Title: Country Financial Accountability Assessments
1 Country Financial Accountability Assessments
Paul Bermingham Head, Financial Management
Sector Board June 22, 2001
2Overview
- What is a CFAA?
- Strategic Context Where Does it Fit?
- What is a CFAA used for?
- Future Directions
3 4What is a CFAA?
- Diagnostic tool designed to enhance the Banks
knowledge of financial accountability
arrangements in client countries - Supports both
- the exercise of fiduciary responsibilities by
helping to identify risks to the use of Bank
funds - the Banks development objectives by facilitating
the design and implementation of capacity
building programs - Together with the PER and CPAR, emerging as a key
underpinning for country assistance strategies
and programmatic lending
5Scope and Content of CFAA
- Public sector budgeting
- Public sector accounting and financial reporting
- Public sector internal control system and records
management - Public sector auditing
- Legislative scrutiny of the management of public
finances - Private sector financial accounting and auditing
practices - Corporate governance
- Public access to information on public finances
- Non-governmental and community-based organizations
6Number of CFAAs Done
Under Discussion
Completed
Underway
- Argentina
- Armenia
- Bangladesh
- Bhutan
- Bolivia
- Brazil
- Colombia
- Croatia
- Egypt
- Ghana
- Indonesia
- Jamaica
- Jordan
- Kazakhstan
- Korea
- Latvia
- Maldives
- Moldova
- Mozambique
- Nigeria
- Papua New Guinea
- Poland
- Slovakia
- South Africa
- Turkey
- Uganda
- Viet Nam
- Yemen
- Algeria
- Armenia
- Benin
- Bhutan
- Bosnia-Herz
- Chad
- India
- Mexico
- OECS countries
- Pakistan
- Panama
- Peru
- Romania
- Russia
- Ukraine
- Burkina Faso
- Cameroon
- Dominican Republic
- Ethiopia
- Laos
- Madagascar
- Malawi
- Mozambique
- Philippines
- South Africa
- Tanzania
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7- Strategic Context
- Where Does it Fit?
8Strategic Context
- Country development business model
- PRSP, CAS, diagnostic work, programmatic support,
CDF - Greater realization of the importance of
institutions - Shifting Bank resource transfer patterns
- Adjustment lending, debt relief, sector programs
- Fiduciary assessments in CASs
- (MIC Paper, April 2001)
- Fiduciary assessments as an underpinning for
PRSCs - (PRSC guidelines, May 2001)
9Relationship to Bank product lines
Bank activity
- Global products and partnerships
Standards
10Relationship to Bank product lines
Bank activity
- Global products and partnerships
- Diagnostic ESW work
Standards
Assessment
11Relationship to Bank product lines
Bank activity
- Global products and partnerships
- Diagnostic ESW work
- CAS, lending operations, advice
Standards
Assessment
Response
12Public Expenditure and ESW Products
Budget
Policy
Preparation
Execution
Reporting
Oversight
13Public Expenditure and ESW Products
Budget
Policy
Preparation
Execution
Reporting
Oversight
PER
14Public Expenditure and ESW Products
Budget
Policy
Preparation
Execution
Reporting
Oversight
PER
CPAR
15Public Expenditure and ESW Products
Budget
Policy
Preparation
Execution
Reporting
Oversight
PER
CPAR
CFAA
16Public Expenditure and ESW Products
Budget
Policy
Preparation
Execution
Reporting
Oversight
PER
CPAR
CFAA
Fiduciary Assessment
17Sources of Information
World Bank
Other
- CFAA
- Procurement reviews
- Public expenditure reviews
- Institutional and governance reviews
- CPIA ratings
- Bank portfolio performance information
- IMF Fiscal transparency reports
- IMF Safeguards assessments
- IMF Red cover reports
- MDB and other donor diagnostic products
- SAI reports
- Other official oversight agencies in client
countries - International organizations
18 19Uses of a CFAA
- Facilitate dialogue with borrowers and partners
on financial accountability matters - An input to the design of the Banks overall
country assistance strategy (CAS) - Underpins Bank advice and lending to strengthen
country financial accountability - Reference point in assessing financial management
arrangements in individual projects - Support fiduciary risk management strategy (e.g.,
staffing, mitigation measures)
20 21CFAA - Future Directions
- Increased country coverage
- Better integration with other diagnostic tools,
especially PERs and CPARs - Enhanced linkage to borrower development
strategies and Bank programs - Increasingly carried out with development
partners - Emerging as a priority area for collaboration in
financial management harmonization process - Enhanced quality
- Likely to focus more on public sector, as private
sector issues addressed by ROSC assessments of
accounting and auditing