Publication: Zambia - Public Expenditure Management and Financial Accountability Review : Country Financial Accountability Assessment, Annex, Volume 2
Loading...
Date
2003-11
ISSN
Published
2003-11
Author(s)
Editor(s)
Abstract
The challenges faced by Zambia in public expenditure management (PEM) have been longstanding, and will require targeted efforts, as well as a strong degree of political will to address. The recently launched constitutional review, which includes issues of public finance, the anti-corruption campaign of the new Government, and the renewed interest by Parliament in governance issues, and accountability have all been encouraging steps. Nevertheless, for Zambia to assure that public accountability is enduring, and not dependent upon the Government of the day, it must take steps to strengthen institutions of the State that can provide public oversight, and that promote basic checks and balances. This report provides a very detailed analysis of the country's PEM, and accountability processes. Yet, many of the recommendations are not new, but have been cited in previous reports of the Bank, and/or other donors. Effective implementation of public sector reforms will likely remain a challenge in Zambia. The limited capacity of Government suggests the need to target a few major aspects of public finance, and to address them persistently: improving compliance with existing regulations; strengthening the oversight institutions of the State; promoting public access to information; and, rebuilding information management, and reporting systems. The report also deals with the second objective of the Poverty Reduction Strategy Paper (PRSP), i.e., with ways and methods by which the Government can ensure efficient, equitable, and transparent management of public resources. It also focuses on the dimension of governance, i.e., the effectiveness of government to be able to provide public services. The specific objectives of the report are to: (a) provide a comprehensive and integrated assessment of Zambia's overall fiduciary risk, i.e., budget management, financial systems and auditing, and public procurement; (b) document PEM reforms progress to-date, and challenges facing Zambia; and, (c) develop a realistic action plan, outlining short and medium term remedial measures, which the Government should implement with donor support.
Link to Data Set
Citation
“World Bank. 2003. Zambia - Public Expenditure Management and Financial Accountability Review : Country Financial Accountability Assessment, Annex, Volume 2. © World Bank. http://hdl.handle.net/10986/14656 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Georgia : Country Financial Accountability Assessment(Washington, DC, 2003-09-26)A number of in-depth studies were conducted between the time of the preparation of the first draft CFAA report in May 2002 and the final mission in February 2003. These included a PER, CPAR and an IMF Report on the Observance of Standards and Codes (ROSC) mission. Each of these missions identified a number of serious weaknesses and made recommendations to address them. Some of these weaknesses had been identified in the CFAA report and others represented new findings. These new findings and their associated recommendations have been reflected in the final CFAA report, sometimes by explicit inclusion, other times by reference. As a result, this final report has a strong emphasis on the internal control framework and fiduciary risks and presents specific short- and medium-term recommendations to mitigate them. In conducting its mission, the team noted that the availability and reliability of financial information beyond routine budget utilization data is severely limited, precluding analysis in a number of areas. Improving the quality of reliable, complete and accurate financial information is essential for sound management decision-making. This report makes four priority and an additional twenty-one recommendations. They are designed to strengthen the legal foundation for internal financial control, construct a modem internal control framework, and develop the human capacity to administer them successfully. Internal controls must be the priority of the Government if it is to reduce its fiduciary risk. The four priority most areas of risk for the Government of Georgia include: implement a sound legal foundation for effective financial controls, build the internal audit function, strengthen the external audit function, and build staff capacities in financial management and auditing.Publication Albania : Country Financial Accountability Assessment(Washington, DC, 2002-05-14)Despite Albania's significant progress in establishing a legal and institutional base, and its strong commitment to reform - placing the country in a good position to develop a sound fiduciary infrastructure - there are however, several issues that need to be addressed: weak institutional capacity; weak internal controls, including cash management, and internal audit functions; and, absence of solid bases for internal audit in the public sector. In the area of private sector accounting, and auditing, issues need to address: differentiation between the banks, insurance companies, listed and non-listed companies, and other entities, for determining accounting standards; in addition to weak audit capacity, and experience in implementing international standards in auditing. Recommendations include the enactment of the Law on Public Sector Internal Audit; strengthened internal controls, including in the Treasury - specifically, the Treasury cash management function - by establishing daily reconciliation of district treasury payment requests, with the reimbursement by the Bank of Albania to Agent Banks, as well as reconciliation between revenue collections, transferred by the agent banks, with the taxpayer-filled payment forms. Further recommendations include strengthened internal audit capacity, by establishing the methodology for conducting internal public sector audits, and providing training; capacity building to the Ministry of Finance's Accounting Department; strengthened internal audit capacity within the Social Insurance Institute, introducing computerized pension and accounting systems in districts; and, strengthened systems at the Parliamentary Commission on Economic, Finance and Privatization (EFP).Publication East Timor Public Administration : Public Expenditure Management and Accountability Note(Washington, DC, 2002-04)This study focuses on the implications of East Timor's transitions from United Nations administration to Independence, from reconstruction to development and from aid dependence to fiscal independence for public expenditure policy and management. Following an assessment of the existing systems and their constraints, it makes recommendations for improvements in the public expenditure management system as a tool for achieving: 1) Macro-Economic Stability and Growth, by delivering a sustainable and productive application of resources; 2) Poverty Reduction, by allocating resources to programs that benefit and meet the needs of the poor; 3) Value-for-Money in the application of public funds, by focusing on economy, efficiency and effectiveness in public spending; 4) Good Governance, by ensuring transparency in decision-making and expenditure management, and accountability within the public sector, to the legislature and ultimately to the public. 