2018 Guideline for General Budget Support Funding

National Treasury has funds available for the 2018/19 medium term budget under the General Budget Support component of the EU-funded National Development Policy Support Programme.

Proposals in support of the National priorities and compliant with the appropriate use of official development assistance (ODA) policies[1] will be considered from national government departments.

The available GBS funds for allocation for the 2018/19 medium term budget is R600 million. Proposals submitted by departments on the use of GBS funds will be assessed within the MTEF process. Proposals are to be submitted through your Public Finance Official within the National Treasury.

General Budget Support Funding

Within the context of the European Union (EU) country strategy for 2007-2013 the EU has increasingly moved to using country systems to deliver development assistance, most recently through the use of the general budget support (GBS) approach. GBS involves a transfer of funds to the partner country for allocation within the country, using country allocation processes, with the aim of supporting a national development policy and strategy of the partner country.

The move towards general budget support signifies confidence that a South Africa has the policies and systems in place to support the policy, both from the sectors chosen, and from a financial management position. From a South African point of view the following is of importance in respect of GBS:

  • There is one Financing Agreement between South Africa (National Treasury) and the EU for a single programme, reducing transaction costs;
  • Expenditure is aligned to the priorities of government and to the national budget process; and
  • SA Government systems are used for allocation, planning, implementation, procurement, accounting, reporting, monitoring and evaluation.

Criteria for selection of proposals for GBS

Proposals for the GBS funds available for the 2018/19 medium term budget must fulfil the following conditions:

  1. Proposals must be submitted by National Departments. Entities and other spheres of government may not submit proposals directly but must work through the departments from which they receive their mandate. The Call must be submitted through a national department, using the existing channels of communication between the National Treasury (Public Finance) and Departments.
  1. Proposals must demonstrate a direct contribution to the overall objective in the areas of employment creation (Outcome 4) or an efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship (Outcome 12). Where programmes might directly link to other outcomes in government, there must be sufficient flow to show impact on these key outcomes 4 and 12.
  1. Proposals must demonstrate that the use of ODA funds will be applied in support of new, innovative and or more effective ways to implement government priorities and policy. This is in line with the ODA Guidelines of 2003, which stipulates that ODA must add value, by supporting:

•Innovation: developing new and more effective approaches;

•Piloting and testing: pioneering new approaches for replication purposes;

•Risk mitigation: creating an enabling environment for SME development;

•Catalytic initiatives/best practices: unlocking or leveraging domestic resources; and

•Skills transfer and addressing of capacity gaps: ensuring that South African institutional capacity is enhanced for sustained, long term implementation.

The request for funding to support shortfalls in budget (stop-gap), additional funding towards programmes executed with appropriated funds, are strongly discouraged. This Call is specifically geared to proposals developed to enhance efficiencies and systems improvement in service delivery by government. Proposals with an explicit focus to operate and implement projects within a partnership framework between governmentwith civil society and/or the private sector, is encouraged. A partnership with civil society and/or the private sector could be defined as a co-conceived and managed and/or delivered initiative to deliver public goods and services. Further, the national department takes an active role in this partnership and the expectation is that there is pooling of financial resources, capacity and/or expertise to address an agreed common objective.

  1. Specifically, proposals are invited to enhance efficiencies and systems improvement in service delivery by government through the following proposed activities:- project preparation, pilot funding, research, dialogue, capacity building, public participation, technical assistance, monitoring and evaluation.
  1. Proposals will be deemed ineligibleshould proposed initiativesmerely partner with the applicant department as a procurer of services, or as the funder / provider of financial assistance/intermediary.Proposals for public, private partnerships (PPPs) orconcession-type partnerships that transfer the public sector’s day-to-day operations to the private sector.
  1. Partnerships must be with registered Non-Profit Organisations, under the Companies Act (71 of 2008), and private sector partnerships should not generate a profit as a direct result of a grant under this call.
  1. Proposals for projects may have a multi-year implementation period, up to three yearswith a minimum and maximum amount:

- Minimum R10 million

- Maximum R100 million.

