Public Financial Management for PRSP - Deutsches Institut für ...

More documents

Recommendations

Info

Stefan Leiderer et al. Figure 2: Levels of Control External Audit Compliance Value for Certification Money Expenditure Planning & Preparation of Budget Accounting Internal Control Internal Auditing of Accounts Financial Reporting Records Management Creation Maintenance & Use Disposition Source: GTZ (2006) In principle, two forms of accounting systems can be distinguished (Foster / Fozzard 2000, 17): — Accrual Accounting: transactions are booked when they legally arise and not when they are actually paid. Thus, expenditures are accounted for when liabilities arise due to the purchase of goods and services, even if payment has not yet been made. Revenues are accounted for when goods and services are sold, even if payment has not been received. The advantage of this system is that it captures the full costs of activities and provides a clear picture of the financial situation at any time during the process of budget execution. The main disadvantage lies in its complexity, so that its application does not seem appropriate for all countries, in particular developing countries where weak capacities limit effective cash flow management. — Cash Accounting: transactions are registered only when actual payments are done for the purchase or sale of goods and services. The advantage of this system lies in its simplicity. The disadvantage is that cash accounting does not provide a clear picture of the outstanding liabilities 36 German Development Institute
Public Financial Management for PRSP Implementation in Malawi and payment arrears at any point of time so that public agencies might lose track of the actual financial situation. In any democratic system, government and its administrative bodies have to be held accountable for their budget commitments and actions. External control over the budget process is exercised through a number of mechanisms and by various actors, above all national parliaments, supreme audit institutions and civil society organisations. The role of audit institutions Supreme Audit Institutions (SAIs) play a key role in promoting accountability, and transparency in the budget process and in uncovering issues such as the misappropriation of funds and corruption. They oversee the management of public funds and evaluate the credibility and quality of the reports dealing with the use of public funds by the government. To be able to play this role, SAIs need to be able to act independently from the executive in order to provide an impartial analysis of the execution of the budget by the government. The role of parliament The principal role of Parliament in the budget process is to scrutinise the budget in terms of priorities and effectiveness and thus exert political control over the budget. By approving the budget, Parliament has an important oversight function and can ensure that the allocation of resources is consistent with the national strategic objectives and political priorities of the electorate. Through the approval of the aggregate budget proposal, Parliament empowers and legitimates the government to execute its plans embedded in the budget (Fjelstad 2004, 19–24). It is also the role of Parliament to hold the government accountable for the proper implementation of the approved budget. For this Parliament depends on a timely and meaningful report provided by the supreme audit institution of the country. The role of civil society Civil society can influence the budget cycle primarily through the electoral process. In functioning democracies, the right to vote should enable the population to ensure that politicians really deliver the promised services and claim efficient and better policies. Furthermore, the organised groups of civil soci- German Development Institute 37
Page 3 and 4: Public Financial Management for PRS
Page 5 and 6: Studies Deutsches Institut für Ent
Page 7: Preface The present study on ‘Pub
Page 10 and 11: 4 The Case of Malawi 44 4.1 Why Mal
Page 12 and 13: Bibliography 151 Annexes 157 Tables
Page 14 and 15: Boxes and Tables in the Annexes Box
Page 16 and 17: DS EHP ESAF EU GBS GDP GoM GRF GTZ
Page 18 and 19: TOR UDF UNCDF UNDP UNV USAID VAP VD
Page 20 and 21: Stefan Leiderer et al. PRSP impleme
Page 22 and 23: Stefan Leiderer et al. A particular
Page 24 and 25: Stefan Leiderer et al. come to vary
Page 26 and 27: Stefan Leiderer et al. Particularly
Page 28 and 29: Stefan Leiderer et al. donors are s
Page 30 and 31: Stefan Leiderer et al. - Improved c
Page 32 and 33: Stefan Leiderer et al. medium- to l
Page 34 and 35: Stefan Leiderer et al. tion of the
Page 36 and 37: Stefan Leiderer et al. and systemat
Page 38 and 39: Stefan Leiderer et al. The methods
Page 40 and 41: Stefan Leiderer et al. Part I: Conc
Page 42 and 43: Stefan Leiderer et al. the PRSP app
Page 44 and 45: Stefan Leiderer et al. Those arguin
Page 46 and 47: Stefan Leiderer et al. accounts, bu
Page 48 and 49: Stefan Leiderer et al. It must be n
Page 50 and 51: Stefan Leiderer et al. The typical
Page 52 and 53: Stefan Leiderer et al. Administrati
Page 56 and 57: Stefan Leiderer et al. ety may have
Page 58 and 59: Stefan Leiderer et al. 9. Transpare
Page 60 and 61: Stefan Leiderer et al. The main res
Page 62 and 63: Stefan Leiderer et al. 3.3 Structur
Page 64 and 65: Stefan Leiderer et al. never gained
Page 66 and 67: Stefan Leiderer et al. its relevanc
Page 68 and 69: Stefan Leiderer et al. pronounced i
Page 70 and 71: Stefan Leiderer et al. — Several
Page 72 and 73: Stefan Leiderer et al. Table 1: Pop
Page 74 and 75: Stefan Leiderer et al. more by info
Page 76 and 77: Stefan Leiderer et al. tion of the
Page 78 and 79: Stefan Leiderer et al. Table 2: The
Page 80 and 81: Stefan Leiderer et al. ing due to o
Page 82 and 83: Stefan Leiderer et al. authorised t
Page 84 and 85: Stefan Leiderer et al. (in particul
Page 86 and 87: Stefan Leiderer et al. Figure 3: In
Page 93 and 94: Figure 5: Institutional Setup of Ma
Page 97 and 98: Box 10: The formal and informal ins
Page 99 and 100: MTEF Stage 6 MoF holds consultation
Page 105 and 106:
Public Financial Management for PRS
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Table 6: GRF Allocations Approved e
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Figure 10: PFM under uncertainty Ca
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175:
Annexes
Page 178 and 179:
Stefan Leiderer et al. are employed
Page 180 and 181:
Stefan Leiderer et al. During the f
Page 182 and 183:
Stefan Leiderer et al. Box A 1: Tri
Page 184 and 185:
Stefan Leiderer et al. The politica
Page 186 and 187:
Stefan Leiderer et al. Annex 2 Tabl
Page 188 and 189:
Stefan Leiderer et al. Mayesa, Mr.
Page 190 and 191:
Stefan Leiderer et al. Thole, Pamel
Page 192 and 193:
Stefan Leiderer et al. 6 Committee
Page 194 and 195:
Stefan Leiderer et al. Chanza, Bill
Page 196 and 197:
Stefan Leiderer et al. Full Assembl
Page 198 and 199:
Stefan Leiderer et al. owned busine
Page 201 and 202:
Publications of the German Developm
Page 203 and 204:
Discussion Paper 16/2007 Schirm, St
show all

Public Financial Management for PRSP - Deutsches Institut für ...

Create successful ePaper yourself

Delete template?

Save as template?