Review of IDA Internal Controls : An Evaluation of Management’s Assessment and the IAD Review
International Development Association (IDA) stakeholders want to be assured that IDA complies with its articles and policies, and that the funds it provides for development purposes are used as intended and have measurable results. A key purpose of...
| Main Author: | |
|---|---|
| Format: | Brief |
| Language: | English |
| Published: |
Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/01/12815451/review-ida-internal-controls-evaluation-managements-assessment-iad-review http://hdl.handle.net/10986/10574 |
| Summary: | International Development Association
(IDA) stakeholders want to be assured that IDA complies with
its articles and policies, and that the funds it provides
for development purposes are used as intended and have
measurable results. A key purpose of IDA's control
system is to provide such assurance. Hence, the Board of
Executive Directors requested a full evaluation of the
system by the Independent Evaluation Group (IEG), through an
assessment by IDA management and a review by the Internal
Audit Department. The evaluation is the first of its kind
not only for the Bank but also for all international
financial organizations. In this sense the Bank and IDA have
taken an important lead in assessment of internal controls.
The analysis includes several recommendations. First,
controls over possible fraud and corruption in IDA
operations should be addressed on a broad front, starting
with risk management processes and country assistance
strategies, and including the development and deployment of
specific additional instruments directed at fraud and
corruption issues at the level of programs and projects.
Second, the implementation of remedies for the other control
deficiencies should be closely monitored. Management has
recognized the need for such remedies, and many are
contained in the Governance and Anti-corruption (GAC)
program currently being implemented (including some still
under preparation). These remedies appear in both scope and
content to address the key issues, and they correspond well
to those suggested by IEG in this report. However, they are
not yet sufficiently operative to be tested and, if
effective, thereby lessen the materiality of the controls
weaknesses identified. IEG thus believes it would be
premature to conclude that fraud and corruption (F&C)
risks have been successfully resolved under the current IDA
controls framework. |
|---|