I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
A
Notes:
1.1 Aggregate expenditure outturn
A
Notes:
Aggregate expenditure outturn was between 95% and 105% of the approved aggregate budgeted expenditure in at least two of the last three years.
2. Expenditure composition outturn
D+
Notes:
2.1 Expenditure composition outturn by function
D
Notes:
Variance in expenditure composition by program, administrative or functional classification was more than 15% in two out of the last three fiscal years.
2.2 Expenditure composition outturn by economic type
A
Notes:
Variance in expenditure composition by economic classification was more than 5% in 2019.
2.3 Expenditure from contingency reserves
A
Notes:
Actual expenditure charged to a contingency vote was on average less than 3% of the original budget.
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
D
Notes:
4.1 Budget classification
D
Notes:
Budget formulation and execution are based on every level of administrative, economic,and functional classification using GFS/COFOG standards or a classification that can produce consistent documentation comparable with those standards.
Notes:
5.1 Budget documentation
B
Notes:
Budget documentation fulfills 7 elements, including at least 3 basic elements (1–4).
6. Central government operations outside financial reports
A
Notes:
6.1 Expenditure outside financial reports
A
Notes:
Expenditure outside government financial reports is less than 1% of total BCG expenditure.
6.2 Revenue outside financial reports
A
Notes:
Revenue outside government financial reports is less than 1% of total BCG revenue.
6.3 Financial reports of extrabudgetary units
A
Notes:
Detailed financial reports of all extrabudgetary units are submitted to government annually within three months of the end of the fiscal year.
7. Transfers to subnational governments
D+
Notes:
7.1 System for allocating transfers
D
Notes:
Although the established system for most of transfers is transparent and rule-based, it was not applied in the last completed fiscal year (2019).
7.2 Timeliness of information on transfers
C
Notes:
Information on transfers to municipalities was issued during November (i.e. before the start of next FY) although with substantial delays.
8. Performance information for service delivery
C+
Notes:
8.1 Performance plans for service delivery
A
Notes:
Information is published annually on policy or program objectives, key performance indicators, outputs to be produced, and the outcomes planned for most ministries, disaggregated by program or function.
8.2 Performance achieved for service delivery
D
Notes:
Performance is less than required for a C score.
8.3 Resources received by service delivery units
A
Notes:
Information on resources received by frontline service delivery units is collected and recorded for at least two large ministries, disaggregated by source of funds. A report compiling the information is prepared at least annually.
8.4 Performance evaluation for service delivery
D
Notes:
Performance is less than required for a C score.
9. Public access to fiscal information
D
Notes:
9.1 Public access to fiscal information
D
Notes:
Three out of five basic elements met.
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
C+
Notes:
10.1 Monitoring of public corporations
B
Notes:
Audited annual financial statements are published for most public corporations within six months of the end of the fiscal year.
10.2 Monitoring of subnational governments
C
Notes:
Unaudited reports on the financial position and performance of the majority of subnational governments are published at least annually within nine months of the end of the fiscal year.
10.3 Contingent liabilities and other fiscal risks
C
Notes:
Central government entities and agencies quantify some significant contingent liabilities in their financial reports.
11. Public investment management
D+
Notes:
11.1 Economic analysis of investment proposals
C
Notes:
Economic analyses are conducted to assess some major investment projects.
11.2 Investment project selection
D
Notes:
In 2019 there was not one unified and functional mechanism for prioritizing public investment projects based on standardized and publicized criteria
11.3 Investment project costing
D
Notes:
Performance is less than required for a C score.
11.4 Investment project monitoring
C
Notes:
The total cost and physical progress of major investment projects are monitored by the implementing government unit. Information on implementation of major investment projects is prepared annually.
12. Public asset management
D+
Notes:
12.1 Financial asset monitoring
C
Notes:
The government maintains records of its holdings in major categories of financial assets, but the consolidated information on the performance of the portfolio of financial assets is not available.
