Report on Project and Financial Management Training for Bo and Bombali Districts

GREEN SCENERY

SIERRA LEONE

REPORT ON PROJECT AND FINANCIAL MANAGEMENT TRAINING FOR BO AND BOMBALI DISTRICTS

MAY 2009

PREFACE

The training workshop on Project and Financial management for the Peacebuilding Committee members of Bo and Bombali was conducted by Green Scenery Sierra Leone in May 2009.

The training focuses on developing the capacity of the participants on the project management cycle for participants to develop and manage development projects using a participatory approach with much emphasis on Logical Frame work Analysis.

The two days workshop provides a comprehensive introduction to financial management without any prior training on financial management.

Joseph Lansana

232 76336014

Training Consultant

Fatima Institute

Makeni

INTRODUCTION

A two days training workshop in Project and Financial Management training was conducted by Green Scenery Sierra Leone to build the capacity of participants drawn from the city councils of Bo and Makeni, District Councils of Bo and Bombali and Provincial Secretary’s offices North and South.

The training is one of the ongoing activities of the peace building projects designed for Bo and Bombali districts respectively.

The two day workshop provides a comprehensive introduction to financial management without any prior training on Financial management.

AIM

The training aims at enhancing the capacity of participants in developing and managing participatory development projects with a sound knowledge in financial management skills.

OBJECTIVES

To understand and prepare high standard logical frame work
To identify and formulate project through a participatory approach
To assess the quality of a project document
To improve the monitoring and evaluation of project
To improve the capacity of participants in developing and understanding Annual Accounting Reports.
To sharpen the Financial recording skills of participant with out prior training in Accounting and Finance.
To enhance efficient management accounting systems in project implementation

PROGRAMME VALUE

The Green Scenery Project and Financial management training was designed primarily for Non Accountants and project managers who need to know about project management,Finance and Accounting in any organisation.The aim is to develop and manage participatory projects with a strong background in Financial Management that cuts through various techniques in a straight forward manner that requires no prior training in Financial Management.

PARTICIPANTS EXPECTATIONS

Effective time management by facilitator
Develop skills that could be replicated in future projects
Proper administrative arrangements for follow up of participants activities
Enhance high interaction between participants
Good cooperation between facilitator and participants

Training Out comes:

Enhanced ability to Develop highly participatory project
Deep understanding of project management cycles
Ability to develop high standard Logical Framework
Ability to assess and review quality projects
Develop effective Monitoring and Evaluation Techniques

Understand current Financial reporting standards as introduced by the Accounting Standard Boards UK.
Put on best face on their financial performance by the use of creative accounting.
Focus on performance measures, benchmarks and Non financial indicators.
Play team role in planning and control of project resources for which you are held responsible.
Develop techniques of Financial Management, which concentrate on the efficient use of capital.

TRAINING OUTLINES

DAY ONE

PROJECT MANAGEMENT CYCLE

Project Identification
Project Design
Project Implementation
Project monitoring and Evaluation
Project review
Viability and sustainability of development projects
Logical Frame Work Analysis
Functions of project managers

DAY 2

FINANCIAL MANAGEMENT

Annual Financial Reporting
What Managers Do?
Overview of Major Financial Statements
Accounting Information and decision making
Recording Financial Transactions
Analyzing and interpretation of Financial Statements
Managing Working Capital
Budgeting and Budgetary control

TRAINING METHODOLOGY

The facilitator used flip charts and power point to illustrate content and notes during presentation. After each topic, the facilitator asked participants for questions and clarifications. The facilitator also encouraged participants to contribute to discussions. It was agreed by the participants that krio be used as the language of instruction.

Training modules and Programme schedule were prepared and distributed to participants, which were extensively used during the training. For understanding of the topics discussed, the facilitator organized the participants into three groups(A,B and C) where they did GROUP WORK.

EVALUATION OF WORKSHOP

At the end of the workshop, participants were asked to evaluate the training. The following comments were made.

The training is highly participatory
Facilitation is good and highly professional
The manual for the training were well prepared
Participants were well selected by Green Scenery Sierra Leone
Training was lively and very interactive
Time was effectively managed
Food was Good
The venue for training was conducive
Skills acquired in training is useful for community development work

Note: See accompanying report (as annex) the training module prepared for participants

Appendix

GREEN SCENERY

SIERRA LEONE

PROJECT AND FINANCIAL

MANAGEMENT

TRAINING MANUAL

VENUE: MAKENI AND BO

MAY 2009

GREEN SCENERY

SIERRA LEONE

DAY ONE

GREEN SCENERY

SIERRA LEONE

AIM: To equip the

participants with enhanced designing and management tools to tailor projects more

adequately to meet the needs of the beneficiaries.

