FINANCIAL MANAGEMENT & GOOD GOVERNANCE IN PF

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9 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

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FINANCIAL MANAGEMENT &
GOOD GOVERNANCE IN PF

Ruth Farrant

Financial Management Officer, PF


PF REGIONAL WORKSHOP. UGANDA

NOVEMBER 2008

Setting the Context: IFAD’s New Operating Model

Country
Strateg
y

New corporate processes



Direct supervision



Country presence

Underpinning the New Operating Model:
Financial Management and Good Governance



“The issue of good governance and

capacity
-
building is what we believe

lies at the core of all Africa’s

problems”

Commission for Africa, 2005


Good financial management means that funds are used:


solely for the purpose intended and results
-
orientated


in accordance with the AWPB


in conformity with administrative, technical, financial,
environmental, agricultural and rural development
practices and good governance


Financial Management (FM) &

Good Governance in PF

FM work involves 2 approaches:

(1)

assurance that IFAD funds are being used
for the intended purposes


(thro’ reliable internal systems & direct supervision)

(2) assistance to governments to improve FM
capacities



FM is an integral part of the development process to
achieve the Millenium Development Goals


One of the goals of the Paris Declaration is to ensure
greater reliance on public financial management
systems


PF works with borrowers to use national systems
where possible
(e.g. reporting/ procurement/ budget)

Financial Management (FM) through

Direct Supervision

Core elements of Direct Supervision



Implementation support



Loan administration



Procurement



Audit


These elements are intended to provide
reasonable assurance

that the funds
provided by IFAD are used appropriately,
efficiently and only for the intended
purpose

Financial Management (FM) through

Direct Supervision

Loan administration


Managed through PF Nairobi office


Delegated authority of CPMs to certify


payments & provide procurement N
-
Os


Regular contact with project thro’ (supervision)
missions
(objective: 2 x year)


Timeliness of funds flows depends directly on
accuracy & completeness of submissions


Statistical monitoring of WAs by PF


Financial Management (FM) through

Direct Supervision

Procurement review


Responsibility for project/ programme
implementation including procurement


lies with the Government


Funds should be used for purposes for which the
financing was provided, with due attention to
economy, efficiency and social equity


IFAD provides no
-
objection (N
-
O) based on
evidence provided


Expenditures should be reimbursed even
subsequent to N
-
O if later found ineligible

Financial Management (FM) through

Direct Supervision

Audit


Provides accountability and credibility


Financial statements prepared per


IFRS/ IPSAS accounting standards


National standards can + should be used if meet
minimum disclosures


External auditor


independent, uses
ISA auditing
standards


Annual audit report due 6 months after year end


Annual TOR should be prepared for auditor


Financial Management (FM) through

Direct Supervision

Audit (continued)


3 audit opinions:



Financial statements


Use of Special account


Statement of WAs


Management letter on internal controls & systems


Suspension of disbursements may occur

if:


Untimely submission of reports


Non compliance with IFAD standards
(e.g. qualified
accounts without satisfactory action plan)


Governance and Corruption

Governance


Quality of governance is critical, contributing to
economic & social development


Improving local governance implies:


delivering basic services


strengthening capacities for


decision
-
making


resource management


implementing developmental initiatives


Monitoring of the quality of governance:


across countries


within individual countries over time

Governance and Corruption

Corruption


IFAD has a zero tolerance against fraud, corruption &
misconduct


Most countries in which IFAD operates


have poor governance/corruption records


Responsibility for use of funds rests


with the Government


Systematic checks/ controls may be built in at design
+/or implementation stage of a project
(e.g. low
procurement thresholds/ FM advisors)
,
in addition to
normal IFAD procedures

(e.g. audit)

Governance and Corruption

Corruption (continued)


Government is responsible for
following up in the first instance


IFAD may declare mis
-
procurement/
ineligible expenditures as a result of
fiduciary responsibilities, also if in
doubt


Specific cases of suspected fraudulent/
corrupt practices are referred to
IFAD’s Office of Audit and Oversight,
which may collaborate if required


(rare cases)


FM Tools & Resources

PF FM&GG Internet site




FM Tools & Resources

Newcomers and not so new…..


PF FM&GG Internet site


(address
http://www.ifad.org/operations/pf/finance



Userid=community Password=ifadcommunity)


Withdrawal Application Tracking System (WATS)


(address

http://open.ifad.org/wats/login
)


Group E
-
mails
(PC/ M&E/ Accountants)


FM specialist staff/ CPMs


Coming soon…..


New General Conditions
(2009?)


New Loans & Grants System
(2010?)


FM Tips

Do’s


National systems


Compliance


Quality


Timeliness


Use PF FM tools


Send updated E
-
mail
addresses to


r.farrant@ifad.org/

r.getachew@ifad.org

Don’t’s

o
Be afraid to ask PF!

Financial Management (FM) &

Good Governance in PF




Questions and Answers

?