Project data lacking integrity Tighten access controls, ensure segregation of and reliability Moderate Substantial duties and conduct regular system Moderate Improve record keeping and filing. Weak audit trail Substantial Moderate Moderate Overall Risk for Accounting and Reporting Moderate Substantial Moderate Treasury and Consolidation of project The designated account for the project should cash balances in the treasury High Moderate be defined in IFMIS. Moderate funds flow single account Project cash forecasts may Moderate Moderate not be timely and reliable Low Financing agreement should provide latest dates for submission of procurement and work plans. The reliability of budget Moderate Substantial Establish authority, capacity and process to disbursements to projects Moderate ensure timely submission of withdrawal applications. In-year changes to the budget Low Substantial Moderate Prohibit in-year changes in the financing agreement and PFMA to provide guidance. Inability of Treasury and Specific project bank accounts need to be RBZ to support banking Low Moderate opened and incorporated into IFMIS. needs of projects Low The likelihood of losing Project funds should be transferred to project funds if they are account of the Pay Master General commingled or unutilized at Account and allowed to automatically roll the end of the fiscal year; or, Moderate Moderate over to the next year. This can be stipulated lack of access to project Moderate in the financing agreement. funds over year-ends Overall rating for Treasury and Funds Flow Moderate Moderate Moderate Internal Ineffective control Substantial High Normal project expenditure procedures and Moderate framework and procedures or controls prescribed in the PFM Act, Control and weak compliance with regulations and other instructions will be Internal internal controls applied to the project, subject to compliance to Audit procurement arrangements agreed in the . Financing Agreement. The development and maintenance of fixed asset registers for projects needs to be agreed. Institutional arrangements Moderate High Agree specific internal audit requirements for Moderate for Internal Auditing each project, which could include scope, approach and reporting requirements. Financial independence Substantial Substantial There is a need to revise the legal framework Moderate to provide for independence and better institutional arrangement. Committees Moderate Substantial The ministry where the project resides should Moderate set up the committee-- an important effectiveness condition. Moderate Substantial Substantial
Project data lacking integrity and reliability Weak audit trail Moderate Substantial Substantial Moderate Tighten access controls, ensure segregation of duties and conduct regular system Improve record keeping and filing. Moderate Moderate Overall Risk for Accounting and Reporting Moderate Substantial Moderate Treasury and funds flow Consolidation of project cash balances in the treasury single account Project cash forecasts may not be timely and reliable The reliability of budget disbursements to projects In-year changes to the budget Inability of Treasury and RBZ to support banking needs of projects The likelihood of losing project funds if they are commingled or unutilized at the end of the fiscal year; or, lack of access to project funds over year-ends High Moderate Moderate Low Low Moderate Moderate Moderate Substantial Substantial Moderate Moderate The designated account for the project should be defined in IFMIS. Financing agreement should provide latest dates for submission of procurement and work plans. Establish authority, capacity and process to ensure timely submission of withdrawal applications. Prohibit in-year changes in the financing agreement and PFMA to provide guidance. Specific project bank accounts need to be opened and incorporated into IFMIS. Project funds should be transferred to account of the Pay Master General Account and allowed to automatically roll over to the next year. This can be stipulated in the financing agreement. Moderate Low Moderate Moderate Low Moderate Overall rating for Treasury and Funds Flow Moderate Moderate Moderate Internal Control and Internal Audit Ineffective control framework and procedures or weak compliance with internal controls . Substantial High Normal project expenditure procedures and controls prescribed in the PFM Act, regulations and other instructions will be applied to the project, subject to compliance to procurement arrangements agreed in the Financing Agreement. The development and maintenance of fixed asset registers for projects needs to be agreed. Moderate Institutional arrangements for Internal Auditing Financial independence Committees Moderate Substantial Moderate Substantial High Substantial Substantial Substantial Agree specific internal audit requirements for each project, which could include scope, approach and reporting requirements. There is a need to revise the legal framework to provide for independence and better institutional arrangement. The ministry where the project resides should set up the committee-- an important effectiveness condition. Moderate Moderate Moderate Moderate
102796-WP-P151918-Box394840B-OUO-9-Zimbabwe-Use-of-Country-Systems-Report-June-29-2015.docx