Capacity Building Workshop in Financial and HR
Description: Capacity Building Workshop in Financial and HR Management of CSOs Jagath Karunathilaka Consultant Financial and HR Management of CSO - SKPA Organizational Capacity Development Consultancy Project Objectives To create participants
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slide1. Capacity Building Workshop in Financial and HR Management of CSOs Jagath Karunathilaka
Consultant – Financial and HR Management of CSO - SKPA Organizational Capacity Development Consultancy Project<br>
slide2. Objectives To create participants’ interest and make them accountable in adoption of proper policies, systems, and tools already introduced
To discuss consequences on lapses that might be affected, accessing to GF and other donor funds etc.
To facilitate developing a work plan outlying the expected improvement over consultancy for capacity development with millstones
To discuss consultant’s intervention and its limitations in aspect of expected improvement for each CSO<br>
slide3. Target Participants: Executive Directors/CEO, Finance Managers and HR Managers of selected CSOs, enrolled for capacity development under SKPA program
We have selected 12 CSO who have taken part in virtual workshop.<br>
slide4. Scope Review on the expected outcome of the workshops, conducted from 25th August – 23rd October, 2021 through zoom
Module 1: Financial Manual: Introduction (1 Lesson Day)
Module 2: Finance Planning and Budgeting Process (2 Lesson Days)
Module 3: Basic Accounting System (4 Lesson Days)
Module 4: Financial Reporting Mechanism (5 Lesson Days)
Module 5: Procurement Procedure (4 Lesson Days)
Module 6: Finance Manager’s Roles and Responsibilities (1 Lesson Day)
Module 7: HR Management (10 Lesson Days)<br>
slide5. Scope… Importance in adoption of proper policies, systems and tools, and consequences on lapses that might be affected, accessing to GF and other donor funds – A panel discussion by officials of FPA to share their experience and get the feedback if any impediment
Devise a work plan outlying the expected improvement over consultancy for capacity development with millstones
Support expected from Consultant to Set Up, Revise or Realign present Financial and HR management policies, systems and tools for each CSO<br>
slide6. Expected Outcome Devise a work plan outlying the expected improvement over consultancy for each CSOs enrolled for capacity development with millstones<br>
slide7. Work Plan First round of information survey based on checklists - CSOs are supposed to assess their position and fill out their status on the consultant assisted checklists (through a two hours Zoom Meeting (August 6 from 9.30 – 11.00)
Consultant physically visits to 13 selected CSOs’ main office locations and examine their documents in order to revalidate the inputs and strengthen observations etc. Tentative scoping visit dates the preferred location/clusters (from August 9 -17)
Consultant carry out assessment and analysis under each CSOs based on their information collected through checklists and from physical visits (August 18 -22)
Overall workshop guides with detailed lesson plans - workshop Outlines (From August 10 – October 8)
CSOs’ Capacity Building Workshops - Finance and HR Management (from August 25 - October 23)<br>
slide9. Overall Management of CSO – Level of Sophistication Primitive – Budgeting Only
Figures compared with previous year
Basic – Annual Operating Planning
Action plan
Annual budget synchronize with action plan<br>
slide10. Overall Management of CSO – Level of Sophistication Mature - Strategic Planning
Loan –term direction (say10 years)
Vision; Mission; Values – guiding principles
Loan term plan (say 5 years)
Strategies; Goals; Plans – Program Management, Finance Management, HR Management, Procurement (Master Procurement Plan)
Short-term plan (say 1 - 2 years)
Objectives; Targets; Annual or Biennium budget synchronize with action plan<br>
slide11. Overall Management of CSO – Level of Sophistication Sophisticated - Strategic Management
Strategic Planning + Policies and Procedures (reviewed periodically for its relevance that support in meeting current needs and resulting in tangible outcomes)
Guidelines & Templates – Governance; Program Management; Communication; Fund raising / resource mobilization; Financial and HR management<br>
slide12. A mature system has the following characteristics Clarity of objectives
Objectives are stated clearly
They are shared with all
Extent to which it is well structured
Comprehensive and has all components
Scientifically designed with professional expertise behind
Extent to which it is understood
They are communicated to all
Periodic education/ training programs are conducted for the users
Manuals and guidelines are available How well it is implemented
Line managers take interest
HR monitors the same well
Extent to which it meets organizational needs
The system meets current needs and reviewed periodically for its relevance
Resulting in tangible outcomes<br>
slide13. Manual Report Structure – CSO Chapter Structure I:
Overview
Overall Policy
Policy Framework
Procedure
Illustration – Key Steps
Process Flowcharts
Business Case Analysis – where some chapters are strategic important
Template References – Operating Formats Chapter Structure II:
Chapter Introduction
Policy Guidelines
Template References – Operating Formats<br>
slide14. The Syllabus Module1: Financial Manual: Introduction- August 25, 2021
Nature of Finance and Functions of Finance Management of Non Profit
Overview and the Policy Framework
Implementation and Compliance – Introduction
Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations (NPOs) (including Non-Governmental Organizations - NGOs)
Framework for the Preparation and Presentation of Financial Statements -
Legal Framework and Definition of an NPO
Donations/Contributions, Grants and Donor Agreements
Restricted Funds, Unrestricted Funds and Accumulated Fund<br>
slide15. The Syllabus Module1: Financial Manual…
Nature of Finance and Functions of Finance Management of Non Profit
Overview and the Policy Framework
Implementation and Compliance – Introduction
Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations (NPOs) (including Non-Governmental Organizations - NGOs)
Framework for the Preparation and Presentation of Financial Statements -
Legal Framework and Definition of an NPO
Donations/Contributions, Grants and Donor Agreements
Restricted Funds, Unrestricted Funds and Accumulated Fund<br>
slide16. The Syllabus Module 2: Finance Planning and Budgeting Process (August 30 & 31, 2021)
Introduction: overview, policy framework and the planning process
Budgeting Framework
Budget Planning and Preparation Process
Biennium Budget Preparation Flowchart Processes of Sampled CSO
Spreadsheet – Budgeting Template
Cash Flow Projection Template
Sample Multi-Program Line Item Budget<br>
slide17. The Syllabus Module 2: Finance Planning and Budgeting Process…
Budget Implementation and Monitoring
Key Steps Checklist in Budgeting
Income and Expenditure Variance Analysis
Budget Revisions: Supplementary Budget
The roles and responsibilities for the planning and preparation of Budgets
Important Aspects for Creating Budgets at Nonprofit Organizations<br>
slide18. The Syllabus Module 3: Basic Accounting System
Accounting essentials to set up and operate a Double Entry Accounting System – September 6
Accounting Essentials to Set Up and Operate a Double Entry Accounting System – Accounting Theory; The Chart of Accounts; The Ledger Concept; Closing the Books; The Financial Statements; and Accounting Controls
Basic accounting system comprises a standard Chart of Accounts that comprise a CSO’s general ledger. The accounts may be labeled and would classify according to the standard chart of accounts, the list of categories may include Assets; Liabilities; Owners’ Equity or Accumulated fund; revenues; Operating Expense and other relevant accounts<br>
slide19. The Syllabus Module 3: Basic Accounting System
Processing a Formal Accounting System for Efficient Accounting and Finance Operations – September 7
Financial and Accounting Operations of a CSO
Fixed Assets and Depreciation
Intangible Assets
Revenue and Receivables
Cash Processing<br>
slide20. The Syllabus Module 3: Basic Accounting System
Processing a Formal Accounting System for Efficient Accounting and Finance Operations…
Payable Processing and Accrual
Inventory Accounting
Debt Accounting
Payroll Activities
Bank Transactions
Financial Recording and Closing Procedures<br>
slide21. The Syllabus Module 3: Basic Accounting System
Financial Recording and Closing Procedures and functional Competencies in Finance Management relevant to NPOs – September 8
Financial Ledger and Records
Project Accounting
Direct Costs and Indirect Support Costs
Trial Balance General Policies
Closing Activities
Period-end Reporting
Additional Requirements for Half-yearly and Annual Closing Activities including Physical verification
Document Retention and Destruction<br>
slide22. The Syllabus Module 3: Basic Accounting System
Financial Recording and Closing Procedures and functional Competencies in Finance Management relevant to NPOs – September 8
Financial Ledger and Records
Project Accounting
Direct Costs and Indirect Support Costs
Trial Balance General Policies
Closing Activities
Period-end Reporting
Additional Requirements for Half-yearly and Annual Closing Activities including Physical verification
Document Retention and Destruction<br>
slide23. The Syllabus Module 3: Basic Accounting System
Presentation of Financial Statements - special guideline issued to NPOs to prepare and present their financial statements (SLFRS Framework) – September 9
Underlying Assumptions
A complete set of Financial Statements includes:
Statement of Financial Position.
Statement of Financial Performance – the income and expenditure of all funds.
Statement of Changes in net assets/equity.
Cash Flow Statement.
Distribution and Publication of Financial Statements
Appointment of External Auditor<br>
slide24. The Syllabus Module 4: Financial Reporting Mechanism
Overview of Financial Reporting and Financial Reporting Framework for NPO including Audited Financials and Non Profit Annual Report – September 13
Financial Reporting Framework for NPO
Financial Reporting Cycles
Nonprofit Annual Report
How do you Analyze a Non Profit Financial Statement
Key Financial Metrics to Measure Nonprofit Health – Liquidity<br>
slide25. The Syllabus Module 4: Financial Reporting Mechanism
Conceptual Framework for Financial Reporting in terms of Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations and NGOs – September 14
How to Use this SL SoRP
Donations/Contributions, Grants
Donor Agreements (Requirements for Audited Financial Statements, a Variance Report, and Narrative Progress Report)
Restricted Funds
Unrestricted Funds<br>
slide26. The Syllabus Module 4: Financial Reporting Mechanism
Conceptual Framework for Financial Reporting in terms of Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations and NGOs…
Accumulated Fund
Users and their Information Needs
Qualitative Characteristics of Financial Statements (Understandability, Relevance, Reliability and Comparability).
True and Fair View
Underlying Assumptions includes Going Concern; Accrual Basis
Illustrative Financial Statements Structure for NPOs [including NGOs] based on SLFRSs
Application of Sri Lanka Accounting Standards for NPOs<br>
slide27. The Syllabus Module 4: Financial Reporting Mechanism
Financial Reporting Requirements in terms of SLFRS Framework– September 15
Sample Nonprofit Financial Statements
Sample Nonprofit Significant Accounting Policies
NPO Specific Provisions and Significant Accounting Policies Recommended for Not-for-Profit Organizations – September 16
NPO Specific Provision<br>
slide28. The Syllabus Module 4: Financial Reporting Mechanism
Analyze a Non Profit Financial Statement as to Evaluate Financial Conditions for a NPO – September 17
Nonprofit Financial Analysis Worksheet
Nonprofit Financial Ratio Analysis<br>
slide29. Module 5: Procurement Procedure
Overview and The Framework of Standard Procurement Process For CSOs & Procurement Preparatory Activities and Procurement Planning - September 21
The Stages in the Procurement Process Including Procurement Process Flow Chart
Flow Chart of Standard Procurement Procedures
Proposed Procurement Procedure for CSO – The Scope
Procurement Committees and their Functions
Procurement Preparatory Activities and Procurement Planning including Master Procurement Plan (MPP), Annual Procurement Plan (APP), Procurement Packaging and Slicing, Detailed Procurement Plan (DPP), Monitoring of Procurement Plan The Syllabus<br>
slide30. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure - September 22
Commonly used procurement methods
International Competitive Bidding (ICB)
Limited International Bidding (LIB)
National Competitive Bidding (NCB)
Limited National Bidding (LNB) The Syllabus<br>
slide31. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Shopping
National Shopping (NS)
International Shopping (IS)
Registration of Suppliers/Contractors
Use of Rainbow Pages
Force Account The Syllabus<br>
slide32. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Direct Contracting
Repeat Orders
Direct Contracting to Community Based Organizations
Emergency Procurement
Two stage Bidding Process
Two Envelop System
Pre-qualification The Syllabus<br>
slide33. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Financial Threshold Limits for Different PCC and Financial Authority under Direct Procurement
Invitation, Closing and Opening of Bids
Bid Evaluation
Award of Contract The Syllabus<br>
slide34. Module 5: Procurement Procedure
Special Procurements
Procurement of Commodities
Procurement of Spare Parts
Repairs and Maintenance
Repairs to Motor Vehicles and Equipment
Purchasing of Fuel
Information Systems
E-Procurement The Syllabus<br>
slide35. Module 5: Procurement Procedure
Contract Administration
Contract Administration Plan (CAP)
Performance Assessment Plan (PAP)
Surveillance Techniques
Monitoring Methods The Syllabus<br>
slide36. Module 5: Procurement Procedure
Stores (Inventory) Management
Stores (Inventory) Records
Handing over and Taking Over of Stores
Stock Controls
Stores Verification
Actions to be taken for the Disposable Items
Order of Write-Off and Surcharges on losses The Syllabus<br>
slide37. Module 5: Procurement Procedure
Selection and Recruitment of Individual Consultants and Firms - September 24
Type of Consulting Services
Appointment of Consultant Procurement Committees
Selection Methods and the Selection Process The Syllabus<br>
slide38. The Syllabus Consultant Selection Process
Preparation of TOR
Preparation of Cost estimate and the budget
Publication of EOI
Preparation of Long List
Preparation of the Short List
Preparation of RFP
Issuance of RFP to short listed Consultants
Receipt of technical and f financial proposals Evaluation of technical proposals
Public opening of financial proposal of the Consultancy
Determine the organizations which have achieved the minimum score specified in the RFP
Evaluation of financial proposals of such organizations
Final evaluation of quality and cost
Negotiations and award of the contract to the selected Consultancy organization
Award of Contract<br>
slide39. The Syllabus Consultancy Organizations:
Quality and Cost Based Selection (QCBS);
Quality Based Selection (QBS);
Selection under a Fixed Budget (FBS);
Least Cost Selection (LCS);
Selection Based on Consultant’s Qualifications (CQS);
Single Source Selection (SSS); and
Selection of particular types of Consultant Individual Consultants
Individual Consultants Single Source (ICS)
Individual Consultants Competitive (ICC) Consultant Selection Methods<br>
slide40. The Syllabus Module 6: Finance Manager’s Roles and Responsibilities – September 27, 2021
The Finance Manager is responsible for managing the financial activities, ensuring legal and regulatory compliance of the financial functions…
Sample JD template with area of key responsibilities, key qualification, knowledge and skills, attitudes with all other information.
Get the information for following questions to develop a sampled JD for Finance Manager position of CSO
Developing a Position Description for Finance Manager of CSO<br>
slide41. The Syllabus Module 7: HR Management
Business Code Practice, Compliance and Data Security (October4)
Human Resource Management – Overview
Business Code Practice & Compliance
Organizational chart clearly delineating basic job roles
Conflict of interest, organizational communication like open door policy, rumors and blackmailers, issuing employee details, service letters and salary particulars, access to personnel files, mass media communication, communication channels, confidential information,
Dress code, attendance and punctuality, use of organizational property<br>
slide42. The Syllabus Module 7: HR Management
Data security or Privacy policy
Protection of confidential information and trade secrets
Code of conduct and organizational ethics
Employment Practices
Human rights and equal opportunities, prohibition of harassment, prohibition of forced or child labor,
Provision of occupational health and safety environment,
Disclosure of employee personal information
General formalities like pre-employment formalities and commencement of employment and induction<br>
slide43. The Syllabus Module 7: HR Management
Recruitment, Selection and Induction (October 5)
Recruitment and Selection
Overview, policy framework and procedures on recruitment
Manpower planning, recruitment planning, vacancy awareness and advertising,
Candidate screening, interview and assessment process, recruitment finalization,
Post recruitment process, and recruitment of project staff.<br>
slide44. The Syllabus Module 7: HR Management
Recruitment, Selection and Induction…
Induction and Integration Program
Pre induction, induction and post induction phases of new recruits
New leader assimilation program – guideline
Induction program content and checklists<br>
slide45. The Syllabus Module 7: HR Management
General Terms and Conditions of Employment (October 6)
Working hours and attendance: time attendance and attendance recording systems
Leave entitlement: various leave provision include annual/ vacation leave, casual leave, medical leave, maternity leave
General provision for: duty leave, short leave, half day leave, unauthorized leave, lieu –leave, day-off, leave to attend courts, leave to vote at elections, duty leave for official purpose, duty leave to attend training, leave without pay, and special leave for communicable/ infectious diseases and absence from work due to accidents while on duty<br>
slide46. The Syllabus Module 7: HR Management
General Terms and Conditions of Employment…
Procedure for application of leave and employee responsibility of using the privilege of leave
Declaration of weekly holidays, procedure to engage for work outside the normal working hours – engage in overtime
Procedure for assessment and confirmation of employees who are under period of probation.<br>
slide47. The Syllabus Module 7: HR Management
Rewards and Recognition (October 7)
Remuneration structure include base salary and other allowances, pay increase, overtime rates etc.
Payment of salaries and overtime, pay administration and pay records including EPF/ETF
Other fringe benefits like bonus, attendance incentives, leave encashment, salary advance, festival advance, and medical benefits etc.
