Guidelines for projects to be funded by

TeleFood Special Fund (TSF)

A. GENERAL GUIDELINES

Conference Resolution 3/97 endorsed the establishment, under Financial Regulation 6.7, of a TeleFood Special Fund (TSF). The purpose of the TSF is to finance concrete grassroots-level projects to assist poor families in developing countries and countries in transition. Its aim is to improve their means of production, thus enabling them to produce more food and to generate cash income, thereby allowing them better access to food. These projects may be implemented on a free-standing basis or in conjunction with other existing activities, in particular those under the Special Programme for Food Security (SPFS).

There is a yearly ceiling, presently fixed at US$30 000, for the financing of TSF projects in each country applying to the fund. The TSF can finance projects in each of the three categories mentioned in Section B.

Funds exceeding US$30 000 collected locally during the annual TeleFood campaign could be used to finance local TeleFood projects if so requested by the local authorities. In that case, the country would benefit from an allocation of US$15 000 from the central TSF in addition to the amount collected locally.

The budget of a single TSF project should in no case exceed US$10 000 and financial assistance extended to the project should not exceed 12 months. An exception to the rule can be allowed only if the type of activities and local conditions described in the project proposal so justify.

Each project should provide direct assistance to the farmers, fishermen, herders or rural poor of a particular village or community, in the launching of self-contained food production and income-generating activities.

While TSF projects should be self-contained, they should, whenever feasible, be linked to ongoing development projects funded by FAO's Regular Programme (SPFS or Technical Cooperation Programme [TCP]) or by other sources (Unilateral Trust Funds [TF], Government Cooperative Programme [GCP], United Nations Development Programme [UNDP], other United Nations bilateral assistance projects, Non-governmental Organizations [NGOs], etc.).

As TSF projects are essentially pilot projects, the inputs provided by them should be distributed free of charge. Consequently, the constitution of a revolving fund is not necessary at this stage. However, to be eligible to receive TSF assistance, the beneficiaries should organize themselves into a group and agree to contribute a small amount of money to a community fund on a regular basis (e.g., monthly), in addition to their own labour and inputs. After the first year of the project, and based on the sales of products derived from the project, the community must decide on the share of net revenue (after the deduction of costs and amortization) to be allocated, respectively, to the community fund for saving and investment, and to the members for increasing their income. All these allocations should be mentioned in the final report in order to enable evaluation of the project's impact. The community fund should be used initially to purchase additional inputs or build small infrastructures required by the project and, in a second stage, to expand the project to undertake additional productive activities within the community. The sustainability of activities launched under TeleFood projects will guide future TSF allocations. TSF money should be used exclusively for the provision of inputs, supplies, material or small equipment, including their transport up to the beneficiaries. Under no circumstances should TSF funds be used to cover mission costs of supervisors, seminars or other training activities, or for the production of booklets and manuals.

Close technical supervision is not required for TSF projects. These projects should not aim to introduce new complex technologies that are unfamiliar to the community (e.g., fish culture in rice fields, where there is no tradition for such activity). All activities should be sustainable and environment friendly.

B. TYPES OF PROJECTS AND INPUTS WHICH COULD BE COVERED BY THE TSF

B.1 Category I: Crop production

I.a Cereals
I.b Roots and tubers
I.c Vegetables
I.d Fruits
I.e Others: agroforestry, apiculture, small-scale irrigation, agricultural support, etc.

9. For all five sub-categories, the standard inputs should be of the same nature:

• Seed or planting material of high-yielding varieties in the quantities required for one or maximum two agricultural campaigns. Seed and planting material protected from pests and diseases and their quality certified by the national certifying body.
• Fertilizers required for one or maximum two campaigns.
• Hand tools. Other more heavy equipment, such as animal draught equipment, pumps, threshers, harvesters, etc., should be provided by other sources of funds as mentioned in Section A.5.
• Material and supplies for the construction, through community labour, of simple facilities for storage or post-harvest operations (such as drying).
• Limited quantities of pesticides with the necessary material for safe storage and use and instructions for application can be provided under exceptional circumstances. Wherever possible, integrated pest management methods should be used.

B.2 Category II: Small animal production

II.a Poultry (chicken, geese, ducks, guinea fowl, etc.)

II.b Small ruminants

II.c Pigs

II.d Others

10. For all four sub-categories, the standard inputs should be of the same nature:

• Start-up stock (one-day chicks, sheep, piglets, etc.).
• Animal health supplies: vaccines, drugs, with instructions for use.
• Feed resources in quantities sufficient to cover the first rearing period and/or material required for the treatment/preparation of locally available feed resources.
• Hand tools, material and supplies for the construction, through community labour, of simple appropriate shelters for the animals.

B.3 Category III: Fish production

III.a Small-scale fish culture

11. Standard TSF inputs should consist essentially of:

• Fry for water stocking.
• Fishing gear, if required.
• Products for fish feeding and/or organic fertilizer in the quantities required until the end of the first production period and/or material required for the treatment/ preparation of locally available feed resources.
• Hand tools, material and supplies for the construction of simple post-harvest processing facilities: salting, drying or smoking.

12. Fish culture should be promoted in existing ponds, water reservoirs or, eventually, irrigated rice fields. The projects should be granted only to beneficiaries who are familiar with the techniques.

III.b Improvement of artisanal fisheries

13. Standard TSF inputs should include:

• Fishing gear (the provision of boats should not be envisaged at this stage).
• Hand tools, material and supplies for fish conservation (with ice, if locally available), and for the construction of simple post-harvest processing facilities as for fish culture.

C. TELEFOOD PROJECT PROCEDURES

C.1 Submission of a proposal

14.The project request can originate from a number of sources (local NGOs, villagers’ associations, governments, etc.). Project documents should include a brief description of the objectives, the proposed food production/income-generating activities, the work plan, the number of participants, a detailed list of inputs with cost estimates and the reporting arrangements. The template (see Annex 1) should be used as a model, taking the local conditions into account.

15. The FAO Representative/UNDP Resident Representative (FAOR/UNDP RR) with the assistance of national SPFS staff, if available, or other FAO field staff, and in full collaboration with the national government counterpart, will finalize the project document and ensure that it corresponds to the above mentioned criteria and fits into the national government policy. A national civil servant, preferably a technician from the Ministry of Agriculture, or another official from the government or a Non-governmental Organization, should be designated to be responsible for the entire cycle of each project. He/she will ensure the follow-up of the project and submit the interim and final reports to the FAO Representative/UNDP Resident Representative.

C.2 Review and approval

16. When an agreement is reached on the detailed inputs, plan of operation and community fund, the FAOR/UNDP RR will send the project document(s) to the Director of the Field Operations Division (TCO) for review by the divisions concerned and subsequent submission to the Programme and Project Review Committee for endorsement. The review process analyses the potential impact of the project on increased food production and availability of food; the viability of the project and the experience of local groups that will carry it out; the role of women/youth as participants and beneficiaries of the project; the sustainability of the project, etc.

C.3 Project implementation

C.3.1 Financial issues

17. Funds raised locally will be deposited into an FAO-TeleFood bank account opened by AFF in the countries at the request of the TeleFood Coordination Unit or the FAO Representative. These funds will be transferred each month to a designated FAO bank account, usually the FAO Imprest Account, and reported to FAO Headquarters as requested by AFF.

18. Once a project is approved, TCO will request AFF to open a new baby project account. Each baby project account refers to one specific project. The FAOR/UNDP RR will be the budget holder for the baby project and will be responsible for the procurement of inputs and their transport up to the beneficiaries. He/she will prepare final financial statements for the TSF contribution, including all supporting documentation.

19. Expenditures will be recorded through the Field Accounts System (FAS), or reported to FAO Headquarters through the Inter-office Voucher (IOV) system against that baby project account. AFF will be responsible for submitting quarterly financial reports showing expenditures against funds allocated at project/country level and the expenditures against the TeleFood account in any given year.

20. The projects will be audited every six months and reports will be sent to AFF with a copy to TCO, according to the practice followed by the local audit firms selected by FAO for its field operations. The TeleFood Special Fund will be subject to audit from Headquarters on the basis of records held at Headquarters and in the field.

C.3.2 Reporting

21. The FAOR/UNDP RR and the designated national officer will supervise project operations, if necessary with the assistance of FAO field staff or national SPFS staff. The FAOR/UNDP RR in the country will submit to TCO an interim report prepared by the designated national officer/NGO/beneficiary group, three months after the starting date of the project. This report will describe the status of the preparatory work related to the organization of the beneficiaries, the receipt of funds from Headquarters, procurement, delivery of inputs and progress to date.

22. At the end of twelfth month of projects activities, the FAOR/UNDP RR in the country will submit a final report prepared by the designated national officer/NGO/beneficiary group. This report will provide all relevant information on the socio-economic impact of the project and the perception of the project results by the target beneficiaries, with a view to expand project activities in a second phase with the community development fund. The final report should also provide a detailed breakdown of the expenditures incurred under the project budget. The final report will be submitted to TCO and AFF by the FAOR/UNDP RR. TCO will request comments from the technical divisions concerned and use the document for the global evaluation of the annual campaign.

C.4 Projects ex-post review

23. Six months after financial closure TCO will, by means of a questionnaire, carry out a special review to verify the sustainability of each completed project (activities expanded, community fund functional, group cohesiveness improved, etc.).

