somali region implementation of the emcp reform projects in somali region december 2005

Somali Region

Implementation of the EMCP reform projects in

Somali region

December 2005

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Structure of Presentation Background of EMCP Objectives and Goals of EMCP Components and Program Management of

EMCP Status of Reforms Evolutionary Approach to Reform Benefits of Reform Reform Activities Planned in Somali Region Progress to date Constraints facing Reform Immediate Assistance required from the region Support required from senior officials

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Background Expenditure Management and

Control Sub-Program is one of the five sub programs of the Civil Service Reform

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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

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Components of EMCP Legal Framework Budget Reform Accounts Reform Expenditure Planning Internal Audit External Audit Cash Management Financial Management Information

System Accounts and Audit Professional

Development

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Program Management National Steering Committee EMCP Coordination Office Regional Steering Committees Regional / Federal Reform

Teams

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Status of ReformsRegion

Budget Reform

Accounts Reform

Expenditure Planning

Federal

SNNPR

Tigray

Amhara

Oromia

B/Gumuz

Harari

Afar

Somali

Gambella

Addis Ababa

Dire Dawa

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Reform is a process not a product Contextual with prudent ‘best’

practice Begin with exiting government

systems, improve and innovate Devolution requires evolution Reform at the pace of

government IT should support not drive a

financial reform

Multi-year exp. Planning Performance budgetsFinancial StatementsMgmt accountingOn-line FIS (IBEX)MIS

Cost Center Budget Double/E, Mod/Cash AcctsBIS/BDA

Line Item Budget Single Entry, Cash AcctsSpreadsheets FY 89 FY 91-95

FY 99

Evolutionary Approach to Reform

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Benefits of Reform Legal framework established Accounts backlog reduced Budget & Accounts manual/module

developed and translated (Amharic, Oromiffa, Somali & Tigrigna)

Financial Information System developed and used (BIS/BDA)

55,691 staff trained

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Benefits of Reform…cont’d Standard chart of accounts used Budget structure standardized Improved cash and management

control Development partners confidence

increasedo Direct budget support reportingo Debt write offo Ramping up financial support

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Improve content and quality of information

Provide more timely information Increase transparency Accounts undertaken at single pool Single treasury system developed Reduce costs Modernizes public sector financial systems Meets international standards

Benefits of Reform…cont’d

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Reform Activities Planned in Somali Region

Budget Reform – FY 1997/98 Budget Execution – FY 1998 Accounts Reform– FY 1998/99

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Progress to Date Budget Reform

Budget manual and module developed Development of new budget structure Cost center budgeting New chart of accounts used to prepare

FY 98 budget Printed & distributed new budget

preparation forms

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Progress to Date… cont’d Region-wide training delivered Over 1,200 budget experts trained FY 98 budget is under

preparation Budgets are being processed

using BIS

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Progress to Date …cont’d Budget Execution

Single Pool and Single Treasury Systems implemented

Budget execution manual/module developed

New chart of accounts introduced New forms under print TOT Training delivered

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Constraints Facing the Reform Delay in approval of blocked grant

formula Delayed delivery of budget preparation

training Delay in budget approval at region and

sub-regional levels Delayed budget execution training Delayed printing of budget execution

forms

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Constraints Facing the Reform

Inadequate staff capacity Number of staff assigned to posts Low technical capacity

Poor infrastructure Communications Power Office space, furniture, equipment,

etc

Delays in commencement of FY 98 accounts

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DSA Strategy

Conduct a region-wide assessment of the implementation of budget reform

Deliver a region-wide budget execution training to strength the wereda Financial Management

Provide on the job support to expedite accounts closure

Conduct reform awareness workshop for senior officials

to strengthen the budget reform implementationto introduce the accounts reform

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DSA Strategy… cont’d

Provide extensive support to weredas Deliver refresher training on budget

preparation Design accounts manual and training

modules Deliver region wide accounts training Provide post implementation support Install and implement BDA

to strengthen the budget reform implementationto introduce the accounts reform … cont’d

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Immediate Assistance required from the region Procure accounts reform forms well

in advance of the accounts reform Recruit qualified accountants at

regional and wereda levels Assign qualified accountants to key

posts in the Accounts Department Allocate budgetary resources to

strengthen the Finance Offices

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Area of Support Required Office Heads

Recruit qualified staff Implement organizational structure Match technical capacity to job

requirements Minimize staff reassignments

Finance Heads Assign dedicated staff to work on closure of

FY 97 accounts Ensure account records are up to date for

FY 98 given the delays in commencement of accounts

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Area of Support Required…cont’d

BOFED Should Lead the Reform

On: Policy issues Technical issues Management and operational issues

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Area of Support Required…cont’d

To: Enhance quality of the technical design

Ensure timely and quality implementation

Minimize risk of failure Ensure future sustainability