PI-25. Internal controls on nonsalary expenditure
Description
This indicator measures the effectiveness of general internal controls for nonsalary expenditures. Specific expenditure controls on public service salaries are considered in PI-23. The present indicator contains three dimensions and uses the M2 (AV) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
25.1. Segregation of duties |
|
| A | Appropriate segregation of duties is prescribed throughout the expenditure process. Responsibilities are clearly laid down. |
| B | Segregation of duties is prescribed throughout the expenditure process. Responsibilities are clearly laid down for most key steps while further details may be needed in a few areas. |
| C | Segregation of duties is prescribed throughout the expenditure process. More precise definition of important responsibilities may be needed. |
| D | Performance is less than required for a C score. |
25.2. Effectiveness of expenditure commitment controls |
|
| A | Comprehensive expenditure commitment controls are in place and effectively limit commitments to projected cash availability and approved budget allocations. |
| B | Expenditure commitment controls are in place and effectively limit commitments to projected cash availability and approved budget allocations for most types of expenditure. |
| C | Expenditure commitment control procedures exist which provide partial coverage and are partially effective. |
| D | Performance is less than required for a C score. |
25.3. Compliance with payment rules and procedures |
|
| A | All payments are compliant with regular payment procedures. All exceptions are properly authorized in advance and justified. |
| B | Most payments are compliant with regular payment procedures. The majority of exceptions are properly authorized and justified. |
| C | The majority of payments are compliant with regular payment procedures. The majority of exceptions are properly authorized and justified. |
| D | Performance is less than required for a C score. |
Coverage
CG.
Time period
At time of assessment.
Measurement guidance
This indicator focuses on nonsalary expenditure and covers expenditure commitments and payments for goods and services, casual labor wages, and discretionary staff allowances. It includes a wide range of processes and types of payment across central government including segregation of duties, commitment controls and payment controls. This broad range of processes, with the many types of expenditure and the number of different people involved, increases the risk of incorrect and/
