DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

2008 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).
 2 

TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

2008 REPORT 3

PROGRAM MANAGEMENT AND FUNDING 3

OTA Business Model 6

OTA Delivery Model 7

2008 PROGRAM EVALUATION 10

REGIONAL AND COUNTRY PROJECTS 12

COUNTRY SPECIFIC HIGHLIGHTS 18

ANNEX 1: STRATEGIC PLAN 2006-2010 39

TABLE A - FISCAL YEAR 2007 BUDGET EXECUTION PLAN 41

TABLE B - FISCAL YEAR 2007 Non-TIATA Sources of Funding 45
 1 

Report to Congress

Executive Summary

This report details FY 2008 program developments and resource expenditures of the 

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

of Technical Assistance (OTA). Several developments were especially noteworthy.

 Financial Crisis Response. OTA has increasingly turned its attention to countries 

affected by or vulnerable to the financial crisis. As the international community takes 

steps that will allow for the provision of extraordinary levels of financial support, 

there is an urgent need for complementary financial technical assistance to help 

countries determine the extent of their vulnerability, address immediate crisis-related 

challenges, and lay the groundwork for recovery. Such assistance will also improve 

the chances that external funding will be managed in a way that avoids the build-up 

of unsustainable debt. For countries that were heavily indebted until only recently, 

and for donors that provided debt relief, this is an important consideration.

 PEPFAR. The 2008 legislation re-authorizing the President’s Emergency Plan for 

AIDS Relief (PEPFAR) provided that OTA is authorized to provide assistance “to 

finance, health, and other relevant ministries to improve the effectiveness of public 

finance management systems in host countries to enable such countries to receive 

funding to carry out programs to combat HIV/AIDS, tuberculosis, and malaria and to 

manage such programs.” This provision reflects a recognition that sustaining the 

benefits of PEPFAR depends in part on strengthening the capacity of counterparts to 

manage resources and programs well. OTA continues to seek PEPFAR funds to 

implement this provision.

 Iraq and Afghanistan. As part of the broader civilian surge, OTA more than doubled 

its advisor presence in Iraq over the course of 2008. Currently, OTA has 12 resident 

advisors in Baghdad working with the Finance Ministry and Central Bank. Their 

work has focused on public financial management, in particular strengthening 

implementation of the national budget and increasing effectiveness of the banking 

system. While technical in nature, the strategic importance of such work for broader 

stabilization and reconstruction objectives has become increasingly evident. Treasury 

foresees an increase in its presence in Afghanistan where there is currently one OTA 

resident advisor.

"It's an appreciation that needs to be made public: The best technical 

assistance I received was from the U.S. Treasury."

- Former Afghan Minister of Finance Ashraf Ghani

“The best-qualified staff were those who had been seconded or

recruited by the U.S. Treasury...They understood the need to focus 

on human technical parameters that made projects successful, as well 

as good policies.” 

– Former Iraqi Finance Minister Ali A. Allawi
 2 

 Program Evaluation and Management. OTA undertook three initiatives in 2008 to evaluate 

and improve its own program management and delivery. The first involved an evaluation of 

OTA’s project progress and assessment process, which led to a new system for measuring 

individual project “traction” and overall program progress. This approach was selected as a 

Case Study in Program Management and OTA presented it at the annual Excellence in 

Government Conference. OTA also conducted a broad survey of its finance ministry and 

central bank clients to collect information on their satisfaction (or dissatisfaction) with 

Treasury technical assistance. The results indicated a generally high level of satisfaction and 

provided some useful suggestions for improvement. Finally, OTA asked the Department of 

the Treasury of the Government of Australia to carry out a professional peer review of its 

program. Over a period of eight months Australian financial technical assistance 

professionals reviewed OTA projects in six countries. The final report provided both high 

praise and useful suggestions for further improvement.

 

In its effort to support countries dealing with the financial crisis or facing other challenges, 

Treasury’s assistance program draws upon experience accumulated over the past twenty years. 

OTA began working in Eastern Europe and the former Soviet Union with the fall of communism.

There it helped countries transition to market economies and built a reputation for rapid

response, flexibility, and results. The Asian financial crisis of 1997, and concerns about its global 

impact, moved Congress to pass an amendment to the Foreign Assistance Act, section 129, 

which created the Treasury International Affairs Technical Assistance program (TIATA) and 

gave OTA a mandate to assist developing and transition countries worldwide. Since that time, 

OTA has helped finance ministries, central banks, and financial law enforcement agencies in 

their efforts to develop government bond markets, strengthen revenue collection, improve budget

systems, strengthen oversight of financial institutions, and reduce the financial sector’s 

vulnerability to financial crimes and terrorist financing. 

In addition to its traditional work in developing and transition countries, OTA has been a first 

responder in countries emerging from conflict. Treasury sent technical advisors into Bosnia just 

after the 1995 Dayton Peace Accords were signed. Advisors deployed to Kosovo in 1999 with 

the signing of UN Security Council Resolution 1244. In 2002 the first U.S. Government civilian 

technical assistance advisor in Afghanistan was an OTA advisor. In 2003, a team of OTA 

advisors followed U.S. troops into Baghdad. 

During FY 2008, OTA conducted 120 projects in 58 countries throughout Latin America, Africa, 

Asia, the Middle East, Central and Eastern Europe, and the Former Soviet Union. The main 

body of this report provides detailed information on specific projects, on the allocation of OTA 

resources (by region and by assistance area), on the process by which OTA identifies and 

delivers projects, and a discussion of OTA’s funding picture. 

The importance of sound public financial management has seldom been as clear and urgent as it 

is today. For all governments, effective oversight of public monies -- whether domestic revenues 

or development assistance -- is a concern of the highest order. 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.” 
 3 

2008 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 separate and unique from other executive activities – 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 funds (Treasury International Affairs Technical Assistance – TIATA - funds) “for 

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.” In this way, the OTA mandate was extended world wide.

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 criminal activities that provided financial support for international terrorism.

Though its mission has remained fixed, 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 a 

process for paying Iraqi civilian employees, and getting cash into circulation. 

Program Management and Funding

During FY 2008, OTA conducted projects in 120 projects in 58 countries (including those 

carried out under regional initiatives) representing $48.6 million in costs. Of this total, 60

projects representing $21.5 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 provide additional data on OTA’s sources 

and uses of funding in FY 2008. 

OTA completed 29 TIATA-funded projects and initiated seventeen projects in 2008. TIATAfunded projects were initiated in Latin America (Colombia, Costa Rica, Ecuador, Haiti, 
 4 

Honduras, and a Regional Small and Medium-Size Enterprise project), Africa (Mozambique, 

Niger and Zambia), Asia (Indonesia, Vietnam, and an Economic Crimes Regional project), and 

the Near East and North Africa (Algeria and Pakistan).

As the chart below 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 accelerated pace in recent years as 

the countries in these regions have become more self-sufficient 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 from other entities. 

OTA also receives funding through occasional supplemental appropriations. This funding, which 

has been used for countries such as Afghanistan, Haiti, Iraq, and Liberia, is available only as 

exceptional needs arise and is therefore not included in the chart below which focuses on “core” 

funding. Table B – provides Fiscal Year 2008 Non-TIATA Sources of Funding. 

Department of Treasury Office of Technical Assistance

Changes in Funding FY1999 - FY2008

($ in millions)

8.20

11.25

13.61

11.29

9.25 8.20 6.76 5.13 4.23 2.64

13.00

9.50

9.60

10.65

10.07

3.55

3.85 7.51

5.20

3.12

1.50 1.50

6.00

6.39 10.73

18.89

18.85

19.80

19.80

20.23

4.12

1.86

5.58

3.96

10.97

7.14

6.47

8.18

7.05

9.17

0

10

20

30

40

50

60

70

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

USAID, State, DOD, MCC

TIATA

FSA

SEED

$24.11

$26.82

$34.79

$32.29

$41.02

$37.78

$35.93

$40.62

$36.28

$35.17

Among OTA’s five core assistance areas, the breakdown in terms of project funding in 2008 was 

as follows: Economic Crimes 30%; Debt 21%; Budget 13%; Revenue 17%; and 

Banking/Financial Institutions 19%. The chart below shows the allocation of OTA project 

funding by team.
 5 

In addition to their individual merit, OTA projects and initiatives also support broader strategic 

objectives. Points of reference for strategic objectives are the Treasury Department’s 

international economic, financial and anti-money laundering/countering the financing of 

terrorism (AML/CFT) policy priorities, as well as broader USG foreign policy and national 

security goals. To a substantial degree, OTA’s activities on the ground reflect an effort to give 

special attention to the following policy priorities:

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

 Support for countries that are U.S. foreign policy or national security priorities. 

 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 SubSaharan Africa and parts of Latin America, the Caribbean and Asia.

 Collaboration with other assistance providers, such as MCC, USAID, State/INL in an effort 

to leverage complementary efforts. 

OTA makes every effort to respond to requests that have merit in terms of need for assistance 

and commitment to reform. This is true even if a country is not at the top of the U.S. foreign 

policy agenda at the moment. A judicious investment today in a country that is weak and out of 

the foreign policy spotlight but trying to implement sound policies may help prevent that country 

from entering the spotlight tomorrow as a troubled state requiring major investments.

2008 TIATA Budget

Allocation By Team

Banking, 

19%

Debt, 21%

Revenue,

17%

Economic Crimes, 

30%

Budget, 

13%
 6 

$6.9

$2.0

$6.6

$4.1

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

Sub-Saharan

Africa

Asia Latin

America/Carribean

Middle East/North

Africa

FY 2008 Budget Allocation by Region

(dollars in millions)

OTA Business Model

TA projects that produce significant beneficial and sustained change are based on a thorough and 

accurate needs assessment with which the counterpart agrees. To ensure success, every OTA 

project begins with an on-the-ground assessment mission carried out by subject matter experts. 

The assessment results are shared with potential counterpart management. 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 irrelevant. As a rule, the most noteworthy projects have brought about change at the 

systems level (i.e. beyond changes in processes or procedures). Yet projects with more modest 

goals are often worthwhile as well. A step toward reform may provide momentum that carries 

the country on to wider efforts. For instance, building specific country capacity in financial crime 

detection can be critical in establishing and building an effective regional network. Following 

assessment, OTA goes through an internal selection process through which projects with the 

most promise for capacity building and reform are ranked. An estimate of anticipated funding 

determines which projects will be supported, and which will be deferred unless additional 

resources are identified. 

FY 2008 TIATA funds were used to support projects selected according to the following 

process. OTA prepared an initial internal FY 2008 financial plan comprised of summary 

information on projects that originated from a variety of sources, including foreign governments, 

U.S. embassies, USAID missions, assessment missions conducted by OTA advisors, and 
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bilateral policy discussions. Proposals were compiled, vetted, and submitted by the managers of 

each of OTA’s five core disciplines for policy-level review. Special consideration was given to 

projects already begun that had demonstrated substantial results. (The FY 2008 preliminary 

financial plan contained nearly 94 proposed projects with an estimated cost of $40 million, an 

amount well above the resources available.)

Treasury reached out to other USG agencies and in some cases found partners that were both 

committed to project objectives and willing to provide co-financing in selected countries. 

OTA then conducted an internal selection process to identify projects with the greatest potential 

for accomplishing results in capacity building and policy reform. These projects were selected 

for funding, while the rest, though meriting serious consideration, were set aside due to a lack of 

resources. OTA was able to fund 64% of the number of proposed projects. The final results of 

the project selection process are displayed in Table A, Fiscal Year 2008 Budget Execution Plan. 

Sixty separate projects (compared with 72 in FY 2007) 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.

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, Financial Enforcement assessment missions, and cross-discipline 

regional missions.

The final version of the FY 2008 Budget Execution Plan employs $23.9 million of TIATA funds.

OTA Delivery Model

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

effectiveness. One is the fact that we are part of the Treasury Department. This establishes an 

immediate institutional “kinship” with ministries of finance, central banks, revenue 

administrations, and other financial institutions around the world. This institutional association, 

coupled with OTA’s exclusive focus on financial TA, facilitates the creation of a working 

relationship of trust between the advisor and the counterpart. 

The second critical element has been the dedicated TIATA account established under the Foreign 

Assistance Act and funded by annual appropriations acts.. This funding channel, while very 

small as a share of total USG funding for economic governance TA, has allowed Treasury to 

have a reasonable degree of confidence that some funding will be available to develop a core 

program addressing specialized financial sector needs and to support the Secretary’s 

international policy priorities. 

OTA carries out technical assistance projects based on three basic designs: residential; 

intermittent; and post-conflict. All of the projects require advisors to carry out their work in the 

country where the project is located. With the exception of rare study tours to other countries in 

order to get first-hand experience of exemplary practice, OTA does not work with counterparts 

outside of their country. We consider this to be critical to our success. The small administrative 
 8 

staff in Washington, D.C. is focused on supporting projects in the field (travel, contracting, pay, 

personnel administration, project oversight and management review, finance, program 

representation and response, and executive oversight). 

Residential Projects

Residential projects are based on an in-country assessment as described above. Once a residential 

project is selected for funding, a terms of reference (TOR) is agreed upon and signed. The TOR 

describes the broad goals of the project and represents a bilateral agreement between the U.S. 

Treasury and a country institution (typically a Ministry of Finance, Central Bank, or Tax 

Administration). Experience verifies the special nature of this relationship in the eyes of 

counterpart countries – the credibility and widely recognized prominence of the U.S. Treasury 

are particularly valued, and the status of counterpart managers working with the project is openly 

viewed as special and desirable.

Within a short period (normally six to eight weeks) a workplan is developed and agreed upon 

between the resident 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 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 offices and officials.

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

equipment and a local national program assistant. Its projects transfer no funds or capital to the 

counterpart country. The institution with which the TOR is signed 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 this point, and has ended projects where the TOR 

was not kept. We are convinced that working side-by-side in the same workplace as 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. The counterpart relationship 

with an OTA advisor is qualitatively different from that formed with international financial 

institution (IFI) representatives (e.g. World Bank, IMF) who clearly have their primary 

relationships and performance concerns with their parent organizations. 

Completing objectives of a residential project typically requires two to four years. Intermittent 

advisors are often called upon to provide specialized expertise for technical aspects residential 

projects. Occasionally new or different problems will present themselves as opportunities for a 

new project, and longer engagements in a country often contributes to sustained effort of the 

counterpart government. 
 9 

Intermittent Projects

Intermittent projects are similar in many ways to residential projects. Both have assessment 

missions, terms of reference, workplans, and reporting requirements. Intermittent projects 

compete with all other projects in the annual budgeting process. The “intermittent” quality of the 

project lies in the timing and nature of the advisor(s) assignment. An advisor, or group of 

advisors, may typically spend periods of two to three weeks at a time over the period of a year or 

two working with counterparts. Between these direct engagements the counterparts are usually 

expected to carry out planned activities that are directed toward the objectives stated in the 

workplan. Contact between intermittent advisors and counterparts by email, phone, or other 

means are common and often frequent. Though the counterpart institution often provides 

working space, and OTA often hires a permanent, full-time program assistant in country to 

support a project, such conditions are spelled out in the project TOR and are not always specified 

obligatory as they are in the case of residential projects.

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

in the mutual understanding between the counterpart and the advisor of the nature of the problem 

to be solved, and agreement on what are likely to be the best and most practical solutions to that 

problem. A project might, for instance, use one 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.

On rare occasions OTA will provide advisors for engagements to requesting countries where the 

scope of assistance needed is narrow, the need is specific, and the time required short. There are 

also occasions when training is provided to a country or a region outside of the project

framework. While this is a common delivery model for many technical assistance providers, 

OTA does not classify such activities as projects. Though conferences, colloquia, and training 

sessions do have value in providing information and professional interaction, they lie outside of 

the definition OTA uses for technical assistance.

Post-conflict Engagements

OTA has engaged frequently and widely over the years in post-conflict activities. What sets 

these engagements apart, aside from the physical danger and poor working/living conditions, is 

the absence of bilateral terms of reference. Post-conflict engagements are also usually funded by 

Congressional budget supplements. Treasury is called on to assist with an action agenda that 

could be specified by the U.S. military presence, a special U.S.G. authority, a State Department 

mission, or under the sponsorship of an international financial institution. In such cases the 

project work and objectives are specified by the requesting institution. 

On occasion, what begins as a post-conflict engagement becomes, in time, a financial technical 

assistance project. Such was the case in Bosnia, Kosovo, and Afghanistan. At the time of the 

submission of this report OTA has fourteen budget and banking advisors in Iraq. OTA sent a 

team that followed troops into Baghdad, and operated under the direction of the Coalition 

Provisional Authority. Since the establishment of the Iraqi Interim Government advisors have 

worked under the direction of the Treasury Attaché in close coordination with DoD and the 

Department of State.
 10 

Iraq

In 2008, OTA activities in Iraq evolved to a greater degree than in any year since 2003 when 

coalition forces moved into Iraq. As part of the broader civilian surge, OTA more than doubled 

its advisor presence. Currently, OTA has 12 resident advisors in Iraq, which is more than at any 

time since 2003 when OTA deployed 20 advisors to work as part of the Coalition Provisional 

Authority (CPA). In addition to a larger advisor presence, 2008 saw important changes of the 

organization and focus of our assistance effort. While OTA continues to work with the Finance 

Ministry and Central Bank to strengthen capacity in public financial management, banking sector 

reform, and monetary policy, beginning in 2008 there was an intensive focus on strengthening 

the Iraqi government’s capacity to implement the national budget. This was driven in part by the 

escalation in oil prices, leading to greater revenues, and in part by the Government of Iraq’s 

difficulties to execute the budget effectively (in particular the capital budget), and to strengthen 

the delivery of public services. 

The U.S., for its part, saw a need and an opportunity to re-organize the delivery of assistance to 

support budget execution. U.S. Treasury advisors and military personnel partnered to create the 

Public Financial Management Assistance Group (PFMAG). A growing number of Treasury 

advisors (some with military as well as financial management background) brought additional 

subject-matter expertise to the effort, while U.S. military personnel (some with financial 

management as well as military experience) facilitated access to Iraqi ministries in Baghdad, to

sub-national government entities, and to Provincial Reconstruction Teams across the country. 

This innovative civilian-military structure aims, in sum, to strengthen Iraq’s budget formulation 

and execution processes, broaden the budgetary framework to spending ministries, provinces, 

and municipalities, and to integrate coalition public finance technical assistance across all levels 

of the Iraqi Government. Over the course of 2008 and into 2009, Iraqi institutions have 

improved their budget execution performance, though significant challenges remain, especially 

in provinces where security and “connectivity” with the central government are problems. With 

the drop in oil prices, OTA advisors have assisted their Iraqi counterparts in dealing with the 

impact of declining revenues. 

In addition to work in the budget area, OTA banking advisors assisted with the restructuring of the 

two largest state-owned banks, expanded the network of electronic payments, assisted with security 

upgrades to the Central Bank, and continued to work closely with Iraq’s monetary authorities in a 

largely successful effort to control inflationary pressures. This latter effort – largely unnoticed -- has 

been one of the most important aspects of maintaining a stable macroeconomic framework in Iraq, a 

necessary condition for sustained economic growth. 

2008 Program Evaluation

Evaluation is the process by which OTA learns from its past about what is required to improve 

future performance. Anecdotal feedback over the years consistently confirmed that OTA was 

superior among providers of technical assistance, but did not provide the objective and 

systematic evidence that encourages analysis, self-critique, and change. In 2008 OTA began a 

thorough and comprehensive review of processes to evaluate its program. The effort comprised 

three separate and rigorous initiatives: review and strengthening of its project progress and 

assessment process; initiating an outside professional peer review; and conducting a broad client 
 11 

survey designed to systematically collect information on “customer satisfaction.” 

OTA has worked systematically for the past five years to improve collection and use of 

measurable performance information. Early efforts moved the organization from an activities 

focus to an objectives and results focus. Finding performance indicators that were relevant, 

credible to organization members, and rigorous was more difficult. In 2008 OTA designed and 

implemented a new measurement system that calls for 100% project reporting and participation 

at every management level from execution to executive review. So innovative was this approach 

that it was one of three Case Studies in Program Management selected to be presented at the 

2008 annual Excellence in Government Conference. 

The Department of the Treasury of the Government of Australia cooperated with OTA in a 

professional peer review of the OTA program. The review both assessed OTA program 

effectiveness; and provided a template for peer review that could be used for program evaluation 

by others. Two senior Australian Treasury employees with extensive experience in financial 

technical assistance reviewed on-going and past projects in six different countries (Ethiopia, 

Zambia, Honduras, Paraguay, Romania, and Kosovo) between February and June 2008. The 

countries were selected to provide a cross-section of OTA engagement, and over twenty different 

projects were represented in the six-country sample. The evaluation of OTA’s performance was 

made against broad criteria that have emerged over the past few years in the development 

literature and in other reviews of the performance of technical assistance provided by 

development agencies. The report identified several points which present opportunities for 

improvement, particularly by increasing involvement for longer terms, and providing a broader 

range of OTA specialties in the same country. Many of the recommendations pointed to possible 

organization effectiveness that simply requires a higher level of funding. In other cases there are 

issues that require thorough review, discussion, and hard management decisions. Overall OTA 

was gratified, enlightened, and energized by the results of the report.

In order to be more rigorous in collecting and reporting customer satisfaction, OTA provided a 

professionally-designed survey form to advisors and host ministries. The survey was translated 

into local languages for cases where English was not comfortable for respondents. We sought 

thoughtful and candid responses from knowledgeable sources. At the beginning we identified 

sixty potential respondents. Though we continue to use the survey to collect information, by the 

cutoff date for this report OTA had a response rate over 50%, quite high for voluntary returns. 

The review finds that OTA advisors are very experienced and skilled 

professionals who are working with hosts building capacity and in many 

cases producing sustainable outcomes. They are mostly working in critical 

areas and have substantial influence on policy design and implementation 

within the narrow functional areas within which they are engaged...In 

contrast to some other development partners, OTA offers practitioners 

who are nested within host agencies to provide long-term technical 

support in designing and implementing financial management reforms. It 

is a small and flexible organisation and can respond quickly to 

developments. 

- from the 2008 Peer Review by Australian Treasury
 12 

After normalizing the response to accommodate a scale of 1-5 (1 low – 5 high), we found that 

the average response was 4.5. This number seems surprisingly high when one considers the 

range and considerable challenges that projects face around the globe. At the same time, the 

highly favorable response confirms the high praise OTA has received anecdotally over the years. 

One open-ended survey item asked what changes the respondent would recommend in OTA 

projects. Of the fifteen specific suggestions, all had to do with increasing the level and range of 

OTA assistance, much as the Australian Treasury report had recommended. 

Regional and Country Projects

Though most of its projects respond to single country requests, OTA is also prepared to act on a 

wider basis where problems requires regional solutions.

Latin America Small Business Lending Initiative (LASBLI)

In the United States, one in two people or 50 percent of the American workforce is 

employed by a small business. With all its high-profile multi-national companies, the 

backbone of the U.S. economy remains small business. In Latin America and other 

regions of the developing world, small and medium sized enterprises represent engines of 

economic growth that offer opportunities to significantly expand employment and, 

thereby, lift people out of poverty. At present, small and medium-sized enterprises 

(SMEs) are financed either by microfinance institutions or by friends and family 

members. Each of these market participants is limited in the volume of financial 

resources that they can make available. The result is that SMEs have access only to 

operating capital (i.e. funds needed to make payroll and purchase inputs), not capital 

investments. Banks need to play a greater role in financing in order to make a sufficient 

volume of financial resources available. However, banks in Latin America have, for a 

variety of reasons, historically focused lending on large borrowers (large, existing 

enterprises and other parties considered “good credit risks”).

