Public Financial Management (PFM) and accounting reform projects

Full scale piloting of the public sector accounting standards and manual and development and implementation of the automated accounting system, consultant services under Implementation of International Public Accounting Standards Strategy 2

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:

Updating and broad scale testing of internal audit methodology and development and implementation of the internal audit software


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.

Translation of the International Financial Reporting Standards (IFRS) for SME standard into Armenian

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:

Assist Government of the Republic of Armenia to establish of an adequate legal and institutional frameworks for adoption of the accrual basis International Public Sector Accounting Standards (IPSAS) in Armenia

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: