APPENDIX E

THE IMMEDIATE PLAN OF ACTION FOR FAO RENEWAL

A. Priorities and Programmes of the Organization

Summary Elements of the Strategic Framework and Medium Term Plan[13]

1) In order to focus FAO’s work to better serve Members’ needs, the Conference approves FAO’s Vision and Global Goals (Box 1) for inclusion in the new Strategic Framework. It also approves the application of the new Results-Based programming framework as described below. The following elements of the Strategic Framework and Medium Term Plan as described below are also approved in principle, i.e. the: Strategic Objectives; Core Functions; Functional Objectives; and the format for presentation of the results-based programme documentation. The concept of Impact Focus Areas (IFAs) is approved and indicative listing of IFAs is agreed as a basis for further elaboration. This total results-based package will provide the basis for the further elaboration of the Results-Based Programme in full, including Organizational Results and indicators for inclusion in the 2010-13 Medium Term Plan. Provision for this development has been included in the Committee’s proposals on institutional and governance arrangements for follow-up in 2009 where one Working Group of the new Conference Committee will be devoted to the task of developing the full proposal of a new Strategic Framework and Medium Term Plan for the 2009 Conference. The elements presented in this summary are further elaborated, particularly as regards possible results and indicators, in a FAO Management paper provided as Annex 1 to the CoC-IEE report.

2) Changes in the Programme and Budget preparation process and governance input and oversight arrangements are addressed in Section C of the Immediate Plan of Action: Reform of Programming, Budgeting and Results-Based Monitoring.

Introduction of a Results-based Framework for all FAO’s Work

3) The elements of the new Strategic Framework and Medium Term Plan will be based on an integrated results-based structure. It will provide a strong basis for “Reform with Growth”, prioritising and focusing work in line with Members’ needs, clarifying the means-ends relationships through which FAO will contribute to agreed impacts in, and for, member countries. The Medium Term Plan will clearly present this and will provide the framework within which FAO shifts the Organization’s focus from what it intends to do with assessed contributions to what it intends to achieve through the application of assessed contributions and extra-budgetary resources. The enhanced results-based approach to programming consists of a hierarchy of:

a) Three Global Goals: These represent the fundamental development impacts in the areas of FAO’s mandate which the member countries aim to achieve (see Box 1);

b) Strategic Objectives: These contribute to the Global Goals and express the impact, in countries, regions and globally, expected to be achieved in a ten-year time horizon by Members with a contribution from FAO (see Box 2);

c) Organizational Results: These define the outcome expected from the use by member countries and partners of FAO’s products and services in the pursuit of each Strategic Objective; and

d) Core Functions: These represent the critical means of action to be employed by FAO to achieve results, drawing on the Organization’s comparative advantages.

Box 1:

FAO’s Vision and Global Goals: FAO’s vision is of a world free of hunger and malnutrition where food and agriculture[14] contributes to improving the living standards of all, especially the poorest, in an economically, socially and environmentally sustainable manner. To foster the achievement of this vision and of the Millennium Development Goals, FAO will promote the continuing contribution of food and sustainable agriculture to the attainment of three global goals:

o reduction of the absolute number of people suffering from hunger, progressively ensuring a world in which all people at all times have sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life;

o elimination of poverty and the driving forward of economic and social progress for all with increased food production, enhanced rural development and sustainable livelihoods;

o sustainable management and utilization of natural resources, including land, water, air, climate and genetic resources, for the benefit of present and future generations.

FAO’s Strategic Objectives:

o Sustainable intensification of crop production;

o Increased sustainable livestock production;

o Sustainable management and use of fisheries and aquaculture resources;

o Sustainable management of forests and trees;

o Sustainable management of land, water and genetic resources and improved responses to global environmental challenges affecting food and agriculture;

o Improved quality and safety of foods at all stages of the food chain;

o Enabling environment for markets to improve livelihoods;

o Improved food security and better nutrition;

o Improved preparedness for, and effective response to, food and agricultural threats and emergencies;

o Gender equity in access to resources, goods, services and decision-making in rural areas;

o Increased and more effective public and private investment in agriculture and rural development.

4) Targets and indicators to permit assessment of progress are being defined for Organizational Results with the aim of putting them in place from 2010-11. To support their application a results-based monitoring system will be established and the monitoring of indicators for Organizational Results will provide the basis for a biennial report to the membership in 2012 on the Organization’s performance in 2010-11. The same system and data will also facilitate impact assessment at the level of objectives through evaluation. This major innovation in the way in which FAO plans, implements and assesses its work will feed back into management decision-making and facilitate Governing Body oversight, both of the use of all resources in line with agreed priorities and of their effectiveness in terms of benefits to individual member countries and the global community.

5) The Programme of Work will thus be presented in an integrated suite of planning documentation encompassing: the Strategic Framework with a 10-15 year time-horizon (reviewed every four years); the Medium Term Plan presenting the Organizational Results, covering a four-year time horizon, but reviewed and adjusted each biennium; and the Programme of Work and Budget dealing with the resources required to contribute to the Organizational Results each biennium (see Section C of the IPA).

Organizational Results

6) Progress in defining Organizational Results: Organizational Results combine the outcomes of FAO actions at country, regional and global levels. Significant progress has been made in defining both the Results and their targets and indicators (see FAO Management paper in Annex 1 to the Conference Committee Report). This work will be completed for final consideration by the Conference in 2009 of the Strategic Framework, Medium Term Plan 2010-2013 and Programme of Work and Budget 2010-11.

7) It is at the Results level that the major outcomes of FAO’s work are elaborated in such major areas as the “Right to Food”, and the related issues of an enabling environment for increased food production and access to that food of those who most need it. This includes the support to the development of the essential policy frameworks and national institutional capacities. It is also at this level that specificity is given to FAO’s work on such important regulatory areas as food safety. The approach to the further elaboration of results for cross-cutting strategic objectives in work such as gender, investment and natural resources will help to ensure that they are largely defined in the context of work within the remaining Strategic Objectives of a more sectoral nature. This will help integrate attention to and mainstream these important areas of work.

8) The achievement of Organizational Results will integrate outcomes from the application of both assessed contributions and extra-budgetary resources. Targets and indicators for Results will thus be designed both to verify outcomes from the application of assessed contributions and to take into consideration the extent to which Results are achieved as voluntary contributions become available in addition to the assessed budget.

9) Format for Presentation of Strategic Objectives and their Organizational Results in the Medium Term Plan: A format has been developed for the presentation of Organizational Results which is used in part in the FAO Management paper in Annex 1 to the Conference Committee Report and is endorsed in principle for application in the development of the Medium Term Plan. It is summarised in Box 2.

Box 2: Format for Presentation of Strategic Objectives and their Organizational Results
Strategic Objective Title:
Issues and Challenges:
Assumptions and Risks:
Organizational Results
Result 1 Title
Primary Tools for achievement of the Result	Targets and Indicators
Result 2 Title
Primary Tools for achievement of the Result	Targets and Indicators
Result 3 Title
Primary Tools for achievement of the Result	Targets and Indicators
etc for each Organizational Result
Check list of application of the Organization’s Core functions to achievement of the Strategic Objective
Strategic Objective Budget broken down by Organizational Result (and by: assessed contributions and extra-budgetary resources; and by region)

10) Prioritizing and Focusing Work: Prioritisation and focusing of FAO’s work is essential at all levels of the Results-Based Framework and is particularly critical at the level of Organizational Results to achieve greater efficiency and effective delivery of services to Members and other stakeholders. FAO must respect its responsibility to promote action on all aspects of the mandate and resources must be allocated for Organizational Results that clearly contribute to the achievement of the Strategic Objectives. Within this context absolute priority needs to be accorded to Members’ existing needs and meeting emerging challenges.

11) In further developing the priorities for the Medium Term Plan and Programme of Work and Budget during 2009 the planned Conference Committee will work closely with management in undertaking an analysis of Members’ needs. This will be combined with a structured analysis of the potential for application of the Organization’s strengths, as embodied in the Core Functions (see Box 4) and which include such considerations as: organizational performance in each area of work; existing technical capacity, including for cross-disciplinarity; and the integration of strengths in advocacy, normative work and technical cooperation. This analysis will recognise that there are areas of need where FAO will need to strengthen its capacity to provide services, while also recognising that considering the breadth of FAO’s mandate and the limitations on resources, the availability to member countries of alternative sources of supply for the service or product and FAO’s comparative strengths will be important considerations. The avoidance of duplication and working in partnership will be essential, in particular with other organizations in the UN system, but also with non-UN entities, both public and private.

12) Guiding principles applied in reformulating FAO programmes, with this in mind, will be to:

a) support countries in developing their policies and building their capacities for action in areas that can stimulate sustainable development of food production, food security and pro-poor economic growth;

b) foster progress in the global and regional conditions for development through policy and regulatory coherence and the availability of information to underpin national development; and

c) assist the global community and individual member countries in addressing emerging issues, such as those of climate change and high food prices.

13) Members will thus require evidence that Organizational Results have been formulated taking full account of these considerations, and both the results-based monitoring system and evaluation will help to assure this. Other major tools which will inform the development of the Organizational Results and Strategic Objectives include:

a) National Medium-Term Priority Frameworks developed with individual governments to focus FAO’s efforts on national needs;

b) structured and consultative development of sub-regional and regional areas of priority action, including the Regional Conferences in the consultation; and

c) at the global level, a limited number of Impact Focus Areas (see below).

14) Impact Focus Areas contribute to Strategic Objectives and their agreed Organizational Results, providing a focus within or across them. They will:

a) help mobilise resources for priority groups of results which could benefit from additional funding, acting as “flagships”, providing a communication and advocacy tool to better attract voluntary extra-budgetary resources and partnerships to supplement assessed contributions;

b) progressively enable pooled, and less rigidly tied, funding of voluntary extra-budgetary contributions;

c) primarily address issues of priority to developing countries with emphasis on capacity building and getting policy frameworks right; and

d) facilitate Governing Body oversight of the use of extra-budgetary resources in line with agreed priorities.

15) They have an initial duration of some four years and may be extended as necessary. They will be underpinned by a strategy and indicators of outcomes. Review will take place each biennium as part of the Medium Term planning process and Impact Focus Areas may be discontinued, adjusted or added to in line with emerging needs and results.

