Objective 3.1 – Funding and Financial Management

Sound financial management is essential for OCHA’s effectiveness. OCHA funding and financial management practices guarantee that contributions to the organization are budgeted and allocated for effective and efficient delivery of coordination services. To enable such delivery, OCHA must continuously review and adapt its internal financial monitoring, and promote and safeguard accountability.

Recent enhancements to OCHA’s accounting systems, including automated reports, aim to foster greater discipline in management practices. Through ongoing customization and integration, OCHA financial analysis is becoming more timely and accurate in support of decision-making. Stronger budget-control mechanisms are sharpening cost planning and monitoring, and facilitating necessary adjustments.

OCHA adopted several recommendations from the 2010 external review of its administration and management. It will continue to implement the recommendations in 2011. In particular, OCHA will further improve financial management and monitor cost-efficiency by updating existing systems and working towards full automation of reporting. OCHA will reinforce cash-management practices, including on cash reserves and project accounts.

In 2011, OCHA will seek higher and more predictable levels of contributions from a broader range of donors. A specific effort will be made to increase the level of contributions as early in the year as possible. OCHA will have achieved a more equitable spread of earmarked funds in 2010 compared with the previous year, where over 70 per cent of earmarking was for the top 10 high-visibility offices. In 2011, OCHA will continue to seek more balanced earmarking from a larger pool of donors. Additional sources of income will be pursued concurrently, including through a more systematic retention of new donors.

Under its new policy, OCHA is committed to a more professional and systematic approach to resource mobilization and financial management that provides consistent and high-quality services to the international humanitarian system. Given its clients’ high expectations, OCHA will again count on donors to be equally predictable with their generous contributions.

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