Financial Management Report


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Financial Management Report

  1. 1. Financial Management Report
  2. 2. Periodic Progress Reports <ul><li>Projects typically produce 3 types of reports: </li></ul><ul><ul><li>“ ad hoc” </li></ul></ul><ul><ul><li>regular periodical progress reports </li></ul></ul><ul><ul><li>annual reports </li></ul></ul><ul><li>Fund-financed projects are required to submit to the Fund at regular intervals, not more than 6 months, periodic progress reports, FMR </li></ul><ul><li>FMR stands for Financial Monitoring Reports </li></ul>
  3. 3. Characteristics of FMR <ul><li>The distinguishing characteristics of FMR are: </li></ul><ul><ul><li>Distinction between project management (by Borrower) and project monitoring (by lender) </li></ul></ul><ul><ul><li>New emphasis on maximum reliance on borrower’s Accounting/reporting systems/format </li></ul></ul><ul><ul><li>Format, content, and frequency more flexible </li></ul></ul><ul><ul><li>Reflecting project size, sector, and complexity </li></ul></ul>
  4. 4. Guiding Principles of FMR <ul><li>The overall objective is to provide regular information that gives necessary fiduciary assurance to the Fund </li></ul><ul><li>FMR will be less detailed than the report prepared for project management </li></ul><ul><li>Borrower’s own system should be used as far as possible in producing FMRs   </li></ul>
  5. 5. Guiding Principles of FMR (cont.) <ul><li>The same structure of financial information should normally be used for project planning, monitoring reports and annual audited financial statements, and Implementation Completion Reports (ICRs)  </li></ul><ul><li>As far as possible, borrowers should not be required to provide the Fund with information already available to the Fund </li></ul><ul><li>The requirements for financial and procurement monitoring should, as far as possible, be aligned with other Fund requirements for project progress reporting and monitoring   </li></ul>
  6. 6. Guiding Principles of FMR (cont.) <ul><li>While the reports to be submitted to the Fund should meet certain minimum requirements, they should be flexible and customized to each project or where possible, to each country and/or sector </li></ul><ul><li>Monitoring expenditures in relation to physical progress is a key aspect of ensuring that the project is under proper financial control </li></ul><ul><li>Wherever possible, common reporting and monitoring arrangements should be agreed with other donors involved in the project </li></ul>
  7. 7. Structure of the FMR <ul><li>The FMR should normally include: </li></ul><ul><ul><li>       Financial reports </li></ul></ul><ul><ul><li>       Physical progress reports, and </li></ul></ul><ul><ul><li>       Procurement reports </li></ul></ul>
  8. 8. FMR – Financial Reports <ul><li>Financial reports should show: </li></ul><ul><li>Cash inflows and outflows for the period (e.g., quarter), and cumulatively for the project life </li></ul><ul><li>Expenditures should be reported according to project activities, not according to procurement/disbursement categories (although this may be reported as an addition) </li></ul>
  9. 9. Physical Progress Report <ul><li>Physical progress reports should link physical outputs or implementation progress to costs of achieving them </li></ul><ul><li>Indicators of physical progress and outputs should be selected during project preparation, stated in the Project Implementation Plan (PIP) </li></ul>
  10. 10. Procurement Report <ul><li>The procurement report: </li></ul><ul><li>shows the status of procurement of goods, works, services, and consultants </li></ul><ul><li>compares the actual procurement performance with the plan agreed with the Fund at negotiations or in a subsequent review </li></ul><ul><li>highlights specific problems (e.g., staffing or training needs) </li></ul>
  11. 11. Matters to be agreed at negotiations <ul><li>Explains deviations from plan, and proposes solutions to problems identified </li></ul><ul><li>Format, content, frequency, and currency of reports </li></ul><ul><li>Project outputs and other indicators for monitoring physical or other progress toward achieving project results        </li></ul><ul><li>How to deal with multiple implementation agencies, scattered project locations, and community-based project activities </li></ul>