The Provincial Capacity Building & Enhancement Programme (PCaB E) is an interim part of the new upcoming Phase III that provides continuous support to the Government of PNG Financial Management Improvement Programme (FMIP) by developing capacity around Public Financial Management at the sub-national level and assisting with the implementation of the Integrated Financial Management System (IFMS).

The PCaB is a joint effort through the Government of Papua New Guinea (GoPNG), UNDP and AusAID. It focuses on capacity building in sub-national treasury functions. It builds on the developments of previous PCaB Phase II and from other sub-national capacity building efforts.

The PCaB programme implements its activities in six pilot provinces, namely: Western, Central, Milne Bay, Morobe, Eastern Highlands and East New Britain.

In addition to these provinces, four new provinces have been added in the Enhancement programme phase. They include Autonomous Region of Bougainville, Gulf, Sandaun (West Sepik) and Western Highlands.

Objectives

Provincial Capacity Building & Enhancement Programme (PCaB E) focus on provincial and district financial management issues in the context of financial reporting to improve service delivery and effectiveness of public service programmes. The proposed goal of PCaB E is to continue strengthening sub-national financial management capacities in a sustainable manner.

To meet this overall goal, the five primary objectives of PCaB E are:

1. Enhance accountability and transparency within the PNG public finances;
2. Improving financial management capacity at sub-national levels;
3. Minimize risk of corruption
4. Establish the Public Expenditure & Financial Accountability (PEFA) Management framework;
5. Support efforts for the roll-out of the IFMS in the provinces.

The project implementation is guided by the PCaB Steering Committee, chaired by the Secretary of Finance.  Other members consist of an UNDP representative, an AusAID representative, a representative of the Department of Provincial and Local Government Affairs.

Accomplishments

PCaB is a specific financial capacity building programme that operates within a broader collection of sub-national capacity support programmes.

PCaB is a catalyzer agent that inter-links several programmes at the provincial and district levels. PCaB has on site provincial and district level advisers. They provide on-the-job training, mentoring and coaching in a daily operational basis to the provincial and district treasury officers.

The primary role of PCaB advisers is to improve the capacity of Department of Finance staff in the submission of financial reports. Timely and accurate submission of financial reports have positive consequences as it results in immediate release of public funds which allows for further service provision in the provinces, districts and LLGs.

The advisers provide a follow up of all financial management training efforts developed not only by the project, but also from other interventions under the Financial Training Brach (FTB) and the Provincial and Local-level Government Programme (PLGP).

The PCaB programme has been instrumental building the capacity of provincial treasuries reducing the delays in the preparation and submission of mandatory financial reports from about 14 months to one month in average, which falls under the PFM international standards. See attached graph. 

The PCaB programme after successful results in the six pilot provinces is expanding gradually to other provinces, using the same methodology and replicating the experience. The site-based advisors have built a framework for future implementation of financial management programmes in other provinces and districts, not covered currently by the programme.

PCaB programme falls under the Governance pillar of UNDP in Papua New Guinea strengthening the financial management capacity of government institutions to improve service delivery at sub-national levels, and contribute also indirectly to the poverty reduction and enhancing partnership of stakeholders as part of the MDG programme in PNG.

For more information, visit the web page of the PCaB Programme: www.pcabii.org.