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1.2.3 Products of statistical agencies/units are clearly identified as such.
• Statistical products are clearly identified so that the public is aware of what the data producing agency takes responsibility for.
The NBS guarantees that all statistical products are clearly labeled and thoroughly documented. Fiscal statistics, under the GFS framework, are specifically marked as NBS outputs, allowing users to recognize the agency's responsibility for data accuracy and reliability.
1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques.
• Users of statistics are made aware in advance of major changes in methodology, source data, and statistical techniques.
NBS gives advance notice of any major changes in methodologies data sources and statistical techniques used to prepare GFS to the data users. Public and key stakeholders are informed prior to any change through public notice, workshops and meetings in order to comment on the proposed new base methodology.
Metadata reports are shared with users on the NBS website and during dissemination workshop of the GFS statistics.
1.3 Ethical standards
1.3.1 Guidelines for staff behaviour are in place and are well known to the staff.
• A clear set of ethical standards has been prepared.
The NBS has developed a comprehensive set of ethical standards such as staff regulation, code of ethics and conducts which are designed to guide management and staff. These set of ethical standards are documented and publicly available, ensuring transparency.
• Staff are made aware of the ethical standards.
The NBS staff are made aware of ethical standard principles and guidelines set by the organization under the Code of Ethics and Conducts for Public Servant. The guiding rules and ethical standard provided and they are periodically reminded during the staff
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meetings to maintain the standards. However, during the recruiting the new staff, induction course is provided in order to understand public servant ethics.
- Methodological soundness
2.1 Concepts and definitions
2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices.
• Concepts and definitions used to compile the statistics are in broad conformity with guidelines outlined in the GFSM 2014
The compilation of Government Finance Statistics (GFS) follows the concepts and definitions outlined in the Government Finance Statistics Manual 2014 (GFSM 2014) and EAC Guidelines for Compilation of Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS). This ensures a consistent, reliable, and internationally comparable approach to recording and analyzing government finance statistics.
2.2 Scope
2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines or good practices.
• The scope of the statistics is broadly consistent with guidelines outlined in the GFSM 2014.
The compilation of GFS covers general government sectors even though the dissemination covers only budgetary central government. The GFS data are compiled, and the IMF annual GFS questionnaire is used to fill the tables as required. The tables comprise information on revenue, expenses, transaction in non-financial assets, acquisition of financial assets and incurrence of liability.
The compilation process is consistence with Government Finance Statistics Manual 2014 and EAC Guidelines for Compilation of
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Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS).
• GFS covers all economic stocks and flows of units within its scope—at least to the standard specified in the following tables in GFSM 2014 (see also GFSM 2014 Appendix).
GFS covers above the line items (revenue, expenses, transaction in nonfinancial assets) and below the line items (acquisition of financial assets and acquisition of liability). However, the valuation of nonfinancial asset stocks in GFS does not fully cover changes in the volume of these assets, resulting in an incomplete representation of the total nonfinancial assets. In contrast, the stocks of financial assets and liabilities are comprehensively covered in the Public Sector Debt Statistics (PSDS).
2.3 Classification/sectorization
2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices.
• Classification and sectorization used for the statistics are in broad conformity with guidelines outlined in the GFSM 2014.
The classification of revenue, expenses, transactions in nonfinancial assets, acquisition of financial assets, and incurrence of liabilities, as well as the Classification of the Functions of Government (COFOG), are aligned with the Government Finance Statistics Manual (GFSM) 2014. The sectorization of institutional units follows the guidelines set in the GFSM 2014. These sectorizations are published in the Public Sector Institutional Table, which is updated annually.
• Revenue, expense, nonfinancial assets, financial assets and liabilities, and stocks and flows are classified using the methodology set out in the GFSM 2014 and the Public Sector Debt Statistics Guide. Revenue, expense, transaction in nonfinancial assets, acquisition of financial assets and incurrence of liabilities, and stocks and flows are
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classified using the methodology set out in the GFSM 2014 and the Public Sector Debt Statistics Guide 2013.
2.4 Other quality management
2.4.1 Market prices are used to value flows and stocks.
• Valuation rules used for recording transactions follow the principle of market valuation outlined in the GFSM 2014.
The valuation rules used for recording transactions adhere to the principle of market valuation as outlined in the GFSM 2014. Flows recorded in the Statement of Operations are valued at the market prices at which these flows take place. Stock positions are valued at the market prices prevailing on the balance sheet date.
2.4.2 Recording is done on an accrual basis.
• Transactions are recorded on an accrual basis.
In GFS modified cash basis is used in recording of transaction. In
accounting, the accrual basis is fully implemented but in budgeting
process it is still in cash basis.
2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices.
• The recording of transactions follows guidelines of the GFSM 2014. The recording of flows and stocks in GFS largely aligns with the standards outlined in GFSM 2014.
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- Accuracy and Reliability
3.1 Source data
3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions.
• The data collection programs employed to compile Government Finance Statistics are adequate.
The data source for GFS is administrative records which include budget information, charts of accounts, financial statements, banking records are adequate for the compilation of General Government. The Public Sector Institutional Table (PSIT) which include the list of public entities (Budgetary Central Government, Extra-budgetary Units, Local Government Authorities, Social Security Funds and Public Corporations) is updated annually to ensure the full coverage of source data is maintained.
• The data collection programs are sufficiently open and flexible to provide for new developments in sources.
The PSIT which is the base of data sources is reviewed annually by the Government Finance Statistics Techical Working Group (GFS- TWG) to ensure that data collection system remains comprehensive. International standards including GFSM 2014, EAC guidelines, and practices are monitored for changes that need to be taken into account in the GFS compilation system.
Most of necessary data for compiling GFS at various levels of government are from the Office of Accountant General (ACGEN), therefore, GFS compilers make consultion with the ACGEN in case of changes in source data that may affect the statistics.
3.1.2 Source data reasonably approximate the definitions, scope, sectorization, classifications, valuation, and time of recording required.
• Source data reasonably approximate internationally accepted good practices for compiling government finance statistics.
Source data are consistent with international guidelines on the definitions, scope, sectorization, classifications, time of recording, and valuation of flows and stocks as outlined in GFSM 2014 and the
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PSDSG 2013 whereby chart of accounts for BCG is mostly aligned with GFS classifications. The source data are also sufficiently detailed that allow classification for compiling and consolidating the financial flows and stocks statistics for the general government.
• Information is available on how the supplementary data sources differ from those of internationally accepted good practices.
Sufficient detailed data for compiling GFS at general government level are obtained from relevant government data sources, therefore, there is no need of adjustment process and supplementary data sources.
3.1.3 Source data are timely.
• The data collection systems provide timely data
Annual data collection is done nine (9) months after ending the financial year allowing the data producers sufficient time to prepare the financial statement for submission to the Controller and Auditor General (CAG). The compilation and dissemination of GFS are done on time for the production of Statistical Abstract and other macroeconomic publication. Procedures for data collection as described in GFS and PSDS Business Process and Revision Policy are followed to ensure the timely delivery of data.
3.2 Assessment of source data
3.2.1 Source data including censuses, sample surveys, and administrative records are routinely assessed, e.g., for coverage, sample error, response error, and non-sampling error; the results of the assessments are monitored and made available to guide statistical processes.
• Accuracy of the source data from reporting government units and other supplementary sources is routinely assessed.
During the compilation of GFS, the TWG review data sources to check consistency and resolves any outstanding issues related to the accuracy of source data through direct contacts with data provider. The automated annual GFS questionnaire also test the internal consistency of each level of data.
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• Appropriate measures are taken to assess the source data.
During the consolidation of General Government data, GFS TWG is assessing source data by comparing the list of public institutions that receive fund from Exchequer Unit with source data that are collected for compilation purpose. The TWG also cross check the intergovernmental transfers whereby any inconsistencies detected are corrected with the cooperation of the reporting institutions and explanations is provided when necessary.
3.3 Statistical techniques
3.3.1 Data compilation employs sound statistical techniques to deal with data sources.
• Data compilation procedures are sound.
Compilation procedures followed as per GFSM 2014 whereby the bridge table from chart of account to relevant GFS and COFOG codes is used to ensure proper classification so as to minimize processing errors. Usually, the actual data from the Government source data are used, therefore, no adjustments or estimate done on missing data.
Preliminary data are subsequently replaced by the audited data from the Controller and Auditor General Office for each period become available. However, compilers attempt to achieve an appropriate balance between accuracy and timeliness. Compilation procedures are fully documented through the GFS and PSDS Business Process.
3.3.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques.
• Sound adjustments are employed to make source data consistent with government finance statistics requirements.
GFS TWG ensure the source data are consistence by aligning the list of source data collected with the list of reliable public institutions from Exchequer Unit, therefore, there is no any adjustment being employed to adjust the source data.
• Data adjustments and transformations are made using sound techniques.
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The appropriate bridge tables have been constructed and used to facilitate the proper classification of data, however, data are not transformed and adjusted.
3.4 Assessment and validation of intermediate data and statistical outputs
3.4.1 Intermediate results are validated against other information where applicable.
• Intermediate results are validated against other independent data sources.
GFS TWG validated data from the main sources before used to compile GFS where any statistical discrepancies that arise are addressed. However, data validation against other data sources was not achieved
3.4.2 Statistical discrepancies in intermediate data are assessed and investigated.
• The behaviour of series is cross-checked with related series/indicators.
Financial assets and liabilities are reconciled with changes in the corresponding stock data while data on nonfinancial assets are not reconciled due to inexistence of incomplete assets register. GFS classification codes and PSIT used as a guide to minimize classification or sectorization errors.
3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated.
• Statistical discrepancies are monitored.
Statistical outputs in the automated IMF GFS Questionnaire is checked horizontally and vertically to reduce discrepancies, then the fiscal data discrepancies are reconciled from Integrated Financial Management Information System (IFMIS) and Government Ceiling reports from Exchequer Unit. Values that are not within expected ranges are identified and investigated.
• Bilateral comparisons/reconciliations are conducted with data of other countries and international organizations.