PKF and INNOVA Management Consulting with support of DFID
The Dayton Peace Agreement resulted in a complex political structure with 14 separate Governments responsible for a country of less than 4 million people. This complexity had led to a dysfunctional public financial management (PFM) system in BiH, particularly in the key area of expenditure allocation and budget formulation.
Recognising the role which good budget practice plays in ensuring efficient and effective service delivery to citizens, the UK's DFID has supported the development of transparent and accountable budget systems and institutions for BiH.
Following a competitive tender process, PKF was awarded a contract to deliver this technical assistance under a 3½ year programme which commenced in September 2004.
In March 2009 a two-year contract was awarded to PKF in consortium with domestic management company INNOVA, as the continuation of the SPEM project.
Over this 5½ year period, PKF developed a harmonised and co-ordinated approach to budget formulation in BiH (the so-called "10 Steps Approach") and implemented the system across all 14 levels of Government.
At the conclusion of the project, Ms Ruvejda Aliefendic, Head of DFID Sarajevo said "The SPEM project, implemented by PKF, has been an important flagship project for DFID globally. PKF's approach and support has been instrumental in strengthening the transparency and accountability of the BiH Governments' budgets, all the more impressive when one considers the context of the very complex governance and administrative structure which exists."