PUBLIC FINANCIAL MANAGEMENT REFORMS in UGANDA

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PUBLIC FINANCIAL MANAGEMENT REFORMS in UGANDA

• A PRSC PERSPECTIVE
• MARIUS KOEN
•  
• Financial Management Unit
• AFRICA OPERATIONAL QUALITY KNOWLEDGE SECTOR

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SUMMARY OF PRESENTATION

• Nature of the PRSC
• Structure of the PRSC Program
• Main Actors in the PFM-sector
• Historical perspective of PFM Analytics
  supporting reforms
• Salient successes achievements during the PRSC
  Program
• Developments influencing the direction of the
  PFM-reform program
• Challenges for the sector

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NATURE OF THE PRSC in UGANDA

• A Grant/Credit of 150 mil. - Poverty Red.
  Support Opertn.
• Annual, but based on a long-term perspective for
  poverty reduction
• Support UG Poverty Eradication Action Plan (PEAP)
• Emphasize service delivery rural development
  (results-oriented, focused on outcomes benefiting
  the poor)
• Partnership-oriented involving coordination of
  DPs
• ADJUSTMENT OPERATION
• SUPPORTED BY MOST DEV. PARTNERS

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STRUCTURE OF THE PRSC PROGRAM

• PILLAR 1 Framework for Econ. Growth
  Structural Transformation
• PILLAR 2 Good Governance Security
• PILLAR 3 Enhance Ability of Poor to Raise their
  Incomes
• PILLAR 4 Increasing Quality of Life of the Poor

• OTHER FOCUS AREAS
• Infant Maternal Mortality Rates
• Gender Issues
• Results Orientation (ME)

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MAIN ACTORS IN THE PFM-SECTOR

• COORDINATED BY PEMCOM
• Ministry of Fin, Planning Economic Dev.
  (MoFPED)
• Accountant Generals Office
• Treasury/Accounts Dept.
• Internal Audit
• Treasury Inspectorate
• Office of the Auditor General
• Min.of Local Govt. Inspectorate Deptartment
  
• Ministry of Public Service
• Development Partners

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HISTORICAL PERSPECTIVE OF PFM ANALYITCS
SUPPORTING REFORMS

• CFAA CPAR issued January 2001
• HIPC Tracking Assessment in Fall 2001
• HIPC Update in 2002
• PEAP revision October 2003 (Govt. driven)

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SALIENT SUCCESSES ACHIEVEMENTS DURING THE PRSC
PROGRAM

• Strengthened Legal Regulatory Framework
• Info on Actual Spending on Frontline Basic
  Services using Expenditure Tracking Surveys
• Established a PFM Sector Committee - PEMCOM
• Procured IFMS
• Quality Timely Audited Accounts (Central Govt.)
• Improved Chart of Accounts (MDAs LAs) IPSAS
• Improved CCS (AOs fully responsible under PFAA)
• Capacity Building (EFMP II, LGDP FAP)
• Training programs
• Employment of graduates (support team)

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SALIENT SUCCESSES ACHIEVEMENTS DURING THE PRSC
PROGRAM (contd)

• Improved Fin Reporting and Auditing at LAs
• Strengthened Professionalised Internal Audit
• Strengthened Capacity in OAG
• Audit techniques
• Training programs
• VFM audits
• IFMS preparation
• Agreed Audit Strategy for over 900 (sub-counties)
• Strengthened Capacity in PAC
• Strengthen Accountability Issuing Treasury
  Memos
• Regularized Unreconciled Accounts with BOU

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DEVELOPMENTS INFLUENCING THE DIRECTION OF THE
PFM-REFORMS

• Govt. PEAP Update of Oct 2003 to be finalised in
  2004
• Updated CFAA, CPAR in January 2004
• HIPC Tracking Assessment Update in Feb 2004
• DFID Fiduciary Risk Assessment in Feb/March 2004
• CIFA will take from CFAA,CPAR, PER, HIPC. One
  consolidated PFM Action Plan feeding into the
  Joint CAS as well as PRSC/PRBS by DPs

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CHALLENGES FOR THE SECTOR

• Enforcement of PFAA Regulations
• Roll-out of IFMS
• Re-organisation of Acc. Genls Office
• Decentralisation of Internal Audit Function
• Sustain Capacity Building Efforts
• Resolve Independence Issue of Aud. Genl.
• Implement Strategy for Audit of Local Govt.
• PAC catch up with backlog and Treasury Memoranda
• Improve Payroll Pension Systems
• Development of Performance Indicators (ME)