Third-party monitoring has proven to be an efficient and effective tool, which helps to provide an independent perspective on project performance by an independent organization. However, the process of undertaking such monitoring activities does not come on a silver platter, as it demands huge financial backing.
It is for this reason that a budget is mentioned in the submission of proposals by these third-party organizations. It is a prediction of expenses and serves as a plan for funders on how the organization will operate the project, spend the money in a given period and where their money will go. (Science Direct, 2019)
Accountability and Transparency
To begin with, TPM assignment ensures accountability and transparency. Mentioning TPM budgets guarantees where and how funds are utilized during assignments. The reason is that donors, clients, and funders want to know how their money is going to be spent. This includes the areas of operations, administrative, logistics, and more. This makes TPM organizations responsible for their actions for every decision taken with funds for every assignment undertaken. In the end, trust is built between donors and funders and the TPM implementation organizations.
Secondly, it makes the practical implementation of assignments smoother. Here we are talking about how the execution of a project becomes easier because there are enough funds to cover it. It safeguards how an assignment can be completed within a stipulated time with the right expert for the target population, considering having enough funds to cover that. This ensures the quality of the assignments and the huge impact they will have on international development.
Putra (2008) reveals that proper budgetary planning can also ensure that resources are allocated productively, competitively, and profitably, resulting in cost reductions.
Different TPM organisations keep springing up every time. When submitting a proposal, they will need to include the reports and works of previous work as references. Citing an assignment budget provides a pedestal for “new and amateur” TPM organisations to follow. This ensures that certain standards are followed and a form of excellence is achieved during assignments.
Aside from the importance of the benefits of revealing TPM assignment budgets, it has its downfalls.
A False Good Idea?
Due to unforeseen circumstances beyond the control of TPM organizations, mentioning the budget may not reflect what is on the ground. Conflicts, flooding, tsunamis, and the general increase in goods and services may have a toll on the budget. This affects the implementing organization negatively in terms of operations and logistics. In the end, the quality and value of the assignment are distorted.
There is a tendency for budgets to be inflated by implementing organizations. This is due to the fact that most of these entities are business-oriented. In their quest to reap profit from the services they render and to keep the business going, they increase items in the budget. This, in reality, is a small portion of the bigger budget.
Moreover, the number of TPM organizations is increasing, and existing ones are expanding. This has brought competitions into the system. In order for new organisations to secure contracts, they tend to reduce their budgets in the hope of being selected. This, however, does not augur well as such organisations perform below the mandate given to them. The effect of this can bePos poor work done.
 How to plan and write a budget for research grant proposal? At: https://www.sciencedirect.com/science/article/pii/S0975947617301328#:~:text=Budget%20plan%20is%20a%20key,where%20their%20money%20will%20go.
About the Author
Philip Afran Gaisie is a Junior Officer in Trust’s Third-Party Monitoring Department. Learn more about Philip on LinkedIn.