Role of LAF in projects with new implementation modalities TRAINING LAF 2009

Content The role of the LAF Preparation phase Start-up phase Implementation Phase 5. Will we be able to play this role? 6. Develop your knowledge 7. Means 8. Conclusion Training LAF 2009

1. The Role of the LAF What will be our role? What tasks do we have to do? What do we have to control? Will it be much different from what we are doing now? What will be the distribution of tasks between the representation and headquarters? -> Questions going through your heads Explorative After citing these questions : separate group into smaller groups of 4 persons Let them brainstorm about their role in projects with new implementation modalities (30) Let them write it down on cards. List all the answers on the wall and go through them briefly (15) Training LAF 2009

1. The role of the LAF – Key Roles Classic projects Control accounting reports and supporting documents Analyse quarterly financial planning Budget follow-up based on BTC-reports Control cash calls of projects Verify respect of BTC procedures … Projects wth new modalities Analyse financial reporting of partner organisation Manage implementation conventions Verify cash request of partner institution Monitor risks Manage audits … Training LAF 2009

1. The role of the LAF Preparation phase Start-up phase Implementation phase The role of the LAF will vary from project to project and from country to country The role will also depend on the competences of LAF In this presentation we give an overview of what can be the role Training LAF 2009

2. Preparation Phase Provide support to formulation team in the definition of financial modalities (systems / responsabilities) Provide information (documents, contacts, your knowledge) for analysis Describe processes of partner organisation Contract local expert public finance management Give feedback about analysis and financial modalities Training LAF 2009

3. Start-up Phase Provide support in drawing up implementation conventions Monitor the implementation of the modalities (e.g. inscription in the national budget, first cash request, ….) Assist in the recruitment of financial staff Provide support in the set-up of the financial organisation of the project (e.g. procedures) – define what support is needed Verify first cash request Learn about the organisation Training LAF 2009

4. Implementation phase Verify financial reporting (monthly, quarterly) and make report on it for Resrep (transmit financial reporting to country team) Do reports comply with stipulations in agreements? Is information correct? Are expenses eligible (foreseen in budget)? Are the funds properly accounted for? Are funds used in an efficient way? Are budget constraints respected? Was reporting in time? Why not? Training LAF 2009

4. Implementation phase Verify cash request from partner organisation and make report on it for Resrep and HQ Have we received all the necessary documents? Is information correct? Have conditions been met? Was cash request in time? Training LAF 2009

4. Implementation phase Verify requests for budget changes from partner and make report on it for Resrep and HQ Is procedure according to convention respected? Is information correct? Is budget change feasible? Training LAF 2009

4. Implementation phase Monitor implementation conventions / modalities of DTF and report on it Are financial aspects of conventions respected? Why not? Are changes needed? Assist in drafting addendums Keep follow-up table of conventions Training LAF 2009

4. Implementation phase Manage audits Assist in drawing up terms of references Brief audit team Read audit report and provide feedback to RC/MAF and RR Assist in drawing up action plan Monitor action plan Keep follow-up table of audits and action plans Training LAF 2009

4. Implementation phase Monitor risks and evolutions at partner organisation and report on it What has been changed / improved at the partner institution (procedures, organisation structure, …)? What were the results of audits done by other donors or Court of Audit? Update list of risks Training LAF 2009

4. Implementation phase Prepare BTC financial reporting Register disbursements in FIT Make financial planning based on reports of partner Register cash call Register budget changes in FIT Training LAF 2009

4. Implementation phase Assist in the management of capacity building efforts of the project Provide input to consultants Monitor the impact Training LAF 2009

5. Will we be able to play that role? Do we have the necessary knowledge? Do we dispose of the tools? Will we receive support? Will we have enough time? Do we have the mandate to do so? -> Questions going through your heads Training LAF 2009

6. Develop your knowledge (1) You have to know : how the financial management and procurement of the public sector in your country works how the financial processes of the partner institution are organised and what are their main strengths and weaknesses You do not have to be an expert but you need to have a good understanding of the laws, procedures, reports, systems Training LAF 2009

6. Develop your knowledge (2) What elements : Central level – Decentral level (districts, provinces, …) Budget definition and execution Cash management Accounting and financial reporting Procurement Audit Training LAF 2009

6. Develop your knowledge (3) How to acquire this knowledge : Provide support in formulation Read reference documents Follow basic training on the practical aspects of the financial management in the public sector in your country Follow stage in partner organisation or visit organisation Learning by doing Training LAF 2009

6. Develop your knowledge (4) How to acquire this knowledge : Draft personal development program with ResRep and Regional Controller / MAF for the coming years The timing and the extent of the knowledge development will depend on the project portfolio of your country Training LAF 2009

7. Means Tools Examples of conventions Examples of ToR for audits Follow-up tables (conventions, audits) Procedures (conventions, fund transfer, …) Guidelines for risk monitoring Training LAF 2009

7. Means Support of Regional Controller and MAF Coaching / feedback Regional Controller/ MAF will be involved in formulation phase Regional Controller / MAF will take the lead in conventions and audits Support missions Support of expert financial modalities / Regional Controller audit Training LAF 2009

8. Means Time Gradual evolution Difficulty : manage classic projects and projects with new modalities Set clear priorities in country action plan + rolling action list Training LAF 2009

8. Means Evolution of function Change in function description Will vary from country to country Training LAF 2009

8. Conclusion An opportunity to Investment needed explore new fields develop new competences do other tasks contribute to more aid effectiveness Investment needed Training LAF 2009