Program Governance Structure

The PFM reform program has a two-tier governance and coordination structure – comprising a ‘Steering Committee (SC)’ and a ‘Program Execution and Coordination Team (PECT)’. Such Governance and coordination structure of PFM reform is providing a mutual learning and accountability platform among the relevant institutions for sustained use of improved PFM procedures and systems. In close coordination of PECT, 13 PITs (Program Implementation Teams) formed in different PFM institutions, that have the primary accountability of implementing the respective PFM Action Plan components, preparing implementation documentation such as work plan and budget allocation, providing financial oversight on program implementation, and achieving the performance targets. Besides, there are Implementation Supports Consultants and Word Bank MDTF (Multi-Donor Trust Fund) Team to support and coordinate each tier of the structure. There are 3-5 focal points nominated by the lead institutions from their counterpart institutions to ensure a smooth institutional collaboration for the implementation of PFM reform activities under each component. Institute of Public Finance (IPF) works to provide continuous support for PFM learning.

Formation and Functions of the Steering Committee:

The Steering Committee (SC) is headed by the Finance Secretary and comprised of senior representatives from major spending ministries, Cabinet Division, Comptroller and Auditor General, National Board of Revenue, Economic Relations Division, and Planning Commission. National Program Director of SPFMS Program is the Member Secretary of this committee.

SC oversees implementation progress and create the right enabling environment for change to happen. It also provides policy guidance and ensure an enabling environment for PFM reforms to succeed and be sustained.

Formation and Functions of the Program Execution and Coordination Team (PECT):

The PECT consists of 8 Program Executives under the National Program Director. These PECs lead 8 components among 14 mentioned in the PFM Action Plan (2018-23). These are as follows-

• Program Executive and Coordinator (PFM Reforms & Change Management)
• Program Executive and Coordinator (Macro Economics & Debt Management)
• Program Executive and Coordinator (Budget and Expenditure Management)
• Program Executive and Coordinator (iBAS++ & BACS)
• Program Executive and Coordinator (SOE Governance)
• Program Executive and Coordinator (Payments, Pensions & Financial Reporting)
• Program Executive and Coordinator (Revenue Mobilization, Planning & Procurement)
• Program Executive and Coordinator (Accountability & Parliamentary Oversight)

The overall functions of PECT are as follows:

• Coordinate all program preparation, implementation, and monitoring;
• Provide financial oversight on program implementation by sector ministries (education, health, justice, and agriculture);
• Convene Program Steering Committee meetings and issue Minutes of meetings;
• Coordination with the World Bank and other development partners (if involved);
• Prepare program documentation, plans and budget allocation (development and recurrent);
• Coordinate and submit the non-ADP Special Programs under SPFMS for the approval of the finance minister and ensure annual budget allocations for these non-ADP Special Programs;
• Conduct bi-monthly meeting of key stakeholders and issue minutes of meetings;
• Set up guidelines and regulations for program implementation;
• Prepare monthly and annual reports on implementation progress and plans;
• Conduct monthly coordination meeting of program stakeholders;
• Consolidate plans and budget estimates, implement and manage capacity building activities, and prepare relevant reports.

Formation and Functions of the Program Implementation Teams (PITs):

There are 13 teams for each component except component 14, accountable for implementation of the respective reform interventions and achieve the performance targets. The functions of PITs are as follows:

• Coordinate with PECT for the program implementation and monitoring;
• Participate in Program Steering Committee meetings;
• Coordinate with the World Bank and other development partners (if involved);
• Prepare program documentation, plans and budget allocation (development and recurrent);
• Provide progress reports for activities managed under the program;
• Ensure that accounts are kept and reports on financial progress are prepared in timely manner;
• Facilitate the audit process for the program expenditures and improvement of internal controls over the life of the program;
• Oversee/execute contracts for goods, works and services;
• Plan and carry out procurement activities;
• Provide financial oversight on program implementation;
• Develop monitoring and evaluation plans for the program;
• Coordinate with various key stakeholders involved in the monitoring process;
• Ensure quality and consistency of data collected;
• Conduct special ad hoc studies to assess specific issues under the program as needed;
• Feed data/information into annual monitoring and progress report.