The substantive focus of activities to be carried out under this thematic area will include:

[a] budget preparation

The budget has to cover all public funds, fitting within a mid-term expenditure framework setting spending priorities across several years. It should include a presentation of the macroeconomic framework, fiscal policy objectives, and main risks. Its formation needs punctual regulation of several aspects, such as calendar, instructions to users, analysis of requests, negotiation and arbitration mechanisms, and parliamentary approval. Performance-based budgeting requires the development of results frameworks with targets and indicators, consistent with national policy frameworks.

[b] budget execution

Proper budget execution needs accurate monitoring of cash flow forecasts, the operation of expenditure ceilings, control over budget reallocations and sound debt control. A single treasury account system is likely to be adopted for carrying out payments, supported by an electronic information system. Consolidated financial statement prepared for each year, in line with international accounting standards.

[c] internal control and audit

Effective internal controls usually require regulation, paired with the establishment of an internal audit function to provide the management with reassurance on the functioning of internal control systems. Internal auditors need functional independence within their institutions, and should apply internationally recognized internal audit standards. A central unit monitoring and advising their work might be established.

[d] public procurement

Public procurement is usually regulated following international standards such as UNCITRAL model law, EU directives. A central unit is in charge of setting public procurement policy and standards, and procurement officers undergo specific training and/or certification. Special arrangements are needed to ensure the review of tender awards or other aspects of the procedure upon complaint.

[e] external audit

A Supreme Audit Institution should be in charge of auditing the accounts and financial management systems of all budget users, covering all public resources. The SAI should be in a position of independence, i.e. access to sufficient resources, setting its work plan, publishing work results and apply international audit standards (INTOSAI). SAI findings should be reported to parliament, and considered by legislators.