ANNEXES. Allocation Strategy Paper Annexes Myanmar Humanitarian Fund 2018 Second Standard Allocation
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1 MHF Allocation Strategy Paper - Annexes 1 Allocation Strategy Paper Annexes Myanmar Humanitarian Fund 2018 Second Standard Allocation ANNEXES Annex 1: MHF Operating Principles and Strategic Review... 2 Annex 2: Cross cutting issues when developing a project proposal... 3 Annex 3: MHF Budget Guidance... 5 Annex 4: Cluster/sector contacts Annex 5: List of acronyms... 12
2 MHF Allocation Strategy Paper - Annexes 2 Annex 1: MHF Operating Principles and Strategic Review The MHF Advisory Board agrees that funding allocations will prioritize projects that are in line with the following operating principles: reinforce existing capacity in affected areas with operational partners already in place, considering current mandates and activities; target sectors, activities and geographical areas prioritized in allocation strategy papers; strengthen the humanitarian development peacebuilding nexus; prioritize protection of civilians, ensuring the centrality of protection in all humanitarian action; ensure a conflict sensitive approach to all humanitarian action; encourage the use of cash based programming activities, when possible and appropriate; advocate for direct funding to implementing agencies, particularly national NGOs; integrate sectoral responses, when possible, through consortia of different organizations; encourage multi sector proposals for the same target population and geographical areas. Interventions supported by the MHF are to be consistent with basic humanitarian principles of humanity, neutrality, impartiality and operational independence. The principles of non discrimination and do no harm are applied at all times. All the submitted project proposals will be strategically assessed by the MHF Review Committee against the mentioned prioritization criteria, particularly looking at five main questions: 1. Strategic relevance: This aspect refers to the alignment of the proposal to the priority sectors, activities, target population and geographical areas identified in the allocation strategy paper, the demonstrated operational capacity and physical access to the affected population of the application organization, and the promotion of the humanitarian development peacebuilding nexus. 2. Programmatic relevance: This category is related to technical aspect of the proposal, i.e. the identification of needs including disaggregation of data by age, gender and diversity; the articulation of the logical framework, the risks analysis and the mitigation measures, the protection analysis, and the cash based programming approach, if any. 3. Cost effectiveness: This question looks at the proportion of budget related to direct, staff and other personal cost and start up costs. 4. Management and monitoring: This category focuses on the suggested monitoring activities including standard HRP indicators and accessible feedback and complaint mechanisms for beneficiaries. 5. Engagement with coordination. This last aspect refers to the participation of the applicant organization in the national or sub national coordination mechanism, including exchanges with clusters and sectors during the preparation of the project proposal. Priority consideration will be done to projects implemented directly or as sub implementing partners by national / local NGOs.
3 MHF Allocation Strategy Paper - Annexes 3 Annex 2: Cross cutting issues when developing a project proposal When developing a project proposal, MHF recommends considering several cross cutting issues that may help to elaborate a response, including the active participation in humanitarian coordination mechanisms, the community engagement, the protection mainstreaming and the questions related the cash based programming. Humanitarian Coordination and Community Engagement Planning and response activities should be mobilized in consultation with the existing coordination mechanisms (general coordination meetings and ICCG) and relevant cluster / sector coordinators at national and sub national levels, to ensure interventions are not duplicated and humanitarian needs are met in a coordinated manner. Proposal development and implementation activities will be undertaken in close coordination with the affected communities, including camp management committees and host communities. Project proposals should include provision of accessible and functioning feedback and/or complaint mechanisms for beneficiaries, including those identified as vulnerable groups. Protection Mainstreaming The MHF is fully committed to a protection mainstreaming approach in all the phases of the project management cycle, as the process of incorporating protection principles and promoting meaningful access, safety and dignity in humanitarian aid 1. The following elements must be considered in all humanitarian activities: a) Prioritize safety and dignity, and avoid causing harm: Prevent and minimize as much as possible any unintended negative effects of your intervention which can increase people's vulnerability to both physical and psychosocial risks. All proposals should include a conflict sensitivity analysis to ensure that any harm or aggravation of the current situation between communities is prevented. b) Meaningful access: Arrange for people s access to assistance and services in proportion to need and without any barriers (e.g. discrimination). Pay special attention to individuals and groups who may be particularly vulnerable or have difficulty accessing assistance and services, considering age, gender and diversity questions. c) Accountability: Set up appropriate mechanisms through which affected populations can measure the adequacy of interventions, address concerns and complains, and see these responded to. d) Participation and empowerment: Support the development of self protection capacities and assist people to claim their rights, including not exclusively the rights to shelter, food, water and sanitation, health, and education. Gender Marker / Gender with Age Marker Promoting gender is a mandatory requirement for partners applying to MHF. While the OCHA CBPF Section is already working on ensuring that the update of the online GMS is compliant with the new Gender with Age Marker 2, 1 Further information at: of responsibility/protection mainstreaming.html 2 The new IASC Gender with Age Marker here:
