Cash and Vouchers - WFP Remote Access Secure Services

Cash and VouchersUpdate to the Executive Board

Briefing Structure1. Context2. Cash-for-Change Structure3. Cash-for-Change Road Map4. Current Portfolio5. Priorities for 2013

Context

Context• Institutional Shift– Food Aid to Food Assistance• WFP as a Leader in Food Assistance– Implementing Scalable Cash or Voucher transfer Programmes– Establishing Systematic Approaches and Cross-Functional Business Processes– Setting Standards for Evidence Based Decision-making• Renewed Focus on Value for Money– Cost-Efficiency and Effectiveness– Establish processes for selection of most appropriate Transfer Modality• Call for Country-led, Country-Owned Safety Net Programmes– Enhance WFP ability to support governments in developing safety nets and other homegrownsolutions for hunger and malnutrition– Stronger Partnerships with government– Increasing role for private sector support‘Modern WFP is problem-based rather than instrument-based’

Cash-for-Change Structure

Cash-for-Change Governance– Steering CommitteeMembers: Division DirectorsSteeringCommittee– Cash-for-Change ServiceCash-for-ChangeService– Stakeholders GroupMembers: Service ChiefsStakeholders Group

Cash-for-Change StructureRB Field SupportTeamODNODJODDODPODBODCCash-for-ChangeServiceProgrammeInnovation Team• Best Practice &Learning• Quality Assurance& Standardisation• Partner AdvocacyCross-DivisionalCoordination Team• Tools & GuidanceDevelopment• Training & CapacityBuilding

Funding and Partnerships• Funding• ECHO• Sweden• Multilateral• Partnerships• UNHCR• IFPRI• CALP• MasterCard

Cash-for-Change Roadmap

Reaching ScaleCash-for-Change Road Map2011 2012 2013Phase 1 Phase 2 Phase 3CapturingInnovationLeveraging Innovation& Building CO CapacityFacilitatingScalable Deployment• Reviewing Pilots &Lessons Learnt• Identify Best Practicesand Challenges• Define Corporate C&VDistribution Models• Establishing BusinessProcesses• Cross-Functional Rolesand Responsibilities• Guidance & Toolsdevelopment• Training• Roll-out corporate tools• Enabling Scale-Up• Developing, EnhancingPartnerships• Forecast ResourcePotential

Phase 1 Review - Capturing Findings Innovation• Pilot Phase Produced Strong Innovation– A wide variety of new approaches, partnerships and technologies• New Approach, New Risks– Adoption of new business areas and new partnerships has inevitablybrought new risks and liabilities for WFP Country Offices to mitigate.• Common Challenges:– use of new ways of working;– procurement of new service providers;– limited of experience & capacity;– lack of clarity on roles & responsibilities; and– procedural challenges.• Changes in traditional COs’ business model:– Expanded operational roles for Programme and Logistics; and– New operational role Finance and ICT units.

Phase 1 - Capturing Innovation• Identification of Standard Models– Standardised design methodologies;– Defined business processes;– Rationalisation of delivery mechanisms; and– Provision of Corporate IT solutions.• Enabling Common Capacity– Improved coordination (internal / external)– Streamlined, Cross-Divisional Roles and Responsibilities– Provision of Corporate Field Support to Country Offices– Enhanced corporate understanding at all levels‘From 40 models to 4 models’

Phase 2 – Streamlined RolesSummary of Core Responsibilities for the Development and Delivery of Cash and Voucher Business ProcessesNeeds Assessment and Response Analysis Intervention Setup ImplementationDistribution ReportingLogistics ProgrammeFood Security,Nutrition andMarketAnalysesNoStopNeeds?YesGovernmentPolicies andSafety NetsCP CapacityAssessment &Operational RiskAnalysisLocal RetailSupply ChainAssessment &Operational RiskAnalysisEffectiveness,Operational RiskandExternalitiesCost-EfficiencyAnalysis -(Omega Value)TransferModalitySelectionCP SelectionRetailerSelection(VoucherOperations)StandardOperatingProceduresBeneficiaryRegistrationDistributionPlanning andCash/VoucherTransferRequestResourceAvailabilityCertificationMonitoring(e.g. BCM,PDM)MonitorTransferDelivery (Cashor Voucher)Reconciliationof BeneficiaryFigures andTransferAmountDistribution(POCB)Service ProviderInvoiceVerification(PODA)Request CPServicePaymentsRequestServicePaymentRequestRetailersPaymentsFinanceFinancial SectorAssessment &Operational RiskAnalysisFinancialService ProviderSelectionEffect Transferto DedicatedAccountsEffect Transferto Beneficiaries(Cash orVoucher)Perform BankReconciliationEffect CP, FSPand RetailerPaymentsICTICT CapacityAssessment &Operational RiskAnalysisIT SolutionSelection andTestingTrain Partnersin IT SolutionUseSupport Use ofIT Solutionwithin WFP andPartnersProcurementRFPs Issued andAnalysedContractsSigned

