Effective planning is key to ensuring clear, relevant organizational goals are established and achieved in the process of building resilient financial management systems.
Planning involves understanding and documenting the expected role of the finance function in contributing to the achievement of a government’s or organization’s goals. This includes appreciating the strategic role that the finance function can play in achieving broader health and development goals, as well as ensuring the recording and reporting of day-to-day transactions.
Having recognized the role of the finance function, planning involves ensuring that the expected outputs are reflected in the structure of the finance department and identifying the number of people and the skills needed to perform this function.
Through a good understanding of countries’ national priorities, UNDP is able to work closely with governments and stakeholders to document clear goals that contribute to implementing and monitoring improvements in financial systems for health.
To facilitate the planning process, UNDP assists stakeholders of health programmes to conduct financial analyses. This process has helped to identify the optimal financial management structure for health programmes in Africa, Asia and the Caribbean.
Within this approach, UNDP:
United Nations agencies have developed the risk-based, harmonized approach to cash transfers (HACT). This framework identifies implementing partner capacity needs and develops capacity with assistance from UNDP and other development partners, as core to managing risk.
Identification of and planning to address implementing partner capacity gaps is an important element of the HACT. The results of a HACT assessment help focus future capacity development activities on key thematic and mandated areas of development, and on developing the financial management capacity necessary for any implementing partner. The capacity development initiatives identified during the implementing partners microassessment process can be incorporated into the existing standard UNDP capacity development framework.
Suggested indicators to monitor improvements in financial planning include:
The Finance Role in Sustainability and Transformation Plans
Certified Institute of Public Finance and Accountancy