Financial Management Framework Agreement World Bank United Nations
At the national level, fm staff collaborate across the WBG, as well as with international accounting and audit bodies and donor partners, to help countries build FM capacity, both in the public and private sectors. FM specialists work to help countries develop sound financial systems and practices, including a strong accounting profession, with quality financial reporting, efficient service delivery, and increased accountability and transparency in the use of public resources. The Bank`s work in FM has two closely related objectives: to help bond countries improve their financial management performance and capabilities, while promoting publicity and transparency, and ensuring adequate assurance on the use of the Bank`s loan revenues. Sound public financial management (PFM) ensures accountability and effective management of public resources and is an essential basis for improving governance and fighting corruption. Banking policy: Investment project financing defines FM agreements in IPF projects as planning and budgeting, accounting, internal control, financial flows, financial reporting and audit agreements of the borrower and the body responsible for the implementation of the project. FM agreements shall be based on the borrower`s existing institutions and systems, taking due account of the capacities of those institutions. In 2011, IFAC, the World Bank and 11 other signatories from across the Donor and Development Community signed the Memorandum of Understanding on Strengthening Accounting and Improving Cooperation (MOSAIC). MOSAIC provides a basis for a harmonized approach to increase the capacity of professional audit bodies and improve the quality of financial management systems in emerging countries. The Public Financial Evaluation and Accounting Programme (PEFA) is a multi-donor partnership that assesses the state of public expenditure, procurement systems and financing systems of countries and develops a series of reform and capacity-building measures. The funds shall be disbursed against the satisfactory implementation of a programme of policy and institutional measures to stimulate growth, including the maintenance of a satisfactory macroeconomic framework and compliance with the conditions for the release of tranches. The borrower undertakes to use the appropriations of the development policy only for eligible expenditure.
The bank normally pays the proceeds of the loan into an account that is part of the country`s official foreign exchange reserves (normally held by the central bank) and an amount corresponding to the proceeds of the loan is credited to a government account to finance budgeted expenditures. The Standards and Codes Compliance Reports (ROSC) are a joint initiative of the World Bank and the International Monetary Fund (IMF) that helps member countries strengthen their financial systems by improving compliance with internationally recognized standards and codes, such as International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). The ROSC Accounting and Auditing Module (ROSC A&A) assesses the robustness of a country`s accounting and auditing standards and practices as well as the strengths and weaknesses of its institutional framework to support quality financial reporting. This review contributes to the country`s capacity building plans, helps policymakers support the development of the business sector, and helps investors assess the reliability and transparency of companies` financial reporting. Throughout the life of the project, fm specialists work with the country`s borrower in task teams to ensure sound management of funds and accountability for project resources in order to achieve desired development outcomes. . . .