Although in general the banking sectors in most Latin American countries are presently 

in a relatively developed stage, the emphasis given to small business lending varies 

considerably from country to country, mainly owing to shortcomings in the legal, 

regulatory, and financial infrastructure framework under which financial institutions 

operate. Often, banking legislation is not well harmonized with other laws, such as those 

relating to ownership, and registry of moveable assets and real estate. Other issues 

include access to financial services, which goes beyond access to credit per se, the quality 

of credit information, the appraisal and valuation of collateral, and the enforcement of 

creditors’ rights

In 2007, the U.S. Treasury launched the Latin America Small Business Lending Initiative 

(LASBLI). LASBLI is supported by the Multilateral Investment Fund. This fund, 

managed by the Inter-American Development Bank, has a non-reimbursable $20.5 

million line of credit to promote small business lending. The credit lines are supervised 

by financial intermediaries in Latin America and the Caribbean (LAC). The small 

lending institutions themselves comprise commercial banks, non-bank financial 
 13 

institutions, finance companies, and select micro-finance institutions that will target 

small, profitable firms with growth potential. The overall objective of LASBLI is to 

increase the number of loans made to small businesses and micro-finance institutions. 

The role of OTA has been to assess and make recommended modifications to existing 

bank regulatory regimes with the goal of enabling banks to play a more active role in 

SME financing.

OTA is now launching the second phase of the project which will develop and implement 

a structured technical assistance engagement anchored around a Resident Banking 

Advisor and specialized intermittent assistance. Based on the experience of the Phase I 

LASBLI assessment missions, Guatemala has been selected as the advisor’s post for 

Phase II implementation. 

Middle East North Africa (MENA)

An OTA Debt Team regional representative based in Abu Dhabi travels throughout the 

MENA region advising national authorities. Within the past year, as world economic 

events have underlined the importance of UAE and its emirates, complex risk 

management issues have arisen stemming from the country’s rapid development, federal 

system and weak institutional development. Rapid growth in sovereign debt without 

sufficient monitoring or coordination at the central level, lack of financial instruments, 

institutional investors and other fundamentals complicate fiscal and monetary policy 

implementation and accentuate risk. To begin to mitigate these issues the advisor has 

worked with the federal authorities and the individual emirates to improve debt 

management and coordination among the emirates. In this regard, he is advising Dubai 

Department of Finance on creation of a debt management function. He has also 

successfully encouraged use of the debt capital markets, including advice to Abu Dhabi 

on its first ratings and debut Eurobond issuance, Dubai on its first domestic currency 

straight issuance, a five-year medium term note, and UAE Ministry of Finance of Finance 

as it develops a domestic benchmark program. This exposure to the capital markets is 

having a positive effect in that individual emirate policymakers are conscious of market 

perception and risk premiums associated with their actions. In addition, the advisor is 

responsible for the eventual establishment of a regional bond market association as a 

permanent contributor to sound policy.

Projects in single countries may involve more than one OTA specialty area, and take place over 

time. Afghanistan provides a good example. Earlier in this report we noted that an OTA advisor 

began service in Kabul in 2002 to help in setting up basic government budget tracking systems. 

Other teams have followed since then. Addressing the many immediate challenges in 

Afghanistan has been and will continue to be among the highest U.S. priorities. The medium to 

long-term future of the country, however, will depend on building strong and sustainable 

institutional infrastructure. Most public attention given to Afghanistan focuses on military 

action, but efforts to bring about broad shifts in the country’s economic base, and political 

developments within the government are the actions that will build long-term sustainability. 

OTA’s financial technical assistance is critical to this effort. 
 14 

Afghanistan

When OTA’s Debt Team first engaged in Afghanistan in August, 2003, problems facing 

the country included reconciling past sovereign debt, improving the cash management 

process of the country, and reporting debt data in both a timely and accurate way. 

Beginning with that engagement Debt Team Resident Advisors have provided debt 

management training and advice to the Ministry of Finance’s Debt Management Unit. 

The Afghans successfully reconciled and restructured old sovereign debt including Paris 

Club and bilateral debt. Technical assistance has also supported improved cash 

management processes, and the implementation of an accurate, timely and consistent 

reporting cycle for the country’s debt data. A major goal was reached during FY 2008 

with the first publication of a quarterly debt report by the Debt Management Unit. The 

report was for the 4th quarter of Afghan fiscal year 1386 (ended March 19, 2008) and 

included loan disbursements, repayments, service charge capitalization, accrual of service 

charges (interest) and debt stock at the end of the reporting period. The Ministry of 

Finance intends to publish the debt report for Afghan fiscal year 1387 by the end of 

August, 2008, and to regularly publish quarterly debt reports within 90 days of the end of 

each quarter. This is a significant milestone because continuous, timely publication of 

debt data is one of several benchmarks required by the IMF and World Bank for 

Afghanistan to be granted Completion Point status under the Highly Indebted Poor 

Country (HIPC) initiative. 

To provide assistance in the short term and to build a solid and sustainable base for longterm stability, OTA’s Economic Crimes Team has directed its efforts toward building 

institutional capacity to prevent and fight economic crime, remove incentives for 

corruption, build personal and systems integrity, and discourage the conditions that foster 

terrorism.

OTA’s economic crimes team’s efforts have included developing a financial intelligence 

unit staffed and trained to develop, populate, and access a database that detects and 

regularly reports on large cash transactions and suspicious activities, and strengthening 

the regulatory regime for preventing money laundering and terrorist financing in order for 

the regime to conform to international norms. This included strengthening compliance 

abilities of those who report potentially suspicious activity: bankers and other formal 

financial sectors institutions, hawaladars, real-estate dealers, jewelry and precious metals 

dealers, and lawyers.

Treasury efforts have resulted in greater regional and international information exchange 

and cooperation such as: membership in Asia Pacific Group on Money Laundering; 

observership in Eurasian Group on Money Laundering; observership requested in MENA 

FATF (the regional body for the Middle East); MOU’s signed with a dozen FIUs, 

including, SOCA (UK FIU), Russia, and Japan; MOU requested for information sharing 

with FinCEN; and Egmont membership application submitted with the U.S. and Malaysia 

as sponsors.

Yet another model of OTA team applications occurs when multiple teams pursue separate 

projects in the same country simultaneously. This was a common OTA model during the early 

years in post-communist countries. OTA currently has projects in Paraguay run by the budget, 
 15 

debt, banking, and financial crimes teams. In addition, the financial crimes team leads a project 

that is backed by the MCC. 

Paraguay:

 While the Government of Paraguay’s budget formulation, execution and evaluation 

systems have successfully constrained spending within revenue limits, they had not lead 

to a budget that was an effective strategic planning or execution tool. Specific areas 

needing improvement included: a budget formulation process that was not closely linked 

to Ministry plans or activities, budgets produced by the Legislature that exceeded likely 

revenue collections, cash management processes that hindered flexibility in budget 

execution, and a lack of decision making information produced by the budget evaluation 

process. 

Historically the Budget Department has consolidated budget requests and implemented 

top-down directives. It has not analyzed the programmatic implications of the proposed 

budget nor its relationship to government priorities. Changing this approach requires both 

training of budget analysts and the introduction of new processes that introduce 

systematic analysis of government programs into the budget formulation process.

To address these shortcomings, the Budget Team Project conducted a strategic planning 

session for senior budget department staff to identify progress made towards strategic 

goals in recent years and to identify next steps for the upcoming year. It worked with 

budget staff to analyze “natural growth” estimates in the university system and to develop 

capacity in identifying cost drivers and analyzing growth. It also initiated a process of 

periodic, in-depth budget reviews with Finance Ministry staff. Teams consisting of the 

Resident Advisor and three to five budget analysts identified key government programs 

and analyzed them in regards to their consistency with government priorities, historic 

budget trends, multi-year budget impacts, performance evaluation data and programmatic 

effectiveness.

The in-depth budget reviews included analyses of the Ministry of Justice and Work’s job 

training and youth shelter programs, the Secretary of Social Action’s conditional cash 

transfer and affordable housing programs, the National University of Asuncion, the 

Health Ministry, the Agriculture Ministry, Interior Ministry, and Foreign Relations 

(embassies and consulates).

The in-depth program reviews have allowed for on the job training of budget staff and 

introduction of common budget analysis techniques, such as identification of cost drivers 

and definition of base budgets. The program reviews continued after submission of the 

2009 budget, with four new work groups in ministries that have not yet been analyzed.

To increase transparency of budgetary information available for citizens, legislators and 

policy makers, the budget website was improved. The improvements included providing 

budget information by entity, function, state, and budget results. 

The Single Treasury Account (TSA) working group is coordinating the necessary steps to 

prepare for implementation of a TSA in January 2010. The TSA is a critically important 

tool for budget execution and cash management. Once implemented, it will increase the 

efficiency of the government’s financial operations, improve transparency of Treasury 

activities and permit the use of idle cash balances. The Finance Ministry’s Legal 
 16 

Department began analyzing the revenues to be included within the TSA to identify any 

legal obstacles to their inclusion. The TSA working group agreed to the development of 

an interface between the tax and treasury information systems to facilitate information 

flows between the departments. This interface will shorten a process that currently takes 

more than a month and allow it to be completed in a matter of days. 

 Paraguay lacked an updated legal framework for issuing government debt; its data 

collection and recording systems were inadequate; cash management was weak; it did not 

have an international credit rating, a debt-sustainability model, nor did it have adequate 

organization in its debt office organization. OTA’s Debt Team began a project in 2004 

that has supported the Paraguayan Treasury and Central Bank of Paraguay in revisions to 

the public debt legal framework; upgrades to the debt data collection system; upgrades to 

the book-entry payment system; training for cash management, and reserve and 

investment management; obtaining international credit ratings; development of a debt 

sustainability model; debt office reorganization; the first non-compulsive issuance of 

Treasury obligations in over a decade (with regular market-based auctions after that); 

development of debt service schedules; and publication of debt issuance calendars. A 

major goal was reached in FY 2008 following GDIM training to Central Bank and 

Ministry of Finance directors for risk management and debt sustainability. This training 

contributed to improved operations and policy coordination between the two institutions 

that resulted in the development of a National Debt Strategy that was reviewed by the 

incoming Minister of Finance in August, 2008. 

 One of the critical issues for effective governance is maintaining public confidence and 

trust in the financial system. Recent economic events in the U.S. and around the world 

underline the critical role that banks play in providing assurance to their depositors that 

savings are safe. In late 2006, the OTA resident advisor at the Central Bank of Paraguay 

set up within the bank a working group on financial sector stability to address the issue of 

analyzing and reporting the state of financial stability in the country.

The project helps ensure that the central bank takes a comprehensive view that not only 

considers the traditional focus on monitoring individual banks carried out by the 

Superintendence of Banks, but also looks at broader factors that will further buttress 

sound sector performance-- such as availability of liquidity facilities to banks and 

maintenance of appropriate levels of indebtedness in the corporate and retail sectors

In 2007 the group produced a draft of Paraguay’s first-ever Financial Stability Report. In 

2008 the process was institutionalized within the Central Bank in the form of a 

Committee on Financial Stability. One of the on-going responsibilities of the committee 

will be overseeing the twice-yearly publication of the report.

“The level of trust that I developed with ...the OTA-US Treasury 

organization was something that was instrumental during my tenure 

as head of the Central Bank of Paraguay. I was able to leverage on 

their collective expertise on several matters, ranging from: Monetary 

Policy issues, inflation measurements, reserve management, Central 

Bank Bill issuance, re-capitalization of Central Bank matters, 

amongst others. The trust factor is key between local government 

officials and OTA advisors.”

- Monica Perez dos Santos, President, Central Bank of Paraguay, 

from May 2005 to March 2007
 17 

 One of the less-apparent mechanisms for laundering money occurs in the insurance sector 

– for instance, purchasing insurance vehicles with proceeds of criminal activity and 

cashing them in for “clean” payouts.

