Sida guidelines for cooperation with partner organisations within the CSO-strategy

In cases where the partner organisation forwards funds, the internationally agreed principles for aid and development effectiveness shall be followed. Sida assesses how these principles have been integrated, focusing on:

National/local ownership. It is important that organisations are firmly rooted in the contexts in which they operate and act with legitimacy and representativeness in relation to the target group of their activities. Projects and programmes should be based on the implementing partners’ own priorities (e.g. their strategic plans) and the needs they have identified. These should, in turn, relate to national development plans or similar documents wherever possible. To strengthen local ownership, according to the strategy Sida shall also work to increase the proportion of support that reaches local organisations in ODA eligible countries. For more information, see the section on key ratios.

ODA recipients: countries, territories, and international organisations

Focus on results. All actors should focus on achieving and monitoring established targets and take responsibility for improving results by continuously and systematically learning from the implementation of their activities.

Inclusive partnerships. Priorities and objectives should be defined through an inclusive process in which various stakeholders in society are given the opportunity to participate meaningfully. The diverse needs, experiences and skills of all stakeholders should be taken into account in the collaboration.

Transparency and mutual accountability. Development cooperation should be transparent and carried out under the joint responsibility of all parties involved. All parties should be able to hold one another to account, for example in cases of suspected corruption or if something is not working as intended.

Adaptation to the implementing partners implementing partners own systems for planning, implementation, monitoring and reporting.

Flexible and predictable funding. Implementing partner organisations need to be given the scope to adapt their activities where necessary, for example in response to changes in the context. Implementing partner organisations should be given the opportunity for strategic planning through longer agreement periods. With regard to the form of funding, a programme-based approach (in the form of core support or programme support) is recommended as a priority, in order to strengthen ownership on the part of the implementing partner.

Harmonisation and coordination with other donors providing support to implementing partners, with a view to reduce their administrative burden. Multiple Sida partner organisations should not fund the same implementing partner unless the need for and added value of doing so can be clearly justified.

Alternative payment methods refer to payment solutions that can be used when a standard bank transfer to the implementing partners bank account is not possible, appropriate or feasible. This may, for example, apply to situations where there is no functioning banking system or where the security situation makes standard payments impossible

According to Sida’s general conditions, Article 9.6, payments to an implementing partners shall be made by bank transfer, and the funds shall be held in a bank account. The implementing partners bank account should be jointly signed by two people.

The use of alternative payment methods may only be permitted following a specific assessment. Sida may, following such an assessment, grant an exemption for the use of alternative payment methods. Alternative payment methods shall be used restrictively, and only in cases where no other options for carrying out the activity are deemed feasible.

Bank transfers are the most widely accepted and secure method of transferring money internationally. Using banks also entails a lower risk of money laundering and the financing of illegal activities. As alternative payment methods may involve increased risks, strict requirements are imposed in terms of checks, documentation and follow-up.

If the partner organisation requires an exemption to use alternative payment methods, or has any queries regarding the applicable rules, it shall contact Sida. See also Annex 1 for further information.

This guide supplements the conditions of the agreement and the annexes thereto, which set out Sida’s requirements regarding external audits:

Sida’s Requirements for Annual Audit

Further clarification:

• The auditor shall sign the financial report. Sida accepts digital signatures as the audit report is an external document submitted to the partner organisation. Please note, however, that Sida does not accept digitally signed documents created by the partner organisation; for example, the management response shall be physically signed unless it forms part of the audit report.
• With regard to time reporting under “Agreed-Upon Procedures”, SNT 4400, the following applies: time spent on a project shall be documented on an ongoing basis. The partner organisation decides which method, system or percentage agreement is to be applied. The results shall be reviewed and approved by the manager on an ongoing basis. Approval shall be documented on an ongoing basis. Any discrepancies from the actual results shall be capable of being corrected. There shall be a verifiable link between the time reported and the cost charged for the project that can be verified by the auditor.
• If an audit in the subsequent stages applies to an implementing partner receiving core funding, the requirement is for an annual report and an unaudited financial report, both of which shall be signed by an auditor. The unaudited financial report shall include:
• All of the organisation’s income.
• A comparison between the actual costs of operations for the reporting period in question and the budgeted costs for the same period.
• Information on interest and/or unspent funds.
• An explanation of any discrepancies between the approved budget and the costs recorded in the accounts.
• A list of any amounts that have been forwarded to other parties where an exemption has been granted for forwarding of funds in more than one stages.

See Sida guidelines regarding Budget and Financial reporting for programmes and Budget and Financial reporting for core support here:

Budget and Financial reporting for programmes

Budget and Financial reporting for core support

For partner organisations that forward funds, Sida approves a total budget at an aggregate level. However, partner organisations should themselves have budgets at a detailed level that enable an analysis of the reasonableness of costs on an annual basis in relation to the results expected to be achieved. Sida does not have a mandatory budget template. The organisation’s own template may be used. However, in order for Sida to be able to assess the budget, there are certain budget items that must be included; see Appendix 2 for examples of budget formats. See also section Key ratios and Appendix 3 regarding key ratios. The financial report shall follow the same structure as the budget. The budget should be presented in the currency in which the organisation keeps its accounts; Swedish organisations budget in Swedish kronor and other organisations budget in local currency, but Sida’s grant must also be specified in Swedish kronor. The current exchange rate shall be included.

Direct-implementing partner organisations may use the budget example in Annex 2 as a basis, although the budget is generally more detailed at the activity level, i.e. an activity-based budget may be included. Sida has no requirement for direct-implementing partner organisations to report key ratios.

For Swedish partner organisations with agreements for Sida grants of up to 5 million kronor per year, examples of budget templates are provided in conjunction with the call for proposals.

Income

The following information on incomes shall be included in the budget:

• Sida’s grant.
• Partner organisations based in non-ODA countries that receive grants from the CSO appropriation for their development cooperation must finance at least 15 % of the activities from their own funds. The minimum level of own funds is set out in the strategy.