Box 3: Indicative initial listing of Impact Focus Areas

o Action towards global food security in the context of the current food crisis and climate change : Build longer-term resilience and contribute to global food security through short, medium and long term action under the UN System Comprehensive Framework of Action on the Global Food Crisis by supporting sustainable growth in food production in developing countries, especially among smallholder farmers, including through the Initiative on Soaring Food Prices (immediate needs) and support to National and Regional Programmes for Food Security.

o Prevention and reduction of the negative effects of transboundary animal and plant pest and food safety incidences (negative economic, social and health impacts).

o Strengthening the information base for sustainable forest management: Building countries’ capacities to manage forests and trees based on timely and reliable information.

o Implementation of the Code of Conduct for Responsible Fisheries (FishCode - Global Partnerships for Responsible Fisheries) to help ensure sustainable fisheries and aquaculture as integral components of food production and resource management systems at national, regional and global levels, in particular through capacity building.

o Coping with scarcity of land and water resources: Increasing capacities to achieve improved governance, access to and management of land and water resources, including the implications of climate change, with a special emphasis on Africa.

o Information and statistics: Strengthening national, regional and global capacities to generate reliable information and statistics to improve national and global decision making in agriculture and the fight against hunger.

o Standard setting and regulation: Strengthened national and global capacities for the development and implementation of regulations and standards with particular attention to the capacities and participation of developing countries (plant protection, food safety, genetic resources).

Core Functions

16) Eight core functions of FAO define the means of action and the important modalities to achieve results drawing on the Organization’s comparative advantages. Each core function is underpinned by a strategy which will help to ensure coherent approaches, cooperation among organizational units, mutual learning and the pursuit of excellence.

Box 4: The Core Functions of FAO

o Providing long-term perspectives and leadership in monitoring and assessing trends in food security and agriculture, fisheries and forestry;

o Stimulating the generation, dissemination and application of information and knowledge, including statistics;

o Negotiating international instruments, setting norms, standards and voluntary guidelines, supporting the development of national legal instruments and promoting their implementation;

o Articulating policy and strategy options and advice;

o Providing technical support to:

· promote technology transfer,

· catalyse change,

· build capacity, particularly for rural institutions,

o Undertaking advocacy and communication, to mobilize political will and promote global recognition of required actions in areas of FAO’s mandate;

o Bringing integrated interdisciplinary and innovative approaches to bear on the Organization’s technical work and support services;

o Working through strong partnerships and alliances where joint action is needed.

Functional Objectives

17) To ensure that all aspects of the Organization’s work are established in a results-based framework, including its administration and processes, two Functional Objectives have been defined:

a) Effective collaboration with Member States and stakeholders (partnership and communication); and

b) Efficient and effective administration.

18) These will also have targets and indicators for their results and assist the Organization to continuously improve not only the relevance and impact of its technical delivery, but also its efficiency and contribution to the achievement of Strategic Objectives.

Management responsibilities

19) Clear managerial responsibilities throughout the cycle of preparation, implementation and assessment, will be assigned for each Strategic Objective, Organizational Result, Impact Focus Area, Core Function and Functional Objective. Managers will be held accountable for the progress not only in terms of provision of products and services but also the results these achieve.

FAO Strategic Objectives and the New Results-Based Framework – Action Matrix

Actions			Responsibility For Final Decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per Biennium
1.1	7.5	Decide the application of the new Results-Based Framework	Conference	2008	(See WG III – HR training)	(See WG III – HR training)
1.2	7.1	Decide the Vision and Global Goals of FAO	Conference	2008	0	0
1.3	7.1	Decide in principle the Strategic Objectives, Functional Objectives and Core Functions	Conference	2008	0	0
1.4	7.1	Adopt in principle the format for presentation of Strategic Objectives and Organizational Results	Conference 2008	2008	0	0
1.5	7.2	Develop Impact Focus Areas with the purposes summarised and with a basis for further development provided by the indicative listing	Conference 2008	2008-2009	0	0
1.6	7.5	Develop the results-based monitoring system	Management	2009	(See Section C - Reform of Prog, Bud and RBM; Res Mob Strat)	(See Section C - Reform of Prog, Bud and RBM; Res Mob Strat)
1.7	7.1	Develop and adopt the complete Strategic Framework, Medium Term Plan and Programme of Work and Budget applying the new model	Conference Committee/ Council/ Conference	2009	ditto above	ditto above
1.8	7.5	First report on organizational performance based on new results-based system for 2010-11 biennium	Council/ Conference	2012	ditto above	ditto above

B. Governance Reform

Governing Bodies

Governance Priorities

20) There are two major and distinct functions of the FAO Governing Bodies[15]:

a) the review of the world food and agriculture situation and the pursuit of global and regional policy coherence between governments on major international issues for food and agriculture, including their national implications, and the design or adjustment of international instruments, including treaties, conventions and regulations; and

b) the executive policy decision making and oversight for FAO as an Organization, including its programme and budget.

Governance Priorities - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.1	4.4 & 4.5	Global policy coherence and regulatory frameworks: Systematically review the global situation to determine those issues requiring priority initiative for greater policy coherence and study current regulatory frameworks to determine areas requiring early action by FAO or in other fora.	Conference Technical Committees Regional Conferences Management	2009 - continuing	0	0 (RP priority)
2.2		As appropriate take into consideration policy issues and instruments relating to food and agriculture being developed in other fora than FAO and provide recommendations to those fora	Conference Technical Committees Regional Conferences Management	2010-11 biennium continuing	0	0 (RP priority)
2.3		See also below – for roles of the various Governing Bodies	Governing Bodies	(see below – with respect to each Governing Body)
2.4		Executive governance: Strengthen roles and coverage of Governing Bodies (see below)	Governing Bodies	(see below – with respect to each Governing Body)

FAO Conference, Council & the Programme & Finance Committees

21) The FAO Conference: The Conference will remain the ultimate decision making body of the Organization and determine overall policy and strategy. Its distinctive functions will be further emphasised, reducing duplicative discussion with the Council. A series of measures were agreed to make the Conference more action orientated, focused and attractive to participation by Ministers and senior officials. The Conference will:

a) be the ultimate venue for discussion and decision on global issues of food and agriculture and requirements for regulatory instruments, normally following their discussion in, and the receipt of recommendations from, the Technical Committees and the Regional Conferences;

b) make the final decision on the objectives, strategy and budget of the Organization following receipt of recommendations from the Council (see below Programming and Budgeting Process).

The Conference – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.5	4.7a	Each session of the Conference will usually have one major theme agreed by the Conference, normally on the recommendation of the Council	Conference/ Council	2009 - continuing	0	0
2.6	4.7a	Conference will give more attention to global policy issues and international frameworks (including treaties, conventions and regulations), normally acting on recommendations of the Technical Committees & Regional Conferences and where appropriate, Council (it will receive directly the pertinent sections of Technical Committee and Regional Conference reports)	Conference	2009 - continuing	0	see 2.12
2.7	4.7c & 7.3	Conference will meet in June of the second year of the biennium	Conference	2011 - continuing	0	0
2.8	4.7c	Conference will approve the Organization’s Priorities, Strategy and Budget having considered the recommendations of the Council (see Programme and Budget Procedure below)	Conference	2009 - continuing	0	0
2.9	4.15c	The Conference report will concentrate on conclusions and decisions, which may be defined in drafting committees and “friends of the Chair” as appropriate. The verbatim will provide the detail of interventions and will be published in all FAO languages.	Conference	2009 - continuing	0	see 2.12
2.10	4.7a	Formal plenary meetings will become more focused on issues of vital interest to members	Conference	2009- continuing	0	0
2.11		Side events will be developed to provide a forum for informal interchange on development of issues		2009 - continuing	0	0
2.12	4.15	Changes in practice will be introduced, including ways of working and reporting lines as detailed below with respect to the various Bodies	Conference	2008 - continuing	0	0.4
2.13	4.15	Basic Text changes for functions, reporting lines, role in making recommendations to the Conference, etc. as detailed in the Action Matrix	Conference	2009	0	0

22) The FAO Council: The executive governance role of the Council will be further developed with attention to making clear decisions. It will meet more flexibly and for variable lengths of session as appropriate to the agenda. It will play a more dynamic role in the development of the programme and budget, drawing on the advice of the Programme and Finance Committees and it will extend its oversight and monitoring function particularly with regard to extra-budgetary resource mobilization and use and human resource development and utilization.

The Council – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref IEE Rec	Action			Investment	Recurrent per biennium
	4.8	The Council functions will be clarified as necessary in the Basic Texts and will include:	Conference	Decision 2008	0	0
2.14		i) the major role in deciding and advising on: · work-planning and performance measures for the Council itself and for other Governing Bodies excluding the Conference; · monitoring and reporting performance against these measures; · strategy, priorities and budget of the Organization; · the overall programme of work; · major organizational changes, not requiring Conference changes of Basic Texts; · recommending the agenda of the Conference to the Conference;		Implementation 2009 onwards
2.15		ii) monitor the implementation of governance decisions;
2.16		iii) exercise oversight, ensuring that: · the Organization operates within its financial and legal framework; · there is transparent, independent and professional audit and ethics oversight; · there is transparent, professional and independent evaluation of the Organization’s performance in contributing to its planned outcomes and impacts; · there are functioning results-based budgeting and management systems; · policies and systems for human resources, information and communication technology, contracting and purchasing, etc are functional and fit for purpose; · extra-budgetary resources are effectively contributing to the Organization’s priority goals; and
2.17		iv) monitor the performance of management against established performance targets.
2.18		The Council shall make a clear recommendation to Conference on the Programme and Budget Resolution including the budget level	Council	2009 -continuing	0	0
2.19	4.8	The Council will meet more flexibly and for variable lengths of session as appropriate to the agenda (normally a minimum of 5 sessions per biennium) - Section C Chart 1 Programme and Budget planning and review cycle:	Council	2010 - continuing	0	1.4
2.20		i) There will be: a short meeting (minimum two days) after each session of the Programme and Finance Committees.
2.21		ii) The meeting of the Council to prepare the Conference will be at least two months prior to the Conference, so that recommendations can be taken account of, including recommending the final agenda of the Conference to the Conference for its final approval.
2.22		The Council Report will consist of conclusions, decisions and recommendations (verbatim to provide detail and be published in all languages)	Council	2009 - continuing	0	1.7
2.23	4.8	The Council will no longer discuss global policy and regulatory issues, unless there is an urgent reason to do so (to be handled by the Technical Committees and the Conference)	Conference	2009 - continuing	0	0
2.24	4.15	Changes of practice, including ways of working and reporting lines will be introduced for the Council (see below with reference to other bodies)	Conference/ Council	2009 onwards	0	0
2.25	4.15	Introduce Basic Text changes for functions, reporting lines, etc.	Conference	2009	0	0

The Independent Chairperson of the Council

23) The Independent Chairperson of the Council will play an enhanced facilitation role in further empowerment of the Council to better play its role in governance and oversight. These functions of the Independent Chairperson will be specified in the Basic Texts and will include active consultation with regional groups in preparation for Council sessions.

Independent Chairperson of the Council - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.26	4.10a	Revise Basic Texts to clearly specify the proactive facilitation role of the Independent Chairperson of the Council for the Governance of FAO, eliminating any potential for conflict of roles with the managerial role of the Director-General and, including, in addition to chairing meetings of the Council:	Conference Committee/ CCLM/ Conference	2009	0	0
2.27		a) serve as an honest broker in arriving at consensus between members on controversial issues;
2.28		b) liaise with the Chairs of the Programme and Finance Committees and CCLM on their work programmes and as appropriate with the chairs of Technical Committees and Regional Conferences, normally attending the Programme and Finance Committees and Regional Conferences;
2.29		c) as and when he/she considers it useful, the Independent Chairperson of the Council may call for consultative meetings with representatives of the Regional Groups on issues of an administrative and organizational nature for the preparation and conduct of a session;
2.30		d) liaise with FAO senior management on concerns of the membership, expressed through the Council and its Programme and Finance Committees and the Regional Conferences;
2.31		e) ensure that the Council is kept abreast of developments in other fora of importance for FAO’s mandate and that dialogue is maintained with other Governing Bodies as appropriate, in particular the Governing Bodies of the Rome based food and agriculture agencies;
2.32		f) drive forward the continuous improvement of the efficiency, effectiveness and Member ownership of FAO Governance.
2.33		g) The Basic Texts will also specify:
2.34		i) desirable qualifications (competencies) for the Independent Chairperson to be developed by the Conference Committee with advice of the CCLM and decided by the 2009 Conference ii) that the Independent Chairperson is required to be present in Rome for all sessions of the Council and will normally be expected to spend at least six to eight months of the year in Rome

24) The Programme and Finance Committees will strengthen their advice to the Council and become more transparent. They and the Council will assume more responsibility for agendas. The Committees will meet more flexibly and for variable lengths of session and in increased Joint Sessions as appropriate to the agenda and in line with the programme and budget planning and review cycle (see Section C Chart 1). They will be required to make clear recommendations and give more attention to policies, strategies and priorities in order to provide improved oversight and more dynamic guidance to the Council.

Programme and Finance Committees – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref IEE Rec	Action			Investment	Recurrent per biennium
2.35	4.9 & 4.17	Clarifications of functions and ways of working will be introduced immediately in practice and followed-up by Basic Text changes, including on clarification of functions:	Conference	2009 –continuing	0	0
2.36		i) Programme Committee functions will emphasise programme priorities, strategy, budget and evaluation and will also include: consideration of field and decentralized work; priorities for the Organization to address in developing global policy coherence and regulation; and partnership and coordination with other organizations for technical work;
2.37		ii) Finance Committee will cover all aspects of administration, services and human resources as well as finance, including the policies and budget for these areas of work – becoming a Finance and Administration Committee;
2.38		iii) The Committees will meet more flexibly and for variable lengths of session as appropriate to the agenda and in line with the programme and budget planning and review cycle (see Chart 1) - (minimum number of sessions normally four per biennium);
2.39		iv) The two Committees will hold more joint meetings. The discussion will be in joint session, whenever there is overlap in the discussion, or the two Committees contribution will have a strong complementarity;
2.40		v) The Committees will be required to make clear recommendations and give more attention to policies, strategies and priorities in order to provide improved oversight and more dynamic guidance to the Council; and
2.41		vi) The Finance Committee will agree and adopt criteria for which WFP documentation it should review.
2.42	4.15	Introduce changes in practice, including ways of working (see below)	Conference/ Council	2009	0	0
2.43	4.15	Introduce Basic Text changes for functions of the Committees	Conference	2009-2011	0	0

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref IEE Rec	Action			Investment	Recurrent per biennium
2.44	4.9 & 4.17	Programme and Finance Committees membership, chairs and observers: - Changes will be introduced in the Basic Texts, including for the election of members. The members will be countries not individuals but in nominating their representatives countries will be expected to propose representatives with the necessary technical qualifications, and:	Conference/ Council	2009 - continuing	0	0.1
2.45		i) chairs will be elected by the Council on the basis of their individual qualifications and will not occupy seats of their electoral groups or represent a region or country (in the event of a chair falling vacant, the incumbent will be replaced by a vice-chair of the Committee elected by the Committee, until such time as a replacement can be elected by the Council);
2.46		ii) the membership of the Committees will each be increased, in addition to the Chair, to twelve representatives with each region having a right to up to two representatives each for Africa, Asia, Latin America and the Caribbean, the Near East and Europe and one representative each for North America and the South West Pacific nominated by the region and confirmed by the Council (countries may substitute their members for individual meetings or during the term of office, thus avoiding that a seat remains empty)
2.47		iii) Committees, including joint meetings will be open to non-speaking observers.			0	0

Committee on Constitutional and Legal Matters (CCLM)– Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref IEE Rec	Action			Investment	Recurrent per biennium
2.48		Changes will be introduced in the Basic Texts, including for the election of members. The members will be countries not individuals but in nominating their representatives countries will be expected to propose representatives with the necessary legal qualifications;	Conference/ Council	2009 - continuing	0	0
2.49		The chair will be elected from amongst the CCLM members by the Council on the basis of his/her individual merit (in the event of a chair falling vacant, the incumbent will be replaced by a vice-chair of the Committee elected by the Committee, until such time as a replacement can be elected by the Council);			0	0
2.50		The Committee will have seven members, with each region having a right to one member nominated by the region and confirmed by the Council (countries may substitute their members for individual meetings or during the term of office, thus avoiding that a seat remains empty)			0	0
2.51		The CCLM will be open to non-speaking observers	Council	2009 - continuing	0	0

Regional Conferences

25) Regional Conferences will have an important role to play in governance for: policy coherence for development in their region; discussion of global priorities as they relate to the region; providing inputs to the Council and Conference on FAO priorities and in discussing such issues as intra-regional trade and investment. This role may vary from region to region. They will become a full part of the governance structure, feeding into the Conference and Council.

Regional Conferences – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.52	4.13	Changes in lines of reporting, functions and ways of working will be introduced immediately in practice and followed-up by Basic Text changes, including changing the status of the Regional Conferences to Committees of the FAO Conference:	Conference	2008 - continuing	0	0.4[16]
2.53		a) Functions will include: i) Develop issues for regional policy coherence & regional perspective on global policy issues & regulation – presenting its report to the FAO Conference ii) Review and advise on the FAO programme for the region and the overall FAO programme as it affects the region – presenting its report to the Council through the Programme and Finance Committees			0	0
2.54		b) Ways of working – Regional Conferences will: i) be convened normally once in every biennium on the decision of the Members of FAO from the region and with full consultation among members on agendas, formats, dates & duration and need for the Conference; ii) appoint a rapporteur; iii) the Chair and rapporteur will remain in office between sessions and the Chair, or if not available the rapporteur, will present the Regional Conference report to the FAO Council and Conference (with consideration also by the Programme and Finance Committees as appropriate) in line with the new cycle of governing body oversight and decision making for the programme and budget process; iv) to the extent possible, hold sessions in tandem with other inter-governmental regional bodies concerned with agriculture; v) papers for Regional Conferences will be focused with actionable recommendations.			0	0
2.55		Introduce Basic Text changes for functions, reporting lines, etc.	Conference	2009	0	0

Technical Committees and Ministerial Meetings

26) Technical Committees: The Technical Committees are fundamental to FAO’s work. They are committees of the whole membership and have distinct roles: Firstly developing global information exchange, policy coherence and instruments for their area of competence; and secondly providing proposals to the Council and Conference on the Strategy and Programme of the Organization. Technical Committees, as committees of the whole, deal with world issues as well as FAO’s programme and will report directly to the FAO Conference on global issues and to the Council on FAO programme priorities and performance.

Technical Committees – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.56	4.11	The Committees will report to Council on FAO’s budget, and the priorities and strategies for the programmes and directly to the FAO Conference on global policy and regulation becoming Committees of the Conference, and:	Conference	2009 - continuing	0	0
2.57		a) Chairs will remain in office between sessions and provide their reports to the Council and Conference;
2.58		b) Ways of working –Technical Committees will: i) meet more flexibly as to duration and frequency, according to needs, normally once in each biennium. They will address priority emerging issues and may be convened especially for this purpose;
2.59		ii) the Chair will facilitate full consultation with Members, on agendas, formats and duration
2.60		iii) More use will be made of parallel sessions and side events, taking care that countries with small delegations can participate (informal sessions will include NGOs and the private sector including representation from developing countries);
2.61		iv) The Committee on Agriculture (COAG) will specifically include and devote adequate time in its agenda to livestock with a livestock segment;
2.62		v) The Committee on Commodity Problems (CCP) will strengthen interaction with UNCTAD, WTO and the Common Fund for Commodities;
2.63		vi) The Committee on World Food Security (CFS) will revitalise its role in monitoring and driving progress on the World Food Summit commitment and reviewing the State of Food Insecurity in the world.
2.64		Introduce changes in practice, including ways of working and reporting lines	Conference	2009	0	0
2.65		Introduce Basic Text changes for functions, reporting lines, etc.	Conference	2009 - continuing	0	0

27) Ministerial meetings may be convened by the Conference and Council when matters developed at technical level, normally in the Technical Committees, need political endorsement or more visibility. Their reports will normally be considered directly by the FAO Conference, with reference of any FAO programme issues for the advice of the Council.

Ministerial Meetings – Action Matrix

Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.66	4.12	Basic Text Change to specify that the Conference or Council may call a Ministerial meeting when matters developed at technical level need political endorsement or more visibility.	Conference/ Council	2009	0	0.1
2.67		The Ministerial meeting reports will normally be considered directly by the Conference.	Conference	2009 onwards	0	0

Statutory Bodies, Conventions, etc.

28) The statutory bodies and conventions will be strengthened, enjoying more financial and administrative authority within the framework of FAO and a greater degree of self-funding by their Members. They will have a direct line of access to the appropriate FAO Technical Committees. They will be accountable to the FAO Council and Conference for the use of that proportion of their funding which is provided for from FAO assessed contributions.