2. The note is intended first as a contribution to the Government's on-going reform strategy. Summary recommendations are presented at the end of this report. The note is also intended as a contribution to independent assessments of the Government's financial management system undertaken by external partners. Six Chapters, including the Introduction, comprise the report: Chapter 2 reviews public expenditure trends over the past two years, covering aggregate expenditure, structural and execution issues, and ending with an assessment of the distribution of the benefits of public spending in three sectors, power, health and education. Chapter 3 examines the institutional framework and process of planning and budgeting in core government, autonomous agencies and the arrangements for oil fund management. Chapter 4 assesses budget execution and control systems, including supporting systems for personnel, supply and procurement, and asset management. Chapter 5 examines the relationship between the core public expenditure management system and external partners, including donors and NGOs, and oversight institutions. Chapter 6 presents a brief overview of the capacity building challenges in the area of public expenditure management and proposes a prioritization of actions to address issues identified in the body of the report.Publication India : Orissa State Financial Accountability Assessment(Washington, DC, 2004-05-30)The Country Assistance Strategy for India places emphasis on the need for modernizing public financial management, and accountability systems, and, undertaking such diagnostic work as necessary to help build Government's capacity for better public sector management, and external scrutiny. It calls for financial accountability assessments to be carried out in all States where programmatic adjustment loans are being prepared, supporting reforms associated with fiscal, and fiduciary risks management. Of India's 14 major States, Orissa has the second lowest, per capita income, and a growth rate of 3 percent against the national average of 5-6 percent per annum, while statistics also show its revenue, and fiscal deficits increased significantly over the years. The Government of Orissa is developing a robust reform program, reforms which on the fiscal side, are fully consistent with recommendations for strengthening financial management, and public accountability, as proposed in this State Financial Accountability Assessment (SFAA) Report. This SFAA is designed to ascertain and help mitigate the extent to which public firms in Orissa State, are exposed to fiduciary risks, and it further points to the need for capacity building, in almost every significant aspect of public financial accountability. It is reported that while the legal/regulatory/institutional frameworks for internal control, and internal audit compares favorably with the rest of India, it does less so with international best practice, and, although accounting and financial reporting rules comply with well-established national requirements, it does not with International Public Sector Accounting Standards (IPSAS) for cash based accounting, and financial reporting. Recommendations suggest to encourage the enlargement of the role of the State Accountant General - AG - (Audit) in following up cases of previous Audit Reports which the Committees may not like to pursue for detailed examination; to discuss the most recent reports of the Controller and Auditor General (CAG) as a matter of priority; to include in the annual confidential reports of the departmental officers, an assessment of the quality of response to the audit reports, and recommendations of the Committees; and, civil society should be sensitized, and involved in the accountability process, to achieve transparency.Publication Indonesia : Country Financial Accountability Assessment(Washington, DC, 2001-04-27)This Country Financial Accountability Assessment (CFAA) report, supports the Government of Indonesia's efforts to reform the process of managing public resources, increase transparency in handling financial affairs, and combat corruption. The report assesses that the control environment in Indonesia is weak, despite a political leadership committed to improvement, and, recommends enacting a modern Budget Law, establish parliamentary public accounts, and audit committee, initiate reforms to develop a professional civil service, and, improve procurement laws, and practices in accordance with the Country Procurement Assessment. In addition, Budget execution, and monitoring remain weak, proposing to accelerate transition to a unified budget, improve policy review, by strengthening political inputs into budget preparation, and develop integrated revenue estimates within a macro framework. It emphasizes that the fragmentation in the accounting, and reporting of financial information does not produce reliable, and reconcilable sets of accounts, thus a rational financial management should be established, by creating the position of Accountant General within the Ministry of Finance, establishing financial controllership to handle financial planning, budgeting, and working capital management, and, improving treasury management. Finally, it is recommended that the current audit law be revised, by incorporating a public accounts committee, an independent auditor general, and, define their boundaries of responsibility.
Users also downloaded
Showing related downloaded files
Publication Media and Messages for Nutrition and Health(World Bank, Washington, DC, 2020-06)The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Economic Recovery(World Bank, Washington, DC, 2021-04-06)World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.Publication Remarks at the United Nations Biodiversity Conference(World Bank, Washington, DC, 2021-10-12)World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.