Proposal submission

Proposals submitted for GBS funds will be assessed within the MTEF process. National departments must submit to their public finance official of the National Treasury.

Proposals must be submitted on the Business Plan for GBS funding 2018/19(attached as Annexure 1) by 14 July 2017.

Further guidance on General Budget support can be found:

ANNEXURE 1: Proposal for General Budget Support:Business Plan Template

To be submitted to National Treasury by 14 July 2017

BUSINESS PLAN TITLE

Programme Name

Date:

Author:

Tel no:

Cell no:

E-mail:

TABLE OF CONTENTS

Insert a Table of Contents

1.SUMMARY PROJECT DESCRIPTI0N

2.EXECUTIVE SUMMARY

3.MAIN TEXT

Programme Description

Rationale & Objectives

Project Specification

Budget and Financial management

4.ANNEXURES

Annex 1: Results Framework

Project name and objective

Component results framework (one for each component)

Annex 2: Component budget input tables

Annex 3: Cash use projection and Requested Disbursement Schedule

Annex 4: Quarterly milestone table as per template.

Annex 5: Partners of the Applicant

Annex 6: Checklist

1.SUMMARY PROJECT DESCRIPTI0N

Name Of Implementing Agency
Project Name
BAS Project Fund Code / Not applicable at proposal stage
Implementation Period of the Project
CFO
Contact Number
E-Mail Address

2.EXECUTIVE SUMMARY

Supply a high-level overview and include:
  • Brief description of the Programme and/or its Projects;
  • The rationale;
  • Role-players;
  • Cost; and
  • Timing implications.

3.MAIN TEXT

Programme Description

Provide a brief description of :
  • What is to be done in the project (eg what kind of activities)?
  • Who are the project role players: who will be involved and what is the extent of that involvement?
  • The accountable agency, and lead division within the agency
  • Other partners (implementation partners and or financial support, etc.)

Rationale & Objectives

Specify the objective of the programme.
  • What does the project hope to achieve?
Supply information on the rationale and motivation for the project including:
  • Provide reasons for the project: what is the problem or situation the project is responding to? How is the project responding to the issue at hand?
  • Provide motivation on the selection of partners, e.g. expertise, skills, financial support, value addition, etc.
  • Explain how the project relates to Outcomes 4 or 12. If anypartners are mentioned, please explain how the partnership relates to the Outcomes this proposal is addressing.

Project Specification

The Project specification provides a narrative summary of the Project Results Framework, which must be attached as an annex (see Annex 1: GBS Results Framework template)
Provide the following:
  • Specify expected project outcomes:
  • what outcomes do you expect to achieve?
  • Briefly describe the logic of each of the components of the project.
  • What intermediate outcomes do you expect in the component? An Intermediate Outcome specifies a result proximate to an intended final outcome, but likely more measurable and achievable in the lifetime of a project to the intended final outcome, and more attributable to project activities. Example: Teachers use the new teaching methods (output/intermediate outcome) to improve learning among students (final outcome).
  • What outputs and activities are you planning to achieve the intermediate outcomes?
  • Provide key performance indicators for the project: How will you know that you have achieved the project objectives?
  • The performance indicators specified should illustrate the achievement of project intermediate outcomes and outputs.
  • Discuss the key project milestones over the duration of the project (see Tab 3 under the GBS planning and budgeting template)
  • The milestones will relate to project outputs and activities and should indicate the financial year quarter in which the project expects to deliver outputs or undertake activities. The selected milestones can be summarised in the main body of the text.
  • Describe project management and accountability.
  • Where does the project sit in the Department?What are the roles and responsibilities of partners (if any)?
  • Who will make decisions? Who manages the project?
  • What is procurement strategy for the project?
  • Who will oversee implementation of the project?
  • How is coordination with other units, departments or non-state organisations/actors ensured (private sector and or civil society)?
  • What is the project monitoring and reporting plan? Is data available for the selected indicators; how will data be collected; how frequently will the project be reported internally? What are plans for reviewing the project?
  • Identify pre-conditions and project risks and strategies
  • What partnership plans should be in place for the project to start?
  • What other pre-conditions should be in place?
  • What are project risks and how will they be mitigated?
The Results Framework must be supplied as Annex 1
The Quarterly Milestones Table must be supplied as Annex 4

