2012年-世界发展银行全球_Province_of_Buenos_Aires_Republic_of_Argentina___Public_Financial_Management_Assessment_45页_760kb

Summary of Public Financial Management Assessment for the Province of Buenos Aires

Core Content

This report is a Public Financial Management Assessment (PFMA) for the Province of Buenos Aires, conducted jointly by the Provincial Government and the World Bank. It forms part of a broader initiative to evaluate public financial management systems in four Argentine provinces: Buenos Aires, Córdoba, Santa Fe, and San Juan. The assessment is based on 19 selected PEFA performance indicators, aiming to strengthen the province's PFM systems, identify fiduciary issues, and support the World Bank's operations.

Main Viewpoints

• Quasi-Confederal Structure: Argentina operates as a quasi-confederal state with 24 provinces and three levels of government: national, provincial, and municipal. The Province of Buenos Aires is the most populous and economically significant province, contributing over one-third of the country's GDP and housing 39% of the population.
• Autonomy and Fiscal Relationships: Provincial governments have considerable autonomy in budgetary processes, but tax revenues are mainly collected by the national government. The vertical fiscal gap is addressed through a constitutionally based tax-sharing system and transfers from the national budget. Provinces also contract significant debt to the national government.
• PFM Legal Framework: The Province of Buenos Aires has a well-defined legal and institutional framework for public financial management, with the Ministry of Finance (MOF) responsible for financial management and the Provincial General Accounting Office (GAO) for accounting and internal control.
• Key Reforms: A new provincial Financial Administration Law (LAF) was enacted in 2007, enhancing budget transparency and comprehensiveness by requiring the inclusion of state-owned enterprises' accounts, fiduciary funds, and public debt statements. The province is also implementing an integrated financial management system (SIDIF) and a modern debt administration system (SIGADE).
• PFM Performance: The province's budget process and PFM systems are relatively well-developed, with strong accounting practices, reliable financial reporting, and a good control environment. However, several challenges remain in terms of performance orientation, cash flow predictability, and internal control effectiveness.

Key Information

Economic and Institutional Framework

• Provincial Government Structure: The non-financial public administration includes three subgroups: Central Administration (CA), Decentralized Entities (CDEs), and Non-consolidated Entities.
• Fiscal Year: January 1st to December 31st.
• Currency: Argentine Peso (AR$), with 1 US$ = 4.49 AR$.
• Key Institutions:
  • MOF: Ministry of Finance.
  • GAO: Provincial General Accounting Office.
  • PGT: Provincial General Treasury.
  • COA: Court of Accounts.
  • PPO: Public Prosecutor Office.
  • ARBA: Tax Collection Agency of the Province of Buenos Aires.
  • BAPRO: Bank of the Province of Buenos Aires.

PFM Reforms

• Legal Reforms: The LAF (Financial Management Law) was enacted in 2007, improving transparency and comprehensiveness of the budget process.
• Information Systems: Implementation of SIDIF (Integrated System of Financial Information) and SIGADE (Debt Management & Analysis System) is ongoing.
• Tax Reforms: The provincial government has made progress in tax administration and collection between 2008 and 2009.

PFM Performance Highlights

• Budget Comprehensiveness and Transparency: The provincial budget law is comprehensive, covering more than 95% of non-financial public administration resources.
• Accounting and Reporting: The province has a uniform and reliable accounting system, with comprehensive financial statements and regular controls.
• Control Environment: Internal controls are effective, with a commitment stage for most expenditure categories and procedures that limit commitments to available cash.

Key PFM Challenges

• Policy-Based Budgeting: The province's budget system remains input-focused and lacks performance orientation. Multi-year budgeting has not been effectively developed.
• Cash Flow Predictability: Monthly cash flow forecasts are not accurate due to proportional distribution assumptions. Reliable information on expenditure ceilings is only available one month in advance, and frequent reallocations reduce predictability.
• Control Framework Effectiveness: The implementation of SIDIF is incomplete, and payroll controls are weak due to limited integration with human resources data, delayed record updates, and inadequate internal controls. Internal audit responses are limited, reducing their effectiveness.
• Internal Audit: The internal audit function is not fully effective, with limited coverage and management responses to findings.
• Accounts Reconciliation: While bank reconciliations are regular, reconciliation of suspense accounts and advances is less consistent.
• External Audit: The scope and nature of audits are adequate, but follow-up on recommendations is limited.

Summary of PEFA Indicators