Final Report on Capacity Review of Organization for Rehabilitation and

Development in Amhara (ORDA)

By: Abidan Development Consulting Group Plc

abidan

November 2016

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i. Acknowledgement This capacity review has been initiated by FHE and conducted by Abidan Development

Consulting Group Team under the guidance of FHE. Several individuals (ORDA’s senior staffs

and experts, FHE Management staffs and experts, and Government Stakeholders) have been

contacted and made significant contributions for the realization of this study. We would like to

thank all Institutions and Individuals whom we contacted and provided us with all the pertinent

information for the review.

We are grateful to ORDA’s management for the invaluable support, facilitation and coordination

at their office which helped us accomplish the planned activities as per the schedule.

Undertaking this assessment would have been very difficult without their cooperation and

supports.

We would also like to express our heartfelt gratitude to FHE team for their feedbacks and

technical advices in reviewing the data collection tools and methodologies and in facilitating

communication between ORDA and FHE Bihar Dar office. FHE Bahir Dar staffs have also

helped the assessment team in supplying necessary logistics and coordination and the assessment

team would also like to express its thanks for their kind and valuable supports.

Finally our gratitude goes to FHE for giving us the opportunity to conduct this assignment and

establish enduring partnership with it.

Abidan Development Consulting Group Plc

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ii. Table of Contents i. Acknowledgement .................................................................................................................... ii

ii. Table of Contents ..................................................................................................................... iii

iii. List of Acronyms ...................................................................................................................... 1

iv. Executive Summary .................................................................................................................. 2

I. Introduction ............................................................................................................................. 11

II. Background ............................................................................................................................. 11

III. Description of the assessment target groups ........................................................................... 12

IV. Objective and Scope of the Review ........................................................................................ 13

V. Methodology ........................................................................................................................... 14

5.1. Desk Review .................................................................................................................. 14

5.2. Quantitative/questionnaire based staff survey ................................................................ 16

5.3. Limitations of the Review ............................................................................................. 16

VI. FHE’s Overall Capacity Building Interventions ..................................................................... 17

VII. Assessment Findings Narration ............................................................................................. 18

7.1 Human Resource Management ........................................................................................... 18

7.2. Financial and Grant Management ...................................................................................... 22

7.3. Property and Resources Management ................................................................................ 30

7.4. Procurement Management.................................................................................................. 35

7.5. Program Management ........................................................................................................ 36

7.6. ORDA’s leadership engagement in capacity building support ........................................ 43

VIII. Relevance, Effectiveness, Efficiency, Sustainability and Impact of the capacity building efforts .. 46

8.1. Relevance of the capacity building support ....................................................................... 46

IX. Strength, Weakness, Opportunity and Threats of the capacity Building efforts .................... 49

X. Challenges ............................................................................................................................... 51

XI. Lessons learnt ......................................................................................................................... 51

XII. Conclusions and recommendations ....................................................................................... 52

12.1. Conclusion ........................................................................................................................ 52

12.2. Recommendation .............................................................................................................. 53

XII. Annex .................................................................................................................................... 57

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iii. List of Acronyms

BDARP Business Development Action Research Program

BoD Board of Director

BSC Business Score Card

CCTS Country Commodity Trucking System

CGA Capacity Gap Assessment

ChSA Charities and Societies Agency

CRS Catholic Relief Services

DFAP Development Food Assistance Program

DFID Department for International Development

ESMF Environmental and Social Monitoring Framework

EU European Union

FGD Focused Group Discussion

FHE Food for Hungry

FHEE Food for Hungry Ethiopia

GPS Global Positioning System

GTP Growth and Transformation Plan

HR Human Resources

HRM Human Resource Management

INGO International Non Governmental Organization

JD Job Description

KII Key Informant Interview

M and E Monitoring and Evaluation

NGO Nongovernmental Organization

ORDA Organization for Rehabilitation and Development in Amhara Region

PSNP Productive safety Net Programme

SP Strategic Plan

TOR Terms of Reference

USAID United State Agency for International Development

VAT Value Added Tax

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iv. Executive Summary Introduction: As part of the Development Food Assistance Program (DFAP), FHE has provided multifaceted capacity building supports which focuses on system development to ORDA. The objective of the support was to build ORDA’s capacity so that it can directly access USIAD grant. This capacity review is conducted with the aim of determining the contribution of these supports in enhancing ORDA’s capacity in the area of program management, financial management, human resource management, monitoring and evaluation, commodity management and leadership engagement in capacity building.

Methodology: The study employed both qualitative and quantitative methods to collect and analyze data. Secondary documents were reviewed to understand FHE capacity supports and generate the required secondary information. Focus group discussion (FGD) and key informant interview (KII) and observation were undertaken in participatory manner using checklist as a guide to collect qualitative information. The FGD was conducted with ORDA’s and FHE management staffs and experts. KII was made with senior government officials such as Head of the of Bureau of Agriculture and Head of NGO Desk in Finance and Economic Cooperation and Development Bureau of Amhara Regional State. Observation was made to see the availability and accessibility of manuals, procedures, and policies, to ORDA’s staffs. Questionnaire based staff survey has been used to generate quantitative information and then the information was fed to computer so as to be refined and analyzed (weighed) and used to substantiate the findings of the qualitative study and desk review.

Assessment Findings Narration Human Resource Management: Personnel policy: ORDA has put in place a system of revising its Human Resource (HR)

policy every two years and this enabled it to regularly update its policy documents by considering the dynamism of working environment and donor requirements.

Recruitments: Written recruitment guideline is in place and competency based recruitment process has been implemented. Significant improvement is made by furnishing a written Job Description (JD) for each staff of ORDA confirmed by the quantitative result which changed to (5/5) from (2/5) during the baseline time. The discussion with ORDA staffs confirmed that the contribution of the seconded capacity expat is enormous in bringing about this change.

Volunteers and internship management: To effectively manage the internship and get the best out of it, ORDA has drafted internship management guideline, which is in the process of approval by the management.

Staff Salary and benefits: Though some improvements were made, the salary and benefit package of ORDA remains low and this continues to be an obstacle and causes high staff turnover.

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Performance Appraisal: Balanced Score Card (BSC) is implemented to review employee’s performance and the process is participatory. Although some improvements have been registered by applying BSC, the scoring system is not as such strict and is largely undertaken for formality purpose.

FHE support for HR Department: valuable supports have been provided by FHE as a result staff familiarity with USAID partnership compliance is enhanced. Quantitative result (4/5) confirmed that HR team has the required knowledge about USAID grant management requirement.

In general, HR Department of ORDA has clearly worked on the capacity gap improvement plan developed by FHE. As a result significant improvements have been made on the major gaps identified during the capacity assessment in 2012 and 2014.

Financial and Grant Management Financial Policy, Systems and Procedures: financial policy of ORDA is strict and fully in

tune with all of ORDA’s Donors policies and requirement. The Finance team at ORDA’s headquarters has good knowledge of USAID’s financial regulation requirements and the quantitative result indicated that finance department is familiar with USAID financial/grant management procedure with the average point of (4.5/5) compared to the baseline result (2.8/5). However, the finance staffs at project offices level lack the requisite knowledge in this regard.

Internal control and Audits: ORDA’s internal audit and inspection department is responsible for supervising the proper utilization of resources. Audit policy and systems are in place and being implemented. ORDA is transforming from purely cash audit to performance audit following the recommendations of the capacity advisor of FHE. This is in fact one of the key contribution of FHE support in enabling ORDA to efficiently utilize the available resources.

Budget Planning: Donor and organizational based budget planning systems are in place and Organizational based budget planning is done on annual bases. Financial documents from the field office have to be reviewed by the internal audit and budget holder (program staff) before a record in the finance section is made. The system guarantees that the budget is controlled by three sections to ensure its effective utilization. A regular meeting is held with senior management and relevant program staffs to review budget status, i.e overseeing both the approved, expenditure, and revenue. Budget variances have been fully explained as per the required standards by the program department.

Financial Reporting: ORDA has improved its capacity to comply with the financial reporting standards of the donors. The quantitative baseline data (3.2/5) showed growth to (4.5/5) and indicated that finance staffs prepare quality reports using the standard procedures of donors and submit within the timeframe. FHE financial manager also confirmed that improvement has been observed in the timely delivery of financial reports and utilization of financial reporting formats of USAID. However, finance staffs at the field office did not get necessary support to deliver financial reports using the USAID reporting formats. ORDA staffs have reflected that improvement is made on the feedback mechanisms of financial reporting and the quantitative result (4.17/5) complements the qualitative findings.

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Financial sustainability and cost sharing: Resource mobilization strategies are developed. ORDA has been mobilizing the community and local government to contribute for the development projects it has been implementing. However, ORDA has no system as to how cost – sharing is tracked, monitored and reported to donors.

Grant Management: The exposure of working on USAID funded projects and programs as sub-grantee helped ORDA’s staffs to be familiar with the USAID grant management. But, roles and responsibilities of the grant management section are limited to facilitating project agreements and reminding project staff as the project agreement is approaching phase out stage to timely complete project activities. Though the grant management officers of ORDA are familiar with the USIAD grant management guideline they have not fully internalized it to regularly apply in their work.

Overall: Comparing with the baseline time in 2012 and 2014, ORDA has made remarkable improvements in most competency areas of financial management, which enabled ORDA to comply with donor requirements of grant management. Different capacity building supports were provided by FHE to enhance ORDA’s financial management capacity to comply with contract procedure of USAID. As a result, ORDA has in place a system that will help it fulfill USAID grant requirements. But, ORDA needs to work on cascading information to the project office so as to enable the finance staffs of the project at grassroots level to fully understand donor’s requirement in financial management.

Property and Resources Management Operational policy and systems: Written operational procedures are put in place for property

and resource management. The organization’s operational policy and systems are well understood by staffs and more specifically the staffs are aware of USAID funding requirements of vehicle utilization and maintenance etc.

Commodity Management: ORDA’s commodity management manual fully incorporates USAID commodity management requirements. The Country Commodity Tracking System is already instituted. Training offered by FHE on commodity management enabled ORDA to improve its store and commodity management. An experience-sharing program was organized to acquaint ORDA with the practice of international bid systems. However, ORDA has no experience handling commodity management from seaport, as this was not part of terms and condition of partnership agreement with FHE. But, lack of experience in managing commodities from seaport to distribution center is one key capacity gaps of ORDA.

Fixed asset management: A Written manual for property and transport management is under revision. The quantitative result (4.2/5) shows that ORDA has been implementing fixed asset registrar and this procedure is helps ORDA to effectively control its asset. However, there is gap in the fixed asset registration since it lacks documentation of depreciation rate calculation.

Logistic Management: Systems are established for field travel where each department develops Terms of Reference (TOR) indicating the purpose of travel, number of staff traveling, where to travel, duration, estimated budget etc and submit to finance and logistic

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sections at least two weeks before the travel day and this ensures effective resources utilization.

Procurement Management ORDA has procurement policy that adequately addresses the needs of the organization.

ORDA has decentralized the purchase system and the program offices are mandated to effect purchase of up to Birr 200,000.00. In addition, ORDA delegate program offices to make purchase beyond the limit depending on compelling conditions. It has also adopted a code of conduct applied to staffs engaging in the procurement of goods and services. FHE has provided an adequate and relevant capacity building support to ORDA on USAID commodity management. The quantitative result (3.5/5) confirmed that all purchase managers, senior management, project staffs and purchasers have full awareness about the items prohibited from purchase using the USAID fund. Moreover, ORDA has developed the capacity to manage international purchase.

Program Management

Donor compliance: The program section is well aware of the USAID requirements applicable; these include submission of work plan, marking and branding plan, environmental compliance plans, semi-annual, annual reports, inventory and VAT report etc. An average quantitative result (3.8/5) is fair enough in supporting the qualitative statements. So far, there is no practice of undertaking internal and external audit related to non-compliance with donors’ regulation. But recently due to the provision of training by FHE, they understand the importance of compliance audit.

Technical Reporting: ORDA has made improvements in timely delivery of reports even though the quality of reports in terms of presenting success or case stories and documenting lessons needs further improvements. ORDA’s staffs have clear understanding of the reporting formats and accordingly prepare and submit quarter and semi-annual narrative and financial reports using USAID reporting format.

Community involvement: the community to some extent participates in the project cycle and annual performance meeting and also influence decision in some instances. However, beneficiaries do not influence decision, especially once the project/programs are designed and approved by donors.

Knowledge Management and Diffusion of Technology: ORDA has only recently prepared knowledge management guideline that is not yet familiarized for staffs. There is no practice of regularly organizing learning and knowledge sharing event and the quantitative result is also complement with an average point of (2.4/5).

Proposal development and resources mobilization: ORDA mainly develops proposal based on call for proposal. Quality proposal development, networking and linkage, quality delivery of program at ground level are among some of the fund raising practice of the organization. However, there are not clearly defined structures and Terms of References for program designing team. Despite unclear structure, the success rate of proposal for funding has shown

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radical growth from the baseline (20%) in year 2014 to a success rate of 92% June 2016. The training on proposal writing has contributed in increasing the success rate of writing winning proposals and quantitative result (3.6/5) also supports the qualitative findings. The practice to internally appraise developed proposals is very limited and the proposal appraising committee does not also use the appraisal checklists of donors. ORDA is not strong in developing innovative proposal and need to work hard in this regard.

Culture and Gender: ORDA has clearly adopted guidelines for culturally relevant and/or gender-based approaches and programming. ORDA conduct gender analysis before intervention of any program so as to inform the program on the gender dynamics of the intervention areas. Despite several improvements, the gender section of ORDA has only one employee. Furthermore, gender integration work of ORDA is only at programming level. It is found that organizational performance in promoting gender is poor and women’s representation at both decision-making and overall staffing is low.

Monitoring and Evaluation: ORDA has in place monitoring and evaluation framework. There is a documented monitoring and evaluation plan, output and outcome indicators, data collection tools schedule, quality review and methods for sharing and using data. ORDA has been providing training on monitoring and evaluation, but as per the findings of quantitative result (3.2/5), ORDA need to do more work in this area. ORDA has been using monitoring and evaluation findings so as to improve the delivery of programs and projects and the quantitative data supports this result (4/5).

ORDA’s Leadership Engagement in Capacity Building Support

Networking and strategic Partnership: ORDA’s leadership perceived strategic partnership with stakeholders as a key tools to mobilize resources and extract new skills and knowledge. To enhance effective partnership, ORDA has developed Communication and Networking Strategy. This document defines ORDA’s audience and the management of ORDA believes that the communication and networking strategy helps to increase ORDA’s visibility.

Capacity building in Strategic Planning: ORDA’s recent strategic plan focused on building the capacity of ORDA to access big donors’ fund directly. Accordingly, ORDA’s Board and Management has made a decision to develop the fourth strategic plan in view of globally changing funding priorities, increasing competition in resource mobilization coupled with the unmet development needs of communities it has been serving. This strategic plan is envisaged to be used as a management tools to guide program management and implementation, resource mobilization, ensure community participation and empowerment, enhance stakeholder collaboration, efficient utilization of resource and ultimately change the livelihood of the end uses/people.

