ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

5 Funds transfer mechanisms5.1 IntroductionDevelopment partners’ financial contributions to the ASDP are pooled in a basket.This section describes procedures that are followed when channelling programmefunds through the GoT consolidated account to the ASLMs development exchequeraccounts and LGAs general fund accounts.5.2 ASDP holding accountPrior to the commencement of the programme on 1 July 2006, the ASDP Secretariatneeds to arrange for opening a USD holding account at the Bank of Tanzania (BOT).The ASDP Secretariat must to submit a letter to the Permanent Secretary (Treasury)marked for the attention of the Accountant General. This written request must besupported by a signed copy of the programme’s MOU. The Accountant Generalthereafter instructs the Foreign Accounts Department at the BOT to open anaccount.Once opened, the BOT must provide account details such as the, account number,branch sort code, swift code etc. in writing to the Accountant General and ASDPSecretariat. The ASDP Secretariat is required to disseminate accountinformation to development partners5.3 Development partners’ pledges to the ASDPThe ASDP Basket Fund Steering Committee based on the outputs of the planningexercise, is responsible for indicating the ASDP financial requirements on an annualbasis. This information guides development partners on the amount of fundsrequired. Following the annual review, development partners confirm their fundingcommitments by signing a side agreement that specifies the levels of funding bydonors for the following year and estimated support for the next two years.5.4 Deposits to the basket fund accountDevelopment partners deposit funds in the basket fund account prior to thecommencement of the GoT’s financial year in July. Deposits should be sufficient tofinance activities for the first six months of the financial year. Thereafter, partners candeposit their contributions on a quarterly basis.Development partners deposit amounts pledged into the ASDP basket fund, a USdollar holding account, maintained at the BOT and managed by the AccountantGeneral.Government of the United Republic of Tanzania37