Training Objectives

Understand and prepare high-standard logical frameworks
Identify and formulate projects through a participatory approach
Write sound project documents
Assess the quality of a project document
Improve the Monitoring and Evaluation (M&E) of the

projects/Programme

Program Value

Project Management Cycle (PMC) is the method employed by NGO’s,

UN agencies, not-for-profit organizations for the management of their projects and

programmes. Learning PMC is important for submitting successful proposal and

solicitation of funding from donors worldwide. PMC seminar will equip the

participants with enhanced designing and management tools to tailor projects more

adequately to meet the needs of the beneficiaries.

This Green Scenery training on project Management Cycle will help you to:

Better understand NGO’s, UN agencies, and global Not-for Profit Organizations
Enhance quality requirements for project/ programme proposals.
Familiarise the participants with the use of Logical Frameworks and its

application in different phases of the project cycle.

Familiarise the participants with relevant terminology.
Improve participants monitoring and Evaluation skills.
Understand and prepare high-standard logical frameworks.
Identify and formulate projects through a participatory approach.
Improve the participant’s skill in writing sound project documents.
Improve the quality of the project documents.
Improve the design of projects and programmes and the quality of project.

THE PROJECT CYCLE

The way in which projects are planned and carried out follows a sequence beginning with an agreed strategy, which leads to an idea for a specific action, which then is formulated,implemented,and evaluated with a view to improving the strategy and further action. The project cycle helps us to understand how to organize our work so that it is based on real needs, well planned, monitored and evaluated, and allows us to learn from every phase of the project to improve our future work.

There are two main reasons for us to follow each stage of the project cycle while managing our work:

Firstly, we must try and acknowledge that change is the only constant aspect of our work. Things are changing all the time whether it is needs,clients,organizations,technology,finance ect.

Secondly, we must aim to be learning organizations building in structures and systems to help us to learn from the successes and challenges of our work and that of others. It is very tempting in our busy work lives to implement projects without taking the time to reflect on what we have learned and this will result to repeating our mistakes and failing to make the most of opportunities.

Fig 1 THE PROJECT CYCLE

THE SIX PHASES OF PROJECT CYCLE

Phase 1

Project Identification

The identification phase essentially involve project initiation. It is the phase within which the problem is identified, the solution agreed and a project team appointed. It requires that there is a demand for the out puts and the availability of resources to produce them.

Project identification takes a Logical Frame work Approach (LFA):

a)Stake holders Analysis

b)Problem Analysis

c)Objectives analysis

d)Strategy and Logical Frame work Analysis

Stake holders Analysis

Individuals,Groups,institutions or organizations that benefit from or may be involved into a project are stake holders. In order to maximize the benefits and minimize negative impacts, stake holders analysis identify all groups likely to be affected by the intervention. However, it is important to know not only the interest and attitude of these stakeholders in a possible intervention, but also the potentials of these stakeholders to contribute to the intervention

Stakeholders include:

•USER GROUPS – people who use the resources or services in an area

•INTEREST GROUPS – people who have an interest in, an opinion about, or who can affect the use of, a resource or service

•BENEFICIARIES of the project

•DECISION-MAKERS in communities

•THOSE OFTEN EXCLUDED from the decision-making process.

Methodology

•Identify all parts in community (Women,disabled,youthsethnic group…..)

•Study some groups in depth

•Establish Group priorities and contributions to project

Stakeholders can be classified as:

PRIMARY STAKEHOLDERS :Those who benefit from, or are adversely affected by, an activity .They are

the reason why a project is carried out – the end users.

SECONDARY STAKEHOLDERS include all people and institutions with an interest in

the resources or area being considered.

Reasons for making a stakeholder analysis is to:

•improve the project’s understanding of the needs of those affected by a problem

•identify potential winners and losers as a result of the project

• reduce, or hopefully remove, potential negative project impacts

•identify those who have the rights, interests, resources, skills and abilities to take part in, or influence the course of, the project

• identify who should be encouraged to take part in the project planning and implementation

• identify useful alliances which can be built upon

• identify and reduce risks which might involve identifying possible conflicts of interest among stakeholders.