The Paraguay project for insurance was requested by the Superintendent of Insurance in 

the Central Bank of Paraguay and provided for technical assistance from OTA to 

establish compliance with AML standards in the insurance sector. The project lasted one 

year and provided assistance that resulted in the Superintendent formulating, testing and 

adopting procedures to examine companies for compliance with regulations designed to 

deter money laundering. This project also provided training to government regulators for 

enforcement of AML compliance through the examination process and to the insurance 

industry for regulatory requirements. The project concluded with a highly-praised 

regional AML conference, opened by remarks by the U.S. Ambassador. There were 

more than 250 registrants including representatives from eleven countries. The 

conference fostered excellent government relations that resulted in Paraguay requesting 

additional enforcement assistance relating to insurance, and an invitation from Panama 

for OTA to participate in a large AML/CFT conference in August 2008.

 MCC program goals in Paraguay called for three investigative units being tasked with 

specific objectives. The three investigative units within the Ministry of Finance were 

tasked with meeting objectives consisting of the number of cases presented correctly to 

the public prosecutor's office, the quantity of merchandise/taxes collected/seized, and the 

number of complaints of corruption by public officials received, investigated and 

presented to the public ministries office.

With OTA's assistance, three investigative units were formed: a tax unit, a customs unit 

and an internal affairs unit. Each team is comprised of a minimum of 15 officers. All 

were equipped with the latest in investigative gear, cameras, binoculars, computers, etc, 

and the latest version of I2, an investigative link analysis software package. The special 

agent basic criminal/financial investigative techniques course of the Federal Law 

Enforcement training center was obtained and presented to all three units. All of the units

were organized by presidential decree giving them the maximum authority allowed by 

Paraguayan law. All met and or exceeded their program goals.
 18 

2008 COUNTRY-SPECIFIC HIGHLIGHTS

Africa

African Development Bank – Integrity and Anti-Corruption Project

 Pervasive corruption undermines economic development throughout Africa. Working in 

partnership with the African Development Bank, this project builds capacity to combat 

fraud and corruption. The Bank requested assistance from the US Treasury to implement 

a two part anti-corruption and fraud strategy in the 53 African states to which the bank 

provides loans and grants. Phase One (2006-2008), now near completion, built

investigative and training competencies within the Bank, specifically within the Bank’s 

new Integrity and Anti-Corruption Division (IACD). The second phase extends the 

program’s impact outside the Bank, to regional member countries, and is scheduled to be 

completed by May, 2009. 

Since the beginning of the project, IACD has addressed a majority of the substantive 

complaints received. The President of the Bank took action on most of the reports which 

resulted in disciplinary action (dismissal) or other sanction. Additional achievements 

include establishing an office with state-of-the-art investigative software and equipment, 

and a forensic laboratory; standing up the investigative operation with standard operating 

procedures based on UN and sister multi-national bank best practices; providing due

process guarantees consistent with administrative proceeding and confidentiality 

safeguards; managing dedicated hotline services that address complaints which are 

immediately registered in a case management system; implementing a whistle-blower 

policy that ensures full protection against retaliation, and developing training and 

awareness programs for borrowing countries and the Bank’s field offices.

The work accomplished so far has prepared the Bank to fight corruption, fraud and 

AML/CFT within its own operations. The project will soon begin to realize a “multiplier 

effect” as growing expertise and IACD training in the Bank’s Field Offices and Regional 

Member Countries shape financial management, and anti-corruption and anti-money 

laundering practices throughout Africa for years to come.

Algeria:

 Facing a major reorganization in its revenue collection function, and with little 

experience in such an effort or the contracting and project management skills required, 

the Directorate Générale des Impôts (DGI) of Algeria requested assistance in the $35 

million effort to move from paper-based to electronic taxpayer records as part of a larger 

DGI modernization. In preparation for what will be an extensive and ambitious reorganization and expansion, an OTA advisor has been assigned to help: (1) negotiate with 

the successful bidder on contractual terms; and (2) assist senior and mid-level staff 

enhance their program management skills through consultations, training, and provision 
 19 

of written guidance. The advisor is also providing advice on staffing needs and software 

testing standards. DGI staff has been trained in project management in order to carry out 

their oversight of the private contractors. Another advisor provided consultation on 

public relations, and conducted workshops on media interview skills and presentation 

skills. 

2008 has been a year devoted to orientation and preparation for the coming changes. DGI 

staff has already been trained in project management in order to carry out oversight of the 

private contractors. Training in public relations has taken place.

Ghana

 Ghana made a strong commitment to the development of a fiscal decentralized 

framework within its multi-donor budget support program. The Ghana Poverty 

Reduction Strategy, as well as the Ministry of Public Sector Reform’s Work Program to 

Coordinate the Implementation of Public Sector Reforms, highlights decentralization and 

capacity building. 

A critical element of the fiscal decentralization involved establishment of an 

intergovernmental fiscal decentralization framework. The Budget Team Project in Ghana 

focused sustained effort on assisting in this initiative. The Ghanaian Constitution directs 

that local governments be independent, yet the central government still controls the 

majority of district financial resources and performs many functions that should be 

moved to the district level. This posed an obstacle to the success of the constitutionally 

directed reform. The Budget Team Project developed a strategy and implementation plan 

that laid out the vision for fiscal decentralization identified and harmonized the fiscal 

decentralization reform efforts currently underway; presented the gaps between the 

current situation and the vision for the future; and developed strategies and priorities for 

moving forward. The framework was approved by the Cabinet in May 2008.

A central element of the capacity building of the Public Sector Reforms was cash 

management. A Cash Management Implementation Committee was formed to explore 

different ways to meet cash management objectives. The objectives are to safeguard cash, 

minimize the volume of idle balances and number of accounts, match the timing of cash 

inflows and cash outflows, increase the certainty that payments are made and receipts are 

deposited on time, streamline the different flow of funds, and increase the predictability 

of the release of funds and reduce the cost of borrowing. The Committee is reviewing 

best practices, developing a vision for the future, identify the gaps and developing an 

implementation plan. The Budget Team Project will address the regulatory environment, 

organization and business processes.

 When OTA’s Debt Team first went to Ghana in 2002, the challenges that faced the 

country were great: the infrastructure of the Ministry of Finance and Economic Planning 

(MOFEP) and the Bank of Ghana (BoG) were weak, cash forecasting and debt 

management capacity were low, and the country had not yet opened its long-term debt 

markets to both national and foreign investors. Since that time the Debt Team project has 
 20 

helped MOFEP and the BoG to improve their institutional infrastructure, cash forecasting 

and debt management capabilities, and open their debt markets to both national and 

foreign investors by issuing long-term fixed-rate benchmark securities. In the fall of 2007 

the Republic of Ghana became the first post-HIPC country to enter the international bond 

markets. The 10-year $750 million benchmark issue was issued to finance energy and 

transportation infrastructure, and was the first sub-Saharan sovereign bond issued in the 

last 30 years. The sovereign bond provided a critical benchmark instrument that 

subsequently enabled Ghana Telecom to privately place a $200 million medium-term 

bond with foreign investors. The process of actually issuing sovereign bonds was a 

positive first step toward reaching the MOFEP's objective to build capacity in project 

financial analysis. Ghana's Treasury Single Account project will implement the new T24 

system in Q4-2008, and it will provide real-time balance information and improved GoG 

cash management. Significant revisions to primary dealers' guidelines, including a more 

balanced relationship between privileges and obligations, will foster more market 

liquidity and support broader market development. MOFEP and BoG staff were trained 

in the newly acquired Bloomberg system, and the BoG research department now includes 

Bloomberg data and graphs in its weekly public reports.

Kenya:

 Across this region of Africa, money markets are characterized by severe structural 

illiquidity. A few large banks, which dominate the markets, do not engage in 

uncollateralized interbank transactions with the rest of the market - largely due to their 

concerns about credit. This impedes the development of money markets and the efficacy 

of the central banks’ monetary operations. Since money markets are the foundation of a 

market yield curve, this has tended to retard the effective development of securities 

markets and price discovery across the curve. For these reasons, the development of a 

horizontal repo program (inter-dealer repurchase agreement) – one in which institutions 

can exchange liquidity on a collateralized basis - has been at the top of the IMF’s agenda 

in Kenya for several years. The Debt Team advisor guided counterparts on the

requirements for developing a repo program to support the efficient functioning of the 

domestic money market. He developed the operational guidelines and market code of 

conduct for the repo program; and advised the IT staff on the business requirements of an 

IT link to the central depository, necessary to assure delivery versus payment, which is 

essential to the program. The advisor also worked with legal staff to adapt the global

master repurchase agreement to meet domestic market requirements.

Lesotho:

 Like many governments, the Kingdom of Lesotho found, upon examination, that some of 

its functions had become bureaucratized to the point where they neither served the 

citizens nor effectively carried out their missions. The Lesotho Revenue Authority 

(LRA), the government agency responsible for collecting revenues, was one chosen for 

reorganization and reform.
 21 

US Treasury was asked to assist in helping management move the LRA to a more 

customer-oriented agency. OTA has been called on to provide a broad range of technical 

assistance for the purpose of building a more effective and efficient Investigative and 

Intelligence Unit at LRA and improving the overall performance of the Revenue 

Compliance Unit. 

To date OTA has provided ongoing technical and management advice to the LRA 

Commissioner Revenue Compliance on issues involving balancing of civil vs. criminal 

approaches on ongoing investigations. Advice has also been given to the LRA Legal staff 

concerning the appropriate manner to issue press releases on court proceedings. A 

formalized Fraud Information Item Referral procedure and reporting format has been 

developed that will enable public sources to report suspicious activity and alleged tax 

frauds to the LRA. To enhance operations of the LRA Investigation function, a 

Prosecution Policy has been proposed for implementation. Though there may be 

exceptions, the policy contains general guidelines that might be followed in the selection 

of the most egregious cases for criminal investigation and potential recommendation for 

prosecution.

Additional matters on which advice has been given for systems improvement include: 

ongoing investigative and technical guidance on numerous investigative matters 

including a “high profile” investigation of alleged evasion of income tax and nondeclaration of Value Added Tax (which could recover up to $1 million); guidelines on 

Fraud Referral Procedures for LRA Audit and Debt/Collection functions; Case Initiation 

Procedures; use of diaries in investigations; and development and use of an LRA 

investigative credential.

Liberia:

 The Liberian Government requires assistance in all aspects of administration as it 

attempts to reconstruct itself from the ashes of war. With significant timber, rubber, and 

minerals, the Liberian Government in Monrovia has the revenue potential to flourish, if it 

manages them correctly. OTA Revenue has been providing assistance to strengthen the 

technical ability of auditors as well as to create procedures that minimizes the cost of 

compliance for private business. An audit manual and related training have been 

completed -- along with refresher courses in accounting, basic audit techniques, and 

interview skills. In addition, based on information provided by an OTA advisor’s review, 

the Minister of Finance is investigating 15 audits from the Large Taxpayer Unit for 

malfeasance.

 Liberia has no legal provisions for restructuring its debt. An OTA Government Debt 

Issuance and Management project provided intermittent technical assistance in the 

preparation of the National Domestic Debt Resolution Strategy (still pending legislative 

approval), as well as providing guidance for an implementation plan for the strategy. 

Additional assistance addressed the early stages of the design and establishment of the 

Liberia Trust Fund. Once fully operational, this fund will be the primary vehicle for 

handling payments for restructured debt.
 22 

Madagascar:

 The Republic of Madagascar’s strategy for achieving the Millennium Development Goals 

is articulated in the “Madagascar Action Plan” (the MAP). In addition to outlining a 

number of steps to achieve the Millennium Development Goals, the MAP also establishes 

a wide variety of performance measures to monitor the development of the government’s 

different functions. The broad goals of the Treasury engagement in Madagascar with the 

Ministry of Finance and Budget were to improve the government’s budget process, and to 

increase the quality and quantity of public information related to the management of 

public finances. 

The 2008 budget was significantly improved by lengthening the budget process, 

developing a calendar with clear deadlines, and allowing more input into spending 

decisions between and among the different stakeholders of the government. The 

lengthened process allowed for analysis of spending requests of government ministries to 

ensure they were in line with the MAP. While the budget process was not perfect it was 

a vast improvement over the prior year.

As a companion to the budget the Ministry of Finance and Budget also produced a 

“Practical Guide to the Budget” which was an important step to publicize the work of the 

Ministry as well as to educate Parliamentarians on the budget. The Guide was also an 

important document for informing the general public about the work of the Ministry of 

Finance and Budget.

In additional to the Guide, an analysis of the results of the execution of the current year’s 

budget was published. This quarterly review which was done for the first time in CY 

2007, allowed both external and internal stakeholders of the government to review, in 

summary form, narrative and statistics concerning the financial performance of the 

budget. Considering that no intra-year reporting had ever been done before, this is an 

important achievement.

Malawi:

 Countries like Malawi have increasingly had to deal with a wide range of specialized, 

sophisticated financial and economic crime and fraud. They have particularly had to 

counter money laundering (and terrorist financing frequently tied to such money 

laundering). In order to address these issues, Malawi called on US Treasury to assist it in 

writing laws and regulations that met international standards that authorized the 

establishment of a central Financial Intelligence Unit (FIU), and prescribed the mission 

of the unit designed to centralize functions associated with economic crime.

OTA then was asked to aid in the establishment and development of the Malawi FIU as a 

key institution in the development and implementation of an effective AML/CFT regime, 

including the operational status and efficiency of the FIU. The FIU quickly became 

operational, and assumed the task of developing and implementing the AML/CFT 

Regime. Banks and Customs are currently reporting to the FIU, and preparations for 
 23 

reporting by other financial and non-financial sectors are ongoing. Domestic cooperation 

has been established and the FIU is in the process of signing its first Memorandum of 

Understanding with a foreign FIU.

The project has delivered extensive on-site mentoring and assisted the FIU to travel to the 

Financial Intelligence Centre in South Africa and at the Mauritius FIU, for further 

practical on-the-job training. The FIU staff also received training by the World Bank, 

IMF, the African Development Bank, FATF-Styled Regional Bodies, and others.

Knowledge and expertise acquired are also being successfully used by the FIU to assist 

other institutions in Malawi with their AML/CFT roles. Efforts by the FIU have

succeeded in raising awareness that a concerted effort is needed, and domestic 

cooperation is much improved. All objectives of the project were achieved. Scheduled to 

end in June 2008, the project was extended to September 30, 2008 in order for OTA to 

purchase the remaining necessary software and arrange for training of FIU personnel on 

its use. 

Mozambique:

 Despite remarkable economic growth since the end of the civil war, Mozambique 

remains an extremely poor country with pressing economic development and HIV/AIDS 

treatment and prevention needs. In coordination with the IMF and a donor’s coordination 

group, OTA has assisted the strategic planning efforts of the Central Revenue Authority 

(ATM) as it attempts to fulfill its role in improving state finances. OTA advisors have 

guided the formulation of the ATM Strategic Plan as well as the tactical plans for its 

fulfillment. Initial progress has been made in upgrading the technical abilities of auditors 

focused on key revenue sources for the country: the oil, gas and mining industries.

Namibia:

 Having passed the Financial Intelligence Act (FIA) in 2007, Namibia was faced with the 

challenge of implementation. In 2008 this involved establishing regulations in support of 

the law, providing specialized training to professionals who were charged with 

implementing the law, establishing relations with partner Financial Intelligence Units 

(FIUs) in other countries, and disseminating guidance on reporting responsibilities to 

accountable institutions and supervisory bodies within the country.

Accomplishments during 2008 included the development of Namibia’s AML legal 

regime, consisting of the regulations, exemptions, and determinations under the Financial 

Intelligence Act; the training of prosecutors (in cooperation with the UN Office on Drugs 

and Crime) which focused on the enterprise theory of investigating and prosecuting 

organized crime; providing the new OTA Financial Analysis Techniques Course (offered 

to Financial Intelligence Centre personnel and to representatives of the Namibian Police 

Force, Inland Revenue, Customs, the Prosecutor General’s Office, and the Office of the 

President [Intelligence]); the delivery of three weeks of AML training to banking 
 24 

institutions, securities firms, and insurance companies, agents and brokers, as well as the 

governmental supervisors thereof; and the development of a supervisory strategy, 

including the design of new legislation, for the gaming industry

In addition, cooperative arrangements and procedures were set up with other countries, 

primarily through MOUs, to enable the FIU to exchange information with its counterpart 

FIUs; and guidelines to assist the first phase of accountable institutions and supervisory 

bodies were developed.

Niger:

 The Republic of Niger is the fourth poorest country in the world and has historically had 

weak tax systems and an inability to effectively administer its tax laws through 

registration, voluntary compliance, audit, and collection – the standard tools of tax 

administration. A modern tax administration, by broadening the base of compliant 

taxpayers, creates a fair playing field in which small and medium-size firms can help 

diversify the economy, and mitigates the cyclical effect of fluctuating resource prices on 

government coffers. Likewise, a stable tax base is necessary preparation for the day 

when donor flows eventually dry up. 

In collaboration with the OTA Revenue Team, the Nigerien tax administration (DGI)

created, approved and implemented a collection manual. A nationwide training program 

exposed collection staff to the new, standardized procedures and policies contained in the 

manual. OTA is assisting DGI in conducting regional reviews of the implementation of 

the new manual. Officials give significant credit to OTA assistance in helping revenue 

collection increase by 22% in 2006 and by 30% in Q1 2007 compared to a year earlier. 

As a percentage of GDP, tax revenues have shown a steady increase, from 10.3% on 

average in the 2002-04 period to 11% from 2005-07, with the 2007 figure rising yet again 

to 11.7%, according to the IMF. The communications and public relations training the

DGI employees received made a great impact in how they deal with taxpayers and, as a 

result, in taxpayer compliance and increased revenue. A new Code of Conduct was 

submitted to DGI management and the employees’ union for final validation. Final 

approval of the Code was delayed so that recommendations from OTA could be 

considered. The DGI included in the Code a section on communications and public 

relations echoing the concepts that were previously provided in the training.

Nigeria:

 Nigeria has suffered in the Government Debt arena from weak debt recording procedures, 

and an extended period during which no domestic debt had been issued. Since 2001 Debt 

Team projects have provided debt management training and advice to the Nigerian Debt 

Management Office. After reconciling and improving existing debt recording practices, 

advisors have enabled Nigeria to restructure its debt portfolio and to issue long term 

domestic debt after an absence from the market of eighteen years. Regularly scheduled 

bond offerings of two and three year maturities were introduced and marketed through a 
 25 

network of Primary Dealer banks who also assumed the obligation of making two-way 

quotes in the secondary market. The development of the secondary markets attracted 

international investors, in substantial numbers, to the Nigerian government bond market 

for the first time in 20 years. A major milestone in the development of the market was 

reached during 2007/2008 when an advisor developed a system that enabled the Debt 

Management Office to re-open previously issued bonds. This led to the development of 

highly liquid benchmark issues in three, five and ten year maturity sectors that will 

eventually serve as reference points for the development of the private sector (corporate 

and sub-national) debt markets.

Rwanda:

 Lack of monetary operations flexibility in the Central Bank of Rwanda (CB) hindered its 

ability to manage and contributed to a distortionary effect in fixed rate operations. An 

OTA Debt Team project has led to the overhaul of the CB’s monetary operations and 

related issuance program, by developing a program that replaced the CBs fixed deposit 

facility and weekly deposit auction program for banks, with a flexible, multi-tenor CB 

repo program. This has given the CB more flexibility to manage monetary operations and 

will reduce the distortionary effect of its fixed rate operations in the market. As a result, 

the CB is now a price taker. The project also developed a program for the issuance of 

treasury bonds. The government of Rwanda now issues two and three year bonds. This 

has set the stage for the first corporate issuance in Rwanda in which a corporate issuer 

issued a 5 year bond. 

The project has encouraged the development of an enhanced registry, to record secondary 

market sales and transfers, which is needed to accommodate the enhanced issuance 

program, featuring coupon instruments, as well as the emergence of secondary market 

transactions.

Uganda:

 Uganda had a financial regulatory framework that limited increased activity in 

government bonds. The OTA Debt Team developed a new financial regulatory 

framework for Primary Dealers, to cover increased activity in the government fixed 

income securities market - including swaps and other derivative transactions and the 

attendant impact on money market liquidity and volatility. The new financial regulatory 

framework also applies to non-bank financial institutions which were not subject to 

central bank regulatory oversight and encourages uniform compliance for banks and nonbanks using Basel-type risk-based financial capital regulations.
 26 

Zambia:

 The revenue, expenditure, cash management and accounting processes within the 

Ministry of Finance and National Planning (MFNP) are fragmented, weak in internal 

controls and inefficient. As a result, financial information is not provided to decision 

makers in a timely or accurate fashion. This is especially true in reporting the 

Government’s cash position. The lack of timeliness in consolidating information on 

available cash balances has resulted in the Government having to borrow funds, despite 

idle balances in spending agency accounts. The MFNP issues T-bills to finance the 

budget, and the Bank of Zambia currently issues term deposits to, essentially, ration cash.

The Budget Team Project worked to develop and strengthen the different treasury 

functions that are managed by the MFNP’s Budget Office, Investment and Debt 

Department, and the Accountant General’s Office. It assisted in outlining relationships 

with relevant institutions/departments within and outside of MFNP towards the goal of 

establishing a Treasury Department in MFNP and placing the treasury functions in it. 

An effective cash planning and funding management system ensures smooth budget 

execution and avoidance of unnecessary borrowing on the part of the government. A 

cash management training course for controlling officers of spending agencies was 

developed and provided to director-level staff of MFNP, Bank of Zambia, and Zambia 

Revenue Authority. The Budget Team Project worked with the Integrated Financial 

Management Information System (IFMIS) project team on the cash management 

functionality of the IFMIS, as well as cash forecasting and improvements to non-revenue 

collection procedures.

The Budget Team Project provided technical assistance on the creation of an 

implementation plan for payroll direct deposits to go through MFNP-controlled accounts, 

rather than through individual spending agency accounts. This will decrease the need for 

the individual spending agency accounts to handle the payroll cash, and increase the 

Government’s control over its available cash balances.

A Treasury Single Account (TSA), once implemented, will increase the efficiency of the 

government’s financial operations, improve transparency of Treasury activities and 

permit the use of idle cash balances for the government’s benefit. The Budget Team 

Project assisted in drafting a Cabinet Memoranda to establish a TSA and Treasury 

Department.

Asia and Near East

Indonesia:

 When the OTA Debt Team initially placed a Resident Debt Advisor in the Ministry of 

Finance of Indonesia in June 2001, the country suffered from a lack of efficiency in its 

debt issuance and management practices, lacked a sovereign debt law, had no Primary 

Dealer System, and did not issue Treasury Bills. Major accomplishments of the Debt 

Team project included reprofiling of $19.1 billion of securities held by state-owned banks 

and the passage of a sovereign debt law. In November of 2006, the Team placed a new 
 27 

resident advisor at the MoF. Global and domestic factors have amplified certain classes 

of risk and raised legitimate concerns about the cost and availability of market based 

finance. Accomplishments of the current project include the design and introduction of 

the Primary Dealer System. The system contained a two-tiered capital adequacy 

requirement specifically designed to accommodate smaller domestic institutions along 

with the large international banks. All domestic government securities are now sold via 

auction with competitive market based pricing using this mechanism. Auctions are now 

routinely oversubscribed and a secondary market has developed for government 

securities. The introduction of first Treasury Bills was another project milestone that 

provided a new class of securities previously unavailable to investors. The project

supported the Ministry’s work on its international and Islamic (sukuk) bond programs. 

The advisor worked with the Ministry on a comprehensive approach to identify and 

manage the components of risk facing the Directorate General of Debt Management. Two 

GDIM specialist advisors working on risk modeling, sustainability analysis, and IT 

design supported this effort. 

 The decision by the Director General Tax (DGT) to implement a pilot Document 

Processing Center (DPC) and, based on that experience, to build additional DPCs, 

presented several major challenges in management, coordination, contract management, 

IT development and implementation, and system conversion.

