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Improving Public Sector Financial Accounts

Latin America and the Caribbean USAID 1991 1991

DevTech assisted the government of Honduras in a project designed to link accounting systems and procedures to the requirements of macroeconomic classification models and reporting.

The first project component involved system improvements designed to enable the Honduran government to produce a single version of the public sector’s consolidated financial accounts. Working with the Vice-Minister of Finance and Public Credit, DevTech identified problems at the consolidation stage, recommended a common methodology, and reviewed the quality and timeliness of financial data flowing through the budgetary and accounting process. For the consolidation portion of the project, the International Monetary Fund methodology was adapted and merged with the existing coding structure for both revenue and expense. The result was a detailed chart of accounts that accommodated both the budgetary and accounting processes for the central government, decentralized agencies, and public enterprises.

In the second element of the project, DevTech performed an in-depth analysis of the accounting systems used by the Treasury, the Accountant General, several public enterprises, the Secretariats of Budget, Public Debt, and Decentralized Agencies, and the Data Processing Center.