Own funds may only consist of liquid funds raised, for example in the form of donations, sponsorship, membership fees, lottery proceeds and revenue from the sale of goods and services. Own funds cannot be financed through other public funds.

If an amount greater than 15 % is allocated as own funds in the agreed budget, this is binding and cannot be changed without Sida’s approval.

There is no requirement for own funds for partners based in ODA eligible countries. See more here:

ODA eligible countries

Costs

Sida awards grants for direct and indirect costs. The following information shall be provided for each category:

Direct costs

Costs for activities and staff directly related to development cooperation should be divided (for example, by sub-headings) between:

• Disbursements to implementing partners in ODA eligible countries (applies only to partner organisations that forward funds). Se more here:

ODA eligible countries

• Disbursements to implementing partners in non-ODA eligible countries (applies only to partner organisations that forward funds).
• Direct costs of the partner organisation.

Costs incurred by the partner organisation should be divided into relevant sub-headings, such as salary and travel costs, direct activity costs, costs for capacity strengthening to implementing partner organisations, costs for advocacy work, monitoring and reporting, evaluation, audit of the entire programme, and costs for regional and country offices.

Sida does not approve budget items for unforeseen or ‘other’ costs. However, there may be budget items that are less clearly defined, such as calls for proposals, innovative projects, emergency funds, etc., where there is greater uncertainty as to whether the entire budget item will be used or not. For Sida to approve this, the partner organisation shall provide guidelines or criteria on how this budget item is to be used. If the monitoring and reporting procedures differ from those for other funds, this should also be specified. If the budget item involves a higher level of risk, it should be made clear how the partner organisation will manage these risks. A specific condition regarding reporting on the use of the budget item will also be included in the agreement with Sida.

Regarding support to non-formal actors, see section about Informal actors (FORWARDING OF FUNDS).

Regarding own funds for EU or other development finance providers, see section OWN CONTRIBUTION EU OR OTHER DEVELOPMENT DONORS.

Indirect costs

Indirect costs are costs that are not directly related to programme and project activities but which indirectly support them, such as finance staff, management, legal support, IT, rent, skills development for the partner organisation’s employees and office supplies.

It is common for organisations to use an allocation formula for indirect costs (overheads), i.e. a calculation of how the cost of indirect costs is allocated. In such cases, Sida needs to be provided with this model. It is important that all costs can be traced back to activities receiving Sida support and that they can be verified.

Indirect costs incurred by implementing partners are treated as direct costs, as are costs for regional and country offices.

Non-eligible costs

Article 8.2 of the General Conditions of the agreement with Sida sets out the rules regarding non-eligible costs. In addition, Sida takes a restrictive approach to approving salary bonuses. See also Article 6.3 of the General Conditions regarding exchange rate gains and losses.

Key ratios

Organisations based in countries that are not eligible for ODA shall report on a number of key ratios in the budget and the financial report. The total budget includes own funds and shall be included in the key ratios. The form may be attached as an annex to the budget or included within the budget itself. See Annex 3: Key ratios.

Key ratio 1

This should include total disbursements to implementing partners in ODA countries made under a formal agreement. Payments to national, regional and head offices within the organisation, or between national/regional organisations in ODA countries and their local branches, should not be included in this key ratio [3].

Key ratio 2

Should include costs that are not paid to implementing partners in ODA countries but which nevertheless directly strengthen their capacity. This may include costs for training, consultancy services and technical support that directly affect the ability of implementing partners to act independently and effectively. The amounts in Key ratio 2 should be allocated based on where the costs are incurred. It may also include direct support to informal actors who are unable to enter into agreements and are therefore not included in Key ratio 1.

Costs relating to the preparation, administration, monitoring and auditing of partners’ activities are not included in Key ratio 2, even though these measures may indirectly strengthen the partner’s capacity. Such costs should be included in the organisation’s own direct and indirect costs.

Key ratio 3

Direct and indirect costs incurred by implementing partners are not included in Key Figure 3. Costs should be itemised so that it is clear which costs relate to the head office, regional offices and country offices. Any costs retained by partners outside ODA countries should also be itemised and reported. Costs included in Key ratio 2 are excluded from Key ratio 3.

Costs in the home country and ODA countries:

Partner organisations based outside ODA countries shall report how much of the budget is allocated to costs for implementing partners in ODA countries and how much is allocated to costs in the home country, i.e. a non-ODA country.

Budget revision

The agreement specifies when an updated budget shall be submitted to Sida. This is usually once a year, but may also be in connection with a disbursement request or when the partner organisation deems it necessary. The threshold for when Sida must approve budget changes is set out in the agreement. Please note, however, that changes to the budget line item for salaries, fees and indirect costs must always be approved by Sida, regardless of the amount being changed. The revised budget shall be drawn up in the same format as the approved budget in the agreement. It should be clearly stated which figures represent the agreed budget and which represent the new budget proposal. Carry-overs from the previous year shall be clearly shown in the budget. If the carry-overs are substantial or if the partner anticipates that it will not be possible to utilise the entire budget during the current year, it is possible to reallocate funds between years. However, it is important to discuss this with Sida, as it depends on the available budgetary scope. Major changes to the updated budget should always be explained in narrative form. Specify the budget items from which and to which funds have been transferred.

[3] According to OECD/DAC:s toolkit “Funding Civil Society in Partner countries” (2023): Provider country or international CSOs from the global North that are either based in provider or other global North countries or have branches or bases in partner countries are not considered as partner country CSOs, even if they operate in partner countries.

Sida defines corruption as the abuse of trust, power or position for improper gain. Corruption may include, amongst other things, bribery, fraud, embezzlement, conflicts of interest and nepotism. Irregularities is a broader term that encompasses breaches of agreement and violations of rules that do not necessarily fall within the definition of corruption. Irregularities also include misconduct such as bullying, harassment, reprisals, and sexual exploitation, abuse and harassment (SEAH). Sida’s approach to corruption and other irregularities, as reflected in Sida’s anti-corruption policy, is to: always prevent, never accept, always report and always act.

Reporting to Sida

Types of cases to be reported

Under the terms of the agreement, all suspected cases of corruption and other irregularities must be reported immediately to Sida. This also applies to any other use of funds that is not in accordance with the agreement.

Non-compliance also include, for example, late reporting despite reminders, costs lacking supporting documentation, or costs incurred outside the approved budget.  Allegations of sexual exploitation, sexual abuse and harassment (SEAH) must also be reported to Sida in accordance with the agreement. Reporting must be carried out in a manner that does not jeopardise the safety of the persons concerned.

Cases may also relate to ethical issues and values. Sida maintains an ongoing dialogue with its partner organisations on these matters. From an agreement perspective, it is difficult to cover every conceivable situation that may arise. Transparency requires that, as soon as challenges arise or there are suspicions of irregularities or ethical issues, both parties are obliged to inform each other and raise the matter for discussion.

Please note that in cases where an implementing partner receives funding from Sida in the form of core support, all cases must be reported to Sida, as core support constitutes funding for the entire operation.

Reporting of cases of corruption and other irregularities

Under the terms of the agreement, the partner organisation has a duty to inform Sida as soon as a case of suspected corruption or other irregularities arise. It is better to report ‘too early’ and then close the case if it transpires that there was no evidence to support the allegations. It may be relevant to report instances of non-compliance within the organisation’s operations even if Sida’s funds are not involved, for example in cases of corruption at management level.

A case must always be reported to Sida. A report of suspected cases of corruption and other irregularities in a project or programme can be made using a specific template (see Appendix 5). Fill in all available information under the headings ‘Key information’ and ‘Background’ when first reporting the matter.

Updates to a case shall be made on an ongoing basis as new and relevant information comes to light, by updating the form. Update the information continuously under ‘Action taken and planned’ in chronological order. Sida requires a thorough basis on which to assess the partner organisation’s handling of the case and to make a well-informed decision on further action.

Yearly summary of reported cases of corruption and other irregularities

In addition to reporting on each individual case concerning all partner organisations, partner organisation who forward funds and receive Sida grants of more than 5 million kronor per year must also submit an annual summary of reported cases of corruption and other irregularities. All cases reported or dealt with during the year shall be listed annually and submitted to Sida by 15 January. The list shall contain up-to-date information on cases dealt with and their status (even if they were closed during the year). Details of the names of implementing partners and any other sensitive information may be anonymised if necessary. Please contact Sida if further guidance is required.

Cases where the use of grant funds cannot be reported to Sida in accordance with the agreement shall always be reported under ‘Project reporting not yet submitted’ in the annual financial report (see Annex 2). This report shall include the implementing partner concerned, the country, the year and the total project amount, as well as the unreported amount.

Handling of the case

The partner organisation’s responsibility for the case

The partner organisation bears full responsibility for handling cases of corruption and other irregularities and for applying its internal systems and procedures, but shall consult Sida as necessary during the course of the process.

The general rule is that suspected corruption or other irregularities must be investigated, regardless of the amount suspected to have been misused. Cases of SEAH must always be reported, but in a way that protects the identity of those involved. The appropriate type of investigation is assessed on a case-by-case basis. The apparent seriousness of the suspicion is taken into account. Sometimes, even cases initially assessed as involving small sums may, upon investigation, prove to be significantly larger. The fact that the amount is small is not always a reason to refrain from, for example, a forensic audit.

Forensic audits or other investigation reports are shared with Sida on request. Sida may also, in addition to the partner organisation’s own investigation, carry out a special review of the case. If the matter concerns the partner organisation’s structure (head office/regional office/country office), Sida shall be involved in the investigation and determine whether Sida or the partner organisation is best placed to conduct the investigation. In cases where Sida conducts the investigation, Sida bears the cost of this.

Sida’s responsibility for the case

Sida has a clear mandate to investigate instances where funds have been misused. Sida endeavours to handle these investigations as uniformly as possible.

An assessment is made of the partner organisation’s handling of the case, and Sida communicates whether any specific measures are recommended. Sida’s programme officers can also provide advice on the appropriate way to handle the case, drawing on the expertise of anti-corruption investigators, lawyers and other specialists.

Appropriate measures in the event of suspected  corruption

It is important to allocate resources to all measures that can help move the case forward. The general rule is that legal action should be taken where corruption is suspected. Reporting the matter to the police is one of several examples of such measures.

Actions that shall always be considered in cases of suspicion and during an investigation are:

• To suspend further disbursements to the implementing partner until the matter has been investigated. It is reasonable to ensure that a suspicion is confirmed in some way before taking the step of freezing disbursements. This is to avoid the spread of false rumours which can have serious consequences. An assessment shall be made on a case-by-case basis.
• To suspend the individual concerned, if the matter involves an employee of the organisation.
• To issue a written reminder, including a clear deadline, for the submission of the report. The reminder should state what will happen if the report is not submitted.
• To conduct an internal investigation into the matter, to clarify what has taken place.
• To carry out an external investigation into the matter to clarify what has happened. This may, for example, involve an additional audit with a specific mandate to examine certain supporting documents more thoroughly, or a forensic audit to determine whether there is evidence of suspected irregularities.
• To assess the extent to which activities have taken place in accordance with plans and agreements, and what evidence supports this (if the financial reporting has not been approved).
• Seeking advice from local experts on what actions can be taken in the current context, such as local lawyers, auditors, other civil society organisations on the ground or embassy staff. If the embassy in the country in question is contacted, the responsible programme officer at Sida must be informed of this.

Actions that shall always be considered in cases of a confirmed suspicion:

• A written demand for repayment, citing a breach of agreement. This should include a clear deadline, as well as information on what will happen if repayment is not made.
• A report to the Enforcement Authority if repayment has not been made.
• A police report, if a criminal offence is suspected. A copy of the police report should be attached to the report submitted to Sida.
• Filing of a civil claim, if the matter concerns a breach of agreement.
• A report to the relevant anti-corruption agency, the authority responsible for registering civil society organisations, or similar body.
• If the organisation in question has gone into bankruptcy or liquidation, evidence of this must be obtained; a copy should be attached to the report submitted to Sida.
• Contact any other donors and inform them of the matter.

