Assessing Your Partners' Financial Health
This workshop will equip you with the tools and know-how to assess your partner organizations’ financial systems, capacity and resources, to help make decisions on funding and other support.
This course is designed for staff in NGOs and funding agencies whose role includes assessing potential and existing partner organizations’ financial capacity to manage project funds.
For those with no previous financial management experience or training, it is recommended that they first attend the companion course – Financial Management for Program Staff.
By the end of the course, you will:
- Explain key financial management challenges facing partners, and the consequences and risks for program implementation
- Describe best practice financial management models and assessment frameworks
- List the key financial roles and responsibilities for a governing body and the signs of weak financial governance.
- Analyze partners’ audited financial statements including reviewing the auditor opinion and calculating financial ratios.
- Prepare for a partner site visit to assess finance systems and practices
- Perform a ‘due diligence’ review for a partner organization, using a checklist approach to identify key risks, conclusions and actions.
Our training puts the learner at the center, using practical and fun learning activities supported by easy-to-use materials. We share tools and techniques that can be immediately used in your work.
Welcome and overview
- Introductions, expectations and program overview
Good practice frameworks
- The Four Building Blocks of financial management and recommended best practice
- The Seven Principles of financial management
The desk review
- The desk review process
- Key documentation – what should you ask for
Reviewing the annual financial statements
- What to look for in Annual Financial Statements
- Using ratios to give clues about financial status
- Making sense of the auditor’s report
Financial sustainability and governance
- What makes a financially sustainable organization
- Using the financing mix matrix to assess partner income
- Financial management roles and responsibilities of the governing body
Reviewing other documentation
- Budget monitoring reports – how are they used internally and what to look for
Putting it into practice
- Practicing the desk review
- Assessing risk
The field review
- Examination The field review process
- Key people, documents, and questions
- The Four Internal Control actions
- Some warning signs of fraud
Summary and action planning
- Summary of key learning points
- Action planning
- Evaluation and closing words