8.6 Financial Tracking
  • 15 Dec 2023
  • 4 Minutes to read
  • Dark

8.6 Financial Tracking

  • Dark

Article summary

Monitoring FSC Funding Status: The financial requirements of the FSC are outlined in the HRP . The FSC coordination team should track contributions and available resources against these requirements in order to identify gaps and, with the engagement of Cluster partners, work towards mobilising resources to address these gaps. 

This means monitoring the financial status of the cluster (i.e. committed and allocated funding against HRP requirements) on OCHA’s Financial Tracking Service (FTS).  

The Coordinator (with IMO support) should: 

  • Review information in the FTS (see below) in terms of needs and available funds. 
  • Compile and update financial needs and resources among FSC partners. 

Financial Tracking Service: The Financial Tracking Service (FTS) is an online database managed by OCHA that consolidates information on humanitarian funding needs and international contributions (both cash and in-kind contributions). It records and tracks contributions against the HRP (and Flash Appeal) and helps to manage humanitarian donations.  

FTS collects and continuously updates data on: 

  • Donor contributions (reported by government donors and private organizations). 
  • Humanitarian aid received (reported by recipient agencies and implementing partners – for FSC partners, it is typically completed on a regular basis). 

The goal of FTS is to improve resource allocation decisions and advocacy for resource mobilisation by clearly indicating to what extent people in crisis receive humanitarian aid, and at what proportion compared to needs. By highlighting who is funding what and where (a search function permits searches by donor, sector, country and recipient agency), FTS contributes to accountability and transparency for humanitarian action by focusing not only on contributions but also on the allocation and use of funds.  

FTS helps the FSC team identify high priority funding gaps quickly and efficiently by providing an overview of: 

  • FSC funding requirements. 
  • FSC funding received / committed from different sources. 
  • FSC funding gaps for the FSC.

What is the Role of the Coordinator? It is the responsibility of the Coordinator (with IMO support) to regularly monitor the FSC funding status and to have a clear picture of the overall financial status of the Cluster (and of each of the FSC partners where possible) by monitoring contributions against the Flash Appeal and HRP s on FTS.  

The Coordinator should be able to provide a clear overview of: 

  • Up to date funding levels, and
  • Under-funded food security areas, populations, geographical locations, projects and organisations (ensuring funding gaps are mapped where relevant). The information in FTS is not disaggregated at sub-national level. The funding gap can, to some extent, be estimated by the number of people reached; however, some caution must be observed as the two figures not always match.  

This will strengthen advocacy and help the Coordinator lobby donors to allocate additional resources where there are funding gaps. In case of critical funding gaps that need urgent action, he/she should alert FAO /WFP (gFSC) and the RC/HC and HCT

FSC Partners: Partners who are involved in the HRP are responsible for updating the FTS system themselves. The Coordinator should strongly encourage all FSC partners to provide up-to-date information on contributions to FTS. He/she should make the added value clear to FSC partners – i.e. failure to keep FTS updated may impact future pooled funding allocations and weaken advocacy messages.  

In case of HRP project based approach (see 9.5.2), FSC partners who are not part of the HRP (usually the Red Cross movement and the government) should also be approached to share information on financial resources, (as well as information on activities and number of people), to ensure that the Coordinator can reflect all financial aspects of the FSC response and avoid overlaps.   

Note: In terms of coordination, no distinction should be made between HRP partners and non HRP partners. 

CERF and CBPF: CERF and CBPF contributions are not reported to the FTS by recipient organisations because the information is directly forwarded by the CERF Secretariat, UNDP and OCHA

TIP: FTS does not always fully represent the financial status of the sectors. In some countries, FSC Coordinators may have their own separate system to cross check with FTS. In case of a significant discrepancy between what is reported on FTS and what can be observed at field level (the level of activities implemented), the Coordinator can conduct a 3/4W on funding. Check with GST for examples.   

Support: Contact the GST for support. OCHA may also be able to assist on FTS.  

Resources: See more, on the OCHA website, about FTS and how to use it here and see more on who reports to FTS here

Was this article helpful?