Employee well-being practices like annual trip, family gathering events
HR practices on non – remuneration recognition like commendation, appreciation, staff retreat etc.<br>
slide48. The Syllabus Module 7: HR Management
Performance Review, Training & Learning Practices (October 11)
Performance Planning, Monitoring and Review
Performance management system includes formal process of planning, monitoring and reviewing
Performance appraisal and review mechanism: setting performance standards and targets under pre-defined performance criteria (KRAs /KPIs), conduct formal bi-annual review and annual appraisal
Appraisal process: conducting appraisal interviews – one to one, one to may or 360 degree feedback analysis
Framework of competency: competency mapping, competency analysis competency feedback assessment, potential assessment for feeder job position
Behavioral, trait and result-oriented performance appraisals<br>
slide49. The Syllabus Module 7: HR Management
Performance Review, Training & Learning Practices …
Training, Development and Learning Practices
Training Planning: Training Need Analysis (TNA): capturing individual training needs as well as departmental or functional training needs that requires addressing competency gaps
Preparation of annual training plan, training calendar and the training budget,
Organizing and conducting training programs: Training program planning, preparation of a session plan, selecting appropriate training methodology, build internal and external resource fleet, coordinating and administering a training program and conduct training evaluation
Training for the skills needed for future development – professional skills and leadership development etc.
Various sources of learning: departmental meeting, performance review discussion, internet etc.<br>
slide50. The Syllabus Superannuation: providing terminal benefits within the legal provision
Employees’ Provident Fund
Employees’ Trust Fund
Payment Of Gratuity Or Pension Severances practices
Retirement
Volunteer resignation
Vacation of employment
Medical condemnation
Dismissal on disciplinary grounds
Expiration of the contract period
Redundancy of the service contract
Conduct exist interviews
Terminal dues and benefits and clearance on severance Module 7: HR Management
Superannuation and Severance (October 12)<br>
slide51. The Syllabus Conflict and Grievance Management (October 13)
Process of the conflict resolution in an organization
Grievance redressel system: a formal process to settle employee grievances (addresses including violation of the terms of employment, the law, organization regulations, and worker’ rights or accepted past practices etc.)
Key components of grievance mechanism:
Raised with the immediate supervisor - conciliation
Internal review hearing stages
Arbitration hearing
Dismissal of complaint
Withdrawal of grievances
Responsibilities of the officer handling grievances etc.
Records on grievances received, responded, resolved, withdrawal and dismissal, and appeal process etc.<br>
slide52. The Syllabus Disciplinary Management (October 14)
Disciplinary Procedure
Obligation of an employee
Lists of some acts of grave misconduct and some acts of minor misconduct
Minor offences committed for the first time
Disciplinary actions against probationers, temporary, contract and casual employees
Termination on vacation of post
Termination of service on general inefficiency<br>
slide53. The Syllabus Disciplinary Management …
Disciplinary orders in special circumstances
Criminal offences and bribery
Any employee charged / indicted by a Criminal Court
Order of disciplinary authority including punishments and appeal process<br>
slide54. The Syllabus Forms of Disciplinary Actions through a Formal Process
Forms of disciplinary actions including key steps of domestic inquiry procedure
Preliminary investigation, issuing a show cause notice on a prima facie case
Interdiction and compulsory leave
Framing /issuing a charge sheet on misconduct, charges on warrant dismissal and suspension, formal inquiry proceeding, action on grave misconduct
Formal inquiry proceedings (appointment of prosecuting officer and inquiry officer, defence representative
Order of disciplinary authority including punishments and appeal process<br>
slide55. The Syllabus The Employee Law and Employee Rights (October 21)
Employment Laws:
Legal Framework in Sri Lankan Context of Labor Laws
Overview of labor laws and regulations connected to HRM: Law relating to the employment and termination from employment Please see Annex I: legal framework in Sri Lankan context of labor laws<br>
slide56. The Syllabus The Employee Law and Employee Rights…
Employee Rights:
How Employee Seek Relief from Labor Tribunal (LT), Human Right Commission (HRC) and Government Ombudsmen
Provision available under the Industrial Disputes Act for employees to seek relief from Labour Tribunals in relation to Termination of Employment and the possible relief garneted by LT including reinstatement of workmen subject to an appeal firstly to the High Courts and thereafter even to the Supreme<br>
slide57. The Syllabus The Employee Law and Employee Rights…
Health and Safety Regulations
Occupational Health and Safety Administration (OSHA) regulations, including their relationship to HRM Occupational safety & health conditions mandatory provisions is available under the Shop and Office Employees Act
Equal Employment Opportunity Regulations and Fair Labor Standards
Explanations of the various type of discriminations faced by female employees due to their gender gap and fair labor standards and the provisions available them to treat with equality<br>
slide58. The Syllabus Current Issues & Trends in HRM (October 22)
Work Place Diversity
Ability and disability diversity in the workplace
Age diversity in the workplace: different types of ages within a business environment and how adjust to an aging population in various ways
Gender diversity in the workplace: gender diversity deals with equal representation of men and women in the workplace
Cultural diversity in the workplace: cultural diversity is a form of appreciating the differences in individuals. The differences can be based on gender, age, sex, ethnicity, sexual orientation, and social status. Organizations have realized the value in acquiring a diverse workforce.
Workplace violence: violence in the workplace and steps that HR can take to reduce it<br>
slide59. The Syllabus Current Issues & Trends in HRM…
Alternative Work Arrangements: HR Challenges in Managing Global Pandemic
Pros and cons of alternative work arrangement: home office, virtual teams and telecommunicating : virtual team, flexibility, drawbacks
HR challenges in managing global pandemic: study the element of a global pandemic situation with analysis of its course and effect and define strategies to overcome HR challenges<br>
slide60. The Syllabus Current Issues & Trends in HRM…
Human Resource Information Systems
Human resource information systems: costs and benefits to employee, HR and organizations– how heading to a 'paperless' office, the amount of information handled by HR professionals seems to keep growing<br>
slide61. Discussion!
