I. Credibility of the Budget
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure out-turn compared to original approved budget
C
Notes:
1.1 The difference between actual primary expenditure and the originally budgeted primary expenditure (i.e. excluding debt service charges, but also excluding externally financed project expenditure)
C
Notes:
In no more than one out of the last three years has the actual expenditure deviated from budgeted expenditure by an amount equivalent to more than 15% of budgeted expenditure. (P. 239)
2. Composition of expenditure out-turn compared to original approved budget
C
Notes:
2.1 Extent of the variance in expenditure composition during the last three years, excluding contingency items (the methodolodgy to rate this dimension is set out in the footnote of the PFM PMF booklet)
C
Notes:
Variance in expenditure composition exceeded overall deviation in primary expenditure by 10 percentage points in no more than one of the last three years. (P. 240)
2.2 The average amount of expenditure actually charged to the contingency vote over the last three years
NU
Notes:
3. Aggregate revenue out-turn compared to original approved budget
A
Notes:
3.1 Actual domestic revenue collection compared to domestic revenue in the originally approved budget
A
Notes:
Actual domestic revenue collection was below 97% of budgeted domestic revenue estimates in no more than one of the last three years (P. 242)
4. Stock and monitoring of expenditure payment arrears
C+
Notes:
4.1 Stock of expenditure payment arrears (as a percentage of actual total expenditure for the corresponding fiscal year) and any recent change in the stock
C
Notes:
The stock of arrears constitutes 2-10% of total expenditure; and there is no evidence that it has been reduced significantly in the last two years (P. 243)
4.2 Availability of data for monitoring the stock of expenditure payment arrears
B
Notes:
Data on the stock of arrears is generated annually, but may not be complete for a few identified expenditure categories or specified budget institutions (P. 243)
II. Comprehensiveness and Transparency
Scores by Dimension
Overall Indicator Score
5. Classification of the budget
A
Notes:
5.1 The classification system used for formulation, execution and reporting of the central government's budget
A
Notes:
Budget formulation and execution is based on functional, economic and administrative classifications according to GFS/COFOG standards (P. 244)
6. Comprehensiveness of information included in budget documentation
B
Notes:
6.1 Share of the listed information under PI-6 in the PFM PMF booklet in the budget documentation most recently issued by the central government (in order to count in the assessment, the full specification of the information benchmark must be met)
B
Notes:
Recently issued budget documentation meets 5-6 out of 9 information benchmarks (P. 246)
7. Extent of unreported government operations
A
Notes:
7.1 The level of extra-budgetary expenditure (other than donor funded projects) which is unreported i.e. not included in fiscal reports.
A
Notes:
The level of extra-budgetary expenditure (other than donor funded projects) which is unreported i.e. not included in fiscal reports, is insignificant (under 1% of total expenditure) (P. 247)
7.2 Income/expenditure information on donor-funded projects which is included in fiscal reports.
A
Notes:
Complete income/expenditure information for 90% (value) of donor-funded projects is included in fiscal reports, except inputs provided in-kind OR donor funded project expenditure is insignificant (below 1% of total expenditure). (P. 247)
8. Transparency of inter-governmental fiscal relations
NA
Notes:
8.1 Transparent and rules based systems in the horizontal allocation among SN governments of unconditional and conditional transfers from central government (both budgeted and actual allocations);
NA
Notes:
8.2 Timeliness of reliable information to SN governments on their allocations from central government for the coming year;
NA
Notes:
8.3 Extent to which consolidated fiscal data (at least on revenue and expenditure) is collected and reported for general government according to sectoral categories.
NA
Notes:
9. Oversight of aggregate fiscal risk from other public sector entities.
NA
Notes:
9.1 Extent of central government monitoring of AGAs and PEs.
NA
Notes:
9.2 Extent of central government monitoring of SN government's fiscal position
NA
Notes:
10. Public access to key fiscal information
A
Notes:
10.1 Number of the above listed elements of public access to information that is fulfilled (in order to count in the assessment, the full specification of the information benchmark must be met)
A
Notes:
The Government makes available to the public 6-7 of the 7 listed types of information (P. 250)
III. Policy-Based Budgeting
Scores by Dimension
Overall Indicator Score
11. Orderliness and participation in the annual budget process
B+
Notes:
11.1 Existence of and adherence to a fixed budget calendar;
A
Notes:
A clear annual budget calendar exists, is generally adhered to and allows MDAs enough time (and at least six weeks from receipt of the budget circular) to meaningfully complete their detailed estimates on time (P. 252)
11.2 Clarity/comprehensiveness of and political involvement in the guidance on the preparation of budget submissions (budget circular or equivalent);
B
Notes:
A comprehensive and clear budget circular is issued to MDAs which reflects ceilings approved by Cabinet (or equivalent). This approval takes place after the circular distribution to MDAs, but before MDAs have completed their submission (P. 252)
11.3 Timely budget approval by the legislature or similarly mandated body (within the last three years);
A
Notes:
The legislature has, during the last three years, approved the budget before the start of the fiscal year (P. 252)
12. Multi-year perspective in fiscal planning, expenditure policy and budgeting
D
Notes:
12.1 Preparation of multi -year fiscal forecasts and functional allocations
D
Notes:
No forward estimates of fiscal aggregates are undertaken (P. 254)
12.2 Scope and frequency of debt sustainability analysis
NA
Notes:
12.3 Existence of sector strategies with multi-year costing of recurrent and investment expenditure;
D
Notes:
Statements of sector strategies exist for several major sectors but none have comprehensive substantial cost attached for investments and recurrent expenditure (P. 254)
12.4 Linkages between investment budgets and forward expenditure estimates.
D
Notes:
Budgeting for investment and recurrent expenditure are separate processes with no recurrent cost estimates being shared (P. 254)
IV. Predictability and Control in Budget Execution
Scores by Dimension
Overall Indicator Score
13. Transparency of taxpayer obligations and liabilities
A
Notes:
13.1 Clarity and comprehensiveness of tax liabilities
A
Notes:
Legislation and procedures for all major taxes are comprehensive and clear, with strictly limited discretionary powers of the government entities involved (P. 256)
13.2 Taxpayer access to information on tax liabilities and administrative procedures.
A
Notes:
Taxpayers have easy access to comprehensive, user friendly and up-to-date information on tax liabilities and administrative procedures for all major taxes, and the RA supplements this with active taxpayer education campaigns (P. 256)
13.3 Existence and functioning of a tax appeals mechanism.
A
Notes:
A tax appeals system of transparent administrative procedures with appropriate checks and balances, and implemented through independent institutional structures, is completely set up and effectively operating with satisfactory access and fairness, and its decisions are promptly acted upon (P. 256)
14. Effectiveness of measures for taxpayer registration and tax assessment
B
Notes:
14.1 Controls in the taxpayer registration system.
A
Notes:
Taxpayers are registered in a complete database system with comprehensive direct linkages to other relevant government registration systems and financial sector regulations (P. 259)
14.3 Planning and monitoring of tax audit and fraud investigation programs.
D
Notes:
Tax audits and fraud investigations are undertaken on ad hoc basis if at all (P. 259)
14.2 Effectiveness of penalties for non-compliance with registration and declaration obligations
B
Notes:
Penalties for non compliance exist for mos relevant areas, but are not always effective due to insufficient scale and/or inconsistent administration (P. 259)
15. Effectiveness in collection of tax payments
D+
Notes:
15.1 Collection ratio for gross tax arrears, being the percentage of tax arrears at the beginning of a fiscal year, which was collected during that fiscal year (average of the last two fiscal years).
D
Notes:
The debt collection ratio in the most recent year was below 60% and the total amount of tax arrears is significant (i.e. more than 2% of total annual collections) (P. 260)
15.2 Effectiveness of transfer of tax collections to the Treasury by the revenue administration.
A
Notes:
All tax revenue is paid directly into accounts controlled by the Treasury or transfers to the Treasury are made daily (P. 260)
15.3 Frequency of complete accounts reconciliation between tax assessments, collections, arrears records and receipts by the Treasury.
A
Notes:
Complete reconciliation of tax assessments, collections, arrears and transfers to Treasury takes place at least monthly within one month of end of month (P. 260)
16. Predictability in the availability of funds for commitment of expenditures
A
Notes:
16.2 Reliability and horizon of periodic in-year information to MDAs on ceilings for expenditure commitments
A
Notes:
MDAs are able to plan and commit expenditure for at least six month in advance in accordance with the budgeted appropriations (P. 262)
16.3 Frequency and transparency of adjustments to budget allocations, which are decided above the level of management of MDAs.
