|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.