Engaging diaspora communities to support youth employment in Senegal and Morocco

Transcription

1 International Fund for Agricultural Development Programme Management Department (PMD) Policy and Technical Advisory Division (PTA) 5 May 2016 Invitation to Bid Engaging diaspora communities to support youth employment in Senegal and Morocco Proposals shall be sent to: diaspora-jeunes@ifad.org Deadline for confirming of interest to submit: 11 May 2016 Deadline for submission of proposals: 19 June 2016, 23:59 CEST

2 Table of contents I. DESCRIPTION OF THE INVITATION TO BID 1 II. PROJECT BACKGROUND 1 III. PROJECT DESCRIPTION 2 A. RATIONALE 2 B. PROJECT GOAL, OBJECTIVES, EXPECTED OUTCOMES AND TARGET GROUPS 2 C. FUNDING AND DURATION 3 D. IMPLEMENTATION ARRANGEMENTS 3 E. PROJECT ACTIVITIES 4 F. MONITORING & EVALUATION 4 G. KNOWLEDGE MANAGEMENT AND LEARNING 4 IV. SELECTION PROCESS AND EVALUATION CRITERIA 5 H. EVALUATION CRITERIA 5 DESCRIPTION OF EVALUATION CRITERIA 6 V. APPLICATION PROCESS 7 I. DOCUMENTATION REQUIRED 7 J. PROCESSING AND APPROVAL OF PROJECT PROPOSAL 7 APPENDIX A. Application form (overview information) 9 APPENDIX B1. Large Grant Project Proposal 10 APPENDIX B2. Large Grant Design Document: templates and guidance 11 APPENDIX C. Supporting financial and legal documentation 16 APPENDIX D. Financial management questionnaire 17 APPENDIX E. General Conditions 21 i

3 I. Description of the Invitation to Bid 1. This Invitation to Bid is to select a recipient or consortium of recipients to receive IFAD grant financing to implement a project on Engaging diaspora communities to support youth employment in Senegal and Morocco'. Potential receipients or consortiums of recipients are being invited to develop a proposal based on the background and guidance detailed in these guidelines. 2. All applicants are invited to submit their proposals by providing all the information requested in Appendeces A to D by 19 June :59 CEST. II. Project background 3. The International Fund for Agricultural Development (IFAD) is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. IFAD s goal is to empower poor young rural women and men in developing countries to improve their incomes and food security. To do this, IFAD is working with diaspora organizations in mobilising investments for the creation and development of rural enterprises providing young rural people better access to employment opportunities and strengthening their resilience. 4. IFAD s Financing Facility for Remittances (FFR) is a US$36 million fund working to reduce poverty and promote development by leveraging remittances and supporting migrant investments in rural areas of developing countries. The FFR recognizes the contribution remittances and migrants investments make in creating local and national development opportunities. 5. Diaspora communities fulfil a key development role in their countries of origin, mainly as major direct investors in emerging industries, particularly in fragile countries, and as philanthropists. Migrants are not only better informed about opportunities in their regions of origin, but they are also more willing to invest, even in fragile states. Whether through remittances, savings or investments, migrant workers possess a powerful set of instruments to change their own lives and the lives of those back home. This is at the core of the contribution of migrant workers to rural development and poverty alleviation. 6. A preparatory workshop on Engaging diaspora communities to support youth employment in Senegal and Morocco was held at IFAD Headquarters on 8 April 2016, with the aim to debate the issue of diaspora investment in coutries of origins, identify needs and challenges, and share best practices on previous and current initiatives in this field. 7. This project is aligned with IFAD s Diaspora Investment in Agriculture (DIA) initiative, launched by IFAD and the United States Department of State in 2012, with the aim to leverage the contributions of migrant workers and encourage their engagement in sustainable economic development through investment in agriculture. 8. This project is also aligned with the new grant policy approved by IFAD's Executive Board in April 2015 and with the strategic directions set forth by IFAD s Executive Management Committee meeting held in July 2015 for the global/regional grants. In particular it: a. has a global public good dimension, with cross-regional/country knowledge exchange and sharing of benefits that can be aggregated and assessed beyond a single country operation;

4 b. aims at generating knowledge to be shared within IFAD, feeding into country programming activities, and policy engagement at regional and global level, that require a proper documentation and analysis of the achievements made; and c. responds to the priority area of rural youth and employment, with a focus on the creation of institutional/policy innovations that lead to sustainable livelihoods and decent employment for rural youth. III. Project Description A. Rationale 9. According to the most recent data, there are 425,000 Moroccan and 85,000 Senegalese migrant workers in Italy. Each community sends back home 250 million euros every year in remittances (source: Banca d'italia).in addition to remittances, IFAD estimates that total diaspora investments to Senegal reach 43 million euros per year of which 75 per cent are located outside the capital (IFAD 2015). In Morocco, total diaspora investments amount to 160 million euros, 19 per cent of which is directed to agriculture or agri-business activities (MCMREAM, AEM 2014). Migrants' investments generally range between 10,000 and 100,000 euros. If investments financed by migrants resources remain residual compared to remittance flows, their impact at the local level is significant in terms of value added generated and distributed in on and off-farm activities and durability. 10. Migrations particularly affect rural youth in search of opportunities with consequences on the short term on productivity of rural households, ageing and gender effects on village populations, and, on the longer term, consequences on food security and sovereignity at local and national levels. Empirical evidence shows that investments in rural areas and agriculture can mitigate the negative effects of migrations on rural localities when properly channelled to support long-term agriculture productivity and resilience, eventually leading youth to consider migration a choice rather than a necessity. 11. The relevance to set up reliable mechanism in order to channel diaspora resources in favour of youth employment in rural areas was confirmed by diaspora organizations, foundations, NGO and public stakeholders in the aforementioned preparatory workshop. The ability of diaspora community to catalyse sources of funding, technical and institutional support from other partners was also underlined. B. Project Goal, objectives, expected outcomes and target groups 12. The goal of the proposed project is to promote inclusive and sustainable growth by supporting employment opportunities for rural youth in Senegal and Morocco.This will be done by leveraging the commitment of the diaspora in Italy towards their communities of origin, and facilitating viable investments and knowledge transfer in the target countries. 13. Specific project objectives include: - promotion of rural youth employment (wage employment and self-employment) - stimulation of the use of migrant's investment in local rural development - facilitation of the transfer of knowledge, skills and innovations from migrants and migrants associations to the communities of origin

5 14. Expected outcomes: - increased number of young people employed in rural areas - increased amount of diaspora investment in rural livelihood activities - increased number of successful business models 15. Direct and indirect target groups: - The direct target group will consist of rural youth, in the age range 15-35, that will benefit from diaspora's investments in Senegal and Morocco - The indirect target group will consist of all the beneficiaries of the IFAD-supported investment projects in Senegal and Morocco linked to this grant C. Funding and duration 16. IFAD funding for this project proposal is provided through a grant which will be subject to review and clearance by IFAD management and subsequent approval by IFAD s Executive Board. 17. The approved grant will be awarded to a lead organisation (which could form part of a consortium) selected as grant recipient among the applicants to this Invitation to Bid in the amount of up to US$1,500, Co-financing (in-cash and/or in-kind 1 ) of the IFAD grant-financing amount provided by the applicant and any additional co-financing is part of the selection criteria.the applicant must ensure a minimum counterpart contribution of 20 per cent of the amount provided by IFAD. 19. The programme s duration can be from a minimum of three to a maximum of five years as of the date of signature of the grant agreement by IFAD, following approval by the Executive Board which is expected by December D. Implementation arrangements The applicant is requested to forward its own project proposals aimed to meet the goals and objectives mentioned in section B. 20. The applicant is requested to put in place a mechanism to provide financial and non financial support to investment business proposals aimed at supporting rural development activities, targeted to the generation of local youth employment and leveraging diaspora engagement. 21. During the project implementation period, both diaspora communities based in Italy as well as youth organizations and/or organizations supporting youth based in Senegal and Morocco will be entitled to submit business proposals covering the entire range of rural livelihood options, including on and off-farm activities. Priority will be given to business proposals generating rural youth employment, with tailored capacity building that promote skills transfers. 22. Financial support could possibly be provided through a matching grant facility, combining IFAD grant funds with diaspora funds and any other co-financing if available. 23. The applicant will propose its own methodology to identify, select and support business proposals and promoters upon its experience or the experiences of its partners. 1 The calculations of in-kind co-financing contributions should be appropriately detailed, justifiable and measurable

6 24. Once approved, business proposals will be eligible to receive financial and technical support as required. 25. The applicant will have to bring together the functions indicatively shown in figure 1. Informing and sourcing Screening and defining the menu of options Monitoring and technical support Inform diaspora and youth organisations in targeted areas Gather their investment business proposals Support applicants to assess their preparedness to the application process Orient others towards other options Assess adequacy of investment proposals, including financial and technical resources and network mobilisation Define the needs of business development services (BDS) and their service providers Feasibility study Capacity assessment and building Business plan Identification of mentor Networking Financing mobilisation Post creation support Figure 1: List of functions required during project implementation 26. Evaluation criteria are listed in section IV. E. Project activities 27. The project activities might be structured around three main components: (i) Institutional support and capacity building. This will include both the support to diaspora/ young entrepreneurs from Senegal and Morocco to translate their ideas in robust business proposals and support to local communities to implement investment proposals. (ii) Approval and implementation of business proposals submitted by the diaspora and/or local communities. (iii) Project management, including M&E and Knowledge Management (KM) activities. F. Monitoring & Evaluation 28. Inputs and outputs of the program will be monitored regularly by the selected grant recipient, in collaboration with IFAD, in order to ensure the timely implementation of the proposal. An annual progress report will be prepared by the grant recipient. The program will be evaluated jointly by the grantee and the concerned projects. 29. IFAD will earmark funds for supervision as per its grant policy. G. Knowledge Management and Learning 30. Project activities and impact will be timely documented, shared with all IFAD projects and used for learning purposes with the ultimate goal to scale-up and mainstream these activities in IFAD's

