The following two sections - I.4 & I.5 - provide detailed guidelines for MNGOs and FNGOs in terms of Procedural and Process Guidelines. Procedural Guidelines spell out the criteria that applicant NGOs must fulfill in order to apply for funding. Process Guidelines spell out the processes involved in selection, sanction and monitoring of projects.

Procedural Guidelines for submission of Application:

Eligibility Criteria-

NGOs applying for MNGO status must fulfill the following eligibility criteria. The criteria have been grouped into four sections. These are criteria for Registration, Experience, Assets and Jurisdiction.

Registration-

• NGO should be registered under the Indian Societies Registration Act/ Indian    Trust    Act/ Indian Religious and Charitable Act /Company Act or their State    counterparts    for more than three years.

• NGOs applying for MNGO status in State other than that of its registration,    should    have State specific chapters registered. Alternatively, branches    affiliated to a    National level Federation/ Organization can be registered with    the parent body.

Experience-

• Proven experience of working for three years in Health & Family Welfare, and    the    social sector (eg. education, women's empowerment, rural development).

• Implemented preferably a field project in Health or Reproductive and Child    Health    (RCH).

• Scale of operation during the previous three years should be comparable to    the    funding sought.

• Field presence for at least two years in the district for which the NGO is seeking    MNGO status.

• Experience in capacity building, organizing training in health/RCH, gender and    other    social sectors is preferred.

• An NGO blacklisted or placed under funding restriction by any Ministry or    Department of the Government of India (GOI), State Government or CAPART is    not    eligible for applying under the scheme.

Assets-

• Minimum fixed assets of Rs 2 lakhs in the name of the NGO, in the form of land    and/    or building. This should be reflected in the latest audited balance sheet    of the NGO    and should be retained during the length of the

• Office premises in the district where it wants to operate.

Jurisdiction-

• Each MNGO is allotted only two districts to work.

• Only one MNGO can work in a district.

• Preference is given to NGOs, which seek to cover unserved and underserved    areas    in the district. The NGO identifies these areas in consultation with the    District RCH    Officer.

• NGOs who wish to apply for the MNGO status must fulfill the eligibility criteria as    mentioned above. A transparent and participatory process of selection is    followed    for identifying suitable NGOs for implementing projects under the    Scheme.

Process Guidelines for Selection, Funds Release and Monitoring:

Below are the guidelines for a stepwise selection of MNGOs.

Selection Process of MNGOs-

1. Advertisement is given in two leading State level daily newspapers for the un-    allotted/ surrendered districts (under the MNGO Scheme).

2.Completed applications (See Part 4 for Format and Checklist) are received at    the    office of the Regional Director (RD) Health Services

3.The office of the RD conducts desk review based on checklist. (See Part 4 for    Checklist

4.GoI is informed of the status of applications received till the cut off date by the    office of the RD. This is copied to the State Government.

5.A meeting of the State NGO Committee is convened normally within one month.    The findings of the desk review are discussed here. The committee identifies    NGOs    that have fulfilled the eligibility criteria.

6.The State NGO Committee informs rejected applicants. This is copied to GoI &    State Government.

7.A field appraisal of all eligible applicant NGOs is conducted by the RRCs within a    defined time frame. (See Part 4 for Format)

The field appraisal reports of all eligible applicant NGOs are tabled at the meeting of the State NGO committee. The presence of GOI representative, RD and State NGO Coordinator in this committee is mandatory. The RRC and Director (FW) are also members of the Committee.

1. The State NGO committee selects one MNGO per district. The GoI is informed     accordingly.

2. Selected MNGOs go through induction training within 4-6 weeks of selection by     the RRCs. The focus of the orientation is on the relevant aspects including     management (technical and financial) of the MNGO scheme. (See Part 4 for     Checklist)

3. Following the induction training, the MNGOs use their skills for identifying     suitable FNGOs in the unserved and underserved areas (See Part 4 for     Checklist). The MNGO is expected to use the initial grant of Rs 1 lakh during     this preparatory phase. The MNGO identifies FNGOs in consultation with the     District RCH Society (See FNGO selection process).

4. Within four weeks of completing the selection of FNGOs, the MNGO is expected     to develop a consolidated project proposal based on the collected data and     the indicators from the FNGO proposals.

5. The MNGO's consolidated proposal is then placed for consideration of District     NGO Committee, which communicates the recommendation to the state RCH     Society. The state RCH society places the final recommendation to GOI for the     approval of GIAC and release of grants to the state RCH society.

6. The selected MNGO signs a Memorandum of Understanding (MOU) with the     District RCH Society.

7. Copy of the signed MOU is sent to the State RCH Society for release of funds.     A copy is sent to GoI and RRCs for information.

Duration of Grant-

The MNGO is sanctioned a project for a period of three years. Retention of the MNGO status is based on the evaluation, which is to be conducted at the end of Year One and Year Three.

Fund flow-

The flow of funds is from the GoI to the State RCH Society. The State RCH Society is responsible for release of funds to the MNGOs.

