I. Credibility of the Budget
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure out-turn compared to original approved budget
B
Notes:
1.1 The difference between actual primary expenditure and the originally budgeted primary expenditure (i.e. excluding debt service charges, but also excluding externally financed project expenditure)
B
Notes:
In no more than one of the last three years did actual aggregate expenditure deviate from the original budget by more than 10%. (p. 23)
2. Composition of expenditure out-turn compared to original approved budget
B+
Notes:
2.1 Extent of the variance in expenditure composition during the last three years, excluding contingency items (the methodolodgy to rate this dimension is set out in the footnote of the PFM PMF booklet)
B
Notes:
Variance in expenditure exceeded 10% in no more than one of the last three years. (p. 24)
2.2 The average amount of expenditure actually charged to the contingency vote over the last three years
A
Notes:
Actual expenditure charged to the contingency vote was on average less than 3% of the original budget. (p. 24)
3. Aggregate revenue out-turn compared to original approved budget
C
Notes:
3.1 Actual domestic revenue collection compared to domestic revenue in the originally approved budget
C
Notes:
Actual domestic revenue was between 92% and 116% for each of the last three years. (p. 27)
4. Stock and monitoring of expenditure payment arrears
A
Notes:
4.1 Stock of expenditure payment arrears (as a percentage of actual total expenditure for the corresponding fiscal year) and any recent change in the stock
A
Notes:
The stock of arrears is low (i.e. is below 2% of total expenditures). (p. 28)
4.2 Availability of data for monitoring the stock of expenditure payment arrears
A
Notes:
Reliable and complete data on the stock of arrears is generated through routine procedures at least at the end of each fiscal year (and includes an age profile). (p. 29)
II. Comprehensiveness and Transparency
Scores by Dimension
Overall Indicator Score
5. Classification of the budget
C
Notes:
5.1 The classification system used for formulation, execution and reporting of the central government's budget
C
Notes:
The budget formulation and execution is based on an administrative and economic classification using GFS standards or a standard that can produce consistent documentation according to those standards. (p. 30)
6. Comprehensiveness of information included in budget documentation
B
Notes:
6.1 Share of the listed information under PI-6 in the PFM PMF booklet in the budget documentation most recently issued by the central government (in order to count in the assessment, the full specification of the information benchmark must be met)
B
Notes:
Recent budget documentation fulfils 5-6 of the 9 information benchmarks. (p. 31)
7. Extent of unreported government operations
D
Notes:
7.1 The level of extra-budgetary expenditure (other than donor funded projects) which is unreported i.e. not included in fiscal reports.
D
Notes:
The level of unreported government expenditure exceeds 10% of government expenditure. (p. 33)
7.2 Income/expenditure information on donor-funded projects which is included in fiscal reports.
D
Notes:
Information on the source of these funds and actual expenditure is seriously deficient and does not even cover loan-financed operations. (p. 33)
8. Transparency of inter-governmental fiscal relations
NA
Notes:
8.1 Transparent and rules based systems in the horizontal allocation among SN governments of unconditional and conditional transfers from central government (both budgeted and actual allocations);
NA
Notes:
8.2 Timeliness of reliable information to SN governments on their allocations from central government for the coming year;
NA
Notes:
8.3 Extent to which consolidated fiscal data (at least on revenue and expenditure) is collected and reported for general government according to sectoral categories.
NA
Notes:
9. Oversight of aggregate fiscal risk from other public sector entities.
D
Notes:
9.1 Extent of central government monitoring of AGAs and PEs.
D
Notes:
Monitoring of AGAs is significantly incomplete. (p. 35)
9.2 Extent of central government monitoring of SN government's fiscal position
NA
Notes:
10. Public access to key fiscal information
D
Notes:
10.1 Number of the above listed elements of public access to information that is fulfilled (in order to count in the assessment, the full specification of the information benchmark must be met)
D
Notes:
None of the listed elements is available. (p. 37)
III. Policy-Based Budgeting
Scores by Dimension
Overall Indicator Score
11. Orderliness and participation in the annual budget process
A
Notes:
11.1 Existence of and adherence to a fixed budget calendar;
B
Notes:
A clear budget calendar exists, but some delays are often experienced in its implementation. The calendar allows MDAs reasonable time (at least four weeks from receipt of the budget circular) so that most of them are able to meaningfully complete their detailed estimates on time. (p. 39)
11.2 Clarity/comprehensiveness of and political involvement in the guidance on the preparation of budget submissions (budget circular or equivalent);
A
Notes:
A clear and comprehensive budget calendar is issued to MDAs, which reflects ceilings approved by Cabinet prior to the circulars distribution. (p. 39)
11.3 Timely budget approval by the legislature or similarly mandated body (within the last three years);
A
Notes:
The legislature has, during the last three years, approved the budget before the start of the fiscal year. (p. 39)
12. Multi-year perspective in fiscal planning, expenditure policy and budgeting
C
Notes:
12.1 Preparation of multi -year fiscal forecasts and functional allocations
C
Notes:
Forecasts of fiscal aggregates (on the basis of the main categories of economic classification) are prepared for at least two years on a rolling basis. (p. 41)
12.2 Scope and frequency of debt sustainability analysis
A
Notes:
A Debt Sustainability Analysis of external debt is undertaken annually. (p. 41)
12.3 Existence of sector strategies with multi-year costing of recurrent and investment expenditure;
D
Notes:
Sector strategies may have been prepared for some sectors, but none of them have substantially complete costing of investments and recurrent expenditure. (p. 41)
12.4 Linkages between investment budgets and forward expenditure estimates.
D
Notes:
Budgeting for investment and recurrent expenditures are separate processes with no recurrent costs estimates being shared. (p. 41)
IV. Predictability and Control in Budget Execution
Scores by Dimension
Overall Indicator Score
13. Transparency of taxpayer obligations and liabilities
D+
Notes:
13.1 Clarity and comprehensiveness of tax liabilities
C
Notes:
Legislation and procedures for some major taxes are comprehensive and clear, but the fairness of the system is questioned due to substantial discretionary powers of the government entities involved. (p. 44)
13.2 Taxpayer access to information on tax liabilities and administrative procedures.
D
Notes:
Taxpayer access to up-to-date legislation and procedural guidelines is seriously deficient. (p. 44)
13.3 Existence and functioning of a tax appeals mechanism.
C
Notes:
A tax appeals system of administrative procedures has been established, but needs substantial redesign to be fair, transparent and effective. (p. 44)
14. Effectiveness of measures for taxpayer registration and tax assessment
A
Notes:
14.1 Controls in the taxpayer registration system.
A
Notes:
Taxpayers are registered in a complete database system with comprehensive direct linkages to other relevant government registration systems and financial regulations. (p. 47)
14.3 Planning and monitoring of tax audit and fraud investigation programs.
B
Notes:
Tax audits and fraud investigations are managed and reported on according to a documented audit plan, with clear risk assessment criteria for audits in at least one major tax area that applies self-assessment. (p. 47)
14.2 Effectiveness of penalties for non-compliance with registration and declaration obligations
A
Notes:
Penalties for all areas of non-compliance are set sufficiently high to act as deterrence and are consistently administered. (p. 47)
15. Effectiveness in collection of tax payments
D+
Notes:
15.1 Collection ratio for gross tax arrears, being the percentage of tax arrears at the beginning of a fiscal year, which was collected during that fiscal year (average of the last two fiscal years).
D
Notes:
The debt collection ratio in the most recent year was below 60% and the total amount of tax arrears is significant (i.e. more than 2% of total annual collections). (p. 49)
15.2 Effectiveness of transfer of tax collections to the Treasury by the revenue administration.
A
Notes:
All tax revenue is paid directly into accounts controlled by the Treasury or transfers to the Treasury are made daily. (p. 49)
15.3 Frequency of complete accounts reconciliation between tax assessments, collections, arrears records and receipts by the Treasury.
A
Notes:
Complete reconciliation of tax assessments, collections, arrears and transfers to Treasury takes place at least monthly within one month of end of month. (p. 49)
16. Predictability in the availability of funds for commitment of expenditures
B+
Notes:
16.2 Reliability and horizon of periodic in-year information to MDAs on ceilings for expenditure commitments
B
Notes:
MDAs are provided reliable information on commitment ceilings at least quarterly in advance. (p. 51)
16.3 Frequency and transparency of adjustments to budget allocations, which are decided above the level of management of MDAs.
