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This Unit, in collaboration with the Budget Division, executes the Public Expenditure Tracking functions as stipulated in the PFM Act (2009). In this regard, it is responsible for reviews and analysis of expenditure trends to provide advice on formulation of appropriate expenditure policies promulgated by the Financial Regulation Unit. It routinely reviews expenditure trends in different sectors of the GoL, as well as, performs ad-hoc reviews when necessary. This Unit is also responsible for the monitoring of subsidy-receiving entities, ensuring the physical audits of all government procurements conform to the threshold set in the financial rules or regulations.

Key Activities:• Review expenditure trends in different sectors of government and prepare a quarterly expenditure trend report.• Carry out ad-hoc expenditure reviews (ex. Donor financing)• Review the accountability of funds disbursed by central government to the counties (including social and county development funds) and prepares a semi-annual report on such disbursements.• Regularly review government’s subsidies to subsidy-receiving institutions and make recommendations for policy changes if the need exists;• Carry out annual Public Expenditure Tracking Survey (PETS) in concerned sector of government as a means of understanding resource flow and service delivery.

Project Executted So Far:• Completed Public Expenditure Tracking survey (PETS) in the Security & Agriculture sectors, across six counties in the country: Grand Cape Mount, Nimba County, Montserrado, Bong County, Lofa and Grand Gedeh respectively. This report is published and available on the MFDP website• Completed Public Expenditure Tracking Survey (PETS) in the Commerce and Industry Sector across six counties in the country: Grand Cape Mount, Nimba, Bong, Margibi, Sinoe and Grand Bassa respectively, with Montserrado being a base for reference. The report is pending review by validation from stakeholders, after which, its finding will be submitted to the Finance Minister and subsequently publish; • Completed the draft Public Expenditure Review (PER) from 2015 – 2018 and Inputs are being made by the consultant after which it could be distributed internally or published.

To develop and evaluate tax policies and legislation in the area of indirect taxes in collaboration with the Liberia Revenue Authority. This includes customs duties, excise taxes, General Sales Tax and preparation for the introduction a VAT, as required by ECOWAS. To ensure the indirect tax harmonization within ECOWAS member states.

The unit is headed by a director (Hassan Karneh) and ably assisted by an assistant director, and core of senior analyst and analysts.

The Non Taxation Revenue Policy Unit is responsible for the development and evaluation of tax policies and legislation, in consultation with fees collecting Ministries and Agencies and the Liberia Revenue Authority, in the area of non-tax revenues relating to government ministries & agencies fees, including those specified under Chapter 21 of the Revenue Code of Liberia.

The unit is headed by a director (Oliver K. Clarke) and ably assisted by an assistant director, and core of senior analyst and analysts.

To develop and evaluate tax policies and legislation in the area of indirect taxes in collaboration with the Liberia Revenue Authority. This includes customs duties, excise taxes, General Sales Tax and preparation for the introduction a VAT, as required by ECOWAS. To ensure the indirect tax harmonization within ECOWAS member states.

The unit is headed by a director (Hassan Karneh) and ably assisted by an assistant director, and core of senior analyst and analysts.

The DTU is responsible for development, monitoring and evaluation of tax policies and legislation in the area of direct taxes, including personal and business income taxation and property tax, in consultation with Liberia Revenue Authority. The Direct Tax Unit also develops natural resource tax policies, including negotiations of mining, petroleum and other concession agreements. The DTU supports the Revenue Forecasting and Modelling Unit with the forecasting and performance monitoring of direct tax receipts as well as supports the Assistant Minister on tax harmonization emanating from International Tax Institutions on issues relating to direct taxation.The unit is headed by a director (Prince Nelson) and ably assisted by two assistant directors, and core of senior analyst and analysts.

The function of the Modeling and Forecasting Unit within the revenue and tax policy division includes the following:To develop and maintain data bases and models for revenue forecasting, analysis and evaluation of tax policiesResponsible for collating receipts of direct, indirect and non-tax revenues in consultations with other Divisions and Sections and passing them on to the Budget Division.

To bring together in one place the quantitative work and analysis of the division and would work closely with the other three Sections and the Macro and Fiscal Sector Policy Section of the Department of Economic Management. The unit is headed by a director (Alphonso B. Teah) and ably assisted by an assistant director, and core of senior analyst and analysts.

