Fiduciary Risk Assessment for Bangladesh

Preparing the Fiduciary Risk Assessment (FRA), building on previous national-level FRA’s conducted in June 2007 and March 2006, and the Public Expenditure and Accountability (PEFA) assessment from November 2006.

• Become thoroughly conversant with DFID guidance on managing fiduciary risk;

• Become thoroughly conversant with the findings and conclusions of existing diagnostic materials, including the World Bank’s latest (draft) Public Expenditure and Institutional Review (PEIR);

• Understand the PFMA system in Bangladesh and identify and evaluate its strengths and weaknesses;

• Assess the overall level of fiduciary risk, including the risk of corruption and the credibility of existing reform programmes;

• Record analysis of the PFMA system and of fiduciary risk within the prescribed DFID FRA format;

• Suggest possible short term safeguards where risks are not adequately addressed in existing reform programmes and set out pros and cons of using them;

• Outline the options for monitoring future performance.