PFM Transversal Risk Report
AFROSAI-E has just published its first Public Financial Management (PFM) Transversal Risk Report for the region. The PFM Reporting Framework Tool allows SAIs to report holistically on PFM risks. The framework focuses on the overall functioning of the system and the related synergies. In this PFM Transversal Risk Report, we have taken the reporting framework further by consolidating nine countries’ perspectives on PFM into a holistic regional view. This report also highlights the pivotal role that PFM processes play in attaining the Sustainable Development Goals (SDGs).
We recognise that effective PFM systems can have widespread effects on the reach, quality and effectiveness of essential public services. We, therefore, trust that this report will be a valuable resource for various stakeholders, including practitioners and policymakers.
Key observations in this report include:
- Governments are doing a lot to improve PFM systems. However, there is significant scope for them to do more as there are severe deficiencies in the region’s PFM systems. It is in the interests of the SAIs to use the PFM tool to complement the traditional audit approach.
- The level of adherence to the PFM processes is consistent with the level of skills across the PFM institutions. There is also a noticeable decrease from the core PFM institutions to the Ministries, Departments and Agencies (MDAs). This suggests an urgent need for capacity building at parliament and MDA levels.
- There is a need for caution regarding the region’s ability to meet the SDGs and 2030 targets. The intent to monitor and measure SDG targets at the national government level does not always cascade to the MDAs. We see this in the lack of transparency in reporting on SDGs at the MDA level. Unless urgently addressed, this will result in the region missing the SDG targets.