Financial Management for Africa Centers of Excellence (ACE II) Project Presented by Patrick Umah Tete, World Bank on October 25, 2016 in Nairobi, Kenya

Overview of the session What is good Financial Management Practice for an ACE? Project Implementation Plan Financial Management Contents Addressing ACE Financial Management Gaps Benefiting from Financial Management Disbursement Linked Indicators (DLIs) Financial Management Support Team

Good FM Practice for ACE Have a work plan that shows how you plan to use ACE funds. Have a budget which costs the annual work plan. The budget should be approved before the year of its operation and monitored at least every quarter comparing actual expenditure with the budget and taking action on any significant variances. Accounts should be prepared monthly and after every semi-annual (quarterly for IUCEA), you need to send an Interim Financial Report to the World Bank within 45 days after the end of the reporting period. Having a computerized accounting information system is an advantage compared to a manual accounting system as accounts are prepared efficiently with minimal errors.

Good FM Practice for ACEs Compliance with International Public Sector Accounting Standards or International Financial Reporting Standards is highly recommended. Having a good Financial Management Manual, Operations Manual and Project Implementation Manual provides financial discipline as it defines the mode of operation. Having an internal audit department that audits the ACE regularly based on a risk based approach and produces reports that are acted upon by management is a very strong internal control system. Having an audit committee made up of non executive members that meets at least every quarter to follow up on both internal and external audit issues and actions taken by management is also a very strong internal control system.

Good FM Practice for ACEs Regularly submitting withdrawal applications to the Bank to ensure the ACE is well funded to operate effectively. Having the annual financial statements prepared within 3 months after the end of the financial year and submitting them for audit. Appointing the external auditors in time to conduct the audit or communicating to the Supreme Audit Institution to plan for the audit is highly recommended. Submitting the audit report to the World Bank in a timely manner in accordance with the Financing Agreement. ACEs & IUCEA audited accounts: 6 months after the end of the financial year. University audited accounts: 9 months after the end of the financial year except for University of Rwanda (10 months).

Project Implementation Manual/Plan – FM Contents It should refer to the accounting policies and procedures in the University or ACE or Government FM Manual (Institutional Manuals) to be used for the project . It should cover the gaps between the existing institutional FM Manuals and the Financing Agreements with the World Bank. These areas include: Detailing how the ACE funds will be used. Should include an account for ACE revenue generated. How the financing covenants will be complied with. Related to ensuring satisfactory FM systems are maintained throughout the project’s life; and Interim Financial Reports and annual audit reports are submitted on time to the World Bank. Describe in detail the funds flow arrangements (including the signatories) and the disbursement arrangements for the ACE project. Reference to the PAD to be made. How ACE FM action plans will be addressed. How FM DLIs will be implemented.

Addressing ACE FM Gaps

Addressing FM ACE Gaps

Addressing ACE FM Gaps

Benefiting from FM DLI#3

Financial Mgt Support Team

Thanks for listening to me. Q & A