3. Financial Analysis Program is highly dependent on external Program is moderately dependent on (Product Facility and Program Consultancy) Financial Analysis and donor funding for the majority of its external funding. Sales revenues cover Program is only slightly dependent on components. Sales revenues are small and some of overall expenditures (40 to 70 external funding. revenues cover a high do little to offset the program’s percent); external funding covers other percentage of overall expenditures (more operational costs. SMO’s cost-accounting elements. Support may or may not be than 70 percent). External funding may be system allows for financial analysis of the directed to specific project areas, for directed to discrete elements of the overall social marketing program, but may example expanded distribution or generic program. not allow for analysis on a per-product BCC. basis. Comments/reason The UHMG Product Facility business unit is commercially independent and self-sustaining (see Profitability Analysis, for rating Appendix D), though many of its commercial tenders and 3PL accounts come from international donors. The Program Consultancy business unit is, by design, aimed at gaining contracts and awards from the donor community, as with many not-for-profit organizations. As long as donors dominate the health and social sector in Uganda, as they do UHMG will seek their ‘markets’ tenders, awards and contracts. 4. Institutional Analysis SMOs do not have adequate administrative SMO has adequate governance, SMO has excellent governance, Institutional and accounting systems to know their and internal-control systems. management, cost-accounting, and Analysis operating costs or cost-analysis capabilities There is adequate efficiency, but with area systems. It has strong leadership and are limited. for improvement. high level of efficiency. Indicators: Indicators: Indicators: Administrative and accounting systems Administrative and accounting systems Administrative and accounting systems allow for monitoring and tracking of allow for monitoring and tracking of allow for monitoring and tracking of costs by product costs by product costs by product Credit worthiness established
3. Financial Analysis Financial Analysis Program is highly dependent on external and donor funding for the majority of its components. Sales revenues are small and do little to offset the program’s operational costs. SMO’s cost-accounting system allows for financial analysis of the overall social marketing program, but may not allow for analysis on a per-product basis. Program is moderately dependent on external funding. Sales revenues cover some of overall expenditures (40 to 70 percent); external funding covers other elements. Support may or may not be directed to specific project areas, for example expanded distribution or generic BCC. (Product Facility and Program Consultancy) Program is only slightly dependent on external funding. revenues cover a high percentage of overall expenditures (more than 70 percent). External funding may be directed to discrete elements of the program. Comments/reason for rating The UHMG Product Facility business unit is commercially independent and self-sustaining (see Profitability Analysis, Appendix D), though many of its commercial tenders and 3PL accounts come from international donors. The Program Consultancy business unit is, by design, aimed at gaining contracts and awards from the donor community, as with many not-for-profit organizations. As long as donors dominate the health and social sector ‘markets’ in Uganda, as they do UHMG will seek their tenders, awards and contracts. 4. Institutional Analysis Institutional Analysis SMOs do not have adequate administrative and accounting systems to know their operating costs or cost-analysis capabilities are limited. Indicators: Administrative and accounting systems allow for monitoring and tracking of costs by product SMO has adequate governance, and internal-control systems. There is adequate efficiency, but with area for improvement. Indicators: Administrative and accounting systems allow for monitoring and tracking of costs by product Credit worthiness established SMO has excellent governance, management, cost-accounting, and systems. It has strong leadership and high level of efficiency. Indicators: Administrative and accounting systems allow for monitoring and tracking of costs by product
UHMG%20Case%20Study%20-%20Sustainability%20Continuum%20for%20Social%20Marketing%20-%2028Aug2013.docx