Grants are normally disbursed in advance of costs incurred, the intervals of disbursement may vary based on project type and need. For disbursement to NGOs the general rule is that advance disbursements can only cover the budgeted financial need for the next six-month period.
The first disbursement is usually made upon signing of the grant agreement based on the budget attached as annex A.
Subsequent disbursements are based on written disbursement requests from the grant recipient, describing the financial need for the upcoming six-month period, i.e. the budgeted expenditure for the next six months, minus unused funds and any funds available to the project from other sources during the period. To justify the need for a disbursement, an updated provisional financial statement is needed. The Norwegian regulations for financial management in central government only allows Norad to disburse funds based on actual need.
A template and example of a disbursement request can be found here.

7.2. Financial Management

Accounts and expenditures relating to the project must be easily identifiable and verifiable in the grant recipient’s accounting and book keeping systems. The accounts shall be kept up to date at least on a monthly basis.
Remember that all costs must be eligible, see here.
Norad has clear rules in its agreements that liquidity loans from Norad funds to other projects or ongoing operations are not allowed. Norad funds shall be used exclusively to finance the actual costs of implementing the project during the support period.
It is important to track expenditures against budget to timely identify the need for reallocations between budget lines that require written approval. Refer to the grant agreement for the specific requirements related to your agreement. Please note that the thresholds for reallocations are not the same as the thresholds for explanations to deviations from the budget.

7.3. Procurement

Procurement of goods, works or services needed to implement the project must be done in line with the minimum rules and principles set out in the “Part III Procurement Provisions” of the grant agreement. These rules are based on the principles of sound financial management and includes standards to ensure competition, equal treatment and non-discrimination, transparency and ex-ante publicity. These are all important aspects that help ensure good value for money and transparent use of public funds.
The grant recipients’ is responsible for ensuring that all procurements comply with the Procurement Provisions in Part III of the grant agreement. Norad does not review or pre-approve grant recipients’ internal procurement procedures to determine whether these are in line with the Procurement Provisions. Failure to comply with the Procurement Provisions will render expenditure ineligible for Norad funding. Be aware that non-compliance may also lead to the withholding of funds or a claim for repayment of all or part of the grant.

Procurement protocols

To ensure notoriety and facilitate controls by Norad, the grant recipient is required to create a procurement protocol (Special Conditions article 12.1) for all procurements exceeding NOK 100.000. A procurement protocol, according to the law on public procurement in Norway, is a document that records all significant information and decisions in a procurement process. Note that that partners are hence expected to develop a procurement protocol, i.e. not only maintain a folder with all the procurement documents.

There are minimum requirements as to what the procurement protocol must include (Special Conditions article 12.2).

For additional guidance on what Norad means by procurement protocol, grant recipients can take a look at the template Norad has developed for internal use (in Norwegian only): https://anskaffelser.no/nn/verktoy/maler/anskaffingsprotokollar-malar

7.4. Sub-grantees

Any transfer of all or part of the grant funds to a sub-grantee must be document through a written sub-grant agreement. This shall specify that the sub-grantee is required to comply with all the provisions of the grant agreement between Norad and its grant recipient that are relevant for the sub-grantee. The sub-grant agreement must specifically include provisions for results and financial reporting, audit, procurement and measures to prevent financial irregularities and SEAH. Control measures must be specified, the grant recipient shall be entitled to claim repayment of funds from the sub-grantee, and the sub-grantee must accept the choice of law and settlement of disputes provision in the General Conditions of Norad’s grant agreement.
Grant recipients must ensure that sub-grantees have the necessary technical and administrative competence and capacity, including internal procedures to be able to meet the requirements of the grant agreement. Sub-grantees must also have the necessary contextual understanding and insight into the problems that the project seeks to address. Grant recipients must monitor this throughout the Support Period.
Even though funds may be sub-granted, the grant recipient is fully responsible for the grant towards Norad.

