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Discussion on Financial Reporting

Display Date: 10/10/13

This space is created for the FM Forum Asia Pacific participants to share their ideas, queries and anlaysis of IFAD Financial Reporting and other related issues.
The questions will be answered by Finance Officers Md. Abodu Boussalem, Mr. Claduio, Mr. Dario, and Ms. Irene.
Please feel free to use this space for sharing your relections, ideas and asking queries. 

Thank you.

Hello all participants,

I am Vuthirith Ouk the Project manager for IFAD funded Rural Livelihoods Improvement Project (RULIP) - Cambodia.

I am very impressed with this IFAD Financial Management Forum here in Bangkok through the interaction with different people from different projects and countries.

This forum is helpful and fruitful event that brings the project accountants, project managers, IFAD staff from controller office as well as consultant to do the presentation and exchange their respective experiences from different context.

As we are with the same IFAD family with the common objective for combating poverty of the rural poor, the 2nd day of the session in this morning the forum discussed the following topic on Project Financial Statements, the Accounting Software and Reporting and Audit Tracking System (ARTS). It is noted as follows:

Project Financial Statements:

- The Financial Statements must be well prepared for auditor and IFAD
- IFAD can accept the national audit if the minimum disclosures are provided
- Accounting bases:
--Cash basis and modified cash basis
--Modified accruals and accruals
- Monthly accounting/reporting:
--Income/expenditure statement
--Special Account/Designated Account and bank reconciliation
--Fixed asset
--WA registration (received/claimed)
- Form of financial statement with simple template
- Make declaration on the best knowledge to the financial statement which sign by finance officer and project manager/project director
- The financial statement will pass to auditor for giving their opinion on it
- In practice the projects did this but with different forms
- The financial statement shall reporting by component and cost category
- IFAD would suggest the project download and customize the software and this financial statement form strongly recommended by IFAD
- The reconciliation between the project's book and IFAD's book (the transaction report), what is the different and contact IFAD for explanation
- The comparison between planned budget and actual expenditure (the connection between budget and cost category) and the explanation must be made to the variation with the reason due to the project design put estimation by not reflecting the reality
- The project can bring the information from the system put into this form of financial statement
- Note to the financial statement also important by which the project should list its accounting system, budget, cash details, government contribution and other donors
- IFAD do also the analysis of the quality of financial statement and audit report
- The example of best practice for financial statement from Kenya is good practical format for the other projects to look at and adopt for future financial statement submit to IFAD in the upcoming reporting period

Accounting Software and Reporting:

- The software can link between expenditures by component and category
- The Withdrawal Application can also generate from the system
- The Withdrawal Application can send to IFAD by physically (hard copy) or electronically
- CPM will certify on Withdrawal Application before send to controller office and treasury office for disbursement
- Email to IFAD to access the WATS
- In Cambodia context for TSHHP project under the co-financing by ADB and IFAD, so the Withdrawal Application here is not in this WATS system as project through Ministry of Economy and Finance submit the Withdrawal Application to ADB for review and onward to IFAD for disbursement

The Audit Tracking System (ARTS)

- The system automatically remind
- Upload all audit reports to the system
- IFAD review the quality of audit report with ARTS matrix

At the same time the question and comment/suggestion from the floor:

Suggestion 1:

It is helpful and useful if IFAD team can share to participants the form of project financial statement presented by Claudio

Suggestion 2:
It is helpful and useful if IFAD team can share to participants the practical financial report used by Kenya.

I do hope that our friends from different project and countries will share their understanding the same.

Posted on 10/10/13 10:01 AM.


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