World Bank Financial Management Sector September 2010

Work of the FM Sector Provides assessment, design, implementation support services Supports development of sustainable FM capacity Use of country systems – the default option Project Level Provides information on country fiduciary environment & risks Supports building FM capacity Delivers diagnostics, policy & technical advice, technical & project assistance Facilitates FM learning & access to expertise Maintains & builds partnerships Supports standard setting & implementation Builds regional practices Promotes FM harmonization in improving aid effectiveness Global LevelCountry Level Bank Policies, FM Manual, & Reference Materials 180 professional staff - 70% based in country offices - working at many levels

Opportunities and Challenges FM Sector Environment Portfolio Growth Diverse Demands Fraud & Corruption Risks IL Reform Access to Information Policy Use of Country Systems FM Capacity

International strategic partnerships Delivering quality FM services in Bank-financed operations Building country capacity in FM Providing reasonable assurance on use of funds Developing FM capacity of partner countries Sound FM capacity in All partner countries Sound FM capacity in All partner countries A world free of poverty FM Sector Strategy Promoting global accounting, auditing, & related standards FM Sector Board, Committees, Working Groups, Regions, & OPCFM Bank Vision FM Vision Objectives Strategic Priorities Implementation Support Staffing and resources to deliver results

Vision Strong and capable FM systems and human resources to manage all public funds and account for the use of those funds to citizens and donors Partner for development results, fully integrated into preparation & implementation support for Bank- financed projects & capacity development efforts

Strategic Objectives Developing FM capacity of partner countries Providing reasonable FM assurance on use of funds

Strategic Priorities Delivering quality FM services in Bank-financed operations Building country capacity in FM Promoting global accounting, auditing, & related standards

Delivering Quality FM services in Bank-Financed Operations FY11-13 Strategy Focus Areas Enhancing quality of FM assurance services Increased integration with task teams Greater collaboration with Bank Sectors/Networks/CMUs Integrating the FM risk-based approach with Bank Operational Risk Assessment Framework for IL Delivering differentiated services according to country circumstances, risks, and needs Providing customized solutions & support Strengthening fiduciary practices in areas critical to good governance and anticorruption

Building Country Capacity in FM FY11-13 Strategy Focus Areas Deepening implementation of reforms and building sustainable country FM capacity Diagnostic studies, PFM improvement programs, implementation support & knowledge sharing Helping countries implement accounting, auditing, & related standards Developing professional accountancy bodies and standard- setting institutions Building country FM systems capacity & PFM professionalization Developing systems for results- based lending & decentralized FM arrangements Implementation support for ROSC A&A recommendations and country reform programs

Promoting Global Accounting, Auditing, and Related Standards FY11-13 Strategy Focus Areas Engaging in global partnerships on high-quality standards Sharing information among donors and partners Supporting regional & international professional networks Strengthening & increasing access to international standards Encouraging developing nations’ inputs to setting global standards Promoting adoption & implementation of international standards

Governance and Anticorruption Support governments to strengthen their institutional arrangements for preventing and detecting corruption Support key government agencies responsible for management and control of corruption risks Conduct analytic & advisory work Strengthen internal controls & internal audit Improve financial reporting & audit Support IFMIS developments Enhance legislative scrutiny

Implementation of the Strategy Quality assurance Collaboration and partnerships Staffing to deliver results Knowledge, learning, outreach FM Sector Board Committees & Working Groups Regional FM Units OPCFM

International strategic partnerships Delivering quality FM services in Bank-financed operations Building country capacity in FM Providing reasonable assurance on use of funds Developing FM capacity of partner countries Sound FM capacity in All partner countries Sound FM capacity in All partner countries A world free of poverty FM Sector Strategy Promoting global accounting, auditing, & related standards FM Sector Board, Committees, Working Groups, Regions, & OPCFM Bank Vision FM Vision Objectives Strategic Priorities Implementation Support Staffing and resources to deliver results Partnering for Development Results Moving Forward…