1 Outline of BTC’s general framework Financial management of projects

2 2 TRAINING’S OBJECTIVE The participants will have acquired the basics of The structure of BTCThe structure of BTC The domains of financial management The management contract and the financing of BTC The reporting cycle The financial tools used by BTC

3 3 1STRUCTURE OF BTC 1.1 Actors of financial management Projects Representations: ResRep, LAF, Programme Officer In the field of finances, control of a.o. Accounting Financial planning Budget change Respect procedures HQ The role of each co-worker is defined in the processes. The philosophy: project-level decentralisation

4 4 TRAINING’S OBJECTIVE The participants will have acquired the basics of The structure of BTC The domains of financial managementThe domains of financial management The management contract and the financing of BTC The reporting cycle The financial tools used by BTC

5 5 2DOMAINS OF FINANCIAL MANAGEMENT BUDGETACCOUNTING REPORTING FINANCIAL PLANNINGTREASURY

6 6 2DOMAINS OF FINANCIAL MANAGEMENT 2.1 Budget Composition of the budget Budget monitoring Budget changes

7 7 2DOMAINS OF FINANCIAL MANAGEMENT 2.2 Financial planning

8 8 2DOMAINS OF FINANCIAL MANAGEMENT 2.3 Accounting Registration and justification of financial transactions Requirements for accounting documents Monthly closing Control Consolidation

9 9 2DOMAINS OF FINANCIAL MANAGEMENT 2.4 Treasury management Follow-up of the situation of the treasury Payment modalities Cash call Management of bank accounts and cash Management of bank relations

10 2DOMAINS OF FINANCIAL MANAGEMENT 2.5 Reporting Transversal aspect Reports Are based on the data of the different domains Stakeholders Donor Management (project, representation, HQ) Partner country (JLCB, CTS…) Others

11 TRAINING’S OBJECTIVE The participants will have acquired the basics of The structure of BTC The domains of financial management The management contract and the financing of BTCThe management contract and the financing of BTC The reporting cycle The financial tools used by BTC

12 3FINANCING MODES Declaration of Paris (2005) Alignment Harmonisation Various execution modalities Partner system Belgian system Third party system  Motivation of choice  Identification of financial risks

13 3FINANCIAL MODES Responsibilities Belgian ~ “Régie” (state-managed) Partner ~ National execution Joint ~ Financial cooperation (co-management) Implications Power of signature Transfer of property Public contracts Legislation about employment contracts

14 4MANAGEMENT CONTRACT Annual BTC budget 15 April year N-1first budget version year N 15 October year N-1 final budget version year N Budget of activities Based on financial planning of projects The annual budget per project is indicative

15 4MANAGEMENT CONTRACT Financing of BTC (cycle of financing) HQ and Representations: 2 times per year Projects: quarterly 25% of total budget approved Reporting: half-yearly budgetary follow-up Justification of expenses: 30 June of the following year Internal control: increased autonomy of BTC thanks to a more demanding system of internal control.

16 TRAINING’S OBJECTIVE The participants will have acquired the basics of The structure of BTC The domains of financial management The management contract and the financing of BTC The reporting cycleThe reporting cycle The financial tools used by BTC

17 5REPORTING AND FINANCING CYCLE Deadlines Accounting Financial planning Cash calls Transfers of funds

18 5REPORTING AND FINANCING CYCLE

19 TRAINING’S OBJECTIVE The participants will have acquired the basics of The structure of BTC The domains of financial management The management contract and the financing of BTC The reporting cycle The financial tools used by BTCThe financial tools used by BTC

20 6FINANCIAL TOOLS FIT (Financial Information Tool) Programme Projects Accounting Budget monitoring Financial planning Treasury management Consolidation at Representation level

21 6FINANCIAL TOOLS NAVISION (HQ) Programme Official accounting Of HQ Of Representations Integration of projects’ FIT

22 6FINANCIAL TOOLS Other tools available Directives of financial management of projects FIT Manual Procedures Work instructions Templates