HEI ICI –

Higher Education Institutions Institutional Cooperation Instrument

2012 - 14

Programme Document

MFA/ June 2012

2

Contents Abbreviations........................................................................................................................................................................................ 4

PART I HEI ICI Programme ........................................................................................................................................................ 5

1 Introduction...................................................................................................................................................................................... 5

2 Background of the HEI ICI Programme .............................................................................................................................. 7

3 Definition of the HEI ICI Programme .................................................................................................................................. 7

3.1 Overall objective, purpose and outcomes of the Programme ...................................................................... 7

3.2 Result Areas ............................................................................................................................................................................ 8

3.3 Non-eligible actions ............................................................................................................................................................ 9

4 Scope of the HEI ICI Programme ........................................................................................................................................... 9

4.1 Budget and duration of the programme .................................................................................................................. 9

4.2 Geographical coverage ...................................................................................................................................................... 9

4.3 Beneficiaries of the HEI ICI Programme ............................................................................................................... 10

5 Approach and main characteristics................................................................................................................................... 10

5.1 Approach and critical issues ....................................................................................................................................... 10

5.2 Actors and key stakeholders....................................................................................................................................... 14

5.3 Eligible applicants and partners ............................................................................................................................... 15

6 Evaluation process of project proposals ........................................................................................................................ 16

6.1 Eligibility criteria .............................................................................................................................................................. 17

6.2 Evaluation Criteria ........................................................................................................................................................... 17

6.3 Publication of the selection results ......................................................................................................................... 20

PART II HEI ICI Projects........................................................................................................................................................ 21

7 Roles in project management (Key experts, Project board, and Coordinators) ................................... 21

8 Instructions to Applicants ...................................................................................................................................................... 22

8.1 Preparing a HEI ICI Project.......................................................................................................................................... 22

8.2 Public call for applications ........................................................................................................................................... 23

8.3 Application documents .................................................................................................................................................. 23

8.4 HEI ICI Project funding .................................................................................................................................................. 25

8.5 Cost Items ............................................................................................................................................................................. 26

9 Project implementation ........................................................................................................................................................... 31

9.1 Financial management of a project ......................................................................................................................... 31

9.2 Reallocations within the budget during implementation............................................................................ 31

9.3 Risks and risk management ........................................................................................................................................ 31

3

9.4 Intellectual Property Rights ........................................................................................................................................ 32

9.5 Extension and continuation of a project ............................................................................................................... 33

10 Monitoring and Reporting ........................................................................................................................................... 33

10.1 Annual progress reports ............................................................................................................................................... 34

10.2 Completion report ............................................................................................................................................................ 35

11 Evaluation ............................................................................................................................................................................. 36

ANNEX 1 Project Document ....................................................................................................................................................... 38

ANNEX 2 Logical Framework Matrix ..................................................................................................................................... 41

ANNEX 3 Project Work Plan template .................................................................................................................................. 42

ANNEX 4 Presentation of Key Expert’s template ............................................................................................................ 44

ANNEX 5 Memorandum of Understanding template .................................................................................................... 45

ANNEX 6 Budget template .......................................................................................................................................................... 48

ANNEX 7 Annual Progress Report template ...................................................................................................................... 50

ANNEX 8 Annual Financial interim Report template .................................................................................................... 51

ANNEX 9 Completion report template ................................................................................................................................. 53

ANNEX 10 Financial Completion Report template ......................................................................................................... 57

ANNEX 11 Auditing guidelines for the auditor in partner country HEI .............................................................. 59

4

HEI ICI

Higher Education Institutions Institutional Cooperation Instrument

Abbreviations SG Steering Group ADEA Association for the Development of Education in Africa ACU Administrative Coordination Unit ( = CIMO) CIMO Centre for International Mobility HEI Higher Education Institution HEI ICI Higher Education Institutions Institutional Cooperation Instrument IC Institutional Cooperation ICI State Institutions’ Institutional Cooperation Instrument (state ICI) MDG Millennium Development Goal MOEC Ministry of Education and Culture MoU Memorandum of Understanding MFA Ministry for Foreign Affairs of Finland MTR Mid Term Review NGO Non-Governmental Organisation NSS North-South-South –programme ODA Overseas Development Assistance PD Project Document PINNET The Universities of Applied Sciences Network for the Development of Internationalisation TOR Terms of Reference UniPID Finnish University Partnership for International Development

5

PART I HEI ICI Programme

1 Introduction Poverty reduction and the achievement of the UN Millennium Development goals (MDGs) are the main priorities in the development policy1 of Finland.

In the Dakar 2000 Rationale, the international community committed themselves to the Education for All goals, which were later confirmed through the Millennium Development Goals. The EFA goals aim to meet the learning needs of all children, youth and adults and imply a holistic perspective on the education system, from early childhood to higher education.

Higher education has an active role in fostering socioeconomic and cultural development at the national as well as local and regional levels. Higher education is a process of constructing and co-creating knowledge and providing skills to individuals to empower them to participate in development, decision making and the democratic process. Effective education takes place when students are able to participate fully in and benefit from the education. Citizens should be equipped with tools to communicate and collaborate with the rest of the world and shape their own futures by building capacity through higher education and international cooperation. The resources of higher education institutions (HEIs) in developing countries are often weak and isolated from the rest of the society in many areas. HEIs need capacity development and improved resources in order to attract the most capable teaching and administrative staff as well as students. Several HEIs are affected by rigid and isolated structures and outdated teaching methods. As a result of poor quality the higher education system does not provide its graduates with the skills the economy and employment markets require. There is a need for an increased focus on the efficiency of administration and management in the education sector.

HEIs can play a critical role in achieving the Millennium Development Goals (MDGs), if connected to the development of economy and society. A strong Higher Education system is important for sustainable progress toward achieving many of the goals. For instance, it can contribute to the eradication of poverty and hunger by promoting agricultural innovation and business development through teaching, research and innovative outreach programmes in collaboration with business, civil society and the public sector. Training of teachers contributes to the goal of Universal Primary Education (MDG 2). Similarly, without HEIs and qualified health professionals educated by them the goal of “reducing child mortality” (MDG 1 Finland’s Development Policy; http://formin.finland.fi/public/default.aspx?nodeid=15318&contentlan=2&culture=en-US

6

4) cannot be achieved. HEIs can also play a crucial role in promoting gender equity (MDG 3) by mainstreaming gender in teaching and research and by promoting education and training of women. By increasing the level of expertise in all the sectors of society, well functioning HEIs will also contribute to the self-reliance of developing countries and thus reduce aid dependency. In its own development policy, Finland emphasizes the rule of law, democracy, human rights, inclusive green economy that creates employment, sustainable management of natural resources, and protection of environment and development of human resources. HEIs have an important role in furthering green economy through knowledge society development, innovation processes and human resource development. In these activities, Finland builds on its strengths in the educational sector, communications, environmental technology and good governance. The crosscutting themes of Finnish development policy - gender equity, sustainable climate and reduction of inequalities - should be supported throughout all HEI cooperation.

The Ministry for Foreign Affairs (MFA) of Finland has supported higher education cooperation in developing countries for several years. The MFA has funded two programmes both of which contribute to the Millennium Development Goals for reducing poverty and supporting sustainable development and are in line with Finland´s development policy guidelines. Since 2004 the MFA has funded the North-South-South (NSS) Higher Education Institution Network Programme, the purpose of which is to develop partnerships between HEIs in the North and South and enhance human capacity in all participating countries through interaction and mobility. The Higher Education Institutions Institutional Cooperation Instrument (HEI ICI) Programme, which contributes to capacity development by promoting administrative and educational development in developing countries, was launched in 2009.

These programmes also support the realization of the Strategy for the Internationalization of Higher Education Institutions in Finland 2009–2015 published by the Ministry of Education and Culture. The theme of global responsibility encourages the Finnish higher education institutions to utilise their expertise to solve global problems and to consolidate competence in developing countries.

Ownership of the partner HEIs is the key to success in capacity development projects. Therefore, the goals of the projects should be in line with national higher education (and related) policies, the higher education institutions’ own strategies for Internationalization and international cooperation as well as the development strategies of the HEI´s in the South.

The HEI ICI and NSS Programmes provide a mechanism through which HEIs in Finland and in developing countries can cooperate in institutional capacity development projects. Capacity development and cooperation between Finnish and developing country HEIs are based on needs defined by the developing country HEIs, and built on the principles of mutual learning and partnership.

7

2 Background of the HEI ICI Programme For some years already the MFA has financed institutional capacity development between public sector organizations through the Institutional Cooperation Instrument ICI (later referred to as state ICI). Due to changes in the legislature in 2009 the Finnish universities were no longer considered as governmental institutions and were no longer able to participate in the Institutional Cooperation between governmental institutions.

In order to continue the important cooperation between Finnish and the developing countries’ HEIs, the MFA developed a Higher Education Institutions Institutional Cooperation Instrument (hereafter referred to as HEI ICI) targeted specially at the higher education sector.

In 2009 the ministry supported the first preparation phase of the HEI ICI Programme, in which altogether 72 applications were received and funding was awarded to 20 projects.

Altogether 43 applications from Finnish universities and Polytechnics/Universities of applied sciences were submitted when the first full application round was implemented in 2010. A total of 15 applications were approved and 5.6 million Euros were allocated to project implementation. The majority of the projects have not only contributed to the development of curricula and degree programmes but also improved teaching quality and pedagogical methods. Some projects have had an explicit objective of organizational development or improvement of information systems as well.

Projects have been implemented mainly in African countries, even though projects are distributed across the world: Cambodia, Egypt, Indonesia, Kenya, Laos, Namibia, Nigeria, Mozambique, Palestinian territories, Republic of South Africa, Sudan, Tanzania, Uganda, Vietnam, and Zambia. The projects represent different fields, such as agriculture, business studies and management sciences, education sciences and teacher training, social sciences, natural and medical sciences and engineering, communication and ICT as well as humanities.

The preparation phase of the HEI ICI was administered by the Finnish University Partnership for International Development (UNIPID). The administration of the second phase was outsourced to the Centre for International Mobility (CIMO), which is an independent agency under the Finnish Ministry of Education and Culture.

3 Definition of the HEI ICI Programme

3.1 Overall objective, purpose and outcomes of the Programme The overall objective of the HEI ICI Programme is to support the development of sustainable institutional capacity in HEIs so that higher education and research can contribute to the

8

development of society, build competencies consistent with national development goals, and contribute to the goals of inclusive sustainable development and reduction of poverty.

