CGIAR Consortium Progress update October 2015 – March...

CGIAR Consortium, Progress Report FC15, 5 – 6 May 2015, Rome, Italy of 24

April 2016

CGIAR Consortium Progress update

October 2015 – March 2016

Approved by the Consortium Board at its 24th meeting, virtual, 29 March 2016.

CGIAR Consortium Progress update for FC15


CGIAR CONSORTIUM PROGRESS UPDATE

October 2015 – March 2016

Introduction This document: 1. In Part A:

a. Supplements the CGIAR Consortium’s 26 October 2015 report to the

14th Fund Council (‘FC’) meeting in November 2015 (‘Consortium FC14 Report’), to provide an overall view of implementation against the Consortium’s 2015 program of work and budget (‘2015 PoWB’); and

b. Sets out the preliminary 2015 Consortium Unaudited Financial Results.

2. In Part B - Provides an early update on progress on key 2016 initiatives set out in the Consortium’s 2016 PoWB, as approved by the Consortium Board on 8 October 2015, and subsequently approved by the FC at its 14th meeting, 4 – 5 November 2015, Washington, D.C.

Two companion documents are shared with this document as follows: A. CGIAR OA-OD Phase 1 project report – January 2016 B. 5th CGIAR Consortium Gender and Diversity Performance Report – March 2016



Contents

Part A – Review of 2015 operations .......................................................................................... 4

1. Review of final outcomes for 2015 ................................................................................. 4

2. Preliminary 2015 Consortium Unaudited Financial Results ........................................... 7

Part B – Early update on progress on key priorities for 2016 .................................................... 8

1. Progress review of key priories within the 2016 PoWB ................................................. 8

2. Consortium Office staffing overview ............................................................................ 17

Annex 1 – 2016 CGIAR Consortium Key Actions and Outputs/Deliverables ........................... 18



Part A – Review of 2015 operations This part includes the following sections:

1. Review of final outcomes against the CGIAR Consortium1 2015 PoWB 2. High-level summary of the 2015 CGIAR Consortium unaudited financial results.

1. Review of final outcomes for 2015

Table 1 below summarizes final progress against the Consortium’s seven strategic priorities for the CGIAR Consortium for the 2015 calendar year, as supported by the detailed narrative provided in the Consortium FC14 Report, dated 23 October 2015, in recognition that the period April – end-October 2015 saw significant achievement of the Consortium’s 2016 program of work. Overall, more than 90% of the 2015 PoWB activities were implemented as planned, including all routine annual core business tasks (the various annual reports and financial management and reporting). The most significant achievement of the Consortium over the 2015 calendar year was that it facilitated and catalyzed the development of a true portfolio of coherent global cross-center programs that is now owned by the centers in response to the mid-2015 approved bold new 2016-2030 CGIAR Strategy and Results Framework that was developed with significant ownership of CGIAR’s funders. A second key achievement of the Consortium is that it facilitated the further strengthening of cross-center collaboration through the active facilitation of a large number of Communities of Practice and several additional system-wide initiatives on key issues, namely the gender Action plan and the Open Access / Open Data project. Detailed progress reports on both initiatives are provided as companion documents to this report, for FC15 review. The third key achievement of the Consortium across the 2015 year is its successful transition from a hosted body to an independently operating international organization with the required legal agreements, HQ building, team, and policies, systems and accreditations (including from the United Nations) to become an effective organization – which will be the basis for the new CGIAR System organization. The two areas where the Consortium was less successful in 2015 was contributing to a more predictable funding environment for research activities, including providing a predictable CRP Financing Plan in early 2015 that could remain unchanged across the year, and achieving final approval from the Fund Council (for Common Operational Framework priorities) or the Centers (for Consortium-wide policies). The former was impacted by the absence of performance metrics being present in the CRP1 (2011/12-2016) portfolio design to use as a basis for allocation of funding in a resource-constrained environment, and because the revenue forecasts changed right across the year. The most material impact on the policy and guidelines development environment was the FC’s April 2015 decision to transition the governance arrangements, with the centers expressing a strong preference thereafter to await the outcome of that transition before taking forward items that were otherwise near final.

1 CGIAR Consortium is a reference to the legal entity comprising the CGIAR Consortium Board and the CGIAR

Consortium Office.


FC14, 4 – 5 November 2015, Washington D.C of 24

Table 1: Final Consortium progress against 2015 PoWB, to 31 December 2015

2015 PoWB Deliverable Status reported at FC142 Additional update to 31 December 2015 (as relevant)

Key Deliverable 1: Ensure system-wide adoption of a bold new Strategy and Results Framework (SRF)

Status reported to FC14: Completed The 2016 – 2030 SRF approved by the Consortium Board and the Funders Forum, now serves as the key strategic document to direct the scientific research efforts of the CGIAR system through to 2030, with interim targets adopted for 2022

Previously completed

Key Deliverable 2: Approve and launch the call for next generation CGIAR Research Programs (CRPs) in line with the SRF

Status reported to FC14: 2nd Call Pre-Proposal Guidance issued on 15 June 2015; and the Consortium’s Independent Science, Programs, and Partnerships Committee (SPPC) review completed and presented to the Consortium Board for discussion in November 2015.

