SAIP Operational Manualesap2.org.et/wp-content/uploads/2014/09/SAIP... · SAIP OM: Application for...

SAIP OM: Application for an ESAP2 Grant

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Version April 2014

Ethiopia

Protection of Basic Services

Social Accountability

Program

Grant Agreement [TF099878]

SAIP

Operational Manual

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Contents

List of Abbreviations ______________________________________ 14

1. Introduction and Purpose of the Manual _____________________ 16

1.1 Protection of Basic Services Social Accountability Program (PBS-ESAP)17

1.1.1 Background _________________________________________________________ 17

1.1.2 Objectives of ESAP2 __________________________________________________ 18

1.1.3 ESAP2 Grant Scheme and Budget ________________________________________ 19

1.2 Social Accountability ___________________________________ 20

1.2.1 Social Accountability Tools _____________________________________________ 20

1.2.2 Participatory Budgeting (PB) ___________________________________________ 21

1.2.3 Public Expenditure Tracking (PET) _______________________________________ 21

1.2.4 Citizens’ Report Cards (CRC) ____________________________________________ 22

1.2.5 Community Score Card (CSC) ___________________________________________ 22

1.3 Sectors _____________________________________________ 22

1.3.1 Education ___________________________________________________________ 22

1.3.2 Health _____________________________________________________________ 23

1.3.3 Water and Sanitation _________________________________________________ 23

1.3.4 Agriculture __________________________________________________________ 23

1.3.5 Rural Roads _________________________________________________________ 24

2. Application for anESAP2 Grant ____________________________ 25

2.1 Eligibility ___________________________________________ 25

2.1.1 Eligibility of the Applicants: Who Can Apply? ______________________________ 25

2.1.2 Eligibility of Applications: What Do You Need to Address? ___________________ 25

2.1.3 Eligibility of Costs: What Can Be Covered? ________________________________ 26

2.2 Period of Grant Implementation ___________________________ 28

2.3 Application Submission _________________________________ 29

2.4 Request for Clarifications ________________________________ 30

2.5 Evaluation, Selection and Contracting of Applications ___________ 31

2.5.1 Evaluation of Eligibility and Administrative Criteria _________________________ 31

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2.5.2 Evaluation of the Quality of the Grant Application and Applicant ______________ 32

2.5.2.2 Quality of Application _____________________________________ 35

2.5.2.3 Logical Framework _______________________________________ 39

2.5.2.4 Budget _______________________________________________ 40

2.5.2.5 Higher Relevance _______________________________________ 40

2.5.3 Provisional Selection (Shortlisting) of the Applications ______________________ 42

2.5.3.1 Financial Capacity Assessment _______________________________ 42

2.5.4 Contracting _________________________________________________________ 43

2.5.4.1 Assessor’s Requirements and Contract Negotiation _________________ 43

2.5.4.2 Agreement and Method of Payment ____________________________ 44

2.5.4.3 Amendment of the Grant ___________________________________ 45

2.5.4.4 Suspension and Termination of the Grant _______________________ 45

3. Implementation of an ESAP2 Grant Project ___________________ 47

3.1 Roles and Responsibilities in Implementation _________________ 47

3.1.1 The Management Agency (MA) _________________________________________ 47

3.1.2 The Social Accountability Implementing Partner (SAIP) ______________________ 47

3.2 Capacity Development & Training Program ___________________ 48

3.3 Monitoring and Reporting _______________________________ 49

3.3.1 Quarterly Reporting __________________________________________________ 49

3.3.1.1 Narrative Reporting ______________________________________ 49

3.3.1.2 Financial Reporting ______________________________________ 49

3.3.1.3 The Audit Report _________________________________________ 50

3.3.2 Final Reporting and Closing ____________________________________________ 51

3.3.2.1 Final Narrative Reporting __________________________________ 51

3.3.2.2 Final Financial Reporting and Audit Report ______________________ 52

3.3.2.3 Close Out ______________________________________________ 53

3.3.3 Monitoring and Evaluation _____________________________________________ 53

3.3.3.1 M&E of Progress and Results ________________________________ 53

3.3.3.2 M&E of Financial Implementation _____________________________ 55

3.3.4 Collecting and Disseminating Good Practices ______________________________ 55

3.3.4.1 Collecting Good Practices during Project Implementation ____________ 56

3.3.4.2 Final Dissemination of Results and Lessons Learnt _________________ 56

4. Financial Requirements and Procurement ____________________ 57

4.1 General Accounting Principles ____________________________ 57

4.1.1 General Accounting Policies ____________________________________________ 57

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4.1.1.1 Consistency ____________________________________________ 57

4.1.1.2 Income________________________________________________ 57

4.1.1.3 Categories of Expenditures __________________________________ 57

4.1.1.4 Transparency ___________________________________________ 57

4.1.1.5 Materiality _____________________________________________ 58

4.1.1.6 Disclosure _____________________________________________ 58

4.1.2 Specific Accounting Policies ____________________________________________ 58

4.1.2.1 Financial/Accounting Year __________________________________ 58

4.1.2.2 Basis of Accounting _______________________________________ 58

4.1.2.3 The Accounting System ____________________________________ 58

4.1.2.4 Fixed Assets ____________________________________________ 58

4.1.2.5 Staffing Requirements and Division of Responsibilities ______________ 58

4.1.2.6 IT requirements _________________________________________ 59

4.1.2.7 Internal Controls_________________________________________ 59

4.1.2.8 Segregation of Duties ______________________________________ 59

4.1.2.9 Clear Chart of Account and Budget Code _______________________ 60

4.1.2.10 Cash Management ______________________________________ 60

4.1.2.11 Cheque Payment and Bank Account Management _________________ 60

4.1.2.12 Bank Reconciliation _______________________________________ 62

4.1.2.13 Advances ______________________________________________ 62

4.1.2.14 Budget and Expenditure Control ______________________________ 63

4.2Procurement from the ESAP2 Grant Budget ___________________ 63

5. FAQs ______________________________________________ 64

5.1 Grant Project Planning of Activities _________________________ 64

5.2 Grant Project Financial Planning and Management _____________ 64

5.3 Reimbursable and Eligible Costs ___________________________ 64

5.4 General Grant Project Reporting ___________________________ 67

5.4.1 Grant Project Quarterly Reporting _______________________________________ 68

5.4.2 Grant Project Final Reporting ___________________________________________ 70

5.4.3 Audit Reports _______________________________________________________ 71

Annexes: _______________________________________________ 72

Annex A _______________________________________________ 73

ESAP2 Grant Application Format _____________________________ 73

Project Title ____________________________________________ 73

Grant Budget Requested ($) _________________________________ 73

Date of submission _______________________________________ 73

Full name of lead organization / Applicant #1 _____________________ 76

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Acronym _______________________________________________ 76

Nationality _____________________________________________ 76

Legal status _____________________________________________ 76

Full name of partner organization / Applicant #2 __________________ 77

(delete sections below in case application is submitted by an individual

organization) ___________________________________________ 77

Acronym _______________________________________________ 77


(delete sections below in case application is submitted by a partnership of two

organizations) __________________________________________ 78

Acronym _______________________________________________ 78


(delete sections below in case application is submitted by a partnership of

three organizations) ______________________________________ 79

Acronym _______________________________________________ 79

Annex B _______________________________________________ 89

ESAP2 Logical Framework Format ____________________________ 89

Annex C _______________________________________________ 91

ESAP2 Action Plan Format __________________________________ 91

General guidelines: _______________________________________________________ 91

Budget Format ___________________________________________________________ 94

Detailed Training / Workshop Sheet __________________________________________ 97

Staffing Schedule _________________________________________________________ 99

Budget Note ____________________________________________________________ 100

Annex E ______________________________________________ 101

ESAP2 Grant Application Partnership Statement _________________ 101

Partnership statement ____________________________________________________ 101

Full legal name _________________________________________ 102

(business name) ________________________________________ 102

Annex F ______________________________________________ 103

ESAP2 List of Woredas of Particular Relevance __________________ 103

Addis Ababa City Administration ____________________________ 104

Addis Ketema Sub City ____________________________________ 104

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Arada Sub City__________________________________________ 104

Kirkos Sub City _________________________________________ 104

Ledeta Sub City _________________________________________ 104

Nefas Silk Lafto Sub City __________________________________ 104

Amhara Regional State ____________________________________ 104

Bahir Dar Town _________________________________________ 104

Bure _________________________________________________ 104

Dangela ______________________________________________ 104

DebreMarkos __________________________________________ 104

Ephrata Gidem _________________________________________ 104

Farta ________________________________________________ 104

Metema ______________________________________________ 104

NefasMewchia __________________________________________ 104

BenishangulGumuz Regional State ___________________________ 104

Asosa town ____________________________________________ 104

Dangur _______________________________________________ 104

Kambashi _____________________________________________ 104

Mandura ______________________________________________ 104

Menge _______________________________________________ 104

Dire Dawa City Administration ______________________________ 104

Kebele 02 _____________________________________________ 104

Kebele 03 _____________________________________________ 104

Kebele 05 _____________________________________________ 104

Kebele 08 _____________________________________________ 104

Harari Regional State_____________________________________ 104

Hakim _______________________________________________ 104

Oromia Regional State ____________________________________ 104

Agaro ________________________________________________ 104

Alle 104

Becho ________________________________________________ 104

Bedele _______________________________________________ 104

Bishoftu ______________________________________________ 104

Dandi ________________________________________________ 104

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Dawo ________________________________________________ 104

Degem _______________________________________________ 104

Dugda ________________________________________________ 104

Ejere ________________________________________________ 104

Fedis ________________________________________________ 104

Fental ________________________________________________ 104

GebreGuracha __________________________________________ 104

Ghimbi _______________________________________________ 104

Girja _________________________________________________ 104

Goma ________________________________________________ 104

Haromaya _____________________________________________ 104

Hurumu ______________________________________________ 104

Jarso ________________________________________________ 104

Jimma town ___________________________________________ 104

Kersa (around Hararghe) __________________________________ 104

Kersa (around Jimma) ____________________________________ 104

Kombolcha ____________________________________________ 104

Legehida ______________________________________________ 104

Mettu ________________________________________________ 104

Mulo ________________________________________________ 104

Sawula _______________________________________________ 104

Sebeta _______________________________________________ 104

SedenSodo ____________________________________________ 104

Shalla (Aye) ___________________________________________ 104

Shashemene ___________________________________________ 104

Welmera ______________________________________________ 104

Woliso _______________________________________________ 104

Wuchalle _____________________________________________ 104

Yayo _________________________________________________ 104

Somali Regional State ____________________________________ 104

Aisha ________________________________________________ 104

Shinele _______________________________________________ 104

Southern Nations and Nationalities People Regional State (SNNPRS) ___ 104

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Chencha ______________________________________________ 104

Ghibe ________________________________________________ 104

Hawwasa Town _________________________________________ 104

Limu ________________________________________________ 104

Male _________________________________________________ 104

Misha ________________________________________________ 104

Tigray Regional State _____________________________________ 104

Ahferom ______________________________________________ 104

Alamata ______________________________________________ 104

Dugda ________________________________________________ 104

Tembein ______________________________________________ 104

Genta ________________________________________________ 104

Haffeshom ____________________________________________ 104

GuloMekeda ___________________________________________ 104

KaftaHumera __________________________________________ 104

KeltelteAwealo _________________________________________ 104

Kola Tembein __________________________________________ 104

MedebayZana __________________________________________ 104

Mekele _______________________________________________ 104

MerebLeke ____________________________________________ 104

ShartiSamre ___________________________________________ 104

Somali National Regional State ______________________________ 105

Southern Nations, Nationalities People Regional State _____________ 105

Tigray National Regional State ______________________________ 106

Addis Ababa City Administration ____________________________ 107

Afar National Regional State ________________________________ 107

Amhara National Regional State _____________________________ 107

BenishangulGumuz National Regional State ____________________ 107

Dire Dawa City Administration ______________________________ 107

Gambella National Regional State ____________________________ 107

Harari National Regional State ______________________________ 107

Oromia National Regional State _____________________________ 108

Somali National Regional State ______________________________ 108

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Southern Nations and Nationalities People’s Regional State (SNNPR) __ 108

Tigray National Regional State ______________________________ 108

Annex G ______________________________________________ 109

ESAP2 Eligibility and Administrative Requirements Grid ___________ 109

The lead applicant is a legal entity established for not for profit motives and is

registered with the Government of Ethiopia as an Ethiopian Charity or Society

or an Ethiopian Residents Charity (and documentary proof of this is provided).

109

(If applicable) All partners in the application are legal entities established for

not for profit motives and are registered with the Government of Ethiopia as

Ethiopian Charities or Societies or Ethiopian Residents Charities(and

documentary proof of this is provided). _______________________ 109

The application targets at least two sectors _____________________ 109

The application targets a minimum of 3 and a maximum of 5 woredas __ 109

Per woreda, the application targets a minimum of 3 kebeles _________ 109

The application budget does not exceed the indicated maximum amount of

$237,000 for applications targeting 3 woredas, of $269,000 for applications

targeting 4 woredas or $300,000 for applications targeting 5 woredas __ 109

The application is received by the MA before the closing date and time of this

Call for Proposal ________________________________________ 110

The application is submitted in the formats annex to this Operational Manual

110

The Application is written in English __________________________ 110

The application is typed ___________________________________ 110

ESAP2 Grant Application __________________________________ 110

Supporting document of legal registration with the Government of Ethiopia of

all partners submitting the application ________________________ 110

ESAP2 Logical Framework _________________________________ 110

ESAP2 Action Plan for your Grant Project ______________________ 110

ESAP2 Budget Application, existing of the following four sheets: ______ 110

Budget Format _________________________________________ 110

Detailed Training Sheet ___________________________________ 110

Staffing Schedule ________________________________________ 110

Budget Note ___________________________________________ 110

(if applicable) ESAP2 Grant Application Partnership Statement signed by all

partners for this application (see annex E) ______________________ 110

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Annex H _______________________________________________ 111

ESAP2 Grant Application Evaluation Grid _______________________ 111

Annex I _______________________________________________ 117

ESAP2 Grant Agreement __________________________________ 117

Annex I-1 _____________________________________________ 135

ESAP2 Budget Modification Request Form ______________________ 135

Annex J ______________________________________________ 138

ESAP2 Grant Applicant’s Bank Detail Verification Format ___________ 138

Annex K ______________________________________________ 140

ESAP2 Grant Applicant’s Legal Verification Format _______________ 140

Annex L ______________________________________________ 142

ESAP2 Request for Advance Payment _________________________ 142

Annex M ______________________________________________ 144

ESAP2 Example Attendance Sheet Format ______________________ 144

Annex N ______________________________________________ 145

Procurement Manual for SAIPs participating in the Ethiopia Social

Accountability Program ___________________________________ 145

I. Introduction ________________________________________ 145

II. Expected procurement profile ___________________________ 146

III. Applicable procurement methods – Goods and Non-consulting services147

IV. Selection of Consultants ________________________________ 150

V. Procurement Planning (PP) _____________________________ 151

VI. Procurement records __________________________________ 151

VII. Review by the World Bank ______________________________ 152

VIII. Fraud and corruption _______________________________ 153

ANNEXES _____________________________________________ 154

Annex-1: Sample forms for request for quotation _________________ 154

Annex O ______________________________________________ 164

ESAP2 Timesheet Format for Time Spent by Staff _________________ 164

Full Legal Name Lead Organization ___________________________ 165

Official Address _________________________________________ 165

Name Contact Person _____________________________________ 165

Telephone Number ______________________________________ 165

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Partner Organizations ____________________________________ 165

(if applicable. Delete this row if not applicable) __________________ 165

Title of Grant Project _____________________________________ 165

Contract Number ________________________________________ 165

Contracted Grant Budget ($) ________________________________ 165

Grant project duration ____________________________________ 165

Current Reporting Period __________________________________ 165

Date Submission of Quarterly Report _________________________ 165

Signature Contact Person(Director) __________________________ 165

2.1 Which phase of the Social Accountability process are you currently in? 167

Please select only one phase per Woreda (mark with X). ___________ 167

Name of Woreda ________________________________________ 167

Phases of the Social Accountability process _____________________ 167

Citizens mobilization and access to information: service standards, targets,

planning, budgets _______________________________________ 167

SA tools application: assessing services & identifying needs, including

vulnerable groups _______________________________________ 167

Interface meetings between citizens and service providers: agree a joint action

plan (reform agenda) _____________________________________ 167

Monitoring the implementation of the joint action plan developed after the

interface meeting. _______________________________________ 167

1 167

2 167

3 167

4 167

5 167

2.2 How do you feel you are doing in this reporting quarter? ________ 167

Please be honest, so that the MA can provide support where needed. You can

specify per Woreda if needed. _______________________________ 167

Select only one answer: mark with X __________________________ 167

Please explain __________________________________________ 167

We are doing very well ____________________________________ 167

We are doing ok _________________________________________ 167

We are not doing so well, we need support ______________________ 167

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2.3 Challenges and opportunities ____________________________ 167

2.3.1 What service issues are citizens identifying, e.g. during rapid assessment,

SA tools application, interface meetings, monitoring of joint action plan

implementation? Please explain what opportunities and challenges you see for

service improvements (e.g. budget allocation). ___________________ 167

MA Outcome indicator 2.1 and OI 2.4 __________________________ 167

Maximum half page… ____________________________________ 168

2.3.2 What opportunities and challenges are you observing with the functioning

of the SAC to involve citizens in Social Accountability? Think about SAC

leadership with SA tools application; motivation of SAC members,

representation of vulnerable groups in FDGs, relationship among

citizens/service providers/local government in the SAC, SAC collaboration

with CBOs, sustainability of the SAC, etc. ______________________ 168

MA output indicator OI 2.1.1 ________________________________ 168


2.3.3 What opportunities and challenges are you observing with the response of

service providers in the social accountability process? _____________ 168

MA outcome indicator 1.2 __________________________________ 168


2.3.4 What opportunities and challenges do you experience in promoting Social

Accountability within the Kebeles (e.g. ongoing sensitization) and beyond (e.g.

collaboration with other NGOs, presentations at government organized

meetings, sharing in networks/forums. ________________________ 168

MA OI 4.2.2 ____________________________________________ 168


2.3.5 Considering the above, what actions do you propose to take adsvantage of

the opportunities and to face the challenges? ____________________ 168

2.3.1 service issues raised by citizens: _________________________ 169

2.3.2 functioning of the SAC: _______________________________ 169

2.3.3 service providers response to SA: ________________________ 169

Annex Q ______________________________________________ 180

Final Narrative Report Format ______________________________ 180

Full Legal Name Lead Organization ___________________________ 180

Official Address _________________________________________ 180

Name Contact Person _____________________________________ 180

Telephone Number ______________________________________ 180

Partner Organizations ____________________________________ 180

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(if applicable. Delete if not applicable) ________________________ 180

Title of Grant Project _____________________________________ 180

Grant Agreement Reference Number __________________________ 180

Contracted Grant Budget ($) ________________________________ 180

Grant project duration ____________________________________ 180

Current Reporting Period __________________________________ 180

(minimum 2, thick the box: ) ______________________________ 181

(minimum 3 kebeles per woreda) ____________________________ 181

Date of Submission of Final Narrative Report ____________________ 181

Signature Contact Person __________________________________ 181

(please describe shortly the implementation of the grant project in the current

reporting period. By doing so, please highlight your main achievements and

challenges encountered. __________________________________ 182

Limit yourself to a maximum of 250 words.) ____________________ 182

Annex R: ______________________________________________ 194

ToR for the ESAP2 Audit Report on the Quarterly and Final Financial Reports

of Grants to SAIPs as part of PBS (a World Bank financed project) _____ 194

1. Background ________________________________________ 194

2. Objective of the project audit ____________________________ 194

3. Preparation of the quarterly and final financial reports _________ 195

4. Scope of the audit ____________________________________ 195

5. Quarterly / final financial reports _________________________ 197

Annex s: ______________________________________________ 200

ESAP2 Financial Reporting Format ___________________________ 200

Annex T: ______________________________________________ 233

Simplification of Financial Reporting Requirements of ESAP2 ________ 233

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List of Abbreviations

BT Budget Tracking

CBO Community-Based Organization

CFP Call for Proposals

CPV Check Payment Voucher

CRC Citizens’ Report Cards

CSC Community Score Card

CSO Civil Society Organization

CSP Charities and Societies Proclamation

DfID Department for International Development

ESAP Ethiopia Social Accountability Program

ESAP2 Ethiopia Social Accountability Program 2

EU European Union

FCA Financial Capacity Assessment

FTA Financial Transparency and Accountability

GoE Government of Ethiopia

MA Management Agency

MDTF Multi-Donor Trust Fund

M&E Monitoring and Evaluation

MoU Memorandum of Understanding

OFAG Office of the Federal Auditor General

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PB Participatory Budgeting

PBS Ethiopia Protection of Basic Services

PET Public Expenditure Tracking

SA Social Accountability

SAC Social Accountability Council

SAIP Social Accountability Implementing Partner

SNNPRS Southern Nations Nationalities and Peoples Regional State

SOE Statement of Expenditures

WB World Bank

SAIP OM: Introduction and Purpose of the Manual

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1. Introduction and Purpose of the Manual

In an effort to reduce poverty and enhance decentralized public service delivery to the poor,

the Government of Ethiopia (GoE), with the support of International Development Partners,

embarked on the Ethiopia Protection of Basic Services (PBS) project. PBS supports

Ethiopia’s progress towards the Millennium Development Goals and helps improve broad

based economic growth, governance and basic public service delivery.

The Ethiopia Social Accountability Program 2 (ESAP2) is part of PBS and seeks to improve

basic public service delivery by local governments. It aims to strengthen the use of social

accountability tools, approaches and mechanisms by citizens and citizen groups, civil society

organizations, local government officials and service providers as a means to make basic

service delivery more equitable, effective, efficient, responsive and accountable.

ESAP2 includes a grant scheme as a funding mechanism for social accountability initiatives

in Ethiopia. With funding from the scheme, grant projects can be implemented, which seek

to give voice to the needs, priorities and concerns of all citizens on their access to and quality

of basic public services in the areas of education, health, water and sanitation, agriculture

and rural roads – the sectors supported through PBS.

This Operational Manual is developed to guide Social Accountability Implementing Partners

(SAIPs) in their application for and implementation of an ESAP2 grant. The Operational

Manual contains a detailed description of all the rules and regulations that are applicable to

the grant scheme, its Call for Proposals and the actual implementation of a grant project. It

presents the application, evaluation and contracting of an ESAP2 grant project in chapter 2

and discusses the general requirements for implementation of and reporting on a grant

project in chapter 3. Chapter 4 is dedicated to the principles of proper financial management

and procurement by which the contracted organizations (SAIPs) need to abide. Chapter 5 is

set up according to the principle of FAQs (Frequently Asked Questions) and will provide the

SAIPs with answers to their most frequent and pressing questions on the implementation

and reimbursement of their ESAP2 grant project costs. Lastly, all standard formats which are

required to be used in the different phases of the ESAP2 grant scheme are annexed to this

Manual.

The Operational Manual is thus a guide for understanding what is expected from SAIPs and

what SAIPs can expect from the ESAP2 Management Agency (MA) to ensure there will be

equal and fair participation and a smooth and successful implementation.


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1.1 Protection of Basic Services Social Accountability Program (PBS-ESAP)

1.1.1 Background

At the beginning of the Millennium, Ethiopia’s human development indicators were amongst

the very lowest in the world. In an effort to reduce poverty and enhance decentralized public

service delivery to the poor, the GoE, with the support of International Development

Partners, embarked on the Ethiopia PBS project in 2006. PBS supports Ethiopia’s progress

towards the Millennium Development Goals and helps to improve broad based economic

growth, governance and basic public service delivery. The objective of PBS is to contribute to

expanding access and improving the quality of basic services in education, health,

agriculture, water supply and sanitation, and rural roads delivered by sub-national

governments, while continuing to deepen transparency and local accountability in service

delivery. The PBS program is owned by the GoE, is financed in large part by government

resources, and is implemented by using the country systems, while strengthening capacity

for improved public financial management and accountability.

PBS strives to strengthen and deepen financial transparency and accountability and Social

Accountability (SA) initiatives. The objectives are to work further towards enhancement of

transparency around public budgeting and monitoring procedures (planning, budget

preparation, expenditures and audits, performance monitoring), and to enhance and scale

up activities to engage civil society, citizens and citizen representative groups on basic

services planning, budgeting, implementation, and monitoring to ensure that public basic

service delivery reflects citizens’ needs and preferences.

PBS’ Social Accountability component is closely linked with the PBS component on Financial

Transparency and Accountability (FTA) and PBS aims to strengthen the cooperation

between the two components further going forward. The FTA component is implemented by

the Ministry of Finance and Economic Development through its decentralized system. It

supports the “supply side” of citizen’s engagement and promotes information and

communication activities with citizens on expected service standards, budgets and budget

use, and public education on budget processes. Under PBS 3, the objective of the FTA

component is to deepen citizens’ access to budget, expenditure and service delivery

information and thereby enhance the participation of citizens in the planning and budget

preparation processes. It aims to deepen engagement of citizens and citizen representative

groups in public planning, budget processes and public service delivery at the local level, and

will include support of local level discussion forums during and after budget formulation to

strengthen the participation in the local planning and budgeting processes.

The GoE is fully committed to the effective implementation of PBS, including the SA

initiatives. With respect to the Charities and Societies Proclamation (CSP), the Ministry of

Finance and Economic Development has assured that CSP will not impede the smooth

implementation of the SA activities of PBS. The approach to the delivery of the SA of the

Grant Scheme will continue the citizens’ engagement partnership framework already

established under the pilot phase. This framework specifies the roles, relationships, and

functions, and clarifies that SA for service delivery is about the efficiency and effectiveness of

service delivery and as such it is not an activity that will be impeded by the CSP. Moreover,


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PBS funding of SA activities is considered as resources provided to the GoE to finance a

government program. The GoEis committed to the principles specified in the framework for

implementation of the Ethiopia Social Accountability Program that citizens and their

organizations are the ones who engage with the service providers while local NGOs and

others participate as facilitators and in capacity building.

1.1.2 Objectives of ESAP2

The Ethiopia Social Accountability Program 2 (ESAP2) is part of PBS and seeks to improve

basic public service delivery by local governments by helping to make services better attuned

to the needs and priorities of citizens. The overall objective of ESAP2 is to strengthen the use

of SA tools, approaches and mechanisms by citizens and citizen groups, civil society

organizations, local government officials and service providers as a means to make basic

service delivery more equitable, effective, efficient, responsive and accountable. It targets

both men and women, including those living with HIV/Aids and/or disabilities.

ESAP2 is the logical follow-up of the pilot project ‘Ethiopia Social Accountability Project’

(ESAP1) that was implemented from January 2008 until June 2009. The purpose of the

second phase is to scale-up the SA activities. Considering the lessons learnt during the first

phase, ESAP2 will expand its coverage, put more emphasis on building capacity, on

mainstreaming socially excluded groups, and on institutionalization and strengthening of

monitoring and evaluation system.

ESAP2 as such seeks to give voice to the needs and concerns of all citizens regarding their

access to and the quality of basic public services – basic education, health, water and

sanitation, agricultural and rural roads. Through Social Accountability Implementing

Partners (SAIPs), the program seeks to bring citizens into dialogue with local governments

and service providers to contribute to and increase the demand for improved quality public

basic services. ESAP2 will make use of a range of tools, mechanisms and best practices to

build and enhance local capacity on SA in support of the GoE’s wider efforts to improve

transparency, accountability and citizens’ participation in public basic services delivery.

Service users and service providers will evaluate the access and quality of basic services using

SA tools and agree on joint actions for service delivery improvements.

Through grant projects, SAIPs will provide intensive training for selected community

representatives, citizen groups, and local government officials on SA principles, service

standards and on selected SA tools to evaluate service delivery performance, and facilitate

and support the use of the tools in selected woredas and kebeles.


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At the end of ESAP2, the program will have resulted in:

The above-mentioned objectives are to be achieved by implementing activities of the three

external components of which ESAP2 exists: Capacity Development and Training (see also

section 3.2), Monitoring and Evaluation (see also section 3.3.3) and, of course, the Grant

Scheme.

ESAP2 is financed by a Multi Donor Trust Fund (MDTF) involving development partners

through the World Bank. Currently, the development partners are Irish Aid, Department for

International Development (UK-DFID),Kreditanstalt für Wiederaufbau (Germany-KFW)

and the European Commission.

1.1.3 ESAP2 Grant Scheme and Budget

The grant scheme of ESAP2 is a vehicle for achieving the objectives of the program through

financial, technical and capacity development support to grantees (SAIPs). The grant scheme

of ESAP2 provides a funding opportunity to CSOs to develop and implement SA initiatives in

Ethiopia. Funds are allocated to projects that contribute to the objectives of ESAP2 and thus

seek to enhance citizens’ dialogue with local governments and service providers to contribute

to and increase the demand for improved quality services in the areas of education, health,

water and sanitation, agriculture and rural roads.

The total Grant Scheme Budget for the first round of the Call for Proposals (CFP) started at

$3,5 million but is expected to grow to $10 million by November 2012. Applicants can

submit a grant proposal with a maximum budget of $ 237,000 (when targeting 3 woredas),

$269,000 (when targeting 4 woredas) or $300,000 (when targeting 5 woredas).

The MDTF will make additional amounts available for this grant scheme. The total grant

budget is foreseen at $13 million with, in that case, approximately 45-55projects. As the

additional funding is expected to be released in due time, the next best applications under

the current CFP will be considered for funding, until the total budget expires. For details on

the exact award procedure of the current funds and the expected additional funds, see

section 2.5. In any circumstance, the MA reserves the right not to award all available funds.

Increased awareness of citizens and citizen groups of their rights, entitlements and

responsibilities to contribute to and demand better quality public basic service delivery;

Increased empowerment and involvement of citizens and citizen groups and

communities in planning, budgeting, and implementation and monitoring of the quality

of, access to and quantity of basic public service delivery;

Increased capacity of SAIPs to empower citizens and citizen groups on use of SA tools,

approaches and mechanisms;

Increased capacity of public basic service providers to respond to community and

citizens’ needs and preferences and be accountable;

Improved quality of basic services in education, health, agriculture, water and sanitation,

and rural roads attributed to the SA program.


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1.2 Social Accountability

ESAP2 and thus its grant scheme focuses on Social Accountability (SA). SA is an approach in

which citizens collectively demand for better public basic services from service providers,

and hold service providers accountable for their performance. SA is used as a mechanism to

inform and educate citizens of their constitutional rights, and responsibilities. It is also used

as a means to inform citizens about their public basic service entitlements and service

standards and engage communities with public officials and service providers to demand

more and better quality public basic services. SA is thus a principle of good governance that

relies on citizens’ engagement. ESAP2 seeks to build this engagement by using a range of

instruments and tools, such as participatory budgeting, monitoring of public service delivery,

and citizens’ report cards.

1.2.1 Social Accountability Tools

The basic SA tools that promote and foster effective, efficient, equitable and quality basic

service delivery are Participatory Budgeting, Public Expenditure Tracking, Citizens’ Report

Cards and Community Score Card. SAIPs should have an understanding of what these tools

are about and how to effectively make use of them in achieving the objectives of their grant

project and thus, eventually of ESAP2.

Ultimately, the effectiveness and sustainability of SA tools are improved when they are

“institutionalized” – that is, when the government has incorporated the use of these tools

into its practices and when the state’s own mechanisms of accountability are rendered more

transparent and open to citizens’ engagement. It is also improved when citizen groups and

community based organization and membership-based organizations actively and routinely

use SA mechanisms and tools to assess service providers’ performance, advocate and

Grant Scheme Budget at a glance

Total Grant Scheme Budget at the start of CFP1 $3,5 million

Total Grant Scheme Budget expected November 2012 $8,5 million

Foreseen Total Grant Scheme Budget $13 million

Maximum Budget Grant Application targeting 3 woredas $237,000



Number of SAIPs expected to be engaged after the November

2012 increase of the MDTF 29-30

Tentative number of SAIPs to be engaged based on total

foreseen grant budget 45-57


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negotiate for change, and participate in basic services planning and delivery.

By using the tools in the grant projects, capacity is built and lessons are generated by both

the Ethiopian civil society and the government sector.

A brief description of the four frequently used SA tools is given below. All tools have been

used in grant projects implemented under ESAP1. More information on the tools and how

they were applied in the ESAP1 grant projects can be found on the following sites:

1.2.2 Participatory Budgeting (PB)

The process of PB involves stakeholders and/or independent individuals, such as citizens

and citizen groups, in the formulation of the basic services budget. Through their

involvement, they can influence the amount and priorities of budgets allocated to basic

services delivery. In the process, stakeholders examine and assess public budgets in relation

to policy, preparation processes, implementation and outputs. This implies information

sharing, focus groups consultations, and collaborative discussions among different groups

and in the end, citizen contributions to governments’ decision-making. If deemed necessary,

civil society actors prepare alternative budgets aiming at influencing budget formulation by

expressing their preferences for budget allocations. PB usually occurs at the local level but

can be applied at higher levels of government.

1.2.3 Public Expenditure Tracking (PET)

PET surveys the flow of resources (human, financial, in-kind) through various levels of

government to observe how much of the originally allocated public resources reach each

level. Citizen groups can thus track how the local government actually spends funds, with the

aim of identifying leakages and/or bottlenecks in the flow of financial resources or inputs.

PET can track funds for basic services, such as funds for textbooks in primary education and

funds for medication in health clinics. It can stimulate reforms through access to relevant

information and reviewing priorities through interface meetings of government

representatives and community members. Information is disseminated through media,

publications and public meetings.

http://capacity4dev.ec.europa.eu/document/piloting-social-accountability-ethiopia

www.esap2.org.et

http://capacity4dev.ec.europa.eu/document/piloting-social-accountability-ethiopia

http://www.esap2.org.et/


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1.2.4 Citizens’ Report Cards (CRC)

The CRC process involves gathering and disseminating citizen feedback on the access and

quality of services to facilitate improvements in service delivery. The CRC is designed for a

single locality and can be used in both rural and urban areas. CRC’s are surveys that compile

service users’ opinions on their satisfaction with service delivery, availability, usage, quality

and equity. A key component is interface meetings where citizens can engage with

government officials to address their concerns regarding service delivery, quality or equity

and jointly agree on a reform agenda and an action plan to be monitored by both sides.

1.2.5 Community Score Card (CSC)

A CSC is a tool where community members evaluate their access to basic services and the

quality of services they receive. It is a participatory tool for assessing, planning, monitoring

and evaluating basic services. In focus group discussions, community members develop

indicators to evaluate the services they receive. At the same time, the service providers also

assess in their focus group their performance in delivering services according to indicators.

Access, quality and equity of basic service delivery are indicators used for evaluating

performance. In interface meetings, service providers and service receivers present the

results of their assessments, and discuss and analyze discrepancies found. Jointly, a reform

agenda will be prepared with a plan of action to improve the services by all stakeholders. All

stakeholders jointly steer and monitor the implementation of the action plan.

1.3 Sectors

The ESAP2 Grant Scheme addresses five service sectors, namely education, health, water

and sanitation, agriculture and rural roads. The latter sector is new to the program, as it has

not been targeted in ESAP1. Applicants should demonstrate capacity and resources to

operate their SA activities in at least two or more of these five sectors. Prospective grantees

(SAIPs) are strongly encouraged to cover the performance of the sector as a whole in the

kebele / woreda, not only engage with individual service facilities (such as individual schools

or health centers). Below, we shortly sketch the sectors and provide examples on the

challenges that exist in each sector’s service delivery.

1.3.1 Education

According to the previous ESAP1 experiences, the quality, relevance and equity of education

have become a concern to citizens and citizen groups in Ethiopia. Examples of problems

identified by the community in the education sector consist of insufficient number of

teachers, unavailability of basic educational inputs and materials, unavailability of school

facilities, and poor school and community relationships.

Through engaging citizens and citizen groups in the locality with proper use and application

of SA tools, implementing partners can create a conducive environment for dialogue between

the local government (service providers) and the community (service users). This will help

identify the basic education service delivery problems and enhances better service delivery

through lobbying with the community. In ESAP2, the woreda administration can be involved

in making the standards for education in their locality available, providing support in


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mobilizing the school community, designing and agreeing on action plan preparation based

on the findings of the assessment by the community.

1.3.2 Health

The health service sector at woreda level is expected to provide basic health services to

mothers and children. In addition, a woreda health center makes provision of basic health

services that help to prevent communicable diseases, provide basic medications and provide

basic health package services. A woreda administration has a role to monitor the basic health

services delivered to citizens in the locality.