Contribution of ORDA’s Board of Directors to improve ORDA’s Capacity: the contribution of BoD in building the capacity of ORDA is very insignificant. Contrary to expectations,

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BoD has not been engaging in lobbying to strengthen ORDA’s partnership and networking with donors and enhances resource mobilization.

Relevance, Effectiveness, Efficiency, Sustainability and Impact Relevance: the capacity building plan is relevant to ORDA’s capacity need in system

development and establishing strong networking and partnership as well as in fully complying with USAID grand management procedures. It is found out during discussion that ORDA had been working with USAID supported projects as sub-grantee for many years. However, it had not created the requisite capacity that helped it fully comply USAID grant management procedures and directly access funds from USAID. Therefore, the capacity building supports of FHE was the right and the most relevant support for ORDA.

Effectiveness: The capacity building support started with a comprehensive capacity assessment which used as baseline capacity gap. The startup capacity assessment report has been indispensible to measure the changes brought by the capacity building support of FHE through the DFAP. Different activities were accomplished as per the plan, but except the failure of FHE to re-fill the seconded staff position in time. The implementation of capacity support initiatives has helped ORDA to improve its capacity meaningfully.

Efficiency: The enthusiasm and interest of ORDA’s management and staff to sap knowledge and skills from FHE has helped to ensure system development and transform the organization within a short period of time. Though deployed late, ORDA has utilized the skill and knowledge of the seconded staff efficiently to enhance its system development and meaningful changes have been made on the overall capacity of ORDA as a result. However, ORDA would have been benefited a lot from the skill and knowledge of the expat had the expat used the allocated time fully.

Impacts: the capacity building support enabled ORDA to have all the necessary policy documents that incorporate USAID grant requirements. Staff understanding of the USAID grant requirements improved through different capacity building trainings provided through this capacity building initiative. Though ORDA has not yet directly accessed fund from USAID, promising practices has been indicated and ORDA has tried one proposal for USAID but unfortunately it did not get the fund.

Sustainability: The capacity building supports is founded on fertile ground in terms of addressing ORDA’s felt need, fitting to existing institutional arrangement and a long year experience of ORDA in working with USAID funded projects as sub grantee that entails a positive outlook of its sustainability. The leadership commitments in institutionalizing the capacity building efforts are encouraging as the capacity building is one area of the strategic plan of ORDA. But, staff turnover due to low salary rate may be a threat for sustainability.

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Strength, Weakness, Opportunity and Threats of the capacity Building efforts

Strength: Leadership and staff commitment to implement the capacity building supports of FHE, the dedication of all the staffs to internalize the recommendations provided by the expat and commitment to act as per the recommendations and ability to create conducive work environment and Organized staffing structure.

Weakness: Unavailability of organized and clear structure that help develop proposals satisfying donor compliance and limited knowledge and information cascading structures and practices, inability to develop innovative proposals.

Opportunities: Familiarity of ORDA to USAID policies and procedures, availability of competent staff to respond to capacity gap recommendations, acceptance of ORDA by the government and target communities’, adoptions of well-defined policies, procedures, and strategic plan and availability of supportive government policies and programs.

Threaten: High staff turnover due to lack of competitive salary and benefit package.

Lessons Learnt Stepwise transformation from sub grantee to consortium and direct partnership; the strategic

move to partnership that the management of ORDA believed is prompting visibility through working in consortium and compete to directly accessing big grants. Accordingly the enhanced capacity building support enabled ORDA to be a consortium member in DFAP II program and this creates opportunity for ORDA to be more visible in USAID funding as ORDA is the lead in one of the component of the project. ORDA’s management believed that being a consortium member would transform ORDA to directly access USAID fund within the next five years.

The capacity building strategy and approach followed (i.e. assignment of the expat and starting the capacity building process from within) is found to be a good lesson. This approach has brought significant transformation.

Immense desire of the organization for change at all level can bring fast and meaningful changes, ORDA in this regards can be typical witness. All the departments of ORDA were very much aware of the gap identified by the capacity builder i.e. FHE and acted on the recommendations with dedication and commitment of both the staffs and management of ORDA.

Conclusion FHE capacity supports to ORDA found to be relevant specially in enabling ORDA to comply with USAID grant management requirements. The supports are found to be multi-dimensional and follow right and logical process. The contribution of the multifaceted supports of FHE is found to be positive and visible in every department of ORDA and the result is progressive and very strong in most departments. The supports are especially very successful in terms of enabling 8 | P a g e

each department to have their own policies and manuals as well as guidelines that harmonize donors’ policies and requirements. Moreover, the support succeeded in enhancing the knowledge and skill of ORDA’s staffs towards donors’ working environments and procedures and on how to comply with donors’ requirement. It is also noted that, the commitment, interest and dedication of ORDA’s management, technical and support staffs as well as the commitment of FHE was a fertile ground for the implementation of the capacity building supports and the achievement of the set objectives.

Recommendations

Recommendation for FHE:

The multi faceted support of FHE to ORDA has enormously contributed to enhance ORDA’s Capacity. However, the support was mainly confined to ORDA’s Headquarter. The knowledge of the project staffs and offices at Woreda level on USAID grant management is somewhat limited indicating the knowledge in not adequately cascaded to the ground. It is recommended therefore that, while undertaking such types of capacity support, FHE should consider staffs and offices of partners at ground level and should develop a system, together with the partners, to address them with adequate budget and follow-up mechanism.

FHE capacity support had two main phases: phase one: undertaking gap assessment and

ensuring availability of working policies and manuals and procedures; and second phase: familiarizing the developed policies and procedures to staffs and start working with the new policies and procedures. The first phase of the support found to be more successful than the second one. There had not been adequate time to implement the second phase and early departure of the seconded staff was also a problem. We therefore recommend FHE to assign sufficient time for each activity while doing such types of capacity building. We also suggest midterm review or other kinds of progress assessment that can help to check whether the support is on track and made timely corrections.

The major objective of the capacity support of FHE to ORDA is to help it develop a

capacity to independently access to USAID grant. In this regard FHE has enormously supported ORDA to bolster its capacity. But, the partnership agreement limits ORDA not to directly participate in some important activities, for instance participate to independently manage commodities from the seaport to the distribution centre, which was very important capacity for ORDA to access USAID grant. We therefore, recommend FHE that while carrying out such types of support, prepare a partnership agreement that have a room which enables partners like ORDA to engage in such important activities after making a thorough assessments of capacities

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Recommendations for ORDA:

Though ORDA has been implementing many of projects and addressed marginalized communities, it is poor in documenting best practices and lessons that can be used as learning. We strongly recommend ORDA to effectively documenting lessons learned; best practices in a manner that can be easily accessed and used. Using technologies that can simplify accessing the best practice and lesson learnt is strongly recommended.

ORDA has different staff retaining mechanism including provision of education opportunity and providing hardship allowance. However, ORDA’s staff salary is still low comparing with the current market leading to high staff turnover. We therefore recommend ORDA to consider of improvement of staff salary and benefit package, otherwise, the staff turnover will continue to be grave danger to the organization;

Since ORDA has a plan to independently apply for USAID grant. One of the competency areas that USAID requires from ORDA is a good practical experience in effectively managing commodity from the seaport to beneficiaries. As ORDA does not have practical experience in this regard we recommend ORDA to acquire such experience using all available opportunities.

With the support of FHE, ORDA has established fixed asset management systems with trained staffs. However, the fixed asset registration lacks documentation of depreciation rate and calculation. We therefore, recommend ORDA to effectively document depreciation rate and calculation for the fixed asset.

Over the last thirty years ORDA has ensured progressive achievements that helped millions of marginalized people to be survived and improve their livelihood. However, ORDA has no practice of regularly organizing learning and knowledge sharing event. In order to be more visible at national and international level, ORDA need to organize such events regularly and invite donors’ communities and stakeholders to these events. This event will help ORDA to be on board with donor communities and other important stakeholders.

As per the assessment, ORDA is successful in preparing wining proposals. However, it is found out that ORDA is not strong in developing innovative proposals that have taken in to account the current climate change and the changing needs of the donors. We therefore, recommend, ORDA to work hard in this regards to develop innovative projects (that use renewable energy sources like solar and wind power) and win the attention of the donors’ communities.

Integrating Gender at organizational level is overlooked. This is clearly manifested at the leadership position of ORDA where no woman is represented. Therefore, in order to maximize the impact of gender work in programming and results at community level, ORDA should strongly work on organizational transformation from gender perspective.

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I. Introduction Abidan Development Consulting Group has been commissioned by Food for Hungry Ethiopia

(FHE) to undertake capacity review of Organization for Rehabilitation and Development in

Amhara (ORDA) to assess the progress made in response to the multi-faceted capacity building

support made by FHE. This report is the outcome of a thorough and comprehensive review and

analysis of relevant documents and reflection and thoughts of different experts of ORDA, FHE

and relevant government institutions at regional level.

For conveniences and readability, the report is divided in to ten sections. The first six sections

deal with the introduction, background, and objective of the study, description of the assessment

target groups, methodology and overall capacity building support of FHE. The major findings of

the study are presented in the seventh section of this report. Under this section the findings are

presented in six major sub-sections. Relevance, effectiveness, efficiency, impacts and

sustainability of the capacity supports are treated under section eight. SWOT analysis,

challenges, lesson learnt, conclusion and recommendations are provided in the last four sections

of this report.

II. Background

ORDA was founded in 1984 in response to the prevailing and deep-rooted poverty, which was

aggravated by drought, civil war, and economic mismanagement (SP of ORDA, 2015). Since its

establishment ORDA has executed a number of development and relief programs and projects

and reached the most marginalized areas and people of the region in partnership with

Government and International Non Government Organizations and other development actors.

FHE is one of the development partners of ORDA and they have been in a partnership journey

through implementing different development and relief programs/project in Amhara Regional

State. The presence of ORDA in the region and its government affiliation (good knowledge of

the region and government structure) are the two key factors contributed for FHE to establish

development partnership with ORDA as reported by FHE staffs.

FHE in partnership with ORDA have been supporting Productive Safety Net Program (PSNP) of

the government of Ethiopia in Amhara Region since 2005 by accessing fund from USAID.

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In 2011 FHE has signed a cooperative agreement with USAID for Development Food Assistant

Program (DFAP) with the main objective of supporting PSNP. Accordingly, FHE facilitated the

implementation of the Development Food Assistance Program (DFAP) in Amhara Region with

ORDA as sub-grantee. The program was implemented in nine Woredas located in three Zones of

the Region namely Lay-Gayint, Simada and Tach Gayint (South Gondar zone), Bugna, Lasta and

Wadla (North Wello Zone), and Dahna, Gazgibla and Sekota (Waghimra zone). Moreover, FHE

and ORDA have been providing food transfers in three additional expansion Woredas. FHE

implemented DFAP directly in three traditional and one expansion Woredas while ORDA as sub

grantee implemented the same program in six traditional and two expansion Woredas.

As a strategic partner of ORDA, FHE has been committed to empower ORDA to independently

partner with and access resources from donor communities without any assistance from external

NGOs. FHE believes that direct engagement with donors will help ORDA to improve project

efficiency, effectiveness and draw crucial lessons from the donor communities. Accordingly

FHE has supported ORDA to bolster its capacity by conducting capacity assessment, which

identifies ORDA’s organizational strengths, weaknesses and map out available opportunities for

further improvements. The assessment enabled ORDA to clearly articulate capacity gaps in the

areas of structures, policies, systems, and processes that help the organization to develop

capacity improvement plan.

Therefore, organizational capacity building support is part of the DFAP program, where FHE has

planned to enhance ORDA’s capacity with a view of enabling ORDA to directly access funding

from USAID. This assessment is conducted to examine ORDA’s current capacity brought about

by the capacity building supports offered by FHE during the implementation period of DFAP

program.

III. Description of the assessment target groups The following target groups have participated in the assessment by furnishing primary and

secondary data for the review:

ORDA staffs representing different departments: These include, Human Resource,

Financial Management, Property and Resources Management, Procurement Management,

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Business Development Management, and Grant Management departments. The Head of

each department and staffs working in the department who have organizational memory

(at least working in ORDA for the last 3 year) have participated in the Focused Group

discussion organized by the consultant.

ORDA Senior Management team: The senior Management team members of ORDA

are those who are at the top leadership position including the Executive Director, Deputy

and Program Managing Director and Deputy and Resource Managing Director. These

Officials have willingly participated in group interview and have provided valuable

information related to the capacity supports of FHE and its contribution for ORDA’s

capacity enhancement and the gaps observed during the capacity support process.

Government Stakeholders: Representatives of Regional Bureaus that work with ORDA

have also taken part in the capacity review by offering their thoughts regarding the

capacity of ORDA. These participants represent the Bureau of Finance and Development

cooperation and Bureau of Agriculture of the Region.

FHE Head Quarter Staffs: Deputy Chief of party, Program Manager and other staffs

from Commodity Management, and, Finance Department have participated in the process

of capacity review by providing necessary information that ultimately enriches the

findings of the review. .

IV. Objective and Scope of the Review

4.1. Objective of the Review The capacity review is undertaken to measure the status of current ORDA’s capacity and

compare with the set target at the initial stage of the intervention. The main objective of the

assignment is thus to evaluate the progresses made by ORDA as a result of FHE’s multifaceted

supports in the areas of program, finance, human resource and commodity managements, and

monitoring and evaluation. More specifically, the study aimed:

1. To review the progress made in the areas program planning and implementation capacity

of ORDA

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2. To assess the progresses of ORDA related to commodity and warehouse management in

terms of institutional capacity, logistics, and staff

3. To assess the financial management capacity of ORDA in utilizing USAID grants in its

own.’

4. To investigate improvements made in Monitoring and evaluation of ORDA

5. To review improvements registered on the Human Resource Management (HRM) aspect

of ORDA;

6. To evaluate the capacity level of ORDA in directly accessing USAID grant

7. To review the contributions of FHE capacity building endeavors in bolstering ORDA’s

capacity.

8. To evaluate the capacity building strategy of FHE in terms of relevance, effectiveness,

efficiency, impact and sustainability, and

9. To recommend how ORDA will further strengthen its capacity in the areas of program

design, implementation, monitoring and evaluation, financial management, commodity

management, human resources and accessing USAID grants;

V. Methodology The study adopted a mixed method (both qualitative and quantitative) so as to collect and

analyse data and produce the report. Comparison of the results of this capacity review is made

against the findings of capacity assessment conducted in 2014 to reveal the progress made by

ORDA in building its capacity.

In general, three steps were followed to collect and analyze the quantitative and qualitative

information. These include: desk review (collection of secondary data from documents),

qualitative data collection techniques (i.e. focused group discussion, key informant and direct

observation) and quantitative data collection (i.e. staff survey). Next a brief s presentation of the

techniques employed in the study is in order.