Support expected from Consultant to Set Up, Revise or Realign present Financial and HR management policies, systems and tools for each CSO<br>
slide62. Thank You<br>
Consultant – Financial and HR Management of CSO - SKPA Organizational Capacity Development Consultancy Project<br>
slide2. Objectives To create participants’ interest and make them accountable in adoption of proper policies, systems, and tools already introduced
To discuss consequences on lapses that might be affected, accessing to GF and other donor funds etc.
To facilitate developing a work plan outlying the expected improvement over consultancy for capacity development with millstones
To discuss consultant’s intervention and its limitations in aspect of expected improvement for each CSO<br>
slide3. Target Participants: Executive Directors/CEO, Finance Managers and HR Managers of selected CSOs, enrolled for capacity development under SKPA program
We have selected 12 CSO who have taken part in virtual workshop.<br>
slide4. Scope Review on the expected outcome of the workshops, conducted from 25th August – 23rd October, 2021 through zoom
Module 1: Financial Manual: Introduction (1 Lesson Day)
Module 2: Finance Planning and Budgeting Process (2 Lesson Days)
Module 3: Basic Accounting System (4 Lesson Days)
Module 4: Financial Reporting Mechanism (5 Lesson Days)
Module 5: Procurement Procedure (4 Lesson Days)
Module 6: Finance Manager’s Roles and Responsibilities (1 Lesson Day)
Module 7: HR Management (10 Lesson Days)<br>
slide5. Scope… Importance in adoption of proper policies, systems and tools, and consequences on lapses that might be affected, accessing to GF and other donor funds – A panel discussion by officials of FPA to share their experience and get the feedback if any impediment
Devise a work plan outlying the expected improvement over consultancy for capacity development with millstones
Support expected from Consultant to Set Up, Revise or Realign present Financial and HR management policies, systems and tools for each CSO<br>
slide6. Expected Outcome Devise a work plan outlying the expected improvement over consultancy for each CSOs enrolled for capacity development with millstones<br>
slide7. Work Plan First round of information survey based on checklists - CSOs are supposed to assess their position and fill out their status on the consultant assisted checklists (through a two hours Zoom Meeting (August 6 from 9.30 – 11.00)
Consultant physically visits to 13 selected CSOs’ main office locations and examine their documents in order to revalidate the inputs and strengthen observations etc. Tentative scoping visit dates the preferred location/clusters (from August 9 -17)
Consultant carry out assessment and analysis under each CSOs based on their information collected through checklists and from physical visits (August 18 -22)
Overall workshop guides with detailed lesson plans - workshop Outlines (From August 10 – October 8)
CSOs’ Capacity Building Workshops - Finance and HR Management (from August 25 - October 23)<br>
slide9. Overall Management of CSO – Level of Sophistication Primitive – Budgeting Only
Figures compared with previous year
Basic – Annual Operating Planning
Action plan
Annual budget synchronize with action plan<br>
slide10. Overall Management of CSO – Level of Sophistication Mature - Strategic Planning
Loan –term direction (say10 years)
Vision; Mission; Values – guiding principles
Loan term plan (say 5 years)
Strategies; Goals; Plans – Program Management, Finance Management, HR Management, Procurement (Master Procurement Plan)
Short-term plan (say 1 - 2 years)
Objectives; Targets; Annual or Biennium budget synchronize with action plan<br>
slide11. Overall Management of CSO – Level of Sophistication Sophisticated - Strategic Management
Strategic Planning + Policies and Procedures (reviewed periodically for its relevance that support in meeting current needs and resulting in tangible outcomes)
Guidelines & Templates – Governance; Program Management; Communication; Fund raising / resource mobilization; Financial and HR management<br>
slide12. A mature system has the following characteristics Clarity of objectives
Objectives are stated clearly
They are shared with all
Extent to which it is well structured
Comprehensive and has all components
Scientifically designed with professional expertise behind
Extent to which it is understood
They are communicated to all
Periodic education/ training programs are conducted for the users
Manuals and guidelines are available How well it is implemented
Line managers take interest
HR monitors the same well
Extent to which it meets organizational needs
The system meets current needs and reviewed periodically for its relevance
Resulting in tangible outcomes<br>
slide13. Manual Report Structure – CSO Chapter Structure I:
Overview
Overall Policy
Policy Framework
Procedure
Illustration – Key Steps
Process Flowcharts
Business Case Analysis – where some chapters are strategic important
Template References – Operating Formats Chapter Structure II:
Chapter Introduction
Policy Guidelines
Template References – Operating Formats<br>
slide14. The Syllabus Module1: Financial Manual: Introduction- August 25, 2021
Nature of Finance and Functions of Finance Management of Non Profit
Overview and the Policy Framework
Implementation and Compliance – Introduction
Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations (NPOs) (including Non-Governmental Organizations - NGOs)
Framework for the Preparation and Presentation of Financial Statements -
Legal Framework and Definition of an NPO
Donations/Contributions, Grants and Donor Agreements
Restricted Funds, Unrestricted Funds and Accumulated Fund<br>
slide15. The Syllabus Module1: Financial Manual…
Nature of Finance and Functions of Finance Management of Non Profit
Overview and the Policy Framework
Implementation and Compliance – Introduction
Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations (NPOs) (including Non-Governmental Organizations - NGOs)
Framework for the Preparation and Presentation of Financial Statements -
Legal Framework and Definition of an NPO
Donations/Contributions, Grants and Donor Agreements
Restricted Funds, Unrestricted Funds and Accumulated Fund<br>
slide16. The Syllabus Module 2: Finance Planning and Budgeting Process (August 30 & 31, 2021)
Introduction: overview, policy framework and the planning process
Budgeting Framework
Budget Planning and Preparation Process
