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