FMD Pro – The 4 Building Block Model
What is it?
The foundation of effective financial management is a strong financial system. An organization’s financial system is the central pillar for the planning, organizing, monitoring and controlling of financial resources.
While there is no universal standard for a financial management system, FMD Pro uses the four building block model as a framework. The model is composed of four fundamental, inter-linked building blocks that must be in place to ensure good practice in financial management. They are:
- Accounting Records – every organization must keep a record of all financial transactions that take place so they can show how funds have been used.
- Financial Planning – preparing budgets and cash flow forecasts for projects and programs and for longer-term financing strategies, to ensure successful projects and organizations.
- Financial monitoring – using financial reports to help managers monitor the progress of their projects and take actions to keep things on track; they are also needed for accountability to funders and external stakeholders.
- Internal Control – a system of checks and balances designed to manage risk, safeguard financial resources from loss due to errors, theft or fraud and protect staff.
FMD Pro tools are designed to:
- Access via a mobile-friendly layout that is easy to explore regardless of where you are.
- Apply to your real-life challenges, including how-tos, examples, and templates, delivered in a clear, engaging format.
- Adapt to local contexts, local languages and specific organizational processes.
And, did we mention that the resources are free to anyone working in our sector?
Who is involved?
Whether you are an experienced project manager, or someone just starting out – FMD Pro will help you improve your financial management.
Establishing a strong financial management system helps you and your organization on many levels. Strong project financial management puts you in the best possible place to achieve your project objectives and goals, it also:
- Makes sure that project financial resources are used effectively and efficiently;
- Improves your accountability to funders and other stakeholders;
- Enables you to gain the respect and confidence of funding agencies, partners and beneficiaries;
- Minimizes the impact of internal and external risks on your operations;
- Gives you the edge in competition for increasingly scarce resources;
- Prepares the ground for the longer-term sustainability of your project or organization.