Monitoring and Evaluation in Humanitarian Aid: Quality Procedures

Monitoring and Monitoring and Evaluation in Evaluation in

Humanitarian Aid: Humanitarian Aid: Quality ProceduresQuality Procedures

PROJECT – STRAND 1 – Training and Capacity BuildingPROJECT – STRAND 1 – Training and Capacity Building

ANNEX IIANNEX II

BudgetBudget

in collaboration within collaboration with

Budget Budget formatsformats

BudgetBudget

ECHO – TYPES OF FUNDINGECHO – TYPES OF FUNDINGECHO funds two types of projects: ECHO funds two types of projects:

Total fundingTotal funding: ECHO funds 100% of the : ECHO funds 100% of the requested budgetrequested budget

Co-fundingCo-funding: ECHO co-funds the project with : ECHO co-funds the project with another donoranother donor

BudgetBudget

The Budget:The Budget: Is based on three types of different formatsIs based on three types of different formats

Presents significant differences with respect Presents significant differences with respect to the former FPA (a new conception)to the former FPA (a new conception)

The concept of The concept of lumpsumlumpsum disappears (except disappears (except for indirect costs and the Reserve)for indirect costs and the Reserve)

Is sub-divided into Titles, Chapters, Articles Is sub-divided into Titles, Chapters, Articles and Elementsand Elements

BudgetBudget

Budget: 3 types of formatsBudget: 3 types of formats

Budget for Budget for Financial Financial

Request and Request and Interim Financial Interim Financial

ReportReport

Budget Budget summarysummary

(by the EC)(by the EC)

Budget for Budget for Final Final Financial Financial ReportReport

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

Total estimated budget Total direct costs of the OperationMaximum EC contributionPercentage of total eligible costs

Initial Modified Actual Budget

01 Goods & services delivered to the beneficiaries

01.01. Food Security01. 01.01. Basic food security01. 01.02. Other food distribution01. 01.03. Food for work01. 01.04. School feeding01. 01.05. Public Canteens01. 01.06. Agricultural activities01. 01.07. Livestock01. 01.08. Fisheries01. 01.80. Training, local capacity building01. 01.99. Other food and security

HeadingCode

BREAKDOWN OF EXPENDITURE - FINAL FINANCIAL REPORT

Unit price Total inCode Heading Quantity Unit Duration Unit in EUR EUR

01 TITLE : Goods and services delivered to the beneficiaries (direct costs)

01.01 Food Security01.01.01. 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

Initial Initial request request

and and InterimInterim

Final Final

request request

BudgetBudget

BudgetBudget

FORMAT FOR ECHO BUDGET PHASESFORMAT FOR ECHO BUDGET PHASES

Interim Financial Interim Financial ReportReport

Pre-final Pre-final Narrative Report Narrative Report (> 6 months, except (> 6 months, except Primary EmergencyPrimary Emergency and and EmergencyEmergency))

Final Financial Final Financial ReportReport

Budget Budget BreakdownBreakdown

Budget Summary Budget Summary and Financial and Financial PlanPlan

FIRST PHASE: FIRST PHASE: FINANCIAL FINANCIAL REQUESTREQUEST

SECOND SECOND PHASE: PHASE: INTERIM INTERIM REPORTREPORT

THIRD PHASE: THIRD PHASE: FINAL FINAL REPORTREPORT

BudgetBudgetDIVISION OF BUDGET IN TITLESDIVISION OF BUDGET IN TITLES

Title 0.3.Title 0.3. “Indirect “Indirect costs”costs”

Title 0.4.Title 0.4. “Contingency “Contingency reserve – pro reserve – pro memoria”memoria”

Title 0.1.Title 0.1. “Goods and “Goods and services delivered to services delivered to the beneficiaries”the beneficiaries”

Title 0.2.Title 0.2. “Supporting “Supporting costs”costs”

DIRECT COSTSDIRECT COSTS INDIRECT INDIRECT COSTSCOSTS

RESERVERESERVE

The division of the budget into titles is The division of the budget into titles is structured using a separation of direct structured using a separation of direct costs, indirect costs and reserve:costs, indirect costs and reserve:

