Regional: Improving the Financial Management Capacity of Executing Agencies in Afghanistan and Pakistan

Sovereign Project | 46539-001

Summary

The regional capacity development technical assistance (the TA) seeks to strengthen project financial reporting, auditing and executing agencies' accounting operations in Afghanistan and Pakistan.

Output 1: Improved quality of project financial statements. Workshops will be provided to executing agencies in both Afghanistan and Pakistan. The workshops will help project accountants become familiar with cash basis International Public Sector Accounting Standards (IPSAS) and will demonstrate how to prepare a project financial statement in accordance with cash basis IPSAS by using country-specific project financial statements. The workshops will also help executing agencies understand the importance of independent audit as well as timely response to audit findings raised by the auditors. After the workshops, executing agencies will be able to prepare project financial statements acceptable by ADB.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

No documents of this type are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Improving the Financial Management Capacity of Executing Agencies in Afghanistan and Pakistan
Project Number 46539-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8697-REG: Improving the Financial Management Capacity of Executing Agencies in Afghanistan and Pakistan
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Public expenditure and fiscal management
Gender Equity and Mainstreaming No gender elements
Description

The regional capacity development technical assistance (the TA) seeks to strengthen project financial reporting, auditing and executing agencies' accounting operations in Afghanistan and Pakistan.

Output 1: Improved quality of project financial statements. Workshops will be provided to executing agencies in both Afghanistan and Pakistan. The workshops will help project accountants become familiar with cash basis International Public Sector Accounting Standards (IPSAS) and will demonstrate how to prepare a project financial statement in accordance with cash basis IPSAS by using country-specific project financial statements. The workshops will also help executing agencies understand the importance of independent audit as well as timely response to audit findings raised by the auditors. After the workshops, executing agencies will be able to prepare project financial statements acceptable by ADB.

Output 2: Improved quality of audit reports. This output is only applied to ADB-financed projects in Pakistan. ADB will provide workshops to government auditors on ADB's auditing requirements, relevant auditing standards under International Standards of Supreme Audit Institutions, as well as eligible expenditure under ADB-financed projects.

Output 3: Country project financial management manuals. To ensure the manual is owned and used by executing agencies, consultants will conduct workshops to gather the requirements from executing agencies. By working with executing agencies, and with ADB guidance, consultants will develop country project financial management manuals for Afghanistan and Pakistan to identify specific requirements and clarify which actions need to be undertaken when, how, and by whom. The manual will help executing agency staff who are implementing the projects to record financial transactions, strengthen internal control, prepare financial reports, and administer ADB-financed projects. The manual will help executing agencies improve their capacity in financial management. It will also include samples of project financial statements for that country and, for Afghanistan, terms of reference for external auditors.

Project Rationale and Linkage to Country/Regional Strategy

Currently, ADB receives annually an average of 120 audited project financial statements and audited financial statements from executing agencies implementing ADB-financed projects in Afghanistan and Pakistan. The quality and timeliness of audited project financial statements is a major concern. The project financial statement is often presented in a nonstandard form and is inconsistent among executing agencies. The project financial statements for ADB-financed projects are generally prepared in accordance with cash basis International Public Sector Accounting Standards (IPSAS).

The TA aims to enhance awareness and strengthen knowledge on international accounting and auditing standards and practices to improve financial reporting and auditing for ADB funded projects in Afghanistan and Pakistan.

Impact Improved financial management compliance across all ADB-financed projects in Afghanistan and Pakistan
Project Outcome
Description of Outcome Improved financial management of ADB-financed projects during project implementation in Afghanistan and Pakistan
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved quality of project financial statements

2. Improved quality of audit reports

3. Country project financial management manuals

Status of Implementation Progress (Outputs, Activities, and Issues)

(1) Recruitment is completed

(2) Government concurrence is obtained.

(3) Implementation is on track

Geographical Location Pakistan,Afghanistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design ADB's Central and West Asia Department (CWRD) conducted consultations in the second half of 2013 on financial management matters of ADB-financed projects in CWRD's developing member countries. As a result of those consultations, the technical assistance (TA) focuses on two countries in immediate needs Afghanistan and Pakistan. The fact-finding in these two countries took place in February and May 2014.
During Project Implementation

ADB fielded mission and periodical meetings with Economic Affairs Division (EAD), Department Auditor General of Pakistan, Implementing Agencies and TA steering committee.

Implementation is on track.

Business Opportunities
Consulting Services

A consulting firm in accounting and auditing has been hired to (i) provide support to executing agencies or implementing agencies in preparing project financial statements in accordance with cash basis International Public Sector Accounting Standards (IPSAS), thereby improving project financial management efficiency; and (ii) develop the financial management manuals for Afghanistan and Pakistan. Team members assigned by the firm shall have a university degree in accounting or finance (preferably postgraduate level) and be a certified public accountant, chartered accountant, or a member of the Association of Chartered Certified Accountants.

(i) International expert, team leader (4 person-months)

(ii) National expert assigned for Pakistan, team member (7 person-months)

(iii) National expert assigned for Afghanistan, team member (7 person-months)

Responsible ADB Officer Diep Ngoc Thi Pham
Responsible ADB Department Office of the Director General, CWRD
Responsible ADB Division Portfolio, Results, Safeguards and Social Sector Unit, CWRD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 30 May 2013
Fact Finding 27 May 2013 to 07 May 2014
MRM -
Approval 12 Aug 2014
Last Review Mission -
Last PDS Update 18 Mar 2015

TA 8697-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Aug 2014 - 12 Aug 2014 30 Jun 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 12 Aug 2014 31,831.31

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.