Session 6: Harmonizing and Aligning Financial Management (FM) Arrangements

04/21/23

•Conduct Financial Management Assessments (FMAs) jointly; start with desk review of existing; carry out well defined field work only when necessary• Establish a joint quality assurance to ensure DPs accept outputs of others•Design the FM framework, systems and arrangements together•Agree on the action plan to i) implement the proposed actions or ii) strengthen the system in place; develop a comprehensive FM Capacity Building program for mid-term•DPs to offer coordinated support to PCs during implementation of action plan•DPs to produce a model MOU which includes some standard language, some options to chose from, and a sections to be filled by FM teams•DPs to coordinate supervision/monitoring missions during implementation phase

Main Recommendations from the IHP+ Working Group

04/21/23

Steps to harmonized and aligned financialmanagement arrangements

At the request of the country, GOV-MOH and active DPs agree to proceed with FM harmonization.

FM Team with representatives from donors and government is appointed.

Small subset of FM Team (Core FM Team) collects and shares all available, relevant information.

Core FM Team conducts desk review, produces inception report, and meets with the FM Team to determine if information is sufficient.

Yes, information is sufficient. Field

Financial Management Assessment not

required, core team produces FM report

Core FM Team agrees/designs common FM arrangements, drafts MOU, and produces action plan for implementation.

No, information is not sufficient. Field Financial

Management Assessment required

See Slide 2 “Steps to Producing a Report on FM and outputs (when additional FM assessment is required)”

Government & donors complete and sign MoU for common FM arrangements.

Government implements action plan; DPs follow-up and support implementation.

Core Team verifies that the system is up and running and start disbursement .

Completed in parallel

1 2 3

45

4a

6

7

In all cases the final report shouldinclude:• Proposed action plan for systems

and capacity building • Proposed single accounting system

and Chart of Accounts• Content for single set of financial

reports• Draft ToRs for single external

comprehensive audits• Proposed draft MOU with salient

features of the Common Financial Management Arrangement.

04/21/23

Bottlenecks to Further ProgressIn order to move ahead with full FM harmonization and alignment, the following challenges must be addressed:

•Institutionalize harmonization efforts within DPs •Create focal points within DPs•PCs to joint force within MOH, MOF, Auditor General for the joint work•Country Partners to increase demand for harmonization and push back on solo work and parallel systems•Mobilizing financial support to implement action plans and coordinating TA

04/21/23

FM Assessment in Sierra Leone: Proposed Harmonization and Alignment• Align with Gov. Strategic Plan & Budget• Align Finance Administration Functions with Gov. framework/modalities –

Merge all FM functions under the DF with oversight from CMO & PS• FM system to move to IFMIS when ready• A single set of Financial reports based on Gov. Chart of Accounts• A single comprehensive Audit, coordinated by office of the Auditor General• Simplification of mechanisms & processes (already identified as part of FMA)• A comprehensive Capacity Development package to be supported by DPs