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Component 2

Public Financial Management Systems and Control

The objective of this component is to support the design, development, implementation and coverage of the Government’s PFM systems and control.

Sub-component 2.1: Strengthening Government Information Systems 

The objective of this sub-component is to complete the work started in the previous project on the design, development, implementation and coverage of the GIFMIS (IFMIS, HRMIS, Payroll and systems interfaces) to enable them to function as tools for improved fiscal management and budgetary control, cash and debt management, timely and accurate reporting for better economic management and effective service delivery.

ACTIVITIES

The main activities financed can be divided into three groups:

    • Enhancements in the coverage of the Financial Systems Modules of the GIFMIS.
    • HRMIS roll-out: The focus will be on completing the establishment registers for the remaining Government workforce, completing the rollout of the HRMIS core application, including establishment, profile and cost management, to enhance its coverage to all MDAs, services commissions and all ten Regions.
    • Technology Infrastructure: This will include hardware and implementation services for setting-up the disaster recovery systems; refurbishment of primary data center; improving and extending network connectivity through National Information Technology Agency (NITA); other hardware/software enhancements; maintenance fee for the software licenses; technical support.

Sub-component 2.2: Cash and Treasury Management

The objective of this sub-component is to strengthen the management of cash and debt to minimize net interest cost, ensure cash is available to meet commitments and obligations for service delivery and eliminate CF arrears accumulation.

ACTIVITIES

    • Developing a cash flow forecasting model, better forecasts of MDA requirements, and a cash management database;
    • Strengthening capacity of the Cash Management Working Group (CMWG) to improve control of budget execution by issuing expenditure warrants only on the basis of cash availability;
    • Broadening the coverage of the Treasury Single Account (TSA); and
    • Implement electronic bank reconciliation.

Sub-component 2.3: Strengthening Internal Audit Capacity

The objective of this sub-component is to strengthen the internal audit function at the IAA and across MDAs & MMDAs.

ACTIVITIES

    • Providing additional operational resources and tools (e.g. computers: hardware) to roll out the training and capacity building programs for improving the ICT skill of staff of IAA and Internal Audit Units (IAUs) particularly in the MDAs;
    • Designing, developing and roll out of quality assurance programs;
    • Strengthening the role of ARICs in follow-up actions on internal audit reports as part of the oversight function;
    • Training IAU management to support Government’s efforts at implementing Enterprise Risk Management (ERM) across MMDAs; and (v) provide consultancy and operational support in the conduct of specialized audits in collaboration with GAS to assist IAUs in undertaking procurement audits, payroll audits, system based audit and risk based audits, etc.

Sub-component 2.4: Public Procurement Planning, Management and Capacity

The objective of this sub-component is to improve procurement planning and enhancement of economy, efficiency, transparency and accountability of the procurement process.

ACTIVITIES

    • Enhancing the existing Online Procurement Planning (PP) Tool and linking it to the Hyperion Budget Planning;
    • Integrating/interfacing the e-procurement system, when completed under the e-Transform project, with the GIFMIS;
    • Supporting the implementation of the Amendments to the Public Procurement Act, 2003;
    • Carrying out Procurement Value Chain Analysis through consultancy services;
    • Establishing Unit Cost of Infrastructure consultancy services;
    • Establishing Functional Procurement Units in Procuring Entities through training and consultancy services;
    • Outreaching the local private sector to build capacity of contractors, suppliers and consultants to be able to submit responsive tenders through dissemination workshops;
    • Enhancing legal and regulatory capacity of PPA through  purchase  of  goods,  training  and  consultancies;  and  
    • Preparing a framework for carrying out Procurement Audits through consultancies and training.

Sub-component 2.5: Strengthening Payroll and Pensions Management  

The objective of this component is to enhance the integrity of payroll and its compliance with the approved establishments.

ACTIVITIES

    • The focus will be to support the Government in complementing the implementation of the Payroll Cleaning Plan, approved by the Cabinet, and already being implemented by the CAGD, under supervision of the Ministerial Committee of the Cabinet. Key activities include consultancies for payroll and personnel verification audits.

Sub-component 2.6: Improving Financial Reporting and Asset Management

The objective of this sub-component is to improve Government financial reporting in terms of completeness, consistency, and compliance with international standards.

ACTIVITIES

Under  the  implementation  authority of  the  CAGD,  and  with  collaboration  from  the Institute  of  Chartered  Accountants  of  Ghana  (ICAG),  the  sub-component  will  finance:

    • Capacity building activities relating to financial reporting and implementation of International Public Sector Accounting Standards (IPSAS); and
    • The establishment of policy guidelines for management, control, and reporting of public assets as well implementation thereof across government.