resource mobilization for government projects presented by: irene ng’ong’a icpak public finance...
TRANSCRIPT
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RESOURCE MOBILIZATION FOR GOVERNMENT
PROJECTS
Presented by:Irene Ng’ong’a
ICPAK PUBLIC FINANCE MANAGEMENT SEMINAR
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DEFINITIONResources are the inputs that are used in the activities of a program Mobilization is "the process of forming crowds, groups, associations, and organizations for the pursuit of collective goals.
Organizations do not "spontaneously emerge" but require the mobilization of resources.
RESOURCE MOBILISATION IS GREATER THAN FUNDRAISING
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Resource mobilization the process by which resources are solicited by the program & provided by donors & partners. It includes; natural, physical, human , social resources & most commonly financial resources.
In kind resources e.g. provision of office space, seconded staff, or partner participation at board meeting are second level of resources
Cont.
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Resource mobilization means expansion of relations with the resource providers, and the skills, knowledge and capacity for proper use of resources.
Also includes seeking new sources of resource
mobilization as well as correct and maximum use of the available resources
Definition cont……..
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Submitting proposals to a typical donor agency is the most conventional way of getting support
Organizing fundraising events where you invite guests and request donations for your organization
Donation boxes where you request small amounts of money from public
Collecting in-kind contribution such as used clothes, furniture, books, vehicles or even buildings
Different types of support for RM
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1. Assessment of the current situation 2. Identifying required resources for the project3. Comparing what is needed and what is available to determine the gaps4. Identifying potential sources of needed resources 5. Outlining best strategies for approaching
stakeholders (donors and partners)6. Outlining monitoring and review mechanisms. 7. Documentation of all activities FOLLOWING ALL STEPS ENSURES A SOUND RESOURCEMOBILISATION PLAN.
RM STRATEGIES
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Link with the organization's overall strategy Projects to push the vision; Reviewing existing resource mobilization
efforts; Defining what activities to be carried out; Determining what it should take to carry
out the activities; Clarifying expected deliverables. AN ASSESSMENT OF THE CURRENT
SITUATION PLACES THE PROJECT WITHIN THE BROADER CONTEXT
1. Assessing current situation
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List all resources needed for the project Review and list all resources available to
ensure that all resources are considered Human – skills, capacities, equipment Compare needs with existing resources and
note gaps
2.Identifying Required Resources
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Identifying donors and partners Matching their scope and interest with the
requirements of the project (resource mobilization environment search and donor mapping).
Considering ethical issues – seeking to understand the underlying principles of the donor versus values of the organisation.
3. Identifying potential sources of needed resources
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Type of potential donors determines approach former donors:
We have worked with them before; We need to build on existing relationships. New donors: We need to sell our organization to them; We need to create new relationships.
4. Strategies for approaching stakeholders
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Assessment of interest Targeting associates (Informal) Telephone calls Electronic mails Meetings over tea or lunchCreate new relationships (Formal) Appointments to make introduction Introductory letters Proposal Sending a formal proposal to a donor with
interest ensures better chances of success.ALL EFFORTS MUST BE COORDINATED
5. Approaching Donors
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All stages and activities must be documented
It is crucial to include metrics at each stage Expected deliverables should be indicated
for each activity; Lack of monitoring can be costly. OAU Story OAU WAS AN EARLY STARTER BUT MAINLY
DUE TO LACK OF A COMPREHENSIVE PICTURE, THE PROJECT FAILED
6. Monitoring and Evaluation
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The global economy is facing a crises Aid will not flow freely Resource mobilization becomes a harder task Internal budgets shrink Opportunistic grants become scarce. Donors are more frugal Competition becomes fierce Recession ≠ No funding but it means that: Projects need to be well thought out, attractive and strategically relevantNEW STRATEGIES NEED TO BE SOUGHT AND
IMPLEMENTED
Resource Mobilization in the current economic tide
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The desired outcome - digitized knowledge for development in Africa - is noble
The African Union is working towards integrating Africa
Regional Economic Communities (RECs) want to achieve regional integration.