How to make a stakeholder analysis?

List all the possible stakeholders in the project. (primary stakeholders

and secondary)

Interests of each stakeholder in relation to the project and its objectives.

Impact of the project on each stakeholder’s interests.

+ Potential positive impact on interest

– Potential negative impact

+/– Possible positive - negative

? Uncertain

priority that the project should give to each stakeholder

in meeting their interests.

( scale 1 to 5, 1 highest priority)

Reasons for making a stakeholder analysis?

•IMPROVED EFFECTIVENESS Participation increases the sense of ownership of the project by beneficiaries, which increases the likelihood of project objectives being achieved (appropriation).

• ENHANCED RESPONSIVENESS If people participate at the planning stage, the project is more likely to target effort and inputs at perceived needs.

• IMPROVED EFFICIENCY If local knowledge and skills are drawn on, the project is more likely to be good quality, stay within budget and finish on time.

•IMPROVED SUSTAINABILITY AND SUSTAINABLE IMPACT More people are committed to carrying on the activity after outside support has stopped.

• EMPOWERMENT AND INCREASED SELF-RELIANCE Active participation helps to develop skills and confidence amongst beneficiaries.

• IMPROVED TRANSPARENCY AND ACCOUNTABILITY, because stakeholders are given information and decision-making power.

• IMPROVED EQUITY if the needs, interests and abilities of all stakeholders are taken into account.

Activity 1 Stakeholders Analysis

Group Work

Group A Group B

Group C

Problem Analysis

Problem analysis helps primary stakeholders to identify the causes and effects of the problems they face. It involves drawing a problem tree, ( a scheme of a negative reality to be changed) from which project objectives can be identified through a cause - effect analysis

How to do a problem analysis

Find all the problems related with the analyzed area.
Identify the focal problem. Choose the main problems and establish the rest as a cause or effect of these ones.
Develop a problem tree. All problems must be organized around the focal problem. All causes must be beneath as roots and effects above as branches

Problem Tree

Activity 2 Develop a Problem Tree

Group Work ( A,B and C)

Objective analysis

•The objective analysis transforms the problem tree into an objective tree, where objectives to be achieve are interconnected according to a relationship mean- ends.

•The objective tree is a picture of the positive future reality that we want to achieve with the project.

“Negative "situations” become in “positive future conditions” or grades to be achieved

OBJECTIVES ANALYSIS

Analysis of Objectives is necessary to:

Describe the situation which shall be re established
Verify the hierarchy of objectives
Illustrate the means ends relationship in a diagram

The negative situations of the problem tree are converted into solutions, expressed as positive achievements.

Activity 3 Develop an Objective tree

Group Work (A,B and C)

Activity 4 Develop a Logical Frame Work

Group Work (A,B and C)

PHASE 2

Project Design

A funding request is made describing the context, the needs and problem analysis, the expected results and impact as well as implementation and resources schedule.

Design: Involves all aspects of a project including:

•Indicators of the achievement of the objectives and results

•Means of verification ( evidences) of the indicators

•External factors that can affect the project

•Studies of viability (economic, social, environmental, etc.,)

•oganograms

•Budgets.

Factors Related with the Design of Projects

Localization of Actions
Time of implementation
Length of the project Vs Available Resources
Project Finance

PHASE 3

Project Implementation

The agreed resources are used to achieve the operation purpose and to support the achievement of the overall objectives

Activity 4

Group Work (A,B and C)

Prior to Implementation

Managing the Budget

Elements of Implementation

Leading & Managing

Organizing Work

Managing the Team

Phase 4

Project Monitoring

Project is assessed to enable adjustment to changing circumstances. Partners are responsible for the monitoring in the field. The monitoring can leads to the identification of a new operation

Activity 5

Group Work (A,B and C)

Levels of Monitoring

How to Monitor

Areas of monitoring

PHASE 5

Project Reviewing

The Quality Assurance Group (QAG) of any project is formulated to ensure commitment to strengthen quality assurance. A key activity of QAG is the

assessment of projects and programs to identify lessons for improving quality.

QAG.s approach to reviewing project quality has been to use rapid assessment

techniques. The continuing success of this approach is demonstrated through the

well-considered methodology and objective results and the lessons on project quality

that panel members gain.

