David Gray, PFM Working Group Chair January 2007 LCG Governance Progress in PFM 1 Palace Street, London SW1E 5HE Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA

Page 1 1 Palace Street, London SW1E 5HE Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA Structure of PFM Reform DP activities DP Activities: WB, ADB, JICA, CIDA, et al LCG PFM Working Group DPs PFM Task Team FMRP activities

Page 2 LCG PFM Working Group Donors with an interest in PFM reform Primary objective: harmonisation Membership:

Page 3 LCG PFM Working Group Continuing update on PFM activities Donors courted and fund activities Last met June 2006, next due Jan/Feb 2007

Page 4 Annex A – 13 Donor funded activities related to PFM DFID’s FMRP tackling MoF overall PFM, IT infrastructure, accounting, budgeting, capacity building and C&AG; WB’s Asset Management and Accounting System to be piloted in the HNPSP programme and the Institute of Public Health; WB’s and Japan’s proposed support to Union Parishads through block grant and related control activities: community influence, C&AG audit, capacity building in accounting; WB’s English Language Training for Foreign Aided Projects Audit Directorate; WB’s support to the Institute of Chartered Accountants of Bangladesh to help hem work with GoB for the adoption and implementation of public sector standards whenever these are issued by the IFAC Public Sector Committee; CIDA’s support to C&AG; CIDA’s project in Ministry of Water Resources which includes modernisation of FM systems including the development of an IFMIS ADB’s support to Railways in developing IFMIS; WB’s researching policy and instructional issues in public financial management through a series of Public Expenditure Reviews and Financial Accountability Assessments. JBIC’s support to Chittagong WASA developing an IFMIS with accrual accounting and then drafting accounting standards; Norwegian Aid’s support to ERD to computerise system for donor loans; Planned support for accounting and auditing in local government by the UNDP, WB and EC. Danida’s study tour for C&AG.

Page 5 Donor Partners PFM Task Team Primary objectives: Support the development of a PFM strategy Develop a package of support for 5 years Membership: CIDA, DFID, EC, RNE, WB

Page 6 Donor Partners PFM Task Team Project Identification Mission (Jointly resourced): Develop GoB Action Plan for PFM Reform Prioritised, sequenced and costed Decision about funding PFM programme Due December 2006, likely March 2007 Current outputs: Likely absorption of TA some £26 – 35m DFID have budgeted £30m in pipeline Justification involvement of many donors?

Page 7 Issues Need to get MoF lead

Page 8 Issues Need to get MoF lead Approach to FM deepening in ministries

Page 9 Issues Need to bridge to PFM Reform Programme Need to get MoF lead Approach to FM deepening in ministries

Page 10 Issues Need to bridge to PFM Reform Programme Need to maintain momentum Need to get MoF lead Approach to FM deepening in ministries

Page 11 Issues Need to bridge to PFM Reform Programme Need to maintain momentum Reduce bridge if possible Need to get MoF lead Approach to FM deepening in ministries

Page 12 DFID Activity PFM Impact Assessment Mission Building lessons learned into PIM GoB to tackle PE issues?

Page 13 FMRP Activity MTBF Roll out Ministrywise accounting and auditing Working with Planning Commission Computerising and WAN