5.1. Desk Review In this very step, the consultant exhaustively reviewed both published and unpublished

documents of FHE, ORDA and government stakeholders in order to generate the required

information. Some of the major sources of secondary data which reviewed before, during and

after the primary data collection include the 2012 and 2014 ORDA capacity assessment report, 14 | P a g e

USAID cost and audit principle documents, ORDA Human Resource Manual, ORDA Financial

Resource Management Manual, ORDA Monitoring and evaluation manuals etc. The data

obtained from secondary sources helped the consultant learn more about the details of the project

and contexts of proposed indicators. These information have also been indispensible inputs in the

design of primary data collection instruments, such as checklists, structured questionnaire and

different data collection formats. Furthermore, the findings of the desk review helped to

substantiate the primary data and produce the report

Qualitative Survey

In the second step, participatory approaches were employed to collect qualitative information

using the most common tools and techniques, including focus group discussions, key informant

interviews, observations/ on the spot checking,

1. Focus Group Discussions: were mainly applied to collect information from ORDA and

FHE’s Staffs. A total of six FGD were undertaken with representatives of Human

Resource Management, Financial and Grant Management, Administrative and logistics

management, procurement management, Program Designing and Action Research

Management and Senior Management staffs of ORDA. One FGD with FHE staff was also

conducted. A total of 44 (8 Female) discussants took part in the participatory FGD.

The FGD was very participatory and most of the discussants were given the chance to

reflect on the capacity support processes, outcomes of the support as well as drawbacks.

For the purpose of guiding the discussion, the consultant has employed pre-designed

checklists prepared for this purpose (the number and position of FGD discussants is

attached in Annex of this report).

2. Key Informant Interview was made with government stakeholders who are working

with ORDA including Amhara Region Agriculture Bureau, Food Security Office and

Finance and Economic Cooperation Bureau. The interview helped the consultant to

analyze and see the trust that government stakeholders have on the capacity of ORDA in

discharging its responsibilities and managing donors’ fund.

3. Observation and on Spot Checking was also a technique utilized by the consultant to

check the availability of manuals, procedures, policies, how they are accessible to the

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staffs, how they are documented, and how the cheques and cash at hand are being

handled and whether caisson techniques are employed in the warehouse management.

5.2. Quantitative/questionnaire based staff survey

In the third stage, purposive sampling methods were employed to include all departments who

received the supports in the staff survey. Six respondents from each target department were

selected purposively; since the selected staffs have sufficient knowledge of FHE’s support and

its role to ORDA’s capacity development, to fill self- administer structured questionnaire. In

general 27 (5 female) respondents have participated in staff survey. Prior to filling the

questionnaire, a brief orientation as to how to fill the questionnaire, on the purpose of the staff

survey and how they should administer it was given.

The consultant then fed the responses into computer, refined and analysed (weighed) the

response using Excel and utilized the result to substantiate the findings of the qualitative study

and desk review. More specifically, the quantitative result is used to compare with the findings

of the capacity assessment undertaken in the year 2014.

5.3. Limitations of the Review In order to adequately address the required level of quality of the assessment and achieve the

intended objectives, various core competency areas of the organization were touched up on.

Moreover different approaches and data collection tools were applied. However, the consultants

were unable to secure the views of ORDA field level staffs due to inability to travel there as

there were great security concerns in the project area. ORDA could not also be able to mobilize

project staffs to head office at Bahir Dar to fill this gap. However, there were staffs in the FGD

who had been working in the field office and recently transferred to head office and efforts were

made during FGD to fill this gaps by raising questions that address issues at field offices level.

The consultants believed that FGD participates who had been working at project office level

have still the real feelings of their former positions and have the required information to fill this

gaps.

The target groups of ORDA (the communities) are the right holders who deserve to receive

quality program delivery. As the end users of the services provided by ORDA, their views on

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ORDA’s capacity to timely and quality delivery of services is very crucial. However, this

assessment has not been able to document their views in the due process of the study.

VI. FHE’s Overall Capacity Building Interventions Despite more than 15 years of experiences in implementing different USAID funded projects as

sub grantee recipients; ORDA has been unable to directly access funds from USAID. Although

ORDA has elapsed many years partnering with international Non Governmental Organizations,

these partners have mainly focused capacity building efforts on program implementation rather

than building support systems.

In order to buttress up ORDA with strong and effective support system, FHE in consultation with

USAID, revised DFAP budget and covered the cost of expatriate staff seconded to ORDA head

office, with experience and expertise in systems management and deep acquaintance with

USAID rules and regulations. The expatriate closely worked with ORDA senior management to

bolster ORDA’s support systems. The expatriate was purported mainly to focus on

strengthening the support systems of ORDA to work on compliance issues and enable ORDA to

directly access to USAID funding.

Furthermore, the expatriate focused in assisting ORDA’s team in proposal writing, relationship

building with USAID, and other activities directly related to winning a sole award with USAID.

As part of the capacity building endeavors, a comprehensive capacity assessment of ORDA that

focused on analysis of key departments, management and leadership has been made. Based on

the findings of the capacity assessment, improvement plan was developed and assisted ORDA to

implement the improvement plan.

In general, during the current program period FHE has conducted the following major activities,

among others, to build the capacity of ORDA.

Commissioned a consultant to conduct an initial Capacity Gap Assessment (CGA)

Employed an expatriate who was seconded to ORDA and based at Bahir Dar where the

Headquarter is located. The expatriate has rich experience and expertise in systems

management and familiar with USAID rules and regulations. He was working with

ORDA senior management to strengthen ORDA’s support systems;

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Facilitated trainings in Ethiopia and abroad on USAID rules and regulations, leadership,

project management, financial management, proposal writing, project closeout, project

cycle management, climate change, Environmental and Social Monitoring Framework

(ESMF), improved agricultural practices, health and nutrition, commodity and warehouse

management, etc.;

Built the capacity of the sub-grantee in managing food resources from the source through

arranging exposure visit to Djibouti port and organize various trainings;

Supported the execution of organizational level climate survey to enable ORDA to

identify its technical and managerial gaps as well as strengths and set its future strategic

direction based on the findings;

Facilitated a forum for ORDA leadership to be introduced with USAID Ethiopian

mission office key staffs and officials;

Arrange different exposure visits to head office and project staff within the country.

VII. Assessment Findings Narration

7.1 Human Resource Management Personnel policy: ORDA has recently (year 2015) revised Human Resource Management

Policy, which ensures fair and transparent recruitment system and procedures. According to the

explanation of the staffs of HR department, all staffs in the department have well internalized the

new manual and the revised HR policy. ORDA has instituted a system revising its HR policy

manual every two year and this enabled it to regularly update its policy documents taking into

account the dynamism of working environment conditions and donor requirements. The

quantitative result (3.6/5) also indicated that donor specific (e.g. USAID) human resource

regulations are well incorporated in to ORDA’s HR policy.

Recruitments: FHE support in enabling ORDA to have written recruitment guidelines is found

to be successful. Now, in ORDA, written recruitment guideline where recruitment procedures are

clearly articulated is properly in place. Competency based recruitment process which includes

experience and academic qualification has been used by advertising on public media to allow

free and faire competition of candidates. As per the discussion with HR section a phone call

reminder for each short listed applicant is made to further ensure the transparency of

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recruitments. The quantitative result (5/5) implied that the recruitment is undertaken as per the

set policies and rules. Moreover, the written guideline of human resource on recruitment is well

understood by all the staffs. Radical improvement is made by giving a written Job Description

(JD) to each staff of ORDA confirmed by the quantitative result, which is (5/5). This was one

area of capacity gaps observed during the baseline with the quantitative result of (2/5). This is a

further indication that ORDA has properly implemented the capacity building improvement plan

during the last five years.

Volunteers and internship management: According to the discussion held with ORDA HR

manager, the organization has been hosting around 300 internships annually that last three to

four months from different Universities and Vocational Skill Training Colleges. In order to

effectively manage the internship and get the best out of it ORDA has drafted internship

management guideline, which is in the process for approval by the management. This is indeed,

one area of improvement from the baseline as a result of the capacity building support provided

by FHE. The performance of ORDA in this area used to be very poor as indicated by the baseline

result which was 2/5 but now it is improved to (3/5) which is above average.

Staff Salary and benefits: Although recent improvements have been made, both the management

and FGD participants indicated that the salary and benefit package of ORDA is remains low

compared to other similar organizations. The key informant interview with government

stakeholders also mentioned that the meager salary and benefit package of ORDA is cause for

high staff turnover. Thus, the management should consider revision of the salary and benefit

package in line with the financial capacity of ORDA. The comment of FHE staffs is also

consistent with the government stakeholders and they stated that ORDA cannot sustain keeping

its current strengthen of delivering the services unless it revise staff salary and benefit package.

Moreover, FHE’s staffs complained that the quality of ORDA’s services has been compromised

due to high staff turnover because of to low benefit package.

Staffing Level: It is found out that ORDA has well documented the positions needed and staffing

status. The Organization also regularly keeps data on the vacancy available and the extent of

staff turnover. It requires from 15 to 20 days filling in the open vacant place. Though the low

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salary scale is still a threat for high staff turnover, ORDA has tried to put in place a mechanism

to retain staffs and this include provision of educational opportunities, hardship allowance for

those working in remote areas.

Performance Appraisal: ORDA has been using Balanced Score Card (BSC) to evaluate

employee’s performance of the assigned duties, achievement of goals and fulfillment of

responsibilities every six months. The performance appraisal process is participatory in that it is

held in joint discussion between the staff to be reviewed and the reviewer. This is one of the

areas that ORDA has shown improvement during the capacity building support period. On spot

review of sample employee personal file disclosed that performance appraisal has been

conducted for all employees every six months. FGD participants also affirmed that the

understanding of staffs on Balanced Score Card (BSC) plan development and evaluation is

enhanced through different capacity building trainings. However, the FGD participants voiced

that the scoring system is rendered a mere formality, as it is not strictly applied to really evaluate

the performance of the staffs. As reflected by the FGD discussants, in general HR department is

not using BSC to measure staff performance but, the quantitative result indicated that slight

improvement has been made in performance improvement plan (3.4/5) which was (3.00 /5) in the

baseline.

ORDA has developed employee rewarding guideline to motivate best performing employees

through recognition, incentives and opportunities for career development. The quantitative

survey result which is given (3.6/5) also complements the qualitative results.

Both the primary and secondary data review indicated that useful supports provided by the FHE

related to human resource development enhances ORDA’s capacity to comply with donor

specific (USAID) human resource regulations. The quantitative result (3.8/5) also confirms this

result. Hence, staff familiarity with the USAID funding and partnership compliance is enhanced

and the quantitative result which is (4/5) confirms that the human resource management team has

the required knowledge and familiarity with USAID grant management requirement.

The overall indication of the focused group discussion and quantitative results of the assessment

with human resource management implied that the section has clearly worked on the capacity

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gap improvement plan and as a result positive changes have been made on the major gaps

identified in 2012 and 2014.

In general, pursuant to the discussion with the HR section and review of documents, during the

last five years the Human Resources Management of ORDA has shown major improvement in

the areas of:

Organizational structure which, is compatible with ORDA’s current development and

capacity has been developed and job descriptions are prepared for all positions.

Important policy documents that harmonize USAID requirements such as anti-corruption

policy, child protection policy etc. are developed and in the process internalization by all

the staffs at all level;

Employee induction manual developed;

Staff familiarity with the USAID funding and partnership compliance enhanced;

Most of the essential codes of conduct that were included in the HR manual to address

employee’s behavioral and professional conduct are separately developed as policy

documents. This included anti-harassments work place policy, anti-bullying procedures;

conflict of interest in resources and procurement; Whistleblowing policy, child protection

policy etc. These inter alia are some of the policy documents that USAID requires from

Organizations that apply for funding.

Guideline for internship management drafted and in the process to be approved

Staff exit interview analysis made regularly and present to the management for decisions.

The analysis of the exit interviews indicated that less salary is the primary factor for

employees’ resignation. Based on this analysis and recommendation of capacity

assessment reports at different time, ORDA management has made salary and benefit

package assessment and revised some salary and benefit package for the positions that

high staff turnover was experienced. However, the FGD participant and the senior

management of ORDA indicated that the salary and benefit package of ORDA is still not

competitive compared to organizations in similar position and current market.

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Based on the overall discussion on Human Resource Management competency areas, the average

rating continuum given by FGD participants for the overall capacity of HR management is 3.8/4

which is close to the higher continuum that is 4 indicating that ORDA has strong and effective

human resource management in tune with donor requirements.

7.2. Financial and Grant Management

Financial Policy, Systems and Procedures: ORDA has adopted a financial resource policy

manual that ensures ORDA’s accountability and transparency in resource management to donors,

the communities it serves, the government and its internal governance. The manual is a clear

guide and procedure that ensures key financial management procedures including segregation of

duties, authorization limits among key management of the organization, payment administration,

budget control, financial transactions recording, financial documentation, etc. Since the financial

policy of ORDA is stricter than any of ORDA’s Donor corresponding policy, it is safe to say that

the policy accommodates the donors’ policies and regulations including USAID policies and

procedures.

The Focused Group discussion with the Finance Management Team indicated that employees in

the finance section have good grasp of the financial manual of ORDA and the quantitative result

(5/5) confirms the qualitative statement. The baseline quantitative result was (2/5) and this shows

major improvements in the area of staff knowledge and skills on complying donor specific terms

and condition of agreements and grant management requirements.

Furthermore, the participatory discussion with the finance team pointed out that the same has

good knowledge of the USAID financial regulation requirements i.e. definitions of reasonable,

allocable and allowable/ unallowable expenses, VAT tracking and reimbursement procedures

etc. This recent progress of the finance section in complying with the USAID VAT requirement

is practically proven. The FGD participants in finance team disclosed that ORDA has tracked

VAT and got reimbursed around 900 thousand birr from VAT. One of the recommendations that

the Capacity advisor has provided to finance department of ORDA was related to the gap in

VAT clearance. It is in response to this recommendation that the department has shown a lot of

22 | P a g e

progress. This is one area of indication that ORDA has internalized the USAID financial

management requirements as the VAT clearing issues had been a challenge for a long time.

The quantitative result substantiates the findings of the qualitative statement that the finance

department is familiar with USAID financial/grants management procedure with the average

point of (4.5/5) and the baseline result was (2.8/5). Trainings given at different times for finance

staffs and management have enabled ORDA to internalize the USAID financial regulations and

comply with the requirements. However, discussion with the finance team disclosed that despite

many efforts to aware projects staffs on USAID financial procedures and requirements during

project area visit, the finance staffs in project offices still have little understanding and

sporadically apply the financial procedures of USAID in particular and donor agencies in

general. Though training has been provided by FHE on USAID financial reporting compliance

system, ORDA has not worked effectively in cascading the knowledge and skill to the project

level. There is no formal knowledge cascading procedures, but the department has been using

other option like orienting the finance staffs of the project when they come to ORDA HQ for

delivery of financial report. Comparison of quantitative result against the baseline indicated a

slight change or improvements, which were only (2.0/5) and grow to an average result of (2.5/5).

