Public Financial Management (PFM) refers to the processes and systems that
governments use to manage public resources. This encompasses the entire financial
lifecycle, from planning and budgeting to controlling, reporting, and auditing.
Efficient PFM ensures that public funds are used effectively, transparently, and
accountably to achieve policy objectives.
Attributes of Good Financial Management Systems
Transparency: Clear and accessible financial information to the public and
stakeholders to promote accountability and trust.
Accountability: Mechanisms that ensure those managing public funds are held
responsible for their actions and the outcomes of their financial decisions.
Efficiency: The ability to achieve desired outcomes with minimal resource wastage,
optimizing the use of public funds.
Comprehensiveness: Ensuring all government financial activities, including offbudget and extra-budgetary activities, are included in the financial management
system.
Predictability: Reliable resource allocation and budget execution to ensure that
government commitments can be met without unexpected financial shortfalls.
Control and Compliance: Strong internal controls to maintain compliance with laws,
regulations, and policies governing public fund usage.
Responsiveness: The ability to adapt to changing circumstances and address
emerging financial and service delivery needs promptly.
Participation: Engaging with stakeholders, including the public, in the financial
planning and budgeting processes to reflect collective priorities and needs.
Sustainability: Ensuring that financial strategies and practices are sustainable in the
long term, avoiding excessive deficits and debt levels that could jeopardize future
fiscal stability.
A good PFM system supports the effective delivery of public services, enhances
public trust, and enables better decision-making regarding the use of public resources.
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Regulatory Framework of Budgeting in Bangladesh
The regulatory framework for budgeting in Bangladesh is shaped by several legal and
institutional aspects:
Constitution of Bangladesh: The Budget preparation and approval process is guided
by the Constitution of the People’s Republic of Bangladesh, particularly Chapter II on
Legislative and Financial Procedures (Articles 81-92).
Public Money and Budget Management Act, 2009: This Act establishes guidelines
for obtaining, using, and managing public funds.
Budget Management Committees: These committees in various ministries ensure
resource allocations align with strategic priorities and goals.
Ministry of Finance: Plays a central role with important divisions like Finance
Division, Economic Relations Division, and Internal Resources Division overseeing
the budget process.
Planning Commission and Line Ministries: Support the budgeting process ensuring
that national priorities are met.
Medium Term Budget Framework (MTBF)
The MTBF is a crucial component of Bangladesh’s budgeting process:
Objective: Establishes a clear link between budget allocation and government
policies, ensuring fiscal discipline, efficient resource allocation, and operational
efficiency.
Duration: The MTBF typically covers a three-year period, combining an annual
budget with projections for the next two fiscal years.
Components:
Mission Statements: Describes the goals and objectives of various ministries.
Strategic Objectives: Align budget allocations with the government's long-term
strategic plans.
Key Performance Indicators (KPIs): Measures of performance related to resource
allocation and expenditure.
Process:
Initial Resource Ceilings: Provided to ministries to prepare realistic expenditure
plans.
Budget Circulars: Issued by the Finance Division to guide ministries in formulating
their budgets.
Ministry Budget Frameworks (MBFs): Prepared by ministries and submitted for
approval, linking strategic priorities to resource allocation
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Public-Private Partnership (PPP)
A Public-Private Partnership (PPP) is a cooperative arrangement between
government bodies and private sector companies. This partnership facilitates private
investment and expertise to develop and manage public infrastructure projects or
services, often leading to improved efficiency, innovation, and resource optimization.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) are 17 global objectives established by
the United Nations in 2015. They aim to address pressing challenges like poverty,
inequality, and climate change, with the target of achieving a more sustainable,
equitable, and prosperous world by 2030.
Integrated Budget and Accounting System (iBAS++)
The Integrated Budget and Accounting System (iBAS++) is an advanced financial
management system adopted by the Government of Bangladesh. It seamlessly
integrates budgeting, accounting, and financial reporting processes, enhancing
transparency, accuracy, and efficiency in managing public finances.
International Public Sector Accounting Standards (IPSAS)
The International Public Sector Accounting Standards (IPSAS) are a set of
accounting standards issued by the International Public Sector Accounting Standards
Board (IPSASB). These standards provide guidelines for public sector entities to
ensure high-quality, transparent, and comparable financial reporting, promoting better
accountability and decision-making in the public sector.
