Taining On Budgeting & GIFMIS - CSTC

TRAINING ON
PUBLIC SECTOR BUDGETING & THE GIFMIS

FOR AD1 CLASS AND ANALOGUS GRADES
Facilitator: Mac-Effort K. Adadey

(FCCA, ICAG, IIA, COIS, PMP, CICP, CIFP, MBA, MSc)
PUBLIC SECTOR
BY Mac-Effort K. Adadey 2
Outline
1. The meaning of public sector
2. Why public sector organisations exist
3. Meaning of a Budget
4. Functions of a Budget
5. Multi-Annual Considerations of Budget
6. Budgeting Concept in Ghana
7. Legal framework of budgeting in Ghana
8. Budget classifications
9. Budget reports
What is Public Sector?
Public Sector refers to:

•Government-owned organizations,
and
•Government-provided services.
WHY PUBLIC SECTOR ORGANISATIONS EXIST?
To provide basic or essential services to all citizens regardless of ability to

pay
To provide services that are beyond the private needs of those using the
services
To aid control and economic regulations of certain key areas, eg. Defense,
Energy, Health, Water, Law & Order, Economic Affairs, etc.
To correct perceived inequalities in the standard of leaving (minimum wage,
standard of education, health, road, etc)
To fulfil legal requirements for their establishment

PFM CYCLE
❑PFM encompasses a broad set of functions commonly conceived as a cycle of

six phases
6. Review and
1. Planning
Audit
5. Accounting 2. Budget
and Reporting formulation
4.Budget 3. Budget
Execution Approval
WHAT IS A BUDGET?
Budgeting is a universal and essential activity of governments and it is
defined in several terms by many scholars:
1. According to Sullivan and Steven (2003):“Budget is a financial plan and a
list of all planned expenses and revenues. It is a plan for saving, borrowing
and spending.”
2. Beardon and Yawson (2000):“Budget is the outcome of systems and
relationship through which the varying needs and desires of a nation are
heard, prioritized, and funded”.
3. Wildavsky, A. (1978): “Budget is a document, containing figures that
propose expenditure for certain items and purposes. A budget is also a
statement about the future, and it attempts to link proposed expenditures
with desirable future events.
STAGES OF BUDGET PREPARTION IN GHANA
1.Budget Circular
2. Draft Estimates
3. Budget Hearing
4. Consolidation
5. Cabinet Approval
6. Presentation to Parliament
7. Parliamentary Approval
8. Publication in the
Gazette
FUNCTIONS OF A BUDGET
1. Policy Statement- that declares the goals and specific objectives an
authority wishes to achieve by means of the expenditure concerned.
2. Redistribution of wealth- to bridge the gap in standard of living
disparity
3. Administrative authority- the budget is a work program on which
each institution can base its own operational work program.
4. A coordinating instrument- containing all the information on the
policies, objectives and activities by which government activities can be
integrated
5. A control instrument- to be used by the legislative authority over the
executive authority and by the executive authority over the
administrative authority and even for internal control within a single
component of the administrative authority
MULTI-ANNUAL CONSIDERATIONS OF BUDGET
Annual budget must reflect three paramount multi-annual considerations:
a) The future recurrent costs of capital expenditures
b) The funding needs of entitlement programs (for example debt service

and transfer payments) where expenditure levels may change, even
though basic policy remains the same
c) Contingencies that may result in future spending requirements (for

example government loan guarantees)
BUDGETING CONCEPTS
There are different budgeting concepts that an entity or a country can

