PUBLIC FINANCIAL ACCOUNTABILITY – MULTI STAKEHOLDER APPROACHES

1. PUBLIC FINANCIAL ACCOUNTABILITY – MULTI STAKEHOLDER APPROACHES PRESENTED BY ISMAILA B CEESAY LEAD FINANCIAL MANAGEMENT SPECIALIST AND PUBLIC FINANCIAL AMANGEMENT PROGRAM LEADER – AFRRICA REGION – THE WORLD BANK

2. INTRODUCTION • Public Financial Accountability encompasses the entire accountability cycle from budgetary planning, budget execution (including accounting, reporting, procurement, internal control and reporting) to independent assurances (external audit) and external oversight (legislature and the non-state actors). The sustained effectiveness in the delivery of one or the other in the cycle impacts the effectiveness and efficiency in which the other is executed.

3. OBJECTIVE OF PUBLIC FINANCIAL ACCOUNTABILITY • maintaining fiscaldiscipline - preventing over spending and over borrowing   • promoting strategic priorities - ensuring there are sufficient resources to achieve the government's priority objectives and • delivering value for money - making sure resources are used efficiently and effectiveness and with economy

4. KEY FOCUS AREA -DELIVERY VALUE FOR MONEY Dependencies: • Legal framework • Public Investment Planning & Programming • Budget Credibility • Performance Benchmarks • Reporting framework • Feedback • Oversight: Action or Inaction - Impunity

5. PEFA Scores (Average) 3.00 2.78 2.66 2.63 2.43 2.50 2.28 2.20 2.00 2.00 1.50 1.00 0.50 0.00 AFR AFR 2011 EAP ECA LAC MENA SAR 2008 WHAT HAS BEEN AFRICA’S PERFORMANCE VIS-AVIS THE REST OF THE WORLD?

6. PEFA Ratings 2011 3.00 2.50 2.00 1.50 AFR 2011 1.00 AFR 2008 0.50 0.00 PERFORMANCE OF PFA ELEMENTS

7. NEED FOR GREATER STAKEHOLDER DIALOGUE AND COLLABORATION • Role of the executive • Role of the SAI • Role of Parliamentary Scrutiny • Role of NSAs • Role of Citizens • Donor Partners Capacity of different actors, the accountability framework, and the strength of dynamism of each, are key to viable outcomes.

8. KEY OVERSIGHT CHALLENGES • Gap between approved budgets and the realization of policy intents • Technical Capacity and ability to influence political outcomes • Implementation and follow up on audit and PAC recommendations [Westminster model]. • Difficulties in monitoring overall economy, efficiency, and effectiveness of expenditure [Judicial/Napoleonic model] • Relatively weak communication and non-involvement of other stakeholders [Courts model] • Opening PAC hearings to the public

9. DIFERING ROLES OF STAKEHOLDERS • Legislature to give political support to audit recommendations – dependent on accountability framework • Donors too have a role to play (DA>$1B) and over $15m commitments in Africa for oversight by WB in 2011 – Development Policy Operations • Non State Actors can leverage the process – effectiveness conditioned on governance • Stronger partnership (SAIs, PACs, NSAs) a must • Regional coalitions can facilitate change

10. AUDIT FINDINGS & RECOMMENDATIONS • Financial audits • Compliance audits • Performance /valued for money audits • Specialized audits • If the SAI submits reports to the legislature and these are not read, understood, and acted upon, the system breaks down. • Partnership therefore calls for comprehensibility of audit findings • Stale audit reports

11. HOW PACs CAN SUPPORT SAIs’ WORK • Regularly follow up on implementation progress: it is not necessary to wait for subsequent audit reports before calling a department back to report on the implementation of audit findings • Making such follow-up meetings open to the media and the public: this will publicize progress on the audit recommendations and create further pressure for implementation • Limiting the time that the executive has to implement audit findings: when an audit finding is particularly negative, the PAC could insist that corrective action be taken in a specific timeframe. • Rules of procedure: Amend rules to cater to the above.

12. WB SUPPORT TO PARLIAMENTARY OVERSIGHT • Parliaments have three main responsibilities: • Oversight • Representation • Legislation Over $ 60 million has been provided for capacity building of Parliaments in Africa. These operations had substantial equipment and infrastructural components. • Average duration was for 2.5 years, and several projects were for 5 years.

13. Supporting parliamentary Oversight