Statutory Bodies, Conventions, Treaties, Codex, etc. – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.68	4.11g	Conferences of parties to treaties, conventions and agreements such as Codex and the IPPC (incorporated under FAO statutes) may bring issues to the attention of the Council and Conference through relevant the Technical Committee (Basic Text Change)	Conference/ Council	2009 - continuing	0	0
2.69	4.6	Undertake a review with a view to making any necessary changes to enable those statutory bodies which wish to do so to exercise financial and administrative authority and mobilise additional funding from their members, while remaining within the framework of FAO and maintaining a reporting relationship with it.	Management/ Council/ Conference	2009-10	0.3[17]	0

Further Actions to Improve the Effectiveness of FAO Governance

29) A series of supporting actions are envisaged to strengthen FAO governance with respect to ensuring the independence, transparency and efficiency of the Governing Bodies, as well as the dialogue with senior management.

Further Actions to Improve the Effectiveness of FAO Governance – Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.70	4.4a	The Council, Programme and Finance Committees, CCLM, Regional Conferences and Technical Committees will each:	Council	2009 - continuing -	0	0.2
2.71		a) prepare a multiyear programme of work of at least four years duration, once per biennium which will be reviewed by the Council and/or Conference (in accordance with their respective reporting lines);
2.72		b) prepare a report of their progress against the Programme of Work once every two years also for review by the Council and/or Conference.
2.73		The term Governing Bodies will be defined, preferably in the Basic Texts	Conference	2009
2.74	4.1c	The Conference will assess the workings of the governance reforms, including the role and functioning of the Regional Conferences with an independent review as an input to this process.	Conference/ Council	Biennial with target for completion by 2015	0.8	0
2.75	8.6b	In order to further transparency and communication the Director-General will report to and dialogue with the Council and the Joint Meeting of the Programme and Finance Committees on the: · Strategic Framework and Medium Term Plan priorities; · Priority goals which senior management has established for immediate progress; · annual and biennial performance.	Council	2009 - continuing	0	0
2.76		Costs of revising the Basic Texts for all Governing Bodies: Work to be carried out by Legal Office and CCLM for revisions of Basic Texts	Management	2009	0.2	0

Evaluation, Audit and Organizational Learning

30) Evaluation: The learning and accountability functions of a strong evaluation system are indispensable for use by both the Governing Bodies and the senior management of FAO and the conduct of evaluation must be responsive to, but operationally independent of, both. Evaluation in FAO is already of a relatively high standard and provides a strong foundation to build on further. Transparency in evaluation is important, as well as clarity on institutional arrangements.
The Organization’s evaluation policy, strategy and institutional arrangements will be incorporated
in a “Charter” which will be subject to Council approval.

Evaluation - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
Evaluation
2.77	7.10a	Establishment of evaluation as a separate and operationally independent office inside the FAO secretariat structure, reporting to the Director-General and to the Council through the Programme Committee.	Management/ Council	Jan 2009	0	0
2.78	7.11	Evaluation Budget: The evaluation Regular Programme budget will be increased to 0.8-1.0% of the total Regular Programme Budget (over two biennia) and once decided upon by the Governing Bodies, as part of the Programme of Work and Budget approval process, allocated in full to the evaluation office. All contributors of extra-budgetary funds will respect the Council decision that at least 1% of all extra-budgetary funds should be allocated for evaluation.	Conference	2010 -2013	0	4.5
2.79	7.10d	Evaluation staffing: a) Recruitment of Evaluation Director at D2 level. A panel consisting of representatives of the Director-General and Governing Bodies, as well as evaluation specialists from other UN agencies will review the terms of reference and statement of qualifications for the post, and then participate in a panel to screen and select an appropriate candidate. The Director of evaluation will serve for a fixed term of four years with the possibility of renewal for a maximum of one further term, with no possibility for reappointment within FAO to another post or consultancy for at least one year;	Management/ Programme Committee	2009	0	0 Difference between D1 and D2 covered in increase in Budget above
2.80		b) All appointments for evaluation of staff and consultants will follow transparent and professional procedures with the first criteria being technical competence but also with attention to considerations of regional and gender balance. The Director of Evaluation will have the main responsibility for the appointment of evaluation staff and the responsibility for appointment of consultants in conformity with FAO procedures.
2.81	7.10b	Quality assurance and continued strengthening of the evaluation function: a) Strengthening of existing independent peer review of major reports	Evaluation Director	2009 first peer review 2010	0	0 part of above increase in
2.82		b) Biennial review by a small group of independent peers for conformity of work to evaluation best-practice and standards – report to management and the Council together with the recommendations of the Programme Committee			0	evaluation budget
2.83	7.10b	c) Independent Evaluation of the evaluation function every six years – report to management and the Council together with the recommendations of the Programme Committee	Programme Committee & Management	2013 first evaluation	0	0 part of above increase in evaluation budget
2.84	7.10c	Approval by the Council of a comprehensive evaluation policy incorporated in a “Charter”, including the above, and a) the FAO internal evaluation committee will interact with the Programme Committee as appropriate;	Council	2009	0	0
2.85		b) the rolling evaluation plan will continue to be approved by the Governing Bodies, following consultation with the internal evaluation committee;
2.86		c) the follow-up processes for evaluation will be fully institutionalised, including an independent monitoring system and reporting to the Programme Committee;
2.87		d) all evaluation reports, management responses and follow-up reports will continue to be public documents, fully available to all FAO Members. Efforts to discuss and bring the reports to the attention of all concerned Governing Body members will also be further strengthened through consultative groups and workshops on individual evaluations;
2.88		e) the evaluation office will have an institutionalised advisory role to management on results based management and programming and budgeting, reinforcing the feed-back and learning loop;
2.89		f) evaluation will be well coordinated within the UN system, taking account of the work of the Joint Inspection Unit (JIU) and the evaluation office will continue to work closely with the United Nations Evaluation Group (UNEG).
2.90	7.10c	g) The provisions for evaluation as approved in the Charter reflected in the Basic Texts	Council	2009	0	0

31) Audit: High audit standards in FAO must be maintained. The Governing Bodies will examine the internal audit workplan and Management will proceed with ending the membership of the Office of the Inspector-General in decision making committees within FAO to limit potential conflict of interest. The Audit Committee should provide its reports to the Council through the Finance Committee and be available for consultation with the Council as appropriate.

Audit - Action Matrix

2.91	7.9a	In line with current policy, the work of the Inspector-General’s office will be extended to cover all major organizational risk areas, making use of external expertise as necessary	Management	2008 - onwards	0	0.3
2.92	7.9b	The Audit Committee: a) will be appointed by the Director-General and have a membership which is fully external agreed by the Council on the recommendation of the Director-General and Finance Committee;	Management/ Council	2009 - onwards	0	0
2.93		b) present an annual report to the Council through the Finance Committee
2.94	7.9f	The External Auditor will assume responsibility for audit of the immediate office of the Director-General in addition to the regular audits carried out by the Inspector-General	Council	2008 - onwards	0	0

Appointment and Term of Office of the Director-General

32) The post of Director-General will be publicised well in advance of the election (candidatures, as now, will only be proposed by Member Countries). Measures will be enhanced to require the candidates to formally make a presentation to the Council and Conference and respond to questions prior to election. The term of office will be changed to a four year term, with the possibility for only one single renewal for a further term of four years.

Appointment and Term of Office of the Director-General - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.95	4.20	Introduce procedures and Basic Text changes to strengthen opportunity for the FAO membership to appraise candidates for the post of Director-General prior to the election, including:	Conference	2009 - onwards	0	0.1 once every two biennia
2.96		a) Candidates for the post of the Director-General will address the Conference at which the election will be held. Members will have the opportunity to put questions to candidates (expenses of candidates will be covered from the FAO Budget);
2.97		b) Candidates for the post of the Director-General will address a session of the FAO Council not less than 60 days prior to the Conference at which the election will be held. At that session both Members and observers to the Council will have the opportunity to put questions to candidates (the meeting with candidates is for information only and no recommendation or conclusion of the discussion will be made - expenses of candidates will be covered from the FAO Budget);

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
2.98		c) Nominations by Member Governments of candidates for the post of Director-General will close at least 60 days prior to the above Council session;
2.99		d) When the post of Director-General is due to become vacant it will be publicised, no less than 12 months before the closure of nominations, noting that all nominations remain fully the responsibility of Member Countries;
2.100		e) The FAO Conference will consider for approval desirable qualifications for the post of Director-General developed by the CoC-IEE in 2009.	Conference Committee/ Conference	2009	0	0
2.101	4.20	Change Basic Texts for period of office of the Director-General to four years with possibility of renewal for one further period of four years	Conference	2009	0	0

C. Reform of Systems, Programming & Budgeting
Culture Change and Organizational Restructuring

Reform of Programming, Budgeting and Results Based Monitoring

33) In order to improve prioritisation, effectiveness, impact and oversight of FAO’s work, major reforms of programming and budgeting are proposed, including in the role of the Governing Bodies. Assessed contributions and extra-budgetary resources will be managed in a unified work programme, subject to the same planning and oversight, with encouragement to contributors of extra-budgetary funding to reduce earmarking and increase pool funding. Programming and Budgeting documentation will be drawn up, reflecting a results based hierarchy which will be monitored and evaluated for results. The Council will propose the programme of work, the level of the assessed budget and provide an estimate of extra-budgetary funding to the Conference (budgetary data will be divided between administrative and programme budgets corresponding to the new organizational structure). The date of the FAO Conference will shift to June of the second year of each biennium, in order to facilitate an earlier decision on the final budget for assessed contributions and orderly planning and oversight of the definitive programme of work by the Governing Bodies.