4 MHF Allocation Strategy Paper - Annexes 4 which use will be required for UN and partner projects applying for funds for the 2019 Humanitarian Program Cycle, the Gender Marker code system equality (with a minimum of 2A/2B) will be still applied. Cash Based Programming The MHF encourages the use of alternatives to in kind programming as a response modality for partners with demonstrated technical capacity and strong knowledge and experience of cash transfer programmes. For the use of cash and voucher assistance, as part of the cross sector approach 3, organizations must prepare a protection risk analysis to ensure that cash can be used for its intended purpose and to mitigate any negative consequences. Partners must also provide information on the functionality of the markets and financial service providers, and demonstrate that cash will be equally accessible to men and women, according to vulnerability criteria established for each cluster and, as relevant, cross cluster. Cash feasibility studies and post distribution monitoring activities should be inclusive of the views of women and other vulnerable groups, to adapt implementation if necessary. Consultations with affected communities should be undertaken throughout all phases of the programme cycle. Projects which can demonstrate the following evidence based analysis of the feasibility of their cash based programme will be positively scored: Functionality of the market, dynamism of the market. Availability and quality of goods (related to the scale of the intervention and sectorial needs). Mapping of the market and location of the beneficiaries. Physical, political and social access to the market for beneficiaries. Acceptance of cash in the community and by the local authorities / Government. Mapping of financial service providers and physical, social and political access to beneficiaries Global risk analysis (institutional, programmatic, contextual). 3 These activities will be supported by the Cash Working Group. Information on existing guidelines and addition resources can be find at: based programming resources
5 MHF Allocation Strategy Paper - Annexes 5 Annex 3: MHF Budget Guidance The objective of this section is to provide partners, OCHA Country Office, HFU and OCHA headquarters with a common framework to facilitate the appropriate preparation, review and clearance of project budgets. In particular, this guidance focuses on defining eligible and ineligible costs, direct and indirect costs (e.g. Programme Support Costs PSC), shared costs, budget categories and the adequate break down of budget lines. This guidance applies to all partners, UN agencies including IOM and NGOs Rationale and Basic Principles of the Project Budget A clear segregation of duties underpins the preparation, review and clearance of the project budget. This is critical to preserve the country driven nature of CBPFs and necessary to ensure central and internal controls to reduce the risk of approving erroneous or inappropriate project budgets (e.g. miscalculations, inconsistency, and lack of transparency or admission of ineligible costs). In this regard, fund managers in the field, certifying finance officers at headquarters, and partners have specific roles and responsibilities, as follows: Fund managers are responsible to ensure that: a) The principles of economy, efficiency, effectiveness, transparency and accountability are adhered to in the sense that the project budget inputs are commensurate with the planned activities and the expected outputs, more specifically, that the project budget is a correct, fair and reasonable reflection of the project proposal/logical framework. b) The cost estimates are reasonable in the specific country context so that funding will be used in the most efficient way. The role of certifying finance officers in headquarters is to: a) Verify the budget s factual correctness, checking coherence with the project proposal and logical framework. b) Flag concerns and seek clarification from fund managers on issues that may compromise compliance with UN rules and affect financial transparency and accountability. The role of implementing partners in the budgeting process is to: a) Provide a correct and fair budget breakdown of planned costs that are necessary to implement activities and achieve the objectives of the project. b) Use and comply with the budget template (Annex 06: Project Budget and Financial Reporting Tool) and guidance provided by OCHA for the classification and itemization of planned costs. c) Provide a budget narrative (as an essential component of the budget) that clearly explains the object and the rationale of every budget line. For example, shared costs, expensive assets, and costs/equipment required to support the regular operation of the partner, are clear cases that require a budget narrative Eligible and Ineligible costs Eligible costs The following attributes define the nature of eligible costs: Must be necessary and reasonable for the delivery of the objectives of the project. Must comply with the principles of sound financial management, in particular the principles of economy, efficiency, effectiveness, transparency and accountability.
