PUBLIC SECTOR FINANCIAL MANAGEMENT REFORM: THE

Transcript:PUBLIC SECTOR FINANCIAL MANAGEMENT REFORM: THE:
PUBLIC SECTOR FINANCIAL MANAGEMENT REFORM: THE ECOWAS EXPERIENCE BACKGROUND For over three decades, developing and developed countries have been undertaking Public Sector Financial Management Reforms. These reforms are critical because the Public sector is the pivot on which economies grow. The public sector is also the main tool available to governments for the implementation of their developmental goals and objectives. The public sector oversees the creation of conducive environments for all the other sectors to function. It is therefore imperative that best financial management practices are adopted in the Public Sector to ensure the smooth operation of all other sectors dependent on the public sector. It is important to point out that Public Sector Financial Management reforms are effective in the following instances: When there is a strong commitment from the leadership to their being implemented Where the Public Sector Financial Management reforms strategy and the processes involved in their implementation have been customized to the specific institution Where there have been strong efforts to lead, oversee and direct the reforms by the leadership. The aforementioned have been at the core of the advancements made in the Public Sector Financial Management reforms in ECOWAS. THE ECOWAS JOURNEY SO FAR To commence the reforms, an assessment on the compliance level of ECOWAS with international standards on financial and administrative management was done. Subsequently, weaknesses in the ECOWAS rules and procedure and the areas where there was lack of compliance were identified. To improve on these deficiencies, the management at ECOWAS embarked on Public Sector Financial Reforms with support from the European Union. The implementation in ECOWAS consists of five main components; Finance, Human Resources, Procurement, Audit Assurance and Internal Controls. COMPONENT 1: FINANCE FINANCE Comprising of: Formal and on the job training on ECOWAS internal control framework Internal control assessment templates for payroll, time management and related expenditures and allowances. Results based budgeting and reporting Compliant periodic and annual budgets FINANCE CONTD’ Production of IPSAS compliant Financial Statements IPSAS compliant financial policies defined and implemented IPSAS compliant Financial Statements and Annual Reports issued and provided to stakeholders FINANCE CONT’D Deployment of ECOWAS Internal Control Framework within the new Office of the Auditor General Monitoring process on Internal Control recommendations Updated Financial Regulations and Manual of Financial Management procedures. FINANCE CONTD’ ECOLink Phase II Internal control design reflected in ECOLink Phase II blueprint compliant with EU Pillar assessment requirements Fixed Assets Management