- 20 Marks
Explain the two methods for scoring PEFA indicators and provide two advantages of each.
Question
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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