Financial management plays a pivotal role in the success of donor-funded projects. The effective use and deployment of donor funds for various projects demands careful utilization and timely reporting mechanisms to the funders. It is only when funds are effectively managed in accordance with the donor’s requirements will there be the motivation for reimbursement of financial resources.

This course is designed to enable those involved with projects to become effective and efficient in the acquisition and utilization of funds for development purposes using appropriate techniques and application of accounting and finance principles. It is tailored to equip participants with the essential knowledge and skills required to effectively manage finances within the framework of donor-funded projects.

Target Participants

This course is ideal for Project Managers, Finance Managers, Program Officers, Grant Managers and NGO Staff involved in project implementation.

What You Will Learn

By the end of this course the participants will be able to:

• Understand of financial management principles and their application in donor-funded projects
• Develop and manage project budgets in accordance with donor guidelines and requirements
• Enhance skills in financial monitoring, reporting, and compliance to ensure transparency and accountability
• Understand the importance of financial risk management and learn strategies to mitigate risks effectively
• Explore approaches for ensuring financial sustainability and mobilizing resources beyond donor funding
• Outline and evaluate the effectiveness of the legal provisions governing the procurement and use of donor funds

Course Duration

Classroom Based – 5 Days

Online – 7 Days

Course Outline

Overview of Financial Management in Donor Funded Projects

• Financial management concepts and terminology
• Understanding donor-funded projects: objectives, stakeholders, and funding mechanisms
• Principles of financial accountability, transparency, and integrity
• Roles and responsibilities of key stakeholders in financial management

Financial Statements- (Understanding, Interpretation and Analysis)

• Understanding Financial Statements for donor funds projects
• Interpretation and Analysis of Financial Statements
• Income Statements
• Balance Sheet Statements
• Cash Flow Statements

Costing and Budgeting of Donor Funded Projects

• Costing in Donor Funded projects
• Marginal, Absorption and Activity Based Costing
• Management of Accounting & Decision making
• Types of budgets and work plan
• Investment appraisal and capital budgeting
• Key steps of Budget reporting and Internal Controls

Budgeting of Donor Funded Projects

• Basics of project budgeting: creating a budget framework
• Components of a project budget: direct costs, indirect costs, contingencies
• Aligning project budgets with donor requirements and guidelines
• Budget monitoring and control techniques

Disbursement of Donor Funded Projects

• Statement of Expenditure (SOES)
• Special Accounts (SAS)
• Disbursement Reports and loan repayment
• Procurement of Goods, Works and Services
• Accounts and Audit

Financial Reporting and Compliance

• Importance of financial reporting in donor-funded projects
• Types of financial reports: narrative reports, financial statements, donor reports
• Compliance with donor regulations, legal requirements, and accounting standards
• Practical exercises on financial reporting and compliance

Project Management

• Project cycle management
• Project planning & scheduling
• Critical path and network analysis
• Project Monitoring & Evaluation and Reporting
• Evaluation of international aid offers

Risk Management

• Risk monitoring and control and control frameworks
• Regular financial reporting and independent audits
• Internal control policies & procedures
• Fraud prevention and detection
• Best Practices in Project finance Management

Financial Sustainability and Resource Mobilization

• Strategies for achieving financial sustainability beyond donor funding
• Diversification of funding sources: grants, donations, partnerships
• Fundraising techniques and proposal writing for donor funding
• Building organizational capacity in financial management and resource mobilization

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group works and case studies.

Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.