The Cash Management Unit {CMU} is headed by a Director who is assisted by an Assistant Directors. The major function of the unit is to conduct Cash Management for the prudent management of available cash. To achieve the above,

The Revenue and Tax Policy Division (RTPD) was created by an Act of National legislature in 2013 as a result of the Reform that detached the then Revenue Department from the Ministry of Finance, thus creating the Liberia Revenue Authority (LRA) and the Ministry of Finance and Development Planning (MFDP) and dissolved the Ministry of Planning and Economic Affairs. The RTPD, charged with the responsibilities of formulating tax policy and forecasting revenue, is headed by an assistant minister and comprises of four units (The Revenue Forecast and Modeling, Non Tax, Direct Tax and Indirect Tax Units), each headed by a director. The overall goals of the RTPD are twofold:

1. To formulate and design effective revenue and tax policies as well as keeping track and measuring the impacts on domestic revenue mobilization2. To forecast revenue that feeds into the national budget, monitor and analyze the outturn and report same. The revenue and tax policy division is charged with the statutory responsibilities to:

1. Provide daily revenue estimates to support the effective execution of the national budget2. Develop and coordinate tax policies and procedures for personal and business income tax3. Develop, coordinate, and evaluate tax policies with concentration in customs, GST / VAT, and Excise Tax4. Coordinate the harmonization of indirect taxes within ECOWAS Region5. Develop administrative policies on fees and non-tax related revenue

Non-Tax Unit The Non Taxation Revenue Policy Unit is responsible for the development and evaluation of tax policies and legislation, in consultation with fees collecting Ministries and Agencies and the Liberia Revenue Authority, in the area of non-tax revenues relating to government ministries & agencies fees, including those specified under Chapter 21 of the Revenue Code of Liberia.

The unit is headed by a director (Oliver K. Clarke) and ably assisted by an assistant director, and core of senior analyst and analysts.

The Fiscal Decentralization Unit (FDU) which is part of the structure of the Ministry of Finance & Development Planning, since 2014, is supervised by the Deputy Minister of Fiscal Affairs. The UNIT was part of the Ministry of Finance & Development Planning new structures during the course of the establishment of the Ministry in 2013 by the Legislative enactment. The UNIT which is headed by a Director, is responsible to support the Intergovernmental Fiscal Framework aimed at providing a comprehensive framework for the long-term development of intergovernmental fiscal arrangements, including the assignment of expenditure responsibilities, revenue responsibilities, intergovernmental transfers, coordinating the county development funds and the social development funds, the county treasury framework and working with institutions responsible for decentralization and those institutional arrangements that entails participatory governance.

i. Structure, Staffing and LocationThe structure of the UNIT is unique and well organized to meet the demand of public financial governance. The Unit staffs include a Director, an Assistant Director two senior Financial Analyst, two Financial Analysts (Vacant) one Senior Treasury Officer (Vacant), one Administrative Assistant (Vacant) and one Staff Assistant. Currently, the Unit is under staff with only three staffs: Director, Asst. Director and Staff Assistant. The Vacancies have not been filled by management.

II. Major Achievements and ImpactsThe Fiscal Decentralization Unit has made the following major achievements and impacts during the period under review:

i. County Treasury Framework: Spending EntitiesThe Fiscal Decentralization Unit (FDU) has made a significant impact by working with senior management to ensure the next phase of the county treasury framework is put into perspective. The Unit is working with other stakeholders to ensure this impact is felt in the counties. The second phase of the county treasury framework entails spending entities that will do public financial business in the counties:

This Department is responsible for all fiscal matters relating to Expenditure and Revenue as well as Tax Policy. With the establishment of a semi-autonomous Revenue Authority, the Department of Fiscal Affairs deals with revenue and tax policy issues, including framing of tax laws and regulations, role of taxation and tax exemptions in the broader economic and development policy framework, and issues relating to non-tax revenue.

In addition to revenue and tax issues, Fiscal Affairs further deals with public expenditure issues ranging from framing of financial rules and regulations to matters pertaining to government accounting. The Department has oversight of the Controller and Accountant General Office, the Integrated Financial Management Information System (IFMIS), policies on government subsidies, pay, allowances, pension policies and monitoring of public expenditure.

The Department of Fiscal Affairs comprises the four divisions/units:

1. Assistant Minister for Expenditure (AME)2. Revenue and Tax Policy3. Comptroller & Accountant General 4. Fiscal Decentralization Unit

Expenditure Division The Expenditure Division, headed by an Assistant Minister, manages the financial resources of Liberia. The Division is responsible to develop and administer the financial rules and regulations of the Republic; oversee and execute all matters relating to government accounting, including pay, pensions and other allowances, as well as develop fiscal policy. In addition, the Expenditure Division also implements expenditure proposals of Ministries and Agencies of Government as appropriated in the Budget, and performs other functions as may be assigned by the Minister as well as imposed by law.

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