I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
D
Notes:
1.1 Aggregate expenditure outturn
D*
Notes:
As the budget and expenditure data on loans and grants is not available, the aggregate expenditure outturn couldn’t be computed.
2. Expenditure composition outturn
D
Notes:
2.1 Expenditure composition outturn by function
D*
Notes:
As the budget and expenditure data on loans and grants is not available, the expenditure composition outturn by administrative classification couldn’t be computed.
2.2 Expenditure composition outturn by economic type
D*
Notes:
As the budget and expenditure data on loans and grants is not available, the expenditure composition outturn by economic type couldn’t be computed.
2.3 Expenditure from contingency reserves
D*
Notes:
As the budget and expenditure data on loans and grants is not available, the expenditure from contingency reserves couldn’t be computed.
Notes:
3.1 Aggregate revenue outturn
A
Notes:
Actual revenue was between 97% and 106% of budget revenue in all last three years (98% in FY 2018, 99.1% FY 2019 and 100.8% in FY 2020).
3.2 Revenue composition outturn
D
Notes:
Variance in revenue composition was more than 15% in two of the last three years (22.3% in FY 2018, 14% in FY 2019 and 25.2% in FY 2020).
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 2001 standards in 2018 and GFSM 2014 standards from 2019-2020.
Notes:
5.1 Budget documentation
B
Notes:
Budget documentation fulfils 9 elements, including all 4 basic elements.
6. Central government operations outside financial reports
D
Notes:
6.1 Expenditure outside financial reports
D
Notes:
Table 6.1 below provides an analysis of central government operations (expenditures) outside financial reports. The data shows that 13.6% of central government expenditure is outside financial reports.
6.2 Revenue outside financial reports
D
Notes:
Data obtained from ASSL (refer to Table 6.2) shows that 15.8% of central government revenues are outside financial reports.
6.3 Financial reports of extrabudgetary units
D
Notes:
All extrabudgetary units including social security fund submitted their detailed annual financial reports to government (and by extension ASSL) within twelve months after the end of the fiscal year 2020.
7. Transfers to subnational governments
A
Notes:
7.1 System for allocating transfers
A
Notes:
The horizontal allocation of all transfers to subnational governments from central government is determined by transparent, rule-based systems.
7.2 Timeliness of information on transfers
A
Notes:
The process by which subnational governments receive information on their annual transfers is managed through the regular budget calendar, which is generally adhered to and provides clear and sufficiently detailed information for subnational governments to allow at least six weeks to complete their budget planning on time.
8. Performance information for service delivery
D
Notes:
8.1 Performance plans for service delivery
D
Notes:
Information is presented annually on the activities to be performed under the policies or programs for the majority of ministries OR a framework of performance indicators relating to the outputs or outcomes of the majority of ministries is in place. The information is not yet published.
8.2 Performance achieved for service delivery
D
Notes:
Information is not published annually on performance achieved in terms of activities performed for the majority of ministries.
8.3 Resources received by service delivery units
D
Notes:
Information on resources received by front-line service delivery units is not collected and recorded annually into a report for at least one large ministry. A survey has been said to be carried out in one of the last three years provides estimates of the resources received by service delivery units for at least one large ministry, but evidence of the survey has not been provided.
8.4 Performance evaluation for service delivery
C
Notes:
Evaluations of the efficiency and effectiveness of service delivery have been carried out and published for some ministries at least once within the last three years.
9. Public access to fiscal information
D
Notes:
9.1 Public access to fiscal information
D
Notes:
The government makes available to the public three of the five basic elements and three additional elements in accordance with the specified timeframe
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
D+
Notes:
10.1 Monitoring of public corporations
D
Notes:
Only three SoEs representing 53.8% by value (refer to Table 10.1 below) of those with 2020 reports submitted their annual financial statements to GoSL and ASSL within nine months after the end of FY2020 (in fact submission is within four months).
10.2 Monitoring of subnational governments
C
Notes:
All local councils submit their annual financial statements to the government and external auditors within five months after the end of the fiscal year. The audited reports are however not published. Also, the government does not prepare a consolidated report on the financial position of all local councils.
