2007年-世界发展银行全球_Serbia___Public_Financial_Management_Assessment_79页_569kb

Serbia Public Financial Management Assessment Summary

Core Content Overview

This document is a Public Financial Management (PFM) Assessment of Serbia, conducted by the World Bank in February 2007. It evaluates the performance of Serbia's PFM system using 28 indicators from the PEFA (Public Expenditure and Financial Accountability) framework and three donor indicators. The assessment is part of the Country Assistance Strategy (CAS) and draws on previous studies, including the Country Financial Accountability Assessment (CFAA) and Country Procurement Assessment Report (CPAR). The goal is to support the government in prioritizing and measuring progress in PFM reform.

Key Pillars and Performance Indicators

The assessment is structured around six core pillars of PFM performance:

1. Credibility of the Budget
2. Comprehensiveness and Transparency
3. Policy-Based Budgeting
4. Predictability and Control
5. Accounting, Recording, and Reporting
6. External Scrutiny and Audit

Main Findings

• Overall PFM Performance: Mixed, with strong performance in Pillar III and Pillar I, but weaker in Pillar IV, V, and VI, indicating significant room for improvement in accountability and financial control.
• Pillar I (Credibility of the Budget): Scores are A for aggregate revenue and expenditure outturns, and C for the composition of expenditure. However, the lack of external audits continues to affect the credibility of the budget.
• Pillar II (Comprehensiveness and Transparency): Scores are B to C+, with challenges in transparency of budget data, public expenditure reporting, and data reliability. The budget documentation lacks detailed information on financial assets, discrepancies in previous years, and policy implications.
• Pillar III (Policy-Based Budgeting): Scores are A and C, showing progress in the budget process, but the link between policy and actual costing of investments and recurrent costs remains weak.
• Pillar IV (Predictability and Control): Scores are B to D+, with the main weakness being the inadequate post-control mechanisms and unpredictable disbursement processes.
• Pillar V (Accounting, Recording, and Reporting): Scores are B+ to D, with notable issues in the timeliness of audited financial statements and inadequate reporting of resources received by service delivery units.
• Pillar VI (External Scrutiny and Audit): Scores are C+ to D, with the absence of an independent external audit and the delay in establishing the Supreme Audit Institution (SAI) being major concerns.

Key Issues and Challenges

• Accountability and Integrity: Weaknesses in financial accountability, particularly the lack of external audit, undermine the credibility of the budget and introduce economic distortions.
• Tax Arrears: Despite clear tax obligations, tax arrears remain high. The lack of integration in information systems and harmonized practices hampers the effectiveness of tax collection.
• Procurement Efficiency: Public procurement suffers from inadequate enforcement of competitive mechanisms, with around 70% of contracts awarded through open competition, but weak justifications for less competitive methods.
• Internal Controls: While some improvements have been made, internal audit units are under-resourced, with only 11 auditors currently employed.
• Donor Practices: Donors contribute to unpredictable disbursements and still largely use ring-fenced Project Implementation Units (PIUs), which lack robust financial systems.

Progress and Reforms

• Positive Developments:
  • Budget execution data is now publicly available.
  • The Treasury and internal control systems have been modernized.
  • A law for the establishment of the Supreme Audit Institution has been adopted.
  • The government has committed to further reforms, including program budgeting and integrated planning, budgeting, monitoring, and reporting.

Conclusion

The PFM system in Serbia has made progress since 2002, particularly in budget preparation and policy-based budgeting. However, significant challenges remain in accountability, financial control, and transparency. Strengthening external audits, improving tax collection systems, and enhancing internal controls are critical for further reform. The government's leadership and coordinated efforts with donors will be essential to ensure sustainable PFM improvements.

Key Recommendations

• Strengthen external audit mechanisms and ensure timely presentation of audited financial statements.
• Improve transparency in budget documentation and public access to fiscal information.
• Enhance financial controls in public procurement and internal audit capacity.
• Integrate information systems and harmonize tax registration and assessment practices.
• Establish a functional Supreme Audit Institution and ensure parliamentary approval for external auditors.

Donor Practices

• Donor practices are assessed under three indicators (DI-1 to DI-3), with scores ranging from C to D.
• Donors may contribute to disbursement unpredictability and still rely on ring-fenced PIUs, which are not fully integrated with the national financial systems.
• The predictability of Direct Budget Support (DBS) is low, which can exacerbate existing weaknesses in the PFM system.

Supporting Frameworks and Institutions

• PEFA Indicators: Used to evaluate PFM performance across six pillars.
• Donor Engagement: Close cooperation with IMF, EAR, DFID, and Norwegian Ministry of Foreign Affairs.
• Legal and Institutional Frameworks:
  • Budget System Law (BSL)
  • Public Payment Agency (PPA)
  • Supreme Audit Institution (SAI)
  • Treasury Single Account (TSA)
  • Chart of Accounts (COA)

Summary of Scores

Final Remarks

The PFM system in Serbia has shown progress but continues to face challenges in accountability, transparency, and financial control. A strategic leadership and strong coordination among government and development partners are crucial for successful reform. The establishment of a functional SAI and improved external audit mechanisms are key steps towards achieving good governance and effective financial management.