Dimension 21.2. Scoring
|Score||Minimum requirements for scores|
A cash flow forecast is prepared for the fiscal year and is updated monthly on the basis of actual cash inflows and outflows.
A cash flow forecast is prepared for the fiscal year and is updated at least quarterly on the basis ofactual cash inflows and outflows.
|C||A cash flow forecast is prepared for the fiscal year.|
|D||Performance is less than required for a C score.|
Dimension 21.2. Timing, coverage and data requirements
|Time period||Coverage||Data requirements/calculation||Data sources|
Evidence of the preparation of cash flow
forecasts by a central entity and frequency of
Dimension 21.3. Information on commitment ceilings
DIMENSION MEASUREMENT GUIDANCE
21.3:1. This dimension assesses the reliability of in-year information available to budgetary units on ceilings for expenditure commitment for specific periods. Predictability for budgetary units as to the availability of funds for commitment is necessary to facilitate planning of activities and procurement of inputs for effective service delivery and to avoid disruption of the implementation of these plans once they are under way. In certain systems, funds are released by the MoF to budgetary units in stages throughout the budget year. In others, the passing of the annual budget law grants the full authority to commit and spend from the beginning of the year.
However, the MoF, Treasury, or other central agency,may in practice impose constraints on budgetary units in incurring new commitments and making related payments, when cash flow problems arise. For commitments to be considered reliable, the amount of funds for commitment or spending made available
to an entity for a specific period should not be reduced during that period. Adherence of budgetary units to ceilings for expenditure commitment and payments is not assessed here, but is covered by PI-25 on internal controls. PI-22 on expenditure arrears management is also relevant because it has implications for the effectiveness of commitment controls.
21.3:2. The PEFA report should note whether budgetary units are provided with reliable information on the actual resources available for commitments, and how far in advance such information is made available (e.g., 1, 2, 3, 6, or 12 months). The assessment should also indicate whether budgetary units are able to plan and commit expenditures in accordance with budget appropriations and whether the Treasury utilizes non-transparent control mechanisms when experiencing cash flow problems (e.g., delaying the printing or issue of checks or electronic funds transfers to suppliers, or delaying the transfer of funds to budget entity accounts for which checks have already been written by the budget entity).