CM(2008)173 19 November 20081
1045 Meeting, 14 January 2009
11 Administration and Logistics
11.3 Draft Resource Management and Mobilisation Strategy for the Council of Europe
Document prepared by the Directorate of Strategic Planning
Summary of recommendations 2
A. MANAGING AND MOBILISING RESOURCES MORE EFFECTIVELY 3
Mix of financing mechanisms 4
Develop Donor relationships 4
· Potential donors and partners
· Project-donor matching
· Coordination and development of donor relations
B. FRAMEWORK FOR PROJECT SELECTION 5
· Alignment of objectives
· Project priority
· Implementation capacity
· Reporting record
· Evaluation and impact assessment
C. PROCESS STAGES 6
· Identification of needs
· Identification of external sources of funding
· Targeted fundraising plans
· Coordinated fundraising and contract negotiation
· Project implementation
· Reporting and evaluation
· Donor satisfaction
D. COMMUNICATION AND PRESENTATION ASPECTS 7
E. MANAGEMENT STRUCTURES 8
F. CONCLUSIONS 9
1. The Council of Europe needs a coherent, organisation-wide resource management and mobilisation strategy. The Organisation’s core funds are insufficient to finance identified needs as defined by the Third Summit Action Plan. The strategy aims, inter alia, to consolidate the volume of Joint Programmes with the European Commission following the significant increases over recent years in its initial phase and to increase extra-budgetary contributions from other sources by some 20% by the end of 2010. At the same time, the external funding should remain aligned with the priorities of the Council of Europe and take into account needs for human resources and overhead costs required for successful implementation.
2. Meeting those challenges requires an innovative and strategic approach to best take advantage of the mix of mechanisms employed to finance the Programme of Activities. A more efficient mix can be achieved by embedding the management and mobilisation of resources in an overall strategy for multi-year planning including appropriate budgeting, programming and human resources and evaluation.
3. This document builds on previous work to define an organisation-wide resource management and mobilisation strategy, examines various options and proposes a number of measures to better support the achievement of the Organisation’s long term objectives. It is an important element of enhancing the added value of the Council of Europe in the medium-term.
4. Guidelines for the implementation of the Resource Management and Mobilisation Strategy (RMMS) approved by the relevant bodies will complement this document after its adoption.
SUMMARY OF RECOMMENDATIONS
5. The recommendations set out below cover the key elements of the proposed strategy for the management and mobilisation of external resources, to meet the Organisation’s present and future needs:
5.1. Develop an adequate and innovative mix of financing instruments for various purposes:
· Develop integrated budgetary and programming processes;
· Seek external resources when priority objectives cannot be fulfilled with Ordinary Budget funding;
· Initiate novel approaches to solicit external resources;
· Identify donor priorities and requirements through researching sources of funding;
· Submit targeted project proposals that match donors’ priorities;
· Coordinate and maintain close cooperation with major donors;
· Encourage private sector partnerships to complement public sector cooperation.
5.2. Create a framework for projects to be funded through external resources:
· Plan all projects through an integrated process, irrespective of the source of funding, to ensure alignment of objectives, and taking account of the absorption capacity of the beneficiaries and/or implementing partners;
· Design all project proposals in accordance with document CM(2006)101 final, Establishing criteria for projects;
· Consider the implementation capacity and reporting record of the unit requesting the project;
· Provide for appropriate monitoring and evaluation in the project design;
· Ensure that project budgets provide for the staff and operational resources necessary for project implementation.
5.3. Define the process stages from needs assessment to donor satisfaction:
· Design projects that match identified needs with the Council of Europe's capacities for implementation (organisation-wide);
· Use donor profiling to identify potential donors, their funding capacity and allocation criteria, matching individual programmes/projects or project themes with identified resources;
· Develop fundraising plans for specific programmes/projects, targeted to donors with matching interests;
· Coordinate fundraising efforts with implementing entities and focus on targeted donors;
· Promote the use of Council of Europe standard contracts and coordinated negotiation procedures;
· Develop monitoring procedures to ensure project implementation and reporting in accordance with contractual agreements, and to ensure donor satisfaction;
· Develop and promote the use of a standard reporting (narrative and financial) and evaluation framework for all projects, irrespective of the source of funding.
5.4. Improve the communication of proposals and results to donors:
· Align the presentation of programme/project proposals using a standard format in line with Project Management Methodology (PMM)
· Ensure endorsement by the Committee of Ministers of project proposals for external funding, as part of the regular approval process for the Programme of Activities
· Communicate project proposals to potential donors in an attractive format, making use of media tools (including web-based dissemination tools)
· Report implementation results to donors in a timely manner
5.5. Create management structures required for the implementation of the RMMS, in particular:
· Create a “one-stop shop” service for all stakeholders with the objective of coordination of project design, donor matching, contract negotiation, reporting and evaluation;
· Provide support and training to decentralised entities;
· Entrust the coordination of external resources to the External Resources Unit (ERU), with appropriate resources devoted for this purpose;
· Provide for the cost of the necessary framework for the management of extra-budgetary activities by an increased fixed-rate deduction on external funding where there is a demonstrable relationship between supporting activities and the externally funded projects.
5.6. Adopt a roadmap for the implementation of the above recommendations, including bi-annual objectives
A. MANAGING AND MOBILISING RESOURCES MORE EFFECTIVELY
- Core funding from obligatory contributions is insufficient to meet present and future needs of the Council of Europe.
- The annual total of member states’ voluntary contributions declined by over 50% between 2001 and 20062. - However, the total volume of European Commission funding through joint programmes is increasing.
- General appeals for additional resources often disregard individual donors’ priorities which in turn leads to donor dissatisfaction.
- The main issues to be addressed by a new resource mobilisation approach are therefore the mix of mechanisms and the relationship with donors.
In the context of a zero-real growth policy for the Ordinary Budget, supported by a large number of member states, the focus must be on additional resources (joint programmes, voluntary contributions and public/private partnerships). At the same time, additional efforts have to be made to improve planning, budgeting and administration of resources. This requires new approaches towards a mix of financing options and special “packaging” of separate but linked interventions by several donors (e.g. prison reform, containing training and infrastructure elements), as well as procedural and structural measures. Alternatively, programmes would have to be scaled down, thus hampering the achievement of the Organisation’s long-term goals.
8. Recommendations for sustainable and effective management and mobilisation of resources:
8.1. Mix of financing mechanisms
8.1.1 Internal resources – ordinary budget
Develop integrated budgetary and programming processes ensuring that core activities are primarily funded by the Ordinary Budget.
8.1.2 External resources
Seek external resources when priority objectives cannot be fulfilled with Ordinary Budget funding. Propose suitable unfunded priority projects to external partners that can bring added-value (financial and non-financial) to the projects. Contributions in kind that have an added value (such as meeting facilities, seconded staff) generally reduce the financial cost of a project and are most welcome. For the purposes of accounting and reporting, voluntary contributions refer to financial contributions made to the Council of Europe bank account.
8.1.3. Innovative approaches
Explore and initiate innovative approaches to generate additional resources (e.g. fundraising events, new partnerships and long-term alliances, selling of selected products and services, and combinations of grants and loans). Enhanced co-operation with the Council of Europe Development Bank should be examined, including the Human Rights Trust Fund.
Encourage private sector partnerships to complement public sector co-operation. Propose sponsorship of suitable activities (such as public awareness-raising campaigns, implementation of specific conventions) to commercial enterprises. Define the acceptable limits of such partnerships in advance to ensure that partner organisations share the goals of the Council of Europe are not involved in unethical activities, and do not unduly influence the nature and implementation of the project.
8.2. Develop Donor Relationships
- Donor relations are fragile. They must be developed, monitored and nourished. Confidence has to be maintained or, in some cases, regained.
- Different needs of individual donors need to be taken into account.
