resource mobilization and financial management

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RESOURCE MOBILIZATION FOR
GOVERNMENT PROJECTS
Presented by:
Irene Ng’ong’a
ICPAK PUBLIC FINANCE MANAGEMENT SEMINAR
Resources 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
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
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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
1. Assessment of the current situation
2. Identifying required resources for the project
3. Comparing what is needed and what is available to
determine the gaps
4. 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 RESOURCE
MOBILISATION PLAN.
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
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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
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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.
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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.
Assessment of interest
 Targeting associates (Informal)
 Telephone calls
 Electronic mails
 Meetings over tea or lunch
Create 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
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
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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 relevant
NEW STRATEGIES NEED TO BE SOUGHT AND
IMPLEMENTED
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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
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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.
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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.
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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.
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.
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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.
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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
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Assessment of the strategy of the programthe 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.
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?
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Role of the governing body in mobilizing
resources: Is the governing body
appropriately exercising its role in
Guiding the formulation of the RM strategy
responsive to strategic direction
Setting policy rules regarding acceptance of
tied funds, private sector funds.
Staying open to possibility of new donors.
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.
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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?
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?
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.
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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=RWyXecX
r9bc
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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.
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.
THANK YOU
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