The Bangladesh Public Financial Management Systems report documents the country's financial management systems covering primarily the areas of budgeting, funds flow, accounting and reporting, and auditing systems. This report also provides insights into the quality of internal control systems, staffing resource capacity, and information technology structure. The intent is to provide project teams and consultants with a better understanding of financial management systems to improve the quality of financial management assessments during project preparation. Find out how high-quality financial management assessments support projects by identifying key risks and enabling the implementation of appropriate actions and reforms to mitigate those risks.
Foreign aid to Indonesia takes the form of loans or grants. The loans can be made either to the government or to state-owned enterprises with a guarantee from the government. This report documents Indonesia's financial management systems covering budgeting, funds flow monitoring and analysis, accounting and reporting, and auditing. It also provides insights into the quality of internal control systems, staff capacity, and information technology structure. The intent is to provide project teams and consultants with a better understanding of financial management systems during project preparation. Find out how high-quality financial management assessments support project implementation through the identification of key risks and enabling the implementation of mitigating actions and reforms.
Fiji's financial reforms were disrupted by the coup of 2000. Since then, Fiji has initiated more targeted reforms. This report, for which work commenced in January 2016, documents the country's financial management systems covering budgeting, funds flow, accounting and reporting, and auditing systems. It provides insights into Fiji's internal control systems, staffing resource capacity, and information technology structure. The intent is to give project teams and consultants a better understanding of the country's financial management systems in order to improve project preparation. Find out how high-quality financial management assessments support projects by identifying key risks and enabling the implementation of appropriate actions and reforms to mitigate those risks.
The objective of the 2015 Colombia Public Expenditure and Financial Accountability (PEFA) assessment is to have an updated diagnosis of the performance of the public financial management (PFM) system in the country so as to (i) determine the progress made with the reforms implemented in recent years by the Government of Colombia (GoC), (ii) understand the impacts of these reforms, (iii) establish the tools and next steps necessary to consolidate the progress made, and (iv) promote long-term economic stability and sustainability. The scope of the PEFA Colombia 2015 exercise covers the Central Government and the assessment analysis period are the last three completed fiscal years (2012, 2013, and 2014), at the time of the assessment (December 2015). The field mission took place in Bogota between November 12 and December 18, 2015, and this report was prepared between January 4 and August 17, 2016, incorporating comments from the Government of Colombia and guest reviewers.
This report documents sri lanka's financial management systems covering budgeting, funds flow, accounting and reporting, and auditing systems. it provides insights into sri lanka's internal control systems, staffing resource capacity, and information technology structure. the intent is to give project teams and consultants a better understanding of the country's financial management systems in order to improve project preparation. find out how high-quality financial management assessments support projects by identifying key risks and enabling the implementation of appropriate actions and reforms to mitigate those risks.
This article describes the use of a chatbot-assisted case study in teaching accountancy students how to design a public financial management system. A case study on the redesign of invoice payment system at the government of Andalucía in the 1980s was delivered to 18 distance-learning postgraduate students via a chatbot that helped explore the problem space. Analysis of conversational interactions and students' feedback provides some support for the use of chatbot-assisted case studies but also some limitations.
How does reforming public financial management (PFM) help to improve governance in developing countries? In both industrialised and developing countriesPFM reforms affect fundamental interests of state andgovernance. Although PFM has steadily grown in importancein development cooperation in recent yearsand such donors as the United Kingdom and Germanyare increasing their engagement in this respect, PFMreforms – such as the strengthening of national auditoffices and the introduction of IT-assisted financialmanagement systems – are still not seen as a separatearea of activity, but frequently from the narrow angleof improving technical efficiency. For PFM reforms tosucceed, however, it is vital that their effects on governance are taken into account. The increased use of modern development cooperationapproaches based on the Paris Declaration principleshas led to an interest being taken in the qualityand efficiency of PFM systems that goes well beyond a direct interest in preventing corruption. Above all,standardised assessment tools have made it possiblefor the quality of PFM systems to be measured systematically in many developing countries and for moretargeted reform programmes to be implemented. However, the contribution made by PFM reforms to the improvement of governance is often underestimated. Four basic dimensions of governance benefit from PFM reforms: • A functioning system of PFM makes actors more accountable to the parliament, the national audit office and the public. • Established PFM structures encourage the separation of powers by seeking to build institutions that are based on a division of labour and equipped with control mechanisms. • PFM reforms help to improve transparency by generating information, by networking sources of information and by making them accessible, this also being a prerequisite for crucial governance reforms, such as decentralisation processes. • PFM processes improve the effectiveness and efficiency of government action and so increase the state's legitimacy. The following conclusions can be drawn: first, it is important to promote such "pioneering institutions" as national audit offices to narrow the gap between de jure and de facto reforms. Second, the principles called for in the context of PFM reform programmes, such as the transparency of budgets and open tendering and procurement procedures, must also be reflected in development cooperation programming itself. Third, PFM reform programmes should be guided by the country's need for reform rather than any fiduciary requirements donors may have. Fourth, development cooperation should be so designed that any adverse effects it may have on governance in developing countries – such as the poaching of qualified government staff for donor projects – are kept to a minimum.
