B10 Aid Spending: Which Formal Exchange to use with development partners? - Text

Background

DFID provides development partners with finance and/or technical assistance. Circumstances surrounding funding will influence the choice of DFID's formal exchange, including consideration of partner's documentation.

Compliance Tasks

1. You must refer to both links under Processes and Tools : Aid Spending: Which Formal Exchange to use with development partners? -Text and Aid Spending: Which Formal Exchange to use with development partners? - Flowchart.

Task assigned to: Project Staff

2. All proposals for Non-Grant Financial Instruments (NGFIs), Trusts or Endowment Funds must be submitted to FCPD Information Desk for clearance before any formal submission is made (see Processes and Tools).

Task assigned to: Head of Department, Project Staff

3. Where using DFID's format, staff must download the Formal Exchange Templates from Office templates available on Word

Task assigned to: Project Staff.

4. All Formal Exchanges, once signed by partners, must be saved in Quest in the appropriate project live folders.

Task assigned to: Project Staff

Risks of non-compliance

• DFID funds could be used for purposes other than originally intended and lead to fraud or non-compliance with the International Development Act 2002
• Confusion as to the responsibilities of DFID and the recipient
• Waste of resources negotiating Memoranda of Understanding (MoUs) when there are accepted templates available.