I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
A
Notes:
1.1 Aggregate expenditure outturn
A
Notes:
Variances were less than 5 percent in 2 of the 3 years.
2. Expenditure composition outturn
C+
Notes:
2.1 Expenditure composition outturn by function
C
Notes:
Variance greater than 10 percent in all 3 years
2.2 Expenditure composition outturn by economic type
B
Notes:
Variances were between 5 percent and 10 percent in all 3 years
2.3 Expenditure from contingency reserves
A
Notes:
No expenditure was charged to Contingency
Notes:
3.1 Aggregate revenue outturn
B
Notes:
Actual revenue was between 94 percent and 112 percent of budget in 2 of 3 years
3.2 Revenue composition outturn
C
Notes:
Variances were between 10-15 percent in all 3 years
II. Transparency of public finances
Scores by Dimension
Overall Indicator Score
4. Budget classification
C
Notes:
4.1 Budget classification
C
Notes:
Types of tax revenue not shown in budget submission
Notes:
5.1 Budget documentation
B
Notes:
9 elements were included, including 3 of the 4 basic elements
6. Central government operations outside financial reports
A
Notes:
6.1 Expenditure outside financial reports
A
Notes:
There is no expenditure outside financial reports
6.2 Revenue outside financial reports
A
Notes:
There is no revenue outside financial reports
6.3 Financial reports of extrabudgetary units
NA
Notes:
There are no extrabudgetary units
7. Transfers to subnational governments
A
Notes:
7.1 System for allocating transfers
A
Notes:
Almost all transfers are allocated based on transparent rules based systems.
7.2 Timeliness of information on transfers
A
Notes:
Reliable information is provided several months before the year-end
8. Performance information for service delivery
B
Notes:
8.1 Performance plans for service delivery
B
Notes:
High compliance rate in planning but insufficient focus on outcomes
8.2 Performance achieved for service delivery
B
Notes:
Reporting focused largely on financial results
8.3 Resources received by service delivery units
A
Notes:
Reports encompass resources received by SDUs
8.4 Performance evaluation for service delivery
D
Notes:
Most expenditure programmes not subject to independent evaluation
9. Public access to fiscal information
A
Notes:
9.1 Public access to fiscal information
A
Notes:
All 5 basic elements and 3 out of 4 additional elements accessible to the public
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
C+
Notes:
10.1 Monitoring of public corporations
C
Notes:
Audited financial statements are prepared for some SOEs and financial statements are provided to the Ministry of Finance no more than six months after the end of the financial year
10.2 Monitoring of subnational governments
C
Notes:
Unaudited financial information is published for sub-national governments
10.3 Contingent liabilities and other fiscal risks
B
Notes:
Most but not all potential significant contingent liabilities are reported and published. In addition, the Ministry of Finance annually publishes a report on fiscal risks which is published in the MTEF
11. Public investment management
D
Notes:
11.1 Economic analysis of investment proposals
D
Notes:
Administrative compliance checks were carried out on projects but not economic appraisal.
11.2 Investment project selection
D
Notes:
No objective process for prioritisation of investment projects
11.3 Investment project costing
D
Notes:
Capital costs of major projects for three-year period of MTEF included in budget proposal. However, this may not always include the total capital costs of major projects
11.4 Investment project monitoring
C
Notes:
Information on performance of major investment projects included in annual budget execution report.
12. Public asset management
C
Notes:
12.1 Financial asset monitoring
C
Notes:
There are gaps, for example, advances and receivables; in the coverage of financial asset registers. Information on the annual performance of financial assets is not published.
12.2 Nonfinancial asset monitoring
C
Notes:
There are gaps, machinery and equipment, inventories, valuables, intangible assets; in coverage of non-financial assets. There is some information collected on the usage and age of some non-financial assets
12.3 Transparency of asset disposal
C
Notes:
All the information available is published on transfers and disposals of assets but there are gaps in information set (e.g. original cost, date of acquisition).