Reform of Programming, Budgeting and Results Based Monitoring – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.1	7.1, 7.2 & 3.19	Introduction of revised Programme and Budget Documentation consisting of the following sections, which may be presented as a single document to avoid repetition and provide a complete picture (first full approval 2009 for 2010-2011 biennium):	Conference	2009 – continuing – first full cycle 2010-2011	0.2	0.8
3.2		i) Strategic Framework with a 10-15 year time horizon reviewed every four years and including: · Analysis of the challenges facing food, agriculture and rural development and the dependent peoples, including consumers, · Strategic Vision, · The Goals of Member Nations, and Strategic Objectives for achievement with support from FAO by Member Countries and the international community, including indicative targets and indicators of achievement (some 8-12);
3.3		ii) Medium Term Plan with a four year time horizon and reviewed each biennium, including: · Strategic Objectives for achievement with support from FAO by Member Countries and the international community, as per the Strategic Framework, · Organizational Results framework (outcomes) – a maximum of some 80 inclusive of the core functions, contributing to the achievement of Strategic Objectives by Member Countries and the international community. Each Organizational Result will have specified achievement targets and indicators for verification, show FAO’s contribution and indicate the budget from assessed contributions and estimated extra-budgetary resources (targets may be conditioned upon level of extra-budgetary resources) Gender will be fully integrated into the Strategic Framework and Medium Term Plan and will no longer have a separate Plan of Action,
Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref. IEE Rec	Action			Investment		Recurrent per biennium
		· Impact Focus Areas which combine results, which focus resources as a communication tool, serving to mobilise and improve oversight of extra-budgetary resources in key impact areas, · Core Functions of FAO, and iii) Functional Objectives which ensure organizational processes and administration work towards improvements in a Results Based Framework;
3.4		iv) Programme of Work and Budget, each covering a single biennium, with the budget divided between an administrative budget and a programme budget presented in a results based framework and providing: · Organizational Results framework (outcomes) as per the Medium Term Plan, including the organizational responsibility for each result; · Quantification of costs for all Organizational Results and all obligations · Calculation of cost increase and planned efficiency savings, · Provision for long-term liabilities, under-funded obligations and reserve funds · Draft Programme and Budget resolution.
3.5		v) The summary Programme of Work and Budget will be eliminated in view of the ongoing interaction of the Governing Bodies in the Programme development process.
3.6	7.5	Introduction of a Revised Implementation Performance Results Based Management monitoring system and report: Each report will cover the previous biennium and report on delivery, and targets and indicators of results as well as efficiency indicators for the functional objectives. This report will replace the current Programme Implementation Report.	Council	First report 2012 and then each biennium	0.4		0
3.7	7.3	Introduction of revised cycle of preparation and Governing Body decision making (see Chart 1 below for sequencing). The date of the FAO Conference will move to June, starting from 2011, with a corresponding shift in the dates of all other meetings (the Council will meet in September 2009 in order to prepare the Conference – in line with the new cycle). The following full cycle will be introduced starting 2010 (for budgetary provision for meetings – see B Governance Reform):	Conference	Decision 2009 First full cycle 2010-11 and then continu ing for subsequent biennia	0		0
3.8		i) Year 1 of the biennium (with at least two meetings of the Council): · the Technical Committees will review and make recommendations, with respect to their areas of mandate, on: FAO performance in contributing to results against performance indicators, including any pertinent evaluations, and ¨ priorities and results planned under the Medium Term Plan, including in areas of global governance, and suggest adjustments for the next biennium;
Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N	Ref. IEE Rec	Action			Investment	Recurrent per biennium
		· The Regional Conferences will with respect to their Regions, review and make recommendations on: ¨ FAO performance in contributing to results against performance indicators, including any pertinent evaluations; ¨ priorities and results planned under the Medium Term Plan, and suggest adjustments for the next biennium; and ¨ policy issues for the region to be considered at global level or through additional action at regional level.
		· The Council and the Programme and Finance Committees with respect to their areas of mandate, will review and make decisions on: ¨ the performance implementation report for the previous biennium, including performance against indicators; ¨ major evaluations; ¨ budgetary and implementation performance in the second half of the year; ¨ any necessary adjustments in the agreed Programme of Work and Budget; ¨ approve in advance requested reallocations between Chapters.
3.9		ii) Year 2 of the biennium (with at least two and probably three main meetings of the Council): · Throughout the year the Programme and Finance Committees and the Council will review and make decisions on any necessary adjustments in the agreed Programme of Work and Budget and approve in advance any requested reallocations between Chapters; · January - March: the Programme and Finance Committees and the Council will review the proposed Medium Term Plan and Programme of Work and Budget and in every second biennium, the Strategic Framework; · January –March: - not as part of the Governing Body cycle of meetings - an informal meeting will be held of interested members and other potential sources of extra-budgetary funds and partnership, to exchange information on extra-budgetary funding requirements, especially in relation to Impact Focus Areas; · March/April: The Council will make explicit recommendations to the Conference for the Results Framework and budgetary aspects, including the budget level; · June: The Conference will approve the Results Framework and budgetary aspects including the budget level; and · September – November: the Programme and Finance Committees and the Council will if necessary consider and approve any changes in the Results Framework and budgetary allocations following the Conference decision on the budget level.
3.10	7.3	Introduce necessary Basic Text changes for Programme and Budget cycle including the timing of Governing Body sessions	Conference	2009	0	0
3.11	8.17	In addition to capital account and TCP, introduce provisions for roll-over of up to five percent of the assessed budget, between biennia, in order to smooth income and expenditure, thus reducing wasteful and inefficient transactions.	Conference	2009	0	0

Chart 1

Resource Mobilization and Management Strategy

34) Assessed contributions will be supplemented by extra-budgetary contributions in an integrated resource mobilization and management strategy for support to agreed priorities in the Strategic Objectives. This will facilitate both Governing Body oversight and increased focus and impact, while recognising that extra-budgetary contributions are not fully assured (see also paragraph 8). It will facilitate increased predictability of extra-budgetary resources through greater pool and programme funding (as distinct from project funding) and will reduce transaction costs. Essential building blocks for the strategy will include:

a) the areas selected by the Governing Bodies as an integral part of the Medium Term Planning process to form a focus for extra-budgetary resources:

Impact Focus Areas (IFAs),
Country development priorities as defined in National Medium-Term Priority Frameworks,
Regional and Sub-regional Programmes;

b) a series of measures to improve the management of Assessed Contributions[18].

Resource Mobilization and Management Strategy – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.12	7.6	To supplement Assessed Contributions, projected extra-budgetary resources will be integrated within the programming and budgeting process, including the definition of Impact Focus Areas, while recognising that extra-budgetary funding is not fully predictable (see also paragraphs 8 and 33), and:	Conference	Decision 2009 and then continuing	0.7	0.7
3.13		a) review by the Council of the plans for, the application and results of extra-budgetary resources in an integrated framework on the basis of the findings and recommendations of the Programme and Finance Committees, ensuring that resources are mobilized to support the agreed priorities of the Organization;
3.14		b) put in place a management structure for extra-budgetary resources and assessed contributions which places overall strategy, policy, management and coordination of resource mobilization, including donor relations on policy, in a central Office of Strategy, Planning and Resources Management with decentralized responsibilities at all levels within the coordinated framework for resource mobilization, in particular at regional and country levels including a small unit in the Department of the Organization dealing with Technical Cooperation which will support the decentralized offices and operations units in their liaison with donors[19];
3.15		c) vigorously pursue new partnerships, including with the private foundations;
3.16		d) keep under continuous review both efficiency measures and the cost of support services to extra-budgetarily funded work to ensure that there is no cross-subsidisation between the sources of funds.			0	0
3.17	4.6	Review treaties conventions, agreements and similar bodies and instruments established under articles VI, XIV and XV of the FAO constitution with a view to their developing a greater degree of self-funding from their members (see also 2.69). Present report to Council and reports to the parties to the agreements.	Council & parties to agreements	2010-2012	0	0
3.18	8.16	Introduce measures to encourage timely payment and the avoidance of arrears and management of resource availability, taking account of the Recommendations of the Finance Committee, including:	Conference/ Council	2008 decision and applied continuously starting 2009	0	0
3.19		a) annual review by the Council on the basis of a report from the Finance Committee of the situation of late payments and arrears and its implications for the Organization’s liquidity;
3.20		b) prominent reporting on the main FAO public website of the situations of timely payments and delayed payments and arrears by country;
3.21		c) continuation of the present responsible borrowing policy to smooth cash flow

The Technical Cooperation Programme

35) The Technical Cooperation Programme is a central programme of the Organization enabling it to provide catalytic technical inputs to developing country members. Members thus reaffirmed their commitment to increase both the amount and the proportion of total resources of the Organization from assessed contributions dedicated to TCP, subject to ex-post audit and evaluation. It will no longer be used in any way as a reserve fund for shortfalls in payments, anymore than any other programme of the Organization. The responsibility for TCP allocations will be assigned to Regional Representatives and at country level to FAO Representatives.

Technical Cooperation Programme – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.22	3.2c & 7.8	TCP resources to be allocated to regions under the authority of Regional Representatives, except for 15% retained under the authority of the Department responsible for Technical Cooperation for use in emergencies and 3% for inter-regional projects.	Conference	2008 Decision	0	0
3.23		Indicative allocations to regions agreed as follows with review by the Council every four years in line with the Medium Term Planning cycle: Africa 40%; Asia and Pacific 24%; Latin America and Caribbean 18%; Europe 10%; Near East 8%. Developed countries are eligible for TCP but only on a full refund basis		Full implementation from 2010-11 biennium onwards	0	0
3.24	3.2c & 7.8	TCP project cycle and TCP approval guidelines to be reviewed in 2009, reaffirming priority to Least Developed Countries; Low-Income Food-Deficit Countries; Small Island and Land-Locked Developing States, further clarifying existing Council approved guidelines and specifying:	Programme Committee/ Council	2009 or 2010	0.7	(0.9)
3.25		a) approval criteria including convergence of countries’ needs and the Organization’s agreed Strategic Objectives and Organizational Results;
3.26		b) specify minimum information required from countries for consideration of request;
3.27		c) clarify the project cycle - specifying the steps and responsibilities for clearances at each stage of the process, simplifying the number of steps, and with delegations to decentralized offices at the lowest level possible;
3.28		d) clearly specify timelines for each stage of the process so that managers can be held accountable;			0	0
3.29		There will not be universal criteria for the proportion of TCP funding to go to Regional and sub-regional projects, as this varies from region to region.			0	0

Institutional Culture Change

36) Culture change is fundamental to the successful reform of FAO and is a long-term process which requires high levels of participation and improved communication horizontally and vertically. It is closely linked to human resource policy and a culture of responsibility, accountability and incentives. The establishment by management of a culture change team, in a process led by the Deputy Director-General is welcomed.

Culture Change in the FAO Secretariat – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.30	6.2	Develop terms of reference, and appoint, an External Facilitator and change team	Management	2008-09	1.0	0
3.31	6.1 & 6.2	Development of Internal vision	Management	2008-09	0.5	0
3.32	6.1 & 6.2	Implementation of the vision	Management	2009 onwards	?	?

Ethics

37) The appointment of an Ethics Officer and the subsequent establishment of an Ethics Committee is welcomed.

