- 20 Marks
FM – L2 – Q125 – Public Financial Management
Discuss benefits of PEFA reports and methodology for measuring PFM performance in Zamara.
Question
(a) PEFA reports on countries’ PFM performance has gained prominence in Zamara in recent times. This is largely attributed to the robustness of its scoring methodology, the wide coverage of their measurements and factors considered in drawing conclusion of the status of a PFM system.
(i) Discuss the benefits of PEFA reports in promoting open and orderly PFM systems across the world.
(ii) Explain the methodology of PEFA in measuring PFM performance.
(b) A country performance of PFM dimensions are as follows:
(i) For the legislation scrutiny and audit indicator, a score of A, A and D were obtained on three dimensions. This indicator is measured using Method 1 (Weakest Link).
(ii) Budget preparation process as an indicator of PFM performance was measured using three dimensions and the scores obtained are B, C, D. This indicator is measured using method 2 (Average Method).
Required:
Compute the score of each indicator in (i) and (ii) for the country and interpret your result.
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