1. Title: Operating Grant for administration of research to Danida Fellowship Centre

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1 Ministry of Foreign Affairs, Technical Advisory Services (TAS) File no.: 104.N.94. Internal Grant Committee Meeting 10 June 2014 Agenda Item no.: 4 1. Title: Operating Grant for administration of research to Danida Fellowship Centre 2. Partners: Danida Fellowship Centre 3. Amount: DKK 9,155, Duration: July 2014 December 2016 (30 months) 5. Previous Grants: DKK 4,950,000 January 2013 June 2014 DKK 9,364,800 January 2010 December Strategies and policy priorities: 7. Danish National Budget account code: Strategic Framework for Danish Support to Development Research Desk officer: Lasse Møller 9. Head of Department: Tove Degnbol 10. Summary: The grant to Danida Fellowship Centre (DFC) covers the daily administration of research grants and research projects approved by the Ministry of Foreign Affairs. While Technical Advisory Services (TAS) has the overall responsibility for the support to Danish and international research institutions, takes strategic decisions and undertakes technical assessments, DFC is responsible for administrative and financial management of the grants. This includes disbursement of funds, monitoring of activities through annual reports, completion reports and audit reports, organisation of the call for research proposals funded through the Consultative Research Committee for Development Research (FFU), training of recipients in guidelines for financial management, and maintaining a web-based research portal with information on all research grants. 1

2 Objective The overall objective of Danish support to development research is to strengthen research capacity in developing countries and to create new knowledge capable of alleviating development problems 1. The objective of the present grant is to ensure an effective and efficient management of the support to development research. Resource efficiency Until July 2008, the administrative and financial management of the wide range of research grants financed by Danida and amounting to approx. DKK 250 million per year was undertaken by Technical Advisory Services (TAS). Based on an assessment of the efficiency of the administration, it was decided that this model did not represent the best use of staff resources in TAS, and the administration was outsourced to Danida Fellowship Centre (DFC) where specialised staff has the relevant financial management and administration skills. Previous results An assessment of the administration by DFC of research grants was part of an overall investigation of the research area by the Auditor General undertaken in the second half of 2012 and reported in November The assessment was positive, and the Auditor General found that the administration was efficient and transparent, relevant guidelines and procedures were applied, and relevant information was provided to the general public about possibilities for obtaining research grants. The Auditor General appreciated that TAS had followed up on the transfer of responsibility to DFC by undertaking a study in 2009 on procedures applied by DFC and had agreed an action plan with DFC to handle outstanding issues. At the time of the assessment by the Auditor General, all outstanding issues had been solved. An evaluation of Danida-support research on agriculture and natural resource management, published in August , found that DFC s role in the general administration and support to logistics and finances of grants funded through the Consultative Research Committee on Development Research (FFU) was positively assessed by stakeholders. This has been confirmed by representatives of Danish research institutions in the Council for Development Policy, when research issues have been on the agenda, and TAS have received the same positive assessment from south-based research partners. Description of the grant In the Strategic Framework for Danish Support for Development Research , the 1 International Development Cooperation Act (Lov om Internationalt Udviklingssamarbejde), approved by the Danish Parliament in May 2012, Art Rigsrevisionen: Rapport om Tilskudsrevision i Udenrigsministeriet, November Ministry of Foreign Affairs, Evaluation Department: Evaluation of Danida support on Agriculture and Natural Research Management , August

3 role of DFC is described as follows: DFC transfers funds to partners, communicates with partners about all administrative and financial aspects of research grants, follows up progress and completion reporting and approves final audited accounts 4. TAS has the overall responsibility for the support to Danish and international research institutions, takes strategic decisions and undertakes technical assessments. DFC supports TAS by taking care of the administrative and financial management of the grants. The specific tasks of DFC related to administration of research grants are comprehensive. DFC manages projects funded through the Consultative Research Committee for Development Research (FFU), including both North-driven projects and South-driven projects, International Agricultural Research (CGIAR), Other International Development Research (in the area of health and social science research), and Projects in Denmark 5. Of these, projects funded through FFU account for most of the tasks. The tasks include disbursement of funds, monitoring of activities through annual reports, completion reports and audit reports, organisation of the call for research proposals funded through (FFU), training of recipients in guidelines for financial management, and maintaining a web-based research portal with information on all research grants. As part of the monitoring tasks, DFC staff visits south-based research institutions and ensures that administrative guidelines are understood, and they participate in annual meetings of the South-drive research programmes in Ghana, Tanzania, Nepal and Vietnam. Most of the tasks can be planned and follows the list given in annex 2, but DFC must be flexible and in cases of suspicion of mismanagement of funds, DFC organises additional audits and follows up with the institutions in case. DFC is also responsible for a series of administrative tasks related to the Building Stronger Universities (BSU) programme. This administration is not included in the present appropriation but was part of the appropriation for the BSU programme in December 2013 (i.e. tasks number 13 and 14 in the list in annex 2 are not part of the present appropriation). The following targets have been set for the DFC administration of research grants during 2014: Appropriate organisation of the administration of research grants, including administrative quality assistance of research projects and activities. Administrative and financial management procedures must be thoroughly prepared and formally approved, before they are applied by research projects. 4 Ministry of Foreign Affairs: Strategic Framework for Danish Support for Development Research , April DFC is responsible for the daily administration of research grants under the following budget lines: Projects in Denmark Research Company International Agricultural Research Other International Research 3

4 An informative website with relevant information about the administration of research grants. Efficient administrative solutions and effective handling of documents and files. This includes maintenance of a data base, which provides the basis for the daily management of grants. This also implies that the administration is in accordance with usual Danish government rules and requirements concerning documentation of the use of funds. A transparent and appropriate procedure applied in the call for research proposals and the processing of the applications received. Management The agreement between DFC and the Ministry of Foreign Affairs about the administrative and financial management of research grants is part of the overall Cooperation Agreement signed by the Department for Humanitarian Action, Civil Society and Personnel Assistance (HCP) on behalf of the ministry. The agreement describes the overall monitoring by the Ministry of Foreign Affairs of the tasks carried out by DFC. The dialogue involves the Chairman of the DFC Board, the director of DFC and the Ministry of Foreign Affairs represented by HCP and TAS. According to the agreement, at least two meetings should be held every year. In practice, TAS staff is in contact with DFC several times every week. DFC has allocated a total of /37 man years for administration of research grants. Of these, 1 man year is dedicated to (and funded by) the BSU programme. The present appropriation, thus, funds /37 man years. The staff has a combination of relevant financial management and administration skills and extensive experience with managing research cooperation. Special considerations and priorities In line with the priorities in the Strategic Framework for Danish Support for Development Research , it is planned in the coming years to strengthen the results-orientation of research grants and to improve the communication and dissemination of research results. It is also the ambition to improve the application of the Human-Rights Based Approach to research cooperation, and as the immediate interlocutor of many research partners, DFC will play a key role in realising this endeavour. This includes i.a. encouraging female researchers to apply for research funds and actively participate in research activities and publication of results. Budget The breakdown of the budget from 1 July 2014 to 31 December 2016 is given in the table below. 4

5 Budget for DFC administration of research grants (except BSU) (DKK) Research administration (6 mdr.) General administrative costs of DFC (reception, management, etc.) 730,000 1,405,000 1,415,000 3,550,000 IT services for electronic research applications and maintenance of research portal 35,000 75,000 75, ,000 Salaries and travels 1,210,000 2,090,000 2,120,000 5,420,000 Total 1,975,000 3,570,000 3,610,000 9,155,000 Significant risks and mitigation measures Risks Likelihood Impact Mitigation measures DFC staff mainly has administrative and financial management skills and finds it difficult to apply a HRBA approach, improve results orientation, etc. Medium High On-going dialogue between TAS and DFC about key targets and the approach to the organisation of the work. Serious mismanagement of funds by one or several research partners is detected, and DFC staff will have to spend significant resources on following up on the case(s), thereby finding it difficult to undertake the other tasks Reconciliation of funding data between TAS and DFC continues to be a substantial burden on TAS staff, hence the advantage of outsourcing the administration and financial management diminishes Low Low Medium Medium Comprehensive efforts are made to avoid mismanagement cases. These includes training of recipients of research grants in appropriate management, annual audits, and on-going monitoring by DFC of all grants. With the assistance of the Quality Assurance Department (KVA), TAS and DFC have come far in the development of procedures, which eliminate the need for reconciliation of funding data. 5

6 Annex 1: Danida Fellowship Centre DFC is a self-governing institution under the Ministry of Foreign Affairs. It was founded in 1990 to manage and implement the Danida-supported Fellowship Programme. Since 2008, DFC has also been tasked with the administration of Danida s research development grants. Of its two main tasks, the fellowship programme is by far the largest, accounting for approx. DKK 67 million out of the total annual DFC budget of approx. DKK 76 million. Administration of research grants accounts for about DKK 4 million per year, while the rest is administrative costs (reception, management, etc.). The fellowship programme is funded partly by a central grant and partly by budgets for training activities included in bilateral programmes and projects in Danish priority countries. In 2014, the central grant amounts to DKK 40 million, while programme and project-funded activities account for DKK 16 million. Administrative costs are funded through a special grant from Ministry of Foreign Affairs, managed by the Department for Humanitarian Action, Civil Society and Personnel Assistance (HCP). The administration of research grants is funded by the present appropriation of DKK for July December 2016 (30 months), supplemented by a special grant of DKK 3 million over 34 months (January 2014 to November 2016) for the management of the Building Stronger Universities (BSU) programme. The latter was included in the appropriation for the BSU programme approved by the Finance Committee in December Also in terms of the number of staff, the research administration is the smallest area of DFC. A total of /37 man years are used for administration of research grants, and of these 1 man year is dedicated to (and funded by) the BSU programme. The present appropriation, thus, funds /37 man years. The Department for Humanitarian Action, Civil Society and Personnel Assistance (HCP) has signed a cooperation agreement with DFC. The present agreement covers the period until December In January 2015, a new agreement, which will integrate the new Policy for Danida Capacity Development Support Programme, will take effect. The agreement on administration of research grants is part of the overall cooperation agreement, and the specific tasks of DFC related to the administration of research are listed in an annex to the agreement (see annex 2). A simple results matrix is annexed to the agreement. One target regards efficient and high-quality administration of research grants and has the following indicator: no complaints are received from researchers or from the Ministry of Foreign Affairs. A DFC Board of five external persons is appointed by the Ministry of Foreign Affairs. Current members of the Board are: Chairman Mr. Michael Wendelboe Hansen, Senior Lecturer, PhD, Copenhagen Business School 6

7 Ms. Mette Vestergaard, Managing Director, Mannaz Mr. Nils Boesen, Consultant Ms. Susanne Lildal Amsinck, Senior Researcher, PhD, Aarhus University Ms. Ulla Godtfredsen, Head of Department, Metropolitan University College 7

8 Annex 2: Cooperation agreement between Ministry of Foreign Affairs and DFC concerning research administration (signed in December 2013) DFC varetager administration af forskningsbevillinger, inklusive projekter i Danmark, forskningsprojekter under den konkurrenceudsatte forskningspulje (norddrevne og syddrevne projekter), rejsestipendier, projekter og bidrag under international landbrugsforskning og anden international forskning. Samtidig varetages forskningsprojekter under Building Stronger Universities, BSU. Dette omfatter afslutning af fase I samt opstart og gennemførelse af fase II. Dertil kommer administrationen af BSUs Fellowship programme. BSU fase II omfatter bevilling på 100 million kr. i perioden 1. januar 2014 til 31. oktober 2016, jf. Projektdokument dateret november DFC s hoveopgave er at facilitere, administrere og monitorere BSU fase II, mens det overordnede ansvar påhviler Udviklingsfaglig Tjeneste (UFT) under Udenrigsministeriet (UM). To kontraherede proces- og monitoreringskonsulenter vil bistå DFC for så vidt angår match-making og monitorering. Al kommunikation om forskningsadministrationen foregår mellem DFC og UFT, og kun efter aftale direkte mellem DFC og Det Rådgivende Forskningsfaglige Udvalg (FFU). Hovedopgaverne omfatter: 1. Udarbejde og vedligeholde sagsbehandlervejledning(er) og administrative procedurer for DFCs administration af forskningsbevillingerne. 2. Udarbejde og vedligeholde vejledning til ansøgere/bevillingshavere, og i forbindelse med ansøgningsrunden deltage i oplysningsmøder i Danmark og i syd. 3. Holde DFCs hjemmeside opdateret med relevant information og oplysninger om opslag, retningslinjer, ansøgningsskema og vejledning m.m. 4. Holde forskningsportal opdateret med relevant information om nye forskningstilskud, bevilgede samt afsluttede projekter. 5. Udvikle og vedligeholde en systemløsning (projektdatabase) for registrering af forskningsprojekter. Projektdatabasen skal indeholde basisoplysninger, som kan danne grundlag for den daglige sagsbehandling og for en årlig afrapportering. 6. Udarbejde udkast til referat for FFU møder, som UFT færdiggør. 7. Håndtere ansøgningsprocesserne, jf. skema 1. Mødereferatet fra FFU møderne danner grundlag for den videre ekspedition af de enkelte projektansøgninger. 8. Administration af forskningsbevillingerne, herunder udsendelse af bevillingsskrivelser, monitorering af rettidig indsendelse af regnskaber, årsrapporter, og PCRs/afsluttende rapporter fra bevillingshaverne, samt i øvrigt påse at forskningsinstitutionerne opfylder deres forpligtigelser i forhold til administrationen af de enkelte forskningsprojekter. Udbetaling af tilskud i overensstemmelse med General Conditions. Se skema Administrativ kvalitetssikring af projekternes års- og afsluttende rapportering, hvor det ud fra en screening af projekternes rapporterede målopfyldelse vurderes, om projekterne imødekommer/ har imødekommet bevillingsgrundlaget. Rapportering til UFT om væsentlige afvigelser fra det aftalte grundlag for bevillingerne, herunder udskiftning af forskere, afvigelser i output, tidsplan mv., som beskrevet i skema Deltage i årsmøderne i syd og afholde administrationsmøder individuelt med hvert af de syddrevne projekter. 11. Afholde/organisere introduktion/workshops/kurser i forskellige emner inden for god forvaltning, finansiel management, gode partnerskaber, formidling mm., som led i kapacitetsudvikling af nye og igangværende syddrevne projekter. 12. Administration af færdiggørelse af PhD studier under BSU fase I (del af BSU fase II). 8

