REIMBURSEMENT PROCEDURE

Description

9.1 The reimbursement procedure is a disbursement procedure where the Asian Development Bank (ADB) pays from the loan account to the borrower's^[1] account for eligible expenditures which have been incurred and paid for by the borrower out of its budget allocation or its own resources.

9.2 Under this procedure, ADB's payments are made only to the borrower and not to a third party (e.g., supplier or contractor).

9.3 This procedure requires submission of full supporting documentation, unless simplified documentation (Section 9.7-9.29) is approved.

Basic Requirements

9.4 A signed withdrawal application (WA) (Appendix 7A) must be submitted to ADB together with a summary sheet (Appendix 7B) and the required supporting documents.

9.5 The expenditures should have been incurred and paid for by the borrower out of its own fund sources.

Supporting Documents

9.6 The evidence or receipt of payment (showing the amount paid, the date of receipt, and the payee) is required to be submitted together with the WA, in addition to the same supporting documents as required under direct payment (Section 7.4), unless simplified documentation (Section 9.7-9.29) is approved.^[2] ADB will return WAs that do not meet the requirements. In addition, the borrower should retain the same supporting documents as required under the direct payment procedure (Sections 7.5 and 4.29).

Simplified Documentation

9.7 Where full documentation is impractical, burdensome, voluminous, or costly, and if the conditions (Section 9.15 or 9.27) are met, ADB may accept simplified documentation using the following procedures:

Narrative Procedures

9.8 The narrative procedures and the check list for reimbursement procedures are shown in Appendix 9A.

Statement of Expenditures Procedure

9.9 The statement of expenditures (SOE) procedure is a simplified procedure requiring no submission of supporting documentation of expenditures below the approved ceiling (Sections 9.18-9.20). If the amount of an individual payment exceeds the approved ceiling, required supporting documents should be submitted to ADB in accordance with applicable procedures.

9.10 The procedure derives its name from the SOE form which is submitted with the WA. The SOE replaces the usual supporting documents and the summary sheet.

9.11 The SOE form provides data on contracts and disbursements of individual payments up to the approved ceiling.

9.12 In the SOE, the representative of the executing agency (EA) or implementing agency (IA) which prepared the SOE certifies the following:

• expenditures have been incurred and paid for proper execution of project activities under the terms and conditions of the loan agreement;

• all documentation authenticating these expenditures has been retained and will be made available for examination by auditors and ADB representatives upon request; and

• payments have not been split to enable them to pass through the approved SOE ceiling.

9.13 For the borrower's convenience, this handbook provides the following SOE forms (a project-specific form approved by ADB [free format] is also acceptable):

• Statement of Expenditures for Payments Not Exceeding Approved SOE Ceiling (Appendix 9B); and

• Statement of Expenditures for Financial Intermediation Loans (Appendix 9C, and Section 11.8).

9.14 SOE procedure may also be used when liquidating or replenishing advances under the imprest account, if provided in the project administration manual (PAM).

• [1] "Borrower(s)" in this handbook refers to borrowers, recipients (of grants), and/or their executing agencies unless the context requires otherwise. Reimbursement may also be made to implementing agencies, if considered appropriate.
• [2] If supporting documents are written in local language, there should be an English translation of important words and items in the documents (e.g., the title of the document, name of the supplier and/ or contractor, description of goods and services, amounts, and dates).