A
Notes:
Significant in-year adjustments to budget allocations take place only once or twice in a year and are done in a transparent and predictable way. (p. 51)
16.1 Extent to which cash flows are forecast and monitored
A
Notes:
A cash flow forecast is prepared for the fiscal year, and are updated monthly on the basis of actual cash inflows and outflows. (p. 51)
17. Recording and management of cash balances, debt and guarantees
B+
Notes:
17.1 Quality of debt data recording and reporting
A
Notes:
Domestic and foreign debt records are complete, updated and reconciled on a monthly basis with data considered of high integrity. (p. 52)
17.2 Extent of consolidation of the government’s cash balances
C
Notes:
Calculation of balances takes place irregularly, if at all, and the system used does not allow consolidation of bank balances. (p. 52)
17.3 Systems for contracting loans and issuance of guarantees.
A
Notes:
Central government’s contracting of loans and issuance of guarantees are made against transparent criteria and fiscal targets, and always approved by a single responsible government entity. (p. 52)
18. Effectiveness of payroll controls
B+
Notes:
18.1 Degree of integration and reconciliation between personnel records and payroll data.
A
Notes:
Personnel database and payroll are directly linked to ensure data consistency and monthly reconciliation. (p. 54)
18.2 Timeliness of changes to personnel records and the payroll
A
Notes:
Required changes to the personnel records and payroll are updated monthly, generally in time for the following month’s payments. Retroactive adjustments are rare (if reliable data exists, it shows corrections in max. 3% of salary payments. (p. 54)
18.3 Internal controls of changes to personnel records and the payroll.
A
Notes:
Authority to change records and payroll is restricted and results in an audit trail. (p. 55)
18.4 Existence of payroll audits to identify control weaknesses and/or ghost workers.
B
Notes:
A payroll audit covering all central government entities has been conducted at least once in the last three years (whether in stages or as one single exercise. (p. 55)
19. Transparency, competition and complaints mechanisms in procurement
D+
Notes:
19.1 Transparency, comprehensiveness and competition in the legal and regulatory framework
B
Notes:
The legal framework meets four or five of the six listed requirements. (p. 57)
19.2 Use of competitive procurement methods
D
Notes:
For less than 60% of the value of contracts awarded OR reliable data is not available. (p. 57)
19.3 Public access to complete, reliable and timely procurement information
D
Notes:
The government lacks a system to generate substantial and reliable coverage of key procurement information, OR does not systematically make key procurement information available to the public. (p. 57)
19.4 Existence of an independent administrative procurement complaints system
D
Notes:
The procurement complaints system does not meet criteria (i) & (ii) and one other criterion, OR there is no independent procurement complaints review body. (p. 57)
20. Effectiveness of internal controls for non-salary expenditure
A
Notes:
20.1 Effectiveness of expenditure commitment controls.
A
Notes:
Comprehensive expenditure commitment controls are in place and effectively limit commitments to actual cash availability and approved budget allocations (as revised). (p. 59)
20.2 Comprehensiveness, relevance and understanding of other internal control rules/ procedures
A
Notes:
Other internal control rules and procedures are relevant, and incorporate a comprehensive and generally cost effective set of controls, which are widely understood. (p. 59)
20.3 Degree of compliance with rules for processing and recording transactions
A
Notes:
Compliance with rules is very high and any misuse of simplified and emergency procedures is insignificant. (p. 59)
21. Effectiveness of internal audit
A
Notes:
21.1 Coverage and quality of the internal audit function.
A
Notes:
Internal audit is operational for all central government entities, and generally meet professional standards. It is focused on systemic issues (at least 50% of staff time). (p. 62)
21.2 Frequency and distribution of reports
A
Notes:
Reports adhere to a fixed schedule and are distributed to the audited entity, ministry of finance and the SA. (p. 62)
21.3 Extent of management response to internal audit findings.
B
Notes:
Prompt and comprehensive action is taken by many (but not all) managers. (p. 62)
V. Accounting, Recording and Reporting
Scores by Dimension
Overall Indicator Score
22. Timeliness and regularity of accounts reconciliation
D
Notes:
22.1 Regularity of bank reconciliations
D
Notes:
Bank reconciliation for all central government Treasury managed bank accounts take place less frequently than quarterly OR with backlogs of several months. (p. 63)
