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TERM DEFINITION
Inventories Produced assets consisting of goods and services, which came into existence in the current period or an earlier period, and that are held for sale, use in production, or other use at a later date (GFS Manual 2014, page 406).
Large revenue payers Those that make significant payments and account, in aggregate, for a large proportion of total revenues (often more than 50 percent of total amount collections). Countries tend to define large payers by reference to: (i) amount of annual sales/turnover; (ii) amount of annual income; (iii) value of assets; (iv) level of imports and/or exports; and (v) type of economic activities (e.g., financial services). Of these criteria, the amount of annual sales/turnover is normally the primary criterion.
Major investment projects
  • Projects meeting both of the following criteria: The total investment cost of the project amounts to 1 percent or more of total annual budget expenditure; and
  • The project is among the largest 10 projects (by total investment cost) for each of the 5 largest central government units, measured by the units’ investment project expenditure.
M1 (WL)

Weakest link (WL) method, used for multidimensional indicators where poor performance on one dimension is likely to undermine the impact of good performance on other dimensions of the same indicator. The steps in determining the aggregate indicator score are as follows:

Each dimension is initially assessed separately and given a score on the four point calibration scale.

  • The aggregate score for the indicator is the lowest score given for any dimension.
  • Where any of the other dimensions score higher, a “+” is added to the indicator score. Note: It is NOT acceptable to choose the score for one of the higher-scoring dimensions and add a “-” for any lower scoring dimensions.
M2 (AV)

Averaging method (AV), prescribed for selected multidimensional indicators where a low score on one dimension of the indicator does not necessarily undermine the impact of a high score on another dimension of the same indicator. The steps in determining the aggregate indicator score are as follows:

  • Each dimension is initially assessed separately and given a score on the four point calibration scale.
  • Refer to the conversion table for indicator scores using the averaging method and find the appropriate section of the table—that is, whether there are two, three, or four dimensions for the indicator.
  • Identify the row in the table that matches the scores for each dimension of the indicator; the ordering of the dimension scores does not matter.
  • Enter the corresponding overall score for the indicator
Market (or fair) value Amount at which an asset could be exchanged between willing parties at the current time.

 

PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA
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