10.3 Contingent liabilities and other fiscal risks
D
Notes:
The government quantifies contingent liabilities but it is unclear the size of all contingent liabilities arising out of central government operations. Contingent liabilities as at 31st December 2020 amounted to Le8,564 billion. This is reported in the annual financial statements.
11. Public investment management
D+
Notes:
11.1 Economic analysis of investment proposals
D
Notes:
There is no public investment management guideline or standard manual. The current practice is that MDAs prepare a project profile which merely states the name and purpose of the project, cost and source of funding, intended beneficiaries, and a brief description of the project. There is no economic analysis of government investment project.
11.2 Investment project selection
C
Notes:
Presently, there is no standard criteria or guideline for project selection.
11.3 Investment project costing
D
Notes:
The public investment programme (PIP) is a three-year rolling programme. It highlights capital cost of the project to be funded for the budget year and capital cost estimates for the two outer years. However, it does not include projections of the total capital cost of the investment project nor the associated recurrent cost.
11.4 Investment project monitoring
C
Notes:
NaMED undertakes field visits to carry out physical project inspection. It also monitors the financial progress of investment projects by critically analysing the physical completion rate against payments made, following which it prepares a report on project implementation at least annually.
12. Public asset management
C+
Notes:
12.1 Financial asset monitoring
C
Notes:
GoSL maintains a record of its cash/bank balances. There is also a list of government interest in SoEs indicating percentage ownership but with no information on the number of shares and corresponding value.
12.2 Nonfinancial asset monitoring
D
Notes:
MDAs sampled in this assessment (ministries of education – basic and higher, health, mines, finance, public works) maintain a fixed asset listing but not always updated. Information contained in the asset listing include name of asset, identification number and status/condition.
12.3 Transparency of asset disposal
A
Notes:
The legal and regulatory framework for the disposal and transfer of assets (financial and non-financial) are well established. There is also provision for parliament to be notified. As evidenced in the FY2020 annual financial statements, proceeds from sale of government assets were paid in the consolidated fund and reported. The reports were submitted to parliament.
Notes:
13.1 Recording and reporting of debt and guarantees
C
Notes:
Whilst 36% of central government is reconciled monthly, the remaining 64% is reconciled annually.
13.2 Approval of debt and guarantees
A
Notes:
As enshrined in Section (2) of the Public Debt Management Act, 2011, the Minister of Finance has the sole authority to borrow and approve guarantees on behalf of the Government. Domestic and external borrowings are done in line with objective of Pubic Debt Management Strategy which provide procedures and guidelines on how to borrow, issue debt and undertake debt-related transactions.
13.3 Debt management strategy
A
Notes:
The Government has developed a current medium-term debt management strategy; this has been published.
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
14. Macroeconomic and fiscal forecasting
C+
Notes:
14.1 Macroeconomic forecasts
D
Notes:
The government prepares forecasts of key macroeconomic indicators for the budget year and the two following fiscal years. However, the forecast on interest rates, such as the Treasury bill rate, only mentions the direction of movement, not the actual rates.
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
C
Notes:
The macro-fiscal forecasts prepared by the government include a qualitative assessment of the impact of alternative macroeconomic assumptions.
Notes:
15.1 Fiscal impact of policy proposals
D
Notes:
The government does not prepare estimates of the fiscal impact of all proposed changes in revenue and expenditure policy for the budget year.
15.2 Fiscal strategy adoption
C
Notes:
For FY 2020, the FSS stated the fiscal policy and quantitative targets for 2020, though not for the following two years.
15.3 Reporting on fiscal outcomes
B
Notes:
The FSS submitted to the legislature with the annual budget describes progress made against the fiscal strategy and provides an explanation of the reasons for any deviation from the objectives and targets set. No action plan by government to address the deviations.
16. Medium-term perspective in expenditure budgeting
D+
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. The disaggregation by economic type is at the 2-digit GFS 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 were not approved by government before the issuance of the first budget circular.
16.3 Alignment of strategic plans and medium-term budgets
D
Notes:
Medium-term strategic plans are prepared for 22% 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
D
Notes:
The budget documents do not provide an explanation of the changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current medium-term budget at the aggregate level.
17. Budget preparation process
C
Notes:
Notes:
A clear annual budget calendar exists, is generally adhered to and allows budgetary units only three weeks from receipt of the budget circular to meaningfully complete their detailed estimates on time.
17.2 Guidance on budget preparation
C
Notes:
A budget circular, or circulars, is issued to budgetary units, including ceilings for administrative or functional areas. Total budget expenditure is covered for the full fiscal year. The budget estimates are reviewed and approved by Cabinet after they have been completed in every detail by budgetary units.
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 all the last three years.
18. Legislative scrutiny of budgets
C+
Notes:
18.1 Scope of budget scrutiny
B
Notes:
The legislature’s review for FY2020, covered fiscal policies and aggregates for the coming year as well as details of expenditure and revenue.
18.2 Legislative procedures for budget scrutiny
A
Notes:
The legislature’s procedures to review budget proposals for FY2020 were approved by the legislature in advance of budget hearings and are respected. The procedures include arrangements for public consultation and internal organizational arrangements, such as specialized review 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
C
Notes:
Clear rules exist but they allow extensive administrative reallocation as well as expansion of total expenditure.
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:
NRA collects 83% of central government revenues. It uses multiple channels such as internet, social media, and electronic platforms (TV) for information dissemination.
19.2 Revenue risk management
C
Notes:
There is no overall risk management strategy for NRA. Customs Department however has a departmental risk management strategy. Methods/procedures used for prioritising and selecting risk is partially structured and systematic.
19.3 Revenue audit and investigation
C
Notes:
Audit and fraud investigations are conducted in line with documented compliance improvement plan. As shown in Table 19.2 below, 83.3% o planned audits and fraud investigations were completed in FY2020.
19.4 Revenue arrears monitoring
B
Notes:
Revenue arrears are not age-profiled. The stock of revenue arrears represents 5.19% of total revenue collections.
20. Accounting for revenue
C+
Notes:
20.1 Information on revenue collections
B
Notes:
The largest domestic revenue collection agency (NRA) provides at least monthly revenue reports to MoF with revenue information broken down according to type.
20.2 Transfer of revenue collections
A
Notes:
The National Revenue Authority (collecting 83% of central government domestic revenue) transfers all collections to the Treasury within 24 hours.
20.3 Revenue accounts reconciliation
C
Notes:
Reconciliation occurs quarterly between the NRA transit accounts and the Accountant General’s Department treasury accounts, comparing actual collections at the partner commercial banks and the actual revenues transferred into the Consolidated Fund. There is no complete reconciliation of revenue assessed, collections, transfers and arrears.
21. Predictability of in-year resource allocation
C
Notes:
21.1 Consolidation of cash balances
C
Notes:
As shown in Table 21.1 below, all bank/cash balances are consolidated on monthly basis. Treasury-managed balances (representing 3.7%) are consolidated daily.
21.2 Cash forecasting and monitoring
A
Notes:
The cashflow forecast is prepared annually, broken down quarterly and further disaggregated into weekly forecasts and updated based on actual inflows and outflows of cash on a weekly basis – this has been the case since 2018, and also applicable in 2019 and 2020.
21.3 Information on commitment ceilings
D
Notes:
Once parliament passages the appropriation bill into law, the Minister of Finance issues quarterly expenditure commitment ceilings to all budget institutions. That said, the expenditure commitment ceilings are not reliable.
21.4 Significance of in-year budget adjustments
D
Notes:
Virements (budget adjustments without the need for parliamentary approval) are very frequent and not transparent.
22. Expenditure arrears
D+
Notes:
22.1 Stock of expenditure arrears
D
Notes:
The stock of expenditure arrears was more than 10% of total expenditure in the last three completed fiscal years. Actual percentages were 67%, 60%, and 30% in FYs 2018, 2019, and 2020 respectively.
22.2 Expenditure arrears monitoring
B
Notes:
The data on stock and composition of expenditure arrears is generated on a continuously basis after every transaction, with complete data produced quarterly within eight weeks after the end of the previous quarter. However, the age profile of arrears is not generated.