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The Comptroller and Auditor General (CAG) performs several types of audits to
ensure accountability and transparency in public sector financial management. Here
are the primary types:
1. Financial Audit1
Objective: Provides an independent opinion on whether the financial statements of an
entity present a true and fair view of its financial position and performance.
Scope: Includes examining the adequacy and effectiveness of internal controls,
adherence to accounting standards, and the accuracy of financial records.
2. Compliance Audit1
3. Objective: Assesses whether an entity follows applicable
laws, regulations, rules, and policies.
Scope: Involves checking compliance with statutory regulations, internal rules, and
procedural guidelines.
3. Performance Audit
Objective: Evaluates the efficiency, effectiveness, and economy of government
programs and initiatives.
Scope: Focuses on assessing whether resources have been used appropriately to
achieve desired outcomes, identifying areas for improvement.
4. IT Audit
Objective: Assesses the controls and effectiveness of Information Technology
systems within the public sector.
Scope: Includes evaluating the integrity and security of IT systems, assessing
compliance with IT policies, and ensuring data accuracy.
5. Thematic Audit
Objective: Examines specific themes or topics across multiple entities.
Scope: Involves focused audits on particular issues, such as environmental policies,
procurement practices, or child welfare programs.
6. Transaction Audit
Objective: Reviews individual transactions to ensure they are correctly recorded and
authorized.
Scope: Involves auditing specific financial operations such as payments, receipts, and
procurement transactions.
These audits conducted by the CAG help promote good
governance, accountability, and efficient use of public
resources. They ensure public funds are managed effectively,
transparently, and in compliance with relevant regulations.
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Finance Ministry
The Finance Ministry of Bangladesh plays a critical role in managing the financial
affairs of the government:
Formulating Fiscal Policies: This includes budget development, taxation, and
revenue collection1. It ensures resource allocation aligns with the government's
strategic priorities1.
Managing Public Funds: Overseeing public sector finances, including expenditure
control, public debt management, and financial reporting1.
Economic Policy: Shaping economic policies to foster sustainable economic growth
and economic stability.
Financial Regulations: Implementing financial regulations and monitoring
compliance to uphold financial integrity.
Comptroller and Auditor General (C&AG)
The C&AG is an independent constitutional authority responsible for ensuring
accountability in the management of public funds:4
Auditing Government Accounts: Conducting financial audits of government
transactions to ensure accuracy and completeness3.
Compliance Audits: Ensuring that government expenditures comply with relevant
laws, rules, and regulations.
Performance Audits: Assessing the economy, efficiency, and effectiveness of
government programs and services.
Reporting to Parliament: Submitting audit reports to the President, who presents
them to the Parliament, facilitating oversight and accountability.
Controller General of Accounts (CGA)
The Controller General of Accounts (CGA) oversees the accounting and financial
reporting functions of the government:
Financial Reporting: Preparing and consolidating financial statements for the
government. This includes monthly and annual financial reports7.
Managing Accounts: Overseeing the management and reconciliation of government
accounts.
Supporting Ministries: Providing financial data and insights to various ministries
and divisions to support decision-making.
Disbursement of Funds: Ensuring accurate and timely payments of government
expenses, including salaries and pensions.
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(i) World Trade Organization (WTO)
The World Trade Organization (WTO) is an international organization established
in 1995 to regulate global trade. It provides a framework for negotiating trade
agreements, and a dispute resolution process to enforce participants' adherence to
WTO agreements. The main goals of the WTO are to ensure that trade flows as
smoothly, predictably, and freely as possible.
(ii) Antidumping Duty
Antidumping Duty is a protectionist tariff imposed by a domestic government on
foreign imports that it believes are priced below fair market value. This duty is used to
protect local businesses and markets from unfair competition with overseas producers
who dump products at a price lower than their normal value.
(iii) International Public Sector Accounting Standards (IPSAS)
International Public Sector Accounting Standards (IPSAS) are accounting
standards for the public sector issued by the International Public Sector Accounting
Standards Board (IPSASB). These standards seek to enhance the quality,
comparability, and transparency of public sector financial reporting. IPSAS promotes
the accrual basis of accounting, ensuring that governments and public sector entities
provide comprehensive and reliable financial information.