The purpose of the Programme is to strengthen developing country HEIs as developmentally responsive institutions by enhancing administrative, field-specific, methodological and pedagogical capacity. This purpose will be achieved through institutional cooperation between the HEIs in Finland and partner developing countries in selected result areas.

3.2 Result Areas

The MFA will finance capacity development projects of Finnish and the developing countries’ HEIs to meet the objectives set to the HEI ICI Programme. HEI ICI projects must fall under the following Result Areas: (i) Improved quality and relevance of higher education

The HEI ICI projects may aim at improving the quality and relevance of higher education for instance through revision or development of study programmes or courses and by improving the pedagogical and methodological capacities of the staff of the university, development of joint study programmes, development of materials and training programmes, improving quality assurance systems, accreditation systems, or learning environments. The projects may also include initiatives aimed at strengthening research environment, research methods or development of structures of post-graduate studies of the partner HEIs

(ii) Enhanced management, leadership and governance capacities in higher education institutions Projects under this category may include initiatives aimed at improving management and decision making procedures, capacity development of administrative staff, or development of management systems.

(iii) Improved information management in teaching and learning This Result Area may include projects which focus on promoting the capacities of the HEIs to use information management and ICT in teaching and learning, improving access to information for education staff and students, improving library services, e-learning, financial management, training of trainers, or peer learning of teachers.

(iv) Strengthened the role and relevance of the HEIs in development

As the HEIs are increasingly expected to participate in the development dialogue and link with the business world and employment market, projects which strengthen their capacity in this work can be financed. This may include projects aimed at developing HEIs’ capacities to establish stronger links for instance between industry and other

9

HEIs, promotion of internationalization and strengthening the capacities of the HEIs to participate in policy dialogue and development efforts. Projects are also encouraged to enhance inclusive rights to higher education.

3.3 Non-eligible actions The HEI ICI Programme funds cannot be used to support academic or applied research or higher education exchange. Provision of commissioned training offered in Finland and support to individual students or the acquisition of a degree in Finland cannot be financed. Education components given in Finland exceeding the length of one month per year per student cannot be financed from HEI ICI funding.

According to general guidelines of the Finnish development cooperation funding it is not allowed to purchase land, compensate representational expenses or gifts, compensate basic education or university degrees of individuals, spread ideologies, nor propagate religion.

4 Scope of the HEI ICI Programme

4.1 Budget and duration of the programme The overall budget for the programme period 2012 – 14 is 10, 5 MEUR. It is planned to organize two separate calls for applications within the budget. Approximately 7% (245 000 €/ year) of the budget is for the administrative purposes of the programme management and the rest 93% (3 255 000 EUR/year) for project implementation. The MFA funding (for a HEI ICI project/applicant) can be from 100 000– 500 000 euros. The duration of a project may be from one year to three years. HEI ICI PROGRAMME BUDGET (€)

2012 2013 2014 TOTAL %

Project funding 3 255 000 3 255 000 3 255 000 9 765 000 93% Administration (ACU) 245 000 245 000 245 000 735 000 7% TOTAL 3 500 000 3 500 000 3 500 000 10 500 000 100%

4.2 Geographical coverage The Finnish development policy action plan (2012) focuses Finnish development cooperation to least developed countries in Africa and Asia. The policy also calls on concentrating

10

development cooperation to long-term partnerships and the reduction of fragmentation of aid. Following these principles HEI ICI projects can be carried out in all developing countries which qualify for Official Development Assistance (ODA) as defined by the OECD2. In the selection criteria cooperation with least-developed countries is emphasised. Synergies and complementarity with other Finnish development cooperation, especially in relation to the country-strategies with Finland´s long-term partner countries (Ethiopia, Kenya, Mozambique, Nepal, Tanzania, Vietnam and Zambia), are also used as a criteria when selecting projects.

4.3 Beneficiaries of the HEI ICI Programme The final beneficiaries are the citizens of the developing countries who will benefit from the improved services from their HEIs, the teaching and administrative staff and the students of the partner HEIs as well as surrounding society which will gain more qualified and well trained labour force.

5 Approach and main characteristics The HEI ICI can be used to finance a variety of ODA-eligible3 capacity development activities in the higher education institutions. The main requirements for HEI ICI projects are that they are clearly based on needs identified by the developing country partner HEI(s), with evidence of strong ownership and cooperation, and that the cooperation is results-oriented with well-defined, measurable objectives.

5.1 Approach and critical issues Capacity development

Capacity development is defined as an ongoing process to increase the abilities of an organization to perform its core functions, solve problems and achieve its objectives (see for instance UNDP definition)4. Capacity development may target personnel but it can also focus on the organization. It may address the external factors and the environment within which the organization operates. While carrying out capacity development it may be necessary to analyze and address all these dimensions because capacity in one of the levels cannot guarantee delivery of services without capacity in the other levels. Capacity development is a an on-going process that must be based on a national priority, analysis of the national system of higher education and its contribution to social, economic and political development. A 2 www.oecd.org/dac/stats/daclist 3 www.oecd.org/dac/stats/methodology 4 http://www.undp.org/content/undp/en/home/ourwork/capacitybuilding/overview.html

11

proper analysis of the policy context and institutional capacity assessment is needed. The analysis should establish clear goals for strategic direction by viewing the higher education system as a whole and determine what each part can contribute to the public good. Relevance A HEI ICI project is taken place in a broader sector or national development context. Capacity development goals set out in the Project Plan should be aligned with the general development policy objectives as mandated, for example, by Poverty Reduction Strategies PRSPs5, and sector plans issued for instance by the Ministry of Education and/ or Higher Education or sector ministries such as Ministry of Agriculture or Ministry of Health as well as with developing country’s official science, technology and higher education policy goals as set out in national development plans and comparable documents. In addition, specific thematic or geographical priorities defined by the developing partner countries should be taken into account in HEI ICI projects. The HEI ICI projects must be based on the capacity development needs of the partner HEIs. They may have institutional development strategies where their capacity development needs are identified. Sometimes reference to the strategy papers may not, however, be sufficient to verify and assess the extent and level of capacity development needs. In such cases capacity assessments or studies in the partner organization and its operating environment may be needed. Instruments for such institutional or organizational assessments can be found in the internet (e.g. Promoting Institutional and Organizational Development. A sourcebook of Tools and Techniques DFID 20096). Capacity development needs may also have been identified in evaluations of previous projects.

Finally, the projects must be in line with the Finnish Development policy and its guiding principles and goals as well as with the internationalization strategies of the Finnish HEIs. ). If project is planned to implement in one of the Finland´s long term partner countries reference to Country strategies should be made. The project application must connect the HEI ICI project with those policies and strategies and articulate what impact the proposed project is expected to make.

Ownership and commitment As indicated above, the institutional cooperation process must be demand-driven. The limited capacity and/or capability of the developing country’s institution must be the entry

5 These papers can be found for instance on the International Monetary Fund IMF web page http://www.imf.org/external/np/prsp/prsp.aspx; 6 http://webarchive.nationalarchives.gov.uk/+/http://www.dfid.gov.uk/pubs/files/prominstdevsourcebook.pdfxxx)

12

point. Experience and studies of capacity development (e.g. Norad 20087) show that the role of the partner HEI should be decisive in defining the objective and suitable indicators for the project. Therefore open dialogue during the project preparation is important. The Finnish HEI(s) and experts should jointly consider what would be “the best fit” solution for the capacity challenge of the partner HEI. The Finnish Development policy emphasises democratic ownership. This ownership is also critical for the HEI ICI and it should be demonstrated in the project applications. Because assessing the level of ownership is difficult, indicative indicators may be used. For instance, in the application there must be evidence that the project preparation process has been implemented in a participatory manner, engaging a broad range of beneficiaries. Also evidence of top level (rector, dean) support and commitment is a sign of commitment at institutional level. The willingness of a partner HEI to invest in the project through funding, time and human resources are important indicators of ownership.

The Project Document should be prepared in a participatory manner by the applying HEIs. Though funding for project preparation phase is not available from the MFA, the HEIs are encouraged to joint planning for example through workshops and face-to-face consultations during the preparations. Compatibility and complementary The HEI ICI is a development cooperation instrument that is based on matching Finnish higher education sector expertise and the needs of this sector and partner institutions of developing countries. Thus, the plan must demonstrate that the Finnish higher education institution (HEI) has the required expertise and know-how, also making it clear how these will be applied. The proposal must also demonstrate what the potential expected benefits of the cooperation to the Finnish HEIs are. Further, potential compliance and synergy benefits with other interventions in the country or sector need to be presented clearly. Feasibility and effectiveness The HEI ICI projects must be results-oriented. The project implementation should be based on a technically sound project plan with clear result-oriented objectives responding to demonstrated needs. The application shall also elaborate what is the “change theory or hypothesis” which shows the logic between the inputs, activities, outcomes and expected changes. Utilization of a logical framework matrix (LFA)8 supports the planning and presenting of the logic behind the project.

7 Hansen Stein and Laugerud Tore 2008 Review and Synthesis of Lessons Learned from Institutional Cooperation and Capacity development in the

Environmental Sector in Norwegian Development Cooperation. Norad Report 12/2008 . ISBN 978-82-7548-283-7

8 see Annex 3 Logical Framework Analysis matrix

13

Sustainability The projects should support institutional development in a sustainable manner. A Sustainability analysis is an integral part of the project plan. It includes an analysis of financial, institutional, social, technological and environmental factors which influence the degree to which the benefits produced by the project continue after the external assistance has come to an end. The assessment of financial sustainability should always analyze the prospects of funding the activities through incomes obtained through improved production/service, beneficiary contributions (cost sharing) over the longer term. For instance, sustainability assessment includes an analysis of the HEIs ability to provide continued financing or explain how the capacity building efforts will improve sustaining of the outcomes of the project. For instance, sustainability assessment includes an analysis of the HEIs ability to provide continued financing for sustaining of the outcomes of the project.

Cross cutting objectives

Cross-cutting objectives9 are derived from international human rights conventions, which Finland and our partners have undertaken to implement, or they are mentioned in political commitments that the Government considers significant for its development policy. Finland supports the partner countries’ efforts on promoting cross-cutting objectives, based on their own policies and their policy making processes. All projects should pay attention to the cross-cutting objectives of Finnish development cooperation: gender equality, reducing inequalities and climate sustainability. Especially by strengthening the position of vulnerable and easily marginalized groups can inequality be reduced and favorable conditions for sustainable development created.

