Transcript Slides

Monitoring and
Evaluation in
Humanitarian Aid:
Quality Procedures
PROJECT – STRAND 1 – Training and Capacity Building
ANNEX II
Budget
in collaboration with
Budget
formats
Budget
ECHO – TYPES OF FUNDING
ECHO funds two types of projects:
 Total funding: ECHO funds 100% of the requested
budget
 Co-funding: ECHO co-funds the project with
another donor
Budget
The Budget:
 Is based on three types of different formats
 Presents significant differences with respect to the
former FPA (a new conception)
 The concept of lumpsum disappears (except for
indirect costs and the Reserve)
 Is sub-divided into Titles, Chapters, Articles and
Elements
Budget
Budget: 3 types of formats
Budget for
Financial Request
and Interim
Financial Report
Budget summary
(by the EC)
Budget for
Final Financial
Report
Does not have details
Unit, Quantity and Unit
price
Contains only items for
Titles and Chapters
Contains details Unit,
Quantity and Unit price
BUDGET BREAKDOWN
Budget
Total estimated budget
Total direct costs of the Operation
Maximum EC contribution
Percentage of total eligible costs
Code
Heading
01
Goods & services delivered to the
beneficiaries
01.01.
Food Security
01. 01. 01.
01. 01. 02.
01. 01. 03.
01. 01. 04.
01. 01. 05.
01. 01. 06.
01. 01. 07.
01. 01. 08.
01. 01. 80.
01. 01. 99.
Basic food security
Other food distribution
Food for work
School feeding
Public Canteens
Agricultural activities
Livestock
Fisheries
Training, local capacity building
Other food and security
Initial
Modified
Actual
Budget
Initial
request
and
Interim
BREAKDOWN OF EXPENDITURE - FINAL FINANCIAL REPORT
Final
request
Code
Heading
01
TITLE : Goods and services delivered to the
beneficiaries (direct costs)
01.01
01.01.01.
01.01.02.
01.01.03.
01.01.04.
01.01.05.
01.01.06
01.01.07.
01.01.08.
01.01.80.
01.01.99.
Food Security
Basic Food security
Other food distribution
Food for work
School feeding
Public Canteens
Agricultural activities
Livestock
Fisheries
Training, local capacity building
Other food and security
Quantity
Unit
Duration
Unit
Unit price
in EUR
Total in
EUR
Budget
FORMAT FOR ECHO BUDGET PHASES
FIRST PHASE:
FINANCIAL
REQUEST
Budget Breakdown
Budget Summary
and Financial Plan
SECOND PHASE:
INTERIM
REPORT
Interim Financial
Report
THIRD PHASE:
FINAL
REPORT
Pre-final Narrative
Report (> 6 months,
except Primary
Emergency and
Emergency)
Final Financial
Report
Budget
DIVISION OF BUDGET IN TITLES
The division of the budget into titles is structured
using a separation of direct costs, indirect costs
and reserve:
DIRECT COSTS
INDIRECT
COSTS
Title 0.1. “Goods and
services delivered to
the beneficiaries”
Title 0.3. “Indirect
costs”
Title 0.2. “Supporting
costs”
RESERVE
Title 0.4.
“Contingency
reserve – pro
memoria”
Budget
The budget is structurated using codes of 2, 4 , 6,
8 digits which must be followed in the
presentation of the budget and accounting
BUDGET
STRUCTURE
DEFINITION
LEVEL
CODE
EXAMPLE
DESCRIPTION
NOTES
The 2 digit budget is divided into 4
titles:
01. and 02. Direct costs
03. Indirect costs
04. Reserve
2 DIGITS
01.
[…]
Goods and services
delivered to the
beneficiaries
[…]
CHAPTER
4 DIGITS
01.01
[…]
Food security
[…]
The 4 digit budget is divided into 22
chapters referring to title 1 (13) and
2 (9)
ARTICLE
6 DIGITS
01.01.01
[…]
Basic Food Security
[…]
The number of articles referring to
each chapter is varied
Corn Flour
Vegetable oil
[…]
The nomenclature of the budget
proposed by ECHO does not exceed
6 digits. The detail level
corresponding to 8 digits is not
coded, and is free (mandatory for
the presentation of the final financial
report)
TITLE
ELEMENTS
8 DIGITS
01.01.01.01.
