ContentsI. INTRODUCTION...................................................................................................................................3

Purpose of this guidance.....................................................................................................................3

The importance of collaboration with civil society..............................................................................3

II. IDENTIFYING CSOs TO ADVANCE THE ACHIEVEMENT OF RESULTS FOR CHILDREN.............................4

Determining the nature of the relationship.........................................................................................4

Options for formalizing relationships with CSOs..................................................................................4

Table 1: Type of relationships with CSOs, programming instruments & their key features.............4

Table 2: Decision tree to use in determining whether partnership or procurement is to be pursued............................................................................................................................................6

Table 3: Summary of services and typical arrangement - partnership versus procurement............7

Partnership..................................................................................................................................................8

Stage 1: PURSUING PARTNERSHIPS:............................................................................................................9

Key Stages involved in partnership......................................................................................................9

Screening CSO core values...................................................................................................................9

Selection of civil society organizations for formalized partnership.....................................................9

Types of Partner Selection.................................................................................................................10

Table 4: Considerations and applicable procedures for selection approaches..............................11

Stage 2: DESIGNING AND FORMALIZING THE PARTNERSHIP.....................................................................11

Programme Cooperation Agreement................................................................................................12

Small Scale Funding Agreement (SSFA).............................................................................................13

Programme Document......................................................................................................................13

Step 1: Select relevant outputs to contribute to country programme or humanitarian response....13

Step 2: Identify capacities of each partner, the programme document activities (grouped by outputs) and discuss required resources...........................................................................................14

Assessing capacities of civil society organizations.............................................................................14

Step 3: Draft SSFA, programme document and prepare the partnership agreement........................15

Table 5: Considerations for selecting the appropriate CTM...........................................................15

Programme document workplan budget.......................................................................................17

Step 4: Review process..................................................................................................................20

Step 5: Finalize programme document and prepare the partnership agreement.........................21

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Step 6: Sign partnership agreement and programme document..................................................21

Table 6: Programming instruments that can be used for the rapid onset of humanitarian response........................................................................................................................................22

Stage 3: IMPLEMENTATION, MONITORING AND REPORTING...................................................................23

Step 1: Submit FACE form and/or supply request.................................................................................23

Step 2: Implement the activities............................................................................................................25

Step 3: Programme document monitoring and reporting.....................................................................25

Table 7: Frequency of Assurance Activities....................................................................................26

Step 4: Annual partnership review........................................................................................................32

Step 5: Programme document revisions................................................................................................33

Table 8: Types of revisions to the programme document work plan and budget and associated approval process............................................................................................................................33

Step 6: SSFA/PCA amendments.............................................................................................................34

Stage 4: CONCLUDING, SUSPENSION & TERMINATION.............................................................................34

Programme document activity closure..............................................................................................34

Suspension or termination of a programme document.....................................................................35

Termination of a SSFA/PCA (in-country partnership)........................................................................36

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I. INTRODUCTION

Purpose of this guidanceThe purpose of this guidance is to contribute to a better understanding of UNICEF rules and to enhance efficiency and effectiveness in the delivery and support of results for children.

This guidance explains the rules and procedures that apply to collaborative actions between UNICEF and civil society organizations with UNICEF resources, focusing specifically on formalized arrangements with partners that are governed by a programme cooperation agreement (PCA), small-scale funding agreement (SSFA).The information provided in this guidance is also available on the UNICEF website at the following address: [http://www.unicef.org/about/partnerships/index_81428.html] For matters directly related to the implementation of any specific programme cooperation agreement or small scale funding agreement, partners should contact the UNICEF programme officer in-charge directly.

The importance of collaboration with civil societyCivil Society Organizations (CSOs) are autonomous associations that are independent of the public and for-profit sectors and designed to advance collective interests and ideas. They include international and national non-governmental organizations (NGOs) and community-based organizations (CBOs), foundations, civic movements and advocacy groups, trade unions, faith-based organizations and professional voluntary associations, think tanks and academic and research institutions.

UNICEF’s Executive Board approved Strategic Framework for Partnerships and Collaborative Relationships recognizes that partnerships between UNICEF and civil society organizations (CSO) are critical to achieving results for children in both development and humanitarian contexts.

For more information on how UNICEF works with CSOs, please visit the Civil Society Partnerships section of the UNICEF website.

Partnerships are a central feature of UNICEF's efforts to realize, promote and protect the rights of children and women through Country Programmes of Cooperation and humanitarian action, the latter based on the Core Commitments for Children in Humanitarian Action. They extend the reach and effectiveness of UNICEF-assisted cooperation, especially to address inequities and focus efforts on the realization and protection of the rights of children and women – in particular those from disadvantaged or marginalized population groups.

To better understand UNICEF’s strategic priorities in each country where we operate, please visit the Country Programme Document Repository which provides all Executive Board approved country programme documents and outlines the country programme cycle.

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The Guiding Principles of Partnership with CSOs serve as the basis for all aspects of the present guidelines –identifying, developing, launching and managing partnerships with CSOs. UNICEF offices and partners should discuss these Guiding Principles prior to developing any formal or informal partnership.

Each stage of the UNICEF partnership process is outlined in detail on the Partnership Cycle section of the UNICEF webpage.

II. IDENTIFYING CSOs TO ADVANCE THE ACHIEVEMENT OF RESULTS FOR CHILDREN

Determining the nature of the relationshipUNICEF Country programme documents, notably the CPD, UNDAF, and CPAP/UNDAF Action Plan identify major partnerships and their role in achieving results for children and constitute the basis for developing subsequent relationships with CSOs during programme implementation.

During the situation analysis and country programme development process (including strategic prioritization exercises), and thereafter on an on-going basis, UNICEF Offices engage with a broad range of CSOs, through networks, communities, government and others to identify the strategic role of civil society in advancing the rights of children in the country. In this process, UNICEF Offices identify CSOs that are most likely to contribute to achieving programme results based on mandate, sectoral or thematic expertise, track record, geographic location, access to populations, local experience and capacity to facilitate consultations and two-way communication with affected populations, and other criteria considered important. In humanitarian contexts, interaction within the cluster system supports the identification of CSOs.

Options for formalizing relationships with CSOsProgramme activities can be implemented with CSOs either through procurement or partnership arrangements. The key features and instruments of each approach are outlined in Table 1, followed by a decision tree to choose between these approaches in Table 1.

Table 1: Type of relationships with CSOs, programming instruments & their key featuresType of

relationshipProgramming instruments

Key featuresOther applicable policies,

procedure, guidance

1.Procurement

1.1 Institutional/ Corporate Contract

a. Programme expected results and strategy defined by UNICEF

b. CSO provides services, which may include provision of goods, based on UNICEF defined Terms of Reference (TOR)

c. One time contract awarded based on a competitive bidding process (Request for Quotation for Services (RFQS) / Invitation to Bid for Services (ITBS) / Request for Proposal for Services (RFPS))

d. UNICEF retains overall responsibility for the design, management, and quality of goods and services

UNICEF contract management and administration (UNICEF Supply Manual)

1.2 Long-Term Arrangement

a. Programme expected results and strategy defined by UNICEF

UNICEF contract management and

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Type of relationship

Programming instruments

Key featuresOther applicable policies,

procedure, guidance

for Services (LTAS)

b. Long-term contract awarded based on a competitive bidding process (Request for Quotation for Services (RFQS) / Invitation to Bid for Services (ITBS) / Request for Proposal for Services (RFPS))

c. Institutional Contracts are issued for each specific requirement falling under the scope of the LTAS

d. CSO provides services based on UNICEF defined TOR as specified in each Institutional / Corporate Contract

e. UNICEF retains overall responsibility for the design, management and quality of goods and/or services

administration (UNICEF Supply Manual)

2.Partnership

2.1 Programme Corporation Agreement (PCA)

a. Participatory planning of the programme and implementation strategy

b. Partnership agreement with transfer of resources from UNICEF to the CSO based on jointly developed programme document (including results framework and budget)

c. Both parties responsible for resourcing the PCA project document and monitoring & reporting on results

UNICEF HACT Policy and HACT Procedure

2.2 Memorandum of Understanding (MOU)

a. Partnership agreement with no transfer of resources from UNICEF to the CSO based on jointly developed programme document

b. Both parties responsible for resourcing the MOU and monitoring & reporting on results

Guidance to be issued separately

2.3 Small Scale Funding Agreement (SSFA)

a. Participatory planning of the programme and implementation strategy

b. Partnership agreement with transfer of resources from UNICEF to a CSO up to $50,000 in a 12 month period

c. Both parties responsible for monitoring and reporting on results

d. Used mainly for capacity building of national CSOs and advocacy

In humanitarian response:e. Participatory planning of the programme and

implementation strategyf. Partnership agreement with transfer of resources from

UNICEF to a CSO up to $50,000 in a twelve months period and/or transfer of supplies of up to 3 months needs of affected population

g. Both parties responsible for monitoring and reporting on results

h. Used mainly as a tool immediate response while a PCA and programme document are being finalized

UNICEF HACT Policy and HACT Procedure

Procurement is used when the UNICEF Office has a pre-determined need and a defined Terms of Reference (specifying the need at the output level) that can be delivered from the market whether from a profit-orientated institution, individual contractor or CSO.

Partnership is used when there is a comparative advantage for UNICEF and the CSO to jointly deliver the desired result and the CSO brings resources (financial, intellectual or in-kind) to contribute to the

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delivery of results. There is not a set amount that CSOs have to contribute to enter into partnerships. The type of contribution that the CSO brings forms part of UNICEF Office best comparative advantage analysis.

Partnership is also used when the primary purpose of the relationship is to build capacity of CSO(s) to deliver results for children either by:

a. Establishing a SSFA directly with the CSO whose capacity UNICEF seeks to build; orb. Establishing a programme document based on existing PCA or new with an expert CSO that

directly works to build the capacity of other smaller CSOs. In such cases, the expert CSO remains accountable for: ensuring compliance with the PCA and PD; that results are achieved; and funds utilized as specified in the programme document.

When the partnership modality is used, the CSO is expected to contribute with its own expertise and staff/resources to the achievement of jointly defined results. Where significant components of the programme are to be sub-contracted to other individuals or entities, UNICEF Offices consider alternative implementation modalities, including use of procurement or partnership with envisaged sub-entities. Exception to this general rule is where the CSO was identified as a partner of choice to support capacity building of pre-identified smaller CSOs or a network of CSOs

Table 2: Decision tree to use in determining whether partnership or procurement is to be pursued

UNICEF offices may simultaneously enter into a procurement arrangement and a partnership arrangement with a CSO, as long as using these different streams is the best way to deliver results.

Table 3 lists the different services and corresponding programmatic stream – procurement or partnership. Exceptions to Table 3 are documented for review and approval by the UNICEF Representative.

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Table 3: Summary of services and typical arrangement - partnership versus procurement

Type of Service Partnership Procurement

Construction Services Yes

Design Services (including photography, branding, logo development, typography, etc.)

Yes

Development of Curriculum Yes Yes

Distribution of Kits - Substantive Support IP has trusted relationship/ access to community, provides medical advice, etc.

Yes Yes

Distribution of Kits - Transportation Services Yes

Event Operational/Logistical Support (Catering, Venue Management, Administrative Support, Translation e.g., trainings, workshops, conferences)

Yes

Evaluation Yes

Freight Forwarding Service Yes

IT Consulting Yes

Printing of any kind (ex. reports, brochure, pamphlet, business cards)

Yes

Research Yes

Substantive Support Research for event, Exchange of ideas, development of content for event

Yes Yes

Surveys of any kind Yes Yes

Trainers/ Training Yes (if specialized expertise related to UNICEF’s mandate is required and evaluation of activities to measure its impact is needed, e.g. peer education)

Yes (if required background is ‘generic’, such as for Excel; or if needed specialized expertise is not related to UNICEF mandate, e.g., IPSAS)

Translations Yes

TV and Radio Campaign Yes (where content needs to be developed

Yes (if campaign is designed and only

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Type of Service Partnership Procurement

and created, ex., advocacy campaign)

needs to be aired/distributed through one channel)

Workshop Facilitators Yes Yes

Working/ follow-up with communities and families on basic services

Yes

Procurement:UNICEF Offices that wish to enter into a relationship with a service provider (which may include a CSO) to provide a specific service to achieve a predetermined result, contract the service provider through a competitive bidding exercise to identify the organization that provides the best value for money following the requirements of the supply policies and procedures, these include:

a. Definition of the requirement through a Terms of Reference; b. Solicitation process with potential service providers via a Request for Quotation for Services

(RFQS) / Invitation to Bid for Services (ITBS) / Request for Proposal for Services (RFPS);c. Evaluation of proposals;d. Award of contract; ande. Contract management and administration, including final evaluation.

In case of procurement in Level 2 and 3 emergencies, UNICEF Offices refer to the different simplified standard operating procedure.

When a CSO is contracted to work with, or on behalf of, UNICEF through the procurement stream, the additional steps for partnership discussed below do not apply.

PartnershipUNICEF Offices that decide achieving a particular programme result requires the intellectual and physical resources of a CSO, select CSO partners that bring the best comparative advantage. UNICEF Offices work with CSO partners in all aspects of programme design and implementation, jointly determining the expected results and implementation strategies. Each partner invests tangible resources, such as cash or supplies, and/or intangible resources, such as knowledge, time, or technical expertise. UNICEF Offices and CSO partners share equal responsibilities for the failures and successes of the jointly defined programme. This guide further clarifies roles and responsibilities of UNICEF and the partnering organization, outlining accountabilities, and laying out the general requirements and procedures for a partnership. Additionally, it takes into consideration the Harmonized Approach to Cash Transfers (HACT) and 4 distinct steps as mentioned below.

Key Stages involved in partnershipStage 1: IDENTIFYING CSOStage 2: DESIGNING AND FORMALIZING THE PARTNERSHIP

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Stage 3: IMPLEMENTATION, MONITORING, REPORTING & AMENDMENTS Stage 4: CONCLUDING, SUSPENSION, TERMINATION

Stage 1: IDENTIFYING CSO Screening CSO core valuesBefore entering into partnership, CSOs are assessed for alignment with UNICEF’s core values.

UNICEF expects our partners to be committed to the core values of the UN, the Convention on the Rights of the Child (CRC), the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and the Convention on the Rights of Persons with Disabilities (CRPD).

As part of the screening of the core values and integrity of the potential CSO partner, the United Nations Security Council website must be consulted: http://www.un.org/sc/committees/consolidated_list.shtml . If the organization or its leaders appear on any of these lists, UNICEF will not consider a relationship with the organization.

The potential CSO partner shall ensure that all its employees and personnel comply with the provisions of ST/SGB/2003/13, “Special Measures for Protection from Sexual Exploitation and Sexual Abuse”1, that they do not expose any intended beneficiary, including children, to any form of discrimination, abuse or exploitation and that they comply with the provisions of other UNICEF policies relating to protection of children.

For international civil society organizations, core values assessed by UNICEF headquarters. UNICEF country offices handle assessments of national civil society organizations.

Selection of civil society organizations for formalized partnershipDuring country programme implementation, UNICEF Offices use criteria to identify the CSO with the best comparative advantage to achieve results for children. Offices may define office wide criteria; criteria may be left to the discretion of programme/sections; or a combination of both office and programme/section specific criteria.

Criteria used to identify the CSO partner with the best comparative advantage to best meet the needs of children will vary across country offices – and even within countries – and operational contexts. Criteria to identify the CSO partner offering the best comparative advantage may include, but are not limited to:

Expertise and experience in the sector/area: required knowledge, specific skills, specialists, and track record.

Local experience, presence and community relations: ongoing programme in the area of operation; knowledge of the local context; engaging children; trust from local communities, existing networks.

Innovative approach to achieve results and its expected effectiveness and/or efficiency in delivering outputs.

Realistic timelines and plans to achieve outputs that meet the needs of the UNICEF Office. Contribution of resources: Resources to supplement those of UNICEF in the form of cash, human

1 http://www.un.org/Docs/journal/asp/ws.asp?m=ST/SGB/2003/139

resources, supplies and/or equipment that are either presently available or potentially mobilized by the partner or as illustrated in given table 4.

Table 4: Examples CSO contribution of resources

1. Partner contribution may be related to costs for the implementation of programme activities such as: Contribution in cash to costs of activities – i.e. venue rental, DSA, transport, etc. Full/Partial Salary of technical Staff – i.e. experts in health, nutrition, communication, etc.

Contribution to communication activities in direct support of the programme – i.e. development of radio messages, materials, etc.

Contribution to costs of consultations, data collection and other research/ monitoring activities – i.e. baseline data, surveys, monitoring of beneficiaries, etc.

Vehicle exclusive for the programme (depends on project) Full/Partial Consultancy Fee Cost of Development of training material Use of developed specialize tools/database/base line data Contribution in supplies procurement directly related to project

Transport, storage, assembly/packaging, distribution of supplies/equipment related to the programme (Contribution of already procured supplies)

Use of already developed communication or training material

2. Partner contribution may be related to costs for the effective and efficient management of the programme management such as:

a. In-country management & support staff pro-rated to their contribution to the programme

Pro-rated portion of salary of Operations Personnel Staff supporting the programme – i.e. finance, logistics, admin, etc.

Pro-rated portion of salary of CSO Director

Pro-rated portion of Salary of cross-sectoral Staff supporting the programme – i.e. communication , planning, M&E, etc.

Vehicle rental or use of owned vehicle for projectb. Operational costs pro-rated to their contribution to the programme (office space,

equipment, office supplies, maintenance) Pro-rated portion of Office Rent or rent of additional office space Pro-rated portion of Office Utilities (water, electricity, telecommunication, etc.) Pro-rated portion of Warehouse Rent Pro-rated portion of ICT Equipment Pro-rated portion for maintenance of vehicles & equipment

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Other operational costs such as fuel, taxes, etc. Pro-rated portion of Office Supplies

c. Planning, monitoring, evaluation and communication, pro-rated to their contribution to the programme (venue, travels…)

Pro-rated portion of in country travel for programme and financial monitoring purposes (transport, DSA)

Pro-rated portion of costs of planning/communication – i.e. venue rental, travel, etc.

Access/security considerations: ability to operate in given security conditions or countries. Experience working with UNICEF: global and/or local partnerships, including knowledge of UNICEF

policies, practices and programmes. Management ability: ability to manage the size of the envisioned intervention (e.g. past experience

managing similar size budgets and staffing), results of past UNICEF (or other UN agency) micro assessments and assurance activities, if applicable.

Cost effectiveness: level of direct costs and administrative costs proposed as necessary by the CSO to implement the joint work plan

Other: other specific criteria that may be required to meet the needs of the country programme or humanitarian response.

Types of Partner SelectionUNICEF Offices use an open selection or a direct selection approach that reflects the needs of the programming context to identify CSO partners that provide comparative advantage. Considerations and applicable procedures for both approaches are outlined in Table 5.1- Direct selection is used when UNICEF Offices select the CSO partner based on specific

considerations that are appropriate to the programming environment. These may include: known expertise; time constraints/criticality of response; innovative approach; local presence; importance of strengthening national civil society engagement amongst others. This approach may be used in the following two scenarios:

a. UNICEF may request the CSO to submit a proposal for partnership; or b. The CSO may submit an innovative proposal to achieve results. Direct selection is undertaken using Annex F2 with the rationale for using direct selection documented as part of the PRC Submission (Reference Document 5 Annex G) to fill by UNICEF staff.2- Open selection is used when UNICEF Offices issue a call for expression of interest to solicit

interest in partnering with CSOs. The call may be: i) generic when it is used to identify prospective partners that can contribute to the achievement of results broadly defined in the country programme / humanitarian response plan; or ii) specific, when the call is used to identify CSOs to partner around specific/ targeted results/ interventions. A call for expression or interest may be: public, when advertised in newspapers/media; or closed, when the call is sent to a restricted number of known CSOs to identify which among these can provide the best comparative advantage. Open selection may also be appropriate to solicit interest in

2 When an SSFA is established using a direct selection approach, no additional selection documentation is required beyond the SSFA template.

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establishing contingency PCAs. The call for expression of interest and subsequent analysis is documented as part of the PRC Submission (Reference Document 5 Annex G).

Table 5: Considerations and applicable procedures for selection approachesType of selection Key features Considerations & risks Applicable procedures

Direct selection (solicited or unsolicited)

UNICEF Office decides to partner with a CSO for a specific proposal. The proposal may be:a) Submitted by the CSO to UNICEF; orb) Solicited by UNICEF to a particular CSO.

a. Responsive to particular programming environment, country context or timing of the intervention

b. May reduce ability to choose between alternative partners/ approaches

c. Limits transparency of selection and cost-effectiveness analysis

Document the rationale for using the direct selection approach in the PRC submission form, explaining specific reasons why this selection approach was chosen

Open selection (generic or specific; public or closed)

UNICEF Office issues a call for expression of interest that may be:a) Generic, when offices wish to identify prospective CSO partners around broad programme areas/results;b) Specific: when offices wish to identify CSO to achieve a specific result. A specific call for expression of interest may be public or closed depending if it is advertised or sent to selected number of CSOs.

a. Transparent selectionb. Supports identification of new

partners and/or new approachesc. Supports more informed cost

effectiveness analysisd. May require more time to allow

partners’ submission and staff time for the selection process

Document the results of the open selection approach using the selection analysis as an annex to the PRC submission

Stage 2: DESIGNING AND FORMALIZING THE PARTNERSHIP

UNICEF teams must work with CSO partners in a participatory manner to define the expected results and programme strategies of an intended partnership. Each partner invests tangible resources (such as cash or supplies), and/or intangible resources (such as knowledge, time, or technical expertise). The UNICEF office and its CSO partner share equal responsibility for the failures and achievements of the joint programme.

Legal agreements Partnerships are formalized when there is a transfer of UNICEF resources using either:Programme cooperation agreement (PCA) Small scale funding agreement (SSFA)

UNICEF Offices work with CSOs in a participative and consultative manner to define the expected results and programme strategies of an intended partnership. Partnerships where there is a transfer of UNICEF resources are formalized through the use of the following agreements:

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Programme Cooperation AgreementThe main purpose of the Programme Cooperation Agreement (PCA) is to establish stable and long-lasting cooperation between UNICEF and a CSO partner that has met all of the criteria of the selection process. PCA (legal framework) with a CSO that are then operationalized by programme document(s) (Annex B or Annex C). At the time of signature, the PCA is accompanied by at least one programme document. Programme Cooperation Agreement (PCA) where it is anticipated that total transfer of UNICEF resources will be more than $50,000 to the CSO

i. One PCA per office with a CSO with one or multiple programme documents3. Where separate programme documents are used for different sections, UNICEF Offices put in place measures for coordination across sections to ensure any partnership management issues (including UNICEF HACT procedure requirements and budgetary considerations) are shared and action taken.

ii. When programme documents cover multiple years:a. For Regular Resources, funds can be committed the country programme cycle

(subject to the availability of resources and continuation of country programme and/or humanitarian response).

b. For Other Resources, funds can be committed for the duration of the donor grant, even if extending beyond the current country programme cycle (subject to availability of resources and the continuation of the country programme and/or humanitarian response).

c. UNICEF Offices indicate in the programme document how the partner will be informed, in writing, of continuation of the arrangement for subsequent years.

iii. When programme documents cover multiple countries, for example in the case of regional or sub-regional programme activities, one UNICEF office takes the lead in signing the PCA and establishing measures for coordination across countries to ensure any partnership management issues (including UNICEF HACT procedure requirements and budgetary considerations) are shared and coordinated action taken.

iv. When UNICEF Offices enter into partnership with a CSO that has an existing partnership agreement with UNICEF at global/regional level, a country specific PCA and programme document(s) is required at local level.

v. The section on Amendments to PCAs and Revisions to Programme Documents provides greater detail for partners on notifying UNICEF of changes.

vi. The PCA also defines the rights and obligations of UNICEF and its CSO partner, as well as the general terms and conditions of the agreement. A programme cooperation agreement must be signed prior to entering into a programme document. A programme document specifies the programme design, results, workplan and budget.

vii. UNICEF offices or partner are not allowed to alter any of the standard clauses of the agreement without obtaining permission from UNICEF Headquarters.

viii. A UNICEF office and a CSO have only one PCA per country programme cycle, but there can be multiple programme documents.

Throughout the duration of the partnership, the CSO partner has the obligation to maintain compliance with the eligibility and suitability criteria, as explained in the Core Values section of this guidance. In the 3 It may be valuable to have a single, multi-sectoral programme document if this encourages integration across sectors, and reduce transaction costs for the partner.

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event of any changes regarding its legal, financial, technical or organizational situation, CSO partners must inform UNICEF immediately. Examples of such changes include: Legal changes, such as a change of name or mandate; Financial changes, including the weakening of financial capacity; Organizational changes, such as the modification of its non-profit status; Administrative changes, including addresses, contacts, and bank account information. These changes must be done through programme cooperation agreement amendment template.

Small Scale Funding Agreement (SSFA) SSFA uses where the total transfer of UNICEF resources to the CSO will not exceed $50,000 in a twelve month period4.

i. In country programme, UNICEF Offices use SSFA as a tool to build capacity of national CSOs, especially community based organizations. Once $50,000 has been transferred to a CSO in twelve months’ time, subsequent SSFA’s cannot be entered into with the CSO. If further resources are to be transferred then a PCA is put in place.

ii. In humanitarian response, UNICEF Offices use SSFA as a tool for the quick transfer of up to $50,000 of cash and/or up to three months of programme supplies required to meet UNICEF’s Core Commitment to Children. Additional cash is transferred through the establishment of a PCA.

Programme Document The programme document is the sole mechanism for budgeting and releasing funds. No funds are to be committed or disbursed to a CSO partner before both a PCA and a programme document have been signed by the authorized official of CSO and the UNICEF Representative or delegated staff member.

The UNICEF programme document is in Annex C. UNICEF also has a Simplified Humanitarian Programme Format for use in the first 3 months of humanitarian response (Annex B), for long term or after 3 months humanitarian response all partnership must be developed on Annex C.

UNICEF offices undertake a consultative process with the CSO partner to develop the programme document; the CSO partner takes the lead in this process which involved following steps.

Step 1: Select relevant outputs to contribute to country programme or humanitarian response a. UNICEF programme and the CSO discuss the expected results of the partnership and overall strategy

for the programme, making reference to the contribution of the specific programme document to the results planned in the country programme and/or humanitarian response plan;

b. UNICEF programme share with the CSO the partnership development process, the required templates/ forms to be prepared5 and any other document relevant to the proposed partnership, including partnership principles, standard legal agreement, budgetary considerations (Reference Document 3), etc.

4 Funding source considerations are the same for SSFAs as they are for PCA programme documents (see para 53a iv).5 These include the template for SSFA Template, programme document (Annex C or Annex B); Partner’s Declaration (Annex E)

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Step 2: Identify capacities of each partner, the programme document activities (grouped by outputs) and discuss required resources

Assessing capacities of civil society organizationsUNICEF programme and the CSO discuss how their respective capacities will complement each other in the implementation of the programme document.

The need to assess the CSO’s financial, procurement and managerial capacity as per the requirements of the UNICEF HACT Procedure is discussed with the CSO. Additionally, if the partner is rated high or significant risk, the need to incorporate capacity development activities is discussed and incorporated into the programme document, if required.

The financial management capacity of partners is assessed using a standard approach in all UNICEF offices, based on the United Nations Development Group (UNDG) HACT Framework. UNICEF offices are required to undertake a micro assessment of all partners receiving more than USD 100,000 per year from UNICEF. These micro assessments (Reference Document 2) are undertaken by third parties (audit firms) and the terms of reference can be found on the UNDG HACT Framework site. When the partnership is below $100,000, UNICEF office may decide to undertake a simplified financial checklist (Reference Document 1) completed by UNICEF staff.

When micro assessments are required but urgency prevents their completion prior to agreements being signed, UNICEF offices assume these partners are high risk in terms of their financial management capacity until the assessment is finalized. This results in UNICEF offices having to undertake additional assurance activities.

If a partnership with a CSO requires the procurement of services or supplies for a value exceeding US $2,500, an assessment of the CSO’s capacity to undertake procurement is conducted either as part of the selection process of CSOs or as part of the HACT micro assessment6. The assessment is proportionate to the procurement risks involved and the type of supplies and services being purchased by the partner

Micro assessment results are valid for a period of five years, unless there have been major changes in the management and internal control environment of the partner. UNICEF programme officers and the CSO partner discuss how their respective capacities will

complement each other in the implementation of the programme document. When planning for activities that will require the CSO partner to procure items specified and

financed by UNICEF, country offices should not transfer cash to CSOs that have not been positively assessed on their ability to undertake procurement activities.

6 Or another procurement assessments accepted by Supply Division, such as those undertaken by EU and ECHO for purposes of selection as a Humanitarian Procurement Centre partner http://ec.europa.eu/echo/files/partners/humanitarian_aid/HPC-register_en.pdf or selected as a Framework Partnership Agreement partner as per: http://ec.europa.eu/echo/files/partners/humanitarian_aid/fpa_partners.pdf

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When planning for activities that will require the CSO to transport and warehouse supplies, UNICEF should ensure that the partner has adequate capacity to safeguard these supplies. If significant deficiencies are detected, remedial plans and mitigation activities must be incorporated into the programme document and carried out before any large scale transfer may take place.

Step 3: Draft SSFA, programme document and prepare the partnership agreement CSO and UNICEF programme finalize the SSFA agreement partnership agreement The programme document Annex B/ Annex C prepare jointly with CSO which reflects key elements

related to implementation, as discussed between UNICEF and the CSO partner. The programme document references any technical standards and principles specific to the

implementation of the activities. Where such technical specifications are not publically available, they are attached to the programme document (not re-written in the programme document).

The programme documents are drafted in accordance with the financial and budgetary considerations outlined in this guidance in Reference Document 3.

UNICEF programme officers and CSO partners discuss the Cash Transfer Modality (CTM) that will be used (direct cash transfer, reimbursement or direct payment to vendors). Three cash transfer modalities are available under these guidelines:

A. Direct Cash Transfers: where funds are provided to Government Partners for immediate use (within a period of three months) to implement agreed upon programme activities, as stipulated in the FACE form.

B. Direct Payments: where payments are made directly by UNICEF to vendors and other third parties, providing goods or services for agreed upon programme activities upon request, on behalf of the partner and following the completion of the activities.

C. Reimbursements: where funds are provided to partners for certified expenditures incurred, for agreed upon programme activities, as stipulated in the FACE form

Table 6: Considerations for selecting the appropriate CTMImplementing partner

overall risk ratingConsiderations for CTM

Non assessed, Low risk and Moderate risk

Based on programme needs as decided by the office Assurance activities performed in line with requirements outlined in para.

21(f)

Significant and high risk

Based on programme needs as decided by the office Offices should consider the possibility of using the reimbursement modality or a

blend of reimbursement and direct cash transfer Direct payment modality should be considered for large purchase of goods or

services, where the implementing partner was found to have adequate procurement processes

Stronger assurance activities in line with requirements outlined in para. 21(f) Offices should ensure opportunities are pursued where appropriate to

strengthen financial management capacities of the implementing partner Offices consider the possibility of a mandatory spot-check before FACE

liquidation as they deem appropriate

Exceptions to the standard CTM approach defined in the office may be required in specific circumstances

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to ensure effective and timely programme implementation and delivery of results for children.

In each UNICEF office:

a) The Head of Office, in consultation with the CMT, takes a decision on the appropriate standard approach to selecting CTM in relation to risk rating of implementing partners in the specific country context and approves exceptions based on documentation as required;

b) The Deputy Representative/Director and Chief of Operations ensure the Head of Office is well- informed of the programming environment in the country and relevant information to make the CTM decision;

c) The programme manager documents reasons warranting an exception to the standard CTM approach for review by the Head of Office; and

d) The HACT focal point provides technical and administrative support throughout the CTM decision- making process. The HACT focal point documents the standard CTM approach for the office.

Taking lead times for procurement and delivery into account, UNICEF programme officers and CSO partners discuss supply requirements and plan activities. UNICEF offices commit to delivery times to the CSO partner according to the needs of the programme.

UNICEF officers and CSO partners discuss any visibility requirements of UNICEF, the CSO or donors funding the programme. For any UNICEF-funded activities the CSO partner is implementing, it is required to provide visibility to UNICEF and (where required) its donors. However, UNICEF offices do not impose visibility requirements that would place the CSO and its staff in danger or negatively impact the delivery of results.

Include assurance activities7 in efficient manner to full fill the UNICEF procedures on HACT and same time not to burden partner with too assurance activities under different programme documents.

Programme document workplan budgetThe workplan budget represents the estimated cost of implementing activities and achieving results defined in the programme document. The workplan and budget provide the basis for programme and financial performance management and monitoring achievement of jointly planned results.

A common understanding between the UNICEF programme officer and the CSO partner is reached on the resource requirements to implement activities and achieve results. Similarly, these parties must also agree upon that he partner’s contribution in mentioned in workplan and budget.

The workplan budget is divided into two categories: Programme Costs and Headquarters Support Costs.

Programme CostsAll costs to carry out activities are included in the programme document workplan budget. ‘Programme Costs’ are costs that can be unequivocally attributed to a specific activity implemented by the partner.

7 Assurance activities details provided in Stage3: Implementation and Monitoring17

At the request of UNICEF, or when audited, the partner must provide supporting documentation for Programme Costs.

Programme Costs include: Costs for the actual time devoted by personnel within the country to the management of the

programme document implementation; Costs for the time of personnel whose specific inputs are required by the programme workplan; Goods and services purchased for the implementation of activities covered in the programme

workplan; Premise costs that are directly related to achieving the results of the programme document; Other costs directly attributable to the implementation of programme document activities. Partners are not permitted to procure the following supplies with UNICEF funds (irrespective of

value of procurement or location of supplier):(a) Human vaccines;(b) Antitoxins/globulins;(c) Anti-venom;(d) Tuberculin/sensitins;(e) Auto-disable syringes;(f) Re-use prevention featured (RUP) syringes;(g) Safety boxes;(h) Pharmaceuticals;(i) Therapeutic food;(j) Supplementary food;(k) Salt iodization supplies;(l) HIV-AIDS diagnostic and monitoring equipment;(m) Rapid Diagnostic Test Kits, including for HIV/AIDS, Hepatitis, Malaria, etc.(n) Drill rigs and associated high value equipment;(o) Ground water survey measuring equipment, e.g. resistivity meters;(p) Cold chain equipment, including solar powered refrigeration systems, cold and

freezer rooms, cold boxes, vaccine carriers, ice packs, refrigerators and freezers;(q) Long Lasting Insecticidal Nets (LLINs) and insecticides.

Examples of acceptable programme costs include: Supplies that directly assist beneficiaries (e.g. therapeutic and supplementary feeding materials,

non-food items such as soap, hygiene kits, etc.) or beneficiary institutions (e.g., chalkboards, school desks, tables and chairs, IT equipment, office supplies, etc.);

Freight and transport of supplies that directly assist beneficiaries, and costs related to their warehousing and management;

Packaging materials (e.g. assembly of school materials, hygiene and medical kits, etc.); Surveys, consultations and other information collection activities directly related to the achievement

of the planned result(s);

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Technical assistance (i.e. salaries of technical staff – such as experts in health, nutrition, WASH, HIV/AIDS, protection, policy development, etc.) to directly support beneficiaries or beneficiary institutions;

Communication activities that directly support the programme objectives (e.g. cost of radio spots, posters, brochures, community mobilization events such as rallies, contests, etc.);

Monitoring of groups (rights-holders) receiving assistance (e.g. measuring mid-upper arm circumference (MUAC) of malnourished children).

Salaries and related costs of in-country representation, planning, coordination, finance, administration and logistics personnel – all prorated according to the per cent of effort/time spent on the UNICEF-assisted PCA or SSFA;

Operational (fuel, local taxes, etc.) and maintenance costs (repair and replacement, such as for tires, shock absorbers, broken windscreens, etc.) associated with CSO-owned vehicles or those loaned by UNICEF, prorated according to their use in relation to activities under the UNICEF-assisted PCA or SSFA;

Office equipment (e.g., computers, printers, photo-copiers, faxes, telephones, etc.) used in-country as direct support of the programme, all prorated ;

In-country travel for programme and financial monitoring purposes (e.g. transportation costs, such as the price of travel tickets, road and bridge tolls, accommodations and food), prorated according to their relation to activities under the UNICEF-assisted PCA or SSFA;

Other in-country expenses incurred directly in support of the programme, including additional rental of office space, office maintenance supplies, utilities, telecommunications and office supplies, all prorated according to their relation to the UNICEF-assisted PCA or SSFA.

Where the CSO partner requires support for programme management and support, the workplan budget has the standard output and activities:

Programme. Output X

Effective and efficient programme management

Act X.1 Standard activity: In-country management & support staff8 pro-rated to their contribution to the programme (representation, planning, coordination, logistics, admin, finance)

Act X.2 Standard activity: Operational costs pro-rated to their contribution to the programme (office space, equipment, office supplies, maintenance)

Act X.3 Standard activity: Planning, monitoring, evaluation and communication, pro-rated to their contribution to the programme (venue, travels, etc.)

Budgeting for such costs is further simplified in the Simplified Humanitarian Programme Format.

Costs for capacity building to enhance financial management

Support may be provided to action plans jointly agreed by national CSO partners and UNICEF to address the partner’s capacity development needs, as identified by a micro assessment or prior assurance

8 Costs of technical assistance/staff directly related to the achievement of planned results are budgeted as part of programme output budgeting, see the programme document template for further guidance

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activities. Financial management capacity building constitutes a separate output in the programme workplan and is considered a Programme Cost.

Headquarters Support CostsInternational CSOsHeadquarters Support Costs can be reimbursed to international CSO partners upon request as mentioned in programme document. An international CSO partner is defined as one whose headquarters is outside of the country of implementation. International CSO partners often incur additional costs at their headquarters for overseeing and supporting programme implementation. By accepting Headquarters Support Costs, the CSO partner commits to using the resources to achieve results for children – including those outlined in the programme document.

National CSOs On a case-by-case basis, Headquarters Support Costs can be paid to national CSOs. Headquarters Support Costs is not usually paid to national CSOs.

