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BestPracticesinWorkingwithLocalNGOsGrantNo.621G00100001300
PreparedforUSAID/Tanzania
By
MichaelF.Walsh
InsideNGO
March,2010
ThisstudyismadepossiblebythegeneroussupportoftheAmericanpeople
throughtheUnitedStatesAgencyforInternationalDevelopment(USAID).The
contentsare
the
responsibility
of
InsideNGO
and
do
not
necessarily
reflect
the
viewsofUSAIDortheUnitedStatesGovernment.
UtafitihuuimefanikiwakwamsaadawawatuwaMarekanikupitiashirikala
misaadalaMarekani(USAID).InsideNGOatawajibikanamatokeoyakazihii.
TaarifahiinimaoniyamtayarishajinasilazimayawakilishemaoniyaUSAIDau
SerikaliyaMarekani.
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Introduction
OnJanuary5,2010,USAID/TanzaniaawardedGrantNo.621G00100001300
toInsideNGOtocontributetotheMissionsprogramentitledBestPracticesin
WorkingwithLocalNGOs.CarriedoutbetweenJanuary6,2010andFebruary
5,2010,thegrantcalledfortheexaminationoftheapproachofthreeofthe
MissionsprimerecipientsAfricanMedicalandResearchFoundation
(AMREF),ElizabethGlaserPediatricAIDSFoundation(EGPAF),andPact
Tanzania thatmakesubawardsintheareaofHIV/AIDS.Mr.MichaelWalsh,
DirectorofProgramsforFinance,GrantsandContractsatInsideNGO,carried
outgrantrequirementsthroughacombinationofmaterialsreview;discussions
withtheheadquartersstaffofthethreerecipients;incountrydiscussionswith
USAID/Tanzania;andindepthinterviews,discussionsandRoundtableswith
thethreepartnersfieldofficestaff(inTanzania)andarangeofstakeholders;and
exitbriefingswiththemaswellaswithUSAID.Mr.WalshsfieldworkwasconductedJanuary25toFebruary5,2010.
Mr.WalshextendssincerethankstoUSAID,theirthreepartnerorganizations,
andallthoseinvolvedwithandinterviewedforthiseffortfortheircommitment
oftimeandtheirsupportandsharingofexperiencesthatleadtothisreportand
thefollowingkeyfindingsandrecommendations:
I.Programming/DesignIssues
1. DevelopbenchmarksleadingtomorecapableDistricts&Councils2. Managecashflowinterruptionswithmoreinformation3. Extendcommitmentbeyondannualprogramcycles4. DefinebenchmarksleadingtomorecapablelocalNGOs
II.Negotiation/Award
1. Investinoperationalsupporttoeffectivelymanagerisk2. Includecapacitybuildingconsiderationsinbestvalueaward
determinations
3. SettoneofcollaborationwithbroaderpartnercommunityIII.Implementation
1. Streamlineanddelegateadministrativeapprovals2. Harmonizereportingrequirements
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3. Conductauditsorreviewsregularlyratherthanattheendoftheactivity4. Mentoringbyprimesofsubrecipientsisessential5. Supportcoordination/collaborationamongprimesandlocalNGOs6. Trainingisacontinuousneed,butitrequiresatrainingstrategyand
alternativemodels
7. PlanforcloseoutandgraduationfromthebeginningandhighlightinthesubawardsandMOUswithLGAs.
Purpose
ThepurposeofthisstudywastoidentifyapproachesinwhichUSAID,prime
recipientsandtheirsubrecipientrelationships,strategiesandtacticscansupport
thegrowthandstrengtheningoflocalinstitutions. Thelessonslearnedandbest
practicesidentifiedwillsupportUSAID/TanzaniasHumanandInstitutional
CapacityDevelopment(HICD)activityundertheUSPresidentsEmergencyPlanforAIDSRelief(PEPFAR)program. Inadditiontorecommendationson
howUSAID/Tanzaniacanrefineitscurrentandfutureawardstofacilitate
capacitybuildingoflocalnongovernmentalorganizations(NGOs),thestudy
alsoconsidershowLocalGovernmentAuthorities(LGAs)canbemoreinvolved
insustainingtheselocalentities.
Background
Launchedin
2003,
the
initial
emergency
phase
of
PEPFAR
concentrated
on
meetingtheurgenttreatmentandcareneedsofpeoplelivingwithHIV/AIDS.
AsPEPFARbeginstofocusmoreonsustainability,USAID/Tanzaniawouldlike
tostrengthenitssupportoflocalNGOsandLGAs.
Approach
Thestudyfocusedontheworkofthreeprimerecipientsunder
USAID/TanzaniasHIV/AIDSprogram:
AMREF(AfricanMedicalResearchFoundation): The$2.1millionANGAZAZAIDIcounselingandtesting(CT)projecttoexpandthese
servicesthroughvoluntaryandmobileCT,especiallyremoteandhigh
riskgroupsandintegrateCTactivitiesmorecloselywithProvider
InitiatedTestingandCounseling.
ElizabethGlazerPediatricAIDSFoundation(EGPAF): The$4.6millionawardwith4NGO/FBOsand33DistrictsandMunicipalCouncilsto
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expandpreventingmothertochildtransmission(PMTCT)servicesthrough
trainingandsupportofthesestaffatprenatalclinicsandlaborwards.
PactTanzania: The$4.5millionJaliWatotoprogramtosupportorphansandvulnerablechildrenthroughlocalNGOsandMost
VulnerableChildrens(MVC)Committees.