Additional update: Completed The Consortium Board approved and issued the 2nd Call for Full Proposals on 19 December 2015, following the collaborative work of a joint Consortium/Centers/ Fund Council working group to assist the FC in giving a green light to move to full proposals.

Key Deliverable 3: Options Team engagement and follow up on Fund Council 2015 decisions

Status reported to FC14: Ongoing Consortium contributions to the planned transition, including routine engagement throughout June and July to support the Fund Council’s approval of a ‘Transition Plan’ to support the transformation processes.

Additional update: Topic of ongoing action into 2016 The Consortium is an active member of the transition’s “Big picture working group” and is continuing its contribution to support an on-time streamlined move to the new CGIAR System.

Key Deliverable 4: Meaningful advancement gender diversity in research, and in the workplace in the larger context of a true Diversity and Inclusion Strategy for CGIAR

Status reported to FC14: In early October, the Consortium submitted to the Fund Office: (i) for FC14 the Consortium’s 4th Gender in research and the work place report, (ii) together with a proposed re-stated 2016 – 2020 Diversity and Inclusion Strategy following broad consultation with Centers for consideration by the FC as soon as possible.

Additional update: Topic of ongoing action into 2016 (i) All CRP pre-proposals reviewed by the ISPC and discussed at FC14 included consideration of gender, a considerable improvement on Phase 1 of the portfolio. (ii) The Consortium awaits Fund Council formal consideration of the key 2016 – 2016 Diversity and Inclusion Strategy submitted in October 2015 for approval, to take forward gender in the work place issues effectively.

2 The CGIAR Consortium’s full progress update is available at the “FC14 Meeting Documents” link here: http://cgiarweb.s3.amazonaws.com/wp-

content/uploads/2015/09/CGIAR-Consortium-Progress-Update-on-2015-Deliverables-Including-Gender-and-Open-Access-Open-Data-Special-Initiatives.pdf

http://cgiarweb.s3.amazonaws.com/wp-content/uploads/2015/09/CGIAR-Consortium-Progress-Update-on-2015-Deliverables-Including-Gender-and-Open-Access-Open-Data-Special-Initiatives.pdf

http://cgiarweb.s3.amazonaws.com/wp-content/uploads/2015/09/CGIAR-Consortium-Progress-Update-on-2015-Deliverables-Including-Gender-and-Open-Access-Open-Data-Special-Initiatives.pdf



Table 1 continued

2015 PoWB Deliverable Status reported at FC14 Additional update to 31 December 2015 (as relevant)

Key Deliverable 5: Manage the Consortium’s core business related to the ongoing CRP cycle.

Status reported to FC14: The Consortium has concluded and delivered: (i) 2014 CRP Portfolio Report; (ii) 2014 CGIAR Intellectual Asset Report; (iii) 2014 CGIAR Annual Report, as launched during the SDG summit in September 2015; and (iv) the 2014 Financial Report. 2015 1st CRP disbursements were made in early July.

Additional update: Completed (i) All statutory and other annual reports were published by FC14. (ii) On 1 November 2015, the Consortium requested by second and final 2015 disbursements be made, with the trustee making those disbursements by early December 2015.

Key Deliverable 6: Increase the CGIAR funding through a successful fund drive, strategic communications and lead to new sources of international funding

Status reported to FC14: The Consortium has (i) agreed with FO on the principles and agenda of a Fund Drive in 2016, (ii) completed its application for Green Climate Fund accreditation (pending review by the GCF), (iii) organized or participated in key cross-CGIAR and high-level events, (iv) initiated the production of renewed communication supports.

Additional update: Topic of ongoing action into 2016 The Consortium joined with a number of Centers to ensure significant CGIAR presence at the COP21 discussions in Paris, Highlights and successes during COP21 included (i) The launch of the 4 pour 1000 soil carbon sequestration initiative with the French government; and (ii) The CGIAR Partners reception held during the Global Landscapes Forum for which CIFOR were the lead organizers. Around 200 guests were present, including many CGIAR colleagues and partners. Next steps include ensuring that agriculture is placed well to benefit from funds available including the Green Climate Fund and the Global Environment Facility.

Key Deliverable 7: Host and support successful deliver of Phase 1 of the Open Access – Open Data (‘OA/OD’) special initiative.

Status reported to FC14: Almost each Center and CRP has taken steps towards making publications and data openly accessible, and towards better documenting and organizing other research outputs. Annex 1 to the Consortium FC14 Report provided a detailed report on progress to October 2015.

Additional update: Completed (Phase 1) Phase I has moved CGIAR’s OA/OD efforts forward in a consistent and coordinated manner across Centers, and articulated needs to be addressed in fully realizing the value of CGIAR research outputs, particularly data, in accelerating innovation and impact. Phase 2, will build on this progress to provide strong global leadership in this domain.



2. Preliminary 2015 Consortium Unaudited Financial Results

2015 is the first year for the Consortium Office to manage its own accounting processes independent form Bioversity International who provided hosting services since inception of the CGIAR Consortium in Montpellier. As an ERP platform, the One Corporate System (OCS, or Unit4 Business World) is used for accounting processes together with 9 Centers in 2014/2015. Departing personnel in the Consortium Office that were not replaced until early March 2016, and the resulting limited capacity over early months of 2016 presented a significant challenge with the go-live and stabilization process of OCS. Special attention is required in 2016 to make full use of the OCS capabilities and to achieve a smoother operation during the year and a less painful year-end closing process.

