Reforming Public Financial Management by qau19822


									Economic Policy / Good Governance

Reforming Public
Financial Management
in African Countries

Programme 2005-2007
    Reforming Public Financial Management
    in Support of NEPAD

    Strengthening public financial management       The training programme consists of five topi-                                Project Preparation                                The workshop and the follow-up meeting help-
    is generally recognized as a key element of     cal seminars for senior and middle level staff                               The training programme has been prepared in a      ed identifying training and capacity building
    good governance, which is a cornerstone of      from Ministries of Finance and Supreme                                       participatory manner, including through a          needs in public financial management of the
    the New Partnership for Africa’s Development    Audit Courts as well as parliamentarians who                                 planning workshop in Ethiopia in September         participating countries, while providing a sound
    (NEPAD) that was initiated by African           serve on budget or public accounts commit-                                   2004 and a follow-up preparatory meeting on        basis for developing the design and the topics
    Leaders in 2001. By subscribing to NEPAD,       tees from five African countries (Botswana,                                  curriculum development in South Africa in De-      of the series of tailor-made training seminars
    the governments of African countries have       Ethiopia, Ghana, Nigeria, and South Africa).                                 cember 2004. Representatives from the Minis-       that will be implemented during 2005-07. Both
    emphasized their commitment to reform           The seminar series covers all aspects of the                                 tries of Finance, the Supreme Audit Courts and     events also helped fostering a network of the
    public financial management, thereby con-       budget cycle (from budget planning to exter-                                 parliaments of the five selected countries par-    participants from the five countries and inten-
    tributing to better governance, economic        nal audit) as well as revenue issues. The pro-                               ticipated in both events, alongside staff from     sifying the dialogue about different approaches
    growth, poverty reduction and achieving the     gramme is financed by the German Federal                                     national training institutes as well as experts    to reform in public financial management.
    Millennium Development Goals. The German        Ministry for Economic Cooperation and                                        from the German Federal Ministry of Finance        Following the preparatory phase, a series of
    government strongly supports NEPAD and its      Development (BMZ).1                                                          and the German Federal Supreme Audit               five topical seminars will be implemented
    goals. Public financial management has been                                                                                  Institution.                                       during the period 2005-2007 for participants
    a key area of support for German develop-                                                                                                                                       from the selected countries.
    ment assistance for many years. During 2005 -
    2007, InWEnt is implementing a training
    programme that contributes to the strength-
    ening of public financial management in
    support of NEPAD in a selected number of
    African countries.
    The objective of the programme is to facili-
    tate the dialogue on budget reform initia-
    tives and to enhance the sharing of experi-     1 It is coordinated with the Collaborative Africa Budget Reform Initiative
                                                      (CABRI) that has been initiated by three African countries
    ences and good practices in public financial      (Mozambique, South Africa, and Uganda) and that is also supported by
    management.                                       the BMZ through the German Agency of Technical Cooperation (GTZ).



2                                                                                                                                                                                             South Africa                             3
    Outline of the Seminars