Result orientation

The focus in development is on reaching sustainable development results. This implies that major emphasis should be on reaching long term development outcomes and impacts (such as increased numbers of skilled people), and not only on delivering short-term outputs (such as number of classrooms built and textbooks delivered). The concept of result chains helps to understand the difference and interrelatedness of the different levels of results. In this context, the concept of results covers outputs, outcomes and impacts. In practice the result orientation means that development interventions include general, sector or intervention level results frameworks against which the progress and performance is assessed (i.e Logical Frameworks or similar in project type interventions).

9 The current formulation of the objectives as well as tools on how to address them can be attained from the Ministry for Foreign Affairs (MFA) web pages (http://formin.finland.fi/crosscutting ).

14

Good governance and anti corruption

HEI´s should pay attention to guiding principles of good governance and anti-corruption.10. The effective and efficient use of resources is jeopardised whenever corruption takes place. The MFA expects to be informed accurately and in a timely fashion of each case of potential corruption. For example, financing may be terminated if corruption takes place.

5.2 Actors and key stakeholders

The HEI ICI programme involves five groups of actors with different roles in the HEI ICI process. They are:

- The Ministry for Foreign Affairs, Department of Development Policy (MFA) has the main responsibility for the programme at policy level and financing the programme. It is supported by the regional departments and Finnish embassies, especially in assessing the project proposals.

- The Steering Group (SG) The Steering Group (SG) has an overall responsibility for steering, making recommendations and providing expertise for the implementation and development of the programme; SG has also an important role on securing and strengthening the quality and relevance in the programme. This Group contains representatives for both University and the Polytechnic/Universities of Applied Sciences sectors, as well as representatives from the MFA’s regional departments, the Ministry of Education and Culture (MOEC), and ACU. It is chaired by the ACU.

- Administrative coordination unit (ACU); CIMO (Centre for International mobility and cooperation) is responsible for the administration of the HEI ICI programme. CIMO prepares and organises the guidance for applicants, application calls selection procedures, monitors project implementation and reporting, provides technical and advisory services to the projects in the planning, implementation and reporting phases. ACU organises and provides appropriate communication channels for the programme. ACU reports directly to the MFA.

- The Finnish HEI, in cooperation with partner institutions, bears responsibility for project implementation in accordance with the approved project documents and provides expert advice and support to the planned capacity development activities in the developing partner country/ies.

- The partner country HEI has the final ownership and responsibility for the capacity development, and as the ultimate owner of the project objectives and activities.

The key stakeholders are the ministries responsible for Higher Education in the partner countries as well as the ministries of the sectors in question (such as Ministry of Health, Ministry of Agriculture). Also research institutes, other HEIs and education institutions, and 10 Finnish anticorruption policy; http://formin.finland.fi/public/default.aspx?contentid=209326

15

development partners supporting the particular sectors are important stakeholders as well as the employers and the labour market. The key stakeholders might also include other tertiary education institutions such as technical colleges, vocational training institutes, or NGOs.

In Finland the key stakeholders for the Programme are the Ministry of Education and Culture (MOEC), the Finnish Academy, which coordinates and administers the Development Research funds of the MFA, research institutes as well as other partners engaged in development cooperation. These stakeholders should be kept informed about the HEI ICI programme.

5.3 Eligible applicants and partners Eligible applicants Universities and Polytechnics/Universities of applied sciences operating under the Universities Act (558/2009) and the Polytechnics Act (351/2003) which are entitled to award Finnish degrees are eligible to apply HEI ICI grants in partnership with their partner HEIs in developing countries. The Finnish HEIs must fulfil the following requirements to apply for HEI ICI together with their partner HEIs in the partner countries:

1. The Finnish HEI operates under the Universities Act (558/2009) or Polytechnics Act (351/2003);

2. The Finnish HEI has the right to provide a public civilising service in the field of higher education and has the right to grant higher education degree.

Eligible partners The Finnish HEI is the partner which signs the contract with the MFA and which bears the overall responsibility of the project. There can be several partners from Finland and developing countries, yet minimum is one main partner HEI from a developing country and one main partner HEI from Finland. Universities and Polytechnics/Universities of applied sciences are encouraged to develop joint partnerships. The partner HEIs in developing countries can be Universities, Polytechnics/Universities of applied sciences or their equivalents, which provide public service and have the right to grant higher education degrees in the partner country HEIs are usually public. Private HEIs are not considered as eligible partners and their participation will be assessed case by case.

16

Associate partners Though other partners than HEIs are not entitled to receive funds from the project they may be engaged to benefit and support the capacity development activities of the HEI ICI programme. Inclusion of different types of HEIs, other educational institutions and other possible relevant stakeholders (e.g. civil society actors), in supporting roles, can be considered as an added value in HEI ICI projects. For instance programmes which engage employers and business and other tertiary education institutions such as colleges, vocational training institutes, technical training institutes, community colleges, nursing schools, centres of excellence, distance learning centres, and registered Non-Governmental-Organizations (NGOs) could be beneficial for the HEI capacity development. Research institutes in developing countries which are accredited to issue higher educational degrees can participate in the capacity development supported by the programme. Associate partners are not eligible to receive funding from the project.

Non - eligible partners

Other Finnish or foreign organizations which provide education geared to be equivalent to education provided by Finnish universities or Polytechnics/Universities of applied sciences are not eligible to apply HEI ICI funds. These organizations are not considered as part of state’s education system and thus they are not entitled to the funding granted by the government to universities and Polytechnics/Universities of applied sciences.

Finnish research institutes or trusts are not eligible partners of HEI ICI projects, unless they are directly under administration of an official higher education institution.

6 Evaluation process of project proposals

The project proposals are evaluated in two phases. The administrative coordination unit performs the technical evaluation of the applications, where eligibility criteria are examined. Applications that meet the eligibility criteria will be sent for further qualitative evaluation.

The administrative coordination unit will organize the qualitative evaluation of the project proposals and the timetable for sufficient evaluation. ACU will seek external evaluators who might be members of the AG or other external experts who have proven expertise in the fields of higher education and Development Cooperation. The MFA reviews the ODA eligibility and the relevance for development of the project proposals using regional expertise of the MFA. ACU gathers the evaluations and prepares a proposal according to prerequisite qualification requirements for the Steering Group. AG makes a recommendation of the selected projects to the MFA based on the criteria listed below. Decisions will be made by the MFA based on the

17

Act on Discretionary Government Transfers (Grant/State subsidy) Valtionavustuslaki (688/2001).

6.1 Eligibility criteria The eligibility check is the first step of a two-step evaluation procedure which the project proposals have to pass in order to be considered for funding. The HEI ICI administrative coordination unit performs the technical evaluation of the applications, where prerequisite criteria are examined and organizes the qualitative evaluation before sending the applications to the members of the Advisory Board. The eligibility check is used to assess that

i. The organization is qualified or entitled to submit its application or participate in a tendering/application process.

ii. The application meets the technical requirements specified in the instructions to applicants.

iii. The application meets the requirements of the programme.

ELIGIBILITY CRITERIA Applicants meet the technical requirements and eligibility criteria: 1 Minimum partnership composition requirements. 2 The coordinating HEI is a Finnish HEI. 3 Application has been submitted in time. 4 Application is prepared according to the instructions for applicants. 5 Required mandatory annexes are attached. 6 Project budget is justified, transparent and based on a full cost model. 7 The project application requests funding from the MFA that is between 100 000 – 500

000 euros. 8 Application includes written explanation on how goals of previous projects have been

met if applying for continuation (for projects which have received funding from HEI ICI programme before).

6.2 Evaluation Criteria The qualitative evaluation is carried out by awarding the applications points in an evaluation matrix according to the following criteria. The evaluation criteria are presented below. Relevance

The results, purpose and overall objectives of the project meet the primary capacity development needs of the beneficiaries and partner HEIs and are in line with the policy

18

environment of the project. The project is consistent with Finnish Development Cooperation policies. The need for the project is justified with a reference to (i) national development strategies such as Poverty Reduction Strategies (ii) sector strategies (higher education and field of cooperation e.g. environment, agriculture) HEIs own strategies for Development and/or internationalisation. Complementarity and synergy

The action complements previous or ongoing interventions in the Higher Education sector or in the partner institute. Lessons learned from experiences and linkages with other ongoing/ planned projects and programmes have been assessed and incorporated in the project’s strategy selection. In case of continuation on the ongoing or completed project there is clear explanation for the complementarity and need for continuation.

Sustainability The degree to which the benefits produced by the project continue after the external assistance has come to an end. Preconditions and requirements for sustainability are identified: Issues that influence the financial, institutional, social and environmental sustainability are analyzed and taken into account in the project document.

Feasibility and Effectiveness The objectives (overall objective, purpose and results/outputs) and the programme activities are clearly defined. The project purpose clearly specifies the benefits the target groups(s) will have from the project. The project plan is technically sound and all objective levels have appropriate measurable indicators that can be used to assess the performance of the project and achievement of the project purpose. The project plan also includes a feasible work plan.

Ownership and commitment

The proposal describes how the partner HEI has been engaged in the definition of the objectives, results and activities. There is evidence of the top level commitment, such as financial or resource contribution, to support the project objectives. A sufficient resources budget and human resources are allocated to implement the project and achieve the results. Cost efficient means are selected.

19

QUALITY EVALUATION CRITERIA CRITERIA Scores Scores

1. Relevance 20 1.1. The need for the project is justified with a reference to national development strategies, such

as Poverty Reduction Strategies, and with a reference to sector strategies (higher education and field of cooperation, e.g. environment, agriculture).

1.2. If the project is implemented in one of the Finland´s long term partner countries reference to Country Strategies of MFA is explained.

1.3. Project´s main partners represent HEIs in the least developed countries as defined by OECD. 1.4. The need for the project is justified with a reference to HEIs own strategies for development

and/or internationalisation and/or experiences from previous projects.

1.5. The need for the project is justified with a capacity development needs assessment or other relevant method.

1.6. The project is consistent with Finnish Development Policy. Relevant crosscutting criteria are analyzed and incorporated into the project design and activities.

