Humanitarian Financing ACF Training – March 2010 Session I: Humanitarian Financing (Appeals processes, pooled funding mechanisms, role of clusters, CERF exercise) Session II: Financial Tracking Service (FTS) and CAP Project Database (OPS)

ACF Training – March 2010 Humanitarian Finance - the basics DEMAND:(Appeals for funding) - stand-alone appeals - consolidated appeals processes Flash Appeals Consolidated Appeals Process (CAPs) Common Humanitarian Action/Response plans – Afg, Pak, Yemen, SL, Kenya, Nepal, Myanmar SUPPLY SUPPLY:(Funding sources) National government civil society NGO funds bilateral donors multilateral donors private sector pooled funds CERF Emergency Response Fund Common Humanitarian Fund

ACF Training – March 2010 Demand side: Appeals

ACF Training – March 2010 What is a Flash Appeal? overview of urgent life-saving needs within a week of emergency's onset acute needs 3- 6 months Includes: rapid needs assessments (3 days!) all cluster response plans projects for funding

ACF Training – March 2010 Indicative timeframe Day 1 HC/RC triggers flash appeal – consults country team & government. Day 2-4 Clusters conduct rapid needs assessment and prepare sector response plans and select projects. Day 5 HC sends final draft to OCHA CAP Section, which circulates it for comment within 24 hr to IASC HQs. Day 7 CAP Section processes & electronically publishes document Official launch of appeal Donors select from menu of projects. Indicative timeframe

ACF Training – March 2010 What is a CAP? A Consolidated Appeal is, basically, a longer version of a Flash Appeal (12 months), for longer-term crises, offering more analysis and detail.

ACF Training – March 2010 Supply side: Pooled funds

ACF Training – March 2010 Pooled funds 3 types: CERF CERF - Central Emergency Response Fund CHF CHF - Common humanitarian funds ERF ERF – Emergency Response Funds Worldwide…. Country specific…. Small scale for gaps….

ACF Training – March 2010 Flash Appeal – Multiple donors CERF Project proposals Cluster Response Plan plus projects Consolidated Appeals Process (CAP) 6 months on up to 6 months Timeline for Planning and Appeals

ACF Training – March 2010 Clusters have crucial role: involve all cluster participants coordinate rapid needs assessments set cluster strategy and priorities lead & coordinate response plans gather project proposals inclusively vet projects transparently ALL VERY FAST!

ACF Training – March 2010 What is CERF? 1.Rapid response grants (2/3 of grant facility) 2.Under-funded crises (1/3 of grant facility) if no other funding source immediately available, including agencies’ own unearmarked agency funds and earmarked donor grants 3. Loans ($50 million) funding committed but not yet paid; or commitment very likely to meet immediate relief needs max. per emergency is US$ 30m min. CERF grant allocation per project is US$ 100,000 funding to be committed within 3 months

ACF Training – March 2010 Who can receive CERF Grants? NGOs cannot apply directly for CERF funds, but: –should participate in process as part of the Cluster – do receive funds as implementing partners of UN agencies & IOM

ACF Training – March 2010 Life-saving activities or services Time-critical actions or resources Essential CERF criteria If not met, then

ACF Training – March 2010 CERF Funding Criteria All projects funded through the CERF grant component must be for life-saving / core emergency humanitarian programmes defined as: Activities that, within a short time span, remedy, mitigate or avert direct loss of life, physical harm or threats to a population or major portion thereof. –Also permissible are common humanitarian services that are necessary to enable life-saving activities (e.g. air support, emergency telecommunications, logistics).