adopt in the public sector, including the five listed below:
1. Zero Base Budgeting (ZBB)
2. Incremental Budgeting (IB)
3. Activity Bases Budgeting (ABB)
4. Rolling Budget
5. Programme/Performance Based Budgeting (PBB)
ZERO-BASED BUDGETING (ZBB)
❑ZBB starts from the basis that no budget lines should be carried forward from
one period to the next simply because they occurred previously. Instead,
everything that is included in the budget must be considered and justified.
❑ZBB in its purest form “involves the preparation of operating budgets on the
assumption that the organisation is starting out afresh in the new planning
period.
❑It requires the organisation’s objectives to be clearly stated and assessing the
different ways of delivering those objectives before the budget is allocated.
❑ZBB is less of ‘how should we deliver this service with the money available’ and
more of ‘here’s what we have to achieve, different options for achieving it and the
budget required for each of those options’.
INCREMENTAL BUDGETING (IB)
❑The previous year’s budget is carried forward for the next
annual budget.
❑The budget is adjusted for known factors such as new
legislative requirements, additional resources, service
developments, anticipated price and wage inflation and so
on.
❑A key characteristic of IB is that budget preparation is a
process of negotiation and compromise.
ACTIVITY BASED BUDGETING (ABB)
❑ABB is an approach developed from activity-based
costing.
❑Rather than assuming that overheads/ costs are related to

volumes of production or service, the ABB technique
attempts to identify what activities drive cost by linking cost
to those activities.
❑This provides more robust information for budget

preparation as planned changes in production or service
activities can be connected to changes in costs.
ROLLING BUDGET (RB)
❑RB is suitable under uncertain conditions
❑A rolling budget can be defined as “a budget constantly updated
by adding a further period, e.g. a month or quarter or a year and
removing the earliest period.”
❑A medium term (say 4 years) rolling process would mean that a
budget would be prepared every year, and each time rolling
forward for one year.
❑The first year would be planned in detail and remaining years less
so, reflecting the uncertainty about the long-term of the organisation.
❑Ghana is currently running a four-year (MTEF) budget regime
PROGRAMME-BASED BUDGETING (PBB)
❑The main aim of PBB is to connect performance information with the allocation and
management of resources.
❑It seeks to link planned expenditure to a defined level of performance
❑PBB approach requires that you define
❑The policy objectives
❑Target outputs and outcomes to be achieve within the budget period
❑Responsibility for each target output
❑Performance measurement criteria to track achievement of targets and objectives
❑The performance objectives are integrated with the budget preparation to allow for the
alignment of spending plans with performance reporting at the time the budget process
is initiated.
❑ At the end of each budget period, performance-based audits are conducted to
measure the results of programmes using the same performance measures produced in
the budgeting process.
❑Ghana started PBB in 2014
Some Issues with PBB
Public entities need to be clear about what they are trying to achieve, hence
the need for a clear strategic direction for public entities (which may not
always be the case)
Translating strategic goals and objectives into performance measures can be

very difficult. In many public services, outcomes are difficult to measure and
there is a tendency to fall back upon less appropriate output and input
measures
Management may not accept a performance budgeting process. There are
often problems in defining who is accountable for performance and managers
may fear that they will be reprimanded for failure to achieve published
performance targets, and thus may try to avoid being accountable
Issues with PBB..
Systems for collecting cost and performance information may need to be well
developed. Costing out services can be difficult and decisions on how to deal
with overheads are problematic
Information may need to be presented in appropriate formats to a variety of

users. Public Entities continue to publish budget and performance information in
separate documents
A lack of political acceptance of reform may prevail. Performance information

represents a threat to the ‘political’ aspect of budgetary decision making since its
explicit measurements tend to limit the discretion politicians can exercise.
LEGAL FRAMEWORK
FOR PUBLIC SECTOR
BUDGETING IN
GHANA
Annual Budget Guidelines
PFM Act 2016
❑Section (20) - The Minister, subject to Cabinet approval, shall issue guidelines for the
preparation of the budget for each financial year to be circulated to all covered
entities not later than the 30th June of every year.
❑The guideline shall include:
1. the economic outlook for the country;
2. revenue forecasts;
3. the multiple year ceilings for each covered entity in line with the Fiscal Strategy Document;
4. the ceilings on the required number of staff for each covered entity
5. the selection criteria for investment projects
6. the ceilings for the preparation of the budget estimates of local government authorities;
7. details of expenditure under statutory funds
8. any other information required from a covered entity to enable the Minister prepare the
annual budget in accordance with the requirements of section the law
Timelines for Annual Budget
Section (21)
❑Issue Budget guideline not later than 30th June of each financial year
❑Draft or proposed annual budget not later than 1st October
❑Submit the proposed annual budget to Cabinet for approval not later than
15th October.
❑Cabinet shall, not later than the 30th October communicate to the Minister, the
decision of Cabinet on the proposed annual budget.
❑The Minister shall, on behalf of the President, lay before Parliament not later
than 15th November the annual budget for the ensuing financial year.
❑Parliament shall approve the budget by 31st December
❑The Minister shall, publish in the Gazette, the Appropriation Act on or before
the 31st of December of each financial year.
Budget Commitment
Section (25)
❑After approval of the annual budget by Parliament, the Minister shall, within
ten days of the ensuing month, issue quarterly expenditure ceilings in respect
of approved annual budget.
❑The Controller and Accountant-General shall, based on the quarterly
expenditure ceilings release funds (Warrant) to the Principal Spending
Officers of covered entities.
❑A Principal Spending Officer shall commit the budget of a covered entity
based on the quarterly warrants issued
Budget Commitment..
❑A Principal Spending Officer or any other public officer shall not commit
Government to a financial liability, including contingent liability, unless
that Principal Spending Officer is specifically authorised to do so under
this Act, the Regulations or directives issued pursuant to this Act.
❑A Principal Spending Officer who contravenes this is liable to an
administrative penalty of two thousand penalty units.
❑A commitment in respect of staff recruitment shall, subject to financial
clearance by the Minister, be within the limits set by Parliament
❑ Subject to Parliamentary approval granted under section 21, the
Minister shall grant clearance before a covered entity signs a multi-year
contract
Virement
Section (32)
❑The Minister may, on the request of a Principal Spending Officer, execute a
virement in respect of an amount of money allocated to the covered entity of
that Principal Spending Officer, subject to the following conditions:
1. a virement of funds allocated for wages and salaries in an expenditure vote shall
not be made unless the virement is in respect of wages and salaries within that
expenditure vote;
2. a virement that involves a change in the spending plans approved by the Minister
for the current financial year shall require the prior written approval from the
Minister;
3. a virement may be made from a recurrent expenditure to capital expenditure as
well as from one capital expenditure to another capital expenditure but shall not
be made from a capital expenditure to a recurrent expenditure; and
4. a virement shall not be made in respect of appropriated amounts between covered
entities without the approval of Parliament in a supplementary estimate.
BUDGET CLASSIFICATIONS
Public Funds of Ghana
❑Article 175 of the 1992 Constitution states, ”The Public Funds of Ghana shall
be the Consolidated Fund, the Contingency Fund and such other public funds
as may be established by or under the authority of an Act of Parliament”
❑Public funds of Ghana are therefore categorised as follows:

1. The Consolidated Fund
2. Internally Generated Fund
3. Statutory Funds
4. Donor Fund
5. Any other funds as may be established by an Act of Parliament
Types/ Sources of Government Revenue
Domestic
1. Tax
Revenue Customs duties
Fees, fines and licenses by public entities

2. Non-Tax
Revenue Royalties for mineral resources
Returns on Public Investments (Interests, Dividends, etc.)

Etc.
4. Grants
Below The Line
Borrowings
Budget Classification on the GoG Chart of
Accounts
The Natural Account segment of the CoA is made up of:
1. Revenue
2. Expenditure
3. Assets (formerly investments)
4. Liabilities
Budget Classification on the CoA..
1. Revenue
1.1 Taxes (Direct & Indirect)
1.2 Donor Grants & Reliefs
1.3 Non-Tax
1.3.1 Interest
1.3.2 Lands and Royalties
1.3.3 Rents of Land, Buildings and Houses
1.3.4 Licenses
1.3.5 Fees
1.3.6 Fines, penalties, and forfeits
1.3.7 Miscellaneous and unidentified revenue
Budget Classification on the GoG Chart of
Accounts
2. Expenditure
2.1 Compensation of Employees (formerly Personnel Emoluments)
2.2 Goods and Services (combination of the former Admin. & Service Exp.)
2.3 Consumption of Fixed Assets (Depreciation)
2.4 Interests
2.5 Subsidies and
2.6 Grants
2.7 Social Benefits
3. Assets (formerly investments)

