Date: 24th – 30th November, 2024
Time: 9:00 AM – 5:00 PM, daily
Venue: Chesney Hotel, Victoria Island, Lagos
Participating OPDs: NNAD, NAB, IFA, Project Enable Africa, Kanawa, JONAPWD, TAF, PEA and Other OPDs,
Facilitators: Dr. ThankGod, Mrs. Domini Madugu, Fabian Tukmen, Mrs. Victoria
DAY 1:
Introduction
The first session of the training began with introductions. Participants were paired with individuals from other organizations to learn each other’s names, designations, nicknames, and hobbies. This interactive activity set a friendly and collaborative tone for the training.
The objectives of the training were outlined as follows:
1. Capacity Building: Strengthen the capacity of local CSOs.
2. Practical Application: Equip participants with the skills to implement the knowledge gained at their organizational level.
Participants completed a pre-test questionnaire to assess their knowledge of foundational accounting and procurement practices.
Session Highlights
1. Common Gaps in Finance and Procurement for NGOs
Facilitator: Dr. ThankGod
Dr. ThankGod identified several common challenges faced by NGOs in finance and procurement, including:
- Regulatory Compliance: Many NGOs fail to comply with PAYE, Pension, FIRS, CAC, NSITF, NHF, FRC, or SCUML regulations, risking their credibility.
- Finance Expertise: Lack of qualified accountants and reliance on inexperienced external auditors.
- Employee Benefits: Absence of structured employee emoluments.
- Internal Controls: Poorly implemented internal control functions.
- Procurement Problems: Undefined procurement policies, absence of vendor prequalification, lack of market research, and failure to mitigate conflicts of interest.
The organogram structure of an NGO was also discussed, emphasizing the pivotal role of the Accounts Department, which reports directly to the Director and advises on financial strategies.
Key Reasons for Effective Financial Management:
- Ensuring regulatory compliance to build donor credibility.
- Establishing written policies and procedures.
- Accurate documentation of expenses and cash management.
- Developing effective accounting systems and budget controls.
- Preparing and submitting timely management reports.
2. In-Kind Contributions and Matching Requirements
Facilitators: Fabian Turkmen and Domini Madugu
Key concepts discussed:
Matching Contributions: Contributions from different parties to fund a specific project. Example: Donor A contributes $50M, and Donor B contributes $20M to Project X.
In-Kind Contributions: Non-monetary items, products, or services provided by donors to a project. Example: Unilever supplies products for female entrepreneurs under the GESP project.
3. NGO and Regulatory Compliance
Facilitator: Dr. ThankGod
Participants discussed why regulatory compliance is crucial for NGOs. Reasons included:
- Avoidance of penalties.
- Preservation of organizational integrity.
- Facilitating resource mobilization, as funders require compliance information.
- Enhancing transparency and competitiveness.
Dr. ThankGod highlighted that regulatory compliance, though seemingly costly, can be integrated into budgets during the project concept stage.
Challenges of Non-Compliance:
Delisting from the CAC server.
- Erosion of public trust.
- Financial losses and donor disengagement.
- Implications of Non-Compliance:
- Damage to organizational brand and credibility.
- Reduced chances of donor funding.
Wrap-Up
The day concluded with feedback, a Q&A session, and assignments for participants:
1. Obtain regulatory documents from their Executive Directors.
2. Verify the status of their CSOs on the CAC platform.
The first day’s training provided valuable insights into improving financial management and compliance practices for NGOs.
REPORT: DAY 2 OF SIGHTSAVER TRAINING
Date:26th November,2024
The program started around 9 am yesterday with a recap of the previous day by PEA and JONAPWD organization.
After that, Dr. ThankGod talked briefly about financial policy as a major part of the financial role. He said a finance officer must always be involved in reviewing the finance role, that a finance officer plays an advisory role to management,t and that we should take ownership and make ourselves relevant to the organization. After that, an assignment was given to discuss the organization’s financial policy with our partners.
Mrs Domini took over from there and went on to talk about the agenda for the day.
Firstly, the Key elements of Financial Management are:
1. Financial planning
2. Financial Control
3. Financial Decision Making
Then, a quick group work activity was given on the key elements of financial Management, with two examples of each and how we use them in our various organizations.
There was a discussion on financial tools, which are :
1. Budgets Planning, implementation & Controls
2. Unit Organization Chart
3. Tracking of Expenses
4. Asset Management & Control
5. Bank & cash management
6. Staffing
7. Documentation and Filling
Secondly, budgeting for non-profit organizations is about planning a budget. Every figure in a budget must have justification, I.e., a basis for why it is in the budget.
