Budget Execution
Introduction
Budget Execution Unit, like other units and sectors is one of the most important units of the budget department of the Ministry of Finance, both development and operation budget is executed through this unit after controlling and checking the documents for the requested amount from the line ministries, preparation of deferent reports like; report by fund, report by project, report by line ministries and budget execution rate report is one of the other important task of this department. The whole cycle budget approval and the system for processing the allotment is as follow:
Required Documents
The following document is required to be prepared by line ministries for requesting an allotment
- Official Cover Letter
- Budget Forms ( B27, B23, PCS)
- Comparative Result of Bidding
- Copy of the latest Contract
- Copy of the Contract Amendments
- Copy of the Project previous Allotments
- Procurement plan
- SoE (Statement of Expenditure)
- Donor No Objection
- MoF No Objection ( if it is from Govt discretionary fund
- B27 (Allotment request form) approved by authorized person
- PCS( Project Coding Sheet)
Rules and Regulations for requesting the allotment
Rules and Regulations (1)
After the approval of the budget by the National Assembly the budget should be considered final and all the budgetary units are obliged to adopt their plans with the final figures
All contracts, protocols, and procurements should be organized within the limits of the approved budget
Rules and Regulations (2)
No over expenditures of the budgetary units will be acceptable without written prior approval of the MoF/Donor
The new procurement law and procurement regulation should be strictly observed during the implementation of projects.
Participation of MOF is necessary in the procurements process.
Rules and Regulations (3)
No contractor has the right to directly contact the budget officers in MoF.
MoF make sure that its archive system not keeps any documents for more than one day.
MoF make sure to process/reply any received documents and letters within three working days.
All construction works to be implemented on the basis of the fixed prices of not works vs volume.
Rules and Regulations (4)
The tax should be included in all contracts.
Prior Written approval of the project's Donor/MoF, is necessary for any kind of additional work in project.
Challenges
Incomplete forms
- In correct coding (chart of account)
- Wrong name/number of the project
- Wrong economic codes
- Signed by unauthorized staff
- Un clarity of the currency
Incomplete set of documents
- Late response for the correction of the forms
- Late follow up of the process of documents
- Un clarity in the contracts
- Expired contracts
- Signing contracts by unauthorized staff
- Not considered the Tax in the contract
- Not obtaining the Donor agreement
- Not relevant staff (contractors)
Recommendations
- Consideration of PEFM Law, Regulation, Budget Guideline and circulars
- Procurement law,
- Donors' agreements
- Participation in all Introductory workshops
- Regular contact with your focal point in MOF