country financial accountability assessments paul bermingham head, financial management sector board...
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Country Financial Accountability Country Financial Accountability Assessments Assessments
Paul BerminghamPaul BerminghamHead, Financial Management Sector BoardHead, Financial Management Sector Board
June 22, 2001June 22, 2001
Overview
What is a CFAA?
Strategic Context – Where Does it Fit?
What is a CFAA used for?
Future Directions
What is a CFAA?
What is a CFAA?
Diagnostic tool designed to enhance the Bank’s knowledge of financial accountability arrangements in client countries
Supports both: the exercise of fiduciary responsibilities by helping to identify
risks to the use of Bank funds the Bank’s development objectives by facilitating the design and
implementation of capacity building programs
Together with the PER and CPAR, emerging as a key underpinning for country assistance strategies and programmatic lending
Scope and Content of CFAA
Public sector budgeting
Public sector accounting and financial reporting
Public sector internal control system and records management
Public sector auditing
Legislative scrutiny of the management of public finances
Private sector financial accounting and auditing practices
Corporate governance
Public access to information on public finances
Non-governmental and community-based organizations
Completed
Argentina
Armenia
Bangladesh
Bhutan
Bolivia
Brazil
Colombia
Croatia
Egypt
Ghana
Indonesia
Jamaica
Jordan
Kazakhstan
Korea
Latvia
Maldives
Moldova
Mozambique
Nigeria
Papua New Guinea
Poland
Slovakia
South Africa
Turkey
Uganda
Viet Nam
Yemen
Number of CFAAs Done
28
Algeria
Armenia
Benin
Bhutan
Bosnia-Herz
Chad
India
Mexico
OECS countries
Pakistan
Panama
Peru
Romania
Russia
Ukraine
15
Underway
Burkina Faso
Cameroon
Dominican Republic
Ethiopia
Laos
Madagascar
Malawi
Mozambique
Philippines
South Africa
Tanzania
UnderDiscussion
11
Strategic Context:
Where Does it Fit?
Strategic Context
Country development business model PRSP, CAS, diagnostic work, programmatic support, CDF
Greater realization of the importance of institutions
Shifting Bank resource transfer patternsAdjustment lending, debt relief, sector programs
Fiduciary assessments in CASs (MIC Paper, April 2001)
Fiduciary assessments as an underpinning for PRSCs(PRSC guidelines, May 2001)
Relationship to Bank product lines
Global products and partnerships
Standards
Bank activity
Global products and partnerships
Diagnostic ESW work
Standards
Assessment
Bank activity
Relationship to Bank product lines
Global products and partnerships
Diagnostic ESW work
CAS, lending operations, advice
Standards
Assessment
Response
Bank activity
Relationship to Bank product lines
Public Expenditure and ESW Products
Policy Preparation Execution Reporting Oversight
Budget
Public Expenditure and ESW Products
Policy Preparation Execution Reporting Oversight
PER
Budget
Public Expenditure and ESW Products
Policy Preparation Execution Reporting Oversight
PER
CPAR
Budget
Public Expenditure and ESW Products
Policy Preparation Execution Reporting Oversight
PER
CPAR
CFAA
Budget
Public Expenditure and ESW Products
Policy Preparation Execution Reporting Oversight
PER
CPAR
CFAA
Fiduciary Assessment
Budget
Sources of Information
CFAA
Procurement reviews
Public expenditure reviews
Institutional and governance reviews
CPIA ratings
Bank portfolio performance information
IMF Fiscal transparency reports
IMF Safeguards assessments
IMF “Red cover” reports
MDB and other donor diagnostic products
SAI reports
Other official oversight agencies in client countries
International organizations
World Bank Other
What is a CFAA used for?
Uses of a CFAA
Facilitate dialogue with borrowers and partners on financial accountability matters
An input to the design of the Bank’s overall country assistance strategy (CAS)
Underpins Bank advice and lending to strengthen country financial accountability
Reference point in assessing financial management arrangements in individual projects
Support fiduciary risk management strategy (e.g., staffing, mitigation measures)
CFAA – Future Directions
CFAA - Future Directions
Increased country coverage
Better integration with other diagnostic tools, especially PERs and CPARs
Enhanced linkage to borrower development strategies and Bank programs
Increasingly carried out with development partnersEmerging as a priority area for collaboration in financial management harmonization process
Enhanced quality
Likely to focus more on public sector, as private sector issues addressed by ROSC assessments of accounting and auditing