About NSP - How Funds are Distributed

The NSP builds capacity at the community level to enhance the competence of CDC male and female members in terms of financial management, procurement, technical skills, and transparency. Once the CDC has been elected, its members follow an inclusive and innovative model approach to developing a Community Development Plan (CDP). Formulating a CDP is an exercise that allows the CDC to map out its development requirements and prioritize them. Subproject proposals are then developed to apply for funding.

The NSP provides direct Block Grant transfers to a bank account established by the CDCs to support rehabilitation and development activities planned and implemented by the elected CDCs. The funding takes the form of Block Grants which are calculated at US$200 per family with an average grant of US$ 27,000 and maximum of US$ 60,000 per community. Portions of the Block Grant are released for procurement and phased implementation of the approved subproject(s). Communities must contribute a minimum of 10 percent of the total project costs in either labour, funds, or materials.

CDCs are required to have a bank account with a registered bank where all the community funds are deposited. The account is opened with three signatories (the chairperson, deputy-chairperson and treasurer). Each withdrawal of funds from the bank account requires the signature of four CDC members including the chairperson, deputy-chairperson, treasurer and one other CDC member; at least one signatory must be a female CDC member.

CDCs must maintain records of income and expenditure for cash and in-kind contributions. And make their financial records shall be available for public inspection at all times. The government may ask at any time for an external/social audit of a CDC's financial records. The CDC's financial records shall be disclosed for public inspections on regular basis.