1. GEF Funds Flow “Intro to the GEF” Training for WWF-US and CI November 1, 2013 Multilateral Trusteeship and Innovative Financing (CFPMI) Concessional Finance & Global Partnerships (CFP)

2. 2 Roadmap I.The GEF Funds Flow II.Financial Procedures Agreement III.Reporting Requirements

3. 3 The GEF Funds Flow [for Full size Project] Returned Funds from Agencies Released from Commitment Release from set-aside Transferred to Agencies Funding Committed by Trustee Funding Endorsed by CEO Funding Set aside by Trustee Funding Approved by Council Restricted resources Cash received (USD) Note received Note encashed “Billing”: IoC deposited with Trustee “Pledge”: Recorded Replenishment and Contribution Management Funding Decisions Implemen- tation Funding Availability for programming decision

4. Financial Procedures Agreements A set of legal documents governing the business relationship between the IBRD as the Trustee of the GEF Trust Fund and the GEF Agencies, setting definitions and rules for:  Commitment of funds by Trustee –Amount, date of Council approval/CEO endorsement –Letters of Commitment –Setting financial liability for Agencies including adjustments for cancellation and closed projects and fees  Transfer of funds to GEF Agency  Use of funds by GEF Agency –In accordance with Agency’s policies and procedures –Trustee is not responsible for use of funds by Agency  Reflows from GEF Agency to the Trustee  Investment income arrangements  Reporting requirements (Quarterly, Semi-annual and Annual)

5. Reporting Requirements  Quarterly reports within 30 days after the end of each quarter informing the Trustee of:  Individual projects (FSPs, MSPs, EAs only) approved by the Agency Board, ready to receive GEF funds;  Individual projects (FSPs, MSPs, EAs, PPGs, PDFs) and Special Initiatives that were dropped, cancelled or financially closed (including closing date, final amount used and amounts unused);  Individual fees cancelled;  Reflows of funds received by Agency from GEF projects. The Trustee uses these reports to adjust its liabilities towards the IAs/EAs. 5 To comply with External Auditors, Internal Audit Unit and Controllers requirements, there is a need for a more consistent flow of information between Trustee and the Agencies.

6. Reporting Requirements  Semi-annual Investment income reports within 60 days after the end of each semester and returns funds to Trustee, as requested.  Annual audited Financial Statements within six months after the end for Agency’s fiscal year.  Annual Reconciliation Reports upon request by Trustee. 6

7. Questions Question? 7