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TWG: Public Financial Management TWG Action Plan 165. The TWG reported that there were 254 actions that had been planned to be implemented, and satisfactory progress has been reported on 225 actions (89%); 29 actions were reported to be behind schedule. The TWG reported three reasons for the delay:
166. TWG proposed the following recommendations:
Joint Monitoring Indicators 167. MEF continues to implement the PFM reform program (complete stage 1/platform 1 and begin implementing the action plan for stage 2) and monitor impact through the agreed PFM Performance Management Framework/ Indicators (by the end of 2006).
Implementation status of the H-A-R Action Plan National Strategic Development Plan targets are achieved (Indicator # 1) 168. Within the framework of NSDP, sector ministries and agencies develop sector plans and prioritized results-based programs, and a sector MTEF (A.a.1). Public Financial Management Reform Program (PFMRP) is being implemented. In summary this is a fiscal affairs sector plan with incorporating a prioritized results-based program with a medium term combined sources budget. PFMRPs use a "Platform Approach" to prioritization and results based programming. 169. Based on prioritized programs of sector ministries/agencies, the three year rolling PIP is updated annually to feed into the national budget preparation process (A.a.2). The PFMRP has a five year rolling budget that incorporates capital investment activities (e.g. FMIS) and investment in capacity development and technical assistance. Three year PIP by sectors need to be provided in a format consistent with the new CoA and within the context of the MEFs MTEF Strategy. Enhanced coordination between CDC and MEF/-Budget Dept is needed. The MEF is considering recommendations related to the enhancement to the CDC's database, including multi-year and multi-dimensional classification functions. Development partners base their support on NSDP priorities and PIP (Indicator #3) 170. Development partners review their country assistance strategies and policies to align their assistance with NSDP priorities and sector development plans (B.1.a.1). PFM Development Partners contribute to development of joint assistance strategies and aligned assistance. The result is a Sector Wide Approach (SWAP) PFMRP. Pooled funds and coordinated country assistance strategies are key features (see also A.a.1 above). Review of assistance strategies complete. This was conducted within the context of the SWAP based Public Financial Management and Accountability Project (PFMAP). This information fed into a joint review of the World Bank's country assistance strategy. National public financial management and procurement systems that adhere to broadly accepted good practices (Indicator # 2) 171. MEF continues to implement the PFM reform program with targeted capacity development support from development partners to strengthen its PFM and procurement systems based on international best practices (B.1.a.2). Quarterly progress reports complete (see also A.a.1 above). Enhancements to quarterly report format and scope are progressing well. Increasing proportion of development assistance delivered through national institutions, systems and procedures. (Indicator #5) 172. Development partners and MEF establish mutually agreed framework to carry out reliable assessments of the PFM and procurement systems and make use of this assessment to increasingly rely on these Government systems as mutually agreed standards are attained. Mutually agreed framework agreed. Result is the SWAP PFMRP. Negotiations on International Procurement Agent near completion. A sector coordinated financial management and procurement supervision mission was conducted in mid-October. The SWAP framework has produced a number of reliable assessments (CPAR, IFAPER, Joint Missions etc). RGC Procurement manual for external assisted projects is being followed. Procurement reform is a key aspect of the PFMRP. The vision of this reform is to have one procurement manual/law that applies to external assisted and government funded procurements. Similar approaches are planned in other aspects of PFM including budgeting and accounting reform. Development partners release aid disbursements according to agreed schedules in annual or multi-year framework. (Indicator #7) 173. Each development partner provides to CDC/CRDB reliable indicative commitments of aid over a multi-year framework and disburses aid in a timely and predictable fashion according to agreed schedule. Multi-year, combined sources (trust fund donors, bilateral, multilateral and government) budget developed. MEF is working on mainstreaming the administration of the multi-year budget and procurement planning process. The number of parallel PIU/PMUs for day-to-day management and implementation of external funded projects and programs steadily reduced (Indicator #6) 174. PFMRP PIU is fully integrated. Government employees are managing the program within a SWAP and multi-year context. Capacity development issues are addressed in the formulation of Sector Plans and ODA supported programs/projects with development partners' financial support to achieve targeted development results (Indicator#4) 175. Initial capacity assessment complete as part of PFMRP, Multi-Donor Trust Fund (MDTF) and PFMAP assessments. Detailed capacity development strategy progressing. Merit Based Pay Incentive (MBPI) was implemented with encouraging results. Training and scholarship program is on track. Capacity enhancement of the MEF training institute (EFI) is progressing. Counterparts and capacity building duties are specified in ToRs and contracts for consulting services. Funding of around $12.5m (over 5 years) is provided for PFM training and capacity building provided through the SWAP-PFMAP, MDTF and Government Budget. This represents around 42% of overall project financing (including government contributions). The remaining amount is systems development and technical assistance. Increasing proportion of ODA is delivered through Sector/thematic Programs, and other Program Based Approaches (Indicator #9) 176. PBA=SWAP=PFMRP= Pooled funds from multiple donors (MDTF and PFMAP) with additional direct coordinated bilateral and multilateral assistance. Partnership principles for PFMRP donors and development partner coordination mechanisms working well. Enhancements to coordination arrangements were undertaken on an ongoing basis. Steadily decreasing number of separate, duplicative donor missions and diagnostic reviews and studies (indicator # 10) 177. High level Economic and Sector Work (ESW), Analytical and Advisory Assistance (AAA) and supervision missions developed within the project preparation and monitoring framework. Responsive and flexible systems are in place to adapt to changing circumstances. E.g. EITI/Oil revenue Management mission and forthcoming Financial Management and Procurement supervision mission coordinated with PFM development partners. 178. Development partners successfully implement their Action plans to meet the commitments of the Paris Declaration. Annual reports on PFM will be joint reports. These will feed into development partner country action plan reviews. 179. Strengthened application of EIAs and “strategic environmental assessment” approaches at the sector and national levels. MEF is considering establishing a working group to coordinate with relevant sectors. It is now awaiting consultation from lead agency. Possible areas for MEF contribution are: (i) specification of EIA requirements for new policy and new project proposals being brought forward by Ministers during the budget process (including mid-year reviews and ad-hoc spending submissions); (ii) provide comment on drafted policy and procedures, especially those with financial implications. MEF - Budget Department may consider providing training in understanding and interpreting EIAs. 180. RGC's sector ministries and development partners adopt harmonized approaches to tackle cross-cutting issues, such as gender equality. Cross-sectoral working groups have been established (e.g. Health, Education, MEF, DPs on Performance Indicator Review). EAP selection process is mindful of gender balance. MBPI monitoring includes gender balance review. Gender budgeting options are under review. RGC and development partners use jointly agreed results-oriented reporting and assessment frameworks that have a manageable number of indicators to monitor progress against key dimensions of national and sector development strategies (Indicator #11) 181. PFMRP Performance Indicator set has been agreed, reviewed and enhanced through a SWAP context. PRSO and PFMRP frameworks are mutually reinforcing. SOPs and NOGs have been developed within the PFMRP context. Compliance is monitored and supported. Development partners provide timely, transparent and comprehensive information on aid flows to the RGC (Indicator #12) 182. DIC database enhancement and automation are being prepared. CDC database enhancement is needed. Resource mobilization 183. The TWG reported that it has been able to mobilize resources for the implementation of the Action Plan. |