Final report : development administration project, contract no. 522-0174-C-00-3016-00, technical assistance to the Ministry of Finance and Public Credit of the Government of Honduras

The project, a pilot effort in the Ministry of Finance (MOF), incorporated 8 separate administrative improvement projects, which required some 128.5 person months of TA from long- and short-term specialists. Important fiscal reforms were implemented in treasury administration, computer utilization, revenue administration, government procurement, franchises and exemptions, integrated accounting, and Directorate of General Taxation records administration. Some 400 GOH employees were trained to ensure adequate technology transfer from the consulting team staff. The project"s implementation period came just prior to national elections, adversely affecting prospects for administrative changes within the GOH. Implementation was also impeded by GOH budgetary constraints and the rapid turnover of GOH personnel. The MOF resisted the implementation of some activities, such as a GOH-wide bonding system to cover employees authorizing or handling GOH funds or documents; a final decision is pending. Until the GOH acquires at least 1 year"s experience handling the bonding system, a proposed GOH self-insurance trust fund cannot be implemented. Effort should also be made to complete activities in integrated accounting and government procurement. Several lessons were learned. (1) Projects should be planned immediately after a newly elected government takes office to allow sufficient time to design and implement administrative changes before the end of its term. (2) Counterpart funds should be earmarked as an appropriation in the government budget to assure prompt implementation of recommendations and avoid delays. (3) The GOH should make a serious effort to overcome turnover of personnel directly related to project development. (4) The assisted agency should appoint a technical coordinator, his/her primary responsibilities being project activities. Recommendations for an expanded project are included.