1.7. Relevance for the Finnish HEI: There is a clear reference to the internationalization strategy of the Finnish HEI.

1.8. The direct and indirect beneficiaries are defined. The selection of these beneficiaries is justified.

2. Complementarity and synergy 10 2.1. Stakeholder analysis is included in the proposal. 2.2. Complementarity and synergies with previous or on-going interventions in the Higher

Education sector or in the partner institute as well as with other Finnish support in the country has been analyzed and taken into account if relevant.

2.3. In case of continuation on the on-going or completed project there is clear explanation for the complementarity and need for continuation.

3. Sustainability 20 3.1. The preconditions and requirements for the financial, institutional, social and environmental

sustainability of the benefits produced by the project after the external assistance have come to an end are identified and analyzed.

3.2. Risks and their mitigation measures are identified. 3.3. Assumptions in the Log Frame Matrix highlight key factors outside the direct control of the

project.

4. Feasibility and Effectiveness 25 4.1. The objectives (overall objective, purpose and results/outputs) and the programme activities

are clearly defined. The project purpose clearly specifies the change and benefits the target groups(s) will have from the implementation of the project. Capacities to be developed are clearly defined.

4.2. All objective levels have appropriate measurable indicators that can be used to assess the performance of the project and achievement of the project purpose.

4.3. A feasible work plan (set of activities) is described. The project purpose and results are realistic and achievable within the proposed time frame and budget.

4.4. Schedule and division of labour among team members is presented. 5. Ownership and Commitment 25

5.1. The proposal describes how the partner HEI has been engaged in the definition of the objectives, results and activities. There is evidence of institutional level commitment and top level support to this project of the Finnish HEI and the partner HEI.

5.2. The capacities of the HEIs to implement the project, e.g. for the financial management of the programme and for backstopping services, are analyzed and defined.

5.3. The capacity of the Finnish HEI and its expertise has been analyzed and meet the needs of the partner institution. Applicants have the professional competence and qualifications required to complete the proposed project.

5.4. Tasks and responsibilities and specific outputs of each expert are defined. The main actors in the project include experienced experts as well as young researchers/professionals.

100

20

6.3 Publication of the selection results

Administrative Coordination Unit notifies all the applicants of the selections and the reasoning behind the decisions. Administrative coordination unit assists the MFA in informing the results and sends the contracts to coordinating HEIs for signatures. After both parties have signed the contracts the project implementation can begin.

21

PART II HEI ICI Projects

7 Roles in project management (Key experts, Project board, and Coordinators)

Key Expert

The project needs a management and decision-making system with clearly defined roles and responsibilities for all participating HEIs. The Key Experts from all organizations and their tasks and duties should be described in the project document. A Key Expert is an Expert from the participating HEIs in Finland and in the partner country who will provide an input of more than 10 days during project implementation. Expert engaged less than 10 days do not need to be presented with a biography but they should be introduced in the project document. Each Key Expert verifies that he/ she has the required expertise and experience and that he/she is available and committed to the tasks as specified in the paper.

Project Board

The decision-making authority in the project should be vested with a Project Board that consists of representatives of cooperating HEIs, and of important stakeholders if deemed necessary and beneficial for the project. The Project Board should be chaired by a developing country HEI. The members, responsibilities and meeting arrangements of the Project Board should be defined in the Project Document. The key function of the Project Board is to monitor how the project is proceeding and to support the cooperating HEIs in carrying out the activities. The project board is obliged to take actions in case there is a risk of the stated objectives of the project not been adhered. The board can also decide on the termination of the project with the consent of ACU and MFA.

The Project Board will approve the programme document and the reports before they are submitted to the administrative coordination unit, which further submits reports to the MFA. The project application should include a budgetary provision for the Project Board meetings.

Coordinator

A person from each participating HEI is nominated as a Coordinator. These persons ensure that the activities are implemented as planned. The Coordinator of the Finnish coordinating HEI is the contact point for the MFA and Administrative coordination unit.

22

8 Instructions to Applicants

8.1 Preparing a HEI ICI Project A HEI ICI project is a partnership project of Finnish HEIs and HEIs in developing countries. The HEI ICI project process begins with an initial contact between the Finnish and developing country HEIs. The developing country HEIs, in cooperation with the Finnish HEI, prepares the project document. A project needs a clear focus and clear measureable objectives. It is advisable to allocate sufficient time and human resources for the planning and preparation of the project and to allow cooperating partners to strengthen relationships. Video- and internet-based conferences may be utilized to take advantage of the efficiency of modern communication technology. The preparation process includes studying relevant documentation, identification of capacity development needs, stakeholder consultations, joint planning process, and writing of an application. Projects should be planned and implemented according to good governance and administrative procedures. Finally, it is the duty of the coordinating Finnish HEI to combine and collect all the documents and submit them to ACU according to detailed guidelines via the online application system. More detailed instructions and timetable will be published in the HEI ICI web pages (www. http://www.cimo.fi/heiici) before each application round. In case there is an MFA country strategy for the country in question, a reference should be made to this document which implies potential synergies and complementary with other development cooperation activities. Sources for further guidance on project design and implementation

Information source Purpose

Ministry’s website:

http://formin.finland.fi/developmentpolicy/Finland http://formin.finland.fi/developmentpolicy/consultants

- Provides general information on development policy and cooperation including thematic and geographic strategies.

- Supplements the Manual and provides instructions, model documents, and thematic guidance, like crosscutting objectives

23

European Commission: ec.europa.eu/europeaid/infopoint

http://ec.europa.eu/europeaid/multimedia/publications/publications/manuals-tools/t101_en.htm

http://ec.europa.eu/europeaid/how/index_en.htm

European Commission’s Project Cycle Management Guidelines.

OECD/DAC:

www.oecd.org/dac

Information on Aid Effectiveness principles and Evaluation guidelines and criteria. Provides also information on aid statistics and thematic areas.

8.2 Public call for applications The Ministry for Foreign Affairs publishes an open call for HEI ICI proposals biennially. Information and the details for the application round will be delivered and published through the Administrative coordination unit (CIMO). Detailed information and instructions about the call, as well as access to the application system can be found in the website of the Administrative coordination unit at www.cimo.fi/heiici (and in the website of the Ministry for Foreign affairs www.formin.fi). The Administrative coordination unit will circulate the call for proposals to University and Polytechnic/Universities of applied sciences network (UNIPID, PINNET) and through other appropriate channels such as the Ministry of Education and Culture and the embassies of the countries concerned. The Administrative coordination unit may also inform the HEIs in the partner countries through appropriate channels.

Detailed submission method of applications, process and schedule are presented in a public announcement. Decisions will be made by the MFA based on the Act on Discretionary Government Transfers (Grant/State subsidy) Valtionavustuslaki (688/2001).

8.3 Application documents The HEI ICI application consists of the following documents: Online application form

Online application form includes basic information of the project. Detailed instructions and online application form, as well as access to the application system can be found in

24

the programme website; http://www.cimo.fi/heiici. Application form is supported by a set of mandatory annexes.

Logical Framework

The Logical Framework Approach (LFA) is a tool that can be used for analyzing development problems and for planning projects. Logical Framework describes the implementation strategy and logical linkages of the objectives, indicators, activities of the HEI ICI project. The Ministry for Foreign Affairs of Finland follows to a large extent the LFA practices of the European Commission. HEI ICI projects should describe the implementation strategy and logical linkages of the objectives, indicators, activities using the LFA. (ANNEX 1)

Project Document

The project document is the project’s strategic management tool. It provides the basis for results-based cyclic planning and for monitoring/evaluation during project implementation. Therefore, the outputs and activities are defined only on a rough level whereas the objectives and expected results are defined in detail with related indicators. The intended beneficiaries and other stakeholders are defined in a disaggregated manner, and participation arrangements, distribution of contributions and benefits are described in detail. The outputs and activities are defined in detail in the work plans during implementation.

The partnering HEIs prepare a Project Document where the project environment, the project, its objectives and implementation strategies are described. The project objectives are drawn from the capacity development needs of the partner HEI in the developing country. The HEI ICI application and project plan should be prepared with realistic objectives which can be achieved during the project period. Too unrealistic or general objectives should be avoided. (ANNEX 2)

Work plan

The development of main outputs should be clearly described in the project work plan. In the course of monitoring, the projects will have to report on the progress of delivering these main outputs.

An overall HEI ICI work plan is annexed in the Project document and presented in the Log Frame. This plan will be then broken down into more detailed tasks in annual work plans. For example, the activity "training” can be broken down into "curriculum preparation", "training of trainers", "material preparation", "learning outcome assessment", and "follow-up". In an annual work plan more detailed tasks for which

25

timing and required resources are specified. Operational responsibilities are further elaborated. The work plan is presented together with a budget which details the delivery of means. The preparation of the annual work plan should take place as a consultation between the participating HEIs. The annual work plan is approved by the Project Board. Since projects need to follow the calendar year as their fiscal year, the annual plans should cover the following calendar year. If the project duration is just one year, no separate annual plan is needed. In such case the project document should contain sufficient information and it serves as the annual plan. An example of a work plan format is presented in (ANNEX 3)

Presentation of Key Experts

A short Biography (maximum one A4 per Expert) is attached explaining the experience and expertise of the expert in relation to the identified capacity development needs. This bio also outlines the tasks and key deliverables of the expert in the project as well as expected inputs (working days, missions etc.). In case there is a need to change an expert during project implementation, the required qualifications of the experts should be determined NO CVs OF THE EXPERTS ARE ATTACHED IN THE APPLICATION. (ANNEX 4)

Memorandum of Understanding (MoU)

If the Project Document is co-signed by all partners, the Memorandum of Understanding (MoU) is not a necessary annex in the project document when applying. However, MoU will be signed by all partner institutions after the funding proposal has been accepted. It is advised to submit this document at the earliest possible state. (ANNEX 5)

Project Budget

See instructions in paragraph 8.5. A Template for the project budget is annexed. (ANNEX 6)

8.4 HEI ICI Project funding

A number of legislative changes and reforms have been going on in national financial administration in recent years. The most important reforms have been the introduction of the full cost model (2009) and the new Universities Act (2010).

26

Funding in the HEI ICI programme is based on the Act on Discretionary Government Transfers (Grant/State subsidy) Valtionavustuslaki (688/2001). HEI´s receiving financial support must observe the obligation laid down in the Act on Public Contracts (348/2007) when sub-contracting or in procurement.

Projects and their activities for which the MFA grants support through the HEI ICI programme have to be in accordance with the general principles regulating Finnish development co-operation.

The budget of the project should be drawn up for the entire duration of the project. The duration of the project may be from one to three years. The budget of a HEI ICI project must fall between 100 000– 500 000 euros. The budget of the projects must follow the full-cost model. Projects must be planned on a not-for-profit basis and be fully transparent.

As a rule resources should be targeted and used for the most part in partner countries. Costs incurred in the partner country are to be presented separately in the budget.

The coordinating Finnish HEI is responsible for the financial management of the project and it needs to make funds available for implementing certain activities to the partner HEIs. Items of expenditure are reported in the financial report with the same budget lines as the budget is approved.

All HEI ICI projects must have min. 20% of self-financing. Applicants make the budget which covers funding for entire project duration (100%), since MFA funding can only cover a maximum of 80% of the project as a whole. Projects are requested to give an overall cost estimate and a funding plan for the project.

FUNDING FROM MFA (max. 80%) + SELF FINANCING FROM HEIs (min. 20%) = TOTAL BUDGET (100%)

Projects can use HEIs own basic funding and/or external funding to cover the self-financing costs.

HEI ICI projects cannot produce a profit or have subsidised effect to HEIs with funding from MFA. Projects cannot apply or receive other public funding for implementing this HEI ICI project in question.

Acceptable Costs for HEI ICI project can occur only after the project document has been approved. Costs due to planning or writing of a project proposal or document may not be included in the budget.

8.5 Cost Items

The budget is presented in euros (€) and it is broken down by 1) calendar year, 2) by project results/ or components if applicable, and 3) by the following cost items:

27

A1 Salaries and fees of Coordinating Finnish HEI expert A2 Salaries and fees of Partner HEIs A3 Travel costs A4 Services (including subcontracted work assignments) A5 Overhead costs of Coordinating Finnish HEI B1 Direct Administrative costs of Finnish HEI B2 Administrative costs of Partner HEI(s) C Fixed Assets D Contingency costs

A1 Salaries and fees of Coordinating Finnish HEI Expert

The HEI ICI project may include salaries of the Finnish HEI Experts. The salaries of the Finnish HEI Experts comprise the real gross pay of the project member multiplied by an indirect employee cost (personnel cost-coefficient or equivalent). Only costs directly related to the execution of the project activities may be included.

The HEIs must use permanent staff or staff recruited for the purpose of carrying out the assignment and persons in expert roles should in general have a long-term commitment to the HEI in question, in order to ensure continuity and to ensure utilization of knowledge and experience and institutionalization of practices. The level of salaries must be based on the set salary costs for a similar position of the participating HEIs, and based on normal country rates on the official table applied by Finnish state institutions.

Applicants give the percentage for indirect employee costs and the overheads percentage (A5) applied by their own HEI at the time of application submission. Calculations in accordance with the full cost model rely on these coefficients. Applicants shall check these coefficients from the administration department at their own HEIs. The coefficient for effective working hours - % is included in the salary costs. The coefficients remain same throughout the whole project duration.

A2 Salaries and fees of Partner HEIs

Partner HEIs in this cost item refers to non-Finnish HEI Partners. In general, the partner HEIs take responsibility for their own labour costs and salaries and should appoint staff and allocate enough time to carry out the capacity development in the project. However, in case that a significant amount of additional work is required by the project, the local experts’ fees can be included in the budget.

28

There must be a clear need for such extra work and the financing conditions and amount must be in accordance with the national/ institution’s remuneration policy and it must be approved by the Project Board. Top ups on salaries should be avoided.

Southern partner budgeting shall be based on actual costs. Each task needs to be explained and justified in the project document and the fees paid against time records, reports or other deliverables. The payments should be made through the official accounts of the partner HEI based on invoices which will include time records and verification of completed work and agreed deliverables by the local Experts.

Capacity development of an individual as such (e.g. grant for a separate research project) is not possible in the HEI ICI programme. However, support to post-graduate students/ studies may be provided on the following condition: (i) the student is enlisted in a post-graduate programme in the partner HEI in the developing country and (ii) the person receiving the grant is in a position equivalent to staff, and (iii) the programme is directly part of the HEI ICI project and it contributes to the achievement of the objective of the HEI ICI project. Inclusion of the grant must be justified as part of the capacity development of the institution in a Developing country. Decision on such finances is made case by case by the Advisory Board.

In cases where developing partner country HEIs’ salaries are compensated, it is the responsibility of the coordinating Finnish HEI to investigate whether an employer relationship is created. If such a relationship is created, the coordinating Finnish HEI must ensure that employer responsibilities and possible costs resulting from such a relationship are taken care of.

A3 Travel costs

This cost item includes travel and accommodation costs and daily allowances of all Coordinating Finnish HEIs and Partner HEIs (both from non-Finnish Partners and from Partner Finnish HEIs).

The budget details the travel costs to be paid to the Finnish and partner country experts. Travel costs include costs for international travel, local travel, and lodging/accommodation and daily allowances. The names and tasks of people travelling must be described more precisely in project plan. The level of travel costs shall follow the Finnish state travel rules (valtion matkustussääntö, State Travel Regulations, which are updated annually and available in the web page of the Ministry of Finance in Finland http://www.vm.fi). Per Diems for capacity development related trips to Finland will be paid in accordance with the Finnish Travel regulations as follows:

The level of per diems for the Finnish Experts shall be based on the official table applied by Finnish state institutions.

29

Per diems for the partner country experts working in the partner country are paid according to the partner country regulations, and for work and travel in Finland according to the Finnish travel regulations. The partner HEIs must provide information about the travel regulations in their country.

For longer visits a travel grant should be considered according to the regulations as applied in the North-South-South programme (CIMO).

A4 Services (including subcontracted work assignments)

Out-sourcing or sub-contracting is not preferred because generating sustainable results can best be made by using permanent staff. Thus, persons in expert roles should in general have a long-term commitment to the HEI in question, in order to ensure utilization of knowledge and experience of the HEI in question and to ensure institutionalization of knowledge and practices. In principle, consultants may not be used. However, if, on an exceptional basis, the need to use consultants (either in Finland or in partner country) becomes necessary, the need for such service has to be specifically justified in the Project Document and the HEIs have to reach an agreement with the ACU/MFA.

The main assignments may not be passed further to external agencies unless deemed necessary for the achievement of the project objective. These assignments must be planned to directly support the institutional development of partner country HEIs. The Project Board will request an approval for procuring the Expert service from the Administrative coordination unit. The Public Procurement Act (348/2007) shall be applied to such subcontracting, both in Finland and also in the partner country.

In case there are one or more Finnish HEIs as partners in the project, all the salaries and fees paid to the Finnish partner HEIs should be marked in project budget as subcontracted work assignment.

The budget line for outsourcing and subcontracting shall include sufficient resources for key services like interpretation and translation. Also the auditing which is conducted by an external, authorized auditor should be budgeted under outsourced activities. The purpose of the auditing is to verify that the programme financial management is conducted according to the general auditing rules and regulations and that the programme and funds are used in accordance with the agreement between the financiers and the implementing organization. The auditor must be an independent from the audited organization.

A5 Overhead costs of coordinating Finnish HEI

Calculations in accordance with the full cost model rely on coefficients: Percentage for indirect employee costs (Applies to A1 item costs) and percentage for the overheads (Applies to A5 item costs). Direct costs of project cannot include such costs which are already budgeted in

30

overheads. Applicants shall check these coefficients from the administration at their own organization.

B1 Direct administrative costs of Finnish HEI

In general, all administrative costs of Finnish HEIs should be included in the overhead costs or subcontracted assignments. In case there are some administrative costs that are not included in full cost model overheads they can be marked into direct administrative costs of Finnish HEI. In order to avoid double funding the coordinating Finnish HEI is asked to check overheads from their own institution.

B2 Administrative costs of Partner HEIs

Administrative and technical costs of the partner country HEIs may be used by the partner HEI to cover costs, which arise specifically from the project management (excluding salaries), i.e. project accountant cost, seminar costs or other administrative costs directly relating to project implementation.

C Fixed assets

Fixed assets can be procured for the developing country HEIs. As a general rule, procurements shall be made in developing partner countries based on procurement regulations in the country of procurement. Explanations must be provided for any possible procurement made in Finland.

At the end of the project, the fixed assets will remain the property of the institution for which it has primarily been procured for and which has used it. The Finnish HEI must ensure that they are recorded as the partner HEIs property and that maintenance of fixed assists after the project funding is ensured. (Please note the rules relating to this: Act on Discretionary Government Transfers (Grant/State subsidy) Valtionavustuslaki (688/2001).

D Contingency costs

A maximum of 10% of the total costs can be left unallocated in the planning of the project as contingencies. Utilization of the contingency funds must be decided by the Project Board. Contingency costs can be reallocated to all other cost items but in the salaries of the coordinating Finnish HEI.

31

9 Project implementation

9.1 Financial management of a project The coordinating Finnish HEI is responsible for the financial management of the project and it needs to make funds available for the task implementing certain activities to the partner HEIs. Items of expenditure are reported in the financial report with the same budget lines as the budget is approved.

The financial report will compile the costs incurred during the reporting period and divided according to the budget classification. Costs have to be actual, accrued costs (i.e. verifiable and acceptable costs) caused by the carrying out of the activities of the project. Costs have to be reported during the same calendar year.

A prerequisite for reporting and monitoring is bookkeeping. This must be organised so that the project expenditure and costs are transparent and easily verified from the records. The project is an individual cost object in the HEI's cost accounting.

9.2 Reallocations within the budget during implementation The Finnish HEI may, in agreement with the partner HEI(s) and the project board, make minor reallocations of funds between budget items within the limits of the overall project budget (max 10 % of the total project budget). Reallocations which cannot be considered as minor in character are always subject to mutual agreement between the cooperating HEIs and negotiation with the MFA assisted by the administrative coordination unit. Such reallocations must be agreed upon in writing, prior to changes being made.

Proposals for such reallocations must be submitted to the Administrative Coordination Unit in written by the Project Board. The ACU will assess the suggestion and inform and/or consult the MFA on the proposed changes. This application must be made well in advance and it must be made in written form. These changes are also reported in the annual report with a reference to the decision made by the ACU or MFA.

9.3 Risks and risk management

Development cooperation takes place in a high risk environment. There are always risks which hamper or prevent the attainment of the intended results and impact. Therefore, the element of risk must be tolerated. It is important to recognize the risks, make them visible, explicit, and part of the decision making and monitoring process. Successful risk management is always a shared endeavour between the donors and the partner. Risk assessment is not

32

only an entry-level decision tool but also an essential part of monitoring. The nature and level of risk tolerated needs to be continuously considered, as well as mitigation measures.