22.2 Regularity of reconciliation and clearance of suspense accounts and advances.
D
Notes:
Reconciliation and clearance of suspense accounts and advances take place either annually with more than two months delay, OR less frequently. (p. 64)
23. Availability of information on resources received by service delivery units
D
Notes:
23.1 Collection and processing of information to demonstrate the resources that were actually received (in cash and kind) by the most common front-line service delivery units (focus on primary schools and primary health clinics) in relation to the overall
D
Notes:
No comprehensive data collection on resources to service delivery units in any major sector has been collected and processed within the last 3 years. (p. 65)
24. Quality and timeliness of in-year budget reports
C+
Notes:
24.1 Scope of reports in terms of coverage and compatibility with budget estimates
C
Notes:
Comparison to budget is possible only for main administrative headings. Expenditure is captured either at commitment or at payment stage (not both). (p. 66)
24.2 Timeliness of the issue of reports
A
Notes:
Reports are prepared quarterly or more frequently, and issued within 4 weeks of end of period. (p. 67)
24.3 Quality of information
C
Notes:
There are some concerns about the accuracy of information, which may not always be highlighted in the repots, but this does not fundamentally undermine their basic usefulness. (p. 67)
25. Quality and timeliness of annual financial statements
C+
Notes:
25.1 Completeness of the financial statements
A
Notes:
A consolidated government statement is prepared annually and includes full information on revenue, expenditure and financial assets/liabilities. (p. 69)
25.2 Timeliness of submission of the financial statements
C
Notes:
The statements are submitted for external audit within 15 months of the end of the fiscal year. (p. 69)
25.3 Accounting standards used
A
Notes:
IPSAS or corresponding national standards are applied for all statements. (p. 69)
VI. External Scrutiny and Audit
Scores by Dimension
Overall Indicator Score
26. Scope, nature and follow-up of external audit
D+
Notes:
26.1 Scope/nature of audit performed (incl. adherence to auditing standards).
B
Notes:
Central government entities representing at least 75% of total expenditures are audited annually, at least covering revenue and expenditure. A wide range of financial audits are performed and generally adheres to auditing standards, focusing on significant and systemic issues. (p. 70)
26.2 Timeliness of submission of audit reports to legislature.
D
Notes:
Audit reports are submitted to the legislature more than 12 months of the end of the period covered (for audit of financial statements from their receipt by the auditors). (p. 70)
26.3 Evidence of follow up on audit recommendations
D
Notes:
There is little evidence of response or follow up. (p. 70)
27. Legislative scrutiny of the annual budget law
D+
Notes:
27.1 Scope of the legislature’s scrutiny.
A
Notes:
The legislature’s review covers fiscal policies, medium term fiscal framework and medium term priorities as well as details of expenditure and revenue. (p. 72)
27.2 Extent to which the legislature’s procedures are well-established and respected.
A
Notes:
The legislature’s procedures for budget review are firmly established and respected. They include internal organizational arrangements, such as specialized review committees, and negotiation procedures. (p. 72)
27.3 Adequacy of time for the legislature to provide a response to budget proposals both the detailed estimates and, where applicable, for proposals on macro-fiscal aggregates earlier in the budget preparation cycyle (time allowed in practice for all stag
D
Notes:
The legislature’s review is extremely limited. (p. 72)
27.4 Rules for in-year amendments to the budget without ex-ante approval by the legislature.
B
Notes:
Clear rules exist for in-year budget amendments by the executive, and are usually respected, but they allow extensive administrative reallocations. (p. 73)
28. Legislative scrutiny of external audit reports
D
Notes:
28.1 Timeliness of examination of audit reports by the legislature (for reports received within the last three years).
D
Notes:
Examination of audit reports by the legislature does not take place or usually takes more than 12 months to complete. (p. 75)
28.2 Extent of hearings on key findings undertaken by the legislature.
D
Notes:
No in-depth hearings are conducted by the legislature. (p. 75)
28.3 Issuance of recommended actions by the legislature and implementation by the executive.
D
Notes:
No recommendations are being issued by the legislature. (p. 75)
Donor Practices
Scores by Dimension
Overall Indicator Score
D-1 Predictability of Direct Budget Support
D+
Notes:
D-1.1 Annual deviation of actual budget support from the forecast provided by the donor agencies at least six weeks prior to the government submitting its budget proposals to the legislature (or equivalent approving body).
A
Notes:
In no more than one out of the last three years has direct budget support outturn fallen short of the forecast by more than 5%. (p. 76)
D-1.2 In-year timeliness of donor disbursements (compliance with aggregate quarterly estimates)
D
Notes:
The requirements for score C (or higher) are not met. (p. 76)
D-2 Financial information provided by donors for budgeting and reporting on project and program aid
NA
Notes:
D-2.1 Completeness and timeliness of budget estimates by donors for project support.
NA
Notes:
D-2.2 Frequency and coverage of reporting by donors on actual donor flows for project support.
NA
Notes:
D-3 Proportion of aid that is managed by use of national procedures
A
Notes:
D-3.1 Overall proportation of aid funds to central government that are managed through national procedures
A
Notes:
90% or more of aid funds to central government are managed through national procedures. (p. 78)
