FINANCING

Systems strengthening of social welfare ministries: sound financial systems, shared responsibility, diversity, sustainability

The Ministries typically responsible for coordinating services for orphans and vulnerable children, referred to here as Social Welfare Ministries, are usually underfunded and often lack strong connections to other ministries that also serve children, such as ministries of health, education and justice.  For example, in 2009, Ghana’s Ministry of Women and Children’s Affairs “received around 1 per cent of government budget allocations compared to 15 per cent received by the Ministry of Education and 10 per cent by the Ministry of Health.” (1) This type of inadequate financing leaves ministries charged with child protection almost completely dependent on NGOs and external donors. Yet, in a number of countries, Social Welfare Ministries have developed strong budget justifications to successfully increase their financial allocations. (2)  In the long term, without adequate public funds, key components of the social service system such as the workforce will remain neglected.

Foundationally, each Social Welfare Ministry must establish good working relationships with other ministries, particularly the Ministry of Finance, and with a broad range of donors interested in child protection.  In addition, they must develop sound financial management systems to be seen as credible and reliable partners in social service delivery.  Sustainable financial support systems for orphans and vulnerable children’s programs need to be in place at every level, from family households to government ministries.

Building on these systems, the Ministry must report not only budget and cost data, but also impacts and outcomes of child protection and welfare services for orphans and vulnerable children. (3) Such data provide a strong evidence base to secure needed funding from the Ministry of Finance and other donors.  However, Social Welfare Ministries often lack sufficient financial management and monitoring and evaluation (M&E) capacity.

Building financial capacity together: promising strategies for financing orphans and vulnerable children’s programs and partners

Meeting the needs of children orphaned or made vulnerable by HIV and AIDS provides an opportunity for collective action on individual, local, regional, and national levels.  In Southern Africa, regional OVC donors have collaborated on country level situation and gaps analyses, leading to jointly financed key regional meetings and shared strategies to address critical priorities. (4) While countries provide overall leadership and governance, they must work together with development and donor partners to ensure adequate and predictable financing from both domestic and international sources. (5) Budgeting and cost-benefit analyses must underscore the need for additional resources for social protection of orphans and vulnerable children and their families.

Family and Community

Although the family forms the smallest unit within the broad network of systems, support for household economic strengthening (HES) should be an essential part of the social service system’s approach to building and sustaining financial capacity. Developing such capacity in family systems means supporting interventions to help families learn money management skills, find low-risk ways to generate more household income, and budget for priorities, especially the well-being of their children.  The strongest communities engage in a range of economic activities, rather than a single focus such as agriculture or mining. (6) As the economy improves, the entire community may benefit.  Partners can help foster greater economic security by conducting market assessments, supporting efforts to diversify economic activity, working with community and local government leaders to manage public finances efficiently, and identifying business investors who are willing to expand operations within the community. (7)

Key activities to improve financing capacity

• Strengthen families as primary caregivers of children, through supporting household economic initiatives and money management training for parents and caregivers.
• Help communities organize market-based economic strengthening projects.
• Encourage community members to provide support or in-kind donations to vulnerable families.
• Identify business investors willing to expand operations within communities.
• Have clear, complete, and up-to-date financial management systems at each level, including procedures for documenting, reporting and accurately tracking expenditures. (8)

Civil Society Organizations

Adequate financing often depends on better-than-adequate advocacy skills and creativity in human resources management.  To make the case for increased financing, CSOs and government partners need to clearly show how strengthening the social welfare system contributes to improved HIV and AIDS results. (9)  This requires evidence based-proposals with well-defined business development plans that cost-out human resource needs.  Strengthening the system means strengthening financial support of the typically underpaid or unpaid Social Service Workforce.  When CSOs coordinate programs, by technical and geographic area, they can expand and maximize their financial and human resources to increase cost-effective service delivery for children affected by HIV and AIDS. (10)

Key activities to improve financing capacity

• Support CSOs to develop sound business plans, well-documented and data-driven financial systems for managing sub-grants and contracts, and effective mechanisms for tracking resources.
• Collaborate with the Social Welfare Ministry and partners at every level, including local service organizations and communities, to develop budget requests and well-written proposals to other donors for specific projects.
• Help CSOs to coordinate with other organizations, Social Welfare Ministries, and in-country donors to complement existing programs and maximize financial and human resources.
• Include diverse organizations as potential donors, and craft strong, collaborative proposals with community-based and faith-based organizations, local and international nongovernmental organizations, and private partners.
• Broker partnerships between larger well-known CSOs and promising smaller local organizations to support opportunities for collaboration and future funding. (11)
• Help CSOs to reach out to the private sector to establish partnerships and expand funding opportunities. (12)

Government

Sustainability of social protection and child welfare programs is a shared responsibility between countries and their partners. Social Services Ministries must establish and strengthen relationships with a diverse range of current and potential partners at all levels. To advocate for increased funding, ministries need complete, current, and well-documented financial information about all partners. Knowing the costs and benefits of partner services strengthens the Ministry’s position to request increased funding from the Finance Ministry and other donors.  Identifying access points, preparing budgets and cost-benefit analyses, and sharing evidence-based outcomes data are critical tools for championing increased investment in social protection for the most vulnerable children.

Key activities to improve financing capacity

• Support strategies that maximize both financial and human resources, encourage sustainability, and avoid recurring costs (e.g., recurring equipment costs).
• Develop strong budgeting, tracking, and data systems to demonstrate the benefits and outcomes of investing in social protection and child welfare services.  While this is very important, it is also quite difficult to do given the inadequate human resources within various organizations in the social welfare sector.
• Assist Social Welfare Ministries with child protection costing and budgeting to increase cost-effective service delivery.
• Support at work mentoring and technical assistance for Ministry accountants and other budget staff to improve skills in costing activities and tracking expenses.
• Consider hiring economists to work with social service experts to help Ministries of Social Welfare advocate with the Finance Ministry for additional government resources.
• Seek diversity in income-generating activities, including public and private partnerships, to ensure sustained funding amid regional, national, and local economic instabilities.
• Have clear policies and procedures for grants and contracts management.
• Present evidence of the financial benefits of investing in initiatives to strengthen the social welfare workforce, using the social service framework as a tool.
• Work with local governments to manage public finances and maximize impact.