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Public Financial Management Public Financial Management (PFM) Reforms Progress (PFM) Reforms Progress

GATABAZI E. Thomas Accountant General

22nd November 2006

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Presentation OutlinesPresentation Outlines1. Reforms Coordination2. PFM Legal Framework3. Capacity Building4. GoR Consolidated Financial

Statements 5. Treasury Management6. Integrated Financial Management

System (IFMS)7. PFM Trust Fund

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Reforms CoordinationReforms Coordination

I. National PFM reforms Steering Committee.

II. Technical Secretariat.

III. 5 Sub-committees of the steering committee.

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Steering CommitteeSteering CommitteeNational PFM reforms Steering Committee re-established (June 2006); members:MINECOFIN, MINALOC, AOG, RRA, BNR& NTB

- Initially Meeting weekly on every Wednesday.- Mandate:

Monitor & oversee reforms progress.Produced a 3-yrs PFM action plan

( approved by cabinet on 6/9/2006)

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Reforms Coordination..Reforms Coordination.. Technical Secretariat:

Mandate: –To support the steering committee.–Lead by a PFM reforms coordinator ( started on 1st Nov), The consultant works full time.

- The Secretariat will be made up of focal points from different MINECOFIN departments.

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Technical Secretariat..Technical Secretariat..Among the main roles: Coordinate, monitor and evaluate and report

to the Steering Committee on the performance against the PFM reforms Action Plan.

Prepare agendas and meetings of the Steering committee.

Once the Secretariat has been established

and is full functioning the Steering committee will be meeting monthly to review progress.

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Other arrangements proposed:Other arrangements proposed:- 5 Sub-committees:

i. Intergovernmental Fiscal Relations

ii. Integrated Financial Management Systems (IFMS)/ ICT

iii. Financial Management and Accountability (Accounting, Auditing & Treasury)

iv. Procurement

v. Planning & Budgeting

-Quarterly meeting with Representatives

from Donors (to start next year)

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PFM Legal FrameworkPFM Legal Framework The long waited OBL (for 3yrs) was

gazetted (12th Sept 2006) Financial Regulations were approved by

Cabinet on 11th Oct 2006, to be gazetted soon.

Financial Management & Accounting manuals of policies & procedures have been produced to be circulated to end users.

Conduct workshops for Senior Budget Managers/ mid-level officials on OBL & FRs ( mid-Dec, 2006)

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Capacity BuildingCapacity BuildingTraining of accountants and internal

auditors The objective is to create sustainable

capacity for public accounting and internal audit in Government Institutions

The training of accountants and internal auditors is carried out in the framework of the “Rwanda Expertise Scheme (RES)” - a scheme designed under HIDA to provide rare and unique skills in the economy

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Training of accountants and Training of accountants and internal auditors…..internal auditors…..

The training is two-fold: short-term (skills enhancing on Rwanda Public Accounting System) and long-term (on ACCA)

The ACCA Certification was chosen due to its presence in Rwanda at SFB and its global qualification appeal

Started in May 2006 and First set of professional examinations is December 2006 sitting. {220 are on ACCA part 1}.

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Training of accountants and Training of accountants and internal auditors….internal auditors….

Training is conducted on part time basis in the evening for those working in Kigali, to avoid disruption of their daily work.

For upcountry employees, it is on “Block Release” a full- week ( 3rd week of each month)

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2006 accounts consolidation2006 accounts consolidation Objective is to produce the 1st GoR

Consolidated Financial Statements (2006)

A private firm (PwC) has been contacted (we got a N/O of the negotiated contact from WB yesterday).

The firm will support our accountants to:– Establish opening balances as at 1st

January 2006 – Write books of account for 2006

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2006 accounts consolidation..2006 accounts consolidation..To prepare GoR’s consolidated financial statements as at 31st December 2006- to be produced & Submitted to OAG by 31st March 2007.

The expectation is that the Consultancy produces 2006 statements & leaves lasting capacity to prepare FSs for subsequent years.

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Treasury ManagementTreasury Management

Cash Management:− A 3-month cash flow plan was adopted

since 1st Jan 2006, and became spending limit of the budget agencies.

− Budget agencies have gained pace and are now used to preparation of quarterly cash flow plans

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Treasury Management…Treasury Management… Establish Single Treasury Account:

– A system of zero balance drawing bank accounts is operational and all government agencies are now using Zero balance sub accounts.

– All government dormant accounts from BNR were closed, next phase is for bank accounts in commercial banks.

– All districts dormant accounts were closed.

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Treasury Management…Treasury Management… Debt management system:

– MINECOFIN & BNR debts data base have been reconciled. (Q1, 2006 → )

– Update the existing database and conversion to DMFAS ver 5.3 (Q4,2006)

– Train staff on DMFAS ver 5.3 and initiate consolidation link btn MINECOFIN& BNR (Q4,2006)

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Integrated Financial Management Integrated Financial Management System (IFMS)System (IFMS)

It is expected that the implementation of the Smartgov project will in the medium term transform into an Integrated Financial Management System (IFMS) model project.

IFMS will consist of core expenditure management system (EMS) modules, including budgeting, accounting and cash management,

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IFMS….IFMS…. IFMS will be interfaced with other GoR systems like

revenue, public debt management and payroll. Currently:− BudgetMaster (Budget module) was used to prepare

the 2006 Budget. It is also used for reporting and monitoring of budget execution since 1st January 2006.

− PublicBooks (Accounting module) is an accounting system, it needs further development, more system specifications are being worked on, it is expected to be available for bookkeeping 2008 transactions.

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PFM Trust FundPFM Trust Fund It is a fund to support PFM activities. It is administered by the World Bank

through HIDA under (Public Sector Capacity Building Project - PSCBP)

It will allow for a harmonized financing approach for PFM reforms

The First PFM Trust Fund Partners include the EU, DfID and the World Bank’s PSCBP

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PFM Trust Fund…..PFM Trust Fund…..

Objective: The objective of the trust fund is to

support the GoR’s PFM reforms program

Activities1) Building sustainable capacity for

public accounting and internal audit under the Rwanda Expertise Scheme (RES)

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PFM Trust Fund…..PFM Trust Fund…..

2) Support Coordination, monitoring and evaluation of PFM reforms:

i. The operations of a PFM reforms secretariat and steering committee

ii. Technical assistance to the annual sector public expenditure review process;

iii. An annual evaluation of PFM based on the Public Expenditure and Financial Accountability (PEFA) Performance Measurement Framework.

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PFM Trust Fund…..PFM Trust Fund…..3)Supporting the development of the

SmartGov system modules through system development, testing, and training of responsible staff.

4)Capacity building support for the reform of the procurement system, through training and technical assistance.

5)Increasing the capacity of the Office of the Auditor General through training

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END OF THE PRESENTATION

THANK YOU