115.48accountsuspended

2013InternationalMonetaryFundSeptember2013IMFCountryReportNo.
13/295September19,2013January29,2001January29,2001January29,2001January29,2001Mali:TechnicalAssistanceReportThistechnicalassistancereportonMaliwaspreparedbyastaffteamoftheInternationalMonetaryFundasbackgrounddocumentationfortheperiodicconsultationwiththemembercountry.
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INTERNATIONALMONETARYFUNDFiscalAffairsDepartmentMaliResumingimplementationoftheWAEMUharmonizedfiscalframeworkinapost-crisiscontextApril2013BenoitTaiclet,JeanBertrandBiguey,andClaudeTrupinINTERNATIONALMONETARYFUNDFiscalAffairsDepartmentMALIRESUMINGIMPLEMENTATIONOFTHEWAEMUHARMONIZEDFISCALFRAMEWORKINAPOST-CRISISCONTEXTBenoitTaiclet,JeanBertrandBiguey,andClaudeTrupinApril20133TableofContentsPageAbbreviations.
5Preface.
7SummaryofRecommendations.
8I.
Optimizecashresourcesinacrisiscontextandwithamedium-termoutlook10A.
Cashresourcebreakdownasaresultofthecrisis.
10B.
Intheshortterm,takestockofmobilizableresources.
13C.
Poolallgovernmentresourcesinthemediumterm.
14D.
AdapttheaccountingandfinancialarchitecturetooptimizetheTSA17E.
Starttoactivelymanagecashanddebt.
19II.
OrganizetheExpenditureChaintoControlDelaysandArrears.
20A.
Keepspendingwithinacontextofscarcityandrisk20B.
Monitoringpaymentsarrears25C.
Towardasmootherpaceforbudgetexecution26D.
Continuestreamliningtheexpenditurechain.
28E.
Improvetheexecutionofexpendituresbytype30III.
Paceofimplementationofpartiallyinterruptedreforms.
32A.
Quantitativetallyoftheimplementationof2011FADrecommendations.
32B.
Incompletedevelopmentofthelegislativeandregulatoryframework.
34C.
Holdinggroundinthereformoffiscalinstruments.
35D.
Slowimprovementsinfiscalreporting.
36E.
Poormanagementofautonomouspublicagencies38F.
Developmentofexpostcontrols.
39IV.
UpdatePAGAMGFPIIwithaviewtoresumingreforms41A.
CopingintheShort-termwithpitfallsfromthe2012crisis42B.
Revisingthe2011actionplantimetable42C.
Createcross-departmentdynamicsforanoticeableimpact.
43D.
Usethebudgetasleveragetoimprovepublicservices44E.
Aprogressivelymoreaccuratereflectionofthegovernment'sfiscalposition.
.
.
.
.
.
.
44F.
Introduceanewaccountabilityframework45G.
Projectreformsoverthemediumterm45H.
CoordinateTechnicalAssistance.
47Tables1.
Commercialbanks,potentialimpactofthetransferofgovernmentliquiditytotheTSA.
.
.
12Figures1.
GraduallypoolcashresourcesintheTSA.
152.
ProposedarchitectureofaccountsopenedwiththeBCEAO1743.
CashflowsandtheTSA194.
FY2012,MinistryofHealth,monthlyvolumesofpaymentvalidationandpayments.
.
.
.
.
.
.
245.
FY2012,MinistryofHealth,cumulativevolumesofpaymentvalidationsandpayments(CFAF)246.
FY2012,MinistryofHealth,Arrearsatmorethan90Days(CFAF)257.
AveragelagtimesnotedattheMinistryofHealth.
298.
Medium-termreformprojections.
46Boxes1.
ReconciliationofthenetTreasurypositionbetweentheDNTCPandBCEAO132.
Example,inFrance,ofcriteriadefiningagencies'inclusioninthecategoryof"governmentoperators"163.
Updatetheappendedcashplaninthebudgetlawforintra-yeartracking.
194.
FY2012215.
Monitoringofpaymentsarrearsfromthevalidationofinvoices266.
Quantitativeassessmentofimplementationofthe2011recommendations.
337.
RisingissuesintranscribingWAEMUdirectivesintonationallaw348.
Progressclearingaccountsfrom1992through2008.
399.
FADTechnicalAssistancefor2013–14.
47AnnexesI.
Mapofplannedtechnicalassistance48II.
ProposalforUpdatingPAGAMGFP2.
51III.
Proposedmethodformonitoringpaymentlagtimesandarrears565ABBREVIATIONSACCTCentralaccountingagencyoftheTreasuryAE/CPCommitmentvalidation/PaymentallocationsAFRITACIMFAfricanRegionalTechnicalAssistanceCenterAICEIntegratedgovernmentaccountsapplicationASYCUDACustomsmanagementandrevenueapplicationBCEAOCentralBankofWestAfricanStatesBPProgrambudgetsBSISpecialinvestmentbudgetBVGOfficeoftheAuditorGeneralCAISFFITSupportUnitfortheTaxandFinancialDepartmentsCARFIPSupportUnitforFiscalReformCASCASupportUnitforControlStructuresCGSPPublicServiceComptrollerGeneralDAFAdministrativeandFinancialDirectorateDEPENSEDNTCPExpenditureManagementSoftwareDFMFinancialandHardwareDirectorateDGABEDGBGeneralDirectorateofGovernmentPropertyManagementGeneralDirectorateoftheBudgetDNCFNationalFinancialControlDirectorateDNPDNationalDevelopmentPlanningDirectorateDNTCPNationalTreasuryandGovernmentAccountingDirectorateDOBBudgetpre-debateDPPDMultiyearexpenditureprogrammingdocumentsECOWASEPAEconomicCommunityofWestAfricanStatesAdministrativePublicEntityFCFACFAfrancFU"FunctionalUnits"departmentsreceivingbudgetresourceappropriationsGFSM20012001GovernmentFinanceStatisticsManualISInformationSystemISGBUDIntegratedGovernmentBudgetingSystemISGTASTaxrevenuemanagementapplicationLdRBudgetreviewLawLFIInitialbudgetlawLFRSupplementarybudgetlawMEFBMinistryofEconomy,Finance,andBudgetMTFFMedium-termFiscalFrameworkPAGAMGovernmentalProgramforFiscalImprovementandModernization(PFM)PCEGovernmentChartofAccountsPEFAPublicExpenditureandFinancialAccountability6PFMPublicfinancialmanagementPGTTreasuryPaymasterGeneralPREDBudgetexecutionmonitoringsoftware–"Economicreformprogramfordevelopment"PTIThree-YearInvestmentPlanRGCPGeneralgovernmentaccountingregulationsRGDGeneraldistrictTaxcollectorSCCSSupremeCourtAccountingSectionSDIITmasterplanSNCINationalinternalcontrolstrategySOLDEGovernmentemployeepayrollsoftware(DGB)TABORFormergeneralaccountkeepingapplicationTFPTechnicalandfinancialpartnerTOFEGovernmentFinancialOperationsTableTSATreasurySingleAccountWAEMUWestAfricanEconomicandMonetaryUnion7PREFACEFollowingarequestfromtheMinistryofEconomy,Finance,andBudgetofMali,amissionfromtheIMFFiscalAffairsDepartmentvisitedBamakofromFebruary5to20,2013to(1)takestockofongoingreformsandtheimplementationofrecommendationsmadein2011;(2)providetemporaryassistanceincashanddebtmanagementwithaviewtoreactivatingtheTSAwhenpossible;(3)assistinmonitoringtheexpenditurechaininaccordancewiththegovernment'sstatedintentionofcontrollingpaymentlagtimesandarrears;(4)updatetheactionplanestablishedin2011andreviseitsimplementationtimetableasreflectedinthePAGAM-GFPII;(5)assessfuturetechnicalassistanceneeds,inparticularforthecomingmonths,andpromotesynergiesamongdonorsandlenders.
ThemissioncomprisedMr.
BenotTaiclet,MissionChief,andMr.
JeanBertrandBigueyandMs.
ClaudeTrupin,bothexpertsfromtheIMFFiscalAffairsDepartment.
ThemissionwaswelcomedbyHisExcellency,TienaCoulibaly,MinisterofEconomy,Finance,andBudget,Mr.
AbdoulayeTouré,SecretaryGeneraloftheMinistry,andMr.
SidikiTraoré,AdvisortotheMinisterresponsibleforFinance.
Itinterviewedseveralofficialsandtheirassociates:Ms.
CisséSidibé,NationalDirectorofTreasuryandGovernmentAccounting,Mr.
RobertDiarra,DirectorGeneralofBudget,Mr.
AlhassaneAgHamedMoussa,NationalDirectorofFinancialControl(DNCF),Mr.
DoloModibo,NationalDirectorofDevelopmentPlanning,Mr.
KarimTraoré,NationalDirectoroftheCentralBankofWestAfricanStates(BCEAO),Mr.
OuénaBabaNiaré,PresidentoftheAccountsSectionoftheSupremeCourt(SCCS),Mr.
AmadouOusmaneTouré,AuditorGeneral,Mr.
AmadouGadiaga,ComptrollerGeneral,andMs.
AminataSidibéSoumaré,CoordinatoroftheSupportUnitforFiscalReform(CARFIP).
Themissionwasabletodiscussitsconclusionsandrecommendationswithrepresentativesofthevariousdevelopmentpartners.
ThemissionmembersexpresstheirsincereappreciationtotheMinister'sofficefororganizingtheirtasks,totheofficialsfortheiraccessibility,andforthequalityandtransparencyoftheinformationshared.
ThemissionalsothankstheofficeoftheIMFResidentRepresentative,Mr.
AntonOpdeBecke,andinparticularMr.
BakaryTraore,ResidentEconomist,forhisassistanceinpreparingthemissionandhisinvolvementinitswork.
Finally,themissionisgratefultoMr.
AliouneDiop,IMFSecurityAdvisor,forhismuchappreciatedassistanceinthecontextofthemilitarycrisis,whichwasongoingthroughoutthemission'sstayinMalianterritory.
Comment:ThemissionwasfinancedbythegovernmentofJapanundertheTechnicalAssistanceprogramfortheECOWAScountries,toimprovethecredibilityofmultiyearbudgets.
ThemissionwouldbegratifieditiftheMalianauthoritieswoulddisclosethissourceoftechnicalassistanceandannouncetheresults.
8SUMMARYOFRECOMMENDATIONSTheyear2012wasmarkedbyexceptionaleventsinMalianhistory.
Thedroughtsof2011werefollowedbyactsofterrorismintheNorth,attemptstosecede,andtheMarch2012coupd'état.
ThesanctionsimposedbyECOWASandthefreezingofexternalfinancingputastoptoBCEAObankingtransactionsonbehalfofthegovernmentandhaltedmostinvestmentprojectsco-financedbyexternalpartners.
Facedwiththeseextremelychallengingdevelopments,theauthoritiestookanumberofappropriatemeasuresthroughwhichtheymanagedtosafeguardfromdisarraythepublicexpendituremanagementsystemandcontinuedtosupervisebudgetmanagementdespiteshortages.
Themissionwaspleasedtonotethemeasurestakeninthislatterrespect:reframingappropriationstoconformtoconstrictedpublicfinance;fundingthewareffortbybudgetitemsthroughasupplementarybudgetlaw(LFR);restrictingappropriationstospendingagencieswithduerespecttocashprojections;andmountingrepeatedeffortstofendofffiscalindiscipline.
Despitethesepointedefforts,FY2012endedwithheavyliabilities.
Themission'sstudyofasampleofexpensesshowsthat,whilewagepaymentsweremetovertheperiod,otherpaymentswereseriouslycurtailed,leadingtoconsiderableincreaseinarrearsbytheendofthefiscalyear.
Thesituationatend-2012wascharacterizedbyrisingdomesticandexternalarrears,liabilitiestocommercialbanks,andtheburdenofexternalanddomesticdebt.
Despitegovernmenteffortstolimittheincreaseofliabilitiestoonly2percentagepointsabovetheir2011level,overallliabilitiesidentified1atend-2012amountedto35percentofGDP.
Publicexpendituremanagementreformspredictablyloststeam.
Themission'squantitativeassessmentshowsthatonlyabouthalftheinitiativesplannedfor2013havebeenimplemented,withthenotableexceptionofprogressinfourareas:managingandmonitoringbudgetexecution,monitoringpaymentsarrears(whichcanbefurtherimproved),cashmanagement,andinternalcontrol.
ThereformagendaproposedbyFADin2011mustthereforeberevivedandrephasedtosynchronizewiththepost-crisistransitionandtheresumptionofimplementationoftheWAEMUharmonizedfiscalframework.
Recommendationstoaddressthemostpressingissuesduringthepost-crisisperiod:-Continuetomanageexpenditureandtoprioritizespendinginrespecttoneedsandavailableresources,whichmeansenactingasupplementarybudgetwithintheparametersofsecuredexternalfinancing;1Thebreakdownofliabilitiesisdescribedonpage30ofthisreport.
9-Effectivelymonitorbudgetexecutionthroughtheexistingmechanismforfollowinguponpaymentdelaysandarrears;-Improvethemanagementofco-financedprojectstoboostpublicinvestment;-UpdatethelegalframeworkbytransposingWAEMUdirectivesintodomesticlaw.
RecommendationstoresumeimplementationoftheWAEMUharmonizedfiscalframework:themissionproposestoreschedulethe2011reformtimetableinthefollowingway:-In2014,appropriatethebudgetfor2015inprograms;-By2017,providethefirstopeningbalance;-By2018,completethedevolutionofprogrammanagement;-In2018,havetheexternalauditdeliverafirstcertificationofgovernment'saccounts.
Asthemission'stermsofreferencesalsoincludedappraisingthemechanismformonitoringpaymentsarrearsandclarifyingcontradictorydatafromNovember2012onthepositionoftheTreasuryvis-à-visthebanks,themission,attheendofitswork,isoftheopinionthat:Paymentsarrearscanpossiblybemonitoredovertimethroughthefinancialmanagementsystem(PRED),basedonthevalidationofinvoices(andnotontheirreceptionbythepaymaster,asiscurrentlythepractice).
Thisfollow-upofpaymentsfrominvoicescomplieswiththegovernment'sletterofintenttotheIMFandwiththeWAEMUdefinitionofarrears.
Theproposeddatacollectionandprocessingmethodareannexedtothisreport.
Fromnowon,thenetTreasury'sposition(NTP)canbejointlyfollowedupbytheBCEAOandtheTreasuryaccordingtoacommondefinition.
Severalmeetings,heldinanexcellentclimateofcooperationbetweenthesetwostakeholders,resultedinacleardefinitionofthescopeoftheNTP:179accountsinbanksopenedonbehalfofgovernmentaccountants.
Thisscopeexactlymatchesthecoverageof"centralgovernment"inWAEMU'stermsandaccordingtotheIMF'sGovernmentFinanceStatisticsManual.
10I.
OPTIMIZECASHRESOURCESINACRISISCONTEXTANDWITHAMEDIUM-TERMOUTLOOKA.
Cashresourcebreakdownasaresultofthecrisis1.
Since2011,thegovernmenthasundertakenpoolingitscashinaTreasurysingleaccount(TSA).
Astatusreportofitsliabilities(atend-Juneandend-September)witheachofthe13commercialbanksoperatinginMaliandholdinggovernmentaccountswasdrawnupin2011.
Themissionhasbeentransmittedareconciliationreportcrosscheckingeachbank'snumberswiththoseoftheTreasury(DGTCP),theDebtManagementOffice(DGDP),andtheCentralAccountant(ACCT).
Furthermore,animpactstudyconductedin2011identifiedsevenbankswhoseliquidityratiocouldbeweakened,bytheirlossofcentralgovernment'sliquidities.
Inlate2011andearly2012,theTSAwaspartiallyimplemented,thePaymaster(PGT)andtheTaxCollector(RGD)hadanaccountwiththeWAEMUCentralBank(BCEAO)andthefirstrepatriationsofgovernmentassetsfromsevenpreselectedbankswerestarted.
2.
InMarch2012,theTSAwasstalledinthewakeofSanctionsbytheEconomicCommunityofWestAfricanStates(ECOWAS);inotherwords,BCEAOstoppedanytransactionsingovernmentaccounts.
HencePGTandRGDactivitieswithintheTSA,namely80percentofgovernmentaccountingandfinancialoperations,werestalled.
3.
FiscalcontinuitywasassuredattheexpenseofsetbacksintheimplementationoftheTSA.
Theauthoritiesreactedrapidlytopreventaninterruptioninpayments.
