Monitoring and Evaluation in Humanitarian Aid: Quality Procedures

1. Monitoring and Evaluation in Humanitarian Aid: Quality Procedures PROJECT – STRAND 1 – Training and Capacity Building

2. ANNEX II Budget in collaboration with

3. Budget formats

4. 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

5. 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

6. Does not have details Unit, Quantity and Unit price Contains only items for Titles and Chapters Contains details Unit, Quantity and Unit price Budget Budget: 3 types of formats Budget for Financial Request and Interim Financial Report Budget summary (by the EC) Budget for Final Financial Report

7. Budget Initial request and Interim Final request

8. FIRST PHASE: FINANCIAL REQUEST SECOND PHASE: INTERIM REPORT THIRD PHASE: FINAL REPORT Budget Breakdown Budget Summary and Financial Plan Interim Financial Report Pre-final Narrative Report (> 6 months, except Primary Emergency and Emergency) Final Financial Report Budget FORMAT FOR ECHO BUDGET PHASES

9. DIRECT COSTS INDIRECT COSTS RESERVE Title 0.1.“Goods and services delivered to the beneficiaries” Title 0.2. “Supporting costs” Title 0.3. “Indirect costs” Title 0.4. “Contingency reserve – pro memoria” 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:

10. 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

11. 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

12. 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)

13. Practical application of the budget

14. Applications ANNEX II SUMMARY Principles of budget flexibility and amendment procedures Times requested for the presentation of Financial Reports (Financial Request, Interim Financial Report, Pre-Final Narrative Report and Final Financial Report) Form requested for the presentation of Financial Reports Sensible points and the “Trenino”: practical applications

15. Applications ANNEX II 1. BUDGET FLEXIBILITY AND AMENDMENT “Unilateral modification of the Budget by the NGO, notifying ECHO” “Exchange of written correspondence approved by ECHO” “Supplementary Agreement”

16. Applications ANNEX II A. Unilateral modification of budget by NGO notifying ECHO When ? The budget modifications introduced do not affect a basic element of the Operation; 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.

17. 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.

18. Applications ANNEX II B. Exchange of written correspondence approved by ECHO When? 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. To request the use of the Reserve, in the case in which funding had been granted in the Grant Agreement Intend, for operational and/or contingency reasons, to carry out a change affecting a significant element of the operation (location, beneficiaries, sustainability); To request a change of the bank account used by the HO. Modification of indicators and source of verification.

19. Applications ANNEX II B. Exchange of written correspondence approved by ECHO What type of procedure to follow? 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]) 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.

20. Applications ANNEX II C. Supplementary Agreement When ? If the HO wants to request an EXTENSION of the project implementation period If the HO wants to request a BUDGET INCREASE justified by operative reasons For co-financed projects, when a MODIFICATION OF THE PERCENTAGE in the co-funding quota is requested For modification or inclusion in the agreement of an article 9 “specific conditions” (i.e. modification or derogation to General conditions);

21. Applications ANNEX II C. Supplementary Agreement What type of procedure to follow ? 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) 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) The amended Grant Agreement will become effective when signed by both parties (ECHO and NGO) and sent to ECHO

22. EXAMPLE “Budget flexibility and amendment” Initial budget Unilateral modifications in budget notifying ECHO

23. Unilateral modification of budget by NGO notifying ECHO Exchange of correspondence with approval by ECHO EXAMPLE “Budget flexibility and amendment”

24. Applications ANNEX II 2. TIMES REQUESTED FOR THE PRESENTATION OF FINANCIAL REPORTS Projects of Primary Emergency, Emergency and other projects with duration < 6 months Projects with duration > 6 months

25. MANDATORY DOCUMENTS WHEN Budget Breakdown Interim Financial Report (+inventory) Final Financial Report Presentation of project proposal Applications ANNEX II A. Projects of Primary Emergency, Emergency & other projects with duration < 6 months At least one month before the end of implementation period, unless otherwise specified in the Grant Agreement Within 6 weeks of end of implementation period, unless otherwise specified in the Grant Agreement

26. MANDATORY DOCUMENTS WHEN Budget Breakdown Interim Financial Report Pre-Final Narrative Report (+inventory) Final Financial Report Presentation of project proposal Applications ANNEX II B. Projects with duration > 6 months Usually halfway through project implementation period(date specified in the Grant Agreement) 1 month before the end of project implementation period Within 3 months of the end of project implementation period

27. Applications ANNEX II ATTENTION The Report shall be presented using the standard forms supplied by ECHO in the same language of the Grant Agreement All Reports must be expressed in Euro The EU may request further information which must be supplied within 30 days of the request Failure to respect expiration dates, without valid motivation, may cause cessation of the Grant Agreementand is considered a threat to the continuation of the FPA

28. ApplicaTIONS ANNEX II 3. FORM REQUESTED FOR THE PRESENTATION OF FINANCIAL REPORTS Projects of Primary Emergency and Emergency Other projects with duration < or > 6 months

29. MANDATORY DOCUMENTS BUDGET DEFINITION Budget Breakdown Interim Financial Report Final Financial Report 4 Digits Applications ANNEX II A. Projects of Primary Emergency and Emergency 6 Digits 8 Digits

30. MANDATORY DOCUMENTS BUDGET DEFINITION Budget Breakdown Interim Financial Report Final Financial Report 6 Digits Applications ANNEX II B. Other projects with duration < or > 6 months 6 Digits 8 Digits

31. At least 8 digits • Use only format Annex II • Do not fill in the Budget Summary • Insert Cost and Element type • Insert Accounting Reference N° • 4 digits • Use only format Annex II • Do not fill in the Budget Summary • Use only column INITIAL Budget • Use format Annex II Interim Financial Report (6 digits) in case of modifications introduced into the budget • 6 digits • Use only format Annex II • Do not fill in the Budget Summary • Highlight changes with the columns INITIAL/MODIFIED • Insert amount spent/committed in column ACTUAL BUDGET Phase I: Financial Request • 6 digits • Use only format Annex II • Do not fill in the Budget Summary • Use only column INITIAL Budget • Do not fill in “Special Mandates” Fase III: Final Financial Report Phase IV: Final Financial Report DIGIT Primary Emergency and Emergency Other projects < 6 months Other projects > 6 months Phase II: Interim Financial Report Phase III: Pre-Final Narrative Report

32. within 6 weeks of the end of the project implementation period,Unless otherwise specified by the Grant Agreement • Within 3 months of the end of project implementation period • Presentation of project proposal • 1 month before the end of project implementation period (only narrative + inventory) • at least 1 month before the end of the implementation period (with inventory), • Unless otherwise specified by the Grant Agreement • Normally halfway through the project implementation period • (date specified in the Grant Agreement) Phase I: Financial Request Fase III: Final Financial Report Phase IV: Final Financial Report TIMING Primary Emergency,Emergency, other < 6 months Other projects > 6 months Phase II: Interim Financial Report Phase III: Pre-Final Narrative Report

33. The “Trenino”

34. Trenino Budget: Instruments To facilitate the work an instrument was created to apply to the budget and accounting expenses

35. Instruments: the “Trenino” OBJECTIVE “To facilitate writing the budget and the correct monitoring of accounting for expenses”

36. Instruments: The “Trenino” What it isn’t It is not an instrument to substitute ECHO documents It is not an instrument for planning and controlling the activity It is not an instrument for controlling expenses met in relation to programmed expenses It is not an instrument for integrating accounting & managing systems adopted by the single HOs

37. Instruments: the “Trenino” Contents • A summary by topic of the funding information in the various FPA documents • 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

38. The end