Monitoring and
Evaluation in
Humanitarian Aid:
Quality Procedures
PROJECT – STRAND 1 – Training and Capacity Building
Introduction
in collaboration with
What it isn‟t
A fast course in PCM applied to emergency
An introductory course on ECHO
A course on strategies and methodologies
of humanitarian interventions
Objective
To facilitate the knowledge and correct
use of new ECHO procedures
elaborated with the new
Framework Partnership Agreement
therefore…
Show “know how”
Introduction to
the new FPA
Attention
It will come into force from Jan 1 2004
Preceding documents will no longer be valid
Its legal base still in Council Regulation of
June 20 1966 and in new financial provisions
in force since Jan 1 2003
Corresponds to:
The introduction of new EU Financial
Provisions from Jan 1 2003
Need for internal transparency in EC
Role of ECHO not only financial
Priority given to the quality of
operations
Attention
ECHO demands quality bonds:
The qualitative approach is not
optional
Centrality of indicators, procedure
application, results/objective
Basic philosophy
Quality of the proposals and work such
as:
Strict respect of ECHO procedure
Ability to show “know how”
Need to develop a preventive approach
from the identification phase to the end of
the operations
Official documents
FPA itself Preamble Provision
Annex 1.: Single form
Annex 2.: Budget
Annex 3.: Grant Agreement
Annex 4.: General Condition
Annex 5.: Rules & Procedures (Cont. & Proc.)
Support Documents
and guidelines
Single Form Guidelines
Log. Framework matrix and LF Guidelines
Single Form
Workflow matrix
ECHO manual for PCM
Budget Guidelines
Budget
Explanatory notes on Budget Documents
Glossary
Other
Cost-recovery schemes
Instruments proposed
by project ECHOTrain
Guidelines of the presentation of ECHO
financial annexes
Trenino
Guidelines for the statements of an
ECHO project
Script model for an ECHO project (single
Case study form, logframe, workflow, budget) in the
various phases:
Project proposal
Intermediate report
Pre-final report
Final report
FPA itself, Preamble
and Provisions
In collaboration with
About terminology
In keeping with the EC terminology
The NGOs of the north will be called
“Humanitarian Organisation” (HO)
Projects (humanitarian interventions)
will be called “Operations”
We will refer to the European
Commission (EC) instead of ECHO
FPA “itself”
FPA: the signature
It is the “contract” which is signed by the
representative of the EC and the HO
Defines the composition of official
documents
Defines “hierarchy” of the various
documents introduced
Hierarchy of the
documents
Preamble
Defines OBJECTIVES, PRINCIPLES & VALUES
shared by humanitarian aid
Provisions Define the goals of the partnership and the
GUIDELINES of the operations
Gen. Con. Define the General RULES for the
implementation of the operations
Gr. Agr.
Defines the framework
SPECIFIC to each operation
Preamble
Preamble
Defines the OBJECTIVES, PRINCIPLES, and VALUES shared by the
signatory parties
The role and added value of the NGOs in humanitarian operations is
knowledged
Specifies the role of ECHO in ensuring that the quality of its partners
and relative operations GARANTEE high levels of performance both in
terms of efficiency and accountability (monitorability and assuming
their responsabilities)
The purpose of the FPA is to define the RECIPROCAL roles in
implementing the operations
Affirms the need for reciprocal knowledge and respect for the
principles and statutes of all Parties
Provisions
Provisions
Define the criteria, objectives and general
rules of the FPA
Define the duration of the FPA (Dec. 31,
2007, art. 25)
Contain the regulations which have
significant affect on the HO‟s work
Provisions
Document structure
Title I Legal base and purpose of FPA
(5 articles)
Selection procedure and annual
Title II assessment of Partners; suspension and
(9 articles) loss of the condition of Partner
Title III Basic principles and objectives of the HO
(6 articles)
Title IV Monitoring of EC; evaluation; audit;
(5 articles) disputes between HO-EC; FPA duration
Provisions
Elements of interest
To optimise the implementation and the
results of the operations (art. 3.2.)
In accordance with the principles of
economy, efficiency and effectiveness
To set out SPECIFIC, MEASURABLE,
ACHIEVABLE, RELEVANT and TIMED
objectives
Monitoring the achievement of the
operations
Provisions
Elements of interest
Implementation of Partnership
(art 5) therefore
Adherence to codes of conduct
Fair working conditions for workers, volunteers or
salaried, with attention to their safety and their
professional development
Promotion of a learning culture based on evaluation
ECHO shall be invited to participate in meetings for
the exchange of information and co-ordination
ECHO will organise a Partners’ conference once a
year
ECHO will meet once a year with Partners to monitor
the implementation of the FPA
Provisions
Elements of interest
The HO is considered on its global capacity (Art. 8)
therefore
Determinating factors:
Results of previous operations financed by the
EC (not only ECHO)
Readiness to take part in co-ordination system
set up for humanitarian operations
Ability and readiness to work with humanitarian
actors and communities in third countries
ECHO will annualy evaluate that these criteria have
been met
Provisions
Elements of interest
Beside being non-profit, the Partner
must garantee minimum standards and
must submit and audit statement by an
external auditor referring to the last two
years of activity (art. 9-14)
therefore
There is a constant verification of work
Must subscribe to a code of conduct
The audit is obligatory
Suspension from the FPA is foreseen (in
serious cases)
Provisions
Elements of interest
The EC reserves the right to suspend the
FPA in the case of: (art. 13)
Failure to respect non-profit/HQ
conditions
Bankruptcy, serious misconduct, etc…
Conflict of interest
Misrepresentation in supplying
information
Provisions
Elements of interest
Beside principles of Humanity, Impartiality,
Neutrality and Indipendence emphasis is placed
on: (art. 17)
Allocation of funds according to the needs and needs
assessment and the promotion of the objective of
“responding globally to humanitarian needs”
Promotion of participation (in all phases)
Respect of culture, structure and local customs
Establishing a connection between relief,
rehabilitation and development (LRRD)
Working to strengthen capacities of communities
Provisions
Elements of interest
Visits, audits and evaluations are part of
ECHO‟s job (art. 21-25)
therefore
Evaluation becomes an important phase of the
operations
Both ECHO and the HO must garantee the
evaluation of the operations
The HO shall be able to include in its financing
request the cost related to this evaluation
providing in the proposal the terms of reference
[art 22.2.]
The HO shall garantee access to its accounting
documents to the EC (…)
Annexes
General Conditions (Annex IV)
Grant Agreement (Annex III)
Single Form (Annex I)
Budget (Annex II)
Procurament (Annex V)
in collaboration with
General
Conditions
Setting
The General Conditions:
Are an integral part of the Grant Agreement which
is stipulated between the Humanitarian
Organisation and ECHO for each single operation
Establish the rules which govern the humanitarian
operations
Are organised in 19 articles as follows:
General and Administrative provisions (1 – 14)
Financial provisions (15 – 19)
In particular
The GC define
General obligations
Priority of ECHO on type of intervention
Obligations and rights of the Parties
General provisions on defining the Budget
General provisions on transferring funds
GC: Highlights
Article1: General Obligations
highlights
The proposal shall be in accordance
with the standard forms annexed to
the FPA
The HO may act in partnership or
contract parts (not all) of the operation
The HO is fully responsible for the
execution of contracted activities
GC: highlights
Article 2: Information and financial & narrative reports
Highlights
The HO shall provide the EC with full information on
the implementations of the operation [particularly
it shall report on the indicators specified in the
proposal] [2.1.]
The reports (on ECHO forms and in same language
as GA) shall allow comparison of the objectives,
results and budget expected and/or obtained
[2.2./2.3.]
The HO shall send ECHO additional information on
request within 30 days of the request [2.5.]
Failure to fulfill terms of reporting may be the
cause for termination of the GA (reiterative failure
may be the cause of suspension of FPA) [2.6.]
GC: Highlights
Article 3/4/5: Liability, Conflict of interest,
Confidentiality
Highlights
The HO shall have sole responsability towards third
Parties (ECHO is discharged of all liability) [3.1., 3.3.]
The HO shall take all precautions to avoid conflict of
interests for any person under its responsability
The confidentiality of reports and other documents
classified as “confidential” is the responsability of the
Parties for a minimum of 5 years
GC:Highlights
Article 6: Visibility
highlights
The HO shall contribute to the visibility of the operations
financed by the EC, provided that this does not harm its
mandate or the safety of its staff
The HO should present a visibility plan within the
framework of the operations [6.2.]
Communications or publications by the HO shall display
the EU logo and shall quote EC contributions (% of the
contribution) with the note:
“this document has been produced with the financial assistance
of the European Community. The views expressed herein should not
taken, in any way, to reflect the official opinion of the European
Community”
GC:Highlights
Article 7: Ownership and use of Results and
assets
highlights
Unless otherwise specified in the Special Conditions the
equipment, vehicles and supplies purchased in the
framework of an Operation shall be transferred to local
authorities, partners or final recipients (excluding
commercial contractors) [7.3.]
The HO shall submit one month before the end of the
implementation period an inventory with a proposal
concerning the use of these stocks and equipment (the
EC shall respond within 15 days)
The HO shall give an account of the actual destination of
these stocks and equipment with documentary proof of
any transfer
In the event of failure to comply with the above
provisions, relevant costs shall not be eligible for funding
GC:Highlights
Article 8: Evaluation of the operation
Highlights
Representatives of the EC shall be invited to participate
in the main monitoring and evaluation missions
Evaluation missions by representatives of the EC shall be
object of mutual discussions and shall be planned in a
collaborative manner by the HO staff and EC
representatives
If provided with a resonable deadline, the EC will annex
the HO‟s comments to the final report
GC:Highlights
Article 9: Signature of Agreements
Highlights
The EC shall draft the Grant Agreement according to the
standard format and in conformity with the proposal
agreed by the EC shall send two signed originals (by
registered mail) to the HO
The HO shall notify in writing its acceptance within 15
days of receipt, and may not introduce changes in the
agreement
The GA shall be considered concluded and shall enter
into force on the date of reception by the EC of one
original signed and sent by registered letter
GC:Highlights
Article 10: Amendment of Agreements
Highlights
Any modification of agreement shall be set out in writing in an
amendment and shall be submitted one month before the end
of the implementation period of the agreement [10.1.]
By way of exception, the HO, when the financial impact is
limited to a transfer within a single budget title or a transfer
between budget titles involving a variation of 15% or less of
the amount originally entered of total direct costs, shall
INFORM the EC in writing (modification must not affect the
general terms of operation)
In case of change of bank account and use of contingency
reserve, the HO shall present a duly substantiated request
Any amendment to articles 2 and 3 of the Special Conditions
shall be subject of a supplementary agreement
In any case the original object of the agreement shall not be
modified
GC:Highlights
Article 11: Award of contracts
Highlights
Contracting arrangements will be as specified
in the proposal. The EC will also be informed of
changes in these arrangements and in any case
detailed information will be provided in the
final report
Procurement of goods, works, or services shall
be carried out in accordance with rules adopted
by the EC established in Annex V
In the event of failure to comply with above
provisions relevant costs shall NOT be eligible
for funding
GC:Highlights
Article 12/13: implementation period, suspension and
termination of agreement
Highlights
The implementation period of the GA shall be
as set out in article 2.2 of the Special
Conditions
Various causes for suspension and termination
of the operation are defined
Time periods regarding these aspects are
defined
Terms are set out in the Provisions and General
Conditions for the case of advanced
termination
GC:Highlights
Article 14: Disputes
Highlights
Parties shall communicate their positions to each other
in writing
A Party MUST reply within 30 days
If an amicable settlement has not been reached within
90 days, each Party may notify the other that it considers
the procedure to have “failed” and take the dispute
before the Court of First Instance of the EC
GC:Highlights
Article 15: Eligible costs
Highlights
The costs must be: NECESSARY, ACTUALLY BEEN
INCURRED in the implementation period and RECORDED
in verifible documents
Eligible costs are::
Staff (salaries and identifiable personnel costs at HQ level)
Expenditure related to constitution of stocks shall also be
eligible when incurred before the date of submission of the
proposal
Travel and subsistence costs for staff
Purchase costs for equipment (new and old)
Cost directly arising out of accepting or distributing
contributions in kind
Costs of consumables and supplies
Purchase costs for goods and services
Expenditure n contracting
Field office costs that correspond to amount of activity
attributable to Operation
Costs deriving from training, evaluation and documentation
Art 15 Continued
Highlights
Non eligible costs are those “standard” for EC
projects, such as:
Purchase of land or buildings
Taxes, duties (unless the HO is not able to reclaim
them)
Currency exchange losses
Etc.
Art 15 Continued
Highlights
Indirect costs are forfeited (max 7% of
total direct eligible costs = Title 01 +
Title 02)
A contingency reserve may be
exceptionally included in the budget and
shall not be higher than 5% of the direct
eligible costs (Title 01 + Title 02)
GC: Highlights
Article 16: Payments
Highlights
Are defined in articles 5 and 6 of the GA
Pre-financing shall be set at a level between 50% and
80% (>50% in special cases) of the sum referred to in
Article 3(2) of the Special Conditions less contingencies
The level of pre-financing will be set taking into account
the past record of the HO, as regards timely submission
of final report, budget execution rate and risk profile
Payment will be made within 45 days after receipt of GA
signed by HO
If interests represent a significant amount they shall be
reimbursed to the Commission
The EC will pay the final ammount within 45 days after
receipt of the final reports and narrative
If the EC does not deem the report correct or complete it
shall request additional information within a second 45
day period (intital deadline shall be suspended)
The HO may demand interest within two months of
receiving a late payment by the EC (rate supplied by
ECB)
GC: Highlights
Article 17: accounts and financial checks
Highlights
The HO shall keep all original documents (in exceptional
cases certified copies shall be allowed)
The HO agrees that the EC may have an audit to verify
appropriate use of funds by the HO and contractors (ECA
and OLAF shall enjoy the same rights)
GC: Highlights
Articles 18/19: final amount of Community financing and Recovery
Highlights
The total amount to be paid by the EC may not exceed
the maximum contribution established by the Special
Conditions
If co-financed, the % of funding will remain invariable
even in the case of a reduction in funding by the other
donor
Financial contribution of the EC may not in any
circumstance result in a profit for the HO
Where the operation is not carried out properly, in full,
the EC may reduce the grant pro-rata
Where recovery is justified, the HO undertakes to repay
the EC any amounts paid in excess within 45 days
Grant
Agreement
The Grant Agreement
Represents a signed agreement by the
parties in relation to a humanitarian
operation
Refers to a EC “decision” to allocate funds
following formality and general objectives
established by ECHO
Contains special conditions which rule single
interventions
Consists of 8 articles and 1 option
Althought it is the only document in force,
the new FPA version has differences
Enclosures include project document (Annex
1) and Budget (Annex 2) and refer to the
General Condition of FPA
Position of GA
GA: articles 1-3
It is emphasized that the agreement is valid
from the date of receipt by the EC of the GA
The starting date and period of the operation
are defined [2.2.]
It is requested to specify the total direct costs,
indirect costs, total eligible costs and the quota
% of the contribution
The starting date for expense eligibility is
inserted
GA: article 4
The Reports (2 paper copies + 1 electronic
copy) shall be presented in accordance with
following two Options
Option 1
Primary Emerg.,
Emergency and
other 6
months
GA: article 5
Payments: modalities must be specified in the
GA and are not automatic
Option 1
Costs cover at least
70% at interim and
initial request not >
50%
Other
cases
GA: articles 6, 7 e 8
Account number
Contacts (ECHO and HO)
Other specific conditions
(optional)
Complementary information
GC derogation
Single Form
the Single Form
A single form to ALWAYS use
for:
Project proposals (any type)
Interim Narrative Report
Pre final Narrative Report
Final Narrative Report
the Single Form
Preparation of the Single Form
requires knowledge of the ECHO
PCM manual
The following must be enclosed:
Logframe
Workflow
Map of the area
Other documents should be
enclosed as required by the
situation
the Single Form
„
Complexity of
the project
Focus on
Evaluability of
the project
SF: proposal
The SF is composed of 13 sections
All sections are completely filled in
to “convince” of the importance of
proposed operation
Less detail is required for
operations of primary emergency
and emergency
SF: proposal
The following points shall always be
respected
Maximum lenght 25 pages
Estimate of needs and definition of strategy
PCM log (objectives, indicators, sources)
Specific information (no repetition)
SF: “Sections”
2. Need Assessment
A precise stakeholders analysis is
required
Problem tree should be used as an
instrument to analyze and synthesize
problems
If an assessment exists it shall be
enclosed (at least a summary)
SF: “Sections”
3. HO Strategy
The presence of the HO in the country/area is
explained specifying:
Location, sectors, donors
Lessons learnt
Chosen strategy is discussed
Proposals shall always be discussed with
regional ECHO representatives
SF: “Sections”
4. Operational Framework
In general
Logical Framework mandatory
(max 3 pages)
Title of operation must not exceed 240
characters
