CERF TRAINING DAY ONE Making a difference… faster THE CENTRAL EMERGENCY RESPONSE FUND THE CENTRAL EMERGENCY RESPONSE FUND

CER

F TR

AIN

ING

DA

Y O

NE

Making a difference… faster Making a difference… faster

THE CENTRAL EMERGENCY RESPONSE FUND

THE CENTRAL EMERGENCY RESPONSE FUND

CER

F TR

AIN

ING

DA

Y O

NE

What is CERF?GA Resolution 60/124

What is CERF?GA Resolution 60/124

Humanitarian funding mechanism established by the UN General Assembly to enable more timely and reliable assistance

Launched in March 2006 to upgrade the Central Emergency Revolving Fund

Intended to complement existing humanitarian funding and coordination mechanisms such as the UN Consolidated Appeals

Humanitarian funding mechanism established by the UN General Assembly to enable more timely and reliable assistance

Launched in March 2006 to upgrade the Central Emergency Revolving Fund

Intended to complement existing humanitarian funding and coordination mechanisms such as the UN Consolidated Appeals

CER

F TR

AIN

ING

DA

Y O

NE

What is a “pooled fund”?1. Pooled funds are funding mechanisms that were

established to improve the weaknesses in financing humanitarian operations. They aim at providing more adequate and predictable funding and thus improving the efficiency of humanitarian action.

2. Pooled funds are funding mechanisms whereby donors provide funding to a common pool instead of directly to recipient agencies. The pooled funding is then managed by the ERC (in case of CERF) and HC/RCs (in case of CHFs and ERFs). This funding is allocated through inclusive participatory processes to the most critical humanitarian needs.

CER

F TR

AIN

ING

DA

Y O

NE

Basic information on pooled funds

Central Emergency Response Fund Common Humanitarian Funds Emergency Response Funds

Purpose: Provide rapid response funding in sudden onset situations and for underfunded emergencies

Fund type: Global fund

Management: ERC with support of the CERF Secretariat

Recipients: UN Agencies (NGOs can become implementing partners)

Size: 450 million a year

Average allocation size: $914,000

Purpose: Provide core funding and funding for sudden emergencies

Fund type: Country-based

Management: HC/RC with support of OCHA field offices

Recipients: NGOs and UN Agencies

Size: Typically 10% of total country humanitarian funding


Purpose: Provide funding for sudden emergencies

Fund type: Country-based

Management: HC/RC with support of OCHA field offices

Recipients: NGOs and UN Agencies

Size: small funds for sudden needs


CER

F TR

AIN

ING

DA

Y O

NE

More timely and predictable humanitarian financing to ensure and enable a prompt response to new or rapidly deteriorating crises by providing emergency funds

Reinforces the leadership role of the Resident/Humanitarian Coordinator

Utilizes the cluster approach for project vetting/prioritization

More timely and predictable humanitarian financing to ensure and enable a prompt response to new or rapidly deteriorating crises by providing emergency funds

Reinforces the leadership role of the Resident/Humanitarian Coordinator

Utilizes the cluster approach for project vetting/prioritization

CERF is an integral part of Humanitarian Reform

CERF is an integral part of Humanitarian Reform

CER

F TR

AIN

ING

DA

Y O

NE

Mandate of the CERFMandate of the CERF

Promote early action and response to reduce loss of life

Enhance response to time-critical requirements

Strengthen core elements of humanitarian response in underfunded crisis

Promote early action and response to reduce loss of life

Enhance response to time-critical requirements

Strengthen core elements of humanitarian response in underfunded crisis

CER

F TR

AIN

ING

DA

Y O

NE

Who is eligible?Who is eligible?

United Nations funds, programmes and specialized agencies

International Organization for Migration (IOM)

United Nations funds, programmes and specialized agencies

International Organization for Migration (IOM)

NGOs cannot apply directly for CERF fundsNGOs cannot apply directly for CERF funds

CER

F TR

AIN

ING

DA

Y O

NE

How to access funds?How to access funds?

Rapid Response and Underfunded Windows

Application submission

Life-saving criteria

Rapid Response and Underfunded Windows

Application submission

Life-saving criteria

CER

F TR

AIN

ING

DA

Y O

NE

IASC Humanitarian Financing Group

OCHA field & regional offices,

OCHA CRD

UN HQ Controller’s office

UN agencies at HQ, regional and

country levelAffected populations

ImplementingPartners

(Governments, NGOs)

Resident/HumanitarianCoordinators

CERF Donors

ERC/CERF Secretariat

CERFAdvisory

Group

CERF

CERF Stakeholders

INTRODUCTION TO THE CERF

CER

F TR

AIN

ING

DA

Y O

NE

Top Ten Recipient Countries 2006-2012

Top Ten Recipient Countries 2006-2012

CER

F TR

AIN

ING

DA

Y O

NE

Donors have demonstrated their confidence in CERF

Donors have demonstrated their confidence in CERF

CER

F TR

AIN

ING

DA

Y O

NE

CERF Funding by Agencies 2006-2012

CERF Funding by Agencies 2006-2012

CER

F TR

AIN

ING

DA

Y O

NE

CERF Funding by Sector 2006-2012

CERF Funding by Sector 2006-2012

CER

F TR

AIN

ING

DA

Y O

NE

Rapid Response Rapid Response 67%67%

Rapid Response Rapid Response 67%67%

Underfunded Underfunded First Round First Round

21%21%

Underfunded Underfunded First Round First Round

21%21%

Underfunded Underfunded Second Round Second Round

12%12%

Underfunded Underfunded Second Round Second Round

12%12%

CERF Funding by Window 2006-2012

CERF Funding by Window 2006-2012

CER

F TR

AIN

ING

DA

Y O

NE

Rapid Response Funding by Emergency Type (2012)

Rapid Response Funding by Emergency Type (2012)

CER

F TR

AIN

ING

DA

Y O

NE

2012 Underfunded Grants2012 Underfunded Grants

FIRST UNDERFUNDED WINDOWFIRST UNDERFUNDED WINDOW13 Countries13 Countries

$104 million $104 million

SECOND UNDERFUNDED WINDOW

SECOND UNDERFUNDED WINDOW8 Countries8 Countries

$55 million $55 million

CER

F TR

AIN

ING

DA

Y O

NE

Performance and Accountability

Framework

Performance and Accountability

Framework Clarifies performance expectations and management accountabilities

Flexible and straightforward while ensuring appropriate level of transparency and accountability

In 2013, PAF reviews include the Sahel, DRC, Yemen, Pakistan.

Clarifies performance expectations and management accountabilities

Flexible and straightforward while ensuring appropriate level of transparency and accountability

In 2013, PAF reviews include the Sahel, DRC, Yemen, Pakistan.

CER

F TR

AIN

ING

DA

Y O

NE

CERF Five-year EvaluationCERF Five-year Evaluation

A major milestone

16 country-case studies and 6 field visits

Implementation tracked through Management Response Matrix

A major milestone

16 country-case studies and 6 field visits

Implementation tracked through Management Response Matrix

CER

F TR

AIN

ING

DA

Y O

NE

Co

te d

’Iv

oir

e ©

Ale

xis

A

del

e/IR

IN

[email protected]@un.org

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

THE CERF GRANT COMPONENT

DAY

ONE4

SESSIONWORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

Rapid Response • Promote early action and response to

reduce loss of life • Enhance response to time-critical

requirements

Underfunded Emergencies• Strengthen core elements of humanitarian

response in underfunded crises


Objectives by Grant Window

CER

F TR

AIN

ING

DA

Y O

NE

• Allocations to new needs• Process initiated by RC/HC, with the

support of the HCT• ERC’s decision-making based on

best information available at time of application (i.e. needs assessments)

• Timeframe for implementation is six months

Differences

Rapid Response Underfunded Emergencies

• Regular allocation to poorly funded emergencies: twice a year

• Process initiated at headquarters • ERC selects countries and provides an

amount (upon consultation with CERF, UN agency headquarters and OCHA)

• Selection of recipient countries based on analysis of funding and vulnerability data

• RC/HCs and HCTs then prioritize and submit projects for funding

• Timeframe for implementation is around 9 months


CER

F TR

AIN

ING

DA

Y O

NE

1. Philippines Typhoon 2012

2. DR Congo 2012 IDP Crisis

3. Cote d’Ivoire 2012 Cholera Outbreak

4. Turkey 2012 Syrian Refugee Crisis

5. Algeria 2013 Sahrawi Refugee Operation

Exercise

Case Grant window


1. Rapid Response

2. Underfunded Emergencies

3. Rapid Response

4. Rapid Response

5. Underfunded Emergencies

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

RAPID RESPONSE WINDOW

DAY

ONE4

SESSIONWORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

Promote early action and response• sudden onset emergencies or crises,

both natural disasters and complex emergencies

• rapid deteriorations of existing complex emergencies

Enhance response to time-critical requirements:

• respond to slow-onset natural disasters• time critical funds to prevent escalation,

reduce costs & impact


Objectives

Maximum allocation per emergency$30 million

CER

F TR

AIN

ING

DA

Y O

NE

RC/HC with support from the country team reviews needs assessment data, identifies

gaps, sets priorities and establishes criteria for the selection of projects.

Agency signs approval letter. CERF funds are

disbursed to agencies at HQ level

RC/HC reviews project proposals and submits package to the ERC & CERF Secretariat

giving his/her endorsement

CERF Secretariat reviews submission against

CERF life-saving criteria in consultation with OCHA

ERC approves grants;

Approval letter issent to agency HQ

Project implementation,

´monitoring, evaluation and reporting from both agency and RC/HC at country level

Onset or significant deterioration of

a crisis, time-critical requirement

Decision-Making Process


CER

F TR

AIN

ING

DA

Y O

NE

• Selected projects should be: (a) based on needs assessments, (b) essential for the immediate humanitarian response

(prioritized by the RC/HC and Humanitarian Country Team),(c) life-saving, as defined by the CERF criteria (LSC).

• Grant period: Funds must be expended and activities completed within 6 months of disbursement

Project Selection Criteria

NEW !!


CER

F TR

AIN

ING

DA

Y O

NE

• Within the context of a sudden humanitarian crisis, the RC/HC determines whether an inter-agency response is required. If yes, rapid needs assessments are undertaken and roles and responsibilities are assigned (including cluster/sector leads)

• RC/HC triggers a Flash Appeal and HCT/partners begin defining humanitarian needs, priority sectors, projects, etc.

• At the same time, RC/HC may make a CERF request to jump start planned operations. Based on a draft response strategy, RC/HC determines CERF funding priorities, collects project proposals and prepares package for the ERC and CERF Secretariat. The RC/HC immediately sends whichever is ready first. The projects proposed to the CERF must be included in the Flash Appeal.

Flash Appeal and CERF Rapid Response


CER

F TR

AIN

ING

DA

Y O

NE

Old LoU Umbrella LoU

Implementation period

3 months 6 months

Eligible costs Up to 3 months Up to 6 months

ExtensionsExtensions usually granted if made within the implementing period

Extensions will not be granted except in EXCEPTIONAL circumstances

Project start date

Disbursement date Disbursement date unless an earlier start date is specified

Reprogramming Shift of 15% or more between budget lines or change in project scope

Cumulative shift of 15% between budget categories or change in project scope (no increases in staff costs or PSC)

New Umbrella LoU


CER

F TR

AIN

ING

DA

Y O

NE

Example

Philippines 2011 Flooding

•OCHA Philippines contacted CERF on behalf of HC in regard to potential submission in response to floods on 28 June. CERF Secretariat forwarded current application template and guidance.

