Financial Management Report

Periodic Progress Reports

Projects typically produce 3 types of reports:

i. ii. iii.

ad hoc regular periodical progress reports annual reports

Fund-financed projects are required to submit to the Fund at regular intervals, not more than 6 months, periodic progress reports, FMR FMR stands for Financial Monitoring Reports

Characteristics of FMR
The distinguishing characteristics of FMR are:

Distinction between project management (by Borrower) and project monitoring (by lender) New emphasis on maximum reliance on borrowers Accounting/reporting systems/format

Format, content, and frequency more flexible

Reflecting project size, sector, and complexity

Guiding Principles of FMR

The overall objective is to provide regular information that gives necessary fiduciary assurance to the Fund FMR will be less detailed than the report prepared for project management Borrowers own system should be used as far as possible in producing FMRs

Guiding Principles of FMR (cont.)

The same structure of financial information should normally be used for project planning, monitoring reports and annual audited financial statements, and Implementation Completion Reports (ICRs) As far as possible, borrowers should not be required to provide the Fund with information already available to the Fund The requirements for financial and procurement monitoring should, as far as possible, be aligned with other Fund requirements for project progress reporting and monitoring

Guiding Principles of FMR (cont.)

While the reports to be submitted to the Fund should meet certain minimum requirements, they should be flexible and customized to each project or where possible, to each country and/or sector Monitoring expenditures in relation to physical progress is a key aspect of ensuring that the project is under proper financial control
Wherever possible, common reporting and monitoring arrangements should be agreed with other donors involved in the project
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Structure of the FMR

The FMR should normally include: Financial reports Physical progress reports, and Procurement reports

FMR Financial Reports

Financial reports should show:

Cash inflows and outflows for the period (e.g., quarter), and cumulatively for the project life Expenditures should be reported according to project activities, not according to procurement/disbursement categories (although this may be reported as an addition)
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Physical Progress Report

Physical progress reports should link physical outputs or implementation progress to costs of achieving them Indicators of physical progress and outputs should be selected during project preparation, stated in the Project Implementation Plan (PIP)

Procurement Report
The procurement report:

shows the status of procurement of goods, works, services, and consultants compares the actual procurement performance with the plan agreed with the Fund at negotiations or in a subsequent review highlights specific problems (e.g., staffing or training needs)
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Matters to be agreed at negotiations

Explains deviations from plan, and proposes solutions to problems identified Format, content, frequency, and currency of reports Project outputs and other indicators for monitoring physical or other progress toward achieving project results How to deal with multiple implementation agencies, scattered project locations, and community-based project activities
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