If a particular course of action is not possible or appropriate, the partner organisation shall provide reasons for this in its report to Sida. Exceptions to the general rule of taking legal action are assessed on a case-by-case basis. The cost or limited prospects of recovering the funds do not, as a rule, constitute grounds for refraining from taking legal action. Factors such as security, the risk of reprisals or unreasonably severe penalties, or a legal system characterised by legal uncertainty and corruption may be taken into account when assessing reasonableness.

To finance an investigation into a case, it is possible to request Sida’s approval for reallocations within the agreed budget, in accordance with the rules stipulated in the agreement.

Forensic audit

Forensic auditing is a tool for securing evidence in an investigation, but there may be other tools that can be used to investigate irregularities, such as a follow-up visit or a special audit with a specific mandate to examine certain supporting documents. The prospects of success in legal proceedings should be assessed when choosing a method of investigation.

If an external investigation is to be commissioned (e.g. a forensic audit), a draft terms of reference may, if necessary, be sent to Sida for approval. A request for approval of the terms of reference shall be sent to the programme officer, who shall respond within one week unless otherwise agreed. If Sida does not respond within the specified timeframe, the terms of reference may be deemed to have been approved.

Closing a case

A case may be reported as closed to Sida in two ways:

1. The partner organisation’s investigation shows that the allegations cannot be substantiated. Sida shall confirm that the case is closed.
2. The partner organisation’s investigation confirms that corruption or other irregularities exists. Any funds involved are to be regarded as unreported to Sida.

In both cases, the partner organisation shall submit a final report on the case to Sida as soon as it considers the case to have been fully resolved, by updating the template accordingly. In the event of confirmed corruption or other irregularities, the ‘Actions taken’ and ‘Planned actions’ sections of the template shall be updated.

Repayment request

In the case of option (b), Sida will assess the information contained in the final report submitted on the matter and decide on the amount that the partner organisation is required to repay to Sida. Forensic audits or other investigation reports should be shared with Sida upon request. If the partner organisation proposes a repayment amount, Sida must be able to verify it on the basis of supporting documentation. The exchange rate applicable at the time the case arose shall be used to convert the amount into Swedish kronor. In the event of a repayment request, a deduction shall be made for the partner organisation’s own funds where the partner organisation is based in a non-ODA country, in accordance with the percentage rate applicable in the year in which the irregularity occurred.

The basic rule is that amounts used for purposes other than those agreed, or which cannot be substantiated by supporting documentation, shall be recovered and repaid to Sida. Non-compliance resulting from external events beyond the partner organisation’s control, such as natural disasters or actions by repressive regimes – for example, confiscated documentation – may be exempted from recovery.

In the case of core support, a proportional estimate is made unless specific sums can be identified.

Disbursement requests shall be submitted to Sida in accordance with the applicable agreement.

The conditions for Sida to disburse funds are as follows:

• There is a signed, valid agreement and the payment is made in accordance with 0the terms of payment set out in the agreement [10],
• A current bank certificate is available to Sida [11],
• A disbursement request has been received by and must be addressed to Sida,
• The disbursement request is physically signed by an authorised signatory and a scanned copy is sent by email,
• There is supporting documentation demonstrating the financial need (this does not apply to the first disbursement).

Bank certificate

Prior to the first disbursement, a bank certificate must be sent to Sida, which will then register the bank details. This applies to all new agreements, regardless of whether the partner organisation has previously entered into an agreement with Sida.

A bank certificate is a document issued by the bank certifying that the account holder holds the bank account to which the certificate relates.

The bank certificate must:

• Be from the current or previous year.
• Contain at least the account holder’s name, account number or IBAN, SWIFT code, the account’s currency and any bank code such as a clearing number (Sweden) or ABA/Fedwire/routing number (USA).
• Be in Swedish or English.

For payments to a Bankgiro or Plusgiro account, Sida requires a printout from the respective Bankgiro or Plusgiro website. The printout must clearly state that it is the payee who holds the Bankgiro or Plusgiro account to which the payment relates.

Drafting a disbursement request

The amount requested during the current year may vary between the two requests, i.e. it may be higher or lower depending on the current financial needs.

The disbursement request must include:

• Addressed to Sida.
• Specific date.
• Specific amount.
• Account number and/or IBAN with BIC or SWIFT code, the name of the bank and the account holder. Please note: This information must match the bank certificate.
• A physical signature by an authorised person, such as a manager with budgetary responsibility or another representative of the partner organisation who is authorised to sign disbursement requests in accordance with the delegation of authority or as a signatory. See below regarding the delegation of authority and signatories.
• Confirmation that the activity is being carried out in accordance with the agreement.
• The signed disbursement request shall be scanned and emailed to the relevant Sida case officer in PDF format.
• See Article 5 ‘Disbursements’ in the agreement ‘Special Conditions’ for further information.

See Annex 6, ‘Disbursement request form’ (not compulsory). See also Annex 7, ‘Checklist disbursement request’, for details of what Sida checks before a disbursement can be made to a partner organisation. The only supporting documents that need to be attached to the first disbursement request are a bank certificate and the delegation of authority/authorised signatories.

Delegation of authority or authorised signatories

The disbursement request must be signed by an authorised person. The delegation of authority or specific documentation confirming the authority to sign the requisition shall be submitted at the time of the first disbursement.

Subsequent disbursement requests

Subsequent disbursements are made on the basis of the financial needs for the coming period. The financial needs refers to the costs for the coming period, minus funds from other sources of funding available to the programme during the same period. The financial needs must be documented together with a simplified financial report for the project/programme and with references to the most recently approved work plan and budget. The simplified financial report shall show the opening balance, payments for the most recent disbursement request period and any unused funds.

Where relevant, the budget for the current year may also be revised and attached to the claim. The revised budget shall include estimated opening and closing balances, as well as a comparison with the most recently approved budget. The changes must be justified. For approval of a budget revision, an updated budget covering the entire contract period shall be submitted.

