The organisations need some flexibility in this unstable environment. Are we flexible to adjust grants during the implementation (for instance, if a particular result cannot be met)? Who has the responsibility for justification?
Overall, for the programme, the Fund Operator is provided with a high level of flexibility to reallocate funds within the programme within the limits provided in Article 8.1 of the Programme Implementation Agreement. When it comes to grants already awarded, we can distinguish between organisational grants and other grants. For organisational grants, it will depend on the organisational grant contract and the nature of the adjustment that is needed, but in principle it would suffice to acknowledge the change in the organisational strategy. For other grants, whether regular project grants or small project grants, depending on the nature of the change, it would likely depend on the contract and require a project contract modification. In this case, the Fund Operator would have to have a justification as to why the planned activities cannot happen and the results cannot be achieved. It is the Fund Operator's responsibility to verify that the revised plans will still contribute to the overall desired Programme level results.
In volatile political situations with high level of unpredictability, how can we remain flexible in implementing the fund and adapting priorities?
The Fund Operator is provided with a high level of flexibility to reallocate funds within the programme within the limits provided in Article 8.1 of the Programme Implementation Agreement. The Fund Operator can reallocate between outcomes, to and from calls and from pre-defined projects without prior approval from the FMO or the need to modify Programme Implementation Agreement. As per the Programme Implementation Agreement, up to 25% of the funding can be reallocated from an Outcome. For outputs, it is up to 50% of the agreed allocation to that output. For calls, it is up to 50% of the allocation to that call. For pre-defined projects, it is up to 20% of the agreed project grant. The Fund Operator must always notify the FMO of its intention to reallocate funds according to Article 8.1. The FMO has two weeks to object if it does not agree with the reallocation. The two weeks will commence on the date of confirmation of receipt of the notification. If no objection is received within these two weeks, the Fund Operator is free to proceed with the reallocation.
Kindly note that reallocating to pre-defined projects, thus increasing the amount of the pre-defined project, always requires the prior approval of FMO and will result in the modification of the Programme Implementation Agreement.
Further reallocations beyond the parameters in Article 8.1 of the Programme Implementation Agreement require a prior approval of the FMO.
The Donors have previously demonstrated willingness to be flexible to accommodate emerging challenges. During the Active Citizen Fund programme implementation, there were measures to ensure flexibility both during the Covid-19 pandemic and when the Ukraine invasion started.