Requirements inserted in SF must be
scrupulously respected
SF: “Sections”
4. Operational Framework
In Particular
Precise details are required for the
beneficiaries (number, type, category,
location…)
Identification criteria are clearly defined
Activities are sub-divided into sectors (budget,
categories)
SF: “Sections”
Continuing with sez. 4: the
objectives
General objective (called principle objective
here) shall be in line with the objectives
specified by the EC decision
Insert only 1 specific objective
Centrality of indicators (details for all
expected results) and monitoring mechanism
SF: “Sections”
5. Risks & Assumptions
External factors are explained and
monitored
The field safety situation is outlined
and, if they exist, specific protocols for
the operative context in question
SF: “Sections”
6. Resources Required
Local and expatriate staff are
divided (1 & 2)
Function is specified and
estimated costs discussed
Purchasing procedures are
detailed (goods, equipment)
SF: “Sections”
7, 8, 9. LRRD , Mainstreaming &
Visibility/communication strategy
The questions “substainability” and
“mainstreaming” are discussed
If there are funds for visibility the
expense must be justified (Visibility
Plan)
SF: “Sections”
10. Field Coordination and
local implementing Partners
Mechanisms of connection are
explained (Field coordination)
Procedures foreseen for contracts for
supplies, services and works are
defined (explaining if action different
from the EC procedure is taken and the
procedure to be followed)
SF: “Sections”
11, 12, 13. Financial &
administrative information &
conclusion
Basic information on the project
is stated
Space for conclusions and
comments
SF: Interim Report
The same format of the proposal
is used (Single Form)
It must state in detail progress
made STRICTLY following the
original plan
Logframe representing the
progress made is reported
SF: Interim Report
To change parts insert activities and
changes made, insert the phrase Not
Applicable in parts not modified
Section 4 becomes the most important
section with special attention to:
The beneficiaries
The indicators
SF: Interim Report
Special attention must be paid to:
Note the starting date of the operation and in
case of inserting a date different from that
specified in GA, give a reason
Request, with a justification, any eventual
extension of the implementation period
Do not modify in any way the specified
objective
Duly justify any inherent changes in budget
SF: Pre-final Report
Mandatory only for the types of
decision which call for it
Always the same format
Substantially similar in form and
objective to the Interim Report
SF: Final Report
Use the same format (Single
Form)
Defines the framework reached
at end of operation
The “rules” of filling it in remain
unvaried
SF: Final Report
Previously used methods for supplying
information are still valid
Extreme care must be made in filling the
Sections 4 (Operational Framework), 6
(Resources), 7 (LRRD), 8 (Mainstreaming) e
9 (Visibility)
All additional comments are to be made in
section 13
Indicators (levels reached), modifications
made to plan and possible impact are detailed
and discussed
All details of procedures followed for the
contract are supplied
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 Does not have details
Financial Request Unit, Quantity and Unit
and Interim
Financial Report
price
Budget summary Contains only items for
(by the EC) Titles and Chapters
Budget for Contains details Unit,
Final Financial
Report
Quantity and Unit price
BUDGET BREAKDOWN
Total estimated budget
Total direct costs of the Operation
Budget
Maximum EC contribution
Percentage of total eligible costs
Actual
Code Heading Initial Modified
Budget
Goods & services delivered to the
01
beneficiaries
01.01. Food Security
01. 01. 01. Basic food security
01. 01. 02.
01. 01. 03.
Other food distribution
Food for work
Initial
01. 01. 04.
01. 01. 05.
School feeding
Public Canteens request
and
01. 01. 06. Agricultural activities
01. 01. 07. Livestock
01. 01. 08. Fisheries
01. 01. 80.
01. 01. 99.
Training, local capacity building
Other food and security Interim
BREAKDOWN OF EXPENDITURE - FINAL FINANCIAL REPORT
Unit price Total in
Code Heading Quantity Unit Duration Unit in EUR EUR
TITLE : Goods and services delivered to the
01
request
beneficiaries (direct costs)
Final
01.01 Food Security
01.01.01. Basic Food security
01.01.02. Other food distribution
01.01.03. Food for work
01.01.04. School feeding
01.01.05. Public Canteens
01.01.06 Agricultural activities
01.01.07. Livestock
01.01.08. Fisheries
01.01.80. Training, local capacity building
01.01.99. Other food and security
Budget
FORMAT FOR ECHO BUDGET PHASES
FIRST PHASE: SECOND PHASE: THIRD PHASE:
FINANCIAL INTERIM FINAL
REQUEST REPORT REPORT
Budget Breakdown Interim Financial Pre-final Narrative
Report Report (> 6 months,
except Primary
Budget Summary Emergency and
and Financial Plan 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 RESERVE
COSTS
Title 0.1. “Goods and Title 0.3. “Indirect Title 0.4.
services delivered to costs” “Contingency
the beneficiaries” reserve – pro
memoria”
Title 0.2. “Supporting
costs”
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 DEFINITION CODE
DESCRIPTION NOTES
STRUCTURE LEVEL EXAMPLE
The 2 digit budget is divided into 4
Goods and services titles:
01. delivered to the
TITLE 2 DIGITS beneficiaries
01. and 02. Direct costs
[…]
03. Indirect costs
[…]
04. Reserve
01.01 Food security The 4 digit budget is divided into 22
CHAPTER 4 DIGITS chapters referring to title 1 (13) and
[…] […] 2 (9)
01.01.01 Basic Food Security The number of articles referring to
ARTICLE 6 DIGITS each chapter is varied
[…] […]
The nomenclature of the budget
proposed by ECHO does not exceed
01.01.01.01. Corn Flour 6 digits. The detail level
ELEMENTS 8 DIGITS 01.01.01.02 Vegetable oil corresponding to 8 digits is not
[…] […] coded, and is free (mandatory for
the presentation of the final financial
report)
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
Applications
ANNEX II
SUMMARY
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 Initial Budget
01. Goods and Services 750.000
01.02. Water & Sanitation 500.000
01.06. Non-food Items 100.000
01.13. Personnel 150.000
02. Support Costs 250.000
02.01. Personnel 130.000
02.02. Local Logistic Costs 70.000
02.03. Durable Equipment 30.000
02.06. Specialised Services 15.000
02.08. Visibility 5.000
03. Indirect Costs 70.000
04. Contingency Reserve 0
TOTAL 1.070.000
Unilateral modifications in budget notifying ECHO
Digit Title Initial 15% of - 15% + 15%
Budget direct costs
01. Goods & Services 750.000 150.000 600.000 900.000
02. Support Costs 250.000 150.000 100.000 400.000
EXAMPLE “Budget flexibility and amendment”
Unilateral modification
of budget by NGO notifying ECHO
Digit Chapter Initial Without change With change With change
Budget between Titles = 15% > 15%
TITOLO 01.
01.02. Water & Sanitation 500.000 350.000 450.000 500.000
01.06. Non-food Items 100.000 350.000 400.000 400.000
01.13. Personnel 150.000 50.000 50.000 50.000
TITOLO 02.
02.01. Personnel 130.000 180.000 50.000 25.000
02.02. Local Logistic Costs 70.000 50.000 25.000 7.500
02.03. Durable Equipment 30.000 20.000 25.000 7.500
02.06. Specialised Services 15.000 0 0 0
02.08. Visibility 5.000 0 0 0
TOTAL change between Title 01 and 02 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
Applications
ANNEX II
A. Projects of Primary Emergency, Emergency
& other projects with duration 6 months
MANDATORY WHEN
DOCUMENTS
Budget Breakdown Presentation of project proposal
Interim Financial Usually halfway through project
Report implementation period (date specified in
the Grant Agreement)
Pre-Final Narrative 1 month before the end of project
Report (+inventory) implementation period
Final Financial Within 3 months of the end of project
Report implementation period
Applications
ANNEX II
ATTENTION !
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 6 months
Applications
ANNEX II
A. Projects of Primary Emergency and
Emergency
MANDATORY BUDGET
DOCUMENTS DEFINITION
Budget Breakdown 4 Digits
Interim Financial 6 Digits
Report
Final Financial 8 Digits
Report
Applications
ANNEX II
B. Other projects with duration 6
months
MANDATORY BUDGET
DOCUMENTS DEFINITION
Budget Breakdown 6 Digits
Interim Financial 6 Digits
Report
Final Financial
Report 8 Digits
• 8 digits Phase I:
• Use only format Annex II Financial
Request • 6 digits
4
• Do not fill in the Budget Summary
• Use only format Annex II
• Insert Cost and Element type
• Do not fill in the Budget Summary
• Insert Accounting Reference N°
• Use only column INITIAL Budget
• Do not fill in “Special Mandates”
Fase III:
Phase IV:
Final
Financial Report DIGIT
Primary Emergency
Other projects
Other projects
6 months Phase II:
Phase III:
Pre-Final Interim
Narrative Financial Report
Report
• 6 digits
• Use format Annex II Interim
Financial Report (6 digits) in case of • Use only format Annex II
modifications introduced into the
budget • Do not fill in the Budget Summary
• Highlight changes with the
columns INITIAL/MODIFIED
• Insert amount spent in column
ACTUAL BUDGET
• within 6 weeks of the end of
Within 3 months of the end of Phase I:
the project implementation
project implementation period Financial
period, Unless otherwise specified Request
by the Grant Agreement
• Presentation of project
proposal
Fase III:
Phase IV:
Final TIMING
Financial Report
Primary Emergency,
Other projects
>Emergency,
6 months
other < 6 months
Phase III: Phase II:
Pre-Final Interim
Narrative Financial Report
Report
• 1 month before the end of Normally month before the
• at least 1 halfway through the
project implementation period end of the implementation
project implementation period
(only narrative + inventory) 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
Instruments:
the “Trenino”
Contents
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
FAQ
FAQ
In the course of the project execution you
decide to distribute wheat instead of rice as
you had intended. This has no negative effect
on the project. What procedure should you
use?
You should follow the procedure
?
“Unilateral modification with
notification to ECHO”
1. Formalize the modification made by a letter
addressed to the Field Officer and the Desk Officer
and in the Interim Report. It is not necessary to
receive authorization.
FAQ
Does ECHO indicate an ideal %
allotment of costs in Titles 01 and
02 (ex. Costs of supports must not
exceed 30% of the total project
cost) ?
?
NO, ECHO does not supply any
indication regarding this. In any case, it
is a good idea to evaluate a “just
proportion” between the two Titles.
FAQ
In the course of the project execution you
decide to work with a local partner different
than you had planned on without substantially
modifying the project. What procedure should
you use? ? ?
You should follow the procedure
“Unilateral modification with
notification to ECHO”
1. Formalize the modification made by a letter addressed
to the Field Officer and the Desk Officer and in the
Interim Report. It is not necessary to receive
authorization.
FAQ
You had planned on drilled wells for
supplying water to beneficiaries, but technical
reasons prevent this. You propose to supply
the area by truck – therefore the project
sustainability has failed. The cost is the same.
How do you act with ECHO ? ?
A modification in the sustainability of the
project is a critical change and must
be previously discussed with the Field
Expert to obtain authorization.
FAQ
Can formats different to those
issued by ECHO be used for the
presentation of the Budget in the
initial, interim & final phases ?
?
NO, the formats to be used (in the same
language as the Grant Agreement) are
those exclusively issued by ECHO for
each of the following phases:
Budget Breakdown
Interim Financial Report
Final Financial Report
FAQ
You budgeted a PM for a 12-month
project. Your PM has left and you decide
to hire a person until you can substitute
him. At project‟s end you have
employed 3 PMs. How do you justify
this? ?
ECHO gives full flexibility for use of funds
for personnel (principle of 15%).
However you must explain what
happened in the presentation of the
Interim Report. Overlapping is
reimbursed by ECHO if motivated and
considered appropriate.
FAQ
You want to move a % of total eligible
costs superior to 15% from Title 01 to Title
02 without negativity effecting a
fundamental element of the project. What
procedure should you use? ? ?
You should follow the procedure
“Exchange of letters”:
1. Formalize your intention to the Field Officer
2. Send a written request to the Desk Officer
3. Wait for a written answer from ECHO
FAQ
When presenting a project
proposal to ECHO do I fill out both
the Budget Breakdown and the
Budget Summary ?
?
No, I must fill out only the
Budget Breakdown.
The Budget Summary will be filled out by
ECHO and enclosed with the
Grant Agreement
FAQ
You want to ask to use the reserve
planned for your budget.
What procedure should you use ?
?
You should follow the procedure
“Exchange of letters”:
1. Formalize your intention to the Field
Officer
2. Send a written request to the Desk Officer
3. Wait for a written answer from ECHO
ANNEX V
ANNEX V
Defines the procedure to follow for contracts for the
purchase of services, supplies and work. The types of
purchasing procedures to follow are divided in
relation to:
Types of contracts (services, supplies and work)
Value of purchasing contracts for each type of
contract (services, supplies and work)
ANNEX V
The Annex is organized as follows:
Introduction General principles and structure of document
1. Definition of Objective of procedure and general principles
aim
2. Eligibility Criteria and causes for the inclusion or
criteria exclusion from the procedures
3. Common Basic rules for all procedures
rules
4. Types of Forms of procedures according to type of
contracts contract
5. Special rules Primary Emergency, Emergency, Stocks,
Procurament Centers, Co-funding…
ANNEX V
Contracts for supply, works and services have the
following characteristics:
A. Supply contracts
Property contracts Rent of land, existing buildings or other properties. ECHO can’t finance the
purchase of properties.
Supply contracts Purchase, leasing, rent or hire purchase, with the purchase option or not,
of products. The delivery of products can include settlement, installation
and maintenance expenses.
B. Work contracts
Work contracts They cover execution – or execution and design – costs of works, or
realization of work corresponding to the specific demand. A work is the
result of a construction work or of a civil engineering in its total, enough to
fulfil a technical or economic function.
C. Service contracts
w!
Ne
Service contracts They cover intellectual and non-intellectual service costs, which differ from
the ones covered by the supply and work contracts. They also include
study and technical assistance contracts.
ANNEX V
ATTENTION !
A contract which covers both the supplying of products and
services shall be considered a service contract whenever the
value of the services exceeds that of the products included in
the contract.
The same principle shall apply to define the procedure to be
followed in other hybrid contracts.
In the presentation of a project the NGO shall specify in
ANNEX I how it intends to follow the purchasing procedure.
Purchasing procedures implemented by the NGO beyond the
contracting procedures will be assessed in the audit.
ANNEX V
FORMS OF PROCUREMENT PROCEDURES
International Open
procedure
Restricted
Local Open
procedure
Restricted
Negotiated procedure
Single quote
Form Action Notes
Open International or local Tender procedures may be
publication of the tender international or local.
Procedure
notice and call for
expressions of interest (open Call of interest shall be open and
to all potential economic shall specify at least rules
governing the lodging/submission
operators)
and presentation of tenders,
exclusion, selection & award
criteria and set out in technical
specifications.
Restricted (1a) Call for expressions of Procedure may be international or
interest local.
procedure
(1b) Publication of contract
notice Only those candidates satisfying
selection criteria and invited may
(2) Invitation to tender
w! submit a tender.
(open to all who satisfy
Ne
selection criteria) The number of candidates invited to
(3) Selection of candidates submit a tender may not be less
(from list or those who than 4 (number shall be sufficient
answered the contract to ensure genuine competition.
notice)
Ne
Form Action Notes
Negotiated Simultaneous invitation Number of candidates shall not be less
and in writing by than 4 (number shall be sufficient to
Procedure
w! authorities to tenders to ensure genuine competition)
Ne
negotiate terms of
contract
Single quote 1 estimate gathering (a) in primary emergencies or emergency
operations (cfr. anche ANNEX V, cap. 5.1.). The
NGO must be able to present reasons that
prevented larger consultation;
(b) whenever no tenders have been
submitted in response to an open, restricted or
negotiated procedure after initial procedure has
been completed, provided original terms have
not been altered;
(c) whenever for technical reasons, or
reasons connected with the protection of
exclusive rights the contract can be awarded
only to 1 particular economic operator;
(d) for additional contracts consisting in
repetition/renewal of services, works, or
supplies;
(e) for additional works & services not
included in the original contract due to
unforeseen circumstances and necessary for the
performance of the contract;
(f) for property contracts after prospecting
the local markets
(g) whenever orders are placed with a
humanitarian procurement centre
(i) for contracts of a value < 5,000 €
ANNEX V
In the new FPA, ECHO makes distinction in supply
contracts between:
Form ECHO definition
A. Supplies subject to international quality
standards, and/or
B. Supplies relative to the implementation of
Dedicated activity in the field of health, nutrition,
water and sanitation.
Supplies
C. Exceptionally, products not available in
the country of the operation
Non-dedicated all those supplies not considered
commodities dedicated supplies
ANNEX V
ATTENTION !
The classification of all supplies as non-dedicated commodities
or dedicated supplies shall be made keeping in mind the
context in which the project is carried out. The availability of
goods in the country of the operation for example, may be
considered in order to classify a certain type of goods as
dedicated supplies when it must be imported.
The NGO shall always concord with the commission which
products are to be considered as dedicated supplies in a given
project.
ANNEX V
Supplies subject to international quality
standards
Form Quality standard required
Purchase shall be based on the pre-qualification of
Medicines pharmaceutical manufacturers who comply with
WHO Good Manufacturing Practice Guidelines
Standards for suppliers of medical equipment:
ISO 9001/EN46001 o ISO 9002/EN46002
Medical equipment
Council Directive 93/42/EEC del 14 Giugno
1993 (OJ L 169, 12/07/1993)
Always verify the existance of recognized
Other supplies international standard for each supply (above list is
neither definite nor complete)
SERVICES SUPPLIES WORKS
X ≥ 200,000 € X ≥ 150,000 € X ≥ 5,000,000 €
w!
Restricted international Open international procedure Open international procedure
Ne
procedure
w!
Suppliers invited: from a min. of
Ne
4 to a max of 8 suppliers
€ 30,000 ≤ X < 150.000 € 300,000 ≤ X < 5,000,000
w! A) Nondedicated commodities
Open local procedure
Ne
Open local procedure
B) Dedicated supplies
Restricted international
procedure
Suppliers invited: from a min. of
w!
4 to a max of 8 suppliers
Ne
€ 5,000 ≤ X < 200,000 Nondedicated commodities € 5,000 ≤ X < 300,000
Negotiated procedure € 5,000 ≤ X < 30,000
Suppliers invited: min. 4 Negotiated procedure Negotiated procedure
suppliers Suppliers invited: min. 4 Suppliers invited: min. 4
X < 5,000 € A) Nondedicated commodities X < 5,000 €
w!
Only 1 offer X < 5,000 € Only 1 offer
Ne
Only 1 offer
B) Dedicated supplies
X < 30,000 €
Only 1 offer
The end