Albania Fier Municipality 2017

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Actual expenditure was between 64% and 82% of budget in all three years.

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The variance was less than 15% in only one of the three years.

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The variances were more than 15% in all three years.

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The average amount charged to contingency was 0.67% of total expenditure in 2013-15.

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Own source revenue was less than 92% of budget in all three years 2013-15. Despite the facts that data for 2013 - 2014 represent the pre-TAR municipality and that 2015 data is not completely comparable due to TAR, the differences are so significant that a score can be assigned with confidence.

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Variance in revenue composition exceeded 15% in all three years 2013-15.

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Scoring Method M1. The 2015 budget classifications and Chart of Accounts are based on economic and administrative classification at the GFS standard 3- digit level, although consistent comparisons between budget and out-turn require additional efforts.

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Budget documentation fulfils 9 elements, including all four basic elements

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There is no expenditure controlled by the municipality which is not fully covered in financial repo

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There is no revenue accruing to Fier which is not fully covered in financial reports.

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There are no extra-budgetary units

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Since there are no government units subordinate to the city of Fier, this Indicator is Not Applicable

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No plans are published at any frequency about the levels of service to be provided.

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Reporting of service levels achieved against targets is not yet established

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Reports have been produced about the resources received by individual SDUs.

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No evaluations have been produced by internal or external auditors, or by other independent bodies

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Only one out of the five applicable basic elements are satisfied.

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The water utility has submitted audited annual financial reports within 6 months of year-end.

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Not applicable at municipal level.

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Fier has not guaranteed any borrowing by subordinate institutions, or participated in any PPP operations.

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Projects are put forward to central government taking into account some analysis of the costs and the likely beneficiaries.

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Prior to their inclusion in the budget, some of the major investment projects are prioritized by a central entity. Most projects are selected by central government through the RDF.

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Decisions on project implementation are generally taken after municipal budgets have been set, with no information in budget documentation about the total capital costs of projects.

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Project implementation is regularly monitored by the Public Works Directorate, but the reports are not published.

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Data in the unpublished financial statements about revenue arrears is very uncertain.

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There is a register of fixed assets, but it is not published.

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There are procedures regulating asset disposals, and reports to the council contain information on disposals.

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Fier has not contracted any loans.

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All municipal borrowing is fully controlled by MoF.

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Excluded by terms of reference

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Excluded by the terms of reference for the assessment.

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The city administration prepares forecasts of fiscal indicators, including underlying assumptions, revenues (by type), aggregate expenditure, and the budget balance, for the budget year and two following fiscal years. These projections have been submitted to the Council in each of the last three years and published.

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As 14.1

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MTBF includes estimates of revenue and expenditure, taking account of any changes in policy. But the coverage is incomple

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Balanced budgets represent a kind of fiscal strategy. But there are no qualitative objectives associated with it.

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No explanations have been given for differences between one year’s MTBF and that for the following year.

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Revenue and expenditure projections for the following three years based on administrative and economic classifications are submitted to the Council.

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Ceilings for each of the three next years are issued to each administrative unit at the start of the MTBF process.

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The unpredictability of investment financing precludes the preparation of strategic plans which can be executed over a specified time period.

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There has as yet been no opportunity to explain changes from a previous year’s MTBF since the 2015 municipal reorganisation.

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There is a clear budget calendar, but administrative units have less than four weeks to prepare their final submiss

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Expenditure ceilings are issued to administrative units at each stage of the MTBF and budget preparation process

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For each of the 2014-16 budgets proposals have been sent to the Council one week before the plenary session which approved them.

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The Council considers the MTBF before the budget is submitted.

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Procedures are well-established, including public consultation and review by a specialist committee.

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Budget has been approved before the beginning of the new fiscal in two of the last three budgets.

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Although budgets have been adjusted in response to the provision of conditional grants for investment, RDF grants have not been included in these arrangements.

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Tax and fee payers have ready access to information on obligations, and procedures exist for appeal

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The main focus of collection effort is on business taxpayers who contribute the largest share of revenue.

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There is no systematic approach to the investigation of non-payment of households.