A
Notes:
Significant in-year adjustments to budget allocations take place only once or twice in a year and are done in a transparent and predictable way (P. 262)
16.1 Extent to which cash flows are forecast and monitored
A
Notes:
A cash flow forecast is prepared for the fiscal year, and are updated monthly on the basis of actual cash inflows and outflows (P. 262)
17. Recording and management of cash balances, debt and guarantees
A
Notes:
17.1 Quality of debt data recording and reporting
NA
Notes:
17.2 Extent of consolidation of the government’s cash balances
A
Notes:
All cash balances are consolidated on daily basis.(P. 263)
17.3 Systems for contracting loans and issuance of guarantees.
NA
Notes:
18. Effectiveness of payroll controls
B+
Notes:
18.1 Degree of integration and reconciliation between personnel records and payroll data.
B
Notes:
Personnel data and payroll data are not directly linked but the payroll is supported by full documentation for all changes made to personnel records each month and checked against the previous month’s payroll data (P. 266)
18.2 Timeliness of changes to personnel records and the payroll
A
Notes:
Required changes to the personnel records and payroll are updated monthly, generally in time for the following month’s payments. Retroactive adjustments are rare (if reliable data exists, it shows corrections in max. 3% of salary payments) (P. 266)
18.3 Internal controls of changes to personnel records and the payroll.
B
Notes:
Authorization and basis for changes to personnel records and the payroll are clear (P. 266)
18.4 Existence of payroll audits to identify control weaknesses and/or ghost workers.
B
Notes:
A payroll audit covering all central government entities has been conducted at least once in the last three years (whether in stages or as one single exercise) (P. 266)
19. Transparency, competition and complaints mechanisms in procurement
B+
Notes:
19.1 Transparency, comprehensiveness and competition in the legal and regulatory framework
Notes:
Accurate data’s on the method used to award public contracts exists and shows that over 75% of contracts that exceed the threshold are awarded on the basis of open competition (P. 269)
19.2 Use of competitive procurement methods
Notes:
Justification for use of less competitive methods is weak or missing (P. 269)
19.3 Public access to complete, reliable and timely procurement information
Notes:
Defined process within the legislation for submission and timely resolution of complaints regarding procurement process, is operational and is subject to the supervision of an external body with data’s on resolution of complaints made available to the public (P. 269)
19.4 Existence of an independent administrative procurement complaints system
NU
Notes:
20. Effectiveness of internal controls for non-salary expenditure
C+
Notes:
20.1 Effectiveness of expenditure commitment controls.
C
Notes:
Expenditure commitment control procedures exist and are partially effective, but they may not comprehensively cover all expenditures or they may occasionally be violated (P. 271)
20.2 Comprehensiveness, relevance and understanding of other internal control rules/ procedures
A
Notes:
Other internal control rules and procedures are relevant, incorporate a comprehensive and generally cost effective set of controls, which are widely understood (P. 271)
20.3 Degree of compliance with rules for processing and recording transactions
C
Notes:
Rules are complied with in a significant majority of transactions, but use of simplified/emergency procedures in unjustified situations is an important concern (P. 271)
21. Effectiveness of internal audit
B+
Notes:
21.1 Coverage and quality of the internal audit function.
A
Notes:
Internal audit is operational in all SN government entities, and generally meets the professional standards. It is focused on systemic issues (in at least 50% of staff time) (P. 272)
21.2 Frequency and distribution of reports
A
Notes:
Reports follow a fix timeline and are distributed to the audited entity, Ministry of Finance, and IA (P. 272)
21.3 Extent of management response to internal audit findings.
B
Notes:
Immediate and comprehensive follow up is done by majority (not all) of management members (P. 272)
V. Accounting, Recording and Reporting
Scores by Dimension
Overall Indicator Score
22. Timeliness and regularity of accounts reconciliation
A
Notes:
22.1 Regularity of bank reconciliations
A
Notes:
Bank reconciliation for all SN government bank accounts take place at least monthly at aggregate and detailed levels, usually within 4 weeks of end of period (P. 273)
