The Turks and Caicos Islands (TCI) government has significantly improved the performance of its Public Financial Management (PFM) according to a leading European Union (EU) assessment, it was announced today, Wednesday, 27 May 2015.
The TCI’s 2015 Public Expenditure and Financial Accountability (PEFA) assessment showed substantial improvements across a range of indicators since its previous assessment in 2011. The PEFA assessment is widely used by the World Bank and EU.
“The timing of this announcement could not be better in bolstering our nation’s rapidly improving financial reputation,” said Minster of Finance Washington Misick.
“We are also due to have our annual credit rating assessment by Standard & Poor’s in the next few weeks, so the news that we have made such significant improvements in public financial management I am sure can only benefit us in the longer term.”
The PEFA assessment examines seven key areas known as indicators, each with a number of sub areas known as dimensions.
The TCI’s improved performance saw it increase its top rated A grade dimensions from 12 to 30, and its B grade dimensions from 17 to 20. These increases saw dramatic improvements from the C and D grades which fell by the same amounts.
The indicators include: Credibility of the Budget; Comprehensiveness and transparency; Policy-based budgeting; Predictability and control in budget execution; Accounting, recording and reporting; External scrutiny and audit; Donor Practices.
This repeat assessment of the TCI was commissioned by the EU as part of its preparations for providing up to €14.6 million in direct budget support to the education sector under the 11th European Development Fund.
PEFA assessments are intended to serve as a common information base for dialogue between participating governments and development partners.
The PEFA PFM Performance Measurement Framework (PMF) is one of the elements of the Strengthened Approach to supporting PFM reforms developed by the World Bank, the European Commission and other development partners. This Approach has three components: (i) a country-led PFM reform strategy and action plan, (ii) a coordinated programme of activities financed by development partners which supports and is aligned with the government's PFM reform strategy, and (iii) a shared information pool. The PEFA PMF assessment constitutes the third component.
Note to editors:
- A copy of the PEFA assessment is available at http://www.gov.tc/treasury/index.php/publications/government-financial-reports/8-pefa-assessment-report