these costs into budgets going forward. Solid budget and cash-flow management, as well as cost-benefit analysis, depend on comprehensive financial analysis of investment projects.

Dimension 11.4 assesses the extent to which prudent project monitoring and reporting arrangements are in place for ensuring value for money and fiduciary integrity. The monitoring system should maintain records on both physical and financial progress, including estimates of work in progress, and produce periodic project-monitoring reports. Monitoring should cover projects from the point of approval and throughout implementation. The system should allow supplier payments to be linked to evidence of physical progress. Such a system should also identify deviations from plans and allow for identification of appropriate actions in response.

Certain important issues for public investment management are not treated explicitly by this indicator but are covered by other indicators³ :(a) the issue of consistency of investment projects with national or sector policy objectives is addressed by PI-16; (b) the quality of the procurement process—for example, the extent to which a reliable, comprehensive procurement plan is prepared ex ante—is covered by PI-24; (c) the question of asset management, including a well-maintained asset register that records accurate values, is examined in PI-12.