarily opted

into the UN DaO reform agenda as a means to streamline its contribution to helping Ethiopia meet its development objectives. An agreement was reached between the UNDG and UNCT in December 2012 for Ethiopia to be one of nine BOS pilots. Given the number of UN Agencies and the large volume of UN operations in the country, the BOS has the potential to achieve significant cost-efficiencies and quality enhancements through the simplification and harmonization of the UNCT’s business operations.

The BOS 1.0 was implemented between December 2013 and June 2016 and has now prepared BOS 2.0 as the second generation BOS to be implemented between July 2016 and June 2020. The BOS 2.0 aligns operational and programmatic priorities reinforcing the links between UN programmes and seeks to support the UNDAF implementation.

1.2. The UNDAF National Development Plan and SDGs

The UNDAF is the common strategic framework for the operational activities of the UN system in Ethiopia. It provides a collective, coherent and integrated UN system response to national priorities and needs. As the overarching strategic programmatic framework for 29 UN Agencies in Ethiopia, the UNDAF promotes and benefits from strong Government ownership, and is guided by United Nations Development Group (UNDG) programming policies and the five key programming principles of a human rights-based approach; gender equality; environmental sustainability; capacity development; and Results-Based Management.


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On December 2015, the UN and the Government of Ethiopia (GoE) signed the fourth UNDAF 2016 – 2020 recognized as the key programming instrument of the UN in Ethiopia fully aligned to Ethiopia’s five-year national development plan, the Growth Transformation Plan II (GTP II). The GTP II is the national five-year plan of the Ethiopian Government aimed at improving the country’s economy. The UNDAF aims to ensure coherent, efficient and effective UN system operations in full alignment with national development priorities articulated in the GTP II and Sustainable Development Goals (SDGs).

1.3. Value Drivers of BOS - Global Perspectives of BOS

The overall value set for common business operations is the SDGs. When planning and implementing the BOS, the OMT will ensure the following value drivers3 are followed:

1. Effectiveness (programme delivery): The ability to meet programming needs through business operations support is the primary driver for common business operations. The ability of business operations to meet programme demands in a timely manner and with quality standards is a key factor in the effectiveness.

2. Efficiency (cost and speed of service (labour)): Common business operations focus on greater efficiency in meeting programmatic demands through a competitive price, or increased speed in service. This occurs without reducing the quality or timeliness of the required service. This includes the flexibility of business operations processes and staff to adjust the speed of service delivery to meet changing demands from the programme.

3 UNDG BOS Guidelines in September 2016

3. Access to services and quality: Some interventions in business operations may look to enhance quality or create access to new support services for programme implementation, which may not be accessible/feasible without partnership or joint buy-in. Common business operations embraces effective service delivery practices, including systemic review of service quality and cost recovery practices.

4. Moving towards a risk based approach and away from mechanical compliance with rules: Business operations support is structured in line with local needs considering the circumstances and dynamics of country programmes. Identifying and managing risks allows for greater flexibility to respond based on needs, embracing cultural and operational change.

1.4. BOS Priority Areas The BOS 2.0 in Ethiopia is built around six pillars reflecting the common service lines of:

Table 1 2: List of Pillars for BOS 2.0

Pillar 1 Common Procurement Services

Pillar 2 Common Finance Services

Pillar 3 Harmonized Approaches to Cash Transfers (HACT)

Pillar 4 Human Resources and Common Premises Services

Pillar 5Business Continuity Management & Common Information and Communications Technology Services

Pillar 6 Host Country Agreement/ Legal

Operational analysis and prioritization has been completed for the four pillars of Common Procurement Services, Human Resource and Common Premises Services (HR), Common Finance Services and HACT.

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A Results Framework and Monitoring and Evaluation (M&E) mechanisms has been prepared covering all pillars.

1.4.1. Pillar 1 - Common Procurement Services

Common Procurement represents the pillar with the highest potential for cost reduction and efficiency gains, and accounts for 60 to 70 percent of the overall delivery of the BOS 2.0. Substantial cost reductions are anticipated through maximizing the UN’s bargaining power and increasing economies of scale. Cooperation in procurement can improve relations with suppliers, and increase value for money through improved planning, bulk discounts and negotiation power; reduction of parallel processes and transaction costs and sharing of purchasing experience, information, and expertise and learning among UN Agencies.

The Common Procurement Working Group (CP WG) will develop a joint approach to Common Procurement Services in order to enhance quality, effectiveness and efficiency in common procurement activities for all UN Agencies in Ethiopia with an emphasis on sustainable procurement as well as leasing vs purchase of assets/goods to reduce the footprint and also to reduce the burden on management budget.

The BOS 1.0 Common Procurement Services achievements include:

• A market assessment facilitated the creation of Long Term Agreements (LTAs) for the provision of print production services.

• A total of 91 active LTAs have been uploaded to the Information Knowledge Management (IKM) platform.

• The Inter-agency technical committee led by UNECA evaluated the existing common travel services and extended the contact for another one year.

• In collaboration with the Addis Ababa Chamber of Commerce and Sectorial Associations (AACCSA), the CP WG and UNECA conducted a one-day seminar and 500 vendors attended training aimed at creating a platform for exchange of ideas between UN Agencies and the business community.

• The Introductory Certificate in Public Procurement, level 2 training was held in conjunction with UNDP and the Chartered Institute of Procurement & Supply (CIPS), as part of the capacity building program for UN procurement staff. During the CIPS 2 training, 38 procurement staff from 17 UN Agencies were trained.

The Common Procurement Priorities for the BOS 2.0 are:

• Establishing additional common LTAs for identified goods and services categories

• Providing joint capacity development training, workshops and seminars to UN procurement staff, suppliers and vendors;

• Analyzing leasing options versus purchase options for asset acquisition to reduce the burden on management budgets

• Developing a regional LTA database and making it accessible to the BOS implementing countries in the Southern and East Africa region establishing the foundation for regional BOS approaches.

• Launch Sustainable Procurement initiatives on selected common key goods and services


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1.4.2. Pillar 2 – Common Finance Services

Common Finance Services are coordinated by the Finance Working Group (FWG) established by the OMT in April 2015. The working group aims to save USD 16 Million through common currency exchange transactions. UN Agencies in Ethiopia will work together to get the most favorable legally available rate for foreign currency. In addition, the FWG will conduct an annual banking survey and forge agreements with banks on behalf of all UN Agencies, with the aim of reducing banking fees and improving the quality of banking service.

Joint Value-Added Tax (VAT) reclaims will be processed through the working group to avoid the loss of revenue as a result of uncollected VAT.

The Common Finance Priorities for the BOS 2.0 are:

• Harmonizing foreign currency exchange dealings with banks

• Harmonizing banking service to reduce banking fees and increase quality of banking services

• Conducting joint VAT reclaim

• Undertaking capacity development for UN finance staff to improve common finance services

1.4.3. Pillar 3 - Harmonized Approach to Cash Transfers

A Harmonized Approach to Cash Transfers (HACT) Framework was launched in April 2005 by UNDP, UNFPA, WFP and UNICEF as a means to establish a harmonized operational structure for transferring cash to both government and

non-government Implementing Partners (IPs). HACT has changed the management of cash transfers from a system of rigid controls to a risk management approach aimed at reducing transaction costs, simplifying and harmonizing rules and procedures, while strengthening the capacity of implementing partners to effectively manage resources.

The HACT framework has been adopted by UNPD, UNFPA and UNICEF in Ethiopia and supports capacity development efforts to communicate expectations and requirements to Implementing Partners (IPs). Finance staff from all UN Agencies will be trained in the HACT guidelines and awareness among IPs will be increased.

The organization of joint HACT micro-assessments and audits for shared IPs of fully implementing HACT framework UN Agencies will be coordinated through the HACT Working Group (WG).

The HACT achievements in the BOS 1.0 include:

• A database of completed Micro Assessment s of IP established in the IKM platform

• Capacity development training conducted for 18 Non-Governmental Organization (NGO) IPs and 49 Government IPs focused on building awareness of HACT principles and enhancing the financial management capacity of IPs. A total of 140 participants in capacity development training including 33 from NGO, 96 from Government and 11 from UN Agencies.

• LTAs with two local audit firms for the HACT Micro Assessment s of UN IPs valid to March 2017.

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The HACT Priorities for the BOS 2.0 are:

• Ensuring the full implementation of the HACT Framework by all UN Agencies that provide funds to IPs

• Conducting Joint HACT Micro Assessments of shared IPs

• Conducting a Macro Assessment within the BOS 2.0 cycle

• Conducting Joint HACT Audit of shared IPs

• Developing Joint Capacity Development training on the HACT for IPs and UN staff

• Preparing a Joint Assurance plan for shared IPs

• Updating the HACT Database of IPs on IKM

• Finalization of the Programme Implementing Manual (PIM)

1.4.4. Pillar 4 – Human Resources and Common Premises Services

Common Human Resources Services are coordinated by the Human Resources and Premises Working Group (HR WG) with a focus on recruitment and training.

The BOS 1.0 Common Human Resources (HR) Services achievements include:

• Conducting the corporate survey field visit to assess the cost of living, general and health conditions in Gambella.

• Establishing the HR Roster for Local Consultants and Support Service Staff.

• Update and adoption of the service contract remuneration scale aligned to national staff salary scales.

• Harmonization of local consultancy rates.

• Development of an accountability framework for staff participating in the OMT and OMT Working Groups, endorsed by the UNCT.

The Human Resources and Common Premises Priorities for the BOS 2.0 are:

• Establishing Joint Advertisement and Recruitment modalities

• Developing a common learning programme, including training in Competency Based Interview (CBI)

• Developing a HR roster of local consultants and support services staff

• Designing a recognition and award framework to reward individual and group performances

• Harmonizing UN agency policies for medical evacuation versus medical recovery in different regions

• Harmonizing internship modalities of UN Agencies

• Harmonizing local consultancy rates of UN Agencies

1.4.5. Pillar 5 – Common Business Continuity Management & Information and Communications Technology Services

Priorities under this pillar are coordinated by the combined Business Continuity Management (BCM) & Information and Communications Technology (ICT) Working Group (WG).


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The BOS 1.0 Business Continuity & Information and Communications Technology achievements include:

• Inter-Agency BCM Policy Framework endorsed by the UNCT as a binding legal document to ensure development of mechanisms for organizational resilience.

• ICT network consolidated through implementation of common ICT infrastructure.

• Two Memoranda of Understanding (MoU) formalized the four alternate recovery sites (UNECA, UNHCR, UNDP Regional Service Centre and FAO) and International Livestock Research Institute (ILRI) as a concentration point (temporary relocation from the hazard) and alternate recovery site. These MoU establish a framework for cooperation and facilitate collaboration between UN Agencies in the event of any crises and will be signed and formalized in the BOS 2.0 cycle.

• A needs assessment conducted in November 2013 informed development and launch of the IKM platform in March 2016.

The Common Business Continuity Management & Information and Communications Technology Priorities for the BOS 2.0 are:

• Developing and operationalizing a joint BCM Framework

• Creating shared ICT infrastructure including shared network, common telephony and internet service

• Utilizing and updating the IKM platform

• Establishing a common IT data center for identified critical services to avoid loss of critical data

1.4.6. Pillar 6 - Host Country Agreement/ Legal

Most UN Agencies working in Ethiopia have a significant field presence and it therefore remains a priority to provide sensitization training for government officials, law enforcement agencies and UN staff on UN privileges and immunities with the aim of preventing the UN’s rights from being infringed by local authorities in the future. Continued implementation of sensitization training as an inter-agency initiative to ensure quality of support to programme delivery, and to facilitate the implementation of DaO is a priority in the BOS 2.0. This will include the harmonization of operational policies and the provision of technical support to prepare supplementary agreements for all UN Agencies and to help negotiate disputes with host country authorities where needed.

The BOS 1.0 Host Country Agreement/ Legal achievements include:

• United Nation Department of Safety and Security (UNDSS) resolving cases with UNECA, UNOCHA and UNHCR.

• Capacity development training provided for local authorities on the UN’s mandate, work and legal status.

• Sensitization documents finalized explaining the role and legal status of the UN in Ethiopia. Under the BOS 2.0 these documents will be translated into major local languages and delivered via sensitization workshops in the regions, to sensitize local authorities to the UN’s role and mandate.

• Sensitization workshops conducted in five regional cities: Jigjiga, Assosa, Semera, Gambella and Hawassa. Senior level staff

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from Supreme Court, High Court and Police Commission and UN staff attended training programmes aimed at providing guidance to the Ethiopian judiciary and law enforcing organs about the privileges and immunities of UN Agencies and the effects of the treaties and Headquarters Agreements ratified by the GoE.

The Host Country Agreement/ Legal Priorities for the BOS 2.0 are:

• Harmonizing operational policies of UN Agencies.

• Providing sensitization workshop on immunities and privileges to UN agency staff

• Providing regular briefings to UN staff on their privileges, immunities and obligations

• Assisting the UNCT in the implementation of host country agreements and the Convention on the Privileges and Immunities of the UN

• Negotiating and obtaining banking services and establishing VAT exemption procedures in conjunction with the Finance Working Group

1.5 Sustainability in Business Operations

As highlighted in the document published by UNDG on “THE ROLE OF BUSINESS OPERATIONS IN A POST 2015 WORLD”, sustainability of business operations has implication in terms of management practices in terms of our ability to leverage capacities and potential across agencies, being able to access these capacities based on programmatic needs. Among others, effective performance management practices by line managers are

an important underpinning of operational excellence and a world class workforce and needs to recognize staff efforts for UN agencies as well as their contribution to interagency efforts. The OMT in Ethiopia has developed in the HR pillar of this BOS 2.0 document a clear accountability framework that takes into account individual and group participation, as well as an award framework to reward individual and group participation. Suitable recruitment practices and a compensation system adequately designed for field-related needs of development workers ensure the UNCT in Ethiopia recruits the best of class professionals to ensure top quality delivery of operational support services. In addition, the UNCT in Ethiopia through the OMT will be looking into embedding sustainability approach in all the other BOS pillar by leading by example with regards to environmental sustainability of the UNCT operations. This will be achieved through series of awareness raising, specific trainings to staff and providers, and partnership building with key stakeholders such as UNOPS, UNEP etc. In order to be environmentally sustainable the UNCT in Ethiopia will strive to reduce its carbon footprint. This means using renewable energy sources, while at the same time reducing waste and promoting recycling.

1.6 Lease Vs Purchase analysis and decisions.

Lease vs buy equipment – By definition, a lease is a long term agreement to rent equipment, land, buildings, or any other asset. In return for most-but not all-of the benefits of ownership, the user (lessee) makes periodic payments to the owner of the asset (lessor). The lease payment covers the original cost of the equipment or other asset and provides the lessor a profit.


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The recent trend of reduction of management resources in the UN as a whole call for innovations and new way of working to properly manage and sustain our management budget. Hence, the OMT through the CP WG will be working together to identify all the areas where in the acquisition of assets, office equipment, IT equipment’s, office furniture’s, vehicles, etc. the lease options could be use.

Types of Leases: There are three major kinds of leases: the financial lease, the operating lease, and the sale and leaseback. Lease or buy decision involves applying capital budgeting principles to determine if leasing as asset is a better option than buying it.

Leasing in a contractual arrangement in which a company (the lessee) obtains an asset from another company (the lessor) against periodic payments of lease rentals. It may typically also

involve an option to transfer the ownership of the asset to the lessee at the end of the lease or allowing the lessee to sell an asset at the end of the lease period and transfer the sales money to the lessor by keeping a certain percentage agreed upfront.

Buying the asset involves disbursing a full amount of money to purchase an asset with UN Institution’s own funds.

In finding out whether leasing is better than buying, we need to find out the periodic cash flows under both the options and discount them using the duty-free cost of the asset to see where does the present value of the cost of leasing stands as compared to the present value of the cost of buying. The alternative with lower present value of cash outflows is then selected.

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Business Operations Analysis Business Operations Analysis aims to assess the performance of existing common services through a Stock take and Needs and Opportunities Analysis, as well as prioritize new services through Cost-Benefit Analysis (CBA).

2.1. Stock TakeThe stock take assesses the performance and identifies the bottlenecks of existing common services in the BOS 1.0 and supports the OMT to determine priorities for the BOS 2.0 and is presented in detail in Annex 1.

Stock take summaries based on available data present performance ranking against the established KPIs for each of the seven BOS 1.0 pillars.

1. Common Procurement

2. Harmonized Approach to Cash Transfer

3. Business Continuity Management

4. Human Resources

5. Information Communications Technology

6. Host Country Agreement/Legal

7. Support to the Coordination of Common Operations

2.1.1. Pillar 1 - Common Procurement Service

KPI 1

Estimated labor cost saving

Baseline = USD 14,416,114Target = USD2,423,640

Not met but in progress

KPI 2

Estimated cost saving

Baseline = USD112,691,616Target = USD9,964,527


KPI 3Number of joint LTAs in place

Baseline = 1(travel)Target = 8


KPI 4

Percentage of UN Staff satisfied with the quality of existing common services

Baseline = 0%Target > = 70%

Data not available

The common LTAs already in place in the area of Common Procurement include:

• The UNECA-led agreements with two local travel agencies (Airlink and Gashem) for travel services that are used by a majority of the UN Agencies

• UNICEF-led printing service

• LTA for driver’s uniform. First it was led by WFP but now it is under a process lead by UNDP to create another long term agreement with the supplier - China UNDP.

• UNICEF-led LTAs were established with two local audit firms for the HACT micro-assessment of the UN’s implementing partners, i.e. Merit Management Consulting firm and A.W. Thomas Limited Partnership. These LTAs will be active until March 2017.

The numbers of joint LTAs created during the BOS 1.0 was 3 (Printing, Drivers’ uniforms, HACT Micro-assessment) which is less than the target of 8. As a result, KPI 1 and 2 - labor

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cost and material cost savings targets were not reached. Thus, the performance ranking for KPI 1, 2 and 3 is target not met but in progress. No qualitative data was available to measure the performance of the KPI 4.

2.1.2. Pillar 2 - Harmonized Approach to Cash Transfers

KPI 1

No. of IPs included in joint assurance and capacity development framework

Baseline= 0Target=250


KPI 2

No. of IPs that received joint capacity development support on HACT modalities, monitoring and financial management

Baseline= 0Target=100


KPI 3 No. of jointly audited IPs

Baseline= 0Target= 250

Not met and no progress

Based on the data obtained, 67 IPs received joint capacity development training on HACT. Hence, the performance ranking against KPI 1 and 2 is target not met but in progress. There were no jointly audited IPs during the BOS 1.0, hence, the performance ranking against KPI 3 is target not met and no progress.

2.1.3. Pillar 3 - Business Continuity Management

KPI 1

Business Continuity Framework for the UN premises in Addis Ababa operationalized

Baseline= NoTarget= Yes


KPI 2

Number of operational business continuity framework in place for the UN premises in the field

Baseline= 0Target=3


Based on the data obtained, an Inter-Agency Business Continuity Management Policy Framework was established to ensure business continuity and organizational resilience, which has been endorsed by the UNCT. Two MoU have been prepared but not yet signed. These MoU are required to operationalize the business continuity framework. Thus, the performance ranking against KPI of the first indicator is target not met but in progress. There is no operational business continuity framework in place in the field. Thus, the performance ranking against KPI 2 is target not met and no progress.

2.1.4. Pillar 4 - Human Resources

KPI 1

Estimated labor cost saving through the use of HR Roster of Local Consultants

Baseline=USD 2,123,200Target= USD 988,800


KPI 2

Technical note on harmonized Rest and Recuperation (R & R) policies and procedures prepared and shared with the International Civil Service Commission (ICSC) for endorsement

Baseline= NoTarget= Yes

Target met

KPI 3Rates for local consultants harmonized

Baseline= NoTarget=Yes


KPI 4Number of field locations assessed for staff issue

Baseline=0Target=3


The HR Roster of Local Consultants and Support Service staff was not created in the BOS 1.0. Thus, the performance ranking against KPI 1 is target not met and no progress. The performance ranking against KPI 2 is target met based on the work of the working group. During the BOS 1.0 harmonization of local consultancy rates was not finalized

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but the activity has commenced by way of hiring a consultant to collect data. Thus, the performance ranking against KPI 3 is target not met but in progress. The staff from the HR Working Group, OMT and UN Resident Coordinator’s Office (RCO) have made a field visit to assess the cost of living, general and health conditions in Gambella in the BOS 1.0 cycle. Thus, the KPI 4 target is not met but there is progress.

2.1.5. Pillar 5 - Information and Communications Technology

KPI 1

The UNCT IKM platform launched and accessible by all UN Agencies

Baseline: NoTarget=Yes

Target met

KPI 2

The ICT Business Case on network consolidation is finalized and endorsed by the UNCT

Baseline=NoTarget= Yes


KPI 3

The percentage of 13 UN Agencies’ network uptime

Baseline= 98%Target >= 99%

Data not available

The Information and Knowledge Management (IKM) system/ platform was launched in March 2016 and is accessible by all UN Agencies. Thus, the performance ranking for KPI 1 is target met. The Information and Communications Technology (ICT) Business Case on network consolidation is finalized but not yet approved by UN Agency HQs. Thus, the performance ranking of KPI 2 is target not met but on progress. No data is available for KPI 3.

2.1.6. Pillar 6 - Host Country Agreement/ Legal

KPI 1

Technical and administration support provided to high level negotiation with government on HCA of UN Agencies

Baseline = NoTarget =Yes

Target met

KPI 2

No of regions that received information materials on the UN’s working methods and legal status (local language)

Baseline = 0Target = 3


KPI 3

Number of federal and regional government agencies participated in the sensitization workshop

Baseline = 0Target = 12 regional & 4 federal agencies


Technical and administration support was provided to the high level negotiation with government on HCA of UN Agencies. Thus, the performance ranking of KPI 1 is target met. No region received information materials on the UN’s working method and legal status using local language. Hence, the performance ranking for KPI 2 is target not met and no progress. Five regional government agencies participated in the sensitization workshop on UN working methods and legal status. However, no Federal Government agencies participated in the sensitization workshop. Hence, the performance ranking of KPI 3 is target not met but in progress.


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2.1.7. Pillar 7 - Support to the Coordination of Common Operations

KPI 1

Number of staffs who participated in a capacity development workshop of operations

Baseline= 0Target = 80 Target met

KPI 2

Number of staffs who received capacity development support on International Public Sector Accounting Principles (IPSAS)

Baseline = 0Target = 40 Target met

KPI 3

Number of the OMT annual reports prepared and shared with the UNCT

Baseline = 0Target = 2 Target met

The OMT has organized capacity development workshops on RBM and on the International Public Sector Accounting Service (IPSAS). In addition, the OMT submitted two reports per year to the UNCT. Thus, the performance rankings of KPI 1, 2 and 3 is target met.

2.2. Needs and Opportunities Analysis

The needs and opportunities analysis identifies the demand for possible new common services. It focuses on ‘what’ the UN Agencies need and ‘when’ they need it. It identifies needs arising directly from programme (UNDAF) and non-programme related demand for common business operations that will reduce cost and enhance quality.

2.2.1. Common Procurement Services

In consultation with the PMT during the BOS awareness retreat, and other subsequent meetings, between the OMT and CP WG

members, and taking into account the various Agencies’ needs and OMT common service demands, the OMT has identified the need to incorporate the following 28 additional categories of goods and services for the creation of inter-agency arrangements (requiring six new LTA per year) in the BOS 2.0.

Table2 1: List of Identified Categories of Goods and Services for Inter-Agency LTA

1. IT Equipment including Computers, Printer and Toners and Technical Support

2. Spare parts including tyres

3. Stationary including printing paper

4. Catering services 5. Electrical equipment

6. Office equipment including furniture

7. Uniform/clothing

8. Hotel and conference facilities

9. Communication and production (video)

10. Translation/interpretation

11. Custom clearance

12. Advertising services

13. Vehicle insurance

14. Vehicle maintenance

15. Postal and courier services including cargo

16. Cleaning services (company)

17. Temporary driving services (company)

18. Security guard services

19. Transportation rental trucks

20. Transportation rental bus

21. Transportation rental car

22. Printing services 23. Warehouse/storage rental

24. Event management

25. Generator and electro mechanical services

26. Maintenance and IT equipment/photocopier

27. Vehicle maintenance

28. Technical consultancies and training services (including: surveys, M&E, design of towns, inventory counting, technical assistance towards HR and finance, inspection services

In 2014, all UN Agencies spent a total of USD 38.8 million in the above listed categories of goods and services see Annex 1. A joint approach will therefore enhance the quality of services received and allow substantive reductions in service and transaction costs for the UN.

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Sustainable Procurement Initiatives

The UN is committed to sustainable development and by extension to sustainable procurement. This is clearly emphasized by the 12th Sustainable Development Goals (SDGs) of Responsible Consumption. Sustainable procurement also impacts on many of the other sustainable development goals. According to the High-Level Committee on Management Procurement Network (2009): “Sustainable Procurement practices integrate requirements, specifications and criteria that are compatible and in favour of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services and ultimately optimizing costs”4. It is also known that since June 2007 the UN is committed to become climate neutral and “go green”. To this effect many UN Agencies have embarked on different sustainable procurement initiative.

As a general Principle, sustainable procurement is consistent with the UN’s general procurement principles around:

• Best value for Money

• Fairness, Integrity and transparency

• Effective international competition

• The best interest of UN

It is imperative that the UN system in Ethiopia launch sustainable procurement initiative on selected common key goods and services. In this regard the OMT Common Procurement Working Group (CP WG) commits itself to identify common key goods & service and

4 High-Level Committee on Management Procurement Network (HLCM-PN) (2009) – Sustainable Procurement Statement, Adopted by the HLCM Procurement Network meeting in Vienna, February 2009.

establish common LTAs that will be shared within the agencies in Ethiopia and the sub region. Such goods and services might include solar systems, stationeries, recycled toners, printing services, photocopying services, clearing services, etc.. In order to be environmentally sustainable the UN system in Ethiopia will strive to reduce its carbon footprint. The CP WG implements the sustainable procurement initiative throughout all procurement process such as Planning, Requirement definition, Sourcing, Evaluation, Review and Award, Logistic and Contract Management. More specifically, the CP WG considers the followings during the sustainable procurement process:

• Think about potential alternatives, reconsider how many items you need

• Define and include sustainability criteria as part of your requirements

• Include sustainability considerations in the market research of vendors

• Evaluate best value for money option through the use of life-cycle costing in financial evaluation

• Include pre-determined sustainability evaluation criteria

• Consider more sustainable packaging and shipping options for delivery

• Monitor supplier performance and encourage small but incremental improvements to environmental and social impacts of suppliers

The CP WG expects to achieve the sustainable procurement implementing the procurement processes with the various methods (Request for Proposal, Rest for Quotations, and Invitation to Bid) through:


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• An early inclusion of sustainable procurement elements at the planning stage to insure transparency, fairness and efficiency

• Inclusion of sustainability requirements/criteria

• Minimize sustainability risk by sourcing responsible suppliers etc.

In order to achieve this mindset shift, and implement sustainability aspects in our procurement related activities, key initiatives and trainings to staff and providers will be implemented to all working groups under the leadership of the OMT. In addition, partnership with key stakeholders such as UNOPS, UNEP and other NGO’s involved in sustainability management will be sought.

Capacity Building

In order to maximize the benefit of these joint procurement activities, there is the need to provide capacity building training to UN procurement staff and suppliers/vendors. Most UN Agencies have provided such capacity building training only to their procurement staff but not to the suppliers/ vendors except one instance when a business seminar was organized by UNECA in collaboration with the Addis Ababa Chamber of Commerce and Sectorial Associations (AACCSA) Thus, the CP WG aims to enhance the capacity of the UN procurement staff and suppliers/vendors by providing different training, workshops or seminars. The working group planned to provide two business seminars, four CIPS trainings, one ethics training and four annual common procurement retreats during the BOS 2.0 cycle.

Regional Common Procurement Management System and Register

The CP WG has established a Common Procurement Management System (CPMS), which currently only includes the data, information and agreements provided by the UN Agencies who are active in the CP WG in Addis Ababa. However, a more systematic approach is needed to map the suppliers, vendors and service providers who are working across the country, particularly at the field level and in the BOS implementing countries in East Africa, namely Kenya, Uganda, Malawi, Tanzania and Rwanda. There is no regional LTA database available to support procurement activities at the regional level, which would benefit UN Agencies in Ethiopia and other BOS implementing countries in the African region. Thus, the development of a Regional LTA database, identification of key regional suppliers and a mapping exercise will help other BOS implementing countries to better piggyback each other’s processes and access a wider range of products and services at a better price and within a reasonable timeframe. This is a key priority area in the BOS 2.0.

Monitoring LTA

The CP WG has collected 91 LTAs created by individual UN Agencies (73 by UNICEF, eight by WFP, six by UNOPS, and four by FAO) and uploaded them to the IKM online database system, making them available to other UN Agencies who may wish to piggy back. The collation on the IKM system/ platform helps to assess the use of LTAs as well as support UN Agencies to use the LTAs effectively and efficiently. There is the need to monitor the utilization of LTAs and renew LTAs before their expiry date; the IKM will provide the necessary

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alerts and the CP WG will take action to ensure all LTAs are monitored and renewed on time. Therefore, the monitoring and management of LTA is a priority in the BOS 2.0.

2.2.2 Human Resources and Common Premises Services

Joint Advertising and Recruitment panels

For Common Human Resources Services one of the key common service needs is the establishment of joint advertisement processes and recruitment panels driven by the demand for recruitment of 200 staff in the BOS 2.0 timeframe. This need aims to avoid duplication of effort, saving UN agencies time and reducing cost, encouraging the sharing of best practice and expertise among the UN Agencies.

Joint Learning Programme

The implementation of a joint learning programme is an identified need. This will increase information sharing about DaO in Ethiopia and better motivate new colleagues to support the BOS process. There is an identified need to provide Competency Based Interview (CBI) training for 500 staff in all UN Agencies in order to maximize staff motivation and performance across programmes and operations. The need for seven additional training programmes has also been identified by the PMT and the OMT, and through the feedback from the annual induction programme for new UN personnel.

Reward Framework

Due to poor attendance at the OMT and OMT Working Groups meetings, there is an identified need to develop a reward framework to recognize and award individuals providing outstanding service to the client,

who bring innovative ideas to the OMT and its Working Groups, and who show outstanding achievement. An initial award framework was endorsed by the UNCT together with an accountability framework in 2015. In the BOS 2.0 the OMT aims to respond to this continued need by reward outstanding staff based on the criteria set by the OMT HR WG.

Common HR Roster

UN Agencies in Ethiopia are required to recruit 130 local consultant and support service staff per year and therefore have the need for a common HR Roster to shorten recruitment and selection procedures, saving time and money, and fostering collaboration instead of competition amongst UN Agencies. UN Agencies require quick access to pre-screened candidates and ‘tried and tested’ consultant profiles. The OMT, therefore, sets the development of an HR Roster of Local Consultant and Support Service Staff platform as a key priority for the BOS 2.0.

Harmonized Consultancy Rates and Internship Modalities

In Ethiopia, different UN Agencies use different consultancy rates. This makes it difficult for some Agencies to attract consultants. There is also variation in the internship modality of UN Agencies in terms of age, education qualification and stipend paid. Thus, the OMT has emphasized the need to harmonize both consultancy rates and internship modalities among UN Agencies in the BOS 2.0.

2.2.3 Common Finance ServicesBanking Services Exercise

In the area of common finance services many UN Agencies and their Implementing Partner (IPs) working under the National


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Implementation Modality of HACT maintain their bank accounts with the Commercial Bank of Ethiopia (CBE) and the National Bank of Ethiopia. The CBE is a government bank and it provides a wide network of branches and has a strong asset and capital base. It is also generally believed that there is implicit government guarantee for the account holders. However, some UN Agencies report that their IPs face frequent delays in funds transfer which results in IPs not being able to carry out activities as planned causing reported delay and low delivery.

Thus, there is the need for UN Agencies to conduct regular banking surveys to help identify the types of banking services available to UN Agencies, the quality of the services, and the fees and rates charged. Based on the survey results, UN Agencies can open negotiations for improved services and sign service agreements with the bankers on a competitive basis. As a result, the OMT has identified signing of an agreement with banks on behalf of other UN Agencies as key priority need for the FWG in the BOS 2.0.

Exchange Rates

The National Bank of Ethiopia (NBE) issued a new directive on February 2014. According to this directive, the foreign exchange rate has been fixed at the minimum rate and banks are required to offer the lowest / buying exchange rates to UN Agencies. Before the issuance of the directive, UN Agencies were able to negotiate the exchange rate with banks and sell foreign currency at the maximum available rate, the selling rate.

The data collected from UN Agencies indicates that the level of loss in 2014 due to the new directives of the NBE was USD 7,846,395.84 per year. This indicates a loss of 2 percent of

the amount of USD converted to Ethiopian Birr each year due to this new directive. Over the BOS 2.0 cycle, the total estimated loss is more than USD 30 Million. If the UN Agencies could negotiate with the GoE through the Ministry of Foreign Affairs (MoFA), we can save at least 50 percent of the loss, which translates into savings of USD 4 Million per year. Over the BOS 2.0 cycle, it is anticipated that it will be possible to achieve USD16 Million in savings. The harmonization of foreign exchange rates is therefore an identified opportunity for the Finance Working Group in the BOS 2.0.

VAT Reclaim

UN Agencies in Ethiopia face challenges in timely Value-Added Tax (VAT) reclaim because suppliers/vendors may not file documents properly. To avoid loss of revenue from uncollected VAT, the OMT highlights the need to organize and reclaim VAT jointly in the BOS 2.0.

Joint Micro Assessments

In Ethiopia, UNDP, UNICEF and UNFPA are fully implementing the HACT framework. HACT reduces the burden on implementing partners and Agencies and utilizes a risk based approach, as opposed to a control based approach. HACT micro-assessments determine the risks related to cash transfers to IPs and are conducted once every programme cycle or whenever a significant change is noticed in the IP’s organizational management. In Ethiopia, there are two UNICEF led LTAs with two local audit firms for undertaking HACT micro-assessments of UN implementing partners. Currently, there are 24 shared IPs among UN Agencies. For shared IPs, there is the need for UN Agencies to identify a lead agency for the purpose of managing the micro-assessment. The lead agency should

BOS 2.0 2016-2020

30

be the one that is responsible for the funding being provided to the IP and the one that has sufficient internal capacity. The OMT has identified the need to strengthen the activity of conducting joint micro-assessment of shared IPs through a lead agency approach, with the establishment of this approach needing priority in the BOS 2.0.

Joint Assurance Activities

To ensure funds transferred to IPs are used for appropriate purposes and project targets and expected results are achieved the HACT framework requires UN Agencies to conduct assurance activities based on the risk level/ratings determined by the micro-assessment report. The specific combination, frequency and scale of assurance activities for each IP will be determined by the risk rating of the micro-assessment report of the IP. For each Implementing Partner, the result of the assurance activity may lead to changes in the procedure and modality for disbursing cash transfer, and the type and frequency of future assurance activities

There are three mechanisms through which assurance activities need to be carried out, namely: 1) On-site reviews; 2) HACT audits and special audits (if needed); and 3) Programmatic assurance.

Joint Audit

The HACT audit will assess the existence and functioning of an IP’s internal control for the receipt, recording and disbursement of cash transfer and the fairness of a sample of expenditures reported in the Fund Authorization and Certification of Expenditure (FACE) forms for the period under review. In Ethiopia, UN Agencies individually contract different audit firms to conduct audit at high cost. For shared IPs, if this activity is done at

UN Agency level, one IP may be assessed by more than one UN Agency. This will create duplication of efforts, time and waste of money. This will also create a burden on the IP. Thus, there is the need for Agencies to identify a lead UN Agency to conduct a joint audit. The lead agency being responsible for ensuring that the joint audit is executed as planned on behalf of all UN Agencies. The UNCT/OMT identified conducting joint HACT audit of shared IPs as priority area for need for the HACT working group in the BOS 2.0.

Joint Assurance Plan

The purpose of assurance activities is to determine whether the funds transferred to IPs were used for their intended purpose and in accordance with the work plan. Assurance planning activities should be completed at the beginning of the programme cycle. Assurance activities help risk management and mitigation. The coverage, type and frequency of assurance activities is guided by the overall risk rating of an IP. For example an IP assessed as high risk is subject to more frequent assurance activities such as in-depth programmatic monitoring and audits. For shared IPs, the lead agency ensures that other agencies are involved in determining the scope of assurance activities to review the results, corrective actions, capacity development requirements and/or changes to planned assurance activities. The establishment of joint assurance plan for shared IPs is identified as a key priority area for the BOS 2.0.

Joint HACT Capacity Development

The objective of HACT related capacity development is to identify IP strengths and weakness in financial management. After identifying the weakness of IPs UN Agencies have the opportunity to organize different


31

capacity development programmes. For shared IPs there is the need to conduct the capacity development jointly. Development and implementation of joint capacity development programme for IPs and UN staffs is therefore a key priority area for the BOS 2.0.

Macro Assessment

The macro-assessment is a desk review of existing assessments of the National Public and Financial Management (NPFM) system of the country under which the UN provides cash transfers. This assessment is undertaken once per programme cycle. During the BOS 2.0 cycle the UNCT in collaboration with the Ministry of Finance and Economic Commission (MoFEC) will respond to the need to conduct a macro-assessment.

HACT Database

In Ethiopia, the UNCT launched an IKM Platform on March 2016 to facilitate information sharing amongst the UNCT, OMT and its Working Groups. The IKM contains a HACT IP database available to all UN Agencies. This provides information on which IP is funded by which UN Agency, the risk rating and other important information about IPs. Utilizing and regularly updating the HACT database on the IKM is therefore an identified need and a key priority for the BOS 2.0.

2.2.4 Common Business Continuity Management & Information and Communications Technology Services

The Business Continuity Management (BCM) & Information Communication Technology (ICT) Working Group identified key areas of need focused on opportunities to enhance the resilience of the entire UNCT to cope with

crises situations and continue working and managing critical processes in times of crisis or emergency.

Common Data Center

The UNCT and OMT reviewed UN ICT in Ethiopia in February 2012 through development of a business case for ICT network consolidation. One of the purposes of the Business case was to create a common ITC network in Ethiopia to link all UN Agencies together and facilitate a high speed internet service and common backup data center. Creating a common network improved quality of service, brought common/shared infrastructure for UN Agencies and ensured back up for business continuity plans. In the business case, one of the recommendations was to develop a ‘common data center’ that will reduce the cost of data backups which can improve the ICT BC and Disaster Response Preparedness (DRP) of UN Ethiopia. Full implementation of a common/shared ICT infrastructure is a priority for the BOS 2.0.

Business Continuity Plans and MoU

UN Women, UNDP, UNECA, UNOAU, WFP and ILO are the only UN agencies to have individual Business Continuity Plans. The BCM is crucial to ensure the enterprise’s resilience and viability following disruptive events. BCM ensures business resilience before, during and after a disruption. A Business continuity framework for Addis Ababa and inter-agency Business Contunity and an Organizational Resilience Management Policy were approved by the UNCT in 2014. To support the implementation of the framework, BCM capacity development training was conducted in February and October 2014. Four UN alternate recovery sites have been identified and two MoU are prepared but not yet signed to establish a framework of cooperation and facilitate

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32

collaboration between UN Agencies to make use of the premises of alternate recovery sites and concentration points. Signinng of the two MoUs, finalizing and implementing the joint BCM framework and establishing Business Continuity Plan (BCP) locations for each participating Agency for use by UN essential and critical staff during any emergency is a priority need for the BOS 2.0.

Full Utilization of the IKM

The UNCT/OMT has finalized the preparation of the IKM platform and launched in March 2016.This IKM will help to improve knowledge and information management at the UNCT, OMT and OMT Working Group level. It is also used as a monitoring and evaluation tool to improve the data quality in procurement and to assess the use of LTAs. A HACT IPs database has also been incorporated into the IKM platform. Thus, there is a need to ensure full utilization and further developing of the IKM in the BOS 2.0.

2.2.5. Host Country Agreement/ Legal Service

Sensitization Training on UN Privileges and Immunities

Most UN system agencies working in Ethiopia have a significant field presence, there is a need to provide sensitization training for government officials, law enforcement agencies and the UN staff on the UN’s privileges and immunities. Sensitization training as an inter-agency initiative ensures quality of support to programme delivery, and facilitates the implementation of DaO. In addition, harmonizes operational policies effectively, provide technical support to prepare supplemental agreements for all the UN system agencies and supports the UNCT to negotiate and resolve any disputes with host country authorities. This need is identified as key priority areas for the BOS 2.0.

2.2.6. Needs and Opportunities Analysis Summary

Needs and Opportunities Analysis

Common Service Lines/Pillars

Common services/Outputs Needs statement (the ‘what’ and ‘when’) programmatic and non-programmatic needs

Key Performance Indicator (KPI)Cost avoidedQuality of service

Common Procurement Services

Joint LTAs (28)

UN Agencies in Ethiopia have established 28 inter-Agency LTAs for identified categories of goods and services

During the BOS 2.0 consultations the Working Group identified 28 categories of goods and services for the creation of joint LTAs. The aim of establishing these joint LTAs is to reduce the internal transaction cost and reduce unit price through leveraging economies of scale. In addition, those new LTAs will contribute to efficient programme delivery at country level.

Material cost saving with a target of 7% discount from additional joint LTA

Transaction cost savings from use of additional joint LTAs.

Satisfaction (%) based on annual satisfaction survey on the service provided by suppliers

CIPS training for UN Procurement Staff, Suppliers/Vendors

The capacity of UN procurement staff and suppliers/vendors is strengthened to improve procurement process

In order to maximize the benefit obtained from utilizing joint procurement activities there is the need to provide capacity building training, workshops and seminars for UN procurement staff and suppliers/vendors. As a result, in the BOS 2.0, the CP WG plan to enhance the capacity of the UN procurement staff through the CIPS training programmes and to suppliers/vendors by providing different training, workshops or seminars

No. of joint procurement training, workshops or seminars conducted.

Satisfaction (%) based on annual satisfaction survey on the training, workshops or seminars conducted.

Regional LTA Database

A regional LTA database is developed and accessible to the BOS implementing countries in Southern and East Africa (Kenya, Uganda, Ethiopia, Malawi, Tanzania and Rwanda)

There is no LTA database available to support procurement activities at the regional level which would not only benefit UN Agencies in Ethiopia but also other BOS implementing countries in the African region. Thus, the UNCT determines the needs to create a regional LTA database and make accessible in the BOS 2.0.

A regional LTA database is establishedNo. of countries in Southern and East Africa will access to the regional LTA database

No. of regional LTAs accessible on the regional LTA database

Table 2 2: Needs and Opportunities and Key Performance Indicator (KPI)


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Common Finance Services

Common Bank Service Level Agreement

UN Agencies in Ethiopia establish common banking service level agreement with banks for cost reduction and enhanced quality service

UN Agencies are required to conduct regular banking survey. Such surveys help to identify the types of banking services available to UN Agencies, the quality of the services, and the fees and rates charged. Based on the survey results, UN Agencies will be able to identify the types and levels of service provided and in turn negotiate the banking service fee. Thus, the OMT decided to assign a lead agency which negotiates and signs an agreement with a bank on behalf of other UN agencies to improve services and to ensure a competitive bank service fee as a priority for the BOS 2.0.

Estimated cost saving from use of common banking service

% of UN Agencies surveyed who are satisfied with the quality of the common banking service

Host Country Agreement - Harmonized Foreign Exchange Rates

UN Agencies, funds, programmes and specialized agencies in Ethiopia have harmonized foreign exchange rate dealings to obtain the most suitable rate

Due to the new directives of the National Bank of Ethiopia, it is estimated that UN System Agencies in Ethiopia will lose more than USD 7.8 million each year. In order to avoid this loss and obtain the most favorable legally available foreign exchange rate, the OMT has identified the need in the BOS 2.0 for each UN Agency to sign a host country agreement with the Ethiopian Government and obtain the most favorable foreign exchange rate.

Estimated cost saving by harmonizing foreign exchange rate dealing

No. of UN Agencies participated in harmonizing foreign exchange rate dealings

Common VAT Reclaim

UN system Agencies have conducted a common VAT reclaim and reduced the loss of fund from uncollected VAT

In the UN System, it is observed that there is loss of revenue from uncollected VAT from the tax authority. In order to avoid such loss of revenue from uncollected VAT, the OMT identifies the need to organize and reclaim VAT jointly for all UN Agencies in the BOS 2.0.

Common VAT reclaim of UN Agencies on an Annual basis conducted

No. of UN Agencies participating in the common VAT reclaim

HACT

Joint Micro Assessment s

UN Agencies have conducted joint micro-assessment for shared IPs

For shared IPs, the OMT has identified the need for UN Agencies to identify a lead agency for the purposes of managing the joint Micro Assessment in the BOS 2.0. The lead agency to be identified based on the proportion of funding being provided to the IP and the one that has sufficient internal capacity.

Cost saving by conducting joint micro-assessment

No. of shared IPs assessed by joint micro-assessment

Joint HACT Audit

UN Agencies have conducted joint HACT audit for shared IPs

Currently, there are 24 shared IPs. For the UN to reduce the auditing burden on IPs and avoid duplication of efforts, the OMT has identified the need to assign a lead agency and conduct joint HACT audits in the BOS 2.0.

Transaction cost saving by conducting joint HACT audit

No. of shared IPs covered through joint HACT audit

HACT Capacity Building and Spot Check

The capacities of UN staff and IPs on HACT and Spot check performance is enhanced

Capacity development covers identification of capacity gaps. After identifying the weakness of IP’s, UN Agencies have identified the need to organize capacity development training to their staff and IPs. For shared IPs and UN staff, the OMT has identified the need to develop and implement a joint capacity development training on HACT and spot check in the BOS 2.0

Cost saving by conducting joint capacity development training

No. of IPs covered by joint capacity development training on HACT

No. of joint capacity development training conducted on HACT and spot check performance to UN staff and IPs

Joint Assurance Plan

A joint assurance plan is developed for shared IPs

For the HACT framework to provide appropriate levels of assurance to UN management, the OMT has identified the need to develop comprehensive joint assurance plans for shared IPs which considers timely execution of assurance activities in the BOS2.0. There are three mechanisms through which assurance activities will be carried out: On-site reviews (Spot check), HACT audits and Special audits (if needed) and Programmatic assurance.

A joint assurance plan is developed

No. of joint spot checks conducted

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Human Resource and Common Premises Services

Joint Advertising and Joint Recruitment of UN staff

Joint advertisement and joint recruitment staff modality is operationalized among UN Agencies in Ethiopia

Establishing a joint recruitment panel would help to avoid the duplication of effort, save time and reduce cost. It will support the sharing of best practices and expertise among UN Agencies. Hence, establishing the joint advertisement and recruitment modality among UN Agencies is a key priority area in the BOS 2.0.

Transaction cost saving by using joint advertisement and joint recruitment modality

No. of staff recruited by joint recruitment modality

Common Learning Programme

A common effective learning programme is established and operationalized among UN Agencies in Ethiopia

A joint learning programme among UN Agencies will maximize staff motivation and performance across programmes and operations. Besides, it will save time and reduce cost. The HR WG plan to provide CBI and additional training on an annual basis according to needs identified by the PMT and the OMT including induction programme to new UN personnel in the BOS 2.0.

Estimated cost saving due to joint learning programme

No. of training conducted through joint learning programmes

No. of UN HR Staff trained in professional certificate on HR

Business Operations Rewards and Recognition Framework

A reward framework is established to give recognition for individuals showing outstanding achievement in the OMT and OMT WG’s work

To ensure full participation of staff in the OMT and OMT Working Group meetings, the OMT has identified the need to develop a framework to reward exceptional individual and team efforts, behavior and accomplishments in relation to common business operations. The award categories may include providing outstanding service to clients, bringing innovative ideas to the OMT and its Working Groups, and shows outstanding achievement in the OMT or OMT WG’s work. The accountability framework was endorsed by the UNCT in the BOS 1.0 and the need to establish a reward framework to give recognition to staff is highlighted as a need for the BOS 2.0.

A reward and recognition framework is established

No. of individuals awarded using the reward and recognition framework

HR Roster for Local Consultants and Support Service Staff

HR Roster of Local Consultant and Support Service Staff is developed and accessible to all UN Agencies in Ethiopia

The objective of a HR Roster is to provide UN Agencies with quick access to pre-screened candidates and ‘tried and tested’ consultant profiles. This would shorten recruitment costs, accelerate appointments for short‐term assignments and provide cost effective and timely HR support resulting in increased programme efficiency. This will also enable all UN System Agencies to identify candidates from the Roster. Thus, the need for a HR Roster of local consultant and support service staff to UN Agencies is a priority area for the BOS 2.0.

` Transaction cost saving from use of HR Roster of Consultants and support service staff

No. of local consultants and support service staff recruited from the HR Roster of consultants

Harmonized local Consultancy Rates and Internship Modalities

The UN Agencies, Funds, Programmes and Specialized Agencies harmonize local consultancy rate and internship modality among themselves

To avoid variations in consultancy rates and internship modalities among UN System Agencies, the OMT identifies the need to harmonize consultancy rates and internship modalities in the BOS 2.0.

Local consultancy rate harmonized

Internship modality harmonized


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2.3. Cost-Benefit Analysis The Cost-Benefit Analysis (CBA) focusses on the new common services identified through the needs and opportunities analysis and seeks to determine the investment needed in time and financial resources, calculating the projected benefits in terms of avoided cost or enhanced quality of operations. The CBA compares the cost and quality of a function or service undertaken by a single agency with the cost and quality of providing a

service jointly. The overall analysis helps the OMT to decide if the identified common business operations have a cost benefit (and any quality enhancement value), and therefore will be prioritized for adoption as new common services.

The OMT and BOS Committee conducted the CBA across four common service lines where it was felt cost benefits could easily be quantified: Common Procurement; Common Finance, HACT; Human Resources and Common Premises. There has been

Common BCM & ICT Services

Common IT Data Center

A common IT data center for identified critical services is established to avoid loss of critical data and ensure continuity of important activities

In order to avoid loss of data and ensure continuity of various activities, the UNCT has identified the need for and agreed to the development of a “Common data center” that will reduce the cost of data backups which can improve the ICT Business Continuity (BC) and Disaster Response Preparedness (DRP) of UN Ethiopia in the BOS 2.0.

A common IT data center is established

No. of Agencies that participated in the common IT data center

Joint Business Continuity Management Framework

A joint/harmonized Business Continuity Management Framework is developed and operationalized both in Addis Ababa and field offices

Only UN Women, UNDP, UNECA, UNOAU, WFP and ILO have individual Business Continuity Plans. A common Business Continuity Management framework is not finalized and operationalized in UN premises both in Addis and field offices. However, inter-Agency BCP policy was approved by UNCT in 2014. Thus, the OMT has identified the need to finalize and operationalize the joint Business Continuity Management Framework both at UN premises in Addis and Field Offices. The OMT has also identified the need to establish BCP locations for each participating Agency to be used by UN critical staff during any emergency, to be included in the BOS 2.0.

Joint/harmonized BCM framework is developed and operationalized

No. of operational business continuity framework in place for UN premises in field

No. of workshops or training conducted to enhance capacity of UN staff in the areas of BCM

Common ICT Infrastructure

A common/shared ICT infrastructure is developed and operationalized for UN Agencies including shared network, common telephony and internet services

In order to improve quality of service, facilitate a high speed internet service and a common backup data center including back up for business continuity planning, the OMT sees the need for the creation of common ICT infrastructure to be included in the BOS 2.0.

UN Agencies pay a huge amount of money for telephone calls. UNCT has therefore decided to provide the service through a common telephony service to reduce telephony costs and associated operational cost through upgraded infrastructure for all UN Agencies and obtain a better service through implementation of these priorities in the BOS 2.0.

UN Agencies are using individual ISP (local &VSAT) contract for internet connectivity. This is not cost effective as different UN Agencies are paying for the same service multiple times. Thus, the UNCT has identified the need to have a shared internet connection for all UN Agencies to reduce internet connectivity cost and improve bandwidth amount in the BOS 2.0.

Established a common telephony service among UN Agencies

Established a common internet service among UN Agencies

Percentage cost reduction in telephony and internet connectivity

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no CBA conducted within the common service lines of BCM & ICT, nor Host Country Agreement / Legal. The OMT and BOS Committee focus on quality improvement, efficiency and effectiveness gains in BCM & ICT and Host Country Agreement/Legal rather than the cost avoidance.

Costs. The Cost-Benefit Analysis includes Direct Cost

Direct costs are costs that can be traced directly to the delivery of a service or project and are broken down into two types: monetary and labor (which is converted into a $ value). Direct costs can be onetime and/or recurring monetary or labor costs. The CBA uses one total number for direct cost which is the sum of direct monetary and direct labor costs.

Direct cost monetary - refers to the direct monetary cost of establishing the service.

Direct cost labor - refers to the time spent by one or more staff members to develop and implement the common service converted into $ value.

Benefits. The CBA includes two benefit elements: Direct Benefit Monetary and Direct Benefit Labor

Direct Benefit Monetary refers to cost savings, e.g. a reduction in the cost of a process. This may be savings resulting

from a reduction in prices (in the case of procurement) as a result of bulk buying.

Direct Benefit Labor refers to a reduction in time, e.g. the time required to execute a process. Labor benefits are realized when duplicate activities otherwise executed by each UN Agency individually are eliminated due to joint approaches, freeing up staff time for other purposes. This labor benefit (or staff time saving) is calculated as a dollar value.

The CBA uses one total number for determining the direct benefit which is the sum of direct monetary and direct labor benefit. Direct benefit = direct monetary ($) + direct labor benefit (staff time).

2.3.1. Coordination costs of the OMT

The calculation below assumes that OMT members will attend 10 meetings per year and will spend 2.5 hours per meeting, with the Chair and Co-chair spending an additional 15 hours per year for coordinating the OMT. The below table calculates that the OMT members will spend 520 hours per year representing an associated labor cost of USD 52,622.53 per year to coordinate all six OMT Working Groups. Thus, the coordination costs of the OMT per Working Group is USD 11,401.55 per year.


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2.3.2. Coordination Costs of the Common Services Coordinator (RCO)

The below table shows the total coordination cost of maintaining a Common Services Coordinator in the RCO who coordinates the OMT and the six OMT Working Groups. The total cost of the Common Service Coordinator is USD 77,139.16 per year or a cost of USD 11,019.88 per year per working group.

The total cost of the OMT undertaking its coordination function and the full time Common Service Coordinator function in the RCO is USD 145,548 per year. The OMT’s coordination costs and the Common Service Coordinator’s costs are apportioned to the individual working group coordination costs as outlined in the following sections.

Working Group Grade Level Time Spent (in hrs)

Pro-Forma cost (per hour) (USD) Total (USD)

OMT Member P4 25 116.10 2,902.40

OMT Member P4 25 116.10 2,902.40

OMT Member P3 25 97.53 2,438.13

OMT Member P5 25 133.91 3,347.76

OMT Member G6 25 13.41 335.23

OMT Co Chair P5 40 133.91 5,356.42

OMT Member P4 25 116.10 2,902.40

OMT Member P4 25 116.10 2,902.40

OMT Member P3 25 97.53 2,438.13

OMT Member P4 25 116.10 2,902.40

OMT Member P5 25 133.91 3,347.76

OMT Chair P4 40 116.10 4,643.84

OMT Member NOB 25 15.81 395.24

OMT Member G6 25 13.41 335.23

OMT Members P3 25 97.53 2,438.13

OMT Co-Chair P3 40 97.53 3,901.01

OMT Member P5 25 133.91 3,347.76

OMT Member P3 25 97.53 2,438.13

OMT Member P5 25 133.91 3,347.76

Sub total 520 52,622.53

General Operating Expense (GOE) (30% of total cost) 15,786.76

Total OMT Coordination Cost for All WG 68,409.29

Number of OMT Working Groups 6

Cost Per Work Group 11,401.55

Table2 3: Coordination Cost of the OMT Members in managing different OMT Working Groups

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2.3.3. Common Procurement Services

One of the common service identified for the BOS 2.0 is the creation of additional joint LTAs for identified goods and service. Joint LTAs have two benefits, 1) bargaining power (bulk purchase) of the UN resulting in price reduction, and 2) staff labour saving due to reduced individual development and administration of LTA. To calculate the staff labour savings we use Activity Based Costing (ABC) to compare the cost of procurement process with and without joint LTA.

ABC involves the tracing of resource consumption and costing final outputs5. In the case of Ethiopia BOS 2.0 ABC is done through the use of Business Process Mapping and Simplified Transaction Cost Analysis instruments.

5 Ref: Chartered Institute of Management Accountants (CIMA)

Anticipated labor costs -time investment focusses on the time spent on the design, implementation and management of the common service, converted into a dollar value using the wage scales of staff members involved in each activity in the process.

Anticipated labor benefits - time reductions/gains focus on the savings realized as a result of a reduction in the time required to execute a process. This reduction materializes due to the elimination of duplication of functions and activities of a process that are otherwise is executed by each agency individually. The new business solution replaces (parts of ) individual

agency processes thus freeing up staff time for other purposes.

Based on calculated anticipated labor cost and benefits, we compare the situation without LTA and the situation with LTA in

order to come up with the projected savings.

The standard procurement process without LTA will take 53 hours costing USD 1,515. The same process with LTA will take only 7.6 hours costing USD 230. This represents a significant saving in labour costs of 45.4 hours and a reduction in transaction costs of USD 1,285 as outlined below:

TYPE ITEM GRADE

OMT and 6 OMT Working Groups

STAFF COST (USD)

COST APPORTIONMENT

(USD)

Common Service Coordination cost

Dedicated Staff for Common Service Coordination

P1 7* 77,139.16 11,019.88

Total Coordination Cost per Working Group 11,019.88

Table 2 4: Total Cost of the Common Service Coordination of the 6 OMT Working Groups

* includes OMT and 6 OMT Working Groups and OMT


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STANDARD PROCUREMENT PROCESS WITHOUT LTA STANDARD PROCURMENT PROCESS WITH LTA

Process StepStaff

Grade Level

Time Required

(in hrs)

Pro-Forma Cost (per hour) in

USD

Total (USD) Process Step

Staff Grade Level

Time Required

(in hrs)

Pro-Forma Cost (per hour) in

USD

Total (USD)

Prepare specifications/requisition G5 1 11.56 11.56 Prepare specifications/

requisition G5 1 11.56 11.56

Review & approve specifications/requisition NOC 0.5 18.34 9.17 Review & approve

specifications/requisition NOC 0.5 18.34 9.17

Prepare RFQ/RFP/ITB G7 2.5 15.42 38.56 Prepare RFQ/RFP/ITB G7 2 15.42 30.85

Prepare RFQ/RFP/ITB NOB 1.25 15.81 19.76 Prepare RFQ/RFP/ITB NOB 0 15.81 0.00

Prepare RFQ/RFP/ITB P4 0.5 116.10 58.05 Prepare RFQ/RFP/ITB P4 0 116.10 0.00

Publish Advertisement G6 0.5 13.41 6.70 Publish Advertisement G6 0.125 13.41 1.68

Receive and sort proposal G4 2.5 9.25 23.12 Receive and sort proposal G4 1 9.25 9.25

Open & Sign proposals G6 1 13.41 13.41 Open & Sign proposals G6 1 13.41 13.41

Open & Sign proposals NOC 1 18.34 18.34 Open & Sign proposals NOC 0 18.34 0.00



Technical & Financial evaluation G7 3 15.42 46.27 Technical & Financial

evaluation G7 0 15.42 0.00

Technical & Financial evaluation NOB 3 15.81 47.43 Technical & Financial

evaluation NOB 0 15.81 0.00

Technical & Financial evaluation NOC 3 18.34 55.02 Technical & Financial

evaluation NOC 0 18.34 0.00





Technical & Financial evaluation NOC 3 18.34 55.02 Technical & Financial

evaluation NOC 0 18.34 0.00



Ref check NOB 3.25 15.81 51.38 Ref check NOB 0 15.81 0.00

Site visits G7 2 15.42 30.85 Site visits G7 0 15.42 0.00

Site visits NOB 2 15.81 31.62 Site visits NOB 0 15.81 0.00

Review by Contract committee (CAP) NOB 2 15.81 31.62 Review by Contract

committee (CAP) NOB 0 15.81 0.00

Review by Contract committee (CAP) P4 2 116.10 232.19 Review by Contract

committee (CAP) P4 0 116.10 0.00

Review by Contract committee (CAP) NOC 2 18.34 36.68 Review by Contract

committee (CAP) NOC 0 18.34 0.00

Review by Contract committee (CAP) NOC 2 18.34 36.68 Review by Contract

committee (CAP) NOC 0 18.34 0.00

Review by Contract committee (CAP) NOB 2 15.81 31.62 Review by Contract

committee (CAP) NOB 0 15.81 0.00

Endorsement by OM or Head Agency D1/P6 0.5 153.81 76.90 Endorsement by OM or Head

Agency D1/P6 0.5 153.81 76.90

Create PO G6 0.5 13.41 6.70 Create PO G6 0.5 13.41 6.70

Award contract/Prepare PO G6 0.5 13.41 6.70 Award contract/Prepare PO G6 0.5 13.41 6.70

Delivery confirmation G6 0.5 13.41 6.70 Delivery confirmation G6 0.5 13.41 6.70

SUBTOTAL STAFF TIME/COST PER BOS 1.0 1,139.79 SUBTOTAL STAFF TIME/COST PER BOS 1.0 172.93

ADJUSTMENT FACTOR FOR PROFORMA COST INCREASE FROM BOS 1 TO BOS 2.0 2% 25.30 ADJUSTMENT FACTOR FOR PROFORMA

COST INCREASE FROM BOS 1 TO BOS 2.0 2% 3.84

ADJUSTED SUBTOTAL STAFF TIME/COST 1,165.09 ADJUSTED SUBTOTAL STAFF TIME/COST 176.76

GOE (30% OF TOTAL COST)6 349.53 GOE (30% OF TOTAL COST) 53.03

Total 53 1,515 Total 7.6 230

STANDARD UNIT TRANSACTION COST WITHOUT LTA(A) 1,515 TIME REQUIRED IN A PROCESS WITHOUT LTA (in hours) 53.0

STANDARD UNIT TRANSACTION COST WITH LTA(B) 230 TIME REQUIRED IN A PROCESS WITH LTA (in hours) 7.6

SAVINGS ON TRANSACTION COST IF LTA IS IMPLEMENTED(A-B) 1,285 SAVINGS ON TIME (in hours) 45.4

PERCENTAGE SAVING ON TRANSACTION COST 84.83% PERCENTAGE SAVING ON TIME 85.61%

6 In order to reflect all costs involved in running a specific process the calculation includes the same approach applied to the Universal Price List whereby 30% to General Operating Expense (GOE) is added.

