Catalog

	Table of Contents
p. 152 of 203 BACK | NEXT 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 6. Financial Institutions 7. Knowledge Management 7.1. Useful Websites 7.2. Operations Manual (OM) 7.3. Project Administration Instructions (PAIs) 7.4. International Standards 7.5. International Accounting and Auditing Architecture 7.6. Financial Review Checklist for RRPs 7.7. Appraisal Checklist: Nonrevenue-Earning Project 7.8. Appraisal Checklist: Revenue-Earning Project 7.9. Appraisal Checklist: Private Sector Project 7.10. Appraisal Checklist: Financial Institution 7.10.1.1. Preparation at Headquarters 7.10.1.2. Initial Steps 7.10.1.3. Institutional Environment 7.10.1.4. Management Policies and Systems 7.10.1.5. Definition of Project Cost Requirements 7.10.1.6. Prepare Financial Projections for Ongoing FI Operation 7.11. Undertaking Sensitivity and Risk Analyses 7.12. Model Operating Covenants 7.13. Model Capital Structure Covenants 7.14. Model Liquidity Covenants 7.15. Commonly Used Ratios 7.16. Model Financial Statements: Service Organization 7.17. Model Financial Statements: Manufacturing Organization 7.18. Model Terms of Reference for an Auditor 7.19. Audit Report Questionnaire Addendum

Financial Management and Analysis of Projects : 7. Knowledge Management : 7.10. Appraisal Checklist: Financial Institution

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7.10.1.3. Institutional Environment

7.10.1.3.1. Confirm evidence provided through readings in 7.10.1.2 above.

7.10.1.3.2. Determine current organizational structure and management position responsibilities, with respect to the FI and the project, of any central government, state government, and sector agencies that will be involved in project design, development, implementation, and operation (for example, Central Bank, Ministries of Finance and Economy, Industrial Production, Planning and Development, Agriculture, Export Guarantee Agency, etc).

7.10.1.3.3. Determine the likely acceptability to ADB of current and/or proposed organizational and management structure of the FI and/or consultants involved in preparing the project's planning, programming, design, development, implementation, and operation.

7.10.1.3.4. Understand the country's financial sector, the role of the central bank and the banking system, and their probable application to/impact on the FI and the project.

7.10.1.3.5. Understand the role that the FI plays within the financial sector; for example, is it an apex institution serving one or more FIs? Is it a microfinance institution serving a specific small sectoral or regional/ local group of clients? Is it a narrowly focused operation for a subsector such as textiles?

7.10.1.3.6. Determine the capability, capacity and current performance of the country's accounting and auditing profession as it impacts, or will impact, on the FI and on the project.

7.10.1.3.7. In countries where the government audit service is required to audit FI activities and financial statements, determine the capability, capacity and current performance of the government auditing profession, particularly the Auditor-General's Office or equivalent, as it impacts, or will impact, on the FI, and on the project.

7.10.1.3.8. Determine the actual, or forecast anticipated, quality of accounting and bookkeeping capability and training in the FI to service the FI, and the project.

7.10.1.3.9. Determine the capability of the financial manager(s) designated to be responsible for the project.

7.10.1.3.10. Make judgments as to required modifications to the FI's organizational structures, lending operations, cash management, risk management, financial accounting/bookkeeping/management and staffs, and training necessary to support the project-share with Project Officer-and where appropriate recommend for inclusion as a component in the project for appraisal.

Back 7.10.1.2. Initial Steps	Next 7.10.1.4. Management Policies and Systems