CHAPTER 3 procurement, capacity building, internal auditing and timely release of financial reports are areas of least progress in public finance management. Payroll management remains a troublesome area in expenditure control. 88. The use of a cash accounting regime for budgeting and financial reporting remains a problem in monitoring the implementation of fiscal policy measures and budgetary outcomes. The current system of non-carry forward of unused appropriations encourages ministries, departments and agencies to pre-commit to spending towards the end of the financial year. 89. A notable feature of the structure of public spending is the large component of earmarked or statutory funds and allocations to subvented organisations, which therefore would have little incentive to economise on resource use. 90. Parliament has a fiscal and monetary oversight role in ensuring sound public finance management, as guaranteed in the Constitution, and operating through the Public Accounts and Finance Committees. Yet, parliamentary committees charged with such oversight functions have not always followed the rules, thus falling short of public expectations. The audit process has seen some reforms in recent years (for instance, backlogs of arrears up to 1993 were cleared in 2003 and 2004). It remains weak, however, being hampered by inadequate accounting systems, the absence of clearly defined audit standards, and the weak capacity and insufficient autonomy of the audit authorities. Parliament has also been constrained to act in a timely manner and to authorise remedial actions. 91. The CSAR argues that fiscal decentralisation remains weak for a number of reasons, such as centralisation of the management of public finance in accordance with legislation, and the general lack of trained manpower at the local level. ii. Findings of the CRM 92. Stakeholders discussed certain issues concerning public finance management for the economy as a whole, and fiscal relations among central government and subnational governments (metropolitan, municipal and district assemblies): ? ? 72 Measures taken to implement a predictable medium-term fiscal framework; The effectiveness of existing practices in revenue and expenditure targeting,