(iv) Integrated Budget and Accounting System (iBAS++)
The Integrated Budget and Accounting System (iBAS++) is an advanced financial
management system used by the Government of Bangladesh. It integrates budgeting,
accounting, and financial reporting processes to enhance transparency, accountability,
and efficiency in public financial management. iBAS++ helps streamline the financial
operations of the government by providing real-time accurate data and ensuring
compliance with financial regulations.
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Sure! Here are four main types of audits performed by the Comptroller and Auditor
General (C&AG) of Bangladesh:
1. Financial Audit
Objective: To provide an independent opinion on the financial statements of
government entities.
Scope: This audit examines the accuracy and completeness of financial records,
evaluates the adequacy of internal controls, and ensures compliance with accounting
standards.
2. Compliance Audit
Objective: To ensure that financial transactions comply with relevant laws,
regulations, and policies.
Scope: This includes checking if government organizations adhere to statutory
requirements and established procedures, thus promoting accountability and
transparency.
3. Performance Audit
Objective: To assess the effectiveness, efficiency, and economy of government
programs and initiatives.
Scope: Performance audits evaluate whether resources have been used wisely to
achieve intended outcomes, identifying areas for improvement and best practices.
4. IT Audit
Objective: To evaluate the controls, security, and effectiveness of Information
Technology systems within government entities.
Scope: This audit assesses the reliability, integrity, and security of IT systems,
ensuring they comply with established IT policies and effectively support the
organization's operations.
These audits collectively help in enhancing public sector accountability and ensuring
the efficient use of public resources.
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Procurement management under Public-Private Partnership (PPP) frameworks
involves a set of key features and steps designed to ensure successful collaboration
between the public and private sectors. Here are some of the essential attributes:
Key Features of Procurement Management under PPP
Transparent Bidding Process: Ensures fairness and competitiveness by inviting bids
from multiple private entities. This process often involves pre-qualification to identify
capable bidders.
Detailed Contractual Agreements: Clearly defines the roles, responsibilities, and
expectations of both parties. Contracts in PPP projects are more complex and
comprehensive, covering aspects like performance standards, payment mechanisms,
risk allocation, and dispute resolution mechanisms.
Risk Sharing and Management: Identifies and allocates risks between public and
private partners based on their ability to manage and mitigate those risks. This
includes financial, operational, and construction risks.
Performance Monitoring and Evaluation: Establishes benchmarks and key
performance indicators (KPIs) to assess the private partner’s performance against
agreed standards. Continuous monitoring ensures the project meets its objectives and
delivers value for money.
Financial Structuring and Viability: Ensures the project’s financial structure is
sound, with clear funding sources, whether it’s equity, debt, or government grants.
Mechanisms like Viability Gap Funding (VGF) may be used to make projects
financially viable.
Lifecycle Approach: Focuses on the entire lifecycle of the project, from planning and
construction to operation and maintenance. This approach ensures that the project is
sustainable and beneficial in the long term.
Legal and Regulatory Compliance: Ensures that both parties comply with all
relevant laws, regulations, and standards. This includes environmental, labor, and
safety regulations to avoid legal complications and ensure ethical practices.
Capacity Building and Stakeholder Engagement: Builds the capacity of public
sector entities to manage PPP projects and engages stakeholders throughout the
project lifecycle, ensuring transparency and addressing community concerns.
These features ensure that PPP projects are managed effectively, delivering highquality public services while leveraging the efficiency and expertise of the private
sector.
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The Public Accounts Committee (PAC) is a crucial parliamentary committee
responsible for ensuring accountability and overseeing the expenditure of public funds.
Here are the main roles and responsibilities of its members:
Roles and Responsibilities of PAC Members:
Examining Public Expenditure: PAC members scrutinize government spending to
ensure it's been used efficiently, effectively, and in compliance with regulations. They
examine the accounts and financial statements of government departments and public
sector organizations.
Auditing Government Programs: PAC members review audit reports prepared by
the Comptroller and Auditor General (C&AG) to evaluate the performance and
financial management of government programs. This helps identify inefficiencies,
wastage, and areas for improvement.
