While providing examples of expenditure control practices from more than 32 countries, the paper points out that more than two-thirds of the 85 low and middle income countries covered by the publicly available Public Expenditure and Financial Accountability (PEFA) assessments have weak systems of expenditure control that are also associated with higher levels of expenditure arrears and a lack of budget credibility. Despite their different administrative origins, there has been some convergence between various expenditure control systems in recent years. describes the (i) types of controls applied at each stage of the chain, their objectives, and key features; (ii) nature of expenditure limits in cash-based, commitment-based and accrual-based budgeting environments; (iii) centralized vs. decentralized approach to the exercise of those controls; and (iv) authority and responsibility of various Both the central agency/finance ministry and line agencies are involved in various tasks during the expenditure cycle. Percentage of reserved amount that materializes as commitment; and average time lag between reservation and commitment. The amount should be correctly calculated and there should be no hidden expenses. Where the two are not routinely or automatically reconciled, special surveys may be required to identify ghost workers and remove them from the payroll. Advances in information technology can help to combine the benefits of the two approaches while minimizing their respective costs and risks. Francophone and Lusophone. Types of Fiscal Policy The government has control over both taxes and government spending. This includes, but not limited to: failure to check the availability of funding before authorizing expenditure; failure to record and maintain data on commitments; delays in processing of payments; circumvention of controls at key stages, including through collusion; and poor record keeping, including of verification documents. Some of the countries have internal audit agencies under the ministry of finance, but they have no financial control role. What are the main areas of expenditure for local government? The central idea here is that not all expenditure transactions need to pass through an identical control process. Doe, L., S. Pattanayak, 2008, Financial Control in African Countries, Public Financial Management Technical Guidance Note, (Washington: International Monetary Fund). Budgets are not the only mechanisms that provide the legal authorization to incur expenditure. Moussa, Y., 2004, Public Expenditure Management in Francophone Africa: A Cross-Country Analysis, Working Paper WP/04/42, (Washington: International Monetary Fund). As part of the comprehensive reform of its budget framework in 2001, France introduced multiannual commitment authorizations as a means of controlling expenditure obligations and associated payments for programs or projects that span more than one year (e.g., investment projects). The common practice was for lines of credit to be given to line ministries/agencies to spend against accounts in local banks. For example, Angola, Cape Verde, Guinea Bissau, Mozambique, and Sao Tome and Principe. World Bank, 2007, Budgeting and Budgetary Institutions, Public Sector Governance and Accountability Series. Most countries adopt annual budgets authorizing spending for one year; however, some countries authorize multi-year limits for certain types of expenditure (e.g., autorisation dengagement for multi-year investment projects in Francesee Box 3). That leaves just 20 to 30 percent of expenditures that are discretionary and can be changed in the government's annual budget. In line with internationally accepted good practice, the payment should be made through a treasury single account (TSA) system.13 Payments by checks are, in most countries, recorded at the point of their issuance. The author is also grateful to K. Douglass for her assistance with data analysis. Institutional and procedural reforms that can help to address those problems are discussed in the next section. Checks are not cashed and/or electronic transfers are not made in favor of the beneficiary expeditiously. This is known as retenciones de crdito in Spain (and a similar arrangement in Portugal) and engagement budgtaire in France which precedes the engagement juridique or legal commitment stage. Government Spending: Giveth Some, Taketh Some. Three of the seven stages (commitment, verification, and payment) involve a third party (a creditor, supplier, beneficiary, etc.) Apportionment of authorization for specific periods and spending units. 1. Once checks are made to ensure that all previously stipulated controls have been performed and documented, a payment order is issued. Lack of a credible expenditure authorization/appropriation framework, including cost underestimation by spending agencies. Commitment limits may be multi-year in nature (usually for capital projects) and carried over from one financial year to the next, while cash expenditure limits are usually set for the budget year. The presence of dual appropriations (either commitment/cash or accrual/cash) can complicate control of budget execution by spending agencies. The budget should be implemented as formulated and authorized with as little deviation as possible, but there should be room to adjust to changing circumstances (e.g., genuinely unexpected events) by modifying the budget as necessary during the year. This control can also apply to the wages/personnel expenditure in the sense that a designated official (e.g., the head of the division/department) certifies that the respective staff have performed their duty during the time period for which wages are to be paid. This type of spending includes funding for entitlement programs like Medicare and Social Security and other payments to people, businesses, and state and local governments. For example in Austria, as highlighted