ebook img

Local Public Financial Management - World Bank eLibrary PDF

290 Pages·2007·1.3 MB·English
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview Local Public Financial Management - World Bank eLibrary

PUBLIC SECTOR GOVERNANCE AND ACCOUNTABILITY SERIES LOCAL PUBLIC FINANCIAL MANAGEMENT Edited by ANWAR SHAH LOCAL PUBLIC FINANCIAL MANAGEMENT Introduction to the Public Sector Governance and Accountability Series Anwar Shah,Series Editor A well-functioning public sector that delivers quality public services consistent with citizen pref- erences and that fosters private market-led growth while managing fiscal resources prudently is considered critical to the World Bank’s mission ofpoverty alleviation and the achievement of the Millennium Development Goals.This important new series aims to advance those objec- tives by disseminating conceptual guidance and lessons from practices and by facilitating learning from one another’s experiences on ideas and practices that promote responsive(by matching public services with citizens’preferences),responsible(through efficiency and equity in service provision without undue fiscal and social risk),and accountable(to citizens for all actions) public governance in developing countries. This series represents a response to several independent evaluations in recent years that have argued that development practitioners and policy makers dealing with public sector reforms in developing countries and,indeed,anyone with a concern for effective public gov- ernance could benefit from a synthesis ofnewer perspectives on public sector reforms.This series distills current wisdom and presents tools of analysis for improving the efficiency, equity,and efficacy ofthe public sector.Leading public policy experts and practitioners have contributed to this series. The first 14 volumes in this series, listed below, are concerned with public sector accountability for prudent fiscal management;efficiency,equity,and integrity in public service provision; safeguards for the protection of the poor, women, minorities, and other dis- advantaged groups;ways ofstrengthening institutional arrangements for voice,choice,and exit;means ofensuring public financial accountability for integrity and results;methods of evaluating public sector programs,fiscal federalism,and local finances;international practices in local governance;and a framework for responsive and accountable governance. Fiscal Management Budgeting and Budgetary Institutions Public Services Delivery Local Budgeting Public Expenditure Analysis Local Public Financial Management Local Governance in Industrial Countries Performance Accountability and Combating Corruption Local Governance in Developing Countries Tools for Public Sector Evaluations Intergovernmental Fiscal Transfers: Macrofederalism and Local Finances Principles and Practice Citizen-Centered Governance Participatory Budgeting PUBLIC SECTOR GOVERNANCE AND ACCOUNTABILITY SERIES LOCAL PUBLIC FINANCIAL MANAGEMENT Edited by ANWAR SHAH THE WORLD BANK Washington,D.C. ©2007 The International Bank for Reconstruction and Development / The World Bank 1818 H Street,NW Washington,DC 20433 Telephone:202-473-1000 Internet:www.worldbank.org E-mail:[email protected] All rights reserved 1 2 3 4 10 09 08 07 This volume is a product ofthe staffofthe International Bank for Reconstruction and Development / The World Bank.The findings,interpretations,and conclusions expressed in this volume do not necessarily reflect the views ofthe Executive Directors ofThe World Bank or the governments they represent. The World Bank does not guarantee the accuracy ofthe data included in this work. The boundaries,colors,denominations,and other information shown on any map in this work do not imply any judgement on the part ofThe World Bank concerning the legal status ofany territory or the endorsement or acceptance ofsuch boundaries. Rights and Permissions The material in this publication is copyrighted.Copying and/or transmitting portions or all ofthis work without permission may be a violation ofapplicable law.The International Bank for Reconstruction and Development / The World Bank encourages dissemination ofits work and will normally grant permission to reproduce portions ofthe work promptly. For permission to photocopy or reprint any part ofthis work,please send a request with complete information to the Copyright Clearance Center Inc.,222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office ofthe Publisher,The World Bank,1818 H Street,NW,Washington, DC 20433,USA;fax:202-522-2422;e-mail:[email