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REPUBLIC OF REPUBLIC OF MOMOZZAMBIQUEAMBIQUE

MozambiqMozambiqueue

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Republic of Republic of MozambiqueMozambique

Population - 19 milion Civil Servants – 160 Thousand Public Internal Auditors - 450

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PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SISTAFESISTAFE

LAW 9/2002 – 12 FebruaryLAW 9/2002 – 12 FebruaryEstablished 5 Public Financial Established 5 Public Financial Management SubsystemsManagement SubsystemsLAW 23/04 - 20 AugustLAW 23/04 - 20 August Approved the Public Financial Approved the Public Financial Management RuleManagement RuleUTRAFEUTRAFE –Coordenator Institution of the –Coordenator Institution of the PFM ReformsPFM Reforms

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PUBLIC FINANCIAL MANAGEMENT SISTAFEPUBLIC FINANCIAL MANAGEMENT SISTAFE

Treasury Subsystem

Budget Subsystem

State PatrimonySubsystem

Public Accountability Subsystem

Internal Audit Subsystem

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INTERNAL AUDITINTERNAL AUDIT

Domains :

• Budgetary

• Economic

• Financial

• Patrimony

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Internal Audit Subsystem - CompositionInternal Audit Subsystem - Composition

General Inspection of Finance and General Inspection of State Administration

Sectorial General Inspections

Central, Regional and Provincial Audit Institutions

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ActingActing

• Operational level

• Sectorial level

• Stratégic level

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CoordenationCoordenationCoordenated Acting between institutions of control regard planning, realization and evaluation of the activities.

Rational and coherent working

Suficiency – eliminate uncovered areas e resulted controls

Complementarity – respect the level and the atribuited area of each institution and accordance of borders, criteria and methodologies.

Importance – take in account risk evaluation and materiality of the situations.

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FrameFrame

GOV.(MPF)

IAS

COORDENATOR COUNCIL

Strategic LevelIAEIGF

Financial control of Public revenue and expensesSectorial Level

General Inspections of all Ministries and Regional Inspections

Control the activities of the 1st level institutions

Operational LevelInternal AuditingInternal Controls

Procedures

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General ObligationsGeneral ObligationsThe Institutions Shall:

Give all requested information to the Coordenator Council

Respect the recomendations

Support the Coordenator Council

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Special ObligationsSpecial Obligations

Strategic and sectorial controls shall:

Prepare activity plans and reports according to the CC recomendations

Send to the C.C. Annual Activity Reports and plans

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Administrative CourtAdministrative Court

Attend the CC sessions, preparation of the plan and annual reports as observer

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Achievements since the creation of the Achievements since the creation of the SubsystemSubsystem

Elaboration of the “ White Book” for the IASubsystem (Diagnosis)

Elaboration of IAS`s Strategic Plan for 2005-2009

CC bylaws

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Achievements since the creation of the Achievements since the creation of the SubsystemSubsystem

Perfomance Audit in Pharmaceutical Sector, Streets and Water- Justice Sector is ongoing

Integrated Audit

Conjoined Audits:

• Procurement Process

• Financial and administrative evaluation of 39 districts

• Auditing 50% of the districts (2008)

• Internal Auditors Training

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ConstraintsConstraints Lack of Public Auditor Bylaw

Changes Resistance

Insufficient quality and number of HR’s

Fragility of the Internal Audit Institutions, debilitate the principle of complementarity

Insufficient financial Resources

Technician Mobilility

Incompatible wages

Different development stages

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ChallengesChallenges

High Interaction with external audit

Risk Management

Increasing the covered budget

Transversal Actions and their impact

Quality training for internal auditors

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InitiativesInitiatives

Auditing Basic Manual

To Facilitate Sharing of Knowledgement

Partnership within other countries

Annual Conference of Internal Audit

Certification of Internal Audit profession

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Budget SubsystemBudget Subsystem

Programmed and elaborated by the Module of Budgetary Programme

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Public Accountability SubsystemPublic Accountability Subsystem This System has been computerized and integrated with the

other systems

There is a Budgetary Execution Module in all Minitries, provinces and 38 of 146 districts of the country.

The system gives:

Quaterly reports about the execution of the budget

Government Financial Statements

The 2007 Government Financial Statements has been elaborated based on the system information.

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Public Accountability SubsystemPublic Accountability Subsystem Unique account managed by the treasury

Payments are directly, although some are still made by advanced funds.

Law 54/2005 – regulate the procurement process in the country was approved

Acquisition unitiy management (UGEA´s) were established under the law 54/2005.

UGEA´s members are ongoing training.

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Thank you for you

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