Overview of FY2018 PFTAC Coordinator: David Kloeden

Transcription

1 Overview f FY2018 PFTAC Crdinatr: David Kleden

2 AGENDA OF COORDINATOR S PRESENTATION FY18 PROGRAM Overview Key prgram highlights and utcmes Managing the FY18 wrkplan Resurce utilizatin and expected year-end utturn TA delivery by cuntry

3 AN OVERVIEW OF THE DRAFT FY18 ANNUAL REPORT Only prvided as electrnic draft at this time Fllws frmat f past Annual Reprts, cvers: Prjected FY18 results: activity & financial Prpsed FY19 plan and budget Final versin by June: Will fllw new streamlined IMF standard T be printed in Washingtn T be updated t reflect final utturn & plan

4 FY18 HIGHLIGHTS: PFTAC OPERATIONS BACK TO NORMAL First full Phase V fiscal year f peratins: Appraching mnth 18 f Phase V that runs 66 mnths (Nv 2016 April 2022) if fully funded Strng executin f wrk plan, abve 90 percent f missins and TA days delivered Sufficient funds/liquidity t finance full FY18 budget but likely budget utturn arund 77%, Fund raising reasnable, but still a gap Gd, but incmplete rate f member cntributins 2018 marks the 25 th anniversary f the establishment f PFTAC in 1993 Staff stability: Other than early departure f Chita Marzan (PFM advisr) in February, stable staffing situatin: crdinatr and team f 7 resident advisrs and 4 lcal supprt staff Jb Descriptins instituted fr lcal staff, and tw junir staff grades reclassified higher

5 PFTAC FY18 EFFORTS ARE DELIVERING SUSTAINABLE PFM RESULTS PFM systems cntinue t imprve, cntributing t greater resilience and sustainability f public finance: Wide PEFA base, with new self-assessments supprted in Kiribati & Tkelau With refrm pririties clear, emphasis n Actin Plans/Radmaps, help t Tuvalu Enhancing Surveillance and CD integratin, jined Slmn Island & Timr Leste A-IV Budget Executin & Cntrl gains: Internal Audit training in PNG and Vanuatu and an Internal Audit Charter in Fiji

6 PFTAC FY18 EFFORTS ARE DELIVERING SUSTAINABLE PFM RESULTS PFM systems cntinue t imprve, cntributing t greater resilience and sustainability f public finance: Wide PEFA base, with new self-assessments supprted in Kiribati & Tkelau With refrm pririties clear, emphasis n Actin Plans/Radmaps, help t Tuvalu Enhancing Surveillance and CD integratin, jined Slmn Island & Timr Leste A-IV Budget Executin & Cntrl gains: Internal Audit training in PNG and Vanuatu and an Internal Audit Charter in Fiji Onging effrts t further imprve utcmes and PEFA scres: Strnger Fiscal Reprting: rbust advances in IPSAS cmpliance in Fiji, PNG, Sama, Slmn Islands, Tnga, & Vanuatu Asset Management: Cash Management in Sama (Plicy & Manual); Slmn Islands (training n frecasting); frthcming Kiribati PIMA with FAD. Managing SOE Fiscal Risks: Fiji and Sama and a sub-reginal wrkshp

7 ..WITH IMPACTFUL REVENUE MOBILIZATION REFORMS Revenue mbilizatin effrts are prducing dividends: Updated Revenue Legislatin in Fiji: life insurance, extractive sectr, stamp duty; Nauru: Rev Admin Act; Niue: Incme Tax Act; PNG: Tax Admin Act; Tnga: Cnsumptin Tax Act; Vanuatu: draft Incme Tax Act & Tax Admin Act Mre Effective Organizatinal & Gvernance arrangements, and strengthened cre functins: Mve t Functinal mdel in Kiribati, Niue, and Vanuatu, and design f an LTO in PNG Strengthened Taxpayer Services in Niue, new strategies in Fiji & Palau, new unit in PNG, training in RMI Addressing lw filing/payment cmpliance in Fiji, Slmn Islands, and weak registratin in Kiribati