Budget and Financial management

1)Provide the budget summary table (See template on Tab 1 in the GBS planning and budgeting excel template for the component input tables)
EXPECTED PROJECT REVENUE FLOWS
FY1 / FY2 / FY3
GBS Project award
Other funds / 0 / 0 / 0
Specify source
Specify source
Specify source
TOTAL FUNDS AVAILABLE / 0 / 0 / 0
PROPOSED USE OF GBS FUNDS
FY1 / FY2 / FY3 / Total available
Total use of GBS funds by year / Must correspondent with total funds awarded
BY COMPONENT
Component 1
Component 2
Component 3
Component 4
BY ECONOMIC CLASSIFICATION (GBS)
Component 1
Component 2
Component 3
Component 4
  • Provide notes to the budget as required
  • Explain sources and use of additional funding to implement the project, if any.
The input tables for each component as per the provided template must be supplied as Annex 2.
  • Provide a table setting expected cash use by quarter, coupled with the requested 6 monthly disbursements (April and October of each year).
The expected cash use and requested disbursement tables as per the provided template must be supplied as Annex 3.

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4.ANNEXURES

Annex 1: Results Framework

Project name and objective

Project Name / Specify the project name
Project Objectives: / The Project Objective describes the intended benefits to be realized through the project. The intended benefits should be measurable and specific. By reading a project objective, one should be able to determine what is being targeted directly by the project and who (a community, group of people, institutions) will benefit.
The project objective and rationale should describe the expected contribution of the project to the achievement of Outcomes 4 or 12.
Project Outcome / The Project Outcome is the uptake, adoption or use of project outputs by the project beneficiaries
Project Components / If applicable, please specify the project components. The project outcomes, outputs, activities and inputs for each component must be described.

Component results framework (one for each component)

Component name / Specify Component Name
Project Intermediate Outcomes (by component):
List the intermediate outcomes expected from the component
An Intermediate Outcome specifies a result proximate to an intended final outcome, but likely more measurable and achievable in the lifetime of a project to an intended final outcome. Example: Teachers use the new teaching methods (output/intermediate outcome) to improve learning among students (final outcome). / Project Outputs (by component):
List project outputs over the life of the project
Outputs are the supply-side deliverables, including the events, products, capital goods or services that result from a development intervention (e.g., construction of a school).
The key distinction between an output (a specific good or service) and an outcome is that an output typically is a change in the supply of goods and services (supply side), while an outcome reflects changes in the utilization of goods and services (demand side). / Activities:
List main project activities over the life of the project
An Activity is an action taken or work performed by which inputs are converted into specific outputs. Activities, such as providing training, constructing a facility, etc. are designed to deliver outputs. / Inputs:
List main expected inputs over the life of the project
Inputs are the financial, human, and other resources mobilized to support activities undertaken by a project. Examples would include staff, travel, and accommodation.
Outcome Indicators (by component):
Provide indicators for the outcome listed: how will you know that you have achieved the intermediate outcome?
Baseline:
Target:
An Indicator is a measure that can be used to monitor or evaluate an intervention. Indicators can be qualitative (in which case they usually entail verbal feedback from beneficiaries) or quantitative (derived from measurements of the intervention) / Output Indicators (by component):
Provide indicators for the outputs listed. How will you demonstrate that you have achieved an output.
Baseline:
Target:
An Indicator is a measure that can be used to monitor or evaluate an intervention. Indicators can be qualitative (in which case they usually entail verbal feedback from beneficiaries) or quantitative (derived from measurements of the intervention).

