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ODA component of the ENE

Explore challenges in ODA reporting and solutions to enhance transparency and accuracy for effective international development cooperation in South Africa.

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ODA component of the ENE

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  1. ODA component of the ENE 2007 ENE Guidelines and Information Session 15 November 2006 National Treasury

  2. Overview • Background • ODA Definition • Challenges • Examples • Possible Solutions

  3. Background • International Development Standards require ODA reporting by recipient Governments • Transparency, Accountability, Quality of PFM systems • Reporting systems include: • ENE, AG reports, Official Databases (DCIS), etc.

  4. Background • Departments report on approximately 54% of ODA received in the ENE • This was confirmed officially in 2006: • Baseline Study • Paris Declaration Monitoring of ODA to SA • DCIS • Important to improve on reporting of ODA in ENE, as this is the official PFM consolidated source for reporting of ODA

  5. Definition • ODA - Official resource flows from the international community to South Africa in the form of grants, technical co-operation and financial co-operation, where the South African Government is held at least partially responsible or accountable for the management of such resources • ODA: • Cash • In kind • Grants • Services • Products • Loans • Donors - Foreign official (as opposed to private) agencies, including states and international organisations that provide ODA to South Africa

  6. Challenges: Under Reporting & Incorrect Reporting • Project expenditure not clearly distinguished from “normal” program expenses • Definitions of ODA and ODA types not in line with official definitions • Interpretations of definitions differs from department to department • Varying exchange rate of funds used for projects requires a consistent approach on conversion to ZAR • Duration of projects and of annual plans does not dovetail with government financial years • ODA does not flow through our PFMS

  7. ENE SCHEDULES: ODA REPORTING EXAMPLES Department A • Private companies such as Glaxo Kline Smith, Discovery and Markinor is mixed with ODA Department B • Consistent projected spending is shown over the duration of the project - not accurate reflection of how a project unfolds

  8. Department B cont. • Project concluded in 2004/03/15 yet expenditure is shown of 25 million in 2004/05 fin year (Roll over, extension?) Department C DFID and USAID information not shown at all in the ENE

  9. Possible improvements • Clear distinction between departmental and ODA expenditure in BAS • Link project annual plans/budgets with project expenditure within the departmental program that it fits in. • Consistent definitions of ODA applied across the board • Utilise ODA Coordinators in Departments • Require notice of Agreements and budget breakdowns, regular progress reports, meet with donors and compare data • Make distinction between Official Donors (agencies providing tax monies) and private sector funds (including NGO's) • Consistent naming conventions for donors must be used e.g. is DFID and UK are used interchangeably.

  10. Thank YOU Contact persons: Shaheed Rajie / Elaine Venter / Denise Marais International Development Cooperation National Treasury www.dcis.gov.za Tel: 012 315 5528 / 315 5968/9

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