CCRDA staffs unveil the maladministration of the consortium in their Exit Report. We directly publis
INTRODUCTION
This report is prepared to fulfill the formal terminal report due to my resignation from the Regular Finance Officer position of CCRDA. As we know, there are a lot of strong points to be mentioned but this report focuses on areas which need attention of the management. Since there are more than 302 members which expect to be model in all aspects, I tried to mention where to emphasize so as to meet the position of CCRDA.
As much as possible, I have tried to make the report more precise and focused of the areas under Finance & Administration Core team mandate because if the systems in these core team functioned well CCRDA can achieve its target cost effectively.
This report is not to criticize any core team or individual but to bring to attention because they may have impact for the association. As we know, CCRDA is in a holistic change process and this report is prepared to consider these points in the process of implementing the changes in full-fledged. Therefore, the mentioned points are open to be considered to improve the current systems or can be taken as garbage because they are my opinions I observed during the last one year.
This report has five main parts. The first part is about the introduction of the terminal paper. In the second part I have tried to mention the expected responsibilities of the position. The third part deals about some efforts which performed and the fourth section tried to list out challenges and gaps what I have observed & need attention of the management. The last part of the terminal paper deal about my recommendations which need attentions of the association
2. MAJOR RESPONSSIBILTIES OF REGULAR FINANCE OFFICER
Ensure that all transactions are conducted in accordance with acceptable practice of books of accounts.
Coding & checking all regular program payment request documents
Prepare Financial Reports/balance sheet, Income & expenditure, cash flow/
Monthly financial monitoring reports to be used by management.
Annual financial report for management and annual audit
Interim financial reports based on donor requirements and submit for auditing
Administrating the accounting software
Checking regular payment vouchers for completeness of documents
Reconciling regular program fund accounts
Closing temporary accounts at year end
Prepare the chart of account indicating activity and account number and issue to all departments and services for referencing the appropriate budget while processing payments for the tasks to be undertaken.
Check expenditures against budget while checking payments, and Provide feedback for over/under utilization of budgets to take appropriate measures or adjustments
Check the accuracy and reliability of accounting data
Respect Government rules and regulations.
Meet Donor requirements by
Maintain separate ledger account to show the movement of each donor’s grant;
Open separate bank accounts, operate and reconcile timely;
Prepare financial reports in the manner and formats prescribed by them and send timely;
Facilitate separate audit to be conducted by external auditors and send them the audit report timely.
Prepare Finance policies and procedures guidelines and revise based on new developments and changes.
Revision & amendment of the Financial Policies & Guidelines and financial administration issues
Ensure that all payment vouchers are supported by valid, checked and authorized documents
Checks and ensures correctness of petty cash records before replenishment
Ensure that all financial reports and documents are avail to auditors and follow up the audit
Verify the causes and clear any abnormal account balances
Perform other related duties as required
3 MAJOR ACCOMPLISHMENTS DURING MY STAY AT THE POSITION
The Financial Manual of CCRDA has been revised based on the new Strategic Planning Management and charity law
Preparing financial statements quarterly and annually
Follow up the annual audit of CCRDA’s 2009 accounts and six months of EED.
Participate in preparing financial proposals of different donation request proposals
Preparing special reports to donors as per the requirements stated on the contracts
Tried our best effort CCRDA policy and procedure and government regulation to be adhered during payment process
Semi annual financial reports for 2010 and their annexes are prepared by passing & posting all necessary transactions of the period covered.
I have tried my best suppliers and consultant documents to be supported by all legal and procedural requirements so as to meet CCRD interest.
Outstanding balance of staff receivables, Payables, Institutional Support Balances and other related long outstanding balances are cleared by considerable amounts
4. CHALLENGES AND GAPS WHICH NEED ATTENTION
CCRDA has many strong points from which other organizations can share experience. Mentioning these strong areas may be important but I believe it is more important to focus on weak areas especially for an organization exercising change. The gaps listed here under are my observations gained from day to day operation and discussions with other staff members during the last year.
Less attention and delay in decision to system changes or revision which demoralize employees to propose new way of doing things. Ideas were raised to check the store management system, purchasing, financial system, property management, documentation and the like but not pass over oral agreement. Those systems, procedures and policies which are creating problems on day to day operation can be revised/drafted by the staff in FACT had it been there were commitments.
