Disbursement Issues and Challenges Practical Perspective from Kosovo Burbuqe Zatriqi, Finance Office - PowerPoint PPT Presentation

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Disbursement Issues and Challenges Practical Perspective from Kosovo Burbuqe Zatriqi, Finance Office

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DRs = product of the team work of the program and operations staff in the PR's office ... Monitor achieving the key indicators with periodic targets ... – PowerPoint PPT presentation

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Title: Disbursement Issues and Challenges Practical Perspective from Kosovo Burbuqe Zatriqi, Finance Office


1
Disbursement Issues and Challenges Practical
Perspective from Kosovo Burbuqe Zatriqi,
Finance Officer, PIU, Ministry of Health
Third Regional Meeting of the Global Fund to
Fight AIDS, Tuberculosis and Malaria for the
Grant Recipient Countries of Eastern Europe and
Central Asia, Tbilisi, Georgia, Sheraton
Metechi Palace Hotel, 17-19 September 2007
2
Kosovo TB grant Snapshot
  • TB grant Expanding Tuberculosis Prevention and
    Treatment Activities in Kosovo
  • Grant Term 5 years grant USD 3,903,063
  • Phase 1 approved April 2006 March 2008
  • USD 2,122,401.00
  • GF Disbursement Amount to Date1,958.703.53
  • Program Expenditures to Date1,066,997.88
  • Number of SRs 4
  • SR budget 252,055.67

3
Key Topics
  • Disbursement Requests The process the PR
    follows to request disbursements from the GF
  • Budget management process and its link to
    Disbursement request procedure
  • Challenges with relation to the disbursement
    process and how we addressed them

4
Requesting a GF disbursement Practical Steps
  • Disbursement requests (DRs) are submitted based
    on consideration of the following
  • Annex A (Standard Progress Update/Disbursement
    Request form and compliance with applicable CPs
    and Special Conditions)
  • Standard Terms and Conditions of the Grant
    Agreement (due 45 days following the end of the
    reporting period) v
  • PR Guidelines for completing the disbursement
    requests
  • DRs are based on the PR-projected program cash
    requirements for the next reporting period plus a
    buffer quarter
  • DRs product of the team work of the program and
    operations staff in the PRs office
  • DRs are linked to periodic programmatic progress
    and financial accountability
  • v Program and Finance staff staff
    hold regular meetings and jointly validate the
    programmatic progress and financial reports
  • Check if grant funds are prudently managed and
    used solely for program purposes.
  • Monitor achieving the key indicators with
    periodic targets
  • Verifies if expenditures are done against the
    correct budget line
  • Review of the PR and SR program implementation
    with emphasis's to need for changes in
    implementation

5
Important Things to Remember for a Smooth
Disbursement Process
  • Software for budget and financial management is
    accessible to all relevant staff in project
    implementation as a precondition for issuing
    accurate financial reports on incurred
    expenditures, cash flow, budget variances and
    preparing a reasonable forecast.
  • Good and comprehensive explanation of the
    variances for PIU and LFA by providing
    additional information through tables helps to
    do a reasonable and accurate forecast on
    expenditures for the next disbursement E.g.
    Table showing in details the forecasted
    expenditures and the reasons for the budget
    variances commitments, delays in implementation
    , outstanding payments , status of on-going
    activities

6
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7
Getting disbursements on time
  • Goal DRs due to the LFA/GF within 45 days from
    the end of the reporting period
  • Practical consideration - Next disbursement must
    be received before the end of the buffer period
  • Practical steps taken by the PR to ensure timely
    reporting and disbursements
  • SR reports due to the PR
  • Monthly reports - 5 working day after the
    end of the quarter
  • Quarterly report 15 days after the end
    of the quarter
  • Days planned for internal PR review of quarterly
    report
  • 15 days after assembling of all reports
    from SRs
  • Final Consolidation and accounting at PR level
  • 30 days after end of the quarter
  • Final submission to the LFA
  • 35- 45 days after end of the quarter

8
Getting disbursements on time (cont.)
  • Approach to the LFA review
  • - Providing the preliminary report for
    checking prior to sending the official in order
    to avoid delays and incorrectness
  • Other steps
  • Trainings/workshops/regular exchanges with SRs
  • - PR Organized orientation / introduction
    session to SR staff to present the Grant
  • - Separate trainings organized for SR
    Finance staff on finance procedures. All
    relevant forms provided to SR
  • - PR holds regular meetings with SR as well as on
    SR request.
  • - PR provides on job trainings to SR finance
    staff
  • - PR Plans joint Retreat with SR staff

9
Budget Management Process Practical Perspective
  • Program coordinators takes lead in forecasting
    program activities
  • Regular monthly update on budget utilization is
    shared by finance with program staff .When
    required more frequently.
  • Budget adjustments and reprogramming done based
    on the progress
  • and actual expenditure reports
  • - Program staff submits the request for
    adjustment /reprogramming on the template form
    indicating the changes and seeking the approval.
    Once it is approved the change is recorded into
    the budget.
  • - Approvals are provided by PIU Manager,
    CCM , GF, depending on the level of the change
  • - Changes are requested in line with GF
    guideline Comprehensive information on program
    spending and budget variances determinates and
    justifies the disbursement request

10
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11
Challenges and how we addressed them ..
  • Grant funds in custody of the Ministry of Economy
    and Finance as a
  • public money to be budgeted within Kosovo
    Consolidated Budget ( KCB )
  • - KCB operates on the basis of the
    cash based budget. No activity can be initiated
  • if cash is not available.
  • - The precondition for initiating the
    activity is raising the commitments ( reserving
    ) the funds.
  • Commitment document is a proof that
    the funds are available to start the activity.
  • The delays in implementing the such
    activities with additional new commitments raised
    leads to the decrease of the cash available
    for - initiating the forthcoming implementation.
  • - Budget categories in KCB differ with
    budget categories approved by GF.
  • Therefore there is a need to convert
    the budged approved by GF to KCB budget
    categories ( the chart of accounts differ )The
    regular monthly reconciliation is required.
  • Two currencies involved , USD and EUR as a local
    currency
  • - Considerable fluctuation due to 2
    currencies leads to gains and losses
  • - From committing the funds to expenditure
    the exchange rate changes
  • PR need to keep double booking
  • All financial data for this grant are
    maintained-registered in two data sources
  • - Ministry of Economy and Finance and
    Ministry of Health- PIU
  • MFE has the software for budget and
    finance managing which does not provide reports
    as required by GF.

12
Challenges and how we addressed them (cont.)..
  • Lack of staff capacity and competence, inadequate
    financial procedures and inaccurate SR reports
  • Solutions
  • - Development of harmonized and
    coordinated reports by using the unified
  • unified sound accounting systems for
    the grant managing
  • - Regular meetings and field support
    visits to SRs in report writing and collection
    reports
  • - Organizing training , workshops and
    joint retreat with SR

13
  • Dedicated program and operation staff to the
    project ensures the successful
  • implementation!!!
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