7 on-going country programs in Senegal and Morocco and other potential countries. IFAD will also scout relevant conferences and organize special events in-house to present project achievements. IV. Selection process and evaluation criteria 31. Proposals submitted under this Invitation will be reviewed by a Selection Committee on the basis of the evaluation criteria listed below 32. Each institution can decide to submit a project proposal alone or jointly with other partner(s); in that case, the lead institution who will enter into a legal agreement with IFAD - should be clearly identified and roles and responsibilities of the other partners be explicitly stated. 33. The recipient can be a public or a private sector entity. Governments and government agencies of developed Member States and non-member States 2 are not eligible. Non-profit, nongovernmental organizations in non-member States are eligible only if a specific waiver is granted by the President of IFAD. Further details on legal and financial eligibility are provided in Appendices C through E. H. Evaluation criteria 34. Project proposals will be evaluated by a Competitive Screening Evaluation Team (IFAD committee) according to the criteria listed in Table The applicant will have to demonstrate presence and the abitility to efficiently deliver the array of services and activities required in Italy, Senegal and Morocco, and specifically: (i) capacity to reach out and involve migrants associations and the diaspora in Italy; (ii) capacity to provide, either directly or through partners, technical and institutional support in the selected home countries; and (iii) technical competence in rural development. Table 1. Selection Criteria Criteria Weight (%) Technical content and consistency with guidelines 40 Implementation capacity 30 Country experience and south-south partnership 15 Co-financing ratio 10 Value for money 5 Total A full list of Member States by typology is available here.

8 Description of evaluation criteria 36. Technical content will be evaluated on the basis of the information provided in the proposal that should include all sections included in the template provided in Appendix B1 and in particular section III (The proposed project), section IV (Implementation arrangements), sub-section C in section V (Scaling up and sustainability) and the Result-Based Logical Framework (available in Appendix B 2.5 of this Invitation to Bid). 37. The evaluation of the technical content will be based on: Implementation strategy: Whether the project/initiative clearly describes the specific activities that will be developed to implement it, and the type and number of expected beneficiaries (direct and indirect). Proposal assessment will consider: feasibility and overall consistency of project activities, project workplan, financing plan, envisaged processes and procedures; appropriateness of the implementation arrangements and resources to be mobilized for the project; overall quality of the proposal documents (form and content). The applicant should specifically describe (i) how it intends to reach out to both Senegalese and Moroccan diaspora in Italy; and (ii) how it intends to reach out to eligible young individual/organizations/small enterprises in the two target countries. Impact: Whether expected results are concretely explained. Specific targets should be mentioned, including: direct and indirect beneficiaries, and development of productive rural investment opportunities for migrants and community-based organizations. Sustainability, scalability and replicability: Whether the project can be sustained with or without IFAD support; and/or can be applied to other contexts to achieve greater impact; and/or attract/leverage additional resources to be scaled up by other development partners, including government programmes. 38. Implementation capacity of the applicant (and of any associated implementation partner) to carry out the proposed activities and to account for funds should be demonstrated. Both applicant and partner organizations should demonstrate their capacity to carry out the proposed activities, including technical, managerial, administrative and financial capacity; their ability and willingness to target rural youth in country of origin. Prior experience in the area of diaspora investment and youth issues will be preferable. 39. Country experience and south-south partnership. Prospective recipients should demonstrate their experience(s) in each of the concerned countries and their commitment to south-south cooperation and knowledge sharing. In particular they should demonstrate: (i) capacity to reach out to all Senegales and Moroccan migrants associations and the diaspora of the two countries in Italy; and (ii) capacity to provide, either directly or through partners, technical and institutional support in the selected home countries. 40. Co-financing ratio. Prospective recipients are required to provide co-financing to the project, either directly or through additional partners. The co-financing ratio is important to demonstrate commitment and ownership thus the applicant should demonstrate ability to raise or catalyse financing. 41. Value for money. This requires a judgment on whether the expected development benefits justify the costs. This implies that adequate metrics for measuring both are embedded in the project proposals.

9 V. Application process 42. Only project proposals received within the stipulated period will be accepted. 43. Applicants must be aware that the selected project proposal will be subjected to internal management review that may require adjustments to the design document before its submission for final approval by the Executive Board. I. Documentation required 44. Each applicant must submit the following documentation: Application form see Appendix A; to fill-in with basic information and submit with the full project proposal and a declaration that the applicant would be able, if selected, to provide supporting financial and legal information. Full project proposal: see Appendix B1 and supporting guidance Appendix B2. The proposals should follow the guidelines provided in this Invitation to bid and include Appendix B1 and Appendix B2.5 (Logical Framework). Templates to present a financing plan can be found in Appendices B2.3 and B2.4 and should be included in the full proposal under section VI (project costs and financing) of the template provided in Appendix B1. Financial and legal information(see Appendix C for detailed requirements): o A declaration indicating that, in case of selection, the applicant would be able to provide audit reports signed and dated by an external auditor (in PDF format)for the last two years,including the audited financial statements. This documentation should not be included at this stage but the selected institution (or the institution leading the consortium) will be required to provide it during the grant design period and prior to the finalization of the Grant Agreement. o Financial Management Questionnaire (FMQ) (seeappendixc1) o A procurement plan 3 and procurement guidelines of the applicant (or declaration that it will apply IFAD s guidelines); see: 3d4611a9a20b o Type of contractual arrangements with implementing partners and details of flow of funds and financial reporting to/from these partners 45. Proposals can be submitted either in French or in English. The detailed proposal should not exceed 20 pages (excluding appendices C1 and C2), presented in single-spaced, Arial point 10-font text. Only MS-Word and PDF formats will be accepted. File size cannot exceed 5 MB. J. Processing and approval of project proposal 46. The Invitation to Bid will be launched on 5 May 2016 on an IFAD a dedicated website: Interested institutions are requested to confirm their intention to submit a proposal by no later than 11 May 2016, 23:59 CEST tothis address: diaspora-jeunes@ifad.org. 47. Proposals, together with all supporting documentation, must be submitted by 19 June 2016, 23:59 CEST. Those received after the deadline will not be considered, while the ones received by the 3 Only if procurement of goods and services exceeds US$200,000. This is not mandatory at this stage.

