Marshall Islands : Public Financial Management Project

Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises

More effective governance achieved

Public financial management improved

The MOF's institutional capacity to implement the PFM Reform Roadmap strengthened

MOF's institutional capacity to implement SOE reforms strengthened

Currently, there are 3 staff.

Ongoing work with 3 targeted SOEs to assess legitimacy of CSOs through June 2021 SOE business plans (draft) submitted (10 of 11 SOEs) as per SOEMU deadlines. Although no formal outcomes can be reported in relation to CSOs, at this time, some progress has been made in relation to MAWC, who are now likely to be the first to achieve a formalized CSO Agreement. Tax reform analyses and reports completed as of 31 January 2021. The Team Leader continues to work as part of a working group (ADB, PFTAC, World Bank, MOF) to discuss and continue to develop a roadmap for implementing part of the tax reform recommendations that have been made under this project. In March 2023, the RCU closely coordinated with a World Bank in-country mission on the status of ongoing PFM and SOE reforms for potential further collaboration toward supporting reform implementation.

Ongoing. 8 Female: Bachelors Degree; 14 Female: AA Degree; 4 Male: Bachelors Degree; 26 Male: AA Degree.

Ongoing. MOF overall estimates are: Female 35, Male 65

Fiscal Responsibility and Debt Management Act and related regulations was enacted effective 8 June 2021. Ongoing, reform initiatives undertaken contributed to the Introduction of a Performance Based Management Framework. a. PFM-RCU edited/reviewed the Financial Management Act (Amended) drafted by the World Bank-PFM advisors, which was recently approved by the Nitijela; PFM-RCU edited/reviewed the revised Procurement Regulations PUBLIC PROCUREMENT CODE (Act) 2022 (World Bank), awaiting submission to Cabinet for review; Participated in all budget consultations with line ministries and agencies in relation to the FY2023 Appropriation.

b. Completed initial draft of RMI Financial Sector Development Plan in coordination with the RMI Banking Commission; Facilitated and implemented costing of National Strategic Plan in coordination with UNICEF and Chief Secretarys office; Drafted and finalized National Investment Policy Statement (NIPS) 2022 Review Draft, consultations scheduled October/November with target of Cabinet Approval in December; Updated the Economic Policy Statement (EPS) for inclusion with the FY2023 Budget Submission.

c.Continued work with line Ministries and EPPSO to revise format for Ministry Strategic Plans linking annual budgets to NPS/FMIS and SDGs, several currently being drafted with others in various stages of review for approval.

d.Improved cash management, simplified cash monitoring template for Treasury and Accounting.

e.Strengthened procurement management, close coordination with World Bank project in designing an FMIS (Completed)

f.Participated in the rigorous As-Is To-Be Validation Workshops conducted by the team of consultants from Bisan, the new FMIS of the government. The objective of the workshops was to validate Bisan's conceptual understanding of the GRMI's current business process streams for expenditure and revenue management, and any peculiarities. The workshops presented prototypes of how GRMI's business process workflows and controls can be configured in the Bisan System. The Bisan system went live on 3 October 2022.

g.Strengthened asset management development of Fixed Asset Management Manual; draft Asset Management manual for SOEs has been prepared and is subject to review prior to implementation with SOEs during 2022.

h.Introduction of a performance-based management framework initial performance agreements signed with critical agencies.

i.Improved management of imprest accounts of all RMI embassies. Procedures Manual finalized.

j.PFM-RCU prepared/drafted management responses and corrective action plan for GRMI's audit findings and questioned costs from the FY2020 Single Audit. Coordinated with relevant ministries, agencies and SOEs in addressing the issues bringing down eleven initial findings to seven; PFM-RCU prepared/Drafted the Managements Discussion & Analysis of the GRMI's Single Audit for FY2020; PFM-RCU prepared/assisted the Accounting Department in the preparation of various schedules for the general ledger accounts of the national government in relation to the FY2021 Single Audit by Deloitte & Touche; PFM-RCU prepared/Assisted the Accounting Department in the reconciliation of various general ledger accounts of the national government for FY2022.

k.Trained the new Accounting Compact Officer and new Compact Fiscal Officer on grants management from April to May 2022.

l.PFM reform communications and training various publications, awareness-raising activities, training sessions.

m.Improved debt management. Debt Management training ongoing for MOF Management Team (ADB) with the goal of establishing a debt management unit under Improved Debt Management component.

Ongoing :Conducted an internal procurement training on 14 June 2022 involving key officers of the MOF. Conducted an MOF-wide preliminary procurement training on 2 August 2022 in preparation for the GRMI-wide procurement training.

The ultimate beneficiaries are the people of the RMI. The project objectives are aligned with the NSP, which was consulted within the RMI.

The project has mobilized the following consultants: an international Advisor to the Ministry of Finance; three financial management specialists; and two senior national consultants.

For state-owned enterprise reforms, the project an international State-Owned Enterprise and Community Service Obligations Expert.