NOTES

1. Public financial management includes all phases of the budget cycle, including the preparation of the budget, internal control and audit, procurement, monitoring and reporting arrangements, and external audit. The broad objectives of public financial management are to achieve overall fiscal discipline, allocation of resources to priority needs, and efficient and effective allocation of public services.

2. See the Country Analytic Work Website at www.countrryanalytic-work.net, also referred to in the Good Practice Paper Country Analytic Work and Preparation of Projects and Programmes.

Table A2.1: Indicators of good practice in measuring performance in public financial management

Annex 3

Technical Map of the Assessment Instruments

Table A3.1 shows the coverage of public expenditure management issues for the six main assessment instruments-PERs, CFAAs, CPARs, Fiscal ROSCs, HIPC AAPs, and EC audits-summarized in the main text of the study and described in more detail in annex 1. Each instruments coverage is mapped in five broad areas: the legal and organizational framework, expenditure programming and budget preparation, budget execution, accounting, reporting and external audit, and administrative and financial management capacity. The 15 main components of these five areas are shown in bold text, and each component is divided into subcomponents-94 in all.

The findings in table A3.1 are based on the guidelines for the instruments, reviews of a sample of assessment reports, and discussions with experts on each instrument.1 (For PERs, which do not have formal guidelines, the findings are based on the coverage of actual reports.) Three levels of coverage are shown for the 15 main components: complete or substantial, partial or moderate, and little or none. For the 94 subcomponents a decision was made about whether each instrument covers or does not cover each subcomponent. A double check-mark indicates that the subcomponent is covered by the instruments guidelines and regularly featured in assessment reports. A single check mark (✓) means that the subcomponent is not covered by the guidelines but is often featured in reports. No judgments were made about the depth of the coverage or the technical quality of the instruments analysis.

As explained in the main text, transparency, accountability, participation, and rule of law are critical cross-cutting issues that apply to all areas of public expenditure management. So, while they are not shown in table A3.1, they are implicit in every component. For example, transparency is a key criterion for assessing budget coverage and external audit. Similarly, some instruments, such as CFAAs, have a strong focus on accountability-while others, such as Fiscal ROSCs, focus on fiscal transparency. Although corruption is not explicitly covered in the table, financial integrity issues are fundamental to the assessment of most components of public expenditure management.

NOTE

1. These sample reports included the following countries: CFAA- Bangladesh, Benin, Bosnia-Herzegovina (BiH), Brazil, Mozambique, Philippines, Turkey, Uganda, Ukraine, Vietnam and Zambia; CPAR-BiH, Philippines, Russia, Turkey, Uganda, and Zambia; PER-BiH, Croatia, Ethiopia, Philippines, Uganda, the Philippines, Tanzania (and sector PERs on Agriculture, Health and Education), Turkey, Vietnam and Zambia; Fiscal ROSC-Bulgaria, Mali, Pakistan, and Turkey; EC Audits-Cameroon, Chad, Cote dlvoire, Ghana, Mozambique and Zambia.