Improving public sdctor accountability and results monitoring, the Peruvian Experience

IMPROVING PUBLIC SECTOR ACCOUNTABILITY AND RESULTS

MONITORING, THE PERUVIAN EXPERIENCE

Miami, May 2011

JUDICIAL BRANCH

JUDICIAL BRANCH

JUDICIAL BRANCH

PUBLIC BUDGET

PUBLIC RESOURCES

PUBLIC POLICIES

PUBLICAGENCIES

A CONSTITUTIONAL STATE NEEDS EFFICIENT, EFFECTIVE CONTROLS ON THE MANAGEMENT OF PUBLIC FUNDS .

Treasury Inspector's Office of the RepublicSupervises, watches and verifies public management

actions and results.

INTRODUCTION

Impact on the Citizens

PERUVIAN MACROECONOMIC CONTEXT AND PUBLIC

EXPENDITURES IN RECENT YEARS

GDP: 20 Years of Gross Domestic Product Growth

Mill

ions

of

US$

MACROECONOMIC CONTEXT

Source : CENTRAL RESERVE BANK OF PERU / INTERNATIONAL MONETARY FUND

275,720

70,493

5 years of accelerated growth: 2004-2008

GDP: 9 years of rates of change of GDP consistently above the global average

Peru (1)

World (2)

Source : (1)CRBP (2) IMF


GDP Per Capita: Sustained Growth Over the Last Decade

Projection for the next 3 years

Source : MINISTRY OF ECONOMY AND FINANCE

US$


Balance of Trade: Growth in Exports and Imports, with Trade Surplus

Mill

ions

of

US$

Source : CENTRAL RESERVE BANK OF PERU

Trade Surplus since 2002


INR: 20 Years of Sustained Growth in International Net Reserves (83.2 times increase over 1990)

Mill

ions

of

US$


44,105

530


Domestic Demand: 20 Years of Sustained Growth in Domestic Demand

(2.6 times increase over 1990)

Mill

ions

of

US$


217,833

82,264


Major Reduction in the Ratio of Public Debt / GDP

(%

) Public

Debt

/ G

DP



Reduction in Inflation Rate Volatility

Before Application of the MEI With Application of the MEI


11 Years of Sustained Growth in Public Expenditures

Source: MINISTRY OF ECONOMY AND FINANCE

Mill

ions

of

US$

GOVERNMENT SPENDING

31,160

7,381

Increase in Capital Expenses as a Percentage of the Total Non-Interest Expenses of the Central

Government

Current Expenditures

Capital Expenditures


GOVERNMENT SPENDING

INVESTMENT OUTLOOK

FAVORABLE CLIMATE FOR INVESTMENT

Ranking Country

1 Mexico

2 Peru

3 Colombia

4 Chile

5 Puerto Rico

World BankDoing Business 2011

Peru occupies the second place in the region in terms of national attractiveness for investments.

Country S&P Fitch Moody's

Chile A. A. Aa3

Mexico BBB BBB Baa1

Brazil BBB- BBB Baa3

Peru BBB- BBB- Baa3

Colombia BBB- BB+ Ba1

Venezuela BB- B. B2

Argentina B. B. B3

Bolivia B. B. B1

Ecuador B. B. Caa3

Investment Grade Rating

Source: Standard & Poor’s, Fitch Ratings and Moody’sUpdated April, 2011

FAVORABLE CLIMATE FOR INVESTMENT

Ranking Country Points

1 Peru 275,720

2 Colombia 275,720

3 Chile 275,720

4 Uruguay 275,720

5 El salvador 275,720

6 Bolivia 275,720

7 Brazil 275,720

8 Dom. Republic 275,720

9 México 275,720

10 Guatemala 275,720

Ranking Country Points

1 Peru 275,720

6 China 275,720

8 Switzerland 275,720

9 France 275,720

10 Holland 275,720

11 Mexico 275,720

17 Argentina 275,720

35 Brazil 275,720

39 Chile 275,720

41 Colombia 275,720

Ranking Country ECI

1 Peru 7,381

1 Uruguay 7,381

2 Chile 7,381

3 Brazil 7,381

4 Paraguay 275,720

5 Colombia 275,720

7 Argentina 275,720

8 Mexico 275,720

9 Bolivia 275,720

10 Ecuador 275,720

Source: Getulio Vargas Foundation in Brazil and the IFO Institute Germany. 2011

Source: World Economic Forum, The Financial Development Report 2009

Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in Infrastructure. 2007

Benchmarking National Attractiveness for Private Investment in Infrastructure.

World Benchmarking Macroprudential Indicators of Financial System Soundness.

Benchmarking Economic Climate Index (ECI) in Latin America

World Economic Forum Getulio Vargas Foundation

Conclusion

Within a context of economic growth and increased government spending, while promoting greater investment in the country, a decisive factor are the transparency and accountability mechanisms that contribute to the adequate oversight and monitoring of government management results, in order to translate ithe mprovements made in macroeconomic variables into improved social conditions for its population..