AccountsthathadbeenpreviouslyclosedinthecommercialbankswerereopenedandthebanksextendedoverdraftstopaycivilservantsinMarch2012.
Theseoverdraftswereadjustedbythegovernmentthefollowingmonth.
Shortlyafterwards,theBCEAOresumedbankingforthegovernmentbutgovernmentbankingwithcommercialbanksisstillmaintained.
4.
CashresourcesarenowdispersedamongthecommercialbanksalthoughbankingwiththeBCEAOisstillpreferred.
Onehundredseventy-nineaccountshavebeenopenedonbehalfofgovernmentaccountantswithaconsolidatedbalanceofCFAF103.
910billionasatDecember31,2012.
Allspendingagenciesandco-financedprojectsincluded,theoverallnumberofaccountsopenedwiththecommercialbanksstandsatabout3,400.
Thatnotwithstanding,thePGTandRGDnowpreferablyoperatewiththeBCEAO.
5.
Thissituationisdetrimentaltocashmanagement.
Thebroaddispersalofliquiditiesmakespreparingaregulargovernmentcashflowstatementimpossible.
Eachgovernmentaccountantisresponsibleformonitoringhis/heraccountsandreconcilingthemwiththebankstatements(hardcopystatementsarecollectedonadailybasis).
TheACCTalsoconductsitsowndailybankreconciliationsforitsaccounts,buthasdifficultyinconsolidatingtheoverallbankreconciliation.
116.
TheTreasurycontinuestoclosedormantaccounts.
Thisprocessofclosinginactiveaccountsisstillbeingcarriedout.
Inearly2013,acumulativeamountofCFAF6billionwascreditedbacktotheTreasury'saccounts.
7.
Thestructureofbankassetsevolvedduringthe2012crisis.
TheBCEAOprovidedasummarytableofliquidityandcoverageratiosoftheliabilitiesof13banksoperatingonthelocalfinancialmarketatend-2011andmid-2012(seebelow).
Liquidityratiosoverall(onlyfourbankssawanimprovement)declinedsignificantly.
Changesinthecoverageratioweremoremixed(sixhadimprovedandsevenhadworsened).
Thesituationofonebankhadseriouslydeterioratedintermsofownerequity.
Furthermore,thedatacovertheperiodDecember2011toJune20122andthereforedonoteliminatesomeseasonaleffectsthatwouldhavebeenerasedinayear-on-yearcomparison.
ThesituationofthebanksandtheindicationsofuncertaintyfromtheBCEAOpointtotheneedtoupdatethestudyconductedin2011ontheeffectofthemigrationofgovernmentliquiditytotheTSA.
RecommendationInthesecircumstances,there-establishmentoftheTSAisamedium-termobjectivetobeprudentlypursued.
Agradual,organizedandwell-managedapproachisinorder.
Themissionproposesproceedingintwostages:-Aninitialgeneralstageofsurveyingallmobilizableresources,duringwhichtheimpactstudyconductedin2011wouldbeupdated.
-Asecondstageofphasedre-introductionoftheTSAwithatimetableoftransfersfrom2013onwards,tailoredtothesituationofthebankseveniftherelativevolumeofgovernmentassetsdepositedinaccountswiththemisusuallysmall.
Onlyafterwardswouldgovernmentaccountsbegraduallytransferred.
2Theonlydataavailablewhenthemissionvisited.
12Table1.
Commercialbanks,potentialimpactofthetransferofgovernmentliquiditytotheTSAMethodologicalNotes:ThebankshavebeenlistedanonymouslyattherequestoftheBEAONationalDirector.
Theliquidityratiomeasurestheratioofassetsthatareavailable,encashable,orcanbemobilizedintheshortterm(maximumthreemonths)—inthenumerator—toliabilitiesthatarecallableintheshorttermandsignaturecommitmentsthatmaybeexecutedintheshortterm(maximumthreemonths)—inthedenominator.
Thecoverageratioofmedium-tolong-termusestostableresourcesmeasurestherelationshipof:-thenumeratorcomprisingcorecapital;supplementarycapital;depositswitharesidualtermofmorethantwoyears;resourceswitharesidualdurationofmorethantwoyears;bondborrowingandotherborrowingattermsofmorethantwoyears;-tothedenominatorcomprisingnetfixedassets;assetsofbranchesandagenciesabroad;placementsecuritieswitharesidualrepaymentperiodofmorethantwoyears,withtheexceptionofsecuritieshavingaBCEAOrepurchaseguarantee;publicandsimilarsecuritiesandholdingsofgovernmentloansecuritieswitharesidualtermofmorethantwoyears;nonperformingloans(unpaid,inescrow,doubtful,andinlitigation)notcoveredbyprovisions;performingloanswitharesidualdurationofmorethantwoyears;assistancetobanksandotherfinancialinstitutionswitharesidualdurationofmorethantwoyears;allotherassetsthatcanonlybecollectedafteratleasttwoyears.
12345678910111213PerformanceatDec.
31,2011101.
3485.
5694.
4788.
4586.
2386.
3896.
3989.
9680.
2972.
5988.
8883.
2884.
56TSASimulationatDec.
31,2011100.
883.
5694.
0886.
5184.
9986.
0596.
0688.
3779.
3672.
2788.
5980.
9974.
1PerformanceatDec.
31,2012120.
1103.
969.
876.
574.
479.
584.
286.
8087.
9073.
4082.
0076.
7037.
50SimulationCUTau31Dec2012120.
50103.
9067.
4076.
0072.
3079.
0081.
2086.
0086.
8073.
4081.
8084.
500.
00PerformanceatDec.
31,2011109.
0077.
9061.
2076.
30126.
9076.
1092.
2082.
9091.
8087.
90119.
20186.
809.
40TSASimulationatDec.
31,2011114.
0677.
9061.
1676.
27126.
9376.
0792.
2482.
9491.
8187.
90119.
15186.
769.
41PerformanceatDec.
31,2012110.
2676.
4452.
6875.
32120.
6977.
7576.
4985.
9484.
0390.
55130.
04188.
44NSTSASimulationatDec.
31,2012115.
4876.
4452.
6875.
32120.
6977.
7576.
4985.
9484.
0390.
55130.
04188.
44NSIMPACTOFTHETREASURYSINGLEACCOUNTONLIQUIDITYANDCOVERAGERATIOSOFRESOURCEUSEINTHEMEDIUMTOLONGTERMSource:BCEAOBANKSLIQUIDITYRATIO(Standard:75%min)COVERAGERATIO(Standard:75%minthen50%starting01/2013)13B.
Intheshortterm,takestockofmobilizableresources8.
Effortstoclosedormantaccountsmustcontinue.
Thefirstwaveofclosuresshallapplytoaccountswithnoactivityforatleastthreeyears,inparticularACCTandRGDaccounts,basedonthetablesprovided.
Theprocessmustbeexecutedinparticularforaccountswithveryfewinventoriedoperations.
9.
Alltheaccountsofspendingagenciesmustcontinuetobeinventoriedandmonitored.
TheinventoryofaccountsopenedbyCentralgovernmentaccountants3wasconductedandcompletedbytheNationalTreasuryandGovernmentAccountingDirectorate(DNTCP).
Reconciliationoftheseaccountsisusuallymadebytheaccountantsthemselves.
Thisfirstroundoftheinventorymustbecompletedforalloftheapproximately3,400accountsopenedbygeneralgovernmentagenciesidentifiedin2011,4whichmayhavesinceincreasedinnumber.
Astatusreportmustbedrawnupbycrosscheckingtheaccountswiththebanks.
TheDNTCPmustalsoensuredisciplineamongautonomousagenciestorestrainthemfromopeningnewaccounts.
Box1.
ReconciliationofthenetTreasurypositionbetweentheDNTCPandBCEAOTheNovember2012missioninthecontextoftheIMFprogramdetectedconsiderablediscrepanciesbetweenthemonetarysurveyproducedbytheBCEAOandtheNetTreasuryPosition(NTP)reportedbytheDNTCP.
ThisFebruary2013missionorganizedtwomeetingstoreconcilethetwo.
ThescopeandmethodologyfordefiningtheNTPwerethereforeclarifiedinthepresenceofbothparties.
-AdecisionwastakentolimitthescopeoftheNTPto179accountsopenedonbehalfofgovernmentaccountants,withatotalbalanceofCFAF103,910,279,067atDecember31,2012.
-Theaccountsabovepoolthecentralgovernment'sassetswiththoseofthelocalauthorities,onwhosebehalftheaccountantsarecontrollingexpenses.
ThescopeoftheNTPredefinedinthiswaymatchesthescopeof"centralgovernment"asdefinedinthe2001GovernmentFinanceStatisticsManual1/andWAEMU'sstandards.
-Themethodusedistheoneenvisagedinthe2001Manual:theNTPdescribedintheTOFE"abovetheline"istheresultofthemonetarysurveyproducedregularlybytheBCEAO.
Itisthereforeanexogenousaggregate,hassomeelementsthatcouldbedefinedasbelow-the-linefinancingnotTOFEbalancingvariables.
1/2001GovernmentFinanceStatisticsManualpublishedbytheIMF.
3Itshouldbenotedthatgovernmentaccountants'fundsrepresentthecombinedliquidityofthecentralgovernmentandlocalauthorities,onwhosebehalftheaccountantsexecuteexpenses.
4Administrativepublicentities,specialwelfareorSocialSecurityestablishments,publicindustrialandcommercialestablishmentsprovidingaservicetothepublic.
1410.
TheTreasurymusthaveatitsdisposalareliablesurveyofitsbanksinrealtime.
Thedailybankaccountsaresubjecttodirectcollectionofdatafromthebanksbycourierorfax.
Thiscircuitcouldbeimprovedbyintroducingdirecte-mailexchanges(securemessaging,forexample).
Similarly,forunitsalreadyconnectedtothecomputerizedaccountingsoftware(AICE),developmentofthebankingmodulecouldbeprioritizedalongwiththeroll-outofAICEattheACCT.
11.
TheBCEAOagreedtoprovidesimulationsofgovernmentassettransfers.
The2011impactstudycouldbequicklyupdated.
ThetimetableoftransfersfromgovernmentaccountswiththecommercialbankstotheTSAcouldthenbesetupaccordingtothestudyandnotonlyattheinitiativeoftheaccountants.
12.
Generallyspeaking,themissionwishedtocommendandunderscoretheclimateofcooperationthathasbeenrestoredbetweentheTreasuryandtheCentralBankandthewillingnessexpressedbytheBCEAONationalOfficetoworkwiththegovernmentafterthedifficulttimesinMarch2012.
C.
Poolallgovernmentresourcesinthemediumterm13.
TheTSAmustbereintroducedandcompletedaccordingtoastrategyandarealistictimetable.
TheDNTCPisthekeyadministrativestakeholderindefiningandmonitoringthestrategicapproachandputtingitintoperspective.
Theapproachwillbethefollowing:todefinethescopeoftheTSAatthedifferentstagesofitsre-implementation,thetechnicalarrangementsfortransfers,focusingspecificallyonthemanagementorclosureofpendingoperations,andtheaccountantsinvolved;tomanagechangesandtotrainaccountants;tofinalizetheTSAbankingarrangementwiththeBCEAO;andlastly,todesignandtofollow-upontransfersofliquiditiestoTSAaccounts(TSAsubaccountsareimpossibleintheBCEAOoperatingsystem).
14.
ThetimetablefortransferswillbebasedinitiallyontheconclusionsoftheimpactstudyandtheBCEAO'senhancedsimulations.
Forcentralgovernmentaccountsopenedwiththecommercialbanks,thecompletionoftransfers,oratleastofthemaximumnumberofaccounts,shouldbeplannedforend-2013soastobeginupcomingFY2014withaclearscopefortheTSAandstartafull-fledgedcashmanagement.
RecommendationTheTSAmustgraduallyincorporateallgovernmentliquidities.
-Afirststepwillbetotransferthecentralgovernment'scoreliquiditiesintotheTSA—namelythehundredandseventy-nineaccountsopenedtodatewiththecommercialbanksonbehalfofcentralgovernmentaccountants(scopeoftheNTP).
-Asecondstep,willbetopoolintheTSAallautonomousagencies'liquidities(includingtheirownresources)meetingcertaincriteriaforinclusion,whichareyettobedefined(thecriteriawouldexcludeagenciesmostlyprovidingmerchantservices).
15-AthirdstepwouldbetocollecttheMaliancounterpartfundsforco-financedprojectsinanescrowaccountopenedwiththeBCEAOfordonorswhoaccepttheprinciple.
15.
Thisrequirementtodepositthefundsofallagenciesshouldbegroundedbylaw.
TheprincipleofrequiringfundstobedepositedintheTreasurymustbeclearlyreinstatedandobservedinaccordancewiththeprincipleofasingleaccountnotedinthe2009WAEMUdirective.
Thisimpliesthepriorclarificationofexistingtextsonpublicfundsdeposits(mainlyautonomousagencies)intheTreasury.
Thisadaptationofthelegislationshouldcompletedby2013.
16.
Agenciesbenefitinglargelyfromsubsidiesordirectpublicfinancingshouldtransferfundsinorderofpriority.
Aclassificationofagenciesshouldbedrawnupusingseveralcriteriadefiningtheirproximitytothecentralgovernment.
Theywouldthenbecategorizedas"governmentoperators"andthereforeshouldbecompelledtodeposittheirfunds(ownresourcesincluded)intheTSA.
Todoso,theDNTCPshouldbegiventheauthoritytoassessthesituationwithrespecttopredefinedfinancialcriteriaandtosubmitproposalsforthegovernmenttomakerelevantdecisions.
Theimplementationofthisclassification/inclusionapproachcouldpossiblystartassoonas2014.
ThescopeoftheNTP,namely179accountsopenedonbehalfofgovernmentaccountants(currentlyincludetheassetsofthecentralandlocalgovernmentsandautonomousagencies)Theenhancedscopeof3,400accountsopenedonbehalfofotherpublicagencies(nowincludetheownresourcesofagenciesandnationalcounter-partiesofcofinancedprojects.
CentralGovernmentInstitutionsTSAProjectsSTAGE1STAGE2STAGE3(adjustmentofforthcomingagreements)Figure1.
GraduallypoolcashresourcesintheTSA16Box2.
Example,inFrance,ofcriteriadefiningagencies'inclusioninthecategoryof"governmentoperators"Anagencymaybeclassifiedasagovernmentoperatoronthebasisofanumberofcriteriadefinedtoreflectthetightnessofitslinkswiththecentralgovernment:-theagencyprovidespublicservice,whichcanexplicitlybeincludedinapolicydefinedbythegovernment;-Financingprovidedmostlybythecentralgovernment,directlyintheformofsubsidiesorindirectlythroughtheallocationofresources,inparticularfiscalresources.
Thisdoesnotexcludethepossibilityoftheoperatorexercisingadditionalmarketactivities;-Directcontrolbythegovernment,whichisnotlimitedtoeconomicorfinancialcontrolbutarisesfromgovernmentoversight.
Itisalsopossibletoclassifyasgovernmentoperatorsinstitutionsthatdonotmeetallthecriteriadescribedabove,butareconsideredasimportantbecauseof:-theirweightinloansorintheattainmentoftheobjectivesoftheministriesthatfundthem;-Theuseoroccupationofpropertyappropriatedbyormadeavailabletothegovernment.
Source:France,BudgetDirectorate"ForumonPerformance.
"17.
Nationalcounterpartfundsofco-financedprojectsmayalsobedepositedintheTSA.
Particularthoughtmustbegiventoprojectsco-financedbyforeigndonorsintheinterestofsecurityandtransparencyoffinancialoperationsbetweendifferentstakeholders.
Todate,projectsco-financedbyforeigndonorsfallunderfinancingagreementswhoseprimary(oronly)purposeistosetup,callfor,andpaygovernmentcontributionsintoaccountsopenedwiththecommercialbanks.
Whilegovernmentdepositsshouldbedrivenbytheprojects'achievements,thepracticeisthatgovernmentdisbursementscomplywiththedisbursementschedulestatedintheagreementswhateverthedegreeofprojects'generalprogress.
Completionandformalclosureofprojectsarenotproperlyfollowedupandthegovernmentfundsarekeptuntilaprojectends,evenifitscompletionisdelayed.
18.
Themonitoringofnationalcounterpartfundsusedinco-financedprojectsshouldbeimproved.
Donorshavetwolegitimatedemands,first,toassurethattheirfundsareactuallybeingusedfortheproject;and,second,toensurethatthegovernmentcontributesthepre-agreedamount.
Forthispurpose,aprojectaccountisusuallyopenedwithacommercialbank.
