FINANCIAL
The financial pillar provides the Centre with strategic guidelines to ensure an adequate level of resources to deliver impact in line with the Strategy and to develop the structures, processes and tools that allow these resources to be efficiently managed. The pillar’s action plan identifies four outcomes in the areas of funding, budgeting, cost efficiency, and financial resilience. In relation to funding, the GICHD aims to increase the level of core and flexible funding to enable the Centre to allocate resources across its five outcomes. In addition, the GICHD is exploring methods to implement a harmonised overhead cost recovery approach to ensure that the Centre’s projects are fully financed. In 2024, the primary source of funding will continue to be institutional. However, the Centre will be exploring the possibility of expanding and diversifying its donor base. Concerning its budget, in 2024 the GICHD will continue to revise the planning and budgeting processes. New tools (including new software) and processes (i.e., monthly closure and forecasting) will be implemented to monitor the Centre’s finances, analyse any deviation from initial targets and to take corrective measures, as necessary.
To achieve cost efficiency, the GICHD will be assessing its procurement process to remain efficient and save on costs. Investing more in insourcing rather than incurring outsourcing fees is a priority for the Centre. To this end, the Centre will continue to evaluate its inventory of digital tools to reduce unnecessary costs while an annual accounting depreciation will be applied to the inventory of the GICHD’s assets. The Centre will also collaborate with DCAF and GCSP to obtain better prices on travel fees and offices supplies. Other options will be explored such as the possibility of sharing space and staff, whilst the GICHD aims to remain an active member of the three centre’s IT forum. Finally, maintaining financial resilience is at the heart of the financial pillar. With the ongoing economic uncertainty – including inflationary and liquidity pressures – the Centre is looking ahead to emerging and escalating risks. In 2024, the GICHD will work towards maintaining adequate levels of reserves and liquidity. In the short term, cash flow management solutions will be applied to ensure that this is the case. The objective is to improve the collection and payment cycle. In the medium term, the GICHD aims to start conversations with donors to explore the possibility of generating operational reserves. The level of reserves is set to be defined at the end of 2023.
©GICHD/Antoine Tardy, 2022
GICHD OUTLOOK REPORT 2024
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