URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Udenrigsudvalget 2014-15 (2. samling)
URU Alm.del Bilag 5
Offentligt

VfM Evaluation of GGGI

2013-2014 v.7

April 03 2015

KPMG

Risk Consulting Service Group

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Contents

Global Green Growth Institute

19F Jeongdong Bldg.

15-5 Jeong-dong, Jung-ju

Seoul 100-784

Republic of Korea

April, 03, 2015

This report is prepared solely for the Global Green Growth Institute (GGGI) under the

terms of the engagement contract dated February 06 2015 and cannot be copied or

circulated, either in whole or in part, to any other parties or for other purposes other

than those stated in the Engagement Letter, without KPMG Samjong Accounting Co

p. s

prior written consent.

The data included in this report was obtained from GGGI, by April 03 2015. We have

no obligation to update our report or to revise the information contained therein to

reflect events and transactions occurring subsequent to April 03 2015

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Contents

List of acronyms and

abbreviations

Executive Summary

I. Objective, Scope &

Methodology

1. Objective

2. Scope and General Approach

3. Professional Standard Used

4. Procedures Taken

II. Limitations

III.

GGGI’s Gove a e

1. Institutional Systems

2. Staffing

3. Facilities

IV.

GGGI’s Co e Fu d

Project Management

1. Strategy and Planning

2. Mongolia Program

3. Rwanda Program

GGGI’s Ope atio s

Management

1. Procurement Management

2. Human Resource Managemen

3. Finance Management

VI. Enterprise

Resource Planning

VII. Conclusion

1. ERP

2. General IT

1. List of Document Required

2. Interviews

3. Simplified Process Maps

Appendix

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

List of Acronyms and Abbreviations

No.

Abbreviation

3Es

AFSC

BPG

BPM

COBIT

COP

COSO

CPF

CSU

DDG M&A or DDG

DoA

EAC

EDPRS2

ERP

FCPA

GGGI

GGP&I

GIS

GTC-K

HCA

HOL

INTOSAI

IWG

KDM

KSD

LDC

M&E

Mgt

MNET

MOU

NGDP

ODU

PAI

PAL

PPC

Meaning

Efficiency, Economy and Effectiveness

Audit and Finance Sub-Committee

Business Process Group

Business Process Management

Control Objectives for Information and Related Technology

Core Operating Process

Committee of Sponsoring Organizations of the Treadway Commission

Country Planning Framework

Corporate Service Unit

Curriculum Vitae

Deputy Director-General Management &Administration

Director-General

Delegation of Authority

Direct Contract

East African Community

Second Economic Development and Poverty Reduction Strategy

Enterprise Resource Planning

Foreign Corrupt Practices Act

Global Green Growth Institute

Green Growth Planning and Implementation

Green Investment Services

General Ledger

Green Technology Center Korea

Host Country Agreement

Honorarium

Headquarter

Human Resource

International Organization of Supreme Audit Institutions

Informal Working Group

Knowledge Development and Management

Knowledge Solutions Division

Least Developed Countries

Limited Evaluation

Monitoring and Evaluation

Management

Ministry of Nature, Environment and Tourism of Mongolia

Memorandum of Understanding

National Green Development Policy

Organization and Delivery Unit

Open Competition, $200.000-500.000

Process Asset Library

Open Competition, $500.000>

Purchase Order

Public-Private Cooperation

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

List of Acronyms and Abbreviations

No.

Abbreviation

QIR

QPR

R&R

RBM

SPC

UAE

UNEP

VfM

WPB

YTD

Meaning

Procurement request

Quarterly Implementation Report

Quarterly Portfolio Report

Roles and Responsibilities

Results Based Management

Strategy, Policy and Communications

United Arab Emirates,

Ulaanbaatar

United Nations Environment Programme

Value for money

Work Plan and Budget

Year To Date

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

GGGI is a relatively new international organization, gaining its status as an international organization in October

2012. Therefore, in early 2014 GGGI experienced problems in cash flow due to the timing of replenishments

by the donors. Although previously issued appraisal and / or evaluation reports of GGGI mention that GGGI

lacks internal control structures such as relevant policies and procedures, GGGI has implemented necessary

revisions to follow up on the comments so far.

Evaluation Criteria

Even though the project evaluation covers the period 2013

–

2014, evaluation ratings based on the sampling

tests heavily focused on results from the second half of 2014, because GGGI is a relatively new international

organization, and many changes and improvements have been observed during the fieldwork. For example, if

deficiencies previously noted in the Danish Appraisal Report were noted again in the test results, we

considered whether remedies and improvements have been implemented. If properly remedied, more value

and weight was put on the current operation and transactions status; therefore, if equal value and weight is

applied to the evaluation period, evaluation ratings would be lower than the ratings provided in this report.

Only the procurement, human resources, and finance management functions relevant to the Mongolia and

Rwanda programs were evaluated; we did not evaluate the entire procurement, HR, and finance management

performed in Seoul HQ. Furthermore, the transactions relevant to Mongolia and Rwanda were tested on a

sampling basis, and not all transactions were tested. For HR management, only one sample was selected and

tested due to the confidential nature of HR information. Although only one sample was tested the deficiency

indicated in the results was

dee ed to e e se ious a d thus HR a age e t as ated as

PARTIALLY

SATISFACTORY . Please ote that a e o se ati e app oa h as used to e aluate

the functions of GGGI.

The definition of evaluation rating is described below:

Satisfactory

- Internal controls, governance and procedures/processes were adequately established and

functioning well. No issues were identified that would significantly affect the achievement of the objectives

of the evaluated entity.

Partially Satisfactory

- Internal controls, governance and procedures/processes were adequately established

and functioning well. One or several issues were identified that may negatively affect the achievement of the

objectives of the evaluated entity.

Not Satisfactory -

Internal controls, governance and procedures/processes were either not established or

functioning well. The issues were such that the achievement of the objectives of the evaluated entity could

be seriously compromised.

Strategy and Planning Management

Satisfactory

Overall, 2013 and 2014 was a transformative phase for GGGI, which resulted in different planning document

e ui e e ts du i g the t o ea pe iods. GGGI s St ategi Pla

-2020 and Biennium Work Program and

Budget (WPB) 2015-2016 reflect a shift in organizational thinking and priorities, built on a common recognition

amongst donors and in-country stakeholders to demonstrate the case for green growth and deliver results on

the ground.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

A clear set of guiding principles, strategic priorities, and an integrated delivery model emerged from an

intensive strategic planning process through consultative platforms and intensive discussions, which included

six country visits, two Informal Working Group meetings, informal Donor Consultative Group meeting, and the

joint Audit and Finance Sub-Committee and Project Sub-Committee, and staff surveys

–

in order to reflect

lessons learned and build on bottom-up input.

The WPB is the operational tool for the Strategic Plan. The shift to a biennium timeframe allows for the

anchoring of project planning in a longer term horizon.

The launch of the Country Planning Framework, the derivative planning document for in-country programming

and any new project design, is aimed at delivering in-country results aligned to national priorities, and

GGGI s

corporate strategy and Results Framework. Going forward, the draft GGGI Results Framework will require

further refinement of outcomes/outputs (based on the aggregation of biennium project-level results),

inclusion of baseline, indicators, and target. At the project level, all project-level logical frameworks should be

completed, finalized, and nested within the corporate Results Framework. A methodology will have to be

developed to ensure nesting between project logical frameworks and corporate results framework for

meaningful aggregation of results

II. Project Management

A. Mongolia Project Management

Not Satisfactory

I ge e al, the Mo golia P oje t a hie ed its ai o je ti es. I li e ith GGGI s alue p opositio as the o l

international organization exclusively focused on green growth, GGGI provides integrated demand driven

suppo t fo Mo golia s p o-poor

green growth initiatives. Mongolia became a full member of GGGI in June

, i di ati g the alue the pla e o GGGI s se i es. Mo golia

was identified in the Strategic Framework

as the first country to proceed with the Country Planning Framework, and commitments were made to donors

to move the process forward vigorously. During a time of uncertainty with a change of government, GGGI was

still able to convene a key meeting that provided critical country driven content to both the CPF and a

government policy paper on green growth. It is because this meeting was convened that the CPF is still on

track.

However, even though the Mongolia project achieved its core big picture objectives, project management

process was not performed in a satisfactory manner throughout the project. During 2013 and first half of 2014,

issues existed but were unclear. However, review of Mongolia project management in the second half of 2014

indicated significant issues, as two abnormal transactions were noted from the Mongolia programs.

First, the Procurement and Recruitment process of the Mongolia Country Representative showed irregularities.

By tracing all relevant documents, the procurement process was shown to use both the procurement and the

HR processes. Violations also occurred in the budget check and approval process.

Second, 52 consultant contracts formed during the Mongolia program in December 2014 (34 consultants for

the Green Development Roadmap Project and 18 consultants for the Green Indicators Development Project)

showed deficiency in their effectiveness and efficiency. All of the 52 transactions violated the proper

Procurement sequence, as the final approval by the Head of Procurement was given right before the ending

date of the contract. Causal analysis did show that the issue was due to the Mongolia Program Country

Rep ese tati e s poo p epa atio of the P o u e e t Re uest; the Head of P o u e e t atte pted to e su e

that all required request documents were of proper quality. Furthermore, 83% of consultants procured were

related to the Mongolian Government, and were counterparties of the Mongolia program. Even so, payments

of USD 200

–

500 were provided to the consultants for participating in GGGI workshops without maintaining

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

detailed record of the reason for doing so. Providing payments is especially significant when dealing with a

government/government related party. Lastly, the regional director was found to have given Mongolia

Country Representatives permission to work during the weekends without documenting the reason

first

countries to proceed

s, which might be seen as a preferential treatment.

(Note: According to GGGI, the 52 consultant procurement contracts are related to two projects: 1) Green

Development Roadmap Project and 2) Green Indicators Development Project. The descriptions of services for

the Green Development Project was as follows:



Written contributions to the review and/or development of green development implementation plans

(i.e. roadmap)

Participation in working group sessions

These se i es ill ake up a iti al o po e t of the Go e

e t of Mo golia s a ilit to i ple e t its

National Green Development Policy. These services will also assist in the formulation and multi-stakeholder

it e t to GGGI s

-2020 strategic country framework for Mongolia.)

In conclusion, despite the overall satisfaction of the project by the client, definite room for improvements in

the Mongolia Project Management process were identified during the VfM procedure. Accurate and thorough

internal documentation that depicts the activities and the reasons behind the decisions made in country team,

including the changes in the budget, should be maintained in order to achieve effective project management.

The i te al p o edu e should also e follo ed to e su e that p oje t s isk is ei g a aged effe ti el

Therefore, it is hard to conclude that the Mongolia project management was performed in an effective manner.

B. Rwanda Project Management

Satisfactory

In Rwanda GGGI provides policy advice and technical support to the government to implement its Economic

Development and Poverty Reduction Strategy (EDPRS2), which is currently in the second phase of

implementation (2013-2

8 . R a da s Ca i et i Ap il

app o ed GGGI s Esta lish e t Ag ee e t to

show its commitment to work together with GGGI to achieve the development of secondary cities as green

cities with green economic opportunities.

The Government of Rwanda (GoR) has decided to strengthen six secondary cities as poles of growth through

EDPRS 2. This is to transform the economic geography of Rwanda by facilitating and managing urbanization

and promoting secondary cities as poles of economic growth. At the same time,

EDPRS i o po ates a g ee

e o o

app oa h to e o o i t a sfo atio , ith t o i te e tio s elated to the p o otio of g ee

urbanization as well as green innovation in the industrial and private sectors.

I li e ith GGGI s alue p opositio a d

strategy to move closer to implementation, GGGI as part of its 2015

and 2016 work is currently in discussion with the GoR to develop the institutional structures and capacity

needed to develop a Green City Investment Strategy and pipeline of bankable projects.

We found some delay of the project schedule and deliverables. This was neither due to lack of project

management skills nor due to the incompetency of the consulting firm. It was due to a combination of reasons:

the considerable time associated with consultation, and the lack of the presence of a permanent Rwanda team.

Even though we found some minor exceptions, the overall evaluation result of the Rwanda program

management is satisfactory. However, the Rwanda team needs to improve internal document management

skills and be cautious not to violate procurement procedure.

III.

Procurement Management

(For Mongolia and Rwanda Programs)

Partially Satisfactory

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

To safeguard best Value for Money, the procurement for GGGI has constantly been managed by the

P o u e e t U it, i ludi g ea l i ol e e t i the TOR s a d spe ifi atio s, to e ha e o petitio , se u e

clear criteria that are possible to evaluate, chair and coordinate evaluation meetings, and perform quality

assurance on the contracts. Contract management has been introduced, to ascertain quality performance with

the suppliers, including requiring improved performance or contract termination, if necessary. Terminating

the Rwanda contract is a good example of such effective contract management.

FINDINGS

Procurement management was decentralized until September 2013, with each division independently

managing procurement functions

si e p o u e e t u it did ot e ist as pa t of GGGI s Ma age e t a d

Administration division.

The main function of the procurement unit is to acquire goods and services at the best possible cost to meet

the needs of the acquirer in terms of quality, quantity, time, and location. Individual Consultants are procured

by the procurement unit and not the Human Resources unit.

Internal Controls of the procurement process were verified to be well designed with respect to authorization,

review, and segregation of duties. However, some exceptions were identified in following these controls

during the practical implementation of procurement processes. The procurement team has taken remedial

actions in the past by notifying staff of the needed compliance measures.

RECOMMENDATION

There is definite room for improvements for the procurement management of GGGI. First and foremost, it is

highly recommended to explicitly state the standard language to be used for the deliverables in the

p o u e e t o t a t. Fu the o e, the p o u e e t p o edu e s o plia e status fo ea h ou t should

be used as one of the standards of measuring Project and individual performance. Lastly, considering the

inherent high risk of the procurement function, it is strongly recommended that the number of procurement

staff be increased to ensure that work is performed in a more stable manner.

CONCLUSION

Overall the performance of the Procurement Management related to the Mongolia and Rwanda programs is

partially satisfactory. Although the Head of Procurement and the procurement staff appropriately followed the

organizational policies, exceptions in procurement processes were found in practice. However, this was due to

the procurement request itself and not due to a fault by the procurement staff. The efficiency of procurement

management was affected because procurement requests were often submitted very near the deadline by the

end users. Consequently the quality of procurement requests and the relevant supporting documents were

poor, forcing the procurement staff to repeat the same requests to the end user. On the other hand,

procurement management function was effective in accomplishing its main objective of acquiring the goods,

services, and outsourcing at the best possible price in order to meet the needs of the acquirer in terms of

quality, quantity, time, and location, despite the frequent sequence violations by the end user and the lack of

manpower in the Procurement Unit.

IV.

Human Resource Management

(For Mongolia and Rwanda Programs)

Partially Satisfactory

The main objective of evaluating Human Resource (HR) Management is to assess the economy, efficiency, and

effectiveness by reviewing the Design of Process and the quality of deliverables in each step. The scope of the

HR process evaluation is limited to supporting processes related to the Mongolia and Rwanda Country

programs which happened in 2013 and 2014.

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Executive Summary

As of now, the Human Resources Unit is entrusted with matters relating to staff members. Matters relating to

consultants are entrusted to the Procurement Unit.

During 2013, the HR work focused on implementation of the April 2013 approved Staff Regulations and Rules,

and the recruitment of a significant number of positions created for the new organization. At the same time

the HR function adapted to the change in the culture of the organization, moving from K-GGGI (a Korean

organization) to an international organization. In January 2014, responding to expected future needs GGGI

provided four positions for the Human Resource Unit, and recruited two international staff, the Head of HR

and the Compensation and Benefits Specialist.

The HR Team functions under four pillars: Talent Acquisition; Talent Management; Rewards and Recognition;

and Good Governance. The impact in bringing these skills and clarifying its accountability resulted in significant

cost savings for GGGI and its staff, hence Value for Money; and enhancing recruitment and performance

management modality, hence contributing to workforce effectiveness. The examples of cost savings include:

elimination of Payroll administration fee, restructuring benefit schemes in a legally proven tax effective

manner, clarifying GGGI obligations to participate in national social security programs for expatriates, and

negotiating lower premiums with service providers. More rigor and due process was brought into staff

recruitment, which resulted in wider outreach to the talent pool and better match of skills to the requirements

of the position. Quality of performance management mechanisms improved significantly by bringing in the

discipline to evaluate against annually agreed individual targets. Further, the discipline to cascade

Departmental and Organizational goals in the Biannual Work Program Budget, approved by the Council, to

individual goals was introduced in late 2014, to enhance organizational effectiveness.

FINDINGS

The Human Resources Unit currently does not manage the manpower in project management processes. HR

neither provides guidance nor enforces strict directions on the consultant progress report, and does not make

enough effort to ensure that the hours worked and the tasks performed by the consultant are accurate.

Furthermore, we observed that the role of the Procurement Unit becomes very similar to that of HR's for

procurement of consultants with a total amount over 80,000 USD. In addition, the number of procurement

staff was found to be very low considering the number of procurement contracts processed.

RECOMMENDATION

As suggested from the findings, there is definite room for improvements for the human resources function of

GGGI.

HR needs to engage more actively when dealing with manpower in the project management process. The

timesheets of time-based consultants are not being managed properly; lo delivery-based consultants, which

requires expertise of the reviewer, was made more difficult because the final output was in the local language.

Since the quality assurance procedure is ineffective, procurement contracts almost always lead to payment

which indicates high risk.

With o sulta ts o stituti g % of GGGI s o kfo e, if HR fails to e fo e st i t

directions and guidelines on consultants working hours and progress reports efficiency and effectiveness could

be critically affected, which could possibly lead to the risk of fictitious employment.

Furthermore, considering the number of members in the Procurement team and the number of procurement

contracts, some roles performed by the Procurement team should be transferred to the Human Resources Unit

to improve overall efficiency. For example, when the contract amount for an individual consultant is above USD

80,000, the hiring process of a consultant becomes similar to that of a general staff member. The combination

of roles will reduce the burden of workload felt by the Procurement team.

CONCLUSION

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

We have selected and evaluated one sample because the Human Resources Unit deals with confidential

personal information. The Mongolia country program hired an Ulaanbaatar (UB) -based, national senior

program officer in September 2013. In May 2014, the half-time Seoul-based country program manager

transitioned from GGP&I to KDM at which point, the regional director was officially assigned the role of Acting

Country Program Manager in addition to her other duties. The recruitment process—as approved by GGGI

Council in December 2013—fo

GGGI s fi st UB-based

Mongolia country representative began in Q1 of 2014,

but suspended due to the freezing of new hires related to austerity budgets. A second recruitment process

began in Q2, after confirmation that sufficient funds were available into the future for the full-time, in-country

representative.

The

test esult i di ated that GGGI s

Human Resources Unit was not acquiring the appropriate number and

quality of staff at the appropriate cost.

E e though p o u e e t of a o sulta t s se i e is do e

the

Procurement Unit,

a agi g the o sulta t should ha e ee HR s espo si ilit ; ho

ever, HR failed to

provide guidance to consultants on the periodic submission of timesheets and progress reports, and also did

ot o ito the epo ti g p o ess effe ti el

he o sulta ts o pose % of GGGI s o kfo e, hi h

raises doubts on the quality of their final deliverables. On the other hand, improvements have been made in

the area of payroll and compensation management. Despite the improvements, it was still hard to conclude

that the recruiting function operated efficiently because the function was divided between Procurement and

HR. Even though large international organizations divide the HR and procurement function, doing so at GGGI

–

as a relatively new and small international organization - does not necessarily lead to a better result. In

lusio , GGGI s HR fu tio is ot ope ati g effi ie tl o effe ti el .

Finance Management

(For Mongolia and Rwanda Programs)

Satisfactory

The main objectives of evaluating the finance procedure is to assess its economy, efficiency and effectiveness

by reviewing the process design and the quality of deliverables in each step. The scope of finance process

evaluation is limited to the supporting processes related to Mongolia and Rwanda Country programs in 2013

and 2014.

FINDINGS

No deficiency or flaws were found in the budget policy. The overall internal control of the budget process

was well designed with respect to Authorization, Review and Segregation of Duties. However, we observed

that exceptions to the process were made in actual practice in some cases.

GGGI s t a el poli e ui es staff a d Co sulta ts to su it

a mission report within seven days from the

completion of the journey in order to apply for expenses reimbursement. However, there were delays in

submission of mission reports in some instances. Furthermore, the budget check process is unclear.

CONCLUSION AND RECOMMENDATION

Overall, performance of the Finance department related to the Mongolia and Rwanda programs is

satisfactory. GGGI has put in considerable effort to improve the efficiency and effectiveness of the Finance

department. Updating details of the travel expense management policies, improving the quality of work plan

and budget, and practicing of prudent cash planning are

so e of the e a ples of GGGI s a o plish e ts.

