PEFA Newsflash August 2022

Publication of the PEFA 2021 Agile Madagascar Assessment

The PEFA 2021 Agile Madagascar assessment is the second assessment of the country applying the PEFA 2016 Methodology. It was conducted by the Government and financed by the EU. The report shows improvements since the previous assessment completed in 2018 in the following three indicators: Macroeconomic and fiscal forecasts, Medium-term perspective of expenditure budgeting, and the Effectiveness of internal controls over non-salary expenditures.

Read the Report in French: report

PEFA 2021 Madagascar Agile Report: summary of scores

Publication of the PEFA 2022 Jordan Assessment

The PEFA 2022 Jordan National Assessment, led by the Government and sponsored by the EU, provides an overview of progress in PFM since the previous assessment in 2017. The results show some gradual improvements in maintaining aggregate fiscal discipline; the effectiveness of cash and debt management; prompt and accurate budget execution reporting; continuing efforts to improve the strategic allocation of resources through strategic plans for service delivery and better performance indicators; an extended range of fiscal information published promptly, and other indicators.

Read the report in English:  report

PEFA 2022 Jordan Report: summary of scores

Publication of the PEFA 2019 Sao Tome e Principe  Assessment

The PEFA 2019 Sao Tome e Principe Assessment is published in English and Portuguese. The assessment was led by the Ministry of Planning, Finance and Blue Economy (MPFEA) with the technical and financial support of the EU. Identified achievements from the previous assessment include: more reliable budget estimates, institutional strengthening, improvement of revenue and expenditure forecasts, and better cash management, revenue collection and debt management.

Read the reports in English and Portuguese : reports

PEFA 2019 Sao Tome e Principe Report: summary of scores

Publication of the PEFA 2022 Mexico Chihuahua Municipality with Climate PFM Assessment

The 2022 PEFA Mexico Chihuahua Assessment is the first sub-national evaluation carried out by the Municipality of Chihuahua which financed the assessment from its own resources in order to learn more about the performance of Mexico’s municipal PFM systems compared to international best practices.
The best-rated pillars are: predictability and control in budget execution, accounting and reporting, and the management of assets and liabilities.
This self-assessment also includes a PEFA Climate Annex, using the PEFA Climate Responsive Public Financial Management Framework.

Read the Report and Climate Annex: report and climate annex

PEFA 2022 Mexico Chihuahua Municipality Report: summary of scores

Publication of the PEFA 2022 Cambodia Assessment

The PEFA 2022 Cambodia Assessment is the country’s third such assessment. It was led by the Government and implemented with the technical support of the European Union. Nine indicators improved their scores compared to the previous assessment completed in 2015. In most areas, PFM performance is aligned with basic standards and several indicators meet the requirements for good practice.
Read the Report in English: report

PEFA 2022 Cambodia Report: summary of scores

Publication of the PEFA 2022 North Macedonia Assessment

The PEFA 2022 National Assessment for North Macedonia, led by the World Bank and the IMF is the second assessment for the country. Eleven indicators show an improvement in performance, mainly in the areas of budget formulation, budget execution and reporting, and external oversight.

Read the reports in English and Macedonian: reports
PEFA 2022 North Macedonia Report: summary of scores

HIGHLIGHTING PEFA VIDEOS

As part of the PEFA 20 Year Anniversary events, Richard Allen, former Head of PEFA Secretariat (2001-2003) in a video conversation with Srinivas Gurazada, Head of the PEFA Secretariat, reflects on the past two decades of PFM experience, looks back on the early days of PEFA, and shares views on Post-COVID PFM and the outlook for young PFM professionals.

In this short video interview, Mme. Harilala Onintsoa Raoilisoa, PFM Reforms Coordinator, Ministry of Economy and Finance, Madagascar, shares her experience of undertaking a PEFA assessment in the country. She highlights how the results of the PEFA assessment helped the government identify priority actions for PFM reform, as a means of improving the living conditions of the population.

In this short video interview, Mr. Mod K. Secka, Permanent Secretary, Ministry of Finance and Economic Affairs, shares his experience of undertaking a PEFA assessment in The Gambia, with the goal of evaluating the strengths and weaknesses of PFM systems and developing new strategies for improvement. He believes that: “If we can strengthen the weaknesses that we have, particularly in getting maximum impact from the resources that we are allocating through the budget, it will be a big achievement”.

Publications

Cash Management and Commitment Control: Principles and Problems in Practice

This WBG publication highlights the challenges caused by COVID -19 for ministries of finance - a sudden reduction in cash inflows, combined with a new set of significant unplanned expenditures - and shows examples of country experiences to illustrate both problems and solutions.

Could be of interest to those using country examples and working on

Pillar I: Budget Reliability

Pillar II: Transparency of Public Finances

How to Build Cash Management Capacity in Fragile States and Low-Income Developing Countries

This IMF “How to Note” sets out the key objectives and building blocks of an efficient cash management function in fragile states and low-income developing countries. It suggests several measures to progressively build cash management capacity in three interrelated areas: consolidating cash resources, forecasting cash flows, and managing cash balances with sound institutional arrangements.

Could be of interest to those using country examples and working on

Pillar IV: Policy based fiscal strategy and budgeting

Pillar V: Predictability and control in budget execution

Public Financial Management and Google Maps – IMF Blog

This IMF blog states that a comprehensive PFM system enables leaders to make better informed decisions and allows their actions to be measured and judged by the broader public - politicians, the media, NGOs, and individual citizens. The accounting system that supports the management of common resources could be used in the same way that a traveler might use a GPS navigation system when planning and making a journey.

Could be of interest to those working on

Pillar V: Predictability and control in budget execution

Pillar VI: Accounting and Reporting

Benefits of Accrual Accounting in the Public Sector

This WB paper focuses on the application of accrual accounting in public sector entities, as compared to cash-based accounting and reporting. The objective of the study is to illustrate the potential benefits – but also the costs – of implementing of accrual accounting both for internal and external users in terms of decision-making, accountability, and transparency. It points to the enabling conditions needed for successful introduction of accrual accounting, as well as to the related challenges and costs.

Could be of interest to those working on

Pillar V: Predictability and control in budget execution

Pillar VI: Accounting and Reporting

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