1. ESTHER KUISCH-LAROCHE CHIEF, FINANCIAL TRACKING SERVICE
HUMANITARIAN
FINANCING
ESTHER KUISCH-LAROCHE
CHIEF, FINANCIAL TRACKING SERVICE 1

2. Pooled funding mechanisms
HUMANITARIAN FINANCING
Appeals processes
Pooled funding mechanisms
CERF exercise
FTS and OPS 2

3. HUMANITARIAN FINANCING
DEMAND
Agency-specific appeals
NGO consortium appeals
Project proposals to bilateral donors
Consolidated appeals processes
Flash Appeals
CAPs
SUPPLY
National government
Civil society
NGO funds
Bilateral donors
Multilateral donors
Private sector
Pooled funds
(CERF, CHF, ERF) 3

4. DEMAND SIDE: JOINT APPEALS FOR FUNDING
Consolidated appeals processes:
Flash Appeals - sudden onset disasters
Consolidated Appeals
(CAP) –
on-going (complex) emergencies 4

5. HISTORICAL BACKGROUND
What emergency in 1991 was the catalyst for the creation of the Consolidated Appeals Process?
The Kurdish Refugee Crisis
WHY:
massive refugee influx
uncoordinated response
chaos 5

6. General Assembly Resolution 46/182, December 1991:
HISTORICAL BACKGROUND
General Assembly Resolution 46/182, December 1991:
Strengthening the coordination of humanitarian emergency assistance of the United Nations by:
Creation of the Emergency Relief Coordinator (ERC)
Inter-agency Standing Committee (IASC)
Consolidated Appeals Process (CAP)
Central Emergency Revolving Fund (CERF) 6

7. HISTORICAL BACKGROUND
GA Resolution 46/182:
“For emergencies requiring a consolidated response, the Secretary-General should ensure that an initial Consolidated Appeal covering all concerned organisations of the system, prepared in consultation with the affected State, is issued within the shortest possible time…” 7

8. FLASH APPEALS – WHAT IS A FLASH APPEAL?
Overview of urgent life-saving needs
Within a week of emergency's onset
Acute needs 3- 6 months
Consolidated Appeal (CAP) for longer-term emergencies
Includes:
rapid needs assessments (3 days!)
cluster response plans
projects for funding 8

9. FLASH APPEALS – INDICATIVE TIMEFRAME
Day 1 - HC/RC triggers flash appeal – consults country team & government.
Day Clusters conduct rapid needs assessment and prepare cluster 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.
Week 4 - Revision of flash appeal 9

10. ROLE OF CLUSTER COORDINATORS IN THE FA
Coordinators have crucial role:
Involve all cluster participants
Coordinate rapid needs assessments
Discuss cluster strategy, objectives and priorities
Lead & coordinate response plans
Gather project proposals inclusively
Vet projects transparently
ALL VERY FAST! 10

11. CONSOLIDATED APPEALS – WHAT IS A CAP?
A CAP is basically a longer version of a Flash Appeal (12 months), for longer-term crises, offering more analysis and detail.
It consists of a strategic framework called the Common Humanitarian Action Plan (CHAP) and a list of projects with budgets. Together these two parts are called a Consolidated Appeal.
The CHAP provides:
A common analysis of the context in which humanitarian takes place;
An assessment of needs;
Best, worst, and most likely scenarios for the coming year;
Detailed cluster response plans;
A clear statement of strategic priorities, objectives and goals; and
A framework for monitoring the strategy and revising it if/when necessary. 11

12. = Consolidated Appeal (CAP)
CONSOLIDATED APPEALS – ELEMENTS OF A CAP }
Needs assessment & analysis
Strategic priorities
Sector-specific response plans
Strategic monitoring framework
Common Humanitarian Action Plan (CHAP) +
Inventory of projects and budgets necessary to accomplish the strategy ($)
= Consolidated Appeal (CAP)
It puts a price tag on the humanitarian response and allows donors’ funding to be measured against needs. 12

13. The CHAP is…
The humanitarian sector’s main tool for coordination, strategic planning and programming.
The CAP is…
-Put simply, a consolidated appeal is a (1) strategy, plus an (2) inventory of projects needed to achieve the strategy.

14. The CHAP utilizes a “logical framework” approach to ensure a rational and logical consistency between strategic priorities, sector objectives, monitoring indicators, and activities.
Each strategic priority will have associated sector objectives that will be measured by observable and measurable indicators.