Holding Inquiries: The PAC conducts inquiries into specific issues identified in audit
reports or brought up by committee members. These inquiries can involve summoning
government officials to provide evidence and explanations regarding the financial
management of public resources.
Reporting to Parliament: PAC members prepare reports based on their findings and
present them to Parliament. These reports highlight any irregularities, suggest
corrective measures, and recommend actions to ensure better financial management
and accountability.
Ensuring Compliance: The PAC monitors the implementation of its
recommendations by government departments and agencies to ensure compliance and
improvements in financial practices.
Enhancing Transparency: By overseeing public expenditure and holding
government entities accountable, PAC members play a significant role in promoting
transparency and public trust in the government's financial management.
The PAC acts as a watchdog, ensuring that taxpayers' money is spent wisely and
effectively, and that government officials are held accountable for their financial
actions
…………
World Trade Organization (WTO)
The World Trade Organization (WTO) is an international body established in 1995
to regulate and facilitate global trade. It provides a framework for negotiating trade
agreements and resolving disputes between member countries, aiming to ensure trade
flows smoothly, predictably, and freely.
Antidumping Duty
An Antidumping Duty is a protectionist tariff imposed by a government on foreign
imports believed to be priced below fair market value. Its purpose is to protect
domestic industries from unfair competition by leveling the playing field with
overseas producers who dump products at lower prices.
International Public Sector Accounting Standards (IPSAS)
International Public Sector Accounting Standards (IPSAS) are accounting
standards developed by the International Public Sector Accounting Standards Board
(IPSASB) for public sector entities. IPSAS aims to improve the quality, comparability,
and transparency of financial reporting in the public sector, promoting accountability
and better decision-making.
Integrated Budget and Accounting System (iBAS++)
The Integrated Budget and Accounting System (iBAS++) is an advanced financial
management system adopted by the Government of Bangladesh. It integrates
budgeting, accounting, and financial reporting processes, enhancing transparency,
accuracy, and efficiency in managing public finances.
Public Private Partnership (PPP)
A Public-Private Partnership (PPP) is a collaborative agreement between
government bodies and private sector companies. PPPs are designed to combine the
resources and expertise of both sectors to deliver public services or infrastructure
projects efficiently and innovatively, often involving shared risks and benefits.
….…………..
The Comptroller and Auditor General (C&AG) of Bangladesh plays a crucial role in
ensuring accountability and transparency in the management of public funds. Here are
the key roles and responsibilities:
1. Auditing Government Receipts and Expenditure
Objective: To examine and ensure the accuracy and integrity of financial statements
of government bodies.
Scope: This includes auditing all receipts and expenditure of the Government of
Bangladesh, as well as those of public sector entities substantially financed by the
government.
2. Compliance Audits
Objective: To verify that financial transactions comply with relevant laws,
regulations, and policies.
Scope: Evaluates whether public sector entities adhere to statutory requirements and
established procedures.
3. Performance Audits
Objective: To assess the economy, efficiency, and effectiveness of government
programs.
Scope: Focuses on evaluating how well public resources are managed, identifying
areas for improvement.
4. Reporting to Parliament
Objective: To provide comprehensive audit reports to enhance financial oversight by
the legislative branch.
Scope: The C&AG submits reports to the President, who then presents them to
Parliament for review and action.
5. Independent Oversight
Objective: To act as an independent body free from external influence.
Scope: The C&AG operates independently, with full access to necessary documents
and information to carry out audits effectively.
6. Advising on Financial Management
Objective: To provide recommendations to improve financial management and
governance in the public sector.
Scope: Offers insights and guidance on best practices, internal control mechanisms,
and risk management processes.
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The newly introduced Budget and Accounting Classification Systems (BACS) in
Bangladesh have several strengths that enhance the efficiency, transparency, and
accountability of public financial management. Here's an overview of the key
strengths:
1. Comprehensive Framework
The new BACS provides a comprehensive framework that integrates various
components of budgeting and accounting, ensuring that all financial activities are
captured accurately and systematically.
2. Compliance with International Standards3
BACS is designed to comply with international standards such as the International
Public Sector Accounting Standards (IPSAS) and the Government Finance Statistics
Manual (GFSM). This alignment ensures that Bangladesh's financial reporting is
transparent and comparable to international benchmarks1.