My expectations when I join CCRDA before one year were better professionalism, appreciating professional comments, model policies and procedures/Financial, Store & property management, Purchasing, Maintenance both minor & major, Contract management, HR management & Development etc/, from which the NGO sector shares experience but most of them, specially the policies & procedures below my expectation.
CCRDA has accounting system customized from access developed by individual IT specialist. Regarding the system
Detailed gaps the system has were identified
Discussions were held with the developer and FMT staff
We were agreed either to change or upgrade the system. But it is not yet finalized and it hiders FMT to adjust some reports and the chart of account based on the current situation of CCRDA
Less common understanding on financial procedures of the association and considering payments to be effected without basic supporting documents specially within FACT
Payment requests present without referring the budget source and account numbers and poor follow up on budget utilization
Lack of on time information on new financial and in kind grants so as to record on financial system properly
No clear demarcation between regular and grant financial activities which may result in less accountability
Misunderstanding of generalist tasks and specialization
Lack of proper communication
Few bad behaviours assuming he/she is more than any body to CCRDA and if not the association will “not exist”
Knowingly over looking procedures and policies which seems self centered
These days, bypassing CCRDA policies & procedures and government laws is increasing at in contrary to the interest of the association. So it is the right time to take corrective actions before result in disorder
Some receivables are not cleared as the balances expected to seen because the task is conditional rather than system based
The above mentioned points are general and can be solved by installing sustainable systems. The points may not be changes when seen by CCRDA’s management but I put what I believe. I think CCRDA has the capacity to be a model of NGOs and therefore it is simple to make smooth the changes by the existing staff. There are a lot of positive improvements which are by far complicated than the existing problems.
I believe there are a lot of ups and downs during change process. Some employees and stake holders will be change agents, few may be resistant to the change which is the difficult part of change and others may choose silence. Therefore, to line up all employees as change agents, the challenges and even the coffee stains shall be addressed well. CCRDA has in house capacity to do so and therefore it is important to give attention the existing problems before they become deep-seated.
5. PROPOSED RECOMMENDATIONS
My one year stay in CCRDA equipped me with best experiences in the association in particular and the NGO sector in general. I strongly believe CCRDA to continue as the giant umbrella in the country. But environment will not wait as it is and therefore the secretariat, the members and other stake holders should continue to work day and night. The staff should feel sense of ownership in all matters and the working environment should be suitable for this. During my stay I discussed with different staff members regarding the working environment but I became surprised when many of them are not mentally here because it is out of my expectation.
I therefore, strongly recommend the ideas listed here under (which are not new for you but just to remind) to be taken in to account if they are valuable.
Revise the uncompleted and open to biasness purchase policy
The control of purchased materials and spare marts need very close follow up and the very loose system must be changed so as to use the limited public resource as the principles of the three E’s.
The purchase system in CCRDA is not consistent and policy & procedure based.
Some suppliers requested to present document after the committee finalized & proposed the winner
Some suppliers have chance to adjusts their price based on the other competitors,
Others accepted to compete by other entity’s trade names, and others also recommended /failed the competition by similar previous points.
If there is difference b/n the supplier’s documents and the actual transaction, the country law obliges to inform the concerned government body but there is no practical action
Allowing to change documents (Trade names, tax related documents etc) after the competition is over i.e. awarding unfairly
The main cause for loop holes is the absence of approved updated purchasing manual.
Fixed asset management, Vehicle spares, vehicle maintenance, unregistered items found in store, CCRDA facility management may seem simple but need special attention as they have loop holes.
The replaced old spare parts of maintained vehicles must be returned to store and proper controlling mechanisms should be practiced specially for selected costly items
The basic policies and procedures of CCRDA and government laws & regulations should be adhered to minimize the current contrary incidents
All contracts should be treated equally and in the way that helps to keep CCRDA’s interest to avoid the current poor contract management. Rather than system and CCRDA interest, some contracts are personal interest based which are very difficult to systemize them unless clear stand is held by the management. The instance mentioned here under is among them:-
If contracts began to be administered depending on individual’s interest rather than in-placed procedures, it is hardly possible to finance to perform by adhering existing policies & procedures
Rift valley hotel has total more than Birr 230,000.00 but no one needs to enforce Rift valley as per the contract
We recommend them to issue check which will be cashed after all payment (Rift Valley has with CCRDA) settled but they are not willing to do so
Rather FMT has been requested repeatedly to pay them all bills.
Finally, the total outstanding balance is decided to be settled against their unpaid bills but reversed orally to pay all bills. Therefore, I strongly recommend to adhere the conditions on contracts
Very surprising, Rift Valley request finance other additional bills after all outstanding bills are settled which in contrary to the commitment written by Rift Valley.
The existing unplanned, very fragmented, high processing cost and sometimes in contrary to the nations law should be reassessed and systematized to meet CCRDA’s interest
The strength of CCRDA finance reflects where CCRDA is but some times FMT is expected to do as per the orders of individuals rather than policies and procedures of the association
The different material purchased to trainings, workshops and conferences should managed properly and all remaining items must be returned to store
In my opinion the current structure of FACT is not suitable to CCRDA. There are a lot of confusing things which need to be addressed. Administration and FMT should either divorce or work as the principles practiced by organizations of similar structures. The practice on ground and the expectations may be different. Some basic activities/responsibilities are hindered or are going as “Business as usual” Besides various impositions has been observed on FMT not to comply the financial rules & regulations.
The communication among core teams and individuals from project proposal to completion is very important. But the finance staffs do not participate during negotiation, and project agreement which is creating problems during report preparation and raising transactions. Some times the misunderstanding is becoming serious which can affect the smooth donor-CCRDA relationship
Most misunderstandings can be resolved by close follow up and periodic staff discussions especially discussion held at core team level. Most of the time FMT and Administration are seen as if they are organized in different core teams. I strongly recommend revising the current structure of FACT if FMT is expected to meet requirements set on the SPM.
As an umbrella organization, clear updated documentation should be avail regarding the amount of annual membership fee and payment status of each member
Finally, CCRDA’s management and staff can be models to the NGO sector in all matters because CCRDA is exercising pain full change process. The capacity in CCRDA is more than enough to make CCRDA model to the NGO sector if managed well. Besides, the vision of CCRDA can be taken as a figure to the NGO sector so as to play key roles for the
LOVE,
GOOD LUCK.
WOLDEABRHA BERHANE
woldber@yahoo.com
INTRODUCTION
It is to be recalled that I have been working with the Consortium of Christian Relief and Development Association (CCRDA) under various capacities for the last nine years. However, I have recently submitted a letter of resignation to OED of CCRDA on a purely personal accord. To this end, I have officially requested to prepare and submit terminal report with regard to my resignation.
Accordingly, this terminal report incorporates four main parts, which includes (1) the positions I held during my office tenure. (2) Accomplishments of my entrusted duties and responsibilities with regard to the positions I held, (3) Intervention areas of the organization and its achievements (4.) and the drawback of the organizations, which I believe have to be rectified and ensuing recommendations
1. Before I pass to my accomplishment, I will try to elicit the positions I held as follows:
From April, 2009 to July, 2011 as a Senior Accountant,
From Jan, 2007 to March 2009 as a Program Accountant
From Jan, 2003 to Dec 2006 as an Accountant
From July, 2002 to Dec, 2002 as a post man
At this junction I will try to precisely focus on my major accomplishments; hence CCRDA and the job description provided for these positions discloses more what I did in CCRDA for the last nine years. The works accomplished under the above indicated positions are:
Ensuring internal financial procedures, system, policies and control are applied and complied with organization financial manual.
Reviewing financial documents of sub grantees to ensure that all financial procedures compliance inconformity to the binding agreement.
Providing technical support for sub grantees and program coordinators in the preparation of sub grantee’s budget modification.
Recording of financial transaction of the organization on the existing accounting software.
Preparing payroll sheet monthly
Monitoring the project site with program coordinators to ensure whether the planned activities have been done as per the project agreement.
Preparing of timely financial report for donors and management team.
Reconciling of cash registration book Vs bank statement monthly.
Maintain financial documents and reports in appropriate manner for auditing and verification.
Closing of year 2010 Accounts and preparing year 2011 chart of account based on five years program plan.
