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Performance-based budgeting

Technical Notes:

  • Frequently Asked Questions on the budget based on performance in the United Arab Emirates.

Presentations:

  • Preparation and application of performance-based budgeting in the United Arab Emirates
  • Transition from the budget to balance the input output
  • Improve the outcome of the budget.

Methodology

Technical Notes:

  • Guidelines for the preparation and application of performance-based budget
  • Determining the structure of programs and sub Programs

Atqakiet programs for the years 2006 - 2008

Technical Notes:

  • Guidelines for the preparation and application of performance-based budget
  • Form of programs for the 2006-2008 budget performance

Follow-up budget

Technical Notes:

  • Guidelines related to the quarterly report for the year 2006 - 2008
  • Quarterly reporting format for the budget of Performance 2006 - 2008

Glossary

  • Glossary of terms for the management of public spending in the UAE


Autonomous Agencies

  • The names of the Federal Ministries and Autonomous Agencies

PUBLIC EXPENDITURE REVIEW

Considered is a serious and periodical review of the matters relating to expenses and also to public expenditure management process in order to improve the use of government financial resources of great benefit and more in line with its needs and available financial resources.
There are three elements of analysis for each review:

  1. Within the resources: an analysis of the macroeconomic situation and the resulting resources expected to be available.
  2. The budget process: analyzing the process of budget preparation and control system, accounting, auditing and ways to enhance transparency.
  3. Expenditure patterns: budget allocations on the basis of functional and economic basis, within and between sectors according to priorities, and also to be compatible with the goals of politics, on the basis of the impact of spending on development and poverty reduction, on efficiency of expenditure in terms of yields and input use.

Systematic review of government spending:

Identify and implement a strategy for Public Expenditure Analysis: Given the multiple purposes of government spending and the various instruments and complaints from customers and stakeholders, it is essential that the work be guided by a coherent strategy. Defining a strategy for public expenditure analysis begins with a series of questions aimed at assessing the status of government spending in the state.
 Evaluating the Federal Budget: If we could determine the optimal allocation of spending to sectors they may not be able to apply the existing institutions realistically. If there is a budget for those expenses then they may not lead to desired outputs and outcomes because of institutional weaknesses. Conversely, when we want to improve the performance of institutions, we need to assess the allocation of government expenditure to measure progress. Therefore, this approach combines an analysis of expenditure allocations and the budget allocations to ministries and government agencies.
 

Strengthen the process of preparing the budget: the budget management process consists of parts:

  1. The operational functions of budget formulation and implementation
  2. The external functions of which have powers of oversight and scrutiny, evaluation and adoption of change.


Performance management

The challenge in the performance management process is to motivate government employees so that they give their best to implement the strategy of the Ministry or the independent body that they work for. In this context, you must first identify the responsibilities of each employee accurately and expected objectives to be achieved of their respective positions. More specifically, the objectives must be defined precisely and not randomly imposed on them by the hierarchy. It must be the subject of discussion, negotiation and agreement of all staff concerned. They have to be goal specific and measurable in order to verify without difficulty.

Comparison between the results already achieved and the results that have been declared by a sensitive issue, could not be trusted to check if the goals had been decided to take certain actions in case of failure to reach. On the other hand, the imposition of sanctions are continuing in the case of lack of access to, independently of the reasons for this failure will lead to a fear of risk and lack of ambition in setting targets in the future. And to find a compromise between these two issues is not easy, but it is very important so that the mechanism acts as a catalyst and is not disabled.

The other sensitive issue is the nature of the same goals. In the House of Commons it cannot be counted and results of public actions, unlike a company's sales volume can be calculated for the percentage of sales volume or profits. Often the government depends on the quality and the variables are unknown for the federal administration. All of this creates a controversial belief and a lot of hesitation on this subject, especially among those measuring the activity (output) and those measuring the impact (outcome).

Technical Notes:

Data and performance measures budget

Financial management and accounting

The modern information system and a comprehensive and integrated financial management is a system that follows:

  • Ability to meet the needs of accounting and financial management quickly and efficiently.
  • The ability to accommodate any future growth and development of financial management.
  • The ability to take full advantage of sophisticated communications infrastructures and the Internet and internal networks.

Such a system is composed of accounting software for the following areas:

  • Implementation and management of the budget
  • Accounts link
  • Management Accounts Payable and Procurement
  • Account Receipts
  • Human Resources Management
  • Operations and management of the payroll
  • Cash Management
  • General Ledger
  • Asset management
  • Asset Management


 1 - the structure of the federal accounts

Introduction to the new structure of the accounts which is comprehensive was done in fiscal year 2006 outlining the major components of the structure of the accounts include the following:

Classification of sources of funding: provides a means to track the source of funding for expenses. This code is of particular importance to the UAE as the government recorded direct funding to local budgets within the plan aggregate information. And include expenditures against the appropriate funding code, regardless of the structure. The classification of the sector and sub-sector provides a strategic overview of the distribution of budget resources between different sectors of the UAE economy.

Regulatory classification: It provides the basis for determining responsibilities for the daily management and tht work of the government. And shows the structure of the organizational hierarchy through a series of codes for ministries and departments of these ministries.

Category key sectors and sub-: and provides a strategic overview of the impact of the budget allocation between different sectors of the UAE economy.

Classification of the major programs and subsidiary: the basis for recording transactions relating to a major program or subsidiary that is operating under a specific organizational unit.