However, room for improvement still exists. The budget check function can be improved by ensuring that

only transactions with sufficient documental evidence are processed, and recording the budget check

process in more detail to facilitate completeness and effectiveness and to prevent miscommunications

between departments.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Executive Summary

VI.

Enterprise Resource Planning (ERP)

Satisfactory

The main objective of evaluating the ERP development project and the general Information Technology (IT) is

to assess hethe the p oje t e e utio a d IT a age e t e e e e uted a o di g to the Es e o o ,

efficiency and effectiveness) by reviewing the development of progress, project management and general IT

management in 2013 and 2014.

Professional Standards such as COSO

–

internal control framework and COBIT-5-IT management framework

were used as references to determine whether GGGI is following the appropriate operating and procurement

procedures.

FINDINGS

The fi di gs o GGGI s ERP p oje t a e as follo s:

The extension of the project schedule is a result of the phased roll out of the ERP system

Approximately 90% of the total expenditure disbursed consists of capitalized assets in accordance

with International Finance Standards (IFS)

The change of the project manager was factored into the rescheduling as a risk mitigation measure

CONCLUSION AND RECOMMENDATION

Regarding overall project management, there is a need to continuously ensure that appropriate review has

been conducted on project details (ex. Project leader, budget estimate vs available resources

–

including HR

and Equipment, procurement plans for required resources, and overall schedule for developing the systems)

during the planning phase in order to factor in the economy, efficiency and effectiveness of the overall project.

Immediate follow up measures based on analysis of potential risk should be implemented when a change is

made, to increase effectiveness.

Assurance is also needed to confirm whether resources invested in the project are being managed

appropriately. Resource management should include both HR management (such as change of project

manager or team member) and asset management (capitalization), to increase the overall efficiency of the

project.

According to the result of analysis of documents and interviews and evaluation based on the international

standard, COBIT-5, it

is oted that GGGI s ERP de elop e t p oje t has ee

meeting the 3 Es

notwithstanding minor issues such as rescheduling and project manager change. It is expected that the ERP

system will contribute to enhance the 3 Es of the entire organization once finalized in June 2015.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

I. VfM Objectives, Scope, and Methodology

VfM Objectives, Scope & Methodology

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

I. VfM Objectives, Scope, and Methodology

VfM Objectives, Scope, and Methodology

Objective

We performed the procedures that were agreed with Global Green Growth Institute

GGGI

with regards to

Value fo Mo e VfM e aluatio to e ie the E o o ,

Efficiency, and Effectiveness of GGGI in regards to the agreed-upon sectors during the

period of two years (from January 1 2013 to December 31 2014), in accordance with

the terms of the contract between us dated February 06 2015.

As a result of the VfM evaluation, findings and recommendations have been made

which may be considered to improve on the efficient and effective green development

program performance in this area.

This VfM evaluation covered the period of two years from January 1, 2013 to

December 31, 2014. The VfM evaluation method included interviewing various

stakeholders, reviewing documents, and analysis of the financial data provided by

GGGI as considered necessary in the circumstances, to obtain reasonable assurance

with regards to:

Appropriateness and effectiveness of operating and procurement procedures;

Efficiency and effectiveness of internal management, institutional systems,

poli ies a d p o edu es i ega ds to deli e of GGGI s o je ti e;

E o o a d effi ie

of GGGI s esou es su h as staff,

equipment and facilities;

Effe ti e ess of GGGI s g ee de elop e t p og a s;

To fulfill the requirements stated in terms of reference, the VfM evaluation was

conducted with focus on the Economy, Efficiency, and Effectiveness of the following

management functions of GGGI

GGP&I: Mongolia program and Rwanda program

Strategy development

Finance,

Procurement

Human resource

IT & facilities

Business process

GGGI selected the Mongolia and Rwanda programs for review based on the following

criteria: 1) The programs are funded by core support, which is the support modality

used by Denmark; 2) One program conducted in a country geographically far apart

from GGGI headquarters, and one program conducted in a country situated closer to

Seoul; 3) The programs selected should have activities at country level on-going since

2012; 4) Country activities should have a certain volume; and 5) In-country staff are

available for meetings.

Relevant documents necessary to evaluate the sectors above were requested,

reviewed, and analyzed (refer to Appendix 1 for the list of documents requested and

reviewed). Interviews were conducted in addition to analysis of the documents; the

process owners and related employees were interviewed to obtain a better

u de sta di g of GGGI s p o edu es

(refer to Appendix 2 for list of GGGI interviewees).

Lastly, several counterparts in Mongolia were also interviewed in order to obtain the

comments, suggestions, and overall proje

t satisfa tio ith ega ds to GGGI s g ee

development program; due to the limited time in Mongolia (two days), it was not

possible to meet with all program counterparts.

Scope and General

Approach

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

I. VfM Objectives, Scope, and Methodology

Professional

Standard Used

The VfM Evaluation was conducted in accordance with ISSAI300 (Standards and

Guideli es fo Pe fo a e Auditi g ased o INTOSAI s Auditi g Sta da ds a d

Practical Experience), an audit standard issued by the International Organization of

Supreme Audit Institution (INTOSAI). The Performance Audit standard mainly focuses

on examining the economy, efficiency and effectiveness of the functions and activities

performance of the audited entity, but also includes the verification of the audited

e tit s o plia e ith

established legislation and regulations in its scope. The

standards require that auditors plan the VfM evaluation and report on the economy

and efficiency with which resources are acquired and used, and the effectiveness with

which the objectives are met.

The VfM Evaluation was conducted to achieve the objectives stated in the terms of

reference; the procedures taken to evaluate performance of each sector are described

below:

Re ie GGGI s p o edu es a d

manuals to determine whether GGGI is using the

appropriate operating and procurement procedures;

Perform tests to ascertain whether documented procedures are operating

effectively in practice;

Review the internal management, institutional systems, policies and

procedures to determine the efficiency and effectiveness of delivering the

o ga izatio s o je ti e;

Examine whether GGGI is acquiring the appropriate type, quality and amount

of resources (staff, equipment and facilities) at an appropriate cost (economy);

Examine whether GGGI is using the resources (staff, equipment and facilities)

optimally in delivering the appropriate quantity and quality of services in a

timely manner (efficiency);

Examine if the organization is avoiding issues overstaffing, idleness, duplication

of effort by employees and work that serves little or no purpose (efficiency);

E a i e GGGI s a hie e e ts effe ti e ess ;

Examine the systems and processes that were placed during 2014 to improve

the effi ie , effe ti e ess a d e o o

of GGGI s ope atio s; i ludi g,

Enterprise Resource Planning (ERP) system and new policies (human resources

and procurement); and Examine the above aspects with regards to the two

country programs funded by

GGGI s Co e Fu ds R a da a d Mo golia .

Examine the above aspects with regards to the two country programs funded

GGGI s Co e Fu ds R a da a d Mo golia .

Tasks in the Terms

of Reference

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

I. VfM Objectives, Scope, and Methodology

Evaluation

Methodology

Many publicly available external reports were reviewed. Most of the report covered

the periods of 2013 and early 2014; the latest report was the 'Appraisal of Danish core

contribution to Global Green Growth Institute 2014-2016', which was issued on April

28 2014, approximately one year ahead of the current External Value for Money

Evaluation project.

Both interviews with the Head of Department and review of documents have been

used as methods to conduct the evaluation. We only conducted interviews with

selected Head of Departments necessary to conduct the evaluation. Furthermore,

most of the interviewees have joined GGGI as of the second half of 2013. The purpose

of the interview was to obtain a thorough understanding of the GGGI processes and

procedures and GGGI's achievements in 2013 to 2014. Interviews also covered follow-

up questions on the Danish Report. Each interview was summarized and the contents

were confirmed by the interviewees.

Policies, procedures, and manuals provided by GGGI has been reviewed thoroughly.

Sample documents were requested and reviewed to be used as supporting evidence

for the Management level interviewee's assertions, and to obtain information from

the period before the interviewees joined GGGI.

Samples were selected from transactions conducted in the second half of 2014 in order

to check the improvements implemented by GGGI. After reviewing the transaction

samples and the relevant documents, a Findings Report was produced and confirmed

by GGGI. A simplified process map which depi

ts ou u de sta di g of GGGI s i te al

procedures (from reviewing the input & output document and conducting interview)

has been drafted and included in the Annex section 3.

Lastly, we included in our report the improvements implemented by GGGI in 2014 to

follow up on the deficiencies noted in the Danish Appraisal Report, even if the actual

impact of the revision showed after 2015. Doing so would impose additional weight

on the interview summary confirmed by the GGGI personnel, since we did not check

the quality of documents produced during 2015.

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II. Limitations

II.

Limitations

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

II. Limitations

Limitations

Basis of

information

The procedures performed are limited in nature and extend to those that GGGI

determined best fit

GGGI s

informational needs. As such, the report may not

necessarily disclose all significant matters about the review or reveal errors and

irregularities, if any, in the underlying information. These procedures do not constitute

an audit of the specific elements, accounts, or items, for which the objective would be

the expression of an audit opinion. Had we performed additional procedures, other

matters might have come to our attention that would have been reported to GGGI.

Furthermore, the sufficiency of the procedures performed is solely

GGGI s

responsibility. Consequently, we make no representation regarding the sufficiency of

the procedures described in the contract dated Feb 6 2015 for the purposes for which

this report has been requested and for any other purposes.

The information gathered or contained in the report was not independently verified;

accordingly, we do not express any opinions or make any representations concerning

the accuracy or completeness of the report. The data included in this report has been

obtained from the information provided to us during the VfM evaluation.

This report is intended solely for the use of GGGI and should not be used by those who

have not agreed to the procedures and taken responsibility for the sufficiency of the

procedures for their purposes. Additionally, our report reflects events and

circumstances as they currently exist. We have no obligation to update our report, or

to revise the information contained herein because of events and transactions

occurring subsequent to April 3, 2015.

The document forms and required information in many documents were

modified between year 2013 and 2014; thus, our analysis and review are limited

by this factor.

As most process owners joined GGGI in the second half of 2013, and some joined

GGGI in 2014, information regarding activities which took place before their GGGI

joining date are limited.

As the scope of the review was from the

pe iod

, GGGI s a ti ities

and the relevant documents in 2015 that were mentioned, commented, or stated

through the interview were not reviewed.

The VfM evaluation mainly focuses on reviewing the finance functions relevant to

t o of GGGI s

ou t p og a s,

and does not necessarily review all

of GGGI s

finance functions.

Government counterparty interviews regarding cooperation with GGGI in 2013

and 2014 for the Mongolia program were not fully available due to the

government reconstruction of Mongolia.

Reliance on

information

Restriction on

circulation

Other restriction

of the VfM

evaluation

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

III. GGGI’S Governance

III.

GGGI’s Gove a e

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

III. GGGI’S Governance

Institutional

Systems

The Global Green Growth Institute (GGGI) was first established in 2010 as a Korean

non-profit organization, and was converted into an international organization at the

Rio+20 United Nations Conference on Sustainable Development. Since its

establishment, GGGI has been dedicated to supporting the transition of developing

countries and emerging economies towards a green growth model by developing and

implementing strategies that simultaneously achieve poverty reduction, social

inclusion, environmental sustainability and economic growth. As of 2014, GGGI has

launched 35 projects in 22 countries.

GGGI originally operated based on three

pilla s

composed of Green Growth Planning

& Implementation, Research, and Public-Private Cooperation (PPC; PPC has been

replaced by Green Investment Service). In late 2013, the

th ee pilla s e e

converted

to work streams of GGP&I, PPC and Knowledge Development & Management (KDM).

The system was further converted into GGP&I and the Knowledge Solutions Division

(KSD)

follo i g Cou il s app o al i No e e

Currently GGGI supports

stakeholders through the two complementary and integrated workstreams of GGP&I

and KSD that deliver comprehensive products and services designed to assist in

developing, financing and mainstreaming green growth in national economic

development plans.

GGGI s o je ti es a d a ti ities that suppo t de elopi g

countries and emerging

economies are described in detail in the Establishment Agreement ratified by Member

ou t ies i

. GGGI s go e a e st u tu e, as outli ed

in the Agreement,

includes the Assembly, Council, Advisory Committee, and Secretariat. The Assembly,

composed of all GGGI members, meets every two years and advises on the overall

di e tio of GGGI a d e ie s the o ga izatio s p og ess i

eeti g its stated

objectives. The Assembly also elects Council members, appoints a Director-General,

a d e ie s the o ga izatio s p og ess i

eeti g its stated o je ti es. The Cou il

se es as the e e uti e o ga of GGGI a d thus app o es the o ga izatio s st ateg ,

budget, admission of new members, and criteria for green growth planning and

implementation programs. The Advisory Committee is a consultative body consisting

of leading, relevant experts and non-state actors. It is responsible for advising on the

strategy and activities of GGGI and serves as a Public-Private Cooperation forum for

green growth.

I No e e

, GGGI s Asse l a d Cou il app o ed the e ge

of the leadership of the Assembly and that of the Council into one, thus creating office

of the President of the Assembly and Chair of the Council. The Secretariat acts as the

chief operational organ of the Institute and is headed by the Director-General, who

represents GGGI externally and provides strategic leadership for the organization to

carry out its objectives.

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III. GGGI’S Governance

Staff

In-country staff have slightly increased since 2013.

as of December, 2013 as of December, 2014

Location

Korea

# of In country

staff

Mongolia

Rwanda

China

Colombia

Ethiopia

India

Indonesia

Mexico

Philippines

Denmark

South Africa

UAE

Vietnam

Grand Total

# Staff

101

# Staff

100

as of March, 2015

# Staff

103

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

III. GGGI’S Governance

The pie charts are prepared with Headcount data as of March 2015.

Staff vs Consultant

Ratio of Staffs by Working Location

40%

60%

31%

Staff

Consultant

69%

In Country

Consultant Part time vs Full time

Ratio of Consultants by Working Location

18%

Full time

Part time

82%

41%

59%

In Country

Consultant Contract Length

31%

Less than 6

Months

69%

More than 6

Months

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

III. GGGI’S Governance

Facilities

According to the Danish Appraisal Report issued in April 2014, GGGI had 3 satellite

offices during 2013-2014 in Abu Dhabi, London, and Copenhagen. In 2014, the GGGI

Council decided to close down two offices (London and Copenhagen) but to open a

European Focal Point with a focus on private sector engagement on green growth,

finance related issues, and donor relations. The pre-existing

GGGI Lo do Offi e s

research function was transferred to the Seoul HQ, and the European Focal Point will

concentrate on the private sector and donor relationships in order to make the

European presence cost effective.

With a

ta get ope i g date of Ma h

, the e Lo do offi e s fu tio

ill e

different from the function of the previous office. In order to reduce unnecessary costs,

GGGI s Eu opea P ese e ill

be located in a multi-used service office, and hire four

desks (3 staffs and one contractor) instead of using its former office with up to 18

people, which constitutes both staff and research consultants. The newly opened

European Focal Point resulted in

edu tio of GGGI s ea l ope atio al ost f o USD

550,000 to USD 120,000.

According to the GGGI Head of Corporate Services, GGGI initiated the Business Process

Management Program (BPM) with the approval from the DDG of GGGI on December

2013. The HR Management Process Map which was established in May 2014 will be

ready for use after ERP launch. Another business process map was put on hold due to

GGGI s p io it

with the ERP system; however it is expected to be completed by the

end of 2016. Once the BPM program is in place, it will be updated on annual basis to

check any omissions in the process steps and linkage among processes.

Business Process

Management

Program

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

IV.

Core Fund Project Management

1. Strategy and Planning

2. Mongolia Program

3. Rwanda Program

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IV. Core Fund Project Management

1. Strategy and Planning

Overview

First established in 2010 as a Korean non-profit organization, GGGI undertook an array

of institutional developmental processes and procedures in response to donor and

Council recommendations following the 2nd Joint Donor Review and other insight

documents.. Some of the improvements in the strategy and planning process made

du i g the e ie pe iod i ega d to GGGI s st ateg a d pla i g p o edu e a e as

follows:

2015-2020 Strategy:

GGGI's 2012-2014 Strategic Plan did not obtain approval

from the Council; GGGI explained that it was due to the fact that the plan was not

prepared in consultation with the member countries. However, GGGI has taken

various procedures such as obtaining internal and external consultations, meeting

with member countries, and attending country team meetings for its 2015-2020

Strategy Plan. In case of Mongolia, GGGI conducted an intensive consultation

session which included a 2-day multi-sector stakeholder workshop with 100

representatives from the public and private sectors and civil society.

Workstream integration:

The Appraisal report of GGGI issued by the Technical

Advisory Services of Ministry of Foreign Affairs of Denmark (Danish Appraisal

report) in April 2014 noted that there is weak integration among the three

workstreams (GGP&I, KDM, and PPC) in GGGI. One such example is the unclear

contribution to GGP&I by KDM and PPC. However, PPC had coordinated efforts in

Mongolia with the country team and the Ministry of Economic Development

(MEGD) since January 2014. For example, KDM supported the May study tour of

MEGD and National Statistics Office staff to Korea to explore green growth

indicator identification and definitions. Since 2013, KDM (then Research) has

suppo ted the Mo golia p og a s use of the Lo g-range

Alternative Energy

Planning (LEAP) software tool. In 2014, KDM and the country team also

coordinated

Mo golia s

partnership with the Green Technology Center of Korea

(GTC-K), which also had a strategic MoU with GGGI. This engagement resulted in

the design of a highly energy efficient kindergarten building and is an ongoing

component of GGGI work in Mongolia for both KS and GIS coordination. Also in

2014m GGGI issued a Planning Direction to develop the 2015-2016 work plans

and budgets which addressed such issues. Evidence of integration such as

cooperation or plans for cooperation among the workstreams is captured in the

QIR since 2014

Work Plan and Budget:

GGGI first implemented the Work Plan and Budget

template (WPB) in 2014, and moved from a one-year to a biennium work and

budget plan.

Result- ased

GGGI shifted to a ds esult- ased p og a

s in 2013, which

initially considers wanted outputs to plan the inputs necessary such as budget,

program, and ratio between in house staff and consultants.

Program Proposal:

In 2014, Preparation of Program Proposal was conducted by

each country team, and the budget and work plan was connected to a single

document. Previously, the plans were not connected in a single document, and

proposals and directions came from the upper management.

Program initiation:

Prior to 2014, GGGI did not have a systematic WPB review

process; it relied only on the division heads. The program manager submitted the

WPB template to the division heads, who submitted the templates to the Strategy,

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

Policy and Communication department (SPC). Ever since the Planning Direction

was issued in 2014, each program team fills out a WPB template; a challenge

session is also held to ensure that GGGI sets its strategy and budget appropriately.

Strategy and

Planning Process

In comparison to the previous strategy, which was outsourced to Dalberg Global

Development, the Strategic Plan 2015-2020 was developed in-house within GGGI in

2014.

The Strategic Plan 2015-2020 is the output of the strategic planning process that took

place over the course of 2014. This output is essentially the overarching strategy

do u e t that p o ides guida e to alig GGGI s ope atio s –

both programmatic and

non-programmatic

–

with the organizational vision and objectives over the next 6 years.

Prior to 2012, there was no organizational strategy. In 2012, the development of the

strategy was outsourced to an external firm. In 2014, GGGI developed the strategy in-

house in order to enhance relevance and buy-in. Strategic planning is a fundamental

process for any organization that is targeting effective delivery of organizational

objectives in the long run.

The effectiveness of the strategy and pla

i g p o ess is also e ide t i the Cou il s

approval of Strategic Plan, as well as the announcement of the Government of the

U ited Ki gdo s de isio to joi GGGI as a Co t i uti g e e at the No e e

2014 Council Session.

The Strategic Plan articulates the strategic priorities, delivery model, and the 2020

high-level targets, and forms the basis of the GGGI Results Framework 2015-2020 and

the Country Planning Framework (CPF) 2015-2019:

(i)

The Results Framework - indicating impact, outcomes and corporate outputs

aggregating program/project outputs - cascades down to program/project-level

logical frameworks and anchors the divisional targets and individual performance

o k ta gets th oughout the o ga izatio . GGGI s O ga izatio Deli e U it ill

monitor these targets and report against the Results Framework and project

Logical Frameworks. These targets are also linked to the work program of the

Human Resources Unit.

(ii) The Country Planning Framework is the guiding strategy for in-country delivery to

be d

i e

atio al p io ities alig ed ith GGGI s st ategi goals.

These two aspects are core to an integrated results-based management

framework/process to achieve an

o ga izatio s i te ded out o es i the lo g te .