•Telecom held with CERF Secretariat and OCHA Philippines on 30 June – to discuss submission and answer questions.

•Draft submission received on 8 July – CERF responded with comments on the same day;

•Official submission received on 13 July; two projects were fine; clarifications were requested by email on the same day;

•14 July a revised submission was received addressing all clarifications.


CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

UNDERFUNDED EMERGENCIESWINDOWDA

Y O

NE4SESSION

WORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

• Objective: Promote equitable response to protracted crises• Two rounds per year (January / February & July / August)• Approximately 1/ 3 of grant element • In 2012: Total allocated for UFE window was $158 million

UNDERFUNDED EMERGENCIES WINDOW

The Basics

First round allocated $104.5 million for 13 countries – frontloadingSecond round allocated $54.5 million for 8 countries

CER

F TR

AIN

ING

DA

Y O

NE

2012 – Underfunded Rounds

CER

F TR

AIN

ING

DA

Y O

NE

CAP Countries Analysis

ERC selects countries for allocations

Non-CAP Countries Analysis

- Financial data analysis from FTS on CAP coverage - Vulnerability data analysis

- UN agencies recommendation - Financial data analysis from UN agencies and IOM (crosschecked in FTS) - Vulnerability data analysis

ERC decides apportionment (amount)

to selected countries


Process

CER

F TR

AIN

ING

DA

Y O

NE

Launch of the process

1st agency HQs Consultation (UF Working Group) CERF completes CAP funding analysis based on FTS reportingDeadline for agency recommendations of 10 non-CAP countries Deadline funding and severity analysis for CAP and non-CAP countries followed by consultationsFurther consultations with UN agencies and IOM, within OCHA and with

and RC/HCs to finalize country selection and apportionment

Mid-January ERC announces selected countries and allocations25 January RC/HC’s office to submit one-page prioritization strategy

15 February Deadline for CAP country application packages22 February Deadline for Non-CAP country application packages by RC/HCs

31 March 2013 Closure of 1st 2013 UFE round


Timeline 1st 2013 UFE Round (tentative)

November 2012

December 2012

January 2013

February 2013

March 2013

CER

F TR

AIN

ING

DA

Y O

NE

Case Study

Eritrea 2012

Underfunded Working Group (UFWG) members recommended Eritrea due to:• The residual effects of the 2011 Horn of Africa drought resulting in chronic food

insecurity. • The ERC recommended an underfunded allocation of US$4 million and encouraged the

Humanitarian Country Team to focus on the most immediate life-saving activities rather than chronic under-development issues.

• The Humanitarian Country Team in Eritrea had received a rapid response allocation to address the drought in 2011; however, limited funding by donors left some needs unmet.

• Due attention was required to ensure that underfunded and rapid response grants were well-coordinated.


CER

F TR

AIN

ING

DA

Y O

NE

Case Study

Somalia 2012

An underfunded allocation was not recommended for Somalia in 2012 due to:• The significant funding received by humanitarian agencies in Somalia in 2011, which

covered 86% of the CAP requirements.• Additionally, there were potentially large amounts of carry-over funding available in

2012.


CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

APPLICATION PROCEDURE (FOR RAPID RESPONSE AND UNDERFUNDED EMERGENCIES)

DAY

ONE4

SESSION

WORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

• Template available at: (http://cerf.un.org). • For countries with an appeal (CAP or Flash Appeal), it is expected

that proposals submitted to the CERF complement activities prioritized in the appeal.

• The OCHA field or regional office supports the RC/HC in facilitating the application process.

• In all cases proposals should be sent as a package with a cover letter from the RC/HC to the ERC – with a copy to the CERF Secretariat ([email protected]).

CERF Application Procedure

CERF Application Template

CER

F TR

AIN

ING

DA

Y O

NE


Composition of a CERF grant package

Prepared by the Office of the RC/HC with the support of OCHA and the inputs of the Humanitarian Country Team, to be sent to the ERC

Cover letter

I. Applicant information

II. Overall grant request

A) Summary

B) B) Humanitarian context and response

C) Grant request justification

D) Project allocation table

Prepared by the agencies requesting funds

III. Agency project proposal (narrative and budget)

CER

F TR

AIN

ING

DA

Y O

NE


Cover Letter (by the RC/RC)

example

CER

F TR

AIN

ING

DA

Y O

NE


I. Applicant Information

CER

F TR

AIN

ING

DA

Y O

NE


II. Overall grant request - Summary

CER

F TR

AIN

ING

DA

Y O

NE


II. Overall grant request – Context & Justification

CER

F TR

AIN

ING

DA

Y O

NE


II. Overall grant request – Project allocation table

CER

F TR

AIN

ING

DA

Y O

NE


II. Overall grant request – Project allocation table example

CER

F TR

AIN

ING

DA

Y O

NE


III. Agency project proposals

CER

F TR

AIN

ING

DA

Y O

NE


III. Agency project proposals (2)

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

QUESTIONS AND COMMENTS

DAY

ONE4

SESSIONTHANK YOU

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

THE CERF LIFE-SAVING CRITERIA

DAY

ONE5

SESSIONWORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

1. Review process for revised life-saving criteria (January 2010)

2. Key definitions

3. Discuss possible life-saving activities according to CERF definitions

4. Practical exercises: review summary of submitted proposals and discuss if they should be recommended to the ERC


Objectives of this session

CER

F TR

AIN

ING

DA

Y O

NE

• The Two-Year Evaluation Independent Report (2008) recommended: Life-saving criteria should be placed in the context of core emergency needs Target the CERF more precisely so that the prioritization of needs becomes

clearer. Ensure that CERF only funds activities arising out of humanitarian emergencies,

both rapid and chronic. A certain degree of flexibility must be present in their application depending on

the context

• In 2009: Consultations with global cluster leads, UN agencies, IOM and the CERF Advisory Group.

• 26 January 2010: The revised life-saving criteria were approved by the ERC


Revision

CER

F TR

AIN

ING

DA

Y O

NE

Projects must be for: • life-saving activities• core emergency humanitarian programmes defined as:

Activities that within a short time span remedy, mitigate or avert direct loss of life, physical harm or threats to a population or major portion thereof.

Also permissible are common humanitarian services that are necessary to enable life-saving activities (see Logistics and Support Services in LSC)


CERF Funding Criteria

CER

F TR

AIN

ING

DA

Y O

NE


Examples by Sector

SECTOR CRITERIA EXAMPLES

Agriculture Activities that have a direct and immediate impact in protecting and restoring the livelihood of families affected by an emergency

Provision of seeds, tools and fertilizer to restore food production capacity, survival of productive animals when primary source of livelihood, initial inputs for plague control

Coordination and Support Services (Common Services)

Activities that support the delivery of priority life-saving activities provided by UN agencies, NGOs and governments in emergency response

Emergency telecommunications equipment, evacuation services, transport, Joint Logistics Centers, safety and security measures

Education in Emergencies

Interventions aiming at restoring educational and recreational activities for children and adolescents during an emergency

School tents and other education material, emergency repair of primary education facilities, essential life-saving skills

CER

F TR

AIN

ING

DA

Y O

NE


Examples by Sector


Food Aid Provision of minimum food requirements / basic food rations to people affected by emergencies

General food distributions to fill gaps / pipeline breaks for the most vulnerable groups

Health Activities that have an immediate impact on the health of population affected by an emergency

Mass casualty management, Primary Health Care, SGBV response and psycho-social support, reproductive health emergency interventions, immunizations, outbreak control, HIV/AIDS emergency awareness, disease surveillance

Nutrition Management of severe and moderately acute malnutrition

Infant feeding in emergencies, micronutrient supplementation, therapeutic feeding centers

CER

F TR

AIN

ING

DA

Y O

NE


Examples by Sector


Shelter and NFIs Immediate provision of temporary/ semi-temporary shelter and basic NFIs for victims of disaster.

Provision and distribution of materials, construction / repair of emergency shelter, cash grants / cash for work on a case by case basis

Protection / Human Rights / Rule of Law

Activities aiming at providing physical, social and legal protection (access to basic rights) to individuals and families affected by emergencies or protracted displacement situations

Establishment of IDP/refugee camps, profiling of IDP / refugee populations for registration, child protection, SGBV response, psychosocial counseling and Human Rights awareness. Assistance for relocation and creation of minimum conditions for return

CER

F TR

AIN

ING

DA

Y O

NE


Examples by Sector


Water and Sanitation

Provision of minimum requirements of water, sanitation and hygiene standards in emergency situations

Provision of drinking water, emergency repair to wells/boreholes/pumps, water purification systems, sanitation systems, hygiene and sanitation supplies and awareness raising

Mine action Activities that create immediate conditions of physical safety of populations affected by an emergency

Emergency de-mining to allow humanitarian access, mine awareness and education

CER

F TR

AIN

ING

DA

Y O

NE

Coordination. • Under the RR window only, the CERF will fund one cluster coordinator

where this is demonstrated need for support. • This coordination person must be part of a larger agency project which

has been prioritized by the RC/HC and HCT. • Coordination will not be supported in a stand alone project.

Multi-Agency Assessments• The CERF will fund multi-agency needs assessments in new

emergencies, only under the RR window. • Must be supported by the RC/HC and the HCT. • The CERF will not fund single agency/sector specific assessments.


Cross-cutting activities

CER

F TR

AIN

ING

DA

Y O

NE

Activities not immediately life saving (eg. disaster mitigation, early warning, prevention and preparedness, economic recovery, poverty reduction, and disarmament)

Expenditures not covered by the CERF contributions:• Recurring budget costs (office and maintenance costs, bank fees, etc.)• Regular agency stockpiling • Capacity building and training (funded only if related to direct

implementation of emergency response)


The CERF will not fund:

CER

F TR

AIN

ING

DA

Y O

NE

In groups, discuss some paragraphs extracted from various CERF proposals submitted to the ERC. Please, determine whether or not they comply with the life-saving mandate of the CERF. Tick the appropriate box.

YES, THIS FALLS WITHIN THE MANDATE OF THE CERF NO, IS NOT APPROPRIATE FOR CERF FUNDING MAYBE, DEPENDING ON THE CONTEXT

In plenary, share answers and discuss.


Exercise

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING


DAY

ONE5

SESSIONTHANK YOU

CER

F TR

AIN

ING

DA

Y O

NE

TRAINING

CERF BUDGET AND ADMINISTRATION REQUIRIMENTSD

AY

ON

E6SESSION

WORKSHOP

CER

F TR

AIN

ING

DA

Y O

NE

• Understand administrative process for the funding of a CERF project

• Understand administrative issues causing delay of project approval and funds disbursement

• Understand eligible and non-eligible costs

• Be able to review a CERF project budget

Objective of this session

CERF BUDGET & ADMINISTRATION REQUIREMENTS

CER

F TR

AIN

ING

DA

Y O

NE

• CERF is a sub-account of the UN General Trust Fund, subject to the UN Financial Rules and Regulations, and all internal policies that govern trust funds

• UN Controller has oversight of the financial administration of the CERF

• CERF disbursements are actually advances which will not be reported to donors as expenditures until all projects financial reports are received from agencies


The Administrative Structure

CER

F TR

AIN

ING

DA

Y O

NE

Application arrives in CERF

Project and budget reviewed by CERF Secretariat

Project and budget approved by ERC

Approval letter (requires counter-signature) and final project proposal sent to agency

Agency returns counter-signed approval letter to CERF

CERF sends funds disbursement package to OPPBA

Funds disbursement by OPPBA (involving PPBD, Accounts Division, Treasury)


The Administrative Process

CER

F TR

AIN

ING

DA

Y O

NE

• Delay in any step in the process can cause delay in receipts of funds!

• Major finance-related delays by agencies:

Slow response to budget comments;

Delay in returning the counter-signed approval letter to CERF


The Administrative Process

CER

F TR

AIN

ING

DA

Y O

NE

Budgets must:

• Be mathematically sound • Transparent (itemized, based on real costs)• Show clear links to activities (consistent with the narrative)• Justify amounts requested for each class


Budgetary issues linked to programme

CER

F TR

AIN

ING

DA

Y O

NE

• Direct Costs: Costs as a direct consequence of the operation or deriving directly from the requirements of the grant.

A. Staff and Other Personnel Costs (staff, consultants, others) B. Supplies/Commodities/MaterialsC. Equipment D. Contractual ServicesE. Travel F. Transfers and Grants to CounterpartsG. General Operating and Other Direct Costs

Subtotal Direct Project Costs

• Indirect Programme Support Costs (PSC): General recurring costs of running an organisation, expenditures not included in other parts of the budget. CERF may consider eligible indirect costs up to 7% of the total of eligible direct costs.

• Total CERF Project Costs (direct costs & indirect PSC)


Budget template structure

CER

F TR

AIN

ING

DA

Y O

NE

Cost breakdown Unit Quantity Unit cost Total (USD)

A. Staff and Other Personnel Costs (please itemize costs of staff, consultants and other personnel to be recruited directly by the agency for project implementation)

B. Supplies, Commodities, Materials (please itemize costs of consumables to be purchased under the project, including associated transportation, freight, storage and distribution costs)

C. Equipment (please itemize costs of non-consumables to be purchased under the project)

D. Contractual Services (please list works and services to be contracted under the project)

E. Travel (please itemize travel costs of staff, consultants and other personnel for project implementation)

F. Transfers and Grants to Counterparts (please list transfers and sub-grants to project implementing partners)

G. General Operating and Other Direct Costs (please include general operating expenses and other direct costs for project implementation)

Subtotal Direct Project Costs

Indirect Programme Support Costs (PSC)

Total CERF Project Costs


Cost breakdown

CER

F TR

AIN

ING

DA

Y O

NE

A) Budget proposal shall be consistent with narrative project proposal

B) Provide Cost breakdown (transparency, details)

• Budget shall specify the costs required to implement the activities, e.g. personnel, goods, equipment, travel, training, operational facilities.

• If not possible to describe quantity of inputs, the budget shall split costs by outputs/results, e.g. explain no. of people to be trained, no. of latrines to be constructed.

• To the extent possible, the budget shall indicate unit, quantity and cost per unit for each item.



CER

F TR

AIN

ING

DA

Y O

NE

C) Non-eligible expenditures

• Any expense beyond the implementation period deadline• Government staff salaries• Regular/recurrent agency operations (e.g. maintenance, reserve or stock

supplies, capacity building or training)• Purchase of cars, ambulances, boats, motorbikes • Security cost (such as purchase of goods and services to ensure the

security and protection of personnel in one agency), or costs associated with MOSS compliance

• Facilitation of coordination• “General Operating Expenses” • Hospitality cost



CER

F TR

AIN

ING

DA

Y O

NE

D) CERF normally doesn’t finance 100% of a project

E) Annexes: For projects including large or complex acquisitions or contractual service arrangements, an annex should be attached indicating cost per item and quantity. Shall indicate total costs and reference to the annex in the main budget table.

F) Rounding: The amounts (except for unit cost) shall be rounded to the nearest USD amount.

G) Acronyms: Spell out all acronyms the first time. Providing a list of acronyms and abbreviations in an annex will be useful.