15. The CAP
is not…
A collection of all humanitarian activities in a given country.
The CAP is…
-Put simply, a consolidated appeal is a (1) strategy, plus an (2) inventory of projects needed to achieve the strategy.

16. Typical process: Cluster coordination and needs assessments (on-going)
CHAP consultative workshop – all stakeholders agree strategic priorities
Clusters make detailed response plans & upload projects on OPS.
OCHA supports partners in writing general sections, assembles other parts, circulates to humanitarian country team & HC for approval, then sends to GVA
OCHA-GVA shares with IASC HQ for comments, finalises & publishes
Global launch in Geneva. Possible local launch in country capital.
Make reference to Uganda plan.

17. Then… Donor pledging meeting Monitoring (on-going)
Financial tracking (on-going)
Mid-year review: consultative workshops, draft doc in field, OCHA-GVA publishes, MYR launch
Preparation of next year’s CHAP workshop?

18. If there is a need to change the humanitarian strategy or funding requirements, the document and related projects + budgets can be revised in any way at any time.
This is to make sure that the document is as up-to-date as possible.

19. SUPPLY SIDE: SOURCES OF FUNDING
Focus on pooled fund mechanisms:
CERF
CHF
ERF 19

20. SUPPLY SIDE: POOLED FUNDS
CERF - Central Emergency Response Fund
Global rapid response to sudden onset disasters & funding for neglected or underfunded emergencies
CHF - Common Humanitarian Funds
Large country-specific pooled funds – Sudan, DRC, CAR, Somalia (recently established in June 2010).
ERF – Emergency Response Funds
Smaller country-specific pooled funds for unforeseen needs. (Afghanistan, Colombia, DRC, Ethiopia, Haiti, Indonesia, Iraq, Kenya, Myanmar, Nepal, oPt, Pakistan, Sudan, Uganda, Yemen and Zimbabwe.) 20

21. Complementarity of Pooled Funds
NGO
ERF
Rapid Onset
CHF
CAP
Emergency
CERF (Global) UN

22. COMMON HUMANITARIAN FUNDS (CHF)
The main objective of a CHF is to ensure timely and predictable funding of core activities within a Common Humanitarian Action Plan (CHAP) by providing CHF grants to priority projects included in the CAP. All organisations participating in the CAP are eligible to receive CHF funding.
Allocation rounds are typically undertaken two to three times a year, with the majority of CHF funds allocated at the beginning of the year. Allocations are based on a consultative allocation process that engages clusters and other relevant stakeholders at country level in a comprehensive prioritisation exercise. 22

23. COMMON HUMANITARIAN FUNDS (CHF)
Based on allocation proposals developed and submitted by sector/cluster groups, and supported by a technical Review Board, the HC makes final decisions on CHF grants. An Advisory Board with donor, UN and NGO participation advises the HC on policy issues and strategic direction of the fund.
HC is responsible for the overall management and oversight of the CHF. Day to day management is performed by OCHA. Financial administration is undertaken by UNDP. UNDP receives and manages donor contributions to the fund.
The Emergency Reserve (typically 10%) is used by the HC to respond to unforeseen emergency needs outside the CAP. 23

24. EMERGENCY RESPONSE FUNDS (ERF)
The name Emergency Response Fund (ERF) is used as an umbrella term covering a broad number of country-based funds. The specifics of the individual funds reflect the country contexts in which they have been established and therefore vary. ERFs are known under different names in different countries including Humanitarian Response Funds (HRF).
An ERF is established to provide NGOs and UN with a rapid and flexible in-country funding mechanism to help respond to small shocks and meet the short-term emergency needs of vulnerable communities. The aim of an ERF is to provide initial funding for a sudden onset emergency to enable humanitarian partners to respond to a crisis without delay. 24

25. EMERGENCY RESPONSE FUNDS (ERF)
ERF is not intended to provide core funding to projects or programmes in a protracted crises, although some ERFs may provide funding to critical gaps in the CAP on an exceptional basis.
Under the overall management and oversight of the HC. Day to day management and financial administration performed by OCHA. Funds are channelled through OCHA to NGOs and UN agencies. 25