Having said this, regarding my accomplishment, let me state something about CCRDA. As it is well known, CCRDA is an umbrella membership organization that has been working on different intervention areas to meet the felt interests of its members’ organization and other CSOs partners through:
Facilitating access to funds for members and CSOs for implementation various development interventions, including HIV/AIDS, Environmental protection, and Reproductive Health, among others.
Organizing capacity building training for its members to achieve the desired objectives in an efficient, effective and economical manner.
Preparation of various publications, documentation and dissemination of good practices and updated information to members and partners to realize CCRDA objectives.
Enhance and represent members, realize effective coordination and networking among CCRDA members and improved partnership between CCRDA members and relevant government authorities at regional levels.
Building the capacity of the Secretariat to adequately serve the membership in a very professional, efficient and equal footing manner to achieve the desired goal.
Beside the strengths and some improvement that has been observed in the Organization, there are some witnessed drawbacks that needs the dire attention of management and board members:
4.1 Organizational Property Management, for example,
Spare parts have been issued from warehouse for maintenance of CCRDA vehicles; however close follow-up is not made by the concerned body whether the issued item or spare part has been used properly for the intended purpose. As a result, most of the organization’s vehicles are out of function or damaged within a short period of time without delivering the anticipated service.
Recommendation: A person who has a necessary privilege should be assigned to inspect and certify whether the vehicles are properly maintained and carried out as required and as per the instruction of the Property Management Officer. Moreover, the Organization should strengthen internal controls over issuance of spare parts through prior approval of items release from the warehouse.
The income that has been generated from the rental of tent is not an expected income. To this end, most of the time the tents have been provided for individual as well as business organizations on a rental basis. However, Property Management Officer has been charged them only 50% of the total rental income, the rest 50% is made free of charge. Moreover this 50% free of charge is made without the consultation and involvement of others other concerned body; rather it is simply approved and granted by a single individual.
Recommendation: Any granted/donation/free charge made in the organization should be done in consultation with and consent of the OED and management team in a bid to ensure integrity, transparency, accountability, and for effective utilization of income generated from the internal source.
There is granting/donating of old equipment for unknown body by one or two individual without the consultation of financial management team and other concerned body. However, CCRDA Financial management team is responsible for managing fixed assets of the organization.
Recommendation: Whenever there is the disposal or granting or donating of any old equipment, the financial management team should be informed in order to trace whether the disposed item is recorded as a fixed asset or not. Thus, the financial management team can easily identify and made necessary adjustment for the item disposed to reconcile the fixed asset registration of finance with that of property management officer record.
Internal controls over vehicle utilization and mileage controlling mechanism is not satisfactory, and often there is a trend of discrepancy. For example some staff and management team uses CCRDA vehicle for personal use and are properly charged monthly. On the other hands, some of them have not been charged properly for vehicle they used for personal purpose. Moreover, vehicles utilization policy of the CCRDA is not permitted to use vehicle more than 100kilometer limit out of the prescribed radius. However, many CCRDA vehicles have been damaged due to accident committed by individuals. To this end, nobody could penalize them for the mistake committed by these individuals.(Ref Vehicle Damaged by previous Director of, FACT)
Recommendation: There should be sound internal controlling policy over vehicle utilization. And whenever the vehicle is out of the prescribed radius and the mileage reading is more than the KMs limits, official approval should be required by responsible body. To this end, cost benefit analysis report must be done by property management office special for CCRDA vehicle deployment every month, and submit to Monitoring and Evaluation to evaluate the overall movement of CCRDA vehicle.
Administration of Human Resources
It is abundantly clear that the new organizational structure was approved by the CCRDA board members in the year 2009. Following this, 41 staff was placed based on their qualifications, and educational backgrounds. To this end, these staffs are performing their work very well and on the other hand, there is a staff who was assigned on a post of Membership and Networking Development assistant following the approval of the placement committee recommendation, but this staff hasn’t started her/his work, yet.
Recommendation: HR should assign and adjust the number of staff with the desired volume of work in the organization based on their educational backgrounds and experience to avoid possible placement of the idled staff. Moreover, if there is a new post in the organization it has to be clearly announced, rather than doing “favoritism” for individual. In my mind placing staff without any computation on a new position has a negative impact on ensuring transparency.
