RING_pre_proposal_conference_ike.pptx

Aid Effectiveness The Paris Declaration on Aid Effectiveness (2005) and the Accra Agenda for Action (2008)

Some Key Elements Donors commit to:

Align strategies with partner countries.

Use country systems and procedures to the maximum extent possible.

Respect partner country leadership and help strengthen their capacity to exercise it.

Adopt harmonized performance assessment frameworks for country systems

USAID Forward Reforms started in 2010 One of the three main areas Building Local Sustainability and Partnerships by “Strengthening partner country, local civil society and private sector capacity in order to improve results and reduce the need for aid over time.”

RING

Improved livelihoods and nutritional status of households in Ghana.

Through District Assemblies and Northern Regional Coordinating Council

USAID Requirements Use of Partner Country Systems

To ensure effective use of U.S. taxpayer funds:

-Risk assessment framework -Documentation of risk and mitigation -Training of USAID staff -USAID support team in DC

ADS 220

Use of Reliable Partner Country systems for Direct Management and Implementation of Assistance Five Stages of Public Financial Management Risk Assessment Framework (PFMRAF) Rapid Appraisal Risk Assessment, analysis, mitigation and approval of country systems Project design, approval, selection of funding mechanism Negotiating agreement with government Implementation Monitoring and Evaluation

1. Rapid Appraisal

Assessment of Overall Country System Country level fiduciary risk Commitment to transparency and efficiency PFM policies and practices Accountability

May 2011

2.Risk Assessment, analysis, mitigation and approval of country systems

Entity level fiduciary risk Testing of specific PFM system Operations Internal controls Performance risks Emphasis on corruption issues Approval of country systems Risk analysis and mitigation measures

Testing of PFM system RING – before PFMRAF Organizational Management Personnel Management Procurement Management Budget and Financial Reporting Auditing Project Management Transparency and Accountability Information Technology

PFMRAF

Budgeting Systems and Execution, Internal/External Audit, Procurement Human Resources and Payroll Ordering and Payment of Invoices Information Technology Control Environment Donor Relations

3.Project design, approval, selection of funding mechanism

Will likely include risk mitigation measures Mitigated before funding Mitigated while funding with close follow up Monitored

4.Negotiating agreement with government

Could involve mitigation measures

5.Implementation Monitoring and Evaluation

Mitigation measures will be built into implementation and monitoring Goal is twofold Mitigate risks Build capacity

Current status Risk Assessment of individual government entities Performed Nov 2011 for 15 DAs; Feb 2011 NRCC Risk Mitigation plan and approval Currently two districts completed Six in progress Remaining planned

General findings PFM systems generally adequate. Some common areas for improvement:

Internal audit and ARIC IT related issues HR issues Budget management Procurement practices image2.png