Financial Management: The backbone of successful project delivery
According to the World Bank Financial Management Manual, project financial management combines the activities of planning, budgeting, accounting, financial reporting, internal control, auditing, procurement, disbursement and the physical performance of a project with the aim of managing project resources properly, to achieve project’s development objectives.
Sound financial management together with accurate and timely financial data are critical prerequisites for successful project implementation as they aid in effective decision making to guarantee project completion per timelines, scope of deliverables and budget. In addition, these help project management team to take decisive corrective actions on factors that threaten to derail the project.
Most projects are financed by either the government or donors for economic and social development purposes. Sound financial management not only provides assurance of prudent use of donor funds, but it also builds assertion that the project will have sustainable outcomes and benefits to the intended community and the country’s economy. Therefore, recipients of donor funding should endeavour to invest, account and accurately report all funds allocated to projects as well as institute above board corporate governance structures; which will ensure successful project implementation and earn donor and partners’ confidence.
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Peninah Musya is Audit Assistant Manager, KPMG in Tanzania (email@example.com). The views and opinions are those of the author and do not necessarily represent the views and opinions of KPMG