PDP is part of a consortium for this three year £9.8 million program of technical support to the Ministry of Finance. The purpose of the program is to provide for effective implementation of public financial management reforms in key Afghan line ministries and at the provincial level.

PDP provided the services of a Program Budgeting Capacity Development and Change Management Adviser to undertake an assessment of the existing general budget capacity, existence and quality of strategy and existing TA of a sample of line ministries intended to be included in the next phase of the Program Budgeting (PB) roll-out. Primarily, this involved the provision of advice to the PB Advisors in MoF on PB roll-out and assessing institutional and management reforms in line ministries participating in PB and developing a strategy for institutional reform and change management for the rollout in additional line ministries.

PDP provided technical assistance to support the Administrative Reform and Civil Service Commission (IARCSC) in coordination with the Administrative Reforms Secretariat in public administration reform and to improve public service management of the front-line service delivery departments and government agencies. The purpose was to assist priority departments responsible for basic services to improve the performance of services delivered by:

• streamlining functions
• eliminating unnecessary activities, overlaps and duplications
• focusing resources on core services
• considering how electronic governance could assist
• developing sustainable capacity within the service delivery departments
• providing a basis for replication and scaling up of the service delivery improvement initiative.

A series of functional reviews was completed focusing on:

• improving management
• strengthening accountability
• maximising the use of information to increase accountability
• financial incentives and fiscal sustainability.

PDP organised and ran a study tour for staff of the Brazilian Ministry of Planning, Budget and Administration to examine public management approaches and innovations in Australia. Practical knowledge was imparted on Australian Government processes in the areas of planning, budgeting, financing, execution and reporting of the government's programs so that these could be used to improve similar processes in Brazil. Participants visited a variety of government agencies, including the Federal Department of Finance and Administration, where they were presented with material aimed at assisting with the preparation of Brazil’s Multi-Year Plan.

PDP organised and led a study tour for the Kazakhstan Government to Australia, to discuss the country’s public management practices and evaluate how best to apply the lessons to the Kazakh context. PDP arranged meetings with the Commonwealth Department of Finance, the Australian Public Service Commission, the New South Wales Departments of Health and Education and other government offices to discuss the current status of reform, the development of effective monitoring and evaluation, and strategies for managing change. A key focus was on management of the health and education sectors and integration of performance management and results-based budgeting into the public sector.

PDP organised and led a study tour on Sustainable Fiscal Management, with the purpose of building the capacity of senior and influential officials of the participating governments to improve fiscal policies and budget systems in their countries. PDP conducted workshops on the priorities of the delegation, the Australian and New Zealand fiscal policy reforms and their level of success, and the roles of relevant government agencies. This was followed by site visits to various government agencies to discuss relevant aspects of intergovernmental fiscal issues. PDP staff also conducted a workshop to explore the relevance, to China’s economic and social circumstances, of the various principles which make up the prudent fiscal policy.

PDP was engaged to undertake an Education Finance and Expenditure Analysis with a focus on improving the effectiveness of teaching and learning in primary schools through higher education, including non-formal education activities, financed by the public budget. Key tasks included:

• examining revenue sources and the effects of changes in revenue amounts on the education system
• reviewing the budget process and effectiveness of expenditure allocation to the education sector
• examining the intergovernmental fiscal relationships and suggesting improvement
• examining the technical and external efficiencies
• building the capacity of MoE in education expenditure analysis techniques to plan, budget and use resources efficiently.

PDP was responsible for developing a medium term program to assist the Government in the preparation of the education budget for the Year 2003, with the aim of improving the efficiency and effectiveness of public spending in the sector.

PDP provided assistance to the Prime Ministers Court in performing a benchmarking exercise evaluating priority processes of the following five ministries: Survey and Land Registration; Municipality and Urban Planning; Electricity and Water Services; Commerce and Industry; and Roads and Sewerage. This included responsibility for: 

• benchmarking for various priority services under each of the selected ministries 
• defining Key Performance Indicators (KPIs) and establishing service standards for various services provided within the selected ministries 
• comparison of the KPIs and service standards with established standards of similar government ministries and departments in Australia and the United Arab Emirates 
• commentary and comparison of the said processes indicating the environment in which the process/service operates.

PDP staff participated in a joint World Bank/DFID mission to review the Reforms in Budgeting and Expenditure Control (RIBEC) Project. In particular, the team examined the policy, planning and budget system in Bangladesh and recommended strategic interventions that could assist the authorities in making the budget a more effective instrument of economic management.

PDP provided the services of an Urban Governance Specialist to identify best practices and prepare policy recommendations for participation of the urban poor in municipal governance. In particular, the consultant was charged with identifying best practice participatory pro-poor planning and monitoring in urban infrastructure service delivery and developing appropriate planning and monitoring systems for selected municipalities.

The consultant prepared a report identifying a framework for the participation of urban poor in municipal governance and an action plan for institutionalising the framework in municipalities. Furthermore, the consultant prepared background papers for a national workshop identifying issues related to participatory pro-poor planning, budgeting and monitoring of municipal services.

PDP provided technical assistance in the development of Training of Trainers Manuals. The purpose of the manuals was to familiarise the trainers, as well as the bank officials, with the new Bangladesh Bank directional guidelines on internal control and compliance, credit risk management and anti-money laundering. The manuals aimed to improve the commercial banks’ internal control and compliance, credit risk management and anti-money laundering culture, establish minimum standards for segregation of duties and responsibilities in these respects, focus on recording, reporting and compliance and assist in the on-going development of risk management in the banking sector. The manuals guide the banks in setting up appropriate organisational structures, policies and procedures, and assist in developing a clear understanding and appreciation of how industry best practices impact on individual banks through the implementation of the Bangladesh Bank Guidelines.

PDP provided the services of an Organisational Structure and Management Systems Design Specialist to impart expert advice on the organisational structure and management system design of the new National Revenue Agency (NRA). The creation of the NRA, which integrated the functions of the General Tax Directorate (GTD) and the collection function of the National Social Security Institute (NSSI), is central to the Bulgarian Government’s revenue administration modernisation program.

The consultant was responsible for transformation of the institution/entity, creating the management structure, building executive and managerial capacity, developing related management information systems including customisation, and strengthening the integrity of the NRA. Organisational development was focused on:

• development of an adequate organisational design to implement the NRA
• design of a management system for the NRA covering all levels of the agency, including accountability, monitoring, internal controls and corruption management.

A management information system (MIS) was deployed throughout the NRA. This component also provided management and technical training to staff to raise the level of agency professionalism and integrity.

PDP provided the services of a Policy Economist to prepare a chapter on Cambodia’s economy and social development for the Asian Development Outlook Publication. A key focus of the country study was reform of public expenditure management including social sector financing, service delivery and expenditure allocation.

PDP assisted in the Integrated Fiduciary Assessment and External Advisory Panel (EAP) review of the Public Financial Management Reform Program in Cambodia. PDP undertook a Public Expenditure and Financial Accountability (PEFA) based fiduciary assessment of the PFM task environment and assessed the effectiveness of technical assistance being provided to the PFMRP in relation to: (i) the achievement of the Program’s performance targets; (ii) the technical advisers’ contributions to capacity building; and (iii) within the context of the institutional strengthening objectives. Based on the PEFA assessment and EAP review, PDP made recommendations necessary for enhancing program implementation.

PDP undertook the final evaluation of the Fiscal Decentralisation Support Project in terms of its design, implementation and overall achievements. The purpose was to evaluate the efficiency, effectiveness and relevance of the program, the sustainability of program results, and the level of satisfaction of program stakeholders and beneficiaries with the results. Key recommendations were provided to UNDP on the need for follow-up on the current interventions, and future support to fiscal decentralisation.

As part of its focus on establishment control, PDP assisted the Ministry of Economy and Finance (MEF) to prepare a pilot establishment register. The register consists of a list of approved posts for which budget provision has been made and serves to control appointment, transfer and departure of employees between posts and into/out of the civil service.

Key tasks of the consultant included: 

• conducting a review of the current system of establishment control and appropriate best practices to control the establishment in the Cambodian context
• rationalising personnel management by improving the human resource database by developing the establishment register 
• assessing the capacity needs of the MEF Personnel Department (PD) in relation to establishment control and articulating a program of training
• providing advice and assistance on matters relating to workforce management/establishment control.

PDP provided a team of specialists to form an External Advisory Panel (EAP) to review progress in implementation of the Royal Government of Cambodia’s Public Financial Management Reform Program (PFMRP). The EAP served as an advisory body to the Ministry of Economy and Finance (MEF) and Development Partners (DPs), providing independent and comprehensive technical assessments of PFMRP progress. Specifically, the EAP provided assessment on:

• the effectiveness of technical assistance provided to the PFMRP in relation to both the achievement of the Program’s performance targets and technical advisers’ contributions to capacity building
• the effectiveness of the PFMRP within the context of the institutional strengthening objectives
• the quality of MEF’s internal annual planning and programming, monitoring and reporting systems for the PFMRP
• developments in relation to risks identified by the initial PFMRP risk management matrix and any associated needs for updating of the matrix
• the performance of donors in fulfilling their roles and tasks within the context of the agreed Partnership Principles and in particular the effectiveness of the donor coordination mechanism and MDTF management and participation.

