WORLD TRADE
ORGANIZATIONWT/IFSC/W/3
15 August 2001
(01-4016)
Integrated Framework Steering Committee
INTEGRATED FRAMEWORK TRUST FUND (IFTF)
 Pilot Phase of the Integrated Framework for
Trade-Related Technical Assistance to Least Developed Countries.
Terms of Reference
1. The Administrator of the United Nations Development Programme (UNDP) hereby
establishes a Trust Fund (hereinafter referred to as "the Fund")  under the financial regulations and
rules of the UNDP for the receipt and administration of funds and for mobilizing additional resources
needed to enhance the programme activities of the Integrated Framework for Trade-Related Technical
Assistance to Least Developed Countries (IF)1.  The Integrated Framework aims at mainstreaming
trade within national development strategies by promoting trade policies supportive of the poverty
reduction objectives of these countries, accelerating the integration of LDCs into the multilateral
trading system and the global economy and at developing national capacities.
2. The IFTF shall provide a central point for the deposit of contributions to the Integrated
Framework for Trade-Related Technical Assistance to Least Developed Countries.  Financialresources pledged to the IFTF will be managed by the Trust Fund under the authority of the
Administrator of UNDP.  Contributions could be pledged towards two windows operating
simultaneously: window I, a general fund, for un-earmarked contributions, or window II for
contributions allocated to specific and clearly identifiable programmes.  All UNDP standard rules,
regulations and procedures will be applied to the fund, including all aspects of activities, management
reporting and financial management and accounting.
3. The IAWG will  designate one or several Executing Agencies (hereinafter referred to as "the
Executing Agency ") for the implementation of each activity financed under the Trust Fund.
I. CONTRIBUTIONS TO THE FUND
4. Contributions to the Fund, in cash or in kind, may be accepted by UNDP from Government of
Member States of the United Nations, from the Specialized Agencies or from intergovernmental or
non-governmental organizations, or from private sources.
5. Contributions to the Fund may be made in any of the following forms:
(a) As voluntary contributions without limitation to a specific project or projects;
                                                     
1 The Integrated Framework was adopted by the High Level Meeting on Trade and LDCs organized by the WTO
in November 1997.  It is a joint initiative of the International Monetary fund (IMF), the International Trade Center (ITC), the
United Nations Development Programme (UNDP), the United Na tions Trade and Development Conference (UNCTAD), the
World Bank and the World Trade Organization (WTO).WT/IFSC/W/3
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(b) As contributions for the purpose of co-financing a specific project or projects to be
handled in accordance with UNDP's normal policies and procedures for third-party
cost-sharing arrangements;
(c) As contributions to a specific project or projects under a subsidiary trust fund
agreement entered into between the donor and UNDP in accordance with UNDP's
normal policies and procedures for the establishment of trust funds with specificdonors;
(d) As contributions to a specific project or projects under a management service
agreement entered into between the donor and UNDP in accordance with UNDP's
normal policies and procedures for the establishment of management service
agreements.
6. Contributions in cash to the Fund may be accepted by the Administrator in fully convertible
currency or in any other currency which the Administrator determines can be readily utilized.  Suchcontributions shall be deposited into bank accounts designated by UNDP.
7. The value of a contribution-payment, if made in other than United States dollars, shall be
determined by applying the United Nations operational rate of exchange in effect on the date of
payment.  Should there be a change in the United Nations operational rate of exchange prior to the full
utilization by the UNDP of the contribution-payment,  the value of the balance of funds still held at
that time will be adjusted accordingly.  If, in such a case, a loss of the value of the balance of funds is
recorded, the UNDP shall inform the Donor with a view to determining whether any further financing
could be provided by the Donor.  Should such further financing not be available, the assistance to be
provided pursuant to this Agreement may be reduced, suspended or terminated by UNDP.
8.   All financial accounts and statements shall be expressed in United States dollars.
II. UTILIZATION OF THE FUND
9. The Inter-Agency Working Group (IAWG)
2 when meeting as the Trust Fund will be chaired
by the Administrator of UNDP or his representative.  At these meetings, decisions will be made on
funding projects related to meeting the objectives of the Integrated Framework.  Details of such
projects, including the respective project budgets, shall be as set out in the relevant project documents.
10. In accordance with decisions and directives of the UNDP Executive Board, the fund will be
charged for support services provided by the Executing Agency, plus any costs incurred for
administering the fund.  The aforementioned costs will not exceed thirteen percent.
11. Any interest income derived from contributions to the fund shall be credited to the Fund in
accordance with the applicable UNDP regulations, rules and directives.
12. Management Service Agreements under the fund will be subject to a management fee as
charged by the executing agency against the funds to be paid by the donor.  Should there be an
increase in the scope, duration or character of th e activities initially undertaken, the executing agency
shall be entitled to a proportionate increase or a re-negotiation of its management fee.
                                                     
2 The governance structure of the IF is composed of a Steering committee (IFSC) and of an Inter Agency Task
force (IATF).   The Steering Committee is responsible for overall policy guidance and oversight of the operations of the IF.WT/IFSC/W/3
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III. ADMINISTRATION OF THE FUND
13. The Fund shall be administered by the UNDP in accordance with the applicable UNDP
regulations.
14. Project management and expenditures shall be governed by the regulations, rules and
directives of the UNDP and, where applicable, the re gulations, rules and directives of the executing
agencies.
IV. IMPLEMENTATION AND BUDGETING OF FUNDS
15. The aggregate of the amounts budgeted for the projects together with any estimated payments
in respect of support services shall not exceed the total resources available to the Fund.
16. If unforeseen increases in commitments or expenditures are expected or realized (whether due
to inflationary factors, fluctuation in exchange rates or unforeseen contingencies) the assistance to be
provided under the Fund may be reduced, suspended or terminated by UNDP.
V. OWNERSHIP OF EQUIPMENT, SUPPLIES AND OTHER PROPERTY
17. Ownership of equipment, supplies and other property financed from the Fund shall vest in
UNDP.  Matters relating to the transfer of ownership by UNDP shall be determined in accordance
with applicable policies and procedures of UNDP.
VI. AUDIT
18. The Fund shall be subject exclusively to the internal and external auditing procedures
provided for in the financial regulations, rules and directives of UNDP.
VII. REPORTING
19. The Administrator shall report to the Integrated Framework Steering committee (IFSC) on the
activities of the Fund.
20. The Administrator shall provide to the IFSC an annual report prepared in accordance with
UNDP accounting and reporting procedures, which report shall provide information on income and
expenditure incurred during the previous year.
21. If requested, the Administrator shall also provide reports to the donors having made
earmarked contributions for a specific country, group of countries or thematic areas.
VIII.  OTHER MATTERS
22. Notwithstanding the completion of the proj ects financed from the Fund any unutilized
balances shall continue to be held in the Fund acc ount until all commitments and liabilities incurred in
implementation of the projects have been satisfied and project activities have been brought to an
orderly conclusion.
23. The Fund shall terminate upon completion of all projects identified pursuant to this
Agreement and after satisfaction of all commitments and liabilities arising therefrom.  Any balance
then remaining shall be disposed of by the UNDP in consultation with the Donor(s).
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