Financial management reform project

The project will provide technical assistance, training, and commodities to help establish an Integrated Financial Management System (IFMS) and a Comprehensive Audit System (CAS). The development of the IFMS will begin with the establishment of four subsystems: (1) a budget subsystem to produce financial plans and facilitate control over public expenditures; (2) a treasury subsystem to manage the government"s cash assets through projection and monitoring of cash flows, and receipt and control of revenues, and processing of disbursements; (3) a debt subsystem to manage the acquisition, servicing, and retirement of public debt; and (4) an accounting subsystem to record and report on all government financial transactions. These four essential subsystems will be the foundation for an IFMS which will eventually extend throughout the public sector; other subsystems -- for tax administration, acquisition and supply management, social security management, etc. -- may be added later, in building block fashion. The IFMS will be complemented by the development of a CAS to help assure the reliability of all government financial management operations. The audit process is not a subsystem because it will have a governing body that provides independent and professional audits of other government institutions. Overall supervision of the CAS will be the responsibility of Office of the Auditor General (AG), which will become an independent office. Project advisors will assist in developing the legislation. policies, and regulations needed for the above systems, will prepare operations manuals, and will also help to institutionalize these systems within the government. Extensive training will be provided for staff of the Office of the Controller General, the Ministry of Planning and Economic Policy, and the Ministry of Finance and Treasury.