Timely Access to Anticipation Funding for RCRC National Societies

Background and objectives of project/program

Over the past five years Red Cross Red Crescent (RCRC) National Societies (NS) have created Anticipatory Action plans in over 30 countries, with dozens of additional NS preparing to engage in this work. These RCRC NS AA plans are often but not always captured in the form of Early Action Protocols (EAPs); plans for a specific hazard scenario that are approved with pre-agreed financing by the International Federation of the Red Cross & Red Crescent Societies (IFRC). With financing mechanisms proliferating in the AA window, non-EAP plans and associated funding for RCRC NS are also increasingly coming into play. As National Societies and their partners gain experience in designing and implementing these AA plans, a recurring issue has often been highlighted by practitioners: access to funds for anticipation interventions is not consistently fast enough to ensure programmatic goals are met. A recent study on all EAP funded NS Anticipatory Action interventions confirmed these anecdotes, finding that the number one barrier to successful program implementation was timely access to financing.

Access to funding in the anticipation window is rooted in challenges regarding liquidity at the local level, where early actions are commonly carried out by RCRC NS branches. The RCRC branches carrying out anticipation interventions often do not have locally-held funds available to draw against to fund activities such as paying volunteer per diems, outfitting evacuation shelters and financing cash transfers to populations. This requires branches to wait for funds to be transferred, despite the fact that the time between receiving a forecast and the anticipated onset of the hazard is often too brief for funds to be received in time to carry out planned activities. In certain scenarios, banking transfer times simply won’t allow for funds to be received ahead of a short lead time hazard such as a cyclone, even from national headquarters to local branches. In other instances, lead time for funds transfers would be sufficient if not for bureaucratic obstacles. In all instances, a lack of liquidity at the local level hinders programmatic timeliness and quality.

Creative solutions, including but not limited to modifying financial Standard Operating Procedures (SOPs), temporary bank loans and overdraft agreements, delayed payment terms with goods and service providers, prepositioning of local funds with reimbursement through RC partners, and externally-funded financial service agreements are all potential options that need to be formally explored. Through this consultancy, a comprehensive problem analysis will be conducted and these solutions and other suitable alternatives will be thoroughly investigated and mapped against identified problems. These findings will be accompanied by tools to assist RCRC actors to address bottlenecks regarding AA financial transfers.

Scope and reach of project/program

The scope of the project is global and will include data collection and problem analysis in a variety of countries/contexts.

Purpose of consultancy

The purpose of this consultancy is to provide Red Cross Red Crescent Movement actors with the knowledge, solutions and accompanying tools to enable timely access to funding for National Society anticipatory action programs.

Main audience and dissemination plan of evaluation

The primary audience for the findings of this work will be the Red Cross Red Crescent Network and wider Anticipation Humanitarian community.

Scope of work

The contractor will be responsible for carrying out the following:

• Generate report that provides a comprehensive problem scoping of financial pipeline barriers for all relevant AA NS financing mechanisms through desk review, Key Informant Interviews (KIIs), and if appropriate, in-country visits
• Through in-depth research and consultation, identify and detail at least five actionable, scenario-based solutions to address challenges to timely access to AA financing, as identified in problem scoping
• Generate guidance and/or tools for RCRC actors to 1) clearly assess and identify financial pipeline barriers in their context, 2) select appropriate solution(s) and 3) implement identified solutions
• Create a publicly shareable document on consultancy findings outlining overall problem analysis and solutions, potentially accompanied by an applied case study with a National Society that has participated in problem identification and solutioning
• For identified solutions that require significant time and investment to fully realize (ie negotiating global financial service provider agreement), detail recommended next steps to pursue

Discussion of inception report

A kickoff call will be arranged with the contractor where details of the review and a workplan will be established.

Logistic and Administrative Support

There is potential opportunity for contractor to travel to carry out problem scoping and analysis. Logistics/travel support and associated costs will be provided by American Red Cross in the event contractor is asked to travel.

Reporting relationship

The contractor will report to Lisa Williams, Sr. Anticipation Global Lead, International Services Department, who is the designated project manager.

Beneficiary participation

Community-level beneficiary participation is not likely to be included in this work; however, in the case the contractor decides to engage communities in interviews or focus groups, the local National Society will take lead on selecting and arranging data collection with the community.

Future use of data

All collected data will be the sole property of the American Red Cross. The contractor may not use the data for their own research purposes, nor license the data to be used by others, without the written consent of the American Red Cross.

Expected Deliverables

1. Inception Report that outlines agreed upon objectives of the study, study design and methods to be used, and a preliminary data collection plan and tools to be approved by the study manager
2. AA process mapping (current v. ideal state) and problem analysis report for all relevant NS funding mechanisms including key stakeholder involvement
3. Documented solutions (5+) for financial pipeline barriers, with clear detail on relevant use cases and resources required to implement
4. RCRC tool on financial pipeline barrier problem identification and solution selection and implementation
5. Publicly shareable technical guidance note and/or case study on consultancy findings
6. Recommended next steps for any solutions that require additional time and investment to action
7. PowerPoint (or similar communication tool) of findings with presentation to AmCross staff

Qualifications

• [Required] Relevant working experience in financial systems, processes and contracting in the humanitarian context
• [Required] Demonstrated operational experience and understanding of disaster management, institutional preparedness, anticipation, and the role of financial pipelines
• [Preferred] Red Cross experience strongly preferred especially experience with a National Society or working within the International Federation of the Red Cross and Red Crescent Societies.
• [Required] Excellent verbal and written skills, and effective interpersonal skills.
• [Required] Engage in flexibility, adaptability, results oriented behavior.
• [Required] Strong project management skills and proven track record of keeping projects on time, scope, and budget.
• [Required] Excellent analytical skills, including the ability to synthesize, process and prioritize large amounts of information quickly.
• [Required] Excellent computer skills with MS Office software, including Word, Excel, PowerPoint, and Outlook.
• [Required] Fluency in spoken and written English.