Financial Management

Office of Financial Management
The Office of Financial Management (OFM) has the responsibility for the internal financial administration and accountability of the MoHSW fund, which includes, developing financial policy, accounting, and internal control system.

Financing the health sector is a critical input that requires GOL’s and donors’ full commitments.To maximize the resources available from all sources, a financing policy was formulated that establishes a mixed approach to mobilize resources that includes a sustainable level of government financing, more efficient use of donor support and potential alternative financing mechanisms. However, the implementation of this policy has just started. The Government of Liberia is committed to doing its part by progressively increasing the share of the national budget that goes to the health and social welfare sector as evidence in the allocation to health over the past eight years.

The national government budgetary allocations to the health sector continue to show a gradual increased over the past eight fiscal years (2006-2014). The health sector budget has increased from 10.9 million in fiscal year 2006/2007 to 53.6 million in fiscal year 2013/2014.Also, the Government has allocated 277.1 million to the Ministry of Health over the past eight fiscal years (2006-2014). The Ministry’s budget has increased by approximately US$ 42.7 million over the past eight fiscal years and however, this increment has not fulfilled the government’s commitment to the Abuja Declaration of 15% of National Budgetary allocation to the health sector as declared by African governments in 2000.

The per capita health expenditure is encouraging, although Liberia is distant from achieving the required target that will influence the attainment of the MDGs. In 2006, the per capita health expenditure was US$ 3.30 person compare to US$ 17.2 per person in 2014, excluding donors’ funds. Investments by the government and her partners have contributed to the improvement of the health sector indicators, especially MDGs 4.

The percent of the national budgetary allocation to health has not been stable in its progression. It increased from 8.4% in FY 2006/07 to 8.96% in 2007/08 and declined for two fiscal years (2008-2010) to below 8%. However, it increased from 8.4% in FY 2012/13 to 11.5% in FY 2013/14.

Over the years, there has been gradual increased in government’s allocation to the Ministry of Health and Social Welfare. However, the Ministry has never received what have been appropriated during the five years period. For example, in fiscal 2009/10 the amount of US$ 20.15 million was allocated for the Ministry by only US$ 13.32 million was disbursed by the Ministry of finance. The disparities between government allocation actual disbursements is partly attributed to the delay in the approval and disbursement of the National Budget and the bureaucracy associated with the processing of payments and release of quarterly allotments.

The Ministry received funds from various sources that include, Global Fund, UN agencies, Global Alliance for Vaccines and Immunization (GAVI), USAID, West African Health Organization, the European Union, Foundations, Bilateral and Multilateral Institutions among others.