Pillar Three: Management of assets and liabilities
PI-10. Fiscal risk reporting
Description
This indicator measures the extent to which fiscal risks to central government are reported. Fiscal risks can arise from adverse macroeconomic situations, financial positions of subnational governments or public corporations, and contingent liabilities from the central government’s own programs and activities, including extrabudgetary units. They can also arise from other implicit and external risks such as market failure and natural disasters. This indicator contains three dimensions and uses the M2 (AV) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
10.1. Monitoring of public corporations |
|
| A | Audited annual financial statements for all public corporations are published within six months of the end of the fiscal year. A consolidated report on the financial performance of the public corporation sector is published by central government annually. |
| B | Audited annual financial statements are published for most public corporations within six months of the end of the fiscal year. |
| C | Government receives financial reports from most public corporations within nine months of the end of the fiscal year. |
| D | Performance is less than required for a C score. |
10.2. Monitoring of subnational governments |
|
| A | Audited annual financial statements for all subnational governments are published within nine months of the end of the fiscal year. A consolidated report on the financial position of all subnational governments is published at least annually. |
| B | Audited annual financial statements for most subnational governments are published at least annually within nine months of the end of the fiscal year. |
| C | 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. |
| D | Performance is less than required for a C score. |
10.3. Contingent liabilities and other fiscal risks |
|
| A | A report is published by central government annually that quantifies and consolidates information on all significant contingent liabilities and other fiscal risks of central government. |
| B | Central government entities and agencies quantify most significant contingent liabilities in their financial reports. |
| C | Central government entities and agencies quantify some significant contingent liabilities in their financial reports. |
| D | Performance is less than required for a C score. |
Coverage
Dimension 10.1: CG-controlled public corporations.
Dimension 10.2: Subnational government entities that have direct fiscal relations with the CG.
Dimension 10.3: CG.