The arrival of the current Director General in April 2014, and the submission of the

Work Program and Budget and the Strategic Plan at the GGGI Council meeting in

November 2014, necessitated efficiency in the strategic planning process to

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

ensure adequate consideration of diverse views in a relatively short period of time,

and the formulation of an overarching strategy that would be acknowledged by

Me e s fo GGGI s futu e.

The inputs of the planning process and the finalized strategy were as follows: the

process was initiated based on an approved concept note, a clear roadmap of the

i te ded o je ti es, a d a a al sis of GGGI s e isti g st u tu e, go e a e,

programs and service mix, staff, partnerships and resources. The resulting Strategic

Framework was further developed and shaped through numerous intensive internal

and external consultations: five country visits, surveys with GGGI donors, two informal

working group meetings, and two staff retreats. These consultative platforms ensured

representation from GGGI Member countries - both developed and developing

–

well as staff representation through the opportunity to submit opinions anonymously.

The strategic planning process also required a mechanism to operationalize the

objectives of the corporate strategy

–

the Work Program and Budget (WPB). The WPB

process in 2014 reflected efficiency by establishing a biennium timeframe as opposed

to the one-year timeframe of 2013. This reduces the administrative pressures on

project teams in conducting an annual budgeting exercise and widens the planning

horizon for development outcomes,

Considering

the eed to add ess do o de a ds a d GGGI s fi a ial situatio gi e

the time-specific circumstances, the strategic planning and budgeting process had to

be executed in an efficient manner and run in parallel, in view of the November

deadline: the Strategic Framework provided the basis of the Planning Directions which

was issued to the programmatic divisions for the preparation of the WPB. The WPB

process had to be results-focused: (i) budget ceilings and evaluation criteria aligned

with the Planning Directions were communicated to divisional heads; (ii) budgets

prepared by project teams and consolidated by each division; (iii) the submissions

were evaluated by both SPC and ODU and analysis provided to the Director General;

(iv) budget challenge sessions amongst divisional heads and the Director General; (v)

revision and or refinement of budgets; and (vi) analysis and preparation of the WPB

for the Council.

Conclusion

Overall, 2013 and 2014 was a transformative phase for GGGI and resulted in different

pla i g do u e t e ui e e ts du i g the t o ea pe iod. GGGI s St ategi Pla

2015-2020 and biennium WPB 2015-2016 reflect a shift in organizational thinking and

priorities, built on a common recognition amongst donors and in-country stakeholder

to demonstrate the case for green growth and deliver results on the ground.

A clear set of guiding principles, strategic priorities, and an integrated delivery model

emerged from an intensive strategic planning process through consultative platforms

and intensive discussions which included six country visits, two IWG meetings, an

informal Donor Consultative Group meeting, and the joint Audit and Finance Sub-

Committee and Project Sub-Committee, and staff surveys

–

in order to reflect lessons

learned and build upon bottom-up input.

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IV. Core Fund Project Management

The WPB is the operational tool for the Strategic Plan. The shift to a biennium

timeframe allows for the anchoring of project planning in a longer term horizon.

The launch of the Country Planning Framework, the derivative planning document

for in-country programming and any new project design, is aimed at delivering in-

ou t esults alig ed to atio al p io ities, GGGI s o po ate st ateg a d Results

Framework. Going forward, the draft GGGI Results Framework will require further

refinement of outcomes/outputs (based on the aggregation of biennium project-

level results), inclusion of baseline, indicators, and target. At the project level, all

project-level logical frameworks should be completed, finalized, and nested within

the corporate Results Framework. A methodology will have to be developed to

ensure nesting between project logical frameworks and corporate results framework

for meaningful aggregation of results

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IV. Core Fund Project Management

2. Mongolia Program

Overview of the

program

GGGI first engaged Mongolia at a time when the national economy seemed to be going

from strength to strength fueled by extractive industries and a booming southern

neighbor. At the same time, it was clear that business-as-usual approaches were

unsustainable and that climate change was affecting the landscape more rapidly in

Mongolia and Central Asia than nearly any other part of the world. Since the first

Consultative Workshop held in 2012, the Government of Mongolia (GoM) and GGGI

have worked collaboratively on specific priority sectors, including green growth policy

planning, energy, transport and construction. GGGI's programmatic engagement has

espo ded st ategi all

ith the GoM s e ol i g p io ities a d go e

e t

architecture.

Through effective and inclusive programming, GGGI has built the trust of a range of

government partners and stakeholders in the private sector, civil society, and

international development partners. Mongolia is a Member country of GGGI, and

GGGI has a growing presence in country, hosted by the Ministry of Environment, Green

Development and Tourism. Since deploying staff in Mongolia in September 2013,

GGGI s e gage e t a d olla o atio

ith

ministerial counterparts has expanded,

and now includes four ministries and two agencies as well as participation in important

coordinating bodies, such as the Business Council of Mongolia and the Green Building

Council of Mongolia.

During the government restructuring that began in October 2014, GGGI retained

important institutional and policy memory which enabled current government

counterparts to fast-track sustained green growth priorities, such as the National

Green Development Policy, and redefine new ones. In 2013-2014, through substantial

internal changes, GGGI and the GoM maintained a true-north focus that has created

and delivered green growth policies, methods, and projects -- key elements of the

evidence-based foundation of Mongolia's green growth transition.

Staffs:

Two GGGI staff members and one consultant are based in Mongolia as of March

2015 with plans to recruit additional staff and one consultant. Because GGGI does not

have legal status in Mongolia, issues such as absence of visa for employees and bank

accounts

a li it GGGI s a ti ities i Mo golia.

Since Mongolia became a member of

GGGI in June 20 2014, GGGI has been in discussion about a Host Country Agreement

(HCA) with the government. It is expected that the HCA will be finalized soon; however,

the reconstruction of the GoM from October 2014 extended into the 1

quarter of

2015 and may cause delay in the HCA process. Of the 22 countries in which GGGI

conducts programs, only two have granted HCA to GGGI. The challenge is a systemic

one that is being addressed by in-country teams, HQ units, and Council members alike.

The restructuring of the GoM in late 2014/early 2015 has served to delay the process

in Mongolia, although discussions are now back on track and under review at the

Ministry of Foreign Affairs.

Budget:

The total budget of the Mongolia program increased by USD 215,660 in 2014

from USD 681,091 in 2013 as the program extended to the general environmental

protection sector along with transportation and energy sector. In 2013, the Mongolia

p og a s

budget was composed mostly of salary expenses, with percentages as high

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

as 44%; however, outsourcing expenses increased from USD 28,440 in 2013 to USD

454,276 in 2014, which covered approximately 51% of the total annual budget.

Workstream integration:

The Appraisal Report by the Ministry of Foreign affairs of

Denmark drafted and submitted to the Danish Parliament in April 2014 pointed out

that the integration between the workstreams GGP&I, KDM, and PPC were limited.

However, according to GGGI, the Mongolia program has been well integrated with

other workstreams. For example, PPC has coordinated efforts in Mongolia with the

country team and the Ministry of Economic Development since Jan 2014. KDM

supported the May study tour of MEGD and National Statistics Office staff to Korea to

explore green growth indicator identification and definitions. Since 2013, KDM

supported the Mongolia prog

a s use of the Lo g-range

Alternative Energy Planning

(LEAP) software tool. In 2014, KDM and the country team also coordinated the

partnership with the Green Technology Center of Korea (GTC-K), with which GGGI has

a strategic MoU. This engagement resulted in the design of a highly energy efficient

kindergarten building and is an ongoing component in GGGI work in Mongolia for both

KS and GIS coordination. Since the 3rd quarter of 2013, the Mongolia country team

has been documenting the way in which the workstreams have cooperated or

integrated during the quarter; they have also recorded program opportunities or

requests for future support from the other work streams.

GGGI noted that the Mongolia country team is continuously well connected with the

workstreams. Currently, when the country team receives a request from the GoM for

development in the transportation sector, the work scope is sent to HQ to inquire

whether it is possible for GGGI to conduct the work with internal staff. Pending a

request from the country team, the former half-time country program manager and

now member of the KSD would consider provision of transportation sector-related

knowledge to the Mongolian program and government counterparts. In addition, KSD

has plans to support the country team in the facilitation of high-level knowledge

exchange with other government bodies in the upcoming GGGI-UNEP South-South

capacity building session. KSD also supports the country team in the screening of

program documents related to the water sector and in green indicator development

efforts. In case of integration with the Green Investment Services (GIS) department,

which took responsibility for PPC work, the country team has a person from GIS who

is dedicated to the Mongolia program for program design and launch. GIS has also

participated in liaising with the Ministry of Education and the Ministry of Industry and

Trade in Mongolia. Furthermore, GGGI prepared the preliminary design of GIS

programming for Mongolia in consultation with key stakeholders in 2014.

Team leader:

There have been changes in the Mongolia program team leadership

between 2013 and 2014. The former part time country program manager led the

Mongolian country program from Seoul on a fly-in, fly-out basis from 3

quarter 2013

through the 1

quarter of 2014 at which point he transitioned to KDM. The current

country representative

– GGGI s fi st i Mo golia, took up his full ti e duties i the

quarter of 2014. During the 2

and 3

quarters of 2014, the Regional Director held

that role and was acting country program manager until the recruitment for the new

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IV. Core Fund Project Management

role of country representative was finalized. According to GGGI, the reason for the

delay of Country Representative Recruitment was due to the

GoM s

austerity budget,

which froze new hires. When asked whether the Mongolia program was affected by

the absence of a program leader, GGGI answered that the program was slow-moving

at the time due to austerity budget restrictions and was therefore not affected. Despite

the absence of a program leader, the Mongolia program conducted a green building

technology assessment with the GTC-K, initiate negotiationd for HCA, and conduct a

Consultative Workshop for Aimag (provincial) Government representatives.

Program

Management

, GGGI s isk assess e t as o du ted the p og a

a age ased o his

knowledge of the program and included in the COP document. GGGI first conducted

the country program risk identification in 2014 to capture the risk status in the logical

framework that contains information such as descriptions of the activities and

outcomes linked with the related risk identification and risk management strategy.

According to the country team, program risk is assessed through desktop study, field

data collection, and identification of possible risks via QIR document while the HQ

provides recommendations and comments related to risk mitigation. As an example of

risk assessment, GGGI noted that some risk, such as political change, can be predicted

from the voting cycle. However, sudden risks such as abrupt government restructuring

cannot always be predicted. Such political risk is a risk faced by some of the GGGI

country teams and cannot always be predicted beforehand. However, in this case the

Mongolia country team has mitigated the risk by maintaining good relations with the

new government bodies. As a proof of sustained good relations, GGGI received a

request from the new Ministry of Transportation for green transportation

development in January 2015. The Mongolia Country Team is considering the design

of a transport sector activity in 2015. In addition to this proof is an unqualified

endorsements from senior level government officials also bear witness to effective and

sustained good relations, such as those coming from former Vice Minister of the

Environment and Green Development and now current Vice Minister for Education,

Cultu e a d S ie e, M . B. Tulga, ho otes: With its esou es fo Mo golia

programming, GGGI has provided timely and cost-effective assistance in close

collaboration with the government. Our collaboration has helped strengthen the

go e

e ts o

it e t to g ee de elop e t.

The Appraisal Report by the Ministry of Foreign Affairs of Denmark drafted in April

2014 stated that the country team felt detached from the HQ and that there was a lack

of communication, strategic guidance, professional and administrative support. There

has been improvement in project management since the Regional Director joined

GGGI in the end of 2013, as a result of daily communications with the country team,

weekly country team meetings, and a portfolio meeting every month. Finally, GGGI

added that the Country Representative can always communicate with the HQ on at

least a weekly basis through email, phone, or Skype.

Overall, the Mongolia program management by HQ has been well established to

i ease effi ie

a d effe ti e ess of the ou t tea s a ti ities.

Over the course

of the two years that are subject to this VfM audit, the management of the Mongolian

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

country program has shifted from Seoul to Mongolia, with a sustained and growing

reputation of impact, relevance, and collaboration. However, there are still remaining

factors to be improved to enhance effective work between the country teams and the

HQ.

Urgent request for procurement approval at the end of the year: During the review of

procurement approval emails for the Mongolia program, it was noted that an urgent

approval request was sent to the procurement department on December 12, 2014,

requesting approval of 3 pending procurement request. The procurement request was

related to 52 Individual Consultant procurement contracts (34 consultants for the

Green Development Roadmap Project and 18 consultants for the Green Indicators

Development Project) with a total contract value of approximately USD 17,900 for the

green indicator development project and the green development roadmap project.

The u ge

of the e uest as ased o the GoM s eed to ha e i sights a d

feedback into conferences and decision-making related to the National

GreenDevelopment Policy by the end of December 2014.While the start date of all the

contracts are December 15, 2014, one of the required documents to finalize the

contracts, consultant CVs, were only fully submitted to the procurement department

on December 31 2014. Furthermore, the review of the procurement list for the

Mongolia program showed that GGGI obtained the receipt of the majority of signed

contracts from the consultants on December 30 2014 (Please refer to Procurement

of 52 Individual consultants procurement contracts [34 consultants for the Green

Development Roadmap Project and 18 consultants for the Green Indicators

Development Project]

the Procurement section). In this case, procurement was

related to numerous contract approvals, which the procurement unit had to approve

without sufficient time to thoroughly review the details of the procurement. Whether

this procurement was economical and or efficient or whether there were other options

that GGGI could have taken is not shown in this request. In order for GGGI to ensure

that 3Es are followed in the procurement process, procurement approval request

should not be sent as an urgent matter, in order to give the procurement unit time to

review the appropriateness of the procured service or product. The Country team at

all times should ensure that the procurement schedule is planned in advance and

consider whether it fits the 3E.

Budget

Management

The Mongolia program had a budget reduction during the 4

quarter from

USD

713,527 to USD 163,013.

The reason for changes in the total 4Q budget amount was not documented in the QIR.

However, according to GGGI, in Q4 of 2013, GGGI Council passed the 2014 budget, but

i sisted o a % edu tio a oss the oa d, hi h e a e k o as the Dela ed

budget. These figures were communicated to GGP&I staff by the then Deputy Director

General who was also the division head of GGP&I. In Q2 of 2014 when the new DG

arrived, the first round of austerity budgets were announced, along with hiring freezes

which suspended, among others, the first recruitment effort for the country

representative in Mongolia. Regional directors were instructed by the DDG and GGP&I

to manage budgets within their portfolios, rather than at a project level. ODU

continued to issue QIRs with the original budget allocations, and country teams were

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

instructed by the DDG and GGP&I to live within austerity budgets even as teams

reported to ODU with the original budget allocations. In September, GGP&I teams

learned that austerity budgets were extended for the remainder of 2014 even though

they had been told that austerity limits would be lifted for Q4 of 2014 and program

ould etu to thei o igi al dela ed udget allo atio s. Agai , ODU issued QIRs

with the delayed budget sums, even though the austerity budgets remained in place

until December 2014. With specific regards to the North and Central Asia region, the

regional director kept her teams informed of the changes throughout, during the

weekly regional meetings, and regular communications and interactions with each

team. During most of the austerity period, she was also acting country program

manager for Mongolia, and was, therefore, highly informed of budget limits and

program targets..

Due to the austerity budgets imposed in April 2014, the Mongolia country team

suspended the transportation sector activities and, at the request of the GoM focused

on energy sector efforts.

QIR:

In 2013, the DDG for GGP&I created the Project Monitoring Team to collect

information related to GGP&I work stream projects. QIRs were developed as a

management tool to allow the DDG to have an

o e all ie of p oje ts p og ess

toward the achievement of the planned results as well as a general understating of the

disbursement level over the year. Based on the information provided in the QIRs, the

DDG for GGP&I was able to report on project results to GGGI executives and to the

Program Sub-Committee.

According to GGGI, QIRs were never meant to serve as detailed financial reports for

external use, but merely to allow the GGP&I DDG to have a general understating of the

disbursement trend. At the end of 2013, the Organization and Delivery Unit was

created within the M&A

i isio to o ito all GGGI s p oje ts, ot o l GGP&I o es.

In Q1 2014, the role of QIRs was revised and the financial report section was

definitively discontinued. Since then information about budget execution was

provided only by the Finance Unit via monthly project dashboards. Since Q1 2014 QIRs

have been collected by ODU with the primary objective to inform GGGI executives and

the Cou il s su

-committees

a out GGGI p oje ts po

tfolio performance. We were

a le to e ie GGGI s a ti ities, udget, a d dis u se e t i ega ds to the QIR a d

QPR. From our review of the QIR it was noted that the QIR does not document detailed

information with regards to budget re-allocation and high variance between the

budget amount and the actual disbursement.

Re-allocation of budget with no explanation in the QIR

In the 2

quarter 2013, the QIR showed changes in the budget

i Se to al A tio Pla s

for Green de

elop e t of Mo golia a d

d Phase of T a spo t Se to P og a as

shown in the below table:

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

(Currency: USD)

Reporting Quarter

Category

Sectoral Action Plans

for Green

Development of

Mongolia

2nd Phase of

Transport Sector

Program

150,000

300,000

150,000

100,000

200,000

While the total amount of budget did not change, no explanations regarding the

reason for budget re-allocation were provided in the QIR.

According to GGGI, budget shift can occur during the year from one category to

another without changes in the total budget amount. Budget re-allocations were

considered under the full responsibility of project managers and the ADG following

their internal decisions. However, during the period of budget austerity, budgets were

allocated on a regional basis from the ADG with Regional Directors finalizing the

allocations across their regions. While Regional directors were requested to revise and

comment on the QIRs for quality assurance and to confirm information correctness

they were not requested to explain why there were changes in budget allocation.

Documentation of the details of the budget re-allocation such as purpose, cause, and

effect can help GGGI monitor and compare how the increase/decrease in input can

affect the efficiency and effectiveness of the program. Tailor-made reports will be

ge e ated th ough the GGGI s ERP P oje t Module s heduled to e fu tio al e d

June 2015) by taking information from different Modules including procurement,

finance, and grant module.

2. High variance between budget and actual disbursement during 2013 and 2014

GGGI implemented the Budget vs Actual Report only about a year ago. In the absence

of an ERP system, ODU had to manually collect information from the project teams

and Finance Unit on 40+ projects with the sole objective to facilitate internal

communication flow and track financial performance at the projects portfolio level

(QPR).

According to GGGI, since ODU was not the primary source of financial data, it was not

in a position to spot and correct errors unless there were clearly evident abnormalities.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

The review of 2013 QIRs and Budget vs Actual Report shows high variance between

the planned budget amount and the actual disbursement amount as below:

2013 Budget VS Actual Disbursement on QIRs

2013 Budget - Actual, Disbursement Rate

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

Budget

Actual

Variance

$96,575

$68,071

$68,594

$200,680

70%

$158,948

26%

$163,013

$154,191

126%

$262,555

95%

140%

120%

100%

80%

60%

40%

20%

The above graph shows the Mongolia Program recorded high variance between budget

and actual in 2013 2Q and 3Q disbursement. Due to the absence of detailed

disbursement data for 2013, identification of which planned expenses were not

disbursed or over disbursed was limited.

2014 Budget VS Actual Disbursement on the variance report

2014 Budget - Actual, Disbursement Rate

400000

80.15%

38.11%

200000

$152,636

100000

$107,069

$85,817

$58,165

15.02%

$107,801

$40,245

20.00%

0.00%

2014 Q1

REVISED

2014 Q2

DISBURSED

2014 Q3

2014 Q4

29.20%

40.00%

$369,187

100.00%

80.00%

60.00%

300000

$267,859

DISBURSEMENT RATE

The above graph shows the Mongolia program recorded high variances between the

budget and actual disbursement in 2Q, 3Q, and 4Q of 2014. The issue in year 2014 was

that the actual disbursement was significantly lower than the planned budget. The

analysis of the variance report showed that the Mongolia program disbursed less than

50% of its planned budget in all categories as shown below; in some cases,

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

the team even disbursed 0% of the budget.

However according to GGGI, the actual disbursement was in compliance with the

austerity budget totals set by the Accounting and Finance Sub-Committee of the GGGI

Council, and the Mongolia country team disbursed austerity allocations in a way that

still met revised targets and government expectations.

