1. This document provides guidelines for implementing cash-based interventions during humanitarian assistance. It outlines assessment, planning, implementation and monitoring procedures. 2. Key points include conducting assessments of payment channels and organizational capacity, developing standard operating procedures and security plans, choosing appropriate payment methods, and monitoring projects for efficiency, effectiveness and security. 3. Cash-based interventions discussed include conditional and unconditional cash transfers, vouchers, and cash-for-work programs. Cash-for-work was implemented in Andhra Pradesh, India after floods to support livelihoods and provide short-term employment through tasks like constructing bunds and wells.

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SIMPLE GUIDELINES FOR IMPLEMENTING CASH BASED
INTERVENTIONS DURING HUMANITARIAN ASSISTANCE
ACKNOWLEDGEMENTS
This compilation is developed by Solomon Raj Gaddam through web search and referring to
different documents and field experiences gained while implementing the cash for work in ECHO
funded project - Humanitarian assistance programme implemented in erstwhile Andhrapradesh
state in India.
1. INTRODUCTION
Cash based interventions (CBIs) are evolved as alternatives or complements to in-kind assistance in
humanitarian relief efforts. The simple objective of this guidelines is to:
“Ensure maximum coverage and minimum damage or loss both in terms of human and
capital/assets with ensuring minimum standard procedures for project implementation”
The importanttypesof cash basedinterventionsare dividedinto3maincategories:
 INDIRECT TRANSFER PROCESS
 DIRECT TRANSFER PROCESS
 REIMBURSEMENT TRANSFER PROCESS
2. SPECIFIC TASKS WHILE SETTING UP A CASH BASED INTERVENTION
ASSESSMENT OF THE EXISTING PAYMENT
CHANNEL
ASSESSMENT REQUIRED AT ORGANIZATION
LEVEL
 Number and coverage of bank branches
 Number and coverage of ATMs
 Amount and number of various transfer fees
 Available remittance and microfinance
agents and systems
 No. Of People having Individual accounts
 Available government programmes using
regular cash transfers, e.g.: micro finance,
salary payments to remote areas, etc.
 Number available people and geographical
coverage
 Number of village covered by individual staff
 Number of additional People required
 Assessment of training requirements
 Assessing risk factors
3. KEYS POINTS FOR IMPLEMENTING CASH BASED INTEREVENTIONS
 From assessment to evaluation of the project, strong coordination between all stakeholders
is required.
 Preparation of an action plan and clarification of responsibilities is essential.
 Risk analysis/mapping is a must. Security risks for cash based interventions are context-
specific and can be minimized through good design, risk analysis and good project
management.
 As much as possible use a most accepted payment method only for paying cash
 The chosen payment method must be adapted to the security context. The security plan
can be updated taking into account the specificities of cash based interventions.
 The chosen payment method must be simple and suit the needs.
 Cash can be delivered through a wide range of mechanisms. However, each method has a
different impact on logistic, security and finance management.
 When requesting supplies, services and works related to CBIs, technical specifications must
be detailed and clear. Criteria for selection work/location must be specified.
 Clear financial procedures and supporting documentation must be defined to ensure that
cash can be traced throughout the project; justifying expenses and payments.
 Monitoring is a continuous process and must be done throughout the duration of the project

