7.7.5 Capacity Gaps in Financial Management

Experience shows that new institutions are unlikely to have the ability to respond to UNDP financial and other reporting requirements from the outset. This is a predictable difficulty that must be addressed. The reporting and accounting processes and requirements of the UNDP are unique, as are the policies and practices surrounding project management and implementation. Project officers without UN experience may find it difficult. Bookkeepers and accountants, who are available locally, including those employed by the institution, are not always trained in the UN requirements and therefore will not be able to apply them. Financial officers without first-hand experience working with UNDP systems may also face difficulties. This is a reality on the ground, and any significant technical assistance project must recognise and deal with it at the outset.

Individuals with the responsibility in the institution for project management and implementation, as well as financial control and reporting, receive significant training on UN procedures and requirements. This would include integrating UN electronic reporting packages into institutional IT systems. Obviously, if there are other major funding partners with their own requirements, these needs should be taken into account in any training. One solution is to have the project team established at the pre-establishment phase (which includes UN staff) assume initial responsibility for ensuring that the project is implemented and that the necessary financial controls and reporting systems are in place. A critical requirement of the project team would be to transfer the knowledge and expertise they have about UN processes to NHRI staff. This can only be done if these individuals are hired in the pre-establishment phase and actively engage with their counterparts.