Example – Detailed Capacity Development

 

Financial Management

 

  • Human Resources
  • To take on the future PR role recruit the financial manager working exclusively on the Global Fund grant, with a selection panel in place to assess the skills, experience and qualifications against the TOR
  • Oversight of the recruitment of the financial manager by UNDP
  • To identify and apply appropriate segregation of duties needed for approvals and to increase oversight
  • Financial Management and Procurement Manuals
  • Harmonise financial and procurement manuals
  • Develop and roll out internal procedures and templates (for Budgeting, accounting, levels of authority, audits, taxation, asset management etc.)
  • Develop and disseminate SR financial manuals, procedures and templates to SRs
  • Roll out and support financial management procedures and templates in SRs, this will start with a pilot with one SR.
  • Once pilot completed scale up to the remainder of the SRs
  • Budget Systems
  • Establish a system to review and update SR budgeting
  • Design and introduce a system for monthly management reports for financial monitoring internally and of SRs and decision making
  • Future PR to develop a system for budget variance analysis and corrective action for SRs
  • Future PR to design and implement a systematic approach for fair cost allocation
  • Future PR to ensure SRs adopt a systematic approach for fair cost allocation
  • Accounting systems and software
  • Review the accounting software to ensure it meets the minimum requirements for financial reporting including; transaction details; comparison of budget and actual expenditures; expenditure reports analysed by SDA, GF cost categories, and implementer; tracking disbursements to SRs and cash balances; and bank reconciliation statements
  • Install and manage accounting software in the future PR
  • Install and manage accounting software in the SRs
  • Provide training and support on accounting software to future PR and SRs
  • Run the accounts software in the future PR to generate reports in parallel with the current system
  • Run the accounts software in the SRs to generate reports in parallel with the current system, this will start with a pilot with one SR.
  • Once pilot is completed scale up to the remainder of the SRs
  • Switch over to using accounts software managed by the future PR
  • Future PR to establish system to back up accounting data and storing offsite
  • Future PR to ensure SRs have system to back up accounting data and storing offsite
  • Future PR to establish system to monitor if SRs are up to date with income tax remittances
  • Disbursements
  • Future PR to develop a cash forecast information template for SR disbursements  requests and provide training.
  • Through the accounting software introduce a system for tracking disbursements of SRs (advances, cash balances and expenditures)
  • Treasury System
  • Future PR to check that SRs still have separate bank accounts for the GF grant
  • Future PR to ensure sound management of petty cash by SRs
  • Future PR to introduce double signatures for cheques / transfers
  • Future PR encourages SRs to introduce double signatures for cheques / transfers
  • Future PR to prepare monthly bank reconciliation statements that are reviewed and approved
  • Future PR encourage SRs to prepare monthly bank reconciliation statements
  • Future PR should introduce payment vouchers which will have details of payments, Chart of Account (COA) with project to be charged and signatures of the preparer, officer certifying payment and officer approving payment.
  • Future PR should also ensure that payment vouchers are being used by SRs.
  • Reporting
  • Through the accounting software introduce future PR reporting in line with GF requirements including cost categories, SDAs and SRs
  • Through the accounting software introduce main SR reporting in line with GF requirements including cost categories, SDAs and SRs, this will start with a pilot with one SR.
  • Once pilot completed scale up to the remainder of the SRs
  • Purchasing system (for non-health products)
  • Future PR adopt the purchase order system for accountability, tracking of commitments and ensuring specified goods and services are received
  • Future PR encourages SRs to adopt the purchase order system for accountability, tracking of commitments and ensuring specified goods and services are received
  • Future PR to strengthen system of contract management with sufficient description of the work to be performed.
  • Asset Management System
  • Future PR to check that SRs have a system of adequate safeguards to protect assets
  • Future PR to ensure that SRs have periodic physical inventories of fixed assets and stocks that are reviewed and compared with the fixed asset register and inventory list
  • Future PR to ensure that SRs insure their assets
  • Future PR to ensure that SRs adopt and implement sound procedures for asset and inventory management