REPUBLIC OF MO Z AMBIQUE Mozambique

Republic of Mozambique Population - 19 milion Civil Servants – 160 Thousand Public Internal Auditors - 450

Population - 19 milion

Civil Servants – 160 Thousand

Public Internal Auditors - 450

PUBLIC FINANCIAL MANAGEMENT SISTAFE LAW 9/2002 – 12 February Established 5 Public Financial Management Subsystems LAW 23/04 - 20 August Approved the Public Financial Management Rule UTRAFE –Coordenator Institution of the PFM Reforms

PUBLIC FINANCIAL MANAGEMENT SISTAFE Treasury Subsystem Budget Subsystem State Patrimony Subsystem Public Accountability Subsystem Internal Audit Subsystem

INTERNAL AUDIT Domains : Budgetary Economic Financial Patrimony

Budgetary

Economic

Financial

Patrimony

Internal Audit Subsystem - Composition General Inspection of Finance and General Inspection of State Administration Sectorial General Inspections Central, Regional and Provincial Audit Institutions

General Inspection of Finance and General Inspection of State Administration

Sectorial General Inspections

Central, Regional and Provincial Audit Institutions

Acting Operational level Sectorial level Stratégic level

Operational level

Sectorial level

Stratégic level

Coordenation Coordenated Acting between institutions of control regard planning, realization and evaluation of the activities. Rational and coherent working Suficiency – eliminate uncovered areas e resulted controls Complementarity – respect the level and the atribuited area of each institution and accordance of borders, criteria and methodologies. Importance – take in account risk evaluation and materiality of the situations.

Coordenated Acting between institutions of control regard planning, realization and evaluation of the activities.

Rational and coherent working

Suficiency – eliminate uncovered areas e resulted controls

Complementarity – respect the level and the atribuited area of each institution and accordance of borders, criteria and methodologies.

Importance – take in account risk evaluation and materiality of the situations.

Frame GOV. (MPF) IAS COORDENATOR COUNCIL Strategic Level IAE IGF Financial control of Public revenue and expenses Sectorial Level General Inspections of all Ministries and Regional Inspections Control the activities of the 1st level institutions Operational Level Internal Auditing Internal Controls Procedures

General Obligations The Institutions Shall: Give all requested information to the Coordenator Council Respect the recomendations Support the Coordenator Council

The Institutions Shall:

Give all requested information to the Coordenator Council

Respect the recomendations

Support the Coordenator Council

Special Obligations Strategic and sectorial controls shall: Prepare activity plans and reports according to the CC recomendations Send to the C.C. Annual Activity Reports and plans

Strategic and sectorial controls shall:

Prepare activity plans and reports according to the CC recomendations

Send to the C.C. Annual Activity Reports and plans

Administrative Court Attend the CC sessions, preparation of the plan and annual reports as observer

Attend the CC sessions, preparation of the plan and annual reports as observer

Achievements since the creation of the Subsystem Elaboration of the “ White Book” for the IASubsystem (Diagnosis) Elaboration of IAS`s Strategic Plan for 2005-2009 CC bylaws

Elaboration of the “ White Book” for the IASubsystem (Diagnosis)

Elaboration of IAS`s Strategic Plan for 2005-2009

CC bylaws

Achievements since the creation of the Subsystem Perfomance Audit in Pharmaceutical Sector, Streets and Water- Justice Sector is ongoing Integrated Audit Conjoined Audits: Procurement Process Financial and administrative evaluation of 39 districts Auditing 50% of the districts (2008) Internal Auditors Training

Perfomance Audit in Pharmaceutical Sector, Streets and Water- Justice Sector is ongoing

Integrated Audit

Conjoined Audits:

Procurement Process

Financial and administrative evaluation of 39 districts

Auditing 50% of the districts (2008)

Internal Auditors Training

Constraints Lack of Public Auditor Bylaw Changes Resistance Insufficient quality and number of HR’s Fragility of the Internal Audit Institutions, debilitate the principle of complementarity Insufficient financial Resources Technician Mobilility Incompatible wages Different development stages

Lack of Public Auditor Bylaw

Changes Resistance

Insufficient quality and number of HR’s

Fragility of the Internal Audit Institutions, debilitate the principle of complementarity

Insufficient financial Resources

Technician Mobilility

Incompatible wages

Different development stages

Challenges High Interaction with external audit Risk Management Increasing the covered budget Transversal Actions and their impact Quality training for internal auditors

High Interaction with external audit

Risk Management

Increasing the covered budget

Transversal Actions and their impact

Quality training for internal auditors

Initiatives Auditing Basic Manual To Facilitate Sharing of Knowledgement Partnership within other countries Annual Conference of Internal Audit Certification of Internal Audit profession

Auditing Basic Manual

To Facilitate Sharing of Knowledgement

Partnership within other countries

Annual Conference of Internal Audit

Certification of Internal Audit profession

Budget Subsystem Programmed and elaborated by the Module of Budgetary Programme

Public Accountability Subsystem This System has been computerized and integrated with the other systems There is a Budgetary Execution Module in all Minitries, provinces and 38 of 146 districts of the country. The system gives: Quaterly reports about the execution of the budget Government Financial Statements The 2007 Government Financial Statements has been elaborated based on the system information.

This System has been computerized and integrated with the other systems

There is a Budgetary Execution Module in all Minitries, provinces and 38 of 146 districts of the country.

The system gives:

Quaterly reports about the execution of the budget

Government Financial Statements

The 2007 Government Financial Statements has been elaborated based on the system information.

Public Accountability Subsystem Unique account managed by the treasury Payments are directly, although some are still made by advanced funds. Law 54/2005 – regulate the procurement process in the country was approved Acquisition unitiy management (UGEA´s) were established under the law 54/2005. UGEA´s members are ongoing training.

Unique account managed by the treasury

Payments are directly, although some are still made by advanced funds.

Law 54/2005 – regulate the procurement process in the country was approved

Acquisition unitiy management (UGEA´s) were established under the law 54/2005.

UGEA´s members are ongoing training.

Thank you for you attention

Thank you for you

attention