22.2 Regularity of reconciliation and clearance of suspense accounts and advances.
A
Notes:
Reconciliation and clearance of suspense accounts and advances take place at least quarterly within one month of end of period and with only some balances brought forward (P. 273)
23. Availability of information on resources received by service delivery units
B
Notes:
23.1 Collection and processing of information to demonstrate the resources that were actually received (in cash and kind) by the most common front-line service delivery units (focus on primary schools and primary health clinics) in relation to the overall
B
Notes:
Routine data collection or accounting systems provide reliable information on all types of resources received in cash and in kind by either primary schools or primary health clinics across most of the SN’s governance jurisdiction with information compiled into reports at least annually; OR special surveys undertaken within the last three years have demonstrated the level of resources received in cash and in kind by both primary schools and primary health clinics across most of the country (including by representative sampling) (P. 274)
24. Quality and timeliness of in-year budget reports
A
Notes:
24.1 Scope of reports in terms of coverage and compatibility with budget estimates
A
Notes:
Classification of data allows direct comparison to the original budget. Information includes all items of budget estimates. Expenditure is covered at both commitment and payment stages. (P. 275)
24.2 Timeliness of the issue of reports
A
Notes:
Reports are prepared quarterly or more frequently, and issued within 4 weeks of end of period (P. 275)
24.3 Quality of information
A
Notes:
There are no material concerns regarding data accuracy. (P. 275)
25. Quality and timeliness of annual financial statements
D+
Notes:
25.1 Completeness of the financial statements
D
Notes:
A consolidated government statement is not prepared annually, or essential information is missing from the financial statements or financial records are too poor to enable audit (P. 276)
25.2 Timeliness of submission of the financial statements
A
Notes:
The statement is submitted for external audit within 6 months of the end of the fiscal year (P. 276)
25.3 Accounting standards used
C
Notes:
Statements are presented in consistent format overtime with some disclosure of accounting standards (P. 276)
VI. External Scrutiny and Audit
Scores by Dimension
Overall Indicator Score
26. Scope, nature and follow-up of external audit
D+
Notes:
26.1 Scope/nature of audit performed (incl. adherence to auditing standards).
B
Notes:
SN government entities representing at least 75% of total expenditures are audited annually at least covering revenue and expenditure. A wide range of financial audits are performed and generally adheres to auditing standards, focusing on significant and systematic issues. There is a clears delegation of responsibilities between audit entities. (P. 277)
26.2 Timeliness of submission of audit reports to legislature.
B
Notes:
Audit Reports are submitted to the legislature within 8 months of the end of the period covered and in the case of financial statements from their receipt by the audit office (P. 277)
26.3 Evidence of follow up on audit recommendations
D
Notes:
There is little evidence of response or follow up (P. 277)
27. Legislative scrutiny of the annual budget law
B+
Notes:
27.1 Scope of the legislature’s scrutiny.
A
Notes:
The legislature’s review covers fiscal policies, medium term fiscal framework and medium term priorities as well as details of expenditure and revenue (P. 279)
27.2 Extent to which the legislature’s procedures are well-established and respected.
A
Notes:
The legislature’s procedures for budget review are firmly established and respected. They include internal organizational arrangements, such as specialized review committee, and negotiation procedures (P. 279)
27.3 Adequacy of time for the legislature to provide a response to budget proposals both the detailed estimates and, where applicable, for proposals on macro-fiscal aggregates earlier in the budget preparation cycyle (time allowed in practice for all stag
B
Notes:
The legislature has at least one month to review the budget proposals (P. 279)
27.4 Rules for in-year amendments to the budget without ex-ante approval by the legislature.
A
Notes:
Clear rules exist for in-year budget amendments by the executive, set strict limits on extent and nature of amendments and are consistently respected (P. 279)
28. Legislative scrutiny of external audit reports
D+
Notes:
28.1 Timeliness of examination of audit reports by the legislature (for reports received within the last three years).
A
Notes:
Scrutiny of audit reports is usually completed by the legislature within 3 months from receipt of the reports (P. 280)
28.2 Extent of hearings on key findings undertaken by the legislature.
A
Notes:
In-depth hearings on key finding take place consistently with responsible officers from all or most audited entities which receive a qualified or adverse audit opinion (P. 280)
28.3 Issuance of recommended actions by the legislature and implementation by the executive.
D
Notes:
No recommendations are being issued by the legislature (P. 280)
Donor Practices
Scores by Dimension
Overall Indicator Score
D-1 Predictability of Direct Budget Support
NA
Notes:
D-1.1 Annual deviation of actual budget support from the forecast provided by the donor agencies at least six weeks prior to the government submitting its budget proposals to the legislature (or equivalent approving body).
NA
Notes:
D-1.2 In-year timeliness of donor disbursements (compliance with aggregate quarterly estimates)
NA
Notes:
D-2 Financial information provided by donors for budgeting and reporting on project and program aid
D
Notes:
D-2.1 Completeness and timeliness of budget estimates by donors for project support.
D
Notes:
Not all major donors provide budget estimates for disbursement of project aid at least for the government’s coming fiscal year and at least three months prior its start (P. 282)
D-2.2 Frequency and coverage of reporting by donors on actual donor flows for project support.
D
Notes:
Donors do not provide quarterly reports within one two month of end-of-quarter on the all disbursements made for at least 50% of the externally financed project estimates in the budget (P. 282)
D-3 Proportion of aid that is managed by use of national procedures
D
Notes:
D-3.1 Overall proportation of aid funds to central government that are managed through national procedures
D
Notes:
Less than 50% of aid funds to SN are managed through national procedures (P. 282)
