Regulatory framework and development policy for internal control

The regulations for implementing internal control are applicable to all central government bodies

Review of the legislation on internal control, either as part of the general PFM legislation or specific on PIFC, to verify that it is applicable to all central government bodies.

Internal control guidelines or instructions are issued, and they apply to all central government bodies

Review of guidelines or formal instructions related to implementation of internal control, to verify that they are applicable across the public administration.

The government has adopted a comprehensive plan for strengthening internal control

Review of the government adopted IC planning document(s) for the last full calendar year, either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they cover the IC area. To be considered “covered”, the area must be a clearly identifiable part of the planning documents (e.g., either a separate strategy or similar document, a chapter or subchapter or similar section) that: 1) analyses the existing situation; 2) sets objectives; and 3) identifies specific reform activities.

The plan for strengthening internal control includes reform activities to enhance managerial accountability across public administration

Review of the government adopted IC planning document(s), either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they include reform activities to enhance managerial accountability across public administration, including accountability mechanisms and objective setting

The plan for strengthening internal control includes reform activities planned for budget management

Review of the government adopted IC planning document(s), either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they include reform activities planned for budget management: planning, execution, accounting, treasury, IT tools, etc.

The plan to strengthen internal control includes activities under the responsibility of agencies/ministries other than the one responsible for PIFC

Review of the government adopted IC planning document(s), either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they include reform activities that are the responsibility of government institutions other than the ministry responsible for internal control.

The plan for strengthening internal control addresses significant cross-cutting risks

Review of the government adopted IC planning document(s), either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they address significant cross-cutting risks. The verification will include not only the pillars related to financial management and control but also other pillars of the PFM reform strategy.

Implementation rate of activities in the plan to strengthen internal control in the last full calendar year (%)

Review of IC planning document(s) and reports. Implementation rate is calculated based on the planned actions of planning documents for the latest full calendar year that are implemented by the end of the latest full calendar year. If there is no information on implementation of the action plan(s), it is assumed that the activities included in the list of planned activities have not been implemented. Activities that are continuous or partially implemented will not be counted. Points are allocated based on the implementation rate of activities in the plan to strengthen internal control (x): • x < 25% = 0 points. • 25% ≤ x < 90% = linear function. • x ≥ 90% = 3 points.