The activities of Finance Section is divided into grant management and operational fund management. Financial assessment of potential applicants is handled by MJF finance section.

MJF receives quarterly progress and finance report from partners and disburses fund quarterly. Financial monitoring for each partner is scheduled quarterly when on the job training & capacity building on managing the financial system takes place. Weaknesses in the financial system of partners is detected and feedback given. MJF provides regular training and capacity building support to all partners on a regular basis. In case of serious irregularities an investigation is conducted and partnership cancelled whenever appropriate.

In order to establish a transparent and accountable financial management system, the internal audit of the organization is outsourced to an independent chartered accounting firm.

The operations accounts of MJF is audited plus a management account is also conducted to check compliance with established policies. The auditors reports directly to the Governing Board of MJF.

MJF is using the international accounting software for its accounting system which enables MJF to produce error free reporting as well as save time and prevent scope for manipulation.

A detail budget is prepared based on MJF plans to support up to 150 partners in the next 5 years which includes ongoing commitment and some new ones. The budget also includes management costs, advocacy research networking and a certain amount for fund raising and exploring sustainability options.

Budget

MJF is submitting a total budget of £45.8 million for October 2007 to December 2012 of which 93% is for programme costs including sub-grants to partners (83%), 4% administrative and 3% others (capacity building, networking, fund raising). A detail budget with 3 different components is attached.

Budget Inputs

The Budget has been redesigned to better allocate funds by programme activity:

• Program costs including grant making to partners is the bulk of the budget (83%)
  
• There is a provision to provide support to non-NGOAB registered organisations. It is split into activities relating to research, policy/advocacy, networking (7%) plus a capacity building component (3%)
  
• The budget also shows administration and management costs (CEO, establishment, MIS, M&E, and Communications) (4%).
  
• In view of the importance of sustainability, a budget provision has been made for project development and fundraising (1%)
  
• A contingency fund is has been added for unforeseen expenses or to provide support during natural calamities or other disaster. (2%)