Financial management and in particular, public expenditure management is a key focus area of the PGSP in terms of building the capacity of Provincial Governments to deliver services more effectively and efficiently to Solomon Islands’ rural populace.

Through various trainings and technical advisory support means, the PGSP integrates public expenditure and financial management best practices and standards into the procurement and funding processes and systems of Provincial Governments.

One such measure is the PGSP’s aim of institutionalising the PCDF principles into the funding and procurement processes and systems of Provincial Governments.

The Provincial Capacity Development Fund (PCDF) is a performance based grant that is currently a component of the PGSP functions. The fund requires provinces to perform to a certain level in financial management to qualify for the Annual PCDF alloca­tion. With that, the provincial financial accounts are also subjected to an Independent audit to determine the perfor­mances of provinces in a financial year.

Additionally, the PGSP provides a number of support services that aim to enhance the capacity of Provincial Governments in public expenditure and financial management. These support services include:

• Support implementation of the financial management strategy for provinces aimed at managing ex­penditure and debts management and maintaining a sound budgetary control measures.
• Continue to conduct the public expenditure management trainings aimed at improving the under­standing of MPAs and the head of divisions on various aspects of public financial management, their roles and responsibilities in PCDF implementation.
• Support and provide mentoring to provinces disqualified from receiving PCDF grants to improve performance prior to next round of independent assessment.
• Train Chief Planning Officers, Provincial Treasurers and their deputies in provincial planning and bud­geting with the aim to improve the understanding of officers in various aspects of provincial planning and budgeting including procurement procedures and processes.
• Train Provincial Treasurers and their deputies in International Public Sector Accounting Standards aimed at improving the officers’ skills in how to prepare provincial government financial statements.
• The Programme Management Unit of the PGSP is also mandated to coordinate external audits and evaluation teams who will be required to carry out mid review of the programme implementation as well as the annual assessment of provinces for PCDF qualification.
• Provide General Capacity building to MPGIS in area of budgeting, Planning and financial management. This aims at improving performance of the ministry in delivering on its key mandates.
• Oversee implementation of small infrastructure projects under PCDF at the provincial level.
• Consolidate annual reporting from provinces on PCDF achievements and implementation as part of the MTDP and budget Annual Report.