PC3 ORGANIZATIONAL AND Technical Capacity Assessment Tool – (POTCAT)

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ORGANIZATIONAL CAPACITY DEVELOPMENT

PC3 Organizational and Technical Capacity Assessment Tool

(POTCAT)

Part 2: Organizational Capacity Assessment


PC3 CAPACITYBUILDING

PC3 CapacityBuilding

The PC3 program is designed in such a way that it will give greater opportunity for mentor organizations and the CBOs to implement and manage their own activities. The role of Tier Is will be providing technical and financial support to Tier II or mentor organizations and these organizations are also expected to provide the same assistance to the CBOs known as Tier III who are actually implementing and sustaining the program. The major activities under the capacity development will be assessing the capacity of the mentor organizations and designing subsequent capacity development plans for further action.

The Operational Capacity assessment is divided into organizational and technical activities. This manual particularly deals with organizational aspect and looks into the decision making process, the human resource management and the financial aspect in detail. Before conducting the assessment, orientation workshop will be held with all tier IIs. During the workshop participants will be familiarized with the concept of capacity building, the objective of capacity building, the POTCAT tool as well as the process how to conduct the actual assessment. Finally individual organization will draft a plan or schedule how to introduce the tool and when to conduct, the participatory capacity assessment in their respective organization with their Tier I partners. After the actual assessment is conducted, the plan of action development will take place shortly that will address the capacity gap in the form of training, material support, coaching, experience sharing etc. Therefore this manual will be helpful in assessing the organizational need only but later when the actual implementation gains momentum the technical assessment will follow suit. This does not mean there will not be any kind of training or support before the assessment. Partners may implement capacity building activities based on field reports, partners request etc.

I. POTCAT Assessment Process

POTCAT includes an instrument that you can use to collect and summarize technical information and a guide for applying the instrument. The process is based on the assumption that the most effective way to initiate organizational change is to involve staff members and other key stakeholders in an open assessment and consensual planning.

It involves preparing for the assessment, conducting the assessment, and integrating the results into organizational activities. There are9 steps defined under the 3 phases.

Phase / Step
Preparing for the Assessment / Step 1: Plan the assessment
Step 2: Hold on initial meeting and develop a schedule
Step 3: Review the POTCAT instrument/tool
Conduct the Assessment / Step 4: Carry out the assessment and complete the assessment form
Step 5: Prepare a summary for each component
Step 6: Develop a unit level action plan
Integrating Results into organizational Activities / Step 7: Reach consensus on priority actions at a one-day workshop
Step 8: Develop an integrated action plan for the whole organization
Step 9: Link the action plan to annual operational planning, budgeting, and monitoring

II. Two groups participate in the POTCAT process

  1. Core team.

The core team plans and conducts the assessment, monitors its progress, leads the development of an organization with action plan to make improvements, and advocates for the institutionalization of the plan within the organization’s planning and monitoring systems. The team will also plan how to scale up the remarkable achievement of the organization so that other would implement in more effective and efficient manner. The core team should contain a cross-section of program and financial staff.

  1. Assessing Team

The assessment team would be the core team, the senior management and other staffs preferably form all levels. The different mix will have a greater contribution in providing balanced views and arrive at effective output also. The team comprise of not more that 15 staff, during discussion/assessment should base their comment on evidence available or experience shared in common. For easy reference list of reference document is attached to the manual.

III. General Directions How to Complete the POTCAT Assessment Forms

POTCAT is a participatory organizational and technical assessment whereby staffs are given the opportunity to self-reflect on the performance of their organization in general on 13 identified key issues. The assessing team should be composed of various staff across the organization and be given prior orientation by the core team before actual conduct the assessment.

During the assessment participants will be provided with the tool and based on his/her understanding of the criteria will rate the organization. With the help of external facilitator (Tier I), the assessing team will be requested to reach a consensus on each criteria during group discussion. There will be also a recorder from the organization to record the consensus and some of the important issues which needs further consideration.

IV. How POTCAT instrument is organized

POTCAT provides users with a rapid assessment tool to identify characteristics and capacity of an organization’s management and financial systems. The instrument consists of two types of forms.

1)The POTCAT assessment form with

  1. The 13 organizational and financial components
  2. Assessment criteria divided into 4 levels of organizational capacity
  3. Blank space for users response to each criteria
  4. Summary of the assessment where the group will write summary of the findings and the priorities for the capacity building

2)The action plan form for use by each unit and for an organization wide plan.

POTCAT provides a template for action plan, which can be used both at the end of each unit assessment and in a final workshop of stakeholders, to organize recommended activities across the whole organization. On the template, they can indicate a timeline, person(s) responsible, resources needed, and indicators of achievement for each activity they recommend undertaking.

Area / Proposed Activities / Timeline / Person(s)
Responsible / Resources Needed / Indicators of achievement
Internal / External
Component: 8. Financial Planning & Budgeting
Variance report and analysis / Develop protocol for expenditure review / 6 month / Accounting directory with Human resources director /
  • Staff time
  • Tier I technical asst.
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  • consultant time
  • half day workshop/training
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  • monthly expenditure report distributed
  • training held
  • protocol printed

Section B- The Checklists

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POTCAT Organizational Management Components:
1 / Governance & Leadership
2 / Strategic & Operational Planning
3 / Structure: Roles and Responsibilities
4 / Structure: Delegation of Authority and Decision making
5 / Staffing and Human Resource Management
6 / Partnering and Networking
7 / Adequacy of Physical Infrastructure
8 / Financial Planning and Budgeting
9 / Cash and Banking
10 / Accounting and Record Keeping
11 / Procurement
12 / Distribution, Stock and Inventory Management
13 / Management Information System

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PC3 ORGANIZATIONAL AND Technical Capacity Assessment Tool – (POTCAT)

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Governance & Leadership
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The organization is registeredup to date.
2 / The board and senior management have written roles and responsibilities.
3 / The organization operates according to the approved by-laws.
4 / The board and senior management meet regularly.
5 / The management communication structures are established and information sharing practices are in place.
6 / Problem solving and dispute management mechanisms are established.
2. Operational Planning
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / There are systematic proceduresfor involving stakeholders (including the community) in formulating organizational strategies.
2 / An annual work plan exists.
3 / The work plan establishes goals, activities, budgets, timeline and includes who is responsible for their execution.
4 / The management reviews the work plan bi-annually
5 / The annual work plan reflects priorities in a long-term, strategic plan.

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3. Structure: Roles and Responsibilities
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / Job descriptions exist for all positions and are updated as required.
2 / Staff has the required background, training and capabilities/expertise for the positions they hold.
3 / The organizational structure reflectsjob responsibility and level of authority.
4 / Delegation of staff respects the line of authority and follows the organizational structure.
4. Staffing and Human Resource Management
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / All required staff positions in the organization are filled.
2 / There are procedures for new staff induction.
3 / Personnel policies include job classification, staff development, benefits, compensation, hiring/promotion, grievances, sexual harassment and work hours.
4 / The organization has work place policies on HIV/AIDS, gender equity, child right protection.
5 / Systems are established for staff performance planning and review.
6 / Confidential HR systems are in place for employee data.
5. Partnering and Networking
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The organization updates & maintains a service delivery map.
2 / The organization regularly attends coordination/network meetings.
3 / The organization has referral practices.
4 / The network and partnership practices facilitate experience and information sharing among partners on HIV/AIDS and OVC issues.
6. Adequacy of Physical Infrastructure
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The organization has adequate officespace and equipment .
2 / Physical spaces are appropriate for planned activities.
3 / Staffs have adequate space, lighting, supplies, and equipment to properly perform their duties.
7. Financial Polices and Accounting Procedures
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / A clear policy and procedure manual for budgeting exists and is readily available for all staff.
2 / Responsibilities for budget preparation and budget approval are clearly defined.
3 / Expenditures are tracked by budget line item, and recorded as they occur.
4 / Actual revenue/expenditure is compared against budget, variances are properly followed up and corrective actions are implemented in a timely.
5 / Budgets are prepared in accordance with the strategic plan and decisions/ priorities are made accordingly.
6 / Budgets are integrated in the accounting system.
8. Cash and Banking
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The policy and procedure manual for cash control, banking and cash flow are available to all staff involved in finance. / Manual
2 / All funds and claims received are properly recorded and banked intact. / Cash receipt, deposit slip and the accounting system
3 / All payments are properly controlled, authorized and supported by full documentation. / Payment documents
4 / Bank balances are properly reconciled with bank statements, independently scrutinized and approved, and reconciling items are subsequently cleared. / Monthly bank reconciliation documents
5 / All checks are signed by two officials of appropriate authority after scrutiny of approved documentation. / Authorization letter, cheque stub and level of authorization
6 / Claims from advances are accurately compiled and analyzed so that reimbursement is received promptly.
9. Accounting and Record Keeping
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The chart of accounts’ structure is sufficiently detailed.
2 / All expenditure is authorized, controlled, balanced and accounted for.
3 / All expenditure is properly coded and allocated in accordance with an approved chart of accounts.
4 / A trial balance is extracted and balanced every month.
5 / Annual financial statements are issued, audited by external auditors and approved at the end of the fiscal year.
6 / The accounting system is computerized.
7 / All Staffs are on payroll records and salary amounts correspond to employees’ contract.
8 / Time sheets are used as the basis for charging salaries to different funding sources.
10. Administration and Logistics
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / All purchases and procurements are made in compliance with the purchasing and procurement procedure/ manual.
2 / The purchasing and procurement procedure/ manual covers critical areas of:
  • Roles and responsibilities
  • Review and approval
  • Code of conduct
  • Procurement planning
  • Monitoring and reporting

3 / There are clearly defined levels of authority for approving different values of purchases.
4 / A Good Receiving Note is completed by store keeper for all goods received.
5 / Procedures for procurements are periodically reviewed and modified as needed.
6 / Existing systems and practices ensure that all donor-funded purchases are acquired according to the terms specified by donor.
11. Stock, Inventory, and Fixed Assets Management
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / Policy and procedure exists for inventory of fixed assets.
2 / Fixed assets are recorded in a register for controlling of their status.
3 / Fixed assets are periodically inventoried and all missing items are followed up and documented.
4 / The organization has insurance coverage for all properties/assets.
Vehicle Management
5 / Logbooks are maintained for each vehicle.
6 / Inventory of vehicles is made annually.
12. Management Information System
No. / Checklist / Point / Not Relevant / Evidence of Response
0 / 1 / 2 / 3
No / In Part / Mostly / Yes
1 / The organization has a defined information sharing process.
2 / The annual report includes program reports and financial statements.
3 / Best practices and innovative activities are documented, reported and shared with stakeholders.
4 / The organization has a monitoring framework.

