2014年-世界发展银行全球_Mozambique_PFM_for_Results_Program___Annex_5_Integrated_Fiduciary_Systems_Assessment_17页_393kb

Mozambique PFM for Results Program Summary

Core Content

The Mozambique Public Financial Management (PFM) for Results Program aims to improve the fiduciary performance of selected subsectors in the health and education sectors by strengthening financial management systems, procurement processes, and fraud and corruption (F&C) control mechanisms. A Fiduciary Systems Assessment (FSA) was conducted to evaluate the adequacy and effectiveness of the existing systems, identifying five key risks that could undermine the program's results.

Key Risks and Mitigation Measures

Key Risks Identified

1. Non-compliance with internal rules and controls in the use of operational expenditures, leading to inefficient, ineffective, uneconomical, or unethical spending.
2. Poor value for money in the procurement of critical medicines using performance allocations.
3. Poor supply chain functioning increasing the risk of theft or diversion of medicines for resale.
4. Misuse of direct grants to primary schools for purposes other than intended.
5. Ineffective F&C detection, reporting, investigation, and prosecution mechanisms in both sectors.

Mitigation Measures

• DLI 3 (School Based Councils) will create mechanisms for greater social accountability.
• DLI 8 (Budget Classification) will improve the transparency of operating expenditures in the education sector.
• DLI 9 (Inspections) will increase vertical accountability.
• The program will strengthen internal audit capacity in health and education sectors to verify compliance with internal controls.
• The Tribunal Administrativo will conduct external audits, including spot checks and cash counts, to assess expenditure documentation and physical controls.
• The Procurement Specialist will be engaged to coordinate procurement activities and provide technical guidance.
• The Essential Medicines List (EML) will be updated with support from USAID, ensuring that only cost-effective and relevant medicines are procured.
• A protocol will be established to ensure that all medicine consignments are sampled for quality testing by an international standard laboratory.

Financing and Expenditure Framework

Financing

• The program will be financed through the Government's annual budget, with funds disbursed via the treasury system.
• Bank financing will be used to support the program, contributing to the budget and funds.
• High budget execution levels in health and education indicate a functioning system for fund releases.

Expenditure Overview

Table A5.1 outlines the program's expenditure framework across three main areas:

Expenditure Assessment

• The government has a well-developed budgeting process, but weak implementation could lead to inefficiency.
• Performance allocations and capacity development activities are closely linked to program results and will be reviewed annually.
• Operational costs are essential for the delivery of services but risk inefficient use or misappropriation.
• The program will improve the efficiency and transparency of operating expenditures through capacity building and accountability mechanisms.

Financial Management Framework

Strengths and Weaknesses

• The e-SISTAFE system and manual procedures provide a solid foundation for financial management.
• However, limited district-level classifiers for education and inconsistent adherence to internal controls pose challenges.
• Cash transfers in districts without e-SISTAFE access may have delays and data integrity risks, but reconciliation procedures are in place.

Internal Audit Entities

• Four internal audit entities will oversee program implementation: IGF (Finance), IGE (Education), IGS (Health), and CMAM's internal audit unit.
• The IGF has strong capacity, with 115 auditors and 80 annual audits, and is moving toward a focus on operational performance.
• The IGE and IGS also have adequate procedures, though the IGS has not benefited from recent training.
• The CMAM internal audit unit is newly established and will be strengthened with program support.

External Audit

• The Tribunal Administrativo will audit the program's financial statements and will include specific tests for high fiduciary risks.
• The external audit terms of reference will include checks on procurement practices and expenditure documentation.
• The Tribunal has improved audit quality and is experienced in performance auditing, making it a reliable entity for program oversight.

Procurement Framework

Procurement Profile

• The program has a modest procurement profile, primarily involving critical medicines, consultants, and equipment.
• Most procurements will be managed by CMAM and DNT at the central level, while small works and equipment will be managed at local levels.

Procurement Challenges

• Weak implementation and enforcement of procurement procedures, especially at provincial and municipal levels.
• The Unidade Funcional de Supervisão das Acquisições (UFSA) has limited capacity, and UGEAs (Decentralized Procurement Units) face similar challenges.
• Competitive bidding is commonly used, with domestic preference margins (10% for works, 15% for goods) applied.

Mitigation Measures

• The program will improve the management information system for procurement.
• A complaint-handling mechanism will be established to address F&C issues.
• The program will support the capacity development of procurement staff and the adoption of a strategic approach to procurement.

Conclusion

The PFM for Results Program in Mozambique is designed to enhance fiduciary systems in the health and education sectors. While the current systems meet OP 9.00 requirements, the substantial risk rating necessitates targeted mitigation measures. The program will leverage internal and external audit mechanisms, capacity development initiatives, and improved procurement practices to ensure transparency, accountability, and efficiency in financial management.