FINANCIAL MANAGEMENT AND AUDIT. A18.1 You must operate sound financial management systems and procedures.
FINANCIAL MANAGEMENT AND AUDIT. Processing of withdrawal applications (WA) and reimbursement of on granting activities is delayed by lengthy process at CPMU level and lack of guidance from the financial management specialists at CPMU, MOHA and MOA to the district and provincial agencies. The documentation for reimbursement submitted to CPMU is also often incomplete. Backlog or expenditures utilizing advance account is not reported to ADB resulting in delayed liquidation/replenishment (i.e. US$1.2 million or 41% of the initial advance deposited in Bank Indonesia). On 20 April 2020, the State Audit Agency (BPK) informed that the FY2019 audit report will be completed by Q3 2020 due to COVID-19. To address those issues the following actions have been agreed: Action By Due by Operationalize the tracking system for processing of on granting reimbursement activities after verification of documents by CPIU CPMU, MOA, MOHA Immediate Mobilize financial assistant in provincial and district agencies to accelerate utilization of on granting funds. CS02 17 July 2020 Provide guidance/checklist (to PPIUs and DPIUs) of required documents in preparation/submission of reimbursement of on-granting activities CS02 31 July 2020 Submit WAs to ADB for on-granting activities and CW04A initial payment CPMU 31 July 2020 Provide training on CPD to CPIU, CPMU and others ADB As needed Provide ADB with an update on the refund to the advance account for travel expenditures and VAT of vehicles as recommended by BPK in the APFS FY2018 DGWR 31 July 2020 Submit APFS FY2019 to ADB CPMU 31 Dec 2020 14. Implementation, Procurement and Disbursement Plans The mission updated the procurement plan (Attachment 3) and will request for approval from ADB to disclose this on the ADB website. All project activities are expected to be completed within the original period. The contract awards and disbursement projections have been revised and agreed with the executing agency. Detailed contract awards and disbursement projections for 2020 are presented in Attachment 4. Reallocation from MOA and MOHA CDD components to civil works will be assessed in Q4 2020, depending on the implementation progress. Despite extensive consultations, the CPMU has not yet submitted the updated Project Administration Manual (XXX) to ADB, which was due in September 2019. It is noted that in April 2020, ADB approved MOA proposal to revise the XXX. Action By Due by Update contract awards and disbursement projections CPMU 10 July 2020 then quarterly Submit the upd...