Fundsarecurrentlycreditedtothisaccount,whichisoperatedbytheprojectmanager,asaresultofwhichthegovernmentcannolongertracktheuseofthefunds.
19.
Providedthatthepartnersagree,itisproposedthattheprincipleofdepositingnationalcounterpartfundsinanescrowaccountbeestablished.
Usingthisapproach,foragivenproject,theannualtrancheofcreditswouldbedepositedinanescrowaccountlocatedintheBCEAO,whichwouldassurethetechnicalandfinancialpartners(TFP)thatthegovernmentwillmeetitsobligations.
Theprojectaccountwouldthenbefundedfromtheescrowaccount,intranches.
Afterusingthefirstadvance,thereplenishmentoftheaccountwouldbeconditionaluponverificationofuse,toallowthegovernmenttofindouttheend-useofthedeposits.
TheimplementationofthissolutioninfutureprojectsthereforerequirestheestablishmentofasingleescrowaccountattheBCEAOwithasmanynonfungiblelines17asthereareprojectsor,ifthissetupisimpossible,asmanyaccountsastherearenewprojectsbasedonthismodel.
20.
TheprojectescrowaccountattheBCEAOwouldnotbefungiblewithgovernmentcashflow.
Itwouldbeusedtoensurethesafetyandtransparencyofthegovernment'squotasintheeyesofforeigndonors.
Governmentfundsdepositedintheescrowaccountcouldpresumablybemobilizedatanytimebyprojectheadstoprovidefinancialcoverageforinvoicespertainingtoeachproject.
Theseinvoiceswouldthenbepaidthroughtheaccount(s)openedinthecommercialbanknetwork.
RecommendationIntroduceinupcomingprojects'financingagreementstheprincipleofdepositingnationalfundsinanescrowaccountopenedwiththeBCEAO.
D.
AdapttheaccountingandfinancialarchitecturetooptimizetheTSA21.
TSAtransferanddeploymentoperationsrequireanadaptationofthegovernmentaccountingandfinancialarchitecturetostreamlinedatacollectionandcashflowsandtofacilitatetheirmanagement.
Figure2.
ProposedarchitectureofaccountsopenedwiththeBCEAO22.
Intheproposedscheme,cashsurplusesareregularlysweptfromregularaccountstoapivotaccount(ACCT).
Cashfromrevenuecollection(RGDandlocaltaxcollectors)istransferredtotheACCTtoenabletheACCTtoresupplythePGTwithcashandtooperateitsownpayments.
FollowingthegradualtransferoffundsfromagenciestotheACCTPGTRGD8regionTreasurersAgenciesSubaccountssweepingCentralizedbankingRevenueconsolidationdailyoperationsDailyoperationsCentralizationofDGI/DGDrevenueandAccountants'operationseceveursSeniortaxcollectorsReceveursTaxCollectors18ACCTaccount,theACCTwillbeabletoactasthecentralizingaccountantofthebankingoperationsforallpublicentities.
Agencies'revenueandexpenseoperationswillbeaccountedintheirrespectiveledgerspriortothetransfertotheACCTforbankreconciliation.
Thereconciledoperationswillthenbetransmittedtotheagenciesfortheaccountantstobalancetheirledgers.
23.
SenioraccountantsrelyontheirBCEAOaccountstooperatetheirdailytransactions.
TheaccountsopenedfortheRGDandthePGTcanbeusedforregularspendingandrevenuecollectiontransactions.
Theaccountsoftheeightregionaltreasurersstandfortheirownoperationsandforcentralizingthesecondaryaccountants'(taxcollectors')revenueandexpenditureoperations.
OncethetransactionsarereconciledbytheACCT,theyarecommunicatedtothesenioraccountantstobalancetheirrespectiveledgers.
24.
Thereisneedforatrainingplanandsupportfortreasuryunits.
TheTSAopenedwithcentralizingaccountants(RGDandregionaltreasurers),andtheirinteractionswithsecondaryaccountantsmustbecomprehensivelydescribedinmanualsonaccountingprocedureswithtrainingmaterialsandtailoredsupporttotheunits.
Thetrainingtimetableshouldbesynchronizedwiththe201314timetableoftransfersfromthecommercialbankaccountstotheTSA.
25.
Pettycashmanagementattheregionallevelshouldbecustomizedwiththeassistanceofabankingpartneryettobedefined.
GiventhatBCEAOcannotcoverpettycashoperations(smallamountsofrevenueandexpenses)throughoutthecountry,theseshouldbeoperatedbyacommercialbank,ideallytheonewiththelargestnetwork.
Theso-collectedliquiditiesshouldthenberegularlyredepositedtotheACCT'saccountandaccountedforintheyear-endbalance.
Thecommercialbankinchargeoftheoperationsshouldbechosenthroughabiddingprocessresultinginanoperatingagreement.
Thepaceofre-depositsfromthebanktotheTreasurydeservesattention;aweeklyfrequencyseemsrealistic.
IntermediarybankComptableComptableComptableComptableComptableComptableAccountantsComptableComptableComptableComptableComptableComptableRevenueCollectorsCashFlowsTSAaccountopenedonbehalfoftheACCTlnformationflowsFlowsofredepositstotheTreasuryFigure3.
CashflowsandtheTSA19RecommendationsOpenasmallnumberofaccountsattheBCEAO,namely11accountsopenedwiththeBCEAOconstitutingtheTSA,organizedasfollows:-TheaccountopenedattheACCTistheTSA'spivotaccount.
-ThePGTandtheRGDeachretaintheaccountstheycurrentlyhave.
-Anaccountwillbeopenedforeachoftheeightregionaltreasurers.
Organizepettycashtransfersfromtheregionsthroughanintermediarycommercialbank.
E.
Starttoactivelymanagecashanddebt26.
Theannualcashplan,appendedtothebudgetlaw,isnotusedforintra-yearmanagement.
PreviousTAmissionsrecommendedtheestablishmentofadatabase,theproductionofadailycashsurvey,andanintra-yearrollingcashplan.
Theannualcashplannowappendedtothebudgetlawisastepintherightdirection,butitsprojectionsformonthlyrevenueandexpenditurearebasedondatafromthepreviousfiscalyear.
Currently,theinstrumentsforcashmanagementandforrevenueandexpendituretablesarenotsuitable.
Theyareusedmainlyashypotheticalfiscaltargetsforspendingandcollectorunits.
Thecashflowtechnicalcommitteeisasaconsequenceabletofollowuponfiscaltargetsforrevenueandexpenditure,buthasnoreliablevisionofactualcashrevenuecollection.
27.
Thecashplanmustbeupdatedatthebeginningof,andmonitoredthroughout,thefiscalyear.
Theimplementationofreal,activecashmanagementisnowbasedontheconsolidationandenhancementofthecurrentsystemwith,inparticular,thecontinuousintegrationoffiscal,accounting,andfinancialforecaststakingadynamicapproach.
Thecurrentmonthlycashflowtablecanbeusedasasoundbasisforthenewsystem.
Inthemediumterm(mid-orend-2014),followingthetransferofthegovernmentaccountsfromcommercialbankstotheTSA,andtheimplementationoftheAICEcashmanagementmodule,theACCTshouldbeabletoproduceaconsolidateddailycashsurvey.
Box3.
Updatetheappendedcashplaninthebudgetlawforintra-yeartrackingBreakdowntheannualcashplanstructureduringthefiscalyearbasedonactualrevenueandexpenditureexecutedfromtheTSAaccounts(gradualinclusionbasedonthetimetableoftransfersfromcommercialbankaccounts).
Switchapproachesfrompursuingfiscaltargetsonrevenueandexpendituremanagement,tofollowinguponactualcashflow.
Introducestockitems(balancesafterreconciliationandfiscalpositionvis-à-visthebanks,treasuryunitarrears,bondsmaturingatthebeginningofthefiscalyear)andflows(unpaidcommitmentsandpendinginvoices,withthehelpofthefinancialcontrollers'network).
Updatethemonthlyprojectionswithactualcashflowsinsteadofreportsonbudgetexecution.
2028.
Cashmanagementwithinafull-fledgedTSA,allowsfinetuningdebtpolicy.
CurrentlytheTreasurybondplanningseemsnottobelinkedtocashflowprojection.
Asoundanddynamiccashplanwouldallowabetterphasedissuanceofbonds,oranyotherdebtinstruments,tomaintaintheTSAatitsrelevantbalance.
29.
Bankarrearsshouldbetakenintoaccountinthecashplan.
Asafirststep,allarrearspendingwiththecommercialbanksshouldbebalancedpriortothetransfersofliquiditiesfromcommercialbankstotheTSA.
The2011surveyonthefiscalpositionoftheDNTCPandtheDGDBshouldbeupdatedbeforehand.
Thecashplananditsdisbursementscheduleshouldaddresstheongoinggovernmentbank-arrearsclearingpolicyandtherelatedbankingagreements.
30.
Continuetomonitorthesequenceofexpenditureflowupstreamfromappropriations.
Anapparentlysimpleandpertinentintra-yearfiscalregulationmechanismwasestablished.
Thisconsistsofgivingnotification5ofappropriations(byministerialdecreepreparedbytheDGB)basedoncashprojections(Treasuryforecasts).
Thus,in2012,notificationwasgivenonlyofappropriationsformandatoryexpenditure(onaquarterlybasis)inaccordancewiththebudget.
Allocationsforoperatingexpenseswerereduced(byupto20percent).
Investmentspendingwasnotifiedonlyinspecialcasesdocumentedbytherequestinglineministries.
ThisapproachinvolvingappropriatesynergiesbetweentheTreasuryandtheDGBshouldbemaintainedtocontainexpensesbasedonprojectedresources.
RecommendationUsetheexistingcashplanappendedtothebudgetlawandupdateittofosterintra-yearcashmanagement.
II.
ORGANIZETHEEXPENDITURECHAINTOCONTROLDELAYSANDARREARSA.
Keepspendingwithinacontextofscarcityandrisk31.
The2012scarcityoffinancedrovebudgetmanagementintohurdles.
Box4belowgivesasyntheticviewofthisparticularlytensefiscalyear.
32.
Spendingisthereforesubjecttodualtensions.
Scarceresourceshaveseverelyrestrictedservices,hencetheriskoffiscalindisciplineasseeninSenegalin2008.
6Atthe5Notificationconsistsofmakingavailabletopaymentauthorizingagentsoveragivenperiodtheappropriationstheycoulduseduringthefiscalyear.
OperatingandpersonnelexpensesareusuallynotifiedonaquarterlybasisbytheFinanceMinister;investmentandpersonnelexpensesarenotifiedhalfyearly.
6Thedepartmentsusedtoacceptdeliveriesofgoodsandservicesinviolationoftheexpenditurerules.
These"extrabudgetary"expenseshadamountedtoasmuchas10percentofannualfiscalspendingandresultedinamultiyearplantocleartheseirregularoutstandingpaymentstosuppliers.
21sametime,thedepletionofforeignfinancingandthetemporaryfreezingofassetshavefurtherexacerbatedthecashcrunch.
33.
In2012,facedwithconstraintsandrisks,thegovernmentcontrolledthebudgetexecutionwithafirmhand.
Themedium-termframeworkwasreframed.
Eventhoughthebudgetpre-debatewiththeParliament7couldnottakeplacein2012becauseofthecountry'sinstability,reportsontheexecutionofthebudgetweretransmittedtotheNationalAssemblyinduetime.
ThegovernmentproposedaLFRtostrikeoutCFAF400billioninappropriations.
Appropriationswerenotifiedbasedonavailableresourcestosafeguardmandatoryexpensesasapriority(wages,contractualspending)tothedetrimentofotherexpenses(currentoperationsandnon-committedinvestments).
Box4.
FY2012TheeventsofMarch22,2012hadmajorrepercussionsonbudgetexecutionin2012.
ThetemporaryfreezingofgovernmentassetsintheBCEAOledtoacashflowcrisisandrecoursetoadvancesfromthecommercialbanks.
Thesuspensionofaidresultedinaveryrestrictivepolicytopreventfiscalslippage.
TheLFR,basedonlyondomesticrevenue,wasreviseddownwardsbyone-thirdoftheresources.
Majorrevenuerevisionsin2012CFAFbillionsRevenuein2012InitialBudgetLaw(LFI)SupplementaryBudgetLaw(LFR)GeneralBudget1331,879930,326TaxRevenue875,833815,757ExceptionalRevenue(HIPCresources)11,599-SpecialInvestmentBudget(BSI)329,1573,596ProgramGrants(budgetaryassistance)38,570-SupplementaryBudgets,Accounts,andSpecialFunds9,62911,333Total1341,508941,659Overall,expenseswerereducedbyCFAF400billionandeachitemwasreducedinvariousproportions.
Operatingexpenses:remunerations—CFAF228billionforthegovernmentandCFAF79billionforlocalauthorities—weresafeguarded,aswerescholarships(CFAF18billion),whichareequatedwiththoseexpenses.
Thesameistrueofmandatoryspendingoncommunicationsandenergy(CFAF30billion).
Theotheroperatingexpenseitems,equipment,travel,etc.
werecutbackby25–30percent.
Expensesonthedebt,capitalandinterests,werecutbycloseto50percent.
Asaresult,the2012trancheofCFAF7.
5billionofthecommercialbanks'overdrafts-reducingplan,initiatedin2011bytheDND,couldnotbecarriedover.
Investmentcontinuedtoplummetwithareductionofover70percent.
Onlyafewdomesticallyfundedinvestmentsweremaintained.
7PleasenotethatthefirstDOBwasheldin2012underconditionssetbyWAEMU.
22Box4.
FY2012(continued)Salientpointsofthe2012expenditurereview(CFAFbillions)OriginalBudgetLaw2012LFR2012Equipment–Investment176.
6141.
3Equipment–InvestmentHIPC9.
10.
3Principal–InterestontheDebt115.
771.
0Investment–(externalfinancing)329.
13.
6SectoralFiscalSupport28.
9920.
0TOTAL1483.
5988.
6Thispolicypreventedanirreversibleslide.
Theoveralldeficit(excludinggrants)andthefiscaldeficit,baseyear2012,areestimatedbythegovernmentat0.
0percentofGDP,comparedwith-7.
5percentand-0.
3percentin2011.
Prudencewasmaintainedin2013withinadeterioratedeconomicsituationandnoexternalfinancingwasincurredtobackthebudget.
ThedeficitisCFAF50billionforaboutCFAF1,000billioninresources.
34.
Expenseswerealsocontainedbycontrollingend-of-yearspending.
Inkeepingwiththe2011FADrecommendations,twokeymeasureswereimplemented:Thesupplementaryperiodwaslimitedtoonemonth(circularn°03346/MEFB-SGofOctober10,2012),withtheadditionaloutcomeofbettercircumscribingthefiscalyear.
Depositordershavebeenprohibited(circularn°03396MEFBSGofOctober12,2012).
TheseordersusedtoallowthePGTtopayforgoodsandservicesbeyondthecloseofthefiscalyear.
Thismechanism,whichisequivalenttoamassiveanduncontrolledcarry-forwardofcash,formerlycaused,inthesubsequentfiscalyear,cashflowtensionscompromisingtheexecutionofthebudget.
35.
Finally,thegovernmentissendingmultiplewarningstofendofffiscalindiscipline.
ThecommunicationfromtheMinisterofEconomy,Finance,andBudget(MEFB)wastoughenedwithregardtoexpense-related"extrabudgetary"risks,whichcorrespondtogoodsorservicesprovidedwithoutthefinancialcontroller'sapproval.
Provisionsintheinitialbudgetlawoftheyearrecallthatanygovernmentemployeewhocommitsextrabudgetaryexpenses,orcommitsexpensesinexcessofappropriations,ispersonallyandfinanciallyliable;andthatinthiscase,thegovernmentisnotaccountable.
TheMEFBcombinestwoleveragesinthispolicy:theimplementationofdepartmentalrules(circular00390MEFBSGofFebruary4,2013,inparticular)andcommunicationtocreditorsoninvoicesandpayment-relateddocuments.
Thispolicyseemstobebearingfruit;in2012onlyone"extrabudgetary"expenseofCFAF500millionwasfound.
36.
Significantliabilitiesaccumulateddespitetheseproactivestepstowardgoodmanagement.
Theyear-endamountofliabilitiesroseasaresultofthecashflowtensions,subsequentgovernment'scommitmentswiththebanks,theissuanceofbonds,andtheaccumulationofsizableoverduedebts.
