Guidance on Government Annual Financial Reporting on the Modified Cash Basis for Countries of sub-Saharan Africa

Introduction
Accounting Standards for the Public Sector
Timely, clear and open annual financial statements play a significant role in the accountability of governments to their citizens and their elected representatives. The benefits of achieving consistent and comparable financial information across jurisdictions are also important and it is hoped that this Guidance will play a key role in enabling these benefits to be realized. The adoption of this Guidance by governments of sub-Saharan frica will improve both the !uality and comparability of financial information reported by their central government entities. Governments and national standard setters have the right to establish guidelines and accounting standards for financial reporting. This Guidance is an important step forward in improving the consistency and comparability of financial reporting and we encourage the adoption of this Guidance. This Guidance is based on the e"isting good practice across sub-Saharan frica which was identified in a recent study by the frican #apacity $uilding %oundation&. s such, the Guidance is based on a bottom-up study of annual general purpose financial statements as an aid to developing practical international accounting standards for governments. The Guidance is based around the structure of the current #ash $asis '(S S ). 't is hoped that this Guidance will be used to influence accepted good practice across the globe and lead to a review of the #ash $asis '(S S. This Guidance assumes that the modified cash basis of financial reporting is adopted. This is the basis currently adopted by all nglophone governments of sub-Saharan frica and the overwhelming majority governments across the world.

Public sector Accountability and the Role of Financial Statements

long with the auditor*s report, a government*s annual financial statements provide the essential financial data necessary for accountability purposes. 'n a parliamentary democracy, parliament sets the annual budget and so authorises the government to raise ta"es and to spend money as indicated. %or governments, a budget takes on a special legal significance. Governmental budgets are e"pressions of public policy priorities and legally authorize the purposes for which public resources may be raised and spent. The publication of government budgets and then the reporting of actual results against them are the primary method by which citizens and their elected representatives hold governments to account for their financial management. The annual financial statements are the key way in which the government accounts to parliament and its citizens for the ta"es raised, loans contracted, grants received and the money spent on the provision of public services. government*s financial statements +and associated report of the uditor General, indicate how its management of financial resources complied with the annual budget, authorised by (arliament, relevant laws and financial regulations. #itizens and their elected representatives have the right to know whether the government actually used funds and resources in accordance with the approved budget and relevant financial regulations. -emonstrating accountability for compliance with budgetary authority is a distinguishing objective of governmental financial reporting. The aim is to facilitate control by parliament to ensure that all public e"penditure is within the limits set by parliament. %or governments which are dependent on donors for a significant proportion of their revenue, their annual financial statements are also a key document to enable the donor community to monitor adherence to agreed policies. These may include, for e"ample, poverty reduction strategies, the proportion of government e"penditure to be allocated and actually spent on defined pro-poor e"penditure +for e"ample, primary healthcare and education spending,. $ecause revenues raised through governments* power to ta" are e"pected to be used to advance the public interest, the public is entitled to hold governments to a standard of financial accountability that is wider in scope
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ndy .ynne +)/&&, Annual Financial Reporting by Governments - what is Africa s best practice!" frican #apacity $uilding %oundation0 1arare - http022tinyurl.com2esaag)/&) 2 'nternational (ublic Sector ccounting Standards $oard +)//3, )//4, )//5, Financial Reporting #nder the Cash Basis of Accounting, '% #, 6ew 7ork, 'S$60 859-&-83:558-&)-; - http022tinyurl.com2<S G)/&)a

than for private sector companies. ccountability to parliament is the cornerstone of all financial reporting in a representative democracy. Government accountability is based on the belief that citizens and their (arliament have a =right to know,> a right to openly receive financial information that may lead to public debate by the citizens and their elected representatives. ?any of the key users of government financial statements +citizens and their political representatives, are not financially literate and so e"tra effort is needed to make sure the financial statements are accessible, clear and understandable.

Current Good Practice

variety of approaches are currently used by governments of sub-Saharan frica and these approaches have yet to be comprehensively documented and the good practice identified, but all the member countries currently use the modified cash basis for their financial statements. 'n )//4, the <ast and Southern frican ssociation of ccountants General +<S G, supported a study resulting in a %inancial Reporting Survey and $atabase. This was based on broad assessments against the following indicative criteria0 stakeholder support legislative framework underpinning financial reporting financial reporting credibility of financial statements.

This Guidance complements the above previous <S G study. 't also builds on a research report by the frican #apacity $uilding %oundation&. This research included a review of the annual financial statements of a dozen sub-Saharan frican governments and collated e"isting good practice. These countries included eight <S G member countries +$otswana, @enya , ?auritius, 6amibia, Awanda, South frica, Tanzania and Bganda, and four other sub-Saharan frican countries +$urkina %aso, Ghana, 6igeria and Sierra Ceone,.

Broad Indicative Criteria

The following Broad %ndicative Criteria are identified as the key !ualitative characteristics of public sector financial reporting0 timeliness D are the audited financial statements made public promptly after the end of the financial year to which they referE understandability D are the financial statements clear and are the key aspects and terms e"plainedE

openness D is the key financial information of interest to citizens and their elected representatives made
publically availableE consistency is the information consistent from one year to the ne"t, between accounts within the same financial statements and related financial statements and is it reliable and free from material errorE This Guidance identifies good practice in terms of achievement of each of these four !ualitative characteristics of public sector financial reporting.

Benefits
This Guidance should improve the capacity of governments to provide their parliaments, citizens, media and other stakeholders with timely, understandable, open and consistent financial statements. This will improve the !uality of financial accountability and governance in the countries which adopt this Guidance. s a result, public spending should be more effective and focused on key areas of poverty reduction, democracy and development. This Guidance outlines the form and content of comprehensive and clear financial statements. s this is based on e"isting good practice, it is more likely to be practical and attainable than e"isting international standards. 'n addition, this approach should encourage peer review, learning and co-operation as the relevant professionals mutually learn, share and build on each others* good practice. This should be more economic and effective than

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undue reliance on international consultants. This Guidance, if adopted by governments, will increase the level of accountability of these governments to their citizens. 't will also increase the level of comparability of financial statements between governments and so facilitate international comparisons.

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CONTENTS
INTRODUCTION...................................................................................................................................I ACCOUNTING STANDARDS FOR THE PUBLIC SECTOR............................................................................. I PUBLIC SECTOR ACCOUNTABILITY AND THE ROLE OF FINANCIAL STATEMENTS ................................. I CURRENT GOOD PRACTICE.................................................................................................................... II BROAD INDICATIVE CRITERIA............................................................................................................... II BENEFITS................................................................................................................................................ II 1 OVERVIEW........................................................................................................................................1 OBJECTIVE OF THE GUIDANCE...............................................................................................................1 SCOPE OF THE GUIDANCE .....................................................................................................................1 2 THE MODIFIED CASH BASIS.........................................................................................................2 DEFINITIONS...........................................................................................................................................2 CASH EQUIVALENTS..............................................................................................................................3 3 PRESENTATION AND DISCLOSURE REQUIREMENTS..........................................................3 DEFINITIONS...........................................................................................................................................3 POPULAR PRESENTATION OF FINANCIAL STATEMENTS ........................................................................4 COMMENTARY ON THE FINANCIAL STATEMENTS ..................................................................................4 FINANCIAL STATEMENTS.......................................................................................................................5 4 INFORMATION TO BE PRESENTED IN THE STATEMENT OF RECEIPTS AND...............6 PAYMENTS............................................................................................................................................6 CLASSIFICATION.....................................................................................................................................6 LINE ITEMS HEADINGS AND SUB!TOTALS.............................................................................................." REPORTING ON A NET BASIS.................................................................................................................." 5 INFORMATION TO BE PRESENTED IN THE STATEMENT OF FINANCIAL POSITION..8 6 INFORMATION PRESENTED AS ACCOUNTING POLICIES AND E PLANATORY NOTES....................................................................................................................................................8 STRUCTURE OF THE NOTES....................................................................................................................# SELECTION AND DISCLOSURE OF ACCOUNTING POLICIES.....................................................................$ CASH AND BAN% BALANCES..................................................................................................................$ INVESTMENTS OUTSTANDING LOANS ADVANCES IMPREST ETC .........................................................$ DETAILS OF PUBLIC DEBT...................................................................................................................1& ARREARS .............................................................................................................................................1& LOSSES.................................................................................................................................................1& PROCEEDS FROM PRIVATISATION.........................................................................................................11 ACCOUNTING FOR CAPITAL PROJECTS................................................................................................11 SALARIES AND BENEFITS OF SENIOR POLITICIANS AND PUBLIC OFFICIALS.......................................11 ! GENERAL CONSIDERATIONS....................................................................................................11 REPORTING PERIOD..............................................................................................................................11 TIMELINESS..........................................................................................................................................11 AUTHORI'ATION DATE........................................................................................................................12 INFORMATION ABOUT THE ENTITY......................................................................................................12 OPINION OF THE AUDITOR GENERAL ..................................................................................................12 RESTRICTIONS ON CASH BALANCES AND ACCESS TO BORRO(INGS..................................................13 CONSISTENCY OF PRESENTATION........................................................................................................13 COMPARATIVE INFORMATION..............................................................................................................13 IDENTIFICATION OF FINANCIAL STATEMENTS.....................................................................................14 SECRET E)PENDITURE .........................................................................................................................15 DETAILS ON THE PAYMENTS AND RECEIPTS OF PRIMARY SERVICE DELIVERY UNITS..........................15 CORRECTION OF ERRORS.....................................................................................................................15 CONSOLIDATED FINANCIAL STATEMENTS...........................................................................................15

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TREATMENT OF FOREIGN CURRENCY CASH RECEIPTS PAYMENTS AND BALANCES.........................16 8 PRESENTATION OF BUDGET INFORMATION IN FINANCIAL STATEMENTS...............16 DEFINITIONS.........................................................................................................................................16 APPROVED BUDGETS...........................................................................................................................1" ORIGINAL AND FINAL BUDGET............................................................................................................1" ACTUAL AMOUNTS..............................................................................................................................1" PRESENTATION OF A COMPARISON OF BUDGET AND ACTUAL AMOUNTS..........................................1" SCOPE...................................................................................................................................................1# COMPARISON OF BUDGET AND ACTUAL AMOUNTS............................................................................1# LEVEL OF AGGREGATION.....................................................................................................................1# CLASSIFICATION BASIS........................................................................................................................1$ NOTE DISCLOSURES OF BUDGETARY BASIS PERIOD AND SCOPE.......................................................1$ %EY BUDGET DOCUMENTS...................................................................................................................1$ " RECIPIENTS OF E TERNAL ASSISTANCE..............................................................................2# DEFINITIONS.........................................................................................................................................2& E)TERNAL ASSISTANCE.......................................................................................................................2& OFFICIAL RESOURCES..........................................................................................................................2& E)TERNAL ASSISTANCE AGREEMENTS ..............................................................................................21 E)TERNAL ASSISTANCE RECEIVED.....................................................................................................21 ENTITY $URISDICTION..........................................................................................................32

Guidance on Annual Government Financial Reporting on the Modified Cash Basis for Countries of sub-Saharan Africa
&he 'ey aspects of this Guidance" which have been written in bold italic font" should be read in the conte(t of the commentary paragraphs in this Guidance" which are in plain font) An entity whose financial statements comply with the 'ey aspects of this Guidance should disclose that fact) &he financial statements should indicate any 'ey aspects which have not been complied with and e(plain the reasons for any such non-compliance) *ther re+uirements of this Guidance are indicated by the word ,should ) *ther aspects of good practice" which are encouraged" are indicated by the word ,may )

1 Overvie
Ob!ective of the Guidance
&.& The purpose of this Guidance is to describe the manner in which the annual general purpose financial statements of public sector entities should be presented to their parliaments and citizens under the modified cash basis of accounting. &.) Governments usually have a common fund +sometimes called the #onsolidated Aevenue %und, into which all government income is paid. Transfers are made from this fund, with the authority of the annual budget approved by parliament, to ministries, departments and agencies to enable them to provide the agreed public services. Governments should be accountable to parliament for the funds raised and the payments made directly from the #onsolidated Aevenue %und. They are also accountable for the financial management and accounts of individual ministries, departments and agencies that are funded from the government*s annual budget. ccounting Ffficers personally take on this responsibility. They are personally responsible to (arliament and may be called to account for the financial management of their entity to the (ublic ccounts #ommittee. ccounting Ffficers present annual financial statements of their entities to (arliament. The uditor General provides independent assurance to (arliament that the monies utilised by each entity have been raised and spent in line with the annual budget and the relevant laws and financial regulations, where necessary the annual report of the uditor General will also highlight irregularities that have been identified. &.3 #ompliance with the re!uirements of this Guidance will enhance comprehensive and transparent financial reporting by public sector entities. 't will also enhance comparability with the entity*s own financial statements of previous periods and with the financial statements of other entities which adopt this Guidance.

Sco"e of the Guidance

1.4 Central government entities which prepare and presents annual financial statements to account for the monies raised or spent under the authority of its governments annual budget agreed by parliament, should apply the requirements of this Guidance in the presentation of their general purpose annual financial statements prepared under the modified cash basis. &.; General purpose financial statements and the associated reports of the uditor General are the core way in which budget funded ministries, departments and agencies account to parliament for the money they have raised and spent during the relevant financial year. General purpose financial statements include those financial statements that are presented separately or within another public document such as an annual report. &.4 This Guidance applies to both the financial statements of an individual budget funded entity +ministry, department or agency, and to the financial statements of the #onsolidated Aevenue %und +or e!uivalent, from which transfers are made to the individual ministries, departments and agencies. 't re!uires the preparation of a =Statement of Aeceipts and (ayments>, a =Statement of %inancial (osition> and the disclosure of accounting policies and e"planatory notes. &.5 (ersonal accountability is achieved by the appointment of an accounting officer who is personally responsible to parliament for the budget +or vote+s,, for their organisation. The ccountant General is the accounting officer for the #onsolidated Aevenue %und and so is responsible for providing parliament with the financial statements for this %und. ccounting officers are similarly responsible for providing parliament with annual financial statements for the ministry, department or agency for which they are responsible.

&.9 Fther funds may be established under parliamentary authority, for e"ample, a #apital %und or a Aoads %und. 'n each case arrangements should be made to appoint an accounting officer for each of the funds who will be personally responsible to parliament for the financial management of the fund and for presenting annual financial statements for the fund to parliament. This Guidance also applies to the financial statements of such funds. 1.9 n entity whose financial statements comply with the !ey aspects of this Guidance should disclose that fact. "he financial statements should indicate any !ey aspects which have not been complied with and e#plain the reasons for any such non$compliance. &.&/ The key aspects of this Guidance are set in bold italic font. <ntities whose financial statements comply with these key aspects should disclose their compliance with this Guidance. .here an entity is not able to comply with any particular key aspects of this Guidance, this should be disclosed in the notes to their financial statements with a brief e"planation of the reasons for this non-compliance and, where appropriate, future plans to ensure compliance. 1.11 "his Guidance applies to all central government public sector entities other than Government %usiness &nterprises. &.&) The -reface to %nternational Financial Reporting Standards issued by the 'nternational ccounting Standards $oard +' S$, e"plains that 'nternational %inancial Aeporting Standards +'%ASs, are designed to apply to the general purpose financial statements of all profit-oriented entities, these include Government $usiness <nterprises.