PDP provided technical assistance to strengthen the Ministry of Finance (MOF) and Ministry of Planning (MOP) for the purpose of initiating a new market oriented planning framework and public expenditure programming process.

The project focused on reform of economic planning and management processes, and assisted in institutionalising reforms in strategic planning including the use of a medium term strategy, macro and sector policy, public expenditure programming, capacity building in formulating consistency framework and public expenditure programs. A comprehensive PIP process was developed including performance indicators under a national PIP M&E system, with effective PEM/PIP processes linking the Ministries of Planning and Finance. Assistance also aimed to sustain and improve the government’s capacity to allocate expenditure and address absorptive capacity constraints through the operations of the PIP Unit.

PDP assisted the Government of Cambodia to maintain and expand its strategic planning capacity, strengthen the linkages between the public investment program (PIP) and the budget cycle and to develop the human resources required to implement proposed activities. Assistance incorporated the design of PEM management systems, including public expenditure review and monitoring and evaluation, and PIP integration and use in national budget preparation. A review of PIP/budget planning processes was conducted and recommendations made on new mechanisms linked to macroeconomic policy and the expenditure framework and the integration of capital and recurrent budget allocations with the PIP processes developed under Phase I of this TA. Extensive skills transfer was carried out through formal and non-formal training in public expenditure management.

PDP was engaged to undertake an institutional assessment and diagnostic review in order to develop a roadmap to implement the Public Financial Management Reform Program in the three line ministries Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Rural Development (MRD), and Ministry of Water Resources and Meteorology (MOWRAM) dealing with rural development. This included a comparative study of the progress of internal audit functions within the Ministry of Economy and Finance (MEF), the three line ministries, and selected provincial departments and districts, detailing activities to strengthen public financial management (PFM) and organizational development of internal audit functions. A detailed capacity building and training plan was prepared to implement PFM measures.

PDP’s team also assisted in formulating a roadmap for institutional strengthening of the National Audit Authority (NAA) and improving the capacity in undertaking performance audit of social sector spending and rural development projects. This included initiation of preparatory work to determine the terms of reference and costs for building a network of internal audit institutions and NAA for an improved interface between external audit and heads of internal audit departments.

PDP provided consulting services to assess the needs and capability gaps of both central and sub-national agencies involved in fiscal reform. It involved extensive consultations with the Ministry of Finance (MoF) and the State Authority of Taxation (SAT) on key areas of fiscal reform, focusing on public expenditure management (PEM), the development of a Single Treasury Account System (STA), and tax policy and administration. Assistance was provided in developing strategies identifying the financial, human, institutional resources needed to successfully carry out fiscal reforms and indicated future areas for action, drawing upon international experience as well as the experience with implementation of pilot reforms in some agencies and provinces in China. Recommendations were made on future cooperation and technical assistance with a view to developing partnerships with donor agencies assisting the fiscal reform process.

PDP prepared the Social Sectors chapter of the PIER, including a review of documents relevant to the social sectors (education, health, gender and youth issues) and a review of trends in Fiji’s social sector indicators. The consultant reviewed, analysed and reported on the growing incidence of poverty and trends in access to health care, education and other social services, and analysed the affordability of the government’s education, health and welfare expenditure programs (which included identifying supply and demand constraints to education, health and welfare service provision). The report provided constructive comment on current government policies including the public subsidy and pricing policy in the social sector. It also assessed the relevance of Fiji’s public investment program for the provision of social services and the institutional framework and size of the education, health and welfare sectors in light of future growth and development requirements.

PDP assisted the Ministry of Finance and Planning to select and implement new financial software packages appropriate for public sector application. Assistance was provided to review the status of the SAP software implementation and to assess the functionalities and capacity of SAP and other financial software to meet the likely new Financial Management Reform (FMR) requirements and the potential to support accounting and reporting requirements during the transitional period. Recommendations were made on the selection and implementation of suitable software, given the revised PFMA requirements, and a users' training program was developed to ensure that users understood the functionalities of the system and how to use the system for day-to-day operations.

PDP provided the services of a Public Finance Specialist to undertake a financial management assessment of the Regional Pacific Islands Sustainable Energy Project’s executive agencies (in Papua New Guinea, Solomon Islands and Fiji) and fund manager (in Australia). The consultant provided recommendations on common financial report formats, so as to facilitate the aggregation of data by the World Bank, and disbursement arrangements for each agency, taking into account Government procedures and the needs of the project.

PDP provided long-term technical assistance aimed at improving the performance of the fiscal system by addressing its shortcomings and building technical capacity. The project focused on five main areas:

• broadening of the tax base and strengthening tax administration
• reducing the burden on budget outlays on interest payments, civil service salaries and pensions obligations, as well as subsidies to public enterprises
• overhauling the manually operated budgetary system by revising procedures for its formulation, execution and review, to be replaced with a computerised system
• revising the method of budgetary allocations by means of economic analysis that is reoriented toward addressing issues relating to poverty reduction or promoting growth
• institutional strengthening in the areas of public enterprise reform, strengthening of public-private partnerships, improving public administration and enhancing decentralised service delivery.

PDP supported the public management reforms of the Kerala State Government with a focus on design of effective institutional and structural reforms and process measures to improve the state’s public finances and building the necessary capacity within the state government to carry them out. A functional and systems review of finance and revenue agencies was undertaken and a reform implementation strategy designed. The strategy aimed to help the state government to formulate tax and non-tax reform measures to enhance revenue raising capacity, upgrade the institutional capacity of the Finance Department to manage and control public spending, introduce greater accountability and transparency in budget design and strengthen the capabilities of local bodies to assume greater responsibility for social spending and make their functioning transparent and accountable. A further series of functional and expenditure reviews were completed for state agencies and local authorities so that reform of pricing and service delivery in key areas such energy and water could be designed.

PDP designed a reform implementation plan with a focus on revenue and budgeting and budget management agencies, identified the institutional requirements for promoting fiscal responsibility, and introduced multi-year budgeting. Measures were proposed to strengthen the capacity of the non-tax revenue cells in the Finance Department to levy adequate user charges on social services. A major component of the project was the introduction of a Value Added Tax (VAT) in Kerala and a review of the tax structure and revenue buoyancy of stamp duty and registration fees, motor vehicle taxes, state excise duty and other minor taxes.

PDP undertook a systematic analysis of the financial issues related to the civil service establishment in regions (provinces/kabupatens) and the implications inherited by decentralisation, and constraining or creating opportunities for modernising their management systems. The analysis focused on emphasising the opportunities and constraints and discussing these within the framework of options in the short, medium and longer term. Particular attention was given to existing financial data on personnel in regions, relating these to budgets, and to establishing the levels of financial constraint that staff expenditures represent in the budget realisation.

PDP was engaged to develop government capacity to guide public expenditure management reforms and to focus assistance on the design of fiscal decentralisation measures. The overall aim was to advise the Ministry of Finance on the structure of the budget and the design and financing of intergovernmental transfers within the framework of UU22/1999 and UU25/1999.

PDP undertook a diagnostic study of NTT Province and kabupaten PEM system, and prepared reports on PEM performance and the implications for decentralisation, including the role of the DAU and DAK in the finance follows functions model. The report analysed the implications of proposed implementation procedures and regulations for the recently passed laws on decentralisation for the management of public expenditures, especially on how they might impinge on public expenditure outcomes under decentralisation arrangements.

PDP provided assistance to build the technical capacity of the Partnership for Governance Reform (PGR) to support best practice public sector reform covering advocacy at central and regional/provincial government level and the design and implementation of assistance at the regional/provincial level. The PGR focus was on three complementary areas aimed at assisting national and sub-national governments in designing and implementing reforms in public financial management aligned with the civil and administrative reforms required to improve public sector performance:

• continued implementation of pilot reforms in the Yogyakarta regional governments supported by the PGR
• closer interaction with MENPAN in central government agency structural reforms that reflect acceptance of the comparative benefits provided by the PGR and the key role played by the Intergovernmental Working Group
• commitment to the results and recommendations of the review of PGR’s services in civil service reform.

PDP supported the expansion and quality of advocacy, design and assistance programs through the preparation of technical reference and applied research material. Toolkits and supporting technical material were provided to the Partnership team to engage regional/provincial level governments in advocacy programs that are geared to getting these governments signed up to the public sector management reform program.

PDP provided both strategic HR advice to the MST and senior TAMF consultants on HR reform and assisted with HR activity implementation. An important part of the assistance was the provision of on-going advice and feedback to the MST regarding progress of existing HRM related activities and opportunities for future support. The scope of work fell broadly under the following four areas: 

• realising synergies in the provision of HR support across the TAMF sub-facilities, including the transfer of best practice and learning from one agency to another, as well as ensuring good coordination and cooperation was achieved with other relevant projects 
• providing a supervisory/quality assurance role for all HRM initiatives, including the provision of HR advice to and mentoring of agency staff and TAMF consultants, and supervising HR initiatives across the sub-facilities 
• design of new HR initiatives and assisting in activity implementation 
• assisting with the preparation of transition plans as TAMF moves into a transition phase, including analysing the need for and providing support in strengthening HR capacity in partner agency staff.

PDP continued to assist the World Bank Indonesia Office to extend and deepen regional civil service and public finance reform. The PDP team undertook a participatory diagnostic of the present organisation and civil service management in Cluster One region (Lombok), working in conjunction three selected administrations: provincial, district and city administrations. A review of the performance of civil service management, decentralisation and related reforms in Indonesia was undertaken in order to prepare a diagnostics report including an assessment of the functions, organisation, staffing and financial situation. The team supported the preparation of a roadmap for reforming the organisation and the civil service in the selected regional cluster.

PDP continued to assist the World Bank Indonesia Office to extend and deepen regional civil service and public finance reform. The PDP team undertook a participatory diagnostic of the current organisation and civil service management in Cluster Two region (West Sumatra), working in conjunction with the selected administrations: provincial, district and city administrations. A review of the performance of civil service management, decentralisation and related reforms in Indonesia was undertaken in order to prepare a diagnostics report including an assessment of the functions, organisation, staffing and financial situation. The team supported the preparation of a roadmap for reforming the organisation and the civil service in the selected regional cluster.

PDP provided assistance to the Partnership for Governance Reform (PGR) to strengthen the Province of the Special Region of Yogyakarta and selected kabupaten in reform strategy development, and diagnostic of civil and administration reform and public expenditure management to effect the transformation to a more results focussed public sector. The purpose was to provide a comprehensive whole-of-government reform model for regional governments with a pilot in the Special Province of Yogyakarta.

The current functions and linkages of the Government of the Province of Special Region of Yogyakarta were diagnosed to identify gaps and to propose steps to enable them to become an effective and efficient civil service organisation. Additional assistance was provided to two kabupaten in developing reform strategies and their implementation models in defining intergovernmental arrangements and financing arrangements. The assistance model was to be replicated elsewhere within Indonesia in assisting sub-national governments in designing and implementing reforms.

PDP assisted the Partnership for Governance Reform (PGR) with the regional government whole-of-government reform process, focusing on solving issues identified in Phase I, previously undertaken by PDP. The purpose was to convey the agendas of the pilot areas to the central level and initiate a dialogue on the roles and responsibilities of the different institutional levels. Specifically, the consultancy identified and outlined how particular institutions link together, and how particular institutional and legal barriers for reform are addressed and outlined action plans in key areas of reform.

Detailed transformation programs were prepared, focusing on:

• transforming governance, corruption prevention and anti-corruption institutions at provincial and district government level
• rationalisation and streamlining of central and local government organisations
• restructuring job formation
• improving the procurement system, remuneration system and performance appraisal system
• assessing priorities for reform of budgeting processes and mechanisms to strengthen financial management.

A key component was to assist regional governments with corruption prevention by internalising anti-corruption measures within budget driven public sector reforms. Support for new entities within regional administrations in the form of design of the entities and the preparation of processes and systems designed to address anti-corruption was provided.

PDP specialists worked on the first major civil service review in Indonesia with the aim of identifying the requirements for transformation of governance in the country, including a major focus on incentives to reduce corruption. The objectives were to identify the institutional framework, processes and systems in place and make concrete proposals for improving the performance and accountability of public officials through institutional reform.

PDP prepared a quantitative rewards assessment model (RAM) in order to analyse the structure of civil service benefits and assessed formal non-monetised benefits and informal payments received as part of the Patronage and Group Management System of corrupt behaviour. Recommendations for anti-corruption models and related institutional processes were made and models showing alternatives with varying degrees of monetisation and their implications for the budget were costed and presented. The budget structure was analysed with assessment of formal and informal salary top-ups from the development budget.

PDP provided technical assistance to strengthen Indonesia’s anti-money laundering (AML) regime and combat money laundering effectively in order to strengthen the financial system and its governance. In particular, the PDP team:

• supported proper implementation of AML laws and regulations
• strengthened non-bank supervision and audit procedures
• built capacity to prosecute and adjudicate money-laundering cases
• increased understanding of AML compliance among non-bank financial institutions (NBFIs)
• supported sustainable in-country AML computer-based training (CBT).

PDP assisted in the implementation of a Governance Reform Support Project, focusing on central and regional decentralisation. The project developed the capacity to progress major program initiatives from the early conceptual stages through program design and pilot implementation through to full program implementation.

PDP prepared a strategic paper - the Naskah Akademis - which entrenched the new budget concepts and anticipated the effects of the new arrangements in the public sector. Enabling regulations were drafted from the consensus/decisions reached via the Naskah Akademis, integrating the views of the various stakeholders. After approval of the implementing regulations, these were translated into detailed processes spelled out in a ministerial decree, providing a workable budget preparation model for provincial and local governments for use in the preparation of the 2005 Budget.

PDP helped the drafting of regulations mandated by Law 1/2004 on budget implementation and advised the Ministry of Finance on the content of the implementing regulations. The preparation of an effective regulation on this subject was critical to implementing the new budget rules supported by the three Basic Financial Management Laws (State Finance, State Treasury, and State Audit), which provide the legal foundations of a vast, ongoing reform of public finance management in Indonesia.

The assignment supported the preparation of the regulation by a specialist drafting team. The document identified linkages to other legal products (such as the regulations on the preparation of the budget – PP20/21 2004, Government Service Agencies, cash management and budget reporting) that either need to be taken into account, be overridden by the new regulations, or helped to enable the implementation of others. This mapping out exercise was critical to ensure that the most important linkages were accounted for.

Key outputs of this activity were a comprehensive, annotated list of the elements to be included into both regulations and the identification of key issues that needed to be resolved. The document enabled the head of the drafting team to manage the drafting process and establish effective legal products.

PDP assisted the Government of Mongolia to implement a performance-based budgetary and public administration system strategy. The project pilot-tested output-based budgeting, medium term planning, accrual accounting, financial reporting practices and performance-oriented administrative reforms of five pilot central government agencies in two pilot provinces. The PDP team supported the Ministry of Finance and Economic Planning, the pilot agencies and pilot provinces in:

• preparing accrual accounting for selected entities in the two pilot aimags
• preparing a study on the relationships of governance reforms and decentralisation
• preparing functional reviews of the decentralised structure of the six pilot agencies (with bottom up feedback from the two provinces)
• implementing the management change proposed in the functional reviews.

PDP also made recommendations for broadening the decentralisation reforms to other ministries.

PDP has been contracted to undertake ADB’s most recent project in Indonesia, Local Government Finance and Governance Reform. PDP’s eight-person team will provide support to the Government of Indonesia over a period of one and half years, in (i) building institutional capacity in development and implementation of a medium-term reform agenda in RG financing and governance; and (ii) facilitating the achievement of targets and commitments in Subprogram 2 of the LGFGR 2 policy matrix.

PDP provided the services of a Fiscal Reform Expert to oversee the implementation of a major embedding of intergovernmental reform. Responsibilities included:

• refining and strengthening the policy matrix: strengthening the specificity and quality of reform measures outlined in the draft policy matrix and providing support in finalising the program
• harmonising the regulatory framework: mapping out a sequence of ideal regulations that fit with the overall spirit of the program and drafting specific recommendations
• coordination at the central level: providing advisory support to the newly established Directorate General for Financial Management in the Ministry of Home Affairs (MOHA)
• pursuing the earlier outline of the Academic Paper on the proposed National Action Plan for Decentralisation and drafting an initial version of the Academic Paper.

PDP assisted the core component of the Local Government Finance and Governance Reform Sector Development Program (LGFGR-SDP), which focused on enhancing transparency, accountability, efficiency and effectiveness in the delivery of basic services at local level. Objectives of the program included:

• strengthening the of legal and regulatory framework guiding regional autonomy and fiscal relations
• improving the equity and efficiency of inter-governmental relations
• strengthening local public expenditure and financial management through planning, budgeting and debt management reforms, and through enhancing national and local government institutional capacity.

The PEM Expert was responsible for ongoing legal and regulatory reform initiatives, in terms of the adequacy as well as desirability of the proposed reform measures, and for proposing a full sequence of legal and regulatory reforms to be implemented through the program. PEM reform measures that could be supported through LGFGR-SDP in selected provinces and districts, and in relation to intergovernmental fiscal transfers, for proposing a reform agenda to strengthen the block transfer system and the earmarked transfer system were designed. Further, advisory support to the newly established Directorate General for Financial Management in the Ministry of Home Affairs (MOHA) was provided.

PDP was contracted to help strengthen the Regional Regulation (PERDA) review and assessment process through the development of an information management system covering the review process relating to the promulgation of local government taxes and charges. This called for an assessment of the current PERDA review processes, using a process mapping approach to track the “as-is” processes used by MOHA to assess consistency of regulations. Recommendations included the introduction of a re-engineered best practice process to become the basis for an automated information system to facilitate the PERDA review process. The transformation and streamlining of the review and processing of PERDA aimed to bring major benefits towards significantly improving the revenue situation at the regional level.

The program focused on the PERDAs pertaining to local taxes and charges. The information system developed was scalable to accommodate the review of PERDAs other than those on local taxes and charges, as well as to support the Monitoring and Evaluation (MONEV) system under the Directorate of Facilitation, Policy, and Reporting of Regional Autonomy. The team also assessed the level of regional compliance with the requirement to submit new regional regulations to the centre.

PDP provided a team of experts to review the adequacy of procedures relating to the identification, location, securing and holding of evidence at all stages of a case from investigation to brief preparation and production in court during a prosecution. The team explored the needs of the Special Crimes investigators of the Kejaksaan Agung – commonly known as the Attorney-General’s Office – the combined Attorney-General and Public Prosecutor in the Indonesian legal system together with those of investigators of the Indonesian Anti-Corruption Commission – Komisi Pemberantasaan Korupsi (KPK). Both sets of investigators were studied simultaneously in order to enhance consistency in law enforcement and seek opportunities for cooperation and mutual understanding across agencies.

Recommendations were provided for enhancing and developing the legal and or procedural framework for both the Kejaksaan and KPK, including:

• study tours to Australia and/or other regional investigations bodies
• technical assistance for immediate and longer term enhancement of evidence handling law and procedure
• assistance with the development of practices and procedures
• analysis of other needs such as infrastructure and equipment, if needed, to properly institute sound evidence handling procedures.

The project contributed to the ability of anti-corruption investigators to manage the collection, storage and transfer of evidence in a legally sound and professional way. It was particularly aimed at preparing anti-corruption investigators and prosecutors working in the more complex areas of financial crime involving document handling and electronic information.

A process mapping approach was used to track the “as-is” processes used by MOHA to assess consistency of regulations. The consultant team documented the current PERDA review process, including the respective responsibilities of the units and/or departments involved in the process and technologies used by the central government, particularly on taxes and levies, and identified areas that might be modified for automation.

The introduction of a re-engineered best practice PERDA review process was subsequently recommended, to be fully automated over time. The team drew up specifications for a proposed IT/IS system to support the re-engineered PERDA review process and presented an action program for transformation of the process. The information system developed was scalable to accommodate review of PERDAs other than those on local taxes and levies as well as supporting the Monitoring and Evaluation (MONEV) system under the Directorate of Facilitation, Policy and Reporting of Regional Autonomy. The system was to be administered by MOHA, however it was accessible to other ministries such as the MOF and regional governments. It also offered limited public access and a complaint mechanism to ensure transparency and good governance.

The consultant team adopted a learning-by-doing approach by working together with the counterpart team members and conducting formal and informal knowledge sharing sessions, specifically on the relevant information technology/system options. In addition, the consultants developed a Diagnostic Tool to assist in examining review and storage processes for regional regulations on matters other than taxes and charges.

PDP provided assistance to the Commission for Eradication of Corruption in Indonesia, Komisi Pemberantasan Korupsi (KPK), in anti-corruption legislation, building the anti-corruption institution, anti-corruption related training and business processes and operating procedures development.

A review of enabling legislation to which KPK operations are subject, together with legislation governing other law enforcement agencies, was undertaken to identify inconsistencies and conflicts that prevented KPK from effectively fulfilling its mandate. Assistance was provided in developing business processes, drafting KPK regulations, implementing procedures and guiding KPK’s cooperation with other law enforcement agencies and developing procedures for human resources management. An assessment of KPK staff member training needs was conducted and relevant training programs for the managers and executives of KPK’s four divisions designed and implemented.

PDP worked together in close cooperation with the Partnership for Governance Reform (PGR) in Indonesia and KPK counterparts, with responsibility for:

• Designing and developing Standard and Operating Procedures (SOP) to support the main operation of KPK to handle complaints and to carry out detection, investigations and prosecutions of acts of corruption effectively
• Recommending and, after ADB, KPK and Partnership approval, procuring and installing information and communication technology (ICT) to provide supporting facilities that enable KPK to become fully operational
• Assessing KPK staff member training needs and designing and implementing relevant training programs,
• Helping to develop cooperative arrangements with those government agencies involved in enforcing the eradication of corruption laws and those other institutions relevant to ensuring the unhindered exercise of KPK’s detection, investigation and prosecution powers, and
• Reviewing legislation to which KPK’s operations are subject, together with legislation governing other law enforcement agencies, to identify inconsistencies, weaknesses and conflicts that hinder the KPK’s capacity to fully utilise its detection, investigation and prosecution powers.

PDP undertook a study to assess the budget and composition expenditure performance (and related tracking) and management practices within selected health institutions in West Java. The study tracked development budget flows (from the district budget and de-concentrated central budget) and mapped and assessed managerial practices and staff behaviour influencing resource flows at each institutional level. It also included an assessment of the relevance, and proposed and actual utilisation/spending of particular deliveries (drugs), while addressing the recycling of inappropriately allocated resources into required expenditure needs and leakages, as well as the flows between public and private services when this was relevant.

Information was gathered to provide: an estimate of the actual availability of funds for recurrent expenditures; an estimate of the resource needs for selected institutions to deliver the level and quantity of services needed at a reasonable cost and quality; and an analysis of how and to what extent institution staff had mobilised additional resources. A review and analysis was also carried out of key rules and regulations regarding the health budget, and demonstration provided of the links between different institutional levels to illustrate the major obstacles to and opportunities for reform.

PDP provided technical assistance in support of public financial management reforms, enhanced intergovernmental coordination on decentralisation reforms, development of minimum service standards (MSS), liaison work and capacity building for the Ministry of Home Affairs (MOHA), provincial and local governments in public expenditure and financial management reforms and the new regional representative council with respect to decentralisation reforms and related IT assistance.

PDP provided leadership and technical assistance in fiscal and administrative decentralisation reforms. Key tasks included:

• drafting of the National Action Plan for Decentralisation (NAPD)
• drafting of background technical papers on functional assignments, focusing on the definition and allocation of responsibilities between different levels of government
• preparation of an analytical paper on the provincial and sub-provincial fiscal capacities and needs
• monitoring key legal and regulatory development and changes in near or medium term operational priorities of the concerned ministries
• related PEM capacity building, including the development of PEM modules (covering planning, budgeting expenditure and financial management aspects) and the design and implementation of a high level seminar on fiscal decentralisation.

PDP completed Phase I of the public sector program in the Planning Institute of Jamaica (PIOJ) and the Works Division - Ministry of Transport and Works (WD-MTW), focusing on design of reform strategies, institutional renovation, mandate transformation and performance-oriented management of the two agencies. The PDP team provided organisational analysis, developed a modernisation strategy and prepared modernisation and transformation plans. The modernisation plan identified the best possible strategic positioning for the PIOJ and WD-MTW, consistent with the aims and objectives of the Government of Jamaica (GOJ) and the Public Sector Modernisation Program (PSMP), to introduce greater efficiency and cost savings and the PIOJ’s need for global positioning to influence the path and scope of national growth. As an adjunct to the Modernisation Plan, PDP prepared a Medium Term Financing Plan (MTFP) and framework document setting out the revenue and cost implications of the PSMP in the PIOJ over a three year period and assisted stakeholders to understand what the PSMP would mean for the future of the PIOJ.

The team undertook major restructuring of the PIOJ aimed at integration of strategic PEM processes between the PIOJ and Ministry of Finance in the area of strategic priority setting and resource allocation within a medium term expenditure framework. For WD-MTW, PDP’s work focused on its conversion into an Executive Agency through re-engineering/improvement of its strategic business, organisational and information systems.

PDP undertook an independent assessment of the relevance, efficiency, effectiveness, impact and sustainability of SMIS II. This included evaluation of:

• the flexibility of the project and if it effectively incorporated changes in the local environment and Ministry of Finance and Economic Development structure/needs
• the appropriateness of the Project’s implementation mechanisms and modalities
• the effectiveness of linkages with other technical assistance and the impact of donor coordination on the effectiveness of the Project
• significant long-term shifts in the organisation that can be attributed to SMIS II
• the value and appropriateness of monitoring and evaluation mechanisms
• the sustainability of SMIS II initiatives and any other project specific lessons learnt.

PDP also gave consideration to the future direction of Australian assistance to the public sector, providing advice on how SMIS reforms could be sustained and how to progress recommendations on financial management in Kiribati.

PDP provided long term assistance to the Ministry of Finance and Economic Planning (MFEP) to build capacity and to design, test and transform PEM processes and systems. A major component was to assess inter-sectoral resource allocation and the effectiveness of expenditure including the composition of sectoral expenditure. Sector expenditure priorities were redefined, including financing consistent with MTEF and sector policy. Extensive PEM process reforms were implemented covering linkages between planning and budgeting, medium term forward estimates system, output based budgeting and performance monitoring as part of budget process reform. A key element was internalisation of the PIP into the capital budget component of sectoral spending and the use of performance indicators in budget/actual reconciliation and feedback to framing the MTEF and rolling forward estimates. Comprehensive training of MFEP staff was an integral component of the project.

The purpose of this mission was to provide advice to the Governments of Kiribati, Australia and NZ on a strategic approach to implementation of a joint program of Australian and New Zealand assistance, targeted at improving public sector performance. The PDP team reviewed the current focus of Australian and NZ assistance to Kiribati for public sector reform (as well as that of other donors) and made recommendations regarding the strategic focus areas Australian and NZ support should target. The team also examined the mechanisms used to provide Australian and NZ assistance and provided recommendations on future delivery mechanisms. Further, the team was responsible for recommending effective risk management and monitoring and evaluation strategies.

PDP was engaged to improve financial and economic management capability within the MFEP and provide staff with the ability to allocate and monitor the use of resources more effectively and efficiently. The main focus was on transformation of the FMIS, including strengthening IT systems, procurement and installation of hardware and software and systems development. Comprehensive budget and financial management reforms encompassed:

• the introduction of output budgeting/accrual accounting, including development of guidelines and procedures for preparation of budget estimates
• re-engineering of accounting processes and information flows relating to funds management and cash control
• facilitating the transfer from manual to computerised accounting processes and the establishment of improved reporting and analysis techniques
• effective ex-post and ex-ante monitoring and assessment methodologies for social sector expenditure.

PDP provided a comprehensive program of workshops, seminars and case studies to economic managers on all aspects of financial and economic management and reform, with an emphasis on the role of IFIs in external assistance programming and policy analysis. The program covered public expenditure management issues including external assistance relations and management, public investment planning and public expenditure programming, and focussed on social versus economic infrastructure allocations and budget reform.

PDP was tasked with the preparation of an accounting manual to be applied by the financial services of all Kosovo Consolidated Budget (KCB) spending entities. Our team undertook analysis of accounting processes for all types of expenditures, revenues, cash management and grants as well as identifying gaps in the KFMIS user guides and procedures. The team also provided training for building capacities of Treasury Department staff and key staff in line ministries on all aspects of the developed accounting manual.

The overall objective of the assignment was to enhance the reliability of the financial reporting of the Provisional Institutions of Self-Government’s (PISG), with a particular focus on institutionalising and harmonising accounting practices across the PISG and UNMIK administration in accordance with Cash Basis International Public Sector Accounting Standards.

The project encompassed Phase I of a comprehensive whole of government reform program aimed at major structural and process transformation of public management in Kuwait. In particular, the project assisted the Ministry of Finance to strengthen the contribution of budget preparation to the achievement of the government’s medium-term economic priorities and fiscal targets, and to the achievement of more efficient and effective expenditure programs.

The PDP team designed and led the functional review process covering budgeting and accounting operations at the Ministry of Finance, including preparation of methodology and diagnostic tools, training of working groups, and implementation of the functional and budget/expenditure analysis. A review of “as-is” processes (of the budgeting and accounting operations of the MoF) was undertaken, considering MoF's interaction with the Ministry of Planning, Civil Service Commission, Ministry of Health, Ministry of Public Works, Ministry of Foreign Affairs and Kuwait University to facilitate an understanding of the various types of organisations and the difference in processes. Subsequently, “to-be” processes were designed, incorporating best practices, and a gap analysis between the “as-is” and “to-be” models was presented. Based on the agreed “to-be” processes, inputs were provided to the requirements definition for the budgeting and accounting functions for the proposed integrated public sector IT system. Detailed design of the roll-out and the implementation strategy was presented, together with related action plans, emphasising appropriate change management strategies including provision of staff training.

PDP was responsible for the detailed design and implementation of a Planning and Performance Budgeting Systems (PPBS) framework, and provision of associated staff training and familiarisation exercises. The team were tasked with:

• specification of standardised formats for PPBS budgets including ministry vision, mission statements and objectives, program structure, program objectives and performance measures
• high-level design of “to-be” PPBS workflows and a PPBS framework for the MOF and line ministries
• development of a budget planning process focusing on programs
• definition of PPBS reporting requirements including the development of templates for quarterly and annual reporting of performance indicators
• provision of recommendations for legislative and administrative changes to support PPBS including necessary changes in the legislative and regulatory framework to support the introduction of PPBS
• assessment of training and human resource development needs in the MOF and line ministries for successful rollout of the PPBS
• preparation of a capacity and training needs assessment
• preparation of a detailed and realistic implementation schedule following consultations with line agencies.

PDP strengthened the capacity for financial management and planning of the public investment program (PIP) within the Ministry of Finance (MoF) by:

• assisting the organisational adjustment within MoF with clearly defined PIP responsibilities among various departments
• establishing an effective reporting and monitoring system
• improving short and medium term financial forecasting related to the PIP and its budgetary implications.

PDP conducted a functional analysis of the Public Investment Program (PIP) Unit and other departments within MoF related to PIP and submitted recommendations for further streamlining organisational structure, strengthening the PIP Unit and improving information flows. Tasks included analysis and reform recommendations to improve disbursement procedures for PIP so information on the flows of external resources for financing projects would be fully integrated into budget execution through the Treasury reporting system. A system was established that employed internationally acceptable methods to estimate and forecast both investment and recurrent costs of ongoing projects, and maintenance costs of finished or to-be-finished projects. PDP was also accountable for the review and improvement of methodologies being used for evaluating externally and domestically financed projects. Capacity building and systematic training was provided to staff at the MoF and other major line ministries.

PDP undertaking this TA, the goal of which is to contribute to improved public financial accountability and transparency in support of the Government’s development and poverty reduction policy objectives. Consulting services are being provided across two main components: the first to improve the quality of reporting and internal control through the development of accounting and internal audit systems; and the second to improve effective state audit oversight of public finances and expenditures through upgrading capacity in the State Audit Office.

Key areas of assistance include: 

• implementation of the Government Financial Information System (GFIS) to the districts and preparation of the first set of consolidated financial statements 
• assessment of changes required to the Public Financial Management System (PFMS), implementation of these on a pilot basis, and preparation of a strategy to carry out the PFMS implementation 
• diagnostic review of changes required to accounting regulations and procedures and preparation of an implementation plan for their revision 
• review and revision of the 5-year strategic plan, policy statements, organisational structure, draft internal audit regulation, internal audit mandate, code of ethics, and internal auditing standards, for consideration, approval and implementation by MOF
• assistance to the State Audit Office with revision of its 5-year strategic plan, changes in operational practices, upgrading capacity and revision of Audit Laws 
• design and implementation of a series of extensive training modules on GFIS and PFMS implementation, new accounting regulations, fundamentals of accounting, fundamentals of audit and control, and audit regulations.

This project sought to improve public expenditure management processes in contribution to the allocation efficiency of public resources according to the Government’s development and poverty reduction policy objectives. PDP provided long-term technical assistance to improve the quality of fiscal planning and enhance capacity within the relevant MOF departments and government agencies involved in the fiscal planning process. This involved an assessment of the present fiscal planning process and progress to date, with challenges and opportunities identified and addressed in the development of a coherent medium-term expenditure framework (MTEF). The team also provided training on fiscal planning, budgetary systems, international public financial/expenditure management standards, and computer models and database systems to the relevant MOF departments. Furthermore, PDP led the automation of fiscal planning and budgeting processes, with responsibility for developing and customising simple-to-use computer spreadsheets and database management models.

PDP provided technical assistance to the Committee for Planning and Cooperation (CPC), the entity responsible for all economic planning and management, with the aim of strengthening its economic and financial management capabilities. Assistance was provided to CPC staff in the design and implementation of a planning system incorporating macro and sectoral policy and investment programming and the introduction of associated planning tools, as well as production of annual and medium term (five year) strategies and a public investment program. Technical training was provided to government staff in economics and planning, and extensive macroeconomic and sectoral analysis completed as part of the preparation of the medium term strategy.

PDP provided advisory assistance in public expenditure management to assist the Government of Latvia in the design and implementation of new components of ongoing PEM reforms. Component I involved the preparation of processes and systems for improving the macroeconomic and fiscal policy framework, strategic priority setting and budget planning. Component II involved the preparation of PEM and institutional/functional reviews for line agencies, focussing on strategic priority setting and resource allocation within a consistent medium term framework, performance based budget planning and budget integration. In addition, work focused on assisting the Ministry of Finance in preparing the Guidelines for Macroeconomic Development and Fiscal Policy 2002 to 2006.

