Strengthening the Financial Management and Control in Georgia - Evaluation Strengthening Financial Management and Control Georgia new Strengthening the Financial Management and Control in Georgia The contribution "Strengthening the Financial Management and Control (FMC) in Georgia"  is an agency-to-agency cooperation between the Central Harmonisation Unit (CHU)  at the Ministry of Finance (MoF) in Georgia and the Swedish National Financial Management Authority (ESV).

The objective of the project is to increase the knowledge and strengthen the ability to apply managerial control and thus increase effectiveness and efficiency of public entities in Georgia.

The project will work over 26 months to support a) CHU's institutional capacity development and b) four central ministries that have started to implement Financial Management and Control (FMC). FMC is complementary to the ongoing establishment of programme budgeting in Georgia. FMC is concerned with the establishment of effective management systems required to achieve the potential of programme budgeting. 

The aim of the FMC reform in Georgia is to provide assurances that spending of public funds meet the objectives of the Government and are managed in accordance with laws and regulations. This means e.g. that civil servants responsible for the use of public funds both follow the prescribed standards of internal control and are using those funds as efficiently and effectively as possible.

The main problem this project addresses is the lack of managerial accountability. At present the system of accountability and responsibility by managers at different levels is not well developed in Georgia. This project addresses the following causes; lack of delegation; insufficient objective setting; weak risk management; inexplicit information and reporting systems and the vague role of the financial/economic department. Projektet "Strengthening the Financial Management and Control (FMC)" är ett myndighetssamarbete mellan Central Harmonisation Unit (CHU) inom det georgiska finansministeriet och Ekonomistyrningsverket, ESV.
Projektets mål är att öka kunskap och kapacitet att tillämpa ett moderniserat system för finansiell styrning och kontroll  och därigenom öka effektiviteten inom den georgiska statsförvaltningen

Projektet kommer under 26 månader att främja utveckling av a) CHU:s organisatoriska kapacitet, samt inom b) fyra centrala ministerier som har börjat implementera ett nytt system för finansiell styrning och kontroll. Insatsen förstärker och kompletterar den pågående budgetreformen som omfattar etablering av  programbudgetering i Georgien. FMC-insatsen verkar för etableringen av effektiva managementsystem, vilket utgör en väsentlig byggsten i riktningen mot  ett väl fungerande system för programbudgetering.

Samarbetet kring intern styrning och kontroll  verkar för att förvaltningen av offentliga medel främjar regeringens mål samt sker i enlighet med lag och regelverk. Detta innebär till exempel att en statstjänsteman som beslutar om nyttjande av  statliga medel ska både följa föreskrifterna för intern kontroll och använda medlen ändamålsenligt.

Ett huvudproblem som projektet adresserar gäller brister i förvaltningssystemet gällande ledningsansvar och ansvarsutkrävande. Det georgiska systemet har en kvarvarande stark centralisering med bristande förutsättningar för ansvarsutkrävande och ansvarstagande hos ledare på olika nivåer utvecklat. Projektet riktar sig mot följande svagheter: brist på delegering; otillräcklig målsättning; svag riskhantering; otydlig informations- och rapporteringssystem samt en otydlig verksamhetsroll  för finans- och ekonomienheter. The main objective of the current contribution is as follows:

Development of managerial control arrangements in Pilots, to explore and improve within the Pilot organisations the managerial accountability and other changes, including information flows, required to ensure that FMC is effectively implemented and that FMC can deliver the benefits expected. Reaching the objective will result strengthening the ability of Georgian authorities to apply managerial control and thus increase effectiveness and efficiency of public entities in Georgia.

Within the main objective, the sub-objectives, related to activities, are as follows:

- Each Pilot ministry should possess an adapted implementation plan for the activities;

- Management structures should be designed to deliver the policy objectives efficiently and effectively to specified standards and within defined timescales;

- All managerial arrangements should include the establishment of appropriate accountability requirements for financial and operational performance;

- Managers should take responsibility for the specification of the internal control systems and for the effectiveness of those systems by introducing risk management;

- The manager should define the specific information (financial and performance) needed to ensure that objectives are being achieved in accordance with the principles of economy, efficiency and effectiveness and in accordance with plans and programmes;

- The managers at different levels should be aware of the budgetary requirements and participate in the budget process;

- The Head of finance should be the expert on FMC and the person within the ministry to turn to when advice is required;