Programme Cooperation Agreement 2010 – 2011

over the period, or 41% of total funding. The external contribution decreased slightly over the period and was compensated by an extraordinary infusion by MoFA for the UNEP Shelf Programme (ref. Chapter 11). An external audit dated 7 February 2012 forms part of this report (ref. Annex 3). Projected funding for 2012 is robust. A total of 63 projects were closed during the year and, as at 31 December 2011, 88 projects were still active (the New Year began with 115 active projects). In 2010, income was generated from 143 different projects, of which 47 projects were closed by year’s end. In 2011, income was generated from 126 individual projects, some overlapping from 2010. GRID-Arendal’s funding reserve was reduced by 28% in 2011 compared to the previous year (i.e. from MNOK 7.4 in 2010 to MNOK 5.3). GRID-Arendal’s institutional commitment and cumulative efforts to mainstream Results-based Management (RbM) into its programme operations and reporting over the past two years are visible in this Final Report for 2010-2011. There is room for improvement and growing recognition that the alternative to RbM is not the status quo but a gradual deterioration in quality and capability. And that is not an option. Going forwardgreater attentionwill bepaid to incorporating critical elements of RbM in the project cycle – including clearly defined goals, indicators and targets, a demand-led approach, stakeholder analysis, and identification of risks and associated mitigation planning. Staff is increasingly

aware of the importance of tracking progress and, above all, identifying, substantiating and reporting on results. An active training programme will be implemented to help achieve this goal. GRID-Arendal and UNEP are moving in step with one another to enhance the working relationship on both the strategic and operational levels through the application of RbM principles. Important progress has been made in strengthening coordination processes, principally through joint consultations on how best to apply RbM principles to joint reporting responsibilities and, most important, to joint design, management and implementation responsibilities. While RbMholds the key for strengthening the effectiveness of GRID-Arendal / UNEP collaboration at the operational level, where it counts the most, the significance of joint efforts to better align the institutions at the strategic level cannot be underestimated. Thus, a major related undertaking in 2012 will be the revision of GRID-Arendal’s corporate strategy (current strategy runs up to 2013), to coincide with the next cycle of UNEP’s medium term strategy. Closely correlated to this task is design and implementation of an organisation- wide framework to continuously monitor and evaluate (M&E) performance against the strategy. The M&E framework will include systems for establishing baselines and measuring well-defined performance indicators to help ensure that goals are relevant and realistic, and that outcomes and impact are achieved efficiently and effectively over time.

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