10 indicated deadline and deemed to be compliant with the above mentioned requirements will be evaluated in accordance with the process outlined herein. 48. Applicants are given two weeks (11-25 May 2016 inclusive) to send their questions and request for clarifications to the address: Answers will be published on the above mentioned IFAD ad-hoc website by 30 May Proposals will be evaluated by an IFAD Committee composed of senior staff and technical experts. Each proposal will be evaluated according to the criteria indicated in Table 1. For each criterion, a score from 1 (very poor) to 6 (excellent) will be assigned. The application receiving the highest total score will be selected. 50. The selected recipient will be notified on the outcome of the call by 4 July Once the successful applicant has confirmed acceptance of the grant award (maximum 5 days after receiving notification), all other applicants will be notified. The winning applicant should be available to further develop and adjust the full grant design document under the direction of IFAD s Policy and Technical Advisory (PTA) Division, to address comments raised during the internal management review process and to provide the legal and financial documentation required as per Appendix C. 51. IFAD reserves the right not to appoint any successful applicants if the quality of the received applications is not deemed of acceptable quality or does not meet IFAD requirements. 52. The tentative timeline of the whole process is included in Table 2. Table 2. Tentative timeline Activities Qualification Deadline Invitation to submit proposal 11 May 2016 Period for collection of questions 25 May 2016 Reply to collected questions 30 May 2016 Submission of proposal 19 June 2016 Selection Selection of grant recipient by the IFAD Committee 1 July 2016 Notification of the outcome to all applicants 4 July 2016 Approval IFAD internal review process July-August 2016 Finalization of the Grant Design Document 21 August 2016 IFAD management approval process September-October 2016 Final approval by IFAD s Executive Board by December 2016

11 APPENDIX A. Application form (overview information) 1.Name of the organization 2.Abstract (approximately 250 words) A.SUMMARY 3.Total budget (US$) (specifying the amount to be covered by IFAD and the amount tobe covered (in-kind and/or incash) by the lead applicant institution and/or its partners, if envisaged) B.APPLICANT INSTITUTION 4. Legalstatus (with specific reference tonon-profit/for-profit status 4 ) 5. Audited financial statements covering the past two years (for this invitation to bid lead applicants to provide only a declaration that they will be able, if selected, to provide audited financial statements) 6. List of record and references to financial co-operatives projects specifying the role actually played by the applicant 7. Current operations and presence in developing countries (e.g.offices), if applicable C.IMPLEMENTATIONARRANGEMENTS 8.Bodies/divisionsor offices that will participate in the management of the programme 9. Principal staff who will manage the programme and will be the point of contact with IFAD,specifying her/his current job position and contact information a.programme Manager b.main collaborators (add rows as needed to state names,current job positions and roles/ main responsibilities in the programme; please attach the CVs of the staff participating in the programme and indicate it in the application form) 10.Nameofthe partner organization(s) Name: Job title: Contact: CV attached Name: Jobtitle: Main responsibilities: CV attached (YES)(NO) (YES) (NO) D.PARTNERINSTITUTION(ifapplicable) 11. Team leader(s) in the partner organization(s): Name: Contact: Job title: 12.Brief description of the role to be played by the partner in the programme 13.Budget to be sub-contracted 4 For profit companies need to fill an additional form and complete a due diligence sheet.

