2003年-世界发展银行全球_Republic_of_Cape_Verde___Country_Financial_Accountability_Assessment_67页_349kb

Summary of the Republic of Cape Verde Country Financial Accountability Assessment (CFAA)

Core Content

The Republic of Cape Verde Country Financial Accountability Assessment (CFAA) is a collaborative effort between the Cape Verde government and its technical and financial partners, including the World Bank, the European Union, and the Netherlands. The report aims to evaluate the current financial management arrangements in the public and private sectors, identify weaknesses and risks, and provide actionable recommendations to improve transparency, efficiency, and accountability in public finance management.

Main Objectives

• Assess the financial management system and identify weaknesses and risks.
• Provide practical recommendations to enhance the effectiveness and relevance of public finance management.
• Support the government in developing action plans aligned with its development objectives and financial capacity.
• Contribute to poverty reduction strategies and the implementation of public expenditure reviews.

Key Areas Covered

1. Human Resources Management and Institutional Structure of MFPDR
2. Budget Preparation
3. Government Revenue Sub-system
4. Other Types of Revenues
5. Government Expenditure Process
6. Closing of the Fiscal Year
7. Management of Public Assets
8. Debt Management and Public Indebtedness
9. Public Finance Management at the Local Level (Communes)
10. Management of Financially Autonomous Public Institutions
11. Ex Post Financial Control
12. Content and Conduct of Ongoing Reforms

Main Findings and Recommendations

1. Human Resources Management and Institutional Structure of MFPDR

• Core Issues: MFPDR has experienced significant staff attrition, losing about 90 senior staff out of 450 over two years. This has affected institutional stability and expertise.
• Recommendations:
  • Establish a coordinating body for public finance.
  • Improve internal coordination and avoid frequent institutional changes.
  • Strengthen human resource management to ensure effective use of personnel.

2. Budget Preparation

• Core Issues:
  • Two budget approaches (program and conventional) exist without integration.
  • Lack of coordination affects the budget process.
  • Expenditure programming is not well aligned with macroeconomic and fiscal policies.
  • A "corrected" budget is introduced at the end of the fiscal year without legal foundation.
• Recommendations:
  • Unify current and investment budgets into a single model.
  • Improve macroeconomic forecasting and prepare a Medium Term Expenditure Framework (MTEF).
  • Create an aid coordination mechanism to align external resources with project requirements.

3. Government Revenue Sub-system

Tax General Directorate (DGCI)

• Core Issues:
  • Deficient taxpayer census and identification, leading to reduced tax revenue.
  • Serious deficiencies in the NIF file.
  • Tax collection system with BCA is not well executed.
  • Unpaid tax debts (IUR-PS and IUR-PC) are very high.
  • DGCI does not verify tax returns outside Santiago Island.
  • Limited oversight of decentralized structures.
• Recommendations:
  • Improve taxpayer census and identification.
  • Enhance tax collection system with BCA and conduct audits.
  • Strengthen tax verification and monitoring.
  • Increase transparency and improve the internal audit process.

Customs General Directorate (DGA)

• Core Issues:
  • DGA collects 19 types of duties and taxes, many of which will be replaced by VAT.
  • SYDONIA++ is being introduced to improve processes.
• Recommendations:
  • Ensure better implementation of SYDONIA++.
  • Coordinate with the DGCI to streamline tax and customs collection.

4. Other Types of Revenues

• Core Issues: Some technical ministries collect ancillary revenues that are not clearly identified or repaid to the Treasury.
• Recommendations:
  • Clarify and formalize the collection and repayment of ancillary revenues.

5. Government Expenditure Process

• Core Issues:
  • Discrepancies between theory and practice in domestic expenditure.
  • Complex procedures for different types of financing (domestic, counterpart funds, external).
  • Payments are often made before services or goods are delivered.
• Recommendations:
  • Improve transparency and consistency in expenditure procedures.
  • Ensure proper sequencing of transactions to align with service delivery.

6. Closing of the Fiscal Year

• Core Issues:
  • The complementary period varies annually, affecting performance comparisons.
  • Delays in revenue data collection complicate the preparation of the Conta Geral do Estado (CGE).
  • Inadequate processing of payment arrears at budget closing.
• Recommendations:
  • Standardize the complementary period.
  • Improve the timeliness and accuracy of revenue data.
  • Ensure proper processing of payment arrears.

7. Management of Public Assets

• Core Issues:
  • The DGPE faces challenges in managing public assets.
  • Lack of clarity in asset ownership between the state and communes.
• Recommendations:
  • Strengthen DGPE's capacity and improve asset management.
  • Clarify the division of responsibilities and asset ownership.

8. Debt Management and Public Indebtedness

• Core Issues:
  • No legal ceiling for external debt.
  • Weaknesses in "borrowing arrangements" including lack of monitoring and partial non-compliance with payment deadlines.
• Recommendations:
  • Replace "borrowing arrangements" with regular Treasury operations.
  • Establish a comprehensive debt management system.

9. Public Finance Management at the Local Level (Communes)

• Core Issues:
  • Lack of coordination between central and local levels.
  • Insufficient skills, motivation, and remuneration of communal staff.
  • Mismatch between allocated resources and local needs.
  • Inadequate monitoring and valuation of cross-debts.
  • Weak accounting and financial management at the commune level.
• Recommendations:
  • Improve coordination and capacity at the local level.
  • Clarify the division of responsibilities and financial support.
  • Enhance monitoring and valuation of cross-debts.
  • Strengthen financial management systems in communes.

10. Management of Financially Autonomous Public Institutions

• Core Issues:
  • Lack of clear accounting instruments to monitor financial status.
  • No direct link between external resources and financial needs of these institutions.
• Recommendations:
  • Develop clear financial instruments for monitoring.
  • Improve coordination between MFPDR and autonomous institutions.

11. Ex Post Financial Control

General Financial Inspectorate (IGF)

• Core Issues:
  • Only 12 officers, while 20 are needed.
  • Incomplete program execution (only 40% of 1999-2000 activities completed).
  • Delays in producing activity reports.
• Recommendations:
  • Increase staffing and improve program execution.
  • Enhance reporting and analysis of activities.

Court of Auditors (TdC)

• Core Issues:
  • Delays in analyzing annual accounts.
  • Late submission of accounts by institutes and MFPDR.
• Recommendations:
  • Improve the timeliness and completeness of account submissions.
  • Enhance the preventive and educative impact of TdC through timely analysis.

Priority Recommendations Matrix

Conclusion

The CFAA highlights the need for institutional stability, better coordination, and improved transparency in public finance management. It emphasizes the importance of aligning financial and legal frameworks with the country's development goals and provides a roadmap for reforms in budgeting, taxation, revenue management, expenditure control, and local governance. The report underscores the government's commitment to strengthening its capacity and implementing reforms to achieve better public resource management.