USAID and the US Embassy in Jakarta requested OTA assistance in planning and 

implementation of the pilot Document Processing Center, and preparation for the

establishment of additional facilities and organizational processing capability. Technical 

assistance began in May 2007. DGT identified an IT contractor, established a production 

facility, and laid the necessary legal groundwork in time for the pilot DPC in Jakarta to 

begin operations in January 2008. OTA advisors reviewed the staffing plan at the Jakarta 

DPC and successfully advocated for additional contractors to be hired for the 2009 March 

filing season and for the development of an in-house information technology capacity. 

The OTA Revenue Team has conducted assessments and provided recommendations on 

the layout and structure of proposed sites in Medan, Surabaya, Makassar, and Jambi for 

subsequent DPCs that will begin operations in mid-2010. 

In February and March, the OTA project reviewed and redesigned the Value Added Tax 

(VAT) and individual taxpayer forms to ensure they would be easily and accurately read 

by the scanning equipment. In November, a follow-up forms design workshop was 

conducted for 20 DGT officials based on the tax analysis and forms design manual 

developed by OTA. Feedback provided during the workshop was used to draft seven 

new Withholding Tax Forms based on the recently passed legislation on withholding 

taxes. 

In cooperation with the World Bank, OTA conducted two project management classes to 

provide participants with the tools and concepts to facilitate and document the initial 

planning of the next DPC sites. OTA advisors are also supporting efforts for the DGT to 

move from a collaborative in-office tax assessment system to a self-assessment tax 

declaration system. To date, OTA has conducted assessments of the technical program 

and strategic management capability of the Directorate of Tax Counseling Service and 
 28 

Public Relations including strategic direction, operating plans, and overall program 

direction as well as the public relations and media affairs capacity of this department. 

Based on the results of this assessment, OTA conducted three training sessions for 20 

participants, including senior-level DGT officials. 

In December, OTA initiated a review of the nascent electronic filing program and 

developed recommendations to meet the DGT’s target that 80 percent of all taxes will be 

filed electronically by 2013. These recommendations include developing a year-by-year 

action plan as well as targeted informational campaigns, skills that were further honed by 

the OTA workshops on project management and public relations. 

Jordan:

 Defining, detecting, prosecuting, and punishing various forms of economic crime have 

direct benefits to the order and governance of any country. Beyond domestic benefits, 

however, building the capacity to be an effective partner in such matters with other 

countries benefits the entire international community. The Economic Crimes Team 

project in Jordan not only assists that government in establishing an effective Anti-money 

Laundering/Countering the Financing of Terrorism (AML/CFT) mechanism that meets 

international standards, but also makes Jordan a partner capable of contributing to the 

prosecution of complex US criminal cases that have ties to criminal activity in that 

region.

Jordan began receiving OTA technical assistance in March 2006, when a Treasury 

Terrorist Financing and Financial Crimes (TFFC) representative was placed at the U.S. 

Embassy in Amman. These efforts resulted in Jordan passing an AML law that went into 

effect on July 17, 2007. The law created a unit staffed by personnel previously assigned 

to the Central Bank of Jordan (CBJ) Suspicious Transaction Follow-up Unit. Since 

passage of the law, OTA has delivered numerous training programs and mentoring 

exercises as well as assisted criminal investigators, prosecutors, financial sector 

regulators and customs officials in developing their agencies’ capacity to combat money 

laundering and terrorist financing. By the end of FY2009: all criminal investigators and 

prosecutors will have received financial investigative techniques basic training; train-thetrainer programs for police and prosecutors will be in place to continually update 

AML/CFT training; the Anti Money Laundering Unit (AMLU) will have sufficient 

analytical capacity and will have satisfied other requirements to become a member of the 

Egmont Group of Financial Intelligence Units; Jordan Customs will have embraced an 

internal task force approach to investigating customs violations relating to major criminal 

activity connected to money laundering and terrorist financing; obligated entities will 

understand the need for reporting suspicious activity to the AMLU; and, the government 

will have recognized the need for specific legislation criminalizing terrorist financing and 

strengthening asset forfeiture provisions of AML and anti-terrorism statutes.
 29 

Philippines:

 Since 2005 OTA has assisted the Government of the Philippines in a wide variety of 

initiatives addressing economic crime and law enforcement. The OTA advisor was a 

mentor to the Anti-Money Laundering Council of the Philippines and assisted them in 

providing training to Law Enforcement Agencies on Anti-Money Laundering and the 

Control of Terrorist Financing. The project came to an end on December 30, 2008.

During these three years, several key accomplishments highlighted the success of the 

project. The Philippines was removed from the Non-Cooperating Countries and 

Territories list in 2005 and became an Egmont member as well. The Philippines is now a 

member of the Steering Committee of the Asia Pacific Group (FATF). Since January 1, 

2007, approximately 1000 law enforcement personnel from over 25 enforcement 

agencies have been trained, including personnel being assigned to the Anti-Terrorism 

Council set up under the newly enacted Human Security Act of 2007. OTA has assisted 

in the training of Philippine border agencies on procedures for impeding bulk cash 

smuggling. Seizures and arrests have increased because of this training. The Philippines

is now working with anti-corruption authorities to target the laundering of proceeds by 

corrupt officials. Several high-profile prosecutions and several investigations involving 

terrorist financing are under way. 

Vietnam:

 The economic growth and success of Vietnam are of special interest to the U.S. – in part 

because of our historical ties with that country – and in part because Vietnam stands as an 

example, if not model, of movement from a centrally managed people’s republic to a 

market economy. Treasury is particularly gratified that the Vietnamese government has 

turned to it for financial technical assistance. Beyond sharing our knowledge and 

experience with Vietnamese counterparts, OTA learns much about how it may become 

more effective and relevant to the needs of the countries and people of Southeast Asia. 

Beyond technical knowledge transfer, OTA has found that implementing new 

management practices (such as management of the public trust) can represent cultural 

changes more challenging and profound than new technical processes. 

A new tax project began in March 2007 to assist in institutionalizing anti-corruption 

controls and behavior and supporting the new functional organization through an 

enhanced human resources structure. The General Department of Taxation (GDT) has 

approved a Code of Employee Conduct and an associated Table of Discipline. From 

May-August, the GDT Human Resources conducted ten sessions for provisional tax 

office heads on the new Code of Conduct and associated table.

A new internal investigations function for investigating allegations of employee 

misconduct has been established, along with position descriptions and an operational 

manual for this function. The staff of the new Internal Inspection Department (IID) has 

been quick to adopt the skills and resources made available by the OTA Revenue Team

project. For example, IID heads from provincial tax offices reported that they had 
 30 

successfully used the interviewing skills from an OTA October 2007 workshop to obtain 

confessions in an employee corruption case. OTA has also worked closely with the IID 

on the development of audit and inspection regulations and procedures as well as 

performance criteria. In December, OTA advisors conducted an investigations training 

program for 71 top managers from all of Vietnam’s 64 provincial tax offices. The 

workshop was recorded and copies will be distributed for viewing by the remaining IID 

staff auditors in offices throughout Vietnam.

For the primary functions of the GDT, positions descriptions to define the tasks, duties, 

skills, knowledge, education, and experience for a three-tier technical career track have 

been drafted for 20,000 employees. These descriptions will form the foundation for 

recruitment, training, evaluation, and promotion in the future. 

The OTA Revenue Team and the Debt Collections and Enforcement Department at the 

Tax College finalized a debt collection manual and curriculum for training design and

development. Leadership skills trainings continued and were based on assistance 

provided by OTA in 2007; GDT trainers taught over 200 local office managers in 2008. 

In December, OTA advisors and instructors from the Tax College co-taught a pilot trainthe-trainers course, based on the new manual, for 15 debt collections managers from 

provincial tax offices. The participants will form the cadre of future trainers and be a 

significant step in the Tax College’s efforts to develop career-training programs. 

A new HR infrastructure has been created to support the functional organization of GDT. 

Position descriptions have been prepared for the four primary functions that will serve as 

the foundation for recruitment, training, and career development. Once the government 

has approved this international best practice, plans are to pilot test the new PDs in 

selected field offices in 2009.

Latin America and the Caribbean

COTA (Caribbean Organization of Tax Administrators):

 Professional training activities often conclude with high participant ratings of material 

they have just received, but without follow-up or verification that any relevant 

improvement in performance has actually taken place.

In October 2007 in Antigua, OTA advisors led a workshop on Leadership, Managing 

Change, and Human Resources Management for 23 participants from 12 countries in the 

region. This was the fourth and final workshop in a project that comprised a training 

series for regional tax administrators. Previous workshops had focused on planning and 

management, as well as management of specific functions such as audit, collection, and 

taxpayer service. All these sessions received very high post-class evaluations from 
 31 

participants. In preparation for the final workshop, each country was requested to 

complete an analysis of accomplishments stemming from the project. Eleven countries 

responded, with the following results: 7 had initiated a strategic planning process or had 

made improvements to their annual planning processes; 7 countries improved their 

collection processes and procedures and 5 improved their taxpayer service processes and 

services. Two agencies had undertaken a reorganization of tax administration; and partial 

reorganizations were taken by 4 agencies to improve audit, and by 3 agencies to improve 

taxpayer service. Improved audit processes including audit selection had been achieved 

in 5 countries.

Chile:

 Illegal or unregulated gambling provides a stimulus to criminal activity wherever it is 

practiced. Gaming is virtually unregulated throughout all of Central and South America. 

US Treasury has been working with the government of Chile through the 

Superintendencia de Casinos de Juego (Chilean Gaming Board) to make this organization 

a world-class gaming regulator which, it is hoped, will serve as a model for all of the 

Spanish-speaking Americas.

Over the past two years Treasury has assisted with the licensing process for new casino 

operators in Chile to assure that licensees meet suitability standards and that only fit and 

proper applicants receive licenses. OTA has also provided assistance with gaming 

regulations and formal Internal Control Standards as well as extensive training classes for 

the regulators. Training for the Gaming Board has been given in Las Vegas and as a 

result mutual cooperation agreements have been signed with several US gaming 

jurisdictions. Upcoming efforts include developing the Gaming Board’s audit and 

investigations programs along with assistance with statistical programs and statistical 

analysis. 

The impact of Chile as a regional model has already been seen. Several South American 

countries and Mexico sent representatives to OTA training sessions and have observed 

the benefits of sound gaming regulation as well as how Chile has developed its gaming 

regulatory regime. We hope this is a solid indicator that the Chilean model will be 

adopted in other countries.

Colombia:

 In late 2007, the Director General of Colombia’s Dirección de Impuestos y Aduanas 

Nacionales (DIAN) requested assistance from the OTA-Revenue Administration Program 

in internal controls, internal security, and transfer pricing. In March 2008, the OTA

Revenue Team conducted an assessment and shortly thereafter began working with 

counterparts at DIAN to develop a Code of Ethics, identifying topics, reviewing codes 

used by other tax administrations, and analyzing existing laws and procedures. The 

Director General required that all staff attorneys at the DIAN’s Labor Relations 
 32 

Department work full-time on the code, an indicator of its importance as well as the level 

of commitment from DIAN. The draft was finalized in September, and in November, the 

new Code of Good Governance, which includes the Code of Ethics, was adopted. 

The introduction of the Code of Good Governance coincided with the announcement of a 

broad reorganization of the DIAN into six management functions. The restructuring 

implemented a key OTA recommendation to move the Office of Internal Control so that 

it reports directly to the DIAN Director General, thus maintaining its autonomy, 

increasing the professional integrity and accuracy of the audit function, and serving as a 

deterrent to corruption. 

OTA conducted a two-phase internal control training for 28 tax officials from the 

Directorate of Organizational Management and the Office of Internal Control, including 

its newly appointed Director. The training focused on the types of audits that can be 

performed with the units’ current staffing and resource levels as well as the role of these 

units in developing new applications and systems for audits. 

