Tom Van Cakenberghe for Mercy Corps

THE CASH TRANSFER

IMPLEMENTATION GUIDE
Part of the Cash Transfer
Programming Toolkit
MAY 2017
Contents
Acronyms 4

Terminology 4

Cash Transfer Programs (General) 6

How to Use This Guide 9

Activity A: Laying the Foundation 11

Document Standard Operating Procedures (SOPs) 11

Clarify the Roles and Responsibilities of Local Partners 12

Clarify the Roles and Responsibilities of Service Providers 12

Establish Community Accountability and Reporting Mechanisms (CARMs) 13

Coordinate with Peer Agencies 13

Coordinate and Communicate with Other Key Stakeholders 14

Establish an M&E and Quality Assurance Plan 15

Activity A Checklist 17

Activity B: Identifying and Registering Program Participants 18

Identify Program Participants 18

Register Program Participants 18

M&E: Verification of Program Participants and Baseline Study 21

Activity B Checklist 22

Activity C: Determing the Transfer Type, Amount, Frequency, and Disbursement

Mechanism/Provider 23

Determine the Transfer Type 23

Determine the Transfer Amount 25

Determine the Transfer Frequency 26

Determine the Disbursement Mechanism 27

Select Your Service Provider 32

Contract with Your Service Provider 36

M&E: Baseline Market Price Survey 37

Activity C Checklist 38

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 2
Activity D: Communication and Training  39

Communicate General Program Information 39

Additional Training Topics for E-Transfer Programs 40

Activity D Checklist 42

Activity E: Distribution (Cash Disbursement) 43

Complete Your Distribution Plan 44

Manage Distributions 46

The Overall Distribution Process  46

Additional Distribution Considerations 48

Physical Cash/Check Distributions by a Service Provider 49

E-transfers 50

Direct Distribution of Physical Cash by Mercy Corps 51

M&E: Process Monitoring and Quality Assurance and Post-distribution Monitoring (PDM) 52

Activity E Checklist 54

Activity F: End-of-Program Transitions 55

Communications Plan 55

Lessons Learned 55

Prequalified Supplier Feedback 56

Final Check on Documentation and Archiving 56

M&E: Final Evaluation 56

Activity F Checklist 57

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 3
Acronyms
CaLP: The Cash Learning Partnership

CARMs: Community Accountability and Reporting Mechanisms

CCT: Conditional Cash Transfer

CTP: Cash Transfer Programming

DFID: Department for International Development (U.K.)

ELAN: Electronic Cash Transfer Learning Action Network

MCDL: Mercy Corps Digital Library

MERG: Markets, Economic Recovery and Growth Team

MEL: Monitoring, Evaluation and Learning Team

PALM: Procurement, Administration and Logistics Management Team

POS: Point of Sale

RFB: Request for Bids

RFP: Request for Proposal

SLA: Service Level Agreement

SOPs: Standard Operating Procedures

UCT: Unconditional Cash Transfer

MPG/MPT: Multi-purpose Cash Grant, Multi-purpose Cash Transfer

MPCA: Multi-purpose Cash Assistance

Terminology
Condition: A limiting or modifying circumstance. Conditions are used within conditional cash transfer programs
(CCTs): Program participants must fulfill designated requirements before they receive money. However, once
they receive that money, they are free to spend it as they wish. Note that conditions are not ways in which
implementing agencies can restrict what program participants purchase. (See “restriction” below.)

Conditional cash transfer (CCT): A CTP program type where a program participant must complete a
condition­­—usually by demonstrating a behavior (such as keeping a child enrolled in school)­­—to receive a cash
transfer. CCTs do not restrict what people may purchase.

Restriction: Something that restricts, a limitation or regulation. Within CTP, restrictions are used to influence what
beneficiaries purchase or to prevent them from purchasing certain goods, typically alcohol, tobacco products,
and other “anti-social” items. A restriction is not a “condition” for receiving a transfer; instead, it applies after the
transfer has been made.

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Minimum Expenditure Basket (MEB): What a household requires to meet basic needs­­—on a regular or
seasonal basis­­—and its average cost over time. “Basic needs” are defined by affected households themselves,
International Humanitarian Law, and Sphere Standards.

The MEB is a critical component in setting the cash transfer value. Although primarily focused on recurring monthly
expenditures, MEBs often also account for specific seasonal or recovery needs.1

Survival Minimum Expenditure Basket (SMEB): Where the MEB is defined as, “the amount required to
meet basic needs,” the SMEB is the expression of the minimum cost of living needed for physical survival and
implies the deprivation of a series of rights. Increasingly in humanitarian settings, agencies are starting to set
transfer values based upon the SMEB.

Multi-purpose grant (MPG): Synonymous with “unconditional cash transfer;” a commonly-used term that
describes a cash transfer to a household to cover, fully or partially, a set of basic and/or recovery needs.
Alongside multi-purpose grant, you may also hear a cash transfer referred to as a multi-purpose transfer
(MPT) or multi-purpose cash assistance (MPCA).

Service provider: A third party entity contracted to perform a function supporting the implementation of a
cash transfer program (typically data management and/or payment distribution services). Service providers may
include e-voucher or e-cash companies; formal financial institutions (such as banks); informal money transfer
agents (such as hawalas); and mobile network operators (MNOs).

Unconditional cash transfer (UCT): A type of CTP program whereby money is transferred to a program
participant simply by that person qualifying to participate in the program. (This is in contrast to CCTs, where
program participants are required to “do something” to receive a transfer.) Like CCTs, however, once participants
receive their money, they are free to spend it as they see fit.

1 CaLP Glossary, [Link]

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Cash Transfer Programs (General)
Cash transfers2 are direct payments of money to a recipient. They may be paid directly by Mercy Corps or by a
third party intermediary, such as a bank. Cash transfers come in two forms: unconditional, meaning the recipient
receives cash simply by qualifying as a program participant within the program’s scope, or conditional,
meaning the recipient must do something to receive the cash.

Unconditional cash transfers (UCTs) are given to recipients without any requirements. While agencies typically
have an idea of how the transfer will be spent (based upon needs assessment, etc.), UCTs allow program
participants to choose exactly which purchases are most critical to them, and where and when they want to spend
their money. The frequency of payment and/or the size of the cash transfer may influence how participants spend
their money. One-time, large payments are often used to invest in livelihoods; whereas multiple, smaller payments
are often used to cover basic household needs like food, medicine, and clothing. (See the Text Box “Does
Payment Frequency Influence How Cash Is Spent?” for more information.)

UCTs are Mercy Corps’ preferred cash transfer type. They offer flexibility and ease for program
participants; they are also the most straightforward implementation methodology for Mercy Corps.

PROGRAM PROFILE

UCTs: Meeting the Needs of Refugees in Europe

Four years of civil war in Syria­­—as well as conflict and the on-going deterioration of economic
opportunities in countries such as Iraq, Afghanistan, Pakistan, and South Sudan­­—created a humanitarian
crisis in Europe. By October 2015, over 600,000 refugees had arrived in Europe in that year alone,
the majority sailing on makeshift rafts and
boats to enter Greece from Turkey. Refugees
arrived with almost no belongings, to begin
their arduous travel through the continent in
search of opportunity. To assist them as they
traveled, Mercy Corps provided critical migration
information to refugees as well as money to
address basic needs during their journey through
Greece. Refugees were given pre-paid debit
cards worth €90 for individuals or €250 for
families. Recipients could use the cards to pay
for goods in shops or to withdraw cash directly
from ATMs. Cash transfers were the only type of
assistance flexible enough to meet the needs of
Corinna Robbins/Mercy Corps this mobile, highly-diverse population.

2 Mercy Corps has adopted the term “cash transfer” to align our terminology with US government rules and regulations. “Transfers” are given to individuals, and “grants”
are given to institutions or groups for public purpose. You may see this type of programming referred to as “cash grants” by other organizations and donors.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 6
Increasingly, many agencies and donors are referring to UCTs as “multipurpose grants” (MPGs), “multipurpose
transfers” (MPTs), or “multipurpose cash assistance” (MPCA), because the transfers are often used to cover
a wide range of needs (i.e., food, shelter, NFIs, WASH services, etc.).3 UCTs, MPGs, MPTs, and MPCA are
synonyms for our intents and purposes.

Conditional cash transfers (CCTs) are typically

used to promote a certain type of behavior
or to encourage an event (e.g., they may be Does Payment Frequency Influence
tied to school attendance or to rebuilding a How Cash is Spent?
home destroyed in an earthquake.) Program
participants must complete certain tasks­­ In November 2013, Typhoon Haiyan­­—the
—“conditions”­­—to receive the money. Once strongest ever recorded storm to make landfall­­—
participants have met these conditions, they hit the Philippines, leaving over 6,000 people
are free to spend their money in any way they dead and displacing more than 4.1 million.
choose. Cash for work (CFW) programs are In January 2014, Mercy Corps launched
a type of conditional cash transfer program. TabangKO, a cash transfer program to help those
impacted meet immediate, post-disaster needs
Often, CCTs will be given in tranches to mark and reestablish livelihoods. All participating
progress toward the ultimate goal. Because the households received the same total amount,
conditions always need to be verified by the
but the transfer frequency varied. Research
implementing agency, CCTs may also create
conducted by the team in May 2015 revealed
additional burdens for program participants (in time)
that households who received a single, lump sum
and for the implementing agency (in time and costs).
cash payment­­—versus those who received three
As such, CCTs should be used with clear justification
smaller, monthly payments­­—were more likely
(e.g., cash for work programs which are clearly
to own productive assets by the program’s end,
linked to needed infrastructure rehabilitation). It is
not recommended to use CCTs in the immediate increasing their resilience to future shocks.4
aftermath of a crisis, when people need quick access
to food, temporary shelter, and other basic needs.

Also note that once cash is transferred to program participants, there is no mechanism to control how that money
is spent by program participants. Although conditions (and CCT programs) can encourage certain behavior or
investments pre-transfer, they are generally not an effective way to influence or control participants’ spending. If
your objective is to control or restrict what participants can purchase (i.e., seeds or building materials), a voucher
program may be more suitable to your overall objective. For additional information, see the text box “What if I
Want to Restrict How Participants Spend their Cash?” in Activity C.) 4

3 This trend is partly due to different/distinct UN Agency mandates, with new terms such as “MPG” indicating that there is no specific sectoral focus associated with the transfer
(in contrast to transfers for shelter needs from UNHCR or food needs from WFP, for example.)
4 Beyond Meeting Immediate Needs: The Impact of Electronic Cash Transfer Approaches on Disaster Recovery and Financial Inclusion, Mercy Corps Digital Library,
[Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 7
PROGRAM PROFILE

CCTs: Traders Stock Up to Rebuild Markets in South Sudan

Conflict, raiding, and the burning of agricultural land from 2013-14 left many in South Sudan’s Unity
State acutely malnourished. Households had resorted to the most extreme coping mechanisms to
survive: foraging for wild food, eating next year’s seeds, and drinking cattle blood. Food aid programs
are particularly expensive to run in a country with almost no roads. And air drops of food from WFP
appeared to make little difference. As people’s purchasing power shrunk and traders themselves suffered
violence and looting, markets deteriorated, compounding the devastation.

Mercy Corps South Sudan advocated for the

use of UCTs and CCTs to improve food security
outcomes. In a program funded by DFID,
traders were provided CCTs in tranches to
stock specific staple items to help food-insecure
households access a more diverse and nutritious
diet. (Later tranches were linked to performance
and use at earlier stages.) At the same time,
households were given UCTs to meet their
urgent needs, with the overwhelming majority
of households (96%) purchasing food, while
38% also purchased non-food items, and 32%
bought health-related services.
Lindsay Hamsik/Mercy Corps

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How to Use this Guide
The Cash Transfer Implementation Guide is written for Program Managers actively managing cash transfer
programs. If you are reading this Implementation Guide, we assume you are familiar with the preconditions for
CTP and the advantages and disadvantages of cash transfer programs. If you are not, please read the Cash
Transfer Programming Methodology Guide5 as well. It lays out the rationale and best practice for all CTP types,
including cash transfers. It also covers basic program identification and design issues. Im

TIP If you are considering distributing cash transfers electronically (i.e., using e-transfers),
please use the Cash Transfer Implementation Guide in partnership with the E-transfer
Implementation Guide.6

Cash transfer programs­­—like all program types­­—rely on good program management 7 and successful
partnerships between multiple teams, including Finance and Operations. All procedures, tools, and templates
outlined in this Implementation Guide were endorsed and/or created by the International Finance Team and the
Procurement Administration and Logistics Management (PALM) Team. As such, all teams involved in designing
and implementing a cash transfer program should use this Guide as their reference document.

PROGRAM MANAGEMENT MANUAL

Implementation Guide Structure

The Cash Transfer Implementation Guide is divided by relevant activity. Activities are lettered (A-F) and presented
in a logical order, but not necessarily a chronological one. Depending upon your particular context, you may
choose to start with a different activity or run various activities simultaneously. Below, we provide a process
diagram to demonstrate how these activities may be linked together in a program. Please use this and the
Example Workplan (Annex 1) as general guidance and adjust as appropriate.

