Pakistan Managing Fiduciary Risk
|
|
- Willis Benson
- 5 years ago
- Views:
Transcription
1 Pakistan Managing Fiduciary Risk Introduction This analysis is intended to supplement an assessment of the developmental benefits of direct budgetary support to Pakistan. This report is in line with DFID s guidance on Managing Fiduciary Risk. It analyses the system of public financial management in Pakistan and assesses the fiduciary risk. The information has been extracted from recent reports 1 and a visit to Pakistan with the World Bank PIFRA team in Jan It does not incorporate ongoing work for the Public Expenditure Review or SAC III discussions. Summary This analysis concludes that the level of risk for Direct Budget Support to Pakistan is high, but with very different levels of risk at the different levels of government. At the sub-government (district, tehsil and union) level, this risk is extremely high; at the provincial level, good financial management is limited; at the federal level, there is evidence of improvements, which constitute Transformational activities [that] may warrant toleration of a higher degree of risk than more transactional activities. The risk also varies across the three key processes of Budget Formulation, Budget Execution and Independent Oversight. In diagrammatic form, the exposure to the sources of risk is: Budget Formulation Budget Execution Indep t Oversight Federal Medium Exposure Low Exposure Low Exposure Provincial High Exposure Medium Exposure Medium Exposure Sub- Governmental High Exposure High Exposure High Exposure Before 1999, the quality of public financial management in Pakistan was very low. Under Musharraf, political commitment to better financial management has led to short-term improvement in the processes of Budget Execution and Independent Oversight, mainly at the Federal Level of Government. Substantial weaknesses in Pakistan s financial management system still remain in the Budget Formulation process, and in all three processes at the Provincial and Sub-Governmental Levels. In terms of Budget Formulation : fiscal management responsibilities are unclear and pose considerable extra fiduciary risk to DFID in the context of devolution. The lack of fiscal space is the major issue that confronts both Federal and Provincial Governments. Some 90 percent of the Recurrent Budget is effectively not subject to scrutiny. There is little emphasis on performance orientation in budget Formulation. 1 Country Financial Accountability Assessment Part 1, June 2001, World Bank Accountable Fiscal Management Framework, March 2002, IMF Report on the Observance of Standards and Codes FT Module, Pakistan, Nov 2000, IMF 1
2 These weaknesses will only be addressed by systemic reform and reforms are underway. However, there are serious obstacles to their successful implementation. Reforming Budget Formulation depends on a Medium-Term Budget Framework and good cost classification. The efforts to improve cost classification are focused on the implementation of the New Accounting Model. The roll out of NAM is a priority, which is not being sufficiently addressed at present. This has an impact on the systemic reform of the weaknesses at the Provincial and Sub-Governmental Levels. The increase in expenditure at the sub-governmental level from 5% to 15% of total government expenditure confers a special responsibility on the CGA to account for, or at a minimum establish a process to account for these funds. However, the independence of the CGA has not materialised in practice. This lack of authority may have impeded the CGA s attempt to establish his mandate over accounting at the sub-governmental levels. The weakness of the CGA s position has also exposed divisions with the Provincial Governments about the provincialisation of accounts, (c.f. the Local Government Ordnance), which may exacerbate the lack of control of sub-governmental accounting. In conclusion, the CGA has a key role to maintain effective budget Formulation and execution during devolution and this is not happening meaning there is still a high level of fiduciary risk. In the medium-term, the government s strategy to achieve reforms of the public finance system relies heavily on the ongoing PIFRA reforms. The end result will be a highly formalised and computerized system of financial management. Actual progress on PIFRA I has been very slow. It is not yet possible to say whether PIFRA I will be implemented successfully. In reality, the major implementation issues lie ahead and there is no clear project implementation plan against which to prioritise activities or allocate resources. While it is so difficult to move forward, there are two major threats to the short-term improvement in financial control (Budget Execution and Independent Oversight). First, the reversion to a more democratic form of government may test the sustainability of the short-term improvement, coming as it does before the institutionalisation of reform. Second, the usefulness of the Fiscal Monitoring Committees may have plateaued. They were very useful as shock tactics but a committee is rarely accountable. Good internal control must lie within the management of the departments/ministries. In conclusion, the financial probity practiced under Musharraf has taken reform of financial control and independent oversight as far as it is likely to go without systemic reform of financial management. The obstacles to reform are considerable and the expectation of systemic improvement is limited. This leaves considerable weaknesses at the Provincial and Sub-Governmental Levels that are sources of fiduciary risk. Even at the Federal Level, a major source of fiduciary risk remains in the process of Budget Formulation because the link between resource allocation and policy objectives is weak. Assessment of progress towards good practice principles The grades have not been benchmarked against other countries and it would be misleading to compare across countries. Grades are conservative and based on results, not the prospects or intentions of reform. The ratings (A to C) reflect the need to make a more subtle distinction than pass or fail. A represents a situation where there is basic compliance, although coverage may not be 100%. A score of B indicates that there are some significant weaknesses in compliance or that the 2
3 procedures need to be changed. A score of C indicates substantial failure to comply with the rules or that the system will require substantial upgrading to meet the standard. 3
4 Good Practice Principles A clear set of rules governs the budget process Benchmarks for Assessment 1. A budget law, specifying fiscal management responsibilities, is in operation Rating (A to C) and current status Rating B The operational rules for preparing and executing Federal Government budgets are defined in the General Financial Rules of the Central Government, the Rules of Business, and the New System of Financial Control and Budgeting (NSFCB), June Budget management rules for the Provincial Governments are presented in corresponding manuals prepared by Governments of Punjab and Sindh, while NWFP and Balochistan follow federal procedures. In practice, a weak CGA and devolution pose considerable extra fiduciary risk to DFID. The GoP enacted a Controller General of Accounts Ordinance in The new Ordinance transfers the responsibilities for the preparation and maintenance of the accounts of the Federation, the Provinces and Districts from the Auditor General to a Controller General of Accounts (CGA). However, the independence of the CGA has not materialised in practice. The increase in expenditure at the sub-governmental level from 5% to 15% of total government expenditure confers a special responsibility on the CGA to account for, or at a minimum establish a process to account for these funds. This lack of authority may have impeded the CGA s attempt to establish his mandate over accounting at the sub-governmental levels. The weakness of the CGA s position has also exposed divisions with the Provincial Governments about the provincialisation of accounts, (c.f. the Local Government Ordnance), which may exacerbate the lack of control of sub-governmental accounting. In conclusion, the CGA has a key role to maintain effective budget Formulation and execution during devolution and this is not happening meaning there is still a high level of fiduciary risk. 4
5 The budget is comprehensive 1. All general government activities are included in the budget 2. Extra budgetary expenditure is not material Rating C At the sub-government level, expenditure will increase from 5% to 15% of total government expenditure. This raises key issues about financial control and financial information at the sub-governmental level. This section deals with the financial information aspect. If the New Accounting Model is applied to the District, Tehsil and Union Levels, the financial information can be integrated into the national accounts. If not, the information can only be consolidated, i.e. one budget line for 15% of government expenditure with no capacity to see a national picture of what this is spent on. This is a serious step away from transparency. However, even if the information is integrated under NAM, PIFRA, which (in time, probably) will bring full automation of accounting to Federal and Provincial Levels, is too complicated to apply to tehsil and union level accounts. So data from the sub-governmental level would still need to be integrated, which would be difficult. This issue has not been picked up and addressed at a sufficiently senior level. n.b. This is a classic example of the problems caused by PIFRA not having an experienced project manager with an integrated project plan, which would include the introduction of the New Accounting Model. The Accountable Fiscal Management Framework report supports the conclusion of the IMF s ROSC-FT and the GoP s Debt Reduction and Management Strategy report that the Federal budget has in the past failed to manage contingent liabilities, tax expenditures and quasi-fiscal activities (QFAs). Pakistan has also created considerable pressure on the budget through inadequate treatment of public debt in the budget preparation process of the Federal Government and through its past creation of assets leaving maintenance costs severely underprovided for. 5
6 The budget supports propoor strategies 1. Budget allocations are broadly consistent with any medium term expenditure plans for the sector or for the overall budget 2. Account Code Classifications are published and applied In 2002/3 tax reforms have reduced tax expenditures (i.e. exemptions) from 1% to 0.6% of GDP. The omission of contingent liabilities is a significant factor as in FY the losses of public sector enterprises amounted to 1 percent of GDP. QFAs have reduced but continue to exist in the gas sector and the power sector as electricity tariffs of WAPDA and KESC remain below cost recovery prices. This causes substantial financial stress, as the government has to provide explicit budget support as well as borrowing guarantees. Public debt management is still constrained by lack of coordination and inadequate monitoring. Budgeting for almost all the resources under the Recurrent Budget has taken place in a strictly incremental manner. As a result, completed development projects have continued to move over to the Recurrent Budget irrespective of the lack of resources to cater for them, with consequent under-funding and poor service delivery. Rating C The Federal Government has tried to improve the FY budget preparation processes and in particular the coordination between current and development budgets. The Budget Call Circular of , has identified the following new procedures: (i) preparation of a draft macroeconomic framework, and sectoral ceilings and their approval by the Cabinet by November; (ii) submission of Ministry proposals based on mission statements and performance indicators by December; (iii) joint review of current and development expenditures by the Priorities Committee in consultations with the line Ministries to be completed by end of February; and (iv) final submissions and estimates to be prepared by March and April. In practice, the lack of fiscal space is the major issue that confronts both Federal and Provincial Governments. Some 90 percent of the Recurrent Budget is effectively not subject to scrutiny. The budget process allows little 6
7 The budget is a reliable guide to actual expenditure 1. Budget outturn shows a high level of consistency with the budget scope for a Ministry to scale back, or close down, a given permanent activity that is no longer a priority. The result is a consolidation of the existing structure of activities irrespective of its efficiency or the nature of the outputs that are associated with it. There is also little emphasis on performance orientation in budget Formulation. Systemic reform through a medium-term expenditure framework aims to link resource allocation to policy objectives. However, the ability to target, monitor and assess expenditure in social sectors has been and may continue to be undermined by poor cost classification. The efforts to improve cost classification are focused on the implementation of the New Accounting Model. The roll out of NAM is a priority, which is not being sufficiently addressed at present. NAM must address the sectors outside the scope of PIFRA, (Defence, Foreign Affairs, SOEs & Sub- Governmental Level) but this is currently not happening. The poor implementation of NAM has also led to confusion over the Budget Circular. This has led to one demand from the MoF for budgets according to the old rules and one demand from the CGA / PIFRA team for figures under NAM. It is not certain what the result will be! For the medium term, expenditure is likely to be poorly targeted resulting in failure to meet policy objectives. Rating C Although current results have improved significantly, this characteristic of fiduciary risk remains high. This is the product of a complex interrelationship of processes and it is not clear that the improvement is sustainable, preventing a return to the situation in previous years when, for Federal and Provincial governments, poor budget preparation and implementation processes failed to meet the objective of aggregate fiscal management. 7
8 Expenditure within year is controlled 1. In-year reporting of actual expenditure 2. Systems operating to control Estimates of expenditures in the first seven months of FY revealed that there was a large shortfall of expenditures in the social sectors, and in infrastructure development and that expenditures on non-salary current expenditures and development were particularly affected. Large expenditure increases in debt servicing and retirement of deferred liabilities to utilities have resulted in a shortfall of expenditures in other areas. Thus, at the end of January, development expenditures were only 51% of the prorated expenditures. This has particularly hurt non-salary and development expenditures in health and education sectors: as of end December only 11% and 6% of their annual non-salary SAP budgets had been spent respectively. The conclusion is that deviations in budget implementation reflect inadequate budget preparation processes including overoptimistic resource forecasting, incomplete budgeting of debt service requirements, and lack of prioritization of expenditures. This results in resource shortfalls and irregular disbursements, necessitating cutbacks during the year in budgetary allocations. The consequence is that expenditure during the year is controlled mainly through arbitrary means, such as delayed or inadequate release of budgetary funds; requirements of special clearance from Finance Ministry/Department to incur expenditure; and arbitrary restrictions on certain spending. Rating B The strengthening of control appears to have been the result of political commitment at the highest level. Structural, procedural and organizational reforms have been introduced and the meltdown of financial control in the late 1990s has been reversed. The change in financial management occurred in April/May 2000, when the MoF refused to release funds to Divisions/Departments until there was a 8
