EUROPEAN PROFILES S.A

TITLE OF PROJECT

Assistance with Public Expenditure and Financial Accountability Review (PEFAR) 2007

Country:

Tanzania

Project Period:

07/2007-10/2007

Project Value:

€ 146.223

No of Staff Provided:

2

Origin of Funding:

EC EDF

Name of Client/ Beneficiary:

Government of Tanzania

Description of Project:

Public Expenditure and Financial Accountability Review (PEFAR) is an annual analysis that builds upon the longstanding Public Expenditure Review Process that is well established in Tanzania. PEFAR covers issues relating to public expenditure, financial management and procurement.

The PEFAR review is divided into two main areas: (i) Macro: A core analysis of budget formulation, budget execution and selected issues in public expenditure policy. An annual update of the core analysis includes an update of the Public Expenditure and Financial Accountability (PEFA) indicator set and (ii) Public Financial Management (PFM), which covers aspects of fiduciary controls as well as procurement.

Regarding the objectives of this project, there are two main objectives:

a) To participate in the overall PEFA assessment for updating the 28 indicators, and

b) To participate in the assessment of two Parastatals, namely Tanroads (Tanzania National Roads Agency) and DAWASCO (Dar es Salaam Water Supply and Sewerage Services).

Regarding Objective a, the project consists in helping prepare a comprehensive update of the PEFA indicator set as per the advice provided at the PEFA website (www.pefa.org) by demonstrating "best global practices" regarding use of the cardinal data set specified on the PEFA website. This exercise will help update the baseline for assessing the performance of Tanzania in the future.

Regarding Objective b, the assessment focuses on the financial management, procurement practices and operating performance of the two Parastatals, Tanroads and DAWASCO, and will makes use of the PEFA indicators. Since this is the first time these indicators will be used for this purpose, this assignment is also used to improve the methodology for applying an indicator set for assessing the performance of Parastatals.

Services Provided:

• Organisation of an information/training workshop gathering all the stakeholders of the two selected Parastatals and relevant staff of the Ministry of Finance, enabling the participants to understand the challenges and the modalities of the PEFA assessment.
• Analysis of Document of reference and initial data collection in close coordination with government services involved, in order to carry out the overall PEFA assessment.
• Organisation of meetings with the PFM Donor Group to review the scope of work, tasks assigned, and expected outputs of the mission in respect to the overall PEFA indicators. Meetings focused on assessing government banking arrangements (Bank of Tanzania), budget formulation (Ministry of Finance), financial management policies/Ministry of Finance), donors and predictability of external fund flows (Ministry of Finance).
• Comprehensive update of the PEFA indicator set, including helping to update the baseline for assessing the performance of Tanzania in the future
• Provision of preliminary findings, justification, and corresponding scoring for each indicator assessed, as well as an analysis/review for each of the indicators.

Name of Partners: