identified in the accounting and qualified private audit firm will perform auditing professions in Yemen. quarterly reviews on the project Interim Financial Reports (IFRs) and annual audits of the Project Financial Statements (PFS). Project Financial Management Risks Risk Comments/ Risk Issue / Risk Before Mitigating Measures (MM) After MM MM Implementing Entity The implementing entities are Substantial The and PWP have proved their ability to Moderate currently responsible and have successfully manage IDA-financed projects managed in the past several projects. and have strengthened their staff capacity This has provided the units with to manage more than one project. Civil knowledge about IDA guidelines and Works (CW) will be implemented by PWP procedures. which has a successful track record in such implementation under current and prior IDA projects. Flow of funds has been simplified to have two advances disbursed to the PAU's DA. The and PMU will utilize their accounting system which is able to record and report funds by source & use of funds as well as by category and activity. Project receipts and disbursements will be reviewed on quarterly basis through the quarterly IFRs. Continuous support through the World Bank field office will be provided. Staffing Staff capacity to manage several Substantial The project implementation is ring fenced. Moderate projects concurrently. The current FM staffing is deemed adequate to manage the ongoing projects as well as the FTI III. Assigned FM staff within the PAU and PMU have TORs which were cleared by IDA, and have previous experience in IDA projects. The has a qualified and experienced FM supported by 2 chief accountants and 6 other accountants, in addition to one senior internal auditor who will be supported by an internal auditor staff (currently vacant position). This position will be filled within two months of project effectiveness. Moreover, PWP has a qualified and experienced FM supported by 1 chief accountant and 5 other accountants, in addition to an internal audit manager and an internal audit staff. Information System
identified in the accounting and auditing professions in Yemen. qualified private audit firm will perform quarterly reviews on the project Interim Financial Reports (IFRs) and annual audits of the Project Financial Statements (PFS). Project Financial Management Risks Issue / Risk Risk Before MM Comments/ Mitigating Measures (MM) Risk After MM Implementing Entity The implementing entities are currently responsible and have managed in the past several projects. This has provided the units with knowledge about IDA guidelines and procedures. Substantial The and PWP have proved their ability to successfully manage IDA-financed projects and have strengthened their staff capacity to manage more than one project. Civil Works (CW) will be implemented by PWP which has a successful track record in such implementation under current and prior IDA projects. Flow of funds has been simplified to have two advances disbursed to the PAU's DA. The and PMU will utilize their accounting system which is able to record and report funds by source & use of funds as well as by category and activity. Project receipts and disbursements will be reviewed on quarterly basis through the quarterly IFRs. Continuous support through the World Bank field office will be provided. Moderate Staffing Staff capacity to manage several projects concurrently. Substantial The project implementation is ring fenced. The current FM staffing is deemed adequate to manage the ongoing projects as well as the FTI III. Assigned FM staff within the PAU and PMU have TORs which were cleared by IDA, and have previous experience in IDA projects. The has a qualified and experienced FM supported by 2 chief accountants and 6 other accountants, in addition to one senior internal auditor who will be supported by an internal auditor staff (currently vacant position). This position will be filled within two months of project effectiveness. Moreover, PWP has a qualified and experienced FM supported by 1 chief accountant and 5 other accountants, in addition to an internal audit manager and an internal audit staff. Moderate Information System