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Fighting Hunger Worldwide WFP CASH AND VOUCHERS From Food Aid to Food Assistance

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WFP CASH AND VOUCHERS From Food Aid to Food Assistance

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C&V in WFP’s corporate strategy

•  Initially introduced in May 2007

•  Cash for Change initiative launched in Nov 2010 –  Develop corporate capacity –  Establish systems and processes to take C&V to scale

•  WFP’s strategic plan 2008-2013:

‘WFP has an array of programmes to help communities

reinforce their essential food and nutrition security

systems and infrastructures, as well as their adaptability

to climate change—including voucher, cash and food-

based safety nets’.

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C&V in East and Central Africa

Country Focus C&V value Modality End date

Burundi Dev. 325,000 Voucher Dec-14

R&R 82,000 Voucher Dec-12

Congo Safety nets 1,203,000 Voucher Jun-12

DRC R&R 1,000,000 C&V Dec-12

Djibouti Education 2,000,000 Voucher Dec-12

Ethiopia Dev. 3,700,000 Voucher Dec-15

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C&V in East & Central Africa - 2

Country Focus C&V value Modality End date Kenya R&R Cash Apr-15

Refugees 2,600,00 Voucher Nov-13

Somalia R&R 1,000,000 Vouchers Dec-12

Uganda Dev. 8,000,000 Cash Nov-14

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C&V in East and Central Africa

•  Around USD 22 million

•  About 5% of the total volume of assistance

•  2015 target: 30%

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PROGRAMME: Targeted Supplementary Feeding Programme (Family Ration only)

BENEFICIARIES: 15,600 beneficiaries (2600 households)

LOCATION: 10 TSFP sites in Burao district

START MONTH: February ration

PARTNERS: DRC and Medair

VOUCHER TYPE: Conditional cash voucher (general commodities & meat)

Fresh Food Vouchers Case Study - Somalia

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•  Voucher values vary between programme and region

•  Calculation based on food MEB, split into small vouchers

Paper Vouchers

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Evaluation Findings

Dietary diversity

Increased compared to traditional food basket: Rice, wheat flour, pasta, vegetable oil, sugar, fresh meat, tuna and dates

Beneficiary satisfaction

High satisfaction with quality (94%), choice (95%) and security redeeming vouchers at traders (100%)

Food utilisation

A higher proportion of the food basket was consumed in the household (99%) with vouchers as compared to in-kind (74%).

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Paper Voucher Challenges

Supply Chain Management

Voucher pre-production, print, logistics, warehousing and distribution challenges.

Security

Managing fraudulent voucher usage, duplication, theft or damage.

Monitoring and Evaluation

Efficiently and effectively report on voucher use.

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E-Vouchers

Supply Chain Management

E-Vouchers mitigate supply chain complexities of paper vouchers and are adaptable to other programmes

Security

•  Beneficiaries are registered and issued with an E-Voucher card. •  E-Voucher is used to distribute entitlements per beneficiary. •  Added security features e.g. biometric data (FoodNet)

Monitoring and Evaluation

Ability to report on beneficiary consumption centrally (FoodNet)

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Legacy Transfer Solutions FoodNet’s Transfer Solution

Finance Logistics

Operations

Common information and

tools

n Procedure-specific approach

n Non-integrated solutions

n Standard solutions/processes across all functions for each modality

n Established SLAs and technologies

Finance Logistics

C&V Operations

FoodNet – Business Case

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FoodNet – Key Functionality

Single Beneficiary registration and enrolment repository

•  Online/ Offline beneficiary enrolment on to a project activity

•  Ability to capture beneficiary biometric information.

Manage distribution of entitlements

•  In kind: Ration composition and amount per project/

beneficiary(s)

•  Cash and Voucher distribution.

Reconciliation and Settlement

Reconcile between different ‘actors’ (WFP, CP, FSP, Retailer…)

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e FoodNet in Cash and Vouchers

Fina

nce

Pro

gram

me

Consolidated Process to Setup and Roll-out Voucher and Cash based Interventions

Pro

cure

men

tLo

gist

ics

ICT

Needs?

Stop

Food Security, Nutrition, Market

N

Government Policies

Local Market and Retail

Sector Assessment

CPs Capacity Assessment

Financial Sector

Assessment

ICT Capacity Assessment

Effectiveness and

Operational Risks Analysis

Cost-efficiency (LTSH vs C&V

cost matrix

Transfer Modality Selection

CPs Selection

Shops and Retailers

Selection (for vouchers)

Financial Service Provider Selection

IT solution Selection and

testing

RfPs issued and analysed

Standard Operating

Procedures

Beneficiary Registration

Distribution Planning and Cash Transfer

Request

Resources availability

Certification

Authorize Transfer to Dedicated Account

PDM Cash or

Vouchers

Monitor Vouchers

Redemption

Monitor FSP Cash

Disbursement

Reconciliation Beneficiary

numbers from CPs with

amount Cash/Vouchers distributed

Request CPs Services Payment

Reconciliation Cash

Disbursed

Reconciliation Vouchers

Redeemed

Reconciliation Cash

Transferred with Payments Authorized or Requested

Authorize CPs, FSP and Retailers Payments

Contracts Signed

Authorize Payments/

Vouchers to Beneficiaries

Request FSP Services Payment

Request Retailers Payment

Train Partners in use of IT

solutionSupport use of

IT solution within WFP

and Partners

Y

Needs Assessment and Response Analysis Intervention Setup Implementation Distribution Reporting

White boxes – out of scope Coloured boxes – in scope

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Why FoodNet

Integrated global beneficiary database

•  Corporate IT solution for C&V

Integrated business processes between business functions

•  Programme, Finance, Logistics etc.

Mitigate security risks e.g. beneficiary biometrics

WFP HQ development and support

•  Leverage off a globally supported solution.

Long-term integration into WFP corporate processes

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Thank you!

Q & A