DEPARTMENT OF THE TREASURY 

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE 

2009 REPORT TO CONGRESS 

Section 129 of the Foreign Assistance Act of 1961, as amended, authorizes the 

establishment of a Department of the Treasury program to provide technical assistance to 

governments and central banks of developing or transitional countries. This legislation 

also requires Treasury to prepare and submit this report on the conduct of the Treasury 

International Affairs Technical Assistance program by Treasury’s Office of Technical 

Assistance (OTA). 

 
TABLE OF CONTENTS 

EXECUTIVE SUMMARY 1 

2009 REPORT 3 

PROGRAM MANAGEMENT AND FUNDING 4 

Project Identification and Selection 6 

Effectiveness 7 

 Project Delivery Models 8 

 

2009 PROGRAM EVALUATION 12 

REGIONAL AND COUNTRY PROJECTS 13 

COUNTRY SPECIFIC HIGHLIGHTS 16 

ANNEX 1: STRATEGIC PLAN 2006-2010 26 

TABLE A - FISCAL YEAR 2009 BUDGET EXECUTION PLAN 28 

TABLE B - FISCAL YEAR 2009 Non-TIATA Sources of Funding 32 
1

2009 Report to Congress

Executive Summary 

Effective oversight of public monies – whether domestic revenues or development 

assistance – is essential for economic growth as well as for sustainability of aid 

investments. A recent OECD report on aid effectiveness put it succinctly: “Successful 

development depends in large part on the efficiency, integrity, and effectiveness with 

which the state raises, manages, and expends public resources. Therefore, improving the 

formal and informal rules and institutions that govern these activities, and strengthening 

the related human and technological capacities, should be a major component of any 

development approach.” 

The Treasury Department’s international technical assistance program, managed by the 

Office of Technical Assistance (OTA), supports the development of strong financial 

sectors and sound public financial management in developing and transition countries by 

providing specialized assistance in five areas: revenue, budget, debt, banking and 

economic crimes. 

This report details 2009 program developments and resource expenditures of OTA. In 

sum, during 2009, OTA conducted 119 projects in 57 countries throughout Latin 

America, Africa, Asia, the Middle East, Central and Eastern Europe, and the Former 

Soviet Union. The following accomplishments and program developments were 

particularly noteworthy. 

• Financial Crisis Response. In mid-2009, Congress passed supplemental funding 

for Treasury and other agencies to help poor countries cope with the rolling 

effects of the financial crisis. In order to respond to immediate needs, OTA 

reallocated some of its direct appropriation and deployed rapid response teams to 

affected countries such as El Salvador, Cambodia, Latvia and Kazakhstan. 

• Afghanistan. In 2009, Treasury increased the number of its advisors in 

Afghanistan as part of the broader USG civilian lift. Treasury assistance 

supported the completion of reforms under the Heavily Indebted Poor Countries 

initiative, which resulted in $230 million in debt relief over 20 years from the 

World Bank and the Asian Development Bank. Treasury is on course to have its 

largest contingent of advisors ever deployed to one country in Afghanistan in 

2010. This deployment will bolster efforts to create the Finance Ministry’s 

internal control unit and to help improve budget execution at the local level. 

• Haiti. In 2009, OTA partnered with Haitian institutions charged with combating 

economic and financial crimes. This resulted in the seizure from Haitian drug 

traffickers of over $20 million worth of assets. In 2010, OTA plans to increase 

significantly its assistance to Haiti as part of the USG and international 

reconstruction effort. 
2

• Iraq. In 2009, OTA adjusted the scope of its engagement to include assistance in 

debt management and local capital market development, revenues, and central 

bank IT development. Treasury continued to provide assistance to support more 

effective execution of the Iraqi budget. 

• Infrastructure finance advisors. The lack of adequate infrastructure is widely 

recognized as a roadblock to development. In 2009, OTA launched a new 

targeted effort to improve the capacity of governments to structure and implement 

Public-Private Partnerships and other means of financing infrastructure. 

• Debt issuance and management. OTA supported the efforts of a number of 

countries, such as Costa Rica, Guatemala and Indonesia, that were struggling to 

maintain spending for critical social programs and anti-poverty initiatives while 

meeting debt obligations. These countries therefore had to raise an unprecedented 

amount of money in their domestic bond markets. OTA helped these governments 

successfully secure the required funds by adjusting debt issuance strategies, and 

by offering investors a broader choice of instruments and maturities. 

• Fewer but Stronger Engagements. In 2009, Treasury pushed ahead with a multiyear effort to engage more selectively, focusing on those countries committed to 

using our assistance well, while strengthening our engagement in such countries 

across the financial sector – a systemic approach that takes advantage of 

complementarities among OTA teams. For example: 

o OTA launched four new projects in Cambodia working in the areas of 

budgeting, revenue management, banking supervision and insurance 

regulation. 

o In Guatemala, a single tax administration project has been complemented 

by new programs in budgeting, debt, financial access and central banking. 

• Regional Efforts. As OTA has deepened its bilateral engagements, it has also 

selectively supported regional reform and convergence efforts. 

o For example, OTA has projects in all five countries of the East Africa 

Community – Burundi, Kenya, Rwanda, Tanzania, and Uganda -- where 

members have shown a commitment to achieving monetary and financial 

convergence. 

• Strengthening Internal Management. In its ongoing effort to evaluate and 

improve its performance, OTA conducted an annual review of all its projects to 

assess performance. Management also conducted an efficiency review to 

streamline processes and ensure that the maximum amount of funding flows to 

programs in the field. The latter review laid the ground work to revamp OTA’s 

internal financial systems beginning in 2010. 

 
3

2009 Report 

Mission and Background 

OTA’s core mission has remained constant since its creation in 1991: to develop strong 

financial sectors and sound public financial management in countries where assistance is 

needed and there is a strong commitment to reform. Government financial management 

in all countries performs a dual function – laying down a framework for national 

economic growth on one hand, and providing fiscal governance on the other. These 

responsibilities, when well executed, create the pre-conditions for stability and 

sustainable progress. Where public financial management is weak, success in public 

projects is unlikely at best. OTA directs its financial technical assistance efforts to giving 

countries the foundation on which prosperity and social progress can be built. 

Early in OTA’s history, its mission was directed toward providing support to former 

communist countries in Eastern Europe and the former Soviet Union as they transitioned 

from centrally controlled to market-based economies. In 1998, Congress amended the 

Foreign Assistance Act to authorize a Treasury program (Treasury International Affairs 

Technical Assistance – “TIATA”) for technical assistance to foreign governments and 

central banks in developing or transition countries worldwide. The legislation authorizes 

Treasury to provide advisors with appropriate expertise “to advance the enactment of 

laws and establishment of administrative procedures and institutions in such countries to 

promote macroeconomic and fiscal stability, efficient resource allocation, transparent and 

market-oriented processes and sustainable private sector growth.” Since 1998, Treasury 

has received a separate appropriation every year (the “TIATA funds”) for OTA activities. 

The TIATA legislation stipulated that “technical assistance shall include elements 

designed to combat anti-competitive, unethical, and corrupt activities, including 

protection against actions that may distort or inhibit transparency in market mechanisms 

and, to the extent applicable, privatization procedures.” With the events of September, 

2001, the OTA mission expanded to include financial law enforcement assistance that 

combats international terrorism. 

The conditions under which the mission has been carried out have, at times, been 

extraordinarily challenging. For example, OTA sent advisors into Bosnia in early 1996, 

just after the December, 1995 Dayton Peace Accords were signed. Advisors were sent to 

Kosovo in 1999 with the signing of UN Security Council Resolution 1244. The first U.S. 

Government civilian technical advisor into Afghanistan in 2002 was an OTA advisor. In 

2003, a team of OTA advisors followed U.S. troops into Baghdad, and were instrumental 

in setting up processes for paying Iraqi civilian employees and getting cash into 

circulation. 
4

Program Management and Funding 

In FY 2009, OTA conducted 119 projects in 57 countries (including regional initiatives). 

Funding for these projects totaled approximately $50 million. Eighty-one of these 

projects, with a combined budget of $27.6 million, were financed either wholly or partly 

by TIATA funds. About a third of the projects were in Africa; a third in Latin America 

and the Caribbean; and a third throughout the rest of the world. Tables A and B at the 

end of this report provide additional data on OTA’s sources and uses of funding in FY 

2009. 

OTA initiated 47 TIATA projects in 2009. The 47 projects were in Latin America 

(Argentina, Chile, Colombia, Costa Rica, Guatemala [3], Haiti, Honduras, Mexico, 

Paraguay [2], Peru, Uruguay [2], and regional projects on small and medium enterprises, 

gaming, and auditing); Africa (Lesotho [2], Liberia, Mozambique, Rwanda, Senegal, 

Tanzania, Zambia and regional projects in East and West Africa); Asia (Cambodia [3], 

Indonesia [2], Vietnam [2], and an economic crimes regional project); in the Near East 

and North Africa (Algeria [2], Egypt, the Palestinian Monetary Authority, and Pakistan 

[2]); and regional and global projects addressing economic crimes, PEPFAR, targeted 

sanctions, rapid response to financial crisis, and cash forecasting. 

Department of Treasury

Office of Technical Assistance

Changes in Funding FY00 - FY09

($ in millions)

11.25

13.61

11.29

9.25 8.20 6.76 5.13 4.23 2.64 2.58

9.50

9.60

10.65

10.07

3.55

3.85 7.51

5.20

3.07 2.87

1.50

6.00

6.39 10.73

18.89

18.85

19.80

19.80

20.23

25.00

1.86

5.58

3.96

10.97

7.14

6.47

8.18

9.59

6.98

7.05

0

10

20

30

40

50

60

70

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

State/AID/DOD/MCC/gov't

TIATA

FSA

SEED

$24.11

$34.79

$32.29

$41.02

$37.78

$35.93

$40.62

$36.28 $35.53 $37.42

Note: For comparison purposes the above figures exclude TIATA carryover funds and supplemental appropriations (Iraq, Afghanistan, etc.). 

As the chart above indicates, TIATA appropriations have grown to be the single largest 

resource available to OTA for pursuing its mission. In addition to TIATA funding, OTA 

continues to receive Support for East European Democracy (SEED) Act and the Freedom 

Support Act (FSA) resources, although these latter resources have declined at an 
5

accelerated pace in recent years as the countries in these regions have become more selfsufficient and U.S. Government technical assistance less needed. TIATA funding can 

sometimes be used to co-fund projects with USAID, State’s Bureau of International 

Narcotics and Law Enforcement (INL), and other entities. OTA also receives funding 

through occasional supplemental appropriations. This funding, which has been used for 

countries such as Afghanistan and Iraq, is available only as exceptional needs arise and 

therefore not included in Table A, which focuses on “core” funding. Table B provides 

Fiscal Year 2009 Non-TIATA Sources of Funding (see tables in annex). 

Among OTA’s five core assistance areas, the breakdown in terms of project funding in 

2009 was as follows: Revenue 17%; Budget 14%; Economic Crimes 25%; 

Banking/Financial Institutions 19%; and Debt 25%. The chart below shows the 

allocation of OTA project funding by team. 

2009 TIATA Budget

Allocation By Team

Budget

14%

Economic 

Crimes

25%

Banking

19%

Debt

25%

Revenue

17%

OTA projects support important objectives in each of these five program areas: enhanced 

revenue collection and administration; improved budget formulation and execution; 

strengthened capacity to combat terrorist financing, money laundering, and other 

economic crimes; more effective banking systems; and better debt management. OTA 

projects also support a range of Treasury Department policy priorities, as well as broader 

USG foreign policy and national security goals. 

 

• Support for countries that are U.S. foreign policy or national security priorities, such 

as Afghanistan, Pakistan and Iraq. 

• Support for developing and transition countries affected by the financial crisis. 

• Support for regions and countries that are especially important in the fight against 

terrorist financing and money laundering. 

• Support for countries where development assistance needs are compelling, notably in 

Sub-Saharan Africa and parts of Latin America, the Caribbean and Asia. 
6

• Collaboration with other assistance providers, such as USAID, MCC, and State/INL, 

in an effort to leverage complementary efforts. 

 

Project Identification and Selection

Information about potential projects and requests for assistance come from many sources, 

including bilateral policy discussions, formal written requests from foreign governments, 

consultations with relevant Treasury offices, U.S. embassies, USAID missions, and from 

OTA advisors already on the ground doing other projects. 

For requests that are determined to be within OTA’s mandate and potentially viable, an 

on-the-ground assessment is carried out by subject matter experts, with the concurrence 

of the potential counterpart and with the clearance of the U.S. embassy. Assessment 

results are shared with potential counterpart management and the embassy. No project 

begins without agreement on the part of country officials that project goals are mutually 

understood and supported. In our experience, goals and objectives that are not “owned” 

by the counterpart country are seldom achieved. Assessments are also conducted 

periodically (typically once per year) of ongoing projects. 

Assessment results of potential and ongoing projects are compiled, vetted, and submitted 

by the managers of each of OTA’s five core disciplines for policy-level review. 

Decisions to initiate new projects, or to continue or terminate existing projects, are based 

on a number of criteria and considerations, notably: the counterpart’s need for technical 

assistance; evidence of the counterpart’s commitment to reform and to use assistance 

well; whether the project would usefully complement other projects in a particular 

country or region; the project’s relation to Treasury policy priorities and broader USG 

goals; and the availability of funding. Special consideration is given to sustaining 

projects that are already demonstrating good results. OTA discontinues projects that are 

not showing results. 

The number of promising projects typically exceeds available resources. In FY 2009, 

OTA was able to fund 67% of the number of projects that were considered promising 

enough to merit careful consideration. The final results of the project selection process 

are displayed at the end of this report in Table A, Fiscal Year 2009 Budget Execution 

Plan. Eighty-one separate projects (compared with 60 in FY 2008) are grouped 

geographically or as global projects in the following categories: Sub-Saharan Africa, 

Latin America and the Caribbean, Middle East/North Africa, and Asia. 

 

 
7

Note: The above figures exclude global and multi-region projects. 

In addition to country-specific projects, budgetary allocations were made for senior and 

regional advisors, global anti-terrorist activities, and global information technology 

assistance in support of combating financial crime, economic crimes assessment 

missions, and cross-discipline regional missions. 

The final version of the FY 2009 Budget Execution Plan employed $27.6 million of 

TIATA funds (including prior year carryover). 

Effectiveness

Over the years, OTA has come to realize that two elements have been especially 

important to our effectiveness. One is that we are part of the Treasury Department. This 

creates an institutional “kinship” with our counterpart ministries of finance, central 

banks, revenue administrations, and other financial institutions, and serves as a 

foundation for building a working relationship of trust between the advisor and the nonU.S. counterpart. 

The second critical element has been the dedicated TIATA account funded by annual 

appropriations. This funding channel, while very small as a share of overall USG 

funding for economic governance TA, has provided the necessary foundation for the 

development of a reliable, coherent program that supports Treasury’s international policy 

priorities. The TIATA account has been especially important as other sources of funding 

have declined in recent years. 

 

Project Delivery Models

OTA carries out technical assistance projects based on two basic designs: residential and 

intermittent. A residential project is anchored by an expert advisor living in the 

counterpart country, typically for a period of several years, and working side-by-side with 

counterparts in the Ministry of Finance, Central Bank, tax administration authority, or 

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

1

The Americas Asia Greater Middle East Sub-Saharan Africa

2009 TIATA Budget Allocation

By Region

(dollars in millions)

8.5

4.2 4.4

7.0
8

other government financial institutions. Our experience has been that working directly 

with the counterpart over a sustained period of time is critical for transferring knowledge 

and strengthening systems, especially in countries where government capacity is very 

limited. A resident project frequently includes, in addition to a resident advisor, the 

participation of short-term visits by experts in specialized areas. 

For an intermittent project, an advisor or group of advisors typically spend periods of two 

to three weeks at a time over several years working with counterparts. Between these 

multi-week direct engagements, the counterparts are usually expected to carry out 

planned activities that are directed toward the objectives stated in a mutually-agreed-upon 

work plan. Contact between intermittent advisors and counterparts by email, phone, or 

other means are common and often frequent. OTA often hires a permanent, full-time 

program assistant in country to support the intermittent project. 

The central factor controlling whether a residential or intermittent project model is 

selected lies in the understanding between the counterpart and the advisor of the nature of 

the problem to be solved and the best and most practical solutions to that problem. A 

project might, for instance, use one intermittent advisor who was in country for a total of 

three months over the course of a year. Another intermittent project might use two 

intermittent advisors who rotated, providing uninterrupted contact with counterparts. 

Several intermittent advisors, each with different technical specialties, might be present at 

any one time. 

There are certain elements common to both residential and intermittent projects. All 

projects require that advisors carry out their work in the country where the project is 

located. With the exception of rare study tours to other countries to get first-hand 

experience of exemplary practice, meetings at international conferences, and regional 

projects, OTA does not work with non-U.S. government officials outside of the 

counterpart country. We consider this in-country model to be critical to project success. 