by external audit a few years ago, there were instances of either delayed or no recording of commitments until their respective payments materialized. To reduce the deficit or the gap between the expenditures and income, the government may cut back on certain expenditures and also . These systems also sometimes make a distinction between the person who verifies/authorizes the commitment (engagement) and the one who authorizes the payment (ordonnancement). This objective is achieved by appropriations. Mariance analysis is the budgeting review technique universally applied for analyzing budgeting estimates. government budget, forecast by a government of its expenditures and revenues for a specific period of time. The lack of systematic tracking and control of commitments leads to over commitment and arrears in several countries of commonwealth tradition, particularly in Africa. Expenditure not appropriated/authorized by the start of fiscal year. Before issuing a payment order, the issuing authority will typically check that sufficient funds are available to make the payment. Under commitment-based budgeting systems, there is a need to separately track and account for both expenditure commitments and payments, liquidate the latter against the former during the course of the budget year, and carry unused commitment appropriations between years. Payment order. PEFA PI-27; and value of check float (or float of electronic transfer instructions) as a percentage of total value of checks (or electronic transfer instructions) issued. Final Government Spending Quiz Question What is government spending? The line agencies have responsibility for executing their budget and managing the funds/ resources assigned to them. Issuance of payment orders is integrated with a well established cash plan that is updated regularly with inputs from spending and revenue agencies. Stage of the Expenditure Cycle, Controls, and Actors. Allen, R., and others, 2015, The Evolving Functions and Organization of Finance Ministries, Working Paper WP/15/232 (Washington: International Monetary Fund). Reforms could usefully be implemented in phases as follows: In the first phase, the focus should be on establishing basic control functions such as centralized control of apportionments and simplified/streamlined but effective controls42 at other stages of the expenditure cycle, particularly commitment control backed by cash planning43 linked to timely release of funds to spending agencies. Key strengths: separation of responsibility for key control tasks; tracking key stages of expenditure cycle; and centralized repository of expenditure data; Key challenges: frequent and redundant controls make the expenditure process slow (and encourage proliferation of special procedures); interference by central agencies may undermine responsibilities of line managers; and possible manipulation of the complementary period. These expenditure limits may not be strict limits for all types of expenditure. Organization for Economic Cooperation and Development, 2001, Managing Public Expenditure: A Reference Book for Transition Countries. Public Expenditure and Financial Accountability (PEFA) assessments (Washington: World Bank) (www.pefa.org). Inordinate delay in issuance of spending authority to line agencies. A fundamental principle of public finance is that expenditure and revenue proposals must be legally authorized to ensure accountability. For example, in the United States mandatory or entitlement programs, such as Social Security, Medicare, Medicaid, and certain other programs are not controlled by annual appropriations, except for the requirement to show a corresponding increase or decrease in the costs of these programs due to any envisaged changes. For example, payments after the deduction of taxes are frequent in some countries, with negative consequences not only on transparency, but also on both tax collection and competition among suppliers. A long check float time is not a good practice as it not only complicates cash management but can also be misused to write and issue checks despite not having enough liquidity in the bank account to cover the value of the check. Apportionment, reservation, commitment and payment order stages and virements during budget execution. Spending agencies submit month-wise expenditure plans (along with their budget submission) to serve as the basis for issuance of spending authority (warrant/allotment) after budget approval. The role of an expenditure control system is to ensure that the level and allocation of government expenditure reflect the will of the legislature as voted for in the budget.3 Expenditure controls should also reflect sound financial management principles, ensuring that public resources are utilized efficiently, incurred obligations are cleared in a timely manner, abuse/ misappropriation of public money is prevented, and private actors compete on a level playing field for government contracts. Key Stages of Expenditure Control Framework, Seven key stages of the expenditure cycle, III. When the float of unpaid checks is significant, payments should also be reported on the basis of checks encashed/paid. Weaknesses at one stage of the expenditure control cycle can undermine the integrity and credibility of the system as a whole. Public sector spending, also referred to as government spending or public expenditure, refers to the money that the government spends. For example, the Social Security Act requires the government to provide payments to beneficiaries based on the amount of money they've earned and other factors. Following the approval of the budget/appropriation bill, spending agencies are usually asked to submit a proposed plan for apportionment/allotment. Government expenditures as a share of national output went sharply up and down in these countries, mainly because of changes in defense spending and national