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LG Accountability Debate

LG Accountability Debate. Local Budgeting and Financial Management Course March 29-30, 2005. Are LGs fundamentally different?. Capacity Scale Diversity Dependence on intergovernmental system Reform Issues Change Management? Setting Hurdles and Incentives?.

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LG Accountability Debate

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  1. LG Accountability Debate Local Budgeting and Financial Management Course March 29-30, 2005

  2. Are LGsfundamentally different? • Capacity • Scale • Diversity • Dependence on intergovernmental system • Reform Issues • Change Management? • Setting Hurdles and Incentives?

  3. Are LG Budgeting and Financial Management (LBFM) systems fundamentally different? • Budgeting? • Financial Management? • Standards • Clarity/Codification/Uniformity • Reporting? • Accountability? • Proximity to Citizens?

  4. Case

  5. Challenge • IMF/WB Mission Arrives and Notes Lack of Decentralized Financial Accountability • IMF Recommendation to shift to Comprehensive & Uniform Accrual Accounting System • Channel public resources to LGUs that meet financial accountability standards • Country Director keen to ramp up lending to LGs

  6. Task • Report to CD on 2-3 year work program to strengthen local financial accountability • What diagnostic work will you do? • Do you have the right instruments? • Define a strategy to enhance LBFM accountability • Is accrual accounting focus appropriate? • Where? • What is Bank’s role in supporting this strategy?

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