The most common problems in health services that were identified in ESAP1 are

unavailability of health professionals, shortage of basic drugs and health services,

unavailability of sufficient and quality health equipment and facilities. Implementing

partners through involving the community and with appropriate application of SA tools can

increase citizens’ knowledge of the government’s policies regarding the government basic

health service planning, budgeting and delivery. With proper application and use of the SA

tools, the community will also be empowered to lobby for better health services through

understanding of their rights. The SA tools will help identify health service gaps in a more

systematic manner.

1.3.3 Water and Sanitation

Typical problems of the water and sanitation service in any woreda of the country as assessed

in ESAP1 are inadequate budget allocation for the sector, poor accessibility, availability and

quality of water supply and inadequate maintenance of the water supply, etc. In some cases,

despite there is somehow sufficient infrastructure for the water supply, there is a poor

management system of the water supply due to limited communication between the service

providers and service users.

SAIPs can enhance awareness of all relevant stakeholders on the water service delivery

problems. The SAIPs can also help the community to contribute to improving water service

delivery by engaging them to play an active role, indicate their needs and wishes to jointly

improve the service.

1.3.4 Agriculture

Woredas are involved in agricultural services as they deal with the community (farmers) to

enhance better productions. Through liaising with the zonal and regional governments, the

agricultural office of the respective woreda administration follows up the supply of

agricultural inputs (like fertilizers, seeds) and for example the assignment of agricultural

extension workers. In the agricultural sector, the effective use of SA tools can bring results in

the field of supply of agricultural inputs (for example fertilizers and seeds), prevention of

illegal deforestation, increased conservation and the use of modern agricultural inputs. All

this can be achieved by a positive contribution of both communities as well as service

providers to a cooperative relationship.


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1.3.5 Rural Roads

The service sector of rural roads is new to ESAP2. In most woredas of the country,

inaccessibility, poor quality and poor maintenance of rural roads are common problems, in

which SA initiatives can play a role for improvement. The CSOs through working together

with the respective woreda officials, can mobilize the community, while woreda

administrations provide baseline data to the regional government on accessibility, service

level and demand of the rural roads service sector in the locality.


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2. Application for anESAP2 Grant

2.1 Eligibility

2.1.1 Eligibility of the Applicants: Who Can Apply?

The ESAP2 Grant Scheme is only open to Ethiopian Charities or Societies and Ethiopian

Residents Charities established for not for profit motives, such as regional development

organizations, civil society organizations and faith-based organizations. The organization

that requests funding needs to be registered with a legal license with the GoE and

documentary proof of the registration needs to be provided with the application.

Applicants can submit a proposal for this Call for Proposal (CFP) either individually or in a

partnership with other organizations. Partnerships cannot exist of more than four

organizations (one lead organization and three partners). Besides, each and every partner

must be legally registered with the GoE. A partner cannot take part in more than one

application, irrespective of the exact position of the organization in the application (lead

partner or sub partner). In case a partner still submits more applications, all applications in

which this partner participates will be rejected. Applications submitted by a partnership of

organizations must attach a signed Partnership Statement to the proposal in line with annex

E.

2.1.2 Eligibility of Applications: What Do You Need to Address?

The ESAP2 Grant Scheme will have to comply with the general notions of the program.

Eligible projects must contribute to the realization of the overall objective of ESAP2

(see also section 1.1.2). Hence, each grant application is expected to present a project

proposal that would contribute to the better use of SA tools, approaches and mechanisms by

(a) citizens and citizen groups, (b) civil society organizations, (c) local government officials

and (d) service providers as a means to make basic service delivery more equitable, effective,

efficient, responsive and accountable.

As indicated in section 1.3, grant applications submitted under this CFP need to address SA

in at least two of the five service sectors: education, health, water and sanitation,

agriculture and rural roads. Grant applications that focus their SA activities on other sectors

than those 5 are not eligible. Grant applications should apply SA instruments in the sectors.

The proposed projects should aim to cover the selected sectors in their entirety in the

targeted woredas and/or kebeles, and avoid to engage only with individual service facilities

(such as schools or health posts).

The grant application’s target group needs to be at woreda level (in Dire Dawa City

Administration, this can be kebele or cluster level). Each application needs to target a

minimum of 3 woredas and a maximum of 5 woredas. Per woreda, a minimum of 3 kebeles

needs to be targeted.


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2.1.3 Eligibility of Costs: What Can Be Covered?

The ESAP2 Grant Scheme uses basic principles and cost categories for eligibility of costs to

help applicants to prepare a solid budget and to set grounds for good financial management

of the grant projects. Grants requested under this CFP have a maximum of $237,000 (when

targeting 3 woredas), $269,000 (when targeting 4 woredas) or $300,000 (when targeting 5

woredas).

The budget needs to be built on the eligibility principles of fairness, reasonableness and

related to the proposed project’s activities only. This implies that the budget submitted with

the application should consist of budget lines with proposed expenditures to be reimbursed

from the grant’s funding, according to these principles. Expenditures will only be considered

as eligible when:

It is up to the discretion of the applicants to ensure its proposed costs are in line with the

applicable government directives, including those under the Ethiopian Charities and

Societies Proclamation. All contracted SAIPs must fulfill their tax obligations as per the Tax

Proclamation 286/2002 and the MA will not take any responsibility with regard to SAIPs’

tax obligations.

Applicants are encouraged to direct as much funding as is reasonable and realistic to

program activity costs. Below are indicated several costs categories that are, in principle,

eligible and can thus be included in the grant budget. The final decision regarding the

eligibility of costs incurred by the grant beneficiaries will only be determined upon review of

the submitted financial reports, relevant records and supporting documents (see section 3.3

and section 5.3 on how reimbursement for specific costs such as salaries takes place).

The costs are incurred during the project’s lifetime; with the exception of the

auditor’s costs for the last Audit Report;

The costs are indicated in the total estimated budget for the project, which is an

integral part of the grant agreement;

The costs are necessary for the implementation of the project which is the

objective of the grant;

The costs are identifiable and verifiable, meaning that when they are incurred by the

SAIP, they can be recorded in the organization’s accounting system and can be

supported by original documents;

The expenditures comply with the requirements of applicable tax and social

legislation;

The costs are reasonable (fair market price), justifiable and comply with the

requirements of sound procurement practice (please see section 4.2 for procurement

guidelines).


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Without derogating to the above principles, eligible costs may include the following:

Direct eligible cost categories:

Indirect eligible cost categories:

Salary: full and part time staff cost who contribute their time for the project

implementation;

Consultancy fee: costs for the work done by a consultant or expert specifically hired for

the project on short term basis to carry out tasks on demand basis only;

Travel costs and subsistence: for staff, consultant and workshop/training

participants who take part in the project implementation;

Workshops/Trainings costs: this includes costs for venue, refreshment, stationeries,

etc;

Material production cost: costs incurred for the production and reproduction of

materials for the purpose of the project;

Capital Asset: costs for the purchase of fixed assets such as office furniture, equipment,

motor-cycles, etc., specifically for the purposes of the grant project;

Auditor’s costs: costs for the auditor for the preparation of the Audit Reports on the

grant project’s finances. Each grant applicant is obliged to include this item in the

budget.

Direct operational costs:such as transport costs, vehicle running costs, office rental

and running costs, provided these are reasonable, relative to the project’s proportion and

can be clearly linked to the project in question.

Contingency reserve:not exceeding 5% of the estimated direct eligible costs. Actual

spending is subject to prior writtenauthorization of the MA.

Overhead: a flat-rate funding applies of 7% of the actual total eligible direct costs to

cover for overhead expenses. The flat rate is intended to cover running costs which are

not included anywhere else in the budget. The applicant may be asked to justify the

requested percentage before contracting. However, once the flat-rate has been fixed in

the special conditions of the standard grant agreement, no supporting documents need to

be provided.


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The following costs are ineligible and will as such not be accepted in grant application

budgets nor will they be reimbursed if incurred by the project:

Upon evaluation and review of the application, the MA reserves the right to ask for

justification on entries in the budget, request amendments or corrections, so as to reach a

final accepted version of the budget to be included as an annex to the grant agreement (see

also section 2.5.4). Each grant budget will be assessed according to the above-mentioned

criteria and guidelines. The budget should be prepared following the format provided in

annex D.

2.2 Period of Grant Implementation

Grants which will be awarded to SAIPs can only be used for the implementation of their

grant application. All applications need to be designed for an implementation period of a

maximum of 24 months, with an expected earliest starting date of 1 September 2012 and a

latest possible end date of 31 August 2014. The project design, objectives, project results and

activities need to be designed to fit this predefined period of implementation.

As indicated in section 1.1.3, the current CFP is used as a selection mechanism for the

current available budget, as well as the expected additional budget envelope. Upon receipt of

the additional budget envelope, the MA will consider the appropriate period of grant

implementation that can apply.

Salary top up: any salary top up for the staff, who are currently working with the organization;

Honorarium: any honorarium for the staff of the organization;

Internal consulting: any fee paid to consulting service rendered by the grant organization’s own staff;

Loan charge: the loan given for any party and related costs such as interest;

Penalty: any kind of penalty or fine incurred by the organization;

Legal cost: any legal fee in relation to any litigation by the organization;

Redundancy payment: any redundancy payment other than what is indicated in the staffing cost;

Bad debt: any charge as bad debt expense whether it relates to the project or not;

Gift: gift or present given for anybody under any circumstance;

Provision of future liability: any reserve to cover future liabilities;

Costs related to the preparation and submission of the grant application under this Call for Proposals, including costs such as information gathering, staff time and travel;

Purchase of land or buildings;

Purchase of second hand equipment;

Purchase of cars (new or second-hand);

Any cost not related to the project.


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2.3 Application Submission

The closing date for project applications under this CFP is Friday 22June 2012, 6.00p.m.

local time. Applications need to be typed in English, preferably single-spaced with an 11

point Arial font, A4 size. Hand-written applications are not accepted.

A complete application consists of:

Annex G provides you with a checklist with which you can verify whether your application is

complete. Please use this list to avoid your application being rejected for reasons of

incompleteness. An authorized representative must sign the original copy with an original

signature. Only the full application forms, required annexes and documentary proof will be

transmitted to the evaluators and assessors. Other documents, which are presented in the

package (such as brochures, leaflets, materials previously developed) will be separated from

the application package and will not be taken into account during evaluation. It is therefore

of utmost importance to apply through the required documents and include all relevant

information concerning your application in the application package.

All applications submitted will be registered according to date and time of receipt. A

confirmation of receipt of your application will be provided in hard copy (when hand

delivered) or mail (when delivered by registered mail).

3 fully completed ESAP2 Grant Application Forms and all required annexes (1 original

and two copies), and

A USB or CD-rom containing all documents presented under 1) in electronic form.

Application Submission at a Glance

Preferred Font Arial, 11 point, single-spaced

Language English

Number of hard copies to submit 3 (1 original, 2 copies)

Number of electronic versions to submit 1 (USB or CD-rom)

Deadline for submission of applications 22June 2012, 6:00 p.m. local time

Submission address

(by recorded post-delivery, hand delivery

or private courier service, directly to MA):

ESAP2 Management Agency

Cape Verde Street

P. O. Box 28024/1000

WMA Sets Building, 2nd Floor

Addis Ababa, Ethiopia


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2.4 Request for Clarifications

The Operational Manual should be clear enough to avoid potential applicants from having to

request additional information during the CFP. During the course of receiving applications,

the MA may conclude that additional information must be provided to clarify or modify

aspects of the CFP. This need for adjustment or clarification can result from official requests

for clarifications received by potential applicants, but also from omissions observed in the

Manual by the MA itself.

All potential applicants have an equal opportunity to raise their concerns and questions on

the grant scheme and its concurrent procedures and guidelines with the MA. Requests for

clarification or explanation can be sent in English writing (e-mail or hardcopy letter) to the

MA at the address indicated below. All requests for clarifications need to be submitted on 8

June 2012 latest. To ensure that all potential applicants have equal access to the additional

information provided through the request for clarification procedure, all questions and

answers will be published anonymously on the ESAP2 website (www.esap2.org.et)no later

than 15June 2012. All potential applicants are highly recommended to regularly consult the

abovementioned website in order to have read any additional information provided on the

CFP and the questions and answers published. In the interest of equal treatment of

applicants, the MA will only reply to requests which deal with the procedures and guidelines

of the CFP.

The MA will not provide any information or response on the eligibility of an applicant, the

suitability of a project application or budget or any other information that puts the applicant

in an advantaged position in comparison to other potential applicants. After 15 June 2012,

the MA has no obligation to provide further clarifications.

Requests for Clarifications at a glance

Deadline for requests for

clarification or explanation 8 June 2012

Language of request English

Method and address for

submission

Hard copy letter, e-mail or fax to ESAP2 Grants

Manager at:


P.O. Box 28024 / 1000

Cape Verde Street, WMA Sets Building, 2nd Floor

Addis Abeba, Ethiopia

Fax: +251 (0)11 663 2567/E-mail: [email protected]

Publication of MAs answers to

the requests for clarification on

www.esap2.org.et

15 June 2012


mailto:[email protected]



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2.5 Evaluation, Selection and Contracting of Applications

The evaluation and selection of applications will start after the CFP has closed. The

evaluation process is divided into three phases:

1) Evaluation of eligibility and administrative criteria(see section2.5.1)

2) Evaluation of the quality of the grant application and applicant (see section 2.5.2)

3) Financial Capacity Assessment (see section 2.5.3.1)

2.5.1 Evaluation of Eligibility and Administrative Criteria

The first phase of evaluating the compliance with the eligibility and the administrative

criteria entails certain rules of procedures and standards. The eligibility and administrative

criteria determine the conditions for participating in this CFP. The MA will perform the

evaluation, as it is not score-based. The process entails a verification of pre-defined objective

criteria, which are presented in annexG. Only applications that meet the eligibility and

administrative requirements will be presented to the assessors for the second evaluation

phase, the assessment of the quality of the application. Failure to meet the administrative

and eligibility criteria thus immediately results in a rejection of the application, without

assessment of its quality. All applicants are therefore encouraged to check carefully, before

submitting their application, whether all criteria set in annex G are met.

The following eligibility criteria apply:

The applicant is a legal entity established for not for profit motives and is registered with

the GoE as an Ethiopian Charity or Society or Ethiopian Residents Charity (and

documentary proof of this is provided);

(If applicable) All partners in the application are legal entities established for not for

profit motives and are registered with the GoE as Ethiopian Charities or Societies or

Ethiopian Residents Charities (and documentary proof of this is provided);

The grant application targets at least two sectors;

The grant application targets 3-5 woredas;

Per woreda, the grant application targets at least 3 kebeles;

The grant application budget does not exceed the indicated maximum amount of

$237,000 for applications targeting 3 woredas, of $269,000 for applications targeting 4

woredas or $300,000 for applications targeting 5 woredas.


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The following administrative criteria apply:

2.5.2 Evaluation of the Quality of the Grant Application and Applicant

Applications that have met the eligibility and administrative criteria will move on to the

second phase of evaluation. To avoid any conflict of interest, a team of independent assessors

will perform the second phase of evaluation of the quality of the proposal. Two assessors will

assess every application. Scores will be awarded on the predefined evaluation criteria

presented in the Grant Application Evaluation Grid in annexH.

The Grant Application Evaluation Grid provides for a standardized rating system per pre-

defined variables with a total maximum score of100.The grid includes as many as objective

criteria possible to ensure a fair and transparent selection of applications. Applications are

required to attain at least 50% of the scores on organizational capacity and on relevance (see

also annex H).

The mean score awarded by the two assessors will be the final score of the application. In

case the scores of the two assessors vary considerably (approximately 15% variation), a third

assessor will be assigned to assess the application at hand. The third assessor’s score will be

used to establish the deviant scoring. In case a third assessor has been assigned, the score

most deviant from the other two scores (be it lower or higher), will be disregarded and not

used to establish the mean of two scores. In case the deviation between the three scores is the

same, the middle score is used as the final score of the application. A sufficient number of

assessors will be assigned to ensure a smooth and efficient process.

The quality of the applications is assessed, based on four main categories:

1. Organizational Capacity

1.1 Operational Capacity

1.2 Financial Capacity

1.3 Expertise and Experience

2. Quality of the Application

2.1 Quality of the Project Design

The application is in English;

The application is typed;

The application is received by the MA before the closing date and time of this CFP (see

also section 2.3);

The application submitted is complete and in the formats annex to this Operational

Manual;

The application submitted consists of one original and two copies of the complete

application, as well as one electronic copy on a CD or USB stick.


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2.2 Relevance

2.3 Feasibility

2.4 Impact

2.5 Sustainability

3. Logical Framework

4. Budget

Below, we shortly discuss the categories and we explain the relevance of each criterion.

Applicants are advised to give particular attention to the evaluation criteria and the

Evaluation Grid of annex H. Specifically addressing in your application how the questions

posed in these sections and annex will be dealt with, increases the chance of a positive

evaluation and thus of being selected.

2.5.2.1 Organizational Capacity

In assessing the applications, focus will not be restricted to the content of the grant

application. In addition, the capacity of the applicants will also be assessed.

As the SAIPs will be implementing the activities, their management and technical capacity to

do so, needs to be evaluated. The MA is interested in evidence that the applicant has the

adequate capacity to implement the proposed activity and a grant provided will be efficiently

used. In addition, the MA wants to know whether the lead applicant, being the future

signatory of the grant agreement with the MA, has the capacity to manage and administrate

the grant financially as well. The lead applicant will namely be fully responsible for

(financial) management of the grant towards the MA.

The SAIPs’ capacity is evaluated in three sub-categories, being the Operational Capacity of

the lead applicant, the Financial Capacity of the lead applicant, and the joint Experience and

Expertise in implementing comparable projects and activities.

Please note that in order for the application to be included on the final ranking list, and thus

be considered for contracting, the application needs to be awarded with at least 50% of the

maximum scores on Organizational Capacity and of the maximum score on Relevance (see

2.5.2.2.2). In case a grant application is excellently written, but not relevant to ESAP2, the

applicant will not be awarded with an agreement, nor will an applicant which is assessed as

organizational incapable.

2.5.2.1.1 Operational Capacity

Operational Capacity is the ability of the organization to perform its key organizational and

programmatic functions. Simply stated, it is about having the right people, skills, resources,

and approach in place to implement the grant application. In this perspective, the quality of

the applying SAIPs is assessed on issues such as technical expertise, service delivery skills,

monitoring and evaluation strategies, and for example outreach approach. In the application,

applicants are requested to highlight their available resources, skills, systems and

approaches needed and available to implement and deliver on the proposed grant project. As


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the MA will conclude the agreement with the lead applicant, the evaluation of this variable

will mainly be built on the lead applicant’s capacity and will cover issues such as (but not

limited to):

2.5.2.1.2 Financial Capacity

Financial capacity represents available organizational resources and relationships – both

internal and external – that enable the applicant(s) to pursue its/their missions and fulfil

their roles. It is defined, on the one hand, by the ability to generate and administer funds,

and on the other hand, by the instruments and mechanisms that structure the relationship

between the organization and funder. The mix of types and sources of funding is as

important as the level of funding to an organization’s capacity to pursue its work effectively,

efficiently and sustainably. The lead applicant is evaluated on its financial capacity,

considering issues such as (and not limited to):

The extent to which the lead applicant has demonstrated acceptable record keeping.

(Note that this will be further checked during the Financial Capacity Assessment, in case

the grant application is shortlisted for contracting, see section 2.5.3).

The extent to which the lead applicant has project and financial management capacity

and experience in managing related projects with other donors;

The extent to which the lead applicant fulfils minimum staff requirements, which ensure

the existence and execution of accounting procedures and proper financial management.

(Note that this, in case of short listing, will be further checked during the Financial

Capacity Assessment, see section 2.5.3)

What is the organizational structure and what roles and responsibilities does this

structure have? Are community members and leaders included?

What is the objective of the organization and what are its core areas of expertise?

What are the relevant skills of the staff to operate in the field of SAin the ESAP2 sectors?

What networks does the organization belong to?

The extent to which the organization is embedded in the Ethiopian society? What

partners, donors, community organizations, citizens associations and local governments

does the organization work with?

To what extent are crosscutting issues, such as gender and social inclusion reflected in

the organizations’ management structure and strategies?

(if applicable) To what extent is the partnership strategy expected to support the

successful implementation of the grant application? Is capacity building within the

partnership foreseen?


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2.5.2.1.3 Expertise and Experience

Proven experience in implementing comparable projects and activities is important as it

heightens the chances of a successful implementation of the current grant application. The

evaluators will assess the extent to which the applicant(s) have previous experiences that are

relevant for the implementation of this grant project. The evaluation will take issues into

account, such as:

2.5.2.2 Quality of Application

The proposal should present a technically sound approach to addressing issues or needs

relevant to the SA program in a realistic manner. The grant application’s approach should

also be evaluated in terms of appropriateness in the cultural context and geographic area.

The evaluation of the Quality of the Application is divided in five sub-categories: Quality of

the Project Design, Relevance, Feasibility, Impact and Sustainability.

2.5.2.2.1 Quality of the Project Design

Designing a good project is easier said than done. A successful project is the result not only

of the accuracy of a technical solution, but also of the acceptance by all the parties involved of

the need for, and the approach to implementing the project.

A good project design entails therefore a tailored project approach towards realistic and

measurable goals, tasks, outputs and outcomes. It is driven by a sound project cycle

management and requires continuous monitoring and evaluation (M&E) as to achieve

desired results.

In this respect, the applicant will be evaluated on the proposed project design and is asked to

describe the project strategy, M&E and the resourcing, with specific reference to goals, tasks,

outputs and outcomes set. The design should ensure that interventions are ethically sound,

technically up-to-date, relevant to the program setting, and acceptable to or endorsed by the

beneficiary populations, paying sufficient attention to social inclusion of vulnerable groups.

The extent to which the applicant(s) has/have a track record with other donor

organizations on management of similar size projects/activities and/or relevant sectors

and have achieved tangible results;

The extent to which the applicant(s) has/have a track record or previously worked in the

proposed woredas.


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The assessment of the grant application will take issues into account, such as:

2.5.2.2.2 Relevance

The relevance of the grant application is linked to the question whether the grant application

and the proposed interventions are consistent with the beneficiaries' requirements, needs,

priorities and partners' and ESAP2 requirements and policies. The question of relevance

often becomes a question as to whether the objectives of the proposed intervention or its

design are appropriate against given circumstances. For ESAP2, relevance of the grant

application deals with issues such as:

To what extent is a clear project strategy (or strategies) part of the project intervention?

To what extent is a specific strategy on addressing and including socially excluded groups

like women, children, people living with HIV and Aids, people with disabilities, and the

elderly included in the grant application?

To what extent have stakeholders participated in both the design and implementation of

the grant application?

To what extent is the project goal clearly formulated? Does it address the core problem

and express the impact the project will have on the beneficiaries?

To what extent are the roles of the beneficiaries clearly demonstrated in the application?

To what extent are the results realistic?

To what extent are the indicators measurable?

To what extent have external factors and risks been identified that can affect the

implementation of the application? Are appropriate measures proposed?

To what extent is M&E of the grant project’s progress been adequately resourced?


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2.5.2.2.3 Feasibility

The application will be evaluated on its feasibility, meaning the capability of accomplishing

the approach or targets set. Two general levels of feasibility are considered:

1) Operational feasibility: operational feasibility resolves around the capability to technically

reach the results envisaged. It is about issues such as:

2) Contextual feasibility is about the enabling environment, are consensus and cooperative

attitudes expected from actors involved, such as target groups, local government etc. It is

about issues such as:

To what extent is the proposed objective relevant for the local situation?

To what extent does the choice of the target sector correspond with the needs of the

target beneficiary and target area? (See also the section 2.5.2.5 on higher relevance)

What is the relation between the proposed action and the ESAP2 objectives?

To what extent do the formulated objectives comply with the objectives of ESAP2?

(Objectives are the statements on what is to be achieved by the intervention)

To what extent is the choice of the target woredas relevant for ESAP2? (see also the

section 2.5.2.5 on higher relevance)

To what extent is the target group relevant for ESAP2? Are marginalized groups

sufficiently involved as a target group?

To what extent are the formulated objectives and results reachable?

To what extent is the proposed implementation and timeframe of the activities of the

grant application realistic?

Has the approach been used elsewhere and been successful?

The extent to which woreda representatives, management and beneficiaries support the

grant application? Are any Letters of Commitment from target woredas issued,

supporting the implementation of the grant project in their community?

To what extent have the beneficiaries been involved in the planning and development of

the project? (Early involvement reduces the probability of resistance towards the project)


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2.5.2.2.4 Impact

The grant application should clearly describe what the envisaged impact of the proposed

project is on the ground. Impact relates to tangible and intangible effects (consequences) of

the proposed grant project for the beneficiaries and the targeted woredas. These effects can

be positive and negative, primary and secondary long-term effects produced by a

development intervention, directly or indirectly, intended or unintended. Assessing the

impact of the grant application could for example focus on issues such as:

2.5.2.2.5 Sustainability

Finally, the grant application should include how it will achieve sustainability on the ground

after the grant project is ended. Sustainability relates to the continuation of benefits from a

development intervention after major development assistance has been completed. It refers

to the probability of continued long-term benefits.

Applications should therefore include a sustainability strategy that describes the

possibilities for replication and extension of the project’s outcomes and includes a

mechanism for long-term sustainability of the project’s outcome. Assessing sustainability

revolves around issues, such as:

The extent to which concrete proposed measures or activities sustain the project’s

achievements and activities;

The extent to which the grant application is related to previous or other projects and

activities (e.g. main policies) with and / or the beneficiary partner;

The extent to which the results of the project are disseminated outside the partner

organisation and target woredas;

The extent to which positive side effects / spin offs are to be expected;

The extent to which lasting benefits after the intervention are realistically expected;

What will happen as a result of the project?

How will the project make a difference in the targeted woredas?

How will this project change beneficiaries’ lives and opportunities, especially for socially

excluded groups?

Would the proposed activity have influence beyond its aims, directly or indirectly,

intended or unintended?

From the point of view of the beneficiaries, are environmental effects acceptable

compared to the positive desired effects of the intervention?


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Are there key partnerships with other civil society organizations, service providers,

woreda officials that will help sustain the project? Are these partnerships, especially with

woredas formalized in Letters of Commitment (if so, include them!);

The extent to which project activities can continue after funding ended?

2.5.2.3 Logical Framework

The application should include a consistent logical framework (LogFrame), clearly

identifying the impact or objectives your grant project will achieve. A LogFrame is in essence

a cause and effect matrix where inputs lead to outputs. Outputs lead to specific objectives,

which in turn lead to overall objectives. The format for this matrix is presented in annex B.

The LogFrame of your grant application should present the key elements of your

development intervention and their interrelationships (intervention logic). Besides, your

LogFrame should identify the inputs and outputs the project or program will deliver to

enable achievement of the proposed objectives. In all, objectively verifiable (measurable

and/or tangible) indicators need to be stated as to measure achievement of your targets.

When assessing the LogFrame, the evaluators will assess the quality of the LogFrame, the

extent to which objectives, results, activities and inputs are logically interconnected.


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2.5.2.4 Budget

The budget of the grant application will be assessed on compliance with our guiding

principles of fairness, reasonableness and related to the proposed project’s activities. In

addition, the budget will be checked on inclusion of ineligible costs, whether the estimated

amounts correspond with the anticipated activities and outcomes, and whether the budgeted

amounts are realistic for the implementation of the proposed activities (see also section 2.1.3

and 5.3 on more detail on (in)eligibility of costs).

After evaluation and review of their application and during the contract negotiation, the MA

reserves the right to ask for justification on entries in the budget and to request amendments

or corrections, so as to reach a final accepted version of the budget which, in case the

application is selected for contracting, will be included as an annex to the grant agreement.

Each grant budget will be assessed according to the above-mentioned criteria and guidelines

and the rules as set in section 2.1.3. The final decision regarding the eligibility of costs

incurred by the grant recipients will only be determined upon review of the submitted

financial reports, relevant records and supporting documents.

2.5.2.5 Higher Relevance

The ESAP2 Grant Scheme is open for project applications addressing at least two of the five

pre-selected sectors in a minimum of 3 and a maximum of 5 woredas in any of the regions of

the country. However, ESAP2 seeks to stimulate a fair distribution of targeted woredas and

sectors across the country, seeks to reach out to the emerging regions (Afar, Benishangul

Gumuz, Gambella, and Somali) and seeks to include a considerable number of CSOs to

ensure nation-wide coverage and capacity building.

Therefore, grant applications submitted by partnerships and grant applications that target

certain sectors or woredas are considered to be of higher relevance for ESAP2 than

applications without those characteristics. To ensure a fair and transparent selection process

of grant applications, the MA attaches higher relevance to grant applications that fulfill

certain specific requirements. Only applications that fulfill any of the requirements below,

will be able to receive the maximum number of points on the specific question and thus this

application has an increased chance of being shortlisted for contracting. Below, we explain to

which specific variables we attach extra value. This is also reflected in the Grant Application

Evaluation Grid (see annex H).

2.5.2.5.1 Partnerships

As partnerships provide the opportunity for less experienced CSOs/SAIPs to learn from

experienced CSOs/SAIPs and ESAP2 seeks to maximize the capacity building of CSOs/SAIPs

across Ethiopia, the MA welcomes applications submitted by partnerships. An application

will score higher on the variable of relevance when it is submitted by a partnership, where

the cooperation between the organizations clearly brings added value to the implementation

of the grant application, where a clear partnership strategy is included, that defines each all

parties’ roles and responsibilities and a strategy on how the partners seek to build the

capacities of all their consortium.


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Only applications that fulfill the above-mentioned criteria will be awarded with the

maximum number of points on this variable (see 2.2 inannexH).

2.5.2.5.2 Sector Coverage

To be eligible, grant applications submitted under this CFP need to address at least two or

more of the five sectors (education, health, water and sanitation, agriculture and rural roads,

see also section 1.3). The latter sector was not targeted in ESAP1 and is therefore new to the

program and the sector of agriculture was only targeted very limited under ESAP1.

Therefore, to the MA, grant applications targeting the sector of rural roads and/or

agriculture are of higher relevance to the Grant Scheme than applications targeting the other

sectors. The maximum amount of points on relevance of the target sector (see 2.2 in annex

H) will only be awarded to applications that target those sectors.

2.5.2.5.3 Geographical Coverage

The ESAP2 Grant Scheme is open for project applications that target a minimum of 3 and a

maximum of 5 woredas in any of the regions of the country (in Dire Dawa City

Administration, kebeles and clusters can be considered). Grant projects can thus be

implemented in every region of the country. However, while ESAP2 seeks to stimulate a fair

distribution of targeted woredas across the country, it also seeks to reach out to the emerging

regions (Afar, Benishangul Gumuz, Gambella, and Somali). At the same time, it wishes to

consolidate the gains and deepen processes of those woredas that were targeted under

ESAP1. Therefore, grant projects that are targeting certain regions or woredas are considered

to be of higher relevance for ESAP2. This is also reflected in the Grant Application

Evaluation Grid (see annex H, specifically item 2.2). Only grant projects that target woredas

that fulfill the requirements below will be awarded the maximum score on the evaluation

criterion of ‘relevance of the target area’:

1) Woredas that were target woredas in pilot projects implemented under ESAP1;

2) Woredas with significant service deficiency/deprivation levels, based on state data;

3) Woredas where PBS Local Investment Grants (LIGs) have been implemented;

4) Woredas located in the emerging regions (Afar, BenishangulGumuz, Gambella, Somali)

5) ‘Hot Spot’ woredas or those at strategic locations with high potential for snowballing the

demonstration effect to neighboring woredas and ability to serve as the center in a cluster-

based approach.

In the application, applicants need to justify their choice for their target woredas,

irrespective of whether the target woreda falls under bullet 1, 2, 3, 4 or 5. A list of woredas

that qualify under bullets 1-3 is provided in annex F; for all target woredas falling under

bullet 1-4, there is a clear criterion to establish the relevance of a target woreda. To assess the

relevance of a woreda that falls under bullet 5 (‘Hot Spot woreda’), it is up to the applicant to

include in the application a clear and convincing justification for the choice of the target

woreda. The evaluators assess the extent to which the justification is convincing and whether

the target woreda is indeed relevant.


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2.5.3 Provisional Selection (Shortlisting) of the Applications

The total score of each eligible application will be the result of adding the scores for each

section of the ESAP2 Grant Application Evaluation Grid. After all applications have been

scored, applications will be ranked based on their total score from high to low. Only those

applications that met the eligibility and administrative requirements and that were awarded

at least 50% of the score on organizational capacity and relevance will be included in the

final ranking list. A provisional list of applications that will be awarded with a grant will be

compiled, starting with the number 1 on the ranking list and going down the ranking until

the grant scheme budget envelope is depleted.

As indicated previously, the WB will most likely make additional funds available. As this is

expected in due time, the current CFP is used as a selection mechanism for the enlarged

grant scheme budget of $13,518,701,00. As soon as the additional budget is made available,

the ranking list of this Call will once again be used to identify the additional applications that

can be awarded with a grant. As the timing of the availability of additional funds is unknown,

the award of the additional budget to the grant applicants of this call might take place a few

months after the award of the grants under the current available budget.

The ESAP2 MA is responsible for the selection of the Social Accountability Implementing

Partners (SAIPs), based on the evaluation scores and the funding available and submits the

list of proposed SAIPs to the Steering Committee of ESAP2 for final endorsement, but only

after the proposed SAIPs have passed the third phase: the Financial Capacity Assessment

(see also section 2.5.3.1) In any circumstance, the MA reserves the right not to award all

available funds.

2.5.3.1 Financial Capacity Assessment

The MA will inform applicants that they have been provisionally selected (‘shortlisted’) on

the merit of their proposal and implementing capacity. They will be requested to supply the

following documents in order to allow the MA to verify once again the eligibility of the

applicants and their partners:

Bank Detail Verification Form (see format annex J), together with a recent bank

statement of the organization to verify the current bank account.

Legal Verification Form (see format annex K), which will be cross-checked with the

supporting documents provided by the applicant. Any missing supporting document or

any incoherence between the Declaration by the applicant and the supporting documents

may lead to the rejection of the application on that sole basis.

A copy of the latest audited annual report (in case the applicant has indicated in the

application format to be in the possession of this report).


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Every SAIP that has been selected based on the technical merit of their proposal, their

implementing capacity and the reasonableness of the budget, will be assessed more

elaborately by the MA on their financial capacity. The assessment visit to the SAIP’s offices

will be conducted immediately after the evaluation process and before contract signature.

Neither grant agreement nor funding will be awarded to the SAIP before the assessment is

done.

The MA performs the Financial Capacity Assessment (FCA) in a visit to the shortlisted lead

applicant, as they are the envisaged contract signatory. The lead partner is the principle focal

point for the Financial Capacity Assessment. However, it is up to the MA to decide whether

an assessment of (any of) the sub partners is required as well. The purpose of the FCA is to

make sure that the applicant has the capacity to implement the proposed activities as

described in the grant proposal, as well as identify areas that require special capacity

building interventions or major concerns that may prevent the MA to issue an award to the

organization. The FCA will verify whether all principles of proper financial management for

SAIPs are being addressed and followed, and will allow the MA to address any identified

gaps in the financial management at the level of SAIPs.

The FCA consists of a list of questions covering all necessary aspects of financial

management, divided in six sections: Planning and Budgeting, Basic Accounting Systems,

Financial Reporting, Internal Controls, Grant Management and Staffing. Based on the scores

given to each question within those six sections, a total score will be given, defining the

overall capacity of the SAIP. Based on this capacity, the MA can decide the following:

In case a provisionally selected SAIP does not pass the FCA, the application will be rejected

and replaced by the next best application in the reserve list that falls within the available

financial envelope.

2.5.4 Contracting

2.5.4.1 Assessor’s Requirements and Contract Negotiation

After passing the FCA, the MA will present the list of proposed ESAP2 SAIPs to the ESAP2

Steering Committee for endorsement. Only after their approval, the MA will start the

negotiation phase with the selected SAIPs.

During the contract negotiations, the MA and the SAIP will discuss jointly where small

adjustments of the grant application, the budget, or the organizational management system

are required. The technical team and the Grants Manager will work with each shortlisted

SAIP to determine the appropriate adjustments to be made. Adjustments

Not to award a grant agreement to the SAIP, if the identified capacity is too low, resulting

in a too high financial risk;

Award a grant agreement to the SAIP with the condition that certain controls and tools

proposed by the MA are adopted;

Award a grant agreement to the SAIP with a training plan to address the identified

weaknesses. This will be undertaken in close consultation with the Capacity Development

and Training Team at the MA (see also section 3.2).


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requested by the MA are based on the findings of the Financial Capacity Assessment (see

section 2.5.3.1) and on the comments and recommendations brought forward by the

assessors during the grant application evaluation. Adjustments to the budget can be

requested by the MA at all times, irrespective of the number of points the narrative grant

application was awarded with. In case no agreement can be reached during the contract

negotiation, the MA is not obliged to award the grant agreement and can at all times decide

not to issue the grant agreement.

