21:1. This indicator assesses the extent to which the central MoF is able to forecast cash commitments and requirements and to provide reliable information on the availability of funds to budgetary units for service delivery. It contains the following four dimensions and uses the M2 (AV) method for aggregating dimension scores:

• Dimension 21.1. Consolidation of cash balances

• Dimension 21.2. Cash forecasting and monitoring

• Dimension 21.3. Information on commitment ceilings

• Dimension 21.4. Significance of in-year budget adjustments


Effective service delivery and execution of the budget in accordance with work plans requires that budgetary units receive reliable information on the availability of funds so that they can control commitments and make payments for nonfinancial assets, goods, and services.

Fiscal discipline requires that resources owned by the government are used effectively to achieve fiscal objectives. Cash should be available to meet obligations when they fall due and, when not required for other priorities, should be used to minimize

debt management costs or increase investment returns. This requires an effective cash management system and detailed information on the amount and timing of all receipts and payments. Budgetary units need to be sure that the approved budget will be available when it is needed, so there must be good communication between budgetary units and the custodians of resources on cash requirements and commitment limits. If there are adjustments in budgets during the year, they are likely to have less impact on the efficiency of service delivery if the size and timing of the adjustments are known sufficiently in advance to allow adjustments to be made by service providers to accommodate more or less resources than originally anticipated.

Dimension 21.1. Consolidation of cash balances


21.1:1. This dimension assesses the extent to which the MoF, or other similar entity, can identify and consolidate cash balances as a basis for informing the release of funds. Use of a treasury single account (TSA), or accounts that are centralized at a single bank, usually the central bank, facilitates the consolidation of bank accounts. A TSA is a bank account or a set of linked accounts through which the government transacts every receipt and payment. The control and reporting on individual transactions should be achieved through the accounting system, allowing the Treasury to delink management of cash from control of individual transactions. Achieving regular consolidation of multiple bank accounts not held centrally will generally require making timely

Dimension 21.1. Scoring

Score Minimum requirements for scores
A All bank and cash balances are consolidated on a daily basis
B All bank and cash balances are consolidated on a weekly basis.
C Most cash balances are consolidated on a monthly basis.
D Performance is less than required for a C score.


Pillar Five: Predictability and Control in Budget Execution