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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. 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