progress reports) completion.

Transcription

1 Annex 1 LOGICAL FRAMEWORK MATRIX Logframe Planning Matrix for Project Programme name & number Support for Political and Socio- Economic Reforms (STR2) ENPI/2007/ TAX: COMPLIANCE AND RISK MANAGEMENT Twinning Number LB09/AA/FI/06 MINISTRY OF FINANCE (MOF) Total budget: 1,100,000 ENPI budget: 1,100,000 Overall Objective Benchmarks Source of Information To improve fiscal balance by increasing Increase in revenue collection Government reports (Paris III revenue collection. by 4% two years after project progress reports) completion. Reports prepared by the Lebanese Tax Administration Reports prepared by international organizations (IMF, WB, EU, ) Project Purpose Benchmarks Source of Information Assumptions To improve tax collection efficiency through Generated revenues are MOF annual statistics report Allocation of needed better risk management, compliance and improved by 4% two years human and financial auditing. after project completion MOF annual Audit Plan resources to manage Increase in voluntary MOF Performance reports on the operations and compliance by 2% two years risk based Audit programs ensure sustainability after project completion Tax payers respond MOF departmental Quality positively to Risk based approach audit Assurance reports improvements in selection system is fully in audit mechanism use in major tax offices Maintaining tax (Large Taxpayers Office reform policy by the (LTO), Beirut, Mount Government Lebanon) two years after Political stability project completion Compliance, risk management and auditing standardized across major tax offices (Large Taxpayers Office (LTO), Beirut, Mount Page 1 of 8

2 Lebanon) two years after project completion Results Benchmarks Source of Information Assumptions A - Risk Management A.1 - Risk Analysis Techniques developed A - Risk Management A.1 - Necessary risk analysis A - Risk Management A - MOF annual report and adopted and audit are A - External assessments by A.2 - Risk based audit programs developed developed and adopted by international organizations major tax offices (Large and implemented (IMF, WB, EU) through Taxpayers Office (LTO), A.3 - Audit Techniques developed and periodical evaluation and Beirut, Mount Lebanon) adopted progress reports two years after project completion A1 - MOF annual audit plan A. 1 - Ability to assess and A1 & A2 - Risk based audit plan prioritize risk elements acquired and utilized A1 & A3 - MOF internal reports (national and regional) A. 1 & A.2 - Risk grids are quantifying revenues built and used in annual generated from audit audit plans A2 - Statistics generated from A. 2 - Audit programs are MOF database for evaluation implemented and follow-up purposes A. 3 - Audit are A3 - Risk Management improved, enhanced and Techniques manuals and implemented in major tax templates offices (Large Taxpayers A - Project progress reports Office (LTO), Beirut, Mount A - Project training material and Lebanon) two years after training evaluation reports project completion A. 3 - New procedures and reporting systems are and in place A - Approximately one hundred twenty (120) auditors trained on the state of the art compliance and auditing Skilled and trained staff can be retained The design of the Risk based Audit programs is implemented, maintained and operationally kept up to date Proper u pdate and adjustments of Risk Grids on regular basis Page 2 of 8

3 B - Compliance Management B.1 - Multi-criteria, comprehensive analytical database designed and adopted B.2 - Integrated management information system designed and adopted B.3 - Strategic and operational KPIs developed and adopted B - Compliance manageme nt B.1 - Database designed and ready to be developed B.2 - MIS designed and ready to be developed B.3 - KPIs are defined and used B - Compliance management B - Project progress reports and deliverables Activities Benchmarks Source of Information Assumptions Project progress reports The methods A - Risk Management Component Training material and training developed are evaluation reports applied in daily operations A. 1 Risk Analysis A.1.1 Risk Analysis Techniques A Develop Profiling Techniques A A Identify, assess and prioritize the risks Building Risk Grids A.1.1.1: - Major economic sectors based on relevant indicators are determined - Training on profiling is - Profile template for selected economic sectors are built A.1.1.2: - Risk elements for selected major economic sectors are determined and Selection Criteria are identified A.1.1.3: Based on the profile templates & identified risk elements: - Risk grids are developed A : Profiling Techniques Manual and Profile Template for selected economic sectors A.1.1.2: Selection Criteria for major economic sectors A.1.1.3: New Risk Grid and Modified Risk Grids and Combined Risk grid Secondary databases are made available; e.g. Land Registry, Customs, MOF will automate the tax payers profiles and risk grids Page 3 of 8

