background to the workshop
DESCRIPTION
Background to the Workshop. 2. 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 - PowerPoint PPT PresentationTRANSCRIPT
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)
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Background to the IFAD ESA portfolio
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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
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ESA Portfolio by type
Ongoing 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 extension/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
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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
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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
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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
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Background to the IFAD ESA portfolio
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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
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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
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FM Tools & Resources
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FM&GG Internet site:
English: http://www.ifad.org/operations/pf/financeFrench: 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 [email protected]
2010 Revised Procurement guidelines ARTS (Audit Report Tracking System)
2010/11Regional FM resource packsRevised Loan Admin procedures Revised Audit Guidelines
2012New 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
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Country Loan/Grant No. Project Ratings
Rwanda 671/8053-RW Support Project for the Strategic Plan for the Transformation 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
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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?
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