72

10.2:7. If the assessment is conducted within less than 9 months after the end of the last completed fiscal year, assessors might not be able to assess the different requirements of the dimension. In this case, they can base their assessment on the subnational reports of the previous year.

 

Dimension 10.2. Scoring

Score Minimum requirements for scores
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.

Dimension 10.2. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last completed fiscal year Subnational government entities that have direct fiscal relations with the CG.
  • Date of submission to supervising CG ministry and date of publication of the annual financial statements or reports of each subnational government, including whether they are audited.
  • Consolidated fiscal reports of subnational governments and frequency of publication based on the last report published.
  •  MoF.
  • Ministry of Local Government or similar.
  • Triangulation with information from selected subnational governments.
Dimension 10.3. Contingent liabilities and other fiscal risks

DIMENSION MEASUREMENT GUIDANCE

10.3:1. This dimension assesses monitoring and reporting of the central government’s explicit contingent liabilities from its own programs and projects, including those of extrabudgetary units. Explicit contingent liabilities include umbrella state guarantees for various types of loans—for example, mortgage loans, student loans, agriculture loans, and

small business loans. Explicit contingent liabilities also include state insurance schemes, such as deposit insurance, private pension fund insurance, and crop insurance. The financial implications of ongoing litigation and court cases should be included, although these are often difficult to quantify. State guarantees for nonsovereign borrowing by private sector enterprises and guarantees on private investments of different types, including special financing instruments such as public-private partnerships (PPPs), should be reported. In many

 

PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA
72