Table 2: Preliminary unaudited financial results

Explanatory notes on material variances (10% or more):

Board Fees & Insurance: The Board Chair voluntarily reduced the honorarium normally payable to her in the role of Chair for the 2015 calendar year to respond the challenging 2015 budget environment. Two additional independent members of the Consortium’s Audit and Risk Management Committee (ARC) joined in 2015. Their fees are accounted for under consultancies.

Consultants: This includes the modest honorarium paid as consultancy fees for the ARC members, and higher than expected consultancies to support the Consortium Board’s Science, Programs and Partnerships Committee for the review and recommendations on the CRP2 pre-proposals.

Building Management and Operational Costs: First year of full operation of the Consortium of its own facilities, resulting in lower than assumed cost

Operating Expenses: Remaining costs from Bioversity International hosting arrangement

Budget Adjustment: In March and July budget reallocations were implemented and as aresult a budget reduction of $0.2 million from $6.932 million to $6.731 million. Unbudgeted Income: Unbudgeted shared services income, additional cost recovery and higher than anticipated exchange rate generated additional income Internal Audit Excess Expenditures: The IAU finished the year with excess expenditures of $0.697 million. Centers were not willing to absorb the over expenditure which were partially the result of canceled Center audit engagements due to the significant budget reductions imposed by reduced donor receipts. Since the IAU accounting support was moved from IRRI to the Consortium, there was no other way to cover this over expenditure than for the Consortium to absorb this cost.

Consortium BudgetBudget

2015

(US$)

Expenditures

Dec. 31, 2015

(US$)

Variance

(US$)

Variance

(%)

Board Fees & Insurance 299 222 77 -35%

Staff Costs 3,863 3,614 248 -7%

Consultants 1,321 1,505 (184) 12%

Travel 634 591 43 -7%

Building Management and Operational Costs 156 118 38 -32%

Administrative Expenses 208 229 (20) 9%

Operating Expenses (1) - 18 (18) 100%

Meetings 249 236 13 -5%

6,731 6,534 197 -3%

Budget Adjustment 201 201

Total Consortium Expenditures 6,932 6,534 398 -6%

Unbudgeted Income (203) 203

Internal Audit Excess Expenditures 697 (697)

Total Consortium Financial Result 6,932 7,028 (96) 1%

All ammounts in Thousand US$

Total before budget adjustment



Part B – Early update on progress on key priorities for 2016 This part includes the following two sections:

1. Progress review of key priories within the 2016 PoWB 2. Consortium Office staffing overview

1. Progress review of key priories within the 2016 PoWB

1.1 Background to priority setting The Consortium 2016 PoWB, as approved by the Fund Council at its 14th meeting, was prepared in the context of the ongoing transition discussions. Key operating assumptions that informed the preparation of the 2016 PoWB included: a. With effect from 1 July 2016, or shortly thereafter, the CGIAR system will transition to

a new governance model and organization structure, headed by a CGIAR System Council and supported by a CGIAR System Office.3

b. It is in the best interests of the system as a whole, that the Consortium hands over the existing organization (building, assets and staff) to the new System Organization on a “going concern” basis, to enable a smooth transition rather than winding down the current organization and starting over. This was the premise of the budget prepared and approved by the Fund Council in November 2015, including the assumption that all funds allocated for the 2016 budget that have not been committed by the time of the establishment of the CGIAR System Office would be transferred to the new office.4 The Consortium budget approved by the Fund Council in the amount of $7.167m is funded by $6.62m of W1 funds and $0.55m income from other sources.

c. The discussions and deliberations between the funders, the centers and other stakeholders, including the Consortium in the lead up to the transition would result in clarity on the tasks and functions of the new System Organization, the successor legal entity to the Consortium, which may require adjustments to the 2016 PoWB in the second half of 2016. That would be for the System Council to determine.

d. That, as set out in approved Fund Office CY2016 Work Program & Budget5, the Fund Office 2016 budget includes the costs of convening the first meeting of the CGIAR System Council in July 2016. However, the responsibility for delivering that meeting will rest from a practical perspective with the staff who will serve the System Organization with effect from early July 2016, working in close collaboration with the Transition Team and Fund Office through to end June 2016.