Usually, the second annual disbursement is conditional upon the annual  narrative report, financial report and audit report having been submitted and approved by Sida, with the exception of the first year of the activity period. Additional agreement conditions may apply, which must be met for Sida to be able to make the disbursement.

See also Annex 7 ‘Checklist disbursement request’.

After disbursement

Once the funds have been received into the partner organisation’s bank account, the amount received and the date on which the funds were received shall be sent to Sida by email.

Special provisions regarding closing balances

The partner organisation must demonstrate a financial needs up to the next disbursement request. The first disbursement request shall cover the period up to the second request. The size of the disbursement requests on different occasions may vary depending on the justification for the financial need. Preliminary balances shall be included when calculating the financial need. If the balances are considered unreasonably high, Sida may decide to pay out a smaller amount for the first request of the year.

[10] Article 5, ‘Payment provision’, in the General Conditions, and Article 5, ‘Disbursements’, in the Specific Conditions, set out the requirements for a payment to be made.

[11] This is done at the time of the first disbursement request in the first year following the signing of the agreement, or whenever necessary if the details change. The payment details in the bank certificate must match the bank details provided in the disbursement request.

In accordance with current regulations, Sida assesses all activities on the basis of a number of key areas, including the environment and climate. For guidance on the mandatory environmental assessment and other matters, see Green Toolbox. Especially Methodological support here:

Green Toolbox

The agreement specifies whether an evaluation of the programme is to be carried out, in which case Sida must approve the terms of reference. This is normally a requirement in agreements involving significant forwarding of funds and where the Sida grant exceeds 5 million kronor per year.

This may, for example, involve a mid-term or final evaluation. The partner organisation may choose to carry out further evaluations as required.

As the evaluation process provides an opportunity for joint learning and reflection, Sida should be given the opportunity, for example, to comment on draft evaluation reports.

Partner organisations that forward funds shall submit an annual list of evaluations carried out within the programme.

For support and guidance, see Methods for monitoring on Sida.se here:

Methods for monitoring

See Sida’s Guidelines on the handling of Currency Exchange Gains and Losses here:

Guidelines on the handling of Currency Exchange Gains and Losses

Exchange rate effects may arise both within the partner organisation (head office, regional offices and country offices) and at the implementing partner. Partner organisations and implementing partners must report these effects. Exchange rate gains or losses must be reported, regardless of the accounting method used, in a manner that allows for audit. If the parties only report changes in revenue (in accordance with the cash accounting principle), the exchange rate change and how it has been handled may be reported in a note to the accounts to enable audit. Please refer to the agreement with Sida regarding Sida’s requirements concerning any exchange rate gains and/or losses that have arisen.

The management of exchange rates entails a financial risk. The partner organisation is encouraged to develop its own procedures and working methods for managing these risks.

See Sida’s guidance on Budget and Financial reporting for project/program support and Budget och Financial reporting for core support here:

Budget and Financial reporting for project/program support

Budget och Financial reporting for core support

Further clarification:

• The financial report must be physically signed by an authorised representative of the partner organisation. Specific reporting requirements are set out in the agreement.
• To enable analysis and comparison, the financial report shall be drawn up in the same format and with the same level of detail as the agreed budget, and shall include any deviations, expressed as amounts or percentages, covering the same period as the narrative report. If the budget has been revised during the agreement period, both the budget most recently approved by Sida and the originally agreed budget shall be presented in separate columns. Costs shall always be reported against the most recently approved budget.
• If the budget and financial report are presented in a currency other than Swedish kronor, the exchange rate shall be clearly specified. The amount received from Sida shall be specified in both the reporting currency and Swedish kronor.
• The financial report shall show the opening balance, closing balance, unspent Sida funds, interest received, exchange rate gains/losses [4], and any unreported funds from implementing partners at the time of reporting. In the final report, it must be clearly stated whether there are any financial reports and audit reports from implementing partners in subsequent stages that are not included in the final report (this applies to those that forward funds).
• The level of detail regarding the presentation of the budget and financial reporting at subsequent levels should be based on the partner organisation’s systems. The partner organisation is responsible for ensuring that budget analysis is carried out across the entire programme and at subsequent levels to ensure cost-effectiveness.
• The own funds of a partner organisation based in a non-ODA country shall, at the end of the agreement period, amount to at least 15 per cent of the total budget [5], or more if so agreed. The annual own funds shall be in accordance with the approved budget for the current year.
• Key ratios as set out in section Key ratios shall be reported annually together with the financial report.

Examples of how budgets and financial reports can be structured can be found in Annex 2.

[4] In accordance with Sida’s guidelines on the treatment of exchange rate gains and losses

[5] Variations may occur over the years

When funds are forwarded from Sida’s partner organisation to implementing partners, Sida requires the following information for its assessment:

• The division of roles and responsibilities between the partner organisation (including any regional and country offices) and its implementing partners, and the partner organisation’s added value in the interventions.
• A general description of the number and type of implementing partners, and how they are selected.

In accordance with the CSO strategy, the forwarding of funds by the partner organisation in more than one contractual stage should, as a rule, be avoided; however, Sida may grant well-justified exceptions. Forwarding of funds from Sida’s partner organisations to implementing  partners counts as one stage. Forwarding of funds in further stages must be assessed by Sida and requires Sida’s approval of an exception. This may apply to:

1. Contributions that reach actors in repressive environments or conflict contexts. However, this is applied restrictively and applies to individual cases. Repression against civil society sometimes necessitates an additional link when direct forwarding is not possible.
2. Contributions that reach smaller, vulnerable and capacity-weak civil society actors, e.g. informal actors and grassroots movements with whom Sida’s partner organisations are sometimes unable to cooperate with directly. Here too, exceptions are applied restrictively.
3. Forwarding of funds between two national organisations belonging to the same international federation or association of organisations.

Informal actors

Support for informal actors [12] cannot be channelled through agreements and therefore does not require an exemption for forwarding of fund in more than one steg. Support may only be provided in the form of payment against receipts and in-kind support, i.e. by making working hours, materials or equipment available. Sida’s regulations do not permit informal actors to receive financial support (other than reimbursement against receipts) as agreements can only be entered into with legal entities.

