Financial Crime World

FSU Mandate Expanded to Entrench Function within Government Budget and Planning System

The Fiduciary Services Unit (FSU) is set to expand its mandate, entrenching its function within the government’s budget and planning system. This move aims to ensure transparency and accountability in financial transactions, particularly in relation to climate change and disaster risk finance.

Enhancing Transparency and Accountability

  • The FSU will develop procedural guidelines to regulate the flow of financial information between the government, donors, and commercial banks.
  • These guidelines aim to enhance transparency and reduce the risk of misappropriation of funds.

Budget Formulation Guidelines for Climate Change and Disaster Risk Management

  • The unit has been tasked with developing budget formulation guidelines for ministries to include climate change and disaster risk management (CCDRM) vetting requirements.
  • These guidelines will ensure that ministries incorporate CCDRM features, recurrent costs, and medium-term estimates of maintenance costs into their budget proposals.

Climate Finance Division’s Role in Funding Opportunities

  • The Climate Finance Division (CFD) will share timely information on funding opportunities from the Green Climate Fund, Adaptation Fund, and Climate Investment Fund with other line ministries, non-governmental organizations, private sector entities, and community-based groups.
  • This move aims to ensure that stakeholders are informed of available funding opportunities and can access them effectively.

Public Finance Management Roadmap

  • The Public Finance Management (PFM) Roadmap will be developed, incorporating climate finance considerations to support the government’s desire for direct access accreditation and improved access to international climate change and disaster risk finance.
  • The roadmap will serve as a guide for PFM reforms in Kiribati.

Training Workshops for Government Ministries and Parliamentarians

  • To enhance understanding of PFM reforms, training workshops will be conducted for all government ministries and parliamentarians.
  • The training aims to educate stakeholders on the importance of PFM reforms in facilitating Kiribati’s accessibility to climate change and disaster risk finance, as well as safeguarding the nation’s limited resources.

Donor Support

  • Donor support is expected to play a crucial role in improving Kiribati’s PFM system and building local human capacity.
  • The government has invited donors to provide targeted support to strengthen the country’s PFM infrastructure.

Performance Assessment of Line Ministries

  • The FSU will use the budget preparation period to assess the performance of line ministries in utilizing and managing budget allocations, ensuring that funds are utilized effectively and efficiently.

Strengthening Coordination with Donors

  • Strengthening coordination and engagement with donors is another key area of focus.
  • The government aims to ensure that CCDRM funding is channeled through the national system (budget) and managed and disbursed using Kiribati’s financial systems.

Expected Outcomes

The expansion of the FSU mandate is expected to enhance transparency, accountability, and efficiency in financial transactions, ultimately supporting Kiribati’s efforts to address climate change and disaster risk management.