3.1 Financial assets (eg. Bonds, equity, etc.)
3.2 Non-Financial asset- capital expenditure (eg . Building)
4. Liabilities BY Mac-Effort K. Adadey 30

More on Expenditure Classification
2.1 Compensation of Employees 2.2 Goods & Services
2.1.1 Established Position 2.2.1 Materials and Office Consumables
2.2.2 Utilities
2.1.2 Arrears
2.2.3 General Cleaning
2.1.3 Non-Established Post 2.2.4 Rentals/Lease
2.1.4 Other Allowances 2.2.5 Travel and Transport
2.2.6 Repairs and Maintenance
2.1.5 National Pension Contribution 2.2.7 Training, Seminar and Conference Cost
2.2.8 Consultancy Expenses
2.2.9 Special Services
2.2.10 Other Charges and Fees
2.2.11 Emergency Services
2.2.12 Insurance
BUDGET REPORTS
What is a Budget Report ?
❑A budget report, also known as Budget Execution Report (BER) is
an internal report used by management to compare the estimated or
budgeted projections with the actual performance numbers achieved
during a period.
❑BERs are basically the set of management reports that provide

information on budget executions for decision making
❑These are the different types of reports that explain how the
budgetary appropriations are being utilised based on specific
information requirements of managers of entity or public funds
Preparing the Budget Report
❑Since budgets are financial goals based on estimates and future
projections, they are often inaccurate and can differ largely from the
actual financial performance of an entity.
❑During a fiscal period, managers often compare the budgeted
numbers that were prepared at the beginning of the period to the
actual numbers ( the outturn). This serves two main purposes:
a) First, managers can correct problems occurring to make the
performance more inline with the financial goals in the budget.
b) Second, they can evaluate how realistic and accurate their predictions
were. If their predictions were way off during the period, they can
adjust their next budget accordingly.
Preparing the Budget Report…
❑There are usually two columns listed side by side for the budgeted
numbers and the actual performance results for the period.
❑Often there is a third column added to list, the variances.
❑Favorable variances occur when the actual numbers are better than the
budgeted numbers. These are marked with an F in the margin.
❑Unfavorable variable are just the opposite. When actual numbers are
worse than budgeted number, a U written in the margin identifying the
poor results in that area.
❑ A number of these reports are available on the GIFMIS which can
be generated by users
Types of BER
Name Of Report Uses
1 Appropriation Report - It shows the approved budget for an MDA for the
MDA year at Cost Center Level
2 Appropriation Report - It shows consolidated approved budget for all
National MDAs
3 Ceilings Report MDA It shows the appropriation, ceilings and
reallocation by item and MDA
4 Budget Release Report - It shows budgetary releases to an MDA by Item
MDA (COE, G&S, ASSETS) against Appropriation by cost
center
5 Budget Release Report - It shows budgetary releases to all MDA by Item
National (COE, G&S, ASSETS) against Appropriation
Types of BER…
Name Of Report Uses
6 Actual Expenditure Report It shows actual expenditure of an MDA
(INVOICE) - MDA by Item against Releases per invoices
approved on GIFMIS by cost center
7 Actual Expenditure Report It shows actual expenditure of all MDA

