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© OECD
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PUBLIC FINANCE MANAGEMENT AND AUDIT IN JORDAN
From an ex ante control to ex post
The Belgian example
Philip Mariscal
Amman, Jordan
4-5 November 2014
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Outline of the presentation
• Historical mission
• Copernic reform
• The current control
• Future and conclusions
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Outline of the presentation
• Historical mission
• Copernic reform
• The current control
• Future and conclusions
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1830
• Law of 1830: text
"S. 3. this Court is responsible for examination and the liquidation
of the accounts of the General administration and all Accountants to Treasury. It ensures that no item of expenditure of the budget is exceeded and that any transfer takes place. It stops the accounts of the various administrations of the State and is responsible for collecting all information and all necessary accounting documents therefor. The Court has the right to provide all States, information and clarifications relating to the recipe of the funds of the State." [...] “
Art. 5. the general account of the State is subject to the legislature with the observations of the Court. »
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Summary
• Accounting of the state
• Budgetary control
• Accounting control
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1846
• The law «§ 1.» The Court of Auditors is responsible for the control of the
budgetary accounting and general accounting of different
services of the State.
It stops Auditors General of the various services of the State and is
responsible for review and the liquidation of the accounts of all the
Accountants of the State.
It examines the legality and regularity of expenditure and revenues of
the State. »
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summary
Like in 1830.
unchanged missions
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legality and regularity
Prior approval of expenditure
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1998
The law of 10 March 1998 has entrusted to the Court of Auditors a jurisdiction to proceed a posteriori control of the proper use of public money and to review the management of the authorities under his control in the framework of the criteria of economy, efficiency and effectiveness. This extension of the powers of the Court of accounts aims so that the Court can inform Parliament as to how are managed public services and measures to be taken by the Executive to improve the management.
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The Constitution, section 180, has changed little…
• This Court is responsible for examination and the liquidation of the accounts of the General administration and all Accountants to the public Treasury. It ensures that no item of expenditure of the budget is exceeded and that any transfer takes place. The Court also exercises general control over the operations relating to the establishment and the recovery of the rights acquired by the State, including tax revenues. It stops the accounts of the various administrations of the State and is responsible to collect for this purpose any information and any necessary accounting document. The general account of the State is subject to the House of representatives with the observations of the Court of Auditors.
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Outline of the presentation
• Historical mission
• Copernic reform
• The current control
• Future and conclusions
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The copernic reform
with regard to human resources
• empower heads of service and departments
• improve public service
• modernize management
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How
• top-managers hired for 6 years
• management contracts
• a specific management of managers
and...
• accounting reform
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accounting reform
• The accounting reform of 2003 continues these developments in completing the laws of 1963 and 1991, which had laid the foundations for the General accounts of the State. For obvious reasons of consolidation and respect for the obligations in the dissemination of financial information, the same general rules in budgetary and accounting matters must apply to the federal State and the entities federees.
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A new accounting
• The laws of 2003 introduce the obligation for the State to keep a General Ledger according to the principles of the double, as the accounts of the private sector, in addition to budgetary accounting.
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IS
• Finally, advances in information technology are a determining factor in the success of such a reform; They offer new opportunities for the realization of a double accounting system, standardized for all services of power federal
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FEDCOM
• FEDCOM is the name of the project to meet the legal obligations of modernisation of the Federal accounting system introduced by the law of 22 May 2003 on the organisation of the budget and accounts of the federal State. FEDCOM also means the new accounting computer app set up under this modernisation
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Outline of the presentation
• Historical mission
• Copernic reform
• The current control
• Future and conclusions
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The current control
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• Internal control
• Internal audit
• External audit
Then: abolition of the prior approval of expenditure
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Internal control
• Internal control is the first "link" of the single audit model. The term control is to be understood in the sense of mastery.
• Internal control systems are developed based on the COSO-INTOSAI model. They revolve around five components: control environment, risk assessment, control activities, information and communication, the control or monitoring
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Internal audit
• The appearance of a larger internal control is the real novelty of the accounting reform and control exercised by the Executive branch.
• As a first step, the law of 22 May 2003 reforming the State accounting introduces the audit of the Belgian public sector
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External audit
• Financial audits establish the book observations of the Court which contains the annual accounts and the observations of the Court. These audits therefore give rise to budgetary and accounting analyses involving the controls of legality and sound management of the operations and are in charge of the approval of the accounts of public accountants
• Thematic audits produce specific reports dealing with a Department or a particular administrative process. These audits include the control of legality and sound management of public funds according to the criteria of economy, efficiency and effectiveness. Thematic audit is also competent in tax matters and control of human resources.
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abolition of the prior approval of expenditure
• Why?
• How?
• Benefits?
• Disadvantages?
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Outline of the presentation
• Historical mission
• Copernic reform
• The current control
• Future and conclusions
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• our successes
• our failures
• Our solutions
Professional auditor
increased cooperation
establishment of new tools
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Questions?
