March 2017

Monitoring of Public Administration Reform Results in the Area of Public Finance in 2014

Activities to achieve reform objectives set for the area of public finance are defined by the Revised Action Plan 1 (RAP 1), and include eight chapters: policy dimension of the public finance system; increasing efficiency and effectiveness of budget management; improving the accounting framework and the treasury system operations; introduction of PIFC in compliance with relevant EU standards; improvement of organizational structure and investing in capacity building; development of public-private partnership; public procurement system and improvement of public debt management efficiency. This report on public finance reform monitoring does not contain chapters related to policy dimension of public finance system, public-private partnership development and public procurement system, for institutions in charge of activities on realization of those objectives were not the subject of monitoring.

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KEY FINDINGS

Successful realization of “Budget Planning and Management Information System — BPMIS” at all four levels of government in BiH contributes to increased efficiency and effectiveness of budget management and creates technical prerequisites for implementation of program budgeting in public administration in BiH.

Improved functioning of treasury system is reflected in implementation of treasury system in public administration at all levels of government. The treasury was implemented at the level of BiH, RS, FBiH and cantons. In RS, all beneficiaries of Republic budget and municipal budgets are covered by the treasury system since January 1, 2013. But in FBiH, all units of local self-management do not have treasury information system. Central Harmonization Units at levels of BiH, RS and FBiH have been established. PIFC Development Strategy was adopted in Brčko District. Internal auditors had extensive trainings within the project “Strengthening of Public Financial Management” that was funded from IPA 2010. Primary and secondary legislation from the area of internal auditing exist at all levels, but since it was mainly adopted in 2008, it is necessary to make certain changes of laws at all levels of government during 2015.

Significant improvement was realized in improving organizational structure and investing in capacity-building in ministries of finance at all levels of government. Trainings of employees of ministries of finance are performed continuously through workshops, seminars and presentations. Regulations on Staffing Plan in the Ministry of Finance have been adopted and filling of vacancies has been in progress.

RECOMMENDATIONS

It is necessary to enable further steps in program budgeting implementation, strengthening of existing program formats and better connection to strategic goals.

The goal of treasury system implementation in the whole public administration of BiH is to be realized. Implementation of International Accounting Standards for public sector should be realized at all government levels. Applying for donors’ support is recommended for implementation of those objectives.

The set objective of introducing internal control and audit in accordance with relevant EU standards was not realized within the time frame defined by the Strategy. All levels of government need to continue to work on a comprehensive development of PIFC because, along with ensuring legality and compliance in the expenditure of funds, it is also necessary to achieve prudence, efficiency and effectiveness in the management of public budgetary resources.

It is necessary to systematically and continuously make plans for capacity-building in the ministries of finance, including the number of training sessions and number of participants. During 2015 it is necessary to get the required staf in accordance with the adopted staffing plans.

Progress in enhancing public debt management efficiency has not been achieved as planned. It is necessary to achieve agreement among all levels of BiH government on the adoption of a single public debt management methodology and to ensure better coordination.

Monitoring of Public Administration Reform Results in the Area of Public Finance in 2014

 

   MONITORING

PUBLIC ADMINISTRATION REFORM MONITORING IN BiH PUBLIC FINANCE 2016
Transparency International in BiH, with financial support from the Swedish International Development Agency and the Government of Denmark and as part of the project Public Administration Reform Monitoring in BiH (PARM), prepares annual reports on public administration reform. This monitoring report looks at the results achieved by public administration in the field of Public Finance (PF) in 2016.
ANALYSIS OF RESULTS IN THE AREAS OF TRANSPARENCY, ACCOUNTABILITY AND INTEGRITY 2015-2016
Transparency International in BiH, with financial support from the Swedish International Development Agency and the Government of Denmark and as part of the project Public Administration Reform Monitoring in BiH (PARM), prepares annual reports on public administration reform. This monitoring report looks at the results achieved by public administration in the areas of transparency, accountability and integrity in the 2015-2016 period.
ANALYSIS OF RESULTS IN THE AREA OF HUMAN RESOURCES MANAGEMENT (HRM) 2016
Transparency International in BiH, with financial support from the Swedish International Development Agency and the Government of Denmark and as part of the project Public Administration Reform Monitoring in BiH (PARM), prepares annual reports on public administration reform. This monitoring report looks at the results achieved by public administration in the field of Human Resource Management (HRM) in 2016.
MONITORING THE RESULTS OF PUBLIC ADMINISTRATION REFORM IN PUBLIC FINANCES FOR 2014
Activities in achieving reform targets in the area of public finances are defined in the Revised Action Plan 1 (RAP 1), and encompass eight chapters; dimension of politics of the public finance system;
MONITORING THE RESULTS OF PUBLIC ADMINISTRATION REFORM IN PUBLIC FINANCES FOR 2015
The indicators of some targets and activities set out in the Revised Action Plan 1 (RAP1) are checked as "realized" in the reports by the Public Administration Reform Coordinator’s Office in BiH (PARCO).
MONITORING THE RESULTS OF PUBLIC ADMINISTRATION REFORM IN TRANSPARENCY, ACCOUNTABILITY AND INTEGRITY
Along with the established differences among the institutions from different levels of governance, the key findings of the monitoring witness about very modest results of public administration in terms of implementation of the standards in the areas of transparency, integrity and accountability.
MONITORING THE RESULTS OF PUBLIC ADMINISTRATION REFORM IN TRANSPARENCY, ACCOUNTABILITY AND INTEGRITY FOR 2014-2015
The results of monitoring show unsatisfactory state in the area of transparency. Namely, more than two-thirds of the institutions do not publish the basic information about their work and authority such as plans, end-year reports.
ANALISYS OF RESULTS IN THE AREA OF HUMAN RESOURCES MANAGEMENT FOR 2013-2014
The main issue in the reform of human resources management (HRM) is weak political support, inefficient system of coordination, politization of civil servants as well as the lack of general managerial skills by the current generation of managers.
MONITORING THE RESULTS OF PUBLIC ADMINISTRATION REFORM IN THE AREA OF HUMAN RESOURCES MANAGEMENT FOR 2015
The collected data show that there was some intense activity in the area of human resources management during 2015, although the final results are somewhat limited and the reforms have not lived up to expectations.

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