Biennium Budget Preparation Flowchart Processes of Sampled CSO
Spreadsheet – Budgeting Template
Cash Flow Projection Template
Sample Multi-Program Line Item Budget<br>
slide17. The Syllabus Module 2: Finance Planning and Budgeting Process…
Budget Implementation and Monitoring
Key Steps Checklist in Budgeting
Income and Expenditure Variance Analysis
Budget Revisions: Supplementary Budget
The roles and responsibilities for the planning and preparation of Budgets
Important Aspects for Creating Budgets at Nonprofit Organizations<br>
slide18. The Syllabus Module 3: Basic Accounting System
Accounting essentials to set up and operate a Double Entry Accounting System – September 6
Accounting Essentials to Set Up and Operate a Double Entry Accounting System – Accounting Theory; The Chart of Accounts; The Ledger Concept; Closing the Books; The Financial Statements; and Accounting Controls
Basic accounting system comprises a standard Chart of Accounts that comprise a CSO’s general ledger. The accounts may be labeled and would classify according to the standard chart of accounts, the list of categories may include Assets; Liabilities; Owners’ Equity or Accumulated fund; revenues; Operating Expense and other relevant accounts<br>
slide19. The Syllabus Module 3: Basic Accounting System
Processing a Formal Accounting System for Efficient Accounting and Finance Operations – September 7
Financial and Accounting Operations of a CSO
Fixed Assets and Depreciation
Intangible Assets
Revenue and Receivables
Cash Processing<br>
slide20. The Syllabus Module 3: Basic Accounting System
Processing a Formal Accounting System for Efficient Accounting and Finance Operations…
Payable Processing and Accrual
Inventory Accounting
Debt Accounting
Payroll Activities
Bank Transactions
Financial Recording and Closing Procedures<br>
slide21. The Syllabus Module 3: Basic Accounting System
Financial Recording and Closing Procedures and functional Competencies in Finance Management relevant to NPOs – September 8
Financial Ledger and Records
Project Accounting
Direct Costs and Indirect Support Costs
Trial Balance General Policies
Closing Activities
Period-end Reporting
Additional Requirements for Half-yearly and Annual Closing Activities including Physical verification
Document Retention and Destruction<br>
slide22. The Syllabus Module 3: Basic Accounting System
Financial Recording and Closing Procedures and functional Competencies in Finance Management relevant to NPOs – September 8
Financial Ledger and Records
Project Accounting
Direct Costs and Indirect Support Costs
Trial Balance General Policies
Closing Activities
Period-end Reporting
Additional Requirements for Half-yearly and Annual Closing Activities including Physical verification
Document Retention and Destruction<br>
slide23. The Syllabus Module 3: Basic Accounting System
Presentation of Financial Statements - special guideline issued to NPOs to prepare and present their financial statements (SLFRS Framework) – September 9
Underlying Assumptions
A complete set of Financial Statements includes:
Statement of Financial Position.
Statement of Financial Performance – the income and expenditure of all funds.
Statement of Changes in net assets/equity.
Cash Flow Statement.
Distribution and Publication of Financial Statements
Appointment of External Auditor<br>
slide24. The Syllabus Module 4: Financial Reporting Mechanism
Overview of Financial Reporting and Financial Reporting Framework for NPO including Audited Financials and Non Profit Annual Report – September 13
Financial Reporting Framework for NPO
Financial Reporting Cycles
Nonprofit Annual Report
How do you Analyze a Non Profit Financial Statement
Key Financial Metrics to Measure Nonprofit Health – Liquidity<br>
slide25. The Syllabus Module 4: Financial Reporting Mechanism
Conceptual Framework for Financial Reporting in terms of Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations and NGOs – September 14
How to Use this SL SoRP
Donations/Contributions, Grants
Donor Agreements (Requirements for Audited Financial Statements, a Variance Report, and Narrative Progress Report)
Restricted Funds
Unrestricted Funds<br>
slide26. The Syllabus Module 4: Financial Reporting Mechanism
Conceptual Framework for Financial Reporting in terms of Sri Lanka Statement of Recommended Practice for Not-for-Profit Organizations and NGOs…
Accumulated Fund
Users and their Information Needs
Qualitative Characteristics of Financial Statements (Understandability, Relevance, Reliability and Comparability).
True and Fair View
Underlying Assumptions includes Going Concern; Accrual Basis
Illustrative Financial Statements Structure for NPOs [including NGOs] based on SLFRSs
Application of Sri Lanka Accounting Standards for NPOs<br>
slide27. The Syllabus Module 4: Financial Reporting Mechanism
Financial Reporting Requirements in terms of SLFRS Framework– September 15
Sample Nonprofit Financial Statements
Sample Nonprofit Significant Accounting Policies
NPO Specific Provisions and Significant Accounting Policies Recommended for Not-for-Profit Organizations – September 16
NPO Specific Provision<br>
slide28. The Syllabus Module 4: Financial Reporting Mechanism
Analyze a Non Profit Financial Statement as to Evaluate Financial Conditions for a NPO – September 17
Nonprofit Financial Analysis Worksheet
Nonprofit Financial Ratio Analysis<br>
slide29. Module 5: Procurement Procedure
Overview and The Framework of Standard Procurement Process For CSOs & Procurement Preparatory Activities and Procurement Planning - September 21
The Stages in the Procurement Process Including Procurement Process Flow Chart
Flow Chart of Standard Procurement Procedures
Proposed Procurement Procedure for CSO – The Scope
Procurement Committees and their Functions
Procurement Preparatory Activities and Procurement Planning including Master Procurement Plan (MPP), Annual Procurement Plan (APP), Procurement Packaging and Slicing, Detailed Procurement Plan (DPP), Monitoring of Procurement Plan The Syllabus<br>
slide30. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure - September 22
Commonly used procurement methods
International Competitive Bidding (ICB)
Limited International Bidding (LIB)
National Competitive Bidding (NCB)
Limited National Bidding (LNB) The Syllabus<br>
slide31. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Shopping
National Shopping (NS)
International Shopping (IS)
Registration of Suppliers/Contractors
Use of Rainbow Pages
Force Account The Syllabus<br>
