An Assessment of Management of Finance in a project executed in a consortium basis: the Case of Health Poverty Action (Lead), MCMDO and EPaRDA
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Date
2018-06-23
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Addis Ababa University
Abstract
The general objective of the research is to assess the Management of Finance on a project executed in consortium basis by considering Health Poverty Action as a lead, MCMDO and EPaRDA. To achieve its objective, the researcher employed descriptive research approach with survey type and both primary and secondary data were used. The data were collected using questionnaires and supplemented with document review. In this study the researcher employed purposive and judgmental sampling techniques. The analyzed data were presented using tables, mean and percentage; in addition, the researcher presents the finding of the research using a descriptive narrative.
As per the findings in this study the researcher concludes; for those consortiums which is led by HPA, the project finance management have been implemented by using the financial management cycle i.e. planning, budgeting, then executing (Managing and controlling) and measuring (reporting and auditing) where each cycle is led by HPA., The management of finance for projects implemented by consortium arrangement which is led by HPA is impacted by the presence of the risk assessment during the initiation as well as during execution, the presence of rule and regulation by the implementing partners , the presence of the work plan along with the financial resource, conflict and delay during agreement signing with the local government for the implementation, lack of stockholders participation during planning and execution of the intended project and not applying the requirement for value for money during the budgeting and execution., The financial planning procedures employed by HPA for projects implemented in consortium arrangement includes; Planning project activities with the required resources, Prepare the budgets as per market value as well as previous budgeting of similar projects; considering the existing structure of the organization and the financial controlling mechanisms employed .The controlling and reporting process throughout the project life of those projects implemented in consortium arrangements includes; the presence of standardized financial recording system, the presence of adequate archiving system for those financial documents during execution as well as after the end date of the project as per the donor requirements, the presence of segregation of duties by the implementing partners during the execution of the project activities, and the presence of standard reporting procedure.
The researcher recommends the organization to conduct risk assessment related to finance, to do participative financial planning, state and communicate clearly the expectations of the project to the concerned staff, aware project team to internalize nature and category of costs, and do current market survey, practice the development of contingency budget, prepare budget against actual expenditures report ,do value for money analysis (earned value management) and letting stakeholders to know how budget is utilized , to have a system to allocate costs across both project activities and the anticipated time.
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Keywords
Management of Finance, Project, Budget utilization, consortium implementing partners