Auditor selection

An executing agency for an ADBADB source: financed project is to have the project Imprest Accounts http://www.adb.org/Statistics/default.asp accounts and financial statements, and, The imprest fund procedure is one World Bank source: where required, those of the executing where ADB makes an advance http://web.worldbank.org/WBSITE/EXTERNAL/DATAS agency itself, audited each fiscal year in disbursement from the loan account for TATISTICS/0,,menuPK:232599~pagePK:64133170~pi accordance with the agreed upon deposit to an imprest account (the PK:64133498~theSitePK:239419,00.html auditing standards by independent Account) to be used exclusively for United Nations source: auditors whose qualifications, http://unstats.un.org/unsd/demographic/default.htm ADBs share of eligible expenditures. experience, and terms of reference are Guidelines and procedure on the acceptable to ADB. OM J7-p6 Sample paragraphs for RRP establishment and maintenance of appendices imprest account is available in the Requirements on Auditing Standards Cost Estimates Loan Disbursement Handbook. read and Auditor Engagement in ADB Financing Plan more Projects states that although borrowers Implementation Arrangement are responsible for auditor selection, Financial Accounting and Disbursement Arrangement appointment and performance.. Reporting Accounting and Auditing Arrangements auditors must be acceptable to ADB. To ensure that ADB receive accurate Anticorruption read more (5.4.2) and timely financial information, the Financial Analysis Handbook for Borrowers on the Financial Evaluation EA Treatment of ADB Grants Financial Management and Analysis of Financial Management The grant is recognized as income over Projects should be given to the the period necessary to match them with Annual Project Accounts and executing and implementing agency the related costs, for which they are Financial Statements together with the sample audit letter as intended to compensate, on a The Annual Project Accounts (APA) provided in the PAI 5.09. systematic basis, and should not to be may comprise a Statement of Receipts credited directly to equity. [IAS 20.12] and Payments (Cash Flow Statement). Links Links Links Links Links Link A checklist was made available in the With reference to the Financial intranet to assist in the review of APA. RSCG Management and Analysis of Projects, Project reporting requirements will Financial Management Stand-alone tools for the purpose of WACC computation, Link to FM CoP database (C3) usually be specified in the RRP and in grant funds provided to the project also the loan agreements. The component have an opportunity cost. As such, it is Treasury parts of the APA should be specified. proposed that grants be treated in a ADB Indicative Lending Rates LBL The APA should include: (a) a summary similar fashion to equity and the cost of Inflation rates of funds received showing ADB funds, grant be assumed to be the cost of World Bank Prices and Rate any cofinancing and counterpart funds equity (3.5.2). ADB Loan Charges as of Dec 2007 separately; (b) a summary of Treatment of Surplus loan funds expenditures shown under the main CTLA Surplus loan funds, if any, should, in project components and by main CTLA loan amortization calculator principle, be cancelled as soon as they categories of expenditures (as Local currency converter are identified during implementation and referenced in loan and appraisal ADB Loan Products upon completion of the project. At the documentation) for the year ending 31 Update on ADB lending products request of the borrower concerned, December 20xx and cumulative IEI Staff Instruction on Cost Sharing and however, ADB may agree to the use of expenditures on the Project to date; and Eligibility of Expenditures surplus loan proceeds for purposes that (c) statement of fund balance as of 31 Sub-sovereign non-sovereign Public Sector are in accordance with the broad December 20xx. read more Financing Facility objectives of the project. OM H6, PAI Annual Financial Statement basically Local Currency Loan 5.05 and PAI 5.06, comprise: (i) Statement of Accounting ADB Projects guides and procedures Policies; (ii) Statement of Financial Economic valuation of social Operations Toolkit Performance or Income Statement; (iii) projects e-handbook Statement of Financial Position or There are number of resources available Disclosure Management System Balance Sheet; (iv) Statement of that provide Statistics on current Changes in Equity; (v) Statement of

economic, financial and social data as follows:

Cash Flows; and (vi) Notes to the Financial Statements. read more

For more information: contact RSCG-FM or e-mail to clfrancisco@adb.org

VOLUME 1