How to assess Your NGO using the USAID’s

Organizational Capacity Assessment (OCA) Tool

About the Author

Dr. Saumya Arora is a development professional with cross

disciplinary experience in project management and execution at
the grassroots level; resource mobilization and fundraising,
donor relationship management, capacity building of non-
government organizations and community based organizations.
She has been successful in raising funds from a wide range of
national and international donors, and possesses in-depth
knowledge of the fundraising and resource context for
developing countries.
Contents

1. Introduction: ........................................................................................................................... 4

2. Why use an OCA tool? ............................................................................................................. 5

3. The Process: ............................................................................................................................. 5

4. Preparation for an Organizational Capacity Assessment: ....................................................... 7

4.1. Preparation Check-List: .................................................................................................... 7
4.2. Key considerations:........................................................................................................... 7
4.3. Documents for the OCA: ................................................................................................... 8
4.4. Other important steps: ................................................................................................... 10

5. How to use the OCA tool? ..................................................................................................... 11

5.1. Discussion: ...................................................................................................................... 12
5.2. Scoring: ........................................................................................................................... 13
5.3. Documentation and verification: ................................................................................... 15

6. The Post-OCA Action Plan:..................................................................................................... 16

Limitations of the OCA tool: ...................................................................................................... 17

Annexure: The OCA Tool ............................................................................................................... 17

Assessing Your NGO using the USAID’s Organizational Capacity Assessment Tool

There are many frameworks and tools designed for organizational capacity assessment. This
e-book provides a detailed guide on using one such tool as a standard framework- the
Organizational Capacity Assessment tool of USAID. This tool was developed by USAID for the
NGOs receiving direct funding for USAID programs. However, it can be modified and used by
any organization that wishes to gauge its own capacities, to identify areas for improvement
and to create a sound action plan based on the identified priority areas.

1. Introduction:
[[

A systematic, structured and in-depth self-assessment of an organization can go a long way in

making it more effective and sustainable. A process of organizational assessment helps in
gauging the capacities across various areas; and presenting the organizational improvement
areas, means and methods along the way or as a result. In this e-book, we take you through a
detailed process of using an Organizational Capacity Assessment (OCA) tool.

The Organizational Capacity Assessment (OCA) Tool of USAID is a structured tool to help the
organizations conduct a facilitated self-assessment of its own capacity, followed by systematic
planning and capacity improvements (USAID)1. The most effective feature of the tool is that it
relies on a self-assessment approach. A participatory approach and self-assessment of an
organization by its own staff and board members ensures complete ownership of the action
plan developed as an outcome. All the resources about how to use the tool, the facilitator guide
and many more are available on the USAID learning lab for the implementing partners.
However, in this book, you will learn the basics about the OCA tool- the preparation needed for
the tool implementation, essence of the tool, key considerations for its usage and tips on
maximizing its benefits for your organization.

1 https://usaidlearninglab.org/library/organizational-capacity-assessment
 2. Why use an OCA tool?

An organizational assessment exercise serves various purposes and it should be conducted on a

timely basis in order to strengthen organizational capacities. It is important to bear in mind that
an honest, in-depth, systematic and strategic analysis and discussion are more important than
the ‘resultant score’ of such an assessment process. An OCA tool can catalyze your
organizational effectiveness and capacity building efforts in the following ways:
- A detailed discussion and analysis of the organization’s processes and functions enables the
organization in detecting the capacity gaps across them
- Helps in identification of the strengths and weaknesses of the organization
- It helps in identifying the targeted ‘needs’ of the organization, thereby helping in
articulation of ‘what’ (input/s) is/ are actually needed to strengthen its capacities
- It has the capacity to bring multiple viewpoints to the table, stimulating productive
discussions among the staff/ board members about the organization
- Once identified, the results guide in creating ideal ‘action plans’ to bridge the gaps
- Regular monitoring, evaluation and reassessment can be planned accordingly to ensure
strengthened capacities in long term, using the first assessment as a ‘baseline’
- If conducted in a systematic and regular manner, this process of self-assessment
substantiates and documents the organizational improvement over time.

3. The Process:

The basic process of usage of an OCA tool involves the following steps:
- Self-assessment and reflection on various processes and functions
- Scoring the organization on these processes and functions against benchmarks
- Calculating the overall score
- Prioritizing capacity strengthening areas and actions based on the results and discussions
- Creating a detailed action plan based on priorities
- Regular assessments and monitoring as per the action plan to gauge success.
An organizational assessment exercise must be conducted by an organization annually or
before any capacity development exercise. This would entail the following steps in the form of a
cycle:

Identification of
Re- Gaps/ Needs
assessment based on OCA
tool

Implementation of Prioritization of
Action Plan action areas

Develop-
ment of an
Action Plan

Figure 1: OCA Implementation Process

The OCA tool is designed to assess an organization’s technical capacity in seven domains:
1. Governance and Leadership
2. Administration
3. Human Resources
4. Financial Management
5. Organizational Management
6. Program Management
7. Project Performance Management

Each domain covers a number of sub-areas in the tool. It is important to understand that the
tool and its sections act as a framework to guide an organization to reflect and gauge its
capacity under each section. Given that, the tool is not a blueprint and the success of the
exercise would depend not only on the tool, rather on the effectiveness, transparency, honesty
of the discussion and facilitation. ‘How’ the tool is implemented plays a key role. Self-
assessment ensures the ownership is taken by the organization itself, but the role of facilitator
cannot be undermined. An effective facilitator would guide the process towards transparency
and open discussions, resulting in productive analysis and strategic reflections into every
processes and function of the organization.

4. Preparation for an Organizational Capacity Assessment:

Before delving into a detailed Organizational Capacity Assessment (OCA) for your NGO, it is
important to prepare yourself for this intensive process. If done properly, this process may take
weeks and might stretch even longer if you are not prepared with the documents, evidence,
staff availability, etc. Do take at least 4 to 6 weeks to prepare your NGO before the OCA begins.

4.1. Preparation Check-List:

Here is a sample check-list of preparatory things required for OCA:

Check list item Response (Yes/ No)

Aims and objectives of the OCA articulated
Timeline for the OCA
Staff members to participate in the OCA
Board members to participate in the OCA
List of documents for each section(See 4.3.)

4.2. Key considerations:

Here are some things to consider before starting the OCA process:
- Being a participatory process, a fair and equal representation of the board members and
staff members from each level is recommended for an ideal outcome of the exercise.
- Suggested ratio would be- 1/3rd participants from senior management, 1/3rd from middle
management and 1/3rd from junior level.
- There is no ideal group size for the exercise. However, a group of 10-12 members would be
best to manage the discussions and to ensure contribution from all participants.
- Group representation- ideally, includes one participant each from different functions in
your NGO- e.g. Programme, Monitoring and Evaluation, Human Resources, Finance,
Fundraising, and so on. Please make sure that the board/ governing body is also adequately
represented in the OCA discussion group.
- Once the OCA discussion group is finalized, inform each participant well in advance asking
for their availability. It would be nice to have a schedule and timeline for them so that they
are aware of the time commitment required from them and can manage their workload
accordingly.

4.3. Documents for the OCA:

Honesty and transparency are key to any discussion. However, assuming the best intentions of
everyone involved in the discussion, OCA mostly remains an exercise based on ‘subjectivity and
viewpoints’ of the various participants. To ensure that every score is given with honesty,
transparency and with most logical explanation, the facilitator must request ‘evidence’ from the
NGO about each response rather than taking the word for it. It helps in verification, objective
scoring, triangulation and documentation.

Even if some of the documents are not available in the form requested, it gives your NGO an
opportunity to prepare such documentation for the record that would be useful in future too.

Here is a tentative check-list of documents to be prepared for OCA:

Domain Type of document Response (Yes/ No)
Governance - Vision and Mission Statements
and Leadership - Registration status/ certificate
- Board membership, board meetings schedule
and minutes of the meetings
- Second line leadership plan/ Succession plan

Administration - Administrative records and policies

- Travel policy and manual, related payment
vouchers if possible
- Procurement plan, procurement policies and
 files, related payment vouchers if possible
- Fixed asset policies, files, reports and related
documents
- Information system policies, procedures,
vendor vouchers if available and possible

Human - Staff and personnel files and CVs

Resources - Job descriptions with time allocation
- Sample staff contracts
- HR plans and policies
- Performance improvement plans for staff
- Performance appraisal processes, samples of
completed forms or blank forms
- HR benefits manual and guidelines
- Leave policies
- Reimbursement policies
- Staff time records, work schedule policies,
attendance information
- Salary structure and bands
- Recruitment policies and guidelines
- Selection criteria- qualifications, background,
skills, experience, etc.
- Turnover data, retention policies
- Volunteer/ internship policies and processes

Financial - Finance policies and processes

Management - Accounting journals
- Payment vouchers if available and possible
- Audited financial statements (quarterly/
annual)
- Post-audit management plans
- Organization’s budget, individual project
budgets, budget trackers
- Donor financial reports, grant agreements,
etc.

Organizational - Strategic plan

Management - Funding strategy/ Resource mobilization
strategy and timelines
 - Operational plans
- Communication strategy and timelines,
samples of communication material
- Policy review plans and timelines
- List of key stakeholders
- Associations and linkages

Program - Programs master document- or

Management plans/policy/design documents/proposals
- Program timelines
- Technical reports
- Community mobilization plans, local context
and community assessment plans and related
documents

Project - Standard Operating Manuals

Performance - Field plans, policies and procedures
Management - Field meeting reports and minutes, trip
reports
- Field supervision reports and processes
- Monitoring and Evaluation plans (M&E)
- Logic model and list of indicators for the
projects
- Data collection tools (surveys, interview
sheets, group discussion pointers and reports)

4.4. Other important steps:

Once you have complied and reviewed all the above documents and are ready for the OCA,
please make sure that you complete these final steps at the end of your preparatory phase:
- Planning the complete OCA exercise with timelines.
- Planning for the meetings and allocation of responsibilities.
- Sending out official invites and emails to all participants, facilitators and guests (if any).
- Logistical arrangements as needed (travel or commute, lodging, refreshments, etc.).
 - Pre-OCA meeting and discussions with the facilitator to understand what it would entail
and what else can be prepared beforehand to make it an efficient and productive
process.
- Agreeing on the role of the facilitator.
If you have reached this stage, congratulations! You are now ready for a transformative process
for your NGO. Let’s take the deep dive, aiming towards a better organization.

5. How to use the OCA tool?

The tool is very simple to use and is designed to be administered by a facilitator. You can use
the tool for your NGO having one or two external facilitator/s, who can drive a discussion,
knows enough about the organization and the objective of the OCA, can make informed and
fair decisions in view of the varying and numerous opinions and views expressed in the
discussion forum. The role of the facilitator/s:
- To guide the discussion in a participatory group setting.
- To ask probing and follow-up questions.
- To ask for evidence and supporting documentation for each score.
- To take every view into account before arriving to a conclusive scoring on each domain
and sub-section.
- To document the discussion and viewpoints and to aid the organization in planning too.

The entire process has to be discursive and participatory. The facilitator is expected to explain
the tool and the process in detail right in the beginning. (Please see the complete facilitator’s
guide available on USAID resources). Each domain should be explained with its various sub-
sections. The participants have to score the organization on each sub-section of the OCA tool
and have to discuss the scoring to arrive at an agreed score by all participants. The facilitator
will ask probing questions to justify the scoring and might have to look at the supporting
evidence and documentation to verify the information shared. If an external facilitator is not
available due to any reason, you can administer the tool with an ‘internal’ facilitator too. Try to
think of a person who fits in the role of a fair, non-biased and effective facilitator
whounderstands the objective of the exercise and is well versed with the goals and functioning
of the organization. Such a person can also act as a facilitator for the OCA exercise. The
administration of OCA tool will entail the following steps:
1. Discussion on each sub-section of each domain for the organization.
2. Agreeing on a score for each.
3. Documentation and verification.

5.1. Discussion:

As explained in the previous sections, discussion is the most important element of this exercise.
Ensure that the discussion and expression of opinion is encouraged. Ensure good orientation
session before the real OCA discussion so that the senior staff are encouraged to hear from the
junior staff, and the junior staff feels comfortable and free to express their opinion about any
aspect. Multiplicity of views is good to have a productive discussion. Discuss the objectives in
detail before embarking on this exercise so that everyone understands the larger perspective
and the overall goal of the exercise rather than feeling uncomfortable about discussion and
scoring of their respective departments/domains.

Tips for effective discussions:

- Prepare handouts for each participant that contains the print out of the entire OCA tool.
- Insert the OCA tool into a Google Sheet/ Excel Sheet format and use a projector to display
in the meeting room where you plan to hold the OCA tool discussion meeting.
- If possible, use a medium-sized room (neither too big nor too small for a group of 10-12
participants) and use a roundtable for the discussions.
- Make sure that the planning is done in such a manner that there is ample time for
discussion and to hear out everyone’s views rather than rushing to decide on the scoring.
- Having ample of time is good, but maintains a time cap for each domain to avoid fatigue or
loss of interest and to maintain same energy levels and equal contributions in each domain
discussion.
- If everyone does not agree to one score, come up with a way to move ahead- e.g. having a
percentage of participants (majority or 2/3rd of the group) to agree to finalize the score.

