2012年-世界发展银行全球_Republic_of_South_Sudan_Public_Finance_Management_Assessment___Western_Equatoria_State_60页_770kb

Summary Assessment of Public Finance Management in Western Equatoria State

Core Content

This report presents a Public Finance Management (PFM) assessment of Western Equatoria State (WES) based on the Public Expenditure and Financial Accountability (PEFA) framework, conducted in June 2011. The assessment highlights the strengths and challenges of PFM systems in WES, with a focus on budget preparation, revenue administration, internal controls, and donor coordination.

Main Points

Strong Positive Factors

• Budget Preparation: The budget is prepared in line with state government policy and the GRSS framework. It has evolved over time with technical assistance and includes a clear classification system that supports policy-based budgeting.
• Electronic Payroll System: A Southern Sudan Electronic Payroll System (SSEPS) has been implemented, centralizing payroll processing and improving controls. Payroll adjustments are based on written information, and internal audit checks the payroll cycle.
• Integrated Financial Management Information System (IFMIS): The FreeBalance system was introduced in 2010, and monthly budget performance reports were generated, though they lacked meaningfulness. The accounting function in Yambio is relatively strong.
• Internal Audit Function: The Internal Audit Department (IAD) in MoFTI is well-established with 15 staff, including 10 auditors. It conducts financial audits, investigative assignments, and some systems audits, and provides comprehensive reports to key stakeholders.
• Legislative Oversight: The State Legislative Assembly (SLA) has increased its assertiveness in analyzing the draft budget. It requires more technical support to avoid errors and to scrutinize external audit reports.
• Revenue Administration: The Western Equatoria Revenue Authority (WERA) was established in 2010 and is supported by UNDP through a resident revenue specialist. A tax awareness campaign and registration drive have been launched, with over 750 taxpayers registered and 300 assessed. However, the absence of a computerized TIN system limits rigorous tax collection.

Key Remaining Challenges

• Budget Performance and Financial Statements: Meaningful budget performance reports and annual financial statements are not produced, making it impossible to assess the credibility and predictability of the budget.
• Procurement System: While competitive procurement is used, the procedures lack effectiveness in areas such as tender evaluation, documentation, and the establishment of an independent complaints mechanism.
• Internal Control Weaknesses: There are significant control weaknesses in areas like expenditure commitments, final accounts, use of government property, accountability reports, staff incentives, and external audit coverage.
• PFM Law: A PFM law at the GRSS level is still pending, despite a draft prepared over three years ago. This is a prerequisite for the development of similar laws at the state level.
• External Audit: The external audit function is not active, with no audit reports issued by the Audit Chamber in Juba.

Key Information

Budget Composition

• Financial Resources: The total approved budgets for 2009, 2010, and 2011 are SDG 113.3 million, SDG 117.7 million, and SDG 143.2 million respectively.
• Transfers from GRSS: Comprise the majority of the budget, with percentages decreasing slightly over the years.
• Own Revenue: State-level own revenue increased from SDG 1.6 million in 2009 to SDG 6 million in 2011, with tax being the largest component.

Revenue Sources

• Tax Revenue: About 60% of domestic revenues are from taxes, with personal income tax being the largest source.
• Non-Tax Revenue: Includes land tax, forest products, animal resources, and various service charges.

Institutional Framework

• Legal Framework: PFM is governed by the Interim Constitution of Southern Sudan (ICSS) and state-level interim constitutions. The State Taxation Act was enacted in 2010.
• Institutional Development: The State Revenue Authority (WERA) was established in 2010, and the IAD in MoFTI is well-established.

Donor Interaction

• The WES government and donor partners have improved coordination, but there is a need for formal memorandums of understanding to enhance transparency and accountability.

Performance Indicators

Notes

• NR = Not Rated (data not available)
• NA = Not Applicable (not applicable under the current situation)
• ▲ = Measures being taken now that should result in an improved rating in the future
• M1 and M2 are scoring methodologies defined in section 3.1 of the report.

Conclusion

The PFM system in Western Equatoria State has made progress in areas such as budget preparation, electronic payroll systems, and internal audit. However, significant gaps remain in budget performance reporting, revenue administration, procurement procedures, and external audit. Strengthening these areas is essential to ensure a credible and transparent PFM system. A PFM law at the GRSS level is a critical step in enabling similar laws at the state level.