Indonesia Humanitarian Response Fund Guidelines
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1 Indonesia Humanitarian Response Fund Guidelines July OBJECTIVE The Humanitarian Response Fund for Indonesia (hereafter called HRF ) is a Non Governmental Organizations (NGOs) funding mechanism, aiming at providing immediate disbursed funds to assume short term humanitarian activities 1 in Indonesia, particularly in areas where funding gaps exist. Furthermore, the Fund should complement Government of Indonesia (GoI) efforts on emergency response, as regulated in Disaster Management Law no 24 / It main mandate is emergency response, thus priority is given to emergency response activity. Allocations percentages for emergency preparedness, emergency response and initial recovery are not defined; however, the allocation for emergency response must be the biggest. Humanitarian activities will focus on meeting short term emergency needs and re establishing basic living conditions; preventing and strengthening preparedness for the occurrence of such situation; and laying the ground for supporting durable solutions by meeting initial recovery or transitional needs. It is not intended to respond to chronic social problems and other long term recovery and development needs. HRF is not suitable for mitigation efforts, which need more resources (time and fund) than those that HRF provide. Projects that: o support the emergency rehabilitation of social service facilities (e.g. schools and health posts), o support the reestablishment of basic living conditions (e.g. short term provision of agricultural inputs, shelter materials, and income generation activities), o promote and lay the ground for the transition from emergency programmes to rehabilitation and development (e.g. trainings on building back safer, promotion on community hygiene), and 1 For purposes of determining eligibility of proposed projects, HRF adopts the Objectives and definition of humanitarian actions ratified in the Food Humanitarian Donorship Meeting Conclusions (Stockholm, June 2003): a) The objectives of humanitarian actions are to save lives, alleviate suffering and maintain human dignity during and in the aftermath of man made crisis and natural disasters, as well as to prevent and strengthen preparedness for the occurrence of such situations. b) Humanitarian action should be guided by the humanitarian principles of humanity, meaning the centrality of saving human lives and alleviating suffering wherever it is found; impartiality, meaning the implementation of actions solely on the basis of need, without discrimination between or within affected populations, neutrality, meaning the humanitarian action must not favor any side in an armed conflict or other dispute where such action is carried out; and independence, meaning the autonomy of humanitarian objectives from the political, economic, military or other objectives that any actor may hold with regard to areas where humanitarian action is being implemented. c) Humanitarian action includes the protection of civilians and those no longer taking part in hostilities, and the provision of food, water and sanitation, shelter, health services and other items of assistance, undertaken for the benefit of affected people and to facilitate to return to normal lives and livelihoods. 2 Article 48 of the Law comprises the management of emergency response as: rapid and targeted assessment of location, damage, and resources, identification of status of emergency response, rescue and evacuation of affected communities, fulfilment of basic needs, protection of vulnerable groups, and immediate recovery of vital infrastructure and facilities.
2 o support disaster preparedness initiatives (e.g. development of local and community contingency plans, earthquake/tsunami community drills) would be eligible on a case by case basis. The Fund is focused on new or unforeseen needs. It is designed to be accessed by NGOs who have presence on the ground; thus, large component of its fund should benefit directly to beneficiaries. International NGOs are highly encouraged to partnering with national or local NGOs in design, implementation monitoring and evaluation of project, in order to help strengthening their capacities. An NGO may use the fund as seed money to initiate humanitarian actions, which can be continued by other funding resources. 2. ACCESS TO HRF International and national humanitarian NGOs who are registered 3 with the GoI, member of IASC cluster coordination (if activated) and deemed to have sufficient capacity, capability and credibility to assume appropriate humanitarian activities may submit project proposals to the Office for the Coordination of Humanitarian Affairs (OCHA) in Indonesia. 3. ROLES OF THE PARTNERS The Humanitarian Coordinator (HC) is the custodian of the Fund with support from OCHA and aided by Advisory Board and Review Board. The HC gives final approval on proposed projects and signs Grant Agreement with NGO as implementing partner. S/he also leads fundraising efforts, with the support of OCHA. In exceptional circumstances, like an event of a time critical emergency, the HC can make funding decision without consulting the Review Board 4. In such instances, the HC will immediately notify the Review Board of his/her decision. The main roles of each partner are described below. 3.1 OCHA: OCHA is responsible for both programmatic management and financial administration of HRF and is therefore closely engaged in all aspects of the operation of the fund. Main roles of OCHA include: Manage HRF on behalf of the UN Humanitarian Coordinator (HC). Serve as the Secretariat of the Advisory Board and Review Board. The Board members are nominated from organizations that represent clusters, including IFRC 5, UNDP, UNICEF, UNHCR, WFP, WHO and FAO. OCHA reports regularly to the Board on approved projects, status of activities and financial status of the HRF. Perform a preliminary screening to ensure the proposed project meets the basic criteria and guidelines. OCHA will also seek technical advice from the related Review Board members and the Cluster Coordinators as required. In addition, OCHA will ensure consultation with existing 3 Ideally, registration should have expiration date not less than a year from date of proposal submission. For national NGOs, registration is from Kementerian Hukum dan HAM or local government agencies. 4 The HC will still require a recommendation from the relevant Cluster. 5 As Cluster Convener Page 2
3 coordination fora and focal points regarding the relevance of proposals and to ensure they meet priorities and fill critical gaps in the response. Based on the above review, present the proposals to the Board with recommendations for a) approval, b) rejections, and c) revision/modifications. OCHA is responsible for consolidating recommendations, technical comments and review results and informing respective parties accordingly. The processing time will 1 2 days for urgent emergency response type of project, and 4 5 days for post disaster and disaster preparedness type of project. Communicate the Board s decision to the applicants, and prepare a standard Agreement for signing by the applicant and the HC. Submit the signed agreement and HC endorsement letter to OCHA Geneva, and request a transfer of fund in two installments to an accredited bank, preferably US$ account. The first installment being 80% of the approved total, with the remaining 20% to be transferred upon receipt of a final narrative and financial report, and satisfactorily auditor report. In case audit result have questioned cost, material cost or high risk category of audit finding, implementing partners may provide relevant information to clarify the issue, but OCHA, on behalf of the HC, will take final decision on the final transfer of project fund. Monitor the projects through reports produced by the implementing partners and monitoring missions. Prepare a final narrative and financial report on the use of the funds and submits to OCHA Geneva for onward submission to the donors. Advise the Review Board on the requests for a no cost extension and budget realignment. Support the HC in fundraising for the HRF. Share and update HRF information publicly through OCHA website. 3.2 Advisory Board An Advisory Board chaired by the HC, OCHA as the Secretariat, and consisting of representatives from UN agencies, IFRC and NGOs is formed to serve an advisory function to the HC on strategic and policy issues. Official from Badan Nasional Penanggulangan Bencana (BNPB, National Agency for Disaster Management) is invited to participate in Advisory Board meeting, whenever possible. The Advisory Board should meet at a minimum on semi annual basis to discuss progress, review policy issues, and evaluate the effectiveness and value added of the fund in meeting its objectives. End of project reports, evaluation reports, and audit findings should be periodically summarized and presented to the Advisory Board for discussion. As part of its oversight function, the Advisory Board should periodically review the level of participation by local NGOs in the HRF, in order to strengthen the capacity of these organizations. Advisory Boards are encouraged to advocate for increased participation in the fund by local NGOs based on their strengths, capabilities, and the appropriateness of their grant proposals. An HRF Advisory Board can serve as a useful mechanism for donor coordination, and the HC may consider inviting key humanitarian donors that do not contribute to the HRF to participate in the Advisory Board as observers. Advisory Board is encouraged to participate in project monitoring visit in order to provide further strategic direction for HRF. Page 3
4 3.3 Review Board The HC will be assisted in proposal review and policy setting for the HRF through an inter agency Review Board. This board will include key UN humanitarian agencies and IFRC representatives. Feedbacks from relevant Review Board members should be sent to OCHA. The relevant Review Board member is intended, case by case, as the one whose expertise is related to the activity proposed. To help rapidness of proposal review, Cluster Coordinators are engaged to be Review Board, and their inputs shared and considered prior to recommending a proposal to the HC. The recommendations from the Review Board will be provided to the HC for his/her consideration. However, final authority lies with the HC and he/she may decide to seek additional advice and may in special cases decide not to follow the recommendations of the Review Board. In such cases the rationale for the decision will be recorded for the file and communicated to the Review Board. Review Board is encouraged to participate in project monitoring visit 3.4 Implementing Partners: Formulate proposals in