GRENADA Effective institutions and systems of public financial management How Disaster Resilient is (PFM) play a critical role in the preparation and response to Grenada’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. Grenada 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 PUBLIC PROCUREMENT • Well-defined legal framework for • Ex ante access to several disaster risk- • Contract management functions and prompting timely and flexible fiscal financing instruments to support response responsibilities are clearly defined response to natural disasters. to disasters. and assigned. • Centralized authority for coordinating all • Legally established contingencies’ fund line • Procuring entities can use negotiated disaster response assistance. item that is capitalized through several means. procurement to expedite disaster response. • A gender directorate exists to promote inclusiveness of disaster-response activities. FINANCIAL MANAGEMENT CONTROLS PUBLIC INVESTMENT AND • Existence of policy for climate change and • Controls in place to reduce the risk of fraud ASSET MANAGEMENT disaster risk-informed public investment while facilitating post-disaster spending. • Use of standardized appraisal methodologies planning. • Adequate infrastructure to undertake internal that incorporate climate change adaptation audits of post-disaster spending. elements. KEY CHALLENGES OPPORTUNITIES LEGAL AND INSTITUTIONAL FRAMEWORK No procedures to govern auditing of disaster related expenditures. Development and dissemination of a comprehensive set of operating rules to accelerate the reallocation, execution, accounting, reporting, and audit of disaster-related expenditures. BUDGET APPROPRIATION Limited access to financial instruments to support disaster response. Evaluation of the prevalent disaster risk-financing mix to ensure value for money among the tiered options. Uneven compliance with requirement for spending units to collect sex- Greater emphasis to strengthen gender sensitivity and inclusiveness disaggregated data. in resource planning as well as emergency response. FINANCIAL MANAGEMENT CONTROLS External auditing of disaster-related expenditures is not frequent Building audit staff capacity to apply risk-based approaches or routine. to auditing. Finance ministry does not have a plan or strategy for securing IT systems Creation of IT manual to document critical IT processes and data or recovering critical data. recovery plans. PUBLIC PROCUREMENT Lack of emergency procurement manuals or operating procedures or both Creation of emergency procurement manuals to clarify how to clarify how procurement should be conducted in times of urgency. procurement should be conducted in times of urgency. PUBLIC INVESTMENT AND ASSET MANAGEMENT No mechanisms for fast-tracking the appraisal, selection and approval Documented procedures instituted for fast-tracking the appraisal, of urgent disaster recovery public investments. selection, and approval of urgent disaster recovery public investments. Lack of operational clarity on the establishment and management of a Development of disaster responsive asset management policy standardized register of physical assets. and registry.