ANNEX 8 FinManPlan_FINAL240212 Page A.8.6 of 10
9182012
through “Reimbursement”, “SBUN” is added as suffix to the reference serial number eg. xxx SBUN.
Direct payments which do not pass through the Special Account will be booked against the Loan account by IBRD directly.
The flows of funds and documents are shown in the following figures:
• Figure 1: Foreign exchange payments from the Special Account,
• Figure 2: Rupiah payments from the Special Account for contracted
activities, •
Figure 3: Rupiah payments from the Special Account fro self-managed activities,
• Figure 4: Direct Payment procedure,
• Figure 5: Rupiah payments when Special Account has insufficient funds.
7. PROJECT COST RECORDS AND FINANCIAL MIS
For loan-funded projects there are two cost recording systems, operated by GoI and the Lending Agency. They differ both in their objectives and their formats as follows:
1. GoI System – based on SPM and SAI sub-systems, these are part of the
overall budgetary control system and will be maintained by each Satker as part of their routine financial recording and reporting activities. Costs are
recorded as follows; •
Cumulatively only over a single financial, •
Expressed in Rupiah, •
Booked at the time the SPM Sp2D is issued, •
Cost-coded according to the Government chart of accounts which are based on type of cost MAK codes
2. IBRD System : based on disbursements to borrower. Costs are recorded as
follows; •
Cumulatively over the whole Loan period, •
Expressed in Loan Currency i.e. cumulative totals are only in US, although individual draw-downs will generally show also the amount
in the currency of the payment, •
Based on the Statement of Accounts SOE and therefore are not up- to-date with respect to actual expenditures already incurred,
• Cost-coded according to
• Loan Cost categories as specified in the Loan Agreement.
Given the above differences, it is essential that the financial records maintained by the Project provide a continuous on-going reconciliation between the GoI records and the IBRD
records. Thus the project records must:
a Show for each Rupiah payment, the equivalent amount in US for
reconciliation between GoI records and IBRD records, b
Show cumulative totals which show both annual GoI fiscal year totals in Rupiah and project life totals in US
ANNEX 8 FinManPlan_FINAL240212 Page A.8.7 of 10
9182012
c List SPM’s recorded by GoI which have not yet been recorded by
IBRD because no SOE has been received by IBRD, d
Reconcile formally the project records of cumulative expenditures in Loan currency and Loan drawdown’s as shown in the IBRD’s loan
statements. The project also needs to monitor commitments through records of each contract including
Addenda agreed and pending. The PMM will provide additional information regarding the refinements that will be provided by the PMU PMUC to ensure consistency and accuracy in
the financial reporting. Accurate and up-to-date bookkeeping within the Project’s Management Information System
MIS is essential not only for record keeping but also for preparing the Financial Monthly Report. It is also a prerequisite, in combination with other technical and administrative data,
for good management and progress monitoring by PMU.
8. FOREIGN EXCHANGE TRANSACTIONS
