ORGANIZATIONAL CAPACITY DEVELOPMENT PC3 Organizational and Technical Capacity Assessment Tool (POTCAT) Part 2: Organizational Capacity Assessment PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - PC3 CAPACITY BUILDING PC3 Capacity Building The PC3 program is designed in such a way that it will give greater opportunity for mentor organizations and the CBOs to implement and manage their own activities. The role of Tier Is will be providing technical and financial support to Tier II or mentor organizations and these organizations are also expected to provide the same assistance to the CBOs known as Tier III who are actually implementing and sustaining the program. The major activities under the capacity development will be assessing the capacity of the mentor organizations and designing subsequent capacity development plans for further action. The Operational Capacity assessment is divided into organizational and technical activities. This manual particularly deals with organizational aspect and looks into the decision making process, the human resource management and the financial aspect in detail. Before conducting the assessment, orientation workshop will be held with all tier IIs. During the workshop participants will be familiarized with the concept of capacity building, the objective of capacity building, the POTCAT tool as well as the process how to conduct the actual assessment. Finally individual organization will draft a plan or schedule how to introduce the tool and when to conduct, the participatory capacity assessment in their respective organization with their Tier I partners. After the actual assessment is conducted, the plan of action development will take place shortly that will address the capacity gap in the form of training, material support, coaching, experience sharing etc. Therefore this manual will be helpful in assessing the organizational need only but later when the actual implementation gains momentum the technical assessment will follow suit. This does not mean there will not be any kind of training or support before the assessment. Partners may implement capacity building activities based on field reports, partners request etc. I. POTCAT Assessment Process POTCAT includes an instrument that you can use to collect and summarize technical information and a guide for applying the instrument. The process is based on the assumption that the most effective way to initiate organizational change is to involve staff members and other key stakeholders in an open assessment and consensual planning. It involves preparing for the assessment, conducting the assessment, and integrating the results into organizational activities. There are 9 steps defined under the 3 phases. Phase Step Preparing for the Assessment Step 1: Plan the assessment Step 2: Hold on initial meeting and develop a schedule Step 3: Review the POTCAT instrument/tool Conduct the Assessment Step 4: Carry out the assessment and complete the assessment form Step 5: Prepare a summary for each component Step 6: Develop a unit level action plan Integrating Results into organizational Activities Step 7: Reach consensus on priority actions at a one-day workshop Step 8: Develop an integrated action plan for the whole organization Step 9: Link the action plan to annual operational planning, budgeting, and monitoring II. Two groups participate in the POTCAT process A. Core team. The core team plans and conducts the assessment, monitors its progress, leads the development of an organization with action plan to make improvements, and advocates for the institutionalization of the plan within the organization’s planning and monitoring systems. The team will also plan how to scale up the remarkable achievement of the organization so that 2 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) other would implement in more effective and efficient manner. The core team should contain a cross-section of program and financial staff. B. Assessing Team The assessment team would be the core team, the senior management and other staffs preferably form all levels. The different mix will have a greater contribution in providing balanced views and arrive at effective output also. The team comprise of not more that 15 staff, during discussion/assessment should base their comment on evidence available or experience shared in common. For easy reference list of reference document is attached to the manual. III. General Directions How to Complete the POTCAT Assessment Forms POTCAT is a participatory organizational and technical assessment whereby staffs are given the opportunity to self-reflect on the performance of their organization in general on 13 identified key issues. The assessing team should be composed of various staff across the organization and be given prior orientation by the core team before actual conduct the assessment. During the assessment participants will be provided with the tool and based on his/her understanding of the criteria will rate the organization. With the help of external facilitator (Tier I), the assessing team will be requested to reach a consensus on each criteria during group discussion. There will be also a recorder from the organization to record the consensus and some of the important issues which needs further consideration. IV. How POTCAT instrument is organized POTCAT provides users with a rapid assessment tool to identify characteristics and capacity of an organization’s management and financial systems. The instrument consists of two types of forms. 