- 11 Mar 2024
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4.3.4 Examples of Key Areas for Inter-Sector Coordination: Cash
- Updated on 11 Mar 2024
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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.
What is the role of the FSC Coordinator? The FSC Coordinator will be involved in several aspects of CVA and MPC coordination. However, the role and participation of the Coordinator may vary according to the scale of CVA/MPC programmes during the humanitarian response.
Where there is an active CWG, the Coordinator should actively participate (in line with the 2022 IASC cash coordination model) – similarly, the CWG coordinator should participate in the FSC (in general but especially when the cluster has a cash response). The FSC IMO should provide necessary information and data on cluster CVA activities.
Generally, the FSC should be actively involved in cash coordination including:
- Assessments (e.g. market assessments, price monitoring, impact and endline assessments etc.).
- Development and revision of Minimum expenditure basket (MEB) and/or survival minimum expenditure basket (SMEB) (see 5.6.2).
- Programme transfer value, linked to MEB.
- Monitoring and reporting on interventions (food security related activities will be reported under the FSC however, the FSC can ensure the sector 5W template includes all information required by CWG for cash monitoring).
- Coordination and harmonization.
- Share good practices, especially around Financial Service Providers
For more details, including on the FSC role in coordinating and designing MPC, see here.
Note: The gFSC does not endorse separate MPC clusters or separate MPC chapters (with targets and financial requirements) in the HRP at country level. In case of country-level discussions on this, contact the GST.
Examples of CWG activities: The CWG can define the rate of the cash package, such as Cash for Work activities - a key activity for many FSC partners. It can also be a platform for discussion with mobile and financial services providers for mobile cash transfers, which can lead to decreased transaction costs. Moreover, there are capacity strengthening opportunities within the CWG. See also Examples and good practices on the use of multi-purpose cash in the food security sector (gFSC Global CMWG, 2020) and stories from the field (2021) collected by the CMWG.
Note on Common Guidance and Reporting: Defining coordination arrangements for cash-based programming has long been a work in progress at global/IASC level. Whereas sectoral cash reporting is clear, clarification on how to report MPC within the IASC architecture has been under discussion and remained on an ad hoc basis at country-level. For the FSC, the rule of thumb has been that if the objectives of the transfer primarily are to meet food security needs, the reporting of the transfer should be undertaken by the FSC.
In 2022 however, a new cash coordination model was adopted by the IASC, which clarifies the structure, function, leadership of cash coordination. At global level, a transition plan developed by the Global Cash Advisory Group (CAG) (who also will be addressing issues related to MPC and cash reporting) will facilitate the implementation of the model, which includes the transition of existing CWGs. Check with the GST for updates on guidance and reporting for MPC.
Resources:
- See the Global Cash Advisory Group (CAG) page on the IASC website, the CAG TORs (IASC, 2022) and the CAG Transition Plan (check the CAG pagehttps://interagencystandingcommittee.org/global-cash-advisory-group for updates). See also the new model for cash coordination and see the Caucus on Cash Coordination - Final Outcomes (2022).
- See CaLP’s Cash Coordination 2022 – LIVE timeline for background.
- gFSC CMWG webpage (see 2.6.8).
- The Food Security Cluster Coordinator Cash Transfers Briefing Package (gFSC CMWG, 2017) provides guidance and tools (which can be adapted according to context) for FSC Coordinators on how to coordinate cash assistance. The guidance looks at mainstreaming of cash transfer programming within each of the FSC core functions.
- Examples and Good Practices on the use of Multi-Purpose Cash in the Food Security Sector (gFSC CMWG, 2020).
- Cash for Work (CFW) - Guidance Note (2019) (gFSC, CMWG, 2019).
- Operational Guidance and Toolkit for Multipurpose Cash Grants (By UNHCR, CaLP, DRC, OCHA, Oxfam, Save the Children, WFP, 2015).
Additional Resources:
- WFP: Setting the transfer value for CBT operations – Guidance Note (2022), Essential Needs Assessment Guidance (2020), and Minimum Expenditure Baskets Guidance (2020).
- Cash Learning Partnership (CaLP) MPC Webpage and Calculating the Minimum Expenditure Basket - a Guide to Best Practice (CaLP, 2022).
- UNCCS: UN Common Cash Statement Progress Report (2021) and UN Common Cash Statement Questions & Answers (2020).
- GB Cash Workstream – MPC Outcome Indicators (2019).
- ERC Consortium: Multipurpose Cash Grants - Standard Operating Procedures.
- Lessons Learned Exercise on ESSN Turkey (gFSC, WFP and NORCAP-CashCap, 2018).
- State of the World’s Cash Report 2020 (CaLP, 2020).
- Collaborative Cash Delivery Network (CCD). CCD is a network of 14 of the largest international NGOs who operate in every global humanitarian crisis that provides cash programming.
- Handbook for the UN Resident and Humanitarian Coordinator (IASC, 2021), p 86.