3.

4 MONITORING AND REPORTING

PROJECT RESULTS AND EXPENDITURE

Block 3 - How the humanitarian sector works

Module 4 - Monitoring and reporting project results and expenditure

 3.4 Monitoring and reporting project results and expenditure

Introduction

Hi, I'm Jaime and I am involved in monitoring in cooperation and development projects.
Monitoring, Evaluation, Review, Audits… You will often hear about these terms. They are all
forms of assessment, but they are different tools, each with their own specific functions.
During the project implementation it is essential to check that everything is on track and that
the project is progressing well in terms of expenditure, resource use, implementation of
activities, delivery of results and the management of risks. This is achieved through
monitoring, an essential task to achieve efficient and effective performance of a project.

Monitoring, review and reporting are core management responsibilities, which involve the
collection, analysis, communication and use of information on the physical and financial
progress of the project and the achievement of results.

The Project Manager must keep track of how the project is progressing in terms of
expenditure, resource use, implementation of activities, delivery of results and the
management of risks. This is achieved through monitoring, which is the systematic and
continuous collection, analysis and use of information to support effective decision-making.

Thus, the purpose of monitoring is to achieve efficient and effective

performance of a project.

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 3.4 Monitoring and reporting project results and expenditure

Monitoring is an internal management responsibility, although it may be complemented

with ‘external’ monitoring inputs. These external inputs can be useful in providing an
impartial verification of results, additional technical advice and a ‘big-picture’ view for
senior management.

The objectives of the project internal monitoring are...

giving to the Project Managers and to the project staff the necessary
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information for day to day decision-making;

collecting all necessary information for the Organisation’s internal reports

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and communication;

collecting all information required by the donor and to assure a complete

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and on time reporting;

giving to the stakeholders a clear information about the Organisation's

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work.

Normally, internal monitoring is provided by personnel already working on the

project. Nonetheless, particularly in complex projects spread out in a large
territory, the necessary time devoted to a proper internal monitoring is often
underestimated, risking provoking excessive workload on the one hand, and a
decrease of monitoring efficacy on the other hand.

Foreseeing the human and material resources – and the correlated costs – necessary for carrying out the internal

monitoring is thus fundamental, and must be carefully done before submitting the proposal.

- Let’s see how to ensure proper

monitoring and review in order to also be able to prepare

informative reports, as requested by the donors.

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 3.4 Monitoring and reporting project results and expenditure

Monitoring and other assessments: what are the

differences?

Let’s see more about these tools and their specificities.

Monitoring is the tool for continuous steering and decision-making to confirm that the
project is doing things right.
Monitoring can be defined as the ongoing process by which stakeholders obtain regular
feedback on the progress being made towards achieving their results and objectives. It
involves the systematic and continuous collection of data to be used for further analysis
(review and evaluation) and for informed decision-making.

In other words, monitoring means asking ourselves over and over again...

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 3.4 Monitoring and reporting project results and expenditure

Where are we?

Are we on track?

Do we have to accelerate or slow down?

Which changes in the context might

signi cantly in uence the project?

Which corrections do we need to make?

Monitoring helps us to stay on track, keep in touch with the reality of the project
and its context and helps to manage risks. Over the recent years, monitoring has
shifted its focus from controlling project progress and results to participative
learning processes. It means that stakeholders are involved in a collaborative
approach for measuring, recording, collecting and processing. Through this
approach, monitoring and evaluation can empower the actors and involve them
actively in the project.

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 3.4 Monitoring and reporting project results and expenditure

Evaluation is a tool, which is applied at specific moments, such as in

the middle or at the end of a phase or a project.

Evaluation aims at assessing the relevance, efficiency, effectiveness and sustainability of the Action. It
is a rigorous and independent assessment of either completed or ongoing activities to determine the
extent to which they are achieving / have achieved stated objectives and contributing to decision
making.

So, we can say that while monitoring provides real-time information required by management,
evaluation provides a more in-depth assessment. Evaluation draws heavily on data generated through
monitoring during the programme and project cycle, including, for example, baseline data, information
on the programme or project implementation process and result measurement.

For more information about Project Cycle Management see module B3.1: Introduction to
Humanitarian Project Cycle management.

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 3.4 Monitoring and reporting project results and expenditure

Regular reviews provide the opportunity for Project Managers and

other key stakeholders to further analyse information collected
through monitoring, reflect on the implications, make informed
decisions and take appropriate management action to support
effective implementation.

The main purpose of reviews is to share information, make collective

decisions and re-plan the forward programme as appropriate. Regular
reviews may be conducted at different levels within the project management
structure (i.e. at field level or at HQ), at different times and with varying
frequency. However, the main point is that they should be regular (pre-
planned) and they should have a clear agenda and structure.

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 3.4 Monitoring and reporting project results and expenditure

An audit is an independent examination of the project, and in particular of its

financial information. It can be distinguished from monitoring, regular review
and evaluation by:

its objectives (to provide independent assurance);

its scope (financial focus or focus on the efficiency, economy and

effectiveness of activities);

those involved (qualified independent auditors); and

the users of the results (the European Commission and other

donors, partner country authorities and senior project managers)

Monitoring is:

 a tool for continuous steering and decision-making to confirm that

the project is doing things right.

 a tool, which is applied at specific moments, such as in the middle

or at the end of a phase or a project.

 a tool that outlines the key features that lead to a project achieving

its goal

 a tool for continuous steering and decision-making to

confirm that the project is doing things right.

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 3.4 Monitoring and reporting project results and expenditure

L E T ’S FO C U S O N M O NI TO R I NG

Introduction

A monitoring system is not simply a means of collecting information. It must be a communication

system, in which information flows in different directions between all people involved. It can be
considered an “early warning system”, which allows for timely and appropriate intervention if a project
is not adhering to the plan.

Monitoring systems and procedures should provide relevant information

to the right people at the right time, to help them make informed
decisions. Monitoring should highlight strengths and weaknesses in
project implementation and enable responsible personnel to deal with
problems, improve performance, build on successes and adapt to
changing circumstances.

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 3.4 Monitoring and reporting project results and expenditure

We can say that there are some similarities between

driving a car and managing projects. Cars have

control instruments like the speedometer, cooling

water thermometer or the fuel gauge. In projects,

indicators have the same function. They help to

control the current status and indicate how we are

progressing.

For instance, when we drive on a highway, from time to time we check the
speedometer to make sure we are not exceeding the speed limit and thereby risk
getting a speeding fine. Once we reach the desired speed we ease off the
accelerator. When we are driving behinda car that suddenly slows down, we brake
without looking at the speedometer, because we can see that the distance to the
car in front of us is decreasing rapidly.

As decision-makers at In fragile contexts the monitoring

operational or strategic levels
we want our monitoring system
to inform us timely and in a
user-friendly format about any
qualitative and quantitative
changes that call for decisions
about corrective measures.
of fast-changing parameters is
becoming increasingly important
as an early warning system. We
have to observe the situation at
shorter intervals and take even
small “deviations” and incidents
very seriously.

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 3.4 Monitoring and reporting project results and expenditure

Monitoring should focus on collecting and analysing information on:

Physical progress (input provision, activities undertaken and

results delivered) and the quality of process (i.e. stakeholder
participation and local capacity building);

Financial progress (budget and expenditure);

The preliminary response by target groups to project activities (i.e.

use of services or facilities and changes in knowledge, attitudes or
practices);

Reasons for any unexpected or adverse response by target groups,

and what remedial action can be taken.

Key steps in developing a project-based monitoring

system

There are six main stages that need to be covered when developing a project-
based monitoring system. These are:

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 3.4 Monitoring and reporting project results and expenditure

Clarify project scope: who are involved stakeholders? Which are the capacities
of local institutions? Which are the project objectives and available resources?
These elements should have been identified at the proposal design phase.

Understand the nature of organisational relationships, management

arrangements and capacity constraints.
These elements should have been identified at the proposal design phase.

Determine what information are needed by Project Managers and other key
stakeholders:
What are the results that the project should achieve and be accountable for?
Which information will we need for making decisions and at what point in
time?

Review existing information collection

As appropriate, develop and document monitoring system guidelines and formats

defining:
a. Who is responsible for data collection and processing?
b. How will we present the data?
c. How long will these tasks take?
d. What material resources (e.g. vehicles, measuring devices, laptops, etc.)
are
required?
e. What support is required from the people involved for participatory methods?
f. What external support (e.g. specific technical expertise) needs to be
mobilised?

Provide training and resources to support monitoring systems development

and implementation.

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 3.4 Monitoring and reporting project results and expenditure

The tangible result of this process consists of a number of tables, in which each
indicator, its rationale, the collection method, human, materials and financial
resources, timing and responsibility are specified.

See an example of data collection worksheet:

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 3.4 Monitoring and reporting project results and expenditure

Use of data and information for monitoring

Monitoring is more than just measuring and collecting data, it

includes the interpretation of the data and drawing conclusions.

Let’s see how to collect and manage this information following

these steps:

Main step: Selection of information to be collected

Tips: some recommendations:

In this first phase of the monitoring activity, it is useful to remember that a small system
that works is better than a big system that doesn’t! It is necessary to collect useful
information with reasonable quality. The perception of people who are affected by the
work is often more useful than a large amount of data;

The project manager must verify the quality of the indicators and, in case they are not
exhaustive to monitor the project activities, s/he can add new ones with a measurement
for each of them;

Both quantitative and qualitative indicators can be selected and included in the project
monitoring system.

It is useful to include also impact indicators which estimate what “long term
effects” the project is having on the target population.

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 3.4 Monitoring and reporting project results and expenditure

Main step: The data collection

Tips: possible methods for data collection are:

adequate forms to collect data regularly;

checklists to record observations during field visit;

diaries to record activities and qualitative information;

minutes made during periodic meetings to collect quantitative and

qualitative information.

Main step: The data analysis and the use of information

Tips: the “pre-defined” indicators included in the LogFrame enable the project manager
to see at each level (overall objective, specific objective, results) if the project achieved
what was expected and enable her/him to measure the performance. For this reason, the
choice of realistic and measurable indicators in the project proposal is an essential
factor for good monitoring. Different approaches are usually required for the analysis of
quantitative and qualitative data. Quantitative data involve numbers that can be
subjected to various forms of statistical analysis. For instance:

simple calculations; total; average; proportion; frequency; other statistical functions.

Qualitative data usually provide information on people’s views, opinions or

observation and can be analysed through:

meetings; diagrams; maps.

An appropriate balance between the two is often the best.

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 3.4 Monitoring and reporting project results and expenditure

R E PO R T I NG O N PR O J E C T R E S U LT S A ND E X PE NDI T U R E

Introduction

Reporting is an important part of most monitoring systems because it often

provides the link between data collection and analysis on the one hand, and
data use on the other. It is also one of the main management obligations when
working within the European Union or other donors, as organisations are
requested to provide them with full information on the implementation of the
project.

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 3.4 Monitoring and reporting project results and expenditure

The purpose of reporting is to provide the donor with full information on the
implementation of the project that it has financed, to demonstrate that the project
has been implemented in compliance with the provisions established by the
Agreement/Contract, and to determine which costs are eligible for funding.

Usually every report should

relate to the whole project,
regardless of whether it is
fully or partially funded by
one donor or more than one.

It should ensure comparability

with the original proposal,
while taking account of any
modifications that have
occurred.

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 3.4 Monitoring and reporting project results and expenditure

There are some basic requirements that should be kept in mind,

when preparing reports. Reports must:
focus on progress towards achieving results (results and purpose in
the LogFrame), and not simply list activities undertaken and inputs
provided;

compare progress against plan, so that an assessment of

performance can be made;

briefly explain deviations from plan and highlight remedial actions

taken or required (recommendations);

provide detailed information on costs incurred vs the approved

budget;

be clear and concise so that the information is easily accessed and

understood.

The purpose of reporting is:

 identifying project ideas that are in line with the development

objectives expressed in the programming phase.

 providing the donor with full information on the implementation

of the project, to demonstrate that it has been implemented in

compliance with the established provisions.

 identifying internal strengths and weaknesses of a group or

organisation

 providing the donor with full information on the implementation of

the project, to demonstrate that it has been implemented in
compliance with the established provisions.

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 3.4 Monitoring and reporting project results and expenditure

Different types of reports

Project implementing organisations and their project managers can

be required to provide the following types of reports:

Inception report
An inception report should usually be produced within 1-6
months after the launch of the project (namely, once the funding

has been released and key project staff is in place). It should

provide the opportunity for Project Managers to review the

project design in consultation with involved stakeholders and

update the first work plan to ensure its feasibility.

This moment is fundamental to ensure the ownership of the project by all

involved stakeholders, meaning that all partners, donors and local authorities
are equally committed to the successful implementation of the project.

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 3.4 Monitoring and reporting project results and expenditure

Progress reports / Annual reports

Progress reports must be produced on a regular basis, as agreed with the donor.

Progress reports are often requested on an annual basis, but in some cases must be

prepared more frequently. Annual reports should focus on documenting progress

towards delivering planned results and achieving the project purpose.

The annual report should not only focus on what the

project itself has achieved or not achieved, but also
on any significant changes in the ‘external’
environment.

- These types of information should

usually be included in the progress
reports:

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 3.4 Monitoring and reporting project results and expenditure

and a summary of the project or programme.

any significant changes in the internal and external environment that have affected the
project or programme over the past period.

