The Road to the SDGs

identifying and categorising risks – Principle 3 — IsDB’s PFM requirements must be reflected in the country’s MCPS – Principle 4 — IsDB will facilitate the implementation of its Anti- Corruption Policy to combat the risk of fraud and corruption in project financing – Principle 5 — There will be compliance with Anti-Money Laundering, Combating Financing of Terrorism and Know Your Customer Policy – Principle 6 — PFM practices will be harmonised with those of other donors – Principle 7 — Country systems will be used, where the capacity is adequate to operationalise the aims of the Paris Declaration, the Accra Agenda for Action and the Busan Partnership. X IsDB tailors its PFM activities to the quality and capacity of the beneficiary’s financial management systems. IsDB’s PFMF brings together all aspects of the funding journey with the aim of properly managing resources to achieve the intended development results. Key areas of focus include: – Planning – Budgeting – Accounting – Financial reporting – Internal control – Auditing arrangements – Funds flow management. X IsDB is committed to ensuring that its operations and activities are governed by strict rules, procedures and guidelines aimed at achieving: – Regularity – Transparency – Integrity – Legality. X The project financial management role spans all IsDB- financed projects, covering: – Project identification – Preparation – Appraisal – Implementation – Completion. ACHIEVEMENTS X The PFMF document: – Addresses financial management risks in IsDB-financed projects – Works in the context of IsDB’s new operating model and incorporates best practices from other MDBs and FIs – Enables IsDB to work with global partners to build sustainable financial management capacity and harmonise donor practices within MCs. X The PFMF enables policy and strategy discussions and informs investment choices and other support to MCs. X IsDB’s approach to the PFMF reinforces the MCPS approach through a ‘Whole IsDB Group’ principle. X Outcomes in 2019 include: – 100% financial management assessment exercises undertaken for the new projects, with the aim of ensuring the use of funds for the intended purposes – 100% review of projects’ financial audit reports, allowing the detection and remediation of projects’ financial issues. INVESTMENT X The PFMF is designed to achieve two main objectives: – Improve country PFM performance as a key contributor to successful development – Apply appropriate fiduciary arrangements to the financial support that IsDB provides to its MCs. K E Y P R I N C I P L E S Country systems will be used to operationalise the aims of the Paris Declaration , the Accra Agenda for Action and the Busan Partnership R E V I E W O F P R O J E C T S 100% of financial audit reports received [ 155 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S