2012年-世界发展银行全球_Province_of_Cordoba__Republic_of_Argentina___Public_Financial_Management_Assessment_46页_792kb

Public Financial Management Assessment of the Province of Cordoba (Report N°: 72402 -AR)

Core Content

This report presents a Public Financial Management Assessment (PFMA) of the Province of Cordoba, Argentina, conducted jointly by the Provincial Government and the World Bank. It is part of a broader initiative to evaluate the public financial management (PFM) systems of four provinces: Buenos Aires, Córdoba, Santa Fe, and San Juan. The assessment focuses on the PFM systems, processes, and institutions, using a subset of 19 PEFA performance indicators to evaluate the province's fiscal management practices.

Key Information

• Currency: Argentine Peso (AR$), with 1 US$ = 4.49 pesos.
• Fiscal Year: January 1 to December 31.
• Partners: The Provincial Government of Cordoba and the World Bank.
• Report Completion: The report was completed in July 2012, following a workshop on May 29, 2012, and incorporating additional information from the province since 2009.

Main Achievements in PFM Reform

• The province updated its PFM regulations in 2003 with the approval of a new Law of Financial Administration and Internal Control (LAF), providing a legal foundation for reform.
• The Ministry of Finance (MOF) is redesigning the financial administration systems to implement an integrated financial management information system (SUAF), aimed at improving financial reporting and efficiency.
• A Directorate for Credit and Public Debt Management (DCPDM) was established to manage public debt effectively.
• The province has made progress in using information technology for tax administration.
• Program budgeting has been introduced in some sectors, with performance indicators used to measure program outcomes.

Key PFM Challenges

• Budget Credibility: The province faces challenges in maintaining budget credibility due to frequent changes and underestimation of revenue by the national government.
• Cash Flow Predictability: The reliance on national transfers for a significant portion of revenue creates uncertainty in cash flow, affecting budget execution and service delivery.
• Policy-Based Budgeting: There is a weak link between budgeting and policy planning, particularly in the absence of comprehensive debt sustainability analysis.
• Control Framework: While the province is working on integrating budget, treasury, and accounting functions, the payroll system remains a key area for improvement due to delays in personnel record changes.
• Internal and External Audit: Internal audits are timely but lack a manual of procedures, while external audits focus mainly on financial aspects and not performance.

PFM Performance Summary

Institutional Framework

• Argentina is a quasi-confederal state with three levels of government: national, provincial, and municipal.
• Cordoba is the second largest provincial economy, contributing 8% of national GDP and 9% of national exports.
• The non-financial public administration is divided into three subgroups: central administration, decentralized entities, and non-consolidated entities.
• The Ministry of Finance (MOF) oversees financial management, while the General Accounting Office (GAO) is responsible for accounting and internal control.
• The Court of Accounts (COA) and the Public Prosecutor's Office handle external control and audit.

Conclusion

The PFM systems in Cordoba are generally well-functioning, with strong performance in budget comprehensiveness, transparency, and the timely preparation of financial reports. However, there are notable challenges in budget credibility, cash flow predictability, and policy-based budgeting. The province has made strides in improving its financial management through reforms and the implementation of the SUAF system, but further work is needed to ensure full integration and strengthen internal controls, particularly in the payroll system and debt management. The assessment serves as a valuable reference for the provincial government to enhance its PFM systems and align them with national and international standards.