Requests for adjustments by the MA and the response from the SAIP will be documented,

leading to the final version of the budget acceptable to both the MA and the SAIP. The final

agreed version will be annexed to the grant agreement. No award can be signed, and no

payment can be made to a SAIP until the contract negotiation is done and an agreement has

been reached.

2.5.4.2 Agreement and Method of Payment

Once all negotiations are finalized and documented and the grant application and grant

budget are adjusted to reflect the outcomes of the contract negotiations, the grant agreement

can be prepared for signing. The grant application and grant budget are an integral part of

the agreement. The grant agreement will be prepared in two copies; both original copies of

the grant agreement shall be signed and stamped by the authorized persons on behalf of the

MA and the SAIP. Both the MA and the SAIP will receive an original signed copy. No

advance payments or any financial transfer will be released to the partner until the duly

signed original agreements are received by the MA and participation of the relevant project

staff in the MA’s Pre-disbursement Trainings.


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ESAP2 makes use of an advance payment mechanism. Based on a request for advance

payment (see annex L), to be submitted by the SAIP to the MA, a first advance payment can

be transferred to the SAIP. SAIPs need to report on the use of the advance payment in their

Quarterly Financial and Narrative Reports (see also section 3.3.1). Only after approval of

both Quarterly Reports, a new advance payment request can be submitted by the SAIP to the

MA. The SAIP can thus itself ensure that sufficient funds to implement the activities are at its

disposal by submitting the required Quarterly Reports timely and in accordance with the

required standards. Final clearance of the advances received will take place upon receipt and

approval of the Audit Reports (see section 3.3.1.3).

2.5.4.3 Amendment of the Grant

During the course of implementation, it may become necessary to modify or amend the

initial grant agreement for a rational justification. Modifications are generally made to reflect

revisions to project descriptions or budgets, or other substantial changes to the award, such

as extension of the contract period due to unforeseen situations arisen after contract

signature.

If a modification is needed, the SAIP should contact the grant manager at the MA to discuss

the situation. If all parties agree that the grant should be amended, the SAIP should prepare

an official request in writing requesting the amendment, and send it to the grant manager.

The request should include details of the requested change, justification for the change, and

in the case of budgetary or activity changes, a revised budget showing the old budget,

proposed change and new budget by line item.

Modifications or amendments must be requested prior to the grant close out date and prior

to incurring expenses related to the change. If this is not done, the MA cannot approve the

request and any additional expenses will be the responsibility of the SAIP. The MA makes no

commitment to cover expenses incurred outside of the scope of the original grant if there has

not been written approval to do so. In any case, amendments cannot call into question the

award of the grant.

2.5.4.4 Suspension and Termination of the Grant

Suspension would be based on an extraordinary situation that has arisen during project

implementation and has the potential to make the whole grant project or a significant part of

it improbable to be carried out. Suspension may lead to termination of a grant agreement if

the issue under discussion cannot be resolved within the acceptable timeframe set by the MA

through taking all the necessary corrective actions. It is the MA’s objective that grants are

successfully implemented. However, unforeseen circumstances may develop during the

course of implementation that could put the achievement of this objective in question. For

example, the SAIP may become insolvent during implementation of the grant or other

conditions may develop that can hinder the SAIP’s successful implementation of the

program. In such situations, we have provided for terms and conditions that will allow the

MA to suspend or terminate the grant agreement.


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All grant agreements can unilaterally be terminated in the event that donor support for the

program is terminated or reduced or a partner materially fails to comply with the terms and

conditions of the grant agreement. Since material failure is a relative term on which the MA

and the SAIP may disagree, the MA will work with the SAIP to remedy instances of non-

compliance before as drastic an action as termination becomes necessary. All instances of

non-compliance must be supported with adequate documentation. Moreover, the grant

agreement can be ended, if the SAIP in question has lost its registration with the GoE.

When a SAIP fails to comply with the terms and conditions of the grant agreement signed, a

written notice will be sent by the MA, explaining the findings of non-compliance and

providing a reasonable amount of time for the SAIP to correct any deficiencies. Under

certain circumstances, both the MA and the SAIP may agree that a change in the external

environment or unforeseen incidents have made the program infeasible, irrelevant, or

otherwise undesirable to complete. In such instances, the MA will, based on consultation

with the SAIP, inform in writing the date for termination of program activities.

SAIP OM: Implementation of an ESAP2 Grant Project

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3. Implementation of an ESAP2 Grant Project

This chapter contains important information for SAIPs that have signed a contract

agreement for the implementation of an ESAP2 grant project. It presents the different roles

and aspects of participation in ESAP2 with a grant project, such as the training programmes

and support offered by the MA, the reporting cycle and closing mechanisms. The principles

of sound financial management and procurement are presented in chapter 4.

3.1 Roles and Responsibilities in Implementation

3.1.1 The Management Agency (MA)

For an efficient implementation of ESAP2, a Management Agency (MA) outside the

Ethiopian government structure is established. The MA is responsible for the overall

program coordination and provision of capacity development, technical guidance and

supporting of the implementing SAIPs. The MA is responsible for the implementation of the

different components of which ESAP2 exists:

With regard to the latter, the MA is responsible for the management and organisation of the

grant scheme and as such is the contractual partner of the SAIPs for the implementation of

their grant project. With regard to the implementation of the grant scheme, the MA has the

responsibility to:

In practical terms, this means that the MA is the direct contact point for SAIPs on the grant

received from ESAP2.

3.1.2 The Social Accountability Implementing Partner (SAIP)

SAIPs are responsible for the implementation of the contracted grant project. As such, they

are responsible for the community mobilization, creating awareness and building the

capacities of citizens and citizens groups on their rights, responsibilities and entitlements to

contribute to and demand better public basic services. SAIPs report to the MA on the

implementation of their grant project. Besides the implementation of the activities foreseen

1. Programme and Financial Management

2. Capacity Development and Training (see also section 3.2)

3. Monitoring and Evaluation (see also section 3.3.3)

4. Grant Scheme

Supervise, monitor and evaluate the grant projects, both content-wise and financially to

ensure and capture program results;

Oversee and manage the accounting of grants disbursed to contracted SAIPs

Provide training and technical guidance to SAIPs on the implementation, financial

reporting and management of the SA program at the Woreda level.


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in their grant projects, SAIPs are required to participate in the trainings, which are offered to

them as part of the Capacity Development and Training (see section 3.2).

The success of a grant project, however, does not only depend on the skills to train and to

achieve the results envisaged. It also largely depends on how the project activities are

implemented and the financial resources are managed. To this end, the SAIP shall put

maximum effort in the optimal utilization of the grant and ensuring a sound financial system

is in place. SAIPs have the responsibility to:

The SAIP will be solely responsible for any kind of other report required on this project, for

example to the GoE and relevant governmental bodies. The MA will not take any further

responsibility in this regard.

3.2 Capacity Development & Training Program

The capacity development program for SAIPs will be designed based on the contracted grant

applications and the FCA conducted amongst all SAIPs (see section 2.5.3.1). All SAIPs will

need to participate in the capacity development sessions hosted by the MA.

The first session is the Social Accountability Project Preparation workshop. This session will

focus on all aspects that are necessary for the implementation of the SA project. The topics

will include grant management, including the financial management and reporting

requirements, SA approaches and tools, and monitoring and evaluation responsibilities. The

program is provided to all SAIPs to support them in understanding the overall

implementation approach of ESAP2 and to support them in fulfilling their grant agreement

obligations.

The second capacity development session is on social inclusion and vulnerability. The focus

here is to ensure that vulnerable groups are mainstreamed throughout the project including

in the planning and implementation phases. The SAIPs will be trained on how to do this

within their current plans. The training will focus on gender, children, people with

disabilities, people living with HIV and AIDS and the elderly. Experts in these various fields

will jointly conduct the training. The two program-wide support sessions will be offered in

the first three months after contracting and will thus take place in parallel with the grant

project implementation.

Ensure that an adequate financial system with internal controls is in place;

Ensure qualified and capable staff is in place to properly administer the grant budget;

Manage the financial resources of the grant project properly and effectively;

Ensure the requirements outlined in this Manual are sufficiently addressed in their

internal financial management system;

Implement the grant project in accordance with the grant agreement. This includes,

amongst others, the fair and reasonable spending of the budget, proper documenting of

the implementation (both financially and in terms of progress on reaching results) and

adhering to the contracted reporting schedules and the agreed reporting deadlines.


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Next to these grant program-wide support sessions, the MA will negotiate and develop with

each SAIP a capacity development and training strategy, based on the FCA and their exact

training needs. Additional capacity development and training will be developed based on the

respective SAIPs’ plans (including SA tools) and through the learning benchmark training

sessions (see section 3.3.4 on learning benchmark). Besides participation in the training

program that is offered to the SAIPs, all SAIPs are obliged to provide and share their

experiences and lessons learnt with other SAIPs, when requested to do so by the MA. This

way, it is ensured that the experiences and expertise available within the SAIPs is shared

amongst them as well.

3.3 Monitoring and Reporting

3.3.1 Quarterly Reporting

3.3.1.1 Narrative Reporting

During the implementation of their project, SAIPs are required to submit Quarterly

Narrative Reports on the implementation of their grant project (see annexP for the format).

The Quarterly Narrative Reports provide the MA with concrete and detailed insight in the

progress of the grant project, as they are based on the output and outcome indicators, as

defined in the LogFrame. Exact deadlines for submission of Quarterly Reports and the exact

period it will cover are dependent on the duration of the grant project, its starting and end

date. In section 3.3.2.2, a tentative reporting schedule is presented, to provide applicants

with insight on the reporting requirements for an ESAP2 grant. Exact deadlines for reporting

and the period it will cover will be stipulated in the grant agreement. Besides providing the

MA with insight in the progress of the grant project and the use of the grant budget, the

Reports also include a planning for the next period on the activities to be implemented and

the budget needed for it. SAIPs can only implement activities which are part of the approved

and quarterly updated Action Plan (see annex C).

3.3.1.2 Financial Reporting

Besides reporting on the progress in implementing the grant project, the MA also requires

insight in the use of the grant budget and the advances received. All SAIPs are therefore

required to submit with their Quarterly Narrative Reports:

1) Quarterly Financial Report on the use of the grant budget;

2) Copies of supporting documentation for the costs included in the Financial Report;

3) A 6-month forecast indicating the intended budget expenditures for the upcoming 6-

month period.”

The financial reports will be checked on compliance with the contractual agreement, on

correct use of the format (see annex S), the inclusion of only actual costs and the balance of

the advances received. In addition, the supporting documentation is used to determine


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whether the claim is in accordance with eligibility and reimbursement principles of section

2.1.3 and 5.3.1 The MA will further compare the use of the grant budget with the interim

results achieved (as indicated in the Quarterly Narrative Report) to ensure that the costs

claimed follow the principles of fairness, reasonableness and related to the proposed project

activities. The MA has in the context of its responsibility to ensure the correctness and

fairness of expenditures claimed from the ESAP2 grant budget, the right to request

additional information or reports from the SAIPs and has the right to visit the offices of the

SAIPs (be it the lead organization or their implementing partners) for an internal audit of the

organization’s documenting system, financial records and their compliance with the ESAP2

financial guidelines. SAIPs are required to give their cooperation in this and are required to

keep all grant project related documents and records available for review by the MA in

accordance with the Ethiopian law. Payment of new advances to the SAIPs is depended on

the approval of the Quarterly Financial Report and the Budget Forecast for the next 6

months. Moreover, the SAIPs should utilize above 70% of the previous disbursed amount.

No new money transfer will take place without approval of the Financial Report of the

previous period with the required supporting documents and the Budget Forecast for the

next period. Advances will be transferred to the SAIPs in US dollars. Financial reports need

to be filled out in the appropriate reporting formats in Birr, as costs will be incurred in Birr.

The actual amount of Birr that the SAIP has received for the US dollar transfer (and on

which it thus has to report to the MA) will be determined with the bank statement of the

advance receipt. All SAIPs will receive training on how to financially manage their project

and how to report on their grant project’s finances to the MA.

The Quarterly Financial Reports in combination with the Quarterly Narrative Reports

provide the MA with insight in the implementation of the grant project and the use of the

funds. As no original receipts or documentation are sent to the MA, the MA can only

provisionally approve the Quarterly Reports, as this approval is based on the unaudited

information provided by the SAIP to the MA. As a result, the final decision regarding the

correctness and eligibility of costs incurred by the grant beneficiaries can only be taken by

the MA upon receipt of an Audit Report (see 3.3.1.3 and 3.3.2.2).

3.3.1.3 The Audit Report

All SAIPs are required to submit to the MA three Audit Reports, prepared by an external

auditor. The exact number of quarters that each report covers, depends on the total duration

of the grant project, its starting date and end date. The exact reporting periods for the Audit

Reports are stipulated in the grant agreement. The table in section 3.3.2.2, provides a

tentative reporting schedule for the Audit Reports. In principle, two Audit Reports are

required during the project implementation period and one Report needs to be submitted

after the end of the contract agreement. All Audit Reports need to be performed by an

OFAG-registered audit firm in accordance with international audit standards. The auditors

should also have a valid audit license from the registering body of the GoE and the auditors

need to be approved by the MA prior to the start of their task The Terms of Reference for the

1 Reference is made to letter MA/ESAP2/425/13 dated 19 July 2013, in which the MA introduced a simplification of the financial reporting requirements. See Annex T.


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Audit Reports with instructions for the auditor are presented in annex R. Costs for the Audit

Reports are to be covered from the grant budget and can thus be claimed with the MA. A

tentative reporting schedule on both financial as narrative reporting is provided in section

3.3.2.2. Please note that as part of the overall ESAP2 project audit, the external auditor of the

MA also has the right to review the Audit Reports of the SAIPs andcan visit the SAIP for an

additional audit of the financial administration. This external audit can take place at all

times, even after the grant project’s duration. SAIPs are required to give their cooperation in

this and are required to keep all grant project related documents and records available for

review by this external auditor, and for the period, stipulated in the Ethiopian tax

proclamation.

3.3.2 Final Reporting and Closing

The grant agreement between the MA and the SAIP specifies the exact implementation

period of the grant project. After this period, the SAIP is obliged to report on the use of the

grant and the achievements within the grant project. Final reporting resolves around four

steps, of which three have to be taken by the SAIP:

No closure of the grant agreement takes place without approval of the Final Narrative Report

and all Financial Reports with Reports of Factual Findings that, altogether, cover the

expenditure during the complete project implementation period. The fourth step,

dissemination of results and lessons learnt, is the responsibility of the MA (see section 3.3.4).

3.3.2.1 Final Narrative Reporting

The purpose of the Final Narrative Report is to describe and reflect on the entire project

period. Throughout the project period, all SAIPs will have submitted regular Quarterly

Reports to the MA (see section 3.3.1), which has allowed the MA to gain an understanding of

the activities undertaken during that specific period of project implementation. However, the

Final Narrative Report concentrates primarily on the results and impact of those activities. It

should present a qualitative summary of the project as a whole with relevant information for

the financers and auditors of the project, as well as other organizations that can have an

interest in or could benefit from the experiences and results of the project. All SAIPs are

required to submit their Final Narrative Report to the MA in accordance with the format

provided in annex Q. The Final Narrative Report contains two sections:

Final Narrative Reporting on project content (see section 3.3.2.1)

Final Financial Report (see section 3.3.2.2)

Last Audit Report on the use of the grant budget (see section 3.3.2.2)

Report on the activities implemented since the previous reporting period until the end

date of the grant agreement, and

Report on the complete project period.


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The format clearly shows the different sections the SAIP is required to fill out. The deadline

of submitting the Final Narrative Report to the MA is indicated in the grant agreement.

3.3.2.2 Final Financial Reporting and Audit Report

Besides Final Narrative Reporting, reporting on the exact use of the grant budget also needs

to take place. As indicated in section 3.3.1, all SAIPs are required to submit Quarterly

Reports, both financial and narrative and two Audit Reports during the implementation of

the project. After the end of the grant agreement, the SAIP will, next to the Final Narrative

Report, also need to submit a Final Financial Report and another Audit Report, covering the

period since the last Audit Report until the end of the agreement. The deadline of submitting

the Final Financial Report with the last Audit Report to the MA is indicated in the grant

agreement. Please note that the final 5% of the grantee’s budget will only be transferred to

the grantee once the final financial report is approved by the MA and HQ. Costs for all Audit

Reports are to be financed from the grant budget. Auditor’s costs for the last Financial

Report can be claimed separately with the MA, by submitting a copy of the auditor’s invoice

to the MA. The MA will perform its own check of the Audit Report and will check the report

against the Final Narrative Report for consistency. The MA will determine the total use of the

grant budget based on the Audit Report.

2 This schedule provides a tentative overview of the reporting obligations for an ESAP2 grantee (SAIP). Dependent on the exact starting date of the grant projects, this schedule may be adjusted. Exact reporting requirements and deadlines will be stipulated in the grant agreement.

Tentative ESAP2 Reporting Schedule2

Reporting Period

Quarterly

Narrative

Report

Final

Narrative

Report

Quarterly

Financial

Report

Q1-2013 Starting date of grant agreement–

31 March 2013 X X

Q2-2013 1 April – 30 June 2013 ( X X

Q3-2013 1 July – 30 September 2013 X X

Q4-2013 1 October – 31 December 2013 X X

Q1-2014 1 January – 31 March 2014 X X

Q2-2014 1 April – 30 June 2014 X X

Q3-2014 1 July – 30September 2014 X X

Q4-2014 1 October – End date of grant

agreement X X


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It should be noted here that there are templates and guidelines for the external

audit that must be used (see Annex R).

3.3.2.3 Close Out

Besides Final Reporting an ESAP2 grant project is not regarded as officially completed until:

3.3.3 Monitoring and Evaluation

Monitoring and Evaluation (M&E) is an important task to enable the MA to ensure proper

grant project implementation and to gain insight in achieved (interim) results and in lessons

learnt of what works and what does not.

3.3.3.1 M&E of Progress and Results

Lessons learnt of what works and what does not can at a later stage contribute to an

informed decision-making process on the effects of support to SA initiatives. The M&E task

Tentative ESAP2 Auditing Schedule

Auditing schedule for grantees of the first call

Audit 1 1 April 2013 – 30 June 2013

Audit 2 1 July 2013 – 31 December 2013

Audit 3 1 January 2014 – 31 December 2014

Auditing schedule for grantees of the second call

Audit 1 1 October 2013 – 31 March 2014

Audit 2 1 April 2014 – 30 September 2014

Audit 3 1 October 2014 – 30 September 2015

The Final Narrative Report and all the materials/deliverables of the grant project are

received by the MA and approved;

All Financial Reports and Audit Reports, prepared by the external auditor, are received

by the MA and approved;

All advance payments to the SAIP are cleared;

All final payments from the MA to the SAIP or from the SAIP to the MA have been

performed and received;

A close out letter of the MA to the SAIP in which final closure of the grant contracted is

received by the SAIP.


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of the MA implies on-going data collection, information gathering, analysis and feedback.

SAIPs have an important role to play in M&E as well, as they are required to collect data and

provide them to the MA. Contribution to the collection of relevant M&E data is a mandatory

task of all SAIPs participating in ESAP2 and this is a fixed and non-negotiable assignment.

After the grant agreement with the MA has been signed, the MA will discuss with the SAIPs

the elaboration of their grant project’s M&E system and plan. With the grant application, all

SAIPs have submitted a LogFrame and a brief outline of the planned monitoring system.

These documents will be the basis from which the M&E system and plan will be built.

Especially the LogFrame plays a crucial role in the development of the system, as it contains

the intervention logic from implementing partners to beneficiaries and includes indicators to

measure targets, output, outcomes and goals.

The MA will support the SAIPs in the development of their M&E plan, which will need to

identify how each output and outcome indicator will be measured with what means of

verification, what tools for data collection are used, when it has to take place and who is

responsible for the collection of data. The MA will support the SAIPs with training on the

usage of the available tools and mechanisms for data collection and will provide formats for

reporting.


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Besides the quarterly and annual data and information that is provided by the SAIPs to the

MA with the submission of the quarterly narrative and financial reports, the MA itself will

also collect data on the progress of the grant implementation, be it with different means and

tools, such as conducting baseline and end-line surveys, review of the quarterly reports, field

visits, and the communication and sharing of collected data by the SAIPs to the MA.

3.3.3.2 M&E of Financial Implementation

Regular internal audits by the MA to the SAIPs will take place to provide the MA insight in

the capacity and performance of the SAIP for the financial management and implementation

and to provide the contracted organization feedback and advice on how to administer their

finances and supporting documents appropriately. These audits will be conducted by the

Internal Auditor and /or the Finance Team of the MA on a regular and irregular basis

(‘surprise visits’). The checks performed during the MA’s internal auditing of the SAIPs

include, but are not limited to:

After each visit, the MA will draft an Internal Audit Report, including findings,

recommendations and an appropriate action plan, to be shared with the relevant MA and

SAIP staff. The SAIP should take appropriate action in accordance with the action plan

provided by the MA. The MA will follow-up the correct implementation of the action plan.

As indicated in section 3.3.1.3, the external auditor of the MA also has the right to review the

Audit Reports as part of the overall ESAP2 project audit. The external auditor of ESAP2

therefore also has the right to visit SAIPs for an audit of their financial administration. SAIPs

are required to give their cooperation in this and are required to keep all grant project

related documents and records available for review by this external auditor for a duration in

accordance with the Ethiopian tax proclamation.

3.3.4 Collecting and Disseminating Good Practices

During implementation of the different contracted grant projects, lessons will be learnt in

each project; lessons which are of use to all other grant implementers and at overall ESAP2

level.

Verification of Human Resource Management (for example the existence of files, job

descriptions);

Cash management control (for example existence cash safes, cash count, receipts and

vouchers);

Bank account management (check of bank reconciliation, verification of cash

withdrawals/cheque payments processes);

Fixed Assets (control of procurement records and inventories);

Expenditure verification (invoice approval, budget follow-up, accounting records).


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3.3.4.1 Collecting Good Practices during Project Implementation

In the program, a learning benchmark will be held to facilitate learning between woredas,

kebeles and SAIPs. The learning benchmark is offered to all SAIPs to support them to build

their capacity and to build platforms for further engagement amongst the different

stakeholders of the grant projects.

The prime goal of the ESAP2 learning benchmark is to learn. In the learning benchmark the

achievements of participating SAIPs, woredas and kebeles will be compared so that each of

them gets insights into their comparative strengths and weaknesses and can learn from the

practices of the ones that perform better.

In benchmark meetings, experiences will be exchanged between woredas, kebeles and SAIPs

and good practices will be identified. Relations and platforms will be built that provide

ground for future learning. The good practices will be described by SAIPs after the meeting

and will be disseminated to all the participants.

3.3.4.2 Final Dissemination of Results and Lessons Learnt

During the implementation of the ESAP2 grant projects and in the final stage of the

program, the lessons learnt collected in the framework of the Capacity Development &

Training, the Monitoring & Evaluation efforts and the learning benchmark will be

disseminated. Both the general lessons learnt as the good practices identified in the SA

initiatives will be disseminated. The purpose of dissemination is to facilitate learning

between stakeholders and to strengthen sustainability by making good practices accessible

for SAIPs, woredas, kebeles and other stakeholders, including the GoE. Dissemination will

be undertaken through different channels including:

Document best practices: To support institutionalization of the knowledge gained,

good practices will be documented in the form of booklets, articles and case study

publications on the ESAP2 website;

High-level federal conference: At the end of ESAP2, representatives from woredas,

the central government, development partners as well as the SAIPs involved, will be

invited to share their best practices and the results, set against the baselines.

Presentations will be given to a wider audience to ensure dissemination of best practices

beyond the directly involved people and parties.

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4. Financial Requirements and Procurement

In the previous chapter, the general requirements and obligations for the implementation of

an ESAP2 grant have been presented. This chapter discusses the rules and regulations for

procurement and the principles of proper financial management to be applied within the

SAIP’s organization. During the Financial Capacity Assessment (FCA) of the shortlisted

SAIPs, it is established whether these principles are being followed properly. Contracted

SAIPs need to ensure that their internal processes fulfil the requirements stipulated in this

chapter during the complete implementation of the grant project.

4.1 General Accounting Principles3

4.1.1 General Accounting Policies

The SAIP may have several accounting policies (or established practices) and the MA wants

the following to be considered in the required financial management systems.

4.1.1.1 Consistency

The principal accounting policies and methods adopted by the grantees remain consistent to

ensure that the data are comparable from one fiscal year to the other. Any change or

deviation from the standard accounting policies and methods during the period of the grant

project implementation should be disclosed in the financial statements.

4.1.1.2 Income

The incomes collected by the grantees should be clearly segregated by project and donors.

When the MA transfers any grant to the SAIP, it has to raise Official Cash Receipts and

record the ESAP2 transfer as an income of the project separately.

4.1.1.3 Categories of Expenditures

All expenditures should be recorded and classified by the budget categories as per the

approved budget and expenditures against the appropriate budget line.

4.1.1.4 Transparency

The accounting system of a SAIP should provide a clear funds flow from income receipts to

the expenditures stage including expenditures by budget categories. Each and every

transaction needs to be accompanied by complete and accurate supporting documents (see

section 5.3) to explain and justify financial data and recorded in the accounting system with

a clear coding.

3 Please note that the guidelines stipulated in this Manual are based on the policies and regulations of the World Bank. In case changes occur in these policies and regulations, the MA has the right to adjust its policies accordingly.


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4.1.1.5 Materiality

All financial data or transactions that significantly affect financial statements should be

recorded and disclosed properly. This should be communicated to the MA within one month.

4.1.1.6 Disclosure

All important information about the SAIP’s financial position and operation has to be

disclosed in the financial statements in a full and fair manner.

4.1.2 Specific Accounting Policies

Each SAIP may have different specific accounting policies, which are applicable for its day-

to-day financial activities. However, the MA requires every SAIP to show evidence that the

following specific issues, but not limited to, have been addressed in their internal financial

management:

4.1.2.1 Financial/Accounting Year

It is required that the SAIP’s Financial Manual clearly indicates the financial period /

accounting year, which is used in the organization. It must be either Ethiopian or European

calendar as per the CSO’s proclamation.

4.1.2.2 Basis of Accounting

The SAIP is expected to clearly set out the basis of accounting: Cash, Accrual, Modified, etc

is employed in the organization.

4.1.2.3 The Accounting System

The SAIP shall have a clearly predefined type of accounting system used for all accounting

activities. This needs to be a double entry system, as it facilitates the automatic creation of

reports acceptable to the MA.

4.1.2.4 Fixed Assets

SAIPs are required to maintain proper financial records for their fixed assets. The SAIPs’

financial policy must define how the fixed assets are recorded and maintained, as an asset or

expense. If they are treated as an asset, it should clearly show the depreciation methods it is

using as well.

4.1.2.5 Staffing Requirements and Division of Responsibilities

Minimum staff requirements contribute to the existence and following of internal approval

procedures and execution of proper financial management. The fulfillment of the minimum

staff requirement is assessed during the FCA process. No disbursements will be transferred

to a contracted SAIP prior to proper fulfillment of these minimum requirements. Minimum

requirements in the field of Human Resources are:


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The above-mentioned staff bears the responsibility of managing, administering and

monitoring the budget allocated to the grant project, and has clearly defined tasks,

responsibilities and mandate to do so. The roles and responsibilities of these staff members

are stipulated in the SAIP’s Financial Manual. SAIPs follow procedures for approval of

expenses with minimum two of the above staff involved. SAIPs are required to ensure that

the minimum staff requirements are fulfilled during the complete implementation period of

their ESAP2 grant project.

4.1.2.6 IT requirements

Though there will be no requirements included in the Grant Scheme/ Call for Proposals

regarding ownership of specific IT equipment, the SAIPs should have at least the technical

capacity of managing their funds and submitting their Quarterly Financial Report to the MA.

If the SAIP does not have accounting software in place, it will be expected to keep proper

accounting records physically, and be able to prepare financial reports, in the reporting

formats required by the MA. The MA highly encourages the SAIP to use the accounting

software suitable for its day-to-day activities as it will facilitate the preparation of financial

reports.

4.1.2.7 Internal Controls

The SAIP must ensure that an adequate internal control system is in place in order to

safeguard the assets from misappropriations, fraud, and corruption. Though, the MA has

checked the internal controls of the SAIP during the risk assessment, the SAIP is required to

further strengthen and improve its internal control systems during the lifetime of the project.

In case an internal auditor position exists within the SAIP, he/she is required to audit the

ESAP2 grant project as part of his/her normal auditing duties and responsibilities, as

stipulated in the SAIP’s Financial Manual.

4.1.2.8 Segregation of Duties

In order to ensure that sound internal control systems are in place, the SAIP is required to

maintain the segregation of duties among the financial staff. This segregation should clearly

show how different staff of the SAIP handles the activities of recording, custody and

approval. Moreover, the following issues should be addressed in its system:

One Director, and

One Financial Manager / Accountant, and

One Project Manager.

Cash Management (bank and cash on hand);

Clear procedure for the payment approval;

Evidences required.


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4.1.2.9 Clear Chart of Account and Budget Code

The SAIP must have a clearly defined chart of accounts as well as budget codes. Whether it is

using a computerized or manual accounting system, the SAIP should be able to generate

financial reports based on project and donors with a clear expenditure type. The MA will not

accept any report that does not show the exact expenditures of ESAP2 separately and clearly.

The budget code needs to be used to distinguish between the donors, projects and the budget

line of the project.

4.1.2.10 Cash Management

4.1.2.10.1 Petty Cash

Imprest fund/petty cash shall be maintained by the SAIP for the purpose of making

miscellaneous payments. There needs to be a clear threshold for petty cash and cheque

payments.

4.1.2.10.2 Cash at Hand

If the SAIP does have a policy to keep cash at hand (or in a safe) for any emergency or other

purpose, it will be possible to maintain the same for the ESAP2 project too. The Internal

Controls and the necessary procedure should be set out in the Financial Manual.

4.1.2.11 Cheque Payment and Bank Account Management

All payments above a certain limit (as per the petty cash threshold) have to be processed by

cheque. The threshold shall be clearly indicated in the Financial Manual of the SAIP.

The petty cash account is separated from cash on hand account, if any

The threshold for petty cash should be determined in the SAIPs existing policies;

If there is not a separate petty cash for the ESAP2 project, it will be possible to manage it

together with other projects. However, the amount to be charged from the ESAP2 project

should be clearly identified with an appropriate budget code and maintained separately

in the accounting records;

There should be clear procedures and internal controls for approving petty cash

payments;

Cash counts should be done both on a regular and on a surprise basis. Cash counts

should be reconciled with cash books and any difference should be explained and

appropriate action should be taken;

The SAIP is required to use an appropriate internal payment approval format. Preferably,

this is a pre-numbered Petty Cash Payment Voucher;

Replenishment procedure shall be clearly stated and petty cash count shall be made at

the time of replenishment.


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4.1.2.11.1 Cheque Payment

4.1.2.11.2 Bankbook

The MA requires SAIPs to open a separate bank account for the financial transfers for the

ESAP2 grant to ensure that all processes on income and expenses for the grant project are

separated from transfers in the framework of possible other (donor funded) projects. It is up

to the MA’s discretion to demand a SAIP to use a separate bank account for the ESAP2 grant.

This will be clearly communicated during the contract negotiations. In any case, a bankbook

or bank register shall be maintained by the SAIP to record the movements of the SAIP’s bank

account showing the beginning balance, deposits, withdrawals, and ending balance at any

given time. Such a register contains information such as the date of transaction, description

(purpose of payment or deposit), name of depositor/payee, reference documents (bank

advice or cheque number), and Check Payment Voucher (CPV). This can also be generated

from the accounting software, if any, that the SAIP is using.

There should be an internal financial policy that shows the payment request and

approval process/workflow;

There should be at least two bank signatories for the account that will be used for this

project. If there are more than two signatories, the prime signatories should be

identified;

If there is an approval limit for the signing of cheques, the SAIP should clearly show this

in its Financial Manual;

If a Bank transfer is made, the copy of the transfer letter and the bank advice should be

attached with the payment voucher

Pre-numbered payment vouchers must be prepared and approved by authorized persons.

Such vouchers are normally supported by relevant documents such as purchase orders,

vendors invoice, and receiving reports

The cheque payment voucher shall be coded with ink and the code must indicate the

donor, project, and activity;

Cheque must always be prepared in the name of the payee, signed by authorized

signatories and handed over to the recipients against receipt or signature on the cheque/

bank payment vouchers;

For all cheque payments, the SAIP must get official cash receipts from the suppliers and

the original must be attached with the voucher. If it is not possible to get such receipts,

the SAIP should present strong justification for this deviation, in line with its Financial

Manual. In any case, the MA withholds the right to reject claimed costs in case it is of the

opinion that the justification provided is of insufficient quality;

All cheque payment vouchers should be coded with ink and cancelled (stamped) with the

“PAID” stamp;

The SAIPs internal financial policy and Financial Manual should also show what the

procedure would be for incomplete cheques that reach the signatory.


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4.1.2.12 Bank Reconciliation

At least at the end of each month, a reconciliation of the bankbook (or ledger accounts) and

bank statements should be prepared for the bank account used for the ESAP2 project. The

result of the reconciliation should be documented in a formal bank reconciliation statement.

Un-reconciled items identified during this exercise should be followed up for appropriate

action. The bank reconciliation and bank statement shall be submitted to the MA along with

other reporting documents.

4.1.2.13 Advances

One of the most liquid assets in an organization, next to cash, is advances. To safeguard it

from any kind of misappropriation, the SAIP is required to put strong internal controls over

this account. Most commonly payables of the SAIPs are claims caused from work and travel

advance to staff and prepayments. SAIPs are required to have the relevant systems in place

and to adhere to the following principles:

The MA encourages SAIPs to liquidate outstanding advances in a timely manner. At all

times, the Quarterly Financial Reports should show the un-liquidated advances in the

reporting period.

A clear policy should be in place on how and to whom any cash advance is given. The

limit of cash advance that can be given to an individual staff member and the time bound

given for the liquidation of advance should be indicated in its policies;

Advances can only be provided to staff related to the ESAP2 grant project;

Advances from the MA to the SAIP are subject to approval of the Quarterly Financial and

Narrative Reports and the updated Action Plans submitted to MA;

Advance to branch offices and/or partner organizations must be made through bank wire

transfer;

As soon as the advance is given to the staff, the relevant account should be recorded in

the controlling and subsidiary ledgers and the accounting system should allow the user to

track the progress on the payable accounts;

Before an advance is issued to the staff, it must follow the appropriate approval systems

and processes, as indicated in the SAIPs Financial Manual.

The SAIP must ensure that the advance taken by the staff is used solely for the purpose of

the approved project activities.


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4.1.2.14 Budget and Expenditure Control

The budget is an important tool, which helps an organization in allocating and utilizing the

available resources in an efficient and effective way. The budget available for the

implementation of the ESAp2 grant project is indicated in the grant agreement. SAIPs are

required to monitor the utilization of the grant budget on a regular basis and report the use

to the MA in timely fashion, as contractually agreed. The following issues must be addressed

by the SAIP:

Budget Code:As soon as the final budget is approved, the SAIP must set up a budget code for

each of the budget lines. Then, the report generated from the accounting software, if any,

should be based on these codes.

Permissible Variation/Flexibility Rate: Once the grant agreement is signed by the SAIP and

MA, the annexed contracted budget needs to be used as a basis for the financial activities and

reporting. Thus, the expenditures incurred for the project shall be in accordance with the

approved budget. The permissible variation rate is indicated in the grant agreement. The

SAIP must obtain prior approval for the over-utilization of above this rate or for reallocation

of budget.

Budget Monitoring: As indicated in the reporting requirements, the SAIPs must monitor

their budget regularly. This monitoring helps the SAIP to request for revision or reallocation

of budget lines in a timely manner. The SAIP can develop its own budget monitoring tools in

addition to the tools attached with the Financial Report template.

4.2Procurement from the ESAP2 Grant Budget

The MA requires the SAIP to have sound procurement policies in place. By entering in a

contractual agreement with the MA, the SAIPs are expected to follow the World Bank’s

guidelines and procedures on procurement of goods and services. Procurement of goods and

works and selection of consultants under the proposed project need to be carried out in

accordance with the Procurement Manual for CSOs participating in ESAP2, whichis

presented in annexN.

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5. FAQs

This last chapter of this Manual provides practical information on implementing an ESAP2

grant and getting costs for this reimbursed. As it will probably answer practical questions

that come up during the financial implementation of an ESAP2 grant project, it isorganised

according to the Frequently Asked Questions (FAQs) principle.

5.1 Grant Project Planning of Activities

When can the implementation of activities start?

For the implementation of the grant project’s activities (workshops, trainings, studies), the

SAIP must obtain prior approval from the MA. This implies that activities can only be

implemented when they are included in the Action Plan (see annex C) for the grant project.

