Upload
others
View
11
Download
0
Embed Size (px)
Citation preview
Public Expenditure &
PEFAFinancial Accountability
IntroductionIntroduction
Public Expenditure &
PEFAFinancial Accountability
Page 2Public Expenditure &
PEFAFinancial Accountability
Outline
Why is a new approach needed?Why is a new approach needed?
What are PEFA’s goals & objectives?What are PEFA’s goals & objectives?
DiscussionDiscussion
Introduction: What is PEFA?Introduction: What is PEFA?1
3
2
5
What are PEFA’s accomplishments & deliverables?What are PEFA’s accomplishments & deliverables?4
P
Page 3Public Expenditure &
PEFAFinancial Accountability
1. Introduction: PEFA in brief
Ø A multi-institution project, jointly-financed by the World Bank, European Commission and the UK (DFID).
Ø The Secretariat, based at the World Bank in Washington, DC, was established in December 2001.
Ø Steering Committee members include: World Bank (PRMPS, OPCFM and OPCPR), IMF, EC, DFID and the Strategic Partnership for Africa (SPA).
Ø Current budget: $5 million over three years.
What is PEFA? …
Public
Expenditure and
Financial
Accountability
Page 4Public Expenditure &
PEFAFinancial Accountability
PEFA partners …
1. Introduction: Our partners
The World BankThe World Bank
The Department for International
Development (DFID)
The Department for International
Development (DFID)
The European Commission
The European Commission
The International Monetary Fund
The International Monetary Fund
France?
Possible Future Partners:
Norway?
Switzerland?
Others?
Public Expenditure &
PEFAFinancial Accountability
Page 5Public Expenditure &
PEFAFinancial Accountability
An overview of public expenditure and financial accountability
Budget Formulation
Governance & Institutional Environment
Executive & Legislative
Branches of Government
Economic Analysis of
Public Spending
Expenditure Monitoring, Reporting &
Auditing
Budget Execution (e.g., cash & debt
mgnt., control, internal audit)
National & Sub-National
Levels
Public Procurement
Expenditure Incidence
PE Process
Institutions
PE in Public Agencies & Enterprises
PE Policy/Impact Poverty
Impact
1. Introduction
Page 6Public Expenditure &
PEFAFinancial Accountability
What value can PEFA add?
Public Expenditure &
PEFAFinancial Accountability
Dissemination of good practice in
integration/coordination
Dissemination of good practice in
integration/coordinationImpartial
perspectiveImpartial
perspective
Encourage coordination across:-Bank departments
-PEFA partners
Encourage coordination across:-Bank departments
-PEFA partners
Independent monitorIndependent monitor
Linking integrated assessments to
follow-up
Linking integrated assessments to
follow-up
Trying out innovative
approaches
Trying out innovative
approaches
Contribute to harmonization of
international standards and benchmarks
Contribute to harmonization of
international standards and benchmarks
1. Introduction
Page 7Public Expenditure &
PEFAFinancial Accountability
Outline
Why is a new approach needed?Why is a new approach needed?
What are PEFA’s goals & objectives?What are PEFA’s goals & objectives?
DiscussionDiscussion
Introduction: What is PEFA?Introduction: What is PEFA?Introduction: What is PEFA?1
3
2
5
What are PEFA’s accomplishments & deliverables?What are PEFA’s accomplishments & deliverables?4
P
Page 8Public Expenditure &
PEFAFinancial Accountability
2. What are PEFA’s goals and objectives?
ü Develop a country-focused, strategic, collaborative and integrated approach to assessing and reforming countries’ public expenditure management systems
ü Support PEFA activities in 10-20 countries over a three year period
ü Identify PE performance indicators & benchmarks to address developmental and fiduciary objectives
ü Reduce transaction costs of assessments for countries
ü Enhance donor cooperation and coordination
ü Better meet the fiduciary and developmental objectives of client countries and development agencies
ü Improve impact of reforms
Four Goals Three Objectives
PEFA Goals
&Objectives
Page 9Public Expenditure &
PEFAFinancial Accountability
2. What is PEFA’s goals and objectives?
What do we mean by “strategic, collaborative and integrated” approach?
l Involves a program of work over a medium-term time frame (3-5 years)
l Includes the whole budget cycle
l Takes into account institutional and governmental factors, or is part of a wider public sector reform strategy
l Includes both diagnostic work and the development of reform programs
l Involves a program of work over a medium-term time frame (3-5 years)
l Includes the whole budget cycle
l Takes into account institutional and governmental factors, or is part of a wider public sector reform strategy
l Includes both diagnostic work and the development of reform programs
Working with partners, the Program will support the delivery of this approach.
l Strengthens coordination at the country level between the development organizations
l Encourages country ownership and participation
l Strengthens coordination at the country level between the development organizations
l Encourages country ownership and participation
l Is linked to the CAS or equivalent
l Leads to a PRSC or other budget support operation
l Is linked to the CAS or equivalent
l Leads to a PRSC or other budget support operation
CollaborativeStrategic IntegratedCountry Focused
l Brings together different instruments and analytical tools
l Takes a wider governance and institutional perspective in the analysis and development of reforms
l Seeks to fulfill the requirements of the individual countries as well as those of external stakeholders
l Brings together different instruments and analytical tools
l Takes a wider governance and institutional perspective in the analysis and development of reforms
l Seeks to fulfill the requirements of the individual countries as well as those of external stakeholders
Page 10Public Expenditure &
PEFAFinancial Accountability
Why is a new approach needed?
