Guidance

FCDO Programme Operating Framework: overview

Updated 12 July 2024

1. Introduction

Excellent programme delivery is crucial for FCDO to deliver its UK government objectives and is expected by Cabinet Office. Whether the work is on National Security Council (NSC) priorities, the UK’s foreign policy priorities or eradicating poverty in a complex and fragile world, delivering results and addressing the underlying causes of poverty and conflict requires programmes that are flexible and designed to respond to (and influence) the local context.

The Programme Operating Framework (PrOF) provides the basis in which programmes and projects on the FCDO’s departmental accounting baseline should be managed to ensure high standards and meets central government expectations for international programming through alignment with:

• Infrastructure and Project Authority framework
• best practice as set out in the: The Orange Book: Management of Risk, Principles and Concepts (PDF, 472 KB)
• HM Treasury green book: Managing Public Money (PDF, 1.5 MB)
• HM Treasury guidance on business case approvals (PDF, 1.3 MB)

There are 10 programming principles to guide staff in designing and delivering high-quality programmes and presenting to external implementers how the FCDO is committed to delivering internationally.

There are 29 mandatory rules, clearly explained with an expanded rationale to assist teams in applying proportionality to their programmes and providing a sense of empowered accountability to teams.

The framework is structured around the FCDO project/programme management cycle. It sets out the principles, rules, roles and responsibilities, governance and also guidance and best practice. It sign-posts where you can obtain further advice and support. It provides the rules and standards at the individual project or programme level, linking and integrating the various stages in the cycle. The framework aims to empower teams to confidently take risk-based approaches to programme delivery – emphasising that programme teams are the experts in the context of their programme and should therefore lead in creative design and delivery, supported by this clear set of mandatory rules.

FCDO aims to ensure that there is a portfolio focus to drive better ways of working. It requires us to make more explicit decisions about our programme portfolios, based on our analysis of the context, and conscious decisions on strategic priorities – as opposed to doing things incrementally, one project, programme or influencing initiative at a time.

2. Programme Operating Framework principles

The programming principles have been mapped to the rules which follow – so when thinking about what the rule says, Programme Teams should also think about how to follow the rule by reflecting on the associated principles.

How we lead and behave towards each other

Collaborative

We work and learn together to help and support each other across the organisation and build capability. We build strong working relationships with partners to deliver results, including formal collaborations on knowledge sharing as a risk mitigation strategy.

Honest

We speak truth to power. We foster an open and honest culture, encouraging challenge and the flagging of risks. We escalate risks and issues which exceed programme appetite and ensure we listen to concerns.

How we make decisions

Professional

We aim to deliver maximum impact and value for taxpayers’ money. We follow the Civil Service Code and HM Treasury’s guidance on Managing Public Money and we get the basics right. We are knowledgeable, experienced and commercially astute - and our delivery teams hold our partners to account. FCDO sets the standards for international diplomacy and development best practice.

Ambitious

We trust our knowledge, skills and experience. We draw on these to boldly propose transformational programmes in challenging and high-risk environments. We openly discuss the risks with ministers and colleagues.

Transparent

We honour the rights of the British taxpayers, beneficiaries, and constituents in the countries where we operate. Their right is to know what we’re doing, why and how we’re doing it, how much it will cost and what it will achieve. Where total transparency is not possible due to heightened sensitivity, FCDO will be clear and justify our rationale for this decision.

How we get the job done

Innovative and agile

We deal proactively with uncertainty and complexity, identifying where it exists and building in ways to respond to and manage it. We are ready to adapt existing and pioneer new design and delivery methods, as well as pioneer new ones. We are outcome focused and prepared to flex based on evidence.

Responsible and accountable

We are responsible for delivering against ministerial and UK government priorities, with a clear understanding of our role and the role of others in pursuing government policy. We are accountable for rigorous programme design, managing programme risk and performance effectively, whilst maximising benefits and avoiding doing harm. Teams will ensure the information used in our programmes is from trusted sources and consider the risks of dis-and-misinformation. As the people closest to the detail, beneficiaries, programme constituents, and the FCDO programme teams are empowered to take decisions within their projects once all core rules are complied with.

Context-specific

We draw on available evidence and listen to the views and experiences of the breadth of our stakeholders (especially beneficiaries and programme constituents), This enables us to understand the strategic, social, political, economic and operational environments within which we work, influencing the political context and UK government’s international policy priorities.

Evidence-based

We plan rigorously using evidence to create a strong foundation on which to base change. We are constantly reviewing and where evidence gaps exist, we take steps to fill them, testing new approaches and applying our learning. We monitor, record and report progress through the appropriate channels including ministers, as necessary. If success no longer seems achievable, we are prepared to flex or initiate closure.