Project Review Group - Terms of Reference
Role
1. The role of the Project Review Group is to:
a. Provide a forum for reviewing and making recommendations on key project issues;
b. Provide guidance in relation to overall project planning, intermediate objectives and priorities on behalf of the project sponsor and other stakeholders;
c. Provide strategic information and assistance to the Project Director in delivering the project;
d. Review progress; and
e. Where end user, sponsor, Infrastructure Division and National Operations Division or Departmental expectations deviate from that approved by the DISC within the DBC, particularly in relation to capability outcomes, provide a forum for recommending changes from the approved DBC to DGIAD (if the capability and/or budgetary impact is significant, DGIAD may elect to refer the matter to the DISC for direction).
2. In carrying out its role, the Project Review Group is to:
a. Meet as required, typically once per quarter, noting that meetings may be required more often during the early stages of a complex project;
b. Conduct meetings in accordance with a written agenda, and produce formal Minutes of Meeting which will be stored in accordance with Defence archive policy clearly recording key considerations and recommendations regarding the delivery of the project; and
c. Provide a forum for resolving conflicts/disagreements between Defence stakeholders and record decisions and recommendations in writing.
Key Project Issues
3. Key issues that the Project Review Group will often have to concern themselves with are matters related to:
a. Cost (does the Contract Price for all Contracts collectively align with the Approved Budget);
b. Scope of Works (is the full Scope of Works able to be delivered within the Approved Budget);
c. Quality (is the required Quality able to be delivered within the Approved Budget); and
d. Time (will elements of the Works be delivered on time).
Cost Management in relation to the Project
4. The Project Review Group must ensure that the Cost Plan for a Project adheres to the Approved Project Budget. The Cost Plan that is considered by the PRG will be developed by the PM/CA and will incorporate the Cost Plan(s) developed by the Design Consultant(s), Managing Contractor(s) and/or Independent Cost Planner(s) engaged on the Project. Cost Plan adherence is ensured through:
a. During Design - iterative checks of the design development drawings against Cost Plan elements. Under no circumstances should any element of the Cost Plan be allowed to exceed the Budget without savings elsewhere in the design. Changes to the Approved Scope of Works or Budget are not to occur without DGIAD's express authorisation.
b. During Delivery (Construction) - iterative checks of the Procurement of Works against Cost Plan elements. Under no circumstances should the procurement of any element of the Works proceed in excess of the Approved Budget without DGIAD's express authorisation to either:
(1) increase the Approved Project Budget; or
(2) reduce or otherwise alter the Scope of Works; in both circumstances ensuring that adequate provision is made for Contingency, other Consultant and/or Contractor fees etc. Consultation should be undertaken with the project sponsor where reductions or alterations to the Scope of Works have the potential to impact on Capability outcomes.
5. The Project Review Group must ensure that the Expenditure for a Project adheres to the Forecast (Phasings).
6. NPOC impacts of any changes to the Approved Project Scope also need to be taken into account
Standing Agenda Items
7. The following are required to be Standing Agenda Items for all Project Review Meetings:
a. Project Status including Project Approvals (Report to be presented by Director, Project Director or PM/CA);
b. Financial Management (performance against the Approved Project Budget including Variation management and Expenditure achievement against the Forecast and asset rollout action - note it may often be appropriate to only address particular aspects of this Agenda Item once Consultant(s) and Contractor(s) have left the room);
c. Time Management (performance against the Approved Project Program including Extension of Time management);
d. Quality Management (conformance of the Works with the Specification and performance against the relevant Quality Assurance system(s));
e. National Code of Practice for the Construction Industry - performance against the requirements of the National Code and Implementation Guidelines;
f. Occupational Health and Safety - including performance against the requirements of the Federal Occupational Health and Safety Commissioner;
g. Consultant Management (performance of Consultant(s) - note it will often be appropriate to require the Consultant(s) and Contractor(s) to leave the room for this Agenda Item); and
h. Contractor Management (performance of Contractor(s) - note it will often be appropriate to require the Consultant(s) and Contractor(s) to leave the room for this Agenda Item).
8. For projects which have been the subject of Public Works Committee enquiries, the following additional standing agenda will apply:
a. Progress on recommendations made by the PWC;
b. Significant proposed changes to approved scope and budget.