protected]. ISBN-10:0-8213-6937-7 ISBN-13:978-0-8213-6937-1 eISBN-10:0-8213-6938-5 eISBN-13:978-0-8213-6938-8 DOI:10.1596/978-0-8213-6937-1 Library ofCongress Cataloging-in-Publication Data Local public financial management / edited by Anwar Shah. p.cm. Includes bibliographical references and index. ISBN-13:978-0-8213-6937-1 ISBN-10:0-8213-6937-7 ISBN-10:0-8213-6938-5 (electronic) 1.Local finance.2.Finance,Public.I.Shah,Anwar. HJ9105.L616 2007 355.4’215—dc22 2006101269 Contents Foreword xi Preface xiii Acknowledgments xv Contributors xvii Abbreviations and Acronyms xxi Overview 1 Anwar Shah CHAPTER 1 Financial Accounting and Reporting 7 Rowan Jones Traditional Functions ofFinancial Accounting and Reporting 9 Accounting Bases 13 Expanding Traditional Functions 19 Financial Reporting Standards 29 Summary 30 Notes 31 References and Other Resources 32 v vi Contents 2 Local Government Cash Management 33 M.Corinne Larson Collections 34 Funds Concentration 41 Disbursements 45 Banking Relationships 48 Cash Flow Forecasting 50 Investing 55 Conclusion 65 Notes 68 References and Other Resources 68 3 Local Government Procurement and Safeguards against Corruption 69 Clifford P.McCue and Eric W.Prier Overview ofPublic Procurement 70 Government Systems and the Potential for Corruption at the Local Level 76 The Procurement Process as a Safeguard against Corruption 79 Ethics and Professionalism 97 Conclusion 101 Notes 103 References and Other Resources 103 4 Local Debt Management 109 Gerald J.Miller and W.Bartley Hildreth How Do Local Governments Use Debt? 112 When Do Local Governments Use Debt? 116 How Do Local Governments Assess Debt Affordability? 121 What Forms ofDebt Do Local Governments Use? 137 How Do Local Governments Issue Debt? 143 How Do Local Governments Manage Existing Debt? 149 Conclusion 151 References and Other Resources 152 Contents vii 5 Local Government Internal Controls to Ensure Efficiency and Integrity 157 Jesse Hughes Corruption and Money Laundering 157 Objectives and Scope ofInternal Controls 159 COSO Framework on Risk Management 165 International Federation ofAccountants Standards Applicable to the Private and Public Sectors 171 Institute ofInternal Auditors Standards Applicable to the Private and Public Sectors 173 International Organization ofSupreme Audit Institutions Identification ofOrganization Need for Internal Controls in the Public Sector 175 INTOSAI Framework 178 Public Internal Financial Control 180 Best Practices in Control and Management Systems for European Union Membership (SIGMA Baselines) 181 Relevance and Feasibility ofInternal Controls for Local Governments in Developing Countries 181 Organizing to Implement Internal Controls 187 Notes 190 References and Other Resources 190 6 Internal Control and Audit at Local Levels 193 Mustafa Baltaci and Serdar Yilmaz The Need for Improving Accountability in Decentralization 195 Contemporary Internal Controls 198 Internal Audit:A Key Module in Control Systems 204 Conclusion 208 Annex 6A.1:Internal Control and Audit in Local Governments across the World 209 Annex 6A.2:Establishing Effective Internal Control in Local Governments 212 Annex 6A.3:Starting from Scratch:Building an Audit Unit in Local Government 216 Annex 6A.4:Basic Elements ofInternal Audit 218 viii Contents Annex 6A.5:Importance ofRisk Management 221 Notes 222 References and Other Resources 223 7 External Auditing and Performance Evaluation, with Special Emphasis on Detecting Corruption 227 Aad Bac What Makes Auditing in the Government Area Special? 228 The Object ofAudit 231 The Scope ofthe Audit 232 The Users ofAudits 247 The Auditor 247 The Auditee 249 The Audit 250 The Auditor’s Reporting 253 References and Other Resources 254 Index 255 BOX 6.1 Three Types ofAudit 206 FIGURES 1.1 Year-End Budget Report 12 1.2 Operating Statement under Cash Accounting Based on Line Items 14 1.3 Statement ofPayments under Cash Accounting Detailing Operating and Capital Payments 15 1.4 Accrual-Based Statement ofFinancial Position 22 1.5 Accrual-Based Operating Statement 23 1.6 Accrual-Based Statement ofChanges in Net Assets 24 1.7 Cash Flow Statement under the Direct Method 25 2.1 Cash Management Cycle 35 2.2 Account Structure and Flow ofFunds 43 4.1 Matrix ofSources ofSubnational Government Capital Investment Financing 119

Description:
A well-functioning public sector that delivers quality public services consistent with citizen pref- erences Local public financial management / edited by Anwar Shah. p. cm. recognized as an important part of accounting theory and practice.
See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.