Table 2 5: Standard Procurement Process with and without LTA

BOS 2.0 2016-2020

40

The direct monetary costs of developing a common LTA are primarily advertising costs, which are a onetime investment cost as outlined below for the BOS 2.0. The advertising cost to create an LTA is USD 1,500. Since the OMT will create 28 additional LTAs during the BOS 2.0 the total advertising cost (one time monetary cost) will be USD 42,000.

Table 2 6: One-Time Monetary Cost (Advertisement Cost)

COMMON SERVICES ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL (USD)

IT Equipment including Computers, Printer and Toners and Technical Support Advertisement Cost 1,500 1,500

Spare parts including Tires Advertisement Cost 1,500 1,500

Stationery including Printing Paper Advertisement Cost 1,500 1,500

Uniform / clothing Advertisement Cost 1,500 1,500

Electrical equipment Advertisement Cost 1,500 1,500

Office Equipment including Furniture Advertisement Cost 1,500 1,500

Catering service Advertisement Cost 1,500 1,500

Hotel and Conference Facilities Advertisement Cost 1,500 1,500

Communication and production (video) Advertisement Cost 1,500 1,500

Translations/ Interpretation Advertisement Cost 1,500 1,500

Custom Clearance (Company) Advertisement Cost 1,500 1,500

Advertising Services Advertisement Cost 1,500 1,500

Generator & Electro Mechanical Services Advertisement Cost 1,500 1,500

Maintenance (IT Equipment/ photocopier) Advertisement Cost 1,500 1,500

Vehicle Maintenance Advertisement Cost 1,500 1,500

Vehicle Insurance Advertisement Cost 1,500 1,500

Postal and Currier Services including Cargo Advertisement Cost 1,500 1,500

Cleaning services (Company) Advertisement Cost 1,500 1,500

Temporary Driving Services (Company) Advertisement Cost 1,500 1,500

Messenger Services (Company) Advertisement Cost 1,500 1,500

Security Guard Services Advertisement Cost 1,500 1,500

Transportation Rental Trucks Advertisement Cost 1,500 1,500

Transportation Rental Bus Advertisement Cost 1,500 1,500

Transportation Rental Car Advertisement Cost 1,500 1,500

Printing Services Advertisement Cost 1,500 1,500

Warehouse/ Storage Rental Advertisement Cost 1,500 1,500

Event Management Advertisement Cost 1,500 1,500

Technical Consultancies and Training Services(includes: surveys, Micro-assessment, M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )

Advertisement Cost 1.500 1,500

Total One Time Cost 42,000

Direct labor costs are calculated using ABC method. The calculations below show the non-monetary costs associated with the development and renewal of LTA. The calculations indicate that it will take 82.5 hours with a cost of USD 3,845.50 to develop an LTA. The total cost to develop 28 additional common LTAs within the BOS 2.0 will therefore be USD 107,674.


41

Table 2 7: One-Time Labor Cost (LTA Development Cost)

Process step Grade level of staff involved Time required (in hrs) Staff Pro Forma Cost Total (USD)

Draft ToR’s NOC 3 18.34 55.02

Draft ToR’s P3 2 97.53 195.05

Draft ToR’s P2 2 86.35 172.71

Draft ToR’s G6 1 13.41 13.41

Draft ToR’s G6 1 13.41 13.41

Draft ToR’s G6 1 13.41 13.41

Draft ToR’s G7 1 15.42 15.42

Draft ToR’s G7 1 15.42 15.42

Review & Finalize ToR’s P4 1 116.10 116.10

Prepare Solicitation doc P3 1 97.53 97.53

Prepare Solicitation doc G7 1 15.42 15.42

Publish Advertisement G7 1 15.42 15.42

Receive and sort proposal G4 2 9.25 18.49

Open & Sign proposals NOC 2 18.34 36.68

Open & Sign proposals P3 2 97.53 195.05

Open & Sign proposals P2 2 86.35 172.71

Open & Sign proposals G6 2 13.41 26.82





Technical evaluation NOC 2 18.34 36.68

Technical evaluation P3 2 97.53 195.05

Technical evaluation P2 2 86.35 172.71

Technical evaluation G6 2 13.41 26.82





Financial evaluation NOC 2 18.34 36.68

Financial evaluation P3 2 97.53 195.05

Financial evaluation P2 2 86.35 172.71

Financial evaluation G6 2 13.41 26.82





Ref check NOC 2 18.34 36.68

Site visits G7 2 15.42 30.85

Site visits NOC 2 18.34 36.68

Review by Contract committee (CAP) NOC 2 18.34 36.68

Review by Contract committee (CAP) P4 2 116.10 232.19

Review by Contract committee (CAP) NOD 2 21.28 42.55

Review by Contract committee (CAP) NOC 2 18.34 36.68

Review by Contract committee (CAP) NOC 0.5 18.34 9.17

Endorsement by HoA. D1/P6 0.5 153.81 76.90

Create PO G7 0.5 15.42 7.71

Award contract/Prepare PO G7 0.5 15.42 7.71

LTA Signature G7 0.5 15.42 7.71

Sub total 82.5 2,958.08

GOE (30%) 887.42

Total 3,845.50

BOS 2.0 2016-2020

42

The below table indicates that to renew an LTA it will take 20 hrs at a cost of USD 1,081.69.

Table 2 8: Recurring Labor Cost (LTA Renewal Cost)

Process Step Grade Level of staff involved Time Required (in hrs) Staff Pro-Forma Cost (USD) Total (USD)

LTA End of Period evaluation NOC 2 18.34 36.68

LTA End of Period evaluation P3 2 97.53 195.05

LTA End of Period evaluation P2 2 86.35 172.71

LTA End of Period evaluation G6 2 13.41 26.82





Site visits G7 1 15.42 15.42

Site visits NOC 1 18.34 18.34

LTA Renewal process NOB 1 15.81 15.81

LTA Renewal process G7 1 15.42 15.42

LTA Renewal process P3 1 97.53 97.53

Endorsement by Head of Agency D1/P6 1 153.81 153.81

Sub-total 20 832.07

GOE (30%) 249.62

Total 1,081.69

2.3.4. Coordination Costs of CP WG Members

The calculation of coordination costs for procurement assume that CP WG members attend 10 meetings in a year and spend two hours per meeting, whereas the Chair and Co-chair spend an additional 10 hours in a year for coordinate the Working Group. The calculations indicate that the CP WG members will spend 300 hours per year with an associated labor cost of USD 22,086.18 per year.

Table 2 9: Annual Coordination Cost of the CP WG Members

Working Group Staff Grade Level Time spent (in hours) Pro-Forma cost (per hour) (USD) Total (USD)

Chair P3 30 97.53 2,925.76Co-Chair NOC 30 18.34 550.19Member P3 20 97.53 1,950.50Member G7 20 15.42 308.46Member P2 20 86.35 1,727.07Member G6 20 13.41 268.18Member P3 20 97.53 1,950.5Member G4 20 9.25 184.92Member G6 20 13.41 268.18Member P3 20 97.53 1,950.5Member P3 20 97.53 1,950.5Member G6 20 13.41 268.18Member P4 20 116.10 2,321.92Member NOC 20 8.34 366.80Sub total 16,991.68GOE (30% of total cost) 5,097.50Total BOS Coordination Cost of the CPWG Members 300 22,089.18


43

2.3.5. Procurement Coordination Cost of the OMT, CP WG Members and RCO

As a summary, the below table shows the total coordination cost to the CP WG from the RCO, OMT members and CP WG members. The table shows that the total coordination cost to the CP WG from the RCO, OMT and WG members will be USD 44,510.61

Table 2 10: Total Annual Coordination Cost to the CP WG

TYPE

ITEM GRADE # of OMT Working Groups

STAFF COST (USD)

COST APPORTIONMENT (USD)

Common Service coordination cost

Dedicated Staff for Common Service Coordination P1 7* 77,139.16 11,019.88

OMT Coordination cost for Procurement WG

Staff time dedicated to meetings and coordination 6** 68,409.29 11,401.55

CP WG meetings and coordination cost

Staff time dedicated to meetings and coordination 22,089.18

Total Coordination Cost to the CP WG 44,510.61

* includes OMT and 6 OMT Working Groups

** includes 6 OMT Working Groups

During the BOS 2.0, 28 LTAs will be developed. Accordingly, the total coordination cost per LTA will be USD 1,590 per year. See the Table 1.11 for the total LTA development and renewal cost including the above annual coordination cost per LTA.

The below table indicates that the total cost to develop and renew common LTAs and coordination cost per LTA during the BOS 2.0 cycle will be USD 357,145.54.

Table 2 11: Total LTA development, LTA Renewal Cost and Total Coordination Cost

NAME OF COMMON SERVICES ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL (USD)

IT Equipment including Computers, Printer and Toners and Technical Support

LTA Development Cost- Staff Time 3,845.50 13,450.57LTA Renewal Cost 1,081.69 1,081.69 1,081.69

Total coordination cost* 1,590 1,590 1,590 1,590

Spare Part including TireLTA Development Cost- Staff Time 3,845.50

12,368.88LTA Renewal Cost 1,081.69 1,081.69Total coordination cost 1,590 1,590 1,590 1,590

Stationery including Printing Paper


Total coordination cost 1,590 1,590 1,590 1,590

Uniform / clothingLTA Development Cost- Staff Time 3,845.50

13,450.57LTA Renewal Cost 1,081.69 1,081.69 1,081.69Total coordination cost 1,590 1,590 1,590 1,590

Electrical equipmentLTA Development Cost- Staff Time 3,845.50


Office Equipment including Furniture



CateringLTA Development Cost- Staff Time 3,845.50


Hotel and Conference FacilitiesLTA Development Cost- Staff Time 3,845.50


BOS 2.0 2016-2020

44

Communication and production (video)

LTA Development Cost- Staff Time 3,845.50 12,368.88LTA Renewal Cost 1,081.69 1,081.69


Translations/ InterpretationLTA Development Cost- Staff Time 3,845.50


Custom Clearance (Company)LTA Development Cost- Staff Time 3,845.50


Advertising ServicesLTA Development Cost- Staff Time 3,845.50


Generator & Electro Mechanical Services



Maintenance (IT Equipment/ photocopier)



Vehicle Maintenance LTA Development Cost- Staff Time 3,845.50


Vehicle InsuranceLTA Development Cost- Staff Time 3,845.50


Postal and Currier Services including Cargo



Cleaning services (Company)LTA Development Cost- Staff Time 3,845.50


Temporary Driving Services (Company)



Messenger Services (Company)LTA Development Cost- Staff Time 3,845.50


Security Guard ServicesLTA Development Cost- Staff Time 3,845.50


Transportation Rental TrucksLTA Development Cost- Staff Time 3,845.50


Transportation Rental Bus LTA Development Cost- Staff Time 3,845.50


Transportation Rental CarLTA Development Cost- Staff Time 3,845.50


Printing Service



Warehouse/ Storage RentalLTA Development Cost- Staff Time 3,845.50


Event managementLTA Development Cost- Staff Time 3,845.50


Technical Consultancies and Training Services(includes: surveys, Micro Assessment , M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )

LTA Development Cost- Staff Time 3,845.50

12,368.88

LTA Renewal Cost 1,081.69 1,081.69

Total coordination cost1,590 1,590 1,590 1,590

Total Cost 82,975.00 124,555.90 74,807.32 74,807.32 357,145.54

* Includes the coordination cost of the OMT, RCO and CP WG members taken from the table below


45

Benefit-Monetary Benefit

The anticipated monetary saving for Common Services is based on a reduction of unit price due to the bargaining power of the UN through bulk purchase. An anticipated 7 percent discount in price due to bargaining power for all the common LTAs estimated to produce total savings of USD 9,668,039 for the BOS 2.0.

Table 2 12: Monetary Benefit due to 7% Cost Reduction

S. No. Procurement Category Total value in 2014 (USD)

Year 1 (2017)

Year 2 (2018)

Year 3 (2019)

Year 4 (2020) Total (USD)

1 IT Equipment including Computers, Printer and Toners and Technical Support 4,342,490 303,974 303,974 303,974 303,974 1,215,896

2 Spare Parts including tires 247,177 17,302 17,302 17,302 51,906

3 Stationery including Printing Paper 2,551,658 178,616 178,616 178,616 178,616 714,464

4 Uniform / clothing 484,149 33,890 33,890 33,890 33,890 135,560

5 Electrical equipment 2,946,731 206,271 206,271 206,271 206,271 825,084

6 Office Equipment including Furniture 1,858,324 130,083 130,083 130,083 130,083 520,332

7 Catering 715,992 50,119 50,119 50,119 150,357

8 Hotel and Conference Facilities 2,182,936 152,806 152,806 152,806 152,806 611,224

9 Communication and production (video) 1,001,486 70,104 70,104 70,104 210,312

10 Translations/ Interpretation 154,545 10,818 10,818 10,818 32,454

11 Custom Clearance (Company) 429,779 30,085 30,085 30,085 90,25512 Advertising Services 364,191 25,493 25,493 25,493 76,479

13 Generator & Electro Mechanical Services 2,127,321 148,912 148,912 148,912 446,736

14 Maintenance (IT Equipment/ photocopier) 155,279 10,870 10,870 10,870 32,610

15 Vehicle Maintenance 852,143 59,650 59,650 59,650 178,950

16 Vehicle Insurance 1,337,170 93,602 93,602 93,602 93,602 374,40817 Postal and Currier Services including Cargo 27,702 1,939 1,939 1,939 5,817

18 Cleaning services (Company) 932,853 65,300 65,300 65,300 195,900

19 Temporary Driving Services (Company) 268,173 18,772 18,772 18,772 56,316

20 Messenger Services (Company) 277,828 19,448 19,448 19,448 58,344

21 Security Guard Services 1,438,364 100,685 100,685 100,685 100,685 402,740

22 Transportation Rental Trucks 1,296,767 90,774 90,774 90,774 272,32223 Transportation Rental Bus 201,245 14,087 14,087 14,087 42,26124 Transportation Rental Car 3,407,025 238,492 238,492 238,492 238,492 953,968

25 Printing Services 1,100,642 77,045 77,045 77,045 77,045 308,18026 Warehouse/ Storage Rental 703,118 49,218 49,218 49,218 147,654

27 Event Management 79,867 5,591 5,591 5,591 16,773

28 Technical Consultancies and Training Services(includes: surveys, Micro Assessment , M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )

7,336,844 513,579 513,579 513,579 1,540,737

Total 38,821,799 1,515,464 2,717,525 2,717,525 2,717,525 9,668,039

BOS 2.0 2016-2020

46

In order to evaluate the impact and the benefit of developing common LTA, the below table shows a situation whereby each individual agencies needs in terms of common services to develop and run their own LTAs. Instead of developing 28 LTAs individually, 28 LTAs can be developed and shared them for common use. The table below shows the benefits of creating common LTA, i.e. saving on staff time and labor cost. The below table indicates that there will be a saving of labor cost of USD 41,289 due to the creation of common LTA by lead Agency as compared to creation by individual Agency for their own consumption.

Table 2 13: LTA Benefit-LTA Savings on Staff time

PROCESS # of UN Agencies # of LTAs Cost per LTA (USD) PERIODICITY TOTAL (USD)

Separate LTAs developed by each Agency for their individual use 29 28 3,845.50 1 3,122,546

Separate LTAs renewed by the Agencies for their individual use 29 28 1,081.69 3 2,634,997

TOTAL COST OF SEPARATE LTAs DEVELOPED & RENEWED BY THE INDIVIDUAL AGENCY (A) 5,757,543

Common LTA(s) developed by Lead Agency 28 1 3,845.50 1 107,674

Common LTA(S) renewed by Lead Agency (4 times over the UNDAF period)

10 10 1,081.69 3 324,507

18 18 1,081.69 2 700,935.12

TOTAL COST OF COMMON LTA(s) DEVELOPED & RENEWED BY ONE LEAD AGENCY ON BEHALF OF OTHERS (B) 1,133,116.12

TOTAL SAVING ON TRANSACTION COST ( A-B) 4,624,426.88

TOTAL STAFF TIME SAVING BY COMMON SERVICES converted into USD 28

165,158.10

The below table indicates the total labour cost savings as a result of the creation of the joint LTAs by a lead Agency is USD 3,881,166


47

Table 2 14: Labor Cost Saving-Recurring Benefit

Common Service Item Year 1 Year 2 Year 3 Year 4 Total (USD)

IT Equipment including Computers, Printer and Toners and Technical Support Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Spare Parts including tires Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Stationery including Printing Paper Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Uniform / clothing Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Electrical equipment Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Office Equipment including Furniture Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Catering Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Hotel and Conference Facilities Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Communication and production (video) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Translations/ Interpretation Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Custom Clearance (Company) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Advertising Services Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Generator & Electro Mechanical Services Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Maintenance (IT Equipment/ photocopier) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Vehicle Maintenance Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Vehicle Insurance Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Postal and Currier Services including Cargo Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Cleaning services (Company) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Temporary Driving Services (Company) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Messenger Services (Company) Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Security Guard Services Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Transportation Rental Trucks Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Transportation Rental Bus Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Transportation Rental Car Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Printing Services Staff time saved 41,289.00 41,289.00 41,289.00 41,289.00 165,156.00

Warehouse/ Storage Rental Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Event Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Technical Consultancies and Training Services(includes: surveys, Micro Assessment , M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )

Staff time saved 41,289.00 41,289.00 41,289.00 123,867.00

Total Recurring Benefit 412,890.00 1,156,092.00 1,156,092.00 1,156,092.00 3,881,166.00

BOS 2.0 2016-2020

48

Table 2 15: Total Cost and Projected Annual Saving of Procurement

TYPE COMMON SERVICES

ALL UN AGENCIES DATA CONSOLIDATED

Total cost

SAVINGS ON TRANSACTION COST

Targeted % reduction on Service cost

Projected Annual Savings on Service

cost (Ceteris paribus)

BASELINE COST

Total amount (USD) invoiced by the Supplier

in 2014

# of Transactions

(# of processes)

Unit Transaction

cost

Total transaction

cost (Staff time)

(USD)

Unit saving Total saving (on transaction cost )

NEW

CO

MM

ON

SER

VIC

ES


4,342,490 275 1,515 416,625.00 4,759,114.60 1,285 353,375.00 7% 303,974

Spare parts including tires 247,177 31 1,515 46,965.00 294,142.00 1,285 39,835.00 7% 17,302

Stationery including Printing Paper 2,551,658 223 1,515 337,760.47 2,889,418.31 1,285 286,516.49 7% 178,616

Uniform / clothing 484,149 52 1,515 78,760.29 562,909.36 1,285 66,811.02 7% 33,890

Electrical equipment 2,946,731 74 1,515 112,081.95 3,058,812.59 1,285 95,077.22 7% 206,271

Office Equipment including Furniture 1,858,324 189 1,515 286,263.36 2,144,586.98 1,285 242,832.36 7% 130,083

Catering Service 715,992 14 1,515 21,204.69 737,196.52 1,285 17,987.58 7% 50,119

Hotel and Conference Facilities 2,182,936 183 1,515 277,175.63 2,460,111.54 1,285 235,123.40 7% 152,806

Communication and production (video) 1,001,486 76 1,515 115,111.19 1,116,596.73 1,285 97,646.87 7% 70,104

Translations/ Interpretation 154,545 51 1,515 77,245.67 231,790.66 1,285 65,526.19 7% 10,818

Custom Clearance (Company) 429,779 45 1,515 68,157.94 497,936.91 1,285 57,817.23 7% 30,085

Advertising Services 364,191 73 1,515 110,567.33 474,758.07 1,285 93,792.39 7% 25,493

Generator & Electro Mechanical Services 2,127,321 43 1,515 65,128.70 2,192,449.38 1,285 55,247.57 7% 148,912

Maintenance (IT Equipment/ photocopier) 155,279 24 1,515 36,350.90 191,629.82 1,,285 30,835.86 7% 10,870

Vehicle Maintenance 852,143 158 1,515 239,310.11 1,091,452.76 1,285 203,002.71 7% 59,650

Insurance 1,337,170 41 1,515 62,099.46 1,399,269.59 1,285 52,677.92 7% 93,602

Postal and Currier Services including Cargo 27,702 39 1,515 59,070.22 86,771.83 1,285 50,108.26 7% 1,939

Cleaning services (Company) 932,853 95 1,515 143,888.99 1,076,741.78 1,285 122,058.59 7% 65,300

Temporary Driving Services (Company) 268,173 16 1,515 24,233.94 292,406.94 1,285 20,557.24 7% 18,772

Messenger Services (Company) 277,828 66 1,515 99,964.98 377,792.65 1,285 84,798.60 7% 19,448

Security Guard Services 1,438,364 81 1,515 122,684.30 1,561,048.34 1,285 104,071.01 7% 100,685

Transportation Rental Trucks 1,296,767 13 1,515 19,690.07 1,316,457.28 1,285 16,702.75 7% 90,774

Transportation Rental Bus 201,245 16 1,515 24,233.94 225,478.75 1,285 20,557.24 7% 14,087

Transportation Rental Car 3,407,025 96 1,515 145,403.61 3,552,428.41 1,285 123,343.42 7% 238,492

Printing Services 1,100,642 114 1,515 172,666.79 1,273,309.14 1,285 146,470.31 7% 77,045

Warehouse/ Storage Rental 703,118 38 1,515 57,555.60 760,674.02 1,285 48,823.44 7% 49,218

Event management 79,867 7 1,515 10,602.35 90,469.20 1,285 8,993.79 7% 5,591

Technical Consultancies and Training Services (includes: surveys, Micro Assessment , M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services)

7,336,844 111 1,515 168,122.92 7,504,966.90 1,285 142,615.83 7% 513,579

Total 38,821,799 2,244 3,398,925 42,220,721 2,883,205 2,717,525


49

2.3.6. Cost Benefit Analysis (CBA) for New Common Procurement Services

The below table shows that the BOS 2.0 Common Procurement Services is expected to generate a total savings of USD 13,549,205 comprised of material cost saving of USD 9,668,039 and labor cost saving of USD 3,881,166.

Table 2 16: Cost Benefit Analysis (CBA) for the CP WG

A B C D E F G

COMMON SERVICE LINES (OUTCOMES)

PROPOSED NEW COMMON SERVICES (OUTPUT)

TOTAL DIRECT COST (MONETARY +LABOR)

(USD)

TOTAL DIRECT BENEFIT(MONETARY + LABOR)

(USD)

PRIORITY RATIOTOTAL BENEFT/

TOTAL COSTD/C

OTHER CONSIDERATIONS

FINAL PRIORITIZATION

OF SERVICES(RANKING)

Procurement service

IT equipment including computers, printer, and toners and technical support

14,950.57 1,381,052.00 92.4 2

Spare parts including tire 13,868.88 175,773.00 12.7 22

Stationary including printing paper 14,950.57 879,620.00 58.8 5

Uniform/Clothing 14,950.57 300,716.00 20.1 16

Electrical equipment 14,950.57 990,240.00 66.2 4

Office equipment including furniture 14,950.57 685,488.00 45.9 7

Catering 13,868.88 274,224.00 2.2 28

Hotel and Conference Facilities 14,950.57 776,380.00 51.9 6

Communication and production (Video) 13,868.88 334,179.00 24.1 13

Translations/Interpretation 13,868.88 156,321.00 11.27 25

Custom Clearance (Company) 13,868.88 214,122.00 15.4 18

Advertising Service 13,868.88 200,346.00 14.4 19

Generator and Electro-Mechanical Service 13,868.88 570,603.00 41.1 8

Maintenance( IT equipment/Photocopier) 13,868.88 156,477.00 11.28 24

Vehicle Maintenance 13,868.88 302,817.00 21.8 15

Vehicle Insurance 14,950.57 539,564.00 36.1 10

Postal and Courier Service including Cargo 13,868.88 129,684.00 9.4 27

Cleaning Service (Company) 13,868.88 319,767.00 23.1 14

Temporary Driving Service (Company) 13,868.88 180,183.00 13.0 21

Messenger Services (Company) 13,868.88 182,211.00 13.1 20

Security Guard Service 14,950.57 567,896.00 38.0 9

Transportation Rental Truck 13,868.88 396,189.00 28.6 12

Transportation Rental Bus 13,868.88 166,128.00 12.0 23

Transportation Rental Car 14,950.57 1,119,124.00 74.9 3

Printing Services 14,950.57 473,336.00 31.7 11

Ware house/Storage rental 13,868.88 271,521.00 19.6 17

Event Management 13,868.88 140,640.00 10.1 26

Technical Consultancies and Training Services (includes Survey, Micro-Assessment)

13,868.88 1,664,604.00 120.0 1

Total 399,145,54 13,549,205

BOS 2.0 2016-2020

50

2.3.7. Common Finance Services

Two common services 1) harmonizing banking services, and 2) harmonizing foreign currency exchange dealing with banks to get better exchange rate were subject to CBA.

Harmonizing Banking Services – based on the data obtained from the Commercial Bank of Ethiopia-ECA branch, the total amount of service charges paid by 9 UN Agencies (FAO, ILO, IOM, UNDP, UNAIDS, UNHCR, UNICEF, UNESCO, WHO) in 2014 was USD 188, 514.51 (See annex 1). The BOS 2.0 activities under this priority include conducting a banking survey and assigning a lead agency to negotiate with banks on behalf of other UN Agencies, to get improved services and a reasonable bank service fee. If it is possible to get a 10 percent reduction through negotiation of the service charge, the UNCT can save USD 18,800 annually. Over the BOS 2.0 cycle, it is possible to save USD 75,200. The Commercial Bank of Ethiopia has waived the service charge on salary payments, which was Ethiopian Birr (ETB) 5/person (USD 0.25/person). This benefit will be maintained if UN Agencies sign an agreement with the bank.

Monetary Saving from Foreign Currency Exchange Transaction - The NBE issued a new directive on February 2014, which states that the foreign exchange rate has been fixed at the minimum rate and banks are required to offer the lowest / buying

exchange rate to UN Agencies. Before the issuance of the directive, UN Agencies were able to negotiate the exchange rate with banks and sell foreign currency at the maximum available rate, the selling rate. The table below shows the amount of USD converted to ETB from 6 UN Agencies in 2014 and the loss due to the new directive.

Table 2 17: Amount of Loss on Foreign Currency Exchange Rate dealing

Year 2014

TotalUN Agencies

WFP, UNDP, UNHCR, UNICEF, UNESCO, WHO

Amount of USD converted to Ethiopian Birr 392,319,792.18 392,319,792.18

Amount of loss due to the new directive (USD) 7,846,395.84 7,846,395.84

Loss in % 2 2

The data collected from these UN Agencies indicates that the amount of loss in 2014 due to the new directive was USD 7,846,395.84. This shows that on average the UN Agencies in Ethiopia will lose 2 percent of the amount of USD converted to ETB each year. Over the BOS 2.0 the total loss is estimated at USD 32,000,000. If the UN Agencies negotiate with the Government of Ethiopia and save at least 50 percent of the loss, e.g. USD 4,000,000 per year, over the BOS 2.0 cycle, it will be possible to save USD 16,000,000.

The table below shows the monetary cost needed to implement common services identified for the FWG.


51

Table2 18: One-Time and Recurring Cost-Monetary Cost for the Common Finance Service

Common Services Item Year 1 Year 2 Year 3 Year 4 Total

UN Agencies in Ethiopia has established a common banking Service Level Agreement (SLA) with bank

Consultancy fee for banking survey 1,500 1,500

UN Agencies in Ethiopia have obtained favorable foreign exchange rate

Facilitate training on financial management for UN Finance staff from Chartered Institute of Public Finance and Accountancy (CIPFA)

37,000 37,000 74,000

Total One Time and Recurring Cost 1,500 37,000 37,000 75,500

2.3.8. Common Finance Services Coordination Cost

There is a coordination cost from the Finance Working Group (FWG) members and OMT members to perform the activities assigned to the FWG. The table below shows the coordination cost of the FWG. The chair and co-chair will spend 30 hours per year and the rest members will spend 20 hours per year for coordination. The annual coordination cost of the FWG member is USD 11,002.42 per year.

Table2 19: Annual Coordination Cost of FWG Members

Working Group Grade Level Time Required (in hrs) Pro-Forma Cost(per hour) (USD) Total (USD)

Chair NOC 30 18.34 550.20

Co-Chair P4 30 116.1 3,483.00

Member G6 20 13.41 268.20

Member P4 20 116.1 2,322.00

Member G4 20 9.25 185.00

Member G6 20 13.41 268.20

Member NOA 20 13.99 279.80

Member SSA 20 7.21 144.20

Member NOB 20 15.81 316.20

Member NOC 20 18.34 366.80

Member NO-A 20 13.99 279.80

SUBTOTAL 240 8,463.40

GOE (30% OF TOTAL COST) 2,539.02

TOTAL FWG MEMBERS BOS COORDINATION COST 11,002.42

The total Annual coordination cost for FWG, which includes the Annual coordination cost of the FWG members (USD 11,002.42); the Annual coordination cost of the OMT to the FWG activities (USD 11, 401.55); and the Annual Common Service Coordination to the Finance Working Group (USD 11,019.88) is USD 33,423.80. Assume the total coordination cost is allocated for three common services 1). Harmonizing banking services, 2). Harmonizing foreign currency and 3). Conducting joint VAT reclaim. Thus, the total Annual coordination cost per finance common service will be USD 1,141.26 (USD 33,423.80/3). Accordingly, the total coordination cost per

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52

finance common service for the four year cycle (USD 11,141.26* 4 years) is USD 44,565.06. This coordination cost should be included in the recurring labor cost of the three Finance Common Services. See the Table 2.20 for the total direct cost for common finance services including the above total annual coordination cost for four years and the cost for establishing the common banking Service Level Agreement (SLA).

2.3.9. Cost Benefit Analysis Common Finance Services

Table2 20: Cost Benefit Analysis for Common Finance Service

A B C D E F G


PROPOSED NEW COMMON SERVICES

(OUTPUT)

TOTAL DIRECT COST (MONETARY

+LABOR)(USD)

TOTAL DIRECT BENEFIT

(MONETARY + LABOR)(USD)


TOTAL COSTD/C





UN Agencies in Ethiopia has established a common banking service agreement with bank

46,065.06 75,200 1.63 2

UN Agencies in Ethiopia have obtained favorable foreign exchange rate

118,565.13 16,000,000 134.951

Total 164,630.19 16,075,200

2.3.10. Harmonized Approach to Cash Transfers

Joint Micro-Assessments - The UNCT in Ethiopia has signed LTA with two local audit firms in March 2015 to conduct HACT Micro Assessment of the UN IPs, namely Merit Management Consulting and A.W. Thomas Limited Partnership. These LTAs are active until March 2017. The table below shows the savings from conducting joint micro-assessment of a current 24 shared IPs.

Table2 21: Cost Saving from Joint Micro-Assessment of Shared IPs

Average cost per IP (including professional fee,

travel, per diem and other cost) in USD

No. of Shared IPs

No of participating UN

Agencies

Total cost required to conduct micro-assessment of IPs if each individual agency conduct by

itself (USD)

Total cost required to conduct joint micro-

assessment of IPs by lead Agency (USD)

Cost saving due to joint micro-

assessment (USD)

3,000 24 3 216,000 72,000 144,000

Total Cost Saving due to Joint Micro-Assessment of shared IPs 144,000

Joint Capacity Development –Joint HACT Capacity Development training programmes were organized in September and November 2015. 145 staff from 78 IPs (35 staff from 18 NGOs and 110 staff from 60 government IPs) attended the training. The total cost of the training programmes were USD 39,391. The training cost per IP was USD 500. For 24 shared IPs, the total savings from conducting joint HACT training programmes is as follows:


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Table2 22: Cost Saving from Joint Capacity Development Training

No. of shared IPs

Average Cost per IP (USD)

No. of UN participating UN Agencies

Total cost required to conduct capacity

development training, if each individual agency conduct by itself (USD)

Total cost required to conduct capacity

development training jointly by lead agency (USD)

Cost saving due to conducting joint

capacity development training (USD)

24 500 3 36,000 12,000 24,000

Total cost saving from conducting Joint Capacity Development training on HACT per training 24,000

During the BOS 2.0 cycle, there is a plan to conduct eight training programmes (four on HACT and four on spot check performance) as a result; the calculated savings are USD 192,000.

HACT Audit - In Ethiopia, UN Agencies have individual contracts with different audit firms with different costs. The table below shows the ABC method to estimate the total time needed to conduct a HACT audit of an IP. The below table shows that to conduct an audit UN Agency requires a total time of 124 hours and a transaction cost of USD 5,720.64.

Table2 23: Activity Based Costing (ABC) Method of Audit by Agency

Description Grade level of staff involved

Time taken in hours

Pro Forma cost per hour in USD

Total costIn USD

Check the price rating and amount of cash planned to be transferred to the IP NOC 0.5 18.34 9.17

Prepare TOR for schedule audit NOC 4 $18.34 73.36

Recruitment of third party service provider

Technical Evaluation P4 7.5 116.1 870.75

Technical Evaluation P4 7.5 116.1 870.75

Technical Evaluation NOC 7.5 18.34 137.55

Technical Evaluation NOC 7.5 18.34 137.55

Technical Evaluation G6 7.5 13.41 100.58

Financial Evaluation P3 7.5 97.53 731.48

Financial Evaluation NOC 7.5 18.34 137.55

Financial Evaluation G6 7.5 13.41 100.58

Prepare contract and contact audit firm P3 4 97.53 390.12

Discuss with the third party service provider before the audit NOC 4 18.34 73.36

Discuss with the third party service provider before the audit G6 4 13.41 53.64

Project Management Unit shares audit report to sections for comments NOC 0.5 18.34 9.17

Review the report NOC 7.5 18.34 137.55

Review the report NOB 7.5 15.81 118.58

Review the report G6 7.5 13.41 100.58

Review the report G5 7.5 11.56 86.70

Project Management Unit submit consolidated comments to the audit firm P5 6 133.91 803.46

Project Management Unit submit consolidated comments to the audit firm P4 6 116.1 696.60

Audit firm incorporates comments and share to the PMU $0.00

Discuss with each IP on overall risk rating NOB 4 15.81 63.24

If significant number of IPs are identified as significant or high risk prepare capacity development plan NOC 1 18.34 18.34

Total 124 5,720.64

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The labor cost saving from 3 UN Agencies (UNDP, UNICEF and UNFPA) conducting joint audit on 24 shared IPs is as follows:

Table2 24: Labor Cost Saving from Joint HACT Audit

No. of shared IPs Transaction cost per IP in USD

No. of UN Agencies participating

(funding for shared IPs)

Total transaction cost if audit is conducted by individual

Agencies in USD

Total transaction cost if joint HACT audit is conducted on

shared IPs through a lead Agency in USD

Labor cost saving in USD

24 5720.64 3 411,886.08 137,295.36 274,590.92

Total labor Cost Saving from conducting Joint Audit on 24 shared IPs 274,590.92

The costs to develop and/or maintain HACT common services are:

Table2 25: Recurring Monetary Cost for HACT Working Group

Common service Item Year 1 Year 2 Year 3 Year 4 Total in USD

UN Agencies have conducted Joint Micro-Assessment for shared IPs

Cost for Joint Micro-Assessment/24 shared IPs/ 13,500 13,500 13,500 13,500 54,000

UN Agencies have conducted Joint HACT audit for shared IPs Audit fee for 24 shared IPs 9,000 9,000 9,000 9,000

36,000


Capacity development training on HACT & financial management to IPs (24 shared IPs)

18,625 18,625 18,625 18,625 74,500

Total Recurring Cost 41,125 41,125 41,125 41,125 164,500

2.3.11. Harmonized Approach to Cash Transfer Coordination Costs

The table below shows HACT coordination costs. The Chair and Co-chair will spend 30 hours per year and the HACT working group members will spend 20 hours per year on coordination. Coordination cost of the working group members per year is USD 17,272.45 per year.

Table2 26: Annual Coordination Cost of HACT WG Members

Working Group Grade Level Time Spent (in hrs) (USD) Pro-Forma cost (per hour) (USD) Total (USD)

Co-Chair SB4 30 7.21 216.3

Member G6 20 13.41 268.2

Member P4 20 116.1 2322

Member P3 20 97.53 1950.6

Member G7 20 15.42 308.4

Member P4 20 116.1 2322

member NOC 20 18.34 366.8

member G6 20 13.41 268.2

Member P4 20 116.1 2322

Focal Point P3 20 97.53 1950.6

Member G7 20 15.42 308.4

Member NOB 20 15.81 316.2

Member NOC 20 18.34 366.8

Sub-total 270 13,286.5

GOE (30% of total cost) 3,985.95

TOTAL HACT WG MEMBERS BOS COORDINATION COST 17,272.45


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The total Annual coordination cost for HACT Working Group (WG), which includes the Annual coordination cost of the HACT WG members (USD 17,272.45), the Annual coordination cost of the OMT to the HACT WG activities (USD 11, 401.55); and the Annual Common Service Coordination to the HACT WG (USD 11,019.88) is USD 39,693.88. Assume the total coordination cost is allocated for four common services 1). Conducting joint HACT Micro Assessment s of shared IPs, 2). Conducting joint HACT audits of shared IPs, 3). Developing joint capacity development training on HACT for IPs and UN staff and 4). preparing a joint assurance plan for shared IPs. Thus, the total Annual coordination cost per HACT common service will be USD 9,923.47 (USD 39,693.88/3). Accordingly, the total coordination cost per HACT common service for the four year cycle (USD 9,923.47* 4 years) is USD 39,693.88. This coordination cost should be included in the recurring labor cost of the four HACT common services. See the Table 2.27 for the total direct cost for common HACT services including the above total annual coordination cost for four years and the cost for conducting Joint Micro Assessment for shared IPs.

2.3.12. Cost Benefit Analysis (CBA) for new common services for HACT

Table2 27: Cost Benefit Analysis (CBA) for HACT WG

A B C D E F G



(OUTPUT)

TOTAL DIRECT COST (MONETARY + LABOR)

(USD)


(USD)


TOTAL COSTD/C




HACT

UN Agencies have conducted Joint Micro Assessment for shared IPs

93,693.88 144,000 1.54 2

UN Agencies have conducted Joint HACT Audit for shared IPs

212,973.88 274,590 1.29 3

The capacities of UN staff and IPs on HACT and Spot Check Performance is enhanced

114,193.88 192,000 1.68 1

Total 420,861.64 610,590

2.3.13. Human Resource and Common Premises Services

Joint Advertisement and Joint Recruitment – the CBA calculates the anticipated savings in staff time devoted to recruitment of staff using ABC method comparing the costs of a standard recruitment process at Agency level with and without joint recruitment.

The below table indicates that a standard recruitment process without joint recruitment will take 87.5 hours with a labor cost of USD 1,783.08. However, the same recruitment process with joint recruitment will take only 7 hours with a labor cost of USD 286.05. This suggests a USD 1,497 transaction cost reduction per recruitment process and 80.5 hours saving in time due to joint recruitment.

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According to the data obtained from 10 UN Agencies (FAO, ILO, IOM, UNAIDs, UNDP, UNHCR, WHO, UNESCO, UNICEF and UNOPS), the total number of staff recruited in 2014 was 371 (see Annex 1). Assuming 7 percent of these staff are recruited through joint recruitment process e.g. 25 staff per year, the total labor cost savings per year will be USD 37,425. In the BOS 2.0 the UNCT can therefore anticipate to save USD 149,700 in transaction costs by jointly recruiting 100 staff.

Table2 28: Standard Process with and without Joint Recruitment

Standard recruitment Steps in recruitment process joint

Grade level

of staff involved

Time spent (in

hours)

Pro forma

cost (USD)

Total cost (USD) Steps in recruitment process

Grade level of

staff

Time spent

(in hours

Pro forma

cost (USD)

Total cost

(USD)

Prepare request for recruitment NOC 0.5 18.34 9.17 Prepare request for recruitment NOC 0.5 18.34 9.17

Preparation of TOR NOC 2 18.34 36.68 Preparation of TOR NOC 0 18.34 0.00

Review of TOR NOB 0.5 15.81 7.91 Review of TOR NOB 0.5 15.81 7.91

Approval of TOR P3 0.5 97.53 48.77 Approval of TOR P3 0.5 97.53 48.77

Vacancy announcement preparation NOB 0.5 15.81 7.91 Vacancy announcement preparation NOB 0 15.81 0.00

Publication NOB 1 15.81 15.81 Publication NOB 0 15.81 0.00

Online Publication G6 1 13.41 13.41 Online Publication G6 0 13.41 0.00

Long list G7 12 15.42 185.04 Long list G7 0 15.42 0.00

Short list NOC 4 18.34 73.36 Short list NOC 0 18.34 0.00

Short list NOB 2 15.81 31.62 Short list NOB 0 15.81 0.00

Written test preparation NOC 4 18.34 73.36 Written test preparation NOC 0 18.34 0.00

Written test Administration G5 2 11.56 23.12 Written test Administration G5 0 11.56 0.00Written test Administration G7 3 15.42 46.26 Written test Administration G7 0 15.42 0.00Written test marking NOC 2 18.34 36.68 Written test marking NOC 0 18.34 0.00Written test marking NOC 2 18.34 36.68 Written test marking NOC 0 18.34 0.00Written test marking NOB 2 15.81 31.62 Written test marking NOB 0 15.81 0.00Interview question preparation NOB 2 15.81 31.62 Interview question preparation NOB 0 15.81 0.00Interview question preparation G6 2 13.41 26.82 Interview question preparation G6 0 13.41 0.00Interview panel NOC 5 18.34 91.70 Interview panel NOC 0 18.34 0.00Interview panel NOD 5 21.28 106.40 Interview panel NOD 0 18.34 0.00Interview panel NOB 5 15.81 79.05 Interview panel NOB 0 15.81 0.00Interview panel G6 5 13.41 67.05 Interview panel G6 0 13.41 0.00Interview report G6 5 13.41 67.05 Interview report G6 0 13.41 0.00Reference check G7 3 15.42 46.26 Reference check G7 0 15.42 0.00Compliance Review Panel G6 4 13.41 53.64 Compliance Review Panel G6 0 13.41 0.00Compliance Review Panel NOB 2 15.81 31.62 Compliance Review Panel NOB 0 15.81 0.00Compliance Review Panel NOC 2 18.34 36.68 Compliance Review Panel NOC 0 18.34 0.00Compliance Review Panel P4 2 116.1 232.20 Compliance Review Panel P4 0 116.1 0.00CRP Report G7 1 15.42 15.42 CRP Report G7 0 15.42 0.00 Endorsement by HoA D1 1 153.81 153.81 Endorsement by HoA D1 1 153.81 153.81Offer letter G6 0.5 13.41 6.71 Offer letter G6 0.5 13.41 6.71Medical clearance G6 0.5 13.41 6.71 Medical clearance G6 0.5 13.41 6.71Appointment letter G6 0.5 13.41 6.71 Appointment letter G6 0.5 13.41 6.71Create staff vendor G7 1 15.42 15.42 Create staff vendor G7 1 15.42 15.42Hiring (Insurance, payroll setup, pension fund ) G7 2 15.42 30.84 Hiring (Insurance, payroll setup,

pension fund ) G7 2 15.42 30.84

Total 87.5 1783.08 7 286.05Standard unit transaction cost without joint recruitment (A) 1783.08 Time required in a process without joint recruitment in hr 87.5Standard unit transaction cost with joint recruitment (B) 286.05 Time required in a process with joint recruitment (in hrs) 7

Savings on transaction cost if joint recruitment is implemented(A-B) 1497.03 Savings on time (in hours) 80.5

Percentage saving on transaction cost 84% Percentage saving on time 92%


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HR Consultant Roster and Support Services Staff - The below table shows the labor cost saving for recruiting consultant and support service staff from a HR Roster of Consultants. According to the data obtained from 9 UN Agencies (FAO, ILO, IOM, UNAIDs, UNDP, UNHCR, WHO, UNESCO, UNICEF), a total of 325 consultants were recruited in 2014. Assuming that 20 percent of the total, e.g. 65 consultants are recruited from the HR Consultant Roster, there will be a labor cost saving of USD 128,700 per year. Over the BOS 2.0 cycle, if 260 consultants are recruited from the HR Consultant Roster the total savings will be USD 514,800.

Table2 29: Standard Process with and without HR Consultant Roster

Recruitment process without HR Roster Recruitment process using HR Roster

Steps in recruitment process Grade level of staff

Time spent (in hours)

Pro forma cost (USD)

Total cost (USD) Steps in recruitment process Grade level

of staffTime spent (in hours) Pro forma cost Total cost

(USD)

Requisition and Sourcing Requisition and Sourcing

Prepare TOR and submit request to the procurement unit G6 8.5 13.41 113.99 Prepare TOR and submit request to the

procurement unit G6 8.5 13.41 113.99

Prepare TOR and submit request to the procurement unit NOB 8.5 15.81 134.39 Prepare TOR and submit request to the

procurement unit NOB 15.81 0.00

Procurement unit review request and TOR G7 8.5 15.42 131.07 Procurement unit review request and TOR G7 15.42 0.00

Procurement unit review request and TOR NOB 4.25 15.81 67.19 Procurement unit review request and TOR NOB 15.81 0.00

Position advertised on the website G5 51 11.56 589.56 Position advertised on the website G5 11.56 0.00

Position advertised on the website G7 17 15.42 262.14 Position advertised on the website G7 15.42 0.00

Long listing of Candidates G7 17 15.42 262.14 Long listing of Candidates G7 15.42 0.00

Long listing of Candidates NOB 17 15.81 268.77 Long listing of Candidates NOB 15.81 0.00

Short list based on candidates profiles G7 8.5 15.42 131.07 Short list based on candidates profiles G7 15.42 0.00

Short list based on candidates profiles NOB 8.5 15.81 134.39 Short list based on candidates profiles NOB 15.81 0.00

Short listed candidates asked to provide full proposal G5 2.125 11.56 24.57 Short listed candidates asked to

provide full proposal G5 2.125 11.56 24.57

Technical evaluation and reporting G7 8.5 15.42 131.07 Technical evaluation and reporting G7 8.5 15.42 131.07

Technical evaluation and reporting NOB 8.5 15.81 134.39 Technical evaluation and reporting NOB 8.5 15.81 134.39

Financial evaluation and finalization of selection process G7 2.125 15.42 32.77 Financial evaluation and finalization of

selection process G7 2.125 15.42 32.77

Financial evaluation and finalization of selection process NOB 2.125 15.81 33.60 Financial evaluation and finalization of

selection process NOB 2.125 15.81 33.60

Process review and approval NOB 4.25 15.81 67.19 Process review and approval NOB 4.25 15.81 67.19

Discussion with selected candidates on details and pricing G7 8.5 15.42 131.07 Discussion with selected candidates

on details and pricing G7 8.5 15.42 131.07

Discussion with selected candidates on details and pricing NOB 8.5 15.81 134.39 Discussion with selected candidates

on details and pricing NOB 8.5 15.81 134.39

Discussion with selected candidates on details and pricing NOC 8.5 18.34 155.89 Discussion with selected candidates

on details and pricing NOC 8.5 18.34 155.89

Approval and signature of Contract P5 4.25 133.91 569.12 Approval and signature of Contract P5 4.25 133.91 569.12

Vendor creation and E-requisition Vendor creation and E-requisition

Vendor create and approval G5 4.25 11.56 49.13 Vendor create and approval G5 4.25 11.56 49.13

Requisition adjustment NOB 2.125 15.81 33.60 Requisition adjustment NOB 2.125 15.81 33.60

Requisition re-approval (if required) NOC 2.125 18.34 38.97 Requisition re-approval NOC 2.125 18.34 38.97

Review of documentation G5 2.125 11.56 24.57 Review of documentation G5 2.125 11.56 24.57

Sourcing of requisition into PO G6 4.25 13.41 56.99 Sourcing of requisition into PO G6 4.25 13.41 56.99

Review and approval the PO NOB 2.125 15.81 33.60 Review and approval the PO NOB 2.125 15.81 33.60

Notify the requester G6 2.125 13.41 28.50 Notify the requester G6 2.125 13.41 28.50

Check budget and dispatch PO G5 2.125 11.56 24.57 Check budget and dispatch PO G5 2.125 11.56 24.57

Documentation of the process G6 2.125 13.41 28.50 Documentation of the process G6 2.125 13.41 28.50

Certification of delivery and payment order NOB 4.25 15.81 67.19 Certification of delivery and payment

order NOB 4.25 15.81 67.19

Send PO to finance G5 8.5 11.56 98.26 Send PO to finance G5 8.5 11.56 98.26

Process payment G5 25.5 11.56 294.78 Process payment G5 25.5 11.56 294.78

Process payment G7 4.25 15.42 65.54 Process payment G7 4.25 15.42 65.54

Total 272 4,352.91 Total 131.75 2,372.20

Standard unit transaction cost in recruitment without HR Roster (A) 4,352.91 Time required in recruitment without HR Roster in hr hours) 272

Standard unit transaction cost in recruitment with HR Roster (B) 2,372.20 Time required in recruitment with HR Roster (in hours) 131.75

Savings on transaction cost if HR Roster is used (A-B) 1980 Savings on time (in hours) 140

Percentage saving on transaction cost 45.5% Percentage saving on time 51.5%

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Joint Learning Programme - According to the data obtained from the above mentioned 9 UN Agencies, the total training cost paid in 2014 was USD 370,628. Assume 5 percent of this training cost is saved by organizing joint learning programme in one session. This shows that there will be a saving of USD 18,500 per session. Over the BOS 2.0 cycle, there is a plan to provide eight joint training, which will result in a total saving of USD 148,000.

The one time and recurring monetary costs of HR and Common Premises Services are outlined in the two tables below:

Table2 30: One-Time Monetary Cost of HR Roster for Local Consultants and Support Service Staff

Common Service Item Year 1(in USD)

Year 2(in USD)

Year 3(in USD)

Year4(in USD)

Total(USD)

HR Roster of Local Consultant and Support Service Staff is developed and operationalized to all UN Agencies in Ethiopia

Advertisement cost for Consultancy 1,500 1,500

Consultancy fee to develop UN Roster of consultant 4,500 4,500

Recruitment of ICT consultant for the development of UN Roster of consultant

8,200 8,200

Total One Time Cost 14,200 14,200

Table2 31: Recurring Monetary Cost of other HR and Common Premises Services

Common Service Item Year 1(in USD)

Year 2(in USD)

Year 3(in USD)

Year4(in USD)

Total(USD)


Refreshment 300 300 300 300 1,200

The UN Agencies in Ethiopia has established a common effective learning programme

Conduct CBI training programmes for two weeks for 50 UN staffs per year

4,000 4,000 4,000 4,000 16,000

OMT training programmes (Retreat, induction program

1,500 1,500 1,500 4,500

Capacity development training on professional certificate on HR

10,000 10,000 20,000

A reward framework is established to give recognition for individual showing outstanding achievement in the OMT and OMT WG’s work

Procure award items (medals, trophies, certificates)

1,000 2,000 2,000 2,000 7,000

Organize ceremony and handover rewards

Total Recurring Cost 5300 17,800 7,800 17,800 48,700

2.3.14. Human Resource and Common Premises Services Coordination Costs

There are coordination costs associated with the coordination of HR and Common Premises Services for the performance of activities assigned to the HR WG. The table below shows the coordination costs for the HR Services. The Chair and Co-chair will spend 30 hours per year and all other members of the HR WG will spend 20 hours per year for coordination. The coordination cost of Common HR Services in one year is 300 hours at a cost of USD 16,747.


59

Table2 32: Annual Coordination Cost of HR WG Members

Working Group Grade Level Time Required (in hrs)

Pro-Forma Cost (per hour) (USD) Total (USD)

Chair NOB 30 15.81 474.3

Member P4 20 116.1 2322

Member G7 20 15.42 308.4

Member G6 20 13.41 268.2

Member P2 20 86.35 1727

Member G4 20 9.25 185

Member G5 20 11.56 231.2

Member NOC 20 18.34 366.8

Member P4 20 116.1 2322

Member NOA 20 13.99 279.8

Member NOA 20 13.99 279.8

Member G6 20 13.41 268.2

CO-Chair P4 30 116.1 3483

Member NOC 20 18.34 366.8

Sub total 300 12,882

GOE (30% OF TOTAL COST) 3,864

TOTAL HRWG MEMBERS BOS COORDINATION COST 16,747

The total Annual coordination cost for the HR WG, which includes the Annual coordination cost of the HR WG members (USD 16,747); the Annual coordination cost of the OMT to the HR WG activities (USD 11, 401.55); and the Annual Common Service Coordination to the HR WG (USD 1,019.88) is USD 39,168.43. Assume the total coordination cost is allocated for six common services: 1). Establishing joint advertisement and recruitment modalities, 2). Developing a common learning programme, 3). Developing an HR roster of local consultants and support services staff, 4) Designing a recognition and award framework to reward individual and group performances, 5). Harmonizing local consultancy rates of UN Agencies and 6). Harmonizing internship modalities of UN Agencies. Thus, the total Annual coordination cost per HR and common premises services will be USD6,528.07 (USD 39,168.43/6) Accordingly, the total coordination cost per HR common service for the four year cycle (USD 6,528.07* 4 years) is USD 26,112.28. This coordination cost should be included in the recurring labor cost of the six common services. See the Table 2.33 for the total direct cost for HR and Common Premises services including the above total annual coordination cost for four years and the cost for the one time and recurring monetary costs of HR and Common Premises Services.

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2.3.15. Cost Benefit Analysis (CBA) for New Common HR Services

Table2 33: Cost Benefit Analysis (CBA) for HR WG

A B C D E F G

COMMON SERVICE

LINES (OUTCOMES)


(OUTPUT)

TOTAL DIRECT COST (MONETARY + LABOR)

(USD)

TOTAL DIRECT BENEFIT

(MONETARY + LABOR)(USD)


TOTAL COSTD/C




HR and Common Premises Services

The UN Agencies in Ethiopia has established a common effective learning programme

89,012.28 148,000 1.66 2


657,032.28 514,800 0.78 3


55,912.28 149,700 2.68 1

Total 795,556.84 812,503

* A number less than one imply cost of developing is higher than benefit of the common service. This is due to a one-time consultancy fees for the development and uploading the HR Roster in the IKM. In the next cycle, the benefit will outweigh the cost and the ratio will be greater than one.

2.3.16. Summary of Cost-Benefit Analysis for all New Common Services in the BOS 2.0

Table 2 34: Cost Benefit Analysis (CBA) for all New Common Services in BOS2.0

A B C D E F G


PROPOSED NEW COMMON SERVICES (OUTPUT)

TOTAL DIRECT COST (MONETARY +LABOR)

(USD)


(USD)

PRIORITY RATIOTOTAL BENEFT/TOTAL

COST D/C


FINAL PRIORITIZATION OF SERVICES

(RANKING)

Common Procurement Services

UN Agencies in Ethiopia have established 28 inter-Agency LTAs for identified categories of goods and services

399,145.54 13,549,205 33 2


UN Agencies in Ethiopia has established a common banking service agreement with bank to get cost reduction and enhanced quality

46,065.13 75,200 1.63 6

UN Agencies, funds, programmes and specialized Agencies in Ethiopia have harmonized foreign exchange rate dealings to obtain the most suitable rate

118,565.13 16,000,000 134.95 1

HACT

UN Agencies have conducted joint micro-assessment for shared IPs 93,693.88 144,000 1.54 7

UN Agencies have conducted joint HACT audit for shared IPs 212,973.88 274,590 1.29 8


114,193.88 192,000 1.68 5

Human Resources and Common Premises Services

A common effective learning programme is established among UN Agencies in Ethiopia

75,268 148,000 1.97 4


649,688 514,800 0.79 9


48,568 149,700 3.08 3


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2.3.17. Prioritization of Common Services

Column E in the above CBA table will give us the priority ratio. It is computed by taking total benefit over total cost. The higher the ratio, the higher is the relative benefit of the common service which means the common service will reflect the higher avoidance. Besides, the UNCT in Ethiopia also considers urgency of the harmonization and

availability of financial resources and the final prioritization of the above common services is given under column G. Based on the figures under column G, the UNCT’s 1st priority is harmonizing foreign exchange rate dealing with banks, 2nd priority is establishing 28 Inter-Agency LTAs for identified categories of goods and services, 3rd priority is creating joint advertisement and joint recruitment of staff modality among UN Agencies in Ethiopia, and so on.

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BOS 2.0 Results Framework

3.1. BOS 2.0 Results Framework

The BOS 2.0 Results Framework captures the priorities of common business operations in Ethiopia for the period of 2016-2020 and is the basis for monitoring and evaluation of the BOS 2.0, annual work planning and development of the BOS 2.0 budgetary framework.

The BOS 2.0 Result Framework is comprised of six pillars representing the prioritized common services lines for common business operations for Ethiopia.

• Pillar 1: Common Procurement Service

• Pillar 2: Common Finance Services

• Pillar 3: Harmonized Approach to Cash Transfers

• Pillar 4: Common Human Resource Services

• Pillar 5: Common Business and Continuity Management & Information and Communications Technology Services

• Pillar 6: Host Country Agreement/ Legal

BOS Pillar 1: Common Procurement Services

Outcome statement: By 2020, capacities of procurement staff strengthened to undertake cost effective and quality enhanced procurement.

Output 1.1: UN Agencies in Ethiopia have established 28 Inter-Agency LTAs for identified categories of goods and services

Key performance Indicator

Baseline (2014) Target (2020)


0% >98%

Estimated cost saving with a target of 7% discount from additional joint LTAs

USD38.8 million (2014 combined procurement cost )

USD9,668,039

Estimated transaction cost saving by using additional joint LTAs

USD6,635,875 (total cost of separate LTAs developed & renewed by the individual UN Agencies)

USD3,881,166

Output 1.2: The capacity of UN procurement staff and suppliers/vendors is strengthened to improve procurement process


Baseline (2014)

Target (2020)

No of joint procurement training, workshops or seminars conducted

2 13

Satisfaction (%) based on annual satisfaction survey on the training, workshops or seminars conducted

0% >95%

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Output 1.3: A regional LTA database is developed and accessible to the BOS implementing countries in Southern and East Africa (Ethiopia, Kenya, Malawi, Uganda, Tanzania, and Rwanda)

Key performance Indicator Baseline (2014)

Target (2020)

A regional LTA database is established No Yes

No. of regional LTAs accessible on the regional LTA database 0 11

BOS Pillar 2: Common Finance Services

Outcome statement: By 2020, UN Agencies in Ethiopia have realized cost saving from financial transaction

Output 2.1: UN Agencies in Ethiopia established a common banking service agreement with banks to get cost reduction and enhanced quality service


Target (2020)

Estimated cost saving from use of common banking service USD0 USD75,200

% UN Agencies surveyed who are satisfied with the quality of the common banking service

0% >98%

Output 2.2: UN Agencies, Funds, Programmes and Specialized Agencies in Ethiopia harmonized foreign exchange rate dealings to obtain the most suitable rate


Baseline (2014)

Target (2020)

Estimated cost saving from harmonizing foreign currency exchange dealings

USD 0 USD 16,000,000

Number of UN Agencies participated for harmonizing foreign exchange dealings

0 13

Output 2.3: UN Agencies, Funds, Programmes and Specialized Agencies conducted a common VAT reclaim and reduced the loss of fund from uncollected VAT.


Target (2020)

A common VAT reclaim of UN Agencies is conducted on a Annual basis

No Yes

No. of UN Agencies participated in common VAT reclaim 0 13

BOS Pillar 3: Harmonized Approach to Cash Transfer/HACT

Outcome statement: By 2020, HACT framework is fully implemented by all UN Agencies providing funds and their Implementing Partners (IPs)

Output 3.1: UN Agencies have conducted joint micro-assessment of shared IPs through a lead agency.


Target (2020)

Estimated cost saving from conducting joint micro-assessment of shared IPs

USD0 USD144,000

No. of shared IPs assessed through joint micro-assessment

0 24

Output 3.2: UN Agencies have conducted joint HACT audit for shared IPs


Target (2020)

No. of shared IPs covered through joint HACT audit 0 24

Estimated transaction cost avoided by conducting joint HACT audits for IPs

USD0 USD274,590

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Output 3.3: The capacities of UN staff and IPs on HACT and Spot check performance is enhanced


Baseline (2014)

Target (2020)

Estimated cost saving from conducting joint capacity development training programmes for IPs

USD0 USD192,000

No. of IPs participated on joint capacity development training on HACT

0 24

No. of joint capacity development training provided on HACT and spot check

1-HACT 9 (5-HACT & 4 –Spot check

Output 3.4: UN Agencies have established a joint assurance plan for shared IPs


Baseline (2014)

Target (2020)

A joint assurance plan is established

No Yes

Number of joint spot checks conducted

0 4

Output 3.5: HACT database for shared IPs is regularly updated and further developed


Baseline (2014)

Target (2020)

No. of IPs uploaded on the HACT database

71 151

Output 3.6: The UNCT has conducted HACT Macro-Assessment together with Ministry of Finance and Economic Commission


Baseline (2014)

Target (2020)

Conducted a HACT Macro-assessment during the BOS 2.0

No Yes

BOS Pillar 4: Human Resources and Common Premises Services

Outcome statement: By 2020, recruitment & selection, learning & development aspects of the Human Resources function of UN Agencies in Ethiopia are harmonized

Output 4.1: Joint advertisement and joint recruitment staff modality is operationalized among UN Agencies in Ethiopia


Target (2020)

Estimated transaction cost avoided by using joint advertisement and recruitment staff modality

USD0 USD149,700

Number of staff recruited by joint recruitment modality

0 100

Output 4.2: A common effective learning programme is established among UN Agencies in Ethiopia


Target (2020)

Number of training conducted through joint learning programme

0 8

Estimated cost saving from conducting joint learning programme

USD0 USD148,000

No. of UN HR staff trained in professional certificate on HR

0 20

Output 4.3: HR Roster of Local Consultant and Support Service Staff is developed and accessible to all UN Agencies in Ethiopia


Target (2020)

Estimated transaction cost saving by using HR Roster of Consultants and support service staff

USD0 USD514,800

No. of consultants and support service staff recruited from the HR Roster of consultant

0 260


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Output 4.4: A reward framework is established to give recognition for individual showing outstanding achievement in the OMT and OMT WG’s work


Baseline (2014)

Target (2020)

A reward framework is established

No Yes

No. of individuals awarded using the reward framework

0 100

Output 4.5: The UN Agencies harmonize local consultancy rate and internship modalities


Baseline (2014)

Target (2020)

Harmonized local consultancy rate among UN Agencies

No Yes

Harmonized internship modality among UN Agencies

No Yes

BOS Pillar 5: Common Business Continuity Management & Information and Communications Technology (BCM & ICT) Services

Outcome statement: By 2020, the UNCT has strengthened organizational resilience and business continuity services.

Output 5.1: Information and Knowledge Management (IKM) platform is developed and accessible to all UN Agencies in Ethiopia


Baseline (2014)

Target (2020)

Established IKM and make accessible to all UN Agencies in Ethiopia

No Yes

Output 5.2: A joint Business Continuity Management Framework is developed and operationalized both in Addis Ababa and field offices


Baseline (2014)

Target (2020)

Joint BCM framework operationalized

No Yes

No. of operational business continuity framework in place for the UN premises in field

0 3

No. of workshops, or training conducted to enhance the capacity of UN staff in BCM

1 8

Output 5.3: A common/shared ICT infrastructure including shared network, common telephony and internet services is developed and operationalized for UN Agencies


Baseline (2014)

Target (2020)

Common office telephone system and directory established

No Yes

Established a common internet service

No Yes

Output 5.4: A common IT data center for identified critical services is established to avoid loss of critical data and ensure continuity of important activities.


Baseline (2014)

Target (2020)

Established a One UN IT data center

No Yes

No. of UN Agencies participated in a common IT data center

0 13

No. of ICT workshop conducted

0 8

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BOS Pillar 6: Host Country Agreement/ Legal

Outcome statement: By 2020, all UN Agencies in Ethiopia have a common Host Country Agreement with supplemental agreement

Output 6.1. The awareness of federal & regional government officials on the UN, its working methods as well as its privileges and immunities is enhanced


Baseline (2014)

Target (2020)

No. of sensitization workshops conducted on immunities and privileges

5 17

No. of regions that received information materials on the UN’s working methods and legal status (local language)

0 8

No. of federal and regional governments agencies that participated in the sensitization workshop on UN’s working methods and legal status

5 regional agencies

11 regional and 6

federal agencies

Output 6.2: Supplemental Agreements of UN Agencies, Funds and Programmes are prepared


Baseline (2014)

Target (2020)

Prepared supplemental agreement to UN Agencies

No Yes

Provided technical support on UN privileges and immunities to OMT/Agencies

No Yes

Output 6.3: The knowledge of UN officials and experts on the privileges and immunities of the UN and its staff is enhanced


Baseline (2014)

Target (2020)

Organized regular briefing to UN staffs on a Annual basis

No Yes

Conducted consultative seminar for UN Agencies HR managers on staff immunity and privileges

No Yes

No. of UN staff members that participated in the sensitization workshop on legal status of UN staff

0 200

Output 6.4: UNCT availed legal support in host country negotiation and deliberations on tax, customs, immigrations, communications and other legal affairs.


Baseline (2014)

Target (2020)

Provided support to the UNCT in the negotiation to obtain suitable banking service fee as well as VAT exemption

No Yes

No. of retreat conducted with key government counterparts

0 2


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3.2. BOS 2.0 Results Alignment with SDGs and UNDAF

UNDAF Pillars

The current UNDAF for the period of 2016-2020 is the fourth framework developed jointly by the Federal Democratic Republic of Ethiopia (FDRE) and the United Nations Country Team (UNCT) in Ethiopia. The framework is fully aligned to the five year national development plan for Ethiopia known as the Growth and Transformation Plan (GTP II).

This UNDAF document has five pillars listed as follows:

• Pillar 1: Inclusive growth and structural transformation

• Pillar 2: Resilience and green economy

• Pillar 3: Investing in human capital and expanded access to quality and equitable basic social services

• Pillar 4: Good governance, participation and capacity development

• Pillar 5: Equality and Empowerment

The Ethiopia UNDF 2016-2022 align with the SDGs and targets. The linkages between the UNDAF and the BOS 2.0 therefore contributing to national attainment of the SDG through increased efficiency in programme implementation through the UNDAF.

BOS 2.0 Pillars

The BOS 2.0 document is the second medium-term strategic document prepared with the aim to reinforce the linkages between UN Programme (UNDAF) and UN Operations. It enhances efficient and effective programme delivery. It helps to advance the harmonization of Business Operations at the country level. The document has the following main parts: Stock taking analysis, needs and requirement analysis with key performance indicators, cost-benefit analysis, results matrix, monitoring and evaluation tool, governance structure and accountability framework, and budgetary framework. The result framework lists the BOS 2.0 outcomes, outputs, key performance indicators to track /measure progress at outcome and output levels, including baselines and targets and data source. Besides, the document shows the linkage between the BOS 2.0 pillars, SDGs and UNDAF pillars. This BOS 2.0 document has six pillars listed as follows:

BOS 2.0 Pillar 1: Common Procurement

BOS 2.0 Pillar 2: Common Finance

BOS 2.0 Pillar 3: Harmonized Approach to Cash Transfers/HACT

BOS 2.0 Pillar 4: Human Resource and Common Premises

BOS 2.0 Pillar 5: Business Continuity Management & Information and Communications Technology

BOS 2.0 Pillar 6: Host Country Agreement/ Legal

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Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs) were adopted in September 2015 and set out to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda.

Goals, targets, and their indicators serve as a means to help countries localize strategies and allocate resources. They serve as a report card to measure progress towards sustainable development and to help ensure the accountability of all stakeholders for achieving the SDGs. The 17 SDGs have 169 targets (see Annex 6).

SDG 8; SDG 10; SDG 16

SDG 1;SDG 4;SDG 8;SDG 17

SDG 1; SDG 8; SDG 17

SDG 1;SDG 9;SDG 11;SDG 13;SDG 17

UNDAF Pillar 1;UNDAF Pillar 3;UNDAF Pillar 4;UNDAF Pillar 5;

F F F

UNDA Pillar 1; UNDA Pillar 4; UNDA Pillar 5

UNDAF Pillar 1 ; UNDAF Pillar 2 ; UNDAF Pillar 4 ; UNDAF Pillar 5

BOS 2.0

UNDAF Pillar 1; UNDAF Pillar 3; UNDAF Pillar 4;


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Monitoring and Evaluation Plan

4.1. Monitoring and Evaluation

The BOS 2.0 Monitoring and Evaluation (M&E) supports the OMT’s planning, monitoring, evaluation and reporting of the progress of common business operations in Ethiopia. The BOS 2.0 Results Framework is the reference framework for the BOS 2.0 M&E along with Annual work plans prepared at the commencement of each annual cycle.

Annual Work Plans are developed at the start of each annual cycle of implementation of the BOS2.0. Annual work plans are based on the outcomes and outputs within the BOS 2.0 Results Framework and detail the activities that will be undertaken to achieve the desired output in that year.

Annual Monitoring is undertaken to monitor and report against annual targets. The BOS 2.0 Results Monitoring and Evaluation tool is utilized for this purpose (see Annex 2 & 3) allowing the OMT Ethiopia to enter the BOS 2.0 results to UNInfo a global tool for monitoring both UNDAF and the BOS 2.0 results.

BOS 2.0 Reporting has two elements: 1) BOS 2.0 annual achievements contributing to the One UN Country Report prepared annually by the UNCT to outline the UNDAF, BOS 2.0 and UN Communication Annual Results; 2) BOS 2.0 detailed monitoring report against targets for submission to the High Level Steering Committee (HLSC).

The OMT Capacity Development may include the coordination of learning sessions in the RBM for the OMT and OMT WGs members.

An evaluation of the BOS 2.0 will be undertaken in 2021 to assess the efficiency, effectiveness, relevance and sustainability of the BOS 2.0 in accordance with UN principles of conducting evaluation. The results of the evaluation contribute to the stock take of the next generation of the BOS. The OMT will maintain strong links with the PMT to take not of any BOS related matters arising from the UNDAF annual monitoring or independent evaluation.

4.2. Information and Knowledge Management (IKM) platform

The IKM platform is one of the sources of data for the OMT when conducting the BOS 2.0 M&E. The IKM platform offers a portal for UN staff from all UN Agencies working in the country, both resident and non-resident, for interaction and exchange of ideas and knowledge. It is a tool that can contribute to optimization of the use of staff resources and time, and thereby improve quality and

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the cost of the organization’s outputs. It is a tool which can be used to share information within the UNCT, with relevant partners, stakeholders including the OMT, PMT, UN Communication Group (UNCG) and other Delivering as One (DaO) pillars, Working Groups and Task Forces. The main functions of the IKM platform are:

A. Storage and Retrieval of Documents: The IKM platform can act as always accessible repository of day-to-day information, including for example, Meeting Attendance Dashboards, Meeting Minutes, UNDAF and BOS documents, LTAs’ database and LTA M&E tool for Common Procurement, Micro-Assessed IPs database on HACT, HR Roster for Local Consultants and Support Service Staff on Human Resources, etc.

B. Virtual Work Space: The IKM platform can facilitate joint UN work with features to assist as common work rooms, discussion forums, and calendars. These spaces can be structured by UN Agencies, by WGs and by other DaO pillars. The

IKM platform allows editing of common work papers. For example the current ICT system allows for multiple users to work on the same document, e.g., the UNDAF, at the same time and enable easy tracking of changes, which in turn makes it easier to compile different inputs to a document and lessen the risk that of losing contributions as well as not having the latest updated version.

C. Internal Communication to Strengthen Staff Involvement and Ownership of DaO: The IKM platform provides a tool for internal communication on staff issues. Not only for management to address or inform staff on change of regulations or changes in management but for staff to feel involved and have possibilities to influence and participate in some of the decision making. For example, Staff surveys can be easily done via the IKM platform and in different ways allows staff to comment and pose questions to management which is increasing opportunities for participation in the development of the organization.


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Governance Structures and Accountability Mechanisms

5.1. Governance and accountability structures for the BOS 2.0

The BOS 2.0 is a vital element of the One Operations component of DaO reform in Ethiopia. Accordingly, it provides specific, measurable and achievable targets to ensure that UN Agencies operate in a complementary and harmonized manner. To guarantee its success, the BOS 2.0 will be governed through the following coordination mechanisms to ensure efficient governance of the BOS and accountability for the BOS 2.0 results.

Figure 5.1. Governance Structure of BOS 2.0

Chapter 5

High Level SteeringCommittee

UN Country Team

OperationsManagement

Team

CommonProcurement

Working Group

Common FinanceWorking Group

HSCTWorking

Group

Human ResourcesWorking Group

Business ContunityManagement & ICT

Working Group

Host CountryAgreement/ Legal

Working Group

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High -Level Steering Committee

The High Level Steering Committee (HLSC) is comprised of the host government, representatives of UN Agencies and development partners, the HLSC provides strategic direction and oversight for successful implementation of DaO in Ethiopia. Accordingly, a progress report on the BOS implementation will be provided on an annual basis to the HLSC for review and endorsement.

United Nations Country Team

The United Nations Country Team (UNCT) brings together representatives of the UN Agencies working in Ethiopia and is the ultimate decision-making body for all issues in the field of common business operations. Under the leadership of the UN Resident and Humanitarian Coordinator, the UNCT will work to ensure the successful adoption, implementation, and monitoring and evaluation of the BOS 2.0. To this end, the UNCT reviews and endorses the OMT Annual Work plans, and mobilizes the resources required to implement the BOS 2.0.

The generic responsibilities of the UNCT for the BOS include:

• Ultimate decision making for all matters related to common business operations

• Responsible for ensuring the alignment between the BOS and UNDAF

• Responsible for finalization of the BOS and the achievement and reporting on agreed results

• Responsible for outlining the medium-term vision for common business operations and provides guidance

to the OMT with regards to the operationalization of the BOS

• Final decision making on issues that cannot be resolved at the OMT level

• Final endorsement of agreed annual work plans and budgets

• Endorsement of the BOS Roadmap and submission to the United Nations Development Group (UNDG)/ UN Development Operations Coordination Office (DOCO)

• Final validation of the BOS document and submission to UNDG/UN DOCO

Operations Management Team

The Operations Management Team (OMT) is comprised of the Operations Managers and/or Senior Administrative Officers of UN Agencies and is responsible for the day-to-day management of the UNCT’s business operations, including the adoption and implementation of the BOS 2.0. It provides the UNCT with recommendations to improve the quality, timeliness and cost-effectiveness of the operational support to programme delivery. To facilitate its implementation, the OMT translates the BOS into Annual Work plans and budgets and prepares annual monitoring reports for presentation at the HLSC.

The OMT Chairpersons lead the development, adoption and implementation of the BOS, as well as the OMT annual work planning. Hence, they will organize meetings to discuss, and coordinate with member agencies to ensure smooth running of the OMT, and successful implementation of its work plan.


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The OMT establishes on an annual basis Working Groups comprised of technical area experts to implement the agreed activities of the OMT annual work plan. Chairpersons will also be appointed to help coordinate the contributions of these Working Groups.

The BOS 2.0 Results Framework and annual work plans designate lead agencies for each planned common service. Lead agencies are accountable to the OMT Chair and UNCT for the successful and timely implementation of activities, and the achievement of the BOS 2.0 outcomes and outputs. Thus, lead agencies are expected to make the necessary arrangements for the implementation of the BOS, and hold discussions with the OMT Working Groups to finalize them. Where funding is available, they will liaise with the OMT Chairpersons and the RCO for the procurement of the agreed goods and services, including technical consultants.

Please see Annex 4 for the OMT and technical working groups Terms of Reference (ToR).

The generic responsibilities of the OMT for the BOS are:

• Management and coordination of the development and implementation of the BOS

• Oversight of the annual monitoring of the BOS to ensure that service delivery is in line with the agreed KPIs

• Review and endorsement of Annual work plans and budgets of individual BOS task teams

• Regular reporting (by the OMT Chairpersons) to the UNCT7 on progress and issues regarding the implementation of the BOS. Progress updates based on the KPIs and targets reflected in the BOS Results Framework;

• Implementation of required resource mobilization strategies and the reporting of resource mobilization opportunities and issue to the UNCT

• Provides, or coordinates provision of M&E guidance to the OMT WGs for quality monitoring of the BOS and the development of Annual work plans (inclusive of annual targets)

• Overseas the work of the OMT WGs (Technical WGs)

• Overseas the work of any time bound the BOS Committee8

The generic responsibilities of the OMT WGs are:

• Participate in the BOS development through provision of data, BOS planning, identification of risks and limitations and development of the BOS Results Framework.

• Responsibility for the annual work planning, budgeting, implementation and monitoring of their assigned BOS Outcome Area,

7 It is recommended that the OMT chairpersons attend the UNCT meetings to provide a regular update on common business operations

8 The BOS Committee is generally time bound with the responsibility of developing and finalizing the BOS on behalf of the OMT. In some cases, the BOS Committee membership includes programme staff

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• Provision of specialised technical expertise

• Highlighting of any resource mobilization opportunities for the BOS to the OMT

• Regular reporting to the OMT (by the task team/working group chairperson) on progress against the relevant annual work plan, highlighting any challenges and bottlenecks faced and proposed solutions

• Create links with programme staff working to increase dialogue and collaboration around identification of common business operations needs linked to the UNDAF implementation.

UN Resident and Humanitarian Coordinator’s Office

The UN Resident and Humanitarian Coordinator’s Office (RCO) provides coordination support to the OMT including assistance with the preparation and monitoring of the BOS 2.0, and associated the OMT Annual Work Plans. The procurement

of the services and consultants required by the OMT will be handled by the UNDP through the RCO. A repository of all OMT and OMT WGs documents is maintained by the RCO for knowledge management and audit purposes.

The generic responsibilities of the RCO are:

• Support to the OMT in coordination of the BOS development process

• Support for coordination of annual work planning and budgeting and presentation to the UNCT for approval

• Advising UNCT agenda to ensure common business operations related matters are reported by the OMT

• Assisting with the BOS resource mobilisation as required

• Advice to the OMT and UNCT regarding latest UNDG/UN DOCO guidance related to common business operations

• Provision of M&E expertise in support of the BOS monitoring


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BOS 2.0 Common Budgetary Framework

6.1. Resource Requirements, Cost Sharing Arrangements and the Common Budgetary Framework

The OMT and OMT WGs in Ethiopia confirm a total budget of USD 1,780,930 to implement agreed common business operations within the BOS2.0 cycle.

Of the total estimated budget for the BOS 2.0 USD 643,180 is confirmed as available to support the implementation of the BOS 2.0. The budget gap of USD 1,137,750 needs to be mobilized. The UNCT, under the leadership of the UN Resident Coordinator (RC) and advised by the OMT is collectively responsible for resource mobilization to support the full implementation of the BOS 2.0.

Table 6 1: Common Budgetary Framework

BOS2.0 Cost per outcome in USD

Funded Amount in USD Budget Gap in USD

Pillar 1: Common Procurement Services 375,180 231,180 144,000

Pillar 2: Common Finance Services 75,500 75,500

Pillar 3: HACT 169,500 7,500 162,000

Pillar 4: Human Resources and Common Premises Services 62,900 23,200 39,700

Pillar 5: Common BCM & ICT Services 220,000 29,000 191,000

Pillar 6: HCA/ Legal services 42,250 2,500 39,750

OMT Support to the Coordination of Common Operations 835,600 349,800 485,800

Total 1,780,930 643,180 1,137,750

For the BOS 2.0 to achieve the expected savings projected at USD 31,047,495, an investment of financial resources is needed. The total budget for the BOS 2.0 2016-2020 is calculated as USD 1,780,930 which covers all six pillars of the BOS 2.0, plus OMT Coordination Costs. The BOS 2.0 financial plan is comprised of three elements: 1). the total budget, which reflects the total resource needed to implement the BOS2.0 over the UNDAF cycle; 2). the Investment Plan outlining the total budget breakdown across the four years of the BOS 2.0; and 3). the Investment Financing Plan detailing the resource mobilization for BOS2.0 across two financing streams of

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UN Agency contributions and UNDG / DOCO. The Investment Financing Plan anticipates a fully funded the BOS 2.0 with USD 1,037,750 to be provided through UN Agency contributions and USD 100, 000 from UNDG (DOCO).

Table 6 2: Total Budget for the BOS2.0 2016-2020, Investment Plan and Investment Financing Plan

BOS 2.0 COMMON SERVICES LINES

TOTAL BUDGET BOS2.0 2016-2020 (USD)

INVESTMENT PLAN (USD) INVESTMENT FINANCING PLAN (USD)

Financed by :

YEAR 1 YEAR 2 YEAR 3 YEAR 4

Funded amount in USD Budget Gap in USD

Received from UN Agency

contribution

Received from UNDG

(DOCO

Expect from UN Agencies contribution

Expect from

UNDG(DOCO)

Pillar 1: Common Procurement Services

375,180 181,680 70,500 76,500 46,500 90,000 141,180 144,000 0

Pillar 2: Common Finance Services 75,500 0 38,500 0 37,000 0 0 75,500 0

Pillar 3: HACT 169,500 7,500 54,000 54,000 54,000 7,500 0 162,000 0

Pillar 4: Human Resources and Common Premises Services

62,900 22,200 12,900 4,900 22,900 23,200 0 39,700 0

Pillar 5: Common BCM & ICT Services 220,000 29,000 141,000 25,000 25,000 29,000 91,000 100,000

Pillar 6: HCA/ Legal 42,250 2,500 14,750 16,250 8,750 2,500 0 39,750 0

OMT Support/Coordination

835,600 163,000 209,000 231,800 231,800 292,400 57,400 485,800 0

TOTAL 1,780,930 405,880 540,650 408,450 425,950 444,600 198,580 1,037,750 100,000


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Annex 1: Results of Stock Taking AnalysisTable A 1: Stock Taking Analysis

Stock take of current service

Common Service Line(outcome)

Common Service(output)

Managing Entity (Service Manager)

Clients (Agencies using the Services)

Key Performance Indicators (KPIs)• Indicator• Baseline• Target

Performance Ranking against KPIs• Green = target met• Yellow = target not

met but on progress• Red = target not met

and no progress

Modality (Outsourced/in-house)

Recommended Action• Continue as is• Scale up• Scale down• Discontinue• Modify

Common Procurement

The UNCT has improved the

quality and cost effectiveness of its procurement

activities

UNOPSWFP

UNECA, WFP, FAO, UNHCR, UNICEF,

UNDP, UNWOMEN, UNCDF, UNOPS, UNOCHA, UNDP

RSC, UNESCO, UNFPA CO, UNFPA LO, UNHCR AUECA, WHO, ILO, UNIDO,

UNOAU

1. Estimated labor cost saving• Baseline = $ 14,416,114• Target = $ 2, 423,640

In house Scale up

2. Estimated cost saving• Baseline = $ 112,691,616• Target = $ 9,964,527

In house Scale up

3. No. of joint LTAs in place• Baseline = 1• Target = 8

In house Scale up

4. Percentage of UN Staff satisfied with the quality of existing common services• Baseline = 0 %• Target = >70 %

Data not available

HACT

The UN Agencies have improved

working relations with IPs

UNICEFUNICEF, UNDP,

UNFPA, UNWOMEN, UNESCO,

1. No. of IPs included in joint assurance and capacity development framework • Baseline = 0• Target = 250

In house Scale up

2. No. of IPs that received joint capacity development support on HACT modalities, monitoring and financial management• Baseline = 0• Target = 100

In house Scale up

3. No. of jointly audited IPs • Baseline = 0• Target = 250

Outsourced Scale up

Business Continuity Management

The UNCT has strengthened organizational

resilience and business

continuity service

UNECAUNDSS

UNECA, UNDSS, OCHA, UNDP

1. Business continuity framework for the UN premises in Addis Ababa operationalized• Baseline = No• Target = Yes

Outsourced Scale up

2. No. of operational business continuity framework in place for the UN premises in the field• Baseline = 0• Target = 3

Outsourced Scale up

Common Human Resources

The UNCT has enhanced its human resource management capacity to better address programme and staff needs

UNICEFUNHCR

1. Estimated labor cost saving through the use of Roster of consultants• Baseline = $2, 123,200• Target = $988, 800

Outsourced Scale up

2. Technical note on harmonized R & R policies and procedures prepared, and shared with ICSC for endorsement• Baseline = No• Target = Yes

In house Scale up

3. Rates for local consultants harmonized• Baseline = No• Target = Yes

Outsourced Scale up

4. No. of field locations assessed for staff issues and challenges through visits and surveys• Baseline = 0• Target = 3

In house Scale up

BOS 2.0 2016-2020

78

Information and Communications Technologies

The UNCT has reinforced the quality and cost effectiveness of its information and communication infrastructure

WHOUNECA WHO, UNECA, WFP

1. The UNCT knowledge management platform launched and accessible by all UN Agencies• Baseline = No• Target = Yes

Outsourced Continue as is

2. The ICT Business Case on network consolidation is finalized and endorsed by the UNCT• Baseline = No• Target = Yes

Outsourced Continue as is

3. The percentage of 13 UN Agencies’ network uptime• Baseline = 98 %• Target = >99 %

Data not available

HCA/ Legal

The UN Agencies and staff have strengthened privileges and immunities

OCHAUNECA

1. Technical and administration support provided to high level negotiations with government on host country agreement of UN Agencies• Baseline = No• Target = Yes

In house Scale up

2. No of regions that received information materials on the UN’s working methods and legal status (local language)• Baseline = 0• Target = 3

Outsourced Scale up

3. No. of federal and regional government agencies that participated in the sensitization workshop on UN’s working methods and legal status• Baseline = 0• Target = 12 regional & 4

federal agencies

In house Scale up

Support to the coordination of common operations

The UNCT’s capacity to coordinate inter-agency operations supported

UNECAUNDSS

UNDP, UNECA, UNDSS,

1. No. of staff who participated in a capacity development workshop on RBM of operations• Baseline = 0• Target = 80

Outsourced Scale up

2. No. of staff who received capacity development support on International Public Sector Accounting Principles (IPSAS)• Baseline = 0• Target = 40

Outsourced Scale up

3. No. of OMT annual reports prepared and shared with the UNCT• Baseline = 0• Target = 2

Outsourced Scale up


79

Table A 2: Staff Pro-Forma Cost

STAFF PROFORMA COST

Grade Level Staff Cost–Annually (USD)

Staff Cost–Monthly (USD)

Staff Cost- Daily (USD)

Staff Cost–Hourly (USD)

Staff Cost per Minute (USD)

D1/P6 301,081.83 25,090.15 1,153.57 153.81 2.56

D2/P7 323,907.22 26,992.27 1,241.02 165.47 2.76

P5 262,129.86 21,844.15 1,004.33 133.91 2.23

P4 227,257.86 18,938.16 870.72 116.10 1.93

P3 190,905.53 15,908.79 731.44 97.53 1.63

P2 169,037.46 14,086.46 647.65 86.35 1.44

P1 77,139.16 6,428.26 295.55 39.41 0.66

NOD 41,646.94 3,470.58 159.57 21.28 0.35

NOC 35,900.12 2,991.68 137.55 18.34 0.31

NOB 30,947.33 2,578.94 118.57 15.81 0.26

NOA 27,392.46 2,282.71 104.95 13.99 0.23

G7 30,190.24 2,515.85 115.67 15.42 0.26

G6 26,248.33 2,187.36 100.57 13.41 0.22

G5 22,628.77 1,885.73 86.70 11.56 0.19

G4 18,099.41 1,508.28 69.35 9.25 0.15

G3 14,371.86 1,197.66 55.06 7.34 0.12

G2 11,225.21 935.43 43.01 5.73 0.10

G1 8,698.72 724.89 33.33 4.44 0.07

Table A 3: Bank Service Charge paid by UN Agencies (2014)S.N Name of Agency Amount paid in USD

1 FAO 123,310.83

2 ILO 57,787.84

3 IOM 1,207.64

4 UNDP 1,026.93

5 UNECA 964.17

6 UNESCO 56.65

7 UNICEF 818.81

8 UNOPS 158.14

9 WFP 3183.5

Total 188,514.51

Table A 4: Number of Staff Recruited and Training Cost of UN Agencies (2014)S.N UN Agency No. of consultants recruited in

2014No. of staff recruited in

2014Training cost incurred in

USD in 2014Current staff

1 FAO 171

2 ILO 10 1,561 49

3 IOM 4 89 44,024 255

4 UNAIDs 8 16

5 UNDP 125 43 28,905.91 112

6 UNHCR 5 135 2,500 536

7 WHO 120 11 1,237 155

8 UNESCO 7 4 43

9 UNICEF 64 71 292,400 365

Total 325 371 370,627 1,702

BOS 2.0 2016-2020

80

Table A 5: List of UN Agencies in Ethiopia

No UN Agency

1 FAO Food and Agriculture Organization

2 IFAD International Fund for Agricultural Development

3 ILO International Labour Organization

4 ILRI International Livestock Research Institute

5 IMF International Monetary Fund

6 IOM International Organization for Migration

7 ITC International Trade Centre

8 ITU International Telecommunication Union

9 UNAIDS United Nations Programme on HIV and AIDS

10 UNCDF United Nations Capital Development Fund

11 UNCTAD United Nations Conference on Trade and Development

12 UNDP United Nations Development Programme

13 UNECA United Nations Economic Commission for Africa

14 UNEP United Nations Environment Programme

15 UNESCO United Nations Educational, Scientific and Cultural Organization

16 UNFPA United Nations Population Funds

17 UNHABITAT United Nations Human Settlements Programme

18 UNHCR United Nations High Commissioner for Refugees

19 UNICEF United Nations Children’s Fund

20 UNIDO United Nations Industrial Development Organization

21 UNOAU United Nations Office to the African Union

22 UNOCHA United Nations Office for the Coordination of Humanitarian Affairs

23 UNODC United Nations Office on Drugs and Crime

24 UNOHCHR United Nations Office of the High Commissioner for Human Rights

25 UNOPS United Nations Office for Project Services

26 UN WOMEN United Nations Entity for Gender Equality and the Empowerment of Women

27 WB World Bank

28 WFP World Food Programme

29 WHO World Health Organization


81

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BOS 2.0 2016-2020

82

Table A 7: Procurement Spending of UN Agencies by Number of Transaction in USD (2014)

S. No. Procurement Category Total Number of Transaction

Total value in USD

1 IT Equipment including Computers, Printer and Toners and Technical Support 275 4,342,490

2 Spare Parts including tires 31 247,177

3 Stationery including Printing Paper 223 2,551,658

4 Uniform / clothing 52 484,149

5 Electrical equipment 74 2,946,731

6 Office Equipment including Furniture 189 1,858,324

7 Catering Service 14 715,991.83

8 Hotel and Conference Facilities 183 2,182,936

9 Communication and production (video) 76 1,001,486

10 Translations/ Interpretation 51 154,545

11 Custom Clearance (Company) 45 429,779

12 Advertising Services 73 364,191

13 Generator & Electro Mechanical Services 43 2,127,321

14 Maintenance (IT Equipment/ photocopier) 24 155,279

15 Vehicle Maintenance 158 852,143

16 Insurance 41 1,337,170

17 Postal and Currier Services including Cargo 39 27,702

18 Cleaning services (Company) 95 932,853

19 Temporary Driving Services (Company) 16 268,173

20 Messenger Services (Company) 66 277,828

21 Security Guard Services 81 1,438,364

22 Transportation Rental Trucks 13 1,296,767

23 Transportation Rental Bus 16 201,245

24 Transportation Rental Car 96 3,407,025

25 Printing Services 114 1,100,642

26 Warehouse/ Storage Rental 38 703,118

27 Event Management 7 79,866.85

28Technical Consultancies and Training Services(includes: surveys, Micro-assessment, M&E, design of towns, inventory counting, technical assistance towards HR and Finance, inspection services )

111 7,336,844

Total 2,244 38,821,798.7


83

Annex 2: BOS 2016-2020 Results FrameworkSummary BOS 2016-2020 Results Framework:

BOS PILLAR 1. COMMON PROCUREMENT

LEAD ENTITY COMMON PROCUREMENT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, UNAIDs, UNDSS, UNESCO, UNHCR, UNOAU, UNODC, UNOHCHR, UNOPS

OUTCOME BUDGET USD 375,180

OUTCOME BUDGET GAP USD 144,000

Outcome 1

By 2020, capacities of procurement staff strengthened to undertake cost effective and quality enhanced procurement

Output 1.1UN Agencies in Ethiopia has established 28 inter-Agency LTAs for identified categories of goods and services

Output 1.2The capacity of UN procurement staff and suppliers/vendors is strengthened to improve procurement process

Output 1.3A regional LTA database is developed and accessible to the BOS implementing countries in Sothern and East Africa

1.1• Identify list of categories of goods and services for

inter-agency LTAs• Assign lead agency to the inter-agency LTAs and sign

the LTAs on behalf of other Agencies• Upload active inter-agency LTAs on the Information

Knowledge Management (IKM) plat form• Monitor the expiry date of LTAs on IKM1.2• Organize workshop/seminar and training• Conduct a business seminar for local and regional

vendor1.3. • Discuss with UNCT/OMT on establishing of CPSU• Hire experts• Create regional LTA database and make accessible to

the BOS countries in Southern and East Africa

BOS PILLAR 2. COMMON FINANCE SERVICES

LEAD ENTITY COMMON FINANCE WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, WFP, UNWOMEN,WHO, UNECA, UNFPA, UNHCR, UNAIDs, UNESCO, UNOPS, IOM



Outcome 2By 2020, UN Agencies in Ethiopia have realized cost saving from financial transaction

Output 2.1: UN Agencies in Ethiopia has established a common banking service agreement with banks to get cost reduction and enhanced quality service

Output 2.2: UN Agencies, funds, programmes and specialized agencies in Ethiopia have harmonized foreign exchange rate dealings to obtain the most suitable rate

Output 2.3: The UN Agencies, funds, programmes and specialized agencies have conducted a common VAT reclaim and reduced the loss of fund from uncollected VAT

2.1.• Issue an RFP for banking survey• Sign and conclude an agreement with banks for all UN

Agencies 2.2.

