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Financial Management Systems for Health

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Financial Management Systems for Health

UNDP strengthens financial management systems to increase accountability and promote achievement of national health goals. As part of UNDP core mandate to build and develop capacity, UNDP’s support enables financial management to perform an essential role in implementing Governments’ health policies and promoting national health goals.

Financial management and systems capacities are required to plan, direct, and control financial resources so that organisational objectives can be effectively and efficiently achieved.  Financial management must therefore be integrated into the overall management of the organisation, with close coordination between financial planning and budgeting, and between the planning and delivery of programmatic results.

UNDP’s Offer

  • takes into account the existing assessments and findings for financial management;
  • conducts an objective assessment of all health implementing partners;
  • develops risk mitigation measures;
  • facilitates a capacity development plan for sustainable financial systems for health.
  • UNDP financial tools to mitigate risk include direct payments and reimbursement to enable implementation in high risk environments. Within the strengthening of national financial accounting and reporting systems, national implementation advances consist of cash transferred to a national implementing partner. The financial management modality utilized includes performance indicators and measurable milestones for sustainable transitions to national entities and systems.
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Accountability and Managing for Results

UNDP’s Offer

  • UNDP’s support recognises that financial information requirements need to reflect the fundamental accountability structures of the health system.
  • In a highly centralized system the information system should track expenditure over the whole of the health system, and feed information into the centre
  • In a decentralised system, the information flows from the service delivery point to the centre should be highly aggregated.

Financial systems supporting universal health coverage (UHC)

Helping Governments meet their desire to provide health services to all. UNDP recognises the importance of Universal health coverage (UHC) as governments as seek to strengthen their health systems and to discharge their obligations under the right to health.

UNDP’s Offer

  • UNDP’s approach strengthens the building blocks of the health system that make it possible to deliver services of high quality.
  • UNDP works with Governments to improve financial systems and systems for governance and accountability.
  • The approach maximises health outcomes by ensuring good quality, financially and geographically accessible health services are delivered efficiently.
  • UNDP’s support assists Governments and other entities to evaluate options for this scale up, through accurate financial information, including from the private sector, to provide and inform the basis for health policies.

Systems for Health Within the Public Sector

UNDP’s Offer

  • UNDP supports national entities assess the current financial management system and consider the options to meet national and international reporting requirements.
  • UNDP assists national entities strengthen their financial systems and consolidate financial data including real time data to improve monitoring and decision making.
  • UNDP has customized commercial software, and helped national partners configure the Ministry of Finance public financial management system for the health sector.
Case Study Support to the Financial Management System and Risk Management for Health – Zimbabwe

The Government of Zimbabwe Public Financial Management System (PFMS) had been in limited use by government ministries and did not have the capability for managing donor funding. The Capacity Development Plan 2015-2017 prioritised the development and implementation of the PFMS Grant Management Module and the extension of the PFMS to the provincial and district levels.

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Financial Management Systems and Risk Management

Financial control and risk management are central to the effective management of a health system. UNDP utilises tailored approaches to build resilience. This includes identifying actual and potential threats and opportunities. Facilitating global knowledge sharing as well as in depth understanding of country specific issues, UNDP is able to ensure risk management is embedded in strategic planning as well as routine daily practices.

UNDP’s Offer

Appropriate risk management and internal controls assist organizations in making informed decisions about the level of risk that they want to take and implementing the necessary controls to effectively pursue their objectives.
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  • UNDP works with Government Ministries and CSOs to understand and document the wide range of uncertain internal and external factors that may affect achievement of their objectives. These include:
    • strategic,
    • operational and
    • financial factors.
  • UNDP works with management to focus on identifying actual and potential threats and opportunities, assessing the impact of those risks and then prioritising them.
  • Internal controls, including financial management systems help counter threats and take advantage of opportunities.
  • Appropriate risk management and internal controls assist organisations in making informed decisions about the level of risk that they want to take and implementing the necessary controls to effectively pursue their objectives.
  • UNDP works with management to understand its risk appetite, and identify and implement risk mitigation measures
  • The routine and monitoring controls with the financial management system are a small component to managing risk within the health system
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Case Study Mentoring to Strengthen Financial Systems and Mitigate Risk - Zambia

In Zambia, UNDP assumed the role of interim Principal Recipient (PR) of Global Fund grants in 2010, with the aim of strengthening national capacity in key functional areas. This integrated capacity development approach of resilient and sustainable systems for health included working closely with the MOH to strengthen programme management, health information systems, supply chain management and establishing a new financial management system. It resulted in the Ministry of Health reassuming the PR role again in 2015.

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