Financial management refers to the efficient and effective management of funds in such a manner as to accomplish the objectives of the organization. Sound financial management is needed for NGOs because they need to be accountable to the donors and the communities they serve. Other benefits include eliminating fraud and theft, making productive decisions, securing the future (sustainability), achieving project objectives, enhancing the organization’s credibility and strengthening fundraising efforts and so on.
One of the ways to improve the financial management is to look at an organization’s policies and procedures. The common problems NGOs have related to the policies and procedures are that the top management developed them and the implementers seldom have a proper orientation. Also there is a lack of revision or updating them to include emerging requirements, and some may not be applicable for real practice. Building Community Voice (BCV), one of VBNK’s partners is having similar issues.
To help overcome those issues, VBNK’s Consultants provide technical support through scheduled coaching sessions with the management team and the financial team. Results from a recent coaching were:
- They had a sense of the whole picture of their manual content and gaps for improvements
- They better understood the policies and procedures and the current best practices in the financial management of BCV.
- They could reflect between current practices and policy compliances.
- They also learned the process of reviewing financial policies and procedures.