8 ..WITH IMPACTFUL REVENUE MOBILIZATION REFORMS Revenue mbilizatin effrts are prducing dividends: wrking with partners and using latest tls, but increasing demand exceeds supply : Updated Revenue Legislatin in Fiji: life insurance, extractive sectr, stamp duty; Nauru: Rev Admin Act; Niue: Incme Tax Act; PNG: Tax Admin Act; Tnga: Cnsumptin Tax Act; Vanuatu: draft Incme Tax Act & Tax Admin Act Mre Effective Organizatinal & Gvernance arrangements, and strengthened cre functins: Mve t Functinal mdel in Kiribati, Niue, and Vanuatu, and design f an LTO in PNG Strengthened Taxpayer Services in Niue, new strategies in Fiji & Palau, new unit in PNG, training in RMI Addressing lw filing/payment cmpliance in Fiji, Slmn Islands, and weak registratin in Kiribati PITAA: very strng cllabratin in mst training and increasingly TA delivery, and peer-t-peer initiatives (Fiji t Niue) OCO: jint wrkshp n VAT Fraud Tls: Medium-Term Revenue Strategy (MTRS) Papua New Guinea missin, ISORA wrkshp but demands grw t address revenue needs (e.g. Pacer Plus), but PFTAC delivery is cnstrained: Tax refrms launched r ptins being cnsidered in Palau, Slmn Islands, Timr-Leste Optins t scale-up Revenue prgram being pursued

9 AS FINANCIAL SECTOR VULNERABILITIES ARE ADDRESSED Financial systems are being strengthened t identify and address vulnerabilities, with TA t enhance supervisr capacity and utilizatin f tls and framewrks: Develping and strengthening banking regulatins and prudential nrms, thrugh diagnstic evaluatins and develpment f Supervisin Framewrks and Enhancement Strategies with prgress in Ck Islands, Papua New Guinea, Vanuatu, and the Slmn Islands Supprting banking regulatry refrm in the Nrthern Pacific (FSM, Palau, RMI) thrugh a subreginal wrkshp with the IMF Legal Department. Strengthening bank supervisin in RMI, and facilitated the creatin f supervisin capacity in Tuvalu Respnding t reginal pririties and interests in PFTAC facilitated annual AFSPC meeting in the Ck Islands, with wrkshp tpics f FinTech and Banking Reslutin with agreed future fcus n IT Risk Assessment.

10 AND RELIABLE MACROECONOMIC STATISTICS REMAIN CRUCIAL. Imprvements with statistical methdlgies, and wrking with partners, pushing fr better disseminatin t enhance wider, timelier and cnsistent use f data: Mst PICs received TA, majr beneficiaries Ck Islands, FSM, RSI, and Slmn Islands Natinal Accunts: GDP rebasing using censuses and HIES (Ck Islands, Nauru, Slmn Islands, Tnga, Tuvalu, and Vanuatu); better use f admin/tax data in all cuntries, GDP enhancements (Fiji and Kiribati); mre accurate GDP deflatin (Fiji, Nauru, PNG, Sama) External Sectr: supprt t Ck Islands, FSM & Slmn Islands + 5 PICs frm Thailand GFS prgram scaled-up with new LTX, Chart f Accunt refrm in Ck Islands, Fiji, and Tnga; nw 11 PICSs (up frm 8) reprting t GFS Yearbk; cverage expanding t General Gvernment in Sama, Slmn Islands, and Vanuatu; and public debts statistics cmpilatin starting in Fiji, Sama, Slmn Islands and Vanuatu; and reginal GFS wrkshp.

11 UNDERPINNED BY ROBUST MACROECONOMIC ANALYSIS AND FORECASTING Greater capacity and use f apprpriate mdels fr sund natinal macrecnmic analysis and prgramming is being supprted by the PFTAC macrecnmic prgram: Macrecnmic Prgramming Framewrks nw cntributing t plicy analysis in 10 PICs: Ck Islands, Fiji, Palau, PNG, RMI, Sama, Slmn Islands, Tnga, Tuvalu, and Vanuatu. Assistance prvided t mdel and frecast tax refrm ptins in Palau, RMI, and Vanuatu Delivered hands-n, practical in-cuntry and reginal training, including cllabratively with ther PFTAC prgrams and develpment partners: with real sectr statistics prgram, a wrkshp f bth develpers and users f GDP data with the PFM prgram, and jintly delivered with UN/ESCAP and Sama MF, reginal wrkshp n Medium-term Expenditure Planning fr Sustainable Develpment innvative wrkshp with PFM prgram and ADB funding n Fishing Revenue Frecasting and Management fr PNA members plus Ck Islands and Tkelau