Notes:
23.1 Integration of payroll and personnel records
B
Notes:
There is no directly linkage between payroll and personnel records. 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
A
Notes:
Required changes to the personnel records and payroll are updated at least monthly, generally in time for the following month’s payments. Retroactive adjustments are rare. If reliable data exists, it shows corrections in a maximum of 3% of salary payments. Available data suggests 1.5% retroactive adjustments.
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:
A payroll audit covering all central government entities has been conducted in 2018.
Notes:
24.1 Procurement monitoring
D
Notes:
The practice is that a complete set of procurement statistics is produced annually, published but with significant delay. Nevertheless, procurement plans, bid opportunities and contract awards are published on NPPA website individually and timely by MDAs. As a complete and accurate database of procurement activities for FY2020 is not available, the score for this dimension is “D”.
24.2 Procurement methods
D
Notes:
As audited data for FY2020 has not been provided, this dimension is rated D.
24.3 Public access to procurement information
B
Notes:
At least five out of the six elements of ‘public access to procurement information are met according to PEFA standards.
24.4 Procurement complaints management
B
Notes:
As shown in Table 24.4 below, the procurement complaints management system meets four out of the six PEFA elements. The criteria met are (i), (iii), (iv), and (vi).
25. Internal controls on nonsalary expenditure
B
Notes:
25.1 Segregation of duties
A
Notes:
Segregation of duties are appropriately prescribed in PFM laws, regulations, manuals and throughout the expenditure payment architecture. As at the time of assessment, the PFM Act 2016, PFM Regulations 2018 and the NPPA Act 2016 apply to all central government institutions including budgetary units, extra-budgetary units and social security fund.
25.2 Effectiveness of expenditure commitment controls
C
Notes:
The present IFMIS expenditure commitment architecture for budgetary units as well as separate financial management systems used for extra-budgetary units do not limit commitment to projected cash availability; it however limits commitments to approved quarterly expenditure ceilings/warrants issued by MoF – therefore, expenditure commitment control procedures exist but they are partial. The continuous use of Financial Secretary letters (representing about 0.4% of total central government expenditure) for payment of “priority expenses”, processed outside IFMIS at the time of payment transaction (and later posted ex-ante) defeats the purpose of effective expenditure control framework.
25.3 Compliance with payment rules and procedures
C
Notes:
Expenditure payments are generally compliant with regular payment rules and procedures. There are payment exceptions which are properly sanctioned (example: Financial Secretary Letters) but processed ex-post within IFMIS. As shown in Table 25.1 below, quantified audit findings represent 15.4% of total GoSL expenditure for FY2020.
Notes:
26.1 Coverage of internal audit
B
Notes:
The average coverage of internal audit is at 81.7% by value of total central government expenditures and revenues as at the time of assessment.
26.2 Nature of audits and standards applied
B
Notes:
Based on training and capacity building for public sector internal auditors, internal audit activities now focus on evaluation of effectiveness of internal controls to ascertain whether they are adequate or not.
26.3 Implementation of internal audits and reporting
C
Notes:
Annual audit work plans are produced. Based on data for FY2020, 57.5% of planned audits were completed. There is evidence of production of quarterly internal audit reports with copies to audited entity and MoF.
26.4 Response to internal audits
D
Notes:
Management response to audit recommendations is below 50% (21% in FY2018, 29% in FY2019, and 21% in FY2020).
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
27. Financial data integrity
B+
Notes:
27.1 Bank account reconciliation
B
Notes:
There are 230 budgeted central government bank accounts. All 85 bank accounts managed by the treasury are fully reconciled each month within a month but there is also daily reconciliation since the treasury has a direct electronic access to bank statements from Bank of Sierra Leone. The remaining 145 bank accounts held and managed directly by the budget institutions are reconciled monthly within four weeks after the end of the previous month.
Notes:
This dimension is not applicable as there are no suspense accounts.
Notes:
This dimension is not applicable as there are no advance accounts.
27.4 Financial data integrity processes
A
Notes:
All transaction recordings and changes within the IFMIS system result in audit trail. Entry access to IFMIS is password-protected and restricted to specific functions that each user is assigned to. Since 2019, a payroll quality assurance unit as well as a monitoring and evaluation unit have been created to check payroll and financial data integrity respectively.
