In line with Grand Bargain commitments, the OCHA Humanitarian Financing Unit (HFU) is strengthening the accountability and inclusivity of the IHF through capacity-building and increased funding to national NGOs. This includes trainings on project proposal development, budget setting and how to undergo the fund’s capacity-assessment process. In 2017, the IHF allocated the majority of its funds (60 per cent) to NGOs, including 9 per cent directly to national NGOs. It is committed to increasing their participation in the fund in 2018.
Risk management is one of the main pillars of the IHF Accountability Framework. NGOs interested in applying for funding through the IHF are invited to undergo the fund’s capacity-assessment process, which helps to ensure that the HFU has the necessary information about the operational capacities of potential partners.
The HFU conducts two capacity-assessment exercises per year, usually in June and December. The process comprises two inter-linked steps (capacity assessment and due diligence), each with its own review-and-feedback system to ensure transparency.
Upon completion of the capacity-assessment process, each partner receives an individual score that determines the partner’s risk category in three levels (high, medium and low). The risk rating determines the appropriate operational modalities and assurance mechanisms that will be applied to approve IHF projects. Partner risk ratings are dynamic and will be adjusted over time as the performances of organizations are reviewed following their implementation of IHF-funded projects.