The budget is structurated using codes of The budget is structurated using codes of 2, 4 , 6, 8 digits which must be followed in 2, 4 , 6, 8 digits which must be followed in

the presentation of the budget and the presentation of the budget and accountingaccounting

BudgetBudget

BUDGET STRUCTURE

DEFINITION LEVEL

CODE EXAMPLE DESCRIPTION NOTES

TITLE 2 DIGITS 01.[…]

Goods and services delivered to the beneficiaries[…]

The 2 digit budget is divided into 4 titles:01. and 02. Direct costs03. Indirect costs04. Reserve

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

ELEMENTS 8 DIGITS01.01.01.01.01.01.01.02[…]

Corn FlourVegetable 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)

BudgetBudgetEligible Costs, NEWEligible Costs, NEW

The new conception gives eligibility to The new conception gives eligibility to cost previously non-eligible:cost previously non-eligible:

Costs of offices on location (rent and Costs of offices on location (rent and office consumable & supplies)office consumable & supplies)

Personnel in headquarters (directly Personnel in headquarters (directly connected with operations)connected with operations)

Personnel in HQ for feasability studies Personnel in HQ for feasability studies (to concord with ECHO), monitoring and (to concord with ECHO), monitoring and evaluationsevaluations

Costs for conscienceness raising for EC Costs for conscienceness raising for EC operationsoperations

BudgetBudget

Non-eligible Costs, NEWNon-eligible Costs, NEW

In accordance with the new EU funding In accordance with the new EU funding norms from January 1, 2003 these are norms from January 1, 2003 these are no longer eligible: no longer eligible:

Costs calculated in forfait (except Indirect Costs calculated in forfait (except Indirect costs and Reserve)costs and Reserve)

Practical Practical application of application of

the budgetthe budget

Applications Applications ANNEX IIANNEX IISUMMARYSUMMARY

1.1. Principles of budget flexibility and Principles of budget flexibility and amendment proceduresamendment procedures

2.2. Times requested for the presentation of Times requested for the presentation of Financial Reports (Financial Reports (Financial Request, Interim Financial Request, Interim Financial Report, Pre-Final Narrative Report Financial Report, Pre-Final Narrative Report and Final Financial Reportand Final Financial Report))

3.3. Form requested for the presentation of Form requested for the presentation of Financial ReportsFinancial Reports

4.4. Sensible points and the “Trenino”: practical Sensible points and the “Trenino”: practical applicationsapplications

Applications Applications ANNEX IIANNEX II

1. BUDGET FLEXIBILITY AND AMENDMENT 1. BUDGET FLEXIBILITY AND AMENDMENT

A.A. ““Unilateral modification of the Budget by the Unilateral modification of the Budget by the NGO, notifying ECHO”NGO, notifying ECHO”

B.B. ““Exchange of written correspondence Exchange of written correspondence approved by ECHO” approved by ECHO”

C.C. ““Supplementary Agreement” Supplementary Agreement”


A. Unilateral modification of budget by A. Unilateral modification of budget by NGO notifying ECHONGO notifying ECHO

When ?When ?

A.A. The budget modifications introduced do not affect The budget modifications introduced do not affect a basic element of the Operationa basic element of the Operation;;

B.B. The financial impact is limited to a The financial impact is limited to a transfer transfer between Title 01 and Title 02 equal or inferior to between Title 01 and Title 02 equal or inferior to 15%15% of the total eligible direct costs, of the total eligible direct costs, independently of the use of the reserve.independently of the use of the reserve.


A. Unilateral modification of budget by A. Unilateral modification of budget by NGO notifying ECHONGO notifying ECHO

What type of procedure to follow ?What type of procedure to follow ?

Formalize a modification made in the Formalize a modification made in the Interim Interim ReportReport (if foreseen) and/or address a letter to the (if foreseen) and/or address a letter to the Field OfficerField Officer and and Desk OfficerDesk Officer of ECHO. Acceptance of ECHO. Acceptance is not required by ECHO in this case.is not required by ECHO in this case.

It is always advisable to inform ECHO in writing It is always advisable to inform ECHO in writing and to file the relative correspondence.and to file the relative correspondence.


