Review of a Country’s Public Financial Management System

1. Review of a Country’s Public Financial Management System (‘macro’assessment)

2. Why • Development objective • Fiduciary objective • Information on risk environment

3. Key principles • Transparent and open review of existing assessments • Provides context for future budget support or gov’t managed basket funding • Reliance on existing studies. If no assessment, advocate for one • Does not provide ‘pass’ or ‘fail’

4. What macro assesses… • National budget development and execution • Compliance with public sector accounting standards and internal control mechanisms • Control of cash and assets • Audit and oversight • Systems and staff

5. When • At CCA phase—identify capacity gaps • Review when other assessments become available • Change in environment

6. How to conduct the assessment • Review existing assessments: • Donors (DFID, CIDA, EC) • CFAA (World Bank) • Public Expenditure Review (World Bank) • Institutional and Governance Review (World Bank) • Diagnostic Study of Accounting and Auditing (ADB) • Prepare TOR (sample provided), share with gov’t, share costs among UNCT

7. Who should assess • Consultant! • Consultant’s profile • Should have examined PFM • Should be able to complete work within 4 weeks

8. Content of report • Up to 4 pages excluding annexes • Summary of findings in the key areas (budget, internal controls, control of cash, audit and oversight, systems and staff) • Summary of risks relating to transfer modalities • Assessment of Supreme Audit Institution • Opportunities for capacity development (if any) • Completed checklist

9. Sharing results with government and partners • Review report and conclusions • Results summarized in CCA