I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
B
Notes:
1.1 Aggregate expenditure outturn
B
Notes:
Aggregate expenditure outturn was between 90% and 110% of the approved aggregate budgeted expenditure in at least two of the last three years. It was 108% in FY 2018/19, 102% in FY 2019/20 and 113% in FY 2020/21.
2. Expenditure composition outturn
C+
Notes:
2.1 Expenditure composition outturn by function
B
Notes:
The composition outturn by administrative classification was less than 10% in the last three completed fiscal years. It was 7.2%, 6.8% and 6.5% for the FYs 2018/19, 2019/20 and 2020/21 respectively.
2.2 Expenditure composition outturn by economic type
C
Notes:
Variance in expenditure composition by economic classification was less than 15% in at least two of the last three years.
2.3 Expenditure from contingency reserves
A
Notes:
Actual expenditure charged to the contingency vote was on average 2.1% of the original budget for FYs 2018/19 to 2020/21.
Notes:
3.1 Aggregate revenue outturn
B
Notes:
Actual revenue was between 94% and 112% of budgeted revenue in at least two of the last three years.
3.2 Revenue composition outturn
B
Notes:
Variance in revenue composition was less than 10% in two of the last three years.
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 administrative, economic and functional/sub-functional classification based on the GFSM 2014 standards.
Notes:
5.1 Budget documentation
B
Notes:
Budget documentation fulfills 9 elements, including all 4 basic elements, plus 5 additional elements.
6. Central government operations outside financial reports
B+
Notes:
6.1 Expenditure outside financial reports
A
Notes:
All entities which are controlled and mainly financed by GoR are on budget and included in fiscal reports. Part of the RSSB expenditure is unreported; this accounts for 0.86% of CG budgeted expenditure for FY2020/2021 (refer to Table 6.2).
6.2 Revenue outside financial reports
C
Notes:
For FY2020/2021, revenue outside financial reports was 9.6% (please, refer to Table 6.3).
6.3 Financial reports of extrabudgetary units
A
Notes:
Detailed financial reports of all extrabudgetary units, including RSSB, are submitted to government annually within three months of the end of the FY.
7. Transfers to subnational governments
B
Notes:
7.1 System for allocating transfers
A
Notes:
The horizontal allocation of all transfers for the devolved sectors to districts from central government is determined by a transparent, rule-based system, and was applicable to both conditional and unconditional grants.
7.2 Timeliness of information on transfers
C
Notes:
LGs received information from CG for the preparation of their budget estimates for FY2020/2021 before the start of their fiscal year.
8. Performance information for service delivery
D
Notes:
8.1 Performance plans for service delivery
D
Notes:
Available data indicated that Only 32% by value of central government entities prepare and publish annual action plans with key performance indicators relating to outputs and outcomes.
8.2 Performance achieved for service delivery
D
Notes:
Quarterly and annual performance reports, with information on outputs andoutcomes are prepared at sector level, by central government agencies listed in Table 8.1 above, and submitted to MINECOFIN for consolidation.
8.3 Resources received by service delivery units
D
Notes:
A framework for tracking all resources received (both cash and kind) is yet to be fully operational for MoE. The resource tracking tool for MoH is not functional.
8.4 Performance evaluation for service delivery
C
Notes:
Independent evaluations ofthe efficiency and effectiveness of service delivery for sectorsrepresenting 47%, 32% and 40% by value for FYs 2018/2019, 2019/2020, and 2020/2021 respectively, have been carried out by Rwanda Governance Board (RGB) through the Rwanda Governance Score Card; the 8th edition was published by RGB in 2021 (for evaluation of the sectors listed in Table 8.2 below) and is available on RGB website.
9. Public access to fiscal information
B
Notes:
9.1 Public access to fiscal information
B
Notes:
GoR makes available to the public 7 elements, including 4 basic elements plus 3 additional elements.