12 APPENDIX B1. Large Grant Project Proposal Required length: 15 to 20 pages maximum. SUMMARY TABLE (See Appendix B2.1) ACRONYMS I. BACKGROUND II. RATIONALE: RELEVANCE AND LINKAGES A. Link to outputs of Grants Policy and corporate priorities (IFAD Grant Policy: ) B. Alignment to Priority Area (for Global/Regional grants) C. Rationale for grant financing, for selected implementing agency and for recipient selection and recipient capacity III. THE PROPOSED PROJECT A. Target Group B. Overall Goal and Objectives C. Project Outputs and Outcomes D. Project Activities IV. PROJECT IMPLEMENTATION ARRANGEMENTS A. Implementing Organisation(s) B. Project Management and Implementation Period C. Monitoring, Evaluation and Reporting D. Indicative Workplan (including table showing timing of key activities) V. SUPERVISION, KNOWLEDGE MANAGEMENT AND SCALING UP A. Supervision Arrangements B. Knowledge Management plan (see Appendix B2.2) C. Scaling up and sustainability VI. PROJECT COSTS AND FINANCING A. Project Costs by Component/activity (text and table) (see Appendix B2.3) B. Project Financing, including table showing proposed project costs by category of expenditure for IFAD and other financiers(see Appendix B2.4) VII. FINANCIAL GOVERNANCE A. Procurement Procedures for Goods, Services and Human Resources B. Financial Management System, including accounting specifications C. Audit Arrangements ANNEXES 1. Results-Based Logical Framework max. 3 SMART outcome indicators (see Appendix B2.5) 2. Supporting Documentation to Grant Design Document (see Appendix C) 3. Financial management questionnaire (seeappendixc2)

13 APPENDIX B2. Large Grant Design Document: templates and guidance B2.1 Summary table template Grant title Recipient / Recipient address GRIPS ID IFAD grant originator Originating Division(s) For IFAD to fill For IFAD to fill For IFAD to fill Proposed IFAD grant US$ Co-financing US$ Total programme cost US$ Duration Grant goal, objectives and outcomes Themes addressed (see GRIPS) For IFAD to fill Links to grant policy and DSWP, and to corporate priorities Grant target groups and number of beneficiaries Main components Countries where activities will be implemented Implementation arrangements (including links to other IFAD interventions) Supervision and knowledge management

14 B2.2 Minimum requirements for Knowledge Management Plan At a minimum, a grant project s KM plan should outline what action project staff and implementation partners will take to ensure they are able to generate, access and use knowledge and information. This can then be used to: improve project performance; support efforts to scale up or replicate successes; and share lessons with wider audiences to achieve visibility, and for advocacy and influence. KM activities cannot be implemented in isolation, otherwise they will have little usefulness and impact. Effective approaches to managing knowledge need to be mainstreamed in the project implementation approach - encompassing analysis and evidence from project M&E and other sources, adequate information management, and planned internal and external communication. A basic KM plan should: Include links to project goal and objectives: how will this plan contribute to achieving project results and impact? Define strategic objective/s for project KM, which should be reviewed annually. Articulate the main areas of work preferably linked to the dimensions of KM outlined above: improving project performance; and scaling up successes and sharing lessons. Outline activities, including budget and timeline. Activities and budget should be included in project AWPB. Define target audiences and dissemination plans for documentation, events and other knowledge products. Define clear roles and responsibilities: encourage recipients to include specific KM and communication responsibilities in ToRs of project staff. Include indicators and monitoring methods, which are reflected in the project M&E system, in order to track results and impact of KM activities.

15 B.2.3 Project Costs by Component/Financiers Components Year 1 Year 2 Year 3 Year 4 Total IFAD Grant Amount (in US$) Component 1:. Component 2:. Component 3:. Sub-totals Financier/ partner (1) Co-financing amounts (in US$) Financier/ partner (2) if applicable Financier/ partner (3) if applicable Total Cofinancing Amount Total Project Amount Overheads Totals

16 B2.4 Project Financing Plan for IFAD Grant with Co-financing Allowed category of expenditure Year 1 Year 2 Year 3 Year 4 IFAD (US$) Salaries and allowances Co-financing (US$) Operating costs 5 Consultancies Travel and allowances (incl. hotels) Equipment and materials 6 Goods, services and inputs 7 Workshops 8 Training Management fees/overheads Total 5 Operating costs: includes rentals, utilities, cleaning, repairs and all that is used to operate the project. Please define kinds of underlying expenditures foreseen in this category to be incl. in Schedule 2 of IFAD s Grant Agreement. 6 Equipment & Material could include: PCs, phones, machinery for the use of the project. 7 Could include seeds, fertilizers. 8 Includes dinners, meeting room rentals and equipment exclusively for the workshop.

17 B2.5 Results-based Logical Framework Objectives-hierarchy Objectively verifiable indicators Means of verification Assumptions Goal What is the goal to which the intervention will contribute? What are the key indicators related to the goal? (Also see RIMS indicators) What are the sources of information for measuring progress against these indicators? Objectives What are the overall objectives to which the action will contribute? List the specific objectives of the grant application. What are the key indicators related to the objectives? Which indicators clearly show that the objective of the action has been achieved? (Also see RIMS indicators) What are the sources of information for measuring progress against these indicators? Which factors and conditions outside the recipient s responsibility might affect the achievement of the objectives? (external conditions) Which risks should be taken into consideration? Outputs What are the outputs and outcomes necessary to achieve the objectives? What are the indicators to measure whether and to what extent the action achieves the expected results? (Also see RIMS indicators) What are the sources of information for measuring progress against these indicators? What external conditions must be met to obtain the expected results on schedule? Key Activities What are the key activities to be carried out and in what sequence are they to be carried out in order to produce the expected results? (group the activities by result) What are the indicators to measure the key activities undertaken? (Also see RIMS indicators) What are the sources of information for measuring progress against these indicators? Which pre-conditions must be met before the action starts?

