Inter-Sector Coordination Overall: Inter-cluster collaboration on cross-cutting, thematic, technical or operational issues and areas can be undertaken through different inter-sectoral working groups/sub-groups established by (and reporting to) the ICCG (or the HCT). Among others, this can include areas such as cash, early recovery, needs assessments, accountability to affected people, communication and reporting and operationalising the humanitarian-development-peace nexus.  

Which working groups/sub-groups the FSC Coordinator will actively participate in depend on the specific country context and should be determined with the CLAs. However, the Coordinator should always participate in working groups on cash and on early recovery.  

Cash and Voucher Assistance

In recent years, where appropriate, the humanitarian system has increasingly embraced cash and voucher assistance (CVA) as a modality of assistance along with in-kind and service delivery. Humanitarian assistance in the form of CVA has tripled between 2015 and 2021 and is expected to have accounted for more than 20% of total international humanitarian assistance in 2021 (The Global Humanitarian Assistance Report 2022, Development Initiatives, 2022).

Over the past years, specifically multi-purpose cash (MPC) transfers have been adopted more widely as an intervention modality to address the diverse needs of affected populations during and in the aftermath of crises. As a result, coordination around MPC initiatives have improved and strengthened. 

Cash Coordination at Country Level – Cash Working Groups  

Typically, when CVA constitutes a significant proportion of the response, the HC/RC and HCT will consider the need to establish a dedicated Cash Working Group (CWG) under the ICCG. This recognises the multi-sectoral nature of the modality and allows for meaningful inter-cluster engagement on cross sectoral issues related to CVA. Coordination typically takes place through national-level CWGs whose main aim is to coordinate and provide technical support to facilitate cash programming (although sub-national CWGs are not uncommon). 

Cash coordination should be done in a way that improves complementarities, synergies and accountabilities among response actors. In March 2022, the IASC endorsed a new cash coordination model, which aims to ensure accountable, predictable, effective and efficient coordination of cash assistance and to make clear who will do what and to what end. At global level, the Cash Advisory Group (CAG) is responsible for providing strategic and technical guidance and capacity to countries. 

Formalising the new cash coordination model within the existing system will take place over a period of two years. During this time all existing CWGs at country level will transition in line with this new coordination approach.   

ICCG Role and CWG Chairs: The ICCG (or ISCG) is responsible for overall cash coordination and the day-to-day tasks will be delegated to a linked and formalized CWG, which is accountable to the ICCG (ISCG) (or the HC/HCT if there is no ICCG). The CWG will be co-chaired by a programmatic (elected based on a vote – priority should be with local actors, although clear criteria will guide the process) and a non-programmatic chair (to mitigate conflicts of interest). The non-programmatic co-chair / co-lead is OCHA for IASC coordination (clusters) whereas UNHCR is the co-lead for refugee coordination arrangements (sectors – see more on coordination in the context of refugees in 4.2.2).      

Given the central role of the ICCG, the new coordination model leverages the established coordination architecture and helps to strengthen the wider humanitarian coordination system. The CWG should have strong links to the clusters (and sectors), who should be represented in its membership and will continue to remain responsible for cash relating to their sectoral responses. 

CWG Functions: The CWG’s main focus is on a range of technical measures that support improved coherence in the implementation of the cash response. It will support and strengthen response analysis and forge links to associated planning processes such as the HNO and HRP ), although these will remain a key function of the ICCG under OCHA’s leadership. 

Specifically, the CWG should: 

• Provide effective coordination of cash across the response. This include assessing the feasibility of and need for cash (in particular MPC) as part of overall response analysis as well as providing technical support to coordinated (intersectoral) needs assessments and technical support/ leadership to multisectoral response analysis to consider the appropriateness, feasibility and relevance of MPC.  
• Coordinate with the clusters/ sectors to ensure the overall cash response is coherent, avoids duplication and work to increase effectiveness.
• Provide effective information management on the delivery of cash assistance, across the response, and in close collaboration with clusters and their IMOs for sector specific use of cash (including accurate and up to date 4Ws). See also note on common guidance & reporting in grey/orange box below.
• Promote use of common mechanisms, standards, and tools across partners for harmonized, quality and accountable programming. This includes coordinating/leading discussions on setting transfer values (e.g. the Minimum Expenditure Basket (MEB) – see 5.6.2).
• Provide common services to cash partners - including supporting joint framework of design for cash, market analysis, risk assessments, financial service provider mapping, coordinated monitoring, coordinated feedback mechanisms and supporting cash related advocacy.  

It is important for the Coordinator to know that the CWG is not responsible for the following functions:

• Deciding upon humanitarian needs – these will continue to be based on sectorial or multi-sectoral assessments conducted across sectors/ clusters under the lead of the ICCG.  
• Deciding how operations are implemented in response to assessed needs – response analysis across sectors continue to provide the basis upon which response modalities are selected (drawing on multi-sectoral assessments including market analyses).
• Deciding on funding allocations. 
• Representing to government on issues that agencies are mandated to speak on. 

See more details on the governance, leadership and functions of the CWG here.