# $he %odified Cash Basis

&efinitions
'.1 "he following terms are used in this Guidance with the meaning specified( Cash comprises cash on hand, demand deposits and cash equivalents. )emand deposits and cash equivalents consist of balances with ban!s and investments in short$term money mar!et instruments. *odified cash basis means a basis of accounting that recogni+es transactions and other events when cash is received or paid or under other circumstances as outlined in this Guidance. General purpose financial statements also include additional information on non$cash item as required by this Guidance. Cash equivalents are short$term, highly liquid investments that are readily convertible to !nown amounts of cash and which are sub,ect to an insignificant ris! of changes in value. Cash flows are inflows and outflows of cash. Cash payments are cash outflows as defined in the -inancial .egulations. Cash receipts are cash inflows as defined in the -inancial .egulations. Government %usiness &nterprise means an entity that has all the following characteristics /it may also be termed a parastatal organisation or a state owned enterprise0( /a0 is an entity with the power to contract in its own name1 /b0 has been assigned the financial and operational authority to carry on a business1 /c0 sells goods and services, in the normal course of its business, to the public or private sector entities at a profit or full cost recovery1 /d0 is not reliant on continuing government funding to be a going concern /other than purchases of outputs at arms length01 and

/e0 is controlled by a public sector entity. Modified Cash Basis of Accounting ).) The modified cash basis of accounting recognizes transactions and events only when cash +including cash e!uivalents, is received or paid by the entity. %inancial statements prepared under the modified cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein compared with the annual budget approved by (arliament. 6otes to the financial statements should provide additional information about all material financial assets and financial liabilities, such as government debt, payables and borrowings, and some non-cash assets, such as receivables and investments. ).3 <ach Government has specific rules about the budget year in which a transaction should be recorded which are specified in the relevant financial regulations. This is usually the year in which the funds are received or payments made and recorded in the appropriate financial records. #ash or che!ues received after the end of the financial year will be recorded as income of the following year. #ash payments and che!ue issues usually have to be completed before the end of the final day of the financial year to be accounted for in that year. 1owever, payments may be recorded in the financial year if the goods and services have been officially ordered and received during the financial year, but the payments are made within a specified period +for e"ample, one month, of the beginning of the following financial year.

Cash '(uivalents
).: #ash e!uivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. %or an investment to !ualify as a cash e!uivalent it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Therefore, an investment normally !ualifies as a cash e!uivalent only when it has a short maturity date of, for e"ample, three months or less from the date of ac!uisition. <!uity investments, for e"ample, shares in public or private companies, are e"cluded from cash e!uivalents unless they are, in substance, cash e!uivalents or a short-term loan. ).; $ank borrowings are generally considered to give rise to cash inflows. 1owever, in some jurisdictions, bank overdrafts which are repayable on demand form an integral part of an entity*s cash management. 'n these circumstances, bank overdrafts are included as a component of cash. characteristic of such banking arrangements is that the bank balance often fluctuates from being positive to overdrawn. 'n such cases, any bank overdrafts are netted off against other bank balances and cash holdings and are not reported as cash receipts. ).4 #ash flows e"clude movements between items that constitute cash because these components are part of the cash management of an entity rather than increases or decreases in the cash it controls. #ash management includes the investment of e"cess cash on hand in cash e!uivalents.

) Presentation and &isclosure Re(uirements

&efinitions
2.1 "he following terms are used in this Guidance with the meanings specified( ccountability 3 the obligation to demonstrate that wor! has been conducted in compliance with agreed rules and standards or to report fairly and accurately on performance results against mandated roles and plans. ccounting 4fficer D public official with ultimate responsibility and personal accountability to parliament for the control of a vote /section of the annual budget0 and the financial management of the related public sector entity. *ay be appointed by the "reasury56ermanent 7ecretary in the *inistry of -inance /most senior public official0 or the 6resident of the 7tate. ccounting policies are the specific principles, bases, conventions, rules and practices adopted in preparing and presenting the financial statements of an entity. -inancial assets and financial liabilities are assets or liabilities which are directly measurable in financial terms.

*ateriality( information is material if its omission or misstatement could influence the assessments of users made on the basis of the financial statements. *ateriality depends on the nature or si+e of the item or error ,udged in the particular circumstances of omission or misstatement. 8otes to the financial statements are e#planations or additional disclosures which are not directly part of the main financial statements. .eporting date means the date of the last day of the reporting period to which financial statements relate. 3.) %inancial statements result from processing large !uantities of transactions that are aggregated into groups according to their nature or function. The final stage in the process of aggregation and classification is the presentation of condensed and classified data that form line items either on the face of the financial statements or in the notes. 'f a line item is not individually material, it is aggregated with other items either on the face of the financial statements or in the notes. n item that is not sufficiently material to warrant separate presentation on the face of the financial statements may nevertheless be sufficiently material that it should be presented separately in the notes. 3.3 The principle of materiality provides that the disclosure re!uirements need not be met if the resulting information is not material. ?ateriality covers both the financial significance of transactions and the level of political interest in the subject.

Po"ular Presentation of Financial statements

3.: summary of the main financial statements and other key aspects should be produced as a short popular document of ); pages or less with supporting details available on the 'nternet for those that re!uire them. The full financial statements, as presented to (arliament should also be provided for public download from the main site of the ?inistry of %inance. The summary financial statements should be produced in a well-presented and printed colour publication. 3.; .here appropriate, the financial statements, or at least a summary, should be produced in the main local languages in addition to the official language+s,. lternative presentations may be considered that will increase the openness and understandability of the financial statements by citizens and their elected representatives, this may include presentations for television or radio.

Commentary on the financial statements

3.6 The Accountant General should provide a commentary with the financial statements to explain the context for any significant developments and set the financial results for the year within the context of trends over the last few years. 3.5 The ccountant General should provide an introduction and commentary on the financial statements, the level of budget outturns and recent public financial management reforms. This may be in the form of a management discussion and analysis or similar reports. This may be complemented by the introduction to the annual report of the uditor General. 3.9 The provision of graphs will assist in the assessment and understanding of the financial statements especially where trends over five years or more are provided. The longer-term view of government operations is consistent with focusing on financial trends, rather than on short-term fluctuations. 3.8 #ommentaries should, as far as possible, be written in non-technical language and provide an e"planation of the key terms used in the financial statements. <"planations can be important as many users of public sector financial statements are not technical e"perts or accountants and public sector accounting terms may have specific meaning in different conte"ts or countries. 3.&/ #overing letters from the ?inister of %inance and the Treasury2(ermanent Secretary +most senior civil servant in the ?inistry of %inance, demonstrate that the document is an official report from the government and may detail their respective responsibilities. Such covering letters may also provide background and e"planations of the financial statements in terms of the achievement of the government*s financial policies and programmes. 2.11 "he financial statements should be signed by the relevant ccounting 4fficer.

3.&) %or the financial statements of the #onsolidated Aevenue %und the relevant ccounting Ffficer may be the Secretary to the Treasury or the ccountant General. The financial statements for individual ministries, departments and agencies should be signed by the relevant ccounting Ffficer of the entity.

Financial Statements
2.12 n entity should prepare and present to parliament general purpose financial statements which include the following components( /a0 a statement of receipts and payments showing a comparison of budget and actual amounts1 /b0 a statement of financial position showing financial assets and financial liabilities with comparative figures for the previous financial year1 and /c0 accounting policies and e#planatory notes. 2.14 "he financial statements, especially the statement of financial position, should be presented in the same format as the annual budget agreed by parliament. 3.&; The core purpose of public sector financial statements is to provide a comparison of budget and actual amounts as a key component of accountability of the relevant ccounting Ffficer to (arliament and so plays a key role in the control of the entities financial affairs. %or this reason, the presentation, format and classification +see also :.4 below, of the financial statements should be consistent with the annual budget to ensure that this comparison can be provided simply and clearly. 3.&4 The general purpose financial statements comprise the =Statement of Aeceipts and (ayments>, the =Statement of %inancial (osition> and the accounting policies and e"planatory notes. 3.&5 The =Statement of Aeceipts and (ayments> should include both recurrent and capital transactions which may be disclosed in separate sections of the Statement. .here a separate #apital %und or other funds have been created the financial results of these funds should be disclosed separately in the notes to the financial statements. 3.&9 6otes to the financial statements include narrative descriptions and more detailed schedules or analyses of amounts shown on the face of the financial statements, as well as additional information. The narrative descriptions should e"plain major variations between the approved budget and outturns for major votes, budget heads and sub-heads. They should also include information re!uired and encouraged to be disclosed by this Guidance, and can include other disclosures considered necessary to achieve a clear and understandable presentation and enhance accountability. 3.&8 This Guidance does not preclude an entity from including in its general purpose financial statements, other financial statements in addition to the =Statement of Aeceipts and (ayments> and the =Statement of %inancial (osition>, as specified in paragraph 3.&3 above. #onse!uently, general purpose financial statements may also include additional financial statements which, for e"ample0 +a, report receipts, payments and balances for major fund categories such as the #apital %undG or +b, provide additional information about the sources and deployment of borrowings and the nature and type of cash payments. 3.)/ (ublic sector entities reporting under the modified cash basis of accounting fre!uently provide information on items that would not be recognized under pure cash accounting. <"amples of the type of information that may be provided include details of0 +a, receivables, payables, borrowings and other financial liabilities, non-cash assets and accruing revenues and e"pensesG +b, details of government debtG and +c, commitments and contingent liabilities. 3.)& <ntities preparing general purpose financial statements in accordance with this Guidance may disclose such

information in the notes to the financial statements. .here such disclosures are made they should be clearly described and be readily understandable.

* Information to be Presented in the Statement of Recei"ts and Payments

4.1 "he 97tatement of .eceipts and 6ayments: should provide a clear comparison of actual cash receipts and payments with the budget agreed by parliament and comparative figures for the previous reporting period /see ;.''0, it should also present the following amounts for the reporting period( /a0 total cash receipts of the entity compared to the annual budget agreed by parliament, showing separately a sub$classification of total cash receipts using a classification basis appropriate to the entitys operations1 /b0 total cash payments of the entity compared to the annual budget agreed by parliament, showing separately a sub$classification of total cash payments using a classification basis appropriate to the entitys operations1 and /c0 beginning and closing cash and ban! balances of the entity. 4.' "otal cash receipts and total cash payments, and cash receipts and cash payments for each sub$ classification of cash receipt and payment, should be reported on a gross basis, e#cept that cash receipts and payments may be reported on a net basis when( /a0 they arise from transactions which the entity administers on behalf of other parties and which are recogni+ed in the 97tatement of .eceipts and 6ayments:1 or /b0 they are for items in which the turnover is quic!, the amounts are large, and the maturities are short. 4.2 <ine items, headings and sub$totals should be presented in the 97tatement of .eceipts and 6ayments: when such presentation is necessary to present fairly the entitys cash receipts, cash payments and cash balances. :.: This Guidance re!uires all entities to present a =Statement of Aeceipts and (ayments> which discloses beginning and closing cash balances of the entity, total cash receipts and total cash payments over the reporting period, and major sub-classifications thereof. This will ensure that the financial statements provide comprehensive information about cash received and collected by the entity and how these monies have been used over the period in comparison with the annual budget agreed by (arliament. :.; -isclosure of information about such matters as whether cash is generated from ta"es, fines, fees, and2or borrowings and whether it was e"pended to meet operating costs, for the ac!uisition of capital assets or for the retirement of debt will enhance transparency and accountability of financial reporting.

Classification
:.4 "he classifications used in the financial statements should be the same as those used in the governments annual budget. detailed comparison of sub-classifications of the budget may be provided in the notes to the financial statements or in separate reports which are publically available from the .ebsite of the ?inistry of %inance. :.5 The sub-classifications +or classes, of total cash receipts and payments which should be disclosed in accordance with paragraphs :.& and :.) are a matter of professional judgment. That judgment will be applied in the conte"t of the objective and !ualitative characteristics of financial reporting under the modified cash basis of accounting +see paragraph 4.3,. Total cash receipts may be classified to, for e"ample, separately identify cash receipts from0 ta"ation or appropriationG grants and donationsG borrowingsG proceeds from the disposal of property, plant and e!uipmentG and other ongoing service delivery and trading activities. Total cash payments may be classified to, for e"ample, separately identify cash payments in respect of0 salariesG goods and servicesG ongoing service delivery activitiesG transfers to other governments or entitiesG debt reduction programsG ac!uisitions of property, plant and e!uipmentG and any trading activities. lternative presentations are also possible, for e"ample total cash receipts may be classified by reference to their source and cash payments may be sub-classified by reference to either the nature of the payments or their function or program within the entity, as appropriate.

:.9 summary of total e"penditure analysed by the standard &/ #F%FG functions outlined in the Government Financial Statistics Manual. may assist in the understanding of the relative level of government spending in different areas. This is especially useful for international comparisons as the structure of ministries, departments and agencies is different in each country. See (<% :, ('-; on classification of the budget.

+ine items, headings and sub-totals

:.8 %actors to be taken into consideration in determining which line items, headings and sub-totals should be presented within each sub-classification in accordance with the re!uirements of paragraph :.& above include0 the re!uirements of other sections of this Guidance +for e"ample, paragraph 8.9 re!uires that total e"ternal assistance received in cash during the period be disclosed separately on the face of the =Statement of Aeceipts and (ayments>,G assessments of the likely materiality of the disclosures to usersG and the e"tent to which necessary e"planations and disclosures are made in the notes to the financial statements.

Re"orting on a net basis

:.&/ This Guidance re!uires the reporting of cash receipts, payments and balances on a gross basis e"cept in the circumstances identified by paragraph :.) above and e"plained further below. :.&& ?inistries, departments and agencies may administer transactions and otherwise act as agents on behalf of other entities. These administered and agency transactions may include the collection of revenues on behalf of another entity, the transfer of funds to eligible beneficiaries or the safekeeping of monies on behalf of constituents. <"amples of such activities are0 +a, the collection of ta"es by one level of government for another level of government, not including ta"es collected by a government for its own use as part of a ta" sharing arrangementG +b, the acceptance and repayment of demand deposits of a financial institutionG +c, funds held for customers by an investment or trust entityG +d, rents collected on behalf of, and paid over to, the owners of propertiesG +e, transfers by a government department to third parties consistent with legislation or other government authorityG and +f, funds administered by a central entity under the =single account> basis for management of government e"penditure. :.&) 'n many cases, the cash an entity receives in respect of transactions it administers as an agent for others will be deposited in trust accounts for, or directly in the bank account of, the ultimate recipients of the cash. 'n these cases, the entity will not be responsible to parliament for the cash it receives in respect of the transactions it administers and these cash flows will not form part of the cash receipts, cash payments or cash balances of the entity. 1owever, in other cases the cash received will be deposited in bank accounts of the entity acting as an agent and the receipt and transfer of that cash will be reported in the =Statement of Aeceipts and (ayments> of the entity. :.&3 'n some cases, the amounts of the cash flows arising from administered transactions which =pass-through> the bank account of the reporting entity may be large relative to the entity*s own transactions, and responsibility may occur for only a short time before the amounts are transferred to the ultimate recipients. This may also be true for other cash flows including for e"ample, advances made for, and the repayment of0 +a, the purchase and sale of investmentsG and +b, other short-term borrowings, for e"ample, those which have a maturity period of three months or less. :.&: The recognition of these transactions on a gross basis may undermine the ability of the financial statements
3 4

I+,-.+/,i0+/1 M0+-,/.2 F3+4 52&&"6 Manual on Fiscal Transparency IMF7 (/89i+:,0+ DC 5P/:- "66 PEFA 52&&56 Public Financial Management Performance Measurement Framework P3;1i< E=>-+4i,3.- /+4 Fi+/+<i/1 A<<03+,/;i1i,2 5PEFA6 S-<.-,/.i/,7 (/89i+:,0+ DC

"

of some governments and government entities to communicate information about cash receipts and cash payments resulting from the entity*s own activities. ccordingly, this Guidance permits cash receipts and cash payments to be offset and reported on a net basis in the =Statement of Aeceipts and (ayments> in the circumstances identified in paragraph :.&& above.

. Information to be Presented in the Statement of Financial Position

=.1 "he :7tatement of -inancial 6osition: should provide a clear comparison of actual financial assets and financial liabilities at the end of the reporting period with those of the previous period. Changes from one period to the other should be clearly e#plained by the 97tatement of .eceipts and 6ayments:. "he 97tatement of -inancial 6osition: should also present the following amounts for the reporting period( /a0 total financial assets of the entity showing separately the following balances and a sub$classification using a classification basis appropriate to the entitys operations( /i0 /ii0 /ii0 cash, including cash equivalents and ban! balances of the entity1 receivables1 and advances, loans and investments1

/b0 total financial liabilities of the entity showing separately the following balances and a sub$classification using a classification basis appropriate to the entitys operations( /i0 public debt and loans received analysed to show total domestic debt and total debt denominated in foreign currencies1 and /ii0 sundry creditors1

/c0 net assets and the funds by which these are represented including the Consolidated .evenue -und and other funds as appropriate. 5.2 C/89 /+4 </89 -?3i*/1-+,8 <0@>.i8- </89 0+ 9/+4 ;/+A ;/1/+<-8 /+4 4->08i,8 9-14 0,9-. 890.,!,-.@ 9i:912 1i?3i4 i+*-8,@-+,8 /+4 ;/+A 0*-.4./B,8. 5.3 Aeceivables arise from cash payments made that are recoverable from another party, for e"ample,

ta"es collected by the Aevenue gency but not paid into the #onsolidated Aevenue %und. ;.: dvances are imprest and other advances made to public officials which had yet to be retired at the end of the reporting period. Coans outstanding are those made to public officials, politicians and others. 'nvestments in Government $usiness <nterprise +parastatal organisations, or private companies are shown at the cost of ac!uisition. ;.; (ublic debt and loans received are presented at the historic cost of the debt or loan. -ebt and loans denominated in foreign currency are converted at the closing e"change rate at the end of the period +see paragraph 5.:8 below,.

/ Information Presented as Accounting Policies and '0"lanatory 1otes

Structure of the 1otes
>.1 "he notes to the financial statements of an entity should( (a) present information about the basis of preparation of the financial statements and the specific accounting policies selected and applied for significant transactions and other events and

(b) provide additional information which is not presented on the face of the financial statements but is necessary for a fair presentation of the entity!s cash receipts" cash payments and cash balances and ade#uately account to $arliament for the funds received and disbursed. 6.% &otes to the financial statements should be presented in a systematic manner. 'ach item on the face of the 97tatement of .eceipts and 6ayments: and other financial statements should be cross referenced to any related information in the notes.

Selection and &isclosure of Accounting Policies

6.3 General purpose financial statements should present information that is( timely 3 the audited financial statements are made public promptly after the end of the financial year to which they refer understandable 3 the financial statements are clear and the !ey aspects and terms are e#plained open 3 the !ey financial information of interest citi+ens and their elected representatives is made publically available consistent 3 the information is consistent from one year to the ne#t, between accounts within the same financial statements and between related financial statements and is it reliable and free from material error. 6.4 T9- ?3/1i,2 0B i+B0.@/,i0+ >.0*i4-4 i+ :-+-./1 >3.>08- Bi+/+<i/1 8,/,-@-+,8 4-,-.@i+-8 ,9- 38-B31+-88 0B ,9088,/,-@-+,8 ,0 38-.8. P/./:./>9 6.3 .-?3i.-8 ,9- 4-*-10>@-+, 0B /<<03+,i+: >01i<i-8 ,0 -+83.- ,9/, ,9- Bi+/+<i/1 8,/,-@-+,8 >.0*i4- i+B0.@/,i0+ ,9/, @--,8 / +3@;-. 0B ?3/1i,/,i*- <9/./<,-.i8,i<8. 6.) The accounting policies section of the notes to the financial statements should describe each specific accounting policy that is necessary for a proper understanding of the financial statements. 6.6 *nappropriate accounting treatments are not rectified either by disclosure of the accounting policies used" or by notes or explanatory material. 6." I+ 4-<i4i+: C9-,9-. / 8>-<iBi< /<<03+,i+: >01i<2 890314 ;- 4i8<108-4 A<<03+,i+: OBBi<-.8 890314 <0+8i4-. C9-,9-. 4i8<1083.- C0314 /88i8, 38-.8 i+ 3+4-.8,/+4i+: ,9- C/2 i+ C9i<9 ,./+8/<,i0+8 /+4 -*-+,8 /.- .-B1-<,-4 i+ ,9- .->0.,-4 Bi+/+<i/1 8,/,-@-+,8. n accounting policy may be significant even if amounts shown for current and prior periods are not material.

Cash and ban2 balances

>.? "he notes to the financial statements should provide details of cash and cash equivalents held and the balances held at the Central %an! and the total balances of accounts held at other ban!s 4.8 -etails of cash balances held by each ministry, department and agency should be provided. $alances of the various accounts in the #entral $ank and totals for the accounts with individual public and commercial banks should be provided. Summary details should be provided in the financial statements of the #onsolidated Aevenue %und with more details of balances in individual bank accounts provided in the financial statements of the individual ministries, departments and agencies.

Investments, outstanding loans, advances, im"rest etc

>.1@ "he notes to the financial statements should provide details of investments, outstanding loans, advances, imprests and other monies which may be owed to the government. )etails should also be provided of any suspense accounts which have not been cleared. 4.&& -etails should be provided of public investments in individual public agencies, parastatal organisations and private companies. This should include any subsidies provided for the current and previous years, the percentage of the government*s holding and its value at historic cost for the current and previous years. 4.&) -etails should be provided of any loans issued to individual public agencies, parastatal organisations or

private companies. 4.&3 Summaries should be provided of outstanding advances, loans or unretired imprests provided to officials and politicians by each ministry, department and agency. n analysis should be provided to show the main types and the amount written off during the year if any. The financial statements of individual ministries, departments and agencies should include details of loans to each individual person or entity, the amount loaned and repaid, and the amount yet to be paid. >.14 "he notes to the financial statements should provide details of contingent liabilities 4.&; -etails should be provided of contingent liabilities outstanding showing the nature +loan guarantees, e"port credit guarantees, court cases etc, ma"imum liability and possible current outstanding value. The amounts of any contingent liabilities should be analysed to show the agency, parastatal organisation or private company involved. -etails should be provided of any foreign currency implications. 4.&4 -etails should be provided of any significant court cases outstanding against public sector entitiesG these should include the name of the entity, brief details of the cases and the possible value of the liabilities.

&etails of Public &ebt

>.1; "he notes to the financial statements should provide details of the total of domestic debt and the total debt denominated in each significant foreign currency. )etails should also be provided of each individually material debt or loan agreement indicating the provider, original value, the amount outstanding at the end of the period, the interest rate and the remaining term of the debt. >.1? n entity should disclose in the notes to the financial statements the amount of debt cancelled during the period. 6.1$ A 1i8,i+: 890314 ;- >.0*i4-4 0B /11 @/,-.i/1 i+4i*i43/1 4-;,8 890Ci+: ,9- >.0*i4-. 0B ,9- 4-;, ,9- /@03+, 03,8,/+4i+: /+4 ,9- <3..-+, ./,-8 0B i+,-.-8,. A 83@@/.2 0B ,0,/1 :0*-.+@-+, 4-;, /+/128-4 i+,0 40@-8,i< /+4 B0.-i:+ 4-;, 890314 ;- >.0*i4-4 <0*-.i+: /, 1-/8, ,9- 1/8, Bi*- 2-/.8. 6.2& D-,/i18 @/2 ;- >.0*i4-4 0B /11 i883-8 0B T.-/83.2 Bi118 /+4 B0+48 i+<134i+: i+,-.-8, ./,-8. A1,-.+/,i*-12 83<9 4-,/i18 @/2 ;- .->0.,-4 ;2 ,9- C-+,./1 B/+A iB ,9-8- i8 ,9- </8- ,9- Bi+/+<i/1 8,/,-@-+,8 890314 >.0*i4- 4-,/i18 0B C9-.- 83<9 i+B0.@/,i0+ i8 >3;1i</112 .->0.,-4. (9-.- />>.0>.i/,- 83<9 4-,/i18 @/2 ;- /::.-:/,-4 ,0 890C /*-./:- i+,-.-8, ./,-8 /+4 4/,-8 0B .-4-@>,i0+. 4.)& n entity e"periencing difficulty in servicing its e"ternal assistance debt may seek renegotiation of the terms and conditions of the debt or cancellation of the debt. The amount of any debt cancelled during the period should be disclosed in the notes to the financial statements to e"plain material reductions in the level of government debt.

Arrears
6.22 A 83@@/.2 890314 ;- >.0*i4-4 0B /+2 /..-/.8 0B .-*-+3-8 B3.,9-. 4-,/i18 890314 ;- >.0*i4-4 B0. ,9- @/i+ ,2>-8 0B ,/=-8 /+4 +0+!,/= .-*-+3- Ci,9 ,9- 1/,,-. 4-,/i1-4 ;2 @i+i8,.2 4->/.,@-+, /+4 /:-+<2. C0@>/./;1Bi:3.-8 890314 ;- >.0*i4-4 B0. ,9- 1/8, Bi+/+<i/1 2-/.. 6.23 T9- ,0,/1 */13- 0B >/2@-+, /..-/.8 5>/2@-+,8 +0, @/4- Ci,9i+ $& 4/28 0B ,9- .-<-i>, 0B ,9- :0048 0. 8-.*i<-8 0. +0, @/4- Ci,9i+ ,9- /:.--4 ,i@-8</1-6 890314 ;- >.0*i4-4 Ci,9 ,0,/1 */13- B0. -/<9 @i+i8,.2 4->/.,@-+, /+4 /:-+<2 /+/128-4 i+,0 8/1/.2 /..-/.8 5i+<134i+: >-+8i0+ /..-/.86 /+4 83>>1i-8 5:0048 8-.*i<-8 /+4 <0+8,.3<,i0+ C0.A86. C0@>/./;1- Bi:3.-8 890314 ;- >.0*i4-4 B0. ,9- 1/8, Bi+/+<i/1 2-/.. 6.24 P/2@-+, /..-/.8 /.- /+ /.-/ 0B i+,-.-8, /, 1-/8, B0. ,9- 40+0. <0@@3+i,2 /+4 /.- <0*-.-4 i+ PI!4 0B ,9- PEFA B./@-C0.A.

+osses
6.25 T9- Bi+/+<i/1 8,/,-@-+,8 0B ,9- C0+801i4/,-4 R-*-+3- F3+4 890314 i+<134- /8 +0,-8 ,0 ,9- /<<03+,8 83@@/.i-8 0B .->0.,-4 1088-8 /+4 ,908- C.i,,-+ 0BB 0. /;/+40+-4 Ci,9 4-,/i18 ;2 @i+i8,.2 4->/.,@-+, /+4 /:-+<2. T9- Bi+/+<i/1 8,/,-@-+,8 0B i+4i*i43/1 @i+i8,.i-8 4->/.,@-+,8 /+4 /:-+<i-8 890314 >.0*i4- B3.,9-. 4-,/i18 0B 1088-8 0B >3;1i< @0+-2 Ci,9 4/,-8 -=>1/+/,i0+8 0B >/.,i<31/.8 /+4 +/,3.- 0B -/<9 1088 /+4 ,9- */13- 0B ,9- 1088 .-<0*-.-4 0. C.i,,-+ 0BB.

1&

6.26 L088-8 @/2 i+<134- ,9-B,8 C.i,-!0BB8 0B 4-;,8 0. 10/+8 -=<9/+:- 1088-8 <0@>-+8/,i0+ >/2@-+,8 :iB,8 /+4 B.3i,1-88 0. C/8,-B31 -=>-+4i,3.- 5+3:/,0.2 >/2@-+,86. T9- 1/C8 /+4 .-:31/,i0+8 0B -/<9 <03+,.2 4-,-.@i+- C9/, <0+8,i,3,-8 / 1088.

Proceeds from "rivatisation

6.2" The proceeds received from the privatisation of individual agencies or public enterprises should be disclosed. ny amounts outstanding, the name of the company, the investor, year of privatisation, cost and amounts paid with the balance outstanding at start and end of the year with brief remarks should be disclosed.

Accounting for Ca"ital Pro!ects

4.)9 -etails of development e"penditure to date should be provided by project and should be compared to Total <stimated #ost. The previous years* e"penditure on each material project should also be disclosed. This will show the total costs to date of individual development or capital projects compared with the overall budget for the project which may cover several years, rather than just the results for the particular reporting period. These details may be provided in the individual financial statements of ministries, departments and agencies rather than in the financial statements of the #onsolidated Aevenue %und.

Salaries and Benefits of Senior Politicians and Public Officials

>.'9 n entity should disclose in the notes to the financial statements the salaries and benefits of senior politicians and senior public officials 4.3/ The annual salaries and other significant benefits of senior politicians and public officials should be disclosed in the notes to the financial statements of each entity. This should include, for e"ample, government ministers, permanent secretaries, directors and other heads of ministries, departments and agencies. 4.3& The assets of senior politicians and senior public officials +and their spouses and children, are often published when they enter office, annually +for as long as they are in office, and when they leave office. -etails of how these asset registers may be accessed and reviewed by the public +if this is legally permissible, should be included in the notes to the financial statements.

3 General Considerations
Re"orting Period
;.1 "he general purpose financial statements should be presented to 6arliament annually. Ahen, in e#ceptional circumstances, an entitys reporting date changes and the annual financial statements are presented for a period longer or shorter than one year, an entity should disclose in addition to the period covered by the financial statements( /a0 the reason/s0 for a period other than one year being used1 and /b0 the fact that comparative amounts may not be comparable. 5.) The reporting date is the date of the last day of the reporting period to which the financial statements relate. 'n e"ceptional circumstances an entity may be re!uired to, or decide to, change its reporting date to, for e"ample, align the reporting cycle more closely with the budgeting cycle. .hen this is the case, it is important that the reason for the change in reporting date is disclosed and that users are aware that the amounts shown for the current period and the comparative amounts are not comparable. 5.3 6ormally, the financial statements are consistently prepared covering a one-year period. 1owever, some entities prefer to report, for e"ample, for a ;) week period for practical reasons. This Guidance does not preclude this practice, as the resulting financial statements are unlikely to be materially different from those which would be presented for one year.

$imeliness
;.2 "he audited financial statements should be presented to 6arliament within nine months of the end of period to which they refer.

11

5.: The usefulness of the financial statements are impaired if they are not made available to users within a reasonable period after the reporting date. n entity should be in a position to issue its audited financial statements within nine months of the reporting date. This should enable the audited financial statements for the previous year to be presented to parliament before the debate on the following year*s budget. 5.; The timeliness of information may impact upon both the relevance and reliability of the financial information. The maintenance of complete and accurate accounting records during the reporting period is essential for timely production of annual financial statements. .here governments do not submit their audited financial statements to (arliament within nine months of the reporting date +or at the very least &) months,, then timeliness will be the key priority in terms of improvements to the financial statements. 5.4 Timeliness has to be balanced with other factors such as cost, degree of consolidation and the detailed information provided. 'f the provision of additional information means that the financial statements are not provided in a timely manner, then the value of such information should be critically evaluated. Fne of the major benefits of the modified cash basis of accounting is that the financial statements can be produced relatively !uickly and cheaply. This benefit may be lost if fully consolidated financial statements are produced, for e"ample, for all central government ministries, departments and agencies. 5.5 The audited annual financial statements should be made available to the public as soon as possible after they have been presented to (arliament. The audited financial statements should be made available to the media, on the website of the ?inistry of %inance, in university and other libraries and for purchase from the government printers2bookshop +if a charge is made for these financial statements, it should be modest and affordable by general citizens,. Greater details may be provided in the disclosures on the website of the ?inistry of %inance, for e"ample, payment by local service units +see 5.35 below,.

