48191-001: Strengthening Financial Management in Asia and the Pacific | Asian Development Bank

Regional: Strengthening Financial Management in Asia and the Pacific

Sovereign (Public) Project | 48191-001 Status: Active

TA Description:

In pursuit of good governance in ADB's operations, this technical assistance (TA) will support the enhancement of financial management capacity in the region. The TA will focus on three pillars supporting effective financial management: (i) the quality of project auditing by private audit professionals, (ii) financial management assessments of ADB-financed projects, and (iii) project financial reporting through application of the cash basis international public sector accounting standard (IPSAS).

The TA will produce three outputs: (i) piloting quality assurance systems for PAOs, (ii) developing working papers on DMC financial management systems, and (iii) developing an e-Learning module on preparing project financial statements using the cash-basis IPSAS.

Project Details

Project Officer
Mehta, Anouj Operations Services and Financial Management Department Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Strengthening Financial Management in Asia and the Pacific
Project Number 48191-001
Country Regional
Bangladesh
Cambodia
Fiji
Indonesia
Myanmar
Nepal
Pakistan
Samoa
Sri Lanka
Viet Nam
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8740-REG: Strengthening Financial Management in Asia and the Pacific
Technical Assistance Special Fund US$ 730,000.00
TA 8740-REG: Strengthening Financial Management in Asia and the Pacific (Supplementary)
Technical Assistance Special Fund US$ 26,226.00
TA 8740-REG: Strengthening Financial Management in Asia and the Pacific (Supplementary)
Technical Assistance Special Fund US$ 450,000.00
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

TA Description:

In pursuit of good governance in ADB's operations, this technical assistance (TA) will support the enhancement of financial management capacity in the region. The TA will focus on three pillars supporting effective financial management: (i) the quality of project auditing by private audit professionals, (ii) financial management assessments of ADB-financed projects, and (iii) project financial reporting through application of the cash basis international public sector accounting standard (IPSAS).

The TA will produce three outputs: (i) piloting quality assurance systems for PAOs, (ii) developing working papers on DMC financial management systems, and (iii) developing an e-Learning module on preparing project financial statements using the cash-basis IPSAS.

Project Rationale and Linkage to Country/Regional Strategy

a. Link to Country Partnership Strategy/ADB Strategy 2020:

Governance in public financial management and procurement is a common theme among ADB's Country Partnership Strategies (CPS) with its developing member countries. While primarily focused in the public sector, the importance of good governance transcends both public and private sectors. This proposed R-CDTA is aligned with the principles of the CPS, and is consistent with ADB's Strategy 2020 core area of operation, regional cooperation and integration. The proposed R-CDTA supports the two key drivers critical to the achievement of ADB's strategic agenda: (i) good governance and capacity development, and (ii) knowledge solutions.

Impact Enhanced good governance and financial management in Asia and the Pacific
Project Outcome
Description of Outcome Strengthened capacity of auditors, enhanced ADB project financial management assessments, and improved government financial reporting
Progress Toward Outcome none
Implementation Progress
Description of Project Outputs

Audit quality assurance systems for PAOs piloted

Working papers on DMC financial management systems developed

An E-learning module on preparing project financial statements using the cash basis IPSAS developed

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

For Output 1, four PAOs, Cambodia, Samoa, Myanmar, and Nepal respectively, have been identified for pilot implementation. A study of the PAOs existing quality assurance systems has been completed in collaboration with CAPA, a good practice roadmap has been developed and three draft PAO audit QA systems roadmaps were developed and sent to the respective PAOs for review and further discussion.

Under Output 2, three draft PFM reports were sent to respective governments for endorsement. Another three draft PFM reports have undergone peer review and are currently being updated. One remaining report is due for development after concurrence from resident mission is received.

The development of an e-Learning module under Output 3 is completed and will go through user acceptance tests in the next 2 months.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A fact-finding mission was held on 13-14 August 2014 in Hanoi, Vietnam to discuss the objectives of Output 1 with CAPA which included: (i) identifying suitable PAOs for pilot implementation; (ii) agreement on the roles and responsibilities of ADB and CAPA; (iii) confirmation of the concept and scope of the component; and (iv) agreement on timetable and course of actions. A fact-finding mission for the other components was deemed not necessary.
During Project Implementation

The TA will produce three outputs: (i) piloting quality assurance systems for PAOs, (ii) developing working papers on DMC financial management systems, and (iii) developing an e-Learning module on preparing project financial statements using the cash-basis IPSAS.

For Output 1, four PAOs, Cambodia, Samoa, Myanmar, and Nepal respectively, have been identified for pilot implementation. A study of the PAOs existing quality assurance systems has been completed in collaboration with CAPA, a good practice roadmap has been developed and three draft PAO audit QA systems roadmaps were developed and sent to the respective PAOs for review and further discussion. One PAO audit QA systems roadmap is still under development. National workshops will be held to promote the quality assurance roadmap and gain commitment from the PAOs. The draft Audit QA systems roadmaps for 3 PAOs identified several impediments to the operationalization of audit QA systems such as lack of or limited operational capacity, funding constraints, absence of operational policies and procedures and nascent regulatory frameworks and governance structures. Therefore, considerable support will be required to implement the action plans set out in the roadmaps which may include funding of activities, selection and engagement of qualified staff, development of audit QA policies and regulations, and preparation of manuals and guidelines in order to fully achieve the objectives of the TA. During discussions, the PAOs have also expressed the need for technical and financial support to implement the developed roadmaps. Keeping in view the importance of operationalizing the action plans contained in the roadmaps to ensure implementation of robust QA systems, ADB will provide financing support for core activities with directly identifiable outputs. These activities will include: (i) assistance with the drafting of in-country by-laws to define the appropriate governance and institutional structure for well-functioning QA systems; (ii) preparation of operational procedures and audit manuals for QA for audit with proposed in-country audit monitoring procedures; (iii) assistance with selection of suitably qualified staff for operational QA unit and QA board; and (iv) on the ground training and mentoring. These activities will be monitored and reported to ADB and CAPA.

Output 2 relates to the development of working papers on the financial management systems of Bangladesh, Fiji, Indonesia, Myanmar, Nepal, Pakistan, Sri Lanka, and Viet Nam . The TA uses a recently produced Operational Knowledge Working Paper on the Funds Flow, Accounting, and Audit arrangements in India as a guide. The working papers will be disseminated as a tool in conducting financial management assessments during project preparation. The initial set of working papers will be published on ADBs website and will be scaled up to cover other DMCs in the region in future TA projects. Under Output 2, three draft PFM reports were sent to respective governments for endorsement. Another three draft PFM reports have undergone peer review and are currently being updated. One remaining report is due for development after concurrence from resident mission is received

Output 3 relates to the production of an e-Learning module that provides the requirements of the IPSAS Cash Basis Standards. The module uses an open-source software application that can be maintained by ADB to eliminate issues on proprietary rights and maintenance and will be hosted on ADBs website accessible by all existing and potential executing and implementing agencies, other interested DMC staff including SAIs, and private auditors. A workshop will be held to launch and promote the e-Learning module. The development of an e-Learning module under Output 3 is completed and will go through user acceptance tests in the next 2 months

The TA will be dependent on the continuous cooperation and commitment of CAPA, the PAOs, and relevant DMC staff. ADB will closely coordinate with these institutions during implementation and will monitor activities of consultants to reduce the risk and ensure completion and delivery of outputs.

ADB will be the executing agency, with OSFM acting as focal point and providing overall TA oversight and administration. OSFM will work closely with CAPA and the Resident Missions who in turn will be coordinating and guiding the consultants.

Business Opportunities
Consulting Services The TA will require a total of 48.5 person-months of intermittent consulting inputs from international and national consultants. Individual consultants have been engaged for all positions assigned to Output 2 to select the best combination of thematic experts in the shortest time. A consulting firm with experience in auditing and has substantial knowledge and experience in the 4 selected DMCs has been engaged to deliver Output 1. A consulting firm that has technical expertise in accounting and software development has been engaged to deliver Output 3.
Responsible ADB Officer Mehta, Anouj
Responsible ADB Department Operations Services and Financial Management Department
Responsible ADB Division Financial Management Unit, OFSMD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 03 Jul 2014
Fact Finding 13 Aug 2014 to 14 Aug 2014
MRM -
Approval 20 Oct 2014
Last Review Mission -
Last PDS Update 18 Jan 2017

TA 8740-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Oct 2014 - 20 Oct 2014 31 Dec 2017 31 Dec 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,206,226.00 0.00 0.00 0.00 0.00 0.00 1,206,226.00 20 Oct 2014 500,838.65

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.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 8740 20 Oct 2015 Institute of Chartered Accountants in England (United Kingdom) Chartered Accountants Hall, Moorgate Place, London, United Kingdom Asian Development Bank 250000
Capacity Development Technical Assistance 8740 15 Jul 2015 Chartered Institute of Public Finance & Accountancy (United Kingdom) 77 Mansell Street, London E1 8AN, United Kingdom Asian Development Bank 119233

Procurement Plan

None currently available.