3. Enhanced Transparency and Accountability
By adopting a multi-dimensional classification system, BACS improves the ability to
analyze and report financial data. This enhances transparency and accountability, as it
provides detailed insights into government spending, revenue collection, and overall
fiscal performance2.
4. Better Performance Monitoring
The new system allows for better tracking of financial performance against budgeted
amounts1. This enables more effective monitoring of government programs and
initiatives, ensuring that resources are used efficiently and for their intended purposes.
5. Improved Decision-Making
With accurate and timely financial data, policymakers can make more informed
decisions regarding resource allocation and fiscal policy. The detailed classification
helps in identifying spending patterns and potential areas for cost savings.
6. Facilitating IT Integration
The new BACS is designed to be compatible with modern IT systems, allowing for
automated monitoring of cash flows, funds control, and expenditure tracking. This
integration streamlines financial management processes and reduces the risk of
errors2.
7. Enhanced Reporting Capabilities
BACS supports more detailed and granular financial reporting3. It provides the ability
to report on various dimensions such as location, financing source, and function,
making it easier to analyze and compare financial data.
8. Supporting Accrual Accounting
The system supports the adoption of accrual accounting in government, which ensures
a more accurate reflection of financial positions and performance. This method
recognizes revenues and expenses when they are incurred, rather than when cash
transactions occur.
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Absolutely! Effective and efficient Public Financial Management (PFM) hinges on
several crucial determinants. Here are a few key ones, along with illustrative
examples:
1. Fiscal Discipline
Definition: Ensuring government spending aligns with revenues, avoiding excessive
deficits and debt. Example: A government adhering to fiscal rules, like capping
budget deficits to a specific percentage of GDP, ensures long-term financial stability.
2. Revenue Mobilization
Definition: Generating adequate revenue through efficient tax collection and
expanding the tax base. Example: Modernizing tax administration with IT systems to
reduce evasion and broaden the tax base, leading to increased revenues for public
projects.
3. Budget Transparency
Definition: Providing clear, accessible, and timely budget information to the public
and stakeholders. Example: Publishing detailed budget documents and audit reports
online to promote public scrutiny and accountability.
4. Public Investment Management
Definition: Prioritizing and managing public investments to ensure high returns and
alignment with policy goals. Example: Implementing rigorous project appraisal and
selection processes to fund only those projects with the highest expected benefits.
5. Accountability and Oversight
Definition: Ensuring robust mechanisms for holding public officials accountable for
their financial decisions. Example: Establishing independent audit institutions like the
Comptroller and Auditor General to audit government financial activities.
6. Efficient Resource Allocation
Definition: Ensuring resources are directed to priority areas and used effectively.
Example: Adopting program-based budgeting that links resources to specific
outcomes and results.
7. Robust Internal Controls
Definition: Implementing strong internal controls to prevent fraud, waste, and
inefficiency. Example: Using automated financial management systems to track
expenditures and enforce compliance with budgetary constraints.
8. Capacity Building
Definition: Developing the skills and capabilities of public financial managers.
Example: Providing ongoing training programs for government accountants and
financial managers to keep them abreast of best practices.
9. Stakeholder Engagement
Definition: Actively involving stakeholders in the PFM process. Example:
Conducting public consultations during the budget preparation process to incorporate
citizen feedback and priorities.
10. Reliable Data and Reporting
Definition: Ensuring accurate and timely financial reporting. Example: Implementing
integrated financial management information systems (IFMIS) for real-time financial
data and reports.
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Basic Characteristics of Pure Public Goods:
Public goods provided by the state possess the following key characteristics:
Non-Rivalry: Consumption of the good by one individual does not reduce the
availability of the good for others.
Example: National defense; Everyone is protected without diminishing the level of
protection for anyone.
Non-Excludability: Individuals cannot be excluded from using the good, even if they
don't pay for it.
Example: Street lighting; Once provided, everyone in the area benefits from lighting
regardless of their contribution.
Reasons Why the State May Not Provide All Public Goods:
High Costs: Providing public goods often involves substantial financial outlays.
Example: Building and maintaining national infrastructure like highways or bridges
can be prohibitively expensive.