9 13. Administration af fem (5) reorganiserede projekter under Capacity Building within Research Communication, Dissemination and Networking. 14. Administration af kapacitetsopbygningsaftaler med 7 universiteter i syd under BSU fase II: a. Sign partner agreements with the universities in the South for the Ministry of Foreign Affairs of Denmark upon approval of TAS. b. Facilitation and administration of the match-making process, including quality assurance of the selection process. A Process Consultant will be contracted by UFT to assist DFC. c. Approve final development engagements from partners. d. Support to the financial management of the grant as needed by the South partners. e. Monitor progress of BSU II and report to UFT. A Monitoring Consultant will be contracted by UFT to assist DFC. f. Receive and approve half-yearly progress reports from partners. g. Monitor the South partners financial progress and procedures on a half-yearly basis. DFC will contract a local auditor to monitor the financial progress and procedures. h. Receive and approve annual audit reports from partners. i. Undertake disbursements to partners in the South based on approved development engagement. j. Undertake disbursements to partners in the North following authorisation of this by partners in the South. k. Be focal point on all BSU II related communication with the partners in the South and North on programme management related issues. l. Organise knowledge sharing for all partners (mid-term seminar). m. Facilitate technical assistance on monitoring/results based management upon request. 15. Administration af den halvårlige ansøgningsrunde for rejsestipendier, samt udvælgelse af rejsestipendiemodtagere. 16. Underrettelse af UM i tilfælde af mistanke om korruption eller tab af statsmidler ved tyveri, bedrageri eller anden misbrug af bistandsmidler. Underretningen ledsages af et udkast til en underretningsskrivelse til Rigsrevisionen. Efter aftale med UFT igangsættelse af revision i tilfælde af mistanke om uregelmæssigheder. 17. Tilvejebringelse af relevant finansiel information til brug for UMs bidrag til tilsagns- og udbetalingsbudgetter, tillægsbevillingsloven og udarbejdelse af finanslovsforslag mv. 18. Bidrag til redegørelse om forskningsbistanden til Udviklingspolitisk Råd via UFT. 19. Generel økonomistyring og afstemning af data i forhold til UM. 9

10 Annex 3: Actual and expected commitments for development research in DKK million (rounded figures) Grants divided in activities 2013 (actual) 1. Support to Projects in Denmark 110 of which - Building Stronger Universities (BSU) ReCom Projects funded through the Consultative 98 Research Committee on Development Research (FFU) Of which - North-driven projects 78 - South- driven projects 20 - DFC administration 2014 (expected) (expected) (expected) Minor Studies International Agricultural Research (CGIAR) 5. Other International Development Research Total Source: Finance Act 2013 and 2014 The present appropriation covers administration of all research grants mentioned in the table except Building Stronger Universities (BSU). Administration of the BSU programme was included in the appropriation for the BSU programme approved by the Finance Committee in December