OTA is also supporting DIAN’s efforts to establish an Office of Disciplinary 

Investigations within the Ministry of Finance that will be responsible for investigation of 

serious allegations of employee misconduct and corruption. OTA developed a series of 

recommendations that, if implemented, would streamline the current investigative 

process, improve the detection and prosecution of corruption (rather than minor 

administrative infractions), and create a mechanism to solicit information from DIAN 

employees. 

In 2009, OTA will continue working with DIAN to establish the Office of Disciplinary 

Investigations and to provide training and support for the newly created Office of Internal 

Control. OTA and DIAN will develop and implement a training program to familiarize 

employees with the Code of Ethics. OTA advisors will also conduct an assessment of the 

newly formed International Audit Section, with particular emphasis on assistance with 

Transfer Pricing. 

Costa Rica:

 The Minister of Hacienda and the Government wanted to improve efficiency and 

transparency of its institutions and to increase the capacity of its technical staff. All 

phases of the budget cycle – formulation, execution, accounting, reporting and auditing –

needed improvement. The reforms of 2007, such as multi-year budgeting, utilization of 

performance information in the budget and strengthening of audit and control functions, 

were further fortified in 2008. Costa Rica’s public financial management system was at a 

critical stage where recent reforms and newly established fiscal discipline needed to be 

solidified and used as a base for further reforms.

The Budget Team Project worked with four high profile ministries (Ministry of Public 

Works and Transportation, Ministry of Public Safety, Ministry of Health, and Ministry of 

Agriculture) to improve the quality and quantity of performance information in the 
 33 

annual budget. Eighteen improved performance indicators were included in the 

Government’s 2009 national budget proposal. So satisfied was the Ministry of Hacienda 

with the project’s accomplishments that it provided assistance to additional ministries in 

late-2008 using the same tools and techniques employed during the original Budget Team 

Project. 

Building on technical assistance provided in 2007, additional training and guidance were

provided to the Ministry’s forecasting team that allowed for the use of more sophisticated 

tools and techniques in estimating revenues for the 2009 national budget and having the 

capacity to develop medium-term revenue estimates. 

The Ministry committed to implement a multi-year budgeting process. This involves the 

publication of the Government’s first-ever “fiscal strategy document” that will discuss 

the country’s medium-term macroeconomic situation and fiscal direction and include an 

analysis of the Government’s debt sustainability. As a sign of the Government’s 

seriousness regarding these reforms, the 2009 proposed budget committed the Ministry of 

Hacienda to publish multi-year baseline and budget estimates beginning in 2009.

The Ministry of Hacienda’s Budget Execution and Control Unit executed a new and 

improved audit program with a focus on evaluating the effectiveness and efficiency of 

Government programs (i.e. operational auditing). The Unit successfully completed audits 

of eight programs, including education, health, housing, science, and labor programs. It 

improved communication between the Unit and the central budget staff. To follow up on 

formal audit, execution, and control training that was conducted in 2007, the Budget 

Team Project held work sessions with the Unit to review their progress in moving toward 

operation auditing and to provide feedback and recommendations. 

 Costa Rica provides a good example of a country not only committed to improvement 

and reform, but one that is also aware of the importance of follow-through on the change 

process so that reforms have a greater likelihood of long-term sustainability.

After 5 years of successful partnership for change, the Costa Rica revenue project is 

scheduled to close in early 2009. In 2008, the project focused on: improving planning 

and management within the Tax and Customs administrations; tax audits; collection of 

delinquent accounts; internal investigations; and management of the Digital Taxation 

Project. Through OTA assistance the first tax administration (DGT) tactical plan was 

established, under which strategic improvements were managed during 2008. In 

Customs (DGA), OTA assisted the establishment of an approved strategic plan for the 

years 2008-2011 and the preparation of a tactical plan. In tax audit, an improved system 

of risk-based audit selection was implemented. In enforced collections, DGT began 

exercising its authority to close businesses of delinquent taxpayers, forcing 27 percent of 

noncompliant business taxpayers to either pay or agree to installment agreements. In 

Internal Investigations, the first Internal Affairs Unit was authorized by the Minister of 

Finance with targeted full implementation in January 2009. The Ministry of Finance 

adopted the Internal Affairs’ employee Code of Ethics, and continued to develop the

Operational Handbook in 2008. As of November 2008, 3 cases have been closed with 

findings and 22 cases remain open. Finally, in Information Technology, OTA reviewed a 

major business re-engineering contract (estimated value $20 million) and identified 
 34 

several major coordination, communication and management issues that led to the ViceMinister’s direct involvement in contract implementation. 

Guatemala:

 The historical lack of transparency in the tax administration (SAT) in petroleum product 

import audits and Human Resource operations is now becoming largely overcome, and 

increasingly effective investigations of ethics violations can be attributed to OTA 

assistance. 

Strong counterpart engagement by the tax administration (SAT) enabled continued 

development of the Petroleum Unit, demonstrated by its ability to deliver training on 

petroleum product control and taxation to neighboring OTA Revenue Team project 

counterparts in Honduras and Nicaragua in November 2007. Additionally, OTA 

continued to advance SAT’s efforts to reform Human Resources by establishing new 

occupational positions, career paths and a compensation system, and committing business 

functional units to assign personnel to design and deliver technical training. SAT 

reduced the number of factors used to evaluate employees from 40 to a more manageable 

total of 19 and initiated the process to standardize the screening and selection process for 

promotions. In ethics and transparency, OTA assisted SAT eliminating adjudication of 

misbehavior from the functions of the unit charged with internal investigations, forming 

an Inspector General (IG) office, writing policy and procedures for SI and approving a 

revised Code of Ethics (COE) and revisions to misconduct and ethical violations reports. 

The OTA success in a project in 2006 resulted in USAID approval of co-funding for the 

first time in FY08.

Haiti:

 Haiti has presented some of the most intractable challenges in this hemisphere. Poverty, 

instability, political volatility, and crime have all contributed to breakdowns in orderly 

governance and social order. Treasury’s approach has been to be patient, persistent, and 

alert for any areas in which it seems potentially possible to bring about positive change. 

Opportunities have most recently occurred in the arena of tax administration.

Co-funded by USAID, the OTA Revenue Team project resumed its third year of 

activities in Haiti with the Direction Générale des Impôts (DGI). Advisors completed a 

review of all tax laws and provided DGI officials with observations and 

recommendations for improvement. These recommendations were also shared with the 

IMF, Canadian International Development Agency (CIDA), and the Inter-American 

Development Bank. OTA advisors have conducted training sessions on audit, course 

development, and instructor training for more than 40 DGI and Ministry of Finance 

officials. In June, five alumni from the training sessions co-taught an auditing course 

with the project manager. 
 35 

With roughly 80 percent of the population living below the poverty line, Haiti’s meager 

resources have been further exacerbated by the hurricanes that struck in August and 

September that damaged critical infrastructure, including DGI facilities. In spite of these 

challenges, work continued apace on the Haiti Revenue Project. 

In September, the Tax Audit Manual Working Group completed a draft manual that 

incorporated OTA recommendations as well as training materials from the May and June 

workshops. Mandatory use of the audit manual will improve the transparency of the 

process, reduce the opportunities for human discretion and provide the basis for 

evaluation of auditors and audit programs.

OTA finalized recommendations to improve management skills of DGI officials, based 

on a survey of senior and mid-level officials and an assessment of the Human Resources 

and Training Functions at the DGI. These recommendations aim to institutionalize

management training and a basis for OTA’s further consulting on tax administration 

management.

In December, OTA conducted Advanced Audit Techniques for Financial Institutions 

training for twenty DGI officials, including the five tax auditors who co-taught the Basic 

Auditing Course and are being groomed to form the training cadre within the DGI. That 

same month, the OTA project initiated assistance to the DGI on its master 

computerization plan. This component of the project will be implemented by an official 

on detail to OTA from the Treasury Inspector General for Tax Administration (TIGTA). 

In 2009, manuals for Audit, Collection, and Internal Control will be finalized and training 

courses will be developed and delivered. OTA advisors and their DGI counterparts will 

co-teach pilot courses based on material from these manuals, in addition to conducting 

the functional management training for senior and mid-level officials. 

Honduras:

 In 2006 the Public Credit Department of the Central Bank of Honduras was largely 

disorganized and inefficient. Its capacity to raise funds was severely impaired by these 

limitations and a lack of effective processes. The OTA mission in Honduras began in 

2006 under a dual Terms of Reference with the Ministry of Finance and the Central Bank 

of Honduras. Since that time several important projects have been advancing with both 

entities. In the Ministry, OTA Debt Team has reorganized the Public Credit Department 

into front, middle and back offices, introduced a Procedures Manual and Code of Ethics 

and is in the process of developing position descriptions and annual employee evaluations 

to improve the efficiency and professionalism of the department. The 2008 bond program 

is on track to raise almost $300 million in local currency, a portion of which was used to 

recapitalize the ailing government owned energy company (a much more transparent 

solution than government guaranteed bonds). In 2008 a special task force was created to 

get a handle on contingent liabilities and guarantees. At the same time, the task force 

compiled information on municipal debt that will be input into the public debt database. 
 36 

Best practices in debt management are becoming entrenched as high level meetings of the 

Public Credit Commission are held regularly with frequent sub-committee meetings to 

prepare materials for the Commission. A special seminar was held to evaluate debt 

sustainability and to prepare the first draft of the National Indebtedness Plan for 2008-

2012. This Plan, plus a Recommendation for the Resolution of the Cuasi-fiscal Deficit 

prepared by another sub-committee of the Commission, will be submitted to the 

Commission for approval with the final versions incorporated in the National Budget and 

submitted to Congress.

 Though the economy of Honduras has grown over the past few years, distribution of 

wealth is quite unequal, and the country remains one of the poorest in the Western 

Hemisphere. Nonetheless, tax collection has improved. As the tax function is one of a 

very few positive stories in Honduras’ financial picture, maintenance and strengthening 

of this function continues to have a high priority. Treasury’s Revenue project in 2008, 

co-funded by USAID, provided assistance in internal investigations, audit, enforced 

collections and taxpayer service. 

Achievements in internal investigations include completion of a draft manual for the 

Internal Investigation Unit, review of and recommendations concerning, the Anti-Evasion 

Law awaiting legislative approval, and completion of the drafting of a Code of Conduct 

and Table of Sanctions that are awaiting legal review.

In audit, a Petroleum Unit consisting of auditors, engineers, and customs deputy 

administrators was established in February 2008 and has closed three audits and assessed 

an additional 768.6 million Lempira (40.6 million USD) due from the petroleum product 

importers as of November 2008. An auditor time reporting system has been 

implemented, improving the audit function's management of information systems, and an 

automated selection system for identifying taxpayers for audit has been implemented, 

providing transparency and integrity to the system. 

In enforced collections, OTA recommendations to (1) increase regional office staffing; 

(2) begin actively collecting taxes from segments other than large taxpayers; and (3) 

implement standardized management reports so the Collection Function can begin to 

track its productivity, led to increased collections of delinquent accounts from 2007 to 

2008 by 19 percent.

In January 2008, a Civil Service Reform pilot project began in the Honduras tax 

administration Executive Directorate of Revenue (DEI) for eventual rollout nationwide.

This project is scheduled for completion in October 2009 and receives funding from the 

Honduran government. Accomplishments include drafting legislation for HR authority, 

including legal prohibition for non-merit based HR decisions (e.g. political appointments 

below the Director General Level), budget authority, and independent HR regulatory 

authority. Reforms will include standardized hiring procedures for professional 

positions, development of new position descriptions and career ladders for the major 

occupations at DEI, completion of a salary comparability study, submission of a proposal 

for Pay Reform to the Minister of Finance, development of a Bonus Program,

development and approval of a Performance Management System, and design and 

approval of Performance Management training.
 37 

Nicaragua:

 Nicaragua is classified as a Highly Indebted Poor Country (HIPC) and is the second 

poorest country in the Western Hemisphere after Haiti. It represents, however, yet 

another example of how even countries in severe straits and with limited opportunities 

can benefit from progress achieved with the support of targeted financial techncial 

assistance.

