Implementation
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This document provides an overview of project implementation, financial management, and supervision. It discusses guiding principles, objectives, outcomes, roles and responsibilities of different parties. Key points include increasing understanding of implementation roles, maximizing project impact for rural poor, providing resources and guidance to support roles, and ensuring excellent fiduciary standards correlate with implementation progress and results. IFAD's supervision policies aim to strengthen dialogue, address priorities, create a learning loop between design and implementation, and enhance development effectiveness and impact.
Implementation
- 1. Title of presentation/theme Project Implementation & Financial Management Dec 2010
- 2. This presentation is based on two guiding principles . . . Overview 1. INCREASE UNDERSTANDING of roles & responsibilities in project implementation & 2. Maximize project IMPACT to benefit rural poor Guiding Principles
- 3. To Demystify Implementation & Supervision, with particular respect to Financial Management It is expected to provide you with: A sound platform to engage in implementation To share multiple materials, perspectives & ideas An opportunity to refresh skills & develop new ones Some sections may seem too detailed, too slow, or too cursory — keep going! ESA FM Resource Pack Objectives Overview
- 4. . . .and the pack is expected to achieve various outcomes ESA FM Resource Pack Outcomes Provide a common foundation for people’s work in supervision—we expect that you will continue to build on this foundation Provide in-depth resources & materials that should support different roles Guidance on where to find additional support A measure of this pack’s success will be how many people seek out additional assistance, guidance & counsel Empirical evidence shows that there is a high correlation between excellent fiduciary standards & practices and overall implementation progress & results Overview
- 5. Don’t get overburdened - organize beforehand for Implementation! Overview
- 6. “ Whenever you are in doubt…recall the face of the poorest and weakest man who you have seen and ask yourself, if the step you contemplate is going to be of any use to him? Will he gain anything by it? Will it restore him to control over his own life and destiny?...Then you will find your doubts and your self melting away.” Mahatma Gandhi Introducing Project Supervision
- 7. IFAD Action Plan is consistent with changes in international development architecture from Paris Declaration of Aid Effectiveness & “One UN” agenda . . . Harmonization & alignment Move towards: COUNTRY PROGRAMS, that use NATIONAL SYSTEMS Systematic support for nationally owned strategies Calls for more coordinated & predictable actions among development partners Increased development effectiveness & impact IFAD Action Plan Introducing Project Supervision
- 8. What is development effectiveness & impact? * For poor rural men and women to have better & sustainable access to: Natural resources (land and water) Improved agricultural technologies A range of financial services Transparent & competitive agricultural input & output markets Rural off-farm opportunities Pro-poor local & national policy processes, in which the poor can participate *IFAD’s Strategic Framework, paragraph 6 Introducing Project Supervision
- 9. What are the outcomes of development effectiveness and impact?* Direct : increased incomes & enhanced food security for rural poor Indirect : country capacities strengthened – Pro-poor policy framework. Pro–poor efficient & accountable Government Institutions Strengthened rural poor organizations & institutions Increased private sector involvement in rural economy Enhanced national & local implementation capacity *IFAD’s Strategic Framework, paragraph 7 Introducing Project Supervision
- 10. Supervision is key instrument for Impact, Sustainability & Effectiveness/efficiency of IFAD-funded projects Legal basis for policy: IFAD’s Supervision & Implementation Support Policy was approved by the Executive Board (EB) (December 2006) EB Decision to fully supervise projects (December 2006) Supervision Guidelines – prepared to facilitate implementation & guide supervision practices in IFAD Training of all levels of staff IFAD is implementing IFAD supervision . . . Enhance IFAD’s development effectiveness & IMPACT Introducing Project Supervision
- 11. Improved results under IFAD supervision Strengthen direct dialogue with stakeholders at country level Address IFAD’s priority concerns Create a learning loop between project implementation & design Evaluations of IFAD’s effectiveness & impact in the field indicated that : Supervision = “ outmoded and unsuited ”; costs are increasing (despite fewer projects) Reduced chance for IFAD to be proactive Absence of systematic learning & knowledge management Rationale IFAD had several rationales to accelerate the move to implement full supervision . . . Introducing Project Supervision
- 12. Based on the following elements: Flexible supervision arrangements IFAD’s direct responsibility for management of full supervision function Main supervision modalities. Direct and Full IFAD supervision , comprising different “blends” of: Headquarters staff Country presence staff & contracted service providers Reputable international/regional/national institutions & local partners 2. Supervision by CIs , including Direct Supervision, being reduced, but still required in some cases, but with better-specified roles for IFAD & CIs with active IFAD participation In all cases: Substantial strengthening of implementation support function IFAD responsible for Supervision in any modality Supervision Policy Introducing Project Supervision
- 13. Supervision – Administration of loans for the purpose of its disbursement & Supervision of the implementation of the project; ensures compliance with loan covenants, procurement, promoting economy & good governance Implementation Support – focuses on development impact, based on assessment of progress, embedded in an effective M&E system, joint identification of problems, agreement on suitable actions to achieve project’s development objectives, respecting safeguards Cooperating Institution or Full IFAD Supervision = whatever the modality - Supervision is IFAD’s fiduciary responsibility. Supervision Definitions Introducing Project Supervision
- 14. 1: Institutional IFAD takes direct responsibility for supervision 2: Human Adequate financial & human resources must be mobilized Strengthen capacities & processes within departments/ divisions at all levels, including dedicated training programme 3: Financial Most incremental costs covered by reduced CI payments Some incremental costs to be incurred Operational Implications of the Supervision Policy Introducing Project Supervision
