USING GOVERNMENT CHART USING GOVERNMENT CHART OF ACCOUNTS FOR OF ACCOUNTS FOR TRACKING AID FLOWS AND TRACKING AID FLOWS AND EXPENDITURES IN THE EXPENDITURES IN THE BUDGETBUDGET

Presentation prepared for the ICGFM WINTER CONFERENCEBy: Ms Tithokoze Carolyn Samuel Ministry Of Finance-Malawi Budget Division6th to 8th December, 2010

CONTENTCONTENT Country Policy Document MGDS

Themes Malawi Government Priority Areas as

outlined in the MGDS Linkage with national budget

Malawi Chart of Accounts Tracking donor resources in the budget Some Donor codes Challenges Prospects for the future Conclusion

MGDS THEMESMGDS THEMESSustainable Economic GrowthSocial Protection and Disaster Risk Management

Social DevelopmentInfrastructure developmentImproved Governance

MGDS PRIORITY AREASMGDS PRIORITY AREAS Agriculture and Food Security Greenbelt Irrigation and Water Development Education, Science and Technology Transport Infrastructure and Nsanje World Inland Port

Development Climate Change, Natural resources and environment

management Integrated Rural Development

Rural Growth Centres development program Development of markets Rural livelihood support One Village One product Traditional Chiefs Administration Decentralisation

Public Health, Sanitation and HIV/AIDS management Youth Development and Empowerment Energy, Mining and Industrial development

LINKAGE WITH NATIONAL LINKAGE WITH NATIONAL BUDGETBUDGET

Government Chart of Accounts includes a segment for tracking Donor support in the Budget

All finances are categorized as government resources or donor support.

Within the donor support all donors supporting the budget have unique codes

MALAWI CHART OF MALAWI CHART OF ACCOUNTSACCOUNTS

Four segments Segment one: Administrative segment

› Vote : XXX› Budget type: X› Cost Centre: XXX› Division: XX› Donor: XX› Project: XXX

Segment two: Programme segment› Programme: XX› Sub programme: XX› Sub sub programme: X

Segment three: Output segment› MGDS Objective: XX› MGDS Output: XX› MGDS Activity: XX

Segment four: Economic classification› GFS Chapter: XX› GFS Sub chapter: XX› Item: XX› Sub item: XX

TRACKING DONOR TRACKING DONOR RESOURCES IN THE RESOURCES IN THE BUDGETBUDGET47010010001000-04021-010201-

4014109All expenditures incurred demand

the entire code be entered on the voucher making it easy to track as expenditures are incurred and on what purpose.

Can thus track donor support in the budget to specific projects and expenditure categories

SOME DONOR CODESSOME DONOR CODESCODE DONOR

01 Government of Malawi

02 International Fund of Agriculture Development

03 International Development Association

04 European Development Fund

05 African Development Fund

06 African Development Bank

07 United States Agency fo International Development

08 United Nations Industrial Development Organsition

09 United Nations Chidren's Education Fund

10 United Nations Fund for Population Agency

11 United Nations Development Programme

12 United Nations Capital Development Fund

CHALLENGESCHALLENGESA great deal of donor financed

projects are financed outside the government expenditure system

Difficult to tract progress as expenditures are incurred outside government IFMIS

Rely on the Debt and Aid Management Division on donor disbursement information to check progress

Time consuming as one is involved in matching of data from the AMP.

PROSPECTS FOR THE PROSPECTS FOR THE FUTUREFUTURE

COA demands a lot of detail that promotes transparency and accountability that is cause of concern to our cooperating partners

Encouraging all donors not using country expenditure systems as are assured of accountability

In the absence of the above, a mapping exercise is planned for all disbursements in AMP for budget expenditure tracking.

CONCLUSIONCONCLUSIONImperative that cooperating

partners not using country expenditure system be encouraged to do so as this reduces time required to produce expenditure reports

Its possible to track all donor financed projects in the budget and the corresponding expenditures.