AccordingtotheTreasuryandtheNationalPublic23DebtDirectorate(DNDP),liabilitiesatend-2012roseby2percentagepointssince2011,to35percentofGDP:Domesticdebtliabilitiesamountingto5percentofGDP,ofwhichCFAF25billioninpaymentarrears(invoicesstillpending90daysafterbeingrecordedonthebooks);8CFAF15billion(invoicespendinglessthan90days);9CFAF111billionincommitmentstothebanks9(overdrafts,debtsecurities,miscellaneousobligations);ExternaldebtliabilitiesamountingtoGDP30percent,10includingCFAF29billion(GDPpercent)inexternalarrears.
37.
Asanexample,themissionstudiedthecaseoftheMinistryofHealth,11basedonfinancialdatatransmittedbytheDirectorateGeneralofBudget.
Thissampleisparticularlyillustrativeofliquidityshortageissuesbutalsoofhabitualmanagementpracticeswithtraditionallylowvolumesofspendingatthebeginningoftheyearandspectacularincreasesatyear-end.
38.
PayrollservicesweremaintaineddespitetheMarch2012TSAshutdown.
Thecentralpayrollofficemanagedtopaycivilservants'compensationsteadily,albeitvariationinvolumesofpaymentsoccurredfrommonthtomonth.
39.
Themonthlybudgetexecutionevolvedfromslowatfirsttomassivebyyear-endforallexpendituresexceptpayroll.
8Dataextractedfromthesystemformonitoringarrears,January2013.
9Accordingtoaninventorydonein2011andnotrepeatedsince.
10IMFprogramdatapresentedtotheExecutiveBoardinJanuary2013.
11DataculledfromthePREDsoftwarewiththefollowingscope:section610,paymentauthorizingagent610,allcategoriesofexpenditure.
Itwasnotpossible,duringthelimitedperiodinwhichtheMissionvisitedMali,toextendthescopeofthisstudytoallgovernmentexpensesbutthemissionencouragestheDGBtoconductthestudyonallministriesusingthemethodologyproposedinAnnexIII.
24Figure4.
FY2012,MinistryofHealth,monthlyvolumesofpaymentvalidationandpayments(CFAF)Bluebars:Payments/monthsRedline:Paymentvalidation/monthsXAxis:JanuaryMarchMayJulySeptemberNovemberJanuary40.
Availablecashcouldbarelycoverdepartmentalneeds.
Theyear-endincreaseofthevolumeofinvoicescausedasharpriseinoverduepayments(theredsurfaceareainthegraphbelow).
Figure5.
FY2012,MinistryofHealth,cumulativevolumesofpaymentvalidationsandpayments(CFAF)OutstandingpaymentsRed:CumulativepaymentvalidationsBlue:CumulativepaymentsXaxis:JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuary41.
Theamountofpaymentsarrears(inthesenseoftheWAEMUstandards)hasincreasedconsiderably.
Thevolumeofarrearsiskeptwithinanannualaverageof4.
2percentoftheministry'soverallexpenditure(includingwages),howeveritpeakedat6.
6percentonOctober31,2012.
01,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,000JanvierMarsMaiJuilletSeptembreNovembreJanvierPaiements/moisPJ/mois25Figure6.
FY2012,MinistryofHealth,Arrearsatmorethan90Days(CFAF)AnnualAverageBluecolumns:Mar1,2012toDec1,2012RecommendationInthecontextofareturntobetterfortuneswiththeresumptionofforeignfinancing,thegovernmentcanprioritizedisbursementstotakeaccountofthedepartments'capacitytore-commitexpensesandtheTreasury'scapacitytodisburse.
Inthatcontext,prioritiesshould,logically,bescheduledasfollows:-Reframeandprioritizeappropriations,inparticulartheoneslinkedtotheforeignfinancing,throughaLFR.
-Maintainmandatoryexpenses(wagesandpendingcommitments).
-Reduceliabilitiessuchasdomesticandexternalarrears,andresumeclearingcommitmentstobanksaccordingtothesuspendedplan.
-Resumepublicinvestmentstartingwithcommittedinvestments.
-Graduallyresumeoperatingexpenses.
B.
Monitoringpaymentsarrears42.
Thegovernmentimplementedmonitoringpaymentsarrears,butthepolicyneedsfurtherimprovement.
Thismechanismtracksarrearsfromformalreceptionofinvoicesbythepaymaster,fardownstreamintheexpendituresequenceaftertheinvoicehasbeenvalidated,authorized,approved,andtransmittedtothepaymaster.
Therefore,themechanismisnotabletotrackarrearsaccordingtotheWAEMUdefinitionandthegovernment'sstipulationsinitsletterofintent,12whichprovidesformonitoringarrearsfromvalidationofinvoices.
12TransmittedtotheIMFManagingDirectorinJanuary2013.
26RecommendationMonitorarrearsfrominvoicevalidation(seeAnnexIII).
Box5.
MonitoringofpaymentsarrearsfromthevalidationofinvoicesThischartsummarizesthekeypointsformonitoringpayments.
Afterthepaymenthasbeencommittedbytheauthorizedauthority(afterapprovalbytheCF)thedebtoccurswhenthegoodsorservicesaredeliveredasordered.
Thisstepistraditionallycalled"validation.
"Topayfortheexpenses,afterapprovalbytheCF,andtheauthorizedauthoritythenissuesaninvoiceandregistersitinthefinancialinformationsystem(PRED).
Theinvoiceissenttothepaymasterforitsprocessing(reception,checking,bookkeeping,andfinalpayment),AccordingtotheWAEMUandIMFstandards,arrearsarevalidatedinvoicesthatarenotpaidwithin90days.
ThemechanismimplementedbytheTreasuryhaditsweaknesses:1.
FromthePREDdatabase,theDGBconsideredinvoicescheckedbythepaymasterin2012,thatis,invoicesthathadbeenreceivedandchecked.
Withinthissample,theDGBdividedinvoicesissuedmorethan90dayspriorandnotpaid—CFAF15billion—frominvoicesissuedlessthan90daysprior—CFAF23billion.
TheDGBthenconsideredthefirstgroupasarrears.
2.
Thismechanismunderestimatestheamountofarrears.
Thestartingpointofthearrears'lagtimedoesnotincludeintheexpenditurechainpendingexpensesforwhichtheservicehasbeenprovidedbuttheinvoicehasnotyetbeenissuedortransmittedtothepaymasterorforwhichthepaymasterhasnotyetcheckedtheinvoice.
FortheMinistryofHealth,forexample,thetotalamountofunpaidpaymentordersreceivednomorethan90dayspriortotalCFAF4.
01billionandthosereceivedmorethan90dayspriortotalCFAF390million.
Proposedimprovements:GoodcooperationfromthePREDITteamallowedthemissiontousealltheMinistryofHealth'scommitmentsfiledforFY2012(4,032producingabout20,150acts).
ItreprocessedthesedatafromPREDusingthemethodologypresentedinAnnexIIIandwasabletoquantifythearrearsinaccordancewithWAEMU'sdefinitionatCFAF713million.
Forthisministry,theconversionofarrearsfromtheDGB'stotheWAEMU'sdefinitionmeantmultiplyingthembyafactorof1.
8.
WhenappliedtothewholescopeofFY2012governmentexpenditure,thismethodcanallowtheDGBtoquantifyarrearsmoreprecisely.
C.
Towardasmootherpaceforbudgetexecution43.
Theobjectiveistostepupvolumesofpaymentearlyinthefiscalyearandtolowerthevolumesattheendoftheyear.
ThepaceoffiscalyearobservedattheMinistryofHealth(seeabove)showsthatexpensestendtostagnateatthestartoftheyearandtakeoffattheend.
TheoriginofthiserraticpaceofexpenditureliesintheproblemsthedepartmentsInvoicesandPaymentsCommitmentsArrears=Outstandingpaymentsunpaidfor90daysaftervalidationCommitment+ApprovalbytheCFReceiptofthegoodorserviceInvoicesValidationApprovalbytheCFPaymasterprocess:Checkingandpayment27faceinstartingtheirfiscalyearandthefactthatalargenumberofinvestmentexpensesmustbecompletedwithintheFYeventhoughtheyareconstrainedbyalongprocurementprocessandbytheactualexecutionofthework.
However,theMinistryofEconomy,Finance,andBudgethasalreadytakenseveralmeasurestosmoothandfacilitatethebudgetexecution.
44.
Managershavebetterinformationontransfersofappropriation.
Accordingto2011FADrecommendations,thepossibilityofswitchingappropriationsacrossbudgetitemswithinthefiscalyearwasclarifiedbytwodecreesonOctober11,2012,ontransfers.
45.
AtcloseofFY2012managersweretentativelyallowedtocarryappropriationsforwardtothenextFY.
SpearheadingtheimplementationoftheWAEMUlegislation,thegovernmentauthorizedcarryingforwardthefollowing:pledgedappropriationssubjecttothecancellationofanequalamountforotheritemsinthenextFYbudget;investmentappropriationstoamaximumof10percentoftheinitialbudget,subjecttoavailabilityofcash.
Inbothcases,adecreefromtheMEFmustbeobtainedtoallowthecarryforward.
46.
Theauthoritiesmadeadvances,whichcouldeventuallyhaveanimpactonrevenue.
Astudywasconductedonimprovementinthecollectionofgovernmentpropertyrevenueandtheadoptionlawsonthecapitalgainstaxonrealestateconveyancesandonlandtaxes.
47.
Thewholeofgovernment'sinvestmentexpensescanhardlybecompletedwithintheFY.
Theycontinuetobegovernedbyappropriationnotificationsforthereceptionofgoodsandtherebyfollowalongprocessthatisdifficulttoimplementwithinasingleyear.
Thisisthemainreasonwhymanagersareusedtopushingthroughtheirlastinvoicesattheveryendoftheyear.
48.
Somecontractsexecutedoverseveralyearsneedbettermonitoring.
Commitmentandpaymenttimetablesarenotyettrackedbyacommitmentauthorizationmechanism.
However,therearepromisingsignsofimprovementinmultiyearexpendituremanagement:TheDGB'sconsideredimplementingthismechanismonanarrowscopeinFY2014.
TheMinistryofHealthtrackspaymentsonpreviouscommitmentsthroughatablerecordedbythestockaccountant.
49.
Itisproposedtopursuetheaboveinitiativestosmoothmonthlymanagementvolumes.
Thechallengeistoeasethepaceoftheyear-endexpensesbystartingoffthefiscalyearearlierandbyfollowinguponmultiyearcommitmentsandappropriations,whichrequiresimprovingmonitoringmultiyearcontracts.
RecommendationsShortenthesupplementaryperiodbystartingmanagementearlierinthefollowingyear(reformunderway);28Informmanagersoftheavailabilityoftheirappropriations(currentpracticeissatisfactory);Extendexistingpracticestomultiyearcontracts,soastoexecutepaymentsoverseveralfiscalyears,conditionaluponmonitoringmultiyearexpenses(acommitment-appropriationcontrolmechanismisbeingconsidered);Startthepracticeofcarryingforwardappropriationsforpendingexpensesattheendofthefiscalyear,subjecttocashavailability.
D.
Continuestreamliningtheexpenditurechain50.
Theexpenditurechainfollowsaconventionalprocedure(notification,commitment,approvalbytheCF,monitoringofwork,controlofdeliveries,paymentauthorization,bookkeeping,andpayment).
Thedecentralizationofpaymentauthorizationsisalmostcomplete,comparedwithothercountriesofthesubregion;thesectoralministersandregionalgovernorsaresecondarypaymentauthorizationagents(ordonnateurssecondaires),andthedirectorsoffinancialaffairs,directorsoffinanceandstocks(ministerialDAFandDFM),andtheregionalbudgetdirectors(regionalDRBs)actondelegationaspaymentauthorizationdelegates.
Theseniorpaymentauthorizationagent(ordonnateurprincipal),theMEF,13isupstreamoftheprocessandcanthereforeblockexpenditureupstream,ifnecessary.
51.
DelaysstilloccurintheexpenditurechainbutdonotexceedWAEMU'saveragetimelineforvalidationandpayment.
TheaveragetimefromcommitmenttopaymentintheMinistryofHealthisbetweenthreemonthsandoneweek.
Accountingoperationsrequirecloseto30percentofthattime.
ThelagtimeowingtotheinterventionoftheCFiscomparativelybrief(lessthan5percent).
Thedebt14"invoicesandpayment"stageisslightlylonger(52days)thanthe"commitment"stage(50days)andaccountsformorethanhalfofthelineitems,hencethepressingneedtospeedupspendingatthislevel.
13Theministersaresecondarypaymentauthorizationagents.
14Timebetweencommitmentandpayment.
29Figure7.
AveragelagtimesnotedattheMinistryofHealth52.
Theintegrationofaccountingandfiscalinformationsystemswascontinuedpursuanttotherecommendationsmadein2011.
ThedeploymentofPRED5issatisfactory.
In2013,71siteswereconnected:DAFandDFM,financialcontrol,andDGBandDRBintheregionalcapitals.
Theinterconnectionofpublicinstitutionscontinues,therebyenablinginterfacesbetweencomputerizedaccountingsystems(AICE,and"DEPENSE")andthebudgetapplication(PRED5).
Progressaheadwouldconsist,ontheonehand,inreplacing"DEPENSE"byAICEforlessthan20percentofexpendituresand,ontheotherhand,properlyinterfacingtherevenueapplicationswiththebudget.
53.
Theadaptationofinformationsystems(IS)isparamounttoimplementingprogrambudgeting,consistentwiththeentirePFMsystem.
TheneedtopreparetheITmasterplanenvisagedin2011isurgent.
In2012,thisworkwouldhavebeenoutsourcedbuttheselectedcontractorwithdrewfollowingtheMarchevents.
Thestill-plannedworkonSDIispartofthe2013timetableforthereformplanPAGAM/GFPII.
54.
Thefinancialcomptroller,whosemethodsofinterventionhaveimproved,helpstosecurespending.
Hisdoubleintervention,firstbeforecommitmentandsecondbeforeauthorizationofthepayment,isadeterrenttopotentialmismanagement.
Tolimittheimpactonlagtime,thedecentralizationoftheCFcontinuedatasteadypacecoveringallregionsandministriesgoingforward.
Thechecksimplementedin2011improvedtheactualprovisionofservices.
Afurtherstep,recommendedbytheWAEMUharmonizedfiscalframework,willsimplifyex-antecontrols.
However,themissionproposesthatthecurrentproceduresberetainedintheshorttermfordomesticinternalcontrolsarenotsufficientlywell-developedtoensureproperuseofpublicfinance.
55.
Comprehensivefinancialcontrolsmustbestrengthenedbyaneffectivesystemofsupervisionandcontrol.
ThefunctionoftheCFiscrucialintheexpenditurechainbecausetheCFactsfromtheoriginofexpenditure(commitmentapproval),totheapprovalofinvoices(certificationofactualdeliveries),andthelastphasebeforepayment(approvalforpaymentauthorization).
Giventhehighstakesinvolvedintheiractions,controllersarebynomeansprotectedfromsolicitation.
ItisthereforeimportanttostrengthencontroloftheCFduties.
TheAuditorGeneral(BVG)planstoconductsurveysoffinancialcontrol.
Commitment+CFApprovalReceiptofthegoodorservicePaymentAuthorizationApprovaloftheCFPaymentstageInvoicesandPayments52.
33CommitmentStage49.
5411.
16days38.
4days19.
2days4.
7days28.
4days30RecommendationsMaintainexistingfinancialsupervisionarrangementsintheshortterm.
StrengthensupervisionofCF,inparticularthroughBVGsurveys.
E.
Improvetheexecutionofexpendituresbytype56.
Theconventionalprocedureforregularexpensesislargelyeffectivealbeitsusceptibletofraud.
Inhisannualreport,theAuditorGeneraloftenpointsoutfraudulentpractices,manyofwhichoccurintheexpenditurestages.
Bettersupervisionandstreamliningofprocessesanddelays15(particularlyintransmittingpaperdocuments)canhelpreducethesebadpractices.
57.
Wagesareregularlypaidwithpriorpaymentauthorizations,butpaymentsarenotproperlysecured.
Compensationisdepositedinthebanksasalumpsumwithalistoftheemployeestobepaid.
Thebanksareinchargeofdepositingthepaytotheemployeeaccountstheyhold.
Thisformofindirectpaymentsgivesnoassurancethatthepaywillactuallyreachtheendrecipient.
Thesamecanbesaidfor"billetage,"whichconsistsofhiringacashpayer(billeteur),whowouldpaywagesagainstareceiptfromtheemployees.
Inbothcases,thegovernmentcannotascertainthatallpaymentshavereachedtheirproperrecipients.
