Fiscal transparency reviews (IMF). These use the code of good practices on fiscal transparency adopted by IMF in 1998. Diagnostic study of accounting and auditing (Asian Development Bank). Exante audits of PFM systems (European Commission). Assessments by CIDA, DFID, EU, ADB and other agencies. The preliminary results of the macro assessment are discussed with the agencies implementing the HACT framework, both to provide a summary of the results and to incorporate agency-specific experience and knowledge of the country into the final assessment. Deliverables The third party service provider summarizes the findings on the risks related to the use of PFM systems for cash transfers within the country in the macro assessment checklist (provided in Annex I). Qualifications of the Third Party Service Provider The third party service provider should be experienced in performing assessments similar to a macro assessment and assessing risks related to PFM systems. The provider should also have financial management experience and knowledge of the United Nations system and the development sector. Curriculum vitae (CVs) of all members of the assessment team should be provided. They should include details on engagements carried out by the staff members, including ongoing assignments indicating responsibilities assumed by them, and their qualifications and experience in undertaking similar assessments. Items to be Provided to the Service Provider before Fieldwork Begins The agency provides the following documentation before starting fieldwork: Summary of primary programme initiatives and IPs in the country; Details of assessments previously performed in the country; and Any other documentation that may help the provider better understand the country context from a United Nations perspective. The third party service provider should review the information received before performing the assessment. Annex 1. Macro Assessment Checklist General Overview of Macro Assessment Country being macro assessed
often poorly performed. monthly. Quality is sometimes poor. Exceptions exist but appropriate follow-up action is taken in all cases. 6 Transfer of cash resources Cash transfers from central/regional levels to project level take more than one month. Cash transfers from central/regional levels to project level take two to four weeks. Cash transfers from central/regional levels to project level take one to two weeks. Cash transfers from central/regional levels to project level take a week or less. 7 Reporting of cash and asset position to government Analysis of cash and asset position made to government contains significant omissions. Full analysis of cash and asset position is made to government. 8 Financial audit / SAI auditor general *For decentralized governments, consider consolidated audit coverage, if available. External audit covers less than 80% of central government expenditures. External audit covers 80% to 90% of central government expenditures External audit covers 90% of central government expenditures. External audit covers all central government expenditures. 9 SAI independence SAI reports to government agency. SAI reports to legislature (or equivalent justice system). 10 Audit standards applied by the SAI SAI applies national audit standards, which are significantly inconsistent with international standards. SAI applies national standards, which comply with international standards. SAI applies international audit standard.
performance is generally poor. problems, generally the system is stable. 16 Environmental conditions Natural disasters or significant events regularly occur that displace citizens and resources. Natural disasters or significant events that displace citizens and resources rarely or never occur. 17 Exchange rate volatility Foreign exchange rates fluctuate significantly on a daily basis. Foreign exchange rates fluctuate significantly on a weekly or monthly basis. Foreign exchange rates have remained relatively consistent, with the exception of significant one-off fluctuations. Foreign exchange rates do not fluctuate significantly. 18 Existence of a black market Black market is prevalent and influential in the country. market exists and has significant influence in the country. market exists in the country, but effective actions are being taken to eliminate or limit its influence in the country. Black market may exist but does not have an influence in the country. 19 <Any other specific items identified by agency> Examples: Inflation, reliability of statistics bureau, parliamentarian control, unemployment rate, transparency of information collection