english version dec 24 final 1

Implementation Manual For

United Nations ExCom AgencyAssisted Programmes

In Ethiopia

December 2007Addis Ababa, Ethiopia

Table of Contents

Page

1. Background....................................................................................................................................... 1

2. Implementation arrangement............................................................................................................. 2

2.1. Roles and responsibilities of coordinating bodies and

Implementing partners ....................................................................................................2

2.1.1. The Government Coordinating Body (MoFED) ...............................................2

2.1.2. Federal implementing partners ........................................................................4

2.1.3. Regional implementing partners ......................................................................5

2.1.4. The United Nations Agencies (the ExCOM) ....................................................8

2.2. Program Management Staffs at Federal level ...................................................................9

2.3. Program Management Staffs at Regional Sector Implementing Partners ..........................10

2.4. Program Management Staffs at BoFED ...........................................................................10

2.5. Program Management Staffs at Sect oral Woreda Responsible Parties .............................11

3. Annual Work Plan Formulation and Approval ..................................................................................11

4. Implementation ................................................................................................................................ 13

4.1. Implementation Start-up ..................................................................................................13

4.2. Program Budgets and Revisions of AWP .........................................................................14

4.3. Budget Revision .............................................................................................................. 15

4.4. Program/ Project Personnel ..............................................................................................16

4.4.1. Project/Program Support Staff (Category One) ................................................16

4.4.2. Technical Assistance (Category Two) .............................................................17

4.5. Training .......................................................................................................................... 23

4.5.1. Fellowships .....................................................................................................24

4.5.2. Study Tour/ Group Training ............................................................................25

4.5.3. In-Service Training .........................................................................................27

4.6. Supplies and Equipment ..................................................................................................28

4.6.1. Introduction ....................................................................................................28

4.6.2. Procurement Principles and Process ................................................................28

4.6.3. Verification, Placement of Damage and Insurance

Coverage and Claims .....................................................................................30

4.6.4. Insurance Coverage and Claims – Procurement ...............................................31

4.6.5. Installation and Commissioning of Equipment ................................................32

4.6.6. Operation and Maintenance of Equipment .......................................................32

4.6.7. Inventory and Control of Supplies and Equipment ...........................................33

4.7. Sub – Contract ................................................................................................................. 34

4.7.1. Sub – Contract with Firms ...............................................................................34

5. Financial Management, Accounting and Reporting ..........................................................................35

5.1. Bank Account and Signatories .........................................................................................355.2. Fund Request ................................................................................................................... 355.3. Fund release procedure ....................................................................................................365.4. Payment of Programme Funds .........................................................................................375.5. Financial Accounting and Records ...................................................................................405.6. Financial Reporting .........................................................................................................425.7. Financial Accountability ..................................................................................................435.8. Closing of Bank Account .................................................................................................44

6. Audit................................................................................................................................................. 44

6.1. Audit Plan and Objectives ...............................................................................................446.2 Assignment of Auditors------------------------------------------------------------------------------------45 6.3. The Audit Process ........................................................................................................... 466.3. Follow – up ..................................................................................................................... 46

7. Monitoring and Evaluation and Reporting ........................................................................................46

7.1. Purposes of Monitoring and Evaluation ...........................................................................467.2. Principles of Monitoring and Evaluation ..........................................................................477.3. Monitoring ...................................................................................................................... 487.4. Evaluation ....................................................................................................................... 52

TABLE

SALARIES FOR SUPPORT STAFF OF THE PROGRAMME MANAGEMENT SECRETARIAT. .21

CHART

AWP Preparation, Fund Release, Payment and Reporting ........56

ANNEXES

I. Standard Letter of Agreement between the Implementing Partner and a Government Organization Serving as Responsible Party..............................................................57II. Sample Service Contract with Programme/Project Support Staff.........................60III. Annual Work Plan..................................................................................................63IV. Funding Authorization and Certificate of Expenditure (FACE).............................64V. Sample Contract with Consultants......................................................................65VI. Cash Book (Bank Receipt & Disbursement Ledger).............................................66VII. Payment Voucher.................................................................................................67VIII. Subsidiary Ledger...............................................................................................68IX. Receipts & Disbursement Registration Book (control ledger).............................69X. Bank Reconciliation..............................................................................................70XI. Quarterly Programme/Project Progress Report....................................................71XII. Supplies and Equipment Request Form..............................................................72XIII. Annual Report of Non-Expendable Equipment..................................................73XIV. Non-Expendable Property Ledger......................................................................76XV. Model Terms of Reference (ToR).........................................................................77

List of Acronyms

APR Annual Program/ Project Report AWP Annual Work PlanBoFED Bureau of Finance and Economic DevelopmentCPAP Country Program Action PlanCPD Country Program DocumentDAG Donor Assistant Group DSA Daily Subsistence AllowanceFIP Federal Implementing PartnersFACE Funding Authorization and Certificate of ExpenditureGOE Government of EthiopiaHAP Harmonized Action PlanHACT Harmonized Cash TransferIP Implementing PartnerIMEP Integrated Monitoring and Evaluation Plan MoFED Ministry of Finance and Economic DevelopmentM & E Monitoring and EvaluationNEX National ExecutionNPC National Program CoordinatorPMO Program Management OfficeRIP Regional Implementing PartnerRP Responsible PartnerRPC Regional Program CoordinatorRPMO Regional Program Management OfficeRSB Regional Sector BureauRBM Result Based Management TA Technical AssistanceTOR Terms of Reference TRAC UNDP Regular ResourceUNCT United Nations Country TeamUNDAF United Nations Development Assistance Framework UNDP United Nations Development Program UN EXCOM The 4 UN Agencies (UNDP, UNICEF, UNFPA & WFP) UNFPA United Nations Population Fund UNICEF United Nations Children’s Fund WoFED Woreda Finance and Economic Development (Office)WFP World Food ProgramWSO Woreda Sector Office

1. BACKGROUND

In preparing the current UNDAF, the government and the United Nations Country Team (UNCT) in Ethiopia put considerable emphasis on ensuring that the process is in line with the reform agenda of the UN Secretary General and that it implements the harmonized programming approach. At the background of this process there is considerable progress in harmonization in Ethiopia including the preparation of the Government's Harmonization Action Plan (HAP) in January 2005 and “Draft Joint Declaration on Harmonization, Alignment and Aid Effectiveness” prepared by the Government and DAG. The UNCT also stressed on the need to take the harmonization process beyond project and programme formulation to a new level, by adopting a common implementation framework, to the extent possible, in order to reduce transaction costs and simplify the multiple procedures that currently exist among UN Agencies.

The Government and UNCT have reviewed agency implementation modalities, including the National Execution (NEX) approach. The UN-supported programmes and projects will operate within the aligned procedures with Government systems and implementation procedures in areas such as implementation arrangements, monitoring and evaluation systems, financial rules and regulations, auditing and procurement arrangements. Thus the UNCT has agreed under overall NEX principles and norms to implement UN-assisted programmes and projects in the coming programme cycle.

In line with the above, it has now been agreed to have a common UN EXCOM Program Implementation Manual (PIM) which sets out one common set of procedures and rules that governs the implementation of all UN assisted programs in Ethiopia, focussing on program formulation, implementation arrangement, annual work plan preparation, procurement, financial management and reporting, Technical assistance, monitoring and evaluation, and auditing.

During the preparation of the PIM the rules, regulations and guidelines of each UN ExCom have been thoroughly reviewed, peculiarities of each identified and to the extent possible the differences are accommodated in this guideline.

This Program Implementation Manual is, therefore, prepared to serve as a guideline for the implementation of all programs of the UN ExComs assisted programs in Ethiopia.

Areas and situations where specific policies and procedures of each agency to be applied is presented in this Manual.

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2. IMPLEMENTATION ARRANGEMENT

2.1. Roles and responsibilities of Coordinating Body and Implementing Partners (IP)

MOFED is the Government coordinating body and assumed ultimate responsibility on behalf of the Government for overall management and coordination of UN programming and is ultimately accountable to ExComs for all UN programming resources under Government management.

Implementing Partners (IPs) refers to the Federal Implementing Partners (FIP) and Regional Implementing Partners (RIP). The FIP represented by the sectoral institutions, which have been selected as partners for the implementation of UN assisted programs at federal level, while BOFED and sectoral bureaus represent regional implementing partners each having distinct role. BOFED is responsible for the financial management and preparation of substantive and financial reports whereas sector bureaus are responsible for the preparation of their AWP and delivery of the results indicated in their AWP.

Implementing partners provide services and carry out activities such as the procurement and delivery of programme/ project inputs and their conversion into programme/project output and outcomes.

The Implementing partners (IPs) at Federal level are accountable to MoFED and the respective UN for quality, timeliness and effectiveness of services provided to the ultimate beneficiaries and activities carried out, as well as for the use of funds. Implementing partners at regional levels are accountable to BoFED's, the respective UN agency and MoFED for the quality, timeliness and effectiveness of services provided and activities it carried-out, as well as for the use of funds. BoFED's are accountable to MoFED and the UN agencies for the quality and timeliness reports, the use of funds, timely release of resources to the responsible parties, monitoring and evaluation of progresses. Details of responsibilities of each actor are indicated below.


2.1.1. The Government Coordinating Body (MOFED):

The Ministry of Finance and Economic Development assumes ultimate responsibility on behalf of the Government for overall management of UN ExComs programming and is ultimately accountable to ExComs for all agencies programming resources under Government management.

MoFED through its Multilateral Cooperation Department is the focal point of the Government for all communications with ExComs on programmes or projects in Ethiopia. This includes responsibility for the supervision of performance of the Implementing Partners, assessment of progress and technical quality, and attainment of objectives.

In close collaboration with ExComs, MOFED is responsible for co-ordinating the preparation of CPD, CPAP and AWPs. MoFED also receive all AWPs from regional BoFEDs and forward the AWP to concerned sector Ministries so that they can compile one AWP for their sectors including activities to be carried out at Federal level.

MOFED in collaboration with the UN ExComs is responsible for the allocation of ExComs' resources among programmes/projects as well as regions based on the Federation grant allocation formula.

MoFED is entrusted with the responsibility of mobilizing resources, and thus will work closely with the ExComs to mobilize additional resources that are necessary for achieving the UNDAF as well as the CPAP goals.

MoFED in consultation with ExComs will review and approve all AWPs received from Sector ministries/institutions.

MoFED signs on the Country Programme Action Plan (CPAP) and Annual Work Plans (AWP) on behalf of the Government.

MoFED has also the duty of monitoring and evaluating the implementation of programs as well as achievements of results: holding annual country programs and UNDAF review meetings. MoFED will also hold mid-term evaluation of selected programs.

MOFED provides support in the recruitment, selection and management of program/project personnel and National UNVs.

MOFED supports IP and RP in identifying training institutions and facilitating various trainings and study tours to be held if requested.


MOFED, in collaboration with BOFED, will carry out timely and continuous capacity need assessment and will provide necessary capacity building support.

MOFED will organize orientation and training workshop on UN policies, procedures and regulations and Program Implementation Manual to different federal and regional government implementing partners.

MOFED coordinates the annual program/project audit activities.

MOFED coordinates each IPs to take corrective measures and submit reports on the action taken based on audit findings.

MOFED opens one bank account for each sector supported by the UN Excom for Federal IPs and to this end the Federal IPs will submit request to MoFED.

2.1.2. Federal Implementing Partners:

Federal Implementing partners, who jointly sign on AWP, are represented by the sectoral ministries and other institutions, which have been selected as partners for the implementation of UN assisted programs. They will have the following main duties and responsibilities.

Provide strategic guidance and lead the preparation of Annual Work Plan (AWP) for their respective sectors at the beginning of each year in consultation with their regional counter parts.

Prepare one sectoral AWP by compiling all AWPs received from each region through MoFED by including activities implemented at Federal level. The compiled sectoral AWP will be submitted to MOFED.

Sign on the finalized AWPs Implement their sector AWP, assisted by UN, to be

implemented at federal level. Follow up, Monitor and evaluate the implementation of the

sector AWP both at Federal, Regional and Woreda level. Prepare/compile national sectoral bi-annual and annual

progress reports on the implementation of AWPs, taking into account activities implemented at Federal level and in regions, and submit to MoFED and the UN ExCom.


Prepare quarterly financial and narrative reports for the activities carried out at federal level and submit to MoFED and the UN.

Provide technical assistance to regional and woreda counterparts as required.

Responsible for the delivery of activities and achievement of results indicated in their respective AWPs, for activities to be implemented at federal level

Coordinate and facilitate the auditing of programs as requested by MoFED in consultation with the UN ExComs.

2.1.3. Regional Implementing Partners:

Under this arrangement the Sector Bureaus and BOFED represent regional implementing partners each having distinct role. While the sector Bureaus are responsible for the preparation of their AWP, for the implementation, the delivery of the results indicated in their AWP and the preparation of reports, the later is responsible for the financial management, compilation of financial and activity report and preparation of financial report, the details are indicated below.

2.1.3.1. Bureaus of Finance and Economic Development (BOFED)

Regional Finance and Economic Development Bureaus are entities that are mandated by the regional council to coordinate and manage development activities of each region and accordingly responsible to allocate resources to woredas, manages all kinds of public resources, coordinate the preparation of sectoral plans and prepare and compile development performance reports of a region, monitor and evaluate the performances of sector institutions etc. Given these roles by the regional council, the responsibilities of BOFED, through its Development Cooperation Section, related to UN ExCom assisted program will be the following. Coordinate the preparation of all sectoral AWPs of their

respective regions; submit the plan to MOFED, with copy to the regional council in June every year.

Allocate UN resources to selected woredas in consultation with these line bureaus and other relevant bodies.

Co-sign on the AWPs for their region. Submit quarterly advance requests and financial report

using Funding Authorization Certificate of Expenditure


(FACE) format to the UN, with copy to MoFED and concerned Sector Ministries based on approved AWPs.

Compile both activity and financial reports on a quarterly basis for ExCom assisted programs and submit to the respective UN ExCom, MoFED and sector ministries.

Follow up on the implementation progress for each sector AWP

Hold biannual review meeting for all sector programs assisted by UN agencies in the region and conduct monthly follow up meeting focusing on issues.

Conduct assessments as required, to identify the capacity gaps of implementing partners and responsible parties in the region with the objective of filling the gaps and to facilitate the implementation of programs (AWPs)

The Development Cooperation Section through Finance Section of BoFED will perform the following:-

Manage all financial aspects of the programs. Open a bank account for each sector assisted by ExCom. Maintain separate ledgers for accounts used by different

UN assisted programs. Receive funds from the UN ExCom on behalf of all sectors

and notify the same to the sector bureaus within a week's time for their subsequent actions.

Transfer funds to WOFED up on request from concerned sector bureaus with in a week’s time of the request submission for activities to be implemented at woreda level.

Based on approved AWP, transfer funds to Sectoral Bureaus for activities to be implemented at regional level up on request from concerned sector bureaus, within week's time of the request.

2.1.3.2. Sectoral Implementing Partners (Sector Bureaus) of regions

Facilitate the preparation of the woreda and sectoral annual work Plans, prepare the regional sectoral bureau workplan, compile the overall sectoral regional workplan and submit to BoFED, in May every year.

Primary responsible body for delivering results indicated in their AWP.

Facilitate, monitor and follow up the day-to-day implementation of their AWP at all levels in the regions.

Responsible to collect reports from their woreda sector offices and other responsible parties and compile regional


sector reports on a quarterly basis and submit the same to BoFED with in 10 days after the end of the quarter.

Request BoFED to release funds to selected woredas (through WoFED) for the activities to be carried out at woredas and lower level.

Request BoFED to release funds to their account for activities to be carried out at regional level by the Bureaus.

Effect payments for activities to be carried out at regional level, by the Bureau.

Prepare quarterly financial (FACE format) request and report for activities to be implemented at regional level by Sector Bureaus and submit to BOFED with in 10 days after the end of the quarter.

Prepare the documentation and participate in monthly (as required), biannual and annual review meetings.

Provide technical assistance to their respective woreda offices and other responsible parties.

Settle accounts, every month, with original documents to BoFED.

2.1.3.3. Woreda Sector Offices:

Woreda Sector Offices are the implementers of programs at the woreda level and also the ones dealing with all other responsible parties in implementing programs. The main duties and responsibilities of the Offices are:

Preparing their woreda sectoral AWP and submit to their respective sector bureaus, with copy to the woreda cabine, before 30th of April of each year.

Request WOFED to effect payments for activities to be carried out at woreda and kebele level.

Implement AWP or enter into agreement with other responsible parties to implement AWP to ensure that results are met.

Prepare quarterly woreda sectoral physical reports and submit to their respective sector bureaus of regions, within 10 days of the next quarter, to the reporting period.

Closely follow up the implementation of AWPs by other responsible parties.

2.1.3.4. WOFED

WOFEDs are responsible for the following main activities.


Open Bank accounts as requested by BOFED Operate bank accounts as per financial management

system indicated in this manual Receive resources from BOFED as per the agreed AWP. Effect payments within 7 days upon request from Woreda

Sector offices. Prepare quarterly financial reports and submit the same to

BoFED within 10 days after the end of the quarter.

2.1.4. The United Nations Agencies (the ExComs):

The United Nations organisations play a key role in the program by, among others, allocation of resources to the implementation, monitoring of activities and evaluation of programs. The main duties and responsibilities of these agencies will include the following:

Assign resources for country programs and in collaboration with sector ministries and MoFED select main thematic areas,

Mobilize additional resources in consultation with MoFED, Provide support to AWP preparation. Sign on CPAP and AWP, Provide program support and financial assistance, Provide technical assistance as per Government TA guideline to

ensure achievement of CPAP and UNDAF results. Support in identification and/or recruitment of programme or

project personnel and national UN Volunteers, Support in identification and facilitation of training activities,

including fellowship, short-term training and study tours, Support in procurement of goods and services as required based

on approved AWP Provision of access to ExCom-managed global information

systems, including rosters of consultants and providers of development services, etc.,

Access to international knowledge network, Access to latest technology as relevant to programs, Support in identifying lessons learned and best practices across

the globe, Assisting in resource mobilization, Direct payments: UN ExComs may also act as paying agents in

cases where the Implementing Partner is not able to effect payments owing to constraints such as limited flexibility in the banking system or exchange control regulations, or when it is clearly more cost-effective for ExComs to make the payment. In these cases, the ExComs will, upon request, make direct payments,


All support services provided by ExComs will be carried out in accordance with the regulations, rules and procedures of ExComs.

The cost of the support services provided by the ExCom country offices in the implementation of programme/project will be recovered, on the basis the CPAP and subsequent agreement with MoFED, from the budget of the respective programme or project under the relevant budget line. The amount of such reimbursement shall be mutually agreed upon between MoFED and the ExCom country offices on a case-by-case basis, depending on the volume and complexity of the services rendered.

2.2. Programme Management Staffs at Federal Level

A Programme Management Personnel (PMP) that serves all the UN ExCom programs of a sector shall be provided to the Implementing partner, where there are critical manpower gaps.

The project personnel will be placed in the respective IP departments that are responsible in carrying out coordination, planning, day to day management, follow up, monitoring and reporting on the UN ExCom assisted projects and programs.

2.2.1.The Project Personnel which are working under the direct supervision of the concerned departments are primarily responsible for the planning and overall management of programme activities, physical/financial reporting, accounting, monitoring and evaluation of the programme or project, supervision of the responsible parties, for the management and audit of the use of ExCom resources and provide technical assistance to regions.

2.2.2.The PMP will also have duties of compiling all sectoral AWP and prepare one AWP for the sector including AWP of each region forwarded through MoFED and activities implemented at Federal level.

2.2.3.The PMP will also be engaged in preparing quarterly financial and activity report for activities implemented at Federal level with in 7 days after the end of the quarter. The concerned IP will submit the report with in 10 days to UN ExCom and MoFED.

2.2.4.Provision of PMP to the IP will take into account the differentiated need and capacity of each IPs, and the need for quality service delivery. Therefore, an IP can have the following full time staff members for smooth programme delivery:


(a) National Program Coordinator (NPC) assigned by the IP(b) Assistant Program Coordinator (recruited or assigned)(c) A Finance Officer (recruited or assigned)(d) A Secretary-Cashier (recruited or assigned)(e) A Driver/messenger (recruited or assigned)

2.2.5.Training shall be planned and implemented to strengthen the capacity of PMP.

2.3. Programme Management Staffs at Regional Sectoral Implementing Partner

Project personnel will also be provided to the regional Sectoral IPs who will be fully accountable to and supervised by the concerned departments of IPs.

2.3.1. Under the guidance and supervision of concerned department, the Program Management Personnel (PMP) within the regional IP is responsible for the planning and overall management & implementation of programme activities, for financial and physical reporting, monitoring and evaluation of the programme or project, supervision and for the management and audit of the use of the ExCom resources.

2.3.2. The Regional IP is accountable to the Regional Bureau of Finance and Economic Development (BoFED), in terms of submitting timely annual work-plans, performance reporting and accounting.

2.3.3. A Regional Programme Co-ordinator delegated by the Implementing Partner shall coordinate activities of project personnel at regional IP level. Based on the needs assessment and specific requirement of each Regional government entity, the Regional IP may have the following staff:

a. Regional Programme Coordinator (RPC) assigned by the relevant bureau

b. Assistant Programme Officer/s (recruited or assigned)c. Finance Officer (recruited or assigned)d. Secretary-Cashier (recruited or assigned)

2.3.4. The recruitment of personnel at regional level should always be based on the specific need of the concerned office.


2.4. Programme Management Staff at BoFED2.4.1.Under overall guidance of the Deputy Bureau Head of BoFED

Cooperation Section, the Program Management Personnel at BoFED is responsible to discharge all duties and responsibilities of BoFED listed in section 2.1.3.1 above. The Departments that are responsible for UN ExCom programs shall have the following project staff.

A. Regional Programme Coordinator (RPC) assigned by the relevant bureau

B. Assistant Programme Officer (recruited or assigned)C. Accountant/s (recruited or assigned) depending on needs.D. One Secretary-Cashier (recruited or assigned) depending on

needs.

2.5. Programme Management Staff at Sectoral Woreda Responsible Parties

2.5.1. The Implementing Partners, MOFED and the UN ExComs shall give special emphasis to need-based capacity development at the Woreda level to fill existing capacity gaps and utilise opportunities created, as a result of the devolution of power, for the smooth delivery of services and accountability for the resources allocated to each Wereda or kebele administration.

2.5.2. When technical staff is required for ExCom assisted programme/project implementation at the Wereda level, the Regional Implementing Partner in consultation with the Wereda Council and other appropriate office at the Wereda may assign (or may recruit) a focal expert for smooth communication, co-ordination and integration of ExCom assisted programme/project, as per TA Guideline.

2.5.3. The assignment of personnel and support shall give due considerations to the specific situation of each wereda. Accordingly, differentiated support shall be given to woredas to enable them implement the program by sustainably developing their program management capabilities.

2.5.4. Each Implementing Partner and Responsible Party shall provide the required facilities and assign or recruit qualified staff to enable effective programme/project implementation at Regional and Wereda level. The capacity Need Assessment should elaborate what is needed in terms of personnel, particularly and capacity development, in general at the Regional and Wereda level


3. Annual Work Plan Formulation & Approval

3.1. Lesson learnt from various Periodical Review Meetings elaborated in section 7.3 will serve as input for the preparation of subsequent Annual Work Plans. Thus as part of the preparation of AWP, at least Annual Review Meetings of Programs will be conducted immediately before the AWP preparation starts.

3.2. The work plan is a management tool that serves to organize the implementation of a programme/project in an efficient, systematic and co-ordinated way. It also serves as a tool for the release of funds, to monitor and assess results and to link interventions with the strategic results framework. The work plan consists of physical and financial plans.

3.3. The work plan is elaborated based on the CPAP document and defines or clarifies the following elements:

Expected outputs. Major activities (and sub-activities) necessary to achieve

each output, Indicators or targets set for the work plan period, Time schedule: scheduled starting time, finishing time and

the expected duration. Responsible parties for implementation Resources required for executing the activities

3.4. The preparation of the Annual work plan starts at Woreda level. The Woreda Sector Offices are responsible to prepare and compile the Woreda sectoral plans and forward the same to their respective sector bureaus at regional level. The regional Sector bureaus will consolidate the Woreda plans as well as activities to be carried out at regional level and submit the sector annual plan to BoFED. Throughout this process at woreda and regional level, the Implementing Partner will be responsible to ensure wider consultation and participation of all relevant stakeholders.

3.5. BoFED will coordinate the overall preparation of all annual work plans at regional level and forward the AWPs to MoFED with copy to regional council. MoFED then will communicate with sector Ministries to finalize their respective sector AWP.

3.6. Sector ministries will intern compile all Regional and Federal Sectoral AWP and submit the same to MoFED and UN ExCom.


3.7. MOFED and the ExComs will provide financial and technical assistance to the preparation process of AWP at regional and national level.

3.8. AWP will be prepared for every 12 months, breakdown into quarterly plans. To ensure the timeliness of the AWPs, the preparation of AWPs will start three months before the start of the new AWP period.

3.9. AWP will be approved and signed by MoFED, UN EXCOM, Sector Ministries and BoFED.

3.10. Programme/project management at both federal and regional levels should make sure that AWP are breakdown into quarterly financial and activity plan. The work plans shall be approved 15 days before the start of the period.

3.11. Quarterly work plans shall form the basis for submitting fund requests and release of funds to the respective programme/project accounts and also the preparation of quarterly progress reports.

3.12. There shall be an indication of when specific inputs are needed or expected to be delivered for each activity or sub-activity.

3.13. The work plan shall also be maintained electronically to facilitate easy monitoring.

4. IMPLEMENTATION

4.1. Implementation Start-up

4.1.1. Agreement between IP and Responsible Party (if implementers are other than IPs) should be signed at the start-up of implementation of programmes/projects as required.

4.1.2. Conduct Financial Training: HACT and FACE/ orientation workshops shall be organized and conducted to familiarize new programme staff of the various IPs and RP on financial procedures.

4.1.3. Open Bank Accounts:


All accounts for Federal partners are opened by MoFED, upon requested from Federal IPs.

All accounts for regional partners are opened at and managed by BoFED – WoFED. Accounts for Sector Bureaus for activities to be implemented at regional level by the respective Sector Bureaus can be opened and managed by Sector Bureaus. But Sector Bureaus receive funds only from BoFED.

BoFED will open bank account for each UN supported sector at regional level and WoFED open bank account at woreda level.

The account opened for each UN supported sector will be used for one or more agencies resources. If the account is used for more than one agency supported activities of a sector then separate ledgers/records should be maintained at BoFED/ WoFED.

Request Advance of Funds: The IP at Federal and BoFEDs at regions shall submit quarterly request of advance for funds (using FACE format) to the ExComs agencies (UNICEF, UNDP UNFPA and WFP), copy to MoFED and Sector ministries, based on the approved annual work plan.

4.1.4.Supplies, Equipment, Consultant, Training

(i) Refer to the budget amount in AWP to be delivered during the year.

(ii) Prepare list of supplies and equipment to be procured together with specification based on the CPAP and AWP.

(iii) Prepare TOR of consultants to be recruited together with required qualifications (required educational level, type of experience and length of experience) and duration of service.

(iv) Identify countries and institutions for training and study tour. Develop criteria for selecting candidates and prepare training plan with detailed cost breakdown.

4.1.5. Identify activities and potential institutions for sub-contract

4.2. Programme Budgets and Revisions of AWP.

4.2.1. Budget source and allocation


4.2.1.1. The budget for UNDP supported programme or project contains the allocations from TRAC or other UNDP source of funding, as well as, from cost sharing and Trust fund contributions.

