Monitoring and evaluation systems areoften the least addressed component of project design, andimplementation. Yet, such systems have considerablepotential for enhancing the impact of projects, and theunderstanding of poverty reduction impacts. This noteaddresses what makes effective monitoring and evaluation,where both quantitative, and participatory methods areneeded to assess a project's impact on poverty. Itexamines the case of the Uganda Nutrition and EarlyChildhood Development Project, a process-driven, locallyprioritized program, being implemented by a network ofnongovernmental organizations, that motivates communities,and provide information to project participants. The projectrelies on systematic monitoring of inputs and outputs, and,community participation in planning, and monitoringfacilitates bottom-up feedback. The note further highlightsa randomized experimental design, i.e., a baseline andfollow-up surveys, that assess the impact of projectactivities, of communication and information, and ofgrassroots management training, and income generationactivities for community welfare. The benefits of proactivemonitoring and evaluation are that it enables timely inputsinto management decision making, and that the quantitativemethods used, are important determinants for assessing, andverifying a project's impact.