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PSAF – L2 – Q2.4- Public expenditure and financial accountability framework

Explain the two methods for scoring PEFA indicators and provide two advantages of each.

PEFA employs a robust methodology in developing its framework for assessing public financial management performance in the public sector. It uses two methods to convert dimensions into indicators.

Required:

(a) Explain the two methods used in scoring indicators under the PEFA framework and provide two advantages of each.

(b) In a recent PEFA assessment, a country received the following scores for the Indicators of Accounting and Reporting:

 

Indicator Score
Financial data integrity D
In-year budget reports C
Annual financial reporting D

Required:

(i) Discuss the performance of the country in relation to the accounting and financial reporting pillar of public financial management.

(ii) Suggest a practical way of improving performance in each of the indicators.

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