(INVOICE) - National by Item against Releases per invoices
approved on GIFMIS
8 Commitment Report (PO) - Shows the sum of PO Approved but yet
MDA to be Invoiced by cost center
9 Commitment Report (PO) - Shows the sum of PO Approved but yet
National to be Invoiced by MDAs
Sample BERs
THE GIFMIS
Outline
1. Meaning of GIFMIS
2. Objectives of GIFMIS
3. Legal basis for GIFMIS
4. Core GIFMIS Modules
5. The GIFMIS P2P Process
6. Some implementation challenges
What is GIFMIS?
❑GIFMIS stands for Ghana Integrated Financial

Management Information System
❑It is an integrated computerized financial
management system for:
❑Budget Preparation
❑Budget Execution
❑Accounting and Financial Reporting
❑Cash Management.
❑Assets management
❑Human resource and payroll
management
What is GIFMIS…
❑The PFM Act 2016 defines GIFMIS as the
electronic platform used by the Government to:
a) manage commitments made against
appropriation,
b) process payment claims,
c) record revenue and expenditure transactions, and
d) produce monthly, quarterly and annual financial
reports;
Objectives of GIFMIS
❑The key objectives of GIFMIS include to:
a. Improve accuracy, comprehensiveness, reliability, and timeliness of financial
and fiscal reporting at all levels of government
b. Provide credible financial information for better and informed decision-
making;
c. Promote accountability and transparency of the PFM processes
d. Provide the platform for the implementation of IPSAS
❑The rollout of GIFMIS began in 2012 with the MDAs subsisting on

Consolidated Fund resources prior to its extension to cover other public funds
namely as IGF, Statutory Funds and Donor Funds at the Central Government
entities and then to the MMDAs.
❑Deployment of other components of GIFMIS is also ongoing- i.e budget,

HRMIS, etc.
Scope of GIFMIS
• Budget
• Financial
• Central Govt. Accounting
Entities (MDAs) • HRMIS
• Local Gov’t • Payroll
(MMDAs) • Audit
• Procurement
• CS-DMRS (Debt. Mgt. syst.)

• E-Monitor/ E-payment (Non- • Consolidated Fund
tax rev. sys) • IGFs
• TRIPS & GCMS (Tax rev. syst)
• T-24 & SWIFT (Banking syst.) • Statutory Funds
• Donor Funds
LEGAL BASIS FOR GIFMIS
Regulations 13 and 14 of the PFM Regulations
2019 (LI 2378) provides for the establishments,
uses, components and responsibilities for
GIFMIS as follows:
1. Establishment of GIFMIS
❑(1)…the Minister shall establish an
integrated computerised financial
management information systems known as
Ghana Integrated Financial Management
Information Systems (GIFMIS) and other
related electronic platforms.
Legal Basis for GIFMIS…
2. Uses of GIFMIS
❑(2) The GIFMIS shall be the core electronic platform of Government
to be sued for:
a) budget preparation,
b) budget execution,
c) revenue management,
d) expenditure administration,
e) cash management,
f) asset management,
g) debt management,
h) payroll management,
i) accounting and financial reporting,
j) human resource management, and
k) public investment management
❑by a covered entity to improve efficiency in managing public funds
including the Consolidated Fund, internally-
generated funds, statutory funds and donor funds.
3. Components of GIFMIS
❑The GIFMIS includes the following components:
1. Financial Accounting System
2. Payroll System;
3. Human Resource Management Information Syste
m;
4. Strategic Planning and Budget System;
5. Debt Management System
6. Revenue System
7. Public Investment Management System;
8. Treasury and Fund Transfer System
9. Procurement System;
10. Public Investment and Asset Management System;
and
11. any other system determined by the Minister.
Legal Basis for GIFMS: Responsibilities
(PFMR 14)
The Minister for Finance
❑(1)The Minister has overall responsibility for the inst
allation and operations of the components of the
GIFMIS and shall provide the policy guidelines
for the use of the GIFMIS
The Head of Covered Entity

