Designing In-Country Managed Funds
Section B | In-Country Administered Grant Funds Design
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Principles of Good Fund Design and Practice
There are a number of key factors that are important to consider in the development, design and review of In-Country Administered Grant Funds.
Diversity and flexibility in Funds design
The diversity of In-Country Administered Grant Funds highlights both the complexity of the environment to which donors respond, and the flexibility of this kind of mechanism. There are many possibilities in governance arrangements, and types of assistance provided. Good strategy, rationale and design processes will ensure that Funds will match the development challenges to be addressed.
Fund design
The design of any Fund will need to consider each of these elements, drawing on the factors that will enhance the effectiveness of what is being developed. This is shown diagrammatically.
Clear objective
In order to be effective and to achieve the desired outcomes, all Funds need to have a clear and transparent objective. This should be linked to, and be consistent with NZAID’s policies and strategies, particularly the relevant programme strategy.
Fund criteria
In order for each Fund to meet its objectives, criteria are required which identify key elements, e.g. the type of organisations to be supported, target beneficiaries, eligible activities, sectoral or geographic focus and issues like the funding of certain types of costs such as recurrent costs. These are discussed in later sections of the guideline.
Delivery mechanisms
The delivery mechanism identifies the processes and procedures needed in order to encompass the operating principles and criteria. They include issues like:
- programme, project or partnership approaches
- capacity building
- decision making and administrative processes (committees, secretariats, delegate)
- degree of mentoring and quality control
- single of multi-year funding
- technical or environmental appraisal/support/audit