1. Financial Management for Africa Centers of Excellence Project
[ACE I and ACE II]
Workshop
Accra, November 7-10
Africa Region

2. Outline Overall FM Status Project Design including Flow of Funds
Reporting and Auditing Requirements
Financial Management (FM) related Disbursment Linkded Indicators (DLIs)

3. Financial Management Status (as of November 7)
Indicators
ACE I
ACE II
FM Risk
Moderate
Substantial
FM Performance
Moderately Satisfactory
Percent Disbursed
47%
17%

4. Project Design and Funds Flow

5. Project Design and Funds Flow
From results to disbursement…..
ACHIEVEMENT OF DLIs/DLRs
DISBURSEMENT (First disbursement)
IMPLEMENTATION OF ACTIVITIES

6. Financial Reporting Requirements
Schedule 2. Section II. B. 2 of the legal agreement requires the submission of:
Unaudited Interim Financial Reports
Sources and Uses of Funds
Statement of EEPs
Purpose
Monitoring the implementation each ACE’s approved Implementation Plan (and annual work plans).
Report the eligible expenditures (as defined before) incurred during the reporting period, and which are going to be used to support of the withdrawal of funds upon achievement and independent verification of the DLIs/DLRs
Content
Sources and Uses of Funds. Sources: Include funds received by the ACE from the WB, Government funding (if applicable) and Student fees (if applicable and separately accounted for). Uses of funds: Expenditures classified by major activity of the ACE/Project Implementation Plan (which should be consistent with Annual work plan)
Uses of funds. Expenditures classified by activities of the Project Implementation Plan of each ACE (consistent with the activities listed in the Annual Work Program). This report should include a comparison of the actual vs amount planned for the CY or agreed period.
The EEP Statement should list the EEPs – selected budget lines- defined for each ACE/University, including: Salaries, [non-procurable] operating costs and/or others.
Annex
Periodicity
Semi-annual
Due Date
45 days after the end of the Semester

7. Reporting Requirements
Current practice
Interim Financial Report to meet IDA reporting requirements
Separate EEP Statement for disbursement
Options going forward
Option 1 – Continue current practice
Option 2 - Combined Interim Financial Report and EEP Statement
Part – I
Sources and Use of Funds
Uses of Funds by PIM
Part – II
EEP Statement with evidence of linkage to
budget lines and
budget execution reports

8. Audit requirements ACE II
Audit report of the university financial statements which would ensure that the EEPs are audited
Audit report of the ACE Project Financial Statements that would ensure that resources received under the project are audited as well as the activities agreed with in the project implementation plan
Audit report should be submitted normally within six months
ACE I
Audit of Project Financial Statements of the ACE are required by June 30 of each year for the previous calendar year
Scope: all project sources and uses of funds and the EEPs (ACE ensures audit TORs include the review and validation of of the EEP Spending Report ;

9. Financial Management (FM) Disbursment Linked Indicators (DLIs) Verification Protocols – example
DLR Description
Protocol
DLR 3.2: Functioning Audit Committee under the university council.
For the first withdrawal application requesting funding for this result:
Guidelines/ ToRs for the audit committee constituted under the governing body of the university
Members of the audit committee
Evidence (report or minutes of meeting) that the Committee has met and discussed the audit for the ACE, the committee’s role in the project, and risks associated with the project.
For subsequent withdrawal applications:
Evidence (report or minutes of meeting) that the Committee has met and discussed the external audit for the ACE, any internal audit reports, and following up on issues raised to ensure management’s attention and correction.
If changes to the Guidelines / ToRs have been made, the revised ToRs or Guidelines should be included.
Note, the Audit committee should in principle carry out an institutional review of the audits and follow-up. However, the term functioning will be interpreted only regarding review of the ACE part of the university.
Source: Table 3 of Operations Manual – ACE I

10. FM DLI Results – ACE I Experience
Results for 2016 Calendar Year verified in 2017
Overall Percent earned: 49%
DLIs with lowest score: 3.2 on Functioning of Audit Committee
DLIs with hightest score: 3.1 on Timely submission of Withdrawal Application
Summary
DLR 3.1: Timely Submission of WA
DLR 3.2: Functioning Audit Committee
DLR 3.3: Functionning Audit Committee
DLR 3.4: Transparency
DLR 3 Payout (in SDR)
Total Earnnings
363,000
49,500
148,500
709,500
Potential Earnings
1,452,000
Percentage Earned
100%
14%
41%
49%

11. FM DLI Results – ACE I Experience
Results by Country/ACE – Top Performers
Country`
ACE
Projected DLR Payment (in SDR)
Percent achieved
Benin
Université d’Abomey – Calavi (UAC)
66,000
100%
Togo
University of Lome
Ghana
University of Ghana – West African Centre for Crop Improvement
49,500
75%
University of Ghana – West African Centre for Cell Biology of Infectious Diseases
Kwame Nkrumah University of Science
Nigeria
Redeemers University
Bayero University, Kano, Nigeria 

12. FM DLI Verification – ACE I Experience
Challenges
Timeliness of results - lengthy verification process delays disbursments
Availability of information on ACE websites for transparency DLR(3.4)
Overdue audits has multiple implications on project performance
Functioning of audit committee is critical to demonstrate that governance arrangements within ACEs and host universities are working effectively
Going Forward
Strict adherence to the timeline – August 15–September 30
Improve design and robustness of ACE websites to ease navigation and online search ( )
Timely updates to the websites to achieve DLR on transparency
Establish and/or reinforce audit committees at the university level
Establish and/or reinforce internal audit unit at the university level

13. Thank you for your attention
Questions and Answers
Thank you for your attention