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Foreword
1. Introduction to the Guidelines
2. User Instructions
3. Preparing and Appraising Investment Project
4. Financial Management of Executing Agencies
5. Reporting and Auditing
5.1. Financial Reporting and Auditing Overview
5.2. Accounting Standards and Policies
5.3. Financial Reporting
5.3.1. Introduction
5.3.2. Content and Timing of Financial Reporting
5.3.3. Accounting Statements and Financial Reports
5.3.4. Interim Financial Statements and the Project Management Report
5.3.5. Audited Project Financial Statements
5.3.6. Annual Financial Statements for a Non-Revenue-Earning Project
5.3.7. Annual Financial Statements for Revenue-Earning Projects and EAs
5.3.8. Supplementary Financial Statements
>>5.3.9. Designing Financial Reports for Revenue-Earning Projects
5.3.10. Designing Financial Reports for Non-Revenue-Earning Projects
5.3.11. Examples of Model Financial Statements
5.4. Auditing Standards and Auditor Engagement
5.5. Reviewing Financial Reports
5.6. Reviewing Auditors' Reports
6. Financial Institutions
7. Knowledge Management
Financial Management and Analysis of Projects : 5. Reporting and Auditing : 5.3. Financial Reporting

5.3.9. Designing Financial Reports for Revenue-Earning Projects

5.3.9.1. The characteristics of the project and of the EA should normally determine the detail and timing of periodic financial reports. Normally, a revenue-earning EA should be asked to provide the following financial statements and information:

  • balance sheets showing the EA's financial condition at the opening and close of a financial reporting period (usually a part or the whole of a fiscal year);
  • combined income statements for the project and the EA for the current and previous reporting period or fiscal year;
  • statements of cash flows for the EA for the current and previous reporting period or fiscal year, showing flows specific to the project, and
  • Notes to the Financial Statements plus supplementary information and disclosures necessary to support or explain information presented in the reports.
5.3.9.2. In all cases referred to above, where the financial statements include information relating to the operation of the EA, the financial and statistical data relating to a project should be clearly segregated and reported within each statement. In particular, if the project has been under implementation for more than 2 years, the Notes to the Financial Statements should provide a listing of annual expenses against annual budgets.

5.3.9.3. Where subborrowers or secondary EAs are responsible for implementation of project components, they should be required by the borrower or the principal EA to provide similar financial statements necessary to document project activities, and where appropriate, their own financial performance and status.

5.3.9.4. EAs for revenue-earning projects are required to provide updated forecasts after loan signing and the start of project implementation, for a specified period. These updated forecasts provide early warnings of project problems so that timely corrective actions can be taken. The specified period is at the discretion of the financial analyst but will normally be from 3 to 5 years following project completion. Likewise, an EA for a revenue-earning project will normally be required to submit audited annual financial statements for a specified period for monitoring purposes. This requirement will be specified in the loan agreement. The exact period is at the discretion of the financial analyst and will normally match with the specified period for which updated forecasts are required to be provided.

5.3.9.5. Arrangements should be made by the management of the regional division concerned to retain the relevant records within the Division, or to have ready access made available by Records Section, for the requisite period.


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5.3.8. Supplementary Financial Statements		Next>>
5.3.10. Designing Financial Reports for Non-Revenue-Earning Projects