Enhancement of fiscal risk oversight of local public enterprises (fiscal risk monitoring and control)


Local governments exercise their owners’ prerogatives of overseeing the operation of local public enterprises (LPEs). These firms have also been identified as a key source of fiscal risk, which ought to be addressed by enhancing their oversight and risk management, as well as by improving corporate governance at the businesses in question.

 

As part of this component, interested local governments will be given support to enhance oversight of LPEs, enhance their corporate governance, and develop reporting arrangements both to local authorities and the central-level Ministry of Economy (MoE).

 

The following activities are planned as part of this component:

 

  • Assessment of local government capacity and readiness to oversee LPEs;
  • Technical support for the development of a scorecard to measure corporate governance at LPEs for use by local governments;
  • Training for city/municipal councillors in oversight of LPEs (importance, role, functions, and responsibilities of members of supervisory boards, financial reporting, transparency, and the like);
  • Training for local government staff in using the new MoE reporting software (the software application is under development in co-operation with the MoE);
  • Training and technical support for local government staff in preparing consolidated financial statements for submission to the MoE;
  • Training for members of supervisory boards of LPEs (importance, role, functions, and responsibilities of members of supervisory boards, financial reporting, transparency, and the like);