STRENGTHENING FIDUCIARY MANAGEMENT in MAPs

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Fiduciary Management in Multi-Country HIV/AIDS
Program (MAP) Lessons Learned and Future
Directions January 27, 2004- Washington DC
Challenges in Financial Management and
Reporting John Nyaga ACTafrica
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Objective

• To share with you the findings based on visits in
  the filed to MAP countries from a Financial
  Management and disbursement perspective and
  discuss the key findings and challenges with a
  view to agreeing on a way forward to that will
  accelerate implementation.

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Background

• Slow implementation of MAPs
• What obviously meets the eye is slow rate of
  disbursements and absorption of resources
• Worrisome disconnect with actual demand on the
  ground and rising rate of infection
• Analysis of the issue to identify key problems
  became necessary
• Initial pointers showed fiduciary and governance
  were key suspect. However, there could be others!
  

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Findings and Challenges

• Flow of Funds there are challenges some of
  which relate to country specific issues and
  lengthy procedures and Bank requirements (now
  resolved!)
• Accountability Variable practices applied for
  proof of expenditures by NACs and Bank (now
  resolved!)
• Capacity Gaps Human capacity and facilities is
  a major issue in many MAPs. A long term strategy
  is underway in a variety of ways
• Institutional Structures and Systems ????

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General Observations

• Slow Disbursements generally slow absorption
  capacity
• Dwindling Cash Flow over time Propensity for
  Control -National AIDS Institutions (NAC/NAS) the
  conservative urge to centralize control
• Wide Range of Needs make it difficult to
  predetermine clear eligibility check line or
  criteria for funding
• Capacity and Exposure Limitation at various
  levels

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Reporting

• Timely submission of expenditure reports from
  communities and in particular the public sector
  institutions has been slow
• NACs unable to adhere to timely reporting
• Reduced justification for release of additional
  funds
• Incomplete reports in various aspects
• Annual Financial Statements submitted late

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Challenges

• How can there be reliability with simplified
  accountability without necessarily allowing for
  abuse of resources?
• What could be done to facilitate smooth flow of
  funds at all levels? By the Government / NACs and
  by IDA?
• How can the capacity at various levels be used
  while developing it for higher tasks ?
• How to ensure reports are complete, reliable and
  timely?