2004 Annual Meeting eThekwini, South Africa November 4-5, 2004 Cities Alliance Consultative Group

2004ANNUALMEETING Fiduciary Management of Cities Alliance Grants  Why Fiduciary Management Procedures?  Increase in volume of grants  More grants now directly executed by local authorities, NGOs, and other recipient organisations  Consequent strengthening of procedures, controls and capacities at the Cities Alliance Secretariat

2004ANNUALMEETING Fiduciary Management Procedures  World Bank and UN Habitat executed Grants  Reliance on the institutional systems and procedures of the respective institutions  Recipient Executed Grants  More reliance on Cities Alliance Secretariat’s Financial Management Procedures

2004ANNUALMEETING Grant Recipient: Fiduciary Assessment  Initial Assessment  Organizational Structure  Accounting Systems and Procedures  Internal Controls  External and Internal Audits  Procurement Procedures  On-site Review (large grants)  Fiduciary Assessment Report  Risk Analysis  Action Plan for Improvement, if necessary, developed with Recipient (capacity building)

2004ANNUALMEETING Grant Recipient: Fiduciary Assessment (contd.)  Partnership Agreement  Tranche Payments  Disbursement Conditions (Deliverables)  Grant Agreement structured so that all Implementing Partners may sign (e.g.: Joburg-Addis Ababa Partnership Program)

2004ANNUALMEETING Cities Alliance Secretariat: Financial Supervision  Review of Quarterly Financial Reports  Monitoring Action Plan for Implementation  On-site visits (as appropriate)

2004ANNUALMEETINGLessons  Key lessons  Two-way learning process  Recipient execution facilitates client ownership and financial capacity  Enables more effective monitoring of project implementation (both financial and operational)  Quality of reporting often better than with multi-lateral execution

2004ANNUALMEETINGHttp:// eThekwini, South Africa. November 4-5, 2004