Grant Scheme Rules for support to International Organisations and Networks Chapter post

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1 Approved for dispatch to the Ministry of Foreign Affairs: Villa Kulild, 13 November 2013 Approved by the Ministry of Foreign Affairs: 20 March 2014 Grant Scheme Rules for support to International Organisations and Networks Chapter post including support under chapter post , the allocation to Women and Gender Equality The Rules have been drafted pursuant to section 6 of the Regulations on Financial Management in Central Government and chapter 6 of the Provisions on Financial Management in Central Government. The rules apply to Norad s management of chapter post , and of chapter post when used in connection with chapter post The Regulations and Provisions on Financial Management in Central Government have precedence over these Rules. 1 Objective of the scheme The overarching objective of the scheme is to ensure regional and international organisations and networks ability to influence national, regional and international decision-makers. In order to achieve this, emphasis will be put on increased competence and knowledge within the organisations and networks, as well as increased cooperation across national boundaries. For , the allocation for Women and Gender Equality, priority areas are the economic and political rights of women, influence and participation in society, the absence of violence towards women and children, and women s rights to safe sexual and reproductive health. The support is granted within the framework of current policy guidelines, particularly the annual budget proposition (Proposition No. 1 to the Storting). Support is subject to the annual state budget allocations. 2 Target group for the grant scheme The target group for the scheme is international organisations and networks excluding UN-organisations and which are primarily affiliated with civil society. A specific target group should be identified for all projects and programmes covered by this scheme. 3 Criteria for achievement of objectives The responsible unit shall obtain reports from projects under the scheme, enabling the evaluation of results and reporting on the scheme s achievement of objectives in the annual budget proposition. The societal effect may also to a large extent be influenced by other factors, and when reporting on the scheme s achievement of objectives the likelihood that Norad s funding may have contributed to any progress within the area shall be assessed. The relevance of the projects in relation to the scheme s overarching objective must always be documented, and the grant recipient shall, as far as possible, assess the likelihood that the grant may have contributed to progress or had an effect on society in areas that come under the scope of the scheme s overarching objective. 4 Allocation criteria Where projects can be implemented: Projects that receive support under this scheme shall be implemented in countries that at any given time are included in the OECD/DAC list of ODA recipients. Target groups in the Balkans which come under the scope of grant schemes managed by the Ministry of Foreign Affairs are not included in the scheme. 1

2 Who can apply for support: International and regional non-governmental organisations and networks. To be eligible for support, organisations must have members (organisations, countries or board members) from more than two countries. Inter-governmental organisations outside the UN may also receive support. Priority will be given to international and regional organisations which originate in developing countries. A grant recipient is required to: be an independent legal entity with its own articles of association and a responsible Board of Directors. The Board must normally be administratively separate from the day-to-day operations of the organisation. have an adequate economic base for the work to be carried out, and the necessary technical and administrative competence to implement the projects. have an established cooperation with local partners for its field-based operations. Which thematic areas can be supported: The annual budget proposition (Proposition No. 1 to the Storting) and the policy guidelines provided in the annual letter of allocation from the Ministry of Foreign Affairs to Norad, define the framework for which thematic areas can be supported. This will be reflected in the Call for Proposals. Other allocation criteria: The support shall supplement other Norwegian development assistance channels. Organisations and networks that are selected for support should provide an added value within their selected areas of intervention in the form of relevant competence, resources and development impact. The applicant must be able to document relevant competence in the area of intervention, effective systems for implementation and evidence of results. Focus on results and cost efficiency. Accordance with other politically prioritised areas in Proposition No. 1 to the Storting. If the organisations work at country or regional levels, their activities must be based on the principles of national ownership and of working within the framework of the developing country s planning documents. Exceptions may be made for organisations active in advocacy directed towards national governments, for instance in the field of good governance and human rights, including freedom of the media. Participation of the target groups in the decision-making processes which concern them. Support shall only be granted to projects that have impact in at least two countries. Support for conferences/seminars, including travel allowance, can only be granted if included as part of a larger programme or scheme funded by Norad. Assessment criteria when considering applications: Grant decisions shall be made on the basis of an overall assessment of the application. Criteria fall into two main categories: those that apply to the assessment of the organisation and those that apply to the assessment of the development assistance activity. Key factors in assessing the organisations are: 2