USAID co-funds this OTA project, which is scheduled to end in 2009. The project has 

made significant impact on basic audit capability, and will wrap-up with assistance visits 

in two targetd areas: intermediate audit techniques and enforced collections. OTA 

assisted the Direccion General de Impuestos (DGI) auditors’ skills development, 

demonstrated by the DGI auditors’ ability to instruct other tax auditors in the regional 

Audit Phase 2 training in September 2008, and their capability to prepare a manual for 

advanced, larger case audits in 2009. Further, OTA assistance guided the Enforced 

Collection function to prepare more effective management reports with monthly and 

cumulative tax debt recovery data at various levels, and enabled DGI trainers to train 

80 Enforced Collection staff, managers, analysts and lawyers, in collections interviewing 

and negotiating techniques. At the recommendation of OTA, the Director General 

provided cellular phones to Enforced Collection heads nationwide to establish an 

additional communication channel to contact delinquent taxpayers. The result of these 

efforts is a 34 percent ($10.6 million USD) increase in enforced collections from January 

to August 2008 over the same period in 2007.

 OTA’s Debt Team has been engaged in Nicaragua since October, 2002. Since that date, 

Debt Team projects have supported both the Ministry of Finance (MoF) and Central 

Bank (CB) in creating a Public Debt Law; reorganizing the Debt Management Office; 

promoting coordination between the MoF and CB to avoid market fragmentation of debt 

issuance; institutionalizing communication channels between the government and private 

investors; negotiating a US$150 million stand-by liquidity facility with a multilateral 

institution for the CB to mitigate a potential liquidity crunch during the presidential 

elections; executing a US$ 1.4 billion external-commercial debt repurchase operation 

(November 2007); and issuing, for the first time in Nicaragua’s history, standardized, 

non-compulsory government bonds. In 2008, the government for the first time published 

a yearly issuance plan and calendar; however, a decision by the government to suspend 

servicing certain government securities issued in favor of local banks and later 

renegotiating payment terms under conditions viewed as unfavorable to the holders 

brought to a halt the debt issuance program for the year. Notwithstanding, a major 

milestone was reached with the approval by the President of the first National Debt 

Strategy (2008-2011), which lays out the strategic initiatives necessary to reach debt 

sustainability and reduce dependence on external financial assistance over the medium 

term. The Advisor has also made arrangements to provide GDIM training on managing 

risk to the Debt Management Office and on strengthening cash management processes to 

the Treasury.
 38 

Europe

Albania:

 OTA’s GDIM has been resident in Albania since August 2004 with two successive 

advisors supporting both the Ministry of Finance and the Bank of Albania. Goals of the 

project have included lengthening the average maturity of debt, moving toward an 

electronic auction system, and opening domestic government securities market to 

international participation. In the last two years, GDIM has worked with the Government 

to more than double the average maturity of debt to approximately 450 days from under 

200. This maturity extension, which mitigates refinancing risk, was accomplished by 

introducing both 7-year fixed rate notes, and 5-year fixed and floating rates notes. At the 

same time the Ministry has moved to a completely electronic auction system using the 

Reuters auction platform. The electronic auction system has contributed to better market 

transparency and increased efficiency at both the Bank of Albania and the Ministry of 

Finance. In early 2008 the Ministry closed on its first syndicated bank loan, opening a 

new financing alternative and further reducing financing risk. The Government has also 

opened its domestic government securities market to international participants and 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 which 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. Non-competitive participation in government securities auctions continues to 

increase and now comprises nearly 8% of the domestic market.

Eurasian Group:

 Economic crime respects no political borders. In order to effectively battle money 

laundering, terrorist financing, and other financial crime, regional and international

cooperation and coordination are necessary. US Treasury is assisting the Eurasian Group 

(EAG) in advising its member countries in how to comply with international best 

practices and standards in the AML/CFT area. OTA is specifically making contributions 

in the areas of operational standards and principles for analysis, information security, and 

information exchange. Other partners have stepped forward to lend credibility and 

support to the EAG. Rosfinmonitoring (the Russian FIU), for instance, has committed at 

the highest level to implement the analytic standards and has already outlined an HR 

program for translation of the standards into position descriptions, candidate assessments, 

and performance evaluations. These are very likely to become best practice models for 

other EAG members. 

OTA has initiated the procurement process for a multi-course, analytic training 

curriculum development contract using $500K granted by State/INL for this purpose.
 39 

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 
 40 

needs by virtue of location, financial structure (e.g. significant 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 reformminded 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.
 41 

Table A

FISCAL YEAR 2008 BUDGET EXECUTION PLAN

Treasury International Affairs Technical Assistance (TIATA)

Project Allocation from Fiscal Year 2008 TIATA Budget

CoFinancing TIATA 1

Team Advisor Category Amount Amount Total

SUB-SAHARAN AFRICA

African Development Bank FE Resident $0 $600,000 $600,000 

East Africa Regional (Kenya) GDIM Resident $0 $545,000 $545,000 

East Africa Regional (Uganda) GDIM Resident $0 $545,000 $545,000 

Eastern and SouthernAfrica AML Group 

(ESAAMLG) FE Intermittent $0 $150,000 $150,000 

Ethiopia FE Intermittent $0 $300,000 $300,000 

Ghana BUD Resident $0 $580,000 $580,000 

Ghana GDIM Resident $173,386 $306,000 $479,386 

Guinea BUD Resident $0 $121,000 $121,000 

Madagascar BUD Resident $0 $349,675 $349,675 

Mozambique TAX Project Coordinator + Intermittents $0 $410,000 $410,000 

Namibia FE Resident $0 $580,000 $580,000 

Niger TAX Project Coordinator + Intermittents $0 $320,000 $320,000 

Nigeria GDIM Resident $285,078 $275,000 $560,078 

Zambia BUD Resident $0 $634,000 $634,000 

Zambia (Blagg) BFS Resident $0 $570,000 $570,000 

Zambia/South Eastern Africa (Morris) BFS Resident $0 $575,000 $575,000 

Subtotal Sub-Saharan Africa $458,464 $6,860,675 $7,319,139 
 42 

CoFinancing TIATA 1

Team Advisor Category Amount Amount Total

GREATER MIDDLE EAST

Afghanistan BFS Intermittent $0 $350,000 $350,000 

Afghanistan FE Resident $0 $700,000 $700,000 

Algeria BFS Resident $0 $750,000 $750,000 

Algeria GDIM Intermittent $0 $300,000 $300,000 

Algeria TAX Project Coordinator + Intermittents $0 $300,000 $300,000 

MENA Resident (Jordan) FE Resident $0 $659,200 $659,200 

Pakistan BFS Intermittent $0 $300,000 $300,000 

Pakistan FE Resident $0 $700,000 $700,000 

Subtotal Middle East and North Africa $0 $4,059,200 $4,059,200 

CoFinancing TIATA

Team Advisor Category Amount Amount Total

ASIA

Indonesia TAX Project Coordinator + Intermittents $0 $475,000 $475,000 

Philippines FE Resident $0 $300,000 $300,000 

RegANE FE Intermittent $0 $200,000 $200,000 

Vietnam TAX Project Coordinator + Intermittents $0 $450,000 $450,000 

Vietnam BFS Combination (Res + Int) $0 $600,000 $600,000 

Subtotal Asia $0 $2,025,000 $2,025,000 
 43 

CoFinancing TIATA

Team Advisor Category Amount Amount Total

LATIN AMERICA AND CARIBBEAN

CAM Regional Training FE Intermittent $0 $430,000 $430,000 

Colombia TAX Intermittent $0 $117,647 $117,647

Costa Rica BUD Resident $0 $413,000 $413,000 

Costa Rica GDIM Resident $0 $550,000 $550,000 

Costa Rica TAX Project Coordinator + Intermittents $0 $350,000 $350,000 

Dominican Republic GDIM Intermittent $0 $347,291 $347,291 

Ecuador FE Resident $0 $300,000 $300,000 

Guatemala TAX Project Coordinator + Intermittents $0 $300,000 $300,000 

Haiti TAX Project Coordinator + Intermittents $250,000 $80,000 $330,000 

Honduras BUD Intermittent $0 $205,325 $205,325 

Honduras GDIM Resident $0 $450,000 $450,000 

Honduras TAX Project Coordinator + Intermittents $0 $375,000 $375,000 

Latin America SME Initiative BFS Intermittent $0 $320,000 $320,000 

Mexico TAX Project Coordinator + Intermittents $0 $182,353 $182,353 

Nicaragua GDIM Resident $300,000 $255,000 $555,000 

Nicaragua TAX Project Coordinator + Intermittents $200,000 $200,000 $400,000 

Paraguay BFS Resident $0 $575,000 $575,000 

Paraguay BUD Resident $0 $568,000 $568,000 

Paraguay FE Intermittent $0 $146,700 $146,700 

Paraguay GDIM Resident $0 $475,000 $475,000 

Subtotal Latin America and Caribbean $750,000 $6,640,316 $7,390,316 
 44 

CoFinancing TIATA

Team Advisor Category Amount Amount Total

SENIOR AND REGIONAL ADVISORS

Regional Advisor DC-Based BFS Regional $0 $100,000 $100,000 

Regional Advisor BUD Resident $0 $250,000 $250,000 

Regional Advisor MENA BFS Regional $0 $350,000 $350,000 

Regional Advisor: MENA GDIM Regional $0 $625,000 $625,000 

Regional Advisor: Africa/Middle East FE Regional $0 $650,000 $650,000 

Regional Advisor: Europe & Asia FE Regional $0 $550,000 $550,000 

Regional Advisor: Latin American 

Caribbean FE Regional $0 $307,500 $307,500 

Regional Advisor: DC-Based FE Intermittent $0 $282,500 $282,500 

Regional Advisors TAX 2 Regional Advisors $0 $570,000 $570,000 

Senior Advisor GDIM Regional $0 $360,000 $360,000 

Subtotal S/R Advisors $0 $4,045,000 $4,045,000 

OTHER FUNDED ACTIVITIES

Global FIU Analysis & Architecture FE 2 full-time advisors $0 $300,000 $300,000 

Subtotal Other $0 $300,000 $300,000 

GRAND TOTAL $1,208,464 $23,930,191 $25,138,655 
 45 

Table B

FISCAL YEAR 2008 Non-TIATA Sources of Funding 

Treasury International Affairs Technical Assistance (TIATA)

Fiscal Year 2008

Transfer

Purpose Source Category Amount

TA to countries of Eastern Europe (SEED Act-funded) USAID 632(a) $2,641,000 

TA to countries of the Newly Independent States (FSA-funded) USAID 632(a) $3,115,000 

Government Debt TA to Gov't of Afghanistan USAID 632 (b) $650,000 

Tax TA to Gov't of Haiti USAID 632(a) $250,000 

Government Debt TA to Gov't of Ghana USAID 632(b) $173,386 

Government Debt and Tax TA to Gov't of Nicaragua USAID 632 (a) $500,000 

TA to Gov't of Paraguay under MCC Threshold Country Plan USAID 632(b) $850,000

Budget and Banking TA to Gov't of Iraq STATE 632(b) $1,250,000 

Economic Crimes TA in Middle East/North Africa STATE 632(b) $500,000 

Economic Crimes TA to Gov't of El Salvador STATE/INL 632(b) $76,000 

Economic Crimes TA to Gov't of Haiti STATE/INL 632(b) $350,000 

Economic Crimes TA to Gov't of Mexico STATE/INL 632 (b) $922,482 

TA to Gov't of Sao Tome & Principe under MCC Threshold Country 

Plan MCC 632 (b) $4,330,947 

OTA Liaison to AFRICOM (Stuttgart) DOD MIPR $125,000 

Economic Crimes TA to Gov't of Cayman Islands

Gov't of Cayman 

Is. n/a $9,479 

Tax TA to Gov't of Honduras

Gov't of 

Honduras n/a $293,016 

Tax TA to Gov't of Lesotho Gov't of Lesotho n/a $144,182 

TOTAL $16,180,492