the specific circumstances. Factors that need to be considered include whether the entity is part of the central government or broader public sector and whether the entity engages in market or nonmarket activities. For example, depending on the country, the post office may be a government department, an extrabudgetary unit, or public corporation (or even a private corporation subject to a PPP), depending on the nature of its business processes and the level of government control.
6:4. A separate indicator PI-29 assesses the extent to which budgetary central government units submit financial reports for audit.
6:5. Implicit expenditures such as quasi-fiscal operations, donor grants-in-kind, and tax expenditures are not included in the coverage of the indicator. (Quasi-fiscal operations are government operations carried out by institutional units other than general government units. They are part of the public sector (GFS Manual 2014, section 2.4).
6:6. Assessors should refer to the GFS Manual for further guidance on which institutions, revenues, and expenditures are considered extrabudgetary when assessing this indicator.
Dimension 6.1. Expenditure outside financial reports
DIMENSION MEASUREMENT GUIDANCE
6.1:1. This dimension assesses the magnitude of expenditures incurred by budgetary and extrabudgetary units (including social security funds) that are not reported in the government’s financial reports. Such expenditures may include expenditures from fees and charges collected and retained by budgetary and extrabudgetary units outside the approved budget, as well as expenditures on externally funded projects and activities where these are not reported in central government financial reports.
Dimension 6.1. Scoring
| Score | Minimum requirements for scores |
|---|---|
| A | Expenditure outside government financial reports is less than 1% of total BCG expenditure. |
| B | Expenditure outside government financial reports is less than 5% of total BCG expenditure. |
| C | Expenditure outside government financial reports is less than 10% of total BCG expenditure. |
| D | Performance is less than required for a C score |
Dimension 6.1. Timing, coverage and data requirements
| Time period | Coverage | Data requirements/ calculation | Data sources |
|---|---|---|---|
| Last completed fiscal year. | CG. |
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PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA
