Document

Report
Financial Management
Harmonization and Alignment:
It’s All About Results
''Financial management in the health sector is a
sacred responsibility because it ensures the health of
the people“, Minister of Finance, Sierra Leone
"You cannot have a reform of public health without
reform in finance management”, Permanent
Secretary, Ministry of Finance, Rwanda
17/07/2015
FM Harmonization
Results
 Funders use the same budget and accounting system ->
managers have the budget overview needed ->
resources allocated against key priorities
 One common budgeting and reporting system ->
transaction cost reduced -> time freed up to deliver
services
 Single audit of all donor and government funds -> more
efficient audit -> inefficiencies and misuse identified
 Joint capacity building also strengthen efficiency and
accountability
17/07/2015
17/07/2015
IHP+ Step-wise approach towards
FM Alignment
1. Align with country systems whenever they meet the minimum
acceptable level.
2. Harmonize among development partners, when all or part of
the national Public Financial Management (PFM) system is not
sufficiently developed.
3. Agree and support implementation of a joint action plan that
strengthens the national systems so as to bring about the
necessary changes to make the alignment feasible.
4. Not wait until all problems have been solved, but use
elements of country systems as soon as possible as part of the
process of improving systems and developing capacity.
17/07/2015
Two Important Tools
1. Joint FM Assessment: IHP+ has designed a process for doing
this. This is not a technical guide, it builds like other FM
assessments on existing internationally recognized principles
for doing FM assessment, but a gide to the process. This has
been developed, and used.
2. In order to specify the agreements on common FM systems –
called Joint Fiduciary Arrangements, partners enter into an
MoU for the JFA. It will greatly facilitate establishing such
agreements in a country, if standard language for the MoU –
or in some areas options for standard language – has been
developed and all partners have generally agreed to it. This
needs to be developed.
17/07/2015
Proposed Role of IHP+ in
FM Harmonization & Alignment
• Seek endorsement from development partners and
countries for Joint Financial Management
Assessment as the preferred option for partners
when doing FM assessments.
• Facilitate countries that wish to develop Joint
Fiduciary Arrangements (JFA), by developing and
seeking partners’ endorsement of agreed language
of the Memorandum of Understanding (MoU) that
governs a JFA.
• Facilitate direct support for financial management
harmonization and alignment.
17/07/2015

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