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Fm ws report


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Fm ws report

  1. 2. Background to the Workshop <ul><li>Objective of workshop </li></ul><ul><li>To upgrade fiduciary capacities & facilitate exchange of experiences & best practices in the implementation of projects </li></ul><ul><li>This was in response to requests by project implementers </li></ul><ul><li>Coverage </li></ul><ul><li>Fiduciary issues of loan administration, financial management, procurement, audit & accounting </li></ul><ul><li>Sharing of best practices from projects (BI, KE, MG, UG, ZM) to enable replication </li></ul><ul><li>Participation </li></ul><ul><li>Overwhelming! </li></ul><ul><li>128 staff from 14 countries, including staff from ministries, auditor general (SAI), projects, IFAD country offices & HQ (Rome) </li></ul>
  2. 3. Background to the IFAD ESA portfolio ESA Loan & DSF Grant Portfolio
  3. 4. Background to the IFAD ESA portfolio ESA Portfolio by type
  4. 5. Background to the IFAD ESA portfolio Disbursements 2009/10 - USD 121 million (36% increase)
  5. 6. Financial Management <ul><li>Accounting systems   </li></ul><ul><li>Computerization assists effective/ timely reporting </li></ul><ul><li>Reporting </li></ul><ul><li>Financial management reports : sources & uses of funds for period + cumulative by category + component, assets, commitments, inputs + outputs </li></ul><ul><li>Physical progress reports : link outputs to related costs </li></ul><ul><li>Procurement reports : compares actual with plan & status </li></ul><ul><li>Tips </li></ul><ul><li>Implementation manual - to be used as guide & reference </li></ul><ul><li>Regular back up and filing </li></ul>IFAD has a fiduciary role to ensure that its funds are used for the purpose for which intended
  6. 7. Annual Financial Statements <ul><li>Project Financial Statements include: </li></ul><ul><ul><li>Statement of sources & use of funds </li></ul></ul><ul><ul><li>Cash Flow Statement </li></ul></ul><ul><ul><li>Schedule of Withdrawal Applications </li></ul></ul><ul><ul><li>Statement of Special account & Reconciliation </li></ul></ul><ul><ul><li>Status of Funds/ Financing </li></ul></ul><ul><ul><li>Fixed assets schedule </li></ul></ul><ul><li>Accounts should be prepared in accordance with best practice - internationally accepted accounting principles (IPSAS or IFRS), using cash or accruals basis </li></ul><ul><li>National systems to be used where possible </li></ul>
  7. 8. Audit <ul><li>Purpose: </li></ul><ul><li>Provide accountability, verify compliance & make recommendations </li></ul><ul><li>Key points:   </li></ul><ul><li>Audit can be conducted by Supreme Audit Institution or private audit firm approved by IFAD </li></ul><ul><li>Audit report to be submitted within 6 months of fiscal year end </li></ul><ul><li>3 Audit opinions to be provided on the Financial statements, the Special Account & Statements of Expenditure </li></ul><ul><li>To include a management letter with details of weaknesses in internal controls and non compliance </li></ul><ul><li>Failure to submit within 180 days after due date or unsatisfactory report will lead to suspension of funding </li></ul>
  8. 9. Background to the IFAD ESA portfolio Assessment of 41 Audit Reports received: 1 July 2009 - 30 June 2010
  9. 10. Procurement <ul><li>Purpose: </li></ul><ul><li>To establish an effective procurement system that leads to improved procurement performance </li></ul><ul><li>This can be achieved by: </li></ul><ul><ul><li>Preparing a procurement plan before start of financial year & submit to IFAD for No-objection </li></ul></ul><ul><ul><li>Finances to be used for only items in the procurement plan & provisions of financing agreement </li></ul></ul><ul><ul><li>IFAD procurement guidelines to be followed & all steps adhered to </li></ul></ul><ul><ul><li>Plan in advance - consider whether prior or post review applies & act accordingly </li></ul></ul><ul><ul><li>Contract management is key </li></ul></ul>
  10. 11. Other areas discussed <ul><li>Annual work plans and budgets </li></ul><ul><ul><li>Critical setting of AWPB to ensure milestones met </li></ul></ul><ul><ul><li>Monitoring to ensure steady progress & performance </li></ul></ul><ul><ul><li>Value for money leads to higher impact from resources </li></ul></ul><ul><ul><li>Ensure adequate cashflows + anticipates gaps by planning </li></ul></ul><ul><li>Loan administration </li></ul><ul><ul><li>Financing Agreement/ LTB – critical documents </li></ul></ul><ul><ul><li>Special account reconciliations, Exchange rates </li></ul></ul><ul><ul><li>Loan closure procedures </li></ul></ul><ul><li>Challenges faced by particular projects in implementation </li></ul>
  11. 12. FM Tools & Resources <ul><li>FM&GG Internet site: </li></ul><ul><li>English : </li></ul><ul><li>French: </li></ul><ul><li>Withdrawal Application Tracking System (WATS) </li></ul><ul><li> </li></ul><ul><li>Group PC/ Accountants mailing lists – updated names to </li></ul><ul><li>2010 </li></ul><ul><li>Revised Procurement guidelines </li></ul><ul><li>ARTS (Audit Report Tracking System) </li></ul><ul><li>2010/11 </li></ul><ul><li>Regional FM resource packs </li></ul><ul><li>Revised Loan Admin procedures </li></ul><ul><li>Revised Audit Guidelines </li></ul><ul><li>2012 </li></ul><ul><li>New Loans & Grants system </li></ul>
  12. 13. Key success factors <ul><li>Project management – single most important determinant of project implementation results </li></ul><ul><li>FM Workshop test highest results </li></ul><ul><li>Farida Mukungu (CAIIP, Uganda) </li></ul><ul><li>Randrianarimanana Mamitiana (Ad2M, Madagascar) </li></ul><ul><li>Zaki K Juma (ASSP/ASDP-L, Zanzibar) </li></ul><ul><li>Clear correlation between projects with high fiduciary ratings and overall implementation progress </li></ul><ul><li>2010 Portfolio performance review – highest fiduciary ratings </li></ul>
  13. 14. Fiduciary best practices <ul><li>Centralised country control unit </li></ul><ul><li>Use of external services firm </li></ul><ul><li>Additional missions and support </li></ul><ul><li>Internal auditor </li></ul><ul><li>Country finance & procurement working group </li></ul><ul><li>Standardised country rules, procedures, training </li></ul><ul><li>Review of authorised allocations & thresholds </li></ul><ul><li>Proactive staff to accelerate procurement processes </li></ul><ul><li>Reliable computerised financial systems </li></ul><ul><li>Regular (quarterly) reporting </li></ul>
  14. 15. What next? <ul><li>Lessons learned </li></ul><ul><li>Better efficiency + effectiveness in fiduciary matters = increased implementation results </li></ul><ul><li>Many best practice examples exist in IFAD projects </li></ul><ul><li>Greater exchange of experiences should occur </li></ul><ul><li>Make use of IFAD tools & resources </li></ul><ul><li>Future FM workshops </li></ul><ul><li>When, where, how often, how to finance? </li></ul>