Republic of Honduras : Country Financial Accountability Assessment
This Country Financial Accountability Assessment (CFAA) aims to assist the Government implement effective measures to strengthen public financial management, which would result in more effective economic development, and poverty reduction programs....
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| Format: | Country Financial Accountability Assessment |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/01/4958187/honduras-country-financial-accountability-assessment http://hdl.handle.net/10986/14580 |
| Summary: | This Country Financial Accountability
Assessment (CFAA) aims to assist the Government implement
effective measures to strengthen public financial
management, which would result in more effective economic
development, and poverty reduction programs. While the
implementation of the integrated financial management system
has improved the Government's ability to control, and
manage expenditure, weak internal controls, and internal
audit capacity in spending agencies hinder the assurance of
efficiency and certification of expenditures. The report
finds fiscal responsibilities are not managed by the
Treasury, but rather by the Office of Public Credit, and the
Central Bank, a dispersion of responsibility for the
management of public funds which results in functional gaps,
directly affecting the security, and control of Government
funds. And, while tax administration is improving, the
procedures governing tax collections are still weak,
consequently, with no proper reconciliation between the
funds paid by the taxpayers, to that of the funds declared
by banks as collected, and, there is no reconciliation
between the funds received by the banks, and those
transferred to the treasury accounts. Furthermore, the
external audit function is still evolving, following the
creation of the new Audit Court, for which the Government
has been supporting a capacity-building program. However,
the lack of external audits of the Government's
financial statements represents a weakness in the
transparency of public finances. The CFAA suggests as the
most urgent need, to upgrade the quality of human resources
in the public sector. In particular, efforts need to focus
on strengthening of the legal, and accountability framework
for public financial management, upgrading and modernizing
Government financial management, and administration systems,
streamlining processes and procedures, and, rationalizing
and strengthening institutions responsible for ensuring accountability. |
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