public financial management and audit in mozambique
DESCRIPTION
From May 2008 ICGFM Conference,TRANSCRIPT
1
REPUBLIC OF REPUBLIC OF MOMOZZAMBIQUEAMBIQUE
MozambiqMozambiqueue
2
Republic of Republic of MozambiqueMozambique
Population - 19 milion Civil Servants – 160 Thousand Public Internal Auditors - 450
3
PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SISTAFESISTAFE
LAW 9/2002 – 12 FebruaryLAW 9/2002 – 12 FebruaryEstablished 5 Public Financial Established 5 Public Financial Management SubsystemsManagement SubsystemsLAW 23/04 - 20 AugustLAW 23/04 - 20 August Approved the Public Financial Approved the Public Financial Management RuleManagement RuleUTRAFEUTRAFE –Coordenator Institution of the –Coordenator Institution of the PFM ReformsPFM Reforms
4
PUBLIC FINANCIAL MANAGEMENT SISTAFEPUBLIC FINANCIAL MANAGEMENT SISTAFE
Treasury Subsystem
Budget Subsystem
State PatrimonySubsystem
Public Accountability Subsystem
Internal Audit Subsystem
5
INTERNAL AUDITINTERNAL AUDIT
Domains :
• Budgetary
• Economic
• Financial
• Patrimony
6
Internal Audit Subsystem - CompositionInternal Audit Subsystem - Composition
General Inspection of Finance and General Inspection of State Administration
Sectorial General Inspections
Central, Regional and Provincial Audit Institutions
7
ActingActing
• Operational level
• Sectorial level
• Stratégic level
8
CoordenationCoordenationCoordenated Acting between institutions of control regard planning, realization and evaluation of the activities.
Rational and coherent working
Suficiency – eliminate uncovered areas e resulted controls
Complementarity – respect the level and the atribuited area of each institution and accordance of borders, criteria and methodologies.
Importance – take in account risk evaluation and materiality of the situations.
9
FrameFrame
GOV.(MPF)
IAS
COORDENATOR COUNCIL
Strategic LevelIAEIGF
Financial control of Public revenue and expensesSectorial Level
General Inspections of all Ministries and Regional Inspections
Control the activities of the 1st level institutions
Operational LevelInternal AuditingInternal Controls
Procedures
10
General ObligationsGeneral ObligationsThe Institutions Shall:
Give all requested information to the Coordenator Council
Respect the recomendations
Support the Coordenator Council
11
Special ObligationsSpecial Obligations
Strategic and sectorial controls shall:
Prepare activity plans and reports according to the CC recomendations
Send to the C.C. Annual Activity Reports and plans
12
Administrative CourtAdministrative Court
Attend the CC sessions, preparation of the plan and annual reports as observer
13
Achievements since the creation of the Achievements since the creation of the SubsystemSubsystem
Elaboration of the “ White Book” for the IASubsystem (Diagnosis)
Elaboration of IAS`s Strategic Plan for 2005-2009
CC bylaws
14
Achievements since the creation of the Achievements since the creation of the SubsystemSubsystem
Perfomance Audit in Pharmaceutical Sector, Streets and Water- Justice Sector is ongoing
Integrated Audit
Conjoined Audits:
• Procurement Process
• Financial and administrative evaluation of 39 districts
• Auditing 50% of the districts (2008)
• Internal Auditors Training
15
ConstraintsConstraints Lack of Public Auditor Bylaw
Changes Resistance
Insufficient quality and number of HR’s
Fragility of the Internal Audit Institutions, debilitate the principle of complementarity
Insufficient financial Resources
Technician Mobilility
Incompatible wages
Different development stages
16
ChallengesChallenges
High Interaction with external audit
Risk Management
Increasing the covered budget
Transversal Actions and their impact
Quality training for internal auditors
17
InitiativesInitiatives
Auditing Basic Manual
To Facilitate Sharing of Knowledgement
Partnership within other countries
Annual Conference of Internal Audit
Certification of Internal Audit profession
18
Budget SubsystemBudget Subsystem
Programmed and elaborated by the Module of Budgetary Programme
19
Public Accountability SubsystemPublic Accountability Subsystem This System has been computerized and integrated with the
other systems
There is a Budgetary Execution Module in all Minitries, provinces and 38 of 146 districts of the country.
The system gives:
Quaterly reports about the execution of the budget
Government Financial Statements
The 2007 Government Financial Statements has been elaborated based on the system information.
20
Public Accountability SubsystemPublic Accountability Subsystem Unique account managed by the treasury
Payments are directly, although some are still made by advanced funds.
Law 54/2005 – regulate the procurement process in the country was approved
Acquisition unitiy management (UGEA´s) were established under the law 54/2005.
UGEA´s members are ongoing training.
21
Thank you for you
attention