REPUBLIC OF MOZAMBIQUE

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REPUBLIC OF MOZAMBIQUE
Mozambique
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Republic of Mozambique

• Population - 19 milion
• Civil Servants 160 Thousand
• Public Internal Auditors - 450

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• PUBLIC FINANCIAL MANAGEMENT SISTAFE
• LAW 9/2002 12 February
• Established 5 Public Financial Management
  Subsystems
• LAW 23/04 - 20 August
• Approved the Public Financial Management Rule
• UTRAFE Coordenator Institution of the PFM Reforms

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PUBLIC FINANCIAL MANAGEMENT SISTAFE
Public Accountability Subsystem
Budget Subsystem
Internal Audit Subsystem
State Patrimony Subsystem
Treasury Subsystem
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INTERNAL AUDIT
Domains

• Budgetary
• Economic
• Financial
• Patrimony

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Internal Audit Subsystem - Composition

• General Inspection of Finance and General
  Inspection of State Administration
• Sectorial General Inspections
• Central, Regional and Provincial Audit
  Institutions

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Acting

• Operational level
• Sectorial level
• Stratégic level

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Coordenation

• Coordenated Acting between institutions of
  control regard planning, realization and
  evaluation of the activities.
• Rational and coherent working
• Suficiency eliminate uncovered areas e resulted
  controls
• Complementarity respect the level and the
  atribuited area of each institution and
  accordance of borders, criteria and
  methodologies.
• Importance take in account risk evaluation and
  materiality of the situations.

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Frame
IAS
GOV. (MPF)
COORDENATOR COUNCIL
Strategic Level
IAE
IGF
Financial control of Public revenue and
expenses
Sectorial Level General Inspections of all
Ministries and Regional Inspections
Control the activities of the 1st level
institutions
Operational Level Internal Auditing Internal
Controls Procedures
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General Obligations

• The Institutions Shall
• Give all requested information to the Coordenator
  Council
• Respect the recomendations
• Support the Coordenator Council

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Special Obligations

• Strategic and sectorial controls shall
• Prepare activity plans and reports according to
  the CC recomendations
• Send to the C.C. Annual Activity Reports and plans

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Administrative Court

• Attend the CC sessions, preparation of the plan
  and annual reports as observer

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Achievements since the creation of the Subsystem

• Elaboration of the White Book for the
  IASubsystem (Diagnosis)
• Elaboration of IASs Strategic Plan for
  2005-2009
• CC bylaws

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Achievements since the creation of the Subsystem

• Perfomance Audit in Pharmaceutical Sector,
  Streets and Water- Justice Sector is ongoing
• Integrated Audit
• Conjoined Audits
• Procurement Process
• Financial and administrative evaluation of 39
  districts
• Auditing 50 of the districts (2008)
• Internal Auditors Training

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Constraints

• Lack of Public Auditor Bylaw
• Changes Resistance
• Insufficient quality and number of HRs
• Fragility of the Internal Audit Institutions,
  debilitate the principle of complementarity
• Insufficient financial Resources
• Technician Mobilility
• Incompatible wages
• Different development stages

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Challenges

• High Interaction with external audit
• Risk Management
• Increasing the covered budget
• Transversal Actions and their impact
• Quality training for internal auditors

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Initiatives

• Auditing Basic Manual
• To Facilitate Sharing of Knowledgement
• Partnership within other countries
• Annual Conference of Internal Audit
• Certification of Internal Audit profession

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Budget Subsystem

• Programmed and elaborated by the Module of
  Budgetary Programme

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Public Accountability Subsystem

• This System has been computerized and integrated
  with the other systems
• There is a Budgetary Execution Module in all
  Minitries, provinces and 38 of 146 districts of
  the country.
• The system gives
• Quaterly reports about the execution of the
  budget
• Government Financial Statements
• The 2007 Government Financial Statements has been
  elaborated based on the system information.

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Public Accountability Subsystem

• Unique account managed by the treasury
• Payments are directly, although some are still
  made by advanced funds.
• Law 54/2005 regulate the procurement process in
  the country was approved
• Acquisition unitiy management (UGEAs) were
  established under the law 54/2005.
• UGEAs members are ongoing training.

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• Thank you for you
• attention