AfterpreliminarymeetingswiththeseorganizationsinDaresSalaam,Mr.Walsh
traveledtofieldofficestomeetmoredirectlywiththestaffoflocalNGOs,FBOs,
CBOsandDistrictofficials:
AMREFsMoshiZonalOfficeandMaranguHospitalinKilimanjaroRegion
EGPAFsMoshiRegionalOfficeandtheMoshiMunicipalCouncil,aswellastheShinyangaRegionalOfficeandKahamaDistrictHealthOfficeand
DistrictHospital PactTanzaniaparticipantsworkinginTabora
Mr.WalshalsoconductedthreeRoundtablediscussionstogatherinput:
AMREFparticipants(15)inMoshi,includingparticipantsfromArushaRegionandKilimanjaroRegion
EGPAFComplianceOfficers(17) PactTanzaniapartners(13)anddistrictofficials(2)fromTabora,metin
Shinyanga
OverviewofProgramsAMREF EGPAF PactTanzania
Subaward
Program
description
ANGAZAZAIDI(toshed
morelight)isanextensionof
the7yearANGAZA(toshed
light)counseling&testing
program. AMREFhasbasic
supportpartnerswhoare
experienced,tiedtothe
Ministryof
Health
and
have
diversifiedfunding. AMREF
IntensivePartnersrequire
morecapacitybuildingand
closerM&E. Subawardeesare
supportedbydecentralized
zonalofficesstaffedbyateam
leader,aprogramofficeranda
EGPAFsPMTCTprogram
focusesonDistricts,
MunicipalCouncilsandafew
NGO/FBOhospitals.
ProgramandCompliance
staffregularlymonitorfrom
theirregionaloffices,
supplementedwith
Monthly
financialreportsand
quarterlyprogramreports.
Regionalstaffare
supplementedwith
Monitoring&Evaluation
personneltoassureproper
dataqualityaswellastimely
Pact/TanzaniasJaliWatoto
programmobilizeslocal
NGOs,volunteersandMost
VulnerableChildrens
Committeesatthevillage
level. LocalNGOswere
selectedthroughaninitial
twostage,
open
competition
withsupportfromPact
personnel. Awardsare
monitoredbyprogramand
compliancestafffromDares
Salaamandthesubmissiono
quarterlynarrativeanddata
reports.
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financeofficerwhoprovide
readilyaccessiblesupportand
guidance.
andaccuratereports.
Howdoes
the
mechanism
build
capacity?
Trainingisprovidedbasedon
theexpressedneedsofthe
local
partners.
The
training
is
supplementedwithclose
monitoringandmentoring.
Zonalstaffarereadily
available.
Trainingsaresupplemented
withregularmeetingsby
program
and
finance
staff.
Theyhaveconductedservice
deliverytrainingsprimarily,
buthavesupplementedthese
withproposalwritingand
planningworkshopsand
otherfinance/compliance
relatedtraining. TheDistricts
proposetraining,whichis
oftendrivenbychanges,
turnoverandexpansions.
Theworkshopsare
supplementedwithfaceto
facemeetingsrangingfrom1
3days.
Trainingandregularmeeting
supporttheworkandbuild
the
capacity
of
the
local
partners.Monthlyfinancial
reportsbuildgreatercapacity
whilemitigating
disallowances. Districtcoun
focalpersonsformost
vulnerablechildrenandMVC
Committeesatvillagelevel
haveallbeenincludedin
trainingreceivedbyNGO
partnersandvolunteers.
Capacity
outcomes
and
precipitating
factors
Fundinginterruptionsentailed
delaysandscalingbackof
activities. Somesubgrantees
havelearnedskillsinproposal
writingandhavesuccessfully
wonothergrants.
Reportingdemandsand
fundinginterruptionsare
distractions,whileleadership
isacriticaldeterminantof
success.
Mostsubawardeesare
improvingtheirabilityto
operatewithlesssupervision
Fundinginterruptionsaffect
activities.
RoleofGoT
andits
perceived
valueof
capacity
building
AMREFassuresthatlocal
partnerscoordinatetheir
activitiescloselywiththeDistrictoffices. A
decentralizedzonalapproach
reinforcesthisrelationship.
Supportivesupervisionis
carriedoutincollaboration
withtheDistricts. Annual
MOUsarenegotiatedamong
AMREF,thesubgranteeand
thelocalgovernment,
representingathreeway
partnershipfrom
the
beginningandavoidingthe
creationofatwoway
dependency.
TheDistrictspropose
training,whichisoften
drivenbychanges,turnoverandexpansions.Workshops
aresupplementedwithface
tofacemeetingsof13days.
PactassuresthatDistrictleve
officialsareinvolvedwithth
program. Theydliketoseemoreinvolvementofthe
districtsinassessmentsand
ongoingmonitoring. The
lackoffundsfordistrict
councilfollowupofMVC
programposesaparticular
challenge. Capacitybuilding
ofLGAsisunderfunded.
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OverviewofFindings
ThereisbroadappreciationforthePEPFARfundingamongtheDistrictofficials
andlocalNGOsinvolvedwithandinterviewedforthisstudy. Thisisoneofthe
firstpointstheyalwaysemphasizedinthediscussions. Theyrecognizethat
withoutthegenerosityofthedonors,theywouldnotbeabletodotheir
importantworkwithpeoplelivingwithHIV/AIDS.
Theprogramsarewellstructuredtoaccomplishtheintendedobjectives. The
linkageswiththegovernmentattheDistrictandCouncillevelsareemphasized
byallpartners. Theyclearlyunderstandandactivelyworktostrengthenthe
engagementofthedistrictlevelgovernment.
Whilethefundinglevelsandengagementoflocalgovernmentauthorities
supportthesuccessoftheprograms,thereareanumberofchallengesthatimpedethesustainabilityofthelocalpartners:
1. Disruptionsinfundingaresignificantsetbacksfororganizationstryingtosustainconstructiverelationshipswithcommunities.
2. Demandsofthedonorsforregularreportsimposeasignificantburdenonalreadystrappedhumanandtimeresources.
3. Expectationstoachieveimpactwithlimitedprogramfunds.4. Notoleranceoffinancialorcompliancefailures,whichwouldentail
significantdisallowances
or
penalties.
Nonetheless,thelocalNGOsandDistrictsareallstrivingtoservetheir
beneficiariesbetterwhilemeetingthedemandsofthedonors. Oneofthe
underlyingstrengthsoftheseorganizationsisthepartnershiptheydemonstrate
inworkingwithothers. Thereareconstructiveworkingrelationshipsextending
fromthedonors,downthroughUSAID,itsprimesandsubawardees. Anumber
oftheprogramstaffinDaresSalaamobservedthatthereisgoodcollaboration
amongthedonorsatthenationallevelthatisimportanttothesuccessoftheir
sector. Further,allimplementingpartnersdescribedagoodworking
relationshipwiththeirAgreementOfficersTechnicalRepresentative(AOTR)andAgreementOfficer,whichisconsideredanessentialingredienttotheir
success. Further,verysupportiverelationshipswereobservedbetweenthefield
programandfinance/compliancestaffandthelocalentitiestheysupport.
DistrictofficialsandNGOstafffelttheycouldrelyontheprimesstaffto
respondtotheirinquiriesandconcerns.
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ThefollowingarerecommendationsforUSAIDtoconsiderinsupportingthe
capacitybuildingoflocalNGOsthroughprimecooperativeagreement
recipients. Asrequested,therecommendationsarecategorizedintermsofshort,
mediumandlongtermactionssothattheycanbemorereadilytranslatedinto
workandactionplans. ThediscussionisframedintermsofUSAIDs
programmingandgrantmakingprocess,startingwithprogramdefinitionand
designthenextendingtonegotiation/award,implementationandconcluding
withcloseout.
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I.Programming/DesignIssues
1.DevelopBenchmarksLeadingtoMoreCapableDistricts&Councils
TheDistrictsandMunicipalCouncilsarecentraltotheseprograms. Thelatest
OVCRFAhasacoherentandcomprehensivestrategicperspectiveonworking
withthelocalGovernment. TheengagementofthedonorsandtheDistrictand
Municipalentitiesiscritical. AspointedoutbyaMunicipalCouncilDirectorof
Health,theyvaluetheinvolvementofdonorsandinternationalNGOswhich
bringfocusedfundingandexpertise.Whilemanagementofthesestandalone
verticalprograms,isdemanding,theyaccepttheresponsibilitiesandthe
assistance,butworryaboutsustainingthemwithlimitedbudgetsandstaff.
OthershaveobservedthelimitedcapacityoftheLGAs. Forexample,onlytwoofficialsfocusonHIV/AIDSattheDistrictlevelandtheyareoftenbusy
attendingtrainings,meetingsandpreparingadministrativedocumentsand
reports. Inshort,theDistrictshaveinsufficientlytrainedstaff,inadequate
financial,procurementandreportingsystemsandashortageofcriticallogistical
supporttocoverawidegeographicarea. TheGlobalFundauditofGrantsto
TanzaniadatedJune,2009capturesthechallengesfacedandtheriskofrelying
tooheavilyonLGAsatthistime.
TheDistricts
and
Councils
will
need
to
take
on
added
responsibilities
to
support
theHIV/AIDSprogramsinthefuture. Butwhatformandfunctionswillthese
LGAshavetomanagetheseprogramsandhowwilltheysupporteachotheras
donorfundingreachesitslimits?WillfundingmovethroughtheDistricts?Will
awardsbemadetolocalNGOsthroughthePrimeMinistersOfficeofRegional
andLocalGovernments(PMORALG)? OrwilltheDistrictsleadandcoordinate
thefundsmanagedbyothers? Canthedonorbasketfund,whichtheLGAsare
familiarwith,beenhancedtosupporttheseefforts? Theseandotherquestions
mustbeansweredsoontoprovidesufficienttimetodevelopthecapacityof
theseentities.
EachDistrictandCouncilisatadifferentstageofcapability. Oftenleadershipis
acriticalfactor,butallarestrugglingwithhighturnoverratesandtheabilityto
manageacumbersomebureaucracy.RushingallLGAstodevelopbyacutoff
dateisunreasonable,sograduationshouldbebothstagedandstaggered.
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Recommendations
ShortTerm
o Encouragethebestpracticeofannualnegotiationof(nonmonetary)MemorandumsofUnderstandingamongtheprimepartner,sub
granteesandthelocalgovernment. Thisthreewaypartnershipdetails
oversight,routinesupervision,suppliestobeprovidedbytheLGA,
jointdevelopmentof12monthactionplanwithspecifictasks,joint
outreachactivities(andlogistics)aswellascapacitybuilding
milestonesandrelatedtrainingandassistance.
MediumTerm
o ReachagreementbetweenGoTandthedonorsonthecapabilitiestobedemonstratedbyDistrictsandMunicipalCouncilstopermitthemto
managedonorfundsmoreindependently.o Determineandappropriatelybenchmarkthestagesleadinguptothis
levelwithtechnicalassistanceandtrainingplannedandprovidedto
assureDistrictsprogress.
o Provideonthejobcompetencybasedtrainingprogramsthatleadtoactualqualificationsforstaffinvolved.
o IncludecriticalsystemsandorganizationaldevelopmentintheCCHPforeachDistrictandMunicipalCouncil.
o Encouragepartnerstoofferprogrammaticandbudgetinformationforinput
into
CCHPs.
2.ManageCashFlowInterruptionswithMoreInformation
Cashisthelifelineofthelocalpartners. Theyhavenobufferagainstfunding
interruptionsorreductions,whichareinevitable,butshouldbeminimizedover
thecourseofayear. USAIDandotherdonorsreceivetheirfundinglateintheir
budgetcycles,whichdelaysonwarddisbursementstotheprimerecipientsand
ultimatelythelocalNGOs. USAIDsreputationfortimelypaymentisbetterthan
otherdonors,butitsuffersfromoccasionaldelaysinobligationoffunds.
FewNGOshavesufficientunrestrictedfunds(i.e.nonFederal)tofinancegapsin
funding,especiallyiftheycannotbecertainthatUSAIDorotherdonorswill
comethroughwiththefunding,orwillcovercostsincurredbeforefundsare
available. ThePrimeNGOsarepursuingpublicprivatepartnershipsandother
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donorfunds,buttheagreementswillnotbesufficientorbroadenoughtocover
possiblefederalshortfallsorinterruptions.
DelaysalsooccuronthepartoftheprimeNGOsintheirprocessingofpayments.
OftenthelocalNGOhavedifficultycompletingalltherequiredreportsand
documentationinatimelyandaccuratemannertoassureregularpayments. The
primeNGOsprocesspaymentsthroughtheirheadquarterswhichmayentail
additionaldelaysifthereareanyquestionsraisedorglitchesintheirhandlingof
transactions. Thesedelayscanbeminimizediftherearesufficientfieldstaffto
supportlocalNGOsinaccuratelydocumentingtheirsubmission.
Whenfundingisinterrupted,localNGOssalariesgounpaid(describedbyNGO
staffasinvoluntaryvolunteering),fieldactivitiesgrindtoahaltasstaffdont
havefundsforfareorpetrol,andthevillagersareworryingiftheycanrelyon
theservicesandsupportoftheNGOs. Districtsexperiencesimilardelays,often3months,duetothemanylayersbetweentheLGAsandthecentral
authorities. Continuityisessentialforthecare&treatmentofHIV/AIDSandthe
supportoforphansandvulnerablechildren. Theimplementingpartnersat
everylevelareaffectedbyfundingcutsanddelays. Forexample,theAMREF
subgranteestaffexpressedconcerninthatinterruptionsanduncertaintyof
fundinghindersplannedandexpectedactivitieswhichdemoralizesand
discouragesmembersofthecommunityinconfrontingtheHIV/AIDSpandemic.
Providingmoreinformationpermitsthemtomanagemoreeffectivelytomitigate
theimpact
on
the
beneficiaries.
Recommendations
Shortterm
o Provideasmuchinformationassoonaspossibletotheprimesandsubrecipientsonthestatusoffundingsothatplansmaybeadjusted
andmitigatingactionscanbetaken. Timelynotificationmaypermit
thelocalpartnerstoextendimplementation,delayexpendituresand
manageexpectationsuntilfundingarrives.
o EncourageadequatestaffingoffinancialoversightinthefieldtoanticipateandmitigateproblemswiththelocalNGOs,ratherthan
overrelyonheadquarterstafftomonitorcomplianceaspartofthe
paymentprocess.
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3.ExtendCommitmentBeyondAnnualProgramCycles
EachdonorandtheGoThavetheirownannualprogrammingcyclesthatfocus
onquantifiableresults,butcapacitybuildingtakes57yearsanddoesnotlend
itselftoreadymeasurements. Theseannualcyclesarealsonotsynchronizedand
areoftenthrownoffwhenfundingisntprovidedasplanned.
Localentitiesmustwaitmonthsforfunding,whichcompressesa12month
implementationplanto10to8months,whichisverydisruptive. Notlongafter
theyreceivetheirannualfunding,theNGOmustthenbeginpreparingfora
proposaltorenew,withtheinherentuncertaintyofcontinuation. Oneyear
tranchesandtheefforttorenewaretransactioncoststhatdistractfromservice
deliveryandcapacitybuilding. Further,workingwithchildrenandpeople
livingwithHIV/AIDSentailsalongertermcommitment,wellbeyondthe35
yearawardsoftheprimes. Alocalpartnernotedthatiftheirprimecouldmakeformal,multiyearcommitments,theywouldreachfurtheranddevelop
complementaryservicesinthoseareas.Withoutalongertermcommitment,they
arehesitanttocommittheseservicesandthenriskdisappointmentbythe
beneficiaries.
Recommendations
Shortterm
oEncourage
the
primes
to
enter
into
longer
term
agreements
with
their
subrecipients,contingentuponavailabilityoffunds,(justasUSAID
doeswithitspartners)sothattheextensionprocesscanbefacilitated.
Longterm
o Whileannualprogramcyclescannotbechanged,USAIDshouldsupportconsistentfundinglevelsandlongertermagreementswiththe
primes.
4.Define
Benchmarks
Leading
to
More
Capable
Local
NGOs
CapacityBuildinghasbeenfocusedonservicedeliveryunderPEPFARI. To
sustainHIV/AIDSprograms,capacitybuildingmustbesupportedmorebroadly
toincludesupportoforganizationsandnetworks,enhancingmorethan
technicalskillstoincludeoperationalsupportandtheabilitytomanage,adapt
andevenadvocateasanorganization.
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LocalNGOshavelimitedresourcesorexpertisetoinvestintheirowncapacity
building. Subawardbudgetsareusuallyconfinedtoprogramimplementation,
withlimitedsupportformanagementoversight. Thereisalsonobroad
assessmentofthesector. Atbest,eachprimehasconductedreviewsofsub
recipientsinthecontextoftheirprogramactivity,leadingtoastovepipe
perspective. Annualormidtermassessmentsarealsoconfinedtosubrecipients
andtheirabilitytoperformthescopeofwork,ratherthandeterminetheir
progresstowardsasustainableentity.
Further,thedevelopmentstagesandendstatearenotcurrentlydefinedforthe
subrecipients. ThecurrentOVCRFAdefinesastandardthatthelocalNGO
shouldbeeligibletoreceiveUSAIDfundingdirectly. Thisstandardcanbe
definedintermsofUSAIDsresponsibilitydetermination,whichaccordingto
ADS303.3.9meanstheorganization:
o possesses,orhastheabilitytoobtain,thenecessarymanagementcompetencetoplanandcarryouttheassistanceprogram,
o canappropriatelyaccountforfundsandotherassetsprovidedbyUSAID,
o hasasatisfactoryrecordofbusinessintegrity,ando isotherwiseeligibleforaward(e.g.notonadebarredorOFAClist).