RecommendationsIssuepayrolltransferorderstobankswithaspecificbreakdownofemployeesandorganizereportsfromthebanksontheactualpaymentofthesalaries.
Depositsalariesinthebankstoreducethepracticeofusingcashpayersandstrengthentheirsupervision.
58.
Easetheaccountants'operationsupstreamoftheprocess.
Priortheactualpaymentaccountantsmustrunacertainnumberofchecks.
Inacontextwherecashflowiscrucial,theycouldconceivablybesensitivetothelagtimebetweenacceptingthepaymentorder,completingcontrols,andcheckingtheavailabilityofresources.
Withthelikelyresumptionofforeignfinancingand,asaconsequence,asharpincreaseinthevolumeofexpenditure,itisexpectedthatthenumberofinvoiceswillrapidlyincreasetomeetthepressingdemandfromdepartments,andriskcreatingbottlenecksamongthepaymasters.
Itisthereforekeytoanticipatetherecoverybymakingeveryefforttoimprovethequalityandpaceofoperationsatpaymasters'offices.
15Expenditurestagesduringwhichoperationsaremomentarilyblockedfornoparticularreasonaresignsofvulnerabilitytocorruption,whichneedtobecarefullymonitored.
31Recommendation:Increasethepaymasters'stafftoimprovethequalityandspeedofcontrols.
59.
Controlsofforeign-financedinvestmentsshouldbestrengthened.
Controlsoverexternallyfundedinvestmentsaremorerelaxedthanondomesticresourcesdespitethemassivevolumeofexternalfunding.
About430investmentprojectsarebudgetedandexecutedwithintheinvestmentexpenditurebudget(BSI),whichistheannualtrancheofthethree-yearinvestmentplan(PTI).
Intheinitialbudgetlawfor2012,whichwasthelastreferencebudgetbeforeforeignassistancewasfrozen,only28.
4percentoftheBSI'sCFAF460billionweredomesticallyfinanced(CFAF130billion).
TheotherCFAF328billionwasexternallyfinanced—53percentwithloansandtherestwithgrants.
Giventhelimitedtimethemissioncouldspendonthistopics,someofthebelowrecommendationsaremerelyexploratory.
However,withaidabouttoresume,itisessentialthattheBSImanagementbeevaluatedbyexpertssothatdonorsbereassuredthattheirfundsarebeingproperlyusedandthatMalicanbetterdeveloppublicinvestmentstoleveragegrowth.
60.
Theselectionandplanningofinvestmentprojectscanbeimproved.
Projectsareselectedandthenincludedinplanningonthebasisofaformalpolicydocumentagainstcriteriaofvaryingimportance,butconformitywiththesecriteriaisoftenpoorlydocumented.
RecommendationsSignificantlyreducethenumberofselectioncriteriagivingpreferencetothosethataremeasurableandreviewonlydocumentsthatarecomplete.
Includeeconomicandfinancialcriteriatoensurethatselectedinvestmentprojectsaresustainableovertimeandoptimizerelatedappropriations.
61.
Strengthenthebudgetingofdonor-fundedprojects.
Somestandardizedprojectdocumentshavealmostnocontentandmostarenotup-to-datewhentheyaredue,preventingthegovernmentfrommakinginformedchoices,therebyhamperingefficientresourceallocationinthebudget.
62.
Projectsmusthaveresults.
Pastcontractsreachingcompletionshouldbescrutinizediftheyseemunnecessarilycostly.
Onepossiblemethodwouldbetoassessthecompletedprojectsintermsofbudgetexecutionwithrespectto(i)nationalandforeigndisbursementscomparedtoprojections;(ii)capitalspendingcomparedtooperationcosts;and(iii)theprojects'achievements(infrastructurebuiltcomparedwithplans,resultsachievedcomparedwithexpectations).
Consequencesshouldbedrawnfromthisanalysisbeforeextendingtheinitialtimetable.
Asanoverarchingrule,allprojectsuponcompletionshouldbesubjectedtoanexpostevaluationtoverifytheirresults.
32RecommendationsReinforcetheBSImanagementcapacity(toolsandmethods),bythefollowingactions:appraisingtheprojectdatabaseoftheNationalDirectorateofPlanningandDevelopment(DNPD);mappingandimprovingtheISusedbythelinedepartmentsandthedonors;enhancingthetrainingofnationalprofessionalsandprovidingthemwithstandardizedinstruments,particularlyforreporting;andstrengtheningthecoordinationoftheDNPDwiththelinedepartments.
Enhancefollow-upbyorganizingregularinspectionsonprojectimplementation,bypermittingassessmentbureaustocancelcontractsintheeventofpoorpractices,andbyfendingoffundesirablepracticesthroughrandominspectionsinsitu.
Improveprojectevaluationbefore,during,andafterprojectimplementation.
Thiswillfurtherimproveselectionofprojects,allowinterimassessmentpriortocontractextension,helpcompleteprojectswithinreasonabledeadlines,andfacilitateafinalassessmentofresults.
III.
PACEOFIMPLEMENTATIONOFPARTIALLYINTERRUPTEDREFORMSA.
Quantitativetallyoftheimplementationof2011FADrecommendations63.
Understandably,theimplementationof2011recommendationshasbeenputonhold.
However,theMinistryofFinancelargelypreventedbacktrackingandevenmadesomelimitedprogress.
Theframeworkdescribedbelowtakesstockoftheimplementationoftheserecommendations.
33Box6.
Quantitativeassessmentofimplementationofthe2011recommendationsOfthe65recommendationsmadebythe2011IMFFiscalAffairsDepartmentmission47werecompletedin2012and2013.
Recommendationsmainlycoverprogrambudget(PB)anditsdirectcorollaries(managingreforms,transcribingdirectivesintonationallaw,andbudgeting)buttheyalsocallforstrengtheningthePFMbasicssuchasaccounting,cashmanagement,andinternalandexternalcontrol.
Legend:Heading:TypeandNumberofRecommendationsBluecolumns:1)LegislativeandRegulatoryFramework,2)CoherenceofFiscalInstruments;3)InternalandExternalAudits;4)Budgetexecution,5)CashManagement;6)ManagementofAgencies.
Thelevelofimplementation1/(1.
66/3.
00)islowerin2013thanitwasin2011(1.
93/3.
00)yetachievementsweremaintained.
Facedwith2012eventsandwiththescarcityofresources,cashmanagementdevelopedconsiderablyandcontrolsimprovedthroughthegradualimplementationofthenationalinternalcontrolstrategy(SNCI).
Theimplementationoffiscalinstrumentsreacheda1.
5level.
Howeverthemissionnotednomajorbacktrackinginreforms.
Owingtoashiftinpriorities,noprogresshasbeenmadeinaccountingandmodernizingthelegislativeandregulatoryframework.
Legend:Heading:AverageLevelofImplementationbyCategoryLabels(clockwisefromtopofhexagon):1)Strengtheningaccounting;2)Legislativeandregulatoryframework;3)Coherenceoffiscalinstruments;5)Internalandexternalcontrols;6)BudgetExecution;6)Cashmanagement1/Methodology:eachrecommendationwasevaluatedonascaleof1(notimplemented)to2(inprogress)and3(completed).
Recommendationstobecompletedafter2012werenotincludedinthescore.
Theoverallratingisanon-weightedaverageofthescoresforeachrecommendation.
0123AmeliorationdelacomptabiliteCadrelegislatifetreglementaireCoherencedanslesinstumentsbudgetairesControlesinterneetexterneExecutiondesdepensespubliquesGestiondelatresorerieNiveaumoyendemiseenoeuvreparcategorie0510152025Natureetnombredesrecommandations34B.
Incompletedevelopmentofthelegislativeandregulatoryframework64.
TranscribingWAEMUdirectivesintonationallawischallengedbythearchitectureofdomesticlegislation.
InregardtotheConstitution,thecountrymustadoptatleasttwoorganiclaws:onetotranscribetheLOLFdirective16intoafinanceresponsibilitylaw(FRL)with,amongothers,provisionsrelatedtothecountry'scommitmentintheconvergence,stability,growth,andsolidaritypact;andanotheronetotransposetheTransparencydirective17asalegalcodeforpublicfinancialmanagement(PFM).
Bothorganiclawswillgroundanyfurtherlegislationrelateddirectlyorindirectlytogovernmentfinance.
Asforthecentralgovernment,theupcominglegislationwillcoverthebudget,publicaccounting,budgetclassification,thechartofaccountsortheGovernmentfiscaltable;and,lastly,forlocalgovernments,thechartofaccounts.
Box7.
RisingissuesintranscribingWAEMUdirectivesintonationallawAlogicallegalsystemwouldrequirethatthedirectiveonbudgetlawsbetransposedthroughanorganiclawthatgroundstheregulationonpublicaccountingandtheannualbudget.
Inthisrationale,textstransposingclassificationdirectives(budget,chartofaccounts,andGFStable)wouldderivefromthepublicaccountingregulation.
However,Article70oftheMalianConstitution1/favorsregulationtorulethebudgetinsteadoflegislationatordinaryororganiclevel.
Paradoxically,underthesamearticle,therulesofpublicaccountingareexplicitlygovernedbylaw.
Toovercomethisproblemthegovernmentinitiallyconsideredthreeoptions:Option1:FileanordinarydraftlawonthebudgetandthenraisethelevelofthislawaftertheConstitutionisrevised.
Option2:SubmitadraftorganiclawconsideringthatthisprocedurewouldbelegallymorebindingforthegovernmentthantheonefavoredbytheConstitutionandwouldtherebynotviolatethespiritoftheConstitutioniftheAssemblyagreeswiththeprocedure.
Thisoptionwouldrequireapriorlegalstudy.
Option3:WaitfortherevisionoftheConstitutionbeforesubmittingadraftorganiclaw.
1/Memorandumitem:theonlyreferencetopublicfinanciallegislationmentionedinArticle70oftheConstitutionoutliningthescopeofthelawisthefollowing:"thelawdetermines[…]thefundamentalprinciples:[…]ofgovernmentaccounting.
"ThereisnootherreferenceintheConstitutiontoanorganiclaworganizingthepreparation,content,andapprovalofthebudgetlaw.
65.
Thegovernmentismakingupforlosttimeintranscribingdirectives.
Thetechnicalworkiseitherfaradvancedorcompleted.
Thecommitteetomonitorandimplementthedirectivesestablishedin2010hasendorsedthedraftFRLandthePFMtransparencycode.
Keyregulationsarealsoready;Directiven°08/2009/cm/WAEMUofJune26,2009onbudgetclassification,forexamplewillbetranscribedthroughadecreeyettobesigned.
16Directiven°06/2009/CM/WAEMUestablishingthebudgetlawsinWAEMU.
17Directiven°01/2009/CM/WAEMUfortransparencyinPFMwithinWAEMU.
3566.
Thegovernmentoptedtofileadraftordinarylaw.
ConsideringsettingupareferendumtorevisetheConstitutionasamajordifficultyatthisjuncture,thegovernmentdecidedfirsttotransposethetransparencycodeandthedirectiveonthebudgetasordinarylawsand,lateron,toupgradetheselawstoorganiclawwhentheConstitutionisrevised.
67.
Thiscouldtakeplaceinthefirsthalfof2013.
Thetwopre-draftlawswereendorsedbytheCabinetinNovember2012andtheNationalAssemblywouldexaminethembeforetheendofthecurrentlegislaturesession.
18Thedraftlawonthebudgetwillbeplacedontheagendaandtheoneonthetransparencycodewillberaisedshortly.
Thecompletetranscriptionofdirectivesintothedomesticlegalandthederivedregulationsshouldbecompletedbyend-2013,twoyearsafterthedeadlinesetbyWAEMU.
68.
NooptionisenvisagedforupgradingtheFinancialAuditSectionoftheSupremeCourt,whichposessimilarlegalproblems.
RecommendationsEnsurethatthePFMregulationsarepublishedassoonasthelawsareadopted,sothattheycanbeimplementedintimeforFY2014.
Facilitatethelegalframeworkimplementationwithinstructionsandguidestoensureaquickandlargebuy-inandtofosteritsuse.
C.
Holdinggroundinthereformoffiscalinstruments69.
Atimetableforthebudgetpreparationwastimelydisseminatedbutthebudgetpre-debate(DOB)heldin2011wasnotrepeatedin2012,becauseofinstitutionalinstability(suspensionofinstitutionsafterthecoupd'état).
NonethelesstheDirectorateGeneralofBudget(DGB)reframedthemedium-termfiscalframework(MTFF),(typicallyusedastheplatformfortheDOB)takingintoaccountsuspendedforeignfinancingandplummetingrevenue.
Thebudgetlawandallitsrequiredappendiceswereeventuallyvotedincompliancewiththeconstitutionaltimeframe.
70.
Theprogrambudget(PB)documentationimprovedwithareductioninthenumberofobjectivesandindicatorsforeachprogram,butitwastechnicallyimpossibletoproperlyappropriatethebudgetbyprogramgiventheuncertaintyoffiscalresources.
71.
Theimplementationofcommitmentauthorization(AE/CP)startedfordomesticallyfundedpublicinvestments.
TheDGBplanstoexpandthisapproachwithinthe2014budget.
However,technicalassistancewouldbeusefultoencouragethisnascentreform.
18Duringthemission'svisit,thetransitiongovernmentannouncedthatelectionswouldbeheldinJuly2013.
3672.
Publicpolicyreviewswerenotlaunchedbutthecontrolbodiesembracedthisnewfunction.
TheBVGandthepublic-servicesupervisoryoffice(CGSP)begantoconsiderwaystobuildcapacitytoassesspublicpolicy(BVG)andtoevaluatetheperformanceofCGSP.
RecommendationsContinuetoimprovethePBoftheministriesbasedontheprogramreviewconductedin201011.
StrengthenthecapacityoftheBVGandtheCGSPtoassesspublicpolicyandtheperformanceofpublicutilities.
D.
Slowimprovementsinfiscalreporting73.
Despitetheongoingrolloutofthecomputerizedaccountingsystemtherehasbeenlittleprogresstowardimprovingaccounting.
Duetotheverydifficultcontextof2012,theJanuary2012FADrecommendationshavebeenputonholdandarestillapplicable,albeitaccordingtoanupdatedtimetable.
74.
Draftregulationonaccounting(RGCP),andthegovernmentchartofaccounts(PCE)havenotevolved.
TheywouldbepublishedfollowingthetranscriptionofWAEMUPFMdirectives(transparency,budgetlaws,andgeneralaccountingprinciples)intolawin2013.
75.
TherolloutoftheAICEwascontinuedin2012andinto2013.
ThenewsystemalreadyimplementedintheofficeofthePaymasterGeneral(PGT)inearly2011,wasrolledoutinthedistrictofBamakoTaxcollectorOffice(RGD)in2012andthen,inearly2013,intheregionaltreasuryofKoulikoro.
Thisoccurredaftertrainingtreasuryunitsinmid-December2011andinOctober2012.
Foratemporaryperiodtheoldandnewsystemskeptrunninginparallel.
76.
TheAICEsystemwaseasytohandlebecauseofitssimilarityinstructuretoMicrosoftsoftware.
IntheRGD,interfaceswiththerevenueapplicationsoftheDGI(ISGTAS)andtheDGD(ASYCUDA)weretentativelyimplementedinearly2012thenblockedinMarchof2012.
Technically,theinterfacesdofunctionbutarenotfullysynchronizedwithAICE.
InKoulikoro,theinterfaceswiththeDGIandDGDapplicationsarenotoperationalyet.
TheinterfacewithPRED5(thebudgetexpendituremanagement37system)isactive.
19TherolloutofAICEintheACCTwasscheduledforearly2014pendingto2013worksonanalytics,concepts,developmentandimplementation.
77.
ContinuetorolloutAICEiskeytoimprovethequalityofthegovernmentaccounting.
ItsimplementationintheACCTisaparticularlyimportantsteptofacilitatefiscalreportingatthenationallevel,withtheproductionoffinancialandstatisticalstatements(inparticulartheGFSTable).
78.
Itisproposedthatthetechnicalassistance,suspendedsince2012,resumetorolloutAICE.
TheMEFBbenefitedfromIMFtechnicalassistancefinancedbytheKingdomofBelgiumtodevelopandimplementthissystem.
TheassistancewassuspendedinMarch2012butitcouldresume.
Theresumptionofthisproject,whichhadbornefruituntilitwassuspended,seemscriticalforconsolidatingthedeploymentofAICE.
79.
