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PSA: DR'S - Coggle Diagram
PSA: DR'S
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OBB BUDGET
Concept
Strategic integration of planning, budgeting, monitoring, implementation & evaluation
Focus on the impact/ effectiveness of projects/programs rather than just exp & output - to manage public funds efficiently
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Objectives
Translate Policies to Outcomes - provide a structured method to design & execute gov programs that can directly contribute to long-term national development goals - drive national progress
Empower Controlling Officers - gives Controlling Officers more power & responsibility to allocate & utilize resources efficiently - ensure they have necessary control to achieve specified outcomes
Improve Accountability - enhances the system of oversight and responsibility within gov - making officials more accountable for their actions & decisions
Value for Money - prioritizes exp that offers good value - emphasizing efficiency & effectiveness in the use of financial resources
Framework & Principles
Programme Based Approach - budgeting focuses on specific programs that aim to achieve ministry goals - ensure that resources are allocated to programs with clear objectives & outcomes
Joint Responsibility - Ministry of Finance (MOF), Economic Planning Unit (EPU), and Public Service Department (PSD) work together - their collective oversight is crucial to ensure financial planning can support country's broader objectives
Alignment with National Results Framework (NRF) - programs must be designed to support and contribute to NRF - ensure all programs are directly linked to national goals and objectives
Medium-Term Perspective - Budget planning considers not only the current year but also medium-term outcomes - allows for a more strategic approach to resource allocation
Performance Evaluation - Emphasize regular evaluation - ensure decisions are based on accurate and reliable evidence
Authorization to Controlling Officers - Controlling Officers get more authority to manage resources within their control - they are held accountable for achieving specific outcomes
Result Achievement Incentive - links the achievement of results to rewards and penalties - motivate officers more
Continuous Capacity Building - Provide ongoing training and development - ensure staff are equipped with the skills and knowledge needed
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Benefits
Transparency and Participation - OBB clearly show how funds are allocated and what outcomes they are expected - public can understand how money is being spent and how it contributes
Accountability - OBB establish a clear connection between funding and expected outcomes - OBB makes gov officers accountable for delivering on their commitments
Highlights Government Spending Inefficiencies - OBB helps identify areas where spending is not delivering the expected results - can improve budget mngmt
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Eliminate Redundancies and Ensure Value-for-Money - OBB emphasizes reviewing and refining programs - helps eliminate overlapping / redundant programs
Limitations
Additional Costs - OBB involves a detailed process of mapping and analyzing outcomes - lead to additional expenses (costs of data collection, analysis, and monitoring)
Identifying Outcomes - gov outcomes can be complex and multifaceted - outcomes must be measurable and well-defined
Challenges
Support & Commitment - require support from stakeholders and top mngmt - crucial for planning, monitoring, and evaluation processes
Understanding OBB - everyone involved needs to understand OBB framework - to ensure OBB can be implemented effectively
Continuous Learning and Program Review - must regularly update k/ledge & assess programs - crucial to improve decision making process
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Resource Allocation - OBB requires adequate resources for evaluation efforts (funding, tools, personnel) - crucial to assess program effectiveness
Structured Monitoring and Evaluation Framework - framework must provide clear guidelines and processes - crucial to organize monitoring & evaluation process
ACCOUNTABILITY
Concept
Definition
Accountability means taking responsibility for actions, give justification, and accept consequences if wrong
When someone is given a responsibility, they must report back on how they handled it
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Historical context
Initially, closely linked to bookkeeping
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Accountability in PSFM
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Ensure public org use funds properly, avoid corruption, and follow the law
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Dimension
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Performance-based Accountability - Measures performance against broad objectives using qualitative criteria
Importance
Ensure Wise Use of Public Funds - allow public to see the effectiveness of gov spending - can analyze whether the public fund is spent wisely
Provides Means for Corrective Action - public has the right to know what actions are taken on their behalf - can demand corrections when gov acts illegally
Improves Gov Program Performance - helps gov understand why programs fail and find ways to improve them
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Supports Good Governance - ensure the elected officials act responsibly - ensure the officials report their actions to public
Functions
As a Democratic Control Tool - A mechanism for citizens to evaluate & control gov performance through voting - essential for democratic process - allows citizens to make informed decisions
Enhance Integrity - public servants must provide transparent information & financial reports -ensure public officials act in the public’s best interest - helps prevent corruption, nepotism, and abuse of power