In recent years public budgets have become an increasingly prominent issue in the international development debate. For one thing, more and more countries are developing poverty reduction strategies (PRS) or similar national development agendas that need to be translated into medium-term planning and allocation decisions, which in turn have to be implemented via the annual budget. For another, program-based approaches (PBAs), which primarily make use of recipients countries' own systems and procedures to manage donor funds, are assuming more and more importance in international development cooperation. The risks associated with budget support and other forms of PBAs hinge in crucial ways on the quality of partner countries' public financial management (PFM) systems. PFM systems in most developing countries are marked by substantial shortcomings. As a consequence, donors have developed a large set of diagnostic tools to assess PFM systems in developing countries. The tools are, however, beset by a variety of overlaps and omissions that tend to overstrain scarce capacities among both donors and partners and impact negatively on the quality of the diagnostic work undertaken. In addition, the predominantly donor-driven analyses of PFM systems focus primarily on the assessment of fiduciary risks related to different forms of PBAs and most of the time provide little indication as to the formulation of coherent and sustainable reform strategies. In the Paris Declaration on Aid Effectiveness both donors and recipient governments have committed themselves to developing common frameworks for assessing PFM systems and to systematically integrating these frameworks within partner-led reform and capacity-building strategies. Under the Public Expenditure and Financial Accountability Program (PEFA), several donors have been involved in developing just such a common framework to assess and reform PFM systems in developing countries, Effective and sustainable PFM reform, however, constitutes a considerable challenge for all parties involved. PFM systems are highly path-dependent, and reforming them is first and foremost a political task. Effective reform strategies therefore require strong commitment by all stakeholders, maintenance of momentum for reform over a protracted period of time, a large measure of partner ownership for the reform process, and a willingness on the part of donors to work for extensive coordination, harmonization, and division of labour.
Die Inhalte der verlinkten Blogs und Blog Beiträge unterliegen in vielen Fällen keiner redaktionellen Kontrolle.
Warnung zur Verfügbarkeit
Eine dauerhafte Verfügbarkeit ist nicht garantiert und liegt vollumfänglich in den Händen der Blogbetreiber:innen. Bitte erstellen Sie sich selbständig eine Kopie falls Sie einen Blog Beitrag zitieren möchten.
Governments around the world are facing increasing constraints on their resources, but they must provide better public services. At the same time, there are increasing concerns about mismanagement of funds, lack of transparency, and prevalence of corruption. As part of the efforts to tackle these challenges, the World Bank is supporting countries in modernizing their public financial management (PFM) and implementing financial management information systems (FMIS).
A recently released World Bank Operational Guidance Note provides policymakers with operational guidance on how to ensure that FMIS projects better achieve the desired improvements in PFM outcomes while contributing to good governance. It draws on an extensive body of diagnostic and analytical work and more importantly, the lessons learned from FMIS implementation in more than 80 countries over the last 30 years.
Given its extensive coverage of the three phases of FMIS projects, i.e. the diagnostic, systems development life cycle, and coverage and utilization phases, the Note can be used by policymakers and practitioners to develop their strategies for any stage of FMIS implementation. It includes detailed guidance on how to avoid mistakes in procurement and contract management. It also discusses the potential use of disruptive technologies to maximize returns on existing investments.
Here are some key messages:
An adequate diagnosis of all aspects of budget management – not just accounting and reporting – is fundamental. This review should be undertaken to identify the needs that the system is intended to address before procuring and implementing a new FMIS.
The policy and institutional framework under which FMIS will operate is very important. The effectiveness of an FMIS as a budget management tool depends on its technical robustness as well as the policy and institutional environment, including a comprehensive single treasury account and the accompanying banking arrangements for government funds. It also depends on an appropriate budget classification structure and financial regulations that ensure budgetary compliance. According to the 2016 World Development Report on Digital Dividends, FMIS also needs analog complements to make them effective and protect against downside risks.
Strong government commitment must be sustained throughout the process. This can be fostered through well-designed project management structures, complemented with adequate considerations for training and change management.
System design should be cognizant of larger budget management issues and follow functional and business process requirements of government. System designs that follow predominantly technical considerations will be less effective in solving budget management problems. System implementation strategies should strategically take a phased approach rather than simultaneously implementing a wide set of functionalities that may overstretch client capacity. A modular approach can be more cost-effective, and could prioritize budget execution and reporting to achieve significant progress on budgetary control and cash management.
Transaction processing through FMIS needs to be comprehensive to ensure credible and complete information for financial operations and management reporting. The benefits from an FMIS pertain only to transactions processed through it.
It is important to understand the transaction ecosystem. While ultimately all transactions should be processed through FMIS, first targeting high-value transactions in system deployment will strengthen fiscal discipline. The following principles could help achieve ample coverage (and expenditure control):
All transactions generated at the central Ministry of Finance such as fiscal transfers, subsidies, and debt service payments, should be processed through FMIS; All payroll and civil service pension payments calculated by a central system should be processed through FMIS (these would likely constitute some 30-40% of the total budget); All payments from line ministries or spending units above the transaction threshold should be processed through FMIS While low-value payments should also be processed through FMIS, they can be disbursed through innovative FinTech products such as mobile money or smart cards.
Accountability and budget compliance are necessary for FMIS to be effective in managing public expenditures. This requires significant political commitment to overcome resistance from vested interests.
Governments can take advantage of disruptive technologies and FMIS innovations. There are tremendous opportunities to deploy technologies such as cloud computing, big data, and machine learning, and robotic process automation to improve budget management. When adopting disruptive technologies, it is important to follow good GovTech principles, such as: a citizen-centric approach, and whole-of-government approach rather than ministry-specific solutions.
Ed Olowo-Okere Senior Advisor in the Equitable Growth, Finance, and Institutions (EFI) Vice Presidency at the World Bank. More Blogs By Ed
1
Dr Mitrajeet D.MARAYE
September 11, 2020
That appears to be an excellent tool to improve on good governance in the affairs of government and what is more important is total transparency. It is most important for governments to implement a clear legal requirement to ensure "effective FREEDOM OF INFORMATION". Unfortunately in many developing countries opacity in the affairs of governments and state owned enterprises is a major source of corruption throughout the system.