5 The Cash Transfer Methodology Guide, Mercy Corps Digital Library (MCDL), [Link]
6 The E-transfer Implementation Guide, MCDL, [Link]
7 For additional information about Program Management at Mercy Corps (PM@MC), visit: [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 9
Implementation Guide Tools
Tools and templates relevant to each activity are referenced within that section and collected in a final checklist
at the end of each activity. Each tool and template contains instructions about how/when to use the tool; who
is responsible for completing it; and where it should be filed. Annex 2 is a compilation of all the checklists in an
easy-to-print format.

Please remember that good cash transfer program management is simply good program management. In that
respect, any tools provided here should be used in partnership with documents required by Mercy Corps’
Program Management Manual.8 Program Managers are also expected to understand the overarching Finance
and Operations policies and procedures.

Senior HQ Finance and Operations team members have drafted specific guidance for Finance and Operations
Teams in Annex 18 and Annex 19, respectively.

Rather than create a separate activity devoted exclusively to monitoring and evaluation (M&E), we have
integrated relevant M&E activities into each activity. (For example, Activity C: Determining the Transfer Type
includes a section on conducting a baseline study to establish market prices as well as a link to a Market Price
Survey template.)

Process Diagram and Workplan

Program activities are not linear. They may be carried out before, after, or in partnership with other activities. It is
difficult to capture this in a two dimensional document. We have tried to do so by breaking activities into discrete
sections and providing a process diagram to show an example path you could take to piece them together.

The Example Workplan (Annex 1) also demonstrates the ways in which program activities may be carried out
simultaneously within your program timeline.

B Identifying and
Registering Program E Distribution
Participants (& Monitoring)
A Laying the C Determining Transfer D Communication For CCT F Program
Foundation Type, Amount, Frequency, and Training Closeout
programs; verify
and Disbursement condition met
Mechanism/Provider

8 Program Management Manual, MCDL, [Link]

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 Sean Sheridan for Mercy Corps

ACTIVITY A
Laying the Foundation
The initial tasks listed below are critical to the success of your cash transfer program and are an essential part of
your set-up process.

Document Standard Operating Procedures (SOPs)

It is highly recommended to document standard operating procedures (SOPs) when implementing a cash transfer
program. SOPs may cover an entire program—if the program is small—or only the steps of a program that require
additional clarity.

To create buy-in, draft SOPs in partnership with all teams that will play a role in the program. This may happen
during a formal Kick-off Meeting, once your program has been funded, or shared during that event. Sample
SOPs can be found in Annex 3 of this Guide and in Annex 9 of the E-transfer Implementation Guide.9

Processes typically outlined in SOPs include:

AA Communication and feedback plan
AA Market price monitoring plan/procedures
AA Data management plan
AA Payment distribution process (including the role of service providers and the internal review and approval
processes needed to effect payments)
AA Any additional information that teams feel should be clarified, including internal roles and responsibilities

9 E-transfer Implementation Guide, MCDL, [Link]

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Clarify the Roles and Responsibilities of Local Partners
If you are partnering with another organization to implement your cash transfer program, you will need to clarify
the roles and responsibilities of Mercy Corps and the partner. Typically, these are outlined in the partner’s signed
sub-award or service contract. Some program activities that may be especially important to clarify are:

AA Participant selection and verification

AA Payment schedules and documentation

AA Data management and sharing protocols10

AA M&E activities (including Community Accountability and Reporting Mechanisms)

AA Policies and codes of conducts to address safeguarding children and the prevention of corruption,
exploitation, discrimination, and abuse

AA External communications, particularly if working in a sensitive area

Clarify the Roles and

Take Caution with Low-capacity
Responsibilities of Service Providers
Service Providers
Mercy Corps often contracts external service
providers to help facilitate cash payments. When Mercy Corps often partners with service
service providers lack prior experience working with providers­­—such as mobile network operators
an NGO or supporting a cash transfer program, (MNOs), data management companies, or
some degree of orientation may be required to financial service providers­­—to assist with e-transfer
achieve successful service delivery. Typically, a programs. To date, we have found that managing
Service Level Agreement (SLA)11 is signed alongside service providers with low capacity has been
a service contract. Program activities that may be one of the most time-consuming and problematic
especially important to clarify are: aspects of implementation.

AA Payment schedules and documentation Investing time at the outset to understand your
requirements partner’s capacity and clearly define roles,
AA New client account registration responsibilities, and expectations has been an
effective way to minimize the challenges likely to
AA Data management and data sharing protocols cause unexpected delays. During work planning,
consider factoring in extra staff time to adequately
AA Reporting activities, including formats,
support lower capacity service providers. See
schedules, and expectations
Activity C for more information, as well as
AA Level of ongoing technical support the Electronic Cash Transfer Learning Action
Contracting Guide12 Network’s (ELAN’s) “Mobile Money Assessment
and Contracting Guide.”12

10 For an online set of tools and graphics to help integrate good data management into your program, refer to the ELAN’s Data Starter Kit for Humanitarian Field Staff,
[Link]
11 SLAs are covered in more detail in Activity C: Selecting Your Service Provider.
12 Reeve, Greg, for the ELAN, Mobile Money Assessment and Contracting Guide, MCDL, [Link]

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Establish Community Accountability and Reporting Mechanisms (CARMSs)
Establishing mechanisms for sharing feedback and complaints is an essential component of managing and
adapting any type of program. It can also bring to light issues lost in routine program monitoring. CARMs
should be established as a first step of implementation to allow community members to provide feedback and
raise concerns about all program activities. General guidance for establishing CARMs is provided in the CTP
Methodology Guide.13 Mercy Corps’ agency guidance for establishing CARMs can be found in Annex 4.14

CARMs are particularly useful if you are transferring cash through an electronic transfer system, as they provide
an additional additional channel to capture feedback and/or troubleshoot transfers. They also generate data
that provides additional insights into a service provider’s treatment of program participants and service delivery
expectations (e.g., number of days until new accounts are open, wait times, etc.)

Coordinate with Peer Agencies

Coordination with peer agencies is an essential component of CTP implementation. It is particularly important
when selecting target areas and program participants (to ensure all affected areas are covered); when setting
the value of a cash transfer; in price monitoring (to share costs and increase range); and in procuring a payment
delivery mechanism (since coordination can provide a better bargaining platform with service providers and
ensure service providers can meet all demands.)

Oftentimes, Mercy Corps is one of a number of agencies implementing CTP in a particular country. Coordinating
with other agencies to select target areas and program participants helps avoid duplication, so aid can be more
effectively utilized. If, for example, three agencies are providing cash transfers in the same target area, there may
be little value in Mercy Corps transferring cash in that same area.

Coordination is also critical in setting the cash transfer amount, and an effective platform for this is the local
Cash Working Group (if present), a coordination mechanism that usually accompanies the UN Cluster system.
Coordinating cash transfer amounts does not necessarily mean that Mercy Corps must provide the exact amount
of assistance as others, but increasingly that is required by donors.15 If we do deviate from set transfer amounts
for programmatic reasons, we must be aware of the various transfer amounts agencies are using and be ready
to explain and justify to participants and donors why they differ. (Despite this, it can be considered bad form
to deviate from agreed-upon transfer amounts and, occasionally, government officials will step in to mandate
previously agreed-upon transfer values.)

Price monitoring16 can also be more effective when undertaken in coordination with others, since agencies
can pool resources and cover more markets consistently. Coordination can also allow agencies to cover more
secondary information on markets/prices and supply chains, provided by groups such as the Famine Early
Warning Systems Network, National Statistics Bureau, WFP, and/or the Cash Working Group or Clusters.

13 [Link]
14 Staff misconduct can have a detrimental effect on cash-based interventions and impede trust in Mercy Corps. CARMs should include a fast-lane and confidential mechanism
to allow complaints about staff abuse or neglect to be quickly investigated by Mercy Corps leadership.
15 A note of caution: Flexibility in transfer amounts is rarely possible when multipurpose cash (MPCA/MPGs) is included in a country or regional Humanitarian Response Plan
(or some other agreed-upon appeal document.) In these scenarios, a standard transfer amount is often included as part of the proposal or recommended programming, and
we are expected to implement programs in alignment with that transfer amount.
16 More details on price monitoring, as well as specific price monitoring tools, can be found in the M&E section of Activity C.

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Coordinate and Communicate with Other Key Stakeholders
Cash transfer programs may require more coordination efforts than in-kind assistance programs. Partly, this is
because misconceptions about cash play out locally—assumptions that cash is “more desirable,” that it may lead
to anti-social behavior, or that recipients will spend it “poorly.” To make sure any concerns are addressed, it is
best practice to engage key stakeholders early, including in local government. Determine who you should contact
and how you should engage them.17

Overall, we strive for transparent and well-communicated programs. Keep in mind, however, that in certain
contexts, communicating too much about when we may be moving large amounts of cash­­—or when vulnerable
individuals may be receiving it—can be a security risk. Always balance concerns specific to your context with the
general, “rule of thumb” guidance provided here.

Local Government Authorities

Always explain the proposed cash transfer program to key figures in the local community who coordinate,
support, or approve humanitarian aid and recovery programs. This may be an official government position or
an informal community elder role. Ideally, it is good practice to have a letter of support or some other kind of
endorsement from local authorities no matter what your program type; this takes on added significance with cash
transfer programs. Since getting approval for cash transfer programs may take additional time, we recommend
you start these conversations early (if possible, during the proposal development phase).

Local Business Owners

Inform local business owners­­—through a Chamber of Commerce, local Business Association, or informal business
network—about your program. Let them know you plan to distribute cash, how much you will be distributing, and
when distributions will start. Sharing this information serves two purposes. First, it can increase goodwill towards
your program, since an influx of cash into the community will increase demand for goods and services. Secondly,
it gives business owners an opportunity to prepare (by stocking up or resupplying quickly.) Depending on security
concerns in the area, you may want to balance the benefit of warning traders about increases in demand with the
need to keep your distributions as safe as possible. You may also want to talk with them about the importance of
not taking advantage of this opportunity by inflating prices.

Selected Communities
Following a disaster, some cash transfer programs provide blanket distributions of cash (e.g., cash is provided to
everyone in a select geographic area). More often, however, we provide cash transfers to a select, or “targeted,”
group of people. Because cash is useful to everyone (its very benefit!), we have a responsibility to clearly
communicate to selected communities who will be receiving cash and why. Clear communication should be
on-going, accessible (visible signage, repeated verbal communication, open door policy, etc.), and updated
as a situation evolves.

17 Annex 1: Stakeholder Register Template, Program Management Manual, MCDL, [Link]

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 TIP You may need to balance the desire to engage the community in the selection
process and the benefits of transparency with limiting community knowledge of the
details on how you select participants. If you make selection criteria too obvious,
certain individuals may attempt to “game” the selection process by appearing to be
more vulnerable than they actually are.

Unfortunately, there is no magic bullet for dealing with communities or individuals who feel excluded from
receiving aid. Yet, the more people feel engaged in the selection process—inputting into selection criteria or
gaining a clear understanding of the selection rationale—the more likely they are to accept its outcome. For
additional information on program participant selection, see “Geographic and Program Participant Identification”
in the CTP Methodology Guide.18

Establish an M&E and Quality Assurance Plan

Mercy Corps’ Program Management Manual (PMM)19 provides general guidance on monitoring, evaluation,
and quality control and assurance. All programs should establish an overall M&E plan, based upon the
information provided in the program’s logical framework and proposal. The M&E plan is the key planning tool for
project M&E efforts, providing details such as what will be collected, from whom, how often, etc.

To meet a program’s key M&E requirements, the following M&E activities are typical in a cash transfer program:

AA Baseline study

AA Baseline market price survey

AA Regular market price monitoring

AA Cash transfer distribution monitoring

AA Post-distribution monitoring (PDM) (with both program participants and service providers)

AA Endline and final evaluation

Mercy Corps also requires teams to create a description of deliverables for each program activity.
A “description of deliverables” refers to a set of documents which describe the quality specifications of an
activity. Information gathered through monitoring and evaluation should be analyzed regulary to adapt the
program as needed.

