Non-governmental organisations (NGOs) are important partners for DFID in ensuring that UKAid reaches intended recipients, particularly the most marginalised groups. Approximately 10% of UKAid in 2018 was channelled directly through NGO partners.
DFID’s approach to programme delivery ensures this funding is well targeted. A Business Case must set out why the programme represents value for money and how this will be measured. Before funds are dispersed, a due diligence assessment is conducted to ensure the NGO partner has the capacity to deliver. Each programme is then monitored throughout its life, with formal annual reviews ensuring that progress and value for money are sustained and that any management fees remain appropriate.
On 1 April this year, DFID published a new approach to cost transparency in NGO grants. A new budget template and guidance will ensure that DFID has full sight of, and is able to scrutinise, all costs being paid to CSO partners through grants and standardises our approach to paying overheads. However, the exact information requested on administration costs is not held centrally and could only be collated at disproportionate cost.