I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
A
Notes:
1.1 Aggregate expenditure outturn
A
Notes:
Actual expenditure fell short of budget by less than 5% in 2 of the 3 years 2018-20.
2. Expenditure composition outturn
B+
Notes:
2.1 Expenditure composition outturn by function
B
Notes:
Variance of composition was less than 10% in 2 of the 3 years 2018-20.
2.2 Expenditure composition outturn by economic type
B
Notes:
Variance of composition was less than 10% in all 3 years 2018-20.
2.3 Expenditure from contingency reserves
A
Notes:
Amounts charged to contingency averaged 0.6% of original budgets 2018-20.
Notes:
3.1 Aggregate revenue outturn
D
Notes:
Out-turn was outside range 92%-116% of budget in 2 of 3 years 2018-20.
3.2 Revenue composition outturn
B
Notes:
Variance of revenue composition exceeded 10% in only one of 3 years 2018-20.
II. Transparency of public finances
Scores by Dimension
Overall Indicator Score
4. Budget classification
A
Notes:
4.1 Budget classification
A
Notes:
Budget formulation, execution and reporting are based on economic, administrative, functional and sub functional GFS/COFOG classifications.
Notes:
5.1 Budget documentation
B
Notes:
All 4 basic elements presented plus 5 others.
6. Central government operations outside financial reports
C+
Notes:
6.1 Expenditure outside financial reports
C
Notes:
Public universities’ expenditure (5.4% of 2020 total main budget expenditure) is not included.
6.2 Revenue outside financial reports
C
Notes:
Public universities’ revenue (7.0% of 2020 main budget revenue) is not included.
6.3 Financial reports of extrabudgetary units
B
Notes:
Only universities’ expenditure which amounted to less than 25% of total EBU expenditure not reported within 6 months of year-end.
7. Transfers to subnational governments
C+
Notes:
7.1 System for allocating transfers
D
Notes:
Transfers are allocated by an objective formula, whose results are predictable, but the details are not transparent.
7.2 Timeliness of information on transfers
A
Notes:
Municipalities are informed before end-October of the following year’s transfers.
8. Performance information for service delivery
C
Notes:
8.1 Performance plans for service delivery
B
Notes:
Ministry Estimates show intended outputs or actions for the budget year and 2 subsequent years, but not outcomes.
8.2 Performance achieved for service delivery
B
Notes:
Ministry Estimates show actual performance for the previous year, and the targets and expected actual performance for the current year.
8.3 Resources received by service delivery units
D
Notes:
No information is collected about the resources received by individual schools and health clinics.
8.4 Performance evaluation for service delivery
D
Notes:
The Audit Bureau has undertaken a number of Performance audits, mainly directed at the impact of specific activities on the environment and sustainable development.
9. Public access to fiscal information
A
Notes:
9.1 Public access to fiscal information
A
Notes:
All 5 basic elements are provided, and 3 others.
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
D+
Notes:
10.1 Monitoring of public corporations
C
Notes:
Government receives financial reports for most public corporations within 9 months of year-end.
10.2 Monitoring of subnational governments
C
Notes:
Unaudited reports are published by a majority of municipalities within 9 months of year-end.
10.3 Contingent liabilities and other fiscal risks
D
Notes:
Fiscal risks are analysed in the IMF’s reports on the Jordan economy, but have not been covered in the Government’s financial reports. Large PPP commitments have not been reported.
11. Public investment management
D
Notes:
11.1 Economic analysis of investment proposals
D*
Notes:
Some projects supported by external partners are subject to economic analysis, but no specific information is available.
11.2 Investment project selection
D*
Notes:
Major projects are decided by a Committee chaired by the Prime Minister, but no information is available about specific decisions.
11.3 Investment project costing
D
Notes:
No information about the total costs of major projects is given in budget documents.
11.4 Investment project monitoring
D*
Notes:
No standard procedures were in operation. No information is available about the timing and content of project monitoring reports.
12. Public asset management
D+
Notes:
12.1 Financial asset monitoring
C
Notes:
The Government maintains records of its holdings of shares in companies, but no consolidated report of their performance has been published.
12.2 Nonfinancial asset monitoring
C
Notes:
Each Ministry and GU keeps records of its nonfinancial assets, and work has begun on their valuation.
12.3 Transparency of asset disposal
D
Notes:
The Procurement by-law requires assets to be sold by public auction, but no reports of disposals have been included in financial reports.
Notes:
13.1 Recording and reporting of debt and guarantees
A
Notes:
Debt records are complete and accurate, and full statistical reports are published monthly.
13.2 Approval of debt and guarantees
A
Notes:
Debt issues are initiated by a high-level Committee chaired by the Minister of Finance, and must be approved by the Council of Ministers.
