Progress and Challenges for MfDR in the LAC Region
Table 2.13  |  Scores for Financial Management, Auditing and Procurement Indicators by Level of Development Financial management, auditing and procurement
Level of MfDR development
MfDR Index
High
Medium
Low
Relationship between budgeted and executed expenditures
2.6
3.5
2.7
2.0
Risk analysis
1.5
4.4
1.1
0.5
Budget transparency
4.2
4.9
4.4
3.3
Classification of budget expenditures
3.3
4.5
3.6
1.7
Approval of budget by the legislative branch
4.2
4.5
4.1
4.4
Accounting
3.4
4.6
3.3
2.8
Integrated financial management system
2.0
3.0
2.3
0.7
Legal and institutional framework for procurement
2.7
3.7
3.0
1.6
Transparent electronic procurement system
1.2
3.7
0.9
0.3
Legal and institutional framework for internal auditing
3.5
4.8
3.8
2.1
Legal and institutional framework for external auditing
2.6
4.0
2.6
1.6
MfDR Index for financial management, auditing and procurement
2.5
4.0
2.5
1.5
The majority of countries in the region have rules and institutions that govern public financial management, and electronic systems to integrate the information provided by the subsystems. Although nearly all of the laws adhere to internationally accepted principles on financial management and a large group of countries have guiding institutions at an advanced stage of development, integration with information technology still needs to be strengthened in the majority of countries. In effect, only Brazil, Chile and Mexico have managed to integrate their financial management systems with other complementary systems, such as public investment and procurement. Another pending matter in many countries is the coordination of subnational government with financial management since in a high proportion of cases it is the subnational governments that manage the fiscal resources. Most countries have accounting systems that conform to international standards and that are used to prepare annually consolidated reports on
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