How can NGO finance staff efficiently support an NGO project?
Posted on 09 January, 2024 at 09:40
Non-governmental
organizations (NGOs) often work on complex and challenging projects that aim to
improve the lives of people and communities around the world. These projects
require careful planning, implementation, monitoring and evaluation to ensure
they achieve their intended outcomes and impact. However, none of these
activities can be done without adequate financial resources and management.
NGO finance staff
play a crucial role in supporting NGO projects by ensuring that resources are
mobilised, allocated, spent and reported in a transparent and accountable
manner. They also help to ensure that the project is compliant with the donor's
requirements and regulations, as well as the NGO's own policies and procedures.
By doing so, they contribute to the sustainability and credibility of the NGO
and its project.
However,
supporting an NGO project is not an easy task for finance staff. They face many
challenges and pressures, such as:
- Working with
limited and unpredictable funding sources
- Managing
multiple budgets and currencies
- Dealing with
complex and changing donor rules and expectations
- Communicating
and coordinating with different stakeholders, such as project staff, partners,
beneficiaries and auditors
- Balancing the
needs of the project with the needs of the organization
- Keeping up with
the latest trends and best practices in financial management
How can NGO finance staff
overcome these challenges and efficiently support an NGO project?
Understand the
project's goals, objectives, activities and indicators. This will help you to
align your financial planning and reporting with the project's logic and
results framework. It will also help you to identify and anticipate the
financial needs and risks of the project. budget is a key tool for planning,
managing and monitoring the financial resources of the project. It should
reflect the project's activities, outputs and outcomes, as well as the donor's
guidelines and restrictions. It should also be updated regularly to reflect any
changes or adjustments in the project's scope or context.
Establish clear
roles and responsibilities for financial management within the project team.
This will help to ensure that everyone knows what they are expected to do and
how they are accountable for their actions. It will also help to avoid
duplication or confusion of tasks and improve communication and coordination
among team members. Also, implementing sound financial policies and procedures
for the project. These should cover all aspects of financial management, such
as accounting, procurement, cash flow, internal controls, audits, etc. They
should also be consistent with the donor's rules and regulations, as well as
the NGO's own standards and values. They should be documented, communicated and
enforced throughout the project cycle.
The use of
appropriate financial tools and systems for the project which should enable you
to record, track, analyse and report on the financial transactions and
performance of the project. They should also be user-friendly, secure, reliable
and compatible with the donor's requirements and formats. They should be
reviewed and updated regularly to ensure they meet the needs of the project.
Providing timely and accurate financial reports for the project should help
demonstrate how the funds have been used efficiently, effectively and ethically
to achieve the project's results. They should also comply with the donor's
reporting schedule, format and content. They should be supported by relevant
documents and evidence, such as receipts, invoices, contracts, etc.
Reporting
and seeking compliance to ensure project success.
By building trust
and rapport with the donor will help you to maintain a positive and
constructive relationship with the donor throughout the project cycle. It will
also help you to negotiate any issues or challenges that may arise in relation
to financial management. You can do this by being responsive, transparent,
accountable and professional in your communication and interaction with the
donor.
Seek feedback and
learning opportunities for improvement. This will help you to identify what
works well and what needs to be improved in your financial management
practices. It will also help you to enhance your skills and knowledge in this
area. You can do this by soliciting feedback from your colleagues, partners,
beneficiaries and auditors; participating in training courses or workshops;
joining networks or communities of practice; reading publications or blogs;
etc.
By following these
tips and suggestions, NGO finance staff can efficiently support an NGO project
by ensuring that its financial resources are managed in a way that maximizes
its impact and value for money.