Review of a Country’s Public Financial Management System (‘macro’ assessment)

Why Development objective Fiduciary objective Information on risk environment

Key principles Transparent and open review of existing assessments Provides context for future budget support or gov’t managed basket funding Reliance on existing studies. If no assessment, advocate for one Does not provide ‘pass’ or ‘fail’

What macro assesses…  National budget development and execution  Compliance with public sector accounting standards and internal control mechanisms  Control of cash and assets  Audit and oversight  Systems and staff

When At CCA phase—identify capacity gaps Review when other assessments become available Change in environment

How to conduct the assessment Review existing assessments: – Donors (DFID, CIDA, EC) – CFAA (World Bank) – Public Expenditure Review (World Bank) – Institutional and Governance Review (World Bank) – Diagnostic Study of Accounting and Auditing (ADB) Prepare TOR (sample provided), share with gov’t, share costs among UNCT

Who should assess Consultant! Consultant’s profile – Should have examined PFM – Should be able to complete work within 4 weeks

Content of report Up to 4 pages excluding annexes Summary of findings in the key areas (budget, internal controls, control of cash, audit and oversight, systems and staff) Summary of risks relating to transfer modalities Assessment of Supreme Audit Institution Opportunities for capacity development (if any) Completed checklist

Sharing results with government and partners Review report and conclusions Results summarized in CCA