❑ (2) The heads of covered entities responsible for th
e implementation of the GIFMIS as specified in sub-
regulation (3) of regulation 13 or as determine by the
Minister, shall ensure that the necessary provisions and
protocols are put in place to ensure efficient running
of the systems as prescribed by the policy.
Responsibilities of the User of GIFMIS
❑ (3) A user of the GIFMIS shall be granted access to the GIFMIS and the
authorised access that is granted to a user shall constitute a valid signature for
transactions on the system
❑ (5) A user of the GIFMIS is personally liable for the improper use of the
system for the transaction that the user is authorised to process, review,
approve or access on the systems
❑ (6) Records, logs or audit trail generated from the GIFMIS is admissible at
law as valid evidence in the case of any malpractice or malfeasance
perpetrated on the system
❑Section 25 (6) of the PFM Act 2016 (Act 921) states “Where a covered entity
enters into a contract or any other arrangement that commits or purports to
commit Government to make a payment, the contract or arrangement shall be
approved by the Principal Spending Officer of that covered entity and the
Principal Spending Officer shall enter the contract or arrangement into the Ghana
Integrated Financial Management Information System (GIFMIS)”.
❑Section 98(b) states “A person who issues a local purchase order outside the
Ghana Integrated Financial Management Information System or any other
electronic platform in use by Government, commits an offence and where no
penalty is provided for the offence, is liable on summary conviction to a fine of
not less than one hundred and fifty penalty units (GHC1800) and not more than
two hundred and fifty penalty units (GHC3,000) or to a term of imprisonment of
not less than six months and not more than two years or to both”.
CORE MODULES OF GIFMIS
Budget System
• Hyperion Planning Plus

Oracle • for Strategic Planning
• Hyperion Public Sector Planning and
Hyperion Budgeting
• for Costing
(MoF) • Hyperion Project Financial Planning
• for Project & Contract mgt.
Revenue Systems
Tax Revenue Non-Tax

Financials
(GRA) Revenue
Accounts
e-Monitor
TRIPS Receivable
(MoF)
Module (CAGD)
e-Payment
GCMS
(NITA)
Financial Accounting System
• Purchasing module
• for Purchase Requisition, Purchase Order, SRA
IFMIS • Accounts Payable module

• for PVs, accounting (Dr. & Cr.) & accruals
• Cash Management module
Modules • for EFT, ABR & cash forecasting
• Accounts Receivable module
• for recording revenue
(CAGD) • Fixed Assets Module

• for fixed assets register & accounting for fixed assets
• General Ledger
• for holding budget, warrants & financial reporting
The HRMIS
Employee
Establishment Employee Cost
Profile
Management Management
Management
For position For

For control budgetary
Employee (Organisations,
Locations, control over
bio-data
Grades, Jobs, payroll cost
Positions and
position
hierarchies)
Payroll System
IPPD (Integrated
• For paying salaries of government
Personnel Payroll
employees and pensioners (CAP
Database) at
30)
CAGD
• ESPV validations
• E-PVs
Sub-systems • E-pay slips
• Bio-metric systems
Procurement System
• E-Catalogue
e-Procurement • for catalogue-based tenders
• E-Attestation
Modules • for supplier profile and database
• E-Registration
(PPA) • for user registration and management
• E-Notification
“to enhance • for publishing procurement notices & and granting access
transparency, to tender documents
• E-Tendering
compliance, • for submission of tenders
provide common • E-Awarding
platform for • for opening & evaluation of tenders
• Contract & Project Management (CPMS)
effective • for contract and project management
competition “ • Spend Glass
• for reporting and business analytics
Debt Management System
•For recording and

CS-DRMS tracking of domestic
(MoF) and external
borrowings
Cash Management Systems
• Electronic Funds Transfer (EFT)

IFMIS CM • Automatic Bank Reconciliation
• Cash Forecasting
• For tracking government bank

B-Tracking balances at BoG and Commercial
banks
Assets Management System
IFMIS FA •Fixed Assets

Module Register
•Accounting for Fixed
Assets
GIFMIS Procure-To-Pay Process
❑The following expenditure processes (called P2P) have been
electronically configured on the GIFMIS:
1. Budgeting
2. Expenditure Initiation
3. Purchase Ordering
4. Store Receipting
5. Payment
6. Records of payment documents
GIFMIS Expenditure Process
❑The approved Budget is first loaded and activated on the