There was a table showing the 4 justifications, which are:
1.policy manuals
2. market survey
3. Historical cost
4. instruction from donors
Followed by Budget best practices, which are ;
1. we have to be conservative
2. Teamwork should be done in collaboration with the program officer
3. No miscellaneous or contingency
4. It should be in line with the cost principle
5. Excellence in documentation
6. Get a Sign off.
Then, a quick group exercise was given on budget to allocate a #150M Grant
After this, a brief talk on fridge benefits as a different part from gross salary and that a finance manual should be a budget allocation method, and she wrapped it up with budget monitoring and Control
At around 2 pm, we took a break shortly, and we then proceeded to the 3rd agenda, which was;
Cash flow Management: As planning the inflow and outflow of cash to ensure you have the right amount of cash when it is needed, the tools for cash flow management are projection and forecasting.
Furthermore, she gave some differences between budgeting and cash flow management for a short period and for implementation. Cash flow looks at the future, while budgeting is historical and for long periods and for planning. Then, there was a list.
Cash flow Management for NGO
1. Diversity funding Activities
2. Build operating reserves
3. Manage accounts receivable and payable
4. Improve grant management and reporting
5. Developed a cash flow forecast and budget
6. Monitor
Financial Risk Management
The risk was defined as the potential for harm and loss.
There are 3 types of risk which are ;
– Operational Risk
– Liquidity Risk
– Reputational Risk
Managing Operational Risk: is to ensure smooth efficiency functions of internal processes, reduce the risk of losses, and maintain the reputation and stability of the company
Managing liquidity Risk- to ensure an organization can meet its financial obligations
Managing reputation risk helps protect the organization’s reputation and brand, maintain trust with stakeholders, and ensure its long-term success.
Mrs. Dominic wrapped up financial risk management with a diagram of how to mitigate risk are :
1. Accept risk
2. Avoid Risk
3. Reduce Risk
4. Transfer Risk
Dr. Thank God ended the program by assigning the participants to identify each risk, giving examples from our workplace and explaining how each risk can be mitigated.
DAY 3:
Opening Session
The day began with participants sharing feedback about their accommodation and reflecting on their takeaways from the previous day’s session (Tuesday). The facilitators expressed their satisfaction with the feedback, which they found encouraging.
Major Highlights of the Day
1. Financial Reporting and Analysis
The facilitator emphasized the importance of financial reporting, its components, and key principles such as timeline, accuracy, and relevance.
Key Components of Financial Reporting:
- Bank/Cash Books
- Bank Reconciliation
- Petty Cash Book
Participants were then divided into four groups for a practical session on bank reconciliation. Each group presented their work, after which questions were asked, and valuable feedback was provided by the facilitators and participants.
Recommendation:
The use of uniform templates for bank reconciliation was advised to ensure consistency and simplify the reporting process.
Record Management and Document Control
The session highlighted the importance of proper record management and documentation.
Types of Filing and Documentation Systems:
1. Physical Files and Folders
2. Digital File Management
3. Cloud-Based Storage (e.g., Google Drive, OneDrive)
4. Hybrid Systems (combination of physical and digital storage)
Key Note:
The facilitator stressed that documents not on record are considered non-existent, making proper documentation and backups essential. It was also mentioned that receiving a query at work is not a “death warrant”; however, having good documentation and backups is crucial to defending one’s actions effectively.
- Benefits of a Good Filing System:
- Enhances efficiency and productivity.
- Promotes organization and clarity.
- Ensures security and compliance.
- Saves time and costs.
- Improves risk management and decision-making.
- Increases employee and customer satisfaction.
3. Timesheet Management
The importance of timesheets in organizational projects was discussed. Participants learned how timesheets ensure accountability, track work hours, and improve project reporting.
Group Assignment
At the end of the session, participants were given a group assignment on filing and documentation, which was to be presented on the morning of 28th November 2024.
DAY 4:
Day 3 Recap by Mark Okhakumhe (TAF Africa), on behalf of Group 4
Facilitators: Mrs. Victoria and Mrs. Domini Madugu
Session 1: General Overview of Sightsavers’ Procurement Policy
The session, led by Mrs. Victoria, focused on a comprehensive review of Sightsavers’ procurement policy. Key highlights included the principles and purposes of a robust procurement framework.
