Reliable financial management determines the level of success and achievement of program goals of a network, coalition or consortium. Grant administration is one comprehensive solution taking into account the density and the tightly of activities and reporting schedules, temporary periods of program, relatively large fund to be managed, and reporting obligations to the members of the organization as well as the demands of the various report for donor agencies.
Non-profit organization in carrying out its activities often work in networks, coalitions or consortia, which are usually, obtained funding from several donor agencies. Network, a coalition or consortium is usually established for a limited period (temporary), which is sometimes difficult for the organization to recruit the financial management unit for temporary basis.
Network, coalition or consortium, usually does not have a particular legal entity, so they will require the commitment and agreement of members of the network on a joint financial management unit. On the other hand, donors need reasonable assurance regarding the financial management capacity of the network-based program, while also requiring certainty and clarity in charge of the funds distributed. Herein lies the need for financial management unit which can be neutral, independent, able to maintain the overall interests of each member, able to oversee the implementation of the program according to plan and budget, and at the same time is able to meet the financial standard requirements set by donors.
Financial management services as an administrator/intermediary will be based on the development of appropriate financial management systems, the placement of qualified human resources and the use of appropriate management tools; besides the expertise in facilitating the interests of each party involved and persistence in assisting network-based program.
Facilitation Network and Grant Administration will include:
1. Planning and Budgeting
2. Development of Financial System
3. Finance Management, Bookkeeping and Financial Statement Preparation
4. Financial Capacity Building (at the level networks and partners)
5. Grant Administration
6. Audit Assistance
Specific financial management system, which will consist of a series of policies and procedures need to be built with an emphasis on the distribution of grant funds (channeling, grant-making or sub-granting) to each member of the network or partner support program.
