GUYANA Effective institutions and systems of public financial management How Disaster Resilient is (PFM) play a critical role in the preparation and response to Guyana’s Public Financial disasters. Strong PFM ties together often scarce available resources with their appropriate and sustainable use to ensure Management? that governments can function reasonably well even in times of disasters. Figure 1: Extent to which disaster resilience and recovery considerations are integrated into key PFM functions and processes. Guyana Regional Average Regional Frontier Full F Advanced A Moderate M Basic B Low L PFM Resource Gender Sensitive Expenditure Information Procurement Public Rules and Planning Resource Tracking Systems and Procedures Investment Regulations Allocation Record Keeping Management Institutional Budget Expenditure Auditing Procurement Procurement Public Asset Arrangements Appropriation Controls Practices Planning Templates and Management for PFM Documents NOTE: The assessment is based on the “Disaster Resilience systems by pinpointing critical PFM policies, practices, foundations; budget appropriation arrangements; financial and Recovery Public Financial Management Review”, and procedures that can be strengthened to improve management controls; procurement arrangements, and developed by the World Bank Group’s Governance Global a government’s capability to respond more efficiently public investment and asset management. Countries Practice, Latin America and Caribbean Team in 2019. It and effectively to disasters, without loss of the integrity assessed in the sample include Antigua and Barbuda, is an analytical instrument that seeks to help countries and accountability. The DRR-PFM review focuses on five Belize, Dominica, Grenada, Guyana, Jamaica, St. Lucia, and build resilient, responsive public financial management key elements of the PFM system: legal and institutional St. Vincent and the Grenadines. KEY STRENGTHS LEGAL AND INSTITUTIONAL FRAMEWORK BUDGET APPROPRIATION • ICT data back-up processes are well • Defined protocols on who and when to • Availability of a contingencies’ fund to documented. declare emergency events. support disaster response. • The legal framework outlines procedures for • Submission of warrants for disaster related PUBLIC PROCUREMENT execution of disaster budgetary resources. expenditure to approval can be done within a day. • Flexibility in procurement practices allows for • Centralized entity responsible for the overall expedited contracting. coordination of disaster response activities. FINANCIAL MANAGEMENT CONTROLS • Mechanisms in place that reduce the risk of fraud or misappropriation of post-disaster spending. KEY CHALLENGES OPPORTUNITIES LEGAL AND INSTITUTIONAL FRAMEWORK Budgeting rules do not explicitly address how to respond quickly to Provision of specific support for disaster response in PFM-related disaster emergencies. legislation. Legal framework not in place for electronic payments and cloud storage. Introduction and adoption of new laws to enable installing cloud storage and enabling electronic payments. BUDGET APPROPRIATION No documented instructions exist for accelerating disbursements of funds Streamlined and documented steps to expedite the management of in post-disaster situations. public funds in post-disaster situations. Low compliance with requirements to prepare and submit disaster Development of sector-specific disaster preparedness and response preparedness and response plans. plans for spending units to improve readiness to react to disasters. Limited menu of disaster risk financing options. Development of a comprehensive disaster risk financing policy and strategy. Inclusiveness and gender-sensitive considerations are absent in the Strengthened collection and use of sex-disaggregated social data to allocation of resources for disaster response. inform budget allocations for disaster management activities. FINANCIAL MANAGEMENT CONTROLS Insufficient scrutiny of disaster or emergency-related expenditures. Ex ante processes that are defined, developed and instituted to scrutinize emergency-related expenditures submitted for approval. Limited capacity to monitor, track, and report on aggregate spending on Improved chart of accounts expenditure classification to include post disaster relief and response. disaster related expenditures at the activity and project levels. Very few performance audits of post-disaster expenditures are carried out. Implementation of an audit plan to audit expenditures and track the implementation of recommendation. PUBLIC PROCUREMENT Lack of procurement planning and limited use of data analytics to inform Strengthened procurement planning that would introduce contingent and optimize purchasing decisions proactively. contracting strategies to enhance response. Procurement law does not define what constitutes a disaster nor clarify Review of procurement bill to ensure it addresses identified authority responsible to declare when an emergency occurs. shortcomings of the existing procurement law. PUBLIC INVESTMENT AND ASSET MANAGEMENT No mechanisms for fast-tracking the appraisal, selection and approval of Documented procedures instituted for fast-tracking the appraisal, urgent disaster recovery public investments. selection, and approval of urgent disaster recovery public investments.