NASA / Financial and Expenditure Flows: Reconstruction of...

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NASA / Financial and Expenditure Flows: Reconstruction of

Transactions

NASA WorkshopDecember 4th 2007

Bucharest, Romania

Facilitator: Christian Arán, UNAIDS

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“Who in the world am I? Ah, that's the great puzzle.”

Lewis Carroll

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Resource Tracking &TransactionsResource Tracking &Transactions

Resource tracking is based on a methodology to reconstruct all the financial transactions related to the National Response to HIV and AIDS epidemic.

A transaction is a transfer of resources between different economic agents.

It follows the money from sources to mobilization to provision and factor tracking to consumption (final use).

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Transaction: the basic unit of the financial flow, that describes the transit of resources from a source to an agent, who purchases from a provider one or more ASC benefiting beneficiary populations, specified or not, and produced consuming production factor.

Tracking TransactionsTracking Transactions

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Financial Flow

Consumption Flow

Financial and Expenditure FlowsFinancial and Expenditure Flows

Provider

Production Factors2

ASC1

F. Source

Activities or ASC

Beneficiary Populations2

F. Agent

ASC2

ASC3

PF1

BP1

PF3

Bp3

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The agentsThe agents’’ triangulationtriangulation

Finan

cing

Finan

cing Provision

Provision

ConsumptionConsumption

====

==Fin

anci

ng S

ourc

es

Finan

cing

Sou

rces

& F

inan

cing

Age

nts

& F

inan

cing

Age

nts Providers &

Providers &

Production Factors

Production Factors

Aids Spending Categories & Beneficiary PopulationsAids Spending Categories & Beneficiary Populations

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∑Activities or ASC: $ 10

Financial and Expenditure Flows &Agent’s Triangulation

Provider

Production Factors2

ASC1

F. Source

ASC

Beneficiary Populations2

F. Agent

ASC2

ASC3

PF1

BP1

PF3

BP3

$ 10 $ 10

Example: ($ 10)

∑ PFi: $ 10

Finan

cing

Finan

cing Provision

Provision

ConsumptionConsumption

====

==∑ BPi: $ 10

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Transaction: the basic unit of the financial flow, that describes the transit of resources from a source to an agent, who purchases from a provider one or more ASC benefiting beneficiary populations, specified or not, and produced consuming production factor.

FS FS –– FA FA -- PSPS

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Financial and Expenditure Flows & Actors Role

Source

Agent

Provider

Transactions Actors / Role

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Source

Agent

Provider

Transactions Actors / Role

Financial and Expenditure Flows & Actors Role

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Source

Agent

Provider

Transactions Actors / Role

Financial and Expenditure Flows & Actors Role

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Source

Agent

Provider

Transactions Actors / Role

Financial and Expenditure Flows & Actors Role

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Source 1

Agent 1

Provider 1

Financing and Consumption Flow Analysis – How Many Flows?

1 Source, 1 Agent & 1 Provider:

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1 Flow of financing and consumption.

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Source1

Agent 1

Provider 1

2 Sources, 1 Agent & 1 Provider: 2 Flows of financing and consumption.

Source 2

Provider1

Production Factors2

ASC1

Source1

ASC

Beneficiary Populations2

Agent1

ASC2

ASC3

PF1

BP1

PF3

BP3

Provider1

Production Factors2

ASC1

Source2

ASC

Beneficiary Populations2

Agent1

ASC2

ASC3

PF1

BP1

PF3

BP3

1 2

Ex.: Two different Sources for the same Agent / Agent with one Provider

Financing and Consumption Flow Analysis – How Many Flows?

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Ex.: Two different Sources / Two Agents / One Provider:

Source1

Agent 1

Provider 1

Source 2

1 2

Agent 2

4 3

2 Sources, 2 Agents & 1 Provider: 2, 3 or 4 Flows of financing and consumption.

Financing and Consumption Flow Analysis – How Many Flows?

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Ex.: Two different Sources for the same Agent / Agent with one Provider. Pool of Funds.

Source1

2 Financing Flows…

Source 2

Provider 1

Agent 1… and only one

Consumption Flow.

Financing and Consumption Flow Analysis – How Many Flows?

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Financing and Consumption Flow Analysis – Examples

More than one Source for the same Agent / Earmarked Funds

“Follow the money!”

Source 1 Source 2

Agent 1

P1 P2 P4P3

Agent 2 Agent 3

P5 P6

ASCi ASCi ASCi ASCi ASCi ASCi

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Dif. Sources to same Agent / Pool of funds:Pool of funds:

Percentage distribution of the

funds? 10 $15 $25 $

Mass Media

50 %

30%

20%

ARV

50 %

30%

20%

Blood Safety

50 %

30%

20%

20 $ 30 $25 $ 25 $

Financing and Consumption Flow Analysis – Examples

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Dif. Sources to same Agent / Earmarked & Pool of funds:

Earmarked & Pool of funds: Follow the

money and Percentage distribution of the

funds!

15 $25 $

Mass Media

ARV

50 %

30%

20%

Blood Safety

50 %

30%

20%

20 $ 30 $

10 $

Condom Social Marketing 100% (5 $)

5 $ Earmarked F 1.12

50 %

30%

20%

Financing and Consumption Flow Analysis – Examples

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P1

Source 1 Source 2

Agent 1

P2 P4P3

Agent 2 Agent 3

ASCi ASCi ASCi ASCi ASCi ASCi ASCiASCi

P5 P6

National Response

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SOURCES Agents Financiers Prestataires

Public Ministere de la Sante Hôpitaux

Autres ministères CTA

CNLS Des autres ministères

ANCS

Bilatéral ONG Internationales ONG/OCB

Coopération bilatérale

Multilatéral

Cabinets médicaux

Hôpitaux privés

Laboratoire privée

Privée Ménages Pharmacies

Medicine Traditionnelle

Système des Nations Unit et autres multilatéraux

ONG Internation

National Response

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GF Funds (Source of Fund)

Foreign Aid (Source of Fund)

Ministries, Departments, Agencies (Source,Agents and Providers)

LGAs(Source, Agent, Provider)

Project Funding

Funding through Foreign Org (Agent, Provider)

NGOs, CBOs, FBOs(Providers)

NGOs, CBOs, FBOs(Providers)

NAP(Agents andProvider)

NGOs,CBOsFBOs(Providers)

Health Facilities (Providers)

MoH(Source of Fund Agents andProvider)

National Response and Financing and Consumption Flows

Example of National Response:

Analyze separately each Financing and Consumption Flow.