Thecreationofaninter-departmentalITcoordinationunitisstronglyrecommendedtohelpasfollow:steerandmonitordesignanddevelopment,interfaces,andintegration;adapttochangesintheaccountsincompliancewiththePCE;andtrainITteamstoensurebuy-inandmaintenanceofappropriateskills.
80.
Theproceduretocentralizeaccounts(allsubaccountsincluded)inthemonthlybalancesheetsiscumbersome.
ThebalancesissuedfromAICEmustbemanuallyre-capturedintotheACCTtables(pendingtherolloutofAICEintheACCT).
TheaccountsofcustomsandtaxcollectorsattachedtotheRGDarestillkeptinsingleentryformandmustbemanuallyinputtotheRGD'saccounts.
Thesenioraccountantsstillcentralizetheirrelatedaccountants'reportsonhardcopyandre-capturethesedatainAICEmanually.
Furthermore,TreasurybuildingsintheNorthernTerritorywerehardhitandmustberebuilt.
81.
Thepracticeof"addingondaystothemonth"hasanimpactonthereliabilityandqualityofaccountingandfinancialdata.
Thepracticeofsendingnumerousinvoicestopaymastersaroundthe25thofthemonthtocatchupwithmonthlyfiscaltargetsisstillwidespreadanddelaysmonthlyclosings.
82.
ThemonthlybalancesheetisdeliveredafterthedeliverytimefixedbytheACCT(45days).
TheannualbalancesheetisusuallyfinalizedinApril/MayofN+1.
Delaysinproducingthegovernment'sbalancesheetdohaverepercussionsonthefinancialstatement.
AtthetimethemissionwasinMali,thetreasurywasunabletoproduceanybalancesheetforend-2012,evenatentativesheet.
19Theinterfaceiscurrentlytwo-way:itallowsPRED5documentstobefedintoAICEandviceversa,iftheyarerejected,withoutrequiringreentry;italsoallowspaymentorderstobeunwoundinPREDshowingtheircurrentstatus("acceptedbytheTreasury"or"Paid").
3883.
ThemonthlybalancesheetisdeliveredafterthedeliverytimefixedbytheACCT(45days).
TheannualbalancesheetisusuallyfinalizedinApril/MayofN+1.
Delaysinproducingthegovernment'sbalancesheetdohaverepercussionsonthefinancialstatement.
Atthetimethemissionwasin,thetreasurywasunabletoproduceanybalancesheetforend-2012,evententative.
84.
Stockandassetsaccountingisbeinggraduallyimplementedandrolledoutasplanned,withnewsoftwarebeingcurrentlydeployedforlinedepartments'managers.
Atthetimeofthemission'svisit,41officeswereusingthesoftwareandsomewerebenefitingfromtrainingsessions.
Thisrolloutisessentialfortheimplementationofaccrualaccountinginthemediumterm.
RecommendationsResumetechnicalassistanceandsecuredomesticfundstocontinuetherolloutofAICEintheACCTandtheregionsaccordingtotheexistingagenda.
Thefollowing2011recommendationsstilllargelyapply:(1)reducethesupplementaryaccountingperiodtoonemonthaftertheendofthefiscalyear;(2)improvethequalityofaccountingbyclearingspecificaccountsintheledger(reciprocal,third-party,andfinancialaccounts);(3)deliverinduetimemonthlyandannualbalancesheets;(4)continuetorolloutstockandassetaccountingtoinventoryfixedassets(governmentproperty),stocks,andliabilities,toultimatelyprovideanopeningbalance.
E.
Poormanagementofautonomouspublicagencies85.
Themissionnotedlittleprogressinthismedium-termreform.
Thebudgetlawfor2013creatednewagenciesandofthe100-oddautonomouspublicagencies(EPAs)inexistence,onlynineregularlyproducefiscalreporting.
Thedisseminationoftheagencies'chartofaccountshasnotstartedandthelegalregimeapplicabletoEPAshasremainedlargelyunchanged.
Thegovernmenthasseeminglygivenuptheseworks,despitetheirbeingdeemedcrucialsince2008,therebyhamperingbudgetcomprehensivenessandqualityofreporting.
RecommendationsThe200911recommendationsstillapply:(1)ensurethatEPAsregularlysubmitquarterlyreportsonbudgetexecutionandfinancialriskstotheDGB,totheDNTCP,andtothelinedepartmentAdministrativeandFinancialDirectorate(DAF)concerned;(2)widelydisseminatetheDNTCP'schartofaccountsdesignedforEPAsandmakeitsusemandatory;and(3)extendthepracticeofresult-basedmanagementagreements(basedonresultsandverifiableindicators)withagencies,onavoluntarybasis.
Inthelongrun,thegovernmentshouldclarifyitspolicyrulingtheestablishmentofnewagencies,andensuringagencies'fiscalandfinancialautonomy.
Itshouldalsodeploya39consistentmanagementsystemforagencies,inwhichtheexecutionofexpendituresisstreamlinedthroughtheappointmentofasinglepaymasterperagency,specificallythepaymastercurrentlyhandlinggovernmenttransferstotheagency.
F.
Developmentofexpostcontrols86.
Expostcontrolsareperformedbythreeagencies:externalcontrolisperformedbytheaccountingsectionoftheSupremeCourtandbytheAuditorGeneral;internalcontrolisperformedbythegeneralsupervisoryofficeforthecivilservice,assistedbycontrolbodiesinthelineministries.
AccountingSectionoftheSupremeCourt87.
TheaccountingsectionoftheSupremeCourtisphasinginits2009strategyforcheckingaccountants'financialstatements.
Ledgersfrom1960to1991,whichcouldnotbeexaminedbecauseofthelackofkeydocumentation,wereclearedunderthelawofJanuary2013(notyetpromulgated)withthedualadvantageoffinallysettlingancientledgersandreducingthenumberofstatementstobereviewed.
Seniorgovernmentaccountants'ledgersfrom1992through2008arebeingreviewedandauditors'opinionswillbeissuedfollowingthepromulgationoftheJanuary2013law.
88.
Thereviewofpost-2008accountscouldnotyetbeundertaken.
Box8.
Progressclearingaccountsfrom1992through2008Ithadbeendecidedthattheaccountsfrom1992through2008wouldbeadministrativelysettled,followingasummaryreview.
Thetablebelowshowsthat,technically,thesettlementoftheaccountsoftheallgovernment'smainaccountants,and2percentofthelocalgovernmentaccountants,hasbeencompleted.
Thesettlementofaccountsforthepublicentities,however,hasnotyetbegun.
AccountantsAccountsProblemsProgressMaingovernmentaccountants11186in46groups46technicaljudgmentsreadySenioraccountantsofthelocalauthorities7614566Only77percentoftheaccountsidentified98technicaljudgmentsreadyEPAaccountantsNotpreciselyknownNotpreciselyknown85EPAsidentifiedin2011,ofwhich39havesubmittedtherequestedfiscalreportsNoneComments:Givendifficultiesininventoryingandcollectingdatafromlocalgovernmentsand,aboveall,EPAs,priorfacilitatingactionsareneededfromtheMEF.
ThescopeofthereviewoftheseniorgovernmentaccountantswillencompassgovernmenttransferstoEPAsbutnottheEPAs'ownresourcesmanagement.
89.
LegalstrideshavebenefitedtheAccountsSectionalthoughitisstillfacingseriousdifficultiesindevelopingasaSupremeAuditInstitution(SAI).
Theincreaseofthesection'sstaffingandtheimprovementofitshiringpolicieshavebeenapprovedbylaw.
40Conversely,thedraftlawonthestatusofitsmembershasbeenonholdsince2011,thushamperingthedevelopmentofthesectionintoanSAIwhenaforthcomingrevisionoftheConstitutionallowssuchaconversion.
90.
TheSection'sresourcesarestilllimitedalthoughitsneedsintrainingandcapacityreinforcementareconsiderable.
Thisreformstillneedsbetterprioritizationinthegovernmentagenda.
91.
Thesection'sbranchchargedwithenforcingbudgetarydiscipline(CDBF)shouldbecomeoperational.
TheCDBFisgroundedonthesection'slegalstatus,tostrengthentheframeworkofmanagementaccountabilitywhichisparamountinthestruggletofendoffbudgetmismanagement.
RecommendationsIntheshortterm,boosttheresourcesoftheAccountsSectionsothatitcanperformitsnewmissions:certificationofgovernmentfinancialstatement;reviewofthedraftbudgetreviewlaw(LdR).
OperationnalizetheCDBFasrapidlyaspossible.
JointlywiththeMEF,organizecollectingneededEPAs'andlocalgovernment'sdataandimprovetheirreliabilitytoallowtheSectionperformitstasksinthelongerterm.
20OfficeoftheAuditorGeneral92.
TheBVG'sscopeisbroadrangingfromcertifyingthequalityofthefiscalreporting(accuracyandsincerity),toverifyingperformance.
Heisthereforeabletodetectirregularities,fraud,andmismanagement.
In2011,hisinvestigationsof13spendingunitsincludedninefinancialauditsandoneperformanceaudit.
93.
ThescopeofhisauthoritywasrecentlyextendedtoevaluatingpublicpolicyunderthelawofFebruary8,2012.
94.
TheBVGcapacitiesfosterhiscredibility.
Heisanexternalauditor,independentofthegovernment;hesetshisownagenda,andreferscasesdirectlytotheattorneygeneral.
Hisresourcesareample,hismanagementstrict,andhisemployeeswelltrained.
ComptrollerGeneralofthecivilserviceandministerialinspections95.
TheComptrollerGeneralofthecivilservice(CGSP)coordinatesimplementationofthenationalinternalcontrolstrategy.
Thisstrategyisimplementedin20MissionstosupervisemanagementoftheEPAsandissuejudgmentsontheaccountsmanagedbyEPAaccountants.
41thelineministriesbysupervisorycommitteestooverseethequalityofinternalauditscarriedoutbythelineministries'internalcontrol.
TheCGSPsupervisesandcoordinatestheinternalcontrolthroughharmonizedagendaandjointmissions.
96.
Ariskmanagementapproachisbeinggraduallyimplemented.
InNovember2012,TheCGSP,withthesupportoftheWorldBank,organizedtraininginarisk-basedapproach.
Twopilotministrieswereselected(HealthandEducation)andthreeothersshouldbenefitfromtrainingin2013(Transport,Equipment,andFinance).
SupportUnitforcontrolbodies97.
Thefollow-upofrecommendationsismonitoredbythecontrolbodiesthemselvesandaunitsupportingthesupervisorystructures(CASCA)establishedintheofficeofthePresidentoftheRepublic.
CASCAconsolidatesthereportsandcanrefercasestotheattorneygeneralforcriminalviolations.
Thereisstillroomtoimprovethemonitoringofrecommendations,particularlywithrespecttosharingpost-controlanalysisofexperience.
Thus,the2011recommendationaboutastudyofexternalcontrolbodiesstillapplies.
RecommendationsDevelopinformationsharingamongcontrolbodiesconcerningtheirrespectivemethodsandimplementtrainingfocusedontheuseofcommontools.
Mutuallyexchangeinformationdrawnfromauditswithtwooptions:(i)systematicallytransmitthereportsofeachstructuretotheothers,byestablishingoperatingunits;or(ii)useCASCA,addingtoitscurrenttask(e.
g.
,managementofallreportssenttothePresidentoftheRepublic)thetaskofdisseminatingmorecondensedanalysestothecontrolbodies.
Ineithercase,itisadvisabletopayparticularattentiontocasesofpoorpractices21flaggedbytheaudits.
Designateaunittoberesponsibleformonitoringtheplantocombatcorruption,specifythefrequencyofitsoperation,andotherdetails.
IV.
UPDATEPAGAMGFPIIWITHAVIEWTORESUMINGREFORMS98.
Thefollowingrecommendationsareintendedtoupdatethereformplanwithoutchallengingit.
Theapproachproposedbelowconformswiththe2011propositiontoincludeFADrecommendationsinthereformplan(PAGAMGF2)forimplementingtheWAEMUharmonizedfiscalframework.
Theapproach'srationaleistokeeptheplanunchangedexceptforanupdateofdeadlines(seeAnnexII).
21Particularlywithrespecttocorruption:AccordingtoajointreportoftheWorldEconomicForum,WorldBank,andAfricanDevelopmentBankoncompetitivenessinAfrica,corruptioninMaliisoneofthemaindrawbackstoprivatesectordevelopment.
42A.
CopingintheShort-termwithpitfallsfromthe2012crisis99.
Urgentactionmustbetakentorectifythepost-2012crisissituation.
Somerecommendationsquotedabovemustbeundertakenimmediatelyinordertocatchupin2013withthepaceofreformsachievedin2011.
Themainrecommendationsare:Starttograduallypoolcentralgovernment'scash;Anticipatetheresumptionofexternalfinancingbyreframingappropriationsthroughasupplementarybudgetandbyrevivingtheplantoclearliabilities.
Smoothbudgetexecutionin2013toabsorbforeignassistanceandfinancingforthiscrucialyearfortherecovery;Improvebudgetexecutioncontrol,inparticularthemonitoringofarrearsbasedonvalidation.
B.
Revisingthe2011actionplantimetable100.
Forthelonger-termreforms,theapproachproposedin2011isstillapplicable.
Althoughtheoverallreformpacewasslowerin2012,thePFMsystemdidnotsuffermajorsetbacks,andthereisnoneedtorethinktherationaleandthesequencingofthereformplan.
Themissionthereforeproposesmaintainingthesamesequenceofeventsproposedin2011whilerollingforwarddeadlines.
101.
ResumingtheimplementationofWAEMU'sfiscalframeworkshouldreachkeymilestonesinimprovingpublicservicesthroughasounderuseofpublicfinance.
The2011planwasgroundedonseveralkeypillarsandfourstrategicmilestonessubjecttocertainindividualprerequisites.
Themilestones(belowinbold),andtheirprerequisitesarethefollowing:SubmittotheNationalAssemblythedraftbudgetappropriatedbyprograms,whenthedirectiveshavebeentranscribedinnationallawandtheISadapted.
Devolvebudgetexecutiontomanagers,followingthegradualtransferofcapacitiestothelineministriesandtheestablishmentofanaccountabilityregimeforfinancialcomptrollersandbudgetmanagers.
Prepareanopeningbalance,followingthepriorimprovementofgovernmentaccounting,theinventoryofgovernment'sfinancialandnonfinancialassetsandliabilities,andtheintegrationofexpenditureandrevenuemanagementsystemonanaccrualbasis.
CertificationbytheSAIofthegovernment'sfinancialstatementtobackuptheparliament'sdebateonbudget,whichrequiresbuildingtheSAI'scapacitytoenableitfulfillitstasks.
43102.
The2012freezeinreformshasresultedindelayingtheachievementofthefourstrategicmilestonesbyoneyear.
Accordingly,theoverallproposedscheduleisnowasfollows:the2015budgetappropriatedbyprogramsby2014;thefirstopeningbalancebyend-2017;Devolutionofbudgetmanagementcompletedin2018,forafullfledgeddecentralizedmanagementin2019;Firstcertificationofthegovernment'sfinancialstatementbyend-2018.
C.
Createcross-departmentdynamicsforanoticeableimpact103.
PBshouldbeusedforitsverypurpose:toobtainmeasurableresultsbyimprovingpublicservices.
Todoso,lineministriesandspendingagenciesshouldbeencouragedtoinitiatethereformmomentum.
Thismobilizationmaytakedifferentforms:Ahigh-levelcross-departmentworkshop,recordingtheconclusionsofthegovernmentseminarheldin2011,wouldsensitizealldepartmentsabouttheimplementationofWAEMU'sharmonizedfiscalframework.
StrengtheningtheMEFBcapacitytomobilizedepartmentsandspendingagenciesthroughthematicworkshops,forexample;Asounderprogram-budgetframework,bycapitalizingonthefourprogramreviewsundertakenin2010and2011,andbyexpandingthescopeofthesereviewstocross-departmenttopics,suchasdecentralizationofbudgetmanagement.
104.
Duringthenextlegislature,thegovernmentshouldseizetheopportunitytoincreasetheinvolvementofnationalrepresentativesinthe2013budgetpre-debate.
Takingintoaccountthepoliticalagenda(theJulyelections),2013couldgiverisetoadiscussionaboutsensitizingrepresentatives.
Thediscussionshouldfocusonthebroadmedium-termstrategybasedontheMTFFandshouldcompleteinformingtheparliamentaboutongoingreforms.
Parliamentarians'capacitybuildingcouldbeenvisagedtopreparefortheupcomingrenewedbudgetdocumentation.
105.
Inthelongertermthegovernmentshouldundertakeperiodicreviewsofresultsoftheprograms'publicpolicies.
Suchreviewshavebeenconductedincountriesthatpracticeprogrambudgetingtodeterminetheeffectivenessandefficiencyofpublicpoliciesandtomakethenecessarypolicycorrections.
TheycouldbecarriedoutinMalibycross-departmentteamscomposedofauditorsfromlineministriesandtheMEF,undertheCGSP'scoordination.
44D.
Usethebudgetasleveragetoimprovepublicservices106.
Twomilestonesareplanned:In2014,theappropriationofthe2015draftbudgetbyprogram:thismilestoneconsists,incompliancewiththedirective,inpresentingthePBasthemainbodyofthebudgetlaw,toalloweachprogramtobevotedon.
Amongotherbudgetappendices,thegovernmentshould,duringatransitionalperiod,presentindicativeappropriationsaccordingtotheexistinglineitembudget.
Thisappendixwouldnotbesubjecttoavotebutwouldcontainusefulinformation,especiallywithrespecttolocalappropriationsbyregion.
Thedevolutionofbudgetmanagementin201822isintendedtomakeprogrammanagersprogressivelymoreaccountable,decentralizebudgetexecutiontoareasonableextentthatisfairlyclosetothecurrentorganizationofmanagement,andallowthebudgetmanagers,afteroneormorefiscalyears,topracticefungibilityofwageexpenditure.
E.
Aprogressivelymoreaccuratereflectionofthegovernment'sfiscalposition107.
TheWAEMUdirectivesprovidethreemaininnovations:Incomeandexpensesarerecordedastheyoccur.
Thismeansthatflowsarerecordedintheaccountsatthetimethecreditors'rightsanddebtors'obligationsareacknowledged;chartofaccountcategory9isthereforeeliminated,andinvoicesaredirectlyrecordedincategories6and7.
Allgovernment'sassets(fixedassets,stocks,cash,etc.
)andliabilities(loans,loanlossprovisions,andexpenses,etc.
)areaccountedfor.
Thegovernment'sassetsandliabilitiesarereportedinabalancesheetalongwithcontingentliabilities(orassets),whichmaygiverisetofuturecosts.
Publicaccountingismoresimilartotheprivatesystem,producingfinancialstatementstobecertifiedbytheSAI(balancesheet,incomestatement,cashflowstatement,andGFS).
Inthemediumterm,amorerealistic,regular,andcomprehensiveaccountingsystemcanplaythreeroles:asavectorofinformation,amanagementanddecision-makingtool,andsupportforsupervision.
Themissionproposesgraduallyimplementingthisnewaccountinginthreewaves:(1)intheshortterm,stabilizationofthemodifiedcash-basisaccountingsystem;(2)inthelongterm,introductionofaccrualaccountingandpreparationofanopeningbalancesheet;and(3)productionoffinancialstatements.
22Devolutionshouldbecompletedin2018andcouldbeappliedtothe2019fiscalyear.
45F.
Introduceanewaccountabilityframework108.
TheWAEMUdirectivesintroduceseveralchallenginginnovations,fortheinternalandexternalcontrolbodies.
Tofullybenefitfromtheseinnovations,itisproposedthatinternalandexternalcontrolsbedevelopedtoreachtwomilestones:(1)theAccountSectionoftheSupremeCourtdevelopsasanAuditCourtbyWAEMU'sdefinition,withthecapacitytoreviewandcommentonthegovernmentfinancialstatement;(2)framethemanagers'accountabilitywhenbudgetmanagementisdevolved.
109.
Figure8describestheupdatedapproach.
Itstaggerstheactionsneededtocreatecross-departmentdynamics,tousethePBasleverageforimprovingpublicutilities,toprovideatruerreflectionofthefiscalposition,andtorevisetheaccountabilityframework.
G.
Projectreformsoverthemediumterm110.
Theobjectivesprescribedbythemissionareambitiousbut,inlightoftheresultsobtainedbeforetheeventsofMarch2012,theyareachievable.
TheywillenableMalitosignificantlyimprovePFMand,intermsoffuturegrowth,togetthemaximumreturnonitsexternalfinancing.
Themissionrecommends(Figure8below)scalingthereformovertimeandnotundertakingthestrategicpolicyfocuses(bluecolumns)unlesstheprerequisiteshavebeenmet(arrows).
46Figure8.
Medium-termreformprojections2014201520162017201820192013Createcross-departmentdynamicsforanoticeableimpactUsethebudgetasleverageforimprovingpublicservicesAgraduallymoreaccuratereflectionofgovernmentfiscalpositionAnewaccountabilityframeworkMobilizationGovernment/ParliamentWAEMUtransposed2015BudgetLawApprovedbyProgramLF2015votéeparprogrammesAssessmentofthequalityofservicesandprogramperformanceTangibleimprovementinservicetothepublicCUTenplaceProgram-bugetuptostandardExecutetheprogrambudgetlikeanaveragebudget,providedthat-untiltheprerequisitesaremetMovegraduallytowardsprogram-basedexecutionDesignateprogrammanagersandstrengthentheirskillsandcompetencesLoanclassificationGraduallydecentralizepaymentauthorizationAuthorizefungibilityafteraconvincingfiscalyearInventoryassetsandliabilitiesandrecordexpenditureandrevenuebasedonoriginatingeventsAICErolledoutwithinterfaceDrawupandgradnallydocumentthefinancialstatements1stOpeningBalance1erbiland'ouvertureSubmitthefinancialstatementstothetheCourtandimprovethebalancesheetCadreComptamatièreInventoryofgoodscompletedBuildtheCourt'scapacityandmakethefiscaldisciplinecourtoperationalStatutesofthecourtandmagistrates1stCertificationoftheAccounts1erecertificationdescomptesImplementationofthenationalinternalcontrolstrategySystemofaccountabilityformanagersandCFdefinedTransferofcompetencestomanagersineffectLetransfertdescompétencesauxgestionnairesesteffectifSIbudget,adaptedultérieur47H.
CoordinateTechnicalAssistance111.
Manyoftheactionstobetakenrequirecoordinatedtechnicalassistance.
ThemissionmetwithdonorsatthestartandattheendofitsvisittoBamako.
Alldonorsagreedontheneedtoavoidduplicationortoleave"blindspots"(overlookingpartsofthereform).
Itwasthereforeagreedthatasimple,summarytechnicalassistancemapwouldbedrawnuptofacilitatecoordinationandsynergiesinthefuture.
112.
Twoblindspotsemergedfromthismap(AnnexI):DevelopmentsintheAuditCourtdoesnothavepropercoverage.
ApartfromthesupportprovidedbytheEuropeanUnionin2010,thereisnoupcomingproject.
Thepublicprocurementsectorhasapparentlybeenneglected;onlyoneprogramrunbyCanadahasbeenannouncedtodate.
113.
Foritspart,theIMFFiscalAffairsDepartmentplanstocontinueprovidingassistanceintheareasdescribedinBox9below.
Box9.
FADTechnicalAssistancefor2013–14TheFiscalAffairsDepartmentintendstocontinueprovidingtechnicalassistanceinclosecoordinationwithAFRITACWestinthefollowingareas:Assistancewiththeexpenditurechain:thismeansevaluatingtheexpenditureprocess,proposingefficienciestoimproveitseffectiveness,andconsolidatingtheimplementationofamonitoringmechanismforpaymentlagsandarrearsbytheMinistryofFinance.
MethodofevaluatingpublicpoliciesandPBperformance:theassistancewillseektoprovidetheBVGandtheCGSPwiththemosteffectivetoolsfortasksrecentlydevolvedtothem.
Theplanneddeliverableconsistsofageneralapproach,amethodofevaluation,andconcreteproposalsfortheirmanagement.
Cashmanagement:thefollowingisproposed:resumesuspendedassistancetopoolfundsintheTSA,selectionmethodsandcriteriaforrepatriationofEPAfunds,andassistanceinimplementingtheescrowaccountfornationalcounterpartfundsforprojects.
ManagementoftheBSI:expertadvicewillconsistofreviewingthemethodsandtheBSIdatabasetofacilitateitsmonitoring;reviewingthemethodsofprojectevaluationandmonitoringtomakecapitalspendingmanagementmoredynamic.
Managementofmultiyearinvestmentspending:thisassistancecouldbeledbyWestAFRITACtosupportimplementationofauthorizedcommitmentsandallocatedpayments(AE/CP)aswellasthemechanismforcarryingforwardappropriations.
48AnnexI.
MapofplannedtechnicalassistanceSECTORSOFTECHNICALASSISTANCEANDSUPPORTMultiyearprogramming,budgetpreparationExpenditureexecution,cashmanagement,andgovernmentstatisticsPublicprocurementRevenueSupervision,combatingfraudandcorruptionConsultantsorcooperationstaffpostedtoMaliFrance:onexpertinsupporttotheTC-PRSP+trainingsessionsinmanagementandmaintenanceofITnetworks,filing,andofficeautomationEuropeanUnion:specificTA,PRSP,CPShealth,education;contractendsJuly2013France:1expertassignedtotheTC-PRSPandtheSecretariatfortheHarmonizationofAid(SHA),supportforpreparingframeworksformedium-termexternalrevenueframeworksandMTFFsEuropeanUnion:PermanentTAprovidedtoINSTAT(capacitybuilding)Belgium/IMF:onelong-termexperttosupporttheTreasury(computerizationofexpenditureandaccounting,developmentoftheAICEapplication,supportforestablishingtheTreasurySingleAccount,improvingthequalityoftheaccounts)France:1ExpertassignedtotheDirectorateGeneralofTaxes(DGI)startinginthefirsthalfof20131ExpertassignedtotheDirectorateGeneralofCustoms(DGD)Canada:1.
Projecttosupportthemobilizationofdomesticresources(PAMORIII)Budget:CAD18.
5millionfrom2012–172.
SupportfortheBVGBudget:CAD6millionfor2008–15;OngoingcapacitybuildingprojectsAfDB:Aninstitutionalsupportoperation,intheamountof10millionunitsofaccountfordurationoffiveyears.
Theassessmentmissionisongoing.
AreasofsupporttobedeterminedwillbepartoftheactivitiesimplementedunderthePAGAMGFP.
WorldBank,TechnicalAssistanceProjectforFiscalGovernanceandDecentralization,period:2011–14.
49SECTORSOFTECHNICALASSISTANCEANDSUPPORTMultiyearprogramming,budgetpreparationExpenditureexecution,cashmanagement,andgovernmentstatisticsPublicprocurementRevenueSupervision,combatingfraudandcorruptionFrance:ScholarshipprogramfortrainingofvariabledurationinFrencheconomicandfinancialcolleges(Customs,Treasury,Taxes,andBusinessAdministration—ENA)about15000Eurosperyear.
France:CustomsComponentoftheJusticeandSecurityProjectintheSahelo-SaharanRegion.
SupportfortheDGD–Combatingfraudandwidespreadcrime.
147000Eurosover3years2011–13withthepossibilityofanextensionuntil2014.
Canada:Capacitybuildingprojectforsectoralbudgetarysupport(PRECABS)Budget:CAD3.
8million,period2009–12,willbeextendedupuntil2014.
AssistancetoCARFIPandtothreeministries(Finance,Education,andHealth).
DirecttechnicalassistanceIMF/AFRITACWestunderitsTrustFund,underIMFqualitycontrol,supportfor:thePB(completed),multiyearbudgetingofinvestmentspending(ongoing),fordebtmanagementandissuingdebtsecurities,andforgovernmentfinancestatistics(TOFE).
Canada:ProjecttosupporttheNigerOffice(PAON)publicprocurementarea,budget:CAD335000for2013–2017.
EuropeanUnion:Supportin2010fortheAccountsSectionforclearingtheaccounts.
JAPAN/IMF:Supportfortheprogram-budget,theMTFF,andbudgetexecution.
FinancingundertheJapanprojectsJsa1and4coveringWAEMUandECOWAS.
France:SupportfortheTOFEbenefittingtheDNTCP,DGB,DNPD,andTC-PRSP(withfinancingfromUNDPattheinitiativeoftheSHA/TC-PRSPExpert).
EuropeanUnion:ExpertisetomakethePAGAMmoreunderstandable(short-termTAofabout100,000Euros,exchangewithCARFIPinprogress);financingforthemid-termassessmentofPAGAM(about100,000Euros).
AuditsofthePFMsystemThe2010PEFAwasconductedwithdomesticfinancingandwiththeparticipationofdonors,inparticularthePEFASecretariat,theEU,IMF\,andWorldBankfortechnicalexpertise.
AnotherPEFAwillbecarriedoutin2013withtheparticipationofCANADA,theIMF,andtheWorldBank.
50SECTORSOFTECHNICALASSISTANCEANDSUPPORTMultiyearprogramming,budgetpreparationExpenditureexecution,cashmanagement,andgovernmentstatisticsPublicprocurementRevenueSupervision,combatingfraudandcorruptionConcessionalloansIMF:ECFprogramsuspended,but$18.
7milliondisbursedinFebruary2012undertheRapidCreditFacility.
ConcessionallendingisconditionaluponamemoranduminwhichtheMaliangovernmentagreestocomplywithstructuralbenchmarks,manyofwhichrelatetopublicexpendituremanagementandrevenuemobilization.
Overallfiscalsupport:matrixofindicatorscommontoseveraldonorsformonitoringandtriggeringdisbursementsAfDB:Ageneralbudgetarysupportoperationintheamountof40millionunitsofaccount,forwhichanassessmentmissioniscurrentlyinBamako.
DisbursementcouldstartinJune.
France:AninitialABGfor2010and2011(5millionEurosdisbursedin2010and5millionsin2011).
ThisABGcouldberolledoverThegeneralbudgetaryassistance(ABG)ismonitoredunderthecommonmatrix;theAFDmayauditthebudgetaryandaccountingproceduresforarandomsampleofexpensesin2010and2011correspondingtotheamountprovidedthroughtheABG.
EuropeanUnion:Generalbudgetaryassistanceconditionaluponanumberofindicators,someofwhicharelinkedtothePFMsystem,MDGContract,coveringtheperiod2009–14,currentlysuspendedbutmayberesumed.
PreparationofaStateBuildingContract(SBC)ongoing,budgetof250millionEurosannounced.
France:ABGmonetarydebtswap2010–13–31.
7millionEurosover2010–12(10.
4milliondepositedin2010,10.
8milliondepositedin2011and10.
3millionplannedfor2012butnotdepositedbecausetheMaliangovernmentdidnotmaketheinitialrepaymentofthistranche).
MonitoringunderthecommonmatrixofABGtriggersaswellastheMonetaryDebtMonitoringCommittee.
SectoralBudgetSupportFrance:ABSundertheeducationsectorinvestmentprogram(PISE)for2011and2012-1millionEurosdisbursedin2011and1millionEurosscheduledfordisbursementin2012butnotpaidbecauseofthecoupd'état.
Supportforgovernance:fromthePISECommittee,annualauditbyanindependentauditfirmselectedbytheRepublicofMaliwithnoobjectionfromtheAFDoraTFPwithrespecttotheauditfirmorthetermsofreferenceoftheaudit.
51AnnexII.
ProposalforUpdatingPAGAMGFP2IntermediateEffectsOutcomeDepartmentInvolvedMaturityPAGAMReferenceTANeedPAGAMReference,StrategicEffect2:QualityofbudgetpreparationandexecutionmeetsinternationalstandardsandprovidesgeneralaccesstobudgetarysupportThebudgetisconsistent,exhaustive,andcredibleContinuetoorganizebudgetpre-debatesandsensitizethenationalrepresentativesaboutthechallengesofthereform.
DGB20132.
1.
1TANewoutcomeproposed:ImprovethetoolsandmanagementcapacityoftheBSIEvaluateandimprovethebasisforBSImanagementandmodernizeitsbyimplementinganewapplicationImproveprojectevaluationexante,inprogress,andexpost.
EnhancemonitoringoftheworkperformedunderprojectsDNDP2013–14-TABudgetallocationsarebasedonwell-definedpoliciesandresults-orientedmanagementHarmonizemultiyearprogrammingdocumentswithWAEMUstandards(DPEB,DPPD,DAP,andRAP).
Definetheguidelinesforpreparingsectoralstrategies.
TakeanMEFdecreedefiningthetimetableforbudgettimetableandaccommodateitwiththetimetableforreviewingstrategies.
DGBDNPD20132.
2.
42.
2.
1TAInthelongerterm,periodicallyconductpublicpolicyreviewsunderpinnedbyprogramstoassesstheeffectsanddrawconclusionsfromthesereviewstoovercomeanyweaknessesfound.
