Fiscal Policy and Expenditure Management Program (FPEMP) Quarterly Report March 2014 – May 2014

The program is sponsored by the United States Agency for International Development (USAID) and implemented by Development Alternatives Inc. (DAI). The program's main counterpart is the Ministry of Finance (MOF) of El Salvador. The program has three main components: Component A, Enhanced Public Expenditure Management; Component B, Improved Revenue Mobilization; and Component C, Strengthened Private Sector Engagement. The program's goals are to build a modern and transparent public expenditure system, strengthen tax policy and administration, improve revenue collection, and facilitate private sector outreach. During the period from March 1, 2014 to May 31, 2014, FPEMP achieved several key results. In Component A, the program supported the development of the National Financial Management System (SAFI) II, including the definition of the system development strategy and the use cases design for the accounting subsystem, treasury subsystem, and budget execution module. The program also reviewed and gained approval of the chart of accounts under International Public Sector Accounting Standards (IPSAS) and began the development of the IPSAS adoption technical implementation plan. In Component B, the program supported the development of the Case Selection Management System (CSMS) II, including the deployment of the "Fedatarios", "Punto Fijo", and "Gestion de Cartera" modules. The program also developed the selective audit module and supported the review and validation of the Human Resources System (SIRH) use cases. In Component C, the program supported the implementation of the Budget General Directorate (DGP) functional administrative reform and the development of the e-Procurement System (COMPRASAL) II, including the completion of the Procurement and Contracts Annual Programing (PAAC) module. The program also initiated the design of the use cases of the "Libre Gestion" module. FPEMP also supported the implementation of the Treasury Single Account (TSA) and the Taxpayer Registration System (TRS). The program also developed the white paper on fiscal sustainability for El Salvador and presented recommendations on fiscal sustainability to the government. Overall, FPEMP has made significant progress in modernizing and improving fiscal policy and expenditure management in El Salvador. The program's achievements are expected to contribute to the country's economic development and improve the lives of its citizens.