9 virement, commitments and arrears satisfactory level of reconciliation of receipts and expenditures. The Federal and all four provincial Governments last year set up fiscal Monitoring Committees with the responsibility of ensuring the reconciliation and preparation of accurate fiscal accounts. Finance ministries, the Accountant General s office, and State Bank representatives are represented in these committees. Accounts are reconciled with the Central Directorate of National Savings and Banks. At the federal level, close to 100% reconciliation was achieved. The same process of reconciliation occurred at the Provincial Level with less satisfactory results. At the Provincial Level, the CFAA Part 2 will address the efficacy of the FMCs and overall level of financial control in detail and will supersede this analysis. However, the initial conclusion is that capacity is weak and the levels of financial control are variable. At the Sub- Governmental Level, control by the centre is very weak At the federal level, there are two main concerns about these short-term improvements. First, the reversion to a more democratic form of government may test the sustainability of the short-term improvement, coming as it does before the institutionalisation of reform. Second, the usefulness of the Fiscal Monitoring Committees may have plateaued. They were very useful as shock tactics but a committee is rarely accountable. Good internal control must lie within the management of the departments/ministries. The procedural focus on internal control is contained in the New System of Financial Control and Budgeting issued on 30 th June This statement makes the Secretary of the Ministry/Department and the Principal Accounting Officer (PAO) explicitly accountable for the proper implementation of the Budget, and the enforcement of internal controls. The PAO has been made responsible for any laxity in control over expenditure including that on the part of his subordinate. He has also been made 9
10 responsible for effective reconciliation of receipts and expenditure and to hold meetings of the Departmental Accounts Committee (DAC) on a regular basis. There are also clearly established procedures for virement. Virement procedures have to be approved by the Ministry/Departments of Finance at the time of each month s reconciliation processes and the Accountant General office has to be advised. Government carries out procurement in line with principles of value for money and transparency Reporting of Expenditure is timely and accurate 1. Appropriate use of competitive tendering rules 2. Decision-making is recorded and auditable 3. Effective action taken to identify and eliminate corruption 1. Reconciliation of fiscal and bank records is carried out on a routine basis. Insufficient information to make an assessment Rating C moving towards B The trajectory of fiduciary risk for reporting of expenditure is moving from high to medium. The level of reconciliation rates has been greatly improved but the quality of accounting and reporting is low. Accounting, Reporting and Reconciliation issues were indicative of the failures of Pakistan s public sector financial management system due to the breakdown in compliance with established policies and procedures. In the medium-term, the government s strategy to achieve reforms of the public finance system relies heavily on the ongoing PIFRA reforms. The end result will be a highly formalised and computerized system of financial management. PIFRA I encompasses the technical design, systems implementation and business process reengineering. PIFRA II will 10
11 encompass the training and capacity building. In essence, PIFRA II is sequential to PIFRA I. Actual progress on PIFRA I has been very slow. It is not yet possible to say whether PIFRA I will be implemented successfully. In reality, the major implementation issues lie ahead and there is no clear project implementation plan against which to prioritise activities or allocate resources. Furthermore, it is clear that the absence of an experienced project manager on the GoP side is severely hampering progress. 2. Audited annual accounts are submitted to parliament within the statutory period. The Certification of the Auditor General has little meaning because the assessment is at such a high level. It skirts over the deficiencies noted in the individual audit reports. The audit plan produced by the Dept of the Auditor General is not substantiated by results. There is effective independent scrutiny of government expenditure 1. Government Accounts are independently audited. 2. Government agencies are held to account for mismanagement 3. Criticisms and recommendations made by the auditors are followed up Rating C moving towards B The trajectory of fiduciary risk for independent scrutiny of government expenditure is moving from high under the PACs established by the national and provincial assemblies towards medium under the Ad Hoc Public Accounts Committee established by the Musharraf administration. In respect of public auditing and oversight functions, the Government has established Ad Hoc Public Accounts Committees (PACs) comprising members from civil society including eminent retired senior government officials and private sector financial professionals to fill the gap created by the suspension of the Federal and Provincial legislatures across Pakistan. These Committees have started functioning in all jurisdictions and are working towards completely eliminating the multi-year backlog of audit reports under review within the next 12 months. Significantly, the federal ad-hoc PAC has, for the first time in Pakistan, opened up its sittings to representatives of the media. In the area of civil service reform and corruption, the new Federal Public 11
12 Service Commission (FPSC) Ordinance has increased the autonomy of the agency, reduced the scope for political interference, and expanded FPSC s responsibilities in recruitment. The Civil Service Act has been amended to enable premature retirement of inefficient long serving staff. A Removal from Service (Special Powers) Ordinance now enables Governments to expeditiously remove from service officers found to be corrupt or those who have entered the civil service through irregular procedures. The Government is also attacking corruption through a National Accountability Bureau (NAB), which has been established to investigate and prosecute past cases of financial impropriety and corruption. Measures have been taken that have led to the prosecution of politicians, bureaucrats, private sector workers and members of the armed forces. However, it is difficult to assess the overall impact of these measures. 12
International Monetary Fund Washington, D.C.