5.2. Scoring:

The OCA tool requires scoring by the collective group for a self-assessment of an organization.
However, the ‘scoring’ aspect might make some of the participants uncomfortable, as if it starts
appearing as a review of their work. Therefore, it is key to have everyone on the same page- to
realize that the exercise is for overall betterment of the organization, by aiming to move the
organization from one score to higher score in subsequent times.It will be helpful to look at the
‘score’ in terms of the ‘stage’ an organization is at. So, the scores are not to judge any
department or domain and determining the current stage of the domain will guide you in
making prioritized action plan to move it to the next stage. The sample OCA tool scoring
template2 is as follows (the detailed tool is in the annexure):

Domain/ Section Sub-Section OCA Score

1. Governance 1.1 Vision and mission
and legal 1.2 Legal requirements and status
structure 1.3 Organizational structure
1.4 Board composition and responsibility
1.5 Succession planning
Average section 1 score
2. Financial 2.1 Budgeting
management and 2.2 Accounting system
internal control 2.3 Internal controls
systems 2.4 Bank account management
2.5 Financial documentation
2.6 Financial statements and reporting
2.7 Audit experience
2.8 Cost sharing

2https://usaidlearninglab.org/library/organizational-capacity-assessment
 Average section 2 score
3. Administration 3.1 Operating policies, procedures, and systems
and procurement 3.2 Information technology
systems 3.3 Travel policies and procedures
3.4 Procurement
3.5 Fixed assets management
3.6 Branding and marking
Average section 3 score
4. Human 4.1 Adequacy of staffing and job descriptions
resources 4.2 Recruitment and retention
systems 4.3 Personnel policies
4.4 Staff time management and payrolls
4.5 Staff and consultant history
4.6 Staff salaries and benefits
4.7 Staff and contractor supervision and work planning
4.8 Volunteers and interns
Average section 4 score
5. Program 5.1 Donor compliance requirements
management 5.2 Sub-award management
5.3 Technical reporting
5.4 Stakeholder involvement
5.5 Culture and gender issues
Average section 5 score
6. Project 6.1 Monitoring and quality assurance
performance 6.2 Project and program evaluation
management 6.3 Service delivery standards
6.4 Field support, operations, and oversight
6.5 Project performance
Average section 6 score
7. Organizational 7.1 Strategic planning
management and 7.2 Annual work plans
sustainability 7.3 Change management
7.4 Knowledge management and external linkages
7.5 Fundraising and new business development
7.6 Internal communications and decision making
 7.7 External communications
7.8 Advocacy and influence
Average section 7 score
Average OCA score (average of the seven section scores)

If any sub-section of a domain deems irrelevant for the context of your NGO, leave that and
make a note about why it was left blank. For using the OCA tool for subsequent years, add
more columns to the right and write OCA score 1, OCA score 2 and so on. This will help in
comparing how the scores might have changed over time for various domains and sub-sections.

5.3. Documentation and verification:

The scores derived from discussions and agreements are important but not as important as the
discussion itself. The facilitator will take notes on how each of the score was agreed, the
explanations given and the verification and supporting evidence presented for each. Based on
these notes, you can review the entire narrative that presents itself at the end of the OCA
exercise. It will also help you in reviewing the results, reflecting on the issues, identifying the
key action areas and in prioritizing the action points- overall, helping you to create an action
plan.

Tips for better documentation:

- While using the Google Sheet for discussion on OCA tool, insert columns (or comments)
where needed to add relevant notes. This helps in recording all viewpoints while
maintaining complete transparency,
- If that is not possible, agree on the reasoning for scoring by the discussion group and note
the same. Read the notes out loud at the end of one domain discussion.
 6. The Post-OCA Action Plan:

When the OCA tool discussion is over, the real work begins. Now you have a comprehensive
analysis of each domain of your NGO at hand, with all the issues documented and recorded. It is
time for swinging back in action – by creating an Action Plan for your NGO. While discussing the
score for each sub-section for your NGO, you will have a list of issues at hand. Ideas and
suggestions around action steps will also come up. E.g. your NGO lacks capacities and resources
around fundraising- needs technical support and new resources for fundraising. However, funds
are running low this year so you have to manage your fundraising with existing resources.
Solution/ Priority action- using communication/ marketing staff to drive efforts around
fundraising.

In this way, there might be many competing priorities and you might have to make decisions
keeping all these factors in mind. Using the tool and collective discussions, you can build on the
suggested actions, define the needs, timelines and allocated responsibilities for each task. If this
OCA exercise is done at regular intervals, it has huge potential to lead your NGO towards
excellence- by identifying issues, creating action plans and driving progress one step at a time.
This covers all the key domains of your NGO, and hence is a broad strategic plan in a way. Here
is a sample template that you can use for creating and documenting an action plan and
progress along the domains/ sub-sections over time:

Domai Sub- Actions Needed Start End Respon Inputs Status as

n section Date Date -sible Needed from on (Date)
Person other
/ Team Departments
E.g. Success Succession plan 15 15 CEO, Inputs
Gover ion not in place for Marc April Board welcome, not
nance Plannin CEO- To prepare h 2020 mandatory
g a succession plan 2020
and get approved
by the Board
You can add columns as needed, e.g. to decide on or to rank the priority areas, or to review the
status time-to-time. This plan document must be a live document that can be reviewed and
edited as and when needed.

Limitations of the OCA tool:

Despite having many advantages, there are some limitations to the tool too. It is important to
bear in mind that the tool is merely a framework that helps in putting the issues, capacities,
strengths and weaknesses on paper in terms of numerical values. At the same time, the essence
lies not in the numerical values, rather in the discussions, opportunities to listen to staff
members from different departments employed at different levels and to examine why and
how perspectives and opinions are shaped and whether they are in line with the evidence and
documentation. The tool administration and facilitation play a key role in dealing with the
apparent subjectivity of the tool.

Therefore, the tool must be used with discretion, due consideration of the important factors
and elements like facilitation, honesty, transparency and open-ness of the discussions to
maximize its potential in shaping your NGO’s future capacities.
 Annexure: The OCA Tool3

Please find the complete OCA Tool structure in detail below. In case any section is irrelevant, you can modify or leave that section as
per the context of your NGO.

1. Governance

The ‘Governance’ domain covers: Vision/ Mission, Organizational Structure, Board Composition and Responsibilities, Legal Status
and Succession Planning. All these sub-areas are key to assessing the fundamental principles, stability and guiding principles.

1.1. Vision and Mission

Subsection Objectives: Assess the clarity of the organization’s statements of its purpose and values and how they have been
shared.

Resources: Vision statement; mission statement; and board, senior manager, and staff questionnaires or interviews.

3
https://usaidlearninglab.org/library/organizational-capacity-assessment
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Vision and
Mission Vision and mission Vision and mission Vision and mission Vision and mission
statements are statements are written, but statements are written and statements are written
• Not written • Vague and general • Reasonably clear and and
• Written, but not clear • Partly relevant to specific • Clear and specific
and specific organization’s current • Relevant to the • Relevant to the
• Written, but no longer purpose or aspirations organization’s current organization’s
relevant to the • Not usually considered purpose or aspirations, current purpose or
organization’s current in decisions on priorities but may need some aspirations
purpose or aspirations and actions updating • Consistently
• Not considered in • Not usually included in • Usually considered in considered in
decisions on priorities staff orientation and decisions on priorities decisions on and
and actions public communication and actions actions
• Not included in staff materials • Included in staff • Included in staff
orientation and public orientation and public orientation and
communication communication public
materials materials communication
materials

1.2. Legal Requirements and status

Subsection Objectives: Determine the organization’s legal registration and compliance with national and local laws.
Resources: Registration documents, permits, and approvals; charter, constitution, articles of incorporation, and by-laws; relevant
major laws and regulations (tax, labor, occupational health and safety, and environment); senior manager questionnaires or
interviews.
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Legal Status
The organization has The organization has The organization has The organization has
• Not legally registered • Applied for legal • Legally registered and • Legally registered
or has an expired status, but is not yet obtained all required and is in fully
registration legally recognized permits and licenses compliance with all
• No charter, • A charter, constitution, • A charter, constitution, required permits and
constitution, or by- or by-laws, but they or by-laws that are licenses
laws are incomplete or out appropriate, but may • A charter,
• Inadequate knowledge of date. need some updating constitution, or by-
or unaware of all • Applied for, but not • Adequate awareness laws that are
permits or licenses yet obtained, all of its obligations under updated as needed
required for operation permits or licenses its licenses and • Good awareness of
or has not applied for required for operation permits its obligations under
them • Partial knowledge of • Adequate awareness its licenses and
• Inadequate knowledge national and local tax, of national and local permits
of its obligations under labor, occupational tax, labor, • Good awareness of
required licenses and health and safety, occupational health national and local
permits environmental, or and safety, tax, labor,
• Inadequate knowledge other laws environmental, and occupational health
of national and local • Not achieved other laws and safety,
tax, labor, compliance with these • Achieved substantial environmental, and
occupational health laws, but has begun compliance with these other laws
and safety, taking corrective laws or has corrective • Achieved full
environmental, and actions to comply with actions underway for compliance with
other laws some laws full compliance these laws
• Not achieved • Pending legal actions • Pending legal actions • Pending legal actions
compliance with these or ownership changes or ownership changes or ownership
laws and is not taking may have significant are unlikely to have changes are unlikely
 corrective actions adverse effects on significant adverse to have a significant
• Pending legal actions operations effects on operations adverse effects on
or ownership changes operations
may jeopardize
operations

1.3. Organizational Structure

Subsection Objectives: Assess whether the organizational structure is appropriate.

Resources: Organization chart (organogram) or description of staffing; senior manager and staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Organizational
The organizational The organizational The organizational structure The organizational
Structure
structure is structure is is structure is
• Informal or • Documented, but • Documented and • Documented, good
undocumented incomplete or out of adequate, but may and updated as
• Documented, but not date require some updating needed
followed • Not usually followed • Usually followed • Consistently followed
• Based on • Based on partially • Based on reasonably • Based on well-
inadequately defined clear roles and clear roles and defined roles and
departmental or responsibilities of responsibilities of responsibilities of
functional departments or departments or departments or
responsibilities and functions and lines of functions and lines of functions and lines of
lines of authority authority authority authority
1.4. Board Composition and Responsibilities:

Subsection Objectives: Assess the board’s composition, terms of reference, procedures and oversight.

Resources: Board membership list; resumes or biographical descriptions of board members, description of board responsibilities,
minutes of board meetings from the last three years, board and senior manager questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Board
An external board has The external board has The external board has The external board has
Composition
• Not been established • Members drawn from • Members drawn from a • Members drawn
and
or is not a narrow group reasonably broad from a broad
Responsibili-
functional • Limited independence spectrum spectrum
ties
• Little or no from management • Moderate • Good independence
independence from • Regular meetings less independence from from management
management than twice a year management • Regular meetings at
• No regular meetings • Meetings that are not • Regular meetings at least three times a
• No term limits well attended least twice a year year
• No process for • Ineffective or poorly • Meetings that • Meetings attended
electing or documented meetings consistently have a by all or nearly all
appointing and • A weak written terms quorum members
removing members of reference or limited • Reasonably effective • Effective and well
and officers understanding of its and adequately documented
• No written terms of functions documented meetings meetings
reference or does not • Term limits that are • An adequate written • A good written terms
understand its not defined or terms of reference and of reference and
functions reasonable understanding of its understanding of its
• No written ethics • No process for electing functions functions
policy or policy is not or appointing and • Reasonable, defined • Reasonable, defined
 enforced
• Only an advisory role
• Limited effectiveness
in setting strategies,
oversight of finance
and administration,
and programs
Most board members
have weak experience,
skills, or contacts
Board members do not
receive appropriate
training
1.5. Succession Planning
Subsection Objectives: Assess the organization’s ability to continue smooth operations and program management in the event of a
loss or change in leadership.
Resources: Job descriptions, succession plan, organization chart or staffing pattern, questionnaires or interviews.
removing members
and officers
• A written ethics policy
that is weak or not
well enforced
• Limited effectiveness
in setting strategies,
oversight of finance
and administration,
and programs
Most board members
have fair experience, skills,
or contacts
Board members rarely
receive appropriate
training
term limits term limits
• A process for electing or • Open and
appointing and transparent
removing members and procedures for
officers electing or
• A written ethics policy appointing and
that is adequate and removing members
enforced and officers
• Reasonable • A written ethics
effectiveness in setting policy that is good
strategies, oversight of and well enforced
finance and • Good effectiveness in
administration, and setting strategies,
programs oversight of finance
Most board members have and administration,
good experience, skills, and and programs
contacts All board members have
Board members receive good experience, skills,
adequate training and contacts
Board members receive
good training
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Succession
The organization has The organization has The organization has The organization has
Planning
• Very high • High dependence on its • Moderate dependence • Low dependence on
dependence on its current leader on the current leader the current leader
current leader • Ability to survive • Ability to continue • Ability to continue
• High risk of closing or without the current existing activities existing activities and
functioning poorly in leader, but at reduced without the current grow at the same
the absence of the scale, efficiency, and leader, but growth rate without the
current leader effectiveness might suffer current leader
• No succession plan • No written succession significantly • A good succession
for a leadership plan or a weak plan for • An adequate written plan exists for a
transition or coping a leadership transition succession plan exists leadership transition
with extreme events or coping with extreme for a leadership or coping with
events transition or coping extreme events
• Other current managers with extreme events • Other current
who could not take over • Other current managers who could
effectively from the managers who could take over effectively
current leader take over effectively from the current
from the current leader without major
leader, but with some transitional problems
transitional problems

2. Financial Management and Internal Control Systems

This section reviews the financial management systems, financial controls, financial documentation, financial statements and
financial reporting, audit experience, and cost sharing capacity
 2.1. Budgeting

Subsection Objectives: Assess the ability to budget and plan financial resources.