Ethics – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.33	7.9g	Appointment of an Ethics Officer, functioning of the office, and training of staff	Management	2009	0.2	0.8
3.34	7.9g	Review of Terms of Reference and proposed membership of Ethics Committee by the CCLM and the Finance Committee	Finance Committee & CCLM	2009	0	0
3.35	7.9g	Appointment and initiation of work by Ethics Committee	Management	2009	0	0
3.36	7.9g	Review of annual or biennial report of Ethics Committee by the Council on the basis of the findings and recommendations of the CCLM and Finance Committee	Council	2010 onwards	0	0

Reform of Administrative and Management Systems

38) Approach to Risk: There is agreement on moving from ex ante to ex post controls, and the negative impact of controls and lack of delegation on staff motivation. A risk assessment and management study should be undertaken beginning in 2009. Management is urged to make rapid progress not only in administration but in other areas of delegation, procedural simplification and greater flexibility and introduce these in its early actions.

39) The Root and Branch Review and other Administrative and Financial Improvements: The Root and Branch Review has been contracted to the consultancy firm Ernst and Young and covers all aspects of administrative servicing, contracting purchasing, financial management and systems, human resources, and information technology and communication systems.

40) In addition to the Root and Branch Review a culture and system must be in place to build on the accomplishments of changes in business models and practices and thus ensure that best practice continues to be applied in future. Early actions have been agreed with management to initiate immediate implementation.

Reform of Administrative and Management Systems – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref No.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
Management Early Actions summary including:
3.37	8.4 8.3 &	Delegations of authority from the Office of the Director-General for human resource actions;	Management	2008-2009	0		0
3.38	8.10 8.10	Delegation of authority for procurement, authority for Letters of Agreement to divisional level and in the decentralised offices;			0		0
3.39	8.10	Streamlining of travel procedures;			0		0
3.40		Local procurement for emergencies;			0		0
3.41	8.10	Opening of temporary operational cash accounts in the field;			0		0

Actions				Responsibility for final decision		Start-End Year		Costs or Savings US$ (million)
Ref No.	Ref. IEE Rec		Action					Investment	Recurrent per biennium
3.42			Development and deployment of a field version of oracle adapted to FAORs’ needs. Note: some early actions will be completed by the time of the Special Session of the Conference; other major items which will incur costs beyond the Conference are reflected below (e.g. Root and Branch review and performance management).					0		0
Basic Text change to facilitate delegation of authority
3.43	8.1		Revise Basic Texts to stipulate that in line with the agreed principle of delegations of authority to the lowest appropriate levels, the Director-General may delegate final authority and responsibility in specific areas of work and action to designated officers and such delegations will be reflected in the FAO manual and published job descriptions.		Council/ Conference	2009	0		0
Follow-up to the Root and Branch Review:
3.44	8.1	Conduct of Root and Branch Review			Management	2008-09	2.4		0
3.45		Review by management, the Council and the Finance Committee of the Final Report			Management/ Council	2009	0		0
3.46		Development of follow-up action plan			Management	2009	0		0
3.47		Review by Governing Bodies of the Follow-up Action Plan			Council	2009	0		0
3.48		Implementation of Action Plan			Management	2010 onwards	0		0
Shared Services with Rome Based UN Agencies (see Partnerships below)
Enterprise Risk Management Framework
3.49	8.15		Agreement by Finance Committee on Terms of Reference for a comprehensive enterprise risk management study addressing all forms of risk, including but not limited to financial risk		Management/ Finance Committee	2009	0		0
3.50			Issue of external contract for the study		Management	2009-2010	1.2		0
3.51			Review by management and the Council and Finance Committee of the Final Report		Management/ Council	2010	0		0
3.52			Development of follow-up action plan		Management	2010	1.2		0
3.53			Review by Council and the Finance Committee of the Follow-up action plan		Council	2010	0		0
3.54			Full Implementation of Enterprise Risk Management Structure and systems		Management	2011 - onwards	?		?

Publishing in all Languages of the Organization

41) It is essential that the Organization improve the availability of its publications to users, including different language groups. It must also ensure that good translations are delivered at the lowest possible cost.

Publishing in all Languages of the Organization - Action Matrix
Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.55	3.6	A budget will be set aside for technical publishing (paper and web) in each FAO language. A panel of users of technical documentation in each language will decide on the application of funds for translation (this is in addition to the existing budget for main meeting documentation)	Management	2010 onwards	0	0
3.56	3.6	Increased hard copies of technical documentation will be made available to Least Developed Countries with decisions on priorities for documents taken by the same panels	Management	2010 onwards	0	0
3.57		Separate mirror websites to the FAO website will be developed for Arabic and Chinese	Management	2010 onwards	0.2	0.1
3.58		Following the findings of the Root and Branch Review, improvements will be introduced to ensure quality and timely translation if possible at reduced costs	Management	2010 onwards	0	0

Human Resource Policies and Practices

42) FAO’s human resources are the main asset of the Organization, providing the totality of its technical support to Member Countries. The strategy developed by Management presented a vision which now needs to be converted into a concrete action plan. Although the detailed results of the Root and Branch Review will further improve the plan, immediate improvements will proceed in parallel with this Review according to the Plan. The Council with the support of the Finance Committee will actively review human resources policy and practices.

Human Resource Policies and Practices - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.59	8.5	Maintaining the primary criteria of staff and consultant selection on the basis of merit, implement an effective policy for geographical and gender representation, particularly regarding developing countries	Management/ Finance Committee	2009 - continuing	0.1	0.1
3.60	8.8	Introduce a package for increasing staff training, including in management	Management	2009 - continuing	1.7	1.8
3.61	8.2	Establish an incentive based rotation policy in HQ and between HQ and the decentralized offices with clear criteria	Management/ Finance Committee	2009 - continuing	0	8.8
3.62	8.2	Establish a joined-up and consistent system for the recruitment and development of young professionals, particularly from developing countries. This will include the intern programme	Management/ Finance Committee	2010 - continuing	0	2.0
3.63	8.4	Decentralise and delegate decision making within clear policies and requirements, including further delegation of authorities from the Office of the Director-General and from senior management	Management	2008 - continuing	0	0
3.64	8.4	Wider publication of FAO vacancies	Management	2009 - continuing	0	0.2
3.65	8.4	Develop, publish and implement procedures for full transparency in the selection and recruitment of all senior staff and FAORs	Management/ Finance Committee	2009 - continuing	0	0
3.66	8.4	Revise competency profiles for Regional Representatives, sub-regional coordinators and FAORs, including competencies in management and policy support	Management/ Finance Committee	2009 - continuing	0.1	0
3.67	8.3	Introduce transparency and competitive policies for recruitment of consultants with measures to ensure attention to geographical and gender balance	Management/ Finance Committee	2009	0	0.1
3.68	8.3	Rationalise the use of FAO retirees who will not be rehired for at least six months after their retirement from FAO	Management	2009	0	2.0
3.69	8.3	Consultants, including FAO retirees, will not be used for long-term gap filling in vacant posts as a cost saving measure	Management	2009	0	0
3.70	8.7	Introduce an objective staff appraisal system linking staff performance to organizational objectives based on realistic performance targets and objective assessment criteria	Management Finance Committee	2009	1.7	0.7
3.71	6.15 & 8.3	Introduce dual grading for P5/D1 and D1/D2 posts	Management	2009	0	0
3.72	8.2	Upgrade the Oracle systems to i) improve ease of data extraction and analysis and ii) to support substantive staff management, rather than purely transaction processing	Management	2010	1.3	0
3.73	8.3c	Establish a staff redeployment fund initially funded from extra-budgetary resources and subsequently funded from a proportion of staff costs	Council	2009	12.4	5.0
3.74	4.8e	Enhance governance oversight of all aspects of human resource policies through the Finance Committee, including the use of consultants	Council/ Finance Committee	2009	Covered under Governance
3.75	8.3d	Governing Body action and action by management to secure changes at the UN Common System level a) develop proposals for Common System change b) present changes to UN	Council & Management	2010-2011	0	0

Restructuring for Effectiveness and Efficiency

Functioning as One Organization

43) The decentralized offices and headquarters will work as one effectively integrated Organization, through decentralization of authorities, networking and full involvement of the decentralized offices in FAO’s overall decision making. Similarly headquarters will be organized in fewer units with a much more integrated approach to programmes and clearer lines of responsibility. This culture change underlies many of the actions and changes discussed below.

Decentralized Offices and Country Presence

44) It is important for FAO to have a strong decentralized presence to contribute in a results based framework to the achievements of the Organization’s Strategic Objectives. Such a presence is essential to provide services flexibly to Members and create an effective flow of information as a knowledge organization. Decentralization will be accompanied by delegation of responsibility with accountability. In common with the whole of FAO, decentralized offices and staff will be subject to results-based performance assessment.

45) Effective decentralisation depends upon an appropriate balance between administrative costs and programme expenditures and between headquarters and field offices and strategically selected locations. The present situation of an inadequate budget to ensure the continuous staffing of Country offices is unsustainable and the structural deficit cannot not be allowed to continue. Offices will be specifically tailored to the needs of individual countries and regions with rationalised coverage based on clear criteria for resource allocation and developmental impact at country level. Improvement and rationalisation of decentralised services will thus proceed in a framework which, without impairing Headquarters capabilities, assures adequate resources for both the capacities of decentralised offices and headquarters.

