2002年-世界发展银行全球_Albania___Country_Financial_Accountability_Assessment_56页_2mb

Albania Country Financial Accountability Assessment Summary

Core Content

This report provides an assessment of financial accountability in Albania, focusing on both public and private sectors. It was prepared by a World Bank Task Team, including Sanjay Vani, and with input from the Government and private sector counterparts. The report outlines key issues in financial management and offers recommendations to strengthen accountability and reduce fiduciary risks.

Main Purpose

The purpose of the Country Financial Accountability Assessment (CFAA) is to evaluate the financial accountability framework in Albania, particularly in relation to the use of public and international funds. It aims to identify systemic weaknesses, provide an objective diagnosis of problems, and offer recommendations to improve financial management and governance.

Key Recommendations

• Enact a Law on Public Sector Internal Audit: To establish a solid legal basis for internal audit in the public sector.
• Strengthen Internal Controls: Particularly in the treasury and line ministries, including improving cash management and internal audit functions.
• Enhance Internal Audit Capacity: By establishing effective internal audit structures in line ministries and pursuing twinning arrangements with a well-established SAI in the region.
• Build Capacity in the Accounting Department (MoF): To prepare consolidated financial statements for the Government using accrual-based accounting.
• Improve Audit Capacity for Bank-Funded Projects: By providing formal training to auditors on Bank policies and procedures, and ensuring audit firms are capable of auditing such projects.
• Enact a New Law on Accounting: Clearly differentiating between various entities (banks, insurance companies, listed companies, etc.) to determine applicable accounting standards.
• Implement Integrated Financial Management Systems: To automate treasury operations and ensure uniform and integrated accounting and reporting software across budget spending units.
• Computerize Employee Payroll: By creating a centralized and secure employee database.
• Strengthen Skills of Line Ministry Staff: Through extensive training programs on programmatic budgeting.
• Specify Criteria for Capital Projects: Including technical, economic, financial, environmental, and social criteria.
• Introduce Budget Evaluation Function: To enable proper evaluation of budget outcomes and increase accountability of project managers.

Key Issues Identified

Public Sector

• Weak Internal Audit Function: Lack of a solid legal basis and insufficient capacity.
• Inadequate Cash Management: Weak internal controls in the treasury, particularly in reimbursement and revenue collection processes.
• Limited Parliamentary Oversight: The Parliamentary Economic, Finance, and Privatization (EFP) committee lacks research and analytical capacity.
• Inconsistent Accounting Practices: The Treasury uses cash-basis accounting while line ministries use modified accrual basis, leading to inconsistencies in financial reporting.
• Need for Institutional Strengthening: Especially in the Social Insurance Institute (SII), which manages a large portion of public resources.

Private Sector

• Need for Differentiated Accounting Standards: A clear distinction is required between different types of entities for determining applicable accounting standards.
• Weak Audit Capacity: Limited experience and understanding of international auditing standards (ISA) among auditors.
• Need for Training and Capacity Building: To improve the skills of auditors and the accounting profession as a whole.

Legal and Institutional Framework

• Albania has made progress in establishing a legal and institutional framework for accountability, including the Constitution, laws on budgeting, and the role of institutions such as the High State Control (HSC) and the People's Advocate (Ombudsman).
• The HSC is the Supreme Audit Institution (SAI) in Albania, operating independently and following INTOSAI standards.
• The Constitution mandates transparency in the workings of the Parliament and its committees, which is essential for accountability.

Budgetary Controls

• Albania has a single consolidated budget submitted to Parliament for approval, covering both central and local government budgets.
• The Organic Budget Law (1998) governs the budgetary process, and the Medium Term Expenditure Framework (MTEF) has been introduced to improve resource allocation and policy linkage.
• The MTEF process is not institutionalized in the Budget Law, and its inclusion is recommended to ensure long-term sustainability.

Financial Accountability Risks

• The current framework poses significant fiduciary risks, particularly in the use of Bank funds.
• The lack of strong internal controls and audit capacity is a major concern.
• The absence of a clear legal basis for internal audit in the public sector needs urgent attention.

Conclusion

Albania has made substantial progress in establishing a legal and institutional framework for financial accountability, especially in the context of transitioning from a communist regime to a multiparty democracy. However, several challenges remain, particularly in strengthening internal controls, audit capacity, and the legal basis for financial management. The CFAA highlights the need for comprehensive reforms and technical assistance to ensure the proper use of public and international resources, and to build a sustainable financial accountability system.