HOMF | Head of Mission Funds Guidelines
Risk management
Risk can be minimised by sound project identification and management. The HOMF is a higher risk programme because projects are not subject to rigorous development or appraisal processes and funding is sometimes provided to organisations with weak project management skills.
Crosscutting strategies for reducing risk in HOMF include limits on:
- funding;
- project duration; and
- project scope (no multi-stage or rolling funding).
Key risks for HOMF include misappropriation, or the non-use, of funds or goods by recipients, poor project implementation and poor project conception.
The following table outlines possible risk management strategies for key risks noted above.
|
Key Risk |
Risk Management Strategy |
|
Misappropriation or non-use of funds or goods by recipients. |
· aim to support fewer activities to facilitate M&E · decline to fund high risk goods (TVs, videos, vehicles etc.) · check bona fides/background of applicant with other donors, government agencies or reliable NGOs/volunteers · consider use of credible agencies present in the field as funding conduits · involve project beneficiaries in the project, hold hand-over ceremonies and issue press releases · pay funds across only after recipient has accepted funding terms and conditions · pay on original invoices · directly purchase goods and forward to applicants · provide payments or goods in tranches · monitor projects · follow-up on acquittals |
|
Poor project conception |
· use application forms which require applicants to think through proposals · query assumptions with applicants · refer applicants to groups/persons who can assist with project formulation · follow the guidelines for eligibility
|
|
Poor project implementation |
· place weight on “feasibility” as a screening criteria · place weight on “applicant’s contribution” as a screening criteria · support comparatively competent applicants · support low risk projects (ie simple, straightforward activities involving familiar methods and technologies) · seek advice from others (eg reliable NGOs, volunteers, other donors)
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