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Financial Management for NGOs (Three Days)

 

Many organizations face serious problems that block their development process due to ineffective financial management at organizational and project levels. It has often been reported that organizations fail to continue in harmony with their stakeholders due to lack of transparency in financial operations, ineffective operational planning and an ineffective interface between the operations and finance of the projects / organizations.

This workshop has been specially designed to help such organizations and development sector professionals in overcoming their operational, planning and financial accounting needs. Although the first step towards growth is the willingness and commitment of the participants to bring change in their practice towards more professional planning, it is necessary to have some tools for facilitating this process. This workshop will provide participants with a framework for making these changes possible.

Objective
The objective of the course is to take you through the basic principles and techniques of organizational finance. Financial management is a vital part of managing operations; but we do not have to be financial experts or qualified accountants to understand and use financial management tools. Financial management is based on common sense ideas; indeed, it can even be enjoyable and rewarding.

Content

  • What is financial management and why is it important for NGOs?

  • Roles and responsibilities - financial management as a team effort

  • Which accounting records you should keep in your NGO - and why

  • Structuring the accounts - understanding the power of the chart of accounts and project cost centres

  • Managing and accounting for core costs (overheads) - identifying direct and indirect costs, apportioning costs between projects

  • Building and using effective budgets - including project and organizational budgets; cash flow forecasts and funding grids; foreign currency and multi-year budgeting

  • Monitoring and controlling budgets - preparing and using budget comparison reports

  • Reporting to donors - how to access the information that donors require to meet obligations

  • An overview of internal control - using common sense precautions to safeguard the organization’s assets and protect staff.

Learning activity

These are quick activities, usually when a subject is first introduced, which ask you to draw on your own experience to provide some instant ideas on an issue. Alternatively, learning activities may help you learn a particular skill. Learning activities will vary in length but usually last no more than 15 minutes.

Exercises

Unlike learning activities, exercises are usually evaluated to see whether you have reached an adequate level of skill. There are no tricks in the exercises; they are simply aimed at seeing if you have acquired the skills in the previous sections.

Case studies

Case studies are important, as they will reinforce your learning by looking at real-life problems and solutions.

 

Learning Outcome
When you have completed this course you will be able to

  • Keep accounts

  • Design budgets

  • Monitor budgets

  • Put in place internal control mechanisms

  • Manage cash flow

  • Work more effectively and efficiently with donors and finance staff

  • Use financial management to create strategies

Who should attend

  • Accountant assistants

  • Accountants

  • Finance managers

  • Those who involved in budgeting
     

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