10/25/2010 Public Financial Management (PFM) Cycle Public Financial - - PDF document

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10/25/2010 1

Presentation on the Implementation

• f the Audit Recommendations

MARARA SHYAKA Patrick Accountant General Ministry of Finance and Economic Planning Public Financial Management (PFM) Cycle Public Financial Management (PFM) Cycle

Budget Preparation

(Support by the National Budget)

Budget Preparation

(Support by the National Budget)

Controls/audits

(Support by Public account; Treasury & Internal Audit)

Controls/audits

(Support by Public account; Treasury & Internal Audit)

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Budget Execution

(Support by the Treasury)

Budget Execution

(Support by the Treasury)

Financial Reports (Support

by the Public Account Unit)

Financial Reports (Support

by the Public Account Unit)

Accounting Support Cycle Accounting Support Cycle

Review of Monthly/Quarterly & Annual Financial Reports Provision of Review Feedbacks & updates of the Financial Reports SmartFMS Development & Rollout

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Site visits &

• nline supports

Classroom /

• n job

Trainings ACCA Training program

Consolidation Structure Consolidation Structure

Overall Consolidated

Treasury & RRA Cluster Central Gov’t Cluster

Public Debt

3

Consolidated Financial Statement Local Gov’t Cluster Dev’t Project Cluster Government Portfolio

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10/25/2010 2

Implementation of recommendations by the Control/Audits Implementation of recommendations by the Control/Audits

Key recommendations Actions taken Improvement in the maintenance

• f

accounting records and reporting

• f

financial Statements;

• Regular Class room & on-the-job training continues to be

held for Budget Officers, Accountants, Directors of Finance and Chief Budget Managers. This includes sensitizing the trainees on the general audit findings and the need to implement audit recommendations in their various budget agencies and compliance with policies and procedures. The latest training covered the entire aspect of the PFM

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cycle (planning, budgeting, procurement, accounting and reporting and oversight) and the OAG provided facilitators for the training as well;

• The IFMIS project implementation team was beefed up

and this has led to the roll out of the core modules of the system to 94 out of 284 budget agencies. The IFMIS has enhanced internal controls and will help minimize record keeping errors and omissions as well as ensure control

• ver the management of bank accounts;

Key recommendations Actions taken Improvement in internal control systems;

• Timely Submission of GoR Consolidated Financial Statements

to the Auditor General has been improved present one was submitted by 30th September;

• Regarding

insufficient supported expenditures and procurement irregularities, they are underway being handled by Internal auditors/audit committees & RPPA respectively;

• Audit committees are being set up across Government and

Implementation of recommendations by the Control/Audits Implementation of recommendations by the Control/Audits

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g p will be expected to investigate issues raised and implement audit recommendations;

• MINECOFIN enforcing the submission of monthly financial

statements from all budget agencies and projects and levies prohibitive penalties for defaulters; Improvement in the management

• f

bank accounts

• pened

& maintained by Budget Agencies;

• Training of the Finance units;
• Closing some redundant accounts, but we also believe that

some of these issues can be solved with the joint efforts from

• ur stakeholders via reduction of requests to open separate

bank accounts; Key recommendations Actions taken Improvement in the management of recoverable amounts from GBEs;

• The recently set-up Government Portfolio Unit has

been beefed up with resources and skills via on-the- job training in order to oversee the efficient operations

• f the GBEs and follow up any receivables;
• Dividends receivables from Government Investments

are all presently recorded; Improvement in the management of

• Management of

the public debt team has been

Implementation of recommendations by the Control/Audits Implementation of recommendations by the Control/Audits

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Public Debt Records; enhanced via ensuring the timely update

• f

information in the debt management system (DMFAS).

• The Treasury team is also ensuring that the public

debt records (hard copies) are well maintained for ease of reference.

• On-the-job training has been provided as well and the

joint support from the Development Partners in availing monthly update status on the funds disbursed to projects will be of great importance; Key recommendations Actions taken Improvement in the reconciliation between Treasury cashbook & Smartgov budget execution system; Discrepancy between Treasury cashbook and Smartgov data has been corrected as per the current situation since there has been full reconciliation; Improvement in the procurement system & filing of documents;

• Regular

Class room &

• n-the-job

training continues to be held for Budget Officers, Accountants, Directors of Finance and Chief Budget Managers This includes sensitizing

Implementation of recommendations by the Control/Audits Implementation of recommendations by the Control/Audits

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Budget Managers. This includes sensitizing the trainees on the general audit findings and the need to implement audit recommendations in their various budget agencies and compliance with policies and procedures.

• As for insufficient supported expenditures and

procurement irregularities, are underway being handled by Internal auditors/audit committees & RPPA respectively;

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10/25/2010 3

Key recommendations Actions taken Improvement in the reconciliation the Smartgov budget execution system & the respective Budget Agencies; Differences between funds transferred from OTR and funds received/recorded by Budget Agencies has been corrected and presently the status is fully reconciled; Improvement in the Treasury General ledger ;

• Reimbursements
• f

balances

• n

travel imprest previously treated as income, which is presently netted off from the previous

Implementation of recommendations by the Control/Audits Implementation of recommendations by the Control/Audits

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p y p payments;

• Suspense accounts have been addressed
• nly remaining some errors of commission

to be solved progressively;

• Ensure the proper roll out of IFMIS as the future budget and

accounting system for the Government as a solution to the financial reporting weaknesses;

• Continue

addressing

• ther

remaining recommendations i l

Key Remaining Challenges Key Remaining Challenges

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progressively;

• Constant follow up to ensure compliance in the implementation of

financial policies and regulations;

• Continuous upgrading and fresh trainings for the existing and new

entrants in Finance and Accounts;

To sum up all these, MINECOFIN is deeply committed to its responsibility

• f

improving the Public Financial Management System (PFM) and believes also in joint

Overall Conclusion Overall Conclusion

10

Management System (PFM) and believes also in joint efforts from all the Stakeholders in achieving the set

• bjectives of the PFM reform strategy.