Annex 2: Component budget input tables

PROPOSED USE OF GBS FUNDS BY COMPONENT
COMPONENT 1
Identify correspondent EXPENDITURE SUB-PROGRAMMES / FY1 / FY2 / FY3 / Total available
INPUT TYPE / EXPENDITURE CATEGORY (GFS) / Units / GBS Funds
(FY1 - FY3)
Consultants / 0
Travel / 0
Accommodation / 0
Meals / 0
Printing / 0
0
0
0
sub-total: / 0 / 0 / 0 / 0

Annex 3: Cash use projection and Requested Disbursement Schedule

EXPECTED USE OF CASH
FY1 / FY2 / FY3
COMPONENT / Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4
Current Payments / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Compensation of employees
Goods and Services
Transfers and Subsidies
Payments for Financial Assets
Capital Payments / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Machinery and equipment
TOTAL / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Total by FY / 0 / 0 / 0

Annex 4: Quarterly milestone table as per template.

EXPECTED MILESTONES by COMPONENT
Component 1
Output Milestones (to correspond with activities in Results Framework)
Milestone Number / Milestone Description / Achieved by (indicate quarter with an X)
FY1 / FY2 / FY3
Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4
1 / Output 1
1.1 / Break output down into sub-outputs or units of outputs by year, if useful.
Activity milestones (to correspond with activities in Results Framework)
Milestone Number / Milestone Description / Planned to take place during (indicate quarter with an X)
FY12 / FY13 / FY14
Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4 / Q1 / Q2 / Q3 / Q4
1 / Activity 1
1.1 / Break down activity milestones, for example, appointment of staff, purchasing of equipment, obtaining permissions, tendering work


Annex 5: Partners of the Applicant

This section must be completed for each partner organisation.

Partner 1
Full legal name (business name)
Nationality
Legal status (type of organisation)
Official address
Contact person
Telephone number
Fax number
E-mail address
Number of employees
Other relevant resources
Experience of similar actions, in relation to role in the implementation of the proposed action
History of cooperation with the applicant
Role and involvement in preparing the proposed action
Role and involvement in implementing the proposed action
Signed:
Date and Place

Annex 6: Checklist

BEFORE SENDING YOUR PROPOSAL, PLEASE CHECK THAT EACH OF THE FOLLOWING COMPONENTS IS COMPLETE AND RESPECTS THE FOLLOWING CRITERIA / To be filled in by the Applicant / NATIONAL TREASURY
Yes / No / n/a / Yes / No / n/a
  1. The correct grant application form, published for this call for proposals, has been used and completed as per requirements

  1. The proposal is typed and is in English

  1. The deadline for submission has been respected

  1. One original and a flash disk (or email version) have been submitted

  1. In the case of a partnership (if applicable), the partnership is with a with a registered Non-Profit Organisations, under the Companies Act (71 of 2008)

  1. Each partner has completed and signed a partnership statement (Annex 5) and the statements are included (if applicable).

  1. The duration of the action is clearly shown and is up to 3 years

  1. The requested contribution is equal to or higher than the minimum allowed of R10 million

  1. The requested contribution is equal to or lower than the maximum allowed of R 100 million

  1. The request for funding is not to support shortfalls in budget (stop-gap), nor is it merely additional funding towards programmes executed with appropriated funds,

  1. Annex 1-The Results framework has been completed

  1. Annex 2-Component Budget input tables have been completed

  1. Annex 3-Cash use projection and requested disbursement has been completed

  1. Annex 4-Quarterly Milestone table has been completed

  1. The CFO’s contact details have been included.

  1. The CFO of the National Department is aware of the proposal and approves the budget

  1. The application is submitted by a National Department

  1. The proposal demonstrates a direct contribution to the overall objective in the areas of employment creation (Outcome 4) or an efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship (Outcome 12)

  1. Where available, any other documentation that would assist in motivating your project application, and assist the Evaluation Committee in assessing its feasibility and sustainability has been enclosed?

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[1]Set out in the ODA Guidelines of 2003