Monitoring for program quality and accountability may focus on:

AA Whether the program met participants’ needs

AA Participants’ satisfaction with the transfer mechanism and process

AA Wait times, travel times, and expenses associated with obtaining the transfer

18 [Link]
19 [Link]

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 AA Protection concerns raised by the distribution mechanism or process (i.e., whether the participants
felt safe at the distribution site or were comfortable with the distribution mechanism/process)

AA The service provider’s experience

AA Whether conditionality was met (in a CCT program only)

Monitoring for program impact (“outcomes”) may focus on:

AA How the cash was spent (broken down by participants’ age/sex)

AA Female/male access to, and control of, the cash

AA Change in coping strategies or reported priority needs

AA Ability to save, access new opportunities, or invest in livelihoods

AA Impact on non-participants, if any

AA Impact on markets

AA Financial inclusion objectives, if relevant

Together, these M&E activities are used to understand community satisfaction, program impact, quality and
accountability, market impact, and identify problems early. What each M&E activity measures will vary according
to your program’s specific information needs.20

20 Remember, the Design for Impact Guide ([Link] is your one-stop-shop for program logic, outcomes, and agency-endorsed indicators.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 16
 ACTIVITY A: LAYING THE FOUNDATION
Checklist & Tools / Templates

Checkbox Main Steps Tool/Template Responsible

Hold Kick-off Meeting Example Workplan (Gantt Chart) Program
(Annex 1) Finance
Operations
PPM Annex 4: Tip Sheet­­—Creating
M&E
a Schedule Security
PPM Annex 7: Sample Kick-off
Meeting Agenda
Establish SOPs Sample SOPs (Annex 3) Program
Sample SOPs from E-transfer Guide: Finance
Annex 1: Operations
Annex 9
Stakeholder Register Template, Program Management Manual21 M&E
ClarifyMC
Standard roles and Plan Template22
Indicator Sub-award or service contract Program
responsibilities with PM@MC Tip Sheet­­— Finance or Operations
DM&E Tip Sheet #12: Developing a Monitoring System23
partners (if applicable) Managing Programs in Partnership (if certain tasks are
delegated to partners)
Compliance (if drafting
a sub-award or MOU)
Partner(s)
Establish CARMs CARMs guidance (Annex 4) Program

Communicate with Annex 1: Stakeholder Register Program

stakeholders (local Template, Program Management M&E
government, business Manual20
owners, and selected
communities)
Establish M&E Plan Standard MC Indicator Plan Template21 Program
DM&E Tip Sheet #12: Developing a M&E
Monitoring System22
Participate in local Program
cash coordination
meetings/mechanisms
(if they exist)

21 Annex 1: Stakeholder Register Template, MCDL, [Link]

22 Standard Mercy Corps Indicator Plan Template, MCDL, [Link]
23 DM&E Tip Sheet #12, Developing a Monitoring System, MCDL, [Link]

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 Mercy Corps

ACTIVITY B
Identifying and Registering Program
Participants
Identify Program Participants
Please see the CTP Methodology Guide24 for guidance on program participant identification across all CTP
methodologies, as well as exercises to verify participant lists.

If you are working off lists generated by someone else­­—another agency, a government body, or community
leaders­­—confirm that the individuals on the list gave consent for their data to be shared. If this did not take place,
decide how you will notify individuals about Mercy Corps’ use of their data.25

Sample Participant Selection Criteria26 can be found in Annex 5 and a Program Participant Verification Form
can be found in Annex 6. Keep in mind that your vulnerability criteria may change as the context changes. For
example, during the initial response to an acute crisis­­—when there is limited time to develop context-specific
vulnerability criteria­­—adopting the criteria and targeting approach defined by UNHCR and the Protection Cluster
is sufficient. However, as the context stabilizes and there is time to assess vulnerabilities and needs, you may shift
to scoring criteria to meet contextualized nuances.

Register Program Participants

Once program participants have been selected and verified, collect details for each participant on the
Participant Registration Lists (Annex 7). Participant verification and registration can be done simultaneously or
during separate community visits.

24 [Link]
25 For more information on best practice related to registration and informed consent, see the ELAN’s Tip Sheet #4 from the Data Starter Kit: A Primer for Humanitarians,
[Link]
26 If program participant selection criteria – or other pertinent program details – change significantly from the proposal or during implementation, the changes must be re-
corded in a Note to File (Annex 8).

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 18
The Participant Registration List may seem like a
relatively basic form, but it is a critical document, Register Alternates Alongside Participants
linking specific participants to their cash transfers.
It may also be modified to track that conditions have Certain program participants may be unable to attend every
been met in CCT programs. To make them useful, distribution event, so you should register “alternates” for
registration lists must include certain features: program participants. (See Annex E: Tip Sheets­­—“How Do
I Handle Absences?” in the CTP Methodology Guide for
AA Full name of the program participant, more information.26) An alternate is not required to attend
sex, and age each distribution, s/he is simply allowed to in the event the
AA Full name of an alternate who can registered program participant cannot.
receive the cash on behalf of the program
participant if they are unavailable or unable To register an alternate, collect the alternate’s name and
to travel to the distribution site CTP MGre information. 27 ID information and indicate which program participant the
alternate is tied to. Keep in mind that this will likely increase
AA Sex and age brackets of all household
the amount of information you are required to collect
members
(to account for all the alternates’ details) as well as your
AA Registration date monitoring efforts (to verify only registered alternates are
filling in). Despite this, it is an important step in tracking who
AA Identification (ID) type and ID number
money is distributed to, and will significantly reduce delays
AA Contact information (preferably a phone and issues during your distributions.
number and house address/location of house)
AA Confirmation that the participant meets
program eligibility requirements (i.e., Program Participant IDs
family status, lactating woman, etc.) Recording identification information for program participants
AA Participant’s signature/fingerprint can be difficult. Participants may not have IDs or may be
using a variety of IDs. Generally, any form of legitimate ID
AA Any participant-specific data related to your can be accepted, including family ration cards, health cards,
program’s M&E or donor requirements
national ID cards, and voting cards. (Unless you are working
AA Any specific data related to your service with a service provider bound by KYC requirements—see the
provider’s KYC obligations (as required; see text box “KYC Requirements of Financial Service Providers”
the text box “KYC Requirements of Financial above for more details.) Photo ID is preferred, but balance this
Service Providers” at the end of this Activity) preference against any protection and security concerns and/
Other features might include: or any limitations of your participant registration database.

AA Family profile If you anticipate participants will have difficulty providing

IDs, you may choose to create program-specific ID cards
AA Status as head of household
for them or allow community representatives to identify
AA A place to note that conditionality was met (in participants. If, in your context, you can devote time to
a CCT program) helping participants secure formal IDs, this is particularly
useful endeavor, since it can support other protection
A master list—or consolidated database­­—of all
goals. However, not all programs—particularly in an
program participants must exist. (This is essential to
emergency setting—will be able to devote time and funds
ensure accuracy of program reports and to provide
an auditable record of program activities.) Based to this effort.

27 Annex E: Tip Sheets, CTP Methodology Guide, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 19
upon this master list, we recommend that you create individual Participant Registration Lists specific to each
distribution site for easy referencing. (This is particularly true when you have numerous distribution sites and/
or a large number of program participants.) Participants must sign or fingerprint28 next to their details on the
Registration List to confirm they received their cash. In countries or communities where program participants are
unlikely to have formal IDs, the signature/fingerprint line serves as additional verification. If program participants
are willing and you have the robust technological capacity to manage a database of large files, you may
also photograph each participant, linking a numbered file (e.g., jpg 001, jpg 002) next to their fingerprint as
additional identification.

Digital Registration Systems and Shared Data Management Platforms

Increasingly, selection and registration data is digitally collected (e.g., on tablets or smart phones) and transferred
into spreadsheets and online data management platforms. To take advantage of the ease and efficiencies
provided by this type of technology, we must understand what risks are associated with these systems and how to
mitigate against data breaches. The ELAN has produced a robust Data Starter Kit for Humanitarian Field Staff29 to
help teams understand the data lifecycle and how to responsibly collect, store, and dispose of data.

Alongside the increased use of digital registration

systems, jointly-implemented cash programming is also KYC Requirements of Financial
becoming more frequent. In these scenarios, Mercy
Service Providers
Corps is one implementing agency within a larger
consortium. Oftentimes, program teams use registration Know Your Customer (KYC) information is a
documents or other forms created by a coordinating series of nationally-mandated data points that
body and/or feed registration data into a shared financial institutions must collect to satisfy banking
data management platform (e.g., RAIS—Refugee regulations. The specific data requirements vary
Assistance Information System used by UNHCR and its tremendously based upon country, region, and/
implementing partners in Lebanon.) documeion30 or the actual transfer amount. To minimize any
potential impacts on your program, it is important
Always check to see if there is an existing program
to discuss up front with your service provider what
participant information management or registration
KYC data is required. To determine which party is
system in place. Sometimes decisions about which
best placed to collect KYC data, consider
system to use are donor driven. In these cases, Mercy
two key priorities:
Corps does not have a choice. In other situations, one
NGO may be using a particular system and it appears • Minimizing the frequency program
easiest if other NGOs simply join the same system. participants are asked for KYC data
If there is flexibility, carefully assess which system • Establishing secure data collection, storage,
actually makes sense for your program and properly and sharing practices
scope and detail your program’s registration and/
or information needs. Whatever system you choose Set clear roles and responsibilities for the collection
ultimately becomes the backbone of your day-to-day and management of KYC data, typically in SOPs or
implementation and monitoring, so it is critical that it other operational documentation.30
meets all of your internal needs.

28 For guidance on collecting signatures and fingerprints, see Annex E: Tip Sheet #1: [Link]
29 A Data Starter Kit for Humanitarian Field Staff, ELAN: [Link]
30 Tip Sheet #3: Know Your Customer (KYC) Regulations, A Data Starter Kit for Humanitarian Field Staff, ELAN, [Link]
[Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 20
Use Registration to Communicate Other Program Details
Since registration may be the first formal interaction program participants have with Mercy Corps, it can be an
important opportunity to communicate key program details. Familiarize program participants with the program,
its objective and length; selection criteria (if appropriate here) and verification exercises; and the registration
process. Also clarify with participants any efforts you are making to ensure their safety during program
implementation. And ask about any concerns participants might have.

MONITORING & EVALUATION

Verification of Program Participants

Participant verification is carried out to confirm that participants meet the selection criteria. It is usually completed
when participants are selected by someone other than a Mercy Corps team member (e.g., a community selection
committee or implementing partner). Verification should take place with a representative sample of participants
randomly selected from the community’s or partner’s list (Annex 6: Participant Verification Form). For additional
guidance, see the Monitoring, Evaluation, Research and Learning (MERL) team’s Tip Sheet on Sampling31 and
Sample Size Calculator.32

Baseline Study
A solid baseline study provides the basis by which results can be compared at the end of the program. Baselines
are especially important for measuring outcome-level indicators (e.g., behavior change or use of skills over time,
improved incomes, etc.) that help accomplish your program’s goal. Your M&E plan should include clarity on what
will be measured (e.g., indicators) and the methods required for the baseline study. Since baseline data should be
collected on indicators before activities relevant to those indicators have begun, baselines are often conducted
early in program implementation. In cash transfer programs, it may be possible to collect your household baseline
information during the select targeting and registration process.

TIP It often helps if you design your endline at the same time as the baseline so that
they coordinate.

Whether your baseline includes a full survey of all program participants, or is conducted based on a
representative sample, depends upon your objectives, program plan, and donor. Talk to your M&E staff in
country about how best to manage the baseline process.

See the DM&E Tip Sheet #5: Baselines33 for further guidance.

31 Tip Sheet on Sampling, MCDL, [Link]

32 Sample Size Calculator, MCDL, [Link]
mchome-sample+size+calculator--00031-011-0-0utfZz-8-00&a=d&c=all&cl=search&d=HASH0e8e49f43b0fca2b15ae6f
33 DM&E Tip Sheet #5: Baselines, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 21
 ACTIVITY B: IDENTIFYING & REGISTERING PROGRAM PARTICIPANTS
Checklist & Tools / Templates

Checkbox Main Steps Tool/Template Responsible

Select and confirm target Note to File (Annex 8) and written Program
geographies with other approval from donor if altered Operations
implementing agencies (Security)

Determine participant selection Sample Participant Selection Criteria Program

criteria and process (Annex 5)
Select participants or conduct Participant Verification Form (Annex 6) Program
participant verification M&E
Register participants (ensure Participant Registration List (Annex 7) Program
informed consent) CaLP Protecting Beneficiary Privacy:
Informed Consent Template34 Annex 2­­—Informed Consent Template33

Reemphasize program details Program

DM&E Tip Sheetregistration
during #5 : Baselines35

Create master Registration List; Participant Registration List (Annex 7) Program

create separate Registration
Lists by distribution site if
necessary

Conduct a baseline study DM&E Tip Sheet #5: Baselines34 Program

M&E

34 Protecting Beneficiary Privacy, CaLP, [Link]

35 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 22
 Sean Sheridan for Mercy Corps

ACTIVITY C
Determining the Transfer Type,
Amount, Frequency and
Disbursement Mechanism/Provider
Determine the Transfer Type
Cash transfers come in two types: unconditional, meaning the participant receives the transfer simply based on
qualifying as a program participant, or conditional, where a participant must complete some sort of activity to
receive their transfer. Cash for work programs are a type of conditional cash transfer program: Participants must
complete a certain number of work hours to receive payment.36

Whether your program is an unconditional cash transfer (UCT) program or a conditional cash transfer (CCT) program is
likely a decision that was determined during your program’s design phase and captured in your proposal.