18 APPENDIX C. Supporting financial and legal documentation C.1 Supporting documentation for grant design document 1. Legal documentation, including evidence of legal status and capacity, registration and good standing, evidence of the authority of the person who will sign the agreement for the recipient. The recipient must demonstrate that it has been registered and that its registration is current (evidence of good standing no more than 90 days old), that it has the corporate capacity to enter into the Grant Agreement, accept the Grant and carry out the Project, and that the person signing the agreement has the necessary authorization. Different jurisdictions have different laws, so the actual documentation required may vary. As a rule, the recipient must be registered in an IFAD Member State. Legal documentation is not required for United Nations agencies or CGIAR institutions. Yes No Not applicable 2. Financial documentation, including the name/address of independent auditors, institutional audited financial statements and audit reports. Audit reports must be signed and dated on Auditor s letterhead. For recipients that have not previously received an IFAD grant, two years audited financial statements and audit reports will be required. Otherwise, one year is sufficient. Financial documentation is not required for UN agencies or CGIAR institutions. For those recipients that have not been required to prepare audit reports, or whose audit reports have been qualified, the financial management questionnaire must be submitted (attachment 8 of the Grant Procedures). Yes No Not applicable 3. Recipient s procurement procedures. If the recipient does not have its own procedures, a declaration that it will use IFAD s Procurement Guidelines or other procedures acceptable to the Fund will suffice Yes No Not applicable 4. Procurement Plan. The Procurement Plan, defined in paragraph 6.1(xiii) of the IFAD General Provisions, should be prepared where goods and services worth more than US$ 200,000 are to be procured under the project (attachment 16 of the Grant Procedures). The Grant Sponsor should review the Procurement Plan to ensure, among other things, that the grant is not used to purchase equipment or other durable goods if it would be economically appropriate to lease the equipment instead and that such goods or equipment are suitable and required for the effective implementation of the project. Yes No Not applicable 5. Declaration by the recipient ( is acceptable) that it has read and accepted the Project Description and Project Budget. It is mandatory that the recipient has reviewed the Project Description and Project Budget before the Grant Package is submitted for Approval. Yes No Not applicable 6. Declaration by the recipient ( is acceptable) that it has read and accepted IFAD s Standard Large/Small Grant Agreement. The model Grant Agreement is available on the IFAD website, in attachment 14 of the Grant Procedures. Yes No Not applicable CFS Clearance: LEG Clearance: Date: Dates:

19 APPENDIX D. Financial management questionnaire The Financial Management Questionnaire (FMQ) should be used only in the following circumstances: The recipient has not received funds from IFAD in the past or for a considerable length of time, and is not able to provide current audited financial statements acceptable to IFAD. 9 The grant amount is significantly larger than the recipient normally manages. There is a need to reconfirm the recipient s financial integrity, including its financial management capacity. The FMQ contains questions designed to review the systems adopted by the recipient related to: a) budgeting, b) accounting, c) internal control, d) funds flow, e) financial reporting, and f) auditing arrangements. Based on the answers provided by the recipient, the grant sponsor and the grants officer will be able to assess the best way forward, including disbursement conditions, disbursement amounts, frequency of supervision, etc. Project: Self-assessment completed by: Date: IFAD review/assessment completed by: Date: Note: If there is more than one implementing entity, a questionnaire should be completed for each one. Topic Yes No N/A Review* Remarks/ comments 1. Implementing entity 1.1 What is the legal status/registration of the entity? 1.2 Has the entity implemented in the past projects financed by i) international financial institutions (IFIs), ii) United Nations agencies or iii) donors that are members of the OECD? If yes, please provide name and year. 2. Funds flow 2.1 In which bank will the grant account be opened? 3. Staffing 3.1 What is the organizational structure of the accounting department? Attach an organization chart. 3.2 Is the project finance and accounts function staffed adequately? 9 An external assessment by an audit firm or an audit report will have to be provided prior to first disbursement.

20 Topic Yes No N/A Review* Remarks/ comments 3.3 Is the finance and accounts staff adequately qualified and experienced? 3.4 Indicate key positions not contracted yet, and the estimated date of appointment. 3.5 Does the project have written position descriptions that clearly define duties, responsibilities, reporting lines and limits of authority for all officers, managers and staff? 4. Accounting Policies and Procedures 4.1 Does the entity have an accounting system that allows for the proper recording of project financial transactions, including the allocation of expenditures in accordance with the respective components, disbursement categories, and sources of funds? Will the project use the entity accounting system? Segregation of Duties 4.2 Are the following functional responsibilities performed by different units or persons: (a) authorization to execute a transaction; (b) recording of the transaction; and (c) custody of assets involved in the transaction? 4.3 Are the functions of ordering, receiving, accounting for, and paying for goods and services appropriately segregated? 4.4 Are bank reconciliations prepared by staff other than those who make or approve payments? Budgeting System 4.5 Do the budgets lay down physical and financial targets? 4.6 Are actual expenditures compared to the budget with reasonable frequency, and explanations required for significant variations from the budget? 4.7 Who is responsible for preparation and approval of budgets? Payments 4.8 Do invoice processing procedures provide for: Copies of purchase orders and receiving reports to be obtained directly from issuing departments? Comparison of invoice quantities, prices, and terms, with those indicated on the purchase order and with records of goods actually received? Comparison of invoice quantities with those indicated on the receiving reports? Checking the accuracy of calculations? 4.9 Are all invoices stamped PAID, dated, reviewed and approved, and clearly marked for account code assignment?

21 Topic Yes No N/A Review* Remarks/ comments Policies And Procedures 4.10 What is the basis of accounting (e.g., cash, accrual)? 4.11 What accounting standards are followed? 4.12 Does the project have an adequate policies and procedures manual to guide activities and ensure staff accountability? Safeguard over Assets 4.13 Is there a system of adequate safeguards to protect assets from fraud, waste, and abuse? 4.14 Are there periodic physical inventories of fixed assets and stocks? 4.15 Are assets sufficiently covered by insurance policies? Other 4.16 Has the project advised employees, beneficiaries and other recipients to whom to report if they suspect fraud, waste or misuse of project resources or property? 5. Internal Audit 5.1 Is there an internal audit department in the entity? 5.2 What are the qualifications and experience of audit department staff? 5.3 To whom does the internal auditor report? 6. External Audit 6.1 Are the entity s financial statements audited regularly by an independent auditor? Who is the auditor? 6.2 Are there any delays in audit of the entity? When are the audit reports issued? 6.3 Is the audit of the entity conducted according to the International Standards on Auditing? 6.4 Have any major accountability issues been brought out in audit reports in the past three years? 6.5 Is the project subject to any kind of audit by an independent governmental entity (e.g. the supreme audit institution) in addition to the external audit? 7. Reporting and Monitoring 7.1 Are financial statements prepared for the entity? If so, in accordance with which accounting standards?

22 Topic Yes No N/A Review* Remarks/ comments 7.2 What is the frequency of preparation of financial statements? Are the reports prepared in a timely fashion so as to be useful to management for decision making? 7.4 Are financial management reports used by management? 7.5 Do the financial reports compare actual expenditures with budgeted and programmed allocations? 7.6 Are financial reports prepared directly by the automated accounting system or are they prepared by spreadsheets or some other means? 8. Information Systems 8.1 Is the financial management system computerized? 8.2 Can the system produce the necessary project financial reports? 8.3 Are staff adequately trained to maintain the system? 8.4 Do the management organization and processing system provide safeguards of confidentiality, integrity and availability of the data?

23 APPENDIX E. General Conditions The criteria listed below apply for also for the grant recipient as well as for any sub-grantee within the set-up mechanism. The recipient will have full responsibility to ensure that all funding provided by IFAD through the grant will be disbursed to any sub-grantee (and to project benefifciaries) in line with the considerations listed in this section. 1. Conflict of interest. IFAD requires that the recipient provide professional, objective, and impartial advice and at all times hold IFAD s interests paramount, strictly avoid conflicts with other assignments or their own corporate interests and act without any consideration for future work. The recipient has an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of IFAD, or that may reasonably be perceived as having this effect. Failure to disclose said situations may lead to the disqualification of the recipient or the termination of the grant agreement. 2. Implementing partners. Eligible institutions are stongly encouraged to partner with other institutions in order to establish a consortium able to cover both geographic and thematic aspects of the project. In fact, North-South partnering between an institution located in a developed country and one or more located in developing countries is strongly encouraged by IFAD. In this case, only the lead applicant institution shall be responsible for the overall programme management, financial and technical reporting to IFAD and programme coordination, while the partner institution(s) will be sub-contracted by the applicant. In case of the lead applicant partnering with other organizations, a single application must be submitted to IFAD for consideration, clearly indicating the lead agency and the names of all collaborating partners. 3. Sub-contracting. The recipient may choose to sub-contract any part of the services under this agreement to a person or entity. If the subcontracting arrangement exceeds US$ 200,000 a grant sub-agreement between the lead grant recipient and the sub-contract implementing partner would be required. The lead recipient shall be fully responsible and liable for the delivery of the services performed by them or on their behalf. 4. Personnel. The lead recipient shall assign and provide such qualified and experienced personnel and sub-contracted consultants as are required to carry out the services under this agreement. The key personnel indicated in the proposal shall not be substituted without the prior approval of IFAD. If for any reason beyond the control of the lead recipient, such as retirement, death, medical incapacity, among others, it becomes necessary to replace any of the personnel, the recipient shall promptly arrange for such replacement with a person of equivalent or better qualifications. 5. Preparation of proposal. The lead applicant shall bear all costs associated with the preparation and submission of their proposals and contract negotiation. IFAD reserves the right to annul the selection process at any time without thereby incurring any liability to the applicant. This call for proposals does not commit or obligate IFAD to award a contract. 6. Value for Money. Applicant must clearly demonstrate that the IFAD grant will be substantially spent on proposed and finally agreed activities in the selected countries and should indicate the total percentage of IFAD s grant resources that will be committed to this effort. 7. Conditions. By submitting a proposal, applicants agree to abide by all the conditions set forth by IFAD (refer to Attachment 3 to the invitation , IFAD Grant Agreement).

24 Eligible Expenditures and Overheads under Grant Financing10 8. Eligible Expenditures are expenditures eligible to be financed under the Grant Agreement. Such expenditures must satisfy all of the following requirements. They must: a. meet the reasonable cost of goods, works or services required for the Project; b. be incurred in accordance with the approved Project Budget; c. be procured in accordance with the Recipient s Procurement Procedures; d. be incurred within the Project Implementation Period; e. be supported by adequate documentation; f. be verifiable by the Fund; and g. not involve a payment which is prohibited by a decision of the United Nations Security Council or any other policy of the Fund. 9. Taxes. The proceeds of the Grant shall not be used for the payment of taxes which are determined by the Fund to be excessive, discriminatory or otherwise unreasonable. 10. Expenditure categories. Expenditures to be financed by proceeds of IFAD Grants should normally be restricted to expenditures that can be attributed to the implementation of the activities agreed under the Grant Agreement and the Design Report. These can be broadly classified into direct and indirect costs. Guidelines for this classification is given below. 11. Direct costs. Direct costs are expenditures that are to be incurred only for the purposes of the financed operation, and that could be directly attributed to the expected project outputs. This category may include items such as consultants, staff time directly and only assigned to the project, training, travel, workshops, equipment, materials, research expenditures, publications, and operating costs directly linked to the project. a. Consultancy. Expenditures related to studies, technical assistance and other advisory services under the programme carried out by international and local consultants. Professional and consultant services are services rendered by persons who possess a special skill relevant to the project, and who are not officers or employees of the proposing organization. Anticipated services must be specified and justified in the proposal and information furnished on each individual s expertise, primary organizational affiliation, normal daily compensation rate, and number of days of expected service. Consultants travel costs, including subsistence, may be included under travel expenditure. If requested, the proposer must be able to justify that the proposed rate of pay is reasonable. b. Equipment and materials. Expenditures related to office equipment, motor vehicles and motor cycles, furniture, phones, computers. This should normally be limited to equipment or apparatus that is considered necessary for completion of the project. Office equipment would not normally be considered unless the project duration is 2 years or more. Confirm that goods and equipment proposed will be for intended purposes. Evaluate lease vs buy options. Grant funds should not be used to buy vehicles. If vehicles are absolutely necessary, leasing should be considered. If the implementation period is longer than 3-4 years, buying the vehicles could be considered, after also taking into account future running costs such as maintenance, insurance and taxes. The design document should specify the use of equipment at the end of the project. Where feasible, their property should be transferred to beneficiaries. c. Goods services and inputs. Expenditures related to goods and services procured for the project activities. 10 The listed criteria apply also for sub-grants within the set-up mechanism.

25 d. Operating costs. Expenditures related to recurrent costs under the Programme, rent (If it is an existing office space of the recipient, normally this cost should not be charged to the grant) and utilities for the project office, maintenance costs, and audit costs. e. Salaries and allowances. Expenditures related to the base salaries and allowances of the staff of the Grant Recipient directly assigned to the project/programme activities. Project budgets should separately identify senior administrative staff salaries, technical staff salaries, administrative / clerical staff salaries. Costs should be inclusive of all statutory levies that apply. Where part time staff are required, state the full time equivalents also. Salaries and allowance are typically not expected to exceed 30% of the total grant amount unless clearly justified. There should be no double counting with other administration overheads and project management costs stated elsewhere. f. Workshops. Expenditures related to the workshop meetings, venue, food and beverages, publication materials. g. Trainings. Expenditures related to specific training events for eligible beneficiaries identified in the design report. Where applicable, this will include all related expenditures such as venue hire, travel for participants etc. Training of Grantee s employees is excluded. h. Travel and allowances. Expenditures related to fares, per diems and hotel costs for full time staff, consultants and beneficiaries. Separately identify domestic and international travel. i. Sub-Grants. Where grant resources are expected to be sub-granted to other partner agencies or beneficiaries, the purpose of such sub-grants and identify of intended subgrantee / beneficiaries must be clearly stated. 12. Indirect costs. Indirect Costs refer to fixed or administrative overheads to be borne by the recipient. These may be stated as a fixed amount or a flat fee payable to the recipient for the execution of the grant, which should be calculated as a percentage of direct costs. They are expenditures that are in the nature of general administration expenses or overheads, which cannot be directly and easily identified. The amount of indirect costs should be reasonable, and normally expected to be no more than 8% of direct costs. IFAD grant funds may not be used for fixed indirect costs or core funding of the recipient (i.e. budget support). Care should be taken to avoid double counting (e.g. between a fee-based service to a recipient/implementing agency in addition to reimbursement of general overheads). The cost table included in design reports should clearly show indirect costs. Expenditures that are eligible for financing, along with the amounts allocated to each category, are specified in Attachment 3 to the invitation , IFAD Grant Agreement, under Schedule Allowable costs. Grant funding to recipients and sub-recipients should cover only allowable costs as specified in the financing tables of the Grant Agreement.