4 A Enhance the research and intelligence function A.1.2 Audit Programming Techniques A Develop audit programs A Monitor, review and evaluate audit programs A.2 Audit A.2.1 Audit Techniques A Introduce Desk Audit A Introduce Refund Audit - Current risk grids are updated & modified - Combined risk grid is developed A.1.1.4: Training is for: - Gathering & sorting information - Extracting info from Profiles - Introducing and Implementing economic tax analysis - Using patterns and trends to shape audit strategy A.1.2.1:General and Specific audit programs are using Selection Criteria & risk grids A.1.2.2: - Reporting templates are provided - Existing reporting schedules are revie wed - Finalized reporting schedules are design ed A.2.1.1: - Training material - Training on Desk audit is A.2.1.2: - Training material - Training on Refund audit is A.1.1.4: Research Analysis Procedures Manual A.1.2.1: Template of Audit Programs A.1.2.2: Reporting Templates and Revised reporting schedules A.2.1.1: Procedures of Desk Audit & A : Procedures of Refund Audit & Page 4 of 8

5 A A A A A Introduce Criminal Audit Introduce different audit and sampling methods Introduce Business Valuations Audit Introduce Quality assurance Introduce Audit Communications & Conflict Resolutions Techniques A.2.2 On-site Audit Training A Provide training on specialized industries A.2.1.3: - Training material - Training on investigative skills and building a criminal audit case is A.2.1.4: - Training material - Training on indirect methods and sampling is A.2.1.5: - Training material - Training on identifying business valuations cases and to determine Fair Market Value used in audit is A.2.1.6: - Training material - Training on Quality assurance is A.2.1.7: - Training material - Training on communication and conflict resolutions with taxpayers is A : Procedures of Criminal Audit & A.1.2.4: Procedures of Indirect Audit methods and Sampling A.1.2.5: Procedures of Business Valuations audit methods and Sampling A.1.2.6: Procedures of Quality Assurance methods A.1.2.7: Guideline of Audit Communications & Conflict Resolutions Techniques A.2.2.1: - Specialized industries A.2.2.1: Audit guidelines for are determined specialized industries Page 5 of 8

6 - Training material and content are - Training on audit for specialized industries is A Provide training for specialized topics in international taxation A.2.2.2: - international taxation topics are identified - Training material and content are A.2.2.2: Audit guidelines for International Taxation A A.3 Study Tours A.3.1 High-level group Provide training for electronic records auditing A.2.2.3: - Training on topics in international taxation is Training on Computer Assisted Audited Techniques is A.3.1: - Study Tour program is A.2.2.3: Audit guidelines for Electronic Audit Technique A.3.1: Study tour report CAAT software made available by MS Administration for demonstration purposes during the training A.3.2 Risk Analysis groups - Study Tour covering the global picture of risk management with the functioning of the departments is A.3.2: - Study Tour program is A.3.2: Study tour report - Study Tour of Compliance department employees covering all the functions related to risk analysis is Page 6 of 8

7 A.3.3 Audit groups B - Compliance Management Component B.1 Data Base Building and Linkage B.1.1 Establish links between different systems A.3.3: - Study Tour program is - Study Tour of Audit department employees covering the application of the learned modules is B.1.1: - List of pertinent information sources is identified - Multi-criteria, comprehensive analytical database is designed A.3.3: Study tour report B.1.1: List of pertinent information sources and Guidelines B.2 MIS B.2.1 B.3 KPIs B.3.1 Design an integrated Management Information Reporting System Develop key indicators B.2.1: - Business rules are identified - Templates for MIS reports are prepared - Integrated management information system is designed B.3.1: - Strategic and operational KPIs are developed - Training on measurement and performance management is B.2.1: Guidelines for MIS reporting system and Templates for MIS reports B.3.1: Guidelines for Performance Management and followup and List of KPIs and measurement MOF will develop the designed Compliance Management Information System Page 7 of 8

8 B.4 Study Tours B.4.1 Data mining and linkages B.4.2 Performance management and follow-up B.4.1: - Study Tour program is - Study Tour of Employees covering the actual functioning of learned components is B.4.2: - Study Tour program is - Study Tour of Employees covering the handling of actual performance management and follow up is B.4.1: Study tour report B.4.2: Study tour report Page 8 of 8