Financial Management is a process, having as its primary objective the optimization of financial and economic benefits from an investment. It ensures accountability and efficiency in the management of public resources by providing:
- the essential information needed by those who manage, implement, and supervise projects, including government oversight agencies and financial institutions;
- the assurance needed by the borrower country, lenders, and donor community that funds are being used efficiently;
- a deterrent to fraud and corruption, since it offers the necessary controls to detect unusual occurrences quickly.
The objectives of the Bank’s financial management work are:
- Fiduciary, providing reasonable assurance on the use of Bank Resources in line with the requirement of the Articles in the Agreement Establishing the African Development Bank and the Agreement Establishing the African Development Fund that require that the “Bank shall make arrangements to ensure that the proceeds of any loan made or guaranteed by it are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency” ;
- Developmental, helping countries improve their performance on Public Financial Management (PFM) as sound public financial management is critical to the achievement of public policy objectives, including poverty reduction and combating corruption, by contributing to efficiency, controls, transparency and accountability.
The Procurement and Fiduciary Services Department (ORPF) reports to the Vice President, Country and Regional Programs & Policy (ORVP). The Fiduciary Services Division (ORPF.2), the subject of this Retrospective Report, is responsible for all financial management and related issues. It has an increasing decentralised country presence anchored primarily by the regional resource centres, but covering all 54 countries.