Financial Update and Achievements of Y3 Members Assembly Meeting

Session 4: Budget, Workplan and Funding Y4/5 Members Assembly Meeting 29-30 June

REVIEW OF Y3 FINANCIAL UPDATE AND DELIVERY ANNELISE PARR, IATI SECRETARIAT

Y3 (Sep 15-Aug 16) Financial Update (Paper 4A.2) Total income Y3 MF AVC Carry over from Y2 $ 1.88m $ 1.23m $ 355,000 $ 295,000 Timely receipt of funds: 25 contributions received in 2015 (Q1) 7 contributions received in 2016 (Q2/Q3) Still in process: 5 providers, 3 partner countries ($219,500) Projection to 31 August 2016 Cash position: $1.88m (exceeds Y3 budget by $213,000)

Key achievements Year 3 (Paper 4A) 1. Standard and Infrastructure V.2.02; Aidstream; new guidance 2. Quality and Quantity of data Publisher support up to Busan, Dashboard; 124 new publishers 3. Country Ownership & data use New LTAs; Country systems study; PC on the Board 4. Institutional leadership 8 new members; Evaluation; Support to MAG; Board established 5. Communications and Outreach WHS, Grand Bargain Commitment; Annual Report;

Who makes it happen Policy Support Operational Support Secretariat Annelise Parr Secretariat Coordinator, UNDP FULL-TIME Joni Hillman Project Lead, DI Carolyn Culey Director of Strategic Partnerships, DI PART-TIME Hannah Milde Transparency and Communications Analyst, UNOPS PART-TIME Rohini Simbodyal Communications Adviser, DI FULL-TIME Argjira Belegu-Shuku Logistics, Administrative and Financial Specialist, UNOPS - FULL-TIME Cillian O Cathail Communications and Transparency Officer, UNOPS PART-TIME FULL-TIME Funded by IATI budget Additional Technical Support Francisco Martinez Finance/Administrative Assistant, UNOPS PART-TIME Matt Bartlett Project Manager, DI PART-TIME Rory Scott Developer, Business & Data Analyst, DI FULL-TIME Bill Anderson Technical Lead, DI Dale Potter Developer, DI Wendy Rogers Senior Business & Data Analyst, DI PART-TIME PART-TIME FULL-TIME Technical Support Strategic oversight In-kind contributions by consortium Carl Elmstam Transparency Manager, Sida, Sweden Samuel Aggrey Senior Economic Officer, Ministry of Finance Ghana. Harpinder Collacott Executive Director, DI Katrin Lichtenberg Senior Portfolio Manager, UNOPS Yuko Suzuki Policy and Strategic Direction, UNDP Simona Marinescu Management oversight and Strategic Direction, UNDP

FEES AND FUNDING RUPERT SIMONS, IATI GOVERNING BOARD

IATI Funding, 2016-18 Overview of the previous IATI funding model, why it has not provided sufficient income and the impact this has had on IATI s work Three options for a new fee model for members consideration and decision

At the 2013 Steering Committee Consortium selected to run IATI for 3 years 3 years Hosting bid states $2.2m required for Y1 budget $2.2m Income from fees (70%) & additional contributions (30%), based on assumption every eligible org would pay fees 70 : 30

Budget vs. Income IATI has been consistently under-funded: YEAR APPROVED INCOME REQUESTED $2.2m $1.8m 2013/14 $2.2m $1.5m $1.9m 2014/15 $2.4m $2.3m $1.7m 2015/16 $1.6m

Funding model has not delivered $2.5 Fees AVCs Funding Gap $2.0 $0.4 $0.7 $0.4 $0.1 $1.5 $0.9 $0.6 $0.5 $1.0 $1.5 $0.5 $1.0 $1.0 $0.9 $0.0 In theory 2013/14 2014/15 2015/16

The results? While the Secretariat has been financially responsible and never overspent Workplans have been cut every year Workplans have focused on keeping the lights on , rather than achieving IATI s ambitions

Despite funding challenges IATI has grown exponentially: Standard: From 1.03 to 2.02; humanitarian Publishers: 173 to 469 Avg. support requests per month: 88 to 113 FFD and WHS commitments to IATI Tools & applications to support: 7 to 14 Data Quality: Indicator rates 55% members good or excellent

But infrastructure is breaking Systems were built for a smaller initiative and can t meet growing demand Staff spend their time fixing short-term problems, not developing long-term solutions Tech Team capacity has not grown but demand has Data use is a key priority but there is not enough capacity to work on this

Urgent investment is required to meet the ambitions of IATI s vision. The $2.6m p.a. budget for Y4&5 is: Consistent with Open Contracting & GPSDD budgets HALF the EITI and OGP budgets Only slightly higher than the original $2.2m budget, despite huge growth 2013 2016

Urgent investment is required All Secretariat members made in-kind contributions of staff time 2013/14 2014/15 Secretariat asked to continue hosting for another two years 2015/16 Limited budget managed responsibly but we cannot continue to deliver without investment 2016/17 UNDP will add a shared staff member in-kind 2017/18 DI will fund a data use audit

Fees need to increase To enable IATI to work to achieve the new vision and mission So we are better able to take up opportunities presented by e.g. the World Humanitarian Summit, the 2030 Agenda The evaluation recommended that fees should cover core costs The resources required to run IATI in 2016-2018 are only marginally more than the original budget of 2013

What we will do with the money New work Investment New Data Use strategy More support for publishers on data quality New website Updated branding Simplify and strengthen complex technical infrastructure Support new institutional arrangements & long- term sustainability Support WHS IATI commitments

Slides 19-23 were added to this deck and presented on 30 June ADDITIONAL SLIDES ON FUNDING FOR YEARS 4-5 (SEP 2016-AUG 2018)

Where we have got to (Day 2) Consensus that option 1 (no change) is not acceptable Partner countries, CSOs and others support a membership fee increase capped at $2,200 Many Tier 1 members spoke in favour of the budget, workplan and membership fee increase Other Tier 1 members will need more time, and support to make the business case

Y3 & Y4 budget comparison US$ million Staff Activity $1.0 $0.9 $0.8 $0.7 $0.6 $0.5 $0.4 $0.3 $0.2 $0.1 $0.0 Y3 Y4 Y3 Y4 Y3 Y4 Y3 Y4 Y3 Y4 Data use Data quality Standard Communications and outreach Institutional arrangements

What does the increase buy? US$ million $2.5 $0.2 $0.2 $2.0 $0.3 $1.5 $0.4 $2.4 $1.0 $1.3 $0.5 $0.0 Projected income before increase Missing AVCs Data use Communi- cations and outreach TAG and hosting Requested income after increase

Proposed fee tiers Budget Fee level Current members affected 30 Provider group $85,000 1 Partner countries $2,200 5 2 CSOs and others <$10 million CSOs and others <$10 million $2,200 2 3a $1,100 7 3b Members who are unable to pay the full amount immediately are requested to pay $43,250 now, and will be given six months from the start of the financial year to make the second payment. The Board and Secretariat stand ready to help make the business case for anyone who requests it.

Decisions for members Approve the Y4 & Y5 budgets (from Sept 2016) Reminder: Board has authority to make budget corrections of +/- 20% during period of implementation Approve the modified Membership Fee, to enter effect from 1 September, with a grace period of 6 months, reflecting budget cycles, for members who cannot pay the increased amount immediately