Public Financial Management Risk Assessment Framework (PFMRAF) Stage 2 Risk Assessment of Social Investment Fund
IBI conducted a risk assessment of the Honduran public financial management systems and the Honduran Social Investment Fund (FHIS, for its acronym in Spanish). This assessment advised USAID on the viability of relying on FHIS for project implementation directly funded through government-to-government (G2G) funding mechanisms, while also providing the FHIS with concrete recommendations for improving its financial management.
Founded in 1990 by the Honduran Congress, the FHIS is one of the main implementing agencies of USAID-financed programs in Honduras, and thereby plays an important role in utilizing international donor funds for the best interests of Honduran citizens. In this assessment, IBI tested the adequacy of the design and operation of key business processes and control flows, as well as internal controls, accounting, and human resources. IBI’s report gave a comprehensive diagnostic of institutional capacity and fiduciary risks.
(Photo Credit: Nan Palmero)