Proportionate and balanced

We make proposals and take decisions that are proportionate to the situation, the information available and level of urgency and escalate where appropriate. We work in planned, manageable stages, pausing to assess delivery and ensure continuing viability at each stage of the project.

3. Programme Operating Framework ruleset

This section sets out the mandatory rules for FCDO programme delivery. Each core rule (listed below) has an associated one-pager, which provides the information teams need to understand the rule and how to implement it (contained in the full PrOF).

Operating Framework and strategic alignment rules

1. Portfolios, programmes and the projects within them, must be consistent with all relevant UK laws, legislation and guidance.  The UK’s obligations under international law, including  human rights and  humanitarian law, should be fulfilled, and reputational risks must also be considered.

2. All transactions reported as Official Development Assistance (ODA) must meet the agreed OECD definition of aid, principally that the main objective must be to promote the economic development and welfare of an ODA eligible country.

3. All programmes and projects must align with FCDO and HMG policy priorities and business objectives.

4. All programmes must have a named Senior Responsible Owner (SRO) and Programme Responsible Owner (PRO).

5. All programmes must align with the Paris Agreement and assess climate and environmental impacts and risks, taking steps to ensure that no environmental harm is done. Any International Climate Finance (ICF) programmes must identify and record ICF spend and results and ensure that they have applied the correct DAC gender, disability and Rio markers.

6. All FCDO programmes and projects must be as transparent as possible with taxpayers, our partners, host countries and programme constituents (beneficiaries). Programme documents and decisions must be saved correctly for publication. Sensitive information must be treated appropriately.

Programme design and approval rules

7. At an early stage of design, an outline of the programme’s intended outcomes, operating context, activities, budget and high-level risks must be set out and approved at the appropriate level, using the concept note template. All concept notes over £5 million must be approved by a minister (or the Foreign Secretary if the minister decides to escalate).

8. All programmes must be appropriately designed and have a suitably approved business case (BC) in place prior to the start date (and for the full duration), using the BC template. Material changes and extensions to this design must be formalised and approved in a BC addendum. Prior HM Treasury approval is required for any announcements involving spend if related to a business case or a package of business cases, yet to be developed, totalling £40 million or above in any one year or over £100 million across the lifetime of the spend period. Only crisis programming should include Internal Risk Facilities/contingency funds, and these should be limited to a maximum value of 10% of a programme’s proposed lifetime value.

9. All programmes (and policies) must consider and provide evidence on how their interventions will impact on gender equality, disability inclusion, LGBT+ and other equality considerations.

10. For any programmes which may involve novel and contentious financial arrangements, teams must engage with the HMT Engagement Team and Financial Accounting at concept note stage.  And any programmes carrying significant diplomatic, financial or reputational risk must consider whether the Foreign Secretary should approve (to be escalated through the relevant minister).

11. All programmes must follow FCDO’s branding guidance, and appropriately document their approach to external communications.

12. Digital elements of programmes (for example, text messaging, cash transfers with a digital angle, websites and databases) must be reviewed at the earliest possible stage in the process by FCDO’s Portfolio Assurance and Controls Team. Most also require assurance from the internal Portfolio Assurance Forum (PAF).

Mobilisation and procurement rules

13. FCDO can only pay for costs that are incurred after signature and between the start and end date stated in a funding agreement or contract. The duration and value of all funding arrangements must be fully covered by an approved budget (for example, business case or project proposal) and must use the latest funding arrangement templates or frameworks.

14. The tender and awarding of new contracts and amendments must   
comply with the Public Contract Regulations 2015 with an approved budget which must cover the full period of the contract and any amendments or extensions. Relevant approvals must be in place as detailed in associated guidance. All contracts must have a designated, appropriately accredited Contract Manager and comply with Cabinet Office transparency requirements. Contracts must be effectively managed proportionate to their complexity, risk, value and opportunity throughout the life of the programme.

15. FCDO must have a suitable, proportionate and documented assessment of any partner who is intended to be the direct recipient of FCDO funding. This is to determine if they have the capacity and capability to manage programme funds and deliver the programme or project objectives in a way that provides value for money.

16. Staff must declare any conflicts of interest, or offers of gifts, advantages or hospitality, as soon as they arise.

Programme management and delivery rules

17. Risk throughout the life of a programme or project must be managed in line with the agreed risk appetite using appropriate controls.

18. Any suspicions and/or allegations of fraud, terrorist financing, sanction violations, money laundering, bribery, corruption, sexual exploitation, abuse and sexual harassment (SEAH), by any person or any partner (including downstream delivery partners) connected to a FCDO programme or project, must be immediately reported to the FCDO Fraud and Safeguarding Investigation Team in Internal Audit and Investigations Directorate.

