PROJECT (DETAILS)

Country Laos
Project Title Technical Assistance to the Ministry of Finance under the Public Expenditure Management Programme (PEMSP) - Strengthening of Internal Controls
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Description

Key Topics:

Public Finance Management (PFM), Public Expenditure Management, Internal Financial Control, Auditing & Accounting, Legislative Framework

 

Project Description and Objectives:

The Public Expenditure Management Programme (PEMSP) supports the macro-economic stability component of the National Growth and Poverty Reduction Strategy of the Government of Lao PDR. The objective of the PEMSP is to improve policy consistency, efficiency, transparency, and accountability in public expenditure management through the strengthening of institutional systems and capacity, and support the approximation of international financial management standards.

 

The PEMSP focuses on strengthening the management systems and capacity of the Ministry of Finance and Provincial Finance Departments, supported by pilot interventions at the provincial and sector levels. The program has five components:

 

A. Fiscal Planning and Budget Preparation

B. Budget Execution, Accounting and Financial Reporting

C. Local Government Financial Management

D. Financial Legislation and Regulatory Framework

E. Capacity Building

 

The objective of the Technical Assistance is to improve the public finance management system through the up-grading of the internal control system, supporting the accountability, transparency, and reliability of reporting under the PFM system.

 

Services Provided:

  • Review of completed institutional assessments, studies, and evaluations of the Internal Control System of the MoF;
  • Design of questionnaires and conducting interviews with MoF, the State Audit Office, and the Committee for Planning and Investment;
  • Review of the functions of the internal control system with respect to the legislative framework, organisation, human resources, capacity, role of key stakeholders, and the relationship between internal and external audits;
  • Development of a strategic plan for the establishment of a functional and efficient internal audit system;
  • Conducting four workshops and consultative meetings on internal audit functions and international practices in internal auditing;
  • Development of activities to implement the strategic plan, including phasing and costing of activities, organisational set-up, staff training needs, staffing requirements, equipment, systems, and software;
  • Provision of training to improve capacity of all internal auditors across the government to perform quality internal audits;
  • Preparation and presentation of the strategic plan, Aide Memoire, and final report.