SAIP Operational Manual Article II: Sub-Project Execution

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SAIP Operational Manual Article II: Sub-Project Execution SAIP OM: Application for an ESAP2 Grant Ethiopia Protection of Basic Services Social Accountability Program Grant Agreement [TF099878] SAIP Operational Manual Version April 2014 1 /234 Contents List of Abbreviations ______________________________________ 14 1. Introduction and Purpose of the Manual _____________________ 16 1.1 Protection of Basic Services Social Accountability Program (PBS-ESAP)17 1.1.1 Background _________________________________________________________ 17 1.1.2 Objectives of ESAP2 __________________________________________________ 18 1.1.3 ESAP2 Grant Scheme and Budget ________________________________________ 19 1.2 Social Accountability ___________________________________ 20 1.2.1 Social Accountability Tools _____________________________________________ 20 1.2.2 Participatory Budgeting (PB) ___________________________________________ 21 1.2.3 Public Expenditure Tracking (PET) _______________________________________ 21 1.2.4 Citizens’ Report Cards (CRC) ____________________________________________ 22 1.2.5 Community Score Card (CSC) ___________________________________________ 22 1.3 Sectors _____________________________________________ 22 1.3.1 Education ___________________________________________________________ 22 1.3.2 Health _____________________________________________________________ 23 1.3.3 Water and Sanitation _________________________________________________ 23 1.3.4 Agriculture __________________________________________________________ 23 1.3.5 Rural Roads _________________________________________________________ 24 2. Application for anESAP2 Grant ____________________________ 25 2.1 Eligibility ___________________________________________ 25 2.1.1 Eligibility of the Applicants: Who Can Apply? ______________________________ 25 2.1.2 Eligibility of Applications: What Do You Need to Address? ___________________ 25 2.1.3 Eligibility of Costs: What Can Be Covered? ________________________________ 26 2.2 Period of Grant Implementation ___________________________ 28 2.3 Application Submission _________________________________ 29 2.4 Request for Clarifications ________________________________ 30 2.5 Evaluation, Selection and Contracting of Applications ___________ 31 2.5.1 Evaluation of Eligibility and Administrative Criteria _________________________ 31 2 /234 2.5.2 Evaluation of the Quality of the Grant Application and Applicant ______________ 32 2.5.2.2 Quality of Application _____________________________________ 35 2.5.2.3 Logical Framework _______________________________________ 39 2.5.2.4 Budget _______________________________________________ 40 2.5.2.5 Higher Relevance _______________________________________ 40 2.5.3 Provisional Selection (Shortlisting) of the Applications ______________________ 42 2.5.3.1 Financial Capacity Assessment _______________________________ 42 2.5.4 Contracting _________________________________________________________ 43 2.5.4.1 Assessor’s Requirements and Contract Negotiation _________________ 43 2.5.4.2 Agreement and Method of Payment ____________________________ 44 2.5.4.3 Amendment of the Grant ___________________________________ 45 2.5.4.4 Suspension and Termination of the Grant _______________________ 45 3. Implementation of an ESAP2 Grant Project ___________________ 47 3.1 Roles and Responsibilities in Implementation _________________ 47 3.1.1 The Management Agency (MA) _________________________________________ 47 3.1.2 The Social Accountability Implementing Partner (SAIP) ______________________ 47 3.2 Capacity Development & Training Program ___________________ 48 3.3 Monitoring and Reporting _______________________________ 49 3.3.1 Quarterly Reporting __________________________________________________ 49 3.3.1.1 Narrative Reporting ______________________________________ 49 3.3.1.2 Financial Reporting ______________________________________ 49 3.3.1.3 The Audit Report _________________________________________ 50 3.3.2 Final Reporting and Closing ____________________________________________ 51 3.3.2.1 Final Narrative Reporting __________________________________ 51 3.3.2.2 Final Financial Reporting and Audit Report ______________________ 52 3.3.2.3 Close Out ______________________________________________ 53 3.3.3 Monitoring and Evaluation _____________________________________________ 53 3.3.3.1 M&E of Progress and Results ________________________________ 53 3.3.3.2 M&E of Financial Implementation _____________________________ 55 3.3.4 Collecting and Disseminating Good Practices ______________________________ 55 3.3.4.1 Collecting Good Practices during Project Implementation ____________ 56 3.3.4.2 Final Dissemination of Results and Lessons Learnt _________________ 56 4. Financial Requirements and