Management of Network Budget Allocations TAJ & IRF Power Group Training July 21 st – 25 th, 2014 Golden Sands, BG

Table of Contents 1. Management of Network Budget Allocations: a) Targeted objectives b) Challenges & issues 2. Bud Mods as a case study a) Introduction of process b) Different approaches 3. Discussion panel & feedback 4. Recommendations 5. Next steps – short- & long-term Interactive - discussion, Q&A

Objectives Timely, standard & consolidated reporting Consistent & transparent BA management across the OSF network Maximize the potential of budget as a management tool Provide consolidated Variance report: At individual Budget Allocations Aggregated expenses in more details Develop common uniform set of guidelines

Challenges Challenges with new coding structure Lack of transparency & standards Shadow databases at Network Programs Tracking, monitoring & analysis of BAs Administrative burden for BAs: CO: Issuing separate BAs for each Catg of Work FND: processing this large number of BAs

Reporting Challenges No timely reporting to Central Offices Spendings by allocation & remaining budgets at year end Lack of transaction details in consolidated Variance reports Budget allocations - Awarded vs. Received Integration of GMS.NET Central Offices Donor-Foundations relationships (MoU) References: BA NotesBA Notes

Discussion Topics Overview of BA management Current Foundation practices Discuss challenges and issues  Agree on standard solution & consolidated reporting across the board

Introduction Budget Allocation – mini donor contracts Type of relationships: Network Programs cooperate with Foundations to implement their strategy and Work plans on the field (AfRO, OSJI) – hosting co- located staff Foundations partner with Network Programs on joint projects (Public Health Program) One standard format: AfRO {PDF}; PHP {link}PDFlink HESP 2014 HESP 2014 ; Strategy Unit 2014Strategy Unit 2014

BUDGET MANAGEMENT PROGRAM Catg of Works PROJECT Workplan GOAL ACTIVITIES Grants, Consultancy Operational

In-built Budget Workflow Fund Class (Donor) Division (Program cluster) Category of Work Work Plan Projects Programmatic Project Administrative Project Operational Activity Consultancy Grant Workshop Monitoring & Evaluation Grant 1 Travel Procurement Salaries Grant 3 Grant 2 BUDGET IMPLEMENTATION via ACTIVITIES SOW3 9

BAs Management in GMS 1. Management of Budget Analytics (centrally by Finance) – Central Office budget dimensions MAPPED to Foundation-specific counterparts: FUND CLASS  FUNDINGS DIVISIONS  PROGRAMS CATEGORIES OF WORK  FUNCTIONS GEOGRAPHY  COUNTRIES 2. Increase organizational Program budget (Program/co-located staff) through GMS Program Additions 3. Allocate budget to Projects via GMS Project Addition 4. Plan respective Activities & commit budget to Grants, Consultancy and Operational. 5. Make disbursements & incur expenses 6. Reporting on each & every level

Case Studies

DONORS (T4) PROGRAMS (T1) PROJECTS (T0) ACTIVITIES (T6) FINANCIALS (PRs & ERs) FOSI CORE FPOS Network FOSI Network ROMA HEALTH HIGHER EDUC: HESP FRHP FPOS CORE EARLY CHILDHO OD G06444_Slob odan + jednak = zdrav Procena stanja inkluzivnog obrazovanj a u Srbiji Grantee Vendor Grantee Consultant AFP -Office expenses Consultant AFP SEE Belgrade Office F3_O3 Inclusive Education Employee Reference: {hyperlink}; HESP 2014 ; Strategy Unit 2014hyperlinkHESP 2014 Strategy Unit 2014 AFP Benefits & compens. Programme Expenses - AFP 2014

Pros & Cons Strong points: Identifiable Program cluster Register Categories of Work: Co-funded: joint projects as per FND Work Plan Funding Central Offices’ Work Plan on the field (hosting co- located staff) Consistent approach for tracking Batch IDs in GMS For consideration: Track BA Batch ID by separate GMS Projects Utilize GMS better – Projects as cost centers to group related Activities: Grants Consultancy Operational Challenge: transitional 2014

Summary BAs – tracking by Divisions & CoWs Various tracking of BAs on different levels: Fundings Projects Issues with reporting budget & spendings:  Timely reporting  Level of details  Monitoring, analysis & reconciliations No consolidated variance report of all BAs

PANEL DISCUSSION Based on the presented case study, agree on a common set of guidelines & recommendations

Moving Forward Towards consolidation Standard reporting

Next Steps Recommend a uniform approach: 2014 as a transitional year Draft guidelines for best practices Management decision on level of reporting Enhancement of corporate Budget Allocation systems ( AfRO {PDF}; PHP {link})PDFlink Reference: Management of Network Budget AllocationsManagement of Network Budget Allocations

Recommended Solution Set up each Network Budget Allocation as a separate Project in GMS – use Project code last 11 digits to track by BA Batch ID Analysis by Projects (Batch ID) – within GMS only The project duration can be extended to be in sync with any future budget amendments Supplementary GMS reports to be submitted Challenges: Currently no HO Mapping of this analytical code GMS Projects HO Event codes? Reference: Management of Network Budget Allocations; HO Event Codes in GMSManagement of Network Budget AllocationsHO Event Codes in GMS

Network Consolidation CONSOLIDATED THEMATIC PROGRAM DATABASE FND 1FND 2FND 3FND 4 Reference: AFRO_Corporate_Analytics ; Hyperlinked Pivot Table reportAFRO_Corporate_AnalyticsHyperlinked Pivot Table report

GMS Strategy for GMS integration with Central Office systems Phase I: data exchange with export/import files Phase II: full-blown systems integration  Consolidated management reports for: Budgets (including budget modifications) Spendings (operational & admin expenses) Detailed Grant List

Consolidated Reporting Reference: AFRO_Corporate_Analytics ; Hyperlinked Pivot Table reportAFRO_Corporate_AnalyticsHyperlinked Pivot Table report

QUESTIONS & ANSWERS Additional Materials: