1. IFAD East & Southern Africa
Portfolio Characteristics
Regional Financial Management Workshop
Nairobi, 20-22 September 2010
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2. Setting the context
ESA Loan & DSF Grant Portfolio
Burundi 9%
Zambia 4% Angola 1% Comoros 0%
Uganda 17% Eritrea 4%
Ethiopia 13%
Tanzania12%
Kenya 8%
Lesotho 2%
Swaziland 2%
Madagascar
Rwanda 8% Malawi 3% 7%
Mozambique
9% Mauritius 1%
ESA Loan & DSF Grant Portfolio
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3. Setting the context
ESA Portfolio by type
ESA Loan & DSF Grant Portfolio
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4. Financial management – key to success
Clear correlation between projects with high fiduciary
ratings and overall implementation progress
Why?
Better efficiency + effectiveness + implementation results
How?
Critical setting of AWPB to ensure milestones met
Monitoring of AWPB to ensure steady progress &
performance
Value for money leads to higher impact from
resources
Ensure adequate cashflows + anticipates gaps from
planning
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5. Key success factors
 Project management – single most
important determinant of project
implementation results
 High correlation – implementation
progress, M+E, procurement, AWPB
Sound, realistic + timely work
planning & budgeting, rigorous
follow up, attention to M&E
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6. Fiduciary performance
 Clear correlation between projects with high fiduciary
ratings and overall implementation progress
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7. 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
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8. Fiduciary best practices
 Reliable financial systems
 Regular (quarterly) reporting
Accounting packages
 10/42 projects use spreadsheets
 60% of projects with accounting software use TOMPRO
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9. Disbursements
 USD 121 million (36% increase)
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10. Disbursements - WAs
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11. Disbursements - WAs
Common issues:
• Reconciliation of Special Account
• WAs not fully supported
• Problems understanding the mechanism for grants – based
on justification of the 75% of the advance & subsequent
year’s AWPB
• Exchange Rate issues
• Using the wrong forms
• Delays in responding to queries, submitting WAs with
unsigned SOEs, using wrong forms especially summary
sheets, etc
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12. FM Tools & Resources
FM&GG Internet site:
English: http://www.ifad.org/operations/pf/finance
French: http://www.ifad.org/operations/pf/finance/french/index.htm
INSERT SCREEN SHOT FROM SITE
Withdrawal Application Tracking System (WATS)
https://webapps.ifad.org/wats/login
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13. FM Tools & Resources
Audit Review Form/ Checklist
• Iterative tool, prepared by IFAD for implementation support
• Increased importance due to renewed emphasis on fiduciary
responsibilities under direct supervision
• Analyses completeness and reasonableness of:
– financial statements
– audit opinions
– audit work performed
• Lists major follow up action to be performed by project
• May require action plan to be prepared
• Updated format to be launched with new audit report tracking tool
(ARTS)
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14. Feedback on audit reports
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15. Feedback on audit reports
Assessment of 41 Audit Reports received: 1 July 2009 - 30 June 2010
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16. FM Tools & Resources
2010
 ARTS (Audit Report Tracking System)
 Revised Procurement guidelines
 Regional FM resource packs
2010/11
Revised Loan Admin procedures
Revised Audit Guidelines
2012
Loans & Grants system
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17. FM Tips
Do’s Don’t’s
 Quality o Be afraid to ask IFAD!
 Timeliness
 Send updated E-mail
addresses to:
r.farrant@ifad.org
r.getachew@ifad.org
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