One of the responsibilities of Senior Management of ORDA is to regularly meet with relevant

program and finance staff to review budget status (oversee both the approved and expended

budget). The FGD discussants have confirmed that the senior management regularly reviews the

budget status. The quantitative result supports this with the average point of (4.5/5) this is

significant improvement from the baseline of (3.2/5).

In order to sustain staffs understanding on ORDA’s financial policy, systems and procedures and

donor specific requirements, it is pointed out that the department regularly conduct review

meeting to assess the progress and compliance of financial rules and regulations. The section

also provides orientation for new staffs on the financial policy, systems and procedures and

USAID financial procedures regularly. This is one area of betterment compared to the baseline

capacity gap which ensures that ORDA has implemented systems for the transfer skills from

trained staffs, yet the gaps in transferring skills at project office level remains unchanged.

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Financial Documentations: ORDA has a well-established financial documentation management

system where responsibilities are assigned for specific staffs with restricted access. The

documentation is organized in a way that can easily be used and trace progress (revenues and

investment by sector). This is further supported by the quantitative result, which is (4.83/5).

The financial document is collected every quarter from program office and centrally controlled at

Head Office.

Internal control and Audits: ORDA has internal audit and inspection department responsible for

auditing the proper utilization of resources of the organization. There is an audit policy and

system instituted to ensure financial, commodity resources and fixed assets are properly utilized

and managed/maintained. The written policies set out internal controlling system and procedures

for internal audit that clearly stipulates the cash handling and carrying systems, monitoring and

controlling of financial income and investment systems. The quantitative result strongly supports

the qualitative statement with the average result of (5/5) and the baseline result was (2/5). The

department regularly conduct cash utilization audit both at head office and program office level

and submit report for the management for informed decision. The department also undertakes

surprising visits mainly to see how resources more specifically financial resources are being

managed, and undertake counting.

Cash audit is traditionally used by businesses to determine if established administrative and

financial rules and regulations are being followed correctly. However organizations have began

using “quality audits” to measure how well internal and external demands were being met. This

type of audit establish whether internal arrangements are appropriate and attuned to each other,

whether the arrangements and their related rules are being followed, and how to improve and

innovate in this area.

Quality audits evaluate the organization’s written policies, documents and handbooks and

determine if the organization is actually applying these – and if so how well and with what

results. They reveal not only whether the job is being done in the right way, but opportunities to

improve and innovate. For this reason the audit collects and analyzes the organization’s capacity

to comply with funding requirements and quality delivery and hence the audit report contains

recommendations related to potential improvement areas and how to implement them. Relevant

and responsible actors could then use the report to produce an action plan. 24 | P a g e

In connection to quality audit, the role of the Audit and inspection section of ORDA is

transforming from purely cash audit to performance audit in response to the recommendations of

the capacity advisor, to ensure that the allocated budget is properly utilized for the intended

objectives and reached the right beneficiaries. Accordingly, the section reviewed its performance

and developed proposal to expand its service to performance audit. However, the Audit and

Inspection section of ORDA has missed opportunity to internally audit ORDA’s compliance with

the USAID grant management requirements in particular and donor agencies in general. The

FGD result also indicated that the audit and inspection section has not yet planned to audit

ORDA’s compliance to donor’s requirements and the section itself is not well aware of the

USAID grant management compliance issues.

ORDA has been audited by external auditors for all USAID projects that it has been

implementing as a sub grantee. The audit findings indicated that ORDA has complied with the

USAID grand management requirements.

Budget Planning: A separate section responsible for budget planning under the finance section

is established. The section carries out participatory budget planning where both the finance and

program staffs participate. Radical improvements achieved in collaboration between program

and finance staffs in budget planning and oversee of budget utilizations. The baseline

quantitative result (3.6/5) improved to (4.67/5) indicating that the program and finance staffs

working together to ensure policies and procedures are followed and expenditures are coded and

reported accurately, setting and controlling the project budget to ensure all costs are included and

money are spent as per the plan. This is one area of competency to ensure that proper budget

control and reduce discrepancy between budget planning and utilization.

Donor based, project based and organizational based budget planning system are in place and

Organizational based budget planning is undertaken on annual basis. A budget holder in charge

of managing each budget is instituted. The budget holder (program staff) received budget

transfer request from program officer and review the request against the budget plan and submit

to the finance section to get the budget released to program officers.

25 | P a g e

The finance section along with the internal audit and budget holder control the budget utilization

through disbursement process. Financial documents from the field office are reviewed by the

internal audit and budget holder before a record in the finance section is made. In this way the

system ensures that budgets are controlled by three sections to ensure its effectiveness.

Furthermore, the quantitative result confirmed that the involvement of the senior managers

administering and monitor the budgets for their respective departments or projects changed

positively from a score of (3/5) to (4.67).

A regular meeting with senior management and relevant program staff is held to review budget

status; oversee both the approved, expenditure, revenue. Budget variance between the approved

and expended is fully explained pursuant to the required standards by the program department.

According to reflection of the FGD discussant, for ORDA up to 10% budget variance is

tolerable. The project officer uses the finance report to cross-check activities to track timely

correction on the budget utilization. As per the quantitative result, there is also improvement in

the involvement of the Executive Director of ORDA in ensuring that the program activities are in

line with the budget and deliverables, which increase from (2.6/5) to (4.5/5).

Financial Reporting: Timely and quality delivery of financial report which, ensures relevance,

accuracy and consistency are some of the competency areas of organizations. With the aid of

different capacity building plan and intervention, ORDA has improved its capacity complying

with the reporting standards of the donors. The quantitative baseline data (3.2/5) showed growth

to (4.5/5) and indicated that the finance staffs prepare quality reports using the standard

procedures of donors and submit within the timeframe. The discussion with ORDA finance team

also pointed out that ORDA has improved its capacity of timely delivering quality report and

donor complains on financial reports are reduced. Delay in financial due date was one major

capacity problem of ORDA and the result indicates that ORDA has made strong efforts to

improve the situation. Since quality reporting and meeting the deadline or timely submission is

the requirements of most funding partners, improvement in this area will enable ORDA to

comply with the funding requirements of donor organizations. Despite the figures indicated that

ORDA has improved its capacity in developing standard financial report, the field office finance

staffs are well equipped to produce financial reports using the USAID reporting formats at

project level. The system requires project finance staffs only to deliver financial invoices and

ledger to Head Office to be recorded in the finance software. In this regard, the department has 26 | P a g e

not shown any improvement since the baseline report even though the improvement plan

developed recommends that ORDA should take action aimed at scaling up the capacity of field

office staffs to develop financial reports.

As per the comment of FHE Operations Director, there is significant improvement in preparation

of quality financial report and its timely delivery. However, further improvement needs to be

made both on the quality and timely delivery of reports. High staff turnover, especially those

who have got training, identified to be the critical challenge in delivering the quality and timely

financial report. The financial report is done using Peachtree and submitted to HQ level for

compilation as the financial report consolidates at HQ level. The financial report submitted is to

the HQ both electronically and in hard copy, yet there is some delays in submitting the financial

report in hard copies and this caused a problem for FHE staff to crosscheck the electronic copy

of the financial report with that of Hard Copy.

Regarding accounting software that support the financial systems, ORDA has been using

Peachtree and in order to adequately support the system ORDA management has planned to

replace the existing accounting software with the latest recommended accounting software that

accommodate the systems. Accordingly this assessment team was informed by ORDA’s

management that it has requested FHE cover the cost for the purchase of upgraded accounting

software. However, the request was denied albeit ORDA management thought that the requested

amount was small. The discussion with FHE Operation Management indicated that though FHE

was positive to support ORDA with latest financial accounting software since ORDA has several

donors and the accounting software works for all donors, FHE insists that other ORDA’s donor

should share the costs.

Improvement is made on the feedback mechanisms of financial reporting and these mechanisms

are properly utilized and quantitative result given (4.17/5) complements the qualitative

statements. Major changes have been scored against the baseline, which was (2.7/5) indicated it

was less often project officers use the finance report to crosscheck with activities and to take

timely corrections on the implementation or budget utilization rate.

27 | P a g e

Financial sustainability and cost sharing: ORDA has diversified funding basis and the funding

base expand over the past five years and new funding partners are included in the funding list of

ORDA like Catholic Relief Services, The Development Fund Norway etc. The quantitative result

(4.67/5) strongly supports the qualitative statement. In order to enhance the financial resource

capacity of ORDA, resource mobilization strategies are developed and communicated with

staffs. Despite the existence of opportunities which enables ORDA to generate its own income

through selling of different services like garage with the exception of recently made efforts to get

license for income generating activities from the Charities and Societies Agency has not tapped

this potential areas. The quantitative result in this regard is (2.17/5) which is below average also

indicates that ORDA has not strongly worked on this area.

As one of the USAID requirements, organizations are encouraged to provide details on cost

sharing or matching contributions to meeting the objectives of proposed program activities.

ORDA was not made responsible in showing cost shared to the program in the DFAP where the

cost sharing part is covered by FHE. However, the participatory discussion with ORDA team

discovered that ORDA has been mobilizing the community and local government to contribute

for the development projects has been implementing. Thus, in the development intervention of

ORDA, the community has been contributing labor, local material, etc. while the government has

been contributing or matching development fund up to 25% of the budget for water and

irrigation related programs. ORDA has also been using its resources (both human and physical),

for the implementation of different project which is not actually allocated for that particular

projects which can be considered as ORDA’s cost sharing. However, this assessment team

discovered that ORDA has no system that shows how cost – sharing procedure is documented.

That is to say there is no system in place that guides how cost share is tracked, monitored and

reported to donors. The cost sharing is not also recorded in the accounting systems and no

system is set out to ensure compliance with cost share. Neither internal nor external audit were

done with regard to cost share especially on community contributions. There is also no staff

training on cost-sharing procedures.

Grant Management: The new organizational restructuring of ORDA put the grant management

unit under the finance section which used to be under the control of program designing and

business development unit. Following this, the finance department has recently been named

Finance and Grant Management Department. The grant management unit is staffed with two 28 | P a g e

experts for the overall responsibilities of ORDA’s compliance with donor terms and conditions

of agreement. For the last 15 years, ORDA has been managing different USAID funded projects

as a sub grantee with various international partner organizations. The exposure of working on

USAID funded projects and programs as sub-grantee helped ORDA’s staffs at different level to

be familiar with the USAID grant management and procedures as confirmed by ORDA’s staff

and senior management. However; despite long years of experience and exposure with the grant

management requirements of USAID, still gaps being observed in the grant management

responsibility of ORDA. The role and responsibilities of the grant management section sis

limited to facilitating project agreements and reminding project staffs as the project agreement is

approaching phase out stage to timely complete project activities.

As one area of their responsibilities the grant management officers needs to internalize the

USAID grants management guideline but it is confirmed that they have hardly internalized it. It

is also observed that the grant officers have limited understanding of the cost principles and the

USAID grant management procedures. They have no copies of Cost principles (A-122) with the

revised circular CFR 230 audit principles (A-133), etc.

The Focused Group Discussion with the Internal Audit and Grant management section indicated

that there is no practice that both sections coordinated to assess or audit ORDA’s compliance to

USAID and other funding agencies grant management requirements.

The role and responsibilities among the two grant management officer is not also clear and both

staff assumed the same position that is entitled “Grant Management Officer”. This is one of the

areas that no improvements made since last capacity improvement plan. Therefore, ORDA needs

to further strengthening its grant management section and revise the role and responsibilities of

the section to ensure that the section effectively work on ensuring donor’s grant management

compliances are adequately addressed.

The qualitative and quantitative data pointed out that ORDA has made remarkable improvements

in most competency areas of financial management which enabled it to comply with donor

compliances of grant management. A range of capacity building support provided by FHE and

other funding partners to enhance ORDA’s financial management capacity to comply with 29 | P a g e

contract procedure of USAID and FGD discussants indicated that the training is indispensible to

carry out their work and this is further complemented by the quantitative results (4.33/5).

As a result of different capacity building supports, the participatory discussion with the finance

team ascertained that ORDA has in place a full-flagged system that will help it to comply with

USAID grant and access USAID grant in the coming years. The quantitative result (4.5/5) is also

complement the qualitative statement in this regard.

Observation and on the spot checking during the capacity assessment further discovered that

ORDA has made efforts in filling the capacity gap identified at different times. All the required

policy documents are prepared and internalized by staffs. Employees of finance department’s

understanding on the financial systems of the organization and donor specific requirements have

shown improvements. The overall average quantitative score of financial management

competency areas was (3.1/5) but now increased to (4.65/5) also confirms improvement in

financial system and employees’ understanding. Furthermore, the qualitative rating continuum

given by finance management team focused group participants for the overall financial

management competency areas of ORDA is (3.6/4) which indicates that all the required

financial policies, systems and procedures are in place and internalized by employees, regularly

deliver accurate and complete financial reports to stakeholder (donors, senior management,

board members), appropriate financial documentation systems are consistently compiled with its

statutory and donor audit requirements in a timely manner.

7.3. Property and Resources Management

Operational policy and systems: Written operational procedures are set out for property and

resource management including logistic, fixed assets and commodity. The quantitative result

(4.4/5) strongly supports the reflection of FGD discussants that there are different written

operational procedures and they are being used for effective commodity and logistics

management. These policies/procedures address donor’s specific rules and regulations (e.g.

USAID) and the quantitative result also supports this (3.6/5). The participatory discussion with

the property and resource management team indicated that operational policies and procedures

are presented in a way that is easy for non- financial staff to understand and comply with. The

section holds an orientation session during the recruitment of new staffs. The quantitative result

(4.2/5) also supports the qualitative statement. 30 | P a g e

The organizational operational policy and systems are well understood by staffs.Moreover, the

staffs familiar with USAID funding requirements of vehicle utilization and maintenance;

marketing and branding, prior approvals for international travel, compliance with Fly America

Act etc. The quantitative result (4.4/5) is consistent with the qualitative statement.

Commodity Management: The assessment team could not be able to physically visit the

commodity store of ORDA but the participatory discussion with property and resource

management team disclosed that ORDA has undertaken commodity management from

Distribution Center to beneficiaries. The management of commodity from port (Djibouti seaport)

to warehouse (distribution center) is, however, managed by the international partner

organization. ORDA has its own commodity management manual developed by hired consultant

and this manual fully incorporates the USAID commodity management requirements.

The country commodity tracking system is already in place. As reported by the discussants 39

Woreda have instituted commodity management system. ORDA has a total of 200 distribution

centers and they have strong capacity in commodity management.

ORDA staffs have got TOT training on commodity management and the trained staffs are

responsible to providing training for new staffs’ and refreshment training for existing ones. As

indicated by the focused group discussion participants, the training provided at different time by

FHE on commodity management helped ORDA improve its store and commodity management.

