1. Dire Dawa Administrative Council Reform Awareness Workshop November 2005

2. 1 Structure of Presentation Awareness on the Reforms On going Reform activities in Dire Dawa Identify specific areas of support from Public Body Heads Question and Answers

3. 2 Background Expenditure Management and Control Sub-Program is one of the five sub programs of the Civil Service Reform

4. 3 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. 4 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. 5 Program Management National Steering Committee EMCP Coordination Office Regional Steering Committee Regional Reform team

7. 6 Reasons for Financial Reform The system was designed for a unified rather than a fiscally devolved system The accounts system provided only rudimentary control (cash only) The way the budget was classified & structured did not facilitate the management & planning of public finances

8. 7 Reasons for Financial Reform …continued 6 years backlog in finalizing accounts Modernization of public sector financial system Conditionality of Development Partners Requirements of new aid modalities No IT system leading to inefficiency

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11. 10 RegionBudget ReformAccounts ReformExpenditure Planning Federal SNNPR Tigray Amhara Oromia Ben/Gumz Harari Afar Somali Gambella Adis Ababa Dire Dawa Status of the reform as of FY 1998

12. 11 Benefits of the 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)  52500 staff trained  Staff empowered

13. 12 Benefits of the Reform…cont’d Standard Chart of Accounts used Budget structure standardized Cash and management control Comprehensive report ing Implement modern accounting systems Development partners confidence increased Direct budget support Debt write off Ramping up financial support

14. 13 On Going EMCP projects at Dire Dawa Budget Reform New Chart of Accounts New Budget Structure Forms Cost Center Budgeting BIS Budget Calendar

15. 14 On Going EMCP…cont’d Accounts Reform Double Entry Booking Modified Cash Basis of Accounting New chart of accounts Commitment accounting New forms, registers, ledgers and reports Comprehensive reporting BDA

16. 15 Main Achievements Budget Reform Budget manual and module developed Development of new budget classification Cost center budgeting New chart of accounts used for FY 98 budget preparation Printing & distribution of forms FY 98 budget approved and notified Budget processed using BIS 150 Budget experts trained

17. 16 Main Achievements…cont’d Account Reform Accounts manual and module New chart of account used for FY 98 Recruitment of additional staff Printing & distribution of forms FY 98 accounts processed using new accounts system 207 accountants trained

18. 17 Performance of Public Bodies  Rural dev. Cor. Bureau  Transport Agency  TVT Collage  D.D Health Center  Sabiyan Health Center  Kebele 06  Kebele 07  Health & Social Affairs  City Manager Office  Police Commission  Sport & Youth Comm.  DD secondary School Outstanding Medium

19. 18 Performance of Public Bodies …cont’d  Capacity Building  BoFED  Supreme Court  Audit Office  Abattor Service  Sabian Secondary School  Kebele 04 School  Dile Chora Hospital  Melka Jebdu Health Centre  Kebele 4 Health Centre  Biyo Awel Health Centre  Kebele 01  Kebele 02  Kebele 03  Kebele 04  Kebele 05  Kebele 08  Kebele 09 Poor Performance

20. 19 Area of Support required Public Body Heads Implement organizational structure Match Capacity to Job Conduct regular management meeting Follow up monthly reporting Finance Heads Verify report Manage and control Cash and Bank daily Ensure account records are up to date

21. 20 Area of Support required …cont’d BOFED Management of reform Provide technical support Verify reports Consolidate Region accounts