LFA service requirements under NFM
The table is to provide guidance to LFAs on where they are expected to be involved during the process leading up to the signing of NFM grants. LFAs will be primarily engaged in assessing the proposed implementation arrangements and capacities and the review during Grant Making of the Modular Tool (i.e. detailed budget, indicators, targets, M&E and procurement plans). To ensure timely grant signing, the LFAs’ implementation assessment should commence as early as possible once the CCM has nominated the PR and completed the implementation map. During Grant Making, the focus of the LFAs’ engagement is on finalising the implementation assessment and reviewing the Modular Tool.
Please note that the engagement the LFAs will be tailored to the requirements of the portfolio. In some cases, the involvement of the LFA can be quite limited, especially when the nominated PR is an existing PR. In other instances it could be more extensive where, for example, the CT may require the LFA to attend as an observer some of the stakeholder meetings as part of the Country Dialogue or Concept Note development, as long as this is based on well-defined ToR and the independence of the LFA is safeguarded.NFM key milestones / LFA mandatory? Yes/No / Details of LFA service / Comment /
Ongoing Country Dialogue / NO / In exceptional cases LFAs may be requested to attend some specific meetings as observers, based on clear ToR to ensure the LFAs’ independence is safeguarded.
Concept Note (CN) / Review of strategic investment / NO
Review of counterpart financing & external funding / NO
Portfolio analysis / NO / The portfolio analysis is undertaken by the CT together with the CCM outlining key risks/concerns and the process/requirements for signing the grant.
Implementation assessment using the Capacity Assessment Tool (CAT)
(referred to in the LFA 2014 LFA Services Portal as ‘New PR assessment’/’Repeat PR Assessment’) / As required & tailored to the information requirements of the CT / As soon as the PR is nominated and the implementation map is completed by the CCM, the LFA starts the assessment of the capacity of key known implementers (PR or key SR), country systems and PSM arrangements using the CAT.
Based on the portfolio analysis and the nature of the nominated PR (i.e. new or existing PR), the scope of the LFA’s assessment is tailored by the CT to known risks and the specific requirements of the NFM grant, including the results of the implementation map. For instance, if the implementation map shows that the majority of the funds will be channelled to two SRs, then relevant aspects of the LFA assessment (e.g. FMS) should focus more on these entities than on the PR).
The assessment may also include the LFA review of the CCM/PR’s implementation mapping.
The LFA’s assessment does not include the review of the Modular Tool at this stage which is done during Grant Making.
Review of CN version of the Modular Tool (budget/indicators/targets etc) / NO / In exceptional cases LFAs may be requested to attend some specific meetings related to the development of the Modular Tool as observers, based on clear ToR to ensure the LFAs’ independence is safeguarded.
Review of CCM eligibility and key affected populations involvement / NO
Grant Making / Finalising the capacity assessment / As required & tailored to the information requirements of the CT / In most cases, the LFA will have started the implementation assessment during the Concept Note stage. As required, the LFA will complete the assessment during Grant Making.
Review of Modular Tool / YES, but tailored to the information requirements of the CT / The LFA will undertake a tailored review of the detailed budget, indicators, targets and assumptions; the M&E plan and the Procurement Plan (what will be procured and when). / LFAs are not systematically required to review the M&E Plan and target assumptions in all countries. The CT will agree with the LFA the required scope of the LFA review.
In most cases LFAs are not expected to review and comment on the National Strategic Plan (NSP) but need to report to the GF relevant information about its status and recommendations made by Government and technical partners.
Verification before grant signing as prerequisite for first disbursement / YES / This includes: LFA verification of the bank account details, confirmation of signatory, key PR information etc
 The requirements for the review of counterpart financing/external funding and the role of the LFA under results-based financing are still being discussed and elaborated.
 The current LFA assessment guidelines will be updated shortly (e.g. Budget Review Checklist, M&E checklist etc)