1. PUBLIC FINANCIAL MANAGEMENT REFORMS in UGANDA
A PRSC PERSPECTIVE
MARIUS KOEN
Financial Management Unit
AFRICA: OPERATIONAL QUALITY & KNOWLEDGE SECTOR
March 1-2, 2004
Budget Management & Financial Accountability Course

2. SUMMARY OF PRESENTATION
Nature of the PRSC
Structure of the PRSC Program
Main Actors in the PFM-sector
Historical perspective of PFM Analytics supporting reforms
Salient successes & achievements during the PRSC Program
Developments influencing the direction of the PFM-reform program
Challenges for the sector
March 1-2, 2004
Budget Management & Financial Accountability Course

3. NATURE OF THE PRSC in UGANDA
A Grant/Credit of $150 mil. - Poverty Red. Support Opertn.
Annual, but based on a long-term perspective for poverty reduction
Support UG Poverty Eradication Action Plan (PEAP)
Emphasize service delivery & rural development (results-oriented, focused on outcomes benefiting the poor)
Partnership-oriented involving coordination of DPs
ADJUSTMENT OPERATION
SUPPORTED BY MOST DEV. PARTNERS
March 1-2, 2004
Budget Management & Financial Accountability Course

4. STRUCTURE OF THE PRSC PROGRAM
PILLAR 1: Framework for Econ. Growth & Structural Transformation PILLAR 2: Good Governance & Security PILLAR 3: Enhance Ability of Poor to Raise their Incomes PILLAR 4: Increasing Quality of Life of the Poor
OTHER FOCUS AREAS
Infant & Maternal Mortality Rates
Gender Issues
Results Orientation (M&E)
March 1-2, 2004
Budget Management & Financial Accountability Course

5. MAIN ACTORS IN THE PFM-SECTOR
COORDINATED BY PEMCOM
Ministry of Fin, Planning & Economic Dev. (MoFPED)
Accountant General’s Office
Treasury/Accounts Dept.
Internal Audit
Treasury Inspectorate
Office of the Auditor General
Min.of Local Govt. Inspectorate Deptartment
Ministry of Public Service
Development Partners
March 1-2, 2004
Budget Management & Financial Accountability Course

6. HISTORICAL PERSPECTIVE OF PFM ANALYITCS SUPPORTING REFORMS
CFAA & CPAR issued January 2001
HIPC Tracking Assessment in Fall 2001
HIPC Update in 2002
PEAP revision October 2003 (Govt. driven)
March 1-2, 2004
Budget Management & Financial Accountability Course

7. SALIENT SUCCESSES & ACHIEVEMENTS DURING THE PRSC PROGRAM
Strengthened Legal & Regulatory Framework
Info on Actual Spending on Frontline Basic Services using Expenditure Tracking Surveys
Established a PFM Sector Committee - PEMCOM
Procured IFMS
Quality & Timely Audited Accounts (Central Govt.)
Improved Chart of Accounts (MDAs & LAs) & IPSAS
Improved CCS (AOs fully responsible under PFAA)
Capacity Building (EFMP II, LGDP & FAP)
Training programs
Employment of graduates (support team)
March 1-2, 2004
Budget Management & Financial Accountability Course

8. SALIENT SUCCESSES & ACHIEVEMENTS DURING THE PRSC PROGRAM (cont’d)
Improved Fin Reporting and Auditing at LA’s
Strengthened & Professionalised Internal Audit
Strengthened Capacity in OAG
Audit techniques
Training programs
VFM audits
IFMS preparation
Agreed Audit Strategy for over 900 (sub-counties)
Strengthened Capacity in PAC
Strengthen Accountability: Issuing Treasury Memo’s
Regularized Unreconciled Accounts with BOU
March 1-2, 2004
Budget Management & Financial Accountability Course

9. DEVELOPMENTS INFLUENCING THE DIRECTION OF THE PFM-REFORMS
Govt. PEAP Update of Oct 2003 to be finalised in 2004
Updated CFAA, & CPAR in January 2004
HIPC Tracking Assessment Update in Feb 2004
DFID Fiduciary Risk Assessment in Feb/March 2004
CIFA will take from CFAA,CPAR, PER, & HIPC. One consolidated PFM Action Plan feeding into the Joint CAS as well as PRSC/PRBS by DPs
March 1-2, 2004
Budget Management & Financial Accountability Course

10. CHALLENGES FOR THE SECTOR
Enforcement of PFAA & Regulations
Roll-out of IFMS
Re-organisation of Acc. Genl’s Office
Decentralisation of Internal Audit Function
Sustain Capacity Building Efforts
Resolve Independence Issue of Aud. Genl.
Implement Strategy for Audit of Local Govt.
PAC catch up with backlog and Treasury Memoranda
Improve Payroll & Pension Systems
Development of Performance Indicators (M&E)
March 1-2, 2004
Budget Management & Financial Accountability Course