Sida, the partner organisation and other actors within the strategy may also support informal actors by working to ensure that their voices are heard and that informal actors are represented in forums where they can exert influence.

In some cases, a so-called ‘fiscal host’ [13] is used to manage support for informal actors. When using a fiscal host, it is important that the partner organisation has a formal agreement with the organisation. All of Sida’s agreement requirements shall be imposed on a fiscal host that receives Sida grants. The same reporting and audit requirements apply as for other implementing partners. Any exemptions from the audit requirement are subject to specific approval by Sida.

[12] An informal actor is neither a legal entity nor a natural person; in other words, it cannot enter into agreements, own assets or be brought before a court. However, it often consists of natural persons who, even though they act on behalf of a so-called informal actor, cannot be protected by it in the same way that a legal person can protect its representatives. In legal terms, these natural persons are therefore acting in a personal capacity.

[13] Fiscal hosting is when a legally registered organisation (also known as a fiscal sponsor) manages funds on behalf of a group, social movement or project that is unable or unwilling to register as a formal legal entity.

 

In accordance with current regulations, Sida assesses all its activities on the basis of a number of key areas, including gender equality. For guidance on gender equality and gender mainstreaming, see Sida’s work for Gender Equality, 2020, tool for gender analysis and Sida’s Gender Toolbox here:

Sida’s work for Gender Equality, 2020

Gender Analysis – Principles & Elements

Gender Toolbox

Activities at the intersection of humanitarian aid and long-term development aid may be funded under the CSO strategy.  A significant proportion of the activities funded by the strategy takes place in fragile contexts where there is a high risk of crisis and conflict. It may be justified, within the framework of the strategy, to fund activities aimed at prevention, early recovery and/or capacity development for civil society organisations in humanitarian contexts and crises – that is, activities that strengthen synergies between humanitarian aid, peacebuilding and development cooperation.

It is a key priority for Sida to strengthen the interplay between humanitarian aid, development cooperation and peace efforts (the Humanitarian-Development-Peace (HDP) nexus [6]) in fragile contexts. Development cooperation should contribute proactively to preventing crises and vulnerability, as well as strengthening capacity to manage and recover from such crises.

Funds from the CSO strategy can be used in two ways to promote a nexus approach: (i) as an integral part of the original application to Sida, or (ii) as a reorientation of activities under ongoing agreements through the reallocation of funds already granted, normally due to a sudden crisis or disaster that prompts partners to initiate temporary humanitarian activities.

Sida expects partners to take the following into account in their assessment, both with regard to the possibility of integrating the project into the main application and to the adjustment of ongoing activities:

• Even in humanitarian contexts, activities shall be guided by the four principles of participation, non-discrimination, accountability and transparency, and shall take into account conflict sensitivity (Do No Harm), gender equality, and climate and the environment. See sections PEACE AND CONFLICT, GENDER EQUALITY, ENVIRONEMENT AND CLIMATE and HUMAN RIGHTS.
• Humanitarian aid shall be guided by the humanitarian principles of humanity, impartiality, independence and neutrality, comply with international standards, and form part of humanitarian coordination. The allocation of funds shall be based on the scale and severity of humanitarian needs. Consequently, activities at the intersection with the humanitarian sector may only be funded within the framework of the CSO strategy in the two cases specified below.
• Support shall be coordinated with any other donors.

i. Activities included in the original application

For activities included in the original application, the link to the two target areas of the CSO strategy must be clearly demonstrated. The activities shall therefore primarily aim to strengthen the capacity of civil society organisations in developing countries, and/or create the conditions for civil society actors in developing countries to operate.

The application must not include activities that form part of UN-coordinated Humanitarian Needs and Response Plans (HNRPs). However, applications aimed at increasing resilience and, in the long term, preventing or reducing humanitarian needs among people affected by crises who are also receiving humanitarian aid would be considered, in line with Sida’s HDP-nexus approach. Applications will also be considered for activities targeting crisis-affected geographical areas and target groups that are no longer covered by humanitarian response plans, and where development cooperation plays a key role in preventing a worsening of humanitarian needs and/or is aimed at reconstruction.

Examples of activities that may be included:

• Activities aimed at capacity development and coordination support for local and national organisations, to better meet the needs of affected populations and prepare local and national actors for future humanitarian responses. There are particular opportunities for synergies with the humanitarian strategy in the areas of protection, locally led responses, preventive measures and innovation.
• Activities aimed at long-term disaster and risk preparedness, as well as climate adaptation in vulnerable communities, such as institutional development, early warning systems and the integration of risks into development planning.
• Preventive measures such as strengthening protection, income-generating activities (livelihoods), food security, and basic public services, including education and the dissemination of information relating to the crisis or disaster, with the aim of reducing humanitarian needs.
• To support quality and transparency efforts, Swedish civil society organisations receiving funding under the CSO strategy within the framework of Part Two may apply for up to 80 per cent of their costs for the Humanitarian Quality Assurance Initiative (HQAI) quality certification.
• The application shall clearly set out how the activities complement and strengthen synergies and potential impacts in relation to an HDP-nexus approach.

ii. Reorientation of activities under ongoing agreements

In the event of sudden or escalating crises affecting the operations of Sida’s partner organisations and subsequent implementing partners, as well as the local communities where these operations are carried out, funds allocated under the CSO strategy may be reallocated to meet emerging humanitarian needs. The aim of such reallocation is to ensure that partner organisations and implementing partners can continue to carry out relevant activities for the benefit of people affected by crises where they are already operating, and to safeguard development gains.

The reallocation of funds is expected to involve a temporary reorientation, or to last for as long as the extraordinary situation persists. If an organisation’s activities undergo a more permanent shift towards humanitarian work, funding may be sought from the humanitarian appropriation.

The activities are to be carried out by existing implementing partners of Sida’s partner organisations. The aim is not for organisations to change their geographical focus or target group when a humanitarian crisis arises; rather, organisations are expected to return to a focus on more long-term results as soon as circumstances permit.