    1. Seminar on „Planning, Budgeting, Accounting and Reporting“                                          4. Seminar on „The Role of External Audit in the Accountability Process“
    Content /Objectives                                                                                    Content /Objectives
    • Translating priority policies and programme (e.g., PRSP priorities) into annual budget               • The role of parliament in the accountability process
    • Incorporating policy responses due to macroeconomic changes in budget plans                          • Improve the understanding of the external auditor in the accountability process
    • Different budget classifications (economic, functional) and accounting bases (cash versus accrual)   • The role of audit findings of SAI in the planning process of the annual budget
    • Better integrating annual budgets and MTBFs                                                          • Audit standards for compliance and performance audit
    Primary Target Group                                                                                   • INTOSAI principles on independence
    • Senior or middle-level staff from Ministries of Finance from planning, budgeting, and                • SAI reports to parliament and follow up on detected deficiencies
      accounting departments                                                                               Primary Target Group
    Duration: 5 days                                                                                       • Senior or middle-level staff from Supreme Audit Institutions, Ministries of Finance,
                                                                                                             and Public Accounts Committees
                                                                                                           Duration: 5 days
    2. Seminar on „Oversight Responsibilities of Legislators“
    Content /Objectives
    • Financial management and environment                                                                 5. Seminar on „Internal control“
    • Accountability process with regard to strategic planning, budgeting, annual reports including        Content /Objectives
      the interpretation of annual financial statements                                                    • Internal Auditing Standards and Ethics
    • Understanding the role of the Auditor General                                                        • Internal control systems
    • Understanding non-financial performance information                                                  • Internal audit, audit committees, internal procedures
    Primary Target Group                                                                                   • Risk assessment
    • Parliamentarians who serve on parliamentary committees (e.g., Budget, Finance,                       • Asset management
      Public Accounts Committees)                                                                          • Fraud detection techniques
    Duration: 4 days                                                                                       Primary Target Group
                                                                                                           • Senior or middle-level staff from Ministries of Finance from planning, budgeting,
                                                                                                             and accounting departments
    3. Seminar on „Revenue management“                                                                     Duration: 5 days
    Content /Objectives
    • Planning of short, medium and long term revenue
    • Tools and procedures for revenue collection                                                          6. Evaluation Seminar
    • Planning of strategies for revenue collection                                                        Content /Objectives
    • Monitoring and evaluating revenue collection during the year                                         • Evaluate the seminar series
    • Different ways of responding to shortfalls in revenue collections                                    • Lessons learned regarding public financial management reform
    Primary Target Group                                                                                   Primary Target Group
    • Senior and middle-level staff from Ministries of Finance and revenue collection agencies             • Former participants of the seminar series, i.e. senior and middle-level staff from
    Duration: 5 days                                                                                         Ministries of Finance, Supreme Audit Institutions, and Public Accounts Committees
                                                                                                           Duration: 3-4 days

4                                                                                                                                                                                                   5
    InWEnt Capacity Building Concept                                                                       Schedule of Seminars

    The training programme is designed on the           seminar sessions. Thus, the seminars focus not
                                                                                                             Year     Topic                                                                       Place
    basis of InWEnt’s modern capacity building          only on relevant theoretical and policy matters,
    concept which reflects the notion that building     they also provide „hands-on“ experience deliv-       2004     Planning Workshop and Curriculum Development                                Ethiopia, South Africa
    capacity includes focusing on the individual        ered through technical experts from relevant
    (e.g., senior budget official) as well as the       African and German institutions.                     2005     Seminar on „Planning, Budgeting, Accounting and Reporting“ Ghana
    organisational (e.g., Ministry of Finance) and
    systemic level (e.g., public financial manage-      Instruments                                          2006     Seminar on „Oversight Responsibilities of Legislators“                      Germany
    ment). The seminars target key individuals who      In order to strengthen the capacities on the
    could, following the seminars, act as multi-        different levels, a mix of capacity building                  Seminar on „Revenue management“                                             Nigeria
    pliers, thereby contributing to changes at the      instruments are being used in the training pro-
                                                                                                             2007     Seminar on „The Role of External Audit in the
    organisational as well as the systemic level. We    gramme. Besides face-to-face seminars, these                  Accountability Process“                                                     South Africa
    therefore also include representatives of nation-   instruments include international policy dia-
    al and regional training organisations in the       logue, internet-based Shared Work Spaces                      Seminar on „Internal Control“                                               South Africa
    preparation and implementation of the seminar       (SWS) and the use of our numerous Alumni-
    series. In doing so, we enable these organisa-      networks through which we can reach thou-                     Evaluation Seminar
    tions to utilize course materials, topical inputs   sands of former participants of InWEnt training
    and findings for other training courses.            events.