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 3.4 Monitoring and reporting project results and expenditure

major activities carried out over the previous period, a note on any divergence from
existing plans and budgets, and a description of how plans and budgets have changed or
might change.

and/or indicators and any other major changes, positive or negative, planned or unplanned,
resulting from the project or programme to date. As above, this should also be supplemented by
evidence. 21
 3.4 Monitoring and reporting project results and expenditure

an analysis of any changes, outlining their significance and likely sustainability. This could
also include a description of what needs to change based on progress made to date.

identification of key lessons learned to date that might be useful for the project or programme
in the future or for wider stakeholders. These might be lessons spontaneously arising out of
project or programme work, or the result of dedicated work to answer defined learning
questions. 22
 3.4 Monitoring and reporting project results and expenditure

a report about any predicted risks and assumptions, together with any actions taken to
mitigate them. This section could also cover any unforeseen problems that have arisen,
and an explanation of how they have been dealt with (if at all).

a description of key internal project or programme processes that have affected the work
carried out. This could include many kinds of factors from logistics, equipment and personnel
through to compliance and contracts. 23
 3.4 Monitoring and reporting project results and expenditure

any issues of special interest to the project or programme, such as the participation of
different groups, gender relations, issues around capacity development, relations with
partners, beneficiary feedback or complaints, etc.

based on the previous sections, an outline of any suggested changes to plans or budgets,
and an outline of any recommendations for the future.
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 3.4 Monitoring and reporting project results and expenditure

an update on the project/programme’s key planning, monitoring, evaluation and reporting

activities to date, together with recommendations for change.

some donors request to provide a table to report all expenditure incurred during the
annual period and show possible changes needed against the approved budget.
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 3.4 Monitoring and reporting project results and expenditure

Possible annexes:

- updates on a logical framework and workplans;

- photographs, media reports or videos;

- attached reports, case studies or stories of change;

- transcripts of interviews or results of surveys;

- financial report.

The specific sub-headings and the quantity of information provided should be

adapted to suit the scope and scale of the project, and to existing monitoring
and reporting systems applied by the donor. In some case, pre-established
format must be used to draft progress reports.

A final report

A final report is required at the end of the project period. It may be the last
opportunity to document and comment on overall achievements against the
original plan, prospects for sustainability of benefits, highlight lessons learned
and make recommendations on any follow-up actions required.

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 3.4 Monitoring and reporting project results and expenditure

A final report always includes:

A narrative part to provide

the final overview of the
results achieved, lessons
learned, consideration on
the impact and
sustainability of the project.

A financial report, with

overview of expenditure
incurred and in some case
explanation on the use of
resources, justification of
possible changes compared
to the approved budget, etc.

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 3.4 Monitoring and reporting project results and expenditure

Some Do’s and Don’ts of Reporting

DO

- Use donor’s format and instructions to draft your reports;

- Make sure that reports are as accurate as possible. Trust

is easily lost if you over claim or ignore errors or mistakes;

- Ensure that reports are written in concise, clear language;

- Make sure that your report is well-structured and has a

logical flow;

- Make sure that any results you report are backed up with
evidence, and with

- @clear description of how your project or programme

contributed to the change(s);

- Ensure your report is presented nicely, and contains

suitable charts and pictures, if appropriate;

- Focus on the main objectives of the project are being/

have been achieved and on the concrete expected
impacts.

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 3.4 Monitoring and reporting project results and expenditure

DON'T

- Change the donor’s reporting template format and ignore the

related instructions;

-Write too much;

-Get obsessed with reporting about activities and forget the changes
that have occurred as a result. Donors are usually more interested

in change than long lists of activities;

- Assume that your audience will automatically know acronyms or

jargon that your project or programme uses all the time;

- Write your report at the last minute, as this will cut down on the

possibility for reflection and analysis;

- Forget to put your report through a grammar and spell check

before finalising it.

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 3.4 Monitoring and reporting project results and expenditure

Recap

In this module we have discovered the importance of monitoring, which is a part of project implementation
that helps to inform the stakeholders of the progress made and the challenges faced. It gives early signals
of the need for course correction and helps in taking important management decisions on time. Then we
have seen reporting, a periodic, first-hand account of the project progress. A useful report is the one that is
based on credible and substantive inputs from the monitoring system. The periodicity of reporting depends

on the nature of the data as well as on the commitment made to the donor agencies. Project managers
should refer back to the agreed project indicators when monitoring project performances and preparing
reports.

Congratulations!

in this module we have learnt...

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 3.4 Monitoring and reporting project results and expenditure

that monitoring, review and reporting are core management responsibilities,

which involve the collection, analysis, communication and use of
information on the physical and financial progress of the project and the
achievement of results;

what are the differences between the different types of assessments;

what are the key elements of monitoring;

what are the key steps in developing a project-based monitoring system;

what implies reporting on project results and expenditures and the different
types of report.

You can download the copyright of the images on the course website

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