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CIMA Insight, October Edition 2007
In her third report from Africa, Janet Humphreys ACMA, financial controller, GOAL Uganda, looks back on an incredibly challenging but rewarding role. And she looks at how other qualified accountants can work in the developing world.
I have many years’ experience in the corporate world, but joining a non-governmental organisation was a culture shock. In one of my first project meetings I thought I would never get used to it. The programme staff talked about producing IEC/BCC materials for IDPs, doing KAPB surveys and using PHAST in interventions. That was only five minutes into the meeting. Luckily, the look on my face gave away my confusion and interpreters were quick to assist.
Here’s a summary of some of the terms I just used:
Intervention - the name often used to describe project activities
IEC - information, education and communication
BCC - behavioural change communication
IDPs - internally displaced people living in camps in their country of origin. Refugees is the term used for cross-border movement
KAPB - knowledge, attitude, practice, behaviour
PHAST - participation, hygiene and sanitation for transformation.
For finance professionals there are also adjustments in the way you think and work in an NGO. Some things are familiar - a debit is a debit and a credit a credit, for example. There are annual audits of accounts by external auditors. Paper trail and good filing are important, as are standardisation of processes and systems.
Minimum waste, maximum impact
However, I was surprised that many NGOs get donations from government or state resources as well as private donors. So it’s not just your organisation’s policies you need to be aware of and comply with. You work with the local programme team to develop budgets for their proposals when applying for grants. Donors usually have their own guidelines, rules and reporting formats.
If funding is awarded, you need to ensure that you are familiar with all areas of donor compliance. For example, procurement rules such as how many quotations are needed for a purchase, and expenditure rules such as getting permission in advance to re-allocate money to a different budget line.
Unlike a commercial company where profit is a primary motive, your aim is to spend all the funds of the grant, with minimum waste and maximum impact. You could have many different projects for different donors running at one time, so it can be challenging but never dull. We use detailed monthly rolling budgets and forecasts to avoid an expenditure rush at the end of a project.
Hugely rewarding
One thing that helped me understand the different aspects of NGO finance work was attending a three day course with MANGO (Management accountancy for NGOs). The course looked at the practicalities of field based accounting, cash systems, internal controls, multiple donor reporting - plus the impact of cultural differences. GOAL has also provided good support. It has a head office finance team that works directly with you and online support via a best practice website. It also has a roving financial controller to visit, provide training and standardise processes and systems across countries.
A hugely rewarding aspect of work here in Uganda has been working with local non-finance staff - training them in using budgets, setting up Excel reports for their work and providing financial information to assist in decision making. It’s easy to forget that there are many people who just don’t like numbers, so taking the time to review and work directly with programme staff is as important as closing the books at month-end. After all, these people implement the activities you report on. Good communication with them is essential to ensure successful project management.
Again MANGO has helped out in Uganda by providing training courses in finance for non-financial managers in NGOs. Mind, it can work against you when colleagues return from the course, asking for ‘core cost budgets’ and detailed discussions about things that used to take five minutes to review.
But these are all great ways to integrate finance with programmes – and ensure that the stereotype of grey-suited accountants, churning numbers on their own in a corner is put firmly to rest.
Now my contract is coming to an end, I’ve decided to take another post with GOAL. I am now preparing to make my successor’s transition into the role as easy as possible. He is new to NGO work, so I hope I’ll be successful at interpreting this new language for him!
GOAL needs you
GOAL needs accountants to continue its work in 11 countries in the developing world. They should be willing to devote at least a year putting their skills to good use while also gaining tremendous life and work experience.
The next GOAL UK information evenings will take place in:
London – 25 October
Cardiff – 26 October
To register, email – makeadifference@goal-uk.org
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