Examples of activities that may be included in the case of reorientation:

• Measures aimed at taking early or anticipatory action [7] in response to warning signs that risk developing into a shock or minor crisis in the area where the project operates, by immediately implementing measures that strengthen the capacity to manage the crisis that has arisen. In this way, the project’s development gains can be safeguarded, and the initiative can continue and achieve its objective.
• Activities that can be rapidly adapted or scaled up to address urgent needs during a crisis, for example through temporary cash transfers and/or emergency supplies other than food, temporary adjustments to any ongoing income-generating activities and the safeguarding of food security, the integration of protection into the response, the extension of social protection, or targeted risk-reduction measures.

In the case of temporary humanitarian activities, it is important that partner organisations demonstrate accountability to affected populations and promote local ownership [8], as well as coordinating with other humanitarian actors within the framework of established structures.

Sida’s partner organisations must ensure that the activities being adapted fall within the scope of the CSO strategy, based on these guidelines. In cases of doubt, partner organisations are encouraged to consult Sida. In the case of temporary humanitarian activities, Sida will assess retrospectively whether the adaptation complies with the guidelines.

Information regarding the reallocation of funds must be submitted to Sida in connection with the reorientation. The information shall be concise and include the following:

• the estimated amount planned for reallocation
• the country/region where the activities are to be carried out and by which implementing partner(s)
• a general description of the activities and a brief risk analysis
• a brief account of how the support is to be phased out

A brief report on activities being reallocated shall be included in the organisation’s regular narrative report to Sida. No adjustments are required to the annual financial report and the audit report submitted to Sida; these shall be prepared in accordance with the agreement and the approved budget. The total outcome of the entire budget agreed with Sida, including the amount that has been reallocated to the restructured operations, must be submitted to Sida.

[6] For further information on the HDP nexus and examples of the types of activities that Sida considers to form part of an HDP nexus approach, see Sidas HDP-nexus guidance notes here:

Sidas HDP-nexus guidance notes

[7] For more information, see Sida’s Humanitarian Brief: Anticipatory Action here:

Humanitarian Brief: Anticipatory Action

[8] Se guideline Locally-led Humanitarian Action here:

Locally-led Humanitarian Action

In accordance with current regulations, Sida assesses all its activities on the basis of a number of key areas, including human rights. For guidance, see Human Rights Based Approach here:

Human Rights Based Approach

Sida is a government agency. All communications sent to, or created and stored by, a government agency become public documents under the Freedom of the Press Act (1949:105). As Sida is required by law to retain public documents, these may only be deleted in specific circumstances. Even information received verbally may need to be recorded and stored.

Information security is important for protecting operations, assets and individuals from harm. This applies in particular to cooperation with partners in repressive contexts. Where necessary, Sida’s partner organisations may anonymise documents such as partner lists and reports of corruption and other irregularities, or remove other sensitive information before submitting them to Sida. If sensitive information needs to be communicated to Sida, an appropriate method may be chosen based on the sensitivity of the information, following consultation with the relevant contact person at Sida. In many of these cases, digital communication takes place via SecureAppbox or Signal, but physical meetings may sometimes be necessary. If you are unsure how information should be communicated to Sida, please contact the responsible programme officer. Never communicate sensitive information via standard email or ordinary telephone calls.

Always aim to minimise the amount of personal data communicated to Sida. Report only information that is relevant to the purpose. Read more about Sida’s Privacy Notice here:

Sida’s Privacy Notice 

The principle of public access to official documents means that everyone has the right to access official documents. This means that if someone asks Sida to see an official document, the agency may disclose it. First, a confidentiality assessment is carried out in accordance with the Public Access to Information and Secrecy Act (2009:400). Sida can never guarantee confidentiality in advance, regardless of how the information is communicated to the agency. A confidentiality assessment is carried out by Sida each time a document is requested (not when documents are submitted to Sida). The disclosure of public documents must always take place without delay. Where necessary, Sida may request facts from a partner organisation to support its confidentiality assessment, but this should not delay the disclosure process. Even if Sida decides that certain information is to be kept confidential, that information may still need to be disclosed at a later date, as Sida’s decision on confidentiality may be appealed and ultimately decided in court.

A legal basis is always required for Sida to be able to claim confidentiality. Examples of confidentiality provisions applied in Sida’s operations include:

• Secrecy in foreign affairs (15:1, Public Access to Information and Secrecy Act).
• Security of aliens in certain cases (21:5, Public Access to Information and Secrecy Act) [9].
• Investigative secrecy (18:3, Public Access to Information and Secrecy Act).
• Business and operating conditions in international development cooperation (31:24, Public Access to Information and Secrecy Act).

[9]Under Chapter 21, Section 5, information relating to a foreign national is subject to confidentiality if it can be assumed that disclosure of the information would entail a risk of a person being subjected to abuse or suffering other serious harm arising from the relationship between the foreign national and a foreign state, authority or organisation of foreign nationals.

Sida requires all partner organisations to publish open data on Sida-funded programmes in accordance with the standard set by the International Aid Transparency Initiative (IATI).

Partner organisation are expected to follow the general guidance on IATI reporting, which is available at sida.se; Openaid – transparent development cooperation. It describes the purpose of IATI, the structure of the data standard and Sida’s expectations regarding publication frequency and data quality. For more detailed information, see IATI guidelines for partners. For more information on IATI, visit the IATI-official site here:

Openaid – transparent development cooperation

Reporting is carried out in accordance with the agreement. In this guide, Requirements for narrative reporting, you can read about Sida’s minimum requirements for narrative reporting. Read the guide here:

Requirements for narrative reporting

For certain partner organisations simplified narrative reporting applies. Where this is the case, it is specified in the agreement. A simplified narrative report consists of a concise summary of the implementation of the operations, presented in the form of an updated results matrix or an updated results plan.

The CSO Strategy states that Sida is to develop guidelines for results monitoring. This work is ongoing, and this section will be updated later in 2026 to clarify how results reporting from contributions will contribute to Sida’s reporting on the strategy’s objectives and in accordance with Sida’s revised results model.

Under the CSO strategy, funds may be used to finance Swedish partners’ own contribution when funding is sought within the framework of EU development aid or from other development donors. The aim is to strengthen Swedish organisations’ capacity to diversify their funding.

This option has existed previously, but previously applied only to the funding of own contributions for EU-funded projects. Other development finance institutions are now also included. ‘Other development donors’ refers to government bodies that provide official development assistance to ODA eligible countries or multilateral institutions that provide financial support to promote development in developing countries, hereinafter referred to as ‘donors’.

ODA eligible countries

The term ‘own contribution’ in this text refers to the funds that partner organisations themselves are required to contribute to projects for which funding has been sought from the EU or other donors. The own contribution forms part of these projects. This should not be confused with the term ‘Own funds’, which refers to the 15 per cent that Sida’s partner organisation is required to contribute under agreements with Sida.

Handling of these funds:

• A condition for the CSO budget line to fund this is that the projects are in line with the CSO strategy and contribute to the overall objectives of the partner organisation’s programme.
• Own contribution to projects funded by the EU or other donors (hereinafter referred to as ”Own contribution”) shall be incorporated into the partner organisation’s existing agreement with Sida by specifying a separate budget line for this purpose. All Own contribution shall be included in this budget line. There is no upper or lower limit on the size of Own contribution. If the specific budget item needs to be amended, the existing contractual terms for budget amendments under Sida’s agreements shall apply. This must be approved by Sida.
• A requirement for own funds of 15 per cent of these funds applies, in accordance with the existing terms of the agreement between Sida and the partner organisation.
• The annual narrative report must include specific reporting in the form of a list of the projects that have been included in the budget item for Own contribution. The list shall specify the following: project name, amount, project period, donor name and, where applicable, the date of the donor’s approval of the final report and any repayment.
• Annual reporting on project outcomes is carried out in the same way as for outcomes relating to other activities within the programme. These funds are also included in regular financial reporting and auditing.
• The partner organisation is responsible for ensuring that reporting to donors takes place in accordance with the agreement with the relevant donor.
• The partner organisation’s Own contribution is included in its final report to Sida under the existing agreement within the CSO appropriation. If the projects continue after the activity period of the agreement between Sida and the partner organisation has expired, the final report should include a report on the partner organisation’s Own contribution up to the end of the activity period. In such cases, the final report to Sida shall state that the projects are continuing but that Sida’s funds have been exhausted.
• An agreement condition is introduced regarding reporting and the repayment of funds. If the partner organisation’s agreement with Sida comes to an end, no further funds may be obtained from the CSO appropriation for the remainder of the project under the existing agreement. If a new agreement is concluded with Sida, the project may be included in the new agreement for the remainder of the project.
• An audit point is included in the terms of reference for the annual audit, whereby the auditor is tasked with reviewing and confirming that the partner organisation complies with the agreement with the donor regarding reporting and the completion of the project.
• Suspected cases of corruption and other irregularities shall be handled in the same way as for the entire Sida agreement. The difference is that the EU normally monitors the handling of these cases, and Sida need only be kept informed and, where necessary, make claims for reimbursement. For other donors, it should be clarified who is responsible for the investigation. This means that cases linked to Own contribution shall also be included in the annual summary submitted to Sida.

 

In accordance with current regulations, Sida assesses all its activities on the basis of a number of key areas, including peace and conflict. For guidance, see Sida’s toolbox for Peace and conflict here:

Toolbox for Peace and conflict

The agreement specifies which procurement rules apply. If the partner organisation’s procurement rules are deemed to be in line with Sida’s procurement guidelines, they may be approved.

For partner organisations that forward funds, Sida may also approve the use of implementing partners’ procurement rules, provided that the partner organisation has assessed that they are in line with Sida’s procurement rules. Otherwise, the partner organisation’s or Sida’s procurement rules shall be used. The agreement sets out the applicable rules.

To facilitate assessment at subsequent stages, there is a checklist (see  Annex 8) covering the most important points to consider. However, it is the responsibility of the partner organisation to carry out a comprehensive assessment by comparing the implementing partner’s rules with Sida’s rules.

The partner organisation and the implementing organisations may conduct procurement in languages other than Swedish and English if this has been agreed. This shall be specified in a separate clause in the agreement.

This section on anti-democratic activities will be updated once Sida has produced guidance for partner organisations found on Sida’s website.

 

 

Sida does not prescribe any specific model or method for result-based management. Objectives and expected outcomes must be measurable, but this can be achieved in various ways. See Apply for financial support from Sida here:

Apply for financial support from Sida

 

Organisations receiving support through the CSO strategy may seek coordination and collaboration with activities funded by other strategies, with a aim to achieve synergies and enabling the funding of initiatives that fall within the overlap between two strategies. This is particularly relevant in relation to humanitarian aid (see HUMANITARIAN CONTEXT).

Organisations receiving support through other thematic or geographical strategies shall, as far as possible, describe in their activity reports to Sida how synergies are utilised in their activities in relation to funding from the CSO strategy.

When communicating about the activity, the partner shall state that it has been (partly or wholly) funded by Swedish development aid. This also applies to implementing partners.

The Sweden logo for promotional purposes shall be used in general communications and in communications aimed at recipients in the country where the project/activity is being carried out.

The Sida logo must only be used if you are targeting a Swedish audience.

The Sida logo or the Sweden logo for promotional purposes shall not be used in such a way that it could be perceived that Sida or Sweden has been involved in the production of the material or endorses any views presented therein.

Please see the relevant websites for further information:

Logo and other brand marks – Sharing Sweden

Riktlinjer för Sida-logotyp:

The partner organisations shall submit work plans in accordance with the conditions of the Specific Conditions. It shall be directly linked to the Project Document/Application and contain details of planned activities and objectives, as well as a timetable for the forthcoming reporting period.

For partners who forward funds to multiple organisations, the work plan should be at a general level and include activities at an aggregated level. See here for further information:

Sida’s Guidelines for work plan and budget