STRENGTHENING AND MODERNIZATION OF THE

TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC

19

Vision •"To be recognized as an institution of excellence, that creates value and contributes to improving the quality of life of our citizens."

Mission •"To promote the development of an effective and modern system of public resource management that benefits all Peruvians."

Values •Honesty, Justice and Sound Judgement

DEFINING A NEW VISION, MISSION AND VALUES

20

DEFINING INSTITUTIONAL PROCESSES

Legal Management, Violations and

Sanctions

Management of Security

H.R. Management

Logistics Management

Financial Management

Academic Management

Documentary Management and

Administrative Support

ICT Management

MACRO PROCESSES OF THE MISSION

SUPPORT MACRO PROCESSES

Compliance AuditingCompliance Auditing

Financial AuditingFinancial Auditing

Management AuditingManagement Auditing

Citizen Participation and Transparency

Citizen Participation and Transparency

Rules and Regulations

Management

STRATEGIC MACRO PROCESSES

Quality Management

Environmental Management

Strategic Planning and Management

Control

Research and Development Management

PlanningSanctions

Management

A

C

T

I

O

NA

C

T

I

O

NM

onit

ori

ng N

eeds

and W

ants

of

the

Monit

ori

ng N

eeds

and W

ants

of

the

Cit

izens

and t

he G

overn

ment

Cit

izens

and t

he G

overn

ment

Sati

sfact

ion a

nd T

rust

of

the C

itiz

ens

and

the G

overn

ment

Planning and Action

Management

Information Intelligence

ManagementInternal Auditing

21

STRATEGY MAP 2011-2013

Vision Objectives

Mission Objectives

Enabling Steps

A. Achieve a high level of trust and support from the citizens.

B. Define, design and implement the New Plan for Monitoring and Fighting Against Corruption.

C. Define the Clients, Products and Services.

D. Reorganize, decentralize and integrate the Treasury Inspector's Office of the Republic.

E. Establish a new Model for Human Talent

Management.

F. Design and implement Policies,

Processes and Guidelines for the New

Monitoring Plan.

G. Obtain the Technology and

Information Systems to support the new

processes.

H. Secure adequate Infrastructure and an efficient scheme for

administrative support.

Promote the development of an effective and modern system of public resource management that benefits all Peruvians.

Be recognized as an institution of excellence, that creates value and contributes to improving the

quality of life of our citizens.

22

MODERNIZATION STRATEGY

ENSURING VALUE GENERATION FOR SOCIETY

Human Resources Human Resources ManagementManagement

Project ManagmentProject Managment Managment of TechnologiesManagment of Technologies

Working ClimateWorking Climate Process Re-EngineeringProcess Re-Engineering New ImageNew Image

Modernization of the National System of Monitoring

New Plan for

Monitoring

Organizational

Structure

Strategic

Alliances

Results-Based

Management

DeconceDeconcentrationntration

DecentraDecentralizationlization

Knowledge

Management

NewCulture

PER

UV

IAN

PER

UV

IAN

GO

VER

NM

EN

TG

OV

ER

NM

EN

T CIT

IZEN

S

22

23

THE NEW MONITORING PLAN

Integral Control

PreventivPreventive Controle Control

Product / Product / Client Client Focus Focus

SpecializSpecialized Auditsed Audits

Public Public Policy Policy

ComplianCompliance ce

EvaluatioEvaluationn

PerformaPerformance nce

AuditsAudits

IntelligenIntelligence and ce and

InformatiInformation on

AnalysisAnalysis

AdministAdministrative rative

SanctionSanctionssP

UB

LIC

R

ESO

UR

CES

DEV

ELO

PM

EN

T

AN

D

WELL-B

EIN

G

CONTRIBUTION WITH GOVERNMENT REFORM

CRITICAL FACTORS IN THE FIGHT AGAINST CORRUPTIONIntern

al Contro

l Process and

Project Manage

ment

Results-Based

Management

TranspareTransparencyncy

Accountability of Officials

Disseminating

Values

Public Agencies

GO

VER

NM

EN

T

MA

NA

GEM

EN

T MO

DER

N,

EFFIC

IEN

T

GO

VER

NM

EN

T

In the 2001-2010 period, of the total number of recommendations on administrative operations responsibility, sanctions were enforced in only 25.2% of the cases.In 2011, the Congress of the Republic granted sancitioning power to the Treasury Inspector's Office (CGR).

SANTIONING POWER

Treasury Inspector's Office of the Republic of

Peru

Miami, May 2011

THE NEW MANAGEMENT MODEL FOR THE

TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC

MASTER PLAN FOR THE TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC 2011-2013

NEW MANAGEMENT MODEL (TO BE)

Improving public sdctor accountability and results monitoring, the Peruvian Experience

Economy & Finance

Transcript of Improving public sdctor accountability and results monitoring, the Peruvian Experience