Authori4ation &ate
;.? n entity should disclose the date when the financial statements were authori+ed for issue and who gave that authori+ation. 5.8 The authorization date is the date on which the financial statements were approved by the individual or body with the authority to finalize those statements for issue. 't is important for users to know when the financial statements were authorized for issue, because the financial statements do not reflect events after this date.

Information about the 'ntity

;.1@ n entity should disclose the following, as notes to the financial statements, if not disclosed elsewhere in information published with the financial statements( /a0 the domicile and legal form of the entity, and the ,urisdiction within which it operates1 /b0 a description of the nature of the entitys operations and principal activities1 and /c0 a reference to the relevant legislation governing the entitys financial statements and operations. 5.&& The disclosure of the information re!uired by paragraph 5.&/ will enable users to identify the nature of the entity*s operations and gain an understanding of the legislative and institutional environment within which it operates.

O"inion of the Auditor General

;.1' "he opinion of the uditor General should be provided in the same document and alongside the financial statements. 5.&3 The annual report of the uditor General is a key document complementing the financial statements to ensure ade!uate accountability of the government and individual ccounting Ffficers to parliament for their financial management. The opinion of the uditor General on the financial statements should be provided alongside the financial statements. 'n addition, details should be provided on how the full annual report of the uditor General may be accessed. 5.&: The financial statements are undermined if the associate report of the uditor General indicates significant irregularities or weaknesses in internal financial control. Steps should be taken to reduce the number irregularities reported by the uditor General

12

Restrictions on Cash Balances and Access to Borro ings

5.&; n entity should disclose in the notes to the financial statements together with a commentary, the nature and amount of0 +a, significant cash balances that are not available for use by the entityG +b, significant cash balances that are subject to e"ternal restrictionsG and +c, undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments, indicating any restrictions on the use of these facilities. 5.&4 #ash balances held by an entity would not be available for use by the entity when, for e"ample, an entity operates in a country where e"change controls or other legal restrictions apply and the balances are not available for general use by the controlling entity or other controlled entities. 5.&5 #ash balances may be subject to restrictions which limit the purpose or timing of their use. This situation often e"ists when an entity receives a grant or donation which must be used for a specific purpose. 't may also e"ist where, at reporting date, an entity holds in its own bank accounts cash it has collected for other parties in its capacity as an agent but not yet transferred to those parties.

Consistency of Presentation
;.1? "he format, presentation and classification of items in the financial statements should be retained from one period to the ne#t unless( /a0 a significant change in the nature of the operations of the entity or a review of its financial statements presentation demonstrates that the change will result in a more appropriate presentation of events or transactions /b0 the relevant laws or regulations require such changes1 or /c0 a change in presentation is required by a future amendment to this Guidance. 5.&8 major restructuring of service delivery arrangementsG the creation of a new, or termination of a major e"isting, government entityG a significant ac!uisition or disposalG or a review of the overall presentation of the entity*s general purpose financial statements might suggest that the =Statement of Aeceipts and (ayments> or other individual financial statements should be presented differently. 5.)/ Fnly if the revised structure is likely to continue, or if the benefit of an alternative presentation is clear, should an entity change the presentation of its financial statements. .hen such changes in presentation are made, an entity reclassifies its comparative information in accordance with paragraph 5.&9. 5.)& Technical terms and the !uantitative figures should be consistent between the different financial statements and the notes to the accounts. Huantitative figures should also be consistent between, for e"ample, the financial statements for the #onsolidated Aevenue %und and the financial statements for individual ministries, departments and agencies. This should include, for e"ample, a consistent value and definition of Icash and cash e!uivalents* and Isurplus2deficit*. .here there are differences in the values of transactions or balances between financial statements these should be clearly e"plained and reconciled. The #onsolidated Aevenue %und should disclose the funds transferred to each ministry, department and agency. These same figures should appear in the financial statements of the ministries, departments and agencies as receipts from the #onsolidated Aevenue %und.

Com"arative Information
;.'' Comparative information should be disclosed in respect of the previous period for all numerical information required by this Guidance to be disclosed in the financial statements. Comparative information should be included in narrative and descriptive information when it is relevant to an understanding of the current periods financial statements. 5.)3 This Guidance re!uires the presentation of a =Statement of Aeceipts nd (ayments> and a =Statement of %inancial (osition>. 't also specifies certain disclosures that are re!uired to be made in these statements and the associated notes. 'n each of these cases, comparative information in respect of the previous period or financial year should be provided.

13

5.): This Guidance does not preclude the preparation of additional financial statements. .here such financial statements are prepared the disclosure of comparative information is encouraged. 5.); 'n some cases, narrative information provided in the financial statements for the previous period+s, continues to be relevant in the current period. %or e"ample, details of a legal dispute, the outcome of which was uncertain at the last reporting date and is yet to be resolved, may be disclosed in the current period. Bsers benefit from knowing that the uncertainty e"isted at the last reporting date, and the steps that have been taken during the period to resolve the uncertainty. 5.)4 'n many cases the disclosure of longer term trends +of five years or more, are helpful in understanding the financial position of public sector entities. #omparative information on the main trends for the key aspects of the entities payments, receipts and financial position should be disclosed to provide a deeper understanding of the medium term trends and to put the current results in perspective. ;.'; Ahen the presentation or classification of items required to be disclosed in the financial statements is amended, comparative amounts should be reclassified, unless it is impracticable to do so, to ensure comparability with the current period, and the nature, amount of, and reason for any reclassification should be disclosed. Ahen it is impracticable to reclassify comparative amounts, an entity should disclose the reason for not reclassifying and the nature of the changes that would have been made if amounts were reclassified. 5.)9 #ircumstances may e"ist when it is impracticable to reclassify comparative information to achieve comparability with the current period. %or e"ample, data may not have been collected in the previous period+s, in a way which allows reclassification, and it may not be practicable to recreate the information. 'n such circumstances, the nature of the adjustments to comparative amounts that would have been made is disclosed.

Identification of Financial Statements

;.'9 "he financial statements should be clearly identified and distinguished from other information in the same published document. 5.3/ This Guidance applies only to the financial statements, and not to other information presented in an annual report or other document. Therefore, it is important that users are able to distinguish information that is prepared using this Guidance from other information that may be useful to users but that is not the subject of this Guidance. ;.21 &ach component of the financial statements should be clearly identified. Bn addition, the following information should be prominently displayed and repeated when it is necessary for a proper understanding of the information presented( /a0 the name of the reporting entity or other means of identification1 /b0 whether the financial statements cover an individual entity or a group of entities1 /c0 the reporting date or the period covered by the financial statements, whichever is appropriate to the related component of the financial statements1 /d0 the reporting currency1 and /e0 the level of precision used in the presentation of figures in the financial statements. 5.3) The re!uirements in paragraph 5.3& are normally met by presenting page headings and abbreviated column headings on each page of the financial statements. Judgment is re!uired in determining the best way of presenting such information. 5.33 %inancial statements are often made clearer and more understandable by presenting information in thousands or millions of units of the reporting currency +rounded to the nearest whole number,. This is acceptable as long as the level of precision in presentation is disclosed and relevant information is not lost. 5.3: -etails should be provided of the entities whose results are included within the financial statements. -etails should also be provided of any significant entities which are e"cluded.

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Secret e0"enditure
;.2= )etails of secret e#penditure may not be provided in full in the financial statements or not in the level of detail provided for other e#penditure. Ahere this is the case, summary details should be provided with a brief e#planation of why such information is not being provided. 5.34 Secret e"penditure may relate to, for instance, national security and military intelligence. The total payments made for such services should be provided in the financial statements, but the same level of sub-categories of payments may not be provided as for other public services. The financial statements should indicate where such summarised financial information is being provided and the services or entities which are involved.

&etails on the "ayments and recei"ts of "rimary service delivery units

;.2; )etails of the payments and receipts of primary service delivery units should be made public. 5.39 -etails of the payments and receipts of primary service delivery units +health clinics and primary schools, for e"ample, should be reported, although not necessarily as part of annual general purpose financial statements. Such details may be provided on the 'nternet and the financial statements should indicate where this information may be found. This information may be provided in local languages. 5.38 Transfers to local authorities +and other sub-national entities, should be disclosed in the annual financial statements of the central Government and promptly each !uarter on the website of the ?inistry of %inance, with a breakdown by recipient and type of transfer.

Correction of 'rrors
;.4@ Ahen an error arises in relation to a cash balance reported in the financial statements, the amount of the error that relates to prior periods should be reported by ad,usting the cash at the beginning of the period. Comparative information should be restated, unless it is impracticable to do so. ;.41 n entity should disclose in the notes to the financial statements the following( /a0 the nature of the error1 /b0 the amount of the correction1 and /c0 the fact that comparative information has been restated or that it is impracticable to do so. 5.:) <rrors in the preparation of the financial statements of one or more prior periods may be discovered in the current period. <rrors may occur as a result of mathematical mistakes, mistakes in applying accounting policies, misinterpretation of facts, fraud or oversights. .hen an error is identified in respect of a previous period, the opening balance of cash is adjusted to correct the error and the financial statements, including the comparative information for prior periods, is presented as if the error had been corrected in the period in which it was made. n e"planation of the error and its adjustment is included in the notes. 5.:3 The restatement of comparative information does not necessarily give rise to the amendment of financial statements which have been approved by the governing body or registered or filed with regulatory authorities. 1owever, national laws may re!uire the amendment of such financial statements.

Consolidated Financial Statements

;.44 Ahere combined or consolidated financial statements are provided covering more than one entity, the nature of the consolidation and the entities which are consolidated should be clearly disclosed. 5.:; Some countries provide aggregated, combined or consolidated financial statements of one sort or another. .here such statements are provided, there should be clarity about what is meant by consolidation and which entities are included within the consolidation. %inancial statements covering more than one entity should list clearly the types of entities which are included, list the individual entities which are covered by the financial statements and should e"plain clearly the nature of the consolidation. 5.:4 The annual general purpose financial statements are key documents for the accountability of governments and specifically ccounting Ffficers to parliament. They may also facilitate greater financial control. The #onsolidated Aevenue %und and each of the ministries, departments and agencies should have an ccounting

15

Ffficer who is personally accountable to (arliament for the financial management of these entities. Thus a set of financial statements is presented to (arliament by each of the ccounting Ffficers. 'f consolidated financial statements are produced for a range of such entities then the accountabilities of the relevant ccounting Ffficers for each individual entity have to be clearly retained and e"plained. 5.:5 gencies and other entities may be established which are related to or are overseen by a ministry, but have a degree of autonomy. The financial results of all such agencies or other public bodies should be reported to parliament. This may be achieved by providing a separate set of financial statements for the agency or by consolidating the financial results of the agency within the financial statements of the related ministry or department. 5.:9 The benefits and usefulness of consolidating the accounts of parastatal organisations or sub-national government with those of national government ministries, departments and agencies is not clear and may adversely effect the timeliness of the submission of the financial statements or distort the financial results disclosed in these statements.

$reatment of Foreign Currency Cash Recei"ts, Payments and Balances

;.49 Cash receipts and payments arising from transactions in a foreign currency should be recorded in an entitys reporting currency by applying to the foreign currency amount the e#change rate between the reporting currency and the foreign currency at the date of the receipts and payments. ;.=@ Cash balances held in a foreign currency should be reported using the closing rate at the end of the reporting period. ;.=1 n entity should disclose the amount of e#change differences included as reconciling items between opening and closing cash balances for the period. ;.=' Ahen the reporting currency is different from the currency of the country in which the entity is domiciled, the reason for using a different currency should be disclosed. "he reason for any change in the reporting currency should also be disclosed. 5.;3 Governments and government entities may have transactions in foreign currencies such as borrowing an amount of foreign currency or purchasing goods and services where the purchase price is designated as a foreign currency amount. They may also have foreign operations and transfer cash to and receive cash from those foreign operations. 'n order to include foreign currency transactions and foreign operations in financial statements the entity must e"press cash receipts, payments and balances in reporting currency terms. 5.;: Bnrealized gains and losses arising from changes in foreign currency e"change rates are not cash receipts and payments. 1owever, the effect of e"change rate changes on cash held in a foreign currency is reported in the =Statement of Aeceipts and (ayments> in order to reconcile cash at the beginning and the end of the period. This amount is presented separately from cash receipts and payments and includes the differences, if any, had those cash receipts payments and balances been reported at end-of-period e"change rates.

5 Presentation of Budget Information in Financial Statements

&efinitions
?.1 "he following terms are used in this Guidance with the meanings specified( nnual budget means an approved budget for one year. Bt does not include published forward estimates or pro,ections for periods beyond the budget period. ppropriation is an authori+ation granted by a legislative body to allocate funds for purposes specified by the legislature or similar authority. pproved budget means the authority derived from laws, appropriation bills, government ordinances and other decisions related revenue and receipts for the budgetary period. Comparable basis means the actual amounts presented on the same accounting basis, same classification basis, for the same entities and for the same period as the approved budget.

16

-inal budget is the original budget ad,usted for all reserves, carry over amounts, transfers, allocations, supplemental appropriations, and other authori+ed legislative or similar changes applicable to the budget period. 4riginal budget is the initial budget approved by the 6arliament for the budget period.

A""roved Budgets
9.) n approved budget as defined by this Guidance reflects the anticipated revenues or receipts e"pected for the annual budget period based on current plans and the anticipated economic conditions during that budget period, and e"penses or e"penditure approved by (arliament. n approved budget is not a forward estimate or a projection based on assumptions about future events and possible management actions which is reported to (arliament. 9.3 'n some jurisdictions, budgets may be signed into law as part of the approval process. 'n other jurisdictions, approval may be provided without the budget becoming law. .hatever the approval process, the critical feature of approved budgets is that the authority to withdraw funds from the government treasury or similar body for agreed and identified purposes is provided by a higher legislative body or other appropriate authority. The approved budget establishes the authority limits for specific items of receipts or payments. The authorised e"penditure is generally considered to be the legal limit within which an entity must operate. 'n some jurisdictions, the approved budget for which the entity will be held accountable may be the original budget and in others it may be the final budget. 9.: 'f a budget is not approved prior to the beginning of the budget period, the original budget is the budget that was first approved for application in the budget year.

Original and Final Budget

9.; The original budget may include residual appropriated amounts automatically carried over from prior years by law. %or e"ample, governmental budgetary processes in some jurisdictions include a legal provision that re!uires the automatic rolling forward of appropriations to cover prior year commitments. #ommitments encompass possible future liabilities based on a current contractual agreement. 'n some jurisdictions, they may be referred to as obligations or encumbrances and include outstanding purchase orders and contracts where goods or services have not yet been received. 9.4 Supplemental appropriations may be necessary where the original budget did not ade!uately envisage e"penditure re!uirements arising from, for e"ample, war or natural disasters. 'n addition, there may be a shortfall in budgeted receipts during the period, and internal transfers between budget heads or line items may be necessary to accommodate changes in funding priorities during the fiscal period. #onse!uently, the funds allotted to an entity or activity may need to be cut back from the amount originally appropriated for the period in order to maintain fiscal discipline. The final budget includes all such authorized changes or amendments.

Actual Amounts
9.5 This Guidance uses the term =actual> or =actual amounts> to describe the amounts that result from e"ecution of the budget. 'n some jurisdictions, =budget out-turn>, =budget e"ecution> or similar terms may be used with the same meaning as =actual> or =actual amounts>.

