SPSP – Support to Public Finance Management Reforms – Phase II – Georgia

PFM Sector Policy Support Programme (2nd Phase), including implementation of the SAI capacity development plan and application of modern financial and performance audit methodologies.
 
The total budget for the Programme was 21 mill USD which includes inter alia support to the SAI.
 
While the IMF does not implement specific technical assistance (TA) projects with the government, it can be noted that “Structural Benchmarks” related to public finance were set under well-progressing IMF programmes.
GIZ is helping the State Audit Office in drafting the performance audit methodology. It is also providing management support to the State Procurement Agency. In addition, GIZ is in the process of providing technical assistance and training to the Ministry of Finance to help in development of audit methodology according to Institute of Internal Auditors (IIA) standards.
In the last two years, the National Audit Office of Sweden and the State Audit Office of Georgia have been closely cooperating to develop financial audit manual and to conduct pilot audits moving towards International Standards for Supreme Audit Institutions (ISSAI). Georgia’s State Audit Office (SAO) has also established good cooperation with SAIs of Latvia and Lithuania so as to carry out, with the assistance of those colleagues, pilot audits in order to test relevant methodologies.
 
Strengthening external audit is one of the key results of the programme. The focus in on:
 Increased harmonization with International Organisation of Supreme Audit Institutions (INTOSAI) Lima and Mexico Declarations with specific attention on Independence, Objectivity and Impartiality and on improving SAO services to Parliament and citizens
 Developed and implemented financial and performance audit standards according to international best practises
 Developed and implemented external communication with a special attention to the public and to the Parliament.