    Methods                                                                                                Creating „Learning Communities“
    The seminars emphasize a participatory
    approach and make use of various methods,                                                              The InWEnt training programme on public           Through the SWS the participants of each of
    including presentations on international good                                                          financial management aims at supporting the       the five seminars will have permanent, quick
    practices, case studies, group work oriented                                                           establishment of networks and „learning com-      and easy online access to all course materials,
    towards solving specific cases, etc. Country                                                           munities“ both within and across selected Afri-   summaries of the discussions and documents
    representatives are generally asked to prepare                                                         can countries, within the context of a harmo-     produced during each of the seminars.
    specific topical inputs and contributions for the                                                      nized approach of donors to public financial      Participants can use the SWS to update them-
                                                                                                           management.2                                      selves at any time on the progress of the train-
                                                                                                           As part of the project, a Shared Workspace        ing programme, they can use it as an interac-
                                                                                                           (SWS) is being created to enhance the contin-     tive platform to exchange knowledge and views,
                                                                                                           uous exchange among all participants of the       and they are able to contact each other easily.
                                                                                                           seminars series throughout the project, foster-
                                                                                                           ing „learning communities“ on public financial
                                                                                                           management issues, both within and across
                                                                                                                                                             2 The process of designing the series of training events has also been
                                                                                                                                                               guided by the DAC Guidelines on Harmonizing Donor Practices for
                                                                                                                                                               Effective Aid Delivery in Public Financial Management.

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InWEnt – Internationale Weiterbildung und Entwicklung gGmbH
Capacity Building International, Germany

InWEnt – Capacity Building International,             ther multilateral organisations. Main cooperation
Germany, stands for the development of human          partners are the KfW Bankengruppe (KfW banking
resources and organisations within the framework      group), the Deutsche Gesellschaft für Technische
of development cooperation. InWEnt offers             Zusammenarbeit (GTZ) GmbH (German Technical
courses that cater to skilled and managerial staff    Cooperation) and private business foundations.
as well as decision makers from business, politics,
administrations and civil societies worldwide.        InWEnt was created in 2002 through the merger
                                                      of Carl Duisberg Gesellschaft e.V. (CDG) and the
With the education, exchange and dialog pro-          German Foundation for International Develop-
grammes for approximately 55,000 persons per          ment (DSE). In keeping with the tradition of the
year, InWEnt constitutes the largest joint initia-    predecessor organisations, both Länder and Ger-
tive of the German Federal Government, the            man business are shareholders and thus ensure
Länder (German federal states) and the business       that InWEnt is firmly anchored in society.
community. The centres in Bonn and Cologne and
30 other locations in Germany and abroad employ       Within its business fields, InWEnt amalgamates
roughly 850 staff.                                    the decades of expertise and regional experience
                                                      contributed by CDG and DSE. The methodological
The organisation commands a total annual budget       repertoire is structured along broad lines, making
of approximately EUR 130 million. The Federal         it possible to customise modules to fit the specif-
Government is main shareholder and represented        ic requirements of customers and tasks and pro-
by the Federal Ministry for Economic Cooperation      vide appropriate solutions. The employment of
and Development (BMZ), which is also the main         new media permits the development and imple-
financial contributor. Approximately 40 percent of    mentation of innovative knowledge management
the budget is from further commissioning bodies,      methods, the launching of international virtual
in particular the Federal Ministry of Education       learning communities, and the promotion of
and Research, the Foreign Office (AA), the Federal    multiplier systems.
Ministry for Economy and Labour, and, increasing-
ly, the European Union (EU) as well as various fur-

  InWEnt – Internationale Weiterbildung                 Contacts at InWEnt
  und Entwicklung gGmbH                                 Ms. Judith Hoffmann

  Capacity Building International, Germany              Senior Project Manager
  Friedrich-Ebert-Allee 40                              Division 2.01
  53113 Bonn, Germany                                   Economic Policy/Good Governance
  Fon: +49 (0) 2 28 - 44 60 - 0                         Hallerstrasse 3
  Fax: +49 (0) 2 28 - 44 60 - 27 66                     10587 Berlin, Germany                                        Fon: +49 (0) 30 - 43 996 - 335
                                                        Fax: +49 (0) 30 - 43 996 - 336

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