PDP prepared policy papers on the implications for policy making of a medium term fiscal framework and the process changes required at the centre of government and the adjustments required to complete the process of budgetary reform. An assessment of PEM reforms and the quality of macro and fiscal forecasts was completed. An action plan was prepared for incorporating a MTEF, use of forward estimates and performance based budgeting and use of budget monitoring indicators to establish spending priorities. Assistance was provided in the preparation of a fiscal policy statement. A key task was developing a methodology for public expenditure reviews and ensuring broad participation and ownership in the Ministry of Justice, Agriculture and Finance through working groups and key counterparts. PDP consultants ensured the readiness of working groups to sustain the work through training, information sharing and sensitisation to public expenditure management issues.

PDP provided technical assistance to the Maldives Public Service Division (PSD) with the overall aim of strengthening governance and improving the efficiency and quality of service delivery in the public sector. Specifically, PDP was tasked with preparing a plan to establish a Government Public Service Training Center (PSTC) and helping to increase the knowledge and improve the skills of PSD staff members, as well as of staff members of selected ministries, in modern human resource management and organisation development concepts and processes. Furthermore, the team prepared a strategic reform plan for building a performance-orientated public service.

PDP provided technical assistance to help strengthen and develop the institutional capacity for economic policy making by providing economic policy advice and public sector management at the state level. Core components included:

• improving the institutional capacity for economic management
• state-level capacity building
• macroeconomic policy advice
• public sector management
• compact advisory support
• development of the post-compact structural adjustment program
• coordination and support for private sector development
• outreach and information systems.

Support was provided to the Chuuk State Department of Treasury with particular emphasis on updating accounts payable, and a diagnostic review was performed to determine current staff capacity. The consultant also facilitated the development and institutionalisation of the Public Sector Investment Program as an accountable and transparent process in the State Government.

PDP provided the services of a Human Resource Management Specialist to prepare an inception report for the proposed TA. The TA was focused on enhancing the audit and administrative processes of audit offices necessary to effectively carry out productive and efficient audits. Specifically, the specialist was responsible for preparing a work plan including scheduling for the proposed TA activities.

PDP was retained at the request of the Minister of Finance and Economics to prepare papers for the Mongolian Aid Group covering government development strategy, macroeconomic reform priorities, sector strategies and priority expenditure programs to the Year 2000. A medium term PIP and a financing plan were prepared and submitted to Cabinet for approval as the capital budget program. Priorities for the medium term and a new aid management policy were also identified for inclusion in the papers.

PDP has been contracted by the World Bank to support the Mongolian Civil Service Council in the development of proposals for a new civil service grade structure, to conduct a sample survey of pay in the civil service, to identify benchmark jobs; and to undertake a pay comparator study with selected private sector organizations.

PDP provided long-term assistance to the Government of Mongolia to streamline and strengthen institutional arrangements and capacity for civil service management, financing, coordination and accountability. The assistance focused on three core tasks:

• strengthening civil service management capacity and professionalism by implementing the civil service reform strategy and conducting agency level efficiency reviews
• rationalising the civil service wage bill, incentives and employment by formulating a wage, compensation and severance policy reform
• strengthening accountability for performance by devising accountability systems and income-asset declarations and reviewing/preparing regulations and operational manuals.

PDP provided technical assistance to:

• assess how the ADB could best assist in building the institutional, administrative and financial management capabilities of local government in the context of decentralisation and other donors’ activities
• identify priorities and approaches for further ADB assistance.

A review was conducted of the structure, functions and staffing levels of the Governors’ Offices at two sample aimags, together with a preliminary needs analysis for improving institutional, administrative and financial management capabilities. Review and assessment was undertaken of the existing:

• budget processes and level and structure of the resulting budgets of the local governments
• screening and selection mechanism for investments at the local government level
• laws, regulations, policies and strategies in decentralisation and local self governance and the relationships between the local and central governments.

A review was conducted of the project profiles proposed by the Government of Mongolia for donor assistance for the Decentralisation Support Sub-Program of the Management Development Program, to refine the scope of Bank assistance. Inputs were provided to the preparation of a Memorandum of Understanding, including defining the objectives, scope and costing, implementation arrangements, timing and terms of reference. A report was also prepared outlining the organisation, structure and function of local governments in Mongolia and their relationships with central government.

PDP provided assistance to the Government in the development and implementation of methodologies on asset valuation. PDP’s consultant focused on several critical areas to improve the existing asset valuation framework for the Government, including: 

• reviewing the current asset valuation framework and providing recommendations on formulation of national law and regulations in compliance with the International Standard and experience 
• providing assistance in implementation of national regulations and methodologies on asset valuation 
• providing trainings and workshops to improve capacity and practical experience of the asset valuators.

PDP provided the services of an International Tax Specialist to develop consistency in the application of national rules on Government taxes (customs, excise, VAT, income tax) on projects funded by International Financial Institution (IFI) grants and credits in Mongolia. Responsibilities included:

• detailed review of existing tax legislation and guidelines and international treaties concerned to the tax issue of the projects financed under external grants and credits
• analysis of the application of taxes to ongoing projects funded by different IFI and donor countries
• comparing relevant practices in other countries
• providing recommendations on the application and use of existing tax rules and international treaties, and recommendations on amendments to the relevant legislation and rules, if necessary
• conducting workshop/seminars to central government agencies.

PDP assisted the Government of Mongolia to prepare and implement the Poverty Reduction Support Credit (PRSC) program. Help was provided to the authorities to undertake the necessary analytical work, update implementation action plan of the mid-term civil service reform strategy recently approved by the Parliament, and prepare policy and institutional reform recommendations in the area of administrative and civil service reform.

PDP provided policy and strategy assistance to support reform of intergovernmental relations, encompassing financial, structural and organisational, and legal and regulatory adjustments. The assignment involved extensive policy dialogue and the preparation of a framework and action program for intergovernmental relations reform including resource allocation and service delivery arrangements in the social sector at national and provincial levels. PDP was also involved in the preparation of the Phase II program for Bank financing.

PDP facilitated the introduction of public administration and intergovernmental finance reforms focusing on intergovernmental financial relations, a shift to output budgeting, the user-provider model and accrual accounting systems for public sector management. Tasks included design and testing of financing mechanisms, establishing new budget and financial management systems and FMIS, defining the legal and regulatory framework, and establishing accrual accounting systems at centre and provincial level.

This project entailed a mid-term review (MTR) of the Mongolia-Australia Capacity Building and Small Activity Facility (CaBSAF) to assess its progress and management. The MTR team reviewed and commented on progress of the Facility activities and advancement towards the achievement of the stated objectives and outputs, and made recommendations for improvement. As a key member of the MTR team, PDP provided the services of a Public Sector Reform/Human Resource Development specialist. He imparted expert advice on public service reform and human resource development in Mongolia and internationally as appropriate. The consultant also had primary responsibility for assessing the scholarship program, particularly its integration into broader human resource development strategies and priorities.

PDP provided assistance to the Ministry of Finance and Economy, with a particular focus on the Economic Cooperation Management and Coordination Division, in the preparation of studies, analysis and documents for the 2002 Consultative Group Meeting. Work included a macroeconomic analysis covering the period June 2001 to June 2002 with a focus on sources and uses of foreign assistance and coordination of foreign assistance, pro-poor growth strategies and external financing requirements.

PDP provided the services of a PEM/Aid Management Specialist to assist the World Bank Resident Office prepare all Consultative Group Meeting papers, including a policy/strategy framework and aid utilisation requirements.

PDP staff undertook an assessment of the state of overall public financial management in Mongolia, contributing to the financial management section of the governance assessment of Mongolia. A program to support the implementation of measures to strengthen public sector financial management was formulated, focusing on institutional measures, interim legal and regulatory measures and capacity assessment. Specifically, the consultant evaluated Mongolia’s:

• revenue administration
• public expenditure management
• social sector program financing including social assistance overhang
• public sector accounting, internal control and auditing
• ongoing public sector financial reforms
• current state of fiscal relations and the capacity and resource implications of ongoing reform measures for centre-local fiscal relations.

PDP assisted the Government of Mongolia and the Ministry of Finance and Economic Planning (MFEP) to establish an outcomes-based public expenditure management (PEM) system to provide the necessary framework for planned public administration reforms. PDP helped the MFEP design and implement a reformed PEM system that improved institutional arrangements, accountability and transparency relating to aggregate fiscal discipline and the allocative and operational efficiency of budgets.

Responsibilities of the PDP team included:

• training domestic consultants and key MFEP officials in applying objective criteria for selecting and prioritising public investment projects
• training and assisting pilot agencies in preparing forward estimates
• developing and helping implement the top-down components of an MTEF, including a system for setting medium term strategic priorities and sectoral budgetary ceilings for ministries that build on the PIP process.