Presentation of a Com"arison of Budget and Actual Amounts

?.? n entity should present a comparison of the budget amounts and actual amounts as separate columns in the 97tatement of .eceipts and 6ayments: presented in accordance with this Guidance. "he comparison of budget and actual amounts should be present separately for each level of legislative oversight /ministry, department, section, subhead etc0( /a0 "he original and final budget amounts1 /b0 "he actual amounts on a comparable basis1 and /c0 %y way of note disclosure, an e#planation of material differences between the budget for the entity and actual amounts, unless such e#planation is included in other public documents issued in con,unction with the financial statements, and a cross reference to those documents is made in the notes to the financial statements.

1"

9.8 The fundamental purpose of financial reporting in the public sector is to fulfil the financial accountability responsibilities of ccounting Ffficers to (arliament. Thus the key re!uirement is for the financial statements to provide a clear comparison of the payments and receipts actually undertaken to the comparable amounts in the annual budget agreed by (arliament. .here there are material differences between the actual and budgeted amounts, these variances should be clearly e"plained in the notes to the financial statements. This will allow citizens and their elected representatives to understand the reasons for any divergences between the budgeted and actual figures. This is especially important where payments have been made in e"cess of the budgeted figures agreed by (arliament.

Sco"e
9.&/ 'n some cases, approved budgets will be compiled to encompass all the activities controlled by a public sector entity. 'n other cases, separate approved budgets may be re!uired for certain activities, groups of activities or entities included in the financial statements of a government or other public sector entity. This may occur where, for e"ample, a government*s financial statements encompass government agencies or programs that have operational autonomy and prepare their own budgets. This Guidance applies to all entities which present financial statements when approved budgets for the entity, or components thereof, are agreed by parliament.

Com"arison of Budget and Actual Amounts

9.&& (resentation in the financial statements of the original budget, final budget and actual amounts on a comparable basis will complete the accountability cycle by enabling users of the financial statements to identify whether resources were obtained and used in accordance with the approved budget. -ifferences +actual and percentage, between the actual amounts and the budget amounts, whether original or final budget +often referred to as the =variance>,, may also be presented in the financial statements for completeness. 9.&) n e"planation of the material differences between actual amounts and the budget amounts will assist users in understanding the reasons for material departures from the approved budget for which the entity is held publicly accountable. 9.&3 Cegislation, regulation or other authority will often provide guidance on whether e"planation of material differences between actual and the original budget amounts, or actual and the final budget amounts, is re!uired in accordance with paragraph 9.9+c,. 'n the absence of any such guidance, material differences may be determined by reference to, for e"ample, differences between actual and original budget to focus on performance against original budget, or differences between actual and final budget to focus on compliance with the final budget. 9.&: ?anagement discussion and analysis, operations review or other public reports which provide commentary on the performance and achievements of the entity during the reporting period, including e"planations of any material differences from budget amounts, are often issued in conjunction with the financial statements. 'n accordance with paragraph &.8.9+c, of this Guidance, e"planation of material differences between actual and budget amounts will be included in notes to the financial statements unless included in other public reports or documents issued in conjunction with the financial statements, and the notes to the financial statements identify the reports or documents in which the e"planation can be found. 9.&; -etails may also be provided of the amount of e"penditure which has been warranted or released compared to the actual and budgeted amounts. 9.&4 The financial statements may also highlight key differences between the budgeted amounts intended to benefit directly the country*s most impoverished populations and the actual outcome +for e"ample, primary health care, primary education and provision of safe water,. Suitable e"planations should be provided in the notes to the accounts for any material variances. 9.&5 .here approved budgets are only provided for some of the entities or activities included in the financial statements, the re!uirements of paragraph 9.9 will apply to only the entities or activities reflected in the approved budget.

+evel of Aggregation
9.&9 $udget documents may provide great detail about particular activities, programs or entities. These details are often aggregated into broad classes under common =budget heads>, =budget classifications> or =budget headings> for presentation to, and approval by (arliament. The disclosure of budget and actual information consistent with those broad classes and budget heads or headings will ensure that comparisons are made at the level of

1#

(arliamentary oversight identified in the budget document+s,. 9.&8 'n some cases, the detailed financial information included in approved budgets may need to be aggregated for presentation in financial statements in accordance with the re!uirements of this Guidance. Such aggregation may be necessary to avoid information overload and to reflect relevant levels of (arliamentary oversight. -etermining the level of aggregation will involve professional judgment. That judgment will be applied in the conte"t of the objective of this Guidance and the !ualitative characteristics of financial reporting as identified in paragraph 4.3 of this Guidance. 9.)/ .here any such aggregation takes place, a comparison of budget to actual amounts at the detailed level should be provided in notes to the financial statements or in separate reports which are made available on the 'nternet from the website of the ?inistry of %inance. 9.)& The financial statements for the #onsolidated Aevenue %und may provide e"planations for material differences between the actual and budget amounts at the level of each entity and perhaps major budgetary classifications with each entity. %urther e"planations of material variances at the sub-classification may then be provided in the financial statements for the individual entities. 9.)) dditional budget information, including information about service achievements, may be presented in documents other than financial statements. This Guidance encourages the inclusion in the financial statements of a cross reference to such documents.

Classification Basis
?.'2 ll actual amounts should be classified on the same basis as the budget. 9.): The comparison of actual amounts with the budget should be presented using the same classification basis, for the same entities and for the same period as are presented in the approved budget. This will ensure that the disclosure of information about compliance with the budget in the financial statements is on the same basis as the budget itself.

1ote &isclosures of Budgetary Basis, Period and Sco"e

?.'= n entity should e#plain in notes to the financial statements the budgetary classification adopted in the approved budget. 9.)4 %ormats and classification schemes adopted for presentation of the approved budget may also differ from the formats adopted for the financial statements. n approved budget may classify items on the same basis as is adopted in the financial statements, for e"ample, e"penditures by economic nature +compensation of employees, supplies and consumables, grants and transfers, etc, or function +health, education, etc,. lternatively, the budget may classify items by specific programs +for e"ample, poverty reduction or control of contagious diseases, or program components linked to performance outcome objectives +for e"ample, students graduating from tertiary education or surgical operations performed by hospital emergency services,, which differ from classifications adopted in the financial statements. %urther, a recurrent budget for ongoing operations +for e"ample, education or health, may be approved separately from a capital budget for capital outlays +for e"ample, infrastructure or buildings,. 9.)5 -isclosure of the budgetary basis and classification basis adopted for the preparation and presentation of approved budgets will assist users to better understand the relationship between the budget and accounting information disclosed in the financial statements.

6ey budget documents

9.)9 The Fpen $udget (artnership has identified the following eight key budget documents which should be presented to (arliament and made available to the public at appropriate stages of the budget cycle0 (re-budget statement <"ecutive*s budget proposal <nacted budget #itizens budget 'n-year budget reports ?id-year budget review 7ear-end budget report udit report.

9.)8 %urther details on these documents is provided in ppendi" ) to this document.

1$

7 Reci"ients of '0ternal Assistance

&efinitions
9.1 "he following terms are used in this Guidance with the meaning specified( ssigned &#ternal ssistance means any e#ternal assistance, including e#ternal assistance grants, technical assistance, guarantees or other assistance, received by an entity that is assigned by the recipient to another entity. %ilateral &#ternal ssistance gencies are agencies established under national law, regulation or other authority of a nation for the purpose of, or including the purpose of, providing some or all of that nations e#ternal assistance. &#ternal ssistance means all official cash received which the recipient can use or otherwise benefit from in pursuit of its ob,ectives. *ultilateral &#ternal ssistance gencies are all agencies established under international agreement or treaty for the purpose of, or including the purpose of, providing e#ternal assistance. 8on$Governmental 4rgani+ations /8G4s0 are all foreign or national agencies established independent of control by any government for the purpose of providing assistance to government/s0, government agencies, other organi+ations or to individuals. 4fficial .esources means all loans, grants, technical assistance, guarantees or other assistance provided or committed under a binding agreement by multilateral or bilateral e#ternal assistance agencies or by a government, or agencies of a government, other than to a recipient of the same nation as the government or government agency providing, or committing to provide, the assistance. .e$<ent &#ternal ssistance <oans means e#ternal assistance loans received by an entity that are lent by the recipient to another entity. 8.) -ifferent organizations may use different terminology for e"ternal assistance or classes of e"ternal assistance. %or e"ample, some organizations may use the term e"ternal aid or aid, rather than e"ternal assistance. 'n these cases, the different terminology is unlikely to cause confusion. 1owever, in other cases, the terminology may be substantially different. 'n these cases, preparers, auditors and users of general purpose financial statements will need to consider the substance of the definitions rather than just the terminology in determining whether the re!uirements of this Guidance apply.

'0ternal Assistance
8.3 <"ternal assistance is defined in paragraph 8.& as all official cash received which the recipient can use or otherwise benefit from in pursuit of its objectives. Ffficial resources as defined in paragraph 8.& does not encompass assistance provided by non-governmental organizations +6GFs,, even if such assistance is provided under a binding agreement. ssistance received from 6GFs, whether in the form of cash donations or third party settlements, will be presented in the financial statements and disclosed in e"planatory notes in accordance with the re!uirements of this Guidance. 8.: 6GFs as defined in paragraph 8.& are foreign or national agencies established independent of control by any government. 'n some rare cases, it may not be clear whether the donor organization is a bilateral or multilateral e"ternal assistance agency or a 6GF, and therefore independent of control by any government. .here such a donor organization provides, or commits to provide, assistance under the terms of a binding agreement, the distinction between official resources as defined in this Guidance and resources provided by a 6GF may become blurred. 'n these cases, professional judgment will need to be e"ercised to determine whether the assistance received satisfies the definition of e"ternal assistance and, therefore, is subject to the disclosure re!uirements specified in this section.

Official Resources
8.; Ffficial resources are defined in paragraph 8.& to be cash committed under a binding agreement by

2&

multilateral or bilateral e"ternal assistance agencies or governments or government agencies, other than to a recipient of the same nation as the provider of the assistance. Governments as referred to in the definition of official resources may include national, state, provincial or local governments in any nation. Therefore, assistance provided by, for e"ample, a national government or state government agency of one nation to a state or local government of another nation is e"ternal assistance as defined in this Guidance. 1owever, assistance provided by a national or state government to another level of government within the same nation does not satisfy the definition of official resources, and therefore is not e"ternal assistance.

'0ternal Assistance Agreements

8.4 Governments seeking particular forms of e"ternal assistance may participate in formal meetings or rounds of meetings with donor organizations. These may include meetings to discuss the government*s macroeconomic plans and its development assistance needs, or bilateral discussions at governmental level regarding trade finance, military assistance, balance of payments and other forms of assistance. They may also include separate meetings to consider the country*s emergency assistance needs as those needs arise. 'nitial discussions may result in statements of intent or pledges which are not binding on the government or the e"ternal assistance agency. 1owever, subse!uently binding agreements may be set in place to make available assistance loans or grants provided restrictions on access to the funds, if any, are met and agreed conditions or covenants are adhered to by the recipient entity. 8.5 <"ternal assistance agreements may provide for the entity to0 +a, -raw down in cash the full proceeds of the loan or grant or a tranche of the loan or grantG +b, Seek reimbursement+s, for !ualifying payments made by the entity to a third party settling in cash an obligation+s, of the entity, as defined by the loan or grant agreementG or +c, Ae!uest the e"ternal assistance agency to make payments directly to a third party settling in cash an obligation+s, of the recipient entity as defined by the loan or grant agreement, including an obligation of the recipient entity for goods or services provided or to be provided by an 6GF. These payments are made only on the re!uest or application of the receiving government. The value of these in the reporting currency of the Government should be disclosed in the notes to the financial statements +see 8.&9,.

'0ternal Assistance Received

9.? "he entity should disclose separately on the face of the 97tatement of .eceipts and 6ayments:, total e#ternal assistance received in cash during the period compared to the budget for such funds. 9.1@ Ahere e#ternal assistance is received from more than one provider, the significant individual providers of assistance should be disclosed separately, either on the face of the 97tatement of .eceipts and 6ayments: or in the notes to the financial statements. "he currency in which the assistance was provided should be reported and the e#change rate used if appropriate. 9.11 Ahere e#ternal assistance is received in the form of loans and grants, the total amount received during the period as loans and the total amount received as grants should be shown separately, either on the face of the 97tatement of .eceipts and 6ayments: or in the notes to the financial statements. 8.&) <"ternal assistance may be provided directly to the reporting entity in the form of cash. -isclosure of the amount of e"ternal assistance received in the form of cash from each significant provider will allow the reporting entity to account for all the e"ternal assistance it has received in this form and for providers of e"ternal assistance to confirm the receipt of this assistance by the reporting entity. 8.&3 -etails should be provided of the e"ternal assistance provided in cash to each public sector entity and this assistance should be analysed to show general budget support, sector budget support and other. 8.&: -etails should be provided of the significant classes of providers of assistance such as, for e"ample, multilateral donors, bilateral donors, international assistance organizations, national assistance organizations or other major classes as appropriate for the reporting entity. 8.&; <"ternal assistance is often denominated in a currency other than the reporting currency of the entity. #ash receipts arising from transactions in a foreign currency, will be recorded or reported in the entity*s reporting currency by applying to the foreign currency amount the e"change rate between the reporting currency and the

21

foreign currency at the date of the receipts or payments in accordance with paragraph 5.:9 of this Guidance ) Such e"change rates should be reported to allow the providers of e"ternal assistance to confirm the receipt of the amount of the assistance they provided. 8.&4 6ational governments usually retain the e"clusive right to enter into e"ternal assistance agreements with multilateral or bilateral e"ternal assistance agencies. 'n many of these cases, the project or activity is implemented by another entity. The national government may re-lend or assign the funds received to the other entity. The terms and conditions of the re-lent or assigned funds may be the same as received from the e"ternal assistance agency or may be different than initially received. 'n some cases, a small fee or interest spread is charged to cover the national government*s administrative costs. n entity which enters into an e"ternal assistance agreement and passes the benefits as well as the terms and conditions of the agreement through to another entity by way of a subsidiary agreement will recognize or report the e"ternal assistance as it is received. 't will also record payments to the second entity in accordance with its normal classification of payments adopted in the financial statements. 8.&5 .here the initial recipient of a loan or grant passes the proceeds and the terms and conditions of the loan or grant through to another entity, the initial entity may simply be administering the loan or grant on behalf of the end user. 6etting of transactions where the terms and conditions are substantially the same may be appropriate in the financial statements of the administrator, in accordance with the provisions of paragraph :.) of this Guidance. 8.&9 <"ternal assistance may include payments made by the development partner directly to a third party settling in cash an obligation+s, of the recipient entity, including an obligation of the recipient entity for goods or services provided or to be provided by an 6GF. These payments are made only on the re!uest or application of the receiving government. The value of these payments in the reporting currency of the Government should be disclosed in the notes to the financial statements. 8.&8 -etails of e"ternal assistance received in kind may be provided if the details and values of such e"ternal assistance are formally reported in writing to the relevant ministry, department or agency. summary may be provided of all aid agreements showing the provider and the amounts in the currency of origin and local currency. The 6otes to the financial statements should indicate the amount of such e"ternal assistance received in kind +project aid, which is disclosed in the financial statements.