3 Decision of the CGIAR Fund Council at its Thirteenth Meeting, 28-29 April 2015. 4 Paragraph 55 of the draft Transition Plan issued on 5 August 2015. 5 Refer page 10, http://cgiarweb.s3.amazonaws.com/wp-content/uploads/2015/09/2016-Fund-Office-

Workplan-and-Budget.pdf

http://cgiarweb.s3.amazonaws.com/wp-content/uploads/2015/09/2016-Fund-Office-Workplan-and-Budget.pdf

http://cgiarweb.s3.amazonaws.com/wp-content/uploads/2015/09/2016-Fund-Office-Workplan-and-Budget.pdf



1.2 Progress against key 2016 priorities Taking into account the assumptions set out above, the Consortium continues to focus on the following four priority areas of work. Priority area 1: CRP 2nd Call: The top priority is clearly to do everything the Consortium can to put the strongest possible CRP2 investment portfolio in place, and help mobilize the resources necessary to implement this work following the Consortium Board’s 19 December 2015 approval and launch of the 2nd Call Full Proposal document. Related tasks to deliver on a strong 2017-2019 first phase of the next generation of CRPs, and associated platforms are set out below, with their status to end March 2016 indicated. Table 3 – CRP related actions

No Action/area of work Status to March 2016

1 Development and launch of CGIAR’s first online proposal submission tool to facilitate the technical and financial review of the proposals, and facilitate the value-for-money analysis across the portfolio of CRP’s.

To ensure the standardization of submissions from the 12 CRPs and 3 Platforms for the next generation of research proposals, the Consortium Office partnered with Fujitsu ‘RunMyProcess’ to build a cloud-based online proposal submission tool following the guidance document published on 29 December 2015. The development process started in November 2015 and the tool was released 1 March 2016. As part of the process, testing and feedback sessions with some Centers/CRP’s were conducted in mid-February 2016. In addition, 3 virtual training sessions for Asia, Africa and the Americas were conducted where all CRPs and Platforms could participate and raise questions. The Consortium Office recognizes that this first deployment of the CRP2 submission tool was not as smooth as desired or anticipated. The Consortium will review the experience of tool development and proposal submission to ensure that no program or platform was penalized for any issues beyond their control. Early feedback is that the key, although not sole challenge, was retention of data. Going forward, the Consortium Office is committed to collating feedback from submitters on what worked and what did not and to develop a plan of action in time for the CRP2 full proposal re-submission period (post ISPC review), that addresses the weak points of the tool while capitalizing on its strengths, and exploring whether the tool itself can provide objective data to support this review. Whilst recognizing the challenges experienced during this first roll-out of a single proposal submission tool, the process to date has served to reduce ambiguity in the interpretation of the CRP Guidance, provided the framework through which CRPs provide submissions which adhere to the requests of the ISPC/Fund Council and provided a basis to create a database of performance and budget metrics that can be used for value for money analyses. The aim will be to ensure proper functioning of the tool and an effective process




for CRP and platform proposal revisions between mid-June and 31 July 2016, in the light of ISPC comments. On current plans, and subject to ongoing discussions, the online tool will be opened again for submission from 27 June – 31 July 2016 for CRPs and Platforms to re-submit modified proposals, if so required as a result of reviewer’s comments. In the longer term, the online tool may be extended to support the new CGIAR System Office in monitoring and reporting program activities, when the new CRPs and Platforms become operational in 2017.

2 Programmatic review of CRP 2016 Programs of Work and Budget

The 2016 Program of Work and Budget for CRPs are currently being reviewed by the Consortium Office’s Science Team and relevant feedback will be provided to the Lead Centers and CRP Directors, as a substantive contribution to ensuring strong 2016 performance, including as a key building block for the 2017-2022 for those research actions that will be taken up in the next generation CRPs.

3 Contributions to the resource mobilization strategy – particularly development of the “business case” (the value proposition) at portfolio level, together with key strategic partnerships and meetings related to resource mobilization

As ongoing support to communicating the value of CGIAR investments and thus supporting broad resource mobilization efforts, the Consortium has prepared an Investment Case document and slide deck for the 2017-2022 research portfolio and has presented the material to the Bill and Melinda Gates Foundation as a first test of the materials.

With other inputs, including from Centers and the Fund Council’s Senior Steering Group (SSG) on RM the Consortium will extrapolate on this material and prepare, by end June 2016, a substantive Investment Case document to support ongoing resource mobilization efforts as the new System Organization takes on broad responsibility for these actions.

Despite continuous engagement with the SSG though, RM efforts continue to be disjointed through the multiple entry points to the topic, against the expectation that there would have been much earlier harmonization of the RM efforts between CO and FO, and in close cooperation with the RM community of practice (RM-CoP) to ensure a cost effective approach to reaching out to new and existing donors. CO has kept increasing the visibility and presence of CGIAR high level representatives (CEO and Centers DGs) in international events, and is finalizing a revised application for GCF accreditation. Building upon learnings from the RM-CoP work in 2015, CO is also developing the future System Office’s Salesforce Customer Relationship Management (CRM) database with Centers, so as to setup targeted development strategies with existing and future investors.

4 Preparation of Consortium management responses to the IEA CRP evaluations, and IAU CRP advisory

(i) Analysis of IEA reviews of the Livestock and Fish, Roots Tubers & Bananas and GRISP CRPs completed during the first quarter of 2016, including review of CRP management responses, and management responses prepared, to inform the Consortium Board on key issues and enhance the preparedness of CRP submissions in March 2016.




audits, and ensuring that lessons learned find their way into CRP development process

(ii) Management responses were also completed in March 2016

for two Internal Audit Unit advisory engagements commissioned by the Consortium Board in 2015 in the discharge of the Consortium’s responsibilities under the Joint Agreement (clause 2.4, relating the use of W1 and 2 funding), comprising: a report on the overall control environments at CRP level; and a report for the Genebanks. The IAU reports, with Consortium management responses, have been shared with the Center Director Generals, the Consortium CEO, and the Consortium Board.

