The Asian Development Bank (ADB) is a multilateral development finance institution
founded in 1966 to promote social and economic progress in its developing member
countries in Asia and the Pacific (see ADB’s website: http://www.adb.org/about/main).
2.2 ADB’s principal functions are
- lending funds,
- providing grants,
- providing technical assistance and advisory services,
- promoting investments for development purposes, and
- assisting in coordinating the development policies and plans of developing
member countries.
Inquiries
2.3 Loan disbursement is handled by the Loan Administration Division of the Controller’s
Department.
2.4 For loan service payments and billing matters, inquiries are addressed to the
Accounting Division of the Controller’s Department.
Loan or Grant Regulations
3.4 The regulations4
further set out conditions for the use of loan or grant proceeds
financed by ADB, or proceeds administered by ADB.
5
These documents are expressly
incorporated in the associated loan agreement, guarantee agreement, or grant
agreement. If any provision of a loan agreement, guarantee agreement, or grant
agreement is inconsistent with a provision of these regulations, the provision of the
loan agreement, guarantee agreement, or grant agreement governs.
Loan Documents
3.5 Loan documents
6
include the following documents and agreements:
ȕ Thereport and recommendation of the President to the Board of Directors
(RRP) presents the project proposal for consideration by the ADB Board.
ȕ Theproject administration manual (PAM)
7
includes all the information and
schedules describing project implementation and project readiness filters
covering major preproject implementation actions (e.g., government approvals,
procurement, and resettlement) to ensure a rapid start-up and enable early
disbursement. It is mandatory
8
that the PAM be referenced in the RRP and in
the loan (or facility) agreements, is presented as a stand-alone linked document
to the RRP, and serves as the main document describing implementation details.
The PAM is prepared in the course of loan processing and initially agreed with
the government at the loan fact-finding stage. At loan negotiations, the borrower
and ADB shall review and confirm the PAM agreed during loan fact-finding to
ensure consistency with the loan agreement, and such confirmation shall be
reflected in the minutes of the loan negotiations. The detailed cost estimate by
financier (one schedule included in the PAM) is prepared based on Section J6 of
the ADB Operations Manual (Appendix 3A).
9
Related illustrative tables are also
provided in this handbook (Appendix 3B).

The imprest fund procedure must be audited at least annually by independent and qualified auditors acceptable to ADB.

8:41 AM    

Audit Arrangements
10.28  The imprest fund procedure must be audited at least annually by independent and
qualified auditors acceptable to ADB. The audits are carried out as part of the regular
annual audits of the project financial statements prepared by the borrower, EA, or IA.
11
Review by ADB Staff
10.29  ADB reserves the right to conduct spot or random checks of the imprest account and
expenditures paid from the imprest account (including those expenditures paid from
the subaccounts) through special disbursement missions or review missions, or upon
ADB’s request for submission of supporting documents on a sampling basis.
Suspending Replenishment
10.30  ADB may suspend replenishment of the imprest account if
ȕ the loan is declared suspended by ADB, partially
12
or fully;
ȕ audit reports, management letters, or ADB missions indicate significant
irregularities in financial management, accounting, internal control, and/or the
operation of the imprest account(s) and/or the subaccount(s); or
ȕ the imprest account has been inactive for more than 6 months and no application
for replenishment has been submitted.
10.31  During the suspension, no additional funds will be advanced to the imprest account.
However, available funds in the imprest account (including the subaccounts) can
be used to meet eligible expenditures, unless otherwise instructed by ADB.
13
WAs submitted for these expenditures will be applied to liquidate the balance
of advances.
Narrative Procedures
10.32  The narrative procedures and the check list for the imprest fund procedure are shown
in Appendix 10E.
Supporting Documents
10.33  The supporting documents listed in the following table should be submitted to
ADB together with the WA. If simplified documentation (i.e., SOE and/or FAW) is
approved, supporting documents should be retained by the EA and/or IA for annual
audit of project financial statements and/or ADB’s review (see Section 4.29 for
the retention period of supporting documents). ADB reserves the right to request
submission of such documents if deemed necessary. Additional supporting documents
which are not listed in the following table may be required, depending on the
transaction involved. ADB will return WAs that do not meet the requirements.
11
See OM J7, PAI 5.07, and Technical Guidance Note on Financial Reporting and Auditing.
12
Suspension is applicable only to affected EA or component.
13
ADB may demand immediate refund of the available funds in cases where the suspension is due to significant
irregularities in the operation of the imprest account and/or the subaccounts.