Knowledge Management
CONCLUSIONS AND RECOMMENDATIONS
4.8 Other offices and implementing entities Remarks/Comments .1 Are there any other regional offices or executing entities participating in
7.13.8 Annex B: Supporting Documents The p
fina a need n
ndards or pronouncements used by the project/entity
Evidence of the assessment planning process
cts)
• Draft format of the financial statements produced by the project/entity
• Evidence that work performed by consultants was supervised and reviewed
su porting documents will normally include the following items, if applicable to the project nci l management system and necessary for the assessment. General country information
ly be included if it is not otherwise available.
o
• Assessment Report
• Financial Management Questionnaire Financial regulations, sta
•
• Information concerning the legal and organizational structure of the entity
• Extracts or copies of important legal documents, agreements, or minutes
• Information concerning the sector, economic environment, and legislative environment within which the entity operates
•
• Evidence of the Financial Analyst’s consideration of the work of the Internal Auditor (if applicable) and conclusions reached
• Analyses of significant ratios and trends (revenue generating proje
• Copies of communications with other experts, or third parties involved in the assessment
• art of Accounts
• Project or entity Financial Management Manual
• Terms of reference for the audit
• Terms of reference and curriculum vitae for key financial and accounting personnel Operational manual
.13.9 Annex C: Financial Management Assessment Report
sessment and (b) to be the input to the project Appraisal Report, including an overall ssessment as to the adequacy of the financial management system. The executive summary
the following points:
(a) record an assessment of the adequacy of the financial management system and of the financial performance of any revenue-earning entities, and describe and give a timetable for any measures proposed to im
pliance; and
ats for audited
from the Country Governance Profile (CGP) and other
ors, the project, and its beneficiaries.
implementation capacity in financial management is assessed as weak, the
•
Summa Provide a brief summary of the project, focusing on the issues that imp
Cou r issu s
s possi
tent for this section could be common to all assessments in the country.
alysis: The risk analysis from the Financial Management Questionnaire should be copied In addition, the appropriate contribution to project’s Appraisal Report should be same format as is required in the Appraisal Reports:
Ch
•
• Copy of most recent audit report (if applicable) 7
Annex C-1: Content of the Financial Management Assessment Report
Executive Summary: The executive summary fulfils two purposes: (a) to summarize the findings of the as
a
should be brief and cover
prove capabilities;
(b) describe the status of the borrower’s and the project implementing entities’
compliance with audit covenants in existing Bank Group-financed projects, and explain any actions being taken to address noncom
(c) record agreements with the borrower on standards and form financial statements and the timetable for their submission.
addition, country level issues arising In
country analytic work (e.g. the World Bank led Financial Accountability assessment component of PEFAR) should be identified, including the impact on the project financial management
ystem.
s
In addition, the following issues should be covered, if significant:
• The flow of funds between don
• If project
supervision and other actions to mitigate the possible unfavorable results.
The adequacy of banking arrangements.
ry Project Description:
act the Assessment.
nt y Issues: Identify any country issues that are relevant to the project. The source of the es hould be current analytical work (e.g., CGP, PEFAR, PEFA-PFM, CPAR, etc.). Insofar ble, analysis of the country issues should not be repeated as part of the assessment. The a
Risk Risk Rating Risk Mitigation Measures
Strengths and Weaknesses: Identify the significant strengths that provide a basis for reliance on the project financial management system.
be addressed. Methods of addressing the eakness include an agreed action to rectify the weakness (the resolution will link to the action
Sig c solution
In the following chart, identify the significant weakness of the project financial management system and the way in which each weakness will
w
plan) or to accept it as a risk that will be mitigated (the resolution will link to the risk table, above).
nifi ant Weaknesses Re
Implementing Entity: Provide a description of the implementing entity and any unique features that impact the financial management issues.
Funds Flow: Describe the funds flow, preferably in the format of flow chart.
taffing: Identify the key staff positions and the capability of this staff to fulfil the accounting nd reporting needs of the project.
ccounting Policies and Procedures: Describe key policies and procedures that demonstrate the
nternal Audit: Describe the internal audit function and its oversight responsibilities over the
xternal Audit:
y, including the status of overdue audit reports or outstanding issues; if the issues are significant, they should be included in the action plan
• Describe audit arrangements for the current project, including appointment of auditor and
• Complete the following chart to clearly identify the audit reports that will be required to by each project implementation agency and the due date for submission.
Due Date S
a A
adequacy of the project financial management system.
I
project financial management system.
E • Describe issues that have arisen in the audit of previous Bank Group-financed projects implemented by the project and/or entit
and conditions.
the audit terms of reference.
be submitted Audit Report
Entity Project Other (specify)
Reporting and Monitoring: Describe the financial reporting systems and the ability to report on the project expenditures.
Attach a draft of the format of the financial statements that will be prepared by the project. This financial statements format will be used as the annual audited financial statements.
financial anagement of the project.
isbursement Arrangements: The assessment should document the following details of the
• Method;
•
•
identified that need
rec financial management, an action plan should be
me that are conditions should be noted as such; all action lans must be agreed with the borrower.
Completion Date Information Systems: Describe information systems that will be used for the m
Impact of Procurement Arrangements: Describe the impact of the procurement assessment on the assessment of the financial management system.
D
disbursement arrangements:
Special Account allocation and procedures;
• Disbursement Mechanisms (e.g., direct payment);
Any unique circumstances or requirements.
Action Plan, If Required (Agreed with Borrower): If weaknesses have been to be tified before the project has acceptable
docu nted in the assessment. Actions p
Action Responsible Person
Conditions: List all conditions (e.g., negotiation, Board presentation, effectiveness, isbursement), fully describing actions that must be
d taken to meet the condition.
rvi vision strategy and required resources for the financial
e o
Financial Covenants: List all financial covenants that will be in the project Loan/Grant greement.
A
upe sion Plan: Identify the super S
management aspects of the project.
Annex C: Financial Management Assessment Report (continued)
Annex C-2: Financial Management Assessment Report (Template Format) Name of Country]
[
[Name of Project (Project Ref. Number)]
Dat f Review Completion]
[
. Background I
1. Scope/Objective of Review of Financial Management System. This report is the result of financial management review and analysis as condu
a cted by [Name and Title of Consultant
and/or Bank staff conducting Review]. The scope of the work has been set out in the Terms of Reference for “Conducting and Preparing a African Development Bank Group Financial Management Assessment” dated X/X/XX. The objective of the review is to determine whether the project has in place a financial management system as required by the Bank Group under Operations Manual 600, Paragraphs 15 & 16.
2. Project Objective. The proposed Project’s main development objectives are:...
3. Project Status/Schedule. The Project is currently at [… stage]. Dates for the project ycle are: (a) Decision Meeting: [date]; (b) Appraisal: [date]; (c) Negotiations: [date]; (d) Board
]; ; and (h) Closing:
ate]. (Please separate ‘actual dates’ from ‘estimated dates for the remaining project cycle’) c
[date (e) Signing: [date]; (f) Effectiveness: [date]; (g) Completion: [date]
[d