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No data are available about the nature, amounts and ages of revenue arrears.

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Information is available daily about the nature and amounts of receipts, and reports are made

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All revenue received by municipal departments is paid immediately into the city’s accounts in the Treasury system, but amounts collected by the water company, which now collects the majority of municipal revenues are paid into the Treasury account monthly.

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Reconciliations do not establish total amounts outstanding or the amounts owed by individual tax and fee payers.

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All balances are held in the city’s Treasury account.

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A cash flow forecast is prepared at the beginning of the year, and may be updated to take account of the prospective availability of conditional grants but not revenue trends.

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Administrative units have little assurance that funds will be available to meet planned expenditures.

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Budgets are adjusted to take into account the prospective availability of conditional grants.

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The stock of expenditure arrears was more than 10% of total expenditure in two of the three years 2013-15.

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Data on the stock, age, and composition of expenditure arrears is generated quarterly within four weeks of the end of each quarter.

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Changes in the payroll are initiated by HRD on the basis of changes in personnel records, but there are no automatic links between them.

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The payroll is updated monthly on instructions from HRD. There have been no retroactive adjustments.

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Procedures in HRD and the Finance Directorate provide sufficient assurance of the integrity of personnel records and payroll data.

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Recent audit work by HSC and the city’s Internal Audit Department constitute partial payroll audits

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Full records are kept of all procurement contracts, including what is procured, the value, and the name of the successful contractor.

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Nearly 88 per cent by value of 2015 contracts were placed through the use of competitive procedures.

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Five of six elements of information are published.

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PPC satisfies the requirement for independence and three of the other five criteria.

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Appropriately provided for in accordance with the law on Financial Management and Control, although some local instructions may need review following the municipal reorganisation

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Controls are in place and limit commitments to projected cash availability and approved budget provision, but the latter are not updated to reflect actual revenue performance.

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The Treasury system ensures that all payments are in accordance with established rules and procedures

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IA is operational in all the city’s departments, but coverage in 2015 was limited. Resources need to be increased to take account of the enlarged field following the municipal reorganisation

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Audit meets professional standards and is focused on the operation of systems in high risk areas.

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Most planned audits are completed, with reports sent to audited units before submission to the Mayor.

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Most recommendations are appropriately addressed by responsible managers

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There are monthly reconciliations between city and Treasury records.

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There are monthly reconciliations between Treasury and revenue Directorate records of individual payments.

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No use is made of advance accounts

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Many operations are carried out through unlinked IT systems to which access is not restricted, and which do not ensure adequate audit trails.

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Reports are produced with the same breakdown by administrative unit and economic nature as the original budget

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Reports are produced within 5 working days of the end of each month.

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Payments only are covered, not commitments. There are serious concerns about data accuracy.

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Financial reports are prepared annually, and include a cash flow statement. But they do not provide for a comparison between the actual outturn and the originally approved budget. Information about financial assets and liabilities is incomplete.

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Reports are not submitted for external audit.

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Standards are disclosed, and applied consistently from year to year. But they are not consistent with IPSAS, and differences are not explained.

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Audit coverage exceeds 50%, and international standards are observed

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HSC’s audit reports of the Municipality of Fier are not submitted to the Municipal Council.

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A formal response was made by the executive or the audited entity on audits for which follow up was expected, during the last three completed fiscal years.

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The HSC has its functional and operational independence, and its Head is appointed for a 7-year term by the National Assembly on the proposal of the President of the Republic. It has unrestricted and timely access to records, documentation and information, but its budget is constrained within expenditure ceilings set by the Government.

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The Council has not discussed any audit reports.

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No hearings have taken place.

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The Council has not discussed any audit reports.

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The Council has not discussed any audit reports.

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Total receipts were at least 90 percent of the original budget estimate in two of the last three years

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The difference between the original budget estimate and actual earmarked grants was 10 percent or less in two of the last three year

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A quarterly disbursement plan for unconditional grants is prepared by MoF, and implemented as scheduled. Delays in the payment of shared taxes and conditional grants were of minor significance