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
B
Notes:
10.1 Monitoring of public corporations
B
Notes:
As shown in Table 10.1 below,at least 79.9% by value ofpublic enterprises publish their audited annual financial statements on the website within six months after the end of the financial year.
10.2 Monitoring of subnational governments
C
Notes:
As shown in Table 10.2 below,all districts submitted their annual financial statements to MINECOFIN within one month after the end of the fiscal year 2020/2021.
10.3 Contingent liabilities and other fiscal risks
A
Notes:
Government quantifies all contingent liabilities, including PPPs. As at 30th June 2021, total contingent liabilities (excluding PPPs) stood at RWF 76,093,226,214.
11. Public investment management
B+
Notes:
11.1 Economic analysis of investment proposals
B
Notes:
For FY2020/2021, all major investment projects (as shown in Table 11.1 above) went through economic analysis, with appraisal documents submitted to MINECOFIN, in accordance with the national investment policy guidelines to ascertain the socio-economic viability of these projects.
11.2 Investment project selection
A
Notes:
FY2020/2021, Cabinet reviewed the final results of the appraisal documents received from NDPR.
11.3 Investment project costing
A
Notes:
Investment projects show the total capital cost plus a three-year breakdown of total investment cost, in addition to the forward-linked recurrent cost of the investment project; these are included in th annual budget submitted to the legislature.
11.4 Investment project monitoring
C
Notes:
The NDPR, in collaboration with M&E departments of each implementing agency, monitor and evaluate all investment projects in line with established guidelines.
12. Public asset management
C
Notes:
12.1 Financial asset monitoring
C
Notes:
MINECOFIN maintains and record of GoR’s investments in public and private enterprises, including cash/bank balances as well as the acquisition cost of GoR’s investment.
12.2 Nonfinancial asset monitoring
C
Notes:
Each budgeted central government institution maintains an asset register in addition to the data captured by IFMIS.
12.3 Transparency of asset disposal
C
Notes:
The sales and disposal of government fixed assets are highlighted in the Law No. 50/2008 of 9th September 2008. Disposal of fixed asset is through public auction once the valuation committee approve the assets to be disposed.
Notes:
13.1 Recording and reporting of debt and guarantees
B
Notes:
All public debt and guarantees are reconciled at least quarterly. MINECOFIN prepares and publishes complete and accurate semi-annual and annual debt reports comprising stock of domestic, external, debt service payments and disbursements, and selected public debt sustainability ratios and relevant statistics.
13.2 Approval of debt and guarantees
A
Notes:
For FY2020/2021 and in accordance with Article 50 of the Organic Budget Law 2013, the Minister of Finance is the sole authority to borrow and approve all guarantees on behalf of the Government of Rwanda (for both budgetary units and extra-budgetary units), including PPPs.
13.3 Debt management strategy
A
Notes:
MINECOFIN has produced a current three-year mediumterm debt strategy (MTDS), published on MINECOFIN website.
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
14. Macroeconomic and fiscal forecasting
A
Notes:
14.1 Macroeconomic forecasts
A
Notes:
The government prepares forecasts of key macroeconomic indicators, which, together with the underlying assumptions, are included in budget documentation submitted to the legislature.
Notes:
The detailed budget estimates present projections of the main fiscal indicators, including revenue by type, expenditure, the budget balance and financing, for the ensuing fiscal year plus two outer years.
14.3 Macrofiscal sensitivity analysis
B
Notes:
The government prepares, for internal use, a range of fiscal forecasts scenarios based on alternative macroeconomic assumptions.
Notes:
15.1 Fiscal impact of policy proposals
D
Notes:
The government does assess the fiscal impact of new revenue and expenditure policy proposals for the coming year, but not for all changes (i.e., 90% in value).
15.2 Fiscal strategy adoption
A
Notes:
The GoR has set three-year medium-term fiscal objectives with quantitative targets at the start of the budget preparation in each of the last 3 FYs.
15.3 Reporting on fiscal outcomes
A
Notes:
The government has submitted to the legislature and published with the annual budget a report that describes progress made against its fiscal strategy and provides an explanation of the reasons for any deviation from the objectives and targets set.
16. Medium-term perspective in expenditure budgeting
B+
Notes:
16.1 Medium-term expenditure estimates
A
Notes:
The annual budget includes estimates of expenditure for the budget year and the two following fiscal years allocated by administrative, economic and program (or functional) classification.
16.2 Medium-term expenditure ceilings
D
Notes:
Aggregate and ministry-level expenditure ceilings for the budget year and the two following fiscal years are not approved by Cabinet before the issuance of the first budget circular.
16.3 Alignment of strategic plans and medium-term budgets
A
Notes:
Medium-term strategic plans are prepared for 78% of MDAs and the expenditure policy proposals in the annual budget estimates align with the strategic plans.
16.4 Consistency of budgets with previous year’s estimates
A
Notes:
The budget documents provide an explanation of all changes to expenditure estimates between the last medium-term budget and the current medium-term budget at the ministry level.
17. Budget preparation process
C+
Notes:
Notes:
MINECOFIN issues a clear and comprehensive fixed budget calendar to MDAs. The BCC allows at least three months for MDAs to prepare budget estimates.
17.2 Guidance on budget preparation
C
Notes:
The BCCs issued are both comprehensive and clear and the second BCC includes ceilings by administrative and functional areas.
17.3 Budget submission to the legislature
D
Notes:
The executive submitted the annual budget proposal to the legislature less than one month before the start of the fiscal year.
18. Legislative scrutiny of budgets
A
Notes:
18.1 Scope of budget scrutiny
A
Notes:
The legislature first reviews and approves the BFP before the budget is formally presented: the timeframe allows detailed debate and scrutiny.
18.2 Legislative procedures for budget scrutiny
A
Notes:
The legislature’s procedures to review budget are firmly established in law and are respected.
18.3 Timing of budget approval
A
Notes:
The legislature approved the annual budget before the start of the FY in the last three years.
18.4 Rules for budget adjustment by the executive
A
Notes:
Clear rules exist for in-year budget adjustments by the executive.
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
A
Notes:
The rights and obligations of revenue measures are provided to the public in a variety of ways, including through the website (www.rra.gov.rw), electronic media (radio and TV), print media (newspapers, magazines, and client leaflets), Facebook, and a toll-free telephone system (3004).
19.2 Revenue risk management
A
Notes:
The Rwanda Revenue Authority has developed a comprehensive risk management framework that assures smooth risk profiling of taxpayers.
19.3 Revenue audit and investigation
A
Notes:
RRA completed a little over 95% by number of planned audits and fraud investigations for the last completed fiscal year 2020/2021.
19.4 Revenue arrears monitoring
C
Notes:
The stock of revenue arrears for the last completed fiscal year 2020/2021 amounted to Rwf485.1 billion. This represents 29.3% of total central government revenues for the same period. Revenue arrears older than 12 month represent 58.8% of total revenue arrears for th period under review.
20. Accounting for revenue
B+
Notes:
20.1 Information on revenue collections
A
Notes:
The RRA, collecting all central government revenues, prepares a monthly revenu report with detailed information on all types of revenue collections (income tax, customs revenue, VAT, excise duties, and non-tax revenue).
20.2 Transfer of revenue collections
B
Notes:
Transfers from the RRA transit account to the National Treasury account is done daily, automatically, leaving a zerobalance at close of business.
20.3 Revenue accounts reconciliation
A
Notes:
Complete reconciliation between assessment, collections, transfers and arrears is undertaken monthly within two weeks.
21. Predictability of in-year resource allocation
B+
Notes:
21.1 Consolidation of cash balances
A
Notes:
All budgeted central bank accounts are consolidated on a daily basis. The National Treasury operates a TSA, with zero-balance sub-accounts for budgetary units.