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implementation. It includes not only the efficiency and effectiveness of the programme but
also the security context, cash flow, respect of procurement procedures and project
objectives.
4. TYPES OF CASH BASED INTERVENTIONS
o Conditional cash transfers - Funding agency/ implementing organization puts conditions on
how cash is spent, for instance stipulating that it must be used to pay for the
reconstruction of the family home. Alternatively, cash might be given after recipients have
met a condition, such as enrolling children in school or having them vaccinated. There is no
requirement to pay back any money.
o Unconditional cash transfers - Recipients are given money as a direct grant with no
conditions or work requirement. There is no requirement to pay back any money, and
people are entitled to use the money according to their own needs as defined by the
household.
o VOUCHERS A voucher is a paper or electronic card that can be exchanged for a set quantity
or value of goods denominated either as a cash value (e.g. Rs150) or as predetermined
commodities or services (e.g. 5kg of maize/jowar/rice etc). Vouchers are redeemable with
preselected vendors/traders as identified
o CASH FOR WORK Payment (in cash or vouchers) is provided as a wage for work, usually in
public work or individual work schemes.
5. MAIN SECURITY TOOLS - THE SECURITY PLAN
As soon as the Risk Analysis Table (RAT) is prepared, the Security Plan must be updated taking
into account the specificities of the proposed cash based intervention. The Security Plan must
contain:
—STANDARD OPERATING PROCEDURES (SOP): A specific SOP must be developed for all cash based
interventions, but especially when using a direct transfer process. This document should describe in
detail the routine security procedures to be followed. The following provide an example of those to
be included:
 Road Movements
 Contacts (movements, security, daily contact) Use of equipment Blackout procedure
Incident management
—MINIMUM OPERATING SECURITY STANDARDS (MOSS): The MOSS defines what the minimum
acceptable security standard is to be able to run the intervention safely. This document must be
updated according to the specific contextualized SOPs developed.
6. WHY CASH FOR WORK IMPLEMENTED IN ANDHRA PRADESH?
After the floods in Andhra Pradesh during 2012, Implementing CFW is to help re-establish and
support livelihoods and to provide short-term labour opportunities for the benefit of IDP
community. While the financial resources provided by CfW program are short-term in nature, the
positive results reached far beyond the end of program activities. Employment opportunities
generated by CfW programming enable many individuals who would otherwise be forced into food
insecurity resulting into malnutrition, ill health and migration by emergency. For detailed
information about the impact of floods, refer to published article http://www.eajournals.org/wp-
content/uploads/Impact-of-floods-on-food-security-and-livelihoods-of-IDP-Tribal-
Households.pdf
Bunding, Wells, Shed are the three types of work that is implemented. Through Cash-for-Work is
implemented to assistance is not only intended to supply required food supplies to household level
through providing wage. Cash-for-Work served as a powerful instrument for positive change in the

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context household food security and access to food during the post floods situation. The following
table outlines the advantages and disadvantages of CfW for the beneficiaries, the implementing
team, and the local population.
7. IMPLEMENTATION PROCESS OF CASH FOR WORK IN AP
Sl
no
Stage Process Indicator
1 Village levelMeeting SharingSanctionDetails ; Beneficiary
Selection throughCommittees ;
Laying Norms
Deciding PaymentMode
Selectionof Sites
Formationof work groups
. Budgetsanctionetc
Village level
minutes
2 Marking withtechnical
team
WithSelectedBeneficiarieslist
marking
Photos and Activity
List
3 Distributionof JobCards CC will Prepare beneficiarywise Job
card
Cards
4 Work execution CC will MonitorDayto day Physical
workstatus
Musters
5 Preparationof Payment
sheet
For a weekCCwill prepare a
Paymentsheet alongwithMuster
Paymentsheetand
minutes
6 Village meeting WithThe Paymentsheetinmeeting
theywill prepare arequestfor
paymentstoAccountssectionat
Office
Minutes
7 Basedon Minutesand
Mustersand paymentsheet
, Preparationof Beneficiary
wise Payment
At office level Vouchersand
Documents
8 DepositinPostoffice
throughMoneyorder
At Office level Postal Receipt
fromPost office
9 PaymentsmedbyPostal
departmentatFieldlevel
Concernedpostmanwill payamount
to beneficiary
Postal Receipts
10 Paymentreceiptswill
reachedto Office
Receiptswill come bypostthrough
postal department
Beneficiarysinged
postal receipts
11 activityCompletion CC will ,monitorandgive completion
reportwithminutesandPhotos,
CheckedbyPC,
Photos
Moneyorder
receipts
8. SPECIFIC CIRCUMSTANCES WHAT TO DO

