In recent years has seen a significant increase in the level of Global Bank Group support for rapid response to crises and emergencies, including post-conflict and post-disaster reconstruction. In all of these areas, the United Nations’ funds and programs (collectively referred to as United Nations Agencies) is expected to become key partners of the Global Bank Group.

It is expected that majority of the Global Bank’s engagement with United Nations Agencies fall under two scenarios: through direct grants from the Global Bank, i.e. through a Recipient Executed Trust Fund (RETF), where a United Nations Agency is the recipient; or through recipient governments which engage a United Nations Agency on a contractual basis. The Global Bank’s financial management (FM) policy and procedures apply differently under each of these two scenarios.

United Nations Agencies as Direct Grant Recipients
For direct grants to United Nations Agencies, financial management arrangements are governed by two methods: The United Nations Fiduciary Principles Accord (UN FPA), and the Financial Management Framework Agreement (FMFA). While the United Nations Fiduciary Principles Accord is limited in its application to country-specific single- and multi-country donor trust funds (TFs) established to support recovery programs in weak capacity environments with crisis and emergency situations, the Financial Management Framework Agreement can apply to all operations funded by trust funds, The Global Fund for International Development and Reconstruction (GFIDR), and The Global Bank for International Development and Reconstruction  (GBIDR).

The Global Bank’s financial management requirements are met when the United Nations Agency receives, manages, expends, reports on, and performs an audit of the United Nations Fiduciary Principles Accord or Financial Management Framework Agreement grant funds in accordance with the United Nations’ own financial management procedures and accountability and oversight framework. The United Nations Agency will submit to the Global Bank an annual financial report of the grant’s income and expenditures.

United Nations Fiduciary Principles Accord (UN FPA)
The United Nations Fiduciary Principles Accord applies to direct grant funds to a qualified United Nations Agency if:

1. The project is processed under The Global Bank’s Operational Policy (OP) 8.00, and/or it satisfies the criteria of paragraph 12 of OP 10.00 in terms of alternative implementation arrangements in weak capacity situations, and client country request and agreement to United Nations implementation; and

2. The project is funded under multi- or single-donor trust funds (including trust funds funded by contributions from The Global Bank for International Development and Reconstruction net income) that specifically provide for the application of the United Nations Fiduciary Principles Accord (i.e. all donors agree to the application of the United Nations Fiduciary Principles Accord).

Financial Management Framework Agreement
The Financial Management Framework Agreement (FMFA) applies to direct grant funds to one of the United Nations Agencies currently a signatory to Financial Management Framework Agreement.

United Nations Agencies Engaged by Borrowers on Contractual Basis
In cases where borrowers hire a United Nations Agency on the basis of a contract to provide specific goods, technical assistance or services as per the provisions of the Procurement or Consultant Guidelines, financial management arrangements are governed by the Global Bank’s standard financial management requirements.