1. Financial Resources Working Group (FRWG) Meeting: Session 2
Jasmin Mohd Saad
Governance Working Group & Cross cutting Themes Senior Manager
CTI-CFF Regional Secretariat
29 March 2017, Pasig City, Manila, PHILIPPINES

2. FRWG Meeting Provisional Agenda

3. Session 2: SOM-12 Recommendations mandated to the FRWG
1. Project Preparation Facility; Establishment of the CTI Regional Fund; Scoping and Design activities for Showcase Projects; Updates on ADB/GEF concept on “Scaling Up Investments and Sustainable Financing Mechanisms in Coral Triangle”
2. Update on Member States’ NPOA financial information
3. Re-assess FRWG TOR development

4. FRWG Background and Mandates

5. Background to FRWG Refer to Annex 2.a
SOM-1; 6-7 December 2007; Bali – Indonesia (CCC)
SOM-2; 23 October 2008; Manila - the Philippines
SOM-3; 9-10 March 2009; Port Moresby - Papua New Guinea (CCC)
SOM-4; October 2009; Kota Kinabalu, Sabah - Malaysia
SOM-5; November 2009; Honiara - Solomon Islands
SOM-6; November 2010; Manado, Indonesia
SOM-7; October 2011; Jakarta – Indonesia
SOM-8; November 2012; Kuala Lumpur – Malaysia
SOM-9; November 2013; Manila – the Philippines
SOM-10; 5-7 November 2014; Dili – Timor Leste
SOM-11; 2-3 December 2015; Manado – Indonesia
SOM-12; 1-2 November 2016; Port Moresby – Papua New Guinea
Refer to Annex 2.a
RPOA Section V Financial Resources
Highlights the need for:
Financial planning. Systematic financial planning to estimate funding needs and gaps, and identify funding options (including sustainable finance options);
Mobilizing funding. A systematic approach to mobilizing additional funding; and
Financial architecture. A systematic approach to determining the most effective way to channel financial resources (“financial architecture”). Structure and coordinate funding flows to effectively support priority activities and programs

6. FRWG Outstanding Tasks
SOM-11 (2-3 December 2015; Manado) adopted the Final Report on the CTI Financial Architecture Study
Refer to Annex 2.b
SOM-12 (1-2 November 2016; Port Moresby) endorsed the proposed amendments subject to the appointment of a Project Initiation Specialist (PIS) / Financial Advisor
Implement the BDU / Project Preparation Facility (PPF) Initial Activities; and
Propose a fund structure that reflects CTI funding requirements and structural preferences of prospective contributors.

7. UPDATES by ADB
Updates on the appointment of the Project Initiation Specialist (PIS)
PIS / Financial Management Specialist (with significant experience in donor and other international project development expertise) to be based in Regional Secretariat. The PIS shall also assist in proposal developments; its preparations and securing funds for selected Showcase Projects. He / she shall provide training for RS in relation to project development and preparation.
Updates on ADB/GEF concept on “Scaling Up Investments and Sustainable Financing Mechanisms in Coral Triangle”
Updates on Member States’ National Plan of Action (NPOA) Financial Information

8. 1. Appointment of PIS / FA

9. Terms of Reference (TOR) for PIS / FA
The FA/PIS must perform the following tasks to his /her best professional ability and comply with international best-practices:
Assist the CTI-CFF Financial Resources Working Group (FRWG) in preparing the CT6 Sustainable Financing Plan
Coordinate the activities of FRWG and related SOM activities
Be the focal person: (i) in operationalizing the key elements of SOM endorsed financial architecture study and related activities, and (ii) in implementing financing mechanisms, including the use of tools such as the CTI chart of accounts, budgeting tools, and CTI cloud
Evaluate the feasibility of proposed programs and projects to fully implement the Regional Plan of Action (RPOA);
Prepare a standard operating procedure (SOP) for proposal submission and approval;
Annex 2.c
Submit the final proposals to CTI-CSO on possible sources of funding such as donor agencies, development agencies, development partners, and/or private foundations for approval;
Coordinate with donors and funding agencies the specification and implementation of monitoring and evaluation (M&E) framework/design of programs and projects;
Coordinate with program/project management units to ensure the successful implementation of programs/projects within approved budgets and time line;
Ensure that regular progress reports are submitted by program/project management units to the Executive Director of the Regional Secretariat;
Organize and implement project implementation reviews as necessary;
Perform other tasks as may be identified during the course of project identification, packaging, fund negotiation and implementation stages.

10. Updates on ADB/GEF concept on “Scaling Up Investments and Sustainable Financing Mechanisms in Coral Triangle”

11. 3. Updates on Member States’ National Plan of Action (NPOA) Financial Information

12. LUNCH

13. FRWG Draft TOR Outline

14. DRAFT OUTLINE FOR FRWG TERMS OF REFERENCE (TOR)
Refer to Annex 2.d
Based on the RPOA Section V on Financial Resources, the main objectives of the FRWG are to mobilize funding and develop a “financial architecture” to effectively support priority activities and programs.
FRWG Membership and Structure
Purpose and Tasks of the FRWG
Financial Management Planning, Coordination and Monitoring
Administrative Support to the FRWG
Financial Arrangements

15. Why FRWG does not discuss CTI Regional Secretariat Operations Plan and Budget?
Scene Setting

16. The Agreement on the Establishment of the Regional Secretariat of CTI-CFF

17. The Agreement on the Establishment of the Regional Secretariat of CTI-CFF --- Financial Regulations

18. Special SOM -- Annex 6; Decision Document on Session #7

19. Special SOM 2014 Decisions on Operations Plan and Budget
REGIONAL SECRETARIAT OF THE CTI-CFF INDICATIVE OPERATIONS
PLAN AND BUDGET – ASSUMPTIONS
The 2015 – 2017 indicative Operations Plan and Budgets are built upon the institutional foundation and budget proposed under the 2014 Operations Plan. Central to this is the CMWG decision that an appropriate organisational structure for the initial Secretariat would consist of 5 professional staff as any less might be too skeletal to carry out even the most basic responsibilities of this important intergovernmental institution. It is based on the following key budget assumptions: --- That the indicative budgets include only core operational funding – that is funding for the essential staff and activities of the Secretariat. No program funding other than basic expenses and travel is included, the assumption being that this will be generated primarily from extra budgetary sources.
Attachment B – Special SOM: 2015 Operations Plan and Budget and Indicative
2016 and 2017 Operations Plan and Budget for the
Regional Secretariat of the CTI-CFF (Revised 13 May 2014)

20. Conclusion 1 2 Financial Resources Working Group (FRWG)
To fund program activities
Establishment of the Project Preparation Facility (PPF)
Source: Development Partners & other sources of funding
Budget Preparation
To fund operational activities of the Regional Secretariat
Program expenses limited to basic expenses and travel
Uses guidelines / recommendations from Special SOM & CTI Financial Regulation to design Operational Budgets
Source: CT6 Member States Contribution

21. Headquarter: 
CTI-CFF Secretariat Building
Jl. A.A. Maramis Kayuwatu, Kairagi II 
Manado, North Sulawesi
95254, Indonesia 
Website:
: cticff