Economic classification provides a classification rule for the registration of a particular activity based on the type of transactions by which the government and its functions, also uses this classification in the economic analysis to determine the impact of those transactions on the market for goods and services, financial markets and the distribution of income.

The precise definition of items and sub-assemblies and the work of vital economic importance to the cost of budgets and analysis, especially in the classification of programs where the cost of services provided is an important measure of performance. The classification of items in most parts of the structure of the accounts in line with definitions is the analytical framework of the Government Finance Statistics Manual.

Functional classification of expense is to provide a strategic overview of how the distribution of budget resources between different economic sectors. This system is based on "United Nations Classification of Functions of Government" (COFOG), a detailed classification of the functions, or social objectives - economic government units aim to achieve through various ports to provide services.

Technical Notes:

  •   Shift from a budget classification system, a more comprehensive structure of the accounts

Presentations:

  •  Classified budget of the United Arab Emirates
  •  What is the structure of the accounts?

2 - Accounting

Accounting on an accrual basis, revenue is counted when the sale occurs and expenses are recorded upon receipt of goods and services. While in the cash accounting, revenue is counted when you receive cash and expenditure is counted when cash is actually paid. In addition, the accrual basis of accounting transactions that contain non-cash depreciation and reserves example of bad debts, etc. ... These non-cash transactions that have cash value and contribute to the financial situation of the Federal Government.

The basic elements necessary for accounting on an accrual basis:

3 - Expenditure

When expenditure is recorded on an accrual basis records expenses unpaid credits and recorded in the general budget.

4 - Income

When you record income on an accrual basis records income that has not yet received in the account debtor and registered in the public budget.

5 - Assets and Liabilities

Determine the most basic rules of cost and life of the assets if the asset will be recorded as expense in the year of purchase or capitalized and recorded in the book of fixed assets. And walk the line depreciation is usually either in a straight line or declining with increasing age of the asset.

Assets and liabilities in the general budget and raise the proportion of depreciation.

Technical Notes:

  • What is the accrual basis of accounting?
  • What is the information system for financial management?
  • A comparison between cash accounting and accrual basis of accounting

- Treasury management

As part of the ongoing development of the Ministry of Finance, the Oracle cash management solutions to the specific accounting information system in the new (FMIS) to assist the Federal Government to manage and control its cash efficiently.

This program provides comprehensive bank reconciliation and cash forecasting a more flexible manner. It also allows the automatic loading of bank statements electronically, including automatic bank reconciliation and analysis of the results and summarize and transfer of information to subsidiary records and an adjustment to the general ledger.

Up for cash flow information to the prediction of cash in the cash management module from the receivables, order entry and general ledger modules.

The Cash outflow information comes from the payments, procurement, payroll and general ledger.

The use of these functions gives the Ministry of Finance and Industry plans monetary tools that help in forecasting cash flows to and from the federal government and the ministry can determine the cash needs and evaluate the attitude of the Federal Government in terms of liquidity.

- Audit

There are three basic types of check:

Financial Audit: It covers the process of examining the financial statements and report them, and examination of accounting systems upon which those financial statements.

Checking on compliance with the rules: which means legal and administrative compliance and integrity of management and financial systems and management control systems.

Checking the level of performance (or spending to achieve the results): This type of audits, which assess management and operational performance (economy, efficiency and effectiveness) of public programs, and ministries and agencies in using resources to achieve specific objectives.

1 - Internal Audit:

  Is a thorough examination of financial performance or to meet the administrative requirements of management. The specific objectives of the internal audit is to monitor management control systems and reporting to senior management on weaknesses and make recommendations to improve the situation.

The internal audit function contributes to the effectiveness of controls that are the responsibilities of management.

While the responsibilities and activities vary among federal agencies, the main purpose of internal auditing is to provide an independent and objective to add value and improve the federal agency's operations.

2 - External Audit:

Audit carried out by an independent third party (for example, an auditor or auditing firm). Unlike the internal audit carried out by government employees. Mostly, the external audit is for legal reasons. While internal audit is to manage reliable.

- Capacity-building

    The Ministry of Finance is currently the permanent support for capacity building in all relevant federal agencies. The main objective of the training courses organized by the Ministry of Finance is to present all issues related to public expenditure - fiscal policy and financial analysis, management and institutions to officials at both central and local levels. Participants are introduced to the concepts related to these issues and provided with practical tools that are used in daily work. Became known currently has significant implications for the management of government expenditures and involving officials of the Federal Government in identifying problems and take appropriate action to address weaknesses.

Since there is considerable work in terms of analytical and process the Ministry of Finance and Ministry of Planning and some selected ministries such as the Ministry of Education and Ministry of Health, etc. ....), the training program depends largely on the UAE officials as lecturers and discussants. It includes a large number of lectures on the study of some cases at the level of each lecture in a small allocation of time for discussion.

  In education, for example, expenditures represent a large proportion of the total government expenditures. The allocation of those resources did not achieve the best results to date. Therefore, the training courses in the Ministry of Finance and the Ministry of Education is a good opportunity to discuss the reasons behind the public expenditure and funding of the education and discussion of recent evidence on education outcomes. Was invented and ministries of finance and education are also methods to analyze the educational expenses.

  Another example is provided by the Ministry of Finance with the Ministry of Health on the use of training courses to apply the principles of public expenditure analysis in the health sector. Through these courses are also discussed reasons for the deterioration in the market sector and how to use data and other analytic techniques in the context of the review

 
 
 
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