1. The role of the Passport Indicators in Monitoring PFM Strategy
PEMPAL-TCOP Plenary meeting:
“Aspects of KPIs in the government liquid position”
15-17 th May, 2018
Mrs. Vanina JAKUPI
Director
Managing the Reforms
in the Public Finance Management

2. Introduction on PFM Reform
The Albanian Ministry of Finance adopted a comprehensive public finance management reform strategy for , by the Council of Ministers Decision in October 2014.
The vision of the PFM reform strategy is to ensure a public finance system that promotes transparency, accountability, fiscal discipline and efficiency in the management and use of public resources for improved service delivery and economic development.
This document has a double significance, not only sets the path for maintenance the public finances in the trajectory of long-term stability, creating the prerequisites for economic growth, but also constitutes an obligation under agreements with international partners, in particular with World Bank, International Monetary Fund and European Union.
The importance of reforms in Public Financial Management lies in creating an enabling environment for achieving various objectives such as poverty reduction, economic growth, accession to the European Union.

3. PFM Strategy 2014-2020 PILLARS Well integrated and efficient
Sustainable and prudent
fiscal framework
Well integrated and efficient
planning of public expenditure
Improvement and increase
in transparency of Government
Financial Reporting
Efficient execution
of the Budget
PILLARS
Strengthening internal
control in the public sector
Effective oversight
of public finances

4. PFM Monitoring Process (1/2)
To provide a clear monitoring and reporting process it was adopted Concept Monitoring Note (CMN), in March 2017.
This tool aims to inform the participants of their responsibilities and to allow them to get ready for respective commitments according: the procedures to complete monitoring and reporting (WHAT), the responsible institutions (units) for completion of procedures (WHO) and the time to complete these procedures (WHEN). CMN consists in:
The Instruction for monitoring and reporting (including reporting templates and guidelines);
The structure of the annual reports.

5. PFM Monitoring Process (2/2)
The tools through PFM implementation is monitored, are:
Monitoring reports:
Annual monitoring report, which covers the period from January to December for each year (external use)
Semi-annual monitoring report, covers the period from January to June (only for internal use).
PFM Action Plan (AP), adopted in December 2014 and updated AP (march 2016) and Updated AP (march 2017)
Passport Indicators (PI):
PI, important tool prepared by SIGMA and approved in October 2016, used for the first time in ‘PFM Annual Report of 2016’, based on performance indicator and objectives achievements.
Updated Passport Indicators, approved in 5th SC, (in March 2017), to reflect some methodological changes.

6. PFM Monitoring Arrangements

7. PFM Monitoring Arrangements
Steering Committee - Meets at least twice per year
Technical Committee - Meets at least twice per year
DR PFM - Day to day monitoring

8. Passport Indicators
The purpose of Passport Indicators is to provide the detailed methodological description of measurement for all Output-level indicators that are included into the Public Finance Management Strategy of Albania. It provides transparency regarding how the Government provides information on achievements within the objectives.
PIs includes only the results of indicators (results measured against objectives) related to annual monitoring / reporting:
Basic data (when available) as well as expected intentions
The accurate measurement method of the indicator
Institutions responsible for collecting data (and in some cases for determining the indicator value)
Time of reporting, frequency of data collection

9. Two levels of indicators Each objective Indicators 36 indicators
PFM Strategy Indicators
Two levels of indicators
General PFM indicators 14 indicators
Each objective Indicators indicators

10. The drafting process
It was ensured that a Accurate Methodology was developed for each indicator: data validity is the most important point.
All stakeholders agreed on what needs to be done to ensure a systematic process of data collection, including:
Time limits
Possible needs for additional resources / funding
Understand and determine how often data on indicators will be provided / reported (semi-annually or annually)

11. PI was approved on October 2016, by the PFM Steering Committee
The drafting process
Until
27 May 2016
The final list of indicators was agreed.
The format for each indicator was developed.
30 June 2016
With each structure was worked individually for determining the exact methodology of measuring indicators, the definition of basic data,
End of July 2016
Review all passports indicators (comments, clarifications, improvements in methodology)
Until 20 October 2016
All passports of indicators were revised
from SIGMA and EC Structures
PI was approved on October 2016, by the PFM Steering Committee

12. Passport Indicators
2.2.3 Title of Indicator
Annual publication of actual disbursements for major investment projects compared to planned disbursements, along with explanation of variations
The corresponding general or specific objective
Strengthened processes and institutional capacity for initiating, appraising, prioritizing and approving capital investment projects
Source of data for monitoring of performance indicator
Annual Budget Law , Annual Budget Executive Report
Institution responsible for gathering data
GD Budget Planning-MoF
Frequency of data publication
Annual
A brief description of the methodology
This indicator will measure the spending performance of the public investment projects.
The Ratio of annual disbursement of budget for public investment projects ( RIPD) will be measured as the ratio between the total amount planned in the Annual Budget for investment projects above the 7 million ALL,( or 5 mln EUR), versus the total amount of budget allocated in a given year for implementation of respective projects.
RIPD =
Information on baseline values
Year
2015
Baseline value
95%
Information on target values
2017
2020
Indicator value
97%
98%

13. The importance of reporting Indicators
Achieving Objectives
Achieving the Politics Purpose in a Specific Field
Objective 1
Objective 2
Indicator 1
Indicator 2
Indicator N
The aim of the strategy
Indicators Levels
Final Purpose of PFM Reform
All Indicatos

14. The first PFM Annual Report based on PIs
Focus on achieving the objectives: The level of achievement of each indicator in 2016 makes it possible to assess the progress made towards achieving the final goal
Information on the main achievements during Not what has been done in terms of performing the activities - but what has been the effect and impact it has brought in implementing the reform undertaken in each particular area, and the positive results that PFM implementation has produced in good governance of public finances.

19. Thank You FOR YOUR ATTENTION!
Mrs. Vanina JAKUPI
www: financa.gov.al