I. Credibility of the Budget
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure out-turn compared to original approved budget
A
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)
A
Notes:
In no more than one out of the three years has the actual expenditure deviated from budgeted expenditure by an amount equivalent to more than 5% of budgeted expenditure. (P. 8)
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 composition exceeded overall deviation in primary expenditure by 5 percentage points in one of the three years (P. 8)
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
A
Notes:
3.1 Actual domestic revenue collection compared to domestic revenue in the originally approved budget
A
Notes:
Actual domestic revenue collection was below 97% of budgeted domestic revenue estimates in no more than one of the three years. (P. 8)
4. Stock and monitoring of expenditure payment arrears
D+
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% of total expenditure; and there is no evidence that it has been reduced significantly in the last two years (P. 8)
4.2 Availability of data for monitoring the stock of expenditure payment arrears
D
Notes:
Data on accounts payable is generated annually, but it does not identify the stock of arrears. (P. 8)
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 administrative and economic classification using a standard that can produce consistent documentation according to GFSM standards. Functional classification is not used for budget execution purposes. (P. 13)
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 of the 9 information benchmarks. (P. 13)
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. (P. 13)
7.2 Income/expenditure information on donor-funded projects which is included in fiscal reports.
A
Notes:
Complete income/expenditure information for more than 90% (value) of donorfunded projects is included in fiscal reports, except inputs provided in-kind. (P. 13)
8. Transparency of inter-governmental fiscal relations
B
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);
A
Notes:
The horizontal allocation of almost all transfers (at least 90% by value) from central government is determined by transparent and rules based systems (P. 13)
8.2 Timeliness of reliable information to SN governments on their allocations from central government for the coming year;
B
Notes:
Sub-national governments are provided reliable information on the allocations to be transferred to them ahead of completing -but not before beginning preparation of- their budget proposals. (P. 13)
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.
D
Notes:
Fiscal information is collected for more than 90% of sub-national government expenditure and consolidated into annual reports within 12 months of the end of the fiscal year; however, the information is not presented according to sectoral categories and does not include budgeted amounts (P. 13)
9. Oversight of aggregate fiscal risk from other public sector entities.
B+
Notes:
9.1 Extent of central government monitoring of AGAs and PEs.
A
Notes:
All major autonomous government agencies and public enterprises submit fiscal reports to central government quarterly, and central government consolidates fiscal risk issues into a report at least annually. The consolidated national-level public sector financial statements are audited. (P. 14)
9.2 Extent of central government monitoring of SN government's fiscal position
B
Notes:
The net fiscal position is monitored at least annually for all levels of sub-national government, with some gaps. Central government consolidates overall fiscal risk into annual reports (P. 14)
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 4 of the 6 examined types of information (P. 14)
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;
A
Notes:
A clear annual budget calendar exists, is generally adhered to and allows ministries and agencies enough time (about 14 weeks from receipt of the budget circular) to meaningfully complete their detailed estimates (P. 19)
11.2 Clarity/comprehensiveness of and political involvement in the guidance on the preparation of budget submissions (budget circular or equivalent);
D
Notes:
Cabinet is involved in approving the allocations only immediately before submission of detailed estimates to the legislature (P. 19)
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. 19)
12. Multi-year perspective in fiscal planning, expenditure policy and budgeting
B+
Notes:
12.1 Preparation of multi -year fiscal forecasts and functional allocations
A
Notes:
Forecasts of fiscal aggregates (on the basis of main categories of economic and sector classification) are prepared for four years on a rolling annual basis. Links between multi-year estimates and subsequent setting of annual budget ceilings are clear and differences explained (P. 18)
12.2 Scope and frequency of debt sustainability analysis
A
Notes:
Debt sustainability analysis for external and domestic debt is undertaken annually (P. 18)
12.3 Existence of sector strategies with multi-year costing of recurrent and investment expenditure;
A
Notes:
Strategies for sectors representing at least 75% of primary expenditure exist with full costing of recurrent and investment expenditure, broadly consistent with fiscal forecasts. (P. 18)