26. EMERGENCY RESPONSE FUNDS (ERF)
When needs emerge, partners submit proposals for funding to OCHA, and the HC makes decisions on ERF grants supported by a technical Review Board and the clusters. An Advisory Board with donor, UN and NGO participation advises the HC on policy issues and strategic direction of the fund.
Generally, ERFs are relatively small in size (less than $10 million), provides small to medium sized grants (less then $500,000) and predominantly fund NGOs. However, the flexibility of ERFs mean that not all funds adhere to this profile. 26

27. CENTRAL EMERGENCY RESPONSE FUNDS (CERF)
CERF (global) mandate:
Promote early action and response to reduce loss of life
Enhance response to time-critical requirements
Strengthen core elements of humanitarian response in underfunded crisis
Complement existing humanitarian funding 27

28. CENTRAL EMERGENCY RESPONSE FUNDS (CERF)
Rapid response grants (2/3 of grant facility – $300m)
Promote early action and response to reduce loss of life
Enhance response to time-critical requirements
Under-funded crises (1/3 of grant facility - $150m)
Strengthen core elements of humanitarian response in underfunded crises
Loan facility ($50 million)
Funding committed but not yet paid; or commitment very likely 28

29. Flash Appeal – CERF PROPOSALS AND APPEALS PROCESSES Cluster
Timeline for Planning and Appeals
Flash Appeal –
Multiple donors
up to 6 months
Consolidated
Appeals
Process (CAP)
6 months on
Cluster
Response Plan
plus projects
CERF
Project proposals 29

30. CERF – WHO CAN RECEIVE FUNDING?
UN agencies & IOM. (OCHA is not eligible for grants.)
NGOs cannot apply directly for CERF funds, but should participate in process as part of the clusters, and do receive funds as implementing partners of UN agencies & IOM.
To increase transparency NGOs should try to negotiate their role as implementing partners with the UN agencies at the time of the drafting of the CERF application and make sure that they are named as such in the proposal (preferably with the % of funding that will go to them). 30

31. Life-saving activities or services Time-critical actions or resources
CERF – ESSENTIAL CRITERIA
Life-saving activities or services
Time-critical actions or resources
If not met, then 31

32. 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). 32

33. CERF – ACTIVITIES OUTSIDE THE 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.
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. 33

34. GUIDANCE ON PRIORITY ACTIVITIES
Life-Saving
Maybe, depending on context
Not Life-Saving
Primary Healthcare
De-mining
Infrastructure Reconstruction
Therapeutic Feeding
Livestock Vaccinations
IM systems
Emergency
WASH
General Food Distributions
Micro-credit
Shelter/NFI
Surveillance systems
Preparedness Plans
Protection
Psycho-social
Vulnerability assessments
Emergency Education
Life-saving sectors:
Food, health, protection, security, shelter/NFI, watsan, common services
Questionable areas/activities (examples)
Common services – cluster approach strengthening
Health – surveillance systems, cold chain support, reimbursement of user fees, ambulance purchase, training/prevention
Food – General distributions
Education – Emergency Education
Agiculture – General Vet Services
Security – de-mining
Not Life-Saving – Does not fulfill CERF criteria
Coordination IM
Preparedness
Prevention
Economic Recovery
Infrastructure 34

35. CERF fills gaps across appeals
CERF –FUNDING CRITERIA
CERF was the largest and fastest source of funding to the 2010 Flash Appeals
CERF fills gaps across appeals
But….. CERF is only 7% of global humanitarian contributions
Keep in mind 35

36. CERF – MAIN REASONS FOR DELAY
BUDGET ERRORS ! 36

37. WHAT IS WRONG WITH THIS BUDGET?
Cost breakdown  
Amount (USD) 
A. Supplies / commodities / equipment / transportation
$50,000
B. Personnel (staff, consultants, travel) -
C. Training of counterparts
D. Contracts
Transport of food and water containers
E. Other Direct costs
Subtotal project requirements
$200,000
G. Indirect programe support costs (not to exceed 7% of subtotal project costs)
PSC amount (none needed)
Total cost

38. WHAT IS WRONG WITH THIS BUDGET?
Cost breakdown  
Amount (USD) 
A. Supplies / commodities / equipment / transportation
Food and water containers
B. Personnel (staff, consultants, travel)
C. Training of counterparts
D. Contracts
E. Other Direct costs
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 38 38

39. CERF LIFE-SAVING CRITERIA
TIME FOR AN EXERCISE! 39