Planned Disbursements or Commitments?

Community Zone
#1

When looking at the Financial Chapter of an Activity File, we come across the following:

We get funds from a lead organisation (the donor) and will spend the funds on activities related to different countries. We have put each country in one separate country (activity) file. We will spend some part of each country budget on costs, directly paid by us, and most part of each country budget, we transfer to local partner organisations in those countries.

BUT: How to put all financial figures in the Financial Chapter in an Activity File?

We thought it should be like this:
Budget:The yearly country budget, approved by the donor.
Planned disbursements: We think this is about specific planned amounts of us to the country, but are wondering if this is not doubling as Commitment might be seen as the same? Or maybe this should not really be filled in?

Transactions:

  • Incoming Commitment (contracted amounts, as mentioned in the contract between the donor and us),
  • Incoming Funds (amounts, really received from the donor to us),
  • Commitment (planned installments as mentioned in the contract between us and the local partner organisation),
  • Disbursement (payments from us to the local partner organisation)
  • Expenditure and reimbursement (amounts accounted for by us and the partner organisation on a quaterly basis)

Is our thinking correct?

#2

Thanks for the question @jacqkodden. From a general IATI publishing perspective your proposal looks to be fine although it is of course always good to see the actual IATI implementation to be sure. However, as a Dutch publisher I have also invited our colleagues from the Dutch Ministry to this discussion in case they have anything to add?

#3

The proposal is fine if it adequately reflects the way you work. For understanding it would be helpful @jacqkodden to further clarify who you mean with ‘donor’/‘lead organisation’ and with ‘we’ and the ‘local partner organisations’.
The difference between disbursement and commitment might be non-existing, but they may also deviate (one year commitment in 4 planned disbursements, 4 year commitment, with 1 annual planned disbursement). Most governments work with one year budgets, but there is no rule that tells ngo’s to do the same.
It might even vary in the relation between the ‘donor’ and ‘we’ and between ‘we’ and the ‘partner organsiations’
In short, the proper way to put these financial figures in an activity file depends on your own practice.