Phase 2 - Evidence-Based SelectionOperations Directive• COs should use the set of transfer modalitythat best meets the needs of beneficiaries.Determining Feasibility:• Preferences, Food Security and MarketContexts• Sectoral Capacity Assessments• Cooperating Partner Capacity• National Policies• Security and Risk ContextSelecting the Appropriate Responses:• Responses must be evidence-based and shouldbe cost-efficient, effective and appropriate.‘Food-based interventions are not the default intervention’

EffectivenessEvidence-Based SelectionCombining Efficiency and Effectiveness for decision makingHMore EffectiveLess EfficientMore EffectiveMore EfficientLLess EffectiveLess EfficientLess EffectiveMore EfficientLEfficiencyH

Phase 2 – Research CollaborationWFP- Government of Spain Collaboration 2009-2013• Captures operational lessons and evaluates comparative costefficiencyand effectiveness of cash, food and vouchers.• Using rigorous evaluation techniques, WFP and IFPRI havecollaborated in Ecuador, Niger, Yemen, and Uganda.Ecuador Findings• Vouchers led to the highestincrease in household foodsecurity ;• Vouchers were found to bemore cost-effective inincreasing caloric intake anddietary diversity.Uganda Findings*• Cash led to the highest increasein household food-security;• Food transfers increased theconsumption of CSB,particularly for children undertwo years.

Capacity and GuidanceField Support Function Established– Full Rome Office and Regional Bureaux Established– Country Specific Strategies Developed– 57 Field Support Missions UndertakenCapacity-Building Programme Launched– Three-Tier Training Strategy Established• Decision Makers (CDs, RDs)• Mid-Level Management (National Officers, P3—P5)• Implementers (GS, P1—P2)– Cross-Functional Training Programme Rolled-Out• 250 staff trained to date– E-Learning Module Under Development

Capacity and Guidance• Financial Procedures– Directive Under Approval– Revised Accounting PracticesCorporate IT System Development– Modular system supportingbeneficiary management, cash orvoucher distribution, andreconciliation– Piloting underway in Sudan, Kenya,Somalia and DRC.

Current Portfolio

Growth of WFP’s C&V portfolioApproved C&V Transfers (Million USD)400350300250200150100• Since 2009, there has beenan eight-fold increase inthe approved C&Vprogramme of work;5002009 2010 2011 201227%15%2012 C&V Portfolio6%Cash Account49%15%43%Immediate CashE-VoucherP-Voucher45%EMOPPRRODEV

WFP’s 2012 Portfolio1800160014001200100080060040020006754101 10418 16ODB ODC ODD ODJ ODP ODNApproved Programme of Work by RB in 2012 (million USD)C&VIn-kind

RegionalBureauWFP’s 2012 PortfolioProportion ofGlobalProgramme ofWorkCV Proportionwithin BureauxPortfolioODC 18% 11%ODD 19% 11%ODP 3% 11%ODJ 4% 8%ODB 22% 5%ODN 34% 4%

Future Priorities

Facilitating Scalable DeploymentImproving Field-based Decision-Making– Transfer Modality SelectionFull Integration of C&V TransferModalities– Determine the Optimal Use of Cash andVouchers in WFP’s country portfolioContinuing to Standardise Cash andVoucher Deployment– Use of Core Distribution Models– Corporate IT System

Partnership and CoordinationIncreasingly Conducive Environment– Increasing opportunities for collaborationCapacity and Limitations– Market, Partner and Service Provider capacity remains a criticallimitationPartnership Dialogue and Coordination– WFP should play a greater coordination role– Partnership dialogue should take account of changing roles andresponsibilities of all playersLink to Government-Based Systems– WFP must enhance its capacity to support, develop and/or utilisegovernment-based systems

Conclusion