FINANCIAL POLICIES & PROCEDURES MANUAL - Ministry of Health

HSSP Financial Policies & Procedures Manual
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6.4 BANK ACCOUNTS
Credit and Grant effectiveness and the entitlement to withdraw for the expenditures incurred
must be in accordance with the legal provisions and conditions of the loan agreement.
Withdrawals can start only upon compliance with all conditions established by the DPs or lender.
The opening and operations of Bank Accounts should be approved by the Ministry of
Economics and Finance (MEF).
6.4.1 AUTHORISED SIGNATORIES
See Delegated Authorities – Section 2.
6.4.2 DESIGNATED ACCOUNT (DA) / FIRST GENERATION IMPREST ACCOUNT (FGIA)
Loan / Credit / Grant funds must be held in a separate Designated Account (for pooled funds)
and other separate bank account (called FGIA) for other financiers. These are Bank Accounts
held at the National Bank of Cambodia (for pooled and counterpart funds) and at any other
financial institutions as agreed by other financiers, must be used exclusively for the payment of
Program Expenditure as set out in the Loan / Credit or Grant Agreement. They are revolving
accounts funded with an advance from a bank loan or grant that can be used exclusively to cover
their share of eligible expenses in both local and foreign currencies. The Account will have an
authorised allocation or limit and an initial advance set out in the respective agreement.
The objective of this account is to help the Program overcome cash flow problems and speed
disbursements in the following ways.
• making funds readily available
• reducing time for processing payments
• reducing the number of withdrawal applications
• giving the borrower greater control of the payment information
Operation of DA/FGIA
• World Bank funds will be advanced into pooled account and commingled with fund from
other donors participating in the pool.
• The pooled and counterpart fund accounts will be opened at National Bank of Cambodia.
• The first advance for the pooled account will be for first six month expenditures from
pooling partners based on the approved AOP.
• Following the initial advances into the pooled account the pooled donors will replenish funds
based on the six months cash-flow projection report in quarterly IFRs by taking into account
the progress of the Program and opening funds balance.
• Discrete donor funds will also be advanced into separate bank account for each donor, which
will be opened at Financial Institution in Cambodia. The initial advance and subsequent
replenishment funds for discrete donors account will be followed as the same mechanism of
pooled funds account.
• The counterpart funds will follow the same mechanism as the pooled funds account.
• Based on related agreements/ internal contract /MOU, the fund will transfer from National
Bank of Cambodia to advance accounts at commercial bank for the national program,
provincial, and eligible ODs. The commercial bank should commit to provide reliable and
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