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Effective planning is key to ensuring clear relevant goals are established and achieved, thus building resilient financial management systems
Planning involves understanding and documenting the expected role of the finance function. This includes appreciating the strategic role that the finance function can play, as well as ensuring the recording and reporting of day to day transactions.
Having recognised the role of the finance function, planning involves ensuring that the expected outputs are reflected in the structure of the department, as well as identifying the numbers of peoples and the skills needed to perform this function.
Through a good understanding of a countries’ national priorities, UNDP is able to work closely with governments and stakeholders to document clear goals. These goals are a key step in identifying and planning for robust financial systems.
In Tajikistan, UNDPs approach to capacity development is characterized by flexibility, and by a deliberate process of testing, feedback and learning. Through a process of continuous improvement, supporting an increase in the financial responsibilities of a number of implementing partners, UNDP conducted assessments, trainings, study tours and the development of business processes to address shortcomings. This iterative process has led to significant progress among key government partners that were previously managing only a few thousand US dollars per year, to now managing hundreds of thousands.
UNDP has assisted health programmes to conduct a financial analysis to identify the optimal financial management structure required in Africa, Asia and the Caribbean.
- UNDP has strong experience assisting countries and projects to plan health programmes and systems through
- effective decisions,
- access to experiential knowledge,
- technical guidance and
- innovative tools/methodologies.
- UNDP has developed a capacity assessment tool which helps to identify areas for strengthening in planning for health systems
- UNDP works with government health systems as well as Civil Society Organisations to development milestones and indicators, including training needs to measure improvements in financial planning
UN agencies have developed a risk-based, harmonised approach to cash transfers (HACT). This framework identifies implementing partner (IP) capacity needs and develops capacity with assistance from UNDP and other development partners, as core to managing risk.
Identification of and planning to address IP capacity gaps is an important element of the Framework. The results of a HACT assessment help focus future capacity development activities in key thematic and mandated areas of development, and on developing the financial management capacity necessary for any IP. The capacity development initiatives identified during the IPs micro assessment process can be incorporated in the existing standard UNDP Capacity development framework.
Suggested Capacity Development Indicators
UNDP has utilised clear indicators to monitor improvements in financial planning
- The approved organogram reflects the current and expected needs of the finance department
- An approved strategic plan is available, and all staff are aware of its contents
- % of staff required in place.
- % increase or decrease in Financial Management staff turnover per year.
- % of staff with development plans prepared and approved.
- % of staff who are on schedule with their individual staff development plan.