GOAL Syria Vouchers Overview15 May 2014

TIME LINE

Beginning of Syrian Crisis

March 2011

October 2012

GOAL started working in Syria

First Voucher Program was implemented

inside Syria

April 2013

May 2014

Programme Type of vouchers HHs Individual

personnumber of

voucherValue of vouchers

SYP

OFDA 1 NFI vouchers 11242 67452 168630 1000

OFDA 2

Wintarzetion Vouchers 12014 72084 240280 1000Hygiene / cunsumble

vouchers 12014 72084 84098 1000

Fuel vouchers 500 3000 7500 7500Repair vouchers 500 3000 8523 7500

Irish Aid1 965 5790 101325 1000DFID 10037 60222 240888 1000

Wintarzetion Vouchers 12000 72000 180000 1000non sesonal vouchers 12000 72000 180000 1000

Fuel vouchers 500 3000 5000 7500

Repair vouchers 500 300016600 50005600 1000

Irish Aid2 unrestricted vouchers 1300 7800 19500 1000

ECHO unrestricted vouchers 1175 7050 17625 1000

VOUCHER PROGRMME ACTIVITIES

Security Features

• Vouchers then transported to field site. • Voucher design kept secret until shortly before distribution• Until they are assigned to a beneficiary, for a particular round, they hold no value. Shopkeepers are

only informed (and shown a copy) of the voucher for a particular distribution and shopping period, shortly before.

• Shopping period time is restricted to a certain number of days per voucher distribution round• Vouchers are assigned out to 1 beneficiary, and then scanned back in to PIMS when redeemed (this

is after the shopkeepers redeem them). Voucher redemption can be traced.

Vouchers traced through Programme Management Information System (PIMS)

Logistics use barcode scanner to enter voucher into PIMS, in Antakya office.

Security Features in Detail: MICR

Risk Impact Mitigation 1 Mitigation 2That the voucher programme causes inflation in local market due to surge in purchases

Beneficiary and non-beneficiaries have reduced purchasing power

1. Initial market assessment to determine if market has capacity to scale up to meet demand. 2. Regular Shop Price Monitoring

Comment: GOAL programme is not of a large scale and therefore risk is remote. Other market forces more likely to.

That the shopkeeper underestimate sales and therefore run out of stock

Beneficiaries do not have access to goods or that lower stock leads to rise in price

Shopkeepers given sufficient notice by GOAL of the date and amount of expected sales based on the purchasing power of vouchers distributed. This allows shopkeepers to buy in sufficient stock to meet demand.

2. GOAL pays shopkeepers quickly (within 2 days of sales maximum) in order to facilitate restocking by shopkeepers who may have limited/no credit lines with suppliers.

Contracted shops pay cash to beneficiaries at a cut price instead of the NFI items GOAL prioritised (eg $75 face value but shop keeper only gives benefic. $60)

Purchasing power of the vouchers to the beneficiary is reduced.

1. Terms of GOAL Shopkeeper Agreement 2. Spot check by GOAL monitoring team 3. Relief committee members and GOAL have visible presence in shops during the voucher sales period4. Select shops with a good reputation

1. Post distribution monitoring sample of 10-15% of beneficiaries. 2. GOAL complaints mechanism3. Removal of shops who abuse (revise master list) 4. Reporting of shopkeepers who abuse to the local council5. Approved price list are advertised outside the shop during Voucher sales5. RC and GOAL Team physical presence in shops during Voucher Fair

Contracted shops hike the prices temporarily for the voucher sales

Purchasing power of the vouchers to the beneficiary is reduced

1. Terms of GOAL Agreement 2. GOAL small price survey before sales. 3. GOAL Agreement with shopkeepers defines that price cannot go up in the week of the fair compared to pre Voucher prices.

Risk, Impact and Mitigation

Cont…

Counterfeit vouchers accepted by the shopkeepers and they seek to be paid by GOAL

GOAL is liable for more than the original budgeted amount. Angry shopkeepers.

Pre-numbered and unique (hologram) vouchers printed in varying colours shipped in (not locally printed). Format not available before the day of the voucher fair.

Contracted shops given sample on the first day of the voucher fair (not earlier).

Trader does not pay shopkeepers but tries to recoup full instructed payment amount from GOAL.

GOAL is liable to shopkeeper. Shopkeepers cannot restock and loss of trust in GOAL.

GOAL does not pay Trader who provides banking service until payment to shopkeepers has been confirmed by phone.

Also signed Payment Receipt provided by Trader before payment.

Misappropriation of funds by the Trader who is contracted to facilitate cross border payment by GOAL to the shopkeepers

GOAL loss of funds 1. GOAL only makes payment to the trader when Payment Receipt by shopkeepers are confirmed 2. GOAL maintains agreement directly with the shopkeepers and GOAL redeems/ counts the vouchers providing Voucher Redemption forms.

GOAL has a legally enforceable contract in Turkey with the Trader and can pursue through Turkish courts if necessary (deterrent)

Monopoly by 1 shop or Cartel by a few shops grouping together to remove competition by agreeing higher prices for voucher fair

Due to insufficient competition, beneficiaries have little choice when faced with higher than normal prices. Reduced purchase power.

1. Try to have at least 9 contracted shops and choose those who sell different mix of 3 goods categories so less incentive for price fixing on same items. 2. GOAL 3. Contract with shops defines that price cannot go up during 4 days of sales.

1. Post distribution monitoring sample of 15% of beneficiary HH’s.2. GOAL complaints mechanism3. Removal of shops who are caught/ identified

Shops substitute lower quality goods for the voucher fair so their margin increase

Beneficiaries get inferior goods and less value from voucher

‘1. Pre voucher prices assessment identifies price per brand on major items. ‘2. GOAL staff presence during sales.

Risk, Impact and Mitigation

- Note we do not do any cash programming at the moment. The closest thing we have is unrestricted vouchers (though there are non-eligible items – baby formula, alcohol, cigarettes) – but these are only redeemable at GOAL-shops. So beneficiaries are not able to buy everything with them. (ie. they would not be able to access medical care, for eg.)

- A wider point that the development of the voucher programme is designed to have less impact on markets where goods are available, vs. food distribution, or NFI distribution which can lead to shopkeepers ceasing to stock certain items.

Challenges and learning for GOAL Syria

Cont…

• - Unrestricted vouchers are very popular – give beneficiaries autonomy over what they buy – can do so according to need

• - Some reports of beneficiaries selling vouchers (for less than the voucher value) to get cash to pay for items that cannot be bought with vouchers (i.e. for medical care). When this is reported (if it is a shopkeeper buying them) then we can begin disciplinary procedures, but it is more difficult if not selling to the shopkeepers

• - Vouchers do have the potential to drive down prices in other non-GOAL shops / cause shopkeepers within the programme to raise prices – this is monitored through price monitoring in both GOAL and non-GOAL shops, and for GOAL shops, GOAL staff discuss fair pricing with both shopkeepers and the Relief Committees.

•

Challenges and learning for GOAL Syria