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To reduce complaints, and threats and dangerous behaviors, minimize the loss in terms of both
physical and human assets certain actions needs to be taken up. The principal is that the
community must be well informed about and involved in the programme. Transparent targeting can
help reduce tensions between recipients and non-recipients. The community should be involved in
ensuring security for implementation teams.
The community can support the programme, needs to understand the consequences of any security
incident during and after distribution of assistance, in cash as in-kind.
Implementation of mitigation measures should follow the analysis of security risks. Rules needs to l
be adapted to the context and intervention, and some important points and measures mentioned
below can be considered according to the situation and the payment method used.
Specific Condition/ Security
Risk
At What stage What to do
Threat Targeting Ensure Transparent targeting
Ensure participation of the target community
Theft
At distribution state Increase community involvement
Avoid routine movement
Consider using indirect transfer process
If impossible, increase community involvement
Avoid routine movement
Looting and Riot
At distribution state ensure items/foodstuffs availability in sufficient
quantities
Use standard report form to prompt with information
If possible, you should keep witnesses present or take
their names and addresses so they can be contacted
later.
Abuse of Power/influence
At targeting stage Transparent targeting and avoid duplication
registration
Inclusion of women and people with special needs is a
must
Lack of required staff
At any stage Have Recruitment policy and implement it.
No hasty recruitment of personnel
No shortcuts in recruitment process
Have incentive mechanism in place
Death of staff member
At any stage Ensure proper agreement/TOR
Risk mapping
Ensure all the non programme/ project
based/casual/consultants are insured without fail.
Abduction (staff)
At any stage Have proper induction procedures in place
Have Risk mapping in place
Have MOSS in place
Inform authorities and If appropriate, notify the police
as soon as possible
Missing of Project staff
At any stage Have SOP and MOSS in place
Involve the target community in search
Inform authorities and If appropriate, notify the police
as soon as possible
9. COMMON ITEMS FOR VARIOUS TRANSFER PROCESSES
According to the project design these items might be needed:
 Village level meeting minutes
 Recipient identification cards
 Training materials
 Visibility materials
 Distribution and signature lists

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 Receipts of payment
For cash for work programme, tools, materials or any others necessary items for the project should
be ordered.
Apart from having standard operating procedures (SOP) it is equally important to have a local
Minimum Operating Security Standards (MOSS). Consider the need of additional equipment to insure
security for staff and implementation, e.g. a VHF radio, satellite phone, etc.
In case of extreme remote areas where mobile coverage also does not exists, it might be
worthwhile to explore “human -courier” system. In areas prone to floods, it is essential to have a
jacket or inflatable material.
10. TRANSFER SERVICE PROVIDER VS PAYMENT METHODS
While choosing an indirect transfer process, it is important to decide on the transfer service
provider. Transfer service providers include:
 Governments
 Banks
 Post offices
 Micro-finance companies
 Remittances companies
 Security companies
 Local traders
Delivery of cash can be done through a range of payment methods and by using various third
parties. The table below shows the ways in which different payment methods can be used in
combination with different transfer service providers.
Note: When making the choice of using an external transfer service provider, ensure that providers
understand the objectives and activities and that they are clearly stated in the contract or letter of
agreement.
TRANSFER SERVICE PAYMENT METHOD
PROVIDER
Cheque Electronic
Cards/
E-Vouchers
Paper
Voucher
Mobile
technology
Bank
Transfer
Cash in
Envelope
Money
Order
LOCAL NGO PARTNER X X X
GOVERNMENT X X X X
BANK X X X
POST OFFICE X
MICROFINANCE COMPANY X X X
SECURITY COMPANY X
LOCAL TRADER X X X
LOCAL REMITTANCE INSTITUTION X X X X
11. CONCLUSION
Implementing cash based interventions may create security risks for implementing staff and the
target population. This is due to the attractiveness of cash which may also make it more difficult to
target the most vulnerable groups in the population and can increase the risks of corrupt diversion
and potential interest by third parties. However, in-kind distributions also have risks exposing the
implementing team and recipients to increased insecurity, and hence cash may be a preferred
option as it will be less visible. The risks of cash compared to in-kind alternatives are different and
context-specific, and need to be carefully evaluated before making a judgment.

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Direct transfer is considered the most risky process though may still be the most relevant
approach in certain contexts. The risks for cash and vouchers can be minimized through
appropriate programme design, including risk analysis, and good project management.
Contact:
Dr.Solomon Raj Gaddam
e-mail: haigsr@gmail.com
cell: +919848782820