Measuring and Monitoring Treasury Performance PEMPAL TCOP Plenary Meeting Measuring and Monitoring Treasury Performance Albania,Bulgaria,Kosova,Turkey Tirana (Albania), May 22nd, 2018

Overview of Country Practices

Existing approaches to monitoring treasury performance (participants, processes, tools, etc) Kosovo: PFM RS monitoring PI, PEFA, … Albania: PFM RS monitoring PI, PEFA, annual PFIC monitoring report (transparency), internal management tools, … Turkey: legislation, integrated into management systems, clear accountability framework, including Court of Accounts, transparency, annual accountability report, debt and risk management report, cash realization, …

Challenges in measuring and monitoring treasury performance Kosovo: legislation, capacity building, systems, defining KPIs and balanced scorecards, staff retention… Albania: institutional capacity development, legislation, lack of appreciations of roles and responsibilities, modernize IT systems (data-warehouse), continuity of the staff … Turkey: substance over forms, no clear linkage between employee and institutional performance, lack integration of various elements of management systems ( performance, risks, etc)… To all: lack of capacity to use KPIs for decision making (parliament, governing)

PEFA Indicators as Treasury KPIs (example of PI-22 Expenditure Arrears)

Are we using the same language when speaking of “expenditure arrears” Are we using the same language when speaking of “expenditure arrears”? (examples of definitions used) Kosovo: past due date>30 from BI, EO submit the request for payment to Treasury > 60 days from the acceptance of G&S Albania: past due date>30 days (BI)/>60 days (treasury) from the invoice date/acceptance of goods and services (law definition) … Turkey: every payable that extends beyond the YE (time that payment request has been submitted by BI)…

Challenges in using PI-22 for measuring treasury performance Kosovo: lack of accrual accounting, lack integration of procurement and FM information systems, lack of political commitment to revise the procurement law … Albania: discipline of budget users in using commitment controls, unbudgeted invoices (old/roads contracts), … Turkey: lack of sufficient transparency with respect to commitments, and arrears in AFS…

PI-22 Expenditure Arrears – Self-Assessment 22.1. Stock of Expenditure Arrears 22.2. Expenditure Arrears Monitoring Albania B A Kosovo B? Turkey A (<2%)

PI-22 scoring methodology Dimension 22.1: The stock of arrears is no > 2% (A)/ > 6% (B) of total expenditure in at least 2 of the last 3 years Dimension 22.2: Data on the stock, age, and composition of expenditure arrears is generated quarterly within 4 weeks of the end of each quarter (A score)

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