5 GCARD3 consultations and meeting preparation and associated processes such as the site integration (or country coordination) aspects

All 20 GCARD country consultations are now completed and the GCARD3 global event scheduled for early April 2016 has been prepared with significant presence from CRPs and Centers. The Consortium is also seeing strong agreement being reached on site integration plans to be submitted at the end of April 2016.

6 Support and facilitate the development of plans to make Centers and CRPs Open Access.

(This project is funded from extra-budgetary resources and not from the Consortium core budget. The Open Access/Open Data team is hosted at the Consortium Office)

Results of a recent survey indicate that 13 of the CRPs indicated they were using or planned to use the implementation plan template provided by the Consortium Office as the starting point for preparing their OA/OD Implementation Plan. Three other respondents indicated they were unsure. These responses are consistent with the plans that have been shared with the Consortium Office up to this point, and heartening as a move towards consistent OA/OD operationalization and appropriate needs identification and resolution.

A detailed CGIAR AO-AD Phase 1 project report, dated 1 January 2016 is a companion document to this report.

Priority area 2: Transition to System Council and Office The Consortium will engage on several fronts with the Transition Team, particularly its governance / legal specialists. The Consortium will also work closely with the Fund Office to ensure a smooth transition into the new System Office. The table below reflects the status of those actions that have had the highest priority to end March 2016



Table 4 – CGIAR system transition


1 Initiate process to amend the Agreement establishing the Consortium as an International Organization

On 23 February 2016, the Consortium Office and Transition Team jointly met with the Ministry of Foreign Affairs to discuss the transition arrangements. Based on those very productive deliberations, we will shortly present the French authorities with proposed edits to the International Agreement. Subject to further review by the Ministry of Foreign Affairs, there is potential for International Agreement to be amended through a streamlined process, and potentially as early as July or August of this year. If the streamlined process is unavailable due to the complexity of the final legal agreements, the amendment process may require a 12 to 18 month period.

2 Collaborate with the Transition Team, the centers and funders on the development of the new governance documentation required to give effect to the new System Organization from early July 2016, including ensuring appropriate preparation and approval of relevant transitional arrangements for 2016.

The Consortium is a participant of the “Big Picture Working Group”, has participated in the science and finance working groups, and is a member of the legal working group that is working in close cooperation with the Transition Team, the Centers and the funders on each of these groups. As requested by the Transition Team, the Consortium legal officers have prepared outlines of the first documents, and are contributing to the materials for the 2 -4 May 2016 meeting between centers and funders.

3 Collaborate with the Fund Office finance team and the Trustee to ensure a seamless transition of the financial management actions of the Fund Office can continue seamlessly after the transition to the new System Office.

Two virtual meetings and one face-to-face meeting have taken place with the Fund Office to coordinate the financial transition. The Fund Office has shared that the transition budget in the amount of $1.67m will be managed entirely at the Fund Office which, on current planning, is expected to close its financial operation sometime in September 2016.

4 Collaborate with the Fund Office concerning personnel wishing to take up the opportunity to work with the new System Office in 2016.

The Consortium Office continue to engage with the Fund Office in regard to personnel who may be interested in transferring to the new System Office with effect by not later than 1 July 2016, in accordance with the paper presented to the November 2015 joint Centers/Funders meeting on HR issues. Respecting staff confidentiality, detailed information on those conversations is not provided here. Where Fund Office staff have indicated an interest in such a move, the Consortium Office has invited the Fund Office staff member to Montpellier, scheduled exploratory meetings, and is engaged in the development of agreed terms of reference for the role, should the transfer take effect.



Priority area 3: Annual cycle of reports and plans The third priority is the regular cycle of the various annual plans and reports to provide, particularly for CGIAR’s funders, sufficient information to continue to provide strong support across the system as a whole. The table below reflects the status of reports where significant action was undertaken to end March 2016. Table 5: Annual cycle of reporting


1 Preparation of the Annual CGIAR Center Consolidated Intellectual Assets Report (for submission by the Consortium to the Fund Council IP Group).

All 15 Centers have delivered their 2015 Intellectual Assets reports to the Consortium Office, as required under the reporting requirements of the March 2012 approved CGIAR Principles on the Management of Intellectual Assets. The Consortium Office Legal Team is reviewing the reports and following up with Centers to request clarifications and/or further information, where necessary. The 2015 Consolidated Intellectual Assets Report, prepared by the Consortium Office based on the Centers’ reports, will be submitted to the Fund Council’s Intellectual Property Group by end March 2016. The IP Group will then visit the Consortium Office in April 2016 to discuss the proposed final report, provide inputs, and prepare their own report, to be included as an independent chapter in the final report that will be approved by the Consortium Board by 30 June 2016, and submitted to the System Council thereafter for discussion and endorsement.

Looking forward, by 31 May 2016, Center Boards will provide to the Consortium the annual written statement of assurance that such Centers has, during the preceding year, complied with the CGIAR IA Principles and, in particular, with the provisions on sound management and maximizing global accessibility and impact.