Working side-by-side in the same workplace as our counterparts is an important element 

in building trust over time. Often the counterpart organization begins to think of the 

advisor as “one of us” during the course of a project. 

OTA’s small administrative staff in Washington, D.C. is focused on supporting projects 

in the field (travel, contracting, pay, personnel administration, project oversight, 

management review, finance, program representation, response to official queries on 

program activities, and executive oversight). 

Once a residential or intermittent project is selected for funding, a Terms of Reference 

(TOR) is discussed and agreed upon with the counterpart and co-signed. The TOR 

describes the broad goals of the project and represents a bilateral understanding at the 

policy level between the U.S. Treasury and the counterpart. Within a short period 

(normally six to eight weeks) after signing the TOR, a work plan is developed and agreed 

upon between the advisor and the working counterpart. This plan specifies objectives and 

planned completion dates, and is the primary basis for regular monthly progress reports to 

headquarters. The monthly reports are shared with counterpart institutions, U.S. Embassy 
9

staff, other bureaus and offices in Treasury, and other interested partners such as USAID, 

MCC, and the International Financial Institutions (IFIs). The reports form the information 

base for responses to project queries generated by U.S. Government officials. 

Treasury bears the cost of advisor salary, travel, and personal support. It also pays for 

office equipment and a local national program assistant. Treasury does not transfer funds 

or equipment to the counterpart country ministry as a regular part of project delivery. 

The host institution must provide office space for the advisor in its own headquarters 

building. It must also provide adequate electrical and communications connections. OTA 

is firm on these requirements, and has ended projects where the TOR was not respected. 

Post-Conflict Engagements 

OTA has engaged frequently and widely over the years in post-conflict settings. These 

engagements are distinct from other projects in a number of respects: physical danger; 

difficult working/living conditions; the need for close coordination between civilian and 

military personnel; sometimes the presence of special civilian authorities (e.g., the 

Coalition Provisional Authority in Iraq, the Office of the High Representative in Bosnia); 

and a sense of special urgency due to political, military and reconstruction imperatives. 

Frequently, especially in the early stages of engagement, there is no opportunity to 

develop carefully considered, mutually agreed terms of reference and work plans with the 

counterpart. The following subsections details noteworthy accomplishments in 

Treasury’s two principal post-conflict engagements, Afghanistan and Iraq. 

 

Afghanistan

In 2009, OTA began a significant increase in its advisory corps in Afghanistan as part of 

the broader civilian lift. Broadly, our efforts are aimed at (1) strengthening public 

finance management – strengthening budget systems, increasing domestic revenue, 

building capacity to conduct financial audits, enhancing debt management; and (2) 

strengthening the resilience of the financial system against abuse. OTA works primarily 

with the Ministry of Finance, the Central Bank, and a specialized Major Crimes Task 

Force. 

Thanks to strong macroeconomic management generally, and the completion of a number 

of specific reforms in 2009, Afghanistan was granted Completion Point status under the 

Enhanced Heavily-Indebted Poor Countries (HIPC) initiative in March 2010. This major 

accomplishment will bring cancellation of approximately $1.6 billion in debt from Paris 

Club members, the IMF, World Bank and other creditors. 

OTA’s government debt team has been engaged in Afghanistan since August 2003, 

providing training and support in debt management and cash management. Two resident 

advisors served from 2003 until December, 2008, and intermittent support has continued 

in 2009-2010 through quarterly visits and regular e-mail contact. An important 

accomplishment was the establishment of a regular quarterly cycle that reports 

information on the country’s external debt. These reports have been published 
10

successfully each quarter since March 21, 2008, and include disbursements, repayments 

and debt forgiveness during the quarter, and debt stock at the end of the reporting period. 

The loan repayment process has also been regularized, and a structure has been put in 

place for testing concessionality for all new loans. In late 2008, Afghanistan’s Ministry of 

Finance procured a well-recognized debt recording and management system to help 

manage its external debt, replacing a myriad of Excel spreadsheets previously used for 

this purpose. This system was successfully installed in January 2009 with assistance by 

OTA, and has provided the debt management unit with a significant increase in the 

quality and quantity of debt information. 

The OTA budget team’s effort in Afghanistan has focused on providing strategic-level 

advice to the Government of Afghanistan (GOA) Treasurer on strengthening public 

financial management within the Ministry of Finance (MoF) and across the government; 

assisting in monitoring the government cash position; developing capacity within the 

Cash Management Unit to improve cash forecasting; advising on updating the Afghan 

Treasury reform strategy; setting various goals and action plans for units within the GOA 

Treasury Department; monitoring the rollout of financial management systems and 

reforms (such as a verified payroll program); and assisting in the improvement of 

financial reporting including determining informational bottlenecks, improving the flow 

of information, and determining the best sources of specific information. 

The OTA revenue team is providing assistance to the MoF in collecting non-tax revenues 

and improving the internal audit function. The team is working with the Ministry of 

Transport and Civil Aviation to design and implement a basic revenue collection system 

at Kabul International Airport that will establish a transparent, auditable, and sustainable 

process for collecting aviation fees. In December 2009, a needs assessment at the 

Director General of Internal Audit (DGIA) led to the outline of a program to guide the 

Ministry of Transport on the proper use and function of internal audit. The program 

includes developing and conducting training programs in basic government accounting, 

internal audit procedures, fraud investigation, and audit techniques for information 

technology. In addition, OTA is helping define and clarify the role of internal audit in 

connection with Article 61 of the Public Finance and Expenditure Management Law, a 

law that would allow the DGIA to conduct internal audits of all ministries. 

The OTA economic crimes team has focused on developing a financial intelligence unit 

(FIU) staffed and trained to develop, populate, and access a database that contains reports 

on large cash transactions and suspicious activities from financial service providers, 

including, significantly, hawaladars. FIU analysis of information in this database 

supports, and is shared with, law enforcement agencies in Afghanistan and strengthens 

the regulatory regime to conform to international norms for preventing money laundering 

and terrorist financing. OTA efforts in Afghanistan have supported greater regional and 

international information exchange and cooperation including: membership in the Asia 

Pacific Group on Money Laundering; observership of the Eurasian Group on Money 

Laundering; an observership request to the MENA Financial Action Task Force (the 

regional body for the Middle East); memoranda of understanding signed with 

approximately a dozen other FIUs, including several in the neighborhood of Afghanistan: 
11

Japan, Russia, the United Kingdom’s Serious Organized Crime Agency; a Memorandum 

of Understanding requested for information sharing with Treasury’s Financial Crimes 

Enforcement Network; and a membership application submitted to the Egmont Group of 

Financial Intelligence Units that had the United States and Malaysia as sponsors. 

Iraq

In 2009, as for the preceding several years, OTA’s largest engagement in the world was 

Iraq with an average of 10 resident advisors over the course of the year. Treasury’s 

efforts were focused on strengthening public finance management (especially budget 

execution), support for the Central Bank (monetary policy), and restructuring state-owned 

commercial banks. 

For much of 2009, Treasury’s work in the area of public finance was implemented under 

the aegis of the Public Finance Management Action Group (PFMAG), an interagency 

partnership between the Department of Treasury and the United States military. With the 

reduction in U.S. military personnel, the PFMAG’s functions were merged into the U.S. 

Embassy structure. 

OTA accomplishments include: 

• Helped build capacity in the Finance Committee at the Council of Representatives 

to analyze the budget and associated budget law; 

• Analyzed proposals associated with bank restructuring; 

• Established reporting mechanisms for budget execution and budget project 

tracking; 

• Established a Ministry of Finance website with a user-friendly web page design; 

created a new web strategy for the Ministry; and increased transparency through 

continued updating of information, multi-lingual data, and consistency of 

reporting; 

• Worked with the Committee on Accounting Reform to document the accounting 

framework, as a first step in establishing the reform work plan and objectives; 

• Coordinated with the World Bank to ensure that objectives are established in 

alignment with Iraq Public Finance Management Action plan; and, 

• Coordinated work activities with USAID and the UK’s Department for 

International Development, ensuring cooperation and consolidated efforts at the 

Ministry of Finance and Iraqi Council of Representatives (parliament). 

