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
11
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.

How Approve from the bank loan?

11:52 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.