12 REGIONAL TRAINING HAS NOW SCALED BACK UP Table X. PFTAC FY18 Wrkshp details Sectr Partner Lcatin Tpic Duratin (Days) Male Female Ttal Revenue Fiji Auditing Financal Statements Revenue Fiji VAT Fraud Revenue PITAA Sama Senir Managers Wrks hp Revenue FSM Develping Effective Taxpayer Services Revenue IMF/FAD Fiji Internatinal Survey n Revenue Administratin (ISORA) FSS AFSPC Ck Islands Annual AFSPC Meeting and Wrkshp FSS IMF/LEG Guam Financial Sectr Regulatry Refrm fr the Nrthern Pacific Statistics/GFS Fiji Gvernment Finance Statistics Macr/ Stats Fiji Cmpiling and Frecasting GDP Macr/Statistics FSM Cmpiling GDP and Frecasting Revenue PFM Fiji Fiscal Oversight f State Owned Enterprises PFM Fiji Strengthening Budget Executin Cntrls Medium-term Expenditure Planing fr Natinal Sustainable PFM/ Ma cr UN/ESCAP Sama Develpment PFM/ Ma cr ADB RMI Fishing Revenue Frecasting Management Participant Days Ttals: , events: up frm 8 in FY trainees (up frm 178), 1,837 days (up frm 796 days) 46 percent female participatin Crss-sectr events leverage prgrams and bring different agency staff tgether Strng cllabratin with reginal partners(e.g., PITAA, AFSPC, ADB, UN/ESCAP, USP) supprts sustainability & impact

13 Mnitring, Updating, and Reprting f Wrkplan was Enhanced: Applying cnsistent resurce utilizatin accunting acrss prgrams: Mre accurate cunting f LTX and STX days, plus LTX wrk time at PFTAC Instituted lcal Dashbards t track expenses and cmmitments fr STX and Wrkshp Csts and LTX Travel Capacity Develpment Prtal (CD-PORT) IT platfrm is nw peratinal: fr Results Based Management purpses mre later with summary financial data drawn frm back-ffice IMF systems Advisrs nw mre clsely managing and mnitring budget utilizatin: using lcal dashbards and CD-PORT financials MANAGING THE FY2018 WORKPLAN 13

14 MANAGING THE FY2018 WORKPLAN Mnitring, Updating, and Reprting f Wrkplan was Enhanced: Streamlined and repackaged the previus wrkplan frmat, with tw perspectives: (1) by Prgram (e.g. PFM), and (2) by Cuntry, with each plan: 1 t 3 pages lng listing missins/activities in cuntry rder missins are gruped by RBM bjectives and utcmes f the TA and the targeted milestnes with details f resurces (LTX/STX), missin duratin and dates, and expert names Mid-year (end-octber) review f prgram executin, with updated plan reflecting delivery s far, and amendments. Circulated with Nvember Quarterly Reprt Year-End Outturn clearly reflecting riginal and updated plan and prjected delivery thrugh end-april 14

15 FY2018 WORKPLAN MONITORING & REPORTING Wrk Plan - May 2017 t April 2018: Public Financial Management (PFM) - PROJECTED OUTTURN THROUGH END-APRIL Strengthen identificatin, mnitring, and management f fiscal risks Niue Sama Reginal Reginal 6.2 Central fiscal versight and analysis f public crpratin risks are strengthened 6.2 Central fiscal versight and analysis f public crpratin risks are strengthened 6.2 Central fiscal versight and analysis f public crpratin risks are strengthened 6.2 Central fiscal versight and analysis f public crpratin risks are strengthened Scping missin t imprve fiscal risk analysis Imprve fiscal versight f the financial sectr and nncmmercial SOEs Identificatin, mnitring, and management f SOE fiscal risks Wrkshp f Fiscal Oversight f SOEs Planned Inputs (in persn-days) Original Plan Ttal Days: Updated Inputs at Nv 1 (persn-days - changes in TA Area Objective Cuntry Outcme Targeted Activity LTX STX Ttal # LTX STX Ttal # Delivery Status PFTAC resident advisrs ST experts Ttal Number f Missins/ Activities delivered at end-oct Milestnes Cmments Experts Public Fiscal risk assessment and reprting 6.2 Central fiscal versight and Financial framewrk develped by PFTAC and Fiji analysis f public crpratin Identificatin, mnitring, and May % Management adpted by authrities by August risks are strengthened management f SOE fiscal risks Part f PFM Radmap. Marzan Nt requested % July % Replaced by Kiribati PIMA February 2018 Updated Plan Ttal Days: Delivered by Oct 31: Percentage f Revised Plan: 50% 64% 59% Prjected Outturn t end- April (persn-days - changes in red) % % Prjected Outturn by April 30, 2018: Percentage f Mid-Year Revised Plan: 99% 85% 90% 86% Percentage f Original Plan: 114% 79% 90% 97% % f updated plan 1. Deliver seminar n fiscal risks t MF staff. 2. Key issues and TA needs identified and priritized. Perfrmance and fiscal risk indicatrs t mnitr SOEs develped by PFTAC and adpted by authrities by Octber Fiscal risk assessment and reprting framewrk develped by PFTAC by April Wrkshp delivered. 2. Participant cuntries identify gaps, next steps and TA needs Builds n TA n general fiscal versight f SOEs. T be crdinated with MCM and FSS advisr Marzan Savenaca frm PFTAC budget; changed t PIMA in Kiribati, subject t Pririty fr cuntries with a C r D PEFA scre in PEFA categry 9 and 10 Marzan/Clvin RBM Objective and Outcme/s Originally planned resurces Updated plan at mid-year Prjected Final Outturn at year-end RBM Milestnes 15

