Fiscal Year 2019

Technical Assistance

Banking Supervision (June 24-28, September 10-14)

METAC continued its assistance on credit registry to the Credit Information and Scoring Agency (CIASA) of the Central Bank of Sudan. The mission followed up on the progress made by the authorities in implementing METAC’s June 2017 recommendations related to credit registry. It also advised on some key technical components to improve the reporting by micro-finance institutions about their borrowers, reviewed a proposal for acquiring a national identification number’s software, and proposed changes to the Credit Information and Scoring Act that would allow for the expansion of data contributors to CIASA. This assistance is expected to strengthen the capacity of the Sudanese authorities in monitoring credit risk concentration and detecting non-performing loans at an early stage.

A work-from home mission aimed at further assisting the Central Bank of Sudan in upgrading the current inspection manual and aligning it to a risk-based approach, including by developing a set of examination procedures on Credit Risk Management, Liquidity Risk Management, Market Risk Management, Operational Risk Management, and Capital Adequacy.

Public Financial Management (July 29 – August 2, 2018; February 3-11 and 3-12, 2019)

In the context of METAC’s work program aiming at improving medium-term macro-fiscal forecasting and preparing the integration of the MTFF within the budget preparation process, an expert (i) took stock of the progress made since the February 2018 visit; (ii) identified the remaining steps to advance the current macroeconomic framework into a complete MTFF, and (iii) supported the integration of the MTFF within the 2019 budget—actual integration is still at an initial stage.

A mission supported the MoF and Economic Planning to increase the time-horizon of cash programming from one to three months. This will improve the ability of spending units to implement their budget, and the overall effectiveness of cash management by the Treasury. The expert worked with key stakeholders to prepare the inclusion in the Treasury Single Account (TSA) of extra-budgetary funds and selected public corporations. Discussions focused on the selection of entities, the sequencing of their inclusion into the TSA system, required changes to the TSA design, and impacts on cash forecasting practices. A template for daily cash forecasting for 30 days ahead was developed for the cash management unit.

A third mission assisted the authorities in preparing their first draft FRS, in line with international standards and practices. The document discloses some key fiscal risks and identifies the areas requiring further analysis. A fiscal risk reporting roadmap was defined, proposing a step-by-step approach to be implemented until the end of 2019, starting with the most significant fiscal risks. Finally, an action plan to develop a reporting process on fiscal risks was prepared.

 

Revenue Administration (July 29-August 9, November 4-15)

METAC provided technical assistance for the development of a Risk Management Structure in the Sudanese Taxation Chamber (STC) based on international good practices. During the mission, a special Task Force has been established to develop and implement the Risk Management function in the STC. The mission also conducted a workshop on development of a risk management structure, governance arrangements and key functions for a sound risk management, including identification, assessment and treatment of risks. It developed a detailed time-bound action plan for the implementation of the recommended risk management structure and function, which was discussed and agreed with the authorities.   

METAC continued supporting Sudan Customs Administration (SCA) in rolling out risk management function. A METAC expert visit during November 4-15 found that the first stage of this rollout, involving mainly the sea ports, was completed; the second stage, dealing with dry ports, is planned to commence in December 2018. This will proceed in parallel with two pilot projects to extend risk management to other SCA functions, such as excise and tariff administration. The visit provided further advice on assessing and ranking compliance risks, developing a compliance improvement program to mitigate identified risks, and rolling out risk management across other taxes. In line with earlier METAC recommendations, a High-Level Committee on Risk Management has been formed and the intelligence function has been expanded and improved over the last few months.

Statistics (February 3-12 and February 17-21, 2019)

METAC provided technical assistance on price statistics to the CBS. It worked with staff to assess the methodological and data source challenges they currently face in estimating the CPI, and to develop plans for improvements.

METAC also conducted training to CBS staff to enhance their knowledge in the concepts and preparation of national accounts. The workshop was attended by 13 participants, 9 of whom were new employees in the National Accounts section.

Technical Assistance and Training: