PEMPAL TCOP Plenary Meeting Measuring and Monitoring Treasury

PEMPAL TCOP Plenary Meeting Measuring and Monitoring Treasury Performance Group 3 – Armenia, Kyrgyzstan, Moldova, Russia, Uzbekistan Tirana (Albania), May 22, 2018 1

Overview of Country Practices 2

• • Existing approaches to monitoring treasury performance (participants, processes, tools, etc. ) Carrying out automated employee assessment (establishing a database - Armenia) Incorporating into the budget program framework (Moldova) Lack of assessment system – budget program reporting forms are being developed (Kyrgyzstan) Assessment is not supported by regulations (Uzbekistan) 3

Challenges in measuring and monitoring treasury performance • Lack of common approaches – lack of common methodology, methodology is hard to develop • Lack of automation system • Assessment administration is labor-intensive (especially self-assessment) • Must be part of decision making or incentive system • Interest of the management 4

PEFA Indicators as Treasury KPIs (example of PI-22 Expenditure Arrears) 5

Are we using the same language when speaking of “expenditure arrears”? (examples of definitions used) • Based on the contractual deadline, otherwise – 30 days (Armenia, Moldova, Kyrgyzstan); • Mandatory contractual condition (Russia) • Arrears are formed when a budget user does not pay within the reporting period (quarter). A clearing center has been established within the public procurement operator (Uzbekistan) 6

Challenges in using PI-22 for measuring treasury performance • Impossible to assess using a single indicator (arrears), a unified treasury performance assessment system should be developed • PEFA framework differs from legally adopted approaches in each of the countries 7

PI-22 Expenditure Arrears – Self-Assessment 22. 1. Stock of Expenditure Arrears 22. 2. Expenditure Arrears Monitoring Armenia А В Kyrgyzstan Moldova В А С (В) А Russia Uzbekistan А+++ А А D (A) 8

THANK YOU! 9