01.01.01.02
[…]
Budget
Eligible Costs, NEW
The new conception gives eligibility to cost
previously non-eligible:
Costs of offices on location (rent and office
consumable & supplies)
Personnel in headquarters (directly
connected with operations)
Personnel in HQ for feasability studies (to
concord with ECHO), monitoring and
evaluations
Costs for conscienceness raising for EC
operations
Budget
Non-eligible Costs, NEW
In accordance with the new EU funding
norms from January 1, 2003 these are no
longer eligible:
 Costs calculated in forfait (except Indirect costs
and Reserve)
Practical
application of
the budget
SUMMARY
Applications
ANNEX II
1. Principles of budget flexibility and amendment
procedures
2. Times requested for the presentation of Financial
Reports (Financial Request, Interim Financial
Report, Pre-Final Narrative Report and Final
Financial Report)
3. Form requested for the presentation of Financial
Reports
4. Sensible points and the “Trenino”: practical
applications
Applications
ANNEX II
1. BUDGET FLEXIBILITY AND AMENDMENT
A. “Unilateral modification of the Budget by the NGO,
notifying ECHO”
B. “Exchange of written correspondence approved by
ECHO”
C. “Supplementary Agreement”
Applications
ANNEX II
A. Unilateral modification of budget by NGO
notifying ECHO
When ?
A. The budget modifications introduced do not affect a basic
element of the Operation;
B. The financial impact is limited to a transfer between Title
01 and Title 02 equal or inferior to 15% of the total
eligible direct costs, independently of the use of the
reserve.
Applications
ANNEX II
A. Unilateral modification of budget by NGO
notifying ECHO
What type of procedure to follow ?
 Formalize a modification made in the Interim Report (if
foreseen) and/or address a letter to the Field Officer and
Desk Officer of ECHO. Acceptance is not required by
ECHO in this case.
 It is always advisable to inform ECHO in writing and to file
the relative correspondence.
Applications
ANNEX II
B. Exchange of written correspondence
approved by ECHO
When?
A. For a transfer between Title 01 and Title 02 > 15% of the
total eligible direct costs (Title 01. + Title 02.),
independently of the use of the reserve.
B. To request the use of the Reserve, in the case in which
funding had been granted in the Grant Agreement
C. Intend, for operational and/or contingency reasons, to
carry out a change affecting a significant element of the
operation (location, beneficiaries, sustainability);
D. To request a change of the bank account used by the HO.
E. Modification of indicators and source of verification.
Applications
ANNEX II
B. Exchange of written correspondence
approved by ECHO
What type of procedure to follow?
1. The NGO shall present a written request to ECHO duly
founded and motivated (before such a request is made to
the Desk Officer of ECHO in Brussels it should be
discussed with the ECHO Field Expert [1])
2. Await the written confirmation by ECHO for acceptance or
refusal of request (ECHO shall respond within 15 days, in
any case silence does not mean acceptance)
[1] in these cases correspondence with Field Expert and Desk Officer should be filed.
Applications
ANNEX II
C. Supplementary Agreement
When ?
A. If the HO wants to request an EXTENSION of the project
implementation period
B. If the HO wants to request a BUDGET INCREASE justified
by operative reasons
C. For co-financed projects, when a MODIFICATION OF THE
PERCENTAGE in the co-funding quota is requested
D. For modification or inclusion in the agreement of an article
9 “specific conditions” (i.e. modification or derogation to
General conditions);
Applications
ANNEX II
C. Supplementary Agreement
What type of procedure to follow ?
A. The ONG shall present a written request to ECHO duly
founded and motivated (before such request is made to the
Desk Officer of ECHO in Brussels it should be discussed with
the ECHO Field Expert)
B. If accepted ECHO shall respond to the NGO in writing within
15 days of receiving the request, sending an amended Grant
Agreement (in any case, silence does not mean acceptance)
C. The amended Grant Agreement will become effective when
signed by both parties (ECHO and NGO) and sent to ECHO
EXAMPLE “Budget flexibility and amendment”
Initial budget
Digit
Chapter
Goods and Services
01.
01.02.
01.06.
01.13.
02.
Initial Budget
750.000
Water & Sanitation
Non-food Items
Personnel
500.000
100.000
150.000
Support Costs
250.000
02.01.
02.02.
02.03.
02.06.
02.08.
03.
04.
Personnel
Local Logistic Costs
Durable Equipment
Specialised Services
Visibility
130.000
70.000
30.000
15.000
5.000
Indirect Costs
Contingency Reserve
70.000
0
TOTAL
1.070.000
Unilateral modifications in budget notifying ECHO
Digit
01.
02.
Title
Goods & Services
Support Costs
Initial
Budget
750.000
250.000
15% of
direct costs
150.000
150.000
- 15%
+ 15%
600.000
100.000
900.000
400.000
EXAMPLE “Budget flexibility and amendment”
Unilateral modification
of budget by NGO notifying ECHO
Digit
Chapter
01.02.
01.06.
01.13.
Water & Sanitation
Non-food Items
Personnel
02.01.
02.02.
02.03.
02.06.
02.08.
Personnel
Local Logistic Costs
Durable Equipment
Specialised Services
Visibility
Initial
Without change
Budget
between Titles
TITOLO 01.
500.000
350.000
100.000
350.000
150.000
50.000
TITOLO 02.
