MEPI AND TREASURY FUNDED TECHNICAL ASSISTANCE

UNCLAS AMMAN 001027 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EAID EFIN ECON JO SUBJECT: MEPI AND TREASURY FUNDED TECHNICAL ASSISTANCE PROGRAM DELIVERS SUCCESSFUL CASH MANAGEMENT SESSION ¶1. (U) SUMMARY: During the week of January 22, Department of Treasury's Office of Technical Assistance (OTA) conducted a highly successful three-day public cash management workshop in Amman. The program successfully introduced finance managers from all of Jordan's 24 ministries, and the Budget Department, Customs Department, and Central Bank of Jordan (CBJ) to the principles of proper cash management, analysis, and reporting; all critical requirements in working with the Ministry of Finance for funding requests. ¶2. (U) The program was a success with attendees, who indicated that they better understood budget formulation and execution after the course was over. Most expected to implement a cash forecasting application (developed by OTA) and use it to request funds and report how the funds were used to the Ministry of Finance (MoF). END SUMMARY. ¶3. (U) During the week of January 22, the Middle East Partnership Initiative (MEPI) program and Department of Treasury's Office of Technical Assistance (OTA) conducted a highly successful three-day public cash management workshop in Amman. The event was planned by OTA Jordan Resident Advisor on Debt Management (a MEPI-funded position),Greg Ambrosio. The workshop was conducted by a cross-disciplinary Treasury team consisting of the Jordan Resident Advisor, Budget Advisor Sheila Beckett, and Project Manager Stephanie Loiacano. The workshop was attended each day by 100 individuals representing the 24 government ministries and some 30 other line offices in different agencies, the military, and the CBJ. USAID's Achievement of Market-Friendly Initiatives and Results (AMIR) program provided translation services and logistical support. ¶4. (U) The objective of introducing the principles of proper cash management to attendees was two-fold: first, to help execute the state budget more efficiently, and second, to enable the MoF to plan its borrowings based on reliable forecasts of revenues and expenditures, thereby reducing borrowings and interest costs. Specifically, the workshop was intended to support the MoF's newly-formed Cash Management Unit by drawing the attention of other government ministries to the unit's need for efficient transfer of reliable data and to demonstrate how better management and reporting of cash management could benefit a ministry. Helping address this need, the workshop provided training on a Microsoft Access-based Cash Management Model developed by OTA. The OTA team and MoF counterparts believe that all objectives were accomplished. ¶5. (U) OTA IT specialist Branko Bokan will travel to Amman in late February to make any needed adjustments to the cash management software application and link it to systems housed in other ministries. ¶6. (U) The OTA team also made a series of observations about the entire process of budget formulation and execution, as well as interagency coordination. These observations will form the basis of a report to the Jordanians, including recommendations for executing reforms. MEPI and the OTA, through its resident advisor and cash management staff, will assist in implementing these reforms. COMMENT: Ultimately, the success of this initiative will be measured in improved cash flow forecasting and better debt issuance planning within the Jordanian government. END COMMENT. ¶7. (U) OTA Jordan Resident Advisor on Debt Management contributed to this message. HALE