4.2.1.2. The budget for UNICEF supported Programs are allocations from Regular and other resources.

4.2.1.3. The budget for WFP supported Programs are allocations from Basic and Supplementary resources.

4.2.1.4. The budget for UNFPA supported Programs are allocations from Basic and other resources.

4.2.1.5. All Other and Supplementary Resources are to be mobilised by the ExComs during the Country program period.

4.2.1.6. CPAPs include multi-year, annualized budgets to the Implementing Partners against which they are authorized to incur obligations for the current year and forward commitments against future years.

4.2.1.7. Budget allocation to the Regions and to the IPs is based on transparent criteria agreed by the Government and the ExComs. Generally, 80% of the budget is expected to be allocated to the regions and the remaining 20% to the Federal IPs. Of the total allocation to the regions, 80% will be allocated to woreda and the remaining 20% will be allocated to regional bureaus. Budget allocations among the regions would be exercised in accordance with the federal grant or resource transfer/allocation criteria.

4.2.1.8. In cases where there are similar activities for various program woredas and implementation of these activities by each woreda are found to be ineffective and costly, such activities could be coordinated by the Sector Bureaus, even though budgets are allocated for woredas.

4.2.1.9. All financial activities of ExCom supported programs revolve around the AWPs. The programme/project budget shall become operational only when the AWP has fully been signed by the Government (MoFED), the Federal IPs and ExComs and BoFED.

4.3. Budget Revisions

4.3.1.Project budgets can be substantively revised within the annual budget ceiling twice a year, if required. In such cases, one revision should be done in June in order to reflect budget requirements for the next Ethiopian fiscal year in conjunction with the work plan. The second one should be done in November in order to rephase budget from the current


Gregorian calendar year to the following, within the limits of the budget allocated to the Ethiopian fiscal year.

4.3.2.Annual budgets are not entitlements that can be carried over to the following years of implementation. Therefore, the budget that transfer to regions but not utilized will be accounted in and deducted from next year allocation.

4.3.3.Additional or new requests would normally be accommodated during annual work plan preparation (June) and during the second budget revision (November) and when it is jointly agreed upon by Implementing partner, Responsible parties, MoFED and ExComs.

4.3.4.Budget transfer from one Budget Line to another, when required, shall normally be undertaken in conjunction with the budget revisions process.

4.3.5.Federal IP and BoFED will submit budget revision request to MoFED and concerned ExCom for approval.

4.3.6.Each sector bureaus will submit their budget revision request, if any, to BoFED for subsequent processing and submission to MoFED and ExCom.

4.4. PROGRAMME/ PROJECT PERSONNEL

The Program/Project Personnel for the ExCom supported programs will have two main categories, namely, Project Support Staff and Technical Assistance.

4.4.1. Project/Program Support Staff (Category One)

As agreed in the CPAPs, project support staff, funded from the

agreed project support cost budgets of each agency will be

recruited and managed entirely within the rules and regulations of

the UN-ExCom agencies. However, if the UN ExCom intends to post

or assign any of the Project Support Staff in to IP at all levels then:-

- First, it should be ascertained that the skill gap cannot be filled by

category 2 (TA).

- There has to be a formal request to the donor from the

implementing partner, with a copy to MoFED, asking that skill to

be filled by Project Support Staff.

- The support staff will work for that specific IP.


- The support staff will also be accountable to the IP.

4.4.2. Technical Assistance (Category Two)

The Technical Assistance Personnel will be reflected in approved

AWP of a program and will be recruited based on Government

Technical Assistance Guideline. TAs will be deployed or posted in

IPs or RPs at all levels based on need and demand.

Such Technical Assistance Personnel shall be categorized as follows:

(i) Internationally recruited long-term experts or short-term consultants;

(ii) Locally recruited long-term experts or short-term consultants;

(iii) National and International UN Volunteers;(iv) Program personnel;(v) Administrative personnel.

4.4.2.1. Principles:

The following principle must be followed with respect to the recruitment process of TA:

(i) Competitiveness - The recruitment must be made on the basis of a wide search for the most qualified candidates, and selection of highly qualified and experienced personnel according to the job description and the CPAP and AWP.

(ii) Transparency - The recruitment process must be transparent and open, giving full and equal information to all candidates, with clear criteria for selection, and with the participation of several individuals in the decision-making process, for example through a committee.

(iii) Gender balance- the criteria set for recruitment should favorably encourage female experts/ consultants and contractors to apply and compete. Generally, the provisions of the Ethiopian civil service rule related to gender equality would apply during recruitment.

(iv) The ExCom Country Offices must be kept informed of the system and process of recruitment through the established mechanisms of consultation, and/or through


progress reports, terms of reference, recruitment committee decisions and any other relevant means.

(v) Consultants/experts shall start their consultancy work only after signing Service Contract.

(vi) A detailed work plan should be drawn up for experts/consultants to ensure optimal utilization of the personnel component.

4.4.2.2. Selection and Recruitment of Local Personnel Process

4.4.2.2.1. The IP and the RP shall advertise the existing vacancies in the local media stating the following: (i) Post to be filled and level of position(ii) Requisite academic/professional qualifications

and experience and core/functional competencies

(iii) Duties and responsibilities(iv) Duration of the position and the duty station of

the position(v) Supervision, other position related to the work

function and office setting(vi) Deadline for submitting applications.

4.4.2.2.2. The IP and the RP can also apply the short-listing selection method incases of urgency

4.4.2.2.3. The IP and RP will be responsible for the selection and recruitment of programme/project personnel for the respective vacancies advertised.

4.4.2.2.4. The IP and RP shall assess applications received and prepare a short list of suitable candidates for interview.

4.4.2.2.5. Short listed applicants shall be invited to appear before the Programme/Project Recruitment Committee for interview.

4.4.2.3. Selection and Recruitment of International Personnel Process

(i) The IP and RP shall advertise the existing vacancies in the local as well as international media and follow the same process indicated in 4.4.2.2.1. through 4.4.2.2.5.


(ii)When Special type of program personnel and TA is required, the IP may submit request to the ExCom to select and recruit program personnel and TA, as per the TA Guideline. In such cases; even though the ExCom rules and regulation applies for recruitment process and remuneration; the IP:-

a) will prepare and endorse ToR with support of MoFED and the UN ExCom.

b) will participate in the selection process and

c) finally will endorse the selection in writing

(iii) The selected international program personnel and TA will be directly accountable to the IP and will work under the direct supervision of program coordinator assigned by the IP.

4.4.2.4. Service Contract

(i) The IP/RP is required to enter into a contract with the selected person clarifying the nature of his/her services, duties and responsibilities, terms of payment, duration and other terms and conditions considered necessary for the circumstances.

(ii) The contract with International Consultant/Experts should be sent to the expert/consultant for his/her approval. If modifications are requested by the expert/consultant, the IP should review these changes. The contract may be amended taking into consideration the agreed amendments in view of the objectives of his/her mission.

(iii) The contract with Programme/Technical Assistance should consist, among others, the probation period; leave provisions (annual leave, sick leave, maternity leave), disciplinary measures, which will be in accordance with the government’s rules and procedures.

(iv) When the ExComs are requested to enter into contract on behalf of the IP/RP the ExCom rules and procedures will apply.

(v) All local appointments of Technical Assistance shall be subject to a period of probationary assessment lasting three months. Employees working on part-time and


consultancy appointments shall not be subjected to probation.

(vi) Project/programme-based TA is paid salaries. No top-ups, over-time & part-time payments shall be made to civil servants for performing tasks under ExCom assisted programmes/projects.

(vii) Performance Evaluation Form for Individual Consultant shall be completed at the end of the contract period and submitted to the relevant ExCom agency and MoFED.

4.4.2.5. Remuneration and allowances

(i) IP, RP shall pay salaries of the Technical Assistance at national and regional levels, other than those selected by the ExComs, in accordance with the approved salary structure.

(ii) National programme/project TA personnel are not exempted from paying taxes. It shall be a joint responsibility of the Programme/Project Manager and the Programme/Project Finance Officer/Accountant to ensure that taxes are properly and promptly deducted from each Programme/Project TA personnel salaries and remitted to the Ministry of Inland Revenue or the relevant Regional tax collecting body as per Government rules and procedures.


SALARIES FOR PROJECT STAFF (TA) IN THE IPs/RPsSALARIES FOR PROJECT STAFF (TA) IN THE IPs/RPs

Title of Post Qualification & ExperienceDuration of Assignment

Base salary Birr

Salary Ceiling Birr

Assistant National Programme Coordinator at Federal Level

Bachelor degree and a minimum of 8 years of experience or Masters degree and 6 years of experience or PhD and 4 years of experience, out of which at least half of the experience should be in project/programme management.

One year with possibility of extension

3,500 4, 000

Finance Officer/

Accountant at Federal Level

BA in accounting with eight years of experience out of which at least half of the experience should be in project finance administration. Computer skill is essential.


3,500 4, 000

Assistant Regional Programme Coordinator

College Diploma and a minimum of 5 years experience Bachelor degree and 3 years of experience or Masters and 4 years of experience or PhD and 1 year of experience, out of out of which at least half of the experience should be in project/programme management.


2,500 3,000

Accountant

(Regional)

College Diploma in accounting with 4 years experience out of which at least half of the experience should be in project accounting.


2,500 3,000

Accountant

(Woreda)

College Diploma in accounting, depending on the Woreda peculiarity


1,300 2,000

Secretary-Cashier

College Diploma in Secretarial Sciences from recognized College with three years of experience and computer skills in office applications.


1,500 2,000

Driver/Messenger

12th grade completes with a third grade driving license or above and age 35 years and above


1,000 1,800


REMUNERATION SCALE FOR NATIONAL CONSULTANTSREMUNERATION SCALE FOR NATIONAL CONSULTANTS

The recruitment and remuneration rate for national consultants should be set based on results expected, complexity of the assignment and the quality of the work and the competencies, qualifications and years of experience required to discharge the duties in the TOR.

Additionally, the following points should be taken into account when negotiating the rate with the national consultants/experts:

1. The expected output and the methodology used as elaborated in the ToR or technical proposal submitted by the consultant/expert

2. The technical/professional competence (relevance) of the consultant/expert for the assignment

3. The experience of the consultant (or firm) as elaborated in the CV or profile

4. Performance Evaluation record of the consultant/experts/firms, if the consultant has had work prior experience with ExCom assisted programmes/projects or other organization

5. Feedback given by references or former employers about his/her performance

6. Payment history of the consultant/firm in similar or comparable institution(s) and or positions

7. The remuneration rate for national consultants/experts payable by the Implementing Partner/Responsible party shall range up to Birr 1,500/day, including taxes.

8. If the experts are employees of a government institution they should provide evidence that they are on leave.

9. If such consultancy is managed by the UN-ExCom, the personnel shall have a valid life insurance policy as well as medical certificate of fitness for the duration of the assignment as well as pass the UN advanced Field Security Course and any other conditions stipulated by the UN agency rules and regulations as at time of the contract

10. All other costs of the consultancy work other than the remuneration shall be born by the Contractor or reimbursed to the consultant up on prior agreement by the contractor and provision of original receipts.


4.4.2.6. The remuneration rate for national consultants payable by the IP and RP shall be set on a competitive basis taking into account the following.

1. Expected output and the methodology used as elaborated in the ToR or technical proposal submitted by the consultant/expert

2. Technical/professional competence (relevance) for the assignment and complexity of the tasks assigned

3. Experience of the consultant (and /or firm)4. Feedback given by references or former employers

about his/her performance or performance records in ExCom assisted programmes

5. Payment history of the consultant in similar or comparable institution(s).

4.4.2.7. When ExComs are requested to recruit on behalf of the IP/RP, the remuneration rate of ExComs shall apply.

4.4.2.8. Remuneration for International Consultants/Experts (consultancy fee) to be paid to International Consultants/ Experts will depend on his/her experience, technical competence, field of expertise, ToR, etc. The IP may use the proforma costs of major UN agencies for this component while negotiating the remuneration with the international experts/consultants.

4.4.2.9. International travel costs, daily subsistence allowance and terminal allowances for Programme Management staff, other experts, and consultants will be paid according to UN rates, rules and procedures.

4.4.2.10. The initial rate of Daily Subsistence Allowance (DSA) for travel within Ethiopia for national professional and support staff of the program and national consultant is given below. These rates shall be subject to periodic reviews. For professional staff- Birr 150 per day. For administrative staff (secretary/ cashier, Driver/

messenger, etc)- Birr 100 per day. For missions of duration of less than 10 hours or that

would be completed before mid night only 50% of the applicable DSA shall be paid.

DSA payment for others (farmers, community members etc) as per government rules and regulations.

4.5. TRAINING


All training planned and executed under ExCom assistance should be based on relevance to the output and outcome results of the CPAPs/UNDAF and contribute to sustainable capacity building at the service provider levels for the relevant institution and personnel. The aim is to enhance the professional skills of the trainees to deliver services related to the MDGs and UNDAF/PASDEP outcomes. Typically, the training component under ExCom sub-programmes comprises individual fellowships, other training including group training and in-service training. All training should be based on training needs assessment, and the IP and RP should assess the training needs of the programme personnel which should be part of the AWP. The following describes in detail how the different training should be administered.

4.5.1. Fellowships

4.5.1.1. Usually, training at a single location abroad, lasting over a month qualifies as a fellowship. Candidates shall be selected for fellowship based on the objectives and budget provisions in the AWP with clear relevance and link to the CPAP/UNDAF results.

4.5.1.2. Candidates shall be nominated for fellowship/study tours by the concerned IP/RP as per the existing government rules and procedures.

4.5.1.3. The ExCom country office shall directly charge the budget line for the fellowship/study tour and inform the IP/RP of the premiums paid for information and records. The IP/RP would provide the ExCom agencies with an authority, by letter or agreement at the beginning of each calendar (Gregorian) year for this expenditure to be incurred directly.

4.5.1.4. The beneficiary trainee and or his/her institution shall take responsibility for the insurance, medical and ancillary costs such as death, disability etc. as per the prevailing rules and regulations of the UN.

