Financial Management | Asian Development Bank

Financial Management

ADB develops and applies policies, frameworks and guidelines to support, assess and monitor the adequacy and effectiveness of country-, sector-, program- and project-related financial management systems. This page lists reference materials on ADB's financial management in projects.

e-Learning courses

Cash Basis IPSAS for ADB Project Financial Reporting

The course is designed for individuals who have, or plan to have a key role in the preparation of project financial statements for submission to ADB and provides the knowledge and skills to prepare PFS in accordance with the requirements of ADB.

Cost Estimates Preparation

The e-Learning module is a preparatory course for gaining basic understanding of the importance of robust project cost estimates, its guiding principles and detailed components of ADB-financed projects.

To register for these courses, please complete the online registration form. Your username and password will be emailed to you. Please register your official email account only. Once your registration is completed, you may access the ADB Financial Management e-Learning courses.

Methodology Notes

January 2009
Financial Due Diligence: A Methodology Note
The Methodology Note provides the specific guidance and procedures in the conduct of the financial due diligence of ADB projects. It covers four core activities of financial management: (i) financial management assessment, (ii) project cost estimates and financing plan, (iii) financial analysis, and (iv) financial evaluation.

Handbook

December 2006
Handbook for Borrowers on the Financial Management and Analysis of Projects
The Handbook is an instructional material to guide borrowers and executing agencies in ensuring that the financial management arrangements of projects meet ADB’s requirements. It provides the application of the policies and procedures to ADB projects that are embodied in the Guidelines and is consistent with ADB’s anti-corruption policy.

Technical Guidance Notes

May 2015
Technical Guidance Note on Financial Management Assessment
The technical guidance note provides guidance to Asian Development Bank staff, consultants and executing agencies on ADB requirements and considerations for financial management assessment.

March 2015
Financial Management Technical Guidance Note on Preparing a Country Audit Strategy
This technical note provides guidance on preparing country audit strategy to support project preparation and administration.

March 2015
Technical Guidance Note: Project Financial Reporting and Auditing
This Technical Guidance Note describes ADB’s specific requirements on the project’s financial reporting and auditing arrangements, and must be used and interpreted in conjunction with ADB’s Operations Manual, Project Administration Instructions, and the Guidelines.

March 2015
Technical Guidance Note: Guidance on Using Audited Project Financial Statements (APFS) - Standard Review Checklist
This Technical Guidance Note is an instructional material that provides an itemized discussion of the purpose and primary focus areas in using the Audited Project Financial Statements (APFS) - Standard Review Checklist.

February 2014
Preparing and Presenting Cost Estimates for Projects and Programs Financed by the Asian Development Bank
The purpose of this note is to provide guidance to executing agencies, consultants, and ADB staff on preparing and maintaining cost estimates, and how cost estimates should be presented in ADB documents. It offers an approach and methodology, based on international good practice, that if consistently applied should lead to the preparation of more robust cost estimates and should facilitate oversight of ADB-financed projects.

References

Good Practice Examples 
These good practice examples illustrate the application of ADB's policy and guidelines for project financial due diligence. These examples may be used as guides when preparing project cost estimates and financing plans, conducting financial management assessments, and performing financial evaluation and financial analysis, keeping in mind the unique nature of each project and exercising professional judgment.

August 2017
Public Financial Management Systems - Fiji: Key Elements from a Financial Management Perspective
This report documents Fiji’s financial management systems covering budgeting, funds flow, accounting and reporting, and auditing systems.

March 2017
Public Financial Management Systems - Viet Nam: Key Elements from a Financial Management Perspective
This publication documents Viet Nam's financial management systems covering the areas of budgeting, funds flow, accounting and reporting, and auditing systems.

January 2014
Funds Flow, Accounting, and Audit in India
This paper provides a handy guide to project officers processing and implementing sovereign projects in India, in the areas of funds flow, accounting, audit, and related matters.

August 2013
ADB Products and Financing Modalities for Sovereign Guarantees, Loans, and Grants
The ADB Products and Financing Modalities Pamphlet is a quick reference guide on the financial instruments offered by ADB to its developing member countries. The pamphlet summarizes the financing terms and attributes of sovereign (and sovereign-guaranteed) loans, grants, and guarantees. It is a valuable tool for understanding the different modalities during project design, negotiations, and implementation.

Templates and tools

Financial Management Starter Kit

The Financial Management starter kit is a compilation of guidance, tools, and reference materials relevant to preparing and conducting financial due diligence during project processing. The Financial Management kit has been organized and prepared for quick access by ADB staff and consultants, and by executing and implementing agencies. It provides the methodology, key guidance notes, financial due diligence requirements, and examples of cost estimates model and good practice in financial management assessment.

July 2005
Guidelines on the Financial Management and Analysis of Projects
The Guidelines is the overarching framework governing the financial due diligence of ADB projects. It describes the policies and procedures on the financial management of ADB projects, and provides guidance on the evaluation of the financial management arrangement of executing and implementing agencies, and the financial analysis of ADB projects during appraisal.