6 MHF Allocation Strategy Paper - Annexes 6 Must be identifiable in the accounting records and backed by original supporting evidence as incurred in accordance with the approved project proposal and period. These may include: All staff costs (including salaries, social security contributions, medical insurance, hazard pay (when applicable) and any other cost included as part of the salary benefits package of the organization. Salaries and costs may not exceed the costs normally borne by the partner in other projects. Costs for consultancies involved in the implementation of the project. Support staff costs at country level directly related to the project. Travel and subsistence costs directly linked to the project implementation for project staff, consultants, and other personnel that may also be eligible, provided the costs do not exceed those normally borne by the partner. A contribution to the partner s Country Office costs, as shared costs charged on the basis of a well explained calculation and reasonable allocation system. Shared costs must be itemized. The financial support to beneficiaries, including cash and voucher based distribution. Purchase costs for goods and services delivered to the beneficiaries of the project, including quality control, transport, storage and distribution costs. Costs related to non expendable items (assets) such as equipment, information and technology equipment for registration and similar field activities, medical equipment, water pumps and generators. Expenditure incurred by the partner related to awarding contracts required for the implementation of the project, such as expenses for the tendering process. Costs incurred by sub implementing partners, directly attributable to the implementation of the project. Other costs derived directly from the requirements of the grant agreement such as monitoring, reporting, evaluation, dissemination of information, translation and insurance, including financial service costs (in particular bank fees for transfers). Ineligible costs The following costs are ineligible: Costs not included in the approved budget (taking into consideration duly approved budget revisions). Costs incurred outside the approved implementation period of the project (taking into consideration duly approved no cost extensions). Expenditures over and above the approved total budget. Costs that do not have supporting documentation. Costs that are not covered by the MHF budget guidelines. Debts and provisions for possible future losses or debts. Interest owed by the implementing partner to any third party. Items already financed from other sources. Purchases of land or buildings. Currency exchange losses. Cessions and rebates by the implementing partner, contractors or staff of the implementing partner of part of declared costs for the project. Government staff salaries. Hospitality expenses, provision of food/refreshments for project staff (not including water and hospitality for trainings, events and meeting directly related to project implementation). Incentives, mark ups, gifts to staff. Fringe benefits such as cars provided by the organization to staff, individual full housing allowance and the like. Fines and penalties. Duties, charges, taxes (including VAT) recoverable by the implementing partner.
7 MHF Allocation Strategy Paper - Annexes 7 Global evaluation of programmes. Audit fees/system audit fees these costs are paid directly by the fund. 4 Other Types of costs On a case by case basis and depending on the objectives of the fund, the fund manager retains the flexibility to consider the following costs as eligible: Government staff training as a component of a project activity that contributes to the achievement of the overall project objectives. Visibility material of the implementing partner directly related to projects funded by the MHF. International travel costs when directly linked to the delivery of the project objectives. When international travel costs are requested to support additional activities outside those of the project, such costs can only be considered if they are well justified and in the proportion attributable to the project. Vehicles. Depreciation costs for non expendable/durable equipment used for the project for which the cost is not funded in the current budget or prior the MHF funding. Equipment for the regular operations of the implementing partner. Recurrent costs for the implementing partner s current operations Direct and Indirect Costs There are two categories of eligible expenditures: direct costs and indirect costs. Direct Costs Direct costs must be clearly linked to the project activities described in the project proposal and the logical framework. They are defined as actual costs directly related to the implementation of the project to cover the costs of goods and services delivered to beneficiaries, and the costs related to the support activities (even partial, such as a security guard or a logistician partially working for the project), required for the delivery of services and the achievement of the project objectives. Direct costs include: Staff and related personnel costs, including consultants and other personnel. Supplies, commodities, materials. Equipment. Contractual services. Travel costs, including transportation, fuel, and daily subsistence allowances for staff, consultants and other personnel linked to the project. Transfers and grants to counterparts. General operating and other direct costs including security expenses, office stationary, and utilities such as telecommunications, internet, water, electricity, office rental and other direct costs, including expenses for monitoring, evaluation and reporting, related to the implementation of the project. Indirect Costs Indirect costs are referred to as Programme Support Costs (PSC). PSC are all costs that are incurred by the implementing partner regardless of the scope and level of its activities and which cannot be traced unequivocally to specific activities, projects or programmes. These costs typically include corporate costs (i.e. headquarters and statutory bodies, legal services, general procurement and recruitment etc.) and assets that are not related to 4 Those costs are charged as a direct cost for the management of the fund.
