Submitted By introfun
Why it is important to set in place procedures that review and evaluate the planning and monitoring of financial performance
Monitoring and evaluation are important management tools to track your progress and facilitate decision making. While some funders require some type of evaluative process, the greatest beneficiaries of an evaluation can be the community of people with whom your organization works. By closely examining your work, your organization can design programs and activities that are effective, efficient, and yield powerful results for the community. Definitions are as follows: Monitoring can be defined as a continuing function that aims primarily to provide the management and main stakeholders of an ongoing intervention with early indications of progress, or lack thereof, in the achievement of results. An ongoing intervention might be a project, program or other kind of support to an outcome. Monitoring help organizations track achievements by a regular collection of information to assist timely decision making, ensure accountability, and provide the basis for evaluation and learning. Evaluation is the systematic and objective assessment of an on-going or completed project, program, or policy, and its design, implementation and results. The aim is to determine the relevance and fulfillment of objectives, development efficiency, effectiveness, impact, and sustainability. An evaluation should provide information that is credible and useful, enabling the incorporation of lessons learned into the decision making process of both recipients and donors.
Analyse the effectiveness of financial monitoring and planning
Typical elements of financial analysis include:
1.Budgeting - creating a budget setting out planned cash flows in and out of the business. By monitoring a cash flow budget it is possible to identify any potential crisis points where liquidity…...