GUIDANCE NOTE: 2012 FIELD LEVEL AGREMEEMENT BUDGET
NGO Partnerships Office (OSR) and Project Budget and Programming Service
(RMBP) (2013)
This guidance note explains how WFP’s new FLA budget template is structured and
filled in, how payments to cooperating partners are calculated, and how WFP’s cost
categories are associated with the different cost items in the FLA budget.
WFP introduced a revised Field-Level Agreement (FLA) format on 31 December 2012.
The new FLA is now compulsory for all Country Offices. Accompanying changes were
made in the budget template in order to ensure it corresponds to WFP’s new financial
framework and allows for the inclusion of multiple food assistance tools (food, cash
and vouchers, and capacity development) in a single FLA budget.
USING THE BUDGET TEMPLATE
The FLA budget template consists of one standard excel document with separate
worksheets. Most of the cells in the template are interlinked through formulae.
Therefore, please do not attempt to modify the template, or copy and paste cell values
as this breaks the formulae. When filling out the template, note that:



Yellow cells can be filled in by the user.
Green cells in schedule 1 (the total budget) with a hyphen cannot be modified
by the user. They are connected with formulae to schedules 2 and 3, or
otherwise protected. Once cells in schedules 2 and 3 are filled in, values
automatically appear in these green cells in schedule 1. This is also the case
for administrative and programme staff costs in schedule 2, the values for which
automatically derive from schedule 3 containing details on the staff costs. (See
description of schedules below.)
Grey cells are not applicable to the modality of assistance, or the column
where they are located, and therefore cannot be filled in by the user.
Cooperating Partner's Costs
I. Landside Transport, Storage and Handling (LTSH)
Storage-related Equipment and Services
Handling, casual labour
Warehouse staff (see schedule 3)
Warehouse rental
Pallets
Cleaning
Fumigation
Other (specify)
$
Note A
-
$
Green: linked
to other
$ with formulae
$
worksheets or otherwise protected,
therefore not to be filled in
$
$
Yellow: to be filled in
- modality,
Grey: not applicable to this
therefore not to be filled in-
-
Three worksheets linked together through formulae
The budget template document consists of three separate schedules, or worksheets,
that are linked together through formulae:
1. Schedule 1 contains the overview of the entire FLA budget.
2. Schedule 2 details the management and administration costs at the main office
and sub office-levels.
3. Schedule 3 details the staff costs at the main and sub office-levels
1
NGO Partnerships Office (OSR) and Project Budget and Programming Service (RMBP):
FLA Budget Guidance Note
Additional schedules can be drafted by the user to complement the existing template.
In fact, for technical or specialist services, an additional, detailed budget is required.
It is recommended that you start filling out the budget from schedules 2 and 3 (on
management and administration costs and staff costs), because figures entered in
these schedules automatically generate figures into the green cells in schedule 1.
A budget narrative should always accompany the budget template. This narrative can
be written in a separate file or in one of the blank sheets in the budget template.
Different columns for different tools of assistance
An important change is that the FLA budget now accommodates the different tools of
food assistance cooperating partners may implement with WFP in one. These tools
are food; cash and vouchers; and ‘other’ that refers to capacity development. These
tools represent the three columns of the budget template.
The rows of the budget refer to five sections of costs: landside transport, storage and
handling; cash and voucher delivery; technical and specialist services; management
and administration; and the management fee (now established at 7 percent). Yet, not
all the cost sections apply to all tools, as illustrated in the table:
Cooperating Partners’ Costs
I. Landside transport, storage and
handling
II. Cash and voucher delivery
III. Technical/specialist services
IV. Management and administration
V. Management fee (7%)
Tools
Food
Not applicable
Cash & Vouchers
Other (or CD&A)
Not applicable
Not applicable
Not applicable
For instance, LTSH applies only to food; and cash and voucher delivery only to cash
and voucher programming. The columns are filled in depending on the tool utilised
under the FLA. For instance, if food is the only transfer provided under the FLA, only
the food column is used. If the FLA contains e.g. both food and vouchers, both the
food and the cash and voucher columns are used.
The share of management and administration costs, such as office rent,
corresponding to the different tools should be allocated correctly and justified in the
narrative. Importantly, costs should never be budgeted twice.
A column for cooperating partner contributions
Cooperating partners can contribute resources that can complement WFP funding,
and this is captured in the budget. CP contributions are inserted in schedule 2 on
management and administration costs (also including contributions to staff costs, the
WFP share of which is inserted in schedule 3). These automatically feed into schedule
1 where additional CP contributions can be inputted in the CP contribution column.
2
NGO Partnerships Office (OSR) and Project Budget and Programming Service (RMBP):
FLA Budget Guidance Note
Schedule1 - Cooperating Partner's Budget
Partner
Int. NGO ABC
Period (No. of Months)
This column refers to any contribution to the budget made by
the cooperating partner
Funded by WFP
Food
C&V
Other
Total
CP
Total
$
Note A
$
$
$
$
$
Transfer Value - Food, Cash, Vouchers
Transfers - Metric Tons of Food
Cooperating Partner's Costs
I. Landside Transport, Storage and Handling (LTSH)
Storage-related Equipment and Services
Handling, casual labour
Warehouse staff (see schedule 3)
Warehouse rental
Pallets
-
-
-
Fixed and variable costs no longer separated in the budget
Whereas in the previous budget, time-bound (fixed) and tonnage-bound (variable)
costs were separated, in the new budget, this distinction is no longer made. It can be
said that fixed costs are generally associated with management and administration
and variable costs with LTSH and cash & voucher delivery activities.
The payment of fixed costs incurred by the partner - due for instance to a prolonged
interruption or a break in the pipeline - can be negotiated between WFP and the
partner (see FLA annex 1A-1D, special provision on payments). To make these
negotiations easier, it is useful to agree on which cost items are fixed and which items
variable early on and state these in the budget narrative. While fixed costs are at the
discretion of NGO management, a reasonable discussion can take place between
WFP and the partner to identify any potential ways to reduce or eliminate some of
these costs during the break or drop in the volume of distribution.
COST LINE ITEMS UNDER DIFFERENT TOOLS
As mentioned, the budget now accommodates food or in-kind transfers; cash and
voucher transfers; as well as activities involving no transfer to beneficiaries (‘other’); as
well as any combination of these.
Food
For food-based programming, the cost line items are similar to those in the previous
FLA budget. The variable or tonnage-bound costs are now listed under the LTSH
section (I) and the fixed, or time-bound, costs under the management and
administration section (IV), except for technical or specialist services, which are now
introduced as a separate section (III):



LTSH costs are related to storage, equipment and services, food management,
and transport and distribution services, including the staff required for these.
Technical or specialist services cover assessments, evaluations, studies,
survey, missions, and capacity development for food programming. (A detailed
budget of these costs must be drafted and attached.)
Management and administration costs related to food may include fixed or
time-bound costs: staff, recurring costs (e.g. rental, light vehicles), and
equipment. When the partner is implementing multiple tools of assistance,
common costs, such as rent and management staff, should be shared across
the modalities, while ensuring that they are not budgeted several times.
3
NGO Partnerships Office (OSR) and Project Budget and Programming Service (RMBP):
FLA Budget Guidance Note
Cash and vouchers (C&V)
The cash and voucher column is used if cooperating partners are involved in
distributing cash transfers directly or through an intermediary; in reimbursing retailers
for the redemption of vouchers; or in supporting the implementation and/or monitoring
of cash and voucher programmes. LTSH is the only cost section not applicable to cash
and vouchers.



Cash and voucher delivery costs are solely applicable to C&V distribution.
These costs include IT hardware and software necessary for transferring cash
or redeeming vouchers, consumables, commercial service fees (bank charges),
distribution cost, and C&V distribution staff (local non-fixed term staff and
consultants).
Technical or specialist services include assessments, evaluations, studies,
surveys, missions, and capacity development for C&V voucher programming.
(A detailed budget of these costs must be drafted and attached.)
Management and administration costs for C&V may include fixed or timebound management and administration, such as staff, recurring costs (such as
rental, light vehicles); and equipment. When the partner is implementing
multiple modalities of assistance, common costs, such as rent and
management staff, should be shared across the modalities, while ensuring that
they are not budgeted several times.
Other
This column is used when the cooperating partner carries out activities that do not
involve any form of transfer to beneficiaries, namely capacity development and
augmentation (CD&A), which according to our new Financial Framework
encompasses activities to develop the capacity of national authorities or government
to manage food security programmes - often related to hand-over of WFP
programmes - or to improve a programme the government already manages. If the
partner conducts activities aimed at supporting governments in implementing
programmes to which WFP provides food, cash or vouchers, the costs should not be
budgeted under “other” but under the food or cash and vouchers columns.
Two sections of costs may apply to these activities:
 Technical or specialist services, such as assessments, evaluations, studies,
surveys, missions meant to support capacity development.
 Management & administration, namely staff, recurring costs (such as rental,
light vehicles); and equipment and other costs necessary for these activities.
PAYMENT CALCULATION BY MODALITY
There are three ways to calculate payments to cooperating partners under the FLA:
 for food, payment is done based on a rate per MT, calculated as budgeted cost
divided by budgeted tonnage, as was done under the previous FLA versions;
 for C&V, payment for C&V delivery costs as well as technical and specialist
services is done based on actuals, and payments administration and
management costs under C&V done based on a percentage, the percentage
being: total budgeted management and administration costs divided by total
budgeted C&V delivery and technical and specialist service costs; and
4
NGO Partnerships Office (OSR) and Project Budget and Programming Service (RMBP):
FLA Budget Guidance Note

for technical or specialist services, payment is done upon actual services
rendered.
Management and administration payments are based either on the metric tons of food
distributed, the C&V delivery costs and/or technical services delivered, or on the
technical and specialist services delivered in the case that no food or C&V are
delivered (“other”). The management fee of seven percent of the payable amount of
the partner’s total direct costs is added to each payment, without any need for
additional documentation.