2014 budget variance from variance report

Category

Salary and Wages

Supply expenses

Travel expenses

Conference

expenses

Outsourcing cost

Freight expenses

Communication

expenses

Overhead

Budget

(Annual)

221,775.48

3,500.00

62,500.00

97,000.00

454,276.00

2,000.04

18,200.00

37,500.00

Actual

(YTD)

109,126.74

1,290.45

20,402.43

28,768.37

104,009.92

91.73

164.86

0.00

Variance

amount

(YTD)

-112,648.74

-2,209.55

-42,097.57

-68,231.63

-350,266.08

-1,908.31

-18,035.14

-37,500.00

(Currency: USD)

Disbursement

rate

49%

37%

33%

30%

23%

High variances between budget and actual may indicate that 1) The budget planning

was not conducted with full consideration of the program process, or that 2) The

program has not performed efficiently as initially planned, or that 3) There has been

an unexpected event. During the interview the Regional Director indicated that she

communicates with the country team when variances between the budget and actual

disbursement are present. However, explanations for variance were not documented

on the variance report or the QIR. Although GGGI stated that the DDG, Head of GGP&I

Division, instructed regional directors of austerity allotments, the country team and

GGGI should record and document the analyzed cause of the variance to help the

country programs plan appropriate budget amounts in the future.

Procurement

Request

In regard to the Mongolia program, we reviewed two procurements related to

procuring consultants and noted the followings:

1. Evaluation method for work performed by consultant

In October 2014, the current country team leader first joined GGGI as a consultant for

the country representative position; his status changed to staff member in March 2015.

According to GGGI regulation, consultants procurement by GGGI are required to

submit a progress report for hours worked (timesheet) and work performed in order

to receive payments from GGGI.

1. Information such as date, number of days, number of hours, start time, finish time,

duty station, and a short brief of activities performed can be submitted in the

timesheet. GGGI determines and approves the hours worked by consultants only

through the monthly timesheet submitted by the consultant at the end on the month.

Because the hours of work and activities are used for the basis of consultant payment,

GGGI elies o the o sulta t s o

epo t.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

On the timesheet submitted by the then-consultant on December 2014, the time

submitted included time spent on lunch or dinner. For example, the timesheet

indicates that the consultant worked for 12 hours, from 9:00 AM to 21:00 PM on

December 11th, 2014. However, although it is reasonable to assume that time was

spent on lunch and dinner breaks, such meal time seem to be included along with the

hours worked. Similar cases (inclusion of lunch or dinner hours in the number of hours

worked) can be found throughout

the o sulta t s su itted ti esheets f o

November to January. Due to the absence of an evaluation method for the working

hours in GGGI, such hours were approved based on weekly discussions with the

Regional Director, and the deliverables and actions were also discussed and agreed to.

Invoices were approved if it abided the agreed upon requirements.

According to GGGI, HR instructed the then-consultant to complete his timesheet in a

manner consistent with staff, rather than as a procured consultant. However, because

the consultant was initially procured as a consultant, GGGI should follow the

procurement process instead of utilizing both the procurement and the HR (staff

recruitment) processes. It should be noted that if regulations can be bypassed with

e eptio s, effe ti e ess of GGGI s egulatio s a d i te al o t ol a de ease as

the number of exceptions increase.

2. Procurement request details

The rationale for forming 52 consultant procurement contracts (34 consultants for the

Green Development Roadmap Project and 18 consultants for the Green Indicators

Development Project) with individuals related to the Government of Mongolia is not

described on the procurement request document - 82.5% (Number confirmed by the

Mongolia Country Representative) of the 52 procurements relate to government

personnel.

According to GGGI, these individual consultants were procured based on relevant skills

and experience required for the task; the 52 consulting contracts are related to the

Green Development Roadmap Project which included the following:

- Written contributions to the review and/or development of green development

implementation plans (i.e. roadmap)

- Participation in working group sessions

GGGI added that the services provided will make up a critical component of the

Government of Mongolia

s a ilit to i ple e t its Natio al G ee De elop e t Poli .

These services will also assist in the formulation and multi-stakeholder commitment

to GGGI s

-2020 strategic country framework for Mongolia. Furthermore, GGGI

also emphasized

Vi e Mi iste Tulga s lette to GGGI

(5 May 2015) which confirms the

benefit and impact of this intervention by noting:

The o sultati e o kshops that

took place in 2013 and 2014, particularly those in December 2014 in Ulaanbaatar,

helped to e su e oad i put i to the go e

e t s g ee g o th pla i g a d egi

the p o ess of appl i g atio al st ateg to the eeds of lo al o

u ities.

Without the rationale, it is difficult to determine whether the procurement is

e o o i al, effi ie t, o effe ti e fo GGGI s a ti it pu poses. To dete i e

whether GGGI is utilizing its resources in accordance to the 3Es, GGGI should

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

document the rationale for procurement on the procurement request form in order

for any reviewers to monitor the appropriateness of the procurement. In addition,

procuring services from government-related individuals must document in detail

purpose, outputs of the service, and how GGGI benefited from the outputs for the

transparency purpose of the interaction.

Issues in the Progress report by the consultant

Although GGGI has flexible working hours, it is important to monitor the real working

hours put in by the consultant if the consultant is paid in a lump sum each month.

Furthermore, the consultant works in a different country and often works from a

remote location, making it difficult to supervise the working hours.

Findings from the sample of consultant’s

p og ess epo t

The consultant prepared a Monthly Timesheet and Activities Log from October 11,

2014 which was before the contract start date of October 13, 2014. Expense

reimbursement of USD 693.03 was also requested prior to the contract start date

based on the timesheet. Furthermore, the consultant treated Saturday and Sunday as

working days in December 2014 and January 2015, and billed based on these

timesheets.

(Currency: USD)

Month

GGGI Paid

KPMG's

assertion

Month

GGGI Paid

October

2,844.20 = 5day * 568.84

2,275.36 =

4day

* 568.84

The contract start date was Oct 13,

Not Oct 12

December

= 22day *

13,083.40

594.70

12day

7,136.40

594.70

3 Annual leaves has been provided

to the consultant in monetary

form (component 2 of the salary

according to Procurement No.PAI-

2014-358); as a consultant he

should ot e appli a le to GGGI s

benefits.

Also, overtime work should not be

included in the working hours.

Included 3 Saturday and 1 Sundays

as working days; weekends should

not be included in the calculation

February, 2015

November

13,083.40 = 20day * 654.17

Agreed

January, 2015

13,083.42 = 21day * 623.02

10,591.34 =

17day

* 623.02

Consultant

Management

KPMG's

assertion

Included 1 Saturday and 4 Sundays

as working days; weekends should

not be included in the calculation

Month

GGGI Paid

KPMG's

assertion

One of two pages is missing so

could not check the amount

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

Counter-party

Interview

Prior to the Mongolia trip, GGGI organized the meetings and interviewees to be met

in Ulaanbaatar for VfM evaluation; however, some of the counterparts who

cooperated with GGGI on green development program in 2013 and 2014 could not be

interviewed due to the restructuring of the Mongolia government.

Three of the seven public sector representatives (i.e. Enkhtaivan (Energy), Tumenjargal

(Energy), Batbold (Transportation), and Mr. Gerel-Od (Climate Change) had been

involved in the GGGI program during 2013-2014. In addition, one of the five

representatives of Clean Energy LLC (Sukhbaatar (Energy)) had been involved in GGGI

programming during 2013-2014. The new ministry personnel currently cooperating

with GGGI were interviewed instead for the public sector. The people on the list below

e e i te ie ed to e aluate the effe ti e ess of GGGI s g ee de elop e t

programs in Mongolia:

Mongolia program

–

Public Sector

Department/office

Ministry of Environment,

Green Development and

Tourism

Department of Strategic

Policy and Planning,

Ministry of Energy

Strategic Policy and Planning

Department, Ministry of

Roads and Transportation

Ministry of Roads and

Transportation

International Relations

Division, Ministry of

Environment, Green

Development and Tourism

Name

Ms. Saranchimeg Batsukh

Mr. Enkhtaivan G.

Mr. Tumenjargal M.

Mr.Batbold S.

Mr. Batbayar Ch.

Dr. Jae-Hong Kang

Title

Member of UB City Council

and Advisor to the Minister

of Environment

Deputy-Director General

Senior Officer

Officer

NIPA Advisor

Officer, International

Cooperation Division

(Formerly Officer in Climate

Change Coordination

Office )

Mr. Gerelt-Od Ts.

Mongolia Program - Private Sector

Department/office

Clean energy

(One example of a private

sector entity with which

GGGI has had programming)

Name

Mr. Sukhbaatar Ts.

Mr. Jamiyandorj P.

Mr. Amar

Mr. Enkhsaikhan

Ms. Dashmaa D.

Title

CEO

Chief Technical Officer

HSE Officer

Senior Electrical Engineer

Admin and Document

Control Officer

According to the interviews, the majority of the counterparts first encountered GGGI

through consultative workshops or group activities held by GGGI, such as the first

aimag and multi stakeholder consultations on green development organized and by

GGGI and MEGDT. GGGI worked together with the public sector to identify the key

objectives of green development, and issued a report on green public transportation.

In addition, GGGI also supported the Government of Mongolia in the development of

the Mongolia National Green Development Policy. Clean Energy LLC, the private sector

counterpart, indicated that they were able to gain valuable information through the

GGGI workshops.

As e ide e of GGGI s suppo t to the go e

e t i de elopi g its

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

National Green Development Policy, the analysis of long-term energy scenarios are

di e tl efle ted i the NGDP s ta get of a hie i g % e e a le

energy generation

by 2030.

The counterparts in the public sector felt that GGGI had valuable information,

expertise, and knowledge on green growth development, but indicated the need for

specific information on green growth in Mongolia. Clean Energy commented that

GGGI s p og a is fo oth pu li a d p i ate se to

s and that one of the

accomplishments of GGGI is that GGGI was able to break barriers between ministries

and GGGI. Lastly, Clean Energy added GGGI enabled them to cooperate with

Mongolia

Ministry of Economic Development.

The o e all le el of satisfa tio fo GGGI s g ee de elop e t p og a p o ided to

both public and private sector is high. The Department of Strategic Policy and Planning

of Mi ist of E e g oted that GGGI s k o ledge a d o

it e t to Mo golia s

green development is acknowledged. Both the public and private sector interviewees

commented on future plans to cooperate with GGGI for green development of

Mongolia.

Below are suggestions provided to GGGI by the counterparts in Mongolia:

- Provide GGGI reports in Mongolian language in addition to the English version

- Organize capacity building sessions and cooperate in the implementation phase of

the green development

- One of the counterparts interviewed commented that although GGGI provided

strong study and research, they are hoping for tangible, real-life results which can

be used by the end user. The counterpart also commented that GGGI's long term

support is needed for Project Pipelining and technical support.

Provide specific design of the development programs and provide more hands-on

support in the implementation phase. In addition, Department of Strategic Policy

and Planning of Ministry of Energy suggested that a Mongolian personnel be hired

to o k ith GGGI to o tai GGGI s k o ledge a d e pe tise o the jo .

Recommendations

The followings are recommendations for improvements and changes that can be made

by GGGI to enhance its 3Es in its activities:

Program Management

Urgent request for procurement approval at the end of the year

All of the 52 transactions (34 for the Green Development Roadmap Project and 18 for

the Green Indicators Development Project) related to this urgent request violated the

proper procurement sequence; the final approval by the Head of Procurement was

given right before the ending date of the contract. Causal analysis showed that the

issue was due to the Mongolia

P og a Cou t Rep ese tati e s poo p epa atio of

the Procurement Request; the Head of Procurement attempted to ensure that all

required request documents were of proper quality.

Whether this procurement was economical and or efficient or whether there were

other options that GGGI could have taken were not shown in this request. In order for

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

GGGI to ensure that 3Es are followed in the procurement process, procurement

approval request should not be sent as an urgent matter, and time should be given to

the procurement unit to review the appropriateness of the procured service or

product. Country teams at all times should ensure that the procurement schedule is

planned in advance and consider whether it fits the 3E.

Budget Management

Re-allocation of budget with no explanation in the QIR and High variance between

budget and actual disbursement during 2013 and 2014

Documentation details of the budget re-allocation such as purpose, cause, and effect

can help GGGI monitor and compare how the increase/decrease in input can affect the

efficiency and effectiveness of the program.

GGGI s ERP P oje t Module that ill

functional by end of May 2015, is built to factor in efficiency and effectiveness in

project management. GGGI will no longer uses QIRs, as such processes would be

recorded through the ERP so that the program performance can be monitored and

evaluated along with the total input by the organization to determine whether 3Es are

being followed throughout the project.

Procurement Request

Absent an evaluation method for work performed by consultants based on the

timesheet and contract reviewed during the VfM evaluation, a need for GGGI to

implement a clear and objective consultant management system was identified. The

Mongolian program consultant contract should have included details such as whether

the contract is time-based or output-based or if there are any benefits to be provided

by GGGI. In addition, it is unclear as to whether the working hours submitted in

timesheets were actually used for GGGI related work. The direct supervisor should

have monitored and confirmed the

o sulta t s effi ie t a d effe ti e use of ti e a d

contribution throughout the project.

In addition, GGGI should follow the procurement process instead of utilizing both the

procurement and the HR (staff recruitment) processes. It should be noted that if

egulatio s a e passed ith e eptio s, effe ti e ess of GGGI s egulatio s a d

internal control can decrease as the number of exceptions increase.

Procurement request details

To determine whether GGGI is utilizing its resources in accordance to the 3Es, GGGI

should document the rationale for procurement on the procurement request form in

order for any reviewers to monitor the appropriateness of the procurement. In

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

addition, procuring services from government-related individuals must document in

detail the purpose and outputs of the service, and how GGGI benefited from the

outputs for the transparency purpose of the interaction.

In addition, GGGI should acknowledge the risk associated with hiring 43 out of 52

consultants (34 consultants for the Green Development Roadmap Project and 18

consultants for the Green Indicators Development Project) related to the government

during the time of government restructuring and that this lacks the rationale in the

procurement request. Engaging individual consultants who undertake some form of

government service should clearly demonstrate the absence of overlap in the

consulting service and the individual's other duties.

Consultant Management

Since the person who has the responsibility and authority to confirm a

o sulta t s

working hours is the Country Representative (CR), the CR should refrain from granting

preferential treatment to consultants without consulting with HR and Procurement

first. Furthermore, the CR or the Regional Director should openly express their opinion

on the timesheets to HR and Procurement if the format or the contents seem to be of

insufficient quality.

Conclusions

In general, the Mongolia Project achieved its main objectives. Despite the austerity

budget which brought significant internal limitations, the Mongolia program has

managed to support ratification of National Green Development Policy (NGDP) in

Mongolia. The instability of the Government of Mongolia in 2014, which resulted in

the replacement of the entire government, came to GGGI as both risk and opportunity.

Although the restructuring of the Government of Mongolia poses certain limitations

in the Mongolia country project, relationships are now re-established and productive,

as confirmed in statements by public sector counterparts. The country team also

extended partnerships into the private sector and civil society.

However, despite these achievements, definite room for improvements were

identified during the VfM procedure. As scope of the Mongolia program expands and

cooperation with the Government of Mongolia increases, it is crucial that GGGI

maintain an accurate and thorough internal documentation that depicts the activities

of the country team in detail in the ERP Project Module (to be launched by end of May

2015) including changes in the budget (whether the change is a mere re-allocation or

modification in the total budget amount) in order to achieve effective budget

management.

Furthermore, the most significant of the deficiencies noted is the recruitment of the

Country Representative which occurred during the second half of 2014. Review of the

consultant progress report suggested that consultant management was not being

performed appropriately, which damages both effectiveness and efficiency.

Furthermore, too much preferential treatment was provided to the consultant

without discussing with HR and Procurement in advance. Lastly, although payments

were provided to participants of GGGI workshops - of which 83% were government

related - there were no clear explanations as to why the payments were provided.

Therefore, it is hard to

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

conclude that the Mongolia project management was performed in an effective and

efficient manner.

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IV. Core Fund Project Management

3. Rwanda Program

Overview of

Program

The primary objective of the Rwanda program is to directly support the

implementation of the Second Economic Development and Poverty Reduction

Strategy (EDPRS2) 2013-2018 and the National Strategy for Green Growth and Climate

Resilience of Rwanda. The project started on September 2012, and consists of two

different phases: Resource Efficient and Affordable Housing and National Urban Policy

for Green Growth as Phase 1, and Develop Rwandan Secondary Cities as Model Green

Cities with Green Economic Opportunities as Phase 2. The project scoping (for phase

1) was conducted from January to August of 2012, and actual implementation of Phase

1 started on September 2012. The MOU was signed between GGGI, the Ministry of

Infrastructure, and the Rwanda Housing Authority on September 2012. Due to

completion of Phase 1, GGGI was able to provide strategic and technical advice to the

Government of Rwanda (GoR) through the National Territorial Vision, and also provide

the Strategy for Green Growth towards 2030. In addition, GGGI provided analysis on

the Local Construction Material for Resource Efficient & Affordable Housing in Rwanda,

and finally, provided the Policy and Legal Framework for Energy Efficient Housing in

Rwanda. GGGI initiated Phase 2 in January 2014 to develop six secondary cities as

model green cities with green economic opportunities, as inscribed in EDPRS2.

The work activities of the Program, discussed and confirmed by the GoR and GGGI are

as follows:

- Component I: Conduct preliminary analysis on the potential for green growth of

Kigali and secondary cities;

Co po e t II: De elop a G ee Cit f a e o k a d guideli e fitti g i to

the

Rwandan secondary city context;

- Component III: Develop a National Roadmap on secondary city development; and

Component IV: Enhance capacity of government employees and GGGI staffs by co-

developing appropriate tools

In April 2015,

R a da s Ca i et app o ed GGGI s Esta lish e t Ag

eement to show

its commitment to cooperating with GGGI to achieve the development of secondary

cities as green cities with green economic opportunities.

The GoR has decided to strengthen six secondary cities as centers of growth through

EDPRS 2. This is to transform the economic geography of Rwanda by facilitating and

managing urbanization and promoting secondary cities as poles of economic growth.

At the sa e ti e, EDPRS i o po ates a g ee e o o

app

oach to economic

transformation with two interventions related to the promotion of green urbanization

as well as green innovation in the industrial and private sectors.

In line with

GGGI s alue p opositio a d st ateg to o e lose to i ple e tatio ,

GGGI as part of its 2015 and 2016 work is currently in discussion with the GoR to

develop the institutional structures and capacity needed to develop a Green City

Investment Strategy and pipeline of bankable projects.

Program team:

The governance aspect of the project has been stable as the team

leader has not changed since the 1

quarter of 2013. The Regional Director became

involved in the program at the start of the 4

quarter of 2013. In January 2015, GGGI

appointed a Country Portfolio Director who manages 5 other countries in addition to

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

Rwanda. The Country Portfolio Director will relocate to HQ on June 2015. The Rwanda

Country Representative (CR) is based in Kigali.

Workstream integration:

The 2014 Danish Appraisal Report pointed out that GGGI

lacked integration amongst the three workstreams. GGGI noted that during the period

of the Appraisal, the role of KDM and PPC was to conduct research and studies

relevant to green growth at the HQ and did not integrate with country team in regard

to the country program.

Improvements in integration of the workstreams have been made now; country

team members are able to cooperate among workstreams based on their needs. For

example, KSD obtains data and information from the country teams to establish the

strategy and plans. The data is then sent to the country team, where the data is

utilized to work with the government.

Furthermore, PPC and KDM were merged in Q4 2014 to form the Knowledge

Solutions Division which has Knowledge Solutions (KS) and Green Investment

Services (GIS). GIS has replaced PPC.

As for integration with PPC, PPC plans to establish an investment strategy after the

completion of the roadmap according to the 2015 Rwanda Program strategy, which

documents how the investment plan should be made during each action phase.

Private sector integration:

Another issue noted in the Danish Report was the

insufficient level of integration with the Private Sector. According to GGGI, the

Danish report was issued when the Rwanda Program was in a phase where

government related personnel were frequently met to conduct research on the basic

status a d to o tai p oje t eeds fo uildi g the p oje t p og a . Although

private sector entities, such as the Rwanda Energy Group, were contacted, formal

relationship were still at the exploratory stage.

Since the issue of

e e ship as GGGI s top p io it , a ti ities e e fo used o

the GoR rather than the private sector; the private sector played minimal role at this

stage of engagement with the government.

GGGI noted that part of the plan for drafting the roadmap in 2015 is to include the

comments from the private sector as well as the public sector. On September 02-03,

2014, the Rwanda project conducted a large-scale joint consultation with PPC (now

KSD) in Kigali. The joint team organized 13 meetings with public and private sector

entities, international and national stakeholders, including Crystal Ventures, Private

Sector Federation of Rwanda, Rwanda Development Bank.

Program

Management

The 2014 Danish Appraisal Report drafted in April 2014 stated that the country team

felt detached from HQ and that there was a lack of communication, strategic

guidance, professional and administrative support. According to the Country

Portfolio Director, detailed guidelines form the HQ were lacking in 2013 and 2014.

Many improvements have been made to date and the Director General holds

conference calls on a regular basis and moving forward the plan is for the country

team leader to visit Rwanda each month to meet related personnel.