PDP provided advisory technical assistance to the National Development Board of Mongolia to design and implement a development planning model. Expertise was applied to analysing current planning processes and systems and assisting with the design of a planning system linking macro and sector policy and investment programming. Key achievements of the project were the adoption of PIP processes incorporating a medium term framework, integration of PIP into capital budget, adoption of a systematic cycle of priority setting of PIP processes and establishment of an effective monitoring system for PIP projects.

PDP assisted the Government of Mongolia to implement a performance-based budgetary and public administration system strategy. The project pilot-tested output-based budgeting, medium term planning, accrual accounting, financial reporting practices and performance-oriented administrative reforms of five pilot central government agencies in two pilot provinces. The PDP team supported the Ministry of Finance and Economic Planning, the pilot agencies and pilot provinces in: preparing accrual accounting for selected entities in the two pilot aimags; preparing a study on the relationships of governance reforms and decentralisation; preparing functional reviews of the decentralised structure of the six pilot agencies (with bottom up feedback from the two provinces); and implementing the management change proposed in the functional reviews. PDP also made recommendations for broadening the decentralisation reforms to other ministries.

PDP consultants provided assistance to the President, Cabinet, Minister of Finance and Parliamentarians on economic policy and fiscal issues facing Nauru with the objective of enhancing the Government of Nauru’s ability to implement economic policy, and to assist in implementing a realistic medium term economic budget strategy. The team reviewed current governance arrangements applicable to Nauru’s government enterprises and trusts, and advised and assisted with the implementation of changes, including the preparation of a legislative review. An assessment was made of the annual budget process, with recommendations and assistance provided on the implementation of improvements with a focus on forecasting revenues, identification of revenue enhancement, prioritisation of expenditures and transition to transparent and cost effective financing options. Assistance was also provided on budget preparation and submissions for 2001/2002, 2002/2003 and 2003/2004.

PDP was engaged to provide technical assistance across whole of government to enhance the Government of Nepal’s capability to lead, coordinate and support the implementation of its long term governance reform strategy. Capability was developed by assisting the government’s own staff to work towards key reform milestones, emphasising measures to improve efficiency, reduce corruption, strengthen personnel management and enhance performance management.

Key tasks included:

• the design and implementation of redundancy and voluntary early retirement schemes
• supporting the MoF in developing policy and related procedures to devolve non-core and executive functions of government
• supporting the Financial Controller General’s Office in developing proposals to strengthen establishment and payroll controls in order to enhance control of the public service wage bill
• supporting and guiding the Ministry of General Administration to develop policies and procedures for employee recruitment, promotions, transfers and discipline
• supporting the development of a long term civil service pay policy
• establishing a sound foundation for introducing a computerised personnel information system in order to support personnel decision making as well as enhancing payroll and establishment control
• reviewing the institutional framework and proposed legislation for combating corruption and assisting with building the capability of the Commission for the Investigation of the Abuse of Authority
• analysing the expected negative and positive impact of the governance reform program on poverty and gender.

PDP provided support to individuals and teams through effective mentoring, coaching and interactive training, and undertook direct change facilitation skills with local staff through a series of workshops and forums in the areas of anti-corruption, anti-money laundering, performance management, implementation of a personnel information systems and civil service reform.

PDP undertook a comprehensive analysis of the Papua New Guinea 2001 Budget with a particular focus on the budget’s ability to address the development components of the government. The analysis highlighted differences in priority between the PNG Government’s Development Strategy and the AusAID PNG Development Strategy. A detailed review was provided on the ability of the budget to address each priority sector, with particular focus on the budgets ability to meet the requirements of proposed expenditure. Analysis was also provided on which line items in the PNG 2001 Budget should be included in an assessment as to whether the benchmark targets outlined were likely to be met in 2001.

PDP was engaged to examine the financial cost to the Government of Papua New Guinea (GoPNG) of its National Education Plan (1995 to 2004). The project encompassed:

• developing a resource allocation assessment model and analysing education financing trends over 1997 to 2003
• developing sector and sub-sector projections of revenues, expenditures and financing 2004 to 2015
• financially modelling the period 2004 to 2015 under different policy scenarios.

The PDP team provided a realistic analysis of the financial implications of policy options for implementing the GoPNG’s National Education Plan and designed a comprehensive and practical model of the education system which could be readily used as a tool by education planners and financial managers at the national and provincial levels and for each education sub-sector.

PDP advised on major structural and process reforms including downsizing, budgetary and expenditure management reforms, the introduction of output contracting processes, and reform of central/provincial linkages for the Minister of Planning and Prime Minister.

A comprehensive program of functional reviews was completed for key machinery of government agencies including the Department of Finance and the Department of Personnel Management. Findings from the analysis were widely discussed with government reform teams and a restructuring and divestment plan for central government was completed. The restructuring program focussed on clustering of government departments and downward decentralisation of services to lower level governments, as well as consolidation of budgets over the medium term. An explicit focus was the requirements for effective performance-based management and improved accountability for improved services.

PDP assisted with restructuring the Department of Agriculture and Lands within the framework of the Government’s public sector reform program. The methodology for the diagnostics was designed collaboratively, with data collection completed prior to comprehensive assessment of structural and organisational reforms. Functional reviews were completed for all service areas and at an intergovernmental level including an assessment of the policy framework, institutional and organisational arrangements and constraints in terms of quality of service levels, rationalisation of non-core functions, and medium term capacity building priorities. A comprehensive revitalisation and reconstruction plan was prepared and workshopped prior to submission to Cabinet for approval. Divestment of non-core activities was proposed as well a financing and costing program within the framework of the national budget.

PDP provided the services of a public finance specialist to lead a design mission team in producing a project document to form the basis of UNDP’s future decentralisation intervention relating to financial improvement at the provincial level in PNG. The mission team identified key issues to be addressed by the project and developed an appropriate project implementation approach and strategy to allow strategic targeting, priority setting and sequencing.

PDP provided a Treasury Budget Adviser to work with the Secretary, Department of Treasury, the First Assistant Secretary (FAS) Economic Policy Unit (EPU) and other senior officers and advisers in EPU. The consultant acted as a mentor and supported the FAS in the planning for, and delivery of, the 2003 budget, with emphasis on improving the integrity of the budget in cash management, accuracy of data, improved cost estimates and a firmer basis for the forward estimates of expenditure and revenue. A detailed report summarised the reforms achieved and identified further practical reforms to be implemented in EPU and in related areas of the Department following the delivery of the budget. A detailed assessment of skill requirements and staff development in EPU and related divisions was also undertaken to enable the reforms to be successfully implemented.

PDP provided a team of consultants in support of the Public Expenditure Review and Rationalization (PERR) Project for improving statutory authorities’ governance. The team suggested legal amendments to relevant legislation and assisted the preparation of a policy submission to the National Executive Council (NEC). The NEC policy submission outlined proposed amendments to the Public Finances (Management) Act (PFMA) and statutory authority legislation, with the objective of improving the statutory authority governance framework.

The project focused on work with the Department of Treasury, particularly the Economic Policy Division and Deputy Secretary, on matters relating to the preparation of the 2004 PNG budget. PDP provided advice in relation to the budget preparation work undertaken to date and its impact and effectiveness, and recommended the focus of possible future assistance to the PNG Treasury.

Embedded within the Budget Management Bureaus, PDP’s team provided technical assistance in order to reform the budget preparation process and ensure consistency with the organisational performance indicators framework (OPIF).

PDP’s experts focused on enhancing the proposals assessment process, both in format and content, to enable the Development Budget Coordination Committee (DBCC), Cabinet and the President to make allocative choices between individual proposals as well as between the priority sectors, within the strategic setting of the budget call. In addition, consistent with the strategic thrust agreed with the government and other donors, a public expenditure and institutional review was undertaken to document advances in public expenditure management, particularly as they related to the 2007 budget preparation, highlighting areas for short and medium term improvements. Support was also provided to enable the Department of Budget Management (DBM) to deliver on the above objectives to document achievements and challenges, including to identify areas for additional capacity and administrative improvements.

PDP provided extensive assistance to maintain the reform momentum of the public expenditure management (PEM) reforms and help deepen the quality of key planning and PEM processes and systems were developed under previous reform agendas. Assistance was provided across four inter-related activities of planning and PEM reforms: 

• enhancement of capital works programming by NEDA
• consolidation and deepening quality of MTEF and budget policy framework
• advocacy and implementation of results-based budgeting (OPIF) 
• moving towards output-based budgeting in reforming organisational and staff management.

A combination of activities were pursued such as functional analysis; manpower skills assessment; implementation mentoring; capacity building by training and learning-by-doing; guidance in preparation of technical processes and systems; and advisory development of policy framework and fiscal management.