Notes:
13.1 Recording and reporting of debt and guarantees
A
Notes:
Systematic and comprehensive recording and reporting of debt management transactions and guarantees
13.2 Approval of debt and guarantees
A
Notes:
Clear legal framework and approval processes for issuance of debt and guarantees
13.3 Debt management strategy
A
Notes:
Three-year debt management strategy with quantitative indicators published annually in MTEF and presented to the National Assembly together with the annual borrowing plan
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
14. Macroeconomic and fiscal forecasting
B
Notes:
14.1 Macroeconomic forecasts
C
Notes:
Macroeconomic forecasts are published but do not include two key macro indicators, interest rates and exchange rate
Notes:
Fiscal forecasts that are published do not include a breakdown of revenue by tax. type
14.3 Macrofiscal sensitivity analysis
A
Notes:
A range of fiscal scenarios based on alternative macro assumptions are published.
Notes:
15.1 Fiscal impact of policy proposals
C
Notes:
Information provided on the costs of individual policy changes are provided for the budget year in the budget proposal
15.2 Fiscal strategy adoption
A
Notes:
Government in MTEF outlines its fiscal strategy and quantitative goals for key fiscal indicators relating to government expenditure and debt for each year in the three-year fiscal planning period.
15.3 Reporting on fiscal outcomes
A
Notes:
Government in MTEF reports on progress made towards previously set goals, any deviations from intended track and intended actions to respond.
16. Medium-term perspective in expenditure budgeting
B
Notes:
16.1 Medium-term expenditure estimates
A
Notes:
MTEF and final Budget proposal provides estimates of expenditure for three-year period by economic, administrative and programme level.
16.2 Medium-term expenditure ceilings
A
Notes:
Ceilings for the three-year fiscal planning period are agreed by the government and are allocated to ministries prior to the preparation of initial budget estimates
16.3 Alignment of strategic plans and medium-term budgets
C
Notes:
While there are several sets of strategic plans, including strategic plans for line ministries , there is inconsistent and partial alignment between strategic plans and the budget
16.4 Consistency of budgets with previous year’s estimates
D
Notes:
Budget documents do not outline consistency of current budget year estimates with previous second year of three-year estimates.
17. Budget preparation process
A
Notes:
Notes:
Ministries provided four weeks to prepare budget submissions in knowledge of both budget methodology and entity ceilings. Submissions are largely made on time.
17.2 Guidance on budget preparation
A
Notes:
Budget circular on ceilings reflects government-wide agreement on spending ceilings for each entity .
17.3 Budget submission to the legislature
A
Notes:
Budget submission consistently provided to National Assembly at least 90 days before start of new financial year.
18. Legislative scrutiny of budgets
D+
Notes:
18.1 Scope of budget scrutiny
D
Notes:
No detail on tax revenue forecasts provided effectively limits revenue estimates scrutiny.
18.2 Legislative procedures for budget scrutiny
C
Notes:
Budget law and law for procedures of national assemble set out requirements for legislative review of budget.
18.3 Timing of budget approval
A
Notes:
All budgets in reference period approved before start of financial year as required by law.
18.4 Rules for budget adjustment by the executive
C
Notes:
Rules permit both administrative reallocation of spending and expansion of total spending if revenue outturns are higher than forecast.
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:
There is complete information on tax rights and obligations and appeal mechanism in place
19.2 Revenue risk management
B
Notes:
Compliance risk is assessed and managed as a priority for large taxpayers
19.3 Revenue audit and investigation
A
Notes:
Audit and investigation are undertaken according to a Compliance Improvement Plan
19.4 Revenue arrears monitoring
D
Notes:
There is a huge stock of aged (more than 12 months) arrears in the last completed fiscal year (2022) which is more than 75 percent of total amount of revenue arrears for the same year
20. Accounting for revenue
A
Notes:
20.1 Information on revenue collections
A
Notes:
There is daily information in TSA about revenue collection
20.2 Transfer of revenue collections
A
Notes:
Revenue is transferred to TSA daily
20.3 Revenue accounts reconciliation
A
Notes:
There is daily reconciliation of revenue payment to the Treasury accounts.
21. Predictability of in-year resource allocation
A
Notes:
21.1 Consolidation of cash balances
A
Notes:
Consolidation of cash balances is daily.
21.2 Cash forecasting and monitoring
A
Notes:
The cash flow forecast is prepared for the year and updated weekly.
21.3 Information on commitment ceilings
B
Notes:
Information on commitment ceilings on quarterly basis.