During the VfM evaluation, the following findings were noted with respect to the

program management of the Rwanda program:

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

Delay in Project schedule and deliverables

The Rwanda program consists of two phases, and each phase consists of scope and

implementation steps. The scope step of Phase 1 was performed in 2012, and the

implementation step commenced in September 2012. During the QIR review, it was

noted that both the closing date of the phase 1 implementation step and the

launching date as well as Phase 2 scoping step had been delayed multiple times.

Specifically, the closing date of phase 1, recorded as March 2013 on the 2013 1

quarter QIR, had been changed to April 2013 on the 2

quarter, and changed once

again to December 2013 on the 3

quarter.

In the case of Phase 2, the original closing date of December 2014 was extended to

March 2015 on the 2013 4

quarter QIR. Furthermore, review of QIRs indicated

multiple delays in publication issuance and consultant reports. For instance,

although the National Territorial Vision and Strategy for Green Growth towards 2030

was originally planned to be delivered in August 2013, the actual delivery was made

in December 2013. The reason for the delay and extension of the deadline was not

stated in the QIR reports.

Please refer to the table below for the details of the delayed schedule.

Program phase

Phase 1

Phase 2

(Original closing date)

Actual closing date

(Mar 2013)

(Apr 2013)

Dec 2013

(Dec 2014)

Mar 2015

Original delivery

date

Aug 2013

Extended

9 months

3 months

Consulting

firm

KICT

Deliverable

Local Construction Material

for Energy Efficient &

Affordable Housing in Rwanda

National Territorial Vision and

Strategy for Green Growth

towards 2030

Institutional and Legal

Framework for Energy

Efficient and Affordable

Housing in Rwanda

Energy Status of Rwanda and

the Strategy for Green Growth

Preliminary analysis on the

potential for green growth of

Kigali and secondary cities

Green city framework and

guideline

Revised delivery

date

Dec 2013

KRIHS

Aug 2013

Dec 2013

AURI

AJOU

UNIVERSITY

GGGI

Aug 2013

Dec 2013

Aug 2014

Dec 2013

Aug 2014

March 2014-

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

It was not evident in the QIRs whether the delays in the project phase and deliverables

ee o

u i ated to the elated ou te pa ts a d do u e ted i GGGI s e o ds.

However, after conducting an interview with the Rwanda CR, we found that the delay

in project schedule and deliverables was neither due to a lack of project management

skills nor due to incompetency of the consulting firm. It was due to a combination of

reasons including the considerable time that consultation takes and the lack of a

permanent Rwanda team. Furthermore, counterparties made many requests

–

GGGI tried to reflect each request in its output, the schedule was delayed and so was

the final output. Even though it was not explained in the QIR, the Rwanda team had

internal briefing session.

2. Project performance evaluation

The Rwanda country team did not have a performance evaluation method during

the review period of 2013 and 2014. According to GGGI, work performed during

2013 and 2014 consisted mostly of research and stakeholder engagement, which

was difficult to establish a specific timeline for. Currently, the project team uses a

result matrix and established a logical framework. The logical framework describes

all activities by stage, which is reviewed afterwards to check whether the activities

are performed and/or completed appropriately.

3. Quality Assurance for deliverables based consultant

The Rwanda CR stated that the deliverables of the Rwanda projects have all been in

English up to now, and also commented that if a client requires final deliverables in

the local language, an English version will be published along to ensure effective

quality review.

4. Quality Assurance for time based consultants

Three new time-based consultants were hired in 2015 for the Rwanda Project. When

the CR is in Rwanda, she ensures the working hours of the consultants in person.

When she is away, the responsibility of consultant management is delegated to

another personnel. However, the Rwanda Country Representative is hoping to

devise a more effective method of confirming consultant working hours even from a

remote location. Lastly, the Rwanda CR stated that standard working hours of

consultants are 8:00 AM to 5:00 PM, and that hours worked on weekends are not

recognized.

5. Compliance

The Rwanda CR also ensured that no payments are provided to Rwanda governors

or the private sector in return for participating in GGGI programs.

Budget

Management

According to the 2013 QIRs and 2014 variance reports, the

R a da P og a s

budget was USD 414,305 in 2013 and increased to USD 934,933 in 2014. In 2013,

over 50% of the budget was allocated to GGGI personnel expenses, including a

Senior Program Manager, Program Manager, and Program Assistant/Officer. Budget

for travel expenses of USD 74,128 was the second largest. As the phase in 2013 was

to scope the project and communicate with the government, budget for consulting

services occupied a relatively small amount, USD 23,529, for individual consultants.

The Rwanda team requested a budget revision in the 4

quarter of 2013. As a result,

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

the USD 135,000 originally budgeted for phase 2 of the Rwanda program was

reduced to zero, while the budgets for salaries, wages, and travel expenses were

doubled. Furthermore, according to 2013 4

quarter QIR, the team requested for

increase in the 2014 budget to purchase services from external outsourcing service

provider.

Comparing the budget for 2013 and 2014, salaries and wages have increased by 62%,

which is the largest increase excluding budget for outsourcing (consulting) services

which began in 2014. On the other hand, the number of employees and manpower

input did not change very much, averaging 3 persons during 2013 and 3.5 persons

during 2014. However, after conducting an interview with the Rwanda CR, we found

that this was due to a change in allocation rate resulting from cancellation of the

ENC project.

During the review of the QIR and variance report, high variance between the budget

and the actual disbursement was noted.

Although the average disbursement rate for the 2013 and 2014 budgets is

approximately 80%, the rate has fluctuated significantly in the 2

quarter of 2013.

In 2

quarter 2013, the Rwanda team disbursed more than 180%; however, a

quarter later the disbursement rate dropped to 31%. In the 2

quarter 2014, the

disbursement rate marked its lowest of 18% due to the outsourcing payment of USD

163,000 not being made as scheduled. The reason for non-execution of payment

was not documented in the QIR. According to GGGI, in the absence of an ERP system,

ODU had to manually collect information from the project teams and Finance Unit

on 40+ projects with the sole objective to facilitate internal communication flow and

track financial performance at the projects portfolio level (QPR). According to GGGI,

since ODU was not the primary source of financial data, it was not in the position to

spot and correct errors unless they were clearly evident.

The review of 2013 QIRs and Budget vs Actual Report shows high variance between

the planned budget amount and the actual disbursement amount as below:

(Currency: USD)

Period

Budget

Revised

Actual

Rate

2013 Q1

43,989

43,161

98.12%

2013 Q2

77,407

143,525

185.42%

2013 Q3

162,842

51,421

31.58%

2013 Q4

255,762

130,067

84,375

32.99%

2013 Total

540,000

414,305

322,482

77.84%

2014 Q1

2014 Q2

2014 Q3

2014 Q4

2014 Total

50,235

31,838

230,458

43,487

450,254

185,154

203,986

159,445

934,933

419,924

<2013-14 Budget Revision and Disbursement>

63.38%

18.87%

41.12%

78.16%

44.91%

One of the reasons for such variance was due to the low disbursement rate of salaries

and wages as shown on the table below. According to the variance report of 2014, the

disbursement of salaries and wages for the first five months was 70% on average, and

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

the rate decreased to 31% in June and July; the rate fluctuated from 141.15% to 17.42%

in August and September.

In 2014, payment of salaries and wages of full time staff did not follow the initial

plan as the average disbursement rate approximated about 58%. Only about half of

the budget was processed, and the disbursement rates also fluctuated highly with

standard deviation of 32%.(Currency: USD)

<2014 Monthly Disbursement of Salaries and Wages>

Period

Budget

Actual

Disbursement Rate

Period

Budget

Actual

Disbursement Rate

Jan

11,195

8,050

71.91%

Jul

25,666

8,050

31.36%

Feb

11,195

8,050

71.91%

Aug

25,666

36,227

141.15%

Mar

11,195

8,050

71.91%

Sep

93,582

16,298

17.42%

Apr

11,831

8,050

68.04%

Oct

37,582

16,298

43.37%

May

11,831

8,050

68.04%

Nov

37,582

16,298

43.37%

Jun

25,666

8,050

31.36%

Dec

37,582

16,298

43.37%

High variances between budget and actual may indicate that 1) The budget planning

was not conducted with full consideration of the program process, or that 2) The

program did not perform as efficiently as initially planned, or that 3) There has been

an unexpected event. The explanation for variance was not documented on the

variance report or the QIR. However, after conducting an interview with the Rwanda

CR, we found that it was also related to the changes in allocation rates resulting from

the cancellation of the ENC project.

Outsourcing

Management

During the performance of the Rwanda program, GGGI contracted a consulting firm

during the 1

quarter of 2014 for the purpose of the Developing Rwanda Secondary

Cities as Model Green Growth Cities with Green Economic Opportunities project.

The total budget for this consulting contract was USD 380,000 in 2014. The total

actual expenses for outsourcing services in 2014 was USD 164,560 which is less than

50% of the total budgeted amount as shown in the table below.

(Currency: USD)

Period

Jan

Feb

Mar

Apr

May

Jun

Budgeted

160,000

Actual

Period

Jul

Aug

Sep

Oct

Nov

Dec

Budgeted

220,000

Actual

96,000

64,000

<2014 Outsourcing Budget and Actual>

The budget amount of USD 160,000 out of USD 380,000 was scheduled to be

executed in June, but zero dollars were paid that month; a month later, only USD

96,000 (60% of the original amount) was processed due to low quality output by the

consultancy firm. Furthermore, of the USD 220,000 scheduled to be executed in

September, only USD 64,000 (30% of the original amount) was processed, again one

month later. Therefore, it can be concluded that the execution of the contract was

postponed, and that the payment was not processed as originally planned.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

According to GGGI, the delay in project payment was due to the following reasons:

Consultation itself takes up a lot of time, and the lack of the presence of

permanent Rwanda team was challenging. Further, counterparties made many

requests and as GGGI tried to reflect each request to its output, the schedule was

delayed and so was the final output.

The Project schedule was delayed from July 2014 to February 2015 with 3

amendments to the contract. The contract required the consulting firm to submit

two reports, with payment being made based on the submission of reports.

The report for Component 1 should have been delivered by March 2014; however

the contract was amended, and the report was submitted in July 2014. The

consulting firm did not deliver the report on time. Due to restraints in budget at

the time, GGGI decided to delay the project schedule and process the payment at

a later time than to force the consulting firm to meet the project schedule.

The submission date for report on Component 2 was shifted from December 2014 to

February 2015, due to the GoR

s dela ed e ie ; the

GoR reviewed and provided

feedback on the report submitted by the consulting firm. The consulting firm would

then edit the report based on the government feedback.

Counterpart

Interview

Prior to the Rwanda Trip, GGGI organized meetings for interviewees to be met in Kigali

for VfM evaluation. KPMG was able to interview the key person for the Rwanda project.

However, some of the counterparts previously interviewed for the Danish Appraisal

Report could not be interviewed due to scheduling conflicts. Therefore, interview was

conducted instead with their delegators who had an understanding of and participated

in GGGI

s R a da p og a .

The Rwanda Energy Group limited is one of the agencies under the Ministry of

Infrastructure, entrusted with expanding, operating and maintaining the energy

i f ast u tu e i the ou t . REG as a p odu t of the GoR s e e t efo that

led to

the dissolution of the former Energy Water and Sanitation Agency (EWSA). REG has

two subsidiaries, the Energy Utility Corporation Limited (EUCL) and the Energy

Development Corporation Limited (EDCL). The people on the list below were

intervie

ed to e aluate the effe ti e ess of GGGI s

support for the implementation of

the Second Economic Development and Poverty Reduction Strategy (EDPRS2) in

Rwanda:

Rwanda program

–

Public Sector

Department/office

Rwanda Energy Group(REG)

Mr. Patrick Mwesige

Rwanda

Authority(RHA)

Housing

Mr. Edward Kyazze

Name

Mr. Jean Bosco Mugiraneza

Title

CEO, Rwanda Energy Group

Technical Advisor, Energy &

Water Sector Reform

Head of Housing, Urban

Planning & Development

Division

Division Manager,

Urbanization, Human

Settlements, and Housing

Development Division

Director General

Coordinator - FONERWA

Ministry of Infrastructure

Rwanda Environment

Management

Authority(REMA)

Mr. Ir David Niyonsenga

Dr. Rose Mukankomeje,

Mr. Alex Mulisa

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

Rwanda Program - Private Sector

Department/office

Crystal Ventures

Name

Mr. Elias Baingana

Title

Chief Operating Officer

GGGI has worked very closely with them to support EDPRS2. In the case of REG, GGGI

is in discussion to hire a senior level consultant to provide direct support for working

in the REG office. Since there are fewer senior level staff who has experience and

knowledge of infrastructure economy in different countries, this consultant is expected

to transfer the knowledge/skill by training other staff in REG.

The counterparts in the public sector have considered the last two years as a

preliminary stage to cooperate with GGGI and are very eager to see the roadmap

which will be delivered by GGGI this June. They have a strong desire for rapid economic

development and a green growth approach but felt that they have a lack of knowledge,

skills, experiences and information. They have a very high expectation that GGGI can

support them in the manner of transferring skills/knowledge, helping to recruit the

relevant experts, perform pre-studies, facilitate introduction to the relevant parties

who are their role models and adopting new and feasible technologies. More

importantly they wish to develop a more stable and reliable partnership with GGGI;

therefore they are very satisfied that GGGI is working out of the Ministry of

Infrastructure building.

GGGI s

presence in-country has given the GoR the expectation

that the a e ei e GGGI s suppo t

more often through face to face meetings.

The counterparts in the private sector also have high expectations from cooperation

with GGGI, especially in regard to implementing bankable project after the roadmap is

delivered. Besides the feasibility test, they hope that GGGI can introduce and negotiate

with the funding company on behalf of the private sector.

Overall,

ou te pa ties satisfa tio

with working with GGGI is very high. The

interviewee from the Rwanda Housing Authority rated

GGGI s se i e

10 out of 10.

Below are suggestions provided to GGGI by the counterparts in Rwanda:

Need to have tangible results, at least some pilot testing results or a visual

demonstration so the stakeholders can easily

u de sta d GGGI s deli e a les

Boost program awareness by arranging workshops and introducing

stakeholde s e gage e t p og a

Provide progress status notifications including rescheduling/

challenge/obstacles so enhance ministry engagement with the project

Recommendations

The followings are recommendations for improvements and changes that can be made

by GGGI to enhance its 3Es in its activities:

Program Management

Delayed project schedule and deliverables

Project delay is understandable, but there is a need to analyze the cause and result

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

IV. Core Fund Project Management

in order to prepare remedial action plans. Also, the analysis should be recorded into

QIRs for recording purposes and Knowledge Management. Without it, preparing the

QIR has not accomplish its fundamental purpose.

Project performance evaluation

Project performance evaluation is necessary to evaluate the 3Es of GGGI activities.

In order to determine how the input has resulted in an efficient and effective output,

GGGI should establish an evaluation method that not only reviews whether actions

are performed, but other aspects as well.

GGGI also needs to establish an organization-wide or regional wide KPI to enable

comparison between programs. If government implementation of outputs is set as

the KPI, some countries with high country-level-risk may show as a failure no matter

how great the program management and outputs were.

Budget Management

It is understandable that high variances between budget and actual may incur but

the lack of detailed explanation or analysis brings unnecessary attention.

Outsourcing Management

It is understandable that an outsourcing service contract has delays but the lack of

detailed explanation or analysis brings unnecessary attention.

Conclusions

Overall, the performance of the Rwanda program is satisfactory.

There were some project and deliverable delays in the period of 2013 and 2014.

However, it as this happens in the course of general business there is no significant

exception or abnormality drawing our attention. The project is well managed and

operating efficiently and effectively.

However, this does not mean that there are no improvements needed. As the

Rwanda program progresses, it is crucial that GGGI maintain an accurate and

thorough internal documentation that depicts the activities of the country team in

detail.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

GGGI’s Ope atio s Ma age e t

1. Procurement

2. Human Resource

3. Finance

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V. GGGI’s Operations Management

1. Procurement Management

Overview

The role and objective for Procurement is to achieve Value for Money, by means of

obtaining the best terms and conditions for fulfilling the GGGI needs, and by making

use of a competitive market. In 2013 GGGI decided that one of the most effective ways

to obtain Value for Money was to establish a Procurement Unit. This was effectuated

by hiring a Head of Procurement, who joined GGGI in September 2013.

We have performed tests on the samples selected to examine whether GGGI is

acquiring the appropriate type, quality and amount of resources (staff, equipment and

facilities) at an appropriate cost for the Mongolia and Rwanda programs. We have also

checked whether the resources acquired are being used optimally in delivering the

appropriate quantity and quality of services in a timely manner, and whether the

documented procedures are operating effectively in practice. Professional Standards

such as COSO

–

an internal control framework - and Sarbanes Oxley regulations were

used as references to determine whether GGGI is following the appropriate operating

and procurement procedures.

As part of the test procedure, relevant documents were reviewed and an interview

was conducted with the Head of Procurement. The details of the interview are as

follows:

- Total number of Interviews: 3

- Total interview time: 115 minutes

- Interview Purpose: To gain a thorough understanding of the procurement process

Lastly, a simplified process map of the procurement function was created after

reviewing the relevant documents and confirming the interview summary. The process

map focuses mainly on the activities that produce the output of each procedure; a

copy of the process map can be found in Appendix 3, and the findings are also listed

with the process map as a reference.

History of

Procurement

Management

The main function of the GGGI Procurement team is to acquire the goods, services,

and outsourcing at the best possible price in order to meet the needs of the acquirer

in terms of quality, quantity, time, and location.

Prior to September 2013, GGGI's procurement management function was

decentralized, and procurement affairs were managed by each division due to the lack

of the procurement team. These deficiencies, which were pointed out in the Danish

Report, were remedied starting in mid-2013. To obtain Value for Money, GGGI

introduced a new procurement rule in June 2013, and in order to strengthen the

procurement function appointed a Head of Procurement in September 2013.

Furthermore, a standardized procurement request template has been introduced as

of early 2014, and the Head of Procurement reviewed and approved all procurement

requests. As a result, an official, centralized Procurement Unit was created in the Seoul

headquarter.

Furthermore, the Head of Procurement emphasized that even though the heavy

workload and the lack of workforce (composed of one department head and one staff

member) has imposed a burden upon the procurement team, over 600 contracts

ep ese ti g so e of % of GGGI s udget e e p o essed ithout dela despite

the heavy workload.

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V. GGGI’s Operations Management

The percentage of consultant related contracts out of all procurement contracts is as

follows:

2013

2014

By number of contract

By contract amount

Mongolia

No data available

85%

89%

Rwanda

100%

25%

Findings

[Policies]

After reviewing the procurement rules, Delegation of Authority (DoA)

manuals, and the changes to DoA, we have noted that the procurement approval

procedure appropriately changed depending on the contract type and the amount.

However, although the policy is well established, some deficiencies were found in

practice. Secondly, although the DoA mentions vendor management, the procurement

ules do ot i lude o te ts elated to Due Dilige e o

e do Ma age e t .

A o di g to the Head of P o u e e t, GGGI s e do due dilige e p o edu e la ks

an objective criteria as it consists of only the Head of Procurement's independent

review. Furthermore, the professional liability insurance's contract guarantee

percentage level is decided based only on the Head of Procurement's opinion. Prior to

forming a contract with the vendor, the vendor should be evaluated upon clear and

objective criteria such as the vendor's financial status. The documents required from

the Vendor should also vary depending on the result of evaluation.

[Procedures & Process]

We noted that the internal controls of the procurement

process are well designed with respect to authorization, review, and segregation of

duties, as seen on the procurement process map. However, some user made

exceptions were identified in practice.

The Compliance Status of the Internal Procurement Procedure: Mongolia Program

- The Annual Procurement Plan for the Mongolia program was only submitted for

2014; a procurement plan was not submitted for the year 2013.

- Procurement requests (PR) were not processed in a systematic manner prior to

September 2013; instead, requests were handled by the teams (requesting

procurement) themselves. Hence, the current procurement team does not have

the custody of the relevant PR document; the documents are kept by the each

team.

- A certain percentage of the procurement contracts created after September 2013

were not processed appropriately, and only the disbursement requests were

submitted.

55 out of 66 contracts (83%) for the Mongolia program in 2014 did not comply

with the proper procurement procedures. The project had started before the final

approval was given, and the request for contract approval was submitted

immediately before the project

final date in most cases. Furthermore, 2 contracts

were approved by the Head of Procurement past the project end date.

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V. GGGI’s Operations Management

※

Procurement of Individual Consultants for the Mongolia Country Representative

One procurement contract was made during the fourth quarter of 2014 for the

Mongolia Country Representative (CR). This procurement contract has adapted rules

from both the Human resources and the procurement department.