. . .

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Financing and Consumption Flow Analysis –Multiple levels of Financial intermediaries

?

?

Financing Agent: only one for each flow... Which organization decides the use of

Funds?

Source 1

Agent 1

P1 P3 P5P4 P6

Agent3 Agent 4

Agent 2

Financing Agent:

Agent “ Purchaser”

ASCi ASCi ASCi ASCi ASCi

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ASCi ASCi ASCi ASCi ASCi

Source 1

Agent 1

P1 P3 P5P4 P6

Agent3 Agent 4

Agent 2Financial

Intermediary?

Financing Agent:

Agent “ Purchaser”

(Ex. Agent 4)

Financing and Consumption Flow Analysis –Multiple levels of Financial intermediaries

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ASCi ASCi ASCi ASCi ASCi

Source 1

Agent 1

P1 P3 P5P4 P6

Agent3 Agent 4

Agent 2

Financial Intermediary?

Agent “Purchaser”

(Ex. Agent 2)

Financing and Consumption Flow Analysis –Multiple levels of Financial intermediaries

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Many Agents Layers / funds transfer (no resource consumed)

Agent 2 receives 30 $ and distributes 30 $: not included in the

transaction!

Agent 4 is the Agent in the transaction.

30 $

30 $

Financing and Consumption Flow Analysis –Multiple levels of Financial intermediaries

ASCi ASCi ASCi ASCi ASCi

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Many Agents Layers / funds transfer (resources consumed – e.g.: overhead)Agent 2 receives 30 $ and

distributes 28 $:

2 $ consumed in the resources intermediation!

Agent 2 might be a Provider of ASC.402

Transaction cost.

30 $

28 $Agent 4 is the Agent

of the original transaction

Financing and Consumption Flow Analysis –Multiple levels of Financial intermediaries

ASCi ASCi ASCi ASCi ASCi

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Multiple Level of intermediaries

+ MoH

Who is the Agent?

$ MoF

NAC

NGO “A”

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Multiple Level of intermediaries

+ MoH

$ MoF

MoF

Production Factors2

GF

ASC

Beneficiary Populations2

Agent1

ASC.4.02 Transaction costs associated with managing and disbursing funds

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Multiple Level of intermediaries

+ MoH

$ MoF

NAC

NGO “A”

MoH

Production Factors2

GF

ASC

Beneficiary Populations2

Agent1

ASC.4.02 Transaction costs associated with managing and disbursing funds

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Multiple Level of intermediaries

+ MoH

$ MoF

NAC

NGO “A”

NGO “A”

Production Factors2

GF

ASC

Beneficiary Populations2

NAC

ASC….

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Multiple Level of intermediaries

+ MoH

$ MoF

NAC

NGO “A”

MoF

Production Factors2

GF

ASCBeneficiary Populations2

Agent1

MoH

Production Factors2

GF

ASC

Beneficiary Populations2

Agent1

NGO “A”

Production Factors2

GF

ASC

Beneficiary Populations2

NAC

ASC.4.02 Transaction costs associated with managing and disbursing funds

ASC.4.02 Transaction costs associated with managing and disbursing funds

ASC…

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NASA: Actual Expenditure EstimationsNASA: Actual Expenditure Estimations

Resources allocated, resources committed, resource needs…

… are usually not equal to Budget executed, disbursements, or actual expenditures…

…NASA tracks actual expenditures on the HIV Response.

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The agentsThe agents’’ triangulationtriangulation

Finan

cing

Finan

cing Provision

Provision

ConsumptionConsumption

====

==Fin

anci

ng S

ourc

es

Finan

cing

Sou

rces

& F

inan

cing

Age

nts

& F

inan

cing

Age

nts Providers &

Providers &

Production Factors

Production Factors

Aids Spending Categories & Beneficiary PopulationsAids Spending Categories & Beneficiary Populations

How can there be an “Agent

Triangulation”?

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Example Example ““Top DownTop Down”” & & ““Bottom UpBottom Up””

Expenditure: 10? 29? or 9?

Source

Agent

Provider 1 Provider 2

$ 10

$ 6$ 4

Activities Produced P2: $ 6Activities Produced P1: $ 3

$ 9 !

$ 3 !

Finan

cing

Finan

cing Provision

Provision

ConsumptionConsumption

====

==

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P1

Source 1 Source 2

Agent 1

P2 P4P3

Agent 2 Agent 3

ASCi ASCi ASCi ASCi ASCi ASCi ASCiASCi

P5 P6

NASA NASA –– Resource TrackingResource Tracking

NASA: we analyze data “Bottom up” & “Top down”

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NASANASA

Key Issue:

Avoid double counting!

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Cross checking dataCross checking dataTo avoid double counting and to assure capturing actual expenditure:

Understand the Financing and Consumption transactions “map”, respect the Agent’s Triangulation and cross check data from different sources (Source, Agent & Provider).

Finan

cing

Finan

cing Provision

Provision

ConsumptionConsumption

====

==

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Thank you!