21.4 Significance of in-year budget adjustments
A
Notes:
There are no significant in-year adjustments. All adjustments are made within the stipulated limit of annual budget appropriations.
22. Expenditure arrears
B+
Notes:
22.1 Stock of expenditure arrears
A
Notes:
There are no expenditure arrears in the period of assessment.
22.2 Expenditure arrears monitoring
B
Notes:
Age is not reported
Notes:
23.1 Integration of payroll and personnel records
B
Notes:
Payroll is reconciled with personnel record every month; the process is manual.
23.2 Management of payroll changes
B
Notes:
The corrections in payroll are immaterial.
23.3 Internal control of payroll
B
Notes:
There is high integrity of data but not full integrity due to manually operated processes
Notes:
There is annual payroll audit where ghost workers are checked.
Notes:
24.1 Procurement monitoring
B
Notes:
There is no evidence of quality control or audit of procurement data.
24.2 Procurement methods
A
Notes:
The total value of contracts awarded through competitive methods in the last FY 2022 represent 83 percent of the total value of procurement contracts
24.3 Public access to procurement information
A
Notes:
There is full access to all procurement data
24.4 Procurement complaints management
A
Notes:
There is an established procurement complaints mechanism meeting all six requirements.
25. Internal controls on nonsalary expenditure
B+
Notes:
25.1 Segregation of duties
B
Notes:
There is no full integration of internal control activities to all duties and functions.
25.2 Effectiveness of expenditure commitment controls
A
Notes:
The rules and procedures of payment enforce level of controls that limit the expenditure commitments to the appropriated budget allocations
25.3 Compliance with payment rules and procedures
B
Notes:
Strict rules are prescribed and applied in the payment. Evidence provided for 75 percent of budget expenditure
Notes:
26.1 Coverage of internal audit
B
Notes:
Internal audit is established in all budget organisations. Only at MoF the function was suspended over the last two years.
26.2 Nature of audits and standards applied
C
Notes:
Focus on transactions and compliance rather than internal control system
26.3 Implementation of internal audits and reporting
A
Notes:
Planned audits are implemented for 75 percent of budget expenditure
26.4 Response to internal audits
C
Notes:
There is management response to audit recommendations for 75 percent of budget expenditure.
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
27. Financial data integrity
B+
Notes:
27.1 Bank account reconciliation
A
Notes:
Daily, real-time reconciliation of government bank balances
Notes:
Promptly cleared and low balances
Notes:
Delays in clearing balances
27.4 Financial data integrity processes
B
Notes:
High level of safeguarding but no specific responsible body
28. In-year budget reports
B+
Notes:
28.1 Coverage and comparability of reports
A
Notes:
Comprehensive reports produced
28.2 Timing of in-year budget reports
B
Notes:
Reports produced within one month of end of period
28.3 Accuracy of in-year budget reports
B
Notes:
Accurate reports but do not include commitments
29. Annual financial reports
B
Notes:
29.1 Completeness of annual financial reports
B
Notes:
Annual financial reports are complete at the Ministry level and exclude only non-financial assets at the State level
29.2 Submission of reports for external audit
B
Notes:
Reports submitted by following 1 May
29.3 Accounting standards
B
Notes:
Consistent reporting based on APSAs which are disclosed.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
C
Notes:
Majority of state expenditures and revenues are audited.
30.2 Submission of audit reports to the legislature
A
Notes:
Audit reports are submitted to the legislature within three months after receipt of financial reports by the Chamber of Audit
30.3 External audit follow-up
B
Notes:
While there are timely and comprehensive responses to audit, there is no systematic follow-up to audit findings.
30.4 Supreme Audit Institution independence
C
Notes:
Significant restrictions exist on Chamber of Audits access to information
31. Legislative scrutiny of audit reports
B
Notes:
31.1 Timing of audit report scrutiny
A
Notes:
Legal framework, which is followed, requires timely scrutiny of audit reports on budget execution report
31.2 Hearings on audit findings
C
Notes:
Hearings on audit findings are selective
31.3 Recommendations on audit by the legislature
C
Notes:
Recommendations on audit are not followed up by legislature.
31.4 Transparency of legislative scrutiny of audit reports
A
Notes:
Hearings are largely undertaken in public, video is available on YouTube, and minutes are published.
