PI-29. Annual financial reports
Description
This indicator assesses the extent to which annual financial statements are complete, timely, and consistent with generally accepted accounting principles and standards. This is crucial for accountability and transparency in the PFM system. It contains three dimensions and uses the M1 (WL) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
29.1. Completeness of annual financial reports |
|
|
A |
Financial reports for budgetary central government are prepared annually and are comparable with the approved budget. They contain full information on revenue, expenditure, financial and tangible assets, liabilities, guarantees, and long-term obligations, and are supported by a reconciled cash flow statement. |
|
B |
Financial reports for budgetary central government are prepared annually and are comparable with the approved budget. They contain information on at least revenue, expenditure, financial assets, financial liabilities, guarantees, and long-term obligations. |
| C |
Financial reports for budgetary central government are prepared annually, and are comparable with the approved budget. They include information on revenue, expenditure, and cash balances. |
| D | Performance is less than required for a C score. |
29.2. Submission of reports for external audit |
|
| A |
Financial reports for budgetary central government are submitted for external audit within 3 months of the end of the fiscal year. |
| B |
Financial reports for budgetary central government are submitted for external audit within 6 months of the end of the fiscal year. |
| C |
Financial reports for budgetary central government are submitted for external audit within 9 months of the end of the fiscal year. |
| D | Performance is less than required for a C score. |
29.3. Accounting standards |
|
| A |
Accounting standards applied to all financial reports are consistent with international standards. Most international standards have been incorporated into the national standards. Variations between international and national standards are disclosed and any gaps are explained. The standards used in preparing annual financial reports are disclosed in notes to the reports. |
| B |
Accounting standards applied to all financial reports are consistent with the country’s legal framework. The majority of international standards have been incorporated into the national standards. Variations between international and national standards are disclosed and any gaps are explained. The standards used in preparing annual financial reports are disclosed. |
| C |
Accounting standards applied to all financial reports are consistent with the country’s legal framework and ensure consistency of reporting over time. The standards used in preparing annual financial reports are disclosed. |
| D | Performance is less than required for a C score. |
Coverage
BCG.
Time period
Dimension 29.1:Last completed fiscal year.