B. Exchange of written correspondence B. Exchange of written correspondence approved by ECHOapproved by ECHO

When?When?A.A. For a For a transfer between Title 01 and Title 02 > 15%transfer between Title 01 and Title 02 > 15%

of the total eligible direct costs (Title 01. + Title of the total eligible direct costs (Title 01. + Title 02.), independently of the use of the reserve.02.), independently of the use of the reserve.

B.B. To request the use of the Reserve, in the case in To request the use of the Reserve, in the case in which funding had been granted in the Grant which funding had been granted in the Grant AgreementAgreement

C.C. Intend, for operational and/or contingency reasons, Intend, for operational and/or contingency reasons, to carry out a change affecting a significant to carry out a change affecting a significant element of the operation (location, beneficiaries, element of the operation (location, beneficiaries, sustainability);sustainability);

D.D. To request a change of the bank account used by To request a change of the bank account used by the HO.the HO.

E.E. Modification of indicators and source of Modification of indicators and source of verification.verification.


B. Exchange of written correspondence B. Exchange of written correspondence approved by ECHOapproved by ECHO

What type of procedure to follow?What type of procedure to follow?1.1. The NGO shall present a written request to ECHO The NGO shall present a written request to ECHO

duly founded and motivated (before such a request duly founded and motivated (before such a request is made to the Desk Officer of ECHO in Brussels it is made to the Desk Officer of ECHO in Brussels it should be discussed with the ECHO Field Expertshould be discussed with the ECHO Field Expert [1]))

2.2. Await the written confirmation by ECHO for Await the written confirmation by ECHO for acceptance or refusal of request (ECHO shall acceptance or refusal of request (ECHO shall respond within 15 days, in any case silence does respond within 15 days, in any case silence does not mean acceptance)not mean acceptance)

[1] in these cases correspondence with Field Expert and Desk Officer should be filed. in these cases correspondence with Field Expert and Desk Officer should be filed.


C. Supplementary AgreementC. Supplementary Agreement

When ?When ?

A.A. If the HO wants to request an EXTENSION of the If the HO wants to request an EXTENSION of the project implementation periodproject implementation period

B.B. If the HO wants to request a BUDGET INCREASE If the HO wants to request a BUDGET INCREASE justified by operative reasonsjustified by operative reasons

C.C. For co-financed projects, when a MODIFICATION OF For co-financed projects, when a MODIFICATION OF THE PERCENTAGE in the co-funding quota is THE PERCENTAGE in the co-funding quota is requested requested

D.D. For modification or inclusion in the agreement of For modification or inclusion in the agreement of an article 9 “specific conditions” (i.e. modification an article 9 “specific conditions” (i.e. modification or derogation to General conditions);or derogation to General conditions);


C. Supplementary AgreementC. Supplementary Agreement

What type of procedure to follow ?What type of procedure to follow ?A.A. The ONG shall present a written request to ECHO The ONG shall present a written request to ECHO

duly founded and motivated (before such request is duly founded and motivated (before such request is made to the Desk Officer of ECHO in Brussels it made to the Desk Officer of ECHO in Brussels it should be discussed with the ECHO Field Expert)should be discussed with the ECHO Field Expert)

B.B. If accepted ECHO shall respond to the NGO in writing If accepted ECHO shall respond to the NGO in writing within 15 days of receiving the request, sending an within 15 days of receiving the request, sending an amended amended Grant AgreementGrant Agreement (in any case, silence does (in any case, silence does not mean acceptance)not mean acceptance)

C.C. The amended The amended Grant AgreementGrant Agreement will become effective will become effective when signed by both parties (ECHO and NGO) and when signed by both parties (ECHO and NGO) and sent to ECHOsent to ECHO

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

Digit Title Initial Budget

15% of direct costs

- 15% + 15%

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 EXAMPLE “Budget flexibility and amendment”amendment”Initial budgetInitial budget

Unilateral modifications in budget notifying Unilateral modifications in budget notifying ECHOECHO

Exchange of correspondence with approval by

ECHO

Unilateral modification of budget by NGO notifying ECHO

EXAMPLE “Budget flexibility and EXAMPLE “Budget flexibility and amendment”amendment”


2. TIMES REQUESTED FOR THE 2. TIMES REQUESTED FOR THE PRESENTATION OF FINANCIAL PRESENTATION OF FINANCIAL REPORTSREPORTS

A.A. Projects of Projects of Primary EmergencyPrimary Emergency, , EmergencyEmergency and other projects with duration < 6 monthsand other projects with duration < 6 months

B.B. Projects with duration > 6 monthsProjects with duration > 6 months


A. Projects of Primary Emergency, A. Projects of Primary Emergency, Emergency & other projects with Emergency & other projects with

duration < 6 monthsduration < 6 monthsMANDATORY MANDATORY DOCUMENTSDOCUMENTS

WHENWHEN

Presentation of project proposalPresentation of project proposalBudget Budget BreakdownBreakdown

Interim Financial Interim Financial Report Report (+inventory)(+inventory)


At least one month before the end of At least one month before the end of implementation period, implementation period, unless otherwise unless otherwise specified in the specified in the Grant AgreementGrant Agreement

Within 6 weeks of end of Within 6 weeks of end of implementation period, implementation period, unless otherwise unless otherwise specified in the specified in the Grant AgreementGrant Agreement


B. Projects with duration > 6 monthsB. Projects with duration > 6 monthsMANDATORY MANDATORY DOCUMENTSDOCUMENTS

WHENWHEN

Presentation of project proposalPresentation of project proposalBudget Budget BreakdownBreakdown


Pre-Final Pre-Final Narrative Report Narrative Report (+inventory)(+inventory)


Usually halfway through project Usually halfway through project implementation periodimplementation period (date specified in (date specified in the the Grant AgreementGrant Agreement))

1 month before the end of project 1 month before the end of project implementation periodimplementation period

Within 3 months of the end of project Within 3 months of the end of project implementation periodimplementation period


1.1. The Report shall be presented The Report shall be presented using the standard using the standard formsforms supplied by ECHO in the same language of the supplied by ECHO in the same language of the Grant AgreementGrant Agreement

2.2. All Reports must be expressed All Reports must be expressed in Euroin Euro3.3. The EU may request further information which must The EU may request further information which must

be supplied be supplied within 30 dayswithin 30 days of the request of the request 4.4. Failure to respect expiration dates, without valid motivation, Failure to respect expiration dates, without valid motivation,

may cause cessation of the may cause cessation of the Grant AgreementGrant Agreement and is and is

considered a threat to the continuation of the FPAconsidered a threat to the continuation of the FPA

ATTENTIONATTENTION !

ApplicaTIONS ApplicaTIONS ANNEX IIANNEX II

3. FORM REQUESTED FOR THE 3. FORM REQUESTED FOR THE PRESENTATION OF FINANCIAL PRESENTATION OF FINANCIAL REPORTSREPORTS

A.A. Projects of Projects of Primary EmergencyPrimary Emergency and and EmergencyEmergency

B.B. Other projects with duration < or > 6 monthsOther projects with duration < or > 6 months


A. Projects of Primary Emergency and A. Projects of Primary Emergency and EmergencyEmergency

BUDGET BUDGET DEFINITIONDEFINITION

4 Digits4 Digits

6 6 DigitsDigits

8 8 DigitsDigits

MANDATORY MANDATORY DOCUMENTSDOCUMENTS

Budget Budget BreakdownBreakdown




B. Other projects with duration < or > 6 B. Other projects with duration < or > 6 monthsmonths

MANDATORY MANDATORY DOCUMENTSDOCUMENTS

BUDGET BUDGET DEFINITIONDEFINITION

6 Digits6 DigitsBudget Budget BreakdownBreakdown



6 6 DigitsDigits

8 8 DigitsDigits

Primary Primary EmergencyEmergency and and EmergencyEmergency

Fase III: Fase III: Final Final

Financial Financial ReportReport

Phase II: Phase II: Interim Interim Financial Financial ReportReport

• 4 digits4 digits• Use only format Annex IIUse only format Annex II• Do not fill in the Budget Do not fill in the Budget SummarySummary• Use only column INITIAL Use only column INITIAL Budget Budget

• 6 digits6 digits• Use only format Annex IIUse only format Annex II• Do not fill in the Budget Do not fill in the Budget SummarySummary• Highlight changes with the Highlight changes with the columns INITIAL/MODIFIEDcolumns INITIAL/MODIFIED• Insert amount Insert amount spent/committed in column spent/committed in column ACTUAL BUDGETACTUAL BUDGET

• At least 8 digitsAt least 8 digits• Use only format Annex IIUse only format Annex II• Do not fill in the Budget Do not fill in the Budget SummarySummary• Insert Cost and Element typeInsert Cost and Element type• Insert Insert Accounting Reference Accounting Reference N°N°

Other projectsOther projects< 6 months< 6 monthsPhase III: Phase III:

Pre- Pre-Final Final

Narrative Narrative ReportReport• Use format Annex II Interim Use format Annex II Interim

Financial Report (6 digits) in Financial Report (6 digits) in case of modifications case of modifications introduced into the budgetintroduced into the budget

Phase I: Phase I: FinanciFinanci

al al RequesReques

tt

• 6 digits6 digits• Use only format Annex IIUse only format Annex II• Do not fill in the Budget Do not fill in the Budget SummarySummary• Use only column INITIAL Use only column INITIAL BudgetBudget• Do not fill in “Special Do not fill in “Special Mandates” Mandates”

Phase IV: Phase IV: Final Final


Other projectsOther projects> 6 months> 6 months

DIGITDIGIT

Primary Primary Emergency,Emergency,

EmergencyEmergency, , other < 6 other < 6 monthsmonths

Fase III: Fase III: Final Final


Phase II: Phase II: Interim Interim Financial Financial ReportReport

• Presentation of project Presentation of project proposalproposal

• at least 1 month before at least 1 month before the end of the the end of the implementation period implementation period (with inventory)(with inventory), , Unless otherwise specified by Unless otherwise specified by the the Grant AgreementGrant Agreement

• within 6 weeks of the end within 6 weeks of the end of the project of the project implementation period,implementation period, Unless otherwise specified by Unless otherwise specified by the the Grant AgreementGrant Agreement

Other projectsOther projects> 6 months> 6 months

Phase III: Phase III: Pre- Pre-

Final Final Narrative Narrative

ReportReport• 1 month before the end of 1 month before the end of project implementation project implementation period (only narrative + period (only narrative + inventory)inventory)

Phase I: Phase I: FinanciFinanci

al al RequesReques

tt

Phase IV: Phase IV: Final Final


• Normally halfway through Normally halfway through the project implementation the project implementation periodperiod (date specified in the (date specified in the Grant Grant AgreementAgreement))

• Within 3 months of the Within 3 months of the end of project end of project implementation periodimplementation period

TIMINGTIMING

The The “Trenino”“Trenino”

Budget:Budget:InstrumentsInstruments

To facilitate the work an instrument was To facilitate the work an instrument was created to apply to the budget and created to apply to the budget and

accounting expensesaccounting expenses

Trenino

Instruments:Instruments:the the

“Trenino”“Trenino”

OBJECTIVEOBJECTIVE

““To facilitate writing the budget To facilitate writing the budget and the correct monitoring of and the correct monitoring of

accounting for expenses”accounting for expenses”

Instruments:Instruments:The The

“Trenino”“Trenino”

What it isn’tWhat it isn’t1.1. It is not an instrument to substitute It is not an instrument to substitute

ECHO documentsECHO documents2.2. It is not an instrument for planning It is not an instrument for planning

and controlling the activityand controlling the activity3.3. It is not an instrument for controlling It is not an instrument for controlling

expenses met in relation to expenses met in relation to programmed expensesprogrammed expenses

4.4. It is not an instrument for integrating It is not an instrument for integrating accounting & managing systems accounting & managing systems adopted by the single HOs adopted by the single HOs

Instruments:Instruments:the the

“Trenino”“Trenino”Contents Contents

1.1. A summary by topic of the funding A summary by topic of the funding information in the various FPA information in the various FPA documentsdocuments

2.2. Specific charts for each budget Article Specific charts for each budget Article with the purpose of:with the purpose of: Supplying information (cfr. ECHO Supplying information (cfr. ECHO

guidelinesguidelines)) Defining eligible expenses for each Defining eligible expenses for each

Chapter Chapter Define the vouchers for each article Define the vouchers for each article

of expenseof expense

The endThe end

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Monitoring and Evaluation in Humanitarian Aid: Quality Procedures

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