Scope of the Project
Development of Financial Management and Control (FMC) Manual for the Public Sector
As part of strengthening internal control and governance frameworks in the public sector, the following key activities were undertaken:
Assessment of Existing FMC Frameworks: A comprehensive review of the existing financial and management control manuals across selected public institutions to identify gaps, overlaps, and areas for enhancement.
Benchmarking Against International Practice: Analysis of international standards and best practices in FMC implementation (e.g., SIGMA, INTOSAI GOVs) to ensure alignment with modern public financial management principles.
Integration of Budgeting and Program Budgeting: Tailoring the FMC manual to incorporate budgeting principles, with a particular focus on linking strategic objectives to program budgeting processes.
Action Plan for Piloting and Implementation: Development of a detailed action plan to pilot the FMC framework within selected entities, outlining the required steps, timeline, responsible parties, and support mechanisms for effective rollout.
Short info on the Project
In 2022, GPMA implemented a project for the Economic Development and Research Center (EDRC) focused on the development and practical piloting of a Financial Management and Control (FMC) manual tailored for the Armenian public sector.
As part of this engagement, a comprehensive implementation and piloting approach was designed. A key innovation introduced was the integration of internal control self-assessment questionnaires, aligned with COSO framework components. Based on questionnaire responses, scoring mechanisms were established to assess the maturity level of each internal control component (e.g., control environment, risk assessment, control activities, information and communication, and monitoring).
These scores enabled the identification of gaps and weaknesses, allowing for the formulation of targeted improvement measures and action plans. The result was a practical and measurable framework for assessing internal control effectiveness and driving continuous improvement within public institutions.
