Exercise: Accreditation of a National Implementing Entity

2 Imprint Published by: Contact adelphi Caspar-Theyss-Strasse 14a Berlin / Germany T F E I Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH CF Ready Program Godesberger Allee Bonn/Germany T F E I Dennis Tänzler E T Dorit Lehr E T tise/html/3041.html Any content written by named authors do not necessarily reflect the views of adelphi nor GIZ nor of the German Federal Ministry for Economic Cooperation and Development. Although the authors take all possible care to ensure the correctness of published information, no warranty can be accepted regarding the correctness, accuracy, reliability and completeness of the content of this information. August 2014

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4 What you can expect to learn from this exercise:  Get an understanding of :  The specific requirements for the accreditation of a National Implementing Entity (NIE) set out by the Adaptation Fund  Potential challenges institutions face in fulfilling the fiduciary and management capacities necessary to be accredited as an NIE.  How to:  Evaluate the fiduciary and management capacity of an institution applying for accreditation as an NIE.

5  AF criteria for NIE accreditation  Exercise on analysing NIE accreditation process for CLIFland  Reflections & next steps Agenda

6 AF criteria for NIE accreditation I. Financial Integrity and Management II. Requisite Institutional Capacity III. Transparency, self-investigative powers, and anti- corruption measures

7 AF criteria for NIE accreditation a)Accurately and regularly record transactions and balances ….in a manner that adheres to broadly accepted good practices; … that are audited periodically by an independent firm or organization. b)Managing and disbursing funds efficiently to recipients on a timely basis, including safeguards. c)Producing forward looking financial plans and budgets. d)Legal status to contract with the Adaptation Fund and Board. I. Financial Integrity and Management

8 AF criteria for NIE accreditation II Requisite Institutional Capacity a)Procurement procedures which provide for transparent practices, including competition. b)Capacity to undertake monitoring and evaluation. c)Ability to identify, develop, and appraise projects. d)Competency to manage or oversee the execution of the project/programme including ability to manage sub-recipients and to support project/programme delivery and implementation. II. Requisite Institutional Capacity

9 AF criteria for NIE accreditation a)Competence to deal with financial mismanagement and other forms of malpractice. b)Capacity to address complaints on environmental and social harms caused by projects/programmes III. Transparency, self-investigative powers, and anti- corruption measures

10 Exercise – Accreditation process analysis Setting: The Designated Authority (DA) located at the Ministry of Environment of CLIFland received two applications sent by the National Development Bank and the National Institute of Energy, Water and Natural Resources of CLIFland to be accredited as a National Implementing Entity (NIE) for the Adaptation Fund (AF). The applications were already reviewed and summarized. You are part of an expert team assisting the DA. You have been assigned with the task of reviewing the summarized applications in order to formulate a recommendation for whether the application should be endorsed by the DA and submitted to the AF Secretariat. The recommendation will have to be presented and justified to the DA to make the final decision. Now it is your turn to do the exercise!

11 Exercise – Accreditation process analysis Now it is your turn to do the exercise!  Break up in groups of 4 people  Follow the instructions of the Step-by-Step guide which you find in the hand out Step 1: Use the information provided in the hand-outs about the application of two institutions of CLIFland to become accredited as an NIE by the Adaptation Fund. Step 2: Select one application and analyse to what extent the respective institution meets the fiduciary and management standards set out by the Adaptation Fund for NIE accreditation. You will find information on the NIE accreditation criteria in the hand out.

12 Exercise – Accreditation process analysis: solution CriteriaNational Development BankInstitute of Energy, Water, Nat. Res. I. Financial Integrity and Management Good example of audited financial statements Inadequate Internal Control Framework Good example of spending against project budget Acceptable internal audit procedures Lack of information on external audit Good Internal Control Framework Lack of information on spending against project budget Good example on legal status II. Requisite Institutional Capacity Good procurement mechanisms Good project evaluation procedures Good process for identification/ approval of projects incl. risk management Lack of information on capacity to manage and oversee projects Inadequate procurement practices Poor risk management Inadequate demonstration of identification, development and approval of projects Inadequate capacity to manage and oversee projects III. Transparency, self-investigative powers and anti- corruption measures Good antifraud practice Lack of information on how complaints on environmental/ social harms caused by projects/programmes are addressed Inadequate example of antifraud practice Lack of information on how complaints on environmental/ social harms caused by projects/ programmes are addressed

13 Accreditation process analysis - Reflection Getting CLIF Ready What did you learn from this exercise? What aspects of the AF evaluation criteria for NIE accreditation did you find easy to assess? Which ones difficult? Why? How do you assess the feasibility of NIE accreditation for your own institution and applicable institutions within your country?

14 Checklist to get CLIF Ready According to what you learnt from this exercise you could … Check out what institutions in your country are suitable to become an NIE. Check what barriers these entities meet with regards to fulfilling the NIE criteria of the Adaptation Fund. Discuss in your institution how these barriers can be overcome to meet the AF criteria for NIE accreditation. Accreditation process analysis – Next Steps