- Supporting documents necessary to prove that the procurement was either

budgeted in advance or had gone through budget reallocation could not be found.

- The consultant is subject to annual leaves & compensation.

- The consultant procurement contract was created to prepare for future possible

transfer to a permanent employment agreement. After the transfer, the salary

component corresponding to the benefits the consultant receives would be

deleted, as the consultant would be applicable for GGGI benefits after the transfer.

The Head of Procurement explained that GGGI is not able to execute employment

agreements due to lack of legal status in some countries; consultant contracts are

therefore the only options to perform duties in such countries.

- To recruit the Mongolia CR, the HR process was applied instead of the Procurement

process. According to Head of Procurement, interviews and selection of the best

candidate is done by the end users under supervision from HR. This was a special

case because the candidate was hired as a consultant only because employment

as a staff was not allowed.

(Please

refer to the Human Resource Management section to see whether GGGI

is acquiring the appropriate type, quality and amount of resources at an

appropriate cost.)

- The consultant contract did not comply with the Delegation of Authority

Manual. When the amount of a consultant contract is over USD 80,001, the

Director General, not the Deputy Director General, should select the

consultant.

GGGI has explained that it is due to the fact that the decision was in

accordance with the HR rules for staff hiring, whereas the decision on

selection was made by HR. To manage the fact that GGGI were not able to hire

the person as staff, a temporary consultant contract was executed. It was not

deemed feasible to undergo a new procurement process for this, i.e. start all

over. The HR procedures are in essence identical with the procurement

procedures.

- By reviewing the relevant procurement documents, we noted

that the o sulta t s

Monthly Timesheet and Activities Log (called Progress Report) had abnormal

contents. During November and December 2014, the consultant worked 56 hours

during 17 business days from a remote location (specific detail of the location is

not mentioned). On some days the consultant worked only one or two hours per

day.

(Please

refer to the Human Resource Management section for more explanation.)

※

Procurement of 52 Mongolian governors for the Green Development Roadmap

Project (34 for the Green Development Roadmap Project and 18 for the Green

Indicators Development Project)

- 79% of the contracts were made on December of 2014.

- 94% of the contracts were signed with Mongolian program counterparties. The

proper procurement sequence was not followed as the contract was signed after

the project start date. The contract date is the same as the project ending date.

- Although we could not find any supporting documents on the decision to hire

Mongolian governors for the Green Development Roadmap Project (the

consultant is an officer of the Ministry of Industry and therefore, participating in

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V. GGGI’s Operations Management

the project should have been one of his tasks as the Mongolian officer), GGP&I

provided an explanation. Please refer to 2. Mongolia program in chapter IV. GGGI

Core Fund Project Management.

Compliance status of internal procurement procedure: Rwanda Program

- An Annual Procurement Plan was not created in 2013 and 2014.

Procurement requests (PR) were not processed systematically before September

2013. Such issues were handled individually by the teams requesting procurement.

Therefore, the procurement team does not have relevant PR documents regarding

the PR; the documents are kept by the teams.

3 out of 10 contracts (30%) did not comply with the proper procurement procedures:

For the Danish Appraisal Preparation Project, EAC Scoping Project, and Rwanda

Programs, the project commenced before the final approval was made.

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V. GGGI’s Operations Management

2. Human Resource Management

Overview

The main objective of evaluating Human Resource (HR) Management is to assess the

economy, efficiency, and effectiveness by reviewing the Design of Process and the

quality of deliverables in each step. The scope of the HR process evaluation is limited

to supporting processes related to the Mongolia and Rwanda country programs which

happened in 2013 and 2014.

To examine the HR procedure, interviews were conducted with Head of HR and the

Compensation and Benefits Specialist, and documents were reviewed.

The total number of Interview: 2 times with Head of HR and 2 times with the

Compensation and Benefits Specialist

The total interview time: 120 minutes

Interview purpose : To gain a thorough understanding of the HR process

We have performed sampling tests to examine whether GGGI is acquiring the

appropriate type, quality and amount of resources (staff) at an appropriate cost for

the Mongolia and Rwanda programs, and whether GGGI has been using such resources

optimally in delivering the appropriate quantity and quality of services in a timely

manner. Additionally, whether the documented procedures are operating effectively

in practice was also reviewed.

The simplified process map of the Human Resource function drafted after the

interview summary was confirmed and the relevant documents that were reviewed

can be found in Appendix 3. This simplified process map focuses mainly on the activity

which produces the output of each procedure. The findings are also listed with the

process map.

Since most HR data includes sensitive personal information, HR performance was

evaluated by interview and its confirmation unless there was points to be clarified. For

this reason, HR function evaluation heavily relies on the interview summary, rather

than the sampling tests.

Progress of

Human Resources

Unit in 2013 and

2014

Although, centralized management and official documentation standards existed even

in 2013, the system was standardized and made more efficient in 2014. GGGI

implemented Staff Regulations and Rules, a Learning-Development-Policy, a Policy on

GGGIs Representation Expenses, and a Policy on Opportunities for Visiting Persons to

and from GGGI. GGGI recruited two HR professionals from January 2014 (the Senior

Compensation & Benefit Specialist, and the Head of Human Resources), responding to

the previous audit comments. The impact of bringing these skills in HR areas resulted

in significant cost savings for GGGI and its staff, hence Value for Money. The examples

of cost savings include, but are not limited to: elimination of Payroll administration fee,

restructuring benefit schemes in a legally proven tax effective manner, clarifying GGGI

obligations to participate in national social security programs for expatriates, and

negotiating lower premiums with service providers. More rigor and due process was

brought in to staff recruitment. The quality of performance management mechanism

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V. GGGI’s Operations Management

improved significantly by bringing in the discipline to evaluate against annually agreed

individual targets. Further, the linkage of individual work targets to the Departmental

and Organizational goals in the Bi-annual Work Program Budget approved by the

Council, was established, to ensure organizational effectiveness.

Each division head managed personal leave and vacations in 2013; in 2014, a personal

leave coordinator in each division began to support division's vacations management.

The role of this coordinator is to help managers follow up on personal leave requests.

The personal leave system itself has been automated through use of ERP. Since ERP

provides automated checking functions, risks that a staff uses more personal leave

than she/he is allowed can be prevented. In 2013, allowance payment was processed

though the IS system, therefore requestors could ask for allowance payment at any

times. However, starting in 2014,the allowance system has been consolidated into

payroll and began to be paid on a monthly basis.

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V. GGGI’s Operations Management

Interview

summary for

Human Resource

Unit

1. Human Resource Function

GGGI s Hu a Resou es Re uiti g fu tio is di ided a o g

the entire organization,

with HR sharing its role and responsibilities with the procurement function. HR

oversees staff recruitment and procurement oversees consultant recruitment; the

differences between staff and consultants are as follows:

1) GGGI staff is under a fixed-term contract (1-year minimum, 3-year maximum)

Furthermore, staff are entitled to compensation and benefits such as annual

leaves, health insurance, and retirement funds.*

2) Consultants employment terms are short and definite, often less than 1 year;

duties are project-oriented and ad hoc based. Staff are usually employed for longer

term, and their duties are not specifically project-oriented.

Consultant recruitment is controlled solely by the Procurement Unit, though HR

provides advisory services. Such division of roles and responsibility (R&R) is common

for international organizations, such as World Bank, Asian Development Bank and

United Nations. The reason consultant procurement is managed by Procurement and

not HR is that Consultants are normally individuals or organizations who are hired to

manage the short term or specific workforce needs of the organization and therefore

have a different set of internal processes of acquiring, contracting, invoicing and

managing them. In most countries the regulatory framework for contracting

consultant is also different from contracting employees/staff, which could have been

another reason to keep the two under separate departments. GGGI expects all its

workforce (consultants/staff/contractors/interns) to uphold the similar work ethics

and code of conduct.

1.1 Staffing Plan

In order to avoid overstaffing, idleness, duplication of effort, and work with little or no

purpose, GGGI performs a chain of controls in each country program and division

which are then reported to the Council. By the chain of controls, an approver or a

requestor should ensure that the above inefficiencies do not take place.

It is ea h di isio s espo si ilit to e su e the o siste

a d ele a

of staff

requests

ith o k p og a s o je ti es. E e tuall , all staff e uests ill e e ie ed

by the Council and those within the resources pledged by the donors will be approved.

A Staffing plan, driven by the biannual work program derived from the 2015-2020

strategy, is prepared by each division. The plan is then internally reviewed at different

levels and at the Council, which then is approved as the Work Program and Budget

2015-

. HR s ole i the pla i g phase is

to provide advisory services, data, and

technical comments.

HR provides a platform and ensures due process is followed for staff recruitment;

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V. GGGI’s Operations Management

eventually, a qualified staff for each position should be recruited according to Staff

Regulations and Rules, and job descriptions.

Staffing is an activity that is interconnected between relevant divisions including

Human Resources.

A clear alignment among

GGGI s ea st ateg pla , ie ial o k p og a a d

the

budget of each division, and the staff plan of each division was created to ensure that

all staff requests share the common purpose of strategic objective achievement.

1.2 Follow up on the Danish Appraisal Report

The Danish Report pointed out that although GGGI recognized the ideal allocation of

manpower between HQ and country to be 50:50, the process of allocation adjustment

was slow partially due to financial distress. On this issue, the Head of Human Resources

confirmed that the current manpower allocation for GGGI is 69% HQ and 31% country,

and 58% business and 42% administration as of end of February 2015.

The delay to ratify Host Country Agreements is another reason for the slow

deployment of staff in-country. However, headcount limits imposed by Council and

hiring freezes linked to austerity budgets had the largest impact in how and when staff

were hired.

2. Payroll & Compensation Function

2.1 Payroll

GGGI's payroll process was partially outsourced in 2013 to Ernst & Young, specifically

in tax calculation. From 2014, GGGI started managing all of its own payroll to achieve

cost saving (economy) and efficiency. To ensure efficiency, GGGI operates the process

in compliance with DoA, and the full implementation of the ERP system is expected to

strengthen the efficiency by automating the controls. For instance, to validate a

monthly payroll GGGI reconciles the

u e t o ths pa oll ith pa oll f o

the

previous month. The result of reconciliation is approved by DoA. The reconciliation for

Employee Benefits, Pension, and Medical Insurance is performed via reliable external

resources

2.2 Compensation

GGGI has improved its leave and allowance benefits gradually and has been ensuring

efficiency by following proper DoA and control measures. In 2013, with manual leave

processes and forms, all leave or allowance request were submitted via email or

memorandum. GGGI designed and implemented standardized forms in August 2014.

Tha ks to ERP, a auto ated he k o

as i t odu ed a d i ple e ted. ERP s

personal leave module was implemented in Nov 2014 and all approvals and

calculations have been automated.

3. Performance Measurement for staff

Performance management is performed to determine

hethe GGGI s staff has

adequate skills required to conduct assigned tasks, link the individual annual goals to

the organizational business goals (2015-2016 Work Program and Budget), and ensure

the effe ti e ess of staff s pe fo

ance, output and outcome against the annual i

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V. GGGI’s Operations Management

ndividual goals. GGGI's performance management system consists of a 5-tier

performance rating, from unsatisfactory to excellent. The performance level of a

staffmember shall be appraised once per year, in accordance with procedures and

guidelines established by the Director-General. The process starts with setting an

annual goal, and each division head evaluates staff's achievement in comparison with

the goal and gives a proper rating. If a staff gets a rating below satisfactory, he or she

would not be granted annual salary increment.

GGGI s a age e t de ided to diffe e tiate the pa i ease o l fo those ho do

ot eet the satisfa to

ati g. GGGI a ot e ead to diffe e tiate the

incentives further yet based on performance because GGGI is a relatively newly

esta lished o ga izatio , a d o l has

ea s e pe ie e of pe fo a e

management. Further, concern and feeling of unfairness may arise if a differentiated

incentive system is implemented before employee perception adjusts to accept

performance management. Therefore, the differentiated incentive system should be

implemented once the employee culture evolves to accept performance management.

Employees (both those being evaluated and those that evaluate) understand the key

principles of Performance management, and Performance culture matures at GGGI.

The HR manager also commented that some donors are not receptive to more than

inflationary salary increase.

GGGI started to set a more rigorous performance target for each staff at the beginning

this year. Furthermore, according to GGGI all three CPDs have aligned their KPIs and

that of their teams with organizational, DG, and divisional performance targets for

2015. By the end of 2015, one full circle of efficient performance management will

have occurred. GGGI recognizes that a link between performance and rewards is

needed. In the 2015 work plan GGGI decided to design both monetary and non-

monetary rewards for performance. The current system already utilizes a result-based

approach, as each staff sets a goal (linked to the Departmental goal) at the beginning

of the year, and their performance is evaluated against the goals at the end of the year.

An incentive mechanism for 2016 could either be monetary or non-monetary.

Findings

[Procedures & Process] HR related Findings from Procurement of the Country

Representative

–

Mongolia

The contract sample was examined to determine whether GGGI was acquiring the

appropriate type, quality and amount of resources (quasi staff) at an appropriate cost.

The reason this contract was selected as a test sample is that the contract was found

to have taken irregular procedures which GGGI had not taken in the past, even after

considering the fact that GGGI is a new organization. Secondly, the amount of the

o t a t is elati el high, a d the o t a t as eated a out

o ths afte GGGI s

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V. GGGI’s Operations Management

passing of the Cash Flow Drainage in 2014. Lastly, it is a relatively new transaction and

made after issuance of the Danish Appraisal Report. For these reasons, relevant email

records among the relevant stakeholders such as the DDG, HR, GGP&I and

Procurement was reviewed.

Although budget was not allocated for this transaction, a document noted that budget

was checked by the Senior Strategy & Planning Specialist and Budget Officer in May

and October 2014.

The Human Resources Unit currently does not manage the manpower in the project

management process. HR neither provides guidance nor enforces strict directions on

the consultant progress report, and does not make enough effort to ensure that the

hours worked and the tasks performed by the consultant are accurate.

According to GGGI, enforcing the activity of consultant progress reports is not part of

HR espo si ilities. Mo ito i g p og ess a d ti e sheet is pa t of o sulta t s

a age s espo si ilit . Ho e e , as all

orkforce in GGGI are supposed to follow the

highest standards of work ethics and excellence in their office, HR uses all

opportunities to educate/support the managers to drive the performance orientation

in their teams.

Furthermore, we observed that the role of the Procurement Unit becomes very similar

to that of HR's for procurement of consultants with a total amount over 80,000 USD.

In addition, the number of staff on the procurement team was found to be very low

considering the number of procurement contracts processed.

The Job Description and Qualifications required for the Country Representative

position noted in HR Requisition Form was compared and analyzed. Candidate

A declined an interview offer. The awarded consultant had received higher

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V. GGGI’s Operations Management

interview scores than Candidate B.

Testi g app op iate type, uality of Resou es a ui ed y o pa i

Qualifications

Awarded Consultant

Candidate A

Masters or PhD

MBA,

and

B.A. in

MPA and B.A. in

level or

Physics

and

Geography

equivalent,

Anthropology

preferably in

Engineering,

Economics, or

Business and

Finance

10 years of

Not all experiences

Very strong record of

relevant

are relevant, and

relevant Experience,

experience.

months of the career over 20 years

start and end date

are not shown.

Multi-cultural

literacy and easily Yes

Yes

adaptable

Strong oral and

written English

Yes

essential

Fluency in

Mongolian an

Conversational

None

advantage

g a didates’ CV

Candidate B

Masters of

Science,

Agricultural

Economics

B.A. in Business

Administration

Very strong

record of relevant

experience, over

20 years

Yes

Basic

Resources were acquired at an appropriate cost by comparing the salary for Previous

and current Country Representatives.

Both the previous Country Program manager and current Country Representative are

grade C3 level staff. However, only the current CR resides in Mongolia; the previous

Country Program Manager resided in Seoul. Furthermore, the previous Country

Program Manager had about 10 more years of experience, but the base annual salary

is slightly higher for the current CR.

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V. GGGI’s Operations Management

Recommendation

[Recommendation 1]

HR needs to engage more actively when dealing with manpower in the project

management process. Currently, consultants constitute about 40% of GGGI

s o e all

workforce. If HR does not enforce strict directions and guidelines on how consultants

calculate and prove working hours and improve the progress report template, the risk

of fictitious contracts being made would increase. The media in Korea has already

accused K-GGGI of being used as a money laundering route by Korean Government by

making contracts with multiple individual consultants in the past.

[Recommendation 2]

For performance evaluation of individuals, we recommend introducing the 360-degree

feedback (multi dimension evaluation) to produce fair results. The supervisor has

power to evaluate his or

he staff s pe fo a e; the efo e, the e e ists a isk that the

evaluation result is biased due to personal relationships between staff.

[Status in 2015 as Confirmed by GGGI]

GGGI is already introducing the 360. The DG

committed to this at the beginning of the year, and it is in the approved 2015 HR Work

Program to roll out.

[Recommendation 3]

More evaluators and appraisers need to be involved in the assessment procedure, such

as colleagues and clients. Furthermore, staff should also be evaluating their

supervisors.

[Status in 2015 as Confirmed by GGGI]

GGGI contemplated to introduce a multi-rater

feedback mechanism for the 2014 evaluations, but after rigorous discussion, the

Management Team decided it is premature to do so given the small size of GGGI and

the early stage of instigating performance culture.

[Recommendation 4]

Even though procurement of consultants is managed by the Procurement Unit,

a agi g a d p o idi g guida e a d o e sight to these o sulta ts should e HR s

responsibility. HR should at least provide consultation service to procurement or

cooperate with the Procurement Unit

http://www.wkh.kr/khnm.html?mode=view&artid=201402251610121&code=115

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V. GGGI’s Operations Management

[Recommendation 5]

Considering the number of Procurement team staff members and the number of

procurement contracts, some roles performed by the Procurement team should be

transferred to the Human Resources unit. When the contract amount for an individual

consultant is above USD 80,000, the hiring process of a consultant becomes similar to

that of a staff member. We believe that combination of roles will reduce the workload

burden felt by the Procurement team. We have considered the fact that other

international organizations also differentiate between recruiting consultants and staff.

However, compared to the other organizations, GGGI is a relatively new organization

with a different organizational size, and is still establishing and developing its internal

procedures; therefore, direct benchmarking of other international organizations may

not be the most efficient method.

Conclusion

The payroll and compensation management sectors seem to have improved. However,

it is hard to conclude that the recruiting function is being operated in an efficient way

because the function is divided between Procurement and the Human Resources unit.

In particular, for Procurement Contract No.PAI-2014-358, the division of roles between

two departments involved is vague; the rules and policies of both the Procurement

and Human Resources unit were applied as a result, leading to ineffectiveness. Even

after considering the fact that GGGI is an international organization, HR should still be

more actively involved in relevant processes, such as providing feedback and opinions

and working towards improving management tools such as document formats.

Though we evaluated only ONE sample test, the result of the test is quite unsatisfactory.

GGGI is not acquiring the appropriate type, quality and amount of staff at an

appropriate cost based on the test result.

Also, the lack of guidance and monitoring of

the o sulta t s ti esheet a d p og ess

report raises our concerns about the quality of their deliverables in the Mongolia

program, and so the HR function in GGGI is not operating efficiently and effectively.

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V. GGGI’s Operations Management

3. Finance Management

Overview

The main objectives of evaluating the finance procedure is to assess the economy,

efficiency and effectiveness by reviewing the Design of Process and the quality of

deliverables in each step. The scope of finance process evaluation is limited to the

supporting processes related to the Mongolia and Rwanda country programs in 2013

and 2014.

To assess the finance procedure, interviews were conducted with the Head of Finance,

and the Head of Corporate, and documents were reviewed.

- The total number of Interview: 3 times with the Head of Finance and 2 times with

Head of Corporate

- The total interview time: 125 minutes

- Interview purpose: To gain a thorough understanding of the process

We performed sampling tests for the Mongolia and Rwanda programs to determine

whether GGGI is using the appropriate operating and procurement procedures, and to

ascertain whether documented procedures are operating effectively in practice.

The simplified process map of the finance function drafted after the interview

summary was confirmed and the relevant documents reviewed can be found in

Appendix 3. This simplified process map focuses mainly on the activity which produces

the output of each procedure. The findings are also listed with the process map.

Professional Standards such as COSO

–

an internal control framework - and Sarbanes

Oxley regulations were used as references to determine whether GGGI is following the

appropriate operating and procurement procedures.

History of

Budget/Travel

[Budget Management]

GGGI s udget p o ess ha ged f o

, GGGI did ot ope ate a

systematic review process; the review process relied on division heads. From 2014,

various divisions joined for a challenging session and the necessity and validity of

budgets were reviewed. GGGI also shifted from one a year work and budget plan to a

multi-year plan in 2014.

