Reducing management costs increases the proportion of funding used for the direct benefit of affected people. This may only be demonstrated over time, since measuring efficiency and effectiveness requires baseline information. Reducing management costs depends upon reducing donors’ and aid organizations’ individual reporting requirements and oversight mechanisms.

In November, 2018, UNHCR, UNICEF and WFP have jointly launched  a common UN Partner Portal (https://www.unpartnerportal.org), which was inspired and modelled from the UNHCR Partner Portal features (https://partner.unhcr.org). The information on partners that had previously registered with the UNHCR Partner Portal have been migrated into that of the common UN Partner Portal. These partners and data are now recognised by the other UN participating agencies (UNICEF, WFP and UNHCR), thus they do not require to re-register. The UN Partner Portal aims to converge processes and provide a single gateway for partners and harmonize due diligence assessments. 

Aid organisations and donors commit to:

1. Reduce the costs and measure the gained efficiencies of delivering assistance with technology (including green) and innovation. Aid organisations will provide the detailed steps to be taken by the end of 2017.

Examples where use of technology can be expanded:

• Mobile technology for needs assessments/post-distribution monitoring;
• Digital platforms and mobile devices for financial transactions;
• Communication with affected people via call centres and other feedback mechanisms such as SMS text messaging;
• Biometrics; and • Sustainable energy.

2. Harmonise partnership agreements and share partner assessment information as well as data about affected     people, after data protection safeguards have been met by the end of 2017, in order to save time and avoid duplication in operations.

Aid organisations commit to:

3. Provide transparent and comparable cost structures by the end of 2017. We acknowledge that operational management of the Grand Bargain signatories - the United Nations, International Organization for Migration (IOM), the Red Cross and Red Crescent Movement and the NGO sector may require different approaches.

4. Reduce duplication of management and other costs through maximising efficiencies in procurement and logistics for commonly required goods and services. Shared procurement should leverage the comparative advantage of the aid organisations and promote innovation.

Suggested areas for initial focus:

• Transportation/Travel;
• Vehicles and fleet management;
• Insurance;
• Shipment tracking systems;
• Inter-agency/common procurement pipelines (non-food items, shelter, WASH, food);
• IT services and equipment; • Commercial consultancies; and
• Common support services.

Donors commit to:

5. Make joint regular functional monitoring and performance reviews and reduce individual donor assessments, evaluations, verifications, risk management and oversight processes.

Co-convenors: Japan and UNHCR