Public Financial Management Reform in Afghanistan
2006-2012 || World Bank
Through this project, Deloitte advisors provided technical assistance to Afghanistan to install and develop the first automated financial management information system and to develop processes and procedures to help the Treasury meet its fiduciary responsibilities and reporting obligations to both the newly-created government and external donors. Deloitte supported the Treasury in its efforts at achieving self-sustaining operational capability by consolidating the rollout expansion and developing further capacity to accelerate the transfer of Afghanistan Financial Management System (AFMIS) operational responsibility to the Treasury civil service staff.
A good public financial management system is essential to implement policies and achieve developmental objectives by supporting fiscal discipline, strategic allocation of resources and efficient service delivery. The Treasury function is fundamental to sound public financial management because it works diligently towards the provision and operation of accounting systems in government, produces financial policies and procedures, and issues financial reports and statements. In Afghanistan, the AFMIS General Ledger system records many transactions. However, internal control systems should be strengthened, particularly in terms of streamlining, fully documenting and implementing processes. The Treasury department also suffers a similar challenge faced across government, namely the attraction and retention of suitably skilled and qualified staff to perform key financial management tasks.
Beyond the development and continued maintenance support to AFMIS, Deloitte pursued complementary goals to increase the government’s capability in public financial management, thus creating a self-sustaining environment for the organizations, processes, and enabling technology. We focused on:
Major achievements included:
The result has been that Afghanistan is one of the first in the region for implementation of modern public financial management practices, which can help to boost confidence of both donors and citizens that funds are spent in accordance with the critical development objectives of the country.