12.2 Nonfinancial asset monitoring
D
Notes:
Based on available information, it cannot be evidenced that the registers of all material assets are complete and current.
12.3 Transparency of asset disposal
D
Notes:
Procedures and rules for the transfer or disposal of nonfinancial assets are established. Partial information on transfers and disposals is included in budget documents and financial reports but does not include all the information required under the PEFA Framework.
Notes:
13.1 Recording and reporting of debt and guarantees
A
Notes:
Domestic and foreign debt and guaranteed debt records are complete, accurate, updated, and reconciled monthly. Comprehensive management and statistical reports covering debt service, stock, and operations are produced quarterly.
13.2 Approval of debt and guarantees
A
Notes:
Primary legislation grants authorization to borrow, issue new debt, and issue loan guarantees on behalf of the central government to a single responsible debt management entity.
13.3 Debt management strategy
A
Notes:
A current medium-term debt management strategy covering existing and projected government debt, with a horizon of at least three years, is publicly reported.
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 government prepares forecasts of the main fiscal indicators, including revenues (by type), aggregate expenditure, and the budget balance, for the budget year and two following fiscal years.
14.3 Macrofiscal sensitivity analysis
A
Notes:
The government prepares a range of fiscal forecast scenarios based on alternative macroeconomic assumptions, and these scenarios are published, together with its central forecast.
Notes:
15.1 Fiscal impact of policy proposals
B
Notes:
The government prepares estimates of the fiscal impact of all proposed changes in revenue and expenditure policy for the budget year and the following two fiscal years.
15.2 Fiscal strategy adoption
A
Notes:
The government has adopted, submitted to the legislature, and published a current fiscal strategy that includes explicit time-based quantitative fiscal goals and targets together with qualitative objectives for at least the budget year and the following two fiscal years.
15.3 Reporting on fiscal outcomes
C
Notes:
The government prepares an internal report on the progress made against its fiscal strategy. Such a report has been prepared for the last completed fiscal year.
16. Medium-term perspective in expenditure budgeting
D+
Notes:
16.1 Medium-term expenditure estimates
B
Notes:
The annual budget presents estimates of expenditure for the budget year and the two following fiscal years allocated by administrative and economic 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 issued before the first budget circular is issued, but are not approved by the government.
16.3 Alignment of strategic plans and medium-term budgets
C
Notes:
Medium-term strategic plans are prepared for some ministries. Some expenditure policy proposals in the annual budget estimates align with the strategic plans.
16.4 Consistency of budgets with previous year’s estimates
D
Notes:
Performance is less than required for a C score.
17. Budget preparation process
B
Notes:
Notes:
A clear annual budget calendar exists and is largely adhered to. The calendar allows all budgetary units about nine weeks from receipt of the budget circular to complete their draft budget.
17.2 Guidance on budget preparation
C
Notes:
A budget circular or circulars are issued to budgetary units, including ceilings for administrative or functional areas.
17.3 Budget submission to the legislature
C
Notes:
The executive has submitted the annual budget proposal to the legislature at least one month before the start of the fiscal year in two of the last three years.
18. Legislative scrutiny of budgets
B+
Notes:
18.1 Scope of budget scrutiny
A
Notes:
The legislature’s review covers fiscal policies, medium-term fiscal forecasts, and medium-term priorities as well as details of expenditure and revenue.
18.2 Legislative procedures for budget scrutiny
B
Notes:
The legislature’s procedures to review budget proposals are approved by the legislature in advance of budget hearings and are adhered to. The procedures include internal organizational arrangements such as legislature committees, technical support, and negotiation procedures.
18.3 Timing of budget approval
A
Notes:
The legislature has approved the annual budget before the start of the year in each of the last three fiscal years.
18.4 Rules for budget adjustment by the executive
A
Notes:
Clear rules exist for in-year budget adjustments by the executive. The rules set strict limits on the extent and nature of amendments and are adhered to in all instances.
