1. PFM Council Secretariat
Human Development Support Program HDSP-1( ) European Union TECHNICAL COMMITTEE-1
FINANCING AGREEMENT
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2. The reports include more than10 financial ratios;
Condition 1.1 The SOE reporting regime is established and the MoF’s Department for Monitoring Financial-Economic Activities of Large State-Owned Enterprises submits reports on large SOEs to the Government that include analysis of their financial and non-financial performance;
At the moment SOE Monit. Dpt. submits quarterly reports of 16 large SOEs to the GoT.
The reports include more than10 financial ratios;
The reports are submitted to the GoT in a timely manner;
The last report for 9-months 2011 (49p.) has been submitted
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3. No fiscal risk assessment (FRA) reports were produced before;
Condition1.2 Fiscal risk assessment reports are submitted to the parliament as a part of the Draft Budget Statement;
No fiscal risk assessment (FRA) reports were produced before;
The work on the FRA report is currently going on;
The MoF forwarded a request to the IMF for a TA (№14-93 от ), and received a positive reply from the IMF (as of ).
PROBLEMS:
Conducting training/seminars on this subject is a necessity;
The SOE Monit.Dpt. staff lacks capacity/experience in producing such reports;
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4. The level/capacity of the MoF is not sufficient to fulfill the task;
Condition 1.3 Amendments in the institutional and legal framework for monitoring of the SOEs' performance developed. Action Plan for their introduction and further expanding of the SOE's performance monitoring developed and approved by the Government.
It is planned to hold a joint meeting with the Tax Committee and State Committee for Investments and Management of State Property (SCIMSP) for addressing the issue of amendments to institutional and legal frameworks
PROBLEMS:
The level/capacity of the MoF is not sufficient to fulfill the task;
The development of the Action plan requires prior studying of existing institutional and legal frameworks;
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5. The 16 large SOEs have adopted the IFRS;
Condition 1.4 The SOEs, including government unitary enterprises, implemented financial reporting according to IFRS requirements in compliance with legislation of the Republic of Tajikistan;
The 16 large SOEs have adopted the IFRS;
The financial reporting of the 16 SOE meets the IFRS requirements;
The rest of SOEs will adopt the IFRS in compliance with the Law on Accounting and Financial Accountability (#702 from 25/03/2011);
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6. 5 out of 16 SOEs underwent an external audit in 2011; PROBLEM:
Condition 1.5 Large SOEs are subject to annual external audits according to the adopted auditing standards.
The MoF sent a letter (№14/04 of ) on mandatory external auditing to all 16 SOEs;
5 out of 16 SOEs underwent an external audit in 2011;
PROBLEM:
The SOEs believe that regular inspections run by the Agency on State Financial Control and Fighting Corruption and the Tax Committee currently carried out are sufficient;
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7. The 5-year Treasury Development Plan has been approved by all donors;
Condition 2.1 Concept design and procedures for establishment of the full Treasury Single Account (TSA);
The PFM Council has approved the 5-year Treasury Development Plan that foresees the full introduction of TSA;
The 5-year Treasury Development Plan has been approved by all donors;
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8. Condition 2.2 Implement a pilot of the TSA system at the republican level;
1. The plan “on transition of finance departments of the RT to TSA” has been developed;
2. The piloting of TSA in all 5 finance departments of Dushanbe city and Tursunzade town is completed. The MoF’s order on closing transit accounts for another 22 rayon finance departments is signed;
At the moment, 9 finance departments have fully adopted TSA of republican level;
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9. Condition 2.3. Implement the full TSA system at the republican level;
1. It is expected that the TSA republican level will be introduced in 35 finance departments before the end 2011; 2. Before the end of March 2012 the TSA republican level will be introduced in all finance departments of the RT;
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10. Condition 2.4. Progress in the implementation of the TSA system at the local level;
At the moment the full TSA has been introduced in 5 finance departments of Dushanbe city (local budget);
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11. Condition 2.5. Enhanced commitment control and cash management system
1. In accordance with the 5-year Treasury Development Plan, in 2012 the Central Treasury will be reorganized with establishing commitment control and cash management departments; 2. The system of commitment control will be introduced during period; 3. The system of cash management will be introduced during period;
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12. Condition 3.1 Consistency between the UCOA and International Public Sector Accounting Standards (IPSAS) is ensured;
The Unified Chart of Accounts (UCOA) has been developed in compliance with the IPSAS requirements;
The Instruction on application of the UCOA includes all provisions for meeting the IPSAS requirements;
The MoF is establishing contact with the IPSAS Board and keeps consulting to ensure the compliance of the UCOA with IPSAS;
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13. Condition 3.2 Consistency between the UCOA and the revised budget classification is ensured
The Concept of UCOA includes provisions for its alignment with the economic segment of budget classification, that complies with the GFS2001 requirements;
The draft of economic segment of budget classification is completed and is being considered for its subsequent approval;
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14. Condition 3.3 State budget is formulated on the basis of revised budget classification;
The process of revision of the budget classification is nearing its completion;
Technical assistance/ donors for drafting a Program classification are not specified;
At the moment the budget of republican level is formulated on the basis of the new administrative classification;
The administrative classification of local level has been adopted in May 2011;
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15. Conclusion
Results 2 and 3 are on track, whereas result 1 came across setbacks:
The TA for the result 1 has not been provided timely, which entails adjusting the deadlines of fulfillment of the conditions.
There is a need to clarify the EC future plans for TA in the PFM sector;
In the absence of TA support in the future, there is a need to develop an alternative option;
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