New automated system for management of donor funds launched

Devolution and Planning Cabinet Secretary Anne Waiguru (left) and Principal Secretary Eng Peter Mangiti at a past function. The government has directed immediate adoption of a new Automated Financial Management System for efficient management of donor funds in community driven projects. PHOTO | MARTIN MUKANGU  

In Summary

• It is expected to boost donor confidence on the use and management of funds and grants that are released for various projects. It will also be used in audit of funds.
• Devolution and Planning Principal Secretary Eng Peter Mangiti gave the directive to the management of the Community Development Trust Fund under the Ministry, which coordinates donor funding for various projects implemented through community based organisations and private-public sector partnerships.
• Mr Sang said donor support for the program has been increasing over the years, justifying the need for a strong finance and grants management system for integrity and accountability in the management of the resources.

By CAROLINE WAFULA
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By VENESSA NYASIO
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The government has directed immediate adoption of a new Automated Financial Management System for efficient management of donor funds in community driven projects.

Devolution and Planning Principal Secretary Eng Peter Mangiti gave the directive to the management of the Community Development Trust Fund under the Ministry, which coordinates donor funding for various projects implemented through community based organisations and private-public sector partnerships.

European Union and the Danish Government currently fund the projects under the programme to the tune of Sh3.36 billion.

The government, through the Ministry of Devolution and Planning handles donor negotiations as well as oversights and monitors implementation of the projects.

The new financial and grant integrated management system was officially launched on Tuesday.

It is expected to boost donor confidence on the use and management of funds and grants that are released for various projects. It will also be used in audit of funds.

The current system of use of Excel spreadsheets has been termed analogue and cumbersome, as well as inefficient.

Eng Mangiti directed the management of the program to ensure full migration to the new system by Wednesday.

“There is a tendency that when a new system is introduced, people want to run a parallel system. It’s not going to happen here, you must ensure full migration from the analogue system without exception,” he said.

Head of the European Union’s Social Affairs and Environment desk Dr Hjordis D’ Agostino Ogendo said the new system will ensure trust among donors.

“CDTF is embracing modern technology and that is something that we as donors are very happy about,” she said.

She said the donors expect that the system will improve the decision making process. “Funds management will definitely be much more efficient that it has been,” she said.

The Programme Coordinator Eng Benson Sang said the system will also cover accounting, procurement, human resource and payroll management to ensure transparency and accountability.

Mr Sang said donor support for the program has been increasing over the years, justifying the need for a strong finance and grants management system for integrity and accountability in the management of the resources.

He said the current system was difficult to manage in terms of handling reconciliation.

“We are confident that this system will provide the desired management solutions for improved efficiency, transparency and accountability of public resources,” he said.

CDTF has funded and concluded over 783 community based socio economic and environmental projects in rural and semi-urban areas in the country through the program and is currently implementing a further 270 projects.

Areas of focus have included poverty alleviation, emergency drought management, environmental conservation, biodiversity and natural resource management.