Ring 1

Financing is where things comes together. Unfortunately it is also still often the domain of input control. Financing mechanisms are often primarily designed to achieve internal accountability requirements. While this is important, financing mechanisms should also serve program achievement. Program objectives and financing mechanisms need to be in line.

Points:

• Budgets and financial reports should make it possible to link expenditures with outcomes. If not, it is not possible to achieve cost effectiveness
• Flexibility is one of the largest and most useful challenges in budgeting.
• Budget efficiency is prime and can be facilitated.
• Consider financially supporting on-going processes that help achieve objectives. Avoid ‘projectization’

Tools:

• Output based budget systems
• Beyond budget systems
• Process budgeting
• Budget efficiency check