OTA banking advisors have been assisting with the restructuring of Iraq’s two stateowned commercial banks -- Rafidain and Rasheed. The main focus of U.S. Treasury 

assistance has been the financial restructuring of these banks, the completion of the 

financial and operations audits of both banks, and the development of draft strategic and 

operational restructuring plans consistent with the audit recommendations. OTA assists 

in the implementation of core banking systems at both of these state-owned banks, a 

critical step in their evolution into modern financial institutions. Advisors are also 

working with the Central Bank of Iraq (CBI) on a bank supervisory data solution that will 

provide better and timelier information to senior management of the CBI. Other areas of 
12

collaboration include strategic planning for the CBI; ongoing advice to Governor Shabibi 

on the conduct of Iraqi monetary policy, which has continued to keep Iraq’s consumer 

price inflation in check; central bank physical security; and assistance as the CBI 

relocates to a new facility with sound security protocols. 

2009 Program Evaluation 

OTA’s continuously verifies and evaluates its own performance. Building on its 

initiatives in 2008, OTA conducted a review of all technical assistance projects to verify 

performance. It also reciprocated a peer-review process begun with the Australian 

Treasury in 2008. 

In 2008, OTA launched a tool to enhance its performance measures. This instrument, 

which was several years in the making, uses evaluations by resident advisors to rate 

projects based on both the level of engagement with the host government (“traction” in 

OTA parlance) and the changes that result from that engagement based on technical 

indicators specific to each of the five financial disciplines (what OTA calls “impact”). 

This innovative approach was showcased by the OMB Associate Director for 

Administration and Management in its presentation at the annual Excellence in 

Government Conference in 2008. Results from 2008 encouraged OTA to forecast goals 

for the next three years of 3.6 for Traction, and 3.1 for Impact – on a five-point scale. 

Though it had no way of predicting what the results might be for 2009, OTA was 

gratified when results for FY 2009 were on or quite close to our targets: 3.7 for Traction 

and 3.1 for Impact. In 2010, OTA will have three years of data and will be able to use the 

measures to look at trends and individual country movements. 

In 2009, the Department of the Treasury of the Government of Australia conducted a 

professional peer review of OTA work to assess its effectiveness. The review was 

beneficial and contributed to OTA’s mid- and long-term planning. The process was so 

successful that the Australian Treasury requested that the U.S. Treasury reciprocate the 

process, evaluating Australian financial technical assistance projects. The results of this 

second peer-review were presented to an international group of representatives from 

other countries who engage in financial technical assistance. The process was highly 

beneficial to both parties. The Australian Treasury became aware of how their projects 

were judged on process and results from a professional and technical point of view by an 

entity (OTA) that had no agenda but accurate reporting and evaluation. OTA itself also 

benefitted since the process required that we determine the relevant areas to evaluate, set 

criteria and methods to conduct the study, and fairly judge the work being done by a peer 

agency. Both parties felt they were served well. On the basis of OTA’s experience, we 

are recommending this process of voluntary peer review to other technical assistance 

organizations. 

 
13

Regional and Country Projects 

Government Debt (institutional, country, and regional capacity building) in East 

Africa: The East African Community (EAC) is the regional intergovernmental 

organization of Kenya, Uganda, Tanzania, Rwanda and Burundi. During the past decade 

there have been positive moves toward a monetary union, a common market, a political 

union, and an East African Single Tourist Visa. The East African Court of Justice, the 

East African Legislative Assembly, and an East African Passport have already been 

established. Through OTA debt team country projects, we are supporting these 

cooperative regional efforts. OTA assisted the Banque Nationale du Republique du 

Burundi in initiating the country’s five-year Financial Market Development Plan, which 

involved a broad range of domestic stakeholders in a participatory process as part of the 

East Africa Community Monetary & Financial Affairs convergence criteria. A debt 

project guided the Bank of Uganda in developing and implementing a new financial 

regulatory framework for the government securities market. In Kenya, OTA advised the 

Central Bank on the development and implementation of an inter-dealer market 

repurchase agreement to support secondary market liquidity and enhance market 

efficiency. In Rwanda, OTA assisted counterparts in the development and 

implementation of enhancements to the debt issuance program, including adapting a 

methodology for evaluating bids in the absence of other pricing guidelines. OTA assisted 

the Bank of Tanzania to advance key plans for its IT platform that will improve internal 

risk controls, provide the Government with “real time” cash balances, and meet East 

African Community criteria for the harmonization of payments across the five countries 

in the region. 

Tackling Roadblocks to Development – Infrastructure: An adequate supply of 

infrastructure – transportation (roads, airports), energy (generation plants, electric grids), 

school and hospital facilities, water and waste management systems. – has long been 

viewed as a key ingredient for economic development. In 2009, OTA created the 

infrastructure finance team (IFT), an initiative focused on strengthening the capacity of 

Latin American and Caribbean governments to structure and implement public-private 

partnerships and other means of financing infrastructure projects. Composed of 

specialists from OTA, and in collaboration with the Government of Chile, IFT provides 

technical assistance to promote accelerated development and implementation of welldesigned and fiscally sound infrastructure projects throughout the region. The 

Government of Costa Rica is hosting the pilot project for the IFT program, which is 

focused on helping the Ministry of Finance, along with the Ministry of Public Works and 

Transportation and the National Concessions Council, to finance and develop several 

high profile projects, including a major international airport, a primary commercial 

seaport, and light rail and toll road projects in the capital, San Jose. Helping ministries of 

finance to successfully navigate these complex, but critical, infrastructure deals is a new 

strategic focus for OTA, and the lessons learned from this pilot project will inform the 

program going forward. 
14

Broadening and Deepening OTA Engagements: Experience has convinced OTA that 

the approach with the greatest return on effort is to engage in reform of financial 

processes within a single country or region on a broad front, in a planned and sustained 

effort. The overall benefit of such an approach is that financial reform in our counterpart 

country is given a high priority, and generates purpose, focus and energy to a greater 

degree than gradual and less interdependent measures carried out over a longer period of 

time. Guatemala, Cambodia and Vietnam are examples of the kind of program 

interventions that OTA has found to be most productive. 

In Guatemala, four OTA teams conduct projects that cover a broad range of financial 

technical assistance. The budget project addresses budget execution projections, cash 

flow projection tools, transparency of government trust funds, macroeconomic estimates, 

revenue projections, and the fiscal impact of policy proposals. The revenue project 

focuses on audit planning and specialized compliance issues, management of the 

collection function, human resources management, audit reporting, overcoming audit 

obstacles, and increasing taxpayer compliance. The debt project seeks to create a new 

public debt law, introduce standardized fungible dematerialized government securities, 

enhance auction calendars, eliminate tax distortions, develop strategies for retail 

distribution of government securities, and strengthen government and central bank 

communications with the market. And the banking project works on measures to promote 

lending to small and medium-sized entrepreneurs, corporate governance, and consumer 

protection. At a regional level, the banking project supports the adoption of regulations 

that buttress broader financial inclusion of small and micro entrepreneurs. 

In Cambodia, the banking project promotes capacity for off-site inspection, upgrades the 

National Bank of Cambodia (NBC) capacity to supervise micro-finance institutions, 

provides top NBC management with global studies on overall banking system and risk 

identification frameworks, and develops the capacity to produce economic forecasts to 

support implementation of monetary policy. The economic crimes project assists in the 

design, organization and implementation of a financial intelligence unit, and the 

development of the legal and regulatory frameworks necessary for implementing an 

effective anti-money laundering/counter financing of terrorism national strategy – 

including mechanisms to fight trade based money laundering, bulk cash smuggling, 

organized crime, corruption, and other serious financial crimes. The budget project 

addresses identification and definition of all budget entities, preparation of multi-year 

strategic budgets, program budgeting, integration of recurrent and capital budgets, 

incorporation of off-budget expenditures and revenues into the annual budget, and budget 

classification. The revenue project drafts regulations for taxes on oil and gas import 

production, develops tools to audit oil and gas enterprises, develops procedures for 

auditing financial institutions, the construction industry and the telecommunications 

sector, and promotes a taxpayer education system to increase compliance. 

In Vietnam, all five OTA teams are engaged in projects at various stages. The 

government is still a socialist republic with limited expertise and virtually no institutions 

that support market economy functions. Nevertheless, the government of Vietnam is 

eager and dedicated to leading the country to participate actively in international finance 
15

and commerce. The banking project provided assistance to the Ministry of Finance on 

small and medium enterprise guarantee fund operation, and arranged a workshop with the 

U.S. Small Business Administration. The project also provided assistance regarding the 

Law on the State Bank of Vietnam and the Law on Credit Institutions. The economic 

crimes project coordinated and provided oversight of technical assistance programs to 

combat money laundering and terrorist financing, trade based money laundering, bulk 

cash smuggling, organized crime, corruption, and other serious financial crimes. OTA 

has worked closely with embassy teams and other organizations such as the UN Office of 

Drugs and Crime to leverage assistance being provided. From 2007 through 2009, the 

OTA economic crimes team co-sponsored and conducted several activities in Vietnam, 

Laos and Cambodia as part of an overall Mekong Regional effort. 

