This learning activity will be delivered as part of the Strategic Planning and Budgeting (SPB) project, funded by the European Union. The overall objective of the project is to contribute to strengthening of beneficiary countries' capacity to design and implement medium-term macro-fiscal policy.
About the course
Budget execution is the stage of the public finance process that starts with the formal parliamentary enactment of the budget and ends with the closing activities of the fiscal year, when the final accounting statement is submitted to parliament. The purpose of the execution process is to effectively and efficiently manage the use of resources approved by parliament to achieve the stated goals of the government.
This course will introduce you to the critical issues both before and during the budget execution process. It will describe the organizations involved in the process, both directly and indirectly. It will discuss the role of the treasury, as well as processes that a ministry of finance typically carries out to guide all government spending units in executing their budgets.
Course structure
The e-learning course is structured around two core units, each lasting one week.
We will start the course with Unit 0, a time to become familiar with the course on-line platform and meet course participants, facilitators, and organizers.
Unit 1
Budget Execution Systems: Steps, Responsibilities, and Preconditions for Successful Budget Execution
National budgets can be described as the expression and allocation of resources to allow implementation of government policies and priorities; and the framework for service delivery. Problems in budget execution often reflect a poorly formulated budget; for example a lack of credibility and/or realism in preparing a budget. In Unit 1 we will look at how budget execution processes are linked with budget formulation, review the stages of the expenditure cycle, discuss the responsibilities of different government organizations involved in budget execution, and look in detail into preconditions for successful budget execution. Here we will address typical problems that arise during the execution process, such as new spending requirements, changes in the macroeconomic environment, challenges in financing the budget, reasons for the incurrence of payment arrears, especially during economic down-turns, and/or difficulties in managing and accounting for foreign (aid) flows.
Unit 2
Chart of Accounts, Treasury, and Cash Management
To effectively execute a budget a comprehensive chart of accounts is an essential tool, which defines the organization of ledgers and provides a framework for recording and analyzing the execution of the budget. We will look at the key elements of a usable chart of accounts. We will specifically address the relationship between the chart of accounts and the government’s general ledger with the budget classification system, how to establish a sound framework of policies and procedures for the budget execution process, the role of internal control as a management tool for ensuring that budget funds are being managed and spent in accordance with policies and procedures, as well as the importance of a credible budget execution monitoring system at all stages of the expenditure cycle including the role of commitment control and arrears monitoring and reporting.
The unit also looks at the treasury function as one of the key fiscal institutions of the government’s public financial management system. We will discuss different types of treasury organization, and identify good international practice. We will end the unit with the role of good cash management in ensuring that funds are available when needed and that interest earnings on excess funds are maximized. We will specifically look into some of the innovations in modern cash management.
Who should attend
This e-learning course provides an opportunity to learn and share experience for officials who participate in budget execution processes in ministries of finance and line ministries in EU candidate and potential candidate countries covered by the Instrument for Pre-Accession Regulation and beneficiaries of the Strategic Planning and Budgeting project: i.e. participants from Albania, Bosnia and Herzegovina, Croatia*, Kosovo**, Macedonia, Montenegro, Serbia, and Turkey.
No fee will be charged for the course. However, a maximum of 4 participants per beneficiary country will be accepted to the courses. The final selection of participants will be made by the CEF.
The course will be highly participatory, and participants will be encouraged to share their experience with their colleagues throughout the course.
The course will be delivered in English. Therefore, participants are required to have to be proficient in this language.
Course details
To maximize the benefit from the course, a commitment of around 7 to 10 hours each week will be necessary to allow sufficient time to go through all the materials and respond to questions or work with other course members on specific assignments.
A certificate of completion will only be awarded to participants who complete each of the weekly assignments.
Assignments must be submitted on time in order to start the next unit and receive a certificate at the end. The course facilitators will inform participants of all deadlines.
