Public Sector Governance and Accountability Series: Budgeting and ...

362 Matthew Andrews
BOX 11.1 PEFA’s Broad Focal Points for Public
Financial Management
Shown below are the broad headings of the PEFA indicators, as they pertain
to public expenditure management issues (revenue management issues are
omitted).
Public Financial Management Outturns: Budget Credibility
—Aggregate expenditure outturn compared with original approved
budget
—Composition of expenditure outturn compared with original approved
budget
—Aggregate revenue outturn compared with original approved budget
—Stock and monitoring of expenditure payment arrears
Key Cross-Cutting Issues: Comprehensiveness and Transparency
—Classification of the budget
—Comprehensiveness of information included in budget documentation
—Extent of unreported government operations
—Transparency of intergovernmental fiscal relations
—Oversight of aggregate fiscal risk from other public sector entities
—Public access to key fiscal information
Budget Cycle: Policy-Based Budgeting
—Orderliness and participation in the annual budget process
—Multiyear perspective in fiscal planning, expenditure policy making,
and budgeting
Budget Cycle: Predictability and Control in Budget Execution
—Predictability in the availability of funds for commitment of expenditures
—Recording and management of cash balances, debt, and guarantees
—Effectiveness of payroll controls
—Competition, value for money, and controls in procurement
—Effectiveness of internal controls for nonsalary expenditure and assets
management
—Effectiveness of internal audit
Budget Cycle: Accounting, Recording, and Reporting
—Timeliness and regularity of accounts reconciliation
—Availability of information on resources received by service delivery units
—Quality and timeliness of in-year budget reports
—Quality and timeliness of annual financial statements
Budget Cycle: External Scrutiny and Audit
—Scope, nature, and follow-up of external audit
—Legislative scrutiny of the annual budget law
—Legislative scrutiny of external audit reports