Implementation of an accounting software called EMAX in 2014 has improved the

budget monitoring function and enabled the creation of a monthly budget variance

report. Furthermore, the currency used in the previous budget system was KRW, so

the currency had to be converted into USD which caused inefficiency. Finally, Actual

budget execution of each program can only be monitored via a Quarterly

Implementation Report (QIR

–

prepared on a quarterly basis) in 2013.

[Travel & Expense Management]

The ole of Co po ate Se i e U it s T a el Tea is to se e as the fo al poi t fo T a el

by GGGI staff. They provide advisory and guidance to GGGI staff in understanding the

travel policy and guidelines which became effective on January 1 of 2014, and ensure

that the travel policy and guidelines are up-to-date (by managing and communicating

the approved changes) and are readily accessible to all GGGI staffs.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

The unique

featu e of GGGI s t a el e pe se a age e t s ste is that a issio

travel report, which allows the project team to monitor the project status, must be

submitted within seven days of journey completion in order for expenses incurred

during the mission trip to be reimbursed.

Follow up on

Danish appraisal

report

[Budget Management]

According to the Danish appraisal report, it is important that GGGI, as part of the

strategy process, develop the concept, size, and plan for the accumulation of a working

capital (reserve) to ensure that priority activities can always be undertaken when cash

flow is challenged. Finance regulations adopted in January of 2014 also requires that

GGGI maintain a working capital fund. However, GGGI was not able to set-aside the

working capital fund for 2014, because the budget process for 2014 had already

started in 2013. GGGI practiced prudent cash planning, and therefore no longer has

problems in cash deficiency. Therefore, GGGI is able to retain working capital fund of

USD 5 million for each of 2015 and 2016. We have noted that the amounts stated in

the work program have been submitted to and approved by the council.

1.1 Findings from Evaluating Budget Management

[Policies]

We did not find any deficiencies or flaws in budgeting policy.

[Procedures & Process]

The overall internal control of the budget process was well

designed with respect to Authorization, Review and Segregation of Duties as seen the

budgeting process map. However, we observed that exceptions to the process were

made by users in practice.

The Procurement report noted that the budget for the Procurement of the Country

Representative

–

Mongolia has been checked with the Senior Strategy & Planning

Specialist and Budget officer on May and October 2014.

Findings

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

However, we could not find any mention of the Procurement of the Country

Representative

–

Mongolia on other budget documents.

Compliance status of internal budgeting procedure by the Mongolia Program



Budget reallocation had not occurred for the unplanned procurements.

Procurement of Individual Consultants for the Green Development Roadmap Project

and the Green Indicators Development Project.

- One procurement contract (hiring the Mongolia Country Representative) was

created in the fourth quarter of 2014. However, the procurement process included

rules adapted from both the Procurement and Human Resources units. As a result,

the contract had impact on the Budget Management.

- We were unable to find documental evidence that showed the procurement

contract was either planned / budgeted or had reallocated budgets for 2014.

According to the detailed project proposal, procurement plan, and variance report of

2014, the initial budget for outsourcing in 2014 was USD 340,000; the budget was

solely for procurement of a consulting firm, and not for an individual consultant.

According to this data, the procurement contracts for the Individual Consultants were

neither planned nor budgeted during the planning and budgeting step.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

Even if the budget had not been allocated in advance, a request for reallocation of

budget should have been made in order to execute the contract. However, evidence

that such a request was made could not be found on any of the related documents.

Jan

Outsourcing

(consulting)

Outsourcing

(Honorarium)

Outsourcing

(Consultant)

Outsourcing

(Others)

Budgeted

Actual

Budgeted

Actual

Budgeted

Actual

Budgeted

Actual

Jul

Outsourcing

(consulting)

Outsourcing

(Honorarium)

Outsourcing

(Consultant)

Outsourcing

(Others)

Budgeted

Actual

Budgeted

Actual

Budgeted

Actual

Budgeted

Actual

1,000

47,276

Aug

102,000

1,000

Feb

Sep

33,000

2,000

Mar

47,276

Oct

2,000

2,844

Apr

102,000

1,000

Nov

2,000

13,083

May

Dec

161,000

1,000

33,583

3,950

Jun

2,274

*figures

in Red:

Payments executed without budget

1.2 Findings from Evaluating Travel Expense Management

[Procedures & Process]

Mission request forms, a written approval received prior to

business trips, has changed from 2013 to 2014. Mission request forms in year 2013

was mixed with the disbursement request (and the invoice attached) incurred prior to

travel; therefore, the Delegation of Authority (DoA) was up to a financial level. In 2014,

the mission request form was separated from the disbursement request, and therefore

the DoA was changed from a

fi a ial le el to o l the e uesto s supe iso fo faste

internal approval.

Overall, the internal control process for the travel expense management procedure

was designed well with respect to Authorization, Review and Segregation of Duties as

seen the Travel expense process map. However, we found that exceptions to the

process were made by users in practice.

Compliance status of internal travel expense procedure by the Mongolian Program



3 out of 5 sample mission travel reports did not follow the proper document

procedures. Mission travel reports from the periods of March 11 2013~March

16 2013, March 04 2013~March 08 2013, and June 16 2013~June 25 2013

were not submitted within 7 days of journey completion.

Compliance status of internal travel expense procedure by the Rwanda Program



According to testing of the samples selected, internal procedures on travel

expense operated well during the Rwanda program of 2013~2014.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

Per Person

Expenses of

Mongolia and

Rwanda Programs

1. The reason behind the

40% decrease in salary and

wages and the 60% increase

in outsourcing cost (amount

in 2014 compared to the

amount in 2013) is not due

to changes in the number of

personnel in the Mongolia

team, but due to hiring the

Country Representative as a

Consultant.

2. Payment disbursed under

the category of Allowance

decreased by 94%; welfare

payment started to be

distributed in 2014.

3. Travel Expense decreased

by 60% from 2013 to 2014,

because the number of

business trips decreased

from 10 times in 2013 to 8

times in 2014.

4. Payment disbursed under

the category of Conference

Expenses increased by 80%.

Mongolia Program Expense Report 2013-2014

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

2013

Salary and Wages

Outsourcing cost

Travel expenses

Conference expenses

Others

Employee benefits

Welfares

Allowances

182,032.91

65,639.18

50,723.37

15,999.30

3,143.72

861.15

36,504.00

2014

109,126.74

104,009.92

20,402.43

28,768.37

2,710.52

401.54

23,731.27

2,365.49

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

1. Salary & Wages increased

by 30%.

Outsourcing

cost

increased by 200% in 2014

compared to 2013 due to

the first payment of USD

160,000 on the contract with

a consulting firm created on

January 2014.

3. Payment disbursed under

the category of Allowance

decreased by 25%; welfare

payment started to be

distributed in 2014.

4. Travel Expense decreased

by 50% compared to 2013.

5. Conference Expenses

decreased by 96% in 2014,

because most of the

conference expenses spent

in 2013 were a one-time

expense incurred from

EEBCEA Workshop.

Rwanda Program Expense Report 2013-2014

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Salary and Wages

Travel expenses

Outsourcing cost

Others

Conference expenses

Employee benefits

Welfares

Allowances

2013

121,138.49

104,067.66

51,600.66

1,577.28

27,067.89

382.03

18,924.61

2014

157,769.58

51,088.37

164,560.00

1,189.53

1,142.69

192.11

29,420.14

14,470.84

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

V. GGGI’s Operations Management

Recommendation

[Recommendation 1]

The budget check function in budget management should be strengthened to ensure

that transactions are conducted only if sufficient documental evidence of prior budget

allocation is available. The budget check process should also be documented in detail

to ensure completeness and effectiveness of the check process and to prevent

miscommunication between departments.

In conclusion, GGGI put in effort to improve the efficiency and effectiveness to deliver

o the o ga izatio s o je ti e.

As for the budgeting process, consistency has been checked through challenge

sessions to improve the quality of work plan and budget from 2014. Furthermore, for

the 2015 budget, GGGI started to practice prudent cash planning based on anticipated

cash flow scenarios. The cash planning enabled GGGI to set aside a working capital

fund of USD 5 million in 2015 and 2016.

The details of the travel expense management policies were improved during 2014.

Testing the travel expenses selected as samples confirmed that the documented

procedures were operating effectively.

Conclusions

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

VI.

Enterprise Resource Planning

1. ERP Development

2. IT General

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

1. ERP

Overall

The main objective of evaluating the ERP development project and general IT is to

assess whether the project execution and IT management were executed according to

the Es e o o , effi ie ,

and effectiveness) by reviewing the development

progress, project management and general IT management in 2013 and 2014.

Professional Standards such as COSO

–

an internal control framework - and COBIT-5

–

an IT management framework - were used as references to determine whether GGGI

is following the appropriate operating and procurement procedures

Development

Objectives

Enterprise resource planning (ERP) is a business tool that integrates business

applications to enable organizations to collect, store, process, and extract

information that can be used as a reference in management's decision making

process. Generally, the business applications are used to aid processes such as

planning, manufacturing or service delivery management, sales and marketing,

inventory management, human resource management, procurement and such. The

key objective of ERP implementation is providing high-level and integrated point of

view on core business processes on a real time basis.

According to GGGI's ERP Status Report, the primary reason behind GGGI's ERP

development and implementation was the need for innovation in business

processes to meet organizational strategic objectives. These needs increased

expectations of the IT department, and expanded the responsibilities of GGGI's IT

department to include roles as business enabler and cost optimizer in addition to

technological aspects. Therefore, the ERP system currently being developed is to be

one of the critical solutions to realize and deliver GGGI's strategic objectives on time.

GGGI is currently using a system called 'IS', which consists of different independent

parts that do not operate cross functionally; therefore, the system lacks uniformity

in control over business process and integrated management of data. ERP is

expected to consolidate all core business processes into one database, thus

providing an improved business process management as well as enhanced data

integrity; both critical to achieving organizational efficiency and effectiveness.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Alignment with

Organizational

Strategy

According to GGGI's Strategic Plan of 2015 - 2020, GGGI is expected to ensure

organizational efficiencies, cost effectiveness, strategic staffing, and robust

management which drives improvements in organizations by cross-cutting

operations, and ERP is to take a part in the process.

GGGI will maximize efficiencies in information usage and communications

technology solutions in order to enhance business analytics, increase productivity,

reduce transaction costs, and enhance program and project support. The ERP system

will automate business modules in Finance, budget, procurement, grants and

projects, human resources, asset management, travel, and expense claims.

A o di g to GGGI s St ategi Pla of

-2020, GGGI selected organizational

efficiencies and cost effectiveness, strategic staffing and robust management which

creates conditions to drive change as the major processes of change. Seven tasks

were identified to accomplish the above major processes of change, including:

managing for results, ensuring sustainability, driving the global agenda, investing in

HR, strengthening the funding model, communicating for change, and measuring

success. ERP development is

pa t of the esult ased a age e t u de

a agi g fo esults

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Strategic Level - Theory of Change

GGGI Member countries move towards a model of

green growth that achieves poverty reduction, social

inclusion, environmental sustainability, and economic

growth simultaneously.

Efficiencies in organization, cost effectiveness,

strategic staffing, and robust management which

drives improvements in organizations

Cross-cutting priorities

1. Movement towards Implementation

2. Delivering More for Less

Impact

Process of

Change

Outcomes

Outputs

Professionalism of the organization ensured

Maximizing Institutional Effectiveness

Results Based Management (RBM)

Ensuring Sustainability

Driving the Global Agenda

Investing in our Human Resources

Strengthening our Funding Model

Communicating for Change

Measuring our Success

ERP Goals

Provide

a competitive advantage

for GGGI

Enable

timely access

to quality information

Enable GGGI to operate as an

integrated

entity

Improve job satisfaction

levels among the GGGI staff

A cost effective solution

to support GGGI operations

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Managing for

Results

GGGI s

efforts to improve institutional capacity in Results Based Management (RBM),

which provides a framework for strategic planning and management based on

learning and accountability, will continue. RBM will be applied across the

organization via articulation of SMART performance indicators, defined standards,

minimum quality criteria for projects, and strengthened quality management

processes at all stages of the project cycle. The M&E system will also be equipped to

collect and assess data and report on performance in achieving wanted results.

Fu the o e, GGGI s o ga izatio al goals ill e at hed ith

the goals of

individual staff as part of the corporate accountability framework, and risk

management practices will be institutionalized to recognize and address potential

obstacles in achieving corporate objectives. Lastly, methods to reduce the impact

and probability or to prevent the risks entirely will be established, along with a

contingency plan in case the risk should occur.

Implementation and rollout of the ERP system will maximize efficiency in the use of

information and communications technology, which will enhance business analytics,

productivity, transaction cost savings, and support in program and project. The ERP

system will also automate modules such as Finance, Budget, procurement, Grants

and Projects, Human Resources, Asset Management, Travel, and Expense Claims.

What is notable from the above figure is that GGGI has been introducing and

implementing a results-based management structure, and applying lessons learned

from achievements and challenges to date, as following the 2015-2020 strategic plan.

Furthermore, the learned-from-lesson principle will also be implemented into the

ERP system.

A o di g to GGGI s ERP status epo t, the ke data elationships

indicate that the

ERP system will function bi-directionally through all core steps, from donor profiling,

grants, and funds-in to decision making in top management level; refer the figures

below that illustrate the key data relationships and the implementation of learned-

from-lesson principle to ERP system.

According to COBIT-5 Process Assessment Model, an

o ga izatio s IT st ateg shall

satisfy the business requirement of sustaining or extending the business strategy

and governance requirements while being transparent about benefits, costs and

risks. To achieve this objective, certain practices such as the following are needed:

Link business goals to IT goals

Identify critical dependencies and current performance

Build an IT strategic plan and tactical plan

Practices

Link business goals to IT goals

Identify critical dependencies and

current performance

Build an IT strategic plan and tactical plan

GGGI’s

Status

Confirmed (link with 2015-20 strategy)

Confirmed (by work plan of 2015)

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Donor and Grant

Donor Management and

Funds-in agreement

Donor and fund data

Aggregate to

the Management

Corporate DG

Division

Drill

down

Dept./Region

Project

Unit/Country

Project-to-project vertical relationship

between GGP&I, KDM, PPC

All project related data

Partner and agreement data

Partner

Management

Agreement(MOU)

Non-funding & Funds-out

agreement

1. Top

Management

Planning

2. Operations

Management

Planning

Business and Operations Planning

Sufficient Resources?

Feedback

Master Schedule

Resource Planning

3. Operations

Management

Execution

Adequate Planning?

Feedback

Procurement, Staffing, Expense

Schedule Management (Project Mgt)

Performance and Budget Management

<Learned-from-lesson chain in ERP>

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Project

Management

1. Project Schedule

According to the Danish Appraisal Report released in April 2014, the ERP

development project was to be completed by the end of 2014. Therefore, the

original scope of Value for Money evaluation was to evaluate the completed and

operational ERP system.

However, although several parts of the HR module, Staff Record, Absence/Leaves,

Position Administration, Right to Work and Competency have been operational since

soft-launch in November 2014, other major modules of the ERP system are still to

be launched due to the revision of the work schedule.

Regarding the project schedule, GGGI confirmed that ERP Deployment Strategy is a

continuous roll-out approach of ERP modules. As shown in the schedule, the

majority of sub-modules are planned to be released in June, followed by a couple of

sub-modules in July and a couple of sub-modules in the future (to be planned out).

Continuous Process Improvement (introducing improvements to the ERP system) is

one of the key drivers to realize the ERP Goal of competitive advantage and cost

effective solutions to support GGGI operations.

<2015 ERP Development Schedule>

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Modules

(work-

streams)

Scope of Work and Update

•S heduled to elease e ai i g 8 pa ts;

Pay &

Reward/Compensation, Benefit Administration and

Performance Appraisal, Recruitment/Applicant Tracking,

New Starters, Probation, Leavers, Grievances,

Disciplinary and Training Administration

•8 pa ts o e ed at the e ui e e ts

gathering and

solution designs discussions; Fund Accounting, Journal

Posting Processes, Currency & Exchange Rates, Period

End Processes, Financial Reporting, Cashbook

Maintenance and Bank Reconciliation Process

• pa ts o e ed at the e ui e e ts gathe i g a d

solution designs discussions; Grant Budgets, Project

Budgets, Project Forecasts and Budget Reporting.

• pa ts o e ed at the e ui e e ts gathe i g a d

solution designs discussions; Maintain Suppliers,

Product Maintenance, Funds Checking and Commitment

Tracking, Requisition Processing, Purchase

Order/Contract Processing, Invoice Registration and

Payment Processing

•4

parts covered at the requirements gathering and

solution designs discussions; Maintain Partner and

Donors, Grant Maintenance, Project Maintenance,

Request for Funds and Donor Reporting.

•5

parts covered at the requirements gathering and

solution designs discussions; Fixed Asset Master File,

Acquisitions, Depreciation, Disposals/Adjustments,

Transfers and Re-classes and Warranty Expiration.

•3

parts covered at the requirements gathering and

solution designs discussions; Travel Request &

Advances, Making Expense Claims, Unused Travel

Advance Notifications and Travel Expense Reporting.

•Co ti uous oll out app oa h of

modules as per Project

Schedule.

•Fi a e Data –Opening

Balance of 2015, keeping

previous data in EMAX system

•Budget Data

-Approved Budget for 2015

•G a t/P oje t Data –Currently

open Grants and Projects

•Mig atio of

previous Data (2013-2014, Closed Projects,

etc.) will be revisited in Q1 2015.

•P oje t Cha ge Co t ol p o ess i pla ed to o e a

scope changes or additional services.

•T ai i g fo T ai e sessio s ill e o du ted.

Through

this training, the workstream Leads (Process Owners) will

have a better understanding on how the ERP system

works then Test Plan, Data Migration Plan and

Deployment Plan will be refined.

Status in

2014

Partially

launched

Finance

Budget

Procurement

Not

launched

(To-Be

launched in

2015)

Grants &

Projects

Asset MGT

T&E Claims

ERP

Deployment

Strategy

Data

Migration

Strategy

On-going

Change

Control &

Training

On-going

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Originally, the project was to be completed by the end of 2014; however, the

completion date was extended to June 2015. This is partly because the process of

developing the ERP followed a continuous roll-out approach, and during the process

the project faced resource constraints (especially manpower) before launching the

HR module in November 2014. Currently, GGGI is reviewing the work scope and

updates in the work scope have been reported through the ERP status report.

Regarding the resource constraints, GGGI confirmed that remaining resources focused

on the November 2014 launch and the rest of the modules were put on hold

temporarily. A re-planning of schedule and resources was conducted. In December, a

revised schedule was finalized and approved by the ERP Project Steering Committee.

It cannot be overlooked that even after the go-live of the newly developed ERP

system, there still exist plans to progressively implement other modules as a part of

the continuous roll-out approach and continuous process improvement. The

progress schedule is expected to allow the ERP system to maximize its utilization,

and therefore allow the ERP system to operate at maximum effectiveness and

efficiency.

According to COBIT-5, project management aims to satisfy the business requirement

of ensuring the delivery of project results within agreed-upon time frames, budget

and quality. Therefore, the required practices related to the project schedule are as

follows:

Establish and maintain an IT project monitoring, measurement and

management system

Build project charters, schedules, quality plans, budgets, and communication

and risk management plans

Assure the effective control of projects and project changes

Define and implement project assurance and review methods

Practices

Establish and maintain an IT project

monitoring, measurement and

management system

Build project charters, schedules, quality

plans, budgets, and communication and

risk management plans

Define and implement project assurance

and review methods

GGGI’s

Status

Confirmed (by project status report,

2014)

Confirmed (by project status report and

budget variance report, 2014)

Confirmed (by ERP Project Steering

ittee s e ie

2. Project Manager

GGGI Management changed the ERP Project Manager in response to his resignation.

