Monday, 26 May 2008
The Governing Council of Millenium Challenge Account-Armenia SNCO met, presided at by GC Chairman, RA Prime Minister Tigran Sargsyan.
The Governing Council took note of the findings of the financial audit of MCA-Armenia SNCO as carried out in the period from September 1, 2006 to December 31, 2007. It has been noted that in accordance with the audit plan, as approved at the March 16, 2007 session of the Governing Council, the organization's financial and planned activities are subject to independent audits conducted twice a year upon completion of each semester. As a result of a tender invited to that effect, "Grand Thornton Amio" was entrusted with the conduct of such audits of MCA-Armenia SNCO. A relevant agreement was concluded with the Company, effective until December 31, 2008. Two audits were reported to have been carried out for the period from September 1, 2006 to December 31, 2007, with the corresponding reports submitted and approved already by the MCC Chief Inspector's Office. At the same time, it was underscored that considering the observations made by the audit company, the MCA-Armenia SNCO's and Financial Agent's managements have taken steps towards addressing the shortcomings revealed in the system of monitoring which, according to them, could not lead to serious failures.
As to the session agenda, the Governing Council has discussed and approved the revised version of the MCA-Armenia SNCO Monitoring and Evaluation Plan (MEP). The monitoring and evaluation of the Millenium Challenge compact are an essential component of the program and will be carried out at any stage of program implementation. The first version of the MEP was endorsed at the Governing Council session of September 26, 2006, followed by MCC approval on December 26, 2006. Nevertheless, the need has arisen to carry out two MEP revisions over the next few months due to strategic considerations. It was stressed that the past record of compact implementation in different beneficiary countries testifies that specific activities relating to the achievement of a number of goals fail to be realized during the first years of program implementation giving rise to an impression of inadequate activity. In view of the above, the MCC has proposed to complement overall performance indicators with ones describing the current status to facilitate familiarization with the current progress for program executives, decision-makers and the public-at-large. As a result, more clear-cut approaches to data quality assessment and impact evaluation for the past 16 months came to be reflected in the revised version of the plan, the procurements and the budgets relative to monitoring and evaluation activities were specified. It was noted that the MEP is due to be revised once again by August-September when the scope of the irrigation infrastructure component and the realistic targets of program impact on farming income rise and rural poverty reduction will be defined as a result of changes in full program coverage. The revised version of the monitoring and evaluation plan shall then be submitted for MCC approval.
The Governing Council has also discussed and endorsed the technical consultant selection results and the technical proposal submitted under the MCA-Armenia Irrigated Agriculture Project Infrastructure Activity, the shortlist of applicants and the invitation of bids for the next stages of survey of farming activities under the monitoring and evaluation component, as well as the bid assessment results concerning the purchase of consulting services for design and construction supervision relative to the rehabilitation of tertiary canals under Infrastructure Activity of the Irrigated Agriculture Project.
The Governing Council has also approved the amendment to Annex 5 of the implementation agreement signed between MCA-Armenia SNCO and Rural Funding Entity PIU.
