Financial Management for Africa Centers of Excellence Project Presented by Patrick Umah Tete, World Bank on May 20, 2014 during the launch of the project in Abuja, Nigeria

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

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 every quarter, you need to send an Interim Financial Report to the Ministry of Education and World Bank within 45 days after the end of the quarter. 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 writes reports that are acted upon by management is a very strong internal control system. Having an audit committee made up of non executive members and 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 Ministry of Education and World Bank within 6 months after the end of the financial year.

Addressing ACE FM Gaps

Addressing FM ACE Gaps

Addressing ACE FM Gaps

Benefiting from FM DLI#3 These are: ACEs submitting timely withdrawal applications supported by financial reports showing how funds have been utilized. Universities under the university council having functioning audit committee that will amongst other assignments follow up audit issues related to the ACE. Universities having functioning internal audit units that will support the ACEs. ACEs publishing annual work plans, budgets, interim financial reports and audited reports on their websites to promote transparency and accountability.

Thanks for listening to me. Email contact: pumahtete@worldbank@org