The Financial Framework Review, since its inception in 2010, moved at a slow pace until this year (2016) when the pace has increased substantially. The FFR has took a holistic approach and comprised of reviews on Public Finance (Management) Act (PFMA) 1995, Financial Management Manual (FMM) and the Financial Instructions.
As part of the Implementation of PEFA Road Map reforms, the National Government through the National Executive Council (NEC) has finally approved an additional budget funding of K2million for the Financial Framework Review to support the Public Financial Management (PFM) reforms; (NEC Decision No: 288/2015 (gazetted)).
A Technical Advisor to lead the Financial Framework Review (FFR) was engaged for 9 months by European Union after a diplomatic approach by the Government of PNG. The Department of Finance appreciates the level of assistance from the European Union, as well as other donor partners (Canberra Finance-Australia, Asian Development Bank, IMF), for the FFR project since inception.
The FFR Project is guided by approved Terms of Reference. The FFR Project time-line is fixed and the draft Bill is expected to be introduced in Parliament in June Sittings – 2016 Parliamentary Calendar.
Members of the Technical Working Group comprised of the departments and agencies of Finance (Chair), Treasury, National Planning, Prime Minister & NEC, Personnel Management, Constitutional Law Reform Commission (CLRC), State Solicitor’s Office, Office of Auditor-General, Central Supply and Tender Board (CSTB), Works, Health, Education and a Representative of Provincial Treasurers.
The FFR Secretariat was established to provide high level of technical support to the FFR Project. It is comprised of key Technical Officers of the Department of Finance appointed by the Secretary, to undertake this very important national project.
The FFR Team has had several meetings with key state agencies outside of the normal TWG meetings, for example –
|VERSIONS||PARTS OF PFMA||PROGRESS||COMMENTS PERIOD||DELIBERATION/ COMMENTS|
|Version 1||I & II||Review completed (FFR Team)||FFR Team 1wk TWG Team 2wks||FFR Team|
|Version 2||I, II & III||Review completed (FFR Team)||FFR Team 1wk TWG Team 2wks||FFR Team|
|Version 3||I, II, III, Viii & Delegation||Review completed (Both FFR Team & TWG)||FFR Team 1wk TWG Team 2wks||TWG & FFR Team|
|Version 4||I, II, III, IV, V, VA, VI, VIII & IX||Review completed (Both FFR Team & TWG)||FFR Team 1wk TWG Team 2wks||TWG & FFR Team|
|Version 5||I, II, III, IV, V, VA, VI, VII, VIII, IX, X, XI, & XII||Review completed (FFR Team)||FFR Team 1wk||FFR Team|
|Version 6||I, II, III, IV, V, VA, VI, VII, VIII, IX, X, XI, & XII||Review completed (Both FFR Team & TWG)||FFR Team 1wk TWG Team 2wks||TWG & FFR Team|
NOTE: FFR Version 6 does not include Transitional (Part XIV) or savings clauses – these are for State Solicitor and Legislative Council lawyers to discuss with FFR Team.
For further information on the Government’s Public Finance Management Reform Project please contact the Financial Framework Review Secretariat on telephone numbers: 3288208, 3288606, 3288117, 3288124 or email: ffr.QandA@finance.gov.pg