7.5. Updated Work Plans and Budgets

Grant recipients with multiyear agreements may be required to submit updated work plans and budgets during the implementation period (support period) of the project. This is particularly the case if the original application did not contain sufficiently detailed plans for the full implementation period.
The grant agreement will specify the periods that any updated work plan and budget shall cover and the deadlines for submission.
Norad will always formally approve updated work plans or budgets.
Grant Recipients have to submit an updated work plan or budget to Norad for approval if significant changes to the project are required. Grant Recipients are allowed to make certain changes without seeking Norad’s prior approval. Changes that require approval will be specified in the grant agreement.
In order to facilitate a quick review and approval process in Norad grant recipient are recommended to clearly mark the proposed changes in results frameworks, risk matrix and budgets through track changes, or through using ~~strike through~~ (to delete outdated information) and a new colour font (for the proposed revised information), or similar visualisation techniques. Proposed changes must always be explained (justified).

7.6. Annual Reports

The grant agreement will specify reporting requirements, including deadlines. Normally, an annual report is required for multiyear agreements.
Grant recipients are requested to report against the version of the budget and results framework (or similar) that have been annexed to the grant agreement. Should revised versions of the budget and results framework have been approved by Norad after the start-up of the project, the latest version must be used as the basis for reporting.
Completed research, evaluation and/or review reports listed in the knowledge management plan (when relevant) should be included in the annual report, together with the partner’s management response to the specific recommendations/findings.
Norad does not have a standard template for reports, however, there are guidelines for progress reports and final reports, see here.
Grant recipients are encouraged to prepare brief reports. Information may be presented in tables, graphs, charts, tables, photos and other reader friendly means, in addition to narrative text. Focus should be on deviations from plans. Norad would like to stress that deviations are not automatically seen as negative, since grant recipients are expected to adapt projects based upon changes in the context, learning and risks.
The report must include the latest approved results framework (or similar, in Annex B to the grant agreement), with data for actual achievements against indicators.
Reporting on risks: Grant recipients are asked to report on both risks affecting the achievement of results and on any unintended negative consequences of the project itself, including on the standard four cross-cutting issues (anti-corruption, women’s rights and gender equality, human rights, and climate and the environment). Describe how risks have been handled, the consequences of risks that have materialised, lessons learned and adjustments made in the project. Any new, major risks must be identified.
Grant recipients are furthermore asked to report on work undertaken to prevent financial irregularities and sexual exploitation, abuse and harassment.
The financial report must show how the grant was actually used, compared to the budget. Financial reports must:
- Include the project’s financial statement;
- Clearly present deviations from budget (in nominal terms and percentage) explained in line with the requirements in the grant agreement;
- Be signed by an authorised representative of the Grant Recipient and a financial controller, or equivalent.
To enable direct comparison between the budgeted and actual amounts, the financial statements must be structured in the same way as the latest approved budget, using the same level of detail (budget lines/items), time period and currency. In addition, the financial statement must specify:
- The accounting principles applied;
- actual financing/income and the source of this (the grant from Norad, own-contribution, other grant income, bank interest, etc.);
- actual expenses incurred in the reporting period or since the last financial report;
- actual expenses incurred from project start-up to the end of the reporting period;
- unused funds as of the reporting date.
Norad normally requires the annual financial statement of the project to be audited in accordance with ISA 800/805. The audit, which typically is commissioned by the grant recipient, must cover the total grant, also expenditure incurred by any sub-grantees. The grant agreement will specify requirements related to the audit: these requirements should be shared with the auditor prior to signing the agreement to ensure that the requirements can be met.
The grant agreement will specify whether a management letter (from the auditor) and a management response (from the grant recipient, outlining the planned actions to address significant findings in the audit) are required.
In addition to the project audit, Norad normally requires the audited financial statements of the grant recipient (organisation level) to be submitted for information purposes. In the interest of transparency, Norad’s grant shall be visible in the audited financial statements.
Reports shall, as a main rule, be submitted in Norwegian or English. Exceptions can be made if the language requirement acts as a barrier for local organisations, and if agreed with Norad in advance.
Approval of reports will be in writing, either in a letter or in the minutes from the annual (or other formal) meeting.