• Analyze and align the HOA agreement in respect to financial privileges

• Negotiate on the revision of new directives of NBE (National Bank of Ethiopia) and adapt

• Sign an agreement

2.3.• Identify the cause for uncollected VAT • Collect VAT reclaim of different UN Agencies• Reclaim of uncollected VAT

BOS 2.0 2016-2020

84

BOS PILLAR 3. HARMONIZED APPROACH TO CASH TRANSFERS (HACT)

LEAD ENTITY HACT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,UNESCO, UNFPA, UNAIDs, UNECA, UNHCR, UNOPS, WHO



Outcome 3By 2020, HACT framework is fully implemented by all UN Agencies providing funds and their Implementing Partners (IPs)

Output 3.1: UN Agencies have conducted joint micro-assessment for shared IPs

Output 3.2: UN Agencies have conducted joint HACT audit for shared IPs

Output 3.3: The capacities of UN staff and IPs on HACT and Spot check performance is enhanced

Output 3.4:UN Agencies have established a joint assurance plan for shared IPs

Output 3.5:HACT database for shared IPs is regularly updated and further developed

Output 3.6:UNCT has conducted HACT Macro-Assessment together with Ministry of Finance and Economic Commission (MoFEC)

3.1.• Identify IPs for joint micro-assessment• Assign a lead agency• Conduct the joint micro-assessment of shared IPs.

3.2.• Advertise to invite audit firms• select audit firm• Sign a joint LTA• Select IPs for joint audit• Conduct the joint audit• Prepare report and share to Agencies

3.3• Identify capacity gap of IPs on HACT• Conduct capacity development training on HACT

3.4.• Develop a joint assurance plan to shared IPs• Identify IPs for joint spot check• Conduct spot check

3.5.• Develop a HACT database• Upload full information about IP on the HACT database

3.6. • Provide comment on the PIM• Review the HACT report

BOS PILLAR 4. HUMAN RESOURCES AND COMMON PREMISES

LEAD ENTITY HUMAN RESOURCE AND COMMON PREMISES WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA,FAO,IOM,UNAIDs, UNESCO, UNHCR, UNOCHA, UNOPS



Outcome 4By 2020, recruitment & selection, learning & development aspects of the Human Resources function of UN Agencies in Ethiopia are harmonized

Output 4.1: Joint advertisement and joint recruitment staff modality is operationalized among UN Agencies in Ethiopia

Output 4.2: A common effective learning programme is established and operationalized among UN Agencies in Ethiopia

Output 4.3: HR Roster of Local Consultant and Support Service Staff is developed and accessible to all UN Agencies in Ethiopia

Output 4.4: A reward framework is established to give recognition for individuals showing outstanding achievement in the OMT and OMT WG’s work

Output 4.5: The UN Agencies, funds, programmes and specialized agencies harmonized Local Consultancy Rate and internship modality

4.1• Develop TOR for joint/inter-agency recruitment• Develop joint recruitment SOP or guidelines• Harmonize job descriptions and grade levels• Identify list of vacancy• Post vacancy announcement• Conduct the recruitment jointly4.2. • Develop calendar for staff development program• Identify list of trainings• Develop joint training manual• Identify the participants• Select the venue• Conduct the joint learning programme• Conduct staff satisfaction survey4.3. • Collect CVs of local consultant• Develop HR Roster• Upload the CVs on IKM• Update the CVs regularly• Recruit local consultants and support service staffs from the

UN Roster4.4. • Develop a recognition and award framework• Identify list of candidates• Get approval from OMT• Organize award ceremony4.5. • Collect data on local consultancy rate and internship modality

of UN Agencies• Conduct review of consultant rate across UN system and

Identify the difference• Harmonize both local consultancy and internship modality


85

BOS PILLAR 5 COMMON BCM & ICT SERVICES

LEAD ENTITY COMMON BCM & ICT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA



Outcome 5By 2020, the UNCT has strengthened organizational resilience and business continuity services

Output 5.1: Information and Knowledge Management (IKM) platform is developed and accessible to all UN Agencies in Ethiopia

Output 5.2:A joint/harmonized Business Continuity Management Framework is developed and operationalized both in Addis Ababa and field offices

Output 5.3: A common/shared ICT infrastructure including shared network, common telephony and internet service is developed and operationalized for UN Agencies

Output 5.4: A common IT data center for identified critical services is established to avoid loss of critical data and ensure continuity of important activities

5.1.• Provide training on IKM • Make accessible to all UN Agencies5.2• Purchasing the BCM software • Hire consultants for Business Continuity and Information

Technology Disaster Recovery assessment• Prepare MoUs and sign on Business continuity to formalize

alternate recovery site and concentration point5.3.• Purchasing of equipment related top Office-in-a box to the

alternate recovery site

BOS PILLAR 6 HOST COUNTRY AGREEMENT /LEGAL

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, IOM, ITU, UNAIDs, UNESCO, UNHCR, UNOHCHR, UNOPS, WFP



Outcome 6By 2020, all UN Agencies, Funds and Programmes in Ethiopia have common Host Country Agreement with supplemental agreement

Output 6.1.The awareness of federal & regional government officials on the UN, its working methods as well as its privileges and immunities is enhanced

Output 6.2.Supplemental Agreements of UN Agencies, Funds and Programmes are prepared

Output 6.3.The knowledge of UN officials and experts on the privileges and immunities of the UN and its staff is enhanced

Output 6.4: UNCT availed legal support in host country negotiation and deliberations on tax, customs, immigrations, communications and other legal affairs.

6.1. • Prepare sensitization document on immunities and privileges• Identify the participants• Translate into local languages• Conduct the sensitization workshop6.2.• Support the management with finalizing the proposed draft

supplemental agreement6.3.• In collaboration with HR WG, provide regular briefing to UN

staffs6.4.• Support the Finance WG during negotiation with banks

BOS 2.0 2016-2020

86

Annex 3: Detail BOS 2016-2020 Results Framework: BOS OUTCOME AREA 1: COMMON PROCUREMENT

LEAD ENTITY COMMON PROCUREMENT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, UNAIDs, UNDSS, UNESCO, UNHCR, UNOAU, UNODC, UNOHCHR, UNOPS



OUTCOME 1 By 2020, capacities of procurement staff strengthened to undertake cost effective and quality enhanced procurement

OUTCOME INDICATORS COST QUALITY

SOURCE OF DATA BASELINE Total Target

in BOS 2.0 RISK AND ASSUMPTIONS

Cost

Percentage of UN spending channeled through joint procurement arrangement

(32 joint LTAs-including 4 joint LTAs during baseline)

IKM,

CP WG report

29% of total spending channeled through joint LTAs (Printing, Driver’s uniform & Travel)

100%

Assumptions

• All agencies procure using the joint LTAs

• No fund shortageQuality

Proportion of professionally qualified procurement staff as a percentage of total procurement staff (e.g. took CIPS training))

CP WG report 56.8%

(UNDP, UNICEF, WFP, UNFPA, UNECA)

100%

OUTPUT 1.1 UN Agencies in Ethiopia has established 28 inter-Agency LTAs for identified categories of goods and services

LEAD AGENCY UNDP, UNOPS, UNICEF, UNECA, WFP, UNHCR, WHO, IOM

OUTPUT INDICATORS COST QUALITY

SOURCE OF DATA BASELINE TARGET

YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4

Total Target in BOS 2.0 RISK AND ASSUMPTIONS


Survey data 0% >98% >98% >98% >98% >98%

Risks

• Fluctuation of foreign exchange rate

• The local market is not developed to get competitive suppliers/vendors for each category

• Agencies have different threshold for procurement

Assumptions

• UN Agencies are committed to use the inter-Agency LTAs

• The suppliers or vendors are willing to offer the discount

Estimated cost saving from a target of 7% discount from additional joint LTAs

IKM platform USD 38.8 million (2014 combined UN procurement cost )

USD1,515,464 USD 2,717,525

USD 2,717,525

USD 2,717,525

USD 9.6 million

Estimated transaction cost avoided from use of additional joint LTAs

IKM platform USD 6.6 million

(total cost of separate LTAs developed & renewed by the individual UN Agencies)

USD412,890 USD 1,156,092

USD 1,156,092

USD 1,156,092

USD 3.8 million

OUTPUT 1.2 The capacity of UN procurement staff and suppliers/vendors is strengthened to improve procurement process

LEAD AGENCY Common Procurement Working Group



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


No. of joint procurement training, workshops or seminars conducted

CP WG report 2 4 3 3 1 13 Assumptions

• UN Agencies are willing to send their staff to participate in the training, workshops or seminars organized

• UN Agencies are willing to share the cost of training, workshops or seminars

Satisfaction (%) based on annual satisfaction survey on the trainings, workshops or seminars conducted

Survey data 0% >95% >95% >95% >95% >95%


87

OUTPUT 1.3 A regional LTA database is developed and accessible to BOS implementing countries in Southern and East Africa

LEAD AGENCY Common Procurement Working Group

OUTPUT INDICATORS COST QUALITY SOURCE OF

DATA BASELINE TARGET YEAR 1

TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


A regional LTA database is established

IKM platform No Yes Yes Yes Yes Yes Assumptions

• BOS implementing countries are fully cooperate to the process

• Participating countries are willing to be a lead Agency and develop the joint LTAs.

• BOS implementing countries will use the regional LTAs in the database


IKM platform 0 6 5 11

BOS PILLAR 2. COMMON FINANCE SERVICES

LEAD ENTITY COMMON FINANCE WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, WFP, UNWOMEN, WHO, UNECA, UNFPA, UNHCR, UNAIDs, UNESCO, UNOPS, IOM



OUTCOME 2 By 2020, UN Agencies in Ethiopia have realized cost saving from financial transaction



YEAR 5 RISK AND ASSUMPTIONS

Quality Proportion of staff with a professional accountancy qualification as a total finance staff

Finance Working Group Report

TBD TBD Assumptions

• No fund shortage

OUTPUT 2.1 UN Agencies in Ethiopia has established a common banking service agreement to get cost reduction and enhanced quality service

LEAD AGENCY Common Finance Working Group



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated cost saving from joint banking service agreement

Annual report from Common Finance Working group

USD 0 USD 18,800 USD 18,800 USD 18,800 USD 18,800 USD 75,200Assumptions

• The banks will approve the reduction in banking service fee and improvement in quality.

• UN Agencies support and sign the agreement with banks



0% >98% >98% >98% >98% >98%

OUTPUT 2.2 UN Agencies in Ethiopia has established a common banking service agreement to get cost reduction and enhanced quality service




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated cost saving from harmonizing foreign currency exchange rate dealings with banks


USD 0 USD 4 millions

USD 4 millions

USD 4 millions

USD 4 millions

USD 16 millions Assumptions

• The National Bank of Ethiopia will revise the new directives on foreign exchange rate to UN Agencies.

• Agencies accept the common foreign exchange dealing

No. of UN Agencies participated for harmonizing foreign currency exchange rate dealings


0 8 10 12 13 13 (Cumulative figures are

applied)

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OUTPUT 2.3 UN Agencies, funds, programmes and specialized agencies conducted a common VAT reclaim and reduced the loss of fund from uncollected VAT




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated cost saving from harmonizing foreign currency exchange rate dealings with banks


USD 0 USD 4 millions

USD 4 millions

USD 4 millions

USD 4 millions

USD 16 millions Assumptions

• The suppliers/vendors keep the documents properly

• Agencies declare VAT reclaim jointly through FWG.

• UN Agencies finalize and submit the host country agreement

No. of UN Agencies participated for harmonizing foreign currency exchange rate dealings


0 8 10 12 13 13 (Cumulative figures are

applied)

BOS PILLAR 3. HARMONIZED APPROACH TO CASH TRANSFERS (HACT)

LEAD ENTITY HACT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,UNESCO, UNFPA, UNAIDs, UNECA, UNHCR, UNOPS, WHO



OUTCOME 3 By 2020, HACT framework is fully implemented by all UN Agencies providing funds and their Implementing Partners (IPs)




CostProportion of UN Agencies that fully implementing HACT Framework

Annual report from HACT Working Group

14.3%

(Only UNDP, UNICEF, UNFPA,

WFP from 28 UN Agencies)

100% Assumptions

• Agencies policies are harmonized to implement HACT framework

OUTPUT 3.1 UN Agencies have conducted joint micro-assessment for shared IPs

LEAD AGENCY HACT Working Group

OUTPUT INDICATORSCOST QUALITY


YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated cost saving by conducting joint micro-assessment

Annual report from HACT Working group

USD 0 USD 36,000 USD 36,000 USD 36,000 USD 36,000 USD 144,000Assumptions

• All UN Agencies support the implementation of HACT framework

• The IPs remain active during the entire period• Full participation of UN agencies in the working

group



0 6 6 6 6 24

OUTPUT 3.2 UN Agencies have conducted joint HACT audit for shared IPs




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated transaction cost avoided by conducting joint HACT audit of shared IPs

HACT WG report USD 0 6 6 6 6 24 Assumptions

• UN Agencies internal policy and procedures permit joint audit

• No threshold difference among UN Agencies to conduct audit


HACT WG report 0 USD 68,647 USD 68,647 USD 68,647 USD 68,647 USD 274,590

OUTPUT 3.3 The capacities of UN staff and IPs on HACT and Spot check performance is enhanced




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated cost saving by conducting joint capacity development training for IPs

HACT WG report USD 0 USD 48,000 USD 48,000 USD 48,000 USD 48,000 USD 192,000

Assumptions

• There is sufficient fund to conduct joint capacity development programme

No. of joint capacity development training provided on HACT and spot check performance to UN staff and IPs

HACT WG report 1 on HACT 2 (1 on HACT & 1 on Spot check performance)

2 (1 on HACT & 1 on Spot check performance)




No. of IPs that received inter-agency capacity development support on HACT modalities, monitoring and financial management

HACT WG report 0 6 6 6 6 24


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OUTPUT 3.4 A joint assurance plan is developed for shared IPs




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



HACT WG report No Yes Yes Yes Yes Yes

Assumptions

• No difference in threshold of UN Agencies.

• UN Agencies will share their list f IPs & RAA paln for consolidation and implementation of joint audit and HACT trainings

No. of joint spot checks conducted HACT WG report 0 1 1 1 1 4

OUTPUT 3.5 HACT database for shared IPs is regularly updated and further developed




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


No. of IPs uploaded on the HACT database Annual report

from HACT Working group

71 20 20 20 20 151 Assumptions

• The HACT database is accessible to all UN Agencies.• Agencies continuously upload IPs on the HACT

database

OUTPUT 3.6 The UNCT has conducted HACT Macro-Assessment together with Ministry of Finance and Economic Commission (MoFEC)




YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Conducted a HACT Macro-assessment during BOS 2.0


No Yes Yes Yes Yes Yes

BOS PILLAR 4. HUMAN RESOURCES AND COMMON PREMISES

LEAD ENTITY HUMAN RESOURCE AND COMMON PREMISES WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA,FAO,IOM,UNAIDs, UNESCO, UNHCR, UNOCHA, UNOPS



OUTCOME 4 By 2020, recruitment & selection, learning & development aspects of the Human Resources function of UN Agencies in Ethiopia are harmonized

OUTCOME INDICATORS COST QUALITY SOURCE OF DATA BASELINE TARGET


CostAverage elapsed time (working days) from vacancy advertisement to the acceptance of an offer

Annual report from HR Working group

87.5 hrs.

(10 days)

(7 hrs.)

1 day Assumptions


• Agencies internal policies permit harmonization QualityCost of joint learning and development activity as percentage of total expenditure


TBD TBD

OUTPUT 4.1 Joint advertisement and joint recruitment staff modality is operationalized among UN Agencies in Ethiopia

LEAD AGENCY HR Working Group

OUTPUT INDICATORS COST QUALITY SOURCE OF DATA BASELINE TARGET

YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Estimated transaction cost saving by conducting joint advertisement and recruitment staff

Annual report from HR Working group USD 0 USD 37,425 USD 37,425 USD 37,425 USD 37,425 USD 149,700 Assumptions

• UN Agencies’ internal policy and procedures support joint recruitment

No. of staffs recruited by joint advertisement and recruitment modality

Annual report from HR Working group 0 25 25 25 25 100

OUTPUT 4.2 A common effective learning programme is established and operationalized among UN Agencies in Ethiopia



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


No. of training conducted through joint learning programme


0 2 2 2 2 8 Assumptions

• Most training provided by UN Agencies’ are similar


• UN Agencies are willing to share the cost of training



USD 0 USD 37,000 USD 37,000 USD 37,000 USD 37,000 USD 148,000



0 10 10 20

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OUTPUT 4.3 HR Roster of Local Consultant and Support Service Staff is developed and accessible to all UN Agencies in Ethiopia



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


No. of local consultants and support service staff recruited from the HR Roster of consultant

Annual report from HR Working group 0 65 65 65 65 260 Assumptions

• UN Agencies are willing to recruit from the HR Roster

• The HR Roster is regularly updated

Estimated transaction cost avoided from the use of HR Roster of consultants and support service staff



OUTPUT 4.4 A reward framework is established to give recognition for individuals showing outstanding achievement in the OMT and OMT WG’s work



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


A reward framework is established Annual report from HR Working group

No Yes Yes Yes Yes YesAssumptions


• UN Agencies fully participate in the OMT and WG’ s work



0 25 25 25 25 100

OUTPUT 4.5 The UN Agencies, funds, programmes and specialized agencies harmonized Local Consultancy Rate and internship modality



YEAR 1TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4


Harmonized local consultancy rate of UN Agencies

Annual report from HR Working group No Yes Yes Yes Yes Yes Assumptions

• UN Agencies internal policies and procedures support harmonizing of consultancy rate and internship modality.

• UN Agencies are fully cooperative to support the harmonization process

Harmonized Internship modality of UN Agencies



BOS PILLAR 5 COMMON BCM & ICT SERVICES

LEAD ENTITY COMMON BCM & ICT WORKING GROUP

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA



OUTCOME 5 By 2020, the UNCT has strengthened organizational resilience and business continuity


SOURCE OF DATA BASELINE TARGET YEAR 5 RISK AND ASSUMPTIONS

Quality

No. of disruption to business operation in the event of disaster

Annual report from BCM & ICT Working group

TBD TBD Assumptions

• Agencies internal policies permit harmonization in business continuity


OUTPUT 5.1 Information and Knowledge Management (IKM) platform is developed and accessible to all UN Agencies in Ethiopia

LEAD AGENCY BCM & ICT Working Group


SOURCE OF DATA BASELINE TARGET YEAR 1

TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4

Total Target in BOS 2.0

RISK AND ASSUMPTIONS

IKM platform is developed and accessible to all UN Agencies


No Yes Yes Yes Yes Yes Assumptions

• UN Agencies and Working Groups continuously update the IKM platform


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OUTPUT 5.2. A joint/harmonized Business Continuity Management Framework is developed and operationalized both in Addis Ababa and field offices




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



Joint/harmonized BCM Framework is developed and operationalized



Assumptions

• The Head of Agency sign the MoU to make BCM framework operational



0 1 1 1 3



1 2 2 2 2 8

OUTPUT 5.3 A common/shared ICT infrastructure including shared network, common telephony and internet services is developed and operationalized for UN Agencies




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4






• UN Agencies’ internal ICT policy and procedure permit the development of common/shared ICT infrastructure

• All UN Agencies harmonize telecommunication service




OUTPUT 5.4 A common IT data center for identified critical services is established to avoid loss of critical data and ensure continuity of important activities




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



Established One UN IT data center Annual report from BCM & ICT Working group


• UN Agencies’ internal ICT policy and procedure permit the development of common/shared ICT infrastructure

• All UN Agencies harmonize telecommunication service

No. of Agencies participated in One UN IT Data center


0 13 13 13 13 13

No. of ICT workshops conducted Annual report from BCM & ICT Working group

0 2 2 2 2 8

BOS PILLAR 6 HOST COUNTRY AGREEMENT /LEGAL

PARTICIPATING UN AGENCIES UNDP, UNICEF, WFP, UNWOMEN,WHO, UNECA, UNFPA, FAO, ILO, IOM, ITU, UNAIDs, UNESCO, UNHCR, UNOHCHR, UNOPS, WFP



OUTCOME 6 By 2020, all UN Agencies, Funds and Programmes in Ethiopia have common Host Country Agreement with supplemental agreement

OUTPUT 6.1 The awareness of federal & regional government officials on the UN, its working methods as well as its privileges and immunities is enhanced




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



No. of sensitization workshops conducted on immunities and privileges for government officials

Annual report from HCA/Legal Working group

5 3 3 3 3 17

Assumptions

• Government Agencies are willing to send their representative in the training sessions

No of regions that received information materials on the UN’s working methods and legal status prepared in their local language


0 2 2 2 2 8

No. of federal and regional government Agencies that participated in the sensitization workshop on UN’s working methods and legal status


5 regional Agencies

2 federal & 1 regional Agencies




6 regional & 6 federal Agencies

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OUTPUT 6.2 Supplemental Agreements of UN Agencies, Funds and Programmes are prepared




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



Prepared supplemental agreements to UN Agencies



• UN Agencies harmonize their policies and procedures.

• UN Agencies approve the host country Agreement

Provided technical support on UN Privileges and immunities to OMT/Agencies



OUTPUT 6.3 The knowledge of UN officials and experts on the privileges and immunities of the UN and its staff is enhanced




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



Organized regular briefing to UN staffs on a yearly basis



Assumptions


Conducted consultative seminar for UN Agencies HR managers on staff immunity and privileges



No. of UN staff members participated in the sensitization workshops on legal status of UN staff


0 50 50 50 50 200

OUTPUT 6.4 UNCT availed legal support in host country negotiations and deliberations on tax, customs, immigrations, communications and other legal affairs.




TARGET YEAR 2

TARGET YEAR 3

TARGET YEAR 4



No. of retreat conducted with key government counter parts


0 1 1 2 Assumptions


• The National Bank of Ethiopia revise the new directive as per the request of UNCT

Provided support to the UNCT in the negotiation to obtain appropriate banking service as well as VAT exemption




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UNITED NATIONS COUNTRY TEAM IN ETHIOPIA

Terms of Reference Operations Management Team (OMT)

This Terms of Reference (ToR) outlines the purpose, mandate, membership structure and working methods of the Operations Management Team (OMT) within the context of Delivering as One (DaO).

1. Purpose and Functions

Under supervision of the United Nations Country Team (UNCT), the Operations Management Team (OMT) brings together UN Agencies, Funds, Programmes and Specialised Agencies in Ethiopia6. The OMT provides leadership on the implementation of a coordinated, efficient and effective common operational support agenda at the country level. The aim of the common operations agenda at country level is to ensure programme delivery is supported in an effective and efficient possible way, ensuring high quality, timely operational support to participating UN Agencies. The means to achieve this is through a joint, common approach for a select range of operational support service where there is a clear business case to provide services as a group of UN Agencies, rather than providing these services as individual UN

6 Hereafter, the term “UN Agencies” will be used in this document to refer to the UN Agencies, Funds, Programmes and Specialized Agencies.

Agencies. This means that there is a clear, demonstrable benefit in terms of cost reduction or quality of services, realized by engaging jointly in the development and management of the identified services.

Common Operations is defined as a predefined range of common operational services and common premises related services.

2. Responsibilities

As an accountable entity to the UNCT, the OMT is responsible for identification, assessment, prioritization and planning for common operations in support of programme delivery. More specifically the OMT coordinates joint activities in the following areas of operations:

• Joint strategic planning: Business Operations Strategy (BOS) and Annual Work Planning;

• Common Business Continuity Management (BCM) & Information and Communications Technologies (ICT);

• Common Finance;

• Common Harmonize Approached to Cash Transfers (HACT);

• Common Host County Agreement (HCA) / Legal;

• Common Procurement;

• Human Resources and Common Premises;

Annex 4: Terms of Reference for OMT and OMT Working Groups

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Specific OMT responsibilities include; Planning and Strategy

• Develop the BOS working with the Inter-Agency Programming Team (IAPT)/ Programme Management Team (PMT) to identify programmatic needs in line with the UN Development Assistance Framework (UNDAF)/One Programme cycle including approval by the UNCT of the BOS;

• Ensure the BOS responds to programmatic needs set by UNDAF, translate the BOS into annual work plans for monitoring and implementation, formulate the proposed common services budget and address implementation challenges through innovative inter-agency support,

• Annual work planning for common operations;

• As part of the BOS, preparation of Baseline and Cost-Benefit Analysis for the establishment of a new common service or the enhancement of an existing common service.

• Monitor and evaluate existing common services and identify areas where these services can be improved and costs reduced.

• In accordance with international best practices, provide the UNCT with guidance on harmonization and simplification of agency rules, regulations and operations activities, while promoting openness and transparency,

• Implement planned common services and other relevant activities with a lead agency spearheading each activity and ensuring that the necessary procurement and other contractual arrangements are in place.

Management and Oversight

• Implementation of common services plans including resource mobilization in support of common operations where needed;

• Management of common operations solutions, e.g. common services;

• Management the OMT budgets at the country level, including the development of the annual budget and ensuring agreement is reached on the budget;

• Oversight of the OMT Technical Working Groups (TWGs) working on initiatives under the OMT;

• Providing support to other interagency platform, in particular in the area of programmes, with the objective of ensuring optimal use of available resources.

Quality Assurance and Client Management

• Quality Assurance and client management: Review the quality and cost effectiveness of each of the common services with the client UN Agencies and identify new demand for services and areas for improvement of existing services where needed;


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• Ensure that UN Agencies benefit from the economies of scale offered by common services and that the quality of common services equals or improves or at least be the same as existent.

Reporting

• Annual reporting to the UNCT on expenditures from Common Service account based on the annual work plan and in line with the approved annual budget;

• Reporting to the UNDG (through IMS) and UNCT on results vis-à-vis the BOS and Annual Work Plan.

Governance

• The OMT reports to the UNCT and is responsible for the monitoring, evaluation and reporting on the progress of implementation for each of the work streams under the BOS and the Annual Work Plan to the UNCT and UNDG;

• The OMT TWGs are responsible for regular (usually monthly) reviews of progress of the BOS implementation using the results matrices and M&E matrices. Note that, BOS implementations can be narrowed down into annual work plan and the progress of implementation of the annual work plan of each Working Group should be reported on the monthly basis;

• The OMT members are expected to abide by the UN staff rules and regulations, and demonstrate a professional and committed attitude

at all times. Accordingly, members are urged to maintain a “One UN” approach and respect others’ contributions.

3. UN Country Team (UNCT)

• The UNCT holds the ultimate decision power for all matters related to Common Operations;

• The UNCT is ultimately responsible for the achievement and reporting on results reflected in the results matrix of the BOS and the BOS Annual Work Plan;

• The UNCT outlines the long and medium term vision for Business Operations and provides guidance to the OMT with regards to the operationalization of that vision in the BOS;

• In case of disagreement within the OMT, UNCT serves as the final platform for escalation.