Improve Performance of public sector - foster individual and institutional learning - make continuous improvement
Maintain Legitimacy - ensure transparency, responsiveness, and answerability in public sector - builds public confidence
As an Purification & Catharsis - a platform for public and public sector org - allow public to express grievances and seek explanations during failure - allow officials to justify their actions
Principles
Legality
Gov officials must follow laws and regulations in all their decisions - ensure their conduct is lawful
Accountability
Officials are responsible to manage & distribute resources effectively and efficiently - ensure public resources are used wisely
Objectives
Ensure Transparent and Fair Reporting - must adhere to laws & regulations - citizen can know how the gov is functioning - build citizen trust
Ensure Identification and Punishment of Irregularities - detect financial irregularities / misconduct within public sector - hold ind accountable for any wrongdoing - maintain gov integrity
Improve Efficiency & Effectiveness - ensure public funds are spent efficiently & effectively - ensure taxpayer money is utilized in the best possible way
Types
Traditional Accountability - focuses on ensuring compliance with rules & regulations - involves adhering to established procedures & standards - crucial to maintain legality in gov operations
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Managerial Accountability - focus on the efficiency & effectiveness of resources usage - involve managers to improve performance & control costs - ensure resources are used prudently
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Program Accountability - focus on evaluating how well resources are used to achieve program objective - involve assessment on programs - ensure programs meet the goals & use resources appropriately
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Bureaucratic Accountability - focus on adherence to rules & procedures - involve close supervision - ensure gov are monitored for compliance
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Legal Accountability - Focus on fiduciary responsibilities - involves auditing, monitoring, and oversight - ensure gov actions in line with legal obligations
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Political Accountability - focus on gov's responsiveness to the needs of people who elected them - ensure the elected person address public needs & concerns
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Professional Accountability - focus on the integrity and professionalism of experts in org - ensure expertise use their expertise responsibly
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Ethical Accountability - Focus on ethical behavior in gov operations - ensure public resources are protected from fraud
Administrative Accountability - Focus on adherence to internal rules & norms - ensure employees follow established procedures and regulations
Financial (Fiscal) Accountability - Focus on compliance with laws and regulations in managing public financial transactions - ensure financial activities are recorded accurately and transparently
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Management Accountability - focus on the responsibility of managers to ensure program performance, productivity, cost control, and legal compliance - involve improve program effectiveness - ensure public resources are managed with integrity
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Program Accountability - Focus on programs evaluation (efficiency, effectiveness, economic) - ensure public resources are used wisely - ensure programs meet the goals
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External Audit Process
Planning
- To understand the entity & its activities
- To create audit plan (determine the nature, extent, timing, necessary staff & skills)
- Audit plan must include obj, scope, terms, detailed review procedure
Execution
- Fieldwork (Collect information by doing iv, procedure reviews & tests)
- Gather evidence & findings
- Prepare a draft report
Reporting
- Communicate audit findings, conclusions & recommendations
- Senior mngmt review the recommendations
- Make amendments
- Distribute final report to senior mngmt & Auditor General Office
- Provide overview to Board Audit Committee
Follow-Up
- Close the loop of auditing process
- Must reports on the correction actions taken
- Must be within 2 years from the ori audit
- Audit team assess the adequacy of corrective actions - present results to entity repr - prepare follow up report**
Re-targeting
Def: gov's strategy of revising and redirecting subsidies to ensure they are more effectively targeted to the population that need them the most - cut subsidies for wealthier people - focus on helping lower-income households
Key Elements
Remove Price Controls for Chicken & Eggs - gov remove price ceilings - limited inflation impact (difference between market price & price ceiling is small)
Reduce gov's fiscal burden - gov no longer needs to provide subsidies to maintain low price - can save gov exp
Tiered Subsidy Removals for Electricity
- Top 10% electricity consumers: gov lift subsidy
- Top 1% electricity consumers: higher electricity tariff (increase their bills by at least 25%)
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Phased Rationalization of Diesel Prices - gov will gradually adjust diesel prices over time - to reduce subsidy leakages - certain groups still get diesel at subsidized rate
Reduce subsidy leakage - gov can ensure financial support reaches those who genuinely need it - prevent misuse by others
Targeted Fuel Subsidies (RON95) - the wealthiest 20% of the population receive no / less subsidy - ensure fuel subsidy distributed to lower-income groups
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