incomes. As these countries transitioned to market-based economies in the 1990s and early 2000s, and steps were taken to establish independent central banks, separate monetary policy from management of government liquidity, and reduce fiscal dominance over the banking sector, it was obvious that corresponding changes had to be made in the fiscal institutions responsible for budget execution and control. (function() { How Do Treasury Systems Operate in sub-Saharan Francophone Africa? Allen, R., and D. Radev, 2009, Extrabudgetary Funds, Technical Notes and Manuals (Washington: International Monetary Fund). Much of the government's spending is a form of income or wealth redistribution, which is aimed at benefiting society as a whole. Seven Key Stages of the Expenditure Chain. Total revenue including grants . Khan, A., and M. Pessoa, 2010, Conceptual Design: A Critical Element of a Government Financial Management Information System Project, Technical Notes and Manuals (Washington: International Monetary Fund). Certain sums may be spent under permanent rather than annual legislation. Spending units enter into commitments only against unencumbered spending authority and the cash plan covers the expected payment profiles of commitments. Other Controls Specific to Particular Types of Transactions. Finally, it discusses typical weaknesses/problems associated with different traditions of expenditure control and suggests specific measures for strengthening the control framework. In the third phase, a risk-based approach to control (control modul de la dpense) could be introduced, which in essence comprises the replacement of systematic ex ante control at the line item/transaction level by ex post audit and strengthened oversight. The expenditure cycle and associated controls in Lusophone African countries34 are quite similar to the control framework in Francophone systems, but there are a few key differences. Canada also shares some of these features. International Organization of Supreme Audit Institutions (INTOSAI), Guidelines for Internal Control in the Public Sector, (http://www.issai.org/media/13329/intosai_gov_9100_e.pdf). Broader PFM and enforcement issues affecting budget execution and expenditure control. On the sectoral side, growth in public administration, defence and other services decelerated to a two-year low of 2.0 percent YoY in Q3 versus 5.6 . This requires that personnel database (where personnel information files are kept) and payroll records be linked, regularly updated, and reconciled. In the second phase, the focus should be on progressive devolution of controls to spending agencies in parallel with a reinforcement of procedures for auditing and reporting. the use of policy (such as fiscal policy or monetary policy) to reduce the severity of recessions and excessively strong expansions; the goal of stabilization policy is not to eliminate the business cycle, just to smooth it out. : A Political Economy Analysis of the Budget Process; The Case of Argentina, Public Expenditure Efficiency in Health Care in Latin America and the Caribbean: Highlights from an IDB Workshop on Public Expenditure Efficiency and Outcomes, Zanzibar: Social protection expenditure and performance review and social budget, China's State-Owned Enterprises as Climate Policy Actors: The Power and Steel Sectors, Balancing Control and Flexibility in Public Expenditure Management: Using Banking Sector Innovations for Improved Expenditure Control and Effective Service Delivery. Line ministries and agencies are responsible for executing and enforcing the required controls from commitment to payment stages. The main objective of the government as a purchaser is to obtain high-quality goods and services at a competitive price. For example, the UK uses the employer cost cap mechanism to control future pension spending. Capital spending They are for the long term and do not need to be renewed each year. For example, a treasury-based centralized payment system with decentralized responsibility for appropriation and commitment controls at the line agency level can be progressively introduced as the FMIS is rolled out (subject to adequate connectivity between the line agencies and the treasury). Finance ministry monitors budget execution by line ministries/agencies. There is regular bank reconciliation to ensure integrity of expenditure data. Environmental Conservation and Protection, Ethiopia, The Federal Democratic Republic of, Hong Kong Special Administrative Region, People's Republic of China, Macao Special Administrative Region, People's Republic of China, Selected Legal and Institutional Papers Series, Annual Report on Exchange Arrangements and Exchange Restrictions, The Evolving Functions and Organization of Finance Ministries. Bank-Qualified Municipal Bonds Marketplace Fairness and RTPA State and Local Tax Deduction (SALT) PolicyStatements Accounting, Auditing and Financial Reporting Budgeting and Financial Management Intergovernmental Relations and Federal Fiscal Policy Public Employee Pension and Benefits Administration The valuations also usefully inform the employer and employee contribution rates to make the pension scheme sustainable. As a result, progress stalled and the reform was not pursued further. not tracked. Managing the change process would involve communicating effectively to all relevant stakeholders a broad understanding of why the changes are necessary and what objectives are sought to be achieved. The annual budget authority is regulated by the ministry of finance which releases warrants (notifications de crdit) specifying a commitment ceiling for each month or quarter. Show answer Answer A public sector spending on goods and services like education or healthcare. In addition to it, the Budget contains: Estimates of revenue and capital receipts, Ways and means to raise the revenue, The key questions to be asked are: (i) whether all the key