13.3 Debt management strategy
B
Notes:
A medium-term strategy is in place.
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
14. Macroeconomic and fiscal forecasting
B
Notes:
14.1 Macroeconomic forecasts
B
Notes:
Forecasts of key macro-economic indicators for 3 years ahead are submitted to Parliament based on maintaining the long-standing peg for the Jordan Dinar at 0.71 JD = US$ 1. But they are not subject to independent review.
Notes:
Forecasts of the main fiscal indicators for 3 years ahead are published with the budget, together with an explanation of the main differences from the previous year’s forecasts.
14.3 Macrofiscal sensitivity analysis
D
Notes:
No forecasts on alternative assumptions have yet been produced.
Notes:
15.1 Fiscal impact of policy proposals
C
Notes:
Budgets show the impact of revenue and expenditure proposals for the year ahead, but leave open how revenue targets for the second and third year are to be achieved.
15.2 Fiscal strategy adoption
B
Notes:
Government commitments to the IMF constitute a fiscal strategy, which has been fully described in Budget statements to Parliament.
15.3 Reporting on fiscal outcomes
B
Notes:
Letters of Intent to IMF constitute reports on progress against the fiscal strategy. The main points have been included in Budget statements to Parliament.
16. Medium-term perspective in expenditure budgeting
B
Notes:
16.1 Medium-term expenditure estimates
A
Notes:
Annual budgets provide estimates of expenditure for 3 years ahead on administrative economic and functional classifications.
16.2 Medium-term expenditure ceilings
A
Notes:
Budget circulars include Government-approved ceilings for each of the next 3 years.
16.3 Alignment of strategic plans and medium-term budgets
C
Notes:
Each Ministry has strategic objectives and associated annual performance targets, but the expenditure allocations may not be consistent with the performance targets.
16.4 Consistency of budgets with previous year’s estimates
D
Notes:
No explanations are given for differences between the previous year’s figures for the second year and those given when that year becomes the budget year.
17. Budget preparation process
B+
Notes:
Notes:
There are about 5 months for preparation of MDAs submissions and discussions with GBD.
17.2 Guidance on budget preparation
A
Notes:
Ceilings are approved by Government collectively before issue to MDAs.
17.3 Budget submission to the legislature
C
Notes:
Last 3 budgets submitted to Parliament before end of November each year.
18. Legislative scrutiny of budgets
C+
Notes:
18.1 Scope of budget scrutiny
A
Notes:
Parliament’s review covers fiscal policies and medium-term priorities as well as details of revenue and expenditure.
18.2 Legislative procedures for budget scrutiny
B
Notes:
Procedures are established, and detailed reductions made as a result of Parliamentary scrutiny, but there is no public consultation.
18.3 Timing of budget approval
C
Notes:
2 of last 3 budgets were approved before the end of January of the year to which it relates.
18.4 Rules for budget adjustment by the executive
A
Notes:
Clear rules limit the Executive’s discretion in adjusting the enacted budget, which are fully observed.
V. Predictability and control in budget execution
Scores by Dimension
Overall Indicator Score
19. Revenue administration
B+
Notes:
19.1 Rights and obligations for revenue measures
B
Notes:
The system remains extremely complex, and open to avoidance.
19.2 Revenue risk management
A
Notes:
ISTD has been reorganized so as to improve risk management, with good results.
19.3 Revenue audit and investigation
A
Notes:
Operations have been reorganized on the basis of documented compliance improvement programmes.
19.4 Revenue arrears monitoring
C
Notes:
Arrears were less than 20% of 2020 collections, but amounts more than a year old were over 60% of the total of arrears.
20. Accounting for revenue
A
Notes:
20.1 Information on revenue collections
A
Notes:
MoF makes a monthly report of all revenue accruing to central government, broken down by revenue type.
20.2 Transfer of revenue collections
A
Notes:
All budget revenue is paid daily into the Treasury Single Account.
20.3 Revenue accounts reconciliation
A
Notes:
There is full monthly reconciliation of all revenues collected by the Tax Departments, covering assessments, collections and transfers to the Treasury.
21. Predictability of in-year resource allocation
B+
Notes:
21.1 Consolidation of cash balances
A
Notes:
Almost all cash balances are consolidated daily in the Treasury Single Account
21.2 Cash forecasting and monitoring
A
Notes:
MoF prepares a cash forecast for the year, and updates it monthly – score A.
21.3 Information on commitment ceilings
C
Notes:
Cash is released to budget units in monthly instalments.
21.4 Significance of in-year budget adjustments
B
Notes:
There were no Supplementary Budgets in 2020. Reallocations within Chapters in accordance with the restrictions in annual budget laws amounted to 682.5m JD or 7.1% of the original budget.
