The PEFA Fiduciary Guidance is not a methodology in itself, it aims to enhance the use of PEFA reports for fiduciary considerations on country systems. As it follows the standard PEFA methodology, its focus is on central government (CG), with deeper emphasis on the Budgetary Central Government (BCG). The guidance focuses on the elements of information in the PEFA report to consider in country systems from a fiduciary standpoint. It does not draw conclusions or prescribe mitigating measures in relation with the elements assessed.

The present document does not aim at substituting the fiduciary methodologies developed by the development agencies. Its intent is to help the fiduciary works by providing a guidance on how to use the PEFA reports as an input. It includes a correspondence table between fiduciary risk areas, and PEFA dimensions, and an analysis of the extent to which the PEFA dimensions can contribute to the fiduciary assessment. The use of PEFA for Fiduciary consideration has the advantage of being based on an established methodology used by development partners that could promote and support the donor harmonization agenda. As different institutions may have different risk appetites, they may conclude differently with the same information.

This guidance is based on the seven key fiduciary key areas of the PFM cycle:

(i) budgeting, (ii) flow of funds, (iii) internal controls, (iv) procurement, (v) accounting, (vi) financial reporting, and (vii) auditing. Each fiduciary area is broken down in critical PFM processes identified as fiduciary processes, which are linked to corresponding PEFA dimensions. Those fiduciary processes that are not covered by PEFA are not included in this guidance.

The guidance is prepared with focus on using the PEFA reports as source of information.