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 28/04/2020
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 28/04/2020
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.
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.
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. 28/04/2020