This Action Plan needs to be updated with every Quarterly Report. Activities can only be

implemented upon receipt of the approval letter from the MA for the updated Action Plan in

which the respective activity is included.

What to do when I want to implement activities which are not included in the

Action Plan?

In case the SAIP wishes to implement an activity which was not foreseen in the Action Plan

for the quarter in question, it will need to submit a revised Action Plan and await approval

from the MA before starting the actual implementation.

5.2 Grant Project Financial Planning and Management

How can we request an advance payment?

An advance payment can be requested with the format as presented in annex L.

When can we request an advance payment?

Payment of new advances to the SAIPs is depended on the approval of the Quarterly

Financial Report of the previous period (see also section 3.3.1.2). An advance payment can

thus be requested once the SAIP has received the written approval for the Financial Report

of the previous Quarter and the Budget Forecast for the next period.

5.3 Reimbursable and Eligible Costs

In section 2.1.3 of this Manual, the eligibility of costs is discussed. The section provides a

description of the basic principles and cost categories that determine the eligibility of

expenditure under the Grant Scheme.Only actual costs can be claimed from the ESAP2

budget. As indicated in section 3.3.1.2, the final decision regarding the eligibility of costs

incurred by the grant beneficiaries is with the MA. The MA will determine the eligibility

upon review of the submitted Financial Reports, relevant records and supporting documents

and will take into account to what extent the costs claimed are in line with the principles,

presented in section 2.1.3. In addition to the above-mentioned principles, specific

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requirements exist for the claim, reimbursement and substantiation of costs for:

How do I claim per diems for staff or trainers?

The SAIPs should have a clear pre-defined per diem policy that is applied to all staff as well

as all projects. The SAIP should not use different per diem rates and policies for this

particular project. All the documentation shall be filed properly with the SAIP’s personnel

files, and the policies should be known by the staff.If no internal per diem policy exists at the

beginning of implementation of the ESAP2 grant, the SAIPs shall set up a policy – acceptable

to the MA – to be used for all the project’s activities that require the use of per diem.

How do I claim costs for workshops or trainings?

Large portions of the ESAP2 grant budget will be spent on workshops and trainings. When

implementing trainings and workshops, SAIPs need to take the following requirements into

account:

Per diems for staff or trainers

Costs for workshops or trainings

Staff salaries

Fixed assets

For the implementation of activities to be covered by the ESAP2 grant budget, the SAIP

must obtain prior approval from the MA. This is obtained through the inclusion of the

activity in the Action Plan and the receipt of approval for the Action Plan by the MA.

Per diems shall be paid according to the rate stipulated in the SAIP’s pre-defined per

diem policy and only for participants who come from places other than where the

workshop takes place;

Lunch and refreshments shall, whenever possible, be organized by the SAIP, rather than

giving cash to the participants and official receipts should be obtained. In a situation

where it is possible to do so, SAIPs can get an unofficial receipts and it has to be justified

well (see Annex N-1 for more details);

Transportation costs must be paid according to the actual cost reimbursement system,

however not exceeding the Government transportation tariff (from region to regions,

zone to zone, etc). A SAIP is to provide available transport receipt /invoices with written

justification about the situation where the workshops/ trainings are carried out. Fuel

costs shall be reimbursed based on the actual fuel and maintenance costs, to be verified

by a vehicle log-book and invoice/receipts for fuel and maintenance costs. If two or more

participants use the same car, fuel expense shall be reimbursed only once (fuel costs are

thus compensated per car and not per participant) (see Annex N-1 for more details);

In cases where the participant(s) use(s) air travel, the SAIP shall reimburse the actual

cost of an Economic Class fare only. The MA will only accept an official receipt of the

airline used or the Travel Agent, accompanied by the boarding passes;

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The MA will not accept any workshop/training costs unless it is accompanied by a signed

Attendance Sheet. This sheet needs to indicate the date, location, describe the

training/workshop and indicate all names of participants and their signature, confirming

their attendance. An example attendance sheet is provided in annex M.

Please note that for outsourcing of any work to an external consultant or the procurement of

goods, the World Bank’s Procurement Rules apply (see section 4.2). This implies that the

procurement should be indicated in the Procurement Plan which is subject to review and

approval by the MA and the World Bank.

How do I claim staff salaries?

As one of the requirements in the ESAP2 project, SAIPs can only charge the salaries of the

already approved project staff. In the Quarterly Financial Report, the finance staff of the MA

will check the following documents and information:

How do I deal with fixed assets?

All the assets procured from this project fund, must be kept properly, safeguarded from

damage, misuse and theft. The fixed assets must be used only for the ESAP2 project

activities. The SAIP should maintain a Project Fixed Asset Register, conduct an annual

inventory, and tag the project’s fixed assets with an identifiable logo. The list of the fixed

assets, acquired from the grant project’s budget needs to be submitted to the MA with every

audited Financial Report.

Complete list of staff involved in the project;

Timesheets showing how much time has been worked for this project (see annex O);

No top up salary paid to the project staff. The staff assigned for this project shall be paid

only regular salary and any top up on their regular salary is considered an ineligible cost;

Salary proration sheet that shows the source of funds for the salaries of project staff;

The SAIPs shall confirm that government tax(personal income tax and withholding tax)

are paid within the allowed period;

Salary shall be clearly coded in the accounting system and it should be traceable to the

project;

The salaries are also classified as per the CSOs’ proclamation (project and administrative

staff) so as to show the SAIP has adhered the existing directives;

The SAIP should comply with the relevant local laws, directives and proclamations

applicable to CSOs.

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What are the minimum requirements for supporting documentation for

reimbursable costs?

The SAIP is expected to submit copies of receipts for every payment made for the

project to the MA. The MA will check the receipt/cost for its eligibility. Any receipt

which does not meet the following requirements will be considered as ineligible cost:

5.4 General Grant Project Reporting

During the implementation of the grant project, SAIPs are contractually required to submit

Quarterly Reports, three Audit Reports and one Final Report to the MA. Besides providing

the MA with insight in the progress of the grant project and the use of the grant budget in the

reporting period(s), the Reports also include a planning for the next period showing the

activities to be implemented and the budget needed for it.

What formats do I use for my Quarterly/Final Report and the Audit Report to the MA?

All Reports need to be submitted to the MA in the format provided by the MA. The formats

can be found in annex P, Q, and R. The latest versions can be downloaded

fromwww.esap2.org.et/components/grant-scheme/

Official Receipt: the SAIP must get official receipts (printed and VAT-registered) for

any payment made for this project.

Name of Payee: any receipt which does not include the name of payee (e.g. SAIP’s name,

staff, beneficiary or any other party involved in the project) is not acceptable and will be

ineligible cost to the project;

Amount: the receipt must show clearly the amount (both in figure and words) paid to the

particular transaction;

Date: the receipt should mention the date of the transaction. A date before or after the

contracted grant project period is considered to be ineligible, with the exception of the

auditor’s costs for the last Audit Report;

Description/purpose: the receipt must clearly show the type of service or goods

purchased with that transaction. The language should be in English or Amharic.

No. of unit: the receipts should show the number of units purchased with that receipt,

whenever applicable.

Unit Cost: the receipt should include the unit cost whenever applicable.

Accompanying documents: the receipt should be accompanied with the necessary

supporting documents including “attachment” for cash-register receipt.

http://www.esap2.org.et/components/grant-scheme/

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In what currency do I need to report to the MA?

Financial reports need to be filled out in Birr. To enable the MA to determine the exact

amount of Birr the SAIP has received for the advance received in US dollars, the SAIP is

required to submit to the MA a copy of the SAIP’s bank statement, showing the receipt of the

advance.

How do I submit my Quarterly/Final/Audit Report?

All Reports need to be submitted to the MA in hard copy and in soft copy. Soft copies can be

submitted per e-mail ([email protected]) or per CD-ROM. Hard copies need to be sent to

the MA, to the following address:


Cape Verde Street

P. O. Box 28024/1000



What is the deadline for submission of my Quarterly/Final/Audit?

The exact deadlines for submission of Quarterly/Final Reports and the Audit Report are

stipulated in the grant agreement between the SAIP and the MA.

What period does my Quarterly/Final/AuditReportneed to cover?

The exact reporting periods per Quarterly/Final/Audit Report are stipulated in the grant

agreement between the SAIP and the MA.

When will the MA start the review of my Quarterly/Final Report and the

corresponding Audit Report?

The MA will only start processing Quarterly/Final Reports, once the complete package is

received, with all necessary sheets, reports and supporting documentation attached.

5.4.1 Grant Project Quarterly Reporting

What constitutes a complete Quarterly Report?

A Quarterly Report consists of a Quarterly Financial Report (see section 3.3.1.2) and a

Quarterly Narrative Report (see section 3.3.1.1).In two instances, these reports need to be

accompanied by an Audit Report , prepared by an external auditor (see section 5.4.3).


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Statement of Expenditure Total(SOE Total)

This sheet of the Financial Report shows the approved budget (as stated in the grant

agreement) against the corresponding expenditures for each budget line. The expenditures

shown in this sheet of the Financial Report correspond with the sum of SOE for each quarter.

The SOE Total is automatically generated, when the SOE per quarter is filled out by the

SAIP.

Statement of Expenditure (SOE)

The SAIPs are required to report the expenditures per budget line per month. The reported

expenditures should correspond with the sum of expenditures (per budget line) per month

indicated in the Invoices Detailed Ledger.

Statement of Cash Balance

The purpose of this sheet of the Financial Report is to show the status of the budget as well

as the cash transfer from the MA to the SAIPs. In this sheet, the SAIPs should indicate what

amount has been received so far and what expenditures were incurred to date. This will help

the MA to track the transfer of cash for each reported period.

Budget Forecast for the next Quarter

The Budget Forecast sheet helps the SAIPs to estimate the expenditures for the next quarter

and thereby request sufficient funds for the implementation of the planned activities for that

quarter. The MA will decide of the amount to be released for the next quarter based on this

report, the statement of expenditures and the approval of the Action Plan for the next

quarter.

What constitutes a complete Quarterly Financial Report?

A Quarterly Financial Report consists of:

One hard copy original and one electronic softcopy of the Quarterly Financial Report,

consisting of (see below for more information):

Statement of Expenditure (SOE) Total

SOE


Budget Forecast for the next Quarter

Invoices Detailed Ledger (Statement of Itemized Expenditure)

Copies of all supporting documentation for the costs claimed in the respective Report;

Copies of the monthly bank statements for the reporting period;

If applicable, an Audit Report, covering the period as stipulated in the grant agreement.

With the Audit Report, the list of fixed assets purchased from the project budget needs to

be submitted as well.

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Invoices Detailed Ledger (Statement of Itemized Expenditure)

This table is used for registering all invoices and declarations paid by the SAIP from the

grant budget. Each expenditure should be registered in this report. The details include the

number of the receipt, year, month, date, budget line, description (in English), payee,

reference and amount. All expenditures indicated in this ledger need to be substantiated with

supporting documentation(see above on the minimum requirements for the supporting

documents.

What constitutes a complete Quarterly Narrative Report?

A complete Quarterly Narrative Report consists of:

One hard copy original Quarterly Narrative Report and one soft copy;

Copies/originals of deliverables, produced in the framework of the activities

implemented, such as training programmes, toolkits, and questionnaires, which have

not been submitted to the MA with previous Quarterly Reports;

Updated Action Plan for the next period (see annex C);

Only with the 1stand 4thQuarterly Report: Procurement plan for the complete

project period (see annex N).

5.4.2 Grant Project Final Reporting

What constitutes a complete Final Report?

A Final Report consists of a Final Financial Report (see section 3.3.2.2) with a corresponding

Audit Report(see section 3.3.2.2) and a Final Narrative Report (see section 3.3.2.1).

What constitutes a complete Final Financial Report?

The Final Financial Report is verified by an external auditor. It therefore consists of:

One hard copy original and one electronic softcopy of the Final Financial Report with all

required tabs filled out (see section 3.3.2.2 and 5.4.1);

Copies of all supporting documentation for the costs incurred since the last Quarterly

Report and included in the Final Report;

Audit Report 3, covering the period as stipulated in the grant agreement;

List of fixed assets, purchased from the project budget;

Copies of the monthly bank statements since the last Quarterly Report.

What constitutes a complete Final Narrative Report?

A complete Final Narrative Report consists of:

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One hard copy original Final Narrative Report and one soft copy

Copies/originals of deliverables, produced in the framework of the activities

implemented, such as training programmes, toolkits, and questionnaires, which have not

yet been submitted to the MA with the previous Quarterly Reports.

5.4.3 Audit Reports

When do I need to submit an Audit Report?

In total, three Audit Reports will need to be submitted to the MA. Two reports during project

implementation (see 3.3.1.3) and one after the end of the contract agreement with the Final

Financial Report (see 3.3.2.2). The exact deadlines for submission of the Audit Reports are

stipulated in the grant agreement between the SAIP and the MA.

Do I need to submit an Audit Report with every Quarterly Report?

No. The Audit Reports cover a period of 2-3 quarters. The grant agreement stipulates exactly with

which Quarterly Report an Audit Report should be submitted to the MA.

How do I know whether an Audit Report needs to be submitted with my Quarterly Report?

This is stipulated in the grant agreement.

From what budget do I need to cover the auditor’s costs for the Audit Reports?

Auditor’s costs for the preparation of the Audit Reports are financed from the grant budget.

The grantee needs to ensure that the auditor’s costs can be financed from the grant budget

without exceeding the maximum grant budget. The costs can be included in the Quarterly

Financial Reports for the MA.

How do I claim the costs for the Audit Report for the Final Financial Report?

Auditor’s costs for the last Audit Reportcanbe claimed separately with the MA by submitting

a copy of the auditor’s invoice to the MA with the submission of the Final Reports.

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Annexes:

Application

Annex A: ESAP2 Grant Application Format

Annex B: ESAP2 Logical Framework Format

Annex C: ESAP2 Action Plan Format

Annex D: ESAP2 Budget Application Format

Annex E: ESAP2 GrantApplication Partnership Statement

Annex F: ESAP2 List of Woredas of Particular Relevance

Annex G: ESAP2Eligibility and Administrative Requirements Grid

Annex H: ESAP2 Grant Application Evaluation Grid

Implementation

Annex I: ESAP2 Grant Agreement

Annex I-1 ESAP2 Budget Modification

Annex J: ESAP2 Grant Applicant’s Bank Detail Verification Format

Annex K: ESAP2 Grant Applicant’s Legal Verification Format

Annex L: ESAP2 Request for Advance Payment

Annex M: ESAP2 Example Attendance Sheet Format (optional)

Annex N: ESAP2 Procurement Manual for SAIPs

Annex N-1 ESAP2 Guidelines for Reimbursement of Travel Costs and Per Diem

Annex O: ESAP2 Timesheet Format for Time Spent by Staff

Reporting

Annex P: ESAP2 Quarterly Narrative Report Format

Annex Q: ESAP2 Final Narrative Report Format

Annex R: ESAP2 ToR for the Audit Reports

Annex S: ESAP2 Quarterly and Final Financial Reporting Format

Annex T: Simplification of Financial Reporting Requirements of ESAP2


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Annex A

ESAP2 Grant Application Format

Note for applicants: Before you complete this ESAP2 Grant Application Format, please

ensure that you have read and understood the guidelines for this Call for Proposals, as

stipulated in this Operational Manual. Read and complete the format with all due care, so as

to be precise and clear. You will be asked to provide all the necessary information and

documents as requested in the Operational Manual.Any error observed or any major

inconsistency in the full application format (e.g. the amounts mentioned in the budget

worksheets are inconsistent) may lead to the rejection of the application.

The Application Format is designed to include the information of four partners. In case you

are submitting your application with less than four partners or individually, you can delete

the sections in which information is requested on your partners. Incomplete applications will

not be taken into account.

In line with the Operational Manual for the Call for Proposals

ESAP2/CFP01/2012

1. Core Information and Executive Summary

Please complete the below table and add a narrative summary of your grant application

Project Title

Grant Budget Requested ($)

Date of submission

Implementation period (dd/mm/yy until dd/mm/yy)

Grant applicants 1. (name of lead applicant)

2. (name of applicant, delete if not applicable)




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Target sectors

(minimum 2, thick the box: )

Agriculture

Education

Health

Rural Roads

Water and Sanitation

Target woredas and kebeles

(minimum 3 woreda, maximum 5

woreda)

(minimum 3 kebeles per woreda)

1. (name of woreda and

region)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)


region)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)


region)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)


region, if applicable)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)


region, if applicable)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)

Target group (Target groups are the groups/entities who will be directly

positively affected by the project at the specific objectives

level)

Final beneficiaries (Final beneficiaries are those who will benefit from the

project in the long term at the level of the society or sector at

large, thus at overall objective level)


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Objectives of the grant application (The objective of the grant application states what the grant

project itself is expected to achieve)

Submission Statement

Please have this statement signed by a representative of the Lead Applicant

The Lead Applicant, represented by the undersigned, being the authorized

signatory of the Applicant, hereby declares that:

the applicant is directly responsible for the preparation, management and

implementation of the project described in the present application with its partners,

if any,

the applicant undertakes to comply with the obligations foreseen in the ESAP2

Grant/Operational Manual and its annexes,

the applicant solemnly declares that all information given in the present Application

are true.

Full name of lead organization

Name of authorized person

Signature authorized person of

Lead Applicant

Place and date


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2. General Information

2.1 Applicants’ Organizational Profile

2.1.1 Lead Applicant

Full name of lead

organization / Applicant #1

Acronym

Nationality

Legal status Type of organization

Registering Government Body

Place of Registration

Date of Registration

Registration Number

License Valid until (date)

Tax Identification Number

Official address

Fax number

Telephone number

Website (if applicable)

Contact person

Telephone number of contact

person (cell or landline)

Fax number of contact

person

E-mail address of contact

person


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2.1.2 Sub Partner 2 (delete, if not applicable)

Full name of partner organization

/ Applicant #2

(delete sections below in case

application is submitted by an

individual organization)

Acronym

Nationality


Registering Government

Body



Registration Number


Tax Identification

Number

Official address

Fax number

Telephone number


Contact person



Fax number of contact person

E-mail address of contact person


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/ Applicant #3


application is submitted by a

partnership of two organizations)

Acronym

Nationality



Body



Registration Number


Tax Identification

Number

Official address

Fax number

Telephone number


Contact person






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/ Applicant #4


application is submitted by a

partnership of three organizations)

Acronym

Nationality



Body



Registration Number

License Valid until

Tax Identification Number

Official address

Fax number

Telephone number


Contact person






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2.2 Operational capacity of your organization / partnership

2.2.1. Define the roles and responsibilities of partner organizations that will

be involvedin the implementation of the grant project. Identify the contribution

(technical other support) that each partner will bring to the project.

Organization(s) Role and

involvement in

the preparation

of the grant

application

Role and

involvement of

the organization

in implementing

the grant

application

Experience of

similar projects,

in relation to

role in the

implementation

of the proposed

project

History of

cooperation

with the

other

partners of

the

partnership

1.

2. (delete, if not

applicable)

3. (delete, if not

applicable)

4. (delete, if not

applicable)

2.2.2. (if applicable)Describe your partnership strategy. How are the organizations

going to cooperate during the implementation of the grant project, how does information

sharing and capacity building within the partnership take place? Are the cooperation and

the roles and responsibilities formalized?

2.2.3 Present the organizational chart for the management and

implementation of the grant project. The chart must clearly show the roles and

responsibilities of the organizations and persons involved.


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2.2.4 Present the key personnel proposed to work on the project. Indicate their

main tasks and responsibilities and include a short profile of their expertise, experience and

suitability for their task.

2.2.5 Please state here the number of permanent and temporary employees

per organization / partner

Name of

organization /

partner

Type of

employee

Description of main task and

responsibilities

Quantity Location

1.

Permanent

employees

Temporary

employees

2. (delete, if

not

applicable)

Permanent

employees

Temporary

employees

3.

(delete, if

not

applicable)

Permanent

employees

Temporary

employees

4. (delete, if

not

applicable)

Permanent

employees

Temporary

employees


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2.3 Financial Capacity

2.3.3 Please state the financial data of the organization / partner for the last 2

years (please note that during the Financial Capacity Assessment, the lead applicant is required

to provide the MA with a copy of the audited annual report (in case its presence is stated in the

application)

Organization /

partner

Year Annual

income

(USD)

Expenses

incurred

Main

financial

backers

Audited

Annual

Report

Available

?

Financial

Audit

performed

by (name

company)

1.

2011 Y / N

2010 Y / N

2.

(delete, if not

applicable)

2011 (not applicable)


3.

(delete, if not

applicable)



4. (delete, if not

applicable)




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2.4 Experience and Expertise (max. 2 pages)

2.4.1. Please give details on your organization profile and experiences since its

establishment. Describe here:

When your organization was established and organizational structure

Organizational profile: objectives / vision / mission

Core areas of expertise

Program areas and activities it has been undertaking

List of donor partners, implementing partners and networks with which the

organizations works.

In case you are submitting your application in a partnership, describe this for every partner

in your partnership.

Organization/

partner Organization’s profile and experience

1.

2. (delete, if not

applicable)

3. (delete, if not

applicable)

4. (delete, if not

applicable)

2.4.2 This section present the capacities of the organization(s) in getting

proposed activities implemented according to plan. Please state below the

organizations’ experience in implementing similar (size) development projects in the field

of social accountability? Provide a detailed description of actions and projects.

Name of

organization /

partner

1.

2. (delete, if not

applicable)


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3. (delete, if not

applicable)

4. (delete, if not

applicable)

2.4.3 Please state below the organization’s experience in implementing

development projects in the service sectors and target woredas? Provide a

detailed description of actions and projects

Name of

organization /

partner

1.

2. (delete, if not

applicable)

3. (delete, if not

applicable)

4. (delete, if not

applicable)

2.4.4 Please use the table below to list at least three organizations that can

provide testimonies regarding your organizations’ / your partners’

performance.

Name of

organization /

partner

№ Relationship with

your organization

Full Address of

the organization

(E-mail, Tel.,

cell phone)

Contact Person

1.

1.

2.

3.

2.

(delete, if not

applicable)

1.

2.

3.


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3. (delete, if not

applicable)

1.

2.

3.

4. (delete, if not

applicable)

1.

2.

3.

3. Description of the Grant Project (max. 12 pages)

This section provides a detailed description of the intervention. It should include a

technically sound approach to addressing the issues of social accountability in a realistic

manner. The interrelation between the different levels should be explained.

3.1 Intervention Logic

Please fill out the LogFrame of annex B in which you indicate the overall objective of your

grant application, the specific objective(s), the expected results and outputs, planned

activities to reach the results anticipated and inputs needed for the implementation of the

activities.

3.2 Relevance of the Action: Please describe the relevance of the action towards

enhancing social accountability

3.3 Duration

The duration of the implementation of the grant project is ____ months. Please note that

the maximum duration of a grant project is 24 months.

3.4 Action Plan

Please draft the Action Plan by filling out the format in annex C. The Action Plan should

present the activities and months for expected outcomes.


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3.5 Consideration of cross-cutting issues: this section covers how socially excluded

groups such as women, children, those living with HIV/AIDS, the elderly or the disabled

are included in your grant project activities.

3.5.1 Please define the socially excluded and vulnerable group(s) your grant

project attempts to address (that is also the main beneficiaries)?

3.5.2 Describe how these group(s) have been consulted in any form during or

before the preparation of this proposal? Describe the process and how their feedback

is used as input for the application?

3.5.3 Please describe the strategy of mainstreaming (including the

participation) of the vulnerable groups in the implementation of the proposed

grant project? What role will the vulnerable groups play in the project and

how will they benefit?

3.6 Perceived (potential) constraints / risks for grant project implementation:

Please indicate where you see potential difficulties in implementation and how you will

address them if possible. Discuss both internal as external factors that are a risk for the

successful realization of the grant project

Risk / Constraint Risk strategy or measures


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4. Target groups (maximum 2 pages)

4.1. Please explain the reasons for the selection of the target woredas? What

factors played a role in choosing these target woredas? (please note that the MA

considers grant applications targeting certain woredas more relevant than others. See section

2.5.2.5.3 in the Operational Manual)

4.2. Please explain the reasons for the selection of the target group(s) and how

you identified their needs and constraints. How does the grant project contribute to

the needs of the target group(s) and final beneficiaries? How do the beneficiaries play a role

in the project?

4.3. Describe your past working relationship with the regional authorities and

the local governments in the woredas you target with your activities. Have

woreda officials been consulted in the preparation of the grant application? How do you

plan to cooperate with them in the proposed grant project? How is their inclusion targeted

/ guaranteed? Is your cooperation formalized in a Letter of Commitment? If so, please

attach the Letters as documentary proof.


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5. Monitoring and Evaluation (maximum 2 pages)

5.1Describe your current M&E capacity in terms of human resources and

budget available(please clearly indicate M&E budget in the application’s budget)

5.2 Based on past experience, present how you would monitor the grant

project implementation (please include data collection exercises and reporting)

6. Sustainability and Multiplication (maximum 2 pages)

6.1 Describe how the project will achieve sustainability on the ground after the

project is ended. Indicate the mechanisms for long-term sustainability of the project

after the grant activity is completed.

6.2 As part of your sustainability strategy please describe the possibilities for

replication and extension of the project’s outcomes.


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Annex B

ESAP2 Logical Framework Format

Note for applicants: A LogFrame needs to be filled out to present the assessors with a clear

cause and effect matrix in which a clear overview of inputs, outputs and objectives is

presented (see also section 2.5.2.3). Below we shortly indicate our understanding of the

different sections which are reflected in the format. Please fill out the format below and

include this to your application.

Personnel;

Type of equipment;

Supplies.

Overall Objective: The overall objective of the grant application should be stated in

broad terms. Overall objectives represent achievements to which the project is intended

to contribute.

Specific Objective: The objectives will be specific to the proposed grant project and

state what the grant project itself is expected to achieve. The specific objective reflects the

utilization of the results below. The specific objective is the full responsibility of the

project, but only partly under control of the project (the part that is not under control is

what should be covered by the assumptions). What do you expect to happen as a result of

your proposed grant project? What will change? It is a description of the situation that

must be attained upon completion of the project. It is the situation in which the

problem(s) formulated in the field of accountability no longer exist. The objective should

be formulated positively, realizable in the given situation, concrete, verifiable and create

no new problems.

Results/Outputs: Results or outputs are products developed or services rendered

resulting from the activities performed leading to the achievement of the specific

objectives. Please detail all expected results/outputs and explain how they relate to the

objectives.

Activities: Include the title and a detailed description of each activity to be undertaken

to produce the results, justifying the choice of the activities and specifying where

applicable the role of each partner (or associates or subcontractors) in the activities. In

this respect, the detailed description of activities must not repeat the action plan (see

5.1).

Inputs: List the inputs required to carry out the project’s activities. Inputs can be

included in the form of:


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ive?

(ex

tern

al

con

dit

ion

s)

Wh

ich

ris

ks

sho

uld

be

tak

en

into

co

nsi

der

ati

on

?)

(Wh

at

exte

rna

l co

nd

itio

ns

mu

st b

e m

et t

o o

bta

in t

he

exp

ecte

d r

esu

lts

on

sch

edu

le?)

(Wh

at

pre

-co

nd

itio

ns

are

req

uir

ed b

efo

re t

he

pro

ject

sta

rts?

Wh

at

con

dit

ion

s

ou

tsid

e th

e b

enef

icia

ry's

dir

ect

con

tro

l h

av

e to

be

met

fo

r th

e

imp

lem

enta

tio

n o

f th

e

pla

nn

ed a

ctiv

itie

s?

So

ur

ce

s a

nd

me

an

s o

f

ve

rif

ica

tio

n

(Wh

at

are

th

e so

urc

es

of

info

rma

tio

n f

or

thes

e

ind

ica

tors

?)

(Wh

at

are

th

e so

urc

es

of

info

rma

tio

n t

ha

t

exis

t o

r ca

n b

e co

llec

ted

?

Wh

at

are

th

e m

eth

od

s

req

uir

ed t

o g

et t

his

info

rma

tio

n?)

(Wh

at

are

th

e so

urc

es

of

info

rma

tio

n f

or

ind

ica

tors

on

res

ult

s

ach

iev

ed?)

(Wh

at

are

th

e so

urc

es o

f

info

rma

tio

n a

bo

ut

act

ivit

y

pro

gre

ss?)

Ob

jec

tiv

ely

ve

rif

iab

le

ind

ica

tor

s o

f

ac

hie

ve

me

nt

(Wh

at

are

th

e k

ey

ind

ica

tors

rel

ate

d t

o t

he

ov

era

ll o

bje

ctiv

es?)

(Wh

ich

in

dic

ato

rs

clea

rly

sho

w t

ha

t th

e o

bje

ctiv

e

of

the

pro

ject

ha

s b

een

ach

iev

ed?)

(Wh

at

are

th

e

ind

ica

tors

to

mea

sure

wh

eth

er a

nd

to

wh

at

exte

nt

the

pro

ject

ach

iev

es t

he

exp

ecte

d

resu

lts/

ou

tpu

ts?)

(W

ha

t a

re t

he

ind

ica

tors

to m

easu

re t

o w

ha

t

exte

nt

the

pro

ject

ach

iev

es t

he

exp

ecte

d

act

ivit

ies?

)

Inte

rv

en

tio

n l

og

ic

(Wh

at

is t

he

ov

era

ll b

roa

der

ob

ject

ive

to w

hic

h t

he

pro

ject

wil

l co

ntr

ibu

te?)

(Wh

at

spec

ific

ob

ject

ive

is

Th

e p

roje

ct i

nte

nd

ed t

o

ach

iev

e to

co

ntr

ibu

te t

o

the

ov

era

ll o

bje

ctiv

e?)

(Th

e re

sult

s a

re t

he

pro

du

cts

or

serv

ices

ren

der

ed

resu

ltin

g f

rom

th

e a

ctiv

itie

s

per

form

ed e

nv

isa

ged

to

ach

iev

e th

e sp

ecif

ic o

bje

ctiv

e.

Wh

at

are

th

e ex

pec

ted

resu

lts?

(en

um

era

te t

hem

)

(Wh

at

are

th

e k

ey a

ctiv

itie

s to

be

carr

ied

ou

t a

nd

in

wh

at

seq

uen

ce i

n o

rder

to

pro

du

ce

the

exp

ecte

d r

esu

lts/

ou

tpu

ts?

(gro

up

th

e a

ctiv

itie

s b

y

resu

lt)

(Per

son

nel

; T

yp

e o

f eq

uip

men

t;

Su

pp

lies

; et

c.)

Ov

er

all

Ob

jec

tiv

e

Sp

ec

ific

Ob

jec

tiv

es

Ex

pe

cte

d R

es

ult

s /

Ou

tpu

ts

Ac

tiv

itie

s

Inp

ut


91 /234

Annex C

ESAP2 Action Plan Format

General guidelines:

Please add more lines if needed (select the line above which you would like to add a line,

click on the right mouse button and "insert")

If you want to merge celles, please click on the right mouse button and go to "format

cells", choose "alignment" and therein "merge cells"

Specific objectives and outputs cannot be changed. If an activity is cancelled, choose the

option "cancelled" in the status report and explain why in column K. Do not delete an

activity.

If you would like to add other activities, please do so and add an N (for new) after the

number (e.g. Activity 1.1.7 N). If the activity is directly linked to another please present as

follows: 1.1.2a N


92 /234

Imp

ort

an

t ob

serv

ati

on

s

If d

ela

yed

o

r ca

nce

lled

, p

lea

se

exp

lain

w

hy

Sta

tus

as

per

3

1/0

3/

20

14

Sta

tus

as

per

3

1/12

/ 2

013

Sta

tus

as

per

3

0/0

9/2

013

Sta

tus

as

per

3

1/0

6/

20

13

Sta

tus

as

pe

r

31/0

3/

20

13

Sta

tus

as

per

3

1/12

/20

12

Ma

in

resp

on

sib

le

act

ors

Lea

d

CS

O,

pa

rtn

er

Org

rg

Dea

dli

ne

for

imp

lem

en

tati

on

(dd

/mm

/yy

)

Tim

efra

me

for

imp

lem

en

tati

on

(dd

/mm

/yy

)

Act

ivit

ies

to

ach

iev

e O

utp

ut

1.1.

1 (P

lea

se

spec

ify

a

ctiv

ity

h

ere

1.1.

2…

1.1.

3

1.1.

4

1.1.

5

1.1.

6

1.2

.1

1.2

.2

1.2

.3

1.2

.3

1.2

.4

1.2

.5

1.3

.1

1.3

.2

1.3

.3

1.4

.1

1.4

.2

1.4

.3

1.4

.4

1.4

.5

Ou

tpu

ts/R

esu

lts

to a

chie

ve

spec

ific

o

bje

ctiv

es

1.1

(P

lea

se

spec

ify

ou

tpu

t to

rea

ch t

he

spec

ific

ob

ject

ive

1

her

e)

1.2

1.3

1.4

Sp

ecif

ic

Ob

ject

ive

to

be

ach

iev

ed

Sp

ec

ific

Ob

jec

tiv

e

1:(

Ple

ase

sp

ecif

y

the

spec

ific

ob

ject

ive

1

her

e)


93 /234

Imp

ort

an

t ob

serv

ati

on

s

If d

ela

yed

o

r ca

nce

lled

, p

lea

se

exp

lain

w

hy

Sta

tus

as

per

3

1/0

3/

20

14

Sta

tus

as

per

3

1/12

/ 2

013

Sta

tus

as

per

3

0/0

9/2

013

Sta

tus

as

per

3

1/0

6/

20

13

Sta

tus

as

per

3

1/0

3/

20

13

Sta

tus

as

per

3

1/12

/20

12

Ma

in

resp

on

sib

le

act

ors

Dea

dli

ne

for

imp

lem

en

tati

on

Tim

efra

me

for

imp

lem

en

tati

on

Act

ivit

ies

to

ach

iev

e O

utp

ut

2.1

.1

2.1

.2

2.1

.3

2.2

.1

2.2

.2

2.2

.3

2.2

.4

2.3

.1

2.3

.2

2.3

.3

3.1

.1

3.1

.2

3.1

.3

3.2

.1

3.2

.2

3.2

.3

3.2

.4

Ou

tpu

ts/R

esu

lts

to a

chie

ve

spec

ific

o

bje

ctiv

es

2.1

2.2

2.3

3.1

3.2

Sp

ecif

ic

Ob

ject

ive

to b

e a

chie

ve

d

Sp

ecif

ic

Ob

ject

ive

2…

Sp

ecif

ic

Ob

ject

ive

3…


94 /234

Annex D ESAP2 Budget Application Format

Budget Format

Project Title

Grant Applicants

1.

2. (if applicable)

3. (if applicable)

4. (if applicable)

Expenses

Units of Measurement

(fee days, tickets, price

etc)

Total

units

Unit

rate ETB

Total

Cost ETB

1. Services - Human Resource

1.1 Staff Salaries

1.1.1 Program Staff

1.1.1.1 Project Coordinator Months 0

1.1.1.2 Social Accountability Expert Months 0

1.1.1.3 M&E Expert Months 0

1.1.2 Support Staff

1.1.2.1 Project Accountant Months 0

1.1.2.2 Procurement Officer Months 0

1.1.2.3 Driver Months 0

Subtotal 1.1 - Staff Salaries 0

1.2 Consultancy Service

1.2.1 Social Accountability Trainer Days 0

1.2.2 Consultant for Development of SA Tools Days 0

1.2.3 Consultant for mid and final evaluation Days 0

1.2.4 ………….. ….. 0

Subtotal 1.2 - Consultancy Service 0

Subtotal 1. Service - Human Resource 0


95 /234

2. Goods

2.1 Furniture

2.1.1 Office table Pcs 0

2.1.2 Office chair Pcs 0

2.1.3 ….. ….. 0

2.2 Equipment

2.2.1 Desktop Computer Pcs 0

2.2.2 Printer Pcs 0

2.2.3……. …. 0

2.3 Office supplies

2.3.1 Stationary supplies Pcs 0

2.3.2 Consumable supplies (refreshment,

detergents, etc) Pcs 0

2.3.3…….. ….. 0

Subtotal 2. Goods 0

3. Monitoring and Evaluation

3.1 Travel

3.1.1 Travel costs 0

3.1.2………….. 0

0

0

3.2 Per Diem

3.2. Per diem 0

0

0

3.3 Audit Costs

3.3.1. Audit Report Costs 1 0



Subtotal 3. Monitoring and Evaluation 0

4. Program Deliveries / Activities


96 /234

4.1 Trainings

4.1.1 Training 1 (use the 'Detailed

Training Sheet' for calculations) Training 0

4.1.2 Training 2 (use the 'Detailed

Training Sheet' for calculations) Training 0

4.1.3 ….. Training 0

4.2 Research and Surveys

4.2.1 Survey on … Survey 0

4.2.2 Assessment on …… Assessment 0

4.2.3 …… 0

Subtotal 4. Program Deliveries / Activities 0

5. Direct Operational Costs*

0

0

0

Subtotal 5. Direct Operational Costs 0

6. Total Direct Costs (1-5) 0

7. Provision for Contingency (5% of Total Direct Costs) 0

8. Administrative Costs (7% of Total Direct Costs) 0

9. Total Project Costs (6+7+8) in ETB 0

10. Exchange Rate ETB to USD of <insert date of exchange rate used>** 0

11. Total Project Costs in USD** 0


97 /234

Detailed Training / Workshop Sheet

Project Title

Grant Applicants

1.

