Planning and Inadequate budget High Ensure that financing agreement binds GoM to Low budgeting appropriation for the full appropriation of loan proceeds over the life project of the project. Project Moderate Procedures to proceed with project Low implementation may implementation need to be agreed with the be delayed as a result MEPD and MOF, until such time as the project of late appropriation can be included in the estimates for Parliamentary approval. Diversion of project Moderate Protection of project funding against virement Moderate funds needs to be agreed and controls need to be established, also in the IFMIS. Overall Moderate Low Delays in recording Low Set up in IFMIS specific bank accounts, Low Accounting of transactions expenditure accounts, access controls, and reporting accounting responsibilities and reconciliation Weak audit trail Moderate Low controls for each project. Unauthorized access Substantial Moderate and unreliable data Unreliable and late Low Define project reporting requirements directly financial statements in the IFMIS, or reporting could be supported outside of the IFMIS with a template into which the required project revenue and expenditure data is exported. Non-compliance with Substantial Agree standards and format of the project Moderate acceptable accounting annual financial statements. standards Overall Substantial Moderate Treasury and Inadequate funds Low Establish authority, capacity and process to Low funds flow available timely submit withdrawal applications and the required documentation to the Bank. Unpredictability in Moderate Low the availability of funds Diversion of project Moderate A project specific bank account (designated Low funds account) needs to be opened, incorporated into Inability of Treasury Low the IFMIS, and the requisite reconciliation Low and RBM to support procedures and responsibilities need to be agreed. project banking needs No access to project Moderate End-of-year procedures for the project need to Low funds over year-ends be agreed, including treatment of project cash balances. Overall Moderate Low Internal Ineffective control Moderate Normal project expenditure procedures and Moderate control and framework and controls prescribed in the PFM Act, regulations internal audit procedures 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. Ineffective internal Substantial Agree specific internal audit requirements for Moderate audit each project, which could include scope, approach and reporting requirements. Provide Central Internal Audit Unit ( CIAU) with appropriate capacity development support. Overall Substantial Moderate External Delayed submission Low Agree specific external audit requirements for Low audit of audit reports each project, which could include scope, Low capacity and Substantial approach and reporting requirements. Provide Moderate skills at the NAO to NAO with appropriate capacity development
Planning and budgeting Inadequate budget appropriation for the project High Ensure that financing agreement binds GoM to full appropriation of loan proceeds over the life of the project. Low Project implementation may be delayed as a result of late appropriation Moderate Procedures to proceed with project implementation need to be agreed with the MEPD and MOF, until such time as the project can be included in the estimates for Parliamentary approval. Low Diversion of project funds Moderate Protection of project funding against virement needs to be agreed and controls need to be established, also in the IFMIS. Moderate Overall Moderate Low Accounting and reporting Delays in recording of transactions Low Set up in IFMIS specific bank accounts, expenditure accounts, access controls, accounting responsibilities and reconciliation controls for each project. Low Weak audit trail Moderate Low Unauthorized access and unreliable data Substantial Moderate Unreliable and late financial statements Low Define project reporting requirements directly in the IFMIS, or reporting could be supported outside of the IFMIS with a template into which the required project revenue and expenditure data is exported. Non-compliance with acceptable accounting standards Substantial Agree standards and format of the project annual financial statements. Moderate Overall Substantial Moderate Treasury and funds flow Inadequate funds available Low Establish authority, capacity and process to timely submit withdrawal applications and the required documentation to the Bank. Low Unpredictability in the availability of funds Moderate Low Diversion of project funds Moderate A project specific bank account (designated account) needs to be opened, incorporated into the IFMIS, and the requisite reconciliation procedures and responsibilities need to be agreed. Low Inability of Treasury and RBM to support project banking needs Low Low No access to project funds over year-ends Moderate End-of-year procedures for the project need to be agreed, including treatment of project cash balances. Low Overall Moderate Low Internal control and internal audit Ineffective control framework and procedures Moderate 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 Ineffective internal audit Substantial Agree specific internal audit requirements for each project, which could include scope, approach and reporting requirements. Provide Central Internal Audit Unit ( CIAU) with appropriate capacity development support. Moderate Overall Substantial Moderate External audit Delayed submission of audit reports Low Agree specific external audit requirements for each project, which could include scope, approach and reporting requirements. Provide NAO with appropriate capacity development Low Low capacity and skills at the NAO to Substantial Moderate
707620ESW0P1130ry0PFM0system0asses.docx