GIFMIS at the beginning of the financial year.
❑Budget is released on the GIFMIS via Warrant, as required
by law
❑Users can make request for release of Budget (i.e Warrant) on the
system
❑Expenditure cannot be processed on GIFMIS without budget
GIFMIS Process…
Once budget is released on the system, the following processes
follow:
1. Purchase Requisition (for expenditure initiation)
2. Purchase Order (when supplier is selected)
3. Stores Receive Advice (when goods/services are taken
on charge)
4. Payment Voucher/Invoice (to pay for the transaction)
GIFMIS Process…
5. Run Cash requirement report to establish total bills due for payment
6. Run cash pooling report to establish total cash available on the bank
accounts of the entity. That is if the bank accounts are all setup on the
system and updated promptly.
7. Make payment on the system
❑Electronic Funds Transfer for 3rd parties transactions
❑System Cheques for moneys required for internal payments
❑NB: dummy payments are made on the systems for the entities not yet connected to the EFT
functionality
GIFMIS EFT Process
GIFMIS Cheque
GIFMIS Expenditure Controls
❑The P2P processes are configured on Approval Hierarchies (at least 3 levels)
to ensure segregation of duties
❑Matching rules (Invoice-to-SRA-to-PO) are applied to ensure payment for only
goods received and accepted, except transactions requiring no PO (eg T&T,
allowances, etc)
❑Financial docs created (PV, PO, SRA, PR, etc) are also electronically available
and can be printed out for reference, thus addressing the fears of missing
financial documents
GIFMIS IMPLEMENTATION CHALLENGES
1. Inadequate ICT infrastructure across the

country
❑Network connectivity
❑Computer and accessories
2. Low level of computer literacy in the
public sector
3. Inadequate capacity building for users
and support team
4. Inadequate post implementation support
for user entities
5. Low commitment towards usage
The End

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TRAINING ON

PUBLIC SECTOR BUDGETING & THE GIFMIS

Facilitator: Mac-Effort K. Adadey

Public Sector refers to:

To provide basic or essential services to all citizens regardless of ability to

To fulfil legal requirements for their establishment

❑PFM encompasses a broad set of functions commonly conceived as a cycle of

Annual budget must reflect three paramount multi-annual considerations:

a) The future recurrent costs of capital expenditures

b) The funding needs of entitlement programs (for example debt service

c) Contingencies that may result in future spending requirements (for

There are different budgeting concepts that an entity or a country can

❑Rather than assuming that overheads/ costs are related to

❑This provides more robust information for budget

Translating strategic goals and objectives into performance measures can be

Information may need to be presented in appropriate formats to a variety of

A lack of political acceptance of reform may prevail. Performance information

❑Public funds of Ghana are therefore categorised as follows:

Fees, fines and licenses by public entities

Returns on Public Investments (Interests, Dividends, etc.)

3. Assets (formerly investments)

3. Assets (formerly investments)

4. Liabilities BY Mac-Effort K. Adadey 30

❑BERs are basically the set of management reports that provide

7 Actual Expenditure Report It shows actual expenditure of all MDA

❑GIFMIS stands for Ghana Integrated Financial

❑The rollout of GIFMIS began in 2012 with the MDAs subsisting on

❑Deployment of other components of GIFMIS is also ongoing- i.e budget,

• CS-DMRS (Debt. Mgt. syst.)

The Head of Covered Entity

• Hyperion Planning Plus

Tax Revenue Non-Tax

IFMIS • Accounts Payable module

(CAGD) • Fixed Assets Module

For position For

•For recording and

• Electronic Funds Transfer (EFT)

• For tracking government bank

IFMIS FA •Fixed Assets

❑The approved Budget is first loaded and activated on the

1. Inadequate ICT infrastructure across the

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