GOI to State RCH Society-

• GoI releases the 1st installment to the State RCH Society for each district     allocated    under the MNGO scheme. This is done in the first quarter of the     financial year.

• Release of the 2nd installment is based on request from State RCH Society.

State RCH Society to MNGO-

• State RCH society releases a grant of Rs.1 lakh for the preparatory phase to     the MNGO. This is primarily for conducting Community Needs Assessment     /base line survey, identification of FNGOs, orientation of FNGOs, getting FNGO     proposal and preparing a consolidated proposal with indicators for     submission. If found required, some parts of the fund may be used for     nurturing/preparing SHGs/youth groups who could eventually become FNGOs.

• MNGOs get an annual allotment of approximately Rs.5 -15 lakhs per district.     The budget is based on the number of FNGOs (to whom the grants will be     given by the MNGOs) and the nature of the proposed interventions.

• MNGOs are allowed to retain 20 % of the total project cost (i.e. Rs. 5 - 15     lakhs). This is in the range of Rs. 1 - 3 lakhs for administrative cost, which     includes capacity building cost.

• A non- recurring grant of a maximum of Rs 1.5 lakhs is permitted for purchase    of assets during the first 6 months of the project. This expenditure is allowed    as a one-time expenditure in the life of the project for clinical equipment and    training materials as required by the project. Office equipment can include    office furniture such as, table, chairs, storage, cabinets, computer, printer.

• An emergency-rolling fund of Rs 1 lakh can be made available to the MNGO to    meet exigencies such as non-receipt of drugs, vaccines and contraceptives.    This is however subject to a no objection certificate from the District RCH    Officer.

• On receipt of the Sanction letter and signed MOU from the District RCH Society,    the State RCH Society releases grants to the MNGO in the following stages:

- 1st release - for a period of 18 months

- 2nd release- next 16 months and based on favorable evaluation report by the    empanelled evaluating agency and utilization certificate (UC) for the first 12    months or the end of the financial year, whichever is earlier .

- 3rd release**- the final grant of 2 months is released on receiving all    completed UC and audited statement of accounts along with project    completion report.

The MNGO claims reimbursement of the last installment after submission of the final reports.

• In order to facilitate project continuation, the release of funds will not be totally    stopped on account of non submission of UCs by one or two FNGOs with valid    reasons (e.g: natural calamities).In such cases, the fund will be released    proportionately for those FNGOs who have submitted the UCs, and the MNGO    is required to submit the UCs for the complete project before the end of the    financial year.

• In case of default, no further grant will be released. The state RCH society    evaluates the performance and if there is violation of any norms, blacklists the    NGO.

Monitoring-

• A system of periodic reporting and ongoing monitoring is in place for assessing    the    NGO's performance.

• The MNGO submits reports (financial and performance) every quarter to the    State    NGO Coordinator & District RCH Society.

• The MNGO monitors the work of FNGOs on a monthly basis, and also    undertakes    field visits & review meetings as per appropriate checklist.

• It is mandatory for the State RCH Society to have half yearly review meetings    in    which the District RCH Society is also be represented. The MNGOs makes a    presentation to the State RCH Society on their performance (project &    financial),    during the period based on the activity plan for the year.

• The State NGO coordinator shares the half yearly reports of the MNGOs with    the    RRCs, to identify areas requiring technical inputs.

Performance Indicators-

Retention of MNGO grant and the funds release is based on performance of the NGO.

• The MNGO clearly identifies output and measurable indicators at the project    proposal stage. The MNGO also encourages the FNGO to identify these when    the FNGO submits its proposals to the MNGO. These are to be identified in    consultation with the corresponding tier of Family Welfare Administration and    related sectors of Social Development.

• The MNGO supports the FNGO to conduct a baseline survey before the    commencement of any activity in the project area. An end line survey is also to    be conducted to assess the improvements in service delivery in a given area of    intervention.

• The MNGO must be able to demonstrate qualitative and quantitative    improvement in meeting the RCH needs of the community in the project area.

• The MNGO assesses progress of FNGO against a cluster of service delivery    indicators selected by the FNGOs. The progress of the MNGO is in turn    assessed based on the indicators spelt out by it in its consolidated proposal.

Evaluation-

• The MNGO performance is evaluated at the end of Year One and Year Three by    an    external evaluating agency.

• The State RCH Society commissions the Evaluation.

Reporting:

• The MNGO submits six monthly reports to the State RCH society with copies to    the    District RCH Society.

• The State RCH Society shares the 6 monthly reports with Regional Resource    Centres and the GOI.

• The Utilization certificates for the funds are submitted by the states to GOI

• At the end of the project, the MNGO submits a project completion report to the    State RCH Society.

Application Criteria-MNGO-

• Mandatory Reg. Criteria- three years

• Proven experience in HFW,& other social sectors

• Experience of at least two years in chosen district

• Turnover in past three years equivalent to budget request; Minimum fixed    assets of    Rs. 2 lakhs.   

• Experience in capacity building, gender, other social sectors

• Office premises in chosen district;

• Only two districts/MNGO

• NGOs blacklisted by any Ministry, Dept., not eligible