Afar Region Awareness Workshop February 2006

2 Structure of Presentation Background and Objectives of EMCP Components and Program Management of EMCP Status of Reforms Evolutionary Approach to Reforms Benefits of Reform Reform Activities in Afar Key Achievements Benefits of Single Pool/Single Treasury Risks facing Reform Support required from senior officials Question and Answers

3 Background Expenditure Management and Control Sub- Program is one of the five sub programs of the Civil Service Reform

4 Objectives of EMCP To strength the capacity of the public financial management system to manage public sector financial transactions To improve the capacity of public sector managers to use information to permit better planning, management and control To develop on the platform that budget allocations are driven by policy

5 Components of EMCP Legal Framework Budget Reform Accounts Reform Expenditure Planning Internal Audit External Audit Cash Management Financial Management Information System Human Resource Development

6 Program Management National Steering Committee EMCP Coordination Office Regional Steering Committee Regional Reform team

7 RegionBudget ReformAccounts ReformExpenditure Planning Federal SNNPR Tigray Amhara Oromia Ben/Gumz Harari Afar Somali Gambella Adis Ababa Dire Dawa Status of Reforms

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9 Benefits of Reform Legal framework established Accounts backlog reduced to one year Budget approved and notified on time Budget & Accounts manual/module developed and translated (Amharic, Oromiffa, Somali & Tigrigna) Financial Information System developed and used (BIS/BDA) 55,691 staff trained

10 Benefits of Reform…cont’d Standard chart of accounts used Budget structure standardized Improved cash and management control Development partners confidence increased o Direct budget support reporting o Debt write off o Ramping up financial support

11 Improve information Increase transparency Reduce costs Provide more timely information Smooth accounts work flow Reports flow easily from accounts records All accounts information kept at unit Modernize public sector financial systems Meet international standards Benefits of Reform…cont’d

12 Key Achievements inAfar Budget Reform Cost center budgeting Development of new budget classification New chart of accounts used for FY 98 budget preparation Budget calendar

13 Key Achievements in Afar …Cont’d Budget Reform Budget manual and module developed Printing & distribution of forms FY 98 budget approved and notified Budget processed using BIS Over ??? budget experts trained.

14 Key Achievements in Afar …Cont’d Budget Execution Budget execution manual and module designed and developed New budget classification implemented New chart of accounts implemented Reports generated by cost center Over 360 accounts staff trained.

15 Reform Activities Planned for Afar in FY 1999 Support the Budget Reform Introduced in FY 1998:  Provide refresher training on budget preparation  Support the budget preparation process  Support BIS

16 Reform Activities Planned for Afar in FY Cont’d.  Introduce Accounts Reform:  Design procedure manuals  Design training modules  Translate and print manuals and modules  Deliver training – TOT and region wide  Install accounts software –BDA 3 (B)  Provide post implementation support to the accounts reform

17 Benefits of Single Pool The work is organized to match zone/wereda capacity. Cost savings are huge – manpower, forms, office and storage space, infrastructure Concentrates expertise and contributes to in-house training

18 Benefits of Single Pool …cont’d Training is directed at one pool only Implementation support is directed at one pool only Reporting is more timely

19 Benefits of Single Pool …cont’d Provides best cash management Promotes sustainability Public Bodies focus on their objectives and mission. Risk of failure of new system is minimized

20 Benefits of Single Treasury Single Treasury means one bank account in wereda/zone for Treasury funds - May also include funds received from donors/lenders Improves cash management Reduces cost Cost of idle funds Transfer charges Charges for bank statements Reduced travel to banks

21 Areas of Support Required Cabinet Decide to implement single pool at wereda and zone Decide to recruit qualified (diploma/degree) accountants to support accounts reform

22 Areas of Support Required …cont’d BOFED:  Assign a qualified and competent accounts reform team of 5 accountants  Present decision paper on single pool and staff recruitment to cabinet  Implement Cabinet decision on single pool  Assess staff capacity at BOFED, region, zone and weredas  Recruit qualified staff to fill capacity gaps

23 Areas of Support Required …cont’d All Office Heads at RSB, ZOFED and OFED:  Ensure timely closure of FY 1998 accounts  Minimize staff reassignments  Assign only qualified accountants to key positions in the Accounts Department  Send only qualified accountants to attend accounts reform training The Zone and Wereda Administrators should monitor and support the above initiatives

24 Risks to Timely Implementation of Accounts Reform Delays in:  Cabinet decision to implement single pool at wereda and zone  Actual physical implementation of single pool at wereda and zone  Recruitment of qualified (degree/diploma) accountants  Preparations in design of manuals and modules, translation, printing of new forms, delivery of training