22

EN!"# $% "llustration of the &e'uirements of the (uidance

&his Appendi( is illustrative only and does not form part of the Guidance) %t illustrates an e(tract of a Statement of Receipts and -ayments and relevant note disclosures for the Consolidated Revenue Fund of a government that has received e(ternal assistance loans and grants during the current and preceding periods) %ts purpose is to assist in clarifying the meaning of the Guidance by illustrating its application in the preparation and presentation of general purpose financial statements under the cash basis of accounting for/

23

G%&'()*')+ %, E-../0. F0).)10.2 -+.+'*')+F%( +3' 4'.( ')5'5 31 D'1'*6'( 2#1 Ministerial Statement
%iscal year )/&K has been a challenging but relatively successful year. <conomic and financial performance were affected by e"treme pressures from high fuel prices on the international market, escalation of food and other domestic commodity prices and disruption of e"port and supply routes to the sea. -espite the difficulties arising from these pressures, the Government maintained economic stability through macroeconomic measures that did not interfere with the market and as a result economic growth was higher than anticipated. The Government*s fiscal strategy was aimed at strengthening its financial position to ensure efficient, effective, transparent and accountable use of public resources as a basis for poverty eradication and improved service delivery. The strategy focuses on attaining long-term fiscal sustainability by improving the net financial worth of government through implementation policies that are aimed at eradicating poverty by promoting economic productivity and competitiveness. Government will continue to address the constraints that stand in the way of developing long-term productive capacity and competiveness by investing in priority areas of infrastructure, industrial development, 'nformation Technology and #ommunication +'#T, and rural development. The objective is to create long-term fiscal sustainability to transform <saagia into a country of opportunity and prosperity for all.

LLLLLLLLLLLLL aul Mohamed "ssa )M * ?inister of %inance

24

G%&'()*')+ %, E-../0. F0).)10.2 -+.+'*')+F%( +3' 4'.( ')5'5 31 D'1'*6'( 2#1

C%**')+.(4 %) +3' F0).)10.2 S+.+'*')+- 64 +3' A11%7)+.)+ G')'(.2 I)+(%571+0%)
The financial statements of the Government of <saagia provide a record of the government*s receipts and payments for the financial end 3& -ecember )//&K and the financial position of the #onsolidated Aevenue %und as at 3& -ecember )//&K. The financial statements provide a comparative analysis of the actual outturns of the financial year )/&K and the previous financial year to 3& -ecember )//&K-&. $elow is an overview of government*s financial results for the financial year ended 3& -ecember )//&K.

S7**.(4 ==================================================== T%+.2 R'1'08+==================================================== T%+.2 P.4*')+==================================================== T%+.2 A--'+==================================================== T%+.2 L0.6020+0'==================================================== G%&'()*')+ D'6+ ==================================================== F0&' T(')5 0) F0).)10.2 R'-72+====================================================

%or effective understanding and interpretation, the financial statements should be read in conjunction with the underlying notes and schedules. LLLLLLLLLLLLLLL. Ahmed Simon Nyrere ccountant General ?inistry of %inance, (lanning and <conomic -evelopment

25

G%&'()*')+ %, E-../0. S+.+'*')+ %, R'1'08+- .)5 P.4*')+- ,%( +3' C%)-%205.+'5 R'&')7' F7)5 F%( +3' 4'.( ')5'5 31 D'1'*6'( 2#1
A22 .*%7)+- .(' 8(%&05'5 0) *0220%)- %, 17((')14 7)0+- 7)2'-- %+3'(90-' ('8%(+'5. 2#1 O(0/0).2 B75/'+ D'-1(08+0%) RECEIPTS Taxation VAT I+<0@- ,/= C38,0@ 43,2 T/=-8 0+ 10</1 <0+83@>,i0+ &on tax+fiscal revenue Grants and Aid I+,-.+/,i0+/1 /:-+<i-8 ,orrowings P.0<--48 B.0@ 40@-8,i< ;0..0Ci+:8 P.0<--48 B.0@ -=,-.+/1 ;0..0Ci+:8 *nvestments Di*i4-+48 B.0@ G0*-.+@-+, i+*-8,@-+,8 -ther receipts O,9-. .-<-i>,8 'xchange gain T%+.2 ('1'08+PAYMENTS -perations (/:-8 S/1/.i-8 D E@>102-- B-+-Bi,8 S3>>1i-8 /+4 C0+83@/;1-8 Transfers T./+8B-.8 ,0 C-+,./1 :0*-.+@-+, T./+8B-.8 ,0 L0</1 :0*-.+@-+, 4 1&& $46 15& &&& 15& &&& 4$ &54 $# 56" N%+'A1+7.2 R'1'08+;P.4*')+-< F0).2 B75/'+ D0,,'(')1' 6'+9'') F0).2 B75/'+ = A1+7.2 A*%7)+2#1 :1 A1+7.2 R'1'08+;P.4*')+-<

2 2 2 2 3

66 6$# 63 6$$ 3" 363 14 $"# 6 5"4

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26

2#1 O(0/0).2 B75/'+ D'-1(08+0%) L%.) R'8.4*')+.)5 I)+'('-+ R->/2@-+,8 0B E=,-.+/1 B0..0Ci+: D0@-8,i< I+,-.-8, F0.-i:+ I+,-.-8, T%+.2 P.4*')+8 N-, I+<.-/8-E5D-<.-/8-6 i+ C/89 /+4 C/89 E?3i*/1-+,8 N%+'A1+7.2 R'1'08+;P.4*')+-< F0).2 B75/'+ D0,,'(')1' 6'+9'') F0).2 B75/'+ = A1+7.2 A*%7)+-

2#1 :1 A1+7.2 R'1'08+;P.4*')+-<

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421>233 316>5#2

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G%&'()*')+ %, E-../0. S+.+'*')+ %, F0).)10.2 P%-0+0%) ,%( +3' C%)-%205.+'5 R'&')7' F7)5 Y'.( ')5'5 31 D'1'*6'( 2#1
A22 .*%7)+- .(' 8(%&05'5 0) *0220%)- %, 17((')14 7)0+- 7)2'-- %+3'(90-' ('8%(+'5. 31-+ D'1'*6'( 2#1 D'-1(08+0%) A--'+C/89 /+4 </89 -?3i*/1-+,8 B/+A ;/1/+<-8 P.->/2@-+,8 D A4*/+<-8 R-<-i*/;1-8 I+*-8,@-+,8 L0/+8 T0,/1 A88-,8 L0.6020+0'B0..0Ci+:8 5i+,-.-8, ;-/.i+: 1i/;i1i,i-86 B/+A O*-.4./B,8 S90.,!,-.@ 10/+8 B0..0Ci+:8 F 10+: ,-.@ P/2/;1-8 P-+8i0+ 1i/;i1i,i-8 T%+.2 20.6020+0'1& &&& N-, 1i/;i1i,i-8 R'8('-')+'5 64 A<<3@31/,-4 4-Bi<i, i+ ,9C0+801i4/,-4 F3+4 N-, C0.,9 3 426 5 456 N%+'A*%7)+31-+ D'1'*6'( 2#1 : 1

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&E O&T O+ T,E A-!"TO&.(ENE&A/

TO A&/"AMENT ON T,E +"NANC"A/ STATEMENTS O+ T,E CONSO/"!ATE! &E0EN-E +-N!
for the year ended 1$ !ECEMBE& 23$#
&E O&T ON T,E +"NANC"A/ STATEMENTS "ntroduction &. Section KK of the (ublic %inance ?anagement ct, )//K + ct 6o. & of )//K, re!uires the ccountant General to prepare annual financial statements for the #onsolidated Aevenue %und in accordance with generally recognised accounting practice. ). ' have audited the accompanying financial statements of the #onsolidated Aevenue %und. These statements comprise the Statement of Aeceipts and (ayments for the year ended 3& -ecember )/&K, the Statement of %inancial (osition as at 3& -ecember )/&K and a summary of significant accounting policies and other e"planatory notes, as set out on pages KK to 77. The accounting officer4s responsibility for the financial statements 3. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting specified in the <S G Guidance and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The uditor-General*s responsibility :. The uditor-General*s responsibility is to e"press an opinion on these financial statements based on my audit. ;. ' conducted my audit in accordance with the 'nternational Standards on uditing. Those standards re!uire that ' comply with ethical re!uirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. n audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor*s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. 'n making those risk assessments, the auditor considers internal control relevant to the entity*s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of e"pressing an opinion on the effectiveness of the entity*s internal control. n audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 5. ' believe that the audit evidence ' have obtained is sufficient and appropriate to provide a basis for my audit opinion. Basis for a 'ualified opinion "mmo5able tangible assets 9. 'ncluded in note :5 to the financial statements is an amount of <saagia ;.3 billion relating to the ?inistry of (ublic .orks, the completeness, rights and obligations, and valuation of which could not be verified. Opinion

2$

8. 'n my opinion, e"cept for the possible effects of the matters described in the basis for a !ualified opinion paragraphs, the financial statements present fairly, in all material respects, the consolidated financial position as at 3& -ecember )/&K and the Statement of Aeceipts and (ayments for the year then ended, in accordance with the modified cash basis of accounting as outlined in the <S G Guidance. Signed LLLLLLLLLL.. Fbama 'dris (aul uditor General of <saagia )8 September )/&7

3&

A11%7)+0)/ P%2010'-

B.-0- %, 8('8.(.+0%) T9- Bi+/+<i/1 8,/,-@-+,8 9/*- ;--+ >.->/.-4 i+ /<<0.4/+<- Ci,9 Guidance on Government Annual Financial Reporting on the Modified Cash asis for !"AAG Member Countries. T9- Fi+/+<i/1 S,/,-@-+,8 9/*- ;--+ >.->/.-4 0+ / @04iBi-4 </89 ;/8i8 0B /<<03+,i+: -=<->, C9-.- 8,/,-4 0,9-.Ci8-. T9- @04iBi-4 </89 ;/8i8 <0+8,i,3,-8 ,9- </89 ;/8i8 0B /<<03+,i+: 83>>1-@-+,-4 Ci,9 /44i,i0+/1 4i8<1083.- i,-@8. A<<0.4i+: ,0 ,9- M04iBi-4 C/89 B/8i8 0B /<<03+,i+: .-*-+3- /+4 -=>-+4i,3.- /.- .-<0:+i8-4 C9-+ ,9-2 /.- .-<-i*-4 0. >/i4. T9- C/89 B/8i8 0B /<<03+,i+: 9/8 ;--+ @04iBi-4 <0+<-.+i+: ,9- B0110Ci+:7 5/6 Si+Ai+: F3+48 i+<134- /<<.3-4 i+,-.-8, i+<0@- B0. ,9- 2-/.. 5;6 T9- ;/1/+<-8 0B ,9- L0/+8 :./+,-4 B.0@ ,9- R->3;1i< /+4 B0..0Ci+:8 i+ B0.-i:+ <3..-+<i-8 i+<134- 3+.-/1i8-4 B0.-i:+ -=<9/+:- :/i+8 /+4 1088-8 /.i8i+: B.0@ ,9- ,./+81/,i0+ Ci,9 ,9- 2-/. -+4 -=<9/+:- ./,-8. 5<6 T9- ;/1/+<-8 0B Si+Ai+: F3+48 L0/+8 :./+,-4 B0..0Ci+:8 /+4 I+*-8,@-+,8 /.- </>i,/1i8-4 /, ,9- -+4 0B ,9- Bi+/+<i/1 2-/. /+4 ,9-2 /.- i+<134-4 0+ ,9- S,/,-@-+, 0B A88-,8 /+4 Li/;i1i,i-8. T9- +-, ,0,/1 /@03+, /, ,9- -+4 0B ,9- Bi+/+<i/1 2-/. 0B ,9- i,-@8 8,/,-4 i+ >0i+, 5<6 /;0*- i8 .-<0:+i8-4 i+ ,9- R-8-.*- B.0@ I+*-8,i+: /+4 Fi+/+<i+: A<,i*i,i-8. T9- Fi+/+<i/1 S,/,-@-+,8 9/*- ;--+ >.->/.-4 3+4-. ,9- 9i8,0.i</1 <08, <0+*-+,i0+. T9- /<<03+,i+: >01i<i-8 9/*- ;--+ />>1i-4 <0+8i8,-+,12 ,9.03:903, ,9- >-.i04. L'/.2 B.-0T9- Bi+/+<i/1 8,/,-@-+,8 8-, 03, 0+ >/:-8 G /.- B0. ,9- Mi+i8,.2 0B Fi+/+<- 0B E8//:i/. T9B0.@ 0B ,9- 8,/,-@-+,8 9/8 ;--+ />>.0*-4 ;2 ,9- Mi+i8,-. B0. Fi+/+<- 3+4-. S-<,i0+ G 0B ,9P3;1i< Fi+/+<i/1 M/+/:-@-+, A<, 2&&). T9- Bi+/+<i/1 8,/,-@-+,8 9/*- ;--+ >.->/.-4 i+ /<<0.4/+<- Ci,9 ,9- B0110Ci+: >01i<i-8 C9i<9 9/*- ;--+ />>1i-4 <0+8i8,-+,12 i+ /11 @/,-.i/1 .-8>-<,8 3+1-88 0,9-.Ci8- i+4i</,-4. H0C-*-. C9-.- />>.0>.i/,- /+4 @-/+i+:B31 /44i,i0+/1 i+B0.@/,i0+ 9/8 ;--+ 4i8<108-4 ,0 -+9/+<- ,938-B31+-88 0B ,9- Bi+/+<i/1 8,/,-@-+,8 /+4 ,0 <0@>12 Ci,9 ,9- 8,/,3,0.2 .-?3i.-@-+,8 0B ,9P3;1i< Fi+/+<- M/+/:-@-+, A<, 2&&) ,9- Fi+/+<i/1 R-:31/,i0+8 i883-4 i+ ,-.@8 0B ,9- A<, /+4 ,9- R-*-+3- A<, 2&&). T9- G0*-.+@-+,H8 /<<03+,i+: >01i<i-8 @38, <0@>12 Ci,9 ,9- /;0*- /+4 0,9-. .-1-*/+, 1-:i81/,i0+. I+ ,9- -*-+, 0B /+2 <0+B1i<, i+ i+,-.>.-,/,i0+ ,9- .-?3i.-@-+,8 0B 1-:i81/,i0+ @38, >.-*/i1. R'8%(+0)/ E)+0+4 T9- Bi+/+<i/1 8,/,-@-+,8 /.- B0. / >3;1i< 8-<,0. -+,i,2 5G0*-.+@-+, E+,i,2 AB6. T9- Bi+/+<i/1 8,/,-@-+,8 -+<0@>/88 ,9- .->0.,i+: -+,i,2 /8 8>-<iBi-4 i+ ,9- .-1-*/+, 1-:i81/,i0+ 5P3;1i< Fi+/+<i/1 M/+/:-@-+, A<, 2&&)6. 31

G0*-.+@-+, E+,i,2 AB i8 <0+,.011-4 ;2 ,9- +/,i0+/1 :0*-.+@-+, 0B C03+,.2 A. G0*-.+@-+, E+,i,2 ABH8 >.i+<i>/1 /<,i*i,2 i8 ,0 >.0*i4- Ii4-+,iB2 ,2>- 0BJ 8-.*i<-8 ,0 <0+8,i,3-+,8. T9- E+,i,2 <0+,.018 i,8 0C+ ;/+A /<<03+,8. A>>.0>.i/,i0+8 /+4 0,9-. </89 .-<-i>,8 /.- 4->08i,-4 i+,0 i,8 ;/+A /<<03+,8. S0/)0,01.)+ C%)+(%22'5 E)+0+0'E)+0+4 E+,i,2 A E+,i,2 B $7(0-501+0%) ) )

T9- Bi+/+<i/1 8,/,-@-+,8 B0. ,9-8- <0+,.011-4 -+,i,i-8 /.- >.0*i4-4 Ci,9 ,908- 0B G0*-.+@-+, E+,i,2 AB. T9-8- 8,/,-@-+,8 9/*- +0, ;--+ <0+801i4/,-4 Ci,9 ,908- 0B G0*-.+@-+, E+,i,2 AB. R'8%(+0)/ P'(0%5 T9- Fi+/+<i/1 S,/,-@-+,8 <0*-. ,9- Bi+/+<i/1 2-/. 0B ,9- G0*-.+@-+, 0B (-8,/B.i</1/+4 C9i<9 ./+ B.0@ 18, J/+3/.2 ,0 ,9- 31 D-<-@;-. 2&1). R'8%(+0)/ C7((')14 T9- Fi+/+<i/1 S,/,-@-+,8 9/*- ;--+ >.->/.-4 i+ E8//:i/. F%('0/) C7((')14 F0.-i:+ <3..-+<2 ,./+8/<,i0+8 /.- ,./+81/,-4 ,0 E8//:i/ /+4 /.- /<<03+,-4 B0. ;2 38i+: ,9-=<9/+:- ./,- >.-*/i1i+: /, ,9- 4/,- 0B ,9- ,./+8/<,i0+ 38i+: ,9- -=<9/+:- ./,- >.0*i4-4 ;2 B/+A 0B E8//:i/ /8 />>.0*-4 ;2 ,9- A<<03+,/+, G-+-./1. R-/1i8-4 B0.-i:+ -=<9/+:- :/i+8 /+4 1088-8 .-831,i+: B.0@ ,9- 8-,,1-@-+, 0B 83<9 ,./+8/<,i0+8 /.- .-<0:+i8-4 i+ S,/,-@-+, 0B R-<-i>,8 /+4 P/2@-+,8. U+.-/1i8-4 B0.-i:+ -=<9/+:- :/i+8 /+4 1088-8 .-831,i+: B.0@ ,9,./+81/,i0+ 38i+: ,9- 2-/.!-+4 -=<9/+:- ./,-8 0B L0/+8 :./+,-4 /+4 B0..0Ci+:8 4-+0@i+/,-4 i+ B0.-i:+ <3..-+<i-8 /.- .-<0:+i8-4 i+ ,9- R-8-.*- B.0@ I+*-8,i+: /+4 Fi+/+<i+: A<,i*i,i-8. C%*8.(.+0&'(9-.- +-<-88/.2 <0@>/./,i*- Bi:3.-8 9/*- ;--+ .-8,/,-4 ,0 <0+B0.@ ,0 ,9- <9/+:-8 i+ ,9>.-8-+,/,i0+ i+ ,9- <3..-+, 2-/.. T9- <0@>/./,i*- Bi:3.-8 890C+ i+ ,9-8- Bi+/+<i/1 8,/,-@-+,8 /.- 1i@i,-4 ,0 ,9- Bi:3.-8 890C+ i+ ,9- >.-*i038 2-/.H8 /34i,-4 Bi+/+<i/1 8,/,-@-+,8 /+4 83<9 0,9-. <0@>/./,i*- Bi:3.-8 ,9/, ,9- 4->/.,@-+, @/2 .-/80+/;12 9/*- /*/i1/;1- B0. .->0.,i+:. C.-3 C/89 <0@>.i8-8 </89 0+ 9/+4 4-@/+4 4->08i,8 /+4 </89 -?3i*/1-+,8. D-@/+4 4->08i,8 /+4 </89 -?3i*/1-+,8 <0@>.i8- ;/1/+<-8 Ci,9 ;/+A8 /+4 i+*-8,@-+,8 i+ 890.,!,-.@ @0+-2 @/.A-, i+8,.3@-+,8. C/89 /+4 </89 -?3i*/1-+,8 /.- </..i-4 i+ ,9- ;/1/+<- 89--, /, <08,. F0. ,9- >3.>08-8 0B ,9- </89 B10C 8,/,-@-+, </89 /+4 </89 -?3i*/1-+,8 <0@>.i8- </89 0+ 9/+4 4->08i,8 9-14 /, </11 Ci,9 ;/+A8 0,9-. 890.,!,-.@ 9i:912 1i?3i4 i+*-8,@-+,8 /+4 ;/+A 0*-.4./B,8. I+ ,9- ;/1/+<- 89--, ;/+A 0*-.4./B,8 /.- i+<134-4 i+ ;0..0Ci+:8. A@03+,8 />>.0>.i/,-4 ,0 ,9- Mi+i8,.2 /.- 4->08i,-4 i+ ,9- Mi+i8,.2H8 ;/+A /<<03+, /+4 /.<0+,.011-4 ;2 ,9- -+,i,2. A11 ;0..0Ci+:8 /.- 3+4-.,/A-+ ;2 / <-+,./1 Bi+/+<- -+,i,2. R-<-i>,8 B.0@ ?3/8i!<0@@-.<i/1 ,./+8/<,i0+8 /.- 4->08i,-4 i+ ,./4i+: B3+4 /<<03+,8 <0+,.011-4 32

;2 ,9- Mi+i8,.2. T9-2 /.- ,./+8B-..-4 ,0 ,9- <0+801i4/,-4 .-*-+3- /<<03+, /, ,9- 2-/.!-+4. T(.)-,'(A@03+,8 /.- ,./+8B-..-4 ,0 -1i:i;1- .-<i>i-+,8 i+ /<<0.4/+<- Ci,9 0>-./,i+: @/+4/,- /+4 /3,90.i,2 0B ,9- -+,i,2. R'&')7' V0,-4 B3+48 /.- ,9- /@03+,8 />>.0>.i/,-4 ,0 / Mi+i8,.2 i+ /<<0.4/+<- Ci,9 ,9- Bi+/1 ;34:-,. U+-=>-+4-4 *0,-4 B3+48 /.- 83..-+4-.-4 ,0 ,9- C0+801i4/,-4 R-*-+3- F3+4 /, ,9- 2-/.8 -+4. T/= .-*-+3- .-<-i*-4 ;2 ,9- G0*-.+@-+, i8 .-<0:+i8-4 C9-+ .-,3.+8 B0. .-*-+3- <011-<,-4 /..-<-i*-4 B.0@ ,9- R-*-+3- A3,90.i,2. I+,-.-8, /+4 4i*i4-+48 .-<-i*-4 /.- .-<0:+i8-4 3>0+ .-<-i>, 0B ,9- B3+48 /+4 +0 /<<.3/1 i8 @/4- B0. i+,-.-8, 0. 4i*i4-+48 .-<-i*/;1- B.0@ ,9- 1/8, .-<-i>, 4/,- ,0 ,9- -+4 0B ,9- .->0.,i+: >-.i04. T9-2 /.- .-<0:+i8-4 /8 .-*-+3- i+ ,9- Bi+/+<i/1 8,/,-@-+,8 0B ,9- Mi+i8,.2. R-*-+3- C9i<9 i8 -/.+-4 ,9.03:9 ,9- >.0*i8i0+ 0B :0048 0. 8-.*i<-8 ,0 ,9i.4 >/.,i-8 i8 .-<0:+i8-4 C9-+ ,9- /880<i/,-4 </89 i8 .-<-i*-4 5,9- 4/,- 0B ,9- .-<-i>, >.0*i4-4 ,0 ,9- >/2--6. D%)%( .05 D0+0. /i4 i8 .-<0:+i8-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 i+ /<<0.4/+<- Ci,9 ,9- </89 ;/8i8 0B /<<03+,i+:. T938 i, i8 .-<0:+i8-4 i+ ,9- 2-/. i+ C9i<9 i, i8 /<,3/112 .-<-i*-4 i+ ,9- G0*-.+@-+,H8 ;/+A /<<03+,. C7((')+ '?8')50+7(' C3..-+, -=>-+4i,3.- i8 .-<0:+i8-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 C9-+ ,9>/2@-+, i8 @/4- 5C9-+ ,9- /880<i/,-4 <9-?3-8 0. >/2@-+, 0.4-.8 /.- 4312 /3,90.i8-46. U).7+3%(0-'5> 0(('/72.( .)5 ,(70+2'-- .)5 9.-+',72 '?8')50+7(' U+/3,90.i8-4 -=>-+4i,3.- @-/+87 ,9- 0*-.8>-+4i+: 0B / *0,- 0. / @/i+ 4i*i8i0+ Ci,9i+ / *0,- 0. -=>-+4i,3.- ,9/, C/8 +0, @/4- i+ /<<0.4/+<- Ci,9 ,9- >3.>08- 0B / *0,- 0. i+ ,9</8- 0B / @/i+ 4i*i8i0+ +0, i+ /<<0.4/+<- Ci,9 ,9- >3.>08- 0B ,9- @/i+ 4i*i8i0+. U+/3,90.i8-4 -=>-+4i,3.- i8 ,.-/,-4 /8 / <3..-+, /88-, i+ ,9- ;/1/+<- 89--, 3+,i1 83<9 -=>-+4i,3.- i8 .-<0*-.-4 B.0@ / ,9i.4 >/.,2 0. B3+4-4 B.0@ B3,3.- *0,-4 B3+48. I..-:31/. -=>-+4i,3.- @-/+8 -=>-+4i,3.- 0,9-. ,9/+ 3+/3,90.i8-4 -=>-+4i,3.- i+<3..-4 i+ <0+,./*-+,i0+ 0B 0. +0, i+ /<<0.4/+<- Ci,9 / .-?3i.-@-+, 0B /+2 />>1i</;1- 1-:i81/,i0+ i+<134i+:7 ,9- P3;1i< Fi+/+<- M/+/:-@-+, A<, 2&&) ,9- S,/,- T-+4-. B0/.4 A<, 2&&) 0. /+2 .-:31/,i0+8 @/4- i+ ,-.@8 0B ,9i8 /<, 0. /+2 >.0*i+<i/1 1-:i81/,i0+ >.0*i4i+: B0. >.0<3.-@-+, >.0<-43.-8 i+ ,9/, >.0*i+<i/1 :0*-.+@-+,. I..-:31/. -=>-+4i,3.- i8 ,.-/,-4 /8 -=>-+4i,3.- i+ ,9- i+<0@- 8,/,-@-+,. F.3i,1-88 /+4 C/8,-B31 -=>-+4i,3.- @-/+8 -=>-+4i,3.- ,9/, C/8 @/4- i+ */i+ /+4 C0314 9/*;--+ /*0i4-4 9/4 .-/80+/;1- </.- ;--+ -=-.<i8-4. F.3i,1-88 /+4 C/8,-B31 @38, ;- .-<0*-.-4 B.0@ / .-8>0+8i;1- 0BBi<i/1 5/ 4-;,0. /<<03+, 890314 ;- ./i8-46 0. ,9- *0,- iB .-8>0+8i;i1i,2 </++0, ;- 4-,-.@i+-4. I, i8 ,.-/,-4 /8 / <3..-+, /88-, i+ ,9- ;/1/+<- 89--, 3+,i1 83<9 -=>-+4i,3.i8 .-<0*-.-4 B.0@ ,9- .-8>0+8i;1- 0BBi<i/1 0. B3+4-4 B.0@ B3,3.- *0,-4 B3+48.

33

D'6+- 9(0++') %,, D-;,8 /.- C.i,,-+ 0BB C9-+ i4-+,iBi-4 /8 i..-<0*-./;1-. N0 >.0*i8i0+ i8 @/4- B0. i..-<0*-./;1/@03+,8. C.80+.2 '?8')50+7(' E=>-+4i,3.- B0. >928i</1 i,-@8 0+ 9/+4 0+ 31 D-<-@;-. 2&&) ,0 ;- <0+83@-4 i+ ,9B0110Ci+: Bi+/+<i/1 2-/.8 i8 C.i,,-+ 0BB i+ B311 i+ ,9- 2-/. i+ C9i<9 ,9- /880<i/,-4 >/2@-+,8 /.@/4- /+4 /.- /<<03+,-4 B0. /8 -=>-+4i,3.- i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8. T9- >/.,i<31/.8 0B ,9- Bi=-4 /88-,8 /<?3i.-4 /.- .-<0.4-4 /+4 i+ ,9- Bi=-4 /88-,8 .-:i8,-.. U+.-/1iK-4 :/i+8 0. 1088-8 /.i8i+: B.0@ <9/+:-8 i+ ,9- */13-8 0B >.0>-.,2 >1/+, /+4 -?3i>@-+,8 I>928i</1 /88-,8J /.- +0, .-<0:+iK-4 i+ ,9- Bi+/+<i/1 8,/,-@-+,8. Si@i1/.12 :/i+8E51088-86 0+ 4i8>08/1 0B ,9-8- /88-,8 /.- +0, .-<0:+iK-4 i+ ,9- Bi+/+<i/1 8,/,-@-+,8. H0C-*-. >.0<--48 0+ 4i8>08/1 0B ,9-8- /88-,8 /.- .-<0:+iK-4 /8 +0+!,/= .-*-+3- i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 i+ ,9- 2-/. i+ C9i<9 83<9 >.0<--48 /.- .-<-i*-4. B%((%90)/B0..0Ci+:8 /.- i+i,i/112 .-<0.4-4 i+ ,9- ;/1/+<- 89--, /, ,9- */13- 0B ,9- >.0<--48 .-<-i*-4 +-, 0B ,./+8/<,i0+ <08,8 >/i4. U+.-/1iK-4 :/i+8E51088-86 i+<134i+: -=<9/+:- ./,- :/i+8 0. 1088-8 /.+0, .-<0:+iK-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8. H0C-*-. i+,-.-8, /+4 0,9-. -=>-+8-8 0. i+<0@- 0+ ;0..0Ci+:8 i8 .-<0:+iK-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 C9-+ >/i4 0. .-<-i*-4. I)&'-+*')+N0+!<3..-+, i+*-8,@-+,8 /.- 890C+ /, <08, /+4 /4L38,@-+,8 /.- @/4- 0+12 C9-.- i+ ,9- 0>i+i0+ 0B ,9- /<<03+,i+: 0BBi<-. ,9- i+*-8,@-+, i8 i@>/i.-4. (9-.- /+ i+*-8,@-+, 9/8 ;--+ i@>/i.-4 i, i8 .-<0:+i8-4 /8 /+ -=>-+8- i+ ,9- >-.i04 i+ C9i<9 ,9- i@>/i.@-+, i8 i4-+,iBi-4. O+ 4i8>08/1 0B /+ i+*-8,@-+, ,9- 4iBB-.-+<- ;-,C--+ ,9- +-, 4i8>08/1 >.0<--48 /+4 ,9</..2i+: /@03+, i8 <9/.:-4 0. <.-4i,-4 ,0 ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8. I)&'-+*')+- 0) 1%)+(%22'5 ')+0+0'I+*-8,@-+,8 i+ <0+,.011-4 -+,i,i-8 /.- ,908- -+,i,i-8 C9-.- ,9- .->0.,i+: -+,i,2 9/8 ,9- /;i1i,2 ,0 -=-.<i8- /+2 0B ,9- B0110Ci+: >0C-.8 ,0 :0*-.+ ,9- Bi+/+<i/1 /+4 0>-./,i+: >01i<i-8 0B ,9- -+,i,2 i+ 0.4-. ,0 0;,/i+ ;-+-Bi,8 B.0@ i,8 /<,i*i,i-87 T0 />>0i+, 0. .-@0*- /11 0. ,9- @/L0.i,2 0B ,9- @-@;-.8 0B ,9/, -+,i,2H8 ;0/.4 0B 4i.-<,0.8 0. -?3i*/1-+, :0*-.+i+: ;042M T0 />>0i+, 0. .-@0*- ,9- -+,i,2H8 <9i-B -=-<3,i*- 0BBi<-.M T0 </8, /11 0. ,9- @/L0.i,2 0B ,9- *0,-8 /, @--,i+:8 0B ,9/, ;0/.4 0B 4i.-<,0.8 0. -?3i*/1-+, :0*-.+i+: ;042M 0. T0 <0+,.01 /11 0. ,9- @/L0.i,2 0B ,9- *0,i+: .i:9,8 /, / :-+-./1 @--,i+: 0B ,9/, -+,i,2. I)&'-+*')+- 0) 1%)+(%22'5 ')+0+0'- .(' -3%9) .+ 1%-+. R'1'0&.62'R-<-i*/;1-8 /.- i+<134-4 i+ ,9- ;/1/+<- 89--, C9-.- ,9-2 /.i8- B.0@ </89 >/2@-+,8 ,9/, /..-<0*-./;1- B.0@ /+0,9-. >/.,2. R-<-i*/;1-8 B0. 8-.*i<-8 4-1i*-.-4 /.- +0, .-<0:+i8-4 i+ ,9- ;/1/+<- 89--, /8 / <3..-+, /88-, 0. /8 i+<0@- i+ ,9- i+<0@- 8,/,-@-+, /8 ,9- Bi+/+<i/1 8,/,-@-+,8 /.- >.->/.-4 0+ / @04iBi-4 </89 ;/8i8 0B /<<03+,i+: ;3, /.- 4i8<108-4 8->/./,-12 /8 >/., 0B ,9- 4i8<1083.- +0,-8 ,0 -+9/+<- ,938-B31+-88 0B ,9- Bi+/+<i/1 8,/,-@-+,8. 34