Free-Rider Problem: Individuals may benefit from the good without contributing to
its cost, leading to underfunding.
Example: If citizens expect others to pay for public transportation, they may refrain
from contributing, resulting in insufficient funds for upkeep and expansion.
Budget Constraints: Governments have limited resources and must prioritize
spending.
Example: A state may focus on healthcare and education, leaving less budget for other
public goods like parks and recreational facilities.
Political Considerations: Allocation of resources may be influenced by political
agendas and voter preferences.
Example: Investment in visible projects that garner political support might be
prioritized over less glamorous but equally crucial public goods.
Efficiency Concerns: Governments may not always be the most efficient providers
due to bureaucracy and lack of competition.
Example: Private entities might be more adept at managing some goods, leading
governments to partner with them instead of providing certain services directly (e.g.,
public-private partnerships in waste disposal).
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(i) Countervailing Duty
Countervailing Duty (CVD) is a tariff imposed by a country to offset subsidies
provided to foreign producers by their governments. These subsidies allow foreign
producers to sell products at lower prices, making it difficult for domestic producers
to compete. By imposing CVD, the importing country neutralizes the price advantage
gained by such subsidies, ensuring a level playing field for its domestic industries.
(ii) Anti-Dumping Duty
Anti-Dumping Duty is a protectionist tariff levied by an importing country on
foreign imports that are priced below fair market value, often below the cost of
production. This practice, known as "dumping," is intended to undermine domestic
industries. The anti-dumping duty raises the price of the imported goods to reflect
their normal value, preventing unfair competition and protecting local businesses
from being driven out of the market.
….………………
Medium Term Budget Framework (MTBF)
The Medium Term Budget Framework (MTBF) is a financial planning and
budgeting approach that spans multiple fiscal years. It is designed to improve fiscal
discipline, expenditure control, and the alignment of budget allocations with policy
priorities.
Objectives of MTBF
Fiscal Discipline: Establish and maintain aggregate fiscal
discipline by setting expenditure limits over a medium-term horizon.
Allocative Efficiency: Ensure resources are allocated to priority areas in alignment
with government policy objectives.
Operational Efficiency: Enhance the effectiveness of public expenditure by
prioritizing outcomes and performance.
Transparency and Accountability: Provide clear, accessible financial information to
facilitate oversight and accountability.
Effectiveness of MTBF
Policy-Driven Budgeting: MTBF fosters a more strategic approach to budgeting,
ensuring that allocations are closely linked to policy objectives and expected
outcomes.
Better Planning: By extending the budget planning horizon, MTBF helps in making
informed decisions and managing public resources more effectively.
Predictability: It provides a stable and predictable framework for funding, which is
essential for planning and implementing long-term projects3.
Enhanced Monitoring: MTBF includes performance indicators and targets, which
aid in monitoring and evaluating the impact of public expenditure.
In essence, MTBF aims to create a more disciplined, efficient, and transparent
budgeting process, aligning resources with national priorities and improving the
overall management of public finances.
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Constitutional Mandate of C&AG
The Comptroller and Auditor General (C&AG) of Bangladesh is an autonomous
constitutional authority established under Article 127 of the Constitution of the
People’s Republic of Bangladesh. Here’s a quick overview of the key aspects:
Establishment:
Appointment: The C&AG is appointed by the President of Bangladesh.
Independence: The C&AG enjoys complete independence in auditing and reporting
on government accounts, ensuring objective oversight.
Functions:
Audit and Reporting: The C&AG audits and reports on the public accounts of the
Republic, including government authorities, courts, and officers.
Access to Records: The C&AG has unrestricted access to all records, books,
documents, and other properties related to the audit.
Mandate Expansion: Parliament may require the C&AG to perform additional
functions by law.
Term and Conditions:
Term: The C&AG holds office for five years or until reaching the age of 65,
whichever is earlier.
Removal: The C&AG can only be removed in the same manner as a judge of the
Supreme Court.
Features of the Supreme Audit Institution (SAI) of Bangladesh
The Office of the C&AG, also known as the Supreme Audit Institution (SAI) of
Bangladesh, has several distinctive features:
Independence: The Constitution guarantees the C&AG's independence, ensuring
audits and reports are unbiased and objective.
Audit Scope: The SAI audits all government receipts, public expenditures, and the
financial performance of statutory public authorities, public enterprises, and local
authorities.
Comprehensive Audits: In addition to financial and compliance audits, the SAI
conducts performance audits that assess the economy, efficiency, and effectiveness of
government operations.
IT Audits: With the increased use of IT in government offices, the SAI has developed
an IT Audit cell to foster IT auditing activities4.
Reporting: The C&&AG submits audit reports to the President, who presents them to
Parliament.
Public Accountability: The reports are discussed by the Public Accounts Committee
(PAC) in Parliament, ensuring that findings and recommendations are addressed.
….………….
Tender Evaluation Committee
Tender Evaluation Committee (TEC) is a group constituted by the employer or
governing body to assess and evaluate the bids submitted in response to a tender. The
TEC is responsible for analyzing the technical and financial aspects of bids, ensuring
they meet the requirements outlined in the tender documents, and ultimately
recommending the most suitable bid for acceptance.
Steps of the Procurement Approval Process:
Need Identification:
Determine and document the need for goods or services.
Obtain requisition from the originating department.
Vendor Selection:
Research potential vendors and obtain multiple quotes.
Conduct prequalification if necessary to shortlist capable suppliers.
Request for Proposal (RFP):
Prepare and issue detailed RFP to selected vendors detailing requirements and criteria.
Tender Submission:
Vendors submit their bids according to the guidelines in the RFP2.
Ensure all required documents and information are included.
Tender Evaluation:
Conduct a thorough evaluation of bids through the TEC. Assess technical and
financial aspects to ensure compliance and value for money.
Negotiation:
Engage in discussions with the preferred bidder to finalize terms. Ensure mutual
agreement on all conditions and contractual obligations.
Approval:Obtain formal approval from the relevant authorities.Secure necessary
funds and budget allocations.
Contract Award:
Issue a contract award notice to the successful bidder.Ensure proper documentation
and signing of the contract by both parties.
Order Issuance:
Generate and submit purchase orders to the selected vendor.
Delivery and Inspection:
Monitor the delivery of goods or execution of services.
Conduct inspections to verify conformance with contractual terms.
Payment Processing:
Verify invoices and authorize payments upon satisfactory delivery.
Maintain accurate financial records for audit and accountability.
………………….
Legal/Constitutional Provisions of Government Accounts in
Bangladesh
Constitutional Mandate: Under Article 128 of the Constitution of Bangladesh, the
Comptroller and Auditor General (C&AG) is vested with the authority to audit public
accounts and report to the President.
Public Accounts Act: The Public Accounts Act provides a detailed framework for
the preparation, submission, and auditing of government accounts.
Treasury Rules: The Treasury Rules govern the control and management of public
funds, ensuring proper documentation and authorization of expenditures.
Components of Annual Financial Account
The Annual Financial Account consists of several key components crucial for
financial reporting:
Consolidated Fund: This is the primary account, comprising all revenues received by
the government, loans raised, and money received in repayment of loans.
Contingency Fund: A separate fund used for urgent and unforeseen expenditures,
needing Parliamentary approval.
Public Account: Includes funds that the government holds in trust or for special
purposes, such as Provident Fund deposits.
Revenue Account: Shows detailed earnings and spending of government departments,
highlighting the fiscal balance.
Capital Account: Records all capital receipts and expenditures, including
infrastructure investments and major projects.
Debt and Liability Statement: Documents the government's outstanding debts and
financial obligations.
Components of Appropriation Account
The Appropriation Account focuses on the distribution and utilization of funds
allocated by the government:
Annual Grant Statements: Provide a breakdown of funds allocated to various
departments and ministries.
Original Grants: The initial budgeted allocations for the fiscal year.
Supplementary Grants: Additional resources allocated beyond the original grants.
Expenditure Statements: Detailed records of how allocated funds were spent.
Savings and Excess: Highlight any savings (unspent funds) or excess expenditures
(overruns) compared to the allocated budget.
Audit Observations: Findings and comments from the C&AG on the appropriateness
and efficiency of fund usage.
Together, these components ensure comprehensive financial reporting, facilitating
transparency, accountability, and informed decision-making within the public sector.