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Harari People National Regional State. Reform Awareness Workshop. January 2006. Structure of Presentation. Awareness on the Reforms On going Reform activities in Harari Identify specific areas of support from Public Body Heads Question and Answers. Background.
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Harari People National Regional State Reform Awareness Workshop January 2006
Structure of Presentation • Awareness on the Reforms • On going Reform activities in Harari • Identify specific areas of support from Public Body Heads • Question and Answers
Background • Expenditure Management and Control Sub-Program is one of the five sub programs of the Civil Service Reform
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
Components of EMCP • Legal Framework • Budget Reform • Accounts Reform • Expenditure Planning • Internal Audit • External Audit • Cash Management • Financial Management Information System • Human Resource Development
Program Management • National Steering Committee • EMCP Coordination Office • Regional Steering Committee • Regional Reform team
Reasons for Financial Reform • The system was designed for a unified rather than a fiscally devolved system • The accounts system provided only rudimentary control (cash only) • The way the budget was classified & structured did not facilitate the management & planning of public finances
Reasons for Financial Reform …continued • 6 years backlog in finalizing accounts • Modernization of public sector financial system • Conditionality of Development Partners • Requirements of new aid modalities • No IT system leading to inefficiency
Region Budget Reform Accounts Reform Expenditure Planning Federal ü ü ü SNNPR ü ü ü Tigray ü ü ü Amhara ü ü ü Oromia ü ü ü Ben/Gumz ü ü Harari ü ü Afar ü Somali ü Gambella ü Adis Ababa ü ü Dire Dawa ü ü Status of the reform as of FY 1998
Benefits of the Reform • Legal framework established • Accounts backlog reduced to one year • Budget approved and notified on time • Budget & Accounts manual/module developed and translated (Amharic, Oromiffa, Somali & Tigrigna) • Financial Information System developed and used (BIS/BDA) • 56,000 staff trained • Staff empowered
Benefits of the Reform…cont’d • Standard Chart of Accounts used • Budget structure standardized • Cash and management control • Comprehensive reporting • Implement modern accounting systems • Development partners confidence increased • Direct budget support • Debt write off • Ramping up financial support
On Going EMCP projects at Harari • Budget Reform • New Chart of Accounts • New Budget Structure • Forms • Cost Center Budgeting • BIS • Budget Calendar
On Going EMCP…cont’d • Accounts Reform • Double Entry Bookkeeping • Modified Cash Basis of Accounting • New chart of accounts • Commitment accounting • New forms, registers, ledgers and reports • Comprehensive reporting • BDA
Main Achievements • Budget Reform • Budget manual and module developed • Development of new budget classification • Cost center budgeting • New chart of accounts used for FY 98 budget preparation • Printing & distribution of forms • FY 98 budget approved and notified • Budget processed using BIS • 200 Budget experts trained
Main Achievements…cont’d • Accounts Reform • Accounts manual and module • New chart of account used for FY 98 • Recruitment of additional staff • Printing & distribution of forms • FY 98 accounts processed using new accounts system • 200 accountants trained
Performance of Public Bodies Medium Outstanding
Performance of Public Bodies …cont’d Poor Performance
Areas of Support required • Public Body Heads • Implement organizational structure • Match Capacity to Job • Conduct regular management meeting • Follow up monthly reporting • Finance Heads • Verify report • Manage and control Cash and Bank daily • Ensure account records are up to date
Areas of Support requiredcont’d • BOFED • Management of reform • Provide technical support • Verify reports • Consolidate Region accounts