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

Categories: Events, Workshops | Author: Maja | Posted: 9/27/2017 | Views: 3114

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.


Bookmark and Share

Return to previous page




"The MFSA tool is very useful and can help LGs assess their financial performance and look for additional financing. On the other hand, it is a huge responsibility to translate the budget into strategies that will drive LG's development",
Reisa Duraj, Head of Finance and Treasure Relations Sector of the Shkoder Municipality, Albania

"This capacity building program will enhance knowledge and skills of local governments, particularly of medium and large cities."

 All testemonials >>>



The role of local governments has been evolving with increasing responsibilities and capacity gaps remain and need to be addressed. Local governments in South-East Europe (SEE) are particularly challenged by the status of decentralization, mismatch of revenue and expenditure management, absence of infrastructure investments, weak local institutions, weak mechanisms of social accountability, increased need to combat corruption, frequent shifts in political structures, and low speed of institutional reforms.

The World Bank –Austria Urban Partnership Program (UPP) was designed to strengthen capacities of local governments in South-East Europe (SEE), and to promote city to city exchange and peer learning within and beyond Europe. The Program aims to equip local elected officials, city administrators and technical staff with practical tools for decision-making, to effectively manage urban development for inclusive and sustainable growth

While global in scope, the Program is targeted at the Western Balkan countries, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia.

UPP Phase I (2011-2014) was shaped by the demand of municipalities and local government associations and was focused on key dimensions of local government, including municipal finance, urban planning and land management, urban governance/anti-corruption, and social accountability. Through the sustained effort of providing practical tools that met actual needs, UPP I has achieved a strong take-up by municipalities in each of the four program areas.

UPP Phase II (2015- 2018) builds on the successful first phase and includes:

I. A comprehensive, three-tier approach to knowledge, learning, and innovation, combining:

(i) e-learning to share global knowledge (facilitated by local experts);
(ii) a series of City-to-City (C2C) dialogues for intensive peer learning from global/regional good practices
(iii) use of practical hands-on diagnostic tools and participatory processes.

II. Capacity building activities focusing on four key dimensions of interest to local governments, including: (i) municipal finance, (ii) urban planning and land management, (iii) urban governance/ anti-corruption, and (iv) social accountability.

III. Support to the Network of Associations of Local Authorities of South-East Europe (NALAS) to become a regional knowledge and e-Learning hub in order to ensure the flow of knowledge and sustained learning impact beyond the UPP.

The aim of the Second Phase of the Program is to scale up the use of LG diagnostic tools and to anchor them as part of the municipal practice; expand citizen engagement and integrity building agenda and support urban resilience in SEE cities; foster involvement of different departments (finance, planning, technical) and civil society to integrate the different tools and approaches at local level; foster central-local government dialogue for improved policy making; support local governments in the implementation of the Action Plans developed in UPP I; and leverage partnership for greater impact and reach.