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:
Entities collecting most revenues use multiple channels to provide payers with easy access to comprehensive and up-to-date information on the main revenue obligation areas and on rights including, as a minimum, redress processes and procedures.
19.2 Revenue risk management
A
Notes:
Entities collecting most revenues use a comprehensive, structured and systematic approach for assessing and prioritizing compliance risks for all categories of revenue and, as a minimum for their large and medium revenue payers.
19.3 Revenue audit and investigation
C
Notes:
Entities collecting the majority of government revenue undertake audits and fraud investigations using a compliance improvement plan and complete the majority of planned audits and investigations.
19.4 Revenue arrears monitoring
D
Notes:
Performance is less than required for a C score.
20. Accounting for revenue
A
Notes:
20.1 Information on revenue collections
A
Notes:
A central agency obtains revenue data at least monthly from entities collecting all central government revenue.This information is broken down by revenue type and is consolidated into a report.
20.2 Transfer of revenue collections
A
Notes:
Entities collecting most central government revenue transfer the collections directly into accounts controlled by the Treasury, or transfer the collections daily to the Treasury and other designated agencies.
20.3 Revenue accounts reconciliation
A
Notes:
Entities collecting most central government revenue undertake complete reconciliation of assessments, collections, arrears, and transfers to Treasury and other designated agencies at least quarterly within four weeks of the end of quarter.
21. Predictability of in-year resource allocation
B+
Notes:
21.1 Consolidation of cash balances
A
Notes:
All bank and cash balances are consolidated on a daily basis.
21.2 Cash forecasting and monitoring
A
Notes:
A cash flow forecast is prepared for the fiscal year and is updated monthly on the basis of actual cash inflows and outflows.
21.3 Information on commitment ceilings
C
Notes:
Budgetary units are provided reliable information on commitment ceilings at least one month in advance.
21.4 Significance of in-year budget adjustments
A
Notes:
Significant in-year adjustments to budget allocations take place no more than twice in a year and are done in a transparent and predictable way.
Notes:
22.1 Stock of expenditure arrears
D*
Notes:
Insufficient information available.
22.2 Expenditure arrears monitoring
D*
Notes:
Information on arrears’ age and composition cannot be ascertained.
Notes:
23.1 Integration of payroll and personnel records
B
Notes:
The payroll is supported by full documentation for all changes made to personnel records each month and checked against the previous month’s payroll data. Staff hiring and promotion is controlled by a list of approved staff positions.
23.2 Management of payroll changes
B
Notes:
Required changes to the personnel records and payroll are updated at least monthly, generally in time for the following month’s payments but no reliable data was available to prove corrections in a maximum of 3% of salary payments.
23.3 Internal control of payroll
A
Notes:
Authority to change records and payroll is restricted, results in an audit trail, and is adequate to ensure full integrity of data.
Notes:
Partial payroll audits or staff surveys have been undertaken within the last three completed fiscal years.
Notes:
24.1 Procurement monitoring
A
Notes:
Databases or records are maintained for contracts including data on what has been procured, value of procurement and who has been awarded contracts. The data are accurate and complete for all procurement methods for goods, services and works.
24.2 Procurement methods
A
Notes:
The total value of contracts awarded through competitive methods in the last completed fiscal year represents 80% or more of total value of contracts.
24.3 Public access to procurement information
A
Notes:
Every key procurement information element is complete and reliable for government units representing all procurement operations and is made available to the public in a timely manner.
24.4 Procurement complaints management
B
Notes:
The procurement complaint system meets criterion 1 (complaints are reviewed by a body which is not involved in any capacity in procurement transactions or in the process leading to contract award decisions), and three of the other five criteria.
25. Internal controls on nonsalary expenditure
A
Notes:
25.1 Segregation of duties
A
Notes:
Appropriate segregation of duties is prescribed throughout the expenditure process. Responsibilities are clearly laid down.