3 The capacity and competence to achieve the project s/organisation s objectives The cost-effectiveness of the organisation, i.e. its capacity to achieve the organisation s objectives at the lowest cost possible The systems for follow-up of results The ability to identify and manage risks financial control, including anti-corruption measures the organisation s added value in its development aid capacity for long-term planning sustainability and exit strategies inclusion of cross-cutting issues: gender equality, climate, the environment and anti-corruption measures Proportion used for indirect administrative costs The grant recipient may normally receive a percentage, in addition to direct project/programme costs, which may contribute to covering the grant recipient s administrative costs and support functions. For agreements under these Grant Scheme Rules, up to 7 per cent may be granted towards administrative costs. See also routine R10: Funding for administrative costs in connection with grants, which is available on The routine is currently under revision. Apart from administrative costs, parts of the support may be used for technical follow-up of the programme. By technical follow-up we mean, for instance, preparation of annual plans, objectives, indicators, training, etc. A cost defined as technical follow-up must provide a direct added value to the programme and be deemed necessary for implementing and for achieving results in the programme. In the case of recipients of core support, no rate for administrative costs is specified, but Norad will assess the grant recipient s total administration budget. The application should include: In the case of core support, Norad requires information concerning the organisation s or network s strategy. In the case of programme support, Norad requires information concerning objectives and expected results (outcome and outputs) of the programme/project. For both types of support, the following information is requested: Plans, budget and financing plan for the application period for the whole programme, including amounts applied for from Norad. Baseline analysis, indicators for the achievement of objectives, risk assessment and risk management, assessment of sustainability and cross cutting issues, in particular anti-corruption, gender equality, environment and climate. Application period and project period. A brief presentation of the results of the organisation s work during the last three years (max. two pages). A description of the organisation s structure (departments, board members, decision-making procedures, number of employees, etc.). A description of the organisation s basis in the South. A brief presentation of the organisation s networks and cooperation with other organisations. A list of other donors. 3

4 New applicants (organisations with no current contract with Norad) must enclose statutes (the rules of the organisation), strategic plan, ethical guidelines and audited accounts for the previous fiscal year. Norad will either provide core support or programme support. Only international organisations (i) included in the OECD-DAC list of international organisations 1, or (ii) whose activities are fully targeted at ODA countries, will be provided with core funding. Norwegian funding should be specifically earmarked for ODA countries whenever the organisations or networks in question also run activities in non-oda countries 2. Anti-corruption, gender equality perspectives, environment and climate must be taken into consideration in all projects. The grant recipient shall identify any negative impact the project might have and how this will be counteracted throughout the project cycle. Furthermore, positive anti-corruption, climate, environment and gender equality components shall be sought integrated into the project or added as additional components whenever relevant. The grant recipient shall have established ethical guidelines which, as a minimum, include the requirements outlined in Norad s Guide for ethical guidelines. The grant recipient shall carry out sufficient safety assessments for own employees under stays abroad, and in connection with this implement necessary measures related to, for instance, training, own guidelines, insurance and equipment. Identification of risks and risk management The implementation of the objectives of this scheme is associated with considerable risk. Applicants must be able to identify and analyse risks, and consider which counter-measures may be implemented and which type of risks may be accepted. 5 Information for potential grant recipients General information on the scheme shall be available on The scheme will be announced directly to relevant professional communities with potential beneficiaries who fulfil the necessary requirements for contributing to achieving the scheme s objectives in a cost efficient way. 6 Follow-up and control Follow-up and control shall be carried out in accordance with the Grant Management Manuals of the Ministry of Foreign Affairs and Norad, with the specifications given in these Grant Scheme Rules. The use of templates and forms follows the Manual unless otherwise stated. Legal quality assurance Legal quality assurance carried out by the Legal Section (JUR) is mandatory for: 1. All agreements with governmental actors (Norwegian and foreign) and international actors (UN, World Bank, etc.). 2. All NGO-agreements where the grant exceeds NOK 15 million. 3. NGO-agreements which are concluded with a lower grant amount whenever the contents of the agreement significantly deviate from the contents of the templates approved by Norad/The Ministry of Foreign Affairs, or these templates are unsuitable. 1 DAC Statistical Reporting Directives: 2 DAC Statistical Reporting Directives 4