If you are still weighing options, know that Mercy Corps’ preference is always unconditional cash transfers,
because it reflects our belief that people know best what they need to recover from emergencies and crisis. Since
UCT programs do not require the extra step to monitor that conditions were met, they are our simpler to implement
than CCT programs.

If you have programmatic reasons to monitor or mark changes in participant behavior before transferring cash—
for example, your program is designed to increase attendance at school or repair damaged housing—a CCT
program might make the most sense. However, although certain conditions must be met for cash to be transferred,
once a program participant has received their money, they are free to spend it any way they wish. Make sure,
as you are considering CCT programs, that you doing so for a clear, legitimate programmatic outcome. We do

36 Although this is a type of conditional cash transfer, cash for work program guidelines are captured separately in the Cash for Work Implementation Guide.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 23
not want to implement CCT programs simply because we feel participants should do something to receive cash
(which is a value judgment, not a programmatic necessity.)

TABLE ONE

UNCONDITIONAL CONDITIONAL
CASH TRANSFERS (UCT) CASH TRANSFERS (CCT)

ADVANTAGES • Most flexible of all CTP types • Useful to encourage behavior change to
• More “dignified;” respects participants’ meet specific program objectives
own prioritization of needs

DISADVANTAGES • NGO has less control over spending • Conditions can influence spending
• May be perceived as more risky patterns
in insecure environments (but check • Requires extra monitoring to ensure
assumptions) conditions are met
• Fulfilling conditions may pull program
participants from other productive activities
• Conditions could place an unnecessary
burden on already vulnerable people or
delay receipt of their cash

What If I Want to Restrict How purchases (i.e., cash for shelter)­­—and there is a
Participants Spend Their Cash? programmatic reason for doing so­­—then a voucher
program may make more sense in your context. You
CTP terminology can be confusing and, occasionally, could also consider providing cash in tranches, with the
people mistake two very different concepts: the idea of second or third tranches being conditional on how the
attaching conditions to receipt of a cash transfer, and the first tranche was spent. Keep in mind that restrictions like
concept of restrictions (i.e., restricting purchases.) These this add a significant monitoring burden. Also, although
two terms are not synonymous. programs can set restrictions on purchases, in practice,
it is virtually impossible to enforce them once money has
As described earlier, conditional cash transfers require been transferred to an individual (outside of excluding
a participant to do something before they receive their that person from future transfers).
money. (For example, a participant must register their
child for school before receiving a cash transfer.) Once If you want to restrict purchases because you worry that
they receive their money, participants can spend it the cash, once received, will be spent on items you do
as they see fit. In contrast, restrictions built into a cash not agree with, check your own assumptions about how
transfer program attempt to influence what participants people in need use assistance. Also make sure your
can spend their money on after they receive it. (For participant selection is accurate. Global experience
example, participants can only purchase food, or of CTP has time and again disproved assumptions that
participants cannot use the transfer to pay rent.) recipients of cash spend it “inappropriately” or that cash
is a “riskier” form of assistance than others.
If you find yourself wanting to restrict participant

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 24
Determine the Transfer Amount
Setting MEB or SMEB
The transfer amount is based upon earlier assessments,
Transfer Amounts
such as your rapid needs and market assessments.
Your transfer amount should be linked to your program Increasingly, the transfer value for multipurpose
objectives. Some of the main questions to ask while cash transfer programs is based on a locally-
setting the transfer amount include: calculated Minimum Expenditure Basket (MEB).
AA What needs is the cash transfer intended to meet? Often, it is calculated in coordination with
AA What do you anticipate program participants a local Cash Working Group. In principle,
purchasing? / What are your program participants’ your MEB calculation is based upon what
priorities? (As defined by them, not you!) a household requires in order to meet basic
needs­­—on a regular or seasonal basis­­—and
AA How much do these items/services
its average cost over time. Mercy Corps can
currently cost in the local market?
play a critical role in ensuring this amount is
AA What are participants able to pay for on their fair and takes into consideration all household
own (e.g., what is the gap?) members­­—not just the head­­—by encouraging
that “the basket” is composed from input from a
AA What are other agencies doing? Is there a range of household members (males, females,
coordinating body—such as a Cash Working different age brackets, etc.).
Group—working to standardize transfer amounts?

When you set your transfer amount, remember to Depending on your context and the range of price
include any costs participants will incur to access that variation by location, the MEB may be calculated
transfer (transportation costs, for example, or ATM nationally or localized to specific marketplaces.
fees associated with withdrawing cash) and build in The transfer value provided to households will
a cushion to avoid accidentally eroding the value of typically be a portion of the total MEB and should
their transfer. Local tax laws can also heavily influence reflect peoples’ ability to meet some of their needs
transfer amounts. Certain countries may waive themselves (typically about 70-80% of the total
taxes on money that is transferred for humanitarian MEB.) In some countries and contexts­­—most
purposes; others may do so up to a certain threshold. often emergency responses­­—organizations are
Know what laws apply to you and structure your also calculating an SMEB (Survival Minimum
program accordingly. Expenditure Basket). The SMEB focuses only on the
minimum amount needed for physical survival (in
When setting the cash transfer amount, also take into other words, less money than an MEB).
account any seasonal or anticipated price fluctuations. If
your program will take place during one of these periods,
consider increasing or decreasing the transfer amount to
accommodate price fluctuations. Prices can be determined by reviewing secondary research (other assessments or, in
some cases, national statistics bureaus) or by conducting a baseline market price survey (see the M&E section below).
It is acceptable to change the transfer amount over the life of the program with clear justification, and you might want to
budget for this possibility from the start.

Additional information can be found in the text boxes below on MEB and SMEB calculations, as well as in “Setting the
Transfer Amount” (Chapter 2 of the CTP Methodology Guide.37)

37 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 25
Determine the Transfer Frequency
Not only do you need to determine how much you will transfer, you also need to understand how often you will
transfer money. Lump sum/single cash transfers are typically used in programs aiming to replace assets. (For
example, Mercy Corps provided a one-time, large cash transfer to displaced people in Iraq to help them settle
in to their new locations.) Smaller, more frequent payments are typically used to meet basic needs over a period
of time, for example, to cover a three-month hunger gap. Keep in mind, however, that setting the transfer
frequency is both a programmatic decision and a practical one. Numerous times, Mercy Corps teams have
had to alter their transfer frequency due to tax implications (e.g., a lump sum transfer would have been taxed too
highly38) or because the costs associated with the accessing the transfers made multiple transfers uneconomical.
Similarly, in programs where participants traveled long distances to access their transfer or spent considerable
time waiting, post-distribution monitoring has unsurprisingly revealed that participants would have preferred a
single, larger payment.39

When considering frequency of

transfers, take into consideration:

AA What are your program

objectives?

AA Which, if any, taxes apply?

Do these alter for single or
multiple transfers?

AA What costs or burdens are

associated with participants
accessing their transfer
(e.g., ATM fees, transportation
fees, wait times, etc.)?

AA What are Mercy Corps’ transfer

costs (e.g., what fees, if any,
does the service provider Sean Sheridan for Mercy Corps

charge? Do these fees change for

single or multiple transfers?)

AA The increase in staff time/admin responsibilities that multiple transfers may incur (either through managing the
actual disbursement or reconciling payment documents)

AA For any program utilizing a regulated financial institution (oftentimes an e-transfer program):
do Know Your Customer (KYC) regulations apply to transfer amounts above a particular threshold?

38 See “Setting the Transfer Amount” in the CTP Methodology Guide for additional information, MCDL [Link]
39 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 26
Determine the Disbursement Mechanism
Oftentimes, teams find determining how cash will reach their program participants—the disbursement
mechanism40—to be the most challenging aspect of implementing CTP. But choosing a disbursement mechanism or
service provider need not be.

Cash can be transferred in three primary ways:

1. Physical cash/check distributed through a third party (e.g., a bank, hawala, security company, trader, etc.)

2. E-cash, through a bank account, prepaid card, mobile phone, or other payment device

3. Physical cash distributed directly by Mercy Corps (e.g., “cash in envelopes”)

Each of these three methods has advantages and disadvantages (see Table Two below). However, a cash
distribution conducted directly by Mercy Corps team members (option #3) should always be the last resort.

Use the Response Analysis (Annex 9) to work through the decision-making process, documenting the assessments
and analyses you conducted to arrive at your final decision.

When evaluating various disbursement options,

start by looking at how people typically obtain
cash and pay for items in their community.
Then consider:

AA What is the overall amount of cash you

will transfer, and what is the individual
amount of each transfer?

AA How many transfers will take place?

How frequently?

AA On average, how far will program

participants need to travel to reach
cash-out locations (i.e., ATMs, bank
branches, mobile money network
agents, the disbursement venue, etc.)?

AA Do certain disbursement mechanisms

reduce risks associated with transferring
cash in your target areas?

AA Are remittances common? If so, how are

they typically received?
Sarah Castagnola/Mercy Corps
AA Do participants use the banking system?

40 CaLP and other organizations may refer to this as a “delivery mechanism” or “payments mechanism.”

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 27
 AA Do they currently use mobile phones?41 Do individuals own the phone, or is it shared? To what degree do
women have access to, and control of, a mobile phone?

AA How long will it take to contract with service providers and set up distributions for each option (i.e., will it
take you three months to prepare for a one-time distribution?)

AA What are Mercy Corps’ costs with each option (both in terms of money and time)? What are participants’
costs (including time, withdrawal fees)?
AA If relevant, can the disbursement mechanism be easily taken to scale (either by increasing the number of
program participants, increasing the number of transfers, or by broadening geographic reach)? Do any
of these changes impact service provider’s fees?

AA What solutions are other agencies using in the same, or nearby, areas? Could economies of scale
be reached by coordinating with others? Could coordination simplify the experience for program
participants, reduce interview fatigue, or reduce assistance duplication?

AA Does the local government disburse social service payments? Through what means?

AA Are there any secondary advantages or impacts available with particular disbursement types?
(For example, do certain options increase access to financial services, link to community savings groups,
or provide streamlined opportunities for data collection and management?)

TIP Be sure to account for all costs when considering payment options! Often we
overlook many of the hidden costs that do not appear as part of the transfer fees, but
are incurred through use of a particular system or process. These costs can primarily
affect Mercy Corps (NGO-borne fees)­­—such as fees for system set-up, training,
on-going maintenance, or replacement costs­­—or can primarily impact our program
participants (program participant-borne fees)­­—such as fees to withdraw funds,
check account balances, transportation costs, etc. However, they can greatly impact
participants’ satisfaction with the product and with the program overall.

41 See CaLP’s Sample Mobile Usage and Awareness Questionnaire for more information, [Link]
[Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 28
TABLE TWO

SERVICE PROVIDER: SERVICE PROVIDER: DIRECT BY

PHYSICAL CASH /CHECK E-TRANSFER MERCY CORPS STAFF

ADVANTAGES • Mitigates Mercy Corps’ • Mitigates Mercy Corps’ • Always an option,

cash handling risks cash handling risks provided security
• Can increase geographic • Anonymity of e-cash allows
range or number of can mitigate risks for • No service fee
participants reached participants payments to service
• Can mitigate corruption • Participants can access provider
by separating duties cash on their own • Eliminates risks
• May be convenient for schedule associated with
participants if the cash- • Can mitigate corruption working with
out partners are located and diversion; provides a unknown service
in common marketplaces digital trail of funds provider

• Often, provides real-time

data monitoring
• May be linked to larger
financial inclusion goals
• Can increase scale

DISADVANTAGES • May be expensive • Often the most expensive • Mercy Corps

• Options in target area option, unless program bares all risks
may be limited or will deliver multiple associated with
nonexistent transfers to same group disbursing cash
• Often takes the longest • Increases risks of
to set up fraud or diversion;
• Limited network without third
coverage or nascent party, checks
MNO environment may and balances are
impact quality of service reduced
or coverage • Places a significant
• If technology is new to burden on Mercy
participants, requires Corps staff
significant training and • High administrative
monitoring costs for Finance
and Program teams
• Limited opportunity
for reaching scale

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 29
Program Profile: Disbursement Mechanisms
With these advantages and disadvantages in mind, we profile three Mercy Corps cash transfer programs, the
constraints they faced, and the types of disbursement mechanisms/service.

PROGRAM PROFILE

Nepal
Following the 7.8 earthquake in April 2015, much of Nepal’s infrastructure was damaged or destroyed.
While pre-positioning work had been done to identify potential service providers in the event of an
emergency, the physical damage post-quake was so extensive that very few pre-identified financial
institutions or mobile network operators (MNOs) could operate.

Mercy Corps provided emergency assistance to 24,000 disaster-affected households in four districts,
and cash assistance was a logical solution: People’s needs were extensive and diverse and goods
were available in the market. After exploring a range of disbursement options­­—including remittance
companies, mobile money, and bank-based transfers—the country team settled on two primary
distribution mechanisms: vendors/traders and SACCOs (Savings and Credit Cooperatives).

Initially, Mercy Corps Nepal pursued only vendors/traders, because targeted villages were remote and
traders had the ability to reach more rural areas. Furthermore, the traders themselves would benefit from
their distribution fees (receiving US$1 for every US$75 they distributed) as well as purchases made by
cash transfer recipients at their shop. Since the traders were also affected by the disaster, the increased
business would help their businesses recover faster.

However, the team soon found that working only with vendors/traders was not sufficient. Vendors with
enough cash flow to carry out the distribution were located in more urban areas, up to a six-hour drive
for intended recipients.

At this point, Mercy Corps Nepal expanded

distribution options by drawing on its prior
experience working with SACCOs. SACCOs
were a logical solution: Many operated with
missions similar to Mercy Corps’ and connecting
cash transfer recipients to formal financial
institutions pre-positioned them for additional
governmental assistance (contingent upon an
account ownership at a formal financial institution.)

Both SACCOs and vendors/traders ended up

being tremendous partners in the response effort.
Tom Van Cakenberghe for Mercy Corps

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 30
PROGRAM PROFILE

Iraq
Following the outbreak of fighting in December 2013, armed conflict spread throughout Iraq, resulting
in widespread displacement and humanitarian need. In January 2015, Mercy Corps conducted a rapid
assessment in four governorates. Vulnerable households identified their priority needs as rent for shelter
and food. Due to limited work opportunities, households faced an income gap of US$334 per month—
about half the average total monthly expenditures—resulting in increased borrowing and negative coping
strategies. With a €2M program funded by ECHO, Mercy Corps was able to help 4,680 households
meet immediate needs. Conflict-affected
households were provided a single unconditional
transfer of approximately €330; vulnerable
households received a series of two unconditional
transfers of €246 each.

Mercy Corps partnered with two informal money

transfer agent networks, or hawalas, to make the
transfers. Hawalas were chosen because of the
absence of a banking system in all governorates.
Even in the few governorates where banks were
available, they did not have sufficient funds or
capability to manage the number of program
Corinna Robbins /Mercy Corps participants, and travel to them was risky.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 31
 PROGRAM PROFILE

Ukraine
Almost 10,000 people have died and 1.7 million were displaced since April 2014, when the conflict in
Ukraine’s eastern oblasts of Luhansk and Donetsk (the “Donbass”) erupted.

Mercy Corps’ work in the country was tailored to respond to needs of individuals in both the government-
controlled and non-government controlled areas of Luhansk Oblast. Because it was impossible for
Mercy Corps to transfer money to the non-government controlled side of the conflict—and thereby tap
into banking infrastructure operating within the “Luhansk People’s Republic”—individuals received direct
distributions of food and non-food items to meet their emergency needs.

Internally Displaced People (IDPs) in government-controlled Luhansk Oblast, however, were provided
with three monthly transfers of unconditional
cash (approximately US$85) to meet their non-
food needs. After evaluating a range of formal
financial institutions, Mercy Corps Ukraine chose
to work with OshadBank, the State Savings Bank.
OshadBank was selected because its reach—
particularly in rural areas in Luhansk—is deeper
than many newer banks. It is also a primary
bank used by the government for the transfer of
other social payments such as state pensions and
disability payments. Furthermore, OshadBank was
the only bank operating along the frontlines. In
support of the humanitarian response, OshadBank
also agreed to lower its transfer fee from 4% to 1%.
Brendan Hoffman for Mercy Corps

Select Your Service Provider

To distribute cash through a service provider or e-transfer provider such as a bank or MNO, follow
Mercy Corps’ procurement procedures to contract a service provider.42 Depending on the value of the contract,
this will likely require an open, competitive tender process, unless you are considering a technical provider who
would fall under one of Mercy Corps pre-qualified supplier lists.43 Once you have selected your service provider
and agreed upon a fee structure, you must enter into a written contract with that service provider.

Overall, the procurement process is one of joint ownership, led by Programs and heavily supported by Operations.
Program responsibilities include: writing the SoW, suggesting advertising venues, (likely) leading the selection
process, documenting the selection process, leading creation of the contract, and managing the contract.

42 Mercy Corps’ Field Procurement Manual was being updated when this Cash Guide was finalized. Please see the Digital Library for the agency’s current procurement guidance.
43 Check the Digital Library for current pre-qualified supplier lists.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 32
Operations responsibilities include: logging tender actions, organizing the advertising, ensuring selection is
documented properly, assisting with contract creation, and once signed, tracking progress of the contract.

The sections below will cover specific instructions related to cash transfer programs, including managing a
successful procurement, characteristics of a good service provider, and contracting recommendations.

Manage a Successful Procurement

Although this process should follow Mercy Corps’ normal procurement procedures, there are three elements that
can be challenging for teams working on cash transfer programs:

AA Confirming the value of the contract

AA Drafting clear RFBs/RFPs that provide sufficient information for potential service providers to respond well

AA Selecting a service provider that actually delivers what is promised, on time and on budget

Before You Start the Procurement Process

Estimate the time to complete a procurement action: In general, assume it will take up to six weeks to
procure a service provider, including two weeks to analyze the market; a minimum of two weeks to conduct a
tender (open and public or not); and two weeks to evaluate responses and pose questions to service providers.
(Your Operations Manager can provide a more exact estimate for your context.)

When procuring these services, keep in mind that we are often asking companies to provide services outside
of their normal operating processes, to a new or different clientele, or in a new area of operation. This may
mean that we need to negotiate a bit more, or work with the providers to co-develop a delivery plan. For cash
programs, we are rarely procuring an “off the shelf” service package.

Often, while assessing various disbursement mechanisms, you will have spoken with many of the potential service
providers in your implementing area, giving you a good sense of what services are available and their general
costs. If you do not have a base understanding—or still need a clear picture of options in your country—consider
different information-gathering tools before launching a competitive procurement process (e.g., market surveys,
Requests for Information/Expressions of Interest). This information can often prove very useful when evaluating
bids from service providers.

There are efforts underway to simplify and/or expedite these procurement processes, such as establishing
pre-qualified and global agreements for certain products (i.e., e-vouchers, prepaid debit cards, etc.) Contact
the Markets, Economic Recovery & Growth (MERG) and PALM Teams for the most up-to-date information.

Establish the value of potential contracts. Before starting the process to procure a service provider, you
will need to estimate the total value of the anticipated contract. This is necessary to determine the procurement
threshold and proper procurement processes.

For the purposes of this process, the contract value is based on the fees to be charged by the service
provider only and does not include the value of the total money to be transferred. These fees might include:
commission, hardware costs (i.e., cards, phones etc.), and startup training or customization of a platform. If you
cannot make an estimate using the service provider’s actual fee structure, estimate the applicable threshold by
assuming their transfer/distribution fee is 5% of the total amount of money to be distributed.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 33
For a summary of procurement thresholds, refer to Mercy Corps’ Procurement Manual.44

TIP If you are conducting a tender for a pilot or a small start-up project, but anticipate
expanding your program later, the PALM Team recommends that you include both
your initial pilot figures as well as your potential project at scale. This will allow you
to scale-up your program without conducting a separate tender for the full program.

Prepare Your RFB/RFP

The more specific and detailed you can be in your RFB/RFP, the better able service providers will be to present their
product(s). Ultimately, this results in more realistic options from which to choose. When preparing your RFB/RFP:

AA Thoroughly explain the operating environment so service providers understand how their services will help
your team accomplish its goal. (You may also consider allowing service providers to propose alternative
solutions to meet your stated needs.)

AA Include explanations or definitions for key terms that the private sector may use differently. (Be especially
clear about expected functionalities and use cases.45)

AA Provide clear instructions on the presentation of fees and rates. The cost proposal requirement in the
RFB/RFP should always require that each cost or fee element to be paid by Mercy Corps is presented
separately (e.g., distribution fees are listed separately from data management fees.) Some services
providers will want to present the fee structure in their own format, but most are able and willing to follow
guidance specified by us.

AA Require that service providers state their cash flow requirements necessary to carry out the distributions.

AA Be clear about what functions are required and what are optional, as well as how responses will be
scored in competitive processes.

AA Allow sufficient time for providers to respond to your tender. (Ideally, allow four-six weeks; if shorter,
share as much information as possible to help service providers prepare adequate bids).

TIP RFPs are much more complicated for an e-transfer program; for this reason, please
also read the E-transfer Implementation Guide.46 While the steps covered in this
Implementation Guide apply to both physical cash and e-cash, cash delivered
electronically requires additional assessments of network coverage, service provider
capacity, user capability, etc. See also “Recommended Minimum Standards
to Implement a Mobile Banking Program,” 47 and “E-transfers One Year Later:
Workshop”48 produced by the Mercy Corps Philippines team.

44 Please see footnote 42

45 The ELAN’s Prepaid Card Products for Humanitarian Programs: Actors, Insights & Recommendations includes a comprehensive list of common humanitarian program defini-
tions which differ from their private sector equivalent (e.g., an INGO “Program Manager” and a “Program Manager” such as MONI. MCDL, [Link]
gsdl/docs/[Link]
46 [Link]
47 Recommended Minimum Standards to Implement a Mobile Banking Program, MCDL, [Link]
48 E-transfers: One Year Later Workshop (Minimum Standards for an E-transfer Program”), MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 34
Advances are most often required when the service provider you have contracted either does not have sufficient
capital (liquidity) to cover the total value of payments to be made or when they do not fully trust Mercy Corps
to pay them within a reasonable amount of time. Oftentimes, a service provider’s hesitation to work without an
advance is a combination of both factors, combined with a lack of familiarity with our process or organization.

Wherever possible, Mercy Corps’ preference is for fees/costs to be paid on a reimbursement basis,
i.e., after the distributions have been made and documented. Include language about this in the RFB/RFP itself.

The RFB/RFP can directly address the advance/cash flow issue in a couple different ways:
1. You can restrict eligibility to only those firms with the liquidity to provide credit terms for the disbursements (i.e.,
repayment within 30 days of invoice). Keep in mind that in some contexts, this may severely limit your options.

2. You can provide options for how the distribution might be financed, such as:
a. Reimbursement
b. Reimbursement with funds to be placed into a holding or segregated account by Mercy Corps until
after the disbursement is made
c. Funds advanced to the service provider before the disbursement—with certificate of insurance against
loss or theft
d. Funds advanced to the service provider with no formal assurances

If you pursue option 2, cash flow requirements must be incorporated into the selection scoring.

If the service provider requires an advance, that advance should, wherever possible, be kept to a limited
proportion of the total money to be distributed (i.e., 20% advanced, and 80% + fees as a reimbursement.)

We encourage you to contact the Treasury and MERG Teams at headquarters to get additional information on
bank contacts, other financial market information, and/or average rates for similar services.

TIP Mercy Corps prefers to limit the use of advances as much as possible.
When a service provider requires an advance to supplement their liquidity, try to
negotiate for the advance to be only a portion of the total amount to be distributed.
Also plan to advance only for the specific upcoming distribution, rather than all
combined distributions.

Characteristics of a Good Service Provider

Working with service providers can be tricky: Programs depend heavily on the service provider’s capacity to
deliver work that may be outside their normal business processes. In practice, we have found that some of the
most successful partnerships and smoothest programs partner with service providers who:
AA Ask questions to understand the program objectives, target communities, and timelines

AA Have a longer-term business plan or incentive for the target communities which extends beyond your
program’s timeline

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 35
 AA Proactively assign sufficient staff and resources to the project

AA Actively communicate about setbacks, challenges, and potential sticking points in the distribution design.

AA Have prior experience working with NGOs and/or humanitarian assistance programs (although this is
not a requirement for a good partnership)

Ultimately, superior service providers see themselves as an active partner in program delivery and are invested in
building relationships with the target community.

Contract with Your Service Provider

The contract should clearly detail the services the vendor will provide. It should also always be tailored to your local
context, including changes to accommodate local legal requirements and the specifics of your program design/
disbursements. However, as a general rule of thumb, all contracts (Annex 10) and their annexes must cover at least:
AA The anticipated amount to be transferred, including number of recipients, number of transfers per
recipient, transfer amount per recipient, and total amount to be transferred

AA The transfer schedule­­—the dates and specific locations (if known) of planned transfers OR timing and
method of notification of transfers (if not known)

AA Fee calculation, with distribution fees separated from data management or any other fees (for example, is
the commission calculated on the total amount disbursed, or is it a flat rate per transfer?)

AA Conditions and timelines for advancing funds (if required) to be disbursed by the provider. Contracts should
identify the holding or segregated account49 in which the advance will be held and the transfer conditions
to provider. It should also detail the process for reconciling any advances with actual distributions.

AA Payment schedule to the service provider (e.g., monthly based upon amount transferred in the month)

AA Documents required from service provider to issue payments (e.g., invoice, receipts, etc.)

