[{"bbox": [98, 154, 756, 180], "category": "Section-header", "text": "### (a) National level: Public Sector Audit and Parliamentary oversight"}, {"bbox": [98, 192, 1135, 270], "category": "Text", "text": "One of the key PFM areas identified in the PEFA as substantially sub-standard and not addressed by any other development partner is the quality of external scrutiny and audit. The PEFA identifies the following areas of concern (score 'D'):"}, {"bbox": [98, 271, 954, 297], "category": "Text", "text": "(a) A significant backlog exists within the AGO in completing audit reports for public entities"}, {"bbox": [98, 299, 1135, 349], "category": "Text", "text": "(b) Reports submitted by the AGO to the Parliament's Public Accounts Committee are rarely scrutinized nor debated in Parliament."}, {"bbox": [98, 351, 908, 377], "category": "Text", "text": "(c) Entities to be audited frequently show little responsiveness to audit recommendations"}, {"bbox": [98, 379, 1135, 429], "category": "Text", "text": "(d) Lack of assurance on fiscal position of the public sector, the strategic allocation of resources to policy priorities and the efficient delivery of services"}, {"bbox": [98, 431, 648, 457], "category": "Text", "text": "(e) Lack of (timely) auditable reports on subnational entities"}, {"bbox": [98, 484, 1135, 536], "category": "Text", "text": "Based on this analysis, the following measures for the improvement of public sector audit have been identified in the PFM improvement roadmap 2021:"}, {"bbox": [98, 549, 1135, 655], "category": "Text", "text": "(a) Strengthen the Auditor General's Office (AGO) to ensure annual completion of audits consistent with internationally recognized standards (i.e. within one year of the end of the financial year audited, and public release by the auditor general within 30 days of notification of the audited entity) (priority 3 of the PFM improvement Roadmap)."}, {"bbox": [98, 660, 1135, 768], "category": "Text", "text": "(b) Improve capacity of the Parliamentary Public Accounts Committee to ensure proper and relevant discussions with members of the parliament on audit reports as well as to promote that the findings of those audits become relevant to set budget targets on the costs of implementing already approved policies and projects, as well as objective estimates of proposals for new policies and projects. (priority 9 of the PFM improvement Roadmap)."}, {"bbox": [98, 773, 721, 800], "category": "Text", "text": "(c) Improve Financial Reporting by National and Provincial Entities"}, {"bbox": [98, 806, 1135, 913], "category": "Text", "text": "Some National and subnational entities do not provide financial statements regularly to the AGO, and their liabilities are not consolidated into either the National Government's Annual Financial Reports. Without knowing the liabilities of such entities, a complete picture of the financial status of the National government or sub-national government cannot be provided (priority 6 of the PFM improvement Roadmap)."}, {"bbox": [98, 918, 1135, 998], "category": "Text", "text": "(d) Timely and Improved Information Provided to Members of Parliament: Members of Parliament are elected to represent their Districts and Provinces and watch over the transparent use of public resources (priority 9 of the PFM improvement Roadmap)."}, {"bbox": [98, 1024, 564, 1050], "category": "Section-header", "text": "### (b) Pilot subnational level: PFM in Bougainville"}, {"bbox": [98, 1061, 1135, 1380], "category": "Text", "text": "Bougainville's Department of Finance and Treasury has been slowly increasing its competences and capacities to undertake Public Finance Management Reforms. In conjunction with the Provincial and District Financial Offices (still under the PNG Department of Finance) Bougainville has initiated a series of reforms with the support of Australia (Public Finance Management Manual for the implementation of Bougainville's Public Finance Management Act and plans to implement a single budget). Nevertheless, Bougainville is still far behind the reforms undertaken at national level. For instance, a PNG PFM Manual was approved in 2016. While most of PNG provinces and National Government have transitioned to IFMS, Bougainville still operates under the outdated PGAS system. Similarly, Bougainville still operates under the old procurement regulation, has not started a payroll audit for its public employees and has not implemented measures to increase collection of both tax and non-tax revenue. The findings of the Bougainville subnational PEFA will allow to sequence the necessary reforms in the short, medium and long term through a reform roadmap. Opportunities for gender responsive budgeting and auditing pilot initiatives will be explored."}, {"bbox": [98, 1406, 875, 1433], "category": "Section-header", "text": "## Pillar 2: Integrity, transparency and accountability (ITA) systems and practices"}, {"bbox": [98, 1445, 1135, 1605], "category": "Text", "text": "Despite positive steps taken by the Government in the recent years, PNG's overall ITA system continues to suffer from substantial shortcomings, systemic dysfunctionalities, women's unequal access to participation, lack of capacity, and vested interests. Some of these are addressed at national level through the ongoing EU-PNG Partnership for Good Governance. However, efforts at subnational level, where substantial public resources are managed, are lagging behind. In accordance with the MIP, this action will strengthen (a) ITA of state and non-state actors at pilot subnational level (Bougainville) and (b) enhance the voice of CSO, including those representing"}, {"bbox": [1038, 1682, 1143, 1706], "category": "Page-footer", "text": "Page 6 of 22"}]