Recommendations to develop Donor Relationships:
8.2.1. Potential donors and partners
Identify donor priorities and requirements through researching sources of funding. Encourage long-term partnerships (multi-year, taking into account different needs of donors and the input from decentralised entities including field offices).
8.2.2. Project-donor matching
Submit targeted project proposals that match donors’ priorities.
Avoid general requests for funding that can create confusion about the Council of Europe’s priorities, and may be resented by uninterested donors.
Encourage targeted resource mobilisation plans for major programmes requiring external resources (action plans, campaigns).
8.2.3. Coordination and development of donor relations
Coordinate and maintain regular contacts with major donors. Encourage contacts with major partners (in particular permanent representations, Ministries of Foreign Affairs, specialised ministries and development agencies of member and observer states, and the European Commission), annual bilateral consultations and multi-year framework agreements using standard contracts. At the same time, maintain and develop specialised partnerships in different sectors.
Overall coordination of donor relations is necessary in order to ensure Organisation-wide coherence. Existing channels of communication between operational entities and donors should be maintained and further developed within this overall framework. In addition, an enhanced role for in-country teams (including Special Representative of the Secretary General,) with respect to donor and beneficiary contacts and project development should be foreseen.
B. FRAMEWORK FOR PROJECT SELECTION, IMPLEMENTATION, REPORTING AND EVALUATION
- Potential discrepancies between the agreed overall priorities of the Council of Europe and those of individual external donors.
- Collective need to choose among several (possibly conflicting) needs for funding and to establish common guidelines.
- Need for knowledge-sharing and training on best practices.
- Need to improve implementation, reporting and evaluation methods and practices to ensure donor satisfaction.
Set priorities for project funding:
- at Directorate or Department level with limited or no central coordination. Criteria defined by each Directorate;
- as part of an integrated process (the Programme of Activities) to ensure alignment with Council of Europe goals, with objective consideration of implementation capacity, reporting record and evaluation provisions.
In either case, project selection should take into account CM (2006)101 Final, Establishing criteria for projects.
The search for external resources could be carried out through:
- general appeals for funding, with limited or no donor profiling,
- coordinated, targeted fundraising, based on good donor profiling and matching donors’ interests
Consideration should be given to introducing a pluri-annual planning process for the the Council of Europe as a whole, encompassing both Ordinary Budget funding and external resources.
11. Recommendations for project selection, implementation and reporting/evaluation
11.1 Alignment of objectives
Plan all projects through an integrated process to ensure alignment of objectives (inclusion in the Programme of Activities).
Include external resources in the planning process. Encourage pluriannual planning. Take due account of the absorption capacity of the beneficiary when designing projects.
Consider only donor contributions that support the achievement of agreed objectives.
11.2. Project priority
Design all project proposals in accordance with document CM(2006)101 final, Establishing criteria for projects.
11.3. Implementation capacity
Consider the implementation capacity of the unit requesting the project.
Consider only project proposals which include estimates of the full cost of human and financial resources needed, and of the conditions for successful implementation.
Provide adequate training for project management in order to improve efficiency of planning and the effectiveness of implementation.
11.4 Reporting record
Consider the reporting record of the implementing unit.
Propose appropriate measures to ensure that future reporting will meet donor expectations.
11.5 Evaluation and impact assessment
Provide for appropriate monitoring and evaluation of the project conception.
Encourage the inclusion of self-evaluation provisions, complemented by external evaluations where appropriate.
Promote the inclusion of key indicators for short-term and long-term impact assessment.
C. PROCESS STAGES
- Project proposals may not be suited to the beneficiaries’ needs; staff resources budgeted may not be sufficient for implementation.
- The current level of monitoring is not sufficient for adequate project supervision; reporting and evaluation is not performed in a timely manner, leading to donor dissatisfaction.
13. Recommendations to improve the process of resource management and mobilisation:
13.1. Identification of needs
All project proposals should be based on a sound assessment of needs, with the involvement of key stakeholders for the implementation of the projects. Projects can be designed and implemented by all sectors of the Council of Europe.