ACF Training – March 2010 Activities Outside CERF Mandate Activities that are not immediately life-saving, such as disaster mitigation, early warning, prevention and preparedness, economic recovery, poverty reduction, and disarmament, are not suitable for the CERF. CERF contributions do not cover: –Recurrent costs (regular government staff salaries, running office and maintenance costs, etc.) –Regular agency stockpiling –Capacity building and training (funded only if related to direct implementation of emergency response) ** Proposals that contain life-saving elements in the project narrative but the budgets focus on non-life- saving elements are not suitable for the CERF grant window. **

ACF Training – March 2010 Examples of Life-Saving Activities SECTORCRITERIAEXAMPLES AgricultureActivities that have a direct and immediate impact in protecting and restoring the livelihood of families affected by an emergency Provision of seeds, tools and fertilizer to restore food production capacity, survival of productive animals when primary source of livelihood, initial inputs for plague control Coordination and support services Activities that support the delivery of priority life-saving activities provided by UN agencies, NGOs and governments in emergency response Emergency telecommunications equipment, evacuation services, transport, Joint Logistics Centers, safety and security measures Education in Emergencies Interventions aiming at restoring educational and recreational activities for children and adolescents during an emergency School tents and other education material, emergency repair of primary education facilities, essential life-saving skills

ACF Training – March 2010 Examples of Life-Saving Activities SECTORCRITERIAEXAMPLES Food AidProvision of minimum food requirements / basic food rations to people affected by emergencies General food distributions to fill gaps / pipeline breaks for the most vulnerable groups HealthActivities that have an immediate impact on the health of population affected by an emergency Mass casualty management, Primary Health Care, SGBV response and psycho-social support, reproductive health emergency interventions, immunizations, outbreak control, HIV/AIDS emergency awareness, disease surveillance NutritionManagement of severe and moderately acute malnutrition Infant feeding in emergencies, micronutrient supplementation, therapeutic feeding centers

ACF Training – March 2010 Examples of Life-Saving Activities SECTORCRITERIAEXAMPLES Shelter and NFIs Immediate provision of temporary/ semi-temporary shelter and basic NFIs for victims of disaster. Provision and distribution of materials, construction / repair of emergency shelter, cash grants / cash for work on a case by case basis Protection / Human Rights / Rule of Law Activities aiming at providing physical, social and legal protection (access to basic rights) to individuals and families affected by emergencies or protracted displacement situations Establishment of IDP/refugee camps, profiling of IDP / refugee populations for registration, child protection, SGBV response, psychosocial counseling and Human Rights awareness. Assistance for relocation and creation of minimum conditions for return

ACF Training – March 2010 Examples of Life-Saving Activities SECTORCRITERIAEXAMPLES Water, Sanitation and Hygiene Provision of minimum requirements of water, sanitation and hygiene standards in emergency situations Provision of drinking water, emergency repair to wells/boreholes/pumps, water purification systems, sanitation systems, hygiene and sanitation supplies and awareness raising Mine action Activities that create immediate conditions of physical safety of populations affected by an emergency Emergency de-mining to allow humanitarian access, mine awareness and education

Life-SavingMaybe, depending on context Not Life-Saving Primary HealthcareDe-miningInfrastructure Reconstruction Therapeutic FeedingLivestock VaccinationsIM systems Emergency Watsan General Food Distributions Micro-credit Shelter/NFISurveillance systemsPreparedness Plans Protection Em. Education Psycho-socialVulnerability assessments Priority Activities

ACF Training – March 2010 … Main reason for delays in CERF funding… BUDGET ERRORS

ACF Training – March 2010 What is wrong with this budget? Cost breakdown Amount ( USD) A. Staff costs (salaries and other entitlements) (drivers to deliver food)$50,000 B. Travel- C. Contractual Services- D. Operations (please itemize below; add rows if necessary) Transport of food and water containers$50,000 - E. Acquisitions F. Other- Subtotal project requirements $200,000 G. Indirect programe support costs (not to exceed 7% of subtotal project costs) PSC amount (none needed) 0 Total cost $200,000

ACF Training – March Cost breakdown Amount ( USD) A. Staff costs (salaries and other entitlements) (drivers to deliver food) B. Travel C. Contractual Services D. Operations (please itemize below; add rows if necessary) Transport of food and water containers E. Acquisitions F. Other Subtotal project requirements G. Indirect programe support costs (not to exceed 7% of subtotal project costs) PSC amount (none needed) Total cost $4,000,000 What is wrong with this budget?

ACF Training – March 2010 Time for an exercise!