Note that grant recipient may be requested to share any documentation that is considered necessary to control whether the project is being implemented in accordance with the grant agreement. This includes procurement documentation, contracts, agreements with sub-grantees, etc.

7.7. Statistics and Transparency

Transparency ensures openness and access to information about Norad’s use of public funds. The Public Access Act contains stipulates when a document must be made available to the public, and when a document can be exempted from public access. Norad practices enhanced access, i.e. Norad strives, as far as possible, for documents to be made public also when such document could be exempted. Norad will regularly publish information about grants awarded and reports from supported projects on our website. Information provided by grant recipients may only be kept confidential where this is mandatory under Norwegian law.
Norway is a member of the OECD’s Development Assistance Committee (DAC) and is committed to annually report all official development assistance (ODA) and other financial flows to developing countries.
Grant recipients may be requested to assist Norad with reporting to OECD DAC through proposing a statistical classification for their project. Norad will then normally share a table, which grant recipients will be asked to fill out and return to Norad.
Please see Norad’s Statistical Classification Manual.
Larger projects (programmes) that are implemented across several countries and thematic sectors should be broken down into sub-units, in order to make the statistics as precise as possible. The overview that is submitted to Norad shall, as far as possible, display the distribution of funds per sub-unit for the whole agreement period.
The sub-unit structure (when relevant) shall normally be in place when entering into a grant agreement. A revised overview must be submitted to Norad during the project implementation period if there are deviations from the original overview exceeding 1 million NOK per sub-unit in a calendar year. The revised overview must be submitted no later than in November of the same calendar year.
To ensure transparency for Norwegian aid, we encourage all partners to report on their projects through the International Aid Transparency Initiative (IATI): IATI Standard - https://iatistandard.org/en/ Note that Norway's IATI identifier (applicable for all Norwegian aid) is NO-BRC-971277882. The IATI Activity ID is created by adding this identifier before the agreement number provided by Norad/UD, for example, “NO-BRC-971277882-QZA-24/0001”.
Norad will continue the practise established by the MFA’s Section for Humanitarian Affairs to report humanitarian aid flows to The United Nation’s Office for the Coordination and Humanitarian Affairs (OCHA) Financial Tracking Services.

7.8. Meetings

Norad distinguishes between formal and informal meetings. A meeting is considered ‘formal’ if the grant agreement stipulates that it should be held and/or if the purpose of the meeting is to obtain Norad’s approval of a report, updated plan or budget, or other more substantial changes to the project.
Most grant recipients will have a formal annual meeting with Norad. The agenda may include an exchange based upon the latest report, future plans for the project (including any adjustments to the budget and work plan), etc.
Norad would like to spend more time on strategic exchanges with partners, particularly in annual meetings with high level participation from the grant recipient. Certain administrative matters may rather be handled in bilateral meetings on technical level or through e-mail exchange.
Minutes will always be prepared for formal meetings. Often, the grant agreement will stipulate whether Norad or the grant recipient will draft the minutes. The minutes must be approved by both parties.

7.9. Project Visits

Norad reserves the right to visit the grant recipient and any sub-grantees. A visit can be conducted at any time by the unit managing the grant or by staff from other units in Norad, the Ministry of Foreign Affairs or an Embassy. A field visit may on occasion also be carried out by external experts. Both head offices, country offices, field offices and project sites may be subject to visits.

7.10. Changes to the Grant Agreement

The grant recipient must keep Norad informed, in a timely manner, of all circumstances likely to hamper, delay or otherwise significantly affect the implementation of the project, or its organisation.
Partners generally have flexibility to adjust projects to changes in context, in response to key learning, etc. However, they must request Norad’s prior approval for significant deviations from the application, budget or approved plans. The grant agreement will specify which changes are considered significant.
The grant agreement must be formally amended, through an addendum, in the following cases:
- an increase in the project’s income (including the grant amount from Norad);
- changes to several provisions of the agreement;
- changes to the project’s objectives;
- substantial changes to reporting requirements;
- substantial changes to the disbursement mechanisms;
- etc.
Addenda are considered a formal part of the grant agreement.
Less substantial changes may be agreed upon in formal meetings (and documented in the approved minutes of the meeting), or through written exchange (e-mail, letter). A formal addendum is, for example, not required for changes to the timing or agenda of an annual meeting, or to agree on an extension of the deadline for submission of a report.
If a no-cost extension is needed, the grant recipient must submit a formal request explaining the reasons for the delay in implementation. Norad may then request a revised work plan and budget. Unless key provisions in the agreement, such as the scope of the project, are needed, a no-cost extension does not per se require a formal addendum to the grant agreement.