28. In-year budget reports
D+
Notes:
28.1 Coverage and comparability of reports
C
Notes:
The reports show the actual revenues and expenditure directly compared with the originally approved budgeted income and expenditure for the main administrative headings. Revenues and expenditures are also reported in aggregates using only the economic classification. The report does not show expenditures made from transfers to de-concentrated government units.
28.2 Timing of in-year budget reports
D
Notes:
For FY 2020, quarter 1 report was not published, quarter 2 was published in October 2020, quarter 3 was published in November 2020, and quarter 4 was not published. The frequency of publication is irregular.
28.3 Accuracy of in-year budget reports
C
Notes:
Expenditures are recorded at payment stage only. Commitment reports can be generated from the Freebalance IFMIS system but these are not disclosed in the quarterly in-year budget execution reports. Though data concerns exist, they are not highlighted.
29. Annual financial reports
C+
Notes:
29.1 Completeness of annual financial reports
B
Notes:
As indicated in Table 29.1 below, the AFS for the last completed fiscal year 2020 contain information on revenues, expenditure, financial assets, financial liabilities, guarantees, and long-term obligations. The statements however are not supported by a reconciled cash flow statement.
29.2 Submission of reports for external audit
A
Notes:
The consolidated annual financial statements of central government consolidated fund for FY2020 were submitted to Audit Service Sierra Leone on 29th March 2021, within three months after the end of the fiscal year.
29.3 Accounting standards
C
Notes:
There are no national standards but the consolidated annual financial statements are prepared in accordance with Section 83 of the PFM Act 2016 – IPSAS Cash has been adopted by Government and consistently disclosed within the last three years 2018-2020, with some gaps in accounting standards but not disclosed.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
B
Notes:
Audit coverage was 91.3% and 85% of all central government (budgetary extra-budgetary units and sub-vented agencies) revenues and expenditures respectively in 2018, 76.7% of revenues and 75.1% of expenditures in 2019, and 75.1% of revenues and 81.1% of expenditures in 2020. Audits are carried out according to INTOSAI audit standards. The audit reports highlight material issues as well as weaknesses in systems and internal controls.
30.2 Submission of audit reports to the legislature
C
Notes:
The Auditor General submitted the audit report of the consolidated fund for FYs 2018-2020, including FY2017 within nine months from date of receipt of the annual financial statements from AGD/MoF.
30.3 External audit follow-up
C
Notes:
In the last three completed years under review, the audit reports also include official/formal responses on audit findings by the audited entity. However, the formal responses are not comprehensive as they fail to provide an action plan or road map for implementation of remedial actions.
30.4 Supreme Audit Institution independence
D
Notes:
ASSL has administrative independence since it operates separately from the executive. The Auditor General is appointed by the President subject to legislative approval. The staff of ASSL are not public servants. It has unrestricted access to public records, freedom to decide on its audit work, freedom to publish its audit findings, as well as right to question public officials.
31. Legislative scrutiny of audit reports
D+
Notes:
31.1 Timing of audit report scrutiny
D
Notes:
As shown in Table 31.1 below, delays of up to 17 months were encountered for FY2018 audit reports. Review of 2019 audit report has been completed but not yet tabled to the plenary for consideration and adoption.
31.2 Hearings on audit findings
C
Notes:
In-depth hearings cover all ‘class A’ MDAs (risky MDAs which represent 54% of total central government budget) with adverse or qualified audit opinions with the presence of senior staff of audited entity and ministry of finance officials. Class ‘B’ (less risky MDAs) are not always covered – coverage stands at less than 20% by value.
31.3 Recommendations on audit by the legislature
C
Notes:
The Public Accounts Committee issues recommendations to be implemented by the executive after scrutiny of external audit reports. However, PAC has no systematic framework to follow up on its recommendations.
31.4 Transparency of legislative scrutiny of audit reports
D
Notes:
Within the last three completed fiscal years of this assessment coverage, the hearings of Public Accounts Committee (PAC) were held in public.