Procurement ____________________ 57 4.1 General Accounting Principles ____________________________ 57 4.1.1 General Accounting Policies ____________________________________________ 57 3 /234 4.1.1.1 Consistency ____________________________________________ 57 4.1.1.2 Income________________________________________________ 57 4.1.1.3 Categories of Expenditures __________________________________ 57 4.1.1.4 Transparency ___________________________________________ 57 4.1.1.5 Materiality _____________________________________________ 58 4.1.1.6 Disclosure _____________________________________________ 58 4.1.2 Specific Accounting Policies ____________________________________________ 58 4.1.2.1 Financial/Accounting Year __________________________________ 58 4.1.2.2 Basis of Accounting _______________________________________ 58 4.1.2.3 The Accounting System ____________________________________ 58 4.1.2.4 Fixed Assets ____________________________________________ 58 4.1.2.5 Staffing Requirements and Division of Responsibilities ______________ 58 4.1.2.6 IT requirements _________________________________________ 59 4.1.2.7 Internal Controls_________________________________________ 59 4.1.2.8 Segregation of Duties ______________________________________ 59 4.1.2.9 Clear Chart of Account and Budget Code _______________________ 60 4.1.2.10 Cash Management ______________________________________ 60 4.1.2.11 Cheque Payment and Bank Account Management _________________ 60 4.1.2.12 Bank Reconciliation _______________________________________ 62 4.1.2.13 Advances ______________________________________________ 62 4.1.2.14 Budget and Expenditure Control ______________________________ 63 4.2Procurement from the ESAP2 Grant Budget ___________________ 63 5. FAQs ______________________________________________ 64 5.1 Grant Project Planning of Activities _________________________ 64 5.2 Grant Project Financial Planning and Management _____________ 64 5.3 Reimbursable and Eligible Costs ___________________________ 64 5.4 General Grant Project Reporting ___________________________ 67 5.4.1 Grant Project Quarterly Reporting _______________________________________ 68 5.4.2 Grant Project Final Reporting ___________________________________________ 70 5.4.3 Audit Reports _______________________________________________________ 71 Annexes: _______________________________________________ 72 Annex A _______________________________________________ 73 ESAP2 Grant Application Format _____________________________ 73 Project Title ____________________________________________ 73 Grant Budget Requested ($) _________________________________ 73 Date of submission _______________________________________ 73 Full name of lead organization / Applicant #1 _____________________ 76 4 /234 Acronym _______________________________________________ 76 Nationality _____________________________________________ 76 Legal status _____________________________________________ 76 Full name of partner organization / Applicant #2 __________________ 77 (delete sections below in case application is submitted by an individual organization) ___________________________________________ 77 Acronym _______________________________________________ 77 Full name of partner organization / Applicant #3 __________________ 78 (delete sections below in case application is submitted by a partnership of two organizations) __________________________________________ 78 Acronym _______________________________________________ 78 Full name of partner organization / Applicant #4 __________________ 79 (delete sections below in case application is submitted by a partnership of three organizations) ______________________________________ 79 Acronym _______________________________________________ 79 Annex B _______________________________________________ 89 ESAP2 Logical Framework Format ____________________________ 89 Annex C _______________________________________________ 91 ESAP2 Action Plan Format __________________________________ 91 General guidelines: _______________________________________________________ 91 Budget Format ___________________________________________________________ 94 Detailed Training / Workshop Sheet __________________________________________ 97 Staffing Schedule _________________________________________________________ 99 Budget Note ____________________________________________________________ 100 Annex E ______________________________________________ 101 ESAP2 Grant Application Partnership Statement _________________ 101 Partnership statement ____________________________________________________ 101 Full legal name _________________________________________ 102 (business name) ________________________________________ 102 Annex F ______________________________________________ 103 ESAP2 List of Woredas of Particular Relevance __________________ 103
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