ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Wednesday, December 8, 2010

Technical Solutions and Standards to Bring Transparency to Donor Aid

Samuel Moon, Research Officer, Overseas Development Institute, moderated a panel discussion on aid transparency and the International Aid Transparency Initiative (IATI). Mr. Moon described the history of IATI since the Accra Agenda for Action.

The ODI studied whether budgetary classifications, in the Chart of Accounts, used in developing countries could be consistent with an aid standards. The study examined any common ground amoung budgetary classifications.

Mr. Moon pointed out that large amounts of aid can disrupt the accountability cycle in developing countries. ODI studied information at the donor and country level. 14 countries were selected. The study examined the OECD/DAC CRS and COFOG classifications.

The study focused on the organization and function codes for government charts of accounts. The study uncovered significant similarities among countries however there were limitations in the CRS and COFOG standards. Mr. Moon described some of the budget classification problems such as in the case of where police is found in the Chart of Accounts. He found that the classifications of health functions were inconsistent in the study.

Mr. Moon described the similarities found with the creation of a "spine" classification that could form the basis of a standard. He concluded that interfacing information on aid with budget systems will be country specific.

The paper is available at: http://www.odi.org.uk/resources/details.asp?id=4801&title=aid-effectiveness-agenda-recipient-countries-budget

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