4.5.1.5. The UN ExCom funds and or agencies shall be utilized or responsible for insurance, medical and ancillary costs for non UN staff.

4.5.1.6. The IP/RP will negotiate with foreign training institutions with regard to the training fees.

4.5.1.7. A formal undertaking shall be entered into by the institution from which the trainee is selected to ensure that he/she continues to serve the institution/organization for a minimum period required as per government rules after return from training, and that in the event of their leaving the institution/organization before the stipulated duration, they


would reimburse to the institution the actual cost of the training.

4.5.1.8. Stipend and/or allowances for staff on training abroad shall be paid according to rates established by the UN. The stipend that the officials receive while on training is not a salary or an honorarium. Therefore, during the fellow's training abroad, IP/RP should continue to pay his/her salary and allowances at home as per the relevant regulations set by the Federal Civil Service Agency.

4.5.1.9. All personnel or staff who participated in local or foreign training courses shall be required to submit a fellowship training Report upon return.

4.5.1.10. Insurance: Participants and or their institution shall provide coverage for medical expenses, death and permanent disability of fellows/study tour officials during their travel and training/visit.

4.5.1.11.The ultimate responsibility for insurance coverage lies with the IP.

4.5.1.12.Extension and Cancellation of Fellowships: The programme/project authorities should inform ExCom agencies promptly of any extension or cancellation of a fellowship/study tour and follow up arrangements, otherwise funding may not be assured for such deferment as funding sources may expire.

4.5.1.13.Application for Claims: Application for agreed and authentic claims with the signed mission report (in standard format prescribed by the UN agency) under the fellowship should be sent, to the ExComs offices in Addis Ababa within three weeks. Any claim submitted later than 3 weeks shall be forfeited.

4.5.2. Study Tours/ Group Training

4.5.2.1. Training, learning and study tour abroad at several locations in one go or at a single location for a group qualifies as a study tour. Usually this is arranged for a group of counterpart personnel, making it group training, experience sharing or learning. The main purpose is learning by seeing. The duration is less than a month.

4.5.2.2. Study tours are organized in accordance with the programme/project work plan. Implementing partner/ responsible party must ensure external travel by the most economical route and that allowances do not exceed prevailing rates of the United Nations system;


4.5.2.3. While preparing the programme for study tour, the IP/RP and UN agency should keep in view the following considerations.

(i) Study tours should be kept to a minimum and the composition of study teams should not be overly large. They should be of limited duration normally not exceeding a month but preferably less.

(ii) Study tours should be limited to not more than two or three countries in a region at a time except where limited opportunities compel choices to certain locations.

4.5.2.4. Payment for Study Tour

(i) Officials going on study tours are entitled to Daily Subsistence Allowance (DSA) applicable to the places visited and Terminal Allowance. DSA is calculated on the basis of number of nights spent at each place. The UN rules and regulation would be followed in DSA payment.

(ii) The Terminal Allowance for international travel will be paid according to Each Exocms regulations. This allowance is to cover taxi charges, etc.

(iii) The official shall submit, within fifteen days after return, a travel claim with mission report in the prescribed format of the UN agency.

4.5.2.5. Study Tour Report: It is mandatory for the officials to submit a report about the study tour abroad within fifteen days of their return. A copy of each report should be sent to the concerned IP and ExCom Addis Ababa

4.5.2.6. The organizing institution should be encouraged to organise a discussion forum for study tour teams to share experiences and lessons with relevant experts/institutions at federal and regional levels within one month of return. Similar discussion forum may be organised at the regional level by the respective study tour participants and the regional IP.

4.5.2.7. The procedures and regulations of insurance, extension and cancellation of fellowships, and application of claims specified for fellowships also apply for Study Tours participants (ref. 4.5.1.1-4.5.1.13 above).

4.5.3. In-Service Training

4.5.3.1. In-country training (seminars, workshops and other) is organized by the IP/RP and UN in accordance with the


approved annual work plan and a mutually agreed-upon budget. In-service training consists of training programmes for specific groups to enhance their skills and knowledge or experience.

4.5.3.2. In-service training procedures are listed below:-

(i) The national staff responsible for the training programme has to prepare a detailed proposal for the in-service training including the objective of the training, duration and specific dates of the programme, participants/target group for the training, resource persons, topics to be covered, expected output and outcome results of the training, venue and detailed cost breakdown of the programme and criteria/ qualifications for selecting trainees/participants, plan for evaluation of training output and outcome results including follow up actions (specifying who, when , where etc).

(ii) The proposal shall be submitted to the National Programme Co-ordinator/ Regional Programme Co-ordinator who will review it to make sure that it is prepared in accordance with the this manual.

(iii) Selected institutions shall be contacted to serve as venue for the training. Negotiations regarding cost of accommodation and mode of payment shall be made by the institution (IP, RP and UN) organizing the event.

(iv) When an in-service training activity is conducted at a location other than the participant’s duty station, the participant is normally entitled to daily subsistence allowance (DSA) in accordance with DSA rates specified in this manual. No DSA will be paid if training is conducted at the participants’ duty station. If the training is conducted outside of trainees’ compound, a transport allowance of Birr 50 per day shall be paid to each participant. In cases where training is arranged with full boarding and lodging then, trainees are only entitled 20% of the DSA rate for incidental expenses.

4.5.3.3. At the end of a training activity, the participants take part in an evaluation exercise to indicate to what extent their learning goals and expectations have been met by the training activity as well as the quality of the materials and pedagogy. Normally a questionnaire is used to conduct this evaluation. The training report must include an analysis of the training evaluation.

4.5.3.4. Action will be taken as required to ensure effective utilization of training activity, e.g. proper reassignment of trainees.


4.5.3.5. In combination with in-service training or separately, the IP/RP shall organise experience-sharing visits among implementing partners or among woredas/zones within the region on best practices and lessons learned.

4.5.3.6. When an in-service training is organised and resource persons are engaged from the IP/RP or other relevant institutions, a reasonable allowance (in line with provision in 4.4.5.3 above) shall be considered for preparing training materials and conducting the training or for giving presentations, provided that such training is not part of the responsibility of organizer/provider.

4.6. SUPPLIES and EQUIPMENT

4.6.1. Introduction

4.6.1.1. ExComs provide supplies and equipment as part of the support programs,

4.6.1.2. The supply and equipment component shall comprise locally and off-share procured expendable and non-expendable supplies and equipment such as medical equipments, medical facilities, teaching materials, heavy water drilling machines, water schemes maintenance equipments, vehicles, spare parts, office furniture, filing cabinets, office machines, cameras, projectors, briefcases or other items as determined by the Government. Cost for the procurement of supplies and equipment shall be budgeted in AWPs. Local procurement includes equipment procured through local agents or from local suppliers in the open market.

4.6.2. Procurement Principles and Processes

4.6.2.1. All procurement requirements should be indicated in the approved AWP.

4.6.2.2. Economy, efficiency, transparency and competitiveness shall be given due consideration in carrying out procurement function.

4.6.2.3. Procurement of goods and services shall be based on value-for-money principle and guided by competitive bidding.

4.6.2.4. Price, quality, delivery time and procurement feasibility shall determine the procurement source, modality and delivery mode of the equipment and supply.


4.6.2.5. All supplies and equipment procured by the government entities will follow government procurement rules and regulation.

4.6.2.6. At a written request of the IP, the UN ExCom will procure using agency specific rules and regulation. In such cases the requesting IP shall:

(i) Ensure approval and availability of fund to cover cost from program/project as well as allocation of fund to cover tax from government budget.

(ii) Timely identify in qualitative and quantitative terms, goods and services to be procured and prepare purchase requisitions with technical specifications/descriptions indicating the essential characteristics of each item

(iii) References to brand names shall be avoided in requisitions. Note should also be taken that incomplete or over-elaborated technical specifications/descriptions slow down the procurement process and may result in late deliveries.

4.6.2.7. The IP/RP can also consider the following options to procure and deliver equipment.

Other UN system Sub-contract to private organization and follow the

processes indicated in 4.6.2.6.4.6.2.8. Contractors/subcontractors, vendors and suppliers are chosen

through competitive bidding.

4.6.2.9. The beneficiary institutions shall secure financial provisions in government budgets to pay tax for imported supplies and equipment to be internationally and locally procured. The beneficiary institutions shall ensure that government budget provisions are made to cover taxes on imports of supplies and equipment before equipment is ordered

4.6.2.10.The responsibility for the contents of a purchase requisition rests primarily with the requisitioning agency. However, this does not exempt the procurement agency from reviewing the purchase requisition for obvious errors, clear omissions or grave inaccuracies. Necessary clarifications between the procurement officer and the requisitioning agency should take place prior to the issuance of solicitations documents or other forms of contact with the suppliers.


4.6.2.11.Upon the final evaluation/verification of technical specifications by the procuring institution, the complete procurement process would be undertaken. This would include preparation of bidding documents, identification of qualified suppliers, bid opening and evaluation, placing of purchase orders, transportation, installation of equipment, handling of claims and verification of invoices and payments.

4.6.2.12.All activities shall be done in close co-operation and consultation with the Programme/ project personnel.

4.6.2.13.The Procurement Organization shall advise the end beneficiary institutions on the arrival of the equipment, arrangements for customs duty/tax payment and dispatch of equipment to the programme/project site.

4.6.3. Verification, Placement of Damage and Insurance Coverage and Claims

4.6.3.1. The most important responsibility of the end beneficiary institutions at the time of delivery shall be, to verify the physical condition of the equipment delivered. The procurement agent shall immediately inspect supplies, equipment or other property received to ensure that the items comply with the specifications of the purchase contract and that their condition is satisfactory (pre-inspection certificate).

4.6.3.2. The verification shall be done as soon as possible (in any case not later than the maximum period within which notice of damage/loss should be given to qualify for insurance claim).

4.6.3.3. If the verification indicates damaged/short-shipped/ landed equipment:

(i) The agency that undertook procurement shall request the supplier or Insurance Company, as the case may be to replace damaged or short-shipped equipment within the stipulated period. The request shall state the precise nature of the damage. If the damage is only partial, the name and likely cost of the part to be replaced shall also be provided.

(ii) Where the amount involved in an insurance claim is substantial, the settlement of the claim is likely to be considerably delayed and may eventually only be partial. In order not to delay the programme/project activities, new purchase orders and budgetary allocation;/provisions may have to be undertaken.


(iii) In cases where the specifications of the equipment received are found to be different from those contained in the purchase order the supplier and the insurance agent shall be informed immediately for a replacement or recovery of the cost.

4.6.3.4. Quarterly procurement tracking report will be submitted by the procuring organization to the IP/RP.

4.6.3.5. As the IP/RP receives an item, the received equipment shall be entered in the property records.

4.6.4. Insurance coverage and claims-procurement

4.6.4.1. Coverage

(i) The transporter shall cover the equipment against all risks from the time the consignment leaves the seller warehouse until the equipment has been received and tested at the agreed delivery point. If the ExCom agency is self-insured then it may apply the procedure already in use.

(ii) Where for some reason the seller is not able to arrange for the desired coverage, the programme/project management shall make separate arrangements for the desired coverage including arrangements to ensure continuity of the insurance up to the stage of testing and installation. The premium involved shall be charged on the programme/project budget.

4.6.4.2. Insurance Claims

(i) Processing Insurance claims can be quite involving and this may not be economical in cases of very small amount say under US$ 200. Small and urgently needed spares and replacement parts shall be procured without waiting for payment through Insurance claims.

(ii) IP/RP shall submit written claims to the insurers as soon as possible but in any event before the maximum period indicated below:

(a) For air shipment - 14 days(b) For sea shipment - 30 days


(c) For non-delivery by air or sea - 14 days(iii) Documents required to process insurance claims shall

include the following:

Report of the programme/project management on initial verification/survey report of the insurance surveyors

Estimates or invoices of the cost of repair or local purchase of replacement parts wherever possible approved by the surveyor

Copy of the invoices of the original shipment Copies of letters of claims sent to the concerned parties

and their responses ‘Short Landing Certificates’ or ‘Certificate of Loss’ when

the entire cargo is missing.

4.6.5. Installation and Commissioning of Equipment

4.6.5.1. The IP/RP shall make advance arrangements with the local agents/representatives of the suppliers for installation and commissioning of the equipment. If the installation and commissioning of the equipment are to be carried out by the suppliers themselves, the IP/RP shall ensure that the suppliers’ engineers and technicians arrive at the programme/project site at the appropriate time. The communication shall be well documented to ensure that warranty and insurance claims are not jeopardized.

4.6.5.2. The commission to local agent/representative of the seller shall be paid only after satisfactory commissioning and completion of the final acceptance test.

4.6.6. Operation and Maintenance of Equipment

4.6.6.1. The IP/RP is responsible for ensuring that the use of equipment and supplies procured with ExCom agencies funds is strictly for purposes of the programme or project.

4.6.6.2. The IP/RP shall see to proper maintenance of the equipment as per the manufacturer manual and ensures adequate budget is allocated.

4.6.7. Inventory and Control of Supplies and Equipment

4.6.7.1. All IPs and RPs must maintain an inventory recording for the acquisition and disposition of property and equipment.


4.6.7.2. ‘Government Goods Receiving Note’ and ‘Issue Notes’ shall be prepared at the time of receiving and issuing expendable and non-expendable equipment. Information on each item of equipment acquired by the programme/project authorities and on disposition of equipment shall be recorded in the Non-expendable Property Ledger

4.6.7.3. IP/RP shall ensure that there is a central record of the names of the custodians and the locations of the fixed assets assigned to programme/project personnel.

4.6.7.4. All inventories of equipment shall be physically verified against records at least annually. The IP shall forward a certified inventory of all non-expendable equipment to concerned ExCom Country Offices annually within 30 days after the end of the fiscal year.

4.6.7.5. The entity with property rights to the equipment must organize and pay insurance coverage for that equipment. Insurance coverage will only be for vehicles. Other valuable equipment may be insured if deemed necessary.

