Ronsolt the pefa framework a tool for monitoring government performance19166 9


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Public Expenditure and Financial Accountability - PEFA standard and how this helps governments monitor performance

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  • The workflow of about 15 assessments developed in six months and has remained constant. Whilst 2 donors (WB and EC) have dominated the leading and funding assessments, at least 20 others have participated in various roles. Governments have initiated self-assessments in a number of cases, though still limited.
  • Subnational representation: Total of 18 subnational assessments - 9 substantially completed, 3 commenced, and 6 planned. Repeat assessments: Total of 12 repeat assessments, 6 substantially completed, 0 commenced, and 6 planned.
  • Ronsolt the pefa framework a tool for monitoring government performance19166 9

    1. 1. The PEFA Framework – a tool for monitoring government performance ICGFM – New Developments in Governmental Financial Management Miami, May 19-22, 2008 Frans Ronsholt, Head of PEFA Secretariat
    2. 2. <ul><li>What is the PEFA Framework </li></ul><ul><li>Global Roll-Out </li></ul><ul><li>A country case </li></ul><ul><li>PEFA support to users </li></ul>Content
    3. 3. What is the PEFA program? <ul><li>PEFA Public Expenditure & Financial Accountability </li></ul><ul><li>Objective: Results orientation in development of PFM systems & harmonization of PFM analytical work </li></ul><ul><li>Established: in 2001 by seven agencies. Today working in tandem with the 25 members of OECD-DAC Joint Venture on PFM </li></ul><ul><li>Initial target: creation of a common information pool on PFM performance at country level </li></ul><ul><li>Tool: the PFM Performance Measurement Framework, developed by PEFA and launched in June 2005 </li></ul>
    4. 4. PFM Performance Framework (or PEFA) Framework <ul><li>PFM Performance Indicators: </li></ul><ul><ul><li>31 high-level indicators, covering the entire budget management cycle and all PFM subjects. </li></ul></ul><ul><li>PFM Performance Report: </li></ul><ul><ul><li>the context; the evidence; the analytical summary </li></ul></ul><ul><li>Indicator scoring on a 4-point ordinal scale, based on: </li></ul><ul><ul><li>Objective and transparent criteria </li></ul></ul><ul><ul><li>Evidence (not perception) </li></ul></ul><ul><ul><li>Internationally recognized good PFM practice </li></ul></ul><ul><li>Assessing systems performance </li></ul><ul><ul><li>not policy; not causes in detail </li></ul></ul>
    5. 5. What can countries use the PEFA Framework for? <ul><li>Inform PFM reform formulation, priorities </li></ul><ul><li>Monitor results of reform efforts </li></ul><ul><li>Harmonize information needs for external agencies around a common assessment tool </li></ul><ul><li>Compare to and learn from peers </li></ul>
    6. 6. Implementation modality <ul><li>Country focus and decision </li></ul><ul><ul><li>Application of the PEFA Framework is entirely decentralized to the country level (if, when, how to use Framework) </li></ul></ul><ul><li>Inclusiveness </li></ul><ul><ul><li>All stakeholders can be involved and any agency can in principle undertake any role in its implementation; it does not ‘belong’ to any organization </li></ul></ul><ul><li>Supported by a neutral body - the PEFA Secretariat </li></ul><ul><ul><li>offers support to any user of the Framework without representing a particular interest </li></ul></ul><ul><ul><li>does not undertake or finance assessments </li></ul></ul><ul><ul><li>support is free of charge </li></ul></ul>
    7. 7. PEFA Assessment: roll-out trend
    8. 8. Geographical distribution
    9. 9. PEFA Framework adoption <ul><li>Very good progress – globally </li></ul><ul><ul><li>Completed in 72 countries, ongoing in a further 10 </li></ul></ul><ul><li>Increasingly used for Sub-National gov’t </li></ul><ul><ul><li>India, Pakistan, Colombia, Tanzania, Uganda, Ethiopia </li></ul></ul><ul><ul><li>Guidelines for SN application issued March 2008 </li></ul></ul><ul><li>High country coverage in many regions </li></ul><ul><ul><li>Africa and Caribbean > 80% of countries </li></ul></ul><ul><ul><li>Latin America, Eastern Europe, Asia, Pacific 40-60% </li></ul></ul>
    10. 10. Country case - Mozambique <ul><li>PEFA incorporated in PFM reform monitoring system </li></ul><ul><ul><li>baseline 2005, repeat assessment 2007, planned follow-up 2010 </li></ul></ul><ul><li>Important performance improvements 2005-2007 in budget execution </li></ul><ul><ul><li>revenue administration, cash management, internal controls </li></ul></ul><ul><li>Improvements resulted from: </li></ul><ul><ul><li>Reforms already well under way in 2005 (e.g. IFMIS/SISTAFE and revenue administration) </li></ul></ul><ul><ul><li>Small managerial/admin changes (including quick-wins identified on the basis of 2005 assessment) </li></ul></ul><ul><ul><li>New reform initiatives in pay-roll control (identified from the 2005 assessment as an important neglected area of reform) </li></ul></ul>
    11. 11. Country case - Norway <ul><li>Findings of Norad-managed self-assessment presented to OECD-DAC in December 2007 </li></ul><ul><li>The assessment showed low scores for seven areas of PFM system performance </li></ul><ul><li>Ministry of Finance reaction: </li></ul><ul><ul><li>Weaknesses in procurement practices and follow-up to external audit findings need to be addressed. </li></ul></ul><ul><ul><li>Three areas of low scoring not considered priority at present (Multi-year program/sector budgeting, Limited extent of internal audit, no consolidated overview of risks from autonomous agencies and public corporations) </li></ul></ul><ul><ul><li>Two indicators scored low but are municipal responsibilities; central government will not get involved. </li></ul></ul>
    12. 12. <ul><li>Services provided by the PEFA Secretariat </li></ul>
    13. 13. Support to assessment managers <ul><li>Support tools on the website ( ): </li></ul><ul><li>List of completed, ongoing and planned assessments – updated periodically </li></ul><ul><li>Links to completed reports, when public </li></ul><ul><li>Support on request: </li></ul><ul><li>Advice / Video-conference briefings to country teams on assessment planning </li></ul><ul><li>List of consultants with PEFA experience </li></ul><ul><li>Review of terms of reference </li></ul><ul><li>Quality reviews of draft assessment reports </li></ul>
    14. 14. Support to Assessors <ul><li>Support tools on the website: </li></ul><ul><li>The Framework ( English, French, Spanish, Portuguese, Russian, Arabic ) </li></ul><ul><li>Calculation spreadsheets for some indicators </li></ul><ul><li>Guidance on information / evidence for assessment </li></ul><ul><li>Clarifications and additional guidance on indicators </li></ul><ul><li>Training materials </li></ul><ul><li>Support on request: </li></ul><ul><li>Indicator interpretation and other advice to assessors during implementation </li></ul>
    15. 15. Stay in touch with PEFA <ul><li>Visit our website: </li></ul><ul><li>Send us questions: [email_address] </li></ul><ul><li>Get on our news distribution list: Send us your name and email address </li></ul>
    16. 16. Thank you for your Attention