FMPM Revision

1. FMPM Revision

2. FMPM Revision • To structure the discussion, issues have been grouped as follows: • A. Approach and Hierarchy; • B. Risk Assessment and GAC; • C. Additional Guidance: FM Supervision; • D. Quality Assurance and Governance Arrangements; • E. SWAps and Country Systems.

3. FMPM Revision • A. Approach and Hierarchy; • Principles Based approach V. Rules Based approach, distinguishes between • mandatory and non-mandatory aspects and • between core and non-core elements • Need to retain flexibility for regional variations and professional judgement. • Common framework and principles would be supported by guidance;

4. FMPM Revision • A. Approach and Hierarchy (continued); • To balance principle based approach with need for guidelines, we should agree on a hierarchy: 1. Policy Framework – authorizing environment OP/BP 10.02 2. Core aspects of FM in Manual – Mandatory 3. Guidance – non-mandatory 4. Good practice database completed as a priority.

5. OP/BP 10.02

6. FMPM Revision • B. Risk Assessment and GAC; • how do we mainstream recent Bank initiatives such as MRIL and Additional Financing? • GAC - expanded focus on Governance and Anti-Corruption. • What additional guidance is necessary in terms of assessing risk? • Impact of RAPMAN/PRIMA?

7. FMPM Revision • C. Additional Guidance: FM Supervision; • More Guidance on required supervision, Performance Monitoring, use of technical audits. • Define collaboration with other fiduciary staff: Procurement and LOA. • Is the current manual too prescriptive? need more flexibility, e.g. on documentation and dangerous security situations.

8. FMPM Revision - D. Quality Assurance and Governance Arrangements; • Can we give examples of good practices that could be adopted in all Regions? • Which areas are in need of clarification or more focus? • Need to clarify boundaries of responsibility • between LOA and FM; • and between the TTL and FMS.