2. (if applicable)

3. (if applicable)

4. (if applicable)

Expenses Unit Costs Participan

ts / Units

Number

of Days Amount

Training/Workshop 1

Lunch -

Refreshment -

Per diem -

Transportation -

Training Hall Rent -

Training Materials and supplies -

Subtotal Training / Workshop 1 -

Training/Workshop 2

Lunch -

Refreshment -

Per diem -

Transportation -




Training / Workshop 3

Lunch -

Refreshment -

Per diem -

Transportation -





Lunch -

Refreshment -

Per diem -

Transportation -





98 /234


Lunch -

Refreshment -

Per diem -

Transportation -





Lunch -

Refreshment -

Per diem -

Transportation -




Notes:

Please use this sheet to calculate the costs for a training of workshop. The subtotal amount

per training or workshop needs to be inserted in the Budget Format (section 4. Program

Activities / Deliverables). Make sure to add this sheet to the Budget when submitting your

grant application. In case you are planning more than 6 activities, add the cells to the format.


99 /234

Staffing Schedule

Project

Title

Grant

Applicants

1.

2. (if applicable)

3. (if applicable)

4. (if applicable)

Number Name Position

Benefits Total

Earnings

% of

Contribution Salary PF/Pensi

on Transpiration Insurance Others


100 /234

Budget Note

Project Title

Grant Applicants

1.

2. (if applicable)

3. (if applicable)

4. (if applicable)

Applicants are required to describe how they arrive at the unit costs proposed in the budget

for each budget item given

1. Personnel:

Salary:

Benefit:

2. Monitoring and Evaluation

Travel

Per diem

3. Equipment and Supplies

Equipment

Supplies

4. Program Delivery

Training

Surveys

Annex E: ESAP2 Application Partnership Statement

101 /234

Annex E

ESAP2 Grant Application Partnership Statement

Note for applicants: This format only needs to be submitted when a grant application is

submitted by a partnership.

A partnership can exist of maximum four (one lead organization and three partners) and

entails a relationship of substance, involving shared responsibilities in undertaking the

ESAP2 project funded by the World Bank out of the MDTF. To ensure that the project runs

smoothly, the MA requires all partners to acknowledge this by agreeing to the principles of

good partnership practice set out below. All partners must be legally registered with the

Government of Ethiopia. An organization can only apply with one application.

Each partner needs to fill out and sign the format below. All complete and signed statements

need to be included in the application.

Partnership statement

1. All partners have read the grant application and have understood what their role in the

project will be before the application is submitted to the MA.

2. All partners have read and understood the ESAP2 grant contract format and authorize

the lead applicant to sign the contract with the MA and represent them in all dealings

with it in the context of the project's implementation.

3. The lead applicant will consult its partners regularly and will keep them fully informed

on the progress of their ESAP2 project.

4. All partners will receive copies of the reports - narrative and financial – that are

submitted to the MA.

5. Proposals for substantial changes to the project (e.g. activities, partners, etc.) will be

agreed by the partners before being submitted to the MA. Where no such agreement

can be reached, the applicant must indicate this when submitting changes for approval

to the MA.

6. All partners agree to have a Memorandum of Understanding (MOU) with the lead

applicant to formally share and acknowledge roles and responsibilities as far as the

implementation of the proposed ESAP2 project is concerned.

I have read and approved the contents of the proposal submitted to the Management Agency.

I undertake to comply with the principles of good partnership practice.

Annex E: ESAP2 Application Partnership Statement

102 /234

Partner #

Full legal name

(business name)

Official address

Name authorized person

Position authorized person

Telephone number

Signature and stamp

Date and place

Application submitted in

partnership with:

(Name partner organization 2)

(Name partner organization 3, if applicable)

(Name partner organization 4, if applicable)

History of cooperation with the

other partner organization(s)

Role and involvement in the

preparation of the grant project

Proposed role and involvement in

the implementation of the grant

project


103 /234

Annex F

ESAP2 List of Woredas of Particular Relevance

Note for applicants: As indicated in section 2.5.2.5, grant applications that target certain

woredas are considered to be of particular relevance to ESAP2. This implies that the

targeting of these woredas with your activities will be assessed with more points on the

variable of relevance of the target area, which can result in a better ranking and thus an

increased chance of being pre-selected for contracting. Grant projects that target any of the

following woredas will score higher on the evaluation criterion of ‘relevance of the target

area’:

‘Hot Spot’ woredas or those at strategic locations with high potential for snowballing the

demonstration effect to neighboring woredas and ability to serve as the center in a cluster-

based approach.

Below, the list of woredas that qualify under bullet 1-3 is presented. Assessment of

qualification under bullet 5 is up to the evaluators, based on the justification of the grant

applicant for the choice of the target woreda.

Woredas that were target woredas in pilot projects implemented under ESAP1;

Woredas with significant service deficiency /deprivation levels, based on state data;

Woredas where PBS Local Investment Grants (LIGs) have been implemented;

Woredas located in the emerging regions (Afar, BenishangulGumuz, Gambella, Somali)


104 /234

ESAP1 woredas

Region woredas

Addis Ababa City

Administration

Addis Ketema

Sub City

Arada Sub City Kirkos Sub City Ledeta Sub City Nefas Silk Lafto

Sub City

Amhara Regional

State

Bahir Dar

Town

Bure Dangela DebreMarkos Ephrata Gidem

Farta Metema NefasMewchia

BenishangulGumuz

Regional State

Asosa town Dangur Kambashi Mandura Menge

Dire Dawa City

Administration

Kebele 02 Kebele 03 Kebele 05 Kebele 08

Harari Regional State Hakim Sofi

Oromia Regional

State

Agaro Alle Becho Bedele Bishoftu

Chewaka Dandi Dawo Degem Dugda

Ejere Fedis Fental GebreGuracha Ghimbi

Girja Goma Haromaya Hurumu Jarso

Jimma town Kersa (around

Hararghe)

Kersa (around

Jimma)

Kombolcha Legehida

Mettu Mulo Sawula Sebeta SebetaHawas

SedenSodo SekaChekorsa Shalla (Aye) Shashemene Welmera

Woliso Wuchalle Yayo ZewayDugda

Somali Regional State Aisha Shinele

Southern Nations and

Nationalities People

Regional State

(SNNPRS)

Chencha Ghibe Hawwasa Town Limu Male

Misha

Tigray Regional State Ahferom Alamata Dugda

Tembein

Genta

Haffeshom

GuloMekeda

KaftaHumera KeltelteAwealo Kola Tembein MedebayZana Mekele

MerebLeke Raya Azebo ShartiSamre Tahatay,Maichew WerieLeke


105 /234

Local Investment Grant woredas

Region woredas

Afar National

Regional State

Buremudaitu Dalifage Dewe Dulecha

Amhara National

Regional State

Bahir Dar Zuria Debaytilatgin East Belesa Enemay Guangua

Habru JileTumuga Kellala Kewet Lasta

Machakel MenizLaloMidir Sayint Sekela TachGaynt

Tenta Wegera Zekuala

BenishangulGumuz

National Regional

State

Agalometi Mandura Maokomo OdaBigildu

Gambella National

Regional State

GambellaZuria Wantwa

Harari National

Regional State

Dire Teyara Errar

Oromia National

Regional State

Abaya Abe Dengoro Anchar Aseko Nesebo

BakoTibe Becho Berek BulieHora Chora

DabreLibanos Dano Dawo Dedo Dega

Degam Ejere Elu Fentale GedabAsasa

GidaAyana Gimbi GoroGutu GudatuKondala JarteJardega

JimmaHoro Jimma Rare Kiltu Kara KurfaChale Lume

MadaWalabu Masala OdoShakiso Rayitu Sibu Sire

TiroAfeta Tiyo Wadara YemalogiWalal

Somali National

Regional State

Harshin

Southern Nations,

Nationalities

People Regional

State

Angelcha Arbegona Burji E/Badawacho Ejaha


106 /234

Gedeb Gimbo Kebena Kemba KindoDidaye

Konta Mareko Masha Menjewo Lanfaro

Loma Ofa OubaDebreTs

ehai

Salamago Sankura

Shasha Shebedino South Bench West

BadaWacho

Tigray National

Regional State

EndaMehoni

Gulomekeda Kola Temben MedebayZena Wolkayit


107 /234

Service Deprived woredas

Region woredas

Addis Ababa City

Administration

Woreda 03 of

Arada SC

Woreda 07 of

Addis Ketema SC

Woreda 05 of

Ledeta SC

Woreda 11 and

10 of Kirko SC

Woreda 04 of Yeka SC

Woreda 04 of

Bole SC

Woreda 06 of

Akaki-Kality SC

Woreda 06 of

Nefas Silk SC

Woreda 01 & 02

of Kolfe-Keranyo

SC

Woreda 06 of Gulelle

SC

Afar National

Regional State

Abaala Adaar Afambo Afdera Amibera

Awash Fentale Awra Berahile Chifra Elidaar

Gelaelo Gulina Hadelela SemuRobi Teru

Amhara National

Regional State

AdiArkay Aneded Asagrot Bahir Dar

Ketema

Bahir Dar Zuria

BatiKetema Beyeda Bibugnv Bure Borena

ChagniKetema Chilga Dalanta Debark Debrebirhan

Ketema

Debre Tabor DebubAchefer DegaDamot Dembecha Denbiya Ketema

Dera DessieKetma Ebnat Enjibara

Ketema

FenoteSelam

Ketema

Fogera GonderKetema GonjKolela Janamora Jawi

Kalu Kemise

Ketema

Kombolcha

Ketema

Legehida Libo

Kemekem

Menz Mama

Mider

MerabBelesa Merab Este Minjar and

Shenkora

Raya Kobo

SehalaSeyemt SekotaKetema Senan Tegede Mecha

Woldiya Wonberima WoretaKetema

BenishangulGumuz

National Regional

State

Dangur Guba Kamashi Kurmuk Sirb Abaya

Sherkole Wembera

Dire Dawa City

Administration

Biyo Awale

Cluster

Geldessa Cluster Kebele 01 Kebele 02 Kebele 05

Kebele 08 Melaka Jebdu

Cluster

Wahil Cluster

Gambella National

Regional State

Abol Godere Mezhenger

Harari National

Regional State

Abadir Shenkor Sofi


108 /234

Oromia National

Regional State

Abaya AbunaGindabarat Ada'aBarga Adaba Agarfa

AlgeSachi Ambo Aminya Ammaya Ana Sora

Anfilo Arero ArsiNagelle Babile BaboGambel

Badanno Bale gasgar Barbare Begi Boracha

Bore Bosat BurqaaDhiintuu Cinaksen Ciro

Cora Botor Dadar Dale wabara Dara Darimu

DaroLabu DaweQacan DaweSarar Dhas Dhidhesa

Didu Dillo Dire Doba DugdaDawa

Fadis GadabAsasa Galana Gamachis Ganji

Gasara GawoQebe Gera Gindabarat Gindhir

Gidami Girawa Girja GolaOda Gololcha (Arsii)

Gololcha (Bale) Goma Goro GubaQoricha Gumay

Guradhamole Gursum GutoGida Habro HambalaWamana

Harana HaroLimu Haromaya HawiGudina Hawwa Galan

Jaldu Jarso (East

Hararge)

Kiramu Kofale Kokosa

Kombolcha Kuyu Lagahidha LaloQile LeqaDullacha

LibanCuqala Liban (Guji) Limu LimuBilbilo LimuKosa

LimuSaqa Mako MalkaBalo Mana (Jima) Manasibu

Matu MayuMuluqe Mena (Bale) Meta MidaQanyi

Midhaga Mi’esoo Miyo Mooyyaale Munesa

Najo NonoBenja NunnuQumba Omo Nada Qarca

Qarsa Qilxu Kara Qore Qumbi Quni

SaqaCoqorsa sal'eNono Sawena Saxamma Sayo

SayoNole Seru Shabesombo Shala Shirka

Sigimo Siraro Sude Taltale Wondo

XiroAfata

Xulo Yabalo

Somali National

Regional State

Adadilo Danan Degehamedo Dhobowayn Fiika

Shekosh Warder

Southern Nations

and Nationalities

People’s Regional

State (SNNPR)

Alle Andracha Aroresa Basketo Bita

Bonke Bule Chirie Dalocha DamotPulasa

Dita DugunaFango

Endegagn GedebanoGuta Geta

Gibe Duna Gorchie Hadaro Tinto Humbo Isara

Kachabira Konso Male Malokoza Mareka

MeintGoldya MirabAzernet Nyangatom Saylem Semen Ari

Shat Bench Tambaro Tello Wonsho

Tigray National

Regional State

Ahferom DegaTembein Gulomhaya KetemaMekele Raya Zebo

Werielehe

Annex G: ESAP2 Eligibility and Administrative Requirements Grid

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Annex G

ESAP2 Eligibility and Administrative Requirements Grid

Note for applicants: Please note that failure to meet the eligibility and administrative criteria

immediately results in a rejection of the application. Check carefully, with the use of this

annex, whether your application meets all criteria.

Eligibility Requirements

The lead applicant is a legal entity established for not for profit motives and

is registered with the Government of Ethiopia as an Ethiopian Charity or

Society or an Ethiopian Residents Charity (and documentary proof of this is

provided).

Y/N

(If applicable) All partners in the application are legal entities established

for not for profit motives and are registered with the Government of

Ethiopia as Ethiopian Charities or Societies or Ethiopian Residents

Charities(and documentary proof of this is provided).

Y / N / Not

Applicable

The application targets at least two sectors Y / N

The application targets a minimum of 3 and a maximum of 5 woredas Y / N

Per woreda, the application targets a minimum of 3 kebeles Y / N

The application budget does not exceed the indicated maximum amount of

$237,000 for applications targeting 3 woredas, of $269,000 for applications

targeting 4 woredas or $300,000 for applications targeting 5 woredas

Y / N

Annex G: ESAP2 Eligibility and Administrative Requirements Grid

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4Please note that in case Letters of Commitment are available from target woredas, you are encouraged to enclose them in your application. Inclusion of Letters of Commitment is not an administrative requirement.

Administrative Requirements

The application is received by the MA before the closing date and time of this

Call for Proposal

Y/ N

The application is submitted in the formats annex to this Operational Manual Y / N

The Application is written in English Y / N

The application is typed Y / N

The application submitted is

complete, meaning that it

consist of:4

ESAP2 Grant Application Y / N

Supporting document of legal registration

with the Government of Ethiopia of all

partners submitting the application

Y / N

ESAP2 Logical Framework Y / N

ESAP2 Action Plan for your Grant Project Y / N

ESAP2 Budget

Application,

existing of the

following four

sheets:

Budget Format Y / N

Detailed Training Sheet Y / N

Staffing Schedule Y / N

Budget Note Y / N

(if applicable) ESAP2 Grant Application

Partnership Statement signed by all

partners for this application (see annex E)

Y / N

The application submitted consists of one original (signed with an

original signature by an authorized representative) and two copies of

the complete application, as well as one electronic copy on a CD or USB

stick.

Y / N


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Annex H

ESAP2 Grant Application Evaluation Grid

Note for applicants: Please note that when submitting an application in partnership with

other organizations, the evaluation of the financial capacity is to a large extent based on the

capacity of the lead applicant. The lead applicant will be the contract signatory for the MA

and is thus responsible for (financial) management of the grant towards the MA. Sufficient

management, administrative and financial capacity of the lead applicant to manage and

administrate the grant project is thus important.

Grant Application Evaluation Grid Score

Awarded

Maximum

Score

1. Organizational Capacity

1.1 Operational Capacity 15

Is there an operational organizational structure proposed for the grant

project with clear roles and responsibilities?

4

Is there an operational (and partnership, where applicable) strategy to

support the successful implementation of the grant application?

2

To what extent are the technical skills of the staff of the applicant(s)

sufficient to successfully operate in the field of social accountability

and to manage and implement the grant project?

2

To what extent are crosscutting issues, such as gender and social

inclusion reflected in the applicant(s)’ management structure and

strategies?

2

To what extent is/are the applicant(s) embedded in the Ethiopian

society? (are there sufficient and effective relations and networks with

partners, donors, and local government)

1

Does the applicant provide strategy(ies) that clearly show how it

designs the capacity development for its staff, other stakeholders

and/or partners for better operationalization of Social Accountability

activities in the proposed locations?

4


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1.2 Financial Capacity 5

Does the lead applicant have project and financial management capacity? 2

Does the lead applicant state to have an audited annual statement? (to be

verified with the FinCapAssessment)

1

Does the lead applicant have stable and sufficient sources of finance? 1

To what extent does the applicant(s) fulfil minimum staff requirements,

which ensure the existence and execution of accounting procedures and

proper financial management?

1

1.3 Expertise and Experience 5

Do(es) the applicant(s) have a track record with other donor

organizations on implementation and management of similar size

projects / activities and/or relevant sectors and have achieved tangible

results?

3

Do(es) the applicant(s) have a track record of previous work in the

proposed woredas?

2

Total Score of Organizational Capacity 25

2. Quality of the Application Score

Awarded

Maximum

Score

2.1 Quality of the Project Design 10

To what extent is a specific strategy on addressing, including and

mainstreaming socially excluded groups like women, children, people

living with HIV and AIDS, people with disabilities, and the elderly

included in the grant application?

2

To what extent is the methodology to achieve the anticipated objectives

successfully described?

2

To what extent is the project goal clearly formulated, addressing the core

problem and expressing the impact of the project on the beneficiaries?

2

Is the partners' level of involvement and participation in the project

satisfactory?

1


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How well does the applicant encourage dialogue and interface between

Communities, CSOs, Public Service providers/local governments and

other stakeholders?

1

To what extent is a clear monitoring and evaluation plan included in the

application?

1

To what extent does the application propose appropriate SA-

tools/approaches

1

2.2 Relevance 20

To what extent is the application relevant to the objectives of ESAP2?

(Does the grant project contribute to strengthening the use of social

accountability tools, approaches and mechanisms by citizens and citizens

groups, civil society organizations, local government officials and service

providers as a means to make basic service delivery more equitable,

effective, efficient, responsive and accountable)?

6

To what extent does the choice of the target sector correspond with the

needs of the target beneficiary and target area?

4

To what extent is the choice of the target woredas relevant for ESAP2? (see

also the section 2.5.2.5 on higher relevance)

3

Does the application target the sectors rural roads or agriculture? (see also

the section 2.5.2.5.2 on higher relevance)

4

Is the application submitted in partnership, with a clear capacity building

strategy? (see also the section 2.5.2.5.1 on higher relevance)

3

2.3 Feasibility 10

To what extent are the formulated objectives and results reachable? 2

To what extent have the beneficiaries been involved in the planning

and development of the project?

2

Are the activities proposed appropriate, practical, and consistent with the

objectives and expected results?

1

Is the timeframe for implementation of activities and achieving the

anticipated results realistic?

2


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To what extent has the applicant established an effective partnership,

cooperation and/or institutional linkage with targeted groups (citizens,

citizens’ groups, other CSOs)?

1

To what extent has the applicant established an effective partnership,

cooperation and/or institutional linkage with the woreda officials of the

target areas? Are letters of commitment from the target woreda available

(and attached)?

2

2.4 Impact 10

Is the outcome/result of the project clear? 3

Is the project likely to have a tangible impact on implemented woreda /

kebele communities on basic service delivery in the targeted sectors of

ESAP2?

3

How did this project change beneficiaries’ lives and opportunities, also for

socially excluded groups?

2

Would the proposed activity have influence beyond its aims, directly or

indirectly, intended or unintended?

2

2.5 Sustainability

10

To what extent are lasting benefits of this project expected after the end of

implementation?

2

Are the expected results of the proposed action plans financially

sustainable (how will the activities be financed after the funding ends?)

2

Are the expected results of the proposed action plans institutionally

sustainable (will structures allowing the activities to continue be in place

at the end of the action and how? Will there be local “ownership” of the

results of the action?)

2

Are there key partnerships with other civil society organizations, service

providers, woreda officials that will help sustain the project?

2

Is it likely that the grant project has multiplier effects or spin-offs? 2

Total Score of Quality of the Application 60


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3. Logical Framework

Is the specific objective to which the project contributes single and well

defined?

2

Are the outputs for achieving the objective necessary and clearly stated? 2

Is the relationship between the activities and outputs realistic? 2

Does the relation between inputs, outputs and objectives show a clear

cause and effect logic?

2

Are assumptions realistic & showing understanding of country / sector? 1

Are indicators objectively verifiable in terms of quantity, quality and

time?

1

Total Score on Logical Framework 10


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4. Budget

Are the activities appropriately reflected in the budget? 2

Is the budget coherent and realistic for achieving the anticipated results? 2

Are the costs expressed in the budget fair, reasonable and related to the

proposed project activities?

1

Total Score on Budget

5

Scores for Organizational Capacity and Relevance Applicant

Score

Eliminatory

Score

Organizational Capacity 12.5

Relevance 10

Pass Y/N

Total Score of the Application

1 – Organizational Capacity 25

2 – Quality of Application 60

3 – Log frame 10

4 – Budget 5

Total Score 100


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Annex I

ESAP2 Grant Agreement

Sub-grant agreement

Ref. ESAP2/2013/-------

Special Conditions

(the "Management Agency"),of the one part, and

Name of the Organization

Registration number with the Charities and

Societies Agency

Registration Date

Address

Telephone

Fax

E-Mail

Name of Authorized Representative

Name Cooperation VNG International U.A.

Address Nassaulaan 12, 2514 JS The Hague,

The Netherlands

Telephone +251 11663 4661 or +251 11663 4601

Fax +251 11663 2567

E-mail [email protected]

Represented by Mr. Peter Knip, Director

Management Agency Representative Rolf Hunink, Team Leader of ESAP2



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Title

(the "SAIP"), of the other part have agreed as follows :

Article I: General Conditions, Definitions and Annexes

1.01. General Conditions. The General Conditions for Sub-Grants made by the

Management Agency (“General Conditions”) constitute an integral part of this

Agreement.

1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in

this Agreement have the meanings ascribed to them in the General Conditions or in

this Agreement, and the following additional terms have the following meaning:

(a) “Ethiopia Protection of Basic Services Social Accountability Program” or “the Program” means Ethiopia’s social accountability program consisting of a program of interrelated action, measures and instruments adopted or entered into by the government of Ethiopia, with the aim to strengthen the use of accountability tools, approaches and mechanisms in Ethiopia by: (i) citizens and citizen groups; (ii) civil society organizations; (iii) local government officials; and (iv) service providers as a means to make basic service delivery more equitable, effective, responsive and accountable.

(b) “Ethiopia Social Accountability Program – Phase 2” or “ESAP2” means the set of activities carried out by the Management Agency in respect of promoting social accountability under the above defined Program, and under the terms set forth in the Grant Contract No. TF099878, signed between the Management Agency and the World Bank.

(c) “Management Agency”, or “MA”, means the consortium consisting of VNG International, GOPA Consultants and YEM Consulting Institute, lead by VNG International and represented and operating in Ethiopia through its branch office "VNG International B.V Plc”, appointed as recipient of an amount to be provided under the aegis of the World Bank for the furtherance of the activities to be carried out under the Ethiopia Protection of Basic Services Social Accountability Program.

(d) “Grants for Sub-projects” or “Grant” means the grants provided by the Management Agency for the implementation of a Sub-Project.

(e) “SAIP” or “SAIPs” means the social accountability implementing partner for the benefit of which a Grant for Sub-project is provided.

(f) “Sub-grant Agreement” or “Agreement” means the agreement entered into between the Management Agency and a selected SAIP for implementation of a Sub-project.

(g) “Sub-project” or “Project” means the initiative to be implemented by a selected SAIP for the purposes of strengthening citizens and/or civil society organizations’ capacity for, and the use of, social accountability tools, approaches and mechanisms to ensure more effective, efficient, responsive and accountable basic services by local public service providers, as described in further detail in the approved Grant Application, Annex 1A of this Agreement.


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1.03. Annexes. The following documents are annexed to these Special Conditions and

form an integral part of the Agreement:

Annex 1A: Approved ESAP2 Grant Application (including the Negotiation Memo)

Annex 1B: Approved ESAP2 Grant Application’s Logical Framework

Annex 1C: Approved ESAP2 Grant Budget

Annex 2: General Conditions applicable to ESAP2 Sub-grant Agreements

Annex 3: SAIP Operational Manual

Article II: Sub-project Execution

2.01. Sub-project Objectives and Description. The objectives of the Sub-project and

the Sub-project activities to be financed out of the proceeds of the Grant are as set

forth in Annexes 1A to 1C to this Agreement.

2.02. Sub-project Execution Generally. The SAIP declares its commitment to the

objectives of the Sub-project. To this end, the SAIP shall carry out the Sub-project in

accordance with: (a) the provisions of Article 2 of the General Conditions; (b) this

Article II; and (c) the SAIP Operational Manual.

2.03. Implementation Period of the Sub-project.

(a) The starting date of the Sub-Project is:--------------------------------. (b) The implementation period of the Sub-project is 24 months. (c) The end date of the Sub-Project is: --------------------------------.

2.04. Project Deliverables.

(a) The SAIP shall provide the Management Agency with all reports, narrative or financial, and other required documents (each a “Deliverable”) to be developed for the Sub-project as described in section 3.3 of the SAIP Operational Manual, in electronic and printed format.

(b) The deadlines for submitting Narrative Reports, Financial Reports and Audit Report are stipulated in the table below.

Reporting Schedule for the SAIPs

Deadline for

submission of Report

to the MA Reporting Period Report Required to Submit to the MA:

20 October 2013 1 October – 31 December 2013 Quarter one Forecast Request

15 January 2014

1 October – 31 December 2013 Quarterly Narrative Report &

Quarterly Financial Report

1 January –31 March 2014 Quarter two Forecast Request


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15 May 2014

1 January – 31 March 2014 Quarterly Narrative Report &


1 April- 30 June 2014 Quarter three Forecast Request

1 October 2013- 31 March 2014 Audit report 1

15 July 2014

1 April- 30 June 2014 Quarterly Narrative Report &


1 July – 30 September 2014 Quarter four Forecast Request

15 October 2014

1 July – 30 September 2014 Quarterly Narrative Report &


1 October – 31 December 2014 Quarter five Forecast Request

15 February 2015

1 October – 31 December 2014 Quarterly Narrative Report &


1 January – 31 March 2015 Quarter six Forecast Request

1 April - 31 December 2014 Audit 2

15 April2015

1 January – 31 March 2015 Quarterly Narrative Report &


1 April- 30 June 2015 Quarter seven Forecast Request

15 July 2015

1 April- 30 June 2015 Quarterly Narrative Report &


1 July - 30 September 2015 Quarter seven forecast

15 October 2015 1 July - 30 September 2015

Quarterly Narrative Report &


15 November 2015 1 October 2013- 30 September

2015 Final Narrative Report & Final

Financial Report

1January – 30 September 2015 Audit Report 3

2.05. Financial Management.

Financial Management.

(a) The SAIP shall ensure that a financial management system is maintained in accordance with the provisions of Article17 of the General Conditions and section


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4 of the SAIP Operational Manual.

The SAIP shall ensure that the Quarterly Financial Reports for the Sub-project are

prepared and furnished to the Management Agency in accordance with the schedule

presented in 2.04(b), following the templates and formats provided in the SAIP

Operational Manual.

The SAIP shall have its Project Financial Statements verified in accordance with the

provisions of section 3.3and annex Rof the SAIP Operational Manual. Such

verification of the Project Financial Statements (Audit Report) shall cover the periods

as stipulated in 2.04(b) of this Agreement and shall be furnished to the Management

Agency in accordance with the schedule presented in 2.04(b).

2.06. Procurement.

All goods and services required for the Sub-project and to be financed out of the

proceeds of the Grant shall be procured in accordance with the requirements set forth

or referred to in section 4 of the SAIP Operational Manual.

Article III: Payment Arrangements

3.01. Currency and currency conversion.The currency of the Agreement is in United

States Dollars (USD). Quarterly Financial Reports, the Final Financial Report and the

Audit Reports shall however be drawn up in Ethiopian birr (ETB). SAIPs need to

account for the actual amount of birr received as advance payments from the

Management Agency in the framework of their Sub-project. The Management Agency

will use the actual exchange rate of the transfer of the advance payment, based on the

SAIP’s bank statement, to establish the USD amounts of the Quarterly Financial

Reports and the Final Financial Report.

3.02. Total amount of the Grant.The total estimated cost of the Sub-project,

representing the maximum amount for reimbursement by the Management Agency

for the Sub-project’s activities to be financed out of the proceeds of the Grant is

___________________USD________________________ as set out in

Annex 1C.

3.03. Conditions for advance payment. The SAIP must ensure that the conditions

described in the provisions of Articles 3 and 15 of the General Conditions, section

3.3.1, 3.3.2, 4 and 5 of the SAIP Operation Manual, sections 2.04 and 2.05 of this

Agreement and this section are fulfilled, before submitting a request for an advance

payment.

3.04. Special conditions for advance payment. For the purpose of this Agreement,

additional payment conditions are:

Pre-condition(s) for a first Advance Payment:

(i) Recruitment of a qualified Finance Officer

(ii) Participation in the Grants and Finance pre-disbursement trainings

(iii) Submission of a renewed license/certificate with the Charities and

Societies Agency of all partners or proof of the ongoing renewal process


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(iv) Submission of Audit Report for the year ending 31/12/2011

(v) Memorandum of Understanding between the lead SAIP and its partners (if applicable)

(vi) Procurement Plan;

Pre-conditions(s) for second Advance Payment:

(i) Participation in the SA and M&E pre-disbursement trainings

(ii) Recruitment of an M&E officer

(iii) Submission of a revised acceptable LogFrame& Action Plan

3.05. Accounting for eligible expenditures. The SAIP needs to account for the

advance payments received in the framework of the Sub-project on a quarterly basis,

through the submission of Quarterly Financial Reports to account for 100%

(including of taxes) of eligible expenditures as defined in article 15 of the General

Conditions. The Financial Reports need to be prepared in accordance with the

provisions of Article 3 and 15 of the General Conditions, section 2.1.3, 3.3 and 5.3 of

the SAIP Operation Manual, and this section.

3.06. Audit Report. In accordance with article 2.05(c) of the present Special Conditions,

the SAIP shall submit to the MA 3 Audit Reports in the form provided in Annex R of

the ESAP2 SAIP Operational Manual. The reporting periods and the deadlines for

submitting the Audit Reports are stipulated in 2.04(b).

Article IV: SAIP Representative, Addresses and Contacts

4.01. SAIP Representative. The SAIP’s representative is its official who has

countersigned this Agreement on behalf of the SAIP or his/her official replacement.

4.02. SAIP Address. The SAIP’s address is its address indicated in the cover letter of this

Agreement.

4.03. Management Agency Address. The Management Agency’s address is its address

indicated in the cover letter of this Agreement.

4.04. Contact. Any formal communication relating to this Agreement, including official

submission of Deliverables, must be both in electronic and in hard copy, state the

reference number of the project (ESAP/2013/-------------) and be sent to the address

of the Management Agency provided in Article 4.03. Email or fax communication

does not suffice for the purpose of submission of official reports.


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Thus agreed to and composed in English in three originals, one original being for the

Management Agency, one for the World Bank and one being for the SAIP.

For the SAIP For the Management Agency

Name _______________ Name Peter Knip

Title _________________ Title Director

Signature

Signature

Date ____________ Date ______________


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General conditions applicable to esap2 sub-grant agreements

Article 1 – Introductory Provisions

1.1. These General Conditions set forth terms and conditions generally applicable to Grants for Sub-projects provided by the Management Agency out of a Multi-donor Trust Fund. They apply as specified in article 1.03 of the Grant Agreement.

1.2. If any provision of the Grant Agreement is inconsistent with a provision of these General Conditions, the provision of the Grant Agreement shall govern.

1.3. Except as otherwise provided in the Grant Agreement, wherever capitalized terms are used in these General Conditions or in the Grant Agreement, they have the meanings ascribed to them in the Special Conditions.

1.4. References in these General Conditions to Articles and Sections are to the Articles and Sections of these General Conditions. Their headings are inserted in these General Conditions for reference only and shall not be taken into consideration in interpreting these General Conditions.

Article 2 -General Obligations

2.1. The SAIP shall implement the Grant under its own responsibility and in accordance with the description of the Project in Annex 1A with a view to achieving the objectives laid down therein.

2.2. The SAIP shall implement the Project with the requisite care, efficiency, transparency and diligence, in line with best practice in the field concerned and in compliance with this Agreement. For this purpose the SAIP shall mobilize all the financial, human and material resources required for full implementation of the Project as specified in the description of the Project, and agreed during Grant Negotiations.

2.3. The SAIP shall act alone or in partnership with one or more non-governmental organizations or other bodies identified in the description of the Project. Partners take part in the implementation of the Project, and the costs they incur are eligible in the same way as those incurred by the lead SAIP. If the lead SAIP or, where applicable its partners, have to conclude contracts in order to carry out the Project, these may only cover a limited portion of the Project and shall respect the contract-award procedures and rules of sound procurement procedures that should be taken into account in line with the applicable manual of the organization, the SAIP Operational Manual, Article 2.06 of the Special Conditions and Article 15.1 and 17.3 of the present General Conditions.

2.4. The SAIP alone shall be accountable to the Management Agency for the implementation of the Project. It shall undertake that the conditions applicable to it under the relevant Articles shall also apply to its partners and to all its contractors. It shall include provisions to that effect as appropriate in its contracts with them.

2.5. The SAIP and the Management Agency are the only parties to this Agreement. The SAIP alone is contractually responsible vis-à-vis the Management Agency. The Management Agency does not recognize any contractual link of itself with partners of the SAIP.

Article3 – Obligation to Provide Information and Financial and Narrative

Reports

3.1. The SAIP must provide the Management Agency with all required information on the implementation of the Project. To that end, the SAIP must draw up Quarterly Narrative and Financial Reports and a Final Narrative and Financial Report. These reports must conform to the templates provided in the ESAP2 SAIP Operational


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Manual. Each report must provide a full account of all aspects of the Project's implementation for the period covered.

3.2. The Management Agency may request additional information on any aspect of the Project’s implementation at any time and that information must be supplied within 30 days of the request.

3.3. The reports shall be drafted in English. They shall be submitted to the Management Agency in accordance with the deadlines stipulated in article 2.04 (b) of the Special Conditions.

3.4. If the SAIP fails to supply the Management Agency with reports as per Article 2 and 3 of the Special Conditions and fails to furnish an acceptable and sufficient written explanation of the reasons why it is unable to comply with this obligation, the Management Agency may terminate the Agreement in accordance with Article 13.2 of the present General Conditions and recover the amounts already paid and not substantiated.

Article 4 -Liability

The Management Agency cannot under any circumstances or for any reason

whatsoever

be held liable for damage or injury sustained by the staff or property of the SAIP

while the Project is being carried out or as a consequence of the Project. The MA

cannot therefore accept any claim for compensation or increases in payment in

connection with such damage or injury.

The SAIP shall assume sole liability towards third parties, including liability for

damage or injury of any kind sustained by them while the Project is being carried out

or as a consequence of the Project. The SAIP shall discharge the Management Agency

of all liability arising from any claim or project brought as a result of an infringement

by the SAIP or the SAIP's employees or individuals for whom those employees are

responsible of rules or regulations, or as a result of violation of a third party's rights.

Article 5 -Conflict of Interests

The SAIP shall take all necessary precautions to avoid conflicts of interests and shall

inform the Management Agency without delay of any situation constituting or likely

to lead to any such conflict.

There is a conflict of interests where the impartial and objective exercise of the

functions of any person under this Agreement is compromised for reasons involving

family, emotional life, political or national affinity, economic interest or any other

shared interest with another person.

Article 6 -Confidentiality

Subject to Article 17, the Management Agency and the SAIP undertake to preserve the

confidentiality of any document, information or other material communicated to

them in confidence until at least 5 years after the final payment. The World Bank

which is administering the Multi-donor Trust Fund under which this grant is

provided, shall still have access to all documents communicated to the Management

Agency and shall maintain the same confidentiality.


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Article 7 -Visibility

7.1. Unless the Management Agent or the World Bank agrees or requests otherwise, the

SAIP must take all necessary steps to publicize the fact that the Ethiopian Social

Accountability Programme 2 has financed the Project.

