Eastern and Southern Regional Financial Management ... - FIDAfrique

honeydewscreenManagement

Nov 9, 2013 (3 years and 11 months ago)

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Background to the Workshop

Objective

of

workshop


To

upgrade

fiduciary

capacities

&

facilitate

exchange

of

experiences

&

best

practices

in

the

implementation

of

projects



This

was

in

response

to

requests

by

project

implementers


Coverage


Fiduciary

issues

of

loan

administration,

financial

management,

procurement,

audit

&

accounting


Sharing

of

best

practices

from

projects

(BI,

KE,

MG,

UG,

ZM)

to

enable

replication


Participation


Overwhelming!


128

staff

from

14

countries,

including

staff

from

ministries,

auditor

general

(SAI),

projects,

IFAD

country

offices

&

HQ

(Rome)


2

Background to the IFAD ESA portfolio

3

Ethiopia 13%
Zambia 4%
Angola 1%
Uganda 17%
Tanzania12%
Swaziland 2%
Rwanda 8%
Mozambique
9%
Mauritius 1%
Malawi 3%
Madagascar
7%
Lesotho 2%
Kenya 8%
Comoros 0%
Eritrea 4%
Burundi 9%
ESA Loan & DSF Grant Portfolio

Background to the IFAD ESA portfolio

4

ESA Portfolio by type



O
ngoing projects
/
programmes

Project Type

No

Current Amount
(USD '000)

%

Agricultural Development

18

270 225

25%

Rural Development

13

341 954

34%

Financial Services

7

112 367

10%

Marketing

7

161 869

15%

Livestock

3

44 716

4%

Research ext
ension/training

2

44 993

6%

Irrigation

2

54 955

5%

Fisheries

1

12 579

1%

Total

53

1 043 658

100%


Background to the IFAD ESA portfolio

5


Disbursements

2009
/
10

-

USD

121

million

(
36
%

increase)



WAs processed

2009/10
Total

2008/09
Total

IFAD Loans + DSF

484

245


IFAD Grants

84

34


UNOPS Loans + grants

-

270

WB

55

56

Total

623

605


Average USD value of WAs

245k

158k


Total days processing

27

53


Financial Management




Accounting systems




Computerization assists effective/ timely reporting

Reporting


Financial management reports
: sources & uses of funds
for period + cumulative by category + component, assets,
commitments, inputs + outputs


Physical progress reports
: link outputs to related costs


Procurement reports
: compares actual with plan & status


Tips


Implementation manual

-

to be used as guide & reference


Regular
back up

and
filing

6

IFAD has a fiduciary role to ensure that its funds are
used for the purpose for which intended

Annual Financial Statements



Project Financial Statements

include:


Statement of sources & use of funds


Cash Flow Statement


Schedule of Withdrawal Applications


Statement of Special account & Reconciliation


Status of Funds/ Financing


Fixed assets schedule



Accounts should be prepared in accordance with
best
practice

-

internationally accepted accounting principles
(IPSAS or IFRS), using cash or accruals basis



National systems to be used where possible


7

Audit

Purpose
:


Provide accountability, verify compliance & make
recommendations


Key

points
:



Audit

can

be

conducted

by

Supreme

Audit

Institution

or

private

audit

firm

approved

by

IFAD


Audit

report

to

be

submitted

within

6

months

of

fiscal

year

end


3

Audit

opinions

to

be

provided

on

the

Financial

statements,

the

Special

Account

&

Statements

of

Expenditure


To

include

a

management

letter

with

details

of

weaknesses

in

internal

controls

and

non

compliance


Failure

to

submit

within

180

days

after

due

date

or

unsatisfactory

report

will

lead

to

suspension

of

funding


8

Background to the IFAD ESA portfolio

9



0
2
4
6
8
10
12
14
16
18
Series1
10
11
7
17
4
5
4
3
Financial
Statements
NOT
Major
control/fin
mgmt issues
Action plan
mandatory
Action plan
significant
Audit opinion
missing WAs
Audit opinion
missing:
SpecialAccoun
ESA NOT
agrees with
AuditOpinions
Auditor work
NOT
satisfactory
Assessment of 41 Audit Reports received: 1 July 2009
-

30 June 2010

Procurement

Purpose:


To establish an effective procurement system
that leads to improved procurement performance



This

can

be

achieved

by
:


Preparing

a

procurement

plan

before

start

of

financial

year

&

submit

to

IFAD

for

No
-
objection


Finances

to

be

used

for

only

items

in

the

procurement

plan

&

provisions

of

financing

agreement


IFAD

procurement

guidelines

to

be

followed

&

all

steps

adhered

to


Plan

in

advance

-

consider

whether

prior

or

post

review

applies

&

act

accordingly


Contract

management

is

key



10

Other areas discussed


Annual work plans and budgets


Critical setting of AWPB to ensure milestones met


Monitoring to ensure steady progress & performance


Value for money leads to higher impact from resources


Ensure adequate cashflows + anticipates gaps by
planning


Loan administration


Financing Agreement/ LTB


critical documents


Special account reconciliations, Exchange rates


Loan closure procedures


Challenges faced by particular projects in
implementation

11

FM Tools & Resources

12



FM&GG Internet site:


English
:

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


French:

http://www.ifad.org/operations/pf/finance/french/index.htm

Withdrawal Application Tracking System (WATS)


https://webapps.ifad.org/wats/login

Group PC/ Accountants mailing lists


updated names to

r.farrant@ifad.org


2010


Revised Procurement guidelines


ARTS (Audit Report Tracking System)

2010/11


Regional FM resource packs


Revised Loan Admin
procedures


Revised Audit Guidelines


2012


New Loans & Grants system

Key success factors

Project management


single most important
determinant of project implementation results

FM Workshop test highest results


Farida Mukungu (CAIIP, Uganda)


Randrianarimanana Mamitiana

(Ad2M, Madagascar)


Zaki K Juma (ASSP/ASDP
-
L, Zanzibar)


Clear correlation between projects with high fiduciary
ratings and overall implementation progress

2010 Portfolio performance review


highest fiduciary ratings




13

Country

Loan/Grant No.

Project

Ratings

R
w
anda

671/8053
-
RW

Support Project for the Strategic Plan for the Trans
formation of Agriculture

1

Rwanda

8020/8054
-
RW

Kirehe Community
-
based Watershed Management Project

1

Uganda

724/784
-
UG

Community Agricultural Infrastructure Improvement Programme

1

Burundi

500
-
BI

Rural Recovery and Development Programme

2

Zambia

643
-
ZM

Rural Finance Programme

2


Fiduciary best practices


Centralised country control unit


Use of external services firm


Additional missions and support


Internal auditor


Country finance & procurement working group


Standardised country rules, procedures, training


Review of authorised allocations & thresholds


Proactive staff to accelerate procurement processes


Reliable computerised financial systems


Regular (quarterly) reporting



14

What next?

Lessons learned

Better efficiency + effectiveness in fiduciary matters
= increased implementation results



Many best practice examples exist in IFAD projects


Greater exchange of experiences should occur


Make use of IFAD tools & resources


Future FM workshops


When, where, how often, how to finance?



15