Transcript Document

Session 6: Harmonizing and
Aligning Financial Management
(FM) Arrangements
Main Recommendations from the IHP+
Working Group
• Conduct Financial Management Assessments (FMAs) jointly; start with
desk review of existing; carry out well defined field work only when
necessary
• Establish a joint quality assurance to ensure DPs accept outputs of others
• Design the FM framework, systems and arrangements together
• Agree on the action plan to i) implement the proposed actions or ii)
strengthen the system in place; develop a comprehensive FM Capacity
Building program for mid-term
• DPs to offer coordinated support to PCs during implementation of action
plan
• DPs to produce a model MOU which includes some standard language,
some options to chose from, and a sections to be filled by FM teams
• DPs to coordinate supervision/monitoring missions during implementation
phase
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Steps to harmonized and aligned financial
management arrangements
1
2
At the request of the
country, GOV-MOH and
active DPs agree to proceed
with FM harmonization.
FM Team with
representatives from
donors and government is
appointed.
6
5
Government & donors
complete and sign MoU
for common FM
arrangements.
Government implements
action plan; DPs follow-up
and support
implementation.
7
3
Core Team verifies that
the system is up and
running and start
disbursement .
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Completed
in parallel
Core FM Team
agrees/designs common
FM arrangements, drafts
MOU, and produces action
plan for implementation.
In all cases the final report should
include:
• Proposed action plan for systems and
capacity building
• Proposed single accounting system
and Chart of Accounts
• Content for single set of financial
reports
• Draft ToRs for single external
comprehensive audits
• Proposed draft MOU with salient
features of the Common Financial
Management Arrangement.
Small subset of FM Team
(Core FM Team) collects
and shares all available,
relevant information.
Yes, information is
sufficient. Field
Financial Management
Assessment not
required, core team
produces FM report
4
Core FM Team conducts
desk review, produces
inception report, and meets
with the FM Team to
determine if information is
sufficient.
No, information is not
sufficient. Field
Financial Management
Assessment required
4a
See Slide 2 “Steps to
Producing a Report on FM
and outputs (when
additional FM assessment
is required)”
Bottlenecks to Further Progress
In order to move ahead with full FM harmonization and
alignment, the following challenges must be addressed:
• Institutionalize harmonization efforts within DPs
• Create focal points within DPs
• PCs to joint force within MOH, MOF, Auditor General for the
joint work
• Country Partners to increase demand for harmonization and
push back on solo work and parallel systems
• Mobilizing financial support to implement action plans and
coordinating TA
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FM Assessment in Sierra Leone: Proposed
Harmonization and Alignment
• Align with Gov. Strategic Plan & Budget
• Align Finance Administration Functions with Gov.
framework/modalities – Merge all FM functions under the DF
with oversight from CMO & PS
• FM system to move to IFMIS when ready
• A single set of Financial reports based on Gov. Chart of Accounts
• A single comprehensive Audit, coordinated by office of the
Auditor General
• Simplification of mechanisms & processes (already identified as
part of FMA)
• A comprehensive Capacity Development package to be
supported by DPs
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