2001年-世界发展银行全球_Peru___Country_Financial_Accountability_Assessment_87页_4mb

Peru Country Financial Accountability Assessment Summary

Core Content

This report, prepared in February 2001, evaluates the financial accountability framework in Peru's public sector, focusing on its strengths and weaknesses, particularly in relation to the use of World Bank funds under non-investment lending operations. It highlights the need for improved transparency, oversight, and accountability across different levels of government.

Main Findings and Conclusions

1. Fiduciary Framework

• Supreme Audit Institution (CGR): The CGR has a legal mandate to oversee the legality of public sector operations, including budget execution and credit operations. However, its effectiveness is limited due to:

  • Under-funding: The CGR's budget has been shrinking in real terms, and its proposed 2001 staff size (915) was only partially approved (615).
  • Limited Oversight: The CGR has not been able to effectively supervise the Ministry of Defense, despite its significant budget share (15% of the Central Government budget).
  • Weak Reporting: Audit findings are not adequately disseminated to Congress and the public, undermining transparency.

• Prosecution of Malfeasance: Only 26 out of 303 cases against public officials for malfeasance were closed between 1993 and Mach 2000. This is attributed to the lack of specialized courts and limited resources for the CGR to pursue these cases.

• Anti-Corruption and Ethics: There is no comprehensive legislation, funding, or enforcement mechanism for ethics and anti-corruption in the public sector. The CGR proposed a national anti-corruption plan, but it has not been implemented.

• Performance Auditing: The CGR is required to assess management performance in the Annual General Accounts, but the mandate is unclear. Given limited resources and increased congressional interest in fiscal oversight, a cost-benefit analysis is recommended.

2. Financial Management Systems

• Integrated Financial Management System (SIAF-SP): SIAF-SP is a robust system that provides detailed financial information and supports effective budget control and cash management. It is applied to 63% of the 2001 national budget.
• Municipal Financial Management: Most municipalities do not have adequate financial management systems and are unable to comply with current financial administration legislation. A municipal version of SIAF is being developed, but its implementation is delayed.
• Disbursements: The SIAF-SP system has been extended to the Ministry of Defense and Interior, but the use of advances requires detailed documentation, which is not always ensured.

3. Budgeting and Personnel

• Congressional Oversight: The budget process is not fully under congressional control. The Ministry of Economy and Finance can allocate available funds to discretionary spending without congressional input, and emergency decrees are used to modify budgets.
• Personnel Management: The CGR and other financial management bodies have competent and dedicated staff, but their independence and resources are not sufficient to ensure full accountability.

Key Recommendations

• Supreme Audit Institution (CGR):

  • Congress should ensure the CGR's budget is not jeopardized and fulfills the legal minimum.
  • Annual in-depth audits of the Ministry of Defense should be conducted to ensure compliance with procurement guidelines and proper documentation of fund use.
  • Final audit reports should be made publicly available within six months of fieldwork.

• Disbursements:

  • The extension of SIAF-SP to the Ministry of Defense and Interior should include full documentation of fund usage.

• Reporting:

  • External reporting should be done at the program level and on a half-yearly basis, rather than only annually.
  • Reports could be separated by major public sector components and not necessarily consolidated.

• Budgeting:

  • Limit the use of emergency decrees and ensure transparent guidelines for budget implementation.

Control Environment

Peru's public sector is divided into five categories:

1. Central Government: 557 entities, with SIAF-SP applied to 63% of the 2001 national budget.
2. FONAFE (National Fund for Financing Government Enterprise Activity): Includes 42 public enterprises and the Social Security System.
3. DNPP (General Directorate for the Public Budget): Oversees 99 institutions, 3 service entities, 1 housing fund, and 87 municipal enterprises.
4. Municipalities: 1,826 municipalities, contributing 3-4% of the national budget.
5. Public Beneficiary Societies: 101 societies in 24 departments and the Constitutional Province of Callao, raising 90% of their resources through voluntary and philanthropic activities.

Legal and Regulatory Framework

• The financial administration framework is supported by a comprehensive set of laws and regulations, including the Political Constitution of Peru (Chapter IV), which outlines the legal basis for public financial management.
• The National Control System (SNC) law establishes the CGR as the supreme audit institution with broad powers to supervise the use of public resources.
• The CGR is responsible for ensuring the legality, efficiency, and transparency of public sector operations.

Conclusion

Peru has made progress in developing a financial accountability framework, including the implementation of SIAF-SP and the CGR's role in oversight. However, the framework is not fully effective due to under-funding of the CGR, limited dissemination of audit findings, and weak financial management in local governments. To improve transparency and accountability, the CGR needs more resources, independence, and public access to audit results. Additionally, the development of a municipal version of SIAF and the limitation of emergency decrees in budgeting are critical for strengthening the financial management system.