Content in review

Expenditure of Financial Management Systems

Let me know when the updated version of the UNDP Health Systems website is online:


Financial Management Systems for Health


Ensures expenditure is incurred in a transparent manner and promptly recorded

Expenditure systems and processes are an important part of the budget execution. It is important to have policies, procedures and internal control system for incurring compliant expenditures in accordance with approved work plans and budgets, at a value for money cost and system for timely recording and safeguarding of records.

There should also be internal control system developed which covers segregation of duties to allow the requisitioner, to be separate from the purchaser, separate from the person who makes the payments.

UNDP’s Offer

UNDP has assisted health programmes to improve expenditure systems in Africa, Asia and the Caribbean.

  • UNDP works with Ministries of Health to utilise existing national systems and procedures to
    • initiate,
    • approve and
    • report expenditure for health programmes
  • UNDP provides technical support to CSOs and Governments to
    • design and implement robust expenditure systems including transparent recording of shared costs
    • develop manuals, guidelines and standard operating procedures (SOPs) to authorise and approve expenditure including
      • establishing a code of conduct to avoid occurrence or perceptions of conflicts of interest
      • stating methods of procurement and document thresholds when different methods should be applied
      • developing standard procedures for
        • requests for tenders.
        • procedures for bid evaluation.
      • procedures that are transparent and competitive, with acceptable levels of compliance
      • establishing or enhancing accountability and tracking of contracts, commitments and ensuring specified goods and services are received.
    • ensure adherence to established policies for project specific costs
  • UNDP has developed a capacity assessment tool which helps to identify areas for strengthening in policies and procedures for expenditure management in health systems
  • UNDP works with Government Health Systems and projects, as well as Civil Society Organisations to development milestones and indicators, including training needs to measure improvements in the timely incurring and recording of expenditure.

Suggested indicators

UNDP has utilised clear indicators to monitor improvements in expenditure systems

  • Policies and procedures manuals are approved and available
  • Finance staff have been trained in SOPs
  • Annual signed Conflict of Interest Statements are available
  • 100% compliance with relevant accounting standards
  • Standardised bidding documents and templates are available and used
  • Standardised contracting templates are available and used
  • Expenditures are recorded on a timely basis
  • Goods received are inspected timely (within specified timelines e.g. within 3 working days of arrival)
  • A list of goods and services ordered not yet received is available