Implementation: Supervision 6.1 n/a The Memorandum of Association prescribes yearly Undertake audits. One has to draft terms on what the audit should independent audit include; whether only the financial or also the operational of funds regularly procedures etc. Ideally this should be done jointly also against impact 6.2 Design and assessment for conservation objective. For a financial implement annual person the functioning and profitability of the M&E Programmes funds’ performance tops the agenda. The environmentalist is to assess impact on most interested what the fund achieves on implementation Fund level. To match the two necessities and setup the fund as a two prong mechanisms is the challenge. For both aspects a proper M&E framework has to be in place hopefully harmonised among all stakeholders. Legal Framework provisions 1 Registration requirement Yes, registered under British Company's Act No.6 2 Scope of allowed activities As per Memorandum of Association 3 Governance arrangements As per Memorandum of Association 4 Processes and procedures for receipt of funds Hand Book I-III 5 Limitation on investment activities As per defined objectives/fund manager 6 Taxation requirement, incl. regulations In the UK as well as in GB (Memorandum of governing taxation of assets outside of the Understanding) should be tax exempted. country 7 Arrangements of dissolution of the Fund As per Memorandum of Association GEF Minimum Eligibility Criteria to be checked in feasibility study 1 The fund can be established as a public-private Done mechanism outside of the direct government control 2 The fund has clear goals and objectives, which FBG has clear general goals and overall can be satisfied with the income generated from objectives. These need to be broken down to the proposed capital targets more specific and detailed goals. The underlying financing study determining the proposed capital targets needs to be updated over time as the assumptions and underlying data is too general to conclude accurate fund requirements. 3 Existence of basic fabric of legal and financial Yes practices and supporting institutions (including banking, auditing and contracting) in which the international community has confidence. 4 The fund may operate cost effectively , with An initial capitalisation of the fund of 6.8 Mio operating costs within a range of 20-25% of the Euros is committed, and with planned expenses available annual income of Euro 259,000 in the first years of operations, the ratio far exceeds GEF's set target of up to 75%. Surely this will diminish if more funds can be mobilised. It should also be taken into account
Implementation: Supervision 6.1 Undertake independent audit of funds regularly n/a The Memorandum of Association prescribes yearly audits. One has to draft terms on what the audit should include; whether only the financial or also the operational procedures etc. 6.2 Design and implement annual M&E Programmes to assess impact on Fund Ideally this should be done jointly also against impact assessment for conservation objective. For a financial person the functioning and profitability of the funds’ performance tops the agenda. The environmentalist is most interested what the fund achieves on implementation level. To match the two necessities and setup the fund as a two prong mechanisms is the challenge. For both aspects a proper M&E framework has to be in place hopefully harmonised among all stakeholders. Legal Framework provisions 1 Registration requirement Yes, registered under British Company's Act No.6 2 Scope of allowed activities As per Memorandum of Association 3 Governance arrangements As per Memorandum of Association 4 Processes and procedures for receipt of funds Hand Book I-III 5 Limitation on investment activities As per defined objectives/fund manager 6 Taxation requirement, incl. regulations governing taxation of assets outside of the country In the UK as well as in GB (Memorandum of Understanding) should be tax exempted. 7 Arrangements of dissolution of the Fund As per Memorandum of Association GEF Minimum Eligibility Criteria to be checked in feasibility study 1 The fund can be established as a public-private mechanism outside of the direct government control Done 2 The fund has clear goals and objectives, which can be satisfied with the income generated from the proposed capital targets FBG has clear general goals and overall objectives. These need to be broken down to more specific and detailed goals. The underlying financing study determining the proposed capital targets needs to be updated over time as the assumptions and underlying data is too general to conclude accurate fund requirements. 3 Existence of basic fabric of legal and financial practices and supporting institutions (including banking, auditing and contracting) in which the international community has confidence. Yes 4 The fund may operate cost effectively , with operating costs within a range of 20-25% of the available annual income An initial capitalisation of the fund of 6.8 Mio Euros is committed, and with planned expenses of Euro 259,000 in the first years of operations, the ratio far exceeds GEF's set target of up to 75%. Surely this will diminish if more funds can be mobilised. It should also be taken into account