CalculationHeadquarters Support Costs are included in the programme document9 as a standard, flat 7 per cent addition to the cash transfer component (i.e. excluding supplies, equipment and other forms of in-kind support) of the agreed budget of Programme Costs. This excludes the value of cash/voucher assistance for beneficiaries and bulk procurement, where bulk procurement is defined as goods and services with a value of more than USD 100,000 -- such as essential supplies, construction materials, or sub-contracting for commercial services. Partner costs associated with office rental, personnel cost, travel, and the purchase of office supplies are not considered bulk procurement and are not excludable from the Programme Costs for the purposes of calculating Headquarters Support Costs. 7 per cent (HQ) cost is not applicable under SSFA partnership irrespective of national or international NGOs.

Workplan budget development In order to accurately estimate the resources needed for each activity, the partner prepares detailed cost estimates of inputs for each activity, ensuring all costs are associated with the activities of the workplan. The compiled activity level costs are then incorporated into the draft programme document for discussion with the UNICEF programme officer, who may request additional information to better understand the estimates sited.

Overall, UNICEF’s expectation is that workplan budget activities and their associated input requirements are implemented in a manner that is aligned with economy, efficiency and effectiveness.

The programme document workplan and budget includes any important ‘non-financial contributions’ from both UNICEF and partners. ‘Non-financial contributions’ are inputs other than cash or programme supplies which are directly used towards the achievement of the partnership’s planned results. Community mobilization or local knowledge inputs by community based organizations (CBOs) are important examples of non-financial contributions, and should be incorporated within the programme

9 Headquarters Support Costs are not included in the budgets of SSFAs.20

document and/or workplan and budget. An estimated value of non-financial contributions is not required.

When developing the workplan budget, the section on Eligible Expenditures provides further detail on costs that can be included.

Step 4: Review processProgramme Document The UNICEF office Partnership Review Committee (PRC) reviews the partnership recommendation

and programme document to make a recommendation to the Representative. The Partnership Review Committee may ask the UNICEF programme officer for further detail or revisions.

o The objective of the Partnership Review Committee is to make informed, objective and transparent recommendations to the Representative as to whether the proposed partnership is in the best interests of UNICEF and achieving results for children.

o Each UNICEF office establishes the budget threshold of a PCA requiring a review by the Committee prior to approval by the Representative. This budget threshold is established according to the overall size of the country programme budget.

o The Representative, in consultation with the UNICEF Country Management Team (CMT), establishes and appoints members and alternates of the committee. The committee is comprised of UNICEF staff only. The Representative cannot be a member of the committee.

o In most UNICEF offices, the Deputy Representative is the chairperson of the committee, with additional members including: Chief of Operations (or most senior official responsible for Operations); Chief, Planning, Monitoring & Evaluation (or most senior official responsible for PME); and the HACT Focal Point. The composition may vary in smaller offices.

o If the programme officer/programme section chief making the submission to the committee happens to be a member of the committee, they cannot vote on the submission.

Small Scale Funding AgreementThe SSFA is jointly developed between UNICEF and the CSO and generally does not require review process but country office may decide to include SSFA in PRC review process.

Step 5: Finalize programme document and prepare the partnership agreementUNICEF programme revises the programme document, if needed, in consultation with the CSO. The revised programme document is re-submitted to the PRC, if required.Step 6: Sign partnership agreement and programme document The authorized officer of the CSO10 and the Representative (or delegate) sign the programme

cooperation agreement and programme document. The PCA and programme document is signed in duplicate, one copy kept by the UNICEF Office and the other by the CSO.

After obtaining the signature11 of the authorized officer of the CSO (as identified in the PCA) on the PCA/programme document, the UNICEF Representative12 signs signifying UNICEF’s approval of the PCA/programme document.

10 PCA or programme documents must be signed by authorized officer as mentioned in PCA Article I, Paragraph 10. Any changes in mentioned signatories should be done through PCA amendment template. 11 Document with scanned signatures are acceptable. 12 A delegate of the Representative can sign a programme document in accordance with the Table of Authority.

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UNICEF and the CSO are the only two signatories to the PCA and programme document. The only exception is when the activities are part of a joint programme with other UN agencies, in which case the UN agencies may also be signatories to the programme document.

When programme documents or SSFA are sent to CSO partners for signature, UNICEF offices request that the CSO partner also submit the first FACE form for cash transfer (Annex J) or Request for Supply (Annex K) in order to expedite the transfer of funds.

The SSFA and the programme document are the sole mechanisms for budgeting and releasing UNICEF resources to a CSO. Funds and supplies are not committed or disbursed to a CSO before the CSO’s authorized official (as identified in the PCA for a programme document) and the UNICEF Representative13 have signed the SSFA or both a PCA and a programme document.

Legal agreements with CSOs can be signed in any of the languages where official translations have been provided by the Legal Office (Arabic, English, French, Russian and Spanish). It is at the discretion of the Representative to decide which of these official translations will be used by the UNICEF Office. Translations into other languages are for information purposes only.

Special Considerations in Emergency Contexts In a country where a Level 2 or Level 3 emergency is declared, UNICEF Offices consult with UNICEF’s

Corporate Emergency Activation Procedure and applicable Simplified Standard Operating Procedures for any further simplifications provided to enter into partnerships with CSOs.

Contingency PCAs and/or programme document As part of preparedness commitments and activities, UNICEF Offices, especially those prone to

emergencies, are encouraged to put in place contingency PCAs with fully assessed humanitarian CSOs that can be quickly activated when an emergency occurs14. The PCA and programme document are signed in advance following review by the PRC and are activated by the Representative writing an activation letter to the CSO.

The programme document of the contingency PCA is completed using outputs and activities required for humanitarian response in the specific programme sector based on figures of affected population as per the emergency preparedness and response plan15. Once the contingency PCA is activated, targets and budget is adjusted according to the actual situation along the lines of the agreed programme document; the revised budget is submitted for signature along with the FACE form for cash transfer authorization in the earliest possible timeframe.

Options to ensure timely mobilization

13Or the delegated officer, as appropriate, and in line with the office Table of Authority or measure put in place for approvals in level 3 humanitarian response.14 The establishment of contingency PCAs with humanitarian CSOs give consideration to the CSOs demonstrated mechanisms for accountability to affected populations.15 The programme document of the contingency PCA may also set ranges of population and/or performance targets (and corresponding budget levels). The Representative activates each target as the situation unfolds and as funding becomes available.

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UNICEF Offices have the following options (highlighted in Table 1) to ensure timely mobilization at the onset of humanitarian response:a. Activate contingency PCAs and/or programme documents.b. Review existing PCAs to determine whether an existing programme document can be revised16. c. Review existing PCAs to determine whether a programme document for humanitarian response

can be added. The Simplified Humanitarian Programme Document (Annex B) is used to rapidly start-up humanitarian response (first three months of humanitarian response). UNICEF Offices put in place a programme document (Annex C) after the first three months of humanitarian response.

d. Develop a new PCA with a new implementing partner. UNICEF Offices can use the Simplified Humanitarian Programme Document (Annex B). UNICEF Offices put in place a programme document (Annex C) after the first three months of humanitarian response.

e. Establish a SSFA with a new CSO to allow for a quick transfer of cash and/or supplies while a PCA/programme document is under development. Programme Officers take into account the CSOs ability to properly safeguard and effectively distribute supplies to the affected population.

f. In addition to proposals submitted by CSOs, proactively seek partnerships that provide comparative advantage. Make use of available media mechanisms or network channels to issue a call for expression of interest to announce areas that UNICEF requires assistance.

Table 7: Programming instruments that can be used for the rapid onset of humanitarian responseType of partnership Instrument Key features Approval process

Ongoing partnership

Contingency PCA and programme document

PCA and programme document already in place as part of preparedness activities that can be activated quickly

Representative

New partnership

SSFA Transfer of cash up to $50,000 and/or transfer of programme supplies up to 3 months of distribution requirements for affected population.

Representative

New partnership

PCA + Simplified Humanitarian Programme Document (Annex B)

Annex B provides simplified budgeting and workplan to be used for 3 months of cash and supplies required for humanitarian response

Representative

Ongoing partnership

Simplified Humanitarian Programme Document (Annex B)

Annex B can be added to an existing PCA with a partner

Representative

Ongoing partnership

Revision of existing programme document (Annex C)

Transfer of cash &/or supplies Representative

Stage 3: IMPLEMENTATION, MONITORING AND REPORTINGStage 3 having different steps related to funds, supplies, assurance activities, partnership reviews and revisions in PCA, SSFA or two types of Programme documents to cover the implementation, monitoring and reporting part.

16 For example, an additional programme document specific to humanitarian response may be put in place with an existing WASH partner for activities related to the WASH sector or other sectors if the partner has the capacity.

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Step 1: Submit FACE form and/or supply request Once the SSFA/programme document has been signed by both parties, it is implemented. Partners are encouraged to send the first request for cash and supplies when returning the signed programme document to UNICEF.

The Supply Request Form in Annex K is used to request supplies.

The Funding Authorization and Certification of Expenditures (FACE) form in Annex J, along with the itemized cost estimate, is used to request cash transfers, report on expenditures and certify expenditures. An excel version of the form can be obtained from the UNICEF office.

Using the FACE form The FACE form supports several important functions, including: Request for funding authorization: The partner uses the section ‘Requests/Authorizations’ to enter

the amount of funds to be disbursed for use in the new reporting period. Against this request, UNICEF can accept, reject or modify the amount approved;

Reporting of expenditures: Under the ‘Reporting’ section, the partner reports to UNICEF on expenditures incurred in the reporting period. UNICEF can accept, reject or request an amendment to the reported expenditures;

Certification of expenditures: The partner’s designated official uses the ‘Certification’ section to certify accuracy of the data and information provided.

Reference Document 3 contains detailed instructions on how to complete the FACE form.

a. The CSO submits a FACE (Funding Authorization and Certificate of Expenditure) form that is signed by the authorized official as indicated in the PCA to

i. Request cash in the case of direct cash transfer (DCT); ii. Request authorization to enter into commitments in the case of direct payment; or

iii. Request authorization to incur expenditure in the case of reimbursement.

b. For all cash transfer modalities, the FACE form contains requests at the activity level corresponding to the programme document and is accompanied by an Itemized Cost Estimate (ICE)17 listing the planned utilization of cash at the input level. The use and level of detail required for an ICE is as per Reference Document 3.

c. A new FACE form should be used whenever there is change in cash transfer modality. As much as possible FACE should be aligned with workplan budget and funds requests or reporting should be done on quarterly basis.

d. The reporting timeline is based on the date of the payment or issuance of the direct cash transfer or the ‘DCT issue date.

e. If report on the full utilisation has not been received within six months of the DCT issue date, no further DCTs will be made to the partner

f. FACE used for reporting for funds must accompany progress report of Annex B/C or as agreed for SSFA.

17 Sometimes also referred to as itemized budget breakdown24

Itemized Cost EstimateIn order to accurately estimate the resources needed for each activity, the CSO partner prepares an itemized cost estimate (ICE) of inputs for each activity, ensuring that all costs are associated with the activities of the workplan. The ICE quantifies and provides an estimated cost for each input required in the implementation of the activity. The ICE can also be referred to as a detailed activity budget.

A specific template for ICE is not provided but CSO may refer or use (Reference Document 6 ICE template). The CSO partner can use its financial systems to provide the cost estimate. The ICE should specify the period of implementation and the targets for the activity during this period. At a minimum, the ICE should contain the following information: Description of each input required for the implementation of the activity; Quantity; Unit price or cost where applicable; Total input estimated cost; and Total amount for the activity, which should be equal to the requested amount on the FACE form.

Cost estimates developed for the purpose of costing activities in the work plan: Do not include costs covered by other sources of funding (other funding agencies, donors,

government subsidies, etc.); Do not include costs that are covered by other UNICEF programme documents; Can be supported by clearly identifiable and reasonable quantities and unit prices that can be

provided, if requested; Are consistent with proposed performance targets defined for the workplan’s duration; Reflect a realistic rate of utilization of funds, taking into consideration the partner’s absorption

capacity; Are arithmetically accurate; Are based on relevant national/CSO policies and follow best practices in local markets; Have transparent and verifiable definitions and sources of data (qualitative and financial),

assumptions, and methods for calculating costs; and Are developed using a cash basis on the implementation of activities (that is an estimate of actual

expenses per period and does not include accruals).

In developing cost estimates, it is important to note that Headquarters Support Costs are not included; given that this amount is based on actual expenditures, they are not given in advance. Headquarters Support Costs are requested as reimbursement based on actual expenditures using the FACE form to report on the previous quarter’s cash utilization. CSO partners are not required to report Headquarters Support Costs at an itemized level.

Step 2: Implement the activities The CSO partner implements the activities stipulated in the SSFA/programme document. UNICEF

programme officers provide thematic technical advice and support to the CSO partner throughout implementation.

The CSO partner and UNICEF implement any capacity development activities and resulting action plans.

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Step 3: Programme document monitoring and reporting The CSO monitors workplan implementation, in collaboration with UNICEF programme. UNICEF Offices undertake assurance activities as per UNICEF HACT Procedure. Where supplies are

provided to partners, programme monitoring includes a review of the safeguarding and proper utilization of those supplies.

UNICEF Offices implement any additional risk mitigation measures agreed to as part of the programme document review and approval process.

UNICEF Offices ensure that monitoring and assurance activities meet any specific requirements of donor agreements that are funding the programme document.

CSO reports on progress as per the requirements in the SSFA/programme document. o Progress reporting using the standard template in the programme document (Annex C Part 2) or as

agreed in the SSFA takes place when a FACE form for reporting purposes is submitted. UNICEF Offices and CSO agree on the language of progress reporting. It is at the discretion of the UNICEF Office to determine whether progress reporting will be in one of the UNICEF working languages or local language.

o In humanitarian situations, particularly in a Level 2 or Level 3 emergency, partners are asked to submit monthly progress reports informing the status of high frequency indicators 18 using the standard template in the simplified humanitarian programme document (Annex B Part 2).

o Additional progress reporting requirements, frequency and scope, are determined as appropriate to the context taking into account any donor reporting requirements. UNICEF Offices aim to reduce the reporting burden on partners. Therefore, UNICEF Offices do not request additional progress reporting from CSOs unless it is required for a specific purpose such as year-end, humanitarian performance monitoring or donor specific requirements.

o UNICEF Offices ensure progress reporting schedule takes into account mid-year review and year-end/new year planning.

Assurance ActivitiesUNICEF Offices are required to undertake assurance activities on all programmes implemented with partners. All records related to partnership agreement must be kept by partner for five years to any possible audit and inquiry by the donor, government, evaluation team or UNICEF.

Assurance activities are comprised of:1. Spot checks

Conducted at the partner’s office by either UNICEF staff or contracted audit firm; Terms of reference is available on the UNDG HACT Framework website.

2. Programmatic visits a. Evidence based monitoring to verify results reported by partners have been achieved;b. Terms of reference dependent on the nature of programme activities

3. Scheduled audit a. Conducted at the partner’s office by an audit firm;b. Terms of reference available on the UNDG HACT Framework website.

4. Special audit

18 Offices can refer to the CCC E-Resource (available to only UNICEF staff) for further information on indicators, monitoring and reporting in humanitarian response.

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a. Conducted by a third party with terms of reference developed in response to the issue that triggered the special audit.

The schedule for spot checks, programmatic visits and scheduled audits is agreed upon with the partner and documented in the programme document. UNICEF and partners review the findings of spot checks and audits and jointly develop action plans. Frequency and timing of assurance activities planned based on standard assurance framework as mentioned in Table 9:Table 9: Frequency of Assurance Activities

Cash transfer amount per year Risk rating

Programmatic visits Spot checks Audits

Less than 20,000 Non-assessed 1 or more per year Not required One scheduled audit is required for all implementing partners that have received more than $500,000 during

the programme cycle8.Special audit is required when specific issues/ concerns arise duringthe programme cycle.

Less than $100,000 Non-assessed 1 or more per year 1 or more per year*

Less than $350,000Low or Medium 1 or more per year 1 or more per year*

Significant or High 2 or more per year 2 or more per year*

More than $350,000

Low or Medium 2 or more per year 1 or more per year*

Significant or High Quarterly 3 or more per year*

* Not required in the year of audit

Eligible expenditures Expenditures incurred by partners are classified as “eligible” or “ineligible”. The initial classification is usually done by UNICEF programme officer certifying the FACE and Itemized Cost Estimate forms prior to the payment of cash transfers, and/or by those responsible for assurance activities, with the final classification of the expenditure confirmed by the UNICEF office. When expenditures are confirmed as ineligible by UNICEF, it means that UNICEF resources may not be used to cover such expenses (even if the expense is already incurred).

Eligible expenditures are those that have been validated by UNICEF and/or assurance providers as being: Actual expenditures incurred during the implementation period, as stipulated in the programme

document; Expenditures incurred solely for programme document purposes and consistent with the terms and

conditions of the PCA/SSFA; Based on credible documentary evidence in line with the partner’s policies and procedures, and/or

pre-defined UNICEF specified requirements; In line with the programme document budget, approved FACE form and Itemized Cost Estimate;

and/or In compliance with competitive and transparent procurement/tendering processes and the

appropriate application of the relevant financial and procurement procedures.

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Ineligible expenditures are those expenses incurred which have been found not to be compliant with the signed programme document and PCA/SSFA and/or the appropriate financial and procurement procedures of the partner. The non-exhaustive list of expenditures that could potentially be classified as ineligible by UNICEF may include: Expenditures for goods and services not included in the approved workplan budget, FACE form and

Itemized Cost Estimate; Expenditures incurred outside of the implementation period; Expenditures not duly authorized by the appropriate authority, as stipulated in the partner’s policies

and procedures; Prices in excess of the prevailing market prices for goods and services without proper

rationale/justification; Expenditures on services for which a report is expected but not received; Fraudulent expenditures (as verified by UNICEF and assurance providers), such as expenditures with

falsified/fake receipts, contracts with fictitious suppliers, contracts involving collusion or nepotism between implementer and suppliers, other procurement irregularities;

Recoverable taxes not recovered by the partner within a reasonable period of time (six to nine months after incurring the actual expenditure);

Any expenses related to the personal costs of partner directors or employees; Expenses incurred where the title on purchases is not in the name of the partner; Expenses that are not-compliant with the partner’s rules and guidelines; Any interest expenses on financial debt and debt related charges; Loans, grants and credits to individuals or entities (unless provided for as an activity in the

programme document); Any expense that has been funded by more than one UNICEF programme document; Any expense that has been funded by another donor or organization; Expenses incurred before the agreement date, including costs for proposal and fund raising; Office repair and maintenance (unless expressly provided for in the programme document budget

for purposes of security); Expenses claimed that represent accruals and not actual costs, such as depreciation expense and

post-employment employee benefit accruals; Employee and management bonuses; Any expenses that are unreasonable compared to the national prevalent rates and prices; Any expenses that are illegal or prohibited by local laws and regulations, including bribery; and Shared cost allocations not supported by a fair allocation method.

When expenditures are initially classified as ineligible by UNICEF and/or assurance providers, UNICEF requests additional justification to be provided by the partner. The partner has 30 days from the date of the official notification by UNICEF to provide relevant justification, with appropriate supporting documents for review by UNICEF.

Upon receipt and review of the additional justification and supporting documentation, UNICEF may fully or partially re-classify the expenditure as eligible, or may confirm ineligibility. If the expenditure is confirmed as ineligible, a refund request will be communicated via official letter for the amount considered as ineligible in the programme document budget currency.

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The amount should be fully refunded by the partner within 60 days of notification of the reimbursement request. UNICEF may freeze all disbursement releases to the partner until the actual refund takes place.

In the event that the partner is not able to refund the ineligible expenditure within the stipulated 60 days, the partner may submit a formal request to enter into a repayment plan with UNICEF. The repayment plan may be for a maximum period of 6 to 12 months, depending on the nature of ineligibility and subject to the approval of the UNICEF Comptroller. Disbursement of additional UNICEF resources for programme implementation will be maintained if the provision of the payment plan is adhered to by the partner.

Partner personnel costsPartner personnel costs include any payment for employment services rendered, including: salaries, wages and other direct costs of employment.

UNICEF does not set salary caps on what partners can pay their staff. However, UNICEF does set maximum thresholds on the UNICEF contribution towards those costs.

UNICEF can provide a contribution towards the costs for both international and national personnel of the partner. However, every effort should be made to employ national expertise, thereby supporting national capacity building and ensuring cost-effectiveness.

Partner personnel costs for staff are to be budgeted at the most cost-efficient level to achieve the programme expected results. UNICEF will provide a contribution towards costs for partner personnel up to the rates applicable within the United Nations system in the country. Specifically: UNICEF’s contribution to the costs of national partner personnel cannot exceed the rates payable

for comparable functions in UN established salary scales for local staff (or local consultancy rates in the case of consultancy costs).

UNICEF’s contribution to the costs for international partner personnel cannot exceed the rates payable for comparable functions for UN established salary scales for international professional (IP) staff (or international consultancy rates in the case of consultancy costs).

UNICEF’s contribution to the costs of any partner personnel cannot exceed any rates agreed at a UN Country Team interagency level (ask the UNICEF country office if such rates exist in the country).

UNICEF’s contribution to partner personnel costs are to be based on the local context to be consistent with local market practice and enable sufficient and appropriate staff to be recruited for the implementation and management of programme document activities.

Partners are not to create remuneration levels – especially for UNICEF funded programmes that are higher than the remuneration levels normally paid by the partner.

Partners are solely responsible for complying with applicable labour and other laws (including without limitation, occupational health and safety, minimum wages, separation payments, social security and health insurance, and income taxes).

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Where partner personnel are working on multiple programmes/projects funded by other agencies and/or internal CSO resources, only the actual time spent on the UNICEF programme document implementation are considered eligible costs. Partners are expected to put in place a similar apportionment approach as described in the allocation of shared costs section of this guidance.

Travel related costsTravel related costs include payment for the direct cost of expenses incurred by the partner to implement activities of the programme document. Typically such costs would be for travel related to training, monitoring and evaluation, supervision visits, and advocacy/meetings.

Travel related costs are to be based on existing policies of the partner. New policies on travel-related costs created especially for UNICEF-funded travel that differ from the partner’s normal policies are unacceptable.

A Daily Subsistence Allowance (DSA) or per diem is the common method of recompensing staff and participants for each night spent at the location of the event, rather than paying for the exact expenses incurred.

DSA rates should be benchmarked against those paid by similar organizations in the local context. UNICEF will pay the lesser of: the applicable DSA rates established by the International Civil Service Commission, or the applicable DSA rates established by the partner’s internal policies. It is not acceptable to claim a DSA if the DSA or subsistence costs are also covered by another source of funding; this includes events that are fully hosted.

UNICEF expects partners to administer the payment of DSA, taking into account good practices such as: Where meals or accommodation are provided, the amount of the DSA is reduced accordingly. DSAs are only paid for the days that a person attended the workshop or meeting and one night

either before or after the event if the participant is expected to arrive either a day before or depart the next day.

Records are to be available to validate the participant’s attendance at the workshop or meeting. It is not acceptable to partially attend an event and claim a DSA for its entirety.

Allocation of shared costsShared costs can be defined as expenses that can be allocated to two or more funding sources (such as funding from other UN agencies or similar organizations) or different UNICEF programme documents on the basis of shared benefits and administrative efficiency. Typical examples of shared costs are staff, office space and utilities.

Cost sharing is allowable under the following circumstances: The apportionment method is clearly stipulated in the partner’s budget assumptions; It is verifiable according to the partner’s records, with evidence of a fair proportion of the costs that

can be attributed to the UNICEF programme document budget based on transactions value, space, funding level etc.;

It is necessary and reasonable for the proper and efficient accomplishment of grant and programme planned results objectives; and

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It reflects actual expenses during the programme document implementation period.

Other Matters Fraud and other ethical considerationsUNICEF expects CSO partners to maintain the highest standard of conduct in connection with their work with UNICEF and beneficiaries. Partners are expected to have policies no less stringent than the UNICEF’s Policy Prohibiting and Combatting Fraud and Corruption.

UNICEF expects that CSO partners ensure that all its personnel comply with the provisions of Special Measures for Protection from Sexual Exploitation and Sexual Abuse. UNICEF also expects that CSO partners put in place measures so that its personnel do not expose any intended beneficiary, including children, to any form of discrimination, abuse or exploitation.

Conflict of interestCSO partners must avoid any conflict of interest. A conflict of interest, or perceived conflict of interest, is any situation wherein it is reasonable to question whether the actions of the CSO or CSO personnel are influenced by private interests (such as interests related to personal relationships or financial gains).

In case of conflict of interest, or if a particular situation may lead to a conflict of interest, a CSO partner has to: Inform the UNICEF office in writing immediately. Take all necessary steps to correct the situation and inform UNICEF about the measures taken.

CSO partners also have to inform UNICEF offices if they have former UNICEF employees on their staff, management or board of directors.

Confidentiality of informationCSO partners are expected to safeguard all information related to beneficiaries and the UNICEF programme cooperation agreement in accordance with the UNICEF Disclosure of Information Policy.

Bank accountsUNICEF does not require a separate bank account for funds received from UNICEF. However, a partner may opt to establish a separate bank account for UNICEF funds to ease their tracking of revenue and expenditure.

A UNICEF office may request a partner to establish a separate bank account if it has a high or significant risk rating from a micro assessment or negative results of assurance activities. In such cases, the cost of maintaining a separate account for UNICEF funds is considered an eligible expenditure under the standard programme output “Effective and efficient programme management.”

UNICEF transfers cash to the partner bank account in the country of implementation. At the request of the partner, and at the discretion of the UNICEF office taking into account local laws, UNICEF can transfer cash to a bank account outside of the country of implementation (such as a CSO’s headquarters location). However, the costs associated with the transfer (foreign exchange, wire fess etc...) must be

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paid by the CSO. In situations where cash is transferred outside of the country due to failure of the country’s banking system, UNICEF will cover the costs of the bank transfer.

Currency of budgeting and currency of paymentThe programme document budget is to be in the currency of implementation. This is usually the currency of the country of implementation. Cash transfers to the partner will be made in the currency stated in the programme document budget.

Programme document budgets can be in multiple currencies if implementation costs are planned to be incurred in multiple currencies. UNICEF offices determine whether multiple currency budgets are required for activity implementation. However, UNICEF offices must respect local laws regarding in-country payments in foreign currencies. If multiple currencies (i.e. US$ and local currency) are used in the programme workplan and budget, the amounts for each currency are reflected separately, and the totals for each currency are provided separately.

Headquarters Support Costs must be transferred in the same currency as the Programme Costs (the currency of implementation in the programme document budget). As mentioned above, UNICEF offices can transfer cash outside of the country, but any costs associated with foreign exchange gain/loss or wire fees is to be borne by the partner.

Sub-contracting and taxes on purchase of goods and services for activity implementationAll sub-contracting of activities described in the programme document require the prior approval of UNICEF. Advance approval is not required if partners sub-contract out general services that fall under the standard output “Effective and efficient programme management.” Such general services include activities such as general office IT support, bookkeeping, cleaning services, etc. However, partners are encouraged to contact the UNICEF Programme Officer in cases where they are uncertain as to whether advance approval is required.

For the purpose of this guidance, “taxes” can be understood as a financial charge (e.g., value-added tax or “VAT”, custom duties, etc.) or any other levy upon an entity and mandatorily imposed by law.

The partner uses its best effort to facilitate and secure relevant tax exemptions from the government of the host country concerned. In cases where the partner has applied for tax exemption but has not received a reply from the relevant authorities, the letter from the partner or its legal counsel requesting the exemption is considered as proof that tax exemption was requested.

Where the partner has not obtained relevant tax exemption, UNICEF offices may modify the proposed implementation arrangement in order to avoid the loss of resources. These modifications may include, for example, shifting responsibility for procurement to UNICEF or alternative organizations which hold tax exemption.

When tax exemption at source has been granted to the partner, the programme document workplan budget is prepared net of taxes on applicable unit costs. Tax exemption at source refers to the arrangement where the partner does not have to pay taxes at the point of invoice.

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When tax exemption is obtained on a reimbursement basis (i.e. the partner has to pay the taxes first and then claim reimbursement), the programme document workplan budget is prepared tax-in on applicable unit costs. The partner must maintain a tracking mechanism for taxes paid, claimed and reimbursed

respectively by the tax authorities in the relevant Host Country. UNICEF Offices and the partner decides on how the recovered taxes will be used:

o Reimbursed directly to UNICEF upon receipt from the authorities;o Used for subsequent year budgets in the programme document;o Kept by the CSO partners and used only for implementing activities to achieve results for

children.

Step 4: Annual partnership review Progress on activities and outputs is assessed as part of mid and annual year reviews to encourage

mutual learning. The annual partnership review meeting focuses on progress made towards achieving the targeted

output(s) by using the established target and indicators. The partnership review includes discussion on the performance of both UNICEF and the CSO as partners. In the case of a multi-year programme document, the CSO and UNICEF revise activities and budgets for the coming year(s), reflecting lessons learned. Where multiple programme documents are ongoing under a PCA, UNICEF Offices decide if an overall or separate partnership review is required

The annual partnership review is documented using the template Annex I.

Step 5: Programme document revisions Programme document revisions can be proposed either by the CSO or UNICEF. Both parties agree to

all revisions that are required to be documented in the programme document by the signatures of the Representative and the authorized officer of the CSO.

Any revisions in programme document is subject to review and approval that reflect the size of the country programme budget, criticality of interventions and operational considerations. However, the minimum UNICEF Office requirements for revisions are as per Table 8 (illustrative examples are provided in Reference Document 3).

Table 8: Types of revisions to the programme document work plan and budget and associated approval process

Type of revision Considerations

Changes requiring approval by the section using FACE

Changes to the budget of activities (≤20%) with no change in the total programme budget

CSO can request a change to the budget of activities up to 20% at the time of FACE form request, documenting reasons for this change.

Approval is done by the UNICEF authorizing officer with the signature on the FACE form. No additional documentation required.

Changes to expenditure reported on FACE form compared to authorized

CSO can report expenditures exceeding up to 20% of the authorized amount per activity without prior approval of UNICEF. Variance reported

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Type of revision Considerations

amount with no change in total programme budget (≤20%)

to UNICEF at time of FACE form reporting with an explanatory note. Approval is done by the UNICEF authorizing officer with the signature on

the FACE form. No additional documentation is required.Changes requiring approval by the section with note for the record

Changes to the budget of activities (>20%) with no change in the total programme budget

CSO can request a change to the budget of activities of more than 20% at the time of FACE form request, documenting reasons for this change.

If approved authorizing officer documents this change with a note for the record.

Changes to expenditure reported on FACE form compared to authorized amount with no change in total programme budget (>20%)

Expenditures exceeding 20% of the authorized amount are not normally allowed. In exceptional circumstances, those are documented by the CSO and may be approved, partially approved or rejected by UNICEF. If accepted, UNICEF prepares a note on record documenting the approval and any impact on the programme implementation.

Changes requiring approval by Representative with exchange of letters

No cost-extension within country programme cycle

Extensions are within relevant grant expiry dates (or other grant conditionality) otherwise, alternate source of funding required.

Changes requiring signature of revised programme document by both parties

Changes to the budget of activities resulting in a change in the total programme budget (≤20%), with no changes to the programme results

The rationale for changes to the budget of activities resulting in a change up to 20% of the total programme budget must be documented in writing from the CSO. If approved by the authorizing officer in UNICEF, a new programme document is signed by both partners.

Budget decreases that do not impact on planned results do not require review of the PRC. However, programme officers inform Head of Section so that funding can be re-programmed

UNICEF Offices consider funding availability and grant conditionality.Corrections in the programme document due to typos or administrative error

CSO/UNICEF can request a change to the programme document, including the budget, due to overlooks.

Approval is done by the UNICEF authorizing officer with the signature on the revised programme document. No additional documentation required.

Changes requiring review by PRC before approval/signature by Representative and CSO partner

Changes to the budget of activities resulting in a change in the total programme budget (>20%), with no changes to the programme results

Budget increases of more than 20%19 must be submitted for review by PRC for recommendation to Rep.

UNICEF Offices consider funding availability and grant conditionality.

19 This requirement relates increases to programme document budgets that are over the PRC review threshold specified in the office. Calculation of the 20% refers to the most recent PRC approved programme document budget.

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Type of revision Considerations

Changes to planned results, population or geographical coverage of the programme

Changes to the planned programme results, population or geographical coverage must be mutually agreed in writing in advance between UNICEF and the CSO. The revised programme document must be submitted for review by PRC for recommendation to Rep.

Step 6: SSFA/PCA amendments UNICEF Offices revise the SSFA with the CSO partner if any change is required in the document. UNICEF Offices use the PCA amendment model template to document any amendments to the PCA

(ex. authorized officials, duration, banking).

Stage 4: CONCLUDING, SUSPENSION & TERMINATION Programme document activity closureThe CSO partner has primary responsibility for initiating the operational closure of activities that have been completed.

Upon completion of all programme document activities, a final meeting is held between UNICEF and the CSO partner to document achievements and lessons learned. Wherever appropriate, UNICEF offices and the CSO partner discuss:

A. How to sustain achieved results beyond the length of the programme document.B. How any remaining cash, supplies and existing equipment purchased under the programme

document will continue to contribute to its intended purpose

UNICEF Offices may decide to undertake a performance audit depending on the nature and duration of the partnership and/or programme document and any specific grant conditionality. The purpose of a performance audit is to assess various aspects of the partnership in relation to achievement of results for children i.e. extent to which jointly defined results were achieved; relevance/ appropriateness of the programme strategy; sustainability of interventions; effectiveness of the partnership; and document lessons for institutional learning

Suspension or termination of a programme document The suspension or termination of a programme document can take place without

suspending/terminating all programme documents and the PCA with a CSO. Following appropriate consultations with the parties concerned, UNICEF Offices may decide to

suspend transfer of resources and assistance to the CSO if conditions set out in the programme document have not been complied with, or if implementation is not proceeding satisfactorily.

UNICEF Offices provide written notice to the CSO indicating the conditions under which UNICEF is prepared to resume implementation of the programme document. The suspension continues until the conditions are accepted by the CSO and the UNICEF Office gives written notice to the CSO it is prepared to resume implementation.

In the event UNICEF suspends a programme document, no requests for further cash transfers are processed nor should the CSO incur any further liabilities with regard to the suspended programme

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document. Already incurred liabilities to the date of written notice are honoured by making outstanding direct payments, reimbursements, or acceptance of reported expenditure of cash transfers following regular completion of assurance requirements.

If action to remedy the situation is not taken by the CSO within a reasonable time, usually between 14 days and one month after receipt of such notice, UNICEF Offices may, by written notice, terminate the programme document effective on the date specified in the notice. In such cases, the CSO will be asked to return unspent funds from advances, submit final reports and return any supplies or UNICEF assets in its possession.

Due to exceptional programming circumstances, the CSO may consider that implementation as defined in the programme document may not be feasible with significant negative impact on the achievement of results for children. In such circumstances, the UNICEF Office should provide assistance and support. This may result in provision of technical support and/or adjustments to the programme document or a decision from the CSO to terminate the programme document. The process and resulting decisions are documented in writing by the CSO and UNICEF, with timely action from the UNICEF Office to ensure appropriate follow-up activities.

If a programme document is terminated, UNICEF programme prepares a Note to Record that is provided to the PRC Secretary. The Note to Record details: the reasons for termination; steps undertaken by the UNICEF Office related to the termination process (including all communication with the CSO); response (s) from the CSO; and includes all supporting document.

UNICEF Offices reimburse the CSO, or deduct from the return of unspent funds, for costs incurred to implement the workplan, up to the effective date of termination, including: a. Reasonable costs incurred in winding up its implementation of the UNICEF programme

document; and b. A prorated share Headquarters Support Costs allowable, as per the programme document,

corresponding to the amount spent up to the date of termination in relation to the total UNICEF allocation.

Termination of a SSFA/PCA (in-country partnership)20

UNICEF may decide to terminate an SSFA/PCA with a CSO by giving 30 calendar days written notice to the CSO if: a. It concludes the CSO has breached its obligations under the SSFA/PCA or any programme

document and has not remedied that breach after having been given not less than 14 calendar days written notice to do so with effect from a date specified in such notice; and/or

b. It concludes that the CSO cannot meet its obligations under the SSFA/PCA.

UNICEF Offices may also suspend or terminate a SSFA/PCA in any of the following situations: a. If implementation of any programme document/SSFA has not commenced within a reasonable

time;

20 Termination of partnership at a global level can only be actioned by UNICEF Headquarters. Termination of a SSFA/PCA with a CSO in one country does not necessarily impact on partnerships between UNICEF and the CSO in other countries.

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b. If it decides the CSO or any of its employees or personnel has engaged in any corrupt, fraudulent, money laundering collusive, or coercive practices in connection with SSFA/PCA or implementation of any programme document;

c. If it decides the CSO or any of its employees or personnel has engaged in any violations of the rights of children;

d. If at any time the CSO becomes listed on any UN Sanctions list; e. Should UNICEF’s funding be curtailed or terminated; f. The UNICEF country programme or humanitarian response is discontinued; org. Should the CSO be adjudged bankrupt, or be liquidated or become insolvent, or should the CSO

make an assignment for the benefit of its creditors, or should a Receiver be appointed on account of the insolvency of the CSO, in which case the implementing partner shall immediately inform UNICEF of the occurrence of any of the above events.

If a SSFA/PCA is terminated, UNICEF programme prepares a Note to Record that is provided to the PRC Secretary. The Note to Record details: the reasons for termination; steps undertaken by the UNICEF Office related to the termination process (including all communication with the CSO); response (s) from the CSO; and includes all supporting document.

UNICEF Offices reimburse the CSO, or deduct from the return of unspent funds, for costs incurred to implement the workplan, up to the effective date of termination, including: a. Reasonable costs incurred in winding up its implementation of the UNICEF programme

document; and A prorated share Headquarters Support Costs allowable, as per the programme document, corresponding to the amount spent up to the date of termination in relation to the total UNICEF allocation.

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