see also...
Accountability at local level
In recent years, public expenditure tracking surveys have found leakage of non-wage funds on a very large scale in some countries. Given, for example, that the availability of books and other materials are essential to improving the quality of schooling, the fact that between 50% and 90% of government funding for these inputs never actually reaches schools makes leakage a major policy concern in the education sector of many developing countries.
Instead of introducing more general public-sector reforms, the public expenditure tracking surveys in Uganda show that it may be more efficient to target reforms and interventions at specific problem spots. For example, the public expenditure tracking surveys in 1996 pointed to the fact that non-wage expenditure is much more prone to leakage (theft) than expenditure on salaries. The surveys also demonstrate that leakage occurs at specific points within the Government (typically in local governments). This knowledge has been used to implement more focused and hence more efficient interventions.
Following publication of the first public expenditure tracking survey findings, the Ugandan central Government made a swift attempt to remedy the situation. It began publishing the monthly intergovernmental transfers of public funds in the main newspapers, broadcasting information on them on radio, and requiring primary schools to post information on inflows of funds for all to see. This not only made information available to parent-teacher associations, but also signalled to local governments that the centre had resumed its oversight function. An evaluation of the information campaign using a repeat public expenditure tracking survey revealed significant improvements. While schools on average are still not receiving the entire Government grant (and there are delays) capture or leakage has been reduced from an average of 78% in 1995, to 18% by 2001.
Ensuring that selected financial information is provided promptly to key stakeholders can significantly reduce the opportunities for theft of public-sector funds from, for example, local schools and health centres. The information provided can include the total funds allocated to the local units and also how these funds have been used by the local managers.
Financial reports comparing the annual budget of a local public-sector entity with the actual payments and receipts made by the entity in the latest period should be made available to key stakeholders, for example, local elected representatives, staff, trade unions, parent- teacher associations, etc. This information should also be provided publicly on notice boards, etc. and should be reported to the local press and other mass media. Monthly meetings should be held, at which the local stakeholders can question, eg, the head teacher or head of the health centre on the financial reports, recent payments and receipts and staff appointments.
ACCA considers that accountability, integrity and openness are the key pillars of governance. At a local level, within public-sector organisations, openness and accountability can have the additional benefits of being important safeguards against fraud, corruption and other irregularities.
Public Expenditure Tracking Surveys (PETS)
One of the most popular measures to try and reduce corruption are Public Expenditure Tracking Surveys. These were designed to provide information from different tiers of government and frontline service facilities. PETS studies have been implemented in Uganda, Tanzania, and Ghana since 1996 to quantify the problems of 'asymmetric information' in public spending (manifested in the leakage of public funds). In these three countries the surveys confirmed that leakage of non-wage public funds seriously obstructs social service delivery.