Peru : Country Financial Accountability Assessment
This Country Financial Accountability Assessment (CFAA) report, looks exclusively at Peru's public sector financial accountability arrangements, and, its primary aim is to assess strengths, and weaknesses, as they relate to the use of Bank fun...
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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/2001/02/2454424/peru-country-financial-accountability-assessment http://hdl.handle.net/10986/15284 |
| Summary: | This Country Financial Accountability
Assessment (CFAA) report, looks exclusively at Peru's
public sector financial accountability arrangements, and,
its primary aim is to assess strengths, and weaknesses, as
they relate to the use of Bank funds, particularly under
non-investment lending operations. It reviews the
legislative framework, relevant to the current reporting
environment; the application of appropriate accounting
standards, and reporting format, competency of financial
staff, and independent review of financial operations and
reports, and, the adequacy of financial management, as
implied in financial accountability, comprising cash
management, planning, control, and supervision of financial
operations. Findings and conclusions on the fiduciary
framework shows that, as shown by the independent
verification of the integrity function assigned under the
law to the Supreme Audit Institution (Contraloria General de
la Republica - CGR), is undermined by the Executive, through
limited funding of its program, while the history of reviews
by the CGR indicates a failure to effect, or supervise the
external control function in the Ministry of Defense.
Furthermore, audit findings reveal that neither the
Congress, nor the public is adequately informed on the state
of control in the executive branch, suggesting performance
auditing should be subject to a cost/benefit analysis, and
discussed openly with Congress. Although Peru is considered
exemplary in the application of public sector financial
management components, its fiduciary framework to support
non-investment lending should, however, comprise, in
addition to the existing controls, a plan to achieve a
strong supreme audit institution to support the extension of
the integrated financial management system to the ministries
of Defense and the Interior, to ultimately support the uses
of funds advanced, and, the external reporting on budget
execution should be made at the program level, in addition
to restoring the control over Budget to the Congress,
limiting the use of Emergency Decrees, and applying
transparent guidelines for approved budget funding. |
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