12.4 Linkages between investment budgets and forward expenditure estimates.
C
Notes:
Investments are consistently selected on the basis of relevant sector strategies and included in forward budget estimates for the sector. However, many investment decisions have weak links their recurrent cost implications. (P. 19)
IV. Predictability and Control in Budget Execution
Scores by Dimension
Overall Indicator Score
13. Transparency of taxpayer obligations and liabilities
B
Notes:
13.1 Clarity and comprehensiveness of tax liabilities
D
Notes:
Legislation and procedures for all major taxes are comprehensive, with fairly limited discretionary powers of the government entities involved. The complexity of the system, however, affects clarity of understanding and application. (P. 22)
13.2 Taxpayer access to information on tax liabilities and administrative procedures.
A
Notes:
Taxpayers have easy access to comprehensive, user friendly and up-to-date information on tax liabilities and administrative procedures for all major taxes, supplemented with active taxpayer education campaigns. (P. 22)
13.3 Existence and functioning of a tax appeals mechanism.
B
Notes:
A tax appeals system of transparent administrative procedures is completely set up and functional, but it is not implemented through fully independent institutional structures. (P. 22)
14. Effectiveness of measures for taxpayer registration and tax assessment
B
Notes:
14.1 Controls in the taxpayer registration system.
B
Notes:
Taxpayers are registered in a complete database system with some linkages to other relevant government registration systems and financial sector regulations (P. 22)
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. 22)
14.2 Effectiveness of penalties for non-compliance with registration and declaration obligations
B
Notes:
Penalties for non-compliance with registration and declaration requirements are set sufficiently high to act as deterrence, but are not always consistently administered (P. 22)
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 tax 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. 22)
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 (P. 22)
15.3 Frequency of complete accounts reconciliation between tax assessments, collections, arrears records and receipts by the Treasury.
D
Notes:
Reconciliation of tax assessments, collections, arrears and transfers to Treasury does not take place completely (P. 22)
16. Predictability in the availability of funds for commitment of expenditures
A
Notes:
16.2 Reliability and horizon of periodic in-year information to MDAs on ceilings for expenditure commitments
A
Notes:
Ministries, departments and agencies are able to plan and commit expenditure for at least six months in advance in accordance with the budgeted appropriations (P. 25)
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. 25)
16.1 Extent to which cash flows are forecast and monitored
A
Notes:
A cash flow forecast is prepared for the fiscal year, and is updated monthly and daily on the basis of actual cash inflows and outflows (P. 25)
17. Recording and management of cash balances, debt and guarantees
B+
Notes:
17.1 Quality of debt data recording and reporting
B
Notes:
Domestic and foreign debt records are complete, updated and reconciled monthly. Data is considered of high integrity, but minor reconciliation problems occur. Comprehensive management and statistical reports (cover debt service, stock and operations) are produced annually (P. 25)
17.2 Extent of consolidation of the government’s cash balances
B
Notes:
Most cash balances are calculated and consolidated daily, but some budgetary funds remain outside the arrangement (P. 25)
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. 25)
18. Effectiveness of payroll controls
C
Notes:
18.1 Degree of integration and reconciliation between personnel records and payroll data.
C
Notes:
Personnel data and payroll data are not directly linked but the payroll is supported by documentation for changes made to personnel records each month and checked against the previous month’s payroll data. However, absence of payroll reconciliations in the National Army is an important concern (P. 31)
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 (P. 31)
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. 31)
18.4 Existence of payroll audits to identify control weaknesses and/or ghost workers.
C
Notes:
Payroll audits have been undertaken within the last 3 years, but not necessarily covering all central government entities (P. 31)
19. Transparency, competition and complaints mechanisms in procurement
B
Notes:
19.1 Transparency, comprehensiveness and competition in the legal and regulatory framework
B
Notes:
Available data on public contract awards shows that more than 50% but less than 75% of the number of contracts above the threshold are awarded on basis of open competition, but the data may not be accurate (P. 31)
19.2 Use of competitive procurement methods
A
Notes:
Other less competitive methods when used are justified in accordance with clear regulatory requirements. (P. 31)
19.3 Public access to complete, reliable and timely procurement information
C
Notes:
A process defined by legislation exists for submitting and addressing procurement complaints, but does not operate in a manner that provides for timely resolution of complaints. (P. 31)
19.4 Existence of an independent administrative procurement complaints system
NU
Notes:
20. Effectiveness of internal controls for non-salary expenditure
B
Notes:
Comprehensive expenditure commitment controls are in place and effectively limit commitments to actual cash availability and approved budget allocations, with minor areas of exception (P. 31)