Resources: Annual and multi-year budgets,financial policies and procedures manuals, financial monitoring tools, revenue and
expenditure reports, and financial staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Budgeting • There is no master • Annual master budgets • Annual master • Annual master
budget, just project are separate from project budgets are separate budgets are separate
budgets budgets, but not well from project budgets, from project budgets
• Core cost budgeting is documented and adequately and well documented
inadequate • Core cost budgeting is documented • Core cost budget is
• Annual master budgets adequate, but not aligned • Core cost budgeting is good and aligned with
are not well documented with a strategic plan adequate and aligned a strategic plan
or realistic • The budget process uses with a strategic plan • The budget process is
• The budget process does input from program and • The budget process is inclusive and
not include program and financial staff, but is not inclusive and partly transparent
financial staff and is not inclusive and transparent transparent • Project budgets are
transparent • Project budgets are • Project budgets are realistic, clear, and
• Project budgets are not realistic, clear, and well reasonably realistic, well
realistic, clear, and well documented only with clear, and documented documentedwithout
documented external assistance without significant external assistance
• Indirect costs are not • Indirect costs are external assistance • Indirect costs are
calculated or are based calculated with external • Indirect costs are calculated without
on inadequate methods assistance or are based calculated without external assistance
or data on weak methods or data external assistance and based on good
• Non-budgeted expenses • Non budgeted expenses and based on methods and data
 are extensive and not are frequent, approved adequate methods • Non-budgeted
approved by senior by senior managers, but and data expenses are
managers or donors as not usually approved by • Non-budgeted infrequent, approved
required donors as required expenses are by senior managers,
• Multi-year revenue and • Multi-year revenue and occasional, approved and consistently
expenditure projections expenditure projections by senior managers, approved by donors as
are not done are weak and usually approved required
• Revenues and • Revenues and by donors as required • Multi-year revenue
expenditures are not expenditures are • Multi-year revenue and expenditure
monitored against monitored against and expenditure projections are
budgets budgets quarterly projections are reasonably accurate
adequate • Revenues and
• Revenues and expenditures are
expenditures are monitored against
monitored against budgets monthly
budgets monthly

2.2. Accounting System

Subsection Objectives: Assess the ability to record and report revenues and expenditures in an accurate and timely manner.
Resources: Financial policies and procedures manuals, financial monitoring tools, accounting journals, chart of accounts, general
ledger, revenue and expenditure reports, and financial staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Accounting The accounting system is The accounting system is The accounting system is The accounting system is
System • Not using double-entry • Using double-entry • Using double-entry • Using double-entry
accounting or it is not accounting, but it is not accounting that is accounting that is
reliable completely reliable reliable, but may need reliable and meets
some updating to current legal and
 • Not based on a • Based on a standard chart
standard chart of of accounts that
accounts that corresponds to the general
corresponds to the ledger
general ledger • Manual or computerized
• Manual • Cash based
• Cash based • Attributing financial
• Not attributing transactions to projects,
transactions to but not comparing them to
projectsnor comparing budget ceilings
them to budget • Not adequately tracking
ceilings unallowable expenses,
• Not tracking advances, sales taxes,
unallowable expenses, foreign currency
advances, sales taxes, conversions, and sub-
foreign currency grants
conversions, and sub- • Not properly recording
grants some payments and
The organization has a receipts
bookkeeper, but no The organization has a partly
accountant qualified accountant who
reports to the board or a
qualified accountant who
reports to the chief executive
meet current legal and donor requirements
donor requirements • Based on a standard
• Based on a standard chart of accounts that
chart of accounts that corresponds to the
corresponds to the general ledger
general ledger • Computerized
• Computerized • Cash or accruals based
• Cash or accruals based or a hybrid
• Attributing financial • Attributing financial
transactions to transactions to
projects and projects and
comparing them to comparing them to
budget ceilings budget ceilings
• Tracking unallowable • Tracking unallowable
expenses, advances, expenses, advances,
sales taxes, foreign sales taxes, foreign
currency conversions, currency conversions,
and sub-grants and sub-grants
• Properly recording all • Properly recording all
transactions transactions
The organization has a The organization has a
qualified accountant who qualified accountant who
reports to the board, but reports to the board and
may need some training regularly updates skills

2.3. Internal Controls (Checks and Balances and Segregation of Duties)

Subsection Objectives: Assess whether there are adequate internal controls to safeguard funds and check the accuracy and
reliability of accounting data.
 Resources: Financial manual, accounting journals, chart of accounts, general ledger, financial statements and annexes, bank records,
and financial staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Internal • There is inadequate • There is weak separation • There is adequate • There is good
Controls separation of duties of duties among separation of duties separation of duties
among procurement procurement staff and among procurement among procurement
staff and staff handling staff handling revenues staff and staff handling staff and staff handling
revenues • Procedures for managing revenues revenues
• Procedures for payments, expenditures, • Procedures for • Procedures for
managing payments, and petty cash are weak managing payments, managing payments,
expenditures, and petty • Few payments are made in expenditures, and petty expenditures, and
cash are inadequate cash cash are adequate petty cash are good
• Many payments are • Checks are secured and • Cash payments are not • Cash payments are not
made in cash signed by at least two made above petty cash made above petty
• Checks are not secured authorized people limits cash limits
or do not get signed by • Checks are not pre-signed • Checks are not pre- • Checks are secured
at least two authorized or made out to “cash” or signed or made out to and signed by at least
people “bearer” “cash” or “bearer” two authorized people
• Checks are pre-signed • Field offices have weak • Checks are secured and • Checks are not pre-
or made out to “cash” internal controls signed by at least two signed or made out to
or “bearer” • Insufficient frequency of authorized people “cash” or “bearer”
• Field offices have reconciling and reviewing • Field offices have • Field offices have good
inadequate internal field office advances adequate internal internal controls
controls • The organization rarely controls • Good frequency of
• Field office advances assesses financial risks • Adequate of reconciling reconciling and
are not adequately • An internal or external and reviewing field reviewing field office
 reconciled and reviewed
• The organization does
not assess financial risks
• An internal or external
audit or assessment of
internal controls has not
been done or has found
uncorrected significant
weaknesses or
deficiencies
audit or assessment has office advances advances
found significant • The organization • The organization
weaknesses or deficiencies periodically assesses regularly assesses and
in internal controls that financial risks mitigates financial
have only been partially • An internal or external risks
corrected audit or assessment has • An internal or external
found some weaknesses audit or assessment
or deficiencies in has found no
internal controls that significant weaknesses
have been fully or deficiencies in
corrected internal controls

2.4. Bank Account Management

Subsection Objectives: Assess whether bank accounts properly separate donor and project funds and personal funds and bank
records are properly reconciled and reviewed.

Resources: Financial manual, accounting journals, chart of accounts, general ledger, financial statements and annexes, bank records,
and financial staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Bank Account
Management • The organization has no • Donor funds are in • Donor funds are in • Donor funds are in
bank accounts separate bank accounts separate bank accounts separate bank
• All donor funds are co- for each award for each award accounts for each
mingled in a single bank • Personal funds are not • Personal funds are not award
 account kept in the kept in the • Personal funds are
• Personal funds of board organization’s bank organization’s bank not kept in the
members or managers accounts accounts organization’s bank
are kept in the • Bank accounts are • Bank accounts are accounts
organization’s bank usually reconciled and consistently reconciled • Bank accounts are
accounts reviewed by and reviewed by consistently
• Bank accounts are not management at least management at least reconciled and
reconciled and reviewed once a month once per month reviewed by
by management at least management at
once per month least once per
month

2.5. Financial Documentation (Financial Records and Filing)

Subsection Objectives: Assess whether the organization has a routine reporting system for financial information and is able to meet
various donors’ financial reporting requirements.
Resources: Financial reports to government, USAID and other donors; filing system; payment vouchers; petty cash records; and
financial staff questionnaires or interviews.
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Financial Financial documentation Written financial Written financial Written financial
Documentation policies and procedures documentation policies and documentation policies documentation policies and
are procedures are and procedures are procedures are
• Not written • Weak and require • Adequate, but • Good and regularly
• Written, but not significant changes may require updated
supported by • Adequate, but not some updating • Consistently supported
adequate records usually followed • Usually by good records and
or filing • Financial files are kept, supported by filing
• Financial files are not but are incomplete adequate records • A good financial filing
kept or are very • Some accounting entries and filing system exists and financial
incomplete lack proper • Financial files are files are secure, readily
• Accounting entries documentation readily available, available, and complete
frequently lack • Financial files are readily reasonably • Accounting entries
proper available complete, and consistently have proper
documentation • Financial files are secure secure documentation
• Financial files are not • Financial files are • Accounting entries • Financial files are
readily available maintained by generally have maintained by designated
• Financial files are not designated staff proper staff
secure • There may be a large documentation • There is no significant
• No staff have been filing backlog • Financial files are filing backlog
designated to • Weak practices for maintained by • Good practices for backup
manage financial backup and recovery of designated staff and recovery of important
files important documents • There may be a small documents
• No regular practices filing backlog
for backup and • Adequate practices
recovery of for backup and
important recovery of
documents important
documents
2.6. Financial Statements and Reporting

Subsection Objectives: Assess the policies, procedures, and practices for generating financial statements that meet the needs of the
organization and comply with government and donor financial reporting requirements.
Resources: Financial statements, financial staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Financial • Internal financial • Internal financial • Internal financial • Internal financial
Statements statements are not statements are produced statements are statements are
regularly produced less than once a quarter produced at least once a produced at least once
• Internal financial • Financial statements are quarter a month
statements are incomplete or insufficiently • Financial statements are • Financial statements
inadequate or lack documented with reasonably complete are complete, reliable,
adequate explanatory explanatory notes and reliable, but may and well documented
notes • Managers do not regularly need better explanatory with good explanatory
• Managers do not review financial notes notes
regularly review statements • Managers usually • Managers consistently
financial statements • Managers review financial review financial review financial
• Managers who review statements, but rarely take statements statements
financial statements, corrective actions based on • Managers usually take • Managers consistently
but rarely take the review corrective actions based take corrective actions
corrective actions • Financial reports on donor on reviewed financial based on reviewed
based on the review projects are: statements financial statements
• Financial reports on o mostly accurate, but • Financial reports on • Financial reports on
donor projects are: incomplete; donor projects are: donor projects are:
o not prepared; or o weakly documented; o accurate and o accurate and
o they are prepared, o not usually timely; reasonably complete; complete;
but not accurate, o prepared with o adequately o well documented;
 complete, significant external documented; o consistently timely;
adequately, or assistance; o usually timely; prepared without
timely o do not meet donor o prepared without external assistance;
documented; standards without much external assistance; o meet donor
o only prepared with revision; o meet donor standards with little
substantial o prepared by designated standards with few or no revision;
external staff, but not approved significant revisions; o prepared and
assistance; by others o prepared and approved by
o not produced to approved by separate
donor standards; separate designated designated staff
o not prepared and staff
approved by
separate
designated staff

2.7. Audit Experience

Subsection Objectives: Assess audits are done, meeting donors’ requirements, having system for addressing findings.

Resources: Audit policy, financial audit reports, post-audit management plans, chief executive (director) and financial staff
interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Audit The organization has The organization has The organization has The organization has
Experience • No internal audit system • A weak internal audit • An adequate internal • A good internal
• Not had external project system audit system audit system
audits • Weak written • Adequate written • Good written
• Not had financial policies, procedures, policies, procedures and policies, procedures,
statements audited or and practices for practices for managing and practices for
managing audits and audits and closing audit managing audits and
 reviewed by a recognized
third party
• No written policies,
procedures, or practices
for managing audits and
closing audit findings and
recommendations
• Financial statements that
cannot be adequately
audited due to their
incompleteness,
unreliability, or lack of
documentation
• Financial statements or
procedures that would
receive a qualified
opinion, adverse opinion,
or disclaimer of opinion, if
they were audited
• Had an accountant or
regulatory body
communicate a deficiency
within the last three years
that cannot be easily
remedied
closing audit findings findings closing audit
and recommendations findings and
recommendations • Financial statements recommendations
• Had occasional regularly audited or • Financial statements
project audits, but no reviewed by a third party, audited annually by
audits of its complete not annually a third party
financial statements • Received a qualified • Received an
• Financial statements opinion on an audit unqualified opinion
that have received a within the last three in the last audit (not
qualified opinion, years, but the issues were a modified,
adverse opinion, or not material to financial qualified, adverse or
disclaimer of opinion management and posed disclaimer of
• Had an auditor, little or no fiduciary or opinion).
accountant, or performance risk • Had an auditor,
regulatory body • Had an auditor, accountant, or
communicate a accountant, or regulatory regulatory body that
deficiency in financial body communicate a did not identify any
statements or deficiency in financial deficiency in
procedures within statements or procedures financial statements
the last three years within the last three or procedures in the
that has not been years that has been fully last year
fully remedied remedied
2.8. Cost Sharing

Subsection Objectives: Assess whether the organization has systems to track, report, and document cost sharing and meet the cost
sharing requirement in their agreements with various donors’ regulations.

Resources: Cost sharing experience, vouchers or reports; interviews with chief executive (director) and financial managers.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2
Cost The organization has
Sharing • Not had any donor cost-
sharing requirements
• Had prior donor cost-
sharing requirements that
were not met
• No written policies and
procedures for recording
and reporting on cost-
sharing
• Written policies and
procedures on cost sharing
that are inadequate and
require substantial
changes
The organization has
• Not had any donor cost-
sharing requirements or is
not yet expected to
contribute
• Had prior donor cost-sharing
requirements that were
behind schedule, but were
eventually met
• Begun complying with its
first donor cost-sharing
requirement, and is current
on all active cost-sharing
requirements
• Weak written policies and
procedures for recording
and reporting on cost-
sharing that require
significant changes
3 4
The organization has The organization has
• Had prior donor • Had prior donor
cost-sharing cost-sharing
requirements that requirements that
were fully met were consistently
• Been current on all met in full and on
active cost-sharing time
requirements • Good written
• Adequate written policies and
policies and procedures for
procedures for recording and
recording and reporting on cost-
reporting on cost- sharing that are
sharing that may updated as needed
need some updating
3. Administration and Procurement Systems

This section reviews the operational policies, procedures, and systems, including those for travel, procurement, fixed asset control,
and branding and marking as well as management and the degree of management and staff understanding and compliance with
them.

3.1. Operating Policies, Procedures, and Systems

Subsection Objectives: Assess the soundness of operating policies and procedures; degree of staff understanding and compliance.
Resources: Policy and procedures manual; staff questionnaires; senior manager and staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2
Operating Operating policies,
Policies, procedures, and systems
Procedures, are
and • Not written
Systems • Inadequate and
require substantial
changes
• Rarely followed
• Do not address use of
office equipment,
supplies, office
vehicles, taxis, and
Operating policies,
procedures, and systems
are written and
• Weak and require
significant changes
• Not usually followed
• Only partially address
use of office equipment,
supplies, office vehicles,
taxis, and personal
vehicles; handling of
mail, phone, faxes, and
3 4
Operating policies,
procedures, and systems
are written and
• Adequate, but may
require some updating
• Usually followed
• Adequately address
use of office
equipment, supplies,
office vehicles, taxis,
and personal vehicles;
handling of mail,
Operating policies,
procedures, and systems
are written and
• Good and regularly
updated
• Consistently followed
• Comprehensively
address use of office
equipment, supplies,
office vehicles, taxis,
and personal vehicles;
handling of mail,
 personal vehicles; photocopying; safety phone, faxes, and phone, faxes, and
handling of mail, and security; lost or photocopying; safety photocopying; safety
phone, faxes, and stolen equipment; and and security; lost or and security; lost or
photocopying; safety the hiring and use of stolen equipment; and stolen equipment; and
and security; lost or consultants the hiring and use of the hiring and use of
stolen equipment; and • Forms and approval consultants consultants
the hiring and use of processes are not • Most forms and • Forms and approval
consultants appropriately approval processes are processes are
• Forms and approval standardized and appropriately consistently
processes are not computerized standardized and appropriately
appropriatelystandardi • Written guidance on computerized standardized and
zed and computerized client support and • Written guidance on computerized
• No written guidance on provision of goods and client support and • Written guidance on
client support and services is inadequate or provision of goods and client support and
provision of goods and not usually followed services is adequate provision of goods and
services or guidance is and usually followed services is good and
rarely followed consistently followed

3.2. Information Technology

Subsection Objectives: Assess the soundness of IT policies and procedures and systems and staff compliance.
Resources: Policy and procedures manual; staff questionnaires; senior manager and staff questionnaires or interviews.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Information Information technology Information technology Information technology Information technology
Technology policies and procedures are policies and procedures policies and procedures policies and procedures
• Not written are written and are written and are written
• Written, but require • Weak, requiring • Adequate, but may • Good and regularly
substantial changes, or significant changes require some updating updated
 rarely followed
IT systems are
• Inadequate for the
current staff size
• Not networked
• Based on obsolete
hardware or software or
illegal software
• Hindered by inadequate
skills of IT staff or users
• Affected by lack of
training on IT security,
policies, and applications
• Not secure from
malware and security
breaches
• Frequently affected by
unreliable grid electricity
due to lack of generator
equipment or fuel
• Not backed up
There is no system for
tracking laptops
• Not usually followed • Usually followed • Consistently followed
IT systems are IT systems are IT systems are
• Barely adequate for • Adequate for the • Capable of serving
the current staff size current staff size expected growth in
• Networked • Networked the staff size over the
• Based on weak • Based on adequate next year
hardware or software hardware and legal • Networked
or illegal software software • Based on good
• Hindered by weak • Supported by hardware and legal
skills of IT staff or adequate skills of IT software
users staff or users and • Supported by good
• Affected by sufficient, training on skills of IT staff or
insufficient training on IT security, policies, users and frequent,
IT security, policies, and applications regular training on IT
and applications • Reasonably secure security, policies, and
• Partly secure from from malware and applications
malware and security security breaches • Secure from malware
breaches • Not usually affected and security breaches
• Often affected by by unreliable grid • Rarely affected by
unreliable grid electricity due to unreliable grid
electricity and sufficient generator electricity due to
insufficient generator equipment and fuel sufficeint generator
equipment or fuel • Regularly backed up equipment and fuel
• Occasionally backed on an adequate • Regularly backed up
up schedule on a frequent
There is an adequate schedule
There is a weak system for system for tracking There is a good system for
tracking laptops laptops tracking laptops
3.3. Travel Policies and Procedures

Subsection Objectives: Assess the soundness of travel policies and procedures and degree of staff understanding and compliance.
Resources:Travel procedures manual; travel authorizations and travel vouchers; financial manager, accountant, and staff
questionnaires or interviews.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Travel Travel policies and procedures Travel policies and Travel policies and Travel policies and
Policies are procedures are written and procedures are written procedures are written
and • Not written • Weak and require and and
Procedures • Inadequate and require significant changes • Adequate, but may • Good and regularly
substantial changes • Adequate, but not require some updated
• Adequate, but rarely usually followed updating • Consistently followed
followed • Supported by weak • Usually followed • Supported by good
• Not supported by records • Supported by records
adequate records • Often not in compliance adequate records • Consistently in
• Not in compliance with with donor • Usually in compliance compliance with
donor requirements, requirements, including with donor donor requirements,
including advance advance approvals requirements, including advance
approvals There are documented, including advance approvals
There are no documented, standard per diem rates approvals There are documented,
standard per diem rates or that are usually applied There are documented, standard per diem rates
they are not followed standard per diem rates that are consistently
Travel expense reports Travel expense reports that are consistently applied
• Have no standard format • Have a standard format applied
• Are not computerized • Are not computerized Travel expense reports
• Are not supported by • Are not usually Travel expense reports • Have a standard
 written trip reports
• Are subject to long delays
before reimbursement
when complete
supported by written • Have a standard format
trip reports that are format • Are computerized and
centrally filed • Are computerized in integrated with the
• Are not usually spreadsheet software travel approval and
reimbursed promptly • Are usually supported accounting systems
when complete by written trip • Are consistently
reports, but they supported by written
might not be centrally trip reports that are
filed centrally filed
• Are usually • Are consistently
reimbursed promptly reimbursed promptly
when complete when complete

3.4. Procurement

Subsection Objectives: Assess the soundness of procurement policies &procedures; degree of staff understanding and compliance.
Resources: Procurement policies, plans, files; payment vouchers; financial manager, accountant, staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Procure Procurement policies and Procurement policies and Procurement policies and Procurement policies and
ment procedures are procedures are written and procedures are written procedures are written
• Not written • Weak and require and and
• Written, but inadequate significant changes • Adequate, but may • Good and regularly
and require substantial • Adequate, but not require some minor reviewed and revised
changes usually followed changes or updating as needed
• Not followed • Hindered by weak • Generally followed • Consistently followed
• Not supported by procurement records • Supported by • Supported by good
adequate procurement • Occasionally monitored adequate procurement records
records for compliance procurement records • Consistently
• Not monitored for • Include guidance on • Usually monitored for monitored for
compliance codes of conduct; fair compliance compliance
• Include guidance on codes and open competition; • Include guidance on • Include guidance on
of conduct; fair and open ineligible goods, codes of conduct; fair codes of conduct; fair
competition; ineligible services, and suppliers; and open competition; and open competition;
goods, services, and sources; and allowable, ineligible goods, ineligible goods,
suppliers; sources; and allocable, and services, and suppliers; services, and suppliers;
allowable, allocable, and reasonable costs sources; and sources; and
reasonable costs • Usually in compliance allowable, allocable, allowable, allocable,
• Not in compliance with with donor and reasonable costs and reasonable costs
donor requirements, requirements, including • Usually in compliance • Consistently in
including advance advance approvals with donor compliance with donor
approvals • Supported with requirements, requirements,
• Not supported with occasional training, including advance including advance
adequate training, including ethics training approvals approvals
including ethics training • At risk for duplicate • Supported with • Supported with
• At risk due to potential payments, voucher periodic training, regular training,
duplicate payments, misuse, reliance on cash including ethics including ethics
voucher misuse, reliance payments training training
on cash payments • Not at risk for • Not at risk for
duplicate payments, duplicate payments,
voucher misuse, voucher misuse,
reliance on cash reliance on cash
payments payments,
3.5. Fixed Asset Management (Equipment and Property)

Subsection Objective: Assess the soundness of policies and procedures for fixed assets management and degree of staff
understanding and compliance.
Resources: Fixed assets register, physical inventory reports; payment vouchers: financial manager, accountant, and staff
questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Fixed Asset Asset management policies Asset management policies Asset management Asset management
Manage- and procedures are and procedures are written policies and procedures policies and procedures
ment • Not written and are written and are written and
• Written, but inadequate • Weak and require • Adequate, but may • Good and regularly
and require substantial significant changes require minor changes reviewed and revised
changes • Adequate, but not or some updating as needed
• Not supported by usually followed • Generally followed • Do not require
adequate inventory • Hindered by weak • Supported by changes
records inventory records adequate inventory • Consistently followed
• Not comprehensive, • Partly comprehensive, records • Supported by good
including a definition of including a definition of • Generally inventory records
non-expendable non-expendable comprehensive, • Comprehensive,
equipment and equipment and including a definition including a definition
requirements for titling, requirements for titling, of non-expendable of non-expendable
inventory, insurance, inventory, insurance, equipment and equipment and
and custody and custody requirements for requirements for
Equipment and property Equipment and property titling, inventory, titling, inventory,
• Are not marked with • Are not consistently insurance, and custody insurance, and custody
inventory control marked with inventory Equipment and property Equipment and property
numbers and ownership control numbers and • Are consistently • Are consistently
 • Are not properly ownership
maintained, replaced, • Are not usually properly
and disposed maintained, replaced,
• Shared use is not and disposed
tracked and billed to • Shared use is not
each project tracked and billed to
• Depreciation is not each project
calculated annually • Depreciation is
according to acceptable calculated annually
standards according to acceptable
standards
marked with inventory marked with inventory
control numbers and control numbers and
ownership ownership
• Are usually properly • Are not usually
maintained, replaced, properly maintained,
and disposed replaced, and disposed
• Shared use is usually • Shared use is not
tracked and billed to tracked and billed to
each project each project
• Depreciation is • Depreciation is
calculated annually calculated annually
according to according to
acceptable standards acceptable standards

3.6. Branding and Marking

Subsection Objectives: Assess compliance with the branding and marking requirements of USAID and other donors, where
applicable.

Resources: Branding and marking plan; senior manager interviews; observation of signs at sites, vehicles, equipment, and
publications.
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Branding and The organization has The organization has The organization has. The organization has
Marking • Not received any financial • Had prior donor • Had prior donor branding • Had prior donor
support from donors with branding and marking and marking branding and
branding and marking requirements that were requirements that may marking
requirements not fully met have behind schedule, requirements that
• Received financial • Been in the process of but were eventually fully were consistently
support from donors with complying with its first met met in full and on
branding and marking donor branding and • Adequate written policies time
requirements, but has marking requirements and procedures for • Good written
not yet complied with • Weak written policies branding and marking policies and
these requirements and procedures for that may need some procedures for
• No written policies and branding and marking updating branding and
procedures on branding • Notices required by law • Notices required by law marking that are
and marking or donors are not or donors are usually updated as
• Notices required by law usually posted posted needed
or donors are not posted • A logo and/or tagline • A logo and tagline • Notices required
• No logo or tagline by law or donors
are usually posted
• A well-recognized
logo and tagline
4. Human Resource Systems

This section assesses the quality of staff job descriptions, recruitment and retention approaches, staffing levels, personnel policies,
the staff time management and payroll system, staff and consultant history documentation, the staff salary and benefits policy, staff
performance management, staff diversity, and the policy on volunteers and interns to determine whether the organization can
maintain a satisfied and skilled workforce, manage operations, and implement quality programs.

4.1. Adequacy of Staffing and Job Descriptions

Subsection Objectives: Review the organization’s systems for recruiting qualified staff, structuring staff positions, and developing
and updating job descriptions to ensure that roles and responsibilities are clearly defined, understood, and relevant.
Resources: Human resources policy; sample job descriptions; senior manager and staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Adequacy Policies and procedures Policies and procedures on Policies and procedures Policies and procedures on
of Staffing on staffing and job staffing and job descriptions on staffing and job staffing and job
and Job descriptions are: are: descriptions are: descriptions are
Descriptions o not written; or o written, but weak o written and o written and good
o are inadequate and require adequate, but may and regularly
and require significant changes; require minor revised as needed;
substantial or changes or some o do not require
changes; o adequate, but not updating. T changes
o or they are not usually followed. o generally followed o consistently
followed; o may be hindered by o supported by followed;
o not supported by weak records or lack adequate records in o supported by good
adequate records of secure central secure central files; records in secure
 in secure central files; o adequately central files; and
files; o partly comprehensive o fully comprehensive
o not comprehensive addressing position addressing position
comprehensive addressing position titles, roles and titles, roles and
addressing titles, roles and responsibilities, responsibilities,
position titles, responsibilities, required required
roles and required qualifications and qualifications and
responsibilities, qualifications and skills, reporting, skills, reporting,
required skills, reporting, delegations of delegations of
qualifications and delegations of authority, and re- authority, and re-
skills, reporting, authority, and re- assignments assignments
delegations assignments • A written staffing plan • A written staffing plan
ofauthority, and • A written staffing plan that is generally that is good and
re-assignments that is weak or not adequate and is consistently followed
• No written staffing usually followed usually followed with with appropriate
plan or not followed • Some key management, appropriate flexibility flexibility
• Many key technical, or finance • Most key • All key management,
management, positions have not yet management, technical, and finance
technical, or finance been established, technical, and finance positions are filled by
positions have not remain vacant, or are positions are filled by people with
been established, filled by people without people with appropriate
remain vacant, or are the appropriate appropriate qualifications and skills
filled by people qualifications or skills qualifications and skills • Vacancies have not
without appropriate • Some vacancies have • Some vacancies have reduced efficiency or
skills significantly reduced reduced efficiency or effectiveness
• Some vacancies have efficiency or effectiveness for no • Some staff need to
significantly reduced effectiveness for 3-6 more than 3 months improve their capacity
efficiency or months • Some staff need to to take on new tasks or
effectiveness for • Many staff need to improve their capacity adjust to new systems
more than 6 months significantly improve to do their current and requirements
• Many staff need to their capacity to do jobs well • There is good diversity
 substantially improve their current jobs well • There is significant in the gender, ethnic,
their capacity to do • There is some diversity diversity in the gender, religious, and cultural
their jobs well in the gender, ethnic, ethnic, religious, and composition of
• There is little religious, and cultural cultural composition management &staff
diversity in the composition of of management and • The organization has
gender, ethnic, management and staff, staff, but some groups made some active
religious, and cultural but some groups are remain under- efforts to diversify
composition of significantly under- represented management and staff
management and represented • The organization has that have been
staff • The organization has made some active successful
• The organization has made some efforts to efforts to diversify
made little or no diversify management management and staff
active efforts to and staff that have not that have been
diversify staff and been very successful partially successful
management

4.2. Recruitment and Retention

Subsection Objectives: Assess the organization’s systems for recruiting and retaining staff.

Resources: Human resources manual, recruitment guidelines or policy, recruitment policies and procedures, retention strategy or
policy, attrition rates, senior manager and staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Recruitment Policies and procedures for Policies and procedures for Policies and procedures for Policies and procedures for
and staff recruitment and staff recruitment and staff recruitment and staff recruitment and
Retention retention are retention are written and retention are written and retention are written and
• Not written • Weak or • Adequate, but may • Good and regularly
• Inadequate or not incomplete require some revised as needed
 followed • Adequate, but not
• Not supported by usually followed
adequate records • Hindered by weak
• Recruitment and hiring records
are prone to favoritism • Recruitment and hiring
or bias are not open and
• References and salary transparent
history are not verified • References and salary
• It is difficult to recruit history are not usually
most positions verified
• Staff attrition rates are • It is difficult to recruit
high for the many positions
organization’s size, • Staff attrition is above
type, and location normal for the
• Salaries and organization’s size,
advancement potential type, and location
are very low • Staff have few
• Most staff are opportunities for
dissatisfied with the career advancement
organization or their and salary increases
positions • Most staff are partially
• Staff professional satisfied with the
development needs organization and their
are not identified positions
• Rarely provide training • Staff professional
and other staff development needs are
development not adequately
opportunities for staff identified
• Occasionally provide
training and other staff
development
updating • Consistently
• Usually followed followed
• Supported by • Supported by good
adequate records records
• Recruitment, hiring, • Recruitment, hiring, and
and retention are retention are
usually open and consistently open and
transparent transparent
• References and salary • References and salary
history are usually history are consistently
verified verified
• It is difficult to recruit • It is not difficult to
some positions recruit a few key
• Staff attrition is typical positions
for the organization’s • Staff attrition is
size, type, and relatively low for the
location organization’s size,
• Staff have some type, and location
opportunities for • Staff have significant
career advancement opportunities for career
and salary increases advancement and salary
increases
• Most staff are • Most staff have high
satisfied with the satisfaction with the
organization and their organization and their
positions positions
• Staff professional • Staff professional
development needs development needs are
are periodically routinely identified at
identified, but less least once a year
than once a year • Regularly provide an
 opportunities for staff, • Regularly provide
but the amount or training and other
quality may be weak staff development
opportunities for staff,
but more is needed
appropriate amount
and quality of training
and other staff
development
opportunities for staff

4.3. Personnel Policies

Subsection Objectives: Assess whether the organization’s personnel policies conform to good practices and donor requirements
Resources: Personnel policies and procedures; senior manager and staff questionnaires or interviews
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Personnel Personnel policies and Personnel policies and Personnel policies and Personnel policies and
Policies procedures are procedures are written procedures are written and procedures are written and
• Not written and • Adequate, but may • Good and regularly
• Written, but not followed • Weak and requires require some updating reviewed and revised
• Inadequate and require significant changes or minor changes as needed
substantial changes • Not usually followed • Generally followed • Consistently followed
• Not supported by • Hindered by weak • Supported by adequate • Supported by good
adequate human resource recruitment and recruitment and human resource
records personnel records personnel records records
• Not comprehensive in • Partly comprehensive • Mostly comprehensive in • Fully comprehensive,
addressing work schedules in addressing work addressing work addressing work
and locations, salaries and schedules and schedules and locations, schedules and
benefits, sick leave and locations, salaries and salaries and benefits, locations, salaries and
annual leave, performance benefits, sick leave sick leave and annual benefits, sick leave and
reviews, employee and annual leave, leave, performance annual leave,
conduct, disciplinary performance reviews, reviews, employee performance reviews,
procedures, grievances, employee conduct, conduct, disciplinary employee conduct,
resignations, and disciplinary procedures, grievances, disciplinary procedures,
 terminations procedures, resignations, and grievances,
• Not given to all staff grievances, terminations resignations, and
• Not in compliance with resignations, and • Usually given to all staff terminations
legal and donor terminations • Usually in full • Consistently given to all
requirements and • Not usually given to all compliance with legal staff and acknowledged
certifications staff and donor requirements in writing
• Not usually in full and certifications • Consistently in full
compliance with legal compliance with legal
and donor and donor
requirements and requirements and
certifications certifications

4.4. Staff Time Management and Payrolls

Subsection Objectives: Assess whether the organization has a well-documented payroll system based on accurate timesheets that
are signed and approved and reflect hours spent on each project and indirect activities.
Resources: Payroll policies and procedures, time sheets, work schedule policies, payment vouchers, timesheets, financial managers
and staff questionnaires and interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Staff Time Payroll policies and Payroll policies and Payroll policies and Payroll policies and
Manageme procedures are procedures are written and procedures are written and procedures are written and
nt and • Not written • Weak and require • Adequate, but may • Good and regularly
Payrolls • Written, but significant changes require some updating reviewed and revised as
inadequate and • Not usually followed • Usually applied needed
require substantial Payrolls are Payrolls are • Consistently followed
changes • Supported by written • Supported by written
• Not followed timesheets that are timesheets that are Payrolls are
 Payrolls are often not timely,
• Not supported by complete, or signed by
written timesheets staff and supervisors
signed by staff and • Estimated from project
supervisors budgets
• Not approved by • Not usually approved by
senior management senior management
• Not usually free of • Usually free of errors
errors • Payroll taxes are not
• Payroll taxes are usually paid on time and
not paid supported with
• Salaries and wages documentation of
are often late, deductions and
inaccurate, or exemptions
incomplete • Salaries and wages are
late, inaccurate, or
incomplete
usually timely, • Supported by written
complete, and signed by timesheets that are
staff and supervisors usually timely, complete,
• Based on actual time and signed by staff and
worked on each project supervisors
and indirect activities • Based on actual time
• Usually approved by worked on each project
senior management and indirect activities
• Generally free of errors • Consistently approved by
• Payroll taxes are usually senior management
paid on time and • Consistently free of
supported with errors
documentation of • Payroll taxes are
deductions and consistently paid on time
exemptions and supported with
• Salaries and wages are documentation of
consistently late, deductions and
inaccurate, or exemptions
incomplete • Salaries and wages are
consistently late,
inaccurate, or incomplete

4.5. Staff and Consultant History

Subsection Objectives: Assess whether the organization’s record-keeping on staff and consultants provides the information needed
for effective management, submission of timely and effective proposals, and addressing legal disputes.
Resources: Staff and consultant resumes and salary histories, consultant work products, exit interview memos, human resources
managers and staff questionnaires and interviews, and work status records (part/full time, extended leave, salary, benefits,
assignments, training, bonuses and awards).

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Staff and The organization has The organization has The organization has The organization has
Consultant • No records of
History current and prior • Incomplete records of • Adequate records of • Incomplete records of
staff resumes, current and prior staff current and prior staff current and prior staff
performance resumes, performance resumes, performance resumes, performance
appraisals, changes appraisals, changes in appraisals, changes in appraisals, changes in
in work status, work status, salaries, and work status, salaries, work status, salaries,
salaries, and contracts and contracts and contracts
contracts • Incomplete records of • Adequate records of • Incomplete records of
• No records of consultant resumes, consultant resumes, consultant resumes,
consultant contracts, terms of contracts, terms of contracts, terms of
resumes, contracts, reference, major outputs, reference, major reference, major
terms of reference, and assessments of work outputs, and outputs, and
major outputs, and products assessments of work assessments of work
assessments of • Staff and consultant products products
work products history documentation is • Staff and consultant • Staff and consultant
• Staff and not in a secure central file history documentation history documentation is
consultant resumes • Staff and consultant is usually accessible in consistently accessible in
are not kept up to resumes are not kept up a secure central file a secure central file
date for a roster for to date for a roster for • Staff and consultant • Staff and consultant
new proposals new proposals resumes are updated resumes are updated on
• Staff exit interviews • Staff exit interviews are on an ad hoc basis for a regular basis for new
are not routinely not usually done or key specific new proposals proposals
 done findings are not • Staff exit interviews • Staff exit interviews are
documented are usually done and consistently done and
key findings are key findings are
documented documented

4.6. Staff Salaries and Benefits

Subsection Objectives: Assess whether the organization’s practices on salaries and benefits conform to good practices and legal and
donor requirements.
Resources: Human resources policy, salary classification, employee handbook, labor laws, human resources managers and staff
questionnaires and interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Staff Policies and procedures Policies and procedures on Policies and procedures on Policies and procedures on
Salaries on staff salaries and staff salaries and benefits: staff salaries and benefits: staff salaries and benefits:
and benefits are: • Weak and require • Adequate, but may • Good and updated as
Benefits • Not adequate significant changes need some updating needed
• Not in compliance and/or are not usually • Usually applied • Consistently applied
with labor laws applied • In full compliance with • In full compliance with
The organization: • In partial compliance with labor laws labor laws
• Pays less than legally labor laws The organization: The organization:
required minimum The organization: • Pays legally required • Pays legally required
wages • Pays legally required minimum wages minimum wages
• Lacks standard pay minimum wages • Has standard pay • Has standard pay ranges
ranges or a pay • Has standard pay ranges ranges or a pay or a pay classification
classification system or a pay classification classification system system
• Does not regularly system, but they are not • Usually follows the pay • Consistently follows the
adjust pay scales for usually applied ranges or classification pay ranges or
 inflation • Does not regularly adjust
• Does not document pay scales for inflation
employee benefits in a • Does not document
policy manual or employee benefits in a
handbook given to all policy manual or
employees handbook given to all
• Does not make employees
payments for • Does not make payments
government benefit for government benefit
programs or only programs or only made
made for a subset of for a subset of eligible
eligible employees employees
• Does not pay overtime • Does not usually pay
or compensatory leave overtime or
as required by law compensatory leave as
required by law
• Does not control
overtime through
advance approvals
• Periodically adjusts classification
pay scales for inflation • Regularly adjusts pay
• Documents employee scales for inflation
benefits in a policy • Documents employee
manual or handbook benefits in a policy
given to all employees manual or handbook
• Makes payments for given to all employees
government benefit • Make payments for
programs for all government benefit
eligible employees programs for all eligible
• Usually pays overtime employees
or compensatory leave • Consistently pays
as required by law overtime or
• Usually control compensatory leave as
overtimes through required by law
advance approvals • Consistently controls
overtime through
advance approvals
4.7. Staff and Contractor Supervision and Work Planning

Subsection Objectives: Assess the clarity of supervisory responsibilities and staff and contractor work planning.

