FINANCIAL MANAGEMENT TRAINING BY UN WOMEN
TRAINING ON FINANCIAL MANAGEMENT BY UN WOMEN ON 8TH DECEMBER, 2016 BOLTON WHITE HOTEL -ABUJA.
INTRODUCTION
The meeting started with the welcome remark by Aijaz Qureshi, UN Women Operations Manager, and further into self introduction by participants.
The training was facilitated by Matthew Kolawole Loremikan, Finance Specialist – Head of Finance Operations & Field Support Unit, UN Women HQ. He began with defining Financial Management as the main component of any programme or project. Below is a narrative on the contents of the training session.
SUMMARY
Procedures
- Agreements (Types/ Partnership): understanding the terms and conditions and the concept of the agreement.
- UN Women Financial Management Cycle: A guide in any financial transaction that is being made.
- Advance Requests and Reporting Requirements: FACE form and ICF (Internal Control Framework). The ICF guides the internal operations of UN Women; assuring UN Women that its partners work accordingly.
- Supporting Documents: proof of expenditures made by partners
- Year End Certification: Report on the balance of money gotten from UN Women by the end of the year.
UN Women Project Implementation
A proposal is sent out by UN Women and filled by the partners portraying to be the best team for the execution of the project. Most of the UN Women projects say 99% come under the Direct Implementation (DIM); where UN Women work with grass roots organizations engaging the likes of the civil society organizations in order to have a better impact of the project implementation.
NGOs, government agencies, UN, and UN Women though referred to as partners are also seen as Responsible Parties (RP) because UN Women are the ones effectively implementing the project.
Project Implementation Modalities
UN Women enters into standard agreement with various Implementing partners and Responsible partners in accordance with annual work plans/ strategic notes and project documents/product. Product is the final
Implementing Partners: Government entities, non-UN inter government organizations, NGOs, UN agencies, UN Women (Direct implementation).
Types of Agreement
- Standard Project Cooperation Agreements (PCAs): cooperation between UN Women and IPs mostly NGOs. It consists of responsibilities of parties, project dates, amendments and annulments.
- Letters of Agreement (LOAs) with the government entities
- Inter Government Organization and Inter-Agency letters
Note: All terms and conditions should be properly read to understand all financial obligations.
UN Women Cash Modalities
- Direct Cash Transfers to IPs for obligations and expenditures to be made by them in support of activities agreed in the annual work plan (AWPs). Monies are paid in trenches (quarterly or as agreed).
- Direct Payment to Vendors for obligations incurred by the IP in support of activities agreed in the AWP. Payment is done by UN Women. This is done for IPs that don’t have transfer capacities, where the banking system has collapsed or there are serious security issues.
- Reimbursement to IPs for obligations and expenditure incurred. For instance, obligations done by large NGOs: the Red Cross, WHO, e.t.c.
- Direct Agency Implementation through which UN Women makes obligation and incurs expenditure.
UN Women Funds Management Cycle
Reporting is done every three months. For instance, money gotten by February is reported for by the end of May. The cycle is represented below:
The reporting process must always be done even when no activities were carried out.
UN Women’s Standard Request and Reporting Forms
- FACE form: Funding Authorization and Certificate of Expenditures. It does three things, releases funds, authorizes the expenditures and certifies what was spent and reports on the activities of the previous quarter.
- Itemized Cost Expenditure form (ICE form)
- PCA/LOA
- Covering Letters: narrative of how activities laid out in the PCA was carried out.
The FACE form has three main sections; Header area, Body area and Certification area. Other areas are the Budget and reporting areas.
PRACTICAL IMPLEMENTATION
The presentation took a more practical aspect where a case study project was used in filling the FACE form. Before and during this session, several questions were asked. Some of which are shown below:
- Is the FACE form a single/on-off form?
ANSWER: The FACE form is a rolling document until the end of the project.
- Presentations seemed so easy but in actual sense it’s quite difficult. If project is for 3.5 months, how is reporting done?
ANSWER: Report at the end of the three months and finally at the end of the project. Even if the project is for two months, reporting is done immediately after receipt of funds and the following month to keep the UN Women abreast of project’s progress.
- How do you amend a reported expenditure?
ANWER: There should be a constant dialogue with the UN Women operations manager of any change that is intended. You do this so as to stay in line with the terms and conditions. So the best thing is to get an approval for amendment before reporting.
- Why not make provision for emergencies and call them “Sundries” to avoid partners using their personal funds?
ANSWER: Sundries cannot be bought, so cannot be approved. Anything to be approved must be specified.
- What happens if a budget though not exceeded had a line or more modified?
ANSWER: Within any activity line partners have the discretion to exceed 20% of those lines but anything beyond this, the program manager (UN Women) should be consulted for approval.
- In line with the above question, can amendments also cut across different activities?
ANSWER: Yes, as long as it remains within the budget.
- What happens in a situation where you spend more than the budget?
ANSWER: Spending more than the budget is out of the question. An approval must be gotten for any amendment before executing a project.
UN Women NEX Audit
Documents required during an audit exercise:
- Project Documents
- Annual Work Plan AWP)
- Revisions to AWP (if applicable)
- All budget revisions
- Project Cooperation Agreements/ Memorandum of Understanding
- Quarterly Funding Authorization and Certificate of Expenditure (FACE form)
- Confirmation of project Atlas figures
- Reconciliation between the FACE forms and Atlas figures
- Progress reports, other review reports
- Schedule of direct payments (if applicable)
- Invoices relating to direct payments (DP)
- Confirmation of balances of funds held by responsible/implementing partners
Common Audit Findings
- Self Generated cash receipts such as Salary payments
- Payment on Performa invoice
- No bank reconciliations
- No procurement process (missing documentation)
- No proper selection process –open selective process
- Excessive use of cash
- No proper filing system
- Approving own payment
- Recipient signs as receiver
- No asset registers
CONCLUSION
As an NGO that UN Women has decided to partner with it is important that we get it right from the first day. In all our doings we should always be ready for audit which could happen even before the project ends.
The whole session was interesting, interactive and provided a great learning opportunity of the processes and procedures of the UN Women.
Organisations
National Identity Management Commissions
Federal Ministry of women Affairs
Adamawa state Ministry of Women Affairs
Zamani Foundation
Peace Development Centre
Centre for Peace Advancement in Nigeria (CEPAN)
UN Women
WILPF Nigeria
National Centre for Women Development
IANSA Women Network – International Action Network on Small Arms