2001年-世界发展银行全球_Bangladesh___Country_Financial_Accountability_Assessment_117页_9mb

Bangladesh Country Financial Accountability Assessment Summary

Core Content

This report evaluates the financial accountability and transparency in Bangladesh, focusing on both public and private sectors. It compares current practices against international best practices and offers recommendations to enhance the system.

Main Purpose and Scope

• Public Sector: Assess the financial management standards and practices of government agencies, including procurement, asset management, accounting, internal control, and external oversight.
• Private Sector: Examine the regulatory environment for companies, commercial banks, insurance firms, and non-governmental organizations (NGOs).
• Oversight: Evaluate the effectiveness of parliamentary committees, donor agencies, the media, and the Comptroller and Auditor General's (C&AG) Office in monitoring public funds.

Key Findings

Public Sector Accountability

• Control Environment: Internal controls are weak, leading to high fiduciary risk. Procedures are not well-defined, training is inadequate, and records are not properly managed.
• Budgeting and Legitimacy: A new budget classification system was introduced in 1998, improving the usefulness of budgets and accounts. However, the system is not fully implemented.
• Procurement: Lack of legal framework and central authority results in widespread misprocurement. About 30% of public expenditure and up to 80% of foreign-assisted projects go through procurement. There is a need for standardized procurement guidelines, a dedicated procurement department, and training for procurement personnel.
• Accounting: Asset registers are not maintained, leading to losses and misuse of government assets. There is a need for proper asset management and periodic independent inspections.
• Internal Audit: Internal audit is underdeveloped, with only a few large ministries and bodies having internal audit units. Staff are not independent, and there is a lack of performance audits. Internal audit should be strengthened and linked with internal control improvements.
• External Audit: The C&AG is constitutionally independent but is treated as part of the executive. His reports are not made public, and his own accounts are not independently audited. Recommendations include opening C&AG meetings to the media and establishing an independent audit body for his accounts.
• Parliamentary Oversight: The Public Accounts Committee (PAC) and other financial committees are dominated by the ruling party. They are not adequately accountable to the public. There is a need for diverse representation and transparency in their operations.

Private Sector Accountability

• Regulatory Bodies: The Registrar of Joint Stock Companies, Securities and Exchange Commission (SCE), and stock exchanges regulate private sector entities. However, there is a need for stronger enforcement and more comprehensive oversight.
• Accountants and Auditors: Only 2% of professional accountants work in the public sector, while 98% are in the private sector. This reflects the poor status and low pay of public sector professionals. There is a need for better training, career development, and improved working conditions.

Recommendations

• Strengthen Internal Control: Establish a comprehensive internal control framework, including training, clear procedures, and supervision.
• Improve Procurement: Introduce legal frameworks and central authority for procurement, and train personnel in compliance with international standards.
• Enhance Asset Management: Maintain asset registers and conduct periodic independent inspections to prevent losses and misuse.
• Develop Internal Audit: Ensure internal audit is independent, reports directly to agency heads, and is integrated with internal control improvements.
• Improve External Audit: Separate the functions of accounting and auditing, ensure the C&AG is independent, and improve transparency by publishing audit reports.
• Strengthen Parliamentary Oversight: Promote diverse representation in financial committees and ensure they are accountable to the public.
• Revamp Training Programs: Link training with promotion and transfer policies, evaluate past training, and expand the Financial Management Academy program.
• Promote Private Sector Engagement: Encourage the involvement of private auditors in public audits to improve efficiency and resource allocation.
• Enhance Accountability in Public Enterprises: Improve governance by introducing business experience into board appointments and implementing performance-based reward and punishment schemes.

Conclusion

The report highlights significant challenges in financial accountability and transparency in Bangladesh, particularly in the public sector. While some improvements have been made, the overall control environment remains weak. Recommendations focus on enhancing internal and external oversight, improving procurement and asset management, and strengthening the role of the C&AG and parliamentary committees. The private sector also requires better regulation and professional development to ensure accountability and transparency.