- 15. Project Cycle Introducing Project Supervision
- 16. Result-based COSOP – Main instrument to pursue Action Plan goals & manage development results at country level COSOP should describe: Supervision modalities to be used & why they are most appropriate. How Supervision will improve impact, knowledge management, learning & partnerships How projects operate within specific country context Country Programme Management Team established by CPM-COSOP stakeholder members from within IFAD (e.g.: legal, finance) & in-country (e.g.: Minister of Finance, Agric., civil society) Supervision of the Country-Level Engagement Introducing Project Supervision
- 17. Government (executing agency) Ensure development effectiveness & impact Overall responsibility for project execution & implementation in accordance with loan agreement, letter to the borrower, amendments Ensure alignment with national strategies & Coordination with other development efforts Ensure fiduciary oversight , proper use of all funds Approval & supervision of AWPB Participate in supervision missions Use of government systems consistent with IFAD guidelines Responsibilities during Project Supervision Introducing Project Supervision
- 18. Project Ensure development effectiveness & impact Project implementation in accordance with financing agreement, letter to the borrower Develop AWPB , seek approval from Government & IFAD, and operate within its agreed parameters Set up procurement methods utilizing Government systems, consistent with IFAD Guidelines Develop appropriate financial, M&E other systems to ensure proper impact, operational, financial & administrative information is available Responsible for proper use of all funds utilized by projects Organise supervision missions with IFAD , prepare reports beforehand, provide all pertinent information Responsibilities during Project Supervision Introducing Project Supervision
- 19. IFAD Ensure development effectiveness & impact Ensure harmonization & alignment of IFAD’s actions in country as per Paris declaration on Aid Effectiveness Fiduciary responsibility & “general rules of engagement” for proper use of IFAD financing - on all types of supervision modalities – according to IFAD legal documents & AWPB Flexibility to reach development impact Provide implementation support Responsibilities during Project Supervision Introducing Project Supervision
- 20. CPM, Country Presence & Support Staff Ensure development effectiveness & impact Gather information & provide technical analysis Listen to borrower, stakeholders & solve problems, or convey messages to management. Sometimes good reasons exist for NOT doing what IFAD wants Ensure solutions serve broadest range of interests Fiduciary oversight, “no objections” to use of financing proceeds Who plays what role in Supervision at IFAD? (1) Introducing Project Supervision
- 21. Country Presence Ensure development effectiveness & impact Gather information from borrower & stakeholders; report & propose solutions to CPM Carry out technical analysis on portfolio & COSOP performance and provide trouble-shooting Within CPMT, represent IFAD in Donor/ Government fora to develop & strengthen partnerships, KM & policy dialogue Fiduciary oversight – monitor implementation of AWPB & general compliance with IFAD guidelines Who plays what role in Supervision at IFAD? (2) Introducing Project Supervision
- 22. Who plays what role in Supervision in IFAD? (3) Management Ensure development effectiveness & impact Approves Supervision plan & budget Take account of macroeconomic, social & political factors, as well as technical & economic aspects - for country & within the region Make decisions based on information from staff & others Post-mission letter to Government Supervision Quality Managers comment on quality of Supervision Annual Portfolio Review process: Department & IFAD-wide Introducing Project Supervision
- 23. Always keep project development effectiveness & IMPACT - benefiting rural poor - at the forefront Flexibility ! Learn rules and regulations so know how & where to be flexible . Learn from past experiences Concentrate efforts on performance improvement & demonstrable development impact–adopt a problem-solving approach Ensure project is driven by beneficiary demand , to develop stakeholder commitment Promote a participatory approach to implementation, problem solving, innovation, sharing information Establish clear objectives, guidelines, expectations reflected in AWPB Maintain IFAD’s fiduciary oversight How to get best results from Supervision Introducing Project Supervision
- 24. Monitor progress of the projects against targets, development objectives & indicators Monitor procurement made & disbursement of funds Review effectiveness of financial management system and reports Review compliance with loan covenants General Principles (1) Supervising Project Implementation
- 25. General Principles (2) Assess risks and problems to successful implementation & sustainability, & offer practical solutions Review the continued relevance of the project to the recipient country, beneficiary, IFAD development priorities; modify if appropriate Assess implementation quality, safeguard adherence & IMPACT! Do not lose sight of IMPACT on rural poor Supervising Project Implementation
- 26. Primary objective of financial management process: To optimise financial and economic benefits from investment It includes multiple processes including financial, management, assets, cash & funds accounting; financial reporting; internal controls; internal audit; external audit Priority to use national systems consistent with IFAD guidelines Objective Supervising Project Implementation : Financial Management
- 27. FIDUCIARY ROLE: What is it? “ Fiduciary” – A person who occupies a position of power and confidence with regards to the property of another that the law requires him/her to act solely in the interest of the person whom he/she represents. It is illegal for a fiduciary to misappropriate money for personal gain. Derived from Roman Law, Encyclopedia Britannica Supervising Project Implementation : Financial Management
- 28. FIDUCIARY RESPONSIBILITY How much power and confidence? How much trust? Too much trust could be risky; but distrust could be very expensive too Striking the right balance is the challenge Supervising Project Implementation : Financial Management
- 29. IFAD Loan Documents IFAD Procedures and Guidelines (Handbook/ LTB) Government procedures Project Implementation Manual Project Financial Management Manual Internal Controls Project Accounts Separate Bank Accounts Annual Audit of Accounts Reference Documents Supervising Project Implementation : Financial Management
- 30. Thank You