The budget project has begun deployment of an integrated Treasury and Budget 

management information system. This project also entails support for state budget and 

investment planning through medium term fiscal and expenditure frameworks, as well as 

development of a general accounting function within the Ministry of Finance to oversee 

and be responsible for the development of consolidated financial reports. The debt project 

works with the Ministry of Finance Banks and Financial Institutions Department on 

primary and secondary market development for government debt instruments, including 

the requisite infrastructure/mechanisms for trading and for transaction settlement, an 

organized distribution and market-making scheme, regulatory oversight, cash flow 

forecasting to support auction scheduling, and public outreach. The revenue project has 

helped shape a transformation of Vietnam’s tax administration through its support of 

human relations reform, the creation of an organization-wide anti-corruption strategy, and 

the development of a comprehensive training program for managers and collections 

employees. 
16

2009 COUNTRY-SPECIFIC HIGHLIGHTS 

Africa

Burundi

As part of its regional program, the OTA government debt team commenced engagement 

with the Bank of Burundi, following the Banque de la République du Burundi (Central 

Bank of Burundi accession to membership in the East African Community (EAC). OTA 

assisted in preliminary data gathering, development, and launch of a five-year financial 

market development program, involving public and private sector participants. The 

project has developed terms of reference and deliberation guidelines for stakeholders in 

accordance with the EAC convergence criteria. 

Ghana

For the last year, Ghana has not been able to issue longer term securities and so was 

reliant on the treasury bill market for its financing. Foreign investors make up the bulk of 

the investor base for Ghana's longer term (3 and 5 year maturities) bonds, but due to the 

erosion of the emerging markets during the global financial crisis and sharp decline of the 

Ghana Cedi, they have been absent from the market. A deterioration of the fiscal situation 

caused the government of Ghana (GOG) to seek IMF support, and Ghana has been 

precluded from non-concessional borrowing in the international markets. Recent 

improvement in the inflation rate and stability to slight improvement in the value of 

Ghana's currency have improved sentiment on the part of foreign investors, and the GOG 

plans to issue 3 year bonds in the very near future. Efforts to develop automated primary 

and secondary market platforms are moving forward. 

In every financial management environment, the coding structure for accounting is the 

basis for recording, analyzing and reporting on budgeting and accounting transactions. 

Currently, the central government is using two different coding structures. Local 

governments are required to prepare information in both formats, creating duplication of 

effort in both coding transactions and creating reports. Additionally, because of the 

various stand-alone systems, codes in one system do not necessarily agree with the codes 

being using in another system. To further complicate financial reporting, the local 

governments are using a third coding structure for local financial reporting purposes, 

while also using one of the federal coding structures for costs related to central 

government funding. Over the past year, OTA, working with the Controller and 

Accountant Generals Department, developed a final draft of a harmonized chart of 

accounts and instructions. Additionally, OTA helped to ensure that coding was 

consistent in all stand-alone systems. Once implemented, this new coding structure will 

ensure consistency in reporting, enhanced understanding of the coding structure resulting 

in fewer errors, easier consolidation of government-wide financial information, and 

reduction in staff time related to coding transactions and preparing reports. 
17

Mozambique 

Developing countries with newly-discovered petroleum resources have the hope and 

expectation of increased wealth, but often lack experience in working productively with 

outside partners. OTA helped tax administration staff in Mozambique to conduct the 

first-ever audit of a petroleum product importer. Essentially a “test run,” this audit of a 

compliant and cooperative multinational importer was useful in developing auditors’ 

skills and experience, and will prepare them to tackle more complicated audits of larger 

importers and “mega projects” such as the Mozal aluminum smelter. 

Kenya

To assure that debt funding objectives are met, the OTA debt project in Kenya advised 

the Kenya Central Bank on the development of a system of market makers to provide 

market liquidity, and encourage demand and favorable prices for government bonds. In 

addition, OTA advised the central bank on the development and implementation of a 

benchmark bond consolidation program, to reduce market fragmentation, and encourage 

the emergence of a yield curve to smooth pricing. OTA’s resident advisor was appointed 

as member of the legal and operations sub-committees, to directly provide advice and 

guidance to the Finance ministry. 

Lesotho 

Effective systems and staff capacity must be deployed to realize revenue objectives. 

OTA is working with the Lesotho Revenue Authority to develop a complete package of 

procedural manuals and related training materials that instruct employees on how to 

conduct audits fairly and efficiently, and collect debts due to the state. The Revenue 

Authority is implementing a time-and-case-activity report for an auditor that allows 

managers to measure productivity and guide the work of the staff. According to a 

preliminary study, as little of 60% of the potential tax revenue in Lesotho is collected by 

the Government. OTA’s revenue and economic crimes team advisors are providing 

guidance on measures to identify unregistered taxpayers and broaden the tax base. 

OTA has also worked with the Lesotho Revenue Authority for the past year to establish a 

separate department to identify, investigate, and prosecute tax fraud in an effort to 

increase voluntary compliance with the country's tax laws. OTA assisted in determining 

the organizational structure of this department, identifying and training staff, drafting 

operational, procedural and policy guidelines, and integrating the new department into 

the Revenue Authority as well as law enforcement and other relevant authorities in 

Lesotho. OTA also mentored a number of significant investigations to successful 

conclusion. 

Namibia

 

Over the past two years an OTA economic crimes team resident advisor has been colocated at the Bank of Namibia working with counterparts to complete establishment of 
18

the country's anti money laundering and combating terrorist financing (AML/CFT) 

regime. This includes a financial intelligence unit (FIU) which became operational in 

July 2009, and is receiving and analyzing suspicious transaction reports filed by banks 

and other financial institutions. The FIU meets all international standards and is now 

applying for membership in the Egmont Group, the international organization of FIUs 

now consisting of over 100 country members. 

 

Niger 

OTA terminated its revenue project in November 2009 following the US decision to cut 

off non-humanitarian aid to the government of President Mamadou Tandja. Before 

closing the project, an OTA advisor had brokered an information-sharing agreement 

among the tax authorities and customs, the Transport Ministry, and the Ministry of 

Energy and Mining. This agreement enables the verification of tax returns with data such 

as luxury car registrations and ore production figures. 

Rwanda

OTA’s government debt regional advisor to the East African Community assisted 

counterparts in the development and implementation of enhancements to the debt 

issuance program in Rwanda. This included adapting a methodology for evaluating bids 

in the absence of other pricing guidelines. 

Senegal

In September 2009, OTA began a new resident debt project in Senegal’s Ministry of 

Finance. Initial work has focused on improved cash forecasting and the implementation 

of a debt calendar in order for the Government of Senegal to issue debt securities in the 

domestic market predictably and regularly. Marginally successful auction results in 

November highlighted the need for better auction planning and execution, as well as 

improved communication with the market. 

Tanzania 

OTA has been instrumental in helping the Bank of Tanzania advance key strategic plans 

for upgrading its information technology platform. The system will improve internal risk 

controls, provide the Government with “real time” cash balances, and meet East African 

Community criteria for the harmonization of payments across the five countries in the 

region. This “leveraging technology” initiative was developed as a specific response to 

the continuing global financial crisis. A robust IT platform will enable the Government 

to manage its cash balances and budget implementation more efficiently at a time when 

fiscal resources are stretched. The Tanzanian efforts are modeled on Ghana’s recent 

successful implementation of a fully automated central bank IT platform and Treasury 

single account for cash management. 
19

Asia and Near East 

Algeria 

OTA activities at Banque d’Algerie, the Algerian central bank, are being carried out in 

connection with OTA’s highly successful resident banking project in Algiers. The 

resident banking advisor recommended the development and implementation of a bank 

rating system for off-site and on-site inspections to the Banque d’ Algerie. Employing 

these inspections in their assessment and evaluation of prudential risks of banks and 

financial institutions within the Algerian banking sector will greatly increase the integrity 

and stability of the system. Additionally, under OTA direction a Code of Ethics has been 

established for the inspection staff, as well as a broader-scoped one for the bank as a 

whole. OTA also deployed a banking advisor to provide assistance in the development of 

a certification program for inspectors of the Bank Supervision Department 

With OTA assistance, the Algerian Direction Générale des Impôts (DGI) is well on its 

way to launching a multi-million Euro initiative that will IT-enable a modern tax 

administration. OTA assisted in establishing a unit in charge of the modernization 

program; developing and issuing a tender for development and implementation of an 

integrated tax IT system; negotiating terms with the successful contractor; and creating an 

informatics modernization implementation plan. Though the DGI initially had little 

capacity to initiate and manage such a major reform package, continued assistance will 

assure the DGI’s ability to manage this large and complex IT contract. 