19. All projects, programmes and portfolios must have sufficient monitoring in place to provide performance and financial oversight, manage risks and support decision-making at appropriate levels.

20. All programmes must undergo a formal review of progress and effectiveness at regular intervals (annually, as a minimum, and after completion) using an agreed results framework or logframe and the appropriate tools and templates.

21. Any programme or project that demonstrates sustained underperformance must be subject to formal improvement measures. Following that, a decision will be taken at the appropriate level to either continue, restructure or close it.

Financial management rules

22. Budgets must be accurately profiled and forecast, regularly reviewed and updated as necessary.

23. Funds must be paid only to the intended recipient, and be used exclusively for the purposes formally agreed.

24. No payment can be made in advance of need, ie before the funding is required, to enable activities to proceed.

25. Any ODA programme foreign currency commitments above £50,000 must be agreed in advance by the the Head of Financial Accounting and Policy. Below £50,000 must be agreed by the Director or Head of Mission.

26. FCDO staff roles charged to a programme or project budget (except for UK Integrated Security Fund) must be essential for the delivery of a programme, approved in line with PrOF Rule 8, and offer better value for money than an outsourced alternative. Details must be notified to Centre for Delivery and Strategic Finance as soon as a project-funded role is being considered.

27. A complete, accurate and up-to-date inventory must be maintained for all programme assets owned by FCDO. These assets must be disposed of in a way that represents best value for money, with a clear record of decision making and appropriate approval of transfer.

28. The write-off of costs related to losses or fruitless payments, including assets lost, stolen or damaged, must be approved at the appropriate level.

Programme closure rule

29. All programmes and projects must be closed effectively and responsibly, even when closing early. Outstanding project payments must be made, liabilities extinguished, and underspend returned to FCDO within 18 months of the programme’s end date. All required audited accounts and financial statements covering the full duration of every project within the programme must have been received before the programme can be closed and archived.

4. Programme Operating Framework roles and responsibilities

There are several people involved in programme delivery including core programme roles. These include the Head of Mission or Director who hold the overall Portfolio Senior Responsible Owner and Budget Holder roles. In addition there are 2 Roles that are mandatory for every programme – the Senior Responsible Owner (SRO) and the Programme Responsible Owner (PRO).

The SRO is accountable for a programme meeting its objectives, achieving its outcomes and making the expected contribution to portfolio-level outcomes Country/Business Plans and the FCDO as a whole.

The SRO for a programme is responsible for strategic oversight of the programme(s) they are accountable for, holding the programme team to account in ensuring effective delivery, and providing overall leadership, decisions, and direction.

SRO role accountabilities

The SRO is expected to ensure:

• there is clarity in the post/ department and programme team about the policy objectives and country/business plan outcomes the programme is expected to contribute to, and how
• the capability and capacity needed to manage the programme are identified in the Business Case, and the complexity in the programme is managed in a way that reflects the expertise and experience available to manage it
• there is a clear understanding of the programme risks, and an agreed risk appetite
• any security concerns or sensitivities in the programme are understood by the team, with clear processes for managing them
• FCDO’s expectations of implementing organisations are clearly communicated and reflected in partner funding arrangements
• all ODA spend is compliant with the Official Development Assistance rules and all spend represents value for money
• any significant concerns about feasibility, value for money, or risks that crystallise or exceed the agreed appetite, are escalated through the agreed channels
• the strategic direction of the programme remains aligned with any changes in country/business plan priorities

The PRO is accountable for driving the delivery of programme outcomes within agreed time, cost and quality constraints.

The PRO is responsible for leadership within the programme team. The role combines technical, programme management and relationship management responsibilities. The balance of skills required is likely to look different at various stages of a programme, so the role could be fulfilled by an adviser, a programme manager or another member of the programme team.

PRO role accountabilities

The PRO is expected to:

• ensure a clear theory of change, where appropriate, that links the programme activities to the intended outcomes and impact, recognising where there is uncertainty and an adaptive approach might be needed
• drive delivery of outputs and achievement of the outcomes set out in the programme’s approval documents (concept note, business case), within the agreed time, cost and quality constraints
• design and adapt programmes to changing contexts, based on learning and feedback, including from engagement
• ensure the programme is implemented in compliance with the PrOF Rules
• take stock, at regular intervals, on the continued relevance of the programme, taking action to improve, restructure or close where appropriate
• ensure that the main risks associated with the programme are clearly articulated in the Business Case and documented in a risk register, that proportionate mitigating actions are implemented to reduce the risks, that regular monitoring of risks and mitigations is conducted and documented and that risks are promptly escalated where they are rated severe, exceed the agreed risk appetite or cannot be resolved by the team without wider support

5. Programme Operating Framework life cycle

A Programme is made up of projects and activities.

