position on remuneration. Entity Level (MoET) same issues as S Although project FM will be No S – per country level, with staffing a mainstreamed within the MoET major concern because all senior staff FM department, a specific project in the implementing unit FM section is being established Ministry’s previously responsible for project FM therein to maintain direct have left the Ministry. responsibility for the project. In addition to a new Director of Finance to be hired for the Ministry, a Financial Comptroller level officer will be directly in charge of the project FM. Project Level risks of error arising S A great deal of useful experience No M – from the fact that this is a complex has been picked up implementing operation involving another phases I and II of the same contributing partner, with widely program. The new senior FM staff dispersed implementing units to be hired will therefore be covering multiple locations with a building on these experiences, large number of relatively small while continuing to use a parallel transactions. accounting software until such time that the IFMIS has stabilized and been assessed as adequate by the Bank. Control Risk Budgeting - the main challenge to M Annual budget preparation will be No M establishing credible budgets and based on the policy GoL’s working within budget to date has guidelines and regulations. Per related to the issue of managing current practice, the Ministry’s Maloti based contracts against a USD annual plans will be discussed with denominated Source of Funds. contributing partners to ensure congruence of purpose and that enough resources are allocated for approved activities. Accounting - the risk is that the M As government has itself declared No M accounting system may not be capable the IFMIS unfit at this stage for of producing the necessary reports in managing donor financed projects, a timely manner to effectively reliance will once again be placed monitor and manage the project. on the current software ‘FINPRO’ already in use by the project. The system is proven, and works satisfactorily for purposes of project financial management. New Ministry staff working on the project however require more training (underway at the time of the review) to be able to use the system to its fullest potential. Internal Control - the project is to be S While government policies and Yes. Production M implemented at both national and regulations will be applied of an updated
position on remuneration. Entity Level (MoET) – same issues as per country level, with staffing a major concern because all senior staff in the Ministry’s implementing unit previously responsible for project FM have left the Ministry. S Although project FM will be mainstreamed within the MoET FM department, a specific project FM section is being established therein to maintain direct responsibility for the project. In addition to a new Director of Finance to be hired for the Ministry, a Financial Comptroller level officer will be directly in charge of the project FM. No S Project Level – risks of error arising from the fact that this is a complex operation involving another contributing partner, with widely dispersed implementing units covering multiple locations with a large number of relatively small transactions. S A great deal of useful experience has been picked up implementing phases I and II of the same program. The new senior FM staff to be hired will therefore be building on these experiences, while continuing to use a parallel accounting software until such time that the IFMIS has stabilized and been assessed as adequate by the Bank. No M Control Risk Budgeting - the main challenge to establishing credible budgets and working within budget to date has related to the issue of managing Maloti based contracts against a USD denominated Source of Funds. M Annual budget preparation will be based on the GoL’s policy guidelines and regulations. Per current practice, the Ministry’s annual plans will be discussed with contributing partners to ensure congruence of purpose and that enough resources are allocated for approved activities. No M Accounting - the risk is that the accounting system may not be capable of producing the necessary reports in a timely manner to effectively monitor and manage the project. M As government has itself declared the IFMIS unfit at this stage for managing donor financed projects, reliance will once again be placed on the current ‘FINPRO’ software already in use by the project. The system is proven, and works satisfactorily for purposes of project financial management. New Ministry staff working on the project however require more training (underway at the time of the review) to be able to use the system to its fullest potential. No M Internal Control - the project is to be implemented at both national and S While government policies and regulations will be applied Yes. Production of an updated M