- 10 Marks
PSAF – Nov 2021 – L2 – Q3a – Public expenditure and financial accountability framework
Distinguish between the Weakest Link Method and the Average Method in scoring PEFA indicators and compute and interpret the results for three indicators.
Question
One important pillar in Public Financial Management is accounting and financial reporting, according to the Public Expenditure and Financial Accountability (PEFA) Framework of 2016. The pillar has three indicators with ten dimensions scored using the Weakest Link Method (M1) and Average Method (M2).
The information below relates to the scoring of the accounting and reporting pillar for Ghana in the 2019-2020 PEFA Report:
| Pillar (P1-07) | Accounting and Financial Reporting | Score |
|---|---|---|
| Indicator 1 (P1-07.1) | Financial data integrity | To be determined |
| Dimensions (M2) | Bank account reconciliation | D |
| Suspense accounts | D | |
| Advance accounts | A | |
| Financial data integrity process | C | |
| Indicator 2 | In-year budget reports | To be determined |
| Dimensions (M1) | Coverage and comparability of reports | B |
| Timing of in-year budget reports | C | |
| Accuracy of in-budget reports | B | |
| Indicator 3 | Annual financial reports | To be determined |
| Dimensions (M1) | Completeness of annual financial report | C |
| Submission of reports for external audit | B | |
| Accounting standards | D |
Required:
i) Distinguish between the weakest link method and the average method of scoring the performance indicators.
(3 marks)
ii) Compute the score for each of the three indicators using the appropriate method of scoring and interpret your result.
(5 marks)
iii) Suggest TWO (2) ways the government can improve its performance in indicator 3: Annual financial reports.
(2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Average Method, Financial Reporting, PEFA, Public Sector Accounting, Weakest Link Method
- Level: Level 2