Resources: Organization chart,supervision plan, supervisor reports, training needs assessment and training plans for supervisors,
employee and contractor work plans, questionnaires or interviews of managers and staff.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
The organization has The organization has The organization has The organization has
Staff and • Not defined and • Defined and documented • Defined and • Defined and
Contracto documented some supervisory documented most documented
r supervisory assignments, but they supervisory supervisory assignments
Supervisio assignments may be incomplete, assignments, but some and revised them as
n and • No written policies unclear, or out of date may need updating needed
Work and procedures for • Weak written policies and • Adequate written • Good written policies or
Planning staff and contractor procedures for staff and policies or procedures procedures for staff and
supervision contractor supervision for staff and contractor contractor supervision
• Written supervision • Supervision policies and supervision • Supervision policies and
policies and procedures that are not • Supervision policies and procedures that are
procedures that are usually followed procedures that are consistently followed
not usually followed • Some supervisors with usually followed • Supervisors with good
• Many supervisors weak skills and training • Supervisors with skills and training
with inadequate skills • Employees and adequate skills and • Employees consistently
and training contractors do not training have written workplans
• Employees and usually have written • Most employees have or performance
contractors do not workplans or written workplans or objectives prepared at
have written performance objectives performance objectives least once a year on a
workplans or prepared at least once a prepared at least once a timely basis
performance year or they are not year on a timely basis • Staff and consultants
objectives timely • Staff and consultants consistently have clear
 • Staff and consultants • Staff and consultants usually have clear and and detailed guidance
lack clear and usually do not have clear detailed guidance or or scopes of work for
detailed guidance or and detailed guidance or scopes of work for specific assignments
scopes of work for scopes of work for specific assignments
specific assignments specific assignments

4.8. Volunteers and Interns (Skip if volunteers and interns are not used)

Subsection Objectives: Assess the organization’s systems for managing volunteers and interns.

Resources: Policies on volunteers and intern recruitment, training, and supervision; records on number of volunteers and interns;
job descriptions for volunteers and interns; volunteer and intern surveys and exit interviews; senior manager questionnaires and
interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2
Volunteers The organization has policies
and Interns and procedures on selection,
training, management, and
supervision of volunteers and
interns that are
• Not written
• Written, but inadequate
and require substantial
changes
• Not applied
3 4
The organization has The organization has The organization has
written policies and written policies and written policies and
procedures on selection, procedures on selection, procedures on
training, management, and training, management, selection, training,
supervision of volunteers and supervision of management, and
and interns that are volunteers and interns supervision of
• Weak and require that are volunteers and interns
significant changes • Adequate, but may that are
• Not usually applied need some minor • Good and updated
changes or updating as needed
• Usually applied • Consistently
applied
5. Program Management

This section aims to assess the organization’s experience with donor compliance, sub-award management, technical reporting,
stakeholder involvement, and addressing culture and gender issues.

5.1. Donor Compliance Requirements (given in USAID context- modify for donors)

Subsection Objectives: Assess the organization’s capacity to comply with complex donor requirements.
Resources: Policy and procedure manuals;donor policies; grant and contract agreements; donor reports, audits, and evaluations;
and senior manager and donor questionnaires and interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Donor The organization has The organization has The organization has The organization has
Compliance • Not received a direct • Not received a direct • Received a direct • Received a direct
Require- award from USAID or award from USAID or award from USAID or award from USAID
ments another donor with another donor with another donor with • Filed the required
complex compliance complex compliance complex compliance certifications for a
requirements requirements requirements direct award from
• Not received a sub- • Received a sub-award • An adequate USAID
award from USAID from USAID understanding of USG • Good understanding
• Little understanding of • A basic understanding of cost principles and of USG cost principles
USG cost principles and USG cost principles and USAID’s Standard and USAID’s Standard
USAID’s Standard USAID’s Standard Provisions for Non-US Provisions for Non-US
Provisions for Non-US Provisions for Non-US organizations organizations
organizations organizations • Adequate systems and • Good systems and
• Inadequate systems • Weak systems and procedures to meet procedures to meet
and procedures that procedures that would complex donor complex donor
 would require require significant requirements, but requirements
substantial changes to changes to meet they may need some • Consistently
meet complex donor complex donor updating complied with
requirements requirements • Usually complied with complex
• Not had to comply with • Not adequately complied complex requirements requirements of
complex requirements with complex of USAID and other USAID and other
of USAID and other requirements of USAID donors donors
donors and other donors

5.2. Sub-Award (Sub-Grant and Sub-Contract) Management (Skip if the organization does not manage sub-awards)

Subsection Objectives: Review systems and procedures for awarding, managing, and supervising sub-grants and sub-contracts to
other organizations.
Resources: Grants manual, sub-grant policies, partner agreements, financial and progress reports from sub-awardees, site visit
reports, staff and sub-awardee questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Sub- Policies and Policies and procedures for sub- Policies and procedures for Policies and procedures for
Award procedures for award management are sub-award management are sub-award management are
Manag sub-award • Weak and require significant • Adequate, but may require • Good
ement management changes some updating • Consistently applied
are • Not usually applied • Usually applied The organization has
• Not written The organization has The organization has • Substantial experience
• Written, but • Limited experience providing • Significant experience providing sub-awards
inadequate sub-awards providing sub-awards • Consistently oriented sub-
and require • Not adequately oriented sub- • Adequately oriented sub- awardees on their
substantial awardees on their awardees on their responsibilities
changes responsibilities responsibilities • Provided good technical
 • Not • Not usually provided adequate • Provided adequate and financial oversight to
followed technical and financial technical and financial sub-awardees, including
The oversight to sub-awardees, oversight to sub-awardees, regularly scheduled and
organization has including regularly scheduled including regularly documented supervisory
• Not and documented supervisory scheduled and visits
provided visits documented supervisory • Consistently ensured that
formal sub- • Not usually ensured that sub- visits sub-awardees submit
awards awardees submit regular • Usually ensured that sub- regular financial and
• No financial and progress reports awardees submit regular progress reports
requirement • Not provided adequate and financial and progress • Consistently provided
s for timely feedback on reports to reports adequate and timely
competition, sub-awardees • Usually provided adequate feedback on reports to
transparenc • Inadequate requirements for and timely feedback on sub-awardees
y, and competition, transparency, and reports to sub-awardees • Good requirements for
ethical ethical behavior of sub- • Adequate requirements for competition, transparency,
behavior of awardees competition, transparency, and ethical behavior of
sub- and ethical behavior of sub- awardees
awardees sub-awardees

5.3. Technical Reporting

Subsection Objectives: Assess the organization’s ability to document activities and results for effective implementation, planning,
and program development as well as reporting to donors.
Resources: Progress and technical reports, donor feedback on reports, and interviews with senior managers and donors.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Technical Technical reports on Technical reports on Technical reports on Technical reports on
Reporting projects have projects have projects have projects have
• Not been prepared • Been prepared with
• Been prepared with significant assistance
substantial assistance from a donor or
from donors or technical assistance
technical assistance providers
providers • Been reliable, but may
• Been incomplete or not be complete or
unreliable timely
• Not tracked workplan • Not usually tracked
progress and program workplan progress and
or project indicators program or project
• Not been used to indicators
analyze strategies and • Demonstrated a limited
activities, challenges ability to document
and opportunities, quantitative and
remedial measures, qualitative progress and
lessons learned, and review objectives,
good practices strategies, and activities
• Not been reviewed by • Not usually been
senior management or effectively used to
shared broadly with analyze strategies and
staff activities, challenges
and opportunities,
remedial measures,
lessons learned, and
good practices
• Not usually been
reviewed by senior
management or shared
broadly with staff
• Been prepared without • Been prepared without
significant assistance assistance from donors
from donors or or technical assistance
technical assistance providers
providers • Been reliable,
• Been reliable and complete, and timely
reasonably complete, • Consistently tracked
but may not always be workplan progress and
timely program or project
• Usually tracked indicators
workplan progress and • Demonstrated a good
program or project ability to document
indicators quantitative and
• Demonstrated an qualitative progress
adequate ability to and review objectives,
document quantitative strategies, and
and qualitative progress activities
and review objectives, • Consistently been used
strategies, and activities to analyze strategies
• Usually been used to and activities,
analyze strategies and challenges and
activities, challenges opportunities, remedial
and opportunities, measures,lessons
remedial measures, learned, and good
lessons learned, and practices
good practices • Consistently been
• Usually been reviewed reviewed by senior
by senior management management and
and shared broadly staff shared broadly with
staff
5.4. Stakeholder Involvement

Subsection Objectives: Assess whether the organization is responsive to stakeholder needs and seeks input from clients
(beneficiaries) in designing, implementing, monitoring, and evaluating projects.
Resources: Project guidelines; stakeholder analyses; project plans; site visit, monitoring, and evaluation reports; client and staff
questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Stakeholder The organization has The organization has The organization has The organization has
Involvement • No written policies and • Weak written policies • Adequate written • Good written policies
procedures for and procedures for policies and and procedures for
stakeholder involvement stakeholder procedures for stakeholder
and confidentiality, or involvement and stakeholder involvement and
they are not applied confidentiality, or they involvement and confidentiality
• Not sought a broad are not usually applied confidentiality • Consistently collected
range of stakeholder • Not usually collected • Usually collected sufficient baseline data
views in project design, sufficient baseline data sufficient baseline • Consistently
implementation, and before projects data before projects incorporated a broad
monitoring and • Not usually • Usually incorporated range of stakeholder
evaluation incorporated a broad stakeholder views in views in project design,
• Not collected sufficient range of stakeholder project design, implementation, and
baseline data before views in project design, implementation, and monitoring and
projects implementation, and monitoring and evaluation
• No regular meetings or monitoring and evaluation • Regular meetings with
communication with evaluation • Regular meetings two-way
clients • Irregular meetings with with two-way communications with
• Rarely shared project clients or largely one- communications with clients and clear
findings and way communications clients channels for
recommendations with • Not usually shared • Usually shared stakeholders to raise
 clients project findings and
• Not referred clients to recommendations with
other appropriate clients
service providers • Not usually referred • Usually referred
• Inadequate physical clients to other
space to meet with appropriate service
individual clients and providers
groups • Poor physical space to •
meet with individual
clients and groups
project findings and issues at any time
recommendations • Consistently shared
with clients project findings and
recommendations with
clients to other clients
appropriate service • Consistently referred
providers clients to other
Adequate physical to appropriate service
space to meet with providers
individual clients and • Good physical space to
groups meet with individual
clients and groups

5.5. Culture and Gender Issues

Subsection Objectives: Assess the organization’s ability to address culture and gender issues in its strategies and project design and
implementation.

Resources: Culture assessments; gender analyses; strategy documents; project plans; monitoring reports; evaluations; senior
manager, staff and client questionnaires and interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Culture Policies, procedures, and Written policies, Written policies, procedures, Written policies,
and systems for addressing culture procedures, and systems and systems for addressing procedures, and systems
Gender and gender issues are for addressing culture and culture and gender issues are for addressing culture
Issues • Not written gender issues are • Adequate, but may and gender issues are
• Written, but • Weak and require require some • Good
inadequate and require significant changes updating • Consistently applied
 substantial changes
• Not followed
The organization has
• Inadequate tools and
expertise for systematically
assessing culture and
gender issues
• Not given staff adequate
training on culture and
gender issues and tools
• Not adequately addressed
culture and gender issues
in project planning,
implementation,
monitoring, and evaluation
• Frequently experienced
major problems in
programs due to
inadequate consideration
of culture or gender issues
• Not usually applied • Usually applied The organization has
The organization has The organization has • Good tools and
• Weak tools and • Adequate tools and expertise for
expertise for expertise for systematically
systematically systematically assessing assessing culture and
assessing culture and culture and gender issues gender issues
gender issues • Usually given staff • Consistently given
• Not usually given staff sufficient training on staff sufficient
sufficient training on culture and gender issues training on culture
culture and gender and tools and gender issues and
issues and tools • Usually adequately tools
• Not usually adequately addressed culture and • Consistently
addressed culture and gender issues in project adequately addressed
gender issues in planning, culture and gender
project planning, implementation, issues in project
implementation, monitoring, and planning,
monitoring, and evaluation implementation,
evaluation • Occasionally experienced monitoring, and
• Often experienced major problems in evaluation
major problems in programs due to • Rarely experienced
programs due to inadequate consideration major problems in
inadequate of culture or gender programs due to
consideration of issues inadequate
culture or gender consideration of
issues culture or gender
issues
6. Project Performance Management

This section aims to assess the organization’s ability to monitor and evaluate projects, implement high-quality programs that meet
recognized standards, supervise staff, and provide field support and oversight.

6.1. Monitoring and Quality Assurance

Subsection Objectives: Review the organization’s ability to carry out regular, internal monitoring of project input use, activities, and
outputs.

Resources: Monitoring plans, tools, and internal reports, technical reports for donors, project mitigation plans, monitoring staff and
client questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2
Monitoring Policies and procedures for
and monitoring are
Quality • Not written
Assurance • Written, but inadequate
and require substantial
changes
• Not followed
The organization has
• Substantial difficulty
setting realistic targets
and meaningful
performance indicators
• Inadequate expertise in
collection and analysis
Policies and procedures for
monitoring are written and
• Weak and require
significant changes
• Not usually applied
The organization has
• Significant difficulty
setting realistic targets
and meaningful
performance indicators
• Weak expertise in
collection and analysis of
baseline and monitoring
data
3 4
Policies and procedures for
monitoring are written and
• Adequate, but may
require some updating
• Usually applied
The organization has
• Usually set realistic
targets and meaningful
performance indicators
• Adequate expertise in
collection and analysis of
baseline and monitoring
data
• Monitoring data that are
Policies and procedures
for monitoring are
written and
• Good
• Consistently applied
The organization has
• Consistently set
realistic targets and
meaningful
performance
indicators
• Good expertise in
collection and
analysis of baseline
 of baseline and • Monitoring data that are reasonably complete and monitoring data
monitoring data often incomplete or not and reliable, but may not • Monitoring data that
• Monitoring data that timely be timely are complete,
are frequently absent, • Weak ability to explain • Adequate ability to reliable, and timely
unreliable, or not timely differences between explain differences • Good ability to
• Inadequate ability to performance and the between performance explain differences
explain differences targets and to identify and the targets and to between
between performance remediation measures identify remediation performance and the
and targets, and to and lessons learned for measures and lessons targets and to
identify effective subsequent projects learned for subsequent identify remediation
remediation measures projects measures and
and lessons learned for lessons learned for
subsequent projects subsequent projects

6.2. Project and Program Evaluation

Subsection Objectives: Review the organization’s ability to conduct objective internal evaluations of project strategies, approaches,
outcomes and impacts or to organize, manage, and use external evaluations.
Resources: Project and program evaluation plans, evaluation tools, evaluation reports, staff and stakeholder surveys or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Project and Policies and procedures for Written policies and Written policies and Written policies and
Program evaluation are procedures for evaluation procedures for evaluation procedures for
Evaluation • Not written are are evaluation are
• Written, but not • Weak and require • Adequate, but may • Good
followed significant changes require some • Consistently
The organization has • Not usually updating applied
• Inadequate ability to applied • Usually applied The organization has
 prepare a scope of The organization has The organization has • Good ability to
work for an evaluation • Weak ability to • Adequate ability to prepare a scope of
of approaches, prepare a scope of prepare a scope of work work for an
performance, and work for an evaluation for an evaluation of evaluation of
results of approaches, approaches, approaches,
• Inadequate ability to performance, and performance, and performance, and
provide support and results results results
documentation for • Weak ability to • Adequate ability to • Good ability to
evaluators provide support and provide support and provide support and
• Inadequate ability to documentation for documentation for documentation for
review evaluation data evaluators evaluators evaluators
quality and reports • Weak ability to review • Adequate ability to • Good ability to
• Inadequate ability to evaluation data review evaluation data review evaluation
address evaluation quality and reports quality and reports data quality and
findings and • Weak ability to • Adequate ability to reports
recommendations in address evaluation address evaluation • Good ability to
existing and new findings and findings and address evaluation
projects recommendations in recommendations in findings and
existing and new existing and new recommendations in
projects projects existing and new
projects

6.3. Service Delivery Standards

Subsection Objectives: Determine whether the organization has adopted any recognized standards for service delivery and has the
ability to apply and monitor the standards.

Resources: International, national, or sectoral standards for service delivery, monitoring reports, evaluations, assessments by
standard-setting entities, senior manager questionnaires and interviews, certifications from organizations assessing standards
 Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Service The organization has The organization has The organization has The organization has
Delivery • Not adopted • Adopted recognized, • Adopted recognized, • Adopted recognized,
Standards recognized, international, national, international, national, international, national,
and Quality international, national, or sectoral standards or sectoral standards or sectoral standards for
Assurance or sectoral standards for service delivery for service delivery service delivery
for service delivery • Weak internal • Adequate internal • Good internal standards
• Inadequate or no standards for service standards for service for service delivery that
internal standards for delivery delivery that may need are regularly reviewed
service delivery • Not adequately some updating and revised as needed
• Not trained staff on trained relevant staff • Adequately trained • Regularly trained
service delivery on service delivery relevant staff on relevant staff on service
standards and ways to standards and ways to service delivery standards and ways to
achieve them achieve them standards and ways to achieve them
• Service standards that • Service standards that achieve them • Service standards that
are not applied and are not adequately • Service standards that are consistently applied
monitored applied or monitored are usually applied and and monitored
monitored

6.4. Field Support, Operations, and Oversight (Skip if there are no field offices or field operations)
Subsection Objectives: Assess the organization’s systems for management and oversight of field offices and operations.
Resources:Policy and procedures manuals, records of communications with field staff, field visit reports, M&E reports.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Field The organization has The organization has field The organization has field The organization has
Support, • No field offices or offices or operations and offices or operations and • Good written
Operations, operations • Weak written • Adequate written procedures and
and • No written procedures procedures and procedures and processes for field
Oversight and processes for field processes for field processes for field support, operations, and
support, operations, support, operations, support, operations, and oversight
and oversight and oversight oversight that may need • Procedures for field
• Written procedures for • Procedures for field some updating support, operations, and
field support, support, operations, • Procedures for field oversight that are
operations, and and oversight that are support, operations, and consistently applied
oversight that are not not usually applied oversight that are • Field offices or
applied • Field offices or usually applied operations that submit
• Field offices or operations that submit • Field offices or annual workplans,
operations that do not annual workplans, operations that submit budgets, and financial
submit annual budgets, and financial annual workplans, and progress reports for
workplans, budgets, and progress reports budgets, and financial headquarters review
and financial and for headquarters and progress reports for and receive good
progress reports for review, but receive headquarters review feedback
headquarters review inadequate feedback and receive adequate • A head office that
• A head office that • A head office that feedback provides good
provides inadequate provides weak • A head office that administrative and
administrative and administrative and provides adequate technical support and
technical support and technical support and administrative and oversight to the field
oversight to the field oversight to the field technical support and • A good frequency and
• Field site visits that are • An insufficient oversight to the field duration of regular field
infrequent, irregularly frequency or duration • An adequate frequency site visits
scheduled, or too short of regular field site and duration of regular
visits field site visits
6.5. Project Performance (past 3 years)

Subsection Objectives: Assess the organization’s ability to carry out its programs efficiently, effectively, and sustainably.
Resources: Program and project evaluations, donor and government funder performance ratings and references, client (beneficiary)
satisfaction surveys, questionnaires and interviews with donors, government agencies, clients, senior managers and staff,
spreadsheet with percent of project targets achieved over past 3 years.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Project Over the past 3 years, the Over the past 3 years, Over the past 3 years, the Over the past 3 years, the
Performance organization has the organization has organization has organization has
• Not received donor or • Received average • Received above • Received outstanding
government funding performance ratings average performance performance ratings or
• Received donor or or references from ratings or references references from
government funding, donors and from donors and donors and
but received low government funders government funders government funders (5
performance ratings or (3 on a scale of 5) (4 on a scale of 5) on a scale of 5)
references (1 or 2 on a • Received average • Received above • Received outstanding
scale of 5) performance ratings average performance performance ratings or
• Received low or references from ratings or references references from clients
satisfaction ratings from clients or from clients or or beneficiaries (5 on a
clients or beneficiaries beneficiaries (3 on a beneficiaries (4 on a scale of 5)
(1 or 2 on a scale of 5) scale of 5) scale of 5) • Met at least 90% of
• Met less than 70% of • Met at least 70% of • Met 80% of project project output targets
project output targets project output output targets on on time
on time targets on time time • Met at least 80% of
• Met less than 60% of • Met at least 60% of • Met at least 70% of project results targets
project results targets project results project results targets • Substantially scaled up
• Not scaled up the targets • Significantly scaled up the geographic
geographic coverage or • Not significantly the geographic coverage or scope of
 scope of its programs scaled up the coverage or scope of its programs
geographic coverage its programs
or scope of its
programs

7. Organizational Management and Sustainability

The objective of this section is to assess the organization’s ability to do effective strategic planning, use annual work plans, manage
change; generate and share knowledge and develop linkages, achieve financial sustainability; and foster effective internal
communications and decision making.

7.1. Strategic Planning (Business Planning)

Subsection Objectives: Assess the organization’s ability to review its organizational strengths, weaknesses, opportunities, and
threats; the external environment and competition; and stakeholder needs in preparing and using an effective strategic plan.
Resources: Strategic plans (business plans); annual reports; questionnaires and interviews with board, senior managers, and staff.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Strategic The strategic plan The strategic plan (business The strategic plan (business The strategic plan (business
Planning (business plan) is plan) iswritten and plan) is written and plan) is written and
(Business • Not written • Weak and requires • Adequate, but may • Good and regularly
Planning) • Written, but dated or significant changes require some updating updated
inadequate and • Does not reflect its • A reflection of its • A reflection of its
requires substantial current vision, mission, current vision, mission, current vision, mission,
changes and values and values and values
• Not based on an • Not based on an • Based on an adequate • Based on a good
analysis of strengths, adequate analysis of analysis of strengths, analysis of strengths,
 weaknesses, strengths, weaknesses, weaknesses, weaknesses,
opportunities, threats, opportunities, threats, opportunities, threats, opportunities, threats,
and realistic resource and realistic resource and realistic resource stakeholder needs,
requirements and requirements and requirements and realistic resource
availability availability availability requirements and
• Does not reflect client • Does not usually reflect • Reflects client priorities availability
priorities client priorities • Reasonably clear and • Reflects client priorities
• Not clear and specific • Partly clear and specific specific on priorities, • Clear and specific on
on priorities and lacks on priorities with some measurable objectives, priorities, measurable
measurable objectives measurable objectives and targets objectives, and targets
and targets and targets • Periodically reviewed • Regularly reviewed
• Not regularly reviewed • Occasionally reviewed • Usually used for • Consistently used for
• Not used for • Not usually used for management decisions management decisions
management decisions management decisions or operational planning or operational planning
or operational planning or operational planning

7.2. Annual Work Plans

Subsection Objectives: Assess the organization’s ability to prepare, follow, and monitor annual workplans containing goals,
measurable objectives, strategies, timelines, and responsibilities.
Resources: Annual program and project workplans, reviews of workplan progress, questionnaires and interviews of staff and donors.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Annual Annual workplans Annual workplans are Annual workplans are Annual workplans are
Workplans • Have not been prepared and are prepared and are prepared and are
prepared • Weak, incomplete, or • Adequate without • Good without external
• Have been prepared, require substantial external assistance, but assistance
but are inadequate external assistance may need minor • Consistently timely
• Not timely • Not usually timely improvements • Integrated with
• Not well linked to • Usually timely program or project
 • Not linked to program program or project • Linked to program or budgets
or project budgets budgets project budgets • Containing good goals,
• Lacking clear and • Needing significant • Containing adequate activities, timelines,
measureable goals, revisions in goals, goals, activities, responsibilities, or
activities, timelines, activities, timelines, timelines, performance
responsibilities, responsibilities, or responsibilities, or indicators and targets
performance performance indicators performance indicators • Prepared with broad
indicators, or targets and targets and targets staff participation
• Not prepared with • Not prepared with • Prepared with significant • Consistently used for
significant staff broad staff participation staff participation management
participation • Not usually used for • Usually used for decisions, or
• Not used for management decisions, management decisions, operational planning,
management operational planning, or operational planning, and monitoring
decisions, operational and monitoring progress and monitoring progress progress
planning, and • Modified without • Modified with required • Modified with
monitoring progress required donor donor approvals required donor
• Not modified as approvals approvals
needed