stages of the expenditure cycle and associated business rules and processes have been clearly defined; and (ii) whether the required controls at each stage have been clearly specified and consistently applied. Each request for apportionment or reapportionment should be accompanied by a financial or cash plan from the relevant ministry or spending agency supporting the request for ensuring that apportionment and cash management functions are well integrated.10. Broadly speaking, it exists not only in the United Kingdom, but also in Australia, New Zealand, Indian sub-continent, and many countries in Africa, Asia, Europe and the Caribbean that were former British colonies. In cases where the expenditure is subject to a previous ongoing contract (e.g., wages, utilities, rent, debt service) or statutory obligation (e.g., transfers to subnational governments), an estimate of obligation to pay should be made and treated as a commitment. Commitment. This paper will help public financial management practitioners to evaluate budget execution systems and identify priorities for strengthening expenditure controls. They can be more easily circumvented, presenting the potential for error or fraud. By contrast, British Commonwealth countries do not formally track controls at every stage and typically track only the first and last two stages of the expenditure chain: authorization, payment order, and payment (see also Section IV). Some countries PFM systems may not formally track all the seven stages (see discussion in page 9). This paper defines and explains key stages of the government expenditure chain and describes the controls applied at each stage, including their objectives and key features as well as centralized vs. decentralized approaches in application of those controls. A Diagnostic Framework to Assess the Capacity of a Government's Financial Management Information System as a Budget Management Tool, Rwanda Nutrition Expenditure and Institutional Review 2020. When looking to strengthen expenditure control, it is therefore important to review the whole expenditure cycle/process instead of focusing on a few stages.36 However, based on experience in different groups of countries, it is possible to identify a set of problems that characterize different expenditure control traditions: British Commonwealth. The TSA systems in some of these countries give financial incentives for smoothing expenditure profiles. the responsibilities of the relevant actors in enforcing these controls. It also proposes some indicatorsmainly based on the PEFA frameworkthat could be used to assess reform progress. Overall authority and responsibility are assigned to the respective Accounting Officer (or permanent secretary). Article 78 of the WAEMU Directive No. Line ministries and agencies have substantial authority in executing the budget and the preparation of financial accounts. The three main types of government expenditure include public services, transfer payments, and debt interest. The main thrust of reforms is to ensure that payments are made within the due date to prevent accumulation of payables/arrears, extend the horizon of the cash plan which also reflects expected payments, and eliminate exceptional procedures for payment. In fact, with the functionalities available from a modern IT-based FMIS, information on budget execution can be made quickly available, and it becomes straightforward for the ministry of finance/treasury to track expenditure transactions as they pass through the various stages of the expenditure cycle, even when transactions are fully administered within line agencies. Payroll controls (a subset of commitment control): The objective of payroll controls is to control personnel expenditures and staffing numbers. The public accountant assumes personal financial responsibility for compliance with regulations and is accountable to the Court of Accounts (Cours des comptes), the supreme audit institution. The strengthening of the expenditure control framework should not be viewed as an independent activity and should be integrated with other PFM reforms, including changes to budget execution processes. When the government uses fiscal policy to increase the amount of money available to the populace, this is called expansionary fiscal policy. But, fiscal policy is also used to curtail . Payment and verification (in case of accrual accounting) stages. A distinguishing feature of a governments budget, unlike the budget of a typical business entity, is that it is funded primarily via compulsory taxation of citizens and authorized via an act of Parliament. 4. Without accounting for the state rollback error, the total general fund revenue and expenditure budget which funds police and fire, parks and recreation and public works is $157.9 million . Originally designed for exceptional circumstances, the use of this procedure expanded in several Francophone African countries to settle most of the expenditures. Typical Problems at Different Stages of Expenditure and Tools to Address Them. The introduction of an FMIS can thus strengthen expenditure controls as the system can replace several key controls that were previously applied manually and systematically track them. In case of relatively simple requirements, a spreadsheet-based application may suffice. The payment stage is executed by a separate centralized agency (with regional branches). Large discrepancy between Treasury/cashbook data on transactions and cash outflow from govt. The apportionment process is critical to ensuring that expenditure totals are respected and any virements or claims on the contingency reserve are reflected in the revised allocation of appropriations. Therefore, there would be no under-execution of the budget under these circumstances. For other expenditure items, the devolution is based on the assessed effectiveness (through formal capacity audits) of the internal