4.6.7.6. A separate asset register book should be established for procured assets under the new UN ExCom assisted program fund with an entry and record sheet for each item. Each asset should be tagged with a unique reference number for identification purpose. The register will record important information about each asset such as:

a) When the item was purchased & how much it cost?

b) By whom the equipment/property has been procured?

c) Where it is located?d) Identification number?e) Status of the asset?

4.6.7.7. The accounting period for recording and reporting financial activities is from January 1 - December 31.

4.7. SUB-CONTRACT

4.7.1. Sub-contract with Firms

4.7.1.1. Sub-contracts as part of AWP, could be awarded either through government or UN ExCom agencies depending on the nature and complexity of the assignment.


4.7.1.2. When the IP requested in writing the ExCom to proceed with the sub-contracting, then the Excom will hire sub-contractor using agency specific rules and regulation.

4.7.1.3. When the Government entities are doing the sub-contracting activities then they shall use government rules and regulations and standards to select the most suitable sub-contractors on a competitive basis. They have to bid, evaluate, and select. The following criteria shall be considered in the selection process

Competitive cost;

Timeliness of delivery of product;

Quality of work;

Technical skill and capacity;

Relevance of experience in the area of competence;

Performance appraisal and references on similar work experience;

The Government entities who engaged in subcontracting shall use government own rules and regulations to set the level of pay for the sub-contractors, taking into account the following:

Nature, complexity and difficulty of task assignments;

Current market rates for similar work;

Qualification and experience of the sub-contractor;

4.7.1.4. The ExCom Country Offices may be consulted on its own practices and pay benchmarks, should the relevant IP have difficulties deciding on the reasonable pay level which matches the pay ranges for highly specialised technical services or negotiating such fees and finalizing the contractual arrangements with the selected consultant or firm.

4.7.1.5. A written contract shall be prepared by the IP/UN ExCom with the sub-contractor. The contract shall include among others, goods or services to be delivered, quantity, price, conditions to be fulfilled (warranty etc.), payment terms and terms of delivery.

5. FINANCIAL MANAGEMENT, ACCOUNTING AND REPORTING

5.1. Bank Account and Signatories


5.1.1. One bank account for each sector, supported by the UN ExCom, shall be opened by MoFED upon request by Federal IP, at Federal level and by BoFED-WoFED at Regional and Woreda levels to manage UN assisted program funds. However, separate ledgers/records and financial reports will be maintained for each ExCom supported programs.

5.1.2. Appropriate signatories shall be assigned in accordance with government financial rules and regulations to operate the bank accounts. A minimum of two signatures shall be required in all cases to effect disbursements/payments from a bank account. The signatories have the overall responsibilities to ensure that disbursements are authorized and effected in line with the procedures pertaining to government funds.

5.2. Fund Request

5.2.1. Fund Request Procedure

Funds are requested based on the approved AWPs Fund requests for activities to be implemented at federal level, are

submitted to the respective UN ExCom, copy to MoFED, by the Federal Sector Ministries or institutions (Federal IPs).

For activities to be carried out at regional level, fund request should be submitted to the ExCom only through BOFED. BOFED should, therefore, submit the fund request to the respective UN ExCom, with copy to MOFED and respective Sector Ministries.

Once fund has been released to BoFED from UN ExCom, then the respective Sector Bureaus will submit their request to BoFED to transfer funds to their account for activities to be carried out at regional level by the bureaus.

The Sector bureaus will also submit request to BOFED to transfer funds to WOFED for activities to be carried out at woreda level by woreda Sector offices.

Where the UN ExCom provide support interms of food or kind for development activities, then request to be made in terms of food items/in kind for activities to be implemented at regional and woreda level, will be submitted to the UN ExCom through BOFED, copying to sector bureaus, MOFED and Sector Ministries.


5.2.2. In order to ensure optimum use of ExCom resources, advances shall be based on the approved Annual Work Plan. Advances must not exceed funds required for the next three months. Replenishment of such advances would be made up on the submission of relevant reports:- specifically,(i) Implementing partners at Federal Level shall submit their

three months request for Advance of Funds to the ExCom agencies, copy to MoFED, for activities to be implemented at federal level using FACE format.

(ii) BoFED shall submit a three months request for advance to the ExCom agencies, copy to MoFED and sector ministries, for all ExCom supported programs to be implemented in their region, using the FACE format.

(iii) Prior to submission of the Request for Advance of Funds to the ExCom agencies, the IP/BoFED should check, verify and clarify the request to ensure that:

(a) The request is mathematically correct,

(b) The request corresponds to the AWP,

(c) Funds are available in AWP,

(d) The advance requested for is inline with the quarterly work plans,

(e) The required FACE is properly completed and signed by an authorised official,

(f) The work plans for the quarter for which funds are being requested have been submitted with the progress reports for the prior periods.

5.3. Fund Release Procedure

All cash will be transferred as per the harmonized cash transfer procedure (HaCTT).

Basically, there are four methods by which programme funds may be disbursed:

i. Direct cash transfers

ii. Direct payments

iii. Reimbursement

iv. Direct agency implementation


5.3.1. Federal Level

UN ExCom releases fund to Federal IPs based on approved AWP and upon request from Federal IP using Funding Authorization & Certificate of Expenditure (FACE), the UN ExCom will notify the transfer to MoFED in writing.

5.3.2. Regional Level

UN ExCom releases fund to regions through BoFED's accounts that are opened for the UN ExCom assisted programs in regions, upon request from BoFEDs using FACE format, the UN ExCom will notify the transfer to MoFED and BoFED in writing.

BoFED up on request from Sector Bureaus will release fund to WOFED for activities to be implemented at woreda level and to Sector Bureau for activities to be implemented by Sector Bureaus at regional level.

5.4. Payment of Programme Funds

5.4.1. For activities to be carried out at federal level, payment will be made by the federal sector institutions as per the approved AWP.

5.4.2. Respective Sector Bureaus will effect payments for activities to be implemented by the Bureaus at the regional level based on AWP.

5.4.3. As per the requests made by woreda sector offices, WOFED will effect payments for activities to be implemented at woreda level.

5.4.4. UN ExCom will transport food items as per the approved work plan and will report about the delivery to MOFED, BOFED and respective Sector Bureau and Ministries.

5.4.5. Once the ExCom directly transfer cash to the Federal IP and BoFED then disbursements/payments will be made from the quarterly advances by the Federal IP, BoFED, Sector Bureaus and WoFED which can take the following forms:

(i) Payments by Cheque


(a) Cheques shall be used to make payments whenever possible. For payments, which cannot conveniently be made by cheque, payment by bank transfer orders or cash withdrawals from the bank shall be made only when required.

(b) All disbursements of funds from the programme bank account must be supported by sequentially numbered Government Disbursement Vouchers, which shall be made in favour of the persons/institution to whom the money is due.

(c) The budget line to be charged and the cheque details shall clearly be indicated on the vouchers.

(d) Disbursements may be made by cheque or cash. Each and every cheque or cash payment shall be adequately supported by original documents such as:

A cheque or cash disbursement voucher Local Purchase Order Delivery Note Supplier’s Program Invoice and Sales Invoice Supplier’s acknowledgement of receipt of Cheque

or cash(e) Each disbursement voucher should be signed by a

assigned programme official, preferably the programme manager authorizing the payment, in addition to the official preparing it.

(f) The Disbursement Vouchers shall be properly entered in the appropriate column of the cashbook

(ii) Petty Cash Payments

(a) As much as possible, Petty Cash transactions shall be kept at a minimum and shall be restricted to sundry items such as office expenses. It is recommended that any single payment exceeding Birr 1000 be paid by cheque, where bank services are available.

(b) Petty cash transactions shall be recorded in a separate Petty Cash book, which shall be reconciled with the main cashbook on a regular basis at least on weekly basis.

(c) An imprest system whereby the replenishment of petty cash is equal to the amount previously


disbursed is recommended. For example, if the petty cash float is Birr 3,000.- per week and in a week say, only Birr 2,900 is disbursed out of the petty cash, the replenishment for the following week should be Birr 2,900.

(d) Petty cash transactions shall be adequately supported by appropriate third party documents and the petty cash payment vouchers shall be properly authorized by the programme Manager before the payment is effected.

5.4.6. The IP can also made a payment based on the approved AWP using other sources in cases where program funds due to different reason could not be made available on time by the ExCom agencies and later on can submit a reimbursement request with full supporting document to the concerned ExCom agency.

5.4.7. Direct Payment by ExCom Agencies on behalf of the Programme/Project:(i) The ExCom agencies may be requested by the Federal IP

and BoFED to make direct payments to other parties for goods and services provided to the programme or project. When ExCom agencies make a payment on behalf of the IP, the latter must forward to the ExCom Country Offices a standard form duly completed and signed by the IP. Documentation of payment made by the Country Offices through Direct Payment Request must be made available to the Federal IP and BoFED by ExCom agencies. Therefore, request for Direct Payment shall contain the following information:

(a) Project title and number

(b) Supplier’s name and address

(c) Supplier’s bank account number, bank name and address

(d) Currency and amount required

(e) Component/budget line number and description

(f) Obligating documents, such as purchase order or contract

(ii) Requests for direct payments shall only be processed after verification and authorization by the programme co-ordinator. All requests for direct payments must be adequately accompanied by original supporting documentation.


5.4.8. Direct Agency Implementation

(i) At the request of Government, the concerned ExCom or other UN agency may be called upon to implement portions of a programme or the entire project. In such cases the UN shall receive program funds directly from the ExCom, which they shall disburse on behalf of the programme. This does not, however, detract from the fact that the agencies are accountable to Government.

(ii) Upon agreement with the Government the ExCom can charge the programme and inform the IP the charges and the respective budget lines.

(iii) The ExCom shall maintain records of all financial transaction and report to the IP/MoFED/BoFED.

5.4.9. No payment will be effected for activities that are not included under the program budget/AWP.

5.4.10. In all offices where a working balance of cash is kept, a safe shall be provided for its safe custody. Safes shall be built into an inner wall or otherwise strongly secured to the structure of the building

5.5. Financial Accounting and Records

5.5.1. The IP at Federal level and Sector Bureaus/BoFED/WoFED at regional level shall use government rules and regulations to effect payments, collect money, receive supplies, and deliver equipments etc.

5.5.2. The IP at Federal level and Sector Bureaus, BoFED and WoFED in Regions are responsible for maintaining an accounting system that:

(i) Contains books, records and controls sufficient to ensure the accuracy and reliability of programme/project financial information and reporting.

(ii) Ensures that receipts and disbursements of ExCom funds are properly identified and that budgetary allocations approved under each category are not exceeded.

(iii) List of expenditure accounts are annexed to have a uniform & consistent accounting & reporting process.


(iv) Tracks the advances received and disbursements (expenditure records) made by ExCom agencies (direct payments) on behalf of the programme/project.

(v) All financial records are kept up-to-date with all ledgers and journals closed at the end of each month.

(vi) Sum paid to the bank accounts shall be entered in the bank column of the cashbook on the same day and shall be supported by the original of the bank deposit slip.

5.5.3. The assigned officials shall sign for every cheque book request. Unused cheques shall be treated as valuable document and kept under lock and key. Officials in control of Government bank account are responsible to ensure that the number of cheques taken from a chequebook corresponds with the number officially accounted for in the cashbook.

5.5.4. The numbers of cheques drawn shall be entered in the appropriate column of the cashbooks. Cheques shall be used in numerical sequence. Cheques spoiled or cancelled shall be entered in the cashbook with the word “cancelled” in the description and “Nil” in the bank column. Cancelled cheques shall be attached to their counterfoil and retained in the chequebook.

5.5.5. Bank Transfers:

Bank Transfer Orders issued shall be numbered in sequential order and entered in the appropriate column of the cashbooks. Bank transfer orders shall be signed by the official(s) authorized to operate the bank account. A copy of the bank transfer order shall be attached with the Payment Vouchers.

5.5.6. Bank Reconciliation

The Finance officer must reconcile the cashbook with the bank statement at the end of every month and the reconciliation shall be securely attached to the bank statement. Any discrepancy shall be identified to include the following, if any:

(a) Receipts recorded in Cash book but not yet credited by bank;

(b) Cheques/bank transfers issued and not yet debited by bank;


(c) Item debited/credited by Bank but not yet recorded in Cash Book.

(d) Errors by the Bank or in recording entries of the Cash Book.

5.5.7. Bank reconciliation shall be prepared in line with the schedule, formats and standards set as per Government financial rules and regulations. Cashbooks are maintained to provide a chronological record of all funds that are deposited into and disbursed from the programme/project bank account. The Cashbook shall be updated, ‘Closed’ and reconciled with the bank statements on a regular basis, at least monthly.

The three monthly reconciliation statements prepared during the quarter must be filed together with the Financial Report.

5.6. Financial Reporting

5.6.1. Quarterly Programme/Project Financial Report

(i) The Federal IP (Sector Institution) will submit quarterly financial report to MoFED and ExCom for activities to be implemented by them at Federal level within 15 days after the end of the quarter.

(ii) BoFED will submit quarterly financial report to MoFED and ExCom, with copy to sector ministries, using FACE format, for activities to be implemented in their respective region (regional and woreda level) within 15 days after the end of the quarter.

(iii) Sector Bureaus will settle their account at BoFED every month with the original documents.

(iv) WOFED shall submit program/project financial progress report to BOFED regarding all sectors within 10 days after the end of the quarter.

(v) Each financial report principally represents physical performance and expenditures pertaining to corresponding advance with any ending balance re-valued at the current exchange rate.

(vi) United Nations agencies acting as Responsible Party issue quarterly expenditure statements in accordance with the letter of agreement entered into between the IP and the


United Nations agency. The statements reflect all expenditures by component/budget line and are submitted to the IP through the ExCom Resident Representatives within 15 days after the end of each quarter.