2008 International Monetary Fund April 2008 IMF Country Report No. 08/129 Pakistan: Report on Observance of Standards and Codes Fiscal Transparency Module An Update This update to the Report on the Observance
More informationPaper 3 Measuring Performance in Public Financial Management
Paper 3 Measuring Performance in Public Financial Management Key Issues 1. Effective financial management of public resources is essential to achieve the objectives of development programmes. It also promotes
More informationManaging Fiduciary Risk when providing Poverty Reduction Budget Support
How to note 22 SEPTEMBER 2004 Managing Fiduciary Risk when providing Poverty Reduction Budget Support Introduction What is the purpose of this note? 1. DFID s policy on managing fiduciary risk sets out
More informationPublic Expenditure and Financial Accountability Baseline Report. Central Provincial Government
Public Expenditure and Financial Accountability Baseline Report Central Provincial Government 1 Table of Contents Summary Assessment... 4 (i) Integrated assessment of PFM performance... 4 (ii) Assessment
More informationAfghanistan Public Financial Management Performance Assessment. Executive Summary. May 2008
Afghanistan Public Financial Management Performance Assessment Executive Summary May 2008 Acknowledgements This is the second PFM Performance Assessment, based on the information as of December 2007, two
More informationOverview of the Budget Cycle. Karen Rono Development Initiatives
Overview of the Budget Cycle Karen Rono Development Initiatives Outline The national budget: what it is, and how it should look like The budget Process: what are the 4 main stages of the process Why do
More informationQUESTIONNAIRE ON FISCAL INSTITUTIONS [COUNTRY]
QUESTIONNAIRE ON FISCAL INSTITUTIONS [COUNTRY] This questionnaire is designed to gather basic information on fiscal institutions and practices as a basis for review of a country's fiscal management system
More informationPublic Financial Management
UNITAR Mustofi Fellowship Hiroshima, Japan 18 22 February 2012! Index! Overview and Objectives! Limitations and Problems! Public Financial Systems! Financial Management System Boundaries! Framework! Government
More informationStrengthening Medium Term Budget Frameworks
Strengthening Medium Term Budget Frameworks International Consortium on Governmental Financial Management Washington DC, 6 December, 2016 Taz Chaponda, Fiscal Affairs Department Outline Definitions Medium-Term
More informationTable 1. Democratic Republic of the Congo: Fiscal Measures Planned for 2001
Table 1. Democratic Republic of the Congo: Fiscal Measures Planned for 2001 Measures Implementation Generation of revenue Depositing of all tax and off-budget revenue with the Central Bank of the Congo
More informationSECTOR ASSESSMENT (SUMMARY): PUBLIC SECTOR MANAGEMENT (PUBLIC EXPENDITURE AND FISCAL MANAGEMENT) Sector Performance, Problems, and Opportunities
Improving Public Expenditure Quality Program, SP1 (RRP VIE 50051-001) SECTOR ASSESSMENT (SUMMARY): PUBLIC SECTOR MANAGEMENT (PUBLIC EXPENDITURE AND FISCAL MANAGEMENT) 1 Sector Road Map 1. Sector Performance,
More informationPublic Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Report No. 48652-PK Pakistan Public Expenditure and Financial Accountability Assessment
More informationSPECIFIC TERMS OF REFERENCE. EU contribution to 2012 Federal PEFA assessment in Pakistan
SPECIFIC TERMS OF REFERENCE EU contribution to 2012 Federal PEFA assessment in Pakistan FWC BENEFICIARIES 2009 - LOT 11: Macro economy, Statistics and Public finance management DCI-ASIE/2011/277245/1 1
More informationFINANCIAL MANAGEMENT ASSESSMENT
Greater Malé Environmental Improvement and Waste Management Project (RRP MLD 51077) EXECUTIVE SUMMARY FINANCIAL MANAGEMENT ASSESSMENT 1. The financial management assessment (FMA) was conducted for the
More informationInternational Monetary Fund Washington, D.C.
2010 International Monetary Fund May 2010 IMF Country Report No. 10/138 November 2009 January 29, 2001 January 29, 2001 January 29, 2001 January 29, 2001 Maldives: Action Plan for PFM Reforms Based on
More informationREVENUE AND EXPENDITURE MANAGEMENT
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized TECHNICAL BRIEF REVENUE AND EXPENDITURE MANAGEMENT Nam Theun 2 Hydroelectric Project
More informationIslamic Republic of Pakistan Country Financial Accountability Assessment
Report No. 27551-PAK Islamic Republic of Pakistan Country Financial Accountability Assessment December 30, 2003 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public
More informationIslamic Republic of Pakistan Punjab Public Financial Management and Accountability Assessment
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Report No. 32569-PAK Islamic Republic of Pakistan Punjab Public Financial Management
More informationOFFICIAL DOCUMENTS. Republic of Seychelles Ministry of Finance, Trade and the Blue Economy. Public Disclosure Authorized. Public Disclosure Authorized
Public Disclosure Authorized Public Disclosure Authorized Mr. Jim Yong Kim President The World Bank Group Washington DC OFFICIAL DOCUMENTS Republic of Seychelles Ministry of Finance, Trade and the Blue
More information2. PEFA indicators and report
2. PEFA indicators and report Introduction to PEFA (2011 version) Skopje, Macedonia February 2015 PEFA Secretariat The PEFA Framework Launched in June 2005, updated 2011 (upgraded extensively 2015 - draft)
More informationPublic Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Report No.
