agencies defined and adopted. Board of Directors Adoption of a decree establishing the mandatory participation as observer of a representative of the oversight institution (DGTF of SOE Oversight) in the Board of each Public Agency or SOE. Determination of professional criteria for the selection of board members. Adoption of standardized rules for attendance fees in Board of Directors. Training of members of boards of directors. Assessment of board governance and operational practices. Transparency and audit of SOEs and EPAs Budget allocation for inspections and special audits of SOEs and Public Agencies. Determination by the DGTF of strategic and sizable EPAs to be audited by external firms. Stock taking of audits of SOEs (number of audits available, comparisons between companies). 2012 audits of SOEs published and available on the website of the DGTF or the Ministry of Finance. Follow-up of recommendations of statutory audits by the DGTF. Statutory Audits carried out by external firms for strategic EPAs. Mechanisms to improve timeliness of statutory audits. Training and accreditation of civil servants appointed as statutory auditors in budgeting and public accounting. Annual publication of statutory audits for all forms of state owned enterprises (EPICs and SCPs). Publication by DGTF of an annual report on the portfolio of SOEs and Public Agencies. Public Agencies (EPAs) internal control Job description with profile requirements. Recruitment procedures defined and adopted. Standardized and integrated financial management systems adopted for all EPAs and accessible to the General Directorate. Manual of internal control procedures for EPAs adopted. Intensive training of administrative and financial units of EPAs in terms of financial management, budgeting, and public procurement. Regular financial management and activity report transmitted to the DGTF.
Area of intervention Within 3 months after Action Plan validation Within 12 months after Action Plan validation Within 18 months after Action Plan validation Expected Results 3 years after Action Plan validation INSTITUTIONAL FRAMEWORK FOR FINANCIAL OVERSIGHT Institution building of the financial oversight body Decree establishing a DGTF for Oversight of SOEs and Public Agencies within the Ministry of Finance. Appointment of the Head of the DGTF. Appointment of a task force complementing current staff resources. Public Finance reform plan adjusted to include current proposed options. Strategic Plan of DGTF approved and defining: (i) detailed mandate and functions; (ii) detailed organogram and job descriptions; (iii) staffing, equipment, and budget needs; (iv) training needs; and (v) expected milestones and achievements for the following 3 years. DGTF manual of procedure adopted. Additional recruitment initiated. Preparation of a National Strategy for SOEs and Public Agencies initiated. DGTF staffed as per Strategic Plan recommendations. Staff training program initiated. Website providing information on SOEs and Public Agencies at General Directorate of MEF. A concept paper on revised model of ownership policy developed. National Strategy for SOEs and Public Agencies developed and adopted. DGTF operational and ensuring financial oversight of SOEs and Public Agencies. Annual Reports on implementation of National Strategy for SOEs and Public Agencies. FINANCIAL INFORMATION AND FISCAL RISK MONITORING Financial Information Notice Letter from Minister of Finance to all SOEs and Public Agencies requiring transmittal to the DGTF of all 2010 to 2012 audits and financial statements within a month. Comprehensive financial and fiscal database prepared by the DGTF for (i) each individual SOE and Public Agency; and (ii) consolidated portfolio. On-going financial analysis of SOEs/Agencies financial statements carried out by the DGTF. Conducting a comprehensive analysis of taxation of SOEs. DGTF connected to financial management system of Public Agencies.
Budgeting of para-statal organizations DGTF responsibilities for SOE/Agencies budgeting adopted. DGTF provides inputs and clearance to DGB on N+1 budget for SOEs and Agencies. DGTF provides inputs and clearance to DGB on subsidies and other transfers to para-statal organizations (SOEs and public agencies). Regular contribution to budget preparation of SOEs/Agencies. Dividend policy defined and enforced. Fiscal Risk Monitoring Fiscal monitoring methodology defined and adopted by the DGTF. Available consolidated portfolio report on aggregate fiscal risk for SOEs and Agencies prepared by the DGTF. Analysis of existing SOEs cross-debts initiated by the DGTF. Consider establishing clearer fiscal rules that create incentives for monitoring of SOE finances, such as deficit targets including SOEs. Effective fiscal monitoring of SOEs/Agencies. Outstanding cross-debts settled. Preparation of annual consolidated SOEs/Agencies portfolio fiscal risk report. Quantification of contingent liabilities. OTHER GOVERNANCE DIMENSIONS Development of advisory role in performance monitoring of DGTF Procedures are defined for coordination between DGTF and Sector Ministries. Training to DGTF staff in design and monitoring of performance agreements. DGTF works jointly with and provides support to Sector Ministries in the preparation of SOEs/Agencies performance agreements. Adoption of performance agreements is generalized for major SOEs and Public Agencies. Legal Framework for Detailed legal review conducted on the basis of 1990 Ordinance updated. Comprehensive legal framework defining financial