It is confirmed that maintenance for some warehouse made and adequately staffed to ensure

segregation of duties and check and balance systems. It is also shown that the commodity

distribution was made by the kebele administration but as per the comment of ORDA recruited

commodity distribution officer.

As per the reflection of ORDA’s staffs and also confirmed by FHE staffs, ORDA is strong in

managing the commodity at local level (i.e. from the distribution center to the beneficiaries) due

to the continuous supports provided by FHE and ORDA’s long term experience in the area. But

ORDA do not yet participated in managing commodities from the port to the distribution center.

An experience sharing program was organized to acquaint ORDA with the experience of

international bid systems. Accordingly staffs visited Djibouti seaport to learn the system of

commodity management from seaport to the main warehouses. However despite the importance

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of the experience sharing visit ORDA has not been given opportunities during the project period

to manage the community directly from the seaport to the warehouse as this is a missed

opportunity in the project agreement signed between ORDA and FHE. The discussants clearly

pointed that this is indeed a missed opportunity for ORDA. FHE staffs have also discussed

these issues which are referred by the ORDA’s staff as missed opportunities. Pursuant to this

FHE staffs argued that, the program had been managed and implemented as per the agreement

made between FHE and ORDA.The agreement didn’t oblige FHE to enable ORDA to

independently handle commodity management from the seaport to the distribution centers.

However, though it was not in the agreement, FHE has organized two experience sharing visits

for its commodity management staffs to Djibouti to draw lessons as to how to manage

commodity from the seaport to the distribution center. In addition, FHE has facilitated

experience sharing for ORDA with REST to lean the factors that enabled REST to directly

access fund from USAID, how they are handling DFAP including managing commodities from

the seaport to distribution center, though the outcome of the experience sharing was not came up

with the expected areas of experience.

Considering the bulk of the commodities and to fully comply with USAID and other donor

requirements, the management of ORDA has decided to re-structure the commodity management

separately from the property and resource management departments. The re-structure is already

approved by the board and ORDA is empowering the department to fully and properly function.

A new system for commodity management that is Country Commodity Tracking System (CCTS)

has also been introduced and is being functional. This further enhances ORDA’s capacity to

comply with donor requirements.

The quantitative results in all competency area of commodity management indicated

improvements. The major areas which have shown improvements in light of the USAID

requirements are the commodity staffs that know and properly use the warehouse inspection and

commodity accountability checklists. This statement is supported by the quantitative result (5/5)

which was (3.6/5) during the baseline. Furthermore the quantitative result (4.7/5) which was

(2.66/5) indicated that the warehouse system has proper filing and documentation to trace/track

records and inform the management for decision making. Records that include (monthly

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commodity receipt, monthly dispatching, other warehouse records, monthly distribution records,

etc) are maintained.

Fixed asset management: Written manual for property and transport management is under

revision and according the explanation of the Department Head the revision may take SIX

months to be finalized and approved by the management. It is highlighted that the revision of the

manual is an opportunity to incorporate donor specific requirements.

The Fixed Asset Policy of the organization adequately met the need of the organization

including fixed asset registration, inventory marking, depreciation rates, transfer/borrowing of

equipments etc. The quantitative result (4/5) also supports the qualitative statement in this

regard. The quantitative result (4.2/5) showed that ORDA is using fixed asset registrar and this

procedures is helping ORDA to effectively control assets. As per the explanation put forward by

FGD discussants, ORDA has managed to organize inventory committee and asset inventory is

being done on annual basis and the process is being supervised at deputy director level implying

the strong emphasis that ORDA has given for asset management and control. However, there

exist practical lacunae related to documentation of depreciation rate and calculation.

Staff has been oriented on the revised USAID requirement and in order to comply with different

donor requirements ORDA applies the principle of more restricted procedures and accordingly

for fixed asset ORDA applies items that worth more than 1000 birr are registered and treated as

fixed assets where as the USAID requirements is above $ 5000 highlighting that ORDA’s asset

management procedures fully accommodate USAID procedures. The quantitative result (3.8/5)

confirmed this as donor specific fixed asset regulation procedures incorporated into ORDA’s

fixed asset management policy.

Improvements against the baseline in this regard is that the asset disposal procedures of Charities

and Societies Agency (ChSA) and the donor are internalized by staff and hence a committee for

disposal is formed and list of items for disposal are identified and application is submitted to the

ChSA agency. The quantitative result complements the qualitative statement with the average

point of (4.2/5). Improvement is also made on the awareness of management staff on USAID

grants policy which prohibits staffs/leaders from accepting any gift that influences the policy and

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specific code of conduct to guide purchasers. The quantitative result (4.5/5) against the baseline

(1.6/5), support the improvements in this area.

The participatory discussion with property and resource management team pin pointed that the

section has filled several gaps in the last five years in response to the capacity assessment gap

improvement plan made at different time. Accordingly, areas that have improved are:

Store management was poor and a “Kazan” training was given for store management staffs and improvements made in store management.

Inventory report was not comprehensive and strict. Training for staff provided and

accordingly the system improved. Following this, inventory of phased out projects

planned and conducted at least two month before close out. This improvement is realized

since the implementation of improvement plan prepared following capacity assessment in

year 2014. The quantitative result (4.8/5) indicated that ORDA manages the close out of

projects financially, complete all required deliverables and clarify plans for any

equipment or other inventory purchased. The baseline quantitative result was (1.66/5).

As part of computerizing fixed asset management system, GPS is installed on 40 vehicles

so as to properly monitor their movements. Inventory of fixed assets is also carried out by

the computer using Excel. But, the department is planning to hire consultant to adopt

highly systematized software for effective inventory of fixed asset.

Logistic Management: Written manual for travel policy and procedures are in place. For

instance, systems are established for field travel where each department develop Terms of

Reference (TOR) indicating the purpose of travel, number of staff traveling, where to travel,

duration, estimated budget etc and submit to finance and logistic section at least two weeks

before the date of travel. Extension TOR should be prepared and submitted if there is need to

extend duration of the field work beyond the requested number of days. This ensures effective

and efficient resources utilization of the organization. Advance settlement reconciled within two

days of return back from field.

Log sheet is applied for all vehicles of the organization and fuel standardization limit is also set.

The logistic section makes analysis of the log sheet every three months and presents the findings

for management. The logistic and administration department uses the result of the analysis as

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criteria to measure the performance of drivers, this in turn enhance the efficiency of resource

utilization.

Consistent with USAID requirements prior approval is need along with travel plan within 45

days before the travel date in order to get prior approval from USAID. However; with regard to

international travel the participatory discussion with ORDA staffs confided that only few staffs

(senior management team and Property and transport manager) understood how to comply with

requirements of planning for the international travels and accept notification.

The quantitative result (4.6/5) indicated that ORDA has currently capacity to comply with

USAID logistic and commodity management and the qualitative rating continuum which is

(3.4/4) also confirms that the organization has put in place policies and procedures for property

and resource management and internalized by employees how to apply the procedures.

7.4. Procurement Management

Transparent and accountable procurement system is one areas of compentcy for strong and

effective organization. With regard to this ORDA has procurement policy that adequately

supports the needs of the organization (procurement responsibilities, procurement planning,

competition, exceptions, award, delivery and inspection, documentation, inventory, etc). The

average quantitative result (4.83/5) confirmed that procurement policy exists and internalized by

employee who applies the policy manual.

The purchase system indicates that annual purchase plan is developed based on the purchase

request from each department and approved by supervisors. The purchase process used to be

centrally managed at head office level. However, considering the delay in the implementation of

project activities which need material purchase, the management has decentralized the purchase

system and accordingly, program offices are mandated to effect purchase of up to Birr

200,000.00. In addition to this, ORDA delegate program offices to effect purchase depending on

compelling conditions. The centralized procurement process was one area of reported challenge

in different capacity assessment report of ORDA. However, the participatory discussion with the

procurement management team indicated that the decentralization procurement system has

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improved the timely delivery of the organization though it requires close follow up and technical

support for program officers.

To ensure the transparency and accountability of procurement systems, ORDA has issued a Code

of Conduct to be applied to the staff engaged in the procurement of goods and services. This

Code of Conduct is indispensible to effectively manage the procurement process. This is one

area of improvement compared to the baseline qualitative statement charging ORDA for lacking

code of conduct for procurement process that ensures accountable system of procurement.

An average result of (4.2/5) quantitative assessment supported the qualitative statement implying

that FHE has provided capacity building supports to ORDA on USAID commodity management

and the support is adequate and relevant. Furthermore, it is indicated that staffs got training on

USAID procurement compliance procedure and the training helped them to be familiar with

USAID procurement compliance procedures. The quantitative result (3.5/5) confirmed that all

the purchase manager, senior management, project staffs and purchasers have full understanding

about the prohibited items to purchase using the USAID fund. But still the quantitative result

suggests that ORDA need to exert more efforts in the procurement management in order to

enhance staff knowledge and fully comply with the USAID requirements.

A review of the procurement manual of ORDA shows that the manual takes into consideration

the procurement policy and procedures of USAID. This statement is supported by an average

quantitative result of (3.33/5). With regard to international purchase, the participatory discussion

with the procurement management team disclosed that ORDA has developed the capacity to

manage international purchases and this is further confirmed from the fact that ORDA has start

opened bank account for LC and already started the practice as it is currently on international bid

process to purchase solar house from the international market.

7.5. Program Management Donor compliance: It is confirmed that all donor agreements and the modifications made thereto

are readily available. The grant management section which used to be under the program section

was responsible to follow and document donor agreements and any modification made to donor

agreements. The program section was also well aware of the applicable USAID requirements;

these inter alia include submission of work plan, marketing and branding plan, environmental

36 | P a g e

compliance plans, semi-annual and annual reports, inventory and VAT report etc. An average

quantitative result (3.8/5) is fair enough to support the qualitative statements. However, with

regard to program staffs understanding and aligning with the USAID grant standards and cost

principles/ allowable and non allowable/ costs and properly documenting them, the quantitative

results indicated that there is slight decline from the baseline. The baseline result (3.07/5) and the

assessment result is (3/5). As per the voice of the FGD discussants of the program unit, there is

some problems to fully comply with the donor requirement due to the bulkiness of the activities

and programs and high staff turnover.

The external audit related to non- compliances with donor regulation indicated that ORDA has

fulfilled the major requirements. However, the internal audit and inspection section though

mandated to audit the non- compliance with funding partner’s issues there is so far no internal

audit related to non – compliance. Hitherto, neither the practices nor the understanding of the

importance of undertaking compliance audit exists. But recently due to the provision of training,

they seem to realize the paramount importance of compliance audit.

Technical Reporting: One of the communication mechanisms between funding partners and

implementing organization is delivery of good quality reports. USAID and many institutional

donors also require an accurate and complete program deliverables and success stories in their

reporting agreements. ORDA basically prepares two kinds of report i.e. contractual for the

government and donor based report for the donors. The assessment indicated that different

sections or departments in ORDA are responsible for the preparation of reports; these include;

community promoters at kebele level, project officers, program coordinators, managers, and

M&E officers. All these actors have been involving in the report preparation to ensure data

quality and consistency of the report. The participatory discussion with FHE management also

confirmed that ORDA has made improvements in timely delivery of reports even though the

quality of reports in terms of presenting success or case stories and documenting lessons needs

further improvements. ORDA team also confirmed that, the program department is not strong in

presenting success stories and lessons while developing progress report. The baseline

quantitative result (3.3/5) showed slight increase to (3.8/5) implied that though there is some

improvements ORDA needs to strive more in effectively documenting lessons learned, best

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practices and gaps. Moreover, the documentations must to be well organized and readily

available for learning.

It is also reported during the participatory discussion with ORDA staffs that reports are collected

from the project offices and compiled centrally at HQ level based on the donors’ format and sent

to the donors, program office and to the HQ management. The findings also disclosed that due to

the bulkiness of the activities, activity reports are not checked with financial reports.

The participatory discussion with BDARP section indicated that ORDA staffs have a clear

understanding the reporting formats and accordingly prepares and submits quarter and semi-

annual narrative and financial reports using USAID reporting format. Considering the timing of

the reporting the project offices have been submitting the report within the specified time period

and have no problems in this regards.

Community involvement: Community participation is a core concern of humanitarian and

development organization as it has been set as one commitments in Core Humanitarian (CHS)

Standards. ORDA as a humanitarian and development organization must implement clear

systems that ensure target groups are participated fully in the project cycle management

including utilization of project budgets. The target beneficiaries are the right holders of the

projects’ resources and they are entitled to hold ORDA accountable in the process of project

implementation and utilization of resources. Therefore, ORDA as duty bearers should create

opportunities to engage communities at large.

With regards to community involvement in project cycle management, the FGD discussants have

confirmed that the community participates in project cycle and annual performance meeting and

also influenced decision in few instances, if not always. The quantitative result (3.6/5) which is

slightly above the average support this qualitative statement in this regard. However, in some

instances the target beneficiaries do not influence decision, like forcing donor to change

activities as per their priority after the project/programs are designed and approved. But the

communities are consulted on beneficiary selection and establishment of committees during the

implementation of such projects. However, once the project proposal is developed and approved

ORDA implements it with the full and active participation of the community at large. But, the

target communities have no chance of knowing how much budget is allocated and oversee the

utilization of resources.

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Knowledge Management and Diffusion of Technology: ORDA has recently prepared

knowledge management guideline by hiring consultant. However the quantitative result (2.4/5)

which is below average indicated that the manual is not familiarized with the staff. Indeed the

majority of the staffs have no idea about the manual. As part of knowledge management and

transfer of skill, learning and knowledge sharing events are one area of competency but ORDA

has no practice of regularly organizing learning and knowledge sharing event and the

quantitative result is also complemented by a little less than average point of (2.4/5). The

quantitative result (2/5) has verified that capacity building training on the principles and

applications of knowledge management is not adequate. The key learning practices and

experiences are not systematically organized and scatterly documented here and there. In

general, ORDA’s knowledge management system can be judged weak and needs further

improvement with the full utilization of the newly developed knowledge management guideline.

Proposal development and resources mobilization: Capacity for quality proposal development

is one area of competency that helps to adequately solicit funds. ORDA develops proposal based

mainly on call for proposal. Searching call for proposal has been undertaken both at HQ and

liaison office (Addis Ababa) level. In addition to this mechanism, some partner’s organizations

of ORDA inform them some calls which is not officially announced.

As indicated in the participatory discussion with ORDA management, quality proposal

development, networking and linkage, quality delivery of program at ground level are among

some of the fund raising practice of the organization. Discussion with ORDA’s Business

Development Action Research (BDAR) team indicated that ORDA use participatory proposal

designing systems. Three program design officers are responsible for writing proposals in

collaboration with food security, natural resource management, and water/irrigation development

departments in line with the thematic focus of the proposal. However, ORDA asserted that it has

been using participatory program designing, there is no clearly defined structures and Terms of

References for the program designing team.

Despite the absence of clearly set structure for the proposal designing team, the success rate of

proposal for funding has shown radical improvement compared to the baseline (20%) in year

2014 to success rate of (92%) June 2016. The bi-annual report of ORDA (January to June 2016) 39 | P a g e

indicated that the organization has developed a total of 17 projects of 11 are funded, one

proposal rejected and 5 are waiting for responses. The statement of the management discussion

also indicated that ORDA has developed its proposal writing skills through different capacity

building trainings provided. It is raised by the FGD discussants that ORDA has provide training

on proposal writing skills and techniques for program staffs on average once in every year.

In this regard, the reflection of BDAR team is consistent with FHE management discussion

which pointed out that capacity building training on proposal writing has been provided for

ORDA program staff so as to enhance their capacity to design competent proposals for funding.

The quantitative result (3.0/5) slightly above average somehow complements the qualitative

statement i.e. regular capacity building supports for program staffs on proposal writing are

provided. BDAR team also confirmed that the training on proposal writing for program staff has

contributed in increasing the success rate of the proposals and quantitative result (3.6/5) also

supports the qualitative findings. Though, ORDA is working hard to improve its capacity to

prepare proposals that meet the technical and accountability requirements of donors , the practice

to internally appraise developed proposals is very limited and the proposal appraising committee

does not use the appraisal checklists of donors which are commonly found in the websites of the

donor agencies.

The quantitative score (3.8/5) showed that ORDA has made some improvement in designing

innovative proposals that contribute to the empowerment of target groups against the baseline.

The senior management of ORDA has emphasized that ORDA is not strong in developing

innovative proposal and need to work hard in this regards so as to win the attention of the

donors. The qualitative statement also depicted that “ORDA’s projects have great contribution to

empower communities and to sustain the program outcomes”. Reviewed bi annual (January to

June 2016) report of ORDA indicated that during the reporting period, job has been created for

10,568 (5930 females) youths and enabled to create Birr 13.5 million via temporary and

permanent employment opportunities which is consistent with statement that developed

programs are contributing for sustainable empowerment of the community.

With regard to designing quality proposals that sufficiently fulfill USAID interest, though the

quantitative result (3.6/5) is above the average, the discussion with BDAR team emphasized the 40 | P a g e

need to hire external consultants to develop proposals and the discussion with ORDA senior

management also confirms the same. However, FHE management argued that hiring consultants

for proposal development is costly, lengthy and hectic process and suggest that ORDA should

bolster its grasp of USAID grant proposal development procedures and requirements. They

suggest ORDA to do this by hiring experienced seconded consultant on permanent basis for

some times to give on job training on quality proposal development that fulfill USAID’s

requirement.

Culture and Gender: Reviewed organizational documents, quantitative results and qualitative

statements indicated that ORDA has clearly out in place guidelines for culturally relevant and/or

gender-based approaches and programming. Gender analysis is conducted before intervention of

any program so as to inform the program on the gender dynamics of the intervention areas.

Accordingly both the program team and the gender section conduct gender analysis regularly and

the quantitative result (3.6/5) indicated that the gender experts of ORDA together with program

staff conduct gender analysis and use the recommendation for improvement of programs.

Biannual (January to June 2016) report of ORDA stated that during the said period a total of 22

gender analyses were conducted.

ORDA design projects in a way to address both strategic and practical gender needs of women.

Regarding empowering women, from January to June 2016 a total of 2,339 women got training

on leadership. Aawareness on gender issues and women’s provisions of the PIM during Public

Works’s (PW) provided for 51,577 (26,876 females) PSNP clients. To enhance the awareness of

the whole community on gender issues, messages on gender equality were transmitted through

radio spots to 10,652 (4073 females) PSNP clients.

Despite several improvements in gender integration there remains strategic issues that need to be

addressed . One of the key issues that need consideration is that the gender section of ORDA is

only staffed with one employee. Though the gender work should be the responsibilities of all

staffs, until ORDA reaches such stage where each and every employee hold responsibility for

gender integration work, the gender section should be adequately staffed and strengthened

considering the number of interventions that ORDA has been engaged.

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Furthermore, gender integration work of ORDA is only at programming level. Whereas gender

work at organizational level to ensure that policies and procedures adequately integrate gender

issues are overlooked. This is clearly manifested at the leadership position of ORDA where there

is no woman in the leadership position. Therefore, in order to maximize the impact of gender

work at programming and results at community level, ORDA should strongly work on

organizational transformation from gender perspective.

Standards and Quality Assurance: ORDA has operational guidelines that stipulate service

delivery standards. In addition, ORDA has been using the government quality service standard

for infrastructures constructed like water schema, small scale irrigation, road and bridge. The

quantitative score (3.75/5) indicated that there is slight improvement against the baseline (2.76)

in using service quality standard for activities as means of quality assurance. Though the

qualitative score (3/5) is slightly above the average indicate that ORDA has provided regular

training on adherence to this standard. However, the participatory discussion with staff indicated

that awareness on those standards is limited among ORDA’s program staffs. Structurally the

section that is responsible for standards and quality assurance is not clearly defined. Moreover,

there is confusion whether the role of quality assurance belongs to BDARP section or M and E

section.

Supervision: ORDA has a supervision approach and plan in place and utilizing this approach and

plan while supervising the activities at field level. It is also discovered that the findings of

supervisions has been documented and shared and discussed with the management and staffs.

Monitoring and Evaluation: Performance Management Plan (PMP) -a tool designed to help

partners set up and manage the process of monitoring, analyzing, evaluating and reporting

progress toward achieving objectives is one of the competency areas that the USAID grant

management procedures demanded. ORDA has compatible vibrant designing, monitoring and

evaluation framework in place pertaining to performance management system as pointed out by

FGD discussants and also substantiated by quantitative score (3.8/5). The baseline quantitative

indicator (3.3/5) confirmed that ORDA has shown slight improvements in this area.

It is also found out that there is a documented monitoring and evaluation plan (output) and

outcome indicators, data collection tools schedule, quality review and methods for sharing and

42 | P a g e

using data. The quantitative result somewhat confirmed this findings (3.8/5). In order to enhance

the monitoring and evaluation skills of staffs and undertake quality data ORDA has been

providing training, but as per the findings of quantitative result (3.2/5), ORDA need to do more

work in this area.

It is confirmed that ORDA has been using Monitoring and evaluation findings with a view to

improving the delivery of programs and projects, and the quantitative data supports this result

(4/5). The program staffs have well internalized the designing, monitoring and evaluation

guideline and the quantitative result also shows this (3.6/5).

ORDA has also made slight improvement in designing program documents that include essential

Designing, Monitoring and Evaluation elements (baseline, targets, result chains, implementation

modalities & work plan, monitoring milestones, evaluation, accountability and learning

mechanisms which as a result changed to (3.4/5) from 3.15/5 quantitatively.

The qualitative rating continuum given by the program team of ORDA is (2.75/4) indicating that

as compared to other capacity competency area ORDA has need to work more in quality

program designing and management of program delivery.

7.6. ORDA’s leadership engagement in capacity building support

The leadership of ORDA is one of the key aspects that we have looked into while conducting

this capacity reviews. We have observed that to very crucial endeavors have been made by the

leadership of ORDA. These endeavors have contributed for the capacity improvement of ORDA.

The participation of the leadership in building the capacity of ORDA have manifested in such

ways as establishing networking and partnership with various national and international

stakeholders, developing inclusive strategic plan that guide the overall development activities of

ORDA, initiating and leading important studies that can change ORDA’s ways of delivering

services and their close follow-up and supports to the technical and supports staffs and units of

ORDA.

Networking and strategic Partnership: ORDA’s leadership perceived networking and strategic

partnership with stakeholders as a key tools to mobilize resources, extract new skills and

knowledge, deliver effective and efficient services at all level and make the outcomes of project

43 | P a g e

implementation as sustainable. In this regard, ORDA has been working in networking and

partnership with several national and international organizations. To enhance effective

partnership and networking and get the best out of it ORDA has developed Communication and

Networking Strategy document. This document defines its audience which includes Community,

Local and International partners etc.The management of ORDA firmly believes that the

communication and networking strategy helps to increase ORDA’s visibility both at local

national and international level.

So far, ORDA has established a promising strategic partnership with different international

organizations like CRS, EU, DFID, The Development Fund Norway etc to enhancing resource

mobilization and skill and knowledge development. The senior management of ORDA aired that

FHE has helped them establish linkage with USIAD for direct talk with its management team.

Consequently, USAID people have advised ORDA on how to establish direct strategic

partnership with USIAD. As per the reflection of both FHE and ORDA, the established

networking with USAID shows that direct partnership with USAID can be formed by applying

for small grants and in the process ORDA will become familiarized with the compliance

procedures and policies of USAID grant and thereby become more visible to USAID. However

the management of ORDA preferred to compete for consortium approach rather than trying with

small funding. Though a missed opportunity, ORDA can go for and entertain both approaches at

the same time i.e. application for small grant and direct application in consortium.

Though the funding trend of ORDA showed tremendous improvement, the participation of

Board of Directors in soliciting fund is reported to be very weak.

Capacity building in Strategic Planning: ORDA has a strategic plan developed for the period

covering 2016 – 2020. ORDA’s Board and Management has made the decision to develop this

fourth strategic plan in view of the globally ever changing funding priorities, increasing

competition in resource mobilization coupled with the unmet development needs of

communities. The rationale behind the revision of the strategic plan include inter alia, making

the strategic plan consistent with the framework of GTP 2, embrace post 2015 sustainable

development goals and include donors’ interest and willingness to finance the development

interventions. As per the reflections of senior management of ORDA, accessing big donors at

least one in a year is one focus of the strategic plan. The management indicated that they have

44 | P a g e

been working to achieve the set objective and accordingly ORDA has accessed funds directly

from some donors like DFID- Civil Society Fund for three consecutive years. However, the

strategic plan does not set out system to look and track opportunities of small but strategic grants

that link ORDA with big donors. This is very important for ORDA as a small grant of $100K-

200K is issued from time to time by USAID for NGOs that have not received funding from the

USIAD directly in the past.

This strategic plan envisions serving as a management tools to guide program management and

implementation, resource mobilization, ensuring community participation and empowerment,

enhancing stakeholder collaboration, efficient utilization of recourse and ultimately changing the

livelihood of the end uses/people.

Efforts of the leadership of ORDA to get direct access to Donors: The participatory discussion

with the senior management of ORDA indicated that the management envisions to directly

assessing funds from big donors like USIAD in five years. It has also indicated that ORDA is

thinking a strategic move of scaling up its status from sub-grantee to consortium and then to

capacities that enable ORDA to access Donors directly.

Persistence and continuous support of the leadership/senior management to technical and

support staffs/unit of ORDA: It was strongly confirmed by the FGD discussants of different

departments of ORDA that the continuous and persistence supports of the senior management of

to each department highly contributed for the efficiency and effectiveness of the pertinent

department in the discharge of their responsibilities. Member of the senior management

including the Executive Director regularly visit departments and ensure that work is smoothly

going as planned and if the need arise provide supports.

Contribution of ORDA’s Board of Directors to improve ORDA’s Capacity: it is voiced by all

FGD discussants of each department that the contribution of BoD in building the capacity of

ORDA is very insignificant. Contrary to expectations, BoD has so far failed to engage in lobbing

to bolster ORDA’s partnership and networking with donors and enhance resource mobilization.

The BoD is also not active in offering constructive inputs on different reports that need its

feedback.

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VIII. Relevance, Effectiveness, Efficiency, Sustainability and Impact of the capacity building efforts

8.1. Relevance of the capacity building support

The relevance of the capacity building supports to ORDA’s priorities, pertaining to system

development was assessed. ORDA has been implementing programs with different International

Funding Partners and accumulate more than 15 years of experiences in implementing different

USAID funded projects as sub grantee recipients. However, ORDA has not been able to directly

access funds from USAID. Although ORDA has numerous years of partnering with international

Non-Governmental Organizations, international partners have focused capacity building efforts

on programmatic implementation rather than building support systems.

The findings of the assessment revealed that the capacity building support provided by FHE is

focused on system development of ORDA with a view to strengthening institutional capacity.

The discussion with the staff and reviewed documents indicated the capacity building plan found

to be relevant to ORDA’s capacity need in system development and establishing strong

networking and partnership. ORDA has been working in USAID funded projects for more than

15 years as sub grantee and this long year experience with USAID project implementation has

enabled ORDA to be familiar with the USAID grant management procedures, yet compliance

with the grant management process was proven to be arduous. Despite the long year experience,

ORDA had not yet reached the capacity level of directly accessing funds from USAID.

Employees’ understanding on the basic grant management procedures was low, and the existing

policies, procedures and systems were not reviewed to incorporate donor specific requirements.

In decades of engagement with USAID, ORDA had not got opportunities to establish networking

and relationship with the USAID managements. Technical capacity such as VAT reimbursement

issues, gaps in regularly delivering accurate and complete financial report were the major

capacity gaps in complying with the USAID grant management The findings of document review

and qualitative study showed that the capacity building support provided is relevant and were

priority areas of ORDA. Moreover, it was exhaustive, participatory and passed through

comprehensive planning process. The quantitative result (4.67/5) undoubtedly confirmed that the

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capacity building support provided by FHE is highly relevant to ORDA’s priorities and needs to

fill the capacity gap in system development.

8.2. Effectiveness of the capacity building support

ORDA has implemented the capacity building initiatives in partnership with FHE Ethiopia. The

partnership is found out to be supportive and based on mutual trust. The decision made by FHE

in revising the DFAP program to incorporate staff salary that seconded to ORDA to support the

capacity building process is appreciable. The capacity building support started with a

comprehensive capacity assessment which used as baseline capacity gap. The startup capacity

assessment report is indispensible to measure the changes brought out by the capacity building

support of FHE through DFAP.

With the supports of the seconded capacity expert, various capacity building activities have been

undertaken. One of the most important outputs of these capacity supports is the capacity

assessment with various recommendations which helped ORDA to prepare different policies and

manuals that facilitate effective human resource, financial, commodity and knowledge

management. In addition to this, various capacity building trainings have been provided by FHE

in different areas including financial management, human resource management, procurement

administration, commodity management, grant management and others. This capacity building

supports provided by FHE helped ORDA to strengthen its capacity to comply with USAID grand

management.

FHE also facilitated various experience sharing visits within the country and aboard. The

commodity management department visited Djibouti two times to get experience in the area of

commodity management from the sea port to distribution center. Experience sharing was also

arranged to Uganda which helped ORDA to acquaint itself with watershed management.

However, ORDA felt that the experience sharing program organized by FHE is not sufficient and

more could have been made, especially in the area of international experience sharing.

ORDA also give credit for the on job training and advices provided by the seconded capacity

builder/staff and the recommendations provided by this expat. However, ORDA felt that the late

assignment and early departure of the capacity builder has put ORDA to the disadvantage

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position and ORDA would have got more support from this expat had FHE assigned him/her

early as reported by the senior staffs of ORDA.

Different departments of ORDA participated in the capacity assessment and implementation of

the capacity improvement plan. However, the participation of program officer in the

implementation of the capacity gap improvement plan was not noticeable as there is still gap in

complying with USAID grant management procedures at field office level.

Strong leadership commitments for the implementation the capacity building plan was displayed

at Head Office level which enabled ORDA to score improvements in all competency areas of

capacity. In general, the planned activities of the capacity building support has been

implemented during the capacity building support period indicating that the support was

effective in addressing the capacity gap needs of ORDA.

8.3. Efficiency of the capacity building support

Even though it is very difficult to ascertain the efficiency or performance of the project in terms

of fund utilization, the efficiency of the capacity building support is assessed in terms of the

experienced staff seconded to ORDA and time used to build the capacity building support.

Though deployed late, ORDA has utilized the skill and knowledge of the seconded staff

efficiently to enhance its system development and meaningful changes have been made on the

overall capacity of ORDA as a result. However, ORDA would have been benefited a lot from the

skill and knowledge of the expat had the expat used the allocated time fully.

The phase- based capacity building plan enabled ORDA and FHE to prioritize capacity building

plan and strategically intervene which contributed to bring significant change in the key

competency areas in the specified time period, and this indicate efficient utilization of time and

human resources. The enthusiasm and interest of ORDA’s management and staff to sap

knowledge and skills from FHE has helped to ensure system development and transform the

organization within the time frame of this capacity support.

8.4. Impacts of the capacity building support

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The performance of the capacity building in meeting stated objectives (enhancing ORDA’s

capacity to directly access USAID fund) was assessed. The result confirmed that the capacity

building support has achieved most of the planned objectives as witnessed by self-administered

survey participatory consultation and observation carried out by the assessment team.

Both the qualitative and quantitative data ascertained that the capacity building support enabled

ORDA to obtain all the necessary policy documents that incorporate USAID grant requirements.

Staff understanding of the USAID grant requirements improved through different capacity

building trainings offered via this capacity building initiatives. Discussion with ORDA and FHE

management evidenced that the compliance issues/problems with reporting qualities have been

reduced. Though ORDA has not yet directly accessed fund from USAID, promising practices

has been indicated and ORDA has tried one proposal for USAID but unfortunately was not

funded.

8.5. Sustainability of the capacity building support

The capacity building supports is deeply inculcated in terms of addressing ORDA’s felt need,

fitting to existing institutional arrangement coupled with a long year experience of ORDA in

working with USAID funded projects as sub grantee undoubtedly entails a positive outlook of its

sustainability. The leadership commitments in institutionalizing the capacity building efforts are

encouraging as the capacity building is one area of the strategic plan of ORDA.

IX. Strength, Weakness, Opportunity and Threats of the capacity Building efforts

The consultants have tried to identify strength, weakness, opportunities and threats of the

capacity building efforts. Here in a brief presentation of the findings are in order.

Strengthen 1. The commitment of the senior management to lead the capacity support and creating the

favorable environment for the supports to bring the required result is found to be one of

the strengths of ORDA.

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2. The existence of professional freedom, job satisfaction and good working environment

contributed to ORDA’s ability to fully exploit the expertise and skill of its staffs at every

level. One of the manifestations of this is the existence of dedicated and highly

professional staffs who have been taking the organization for ward in every aspect.

3. The dedication of all the staffs to internalize the recommendations provided by the expat

and commitment to act as per the recommendation is another noticeable strength of

ORDA.

4. ORDA has produced organizational settings, policies and procedures that incorporate

donors’ interest.

Weakness 1. Unavailability of organized and clear structure aimed at developing proposals that fulfill

donor compliance.

2. Limited knowledge and information cascading structures and practices (ORDA has

limitation in cascading information and skill to the level project office )

3. ORDA has not been benefiting from the privileges that the government has provided to

Non-governmental Organization (70/30 budget utilization). Though this definitely benefit

the target communities, ORDA need to use this opportunity to retain staff by increasing

their salary and reduce the turnover of experienced professional.

Opportunities 1. Familiarities of ORDA to USAID policies and procedures

2. Availabilities of competent staff that responds capacity gap recommendations

3. Acceptance of ORDA by the government and target communities

4. Availabilities of well defined policies, procedures, and strategic plan

5. Availability of supportive government policies and programs

Threat • Less competitive benefit and salary package that endangered staff turnover which in turn

leads to the failure of investment on professionals with serious repercussions to ORDA.

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• Internet disconnection may create difficulties in report exchange, if ORDA is going to

install the technology which predominantly depend on availability of internet network

X. Challenges The following are the challenges that ORDA has been facing by not fully responding the

recommendations suggested in the capacity assessment of the 2012 and 2014

1. The inability of ORDA to install the financial software that is believed to ease the

financial reporting from the field to the HQ and then to the donor is found to be one of

the perceived challenges. ORDA was not able to get funding to install the software .

2. The monitoring and evaluation and documentation system of ORDA is not fully

organized and comprehensive. Though some efforts being made, ORDA is not fully

computerized and not able to create monitoring and evaluation information pool. As a

result, it is difficult to get the required information from program department for learning

and the information is highly disorganized.

XI. Lessons learnt Stepwise transformative approach to partnership-from sub grantee to consortium and direct

partnership

ORDA has moved a long year journey as sub grantee of USAID fund through implementing

different projects in partnership with different International Non- Governmental Organizations

(INGO). More than 15 years engagement in implementation of USAID funded projects created

an opportunity for ORDA to be familiar with USAID grant management procedures and

requirements. However, no comprehensive capacity assessment conducted in assessing

ORDA’s capacity in complying with USAID funding requirements. The capacity building

support of FHE enabled ORDA to move one step from sub grantee to thinking of consortium

member in USAID funded projects. During the capacity support program, ORDA has got a

chance to meet and discuss with the USAID management and learnt that it is a best strategy to

follow a stepwise approach to access direct funding from USAID. This is an indication to start

with small grant to directly access USAID’s fund.

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However; the strategic move to partnership that the management of ORDA believed is

enhancing visibility through working in consortium and compute to directly accessing big

grants. Accordingly, the enhanced capacity building support enabled ORDA to be a consortium

member in DFAP II program and this created opportunity for ORDA to be more visible in

USAID funding as ORDA is the lead in one of the component of the project. ORDA’s

management believe this as one areas of lesson acquired and being a consortium member will

transform ORDA to directly access USAID big fund in the next five years time.

The capacity building strategy and approach followed (i.e. assignment of the expat and starting

the capacity building process from within) is found to be a good lesson. This approach has

brought significant transformation.

Immense desire of the Organization for change at all levels can indeed bring fast changes.

ORDA in this regards can be typical model. All the department of ORDA was very much

aware of the gap identified by the capacity builder and acted on the recommendations showing

the dedication and commitment of both the staffs and management of ORDA.

XII. Conclusions and recommendations

12.1. Conclusion FHE capacity supports to ORDA found to be relevant specially in making ORDA comply with

USAID grant management requirements. The supports are seen to be multi-dimensional and

follow right and logical process (i.e. from capacity assessment to determine the status, identify

what is lacking, and prepare the action plan and act accordingly and finally to capacity review to

measure the change). The approach followed, that is the assignment of expat to ORDA was

discovered to noble and helpful to start the change from within and bring fast and full-fledged

transformation.

The contribution of the multifaceted support is confirmed to be positives and visible in every

department of ORDA and the result is progressive and very strong in most departments such as

HR, administration and logistic, procurement and finance. Moreover, the supports are especially

very successful in terms of enabling each department to have their own policies and manuals as

well as guidelines that harmonize donors’ policies and requirements. The support also succeeded

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in enhancing the knowledge and skill of ORDA’s staffs towards donors’ working environments

and procedures and on how to comply with donors’ requirement.

It is also conclude that, the commitment, interest and dedication of ORDA’s management,

technical and support staffs as well as the commitment of FHE was a fertile ground for the

implementation of the capacity building supports and the achievement of the set objectives.

It is concluded that there are some missed opportunities that both ORDA and FHE has lost.

ORDA and FHE have moved a very long journey in implementing development projects in

Amhara Region and they understood each other. However, due to lack of discussion they could

not continue working together. It would have been good if ORDA had explained its interest on

how and in what future ORDA want to work with FHE in the second DFAP. As discussed by

FHE, there was an opportunity to work with FHE as consortium and this would have been very

helpful as both FHE and ORDA know each other specially in implementing DFAP 1.

12.2. Recommendation Recommendations

Recommendation for FHE:

The multi faceted support of FHE to ORDA has enormously contributed to enhance ORDA’s Capacity. However, the support was mainly confined to ORDA’s Headquarter. The knowledge of the project staffs and offices at Woreda level on USAID grant management is somewhat limited indicating the knowledge in not adequately cascaded to the ground. It is recommended therefore that, while undertaking such types of capacity support, FHE should consider staffs and offices of partners at ground level and should develop a system, together with the partners, to address them with adequate budget and follow-up mechanism.

FHE capacity support had two main phases: phase one: undertaking gap assessment and

ensuring availability of working policies and manuals and procedures; and second phase: familiarizing the developed policies and procedures to staffs and start working with the new policies and procedures. The first phase of the support found to be more successful than the second one. There had not been adequate time to implement the second phase and early departure of the seconded staff was also a problem. We therefore recommend FHE to assign sufficient time for each activity while doing such types of capacity building. We also suggest midterm review or other kinds of progress assessment that can help to check whether the support is on track and made timely corrections.

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The major objective of the capacity support of FHE to ORDA is to help it develop a capacity to independently access to USAID grant. In this regard FHE has enormously supported ORDA to bolster its capacity. But, the partnership agreement limits ORDA not to directly participate in some important activities, for instance participate to independently manage commodities from the seaport to the distribution centre, which was very important capacity for ORDA to access USAID grant. We therefore, recommend FHE that while carrying out such types of support, prepare a partnership agreement that have a room which enables partners like ORDA to engage in such important activities after making a thorough assessments of capacities.

Recommendations for ORDA:

Though ORDA has been implementing many of projects and addressed marginalized communities, it is poor in documenting best practices and lessons that can be used as learning. We strongly recommend ORDA to effectively documenting lessons learned; best practices in a manner that can be easily accessed and used. Using technologies that can simplify accessing the best practice and lesson learnt is strongly recommended.

ORDA has different staff retaining mechanism including provision of education opportunity and providing hardship allowance. However, ORDA’s staff salary is still low comparing with the current market leading to high staff turnover. We therefore recommend ORDA to consider of improvement of staff salary and benefit package, otherwise, the staff turnover will continue to be grave danger to the organization;

Since ORDA has a plan to independently apply for USAID grant. One of the competency areas that USAID requires from ORDA is a good practical experience in effectively managing commodity from the seaport to beneficiaries. As ORDA does not have practical experience in this regard we recommend ORDA to acquire such experience using all available opportunities.

With the support of FHE, ORDA has established fixed asset management systems with trained staffs. It has shown improvement in undertaking asset inventory to effectively manage fixed assets. However, the fixed asset registration lacks documentation of depreciation rate and calculation. We therefore, recommend ORDA to effectively document depreciation rate and calculation for the fixed asset.

Over the last thirty years ORDA has ensured progressive achievements that helped millions of marginalized people to be survived and improve their livelihood. However, ORDA has no practice of regularly organizing learning and knowledge sharing event. In order to be more visible at national and international level, ORDA need to organize such events regularly and invite donors’ communities and stakeholders to these events. This event will help ORDA to be on board with donor communities and other important stakeholders.

As per the assessment, ORDA is successful in preparing wining proposals. However, it is found out that ORDA is not strong in developing innovative proposals that have taken in to account the current climate change and the changing needs of the donors. We therefore,

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recommend, ORDA to work hard in this regards to develop innovative projects (that use renewable energy sources like solar and wind power) and win the attention of the donors’ communities.

Integrating Gender at organizational level is overlooked. This is clearly manifested at the leadership position of ORDA where no woman is represented. Therefore, in order to maximize the impact of gender work in programming and results at community level, ORDA should strongly work on organizational transformation from gender perspective.

Audit and inspection section of ORDA has missed opportunity to internally audit ORDA’s compliance with the USAID grant management requirements in particular and donor agencies in general. As ORDA has a plan to independently apply for USAID fund in the future, it is recommended that the audit and inspection unit to undertake audit on ORDA’s compliance with Donors’ grant management requirement.

Despite improvement in developing standard financial report, the field office finance staffs are not fully equipped to produce financial reports using the USAID reporting formats. The consultant would like to recommend ORDA to provide full-fledged assistance and put in place the required system to enable the project office independently produce financial report that complies Donor’s requirement. This will help ease ORDA’s financial reporting process and reduce the time taken to produce the expected report within the deadline.

Currently, due to high competition over resources internationally, the probability getting sufficient financial resources is becoming tough. ORDA need to focus on income generating activities internally so as to diversity its financial sources. It is found out during the assessment that ORDA has opportunities to engage in income generating activities and have been working on it yet there is a need to pace up things.

The consultant has observed gaps in the grant management responsibility of the Grant Management Unit. The role and responsibilities of the grant management section is not clear and limited to facilitating project agreements and reminding project staffs as the project agreement is approaching phase out stage to timely complete project activities. Officers in the section also have limited knowledge of Donor’s Grant management requirements including USAID grant management. We therefore recommend the staff to be well armed with the required knowledge in this regards and contribute what ORDA expect from the section. There is a need to revise the role and responsibilities of the section to make the section effectively work on ensuring donor’s grant management compliances are adequately addressed.

ORDA has made great strides in timely delivery of progress reports even though the quality of reports in terms of presenting success or case stories and documenting lessons needs further improvements. We recommend ORDA to prepare a report to contain success stories and lessons so that it can sell its achievement to donor’s communities. We also strongly recommend ORDA to effectively documenting lessons learned; best practices and documentations need to be well organized and readily available for learning.

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The key learning practices and experiences are not systematically organized and sporadically documented. ORDA’s knowledge management system is found out to be weak and needs further improvement aiming at full utilization of the newly developed knowledge management guideline.

ORDA management team suggested hiring external consultant to develop proposals to be submitted for USAID for funding. but, FHE management indicated that hiring of consultants for proposal development is costly, lengthy and has hectic process and they instead suggest hiring experienced seconded consultant on permanent basis for some times to develop proposal and in the meantime deliver on job training on quality proposal development that fulfill USAID’s requirement. The consultant therefore would like to suggest ORDA to re-think again, assess the experience of other similar development actors and decide on the best option.

The current ORDA’s, have not been delivering what the organization has been expecting from then, especially in enabling ORDA’s to win the attention of big donors. We, therefore, strongly recommend ORDA’s BoD to be constituted by personalities who have strong commitments and passion to move ORDA forward.

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XII. Annex 1. Assessment questionnaire

Keys: 1. strongly disagree; 2. Disagree; 3. somewhat agree; 4. Agree; 5. strongly agree.

