The Executive Directors shall be authorized by the Board of Governors to adopt such regulations and other regulations, including financial regulations, as are necessary for the management of the Bank`s business. The rules and regulations thus adopted and their amendments will be considered by the Governing Council at its next annual meeting. Within the CPF, Financial Management (FM) specialists focus on key elements of PFM, fiduciary risk management strategy, financial reporting (CFR) and accounting and audit architecture to assess their impact on the achievement of the CPF`s objectives and the fiduciary insurance environment in which the bank`s lending will take place. World Bank financial management staff actively collaborate with colleagues from other development partner organizations, including the Multilateral Development Banks (MDBs), the International Organization of Supreme Audit Institutions (INTOSAI), the International Federation of Accountants (IFAC), and the United Nations (UN) family, when working on policy and institutional issues. FM operations. The goal of these partnerships is to take a coordinated approach to FM policies, procedures and practices within the framework of the Global Harmonization Initiative. Banking policy: Investment project finance defines FM agreements in IPF projects such as planning and budgeting, accounting, internal control, cash flow, financial reporting and audit agreements of the borrower and the agency responsible for implementing the project. FM provisions shall be based on the borrower`s existing institutions and systems, with due regard to the capacity of those institutions. The ROSC Accounting and Auditing Module (A&A ROSC) 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 high-quality financial reporting. The review provides information on the country`s capacity-building plans, assists policymakers in supporting the development of the corporate sector, and helps investors assess the reliability and transparency of corporate financial reporting.
(f) The Executive Directors may, by regulation, make appropriate arrangements stipulating that: (i) any Director and Deputy Executive Director who, at the request of the President, provides certain services to the Bank shall be entitled to equitable remuneration for expenses incurred in the performance of those services; (ii) Each Executive Director and Deputy Executive Director, but not a temporary Deputy Director, shall be entitled to appropriate leave and relocation allowances, with due regard to the time spent with the Bank. (iii) Each Executive Director or Deputy Executive Director shall be entitled to reimbursement of reasonable expenses incurred in connection with official banking operations in receiving senior government or central bank officials or eminent representatives of the academic, public or private sectors of the nominated, elected or appointed countries. Allowances granted under this Sub-Section shall be in addition to the quotas provided for in subsection (e)(i) of this Section. In accordance with the Bank`s operational principles and procedures, FM specialists work with partner countries to design financial management and disbursement modalities and to monitor and support the implementation of Bank-financed operations. The Bank`s current portfolio includes more than 1,600 active projects with commitments of over US $220 billion. Knowledge of the country`s institutional framework for public financial management (PFM) is gained through diagnostic assessments of the bank, donors and national institutions, as well as experience in portfolio implementation. This knowledge helps identify fiduciary risks for Bank-supported programs and the use of development funds, and determines the extent to which the Bank can rely on national institutions or require other project-specific arrangements. Diagnostics fuel efforts to improve system design and performance. The Working Group on Harmonization of Financial Management (FMHWG) is composed of representatives from five multilateral development banks (MDBs): World Bank (current Chair), African Development Bank, Asian Development Bank, Inter-American Development Bank and Islamic Development Bank. The group meets quarterly to promote the harmonization of its financial management policies and practices and to operationalize the development effectiveness agenda. The group also focuses on promoting cooperation in FM diagnostics, financial reporting and auditing, fiduciary risk assessment, FM capacity building in client countries, and use of countries` public financial management systems. The Bank`s financial management work has two interrelated objectives: to help borrowers improve their financial management performance and capacity, while promoting disclosure and transparency, and to provide reasonable assurance on the use of the Bank`s loan proceeds.
Good public financial management (PFM) ensures accountability and effectiveness in the management of public resources and is an essential basis for improving governance and fighting corruption. The Bank`s FM requirements are met when the UN agency receives, manages, spends, reports and reviews grant funds from the JPA or UN FMFA in accordance with FM`s internal procedures and the UN Accountability and Oversight Framework. The UN agency normally submits an annual financial report to the Bank on the income and expenditure of the grant. The Public Expenditure and Financial Accountability (PEFA) programme is a multi-donor partnership that assesses the state of countries` public spending, procurement and financial accountability systems and develops a practical sequence for reform and capacity building measures. The bulk of the Bank`s engagement with UN agencies falls under two scenarios: through direct grants from the Bank, that is.
