2014 Year of Financial Management

Financial management is a critical part of any organization. Everyone who works towards achieving the objectives of an Agricultural Cooperative plays an important role in assuring the effective and appropriate use of its financial resources. However, basic financial management capacities are usually limited, and consequently, financial management is often excluded from carrying out the operating plans of these cooperatives. To assist cooperatives in overcoming these challenges, Agriterra designed a trainings module to strengthen financial management capacity and comprehension at cooperative level and to build the confidence of those individuals involved so they can: • adopt financial management systems suitable for running the organization. • manage and control financial resources efficiently and effectively. • promote transparency and the good faith of the entire staff. The training is mainly directed at the staff of agricultural cooperatives with a high level of responsibility, whether technical or political, within the organization. Main components of the training module are: • The "what, why and who" of financial management for agricultural cooperatives. • How to achieve good practices in financial management: the fundamental principles such as: • Drafting and effective use of budgets, including budgets by departments and consolidated budgets as well as cash flow forecasts and financing plans. • What accounting records should your cooperative have and why? • Budgeting and accounting basic expenses of the central administration • Budget monitoring and control, drafting and using budget monitoring reports • Interpret the general balance sheet. How to make sense of the annual financial statements? • Asset protection - Internal control and procedure systems. • Direct the audit process • Strengthen the communication between the Board of Directors and the Management Staff. In 2012 - 2013 the training module has been developed and piloted in Peru. In 2013 trainings have been conducted in Tanzania and Bolivia. In 2014 the scope of the training will be extended to the majority of Agriterra clients in Kenya, Tanzania, Uganda, Ethiopia, Indonesia, Bolivia and Peru. For that purpose local trainers will be selected and trained through an intensive training- and coaching program. Furthermore Agriterra liaison officers and/or agribusiness advisors will be actively involved in the trainings. All materials will be adjusted to local context for each country and will be translated in Swahili (Tanzania), Amharic (Ethiopia) and Bahasa (Indonesia).