7.2. In particular, the SAIP shall mention the Project, the Program and the World Bank

Multi-donor Trust Fund’s financial contribution in information given to the final

recipients of the Project, in its internal and annual reports, and in any dealings with

the media. It shall display the Ethiopian Social Accountability Programme 2 logo

wherever appropriate.

7.3. Any notice or publication by the SAIP concerning the Project, including those given at

a conference or seminar, must specify that the Project has received Ethiopian Social

Accountability Programme 2 funding. Any publication by the SAIP, in whatever form

and by whatever medium, including the internet, must include the following

statement: “This document has been produced with the financial assistance of the

Ethiopian Social Accountability Programme 2. The contents of this document are

the sole responsibility of ------------------------------------------------------(name of

SAIP)-------and can under no circumstances be regarded as reflecting the position

of the Ethiopian Social Accountability Programme 2, the Management Agency, nor

the World Bank.”

7.4. The SAIP authorizes the Management Agency and the World Bank to publish its

name and address, nationality, the purpose and contents of the Project, duration and

location as well as the maximum amount of the grant. Derogation from publication of

this information may be granted upon request if it could endanger the SAIP or harm

its interests.

Article 8 – Ownership / Use of Results and Assets

8.1. Ownership of, and title and intellectual and industrial property rights to, the Project's

results, reports and other documents relating to it shall be vested in the SAIP.

8.2. Notwithstanding the provisions of Article 8.1 and subject to Article 6, the SAIP grants

the Management Agency and the World Bank the right to use freely and as it sees fit

all documents deriving from the Project, whatever their form, provided it does not

thereby breach existing industrial and intellectual property rights.

Article 9 – Evaluation / Monitoring of the Project

9.1. If the Management Agency or the World Bank carries out an interim or ex post

evaluation or a monitoring mission, the SAIP shall undertake to provide it and/or the

persons authorized by it with any document or information which will assist with the

evaluation or monitoring mission, and grant them the access rights described in

Article 17. This obligation also applies to any person / organization that is requested

by the Management Agency or the World Bank to undertake such a task.

9.2. If either Contracting party (or the World Bank) carries out or commissions an


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evaluation in the course of the Project, it must provide the other party and the World

Bank (or the Parties) with a copy of the evaluation report.

Article 10 – Amendment of the Agreement

10.1. Any substantial amendment to the Agreement, including the annexes thereto, must

be set out in writing in an addendum. This Agreement can be modified only during its

execution period. If an amendment is requested by the SAIP, it must submit that

request to the Management Agency 30 days before the date on which the amendment

should enter into force, unless there are special circumstances duly substantiated by

the SAIP and accepted by the Management Agency.

10.2. However, where the amendment to the Budget or description of the Project does not

affect the basic purpose of the Project and the financial impact is limited to a transfer

between items within the same main budget heading (e.g. items within 1. Services –

Human Resources, or within 2. Goods) or a transfer between main budget headings

(e.g. between 1. Services – Human Resources to 2. Goods) involving a variation of

10% or less of the amount originally entered (or as modified by addendum) in

relation to each concerned main heading for eligible costs, the SAIP may amend the

budget and immediately inform in writing the Management Agency accordingly. This

method may not be used to amend the headings for administrative costs or the

contingency reserve.

10.3. Changes of address, bank account or auditor may simply be notified in writing,

although this does not stop the Management Agency from rejecting the SAIP's choice

of bank account or auditor. The Management Agency reserves the right to require

that the auditor performing the verification tasks described in Annex R of the SAIP

Operational Manual be replaced if considerations which were unknown when the

Agreement was signed cast doubt on the auditor's independence or professional

standards.

10.4. An addendum may not have the purpose or the effect of making changes to the

Agreement that would call into question the grant award decision or be contrary to

the equal treatment of applicants.

Article 11 -Assignment

11.1 The Agreement and the payments attached to it may not be assigned to a third party

outside the agreed partnership described in the Project in any manner whatsoever

without the prior written consent of the Management Agency.

Article 12 – Implementation Period of the Project, Extension, Suspension,

Force Majeur and End Date

12.1. The SAIP may suspend implementation of all or part of the Project if circumstances

(chiefly force majeure) make it too difficult or dangerous to continue. The SAIP must

inform the Management Agency without delay and provide all the necessary

details.Each party may terminate the Agreement in accordance with Article 13.1. If

the Agreement is not terminated, the SAIP shall endeavor to minimize the time of its

suspension and shall resume implementation once circumstances allow, after


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obtaining the prior written approval of the Management Agency.

12.2. The Management Agency may request the SAIP to suspend implementation of all or

part of the Project if circumstances (chiefly force majeure) make it too difficult or

dangerous to continue. Each party may terminate the Agreement in accordance with

Article 13.1. If the Agreement is not terminated, the SAIP shall endeavor to minimize

the time of its suspension and shall resume implementation once circumstances

allow, after obtaining the prior written approval of the Management Agency.

12.3. Force majeure shall mean any unforeseeable exceptional situation or event beyond

the parties’ control which prevents either of them from fulfilling any of their

contractual obligations, is not attributable to error or negligence on their part (or the

part of their subcontractors, agents or employees), and proves insurmountable in

spite of all due diligence. Defects in equipment or material or delays in making them

available, labor disputes, strikes or financial difficulties cannot be invoked as force

majeure. A party shall not be held in breach of its contractual obligations if it is

prevented from fulfilling them by force majeure. Without prejudice to Articles 13.2

and 13.4, the party faced with force majeure shall inform the other party without

delay, stating the nature, probable duration and foreseeable effects of the problem,

and take any measure to minimize possible damage.

12.4. The payment obligations of the Management Agency under this Agreement shall end

three months after the implementation period laid down in Article 2.03 of the Special

Conditions, unless the Agreement is terminated under Article 13. The Management

Agency shall notify the SAIP of any postponement of the end date.

Article 13 – Termination of the Agreement

13.1. If a party believes that the Agreement can no longer be executed effectively or

appropriately, it shall consult the other party. Failing agreement on a solution, either

party may terminate the Agreement by serving two months' written notice, without

being required to pay compensation.

13.2. The Management Agency may terminate the Agreement, by giving a seven day notice

and without paying compensation of any kind:

a) where the SAIP fails, without justification, to fulfill any of the obligations

incumbent on it and, after being given notice by letter to comply with those

obligations, still fails to do so or to furnish a satisfactory explanation within 30

days of sending of the letter;

b) where the SAIP is bankrupt or being wound up, is having its affairs administered

by the courts, has entered into an arrangement with creditors, has had its license or

registration terminated by the Charities and Societies Agency, has suspended

business activities, is the subject of proceedings concerning those matters or is in any

analogous situation arising from a similar procedure provided for in national

legislation or regulations;

c) where the Management Agency has evidence on the SAIP or any related entity or

person, of grave professional misconduct; this also applies to partners and agents of

the SAIP;


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d) where the Management Agency has evidence on the SAIP or any related entity or

person, of fraud, corruption, involvement in a criminal organization or any other

illegal activity detrimental to the World Bank’s and the Management Agency’s

financial interests; this also applies to partners and agents of the SAIP;

e) where the SAIP changes legal personality, unless an addendum recording that fact

is drawn up;

f) where the SAIP does not comply with Articles 5, 11 and 17 of the General

Conditions;

g) where the SAIP makes false or incomplete statements to obtain the grant provided

for in the Agreement or provides reports that do not reflect reality;

h) where the SAIP has not fulfilled obligations relating to the payment of social

security contributions or the payment of taxes in accordance with the legal provisions

of the country in which it is established;

i) where the Management Agency has evidence on the SAIP or any related entity or

person, of substantial errors, irregularities or fraud in the award procedure or the

performance of the grant; this also applies to partners and agents of the SAIP;

13.3. The SAIP who has made false declarations, has made substantial errors or committed

irregularities and fraud, or has been found in serious breach of its contractual

obligations may be excluded from future contracts financed by Ethiopian Social

Accountability Programme 2, in communication with the Multi-donor Trust Fund

and the World Bank.

13.4. In the event of termination, the SAIP shall be entitled to payment of the grant only for

the part of the Project carried out, excluding costs connected with current

commitments that would be implemented after termination. For this purpose the

SAIP shall introduce a payment request and a Final Report in accordance with Article

3.

13.5. However, in the event of termination of the Agreement by the Management Agency

under the cases specified in points d), e) and g) of Article 13.2, the Management

Agency may request full or partial repayment of sums already paid from the grant, in

proportion to the gravity of the failings in question and after allowing the SAIP to

submit its observations.

13.6. Prior to, or instead of, terminating the Agreement as provided for in this Article, the

Management Agency may suspend payments as a precautionary measure without

prior notice.

13.7. This Agreement shall be terminated automatically if it has not given rise to any

payment by the Management Agency within six months of its signature.

Article 14 – Applicable Law and Dispute Settlement

14.1. This Agreement shall be governed by the law of Ethiopia.


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14.2. The Parties shall do everything possible to settle amicably any dispute arising

between them during implementation of this Agreement. To that end, they shall

communicate their positions and any solution that they consider possible in writing,

and meet each other at either's request. A party must reply to a request for an

amicable settlement within 30 days. Once this period has expired, or if the attempt

to reach amicable settlement has not produced agreement within 120 days of the first

request, each party may notify the other that it considers the procedure to have failed.

14.3. In the event of failure to reach an amicable agreement, the dispute may by common

agreement of the Parties be submitted to the conciliation of the World Bank. If no

settlement is reached within 120 days of the opening of the conciliation procedure,

each party may notify the other that it considers the procedure to have failed.

14.4. In the event of failure of the above procedures, each party may submit the dispute to

the courts of Ethiopia.

Article 15 – Eligible Costs

15.1. Eligible costs are costs actually incurred by the SAIP which meet all the following

criteria:

The costs are incurred during the project’s lifetime; with the exception of the

auditor’s costs for the last Audit Report and vacancy advertisement fee for

recruitment of project staff incurred before the signing of this agreement;

The costs are indicated in the total estimated budget for the project, which is an

integral part of the grant agreement;

The costs are necessary for the implementation of the project which is the

objective of the grant;

The costs are identifiable and verifiable, meaning that when they are incurred by

the SAIP, they can be recorded in the organization’s accounting system and can be

supported by original documents;

The expenditures comply with the requirements of applicable tax and social

legislation;

The costs are reasonable (fair market price), justifiable and comply with the

requirements of sound procurement practice as set forth in annexN of the

Operational Manual.

15.2. Subject to the above conditions, the following direct costs of the SAIP and its partners

shall be eligible:

Salary: full and part time staff cost who contribute their time for the project implementation;

Consultancy fee: costs for the work done by a consultant or expert specifically hired for the project on short term basis to carry out tasks on demand basis only;

Travel costs and subsistence: for staff, consultant and workshop/training participants who take part in the project implementation;


131 /234

Workshops/Trainings costs: this includes costs for venue, refreshment, stationeries, etc;

Material production cost: costs incurred for the production and reproduction of materials for the purpose of the project;

Capital Asset: costs for the purchase of fixed assets such as office furniture, equipment, motor cycles etc., specifically for the purposes of the Project;

Auditor’s costs: costs for the auditor for the preparation of the Audit Report of the Project’s Financial Statements. Each grant applicant is obliged to cover these costs from the grant budget.

Direct operational costs, such as transport costs, vehicle running costs, office

rental and running costs, provided these are reasonable, relative to the project’s

proportion and can be clearly linked to the project in question.

15.3. A contingency reserve not exceeding 5% of the direct eligible costs may be included in the Budget of the Project. It can be used only with the prior written authorisation of the Management Agency.

15.4. A fixed percentage not exceeding the percentage laid down in Article 3.05 of the

Special Conditions of the total amount of direct eligible costs of the Project may be

claimed to cover for over head expenses. The flat rate is intended to cover running

costs which are not included anywhere else in the budget.

15.5. The following costs shall not be considered eligible:

Salary top up: any salary top up for the staff, who are currently working with the

organization;

Honorarium: any honorarium for the staff of the organization;

Internal consulting: any fee paid to consulting service rendered by the grant

organization’s own staff;

Loan charge: the loan given for any party and related costs such as interest;

Penalty: any kind of penalty or fine incurred by the organization;

Legal cost: any legal fee in relation to any litigation by the organization;

Redundancy payment: any redundancy payment other than what is indicated in

the staffing cost;

Bad debt: any charge as bad debt expense whether it relates to the project or not;

Gift: gift or present given for any body under any circumstance;

Entertainment costs: costs incurred for entertainment, picnic, amusements,

social activities, etc

Provision of future liability: any reserve to cover future liabilities;

Costs related to the preparation and submission of the grant application under

this Call for Proposals, including costs such as information gathering, staff time


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and travel;

Purchase of land or buildings;

Purchase of second hand equipment;

Purchase of cars (new or second-hand);

Any cost not related to the project.

Article 16 – Payment and Interest on Late Payment

16.1. Payment procedures are set out in Article 3 of the Special Conditions.

16.2. Where the award procedure or performance of the Agreement is vitiated by

substantial errors or irregularities or by fraud attributable to the SAIP, the

Management Agency may refuse to make payments or may recover amounts already

paid, in proportion to the seriousness of the errors, irregularities or fraud. The

Management Agency may also suspend payments in cases where there are suspected

or established errors, irregularities or fraud committed by the SAIP in the

performance of another contract which is likely to affect the performance of the

present Agreement. Suspension shall take effect when the notification is sent by the

Management Agency.

16.3. Three Audit Reports, produced by an external audit company, approved by the

Management Agency, shall be provided to the MA accompanying the Financial

Reports, as determined in article 3.06 of the Special Conditions.

16.4 Based on all the Audit Report and the Final Financial Report, the Management

Agency determines the total amount of eligible expenditures which may be deducted

from the total sum of advances paid under the Agreement.

Article 17 – Accounts and Technical and Financial Checks

17.1. The SAIP shall keep accurate and regular accounts of the implementation of the

Project using an appropriate accounting and double-entry book-keeping system.

These systems may either be an integrated part of the SAIP’s regular system or an

adjunct to that system. This system shall be run in accordance with the accounting

and bookkeeping policies and rules that apply in the country concerned. Accounts

and expenditure relating to the Project must be easily identifiable and verifiable. This

can be done by using separate accounts for the Project concerned or by ensuring that

expenditure for the Project concerned can be easily identified and traced to and

within the SAIP’s accounting and bookkeeping systems. Accounts must provide

details of interest accruing on funds paid by the Management Agency.

The SAIP shall ensure that the Financial Reports (both Quarterly and Final) as

required under Article 3 can be properly and easily reconciled to the SAIP’s

accounting and bookkeeping system and to the underlying accounting and other

relevant records. For this purpose the SAIP shall prepare and keep appropriate

reconciliations, supporting schedules, analyses and breakdowns for inspection and

verification.


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17.2. The SAIP shall allow the Management Agency, the World Bank and any external

auditor authorized by the Management Agency or the World Bank full access to the

Project’s documents to carry out verifications, to make copies of documents and

inspect supporting documents for the accounts, accounting documents and any other

document relevant to the financing of the Project. These inspections may take place up

to 10 years after the payment of the balance (the period being in accordance with the

Ethiopian tax proclamation).

To this end, the SAIP gives appropriate access to staff or agents of the Management

Agency, the World Bank and any external auditor authorized by the Management

Agency or the World Bank carrying out verifications to the sites and locations at

which the Project is implemented, including its information systems, as well as all

documents and databases concerning the technical and financial management of the

Project and to take all steps to facilitate their work. Access given shall be on the basis

of confidentiality with respect to third parties, without prejudice to the obligations of

public law to which they are subject. Documents must be easily accessible and filed so

as to facilitate their examination and the SAIP must inform the Management Agency

and the World Bank of their precise location.

The SAIP guarantees that the rights of Management Agency, the World Bank and any

external auditor authorized by the Management Agency or the World Bank carrying

out verifications shall be equally applicable, under the same conditions and according

to the same rules as those set out in this Article 17, to the SAIP's partners, contractors

and sub-SAIPs.

17.3. In addition to the Reports mentioned in Article 3 of these General Conditions, the

documents referred to in Article 17.2 include:

Accounting records (computerized or manual) from the SAIP’s accounting system

such as general ledger, sub ledgers and payroll accounts, fixed assets registers and

other relevant accounting information;

Proof of procurement procedures such as tendering documents, bids from

tenderers and evaluation reports;

Proof of commitments such as contracts and order forms;

Proof of delivery of services such as approved reports, timesheets, transport

tickets, proof of attending seminars, conferences and training courses (including

relevant documentation and material obtained, certificates), etc;

Proof of receipt of goods such as delivery slips from suppliers;

Proof of completion of works, such as acceptance certificates;

Proof of purchase such as invoices and receipts.

Proof of payment such as bank statements, debit notices, proof of settlement by

the contractor;

For fuel and oil expenses, a vehicle log-book, actual fuel costs and maintenance

costs;

Staff and payroll records such as contracts, salary statements,


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timesheets. For staff recruited on fixed-term contracts, details of remuneration

paid, duly substantiated by the person in charge locally, broken down into gross

salary, social security charges, insurance and net salary.

Article 18 – Final Amount of Financing by the Management Agency

18.1. The total amount to be paid by the Management Agency to the SAIP may not exceed

the maximum grant laid down in Article 3.02 of the Special Conditions.

18.2. The SAIP accepts that the Grant can under no circumstances result in a profit for

itself and that it must be limited to the amount required to balance income and

expenditure for the Project.

18.3. In addition and without prejudice to the right to terminate the Agreement in

accordance with Article 13.2, the Management Agency may, by a duly reasoned

decision, if the Project is not implemented or is implemented poorly, partially or late,

reduce the grant initially provided for in line with the actual implementation of the

Project on the terms laid down in this Agreement.

Article 19 -Recovery

19.1. The SAIP undertakes to repay any amounts paid in excess of the final amount due to

the Management Agency within 30 days of the issuing of the debit note, the latter

being the letter by which the Management Agency requests the amount owed by the

SAIP.

19.2. Should the SAIP fail to make repayment within the deadline set by the Management

Agency, the Management Agency may increase the amounts due by adding interest at

the rediscount rate applied by the central bank of Ethiopia.

19.3. Amounts to be repaid to the Management Agency may be offset against amounts of

any

kind due to the SAIP. This shall not affect the Parties' right to agree on payment in

installments.

19.4. Bank charges incurred by the repayment of amounts due to the Management Agency

shall be borne entirely by the SAIP.

Annex I-1: ESAP2 Budget Modification Request Form

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Annex I-1

ESAP2 Budget Modification Request Form

SAIP Name:

Project Title:

Contract Number:

Date of Request:

Expenses

Latest

contracted

budget as of

<insert date>*

Actual Expenditure as

of __________(insert

the last date of the

quarter for which the

expenses are

approved by the MA)**

Balance as of

_________(inser

t the last date of

the quarter for

which the

expenses were

approved by the

MA)***

Requested

Allocate-

ions ****

New

Propose

d Budget

of (insert

date of

request)*

****

Justification


1.1 Staff Salaries

1.1.1 Program Staff

1.1.1.1 Project Coordinator

0

1.1.1.2 Social Accountability Expert

0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff 0

1.1.2.1 Project Accountant

0

1.1.2.2 Procurement Officer

0

1.1.2.3 Driver

0

Subtotal Staff Salaries 0 0 0 0 0


0

1.2.1 Social Accountability Trainer

0

1.2.2

Consultant for Development of

SA Tools

0

1.2.3

Consultant for mid and final

evaluation

0

1.2.4 …………..

0

Subtotal Consultancy

Service 0 0 0 0 0

Total Service - Human Resource 0 0 0 0 0

2. 2. Goods

2.1 2.1 Furniture


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2.1.1 2.1.1 Office table

0

2.1.2 2.1.2 Office chair

0

2.1.3 2.1.3 …..

Subtotal Furniture 0 0 0 0 0

2.2 Equipment

0

2.2.1 2.2.1 Desktop Computer

0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0

Subtotal Equipment 0 0 0 0 0

2.3 Office supplies

0

2.3.1 Stationary supplies

0

2.3.2

Consumable supplies

(refreshment, detergents, etc.)

0

2.3.3 ……..

0

Subtotal Office supplies 0 0 0 0 0

Total Goods 0 0 0 0 0

3.

3. Monitoring and

Evaluation

3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0

Subtotal Travel 0 0 0 0 0

3.2 Per Diem

0

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0

Subtotal Per Diem 0 0 0 0 0

3.3 Auditor's Costs

0

3.3.1

Auditor's Costs for Audit Report

1

0

3.3.2


2

0

3.3.3


3

0

Subtotal Auditor's Costs 0 0 0 0 0

Total Monitoring and

Evaluation 0 0 0 0 0


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4.

Program Deliveries /

Activities

4.1 4.1 Trainings

4.1.1

Training 1 (use the 'Detailed

Training Sheet' for calculations)

0

4.1.2



0

4.1.3

0

Subtotal Trainings 0 0 0 0 0

4.2 4.2 Research and Surveys

0

4.2.1 4.2.1 Survey on …

0

4.2.2 4.2.2 Assessment on ……

0

4.2.3 4.2.3 ……

0

Subtotal Trainings 0 0 0 0 0

Total 4. Program Deliveries

/ Activities 0 0 0 0 0

5. 5. Direct Operational Costs

5.1

0

5.2

0

5.3

0

Total Direct Operational

Costs 0 0 0 0 0

6. Total Direct Costs (1-5) 0 0 0 0 0

7.

Provision for Contingency (5%

of Total Direct Costs)**

0

8.

Administrative Costs (7% of

Total Direct Costs)***

0

9.

Total Project Costs (6+7+8)

in ETB 0 0 0 0 0

Notes:

* The budget column shall be in line with the approved budget.

** The actual expense column shall be in line with the expense approved by the MA with the latest

Quarterly Financial Report.

***Reallocation (Current Modification) shall include the current change on each activity.

**** The Amendment budget including re-allocation shall include the current realignment plus the

original approved budget.

***** Justification column shall answer the question why the realignment is needed for each change.

In addition, it has to include how the calculation is made for the additional activities or budget

increment.


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Annex J

ESAP2 Grant Applicant’s Bank Detail Verification Format

Note for applicants: The Bank Detail Verification Format needs to be submitted to the MA

once the Applicant is pre-selected for contracting. It serves to provide the MA with the latest

information on the bank account of pre-selected SAIP. The format below needs to be filled

out and, together with a recent bank statement of the organization, be submitted to the MA.

The MA strongly advices to open a separate bank account for all transfers in the framework

of the ESAP2 grant. However, a separate bank account can most probably only be opened

after contract signature. As soon as the separate bank account is opened, the SAIP is

requested to submit a new Bank Detail Verification Format to the MA as soon as possible.

ESAP2 Grant Application’s Bank Detail Verification Format

1. Account Holder Information

Account Name

Account Number

IBAN

Name of Bank

Signatories

Name Position

1.

2.

3.

Address

Post Code

Town / City

Country

Telephone Number

Fax Number

E-mail address


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2. Bank Information

Bank Name

Branche (if any)

Address

Post Code

Town / City

Country

Telephone Number

Fax Number

Representative of Account Holder Representative of the Bank

Name Name

Signature Signature

Stamp Stamp


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Annex K

ESAP2 Grant Applicant’s Legal Verification Format

Note for applicants: The Legal Verification Format needs to be submitted to the MA once

the Applicant is pre-selected for contracting. It serves to provide the MA with the latest

information on the pre-selected SAIP. In case changes in the status and/or registration of the

SAIP have occurred in the period between the submission of the application and the contract

award, this can be noted in this format.

ESAP2 Legal Verification Format

Full legal name

Acronym

Nationality

Legal Status Type of Organization

(CSO, FBO, CBO etc)


Body



Registration Number

License Valid Until

Tax Identification

Number

Official address

Telephone number

Fax number

Website

E-mail address

Contact person for

this action


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Contact’s person e-

mail address

Name of

Authorized Person

Signature

Authorized Person

Stamp

Date

Any change in the addresses, phone numbers, fax numbers and in particular e-mail, must

be notified in writing to the MA at the address provided in section 2.3 of the Operational

Manual. The MA will not be held responsible in case it cannot contact an applicant.

Annex L: ESAP2 Request for Advance payment

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Annex L

ESAP2 Request for Advance Payment

Note for applicants: Once the grant agreement is signed, a request for an advance payment

can be submitted to the MA, in accordance with the grant agreement. Any following request

for an advance payment needs to be submitted to the MA by filling out the format below.

Please note that without proper substantiating of the use of the previous advances received,

no new advance payments will be processed.

ESAP2 Contract Details

ESAP2 Grant Agreement Reference Number

Grant Project Title

ESAP2 Grantee

ESAP2 Grantee Address

Contact person

Payment Request Number

Bank Account Number

Reference

Period to be covered by the Advance Payment

Annex L: ESAP2 Request for Advance payment

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ESAP2 Request for Advance Payment

Dear Sir/Madam,

I hereby request an advance payment under the grant agreement mentioned above. The

amount requested is USD --------------- in line with the Statement of Cash Balance attached

herewith.

Please find attached the following supporting documents:

Quarterly Narrative and Financial Report


Statement of Budget vs Expenditure

A Forecast Budget for the Subsequent 3-month Period

List of Itemized Expenditures for the Reporting Period

I hereby certify that the information contained in this request for payment is complete,

faithful and reliable, that the costs incurred can be considered eligible in accordance with

the Contract and that this request for payment is substantiated by adequate supporting

documents that can be checked.

Name Authorized person

Signature Authorized person

Stamp contracted organization

Sign and send original to:

Ethiopia Social Accountability Program (ESAP2)

The Management Agency



Annex M: ESAP2 Example Attendance Sheet Format

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Annex M

ESAP2 Example Attendance Sheet Format

Name of Organization:

ESAP2 Grant Agreement Reference Number:

Title/Subject of training/conference:

Start date and end date:

Venue:

No.

Name of

Participant Organization Position

Woreda/Zone/

Region Tel. Signature

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Annex N: Procurement Manual for SAIPs participating in the ESAP

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Annex N

Procurement Manual for SAIPs participating in the Ethiopia Social Accountability Program

I. Introduction

1. The Ethiopia Social Accountability Program 2 (ESAP2) is part of PBS and seeks to

improve basic public service delivery by local governments by helping to make services

better attuned to the needs and priorities of citizens. The overall objective of ESAP2 is to

strengthen the use of social accountability tools, approaches and mechanisms by citizens

and citizen groups, civil society organizations, local government officials and service

providers as a means to make basic service delivery more equitable, effective, efficient,

responsive and accountable. It targets both men and women, including those living with

HIV/Aids and/or disabilities.

2. Through grant projects, SAIPs will provide intensive training for selected community

representatives, citizen groups, local government officials etc. on social accountability

principles, service standards and on selected social accountability tools to evaluate

service delivery performance, and facilitate and support the use of the tools in selected

woredas and kebeles.

3. The grant scheme provides a funding opportunity to SAIPs to develop and implement

social accountability initiatives in Ethiopia. Funds will be allocated to projects, that

contribute to the objectives of ESAP2 and thus seeks to enhance citizens’ dialogue with

local governments and service providers to contribute to and increase the demand for

improved quality services in the areas of education, health, water and sanitation,

agriculture and rural roads.

4. A total of 30 SAIPs have been selected up until November 2012 to implement social

accountability activities. The SAIPs are expected to direct the grant funds to reasonable

and realistic program activity costs that are eligible under the program. Procurement of

capital assets such as office furniture, equipment, motor cycles, etc, as well as selection

of individual consultants on short term basis to carryout specific tasks on demand basis

are eligible. However, procurement of second hand equipment, cars (new or second

hand), land, and buildings are ineligible. SAIPs are expected to adhere to Bank’s

procurement Guidelines while undertaking eligible procurement activities.

5. Procurement activities of the SAIPS would be carried out in accordance with the World

Bank’s “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under

IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January 2011;

and “Guidelines: Selection and Employment of Consultants under IBRD Loans and

IDA Credits & Grants by World Bank Borrowers” dated January 2011.


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II. Expected procurement profile

Procurable item Average

[USD]

Max

[USD}

Furniture

Table 1,168 3,000

Chair 1,098 3,500

Shelf 718 2,500

Other 459 833

Equipment

Labtop 2,400 6,028

Desktop Computer 2,639 6,667

Photocopier 2,944 5,833

Camera 1,271 3,444

Printer 1,241 3,556

Motorbike 14,138 30,556

Other 1,038 3,889

Office supplies

Stationery supplies 2,911 10,000

Consumables 1,926 7,333

Consultancy Item Average

[USD]

Max

[USD}

Training 3,076 9,583

M&E 4,413 12,500

Others 3,410 8,944

6. Accordingly this is prepared, annex to the Operational Manual, to serve as a

procurement implementation guide to SAIPs while undertaking procurement activities.

7. Under the program numerous small value goods procurement is expected to take place

at SAIP level. Assessment done on proposals from 30 SAIPs indicates that the average

amount of item to be procured is around $2,600 and the maximum value is $30,500.

Table below indicates the average and maximum values of expected items.

8. Similar to the goods procurement, small value individual consultancy services are

expected to be sought by the SAIPS. Main areas of consultancy services are for

providing training and for M&E mid-term and final evaluation.


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III. Applicable procurement methods – Goods and Non-consulting services

Step 1: Preparation of Technical Specifications/ BOQ:The SAIPs should prepare a

detailed specification/BOQ that is sufficient and precise. The items initiated should be

verified by the SAIP that they are clearly stated in the approved procurement plan.

During preparation of specification Brand names should not be specified. If brand

names are required (e.g. for spare parts) add: “or equivalent”.

Step 2: Preparation of Request for Quotations: The Request for Quotations (RFQ)

should be prepared by taking the following major points into consideration: (a sample

RFQ is attached as annex 1)

9. Given the small value nature of expected procurements the most appropriate

procurement method is the Shopping method. Since the values of expected procurement

are small, SAIPs are not expected to use open competitive methods like International

Competitive Method (ICB) and National Competitive Method (NCB). A single

procurement shall be below USD 50,000. Hence, SAIPs shall use the Shopping method

for procurement of goods and non-consultancy services.

10. Shopping method: Under this method, the SAIP shall solicit quotations from at least

three qualified suppliers based on a simplified Request for Quotation (RFQ) form (see

annex 1) that includes a description of the goods, works, or services and detailed

specifications. The MA will provide them the template, which is being used by itself. All

quotations shall be made in writing and signed. The Quotations shall be opened in the

presence of the procurement committee members and the SAIP shall indicate in the RFQ

that interested bidders are invited to attend the opening session and shall indicate the

opening session’s date and time in the RFQ. Quotations received shall be evaluated by at

least 3 Evaluation Committee members. As a general rule, a qualified supplier who offers

goods or materials that meet the specifications at the lowest price shall be recommended

for award of the contract. The Evaluation Committee shall produce and sign minutes of

the opening ceremony and evaluation process. Generally, the following steps should be

followed by the SAIPs during procurement of Goods, Works and Non-Consulting

Services using Shopping procurement method;


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Step 3: Invite Firms to Quote: The head of the SAIP should sign on the RFQ, and then

the RFQ is sent to shortlisted suppliers or service providers in seeking written quotations

from as much qualified firms as possible. The firms invited to quote should be reputable,

well established, and are suppliers of the goods or services being purchased as part of

their normal business. It is recommended to invite a minimum of four suppliers, with the

aim of receiving at least three quotations to evaluate.

The suppliers/contractors should be independent from one another, registered in the

countries of operation, and capable of delivering the required goods (trading in specific

or similar goods) or completing the required service. Moreover, suppliers who have a

conflict of interest with a staff member of the SAIP may have to be disqualified.

Step 4: Receiving Quotations (minimum three):Suppliers should submit their quotations

in writing with closed envelopes. They are not obligated to submit bid or performance

securities as part of their quotation. The quotation shall be submitted not later than the

date and time specified in the RFQ. It requires opening with the presence of more than

two witnesses or with the presence of the suppliers who wish to attend. Normally,

requests for quotes indicate the expected date of submission of quotes, within one week

of the initial request. In other cases, if the procuring entity has not received at least three

quotations within the time set, it will be required to re-invite suppliers in writing for

submission of quotations. At this point if three and above quotations are received, the

SAIP may proceed with the comparison of the quotations received.

Step 5: Quotations Opening and Comparison: The head of the SAIP or his/her delegate

should assign an evaluation committee consisting of at least three qualified staff for

carrying out quotation comparison. During evaluation technical support may be sought

from technical expert. The Purchasing Committee should record the opening process and

evaluation and comparison of quotations in Minutes. The following major points should

be considered during evaluation and comparison of quotations:

Shortlisted suppliers name and address

The deadline for submitting the quotations and place of submission, usually one week

from the date of issuance of the RFQ

The required period of validity of the quotations

The key contract terms: fixed price, place and time for delivery or completion, etc

Payment provisions and mode of payment

The description and quantity of the goods, works or services

The RFQ should be approved by the project coordinator of the SAIP before issuing it to

selected firms.


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Step 6: Preparation of Quotation Evaluation & Comparison Report: After the

verification of the evaluation result, the evaluation committee should prepare a Minute of

quotation evaluation and comparison report, which incorporate recommendation for

contract award, and present it to the head of the SAIP for approval.

Step 7: Contract Award and Issuance of Purchase Order: The SAIP should prepare

a Purchase Order (PO) listing all the items which are awarded to the least evaluated

supplier and send it to the supplier for his/her acceptance. Notification of the award

through official PO will constitute the formation of the contract. This Notification will

be sent by registered mail or hand delivery, inviting the supplier to deliver the goods

in accordance with the conditions of the Request for Quotations. Moreover, the SAIP

should publish the award of contract on its notice board and notify the unsuccessful

suppliers under each contract.

Step 8: Contract Management and Implementation: It should certainly be governed

by the provisions stated in the Purchase Order or contract agreement documents

agreed between the two parties.

Step 9: Delivery and Acceptance: When the goods are delivered by the supplier to

the project site each item delivered should be inspected and verified that they are

delivered as per the agreed specifications and technical requirements. Finally, Goods

Receiving Report (GRN) should be issued by the SAIP and payment should be

effected accordingly.

Verify if the quotations is substantially responsive to the request for quotations;

Examine if quotations conform to the technical specifications/BOQ and the delivery

time or completion time;

Verify any arithmetical errors. For example, if the quotation in figures is different

from the quotation in words, the amount in words will prevail. If there is a

discrepancy between the unit price and the total price that is obtained by multiplying

the unit price and quantity, the unit price shall prevail and the total price shall be

corrected;

Tabulate the Quotations and compare the prices of the quotations that are

substantially responsive;

Identify the supplier with the lowest price;

Verification of the evaluation results.


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IV. Selection of Consultants

12. Assessment of SAIPs proposals indicates that the requirement for consulting services

will dominantly be selection of individual consultant who will undertake social

accountability training, develop social accountability tools, and do mid and final

evaluations.

13. Individual Consultants are normally employed on assignments for which;

Teams of personnel are not required;

Additional outside (home office) professional support is not required;

The experience and qualifications of the individual are the paramount requirement.

When administration or collective responsibility may become difficult because of

the number of individuals, it would be advisable to employ a firm.

14. The criteria used for selection of individual consultants are as follows:

Individual consultants are selected on the basis of their qualifications for the

assignment;

They may be selected through advertising for Expression of Interest and

comparison of qualifications among those expressing interest to the assignment, or

through comparison of at least three CVs of interested individuals;

Individuals employed by the SAIPs must meet all relevant qualifications and be

fully capable of carrying out the assignment;

Capability is judged on the basis of academic and professional background, relevant

experience and, as appropriate, knowledge of the local conditions, such as local

language, culture, administrative system, and government organization;

Based on the criteria, proper comparison of CVs has to be undertaken and

evaluation report has to be prepared and approved by the authorized person.

11. Direct Contracting (DC): Direct contracting is contracting without competition and

is not a preferred method, unless in exceptional cases where this method is deemed

advantageous in meeting certain specific objectives and is justifiable over the other

competitive methods, and if the method is approved in prior through the procurement

plan. SAIPs may use DC only under special circumstances where it is considered

appropriate and when it is clear that shopping method is not possible or has been

attempted and no response was obtained. SAIPs may also procure goods through

direct contracting where:

Goods are of proprietary nature;

As continuation of a previous contract awarded through a competitive process; or

Where there is one supplier and the cost of obtaining quotation may not be cost

effective as would be the case for remote districts.


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15. The proposed individual consultant position and duration as well as the TOR shall get

prior approval from the Management Agency (MA).

V. Procurement Planning (PP)

VI. Procurement records

18. Each SAIP is expected to maintain procurement records for future reference and post

procurement review by the World Bank or by the MA. Procurement documents should

be kept in a systematic and organized manner for each of the steps described in Section

3 above. They should also be kept in a safe and secure place, preferably using Box files

and folders. A separate file or a separate section should be reserved for each

procurement package stated in the PP. The SAIPS are required to give due attention to

ensure that procurement records are kept complete and safe during implementation

16. The overall objective of the Procurement Planning is to ensure that the procurement of

goods and services are done in an efficient, economical way and in a timely manner.

