2015年-世界发展银行全球_Assessment_of_the_Zimbabwe_Public_Finance_Management_System__for_Investment_Lending_Projects_51页_1mb

Summary of the Assessment of Zimbabwe's Public Finance Management System for Investment Lending Projects

Core Content

This report, Report No. 102796-ZW, provides an assessment of fiduciary risks associated with the use of Zimbabwe's financial management (FM) systems for implementing donor and bank-financed investment projects. The assessment was conducted under the leadership of the Ministry of Finance and Economic Development (MOFED) and follows a risk-based approach aligned with the Interim Strategic Note (ISN) and the Framework Methodology for Channeling Investment Lending Projects through Country Financial Management Systems.

The report evaluates several key components of the public financial management (PFM) system, including planning and budgeting, accounting and reporting, treasury management and funds flow, internal controls and audit, and external audit. It highlights both the strengths and weaknesses of the current systems and proposes measures to mitigate fiduciary risks.

Main Findings

1. Fiduciary Risk Overview

• Fiduciary risk is the risk that donor or bank funds may not be used for their intended purposes or may be misused due to poor economy and efficiency.
• The use of country FM systems for donor projects may lead to commingling of funds, which increases the risk of misuse.
• The assessment recommends that donor projects should maintain separate bank accounts outside the Consolidated Revenue Fund (CRF) to reduce the risk of misappropriation.

2. Planning and Budgeting

• Donors currently do not use country systems for budgeting, and their systems vary, leading to substantial fiduciary risk.
• The budgeting process is participatory, involving consultations with sector ministries and stakeholders.
• Donor projects are not fully integrated into the national budget, and the information captured is often less than 60%.
• It is recommended that MDAs identify all donor and statutory-funded projects and ensure their inclusion in the national budget at the project level.

3. Accounting and Reporting

• The current accounting and reporting system for donor projects has a moderate risk rating.
• The IFMIS system, which uses SAP - EC 6 Enhancement Package 7, is capable of tracking budgets and expenditures and generating financial statements.
• However, the system is not available at the district level, and grants are not fully captured in the system.
• The revised Chart of Accounts enables better tracking of donor and statutory funds.
• It is recommended that the Business Intelligence Module be installed to enhance reporting for development partners.

4. Treasury Management and Funds Flow

• The current system for managing funds is moderate in risk.
• Most donor projects open their own accounts, leading to re-allocation issues when donor priorities change.
• Government cash balances do not benefit from these funds, creating additional costs.
• It is recommended that donor funds be protected in designated accounts outside the National Development Fund (NDF) and that automatic roll-over mechanisms be established.

5. Internal Controls and Audit

• The internal audit function is nascent and provides limited assurance.
• The segregation of duties is often compromised due to small team sizes.
• It is recommended that capacity-building be undertaken in areas such as regularity audits, performance audits, and systems audits.
• A Central Unit or Agency should be established to oversee internal auditing and ensure compliance with INTOSAI standards.

6. External Audit

• The Office of the Auditor General (OAG) is capable of auditing donor projects but faces compliance challenges.
• The external audit process is moderate in risk, but the audit scope is limited and compliance paragraphs are often missing in audit reports.
• The OAG needs to be reformed to improve compliance with INTOSAI standards.
• The Bank should agree on audit terms of reference with the Government and OAG to ensure timely submission of audit reports.

Key Recommendations

• Use of OAG for audit: The OAG should be used to audit donor projects to ensure independence and quality.
• Separate bank accounts: Donor projects should maintain separate accounts outside the CRF to reduce the risk of commingling.
• Improved internal controls: The IFMIS should be enhanced with security and reliability measures.
• Capacity building: Training and development of PFM professionals should be prioritized to address staffing shortages.
• Legal framework improvements: Regulations for the PFMA should be finalized to clarify provisions and ensure compliance.
• Roll-out of IFMIS: The system should be extended to district levels to improve timely reporting.
• Grant management module: This should be used by MDAs to track donor and statutory funds.
• Enhanced audit procedures: The OAG should conduct annual audits of the IFMIS, and independent security audits should be conducted every two years.

Conclusion

The assessment concludes that while Zimbabwe has made progress in strengthening its PFM system, several weaknesses remain that could impact fiduciary risk management. The implementation of recommended measures could significantly improve the reliability and transparency of the system, making it more suitable for donor and bank-financed projects. The transition from donor systems to national systems is possible with the right capacity-building and legal reforms.