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UPP Municipal Finance Self-Assessment Workshop in Sarajevo, Bosnia and Herzegovina

Categories: Events, Workshops | Author: Maja | Posted: 9/27/2017 | Views: 7613

MFSA workshop Sarajevo

 

On September 12th, 2017, Urban Partnership Program (UPP) gathered representatives from Bosnia and Herzegovina (BiH) cities and municipalities (municipalities of Novo Sarajevo, Odžak, Orašje, Žepče, and cities of Tuzla and Zenica) in Sarajevo, Bosnia and Herzegovina, to discuss municipal finances and share experiences, challenges and best practices with their peers from other cities and municipalities.

 

Focus of the workshop was to present the Municipal Finance Self-Assessment (MFSA) tool to new participating municipalities. Two cities that joined MFSA family in July 2017- Tuzla and Zenica (two of the largest cities from BiH) expressed their interest to critically analyze their own financial performance with support of the UPP and by using MFSA tool. During the workshop, it was identified that one of the biggest obstacles and issues for the participating municipalities is data collection and reliability of data sources needed to carry out MFSA. Also, lack of disaggregated socio-economic data for municipal finance assessments and reviews represents significant concern for the municipalities. There are several available sources that publish consolidated data for local governments, such as Central bank of BiH, and Ministry of Finance FBiH. It was mutually agreed by all participants to use most reliable socio-economic disaggregated data published by the Federal Institute for Development Programming in order to have unified MFSA data for all local governments. With sufficient data, cities and municipalities will be able to determine the level of efficiency and effectiveness of their spending of public funds, determine priority of public investments, and be prepared for dialogue with higher level of governments (i.e. Cantons or Federation), citizens, donors, investors in public private partnership schemes (PPPs), creditors.

Second part of the Workshop was dedicated to public expenditure and financial accountability of local governments (PEFA) tool for assessing the status of public financial management (PFM) and thorough, consistent and evidence-based analysis of PFM performance. Participants expressed their interest to prepare Action Plans on how to improve their financial condition and appreciate UPP technical and capacity support to perform ratio analysis and to draft the Plans.

The cities and municipalities were very satisfied with the outcomes of this workshop and valued the opportunity to share and discuss important issues of joint interest as well as receive strategic and technical support from UPP team.

 

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Sarajevo, 25-26. 9. 2018

On September 25-26, 2018 in Sarajevo, Bosnia and Herzegovina, the Urban Partnership Program gathered around 50 participants from cities and municipalities from Bosnia and Herzegovina, Montenegro and Serbia, as well as representatives from the Ministry of Finance and Ministry of Sustainable Development and Tourism from Montenegro, and Local Government Associations from these countries to exchange best practices and discuss solutions regarding the most important issues concerning local finances and development, in a trusting and familiar context.

The UPP has been strengthening financial management and supporting capacity building with a network of local experts in the region through the Municipal Finance Self-Assessment and related tools. In the latest UPP survey, conducted in June 2018, 67% of respondents confirmed that the MFSA helped improve the financial management of municipalities and 73% that the UPP helped access funding to finance local, national or regional urban projects. The success of the program, which has involved more than 80 municipalities and 500 practitioners and decision makers, is mainly due to regular interactive technical workshops and learning events where participants have the opportunity to discuss municipal finances and share experiences with their peers from neighboring countries and beyond.

The main focus of the workshop was the presentation of the new MFSA V2.0 application to participants after the testing phase and before its official launch. All finance experts pointed out that the tool supports local government’s decision-making process considerably, through readily visible financial management trends, possible interventions, and benchmarking. This tool can also be used for capital investment planning, debt management and presenting results to potential donors, but it also provides arguments for discussions with the ministries of finance on issues of fiscal decentralization. The MFSA V2.0 application is currently being tested with users, revised and customized, and it will soon be fully released and disseminated.

During the first day of the workshop, participants had a chance to exchange experiences on common challenges related to a number of topics, including how to design capital investment plans; citizen engagement in decision making (with special focus on participatory budgeting) which focused on showing the advantages and methods of citizen involvement for improved development results and the PEFA (Public Expenditure and Financial Accountability) methodology on which the MFSA was partly based. Finance experts led a group exercise were participants were asked to create an implementation plan for 6 selected capital projects for designated municipalities. All groups successfully completed the exercise demonstrating a different level of readiness to diversify external sources of funding for capital projects. For more information please see the full summary report.

The second day of the workshop started with sharing experiences from outside of the Western Balkans region and showcasing the model of Iller Bank in Turkey, a development bank, and its Sustainable Cities Project. Ilbank has been very successful in supporting municipalities with funding and technical assistance and the team aims to encourage municipalities in Turkey to use the MFSA for capital investment plans and to improve analysis, decision making and overall financial management. During the course of the day, participants had the opportunity to discuss systems of debt management related to fiscal decentralization (% of VAT received by municipalities), legalization processes for objects and properties, and how to establish successful models of Public Private Partnerships. Great example was given by the Mayor of City of Koprivnica, from Croatia, where the main factor of success was the excellent quality of the consultants and the precisely detailed maintenance clauses in the 25-year lease contract. The cities and municipalities appreciated the opportunity to share and discuss important issues of joint interest, compare laws and regulations, provide suggestions and support to one another, and to pose questions to the Ministries and LGA representatives in a safe environment.




PHOTO GALLERY


Documents:


DAY 1
Banja Luka PKI.pdf
CIP Funding Lj. Brdarevic.pdf
Citizen Engagement - S. Kdolsky.pdf
GRAD PANCEVO-UCESCE GRADJANA U PROCESU BUDZETIRANJA.pdf
GRAĐANSKI VODIC KROZ BUDZET 2017 GODINE.pdf
GRAĐANSKI VODIC KROZ BUDZET 2018 GODINE.pdf
MFSA-PEFA.pdf
SUBOTICA_PKI D. Rodic.pdf
UPP Survey overview.pdf

DAY 2
BEOGRAD_Upravljanje dugom R.Peric.pdf
Debt management BiH _ RS and FBIH.pdf
Ilbank PMU Presentation 26.09.2018.pdf
Ilbank Presentation 26.09.2018.pdf
JPP Gimnazija Grad Koprivnica.pdf
Legalizacija bespravnih objekata - M.Čanović.pdf
Legalizacija u Baru - D.Raicevic.pdf
Osnove javno-privatnog partnerstva - A.Bajo.pdf
PPPs in Serbia Lj. Brdarevic.pdf


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