Theresponsibility
determination
standard
is
specific
to
the
work
to
be
performedintermsofmagnitude,complexityandduration. Itdoesnottakeinto
considerationthesustainabilityofthebroaderactivityortheneedfortheNGO
tocompeteforlimiteddonororGoTfunding.
Theprocessofincreasingthecapacityoflocalentitiesmustreinforceasenseof
ownershipoftheissuestoassureultimatesuccess. Preawardassessments
conductedbyprimescanbemanipulatedormisleading,notingexamplesof
temporaryofficesandstafftogivetheimpressionthatanNGOismorecapable.
SelfassessmentsbasedongoodexamplesfromtheTanzaniancontextaremore
effectiveiffacilitatedandverifiedbytheprime. TheprocessofdevelopingcapacityiscriticaltosustainingthecapacityofthelocalNGO.
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Recommendations
Shortterm
o HarnessfacilitatedselfassessmentsbylocalNGOstosupporttheirsenseofownershipoftheissuesandeffortstostrengthentheir
capacity. (See:RecentPracticesinMonitoringandEvaluationTIPS
MeasuringInstitutionalCapacity,2000No.15) Obtaininputfrom
Districtsandcommunitybeneficiaries. Verifyassessmentfindings
selectively,especiallyincompetitivecontexts.
Mediumterm
o EstablishbenchmarksleadingtoagraduationstandardforlocalNGOs. Stagesmayincludebasicskillbuildingandorganizational
development,followedbymoreworkwiththeDistricts,expansionof
activities,culminatinginaregistrationstandardorabroaderUSAIDresponsibilitydetermination. Atgraduation,thelocalNGO
shouldhave:
Governancestructures(board,organizationalgoals,leadershipstructure,legalstatusandconstituency)
EffectiveManagementPractices(planning&programdevelopment,reporting,administrativeprocedures,information
management,organizationalstructure)
EstablishedHumanResources(qualifiedstaff,clearroles,adherence
to
labor
laws,
salary
&
benefit
structure
and
policies,
supervisorypractices)
AdequateFinancialResourcesandSystemsforManaging(steadyfunding,accounting,budgeting,financial/inventory
controls,reporting)
PerformanceAbility(appropriateexpertise,recordofsuccess,abilitytoassessimpactandreportaccurately)
EffectiveExternalRelations(sustainingrelationshipswithbeneficiaries,constituencies,governmententities,otherNGOs
anddonors)
Programssustainedbyotherdonorsorsourcesofrevenueandbroaderengagementwithotherentitiestosustainsupport.
o ConductsectorwideassessmentsoftheNGO/FBO/CBOswithfollowupmidtermassessmentstodemonstrateimpact.
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Longterm
o ThefeasibilityofagraduationpathmustbesupportedbyUSAIDswillingnesstocommittolongertermplanningandfunding.
o Programdesignandproposalsshouldbeinformedbycircumstancesanticipatedbeyondtheestimatedcompletiondateoftheawardto
supportsustainableactivities.
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II.Negotiation/Award
1.InvestinOperationalSupporttoEffectivelyManageRisk
Federalregulatorystandardshavenotoleranceforfinancialorcompliance
failures. Undocumentedcosts,absenceofpriorapprovalsandotherviolations
leadtodisallowancesandfineswhichareseriousdeterrentsforNGOswith
limitedfinancialreserves. TheprimeNGOsmanagethisbyconducting
thoroughriskassessmentsandmanagingtheorganizationsandissuesthatare
mostcritical. USAIDandotherdonors,however,routinelyconstrainandcastan
especiallycriticaleyeoncostsforheadquarters,finance,complianceandother
supportfunctions,evenasprogramshavegrown. Finance,compliance,and
contractingstaffandtheirfunctionsareessentialtomanagingriskandassuring
thelongtermviabilityandgrowthoftheirorganization.
Despitetheimportanceofthefinanceandcompliancefunctions,thereispressure
tominimizethesecostsateverypointintheawardprocess. Program
descriptionsaredevelopedwithanemphasisonmeasurableresultswhichare
oftentiedtodollaramounts;thereforetherelative returnoninvestment is
emphasizedattheexpenseoffinancialandregulatorycompliance.WhenNGOs
developtheirapproachtoasolicitation,theyoftensqueezethesupportcoststo
demonstrategreaterefficiency. Duringthecourseofnegotiations,USAIDand
donorsingeneralpushonsupportcostsbecausetheresnoagreeduponruleof
thumbto
assess
their
reasonableness.
Rather
than
jeopardize
the
award,
NGOs
oftenacquiesce,resultinginstaffingandsalarylevelsthatareinadequateto
appropriatelymanagetherisks.
ThisdynamicextendstothelocalNGOsaswellinwhichtheyrarelyresistthe
negotiatingpositionsoftheprimes. Theydontwanttorisklosingthe
subaward. ItisdifficultforNGOsandDistrictstoattractandretainqualified
staffgiventheseconstraints. Forexample,thereisashortageofqualified
bookkeepersinTanzania,withmostseekingbetterremuneration,ofteninthe
largercities. AlocalNGOmightbudgetforfinancialstaffrangingfromTsh.200
600,000/month. Incontrast,aUSAIDfinanceassistant/cashierearnsbetweenTsh.1,200,000 1,500,000/month.
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Recommendations
Shortterm
o Supportoperationalfunctions(finance,compliance,HR,etc.)adequately,ifnotgenerously,inbudgets. Permittheprimesto
proposecosteffectivesupportstructuresgiventhenatureofthe
programandanticipatedrisks.
o Supportdifferenttypesoftrainingandprofessionaldevelopmentforthesestafftohelpmitigateturnoverandtoenhancethecapacityofthe
organization.
2.BestValueAwardDeterminationsShouldIncludeCapacityBuilding
Considerations
Thecompetitiveprocessdoesnotadequatelysupportsustainability. Thedonorsplaceapremiumoncosteffectivenessthatdoesnotmatchwithriskmanagement
ortheneedtobuildlocalpartnercapacity. Pressuresonsupportcosts(e.g.
accountants)andlogisticsaredetrimentaltolongtermsuccessoflocalpartners.
ThereisnoreserveincludedinUSAIDawardsthatcansupportinvestmentin
capacitybuilding. Thecostsarededicatedtoimplementationoftheprogram,
notinvestmentinthefuture,unlikeaforprofitfirmearningfixedfee.
Recommendations
Shortterm
o IncludecapacitybuildingintheprogramdescriptionofRFAssothatcostscanbeallocatedtothisobjective.
o Considertheprospectsforaccomplishingcapacitybuildingandsustainabilityobjectivesintheoverallbestvaluedeterminationofthe
solicitation.
3.SetToneofCollaborationwithBroaderPartnerCommunity
Thecollaborativetoneamongthedonors,USAIDinparticular,andtheGoTshouldechothroughtheimplementingpartnersdowntothelocallevels. There
appeartobegoodworkingrelationshipsbetweenUSAIDandtheprimeNGOs.
Partnerintervieweeseachnotedtheconstructiveengagementtheyhavewiththe
AgreementOfficer(AO)andtheAgreementOfficersTechnicalRepresentative
(AOTRs),creditingthemwithleadershipinthesectorandcommitmenttothe
work. Similarpositiverelationshipswereobservedbetweenthefieldofficesand
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thelocalNGOsandDistrictsthattheysupport. Theyfeltsufficientlycomfortable
tospeakcandidlyaboutthestrengthsandweaknessesoftheprogram.
Collaborativeworkingrelationshipsareessentialtoeffectiveandefficient
programmanagement.
Opencommunicationonaregularbasissupportstimelyresolutionofissuesand
mitigationofrisk. Ifacriticalissuelooms,afieldpersonismorelikelytoquickly
elevateitforguidanceifagoodworkingrelationshipalreadyexists. USAIDcan
reinforcethiscollaborationwithregularconferenceswiththebroaderpartner
community,andsupportforsimilararrangementsbetweentheprimesandtheir
subrecipients.
Recommendations
Shorttermo SupportthebestpracticeofconductingPreproposalconferencesto
assurethatallpartiesfullyunderstandtheactivitytopreparemore
realisticproposalsormakebetterinformedgo/nogodecisions.
o EncourageandfundPostAwardconferencesthatgobeyondthereviewoftheawarddocumentandincludeestablishmentofa
frameworkforworkingtogether. Allpartiesshouldparticipateand
establishstandardsofcommunications(e.g.nosurprises),howissues
willbeelevated,howoftenthepartieswillmeet,whowillmaintain
minutesand
action
items,
etc.
Mediumterm
o ConductregularPartnersDaymeetings,hostedbytheMissionDirector,SOTeamLeadersorAgreementOfficer,todiscusscommon
issuesoftheimplementingpartnersinTanzania. Representativesof
thecontractorsandgranteesworkinginTanzaniawillappreciatethe
opportunitytolearnfromtheseofficialsaboutrecentguidancefrom
USAIDandtoprovideinputonpressingissues.Modeledafterthe
M/OAAsponsoredPartnersDay,thegroupcanalsoestablishadhoc
workinggroupstoaddresscommonimplementationissues. ThecriticalelementisthatthePartnersDayprovidesanopportunityfor
thecontractorsandgranteestoraiseanddiscussissuesofmutual
concern,rangingfromoperationalproblemstostrategic
considerations.
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III.Implementation
1.StreamlineandDelegateAdministrativeApprovals
PriorApprovalsareworkingwellforsubawardsbasedongoodworking
relationshipsandastrongconsensusontheprogram. TheAOTRsrecognizethe
needfortimelinessandknowtheprocessforreviewandapproval. However,
theprimeshavealsoadjustedtheirprogramstoavoidtheneedtoobtainmore
onerousadministrativeapprovals,suchasrenovationcosts,
international/regionaltravel,livestockforincomegenerating,seedsforbackyard
gardensandmotorcyclesforworkers. Someapprovalshavetakenaslongas8
months.NGOsandtheDistrictsrepeatedlyexpressedpuzzlementaboutthe
needforadditionalapprovalsifthecostisalreadyincludedinthebudget. They
observedthatsuchmicromanagedapprovalsdidnotgivethemasenseof
ownership.
OnlybudgetincreasesandprogramrevisionsmustbeapprovedbyAgreement
Officers. Allotherapprovalscanbedelegated,streamlinedorblanketed. Under
22CFR226.25(e), theAOcandelegateapprovaltoAOTRsfor awardeechanges
inkeypersonnelortheirreducedworkontheproject,budgetlineitemrevisions,
subawardsandsubcontracts. Onetime,nocostextensionscanalsobe
authorizedforupto12months.
TheMission
Director
can
also
authorize
blanket
waivers
for
source/origin/nationalityrequirementsunder22CFR228,aswellasapprovalof
restrictedgoodswithincertainparameters.PEPFARalreadyprovidessuch
authoritywhichshouldserveasabasisforblanketwaivers. TheNGOpartners
preferblanketwaiverssothattheydontneedtoexpendtheadditionaltimeand
efforttoseekadditionalapprovalsinthefuture.
Approvalscanalsobestreamlinedtoavoidbottlenecksthatdelay
implementation. OftenUSAIDandtheimplementingpartnerarenotclearon
thecriteriaortheprocessforapproval,resultinginprotractedexchanges
requestingadditionalinformationandclarifications.
USAIDawardsarenotoriouslyadministrativelyburdensome. Otherfederal
agencieshaveeliminatedorstreamlinedapprovalstominimizenonvalueadded
requirementsonprofessionalstaff. Theapprovalofinternationaltravel,for
example,wasarequirementestablisheddecadesagofordomesticorganizations
havinglittlereasontotravelabroad. Thestandardusedbyotherfederal
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throughtheZonalofficeswiththeguidanceoftheMinistryofHealthandSocial
Welfare. Thenewreportingproceduresminimizethetimeandreducedouble
reportingofdatatoAMREFandtheresponsibleDistrict.