Changing the project manager during such a project is uncommon and could be risky,

and GGGI confirmed that the Management Team made this decision to change

project manager change with enough consideration and mitigation of potential risk.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

(Currency: USD)

Mar

219,764

12,806

Jun

223,921

27,601

57,075

-11,724

72,952

Sep

123,921

-14,299

-26,489

-40,787

Dec

21,803

38,877

40,425

-4,016

75,285

1Q 2014

Budget

Total Expenses

Capitalized expenditure

Depreciation/Amortization

Total Expenditure

2Q 2014

Budget

a. Total Expenses

b. Capitalized expenditure

c. Depreciation/Amortization

Expenditure (a+b+c)

3Q 2014

Budget

a. Total Expenses

b. Capitalized expenditure

c. Depreciation/Amortization

Expenditure (a+b+c)

4Q 2014

Budget

a. Total Expenses

b. Capitalized expenditure

c. Depreciation/Amortization

Expenditure (a+b+c)

Total Budget

Total Expenditure

Disbursement Rate

Jan

19,764

13,886

Apr

123,921

22,965

365,000

-10,139

377,826

Jul

123,921

531,814

490,590

-11,724

1,010,680

Oct

123,921

35,256

156,400

-30,833

160,823

Feb

219,764

10,472

May

123,921

23,149

-10,139

13,010

Aug

223,921

-418,748

47,443

-40,116

-411,421

Nov

21,803

34,644

68,112

-33,087

69,668

1,570,345

1,365,200

86.9%

<2014 ERP Budget Variance>

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Budget

Management

4.39%

1.37%

0.11%

0.60%

3.22%

0.02%

6.03%

7.03%

0.56%

89.73%

Salary and Wages

Welfares

Travel expenses

Depreciation

Other expense

Allowances

Outsourcing cost

Commissions

Amotz. of intangible assets

Capitalized Expenditure

According to the ERP budget variance report 2014, GGGI originally estimated a

budget of USD 1,570,345 for the ERP development project. With the disbursement,

major expenditures of the ERP were capitalized according to IFS. In 2014, ERP

disbursement was USD 1,365.200.23 and the disbursement rate was 87%

accordingly. This has been separately monitored by the Finance Team and discussed

with the ERP Project Manager.

1. Amortization and Depreciation

The amortization and depreciation cost of purchased software and office-equipment

were capitalized first in accordance with IFRS requirements, and were

depreciated/amortized in compliance to the Financial Policy.

2. Salaries and Wages

Irregular patterns in salary expense - salary payment of USD 10,000 was being made

each month during the first half of 2014; however, the payment stopped in August.

GGGI Management decided to reallocate the salary in response to the evolving role

and responsibilities of the ERP Specialist to start covering the outgoing IT & Facilities

Manager.

3. Travel Expenses

Regarding travel expense, GGGI has spent USD 44,000 on travel expense for non-

GGGI staff members, contractors from a consulting firm that started work after

signing a contract, and field trips to HQ to conduct ERP Requirements Gathering &

Solution Design sessions. This was expensed in August, October and December,

however, invoices are for the period of 2014. The Project Manager took some time

to validate the invoices, and those invoices are accepted and posted after clearance.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

4. Equipment and Software Purchasing

According to the budget variance report, GGGI spent USD 727,937 on purchasing

software and USD 497,108 on purchasing office equipment, including a server

machine. It is noted that all purchased equipment and software are capitalized in

a o da e ith GGGI s fi a e poli .

(Currency: USD)

Asset

Software

Office equip.etc

Total

Amount

727,937.00

497,108.40

1,225,045.40

According to COBIT-5, project management aims to satisfy the business requirement

of ensuring the delivery of project results within agreed-upon time frames, budget

and quality. IT investment management aims to satisfy the business requirement of

continuously and demonstrably improving cost-efficiency and its contribution to

business profitability with integrated and standardized services that satisfy end-user

expectations. The required practices related to project budget management and

investment management are as follows:

Establish and maintain an IT project monitoring, measurement and

management system

Build project charters, schedules, quality plans, budgets, and communication

and risk management plans

Identify, communicate IT investment, cost and value to the business

Monitor IT investment, cost and value to the business

Practices

Establish and maintain an IT project

monitoring, measurement and

management system

Build project charters, schedules, quality

plans, budgets, and communication and

risk management plans

Identify, communicate IT investment,

cost and value to the business

Monitor IT investment, cost and value to

the business

GGGI’s

Status

Confirmed (by project status report and

budget variance report, 2014)

Confirmed (by budget variance report,

2014)

Confirmed (by reporting to ERP Project

Steering Committee and participation of

super-users, 2014)

Confirmed (by strategic goals and key

performance indicators related to the

project, 2015)

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Findings

The fi di gs o GGGI s ERP p oje t a e as

following: first, the extension of the project

schedule was due to a continuous roll-out approach; second, the project budget

variance of a disbursement rate averaging 87% and approximately 90% of total

expenditure consists of capitalized assets in accordance with IFS; and third, the risk

associated with the change of project manager due to resignation was mitigated

through consideration by

GGGI s a age e t.

Regarding overall project management, continuous review of project (ex. project

leader, estimated budget and available resources - including HR and Equipment,

purchasing plans for required resources, and overall development schedule) needs

to be assured during the planning phase in order to prevent risks of damaging the

economy, efficiency, and effectiveness of overall project.

When a change is made on the project plan, immediate follow up measures based

on analysis of potential risk should be implemented to increase the effectiveness.

Continuous assure that resources invested in the project are being managed in an

organized way. Resource management should include both HR management (such

as changing the project manager or team member) and asset management

(capitalization), and by doing so resource management will increase the overall

efficiency of the project.

Conclusion

According to the analysis of documents, interviews and evaluation based on the

international standard, COBIT-

, GGGI s ERP de elop e t p oje t has ee

meeting

the 3Es even if there has been minor issues such as a change to the roll-out approach

and project manager.

Specifically, GGGI has conducted a validation of system development and

outsourcing for economy, performed progress reporting and resource management,

include budget monitoring for efficiency, and conducted tests (user acceptance test,

cross-module test) and end-user training for effectiveness.

Regarding efficiency, although there has been issues such as project manager

change and system roll-out approach change, proper measures for managing

efficiency issues have been conducted. Therefore we conclude that overall efficiency

of ERP development has been improved.

As the system will go live in June 2015, it is expected that the ERP will contribute to

enhance the

Es of GGGI s ope atio s.

First, the system will provide a single source

for information and integrated information management in real time which will

e ha e effi ie

i GGGI s de isio

aki g. Se o d, the s ste is goi g to e

working as an integrated monitoring and reporting platform, thus enhancing the

management efficiency of each country program. Third, project achievements and

outputs will be updated in the ERP and the management can review and ensure the

effectiveness of project achievements and outputs in a more efficient way.

Recommendation

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

2. IT General

IT General

1. IT Governance

GGGI s IT is u de the a age e t of

the Corporate Services Unit. The Corporate

Services Unit manages not only IT, but also other corporate affairs such as

organizational events and travels.

Director General

Management & Administration

–

DDG M&A

Corporate Services

–

Head of Corporate Services

ICT

Infra Management

Data Management

Incident Management

Change Management

Service Request Mgt.

The ERP project team is in charge of the development process, and the ERP Project

Steering Committee oversees and makes decisions based on issues that arise. On

ERP implementation, ERP Project Team and the Business Process Group (BPG: in

charge of defining

a d efi i g GGGI s usi ess p o esses ha e so e

interconnected activities. Due to this connection, GGGI is expected to operate by

standardized processes defined by BPG; all data generated from activities going

through processes will be handled by and stored by ERP. In other words, improved

standardized processing and centralized management are expected to enhance

organizational efficiency and effectiveness simultaneously.

The General IT Policy is currently being revised, and it is expected that the finalized

version of the

Ge e al IT Poli is goi g to defi e all GGGI s IT affai s a d p o esses

in an integrated way.

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VI. Enterprise Resource Planning

Business Process Group

ERP Project Team

ERP Project Steering Committee

1. Manage the implementation of an

Enterprise Resource Planning (ERP) tool in

GGGI

2. Act as a Single Point of Contact for ERP

Vendor on GGGI Business Processes and

Requirements

3. Manage and track approved Changes

4. Coordinate End User Acceptance Testing and

Deployment

5. Coordinate Business Process & End User

Trainings

1. Defined or

refined

business

processes

2. Signed off

business

requirements

2. Overall IT Management

GGGI's IT team is managed by a centralized and structured plan called the CSU Work

Plan 2015. The work plan covers areas from strategic goals and key performance

indicators to weekly objectives of staff and responsibility assignment matrix. The

Head of Corporate Services has been able to manage all of GGGI's IT related activities

and inputs / outputs in a centralized way by managing the work plan. The strategic

goals and key performance indicators allow the head of corporate services to

monitor and set up directions towards achieving the goals. The responsibility

assignment matrix allows for efficient allocation of IT tasks and prevents

duplications in task execution. Staff schedule management enables monitoring of all

planned tasks, and therefore management can see in advance whether all planned

tasks will be completed in a timely manner, or inquire about the reasons if not.

3. Infra Management

ICT does not directly manage GGGI's IT infrastructure as it is outsourced. Rather,

ICT's primary role is to ensure the efficiency and effectiveness of IT infrastructure by

monitoring the performance of outsourcing contractors.

4. Outsourcing Management

GGGI has implemented multiple monitoring measures to ensure efficiency and

effectiveness in outsourcing. First, a monthly inspection report that reviews the

infrastructure management conducted by contractors is issued. Second, a weekly

helpdesk report and dashboard report that demonstrates how many service

requests are made and processed is issued.

5. Cyber Security

GGGI has implemented a proper level of IT security measures. For instance, it is

mandatory of

e e staff s pass o ds

to be changed

egula l , a d GGGI s et o k

infrastructure has implemented multi-level firewalls in order to block external

atta ks. Fi all , all e e ts that a ise i GGGI s s ste a d et o k a e e o ded a d

reviewed periodically.

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

According to COBIT-5, project management aims to satisfy the business requirement

of ensuring the delivery of project results within agreed-upon time frames, budget

and quality. IT investment management aims to satisfy the business requirement of

continuously and demonstrably improving cost-efficiency and its contribution to

business profitability with integrated and standardized services that satisfy end-user

expectations. The required practices related to project budget management and

investment management are as follows:,

Establish and implement IT roles and responsibilities, including supervision and

segregation of duties

Establish IT organizational structure, including committees

Design an IT process framework

Identify system and data owners

Establish and maintain an IT control environment and framework

Develop and maintain IT policies

Build and manage the quality plan for continuous improvement

Ensure system security

Maintain service desk for incident management

Acquire and maintain technology infrastructure

Practices

Establish and implement IT roles and

responsibilities, including supervision and

segregation of duties

Establish IT organizational structure,

including committees

Design an IT process framework

Identify system and data owners

Develop and maintain IT policies

Build and manage the quality plan for

continuous improvement

Ensure system security

Maintain service desk for incident

management

Acquire and maintain technology

infrastructure

GGGI’s

Status

Confirmed (by responsibility allocation

matrix)

Confirmed (No specific committee for

general IT affairs, but for ERP project and

Business Process Management)

Confirmed (By process management)

Confirmed (By defining owners of each

modules in the ERP system)

Confirmed (currently drafting the general

IT policies)

Confirmed (continuous roll-out approach

for ERP project and continuous process

improvement)

Confirmed (general IT policies and

internal procedures cover security

figures)

Confirmed (service desk and incident

management operational)

Confirmed (infrastructure outsourced)

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Findings

GGGI s ge e al IT a age e t is u e tl ei g e ha ed. GGGI s E aspe ts of IT

processes (composed of IT performance rate measurement, responsibility allocation

of IT manpower, monitoring expenditures on IT management, etc.) are reviewed by

the Head of Corporate services according to the COBIT-5 Process Assessment Model,

an international standard established for IT process assessment. The IT processes,

policies, procedures, and manuals are currently in a first draft phase of development;

an integrated IT package which includes all IT processes, policies, procedures, and

manuals will be provided through completion of the BPM project.

Regarding IT governance and overall IT management, currently drafting general IT

policy should cover all of GGGI

s IT p o esses a d a ti ities, a d the

Integrity of data

and efficiency of the ERP system should be ensured by integrated IT governance

framework and management. As new systems and modules are implemented, all

end users should be provided enough training in order to enhance overall IT

effectiveness.

As GGGI

s IT infrastructure is managed by contractors, GGGI needs to assure that

contractors are consistently performing as expected.

As the importance of cyber security continues to grow, GGGI should continuously

prepare and apply appropriate measures for cyber security.

Conclusion

According to the analysis and interviews, although it is still progressing, it is noted that

there have been attempts to enhance the

Es of GGGI s ge e

al IT management and

process. Specifically, GGGI has implemented and been operating necessity and cost

validation for infrastructure and outsourcing for economy, established work plan,

outsourcing management and automated controls through system for efficiency, and

monitoring performance indicators and setting up IT strategic goals for effectiveness.

Although some required processes such as a Business Continuity Plan and backup

policies have yet to be

i ple e ted, GGGI s

IT management and process match with

the required practices defined by the international standard, COBIT-5. In regard to the

atu it of IT p o ess, it is oted that GGGI s ge e al IT a age e t is u e tl at

the established level due to the fact that GGGI is a young organization; improvement

is still on-going. As the ERP and BPM are fully implemented, the maturity and capability

will be enhanced to a predictable and optimal level; in other words, the efficiency and

effectiveness of general IT management is going to be enhanced.

Recommendation

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VI. Enterprise Resource Planning

Level

Maturity/

Capability

Incomplete

Performed

Managed

Description

Not implemented or little/no evidence of any systematic

achievement of the process purpose

Achieves its process purpose

Implemented in a managed fashion (planned, monitored

and adjusted) with appropriately established, controlled

and maintained work products

Implemented using a defined process that is capable of

achieving its process outcomes

Operates within defined limits to achieve its process

outcomes

Continuously improved to meet relevant current and

projected enterprise goals

GGGI’s

Status

Achieved

Established

Predictable

Optimizing

Expected to

achieve

(by ERP and

BPM)

<GGGI

s Ge e al IT Ma age e t Capa ilit Le el>

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VII. Conclusion

VII.

Conclusion

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

VII. Conclusion

GGGI is a relatively new international organization, gaining its status as an international organization only in

October 2012. Therefore, it is natural that GGGI has room for improvements and that deficiencies may be

interpreted as risk. However, from a different perspective it is also an opportunity to build a strong and sound

organization and promote a sustainable green growth development model.

The overall evaluation result of the Value for Money in GGGI for the period of 2013 and 2014 is partially

satisfactory.

Although the internal management, institutional systems, policies, and procedures are well designed to

a hie e the o ga izatio s o je ti e, the s ste s a d sta da ds a e ot full i ple e ted i p a ti e. Fo

example, monitoring for program/project management and cross checking between processes need to be

strengthened to increase efficiency and effectiveness and enhance transparency of Business Management.

However, we also observed process owners contributing considerable effort to introduce and enhance the

appropriate business practice to GGGI by providing guidance and training to end users. Therefore, although it

is too early to conclude that the practice is fully implemented, it is possible that the Operations Management

will be operating efficiently and effectively in the near future.

In each chapter, we noted findings, exceptions, and recommendations for the exceptions. However, some of

the recommendations are already in the process of being implemented. This is because previously issued GGGI

appraisals and evaluation reports mention that GGGI lacks internal control structures such as relevant policies

and procedures. GGGI has implemented necessary revisions to follow up on the comments made in the past.

Our project evaluation scope covered the period from year 2013 to 2014; therefore, the improvements

currently being implemented or the improvements implemented by GGGI that became effective since 2015

are not well reflected in this report. However, we have observed the improvements and efforts made by GGGI.

GGGI is an evolving organization, learning from its past errors and actively developing its operations. GGGI has

e ol ed da

da to a hie e its isio of A esilie t o ld of st o g, i lusi e, a d sustai a le g o th .

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Appendix 1. List of Document Requested

Appendix

1. List of Document Requested

1. Entity level

Category

Task in

ToR

Document

Policy documents in the public domain

Approved Delegation of Authority (updated version)

(Final Report) Appraisal

–

2014 Danish Appraisal of GGGI (Mongolia

and Rwanda)

Entity level

A~I

GGGI appraisal master with GGGI Comments 23042014

Travel and Travel Expenses Policy

Risk & Mitigation Matrix in QIR

GGGI Business Process Management Update 20150213.pdf

Access to Process-Asset Library*

2. Strategic&Planning

Category

Task in

ToR

Document

Mongolia & Rwanda

Strategies

Planning

C, D, E, G,

8.a. MPSC.1.7.Annex1. Country planning framework

Annex 1_Planning Directions and Budgeting Framework 2015-2016

Annex 3-Work Program and Budget Forms

GGGI strategic plan 2015_final_web1

Document(s) that was used for council approval for the year 2013-2014

Budget re-evaluation document for the year 2013-2014

Mongolia

Outcome of the project (if any) for the year 2013-2014

Rwanda

GGGI strategic plan for FY' 2013 - 2014

Final Draft PP1-B-F2 - Detailed project proposal_Rwanda_May

16_UPDATED VERSION

3. Outcome of the project (if any) for the year 2013-2014

Component 1 Report and Appendix

Component 2 Report and Appendix

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Appendix 1. List of Document Requested

3. Project

Category

Task in

ToR

Document

Mongolia & Rwanda

QPRs 2013-14

Internal evaluation performance sheet 30092014

Mongolia

C, E, G, I

Rwanda

Rwanda 2015-16 Logframe

Rwanda QIRs 2013-14

MOU (Rwanda)- Hard copy

Documents that show all the projects that are conducted in Rwanda

Logical framework related to the year 2013-2014

Energy Status of Rwanda & Strategy for Green Growth

National Territorial Vision & Strategy for Green Growth in Rwanda

Resource Efficient Housing-Rwnda-RHA

Rwanda_Housing_Final-Construction Material

Rwanda_PPR_Aug_Master Document_final

Mongolia 2015-16 Logframe

Mongolia QIRs 2013-14

MOU (Mongolia) - Hard copy

Detailed project proposal_Mongolia 2014

Procurement plan_Mongolia 2014

GGGI MONGOLIA PORTFOLIO (updated Aug 2013)

COUNTRY STRATEGY 2014-2016 (Mongolia)

Project

Mgmt

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Appendix 1. List of Document Requested

4. Finance

Category

Task in ToR

Document

General ledger only related to Mongo & Rwanda Project code in the

period for 2013 and 2014

Monthly budget variance report for Mongolia project & Rwanda

project & IT(ERP related) for

2014

Travel reports 2013,2014(Mongolia, Rwanda)

Written approval(Official travel request) of travels in the attached file

Relevant supporting document for travel expenses(Receipt/Invoice)

Finance

Mgmt

A ~ E, G, H

5. Procurement

Category

Task in ToR

Document

Procurement list for 2013~14(Mongolia, Rwanda)

Annual procurement plans for 2013~14(HQ, Rwanda)

PAI-2014-358 / Country Representative

–

Mongolia

PO-2014-103 / Interpretation and facilitation services for workshop

–

Mongolia

A ~ E, G, H

DP-2014-557 / GDRP Mongolia

PH-2014-010 / Developing Rwandan Secondary Cities as Model Green

Growth Cities with Green Economic Opportunities

LE-2013-045 / EAC scoping project consultant

–

Rwanda

DP-2013-046 / Rwanda Program Consultant

Procurement

Mgmt

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Appendix 1. List of Document Requested

6. Human Resource

Category

Task in ToR

Document

Divisions/departments headcounts

Job Descriptions Template Performance Rating

Specific definitions of tasks and activities in GGGI's Job Profile or Job

Descriptions

Standardized time per each task and activity

Workforce demand driver per each department and function

Timesheets and analysis data of human resource and time Input for

output of each function

Human resource productivity index of each department

Panel Recommendation

Procedures and guidelines established by Director General for staff

performance evaluation

Plans for training sessions_2013, 2014

Documented Segregation of Duties_2013, 2014

Payroll Diagram(to be requested by Gazal)

HR Mgmt

D,E,F,G, H

7. IT

Category

Task in ToR

Document

Components of IT System & Architecture

General IT Policy Draft 20130915

ERP Status reporting

IT system(include both IS and ERP) performance indicators and

performance reports for 2013~14

Evaluation criteria for system performance or list of Key Performance

Indicators

IT Mgmt

A, C ~ E, G, H

Control checklist(user checklists)

IT Strategy map for 2013~14

IS and ERP system structure chart

ERP system education materials for Champions

Rules/procedures for managing outsourcing service provider(for internal

control purposes)

System module guidelines(procurement, finance, HR etc.)

CSU Work Plan 2015

URU, Alm.del - 2014-15 (2. samling) - Bilag 5: Value-for-Money studie om Global Green Growth Institute (GGGI), fra udenrigsministeren

Appendix 2. Interviews

2. Interviews

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Appendix 3. Simplified Process Maps

3. Simplified Process Maps

Definitions

Symbol

Name

Terminator

Description

Indicates the beginning or end of a

process flow

Process

Indicates any processing function

Decision

Indicates a decision point between

two or more paths in a flowchart

Can represent any type of data in a

flowchart

Indicates data that can be read by

people, such as printed output

Data

Document

Connector

Indicates an inspection point

Indicates a list of information with a

standard structure that allows for

searching and sorting

Database

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Appendix 3. Simplified Process Maps

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Appendix 3. Simplified Process Maps

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Appendix 3. Simplified Process Maps

Kim, You Kyoung(Kate), Partner, KPMG Risk Consulting Service

Tel 02-2112-0639

Mobile 010-9081-1079

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