AA Roles and responsibilities of Mercy Corps and the service provider before, during, and after payment
disbursements, including specifics of: program participant (and alternates) ID requirements, and who is
responsible for the transportation of funds to remote locations

AA Liability and risk concerns­­—who controls the funds at each point of the disbursement process and the
contract’s legal jurisdiction.
AA If applicable, requirements to maintain insurance coverage and notices of any status changes

The content of contracts is jointly produced between the Operations and Programs Teams. Contracts must be
closely reviewed by in-country legal counsel and the Country Finance Manager/Director. Final approval and
final signature is normally the responsibility of the Country Director or, if applicable, the designated representative
according to the Approval Authority Matrix.

When working with service providers for e-cash programs, Mercy Corps’ experience has shown that the most
effective partnerships document service expectations and process standards in a Service Level Agreement
(SLA).50 An SLA is an agreement between the service provider and Mercy Corps that focuses on specifics of

49 Please consult the Treasury Team at HQ for specific guidance related to holding accounts.
50 Reeve, Greg, ELAN: Mobile Money Assessment and Contracting Guide, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 36
performance standards, processes, and expected service quality. This differs from a contract, a legal document
which outlines the services to be provided, duration, cost, and legal relationship between the two parties.
Examples of strong SLAs can be found in Annex 11. Detailed contracting guidelines for e-cash service providers
can also be found in Annex 8 (E-cash Contract Checklist) of the E-transfer Implementation Guide51 and Part 3 of
the Mobile Money Assessment and Contracting Guide.52

MONITORING & EVALUATION

Baseline Market Price Survey

To effectively monitor your program’s impact on the market, it is important to establish a baseline for market prices
against which you can measure price changes once your program begins. This helps you determine (or reconfirm)
the transfer amount. The baseline market price survey is conducted during the design phase as a key piece of
information to set your transfer amount. Since a gap often exists between when the program was designed and
when implementation begins, it is good practice to verify your original data again and set your baseline for
ongoing market price monitoring and post-distribution monitoring (PDM).

To conduct the baseline price survey, fill out the Baseline Price Survey template (Annex 12) with the most
commonly-needed items (determined by your needs assessment and in consultation with local team members)
and establish the current market price and availability for each item, as well as the average high and low season
prices. Compare these figures to those you collect once program implementation begins to determine if prices are
still within normal bounds. Then, input the data collected into the Market Price Monitoring Database (Annex 12a).
In some countries, secondary data on market prices will be available. WFP and organizations like FEWS NET
often regularly collect prices and may be a good resource to consult. If secondary prices data is available, you
may not need to allocate further resources to collecting your own price data.

Increasingly, as agencies move towards harmonization and increased coordination of cash programs, market
monitoring is being shared/coordinated across agencies to generate improved data sets and increase efficiencies
in resource allocation. Check with your local Cash Working Group before you establish a Mercy Corps-only
market monitoring system.

51 [Link]
52 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 37
ACTIVITY C: TRANSFER TYPE, AMOUNT, FREQUENCY AND DISBURSEMENT
MECHANISM PROVIDER
Checklist & Tools / Templates
Checkbox Main Steps Tool/Template Responsible
Determine/confirm Note to File (Annex 8) if changed; Program
transfer type if required, written approval from donor
Verify baseline market Market Price Survey (Annex 12) Program
survey data conducted
during design phase
Coordinate transfer Note to File (Annex 8) if changed; Program
amounts with other if required, written approval from donor
implementing agencies
Determine disbursement Decision Tree and Response Analysis Program
mechanism (Annex 9)

Contract third party Cash Transfer Contract examples Program

vendor or service provider, (Annex 10) Operations
if necessary Annex 8: E-cash Contract Checklist,
E-transfer Implementation Guide
SLA examples (Annex 11)

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 38
 Vassiliki Lembesis/Mercy Corps

ACTIVITY D
Communication and Training
Communicate General Program Information
Communicating program details is an important component of transparency and successful program
implementation. Program participants should understand the program’s overall aim, the criteria and rationale
for selection (if appropriate), and the process for receiving their transfer. This is especially true if this is their first
time participating in a cash transfer program or if the distribution mechanism is unfamiliar to them. Determine the
best time to communicate key program information. Ideally, this would be close to the first transfer, so people
remember any instructions. However, you might choose to communicate program details earlier if you are also
using that meeting to distribute program-related materials (e.g., ID cards, ATM cards, or mobile phones.)

Community representatives (and alternates/helpers, if applicable) should also be invited to attend program
information sessions to better understand the transfer process and assist participants.

During these sessions, cover:

AA The overall cash transfer process, from registration through to distribution and program evaluation

AA The transfer schedule and amount

AA Participant responsibilities during disbursement, including providing an approved type of ID, signing/
fingerprinting, etc.

AA Any safety and security risks associated with cash handling

AA How to give feedback and receive assistance through CARMs

AA The monitoring process and what to expect

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 39
 AA How any collected personal data will be used or shared

AA Consequences for failing to comply with program procedures

AA Any other pertinent program details

TIP A principle of good programming is that­­—at some stage­­—you communicate why

and how participants were selected for a program. This will look quite different from
program-to-program. Sometimes, if you are conducting community-based targeting,
the selection criteria are publically agreed-upon. Other times, you may convey this
information one-on-one after conducting household vulnerability assessments.

Additional Training Topics for E-Transfer Programs

Cash transfer programs are often relatively simple programs. However, when a team is using a new technology to
disburse cash­­—for example, a bank card tied to an ATM system or mobile money­­—it is critical to devote sufficient
time to ensure participants understand how to access their transfer.

Alongside program participants, teams may also need to devote time and resources to training service providers
and/or payment agents, since humanitarian programs can pose new challenges for them.

E-transfer Training Topics for Program Participants

Potential additional topics include:

AA The technology itself: how it works; requirements for PIN entry, identification, etc.

AA Any fees associated with the technology (e.g., transfer fees, costs associated with accessing a support
hotline, balance inquiry fees, incorrect PIN entry fees, foreign exchange fees if applicable, etc.)53

AA Responsible PIN and account management (i.e., do not share your PIN with others)

AA How, when, and where participants can access their cash (during set agent hours, 24-hours a day, etc.;
specific cash-out locations; ID requirements at cash-out points, etc.)

AA Detailed instructions on using an ATM/Point of Sale (POS) if they have not used one before

AA Any additional requirements that might be associated with the service (i.e., in certain mobile money
programs, participants may be required to keep their mobile money account active by conducting a
certain number of transactions per month)

AA Any limits or restrictions placed on their accounts (e.g., daily cash withdraw maximums, minimum account
balances, etc.)

AA How to replace lost equipment (e.g., SIM card, mobile phone, debit card, etc.)

53 For additional information, see “Training: Inclusion for the Most Vulnerable” (pages 19-20), E-Transfer Implementation Guide, [Link]
[Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 40
Trainings should be simple and dynamic to help participants remember key points. Successful training techniques
include simulations, role-playing, demonstrations and posters depicting the process through pictures, especially
for illiterate or semi-literate participants. While designing trainings and materials, always take into consideration
the literacy and numeracy levels of your intended audience. Examples of training materials can be found in
Annex 13: Sample Training Material 54 of the E-transfer Implementation Guide. The ELAN has also collected
sample training materials for global e-transfer programs.55

Utilizing E-Transfers to Increase access to livelihood protection tools such as insurance.

Financial Inclusion
Many questions still remain about how to responsibly link
Emergency program participants are often excluded or
e-transfer recipients to financial services. We do know that
underserved by formal financial systems. Typically, they
simply transferring cash through a digital platform rarely
rely on hard currency and informal financial services
leads to sustained use of new financial services.56 Successful
offered by family or community members. They may
financial inclusion programs make a deliberate effort
ask friends or neighbors to act as “money guards,”
to connect e-transfer recipients to products that are well
holding cash for a nominal fee, or borrow food from a
understood and trusted and to financial institutions with a
neighborhood store (store credit). Cash may be stored
long-term interest in that client base.
under a mattress or invested in assets such as jewelry or
livestock. Disasters can disrupt these previously relied- Always keep in mind, however, that the focus for all
upon informal systems and coping mechanisms: People emergency programs should be to get life-saving
may lose physical cash stored in their homes or with assistance out the door. Be wary when considering
money guards, or access to purchasing with store credit. new technology, products, and services for participants
coping with crisis. For additional information on financial
Leveraging cash transfer programs to improve access
inclusion in CTP, consult “Financial Literacy Findings
to financial services can potentially break disaster-
and Recommendations: TabangKO and SimulaKO
vulnerability cycles. Improved access to financial
Programs”57 and the Financial Services Primer for
services can diversify where and how people save; open
Humanitarians.58
more avenues to access cash and credit; and increase

E-transfer Training Topics for Service Providers and/or Payment Agents

Programs implemented by organizations like Mercy Corps occasionally stretch service providers beyond their
comfort zone. We may not be their typical client and our program participants may not be their traditional user.
In these situations­­—when we ask payment agents to use new technology (such as POS units) or to alter their
practices (such as checking specific forms of ID), it is critical to provide them with additional training as well. In
some situations, you might also want to clarify any expectations for cash-out processes or other steps in your
program. Make sure to also introduce service providers to our protection considerations and concerns, as these
may be new concepts for them. financial services 56 SimulaKOPrograms57 Humanitarians58

54 Annex 13: Sample Training Material, The E-transfer Implementation Guide, MCDL, [Link]
55 Cash delivery mechanism – sample training materials, [Link]
56 ELAN, “Can E-transfers Promote Financial Inclusion in Emergencies?” Case Studies from Bangladesh, Ethiopia and Zimbabwe, [Link]
57 “Financial Literacy Findings and Recommendations: Tabangko and Simulako Programs,” MCDL, [Link]
[Link]
58 Krishnan, Vaidehi, ELAN: Financial Services Primer for Humanitarians, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 41
For additional tips for successful e-transfer partnerships­­—and a better understanding of typical hurdles­­—see the
ELAN research paper, Partnering for Success,59 which noted seven key findings related to e-transfer programs.

To better evaluate your service provider’s capacity, review the ELAN’s Mobile Money Assessment and
Contracting Guide.60

ACTIVITY D: COMMUNICATION AND TRAINING

Checklist & Tools / Templates

Checkbox Main Steps Tool/Template Responsible

Communicate key programmatic Program
details to participants
Design participant (and/or service Annex 13: Sample training materials, Program
provider) trainings E-transfer Implementation Guide
The ELAN’s online collection of training
resources
Prepare participant (and/or Program
service provider) training; arrange
location/rent space

Prepare materials: fingerprint pads,

ink, posters, required documents, etc
Conduct participant training Participant Registration List (Annex 7) Program

Conduct service provider training Program

(if applicable);

59 Partnering for Success: E-cash Use in Humanitarian Programming, ELAN, MCDL, [Link]
60 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 42
 Tom Van Cakenberghe for Mercy Corps

ACTIVITY E
Distribution (Cash Disbursement)
Our guidance on distribution is divided into two primary sections.

The first section explains how to plan and document your distribution based upon whether your program
includes conditions (e.g., a UCT program versus a CCT program). The main tools you will use for this are your
Distribution Plan (Annex 13) and Distribution Form (UCT: Annex 14 or CCT: Annex 15). A Distribution Plan is a
high-level tool used to chart your distribution for each location. Think of it as the overall schedule for distributions
throughout the life of the program.

A Distribution Form documents transfers to individual program participants on a specific day and at a specific
location. It serves as the list of recipients scheduled to receive cash at each specific distribution.

Guidance in the second section covers your process for managing distributions. This process depends
heavily upon the type of distribution mechanism you have chosen. Teams conducting e-transfers through a bank/
MNO will have very different areas of concern than those utilizing an informal money transfer agent (e.g.,
hawala) or distributing cash directly.

The second section is divided into two sub-sections:

1. The distribution process as it applies generally across most scenarios.

2. Factors specific to a service provider/disbursement mechanism. Guidance is outlined for specific

scenarios, including:

AA Physical cash/check distributions by a service provider

AA E-transfers
AA Physical cash distributed by Mercy Corps

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 43
Only apply the sub-section(s) that is relevant to your particular program.

Complete Your Distribution Plan

Regardless of which distribution mechanism you use, all cash distributions should have a completed Distribution
Plan (Annex 13). A Distribution Plan helps to clarify roles and responsibilities of different team members and/
or service providers; clarify communication points; ensure staff and administrative resources are available on
distribution days; and plan cash flows for the office as well as overall program spending.

Prior to distribution, prepare a Distribution Plan for each site. Programs should create a both summary Distribution
Plan covering all program areas, as well as a separate, detailed Distribution Plan for each distribution site. Each
Distribution Plan should contain the following:

AA A unique distribution number61

AA The location of the distribution (town/village/community) and names of any local authority figures who
may need to be consulted or invited

AA The date(s) cash will be distributed

AA The anticipated number of participants receiving cash

AA The amount of cash to be distributed to each individual or the overall amount to be distributed on that day

AA The team member(s) assigned to perform the distribution and/or contact information for the service
providers involved in the distribution

AA The team member (s) assigned to monitor the distribution

The Distribution Plan is then approved by the Program Manager (or equivalent), with copies provided to the
Finance and Operations teams. The Distribution Plan is a “living” document and should be reviewed and updated
on a regular basis.

