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Strengthening Financial
Scrutiny
53rd Commonwealth Parliamentary Conference
New Delhi
September 2007
Les Kojima
Senior Financial Management Specialist
The World Bank
Public Financial Management
External Scrutiny
and Audit
Budget
Formulation
Accounting and
Reporting
Budget
Execution
PEFA Partners
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International Monetary Fund
European Commission
UK Department for International Development
French Ministry of Foreign Affairs
Norwegian Ministry of Foreign Affairs
Swiss State Secretariat for Economic Affairs
Strategic Partnership with Africa
World Bank
PFM Strengthened Approach
Donor Country
Assistance Strategy
Monitoring
Results
-----------------PFM
Performance
Measurement
Framework
Government/Donor
Policy Dialogue
Government PFM
Reform Strategy,
Action Plan and
Results
Donors’
Technical
Assistance &
Financing
PEFA Performance Indicators
26.
External audit
27. Legislative scrutiny
of budget
28. Legislative scrutiny
of external audit
reports
11.
Budget 12.
Formulation
External Scrutiny
and Audit
Orderliness in annual budget process
Multi-year perspective
13.
14.
22.
23.
24.
25.
Accounts reconciliation
Resources received by
service delivery units
Quality and timeliness of
in-year budget reports
Quality and timeliness of
annual financial
statements
15.
16.
17.
Budget
Execution
Accounting and
Reporting
18.
19.
20.
21.
Transparency of taxpayer obligations and
liabilities
Effectiveness of taxpayer registration and
assessment
Effectiveness of tax collection
Predictability of funds for commitment
Recording/management of cash, debt and
guarantees
Effectiveness of payroll controls
Competition, value for money and controls
in procurement
Effectiveness of internal controls
Effectiveness of internal audit
Cross-cutting Indicators
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5.
Aggregate expenditure out-turn
Composition of expenditure out-turn
Aggregate revenue out-turn
Payment arrears
Classification of the budget
6.
7.
8.
9.
10.
Comprehensiveness of information
Unreported government operations
Transparency of inter-governmental fiscal relations
Oversight of aggregate fiscal risk
Public access to key fiscal information
PI-27: Legislative scrutiny of the annual
budget law
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Dimensions to be assessed:
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Scope of the legislature’s scrutiny
Extent to which the legislature’s procedures are
well-established and respected
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Adequacy of time for the legislature to respond
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Rules for in-year budget amendments without
ex-ante approval by the legislature
PI-28: Legislative scrutiny of external
audit reports
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Dimensions to be assessed:
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Timeliness of audit reports by the legislature
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Extent of hearings on key findings
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Extent of implementation by the executive of
recommended actions
Strengthening Financial Scrutiny
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Follow up contact addresses:
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www.pefa.org
[email protected]