Fiduciary Risk Assessment Public Financial Management Performance Measurement Framework PEFA Public Financial Management Performance Measurement Framework and its Precursors ICGFM May 08 2006 David Joseph Ormandy MA CGA CIM FCSI Advisor to the Financial Secretary Government of Montserrat
These incentives reduce the focus on individual aid projects (“enclave” projects) to reduce poverty which were in many cases unsuccessful as aid is fungible. And to increase the emphasis on poverty reduction by promoting sound public administration and efficient delivery of public services
The institutional structure is the framework of rules, customs and incentives which influence how expenditures are made and how people behave. A good public sector will have well defined rules for authority for delegation.
All systems will operate on the basis of informal and formal rules which determine to what extent “official” policy is acted on or ignored.
Because the sponsors of the Performance Measurement Framework, who are the PEFA secretariat, include many development agencies if your country is dependant of external aid you may well be faced with a PFM evaluation in the future.