25.2 Effectiveness of expenditure commitment controls
A
Notes:
Comprehensive expenditure commitment controls are in place and effectively limit commitments to projected cash availability and approved budget allocations.
25.3 Compliance with payment rules and procedures
A
Notes:
All payments are compliant with regular payment procedures. All exceptions are properly authorized in advance and justified.
Notes:
26.1 Coverage of internal audit
A
Notes:
Internal audit is operational for all central government entities.
26.2 Nature of audits and standards applied
A
Notes:
Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls. A quality assurance process is in place within the internal audit function and audit activities meet professional standards, including focus on high risk areas.
26.3 Implementation of internal audits and reporting
B
Notes:
Annual audit programs exist. Most programmed audits are completed, as evidenced by the distribution of their reports to the appropriate parties.
26.4 Response to internal audits
B
Notes:
Management provides a partial response to audit recommendations for all entities audited within twelve months of the report being produced.
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 for all active central government bank accounts takes place at least monthly, usually within 4 weeks from the end of each month.
Notes:
Notes:
Reconciliation of advance accounts takes place at least monthly, within a month from the end of each month. All advance accounts are cleared in a timely way.
27.4 Financial data integrity processes
A
Notes:
Access and changes to records is restricted and recorded, and results in an audit trail. There is an operational body, unit or team in charge of verifying financial data integrity.
28. In-year budget reports
C+
Notes:
28.1 Coverage and comparability of reports
B
Notes:
Coverage and classification of data allows direct comparison to the original budget with partial aggregation. Expenditures made from transfers to de-concentrated units within central government are included in the reports.
28.2 Timing of in-year budget reports
C
Notes:
Budget execution reports are prepared quarterly (possibly excluding first quarter), and issued within 8 weeks from the end of each quarter.
28.3 Accuracy of in-year budget reports
B
Notes:
There may be concerns regarding data accuracy. Data issues are highlighted in the report and the data is consistent and useful for analysis of budget execution. An analysis of the budget execution is provided on at least a half-yearly basis. Expenditure is captured at least at payment stage.
29. Annual financial reports
D+
Notes:
29.1 Completeness of annual financial reports
B
Notes:
Financial reports for budgetary central government are prepared annually and are comparable with the approved budget.They contain information on at least revenue, expenditure, financial assets, financial liabilities, guarantees, and long-term obligations.
29.2 Submission of reports for external audit
C
Notes:
Financial statements are available for audit within 7 months.
29.3 Accounting standards
D
Notes:
Performance is less than required for a C score.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
A
Notes:
Financial reports of central government entities representing all of total expenditures and revenues of the CG entities have been audited, using ISSAIs during the last three completed fiscal years. The audits have highlighted relevant significant and systemic issues.
30.2 Submission of audit reports to the legislature
B
Notes:
Audit reports were submitted within six months from the date of submission and the throughout has progressively improved over the years.
30.3 External audit follow-up
A
Notes:
There is clear evidence of effective and timely follow-up by the executive or the audited entity on audits for which follow-up was expected, during the last three completed fiscal years.
30.4 Supreme Audit Institution independence
A
Notes:
The SAI operates independently from the executive with respect to procedures for appointment and removal of the Head of the SAI, the planning of audit engagements, arrangements for publicizing reports, and the approval and execution of the SAI’s budget.
31. Legislative scrutiny of audit reports
B+
Notes:
31.1 Timing of audit report scrutiny
A
Notes:
In 2019, scrutiny of the audit reports received to date was completed within 3 months.
31.2 Hearings on audit findings
C
Notes:
In-depth hearings on key findings of audit reports take place occasionally and with ministry of finance officials only.
31.3 Recommendations on audit by the legislature
B
Notes:
The legislature reinforced SAI recommendations through its conclusions and followed up in separate meetings with the SAI and the MoF in 2019.
31.4 Transparency of legislative scrutiny of audit reports
A
Notes:
All hearings are conducted in public. Committee sessions are streamed and recorded. The reports are published on an official website.
