1. Open and Inclusive Budgeting – Working beyond boundaries Centurion, South Africa 10 th – 11th June 2015 Session 7 Setting the scene for effective accountability: Transparency in budget execution and audit CABRI – IBP Workshop

2. Key Budget Documents CABRI – IBP workshop2 Executive’s Budget Proposal Citizen’s Budget Enacted Budget In-year reports Mid-year review Year-end Report Audit Report Pre-budget statement When? Within at least one month of the end of the period they cover. When? Within at least six weeks of the end of the period it covers When? Within at least six months of the end of the period it covers When? Within at least one year of the end of the reporting period

3. The 4 Key Documents in Budget Execution - Content CABRI – IBP workshop3 In-year reports Mid- Year Review Measure of trends in revenue and expenditure totals to date with some explanation of any significant deviations from expectations Borrowing activities Comprehensive assessment of actual spending and revenue collection against original estimates at midpoint of budget year Revisions in assumptions and their impact on budget estimates Comprehensive identification and explanation of deviations

4. The 4 Key Documents in Budget Execution - Content CABRI – IBP workshop4 Year- end Report Audit Report Comprehensive assessment of actual spending and revenue collection agst original estimates at end of the budget year Overall position of government’s assets and liabilities Summary of government spending by sector and programmes Non-financial information on government’s performance Independent and authoritative assessment of budget execution Commentary on accuracy and reliability of govt financial statements Valuable resource for legislative, civil society, and media analyses Lists recommendations for rectifying problems identified by audit; tracks status of previous audit recommendations

5. Transparency in Budget Execution: Findings and Common Challenges 5 Delays Monthly budget implementation reports: sometimes published late. (Tunisia) Delays in production of Annual Financial Statements (End-Year Report) – difficulties with IFMIS (Tunisia) or poor quality of financial statements (Kenya) => Snowball effect on audit report (Tunisia, Kenya) SAI capacity constraints and lack of clear roles and responsibilities – audit bill (Kenya)

6. Transparency in Budget Execution: Findings and Common Challenges 6 Internal production vs. publication Mid-year Review: Activity does exist but not formalised in a report (Tunisia) Ad-hoc audits reports/ annual debt reports not published (Tunisia; DRC) Budget revisions could be consolidated in supplementary budget, allowing for formal mid-year update on budget. (Kenya) Year-end report: Submitted to parliament but not published (DRC)

7. Transparency in Budget Execution: Findings and Common Challenges 7CABRI – IBP workshop Content – What information is missing? Non-financial information; Debt sustainability analysis ; Staffing; Details of subsidies granted in terms of public interventions; Monitoring of large-scale projects (Tunisia) Financial and non-financial information related to payroll/salaries; public procurement (DRC) Comparability challenges in fiscal outturn information vs. budget information and across fiscal years (Kenya) Differences in budget implementation reports submitted by ministries and those drawn from IFMIS for identical time periods. (Kenya) Specific inclusions in budget and outturn information: extra-budgetary funds, transfers to local governments; financial assets; the financial affairs of state corporations, contingent liabilities and donor contributions (Kenya)

8. CABRI-IBP Workshop Thank you 8