16 FY2018 PROJECTED OUTTURN Financial: Budget $6.9 m, estimated Outturn $5.3 m (77 percent), f which: Resident Advisrs (LTX): budget $2.24 m, utturn $2.10 m (94 percent) Shrt-Term Experts (STX): budget $2.04 m, utturn $1.46 m (77 percent) Travel: budget $0.44 m, utturn $0.34 m (78 percent) Wrkshps/seminars: budget $1.22 m, utturn $0.89 m (73 percent) Other csts: budget $0.64m, utturn $0.29m (46 percent) Activity: (measured in LTX/STX field persn days): Planned 149 missins, 138 delivered (93 percent) Planned 1,911 TA days, utturn 1,830 days (96 percent) Of which, PFM: 504 f 561 days (90%); Revenue: 482 f 441 days (109%); FSS 255 f 308 days (83%); RSS 289 f 290 days (100%); GFS 163 f 167 days (98%); Macr 137 f 144 days (95%) Plus 732 days f LTX time at PFTAC, with 740 LTX and 1,090 STX missin days = 2,562 TA Days 16

17 FY2018 PROJECTED OUTTURN 17

18 FY2018 PROJECTED OUTTURN 18

19 FY2018 PROJECTED OUTTURN 19

20 Majr beneficiaries/activities (10 percent r mre f resurces): (Sub-)Reginal, mstly wrkshps, plus LTX time at PFTAC: 560 days, 21.8 % f resurces Papua New Guinea: 292 days, 11.4 % f resurces Vanuatu: 257 days, 10.0 % f resurces Mderate beneficiaries (4 < 10 percent f resurces): Fiji (250 days, 9.8 %); Slmn Islands (184 days, 7.2%); Sama (176 days, 6.9 %); Kiribati (166 days, 6.5 %); Ck Islands (116 days, 4.5 %); RMI (113 days, 4.4 %) Targeted TA users: FY18 OUTTURN BY COUNTRY Palau (96 days, 3.7 %); FSM (70 days, 2.7%); Tnga (67 days, 2.6 %); Tuvalu (61 days, 2.4 %); Nauru (49 days, 1.9 %); Niue (41 days, 1.6%); Timr-Leste (39 days, 1.5 %); Tkelau (25 days, 1.0 %) 20

21 300 Expert Missin Field Days Delivering TA FY18: May April ,830 TA Days (includes 740 LTX and 1,090 STX Field Missin Days) 16.0% Reginal, 14.0% Reginal Papua New Guinea, 11.6% Papua New Guinea Vanuatu, 10.9% Fiji, 10.2% Kiribati, 8.0% Vanuatu Fiji Kiribati Slmn Islands Slmn Islands, 7.8% Sama, 7.5% Ck Islands, 5.7% 0 Palau, 5.2% Rep f Marshall Islands (RMI), 4.5% 0 FSM, 3.3% Tnga, 2.8% Nauru, 2.1% Tuvalu, 2.1% 12 Niue, 1.7% Tkelau, 1.2% Timr-Leste, 1.1% Sama Ck Islands Palau Rep f FSM Tnga Nauru Tuvalu Niue Tkelau Timr-Leste Marshall Islands (RMI) 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Macr PFM Statistics FSS Revenue Percent 21

22 600 Expert Days Delivering and Backstpping TA FY18: May April ,562 TA Days (includes 740 LTX and 1,090 STX Missin Days plus 732 LTX Backstpping Days at PFTAC) 25.0% Reginal, 21.8% % 400 Papua New Guinea (PNG), 11.4% 15.0% Vanuatu, 10.0% Fiji, 9.8% Reginal Papua New Guinea (PNG) Slmn Islands, 7.2% Sama, 6.9% Vanuatu Fiji Slmn Islands Kiribati, 6.5% Ck Islands, 4.5% Marshall Islands (RMI), 4.4% Sama Kiribati Ck Islands Marshall Islands (RMI) Palau Palau, 3.7% Micrnesia (FSM) Micrnesia (FSM), 2.7% 10.0% Tnga, 2.6% 5.0% Nauru, 1.9% Tuvalu, 2.4% Timr-Leste, 1.5% Niue, 1.6% Tkelau, 1.0% % Tnga Tuvalu Nauru Niue Timr-Leste Tkelau LTX Missin Days LTX Days at PFTAC STX Days n Missin % Ttal 22

23 Thankyu.