21.2 Cash forecasting and monitoring
B
Notes:
For FY2020/20201 and in line with the requirement of Article 42 of OBL No.12/2013/OL, a consolidated annual cashflow forecast is prepared by MINECOFIN, after receiving inputs from budgetary units.
21.3 Information on commitment ceilings
B
Notes:
For FY2020/2021, MDAs were provided reliable information on commitment ceilings in advance, at least quarterly.
21.4 Significance of in-year budget adjustments
A
Notes:
There are clear guidelines on in-year budget adjustments. These are stipulated in Article 46 of the OBL.
22. Expenditure arrears
C+
Notes:
22.1 Stock of expenditure arrears
C
Notes:
The analysis (please refer to Table 22.1 below) indicates that arrears represent 7.51% of total budgeted central government expenditure in 2018/2019, 9.77% in 2019/2020, and 10.73% in 2020/20201.
22.2 Expenditure arrears monitoring
A
Notes:
A consolidated data and age of expenditure arrears is generated quarterly within a month after the end of the quarter.
Notes:
23.1 Integration of payroll and personnel records
A
Notes:
Central government’s HR database is directly linked to IPPIS and IFMIS, allowing timely (daily) reconciliation and control of approved personnel and payroll budget.
23.2 Management of payroll changes
A
Notes:
All required changes to the personnel records and payroll are updated monthly, in time for processing and payment of Nthe following month’s salaries, covering all central government operations (budgetary units and extrabudgetary units).
23.3 Internal control of payroll
A
Notes:
Access to personnel and payroll records of central government institutions is limited to only authorized staff. Both the HR and payroll software are password protected.
Notes:
During the fiscal year 2019/2020, OAG conducted a comprehensive payroll audit of all central government institutions.
Notes:
24.1 Procurement monitoring
A
Notes:
RPPA maintains complete data on procurement contracts, including data on value of procurement contracts awarded for goods, works, services and works, and database of suppliers/contractors.
24.2 Procurement methods
C
Notes:
As indicated in Table 24.2 below, competitive procurement method (national and international) by value accounted for 62.4% of total central government procurement for FY2020/2021.
24.3 Public access to procurement information
B
Notes:
The government meets at least five out of the six PEFA criteria as shown in Table 24.3 below, with published procurement information meeting the timeframe that is useful for the public.
24.4 Procurement complaints management
B
Notes:
Element one (1) and three others are met. The fact that the number of IRP members are, at the moment, only five (5) instead of eleven (11) as required the procurement law, the complaints process may be compromised.
25. Internal controls on nonsalary expenditure
B+
Notes:
25.1 Segregation of duties
A
Notes:
The PFM laws and regulations also provide clear guidance on segregation of duties for expenditure initiation, authorisation and approval, disbursement, expenditure payment, acquisition, use and disposal of public assets, recording and reconciliation.
25.2 Effectiveness of expenditure commitment controls
A
Notes:
All budget institutions use IFMIS for expenditure commitment, including extrabudgetary units, except for Rwanda Social Security Board that uses its own financial management software.
25.3 Compliance with payment rules and procedures
C
Notes:
Expenditure payments are generally compliant with payment rules andprocedures. According to OAG,non-compliance levels acrosscentral government stands at 29% by value.
Notes:
26.1 Coverage of internal audit
A
Notes:
As shown in Table 26.1 below, internal audit coverage was 96.9% by value of total central government expenditures and 99.6% by value of central government revenues.
26.2 Nature of audits and standards applied
C
Notes:
Internal audit functions largely focus on financial compliance. Risk-based audit is yet to take root.
26.3 Implementation of internal audits and reporting
B
Notes:
As shown in Table 26.2 below, between 83% and 89% of programmed audits have been completed within the last three competed fiscal years.