Each SAIP is expected to prepare a Procurement Plan that will emanate from the

activities defined in the project’s Action Plan. The PP will incorporate data that

elaborates list of items to be procured, method of procurement to be used, duration for

major procurement processes and planned dates to execute each steps and contract

award and completion dates. The PP will be used as a management tools to monitor

and follow up procurement activities of the SAIP throughout the year. Simplified

procurement plan template is provided in the annex to this manual.

17. The SAIPs shall perform proper planning for all procurements in order to ensure that

they meet their needs in the most effective, economical and timely manner. The

following particular features need to be ensured under the program:

Procurement plans should be based on the need of SAIP and should be supported

with budget and the activity as provided in the approved proposal.

Procurement plans shall be prepared and submitted to the Management Agency by

the lead SAIP. The MA will consolidate the plans received and will submit the

consolidated procurement plan in batches to the World Bank for review and

approval.

It is very important to note that no procurement should be undertaken unless it is

shown in the procurement plan and approved by the World Bank.

Once, the procurement plan is approved, it serves as a binding agreement between

the Bank, the MA and the respective SAIP, and procurement activities are

undertaken only as per the plan. The procurement plan will need to be updated by

the SAIP annually. This update plan follows the same process of submission and

approval as stipulated in this paragraph.

The project coordinator of the SAIP shall monitor the procurement plan to ensure

effective implementation of procurement and to address any source of delays.


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and completion of their respective program.

19. Proper procurement record requires due consideration of the following factors-

a. Approved Procurement Plan

b. Technical Specification or Requirement / TOR

c. Request for Quotations issued to bidders / Local Advertisements

d. Modifications/addenda to the RFQ

e. Clarification from bidders and written replies

f. Minutes of bid or quotation opening

g. Quotation comparison report / CV comparison report

h. Contract award notification

i. Purchase order / contract

j. Contract amendment

k. Inspection certificate

l. Payment certificate

m. Completion certificate or goods receiving report

n. Claims and disputes, and

o. Contract register(see annexed Form)

VII. Review by the World Bank

Space and facilities like (Filing Cabinet, Folders, access to Copying, etc) to ensure safe

keeping of procurement records;

Responsible person who can maintain procurement records and keep procurement

record from unauthorized use;

Establishing a procurement record system professionally to ensure efficiency,

accountability, completeness and easily accessibility of the procurement record.

20. The following major documents should be kept with the SAIP:

21. Contracts undertaken by SAIP will not be subject to prior review by the World Bank.

The World Bank will not engage in prior approval for the evaluation of bids and award of

contracts. Instead, a sample number of contracts will be post reviewed during or after

implementation. The World Bank may recruit and engage consultants to carryout post

review of procurement processes and decisions. The SAIPs shall avail procurement

documents listed under section 6 for the reviewer. The World Bank relies on its rights

under the general provisions of the Grant Agreement not to disburse on contracts that

violate principles set forth in its guidelines.

22. The Management Agency shall also check to the possible extent, the procurement

processes and documents during its internal audit visits, reviewing the Quarterly

Financial Reports, participate as an observer during the opening and evaluation of bids,

when deemed necessary, and provide supports to SAIPs in complying this policy. The

information and findings of such review processes shall be shared with the Bank.


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VIII. Fraud and corruption

(a) defines, for the purposes of this provision, the terms set forth below as follows:

(i) “corrupt practice” is the offering, giving, receiving or soliciting, directly or

indirectly, of anything of value to influence improperly the actions of another

party;

(ii) “fraudulent practice” is any act or omission, including a misrepresentation, that

knowingly or recklessly misleads, or attempts to mislead, a party to obtain a

financial or other benefit or to avoid an obligation;

(iii) “collusive practice” is an arrangement between two or more parties designed to

achieve an improper purpose, including to influence improperly the actions of

another party;

(iv)“coercive practice” is impairing or harming, or threatening to impair or harm,

directly or indirectly, any party or the property of the party to influence

improperly the actions of a party;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or concealing of evidence

material to the investigation or making false statements to investigators

in order to materially impede a Bank investigation into allegations of a

corrupt, fraudulent, coercive or collusive practice; and/or threatening,

harassing or intimidating any party to prevent it from disclosing its

knowledge of matters relevant to the investigation or from pursuing the

investigation, or

(bb) acts intended to materially impede the exercise of the World Bank’s

inspection and audit rights provided for under par. 1.14 (e) below.

(b) will reject a proposal for award if it determines that the bidder recommended for

award has, directly or through an agent, engaged in corrupt, fraudulent, collusive,

coercive or obstructive practices in competing for the contract in question;

(c) will cancel the portion of the loan allocated to a contract if it determines at any time

that representatives of the Borrower or of a beneficiary of the loan engaged in

corrupt, fraudulent, collusive, or coercive practices during the procurement or the

execution of that contract, without the Borrower having taken timely and

appropriate action satisfactory to the World Bank to address such practices when

they occur;

(d) will sanction a SAIP, a firm or individual, including declaring ineligible, either

indefinitely or for a stated period of time, to be awarded a World Bank-financed

contract if it at any time determines that the party has, directly or through an agent,

engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in

competing for, or in executing, a World Bank-financed contract.

23. It is required that all parties in the Social Accountability program, including SAIPs,

observe the highest standard of ethics during the procurement and implementation of

the program. In pursuance of this policy, the Bank:

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ANNEXES

Annex-1: Sample forms for request for quotation

Procurement Number: ………………….

To: ………………………………………………………

…………………………………………………………… Date:………………………..

The Procuring Entity named above invites you to submit your quotation for the goods described

herein. Partial Quotations may be rejected, and the Purchaser reserves the right to award a contract

for selected items only.

SECTION A:QUOTATION REQUIREMENTS:

1) Description of Supply and Delivery

{Brief Description of the goods required and the point of delivery}

2) Quotation prices should be based on:

for goods supplied from within Ethiopia; EXW – insured and delivered to [place of delivery]

or for goods supplied from outside of Ethiopia; CIP to [point of delivery].

3) The delivery period required is …………………[days/weeks/months] from date of order.

4) Quotations must be valid for [number of days] from the date for receipt given below.

5) The warranty/guarantee offered shall be: ………… months.

6) Quotations and supporting documents as specified in Section B must be marked with the

Procurement Number given above, and indicate your acceptance of the terms and conditions.

7) Quotations must be received, in sealed envelopes, no later than: [time] on [date]

8) The expected opening of Bid will be on [date]at [time] and the Procuring Entity/ (name of

organization) kindly invites the suppliers to attend the opening session. If the date and time are

changed, procuring entity will communicate to all suppliers.

9) Quotations must be returned to: [name of official and address]

…………………………………………………………………………………………

…………………………………………………………………………………………

10) The attached Schedule of Requirements at Section C, details the items to be purchased. You are

requested to quote your delivered price for these items by completing and returning Sections B

and C.

11) [List any other requirements e.g. the provision of samples]

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Quotations that are responsive, qualified and technically compliant will be ranked according to price.

Award of contract will be made to the lowest priced quotation by item or by total through the issue of a

Local Purchase Order.

Signed: ………………………………… Name………………………………………

Title/Position:…………………………………

For and on behalf of the Purchaser

Your quotation is to be returned on this Form by completing and returning Sections B and C including

any other information/certification required within this RFQ.

SECTION B: QUOTATION SUBMISSION SHEET

1) Currency of Quotation: Ethiopian Birr

2) Delivery period offered: ………… days/weeks/months from date of Purchase Order.

3) The validity period of this Quotation is: …… days from the date for receipt of Quotations.

4) Warranty period (where applicable):……………………..months.

5) We attach the following documents:

i. Section C of the Request for Quotations completed and signed;

ii. A copy of our renewed trading license;

iii. A copy of our VAT registration (or state if not required by Ethiopian law);

iv. [Insert any other documentation required by the Procuring Entity].

6) We confirm that our quotation is based on the terms and conditions stated in your Request for

Quotations referenced above.

7) We confirm that the prices quoted are fixed and firm for the duration of the validity period and

will not be subject to revision or variation.

Authorised By:

Signature: _________________________ Name: __________________________

Position: _________________________ Date: __________________________

Authorized for and on behalf of: (DD/MM/YY)

Company: ___________________________________________________

Address: ……………………………………………………………………………………….

If any additional documentation is attached to your quotation, a signature and authorization at

Section B and Section C is still required as confirmation that the terms and conditions of this RFQ

prevail over any attachments. If the Quotation is not authorized in Section B and Section C, the

quotation may be rejected.

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SECTION C:SCHEDULE OF REQUIREMENTS (TO BE PRICED BY BIDDER)

Item

No

Description of Goods

(Attach detailed specification if

necessary)

Unit of

Measure Quantity Delivered

Unit Price

Birr

Delivered Total

Price Birr

Total

The following attachments are appended to clarify the Description of Goods:

[List any attachments providing additional specification of the goods required]

Authorised By:

Signature: ___________________________ Name: ___________________________

Position: ___________________________ Date: ___________________________

Authorized for and on behalf of: (DD/MM/YY)

Company: ____________________________________________________________

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I. Purchase Order Format

Procurement Number: ………………….

To:{Name and Address of Supplier}

...........................................................................................................................................................................

...........................................................................................................................................................................

Your quotation reference [reference number] dated [date of quotation] is accepted and you are

required to supply the goods or perform the works or services {amend as appropriate} as detailed in

the listed attachments against the terms contained in this Purchase Order. This order is placed subject

to the attached RFQ, except where modified by the terms stated below.

SPECIFIC TERMS OF THIS PURCHASE ORDER:

Contract Sum: The Contract Sum is [state contract sum and currency].

1) Completion Period: The goods are to be delivered or the works or services performed {amend

asappropriate} within ……… days/weeks/months from the date of this Purchase Order.

2) Warranty: The warranty/guarantee period is: …………months.

3) Delivery point: Goods are to be delivered to, or the works or services provided at [physical

address]…………………………………………………………………………

4) Contact Person: Enquiries and documentation should be addressed to [name and position of

individual] at [address] ……………………………………..………………………….

Telephone Number:……………..……………… Fax Number ……………………….

5) Payment to Supplier:

Payment will be made in full [or state alternative agreed payment terms] on completion of

satisfactory performance of the contract. The following documentation must be supplied for

payments to be made:

i). An Invoice;

ii). A goods received note or completion certificate signed by [Authority responsible for

certifying satisfactory completion of the order];

iii). [List other documents required e.g. packing lists, certificates, shipping documents]

6) [Add any other specific terms of contract appropriate to the Local Purchase

Order].

7) The following documents attached as appendices form part of this Contract:

Section C of the RFQ [Schedule of Requirements/Schedule of Rates and Prices/or Activity

Schedule]

[List any other such documents –e.g. Terms of Reference for Consultant Services…]

8) Please confirm your receipt of this Local Purchase Order in writing.

Purchase Order Authorized by:

Signature:………………………………….. Name:………………………………………..…

Position:……………………………………………. Date:…………………………………………..

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158 / 234

will work on the project. Procurement processes however only apply to staff and consultants that are specifically contracted for the grant project.

ANNEX-2: SIMPLIFIED PROCUREMENT PLAN5

Name of SAIP: ___________

ESAP2 Procurement Plan / From ____ to____/

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2 Goods -

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159 / 234

2.1 Furniture

-

2.2 Equipment

-

2.2 Office

supplies

-

3.3 Audit costs

-

5

Direct

operational

costs

-

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160 / 234

ANNEX-3: CONTRACTS REGISTER

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#

Annex N-1: Guidelines for Reimbursement of Travel Costs and Per Diem

161 / 234

Annex N-1: Guidelines for Reimbursement of Travel Costs and Per Diem

Under the ESAP2 program, the Management Agency (MA) organizes various workshops,

training sessions and other events to which the MA invites participants representing SAIPs

or other institutions. Such events can take place either in Addis Ababa or on location

elsewhere in Ethiopia.

The MA has established a guideline for reimbursing costs to participants who attend such

events. These costs include travel/ transport and per-diem to be paid to participants.

In organizing such events the following strict guidelines will be considered and followed:

1. General Guidelines:

In principal, participants invited to a workshop or training session will be

accommodated in the hotel facility that has been selected by the MA. This means that

full boarding and lodging (accommodation and three meals per day) is offered to

participants and no per-diem will be paid. Participants will however receive an

amount of ETB 100 to pay for incidental expenditures such as additional drinks and

snacks.

In cases where participants have to organize their own accommodation, they will be

paid a fixed daily per-diem rate which covers all their expenses including

accommodation and meals.

In cases where the MA will partly cover the costs for accommodation and meals,

participants will receive an equivalent in cash to pay for those costs which are not

covered. For instance in cases where a lunch is not organized and paid for by the MA,

participants will receive the equivalent cost for such a lunch in cash. The MA will in

that case decide the exact amount to be paid.

Participants, who reside in the same place/city where an event is to take place, will

not receive a travel reimbursement or per-diem. However they will receive a fixed

allowance of ETB 100.00 for a full day attendance to the training/workshop.

If a per diem is paid, this will only be done for the exact number of days participants

attend the event plus the exact number of travel days they use to reach the location.

The number of travel days may vary based on duty station of the participant and is

subject to formal approval by the MA.

If a per-diem is paid, it will be based on the MA per-diem payment policy.

If transportation to the event is arranged and paid for by the MA, no travel costs will

be paid to participants.

The MA will not pay any costs for transportation to participants who reside in the

city/location where the event takes place.

In case there is any discussion on one or more of the guidelines mentioned in this

document, the final decision is with the MA and will be leading.

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2. Travel and Transportation:

Within the above general guidelines the following travel and transportation costs are eligible

for reimbursement.

The MA will reimburse transportation costs based on the actual cost made, which

must be in line with the official rates used by the Government.

Participant(s) must always provide an official receipt for their transportation. No

reimbursement will be made without official receipts.

If participants use public surface transport, the MA will double the one way

receipt/ticket to cover the costs for the return trip. This however will not be applied

in cases where participants use air transport. In such cases, participants always have

to submit/show a return ticket to claim their air transport cost.

In areas where official receipts are not available, the MA will pay, based on the fixed

rate set by the Road and Transportation Authority.

If participants use their organizations transport to come to the workshop/training,

and provided that the event takes place outside the city where they reside, then and

only then the MA will reimburse fuel cost. Fuel cost reimbursement will be based on

the actual costs listed on the submitted receipt if lower than the mileage calculation.

In case no receipt can be submitted, the mileage distance between the place of

residence and the place where the event takes place will be used as measure for

calculation. In that case, the MA takes as an average consumption, 1 liter fuel per 7

km. The reimbursement per liter is ETB 216. For example for a overall distance of 100

km, the reimbursement will be 100/7 = 14.28 x 21 = ETB 300.

If two or more participants use the same car, fuel expenses shall be reimbursed only

for one car used by the two or more participants. Fuel costs cannot be multiplied by

the number of participants.

Fuel purchased for personal vehicles is not reimbursable.

In cases where participants use air transport, the MA will reimburse the actual costs

of an economic class ticket. If a participant uses business class or other, the MA will

only cover the economic class fare based on the Ethiopian Airlines prevailing rate.

Costs are reimbursed upon submission of official receipts. The receipt must be the

official receipt of Ethiopian Airlines or a VAT registered travel agent. Unofficial

receipts will not be accepted by the MA.

In cases where the MA arranges and pays for air or surface transport of participants,

no reimbursement of any transportation costs to the participants will be made.

3. Per-Diem:

Per-diem payment to participants is based on the following policy.

In case accommodation (full boarding and lodging) is not organized by the MA, the

MA will pay a per-diem based on the following rates:

6 1 March 2014 rate. The amount can be adjusted only in case the price of fuel increases severely. This will be

up to the judgment of the MA.

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163 / 234

- When the event takes place in Addis Ababa, participants attending the event who

come from other places/regions than Addis Ababa will receive a rate of ETB

500/event day;

- When the event takes place outside Addis Ababa, participants attending the event

who come from other places/regions shall be paid a per-diem of ETB 400/event

day;

Above rates include accommodation, meals, daily subsistence and all other related

costs;

Per-diem shall be paid only for the number of days the event takes place plus the

number of travel days depending on the distance between the event place and duty

station of participants, to be decided by the MA. Participants who come to the event

late or leave the event early, shall be paid only for the number of days (or equivalent)

they attended the event;

If a participant spends maximum four hours (or half day), a pro-ratio per-diem (half

the daily per-diem) will be paid.

The MA does not pay a per-diem to drivers;

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164 / 234

Annex O

ESAP2 Timesheet Format for Time Spent by Staff

TIMESHEET ESAP2 Grant Project Registration Number: Name of the lead SAIP:

Name of staff / expert for which time is claimed:

Position / Function:

Name of Organisation:

Month: <<fill out, use Gregorian calender>> Year: <<fill out, use Gregorian Calendar>>

Calendar

day

Hours Worked

(minimum 1 and maximum 8 hours)

Per Diems

Requested

Place of Performance

(ESAP2 office, office own organisation, workshop,

etcetera; specify with name and place)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

TOTAL 0 0

Total working hours per month =

Total allowances days (per diem) =

Date, Signature of the Staff

Member

Date, Signature of the SAIP's

Project Coordinator

Date, Signature of the Project

Coordinator of the Lead SAIP

165 / 234


Note for Partners: Please use your contracted Log frame and Action Plan to fill out section 3. In order to avoid double work, you can update the same format each quarter. Make sure you save it under a different name. In addition, please note the following:

Report submission to the Management Agency: The report compilation shall take place within 10 days of the next quarter (both soft and hard copy). The report submission date will be as per contract agreement (Refer Article II, section 2.04).

This report must be completed and signed below by the contact person;

The information provided must correspond with the financial information provided in the interim Financial Report;

The report needs to be typed and completed. Incomplete and/or hand-written reports will not be accepted;

Please limit yourself to report on the reporting period indicated. Answers to the questions must cover the “current reporting period” as specified in section 1 below, unless specifically mentioned otherwise.

1. Core Information on Grantee and Grant Project

Note that this information should match with the grant agreement.

Full Legal Name Lead Organization

Official Address

Name Contact Person

Telephone Number

Partner Organizations

(if applicable. Delete this row if not

applicable)

1

2

3

Title of Grant Project

Contract Number

Contracted Grant Budget ($)

Grant project duration

Current Reporting Period

Target group

Total number of project

beneficiaries (Estimated)

Direct project beneficiaries: ………..(M= F= )

Indirect project beneficiaries………..( (M= F= )

Date Submission of Quarterly Report

Signature Contact Person(Director)

166 / 234

1.1 Project locations, partners, sectors and tools

Note that this information should match with the grant agreement

Sectors Tools

Ag

ric

ult

ur

e

Ed

uc

ati

on

He

alt

h

Wa

ter

a

nd

S

an

ita

tio

n

Ru

ra

l R

oa

ds

C

om

mu

ni

ty S

co

re

C

ar

d

Cit

ize

n

Re

po

rt

Ca

rd

G

en

de

r

Re

sp

on

si

ve

b

ud

ge

tin

g

Pa

rti

cip

at

or

y

Pla

nn

ing

a

nd

B

ud

ge

tin

g

Pu

bli

c

Ex

pe

nd

itu

re

T

ra

ck

ing

S

ur

ve

y

oth

er

Locations Name

Implementing organization (specify name of lead or sub-partner)

Region Woreda

Kebele Kebele Kebele

Region Woreda


Region Woreda


Region Woreda


Region Woreda


Please mark any changes with yellow highlight! E.g. covering more sectors than planned, using an additional tool.

167 / 234

2. Project Progress Summary

2.1 Which phase of the Social Accountability process are you currently in?

Please select only one phase per Woreda (mark with X).

Name of

Woreda

Phases of the Social Accountability process

Citizens mobilization

and access to

information: service

standards, targets,

planning, budgets

SA tools

application:

assessing

services &

identifying

needs,

including

vulnerable

groups

Interface meetings

between citizens

and service

providers: agree a

joint action plan

(reform agenda)

Monitoring the

implementation of

the joint action

plan developed

after the interface

meeting.

1

2

3

4

5

2.2 How do you feel you are doing in this reporting quarter?

Please be honest, so that the MA can provide support where needed. You can specify per Woreda

if needed.

Select only one answer: mark with X Please explain

We are doing very well

We are doing ok

We are not doing so well, we need support

2.3 Challenges and opportunities

2.3.1 What service issues are citizens identifying, e.g. during rapid

assessment, SA tools application, interface meetings, monitoring of

joint action plan implementation? Please explain what opportunities

and challenges you see for service improvements (e.g. budget

allocation).

MA Outcome

indicator 2.1

and OI 2.4


168 / 234

Maximum half page…

2.3.2 What opportunities and challenges are you observing with the

functioning of the SAC to involve citizens in Social Accountability?

Think about SAC leadership with SA tools application; motivation of SAC

members, representation of vulnerable groups in FDGs, relationship among

citizens/service providers/local government in the SAC, SAC collaboration with

CBOs, sustainability of the SAC, etc.

MA output

indicator

OI 2.1.1


2.3.3 What opportunities and challenges are you observing with the response

of service providers in the social accountability process?

MA

outcome

indicator

1.2


2.3.4 What opportunities and challenges do you experience in promoting

Social Accountability within the Kebeles (e.g. ongoing sensitization)

and beyond (e.g. collaboration with other NGOs, presentations at

government organized meetings, sharing in networks/forums.

MA OI

4.2.2


2.3.5 Considering the above, what actions do you propose to take adsvantage of the

opportunities and to face the challenges?


169 / 234

2.3.1 service issues raised by citizens:

2.3.2 functioning of the SAC:

2.3.3 service providers response to SA:

ESAP2 Quarterly Narrative Report Format

170 / 234

3. Project Progress Details according to Action Plan

3.1 Summary Table

Please fill out the summary table below for the current reporting period. If this is the first time you are using this form, please copy from the approved project

Logframe and Action Plan .

Note: This table is a copy of your action plan and should therefore correspond to 100% with it.

List as per the logframe:

List all planned

activities as per

Action Plan

Planned deadline for

activity

implementation

(day/month/year)

Status as the end of the

current reporting period

(select answer with X)

If activity has not started

as per the original plan, or

has been cancelled:

1) please explain why and

2) give a new deadline/activity, if applicable

Co

mp

lete

d

Sta

rte

d

no

t s

tar

ted

Ca

nc

ell

ed

Specific

objective(s):

Results/outputs

to achieve the

objective

Specific

Objective 1:


171 / 234


List all planned

activities as per

Action Plan


activity

implementation

(day/month/year)






has been cancelled:



Co

mp

lete

d

Sta

rte

d

no

t s

tar

ted

Ca

nc

ell

ed

Specific

objective(s):

Results/outputs

to achieve the

objective

Specific

Objective 2

Specific

Objective 3


172 / 234


List all planned

activities as per

Action Plan


activity

implementation

(day/month/year)






has been cancelled:



Co

mp

lete

d

Sta

rte

d

no

t s

tar

ted

Ca

nc

ell

ed

Specific

objective(s):

Results/outputs

to achieve the

objective

Please add more rows if needed!


173 / 234

3.2 Please provide details regarding your activities in the last 3 months.

3.2.1 Which learning events and meetings did you organize for citizens,

service providers and local government officials in the past quarter?

MA OI2.3; OI

4.1.1; OI 4.2.1

Type of meetings , learning events Number of meetings per Woreda in the reporting

quarter

Woreda name 1. 2. 3. 4. 5.

Launch workshop

Social Accountability (SA) training

Focus Groups Discussions(FGDs), or

other SA tool meetings

SA Committee meeting Woreda level

SA Committee meeting Kebele level

Ongoing sensitization sessions

Interface meetings

Service improvement Monitoring

meetings

Project review meeting with stakeholders

Other, please specify:

3.2.2 For each type of learning event or meeting in 3.2.1, give the number and

type of participants per Woreda in the table format below.

Impact

indicators: 1.3,

1.4, 1.6

NOTE: Make a separate table (copy and paste the next row) for each type of learning event

and meeting!

Type of

learning event

or meeting:

Total number of participating Citizens Service providers and

Local Government

To

tal

cit

ize

ns

Eld

erl

y

Ch

ild

ren

/

Yo

uth

Pe

op

le

Liv

ing

wit

h

HIV

-

AID

S

Pe

rso

ns

wit

h

Dis

ab

ilit

y

Oth

er

Ca

teg

ory

To

tal

Go

ve

rn

me

nt

Ser

vic

e

pro

vid

ers

Lo

cal

Ad

min

istr

ati

o

n,

co

un

cil/

pa

rty


174 / 234

Name of

Woredas M F M F M F M F M F M F M F M F M F

1.

2.

3.

4.

5.

Overall Total

If you selected “other category” please specify:

Type of

learning event

or meeting:

Total number of participating Citizens

Service providers

and Local

Government

To

tal

Eld

er

ly

Ch

ild

re

n/

Yo

uth

Pe

op

le

Liv

ing

wit

h H

IV-A

IDS

Pe

rs

on

s

wit

h

Dis

ab

ilit

y

Oth

er

Ca

teg

or

y

To

tal

Se

rv

ice

pr

ov

ide

rs

Ad

min

istr

ati

on

,

co

un

cil

/pa

rty

Name of

Woredas M F M F M F M F M F M F M F M F M F

1.

2.


175 / 234

3.

4.

5.

Overall Total

If you selected “other category” please specify:

Make more tables if needed: copy and paste the row above.

3.2.3 How does your organization adopt a gender-sensitive and social inclusion

approach in training sessions and meetings?

Please describe your approach (max. 100 words): How do you ensure that women and vulnerable groups

actively participate and that their specific needs are heard?

1. What training or capacity development support did you receive from the MA in the past quarter?

Type of

training/support

Mark with X if

training or support

was received

Number of

participating staff

Male Female

Pre-disbursement

training: SA tools, M&E

and Finance & Grants

MA monitoring visit

Learning benchmarks


176 / 234

Other

training/workshops,

please specify:

Direct support from MA (at MA office, your office, or via phone):

SA tools support

(CD&T)

M&E support

Grants and Finance

support

Communication

support

Internal audit by MA

team

Other support, please

specify:

Learning from other SAIPs:

Please specify, which

SAIP :

(max 100 words what did

you learn?)

2. Documentation to attach to this quarterly report as evidence:

Documentation Mark X if attached

Rapid assessment report

Social Accountability Training reports


177 / 234

Focus Group Discussants(FGD) formation and discussions (specify for CSC

or CRC)

Social Accountability tools consolidated results

Joint Action Plans (gender-sensitive reform agenda agreed during interface

meetings)

Case study or good practice from the field

Stakeholder review meeting report

SAC sustainability plan

Other, please specify:

3. Documentation to keep at the Woreda office or at your head quarters:

SAC MoU

SAC Meeting minutes

SA tool meeting minutes

Reports of FDGs and other citizen, interface meetings.

Attendance sheets, gender disaggregated, for training and meetings

On a scale from 1-4, how satisfied are you that citizens/women:

MA OI 3.1, OI 4.2.2,

outcome indicators

5.3, 2.5 , 3.4

Citizens… Name of

Woreda

1 very

satisfied

2 satisfied 3 rather

unsatisfied

4 very

unsatisfied

Know their rights

and

responsibilities to

plan, budget

implement and

1

2

3


178 / 234

monitor basic

service delivery

4

5

Know how to

approach service

providers (and

will approach!)

1

2

3

4

5

Consider the SA

tools as positive

(beneficial, will

use again)

1

2

3

4

5

Feel that service

providers are

responsive to

their needs

1

2

3

4

5

Women

organisations

have demanded

an improvement

of basic services

If your score is 3 rather unsatisfied or 4 very unsatisfied, please give an explanation:


179 / 234

On a scale of 1-4, how satisfied are you that service providers and local

officials (Administration, council/party):

MA Outcome

indicator 3.2

Service

providers…

Name of

Woreda

1 very

satisfied

2 satisfied 3 rather

unsatisfied

4 very

unsatisfied

actively seek the

views of citizens

concerning the

quality of service

delivery

1

2

3

4

5

respond to needs

expressed by

citizens’

1

2

3

4

5

If your score is 3 rather unsatisfied or 4 very unsatisfied, please give an explanation:


180 / 234

Annex Q

Final Narrative Report Format

Note for applicants: A Final Narrative Report needs to be submitted to the MA after the

ending of your grant agreement. When filling out this format, use your contracted LogFrame

and Action Plan as your guiding document on objectives and results envisaged, indicators

identified, activities implemented etc. In addition, please note the following:

This report must be completed and signed by the contact person;

The information provided below must correspond with the financial information

provided in the Final Financial Report.

The report needs to be typed and completed. Incomplete and/or hand-written reports

will not be accepted;

Please note that the Final Narrative Report entails two assessments:

1) An assessment of the activities implemented since the previous reporting period until

the end date of the grant agreement (section I), and

2) An overall assessment of the complete project period, the grant projects overall results

and achievements (section II).

1. Core Information on Grantee and Grant Project

Full Legal Name Lead Organization

Official Address

Name Contact Person

Telephone Number

Partner Organizations

(if applicable. Delete if not

applicable)

1.

2.

3.

Title of Grant Project

Grant Agreement Reference Number

Contracted Grant Budget ($)

Grant project duration (dd/mm/yy until dd/mm/yy)

Current Reporting Period (dd/mm/yy until dd/mm/yy)


181 / 234

Target sectors

(minimum 2, thick the box: )

Agriculture

Education

Health

Rural Roads

Water and Sanitation

Target woredas and kebeles

(minimum 3 woreda, maximum 5

woreda)

(minimum 3 kebeles per woreda)

1. (name of woreda) 1. (name of kebele)

2. (name of kebele)

3. (name of kebele)


2. (name of kebele)

3. (name of kebele)


2. (name of kebele)

3. (name of kebele)

4. (name of woreda, if

applicable. Delete if not

applicable)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)

5. (name of woreda, if

applicable. Delete if not

applicable)

1. (name of kebele)

2. (name of kebele)

3. (name of kebele)

Target group (Target groups are the groups/entities who will be

directly positively affected by the project at the specific

objectives level)

Date of Submission of Final

Narrative Report

Signature Contact Person

Annex Q: Final Narrative Report Format

182 / 234

Section I: Last Quarterly Reporting (please note that all questions in this section refer

to the last quarter of the implementation period)

2. Project Summary

(please describe shortly the implementation of the grant project in the current reporting

period. By doing so, please highlight your main achievements and challenges

encountered.

Limit yourself to a maximum of 250 words.)


183 / 234

3. Project Progress

Summary Table. Please fill out the summary table below for the current reporting period. List the

complete action plan here .

Specific objective(s) to be achieved (as per logframe)

Achieved results/outputs to achieve objective

List all planned activities as per Action Plan

Planned deadline for activity implementation

Status as per last day of reporting period (mark the right answer with ‘X’)

If a

ctiv

ity

del

ay

ed o

r ca

nce

lled

as

to t

he

ori

gin

al

pla

n:

3)

ple

ase

ex

pla

in

her

e w

hy

an

d

4)

sug

ge

st n

ew

dea

dli

ne/

act

ivit

y,

if a

pp

lica

ble

Co

mp

lete

d

Sta

rted

(a

t le

ast

10

% o

f th

e a

ctiv

ity

co

mp

lete

d)

No

t y

et s

tart

ed

Ca

nce

lled

(please enter

specific

objective 1

here)

1.1 Output 1

1.1.1 Activity

(contributing

to output 1)

(dd/mm/yy

)

1.1.2 Activity

(contributing

to output 1 –

you may add

more activities

to reach the

output if

applicable)

1.2 Output 2

1.2.1 Activity

(contributing

to output 2)

1.2.2 Activity

(contributing

to output 2)

1.2.3 Activity

(contributing

to output 2 –

you may add

more activities

to reach the

output if

applicable)

1.3 Output 3

(you may

add more

outputs if

applicable)

1.3.1 Activity

1.3.2 Activity


184 / 234

Note:

Please complete this table.Several outputs and activities will be necessary for achieving each specific

objective, and perhaps several activities for achieving one output.

You may add more lines for activities leading to one output or outputs leading to one of your

specific objectives: click on the right mouse button, select “insert row”

or merge lines if several activities contribute to one output: select the cells to be merged, click on

the right mouse button and select “merge cells”

This table is a copy of your action plan and should therefore correspond to 100% with

it.

Specific objective(s) to be achieved (as per logframe)

Achieved results/outputs to achieve objective

List all planned activities as per Action Plan

Planned deadline for activity implementation

Status as per last day of reporting period (mark the right answer with ‘X’)

If a

ctiv

ity

del

ay

ed o

r ca

nce

lled

as

to t

he

ori

gin

al

pla

n:

1)

ple

ase

ex

pla

in h

ere

wh

y a

nd

2

) su

gg

est

new

d

ead

lin

e/a

ctiv

ity

, if

a

pp

lica

ble

Co

mp

lete

d

Sta

rted

(a

t le

ast

10

% o

f th

e a

ctiv

ity

co

mp

lete

d)

Co

mp

lete

d

Sta

rted

(a

t le

ast

10

% o

f th

e a

ctiv

ity

co

mp

lete

d)

(enter specific

objective 2

here)

2.1 Output 2.2.1 Activity



(enter specific

objective 3

here)

3.1 Output

3.3.1 Activity

3.3.2 Activity




185 / 234

Section II: Final Reporting (please note that all questions in this section refer to the

complete grant project’s implementation period)

4. Achievement of the objectives

4.1 Describe to what extent your grant project has reached the overall program

objective.

To what extent are outputs/results and specific objectives contributing to reaching the

overall project objective “to strengthen the use of social accountability tools, approaches

and mechanisms (…) as a means to make basic service delivery more equitable, effective,

efficient, responsive and accountable”?

(Max. 200 words)

4.2 Has your grant project experienced any unforeseen positive or negative

results in relation to your specific objectives and the overall program objective

Unforeseen positive results Unforeseen negative results

Specific objective 1:

-

-

-

-

-

-

Specific objective 2:

-

-

-

-

-

-

…

Overall objective:

-

-

-

-

-

-

4.3 Describe the outcome on both the final beneficiaries and the target group

(if different)?

(Max. 150 words)

1) Please explain how you assessed the outcomes

2) What were the main outcomes of your assessment?

4.4 Please describe how you have monitored the achievement of the overall

and specific objective of your grant project.

(Max. 150 words)

(Please describe your monitoring methodology here)


186 / 234

5. Please answer the following questions:

(please tick (√) one of the options in the vertical bar. If you have important (negative)

observations that impacted on the achievement of the questions, please add them in the

column “important observations”). This questionnaire relates to your whole grant

implementation period.

Questions to be answered for the whole

project implementation duration:

Yes

(co

mp

lete

ly)

Pa

rtia

lly

(to

at

lea

st

50

%)

No

Imp

ort

an

t

ob

serv

ati

on

s

Does your organization use social

accountability tools (incl. gender and

social inclusion tools) in trainings and

other support measures to empower

citizens/citizens’ groups?

If yes, please list and briefly describe the tools you used. (Max. 100 words)

Did your organization participate in a

benchmarking meeting?

Did your organization share good

practices with other organizations

during these benchmarking meetings?

(If so, please attach documentation on

good practice to this report)

Did your organizations implement

components of good practices from other

organizations participating in ESAP2?

If so, please detail which ones. (Max. 100 words)

Was your organization trained on how to

encourage and support woreda and

communities to use social accountability

tools?

According to your assessment, are

citizens or citizens groups now more

aware of their responsibilities to plan,

budget, implement and monitor basic

service delivery then before ESAP2

started?


187 / 234

If yes,

1) how did you measure this awareness raise?

2) please indicate the results of this assessment.

Did your organization organize interface

meetings between citizens/citizens

groups, public service providers and

woredas on planning and budgeting? (If

so, please attach evidence to this report,

e.g. list(s) of participants)

If yes, please fill in the following table with numbers only:

Number of interface meetings:

Total number of participants:

Total number of woman participating:

Total number of children participating:

Total number of elderly participating:

Total number of youth participating:

Total number of people with disabilities:

Total number of people living with HIV or AIDS:

Total number of other socially excluded people:

Did your organization organize interface

meetings between citizens/citizens

groups, public service providers and

woredas on implementing and

monitoring basic service delivery? (If so,

please attach evidence to this report,

e.g. list(s) of participants)











Did your organization perform training

sessions for citizens/citizens groups on


188 / 234

their rights and responsibilities to plan,

budget, implement and monitor basic

service delivery? (If yes, please attach

evidence to this report, e.g. training

outline and list(s) of participants)












citizen and citizen groups now more

empowered to demand for better quality

basic service delivery then before ESAP2

started?

If yes,

1) how did you measure this empowerment

2) please indicate the results of this assessment

According to your assessment, did

woreda officials actively sought the views

of their citizens concerning the

development needs and the quality of

public services since ESAP2 started?

1) Please explain how you assessed this

2) On a scale from 1-4 (1= very satisfied, 2= satisfied, 3= rather unsatisfied, 4= very

unsatisfied), how happy are you with his observation?

Please indicate number and short explanation for your choice

Did your organization train

citizens/citizen groups on how to

demand for better public services? (If

yes, please attach evidence to this

report, e.g. training outline and list(s)

of participants)





189 / 234








If yes, did your organization adopt a

gender-sensitive and social inclusion

approach to this/these trainings?

If yes, please describe your approach (max. 100 words)

According to your assessment, are basic

service providers now delivering more

services responding to community and

citizen needs then before ESAP2 started?

If yes, please give concrete evidence on why, i.e. what happened in this regard during the

reporting period? (Max 100 words)

Did the number of basic services in the

sectors you work in increase? (If so,

please attach evidence to your report,

i.e. copy of budget detailing allocations

to your sectors)


citizens more satisfied with the provision

of basic services now compared to

September 2012?

If yes,

1) how did you measure this satisfaction?

2) please indicate the results of this assessment.

Was any kind of forum for citizen

participation institutionalized (such as a

joint service improvement action

committee for example)? (If yes, please

attach evidence)


190 / 234

If yes, please give details on how it was institutionalized and how it works (incl. number of

meetings that took place, approx. number of participants (incl. women and socially

excluded), etc.)

Did your organization train woreda

officials and communities on social

accountability tools incl. participatory

budget planning, social audits and

gender mainstreaming? (If yes, please

attach evidence to this report, e.g.

training outline and list(s) of

participants)

If yes, please fill in the following table:

Number of training events:


Number of woman participating:

Number of disabled people:

Other socially excluded people:

Are regular interface consultative

meetings between citizens, CSOs and

service deliverers institutionalized?

Are joint service improvement action

plans developed?

If yes, are they incorporating

citizens’/citizen groups’ needs?

If yes, are gender and social inclusion

mainstreamed in these joint service

improvement action plans? (If yes,

please attach evidence, i.e. one action

plan where you highlight gender and

social inclusion issues)

Note:

For all questions answered with yes, please provide evidence and attach these as annexes to

your report. Only those statements that have supporting documents will be taken into

account.


191 / 234

6. Please give details on the following key areas of ESAP2.

6.1 Contribution to Social Accountability

6.1.1 Please describe your successes in empowering citizens and local

governments on the use of Social Accountability tools, approaches and

mechanisms? (Max. 150 words)

6.1.2 Please describe the challenges you have experienced in empowering

citizens and local governments on the use of Social Accountability tools,

approaches and mechanisms? How have you tackled them? (Max. 150 words)

6.2 Social Inclusion and Vulnerability. In ESAP2, specific attention is paid to include

socially vulnerable groups, such as women, children, people living with HIV/Aids, people

with disabilities, and the elderly.

6.2.1 In what activities and processes have socially excluded groups

participated and how? (Max. 150 words)

6.2.2 Please specifically explain how your grant project has mainstreamed the

promotion of gender equality. (Max. 100 words)

Please start with the sentence “As a result of the project, women are now.... This is the result of …”

6.2.3 What specific benefits and results have been achieved in your grant

project for socially excluded groups? (Max. 150 words)

6.3 Assessment of the Co-operation and Partnership(s)

6.3.1 How do you assess the cooperation with the target group?

1) Please describe the cooperation with the target groups as identified in your grant application.

2) On a scale from 1-4 (1= very satisfied, 2= satisfied, 3= rather unsatisfied, 4= very unsatisfied),

how do you rate the cooperation?

3) Please briefly explain your rating (including major challenges encountered).


192 / 234

6.3.2 How do you assess the cooperation with the woredas and woreda officials

in your target area? Please describe the cooperation. How has the cooperation affected

the project implementation, in positive and/or negative ways?

1) Please describe your cooperation with woredas and woreda officials




6.3.3 How do you evaluate the co-operation and contact with the ESAP2

Management Agency?

1) Please describe your cooperation with the Management Agency




6.3.4 (if applicable) Please describe how your grant project has been linked to

other projects. Have other projects in the area been implemented during the

implementation of your grant project and how have you aligned with these projects, how

have did you find synergy, what links were established?

6.3.5 (if applicable in case the organization has received a grant in the

framework of ESAP1) Please describe to what extent your ESAP2 grant project

has built on results achieved within the ESAP1 project. Have the results of the

ESAP2 grant project complemented the results of the ESAP1 grant project?

7. Best practices and lessons learnt (please note that all questions in section 7 refer to

the complete grant project’s implementation period)

7.1 Please describe 3 best practices form your grant implementation

7.2 What has your organization/partner learnt from the grant project and how

has this learning been utilized and disseminated?


193 / 234

9. Financial Performance. Please answer the following questions. Use the Final Financial

Report, which you will submit with this Final Narrative Report as the basis for your

assessment.

9.1 Please provide a short analysis of the budget performance / utilization of the grant.

9.2 Variance Analysis: please report on major budget variances (if any), that can be

observed in your Final Financial Report. Provide explanations.

7.3 What would you advise a new organization participating in ESAP3? Please

indicate 3 important lessons or areas of attention.

8. Sustainability

8.1 To what extent will the benefits of the grant project’s continue after ESAP2

funding ceased? Please give concrete examples.

8.2 To what extent are positive side effects and/or spill overs expected from

your grant project?

Annex R: ESAP2 Audit ToR for SAIPs

194 / 234

Annex R:

ToR for the ESAP2 Audit Report on the Quarterly and Final Financial Reports of Grants to SAIPs as part of PBS (a World Bank financed project)

1. Background

The following are the Terms of Reference (‘ToR’) for Social Accountability Implementing

Partners (SAIPs), having to engage an external Auditor to perform financial verifications and

to report in connection with the ESAP2 Grant Agreement.

Where in these ToR the ‘MA’ is mentioned this refers to the Management Agency of ESAP2,

which has signed the Grant Agreement with the SAIP and is providing the grant funding. The

Management Agency is not a party to the agreement between the SAIP and the Auditor.

‘TheSAIP’ refers to the organisation that is receiving the grant funding and that has signed

the Grant Agreement with the MA. The SAIP is responsible for providing a Financial Report

for the action financed by the Grant Agreement which complies with the terms and

conditions of the Grant Agreement and for ensuring that this Financial Report can be

reconciled to the SAIP’s accounting and bookkeeping system and to the underlying accounts

and records. The SAIP is responsible for providing sufficient and adequate information in

support of the Financial Report. The SAIP accepts that the ability of the Auditor to perform

the procedures required by this engagement effectively depends upon the SAIP, and as the

case may be his partners, providing full and free access to the SAIP’s staff and its accounting

and bookkeeping system and underlying accounts and records.

‘The Auditor’ is responsible for performing the audit in accordance with this ToR, and for

submitting an Audit Report. ‘Auditor’ refers to the firm contracted for this engagement, and

who has the appropriate authority from a professional, legal or regulatory body, as defined in

section 3.3.1.3 of ESAP2’s SAIP Operational Manual.

The SAIP is required to submit to the MA in total 3 Audit Reports, produced by an external

auditor. Exact deadlines and reporting periods are stipulated in the grant agreement

between the SAIP and the MA.

The MA needs to approve the selected audit firm / auditor prior to the actual

undertaking of the task described in the present ToR.

2. Objective of the project audit


195 / 234

The objective of the audit of the Quarterly and Final Financial Reports is to enable the

auditor to express a professional opinion(s) on the financial position of the grant project at

the end of a set period, as stipulated in the Grant Agreement, and on funds received and

expenditures incurred for the relevant accounting period.

The project books of accounts provide the basis for preparation of the Financial Reports by

the SAIP and are established to reflect the financial transactions in respect of the grant

project. The SAIP maintains adequate internal controls and supporting documentation for

transactions.

3. Preparation of the quarterly and final financial reports

The responsibility for the preparation of the Quarterly and Final Financial Reports including

adequate disclosure is that of the SAIP. The SAIP is also responsible for the selection and

application of accounting policies. The SAIP would prepare the Financial Reports in

accordance with the general and specific accounting policies laid down in section 4.1 of the

SAIP Operational Manual. The Auditor shall also reconcile the information in the Financial

Report to the SAIP’s accounting system and records.

The auditor is responsible for forming and expressing opinions on the Financial Reports .

The auditor shall carryout the audit of the grant project in accordance with the International

Standards on Auditing (ISA), as promulgated by the International Federation of Accountants

(IFAC). As part of the audit process, the auditor may request the SAIP written confirmation

concerning representations made in connection with the audit

4. Scope of the audit

As stated above, the audit of the project will be carried out in accordance with International

Standards on Auditing (ISA) promulgated by the International Federation of Accountants

(IFAC), and will include such tests and auditing procedures as the auditor will consider

necessary under the circumstances. Special attention should be paid by the auditor as to

whether the:

(a) ESAP2 grant project financing has been used in accordance with the conditions of the

relevant grant agreement, with due attention to economy and efficiency, and only for the

purposes for which the financing was provided – please see the grant agreement between the

ESAP2 MA and the SAIP and all its annexes;


196 / 234

(b) Goods, works and services financed have been procured in accordance with the

Procurement Manual for SAIPs (annex N to the SAIP Operational Manual) . Particular

attention shall be paid by the auditor to procurement rules, as provided in section 4.2 of the

SAIP Operational Manual, and whether the expenses were incurred in accordance with such

rules, by examining the underlying documents of the procurement and purchase process.

Where the auditor finds issues of non-compliance with procurement rules, he/she reports

the nature of such events as well as their financial impact in terms of ineligible

expenses;(d)Report checking-All necessary supporting documents, records, and accounts

have been maintained in respect of all project activities, including expenditures reported in

Quarterly/Final Financial Reports. The auditor is expected to verify that respective Reports

issued during the period were in agreement with the underlying books of account. The

auditor must verify that the information provided in the Quarterly/Final Financial Reports is

mathematically correct and accurate. The auditor shall also verify that the budget in the

Financial Report corresponds with the budget of the Grant Agreement and that the expenses

incurred were indicated in the budget of the Grant Agreement. If there were any

amendments to the Budget for the Grant Agreement in the previous reporting period(s), the

Auditor shall verify that such changes have been taken into account in the Quarterly/Final

Financial Report.

(c) Separate accounts (if used) have been maintained in accordance with the provisions of

the grant agreement and all its annexes and funds disbursed out of the accounts were

used only for the purpose intended in the grant agreement;

(d) National laws and regulations have been complied with;

(e) SAIP Operating Manual has been complied with, and that the financial and accounting

procedures approved for the project were followed and used;

(f) Financial performance of the project is satisfactory;

(g) Assets procured from project funds exist and there is verifiable ownership by the SAIP

or beneficiaries in line with the grant agreement.

(h) Eligibility checking-Ineligible expenditures included in previous Quarterly Reports are

identified. These should be separately noted in the Audit Report. The Auditor must

ensure, for each expense, the compliance to the eligibility criteria set out in sections

2.1.3 and 5.3 of the SAIP Operational Manual:

a. The costs are incurred during the project’s lifetime; with the exception of the

auditor’s costs for the Final Financial Report;

b. The costs are indicated in the total estimated budget for the project, which is part of

the grant agreement;

c. The costs are necessary for the implementation of the project which is the objective

of the grant, and have not been charged to another project as well (including

salaries);

d. The costs are identifiable and verifiable, meaning that when they are incurred by

the grant beneficiary, they can be recorded in the organization’s accounting system

and can be supported by original documents;

e. Special attention should be given to salaries, verifying that the fees included in the

Financial Report correspond to the actual time worked on the project, registered via

timesheets;


197 / 234

f. The expenses comply with the requirements of applicable tax and social legislation;

g. The costs are reasonable (fair market price), justifiable and comply with the

requirements of sound procurement practice

In complying with International Standards on Auditing, the auditor is expected to pay

particular attention to the following matters:

a) Fraud and Corruption: Consider the risks of material misstatements in the financial

statements due to fraud as required by ISA 240: The Auditor’s Responsibility to Consider

Fraud in an Audit of Financial Statements. The auditor is required to identify and assess

these risks (of material misstatement of the financial statements) due to fraud, obtain

sufficient appropriate audit evidence about the assessed risks; and respond appropriately

to identified or suspected fraud;

b) Laws and Regulations: In designing and performing audit procedures, evaluating

and reporting the results, consider that noncompliance by the implementing agency with

laws and regulations may materially affect the financial statements as required by ISA

250: Consideration of Laws and Regulations in an Audit of Financial Statements;

c) Governance: Communicate audit matters of governance interest arising from the audit

of financial statements with those charged with governance of an entity as required by

International Standards on Auditing 260: Communication of Audit Matters with those

Charged with Governance.

d) Risks: In order to reduce audit risk to an acceptable low level, determine the overall

responses to assessed risks at the financial statement level, and design and perform

further audit procedures to respond to assessed risks at the assertion level as required by

Internal Standard on Auditing 330: the Auditor’s Procedures in Response to Assessed

Risks.

5. Quarterly / final financial reports

The auditor is required to verify all Quarterly Financial Reports for the relevant reporting

period, submitted to the Management Agency, which are used as a basis for disbursing

advance payments to the SAIP. The auditor will apply such tests and auditing procedures as

considered necessary under the circumstances.

The total disbursement should be part of the overall reconciliation.

The auditor shall verify that the grant project’s Quarterly/Final Financial Reports submitted

to the MA in the relevant period comply with the conditions of the grant agreement’s Special

and General Conditions, that they were prepared in conformity with the templates provided

in the SAIP Operational Manual, that they have been prepared in accordance with the agreed

accounting standards (see paragraph 3 and 4 above) and give a true and fair view of the

financial position of the project at the relevant date and of resources and expenditures for

the financial period ended on that date.

http://www.ifac.org/Members/Source_Files/Auditing_Related_Services/2007_Handbook/2007_A080_ISA_240.pdf





198 / 234

The Quarterly/Final Financial Reports should include:

(a) A statement of funds received, showing funds from the MA and of expenditures

incurred;

(b) A summary of the activity in the separate bank account (opening and end balance);

(c) A list of fixed assets acquired or procured to date from the project funds

As an Annex to the Financial Reports, the auditor should prepare a reconciliation of the

amounts as “received by the Project from the Management Agency or paid directly from

World Bank”, with those shown as being disbursed by the Management Agency (as

confirmed by the Management Agency).

7. Separate account

In conjunction with the audit of the Quarterly/Final Financial Reports, the auditor is also

required to review the activities of the separate bank account associated with the grant

project. The separate bank account usually comprises:

Advance payments received from Management Agency;

Interest that may have been earned on the accounts;

Withdrawals related to project expenditures;

Closing and opening balances.

The auditor should examine the eligibility of financial transactions during the period under

examination and fund balances at the end of such a period, the operation and use of the

separate account in accordance with the relevant agreements, and the adequacy of internal

controls.

8. Audit report

The Audit Report should include primarily the audited Quarterly/Final Financial Reports of

the Grant. The auditor will issue an opinion on the Quarterly/Final Financial Reports of the

Grant. The Audit Report of the project accounts should include a separate paragraph

summarizing key internal control weaknesses and non-compliance with the financing

agreement terms. If there are no such findings then the auditor should clearly specify in the

Report.

9. Management letter

In addition to the Audit Report, the auditor will prepare a management letter reporting any

internal control and compliance issues noted. In addition, the management letter will also

comment on prior period audit finding. Any management letter findings should as a

minimum (a) clearly state the findings and quantify where ever possible and relevant (b)

state the implications and impact (b) state the management response (d) state the auditor’s

recommendation. The management letter is composed of:


199 / 234

(a) Detail Report on Internal Control Observations:-

i.Give comments and observations on the accounting records, systems and controls

that were examined during the course of the audit;

ii.Identify specific deficiencies or areas of weakness in systems and controls, and make

recommendations for their improvement;

(b) Detail Report on Compliance and Implementation

i.Report on the degree of compliance of each of the financial covenants in the financing

agreement and give comments, if any, on internal and external matters affecting

such compliance;

ii.Any findings having eligibility implications. Clearly identify and state ineligible

expenditures;

iii.Bring to the recipient’s attention any other matters that the auditor considers

pertinent;

iv.Communicate matters that have come to his/her attention during the audit which

might have a significant impact on the implementation of the project;

(c) Report on Prior period audit findings- Give comments on previous audits’

recommendations that have not been satisfactorily implemented;

10. Available information

The auditor should have access to all legal documents, correspondences, and any other

information associated with the grant project and deemed necessary by the auditor. The

auditor will also obtain confirmation of amounts disbursed by the MA to the SAIP. Available

information should include copies of the signed grant agreement between the MA and the

SAIP with all its annexes, all Quarterly Reports (Narrative and Financial) as submitted to the

MA and all other official correspondence with the MA.

11. General

The auditor should submit the Audit Report to the SAIP’s representative (usually the head of

the organaization) rather than to any staff member of the project entity. The agent should

then promptly forward one copy of the full Audit Report and accompanying

statements and the Management letter to the Management Agency with a cover letter

and management response as well as an action plan to address any findings and

qualification points raised by the auditor no later than 6 weeks after the end of the

accounting period to which the audit relates.

It is highly desirable that the auditor obtains an understanding of the terms and conditions

of the grant agreement, by reviewing the grant agreement and all its annexes. For this

purpose, the Auditor shall obtain a copy of the grant agreement (signed by the SAIP and the

MA) with all the annexes. The Auditor obtains and reviews the Report (which includes a

narrative and a financial section) as per the terms laid down in these Terms of Reference and

its Annexes.

Annex S: ESAP2 Financial Reporting Format

200 / 234

Annex s:

ESAP2 Financial Reporting Format

Statement of Budget versus

Expenditure of the Grant Fund

Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

No

. O

f U

nit

s

Un

it R

ate

All

oc

ate

d

Am

ou

nt

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

To

tal

am

ou

nt

sp

en

t

Am

ou

nt

Re

ma

inin

g

% o

f

Uti

liz

ati

on


1.1 Staff Salaries

1.1.1 Program Staff

1.1.1.1 Project Coordinator 0

0 0 0 0 0 0 0 0

0

0

0%

1.1.1.2 Social Accountability Expert 0

0 0 0 0 0 0 0 0

0

0

0%

1.1.1.3 M&E Expert 0

0 0 0 0 0 0 0 0

0

0

0%

1.1.2 Support Staff

1.1.2.1 Project Accountant 0

0 0 0 0 0 0 0 0

0

0

0%

1.1.2.2 Procurement Officer 0

0 0 0 0 0 0 0 0

0

0

0%

1.1.2.3 Driver 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Staff Salaries 0

0 0 0 0 0 0 0 0

0

0

0%


1.2.1 Social Accountability Trainer 0

0 0 0 0 0 0 0 0

0

0

0%

1.2.2

Consultant for Development of

SA Tools 0

0 0 0 0 0 0 0 0

0

0

0%

1.2.3

Consultant for mid and final

evaluation 0

0 0 0 0 0 0 0 0

0

0

0%

1.2.4 ………….. 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Consultancy

Service 0

0 0 0 0 0 0 0 0

0

0

0%

Total Service - Human

Resource 0

0 0 0 0 0 0 0 0

0

0

0%

2. 2. Goods

2.1 2.1 Furniture

2.1.1 2.1.1 Office table 0

0 0 0 0 0 0 0 0

0

0

0%

2.1.2 2.1.2 Office chair 0

0 0 0 0 0 0 0 0

0

0

0%

2.1.3 2.1.3 ….. 0

0 0 0 0 0 0 0 0

0

0

0%


201 / 234

Subtotal Furniture 0

0 0 0 0 0 0 0 0

0

0

0%

2.2 Equipment

2.2.1 2.2.1 Desktop Computer 0

0 0 0 0 0 0 0 0

0

0

0%

2.2.2 2.2.2 Printer 0

0 0 0 0 0 0 0 0

0

0

0%

2.2.3 2.2.3……. 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Equipment 0

0 0 0 0 0 0 0 0

0

0

0%

2.3 Office supplies

2.3.1 Stationary supplies 0

0 0 0 0 0 0 0 0

0

0

0%

2.3.2

Consumable supplies

(refreshment, detergents, etc) 0

0 0 0 0 0 0 0 0

0

0

0%

2.3.3 …….. 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Office supplies 0

0 0 0 0 0 0 0 0

0

0

0%

Total Goods 0

0 0 0 0 0 0 0 0

0

0

0%

3.

3. Monitoring and

Evaluation

3.1 Travel

3.1.1 Travel costs 0

0 0 0 0 0 0 0 0

0

0

0%

3.1.2 ………….. 0

0 0 0 0 0 0 0 0

0

0

0%

3.1.3 ………….. 0

0 0 0 0 0 0 0 0

0

0

0%

3.1.4 ………… 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Travel 0

0 0 0 0 0 0 0 0

0

0

0%

3.2 Per Diem

3.2.1 Per diem 0

0 0 0 0 0 0 0 0

0

0

0%

3.2.2

0

0 0 0 0 0 0 0 0

0

0

0%

3.2.3

0

0 0 0 0 0 0 0 0

0

0

0%

3.2.4

0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Per Diem 0

0 0 0 0 0 0 0 0

0

0

0%

3.3 Audit Costs

3.3.1

Audit / Report of Factual

Findings Costs 2012 0

0 0 0 0 0 0 0 0

0

0

0%

3.3.2



0 0 0 0 0 0 0 0

0

0

0%

3.3.3



0 0 0 0 0 0 0 0

0

0

0%

Subtotal Audit Costs 0

0 0 0 0 0 0 0 0

0

0

0%

Total Monitoring and

Evaluation 0

0 0 0 0 0 0 0 0

0

0

0%

4.

Program Deliveries /

Activities

4.1 4.1 Trainings

4.1.1 Training 1 (use the 'Detailed 0

0 0 0 0 0 0 0 0

0

0

0%


202 / 234


4.1.2


Training Sheet' for calculations) 0

0 0 0 0 0 0 0 0

0

0

0%

4.1.3

0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Trainings 0

0 0 0 0 0 0 0 0

0

0

0%


4.2.1 4.2.1 Survey on … 0

0 0 0 0 0 0 0 0

0

0

0%

4.2.2 4.2.2 Assessment on …… 0

0 0 0 0 0 0 0 0

0

0

0%

4.2.3 4.2.3 …… 0

0 0 0 0 0 0 0 0

0

0

0%

Subtotal Trainings 0

0 0 0 0 0 0 0 0

0

0

0%

Total 4. Program Deliveries

/ Activities 0

0 0 0 0 0 0 0 0

0

0

0%


5.1

0

0 0 0 0 0 0 0 0

0

0

0%

5.2

0

0 0 0 0 0 0 0 0

0

0

0%

5.3

0

0 0 0 0 0 0 0 0

0

0

0%

Total Direct Operational

Costs 0

0 0 0 0 0 0 0 0

0

0

0%

6. Total Direct Costs (1-5) 0

0 0 0 0 0 0 0 0

0

0

0%

7.

Provision for Contingency (5%

of Total Direct Costs)** 0

0 0 0 0 0 0 0 0

0

0

0%

8.

Administrative Costs (7% of

Total Direct Costs)*** 0

0 0 0 0 0 0 0 0

0

0

0%

9.

Total Project Costs (6+7+8)

in ETB 0

0 0 0 0 0 0 0 0

0

0

0%

Notes:

It is not allowed to insert budget lines that are not part of the contracted grant budget. Any grant budget adjustment is

subject to approval by the MA. See also section 2.5.4.3 of the Operational Manual and the grant agreement.

* Please indicate the period of your grant agreement with the MA. Please consult your grant agreement on the exact project

duration.

** Please note that prior approval is required for the use of contingencies. Costs can thus only be included in your financial

report when the SAIP has received approval for the use of the contingency for the specific costs by the MA.

*** Please note that no supporting documents are required to claim the 7% administration costs


203 / 234

Statement of Expenditure of the Grant Fund per month

Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

1

Mo

nth

2

Mo

nth

3

To

tal

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0

Subtotal Staff Salaries 0 0 0 0



0

1.2.2 Consultant for Development of SA Tools

0

1.2.3 Consultant for mid and final evaluation

0

1.2.4 …………..

0

Subtotal Consultancy Service 0 0 0 0

Total Service - Human Resource 0 0 0 0

2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0

Subtotal Furniture 0 0 0 0

2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0

Subtotal Equipment 0 0 0 0

2.3 Office supplies


204 / 234


0

2.3.2 Consumable supplies (refreshment, detergents, etc)

0

2.3.3 ……..

0

Subtotal Office supplies 0 0 0 0

Total Goods 0 0 0 0

3. 3. Monitoring and Evaluation

3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0

Subtotal Travel 0 0 0 0

3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0

Subtotal Per Diem 0 0 0 0

3.3 Audit Costs

3.3.1 Audit / Report of Factual Findings Costs 2012

0


0


0

Subtotal Audit Costs 0 0 0 0

Total Monitoring and Evaluation 0 0 0 0


4.1 4.1 Trainings

4.1.1 Training 1 (use the 'Detailed Training Sheet' for calculations)

0


0

4.1.3 ………………..

0

Subtotal Trainings 0 0 0 0


4.2.1 Survey on …

0

4.2.2 Assessment on ……

0

4.2.3 ……

0


Total 4. Program Deliveries / Activities 0 0 0 0


5.1 ……………..

0


205 / 234

5.2 ………………………

0

5.3 ………………

0

Total Direct Operational Costs 0 0 0 0

6. Total Direct Costs (1-5) 0 0 0 0

7. Provision for Contingency (5% of Total Direct Costs)**

0 0 0

0

8. Administrative Costs (7% of Total Direct Costs)***

0 0 0

0

9. Total Project Costs (6+7+8) in ETB 0 0 0 0

Notes:

It is not allowed to insert budget lines that are not part of the contracted grant budget. Any grant budget adjustment is subject to

approval by the MA. See also section 2.5.4.3 of the Operational Manual and the grant agreement.

* Please indicate the period on which you are reporting. Please consult your grant agreement on the reporting periods.





206 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

4

Mo

nth

5

Mo

nth

6

To

tal

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


207 / 234

2.3.2

Consumable supplies (refreshment, detergents,

etc)

0

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings

4.1.1

Training 1 (use the 'Detailed Training Sheet' for

calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0





208 / 234

5.1 ……………..

0

5.2 ………………………

0

5.3 ………………

0



7.

Provision for Contingency (5% of Total Direct

Costs)**

0 0 0

0

8.

Administrative Costs (7% of Total Direct

Costs)***

0 0 0

0


Notes:




** Please note that prior approval is required for the use of contingencies. Costs can thus only be included in your financial report

when the SAIP has received approval for the use of the contingency for the specific costs by the MA.



209 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

7

Mo

nth

8

Mo

nth

9

T

ota

l

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


0


210 / 234

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings

4.1.1


calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0




5.1 ……………..

0

5.2 ………………………

0


211 / 234

5.3 ………………

0



7.


Costs)**

0 0 0

0


0 0 0

0


Notes:




** Please note that prior approval is required for the use of contingencies. Costs can thus only be included in your

financial report when the SAIP has received approval for the use of the contingency for the specific costs by the MA.



212 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses Month

10

Month

11

Month

12

Total

amount

spent


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


213 / 234


0

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings

4.1.1


calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0




5.1 ……………..

0


214 / 234

5.2 ………………………

0

5.3 ………………

0



7.


Costs)**

0 0 0

0


0 0 0

0


Notes:




** Please note that prior approval is required for the use of contingencies. Costs can thus only be included in your

financial report when the SAIP has received approval for the use of the contingency for the specific costs by the MA.



215 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

13

Mo

nth

14

Mo

nth

15

T

ota

l

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


216 / 234


0

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings

4.1.1


calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0





217 / 234

5.1 ……………..

0

5.2 ………………………

0

5.3 ………………

0



7.


Costs)**

0 0 0

0


0 0 0

0


Notes:

It is not allowed to insert budget lines that are not part of the contracted grant budget. Any grant budget adjustment is subject to approval by the MA. See also section

2.5.4.3 of the Operational Manual and the grant agreement.


** Please note that prior approval is required for the use of contingencies. Costs can thus only be included in your financial report when the SAIP has received approval for the use

of the contingency for the specific costs by the MA.



218 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

16

Mo

nth

17

Mo

nth

18

T

ota

l

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0

2.3.2 Consumable supplies (refreshment, detergents,

0


219 / 234

etc)

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings

4.1.1


calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0




5.1 ……………..

0


220 / 234

5.2 ………………………

0

5.3 ………………

0



7.


Costs)**

0 0 0

0

8.

Administrative Costs (7% of Total Direct

Costs)***

0 0 0

0


Notes:

It is not allowed to insert budget lines that are not part of the contracted grant budget. Any grant budget adjustment is subject

to approval by the MA. See also section 2.5.4.3 of the Operational Manual and the grant agreement.






221 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

19

Mo

nth

20

Mo

nth

21

T

ota

l

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


0


222 / 234

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings


0


0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0




5.1 ……………..

0

5.2 ………………………

0

5.3 ………………

0


223 / 234




0 0 0

0


0 0 0

0


Notes:








224 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period*

Total Expenses

Mo

nth

22

Mo

nth

23

Mo

nth

24

T

ota

l

am

ou

nt

sp

en

t


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0




0


0


0

1.2.4 …………..

0



2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0


2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0


2.3 Office supplies


0


0


225 / 234

2.3.3 ……..

0


Total Goods 0 0 0 0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0


3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0


3.3 Audit Costs


0


0


0




4.1 4.1 Trainings


0


0

4.1.3 ………………..

0



4.2.1 Survey on …

0


0

4.2.3 ……

0




5.1 ……………..

0

5.2 ………………………

0

5.3 ………………

0


226 / 234




0 0 0

0


0 0 0

0


Notes:








227 / 234

Expenditure forecast for the Grant Fund

Name SAIP:

Project Title:

Contract Number:

Forecasted Period:

Total Expenses

Mo

nth

1

Mo

nth

2

Mo

nth

3

T

ota

l

cu

mu

lati

v

e f

or

ec

ast

No

tes


1.1 Staff Salaries

1.1.1 Program Staff


0


0

1.1.1.3 M&E Expert

0

1.1.2 Support Staff


0


0

1.1.2.3 Driver

0

Subtotal Staff Salaries

0 0 0

0



0


0


0

1.2.4 …………..

0

Subtotal Consultancy Service

0 0 0

0

Total Service - Human Resource

0 0 0

0

2. 2. Goods

2.1 2.1 Furniture


0


0

2.1.3 2.1.3 …..

0

Subtotal Furniture

0 0 0

0

2.2 Equipment


0

2.2.2 2.2.2 Printer

0

2.2.3 2.2.3…….

0

Subtotal Equipment

0 0 0

0

2.3 Office supplies


0


0


228 / 234

2.3.3 ……..

0

Subtotal Office supplies

0 0 0

0

Total Goods

0 0 0

0


3.1 Travel

3.1.1 Travel costs

0

3.1.2 …………..

0

3.1.3 …………..

0

3.1.4 …………

0

Subtotal Travel

0 0 0

0

3.2 Per Diem

3.2.1 Per diem

0

3.2.2

0

3.2.3

0

3.2.4

0

Subtotal Per Diem

0 0 0

0

3.3 Audit Costs


0


0


0

Subtotal Audit Costs

0 0 0

0

Total Monitoring and Evaluation

0 0 0

0


4.1 4.1 Trainings

4.1.1


calculations)

0

4.1.2


calculations)

0

4.1.3 ………………..

0

Subtotal Trainings

0 0 0

0


4.2.1 Survey on …

0


0

4.2.3 ……

0

Subtotal Trainings

0 0 0

0

Total 4. Program Deliveries / Activities

0 0 0

0


5.1 ……………..

0

5.2 ………………………

0


229 / 234

5.3 ………………

0

Total Direct Operational Costs

0 0 0

0

6. Total Direct Costs (1-5)

0 0 0

0


0 0 0

0


0 0 0

0

9. Total Project Costs (6+7+8) in ETB

0 0 0

0


230 / 234


Name SAIP:

Project Title:

Contract Number:

Reporting Period:

Fund required next Period

Amount

in ETB

Total Opening Balancing 1

Current Period Transfer in ETB 2

Total Available Advance Funds for the

Period 0

Less: Total Expenditure Current Period

(SoE) 3

Ending Balance 4

0

Forecasted Expenditures 5

0

Fund Required for the Next

Quarter 0

Contract Budget Balance

Amount

in ETB Contract Bank Balance

Amount

in ETB

Advance Payment #1

Opening Balance Bank

Advance Payment #2

Advance Payment #1

Advance Payment #3

Advance Payment #2

Advance Payment #4

Advance Payment #3

Advance Payment #5

Advance Payment #4

Advance Payment #6

Advance Payment #5

Advance Payment #7

Advance Payment #6

Advance Payment #8

Advance Payment #7

Total funds received from the MA

since the beginning of the project 0

Advance Payment #8

Total funds received from the MA

since the beginning of the project 0

Less: Total reported expenses

0

Less: Total paid expenses from bank

account 0

Balance

0

Ending bank Balance

0


231 / 234

Notes:

1 All the unused advance balance held by the SAIP should be reported under the Opening Balance. The

Opening Balance should correspond with the Ending Balance of the approved previous report (if any).

2 In case an advance payment was received in this reporting period, indicate the amount received in ETB on

the bank account. Attach a copy of the bank statement of this advance payment with your financial report.

3 The figure here must be equal to the total of the Total Current Period Expenditures as claimed in the

"Statement of Expenditure" sheet of this Financial Report.

4 This is the cash to be claimed available and remaining for the project out of the previous advances received.

The ending balance can be utilized for the next quarter.

5 This is the total of the forecasted expenditure that the SAIP plans to incur during the next quarter. The

figure should be equal to the Cumulative Forecast Amount given in the "Forecast" sheet.


232 / 234

Daily Expenses

Name SAIP:

Project Title:

Contract

Number:

No. Year Month Date Budget

Line Description (English) Ref. Amount ETB


233 / 234

Annex T:

Simplification of Financial Reporting Requirements of ESAP2

Date: 19 July 2013 Ref.: MAlESAP2/425/13 To: All partners Subject: Simplification of Financial Reporting Requirements of ESAP2.

It is to be recalled that the Management Agency set some financial reporting requirements in the grant agreement as well as in the Operational Manual. These requirements include but are not limited to submitting supporting documents, splitting the payroll costs into different expenses (i.e. net pay, income tax, and pension), reporting every expenditure separately, using the "MA Invoice Voucher" and the like.

However, we have realized that the requirements set for the financial reporting are very detailed and time consuming. Moreover, we have received feedback from the SAIPs that it is a serious challenge for them to maintain and keep some of the requirements. Cognizant this challenge of our Implementing Partners, the Management team of the MA has decided to simplify the requirement on the following areas:

1. Previously, the SAIPs were requested to report the payroll cost into different and

separate pieces i.e the net pay, pension, income tax and other deductions were

reported separately. Now, it is possible to report the gross salary (total earning as

one expense) and include the payroll which has the breakdown of these expenses.

However, it is mandatory for the SAIPs to keep all the necessary supporting

documents (including tax and pension payments) in good order for the external

audit as well as the internal audit to be conducted by the MA.

2. Like issue #1, the SAIPs were reporting purchase of goods and services net of

withholding tax (i.e. the net pay to the supplier and the deducted withholding

were reported separately). In the new system, the total cost of goods and services

shall be reported together in one line including the supporting documents. The

MA would like to stress that all the necessary taxes should paid in time and the

supporting documents must be kept properly.

3. SAIPs were expected to report each and every expenditure, irrespective of the

type and value, separately. Now, it is agreed that similar expenditures of the Petty

Cash, to be charged from the same budget line and in the same month can be

combined together and accompanied by one the MA Invoice Voucher". For

instance, if there are different taxi fares paid in the same month, then all these

receipts are attached together and reported as one expense in one "MA Invoice

Voucher".

4. Each and every transportation cost paid to the workshop/training participants

were supposed to be reported separately i.e. cost of individual participants is

expected to be reported in a separate line. Now, it is possible that the


234 / 234

transportation costs of a single workshop/training in are summarized in a lump

sum. Please note that it is not possible to report multiple workshops/trainings

together as one. Please be reminded that these changes will be effective starting

from 15 of July 2013 and shall be applied for the Quarter 3 financial reporting

and onwards. The MA envisages to organize orientation session to the Finance

officers of the SAIPs in August 20 13 for in-depth understanding on the

implementation of the proposed changes.

If you need any clarification on this, please do not hesitate to contact our grant and finance department. Wish you every success in the implementation of the ESAP2 project.

Your Sincerely, Rolf Hunink Team Leader ESAP2

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