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Public Expenditure Management Peer-Assisted Learning (The “PEMPAL” Project). Presented by Rich Bartholomew to ICGFM – Jan 3, 2007 using materials developed by Cheryl Gray of the World Bank. What is ‘PEMPAL’?. A capacity-building initiative for selected Europe and Central Asian governments

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Public Expenditure Management Peer-Assisted Learning(The “PEMPAL” Project)

Presented by Rich Bartholomew to ICGFM – Jan 3, 2007

using materials developed by Cheryl Gray of the World Bank


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What is ‘PEMPAL’?

A capacity-building initiative for selected Europe and Central Asian governments

  • Target group of 14 governments:

    Serbia, Moldova, Montenegro, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Azerbaijan, Armenia, Georgia, Albania, Kosovo, Uzbekistan, Croatia


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What is ‘PEMPAL’?

Supported by the participants and a broad donor/practitioner community :

  • World Bank,

  • DFID,

  • US Treasury Office of Technical Assistance (OTA),

  • OECD, GTZ,

  • InWent,

  • Polish National Bank,

  • Slovenia Center of Excellence in Finance


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What is ‘PEMPAL’?

Two complementary elements:

  • “Peer assisted learning”

  • Benchmarking (for focus and measurement of results)


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Why PEMPAL?

  • Critical subject: Efficient and effective public spending is at the core of economic development and stability.

  • Universal practice: Public Finance Management is an essential responsibility of every government.

  • Strong peer learning potential: Many governments are trying new approaches; they want to learn from each other.


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1. Peer-Assisted Learning

  • Focused meetings for 4 Communities of Practice (COP’s)

    • Treasury/IT Directors

    • External Auditors

    • Internal Auditors

    • Budget Directors


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Peer-Assisted Learning

2007 Bilateral country activities

  • Montenegro to visit Lithuania to study cash management

  • Tajiks will hold MTEF seminar

  • Kyrgyz to visit the Baltics


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Peer-Assisted Learning

The Website http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/EXTECAPUBEXPMAN/0,,contentMDK:20846953~pagePK:64168427~piPK:64168435~theSitePK:2306656,00.html (or write PEMPAL in the search blank on the WB website)

  • Governments’ documents, learning materials, relevant articles, list of resource persons, etc.

  • Practitioner dialogues


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Peer-Assisted Learning

Videoconferences

  • common themes discussions

  • leadership meetings

  • preparation for on site events


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2. Benchmarking

  • To set goals and measure progress: Where PFM practitioners stand, based on common reference points; and where they want to be

  • Occurs naturally as peer interactions take place


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Prime Benchmarking Tool: The PEFA Indicators

  • International standard for comparison

  • Basis for reforms, TA prioritization

    and Donor “assignments”

    - PEFA assessments are underway or completed in many countries, e.g.:

    Kyrgyz Republic, Georgia. Moldova, Albania, Armenia, Croatia, Serbia, Ukraine, Kosovo


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PEFA – Public Expenditure Financial Accountability

PEFA is a partnership between the World Bank, the European Commission, the UK's Department for International Development, the Swiss State Secretariat for Economic Affairs, the French Ministry of Foreign Affairs, the Royal Norwegian Ministry of Foreign Affairs, the International Monetary Fund and the Strategic Partnership with Africa. U.S. Treasury OTA supports PEFA’s deployment.


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External scrutiny and audit

DIMENSIONS OF PEFA

PFM SYSTEM PERFORMANCE

Policy-based budgeting

Six critical dimensions of PFM system performance

Comprehensiveness and transparency

Accounting, recording and reporting

Predictability and control in budget execution

Budget credibility


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Go to PEFA. ORG for full list

  • PI-17 Recording and management of cash balances, debt and guarantees

  • PI-18 Effectiveness of payroll controls

  • PI-19 Competition, value for money and controls in procurement

  • PI-20 Effectiveness of internal controls for non-salary expenditure

  • PI-21 Effectiveness of internal audit

  • PI-22 Timeliness and regularity of accounts reconciliation

  • PI-23 Availability of information on resources received by service delivery units

  • PI-24 Quality and timeliness of in-year budget reports

  • PI-25 Quality and timeliness of annual financial statements

  • PI-26 Scope, nature and follow-up of external audit

  • PI-28 Legislative scrutiny of external audit reports


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PEMPAL Events

  • Plenary workshops

    • planned for 2008

      - a meeting of 4 communities of practice

    • Warsaw 2005 & 6

    • peer presentations

      – highly effective method

      - who is a peer?

      - element of competition


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PEMPAL Events:

  • June 2006 Community of Practice (COP) meeting for Treasury Heads (focused on IT implementation issues)

  • December 2006 Internal Audit COP – leadership committee formed

  • 2007 External Audit COP organizational meeting


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Budget COP Event:

2007 Budget COP Organizational Meeting in Vilnius, Lithuania, March 18-22 (combined with OECD Senior Budget Officers Meeting and sponsored by OTA)


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Vilnius Tasks

  • Election of Budget COP leaders

  • Presentation of study visits and plans for reform

  • Inclusion in the Senior Budget Officers network


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Vilnius Budget COP Meeting

4. Agenda setting for 2007

  • July Seminar at Center of Excellence in Finance in Slovenia

  • Leadership Development

  • Bilateral Interactions

  • Electronic Interactions

  • ICGFM Miami Representation


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PEMPAL Governance

  • Steering Committee

    • “Founding” organizations - WB, DFID, OECD, US Treasury OTA, and

    • 2 representatives of each COP from participating countries (rotating by election or appointment)

  • COP Leadership

    • Individual decisions


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Specific Issues Going Forward

  • Content: How can we make the COP’s as useful as possible for capacity-building?

  • Leadership: Who will lead the COP’s and give them credibility?

  • Permanent Networks for COP members: SBO’s, INTOSAI, EUROSAI, ICGFM, ……?


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ICGFM and PEMPAL

  • Can we incorporate PEMPAL members as presenters in Miami in May?

  • How can we facilitate permanent linkages and membership?

  • Web page links?

  • Regional contact and participation by ICGFM participants in PEMPAL events?


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