Knowledge and information are strategic assets for integration
THE STAGE IS SET FOR ACTION
Observations
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RM process is generally governed by legal agreements at various stages
Parameters or rules established by the partners at the inception of the program and recorded in the charter or initiating legal documents e.g. requiring a donor to contribute a minimum amount per year in order to have a seat in the governing body.
RM Constraints
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Specification that funds cannot be accepted from private sector sources, or only under certain conditions
Requirement that’s separate accounts for different expected uses of funds which would affect recording of deposits.
RM COSTRAINTS Cont….
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Refers to all processes that govern the recording and use of funds, including allocation process, crediting and debiting of accounts, controls that restrict use and accounting and periodic financial reporting systems.
FM also includes the processes which ensure that funds are used for the intended purposes.
Financial management in the context of RM
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Review should be done both form static & dynamic perspective.
Static perspective The financial resources at any point in time
are the major input that determines results and analyzing their sources and uses is an essential part of tracking progress and attributing results to the program.
Evaluation to cover RM
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The processes of formulating the resource mobilization strategy, managing the peculiarities of responding to diverse donor cycles and committing and allocating funds need to be examined in their own right because they affect the ability of the program to achieve its objectives on a larger scale or new ways.
Dynamic perspective
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Descriptions of the sources and uses of public and private funds
Assessment on how the patterns of financing have affected the scope, reach and results of the programs achieved.
Analysis of the allocation processes and any effects that donor restrictions have had on achievement of the program’s objectives
RM Evaluations components
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Assessment of the strategy of the program-the degree to which the programs RM strategy & execution is adequate to meet the needs of the program to achieve the desired scale. E.g. assessment of governance.
Assessment of the degree to which the financial management system and financial reporting are meeting the expectation of donors as it can have a significant effect on mobilizing resources.
Cont.
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Link between governance and financing Are there financial requirements like
minimum contributions that condition membership in the governing body? Does participation of some donors on the governing bodies discourage other donors form contributing?
Should different roles for different types of donors (e.g. private sector & individuals) be considered?
RM EFFECTIVENESSWhat to consider
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Role of the governing body in mobilizing resources: Is the governing body appropriately exercising its role in
a) Guiding the formulation of the RM strategy responsive to strategic direction
b) Setting policy rules regarding acceptance of tied funds, private sector funds.
c) Staying open to possibility of new donors.
Cont…
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The prospects for beneficiary country or local partners to make financial contributions to the program now or in the future
Does RM strategy address this issue? Has a timeline been established for the country partners to take over more responsibility for financing and implementation of program activities at both national and regional levels.
Cont…..
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The quality of financial management and accounting
Have financial management systems met all standards of trustees and contributing donors?
Are financial reporting and auditing arrangements satisfactory?
Do the recorded categories of expenditures facilitate adequate monitoring and attribution of costs to activities and results?
Cont…….
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The methods ,criteria and processes for allocating funds
Are the processes and criteria being applied?
To what extent have these evolved over time in response to new priorities or objectives.
How effective and efficient are these processes?
Cont…….
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Africa depends on external resources because domestic savings fall short of current investment needs. Given that this gap will not be closed quickly, most African countries will continue to rely on external resources in the near future. Better public resource mobilisation is thus not an alternative to aid; they must go together.
AFFRICAN CONTEXT
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The challenge is for African countries and their partners to end the vicious circle of aid dependence that shifts government accountability away from citizens towards donors. Instead, they need to start a virtuous circle of aid working to make itself redundant, by supporting public resource mobilisation.
Video link: https://www.youtube.com/watch?v=RWyXecXr9bc
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A good RM strategy and evaluation should compare the costs and benefits of constraints imposed by donors. On the other hand, the need to accommodate donors preferences, expressed through tied funding arrangement or earmarking, can constrain program wide priotization process and result inefficient allocation of resources.
Conclusion
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Channeling the additional funds through the
program rather than to uncoordinated parallel activities may have important benefits, such as expanding the scale or scope of the program, adopting a new, special focus for the program, or better aid coordination.
Conclusion…
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THANK YOU