Project Name Region Sector Project ID Borrower Report No. PID7363 Pakistan-Structural Adjustment Loan South Asia Banking, Power, Gas and Tax Administration PKPE59323 The Government of Pakistan Ministry
More informationSECTOR ASSESSMENT (SUMMARY): PUBLIC SECTOR MANAGEMENT 1
Country Partnership Strategy: Cambodia, 2014 2018 Sector Road Map SECTOR ASSESSMENT (SUMMARY): PUBLIC SECTOR MANAGEMENT 1 1. Sector Performance, Problems, and Opportunities 1. Lagging public sector management
More informationOpening Remarks by Mr. D. Paligadu, Director MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT Opening Address
Opening Remarks by Mr. D. Paligadu, Director MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT Opening Address Seminar on Prevention and Management of Government Expenditure Arrears: Theory and Practice Distinguished
More informationReforms to Budget Formulation in Uganda
Reforms to Budget Formulation in Uganda The challenges of building and maintaining and a credible process Tim Williamson tim@praxisdevelopment.net 1 Why Uganda? Successful Reforms to Public Expenditure
More informationSIERRA LEONE HIPC EXPENDITURE TRACKING ASSESSMENT AND ACTION PLAN (AAP)
SIERRA LEONE HIPC EXPENDITURE TRACKING ASSESSMENT AND ACTION PLAN (AAP) PREPARED BY THE WORLD BANK AND THE IMF IN COLLABORATION WITH THE AUTHORITIES OF SIERRA LEONE Douglas Addison (WB), Renato Villela
More informationGovernment Budgeting Cycle; Lessons & Opportunities for Participation by Accountants. CPA Andrew Rori
THE 4 th PUBLIC SECTOR ACCOUNTANTS CONFERENCE Government Budgeting Cycle; Lessons & Opportunities for Participation by Accountants CPA Andrew Rori Sarova Whitesands & Beach Hotel, Mombasa County, Kenya:
More informationIslamic Republic of Pakistan: Pehur High Level Canal Extension Project
Pehur High Level Canal Extension Project (RRP PAK 47024) (Supplementary Appendix A) Financial Management Assessment June 2016 Project Number 47024-004 Islamic Republic of Pakistan: Pehur High Level Canal
More informationLINKED DOCUMENT 2: PUBLIC EXPENDITURE AND FINANCIAL ACCOUNTABILITY (PEFA) 1
Policy-Based Lending 2008 2017: Performance, Results, and Issues of Design, Linked Document 2 LINKED DOCUMENT 2: PUBLIC EXPENDITURE AND FINANCIAL ACCOUNTABILITY (PEFA) 1 A. Armenia: 2008 and 2013 1. Overall,
More informationEXCEL PROFESSIONAL INSTITUTE LECTURE 6 BUDGETS AND BUDGETING IN THE PUBLIC SECTOR
EXCEL PROFESSIONAL INSTITUTE LECTURE 6 BUDGETS AND BUDGETING IN THE PUBLIC SECTOR A. The Context of Public Financial Management & Accounting 10 MARKS Differences and similarities between the public sector
More informationDraft Policy Brief: Revised Indicator 9a for the Global Partnership Monitoring Framework
Draft Policy Brief: Revised Indicator 9a for the Global Partnership Monitoring Framework March 2015 This policy brief has been produced with the kind assistance of the European Union and the German Ministry
More informationPublic Finance Reforms in Kenya Some Emerging Issues and their Relevance under the Context of Devolution
Society for International Development Public Finance Reforms in Kenya Some Emerging Issues and their Relevance under the Context of Devolution Introduction The Government of Kenya has made deliberate efforts
More informationCHAPTER 6. MAKING THE NATIONAL BUDGET THE CENTRAL INSTRUMENT OF POLICY AND REFORM
CHAPTER 6. MAKING THE NATIONAL BUDGET THE CENTRAL INSTRUMENT OF POLICY AND REFORM 6.1 Previous chapters have looked at important outcomes of the PFM system; the next two focus on the PFM system itself,
More informationMozambique: Better Budget Machinery First Focus of Reforms
ISSN 1608-7143 OECD JOURNAL ON BUDGETING Volume 6 No. 2 OECD 2006 Mozambique: Better Budget Machinery First Focus of Reforms by José Sulemane* Mozambique is undergoing a number of major reforms in the
More informationPakistan Policy Note 14
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK GROUP SOUTH ASIA REGION June 2013 Pakistan Policy Note 14 Saeeda Sabah
More informationModule 2 Planning and Budgeting Processes
Module 2 Planning and Budgeting Processes 7 HOURS By the end of this module, the participants will have: LEARNING OUTCOMES discussed the process of budget decision-making in Kenya, focusing on public participation;
More informationEnsuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements
Ensuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements Jackie Manche, Chief Executive Officer, Independent
More information4/7/2015. Group. Governance and Legislation
Group 3 Governance and Legislation DIPLOMA IN PUBLIC ACCOUNTABILITY MINIMUM MUNICIPAL COMPETENCY PROGRAMME Karel van der Molen Module 2 Intergovernmental Fiscal Relations, Legislation and Policies affecting
More informationTechnical Assistance Report
Technical Assistance Report Project Number: 40280 September 2007 Islamic Republic of Afghanistan: Technical Assistance for Support for Economic Policy Management (Cofinanced by the Government of Australia
More informationP E F A Public Expenditure and Financial Accountability
NEPAL P E F A Public Expenditure and Financial Accountability An Assessment of the Public Financial Management Performance Measurement Framework (As of FY2005/06) February 2008 Ministry of Finance Singha
More informationRecommendation of the Council on Good Practices for Public Environmental Expenditure Management
Recommendation of the Council on for Public Environmental Expenditure Management ENVIRONMENT 8 June 2006 - C(2006)84 THE COUNCIL, Having regard to Article 5 b) of the Convention on the Organisation for
More informationGOVERNMENT BUDGETING
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Intergovernmental Fiscal Relations and Local Financial Management February 24-March 5,
More informationdepartment of human settlements eastern cape, south africa
department of human settlements eastern cape, south africa expenditure tracking report 2009/2010 yeukai mukorombindo Eastern Cape Department of Human Settlements Expenditure Tracking Report 2009/10 Yeukai
More informationPRIORITIES ALBANIA MAY 2013
www.sigmaweb.org PRIORITIES ALBANIA MAY 2013 This document has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official
More informationPEFA Training. Dakar, Senegal January & February 1, #PEFA. PEFA Secretariat
www.pefa.org #PEFA PEFA Training Dakar, Senegal January 30-31 & February 1, 2019 PEFA Secretariat Improving public financial management. Supporting sustainable development. INTRODUCTION Introductions Participant
More informationThis is PFM. Matt Andrews, Marco Cangiano, Neil Cole, Paolo de Renzio, Philipp Krause, and Renaud Seligmann. CID Working Paper No.
This is PFM Matt Andrews, Marco Cangiano, Neil Cole, Paolo de Renzio, Philipp Krause, and Renaud Seligmann CID Working Paper. 285 July 2014 Copyright 2014 Andrews, Matt; Cangiano, Marco; Cole, Neil; de
More informationLimited Repeat and Sectoral PEFA Trinidad and Tobago. Final Report. Volume 1 - Central Government
Limited Repeat and Sectoral PEFA 2013 Trinidad and Tobago Final Report Volume 1 - Central Government January 2014 The contents of this publication are the sole responsibility of ACE International Consultants
More informationOpen Budget Survey 2015 Myanmar
Open Budget Survey 2015 Section 1. Public Availability of Budget Docs. Section One: The Availability of Budget Documents contains a series of four tables that allow the researcher to examine and map the
More informationThe World Bank MW: Mining Governance and Growth Support Project (P120825)
Public Disclosure Authorized AFRICA Malawi Energy & Extractives Global Practice IBRD/IDA Investment Project Financing FY 2011 Seq No: 10 ARCHIVED on 05-Jan-2018 ISR28752 Implementing Agencies: Government
More informationBENIN: COUNTRY FINANCING PARAMETERS
BENIN: COUNTRY FINANCING PARAMETERS BENIN: COUNTRY FINANCING PARAMETERS May 5, 2005 Summary 1. This note provides the supporting analysis and background for the country financing parameters under the new
More informationRecent Experiences in Assessing Public Infrastructure Management in Sri Lanka
Recent Experiences in Assessing Public Infrastructure Management in Sri Lanka Session II: Enhanced Framework For Public Investment Public Investment Processes And Benchmarking Tokyo Fiscal Forum 2018 June
More informationEN AIDCO/ (YYYY) D/NNN EN EN
EN AIDCO/ (YYYY) D/NNN EN EN ANNEX 1. IDENTIFICATION Title/Number St. Kitts and Nevis Accompanying Measures for Sugar Protocol Countries Allocation 2010 CRIS Number: 022-412 Budget heading Budget line
More informationStrengthening Public Financial Management and Accountability
T H E R E P U B L I C O F U G A N DA National Consultative Budget Conference FY2014/2015 Strengthening Public Financial Management and Accountability By Keith Muhakanizi Permanent Secretary/Secretary to
More informationTANZANIA: TRACKING POVERTY-REDUCING SPENDING: COUNTRY ASSESSMENT AND ACTION PLAN (AAP) December 3, 2001
TANZANIA: TRACKING POVERTY-REDUCING SPENDING: COUNTRY ASSESSMENT AND ACTION PLAN (AAP) Prepared by Fund staff 1 In collaboration with World Bank staff and the Tanzanian authorities December 3, 2001 1 The
More informationPUBLIC FINANCE MANAGEMENT SEMINAR. Overview of the PFM Regulations
PUBLIC FINANCE MANAGEMENT SEMINAR Overview of the PFM Regulations Mountain Breeze Hotel Embu, 28 th - 29 th September 2017 Uphold. Public. Interest Session Focus By the end of the session you will cover
More informationTHE BUDGET ACT, 2014 ARRANGEMENT OF SECTIONS PART I PRELIMINARY PROVISIONS PART II MACROECONOMIC AND FISCAL FRAMEWORK
THE UNITED REPUBLIC OF TANZANIA ISSN 0856-35X BILL SUPPLEMENT No. 13 31 st October, 2014 to the Gazette of the United Republic of Tanzania No. 44. Vol. 95 dated 31 st October, 2014 Printed by the Government
More informationSECTOR ASSESSMENT (SUMMARY): INDUSTRY AND TRADE
Stepping Up Investments for Growth Acceleration Program- Subprogram 2 (RRP INO 48134) SECTOR ASSESSMENT (SUMMARY): INDUSTRY AND TRADE 1. This sector assessment describes the binding constraints to achieving
More informationFINANCIAL MANAGEMENT OF PARLIAMENT BILL
REPUBLIC OF SOUTH AFRICA FINANCIAL MANAGEMENT OF PARLIAMENT BILL (As amended by the Select Committee on Financial National Council of Provinces) (The English text is the offıcial text of the Bill) (SELECT
More informationSUMMARY FINANCIAL MANAGEMENT ASSESSMENT
A. Introduction Emergency Assistance for Relief and Recovery from Typhoon Yolanda (RRP PHI 47337) UMMARY FINANCIAL MANAGEMENT AEMENT 1. This financial management assessment was prepared in accordance with
More informationActions Needed to Mitigate Inconsistencies in and Lack of Safeguards over U.S. Salary Support to Afghan Government Employees and Technical Advisors
OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION Actions Needed to Mitigate Inconsistencies in and Lack of Safeguards over U.S. Salary Support to Afghan Government Employees and Technical
More informationDraft Natural Resource Fiscal Transparency Code
Draft as of May 9, 2016 Draft Natural Resource Fiscal Transparency Code A. FISCAL TRANSPARENCY PRINCIPLES I. FISCAL REPORTING Fiscal reports should provide a comprehensive, relevant, timely, and reliable
More informationImmunization Planning and the Budget Cycle
Key Points Immunization Planning and the Budget Cycle * Domestic public funding is the most important source of immunization financing, and immunization planning and financing must be considered as a part
More informationFinancial report and audited financial statements. Report of the Board of Auditors
General Assembly Official Records Sixty-ninth Session Supplement No. 5C A/69/5/Add.3 United Nations Children s Fund Financial report and audited financial statements for the year ended 31 December 2013
More informationPakistan: Decentralization Support Program
Validation Report Reference Number: PCV: PAK 2011-53 Program Number: 34328 Loan Numbers: 1935/1936/1937/1938 December 2011 Pakistan: Decentralization Support Program Independent Evaluation Department ABBREVIATIONS
More informationDRAFT PUBLIC EXPENDITURE MANAGEMENT COUNTRY ASSESSMENT AND ACTION PLAN (AAP) GUYANA
DRAFT PUBLIC EXPENDITURE MANAGEMENT COUNTRY ASSESSMENT AND ACTION PLAN (AAP) GUYANA PREPARED BY THE STAFF OF THE IMF AND WORLD BANK IN COLLABORATION WITH THE GUYANESE AUTHORITIES 1 May 27, 2004 1 The mission
More informationConditionality in the World Bank s Development Policy Lending. Background for IDA Consultations, July 2007
Conditionality in the World Bank s Development Policy Lending Background for IDA Consultations, July 2007 2005 Conditionality Review In October 2004, the Development Committee (a ministerial advisory forum
More informationChild Budget in Bangladesh Report
Child Budget in Bangladesh Report Summary of the Child Budget in Bangladesh Report, June 2014 Introduction The report initiated by the Centre for Services and Information on Disability, and supported by
More informationREFORMS IN PUBLIC FINANCIAL MANAGEMENT IN THE CONTEXT OF GREECE'S ECONOMIC ADJUSTMENT PROGRAMMES
REFORMS IN PUBLIC FINANCIAL MANAGEMENT IN THE CONTEXT OF GREECE'S ECONOMIC ADJUSTMENT PROGRAMMES Hellenic Republic Ministry of Finance General Accounting Office of the State The Economic Adjustment Programmes
More informationDESK REVIEW UNDP AFGHANISTAN OVERSIGHT OF THE MONITORING AGENT OF THE LAW AND ORDER TRUST FUND FOR AFGHANISTAN
UNITED NATIONS DEVELOPMENT PROGRAMME DESK REVIEW OF UNDP AFGHANISTAN OVERSIGHT OF THE MONITORING AGENT OF THE LAW AND ORDER TRUST FUND FOR AFGHANISTAN Report No. 1310 Issue Date: 9 October 2014 Table of
More informationGlossary of Key Terms for completing the 2012 OECD Budgeting Practices and Procedures Survey
Glossary of Key Terms for completing the 2012 OECD Budgeting Practices and Procedures Survey Accountability The existence of an obligation to demonstrate that work has been conducted in compliance with
More informationScience and Information Resources Division
MINISTRY OF NATURAL RESOURCES Science and Information Resources Division The mandate of the Ministry of Natural Resources is to achieve the sustainable development of the province s natural resources,
More informationPublic Financial Management Reforms and Gender Responsive Budgeting. Jens Kovsted
Public Financial Management Reforms and Gender Responsive Budgeting Jens Kovsted jak.cebr@cbs.dk Outline 1. Key concepts 2. The budget cycle 3. Different types of PFM reform 4. Gender responsive budgeting
More informationPublic Financial Management (PFMx) Module
Public Financial Management (PFMx) Module 4 The Annual Budget Preparation and Approval This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Fiscal
More informationInternational Monetary Fund Washington, D.C.
2005 International Monetary Fund July 2005 IMF Country Report No. 05/251 Sri Lanka: Report on the Observance of Standards and Codes Fiscal Transparency Module Update This Update to the Report on the Observance
More informationOpen Budget Survey 2015 Saudi Arabia
Open Budget Survey 2015 Section 1. Public Availability of Budget Docs. Section One: The Availability of Budget Documents contains a series of four tables that allow the researcher to examine and map the
More informationGovernance, and Legal and Institutional Arrangements
Governance, and Legal and Institutional Arrangements Based on Client Presentation October 2010 1 Outline Wider institutional structures Coordination challenges Accountability [For issues surrounding the
More informationGOOD PRACTICE CASE STUDY BANGLADESH: CAPACITY DEVELOPMENT IN PUBLIC FINANCIAL MANAGEMENT 1 BACKGROUND
GOOD PRACTICE CASE STUDY BANGLADESH: CAPACITY DEVELOPMENT IN PUBLIC FINANCIAL MANAGEMENT 1 BACKGROUND 1. This case study reviews the efforts of Government of Bangladesh (GoB) to develop capacity in and
More informationREPORT 2015/095 INTERNAL AUDIT DIVISION
INTERNAL AUDIT DIVISION REPORT 2015/095 Review of recurrent issues identified in recent internal audit engagements for the Office for the Coordination of Humanitarian Affairs 8 September 2015 Assignment
More informationAN UPDATE ON NON-PERFORMING LOANS RESOLUTION AND BANKING REFORM IN VIET NAM. by Hoang Tien Loi. Meeting held on April 2006
AN UPDATE ON NON-PERFORMING LOANS RESOLUTION AND BANKING REFORM IN VIET NAM by Hoang Tien Loi Meeting held on 27-28 April 2006 This document reproduces a report by Mr. Hoang Tien Loi written after the
More informationThe PEFA Performance Measurement Framework and the Strengthened Approach to Supporting PFM Reform
The PEFA Performance Measurement Framework and the Strengthened Approach to Supporting PFM Reform Budgeting and Public Financial Management September 2007 Ivor Beazley World Bank Page 1 CONTENT What is
More informationEUROPEAN UNION ACCOUNTING RULE 16 PRESENTATION OF BUDGET INFORMATION IN ANNUAL ACCOUNTS
EUROPEAN UNION ACCOUNTING RULE 16 PRESENTATION OF BUDGET INFORMATION Page 2 of 9 I N D E X 1. Introduction... 3 1.1 Reasons for issuing this accounting rule... 3 1.2 Applicability... 3 1.3 Disclosure...
