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	Table of Contents
p. 12 of 16 BACK | NEXT Executive Summary Current ADB Inspection Function Consultations on the Review of the ADB Inspection Function Proposal for a New ADB Accountability Mechanism: A Two-Step Approach of Consultation and Compliance Review Reasons for a New ADB Accountability Mechanism Introduction to the New ADB Accountability Mechanism Specific Issues Related to the New ADB Accountability Mechanism Policy under the New ADB Accountability Mechanism Consultation Phase Compliance Review Phase Resource Implications Status of Operations Manual Updating in the Context of the Inspection Policy Effective Date of the New ADB Accountability Mechanism Transition Arrangements Review of the ADB Accountability Mechanism Recommendation

ADB Accountability Mechanism : Proposal for a New ADB Accountability Mechanism: A Two-Step Approach of Consultation and Compliance Review

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H. Status of Operations Manual Updating in the Context of the Inspection Policy

141. A review process on the OM updating in the context of the current inspection policy is under way. The intention underlying this review is for the inspection policy to cover all elements of all operational policies and procedures that provide ADB staff with mandatory directions on how to formulate, process, and implement projects. The inspection policy will not cover non-operational housekeeping matters such as finance and administration. In March 2002, a senior staff committee was established by the President to oversee the review process and implement a work plan. The work done by the senior staff committee was separately undertaken from, but related to, the review of the Inspection Function. The result of this review process was intended to be linked to the review of the Inspection Function, as the compliance review refers to "ADB's operational policies and procedures."

142. A memorandum was presented to the Board in October 2002 on the status of the review process, together with a list of ADB's operational policies and procedures subject to inspection, contained in a compendium. The compendium was posted on the ADB web site for public comments from November 2002 to January 2003. The comments received were not positive and in response, ADB withdrew the compendium from the web site in February 2003 and is presently moving forward on the OM review and updating.

143. The Board will decide whether a particular policy is an operational policy subject to compliance review and it is for CRP to determine which part of the operational policies and procedures was or is not complied with after carrying out a compliance review of the request concerned. Management will not carve out which operational policies or procedures should be excluded from compliance review. The draft reorganized table of contents of the OM is provided in Appendix 8. The current OM does not include sector policies, and the question whether sector policies should be incorporated in the OM is under review. For the present and for purposes of the policy on the new ADB accountability mechanism, the scope of compliance review is "ADB's operational policies and procedures" as they relate to the formulation, processing, or implementation of an ADB-assisted project, and excludes matters relating to the procurement of goods and services, including consulting services, and non-operational housekeeping matters, such as finance and administration. They are included in the current OM, the Project Administration Instructions (PAIs), and the New Business Processes (NBP). The revised OM will make reference to the PAIs and the NBP and eventually include them. For those operational policies and procedures that have been approved by the Board, but have not been properly incorporated into the OM, original policy papers as approved by the Board will be used in the absence of either express incorporation in OM sections or as staff instructions or similar documents that are intended to be issued eventually as OM sections, or in the event that there is a conflict between a Board-approved policy and an OM section.

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