Annual Report 2008 - Board Committees

Among the topics deliberated on by the committee were the annual report of the Office of the Auditor General's Integrity Division, the audit recommendation and implementation report of the outside auditor, the recommendations of the internal audit division, the expiration of the contract of the outside auditor and selection of an outside auditor for 2009 onward, ADB's annual financial statements, the audit strategy memorandum, and implementation of the information systems and technology strategy II and other information technology-related activities. The committee also reviewed ADB's risk management capability and the monitoring of progress in integrating stronger risk management in ADB, as well as the performance of ADB's nonsovereign portfolio.

The committee monitored and reviewed key issues and actions, including financial management and accounting standards, ordinary capital resources operating income and net income, and travel-related cost-saving measures. The committee also discussed the need to strengthen whistleblower protection and ongoing progress on attestation.

The committee met 11 times.

Budget Review Committee

The committee discussed the President's planning directions for preparing the work program and budget framework (WPBF) for 2009-2011. It noted the efforts to improve project implementation, focus on the Strategy 2020 priority sectors, enhance support for private sector development, implement the technical assistance reform agenda, and mobilize cofinancing. At midyear, the committee reviewed the progress of the 2008 operations, noting that the operations departments had reduced the percentage of at-risk projects. The committee was also briefed on the efforts to lower the number of technical assistance projects without compromising the demand and requests of developing member countries.

The committee met with the vice-presidents on ADB's draft WPBF (2009-2011). The committee noted the importance of sector and thematic alignment of the WPBF with Strategy 2020, and ADB's innovative knowledge and advisory services in the focus areas. With the greater and more varied resource requirements under Strategy 2020, the committee also underscored the need for human resources and skills mix alignment.

The committee discussed the 2009 draft budget and highlighted the need to provide adequate staffing and other budgetary resources to successfully carry out the priorities outlined in the WPBF. The committee also noted the importance of mainstreaming managing for development results, especially in project implementation and portfolio management. The committee confirmed that the 2009 budgets for ADB and the Asian Development Bank Institute are consistent with the work plans, and appropriate for consideration by the Board.

The committee met 10 times.

Compliance Review Committee

The committee is responsible for clearing the terms of reference of the Compliance Review Panel (CRP) and the time frame for conducting each compliance review authorized by the Board, and reviewing the CRP's draft reports on monitoring the implementation of any remedial actions approved by the Board. The committee is mandated to meet as often as it considers necessary.

The committee met twice, once to discuss the CRP's fourth monitoring report (2007-2008) on implementation of Board-approved remedial actions of the Chashma Right Bank Irrigation Project in Pakistan, and once on the CRP's second annual monitoring report 2007-2008 on implementation of Board-approved remedial actions of the Southern Transport Development Project in Sri Lanka. All such monitoring reports are posted on the CRP website (www.compliance.adb.org). The committee also held several informal discussions with the CRP members on implementation of the accountability mechanism, especially on compliance review practices and procedures.

Development Effectiveness Committee

The committee reviewed 17 independent evaluation reports by OED. Some of the major findings and recommendations were considered in finalizing Strategy 2020 and the Donors' Report for ADF X. The committee also discussed OED's findings and recommendations on issues related Executive Director Phil Bowen tries out a new village pump in Tonle Sap, part of an ADB-funded water supply project in Cambodia to ADB's institutional effectiveness, such as managing for development results, resident mission operations, and ADB's implementation of the Paris Declaration on Aid Effectiveness. Discussions on development effectiveness covered private sector operations and country assistance programs for Mongolia and the Philippines.

The committee discussed the inaugural Development Effectiveness Review, which was prepared in the context of ADB's new results framework. It also reviewed the work program and budget for OED.

The committee met 11 times in 2008.

Ethics Committee

The Board established the committee to address matters of ethics that may arise under the Code of Conduct adopted by the Board in September 2006. The code provisions apply to all Board members (directors, alternate directors, and temporary alternate directors) and to the President.

The committee is responsible for advising directors, alternate directors, or the President when they request guidance on actual or potential conflicts of interest or other ethical issues concerning themselves. The committee also considers any allegations of misconduct against directors, alternate directors, or the President that relate to the performance of their duties. It recommends appropriate action to the Board.

The committee held one meeting in 2008, and the chair met several times with the Office of the General Counsel to discuss related policies and procedures.