Substantial amount of money has been incurred for publishing and printing different materials; like CCRDA annual report, broacher and different printing material that are believed to promote CCRDA’s visibility. However, rather than using this material for promotion/ advocacy of CCRDA and using for the intended objective, this material has been stored in warehouse for a long period of time and have eventually become outdated. For your reference, you can visit the store of CCRDA which has been under the custody of store keeper.
Recommendation: The responsible core team must have a proper planning for publishing and printing materials to determine what is needed for the intended objective, how much, where and when.
Tracking of overseas travel advance and its settlement, for example,
Advance payments that have been made for overseas travel and its settlement is not as per existing rules and regulation of the organization. For example, advance payment taken in respect to contingency and reserve is not reasonable. To this end, there is a discrepancy between numbers of training/workshop days that has been stated on the invitation letter with that of number of days in which advance has been taken for. Moreover, additional travel advance has been made for an individual even though costs related to the workshop are covered by the organizer.
Recommendation: All advance payments made for overseas travel must be made as per the existing rules and regulation of the organization. In the meantime, when ever there is additional advance, management should aware and approve the travel that clearly indicates the purposes of the travel. Hence, transparency, accountability and integrity are key components of good governance.
The decision that was made by the committee to write-off the advance taken by OED of the CCRDA is not made in accordance with the rules and regulations of the organization. However, this is not a privilege of committee’s which was established by a single individual to write-off such significant amount of Birr 64,000 without the consultation of board and management team. In my mind this serious issue is not a mandate of three staff to write-off the advance.
Recommendation: Hence, OED is directly responsible for the board members, any complaints and grievances raised by OED should be submitted directly to the board members as part of a drive to ensure integrity transparency and accountability.
Procedural and transparency issues on decision making, for example
On a general basis, I do not have any reservation for the recognition and the award provided for the successful staff. This should rather be encouraged and continued as part of culture in the organization. However, the only reservation I have is on the selection process, which I believe is not on the right track and procedural. Furthermore, there is a discrepancy between the amounts of award recommended on the minute with that of the actual payment made to the successful staff.
Recommendation: Standard selection criteria should be put in place and ad-hock committees should be established to identify successful staff to make the selection more transparent.
The perception you have for finance people is very less, for example,
It is known that different training programs have been conducting in the CCRDA premise as well as other places to build up the capacities of its member and CCRDA program staff. However, the perception to capacitate finance people by organizing different short term training both internal and external is comparatively less. As a principle it is impossible to separate program staff from finance people, and finance staff from program staff because they are interdependent. Discriminating finance staff from other program staff has its own negative impact on the organizational development, synergy and team building.
The commitment that, HR has to alleviate the problem of human power in FMT is very less. For example, immediate action has not been taken by HR to replace resigned staff. rather the replacement takes a long period of time. As a result many problems have been facing in FMT in producing financial report within due date and on accuracy of the work done due to the volume of the work.
Recommendation: There is a need to change the deep-rooted perception and impression of the management of the organization towards the finance staff and provide equal training opportunity to build their professional competencies on the basis of equal footings. Accordingly, both the finance and program staff has their own quality/value and profession on their fields of discipline and contributes their professional experience for the development of organization. Moreover required man power should be assigned in FMT to provide quality service.
Finally, Recommendation I have for Financial Management Team are:
FMT should be autonomies on finance related issues like policies and procedures of the organization.
FMT should perform its work independently without the interference and influence of others
FMT should do its level best to ensure professional ethics of accounting rather than to fulfill the individual interest.
The fuel allowance that has been paid to the management team should be made by coupon and settled against the actual receipt without any discrimination between management team. To clear the year 2010 audit comment that was stated on audit report, to do this I highly recommended that those payments made in respect to fuel allowance in cash to management should be stopped up.
FMT should be strengthened towards managing fund resources properly in order to achieve the desired objectives in an efficient, effective and economical manner using various procedures as part of endeavors to ensure financial sustainability, build trust with outstanding and incoming donors, ensure continuing flow of fund from donor s, and get acceptance from the community and Government. This is also equally important to build the image and enhance the visibility of the organization and ensure financial sustainability in the organization. Hence having sound financial management system is the basic foundation for the sustainability of the Organization.
I thank you truthfully MESHESHA SHEWAREGA (DR.), ATO ADANE SHIBRU and my colleagues of financial management team staff members FOR their consistence support and hard work.
destabkele@yahoo.com
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