Find below a summary of these calculation methods:
Cooperating Partner’s
Costs
I. Landside transport,
storage and handling
(LTSH)
Distribution Modalities
Food
Note A: Rate per metric
ton: MT distributed * rate
per MT (rate
automatically calculated
and generated through a
formula)
Cash & Vouchers
Other (or CD&A)
Not applicable
Not applicable
Note B: Actual cost of
services as per invoice
or statement submitted
Note B: Actual cost of
services as per invoice
or statement submitted
Note C: actual C&V
delivery + technical or
specialist service costs *
percentage. (The % is
automatically calculated
and generated through a
formula)
II. Cash and voucher
delivery
Not applicable
III.Technical/specialist
services
Note B: Actual cost of
services as per invoice
or statement submitted
IV. Management and
administration
Note A: Rate per metric
ton: Mgt and admin rate
per MT is automatically
calculated and
generated through a
formula.
Total Cooperating
Partner’s Direct Costs
(I+II+III+IV)
Total CP’s Direct Costs
(I+II+III+IV)
Total CP’s Direct Costs
(I+II+III+IV)
Total CP’s Direct Costs
(I+II+III+IV)
V. Management fee
(7%)
Note E:
7% * payable amount for
Total Cooperating
Partner’s Direct Costs.
Note E:
7% * payable amount for
Total Cooperating
Partner’s Direct Costs
Note E:
7% * payable amount for
Total Cooperating
Partner’s Direct Costs
Not applicable
Note B: Actual cost of
services as per invoice
or statement submitted
Note D: specialised
services
rendered*percentage
(The % is automatically
calculated and
generated though a
formula)
WFP COST CATEGORIES AND FLA COST ITEMS
WFP staff should note that different FLA budget line items correspond to different
WFP cost categories (LTSH, ODOC food, C&V Related, CD&A, DSC). The following
table explains these linkages:
Cooperating Partner's Costs
Food
C&V
Other (or
CD&A)
I. Landside Transport, Storage and Handling
(LTSH)
Storage-related Equipment and Services
LTSH
Not applicable
Not
applicable
Food Management and Services
5
NGO Partnerships Office (OSR) and Project Budget and Programming Service (RMBP):
FLA Budget Guidance Note
Transport and Distribution Services
II. Cash and Voucher Delivery
IT hardware and software
Consumables
Commercial service fees
Not applicable
C&V Related
2
Costs
(C&V Delivery)
Not
applicable
ODOC food or
1
DSC
C&V Related
(C&V other) or
1
DSC
CD&A or
1
DSC
ODOC food
C&V Related
(C&V other)
CD&A
Distribution costs
Cash & voucher distribution staff (see schedule 3)
III. Technical/Specialist Services
Assessments/pre-appraisal
Evaluations/surveys
Studies and missions
Capacity development
Food Transformation (e.g. milling)
Other – describe
IV. Management and Administration
Staff and related costs
Recurring costs
3
Equipment and Other
C&V Related
CD&A
(C&V other)
(1) Assessments, Evaluations, and Monitoring costs (ODOC VS DSC): These costs could be charged
against ODOC, C&V related, or DSC depending upon who is the primary user of the reports. When
these activities carried out by CP for their own distribution monitoring or for CP’s own benefit,
costs are to be charged under ODOC food (if related to food distribution) or C&V Related (if related
to C&V distribution).When carried out for the purpose of providing services to the Government in
the absence of national capacity (Government is the primary user), costs would be charged against
CD&A. When carried out for the purpose of informing WFP’s programme design and response or
required specifically for WFP’s internal and external monitoring, reporting and evaluation, i.e. WFP
is the primary user of the information, costs are to be charged under DSC.
(2) Cash & Voucher Related Costs: It is the combination of (a) Cash & Vouchers Delivery (C&V
Delivery) which includes set-up and operating of C&V delivery mechanism e.g. system hardware,
software and ICT services for corporate electronic vouchers, voucher printing, consumables (logbooks, debit cards, etc.); commercial service providers such as IT/telecommunications, banks, cash
agents, retailers and security companies; and equipment; (b) Cash & Vouchers Other (C&V
other) which includes costs incurred by CP’s for Technical/specialist services and Management &
administration and the management fee.
(3) CD&A: The cost of activities/ items aimed at establishing or improving national ownership of a food
security programme, or technical assistance to national government to enhance/improve an ongoing national food and nutrition security programme, EPR, school feeding, and other related
activities (for instance, an expert who works with national counterparts to help design national
systems to eventually take over full responsibility of the food/cash-based activity). Activities and
items that are required to implement an on-going food or C&V activity, regardless of who "owns" the
programme (i.e. Government or WFP) are also not included in CD&A. These excluded costs are:
non-food items distributed to beneficiaries; staff or running costs paid to CPs to implement WFP
food or C&V activities; and incidental trainings directly related to on-going food or C&V activities. All
these will continue to be covered under ODOC Food and C&V Related Costs.
V. Management Fee 7%
ODOC food
6