Final disbursement.Preparation of WA(s) for final disbursement(s) of project loan
and tranche disbursement of a policy-based loan should be closely coordinated
between ADB and the borrower and/or EA, particularly if the remaining unutilized
balance is expected to be fully utilized.
4.17 Winding-up period.10
The borrower may make withdrawals from the loan account
for expenditures incurred on or before the loan closing date. Expenditures incurred
after the loan closing date will not be financed under the loan. ADB may allow up to
4 months after the loan closing date (i) for the borrower’s WAs to be submitted to ADB
for expenditures incurred on or before the loan closing date, and (ii) for the borrower
to fully liquidate expenditures incurred on or before the loan closing date. After the
winding-up period, WAs, including requests for liquidation, will not be accepted.
Extension of the winding-up period, on an exceptional basis, may be approved by ADB
(Section 4.14).
4.18 Within 2 months after the winding-up period for submission of documents, the
borrower should fully refund any outstanding imprest account balances to ADB. If the
borrower fails to fully refund such balances, ADB may, among other corrective actions,
decide not to allow the use of the imprest fund procedure under the borrower’s new
projects until such time as the refund is received.
4.19 Payment of final audit fees.If external auditor’s fees are financed by ADB, it is
best practice to pay the audit fee before the loan closing date after completing the
final audit (Section 4.15). When audit fees under a project need to be paid after the
closing date, special arrangements may be required for payment of the final audit fee
from the loan account. External auditor’s fees for the final fiscal year may be disbursed
from the loan account, under condition that (i) the borrower signs a contract for the
final audit prior to the loan closing date, and (ii) the contract is a lump-sum or fixedprice contract that requires completion
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of audit within 6 months after the loan
closing date. If the audit work cannot be completed during the winding-up period, and
the final audit fee will be paid through the escrow account, full supporting documents
should be attached to the WA (see Appendix 4D for more details).
4.20 Refunds.All refunds must be paid to ADB’s accounts at its depository banks with
payment details indicating (i) references such as loan number, (ii) description or
nature of the refund, and (iii) currency and amount of refund. The borrower and/or
EA should send advice to ADB’s Treasury Services Division (TDTS) and CTLA once
a refund is made.

Borrow money bank not Approve take photo sent to bank and sign contract

11:15 AM    

ADB applies the current value of the refund. As refund of imprest advance is normally
in the currency of the imprest account (e.g., US dollars), if advance to the imprest
account is further exchanged to another currency (e.g., a local currency) in order to
pay expenditures in that currency, exchange difference between the date of currency
exchange and the date of refund is borne by the borrower. If such exchange difference
is to be borne by the borrower through absorption into its loan account, it should be
agreed with ADB.
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Use of Subaccount(s) under the Imprest Account
10.24  In some cases, project funds flow requires bank accounts (the “subaccount[s]”
hereafter)
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opened in the name of an IA, unit, provincial government, village, or
other entity (collectively “IA” hereafter), which receives advance from the imprest
account, to meet project expenditures incurred by the IA. The subaccount is normally
a separate bank account opened for the exclusive use of the project, unless otherwise
approved by ADB.
10.25  The borrower should ensure the following matters for using the subaccount(s):
ȕ there is a clearly defined need for the subaccount(s);
ȕ the borrower, EA, and IA must have adequate administrative and accounting
capabilities to establish sufficient internal control, accounting, and auditing
procedures to ensure proper use and operation of the subaccount(s); and
ȕ there is treatment of foreign exchange differences.
10.26  The use of subaccount(s) should be described in the PAM. The currency of the
subaccount(s) may be a local currency. If, during project implementation, the
borrower finds it necessary to use the subaccount(s), the request for using the
subaccount(s) should be sent to ADB for approval (Sections 4.13–4.14).
10.27  The borrower, EA, and IA should ensure that every liquidation and replenishment
of each subaccount is supported by (i) the statement of account (bank statement)
prepared by the bank where the subaccount is maintained, and (ii) a subaccount
reconciliation statement (Appendix 10D) reconciling the abovementioned bank
statement against the subaccount’s records. These supporting documents should be
retained by the borrower, EA, and/or IA, as appropriate, and be made available to
ADB upon request.
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This may be documented in the PAM or in an appropriate ADB approval (Sections 4.13–4.14).
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Formerly called second generation imprest account (SGIA). The use of the SGIA, if so stipulated in a loan
agreement, is not superseded by the revision of the handbook. The subaccount(s) should be distinguished
from “petty cash,” which is a small amount (normally not exceeding US$1,000 equivalent) of funds held in
the same office in the form of cash for the purpose of covering petty expenses, and is not the subaccount.