20.1 Effectiveness of expenditure commitment controls.
B
Notes:
Other internal control rules and procedures incorporate a comprehensive set of controls which are widely understood, but given their recent implementation the risk management and cost effectiveness impacts are still in process of realization (P. 31)
20.2 Comprehensiveness, relevance and understanding of other internal control rules/ procedures
B
Notes:
Compliance with rules for processing and recording transactions is fairly high, but there are still deficiencies in the overall internal control system effectiveness. (P. 31)
20.3 Degree of compliance with rules for processing and recording transactions
B
Notes:
21. Effectiveness of internal audit
C
Notes:
21.1 Coverage and quality of the internal audit function.
C
Notes:
Internal audit is operational for all central government entities, undertakes system reviews, but may not meet recognized professional standards (P. 31)
21.2 Frequency and distribution of reports
C
Notes:
Audit reports for specific reviews are issued regularly and are accessible to the SAI. A fixed schedule applies to aggregate reports, the most important of which are submitted to the supreme audit institution. As is often the case in Latin American frameworks, internal audit reports are not submitted to the ministry of finance (P. 31)
21.3 Extent of management response to internal audit findings.
C
Notes:
Comprehensive action is taken by many managers, but often with delay (P. 31)
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
B
Notes:
Bank reconciliation for all Treasury managed bank accounts takes place at least monthly, within 4 weeks from end of month. (P. 35)
22.2 Regularity of reconciliation and clearance of suspense accounts and advances.
D*
Notes:
No data was available in accessible format to assess periodicity and timeliness of reconciliation and clearance of suspense accounts and advances, and quantify un-cleared balances brought forward(P. 35)
23. Availability of information on resources received by service delivery units
B
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
B
Notes:
Routine data collection systems provide reliable information on all types of resources received by public health care providers (but not by schools) across the country, with information compiled into reports at least annually (P. 35)
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
A
Notes:
Classification of data allows direct comparison to all items of budget estimates. Expenditure is covered at both commitment and payment stages (P. 35)
24.2 Timeliness of the issue of reports
A
Notes:
Reports are prepared monthly, and issued within 4 weeks of end of period (P. 35)
24.3 Quality of information
C
Notes:
There are some concerns about the accuracy of information, which may not always be highlighted in the reports from the executive, but this does not fundamentally undermine their basic usefulness (P. 35)
25. Quality and timeliness of annual financial statements
A
Notes:
25.1 Completeness of the financial statements
A
Notes:
A consolidated government statement is prepared annually and includes full information on revenue, expenditure, assets and liabilities (P. 35)
25.2 Timeliness of submission of the financial statements
A
Notes:
The statement is submitted for external audit within 6 months of the end of the fiscal year. (P. 35)
25.3 Accounting standards used
A
Notes:
National standards are applied for all statements (P. 35)
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:
Central government entities representing at least 75% of total expenditures are audited annually, covering revenue, expenditure and assets/liabilities. A wide range of financial audits are performed and generally adheres to auditing standards, focusing on significant and systemic issues. (P. 37)
26.2 Timeliness of submission of audit reports to legislature.
B
Notes:
Audit reports are submitted to the legislature within 7 months of the end of the period covered (P. 37)
26.3 Evidence of follow up on audit recommendations
B
Notes:
A formal response is made in a timely manner in the form of improvement plans, but implementation of actions is delayed (P. 37)
27. Legislative scrutiny of the annual budget law
C+
Notes:
27.1 Scope of the legislature’s scrutiny.
C
Notes:
The legislature’s review covers details of expenditure and revenue at a stage where detailed proposals have been finalized. The review of fiscal policies, medium term fiscal framework and priorities at prior stages is minimal (P. 19)
27.2 Extent to which the legislature’s procedures are well-established and respected.
B
Notes:
Simple procedures exist for the legislature’s budget review and are respected (P. 19)
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
A
Notes:
The legislature has at least two months to review the budget proposals (P. 19)
27.4 Rules for in-year amendments to the budget without ex-ante approval by the legislature.
C
Notes:
Clear rules for in-year amendments to the budget without ex-ante approval by the legislature exist, but they allow extensive administrative reallocation as well as expansion of total expenditure (P. 19)
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).
B
Notes:
Scrutiny of audit reports is usually completed by the legislature within 6 months from receipt of the reports (P. 37)
28.2 Extent of hearings on key findings undertaken by the legislature.
B
Notes:
In-depth hearings (including follow-up commissions) on key findings take place as a routine, cover fiscal control entities and some other audited entities (P. 37)
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. 38)
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:
