José Levelink
Updated :
Local cost is that part of the budget that is fully under control by the farmers organisation (FO).
As a general rule, local costs are paid by the funds that are transferred into the FO bank account, except in the following situations:
- Payments by the agri-agency on behalf of the FO, for practical reasons (country regulations, timeliness of payments, avoiding transfer costs and exchange losses …). In these cases, the FO must have the full autonomy to decide on the content of the supplied goods / services. The FO asks the agri-agency to pay on its behalf in writing.
- Agri-agencies can exceptionally manage funds for weak organisations while building up the FO-capacity to manage its own funds. This exception must be temporary and must motivated in the project memo (question 1b). The motivation must contain a FO development plan with a timeline. Appropriate FFP targets need to be chosen to monitor the development.
Agri-agency staff working in the target countries do not resort under local costs.