5 4. All treaties. JUR must always be contacted if, exceptionally, there is an interest in entering into a treaty (agreement which is concluded on behalf of the Norwegian government with the government of another country or with an intergovernmental organisation). Norad (the department) must furthermore obtain an authorisation to sign the agreement from the Ministry of Foreign Affairs prior to concluding the agreement. A signed original treaty must be sent to JUR, which in turn takes charge of translation and forwards the treaty to the treaties archives of the Ministry of Foreign Affairs. The department negotiates the agreement and ensures that the agreement is signed/concluded on the basis of JUR s advice. If the legal advice is significantly deviated from, the decision to do so shall be documented. See also V06 in the Grant Management Manual for further guidelines. The grant recipient is responsible for management of the grants in accordance with the Agreement, from the date the agreement is concluded until all conditions have been fulfilled. Follow-up of grants Grants under this scheme will primarily be managed according to the Ministry of Foreign Affairs / Norad s management regime I «Project and programme support». The need for follow-up/monitoring of each project will be assessed in the Decision Document and included in the Agreement. The choice of grant management regime and management level is determined by an assessment of significance and risk of each project. The department in charge will regularly carry out organisational reviews of agreement partners under the scheme, with a focus on cost efficiency and results achievement. Reports shall be submitted annually, including a narrative report, audited accounts relating to the Contract and any work plans. The final report shall be submitted six months after completion of the programme, strategy or support period. The annual reports are mainly to assess the most important products and services (output), deviations and risk management. The final report shall provide an account of the results achieved for the users (outcome), sustainability and lessons learned. The long-term impact of the projects shall be included whenever possible. The organisations shall submit reports and audited accounts in accordance with the date specified in the contract. Audits shall be performed by a state authorised accountant, in accordance with standards given in the agreement. The report and accounts shall be considered by a Norad casehandler, and written comments and approval shall normally be provided in a separate letter to the organisation within six weeks. The grant is normally disbursed in advance in two instalments per year. Advance disbursements may maximally apply to a period of six months. The first disbursement normally takes place following the signature of the Contract by both parties. Subsequent instalments are disbursed upon the written request of the grant recipient, based upon a documented financial need and, if appropriate, offset against unused funds from the previous period. Audited accounts from the previous year, and the final report, if appropriate, shall be approved prior to disbursement of the final instalment. Upon completion of the Contract, unused funds shall be reimbursed to Norad within six months after the end of the support period. If grant funds from Norad are included in a project co-financed by two or more donors, any unused funds shall be subject to reimbursement to the donors in proportion to the contribution made by each individual donor. Reimbursement of accrued interest is not required for international non-governmental actors, and may be used for purposes agreed upon between Norad and the individual grant recipient. Interest earned in the country where the development assistance is carried out shall go to the programme, and shall be shown as income in the accounts report. Upon completion of the agreement, permission may be given to use the funds up to six months into the next year, providing this has been applied for. The grant recipient can apply to use disbursed grants that remain unspent at the end of a financial year in the following year, as long as it is within the support period. The deadline for this application is no later than the second request for disbursement, the year after the funds were disbursed. 5

6 Consideration of appeals Allocation decisions and rejections of applications for grants are individual decisions pursuant to the Public Administration Act, and may be appealed to the Ministry of Foreign Affairs. The appeal will be processed in accordance with the Public Administration Act, Chapter VI. The complaint shall be submitted in writing to Norad within three weeks from the date that notification of the decision is received by the applicant. If Norad upholds the rejection, the matter is referred to the Ministry of Foreign Affairs for decision. The decision of the Ministry of Foreign Affairs is final, and the Ministry shall send its reply directly to the applicant. Possible forms of sanction against grant recipients If the grant recipient breaches the obligations set out in the agreement, for instance, provides incorrect information, uses the grant for purposes other than prescribed in the agreement, lacks agreed control systems, violates ethical guidelines, etc., Norad will consider applying appropriate sanctions. In cases where a breach of contract has been established, Norad may reject new programme/project applications, withhold or reduce future disbursements, demand (full or partial) reimbursement or terminate the agreement. When considering which form of sanction to apply, attention is paid to, inter alia, the seriousness of the breach of contract proportionate to the negative consequences of the sanctions for the grant recipient. Zero tolerance towards corruption and financial irregularities Norad practices zero tolerance towards corruption and financial irregularities. This means that the grant recipient is obliged to organise its operation and activities in such a way that corruption, misuse of funds and financial irregularities are effectively countered throughout the organisational chain down to the end user. On suspicion of financial irregularities, the Fraud unit in Norad shall be notified, in accordance with Norad s Guidelines for Dealing with Suspicion of Financial Irregularities" (valid from 26 January 2011). Norad has established a whistleblowing channel where it is possible to report anonymously according to the described procedures on norad.no: Suspicion of corruption or any form of misuse of funds in a project financed under these Grant Scheme Rules will normally lead to immediate stop of planned disbursements until the case is resolved. If financial irregularities have been documented Norad will demand a reimbursement. 7 Evaluation Norad s Evaluation Department is in charge of planning and carrying out independent evaluations of activities funded through the Norwegian aid budget. Evaluations may be conducted for the whole scheme or parts of it, or for topics/objectives/countries that cover two or more grant schemes. 6

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