The Afghan Interim Administration (and then the Government of Afghanistan (GoA)) took steps to create and /or strengthen government systems. For example, rapid centralization of revenue and expenditure allowed for centralized budgeting and enforced reporting to the Ministry of Finance (MoF). The creation of a Treasury Single Account helped to build donor trust in centrally-held funds. Evaluation was also built into the aid management system with both donors and implementing agencies evaluated during and after projects

The Assistance Coordination Authority (now the Development Budget and External Relations Unit in MoF) provided a focal point for managing aid.

The ARTF is jointly managed by the Asian Development Bank (AsDB), Islamic Development Bank (IsDB), UNDP and the World Bank (administrator of the Fund). Use of this multi-donor Trust Fund as key instrument of support to reconstruction has helped the government avoid addressing the distinct funding specifications of the 24 donors and thereby, improve aid efficiency and effectiveness.

Following the London Conference, the 24 donors to ARTF met to discuss details on how to improve the use of this mechanism that provides funds directly to the government’s budget. The ARTF resources have been used both to fund recurrent government expenditure and to support 12 projects (so far) that are providing services and infrastructure in every province of the country.

The Government has effectively managed the National Solidarity Project which distributes over $10 million monthly to more than 10,000 villages.

GoA has made a strong commitment to financial transparency and accountability, resulting in improved fiduciary performance.

In 2004, a Finance Management Manual (PFMM) was prepared. The new procedures - Program Policy Review (PPR) and Program Expenditure Planning (PEP) - were piloted in four ministries (education, health, social and agriculture).

By 2005, Albania’s budget formulation was being transformed from a statistical budget to a policy-oriented one via the IPS which is a state-of-the-art internal coordination system to translate vision, strategy and policy into multi-annual budgeting, objective-based programming, implementation and monitoring/evaluation of impact.

Pooled Account: Co-financed funds from AsDB, IDA and six other partners would be advanced in support of the program. AusAid, JICA, and UNICEF will be making funds available through direct payments to service providers under bilateral agreements with the Government.

AsDB, as the lead agency, would be responsible for reporting to donors on a quarterly basis.

Common Audit and Reporting Requirements: The program will be subject to external audit by the Comptroller and Auditor General of Bangladesh. Unless the situation requires a special or additional audit, there would be one single external audit for the GoB and all participating donors.

The Annual Consolidated Financial Statements for the sector would serve as the common report for Government and donors. This audit will be based on a terms of reference acceptable to all donors.

Public Financial Management (PFM) reform programs have been initiated under various TA programs by AsDB, DFID and WB to identify current FM gaps.

A joint procurement, financial management and disbursement assessment is being undertaken by a group of donors for multi-donor pooling for SWAps in the health and education sectors.