Key Principles of Procurement
1. Specific Need: Every procurement activity must address a clearly defined need.
2. Value for Money: Procurement must prioritize cost-effectiveness without compromising quality.
3. Fairness: All processes must be unbiased and equitable.
4. Category Management and Local Engagement: Goods and services should be categorized effectively, with a focus on contracting local suppliers.
Participants were encouraged to develop a Code of Conduct Manual to guide vendor engagement and ensure ethical practices.
Purpose of Procurement Policy
The objectives of a procurement policy were outlined as follows:
- Prioritizing the beneficiary’s needs for quality and safety.
- Promoting best practices to find effective procurement solutions.
- Encouraging sound financial management.
- Driving ethical business practices and ensuring compliance with legal standards.
The policy also emphasizes mandatory requirements such as anti-fraud and corruption measures and addressing conflicts of interest.
Conflict of Interest
The complexities of managing conflicts of interest were extensively discussed. Participants agreed that it is important to disclose any potential conflicts to funders, even if disclosure is not explicitly required.
Additionally, to promote transparency and accountability, it was recommended that all staff sign an anti-fraud and corruption policy at the start of each year.
Session 2: Analysis of Specific Sections of Sightsavers’ Procurement Policy
Mrs. Domini Madugu facilitated this session, focusing on the practical application of procurement principles.
Procurement Thresholds
Procurement processes are determined by thresholds based on the value of goods or services:
Single-sourcing for values up to N10,000.
Three quotations are required for values up to N1,000,000, obtained through open or restricted tendering. Procurement Process
The session provided insights into:
- Purchase Orders vs. Contracts: When to use each, with purchase orders often used for goods and smaller procurements, while contracts are preferred for services or high-value procurements.
- Conflict-of-Interest Forms: Members of the procurement committee must sign these forms before any major deliberation.
Procurement Ethics and Compliance
The importance of transparency, accountability, fairness, and compliance in all procurement activities was emphasized.
Procurement Methods
Various methods discussed included:
- Open Tendering
- Restricted Tendering
- Negotiated Procurement
- Single-Source Procurement
- E-Procurement
Contract Management
Effective contract management was identified as critical, from negotiation to maintaining strong supplier relationships.
Key Takeaways and Action Points:
1. All staff should sign a Conflict of Interest and Anti-Fraud Form annually.
2. Organizations must develop a Code of Conduct Document for vendors and educate them on its contents.
3. Donor requirements take precedence over organizational policies during projects.
4. Procurement policies should be separate from finance policies and regularly updated.
5. Whistleblowing Policy: This policy should be made public, with the chairman of the board of trustees as the primary contact for whistleblowers.
6. Principles of fairness, accountability, transparency, and compliance should guide all procurement activities.
Final Day (Dr. Domini Madugu)
– Recap of Day 4
Asset Register Management
– refers to the process of creating, maintaining, and updating a comprehensive record of an organization’s assets, including their quantity, condition, location, and value.
Why an effective asset register management is crucial for NGOs?
– Ensure Accountability: Accurate asset records enable NGOS to account for their assets and demonstrate transparency to donors and stakeholders.
– Optimize Resource Utilization: Asset registers help NGOs Identify underutilized assets, reduce waste, and allocate resources more efficiently.
– Improve Maintenance and Repair: Regular asset register updates enable NGOs to schedule maintenance and repairs, reducing downtime and extending asset lifespan.
– Enhance Security and Risk Management: Accurate asset records help NGOs identify potential security risks and take proactive measures to mitigate them.
COMPONENTS OF AN ASSET REGISTER
An Asset Register is made of the following components:
1. Asset Identification: here, we assign unique identifiers to each asset.
2. Asset Classification: here, we categorize assets by type, location, and condition.
3. Asset Valuation: here, we assign a monetary value to each asset.
4. Asset Tracking: here, we monitor and keep track of asset movement, location, and condition.
5. Asset Disposal: involves recording and managing asset disposal, including sale, donation, or destruction.
What are the Best Practices for Asset Register Management in NGOs?
They include:
1. Development of a Comprehensive Asset Register Policy.
2. Use a Standardized Asset Register Template.
3. Conduct Regular Asset Audits and Reconciliations.
4. Train Staff on Asset Register Management Procedures.
5. Use Technology, Such as Asset Management Software, to Streamline Asset Register Management.
Fraud:
– Fraud is an intentional deception made for personal gain.
– Fraud could involve collaboration
– Fraud involves concealment.
– Fraud goes against compliance with Ethics and Standards of Business Conduct.
THE FRAUD TRIANGLE (by Donald R. Cressev)
Workshop Gallery:
