Public Expenditure and Financial Accountability (PEFA) in Papua New Guinea

20 May 2013

The Government of Papua New Guinea’s Department of Finance, has embarked on the implementation of Public Expenditure and Financial Accountability (PEFA) in conducting a self-assessment and diagnostics of the country’s Public Financial Management System (PFMS). To formalize the process the Department is initiating the establishment of the PEFA National Management Committee, the PEFA Technical Working Group and the PEFA Secretariat. The Secretariat is headed by the Accounting Frameworks and Standards Division of the Department. The Central Agencies of Government being the Department of Finance, Department of Treasury, Department of Prime Minister & NEC, Department of Personnel Management, Department of Provincial and Local Level Government, Department of National Planning and Monitoring including fiscal assessment agencies, the Internal Revenue Commission and the Auditor General’s Office will be the main drivers forming the Committees of PEFA By 2014, the implementation of the PEFA Framework Measurement and Assessment will be undertaken at the national level against the performance of the PFM system for previous financial years. Meanwhile, the PEFA Committees and Reporting Structures are being formalized and Professional development workshops are being planned for the next 6 months of 2013. Debriefings have been conducted by the Department of Finance with the Agencies above prior to the convening of the Committee meetings in-order to provide some background information on PEFA, as it is a fairly new concept in the country. PEFA assessment has been welcomed by the Central Agencies including the Auditor General’s Office and the Internal Revenue Commission. The PEFA Framework will provide a platform for prioritizing the PFM reform agenda and rollout. It’s Implementation is being supported by the Government of Papua New Guinea, UNDP and AusAID through the Department of Financial Management Improvement Program (FMIP) and the Provincial Capacity Building and Enhancement (PCaB E) programme.