consultation with stakeholders (e.g. targeted beneficiaries, local communities, local government, cluster focal persons etc.) and coordination mechanisms (e.g. clusters, field coordination mechanism etc.). Submit applications to OCHA for project funding. Submit supporting documents, e.g. latest annual reports, audited accounts, registration documents to OCHA. Sign a standard Agreement with OCHA specifying the terms and conditions applicable to the approved project. Prior to project implementation, send a letter informing about the programme to: Head of Legal and Cooperation Unit, National Agency for Disaster Management (Badan Nasional Penanggulangan Bencana/BNPB) Address: Jalan Ir. H. Juanda no. 36, Jakarta Pusat Fax: with a copy to relevant local government institutions, i.e. Badan Penanggulangan Bencana Daerah (BPBD) and other relevant government institution, for coordination purpose. Inform clusters (when activated) of progress of activities as part of overall cluster response. Facilitate the monitoring of the projects in collaboration with OCHA. Submit formal request letter to OCHA in case the project the project require a no cost extension. Brief progress of project activities must be included in the letter, which need to be submitted at least two weeks prior to the original end date of the project. Implementing partner must receive approval letter from OCHA to execute no cost project extension. Letter received expiration will require a new Agreement which may disrupt project work plan. Submit narrative and financial reports to OCHA as described below. In case that the project cannot be completed or need to be suspended due to particular reason (other than force majeure), implementing must immediately inform OCHA (who will then consult the HC) to reach for solution. Page 4
5 4. PROPOSAL SUBMISSION, PROJECT MONITORING AND FINAL REPORTS Applicants must use the standard Project Proposal and Budget format for project submission (please see Attachments). Applications must be in English. 4.1 Applications for Funding All organizations should follow the standard templates provided by OCHA when submitting an application. Any deviation from these templates or incomplete submissions can result in substantial delay in receiving a response. Applicants should ensure that all proposals meet the outlined objectives of the HRF, complement other actor s activities, and are coordinated with Disaster Management agencies (BNPB, BPBD, or other related government institutions), and Cluster Leads (when activated) to ensure its alignment with overarching response plan. Projects from agencies that are well established in the area of concern, and have a good track record and capacity will normally be considered preferentially over projects submitted by agencies new to the area. Projects are strongly encouraged to have Disaster Risk Reduction elements into their proposed activities. All applicants shall ensure that the IASC Gender Marker (attached) is included in the proposal. The IASC Gender Marker is designed to assist the Implementing Partners to mainstream gender during design, funding and throughout the project implementation. If the proposal is approved, applicant will sign a standard Agreement that is prepared by OCHA HQ in Geneva. The commencement of project is the date stated in the Project Document, which is an annex of the Agreement (not the date stated in the proposal). However, project can be formally implemented only when the Agreement is fully signed. The fund can not cover any cost borne before the project started. Projects should support emergency operations for not more than six months with a one (1) time no cost extension of maximum three months. 4.2 Financial and Administrative Aspects Budget should be presented in Microsoft Excel form A. Funding Limit Funding will cover a maximum of US$ 100,000 of project costs. Matching fund from other resources is encouraged. Funding will cover project activities for no longer than a six month period. In case of necessity, a maximum three months no cost extension can be granted by OCHA. The official request letter must be submitted to OCHA at least two weeks prior to the original end date of the project. At least eighty percent (80%) of the total project budget should be allocated to direct project inputs; and the rest should be allocated proportionately among personnel, administrative and other costs. Funding should ideally not cover the entire project costs; the NGO implementing partner is encouraged to contribute to the project with its own resources or other donor funding. Page 5
6 B. Expenditure Funding is not to be used: o for the purchase of major capital assets (vehicles, communications equipment, office equipment and office furniture). Equipment that costs minimum US$1,500 becomes property of OCHA. Implementing partners must get approval from OCHA before hand over to beneficiaries or other party, or further use the equipment after the project end. o to cover international travel expenses. o to cover NGO Head Office (Country Office, Regional Office or Headquarters) administrative overhead costs. Staff/personnel costs: o should be limited to the additional resources required by the NGO to implement the project. o for supervisory level will be decided on a case by case basis and should be cofounded by other sources. o cannot exceed the amount approved in the budget. o should not cover only national staff salary. o may cover full costs of personnel 100% dedicated to the project. o may include partial regular staff costs if they have demonstrable supervisory or support roles vis à vis the project (therefore, for example, not staff dedicated to another project); costs included (if any) for such staff may not exceed 25% of that staff member s overall costs for grant period. Funding of rental of equipment costs should be limited to the additional resources required by the NGO to implement the project. In country administration/operation support costs (office rent, stationery, communication costs etc) are to be decided on a case by case basis for each project, but may not exceed seven percent (7%) of the budget and must be specified. The cost of import or customs duties (or any similar fee) imposed by overseas governments on goods imported or services provided cannot be covered by the HRF. Expenses within a budget line must not exceed the approved budget line by more than ten percent (10%) without the approval of OCHA, and must be matched by equivalent decreases in other lines. A budget line for contingency expenses cannot exceed three percent (3%) of the total project costs. The NGO implementing partner must address a letter with full and detailed justification to OCHA requesting authorisation for using the contingency fund. Contingency fund is provided only for: o changes in price (inflation), exchange rate variation in the executing currency visa a vis US$, and o minor oversight in estimating the cost of activities. In the situation where the fund is redeployed for costs that are not covered in the approved budget, the NGO should submit budget realignment. Such fund redeployment should involve only critical costs that will affect the continuity of the project and should not exceed the overall project cost. Audit o Is to be conducted as a prerequisite to the disbursement of the final 20% of funds. OCHA will request UN service provider to hire a reputable audit firm to conduct HRF project audit through a competitive bid process. Audit cost is the responsibility of OCHA and not to be included in project budget. Page 6
7 o The auditor may conduct operational and financial audits of the project. It is likely that auditor will visit the completed projects and look for evidences. In this case, implementing partner should make itself available to accompany the visit. For auditing purposes, project accounting records shall be retained for five years following the project termination. 4.3 Project Monitoring Every HRF project should be monitored by OCHA, through communication with implementing partner staff, submitted project activities reports, or monitoring visit. Relevant Review Board member (who is also a Cluster Coordinator) should assist in project monitoring. When conducting a visit, OCHA is expected to: Discuss with project staff on project progress, review administration, control and reporting mechanism. Interviews local government or local leaders. Interviews beneficiaries and non beneficiaries. Board members, donor, government and other stakeholders may participate in project visit. Results of the visit should be shared to implementing partners. Advisory board and Review board members should actively monitor project activities that are relevant to their cluster and expertise. OCHA may work with partner to help monitoring the project. In this context, the aimed of monitoring is ensuring the alignment of project implementation with GOI plans (for example: Rehabilitation and Reconstruction Action Plan, and Early Recovery Plan). 4.4 Reporting For projects with duration of more than three months, brief mid term narrative (2 3 pages) and financial reports should be submitted in the middle of the project duration. Any constraints (financial, logistical, security etc) affecting the project should be included in the report or reported directly to OCHA. Within two months of completion of the project, a final report must be submitted. The final report must describe the project activities, background, planned objectives, activities and actual accomplishments. The report should include lessons learnt and an explanation of any variance between planned and actual outcomes. The report should be presented in the same format as the project proposal. The final report must include a final account of project spending, accompanied by supporting documentation. The financial report must be presented according to the budget proposal format. If there is any unspent money it should be returned to OCHA within two months. D. Visibility HRF logo should be presented appropriately in relevant project materials for the purpose of project identity. HRF logo may go together with NGO partners, government institutions and other donor partners. Page 7
8 Proposal Review Process Humanitarian Response Fund Guidelines 2011 Basic Project Criteria Identified Priority Needs Proposal Submitted Proposal Reviewed by HC/OCHA (3) Proposal sent back for modification (max 5 working days) Input from sector task force / cluster (1) Meets Criteria, Matches Needs (2) Does not meet Criteria or match needs Proposal Goes to Review Board Proposal Rejected HC Approves Project Proposal Accepted OCHA Informs applicants of acceptance, ensures agreement is signed between HC and Applicant, requests transfer of funds Funds are transferred to the Agency Page 8
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