26.4 Response to internal audits
B
Notes:
Table 26.3 below summarises management responses to internal audits during the last three completed fiscal years.
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
27. Financial data integrity
A
Notes:
27.1 Bank account reconciliation
B
Notes:
Bank reconciliation is undertaken by budget agencies and the treasury for all BCG bank accounts on a monthly basis, at aggregate and detailed levels within 15 days from the end of the month.
Notes:
This dimension is not applicable as there are no suspense accounts.
Notes:
All advances are reconciled in a timely manner, monthly within 15 days after the end of the previous month.
27.4 Financial data integrity processes
A
Notes:
The financial management system is strong, passworded with restricted access to authorized staff only.
28. In-year budget reports
C+
Notes:
28.1 Coverage and comparability of reports
A
Notes:
For FY2020/20201, coverage and classification of data allows for a direct comparison of actual to the original budget for all items of expenditure. The report also includes information on expenditures made from transfers made to deconcentrated central units.
28.2 Timing of in-year budget reports
C
Notes:
For FY2020/21, MINECOFIN issued and published on its website the quarter 1 report on 15th November 2020 (46 days after the end of the quarter), quarter 2 was issued and published on 15th February 2021 (45 days after the end of the quarter), quarter 3 was issued and published on 15th May 2021 (46 days after the end of the quarter), and quarter 4 was issued and published on 15th August 2021 (45 days after the end of the quarter).
28.3 Accuracy of in-year budget reports
C
Notes:
There are still data concerns as highlighted by OAG, but showing improvement over the years, with 35% noncompliance and financial data inaccuracies in 2019/2020 to 32% in 2020/2021.
29. Annual financial reports
B+
Notes:
29.1 Completeness of annual financial reports
A
Notes:
GoR prepares consolidated annual financial statements each year. For FY2020/2021, the consolidated annual financial statements contain information on revenues, expenditure, financial assets, financial liabilities, guarantees, and long-term obligations.
29.2 Submission of reports for external audit
A
Notes:
For FY2020/21, CFSs were submitted to OAG on the 29th September 2021, within three months after the end of the fiscal year
29.3 Accounting standards
B
Notes:
For all three years under assessment, accounting standards were consistently applied in line with national PFM laws.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
B
Notes:
As shown in Table 30.1, audit coverage stood at 85.9% and 87.1% of CG revenues and CG expenditures for FY2018/2019.
30.2 Submission of audit reports to the legislature
C
Notes:
As shown in Table 30.2 below, the AG has submitted the consolidated audit reports to parliament within seven (7) months of the receipt of the consolidated annual financial statements.
30.3 External audit follow-up
B
Notes:
The OAG management letters are formally responded to in timely and comprehensive manner with institutional commitments for resolution of identified issues.
30.4 Supreme Audit Institution independence
D
Notes:
The independence of the OAG is undermined by the fact that its budget is subject to MoF’s approval.
31. Legislative scrutiny of audit reports
B+
Notes:
31.1 Timing of audit report scrutiny
C
Notes:
As indicated in Table 31.1 below, this review has been completed within 7 months on average as follows: 5.2 months (FY2017/18), 6.4 months (FY2018/19) and 8.5 months during the start of the COVID 19 pandemic (FY2019/20).
31.2 Hearings on audit findings
A
Notes:
For FY2017/2018 to FY2019/2020, PAC conducted in-depth hearings for all central government institutions with adverse or qualified audit opinion.
31.3 Recommendations on audit by the legislature
A
Notes:
For three years (2017/2018 to 2019/2020) under review, PAC made systematic follow ups on the execution of its recommendations during the semi-annual hearings on budget execution, conducted field visits and scheduled meetings as needed with auditees to track the level of implementation of PAC’s recommendations.
31.4 Transparency of legislative scrutiny of audit reports
A
Notes:
Within the last three completed fiscal years covered by this assessment, all hearings are conducted in public, except for matters related to national security.