Annex 2. Risk consideration checklist Risk Consideration Indicator Comment No. Indicator High risk Significant risk Moderate risk Low risk risk level No Yes 1 The annual budget contains all significant government expenditures, including relevant donor contributions 2 Budget and Budget decisions are Budget decisions are performance only nominally fully debated with debated. Little assistance from expert consideration of committees. Full previous performance consideration of is taken into account previous performance is when setting future taken into account when budgets. setting future budgets. 3 Budget execution Government Government Government Government historically historically does not historically executes historically executes budgets as execute budgets as budgets as planned, executes budgets planned without planned. but there are as planned with exceptions. significant limited exceptions. exceptions. 4 To what extent are Procedures are Procedures are Procedures are Always. frequently generally followed, generally internal controls and financial procedures or ignored. but there are followed. While adhered to? Emergency significant exceptions exist, procedures are exceptions. Doubt they are not routinely used. exists as to whether frequent enough to or not the internal prevent reliance on control system can the internal control be relied upon. system. 5 Bank reconciliations Many accounts are A number of Generally banks Performed to a high not reconciled significant accounts are properly standard for all bank monthly. are not reconciled reconciled each accounts at least once a Reconciliations are month. month.
Annex 2. Risk consideration checklist Risk Consideration No. Indicator High risk Significant risk Moderate risk Low risk Indicator risk level Comment 1 The annual budget contains all significant government expenditures, including relevant donor contributions No Yes 2 Budget and performance Budget decisions are only nominally debated. Little consideration of previous performance is taken into account when setting future budgets. Budget decisions are fully debated with assistance from expert committees. Full consideration of previous performance is taken into account when setting future budgets. 3 Budget execution Government historically does not execute budgets as planned. Government historically executes budgets as planned, but there are significant exceptions. Government historically executes budgets as planned with limited exceptions. Government historically executes budgets as planned without exceptions. 4 To what extent are internal controls and financial procedures adhered to? Procedures are frequently or ignored. Emergency procedures are routinely used. Procedures are generally followed, but there are significant exceptions. Doubt exists as to whether or not the internal control system can be relied upon. Procedures are generally followed. While exceptions exist, they are not frequent enough to prevent reliance on the internal control system. Always. 5 Bank reconciliations Many accounts are not reconciled monthly. Reconciliations are A number of significant accounts are not reconciled Generally banks are properly reconciled each month. Performed to a high standard for all bank accounts at least once a month.