Progress Update on Trade SWAp, TDSP and EIF By CHHIENG Pich, Director, DICO National Project Director, TDSP Director, EIF-NIU
1. Progress Update on TDSP 2. Audit Findings in 2014 3. Communication cooperation 4. EU Funding Program 2014-2020
1. Project Development Objectives (PDOs): TDSP will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies. 2. Multi-Donor Trust Fund : EU, DANIDA & UNIDO 3. Trust Fund Manager : World Bank 4. Executing Agency : DICO/MoC 5. Board approval date : 07 Jan 2009 6. Effective date : 09 Mar 2009 7. Duration : 5 years (until 31 Mar 2012) 8. Original budget : US$12,350,000 9. Additional budget : US$3,100,000 10. First extension : 31 Jan 2014 (22 months) 11. Second extension : 31 Mar 2015 (14 months) 12. Third extension : 14 Aug 2016 (17 months) 13. WB Implementation Support Mission : 27 Oct – 27 Nov 2014 14. Next Implementation Support Mission: mid Sep 2015
No Identified Projects # Projects 1. Total project under TDSP 29 2. Projects completed and closed 12 3. Ongoing projects 15 Projects will be completed and closed by Mar 2015 8 • Implementing Agency Capacity Enhancement Program (RSA) – (completed) Reviewing commercial laws (DNLC) – (completed) Support drafting E-commerce Law (DLAD) – (completed) Rules of Origin (DMUL) – (completed) MoC Core HR Function (DoP) – (completed) Strengthen Capacity of ISC (ISC-MIH) – (completed) Support to G-PSF (CCC) – (completed) Better Quality of Fish and Fishery Products (FiA-MAFF) – (completed) Projects will be completed and closed by Aug 2016 9 • ASYCUDA World System (GDCE-MEF), ICT Master Plan – Automation of Certificate of Origin (MoC), Automation of Business Registration (BRD), Automation of SPS Certificate (GDA-MAFF), Trade Training and Research Institute (TTRI-MoC), Drafts of Rice Standards – Certification Schemes for Rice (Accreditation System) (ISC-MIH), Development of a stronger National system for IP generation, protection, administration and enforcement (DIPR), Support for the Arbitration Council and Dispute Resolution in Cambodia Strengthening the Operational Capacity of the National Commercial Arbitration Centre
TDSP Funds Position As of 30 th June 2015 (Unaudited - Expressed in Percentage of the Total Grant Amount of US$ 15.450 million) Funds Required for DICO Operations & including various consultants $1,069,955 (7%) Cumulative Expenditure $10,799,666 (70%) Balance Commitment under all MOUs including GDA, TTRI, ACF, NCAC & ICT but excluding the closed projects $ 3,580,379 (23%) • We have $4,650,334 to spend in the next 14 months, • We need to spend $332,167 each month, • Or $930,067 each quarter
TDSP Fund Actual Disbursement against Projected Disbursement by Quarter, 2004/2015 As of 30 Jun 2015 Disbursement Projection Actual Disbursement 800,000 798,281 82% 653,425 700,000 106% 593,715 592,966 586,610 551,935 600,000 81% 482,675 500,000 61% 400,259 361,490 400,000 65% 262,511 300,000 200,000 100,000 0 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015
TDSP Fund Disbursement by Year, As of 30 th June 2015 (Expressed in Percentage of the Total Grant Amount of US$ 15.450 million) 17.8% 17.5% 2,751,160 2,704,645 13.5% 3,000,000 10.8% 2,087,570 2,500,000 1,674,943 2,000,000 4% 5.5% 1,500,000 0.75 % 849,121 615,558 1,000,000 116,584 500,000 0 2009 2010 2011 2012 2013 2014 2015 NOTE: *. Cumulative Disbursement = USD 10,799,666 **. Cumulative Disbursement as a Percentage of Total Grant = 70%
TDSP Fund Future Disbursement Projection by Quarter (2015/2016) Estimated Disbursements of Grant Balance – US$ 4,650,334 1,460,262 1,600,000 1,076,144 1,400,000 1,200,000 864,387 703,375 1,000,000 546,166 800,000 600,000 400,000 200,000 0 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016
Implication Findings I Recommendation Some advances were The absence of liquidation of We recommend not cleared within the cash advances within the set that liquidation of time frame. time frame was not in advances should be compliance with the SFMM. made within the Moreover, Projects’ progress time frame set out might not be accurately in the SFMM. Long monitored and reported on a outstanding timely basis. advances should be promptly followed up. Previously 10 working days and now 20 working days
Implication Findings II Recommendation All fixed assets held in The absence of fixed assets The project the Information tagging indicated weakness management Communication in the administration should tag all fixed Technology ( ICT) controls and may give rise to assets for tracking office are not tagged. misappropriation of assets and safeguarding of without the knowledge of assets purchased management. with funds granted and to ensure that they are being used for the Project’s intended purposes.
Implication Findings III Recommendation There was no Absence of the advance We recommend advance register register would result in that the advance maintained at EIF tier difficulties for the project register should be 2 CEDEP I from management to control prepared and January to December advance and monitor maintained for the 2014. activities. whole year.
Implication Findings IV Recommendation PV and supporting The absence of “ PAID” and The project should documents were not POSTED” on PV an cancel the stamped “ PAID” . supporting document could supporting lead to double payments on documents once the same expenditures and payment was made double recording of by stamping “ transaction into the system. PAID” and POSTED” after recording of such transaction and indicate the date of payment accordingly.
Implication Findings V Recommendation Project Management Here are the penalties if The project should did not withhold and failed to comply with the withhold and declare the tax on withholding tax: declare tax on consultant services to • 10% of the amount of consultant services the tax authority. underpaid tax for tax to the tax negligence; department in • 25% of the amount of accordance with underpaid tax for tax the applicable rate serious negligence; as defined in the • 40% of the amount of LOT to avoid any underpaid for a unilateral potential penalties tax assessment ; being imposed. • 2% interest per month.
Implication Findings VI Recommendation Delay in cash Cash is highly liquid and the We recommend transferred to bank project is exposed to higher that the cash that risk of losses if it keeps high refunded from cash on hand balance. liquidate of advance should be transferred immediately to the bank to avoid the risk of theft or misappropriation.
Implication Findings VII Recommendation 1. No cash count was 1. If cash counts are not 1. We recommend performed in EIF Tier performed, errors in cash that cash counts 2 CEDEP I during the transactions either accidental should be year. or intentional may not be performed by a 2. Bank reconciliation detected and discrepancies cashier to ensure an d petty cash book may not be resolved in a that the physical in EIF Tier 2 CEDEP I timely manner. cash on hand were not prepared by 2. Without regular bank agrees to the the accountant and reconciliation, discrepancies cash book. reviewed by between the book and bank 2. We recommend management on a balances may not be that formal ban regular basis. investigated and resolved reconciliation be promptly. performed on monthly basis.
Implication Findings VIII Recommendation The amount of the The difference between the We recommend cash on hand actual amount and the that the project recorded in system is confirmation may lead to should maintain different from the incomplete record of the accurate actual amount on the transactions during the year. financial confirmation. information for the preparation of the financial statement.
Status • TDSP project will be closed by August, 2016. • Visualizing results/achievements is critical importance. • DICO is implementing Communication Action-Plans 2015-2016 which requires strong inputs from IAs. Suggestion • IAs to initiate and propose communications activities • IAs to work and consult with DICO’s Communication Unit • IAs to attend training on “Strategic Communications” to be organized by DICO’s consultant.
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