slide32. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Direct Contracting
Repeat Orders
Direct Contracting to Community Based Organizations
Emergency Procurement
Two stage Bidding Process
Two Envelop System
Pre-qualification The Syllabus<br>
slide33. Module 5: Procurement Procedure
Commonly used procurement methods and financial delegation under direct procurement & Preparation of biding documents and bidding procedure…
Financial Threshold Limits for Different PCC and Financial Authority under Direct Procurement
Invitation, Closing and Opening of Bids
Bid Evaluation
Award of Contract The Syllabus<br>
slide34. Module 5: Procurement Procedure
Special Procurements
Procurement of Commodities
Procurement of Spare Parts
Repairs and Maintenance
Repairs to Motor Vehicles and Equipment
Purchasing of Fuel
Information Systems
E-Procurement The Syllabus<br>
slide35. Module 5: Procurement Procedure
Contract Administration
Contract Administration Plan (CAP)
Performance Assessment Plan (PAP)
Surveillance Techniques
Monitoring Methods The Syllabus<br>
slide36. Module 5: Procurement Procedure
Stores (Inventory) Management
Stores (Inventory) Records
Handing over and Taking Over of Stores
Stock Controls
Stores Verification
Actions to be taken for the Disposable Items
Order of Write-Off and Surcharges on losses The Syllabus<br>
slide37. Module 5: Procurement Procedure
Selection and Recruitment of Individual Consultants and Firms - September 24
Type of Consulting Services
Appointment of Consultant Procurement Committees
Selection Methods and the Selection Process The Syllabus<br>
slide38. The Syllabus Consultant Selection Process
Preparation of TOR
Preparation of Cost estimate and the budget
Publication of EOI
Preparation of Long List
Preparation of the Short List
Preparation of RFP
Issuance of RFP to short listed Consultants
Receipt of technical and f financial proposals Evaluation of technical proposals
Public opening of financial proposal of the Consultancy
Determine the organizations which have achieved the minimum score specified in the RFP
Evaluation of financial proposals of such organizations
Final evaluation of quality and cost
Negotiations and award of the contract to the selected Consultancy organization
Award of Contract<br>
slide39. The Syllabus Consultancy Organizations:
Quality and Cost Based Selection (QCBS);
Quality Based Selection (QBS);
Selection under a Fixed Budget (FBS);
Least Cost Selection (LCS);
Selection Based on Consultant’s Qualifications (CQS);
Single Source Selection (SSS); and
Selection of particular types of Consultant Individual Consultants
Individual Consultants Single Source (ICS)
Individual Consultants Competitive (ICC) Consultant Selection Methods<br>
slide40. The Syllabus Module 6: Finance Manager’s Roles and Responsibilities – September 27, 2021
The Finance Manager is responsible for managing the financial activities, ensuring legal and regulatory compliance of the financial functions…
Sample JD template with area of key responsibilities, key qualification, knowledge and skills, attitudes with all other information.
Get the information for following questions to develop a sampled JD for Finance Manager position of CSO
Developing a Position Description for Finance Manager of CSO<br>
slide41. The Syllabus Module 7: HR Management
Business Code Practice, Compliance and Data Security (October4)
Human Resource Management – Overview
Business Code Practice & Compliance
Organizational chart clearly delineating basic job roles
Conflict of interest, organizational communication like open door policy, rumors and blackmailers, issuing employee details, service letters and salary particulars, access to personnel files, mass media communication, communication channels, confidential information,
Dress code, attendance and punctuality, use of organizational property<br>
slide42. The Syllabus Module 7: HR Management
Data security or Privacy policy
Protection of confidential information and trade secrets
Code of conduct and organizational ethics
Employment Practices
Human rights and equal opportunities, prohibition of harassment, prohibition of forced or child labor,
Provision of occupational health and safety environment,
Disclosure of employee personal information
General formalities like pre-employment formalities and commencement of employment and induction<br>
slide43. The Syllabus Module 7: HR Management
Recruitment, Selection and Induction (October 5)
Recruitment and Selection
Overview, policy framework and procedures on recruitment
Manpower planning, recruitment planning, vacancy awareness and advertising,
Candidate screening, interview and assessment process, recruitment finalization,
Post recruitment process, and recruitment of project staff.<br>
slide44. The Syllabus Module 7: HR Management
Recruitment, Selection and Induction…
Induction and Integration Program
Pre induction, induction and post induction phases of new recruits
New leader assimilation program – guideline
Induction program content and checklists<br>
slide45. The Syllabus Module 7: HR Management
General Terms and Conditions of Employment (October 6)
Working hours and attendance: time attendance and attendance recording systems
Leave entitlement: various leave provision include annual/ vacation leave, casual leave, medical leave, maternity leave
General provision for: duty leave, short leave, half day leave, unauthorized leave, lieu –leave, day-off, leave to attend courts, leave to vote at elections, duty leave for official purpose, duty leave to attend training, leave without pay, and special leave for communicable/ infectious diseases and absence from work due to accidents while on duty<br>
slide46. The Syllabus Module 7: HR Management
General Terms and Conditions of Employment…
Procedure for application of leave and employee responsibility of using the privilege of leave
Declaration of weekly holidays, procedure to engage for work outside the normal working hours – engage in overtime
Procedure for assessment and confirmation of employees who are under period of probation.<br>
slide47. The Syllabus Module 7: HR Management
Rewards and Recognition (October 7)
Remuneration structure include base salary and other allowances, pay increase, overtime rates etc.
Payment of salaries and overtime, pay administration and pay records including EPF/ETF
Other fringe benefits like bonus, attendance incentives, leave encashment, salary advance, festival advance, and medical benefits etc.
