PUBLIC ACCOUNTANTS AND AUDITORS BOARD OCAM Conference ‘O Impacto das reformas da gestao das Financas Publicas no Desenvolvimento Economica Admire Ndurunduru Thursday, 13 September 2018

Protecting the Public Interest WHY PFM REFORMS? For Developing countries the Public Sector Makes up 60% of GDP Protecting the Public Interest

Protecting the Public Interest WHY PFM REFORMS? …cont. Illicit Financial Flows from the Continent - $50 Billion annually Protecting the Public Interest

Protecting the Public Interest WHY PFM REFORMS?....cont. AU Vision 2063 Winning the fight against corruption Protecting the Public Interest

WHY PFM REFORMS? …cont. Attracting Investment Protecting the Public Interest

Protecting the Public Interest WHY PFM REFORMS? …cont. Create an enabling environment for private enterprise Protecting the Public Interest

1. Strong, capable and effective public institutions WHY PFM REFORMS? Effective Policy Making, Implementation & Evaluation Regulatory Governance Justice Reform Rule of Law Voice and Accountability VA Public Financial Management SA Control of Corruption PFM Reforms Social Accountability Effective Regulatory Regime Effective Public Resource Management Procurement & Fiduciary Governance in Service Delivery Sectors - PFM encompasses the mobilization of government revenue; the allocation of that revenue to various activities; expenditure; and accounting for the two. - PFM Reforms are one of the key foundations for economic development. - PFM Reforms support governments’ efforts to deliver the three main fiscal and budgetary outcomes which are (1) aggregate fiscal discipline (2) strategic allocation of resources and (3) efficient service delivery High Quality Public Service Delivery Public Accountability & Transparency Public Management & Performance

Protecting the Public Interest WHY PFM REFORMS?....cont. Overview: Upstream PFM aspects (budget preparation, budget release) are stronger than downstream ones (accounting, audit, oversight). PEFA= Public Expenditure Financial Accountability PEFA is conducted by the World Bank. The objective of PEFA is identify areas of strengths and weaknesses in governments’ financial management systems. PEFA upstream dimensions relate to budget preparation such as strategic budgeting (multi-year forecasting, strategic planning, investment planning, debt planning); annual budget preparation; legislative analysis of the annual budget; and the structure of formal budget documents on the one hand. PEFA downstream dimensions relate to budget execution such as resource management (including cash inflow and outflow management, procurement, payroll); internal control, internal audit and monitoring; accounting and reporting; external audit; and legislative analysis of audit reports on the other. Protecting the Public Interest

High Quality PFM requires (at least)… PEFA= Public Expenditure Financial Accountability PEFA is conducted by the World Bank. The objective of PEFA is identify areas of strengths and weaknesses in governments’ financial management systems. PEFA upstream dimensions relate to budget preparation such as strategic budgeting (multi-year forecasting, strategic planning, investment planning, debt planning); annual budget preparation; legislative analysis of the annual budget; and the structure of formal budget documents on the one hand. PEFA downstream dimensions relate to budget execution such as resource management (including cash inflow and outflow management, procurement, payroll); internal control, internal audit and monitoring; accounting and reporting; external audit; and legislative analysis of audit reports on the other. Protecting the Public Interest

Protecting the Public Interest WHY PFM REFORMS?....cont. PEFA= Public Expenditure Financial Accountability PEFA is conducted by the World Bank. The objective of PEFA is identify areas of strengths and weaknesses in governments’ financial management systems. PEFA upstream dimensions relate to budget preparation such as strategic budgeting (multi-year forecasting, strategic planning, investment planning, debt planning); annual budget preparation; legislative analysis of the annual budget; and the structure of formal budget documents on the one hand. PEFA downstream dimensions relate to budget execution such as resource management (including cash inflow and outflow management, procurement, payroll); internal control, internal audit and monitoring; accounting and reporting; external audit; and legislative analysis of audit reports on the other. Protecting the Public Interest

BENEFITS OF PFM REFORMS Good Public Financial Management High quality public sector financial reporting. Effective, efficient public sector spending. More informed government decision making. Enhanced Transparency and Accountability Better quality public services Increased Trust in Government. Protecting the Public Interest

We know the benefits and challenges, but what are the solutions Protecting the Public Interest

Protecting the Public Interest Partnership Between the Accountancy Profession and Government Strengthening accountancy capacity to support PFM reform Protecting the Public Interest

Protecting the Public Interest Support Adoption and Implementation of IPSAS Adoption Implementation Guidance Education and training Raising Awareness Protecting the Public Interest

Protecting the Public Interest ADVOCACY Make public statements on public interest matters with accounting, auditing, or tax implications Promote adoption of a legal framework to strengthen PFM Promote and disseminate IPSAS Continuously engage with key stakeholders and public to communicate the benefits of IPSAS Protecting the Public Interest

Provide Technical Expertise Guide government on the development of PFM reform implementation roadmap Participate on implementation task forces or steering committees Advise on practical implementation of standards Support government with enforcement of legal framework to strengthen PFM Contribute to research and sharing PFM experiences from other countries Protecting the Public Interest

Strengthen Public Sector Accountancy Capacity Enhance /Offer public sector accountancy education, training, and professional qualification Curriculum reviews amongst accountancy education providers Partner with public service commission, Accountant General, Auditor General to provide career opportunities and ensure attraction and retention Identify and engage with government and development partners to build capacity needs Contribute to research and sharing PFM experiences from other countries Protecting the Public Interest

Partnering for Success The Profession Government Accountant General Auditor General Private Sector Development partners Regional organisations Protecting the Public Interest

PAAB IN THE ZIMBABWE PFM REFORMS The PAAB is implementing a project to Strengthen the Capacity of Public Sector Accountancy Professionals in Zimbabwe. The project is funded by DFID through IFAC. Protecting the Public Interest

Protecting the Public Interest Thank You QUESTIONS……..???? Protecting the Public Interest

Protecting the Public Interest Acknowledgements CIPFA Protecting the Public Interest