8 MHF Allocation Strategy Paper - Annexes 8 service provision to a project. PSC is charged as a maximum 7 per cent of the approved direct expenditures incurred by the implementing partner. Programme Support Costs of sub implementing partners associated to the implementation of a specific project should be covered by the overall maximum 7 per cent of the actual project expenditures. Indirect costs do not have to be itemized in the project budget Shared Costs Sharing costs between different donors and projects under a country programme of an implementing partner is an acceptable practice for the MHF. The implementing partner may share certain Country Office costs to different uses and projects, for example staff, office rent, utilities and rented vehicles. The following guidance shall be observed when including shared costs in the project budget: All shared costs must be directly linked to the project implementation. All shared costs shall be itemized in the budget, following standard accounting practice and based on a welljustified, reasonable and fair allocation system, to be clearly explained in the budget narrative of the project and to be assessed and approved by the HFU in the OCHA Country Office. The implementing partner should at any time be able to demonstrate how the costs were derived and explain in the project proposal/logical framework how the calculation has been made (e.g. pro rata, averages). For staff related costs, if a position is cost shared, the percentage of the monthly cost corresponding to the time that the person will dedicate to the project shall be budgeted 5. It is not acceptable to have portions of a unit for staff costs, only percentages are acceptable. Non staff shared costs should be shared based on an equitable cost allocation system 6. Accordingly, the percentages in the budget are to be assessed and approved by the HFU in the OCHA Country Office. Shared cost, including staff related costs, should preferably be charged for the entire duration of the project. When this is not the case the rationale of the apportionment must be explained into the budget narrative Guidance on the Itemization of Budget Lines A project budget must be credible and in line with sound financial management principles. It should describe what the project proposes to do in financial terms and values. The budget review process will ensure that budgeted costs are correct, fair and a reasonable reflection of what is needed to carry out the project. Concerns in relation to compliance with UN rules and regulations and financial accountability must be addressed before projects is approved. Provide details in the remark section which serves as budget narrative so that the objective of the budget line can be clearly identified. 5 Cost shared staff positions whose existence is intended to last the entire duration of the project should be charged for the entire period and charged in percentage against the project (half of the cost of a guard, in a 12 month project, should be budgeted at 50% of the monthly salary for 12 months). Durations shorter than the project are acceptable only if the position is not intended to last for the entire duration of the project. When recording expenditures, the partner will retain the possibility to do it, within the budgeted amount, according the modalities that better suits its preferences (charging 100% of the guard for 6 months). 6 This should be calculated as a percentage against the overall amount of the shared cost and charged in percentage to the project. It is preferable to charge shared costs for the entire duration of the project. When recording expenditures, the partner will retain the possibility to do it, within the budgeted amount, according the modalities that better suits its requirements (e.g.: to cover half of the rent of an office in a 12 month project, the partner should budget the rent for 50% of the monthly cost for 12 month period. Then the partner retains the possibility to pay the full rent of the office for 6 months with the allocated budget).
9 MHF Allocation Strategy Paper - Annexes 9 Itemize each national and international staff, consultant and other personnel by function, and provide unit quantity and unit cost (monthly or daily rates) for each staff position 7. Roles and responsibilities must be clearly stated. If more than one position is lumped in one budget line, a breakdown and clearly defined roles and responsibilities should be provided in excel sheet that shall be uploaded under Documents tab. Must NOT exceed salaries and costs normally borne by the partner in other projects. The unit quantity should be a whole number and there should not be any decimal. The units, amounts and percentages indicated in remark section should be consistent with the budget. Classify D for direct costs 8, including staff, and S for support costs 9, including staff. There shall not be any acronym for the position which shall be standardized across the project proposal. The remark section shall include number of participants, beneficiaries, households, etc. who will benefit from supplies/trainings/construction. Any budget line which total value exceeds, but not limited to, $10,000 (as cumulative value) requires a clear explanation of the calculation in the budget narrative. When budget lines contain costs of multiple items (exceeding $10,000) a budget breakdown should be included in excel listing item, unit, quantity, value or cost (per unit and total cost. Documentation must be uploaded in the GMS under Documents tab. Provide unit or quantity (e.g. 10 kits, 1,000 metric tons) and unit cost for commodities, supplies and materials to be purchased. The budget narrative should properly reference unit measures (length, volume, weight, area, etc.). Provide technical specifications for items which unit cost is greater than $10,000. Provide technical specifications for items which unit costs can greatly vary based specifications (e.g. for generators, a reference to the possible range of power would be sufficient to properly evaluate the accuracy of the estimated cost). Provide list of items 10 and estimated cost per item for kits when the cumulative budget line value exceeds $10,000. Provide the list of items for globally standardized kits such as Post Exposure Prophylaxis kits and Interagency Emergency Health Kit. This does not include standard kits agreed upon in each country. Freight and transport costs should be clearly broken down such as weight of the supplies (kg, tonnage), size of the truck and number of trips or duration. To the best extent possible, unit cost for facilitators, venue, refreshments, stationaries shall be consistent. In the case of construction works exceeding $10,000, only labor costs and known essential materials may be budgeted and itemized, providing unit/quantity and unit cost. The budget narrative should explain how construction costs have been estimated on the basis of a standard prototype of building (e.g. latrine, health post or shelter), type of materials (e.g. wood, prefabricated or brick/cement/concrete) and the formula or rationale used to estimate construction cost (e.g. per square foot or meter or previous experiences). The budget line description field must be used to provide details of the nature of the contract and its intended outputs, showing how these are relevant to, and necessary for, project implementation. The description may 7 Staff positions must be charged per unit. If staff costs are only partially charged to the given budget this must be reflected in the percentage (50 per cent of a staff, and not half of a staff at 100 per cent). 8 Expenditures, including staff costs, directly related to the project e.g. (Programme personnel like health officers, WASH engineers, project monitoring costs, project related supplies, etc.) 9 Engaged expenditures, including staff costs, for support and administrative activities e.g. (general operating costs, e.g. office rental costs, communication costs; support staff costs, e.g. Grants Officer, Finance Coordinator, Human Resource Manager, Logistics Officer, etc.). These costs should be identified on a cost sharing basis. 10 The list should be provided as an annex to the budget
10 MHF Allocation Strategy Paper - Annexes 10 refer to the project log frame or activity plan as appropriate in order to clarify the rationale and justification for the contract. Itemize In country or International travel and position of the traveler, estimate number of trips and cost per trip. Travel costs can be estimated as long as the calculation modality is accurately described in the budget narrative (e.g. providing estimates on the number of trips and average duration in days, daily subsistence allowance rates, etc.). The cost for travel, per diem, daily subsistence allowance, etc. shall not exceed the costs normally borne by the implementing partner in other projects and should be within the market rates. The partner is responsible and accountable to ensure the budget(s) of the sub implementing partner(s) adheres to the principles of economy, efficiency, effectiveness and transparency. The partner must ensure the subimplementing partner(s) budget(s) are commensurate with the planned activities and outputs, and is reasonable in the specific country context. The sub implementing partner budget should be provided as a single line under the budget category Transfers and Grants to Counterparts. The breakdown details are not required to be provided in GMS budget. However, at the request of OCHA HFU and/or the auditors, the partner is responsible and accountable to provide the necessary detailed documentation to support the budget and expenditure incurred by the sub implementing partner. The sub implementing partner s budget and expenditure details must be available, if requested, at the same level of detail and format applicable to the main implementing partner. These documents must remain available for at least a period of 5 years after the project termination. Itemize general operating costs (e.g. office running costs, office rent, office stationeries, communication costs, bank charges, utilities such as water, electricity) for project implementation providing quantity and unit cost. A lump sum for operating costs is not acceptable. Where cost sharing arrangements are in place and the cost of any budgeted item shall not be fully charged to the project (i.e. where the item is paid for partially by the MHF and partially from other funding sources), preferably be budgeted throughout the entire project period. In case of a different period is used for the budget calculation, a clear explanation / justification should be provided in the description field. This applies equally to staff costs and other non staff costs such as rentals, utilities etc.
