[{"bbox": [140, 152, 1134, 286], "category": "Text", "text": "Despite positive strides, the weak management of tax arrears and the prevalence of excessive tax exemptions and subsidies continue to hinder the efficiency of DRM efforts. Regarding **revenues from the forest and agriculture sectors**, the LRA should strengthen tax compliance within forest and agriculture concessions and expand the tax base in the agricultural sector. Furthermore, exploring mechanisms for reinvesting revenues collected in the forest and agriculture sectors could further bolster their growth and sustainability."}, {"bbox": [140, 298, 1134, 538], "category": "Text", "text": "There have been efforts to tackle **budget transparency and oversight** issues in the recent years. One significant advancement has been the closure of many of the 509 accounts belonging to MACs at commercial banks. In addition, progress has been observed in budget planning through the utilization of the Integrated Financial Management and Information System (IFMIS) for the budget year 2023. The Government took steps to improve budget transparency by publishing its annual budget and audit reports on the MFDP website. Under the new government some commendable initiatives improved the timeliness of financial reporting. According to the General Audit Commission (GAC), 30% of MACs were failing to submit periodic financial reports on time (under previous government). This year the 2023 reporting and 1st quarter financial reporting reached 95%, due to disciplinary measures adopted by Comptroller General."}, {"bbox": [140, 548, 1134, 630], "category": "Text", "text": "Also on the positive side, the GAC has demonstrated improvements in both the quantity and timeliness of audit reports. Notably, it has published reports addressing critical areas such as domestic debts and the payroll. The latter issue is an object of ongoing reforms undertaken by the Public Service Agency."}, {"bbox": [140, 641, 1134, 696], "category": "Text", "text": "Another positive trend is the audit of the systems within the Legislature and Senate, which will pave opportunities for reforms and improvements."}, {"bbox": [140, 706, 1134, 788], "category": "Text", "text": "GAC also created a follow-up unit tasked with overseeing the implementation of audit recommendations. While the GAC issues recommendations, their implementation often lacks follow-up by the Parliament, limiting the efficacy of the audit process."}, {"bbox": [140, 798, 1134, 877], "category": "Text", "text": "Challenges related to oversight persist, however, as the Public Procurement and Concession Commission, responsible for overseeing Government's contracts, lacks capacity and resources to effectively carry out its mandate."}, {"bbox": [140, 890, 1134, 1051], "category": "Text", "text": "The Public Account Committee (PAC) faces significant challenges in keeping pace with the growing volume of audits performed by the GAC, despite the audit reports being issued in a timely manner. This capacity shortfall similarly impacts the effectiveness of the Legislative Budget Office (LBO). Without adequate systems and resources in place, both bodies struggle to conduct thorough follow-up and oversight of audit findings, undermining their ability to hold MACs accountable. The World Bank is planning to provide support to the PAC through an upcoming Domestic Revenue Mobilisation project."}, {"bbox": [140, 1062, 1134, 1223], "category": "Text", "text": "The Internal Audit Agency (IAA) with the support of the WB Public Financial Management Reforms for Institutional Strengthening Project (PFMRISP), to which EU contributes, expanded the automated audit system and introduced a National Scorecard for evaluating Government agencies, marking positive developments in enhancing accountability and transparency. Nonetheless, the IAA continues to grapple with resource constraints and a shortage of properly trained staff. Notably, out of 110 MACs, only 80 have an internal auditor in place."}, {"bbox": [140, 1233, 1134, 1367], "category": "Text", "text": "Finally, the management of **public investment** is hindered by the absence of a proper public investment framework, resulting in inadequate prioritization of critical projects and a proliferation of unfinished initiatives. The MFDP aims to enhance project selection procedures, aligning them with the priorities outlined in ARREST. A new Public Investment Policy is currently being drafted and is expected to be approved in July 2024."}, {"bbox": [140, 1378, 1134, 1457], "category": "Text", "text": "Thus, supporting institutions successfully pioneering transparency and accountability and addressing remaining challenges will be essential for the management of public finances, thereby building trust and confidence in Government institutions."}, {"bbox": [140, 1483, 1134, 1538], "category": "Section-header", "text": "**Pillar 2: Improve transparency, accountability, and effectiveness in the forest and agriculture sectors and promote a sustainable development approach**"}, {"bbox": [140, 1549, 1134, 1630], "category": "Text", "text": "The status of PFM systems in Liberia, coupled with the limitations of accountability mechanisms, directly translates into insufficient public investments, and the failure to meet budgetary and revenue targets, especially in the agriculture and forest sectors."}, {"bbox": [1037, 1679, 1143, 1704], "category": "Page-footer", "text": "Page 7 of 33"}]