Following an OTA information management and technology assessment, and a report 

with specific recommendations on process management and equipment acquisitions, 

Algeria’s financial intelligence unit hired a full complement of analysts and established 

permanent office space. Shortly thereafter, OTA delivered a financial analysis training 

course to all FIU staff and board members. 

Cambodia 

In the fall of 2009, OTA launched a revenue project with Cambodia’s General 

Department of Taxation (GDT). The project includes audit of financial, construction and 

telecommunications industries; taxpayer education and taxpayer services; and taxation of 

the oil and gas sectors. The GDT established a special task force for taxpayer service and 

education. OTA will help to develop strategic and operational plans for this function and 

conduct a four-day strategic planning training for members of the task force. 

Egypt 

OTA’s work with the Egypt Insurance Regulatory Authority concluded with a mock 

AML/CFT inspection of a major insurance company in Egypt. The inspection was 

conducted with the cooperation of the insurance company, resulting in the complete 

inspection cycle for the company and a final report. This proved to be a beneficial 

approach to mentoring Egypt’s insurance regulators and the inspected company’s staff. 
20

This successful approach will be extended to the OTA project in Jordan, where both the 

insurance and securities regulators have embraced the concept. 

Indonesia

In 2009, OTA’s government debt advisor worked closely with the Director General for 

Debt Management on the design and launch of a global Treasury note program. In 2009, 

there was a total issuance of US $3 billion, using 5 and 10-year tenors. The offerings 

allowed the government to boost its foreign reserves without reliance on concessionary 

financing tools or donor support during a critical period. The project helped revise and 

streamline the T-bill issuance process, resulting in the formation of an effective bill curve 

with benchmarks; worked with the Ministry to identify risk exposure arising from stateowned enterprise subsidies, loans and guarantees; and helped design a more robust and 

comprehensive risk management program, including risk modeling, sustainability 

analysis, and IT requirements. OTA also worked on the introduction of new instruments, 

including the first domestic (IDR) and global (US$) Sukuk securities, as well as the first 

Sharia-compliant government security targeting retail investors; standardization of the 

issuance and distribution mechanism using the multiple price auction structure for all 

classes of securities; and selection of appropriate equipment that matches the technical 

and regulatory requirements for a fully functional trading desk. 

The OTA revenue team worked closely with Indonesia’s Director General of Taxation 

(DGT) to develop an internal document management system. This included donating 

software and training DGT staff in its use. The new system will be used throughout the 

DGT to better document and standardize procedures. A special sub-directorate for 

internal document management has been established to supervise and guide the rollout of 

the new system to other functions. The DGT has also expanded its e-filing programs and 

expects that companies will file all value-added taxes on line by late 2010. A pilot 

document processing center was opened in January 2008, and efforts remain on schedule 

to establish additional centers in two other cities. 

 Mekong Regional 

The OTA economic crimes team operated successfully in the Mekong target countries of 

Vietnam, Cambodia and Laos. In 2009, OTA provided information technology and 

financial intelligence unit mentoring to Laos and Cambodia. OTA conducted a legal 

review of the Lao decree guidelines and penal law for its anti-money laundering 

intelligence unit. Bulk cash smuggling training was delivered to Laotian border 

authorities as part of an Association of Southeast Asian Nations initiative. In Cambodia, 

OTA provided financial investigative techniques training to law enforcement personnel 

and judges. 

 

Palestinian Monetary Authority 

OTA provided financial investigative techniques training for investigators and 

prosecutors in Ramallah. This training built on the financial analyst training presented 
21

earlier in the month to analysts at the nascent financial intelligence unit, as well as to law 

enforcement and regulatory personnel involved in combating financial crimes. 

Latin America and Caribbean 

Colombia

OTA provided assistance to the Colombian National Directorate of Tax and Customs 

(DIAN) in the areas of internal control, international audit, and disciplinary 

investigations. OTA training focused on internal audit techniques and expanding audit 

scope in accordance with internationally accepted internal audit standards. OTA led a 

strategic planning session with the Office of Disciplinary Investigations, and a new code 

of ethics was presented to all employees. 

Training was also delivered on transfer pricing, including a well-publicized presentation 

sponsored by the tax and customs directorate to 125 accountants at their training facility. 

The purpose was to inform tax practitioners of the training that the directorate’s 

employees were receiving in the technical tax law area of transfer pricing. 

Costa Rica

With its economy closely tied to the United States, Costa Rica faced a surging budget 

deficit during the global financial crisis because of significant drops in revenue. The 

Government made a policy choice to maintain spending for critical social programs and 

to strengthen other anti-poverty initiatives. These policies required raising an 

unprecedented amount of money in the domestic bond market. OTA helped the 

government successfully secure the required funds by adjusting debt issuance strategies 

and by offering investors a broader choice of instruments and maturities. During the first 

half of 2009, a surge in expenditures, combined with a decline in revenues, produced a 

$347 million central government deficit. While this figure amounts to just over one 

percent of projected 2009 GDP, it represents a significant departure from the $246 

million dollar surplus recorded in the first half of 2008. OTA’s government debt advisor 

in the country has been working with the Ministry of Finance to help ensure that the 

domestic market will be able to continue to fund the growing budget deficits. 

Haiti

OTA‘s economic crimes team has been building capacity to investigate and prosecute 

money laundering, financial crime and corruption, and to seize and forfeit illicit assets. 

Haitian President René Préval strongly supports these efforts which have resulted in 

establishing a Haitian Financial Intelligence Unit (FIU), an investigative unit (Bureau des 

Affaires Financieres et Economique - BAFE), and an asset forfeiture fund to manage 

seized assets. Haitian banks are now filing currency transaction and suspicious activity 

reports, and BAFE has two dedicated investigating magistrates, two prosecutors and 20 

trained financial investigators. In its first successful seizure, over US $20 million worth 
22

of assets located in Haiti were seized from Haitian drug traffickers. Kidnapping and 

corruption, along with the financial crimes these engender, are also being investigated by 

the BAFE. As part of ongoing information technology support provided by OTA, the FIU 

is being connected to a state-of-the-art electronic system that receives reports from banks, 

non-banking financial institutions, and other obligated entities, and ties into available 

data bases in Haiti. 

OTA revenue advisors led an advanced training program on auditing banks and insurance 

companies for the Direction Générale des Impôts (DGI’s) Large Taxpayer Office, in 

support of an initiative to improve audit procedures and technique. Tax accounting rules 

pertaining to banks and insurance companies are highly idiosyncratic and require 

specialized skills – which up to that time did not exist in the DGI. As a result of the 

training, DGI auditors have since completed desk audits of all Haitian insurance 

companies and issued notices with significant proposed tax adjustments. The DGI is now 

scheduling on-site audits. In May 2009, auditors started on-site tax audits of all Haitian 

banks, marking the first time that the DGI has ever audited these institutions. 

Honduras 

OTA assistance to the Government of Honduras was on hold after the coup d'etat in June 

2009. In coordination with the US Embassy, an OTA advisor in Tegucigalpa held 

informal discussions with the economic transition team for President-elect Lobo. 

 

Jamaica 

At the request of the Jamaica Tax Administration, OTA completed an assessment of its 

reform needs and delivered urgent technical assistance to begin developing a large 

taxpayer office. Efforts thus far have focused on the creation of a pilot regional office. 

Corporate audit training was completed, with Tax Administration staff receiving 

specialized industry audit technique guides in key areas such as commercial banking, 

construction and hotels. 

Mexico

In 2009, OTA’s economic crimes team conducted a number of activities with the 

Government of Mexico to develop and strengthen the country’s ability to combat 

economic crimes, principally money laundering of the proceeds from multibillion dollar 

sales of illegal drugs. 

• OTA presented three courses in financial investigative techniques to elements of 

the Mexican federal police, the financial intelligence unit, the Mexican Treasury 

Department, and the Attorney General’s office. One of these courses included an 

imbedded moot court component presented by former and current US federal 

prosecutors and a US federal judge. 

• OTA presented a new, advanced money laundering analysis course to prosecutors 

of Mexico’s high level organized crime unit, and senior analysts of Mexico’s FIU. 
23

This course was collaboratively developed with personnel from Mexico’s FIU as 

well as OTA economic crimes advisors. 