C.5 Closure procedure

24. The limitation on the duration of projects (see Section A.4 above) should be respected not only in terms of project design, but also in terms of financial control. Upon receipt of the final report, TCO will request AFF to:

• register the final situation of the project budget (any balance should be transferred to the central TSF fund); and
• financially close the project 3 months after the planned project completion date, as mentioned in the approved project document. All approved micro-projects under the annual TeleFood campaign should be financially closed on the date indicated in the letter sent by the ADG, TC Department at the beginning of each year to all FAORs requesting them to submit proposals. After that date, it will no longer be possible to post expenditures against the project budget.

25. This closure of the account will be applied irrespective of whether a final report (see paragraph above) has been submitted or not, but the obligation to submit a final report remains.

ANNEX 1: TELEFOOD PROJECT FORMULATION TEMPLATE

The following template can be used for formulating projects in the three areas covered by TeleFood: crop production, small animal production and fisheries.

COVER PAGE

TELEFOOD SPECIAL FUNDS

COUNTRY:

Project title:

Starting date:

Estimated completion date:

Budget: US$

Signature: (name and date)

PROJECT DOCUMENT

Target group

The primary beneficiaries will be rural small farmers' groups at village/district/urban area level, fishermen and fish collectors/traders/processors in artisanal fisheries and small-scale fish culture, and/or schools. The number of group members should be specified, highlighting the importance of women/youth involved, particularly if the projects are mainly or specifically designed for women/youth.

Secondary beneficiaries will be the families or communities of the persons involved in the projects. TeleFood projects should not be restricted to a single farmer, but should include several farmers.

Background and justification

This section should describe the geographical area concerned, using economic information to state the precise problems to be solved. It should also describe the development efforts made by the government and local populations, and show how the assistance could play a catalytic role. A paragraph should indicate which local institution/Non-governmental Organization will be responsible for technical implementation and supervision of the project activities.

Prerequisites

A number of prerequisites need to be satisfied before project assistance can be considered. This section should list the functions of the groups of farmers/women being considered, the arrangements made in order to create a community fund, the institution/NGO capable of technically managing the project; access to a reliable supply of feed/drugs, etc.

Objective

This section should state, briefly and clearly, the objective that the project is expected to achieve, as well as the resulting and verifiable situation. This could include: "to assist group/cooperative members to increase the production of vegetable and fruit crops"; "to provide inputs to increase the production of small animals"; "to improve incomes through the reduction of post-harvest losses in artisanal fisheries", etc.

The project should not aim to introduce new complex technologies that are not familiar to, or sustainable by the communities.

Duration

The financial assistance extended to the project cannot exceed 12 months. The expectation is that the activities of the group will then continue on a sustainable basis.

Outputs

Outputs/results should be the tangible products of activities to be undertaken by the project; they should be consistent with the project’s objectives, verifiable in quantity and quality and timely (e.g., a marketing system put in place, linking producers to better- paying markets; a low-investment post-harvest system put in place to reduce losses; or a technically managed fruit nursery established and plant propagation process initiated).

Activities

A list should be made of selected activities to be undertaken to obtain the above outputs (i.e., identification of species and varieties suitable for cultivation; selection of nursery site; procurement of small equipment, tools and materials). The listed activities should be shown in a work plan.

Inputs/Budget (in US$)

All equipment and supplies should be obtained locally. The budget may cover such costs as conditioning for fish and transportation to the project site. A detailed list of all inputs should be presented, with a total up to a maximum of US$ 10 000 (TSF contribution). "Miscellaneous" expenses, salaries, office furniture, administrative costs and training costs are not acceptable.

Group participation should be included in the budget, such as contributed labour inputs and the creation of a community fund to provide durable support to the project. A cost benefit analysis should be indicated for particular projects.

Linkages with other (FAO) projects

Projects should, whenever feasible, be linked to ongoing development projects, be they funded by the FAO Regular Programme (SPFS or TCP) or by other sources (UTF, GCP, UNDP, other UN bilateral assistance projects, NGOs, etc.).

Monitoring and reporting arrangements

The FAO Representative/UNDP RR in the country will submit an interim report and a final report prepared by the designated national officer. The interim report will confirm the starting date and the objectives of the project (see Annex 2). The final report will describe the benefits accrued to the community of beneficiaries and the lessons learned from the experiences, with particular reference to future activities to be undertaken within the resources of the community development fund. The final report should also provide a detailed breakdown of the expenditures incurred under the TSF contribution.

Risks

A number of risks could jeopardize the projects' success. If this is the case, these should be indicated (e.g., full financial responsibility of producers, breakdown of supply chain, disease causing either mortality or poor performance, etc.).

ANNEX 2: TELEFOOD PROJECT INTERIM REPORT FORM

ANNEX 3: TELEFOOD PROJECT FINAL REPORT FORM