eThekwini, South AfricaeThekwini, South AfricaNovember 4-5, 2004November 4-5, 2004

2004 Annual Meeting2004 Annual Meeting

Cities AllianceCities AllianceConsultative GroupConsultative Group

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Fiduciary Management ofFiduciary Management of Cities Alliance Grants Cities Alliance Grants

Why Fiduciary Management Procedures?Why Fiduciary Management Procedures?

Increase in volume of grantsIncrease in volume of grants

More grants now directly executed by More grants now directly executed by local authorities, NGOs, and other local authorities, NGOs, and other recipient organisations recipient organisations

Consequent strengthening of Consequent strengthening of procedures, controls and capacities at procedures, controls and capacities at the Cities Alliance Secretariatthe Cities Alliance Secretariat

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Fiduciary Management Procedures Fiduciary Management Procedures

World Bank and UN Habitat executed GrantsWorld Bank and UN Habitat executed Grants Reliance on the institutional systems and procedures of the respective

institutions

Recipient Executed Grants Recipient Executed Grants More reliance on Cities Alliance

Secretariat’s Financial Management Procedures

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Grant Recipient:Grant Recipient:Fiduciary Assessment Fiduciary Assessment

Initial AssessmentInitial Assessment Organizational Structure Accounting Systems and Procedures Internal Controls External and Internal Audits Procurement Procedures On-site Review (large grants)

Fiduciary Assessment ReportFiduciary Assessment Report

Risk Analysis Action Plan for Improvement, if

necessary, developed with Recipient (capacity building)

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Grant Recipient: Grant Recipient: Fiduciary Assessment (contd.) Fiduciary Assessment (contd.)

Partnership AgreementPartnership Agreement Tranche PaymentsTranche Payments

Disbursement Conditions (Deliverables)Disbursement Conditions (Deliverables)

Grant Agreement structured so that all Grant Agreement structured so that all Implementing Partners may sign Implementing Partners may sign

(e.g.: Joburg-Addis Ababa Partnership (e.g.: Joburg-Addis Ababa Partnership Program)Program)

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Cities Alliance Secretariat: Cities Alliance Secretariat: Financial SupervisionFinancial Supervision

Review of Quarterly Financial ReportsReview of Quarterly Financial Reports

Monitoring Action Plan for ImplementationMonitoring Action Plan for Implementation

On-site visits (as appropriate)On-site visits (as appropriate)

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LessonsLessons

Key lessonsKey lessons Two-way learning process Recipient execution facilitates client

ownership and financial capacity Enables more effective monitoring of

project implementation (both financial and operational)

Quality of reporting often better than with multi-lateral execution

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Http://www.citiesalliance.orgHttp://www.citiesalliance.org

eThekwini, South Africa. November 4-5, 2004