• OTA conducted a number of assessment visits to Mexico and the following 

courses: Financial Investigative Techniques; Advanced Anti- Money Laundering 

Analysis; Financial Investigative Techniques II; Forensic Accounting; and 

Securing Evidence at a Crime Scene; Anti-Corruption Training in the Public & 

Private Sectors; Supervision and Regulation of Money Service Businesses 

(MSB’s); Basic and Advanced Analysis for Financial Intelligence Units; and, 

Financial Undercover Investigations. 

Finally, significant progress has been made in the development of a comprehensive 

economic crimes curriculum. 

Nicaragua

In June 2009, OTA concluded five years of technical cooperation with Nicaragua’s tax 

administration. In its last year, the project focused on advanced audit techniques. A new 

audit manual and redesigned forms were published and distributed for use at tax offices 

nationwide. During the final site visit, OTA’s project manager attended the opening of 

the Government of Nicaragua’s Tax Training School. 

Paraguay

OTA’s banking and financial sector program at the Banco Central del Paraguay, 

Paraguay’s central bank, came to a completion at the end of 2009. The project was 

highly successful overall, as a number of major initiatives were launched over the 

project’s life: (1) the creation of a working group on the issue of financial sector stability, 

an initiative that eventually led to the establishment of a Financial Stability unit within 

the Superintendency of Banks; (2) the introduction within the superintendency of a new 

early warning system; and (3) the review of the regulatory framework for microfinance in 

Paraguay. In 2009, the central bank produced the first-ever Financial Stability Report for 

Paraguay. As background to this landmark, in late 2006 the resident OTA advisor had 

established a Working Group on Financial Sector Stability, just months before the onset 

of the global financial crisis. Subsequently, this Working Group was formalized in the 

form of a Committee report to the central bank’s board. Eventually, a Financial Stability 

Intendancy was established, which is now responsible for coordinating production of the 

report and monitoring overall financial sector stability. 

OTA's budget work in Paraguay focused on strengthening budget analysis, supporting the 

implementation of modern treasury practices such as a treasury single account and 

contributing to the Finance Ministry's modernization of its integrated financial 

management information system. Key accomplishments included: 

• Designing and implementing a new system to analyze the budget and policy; 

• Analyzing impacts of proposed budget supplementals; 

• Training budget staff in budget analysis and facilitating reviews of selected 
24

government programs to use those analytic techniques; 

• Preparing recommended modifications to the tools used to analyze and present the 

annual and multi-year budgets; 

• Publishing biannual budget bulletins for citizens and policy makers; 

• Leading a study tour to Costa Rica to investigate that country's successful 

Treasury reforms; and 

• Facilitating the identification, with consensus support from senior management of 

priority improvements to the management information system. 

These accomplishments have laid a solid foundation for improved budget analysis that 

will strengthen the budget as a strategic planning tool, as well as implementation of a 

treasury single account by a working group that was convened by OTA and strengthening 

of the management information system. 

Eurasian Group 

Albania

In 2009, OTA assisted the Ministry of Finance in negotiating and closing a syndicated 

loan that provided critical financing during a period of extreme market illiquidity. The 

team also provided advice and support in developing cash flow projections and budget 

strategies that enabled the Ministry to take action to avoid cash shortages throughout the 

year. The Government has also opened its domestic government securities market to 

international participants, which has attracted foreign investors to the domestic local 

currency debt market. Within the Ministry, a reorganization of the debt department has 

resulted in the creation of a debt directorate that will permit the hiring of a more 

professional staff and elevate the importance of debt and capital market activities. The 

Ministry has also begun quarterly reporting of statistical information related to debt 

issuance, interest payments and risk parameters. 

Azerbaijan 

In September 2009, OTA’s revenue team finished its seven-year project in Azerbaijan by 

providing assistance in anti-corruption and audit. In the anti-corruption sphere, a code of 

ethics was written in a cooperative effort between OTA and a working group from the 

Ministry of Taxes. Trainers were trained, and a plan to train the entire organization was 

designed and implemented. Next, OTA worked with the Deputy Minister to establish an 

effective internal security function. 

In the audit area, the goal was to create a set of standardized forms and checklists that 

would both guide the employees through audits and record what they did. The project had 

significant traction and impact. The audit function improved from a level of 

effectiveness most often identified with third world countries to a professional level equal 

to that found in the United States and Europe. 
25

Bosnia

The Central Bank of Bosnia Herzegovina operates as a currency board and this has been 

the key element of Bosnia's financial stability. During the global financial crisis the 

Central Bank Governor came under great pressure to introduce a lender of last resort 

facility. Under a currency board, a lender of last resort facility would need to be very 

limited and even this limited facility would run risks for the Board. The OTA banking 

advisor recommended against the establishment of a lender of last resort facility, giving 

the Governor arguments that he needed to withstand the pressure to introduce such a 

scheme in Bosnia. In this instance, OTA’s engagement, while brief and focused on one 

issue, was enormously consequential. 

Georgia 

OTA’s activities in 2009 occurred against the backdrop of domestic Georgian political 

events related both to the war and the global financial crisis. With the assistance of the 

OTA government debt team, Georgia was able to restart a domestic debt issuance 

program. OTA assisted the national bank in formulating two major new monetary policy 

instruments - currency auctions for injecting foreign currency (US$) into the economy 

and currency swaps for injecting local currency into the economy. OTA assisted in 

preparing tender specs for two new systems at the national bank – a national payments 

system and a reserves management system. 

Kazakhstan 

OTA’s banking worked with the Central Bank of Kazakhstan, the Financial Supervisory 

Agency, and the Kazakhstan Deposit Insurance Fund to help them assume responsibility 

for bank resolutions through the development of policies and procedures for addressing 

weak and failing financial institutions. Kazakhstan was particularly hard hit by the global 

financial crisis, despite having enjoyed a decade of relatively strong growth in the 

financial sector. This mission was part of OTA’s financial crisis response program for 

countries in Emerging Europe. 

 
26

Annex 1: OTA Strategic Plan 

STRATEGIC PLAN 2006-2010 

U.S. DEPARTMENT OF THE TREASURY 

OFFICE OF TECHNICAL ASSISTANCE 

Mission. The mission of the Treasury Department’s technical assistance program, 

managed by the Office of Technical Assistance (OTA), is to support the development of 

strong financial sectors and sound public financial management in countries where 

assistance is needed and there is a strong commitment to reform. 

OTA pursues this mission in support of the Treasury Department’s overall mission “to 

promote the conditions for prosperity and stability in the United States and encourage 

prosperity and stability in the rest of the world” as well as broader U.S. Government 

international objectives, such as increasing transparency and accountability, reducing 

corruption, and strengthening the development of market-based policies and practices. 

Vision. OTA aims to build upon its reputation as a high-quality provider of 

comprehensive financial sector technical assistance and policy advice. It intends to be 

recognized as the provider of choice wherever its multi-disciplinary assistance model best 

addresses country needs and Treasury or U.S. Government objectives. 

The foundation of OTA’s program will continue to reside in five core disciplines – 

Banking and Financial Services; Budget Policy and Management; Financial 

Enforcement; Government Debt Issuance and Management; and Tax Policy and 

Administration, complemented by the ability to support other aspects of financial sector 

strengthening. 

Values 

• OTA will continue to place the highest priority on capacity building and 

developing country self-sufficiency.

• OTA exits countries when project objectives are accomplished or if country 

commitment to reform is not sustained. 

• OTA program engagements are distinguished by flexibility, selectivity and 

responsiveness.

• OTA recognizes that its core strength lies in the dedication, adaptability and 

expertise of its advisors. 

Programmatic Goals 

• Encourage depth of engagement and an integrated, multi-discipline approach. 

Where circumstances warrant, deeper, stronger, more comprehensive 

engagements may improve the prospects for material impact. 

• Encourage an approach that targets geographic regions and common financial or 

economic problems. Look for opportunities to place advisors in countries with 

common needs by virtue of location, financial structure (e.g. significant 
27

dependence upon donor revenue), or dislocations (e.g. highly affected by 

extractive industry income). 

• Provide specialized multi-discipline programs and rapid response teams to 

support key Treasury and U.S. Government priorities. React quickly to: needs in 

post-conflict/post crisis/failed state countries; opportunities to combat terrorist 

funding and corruption; requirements for access to financial services; country 

requirements to address revenue deficiency; and development of financial 

management information systems. 

• Recruit, retain and support a cadre of advisors that manifests OTA’s tradition of 

excellence. 

• Continue to strengthen OTA coordination within Treasury and with other parts of 

the U.S. Government. 

• Enhance awareness of Treasury’s technical assistance program.

• Ensure that OTA’s management systems fully support the achievement of our 

mission. For example, appropriate access to current financial data, timely human 

resources processes, program evaluation and management, and ability to be 

responsive to standard and ad hoc reporting requirements are essential to 

supporting OTA’s mission and advisor corps. 

 

Geographic Goals 

The following points note broad geographic/regional goals. More detailed regional and 

country-specific objectives will be set out in annual implementation plans. 

• Sub-Saharan Africa (SSA). Recognize the acute need for assistance in this region, 

and seek opportunities to initiate or strengthen engagements with reform-minded 

countries. 

• Broader Middle East/North Africa (BMENA). Seek opportunities to strengthen or 

initiate engagements in BMENA countries, with special attention to countries that 

are key to U.S. foreign policy priorities. 

• Latin America and Caribbean. Given the importance of encouraging stability, 

growth, and friendly relations within this hemisphere, identify opportunities to 

support reform-minded countries and sub-regions.

• Asia. Identify opportunities to engage in those countries where Treasury and the 

U.S. Government have substantial interests. 

• Former Soviet Union/Central and Eastern Europe (FSU/CEE). Manage the 

phase-out and shift of OTA activities from the FSU and CEE to regions where 

needs are greater. As this process continues, support selected sub-regions and 

countries in the FSU/CEE area where significant needs still exist. 
28

Table A FISCAL YEAR 2009 BUDGET EXECUTION PLAN Treasury International Affairs Technical Assistance (TIATA) 

Project Allocation from Fiscal Year 2009 TIATA Budget

Team Advisor Category Co-Financing T

LATIN AMERICA AND CARIBBEAN

Regional LAC Advisor: US-based ENF Full-time TDY $ - $ 

Regional LAC Advisor: Paraguay FIT Resident $ - $ CAM Regional Training ENF Intermittent $ - $ Audit Phase II Implementation TAX Intermittent $ - $ Argentina ENF Intermittent $ - $ Chile ENF Intermittent $ - $ Colombia TAX Intermittent $ - $ Costa Rica BUD Intermittent $ - $ Costa Rica GDIM Resident $ - $ Costa Rica TAX Project Coordinator + Intermittents $ - $ Dominican Republic GDIM Resident $ - $ Guatemala BUD Resident $ - $ Guatemala FIT Resident $ - $ Guatemala GDIM Resident $ - $ Guatemala TAX Project Coordinator/Intermittents $ - $ Haiti TAX Project Coordinator + Intermittents $ 250,000 $ Honduras BUD Resident $ - $ Honduras GDIM Resident $ - $ Honduras TAX Project Coord + Intermittents $ - $ Mexico ENF Intermittent $ - $ Nicaragua GDIM Resident $ - $ Nicaragua TAX Project Coord + Intermittents $ - $ Paraguay BUD Resident $ - $ Paraguay ENF Intermittent $ - $ Paraguay (PAPAP Continuation) ENF Resident $ - $ Paraguay FIT Resident $ - $ Paraguay GDIM Resident $ - $ 
29

Team Advisor Category Co-Financing T

LATIN AMERICA AND CARIBBEAN

Peru TAX Intermittent $ - $ 

Uruguay FIT Intermittent $ - $ Uruguay ENF Intermittent $ - $ Infrastructure Finance Team GDIM Intermittent $ - $ Gaming ENF Intermittent $ - $ Subtotal Latin America and Caribbean $ 250,000 $ 8

Team Advisor Category Co-Financing T

ASIA

RegANE (Mekong Regional) ENF Resident $ - $ 

Cambodia BUD Resident $ - $ Cambodia FIT Resident $ - $ Cambodia TAX Intermittent $ - $ Indonesia TAX Project Coordinator + Intermittents $ - $ Indonesia GDIM Resident $ 261,514 $ Philippines ENF Resident $ - $ Vietnam TAX Project Coordinator + Intermittents $ - $ Vietnam GDIM Intermittent $ - $ Vietnam FIT Combination (Res + Int) $ - $ Subtotal Asia $ 261,514 $ 4

Team Advisor Category Co-Financing T

GREATER MIDDLE EAST

Regional Middle East Advisor: Jordan ENF Resident $ - $ 

Regional Greater Middle East Advisor: UAE GDIM Regional $ - $ Regional Africa/Middle East Advisor: Egypt ENF Regional $ - $ Afghanistan ENF Resident $ - $ Algeria FIT Resident $ - $ Algeria ENF Intermittent $ - $ Algeria TAX Project Coordinator + Intermittents $ - $ Egypt ENF Intermittent $ - $ Pakistan FIT Intermittent $ - $ Pakistan ENF Intermittent $ - $ Palestinian Monetary Authority ENF Intermittent $ - $ Subtotal Greater Middle East $ - $ 4
30

Team Advisor Category Co-Financing T

SUB-SAHARAN AFRICA

African Development Bank ENF Resident $ - $ 

East Africa Regional (Kenya) GDIM Resident $ - $ East and Southern Africa Regional FIT Resident $ - $ West Africa Regional ENF Intermittent $ - $ Ghana BUD Resident $ - $ Ghana GDIM Resident $ 460,280 $ Lesotho ENF Intermittent $ - $ Lesotho TAX Intermittent $ - $ Liberia TAX Intermittent $ - $ Mozambique TAX Project Coordinator + Intermittents $ - $ Namibia ENF Resident $ - $ Niger TAX Project Coordinator + Intermittents $ - $ Rwanda-Burundi GDIM Intermittent $ - $ Senegal GDIM Resident $ - $ Tanzania GDIM Resident $ - $ Zambia BUD Resident $ - $ Zambia FIT Resident $ - $ Subtotal Sub-Saharan Africa $ 460,280 $ 7

Team Advisor Category Co-Financing T

SENIOR AND REGIONAL ADVISORS

Regional Global Advisor: US FIT Full-time TDY $ - $ 

Regional Global Advisor: Africa BUD Resident $ - $ Regional Global Advisor: US BUD Full-time TDY $ - $ Regional EurAsia Advisor: Poland ENF Resident $ - $ Regional Global Advisors: US TAX Full-time TDY (2) $ - $ Senior Advisor: US GDIM Full-time TDY $ - $ Subtotal Senior and Regional Advisors $ - $ 
31

Team Advisor Category Co-Financing T

OTHER FUNDED ACTIVITIES

Prepping for PEPFAR BUD Intermittent $ - $ 

Global FIU Analysis & Architecture ENF Intermittent $ - $ Financial Crisis -- Rapid Response FIT Intermittent $ - $ Global Cash Forecasting GDIM Intermittent $ - $ Subtotal Other Funded Activities $ - $ 

GRAND TOTAL $ 971,794 $ 
32

Table B 

2009 Non-TIATA Sources of Funding Treasury International Affairs Technical Assistance (TIATA)

Transfer 

Purpose Source Category Amount

TA to countries of Eastern Europe (SEED Act-funded) USAID 632(a) $2,576,000 

TA to countries of the Newly Independent States (FSA-funded) USAID 632(a) $2,865,000 TA to Gov't of Afghanistan USAID 632 (b) $800,000TA to Gov't of Afghanistan STATE 632(a) $4,500,000Tax TA to Gov't of Haiti USAID 632(a) $250,000Economic Crimes TA to Gov't of Haiti STATE/INL 632(b) $400,000Government Debt TA to Gov't of Ghana USAID 632(b) $460,280TA to Gov't of Honduras USAID 632 (a) $250,000TA to Gov’t of Guatemala USAID 632 (a) $100,000TA to Gov't of Paraguay under MCC Threshold Country Plan USAID 632(b) $196,981Economic Crimes TA to Gov’t of Georgia STATE 632(b) $248,989Economic Crimes TA in Middle East/North Africa STATE 632(b) $300,000Economic Crimes TA to Gov't of El Salvador STATE/INL 632(b) $ 9,688Economic Crimes TA to Gov't of Armenia STATE/INL 632(b) $126,546Economic Crimes TA to Gov't of Argentina Gov of Argentina n/a $33,845 Budget, Banking TA to Gov’t of Iraq STATE 632 (b) $7,750,000 Debt TA to Gov’t of Indonesia USAID 632 (a) $261,514OTA Liaison to AFRICOM (Stuttgart) DOD MIPR $306,428OTA Liaison to CENTCOM DOD MIPR $227,693Economic Crimes TA to Gov't of Kazakhstan STATE/INL 632(b) $35,060 Tax TA to Gov't of Honduras Gov of Honduras n/a $276,747 Tax and Economic Crimes TA to Gov't of Lesotho Gov't of Lesotho n/a $ 526,267TOTAL $22,501,038