(deadlineoutsidethecurrentPAGAM;thismeasurecouldbeincludedsubsequently).
MultidisciplinaryteamsStartingin2016-TATheexpenditureexecutionsystemfunctionswellandmatchesfinancialassetsMulti-yearcapitalspendingbudgetDGB20142.
3.
1TAStreamlinedexpenditurechain:identificationandeliminationofredundantcontrolsandotherbottlenecksimplementationofamechanismtomonitorlagsinpaymentlimitingthesupplementaryperiodtoonemonthDGBCARFIPDNTCPDNCF20132.
3TAEnhancescredibilityandtransparencyofthebudget:proceduresfordepositingpaymentordersprohibitedinvestmentexpensesusingexternalresourcescontrolledDGB2013–142.
3-Appointprogrammanagersandstrengthentheircapacity.
DGB+sectoralministries2013–15--ExecutethePBinitiallyonthebasisoftheresourcebudget.
2015–17--ExpenditureandcashThecomputerizedexpendituremanagementsystemisintegrated,interconnectedatalllevels,andadaptedtoresults-basedmanagement.
Pilot:CAISFF,DGB,DNTCP2013–142.
4/2.
4.
1---52IntermediateEffectsOutcomeDepartmentInvolvedMaturityPAGAMReferenceTANeedforecastsarebasedonanintegrated,high-performing,andsecureISSteertheISwithabroad-basedITteamdedicatedtoimplementingPBsAdoptastrategytograduallyadaptIStoprogrambudgetingDGI,DGD---DefinethescenarioforswitchingtheIStoprogrambudgetingTakestockofandmanagetherisksassociatedwithswitchingtheIStoprogrambudgetingCAISFF,2013–15----ConductimpactandfeasibilitystudiesoftheexistingIStoadaptthemtothePBreformDeveloptheexistingapplicationsTestthenewbudgetandaccountingclassificationinalltheISGraduallyrolloutthenewapplicationslinkedtoPBreformPilot:CAISFF,DGB,DNTCPDGI,DGD,PRECABS2013–14--------ConductastudydefiningasolutionorintegrationCAISFF2013–14-ThesecurityofISisassuredTheMEFhasamasterplanforIT2.
4/2.
4.
3-2.
4/2.
4.
4-CashmanagementprovidesquickaccesstofinancingatthelowestcostintermsofpublicexpenditureCentralizegovernmentfinancialflowsinasingleaccount:Updatetheimpactstudyonbankcapacitytosupportthetransferofthegovernment'sliquidassetstotheTSAReinstatetheTSA,initiallyforthebanksthatarecandidatesforthetransfer,DraftandagreementforkeepingtheTSAattheBCEAO,DefineastrategyforunifyingallthegovernmentaccountsopenedwithfullservicebanksDNTCP2013–142.
5.
1.
TAThecashplanisrevisedandimprovedCreateadatabasetotrackcashmanagement.
DNTCP2013–142.
5.
2.
1.
-Produceadailycashreport.
--Establishasystemforupdatingthecashplan,inparticularbyinstitutingaslidingcashplan.
20142.
5.
2.
3.
-Givenotificationofappropriationsandpreparecommitmentsinaccordancewithcashflowprojections.
DNTCP/DGB20142.
5.
2.
4.
-Createacashreserveforunexpectedexpenses.
DNTCPaprès20142.
5.
2.
2.
-Developthehabitofresortingtothefinancialinstrumentsbestsuitedtothegovernment'sneeds.
après2013-TAIntermediateEffectsOutcomeDepartmentInvolvedMaturityPAGAMReferenceTANeedTheaccountingframeworkmeetsinternationalstandardsTheWAEMUdirectivesongovernmentaccountinghavebeentranscribedintonationallaw.
DNTCP20132.
6.
1.
-Theadd-onaccountingperiodisreducedtoonemonthfromtheendofthefiscalyear.
2014--53Thequalityoftheaccountshasimprovedbyclearingspecificaccounts(Reciprocal,third-party,andfinancial).
Themonthlyandannualaccountbalancesareproducedwithintheregulatorytimeframes.
Theaccountsareclosedonadaily,monthly,andannualbasis.
2014–17--Anapplicablesystemwasimplementedandaccountsorganizedforstockaccounting.
DGABE2013–142.
6.
2.
-Fixedassets,stocks,andliabilitiesarecountedtoprepareaninventory,includingtheirvaluation.
2014–15--Accrualaccountingisintroduced:ImplementationofthetextstransposingtheWAEMUdirectivesongovernmentaccountingareaccompaniedbyinstructionsandguidesexplainingthePCEAtabletransposingthePCEisestablishedtofacilitatethetransitionfromcash-basedtoaccrual-basedaccounting.
APCEbridgetableisintroducedtofacilitatethetransitionfromcash-basedtoaccrual-basedaccountingAtrainingplanforaccountantsisinplaceandatimetableforimplementingaccrual-basedaccountinghasbeendisseminatedTransactionsarerecordedasexpensesandrevenueoccur.
Reciprocalaccounts,third-partyaccounts,andfinancialaccountsaremonitoredregularlyThefirstopeningbalancehasbeendrawnupandrecordedYear-endtransactionsregardingdepreciation,riskprovisions,andexpensesarerecorded.
AnincomeandexpensestatementtobeattachedtothefiscalyearisproducedforrecordingthesetransactionsOff-balancesheetoperationsareinventoried.
DNTCP2013–20--54IntermediateEffectsOutcomeDepartmentInvolvedMaturityPAGAMReferenceTANeedTheaccountingframeworkmeetsinternationalstandardsNewoutcomeproposed:themanagementofautonomousagenciesisstandardizedandtheiraccountsaretransparentEachEPAsubmitsquarterlyreportsonbudgetexecutionandfinancialriskstotheDGB,DNTCP,andtherespectiveDAFTheaccountingsystempreparedbytheDNTCPforEPAmanagementiswidelyused;ManagementcontractsarewidelyusedOvertime,thegovernment'spolicytocontroltheproliferationofEPNsisclearandappliedAsystemformoreconsistentmanagementoftheEPAs,withrealbudgetaryandfinancialautonomyantasingleaccountmanager,namelytheEAPmanager.
CivilserviceDGBDNTCPministriesCDICARFIP2013–152.
6.
3-PAGAMReference,StrategicEffect3:ThefinancialgovernancesystemmakesoperatorsaccountableandincreasesthetransparencyandvisibilityofPFMInternalcontrolsystemsensuretheeffectivepreventionanddetectionofirregularitiesinpublicrevenueandexpenditureContinuetodevelopriskmapsintheministriesandinternalfiscalsupervision,andthengraduallyintroducefinancialsupervisionarrangements.
CGSP2013–143.
2TABuildthecapacityforfinancialsupervisiontochangethefocusbacktocorefunctions,suchasthesustainabilityofmanagementactsandliabilities.
DNCF2014–153.
2TAExternalcontrolsstrengthengoodgovernanceandensurethereliabilityandcomplementarityofaccountaccountabilitysystemsModernizeandadaptexpostcontrolsandrefineaudittoolstoassesstheperformanceofprograms(allsupervisorybodies).
Allsupervisoryagencies2013–163.
3-GivetheAuditCourt,whenitisestablished,thecapacitytoassumeitsnewdutiesbyallowingittoincreaseitsstaffingandresources.
SupremeCourt+Parliament2013–153.
3-CapitalizeonthegroundgainedbytheAuditorGeneralincombatingpoormanagementpracticesandexpandhispublicpolicyevaluationcapacitytoincludetheassessmentoffiscalprograms.
BVG+AuditCourt20143.
3TACombatmismanagementandcorruption,whichmeansrevitalizingfiscaldisciplineinthefutureAuditCourtandimplementamechanismformonitoringtheplantocombatcorruption.
AuditCourt,BVG,MinistryofJustice2013–143.
3TAParliamentarysupervisionisbasedonadequateinformationandabilitytodothejobSupporttheparliamentinreviewingthebudgetlawbycertifyingtheLdRprocesswithinthetimeframeandsubmittinganopiniontothefinancecommitteeonthedraftbudgetlaws.
AuditCourt2015–203.
4-PAGAMReference,StrategicEffect4:DecentralizationisreinforcedbyagoodPFMsystemTheISisconsistentwiththeneedsofthedecentralizedgovernmentdepartmentsandtheregionalassembliesDualentryaccountingisthenorminallrevenuecollectionoffices.
DNTCP20144.
2.
1.
1-Providerevenuecollectionofficeswithmanualsfordualentryaccounting.
Aninstructionwillbecirculatedtoinstitutethissystem.
DNTCP20144.
2.
1.
2.
-55IntermediateEffectsOutcomeDepartmentInvolvedMaturityPAGAMReferenceTANeedTheaccountingframeworkmeetsinternationalstandardsNewoutcomeproposed:themanagementofautonomousagenciesisstandardizedandtheiraccountsaretransparentEachEPAsubmitsquarterlyreportsonbudgetexecutionandfinancialriskstotheDGB,DNTCP,andtherespectiveDAFTheaccountingsystempreparedbytheDNTCPforEPAmanagementiswidelyused;ManagementcontractsarewidelyusedOvertime,thegovernment'spolicytocontroltheproliferationofEPNsisclearandappliedAsystemformoreconsistentmanagementoftheEPAs,withrealbudgetaryandfinancialautonomyantasingleaccountmanager,namelytheEAPmanager.
CivilserviceDGBDNTCPministriesCDICARFIP2013–152.
6.
3-TheDNTCPhasacomputerizedsystemforfiscalandaccountingmanagementthatislinkedtothedecentralizedunits.
DNTCP20154.
2/4.
2.
2-FiscaldecentralizationissupportedbyasystemofaccountabilityandreportingthatreducesthefiduciaryriskandensurestransparencyThenewcompetencesaregraduallytransferredtobudgetmanagers:4.
3-GradualdecentralizationofpaymentauthorizationafterconductingauditsthatcertifythatrequirementsaremetDGB2015–17--AllowprincipalpaymentauthorizationagentstotreatloansasfungibleafterdemonstratingoneormorefiscalyearsoflowandacceptablemanagementriskDGB2018–19--BuildcapacityforfinancialsupervisiontorefocussupervisiononthesustainabilityofmanagementactionsandcommitmentsDNCF2015-56AnnexIII.
ProposedmethodformonitoringpaymentlagtimesandarrearsCasestudy:MinistryofHealth,Section610,PaymentAuthorizationAgent610,allfunctionalunitsThefollowingstudyisculledinwholefromthePREDsoftware,whichhasadatabasewithinformationonallthe4,032filesofcommitmentsundertakeninFY2012,representingabout20,150transactionsbythisministryalone.
AvailabledataDataMeaningSectionAppointedbytheMinistryFUUnitreceivingtheappropriationPaymentAuthorizationAgentTheMinisterand,bydelegation,hisDFMMDTNo.
ReferenceofthepaymentorderNetpayableTransactionamountCommitmentNo.
CommitmentreferencenumberDatevisOrdEngDateonwhichthepaymentauthorizationagentcommittedthefundsDateVisCFEngDateonwhichtheaccountantapprovedthecommitmentDateBEOrdDateonwhichthepaymentauthorizationagentvalidatedthepaymentandissuedthepaymentorderDateVisCFBEDateonwhichtheaccountantissuedthepaymentorderDateAcceptedbytheTreasuryDateonwhichtheaccountantenterstherecordDateofPaymentbytheTreasuryDateonwhichtheaccountantpaidDatePJDateappearingonthemostrecentPJreferencedinthepaymentorder(serviceprovided)PurposeoftheexpenseStatementofthepurposeoftheexpenseMONITORINGTHEPAYMENTOFWAGESThesalariescanbeidentifiedbytwopossiblecriteria:-thepurposeoftheexpenseexplicitlymentionedthewages-noinvoicedateisreferencedbecausethesearegeneralpaymentstobanksholdingpayrollaccountsMethod:classificationofwagesbymonths,addmonthtomonth57Ministrycasestudy:AVERAGEPAYMENTTIMELAGS16054754000CODE252978#Theyarecalculatedasthedifferencebetweenmeanvaluesonthefollowingdates:DatevisOrdEng/DateVisCFEng/DatePJ/DateBEOrd/DateVisCFBE/DateTreasuryPaymentMinistryCaseStudy:Comment:Theaveragetimepaymentsremainpendingisonaveragelessthanthreemonths,althoughsomepaymentsareoverdueforlongerperiodsandbecomearrearsaccordingtotheWAEMUdefinition(expensesvalidatedandunpaidforthreemonths).
Seethemonitoringofarrearsatmorethan90daysbelow.
Commitment+AppprvalbyCFReceiptofgoodorservicePaymentAuthorizationApprovaloftheCFPaymentStageOutstandingPayments52.
33CommitmentStage49.
5411.
16days38.
4days19.
2days4.
7days28.
4days020,000,00040,000,00060,000,00080,000,000100,000,000120,000,000140,000,000160,000,000FY2012,MinistryofHealth,WagePaymentsbyMonth58HistoryofthepaceofpaymentsandthetimeoverduebymonthsTheyarecalculatedintermsofcumulativepaymentsandpaymentvalidationsonamonthlybasis-cumulativepaymentsinchronologicalorder:DateAmountCumulativeAmountPayment11/01/2012100100Payment22/02/201250150Etc.
…-paymentvalidationsusingthesamemethodWethencomparethecumulativepaymentsandpaymentvalidationsattheendofeachmonth.
Overduepaymentsarecalculatedasthedifferencebetweenvalidationsandpayments.
CasestudyoftheMinistryofHealth:CumulativepaymentvalidationsCumulativepayments[XAxis:MonthsoftheyearJan–Jan]05,000,000,00010,000,000,00015,000,000,00020,000,000,00025,000,000,00030,000,000,000JanvierFévrierMarsAvrilMaiJuinJuilletAoutSeptembreOctobreNovembreDécembreJanvierPJcumulesPaiementscumulesPayments/MonthsValidations/MonthsCumulativePaymentsCumulativeValidationsOverduePaymentsJanuary23,578,500126,652,63823,578,500126,652,638103,074,138February52,272,000288,497,27775,850,500415,149,915339,299,415March132,542,0151,439,156,314208,392,5151,854,306,2291,645,913,714April59,840,700153,296,388268,233,2152,007,602,6171,739,369,402May609,147,607117,952,060877,380,8222,125,554,6771,248,173,855June56,646,063354,960,229934,026,8852,480,514,9061,546,488,021July239,807,506304,875,5291,173,834,3912,785,390,4351,611,556,044August396,692,176287,096,4371,570,526,5673,072,486,8721,501,960,305September344,280,588320,484,6671,914,807,1553,392,971,5391,478,164,384October307,758,7261,109,035,6662,222,565,8814,502,007,2052,279,441,324November400,078,9123,833,492,1882,622,644,7938,335,499,3935,712,854,600December1,799,593,4696,041,684,5364,422,238,26214,377,183,9299,954,945,667January1,906,039,6826,041,684,5366,328,277,94420,418,868,46514,090,590,521February16,805,5006,345,083,44420,418,868,46514,073,785,021Total6,345,083,44420,418,868,46559MONITORINGPAYMENTSINARREARSFORMORETHAN90DAYSThearrearsarecalculatedinaccordancewiththeWAEMUdefinition,takingexpensesunpaid90daysaftervalidation.
Theproposedcalculationismadewithreferencetotheamountsofthepaymentsmademorethanthreemonthsafterthedateshownonthemostrecentattachedinvoice.
Stage1:-Fortransactionsnotexecutedatyear-end,usetheoldestpaymentdatecoveredbystudy931/01/2013inthecasestudy-Donotcounttransactionsinwhichtheattachedvoucherandtheactualpaymentareseparatedlessthan90daysStage2:-Inventoryallunpaidarrearsateachmonth-end-Sumthemupeverymonth(bluecolumnsbelow)-Calculatetheannualaverage(redlinebelow)Casestudy:MinistryofHealth[DatesAmountsAverage]datesmontantsmoyenne31-Mar-12259,09630-Apr-1240,708,45131-May-1275,223,28030-Jun-12963,330,40131-Jul-12965,653,44231-Aug-12901,786,92730-Sep-12907,214,66231-Oct-121,030,860,80830-Nov-12933,746,93331-Dec-12712,823,9376531607940200,000,000400,000,000600,000,000800,000,0001,000,000,0001,200,000,0001-Mar-121-Apr-121-May-121-Jun-121-Jul-121-Aug-121-Sep-121-Oct-121-Nov-121-Dec-12FY2012,MinistryofHealth,Changesinarrearsatmorethan90daysAnnualAverage