1. Canadian International Development Agency Agence canadienne de développement international 20 th International Conference on New Developments in Governmental Financial Management Examining Achievements and Exploring Opportunities CIDA Financial Management Practices in the Context of Aid Effectiveness Presentation by Dominic Bourcier Senior Financial Management Advisor, Africa Branch May 8, 2006 Canadian International Development Agency: From Controlling Budgets and Expenditures to Managing for Results

2. Canadian International Development Agency Agence canadienne de développement international Financial Management of Bilateral Programs Prior to Aid Effectiveness CIDA-led programming agenda Aid channelled to “traditional” recipients Non-governmental organizations (NGOs) Multilateral organizations (e.g. UN agencies) Standardized financial management regulations and procedures Well-defined framework for engaging with partners

3. Canadian International Development Agency Agence canadienne de développement international The New Aid Effectiveness Context Commitment to principles of aid effectiveness Partner country-driven development agenda Partner countries receive and manage donor funds Harmonization and alignment of donor practices and requirements Increasing use of partner country systems and processes – public financial management Monitoring of donor and partner country performance through indicators

4. Canadian International Development Agency Agence canadienne de développement international Adapting to the Changing Environment Modifications to CIDA’s current financial framework Creation of Africa Branch “SWAT Team” Adherence to a harmonized framework for risk assessment, disbursement, reporting, audit & evaluation Participation in joint assessment and monitoring processes between donors and partner country governments

5. Canadian International Development Agency Agence canadienne de développement international Implementing New Financial Assessment Tools Range of assessments used to evaluate PFM capacity and performance: e.g. CFAA, PER, RoSC PEFA PFM Performance Measurement Framework Standardized approach to assess PFM performance over time Joint tools for assessment e.g. Annual joint review

6. Canadian International Development Agency Agence canadienne de développement international Many Challenges Remain Fulfilling our fiduciary obligations while advancing on aid effectiveness Adequate resources with appropriate skill set (i.e. financial management capacity) Complexity of jointly assessing government-wide practices and systems Adjusting to partner country absorption capacity Managing results expectations

7. Canadian International Development Agency Agence canadienne de développement international Next Steps Development of a new CIDA policy on fiduciary risk for program-based approach Implementation of an integrated risk assessment framework Strengthening the financial management capacity of our overseas personnel