PECOFF

PECOFF is a standardized framework for governance, reporting, and oversight of public sector enterprises. It standardizes financial reporting, internal controls, risk management, and performance measurement to improve transparency and accountability.

The framework originated from a consortium of public auditors and policy researchers in the early 2010s. It was published as voluntary guidelines and later incorporated into mandatory reform programs in some jurisdictions. Revisions PECOFF 2.0 (2016) and PECOFF 3.0 (2020) added stronger internal controls, digital reporting, and clearer performance indicators.

PECOFF comprises core components: financial reporting alignment with IPSAS or IFRS as applicable; governance and compliance controls; risk management and internal audit; performance measurement and reporting; external assurance and verification. It specifies governance roles such as a Public Enterprise Oversight Board, a Chief Compliance Officer, and an Auditor-General review. The framework emphasizes risk-based planning and standardized metrics such as cost-efficiency, service outcomes, and asset utilization.

Adoption varies by country and agency. Implementations typically involve gap analyses, capacity building, process redesign, and information system upgrades. Reported benefits include greater transparency, improved stewardship of public funds, and enhanced public trust. Reported challenges include resource demands, need for skilled personnel, and alignment with existing national accounting standards.

See also: IPSAS, IFRS, public sector governance, government accounting standards.