Adequacy and effectiveness of management and control systems in place

Central government bodies perform a self-assessment of their financial management and control systems

Review of data and documentation in a sample of five central government bodies. The sample bodies include three ministries (ministries responsible for health, interior and infrastructure), and two large agencies (tax administration, road administration). If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria. SIGMA reviews the annual report submitted by each of the sample bodies to the body responsible for the co-ordination of internal control, to verify that it includes a self-assessment of the adequacy and effectiveness of financial management and control systems.

The self-assessment by central government bodies includes aspects on performance

Review of data and documentation in a sample of five central government bodies. The sample bodies include three ministries (ministries responsible for health, interior and infrastructure), and two large agencies (tax administration, road administration). If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria. SIGMA reviews the annual report submitted by each of the sample bodies to the body responsible for the co-ordination of internal control, to verify that the evaluation includes aspects on performance issues.

Functioning of internal control in central government bodies

SIGMA reviews the annual report on implementation of PIFC and other information provided by the CHU, to verify the conclusions on functioning of internal control.

The acts for internal organisation establish accountability lines

Results are taken from the organisation, accountability and oversight area, sub-indicator 13.1.7., criterion 2. At minimum the organigrams should not foresee subordination to more than one superior.

A commitment control system is operational

Results are taken from the public financial management area, sub-indicator 24.1.6., criterion 4. Review of financial and compliance audits of the SAI, or other relevant source such as PEFA reports.

Central government bodies with payment arrears (%)

SIGMA reviews the annual report on internal control, the SAI annual report and/or other information provided by the MoF. SIGMA counts the number of central government bodies with payment arrears, divides it by the total number of central government bodies, and expresses the result as a percentage. Points are allocated based on the percentage of central government bodies with payment arrears. • x ≥ 20% = 0 points. • 10% ≤ x < 20% = linear function. • x < 10% = 3 points.

Information on assets is updated annually

Review of data and documentation in a sample of five central government bodies. The sample bodies include three ministries (ministries responsible for health, interior and infrastructure), and two large agencies (tax administration, road administration). If any of the sample bodies does not exist in the country, alternative bodies will be selected to assess the sample-based criteria. The sample budget organisations include three ministries (ministries responsible for finance, interior and infrastructure), and two large agencies (tax administration, road administration). SIGMA reviews the documentation provided by the sample budget organisations to confirm that management has established an asset registry or equivalent, and the information is updated regularly.

Perceived usefulness of internal audit recommendations by senior and middle managers (%)

Analysis of survey responses from a sample of public servants in management positions to the following question or statement: “To what extent do you agree with the following statement: Internal audit recommendations contribute to improving functioning of my organisation.” Answer options are: Strongly disagree, Tend to disagree, Neither disagree nor agree, Tend to agree, Strongly agree, Do not know, Prefer not to answer. Points are allocated based on the percentage of respondents who replied “Tend to agree” and “Strongly agree” to the survey question (x): • x < 10% = 0 points. • 10% ≤ x < 90% = linear function. • x ≥ 90% = 1 point.