Summary Profile POTCAT Assessment

Name of Tier II Partner:
Date of Assessment:
Assessment Sheet Completed by:
Rating Scale
(1) / Beginning Steps (meeting up to 25% of agreed upon Checklist )
(2) / Showing Results (meeting up to 50% of Checklist )
(3) / Systematically Achieving Results (meeting up to 80% of Checklist )
(4) / Model System for Technical Exchange (meeting up to 100%)
A. Organizational Capacity
General Management / Points
1. Governance & Leadership / (0)(1)(2)(3)
2. Strategic & Operational Planning / (0)(1)(2)(3)
3.Structure: Roles and Responsibilities / (0)(1)(2)(3)
4.Structure: Delegation of Authority and Decision-Making / (0)(1)(2)(3)
5.Staffing and Human Resource Management / (0)(1)(2)(3)
6.Partnering and Networking / (0)(1)(2)(3)
7.Adequacy of Physical Infrastructure / (0)(1)(2)(3)
Finance
8.Financial Planning and Budgeting / (0)(1)(2)(3)
9.Cash and Banking / (0)(1)(2)(3)
10.Accounting and Record Keeping / (0)(1)(2)(3)
Logistics & Information
11. Procurement / (0)(1)(2)(3)
12. Distribution, Stock and Inventory Management / (0)(1)(2)(3)
13. Management Information System / (0)(1)(2)(3)
Consensus Priorities for Capacity Development Action Plan

Priority ComponentTarget Indicator of Improvement

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2

3

Organizational Documents as Evidence:

The assessment team writes the evidence that justifies its response. Most responses require actual evidence, which may include:

  1. Verification of documents and records, such as: annual and long-term plans; personnel records; job descriptions; organizational charts; financial reports; financial statements; and, bank statements
  2. Examination of system tools and manuals, such as registers, vouchers receipts book, purchase requests, inventory forms, policies and procedures manuals, and supporting forms
  3. Physical examination of facilities, such as store rooms, warehouses, and other facilities that maintain inventory.

Component / Criterion / Evidence Found
Governance & Leadership / Organizational chart / The organization no longer reflects the current organizational structure
Accounting and Record Keeping / Data entry / Accumulated vouchers are waiting on clerk’s desk for entry
Journal entry / A sample of journal entries contained codes which could not be interpreted
Purchasing and Procurement / Purchasing and procurement policies and procedure / All purchasing and procurement staff have a copy of updated, compiled purchasing and procurement procedures at their desk
Stock inventory and fixed asset / Storekeeping / Some stock records are out of date
  • Where actual evidence is not available, responses need to be substantiated by interviews with staff.

Examples of Evidence Documents for Organizational Assessment

Put numbers in chronological order

  1. By-law or constitution of the organization
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  1. Revised organizational chart
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  1. Profile of board members

  1. Minutes: board meetings, mgt meetings, department level meetings, general staff meetings, stakeholders meeting, general assembly meetings
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  1. Annual reports of recent years
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  1. Weekly, monthly and quarter reports

  1. Board selection Checklist
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  1. Certificate of registration
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  1. Project proposals

  1. Strategic plan
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  1. Various MOUs signed for projects
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  1. Job description

  1. Staff promotion and acting formats/policy
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  1. New staff orientation documents
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  1. Organization’s newsletter

  1. Beneficiary cost sharing procedure/ guideline
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  1. Need assessment document
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  1. Payroll payment document/ mechanism

  1. Staff performance evaluation format/policy/procedure
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  1. Staff personal files
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  1. Service sub-contracting format/working guideline

  1. Work place policy
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  1. Network membership documents/manuals
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  1. Referral mechanisms/guideline in place

  1. Internal auditing document/mechanisms
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  1. financial manual
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  1. Administrative manual

  1. Personnel manual
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  1. Purchase requisition form
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  1. Petty cash payment voucher

  1. Checque payment voucher
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  1. Cash/checque receipt voucher
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  1. Receipt voucher

  1. External audit report
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  1. Sample purchase document
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  1. Goods receiving note

  1. Issue note
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  1. Bank statement and reconciliation
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  1. Asset management manual

  1. Store requisition or issue voucher
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  1. Inventory record
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  1. Stock card

  1. Bin card

Site Visit Summary

Current Operations (Yr)

Operating Expenditures

Number of Full Time Staff

Number of Project Sites

Range of Services/Interventions Offered

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A.Brief Description of the Challenge of the Organization

B.Findings of Team

CRecommendations

D.Degree of Consensus on the Assessment Tool Results

E.Target Indicators for Year 1-2 Capacity Development Action Plan

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