Fiduciary Risk Assessments (FRAs)
Public financial management and fiduciary risk management
Fiduciary Risk Assessments (FRAs) are intended to provide donors with confidence in the financial management policies and procedures prior to partnering with a public sector entity. The FRA focuses on reviewing the partner government’s public financial management systems, and provisions for the mitigation of corruption and fraud risks. The assessments consider the appropriateness and credibility of the partner government’s financial management reform program, and the trends of fiduciary risk over time.
MannionDaniels have completed a number of FRAs across a range of contexts. These include:
- FRA Ethiopia (2020). MannionDaniels completed a Foreign, Commonwealth & Development Office (FCDO) funded project to conduct two regional Fiduciary Risk Assessments (FRA) for the regional governments of the Amhara and Somali Regions. In addition to the regional assessments, we completed a review and commentary on key risks in a recent national FRA.
- FRA Rwanda. MannionDaniels have completed two recent FRAs in Rwanda:
- In 2019 on behalf of FCDO, MannionDaniels delivered an FRA covering the sectors in Rwanda that FCDO fund or are interested in putting rapid response funding in place for. An assessment was also made for the country as a whole, with specific analysis covering 5 projects and programmes within Rwanda.
- In 2022 MannionDaniels were contracted by FCDO to complete a further FRA in Rwanda. The FRA covers a standard approach towards the assessment of the national system, which draws from the 2022 PEFA assessment. In addition to the national FRA the assessment will include further sectoral FRAs driven by FCDOs activity in country.
- FRA Nepal. As part of MannionDaniels’ work on the Procurement and Public Financial Management project we have completed a number of FRAs as well as subsequent ASPs and monitoring on the Health Sector in Nepal.
- United Nations Relief and Works Agency FRA (2021). MannionDaniels recently completed a FRA and an enhanced due diligence assessment for the FCDOs future funding to the United Nations Relief and Works Agency(UNRWA). The assessment included analysis of the different portals, for example Programme Budget and the Syria Regional Emergency Appeal.