Encourage programme co-ordinators to submit programme and/or project proposals that address identified needs and are in line with agreed priorities, have potential (have the necessary critical mass) to reach a sustainable positive impact, have been agreed with the beneficiary authorities, and have been designed in collaboration with potential partners for implementation.
Align the process for external resource programme/project approval with that of core-funded programmes/projects. Only Committee of Ministers approved programmes/projects would be eligible to receive resources.
13.2. Identification of external sources of funding
Use donor profiling to identify potential donors, their funding capacity and allocation criteria, matching individual programmes/projects or project themes with identified resources.
A systematic donor profiling database shall be developed through a survey of current and potential donors, taking into account central and decentralised expertise.
13.3. Targeted fundraising plans
Develop fundraising plans for specific programmes/projects, targeted to donors with matching interests.
Facilitate the presentation of projects and programmes according to specific donors’ requirements (thematic, country/regional ).
Encourage multi-annual partnerships to fund pluriannual programmes/projects.
13.4. Coordinated fundraising and contract negotiation
Coordinate, with implementing entities, fundraising directed at targeted donors. Promote the use of Council of Europe standard contracts and coordinated negotiation procedures.
13.5. Project implementation
Operational Major Administrative Entities remain responsible for project implementation (and negotiation of specific sectoral contracts).
Develop monitoring procedures to ensure that project implementation is in accordance with contractual agreements.
Ensure that variances are reported promptly to the donor, indicating the difficulties encountered, the actions taken and, where appropriate, what further steps are proposed.
13.6. Reporting and evaluation
Develop a standard common reporting (narrative and financial) and evaluation framework for all projects, irrespective of the source of funding. Establish a minimum threshold for reporting on individual contributions.
Promote and encourage donors to accept the standard reporting and evaluation framework for projects, to harmonise and streamline the process and avoid, where possible, complicated reporting obligations on individual contributions.
Implementing entities will retain responsibility for both narrative and financial reporting.
Develop standard guidelines and criteria for evaluation.
13.7. Donor satisfaction
Introduce monitoring mechanisms for project implementation and reporting to ensure donor satisfaction, responding in particular to the following needs: donor visibility, achievement of results and objectives, timely execution of projects, efficient use of resources provided, and timely reporting and evaluation.
D. COMMUNICATION AND PRESENTATION ASPECTS
- Project proposals presented to donors in various formats, and in different documents (individually, as part of action plans, as Project Management Methodology projects,) by the implementing entities lead to donor confusion.
- Project proposals without the Committee of Ministers’ endorsement may not be fully aligned with the Council of Europe’s objectives.
- Promotion of proposals does not take advantage of multimedia and web-based dissemination tools.
- Donor visibility is often not satisfactory. The importance of accountability for project results (evaluation and reporting) is not always taken into account.
- Submit proposals to potential donors without review and approval of the Committee of Ministers; consider that donor approval is sufficient.
- Rely on each implementing entity to define its own approach to donor visibility.
- Coordinate the presentation of project proposals using a standard format common to all implementing entities, and present all proposals in a single document and a single database.
- Ensure that all project proposals are subject to a formal review procedure involving the Committee of Ministers.
- Make better use of multimedia tools to present project proposals, and ensure donor visibility by involving donors in project implementation.
16. Recommendations concerning communication
16.1. Standard presentation of proposals
Align the presentation of programme/project proposals using a standard format in line with the Council of Europe’s Project Management Methodology (PMM), comprising:
b. project description
c. project budget
d. project work plan
Proposals for voluntary contribution-funded projects will be included in the draft Programme of Activities submitted for approval by the Committee of Ministers. Voluntary contributions will then be solicited on the basis of the approved Programme of Activities.
16.3. Communication with donors
Communicate project proposals to potential donors in an attractive format, making use of media tools (including Internet dissemination tools).
Encourage donor involvement in project implementation through participation in events such as seminars and symposia, to maximise donor visibility and recognition.
Develop general and thematic information material to attract the interest of decision makers within potential donors’ structures/organisations.
E. MANAGEMENT STRUCTURES
- Organisational knowledge of resource mobilisation and sharing best practices is not satisfactory. Cross-entity synergies can be developed; communication and coordination need to be improved.
- Donors have requested a single interface with the Council of Europe to resolve issues relating to the use of their voluntary contributions.
- Coordination and management of external resources requires appropriate resources.
- Rely on implementing entities to develop cross-entity synergies leading to sharing knowledge and best practices or
- Develop a central coordination service for resource mobilisation, to act as
1. a “one-stop shop” interface with donors, with a clear distribution of tasks in relation to implementation entities
2. a service unit to decentralised entities
19. Recommendations concerning the coordination of resource mobilisation
19.1. Coordination function
Create a “one-stop shop” service (clearing house) for all stakeholders with the objective of coordination of project design, donor matching, contract negotiation, reporting and evaluation. This coordination function would be based on close cooperation with decentralised entities and with the aim to provide organisation-wide coherence.
Expand such a service through a dedicated External Resources Unit
The External Resources Unit should, along with other relevant entities, ensure implementation of the resource management and mobilisation strategy by coordinating the elaboration of projects adapted to donor requirements, facilitating access to the various sources of external funding, developing standardised procedures for contract negotiation, project management and reporting, and acting as a clearing house and repository of best practices in resource management and mobilisation for the Council of Europe as a whole. The Unit should also play a role in the allocation of non-earmarked contributions.
19. 2. Distribution of tasks
19.2.1. External Resources Unit
- Coordinate all aspects of donor relations, including prospecting, submission of programme proposals, negotiation of major contracts, interim and final reporting, evaluation and donor satisfaction.
- Coordinate all joint programme proposals with the various agencies of the European Commission.
- Act as an interface (one-stop shop) between donors and implementing entities.
Become a repository of best practices, gathering and disseminating successful approaches to resource mobilisation.
- Assume a support and training function by
· assisting decentralised services in matching projects with donor needs
· helping to achieve consistency with priorities
· facilitating the conclusion of contracts with favourable terms
· disseminating best practices
19.2.2. Directorate General of Democracy and Political Affairs
- Develop country strategy papers, and define priority areas for co-operation with the European Commission.
19.2.3. Senior official responsible for relations with the European Commission
- Manage all aspects of political relations with the European Commission.
- Accompany the negotiation of Joint Programmes with the European Commission, as necessary.
19.2.4. Implementing entities
- Identify needs and develop project proposals, including proposals for joint programmes.
- Pursue fundraising contacts with traditional and potential donors, within an agreed framework and in concert with the External Resources Unit.
- Negotiate contracts with donors in concert with, and with the support of, the External Resources Unit.
- Implement, report on and evaluate funded projects, ensuring maximum donor visibility.
19.3. Management of external resources
- Responsibility for the management of extra-budgetary resources is included in the Secretary General’s annual delegation of financial responsibility. The External Resources Unit should contribute to the overall coordination of external resources within this framework.
- The current fixed-rate deductions on external resources will be reviewed to ensure that all attributable costs resulting from additional activities are covered in an appropriate manner.
This new approach to resource mobilisation is an integral part of a medium-term effort to implement the decisions of the Warsaw Summit and thus to fulfil the goals assigned to the Council of Europe by its stakeholders. It complements ongoing efforts to increase efficiency, effectiveness and transparency of the Council of Europe.
The implementation of the strategy will contribute to developing an integrated approach to the management of resources, through the coordination of the various instruments and mechanisms of the Council of Europe. It will create synergy and added value.
The strategy and in particular the objectives for the volume of additional resources being sought should be reviewed after two years.
Note 1 This document has been classified restricted until examination by the Committee of Ministers.
Note 2 Since 2006, the trend in the total of member states’ voluntary contributions has begun to be reversed following the gradual application of certain measures set out in this document.