(vii) At the beginning and end of every quarter, the ExCom Country Offices will decide on the exchange rate to be used for advance of funds in consultation with federal IPs and BoFED. When expenditures are made in local currency during the quarter, these are converted into US dollars at the United Nations rate at the date of the advance (usually the exchange rate in effect at the beginning of the quarter). Any outstanding advances at the end of the quarter are re-valued at the end-of-quarter rate and the foreign exchange gain/loss is calculated.

(viii) All IP at federal level, & the BoFED Regional Bureaus, and WOFED in regions must close their account and prepare year end financial statements which includes

a. Trial balance

b. Income & expenditure statement

c. Balance sheet

d. Cash flow statement

e. Certified inventory report for non-expendable equipment

(ix) All IP at federal level & all BoFEDs shall submit consolidated report prepared as per the government reporting format to MOFED at the end of each fiscal year.


5.7. Financial Accountability

5.7.1. The IP at Federal level and Sector Bureaus, BoFED/WoFED in regions are responsible for the management of all ExCom funds allocated to the ExCom assisted programme/project under their authority.

5.7.2. The Federal IP Sector Bureaus and BoFED/WoFED shall set-up adequate internal control procedures commensurate with generally accepted accounting practices for the purpose of producing accurate, up-to-date and reliable financial information and reports.

5.7.3. The Internal audit established in each Federal IP, Sector Bureaus and BoFED/WoFED shall keep and provide a complete and continuous check of the accounts, records, expenditure, stores, inventories, equipment, vehicles and other assets. The Internal Audit shall review the accounts on quarterly basis and submit a written report on the results of the checks carried out.

5.8. Closing of Bank Account at the end of Country Program Period

Soon after the completion of the programme/project operations, the bank accounts shall be closed. Any unutilised cash balance held by all Federal IP, Sector Bureaus BoFED/WoFED should be transferred to the ExComs before the closing of these bank accounts. Accordingly, MoFED at Federal level and BoFED in regions will ensure the closure of accounts opened for the program implementation.


6. AUDIT

6.1. Audit plan and objectives6.1.1. All ExCom supported programmes and projects must be audited

once in their lifetime, at a minimum. MoFED, in consultation with the ExCom country offices, draws up an annual audit plan by November. The audit plan lists the programmes and projects scheduled to be audited on that given year, considering whether the programme or project has previously been audited, the volume of funds, number of programmes and projects, workload, among other things.

6.1.2. The annual audit plan will be established based on ExCom agencies requirements.

6.1.3. The Office of General Auditor will assign the auditors for all programs.

6.1.4. The objective of the audit is to provide the Government and the ExCom authorities with the assurance that ExCom resources are being managed in accordance with:

(i) The financial regulations, rules, practices and procedures prescribed for the programme or project ;

(ii) The CPAP and AWP, including activities, management and implementation arrangements, monitoring, evaluation, and reporting provisions ;

(iii) The requirements for execution in the areas of management, administration and finance.

6.1.5. Scope of Audit: The audit of ExCom supported programmes or projects must cover, but may not necessarily be limited to, the following:

(i) Assessment of the rate of delivery(ii) Financial accounting, monitoring and reporting (iii) Management systems for recording, documenting

and reporting on resources utilization (iv) Equipment use and management, and(v) Management structure, including the adequacy of

appropriate internal control and record-keeping mechanisms.

6.1.6. The audit must confirm and certify that:(i) Disbursements are made in accordance with the

activities and budgets of the programme support or project document;

(ii) Disbursements are supported by adequate documentation;


(iii) The financial reports are fairly and accurately presented;

(iv) an appropriate management structure, internal controls and record-keeping systems are maintained;

(v) IP and the ExCom country offices have undertaken and have prepared reports for monitoring and evaluation of the substantive activities and of the management systems of the programme/project; and

(vi) The procurement, use, control and disposal of non-expendable equipment are in accordance with the Government’s or ExCom regulations.

6.1.7. The audit is normally carried out at the level where the original documentation is held. It shall cover the funds channelled through the government by way of advances of funds.

6.1.8. In addition to audits scheduled in consultation with MoFED, UN ExCom agencies reserve the rights for periodic site reviews and spot checks of the financial records of Implementing partners by the agency or its representatives; programmatic monitoring visits and special as well as scheduled audits.

6.2 Assignment of Auditors

6.2.1 MoFED requests the Auditor General to identify and appoint the auditing body, to ensure that the audit is performed in accordance with generally accepted auditing standards. The cost of the Audit will be covered from programme or project funds. Adequate financial provision for the audit must be included in the programme or project budget.

6.2.2As required, annually 3-4 auditors will be assigned, by program, for all UN EXCOM assisted projects. Each Federal IP and BoFED will prepare consolidated program annual financial reports for their respective activities and submit to the auditors, which will be the basis of audit. The auditors will have the duty of compiling/consolidating program report and statement and finally issue one program audit report. This requires the auditors to visit each program regions to get full information on programs.

6.3 The Audit Process

6.3.1 The audit must be conducted in conformity with generally accepted common auditing standards and in accordance with the professional


judgment of the auditor. The standards applied are normally referred to in the audit report.

6.3.2 Legally recognized auditor of the Government normally conducts the audit. However, in instances when such arrangements are not feasible, the audit may be carried out by a commercial auditor appointed by the Auditor General.

6.3.3 MoFED and the ExCom agencies will organize briefings with the auditors before the audit exercise and upon the completion of the audit. The briefings must occur even if the auditors have prior experience of auditing ExCom programmes or projects.

6.3.4 The findings of the draft audit report must be discussed in detail with the IP, including appropriate programme or project management staff, the government coordinating authority and management of the ExCom agency. Their comments are expected to be included in the final report.

6.3.5 TOR on audit: This provides guidance on the audit process, such as the audit plan, standard terms of reference and contract for the auditor, standard outline audit report, as well as issues and documentation to assist the audit.

6.4 Follow-up

6.4.1 The audit report is an integral part of the monitoring and evaluation process. Its contents are taken into account in the annual progress review of programmes or projects, in programme or project evaluation and in the annual and mid term country review.

6.4.2 The audit report shall be shared/ discussed with all concerned bodies including regions and follow-up actions shall be prepared and implemented by the responsible body.

6.4.3 BoFEDs, ExCom and MoFED are responsible for following up with the IP and on the implementation of the recommendations made in the audit report that pertain to them.

7 MONITORING AND EVALUATION AND REPORTING

7.1. Purposes of Monitoring and Evaluation

Monitoring and evaluation is a management tool that helps to judge if work was going on in the right direction, whether progress and suc-cess could be claimed, and how future efforts might be improved. It assists an organization to extract, from past and ongoing activities, relevant information that can subsequently be used as the basis for programmatic fine-tuning, reorientation and planning.

Monitoring and evaluation takes place at two distinct but closely con-nected levels. One level focuses on the outputs, which are the specific


products and services that emerge from processing inputs through program, project and other activities. The other level focuses on the outcomes of development efforts, which are the changes in develop-ment conditions that aim to be achieved through specific projects and programs.

Monitoring and evaluation that is results-based requires specific kinds of tools and processes such as work plans, project reports, field visits, stakeholders/review meetings on a periodic basis to support perform-ance measurement.

7.2. Principles of Monitoring and Evaluation

Monitoring and Evaluation, as management tools and processes, shall focus on outcomes results by ensuring better measurement of perfor-mance through a more systematic monitoring and reporting mecha-nism that foster a culture of learning, transparency and accountability based on the principles of Results-Based Management (RBM).

Monitoring and Evaluation will be undertaken in line with the UNDAF results matrix, UNDAF M&E plan aligned with the respective UN agency CPAP and Integrated Monitoring and Evaluation Plan (IMEP) and will be based on the principles of Result-Based Management (RBM). These processes will also be aligned with existing national and sectoral monitoring and evaluation processes and Serve as an input for the national and sectoral review processes.

Monitoring of the country program will be done through a five-year Integrated Monitoring and Evaluation Plan (IMEP) as the basis for result-based programming. This will be undertaken in line with the monitoring and evaluation system of PASDEP and UNDAF result matrixes and the respective UN agency Summary Results Matrixes in CPAP. Monitoring and evaluation activities are contained within the five-year Integrated Monitoring and Evaluation Plan (IMEP) of UNDAF and the Agency CPAPs annualized as AWPs and IMEPs and consist of: joint field visits with Government, respective UN agency and other UN partners; project progress and final reports; Sectoral and Annual Review Meetings; a Country Program Mid-Term Evaluation; and the Country Program Final Appraisal based on the principles of mutual accountability and RBM.The UN agencies and the Government through tracking and measuring performance will ascertain whether the programs/projects are meeting their objectives, enhancing the effectiveness of UN assistance by es-tablishing a link between past, present and future interventions and results.


The main objectives of the results-oriented monitoring and evaluation include: (i) to ensure informed decision-making; (ii) to support sub-stantive accountability; (iii) transfer of skills, national and sub-national M&E systems development ; (iv) to reinforce good practices; (v) for problem solving and positive contribution; and (vi) to build capacity in M & E functions.

Monitoring, reporting and evaluation of UN assisted programs/projects is the joint responsibility of the Government represented by MoFED, the UN agencies, the Implementing Partners, and the regional bu-reaus, including the targeted woredas.

United Nations agencies contribute to and assist with the monitoring, reporting and evaluation process, as mutually agreed to by the government coordinating authority, Implementing Partners and respective UN agency at the time of programme or project formulation and thereafter through the process of reviews.

MOFED in consultation with the UN ExCom agencies will organize the annual UNDAF and Country Programme reviews on outputs and outcomes. BoFED in consultation with sectoral IPs and respective UN agencies will organize biannual review meeting. BoFED also hold monthly meeting with all concerned program sector bureaus to discuss on the progress and issues related to programs. Periodic onsite reviews will be conducted jointly by Federal IP, MoFED and the UN agencies using the UNDAF framework complemented the sectoral approach.

7.3 Monitoring

In carrying out the monitoring activity, both performance and outcome monitoring will be undertaken. Implementation monitoring will be carried out at the programme/project level and shall be geared towards the measurement of the progress of project/programme activities and the delivery of outputs against established schedules and indicators of progress on key performance indicators (KPIs).

The requirements for effective monitoring are baseline data, indicators of performance and results, and mechanisms or procedures for data collection that include such planned actions as field visits, stakeholder


meetings , reviews and systematic reporting, partnership and implementation strategies based on principles of transparency, accountability.

Roles of different partners at different levels for monitoring are indicated below:

Federal Implementing Partners (FIPs): Implementing Partners at federal level hold primary responsibility for close supervision, follow-up, and monitor and evaluate the progress of programs/projects that they are in charge of. More specifically, they:

Shall prepare an M & E Plan in tandem with the UNDAF and vari-ous UN-Agency CPAPs,

Carry out monitoring activities on a quarterly basis, Conduct field visit on a quarterly basis,

BOFED: At regional level, BOFED, hold primary coordination responsi-bility for planning, monitoring, supervision, follow-up, and evaluation of programs/projects in the region. More specifically, they shall as part of the joint AWP:

Prepare an M & E Plan for programs/projects implemented in the region,

Organize monitoring activities on a quarterly basis, Conduct field visit on a quarterly basis, Ensure the implementation of recommendations arising from

the monitoring, reviews and evaluations.

Sector Bureaus/Woreda Offices and Other Responsible Parties: are responsible for the progress/performance of programs/projects on a day-to-day basis to:

steer the program/project towards the planned results (outputs, outcomes and impact) based on accurate, timely and appropri-ate information,

identify strength, weaknesses, and bottlenecks/problems and proffer solutions,

take corrective actions if there are deviations from the planned course,

Share, in a timely manner, periodic verifiable reports with BoFED. BoFED then will share the report to MoFED, concerned sectoral institutions and UN ExComs as required for accountabil-ity, records and release of subsequent resource inputs.

Use the monitoring information for learning, communication and reporting to relevant authorities, and further enhancing the pro-gram/project performance.


MOFED: MoFED coordinates nationally the overall monitoring (perfor-mance, outcome, physical and financial) of the UN assisted programs/projects in collaboration with the UN and the Implementing Partners. The joint program-monitoring visits, audits, reviews and evaluation shall focus on:

Assessing to what extent the programs/strategies are instrumental to realize the planned results (outcome, impacts).

The interaction of program/project with target groups to obtain their views on how the program or project is affecting them (directly or indirectly, positively or negatively) and their proposed solutions to perceived problems.

Identification and assessment of gaps in policy, strategies and partnership for the realization of the commitments.

Assessing to what extent the programs/projects approaches and resources are harmonized and coordinated with that of other donors and programs of the government at federal and regional levels.

Identification and documentation of best/good experiences that should be further researched, piloted or disseminated to other areas.

Ensuring the implementation of recommendations and follow up actins from monitoring visits and reviews.

The following instruments, among others, shall be used for program monitoring at the coordination level.

Baseline data and indicators/targets identified in the CPAP will be the basis for comparing progress towards outcome.

Joint monitoring visit shall be undertaken at least once a year to each UN assisted program or project. The monitoring team at the Co-ordination level shall be composed of relevant staff from MoFED, UN, IP representative and respective sector bureau in the concerned region and any other technical staff as may be required. A field visit report shall be prepared for all field visits.

Review Meetings

The Program/Project Review Meeting shall, in consultation with the UN-ExCom agencies, be organized by MoFED at the national level, BoFEDs at the regional levels (with woreda participation) and at sectoral levels by the federal lead agencies as core element of the Program/Project monitoring mechanism, which should be synchronized to feed into each


other in a sequential manner with the participation of all stakeholders. The Program/Project Management shall prepare and circulate the necessary reports (as per format/content stated in under the reporting segment of this manual as well as in annex XI below) on the progress of the programme/project, which shall form the basis for discussion/analysis. The review meeting shall be carried out at following levels with the first two feeding into Sectoral Annual Review Meeting:

Regional Semi-annual Review Meeting

Annual Country Program Review Meeting

Sectoral Annual Review Meeting (National)

Mid-Term Review Meeting

End Programme/ Final Year Review

Regional Semi-annual Review Meeting: BOFED shall be in charge of organising and facilitating biannual review meetings at the regional level. The Regional review meetings will bring together the implementers of the UN assisted programs/projects from the region bureaus, zones, woredas and other RPs. Federal sectoral institutions , MoFED and respective UN-ExComs can be invited to such meeting as deemed necessary.