TIP Include your Finance and Operations Teams in developing the Distribution Plan.
This way they are given warning that large payments will be made to service providers.
Operations may need to help you with security, ensure that vehicles are available,
and/or help with procuring services or managing the service provider contract.

61 A unique distribution number is typically some derivation of date + sequence; the distribution number helps differentiate between multiple distributions within the same
location. For additional guidance, see the instructions page for Annex 13: Distribution Plan.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 44
CCT Programs Only: Verify Conditions
CCT programs require an additional step before funds are disbursed: confirmation that the condition was met by
the program participant. This condition confirmation process should be accounted for when you establish your
Distribution Plan. It should also be reflected in your Distribution Form and supporting documentation.

Your Distribution Form (Annex 15: CCT) is essentially a modification of your Program Participant List. It includes
additional columns to record that the program condition was met and for the participant to sign that s/he
received their cash. If your transfer amount will vary depending upon level of participation, you may also need
to include an additional column to demonstrate any transfer calculation and the amount owed. CCT programs
often require additional support documentation to verify a condition was met. Common examples are captured
in the Table Three below.

If you are using a data management platform, check that the system can help you track conditions. This is
especially important if you are using the platform to generate your Distribution Form.

TABLE THREE

CONDITIONS AND COMMON SUPPORTING DOCUMENTS

TYPES OF CONDITIONS SUPPORTING DOCUMENTATION EXAMPLES

• Basic HH construction (shelter or latrine rehab) • Photographs, receipts, monitoring visit reports
• Apprenticeship / training / basic employment • Attendance records, performance reviews,
monitoring visit reports
• Service access (vaccinations, medical clinic) • Receipts, provider records
• School attendance • Attendance records
• Business support • Receipt, photographs, business plans

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 45
Manage Distributions
The Overall Distribution Process
The steps listed below cover all aspects of managing a distribution. Not all steps will be carried out by Mercy
Corps team members for all programs; some may be completed by the service provider or another third party.

AT LEAST ONE WEEK PRIOR TO DISTRIBUTION

AA Confirm Distribution Plan and support needs with Finance and Operations.

AA Conduct gender and protection analyses to inform safety, management, and scheduling issues for distribution.

AA Locate the distribution site: Ensure all locations are secure and adequate to manage the number of
program participants you expect to serve per day. Secure any required permissions to use the site.
Consider adequate protection from the weather, safe and dignified crowd control to manage queues,
and contingencies for people with special needs (e.g., elderly, pregnant and lactating women, people
with chronic health conditions, disabled, etc.)

AA Prepare your Distribution Form (Annex 14 or 15) and share with your service provider.

AA If needed, pay any negotiated advance. (See Text Box “Paying Your Service Provider” later in this Activity
for specific documentation needs.)

AA Plan for staffing: At a minimum, two Program team members must be present to monitor and/or assist
with crowd control. Ideally, you should also have an M&E Officer present to run the CARMs mechanism.
However, these numbers are just a general rule of thumb. If you will be serving a large number of
program participants, you may want to increase the number of team members present.

AA Notify community representatives about the upcoming distribution so that they can be present to help with
issues that may arise, including verifying participants’ identities.

ONE TO TWO DAYS PRIOR TO DISTRIBUTION

AA Inform program participants of the timing and location of the distribution. Give the minimum amount of
warning possible without severely hampering participants’ ability to reach the distribution site (particularly
if travel is required.) For example, you might notify a small village the day of a distribution. In a large
urban center­­—or where people need to travel to a distribution site­­—you may give more notification.

AA Collect any other distribution materials. Include copies of M&E Monitoring forms and Notes to File. Collect
banners, markers, pens (or ink pads for thumbprints), tape, tablets or any other devices used to track transfers
made. Include chairs, tarps to shield from sun or rain, and/or drinking water to make any waiting tolerable.

THE DAY OF DISTRIBUTION

At the Distribution Site:

AA Bring copies of the relevant Distribution Forms (Annex 14 or 15) to the site.

AA Arrive early to prepare the site. (This may include setting up ropes to indicate where people should queue;
adding signage if there are multiple steps within the distribution process; creating separate entrances/
exits for men and women; setting up areas for sitting or resting in the shade; etc.)

AA Set up your CARM station or process for managing complaints and feedback.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 46
Once the Distribution Has Begun:
AA Each participant must present the required ID when it is her/his time to receive cash. Upon receipt,
the participant signs/fingerprints the Distribution Form (Annex 14 or 15) to confirm receipt.62 After
all participants have received their cash, the team members leading the distribution­­—as well as the
community representative(s) or service
provider­­—sign and date the Distribution Form.

AA Distribution may also be an opportunity to If You are Conducting a

collect missing data on program participants, High-Volume Distribution
new data (if needed), and/or baseline data
for ongoing monitoring of the program. This High-volume distributions require additional planning
information can be collected while program and logistics to ensure program participants are
participants wait in line (to avoid delays during processed quickly and do not face undue burdens.
distribution) or when they receive their cash. Ideally, set up multiple cash distribution points
within your individual distribution site and split your
POST-DISTRIBUTION
Distribution Form into two (e.g., A-M and N-Z,
AA Update the Distribution Plan (Annex 13; or 1-500 and 501-1000) or any other logical
or database) based upon actual distribution breakdown, to prevent having multiple full/master
figures from your signed Distribution Form(s) and lists floating around at a distribution point.
file according to your in-country filing system.63

AA File any Cash Distribution Monitoring Forms

(Annex 16) or Note to Files (Annex 8)
regarding incidents during the distribution.
Managing Subsequent Distributions
AA Debrief with the team about adjustments to
Generally, management staff should attend the
improve the next distribution. Consider: the
first few distributions to ensure they are functioning
distribution process, safety, service delivery,
support given to people with special needs, etc. well. For subsequent distributions, they should
attend arbitrarily, with no prior notification, to
AA Service providers will invoice for the amount conduct spot checks.
transferred and any agreed-upon commission
or fees. This will likely be within one to two
weeks of the distribution. At this point, you will
need to process the payment request with your Finance team. (See the text box “Paying Your Service
Provider” for specific documentation needs.)

62 If you have allowed alternates, see Tip Sheet #2: How Do I Handle Alternates/Subsitutions?, Annex G in the CTP Methodology Guide.
63 PMM Annex 10: Program File Contents Checklist, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 47
Pay Your Service Provider In scenarios where your service provider requires
an advance, submit the following documents to the
To complete payment for the transfer when no Finance team approximately one week before the
advance is required, submit the following cash advance is due:
documents to the Finance team:
• A Payment Request form to pay the advance
• A Payment Request
• The supporting documents to process the
• Annex 17: Cash Transfer Settlement Form advance: a copy of your signed contract/
• Service provider’s invoice amendment(s), a copy of your detailed
Distribution Plan (Annex 13) for that location,
• Copy of signed contract and any amendments
as well as a copy of the corresponding
• A copy of the completed detailed Distribution Forms (Annex 14 or 15)
Distribution Plan (Annex 13) and Distribution
To complete the payment after the distribution has
Forms (Annex 14 or 15), signed by program
taken place, submit:
participants as well as team members and/
or local community members present at the • A second Payment Request (which is the
distribution remaining balance plus any fees)
• Annex 17: Cash Transfer Settlement Form
• Service provider’s invoice
• Copy of signed contract/amendments
• A copy of the completed Distribution Forms
(Annex 14 or 15), signed by program participants
as well as team members and/or local
community members present at the distribution)

Additional Distribution Considerations

Your program’s plan for managing distributions will be heavily dependent on how you plan to deliver cash as well
as your contract with the selected service provider. As such, we have divided distribution guidance below into
three primary scenarios:
AA Physical cash/checks distributions by a service provider

AA E-transfers

AA Direct physical cash distributions by Mercy Corps

Within each of these potential scenarios, you will also need to take into account whether distributions are taking
place at your provider’s traditional place of business (e.g., a bank branch) or at a new business location (e.g.,
a centralized distribution site selected by your Program team.) Your program may also need to accommodate
multiple distribution methods within its single, overarching framework (e.g., debit card distribution in an urban core
combined with traditional direct cash distribution managed by a money handling company in rural areas).

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 48
 TIP Many of the specific steps, timing, and division of roles and responsibilities will vary
depending upon your contract or SLA with your service provider. Issues like security,
distribution site distance for program participants and Mercy Corps team members, and
liquidity can all influence how you structure distributions. No guidance document can
accurately capture all possible distribution iterations; for this reason, please reach out to
the MERG Team for assistance.

Physical Cash/Check Distributions by a Service Provider

Typical service providers involved in cash distributions may include banks, informal money transfer agents
(hawalas), SACCOs or other microfinance entities, and traders. The primary variable to consider when managing
these types of distributions is whether the distribution will take place at that service provider’s regular place of
business (e.g., a brick-and-mortar bank branch) or at a new location (e.g., an informal money transfer agent
traveling out to a village where their agent network is not present.)

Cash distributions at a service provider’s business location can be some of the easiest to manage, because
your program’s cash transfers are routed through existing systems. Community members are used to seeing
cash exchanged at these locations and the risk of transferring cash is mitigated as part of the business’s normal
operating procedures. Additionally, program participants may already be familiar with the service provider you
have selected through other financial transactions they regularly conduct.

Cash distributions can also be carried out by a service provider, but at a distribution site other than their typical
business location. For example, after the earthquake in Nepal, Mercy Corps contracted 14 SACCOs, one bank,
and two local traders to distribute cash in 24 villages across four districts. Distribution sites included schools and
community spaces.

In these scenarios, Mercy Corps teams still avoid the risks associated with carrying and distributing cash. These
types of distribution are quite common when operating in remote or underserved areas. Keep in mind, however,
that since your service provider is operating outside of their normal business procedures or geographic area,
these distributions may require significant logistical management from Mercy Corps. (For additional guidance on
best practice managing distribution sites, see “Direct Distribution of Physical Cash by Mercy Corps” below).

DISTRIBUTION CONSIDERATIONS: AT YOUR SERVICE PROVIDER’S REGULAR PLACE OF BUSINESS

In an ideal situation, program participants would receive their cash alongside the service provider’s regular
customers, arriving sporadically throughout the business day. What often happens, however, is that program
participants arrive all at once, essentially transforming that business location into a distribution site. Both parties
may need additional assistance. Participants may need extra support to move through the distribution process
quickly. The service provider may also need additional support if we have­­—for example­­—altered their standard
ID verification or documentation processes.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 49
To manage this successfully and to ensure that traffic from your program does not impede the service provider’s
normal business activity, consider providing additional support at the business location during the distribution.64
Support may include:

AA Managing crowds in a respectful and dignified way, including contingencies for people with
special needs (e.g., elderly, pregnant and lactating women, people with chronic health conditions,
disabled, etc.)

AA Providing additional program information to program participants

AA ID verification (agreed-upon in advance)

AA Assisting participants who may struggle to understand the process (i.e., those who are illiterate or are
unfamiliar with the business location)

AA Collecting participant feedback on the distribution process

DISTRIBUTION CONSIDERATIONS: AT A NEW LOCATION FOR YOUR SERVICE PROVIDER

If your service provider is distributing cash outside of their regular place of business, the distribution will be
similar to direct cash distributions organized and implemented by Mercy Corps. (In other words, they will require
a lot of work from both Mercy Corps and the
service provider.) Make sure you have agreed
in advance­­—likely during contracting­­—which
organization is responsible for each step within
the distribution process. Activities that should be
assigned responsibility can include:

AA Securing a building/location for the

distribution that is safe and accessible

AA Transporting cash to the distribution site

AA Registration and ID verification

AA Managing the flow of people during the

distribution in a way that is dignified and
provides contingencies for people with Corinna Robbins/Mercy Corps
special needs

AA Monitoring safety during the distribution

AA Providing additional information (about other products, services, entitlements, etc.)

E-transfers
In the right environment, e-transfers through a service provider can provide the best of both worlds: cash is no
longer physically distributed by the service provider or by Mercy Corps, and program participants can withdraw
their cash at their own convenience. However, negotiating contracts with the various private sector actors
involved in e-transfers­­—typically, banks, and MNOs­­—can be a lengthy, time-intensive process. If the network

64 Keep in mind this will look very different from service provider-to-service provider.

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 50
environment is underdeveloped, Mercy Corps can also end up investing considerable time and energy managing
individual cash-out agents in program areas.

If your team will be transferring cash electronically, make sure to access the other guides and resources we have
regarding e-transfers, including:
AA The E-transfer Implementation Guide:65 a step-by-step guide for implementing an e-transfer program
AA Annotated Bibliography for Mercy Corps Philippines:66 a complete list of internal and external documents
produced by the Mercy Corps Philippines team.
AA Electronic Learning Action Network (ELAN):67 regularly-updated resources for e-transfer program
managers and private sector partners

Remember, e-transfer programs often have some sort of distribution (of hardware, mobile phones, ATM cards,
etc.) The process to distribute hardware or goods associated with an e-transfer program will be similar to a cash
distribution conducted by Mercy Corps, or a typical commodity distribution component. For additional guidance,
you may refer to the instructions for directly distributing cash (covered below in “Direct Distribution of Physical
Cash by Mercy Corps”) to understand best practice for distribution logistics.

