How FAD is implementing the MTS

Liberia – Duke University Program
PFM reform strategy
Duncan Last
Public Financial Management Division
March 4, 2011
I. Recent history of PFM reforms in Liberia
II. The 2009-12 reform priorities
III. The draft PFM Reform Strategy for 2012-14
IV.Your views?
I. Recent history of PFM reforms in Liberia
Review of
Creating the
Key inputs
from external
First draft
of PFM
Second draft
of PFM
Merger of BoB with MoF
PEFA assessment work (WB/FAD/AfDB)
FAD PFM progress review and action plan
Work on the legal framework initiated
Health Ministry financial management project
Work on the PFM Law
Work on accompanying financial regulations
Development of PRS
WB Public Expenditure Reviews (PER)
Start of the IFMIS project
PEMFAR (PEFA+PER) published
FAD PFM review – reform priorities 2009-12
PFM Law adopted
PFM regulations finalized
Internal audit strategy
Based on FAD/2009 + PEMFAR
Internally driven
Adopted in Cabinet, but left unfinished?
Establishment of PFM reform coordination unit
Establishment of unified accounting function
Update of strategy - Part of planned FAD TA
Input from WB – new PFM support through EGIRP II
First meeting of PFM Steering Committee
II. The 2009-12 reform priorities
A. Key focal areas
– Implement the PFM legal framework
– Strengthen the framework and institutional
arrangements for accounting
– Improve payroll management and controls
– Introduce cash flow planning, debt management
and strengthen treasury decision-making
– Develop a modern internal audit function
– Implement a modern IFMIS
II. The 2009-12 reform priorities
B. Other areas of on-going reforms
– Strengthening planning and budgeting
• DoB organization, MTEF, donor funding on budget
– Strengthen budget execution coordination and
• Coordination between MoF and M&As, reduce LPO
rejection rates, emergency spending procedures
– Strengthen the procurement process
C. Accompanying measures
– Reform coordination, monitoring, capacity building
III. The draft PFM reforms strategy for 2012-14
• Strategic objective
– The overall objective of the PFM reform
strategy in Liberia during the next four years
is to widen and strengthen the foundation of
public financial management, while at the
same time pursuing concrete improvements in
selected systems, procedures and resources,
and in a manner to gradually develop Liberia’s
own institutional, organizational, informational
and human resource capacities.
III. The draft PFM reforms strategy for 2012-14
• Major outcomes
– appropriate laws, rules, and systems are in place
throughout GoL, and increasingly observed and enforced, to
produce greater fiscal discipline and integrity, closer link of
resource allocation to government policy, and some
improvement in operational efficiency;
– the MoF and the MoPEA have the authority and ability,
under the law, to enforce the rules and guide the budgeting
– the capacity of the major line M&As as well as several
county administrations is significantly improved; and
– public financial accountability is strengthened, mainly
through developing Parliament’s ability to perform
adequately its roles of approval and oversight.
III. The draft PFM reforms strategy for 2012-14
Major Objectives
Economic management
Primary Responsibility
improve GoL capacity for accurate and timely medium-term macroeconomic
and fiscal forecasting
Planning and public investment raise public investment efficiency and effectiveness, aligned to policy
priorities and available funding
Budget coverage and
strengthen the credibility, coverage, coherence and impact of the budget, as
well as the quality of its legislative consideration and timely approval
Revenue administration
improve the efficiency and integrity of revenue administration
Budget execution, accounting
and financial reporting
reduce fiduciary risk by improving adherence to the approved budget, and
foster efficiency in budget implementation
Revenue Department,
Expenditure Department,
improve efficiency and integrity in public procurement, and strengthen
monitoring and oversight capabilities
Internal control and internal
strengthen financial integrity and rule compliance throughout the GoL,
focusing on simple but robust controls and building an internal audit capacity
MoF, with advisory input
from GAC
External Audit
intensify efforts to produce timely and relevant external audits and to follow
up on audit findings
strengthen accountability of the executive branch to the legislature in the area
of public financial policy and management
Auditor General, GAC
progressively strengthen GoL capacity to manage public finances, reducing
dependence over time on external advisors and temporary contractual staff
MoF, coordinated by RCU
Legislative oversight
Capacity development
MoPEA Departments
Budget Department, MoF
Legislature and its
IV. Your views?
• Do you agree with the overall objective?
– If not, what should it be?
• Are the outcomes appropriate/relevant?
– What changes should be made, if any?
• Do the components address current needs
and directions?
– What is missing? Are they adequately prioritized?
• Is this plan achievable by 2014?
– What are the potential risks?
– Is the funding level right/appropriate?

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