1) The POTCAT assessment form with a. The 13 organizational and financial components b. Assessment criteria divided into 4 levels of organizational capacity c. Blank space for users response to each criteria d. Summary of the assessment where the group will write summary of the findings and the priorities for the capacity building 2) The action plan form for use by each unit and for an organization wide plan. POTCAT provides a template for action plan, which can be used both at the end of each unit assessment and in a final workshop of stakeholders, to organize recommended activities across the whole organization. On the template, they can indicate a timeline, person(s) responsible, resources needed, and indicators of achievement for each activity they recommend undertaking. Area Variance report and analysis Proposed Activities Develop protocol for expenditure review Timeline 6 month Person(s) Responsible Resources Needed Internal Indicators of achievement External Component: 8. Financial Planning & Budgeting Accounting Staff time consultant time directory with Tier I technical asst. half day Human resources workshop/training director monthly expenditure report distributed training held protocol printed 3 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - Section B - The Checklists ______________________________________ POTCAT Organizational Management Components: 1 2 3 4 5 6 7 8 9 10 11 12 13 Governance & Leadership Strategic & Operational Planning Structure: Roles and Responsibilities Structure: Delegation of Authority and Decision making Staffing and Human Resource Management Partnering and Networking Adequacy of Physical Infrastructure Financial Planning and Budgeting Cash and Banking Accounting and Record Keeping Procurement Distribution, Stock and Inventory Management Management Information System 4 1 Governance & Leadership Point No. 1 2 3 4 5 6 Checklist The organization is registered up to date. The board and senior management have written roles and responsibilities. The organization operates according to the approved by-laws. The board and senior management meet regularly. The management communication structures are established and information sharing practices are in place. Problem solving and dispute management mechanisms are established. 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 2. Operational Planning Point No. Checklist 1 There are systematic procedures for involving stakeholders (including the community) in formulating organizational strategies. 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response 2 An annual work plan exists. 3 The work plan establishes goals, activities, budgets, timeline and includes who is responsible for their execution. 4 The management reviews the work plan bi-annually 5 The annual work plan reflects priorities in a long-term, strategic plan. . 3. Structure: Roles and Responsibilities Point No. 1 2 3 4 Checklist 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response Job descriptions exist for all positions and are updated as required. Staff has the required background, training and capabilities/expertise for the positions they hold. The organizational structure reflects job responsibility and level of authority. Delegation of staff respects the line of authority and follows the organizational structure. 6 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 4. Staffing and Human Resource Management Point No. 1 2 3 4 5 6 Checklist 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response All required staff positions in the organization are filled. There are procedures for new staff induction. Personnel policies include job classification, staff development, benefits, compensation, hiring/promotion, grievances, sexual harassment and work hours. The organization has work place policies on HIV/AIDS, gender equity, child right protection. Systems are established for staff performance planning and review. Confidential HR systems are in place for employee data. 5. Partnering and Networking Point No. Checklist 1 The organization updates & maintains a service delivery map. 2 The organization regularly attends coordination/network meetings. 3 4 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response The organization has referral practices. The network and partnership practices facilitate experience and information sharing among partners on HIV/AIDS and OVC issues. 7 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 6. Adequacy of Physical Infrastructure Point No. Checklist 1 The organization has adequate office space and equipment . 2 Physical spaces are appropriate for planned activities. 3 Staffs have adequate space, lighting, supplies, and equipment to properly perform their duties. 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response 7. Financial Polices and Accounting Procedures Point No. 1 2 3 4 5 6 Checklist 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response A clear policy and procedure manual for budgeting exists and is readily available for all staff. Responsibilities for budget preparation and budget approval are clearly defined. Expenditures are tracked by budget line item, and recorded as they occur. Actual revenue/expenditure is compared against budget, variances are properly followed up and corrective actions are implemented in a timely. Budgets are prepared in accordance with the strategic plan and decisions/ priorities are made accordingly. Budgets are integrated in the accounting system. 8 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 8. Cash and Banking Point No. Checklist 1 The policy and procedure manual for cash control, banking and cash flow are available to all staff involved in finance. 2 All funds and claims received are properly recorded and banked intact. All payments are properly controlled, authorized and supported by full documentation. Bank balances are properly reconciled with bank statements, independently scrutinized and approved, and reconciling items are subsequently cleared. All checks are signed by two officials of appropriate authority after scrutiny of approved documentation. Claims from advances are accurately compiled and analyzed so that reimbursement is received promptly. 3 4 5 6 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response Manual Cash receipt, deposit slip and the accounting system Payment documents Monthly bank reconciliation documents Authorization letter, cheque stub and level of authorization 9 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 9. Accounting and Record Keeping Point No. Checklist 1 The chart of accounts’ structure is sufficiently detailed. 2 All expenditure is authorized, controlled, balanced and accounted for. All expenditure is properly coded and allocated in accordance with an approved chart of accounts. A trial balance is extracted and balanced every month. 3 4 5 6 7 8 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response Annual financial statements are issued, audited by external auditors and approved at the end of the fiscal year. The accounting system is computerized. All Staffs are on payroll records and salary amounts correspond to employees’ contract. Time sheets are used as the basis for charging salaries to different funding sources. 