More informationInternational Monetary Fund Washington, D.C.
2004 International Monetary Fund August 2004 IMF Country Report No. 04/264 Czech Republic: Report on the Observance of Standards and Codes Fiscal Transparency Module Update This update to Report on the
More informationTable 1(a). Pakistan: Quantitative Targets, September 2002 June /
Table 1(a). Pakistan: Quantitative Targets, September 2002 June 2003 1/ (Cumulative flows from July 1, 2002, unless otherwise specified) Outstanding Adj. Adj. Stock Prog. Prog. Act. Prog. Prog. Act. Prog.
More informationThe World Bank NP: Strengthening the Office of the Auditor General (P127040)
Public Disclosure Authorized SOUTH ASIA Nepal Financial Management Global Practice Recipient Executed Activities Specific Investment Loan FY 2012 Seq No: 3 ARCHIVED on 20-Feb-2015 ISR18017 Implementing
More informationAssessment of reallocation warrants in Tanzania
ANALYSIS OF REALLOCATION WARRANTS Final report: Assessment of reallocation warrants in Tanzania July 2014 Scanteam: Team leader Torun Reite and team member Erlend Nordby ANALYSIS OF REALLOCATION WARRANTS
More informationIPSAS WORKSHOP. Key Provisions of the PFM Act 2012 and Mwongozo Code of Governance. Mountain Breeze Hotel - EMBU, 15 th -16 th June 2017
IPSAS WORKSHOP Key Provisions of the PFM Act 2012 and Mwongozo Code of Governance Mountain Breeze Hotel - EMBU, 15 th -16 th June 2017 Uphold. Public. Interest Session Objectives The aims of the Session:
More informationTHE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION REPUBLIC OF TAJIKISTAN
THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION REPUBLIC OF TAJIKISTAN Joint Staff Assessment of the Poverty Reduction Strategy Paper Annual Progress Report Prepared by the
More informationThe World Bank Ghana: Public Financial Management Reform Project (P151447)
Public Disclosure Authorized AFRICA Ghana Governance Global Practice IBRD/IDA Investment Project Financing FY 2015 Seq No: 4 ARCHIVED on 27-Dec-2016 ISR26534 Implementing Agencies: Ministry of Finance
More informationExternal Audit. April 2012
External Audit April 2012 Audit Definition Ex post review of the books of account, financial statements, records of transactions & financial systems Examines the adequacy of accounting systems & procedures,
More informationNovember 17, To the Development Partners of Rwanda:
November 17, 2006 To the Development Partners of Rwanda: Further to the documentation of the sixth review under the PRGF arrangement and the request for a new PRGF arrangement of May 2006, this letter
More informationGovernance Assessment (Summary) Nepal
Governance Assessment (Summary) Nepal Country Partnership Strategy: Nepal, 2013 2017 A. Current State of Governance GOVERNANCE ASSESSMENT 1. Nepal is passing through a historic political transition. The
More informationBangladesh Should Adopt International Public Sector Accounting Standards.
EXECUTIVE SUMMARY 1. This assessment of public sector accounting and auditing is meant generally to help implement more effective Public Financial Management (PFM) through better quality accounting and
More informationLegal and Institutional Frameworks Supporting Accountability in Budgeting and Service Delivery Performance. Veronika Meszarits, Mostar, 4-6 Dec 2007
Legal and Institutional Frameworks Supporting Accountability in Budgeting and Service Delivery Performance Veronika Meszarits, Mostar, 4-6 Dec 2007 1 Supporting performance accountability Introduction
More informationMODULE 3 FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR
MODULE 3 FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR OUTLINES Financial Control of Government Funds. Auditing Practices in the Public Sector. Warrant: Types and System of Operations. Virement Procedure.
More informationSRI LANKA. Country Financial Accountability Assessment (CFAA) Study
SRI LANKA Country Financial Accountability Assessment (CFAA) Study Final Report June 30, 2003 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
More informationExisting Score. Proposed Score
RISK AREA QUESTION 11 Does the country have a process for acquisition planning that involves clear oversight, and is it publicly available? POLITICAL DEFENSE BUDGETS - Decree n 1039-2014 dated 13 March
More informationPublic Administration Reform Strategy a Framework Document for the Public Financial Management Reform
Public Financial Management Reform: Trends and Lessons Learned The Experience of Bosnia and Herzegovina Public Administration Reform Strategy a Framework Document for the Public Financial Management Reform
More informationCase Study. Albania Linking the Medium-Term Expenditure Framework and the GPRS 1
Case Study Albania Linking the Medium-Term Expenditure Framework and the GPRS 1 Alma Kanani Sr. Economist, Poverty Reduction Economic Management, Europe and Central Asia Region Overseas Development Institute
More informationIMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA
IMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA FISCAL TRANSPARENCY AND ACCOUNTABILITY MEETING - MOSCOW, RUSSIA Presented by: Dr Kay Brown Chief Director, Expenditure Planning 29 May 2014 Presentation outline
More informationDecentralization Support Activity Project
CIVIL SERVICE REFORM PROGRAM " DSA Project Brief " Project Report: M-52 March 28, 2005 Decentralization Support Activity Project THE NETHERLANDS MINISTER FOR DEVELOPMENT COOPERATION The DSA project is
More informationThe United Republic of Tanzania Ministry of Finance. Memorandum of Understanding. Between. The Government of the United Republic of Tanzania
The United Republic of Tanzania Ministry of Finance Memorandum of Understanding Between The Government of the United Republic of Tanzania And Development Partners In Support of The Public Finance Management
More information