• an FCDO project is a set of discrete, time-bound interventions designed to produce a set of outputs. Projects may be managed by the FCDO directly (through direct purchase of goods and services), but will more often be managed by external partners under a funding arrangement
• FCDO activities are everything making up a programme that are not projects. This may include discrete activities undertaken by others in support of the programme – for example specific pieces of monitoring or operational research, or audits

The design, delivery and assessment of programmes and projects follows a common process or cycle. The life cycle does not exist in isolation. The programmes and projects within the cycle are informed and shaped by higher-level strategic objectives, across a portfolio of programmes and policy priorities. A strategic planning process defines programmatic themes and objectives, which projects and programmes should support.

Stage 1: Definition

This stage is about understanding the strategic context, main policy issues and country/business plans that are driving programme objectives. This can include outlining proposed interventions that might help achieve those objectives in a concept note, and once approved, undertaking a robust design process, culminating in an articulation of the detail of interventions in a business case (or equivalent). This will cover the strategic context, evidence-based appraisal of intervention and delivery options, and a realistic assessment of risks, opportunities, and management requirements. At this stage, it is important to think about delivery plans, monitoring, evaluation and learning needs, and anticipated results.

Stage 2: Mobilisation

This stage is about putting in place delivery mechanisms for the programme and any accompanying monitoring, evaluation and learning interventions. This might be in-house resource, a Grant in response to a proposal from a non-profit organisation, a MoU with a multilateral or government partner, or initiating a competitive bidding process.

This is also the stage where we develop relationships with partners. This includes clarity on roles, responsibilities, accountability, key stakeholders and management of finances and risks. Monitoring frameworks are also finalised, ensuring there is sufficient flexibility within interventions to adapt to changes in context and knowledge.

Stage 3: Delivery

This stage covers the delivery of programmes and projects (activities and outputs), managing implementing partners and adapting interventions during delivery if the context and circumstances affecting the intervention change. Management actions range across monitoring finances, risk, issues, progress, and results, engaging with stakeholders, and checking assumptions, ensuring continued relevance, strategic alignment, and value for money. In addition to ongoing monitoring and learning, an annual performance assessment provides an opportunity to take stock and take action to ensure the intervention is on track to achieve its intended outcomes. During this stage it is important to make timely and evidence-based decisions around the continuation, closure or extension of the project or programme.

Stage 4: Closure

This stage is about ensuring all agreed outputs have been delivered and outcomes achieved, with any outstanding issues resolved. This includes producing completion reports, reviewing and evaluating performance and results and assessing outcomes, impact and value for money against strategic objectives. This stage is essential for bringing together lessons that can be shared with programme teams and applied to other existing and future programmes and projects. All programmes must be closed effectively and responsibly, even when closing early.

6. Programme Operating Framework governance

The FCDO delivers the Government’s policy as set out in documents such as the Integrated Review (and refresh), the FCDO’s Single Departmental Plan, thematic strategies and business and country business plans.

The FCDO is accountable to Parliament through the Permanent Under-Secretary (PUS) as the Principal Accounting Officer, who is personally responsible for the stewardship of the resources within the organisation’s control, including propriety, selection, and appraisal of programmes, value for money, management of risk, and accurate accounting. As the additional Accounting Officer, the Second Permanent Under-Secretary manages the FCDO’s development programme portfolio, including all programme expenditure related to Official Development Assistance.

The Foreign Affairs Committee (FAC) and the International Development Committee (IDC) scrutinise the FCDO’s spending, administration, and policies.

The National Audit Office and the Independent Commission for Aid Impact provide independent scrutiny and assurance to Parliament on our work.

The FCDO’s internal policies and priorities are set and governed by the Supervisory Board, the Management Board, and its subcommittees. Internal Audit and Investigations Directorate provides the Accounting Officers with assurance via the Audit and Risk Committee.

Choices about what we do and where we do it are considered and made by ministers through periodic Spending Reviews and Resource Allocation Rounds, through which budgets are set.

These decisions are reflected in business/country plans that translate the outcomes of resource allocation decisions into detailed plans. Individual programmes are designed and implemented to deliver the priorities and results set out in National Security Council strategies, thematic strategies and business/country plans, ensuring value for money for UK taxpayers.

Funding: ODA, non-ODA and mixed

In a typical year, over half of the FCDO’s Gross Public Expenditure tends to be spent on bilateral aid (including debt relief, humanitarian assistance and programme funding). The rest goes to international finance and international relations, most as core funding to multilateral organisations (including support to the EU, World Bank, UN and other related agencies.

FCDO programme can be fully ODA funded or non-ODA funded but there is also examples of blended ODA and non-ODA programming, including work funded from the International Programme, UK Integrated Security Fund and the International Climate Fund.