2 Preparation and approval of 2015 Consortium Audited Financial Statements.

The Consortium expects that the 2015 Consortium Financial Statements will receive, once again, an unqualified external audit opinion by early April 2016. That opinon and the statements will be presented to the Consortium Board for approval after consideration by the Audit and Risk Management Committee on 19 April 2016.

The consolidation process for the elaboration of the CGIAR financial report is expected to start early in April 2016 if all Centers are able to provide the audited Annual Financial Center Statements and if the L-series reports will be provided to the Consortium on a timely basis.



Priority area 4: Risk management: The final priority is to ensure that a well-governed and run entity is handed over to the new System Organization. A holistic risk assessment has to be conducted and a report prepared on key strategic system-wide risks – and then monitored over the implementation period for the transition, on and from July 2016. Table 6: Risk management


1 Risk management process, monitoring, and oversight to be fully embedded. Workshops will be held in the CO to identify the key risks within the various departments; their causes; existing and proposed controls; probability of occurrence; impact; risk rating; mitigating actions; additional controls to be implemented; and owner of the risk.

Risk management takes place on a weekly basis as part of the weekly Leadership Team meetings. Two specific system wide advisory audits on Fraud and ICT Assessments are planned for the months of May and June 2016, which provide further support for the transition from the Consortium Office to the System office.

1.3 Other areas of ongoing focus Additional to the four priority areas of action, the approved Consortium 2016 PoWB included other ongoing work within the capacity of the office, so long as it did not provide a distraction from the four top priorities outlined above. Annex 1 to this report sets out the comprehensive list of planned actions over 2016, as prepared in end 2015. The majority of those actions fall in the April-December 2016 implementation period, and thus to be reported against at end 2016, subject to such amendments as may be directed by the System Council from July 2016. Specifically on policy development actions discussed with Centers during the October 2015 – March 2016 reporting period for document, or pending during that same period, the table below sets out the current status. The table reflects the challenges experienced in seeking to take forward policy initiatives that were, when developed, supported as being in the best interests of the system. However, the transition discussions have had a material impact on the appetite for Table 7: Policy development iniatives and their status to 31 March 2016


1 CGIAR Indirect Cost Allocation Guidelines' comprising document No.5 in the Financial Guidelines Series (“FG5”), and forming part of the "CGIAR Common Operational Framework"

Following Consortium Board approval, FG5 was submitted to the Fund Office on 11 October 2013. The Fund Office sent the document to Fund Council Governance Committee (“FCGC”) on 20 Feb 2014 for comments. A note was sent by Fund Office to the Consortium Office on 6 April 2014 on behalf of FCGC requesting information on process of consultation, and a memo detailing this was provided on 5 May 2014 for FCGC meeting on 6 May 2014. The Consortium was advised in July




Consortium Board approved, 15 June 2013 (CB12)

2014 that efforts were being made to encourage progress on the matter. In November 2014 the Fund Office sought opinion from IAU on 'professional standard' of FG5. The IAU Director wrote to FO on 13 November 2014 seeking clarification on the level of work expected, with no reply received. The FO contacted the CO in February 2015 seeking clarification on element of indirect cost rates to which a response was provided in July 2015. No additional engagement has taken place. The document was submitted by the Consortium 700+ days ago.

2 CGIAR Consortium Diversity and Inclusion Strategy 2016 – 2020

Consortium Board approved 8 October 2015.

The document was submitted in advance of FC14 as an outstanding action from FC12.

On 1 December 2015 the Fund Office circulated the Strategy to the Fund Council for input by 11 January 2016, inviting detailed review and feedback on this revised document from FC members. The Fund Office advised the Consortium that no comments were received.

On 9 March 2016, the Fund Office advised that as a next step, a targeted note to 3 key donors with gender specialists had been sent. On 8 April 2016 the Consortium Office received from the Fund Office anonyomized information from one donor, noting a number of points to consider. This was subsequent to an earlier mid-March communication from the Fund Office that, perhaps in the circumstances of the transition, the document should come instead to a System Council meeting at an appropriate time in 2016.

The document was submitted by the Consortium 120+ working days ago.

3 Re-stated CGIAR Investment Policy Guidelines

Consortium Board approved 2 November 2015 (CB22)

* A full restatement of the Investment Policy Guildeines prepared in 2013, as submitted to the Fund Office for Fund Council review in October 2013, and Fund Council Governance Committee inputs received in March 2015.

On 1 December 2015 the Fund Office circulated the Guidelines to the Fund Council for input by 11 January 2016. No comments were received.

Following indication from the Fund Office that the matter was added to the agenda of the 3 March 2016 meeting of the Fund Council's Governance Committee ('FCGC') to ask that they have the document reviewed for a later discussion, the Consortium Office was advised in writing by the Fund Office on 16 March 2016 that the preference of donors is to defer the approval decision to the first or second System Council meetings (July or November 2016).

Subsequently, on 8 April 2016 the Consortium Office received from the Fund Office anonyomized information from two donors, noting a number of points to consider. It is presumed that this will now be a document that will be considered at an appropriate time by the System Council.

The document was submitted by the Consortium 110+ working days ago.




4 CGIAR Staff Security Accountability Framework (a non-Common Operational Framework, yet system-wide policy)

Consortium Board approved 8 October 2015

Centers were asked to formally approve the Framework, noting that Centers had contribututed to its development, and were participants at Committee and Consortuim Board deliberations, with those present supporting the Framework moving forward.

On 18 February 2016 the Consortium was informed by the Center DGs representative to the Consortium Board that the Center DGs were unable to support the Framework, with timing of the transition being identified as key reason for this outcome.



2. Consortium Office staffing overview

Staffing in the Consortium Office remains constant at the same level as for 2015. This is on the basis that whilst during the transition it is agreed that the Consortium Office will not create new positions, it is further agreed that the Consortium will recruit replacements for departing staff to maintain the office as a going concern (as referred to in the Paper on HR issues during the transition). The table below summarizes the current staffing position: Table 8: Consortium Office staffing at March 2016

CO Staff 31 March 2016 Gender Location

Female Male Total Montpellier Other Total

Employees 18 13 31 28 3 31

Fellows 2 1 3 3 0 3

Consultants 1 0 1 0 1 1

Total staff 21 14 35(*) 31 4 35

(*) Includes overstaffing by 1 employee because of maternity leave


FC14, 4 – 5 November 2015, Washington D.C. of 24

Annex 1 – 2016 CGIAR Consortium Key Actions and Outputs/Deliverables

Key activities 2016 outputs / deliverables Target completion date

1. Policies/Guidelines and Standards - development and cyclical revision

1.a Common Operational Framework (approved by/involves engagement with the Fund Council): (e.g. CGIAR Financial Guidelines Series numbers 1 to 6; Investment and Reserves policies; CRP Monitoring Principles and Reporting Templates; CGIAR Principles on the Management of Intellectual Assets; CGIAR –FC Dispute Resolution Policy).

As relevant to the priorities set during the Transition Period, selected financial guidelines and other policies to be revised and drafts readied for tabling to the appropriate structures of the new System Organization.

(a) Drafts of revised versions of the following documents to be submitted to the CGIAR System Council by 31 October 2016, subsequent to having been prepared by the Consortium Office and incorporating input from the Centers:

o FG2: CGIAR Accounting Policies and Reporting Manual;

o FG4: Guidelines for Preparing the 2010-12 Medium-Term Plans and the 2010 Financing Plans;

o Restated Investment Policy Guidelines; o CRP Monitoring Principles and Reporting Templates.

(b) The Consortium Office will prepare revised drafts of the

following documents and submit them, no later than 30 November 2016, to the Centers for consideration. Center-endorsed versions will be submitted to the CGIAR System Council no later than 31 March 2017:

o FG3: CGIAR Auditing Guidelines; o FG5: CGIAR Cost Allocation Guidelines; o FG6: CGIAR Procurement of Goods, Works and

Services Guidelines. (c) By 31 December 2016 the Consortium Office will have

undertaken the biennial review of Principles on the Management of Intellectual Assets in consultation with the Centers and the Fund Council, and sought the approval of the Consortium Board.




1.b CGIAR system wide policies, guidelines and standards (not approved by Fund Council): (e.g. Risk management process; Communications Strategy; Intellectual Assets Guidelines; Good Governance Framework).

(a) Risk management process, monitoring, and oversight to be fully embedded. Workshops will be held in the CO to identify the key risks within the various departments; their causes; existing and proposed controls; probability of occurrence; impact; risk rating; mitigating actions; additional controls to be implemented; and owner of the risk.

(b) Work commenced in 2015, geared towards identification of key strategic risks for the whole system, will be continued.

(a) A comprehensive risk management framework and charter to be presented to the Audit and Risk Committee, and subsequently, to the Consortium Board in Q1 2016.

(b) Risk management reports to be submitted to the Audit and Risk Committee and Consortium Board (and their successors), on a quarterly basis. These will incorporate the escalation and de-escalation of specific risks, premised on the risk statements in the financial statements of the Centers and the Consortium.

(c) A comprehensive escalation (and de-escalation) policy to be agreed between the Consortium and Centers by 31 December 2016 to address system-wide whistle-blower claims, thereby ensuring that the right issues are being addressed at the right level (note: Each Center, and the Consortium, has its own internal whistleblower policy).

2. Core business: Managing annual CRP cycle

Programmatic: Continue to manage and lead the existing CRP portfolio.

Ongoing.

Preparation of the 2015 CRP Annual Report.

The report to be submitted for approval by governing organs by 30 June 2016 and published by 31 August 2016.

Implement the Strategy and Results Framework.

Ongoing.

Evaluate / review and approve CRP Full Proposals.

From 1 April 2016 until end of the year.

Develop model partnership agreements for the CRPs to use in the second round.

To be submitted for approval by the CGIAR System Council by 30 September 2016.




Financial:

Guidelines for Results based budgeting and reporting for CRPs agreed with CRPs and Centers.

To be submitted for approval by the CGIAR System Council by 30 September 2016.

Establish baseline for reporting and transaction costs.

31 March 2016.

Preparation of quarterly CRP finance reports.

To be extracted from CRP quarterly reports submitted by individual Centers (deadline 1 month post quarter-end) and reporting per CRP to be sent to Lead Centers within 1 week.

