Dire Dawa Administrative Council

Reform Awareness Workshop

November 2005

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Structure of Presentation

Awareness on the Reforms On going Reform activities in Dire

Dawa Identify specific areas of support

from Public Body Heads Question and Answers

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Background Expenditure Management and

Control Sub-Program is one of the five sub programs of the Civil Service Reform

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Objectives of EMCP To strength the capacity of the

public financial management system to manage public sector financial transactions

To improve the capacity of public sector managers to use information to permit better planning, management and control

To develop on the platform that budget allocations are driven by policy

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Components of EMCP Legal Framework Budget Reform Accounts Reform Expenditure Planning Internal Audit External Audit Cash Management Financial Management Information

System Human Resource Development

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Program Management National Steering

Committee EMCP Coordination Office Regional Steering

Committee Regional Reform team

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Reasons for Financial Reform

The system was designed for a unified rather than a fiscally devolved system

The accounts system provided only rudimentary control (cash only)

The way the budget was classified & structured did not facilitate the management & planning of public finances

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Reasons for Financial Reform …continued

6 years backlog in finalizing accounts Modernization of public sector financial

system Conditionality of Development Partners Requirements of new aid modalities No IT system leading to inefficiency

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Region Budget Reform

Accounts Reform Expenditure Planning

Federal                        

SNNPR                        

Tigray                        

Amhara                        

Oromia                        

Ben/Gumz                  

Harari                  

Afar            

Somali            

Gambella            

Adis Ababa                  

Dire Dawa                  

       

Status of the reform as of FY 1998

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Benefits of the Reform Legal framework established Accounts backlog reduced to one year Budget approved and notified on time Budget & Accounts manual/module

developed and translated (Amharic, Oromiffa, Somali & Tigrigna)

Financial Information System developed and used (BIS/BDA)

52500 staff trained Staff empowered

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Benefits of the Reform…cont’d

Standard Chart of Accounts used Budget structure standardized Cash and management control Comprehensive reporting Implement modern accounting

systems Development partners confidence

increasedDirect budget supportDebt write offRamping up financial support

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On Going EMCP projects at Dire Dawa

Budget Reform New Chart of Accounts New Budget Structure Forms Cost Center Budgeting BIS Budget Calendar

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On Going EMCP…cont’d Accounts Reform

Double Entry Booking Modified Cash Basis of

Accounting New chart of accounts Commitment accounting New forms, registers, ledgers and

reports Comprehensive reporting BDA

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Main Achievements Budget Reform  

Budget manual and module developed Development of new budget

classification Cost center budgeting New chart of accounts used for FY 98

budget preparation Printing & distribution of forms FY 98 budget approved and notified Budget processed using BIS 150 Budget experts trained

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Main Achievements…cont’d

Account Reform Accounts manual and module New chart of account used for FY 98 Recruitment of additional staff Printing & distribution of forms FY 98 accounts processed using new

accounts system 207 accountants trained

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Performance of Public Bodies

Rural dev. Cor. Bureau

Transport Agency TVT Collage D.D Health Center Sabiyan Health Center Kebele 06 Kebele 07

Health & Social Affairs

City Manager Office Police Commission Sport & Youth

Comm. DD secondary

School

Outstanding Medium

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Performance of Public Bodies …cont’d

Capacity Building BoFED Supreme Court Audit Office Abattor Service Sabian Secondary School Kebele 04 School Dile Chora Hospital Melka Jebdu Health

Centre

Kebele 4 Health Centre Biyo Awel Health Centre Kebele 01 Kebele 02 Kebele 03 Kebele 04 Kebele 05 Kebele 08 Kebele 09

Poor Performance

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Area of Support required Public Body Heads

Implement organizational structure Match Capacity to Job Conduct regular management meeting Follow up monthly reporting

Finance Heads Verify report Manage and control Cash and Bank

daily Ensure account records are up to date

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Area of Support required…cont’d

BOFED Management of reform Provide technical support Verify reports Consolidate Region accounts