Decentralization - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.76		The Programme and Finance Committees will support the Council in providing policy oversight of all aspects of the Decentralization including in particular the implementation of the Immediate Plan of Action	Council Programme & Finance Committees	2009 - onwards	0	0
3.77		Organize Senior Management Meetings so that ADG/Regional Representatives can be present via video link	Management	2008 - onwards	0	0
3.78	6.20	Transfer the primary reporting line for decentralised technical officers in the regional offices to the Regional Representatives (ADGs) or, where more appropriate for sub-regional staff, the sub-regional coordinator	Management	2009 onwards	0	0
3.79	6.19	Fully involve ADG/Regional Representatives in programming and budgeting (see also 3.14)	Management	2009 onwards	0	0
3.80	6.20	Transfer Budget and Programme responsibility of technical officers in the regional offices to the Regional Representatives (ADGs)	Management	2010 onwards	0	0
3.81	6.20	Transfer primary responsibility for technical, substantive and technical aspects of supervising FAORs to the Regional Representatives (ADGs) with, where appropriate, the reporting line to the ADG through the sub-regional coordinator. A unit in the office responsible for operations will handle overall coordination, liaison between regions, etc.	Management	2009 onwards	0	0
3.82	6.19	Revise all delegated authorities to decentralized offices and control procedures (see also above)	Management	2009 – completion 2011	0	0
3.83	6.21	Discontinue administrative responsibilities with sub-regional offices to allow them to function fully as technical support units to countries of the sub-region	Management	2009 – completion 2010	0	0
3.84	6.22	Clearly distinguishing between well established offices and any plans for additional new offices, rationalise coverage of country offices following results of review utilising agreed criteria, taking into account both existing and potential locations, efficiency, projected cost savings and cost/benefit analysis. Implementation of the results of the review will ensure that at a minimum the structural deficit is eliminated in the Country representation (FAORs) through alternative forms of country presence, with further reductions desirable to free up resources for the improved functioning of the decentralized offices. Criteria to be applied: a) size of the FAO Programme (indicative ratio office costs to size of programme 1:3); b) commitment to the National Medium-Term Priority Frameworks as they are developed with FAO; c) size and poverty levels of agriculturally dependent population; d) priority to Least Developed Countries; e) potential for agriculture in economic growth; f) ease of servicing from another country; g) potential for shared or fully joint representations with the UN system, particularly with the other Rome-based agencies, and other regional organizations as appropriate; and h) willingness of governments to cover costs of FAO presence.	Management (with annual reports to Council with savings indicated)	2009-12 (with Council annual review and overall review in 2012)	0	0
3.85	6.20 & 6.21	Adjust composition of sub-regional and regional office staffing in line with priority needs, reviewed in light of the UN system offices	Management	2009-12	0	0
3.86		Clarify coverage of Near East Regional Office	Management	2010	0	0
3.87	8.4	Redefine job descriptions, profile of competencies (including policy competence), recruitment and performance appraisal procedures (open competitive) for Regional ADGs, Sub-Regional Coordinators and FAORs (see also 3.66)	Management	2009	0.1	0
3.88	8.6	Introduce benchmarks and a performance-based reporting and monitoring system for decentralized offices	Management	2010	0.2	0.6
3.89	8.8	Strengthen staff training (see also 3.60)	Management	2009	Covered under HR above
3.90		Deployment of support systems (including training and upgrade of IT information systems)	Management	2009	1.3	3.4

Headquarters Structure

46) A comprehensive programme of Headquarters restructuring will be initiated in 2009 for completion by 2012. Recurrent savings will be achieved through restructuring for redeployment in undertaking the technical work of the Organization. The following principles are being applied to restructuring:

a) Facilitating the effective work of the Organization in achieving Organizational Results and contributing to Strategic Objectives in line with the results-based framework;

b) A manageable span of control of the number of reports to managers at all levels, including the Director-General;

c) Consolidation of units at all levels to reduce fragmentation and costs of senior posts, reducing FAO’s tendency to work in silos;

d) Better integration of headquarters and decentralised offices with representation of the decentralized offices in senior management decision making processes;

e) Flexible unit structure depending upon functions;

f) Delayering, with reduction of senior posts including D1 and D2 levels, with the introduction of dual grading of posts including D1/D2 and P5/D1 in order to strengthen technical capacity and with due attention to improving geographical and gender balance;

g) Facilitating the effective development and use of human resources, including the management, training and promotion of human resources as a major element in reshaping the headquarters structure;

h) Promotion of management by results with clear frameworks for action and delegation and accountability for management within the frameworks and policy guidelines;

i) Undertaking tasks at the most cost-effective location;

j) Exploring the possibilities for shared services and joint action within the framework of partnership in the UN system and amongst the Rome-based UN agencies (see IPA Action Matrix points 3.109-3.113);

k) Exploring possibilities for cost-efficient and effective outsourcing; and

l) Maintaining flexibility to respond to changing world needs.

47) Changes in the apex organizational structure are designed to be fully responsive to the issues raised by the Root and Branch Review in the high level business model and will be flexibly adjusted during 2009 for implementation in 2010-11, as the functions are further developed in the lower subordinate structures. The recommendations of the Root and Branch Review are expected to have particular implications for the functional organization of corporate services, while the further development of the Organizational Results for the Strategic Framework and Medium Term Plan will have implications for the flexible development of the functional structure within the Technical Departments. Both the Medium Term Plan and the Root and Branch Review may have implications for operational functions. The apex structure of the senior management (see Box 5) is approved in principle and will be implemented in 2010 following any adjustments resulting from a complete functional analysis in 2009. The departmental structures and mandates will also be finalised for implementation in 2010 following this analysis.

48) Equally important to the organizational structure is the development of functional relationships, decision making and communication, together with the underpinning development of human resources.

Headquarters Structure – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref.N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
	6.7 & 6.15	a) establish offices of:	Conference (2008)	2009	0	0
3.91		i) Strategy, Planning and Resource Management;	Conference (2008)
3.92 3.93 3.94		ii) Evaluation; iii) Legal and Ethics b) examine the most appropriate organizational functions and structure for corporate communications, partnership and interagency affairs;		2009
3.95		c) transfer OCD functions to Regional/sub-regional Offices and to a coordination unit in the office responsible for operations;		2010 -11
3.96		d) delayering of D level posts (27 to be abolished for 2010-11 biennium)		2010 - 11		(17.4)
3.97	6.6 6.7 & 6.8	Approve in principle the apex of the Structure of Headquarters Departments and the Senior Executive Management (see Box 5 below) for introduction in 2010, subject to any adjustments indicated by the functional analysis below	Conference 2008	2010-11	0	0
3.98		Complete functional analysis of the work of the Headquarters Departments and finalise plans for their reorganization and detailed mandates · Technical Departments in light of Medium Term Plan · Operational functions in light of Medium Term Plan and the Root and Branch Review · Support Services, Administration and Human Resources in light of Root and Branch Review	Management/ Conference Committee/ 2009 Conference	2009	0	0
3.99		Conference approval of the revised Headquarters structure in the Programme of Work and Budget 2010-11	Conference	2009	0	0
3.100		Appoint Senior Executive Management Team including two DDGs	Director-General	2010	0	0
3.101		Implement new Headquarters structure	Management	2010-11	0.5	17.4
3.102		Reorganize senior management responsibilities, including for strategic objectives and core functions	Director-General	2009-10	0	0
3.103		Review reorganization with a view to further improvements	Council/ Conference	2012	0	0

Box 5: Organizational Structure (apex level)

Partnerships

49) A strategy for development of FAO’s capacity to assist Members in achieving their Global Goals through partnerships and strong alliances is fully endorsed. Particular stress is placed on the importance of partnership with the Rome Based agencies with respect to both technical and administrative functions at country and headquarters levels and partnerships at country level within the UN system in the context of UN system coherence and effectiveness for members. At regional and sub-regional levels importance is attached to cooperation with regional economic organizations and it is emphasised that global partnerships must address regional and country dimensions as well as global issues. New approaches need to be developed for partnership with the private sector.

Partnerships – Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref. N.	Ref. IEE Rec	Action			Investment	Recurrent per biennium
3.104	5.1	Finalise and disseminate guiding corporate principles on partnerships as a living document, including that partnerships are:	Management	2008-2009	0	0
3.105		a) not an end in themselves but a means for greater effectiveness in supporting international governance of agriculture and agricultural development, pursuing the objectives and priorities of the Strategic Framework of the Organization. The desirability of a partnership thus depends on the mutual value-added and benefits in achieving shared objectives expressed in terms of results, and weighed against the costs and impediments to its effectiveness for the partners;
3.106		b) based on the comparative advantages of the partners and aim at specific goals of FAO shared by the partners; and
3.107		c) generally built-up from ongoing collaboration.
3.108		The nature of FAO’s role will vary according to the different partnerships it engages in and the Organization may take a leadership role or act as facilitator in some, and be a participant in others. FAO must at all times preserve its neutral and impartial role and act in a transparent manner, avoiding partnerships where significant conflict of interest is of concern
3.109	5.1	Stocktaking of partnerships including the potential for greater partnership with the private sector. Undertake assessment and launch new or renewed partnerships pursuing the possibilities for further joint activities and collaborative arrangements with: Ø the United Nations system, with emphasis on partnership at country level; Ø CGIAR and OIE; Ø International Atomic Energy Agency; Ø the private sector; Ø civil society organizations	Management/ PC/FC and Council	2009-2010	0	0.2
3.110	5.1	Preparation of a short-term agenda of initiatives (12 months) that will generate outcomes and outputs and preparation of a medium-term action plan in line with the Medium Term Plan (4 years), including development and implementation of a training programme	Management	2009	0.2	0.1
3.111	5.4	Further pursue partnership with the Rome based UN agencies for synergies leading to both efficiency gains and increased effectiveness, making full use of the comparative strengths of the three Organizations within their respective mandates, particularly with respect to:	Management/ PC/FC/ Council	2009 - ongoing	0	0
3.112		a) areas of technical programme interface and overlap both in normative and development work;
3.113		b) shared administration and services (taking note of the findings of the Root and Branch Review);
3.114		c) joint oversight functions, including evaluation.
3.115		Regular joint meetings of the management of the three organizations will take place with the membership to review progress		2010 ongoing
3.116		Progress and proposals to be reviewed annually by the Council on the basis of recommendations of findings of the Programme and Finance Committees		2009 - ongoing	0	0
3.117	5.1	Establishment of a monitoring mechanism to ensure feedback and iterative improvement of partnership collaborations and of the FAO strategy	Management	2009- 10	0.3	0
3.118	5.1	Establishment of focal point responsibilities for partnerships	Management and Council	2009- 10	0	0

D. Follow-up Arrangements for Implementation
of the Immediate Plan of Action

Governing Body Follow-up

50) A combination of use of the Council and a time-bound Conference Committee will ensure follow-up of the decisions of the Special Session of Conference for the Implementation of the Immediate Plan of Action, including finalisation of the Strategic Framework and Medium Term Plan and consideration of the major recommendations of the Root and Branch Review. The provisions will maintain continuity with CoC-IEE Follow-up process and also strengthen involvement of the continuing Governing Bodies through the Council and Programme & Finance Committees.

