The United States Government (USG) requires an annual report of expenditures of PEPFAR programs at the end of each fiscal year (1 October–30 September). The purpose of this reporting is to better understand the costs the USG incurs to provide a broad range of HIV services and support and subsequently use this information to improve program planning.
In FY 2018, the structure and content of the expenditure report has changed to reflect PEPFAR’s shift from target-based budgeting to program-based budgeting (for more information on the budgeting approach, see PEPFAR Fiscal Year 2018 Country Operational Plan (COP) Guidance for Standard Process Countries, available at https://www.pepfar.gov/reports/guidance/index.htm). PEPFAR has developed a revised financial classification structure that provides a more comprehensive, flexible, and transparent tracking of PEPFAR’s investment. The revised financial classification structure builds on lessons learned from the implementation of Expenditure Analysis (EA) and other budget and financial reporting tools. The classification structure will now be common across budget formation, budget execution and expenditure reporting to allow for tracking of resource allocation against budgeted funding allocations. This allows PEPFAR to adhere to the basic principle that budgets and financial reporting should track the same structure.
This guidance provides a high-level overview of PEPFAR’s 2018 expenditure reporting requirements according to the PEPFAR financial classification structure.