Employee well-being practices like annual trip, family gathering events
HR practices on non – remuneration recognition like commendation, appreciation, staff retreat etc.<br>
slide48. The Syllabus Module 7: HR Management
Performance Review, Training & Learning Practices (October 11)
Performance Planning, Monitoring and Review
Performance management system includes formal process of planning, monitoring and reviewing
Performance appraisal and review mechanism: setting performance standards and targets under pre-defined performance criteria (KRAs /KPIs), conduct formal bi-annual review and annual appraisal
Appraisal process: conducting appraisal interviews – one to one, one to may or 360 degree feedback analysis
Framework of competency: competency mapping, competency analysis competency feedback assessment, potential assessment for feeder job position
Behavioral, trait and result-oriented performance appraisals<br>
slide49. The Syllabus Module 7: HR Management
Performance Review, Training & Learning Practices …
Training, Development and Learning Practices
Training Planning: Training Need Analysis (TNA): capturing individual training needs as well as departmental or functional training needs that requires addressing competency gaps
Preparation of annual training plan, training calendar and the training budget,
Organizing and conducting training programs: Training program planning, preparation of a session plan, selecting appropriate training methodology, build internal and external resource fleet, coordinating and administering a training program and conduct training evaluation
Training for the skills needed for future development – professional skills and leadership development etc.
Various sources of learning: departmental meeting, performance review discussion, internet etc.<br>
slide50. The Syllabus Superannuation: providing terminal benefits within the legal provision
Employees’ Provident Fund
Employees’ Trust Fund
Payment Of Gratuity Or Pension Severances practices
Retirement
Volunteer resignation
Vacation of employment
Medical condemnation
Dismissal on disciplinary grounds
Expiration of the contract period
Redundancy of the service contract
Conduct exist interviews
Terminal dues and benefits and clearance on severance Module 7: HR Management
Superannuation and Severance (October 12)<br>
slide51. The Syllabus Conflict and Grievance Management (October 13)
Process of the conflict resolution in an organization
Grievance redressel system: a formal process to settle employee grievances (addresses including violation of the terms of employment, the law, organization regulations, and worker’ rights or accepted past practices etc.)
Key components of grievance mechanism:
Raised with the immediate supervisor - conciliation
Internal review hearing stages
Arbitration hearing
Dismissal of complaint
Withdrawal of grievances
Responsibilities of the officer handling grievances etc.
Records on grievances received, responded, resolved, withdrawal and dismissal, and appeal process etc.<br>
slide52. The Syllabus Disciplinary Management (October 14)
Disciplinary Procedure
Obligation of an employee
Lists of some acts of grave misconduct and some acts of minor misconduct
Minor offences committed for the first time
Disciplinary actions against probationers, temporary, contract and casual employees
Termination on vacation of post
Termination of service on general inefficiency<br>
slide53. The Syllabus Disciplinary Management …
Disciplinary orders in special circumstances
Criminal offences and bribery
Any employee charged / indicted by a Criminal Court
Order of disciplinary authority including punishments and appeal process<br>
slide54. The Syllabus Forms of Disciplinary Actions through a Formal Process
Forms of disciplinary actions including key steps of domestic inquiry procedure
Preliminary investigation, issuing a show cause notice on a prima facie case
Interdiction and compulsory leave
Framing /issuing a charge sheet on misconduct, charges on warrant dismissal and suspension, formal inquiry proceeding, action on grave misconduct
Formal inquiry proceedings (appointment of prosecuting officer and inquiry officer, defence representative
Order of disciplinary authority including punishments and appeal process<br>
slide55. The Syllabus The Employee Law and Employee Rights (October 21)
Employment Laws:
Legal Framework in Sri Lankan Context of Labor Laws
Overview of labor laws and regulations connected to HRM: Law relating to the employment and termination from employment Please see Annex I: legal framework in Sri Lankan context of labor laws<br>
slide56. The Syllabus The Employee Law and Employee Rights…
Employee Rights:
How Employee Seek Relief from Labor Tribunal (LT), Human Right Commission (HRC) and Government Ombudsmen
Provision available under the Industrial Disputes Act for employees to seek relief from Labour Tribunals in relation to Termination of Employment and the possible relief garneted by LT including reinstatement of workmen subject to an appeal firstly to the High Courts and thereafter even to the Supreme<br>
slide57. The Syllabus The Employee Law and Employee Rights…
Health and Safety Regulations
Occupational Health and Safety Administration (OSHA) regulations, including their relationship to HRM Occupational safety & health conditions mandatory provisions is available under the Shop and Office Employees Act
Equal Employment Opportunity Regulations and Fair Labor Standards
Explanations of the various type of discriminations faced by female employees due to their gender gap and fair labor standards and the provisions available them to treat with equality<br>
slide58. The Syllabus Current Issues & Trends in HRM (October 22)
Work Place Diversity
Ability and disability diversity in the workplace
Age diversity in the workplace: different types of ages within a business environment and how adjust to an aging population in various ways
Gender diversity in the workplace: gender diversity deals with equal representation of men and women in the workplace
Cultural diversity in the workplace: cultural diversity is a form of appreciating the differences in individuals. The differences can be based on gender, age, sex, ethnicity, sexual orientation, and social status. Organizations have realized the value in acquiring a diverse workforce.
Workplace violence: violence in the workplace and steps that HR can take to reduce it<br>
slide59. The Syllabus Current Issues & Trends in HRM…
Alternative Work Arrangements: HR Challenges in Managing Global Pandemic
Pros and cons of alternative work arrangement: home office, virtual teams and telecommunicating : virtual team, flexibility, drawbacks
HR challenges in managing global pandemic: study the element of a global pandemic situation with analysis of its course and effect and define strategies to overcome HR challenges<br>
slide60. The Syllabus Current Issues & Trends in HRM…
Human Resource Information Systems
Human resource information systems: costs and benefits to employee, HR and organizations– how heading to a 'paperless' office, the amount of information handled by HR professionals seems to keep growing<br>
slide61. Discussion!
Support expected from Consultant to Set Up, Revise or Realign present Financial and HR management policies, systems and tools for each CSO<br>
slide62. Thank You<br>