Annual UNDAF and CP Review Meeting MoFED shall be responsible for organizing annual review meeting on UNDAF and Country Program performance.

The annual program report (APR) that would be prepared by the IPs based on UNDAF thematic areas serves as the basis for assessing the performance of UNDAF and Country Program and projects in terms of their contribution to intended outcomes through outputs and partnership work. The discussion will be based, among others, on annual work plan, progress reports, outcome monitoring and the audit reports.

An UNDAF and CP APR Agenda shall be jointly prepared by UN and MoFED will form the basis for discussions for the Annual Review Meeting.

The APR must be flexible but must cover essential elements on results, namely progress towards outcome, outputs produced and relevant efforts on partnership and soft assistance as in the reporting format (annex XI below).

The objective of the annual review meetings is to involve the major stakeholders in addressing issues that pertain to the UNDAF and Country Program, thereby creating a sense of ownership.


Depending on the issues and problems to be addressed, these meetings may be conducted at different levels and venues with varying frequency.

The Annual Review Meeting report shall be prepared jointly by MoFED and the UN Resident Coordinators Office with support by the UN-ExCom agencies and circulated by MoFED to all participants and stakeholders. Comments if any on the draft shall be conveyed to MoFED within three weeks. The Report shall be treated as final after that.

7.4 Evaluation

Evaluations will be done on selective basis to systematically and objectively assess progress towards and achievement of identified outcome(s) as well as to fill knowledge gaps necessary to guide overall programme monitoring and attainment of outcome results based on articulate IMEP derived from UNDAF, CPAPs and AWPs. Programme/project evaluations, at the project/programme level, will assess the relevance, efficiency, effectiveness, impact and sustainability of activities undertaken. Outcome evaluations will cover a set of related programmes, projects and strategies that are intended to bring about certain identified outcome(s). The evaluation exercise will thus be concerned with achievements/results rather than with input delivery.

Outcome evaluation will extract lessons learned, findings and recommendations by assessing progress towards the identified outcome, factors contributing to the outcome (substantive influences), consequences (positive and negative), key UN contributions (output, including those produced through ‘soft’ assistance) to outcomes, and partnership strategy.

Two types of evaluation will be undertaken during the program period mid-term evaluation and final program evaluation. The mid-term evaluation will be undertaken at the mid of the country program period, while the final evaluation will be carried out at the end of the program period. In carrying out both evaluations:

The Government (MoFED) bears primary responsibility for evaluation of the country programme. UN in collaboration with MoFED will select the outcome(s) for evaluation and prepare an evaluation plan and the respective Country Office will submit the evaluation plan to the Evaluation Office at respective UN Headquarters for approval.


Evaluations intended primarily to generate knowledge and provide evidence to guide the achievement and monitoring of the outcome/ output results of the CPs shall be undertaken through joint workplanning to conform with established standards and norms including the United Nations Evaluation Group (UNEG) and shall foster partnership with national knowledge institutions, universities and research centers including professional organizations to ensure independence, utility focus/value, capacity building and contribution to local and global knowledge generation.

UN agencies, as development partners of Government, shall provide assistance in developing their capacity to fulfil their monitoring and evaluation responsibilities.

The IP bears the primary responsibility for ensuring that recommendations are implemented. It must duly inform MOFED and the UN of the implementation status of major recommendations, i.e., those that are crucial to the success of the programme/project.

Tracking the implementation status of major recommendations will be undertaken through the annual reporting required for all UN assisted programmes/projects and the annual reviews.

Reporting

Report should assess the relevance and performance of programmes/ projects, identify opportunities, early signs of potential problems or success and based on such an assessment, ascertain progress towards outcomes as reflected in UNDAF and CPAPs, and suggest practical recommendations on how to resolve problems or optimise initial gains. The report should therefore contain information on:

Qualitative and quantitative progress of physical implementation of the program/project, i.e., actual progress compared to the planned;

Activities carried out as per the time and resources schedule; Budget disbursed and used compared to the target for the

reporting period; Possible difficulties or delays and remedial action; Attitudes of target groups, participation and suggestions they

forwarded; Relationship with the target groups and the project environment,

and activities foreseen for the next reporting period; Analysis of situation and progress towards outcomes, based on

comparison with baseline data; and


The implications of relation/partnership with development partners and the contribution of soft-assistance in terms of policy advocacy dialogue, and co-ordination

The format in annex XI shall be used and attached to all reports and shared with MoFED/ BoFEDs, Federal IPs and respective UN agencies.

The following channels will be followed in reporting:

Woreda Sector Office (WSO) will prepare submit narrative report to Regional Sector Bureau. All reports will be prepared as per the report formats attached with this guideline (annex XI).

Regional Sector Bureau (RSB) will review and compile reports submitted by the Woreda Sector Offices, other IAs at regional level and performance report of the bureau and submit combined sector performance report to BOFED, on a quarterly basis. The reports should be submitted within 7 to 10 days after completion of the quarter.

Combined Quarterly Financial and Activity Report

All Federal IP will prepare Financial and Activity Report for activities to be implemented at Federal on a quarterly basis, within 15 days after the end of the quarter and forward to respective UN agencies and MoFED along with the next quarter fund request /FACE format.

All BoFEDs will prepare both Financial and Activity report for activities to be implemented in regions on quarterly basis, within 15 days after the end of the quarter and forward to respective UN agencies, MoFED and Sector ministries.

Sector Bureaus will prepare Financial and Activity report of the Sector and submit to BoFED within 10 days after the end of the quarter.

Sector Ministries (Federal IPs) will compile quarterly performance reports received from BoFED, other IAs at federal level and activities of the ministry. Sector ministries will submit a complete biannual report of the sector to MOFED and respective UN Agency.

Reporting Format

All reports shall be based on the RBM principles and, consist of the following minimum components and standards such that programme / project performance relative to planned output and outcome results (as in UNDAF


and CPAPs) are measurably and verifiably reported and documented. Sample revised format in annex XI below.



Woreda Cabinet

Federal Sector Ministry

Regional Sector Bureau

UN Agencies

Ministry of Finance and Economic Development

(Multilateral Cooperation Dep't)

Regional Council

Woreda Sector Office Woreda Finance and Economic Development Office

(WOFED)

Bureau of Finance and Economic Development

(BoFED)

Note:

Flow of AWP preparation process

Channel of Fund release

Flow of financial reporting

Flow of physical (activity) reporting

Notification requirement for AWP

Flow of combined physical (activity) and financial reporting

Beneficiaries

Beneficiaries

Payment for works, goods & services

Beneficiaries

Beneficiaries

ANNEXESI. STANDARD LETTER OF AGREEMENT BETWEEN THE IMPLEMENTING PARTNER AND A GOVERNMENT ORGANIZATION SERVING AS Responsible Party

1. Reference is made to consultations between officials of the [Name of Implementing Partner] hereinafter referred to as “Implementing Partner”, and officials of [Name of Responsible Party] hereinafter referred to as “Responsible Party” with respect to the participation of the implementation of the EXCOM assistance to the [Programme/Project Number and Title executed by [Name of Implementing Partner]. The Programme Management Office (PMO) established within the [Name of Implementing Partner] and headed by a National Programme Coordinator shall represent the latter for the purpose of such execution.

2. In accordance with the Programme /Project Document (PD), and with the following terms and conditions, we confirm our acceptance of the services to be provided by the Responsible Party towards the implementation of this Programme. Close consultations will be held between the Responsible Party and the Implementing Partner on all aspects of the services to be rendered as described in Attachment 1: Description of services of this letter of agreement.

3. The Responsible Party shall provide the services and facilities as specifically described in attachment 1, description of services, of the letter of agreement and in accordance with the terms of reference included therein.

4. The Implementing Partner shall retain overall responsibility for the implementation of EXCOMs assistance to the Programme through its designated National Programme Coordinator (NPC).

5. The personnel assigned by the Responsible Party to the programme and under contract with the Responsible Party shall work under the general guidance of the NPC. The supervisory arrangements shall be determined in mutual consultation and described in the relevant terms of reference of the personnel. These personnel shall remain accountable to the Responsible Party for the manner in which assigned functions are discharged.

6. In the event of disagreement between the NPC and the programme personnel of the Responsible Party, the matter under dispute shall be referred by the NPC to the Responsible Party for the purpose of finding a satisfactory solution. In the interim, the decisions of the NPC shall prevail.

7. Upon signature of this letter of agreement and pursuant to the programme budget of the PD and relevant output budgets and updated work plan, the Implementing Partner agrees to the Responsible Party’s requesting quarterly advances of funds from EXCOMs through the PMO and incurring expenditure as per the work plan agreed upon within the budget limits of the Responsible Party as shown in attachment 2.

8. The Responsible Party is accountable to the implementing partner for the quality and timeliness of programme inputs assigned to it for implementation under attachment 1, for carrying out programme activities entrusted to it; for their optimal contribution to production of the related outputs; and for the appropriate use of resources allocated to it.

9. Financial Report shall be submitted to the PMO within 15 days after the end of the calendar quarter. The PMS will include the reported expenditure in its Financial Report (FR) and submit it to MOFeD and the EXCOMs timely.

10. The Responsible Party shall submit to the PMO all the necessary progress reports relating to the programme activities that will enable the PMO and the Implementing Partner to fulfill their obligations to submit periodic progress and substantive reports to EXCOMs.


11. The Responsible Party shall provide the implementing partner with a detailed annual inventory report of all non-expendable equipment purchased for the Responsible Party under the programme. The report shall be submitted within 30 days following 31 December, and shall be included by the implementing partner in the main inventory for the overall programme.

12. The Responsible Party shall submit candidates and obtain clearance of the Implementing Partner for the personnel to be recruited on contract to the programme.

13. Any changes to the PD that would affect the work being performed by the Responsible Party in accordance with attachment 1 shall be recommended only after consultation with the Responsible Party.

14. Any amendments to these arrangements shall be effected by mutual agreement through an appropriate supplementary letter of agreement.

15. The arrangements described in this agreement will remain in effect until the end of the programme, or the completion of activities of the Responsible Party according to Attachment 2, or until terminated in writing by either party. The schedule of payments specified in Attachment 2 remains in effect based on continued performance by the Responsible Party unless EXCOMs receive written indication to the contrary by the Implementing Partner.

16. Undertake the following closure actions in consultation with the Implementing Partner upon completion of the programme:-

- List non-completed activities (if any)

- Update/prepare the following by location

Unutilized advances

Obligations

Inventory of equipment including purchase prices

List of equipment ordered but not received including those in customs warehouses

Prepare terminal report

Prepare programme final Financial Report

Refund outstanding advances remaining on the date of completion

Any other closure activity as requested by the Implementing Partner.

17. Take audits follow-up actions and informs the Implementing Partner.

18. For any matters not specifically covered by this agreement, the appropriate provisions of the PD and revisions thereof and the appropriate provisions of the financial regulations and rules of NEX, mutatis mutandis, shall apply.

19. All further correspondence regarding the implementation of this agreement, other than signed letters of agreement or amendments thereto should be addressed to the NPC of the programme with copy to EXCOMs.

20. The Implementing Partner through the PMO and the Responsible Party shall keep the EXCOM fully informed of all actions undertaken by them in carrying out this agreement.


Signed on Behalf of:

The Implementing Partner

(Signature, Name & Title) Date

The Responsible Party

(Signature, Name & Title) Date

Endorsed by EXCOM ____________________________________ ______________

(Signature, Name & Title) Date:


II.II. SAMPLE SERVICE CONTRACT WITH PROGRAMME/ PROJECTSAMPLE SERVICE CONTRACT WITH PROGRAMME/ PROJECT SUPPORT STAFFSUPPORT STAFF

PROGRAMME/PROJECT _________________________ ________________________________

SC. No. _________

MEMORANDUM OF CONTRACT made this on [ Date] between The [Name of Employer] (hereinafter referred to as The Government) and [Name of employee] (hereinafter referred to as the subscriber) whose address is Wereda [ ] , Kebele [ ] , House No. [ ] , P.O.Box [ ] , Addis Ababa, Telephone [ ] .

WHEREAS, The Government desires to engage the services of the subscriber in the context of the Programme and on the terms and conditions hereinafter set forth, and

WHEREAS the subscriber is ready and willing to accept this engagement of service with the Government on the said terms and conditions.

NOW, THEREFORE, the parties hereto agree as follows:

I. TERMS OF REFERENCE

(a) The subscriber will be assigned as the [Job Title] to Programme/Project [ ] as per the attached Terms of Reference which form an integral part of this agreement.

Subject to the agreement of both parties, these terms of reference as well as the terms and conditions of service may be modified from time to time, as required in the interest of the programme/project.

(b) The subscriber will work under the direction of and will report to the Government through the [Organization/Department].

II. DURATION OF CONTRACT

The duration of this contract is for a period of [ ] with an option of extension if the two parties agree. It will come into effect on the [Date] and expires on the [ Date ] , subject to the provision in Article VII below.

III. REMUNERATION

As full consideration for the services performed by the subscriber under the terms of this contract, The Government shall pay a salary of Birr [ ] gross per month worked payable in local currency as per the following schedule at end of each month. Last payment will be made upon certification work satisfactorily performed, submission and acceptance of final report.

The Government will pay daily Subsistence Allowance for programme-related official travel to the subscriber on the basis of rates established for Nationally executed programmes/projects.

IV. LEAVE PROVISIONS, HOLIDAYS AND HOURS OF WORK

Upon commencing employment under a contract of more than six months; or upon completion of more than six months of consecutive service from the seventh month, the subscriber will be accorded the annual and sick leave provisions applicable to government civil servants in the country. All annual leave must be taken during the duration


of the contract. Annual leave will not be commuted to cash upon separation. Working hours and holidays shall be those applying to the Government to which the subscriber is assigned.

V. STATUS OF THE SUBSCRIBER

The subscriber shall not be considered in any respect as being a staff member of The Government.

VI. RIGHTS AND OBLIGATIONS OF THE SUBSCRIBER

The rights and obligations of the subscriber are strictly limited to the terms and conditions of this contract. Accordingly, the subscriber shall not be entitled to any benefit, payment subsidy, compensation or pension from The Government, except as expressly provided in the contract.

The subscriber will not be exempt from taxation by virtue of this contract and is solely responsible for taxes levied on the monies received under this contract.

VII. RESCISSION

Either party may rescind the contract at any time by giving the other party 60 days' notice in writing of its intention to do so. Pro rata compensation may be paid in lieu of notice.

Should it be necessary for the contract to be foreshortened by The Government, the subscriber shall receive reasonable compensation; this will not be less than one week's remuneration of each unexpired month of the contract.

Should dismissal for improper conduct be deemed necessary, the contract may be rescinded with immediate effect upon written notice; no compensation will be payable in such cases.

The Government will terminate this contract with immediate effect, if, as a result of force major, including prolonged illness or incapacitation preventing the subscriber from carrying out his normal duties.

VIII. COMPENSATION FOR SERVICE-INCURRED DEATH, INJURY OR ILLNESS

In the event of death or permanent disability attributable to the performance of services on behalf of The Government under the terms of the contract, the subscriber is given the responsibility to be covered through an Endowment Insurance with an Ethiopian Insurance Company, owing to the fact that the premium is included in the gross salary as stated in Article III above.

IX. DESIGNATION OF BENEFICIARY

The subscriber has designated [Name] whose address is Wereda [ ] , Kebele [ ] , House No. [ ] , P.O.Box [ ] , Addis Ababa, Telephone [ ] as his beneficiary for all amounts standing to the subscriber's credit under the terms of the contract in the event of the subscriber's death.

X. TITLE RIGHTS

The title rights, copyrights and all other rights of whatsoever nature in any material produced under the provisions of this contract shall be vested exclusively in The Government.

XI. UNPUBLISHED INFORMATION

The subscriber shall not communicate to any person, government, or other entity external to The Government any unpublished information made known to the subscriber by reason of performing his or her duties under the terms of this contract, except as required by the assignment or upon authorization by The Government. This provision shall survive the expiration or rescission of the contract.


XII. DISCLOSURE

The subscriber shall disclose to the representative of The Government any business or professional employment or activity in which he or she may be engaged prior to or at any time in the course of the present contract. These activities shall not be incompatible with the performance of the services outlined under Article I.

XIII. STANDARDS OF CONDUCT

The subscriber shall conduct himself/herself at all times with the fullest regard for the purposes and principles of The Government and its Agencies, and in a manner befitting his/her relationship with The Government under the contract. The subscriber shall not engage in any activity that is incompatible with those purposes and principles or the proper discharge of his/her duties with the project. He/she shall avoid any action and in particular any kind of public pronouncement, which may adversely reflect on that relationship or on the integrity, independence and impartiality which, are required by that relationship. While the subscriber is not expected to give up any national sentiments or political and religious convictions, he/she shall at all times bear in mind the reserve and tact required by reason of his/her relationship with The Government.

The subscriber shall not accept any favour, gift or remuneration from any source external to The Government without first obtaining its approval.

XIV. SETTLEMENT OF DISPUTES

Any claim or dispute relating to the interpretation or the execution of the present contract, which cannot be settled amicably, shall be settled by binding arbitration. The arbitration panel shall be composed of a Government official nominated by the subscriber, a representative of The Government and a chairperson agreed by the two of them.

1.1 REGULATIONS

This contract is prepared in English in three original copies, one for The Government, one for the subscriber and one for EXCOM. English will be the only language to be used in the interpretation of the contract.

By _____________________________ Date: ______________ On behalf of the Government

By _____________________________ Date: ______________ Subscriber


III. ANNUAL WORK PLAN

EXPECTED OUTPUTS and indicators

including annual targets

PLANNED ACTIVITIES List all activities including M & E to be undertaken during the year towards stated CP

outputs

TIME FRAME RESPONSIBLE PARTY

PLANNED BUDGET

Year 1 Year 2 Contribution of EXCOM

Source of Fund

Budget Description

Amount

Q1 Q2 Q3 Q4 Q1 Q2


IV. Funding Authorization and Certificate of Expenditure (FACE) UN Agency: Date:

Type of Request:

Country: Direct Cash Transfer (DCT)

Programme Code & Title:

Project Code & Title: . Reimbursement

Responsible Officer (s):

Implementing Partner: Direct Payment

REPORTING REQUESTS/AUTHORIZATIONS

Currency: USD

Activity Description from AWP with DurationCoding for UNDP, UNEPA and WEP

Authorised Amount

DD-MM-YYActual ProjectExpenditure

Expenditures Accepted by

Agency Balance

New Request Period & Amount April -

June 2007MM.MM.YYYY

Authorised Amount

OutstandingAuthorised

AmountDD-MM-YY

Account Fund A B C D=A-C E F G=D+F

CERTIFICATION

The undersigned authorized officer of the above-mentioned implementing institution hereby certifies that:

The funding request shown above represents estimated expenditures as per AWP and itemized cost estimates attached.

The Actual expenditures for the period stated herein has been disbursed in accordance with the AWP and request with itemized cost estimates. The detailed accounting documents for these expenditures can be made available for examination, when required for the period of five years from the date of the provision of funds.

Date Submitted: Name: Title:

Signature:_________________Stamp:_______________

NOTES: Shaded areas to be completed by the UN Agency and

For Agency Use Only Account Changes Liquidation informationFor UNDP/UNFPA USE ONLY

FOR ALL AGENCY Cash Transfer reference: DCT Reference:New Funding Release

Approved by:CRQ ref. No., Voucher ref.no

CRQ ref. No., Liquidation ref. No.

GL Codes: Training:

Training

Travel DCT Amount Travel:

Name: . Meeting & Conferences Less:

Title: . Other Cash TransfersLiquidationAmount

Date: . Total Balance Total


V. V. SAMPLE CONTRACT WITH CONSULTANTSSAMPLE CONTRACT WITH CONSULTANTS

Contract No. _____________ Date _________________________

MEMORANDUM OF CONTRACT made this on [Date] between The [Name of Employer] (hereinafter referred to as The Government) and [Name of employee] (hereinafter referred to as the subscriber) whose address is Wereda [ ] , Keble [ ] , House No. [ ], P.O.Box [ ] , Addis Ababa, Telephone [ ] .

WHEREAS the desires to engage the services of the subscriber on the terms and conditions hereinafter set forth andWHEREAS the subscriber is ready and willing to accept this engagement of service with the ____________ on the said terms and conditions,NOW, therefore, the parties hereto hereby agree as follows:

1. NATURE OF SERVICES – The subscriber shall perform the services according to the attached terms of reference, which forms a part of this contract.

2. DURATION OF AGREEMENT – This agreement shall commence on date, and shall expire on the satisfactory completion of the services described above, but not later than unless sooner terminated under the terms of this agreement. Either party may terminate this agreement at any time by giving the other party ____day’s notice in writing of its intention to do so.

In the event of this agreement being terminated prior to its due expiration date, the subscriber shall be compensated for the actual amount of work performed to the satisfaction of the __________ on a pro rata basis.

3. CONSIDERATION – As full consideration for the services performed by the subscriber under the terms of this agreement the ___________ shall pay the subscriber upon certification by the above – named department that the services have been satisfactorily performed the sum of: -

First payment of Birr ________ upon ____________Second payment of Birr______ upon ____________Third payment of Birr _______ upon ____________

4. STATUS OF THE SUBCRIBER – The subscriber shall be considered as having the legal status of an independent contractor. The subscriber shall not be considered in any respect as being a staff member of the United Nations.

5. RIGHTS AND OBLIGATIONS OF THE SUBSCRIBER – The rights and obligations of the subscriber are strictly limited to the terms and conditions of this agreement. Accordingly, the subscriber shall not be entitled to any benefits, payment, subsidy, compensation or entitlement, except as expressly provided in this agreement. The subscriber will not be exempted from taxation by virtue of this contract and is solely responsible for taxes levied on the monies received under this contract.

6. TITLE RIGHTS – The title rights, copyright rights, and all other rights of whatsoever nature in any material produced under the provisions of this agreement shall be vested exclusively in the _____________.

7. UNPUBLISHED INFORMATION – The subscriber shall not communicate to any person or other entity any unpublished information made known to him by the ________________in the course of performing his obligations under the terms of this agreement except upon authorization by the United Nations.

9. OTHER REMARKSIN WITNESS WHEREOF, the parties hereto have executed this agreement

(Approving Officer) (Subscriber)

By:

Place Date Place Date

Allotment Account No. Programme/Project Symbol: M.O.D. No. Nationality


VI. CashVI. Cash Book (Bank Receipt & Disbursement Ledger) Book (Bank Receipt & Disbursement Ledger)Implementing Partner/RP_______________________________________

Programme/ Project Title_______________________________________

Programme/ Project Number____________________________________

A/C No____________________________________________________

___________________________________Fiscal Year______________

Date Description Cheque No Target Budget Line

Receipt Dr

Disbursement Cr

Balance

Month Total


VII. PaymentVII. Payment Voucher VoucherDay

Payee_________________________________

Address_______________________________

Amount in Words:

Purpose of Payment:

_______________________________________________________________________________________

Payment by [ ] Cheque [ ] Cash

Cheque No.:

Prepared by_________________ Authorized by______________

Signature___________________ Signature__________________

Date_______________________ Date______________________

Paid by_____________________ Received by________________

Signature___________________ Signature__________________

For Accounting Purpose

Target Budget Line Dr Cr


VIII. SubsidiaryVIII. Subsidiary Ledger Ledger Program/Project Title______________________ Target No.__________

Implementing Partner/RP________ _________ A/C Title___________

A/C No._______________________________ B/C No.____________

Tar

get

No

Ou

tpu

t N

o. Description

Bu

dget

Adv

ance

Dir

ect

Pay

men

ts

Rem

aini

ng

Bu

dget

(E

XC

OM

)

Exp

end

itu

re

Ou

tsta

ndin

g A

dvan

ce o

f F

und

Rem

aini

ng

Bu

dget

1 2 3 4=1-(2+3) 5 6=2-5 7=1-(3+5)


IX. ReceiptsIX. Receipts & Disbursement Registration Book (control ledger) & Disbursement Registration Book (control ledger)Implementing Partner/RP _____________________________________

Programme/ Project Title_______________________________________

Programme/ Project Number____________________________________

Accounting Period Month ____________________Year_____________

S/n Date Description Ref. No

Receipt No Cheque No

A/C No Target No Dr Cr Balance


X. X. Bank ReconciliationBank ReconciliationProject/Programme title________________________

Day Month Year A/C No________________

Balance Per book xx

Add – Cash collected by bank not recorded xx

Recording Error xx

xx

xx

Less: Bank Charges not recorded xx

Recording error xx

xx

Adjusted Balance xxx

Balance per bank statement xx

Add Deposit in transit xx

Bank recording error xx

xx

Less: Out Standing Cheque

Date Cheque No Amount xx

Bank recording error xx

xx

Adjusted Balance xxx


XI. Quarterly Programme/ Project Progress ReportProgramme/ Project -------------Reporting Period/ Quarter --------------------

No Planned Activities

Physical Target Issues Action to be TakenAchieved Not Performed


XII. Supplies and Equipment Request FormProgramme/Project________________ Contact Person _________

Implementing Partner _____________ Address ________________Telephone & Fax Number _________

Item No.

Item Description & Specification Unit Quantity Estimated Cost ( In ------) RemarkUnit Total


XIII. XIII. ANNUAL REPORT OF NON-EXPENDABLE EquipmentANNUAL REPORT OF NON-EXPENDABLE Equipmentss

Reporting Period: Year ended 31st December 200__

Programme /Project Title __________________

Implementing Partner Responsible Party

S/rNo.

Description Identification Number

Manufacturer’sS/r No

Qty UnitCost USD

TotalCostUSDb

Source Location Remark

Local Int.

Certified by:Name _____________________Title _______________________Government Agency(Department) ________________


XIV. NONXIV. NON –EXPENDABLE PROPERTY LEDGER –EXPENDABLE PROPERTY LEDGER

Account Number: ____________________________ Programme/Project _______________

Account Name: _______________________________ Output _______________________

Implementing Partner Responsible Party

ACQUISITIONS TRANSFERS/DESPOSITIONS

DATE DESCRIPTION S.NO SOURCE COST INVEN. NO

LOCATION DATE EXPLANATION AMOUNT DESTINATION


XV. MODELXV. MODEL TERMS OF REFERENCE (ToR) TERMS OF REFERENCE (ToR)

Programme/Project Title: …………………………………………………………………………

Programme/Project No: …………………………………………………………………………

1. Post Title: ……………………………………………………………………………………….

2. Duration: …………………………………………………………………………………………

2. Duty Station: ……………………………………………………………………………………

3. Emoluments: ……………………………………………………………………………………

4. Duties and Responsibilities: ………………………………………………………………………………………………………………………………………………………………………

5. Qualification: ……………………………………………………………………………………

6. Experience: ………………………………………………………………………………………

7. Any other Relevant Requirement/Information: …………………………………………………………………………………………………

A Terms of Reference (ToR) is a contractual document against which contractors, consultants and experts have to operate. They are yardsticks against which the success of the assignment or mission will be measured. They form an attachment to the contract for consultants and contractors selected to undertake the mission or assignment.

The purpose of the ToR document is to:1. Provide the rationale for the activities that will be undertaken by an individual, team or private company

or an NGO; 2. Detail the activities required and outputs expected and the time scale over which they are to be

completed; and 3. Detail the professional requirements of the individual, team or firm.

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Education