Governing Body Follow-up - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
Ref N.	Ref. IEE Rec	Action	Responsibility for final decision	Start-End Year	Investment	Recurrent per biennium
4.1		The Council will monitor the progress of implementation of the Immediate Plan of Action. and report to the Conference at its 36^th Session (2009) and its 37^th Session (2011). It will be supported in this by the Programme and Finance Committees and reports from the management.	Conference	2009-11	0	0
4.2		A time-bound Conference Committee will be established for the duration of 2009 under Article VI of the FAO Constitution to complete outstanding work within the Immediate Plan of Action (see below). It will present its report to the 36^th Session of the FAO Conference in November 2009. This Committee will collectively decide the final recommendations of the Committee to the Conference, arriving at its decisions to the maximum extent possible through consensus. The Conference Committee will undertake its work with the direct support of Working Groups and with direct expert inputs to the Working Groups from the Programme and Finance Committees and the advice of the Council as appropriate. FAO management is expected to actively support the Committee and participate in its meetings and those of its Working Groups.	Conference	2008-09	1.6	0
		The functions of the Committee, without prejudice to the statutory functions of the Council and its standing committees are:			0	0
		i) to recommend to the 36^th session of the FAO Conference (2009):
4.3		· the new Strategic Framework, Medium Term Plan 2010-13 and the Programme of Work and Budget 2010-11 proposed by management with a new integrated results-based framework. These recommendations will be developed by the Conference Committee and will be undertaken with the support of a Working Group of the Conference Committee and with direct expert inputs to the Working Group from the Programme and Finance Committees, the support of management and the advice of the Council as appropriate;
4.4		· any changes found desirable in the size and regional representation in the membership of the Council and propose with advice from the CCLM any necessary changes in the Basic Texts to the 2009 Session of the Conference;
4.5		· further reforms of systems, culture change and organizational restructuring, including: ¨ Follow-up action to the final report of the Root and Branch Review (17 April 2009); ¨ Initiation and review of the report of the study for an Organizational Risk Assessment and Management Framework, ¨ Plans for increased effectiveness and streamlining of the decentralized offices; ¨ Plans for restructuring of headquarters; ¨ Detailed proposals for strengthened financial management; and ¨ Detailed proposals for strengthened Human Resource management.
4.6		ii) to provide policy oversight and guidance of the process of revision of the Basic Texts in line with the changes provided for in the Immediate Plan of Action (and propose the necessary changes to the Conference Report). This work will be carried out on the basis of the recommendations of the Committee on Constitutional and Legal Matters (CCLM) and review by the Council as appropriate.

Managerial Arrangements for IEE Follow-up Implementation

51) The Director-General has established internal managerial arrangements which are currently overseen by the senior management meeting supported by a reform group of senior staff and with a number of working groups on particular issues. These arrangements are currently being reviewed for the future and a dedicated coordinator may also being appointed.

FAO Managerial Arrangements for IEE Follow-up Implementation – Action Matrix

Actions	Responsibility for final decision	Start-End Year	Costs or Savings US$ (million)
4.7 4.8 4.9		Establish internal managerial arrangements including: i) a reform support group; ii) specialist working groups, including for the Root and Branch Review and the Change Team drawn from all parts and levels of the Organization (decentralised and centralised)	Director-General	2008-11	2.0	0

Actions

Responsibility for final decision

Start-End Year

Costs or Savings US$ (million)

Ref N.

Ref IEE Rec

Action

Investment

Recurrent per biennium

4.7

4.8

4.9

Establish internal managerial arrangements including:

i) a reform support group;

ii) specialist working groups, including for the Root and Branch Review and the Change Team drawn from all parts and levels of the Organization (decentralised and centralised)

Director-General

2008-11

2.0

Resourcing Implementation of the Immediate Plan of Action

52) For 2009, ensuring the start-up of implementation, including the Governance follow-up arrangements, requires funding by voluntary extra-budgetary contributions through the establishment of a Trust Fund. Such funding should also permit immediate follow-up to the Root and Branch Review and ensure the integrity of implementation of the 2008-09 Programme of Work and Budget. From 2010-11 funding for implementation of the Immediate Plan of Action will be treated under the Programme of Work and Budget. Provisional costings totalling US$ 21.8 million for 2009 are provided below.

Funding Requirements of the IPA and Root and Branch Review in 2009 (US$ million) (provisional figures)
	Costs			Resources already identified	Resource requirement 2009
	Investment	Recurrent	Total	Resources already identified	Resource requirement 2009
Immediate Plan of Action	13.1	5.1	18.2
Root and Branch Review	4.5	3.0	7.5
Total	17.6	8.1	25.7	3.9	21.8

Funding 2009 Implementation Follow-up - Action Matrix

Actions			Responsibility for final decision	Start-End Year	Provisional Costs or Savings US$ (million)
Ref N.	Ref. IEE Rec	Action	Responsibility for final decision	Start-End Year	Investment	Recurrent per biennium
4.10		Establish Trust Fund and cost of 2009 implementation	Conference/ Management	2008	14.7	7.1
4.11		Contribute to Trust Fund	Members	2008-09

Annex to the Immediate Plan of Action
Summary of Costs, Savings, Resource Requirements and Implementation Schedule

i) Summary of Costs, Savings and Resource Requirements for Implementation of the Immediate Plan of Action (IPA)

I: Introduction

1) The discussion below presents preliminary and tentative costs and savings estimates and resource requirements for the implementation of the Immediate Plan of Action and for the initiatives described in the Stage 1 deliverable of the Root and Branch Review.[20] Costs and savings estimates could alter if projects change in scope or timing, as further information becomes available, and/or if further synergies are identified[21]. In particular, it will be important to gain a deeper understanding of all initiatives stemming from the Root and Branch Review in conjunction with the IPA actions.

2) The estimated costs and savings for each action are provided in the action matrices in of the Immediate Plan of Action (IPA). The assumptions for development of the costings and savings can be found in the Annex to Finance Committee document FC 123/18 - Cost and Funding Modalities of the Immediate Plan of Action.

3) This section of the Annex to the Immediate Plan of Action (IPA) is divided into four main parts:

Section II focuses on overall costs and savings from the implementation of the IPA (i.e. excluding the preliminary findings of the Root & Branch Review).

Section III presents the costs and savings stemming from the main initiatives identified in the Stage 1 Deliverable in the Root and Branch Review.

Section IV presents a holistic view of the IPA and preliminary Root and Branch Review costs and savings.

Section V focuses on 2009 only (IPA and Root and Branch Review), presenting all requirements and identified sources of funding.

II: Immediate Plan of Action (2009-2011)

4) The following five tables are presented to provide a more categorized view of the costs shown in the action matrices in Part II of the IPA. The tables show all IPA costs grouped into sub-categories, and include total investment costs and total biennial recurrent costs. The subset of costs for 2009 is shown in Section V.

5) Table 1 shows the costs for improved governance and oversight. While investment costs are not particularly high (USD 1.3 million), the recurrent biennial costs are quite substantial at USD 9.2 million per biennium. Under governance, the large increases occur for the Council, where additional sessions and translation of verbatim records increase costs by USD 3.1 million. The other large increase in this category is a result of the importance given to Evaluation, where bringing the budget to at least 0.8% of the Regular Programme budget results in a biennial increase of USD 4.5 million.

Annex Table 1

6) Table 2 provides an overview of the largest single cost category in the IPA, which is dedicated to increase effectiveness through improved human resource policies and practices. The actions are grouped into three categories: attracting the highest calibre staff, developing and appraising staff, and staff renewal. The single largest recurrent cost in these categories is the implementation of a rotation policy, which, assuming 80 rotations per year, would result in USD 8.8 million in recurrent costs per biennium.

Annex Table 2

7) Another large item is a one-time staff redeployment fund of USD 12.4 million, which is the estimated cost of implementing the proposed delayering at headquarters. Although this is a large upfront cost, it would allow the Organization to permanently reinvest USD 17.4 million in the technical programmes (see table 3).

8) While the total costs related to organizational restructuring and revised programme planning (table 3) are relatively small (USD 4.1 million investment and USD 4.6 million recurring costs), the changes underlying these items are very large. For example, the headquarters’ structure changes will result in a significantly streamlined and downsized management structure with the related savings reinvested in the technical programmes (USD 17.4 million). The planning changes will allow for improved resource mobilization and provide a basis for more effective programme evaluation. The TCP programme changes, once fully implemented, will result in efficiency savings (USD 0.9 million per biennium).

Annex Table 3

9) The items in Table 4 related to the reform of administration, management and culture entail relatively large investment costs (USD 7.2 million), but are expected to result in significant improvements in the ways of working.

Annex Table 4

10) Finally, Table 5 shows the estimated costs of Governing Bodies and Management in supporting the Implementation follow-up.

Annex Table 5

III: Root and Branch Review Initiatives

11) The costs and savings presented by the consultants, Ernst & Young in the Stage 1 Deliverable of the Root and Branch Review have been tentatively considered in preparing this document. It should be stressed that the figures provided by Ernst & Young are preliminary and tentative estimates which management has not had the opportunity to confirm in detail, and which will need to be verified in Stage 2 of the Review. In providing their figures, Ernst & Young took into consideration all items costed within the IPA to avoid any obvious double counting. Estimated savings identified in the Ernst & Young report are shown only in this section; no attempt was made to allocate the savings to individual actions in the IPA, although many synergies obviously exist.

12) Table 6 provides an overview of the cost and savings estimates stemming from the Root and Branch Review. Total investment and recurring costs are estimated at approximately USD 16.5 million (with USD 9.2 in investment costs and USD 7.3 million in biennial recurrent costs).

13) Ernst &Young estimate savings stemming from their main initiatives at USD 5 million to USD 7 million per year. These would be realized in a phased fashion over the next two biennia, shown here as resulting in USD 13 million savings by 2012-13. In addition, early savings (described by Ernst & Young as achievable by the Organization in six/twelve months following the relevant decisions) would be in the range of USD 3.0 million per biennium. They note that these figures enable an average return on investment through efficiency savings and productivity gains within 30 months.

Annex Table 6

IV: Total Costs and Savings [22]

14) Table 7 presents a summary of all costs and savings shown in tables 1 through 6. The IPA figures now show the savings separately from the costs (savings are USD 17.4 million for delayering and USD 0.9 million for TCP programme changes). Total investments required over the next three years are estimated to be in the range of USD 42.7 million. The changes implemented would result in USD 61.3 million in recurrent costs which are offset by savings of USD 34.3 million, after some phasing in. The final result would be a growth budget of USD 27 million. These figures compare to total investment costs (average) of USD 69 million in the IEE and a growth budget of USD 22.5 million.

Annex Table 7

V: 2009 Requirements and Funding

15) Of the total estimated investment costs of USD 42.7 million, USD 17.6 million would be required in 2009. Recurrent costs are expected to reach USD 8.1 million in 2009, bringing total 2009 requirements to USD 25.7 million (see table 8).

Annex Table 8

16) Table 9 shows the identified sources of funding totalling USD 3.9 million which could cover part of the 2009 requirements. The current request for voluntary contributions for the remaining 2009 requirements would therefore be in the range of USD 21.8 million.

Annex Table 9