130.000
180.000
70.000
50.000
30.000
20.000
15.000
0
5.000
0
TOTAL change between Title 01 and 02
0
With change
= 15%
With change
> 15%
450.000
400.000
50.000
500.000
400.000
50.000
50.000
25.000
25.000
0
0
25.000
7.500
7.500
0
0
150.000
200.000
Exchange of
correspondence
with approval by
ECHO
Applications
ANNEX II
2. TIMES REQUESTED FOR THE
PRESENTATION OF FINANCIAL REPORTS
A. Projects of Primary Emergency, Emergency and
other projects with duration < 6 months
B. Projects with duration > 6 months
Applications
ANNEX II
A. Projects of Primary Emergency, Emergency
& other projects with duration < 6 months
MANDATORY
DOCUMENTS
WHEN
Budget Breakdown
Presentation of project proposal
Interim Financial
Report (+inventory)
At least one month before the end of
implementation period, unless otherwise
specified in the Grant Agreement
Final Financial
Report
Within 6 weeks of end of
implementation period, unless otherwise
specified in the Grant Agreement
Applications
ANNEX II
B. Projects with duration > 6 months
MANDATORY
DOCUMENTS
WHEN
Budget Breakdown
Presentation of project proposal
Interim Financial
Report
Usually halfway through project
implementation period (date specified in
the Grant Agreement)
Pre-Final Narrative
Report (+inventory)
1 month before the end of project
implementation period
Final Financial
Report
Within 3 months of the end of project
implementation period
ATTENTION
!
Applications
ANNEX II
1. The Report shall be presented using the standard forms
supplied by ECHO in the same language of the Grant
Agreement
2. All Reports must be expressed in Euro
3. The EU may request further information which must be
supplied within 30 days of the request
4. Failure to respect expiration dates, without valid motivation,
may cause cessation of the Grant Agreement and is
considered a threat to the continuation of the FPA
ApplicaTIONS
ANNEX II
3. FORM REQUESTED FOR THE
PRESENTATION OF FINANCIAL REPORTS
A. Projects of Primary Emergency and Emergency
B. Other projects with duration < or > 6 months
Applications
ANNEX II
A. Projects of Primary Emergency and
Emergency
MANDATORY
DOCUMENTS
BUDGET
DEFINITION
Budget Breakdown
4 Digits
Interim Financial
Report
6 Digits
Final Financial
Report
8 Digits
Applications
ANNEX II
B. Other projects with duration < or > 6
months
MANDATORY
DOCUMENTS
BUDGET
DEFINITION
Budget Breakdown
6 Digits
Interim Financial
Report
6 Digits
Final Financial
Report
8 Digits
• At least 8 digits
• Use only format Annex II
• Do not fill in the Budget Summary
Phase I:
Financial
Request
• Insert Cost and Element type
• Insert Accounting Reference N°
Phase
Fase III:
IV:
Final
Financial Report
Phase III:
Pre-Final
Narrative
Report
•6
4 digits
• Use only format Annex II
• Do not fill in the Budget Summary
• Use only column INITIAL Budget
• Do not fill in “Special Mandates”
DIGIT
Primary
Emergency
Other
Other projects
projects
and
< 6Emergency
months
• Use format Annex II Interim
Financial Report (6 digits) in case of
modifications introduced into the
budget
> 6 months
Phase II:
Interim
Financial Report
• 6 digits
• Use only format Annex II
• Do not fill in the Budget Summary
• Highlight changes with the
columns INITIAL/MODIFIED
• Insert amount spent/committed
in column ACTUAL BUDGET
• Within
within 63 weeks
monthsofofthe
theend
endofof
project
the
project
implementation
implementation
period
period, Unless otherwise specified
by the Grant Agreement
Phase I:
Financial
Request
• Presentation of project
proposal
Phase
Fase III:
IV:
Final
Financial Report
Phase III:
Pre-Final
Narrative
Report
TIMING
Primary
OtherEmergency,
projects
>Emergency
6 months ,
other < 6 months
• 1 month before the end of
project implementation period
(only narrative + inventory)
Phase II:
Interim
Financial Report
• Normally
at least 1 halfway
month before
through
thethe
end
of the
implementation
project
implementation
period
period
(with inventory),
(date specified in the Grant
Agreement
)
Unless
otherwise
specified by the
Grant Agreement
The “Trenino”
Budget:
Instruments
To facilitate the work an instrument was
created to apply to the budget and accounting
expenses
Trenino
Instruments:
the “Trenino”
OBJECTIVE
“To facilitate writing the budget and the
correct monitoring of accounting for
expenses”
Instruments:
The “Trenino”
What it isn’t
1. It is not an instrument to substitute ECHO
documents
2. It is not an instrument for planning and
controlling the activity
3. It is not an instrument for controlling
expenses met in relation to programmed
expenses
4. It is not an instrument for integrating
accounting & managing systems adopted by
the single HOs
Contents
Instruments:
the “Trenino”
1. A summary by topic of the funding
information in the various FPA documents
2. Specific charts for each budget Article with
the purpose of:
 Supplying information (cfr. ECHO
guidelines)
 Defining eligible expenses for each
Chapter
 Define the vouchers for each article of
expense
The end