Project for Strengthening Public Financial Management

The objective of the Strengthening Public Financial Management Project for Micronesia is to improve tax administration and the completeness, reliability and timeliness of financial reports of the National and State Governments. The project has 5 components. 1. Strengthening the public financial management environment component will strengthen the Public Financial Management (PFM) environment by ensuring that the legal and regulatory framework and the procedural guidance for business processes governing budget formulation, budget execution, and financial reporting for revenues and expenditures are internally consistent, aligned with the applicable accounting guidance, and streamlined for efficiency. The scope will include all five governments, each of which has its own set of regulations and procedures. 2. Financial management information system component will implement a new Financial Management Information System that will support effective management of public resources and improve financial reporting for management and accountability. 3. Revenue Management System (RMS) component will improve the efficiency and effectiveness of revenue management for the National Government of the Federated States of Micronesia (FSM). 4. Change management and human resource development component will successful implementation of the FMIS and the RMS with active stakeholder engagement and development of individual competencies and institutional capacity needed to sustain FMIS and RMS operations and related PFM functions. The project will support capacity building in the Department of Finance and Administration (DoFA) and other agencies with key roles in the PFM cycle such as the Office of the National Public Auditor. 5. Project management component will support overall project management and coordination.