Uploaded byTerry Lewis
introduction to financial monitoring
This document discusses the importance of financial monitoring for NGOs. It explains that there are four essential building blocks to a strong financial management system: accounting, financial planning, financial monitoring, and risk management. Financial monitoring involves producing regular financial reports to track progress against budgets and plans. These reports are important for both internal stakeholders like managers and trustees as well as external stakeholders like donors and communities to ensure accountability. The document outlines the financial monitoring process and different types of reports used, including budget monitoring reports and annual financial statements.
In this document
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Introduction to financial management systems, emphasizing financial monitoring essentials for NGOs.
Understanding the accuracy of records, financial planning, tracking progress, and protecting resources.
Introduction to financial monitoring with interlinked building blocks, using data from accounting records.
Financial monitoring systems provide reports to stakeholders; reports must be timely, accurate, and relevant.
Identifies internal and external stakeholders and their needs for financial information.
Internal stakeholders use budget monitoring to compare budget with actual expenses, including action plans.
Annual financial statements summary including income/expenditure statements and balance sheets.
Essentials of financial reporting for successful project management and building credibility.
Invitation to join training courses on budget monitoring and resources available for NGOs.
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introduction to financial monitoring
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- 2. www.mango.org.uk Did you knowthat there are 4 essential building blocks in a strong financial management system?
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- 4. www.mango.org.uk This is aboutkeeping an accurate and complete record of all financial transactions – for accountability and transparency.
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- 6. www.mango.org.uk We have toplan ahead to make sure we have the money we need to achieve our objectives, now and in the future.
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- 8. www.mango.org.uk This is aboutkeeping track of progress against our plans and sharing how we are doing with key stakeholders.
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- 10. www.mango.org.uk We have aduty to protect our financial resources and staff from internal risks such as accidents, theft and fraud. We do this by implementing a series of commonsense controls and checks.
- 11. www.mango.org.uk This slideshow introduces the financialmonitoring process
- 12. www.mango.org.uk The building blocksare closely interlinked. Their systems and procedures overlap and complement each other.
- 13. www.mango.org.uk The building blocksare closely interlinked. Their systems and procedures overlap and complement each other. To do financial monitoring, you need data from the accounting records and budgets produced during the financial planning process.
- 14. www.mango.org.uk Financial monitoringsystems produce a range of financial reports to enable key stakeholders to scrutinisethe figures, review progress in programmes, and decide on follow-up actions as needed.
- 15. www.mango.org.uk Financial reports must betimely, accurate and relevant
- 16. www.mango.org.uk There are twomain audiences for financial reports…
- 17. www.mango.org.uk Managers and trustees needfinancial information to track progress in programmes 1. Internal stakeholders
- 18. www.mango.org.uk Donors, government agencies andlocal communities need financial reports for accountability. 2. External stakeholders
- 19. www.mango.org.uk Budget monitoring reports tocompare the budget with actual spending and income, to assess progress and decide what action is needed Internal stakeholders use…
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- 22. www.mango.org.uk Review Receive & spend project funds Prepare budgets Comparethe budget with actual activity
- 23. www.mango.org.uk Review Receive & spend project funds Prepare budgets Comparethe budget with actual activity Take action as needed to get back on track
- 24. www.mango.org.uk The annual financial statementswhich provide a summary of the financial results External stakeholders use…
- 25. www.mango.org.uk The annual financial statementswhich provide a summary of the financial results Donor reports which give an update on the use of project funds External stakeholders use…
- 26. www.mango.org.uk Annual financial statements Income& Expenditure statement
- 27. www.mango.org.uk Annual financial statements Income& Expenditure statement Balance sheet
- 28. www.mango.org.uk Annual financial statements Income& Expenditure statement Balance sheet INCOME – EXPENDITURE = OUTCOME Surplus or deficit?
- 29. www.mango.org.uk Annual financial statements Income& Expenditure statement Balance sheet LIABILITIES Things we OWEASSETS Things we OWN INCOME – EXPENDITURE = OUTCOME Surplus or deficit?
- 30. www.mango.org.uk Annual financial statements Income& Expenditure statement Balance sheet ASSETS – LIABILITIES = EQUITY What are we WORTH? LIABILITIES Things we OWEASSETS Things we OWN INCOME – EXPENDITURE = OUTCOME Surplus or deficit?
- 31. www.mango.org.uk Financial reporting is essentialfor… Successful project management
- 32. www.mango.org.uk Financial reporting is essentialfor… Successful project management Building credibility and trust
- 33. www.mango.org.uk Want to leanmore about budget monitoring? Then join us on one of our practical and fun courses soon. Budget monitoring essentials eWorkshop now available! http://www.mango.org.uk/training [email protected]
- 34. www.mango.org.uk Find out moreabout Mango and free resources for NGOs http://www.mango.org.uk/guide
Editor's Notes
- #18 We cannot have timely and reliable project financial reports without robust accounting records; and we must have good financial planning systems to enable the budget monitoring process.
- #19 We cannot have timely and reliable project financial reports without robust accounting records; and we must have good financial planning systems to enable the budget monitoring process.