I. Credibility of the Budget
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure out-turn compared to original approved budget
D
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)
D
Notes:
In two of the last three years the actual expenditure has deviated from budgeted expenditure by an amount equivalent to more than 15 percent of budgeted expenditure. (p. 14)
2. Composition of expenditure out-turn compared to original approved budget
NU
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)
NU
Notes:
2.2 The average amount of expenditure actually charged to the contingency vote over the last three years
NU
Notes:
3. Aggregate revenue out-turn compared to original approved budget
NU
Notes:
3.1 Actual domestic revenue collection compared to domestic revenue in the originally approved budget
NU
Notes:
4. Stock and monitoring of expenditure payment arrears
C+
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
C
Notes:
The stock of arrears constitutes 2-10 percent of total expenditure; and there is no evidence that it has been reduced significantly in the last two years. (p. 15)
4.2 Availability of data for monitoring the stock of expenditure payment arrears
B
Notes:
Data on the stock of arrears is generated annually, but may not be complete for a few identified expenditure categories or specified budget institutions. (p. 15)
II. Comprehensiveness and Transparency
Scores by Dimension
Overall Indicator Score
5. Classification of the budget
A
Notes:
5.1 The classification system used for formulation, execution and reporting of the central government's budget
A
Notes:
The budget formulation and execution is based on administrative, economic and sub-functional classification, using GFS/COFOG standards or a standard that can produce consistent documentation according to those standards. (Program classification may substitute for subfunctional classification, if it is applied with a level of detail at least corresponding to sub-functional.) (p. 16)
6. Comprehensiveness of information included in budget documentation
A
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)
A
Notes:
Recent budget documentation fulfils 7-9 of the 9 information benchmarks. (p. 17)
7. Extent of unreported government operations
A
Notes:
7.1 The level of extra-budgetary expenditure (other than donor funded projects) which is unreported i.e. not included in fiscal reports.
A
Notes:
The level of unreported extra-budgetary expenditure (other than donor funded projects) is insignificant (below 1 percent of total expenditure). (p. 18)
7.2 Income/expenditure information on donor-funded projects which is included in fiscal reports.
A
Notes:
Complete income/expenditure information for 90 percent (value) of donor-funded projects is included in fiscal reports, and these expenditures represent less than 1 percent of executed expenditures of the general administration in 2008. (p. 18)
8. Transparency of inter-governmental fiscal relations
NU
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);
NU
Notes:
8.2 Timeliness of reliable information to SN governments on their allocations from central government for the coming year;
NU
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.
NU
Notes:
9. Oversight of aggregate fiscal risk from other public sector entities.
B+
Notes:
9.1 Extent of central government monitoring of AGAs and PEs.
B
Notes:
All major AGAs/PEs submit fiscal reports including audited accounts to provincial government at least annually, and provincial government consolidates overall fiscal risk issues into a report. (p. 19)
9.2 Extent of central government monitoring of SN government's fiscal position
A
Notes:
Local government cannot generate fiscal risk for the provincial government. (p. 19)
10. Public access to key fiscal information
B
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)
B
Notes:
The government makes available to the public 3-4 of the 6 listed types of information (p. 20)
III. Policy-Based Budgeting
Scores by Dimension
Overall Indicator Score
11. Orderliness and participation in the annual budget process
B+
Notes:
11.1 Existence of and adherence to a fixed budget calendar;
C
Notes:
An annual budget calendar exists, but is rudimentary and substantial delays may often be experienced in its implementation. It allows MDAs little time to complete detailed estimates, and many fail to complete them on time. (p. 21)
11.2 Clarity/comprehensiveness of and political involvement in the guidance on the preparation of budget submissions (budget circular or equivalent);
A
Notes:
A comprehensive and clear budget circular is issued to MDAs, which reflects ceilings approved by Cabinet (or equivalent) prior to the circular’s distribution to MDAs. (p. 21)
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. 21)
12. Multi-year perspective in fiscal planning, expenditure policy and budgeting
D+
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 annual basis. (p. 23)
12.2 Scope and frequency of debt sustainability analysis
D
Notes:
No DSA has been undertaken in the last three years. (p. 23)
12.3 Existence of sector strategies with multi-year costing of recurrent and investment expenditure;
C
Notes:
Statements of sector strategies exist for several major sectors but are only substantially costed for sectors representing up to 25 percent of primary expenditure OR costed strategies cover more sectors but are inconsistent with aggregate fiscal forecasts. (p. 23)
12.4 Linkages between investment budgets and forward expenditure estimates.
C
Notes:
Many investment decisions have weak links to sector strategies and their recurrent cost implications are included in forward budget estimates only in a few (but major) cases. (p. 23)
IV. Predictability and Control in Budget Execution
Scores by Dimension
Overall Indicator Score
13. Transparency of taxpayer obligations and liabilities
NU
Notes:
13.1 Clarity and comprehensiveness of tax liabilities
NU
Notes:
13.2 Taxpayer access to information on tax liabilities and administrative procedures.
NU
Notes:
13.3 Existence and functioning of a tax appeals mechanism.
NU
Notes:
14. Effectiveness of measures for taxpayer registration and tax assessment
NU
Notes:
14.1 Controls in the taxpayer registration system.
NU
Notes:
14.3 Planning and monitoring of tax audit and fraud investigation programs.
NU
Notes:
14.2 Effectiveness of penalties for non-compliance with registration and declaration obligations
NU
Notes:
15. Effectiveness in collection of tax payments
NU
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).
NU
Notes:
15.2 Effectiveness of transfer of tax collections to the Treasury by the revenue administration.
NU
Notes:
15.3 Frequency of complete accounts reconciliation between tax assessments, collections, arrears records and receipts by the Treasury.
NU
Notes:
16. Predictability in the availability of funds for commitment of expenditures
C+
Notes:
16.2 Reliability and horizon of periodic in-year information to MDAs on ceilings for expenditure commitments
C
Notes:
MDAs are provided reliable information for one or two months in advance. (p. 25)
16.3 Frequency and transparency of adjustments to budget allocations, which are decided above the level of management of MDAs.
C
Notes:
Significant in-year budget adjustments are frequent, but undertaken with some transparency. (p. 25)
16.1 Extent to which cash flows are forecast and monitored
A
Notes:
A cash flow forecast is prepared for the fiscal year exercise, and is updated monthly based on actual input and output of cash. (p. 25)
17. Recording and management of cash balances, debt and guarantees
B
Notes:
17.1 Quality of debt data recording and reporting
C
Notes:
Domestic and foreign debt records are complete, updated, and reconciled at least annually. Data quality is considered fair, but some gaps and reconciliation problems are recognized. Reports on debt stocks and service are produced only occasionally or with limited content. (p. 26)
17.2 Extent of consolidation of the government’s cash balances
B
Notes:
Most cash balances are calculated and consolidated at least weekly, but some extra-budgetary funds remain outside the arrangement. (p. 26)
17.3 Systems for contracting loans and issuance of guarantees.
A
Notes:
Provincial 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. 26)
18. Effectiveness of payroll controls
C+
Notes:
18.1 Degree of integration and reconciliation between personnel records and payroll data.
A
Notes:
The database and payroll staff are directly linked to ensure data consistency and monthly reconciliation. (p. 27)
18.2 Timeliness of changes to personnel records and the payroll
C
Notes:
Up to three months’ delay occurs in processing changes to personnel records and payroll for a large part of changes. This leads to frequent retroactive adjustments. (p. 27)
18.3 Internal controls of changes to personnel records and the payroll.
C
Notes:
Controls exist, but are not adequate to ensure full integrity of data. (p. 27)
18.4 Existence of payroll audits to identify control weaknesses and/or ghost workers.
C
Notes:
Partial payroll audits or staff surveys have been undertaken within the last 3 years. (p. 27)
19. Transparency, competition and complaints mechanisms in procurement
NU
Notes:
19.1 Transparency, comprehensiveness and competition in the legal and regulatory framework
Notes:
19.2 Use of competitive procurement methods
Notes:
19.3 Public access to complete, reliable and timely procurement information
Notes:
19.4 Existence of an independent administrative procurement complaints system
NU
Notes:
20. Effectiveness of internal controls for non-salary expenditure
B+
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. 29)
20.2 Comprehensiveness, relevance and understanding of other internal control rules/ procedures
B
Notes:
Other internal control rules and procedures incorporate a comprehensive set of controls, which are widely understood, but may in some areas be excessive (e.g. through duplication in approvals) and lead to inefficiency in staff use and unnecessary delays. (p. 29)
20.3 Degree of compliance with rules for processing and recording transactions
B
Notes:
Compliance with rules is fairly high, but simplified/emergency procedures are occasionally used without adequate justification. (p. 29)
21. Effectiveness of internal audit
C+
Notes:
21.1 Coverage and quality of the internal audit function.
B
Notes:
Internal audit is operational for the majority of provincial government entities (measured by value of revenue/expenditure), and substantially meets professional standards. At least 50 percent of staff time focuses on systemic issues. (p. 30)
21.2 Frequency and distribution of reports
C
Notes:
Reports are issued regularly for most government entities, but may not be submitted to the Ministry of Finance or the Supreme Audit Institution. (p. 30)
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. 30)
V. Accounting, Recording and Reporting
Scores by Dimension
Overall Indicator Score
22. Timeliness and regularity of accounts reconciliation
B+
Notes:
22.1 Regularity of bank reconciliations
A
Notes:
Bank reconciliation for all provincial government bank accounts take place at least monthly at aggregate and detailed levels, usually within four weeks of end of period. (p. 31)
22.2 Regularity of reconciliation and clearance of suspense accounts and advances.
B
Notes:
Reconciliation and clearance of suspense accounts and advances take place at least annually within two months of end of period. Some accounts have uncleared balances brought forward. (p. 31)
23. Availability of information on resources received by service delivery units
C
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
C
Notes:
Special surveys undertaken within the last three years have shown the level of resources received in cash and in kind by either primary schools or primary health clinics covering a significant part of the country OR by primary service delivery units at local community level in several other sectors. (p. 31)
24. Quality and timeliness of in-year budget reports
B+
Notes:
24.1 Scope of reports in terms of coverage and compatibility with budget estimates
B
Notes:
Classification allows comparison to budget but only with some aggregation. Expenditure is covered at both commitment and payment stages. (p. 32)
24.2 Timeliness of the issue of reports
B
Notes:
Reports are prepared quarterly, and issued within six weeks of end of quarter. (p. 32)
24.3 Quality of information
A
Notes:
There are no material concerns regarding data accuracy. (p. 32)
25. Quality and timeliness of annual financial statements
C+
Notes:
25.1 Completeness of the financial statements
B
Notes:
A consolidated government statement is prepared annually. These statements include, with few exceptions, full information on revenue, expenditure, and financial assets/liabilities. (p. 32)
25.2 Timeliness of submission of the financial statements
A
Notes:
The statement is submitted for external audit within six months of the end of the fiscal year. (p. 32)
25.3 Accounting standards used
C
Notes:
Statements are presented in consistent format over time with some disclosure of accounting standards. (p. 32)
VI. External Scrutiny and Audit
Scores by Dimension
Overall Indicator Score
26. Scope, nature and follow-up of external audit
B+
Notes:
26.1 Scope/nature of audit performed (incl. adherence to auditing standards).
B
Notes:
Provincial 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. 33)
26.2 Timeliness of submission of audit reports to legislature.
A
Notes:
Audit reports are submitted to the legislature within 4 months of the end of the period covered and in the case of financial statements from their receipt by the audit office. (p. 33)
26.3 Evidence of follow up on audit recommendations
B
Notes:
A formal response is made in a timely manner, but there is little evidence of systematic follow up. (p. 33)
27. Legislative scrutiny of the annual budget law
NU
Notes:
27.1 Scope of the legislature’s scrutiny.
NU
Notes:
27.2 Extent to which the legislature’s procedures are well-established and respected.
NU
Notes:
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
NU
Notes:
27.4 Rules for in-year amendments to the budget without ex-ante approval by the legislature.
NU
Notes:
28. Legislative scrutiny of external audit reports
NU
Notes:
28.1 Timeliness of examination of audit reports by the legislature (for reports received within the last three years).
NU
Notes:
28.2 Extent of hearings on key findings undertaken by the legislature.
NU
Notes:
28.3 Issuance of recommended actions by the legislature and implementation by the executive.
NU
Notes:
Donor Practices
Scores by Dimension
Overall Indicator Score
D-1 Predictability of Direct Budget Support
NU
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).
NU
Notes:
D-1.2 In-year timeliness of donor disbursements (compliance with aggregate quarterly estimates)
NU
Notes:
D-2 Financial information provided by donors for budgeting and reporting on project and program aid
NU
Notes:
D-2.1 Completeness and timeliness of budget estimates by donors for project support.
NU
Notes:
D-2.2 Frequency and coverage of reporting by donors on actual donor flows for project support.
NU
Notes:
D-3 Proportion of aid that is managed by use of national procedures
NU
Notes:
D-3.1 Overall proportation of aid funds to central government that are managed through national procedures
NU
Notes:
