2005年-世界发展银行全球_Republic_of_Chile___Country_Financial_Accountability_Assessment_86页_6mb

Summary of the Country Financial Accountability Assessment (CFAA) for Chile

Core Content

The Country Financial Accountability Assessment (CFAA) for Chile, conducted by the World Bank and the Inter-American Development Bank (IDB), evaluates the country's public financial management (PFM) systems and their alignment with international standards. The report is based on a planning mission in 2003 and a main mission in 2004, with additional government input in 2005.

Chile is an upper- to middle-income country with a population of 15.4 million and has demonstrated strong economic performance in Latin America. In 2003, its GDP was $72.4 billion, and per capita income was $4,390, one of the highest in the region. The country has managed to insulate itself from regional crises and maintain growth, albeit at a slower pace than in the mid-1990s.

The CFAA highlights that Chile has a robust institutional and legal framework for PFM, with clear roles defined between the legislature, the executive, and the autonomous external audit institution (CGR). The country has also made significant strides in implementing reforms aimed at improving transparency, reducing corruption, and enhancing public service delivery.

Main Points and Key Information

1. Public Financial Management (PFM) Overview

• Centralized and Decentralized Systems: Chile has a centralized system (DIPRES and CGR) for fiscal discipline, efficiency, and external reporting, and a decentralized system for service delivery and financial operations, managed by 190 service agencies.
• Fiscal Discipline: Chile has achieved a structural budget surplus of 1% of GDP, which supports countercyclical economic policies.
• Transparency: Chile scores high on transparency due to clear rules, strict adherence, and a culture of accountability. Its fiscal reporting is timely and comprehensive, with information publicly available on government websites.
• Performance Information: Performance indicators and program evaluations are used to align incentives with budget objectives and facilitate supervision by central authorities.

2. Legal and Institutional Framework

• The legal framework for PFM includes the Framework Law for Financial Administration (LAFE), which defines roles and responsibilities.
• CGR (Controller General of the Republic) is the autonomous external audit institution, responsible for overseeing public finances and financial reporting.
• DIPRES (National Budget Office) and MOF (Ministry of Finance) are responsible for budgeting and financial management, while CAIGG (Council for General Government Internal Auditing) and IAU (Internal Audit Unit) support internal control and audit functions.

3. Key Challenges and Recommendations

• System Integration: The systems used by service agencies are not integrated with central systems (DIPRES and CGR), leading to duplication and inefficiencies. An integrated financial management system (SIGFE) is being developed to address this.
• Internal and External Audit: The CGR is not currently issuing audit opinions on the consolidated financial accounts or individual agency statements. This is a key issue for aligning with international standards.
• Recommendations:
  • Ensure that SIGFE is fully implemented and that both DIPRES and CGR have simultaneous access to its data.
  • Develop a formal plan for the implementation of the centralized system.
  • Include audit opinions in the annual financial reports of the general government.
  • Align financial reporting with OECD Best Practices and GFSM 2001 standards.

4. Fiscal Transparency and Reporting

• Chile publishes monthly, quarterly, and annual budget execution reports within 45 days of the end of each period.
• A Public Finances Yearbook is published annually, containing comparative data for the previous nine years.
• The annual financial report by the CGR is timely, comprehensive, and reliable, but lacks detailed notes, operating statements, and audit opinions.

5. State-Owned Enterprises and Budgeting

• State-owned enterprises (SOEs) such as CODELCO and ENAP play a significant role in Chile's economy.
• CODELCO transfers 10% of its gross revenues to the Ministry of Defense for equipment purchases, an exception to the general prohibition on earmarking revenues.
• Banco Del Estado engages in quasi-fiscal activities, including managing government banking services and social initiatives, though the extent of this activity is not reliably estimated.

6. Internal Control and Audit

• Chile has made progress in adopting modern internal control concepts, with internal audit units becoming more developed.
• Internal audit functions are supported by the Management Improvement Programs (PMG), which aim to improve financial management capacity in service agencies.
• Internal auditors are responsible for advising management, conducting audits, and recommending improvements in operations and controls.

7. External Audit and Review

• The CGR has a broad mandate, including external audit, but its role in preparing financial statements conflicts with its audit responsibilities.
• To comply with international standards, the CGR should distance itself from the preparation of financial statements and focus on ex-post audit and evaluation.
• A constitutional amendment may be necessary for the CGR to issue audit opinions on consolidated financial statements.

8. Unresolved Issues

• The CGR needs to be restructured to ensure functional independence and audit independence.
• SIGFE is under development but lacks a formal implementation plan and detailed steps.
• The annual financial report needs to be enhanced with audit opinions and operating statements to meet international standards.

Conclusion

Chile has a strong foundation in public financial management, with a well-developed budget system, high levels of transparency, and a culture of accountability. However, the country must address key issues related to system integration, audit independence, and reporting standards to align with international best practices. The CFAA recommends moving toward accrual-based fiscal reporting, enhancing the role of the CGR in external audit, and improving the comprehensiveness and reliability of financial statements.

Annexes

• Annex 1: List of officials contacted during the CFAA missions.
• Annex 2: Detail of the Public Financial Management Components.
• Annex 3: Budget Tables.
• Annex 4: SIGFE coverage.

Acknowledgments

The CFAA team acknowledges the assistance of the Government of Chile, the IMF, the OECD, and the UK National Audit Office. The report also incorporates data and insights from previous studies, including the Report on the Observance of Standards and Codes - Fiscal Transparency Module and the OECD report on Budgeting in Chile.