What are the problems with
existing approaches?
• To increase the focus on results, especially poverty-reduction
• To recognize how programmatic lending and budgetary support programs may increase fiduciary risks of lending
• To respond to criticism of existing approaches by external agencies (e.g., European Parliament)
• Heavy transaction costs on recipients• Many diagnostic instruments & considerable overlap• Uncoordinated donor activities• Neither fiduciary nor developmental goals are fully met• Low impact of reforms in many countries
3. Why is a new approach needed?
Many donors are looking for a new approach to assist client countries to improve their public expenditure, procurement and financial accountability systems
Page 11Public Expenditure &
PEFAFinancial Accountability
Outline
Why is a new approach needed?Why is a new approach needed?
What are PEFA’s goals & objectives?What are PEFA’s goals & objectives?
DiscussionDiscussion
Introduction: What is PEFA?Introduction: What is PEFA?Introduction: What is PEFA?1
3
2
5
What are PEFA’s accomplishments & deliverables?What are PEFA’s accomplishments & deliverables?4
P
Page 12Public Expenditure &
PEFAFinancial Accountability
Examples of diagnostic tools are widespread … and many overlap
3. Why is a new approach needed? Public Expenditure instruments
Public Expenditure Reviews (PER)
Expenditure Analysis Budget Formulation Budget Execution
Fiscal ROSC
Public Expenditure Tracking Surveys PETS
Country Procurement Assm’t Reviews (CPAR)
HIPC Expenditure Tracking Assessments
European Commission (EC) Audits
Governance Surveys (e.g., IGRs, Anti-Corruption, Public Officials, Household Incidence, Poverty, etc.)
Country Financial Accountability Assessments (CFAA)
Illustra
tive
Monitoring &Reporting
Page 13Public Expenditure &
PEFAFinancial Accountability
3. Why is a new approach needed? Harmonization efforts
International harmonization efforts include setting standards and defining indicators
International Federation of Accountants:Public Sector Committee
SPA: Financial Management Working Group
International Organization of Supreme Audit Institutions
Multilateral Development Banks (MDB):Groups on Public Expenditure Management, FM and Procurement
Task Force on Donor Practices—Sub-Groups on Financial Management and Accountability, and on Procurement
Page 14Public Expenditure &
PEFAFinancial Accountability
Outline
Why is a new approach needed?Why is a new approach needed?
What are PEFA’s goals & objectives?What are PEFA’s goals & objectives?
DiscussionDiscussion
Introduction: What is PEFA?Introduction: What is PEFA?Introduction: What is PEFA?1
3
2
5
What are PEFA’s accomplishments & deliverables?What are PEFA’s accomplishments & deliverables?4P
Page 15Public Expenditure &
PEFAFinancial Accountability
Accomplishments:
• Secretariat established (Dec 2001)
• Secured a first-class Steering Committee and Advisory Group
• Launched a review to map diagnostic instruments and approaches
• Identified several countries to support early PEFA activities (Zambia, Niger, Vietnam, The Philippines, and Andhra Pradesh)
• Created a partnership with OECD-DAC to carry-out work on benchmarking and performance measurement.
Since December 2001, PEFA is established and moving forward
4. What are PEFA’s accomplishments? The present …
Page 16Public Expenditure &
PEFAFinancial Accountability
DecNovOctSepAugJulJunMayAprMar
Key future deliverables:
PEFA has an ambitious roll-out schedule during 2002.
4. What are PEFA’s deliverables? The future …
Deliverables =
2002
Pilot Activities Underway
Mapping/Review of existing diagnostic tools
Development of benchmarks and indicators
Dissemination of ‘Good Practice’
Develop promotional materials (e.g., web-site, leaflet)
~2 ~4 ~8
Page 17Public Expenditure &
PEFAFinancial Accountability
We estimate that at least 10-20 pilot activities will be carried out over the next three years, with approximately half in Africa.
4. What are PEFA’s deliverables? Candidates for pilot activities
Page 18Public Expenditure &
PEFAFinancial Accountability
What value can PEFA bring to work in focus countries?
4. What are PEFA’s deliverables
§ Monitoring, lesson learning and dissemination of good practice.
§ Integration of different diagnostic instruments within a coherent program of work.
§ Coordinating amongst donors and researching the diagnosis, recommendations and support for follow-up.
§ Broadening the analysis, including institutional and governance aspects.
§ Development of performance indicators from which progress can be monitored.
§ Enhancing quality assurance procedures amongst donors.
§ Actively bringing the parties together where that has not previously been the case.
§ Piloting of new and innovative approaches.
Page 19Public Expenditure &
PEFAFinancial Accountability
Outline
Why is a new approach needed?Why is a new approach needed?
What are PEFA’s goals & objectives?What are PEFA’s goals & objectives?
DiscussionDiscussion
Introduction: What is PEFA?Introduction: What is PEFA?Introduction: What is PEFA?1
3
2
5
What are PEFA’s accomplishments & deliverables?What are PEFA’s accomplishments & deliverables?4
P
Page 20Public Expenditure &
PEFAFinancial Accountability
PEFA must address several obstacles …
5. Discussion
Different Donor ‘Agendas’
Entrenched Bureaucracies
Donor Driven Approaches
Disincentives to Change
… in order to succeed