4. Operations Management Team (OMT)

• The OMT manages and coordinates the development and implementation of the BOS;

• The OMT Provides oversight over the implementation of existing Business Operations Harmonization initiatives (including Common Services) by the Service provider, with the aim to ensure service delivery is in line with the agreed Key Performance Indicators;

• The OMT develops annual work plans, based on the BOS, which guide the OMT activities and financial needs for that particular year;

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• The OMT operates on the basis of the results matrices for Business Operations as reflected in the BOS and an integrated annual work plan guiding the different OMT activities.

• The OMT Chair reports on a regular basis to the UN County Team on progress and issues regarding the implementation of the activities supporting each of operations outcomes. Progress updates are based on the indicators and targets as reflected in the BOS M&E framework;

• The Annual Work Plan of the OMT must have clear links to the BOS, and each Annual Work Plan progressively contributes to the achievement of the targets articulated in the BOS.

• The OMT has different Technical Working Groups working on specific Business Operations Harmonization initiatives (including Common Services). The Technical Working Groups are on BCM & ICT, Finance, HACT, HCA/ Legal and Procurement, etc.;

• The OMT has developed M&E tool in the Information and Knowledge Management (IKM) platform to assess the savings on implementing the BOS;

• The OMT has a dedicated M&E focal point that is responsible for the M&E activities for each of common series;

• It is recommended the OMT is chaired by a Head of Agency/ senior operations management level with the co-chair being at the operations management level of an agency other than the agency of the chair.The OMT shall nominate a Chairperson and two Co-Chairpersons for the year at each OMT Retreat.

The OMT Chairpersons shall provide leadership and guidance in the fields of common services and common premises, and other relevant operations issues to ensure sufficient, high-quality, cost-effective and timely support to UN’s programmatic activities.

More specifically, the OMT Chairperson shall be tasked with the following:

• Take the lead in organizing, moderating and following up on OMT meetings,

• Ensure that the OMT drafts and implements a comprehensive, results-based and measurable BOS and monitoring framework, and an associated annual work plan and budget,

• Facilitate creation of new common services, and proper monitoring and strengthening of existing common business operations, and

• Attend UNCT meetings to report progress achieved, implementation challenges, decisions taken, and proposed plans and activities. To support the OMT Chairperson in coordinating the work of the OMT, there shall be two OMT Co-Chairpersons, who will assume the following duties and responsibilities. Each of these should be clearly assigned to an OMT Co-Chairperson, and work should be divided between two Co-Chairpersons equally at the beginning of their term.

• Taking the lead in strategic planning activities including drafting and monitoring of the BOS, annual work plans and budgets.

• Taking the lead in reporting activities.


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• Helping the OMT Chairperson with coordination of the OMT meetings and daily activities, including taking the lead in preparation of relevant documents, presentations and meeting minutes.

Moreover, the duty of coordinating with each OMT Working Group shall be assigned to an OMT Co-Chairperson at the beginning of their term. This will include reporting to the OMT on the OMT Working Group meetings and activities in collaboration with the OMT Working Group Chairpersons, and overseeing the work of lead UN Agencies to ensure the completion of the annual work plan outcomes assigned to the Working Group.

The OMT Co-Chairpersons and/or other OMT members shall be appointed by the OMT based on expertise to represent the OMT at the DaO Working Groups including Inter-Agency Programming Team (IAPT)/ Programme Management Team (PMT), UN Communications Group (UNCG) and Monitoring and Evaluation Working Group (M&E WG), etc. These individuals will be responsible for attending the monthly meetings of these groups to discuss programme needs, support provided through common services, relevant OMT activities and work plans, and report back to the OMT on progress achieved, implementation challenges, decisions taken, and proposed plans and activities.

5. OMT Working Groups

The OMT has different Technical Working Groups working on specific Business Operations Harmonization initiatives (including Common Services). The Technical

Working Groups are on BCM & ICT, Common Procurement, Finance, HACT, HCA/ Legal and Human Resources.

At the beginning of each year, the OMT shall set up Working Groups to accomplish all the activities and tasks in order to implement its work plan. Therefore, these working groups will represent the priorities set in the annual work plan.

Each Working Group shall be led by a Chairperson, responsible for planning and coordinating activities assigned to that priority area of the work plan, and at least a Co-Chairperson, mainly tasked with organizing meetings at least 9 times a year, preferably on monthly basis within the premises of a member organizations, and reporting to the OMT Chairpersons in the form of monthly status reports and meeting notes.

Primary and alternate OMT members of UN Agencies shall ensure the membership of relevant managers and technical experts of agencies such as procurement, human resources and ICT officers to the OMT Working Groups, ensuring that each outcome, output and activity assigned to each Working Group is led by a relevant and competent Working Group as well as agency. Accordingly, lead UN Agencies shall work to coordinate and implement assigned tasks using the resources allocated by the budget.

The OMT may decide to hire technical experts as consultants to help with implementation of relevant activities. The tasks and responsibilities assigned to each consultant should be detailed in the respective Terms of Reference.

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6. Frequency of Meetings

The OMT shall meet at least 9 times a year, preferably on monthly basis in a designated location but special meetings may be convened if necessary by the OMT Chairpersons to ensure timely reporting to the UNCT, it is recommended that the meetings are held on the third Wednesday of the month. The OMT-member Agencies shall take turns in hosting the OMT meetings

• A quorum is reached with the attendance of more than half of the members (currently it is 11 members based on 22 UN Agencies representations in the OMT).

• An annual OMT Retreat shall be held at the beginning of each year to review progress and challenges and finalize the work plan and budget for the year. These work plans and budgets will be submitted to UNCT for endorsement.

• A review of the OMT activities will be presented to the UNCT and UNDG at the end of each year. Reporting to the UNDG usually happens by the UNCT and the OMT through the RCO when they submit the UNCT work plan on behalf of the UNCT through IMS (UNDG Information Management System).

• The draft agenda for each meeting shall be circulated with relevant background documents to the OMT before the meeting. The OMT members are requested to review the agenda and suggest any additional topic they would like to discuss at the meeting.

A standard meeting agenda usually includes the following item:

o Review of the minutes of last meeting and related follow-up actions;

o Review of the work plan and progress made;

o Identification of the recommendations and requests for of the UNCT;

o Any other business.

To ensure easy and efficient correspondence, an OMT e-mail distribution list is maintained ([email protected]), including all primary and alternate OMT members as well as RCO. Any adjustments to this e-mail list shall only be authorized by the OMT Chairpersons and RCO. Issues requiring an urgent OMT decision and/or endorsement may also be discussed and concluded over the e-mail list.

7. Minutes and Secretariat

The secretariat of the OMT is either the Resident Coordinator’s Office (RCO) or a staff member from the agency that provides the OMT Chair. The meeting minutes of each OMT Working Group meeting will be taken by the OMT Working Group members on the rotating basis. The RCO will provide the support to circulate the meeting minutes among the respective OMT Working Group and the OMT.

To ensure that the items discussed at meetings are properly reported, the minutes will be circulated to the OMT members


99

for comments/corrections no later than one week after the meeting, before being finalized and shared with the UNCT.

For ease of reporting, a meeting minutes template should be used, which includes:

• All the matters/paragraphs discussed presented by item;

• Clear indication of actions to be taken and those responsible for taking them;

• The deadline for the execution of each task for all the actions.

The OMT secretariat should share the electronic version of the minutes to the UNCT. It is highly recommended that the UNCT meeting agenda includes a standing item on common operations to ensure the UNCT remains informed and can provide support to the OMT while pursuing the BOS targets. Usually the Chair of the OMT is invited to provide the update to the UNCT. It is highly recommended that the performance appraisal of the staff member involved in any of the above platforms reflects their role and results to be achieved, as this plays a critical role in terms of incentive and accountability.

8. Membership and Chairmanship

• The OMT shall nominate a Chairperson and two Co-Chairpersons for the year at each OMT Retreat. These nominations are subjected to the review and approval of the UNCT. These positions shall be held for a year on a rotational basis.

• The OMT is an inclusive forum and founded on the principles of

commitment and active participation. It shall be composed of the senior operations managers and administrative officers of UN Agencies in Ethiopia. Each participating UN Agencies is requested to designate a primary and an alternate member to ensure that their organization is represented at all times in the OMT meetings.

• All OMT members, primary or alternate, must hold fixed-term contracts and have work for their respective UN Agencies at least for a year, preferably in Ethiopia. Attendance of other UN staff to meetings on ad-hoc basis shall be communicated in advance to the OMT Chairpersons, and may require the OMT approval.

• Each UN Agency must ensure that they nominate a member and alternate to the OMT. Based on number of UN personal, programmes and projects in the country, each UN Agency may determine which OMT Technical Working Group that they would like to represent. However, it is expected all the UN Agencies in the country nominate a member and alternate to the OMT regardless of number of UN personal, programmes and projects in the country.

• The UNCT in Ethiopia adopted the Accountability Framework and Reward Framework on 7 April 2015 and accordingly, the nominations to the OMT and OMT Working Groups should come from each Head of Agency (HoA).

• It is recommended the OMT is chaired by a Head of Agency/ senior operations

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management level with the co-chair being at the operations management level of an agency other than the agency of the chair.

• The OMT Chair can rotate every year, upon proposal of any OMT member and decision of the UNCT. The OMT Chairmanship shall be linked to an agency rather than to individuals.

• The OMT may constitute temporary Technical Working Groups to undertake specified task(s). Membership will be decided based on competency and added value.

• If relevant, a coordinating agency or Chairperson of a Working Group shall be selected from within OMT membership on the basis of knowledge/expertise or agency strength in the particular field.

9. Confidentiality

Most discussions and reports are in the public domain and therefore can be shared openly. However, members are required to uphold the confidentiality of sensitive information when it is explicitly classified as such.

10. Reporting and Documentation

• The RCO should be the repository for all OMT files, in which all documentation deemed necessary for audit purposes should be kept. Managing Agencies should submit relevant documentation to the RCO on their responsible areas. The Chair of each Technical Working Group is responsible for keeping the detailed file for the Technical Working Group activity and sending copies of all

relevant documents to the RCO for the official record. Additionally, the Chair of the Technical Working Group will make available any documentation to any requesting agency. For convenience and transparency, all relevant files shall be placed on the inter-agency online knowledge management platform (http://ikm.et.one.un.org/).

• Whenever it convenes, the OMT shall maintain official minutes of the meetings including discussions on key issues leading to decisions and action points. An OMT Co-Chairperson shall be responsible for ensuring that draft OMT meeting minutes are prepared and circulated for comments in a timely manner after each meeting. Based on the comments provided by the OMT, meeting minutes shall be finalized and submitted to the UNCT. The RCO will provide administrative and secretariat support to the OMT.

• Meeting minutes shall specifically spell out decisions taken and action points assigned at each meeting, including a clear timeline and focal point (Agency) for each.

• The RCO shall take the lead in addressing UN corporate reporting requirements, such as RC’s Annual Report and donor reports, in consultation with the OMT Chairpersons.

• An Annual OMT report shall be prepared at the end of the year, summarizing accomplishments, implementation challenges, activities, pending issues, lessons learned, best practices and strategic plans on common services.


101

11. OMT Work Planning

• At the end of each year, the OMT shall draft a detailed work plan for the upcoming year, outlining specific priority areas, proposed working groups, outcomes, outputs, activities, and lead UN Agencies, indicators, baselines and targets for each activity. For planning purposes, this work plan shall also be broken down into a budget and quarterly list of planned major activities. An OMT Co-Chairperson shall take the lead in coordinating this effort, together with the OMT Working Groups. After finalized by the OMT, the draft OMT work plan, budget and activity list will be submitted to RCO for UNCT review, approval and consideration for funding.

• OMT annual work plans must reflect and plan to achieve priorities, outcomes and outputs outlined in the results-based BOS. At the end of each year, progress towards the BOS shall be reviewed by the OMT. Three months before the end of each BOS cycle, an OMT Co-Chairperson shall take the lead in coordinating the effort to draft a new BOS.

12. Decision Making

Consensus is the preferred method of making decisions in the OMT. However, in the event that this cannot be achieved, the OMT Chairpersons may put an issue to vote, for which simple majority is required. During voting, even if there are more than one staff member representing an agency, each represented UN Agency shall have only a single vote. Issues that cannot be resolved by the OMT shall be referred to the Resident Coordinator (RC).

13. Resources In order to fulfil its duties and responsibilities, the OMT shall approach UNCT through RCO for the allocation of required resources and funding. These include meeting space, equipment, consultancy services and technical expertise required. In accordance with DaO, the OMT budget shall be a part of the RC’s budget, and may be covered by core funding and/or agency cost-share. Work plan activities that are only applicable to certain UN Agencies shall be settled separately by participating UN Agencies. As the administrative agent, UNDP will be requested through the RCO to process payments and procure consultancy services, as required.

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Annex 5: Membership list of OMT and OMT Working Groups Table A 8: Operation Management Team Members

Name Agency

Perm

anen

t

FAO

Ms. Yasebework Wondimagegnehu ILO

Mr. Marcelino Tayob ITU

Ms. Miriam Maluwa UNAIDS

Mr. Wossenu Aberra UNAIDS

Mr. Janvier Wussinu UNDP

Mr. Marco Smoliner UNDSS

Ms. Zebib Tekle UNECA

Mr. Carlos Haddad UNECA

Mr. Fetsum Kurabachew UNECA

Mrs. Ophelia Stephenson-Odle UNESCO

Mr. Gilbert Mutai UNHCR

Mr. Alaa Al-Alami UNICEF

Mr. Francis Mumbey-Wafula UNOAU

Ms. Anketse Kassa UNODC

Ms. Kebrework Ashenafi UNOHCHR

Mr. Gurel Gurkan UNOPS

Ms. Selamawit Tsige UNV

Ms. Silper Pesa (OMT Chair) UNWOMEN

Mr. Ryan Pittock WFP

Mr. Paul Makwinja UNFPA

Mr. Pierre Claver Lessimi WHO

Alt

erna

te

Mr. Afework GebreEyesus FAO

Ms. Tigist Sahleselassie ILO

Mr. David Mavengere IOM

Ms. Martha Gezahegn ITU

Mr. Taye Amssalu UNDP

Ms. Addis Tibebe UNAIDS

Mr. Mohammed Yunus UNECA

Mr. Jozef Stahuliak UNDSS

Ms. Belyou Teferra UNFPA

Mr. Ammar Gizouli UNHCR

Ms. Belainesh Haile Mariam UNIDO

Ms. Sara Mengistu UNOCHA

Mrs. Knogita Girma UNOHCHR

Mr. David Mulbah UNOPS

Ms. Merethe Ihme WFP

Mr. Tesfaye Damte WHO

RCO

and

WG

Cha

irs

Mr. Tarmo Heikkila RCO

Mr. Saman Mastiyage Don RCO

Mr. Yehalu Fisseha RCO

Ms. Selamawit Haile RCO

Ms. Yodit Gebre Tensae UNDP

Ms. Meron TESFU IOM

Mr. Ahmed Al-Awah UNECA

Mr. Ildephonse Ikitegetse UNOAU

Mr. Bekele Nigatu UNDP

Ms. Virginie Seznec WFP

Mr. Assefa Gebrehiwot UNDP

Mr. Endrias Getachew UNDP

Ms. Aleka Ewinyu UNHCR

Mr. Asmerom Mekonen RCO


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A. Common Procurement Working Group B. Common Finance Working Group

Working Group

Agency Representative Working Group

Agency Representative

Chair UNOPS Mr. Gurel Gurkan Chair UNDP Mr. Endrias Getachew

Co-Chair UNDP Mr. Assefa Gebrehiwot Co-Chair UNHCR Ms. Aleka Ewinyu

Member FAO Mr. William Manuel Alternate IOM Mr. Anteneh Hailu

Member FAO Mr. Zewdu Fantu Member ILO Ms. Yasebework Wondimagegnehu

Member IOM Mr. Gebrehiwot Tesfaye Alternate ILO Ms. Tigist Sahleselassie

Member IFAD Mr. Abebe Zerihun Member UNAIDS Mr. Wossenu Abera

Member ILO Ms. Rahel Girma Alternate UNAIDS Ms. Addis Tibebe

Member ILO Ms. Yasebework Wondimagegnehu Member UNECA Ms. Halima Abukar

Member UNAIDS Ms. Addis Tibebe Alternate UNECA Mr. Messkir Lemma

Alternate UNAIDS Ms. Sebleselassie Getachew Alternate UNESCO Mr. Adankegn Mekonnen

Member UNOPS Mr. David Mulbah Member UNFPA Mr. Yonas Tadele

Member UNECA Ms. Ali Assad Alternate UNFPA Mr. Million Melaku

Alternate UNECA Mr. Yonas Woldesemayat Alternate UNHCR Mr. Gilbert Mutai

Alternate UNECA Ms. Priscillah Kaara Member UNOPS Ms. Abenezer Teruneh

Alternate UNECA Mr. Leikun Tewabe Member UNWOMEN Ms. Meseret Habte

Member UNFPA Mr. Ermias Wosenyeleh Alternate UNWOMEN Mr. Biniam Aklilu

Member UNFPA Mr. Daniel Regassa Member WFP Mr. Yoseph Sulito

Member UNICEF Mr. Srikanth Srinivasan Alternate WFP Mr. Ryan Pittock

Member UNWOMEN Ms. Meron Getachew Member WHO Mr. Tesfaye Damte

Alternate UN WOMEN Ms. Yodit Hailemichael Alternate WHO Mr. Kidanemariam Hintsa

Member WFP Ms. Assumpta Samkange

Alternate WFP Mr. Molla Sharew

Member WHO Ms. Lishan Negussie

Alternate WHO Ms. Fasika Mesfin

Member UNHCR Mr. Pamphile Barampana

Alternate UNHCR Mr. Srdja Marotic

Member UNESCO Mr. Fanuel Tesfaye

Alternate UNESCO Mr. Abebe Demie

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Working Group Agency Representative Working

Group Agency Representative

Co-Chair UNDP Ms. Yodit Gebre Tensae Chair UNDP Mr. Bekele Nigatu

Member ILO Ms. Yasebework Wondimagegnehu Co-Chair WFP Ms. Virginie Seznec

Alternate ILO Ms. Tigist Sahleselassie Member FAO Ms. Claudia Broderick

Member ITU Mr. Dawit Beyene Alternate FAO Ms. Amrot Tadesse

Member UNAIDS Mr. Wossenu Aberra Member IOM Ms. Frehiwot Webeshet

Alternate UNAIDS Ms. Addis Tibebe Alternate IOM Mr. David Mavengere

Member UNESCO Mrs. Ophelia Stephenson-Odle Member UNOCHA Ms. Sara Mengistu

Member UNFPA Ms. Beleyou Teferra Alternate UNESCO Mr. Mekdes Tadesse

Alternate UNFPA Mr. Behailu Gebremedhin Member UNECA Ms. Sajiv Nair

Member UNICEF Mr. Yidnek Tilahun Alternate UNECA Ms. Hirut Asrat

Alternate UNICEF Mr. Henok Yohanes Member UNFPA Ms. Selam Getachew

Member UNECA Mr. Marlone Lezama Alternate UNFPA Mr. Yonas Tadele

Alternate UNECA Mr. Hemant Sunth Member UNICEF Ms. Mahlet Abraham

Member UNOPS Mr. Gurel Gurkan Alternate UNICEF Mr. Stanley Kilel

Member UN WOMEN Ms. Biniam Aklilu Member UNOPS Mr. Hibret Asegid Antataw

Member WFP Mr. Yoseph Sulito Alternate UNOPS Ms. Mapula Thema

Alternate WFP Ms. Fikir Fasika. Member UNWOMEN Ms. Meron Getachew

Member WHO Mr. Tesfaye Damte Alternate UNWOMEN Ms. Tsegereda Lemma

Alternate WHO Mr. Kidanemariam Hintsa Member WHO Ms. Tesfaye Berhanu

Member UNHCR Mr. Reuel Christopher Nettey Alternate WHO Ms. Kalkidan Zewde

Alternate UNHCR Mr. Jose Barrena Member UNHCR Ms. Stella Murunngi

Alternate UNHCR Mr. Gilbert Mutai

Member ILO Ms. Blen Admassu

Alternate ILO Ms. Yasebework Wondimagegnehu

Member UNAIDS Mr. Wossenu Abera

Alternate UNAIDS Ms. Sebleselassie Getachew

C. Harmonized Approach to Cash Transfers (HACT) Working Group

D. Human Resources and Common Premises Working Group


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Table A 9: Working Group Members

E. Common BCM & ICT Working Group F. Host Country Agreement/ Legal WG

Working Group Agency Representative Working

Group Agency Representative

Chair UNECA Mr. Ahmed Al-Awah Chair UNECA Ms. Sandra Baffoe-Bonnie

Co-Chair UNOAU Mr. Ildephonse Ikitegetse Co-Chair IOM Ms. Meron Tesfu

Member ITU Mr. Emmanuel Kamdem Member FAO Mr. Afework GebreEyesus

Member UNDSS Mr. Nebiyu Afework Member ILO Ms. Yasebework Wondimagegnehu

Alternate UNDSS Mr. Adane Genetu Alternate ILO Ms. Tigist Sahleselassie

Member UNDP Mr. Taye Amssalu Alternate IOM Mr. Jian Zhao

Member UNDP Ms. Rahel Wubshet Alternate UNECA Mr. Amboko Wameyo

Alternate UNDP Mr. Tewodros Ayele Member ITU Ms. Ida Jallow

Member UNFPA Mr. Paul Makwinja Member ITU Mr. Dawit Beyene

Member UNFPA Mr. Amha Araya Member ITU Ms. Meron Kidane

Alternate UNFPA Ms. Belyou Teferra Member UNAIDS Mr. Wossenu Aberra

Alternate UNFPA Mr. Abraham Gelaw Alternate UNAIDS Ms. Addis Tibebe

Member ILO Ms. Yasebework Wondimagegnehu Member UNDP Mr. Janvier Wussinu

Alternate ILO Mr. Ermias Ashagrie Alternate UNDP Mr. Taye Amssalu

Member IOM Mr. Gebriel OKutoi Member UNFPA Mr. Paul Makwinja

Member IOM Ms. Belyou Guirbo Member UNFPA Ms. Beleyou Teferra

Alternate IOM Mr. Tilaye Teshome Member UNICEF Mr. Alaa Al-Alami

Member UNAIDS Mr. Wossenu Abera Alternate UNHCR Mr. Gilbert Mutai

Member UNAIDS Mr. Daniel Asrat Alternate UNHCR Dr. Mamadou Dian Balde

Alternate UNAIDS Ms. Addis Tibebe Member UNESO Mrs. Ophelia Stephenson-Odle

Member WHO Mr. Pierre Claver Lessimi Member UNDSS Mr. Marco Smoliner

Member WHO Ms. Mihret Abeselom Member UNOHCHR Mr. Kinetibeb Arega

Alternate WHO Mr. Tesfaye Damte Member UNOPS Mr. Gurel Gurkan

Alternate WHO Mr. Ayenachew Zewde Alternate UNOPS Ms. Basazinew Terefe

Member FAO Mr. Afework Gebreyesus Member UNWOMEN Ms. Sliper Pesa

Alternate FAO Ms. Genet Tesfaye Member WFP Ms. Blessing Ezeibe

Member UNHCC Dr. Grace Fombad Member WFP Mr. Kidist Mammo

Member UNHCR Ms. Hiwot Alemu Member WHO Mr. Pierre Claver Lessimi

Member UNHCR Mr. Issac Howrad

Alternate UNHCR Mr. Gilbert Mutai

Alternate UNHCR Mr. Zewdie HaileSelassie

Member UNECA Ms. Zebib Tekle

Alternate UNECA Mr. Jean Paul Gondje

Alternate UNECA Mr. Mohammed Yunus

Member UNESCO Mr. Ashagrie Befekadu

Member UNESCO Mrs. Ophelia Stephenson-Odle

Alternate UNESCO Mr. Henok Workye

Member UNICEF Mr. Yogendra Rai

Alternate UNICEF Mr. Daniel Wondimu

Member UNOAU Mr. Kilmore Madzivadondo

Focal Point UNOPS Mr. Gurel Gurkan

Member UNOPS Mr. Henok Bekele

Member UNWOMEN Mr. Abraham Gebremeskel

Member WFP Ms. Merethe Ihme

Member WFP Mr. Lionel Marre

Alternate WFP Mr. Ryan Pittock

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Annex 6: Sustainable Development Goals (SDGs)Sustainable Development

GoalsTarget

SDG 1End poverty in all its forms everywhere (No Poverty)

Target 1.1. Ensure significant mobilization of resources from a variety of sources to implement programmes and policies to end poverty in all its dimensions.Target 1.5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

SDG 2End hunger, achieve food security and improved nutrition and promote sustainable agriculture (Zero Hunger)

Target 2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.

SDG 4Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all (Quality Education)

Target 4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurshipTarget 4.6 By 2030, ensure that all youth and a substantial proportion of adults, both men and women, achieve literacy and numeracy

SDG 8Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (Decent Work and Economic Growth)

Target 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value Target 8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training Target 8.8 Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment Target 8.9 By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization Target 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

SDG 9Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (Industry, Innovation and Infrastructure)

Target 9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all Target 9.2. Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing StatesTarget 9.3 Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020


107

SDG 10Reduce inequality within and among countries

Target 10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard Target 10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality

SDG 11Make Cities and human settlements inclusive, safe, resilient and sustainable

Target 11.1 By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels

SDG 12Ensure sustainable consumption and production patterns

Target 12.7Promote public procurement practices that are sustainable, in accordance with national policies and priorities

SDG 13Take urgent action to combat climate change and its impacts

Target 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

SDG 16Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Target 16.3 Promote the rule of law at the national and international levels and ensure equal access to justice for all Target 16.10 Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements Target 16.b Promote and enforce non-discriminatory laws and policies for sustainable development

SDG 17Strengthen the means of implementation and revitalize the global partnership for sustainable development

Target 17.1 Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection Target 17.3 Mobilize additional financial resources for developing countries from multiple sources Target 17.7Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favorable terms, including on concessional and preferential terms, as mutually agreed Target 17.8 Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology

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Annex 7: BOS 2.0 (July 2016 - June 2020) Total Budget and Investment & Financing plan

TOTAL BUDGET (USD) INVESTMENT PLAN (USD) INVESTMENT FINANCING PLAN (USD)

BOS PILLARS

DESCRIPTION DETAILS TOTAL FOR

UNDAF CYCLE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL FINANCED BY :

RECEIVED FROM UN AGENCIES

CONTRIBUTION

RECEIVED FROM UNDG

(DOCO)

GAP

EXPECT FROM UN AGENCIES

CONTRIBUTION

EXPECT FROM UNDG

(DOCO)

PILLAR 1: COMMON PROCUREMENT SERVICES

375,180 196,680 82,500 49,500 46,500 375,180 90,000 141,180 144,000 0

Common LTA Advertisement Cost

42,000 15,000 27,000 42,000

Two Business Seminars

6,000 3,000 3,000 6,000

CIPS trainings (II,III,IV) for UN procurement/programmed staff

180,000 45,000 45,000 45,000 45,000 90,000 90,000

Ethics training for UN procurement staff

1,500 1,500 1,500

Common procurement retreat

6,000 1,500 1,500 1,500 1,500 1,500 4,500

Subscription fee to use Chamber of Commerce’s supplier database for tenders

5,000 5,000 5,000 0

Consultancy fee for creation, conduct and evaluation of tender

9,000 4,500 4,500 9,000 0

Consultancy fee for International and national common procurement consultants for vendor mapping

81,000 81,000 81,000 0

Visit in 5 regions (Mikelle, Ijjigu, Gambelia, Bahir-Dar and Hadassah) in Ethiopia for vendor mapping

5,000 5,000 5,000

Visit in 5 BOS implementing countries in Southern and East Africa region and 5 regions in Ethiopia for vendor mapping

23,000 23,000 23,000 0

Consultancy fee for creating regional LTA database on the IKM platform

4,680 4,680 4,680 0

A regional level workshop for 5 BOS implementing countries in Southern and East Africa region for vendor mapping

12,000 12,000 12,000 0


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PILLAR 2: COMMON FINANCE SERVICES 75,500 0 38,500 0 37,000 75,500 0 0 75,500 0

Bank Survey 1,500 1,500 1,500

Capacity building training on financial management

74,000 37,000 37,000 74,000

PILLAR 3: HARMONIZED APPROACH TO CASH TRANSFER (HACT)

169,500 7,500 54,000 54,000 54,000 169,500 7,500 0 162,000 0

Micro-assessment for 24 shared IPs

54,000 18,000 18,000 18,000 54,000

Audit Service for 24 shared IPs

36,000 12,000 12,000 12,000 36,000

Macro-assessment 5,000 5,000 5,000 0

Capacity development training on HACT and Financial Management

74,500 2,500 24,000 24,000 24,000 2,500 72,000

PILLAR 4: HUMAN RESOURCES AND COMMON PREMISES SERVICES

62,900 22,200 12,900 4,900 22,900 62,900 23,200 0 39,700 0

Capacity development training for HR Managers

20,000 10,000 10,000 20,000

CBIS Training 16,000 8,000 8,000 8,000 8,000

One UN Induction 4,500 1,500 1,500 1,500 4,500

Consultancy fee for development of HR Roster of Local Consultants and Support Service Staff and upload on IKM

14,200 14,200 14,200 0

Joint advertisement & recruitment cost

1,200 400 400 400 1,200

Ceremony and handover rewards for individuals showing outstanding achievements in OMT and its WG

7,000 1,000 3,000 3,000 1,000 6,000

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PILLAR 5: COMMON BCM & ICT SERVICES 220,000 29,000 141,000 25,000 25,000 220,000 29,000 91,000 100,000

Common Internet Connection

10,000 10,000 10,000

Common Telephone Services

10,000 10,000 10,000

Training to UNDP staff on Maintain IKM platform

6,000 6,000 6,000

Develop Security Management Component on the IKM platform

4,000 4,000 4,000 0

Improve the IKM dashboard

15,000 15,000 15,000

Business Continuity and Information Technology Disaster Recovery assessment

21,000 21,000 21,000 0

Business Continuity and Organizational Resilience software for all the UN

100,000 100,000 100,000

Crisis and incident response management training for senior/top level managers and critical staff

4,000 4,000 4,000 0

Capacity development training on BCM certification and Microsoft certification for IT staff

40,000 20,000 20,000 40,000

ICT Workshop 10,000 5,000 5,000 10,000

PILLAR 6: HOST COUNTRY AGREEMENT/LEGAL

42,250 2,500 14,750 16,250 8,750 42,250 2,500 0 39,750 0

Translate UN’s privileges and immunities and working methods to local languages, printing and dissemination

