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Humanitarian Finance - the basics

Session I: Humanitarian Financing (Appeals processes, pooled funding mechanisms, role of clusters, CERF exercise) Session II: Financial Tracking Service (FTS) and CAP Project Database (OPS). Humanitarian Finance - the basics. SUPPLY : (Funding sources) National government civil society

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Humanitarian Finance - the basics

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  1. Session I: Humanitarian Financing (Appeals processes, pooled funding mechanisms, role of clusters, CERF exercise)Session II: Financial Tracking Service (FTS) and CAP Project Database (OPS)

  2. Humanitarian Finance - the basics • SUPPLY:(Funding sources) • National government • civil society • NGO funds • bilateral donors • multilateral donors • private sector • pooled funds • CERF • Emergency Response Fund • Common Humanitarian Fund DEMAND:(Appeals for funding) - stand-alone appeals - consolidated appeals processes • Flash Appeals • Consolidated Appeals Process (CAPs) • Common Humanitarian Action/Response plans – Afg, Pak, Yemen, SL, Kenya, Nepal, Myanmar

  3. Demand side: Appeals

  4. What is a Flash Appeal? • overview of urgent life-saving needs • within a week of emergency's onset • acute needs 3- 6 months • Includes: • rapid needs assessments (3 days!) • all cluster response plans • projects for funding

  5. Indicative timeframe Indicative timeframe Day 1 • HC/RC triggers flash appeal – consults country team & government. Day 2-4 • Clusters conduct rapid needs assessment and prepare sector response plans and select projects. Day 5 • HC sends final draft to OCHA CAP Section, which circulates it for comment within 24 hr to IASC HQs. Day 7 • CAP Section processes & electronically publishes document • Official launch of appeal • Donors select from menu of projects.

  6. What is a CAP? A Consolidated Appeal is, basically, a longer version of a Flash Appeal (12 months), for longer-term crises, offering more analysis and detail.

  7. Supply side: Pooled funds

  8. Pooled funds 3 types: CERF - Central Emergency Response Fund CHF - Common humanitarian funds ERF – Emergency Response Funds Worldwide…. Country specific…. Small scale for gaps….

  9. Timeline for Planning and Appeals up to 6 months 6 months on • Cluster • Response Plan • plus projects Flash Appeal – Multiple donors Consolidated Appeals Process (CAP) CERF Project proposals

  10. Clusters have crucial role: involve all cluster participants coordinate rapid needs assessments set cluster strategy and priorities lead & coordinate response plans gather project proposals inclusively vet projects transparently ALL VERY FAST!

  11. What is CERF? • Rapid response grants (2/3 of grant facility) • Under-funded crises (1/3 of grant facility) if no other funding source immediately available, including agencies’ own unearmarked agency funds and earmarked donor grants 3. Loans ($50 million) funding committed but not yet paid; or commitment very likely • to meet immediate relief needs • max. per emergency is US$ 30m • min. CERF grant allocation per project is US$ 100,000 • funding to be committed within 3 months

  12. Who can receive CERF Grants? NGOs cannot apply directly for CERF funds, but: • should participate in process as part of the Cluster • do receive funds as implementing partners of UN agencies & IOM

  13. Essential CERF criteria Life-savingactivities or services Time-criticalactions or resources If not met, then

  14. CERF Funding Criteria • All projects funded through the CERF grant component must be for life-saving / core emergency humanitarian programmes defined as: Activities that, within a short time span, remedy, mitigate or avert direct loss of life, physical harm or threats to a population or major portion thereof. • Also permissible are common humanitarian services that are necessary to enable life-saving activities (e.g. air support, emergency telecommunications, logistics).

  15. Activities Outside CERF Mandate • Activities that are not immediately life-saving, such as disaster mitigation, early warning, prevention and preparedness, economic recovery, poverty reduction, and disarmament, are not suitable for the CERF. • CERF contributions do not cover: • Recurrent costs (regular government staff salaries, running office and maintenance costs, etc.) • Regular agency stockpiling • Capacity building and training (funded only if related to direct implementation of emergency response) • ** Proposals that contain life-saving elements in the project narrative but the budgets focus on non-life-saving elements are not suitable for the CERF grant window. **

  16. Examples of Life-Saving Activities

  17. Examples of Life-Saving Activities

  18. Examples of Life-Saving Activities

  19. Examples of Life-Saving Activities

  20. Priority Activities

  21. Main reason for delays in CERF funding… BUDGET ERRORS

  22. What is wrong with this budget?

  23. What is wrong with this budget? http://cerf.un.org

  24. Time for an exercise!

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