H) Implementation Period: Budget shouldn’t exceed 6 months for Rapid Response Window, and normally around 9 months for Underfunded Window.

I) Programme Support Cost (PSC): Maximum 7% of direct project costs.



CER

F TR

AIN

ING

DA

Y O

NE

• Miscalculation of budget lines • Financial requirements don’t match narrative project

proposal • Inclusion of non-eligible items • Lack of necessary details, non-transparent / unclear

cost descriptions • Miscalculated Programme Support Costs (PSC)


Most common budget problems

CER

F TR

AIN

ING

DA

Y O

NE

Subtotal Direct Project Costs $ 500,000

Programme Support Costs(maximum 7%) $ 35,000

Total CERF Project Costs $ 535,000

PSC must not exceed 7% of the Subtotal.


8

Programme Support Costs

Subtotal Direct Project Costs $ 500,000

Programme Support Costs(maximum 7%) $ 37,635

Total CERF Project Costs $ 537,635

This is 7% of the Total, but NOT 7% of Subtotal Direct Costs.

7% of $500,000 is $35,000

CER

F TR

AIN

ING

DA

Y O

NE

8EXERCISES

EXERCISES 1

WARMING-UP

EXERCISES 2-3

A BIT MORE CHALLENGING


8

CER

F TR

AIN

ING

DA

Y O

NE

Cost breakdown Unit QtyUnit cost Total ($)

A. Staff and Other Personnel Costs (please itemize costs of staff, consultants and other personnel to be recruited directly by the agency for project implementation) 50,000


Transport of food and water containers 50,000



E. Travel (please itemize travel costs of staff, consultants and other personnel for project implementation)



Subtotal Direct Project Costs 200,000


Total CERF Project Costs 200,000


Exercise 1- What is wrong with this budget?

CER

F TR

AIN

ING

DA

Y O

NE

Cost breakdown Unit QtyUnit cost Total ($)



Food transport and storage costs (storage $150,000 for 3 months, handling $150,000 for 3 months; transport by sea $200,000) 500,000

Food (rice, corn, oil, high energy biscuits) 2,000,000



E. Travel (please itemize travel costs of staff, consultants, other personnel for project implementation)


CARE: food distribution to 50,000 beneficiaries 500,000


Subtotal Direct Project Costs 3,000,000


Total CERF Project Costs 3,000,000



CER

F TR

AIN

ING

DA

Y O

NE

Cost breakdown Unit Qty Unit cost Total ($)



Rice MT 1,000 1,000 1,000,000

laptop computers laptop 4 2,500 10,000

Storage & handling of food month 2 245,000 490,000



E. Travel (please itemize travel costs of staff, consultants, other personnel for project implementation)



Subtotal Direct Project Costs 1,500,000

Indirect Programme Support Costs (PSC) 105,000

Total CERF Project Costs 1,605,000



CER

F TR

AIN

ING

DA

Y O

NE

• Agency may not get all their proposed financial requirements

• Project held up within CERF Secretariat and/or UN Controller’s Office Funds can not be disbursed until all budget problems are

resolved

• Audit issues Discrepancies in files will cause negative audit observations by

internal (OIOS) and external (Board of Auditors) auditors for OCHA and/or Controller’s Office.


What will happen when we do not fix budget problems?

CER

F TR

AIN

ING

DA

Y O

NE

Funds are more rapidly disbursed when:

• Project proposal include transparent and accurate budgets

• Agency quickly clarify, correct or revise budgets as required

• Agency quickly return the counter-signed approval letter to CERF


In summary…

CER

F TR

AIN

ING

DA

Y O

NE

TRAININGD

AY

TWO8

SESSION


THANK YOU

Documents

CERF TRAINING DAY ONE Making a difference… faster THE CENTRAL EMERGENCY RESPONSE FUND THE CENTRAL EMERGENCY RESPONSE FUND