10 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 10. Administration and Logistics Point No. Checklist 1 All purchases and procurements are made in compliance with the purchasing and procurement procedure/ manual. The purchasing and procurement procedure/ manual covers critical areas of: Roles and responsibilities Review and approval Code of conduct Procurement planning Monitoring and reporting There are clearly defined levels of authority for approving different values of purchases. A Good Receiving Note is completed by store keeper for all goods received. Procedures for procurements are periodically reviewed and modified as needed. Existing systems and practices ensure that all donorfunded purchases are acquired according to the terms specified by donor. 2 3 4 5 6 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response 11. Stock, Inventory, and Fixed Assets Management Point No. 1 2 3 Checklist 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response Policy and procedure exists for inventory of fixed assets. Fixed assets are recorded in a register for controlling of their status. Fixed assets are periodically inventoried and all missing items are followed up and documented. 11 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - The organization has insurance coverage for all properties/assets. 4 Vehicle Management 5 Logbooks are maintained for each vehicle. 6 Inventory of vehicles is made annually. 12. Management Information System Point No. 1 2 3 4 Checklist 0 1 2 3 No In Part Mostly Yes Not Relevant Evidence of Response The organization has a defined information sharing process. The annual report includes program reports and financial statements. Best practices and innovative activities are documented, reported and shared with stakeholders. The organization has a monitoring framework. 12 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - Summary Profile POTCAT Assessment Name of Tier II Partner: Date of Assessment: Assessment Sheet Completed by: Rating Scale (1) Beginning Steps (meeting up to 25% of agreed upon Checklist ) (2) Showing Results (meeting up to 50% of Checklist ) (3) Systematically Achieving Results (meeting up to 80% of Checklist ) (4) Model System for Technical Exchange (meeting up to 100%) A. Organizational Capacity General Management 1. Governance & Leadership 2. Strategic & Operational Planning 3.Structure: Roles and Responsibilities 4.Structure: Delegation of Authority and Decision-Making 5.Staffing and Human Resource Management 6.Partnering and Networking 7.Adequacy of Physical Infrastructure Finance 8.Financial Planning and Budgeting Points (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) 13 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - 9.Cash and Banking 10.Accounting and Record Keeping Logistics & Information 11. Procurement 12. Distribution, Stock and Inventory Management 13. Management Information System (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) (0)(1)(2)(3) Consensus Priorities for Capacity Development Action Plan Priority Component Target Indicator of Improvement 1 2 3 Organizational Documents as Evidence: The assessment team writes the evidence that justifies its response. Most responses require actual evidence, which may include: a. Verification of documents and records, such as: annual and long-term plans; personnel records; job descriptions; organizational charts; financial reports; financial statements; and, bank statements b. Examination of system tools and manuals, such as registers, vouchers receipts book, purchase requests, inventory forms, policies and procedures manuals, and supporting forms c. Physical examination of facilities, such as store rooms, warehouses, and other facilities that maintain inventory. Component Governance & Leadership Accounting and Record Keeping Purchasing and Procurement Criterion Organizational chart Data entry Journal entry Purchasing and procurement policies Evidence Found The organization no longer reflects the current organizational structure Accumulated vouchers are waiting on clerk’s desk for entry A sample of journal entries contained codes which could not be interpreted All purchasing and procurement staff have a copy of updated, compiled purchasing and procurement procedures at their desk 14 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - and procedure Stock inventory and fixed Storekeeping Some stock records are out of date asset Where actual evidence is not available, responses need to be substantiated by interviews with staff. Examples of Evidence Documents for Organizational Assessment Put numbers in chronological order 1. By-law or constitution of the 2. Revised organizational chart 3. Profile of board members 5. Annual reports of recent years 6. Weekly, monthly and quarter organization 4. Minutes: board meetings, mgt meetings, department level reports meetings, general staff meetings, stakeholders meeting, general assembly meetings 7. Board selection Checklist 8. Certificate of registration 9. Project proposals 10. Strategic plan 11. Various MOUs signed for projects 12. Job description 13. Staff promotion and acting 14. New staff orientation documents 15. Organization’s newsletter 17. Need assessment document 18. Payroll payment document/ formats/policy 16. Beneficiary cost sharing procedure/ guideline 19. Staff performance evaluation mechanism 20. Staff personal files 21. Service sub-contracting 15 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - format/policy/procedure 22. Work place policy format/working guideline 23. Network membership 24. Referral mechanisms/guideline in documents/manuals 25. Internal auditing place 26. financial manual 27. Administrative manual 28. Personnel manual 29. Purchase requisition form 30. Petty cash payment voucher 31. Checque payment voucher 32. Cash/checque receipt voucher 33. Receipt voucher 34. External audit report 35. Sample purchase document 36. Goods receiving note 37. Issue note 38. Bank statement and reconciliation 39. Asset management manual 40. Store requisition or issue voucher 41. Inventory record 42. Stock card 43. Bin card 44. 45. document/mechanisms 16 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - Site Visit Summary Current Operations (Yr) Operating Expenditures Number of Full Time Staff Number of Project Sites Range of Services/Interventions Offered ________________________________________________________________ A. Brief Description of the Challenge of the Organization B. Findings of Team C Recommendations 17 PC3 ORGANIZATIONAL AND TECHNICAL CAPACITY ASSESSMENT TOOL – (POTCAT) - D. Degree of Consensus on the Assessment Tool Results E. Target Indicators for Year 1-2 Capacity Development Action Plan 18