A. Human Resource Management

No. Description Response by Coode Average

Rank Baseline Average Result

Code 1

Code 2 Code 3 Code 4 Code 5

1 HR policy is put in place to ensure recruitment, deployment, performance appraisal, promotion, remuneration, etc

5 5 5 5 5 5 2 Standards of conduct are set to address the

behavior and professional conduct that affect the employee’s ability to perform his/her job and represent the organization

5

4 4 4 5 4.4 3 3 There is a written Job Description (JD) for

each staffs 5

5 5 5 5 5 3 4 Policy defining the role of volunteers is put

in place 1

4 2 4 4 3 2 5 Employee handbook shared with all staff s

exists

4 4 4 3.75 3 6 HIV/AIDS Policy which defines an

organization’s stance on the employment of persons living with HIV or AIDS and the expected treatment in the workplace is put in place

4 4 4 5 4.2 4 7 There is diligence in Hiring Decisions; HR

takes a summary of a candidate’s academic and work history (a Curriculum Vitae or CV) for every employee hired

4 3 5 5 4.2 5 8 A policy demanding drug free workplace

is instituted

5 2 5 4 2 9 Managers conduct supportive supervision

to create healthy work environment and improve and sustain the performance and satisfaction of their staffs

4

4 4 4 5 4.2 4 10 A vibrant staffs performance management

system including performance appraisal, performance improvement plan, etc is put in place

4

4 5 4 4 4.2 4 11 Regular feedback is given to staffs to

improve performance 3

4 2 4 4 3.4 3

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B. Financial Management

Respondents code Average Rank

Baseline Average Result

No Description Code 1

Code 2

Code 3

Code 4

Code 5

Code 6

1 The finance/grants management team understand and properly apply the USG cost principles (A-122)

5 4 4 5 4

5 4.20

2.8 2 The staffs clearly understand how to take advantage of

the approved work plan and budget to manage the financial disbursement and settlement process

5 4 4 5 4

5 4.50

3.8 3 Financial resource management policy and operation

guideline that ensure accountability of the partner to donors, communities, etc is put in place. 5 4 5 5 4

5 4.67

3.4 4 There is audit policy and system to ensure financial,

commodity resources and fixed assets are properly utilized and maintained 5 5 5 5 5

5 5.00

2.8 5 Finance staffs clearly understand and apply the

accounting and financial administrative systems of donors as a component of financial management 5 5 5 5 5

5 5.00

2 6 Finance team understands and applies the USAIDs key

pillars of financial management( planning, organizing, controlling, etc) 4 5 4 5 4

5 4.50

2.8 7 The Executive Director (ED) Ensure accurate and

timely preparation and submission of financial reports 5 5 4 5 4 4 4.50

3.4 8 The ED ensure program activities are in line with

budget and deliverables 5 5 4 5 4 4 4.50

2.6 9 The ED monitor financial needs of the organization

and business planning 5 5 4 5 4 4 4.50

3.2 10 The senior managers administer and monitor the

budgets for their departments or projects 5 5 5 5 4 4 4.67

3 11 The senior program managers review financial reports,

give feedback and prepare Future financial needs. 5 5 3 5 5 4 4.50

3.2 12 Program staffs control budgets to ensure money is

spent as agreed and work with finance staff to ensure policies and procedures are followed, expenditures are coded and reported accurately 4 5 5 5 5

4 4.67

3.6 13 Finance staffs complete the books of accounts and

reconcile them every month 5 5 5 5 4 5 4.83

3.8 14 Finance staffs prepare quality reports using the

standard procedures of donors and Submit within the timeframe. 4 5 5 5 4

4 4.50

3.2

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C. Logistic /Property and Resource management

Average Rank

Baseline Average Result

No. Description Code 1

Code 2

Code 3

Code 4

Code 5

1 The logistics team Understands the USG procurement policy and procedures (what? where? How to buy? Applicable taxes? Documentations required? This includes purchase, rental services, contract administration, fixed asset management

4

4 4 5 5 4.4 3 2 Written standards of conducts are developed for employees and

officers involved in selecting and overseeing procurement which include (conflict of interest, gratuities,) disciplinary dictions

4

4 5 5 5 4.6 1.6 3 Procurement policy includes free and open competition, general

procurement procedures, instruments, contractor evaluation, documentation procedure

4

4 5 4 5 4.4 3.3 4 The organization understands what is allowed and what is not

allowed. Lists of allowable and non-allowable items are recorded in the orgs docs

4

4 4 4 5 4.2 3 5 There is understanding about the restricted and prohibited

purchases, transactions, sources 4

5 4 5 5 4.6 3.6 6 Restricted commodities that need prior approval from USG

(agricultural commodities, motor vehicles, pharmaceuticals, Pesticides, used equipment, U.S.) are well known

4

5 4 4 5 4.4 2 7 The logistics team knows well the Prohibited items: military

equipment, surveillance equipment, commodities and services for support of police or other law enforcement organs; abortion equipment and services; luxury goods and gambling equipment, including alcoholic beverages, jewelry or expensive textiles; and weather modification equipment.

4

4 5 4 5 4.4 3 8 The purchasing team understands the issues related to taxations

when processing purchase using the USG funds 4

4 5 5 5 4.6 3.3 9 There is policy which prohibits staffs/leaders from accepting any

gift that may influences policy and decisions 4

4 5 5 4.5 2 10 ORDA understands what is allowed and what is not allowed. The

lists of allowable and non- allowable items are recorded in the orgs docs

4

5 4 5 5 4.6 2.6 11 Whenever the partner buys goods or services or hires consultants

using USG funds, it must take steps to ensure that the procurement process is objective and encourages fair and open competition

4

4 4 5 5 4.4 2.66 12 ORDA manages the close out financially, complete all required

deliverables and clarify plans for any equipment or other inventory purchased with USG funds

4

5 5 5 5 4.8 1.66

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C. Program Management

Respondents' Code and response

Average Rank

Baseline Average Rank

No. Description Code 1

Code 2 Code 3

Code 4

Code 5

1 The technical and management capacity of the NGO has improved and it is ready to engage directly with donors, to enhance its capacity to deliver development results.

4

4 4 3 4 3.8 3.69 2 ORDA operates in partnership with local community

organizations, NGOs and private sectors. 5 5 4 4 4 4.4 4.38

3 Capacity building policy and guideline are put in place to enhance the technical and management capacity of staffs 4

4 4 4 4 4 2.69 4 Capacity building assessments are used as baseline to

identify capacity gaps and to develop the CB plan 4 4 4 3 3 3.6 2.69

5 The capacity assessment tools are used to rigorously track CB progress and compare the outcomes against indicators 4 5 3 2 3 3.4 2.79

6 The organization has vibrant DME framework in place as a system critical to carrying out a project effectively and efficiently and boosting accountability to beneficiaries, donors and other stakeholders.

4

4 4 3 4 3.8 3.07 7 The organization uses DME tools to measure project

performance(project is on the right track, on time and on target)

5 4 4 3 3 3.8 3.3

8 Service quality standard is instituted for activities as means of quality assurance. 5

4 4 2 3.75 2.76 9 The program staffs follow up and monitor that funds were

used as intended, and the project/program was implemented as planned and learns whether the program made a difference.

4

3 5 3 4 3.8 3.46 10 The program documents are constructed by including

essential DME elements(baseline, targets, result chains, implementation modalities & work plan , monitoring milestones, evaluation, accountability and learning mechanisms

4

3 4 3 3 3.4 3.38 11 The DME staffs regularly monitor and follow up projects,

provide technical support to staffs and assist the team to solve problems on spot.

4 4 4 3 3 3.6 3.15

12 ORDA is mapping and updating the potential donors with their profiles, contact 3.0 address, interest areas, etc

5

3 3 3 3.5 3 13 Program staffs understand and align with the USG

standards and cost principles, allowable costs and are properly documenting them.

4

2 4 2 3 3 3.07 14 Program managers support technical staffs to prepare work

plan and assign to each Program staff with specific duties and timeframe and monitor the work performance accordingly

5

3 4 3 4 3.8 3.53

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15 The program team holds regular meetings to review the progress, challenge and take timely correction in the implementation process

5 3 4 3 4 3.8 3.2

16 ORDA makes realistic promises and delivers on them: it doesn’t compromise the quality of the work for the sake of speed.

-

3 4 3 3 3.25 3.46 17 ORDA uses donor funds and implements the program as

described in the proposal; notifies the donor of any needed alterations (for example, changes in scope, location of work, target audience) to its work right away to get guidance on how the donor would like it to proceed.

4

4 4 3 4 3.8 3.84 18 Sharing achievements, recognize and give credit to donors:

ORDA can acknowledge the contribution of donors and disseminates using different media sources to publicize program results broadly and through a variety of media: newspapers, radio, websites, social media, conferences, meetings, special events

4

3 4 3 3 3.4 3.61 19 ORDA has the experience of hosting visitors and taking

opportunities to showcase of programs in order to build its reputation and image

5

3 3 3 4 3.6 3.38 20 ORDA complies with the USAID environmental requirements

and environmental impact assessment, 5 3 4 3 3 3.6 3.46 21 ORDA has the capacity and experience to conduct

environmental impact assessment 5 5 4 3 3 4 3.2 22 ORDA has clear policy/ strategy for engaging the

communities in its programs 5 4 4 3 3 3.8 3.23 23 ORDA’s programming approaches are participatory, right

based, conflict sensitive, gender sensitive, environmentally friendly, etc.

4

5 4 3 3 3.8 3.61 24 The semiannual/annual activity and financial reports are

complete, consistent, accurately describes program deliverables with success stories and submitted within due dates.

5

4 4 3 3 3.8 3.3 25 Reports are prepared by comparing the plan with

accomplishments; budget and the work plan are taken as baseline for comparison.

4 3 5 4 4 4 3.76

26 Changes made on activities and budgets are known before the report is issued 4 4 4 3 4 3.8 3.69

27 The performance report provides a balanced look at the program, both in terms of progress as well as setbacks.

4 4 4 3 4 3.8 3.69

28 Organizational learning and reflections are conducted to enhance program and organizational effectiveness 4 4 3 2 3 3.2 2.92

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D. Procurement Team

Area of focus

No. Questions/descriptions Code 1

Code 2

Code 3

Code 4

Code 5

Code 6

Average Rank

Operational Policies, procedures and systems

1 Different written operational procedures are put in place and fully used for effective procurement management

4

5 4 4 5 4 4.33 2 The operational policies and procedures are

prepared in a manner that is easy for non-procurement staff to understand and apply

4

4 3 4 4 4 3.83 3 The operational policies and procedures are very

accessible to all staff members of the department 4

5 4 5 4 4 4.33 4 ORDA has procurement policy and the policy is

adequately supporting the needs of the Organization (procurement responsibilities, procurement planning, competition, exceptions, award, delivery and inspection, documentation, inventory, etc.)

5

5 4 5 5 5 4.83 5 The procurement policies address donor specific

procurement regulation (For USAID-funded projects, these include: code of ethics; listing of restricted and ineligible goods; source and origin restrictions; verification of supplier eligibility through the Excluded Parties List System [EPLS] and State Department terrorist watch list, approval requirements

4

4 3 2 3 4 3.33 6 ORDA has prepared procurement plan which is

consistent with Organizational Plan and it is regularly updated?

4

5 2 4 4 4 3.83 7 The procurement manual of ORDA entertain the

procurement policy and procedures of USAID 4

3 5 4 4 3.33 8 The purchase department at ORDA Head Quarter

monitors and provides technical support to help the project adhere to the procedures

4

5 4 3 3 3 3.67 9 ORDA manage to record list of allowable and

non-allowable items in the procurement policy document

4

4 3 3 3 4 3.50 Staff

knowledge with

USAID

10 All staff are trained on USAID procurement compliance procedure and this helped them to become familiar with USAID procurement compliance procedures

3

3 2 3 2 3 2.67

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compliance to logistic

and commodity manageme

nt

11 All purchase manager, senior management and project staffs and purchasers have full understanding of the prohibited items to purchase using the USAID fund

4

4 4 3 3 3 3.50 Baseline

Information

12 ORDA management is trying to solve problems of purchases associated with the difference in the budget years of Donors which leads to fragmentation of purchase request and disruption of the plan

4

5 4 5 3 5 4.33 13 ORDA adopt code of conduct to be applied to the

staff engaged in the procurement of goods and services and this code of conduct is very helpful in effectively managing the procurement process

4

5 4 5 4 4 4.33

2. Focused Group Discussion (FDG) Participant list

FGD – O1 Human Resource Management Team Name Sex Position

Mengisit Gashaw M Personnel and Insurance Admin officer

Asmarech Frede F Archive Head

Degarge Gashaw M General Service Head

Agegnehu Bezie M Personnel Data Encoder

Abeba Mekonnen F Human Resource Admin Officer

Mekonnen Tilahun M Human Resources Development Management Head

Dejen Tarke M Capacity Building and HR Officer

Siradink Fetene F Personnel and Pension Admin Officer

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FGD -02 Financial Management Team

Name Sex Position

Tezeru Getie F Program Accountant

Tedla Tefera M Audit Manager

Kiber Tigabu M Finance Manager

Habtamu Yilak M Program Accountant

Mekonnen Defar M Program Accountant

Likinu Alemnehe M Program Accountant

Kasahun Yimer M Finance Manager

Goshu Kesi M Finance Director

FGD- 03 Properties and Resource Management Team

Wederyelesh Degene F Property Admin officer

Habtamu Ashagre M Commodity Accountant

Demewa Tadesse M Transport Officer

Kassa Tilahun M Property and Transport Manager

Mengistu Mehertie M Property Administration officer

FGD-04 Business Development Action Research Program (BDARP) Team

Name Sex Position

Hileleul Admasie M BDARP Manager

Sitotaw Zewdie M BDARP – MLE officer

Dires Admas M MEL Officer

Abebe Beyene M Grant Management Officer

Meaza Tigabie F Grant Management Officer

Shimelis Mohammed M BDARP –Director

Ayana Molla M M and E and Data Base Officer

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FGD- 05 Senior Management Team

Name Sex Position

Dr. Amlaku M Executive Director

Dejene M

Eshete Gelagaye M

FGD- 06 Procurement Management Team

Name Sex Position

Yalelete Admas M Procurement Officer

Melkamu Zena M Procurement Officer

Sewalem Kassahun M Procurement Officer

Simachew Bizuayehu M Procurement Officer

Bayih Berie M Procurement Officer

Mikir Tesfahun M Procurement Manager

FGD- 07 FHE Head Quarter Staff

Name Sex Position

Gossa Turfassa M Commodity Manager

Getahun Shebeshi M Deputy Chief of Party

Fassil Setargie M Program Manager

Azeb Debebe F Compliance Manager

Tesfaye Legesse M Title II Program Manager

Yohannes Belihu M Design, Monitoring and Evaluation Manager

Hiwot Getachew F Operations Director

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