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IFAD East & Southern Africa Portfolio Characteristics

Regional Financial Management Workshop Nairobi, 20-22 September 2010

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Setting the context

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ESA Loan & DSF Grant Portfolio

ESA Loan & DSF Grant Portfolio

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%

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Setting the context

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ESA Loan & DSF Grant Portfolio

ESA Portfolio by type

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Financial management – key to success

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

Why?

Better efficiency + effectiveness + implementation results

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How?Critical setting of AWPB to ensure milestones metMonitoring of AWPB to ensure steady progress & performanceValue for money leads to higher impact from resourcesEnsure adequate cashflows + anticipates gaps from planning

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Key success factors

Project management – single most important determinant of project implementation results

High correlation – implementation progress, M+E, procurement, AWPB

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Sound, realistic + timely work planning & budgeting, rigorous follow up, attention to M&E

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Fiduciary performance

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

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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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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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Disbursements

USD 121 million (36% increase)

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Disbursements - WAs

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Disbursements - WAs

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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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FM Tools & ResourcesFM&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

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Withdrawal Application Tracking System (WATS) https://webapps.ifad.org/wats/login

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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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Feedback on audit reports

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Feedback on audit reports

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Assessment of 41 Audit Reports received: 1 July 2009 - 30 June 2010

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FM Tools & Resources2010 ARTS (Audit Report Tracking System) Revised Procurement guidelines Regional FM resource packs

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2010/11Revised Loan Admin procedures Revised Audit Guidelines

2012Loans & Grants system

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FM Tips

Do’sQualityTimelinessSend updated E-mail

addresses to:

r.farrant@ifad.org

r.getachew@ifad.org

Don’t’so Be afraid to ask IFAD!

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