As e-transfer products and service providers continue to evolve, reach out to the MERG Team for the most
up-to-date recommendations.

Direct Distribution of Physical Cash by Mercy Corps

Mercy Corps teams should only directly distribute cash when no suitable third party vendor or service
provider exists. Although directly distributing cash gives Mercy Corps complete control over the distribution, it
is the least desirable option, since the security risks associated with distributing cash are borne solely by us. This
method also requires the involvement of significantly more Mercy Corps team members to ensure segregation of
duties and to reduce the risk of fraud associated with moving and distributing large amounts of cash.

Although in some ways simpler to set up­­—and seemingly less expensive than using a service provider­­—direct
distributions by Mercy Corps incur significant costs in staff time and resources.

If you have conducted your response analysis to scan all possible disbursement options (documented with
Annex 9: Response Analysis) and have decided to distribute cash directly, follow both the general guidance for
distribution management as the start of Activity E as well as specific instructions below.

Additional steps and safeguards when Mercy Corps is directly distributing cash include:

PRIOR TO DISTRIBUTION
AA Submit your Cash Advance request. Make sure you have given sufficient warning to your Finance team.
Since you will likely be requesting a large advance, your Finance team needs time to process such
a large withdrawal and ensure sufficient cash on hand. This is especially important in countries with
currency controls or where we may have difficulty procuring large volumes of cash at a time. The request
should be part of the cash flow projections done for each future month’s planning.

65 [Link]
66 Annotated Bibliography for Mercy Corps Philippines, MCDL, [Link]
67 ELAN website, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 51
 AA Plan for staffing at the distribution. At a minimum, it is important to have one Finance team member and two
Program team members at each distribution. However, consider the number of program participants you will
be serving: If it is large, you may want to increase the number of team members present.

AA Organize the cash: If transfer amounts are uniform, place the exact amount in individual envelopes to
avoid counting large amounts of cash in public. If the quality of bills is good enough to use a counting
machine, consider using one to speed the process and reduce the potential for human error.

AA When you withdraw the cash from the bank, consider the transfer value and ensure that you get cash in
denominations to match. For example, if you are transferring US$25 to each participant, ensure you have
a sufficient number of US$5 bills for each recipient.

THE DAY OF DISTRIBUTION

AA Finance Team members present at the distribution must remain in control of the cash at all times.

AA Plan carefully for security with the Operations Team. Security planning includes both the safe movement of
team members and cash to the distribution site, as well as security while at the site.

AA Generally, management staff should attend the first few distributions to ensure they are functioning well. For
subsequent distributions, they should attend arbitrarily, with no prior notification, to conduct spot checks.

POST-DISTRIBUTION
AA Clear the Cash Advance. At the end of the distribution, team members leading the distribution complete
their Distribution Form by inputting the total amount of money received, total amount of money disbursed,
and any remaining, unclaimed difference.

AA Once the distribution is complete, the advance should be cleared with Finance and documentation
reconciled within the required time limit for clearing advances. Generally this would happen as soon as
the distribution team returns to the office.

Specific guidance for Operations and Finance team members supporting these distributions are included in
Guidelines for Finance Staff (Annex 18) and Guidelines for Operations Staff (Annex 19).

MONITORING & EVALUATION

Monitoring the Distribution­­—Process Monitoring and

Quality Assurance
M&E activities carried out during distributions monitor the process; they can also serve as a good opportunity to
conduct quality assurances and control. While Program team members manage the actual distribution, M&E or other
Program team members should monitor the distribution, document any unusual events (substitution of participants, etc.),
and complete a Cash Distribution Monitoring Form (Annex 16).

The Cash Distribution Monitoring Form captures participant feedback about the distribution process to increase
efficiency of future distributions or to record any problems that may require action. It should be completed by a team
member not involved in directly distributing cash. If that is not possible, then those carrying out the distribution can also

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 52
complete the Cash Distribution Monitoring Form. Program staff should meet to analyze the information collected to
determine whether adjustments need to be made to the distribution process for future distributions.

With consent of participants and where appropriate, Program staff should also photograph the distribution to
document its occurrence.

Post-Distribution Monitoring (PDM)

Post-distribution monitoring (PDM) is conducted with program participants and is primarily focused on process
and results. PDM should be conducted in a reasonable time period after each cash transfer, typically two weeks
after a transfer has taken place.

If your program used an e transfer system that did not have a specific distribution date (i.e., cash was transferred
to program participants’ mobile money accounts and they could collect it at their convenience), conduct your
PDM about two weeks after the participants were notified the cash had been sent. Past programming has shown
that even when given the option to pick up the cash any time, most people still do so very close to the actual
transfer date. Make sure to add questions to your PDM form to cover when they collected the funds, if they kept
any in the account as savings, etc.

Also review your M&E plan to identify your information needs for your PDM tools. By building the questions
directly from the indicators in your M&E plan, the questionnaire and data collection process will be more efficient.
Refer to Annex 20: PDM Monitoring Forms for more tools and templates.

The most common PDM tools used with participants are household (HH) surveys and focus group discussions (FGDs).

Household PDM surveys should follow sampling tip sheet recommendations from the MEL team.68 Typically, these
surveys collect two kinds of information: quality assurance/accountability data and data to measure progress on
the project’s performance monitoring indicators.

Household PDM surveys should be administered to a representative sample of program participants using
simple random selection (SRS) from the overall participant list.69 For more information on sampling, please refer
to the MEL Tip Sheet: Sampling70 and the MC Sample Size Calculator.71 As sample size determination can be
challenging, please reach out to the MEL Team for assistance.

If you are noticing trends that you do not understand from the data collected through HH and vendor surveys,
focus group discussions 72 (FDGs) are a great way to uncover explanations for those trends.

68 [Link]
69 Sometimes SRS is not possible, so a 2-stage cluster PPS sampling might be used instead.
70 [Link]
71 [Link]
00031-011-0-0utfZz-8-00&a=d&c=all&cl=search&d=HASH0e8e49f43b0fca2b15ae6f
72 MERL Team’s Tip Sheet #4: Conducting FDGs, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 53
ACTIVITY E: DISTRIBUTION
Checklist & Tools / Templates

Checkbox Main Steps Tool/Template Responsible

Establish Distribution Plan and Distribution Plan (Annex 13) Program
provide copies to Finance
and Operations
Create Cash Distribution Distribution Form (Annex 14 or 15) Program
Form (from the Participant
Registration List)
If service provider requires an Payment Request Program
advance: Distribution Plan (Annex 13) and Finance
Distribution Form (14 or 15)
Copies of contract and amendments

Prepare materials Program

for distribution site

Distribute cash (if directly Cash Distribution Form M&E Program

distributed by Mercy Corps) (Annex 14 or 15)
Monitor and support the Cash Distribution Monitoring Form Program
distribution (if working with a (Annex 16) Finance
service provider)
Return undistributed cash to Distribution Form (Annex 14 or 15),
Finance, if applicable completed and signed
Settle payment with service Payment Request Distribution Plan Program
provider (Annex 13) and Finance
Distribution Form (14 or 15)
Copies of contract and amendments
Adapt program processes PDM Monitoring Forms (Annex 20) Program
based up monitoring feedback

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 54
 Tom Van Cakenberghe for Mercy Corps

ACTIVITY F
End-of-Program Transitions
The careful planning and stakeholder management that you built throughout your program implementation have
laid the foundation for your program’s end. It is important to review your End-of-Program Plan at least 90 days
prior to your program’s end date. End-of-Program transitions are covered in detail in the Program Management
Manual.73 Specific guidance around ending a cash transfer program includes communicating the last distribution
date, collecting and sharing lessons learned, including service provider performance; and conducting a final
document check.

TIP Your final distribution should occur at least one month prior to your program’s end
date. This will allow you to reconcile distribution documents and pay final invoices to
your service provider, if applicable.

Communications Plan
Make sure that your End-of-Program Plan includes steps to communicate your program’s close-out with
participants, service providers, and other key stakeholders. Remind all groups of the final distribution date so they
can prepare for the transition. For all cash transfer programs, the final distribution date should be at least 30 days
prior to the end of the grant agreement. As an example, if the program end date is June 30, the final cash transfer
should take place before May 30.

Lessons Learned
For the benefit of future cash transfer programs­­—and their Program Managers!­­—please document the important
lessons you learned implementing your program. As much as possible, these should include an assessment of

73 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 55
partnerships (particularly cash-handling service providers) as well as an analysis of barriers and/or
opportunities that arose related to gender, safety, dignity, and inclusion of individuals with special needs.
Ideally, this information will have been collected and reported on throughout implementation and then compiled
into a Final Report. At a minimum, this Final Report should be shared with your region’s Senior Program Officer
and the MERG team.

TIP As part of your program close-out, enter your program information into the Cash
Atlas, a global database of cash transfer programs managed by the Cash Learning
Partnership (CaLP): [Link]

The MERG team also shares lessons learned through a Program Profile template. (Many past programs are
captured in Annex G in the CTP Methodology Guide.) To add to this growing body of information­­—or to model
your lessons learned document on this format­­—feel free to use the Program Profile template (Annex 21).

Prequalified Supplier Feedback

If you used a service provider from Mercy Corps’ pre-qualified supplier list, summarize their performance in
the pre-qualification folder under “References.” The Summary of Performance is documented and signed by
the Program Manager and budget holder who signed the contract. If the service provider failed to meet their
contractual obligations, escalate this issue to the PALM and MERG Teams. Both can review the pre-qualification to
ensure that performance is being monitored globally and that the pre-qualified supplier list is up-to-date.

Final Check on Documentation and Archiving

Program staff should check the description of deliverables and program documentation to ensure they are
completed and filed correctly. Page 35 of the Program Management Manual contains explicit instructions for
creating a description of deliverables. Mercy Corps’ Program Records and Archiving Policy 74 outlines the contents
of the Program File.

Record Keeping and Archiving­­—Section 7 of the Field Finance Manual 75­­—contains instructions on archiving
Finance documents.

MONITORING & EVALUATION

Final Evaluation
The Program Management Minimum Standard stipulates that final program evaluations must be carried out and
a report be made available. These evaluations can be very simple for smaller or less complex programs (e.g., a
documented endline study report only), or can be more detailed for larger or more complex programs (e.g., an
external impact and performance evaluation.) Evaluations can be internal or external, depending upon donor
requirements, available funding, internal capacity levels, objectives of the evaluation, and other circumstances.

74 Program Records Retention and Archiving Policy, MCDL, [Link]

75 Field Finance Manual, MCDL, [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 56
Almost all types of evaluations will involve an endline study, using the same tools as the baseline study to
compare results and determine to which changes the program has contributed. The choice of other evaluation
methods will depend on the type of program, the resources available, and the type of questions the evaluation
is trying to answer. In order for an evaluation to contribute to increased program quality, evaluation findings
should be clearly documented and circulated broadly within Mercy Corps and among other stakeholders,
as appropriate. The evaluation report should include a description of the evaluation methodology, findings,
recommendations, and lessons learned.

For additional information on final evaluations, see Tip Sheet #4: Conducting Final Evaluations of Cash Transfer
Programs, Annex G in the CTP Methodology Guide.76

ACTIVITY F: END-OF-PROGRAM TRANSITIONS

Checklist & Tools / Templates

Checkbox Main Steps Tool/Template Responsible

Review and update your End- Program
of-Program Plan
Conduct a final evaluation Evaluation SOW Template Program M&E
Guidelines on Evaluation Reports
Tip Sheet #4: Conducting Final Evaluations
of Cash Transfer Programs, CTP
Methodology Guide
Document lessons learned and Program Profile Template (Annex 21) Program
service provider performance PALM Pre-qualification Folder­­—“References”
Communicate final program Note to File (Annex 8) if changed; if Program
details with participants required, written approval from donor.

Ensure required documentation See Program Records Retention Policy Program

is appropriately filed for details Finance
Section 7, FFM

76 [Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 57
 CONTACT
ALEXA SWIFT
Early Economic Recovery Advisor |
Markets, Economic Recovery & Growth Team
aswift@[Link]

BREE OSWILL
Special Projects Advisor |
Markets, Economic Recovery & Growth Team
boswill@[Link]

About Mercy Corps

Mercy Corps is a leading global organization
powered by the belief that a better world is possible.
In disaster, in hardship, in more than 40 countries
around the world, we partner to put bold solutions into
action — helping people triumph over adversity and
build stronger communities from within.
Now, and for the future.

45 SW Ankeny Street
Portland, Oregon 97204
888.842.0842
[Link]

MERCY CORPS Cash Transfer Implementation Guide: Part of the Cash Transfer Programming Toolkit A 58