11 MHF Allocation Strategy Paper - Annexes 11 Annex 4: Cluster/sector contacts Cluster / Sector Name Contact Education in Emergencies Food Security Health Elisa Radisone Yukako Fujimori (Rakhine) Bharat Nayak (Rakhine) Kaung Myat Than (Kachin) Vincent Trinidad (Shan) Htu Bu (Shan) SoiLang Seng Andrea Berloffa TBC (Rakhine) TBC (Kachin / Shan) Dr. Win Bo Dr. Allison Gocotano (Rakhine) Dr. Thet Zaw Htet (Kachin) elisa.radisone@savethechildren.org yfujimori@unicef.org Bharat.Nayak@savethechildren.org kmthan@unicef.org vincent.trinidad@nrc.no humanitarian.metta.lso@gmail.com soilang.seng@wfp.org andrea.berloffa@fao.org bow@who.int gocotanoa@who.int htett@who.int Nutrition Myo Min Lwin Win Lae Lae (Rakhine) Htet Aung (Kachin / Shan) mmlwin@unicef.org wlae@unicef.org htaung@unicef.org Protection Geraldine Salducci Petruccelli Kathryn Lo (Rakhine) Andrew Mok (Kachin / Shan) salducci@unhcr.org lok@unhcr.org moka@unhcr.org Child Protection Cecile Marchand cmarchand@unicef.org Gender Based Violence Mollie Fair Miriam Ciscarblat fair@unfpa.org ciscarblat@unfpa.org CCCM/Shelter and Non Food Items Water, sanitation and hygiene Geraldine Salducci Petruccelli Richard Tracey (Rakhine) Deepika Bhardwaj (Kachin / Shan) Sunny Guidotti Asif Mahmood (Rakhine) Aye Win (Kachin) Toe Aung (Shan) salducci@unhcr.org tracey@unhcr.org bhardwajd@unhcr.org sguidotti@unicef.org amahmood@unicef.org awin@unicef.org toaung@unicef.org Thematic Advisors Name Contact Protection mainstreaming Geraldine Salducci Petruccelli Maitreyi Gupta salducci@unhcr.org guptam@unhcr.org Gender issues Marie Sophie Sandberg Pettersson marie.pettersson@unwomen.org Cash based programming Marc Gschwend marc.gschwend@wfp.org
12 MHF Allocation Strategy Paper - Annexes 12 Annex 5: List of acronyms AB CBPF CCCM ECCD FTS GA GBV GMS HC HCT HFU HRP IASC ICCG IYCF MHF MHPSS NFE NFI NGO OCHA PSC PSS RRM RSG SRH TB TLS TVET UN US$ WASH Advisory Board Country based Pooled Fund Camp Coordination and Camp Management Early Childhood Care and Development Financial Tracking System Grant Agreement Gender based Violence Grant Management System Humanitarian Coordinator Humanitarian Country Team Humanitarian Financing Unit Humanitarian Response Plan Inter Agency Standing Committee Inter Cluster Coordination Group Infant and Young Child Feeding Myanmar Humanitarian Fund Mental Health and Psychosocial Support Non formal Education Non food Items Non governmental Organization United Nations Office for the Coordination of Humanitarian Affairs Program Support Costs Psychosocial Support Rapid Response Mechanism Rakhine State Government Sexual and Reproductive Health Tuberculosis Temporary Learning Spaces Technical Vocational Education Training United Nations United State Dollar Water, Sanitation and Hygiene
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