single entry recording system to an interim accounting system that is now used to prepare budget outturn reports. The interim system provides a foundation for migrating to IFMIS that will eventually handle all the accounting and recording for the consolidated funds with arrangements to capture and report on donor-funded projects. A PFM Law and its enabling regulations and manuals are being prepared in order to further strengthen the legal and regulatory framework. In the area of procurement, the Public Procurement and Concessions Commission (PPCC) Act came into force on January 16, 2006, as first significant step towards Liberia’s subjecting public sector contracts to transparency and meaningful competition. These measures in financial management and procurement will put in place appropriate structures and processes to promote transparency and accountability and mitigate the fiduciary risk in utilizing public funds both at the country and project level. Project Risk Assessment and Mitigation The Risk Assessment and Mitigation table below shows the results of the risk assessment from the Risk Rating Summary. This identifies the key risks that MOE may face in achieving the CF objectives and provides a basis for determining how they should be addressed. Type of Risk Risk Risk Mitigating Residual risk Conditions Rating Measures/Remarks rating for Negotiation or Effectiveness (Yes/No) Inherent Risk Country Level The PEMFAR assessment H This risk is being addressed through S No conducted in 2007 identified the various support by the Bank and weakness in the country other donors to enhance the public financial management systems financial management system with specific reference to through the various financial internal audit, external audit, management reforms the legal and regulatory preparation of the financial framework, budgeting , management act, public procurement procurement and concession act, setup of cash management and cash and debt committee, interim commitments management. control systems, and budget committee. Entity Level Though the MOE is currently H The PFMU shall be used to support S No implementing the pooled fund the project by providing financial (UNICEF/Soros) for which the management services to MOE. To Bank (though the EPDF) this end MOE will execute a MoU provides financial and with PFMU for these services in a technical support, the MOE manner similar to the education does not have hands-on pooled fund. experience in managing WB- funded projects; it has Additionally, the oversight role of inadequate capacity to the Bank through prior review,
single entry recording system to an interim accounting system that is now used to prepare budget outturn reports. The interim system provides a foundation for migrating to IFMIS that will eventually handle all the accounting and recording for the consolidated funds with arrangements to capture and report on donor-funded projects. A PFM Law and its enabling regulations and manuals are being prepared in order to further strengthen the legal and regulatory framework. In the area of procurement, the Public Procurement and Concessions Commission (PPCC) Act came into force on January 16, 2006, as Liberia’s first significant step towards subjecting public sector contracts to transparency and meaningful competition. These measures in financial management and procurement will put in place appropriate structures and processes to promote transparency and accountability and mitigate the fiduciary risk in utilizing public funds both at the country and project level. Project Risk Assessment and Mitigation The Risk Assessment and Mitigation table below shows the results of the risk assessment from the Risk Rating Summary. This identifies the key risks that MOE may face in achieving the CF objectives and provides a basis for determining how they should be addressed. Type of Risk Risk Rating Risk Mitigating Measures/Remarks Residual risk rating Conditions for Negotiation or Effectiveness (Yes/No) Inherent Risk Country Level The PEMFAR assessment conducted in 2007 identified weakness in the country financial management systems with specific reference to internal audit, external audit, legal and regulatory framework, budgeting , procurement and concession and cash and debt management. H This risk is being addressed through the various support by the Bank and other donors to enhance the public financial management system through the various financial management reforms the preparation of the financial management act, public procurement act, setup of cash management committee, interim commitments control systems, and budget committee. S No Entity Level Though the MOE is currently implementing the pooled fund (UNICEF/Soros) for which the Bank (though the EPDF) provides financial and technical support, the MOE does not have hands-on experience in managing WB- funded projects; it has inadequate capacity to H The PFMU shall be used to support the project by providing financial management services to MOE. To this end MOE will execute a MoU with PFMU for these services in a manner similar to the education pooled fund. Additionally, the oversight role of the Bank through prior review, S No
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