Financial Management & Procurement
Financial Management refers to the application of general management principles to the various financial resources of the project. This encompasses planning, organizing, directing and controlling of the financial activities such as procurement and utilization of project funds.
Financial management is generally concerned with procurement, allocation and control of financial resources for a project. The objectives of financial management under the non-profit making social programme are:
- To ensure regular and adequate supply of funds under the programme.
- To ensure optimum and effective fund utilization that leads the programme towards its predefined objectives.
- To prepare the budget and budget calendar for all the planned activities.
- To avoid misuse of funds/ resources available for the project.
- To enable decision makers to take corrective measures during the course of programme implementation.
Elements of Financial Management
Financial management under RMSA programme includes the following key elements:
- Budget for the project: Budgeting involves identifying specific tasks and objectives of the project and expressing these activities in financial terms as ‘Budget for RMSA’.
- Financial Planning: Financial planning comprises of planning fund flow, procurement plan, staffing, capacity building of staff, preparation of budget calendar etc.
- Financial Control and Monitoring: It is the responsibility of the finance head to monitor the utilisation of funds and ensure compliance of rules and regulations laid down for the implementation of the project. Statutory audit, internal audit, procurement review, financial MIS etc. are used as financial tools for control and monitoring.