1. STRENGTHENING FINANCIAL MANAGEMENT IN MAPs (Multi-Sectoral AIDS Program) FOR SUB-SAHARAN AFRICA ADDIS ABABA, ETHIOPIA February 14 – 18, 2005

2. Objective and Background  Progress made since the George, South Africa Workshop to support implementation of MAPs  Improved rate of disbursement in general  In some MAPs there is a worrisome concern though  Suggesting analytical work to identify key problems is needed in slow disbursing MAPs  Initial pointers implied fiduciary aspects as the cause, but we think there is more to it

3. GENERAL OBSERVATIONS  Improved Capacity in NACs – generally most NACs have increased their capacity in FM management  Improved Cash Flow - in most NACs and at implementation level  Accountability for funds in better shape – expenditures at community level now accounted for frequently  Wide Range of Needs – public sector response and private sector involvement improving

4. What ’ s New  Sub-Regional MAPs - increased sub-regional MAPs emerging, some which are quite complex  IDFs and BNPPs – several interesting but complex Trust Fund financed operations in HIV-AIDS related areas are emerging  Use of UN Agencies – either as direct recipient of Grants or as sub-contractor of NACs is new and increasingly used phenomenon  Repeater MAPs – with passage of time the first generation MAPs are closing and follow-on MAPs/projects are coming in

5. ISSUES and CHALLENGES  Creative response to the epidemic – sub-regional MAPs calls for new and equally creative FM arrangements at various levels  Increased Partnerships with UN Agencies and other Donors – pose harmonization challenges in FM and Disbursement aspects and the Fiduciary arrangements, including the 3 Ones and ‘ Pulling of Funds ’ /SWAp  Country Institutions and Systems – greater need to embrace and use existing country institutions and systems where capacity strength permits

6. Cont …  Contracting out Fiduciary Function - If capacity is weak, and project is complex – what are our options?  Capacity Building – develop a time bound capacity building program easy to implement and provide resources to support across the various levels? It should be specific and targeted?  Capacity Retention and Incentives - develop an incentive mechanism to keep fiduciary staff motivated ab promote their retention by rewarding good performance  Sharing Information and Knowledge – helpful to share experiences, and seek for help from others by networking (Best Practice) – involve ACTafrica for help

7. QUESTIONS & ANSWERS THANK U