Notes:
22.1 Stock of expenditure arrears
B
Notes:
Arrears amounted to less than 6% of total expenditures in 2 of the 3 years 2018-20.
22.2 Expenditure arrears monitoring
B
Notes:
MOF keeps monthly record of arrears, covering amount and composition, but there is no analysis by age.
Notes:
23.1 Integration of payroll and personnel records
A
Notes:
There are close links between the approved budget, personnel records and payroll records.
23.2 Management of payroll changes
A
Notes:
Payroll changes are authorised and prompt.
23.3 Internal control of payroll
A
Notes:
Close and effective control of payroll applies.
Notes:
Regular payroll audits by AB.
Notes:
24.1 Procurement monitoring
A
Notes:
Full records kept.
24.2 Procurement methods
D*
Notes:
Competition is default method but no statistics are available to demonstrate the extent to which competition is applied.
24.3 Public access to procurement information
D*
Notes:
3 of 6 items available to public, but completeness is not evidenced concerning bidding opportunities and contract awards (see 24.2 above).
24.4 Procurement complaints management
A
Notes:
All criteria satisfied.
25. Internal controls on nonsalary expenditure
A
Notes:
25.1 Segregation of duties
A
Notes:
Financial Regulations and organisational structures provide for segregation of duties, reinforced by controls built into GFMIS. But internal control procedures remain rather onerous.
25.2 Effectiveness of expenditure commitment controls
A
Notes:
Purchase Order Module of GFMIS requires finance to be allocated before an order can be placed.
25.3 Compliance with payment rules and procedures
A
Notes:
Layers of internal control by units in each Ministry, by MoF Internal Control Unit reinforced by the design of GFMIS, ensure that all payments are in accordance with rules and procedures.
Notes:
26.1 Coverage of internal audit
A
Notes:
IA is functional to some degree in all BCG entities .
26.2 Nature of audits and standards applied
C
Notes:
Audit is mainly centred on compliance.
26.3 Implementation of internal audits and reporting
A
Notes:
Audit plans were produced in 2020 and all work completed albeit with some disruption from the COVID pandemic.
26.4 Response to internal audits
B
Notes:
Most entities respond within 6 months.
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
27. Financial data integrity
C+
Notes:
27.1 Bank account reconciliation
B
Notes:
Most GU bank accounts are part of the TSA arrangements so daily bank reconciliation takes place. For other GUs and the SSC, reconciliation is at least monthly within one month of the end of the period.
Notes:
Most balances reconciled annually but some remain uncleared after many years.
Notes:
Significant un-cleared balances persist.
27.4 Financial data integrity processes
A
Notes:
Effective processes with clear audit trail and responsible unit.
28. In-year budget reports
B+
Notes:
28.1 Coverage and comparability of reports
A
Notes:
Monthly reports by administrative and economic classification are available internally.
28.2 Timing of in-year budget reports
B
Notes:
Monthly reports produced within four weeks of end of month.
28.3 Accuracy of in-year budget reports
B
Notes:
Reports are accurate but do not include commitments.
29. Annual financial reports
B+
Notes:
29.1 Completeness of annual financial reports
B
Notes:
Revenue, expenditure, financial assets and liabilities, guarantees, long-term liabilities, cash balances and cash flow statement supplied, but no information about tangible assets
29.2 Submission of reports for external audit
A
Notes:
The latest annual financial statements for the year ended 31 December 2020 were submitted to the AB on 23 March 2021.
29.3 Accounting standards
A
Notes:
Consistent standards have been applied, in line with cash based IPSAS for 2018-20.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
B
Notes:
Most government expenditure and revenue is audited annually, and reports address systemic issues and control risks.
30.2 Submission of audit reports to the legislature
C
Notes:
Audit reports were submitted to the legislature within 9 months of the receipt of the annual financial statements.
30.3 External audit follow-up
A
Notes:
Departments generally correct errors found in compliance audits, and the Government takes further action when findings are not followed up by MDAs.
30.4 Supreme Audit Institution independence
D
Notes:
The degree of independence has increased due to revised arrangements for the appointment and dismissal of the President, but financial and staffing independence is still restricted, and initiative for the appointment remains with the Executive.
31. Legislative scrutiny of audit reports
D+
Notes:
31.1 Timing of audit report scrutiny
D
Notes:
Scrutiny of audit reports has been delayed and not completed within twelve months.
31.2 Hearings on audit findings
C
Notes:
A few hearings have been held.
31.3 Recommendations on audit by the legislature
D
Notes:
No recommendations have yet been made to Government based on 2018 and 2019 AB reports.
31.4 Transparency of legislative scrutiny of audit reports
NA
Notes:
Although hearings were held on the report for 2017, no reports have been issued.