6,000 6,000 6,000

Sensitization Workshop

18,750 6,250 6,250 6,250 18,750

Impact assessment on sensitization workshop

10,000 10,000 10,000

Consultative seminar for UN HR Manager’s on staff immunity and privilege

500 500 500 0

Two retreats with key government counterpart

5,000 2,500 2,500 5,000

Prepare document on UN staff privilege and immunity

2,000 2,000 2,000 0


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OMT SUPPORT & COORDINATION FOR COMMON OPERATIONS

835,600 163,000 209,000 231,800 231,800 835,600 292,400 57,400 485,800 0

Consultancy for development of BOS2.0

22,000 22,000 22,000 0

BOS2.0 validation retreat

7,000 7,000 7,000 0

BOS2.0 Printing 6,000 6,000 6,000 0

Capacity development training for RCO staff supporting OMT (CIPS III & IV)

6,400 3,200 3,200 3,200 3,200

Capacity development training for 3 OMT members

18,000 18,000 18,000

Other OMT trainings (retreat)

3,000 1,000 1,000 1,000 3,000

BOS Implementation staff requirement (P2, Common Operation Specialist)

554,000 70,000 132,000 176,000 176,000 202,000 352,000

BOS Implementation staff requirement (SB4, Common Operation Associate)

109,600 27,400 27,400 27,400 27,400 32,400 22,400 54,800

OMT Legal officer (SB4)

109,600 27,400 27,400 27,400 27,400 54,800 54,800

TOTAL 1,780,930 420,880 552,650 381,450 425,950 1,780,930 444,600 198,580 1,037,750 100,000

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AWP BOS Outcome Area 1: Common Procurement Services Pillar for BOS 2.0 CycleCoordination Mechanisms: OMT Working Group on Common Procurement

Estimated Budget USD 330,180

Budget Gap USD 144,000

BOS Outcome 1 By 2020, capacities of procurement staff strengthened to undertake cost effective and quality enhanced procurement

BOS Outcome 1 Indicators

Cost Percentage of UN spending channeled through joint procurement arrangement

Quality Proportion of professionally qualified procurement staff as a percentage of total procurement staff (took CIPS training))

BOS Output 1.1 UN Agencies in Ethiopia have established 28 inter-Agency LTAs for identified categories of goods and services

BOS Output 1.1. Indicators

Baseline 2014

Target June 2017 (Y1)

Target June 2018 (Y2) Target June 2019 (Y3)

Target June 2020 (Y4) Total target in BOS 2.0


0% >98% >98% >98% >98%

Estimated material cost saving with a target of 7% discount from additional joint LTAs

USD 38.8 million (2014 combined procurement cost of the UN )

USD 1,515,464

USD 2,717,525 0 USD 2,717,525 USD 9,668,039

Estimated transaction cost saving from use of additional joint LTAs

USD 6,635,875 (total cost of separate LTAs developed & renewed by the individual UN Agency)

USD 412,890 USD 1,156,092 USD 1,156,092 USD 1,156,092 USD 3,881,166

Key Activities

Key activities End year status of activities

(Achieved, In

Progress, Not

started)

Lead AgencyDeadline

Budgetary Framework

Source of fund Estimated Budget amount in USDFunded amount in USD

Budget Gap in USD

End year expenditure (actual) in USD

Facilitate the following inter-agency procurement categories


UNDP June 2017 Inter-Agency Contribution (Each UN Agency will cover the advertisement cost to create joint LTA by its own)

1,500 (advertisement

cost )

0 1,500

Stationery including Printing Paper UNDP June 2017 “ 1,500 0 1,500

Uniform / clothing UNDP June 2017 “ 1,500 0 1,500

Electrical equipment CP WG June 2017 “ 1,500 0 1,500

Office Equipment including Furniture CP WG June 2017 “ 1,500 0 1,500

Hotel and Conference Facilities UNDP June 2017 “ 1,500 0 1,500

Transportation Rental Car UNOPS June 2017 “ 1,500 0 1,500

Printing Services UNICEF June 2017 “ 1,500 0 1,500

Security Guard Services UNICEF June 2017 “ 1,500 0 1,500

Annex 8: BOS 2.0 (July 2016 - June 2020) Annual Work Plan (AWP)


113

Vehicle Insurance UNDP June 2017 “ 1,500 0 1,500

Catering Service UNECA June 2018 “ 1,500 0 1,500

Communication and production (video)

UNICEF June 2018 “ 1,500 0 1,500

Custom Clearance (Company) WFP June 2018 “ 1,500 0 1,500

Advertising Services UNICEF/WFP June 2018 “ 1,500 0 1,500

Generator & Electro Mechanical Services

UNHCR June 2018 “ 1,500 0 1,500

Maintenance (IT Equipment/ photocopier)

UNICEF June 2018 “ 1,500 0 1,500

Vehicle Maintenance WFP June 2018 “ 1,500 0 1,500

Postal and Currier Services including Cargo

WFP/UN ECA

June 2018 “ 1,500 0 1,500

Messenger Services (Company) UNICEF June 2018 “ 1,500 0 1,500

Tire and spare parts WHO June 2018 “ 1,500 0 1,500

Event management UNDP June 2018 “ 1,500 0 1,500

Cleaning services (Company) UNECA June 2018 “ 1,500 0 1,500

Temporary Driving Services (Company)

UNICEF June 2018 “ 1,500 0 1,500

Transportation Rental Trucks IOM June 2018 “ 1,500 0 1,500

Transportation Rental Bus IOM June 2018 “ 1,500 0 1,500

Warehouse/ Storage Rental WFP June 2018 “ 1,500 0 1,500

Translations/ Interpretation UNDP June 2018 “ 1,500 0 1,500

Technical Consultancies and Training Services

UNICEF June 2018 “ 1,500 0 1,500

Finalize Regional Hotel LTA, consultant roster and event management.

RCO & CP WG

June 2017 NA 0

Maintain/regularly update and monitor local LTAs and regional LTAs database on the IKM platform

RCO & CP WG

June 2017-June 2020

NA 0

Finalize Memorandum of Understanding (MoU) on Common procurement which will outline the common procurement modalities, rules and protocols to be followed by UN Agencies

RCO & CP WG

June 2017 NA 0

BOS Output 1.2. The capacity of UN procurement staff and suppliers/vendors is strengthened to improve procurement process


Baseline 2014



Target June 2020 (Y4) Total Target in BOS 2.0

No. of joint procurement training, workshops or seminars conducted

2 4 3 3 1 11

Satisfaction (%) based on annual satisfaction survey on the training, workshops or seminars conducted

0% >95% >95% >95% >95%

Key Activities


(Achieved, In

Progress, Not

started)

Lead Agency

Deadlines Budgetary framework

Source of fund Estimated Budget amount

in USD

Funded amount in USD

Budget Gap in

USD

End year expenditure (actual) in USD

Organize 2 Business Seminars for two days with 30 participants in each day for suppliers/vendors (Qty. 2)

RCO & CP WG

June 2018 & June 2019

Inter-Agency Contribution

6,000 (3,000 per year)

0 6,000

Organize CIPs II training to 25 UN procurement/programme staff

RCO & CP WG

June 2018 Inter-Agency Contribution

45,000 45,000

Organize CIPs III training in 2017 and 2019 for UN procurement staffs

RCO & CP WG

June 2017 & June 2019


90,000 45,000 45,000

BOS 2.0 2016-2020

114

Organize CIPS IV training for UN procurement staff

RCO & CP WG


45,000 0 45,000

Organize Ethics training for UN procurement staffs

UNHCR & CP WG


1,500 0 1,500

Organize annual common procurement retreat in Addis Ababa to discuss on progress, issues, challenges and action plan (Qty.4))

RCO & CP WG

June2017- June 2020

DOCO 6,000 (1,500 each)

1,500 4,500

Collaborate with Chamber of Commerce and pay subscription fee to use Chamber’s supplier database for tenders and rent of venue for capacity development

UNDP June 2017 DOCO 5,000 5,000

Recruit national consultant to provide support with creation, conduct and evaluation of tenders for joint initiatives –IC contract for 8 months

RCO & CP WG

June 2017 & June 2018


9,000 9,000

BOS Output 1.3. A regional LTA database is developed and accessible to BOS implementing countries in Southern and East Africa (Kenya, Uganda, Ethiopia, Malawi, Rwanda, Tanzania)


Baseline 2014




Established a regional LTA database

No Yes Yes Yes Yes


0 6 5 TBD 11

Key Activities


(Achieved, In

Progress, Not

started)

Lead Agency

Deadlines Budgetary Framework

Source of fund Estimated Budget amount

in USD


Budget Gap in

USD

End of year expenditure (actual) in USD

Consultation fee for International and National Common Procurement consultants

RCO/CP WG June 2017 DOCO 81,000 81,000

Visit in 5 BOS implementing countries in East Africa (Kenya, Rwanda, Uganda, Tanzania and Malawi) and Dubai

RCO/ CP WG June 2017 DOCO 23,000 23,000

Visit in 5 regions (Mekelle, Jijiga, Gambella, Bahir-Dar and Hawassa) in Ethiopia for vendor mapping


Consultation fee for ICT Expert for creating the regional LTA database on the IKM Platform


Conduct a regional level workshop in Addis Ababa for the representative of the 5 BOS implementing countries in East Africa to discuss about creation of regional LTA database, including joint LTAs.The CPWG will cover travel cost of participants as well as the venue



115

AWP BOS Outcome Area 2: Common Finance Services Pillar for BOS 2.0 CycleCoordination Mechanisms: OMT Working Group on Common Finance



BOS Outcome 2 By 2020, UN Agencies in Ethiopia have realized cost saving from financial transaction


Cost Percentage of saving as compared to total expenditure

Quality Proportion of staff with a professional accountancy qualification as a total finance staff

BOS Output 2.1 UN Agencies in Ethiopia established a common banking service agreement with bank to get cost reduction and enhanced quality service


Baseline 2014


Target June 2019 (Y3) Target June 2020 (Y4) Total target in BOS 2.0

Estimated cost saving from use of common banking service



0 >98% >98% >98% >98%

Key Activities


(Achieved, In Progress, Not

started)

Lead Agency

Deadline Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD

End of year expenditure

(actual) in USD

Conduct banking survey and data analysis

RCO/Finance

WG


1,500 0 1,500

Finalize and sign Service Level Agreement with banks

Finance WG

June 2018 NA 0

BOS Output 2.2. UN Agencies, funds, programmes and specialized Agencies in Ethiopia harmonized foreign exchange rate dealings to obtain the most suitable rate


Baseline 2014



Estimated cost saving by harmonizing foreign exchange rate

USD 0 USD 4 millions USD 4 millions

USD 4 millions USD 4 millions USD 16 millions

No. of UN Agencies participated for harmonizing foreign exchange rate

0 8 10 12 13 13 (Cumulative figures are applied )

No. of UN Finance Staff trained on financial management

0 10 10 20

Key Activities



started)

Lead Agency

Deadline Budgetary Framework End of year expenditure

(actual) in USD

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD

Analyze and align each bank agreement with UN Agencies

RCO/Finance

WG

June 2018 NA 0

BOS 2.0 2016-2020

116

Negotiate the revision on new directives of NBE (National bank of Ethiopia) in 2014 in order to get better exchange rate for the UN

Finance WG

June 2018 NA 0

Facilitate training on financial management for UN finance staff from Chartered Institute of Public Finance and Accountancy (CIPFA)

Finance WG

June 2018 & June

2020


74,000 0 74,000

BOS Output 2.3. UN Agencies, funds, programmes and specialized agencies conducted a common VAT reclaim and reduced the loss of fund from uncollected VAT


Baseline 2014



A common VAT reclaim of UN Agencies is conducted on a yearly basis

No Yes Yes Yes Yes

No. of UN Agencies participated in the common VAT reclaim

0 8 10 12 13 13 (Cumulative figures are applied )

Key Activities



started)

Lead Agency

Deadline Budgetary Framework End of year expenditure

(actual) in USD

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD

Identify the cause for uncollected VAT and collect VAT reclaim of different UN Agencies

RCO/Finance

WG

June 2017 NA 0

Negotiate with relevant GOE authorities in order to exempt VAT for the UN based on (Host Country Agreement) HCA

Finance WG

June 2017 NA 0

AWP BOS Outcome Area 3: Harmonized Approach to Cash Transfer (HACT) Pillar for BOS 2.0 CycleCoordination Mechanisms: OMT Working Group on HACT



BOS Outcome 3 By 2020, HACT framework is fully implemented by all UN Agencies providing funds and their Implementing Partners (IPs)


Cost Percentage of saving as compared to total expenditure

Quality Proportion of HACT framework implementing UN Agencies as compared to total UN Agencies

BOS Output 3.1 UN Agencies have conducted joint micro-assessment for shared IPs

BOS Output 3.1. Indicators Baseline 2014



Estimated cost saving by conducting joint micro-assessment through a lead Agency



0 6 6 6 6 24

Key Activities



started)

Lead Agency


Source of fund Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD


117

Identify list of shared IPs for joint micro-assessment

UNICEF June 2018 - June 2020

NA 0

Carryout joint micro-assessment (24) and update the IKM platform

UNICEF June 2018 - June 2020


54,000 (2,250 for

each IP)

0 54,000

BOS Output 3.2. UN Agencies have conducted joint HACT audit for shared IPs





0 6 6 6 6 24

Estimated transaction cost saving by conducting joint HACT audit for shared IPs


Key Activities



started)

Lead Agency



amount in USD

Funded in USD

Budget Gap in

USD


(actual) in USD

Identify list of shared IPs for joint HACT audit

UNICEF, UNDP, UNFPA

June 2018 - June 2020

NA 0

Identify the third party service provider and sign Agreement

UNICEF, UNDP, UNFPA

June 2018-June 2020

NA 0

Conduct joint HACT audit (24) and update the IP database on the IKM platform

RCO, UNICEF, UNDP UNFPA

June 2018-June 2020


36,000 (1,500 for

each IP)

0 36,000

BOS Output 3.3. The capacities of UN staff and IPs on HACT and Spot check performance is enhanced




Estimated cost saving by conducting joint capacity development training for IPs


No of IPs covered by joint capacity development training on HACT

0 6 6 6 6 24

No. of joint capacity development training provided on HACT and Spot check performance to UN staff and IPs

1 on HACT 2 (1 on HACT & 1 on Spot check performance)

2 (1 on HACT & 1 on Spot check

performance)



performance)


performance)

Key Activities



started)

Lead Agency



amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Identify capacity gaps in IPs UNICEF, UNDP, UNFPA

June 2017-June 2020

NA 0

Develop plan to address the capacity gap and implement capacity building training on HACT and risk assurance activities

UNICEF, UNDP, UNFPA

June 2017-June 2020

NA 0

Provide capacity development training on HACT & financial management to IPs (24 shared IPs) for two days and 50 UN staff per year

UNICEF, UNDP, UNFPA

June 2017-June 2020


74,500 2,500 72,000

BOS 2.0 2016-2020

118

Prepare a simplified HACT guidance for IP UNICEF, UNDP, UNFPA

June 2017 NA 0

Support the mid-term review of UNDAF by providing information on HACT issues and progress

UNICEF, UNDP, UNFPA

June 2018 NA 0

BOS Output 3.4. A joint assurance plan is developed for shared IPs






No of joint spot checks conducted

0 1 1 1 1 4

Key Activities



started)

Lead Agency



amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Compile shared IPs data from all HACT implementing UN Agencies & develop joint Risk Assurance Plan for shared IPs

UNICEF June 2017 NA 0

Organize and conduct joint spot check HACT WG June 2017-June 2020

NA 0

BOS Output 3.5. HACT database for shared IPs is regularly updated and further developed




No of IPs uploaded on the HACT database

71 20 20 20 20 151

Key Activities



started)

Lead Agency



amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Update and further develop IP database for HACT

HACT WG June 2017-June 2020

NA 0

BOS Output 3.6. The UNCT has conducted HACT Macro-Assessment together with Ministry of Finance and Economic Commission (MoFEC)




Conducted a HACT Macro-assessment during BOS 2.0


Key Activities



started)

Lead Agency



amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Establish a task force to work with the Ministry of Finance and Economic Commission (MoFEC)

HACT WG June 2017 NA

Conduct a review of the existing Public Financial Management (PFM) assessment and draw conclusion on the management of cash transfer

HACT WG June 2017 NA

Conduct a HACT Macro-assessment HACT WG June 2017 Inter-Agency Contribution

5,000 5,000

Provide comments on PIM revision HACT WG June 2017 NA


119

AWP BOS Outcome Area 4: Human Resources and Common Premises Services Pillar for BOS 2.0 CycleCoordination Mechanisms: OMT Working Group on Human Resources and Premises



BOS Outcome 4 By 2020, recruitment & selection, learning & development aspects of the Human Resources function of UN Agencies in Ethiopia are harmonized


Cost Average elapsed time(working days) from vacancy advertisement to the acceptance of an offer

Quality Cost of joint learning and development activity as percentage of total expenditure

BOS Output 4.1. Joint advertisement and joint recruitment staff modality is operationalized among UN Agencies in Ethiopia


Baseline 2014 Target June 2017 (Y1) Target June 2018

(Y2) Target June 2019 (Y3) Target June 2020 (Y4) Total target in BOS 2.0

No. of staff recruited by joint advertisement and joint recruitment modality

0 25 25 25 25 100

Estimated transaction cost saving by conducting joint advertisement and joint recruitment modality


Key Activities

Key activities

End year status of activities


started)

Lead Agency Deadline

Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Harmonize the HR policies of UN Agencies in staff recruitment HR WG June 2017 NA 0

Facilitate joint advertisement and recruitment staff HR WG June 2018 - June

2020Inter-Agency Contribution

1,200 (400 per advertisement) 0 1,200

BOS Output 4.2. A common effective learning programme is established among UN Agencies in Ethiopia




No. of training conducted through joint learning programme

0 2 2 2 2 8




0 10 10 20

Key Activities

Key activities



started)


Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Identify list of training and conduct joint learning programme HR WG June 2017-June

2020 NA 0

Conduct CBI training for two weeks for 40 UN staffs per year using certified trainer from the UN(Qty.4)

UNECA/ UNICEF

June 2017 & June 2020


16,000 (8,000 per training) 8,000 8,000

BOS 2.0 2016-2020

120

Facilitate the HR managers of UN agencies for a capacity development training on professional certificate on human resources

HR WG June 2018 & June 2020

Inter-Agency Contribution 20,000 0 20,000

Conduct annual induction program for new UN personnel HR WG June 2018 &

June 2020Inter-Agency Contribution

4,500 (1,500 per year) 0 4,500

BOS Output 4.3. HR Roster of Local Consultant and Support Service Staff is developed and accessible to all UN Agencies in Ethiopia




No. of consultants and support service staff recruited from the HR Roster of consultant

0 65 65 65 65 260

Estimated transaction cost saving from the use of HR Roster of consultants and support service staff


Key Activities

Key activities



started)


Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Develop HR Roster of Local Consultants and Support Service Staff

RCO & HR WG June 2017 Inter-Agency

Contribution

6,000 (consultancy

fee)6,000

Upload the HR Roster of Local Consultants and Support Service Staff on the IKM platform

RCO June 2017 Inter-Agency Contribution 8,200 8,200

Maintain and update regularly the HR Roster of Local Consultants and Support Service Staff on IKM platform

RCO/HR WG

June 2017 - June 2020 NA 0

Facilitate recruitment of Local Consultants and Support Service Staff from the HR Roster

RCO/HR WG

June 2017 - June 2020 NA 0

BOS Output 4.4.

A reward framework is established to give recognition for individuals showing outstanding achievement in the OMT and OMT WG’s work




A reward framework is established No Yes Yes Yes Yes Yes


0 25 25 25 25 100

Key Activities

Key activities



started)


Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Establish, review and revise criteria for each category of awards HR WG June 2017 - June

2020 NA 0

Procure award items (medals, trophies, certificates) HR WG June 2017 - June

2020Inter-Agency Contribution 7,000 1,000 6,000

Review nominations and select recipients for each category of awards

HR WG June 2017 - June 2020 NA 0

Organize ceremony and handover rewards HR WG June 2018 - June

2020 NA 0


121

BOS Output 4.5.

The UN Agencies, Funds, Programmes and Specialized Agencies harmonized Local Consultancy Rate and internship modality among themselves




Local Consultancy Rate among UN Agencies is harmonized


Harmonized Internship modality among UN Agencies


Key Activities

Key activities



started)


Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Collect data on consultancy rate and internship payment from UN Agencies

HR WG June 2017 NA 0

Finalize harmonization of Local Consultancy rate RCO &


Finalize harmonization of Internship payment and modality RCO &


BOS Output 4.6. The capacity of Youth in Ethiopia is enhanced to ensure that they are included at levels of decision making




Provided induction training to the Youth in Ethiopia


Key Activities

Key activities



started)


Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Support Mainstreaming Youth in the work of UN RCO &

HR WGJune 2017 -June

2020 NA 0

BOS 2.0 2016-2020

122

AWP BOS Outcome Area 5: Common BCM & ICT Services Pillar for BOS 2.0 Cycle Coordination Mechanisms: OMT Working Group on BCM & ICT

Estimated Budget

USD 220,000


BOS Outcome 5 By 2020, the UNCT has strengthened organizational resilience and business continuity services

BOS Outcome 5 Indicator

Quality No. of disruption to business operation in the event of disaster

BOS Output 5.1. Information and Knowledge Management (IKM) platform is developed and accessible to all UN Agencies in Ethiopia


Baseline 2014




IKM platform is developed and accessible to all UN Agencies


Key Activities



started)

Lead Agency



amount in USD


Budget Gap in

USD


in USD (actual)

Develop Information and Knowledge Management platform, launch and make accessible to all UN Agencies

RCO /BCM & ICT WG

June 2017 NA 0

Training to UNDP staff on Maintain IKM platform

RCO June2018 Inter-Agency Contribution

6,000 6,000

Develop Security Management Component on the IKM platform

OMT chairs & UNDSS


4,000 4000

Further develop the IKM platform with required specifications and component for all DaO pillars including improvements to the IKM dashboard

UNECA June 2019 Inter-Agency Contribution

15,000 (Consultancy

fee)

15,000

BOS Output 5.2. A joint/harmonized Business Continuity Management Framework is developed and operationalized both in Addis Ababa and field offices





Joint/harmonized BCM Framework is developed and operationalized



0 1 1 1 3


1 2 2 2 2 8

Key Activities



started)

Lead Agency



amount in USD


Budget Gap in

USD


(actual) in USD

Sign two MoUs on Business Continuity: i) formalizing 4 UN locations as alternate recovery sites; and ii) formalizing alternate recovery site and concentration point.

UNECA June 2017 NA

Conduct Business Continuity and Information Technology Disaster Recovery assessment for three months

UNECA & UNOAU

Jun-18 Inter-Agency Contribution

21,000 (consultancy

fee)

21000


123

Purchase Business Continuity and Organizational Resilience software for all the UN

UNOAU June 2018 DOCO 100,000 100,000

Organize Crisis and incident response management training for senior/top level managers and critical staff (BCI level; 2 groups of 15 people each)

UNOAU June 2017 Inter-Agency Contribution

4,000 4000

Conduct Capacity development training on BCM certification (20 staff) and Microsoft certification for IT staff (20 staff)

BCM & ICT WG

June 2018 & June 2020


40,000

40,000

BOS Output 5.3. A common/shared ICT infrastructure including shared network, common telephony and internet services is developed and operationalized for UN Agencies









Key Activities



started)

Lead Agency

Deadlines Budgetary Framework


amount in USD


Budget Gap in

USD


(actual) in USD

Establish a common telephone system and directory


10,000 10,000

Establish a common internet service UNECA June 2017 Inter-Agency Contribution

10,000 10,000

BOS Output 5.4. A common IT data center for identified critical services is established to avoid loss of critical data and ensure continuity of important activities.





Established One UN IT data center

No Yes Yes Yes Yes

No. of UN Agencies participated in One UN IT data center

0 13 13 13 13 13

No. of ICT workshop conducted

0 2 2 2 2 8

Key Activities



started)

Lead Agency


Source of fund Estimated Budget in

USD

Funded in USD

Budget Gap in

USD


(actual) in USD

Identify location for data center UNDP/UNECA

June 2017 NA

Develop IT data center UNECA June 2020 Inter-Agency Contribution

TBD

Conduct the ICT workshop for IT staff (30) of all the UN Agencies


10,000 10,000

BOS 2.0 2016-2020

124

AWP BOS Outcome Area 6: Host Country Agreement/Legal Pillar for BOS 2.0 CycleCoordination Mechanisms: OMT Working Group on HCA/Legal



BOS Outcome 6 By 2020, all UN Agencies, Funds and Programmes in Ethiopia have common Host Country Agreement with supplemental agreement


Quality Proportion of UN Agencies participated in the common Host Country Agreement

BOS Output 6.1. The awareness of federal & regional government officials on the UN, its working methods as well as its privileges and immunities is enhanced

BOS Output 6.1. Indicators Baseline 2014 Target June 2017 (Y1)




No. of sensitization workshops conducted on immunities and privileges for government officials

5 3 3 3 3 17

No of regions that received information materials on the UN’s working methods and legal status prepared in their local language

0 2 2 2 2 8

No. of federal and regional government Agencies that participated in the sensitization workshop on UN’s working methods and legal status

5 regional Agencies





6 regional & 6 federal Agencies

Key Activities



started)

Lead Agency Deadlines Budgetary Framework

Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Prepare sensitization documents on immunities and privileges of UN Agencies and their staffs and submit to the government officials

HCA WG June 2018 NA 0

Translate the relevant legal documents on UN’s privileges and immunities and working methods to local languages, printing and dissemination to relevant federal and regional government departments

HCA WG June 2018 Inter-Agency Contribution

6,000 0 6,000

Conduct workshop in Addis Ababa and field locations

HCA WG June 2018-June 2020


18,750 (6,250 each)

0 18,750

Conduct one impact assessment on the sensitization workshops conducted


10,000 0 10,000

BOS Output 6.2. Supplemental Agreements of UN Agencies, Funds and Programmes are prepared




Target June 2020 (Y4) Total Target in BOS 2.0

Prepared supplemental agreements to UN Agencies


Provided technical support on UN Privileges and immunities to OMT/Agencies


Key Activities



started)


Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Draft supplemental Host Country Agreement for UN Agencies



125

Provide technical support to UNCT for negotiations with the host government and support UN organizations on legal issue


NA 0

Resolve legal issues to reduce infringements of existing HCAs


NA 0

BOS Output 6.3. The knowledge of UN officials and experts on the privileges and immunities of the UN and its staff is enhanced





Organized regular briefing to UN staffs on a yearly basis


Conducted consultative seminar for UN organizations HR managers on staff immunity and privileges


No. of UN staff members participated in the sensitization workshops on legal status of UN staff

0 50 50 50 50 200

Key Activities



started)


Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Prepare a document on UN Staff’s privileges and immunities


2,000 2,000

Provide orientation or regular briefing together with HR WG to UN Staffs on a yearly basis


NA

Conduct consultative seminar for UN organizations’ HR managers on staff immunity and privileges (half a day training for 17 HR Managers)


500 500

BOS Output 6.4. UNCT availed legal support in host country negotiation and deliberations on tax, customs, immigrations, communications and other legal affairs.





No. of retreat conducted with key government counter parts

0 1 1 2

Provided support to the UNCT in the negotiation to obtain appropriate banking service as well as VAT exemption


Key Activities



started)


Source of fund

Estimated Budget in

USD

Funded in USD

Budget Gap in

USD


(actual) in USD

Prepare legal document for the host country agreement negotiation


Establish working relationship between UNCT and different Ministries for the dissemination of core instruments on UN immunity and privileges (organize two retreat with key government counterparts in four year cycle)

HCA WG June 2018 & June 2020


5,000 0 5,000

BOS 2.0 2016-2020

126

AWP: OMT Support & Coordination for Common Operations for BOS 2.0 Cycle

Coordination Mechanisms: OMT Chairs and RCO



BOS Output Enhanced the UNCT’s capacity to coordinate Inter-Agency operations

BOS Output Indicators Baseline 2014



No. of staffs who participated in a capacity development workshop on RBM

67 50 50 50 50 200

No. of OMT annual reports prepared and shared with the UNCT

1 1 1 1 1 4

No. of OMT retreat conducted

1 1 1 1 1 4

Key Activities



started)

Lead Agency


Source of fund

Estimated Budget

amount in USD

Funded amount in

USD

Budget Gap in

USD


(actual) in USD

Finalize the Development of BOS2.0 (hiring the BOS 2.0 Consultant for 5 months)

OMT Chairs & RCO

June 2017 DOCO 22,000 22,000 0

Conduct the BOS 2.0 validation retreat and finalize the BOS2.0

OMT Chairs & RCO

June 2017 DOCO 7,000 7,000 0

BOS 2.0 Printing OMT Chairs & RCO

June 2017 DOCO 6,000 6,000 0

Conduct the Capacity development training (CIPS III training) for RCO staffs that are supporting BOS/OMT

OMT Chairs June 2017 Inter-Agency Contribution

3,200 3,200 0

Conduct the Capacity development training (CIPS IV training) for RCO staffs that are supporting BOS/OMT

OMT Chairs June2018 Inter-Agency Contribution

3,200 0 3,200

Capacity development training for 3 OMT members

OMT Chairs June 2018 Inter-Agency Contribution

18,000 18,000

Organize four OMT meetings and retreat, support Working Groups, prepare OMT annual work plan including information on the progress of BOS implementation and status of existing common services

OMT Chairs & OMT

Working Group Chairs

June 2018 - June 2020


3000 (1,000 each)

3,000

Salary Budget for BOS 2.0 cycle

Salary for Common Operation Analyst/Specialist (P2) for BOS2.0 cycle

OMT Chairs and RCO

June 2017 - June 2020


554,000 202000 352,000

Salary for Common Operation Associate (SB4) for BOS2.0 cycle

OMT Chairs and RCO

June 2017 - June 2020

Inter-Agency Contribution & DOCO

109,600 54800 54,800

Salary for OMT Legal Officer (SB4) for BOS2.0 cycle

OMT Chairs and RCO

June 2017 - June 2020


109,600 54800 54,800


127

Budget Summary of BOS 2.0 Cycle (July 2016 - June 2020)Common Service Pillars Estimated

budget amount in USD


Budget Gap in USD

Pillar 1: Common Procurement Services 375,180 231,180 144,000

Pillar 2: Common Finance Services 75,500 0 75,500

Pillar 3: HACT 169,500 7,500 162,000

Pillar 4: Human Resources and Common Premises Services 62,900 23,200 39,700

Pillar 5: Common BCM & ICT Services 220,000 29,000 191,000

Pillar 6: HCA/Legal 42,250 2,500 39,750

OMT Support & Coordination for Common Operations 835,600 349,800 485,800

Total 1,780,930 643,180 1,137,750