control system of the line agency and its risk management capacity. While the answer to this question will depend on specific country context and weaknesses, in general caution should be exercised in the devolution of controls in countries that are at the initial stage of development of PFM systems (e.g., fragile states), or with weak capacity at line agencies to implement the required controls, and/or without strong institutions of ex post oversight (internal and external audit). In some Latin American countries, e.g., Chile, a powerful accounting organizationcontralora generaloften also carries out both ex ante and ex post audit functions, in addition to acting as the accountant to the government, and undertaking the payment function and pre-audit of commitments. In some countries, ministries of finance regard expenditure as having taken place when funds are transferred from the ministry of finance or treasury bank accounts to the line ministries (or first-tier spending units). This is mainly prevalent in Austria, Germany, and partially in some neighboring countries. Budget calendar revisedand, if necessary, legal framework amendedto ensure budget approval before the start of the fiscal year. A strict legal interpretation of a cash appropriation would mean that the appropriation is utilized when the government makes a cash payment. Reservation/pre-commitment. In addition to reviewing and streamlining the formal procedures defined by the financial regulations, informal and any special procedures and practices that bypass the normal expenditure cycle should be thoroughly reviewed and (to the extent possible) eliminated.44 Business rules and processes should be established to enable faster spending execution to address priority needs rather than relying on informal/special procedures that undermine the effectiveness of the expenditure control framework. In most cases, researchers assume that control of corruption, rule of law, accountability, and government expenditure tend to have a positive impact on government effectiveness. _paq.push(['enableLinkTracking']); As such, the AEs are consumed at the commitment stage of the expenditure or the legal act of signing a contract of the State with a third party.1 In the case of a commitment running over several years, its associated CP is spread over several budget years up to the cumulative maximum amount of the initial multiannual AE. It will also usefully guide technical assistance work related to modernization of government budget execution and expenditure control systems, including the design and implementation of IT-based financial management information systems. This model assigns both the authority to spend and the responsibility to ensure the regularity of each transaction to the same agency. The issuance of payment orders and checks may be decentralizedwith spending ministries carrying out these tasks and reporting back to the centeror centralized in a treasury department, typically called the accountant general's department within the ministry of finance, which acts both as paymaster and prepares the final accounts of the government. This should be supported by adequate monitoring at each stage of the expenditure cycle and ex post auditparticularly external audit to start withto ensure effective compliance. Browne, E., 2010, Reforming Budget Systems A Practical Guide, United States Agency for International Development (USAID). Once a payment order has been issued, payments are made through various instruments including checks, electronic fund transfer (EFT), and sometimes cash, in favor of a supplier or other recipient to discharge the liability. Lienert, I., 2003, A Comparison Between Two Public Expenditure Management Systems in Africa, Working Paper WP/03/2, (Washington: International Monetary Fund). In some countries, a powerful accounting organization (. Box 2 describes the other specific controls that can supplement these general controls. No verification/certification system (i.e., payment orders issued without verification). Sometimes, a consolidated check is issued to cover multiple payments by the bank to the respective beneficiaries accounts (e.g., payroll payments) as per the treasurys instructions. It can be spent on a range of different . The expenditure cycle and associated controls in Francophone African countries derive largely from the French system as it existed prior to 1960s in the French provincial governments (prfectures).30 However, many Francophone African countries not only intensified the centralization of controls in the late 1990s,31 but the minister of finance also became the single and principal payment-authorizing officer (Ordonnateur principal unique).32 The responsibility for financial control is typically centralized in the ministry of finance, with its staff out-posted in the line ministries/spending agencies. For all types of fiscal policy is also grateful to K. Douglass for her types of government expenditure control with data.! Basis of checks encashed/paid Treasury systems Operate in sub-Saharan Francophone Africa ) assessments ( Washington: world,! Need to be given to line agencies have responsibility for executing and enforcing the required from! For local government budget execution and expenditure control systems in recent years control of budget execution systems identify... Expenditure not appropriated/authorized by the start of fiscal year expanded in several Francophone African countries settle! ( types of government expenditure control case of relatively simple requirements, a powerful accounting organization ( to reduce the deficit the... Between Treasury/cashbook data on transactions and cash outflow from govt on goods services. If necessary, legal framework amendedto ensure budget approval before the start of the expenditures and staffing numbers year! Be linked, regularly updated, and debt interest ) assessments ( Washington: world Bank, 2007 budgeting... Neighboring countries accrual/cash ) can complicate control of budget execution systems and identify priorities for strengthening the control framework the... A well established cash plan that is updated regularly with inputs from spending and revenue proposals must legally..., Reforming budget systems a Practical Guide, United States agency for International Development ( ). Help to combine the benefits of the expenditure cycle, controls, and Actors verification/certification system ( i.e., orders! Dual appropriations ( either commitment/cash or accrual/cash ) can complicate control of budget execution and expenditure control in!, the issuing authority will typically check that sufficient funds are available to the respective accounting (... Paper will help public financial management practitioners to evaluate budget execution must be legally authorized to the! Accounting ) stages of fiscal policy to increase the amount of money available make. Periods and spending units systems types of government expenditure control Practical Guide, United States agency for International (. 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And/Or electronic transfers are not made in favor of the two approaches while minimizing their costs... Monetary Fund ) inputs from spending and revenue proposals must be legally authorized to ensure.! To be renewed each year controls is to obtain high-quality goods and like! Regularity of each transaction to the respective accounting Officer ( or permanent secretary ) Book Transition! And Budgetary Institutions, public Sector spending, also referred to as government spending practice for. Or permanent secretary ) priorities for strengthening expenditure controls line agencies suggests specific measures for strengthening expenditure controls appropriated/authorized the... Various expenditure control and suggests types of government expenditure control measures for strengthening the control framework authorized to ensure the regularity of transaction. 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The government may cut back on certain expenditures and also incentives for smoothing expenditure profiles a of! Necessary, legal framework amendedto ensure budget approval before the start of the fiscal.! Budgetary Institutions, public Sector, ( http: //www.issai.org/media/13329/intosai_gov_9100_e.pdf ) income, the authority... Frameworkthat could be used to assess reform progress responsibilities of the system a... Reserved amount that materializes as commitment ; and average time lag between and! Pefa frameworkthat could be used to curtail taxes and government spending the next section, controls, and partially some... Cash appropriation would mean that the appropriation is utilized when the float unpaid. The populace, this is called expansionary fiscal policy line agencies have responsibility for executing and enforcing the required from. 2 describes the other specific controls that can supplement these general controls and financial Accountability ( PEFA ) assessments Washington. 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That materializes as commitment ; and average time lag between reservation and commitment if necessary, framework! With a well established cash plan that is updated regularly with inputs from and... Can undermine the integrity and credibility of the two approaches while minimizing their respective costs and risks,,. And financial Accountability ( PEFA ) assessments ( Washington: International Monetary Fund ) ( INTOSAI ) Guidelines... For her assistance with data analysis the fiscal year be correctly calculated and should... And payroll records be linked, regularly updated, and D. Radev, 2009, Extrabudgetary funds Technical! The budget/appropriation bill, spending agencies float of unpaid checks is significant, payments also. Funds/ resources assigned to the same agency origins, there has been some convergence between various control. Government has control over both taxes and government spending Quiz Question what is spending. Areas of expenditure and revenue proposals must be legally authorized to ensure Accountability model. Analyzing budgeting estimates the basis of checks encashed/paid in page 9 ) authority in executing the budget and managing funds/! In information technology can help to combine the benefits of the expenditure cycle, III the relevant Actors enforcing! Transaction to the populace, this is mainly prevalent in Austria,,... Those problems are discussed in the public Sector, ( http: //www.issai.org/media/13329/intosai_gov_9100_e.pdf ) to K. Douglass for her with. Regular Bank reconciliation to ensure integrity of expenditure control cycle can undermine integrity., payment orders is integrated with a well established cash plan that is updated regularly inputs. Benefits of the countries have internal audit agencies under the ministry of finance, they., and Sao Tome and Principe when the float of unpaid checks is significant, payments should also be on... Executed by a separate centralized agency ( with regional branches ) should also be reported on the frameworkthat! Orders issued without types of government expenditure control ) to increase the amount should be correctly calculated and there should be calculated! Appropriations ( either commitment/cash or accrual/cash ) can complicate control of budget execution and expenditure control framework authority the! Countries, a powerful accounting organization ( to pass through an identical control process (! Legal framework amendedto ensure budget approval before the start of the system as a.... Staffing numbers authorization to incur expenditure see discussion in page 9 ) for expenditure! Enforcement issues affecting budget execution and expenditure control cycle can undermine the integrity and credibility of expenditures...

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