Public Financial Management (PFM) and accounting reform projects

Public Financial Management (PFM) and accounting reform projects

This Project was undertaken by PHP in consortium with Four Assist Development Consulting Limited. The Government of the Republic of Armenia has undertaken public sector accounting reforms and the World Bank supports the Ministry of Finance, Armenia in this initiative. Presently there is no system, consolidating information of different levels of public sector entities based on unified public sector accounting rules. The applied accounting practices and systems do not meet the present needs of the public sector as well as modern trends of development, recorded in this field. The objective of this Project was to follow up on the initiated reforms and support the Ministry of Finance to finalize the accounting framework development for broader roll out in public sector. As a benchmark for reforms and a long term objective, the introduction of an accounting framework, based on IPSASs has been selected.

The project comprised the following deliverables:

  • Update of Public Sector Accounting Standards to comply with the Ministry of Finance instruction;
  • Update draft accounting legal acts and manual;
  • Pilot of draft accounting legal acts and manual;
  • Update of the draft legislative framework as a result of piloting of the new system;
  • Development of a detailed implementation plan for the introduction of the new system;
  • Preparation of system requirements specifications for Automated Accounting System;
  • Introduction and piloting of Automated Accounting System.


This Project was undertaken by PHP in consortium with Four Assist Development Consulting Limited. The Project was initiated in the framework of Public Financial Management System Reform Project. The objective of this Project was capacity building of the Central Harmonization Unit of the Ministry of Finance, Armenia. Project consisted of three main phases and the following deliverables:

• Phase 1: Updating and testing of the Internal Audit Methodology.
- Update of Internal Audit Methodology comprising internal audit standards, practice advisories and manual,
- Pilot (in 6 public sector entities) of internal audit standards, practice advisories and manual,
- Determination of system requirements specification for Unified Internal Audit Information Management System (internal audit software) in conformity with Internal Audit Methodology,
- Determination of non-restrictive minimum requirements for the hardware for operation of the internal audit software.

• Phase 2: Development and testing of internal audit software and provision of trainings to trainers.
- Development of internal audit software,
- Testing /piloting (in 18 public sector entities) of internal audit software,
- Training of trainers (100 trainees) and internal audit software users (40 trainees),

• Phase 3: Development of the implementation strategy for the updated Internal Audit Methodology  and updating of the applicable legislative framework,

The main activities were undertaken in 2011-2012. However, as the software was implemented in 2013 and currently is used by more than 80 public sector entities, currently we provide software servicing and updating.

This Project was undertaken by PHP in consortium with Chemonics International Inc. The project has been implemented under Financial Sector Knowledge Sharing (FS Share) Project. At the request of USAID Armenia FS Share has been invited to conduct translation of the International Financial Reporting Standards for SME into Armenian. This translation directly has supported FS Share’s activities funded by USAID/Armenia to address SME credit needs in Armenia. The main deliverables included:

  • Translated and edited IFRS for SMEs 2009;
  • Translated and edited IFRS for SMEs Basis for Conclusions;
  • Translated and edited IFRS for SMEs Implementation Guidance 2009.

This Project was undertaken by PHP in consortium with Continental Financial Services Inc. Under this project consultants have assisted Ministry of Finance and Economy of the Republic of Armenia on conducting assistance to the Government of the Republic of Armenia in establishing of an adequate legal and institutional framework for adoption of the accrual basis IPSASs in Armenia. Under this project the following work has been performed by PHP:

  • Assessment of the existing accounting and financial reporting framework and current capacity;
  • Development of the Public Sector Accounting Standards;
  • Development of the accounting manual;
  • Piloting the introduction of the accrual basis PSASs;
  • Development of the implementation strategy;
  • Design of the legislative framework.