The Log Frame includes assumptions of external factors that might influence in the implementation of the project and achievement of its objectives but which cannot be influenced by the project. The realization of these assumptions is followed –up and reported in annual reports. If they do not materialize, mitigation measures and alternative models are needed.

The Log Frame includes assumptions of external factors that might influence in the implementation of the project and achievement of its objectives but which cannot be influenced by the project. The realization of these assumptions is followed up and reported in annual reports. If they do not materialize, mitigation measures and alternative models are needed.

In case there is a risk of the stated objectives will not be adhered the project board is obliged to seek alternative methods. The project board can also decide on the termination of the project with the consent of ACU and MFA.

A risk analysis is an important part of the project document. It includes issues which may hamper the implementation of the project and achievement of its objectives. A risk analysis identified in advance measures how the project will deal with them and mitigate their impacts.

9.4 Intellectual Property Rights

Under intellectual property law owners of intangible assets are granted rights to decide on the use of the assets and/or get remunerated for their use. Intellectual property is usually divided into copyrights (including related rights) and industrial design rights.

It is for everyone’s benefit that the material produced with development cooperation funds is available for every stakeholder. It functions as a tool to achieve mutual goals such as eradicating poverty.

In HEI ICI programme the intellectual property rights belong to MFA and related stakeholders. Protecting intellectual property, for example with a patent, requires written consent both from MFA and the stakeholders. All material produced during the project must be publicly available without separate consent from MFA or the stakeholders.

Should any questions rise regarding to intellectual property rights, higher education institutions are asked to contact the ACU/MFA.

33

9.5 Extension and continuation of a project

When applying for a new project or continuation for an existing one, the following is taken into account:

- Extension for the project to achieve its objectives cannot be guaranteed. - The new project must show the need and added value of the new project period. - The performance of the earlier project or phase must be good, that is the project

objectives have been achieved, reports are of good quality. HEIs are encouraged to use external evaluators and peer evaluations to assess the performance of the project and the need for the new project.

10 Monitoring and Reporting Monitoring is “a continuing function that uses systematic collection of data on specific indicators to provide management and the main stakeholders of an ongoing development intervention with indicators of the extent of progress and achievement of objectives and progress on the use of allocated funds” (OECD/DAC).

Systematic and regular monitoring ensures that the project becomes a learning process. Monitoring is an integral part of project operations. Monitoring should focus especially on achievement of the objectives and results. Also assumptions are subject to monitoring; in case assumptions are not met the project approach may need to be revised. Naturally, also the implementation of activities and budget are subject to monitoring, but reporting should focus mainly on achievement of objectives/results. The lessons learnt from monitoring – especially deviations from the plans – are discussed within the project’s management and decision making structures. Findings of monitoring are fed into the next cycle of planning and implementation, as a continuous process (sometimes called rolling planning). High-quality baseline data based on smart indicators is a cornerstone of the monitoring system. In order to ensure learning between monitoring reports and work plans, same results-based structure should be applied in these two documents.

Progress and financial reporting take place as defined in the contract between MFA and coordinating institution. Reports are signed by the main partner HEIs and the Project Board. Timesheets or equivalent records of working hours of project personnel must be attached to the reports, in addition to other necessary follow-up documentation. The annual reports as well as completion reports include financial reports which are submitted to the administrative coordination unit (and by them further to the MFA) as a prerequisite to payments.

34

Reports should focus on how the project’s objectives have been met, what kind of impact it has had, and if the expected results have been achieved. In addition, any major deviations from plans should be reported. In such cases, the reasons for such deviations, their impact, and corrective measures should be briefly described.

The administrative coordination unit will, if needed, request further information or clarification from the reporting HEI. Follow-up on project-level reporting is within the scope of responsibility of the administrative coordination unit, who reports back to the MFA on progress as a whole.

A prerequisite for reporting and monitoring is bookkeeping. This must be organised so that the project expenditure and costs are transparent and easily verified from the records. The project is an individual cost object in the HEI's cost accounting.

If during the implementation arises a need in to transfer more than 10% of funds between budget items, a request must be sent in writing to the Administrative coordination unit who will consult the MFA and also reply to the request.

10.1 Annual progress reports

Annual progress report + Financial Interim Report describe the progress of a calendar year against the (i) annual plan and (ii) programme objective. A template for the Annual Report is annexed in this document (ANNEX 8 + 9).

Progress of the project should be reported against the agreed performance indicators which are presented in the Log Frame. They provide essential information for the project decision-making body to make changes or adjustments to the project plans and operations if considered necessary. Reports also provide a useful record for accomplished activities.

The annual report must show clearly how the programmed resources have been used and whether their use corresponds to the aims set out in the PD and the annual plan drawn up at the beginning of the year. This information is needed for financial estimates.

Reports are discussed and approved in the Project Board. Annual Reports should specify if significant changes need to be made in the project operations.

Annual Progress reports are sent to the Administrative coordination unit. A delay in reporting or neglect to report may lead to interruption of future disbursement and rejection of further support. In case the start of the project has been delayed or there has been significant deviations from the work plan the reasons for these should be described in the report.

The financial report will compile the costs incurred during the reporting period and divided according to the budget classification. Costs have to be actual, accrued costs (i.e. verifiable and

35

acceptable costs) caused by the carrying out of the activities of the project. Costs have to be reported during the same calendar year.

10.2 Completion report

The completion report + Financial Report describes the achievement of the objectives and analyses the general performance of the project. A template for the Completion report is annexed in this document (ANNEX 10 + 11).

A completion report is the final report of the project and it includes an assessment of the results and effectiveness of the project as well as analyses on lessons learned. The following issues should be highlighted in the completion reports:

Effectiveness of the project: Has the project objective been achieved? In reporting about the effectiveness, please use the indicators form, i.e. the Log Frame. What have been the contributing factors to the success of the problem? Have there been any problems which have hindered the effectiveness of the project? How these problems have been dealt with? Lessons learned?

Impact: What are the impacts the project has made in the performance of the project beneficiaries and project organization and implementation environment? How are these impacts verified? Have there been any unintended positive or negative effects? How did the project affect the position of women and disadvantaged groups? Are there any impacts foreseen after the project comes to its end?

Sustainability: Are the project results sustainable? On what financing, institutional etc. conditions can the partner HEI sustain the results of the project? What are the main risks related to sustainability? Are some remedial measures still needed to ensure sustainability? Wider applicability of the results: What are the lessons learned?

The completion report is prepared jointly by the cooperating HEIs and approved by the Project Board, before sending to the administrative coordination unit. The completion report describes progress made in the project against the project objectives and the expected results. Its format follows roughly the Project Document format while the financial reporting follows the headings of the project budget which is annexed to the project document. The final annual report is written like a completion report and describes the total achievements of the project.

The projects are required to keep books for fixed assets (fixed-assets register) and procured assets are tagged to the project. When the project is completed, fixed assets are handed over to developing country partner HEIs. All fixed assets procurements must be documented.

36

11 Evaluation

The partnering HEIs monitor the implementation of the project and quality of its outputs. Information which is collected during the monitoring is presented to the Administrative coordination unit who will compile the information in a comprehensive HEI ICI programme report. It is important to note that the HEIs must report not only completion of activities on the achievements but also analyse the process towards achieving the objectives in the annual reports. The realization of assumptions must also be reported as well as possible deviations from the work plan and corrective measures.

The MFA and Administrative coordination unit will follow up the implementation of the HEI ICI projects through projects reporting, consultations or field visits. The monitoring information is reported to the Steering Group and incorporated in the annual HEI ICI reports.

The HEIs are encouraged to use evaluations (external or self-evaluations) to track the outcomes and the quality of the deliverables. An external evaluation is preferred particularly if a new phase for a project is applied to provide an outsider’s view on the achievements and relevance of the extension. The costs of this evaluation must be included in the budget under outsourced activities. It is recommended to include independent evaluators from both countries to do such an evaluation.

37

Annexes

ANNEX 1 Project Document

ANNEX 2 Logical Framework Matrix

ANNEX 3 Project Work Plan template

ANNEX 4 Presentation of Key Experts template

ANNEX 5 Memorandum of Understanding template

ANNEX 6 Project Budget template

ANNEX 7 Financial Interim Report template

ANNEX 8 Annual Progress Report template

ANNEX 9 Completion Report template

ANNEX 10 Financial Completion Report template

ANNEX 11 Auditing guidelines for the auditor in partner country HEI

38

ANNEX 1 Project Document

Higher Education Institutions Institutional Cooperation instrument

HEI ICI

PROJECT DOCUMENT

(10-20 pages plus annexes)

(NAME OF THE PROJECT)

(date)

Submitted by (name of the partner HEI)

in cooperation with

(name of the Finnish HEI)

(Signature of authorised representative of the Finnish HEI) (name) (title) (date) (Signature of authorised representative of the partner HEI) (name) (title) (date)

Contacts:

(name, e-mail, phone)

39

The following issues are recommended to be included in the PD:

1. Background and justification Describe the pre-project situation. Give information on the needs, objectives and strategies of the partner HEI (or the section/unit

when applicable). Why is the project needed? What are the specific needs of the partner HEI (beneficiaries) that the

project will respond to? Justify the relevance of the project in relation to the objectives of the partner HEI. Who is the “owner” of the project?

What are the specific skills and knowledge of the Finnish HEI that will be used to improve the capacities of the partner HEI?

Give information on the resources and the responsibilities of the participating HEIs for cooperation – who does what? In what way are the participating HEIs committed to the cooperation?

Give information on the stakeholders – what are their expectations? Give a brief history of collaboration (and of previously funded networks in particular; how

collaboration has worked; lessons learnt) Describe the nature and manner of planning for the proposed project. To what extent have the

partners been involved in the planning?

2. The objective of the cooperation and the approach Describe the desired situation to be achieved through the capacity building efforts. Define 1-2 qualitative or quantitative indicators for the objective. How can the change be

measured? What are the sources of verification for the indicators?

3. The expected results and activities The project implementation can be divided into 2-3 components/result areas. Define concrete services and products that the project is going to produce and deliver to the

project beneficiaries. Name major activities that are to be implemented to produce the results.