7.11. Financial Irregularities

Norad has a policy of zero tolerance for financial irregularities (see the grant agreement for a definition of financial irregularities). Grant recipients are required to have systems to prevent and detect financial irregularities.
Grant recipients are expected to investigate and follow-up on any suspected financial irregularities in projects financed, in whole or in part, by Norway. The zero tolerance policy and requirements also apply to sub-grantees and sub-contractors.
In cases of suspected financial irregularities, grant recipient must immediately inform Norad’s Internal Audit and Investigations Unit.
Where relevant, Norad will claim repayment of misused funds. In certain cases, Norad may consider it acceptable for the funds to be returned to the project.

7.12. Sexual Exploitation, Abuse and Harassment

Norad has zero tolerance for inaction against sexual exploitation, sexual abuse and sexual harassment (SEAH).
Grant recipients must inform Norad’s Fraud and Integrity Unit immediately of any indications of SEAH within or related to the project that are credible enough to warrant an investigation. Grant recipients must also report indications of SEAH that may not be directly linked to the project but which could have significant impact on the partnership with Norad. This may include incidents that affect the grant recipient as an organisation, such as cases related to senior management or allegations which indicate more structural problems or patterns of misconduct (including large scale, repeated allegations, patterns of lack of action or inappropriate response).
Zero tolerance for inaction does not mean that we expect no cases of SEAH to occur. It means that Norad expects grant recipient to take all reasonable steps to prevent, detect and respond to SEAH and to adhere to the obligations set in the grant agreements.
The grant recipient is responsible for conducting the investigation of the actual cases of SEAH. When the investigation has been concluded, the grant recipient shall provide MFA/Norad with a report.

7.13. Visibility

Grant recipients are expected to acknowledge support from the Norwegian Government to the project in all publications and other written materials produced in relation to the project.
For publications, we ask you to include the Norway logo and this disclaimer:
“This publication has been produced with financial support from Norway. The contents of this publication are the sole responsibility of [grant recipient’s name] and can in no way be taken to reflect the views of the Government of Norway”.
At project sites, the grant recipient may choose to put up signboards, plaques or similar displays of information about the project. In this case, Norad is generally positive towards including the Norway logo. In addition, the phrase “Supported by Norway” can be added for further clarification.
Grant recipients shall not mark their property or visibility items, such as but not limited to office buildings, vehicles, clothing, umbrellas and pens, with the Norway logo.
If the project has been co-funded by several donors, including Norway, and the grant recipient is contractually obliged to acknowledge support of any of the other donors, the grant recipient shall also acknowledge the financial support from Norway. If the visibility requirement is related to property and visibility items, as mentioned above, written consent from Norad is required.
Grant recipients shall, as far as natural and practical, acknowledge the financial support of Norway in conferences, audio-visual productions, social media, press releases and media interviews.
Grant recipients may choose to acknowledge the financial support from Norway on their website(s).
For projects that are funded through Norway’s International Climate and Forest Initiative (NICFI) the NICFI logo shall be used together with the Norway logo (equal sizes).
Grants recipients are asked to at all times take security concerns into account when deciding on the level of visibility activities in a project.
If colour printing is available, the logo should always be printed in colour.
When it is of paramount importance for external actors to identify and contact Norad, partners can add text to the communication products such as at the end of a press release.
You will find the Norway logo here: norway.no/logo
and the NICFI logo here: https://www.nicfi.no/about-us/media/

Published 7/15/2024

Updated 7/15/2024