PDP provided technical assistance to the Department for Budget Management (DBM) and National Economic and Development Authority (NEDA) to improve harmonisation and coordination of their roles in the plan-budget management system. A detailed audit of DBM and NEDA operating systems and procedures was undertaken and recommendations provided for possible improvements or enhancements. Further, the team assisted in drafting a framework to address procedural issues, to develop operational manuals, to enhance operating systems and to strengthen institutional and staff capacity to effectively perform their functions. The PDP team also provide advisory assistance and institutional strengthening support in conjunction with the implementation of the DBM and NEDA Rationalisation Plans.

PDP examined the existing management systems and tools of the Department for Budget Management (DBM) and National Economic and Development Authority (NEDA), with the objective of taking the best of these systems and building them rationally linked systems that promote performance-based planning, programming and budget management. This included an assessment of all existing systems and documenting the strengths and weaknesses of all existing systems and tools, with the objective of identifying areas of inadequacies, duplication and inefficiencies. An assessment of the Organisational Performance Indicators Framework (OPIF) was carried out to identify immediate/short-term measures to improve its application in the 2007 budget preparation process. Recommended actions and an implementation plan were formulated by the team. Further, the team was tasked with the implementation of the recommended improvements to the performance-based planning and budget management systems.

PDP provided consulting services as part of the Land Equity International team undertaking the first step in the implementation of the proposed long term (15 to 20 years) Land Administration and Management Program (Program) of the Government of the Philippines. Specifically, PDP developed the framework for policy studies in:

• institutional arrangements
• land laws and regulations
• fees and finance
• land valuation.

Significant assistance was provided in the conduct of the studies, with responsibility for the compilation and production of the study reports. An integrated report was compiled, including an assessment of the impact that the agreed recommendations would have on each government and non-government stakeholder groups.

PDP is providing long-term technical assistance to support the Philippine Government’s fiscal consolidation and poverty reduction agendas by improving resource mobilisation, expenditure management and public service delivery in local government units (LGUs). The TA is supporting LGUs in developing sound and transparent fiscal frameworks that will serve as a foundation for strengthened budgeting and access to credit markets.

PDP is providing assistance across three key aspects of LGU fiscal management: 

• supporting a clearer and more effective legal framework for decentralisation
• increasing transparency and effectiveness in LGU expenditure management and budget processes
• strengthening resource mobilisation in LGUs.

PDP assisted the National Economic and Development Agency (NEDA) to improve the monitoring and evaluation of the medium term public investment program (MTPIP) and support the emerging MTEF initiative through the development of methodologies and mechanisms to carry out performance assessments. In particular, PDP helped strengthen NEDA’s capability in strategic planning, investment programming, budgeting and monitoring and evaluation.

An effective public expenditure management system was set up for better allocation and prioritisation of public resources, particularly on the MTPIP. Efficient and effective governance was promoted through re-engineering, streamlining and right-sizing of bureaucracy and rationalising public sector compensation. PDP carried out continuous development of the capacities, core competencies and skills of civil servants, LGUs and civil society organisations to handle new demands in a changed environment, and also expanded the use of information technology to enhance the productivity, efficiency and effectiveness of government operations.

PDP was engaged to build the capacity of the Department of Budget and Management (DBM) and other oversight and line agencies in performance measurement within a public expenditure management framework. A review concentrated on developments over the past two years and included analysis of pertinent documents on performance measurement produced in the GOP since July 1999, as well as research on actual field practice and the application of concepts currently being promoted by DBM. Capacity building was achieved through the provision of basic training for DBM and other oversight and line agency personnel, followed by more advanced training for some members of the DBM Core Group and personnel chosen from among the basic trainees. Trainees were at the level of Assistant Director or Division Chief so they could echo the training to other staff on return to their offices.

Support is being provided by PDP’s budget expert in embedding the forward estimates (FEs) process, which was introduced in the 2007 Budget, and in guiding key line ministries to develop their spending plans and proposals based on the FEs. This includes responsibility for:

• assessing the 2007 budget experience to identify strengths and weaknesses in the development and use of the FEs and in the appraisal of new program proposals
• assisting DBM in the update of FEs and formulation of FEs for the additional forward year (including preparation of guidelines, coaching and improving understanding of methodology)
• providing DBM with a better understanding of how the FEs can assist in formulating Budget policy and strategy
• assisting DBM to review and refine existing FEs in the context of the OPIF
• recommending early integration of the FEs into the Budget process and the use of a common database.

This project supported the Government of the Philippines’ efforts to strengthen the country’s anti-money laundering regime. It was intended to deter money laundering and predicate crimes through support for strengthening the institutional framework for AML.

PDP provided the services of a regulatory expert with responsibility for identifying key areas where changes to the AML legal and regulatory framework would be beneficial as well as politically feasible within the Philippine setting. The expert also provided support to the Anti-Money Laundering Council (AMLC) and other relevant stakeholders to develop legislation/regulation to address issues that hindered effective implementation of the AML regime.

This assignment formed part of the Bank’s program to finance consulting services, business and information services over four years through seven components: (i) management; (ii) human resources; (iii) tax compliance; (iv) tax enforcement and control; (v) services to taxpayers; (vi) change management and communication; and (vii) project management.

PDP provided specialist services with the aim of increasing revenues by improving the efficiency and effectiveness of the Bureau of Internal Revenue (BIR) and preparing the BIR for further reform. Specifically, PDP’s adviser was responsible for:

• reviewing the existing plans for each of the seven reform components
• supporting staff of the project administration unit to establish systems to plan, monitor and report on project components and financial and administrative coordination
• developing and recommending a project management structure for the implementation of the reform components
• in consultation with BIR managers, developing the detail of activities, risks and sequencing for the reforms
• facilitating a planning workshop at director and staff level to promote and deepen the engagement between reform planning and BIR managers.

PDP undertook a major analytical study of six Pacific island countries public expenditure management (PEM) performance, including detailed assessment of PEM processes, institutions and performance of public financial management. The study focussed on a phased program of improvements, including the Bank’s role in PEM. Outputs encompassed design of a PEM assessment tool, and comprehensive proposals for reform and their integration into wider public sector management reform programs such as the Solomon Islands Government Public Sector Reform Program (SIG PSRP). Contributions were made to the preparation of the SIG PSRP with a focus on reforms to planning and budgeting, accounting and financial management and implementation of the legal and regulatory framework.

This project aims to promote good governance through improved transparency, accountability, and efficiency in managing and using public resources in the Pacific. PDP is providing support in preparing and maintaining a rolling subregional audit program, liaising with the auditor-generals of Kiribati, Nauru and Tuvalu to implement the program, and preparing a detailed resource schedule outlining audit timing and sequencing.

PDP was contracted to prepare the Project Design Document (PDD) for Phase 2 of the Improving Policy Development and Coordination of Reform Program. This included responsibility for preparing the situational analysis, scope of services, Logframe, components, TORs, risk management framework, costings, M&E framework and contracting strategy for the program.

PDP undertook an initial institutional and situation analysis for Samoa’s Ministry of Revenue, to assess the requirements for proceeding with the design of an Institutional Strengthening Project (ISP) for the Inland Revenue Department (IRD).

PDP was involved in the diagnosis of institutional capacities and provided analysis for further scoping and design work for the ISP. Furthermore, PDP presented a range of institutional strengthening options for the Ministry, identifying critical areas in which to concentrate the ISP, as well as undertaking specific strengthening activities to assist the short-term priorities of the IRD.

The objectives of this project were to reorient corporate planning activity in departments towards budget-based planning and strengthen management systems, increasing the attention given by these systems to resource allocation and management. The PDP team took forward an integrated departmental corporate planning, approval, implementation and monitoring process, entailing a budget-based, standardised approach. Assistance was provided to support national counterparts in building the capacity of departments to manage and implement the integrated process.

PDP’s team focused on corporate planning and integration with a medium term budget framework, including formal Cabinet approval and annual reporting of performance against the plans, and the introduction of financial, organisational and other management arrangements to facilitate effective implementation of plans. Assistance was provided to the Secretary to Cabinet to develop a policy coordination role for the Cabinet Office and assisted in the preparation of a Cabinet Submission seeking approval for the introduction of an integrated planning, approval, implementation and monitoring system.

Key tasks included an assessment of which departments would benefit from external assistance in preparation of corporate (or departmental) plans and implementation of the associated financial and other management arrangements. A survey was undertaken of the state of preparedness and availability of external assistance in each department to comply with the proposed integrated planning, approval and monitoring system and recommendations made on the provision of assistance to departments in need. The Adviser also assisted in the development and refinement of the proposed integrated planning, approval and monitoring system, and liaised with the Departments of Finance and Treasury, and National Reform and Planning and the National Planning, Monitoring and Evaluation Unit to ensure that it accommodated their reporting requirements and was compatible with and complimentary to the budget development system and the emerging Medium Term Budget Framework.