Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

20th International Conference on New Developments in Governmental

Financial ManagementExamining Achievements and

Exploring Opportunities

CIDA Financial Management Practices in the Context of Aid

Effectiveness

Presentation by Dominic BourcierSenior Financial Management Advisor,

Africa BranchMay 8, 2006

Canadian International Development Agency: From Controlling Budgets and Expenditures to

Managing for Results

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

Financial Management of Bilateral Programs Prior to

Aid Effectiveness CIDA-led programming agendaAid channelled to “traditional” recipients

Non-governmental organizations (NGOs)Multilateral organizations (e.g. UN agencies)

Standardized financial management regulations and procedures

Well-defined framework for engaging with partners

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

The New Aid Effectiveness Context

Commitment to principles of aid effectivenessPartner country-driven development agenda

Partner countries receive and manage donor fundsHarmonization and alignment of donor practices and requirementsIncreasing use of partner country systems and processes – public financial managementMonitoring of donor and partner country performance through indicators

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

Adapting to the Changing Environment

Modifications to CIDA’s current financial frameworkCreation of Africa Branch “SWAT Team”Adherence to a harmonized framework for risk assessment, disbursement, reporting, audit & evaluation Participation in joint assessment and monitoring processes between donors and partner country governments

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

Implementing New Financial Assessment Tools

Range of assessments used to evaluate PFM capacity and performance:

e.g. CFAA, PER, RoSCPEFA PFM Performance Measurement Framework

Standardized approach to assess PFM performance over time

Joint tools for assessment e.g. Annual joint review

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

Many Challenges RemainFulfilling our fiduciary obligations while advancing on aid effectivenessAdequate resources with appropriate skill set (i.e. financial management capacity)Complexity of jointly assessing government-wide practices and systemsAdjusting to partner country absorption capacityManaging results expectations

Canadian InternationalDevelopment Agency

Agence canadienne dedéveloppement international

Next Steps

Development of a new CIDA policy on fiduciary risk for program-based approachImplementation of an integrated risk assessment frameworkStrengthening the financial management capacity of our overseas personnel