7.3. Change Management

Subsection Objectives: Assess the organization’s ability to respond to change in the internal and external environment.
Resources: Policies, processes, and plans for change management; schedule for reviewing policies;questionnaires or interviews.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Change The organization has The organization has The organization has The organization has
Manage- • No process or structures • Weak processes or • Adequate processes or • Good processes or
ment for responding to structures for responding structures for responding structures for responding
changes in leadership, to changes in leadership, to changes in leadership, to changes in leadership,
staffing, budgets, staffing, budgets, staffing, budgets, staffing, budgets,
 government policies, government policies, donor government policies, and government policies, donor
and donor funding levels funding levels and priorities donor funding levels and funding levels and priorities
and priorities • Demonstrated little priorities • Demonstrated good
• Not demonstrated the capacity to identify and • Demonstrated adequate capacity to identify and
ability to identify and adapt to changes in internal capacity to identify and adapt to changes in internal
adapt to changes in and external environments adapt to changes in and external environments
internal and external • Only partly responded to internal and external • Fully responded to most
environments issues identified in the environments issues identified in previous
• Not responded to issues previous capacity • Adequately responded to capacity assessments
identified in the assessments most issues identified in • Experienced few setbacks,
previous capacity • Experienced significant previous capacity problems, or delays in
assessments setbacks, problems, or assessments response to changes
• Experienced substantial delays in response to • Experienced moderate • Management that
setbacks, problems, or changes setbacks, problems, or consistenly assesses staff
delays in response to • Management that does not delays in response to comfort levels with changes
changes usually assess staff comfort changes • A good system for
• Management that does levels with changes • Management that usually monitoring whether
not assess staff comfort • A weak system for assesses staff comfort changes are implemented
levels with changes monitoring whether levels with changes and their positive and
• No system for changes are implemented • An adequate system for negative effects
monitoring whether and their positive and monitoring whether
changes are negative effects changes are implemented
implemented and their and their positive and
positive and negative negative effects
effects
7.4. Knowledge Management and External Linkages

Subsection Objectives: Assess the organization’s ability to identify good practices and lessons learned, develop linkages with other
organizations and networks to improve the enabling environment, plan sector strategies and approaches, and share knowledge
internally and externally.
Resources: Reports and presentations on lessons learned; documentation on collaborations with other organizations and networks
and participation in public and private sector and donor dialogues; senior manager and staff questionnaires or interviews.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Knowledge The organization has The organization has The organization has The organization has
Management • Inadequate or • Weak analytical • Adequate proven • Good proven analytical
and External unproven analytical capacity to identify analytical capacity to capacity to identify good
Linkages capacity to identify good practices and identify good practices practices and lessons
good practices and lessons learned and lessons learned learned
lessons learned • Weak systems for • Adequate systems for • Strong systems for
• No systematic documenting, storing, documenting, storing, documenting, storing,
approach to and disseminating and disseminating and disseminating
documenting, storing, program knowledge program knowledge program knowledge
and disseminating • Occasionally analyzed • Analyzed and shared • Analyzed and shared
program knowledge and shared good good practices and good practices and
• Not analyzed and practices and lessons lessons learned lessons learned
shared good practices learned internally, but internally at least once internally at least twice
and lessons learned not annually a year a year
internally through a • Joined some formal • Regularly participated • Frequently participated
regular process networks, but has not actively in some formal actively in formal
• Not joined any formal taken an active role in networks, although not networks and in a
networks them in a leadership role leadership role
• Rarely participated in • Occasionally • Regularly participated • Frequently and routinely
 discussions with participated in in discussions with participated in
donors, governments, discussions with donors, governments, discussions with donors,
and civil society donors, governments, and civil society governments, and civil
organizations on and civil society organizations on society organizations on
approaches, lessons organizations on policies, lessons approaches, lessons
learned, and good approaches, lessons learned, and good learned, and good
practices learned, and good practices practices
• Not presented its practices • Regularly presented its • Frequently presented its
approaches and results • Occasionally approaches and results approaches and results
at external events presented its at external events at external events
approaches and
results at external
events

7.5. Fundraising and New Business Development

Subsection Objectives: Assess the organization’s progress toward financial sustainability by reviewing its ability to identify and
obtain funding.
Resources: Business development (resource mobilization) plan; fundraising history; partnership agreements; cash flow statements
and projections; questionnaires and interviews with board, chief executive (director), senior financial managers, and new business
development and fundraising managers.
Low Capacity Basic Capacity Moderate Capacity Strong Capacity
1 2 3 4
Fundraising The organization has The organization has The organization has The organization has
and New • No written fundraising • A weak fundraising • An adequate fundraising • A good fundraising and
Business and new business and new business and new business new business
Develop- development plan development plan development plan that development plan that
ment • A written fundraising • Weak may need updating is regularly updated
 and business implementation of • Satisfactory and well implemented
development plan that the fundraising and implementation of the • Had no significant cash
is not being new business fundraising and new flow problems and
implemented development plan business development positive net income
• Had frequent cash • Had occasional cash plan over the last 2 years
flow problems or flow problems, but • Had no significant cash • Sufficient funds for
negative net income positive net income flow problems and existing programs next
last year last year positive net income year
• Only one major • Insufficient funds for over the last year • At least three major
funding source existing programs • Sufficient funds for funding sources
• Insufficient funds for next year existing programs next • Significant funding
existing programs next • Only one major year from cost recovery,
year funding source • At least two major sales, or membership
• No regular funding • Insignificant funding funding sources fees
from cost recovery, from cost recovery, • Limited funding from • Good absorptive
sales, or membership sales, or membership cost recovery, sales, or capacity for additional
fees fees membership fees projects
• Little absorptive • Limited absorptive • Adequate absorptive • Unrestricted income
capacity for additional capacity for capacity for additional and cash reserves to
projects additional projects projects cover over 6 months
• Insufficient • Unrestricted income • Unrestricted income of operating costs
unrestricted income and cash reserves to and cash reserves to without new donor
and cash reserves to cover 2-3 months of cover 3-6 months of funding
cover 2 months of operating costs operating costs without • Good access to new
operating costs without new donor new donor funding loans or an existing
without new donor funding • Access to new loans, but line of credit
funding • No existing line of no existing line of credit
• No access to new credit or limited
loans or a line of credit access to new loans
7.6. Internal Communications and Decision Making (within the organization)

Subsection Objectives: Assess the effectiveness of the organization’s internal communications within and across departments or
functions and the decision-making process.
Resources: Assessments of internal communications, reports on major organizational planning and program review meetings,
organization chart, list of staff participants in board and major management meetings, questionnaires and interviews of senior
managers and staff.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
Internal The organization has The organization has The organization has The organization has
Communications • Poor two-way • Limited two-way • Adequate two-way • Good two-way
and Decision communications communication communication communications
Making between management between management between between
and staff and staff management and management and
• No structured settings • Few structured staff staff
to exchange ideas and settings to exchange • Occasional structured • Regular structured
discuss problems or ideas and discuss settings to exchange settings to exchange
opportunities problems or ideas and discuss ideas and discuss
• Management rarely opportunitie problems or problems and
listens to or encourages • Management opportunities opportunities
staff ideas sometimes listens to • Management usually • Management
• Staff rarely initiating staff ideas, but does listens to staff ideas consistently listens to
discussions with not actively seek staff and periodically seeks staff ideas and seeks
management and input staff input staff input
raising challenging • Staff occasionally • Staff usually initiating • Staff frequently
issues initiating discussions discussions with initiating discussions
• Inadequate with management and management and with management
communications within raising challenging raising challenging and raising
 and across departments issues
or functions • Weak communications •
• A decision-making within and across
process that lacks staff departments or
involvement for shared functions
responsibility, • A decision-making
ownership, and process with little staff •
accountability involvement for
• Inadequate space and shared responsibility,
infrastructure to ownership, and
facilitate internal accountability
communications • Weak space and
infrastructure to
facilitate internal
communications
issues challenging issues
Adequate • Good
communications communications
within and across within and across
departments or departments or
functions functions
A decision-making • A decision-making
process with some process with
staff involvement for extensive staff
shared responsibility, involvement for
ownership, and shared responsibility,
accountability ownership, and
• Adequate space and accountability
infrastructure to • Good space and
facilitate internal infrastructure to
communications facilitate internal
communications

7.7. External Communications

Subsection Objectives: Assess the effectiveness of the organization’s external communications (media, general public, government,
donors, private sector, and civil society organizations).
Resources: External communications policy,website, brochures, public annual reports, publications, social media messaging,
questionnaires and interviews of senior managers and staff and target audiences.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2 3 4
External The organization has The organization has The organization has The organization has
Communi- • No written strategy • A weak written strategy • An adequate written • A good written
cations for identifying for identifying audiences, strategy for identifying strategy for identifying
audiences, channels, channels, and materials audiences, channels, audiences, channels,
and materials for for external and materials for and materials for
external communications that external external
communications requires significant communications that communications
• A written external changes may require some • A written external
communications • A written external updating communications
strategy that is communications strategy • A written external strategy that is
inadequate or not that is not usually communications consistently followed
followed followed or reviewed strategy that is usually • Good capacity for
• No capacity for • Little capacity for followed and implementing the
implementing an implementing an external periodically reviewed external
external communications strategy • Adequate capacity for communications
communications and overseeing written implementing the strategy and
strategy and and oral products external overseeing written and
overseeing written • Weak or inconsistent communications oral products
and oral products process for pre-testing strategy and • Good process for pre-
• No process for pre- external communication overseeing written and testing and revising
testing external messages and materials oral products external
communication and monitoring their • Adequate process for communication
messages and effectiveness pre-testing external messages and
materials and • Weak templates or style communication materials and
monitoring their guides for documents and messages and monitoring their
effectiveness the website materials and effectiveness
• No templates or style • A weak website monitoring their • Good templates or
guide for documents • A neutral reputation with effectiveness style guides for
and the website key stakeholders • Adequate templates or documents and the
• No website or just a style guides for website
placeholder documents and the • An effective website
• Little name website • A strongly positive
 recognition or a • An adequate website reputation with key
negative reputation • A positive reputation stakeholders
with key stakeholders with key stakeholders

7.8. Advocacy and Influence (Skip if the organization does not have an advocacy objective)
[

Subsection Objectives: Assess the strategies and effectiveness of the organization’s work on advocacy of policies and issues.
Resources: Publications; conferences; social media messaging; changes in national and local government policies, regulations, and
laws; changes in donor and regional organization policies and public views; questionnaires and interviews of senior managers, staff,
stakeholders, and the general public.

Low Capacity Basic Capacity Moderate Capacity Strong Capacity

1 2
Advocacy The organization has an
and objective of advocacy on
Influence policies and issues and
(if • Has not carried out
applicable) significant advocacy
activities over the past
three years
• No written plan or
strategy for advocacy
work or it is not followed
• Lacks staffing or skills for
effective advocacy
• Has not effectively
mobilized its clients for
advocacy
The organization has an
objective of advocacy on
policies and issues and
• Has occasionally carried
out significant advocacy
activities over the past
three years
• A weak written plan or
strategy for advocacy
work
• Insufficient number or
skills of staff for effective
advocacy
• Has been weak in
mobilizing its clients for
3 4
The organization has an The organization has an
objective of advocacy objective of advocacy on
on policies and issues policies and issues and
and • Has regularly carried
• Has regularly carried out significant
out significant advocacy activities
advocacy activities over the past three
over the past three years
years • A good written plan
• An adequate written or strategy for
plan or strategy for advocacy work
advocacy work • Good number and
• Adequate number skills of staff for
and skills of staff for effective advocacy
effective advocacy • Has been good in
• Has not developed
alliances with other
stakeholders for
advocacy
• Has not influenced the
formulation or
implementation of
government policies at
the national or local level
• Has not influenced donor
or regional organization
policies
• Has not influenced the
general public’s views
advocacy
• Has been weak in
developing alliances with
other stakeholders for
advocacy
• Has had little influence on
the formulation or
implementation of
government policies at
the national or local level
• Has had little influence on
donor or regional
organization policies
• Has had little influence on
the general public’s views
• Has been adequate mobilizing its clients
in mobilizing its for advocacy
clients for advocacy • Has been good in
• Has been adequate developing alliances
in developing with other
alliances with other stakeholders for
stakeholders for advocacy
advocacy • Has had significant
• Has had some influence on the
influence on the formulation or
formulation or implementation of
implementation of government policies
government policies at the national or
at the national or local level
local level • Has had significant
• Has had some influence on donor or
influence on donor regional organization
or regional policies
organization policies • Has had significant
• Has had some influence on the
influence on the general public’s
general public’s views
views
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March18, 2020