2003年-世界发展银行全球_Ethiopia___Country_Financial_Accountability_Assessment_Volume_1_Main_Report_82页_5mb

Ethiopia Country Financial Accountability Assessment (CFAA) Summary

Core Content

The Ethiopia Country Financial Accountability Assessment (CFAA) was a collaborative initiative conducted between April 2001 and November 2002. It aimed to evaluate the effectiveness of financial accountability arrangements in both the public and private sectors, particularly in the context of the Federal Government's decentralization strategy and ongoing reforms. The assessment was carried out by a joint team of Ethiopian officials, World Bank staff, and donor-funded consultants, and it included visits to four regions: Amhara, Tigray, Somali, and SNNP.

The CFAA was intended to support the government and its development partners in understanding the financial management landscape, enabling more effective capacity-building programs. It also provided a strategic framework for identifying and addressing weaknesses in financial accountability systems.

Main Report Structure

The main report is divided into several sections:

• Introduction: Sets the context for the CFAA.
• Public Sector - Federal Government: Focuses on budgeting, accounting, financial reporting, and internal controls.
• Public Sector - Oversight Arrangements: Discusses external audit, parliamentary oversight, and the Federal Ethics and Anti-Corruption Commission.
• Public Sector - Regional Governments: Reviews the financial accountability status in the four regions.
• Non-Governmental Organisations (NGOs): Highlights challenges in resource allocation and monitoring.
• Private Sector: Notes the relatively low development of financial accountability in the private sector.
• Accountancy Profession: Identifies the lack of a national accounting body and the need for improved education and training.

Main Points and Key Findings

• Progress in Federal Budgeting: The Federal Government has made considerable progress in rationalizing and strengthening its budgeting processes. However, there are still issues related to preparation, completeness, and planning that require attention.
• Decentralization Challenges: The devolution of financial and human resources to Woredas (local governments) has introduced new challenges, particularly in terms of capacity building and internal control systems.
• Accountability and Risk: The assessment identified varying levels of fiduciary risk across the four regions, indicating the need for tailored approaches to address specific weaknesses.
• Need for Institutional Strengthening: There is a clear need to strengthen internal audit and other oversight mechanisms at both federal and regional levels to ensure effective financial accountability.
• Capacity Building Initiatives: Several capacity-building programs were proposed or already in place, including the Expenditure Management Control Programme (EMCP), Public Service Delivery Capacity Building Program (PSCAP), Capacity Building for Decentralised Service Delivery (CBDSD), and Civil Service Reform Programme (CSRP).

Key Issues Identified

• Comprehensive Financial Reporting: The current financial reporting systems do not fully cover all government funds, leading to incomplete and delayed information.
• Weakness in Internal Controls: There are concerns regarding the effectiveness of internal controls, particularly in the context of decentralization.
• Backlog in Audits: The audit backlog is a significant issue that needs to be addressed, especially with the role of the Federal Auditor General (OFAG).
• Need for Legislative Reform: There is a need for legislative reform, particularly in the area of the Commercial Code of 1960, to enhance financial accountability.
• Professional Development: The accountancy profession in Ethiopia lacks a national body and requires enhanced education and training in both academic and practical settings.
• Public Access to Information: There is a need to improve public access to information through proposed legislation and initiatives.

Risk Assessment

The assessment used fiduciary risk diagrams to illustrate the current levels of risk and the potential impact of interventions over a three-year time horizon. These diagrams showed that, with appropriate interventions, most of the identified weaknesses could be reduced to Moderate Risk or lower. The diagrams were partially subjective and not a direct interpretation of the report's conclusions, but they provided a visual snapshot of the situation.

• High Fiduciary Risk: Indicates areas where significant risks exist and require immediate attention.
• Substantial Fiduciary Risk: Suggests areas with notable risks that need urgent intervention.
• Moderate Fiduciary Risk: Indicates areas where risks are manageable but still require attention.
• Negligible or Low Fiduciary Risk: Suggests areas with minimal risk and good practices in place.

Development Action Plan (DAP)

The DAP outlines a series of key actions and sub-activities aimed at improving financial accountability across Ethiopia. It includes:

Key Action 1: Development of detailed and coordinated implementation plan for CFAA areas

• Sub-Activity: Coordinate fiscal decentralization efforts in parallel with budget planning by MoFED.
• Responsibility: Lead by MoFED, with support from other regions and line ministries.
• Timing: 2003/04 (short-term), 2004/05–2007/08 (medium-term), and 2007/08+ (long-term).
• Expected Benefits: Improved resource allocation, planning, and monitoring. Support is needed for managing the change process in MoFED and BOFED to ensure budget generation has sufficient capacity and correct sequencing.

Key Action 2: Creation of a Financial Information Systems Strategy and implementation timetable

• Sub-Activity: Develop and implement a financial information systems strategy.
• Responsibility: Lead by MoFED, with support from line ministries and regions.
• Timing: 2003/04 (short-term), 2004/05–2007/08 (medium-term).
• Expected Benefits: Establish an IT framework for coordinated and sustainable implementation of initiatives at both federal and regional levels. Addresses the integration of IFMS in new regional/federal relationships and local support capacity.

Key Action 3: Development of a three-year rolling integrated plan for Public Expenditure Management (PEM)

• Sub-Activity: Develop a three-year rolling integrated plan for PEM.
• Responsibility: Lead by MoFED, with support from line ministries and regions.
• Timing: 2003/04 (short-term), 2004/05–2007/08 (medium-term).
• Expected Benefits: Establish a strategic framework for PEM, which includes appraisal of existing plans and addressing gaps.

Conclusion

The CFAA process provided a comprehensive evaluation of Ethiopia's financial accountability arrangements and highlighted the importance of continued capacity-building efforts. It emphasized the need for the Federal Government to maintain ownership and work in a more harmonized manner with donors to achieve realistic and achievable targets. The DAP outlined a strategic approach to addressing the identified issues, focusing on improving financial systems, strengthening internal controls, and enhancing the role of the accountancy profession. The assessment also underscored the importance of addressing regional differences in financial accountability and the need for a tailored approach to support the devolution process.