Develop funding agreements for the second round of CRPs.

30 November 2016.

Intellectual Assets: Preparation of the Annual CGIAR Center Consolidated Intellectual Assets Report (for submission by the Consortium to the Fund Council IP Group).

31 May 2016.

CGIAR Annual Report: Comprised of 4 core reports (Portfolio, CGIAR Financial, Consortium Financial, and IA Report) plus an overall CGIAR Annual Report

2015 Consortium Audited Financial Statements.

Audited version to be ready by 31 March 2016 and submitted for Consortium Board approval no later than 7 April 2016.

2015 CGIAR Financial Report to be complete and approved by the Consortium Board and delivered to the Fund Council.

31 May 2016.




2015 CGIAR Intellectual Assets Report to be complete and approved by the Consortium Board and delivered to the Fund Council.

30 June 2016.

The 2015 CGIAR Annual Report. To be submitted to the governing structures by 31 July 2016.

3. Shared standards / systems / services (development and service provision)

One Corporate System: Develop common reporting tool for both OCS and non-OCS Centers to ease consolidation of information.

The common reporting tool will be finalized by 30 June 2016 and implemented effective 1 January 2017.

OCS facilitating common reporting Participate in the OCS Steering Committee to improve collaboration in development of phases 2 and 3.

Open Access: Support and facilitate the development of plans to make Centers and CRPs Open Access. (This project is funded from extra-budgetary resources and not from the Consortium core budget)

All 15 Centers develop Open Access Implementation Plans.

(a) The Open Access development plans are targeted to all be finalized by 30 November 2016.

(b) A proposal to extend funding will be submitted on 15 September 2015. The expectation is that, factoring funder review and comments, the approval will be received before 31 March 2016.




Other Shared standards, systems or services: Office365/Collaboration Platform

2 CRP collaboration platforms using CGIAR Consortium-wide Office 365/SharePoint online implemented.

30 June 2016.

Shared Services Business Plan: Identify and implement 2-3 initiatives as proof of concept to implement Shared Services

Shared Services and Value for Money concepts embedded in the CRP second call.

To be elaborated in the Call for Full Proposals due in November 2015. The Full Proposals are to be submitted by 31 March 2016.

Shared Procurement: Negotiate agreements for ICT, GIS, services and Libraries on behalf of Centers

Shared Agreements which represent business of over 1.2M negotiated.

31 December 2016.

In collaboration with AIARC tender for the following services: Emergency Medical Evacuation; Business Travel Accident; Security Tracking; Security Evacuation.

30 June 2016.

In collaboration with ICT group tender system-wide ICT services for email and identity management.

31 October 2016.

Shared Collaboration Tools Maintenance of Google Applications (cgxchange) service and support for CGIAR Research Centers and programs delivered.

31 December 2016.

Staff Security Initiative Staff Security Accountability Framework finalized and approved by Consortium Board

28 March 2016.

Travelers' tracking tool implemented in all Centers.




4. Communities of Practice/ Partner Relations (development and support)

Strategic Communication: internal and external

Maintain online media presence: web, social media, etc.

Ongoing across the 2016 year.

Brand recognition/ donor engagement Select participation in events. Ongoing across the 2016 year.

Partnership Development Develop CRPs Guidelines on Partnership. September 2016.

Run GCARD3 consultation process with GFAR through ca. 20 national and 3 regional consultations (incl. CAADP-CGIAR agenda development in Africa, and enhancing role of Embrapa in LAC consultation).


Develop Consortium strategic partnerships with major world-class research organizations and private sector.


Communities of Practice Coordinate and facilitate annual (or six monthly as required) meetings of Communities of Practice, including KM Leaders, Heads of Comms, ICT Leaders, CapDev, CLIPnet; Corporate Service Executives and HR.

By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders.

Coordinate Legal /IP CoP Coordinate and facilitate annual meeting of Community of Practice, and ad-hoc engagement with International Treaty governing body as required.

By 31 December 2016, meetings held, pending actions from 2015 implemented as appropriate, and follow up actions clearly articulated and allocated across key stakeholders.




5. Internal Consortium business

Good governance and compliance Good governance and compliance cont/d

Prepare documentation for and support Consortium Board and Fund Council meetings.

Meeting planned for April 2016; May 2016; July 2016; October 2016; and November 2016.

Support Committees. o Each 6 months: Science, Programs and Partnerships Committee; Governance and Policy Coordination Committee; Nominations and Evaluation Committee.

o Each quarter: Audit and Risk Management Committee and Audit Oversight Group (for Internal Audit Shared Services).

o Ad hoc as required.

Efficient financial management Annual reporting against Program of Work and Budget.

By 31 May 2016; and by 31 October 2016

Internal Monthly Management Accounts and Cash flow projections.

Within 15 calendar days after month end.

Legal transition to new Organization Legal transition to new Organization cont/d

Develop a new governance framework document and other legal documents as required.

31 July 2016, or as amended by Transition Team planning cycle.

Initiate process to amend the Agreement establishing the Consortium as an International Organization.


Amend or revoke System-wide or internal policies and guidelines.


Amend current CRP funding agreements to reflect single Organization status.


CGIAR Consortium Progress update October 2015 – March...

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