The UHF, as per the Global Guidelines, will have two allocation types: a standard allocation to be issued on a periodic basis and linked to the priorities of the HRP; an a reserve allocation to be launched in the event of unforeseen requirements or any other extenuating circumstances, based on the HC’s judgement and OCHA’s inputs.
The selection of activities will be underpinned by the HCT-endorsed strategies and frameworks on critical cross-cutting issues such as Protection, Accountability to Affected People (AAP) and Prevention of Sexual Exploitation and Abuse (PSEA).
The HC will use the standard allocation process to support targeted priorities within the HRP. The process will be informed by the AB, supported by the Inter-Cluster Coordination Group (ICCG) in close consultation with humanitarian partners to ensure the best possible strategic use of resources. The process will be transparent, which is essential for the fund to function properly. In consultation with the ICCG, the HFU will prepare an allocation strategy paper with a timeline for the AB’s endorsement.
It will be intended for rapid and flexible allocation of funds in response to unforeseen circumstances, emergencies, or contextually relevant needs. The reserve allocation process will be significantly quicker and lighter than the standard allocation process. It will be up to the HC to activate the reserve allocation to respond to emergency and/or unforeseen needs. In such cases, the HC will maintain a certain amount of available funding for the reserve. The Reserve Allocation proposals will also undergo a competitive prioritization process and the decision to accept project proposals from the reserve rests with the HC. If addressing emergency needs, the AB will be consulted and decision of the HC will be made with 48 hours. Projects funded through reserve allocation should be implemented within a maximum of 12 months. The recommended minimum limit for reserve projects will be determined by the HC.
Monitoring and Reporting
The challenging environment in which the Fund will operate necessitates robust but flexible mechanisms for monitoring, verification and assurance for project activities. All recipient organizations will be expected to provide a realistic monitoring and reporting framework in all proposals. As part of its management functions, the HFU will leverage the monitoring and reporting capacity of established coordination structures in country, including OCHA field offices.
 The HC, under exceptional circumstances, can approve reserve allocations and notify the AB post factum.
 Exceptions to this timeframe can be made by the HC based on prevailing circumstances.