Knowledge and Experience Exchange Pr og r am (KEEP)
THE WORLD BANK GROUP EASFM
Monitoring & Control Over Activities
Vol. 1, Issue 1, Feb 5, 2013
Financial Management System Revamp Since its launch in July 2010, PRIMA II has become the corporate tool for recording and monitoring FM work on Investment Lending (IL) operations. By adopting and using the system across all Regions, the FM sector is able to provide timely interventions and achieve a consistent level of quality on all IL operations. The system is regularly used by over 170 FM Specialists, 80% based in country offices. Over 2,500 operations, including stand-alone trust funds—essentially comprising all IL operations requiring FM involvement—are at various stages of processing in PRIMA. It also keeps track of over 400 pipeline operations allowing timely input by FM staff. The system’s functionality includes recording and monitoring FM risk and performance ratings during project preparation and implementation; managing FM implementation support/ supervision planning-including monitoring timing of interventions and highlighting key issues requiring follow-up; tracking compliance with interim financial reporting by borrowers. It incorporates an automated workflow and quality assurance review process. During FY12, the main focus areas have been corrected project inventories and comprehensive project-at-a-glance screens. The Reports Package has been availed for regions to monitor their data, the system functionality, and management and exception reports. Work is in progress towards using information from the system to support development of the sector’s Key Performance Indicators. A module for monitoring the extent of use of control FM systems is being developed. The system will also provide direct linkages and information to the Fiduciary Assurance Framework currently being developed by LOA.
Milestones FY13-Q3: Add new module for audit reporting arrangements and compliance monitoring
FY13-Q3: Improve reporting
FY14-Q2: Transition PRIMA modules to Operations Portal 2. This includes Assessment of FM Risk and Performance ratings; Supervision planning & issues tracking; IFR monitoring, Use of country FM systems monitoring; QA review, Dashboard displays.
“Work is in progress towards including an Audit s reporting and compliance monitoring module in PRIMA II”, according to Moses Wasike. This will include migration of existing information from Audit Reports Compliance System (ARCS) to PRIMA. Work is underway in incorporating all the comments received from the region in the Business Requirements document circulated in November 2012 after which construction will commence. Target date of implementation is June 30, 2013. PRIMA II and ARCS integration is part of the FY2013 Fiduciary Systems Revamp-Tranche 2 project. Cristina Felix, the project manager explained that the project will upgrade and migrate PRIMA to the Operations Portal 2, provide a new framework for improved reporting, and add new functionality for audit compliance monitoring. Total capital investment for Fiduciary System Revamp is about USD2.26 million which comprises of three tranches. This system aims to improve the fiduciary functions by enhancing and integrating existing procurement and financial systems applications and related controls, and improve fiduciary monitoring and reporting at the regional and corporate level. PRIMA II is based on the old Operations Portal which is scheduled to be retired in FY14. There is a need to migrate it to Operations Portal 2, a process that should be undertaken in tandem with any further improvements, including the planned integration of audit reporting and compliance monitoring functionalities. In FY13, the FM systems and other SAP tools will begin transitioning to the new platform.
Knowledge and Experience Exchange Pr og ram (KEEP) Monitoring & Control Over Activities
Access to Information A2I: Disclosure Requirement Although the A2I took effect on 1st July 2010, it was not until 30 June 2012 when the first audited financial statements subject to disclosure have been due when it really “came to life” for FM.
The Vietnam Experience In the disclosure requirement, several issues cropped up during implementation: 1) According to the guidelines, the identification of projects with financial statements subject to disclosure is based on the date of the invitation to negotiation. However, this seems vague in some cases as nowhere in the system it is mentioned clearly the invitation to negotiation dates, and under Borrower’s point of view, this is only our internal policy, not legally binding with the Borrower. 2) FM role—do we only play a “consultation” role for the “Receiving Unit” (Sector/TTL) to ensure the right version (abridged or long) to be published,, or FM will be the key monitoring role in reminding and following up the TTL/ Sector until publication is made. 3) Who will take responsibilities in ensuring the Borrower’s disclosure: TTL or FMS? If there is failure to disclose from the government side, would there be some remedy actions that need to be applied? 4) Some consolidated audit reports will contain both projects subject to disclosure and projects not required to disclose, how do we handle this?
Elsewhere in the Region In China, four (4) audit reports have been disclosed to the public after sufficient communications with China National Audit Office (CNAO) and the Ministry of Finance (MOF). Only the first two sections of the Audit Report were disclosed, the audit findings and recommendations kept confidential. On the other hand, the Philippines will have its audit report for disclosure due by June 30, 2013.
Some Proposed Suggestions While there are still questions in the implementation, one way of confirming whether the project is subject to disclosure is to refer to the Financing Agreement and check if it is subject to the 2010 General Conditions (which includes the A2I disclosure requirement). ACS can conduct this manual review and maintain a list of projects subject to disclosure, this list confirmed with FMS. In the acknowledgement letters to projects, reminders on the publication obligation need to be included to make sure that the Borrower will fulfill their task. Going forward, the FM system should include an “early alert” module to flag all projects with audit reports subject to public disclosure (or abridged version requested) for systematic tracking.
Knowledge and Experience Exchange Pr og ram (KEEP) Monitoring & Control Over Activities
PRIMA MADE EASY This section provides tips and tricks to breeze through the system and have a fun, relaxing life!
Scenario: Your project has been extended and is in the process of securing additional financing. The original loan amount has been fully disbursed and there are no project activities. In the meantime, PRIMA alerts you for Overdue Supervision for the project. How do you modify the supervision date in the system? 1) Go to the FM Portfolio Maintenance under Administrative/Reports Functions in PRIMA dashboard.
2) Enter the project ID in the FM Portfolio Maintenance Lookup and click “Search” button.
3) Click “Change Date of Next Supervision” option located at the bottom for the new date of supervision.
Say What??!! There is the Audit Reports Compliance System or ARCS. Then there is PRIMA. What does “PRIMA” stands for? Email your answers to us and the first five to get the answer correctly will get to be crowned King/Queen of Acronyms!!
Knowledge and Experience Exchange Pr og ram (KEEP) Monitoring & Control Over Activities
Best Practice Innovations, out-of-the-box ideas that have been proven to work well and improve efficiencies. Best shared with others.
Sydney Service Account In order to respond to the clients’ needs and ensure timely review of the packages submitted by the task team members, the FM team in Sydney has established a dedicated FM lotus notes hub account (sfinancialmgmt@worldbank.org). This account is monitored on a daily basis by the assigned Program Assistant and FMSs are informed of any actionable item. In cases the project designated FMS is on mission to remote islands where access to emails is an issue, the back-up is informed to review and respond. All Bank departments and clients were advised that financial management packages requiring review by the Sydney FM Hub should be submitted to the service account with a copy to project FMS. To assist the FM team in identifying which emails should be followed-up by each FMS, all FM requests need to be addressed in the appropriate format like: Country, Project Name (Project Acronym)-Project Number: Description of Request Timor Leste, Third Agriculture Rehabilitation Project (ARP III) - P079320: Submission of IFRs for March 2010 Quarter
One of the main challenges during the introduction was getting the Hub account copied on FM matters which later on was resolved by sending out constant reminders. The office staff was also advised to ensure this account is added to all standard distribution lists. This practice has not only improved the response time but also enabled the FM team to easily access the project data like IFRs, Audits, FM Assessments, etc. in a few clicks.
The Team: Amin Saskai, Sydney Arip Syaman Sholeh, Jakarta Chenhui,Zheng Beijing Corry Huntangadi, Jakarta Lien Penaroyo, Philippines Quyen Thi My Nguyen, Hanoi