P.4.62'P/2/;1-8 /.- i+<134-4 i+ ,9- ;/1/+<- 89--, C9-.- ,9-2 /.i8- B.0@ </89 .-<-i>,8 ,9/, /.- 43- ,0 ,9- C0+801i4/,-4 R-*-+3- F3+4 0. /+0,9-. >/.,2. P(%&0-0%)A >.0*i8i0+ i8 / 1i/;i1i,2 0B 3+<-.,/i+ ,i@i+: 0. /@03+,. P.0*i8i0+8 /.- 4i8<108-4 8->/./,-12 /8 >/., 0B ,9- 4i8<1083.- +0,-8 ,0 -+9/+<- ,9- 38-B31+-88 0B ,9- Bi+/+<i/1 8,/,-@-+,8. L'.-' 1%**0+*')+L-/8- <0@@i,@-+,8 B0. ,9- >-.i04 .-@/i+i+: B.0@ ,9- .->0.,i+: 4/,- 3+,i1 ,9- -+4 0B ,9- 1-/8<0+,./<, /.- 4i8<108-4 /8 >/., 0B ,9- 4i8<1083.- +0,-8 ,0 ,9- Bi+/+<i/1 8,/,-@-+,8. T9-8<0@@i,@-+,8 /.- +0, .-<0:+i8-4 i+ ,9- ;/1/+<- 89--, /8 / 1i/;i1i,2 0. /8 -=>-+4i,3.- i+ ,9S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 /8 ,9- Bi+/+<i/1 8,/,-@-+,8 /.- >.->/.-4 0+ ,9@04iBi-4 </89 ;/8i8 0B /<<03+,i+:. A11(7.2T9i8 /@03+, .->.-8-+,8 :0048 E 8-.*i<-8 ,9/, 9/*- ;--+ 4-1i*-.-4 ;3, +0 i+*0i<- 9/8 ;--+ .-<-i*-4 B.0@ ,9- 83>>1i-. /, ,9- .->0.,i+: 4/,- OR /+ i+*0i<- 9/8 ;--+ .-<-i*-4 ;3, .-@/i+8 3+>/i4 /, ,9- .->0.,i+: 4/,-. T9-8- /@03+,8 /.- +0, .-<0:+i8-4 i+ ,9- ;/1/+<- 89--, /8 / 1i/;i1i,2 0. /8 -=>-+4i,3.- i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 /8 ,9- Bi+/+<i/1 8,/,-@-+,8 /.- >.->/.-4 0+ ,9- @04iBi-4 </89 ;/8i8 0B /<<03+,i+: ;3, /.- 90C-*-. 4i8<108-4 /8 >/., 0B ,9- +0,-8 ,0 ,9- Bi+/+<i/1 8,/,-@-+,8. E*82%4'' 6')',0+"hort#term employee benefits T9- <08, 0B 890.,!,-.@ -@>102-- ;-+-Bi,8 i8 -=>-+8-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8 i+ ,9- .->0.,i+: >-.i04 C9-+ ,9- >/2@-+, i8 @/4-. S90.,!,-.@ -@>102-- ;-+-Bi,8 ,9/, :i*- .i8- ,0 / >.-8-+, 1-:/1 0. <0+8,.3<,i*- 0;1i:/,i0+ /.- 4-B-..-4 3+,i1 ,9-2 </+ ;- .-1i/;12 @-/83.-4 /+4 ,9-+ -=>-+8-4. D-,/i18 0B ,9-8- ;-+-Bi,8 /+4 ,9- >0,-+,i/1 1i/;i1i,i-8 /.- 4i8<108-4 /8 / +0,- ,0 ,9- Bi+/+<i/1 8,/,-@-+,8 /+4 /.- +0, .-<0:+i8-4 i+ ,9- S,/,-@-+, 0B C/89 R-<-i>,8 /+4 P/2@-+,8. N0 >.0*i8i0+ i8 @/4- B0. /<<.3-4 1-/*-. Termination benefits T-.@i+/,i0+ ;-+-Bi,8 /.- .-<0:+i8-4 /+4 -=>-+8-4 0+12 C9-+ ,9- >/2@-+, i8 @/4-. Retirement benefits T9- Mi+i8,.2 >.0*i4-8 .-,i.-@-+, ;-+-Bi,8 B0. i,8 -@>102--8 ,9.03:9 / 4-Bi+-4 ;-+-Bi, >1/+ B0. :0*-.+@-+, -@>102--8. T9-8- ;-+-Bi,8 /.- B3+4-4 ;2 ;0,9 -@>102-. /+4 -@>102-<0+,.i;3,i0+8. E@>102-. <0+,.i;3,i0+8 ,0 ,9- B3+4 /.- -=>-+8-4 C9-+ @0+-2 i8 >/i4 ,0 ,9B3+4. N0 >.0*i8i0+ i8 @/4- B0. .-,i.-@-+, ;-+-Bi,8 i+ ,9- Bi+/+<i/1 8,/,-@-+,8 0B ,9- Mi+i8,.2. Capitalisation reserve The capitalisation reserve represents an amount equal to the value of the investments and / or loans capitalised for the first time in the previous financial year. On disposal, repayment or recovery, such amounts are transferable to the Revenue Fund. Recoverable revenue Recoverable revenue represents payments made and recognised in the income statement as an expense in previous years due to non-performance in accordance ith an agreement, hich have no become recoverable from a debtor. Repayments are transferred to the !onsolidated Revenue Fund as and hen the repayment is received.

35

Authorization Date The financial statements ere authori"ed for issue on ## $onth %&&#'( by $r )), the $inister of Finance, $inistry of Finance, *saagia.

N%+'- +% +3' F0).)10.2 S+.+'*')+-

SECTOR 2 T.? ('&')7' A <0@>/.i80+ 0B /<,3/1 *8. ;34:-,-4 ,/= .-*-+3- i8 >.0*i4-4 3+4-. 8-<,i0+ 2.2.2 0B ,9i8 .->0.,. 3 N%) +.? ('&')7'

A <0@>/.i80+ 0B /<,3/1 *8. ;34:-,-4 +0+ ,/= .-*-+3- i8 >.0*i4-4 3+4-. 8-<,i0+ 2.2.3 0B ,9i8 .->0.,. 4 G(.)+-

D3.i+: ,9- 2-/. :./+,8 B0. 4i.-<, ;34:-, 83>>0., C-.- .-<-i*-4 B.0@ ,9- B0110Ci+: 40+0.8 /+4 i+,-.+/,i0+/1 /:-+<i-87 F(9 12 33" $24 461 2 #&1 "&1 43# 3& &$3 $3" 231 1 $&# 13# 4"" 5 $"4 526 2"" 1# 2&& &&& &&& 2$ 63& 4$1 2&& 1##>"46>!1">#84 B%((%90)/-

EU UN >-/<-A-->i+: D0+ U% BADEHIPC D->, R-1i-B R-B3+4 Si4/ HIPC G./+, B.0@ (0.14 B/+A T%+.2 5

B0..0Ci+:8 <0@>.i8- </89 i+B10C8 B.0@ ,9- >3;1i< ;/+A8 8i@i1/. 1-+4i+: /:-+<i-8 /+4 <0@@-.<i/1 i+8,i,3,i0+8 /+4 /@03+,8 0Ci+: i+ .-8>-<, 0B +0+!</89 /88i8,/+<- >.0*i4-4 ;2 ,9i.4 >/.,i-8. T9- ;0..0Ci+:8 0B ,9- G0*-.+@-+, /.- 1i8,-4 ;-10C7 D%*'-+01 876201 5'6+ A, 18, J/+3/.2 A44i,i0+/1 ;0..0Ci+: 43.i+: ,9- 2-/. I+,-.-8, <9/.:-4 B0. 2&1) R->/2@-+,8 43.i+: ,9- 2-/. A, 318, D-<-@;-. C%*8(0-0)/ %,@ 36 E-/ 135 "3" 61# #43 $2 "4" #16 $2" 3 52" #33 4"# #2 3## "36 "36 14">624>532>512

G0*-.+@-+, ;0+48 T.-/83.2 ;i118 L0/+8

5 252 21" 526 31 $"& $&& &&& 112 4&1 414 $#6 14">624>532>512

R'8.4.62' .- ,%22%9-@ (i,9i+ +-=, 0+- 2-/. AB,-. 0+- 2-/. ;3, Ci,9i+ ,C0 2-/.8 AB,-. ,C0 2-/.8 ;3, Ci,9i+ ,9.-- 2-/.8 AB,-. ,9.-- 2-/.8

34 52$ 125 155 2 4$6 #14 #5# 2 5&# 656 426 11& &#$ $36 &"3 14">624>532>512

E?+'().2 6%((%90)/ B/1/+<- /, ;-:i++i+: 0B 2-/. P.0<--48 B.0@ -=,-.+/1 ;0..0Ci+: 7 $isbursements for budget support $isbursements for pro%ect support T%+.2 8(%1''5- ,(%* '?+'().2 6%((%90)/ A447 I+,-.-8, >/2/;1L-887 R->/2@-+,8 L-887 D-;, .-1i-B A447 E=<9/+:- 1088 0+ ,./+81/,i0+ C2%-0)/ 6.2.)1'6 I)&'-+*')+-

2##6 F(9 #2# "24 $&# "#4 4 &41 353 262 42 "64 5"& $26 46>8#5>"24>188 5 4"6 642 321 54 542 614 65#6 55$3 "34 26# #656 25 $&# 1#2 26" 3#8>638>!!4>#3!

T9- G0*-.+@-+, 9/8 i+*-8,-4 i+ 33 :0*-.+@-+, ;38i+-88 -+,i,i-8. T9- 4i*i4-+48 .-<-i*-4 43.i+: ,9- 2-/. B.0@ 80@- 0B ,9-8- -+,-.>.i8-8 /.- 4-,/i1-4 ;-10C7 N.*' %, 1%*8.)4 M/:-.C/ B/+A 0B %i:/1i MTN R-4-@i '-> RS0+/.C/ BNR BCR AB.i</ R2##6 F(9 1# "5& &&& 4## $#1 111 234 $#2 "55 31 351 433 2& &66 "#& 3 5&& &&& 1 1&$ 4"" 126 24 164 426 4 "22 #45 1>"35>""6>4!6

O+3'( ('1'08+3"

O+3'( ('1'08+- 1%*8(0-' %, +3' ,%22%90)/ 0+'*-@ M/:-.C/ '-.0 ;/1/+<- .-<-i>,8 S9/.-4 .-<0*-.i-8 Mi8<-11/+-038 B--8 /+4 .-<-i>,8 R-B3+4 0B /@03+,8 1-+, ,0 ;/+A8 ;2 BNR B.0@ IDA <.-4i, B0. / @i<.0 <.-4i, >.0:./@@D-@0+-,iK/,i0+ 0>-./,i0+8 F3-1 >3.<9/8-4 B.0@ :0*-.+@-+, 8,0<A8 2##6 F(9 4 "6" #51 6&6 1$ 42" 441 ""1 525 $#" 4"1 4 4$6 1&# 461 153 &25 #"5 335 "41 &&& 246136$4#& 32>16!>525>664

P.4*')+- ,(%* %8'(.+0%)-

A <0@>/.i80+ 0B /<,3/1 *8. ;34:-,-4 -=>-+4i,3.- i8 >.0*i4-4 3+4-. 8-<,i0+ 2.3. 0B ,9i8 .->0.,. " N'+ ,0).)1' 1%-+2##6 F(9 I+,-.-8, 0+ 40@-8,i< >3;1i< 4-;, I+,-.-8, 0+ @0+-,/.2 0>-./,i0+8 I+,-.-8, 0+ -=,-.+/1 >3;1i< 4-;, T%+.2 1# B.)A .)5 1.-3 6.2.)1'3 4&& 6"2 45" 3 &3$ &3$ 463 5 4"6 642 321 11>"16>354>241

C/89 <0@>.i8-8 </89 0+ 9/+4 /+4 </89 -?3i*/1-+,8. C/89 i+<134-4 i+ ,9- 8,/,-@-+, 0B </89 .-<-i>,8 /+4 >/2@-+,8 <0@>.i8- ,9- B0110Ci+: /@03+,87 2##6 F(9 13 546 $#5 $$# ! !

B/+A ;/1/+<-8 /, BNR B/+A ;/1/+<-8 /, <0@@-.<i/1 ;/+A8 C/89 /, 9/+4E,./+8i, C%*8(0-0)/ %,@ L0</1 <3..-+<2 ;/1/+<-8 F0.-i:+ <3..-+<2 ;/1/+<-8 ! /, 10</1 ;/+A8 F0.-i:+ <3..-+<2 ;/1/+<-8 ! /, -=,-.+/1 ;/+A8

13 546 $#5 $$# ! !

3#

3$

Appendi( 0

Eight 6ey !ocuments Assessed by the Open Budget Sur5ey

The Fpen $udget Survey assesses whether governments produce and disseminate to the public eight key budget documents throughout the fiscal year. listing of these documents including good practices that they should follow is provided below0 A re.Budget Statement should be issued at least one month before the e"ecutive submits the budget proposal to the legislature. 't should present the assumptions used in developing the budgetG e"pected revenue, e"penditure, and debt levelsG and the broad allocations between sectors. The E7ecuti5e4s Budget roposal is the result of the formulation stage. 't presents the government*s detailed declaration of the policies and priorities it wants to pursue in the upcoming budget year, including specific allocations to each ministry and agency. 't should be submitted to the legislature at least three months prior to the start of the fiscal year to allow for proper review. The budget should be enacted prior to the start of the fiscal year. The Enacted Budget should then be made publicly available, as it is the legal document that authorizes the e"ecutive to implement the policy measures the budget contains. The budget is usually a lengthy, technical document. Thus governments should also publish a Citi8ens Budget, a simplified non-technical summary of the budget in languages and through media that are widely accessible to the public. There are three documents that governments should publish during the course of budget e"ecution. %irst, the e"ecutive should issue monthly or !uarterly "n.9ear &eports on revenues collected, e"penditures made, and debt incurred. These allow citizens to monitor whether the government is spending as much as promised on key sectors, as well as whether these funds are reaching the targeted institutions and beneficiaries. Second, the e"ecutive should publish a Mid.9ear &e5ie: to discuss any changes in economic assumptions that affect approved budget policies. %or e"ample, an une"pected change in the price of oil and gas can lead to huge revenue windfalls or shortfalls in resource-rich countries. Third, the e"ecutive should issue a 9ear.End &eport summarizing the situation at the end of the fiscal year. This compares the actual budget e"ecution to the <nacted $udget. The 7ear-<nd Aeport should include an update on progress in achieving the policy goals in the <nacted $udget. $est practice re!uires that a body that is independent from the e"ecutive issue an annual Audit &eport. The supreme audit institution should report its findings annually to the legislature, as well as to the general public. udit Aeports should cover all activities undertaken by the e"ecutive.

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