Whilethereportingrequirementisaburden,itisalsoabarometerofthe
partnersabilitytoaccuratelyandtimelyprepareandsubmitreports. The
learningcurveforreportpreparationissteepanditimposesadisciplinethat
preparestheNGOforfutureawards. Programofficersnotedthatreport
preparationisabasicbusinessprocessthatmustbestrengthenedfortheNGOto
beresponsibletothedonors.
Recommendations
Shortterm
o USAIDshouldcontinuetosupportthePrimeseffortstostrengthenthereportingcapacityofthelocalpartners.
Longterm
o USAIDshouldsupporteffortstoharmonizedatacollectionandreportingwithGoTanddonors. GreaterrelianceonGoTreporting
standardswillstrengthentheircapacity.
3.AuditsorReviewsConductedRegularlyRatherThanattheEndofthe
Activity
PrimeNGOsadheretotheprinciplethatratherthanauditingtothepenny,you
managetothedollar. Unfortunately,theauditorsdontalwayssharethis
perspective. Theideaistomanageriskratherthanavoidit. Regularreviews
andriskreassessmentswillhelpidentifyandaddressproblemsbeforethey
groworbecomeentrenched. ThelocalNGOsalsorecommendedthatthe
financialreviewersdonotcomeinasinspectors,whichputstheNGOsina
defensivemode,butratherasassessors. AMREFssubgrantmanagers,for
example,visiteachsiteandchecktheboxfilestoassuretransactionsare
properlydocumentedandcomplete,whichisverypracticalandeasilyverifiedwhileimposingadisciplineontheNGO. EGPAFcompliancestaffregularly
meetwiththeirdistrictstoreviewdocumentationandaddressanyissuesor
concerns. Eachofthethreeprimesconductregularvisitstodevelopa
mentoringrelationship,asdescribedinmoredetailbelow.
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Recommendations
.
Shortterm
o AssurethatPrimeNGOsconductregularreviewsinaconstructivemannerwithtimelyfeedbackandfollowup.
Mediumterm
o USAIDshouldcontinuethepracticeofconductingannualmanagementreviewsoftheprime. ThereviewconductedofEGPAF
wasdescribedasabestpracticeinthatithelpedthemmakenecessary
adjustmentsoutsidethecontextofaformalaudit.
4.MentoringbyPrimesofSubrecipientsisEssential
Thedifferencebetweenmonitoringandmentoringinprogrammanagementisthequalityoftherelationship.Monitoringisamanagementtoolwhile
mentoringaddsvaluetoperformanceofobjectives. Thequalityofthe
relationshipbetweentheprimeandthesubrecipientsisanessentialingredient
forsuccessfulprograms. ThethreeinternationalNGOsvisitedhaveaclose
workingrelationshipwiththelocalpartnersthathelpsmanageissuesand
changeincircumstances. Decentralizationandthecreationofzonalteams
furtherfacilitatecoachingandmentoring.
Decentralizationis
abest
practice.
When
program
and
finance
staff
are
located
intheregionsorzonaloffices,theydescribegreateraccess,commitmentand
engagementwiththelocalpartnersaswellasbettertrainingandmore
productiverelationshipswiththeDistrictoffices. Thestaffarealsomorereadily
availabletotroubleshootatanytime. (Forexample,theAMREFFinanceOfficer
answeredcellphoneinquirieswellintothenightasNGOleadersfinallyhada
chancetositdownandreviewtheirbooks.) AMREFsubgranteesreportedthat
theyareverypleasedwiththedecentralizationprocesswhichtheybelieve
encouragesmoreeffectivecommunicationandcoordination. AMREFs
experiencealsosuggeststhatdecentralizingthesubgrantingprocessismore
effectivecomparedtotheirformercentraloperationsapproachwhichoftenprolongedthesubgrantingtasks.
Whiletherelationshipsaresupportive,theNGOsmustbetrainedtomore
effectivelynegotiatetheirawards. Toooftenlocalpartnersagreetoanyassertion
oftheprimesbecausetheydonotwanttojeopardizetheaward.Whilepartof
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thisdeferenceiscultural,anotheraspectissimplythenatureofthecompetitive
processinwhichitiseasiertonegotiateafterawardthanbeforehand.
Giventheimportanceoftherelationshipbetweentheprimeandthesub
recipients,itsqualityshouldbebenchmarkedandmonitored. Afeedback
mechanismshouldalsobeestablishedtoassureactionontheinformationto
makenecessaryadjustments.
Recommendations
Mediumterm
o Decentralizationisabestpractice. Supportcosteffectivemeansofestablishingafieldpresencefortheprograms.
o Supportworkshops,aspartofthecapacitybuildingprocess,thattrainNGOstaffoneffectivenegotiating,especiallyinthecompetitiveprocess.
o Benchmarkthequalityoftherelationshipbetweenprimesandsubrecipientstoassureproperattention.
5.SupportCoordination/CollaborationamongPrimesandLocalNGOs
TheDistrictcurrentlyservesasafocalpointforcoordinationoflocalNGOs. The
developmentoftheCCHPhelpssupporttheengagementofthelocalpartners,as
sustainedby
coordinated
activities
over
the
course
of
the
year.
In
Kahama
District,forexample,theDistrictMedicalDirectormeetswiththeNGOsto
discusstheGoTprioritiesandtosolicittheirinputandcontributionstothe
activities. ThelocalNGOswillthencoordinatetheiroutreachandother
activitieswiththeDistrict.
Therearefewerexamplesofcollaborationamongtheimplementingpartners.
TheImplementingPartnersGroup(IPG)underPact/TanzaniasOVCprogramis
abestpracticewithregularandcomprehensiveparticipationatthenational
level. PactactsasSecretariatoftheNationallevelIPGwhichhasover90
organizationsasmembers,ischairedbyDSWanditsregularmonthlymeetingsarehostedbyUNICEF. AsexpectedbyUSAID,thismodelshouldbereplicated
ineachdistrict. Forexample,groupsareestablishingasimilarIPGintwo
DistrictsinTabora. AnotherexampleisEGPAFsuseofaDistrictmapofNGO
activities. EGPAFidentifiedMildmayasacollaboratingpartnertocontinuecare
ofpatientswhentheyreturntotheirvillages. Afewforumsandother
coordinatingattemptswerementioned,buthavenotbeensustaineddueto
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limitedresources. Forexample,thePLHIVNetworkmodelisausefuloneandis
hostedbytheRegionalMedicalOfficersinsomecases.
Recommendations
Longterm
o Districtsshouldremainthefocalpoint,butsupporttheestablishmentofregularRoundtablesorimplementingpartnersmeetingsatthe
DistrictlevelforlocalNGOstonetworkandcollaborateoncommon
issues.
o DistrictmappingofNGOactivitiescanfeedintotheCCHPandcoordinationofactivitieswithcomplimentaryprograms,suchas
nutrition.
6.Training
is
aContinuous
Need,
but
It
Requires
aTraining
Strategy
and
AlternativeModels
ThelimitedcapacityoflocalNGOsandDistricts,coupledwithhighturnover
ratesofprofessionalstaff,driveaneedforalmostconstanttraining. Allthelocal
partnershaddifficultyhiringandretainingqualifiedfinancialstaff. Invariably,
theprimeshadtotrainnewstaffondonorreportsandprogramrequirementsa
fewtimesayear. Frequenttrainingsareexpensiveanddonotaddressthe
underlyingchallengeofretention.
Thereisalsoasensethatinsomeactivities,thetrainingreceivedbytheLGAsis
oftenadhocandunplanned,withdecisionsastowhoattendswhattraining
oftenbasedonwhoisperceivedtobenextinlineforbenefitingfromexternally
fundedtrainings,includingthetravelallowancesandperdiems. Thetrainingof
LGAsingeneralwouldbenefitfrombetterplanningandaconsensusonhowit
willdirectlybenefitcapacitybuilding.
Recommendations
Mediumtermo Conducttraininginresponsetoabusinessorprogramissuewhichis
alsotiedintoabroaderorganizationalobjective. Forexample,
employeeretentionisamajorchallengeforsustainability;therefore
trainingshouldaddressboththetopicalneedsoftheparticipantsand
thebroaderneedtokeepthemonboard. Trainingofindividuals
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shouldbeconductedwithinabroaderorganizationaldevelopment
strategy.
o EncourageNGOstoexplorealternativestoclassroomtraining,suchastwinning,coaching,certifying,webbasedorcomputerbasedtraining,
etc.
7.CloseoutShouldBePlannedFromtheBeginningandIncludedin
SubawardsandMOUswithLGAs
Theadministrativeprocessofcloseoutisalwaysneglected,untiltheend,when
itstoolate staffmoveontootheractivities,documentsaremisplaced,timeis
limitedandattentioniselsewhere. USAIDhaslittletimetoreviewcloseout
paperwork,approvedispositionrequests,etc. Ultimatelytheresabottleneck
thatpreventsasmoothandefficientcloseoutoftheproject.
Astheawardconcludes,subrecipientsshouldattainthestandardthatwill
permitthemtoworkmoredirectlywiththeDistrictsanddonorstocontinue
theirwork. AllthelocalNGOsarenervousaboutwhathappenswhenthedonor
fundsexpire. Afewareactivelyseekingmeansofdevelopingtheircapacity,but
nonehastheexpertise,leadershiporresourcestoenhancethemselvesalone.
USAID,otherdonorsandtheGoTmustalsoconsiderthesegraduationstandards
inthecontextofastrategyforthesectorthatextendsbeyond2013. Otherwise,
thelocalpartnerswillbetakingagreaterleapthantheyarepreparedfor.
Recommendations
Shortterm
o USAIDshouldrequirecloseoutplansaspartoftheinitialproposalandthenverifytheplansatthebeginningofthefinalyear.
o USAIDshouldsupporttheincorporationofcloseoutplansandgraduationbenchmarksinsubawardsandMemorandumsof
Understanding(MOUs)withLGAstointegrateitsplanningand
resourcing.
Longterm
o USAIDshouldprepareitselfinternallytoexpeditecloseoutprocessing,especiallythedispositionofequipment.
o USAIDshouldrequireprimestomonitorprogresstowardsagraduationbenchmark(includinginternalchecklists,reassessments).
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Districtsshouldbeinvolvedfromthebeginninginverifyingprogress
oftheNGOs.
o USAID,otherdonorsandGoTshoulddefinearealisticscenarioforpost2013supportforthesectorinwhichthelocalNGOswillbe
sustainingthemselves. Carefullyconsidertheimpactandunintended
consequencesofconsolidationofthelocalNGOsectoriflargerawards
aremadetomoreefficientlymanagemorelimitedfunding.
Summary
Thethreeprogramsvisitedareworkingwell,despitechallengesinherentin
HIV/AIDSactivitiesanddonordrivensystems. Anunderlyingstrengththathas
facilitatedcoordinationamongdifferententitiesisPamojana,orworking
togetherwithoneanother. USAIDsinitiativetoexaminehowitcansupport
theworkofthePrimeRecipientsinworkingwiththeLGAsandNGOsreinforcesthischaracteristicoftheprograms. TheMissionswillingnesstomakethe
adjustmentssuggestedintheShorttermrecommendationswillbeasignaltothe
localentitiesofitscommitmenttochangeandalleviatingsomeoftheirmore
immediateconcerns. TheMediumandLongtermrecommendationswillbe
essentialforsustainingtheinvestmentsinthelocalentitiesbeyondPEPFARII.