Dimension 19.3. Timing, coverage and data requirements

Time period Coverage Data requirements/ calculation Data sources
Last completed fiscal year CG
  • The existence of a compliance improvement plan for each revenue-collecting authority or major revenue measure.
  • Data on the extent to which audit and fraud investigations are managed and reported on according to a documented compliance improvement plan.
  • The completion rate of audit and fraud investigations (i.e., a comparison of those planned and those conducted).
  • Documented compliance improvement plan.
  • Status reports on progress in the implementation of planned riskmitigation activities and audit and fraud investigations. (The best information sources are the entities collecting most or the majority of central government revenue.)
Dimension 19.4. Revenue arrears monitoring


19.4:1. This dimension assesses the extent of proper management of arrears within the revenue entities by focusing on the level and age of revenue arrears. Revenue administrations need to have a critical focus on the management of arrears to ensure that debts owed to the government are managed actively and that appropriate processes are adopted focusing on expediting the payment of collectable debt. This will ensure that revenue administrations maximize the collection of arrears before they become uncollectable. In order for the arrears management process to be considered comprehensive, it should allow for capturing information on revenue arrears and facilitate collection of those arrears in the year they occur.

19.4:2. The assessment narrative should note whether there is a clear definition of revenue arrears, and whether this is disaggregated by the main revenue sources. It should also note whether the information

provided is reliable, meaning that the ending balance of receivable after considering new assessments, payments under dispute, or to be refunded, can be classified into current or in arrears, and their age if in arrears. This would mean that payments should be clear at to what period of assessment they are being applied. Additionally, the report should identify whether there is a comprehensive document available that establishes rules and procedures for the management of revenue arrears, as well as the existence of any report on the outcomes of managing revenue arrears.

19.4:3. Arrears in the payment of refunds or the processing of revenue offsets to revenue payers by revenue authorities are not included in the measurement of this dimension. However, where there is a significant backlog or outstanding liability for the payment of refunds or processing of offsets, assessors should note this in the PEFA report narrative. Where possible, assessors should also note the approximate size of such liabilities in terms of value or share of total revenue.


Pillar Five: Predictability and Control in Budget Execution