Title: Slides
1 Monitoring and Evaluation in Humanitarian Aid
Quality Procedures PROJECT STRAND 1 Training
and Capacity Building
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4Budget
- 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
5Budget
- 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
6Budget
Budget 3 types of formats
Budget for Financial Request and Interim
Financial Report
Budget summary (by the EC)
Budget for Final Financial Report
7Budget
Initial request and Interim
Final request
8Budget
FORMAT FOR ECHO BUDGET PHASES
9Budget
DIVISION OF BUDGET IN TITLES
The division of the budget into titles is
structured using a separation of direct costs,
indirect costs and reserve
10The budget is structurated using codes of 2, 4 ,
6, 8 digits which must be followed in the
presentation of the budget and accounting
Budget
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 costs 03. Indirect costs 04. 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 DIGITS 01.01.01.01. 01.01.01.02 Corn Flour Vegetable 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)
11Budget
- 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
12Budget
- 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)
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14Applications 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
15Applications 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
16Applications 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.
17Applications 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.
18Applications ANNEX II
- B. Exchange of written correspondence approved by
ECHO - When?
- For a transfer between Title 01 and Title 02 gt
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. -
19Applications 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.
20Applications 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)
21Applications 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
22EXAMPLE Budget flexibility and amendment
Initial budget
Unilateral modifications in budget notifying ECHO
23EXAMPLE Budget flexibility and amendment
24Applications ANNEX II
- 2. TIMES REQUESTED FOR THE PRESENTATION OF
FINANCIAL REPORTS - Projects of Primary Emergency, Emergency and
other projects with duration lt 6 months - Projects with duration gt 6 months
25Applications ANNEX II
A. Projects of Primary Emergency, Emergency
other projects with duration lt 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
26Applications ANNEX II
B. Projects with duration gt 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
27Applications 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 Agreement and is considered a threat to the
continuation of the FPA
28ApplicaTIONS ANNEX II
- 3. FORM REQUESTED FOR THE PRESENTATION OF
FINANCIAL REPORTS - Projects of Primary Emergency and Emergency
- Other projects with duration lt or gt 6 months
29Applications ANNEX II
A. Projects of Primary Emergency and Emergency
6 Digits
8 Digits
30Applications ANNEX II
B. Other projects with duration lt or gt 6 months
6 Digits
8 Digits
31Phase 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 lt 6 months
Other projects gt 6 months
Phase II Interim Financial Report
Phase III Pre-Final
Narrative Report
32Phase I Financial Request
Fase III Final
Financial Report
Phase IV Final
Financial Report
TIMING
Primary Emergency, Emergency, other lt 6 months
Other projects gt 6 months
Phase II Interim Financial Report
Phase III Pre-Final
Narrative Report
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34Budget Instruments
To facilitate the work an instrument was created
to apply to the budget and accounting expenses
35Instruments the Trenino
OBJECTIVE To facilitate writing the budget and
the correct monitoring of accounting for expenses
36Instruments The Trenino
- What it isnt
- 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
37Instruments 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
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