2012年-世界发展银行全球_Government_of_Repbulic_of_South_Sudan_Public_Finance_Management_Assessment_113页_71mb

Summary Assessment of Public Finance Management in South Sudan

Core Content

This report, Report No. 78288-SS, presents a Public Finance Management (PFM) Assessment of the Government of the Republic of South Sudan (GRSS) based on the Public Expenditure and Financial Accountability (PEFA) framework. The assessment was conducted in April 2011, before South Sudan's independence on July 9, 2011, and highlights both achievements and challenges in the PFM system of the country.

Main Points

1. Budget Credibility and Execution

• Low credibility of annual budgets is a major issue, primarily due to weak budget execution.
• The predictability of fund availability (PI-16) is poor, as the cash-rationing system leads to front-loaded spending and payment arrears.
• Improving cash flow forecasting and monthly cash limits could enhance predictability and reduce arrears.
• The budget classification system (PI-5) is improving, supporting policy-oriented budgeting (PI-11).
• The budget is generally comprehensive and of high quality (PI-6), but some ministries, such as SPLA and Veterans Affairs, have one-line items that cover a large portion of expenditure.
• The 2009 Taxation Act has laid a foundation for tax administration, but implementation is still in early stages.

2. Legal and Institutional Framework

• PFM law is lacking, hindering the establishment of a legal basis for budget execution and accountability.
• The Interim Constitution of Southern Sudan and the annual Appropriations Acts require Supplementary Appropriations Acts for budget changes, but these are not consistently followed.
• Internal control systems are not well established or enforced, leading to wasteful expenditure, diversion of funds, and corruption risks.
• MoFEP does not enforce petty cash accountability, cash balance reporting, or competitive procurement procedures.

3. Financial Management Information Systems

• An Integrated Financial Management Information System (IFMIS), known as FreeBalance, has been established in eight spending agencies, but is only used for reporting, not for budget execution control.
• MoFEP and MoPLS manage SSEPS and HRIS, respectively, which have reduced the risk of improper salary payments.
• Improvements in financial forms are being made to replace Arabic forms with English forms.
• A reconfiguration of IFMIS is ongoing to better support budget execution.

4. External Audit and Legislative Oversight

• External audit is beginning to improve, with the Audit Chamber showing progress since the appointment of a new Auditor General in 2010.
• However, capacity constraints limit the effectiveness of auditing and legislative oversight.
• The Public Accounts Committee (PAC) in the Southern Sudan Legislative Assembly (SSLA) is not yet functioning due to lack of audit reports.
• The Committee for Economy, Development and Finance (CEDF) is also working to improve budget review processes.

5. Donor Engagement and Coordination

• Donor coordination is reasonably good, with the help of the Aid Coordination Unit (ACU) and Budget Sector Working Groups (BSWG).
• Multi-Donor Trust Fund (MDTF) and Joint Donor Team (JDT) are examples of good donor coordination.
• However, donor reporting is not aligned with GRSS's budget classification system, leading to a low score for D-2.
• The Country Integrated Fiduciary Assessment (CIFA) and Aid Information Management System (AIMS) are being used to improve donor accountability.

6. Reform Prospects

• PFM reform has been ongoing with donor support, and the Government wants it to continue to become eligible for budget support.
• Key reform measures include:
  • Enacting the PFM Bill (enacted in late 2011).
  • Drafting a Procurement Bill.
  • Implementing cash flow forecasting and quarterly budget allocations.
  • Establishing a treasury single account (TSA).
  • Improving internal audit and accounting systems.
  • Strengthening transparency and comprehensiveness of major spending items.
• Capacity constraints remain a major obstacle to reform, affecting the ability to implement technical and institutional improvements.

Key Information

• Currency: Sudanese pound (SDG).
• Exchange rate: US$1 = SDG 3 (as of April 29, 2011).
• Government fiscal year: Calendar year (changed to July-June in 2011).
• PFM Bill: Enacted in late 2011.
• IFMIS (FreeBalance): Implemented in eight agencies, but used mainly for reporting.
• SSEPS and HRIS: Help reduce salary payment risks.
• Taxation Act: Laid foundation for tax administration, but implementation is ongoing.
• Budget classification system (PI-5): Improved, supporting policy-based budgeting.
• Supplementary Appropriations Acts: Not consistently followed, leading to excess spending.
• MoFEP's role: Central to PFM reform, but enforcement of procedures remains weak.

Conclusion

The PFM system in South Sudan is at an early stage of development, with improvements in budget preparation but serious weaknesses in budget execution, accounting, and internal controls. Donor support and technical assistance have played a crucial role, but capacity building is still needed to ensure sustainable reform. The enactment of PFM legislation and the establishment of a treasury single account are positive steps, but implementation remains a challenge. Legislative and audit oversight is also developing, but capacity constraints continue to limit progress.