Dimension 21.1. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
At the time of the assessment. BCG.
  • Number of bank accounts managed by the Treasury and other budgetary units, and their balance.
  • Number of accounts included in the TSA for which balances are calculated and consolidated by the Treasury.
  • Frequency of the consolidation of bank account balances.
  • Treasury.
  • Budgetary units.
  • Central bank.

electronic clearing and payment arrangements with the government’s bankers. The narrative of the report should include a discussion of the arrangements used in the assessed jurisdiction.

21.1:2. Assessors should indicate whether there is a TSA and whether all government accounts are centralized and/or consolidated. They should also specify the nature and number of bank accounts that are not directly controlled by the Treasury. For such accounts they should state (i) whether records of balances are calculated, and how frequently this occurs, and (ii) whether balances from the accounts are ‘swept’ into a central or consolidated account, and how often (e.g., daily, weekly, monthly).

21.1:3. Consolidation of cash balances exists when the government has information on the total of its cash and bank balances and can switch unused balances to meet overdrawn balances and minimize its borrowing costs. This requires that all balances are held centrally, e.g. by the central bank (which may treat all government accounts as sub-accounts of one consolidated account and only apply interest charges and overdraft limits to the consolidated account balance), or that balances in outlying banks, such as commercial banks, are subject to electronic clearing and payment arrangements.

Dimension 21.2. Cash forecasting and monitoring


21.2:1. This dimension assesses the extent to which budgetary unit commitments and cash flows are forecast and monitored by the MoF. Effective cash flow planning, monitoring, and management by the Treasury facilitates the predictability of the availability of funds for budgetary units. This will require reliable forecasts of cash inflows and outflows, both routine and nonroutine that are linked to the budget implementation and commitment plans of individual budgetary units. Nonroutine outflows are expenditures that do not take place on a regular monthly or annual basis, such as the cost of holding elections or discrete capital investments.

21.2:2. The cash flow forecast referred to in this dimension relates to a consolidated forecast prepared by the relevant central entity, such as a Treasury department. The forecast would normally be expected to be based on information supplied by budgetary units at least once for the year, in addition to analysis performed by the central Treasury. Assessors should report whether cash flow forecasts are prepared at the start of the fiscal year, and the frequency with which cash flow forecasts are updated during the year (e.g., monthly, quarterly, half-yearly).

21.2:3. A cash flow update is an update of the cash flow forecast that requires reestimation/rescheduling of future cash flows


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