4. The relation of the proposed activities to the activities of the partner HEI How much partner agency resources will be needed to implement the activities? Name the exact

commitments in terms of officer time, backstopping services, office facilities, transport. Make a comparison to the normal activities of the HEI. How will the expected changes be visible in the functioning of the partner HEI? Are there any other financiers working with the partner HEI? If yes, what activities are they

funding? If the project is part of a larger programme, describe the relationship clearly.

5. Time schedule Use a calendar to write down when the activities are going to be implemented and by when the

results will be produced. Write down the activities per calendar year. Synchronise the schedule with the budget.

6. Sustainability and perceived risks

40

Assess the sustainability of the proposed cooperation. Is the scale of the activities appropriate? Will the partner agency have sufficient resources after the project to continue the started capacity development without any further external support?

Analyse any possible risks (project external factors) that might affect the achievement of the objective and the production of the results.

7. Project organisation Write down key personnel participating in HEIs leadership and capacity-building functions. Define the responsibilities of the parties. Define the members of the Project Board.

8. Budget Detail the budget per calendar year. Break down the overall costs – use the budget form (annex 4). Break-down the costs into major result areas. Check that enough working time has been allocated for participating HEIs.

9. Other issues Any other relevant issues with regard to the sector, participating HEIs, project environment, etc.?

41

ANNEX 2 Logical Framework Matrix Overall Objective Indicators Sources of verification Assumptions The overall objective describes the long-term development goal to which the project makes a contribution. It can be derived from sector policies or Poverty Reduction Strategy papers. The overall objective defines the desired improvement from the point of final beneficiaries.

Clear measurable indicators which will track the achievement of the Overall Objective.

Where will be data on the specific indicators will be drawn from? Please note that baselines are needed.

NO ASSUMPTIONS AT OVERALL OBJECTIVE LEVEL

Project Purpose Indicators Source of verification Assumptions/ Risks

The project purpose states the immediate objective the project has to meet , i.e. the improved situation. Please check that there is logical a relation between the project purpose and the overall objective.

Quantitative and qualitative indicators which verify and measure the project outcomes. These indicators operationalise the objective and are needed particularly in the Completion Report.

Where will be data for tracking the indicators be drawn from? Is there any baseline available?

External issues beyond the project control that influence the achievement of the project ‘s overall goal. How are these assumptions dealt with?

Results Indicators Source of verification Assumptions/ Risks

Results are concrete issues produced by the project which need to be produced in order to achieve the project purpose. Please note, results are not only physical outputs but a start to enjoyment of sustainable benefits.

Quantitative and qualitative indicators which verify and measure the achievement or delivery of results.

From where data to track the indicators will be drawn. Is baseline available?

External issues that influence the implementation of the project implementation and achievement of the project purpose which are beyond the project control; how these assumptions are dealt with.

Activities Means Budget Assumptions and Risks Activities describe what will be done to deliver the expected results. In the project plan, activities are expressed as processes which will be broken down into more detailed tasks in annual work plans. For example, the activity "training " is in work plans broken down for instance into "curriculum preparation", "training of trainers", "material preparation", "learning outcome assessment", and "follow-up ".

The means (including inputs) are human resources and other resources required to carry out planned activities. They may be classified as follows: personnel, materials and supplies, procurement; travel; services, time allocation and other possible means. Means are defined accurately, so that reliable budgeting is possible. Means are defined for both Finnish HEIs and partner HEIs.

Budget is calculated by estimating the costs of required means (inputs). The instructions for calculating the expenses are presented in the HEI ICI instructions to applicants.

Issues that may influence the realisation of the results and which are beyond the control of the project; how these assumptions are dealt with.

Preconditions, which must be in place before the project implementation can start.

42

ANNEX 3 Project Work Plan template

ANNUAL WORK PLAN

<PROJECT NAME>

Prepared by:

<Finnish HEI, name of the person, contact information>

<Partner HEI, name of the person, contact information>

Signature of the responsible person(s):

<name>

<place and date of the signature>

Approved by <project board/cooperating HEIs>

Place and date:

43

ANNUAL WORK PLAN FOR CALENDER YEAR

Period:

1. MAIN ACTIVITIES DURING THE YEAR

Concrete description of tasks and activities and related linking to expected results. Any deviations from the original Programme Document should be mentioned here. Deviations creating additional costs are usually funded from contingencies.

2. PLAN FOR EXPERT WORKING DAYS

Working teams, expert working days, travels, justification for the task

3. PLANNED PURCHASE OF EQUIPMENT OR SERVICES

Equipment or service, justification for purchase, estimated price

4. NEED FOR CONSULTATION WITH ADMINISTRATIVE COORDINATION UNIT OR WITH THE MFA

Description of the needed consultation

5. OTHER REMARKS

44

ANNEX 4 Presentation of Key Expert’s template

Presentation of Key Expert’s template

Name of the proposed Expert

Institution Position Educational background

Brief description of the work experience in general

Specific expertise and skills

Specific expertise in relation to the identified capacity development needs

Experience in development projects and development work

Specific mandate and role in the project and related tasks

Key deliverables (e.g. trainings, materials to be produced) and tasks

Work Plan Number of days (field mission, office days) Schedule

I confirm that the information above is correct and that I am available and committed to carry out the tasks and deliver the outputs as specified in this document. Signed by the Expert Date

45

ANNEX 5 Memorandum of Understanding template

Template for MoU between Finnish and development country HEIs

(This is a tentative model for the MoU. If the Project Document is co-signed by all partners and not only the main partners, the MoU is not necessary when applying funding. However, it will be obligatory to send it to the administrative coordination unit after approval of the project document and before the first payments. The MoU should be modified suitable for project purposes and to suit to any country context. The phrases in square brackets should be replaced with relevant wording.)

Memorandum of Understanding ("MoU")

between

[name of the developing country partner HEI] (hereinafter "[Abbreviation A]") in [partner country]

and

[name of the Finnish partner HEI] (hereinafter "[Abbreviation B]") from Finland

regarding the

[Project name] (hereinafter the Project)

The Ministry for Foreign Affairs of Finland has assigned an institution [Abbreviation B] as the responsible HEI to manage the Finnish share of the project financing. The assignment is based on contractual arrangements (annex) and a Project Document, including a budget and the Presentation of Key Expert’s template (annex).

The general terms for development cooperation between Finland and [partner country], as specified in [reference to name of the bilateral agreement], [dated], shall be applied.

[this clause to be included if bilateral agreement exists and can be referred to]

1. COMMITMENTS OF [Abbreviation A]

1. Provision of all necessary support for implementation of the Project, including encouragement of other partners to participate in its implementation;

2. Implementation of the Project as set forth in the Project Document (see Annex 2); 3. Coordination of Project implementation with [Abbreviation B]; 4. Ensuring sufficient human resources for the implementation of the project as

described in the project document; 5. Incorporation of the financial resources needed for Project implementation in its

institutional budget;

46

6. Monitoring of the progress of the Project with [Abbreviation B]; and 7. Preparation of Project implementation progress reports with [Abbreviation B] and

their submission to the MFA of Finland.

2. COMMITMENTS OF [Abbreviation B]

1. Provision of all necessary support for the Project implementation, including encouragement of other partners to take part in its implementation;

2. Assurance that any goods acquired within the Project framework are procured based on Finnish Procurement legislation;

3. Implementation of the Project as set forth in the Project Document (see Annex 2); 4. Coordination of Project implementation with the [Abbreviation A]; 5. Allocating personnel to work in the Project; 6. Monitoring of the progress of the Project established and coordinated by the Project

Board; 7. Incorporation of the financial resources needed for Project implementation in its

budget; and 8. Preparation of Project implementation progress reports with [Abbreviation A] and

their submission to the MFA of Finland.

3. ADMINISTRATION, FOLLOW-UP AND MONITORING

1. A Project Board will be set up for the Project management and monitoring. It is coordinated by [Abbreviation A] and [Abbreviation B]. It will meet [how many times/how often] during the Project duration. The Project Board representatives are the following [names/institutions, alternates if appropriate].

2. The Project Board will receive Project follow-up and progress reports, decide on possible changes in the budget within its assignment, approve annual plans of operation and budgets.

3. The Project monitoring and evaluation mechanisms will be decided in the Project Board. The Project may be subjected to monitoring by the MFA of Finland.

4. Project implementation is governed by the principles and rules set forth in [Partner country legislation] regarding the staff of [Abbreviation A] and Finnish legislation regarding the staff of [Abbreviation B]. The other personnel needed for the implementation of the Project is procured observing the provisions of Finnish procurement legislation.

5. The management of the Project funds will comply with the professionally accepted bookkeeping rules and practices. The participants ensure that no illegal or corrupt practices relate to the use of the Project funds. All possible corruption cases need to be reported to the relevant authorities.

4. FINANCIAL MANAGEMENT

1. [Abbreviation B] is responsible for the financial management of the project. [Abbreviation B] is represented by [B person's name1] or [B person's name2) in signing for the costs caused by the Project implementation. The Project account numbers and details are disclosed in the Project report.

2. The Project account and Project operations may be subjected to an independent audit when requested by the MFA of Finland.

47

5. MODIFICATIONS

Any modification of the terms contained in this MoU will be effective only if decided upon in writing between the [Abbreviation A] and the [Abbreviation B].

6. RESOLUTION OF DISPUTES

In case of any dispute between signatories regarding the interpretation, application or implementation of this MoU, they will consult each other in order to reach a harmonious solution without prejudice to what is established in the existing bilateral agreements between the Government of [partner country] and the Government of Finland.

7. DURATION

The MoU is effective from [date] to [date]. This MoU is non-legally binding and will enter into effect upon signature by the participants named below. However the MoU is effective only after the signature of the service assignment between the Finnish HEI and the Ministry for Foreign Affairs of Finland.

In witness whereof, we hereby sign four identical copies of this MoU in the city of [town], [country] on the ____ day of the month of __________ of the year.

For [Abbreviation A]:

[full name]

position

For [Abbreviation B]:

[full name]

[position

Annexes

Annex 1: Assignment between the MFA of Finland and [Abbreviation B], [dd/mm/yyyy]]

Annex 2: Project Document with annexes on [Project name], [dd/mm/yyyy

Annex 3: Presentation of Key Expert’s template

Any other approved working schedule or implementation guideline as appropriate.

48

ANNEX 6 Budget template

PROJECT BUDGET

Project name: ________________________ Finnish HEI expert salary and fee costs should be based on a full cost model. *) All costs are described in euros.

Project costs in 201X

Project costs in 201x

Project costs in 201X

Total project costs

Comment / explanation

A1 Salaries and fees of Coordinating Finnish HEI expert

( Person/position) A2 Salaries and fees of Partner HEI(s)

(Person/position, institution, country)

A3 Travel costs (Purpose, location and date of travel )

A4 SERVICES (incl. subcontracted work assignments )

(Name of the person/institution, work description)

A5 OVERHEAD COSTS of Coordinating Finnish HEI

Total A category costs

B1 Direct Administrative costs of Finnish HEI (for example Meeting arrangements)

49

Budget breakdown by result area by year (if the data are available.)

Result areas Project costs in 201X

Project costs In 201X

Project costs in 201X

Total project costs

Comment / explanation

Result 1 Result 2 Result 3 Contingencies Total costs

B2 Administrative costs of Partner HEI(s)

B Total administrative costs

C Fixed assets (item) (item) D. Contingency costs (Unforeseen costs, max of 10%)

Total costs MFA funding applied

Self-financing used

50

ANNEX 7 Annual Progress Report template

Annual Progress Report

The carrying out of the activities is monitored by comparing the activities performed with the milestones established in the work plans. The indicators are derived from the project records, e.g. dates of starting and completing a specific activity.

The delivery of the means, the human resources and material inputs, is monitored by using indicators that are either physical, e.g. appointment of staff, or financial, e.g. a partner country contribution which has been made available. The data are derived from the project accounts and records.

Changes in the project environment which may affect both the results, activities and means of the project as well as its impacts and effectiveness are monitored. Especially, other projects within the sector and the possible changes in the sector policies are under observation.

The foregoing issues form the minimum common format for progress reports: 1. Extent of achievement of results 2. Carrying out of activities 3. Delivery of means 4. Possible changes within the sector and in the project environment in general (including likelihood of assumptions and risks to materialize), and their effects on the project. 5. Proposals for changes in the planned activities, their justification and, if necessary, a request to other stakeholders to approve the change formally

The use of "early signal" indicators means that the beneficiaries´ views are assessed continuously and systematically within the project internal monitoring system. The management team may also organize periodic surveys using local specialists.

Activities and means are reported only in a summarized form. The minimum common format may not always be sufficient. As an example, the priority needs of the beneficiaries

May change due to unforeseen external factors and the project strategy chosen do not any longer correspond to them?

51

ANNEX 8 Annual Financial interim Report template FINANCIAL INTERIM REPORT

Project name: _____________________________

Finnish HEI expert salary and fee costs should be based on a full cost model. *) All costs are described in euros.

Actual Expenditures 201X

Budgeted 201X

Updated budget plan for year 201X

Comment / explanation

A1 Salaries and fees of Coordinating Finnish HEI expert

( Person/position) A2 Salaries and fees of Partner HEI(s)

(Person/position, institution, country)

A3 Travel costs (Purpose, location and date of travel )

A4 SERVICES ( incl. work assignments)

(Name of the person/institution, work description)

A5 OVERHEAD COSTS of Coordinating Finnish HEI

Total A category costs

B1 Direct Administrative costs of Finnish HEI (for example Meeting arrangements )

B2 Administrative costs of Partner HEI(s)

B Total administrative costs

52

Financial report by result area by year (if the project is divided into several result areas and data are available.)

Result areas Actual expenditures in 201X

Budgeted in 201X

Updated budget plan for year 201X

Comment / explanation

Result 1 Result 2 Result 3 Contingencies Total costs

C Fixed assets (item) (item) D. Contingency costs (Unforeseen costs, max of 10%)

Total costs MFA funding used Self-financing used

53

ANNEX 9 Completion report template

ANNEX 11

COMPLETION REPORT

>

<PROJECT NAME> <MFA Intervention code>

Prepared by: <Finnish Agency, name of the person, contact information> <Partner Agency, name of the person, contact information>

Signature of the responsible person(s): <name> <place and date of the signature> Approved by <project board> Place and date: Signature: OPERATIONAL COMPLETION REPORT Project: Implementation period:

54

1. OVERVIEW OF PROJECT IMPLEMENTATION [narrative part max 3 pages] 1. Summary 2. Feasibility and Effectiveness Assessment of how the project’s purpose and overall objectives will be achieved Assessment of how the project’s results will meet the project’s purpose. To the extent possible, assessment of impact of the project towards its long-term development goal. Please use in the assessment the indicators which are defined in the Log Frame. Detailed description is presented in the table report. Brief description of the activities (and delivery of means, if needed) Changes in the project if any, and their justification, including materialisation of assumptions and risks, and their effects on the project 3. Efficiency and Resources Efficiency concerns the relation between the results and means i.e. whether the quantity and quality of results achieved justify the quantity and quality of means used. Efficiency is monitored using cost-based indicators. Efficiency assessment may also cover time use and use of human resource in the project implementation. 4. Relevance Correspondence of the project with the present priority needs of the beneficiaries i.e. relevance. Have there been any significant changes in the project relevance during implementation? 5. Sustainability Factors ensuring sustainability are analyzed. This includes an assessment of changes in the sector policies and in the institutional framework. 6. Lessons learned and next steps

55

2. ACHIEVEMENT OF RESULTS

PROJECT OBJECTIVE PROGRESS TOWARDS THE OBJECTIVE (Please use Indicators)

COMMENTS ON OVERALL PROGRESS (Results, critical issues, changes in project context)

EXPECTED RESULT 1 PROGRESS ACHIEVED

COMMENTS ON OVERALL PROGRESS, (CB methods used, critical issues, comments on project environment)

EXPECTED RESULT 2 PROGRESS ACHIEVED

COMMENTS ON OVERALL PROGRESS, (CB methods used, critical issues, comments on project environment)

EXPECTED RESULT 3 PROGRESS ACHIEVED

COMMENTS ON OVERALL PROGRESS, (CB methods used, critical issues, comments on project environment),

56

3. USE OF EXPERT WORKING DAYS NAME OF EXPERT (Finnish/ Local)

FIELD OF EXPERTISE/ ROLE IN COOPERATION

DELIVERABLES PRODUCED NUMBER OF WORKING DAYS USED

-

4. PURCHASE OF EQUIPMENT OR SERVICES EQUIPMENT / SERVICE COST PROCUREMENT

METHOD (For any item over 15 000 euros)

-

5. PROJECT BOARD MEETINGS Description of schedule and key decisions: 6. OTHER ISSUES

57

ANNEX 10 Financial Completion Report template FINANCIAL COMPLETION REPORT

Project name: ___________________________________

Finnish HEI expert salary and fee costs should be based on a full cost model. *) All costs are described in euros.

Actual Expenditures 201X

Budgeted 201X

Updated budget plan for year 201X

Comment / explanation

A1 Salaries and fees of Coordinating Finnish HEI expert

( Person/position) A2 Salaries and fees of Partner HEI(s)

(Person/position, institution, country)

A3 Travel costs (Purpose, location and date of travel )

A4 SERVICES ( incl. work assignments)

(Name of the person/institution, work description)

A5 OVERHEAD COSTS of Coordinating Finnish HEI

Total A category costs

B1 Direct Administrative costs of Finnish HEI (for example Meeting arrangements )

B2 Administrative costs of Partner HEI(s)

B Total administrative costs

58

Financial report by result area by year (if the project is divided into several result areas and data are available.)

Result areas Actual expenditures in 201X

Budgeted in 201X

Updated budget plan for year 201X

Comment / explanation

Result 1 Result 2 Result 3 Contingencies Total costs

ASSESSMENT PRESENTED BY THE ADMINISTRATIVE UNIT Does the report fulfill the requirements as specified in the agreement and general guidelines? Specific remarks: Date and place: Signature: < name >

C Fixed assets (item) (item) D. Contingency costs (Unforeseen costs, max of 10%)

Total costs MFA funding used Self-financing used

59

ANNEX 11 Auditing guidelines for the auditor in partner country HEI SCOPE We ask you to conduct a Special Purpose Audit concerning the Development Co-operation HEI ICI Programme Project [Name of project] of [Organisation]. According to the HEI ICI programme of the Ministry for Foreign Affairs of Finland's the receiving organisation must observe principles related to good governance and anticorruption activities. State support shall be used only to cover expenses considered to be necessary and reasonable in carrying out the project activities. In accounting, the support receiving organisation shall follow the generally accepted national accounting principles (GAAP). An audit must be carried out in accordance with the International Standards on Auditing as applicable and relevant with respect to the national legislation and standards. The nature of a Development Co-operation Project is as follows: A project is not a legal entity but an accounting subject. It can include transactions in more than one legal entity (e.g. in Finnish HEI and partner HEIs). It does not prepare statutory Financial Statements. The accounting is mainly on a Cash Basis - there may be a few Accruals.

REPORTING

We ask you to further send the Auditor's Report to the coordinating HEI in Finland. The report has to be in English and include the following items:

Project identification and name Implementing organisation Date of the co-operation agreement Reporting period and currency Exchange rate used in the Financial Project Report Total amount of budgeted income and expenditures (including balance from previous year) Total amount of actual income and expenditures (including balance from previous year) Closing balance (including cash, bank and other assets like advance payments and outstanding

checks) Auditor's name, position, address, phone, fax and e-mail Date, auditor's signature and authorization Opinion on the issues below

OPINION

The Auditor's Report offers an opinion on the following areas: Do the financial reports match with the Bookkeeping? Do the financial reports correspond with the co-operation agreement (MoU)? Does the received funding match with the Bookkeeping? Does the Bookkeeping match with the Vouchers? Are there proper Vouchers for the transactions? Is there an adequate Bookkeeping, including Journal and General Ledger? Do the changes in the List of Fixed Assets match with the Vouchers? Does the Bookkeeping match with the Official Bank Account Statements and Cash Book? Does the opening balance of funds correspond with the audit report of last year? Are the approved financial reports free of material misstatement?

60

Are the received, unused funds properly recorded as a liability in the balance sheet and included in the ending balance of the financial reports?

Are the recorded expenses in the financial reports in line with the approved original budget and activity plan?

Is the internal control system of the organisation in place? Are there any material weaknesses that the organisation should improve?

Do the salaries of the project personnel match with existing properly signed employment contracts and does time recording exist?

Have social security expenses including pensions and taxes been recorded and paid to relevant authorities in accordance with the national legislation?

Does the organisation have copies of all valid essential contracts (government, trading, rental, lease, service agreement)?