## Terms of Reference for GFSM Update Task Teams

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**Canonical URL:** [Terms of Reference for GFSM Update Task Teams](https://www.imf.org/-/media/files/data/statistics/gfsm/task-teams-gfsm2014-update-terms-reference.pdf)

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### Mandate
- The task team will contribute to the work related to updating the IMF’s Government Finance Statistics Manual 2014 (GFSM 2014) by providing technical inputs and recommendations on the specific research projects assigned to the task team.
- The initial assignment of research projects is set out in Annex 1 of these terms of reference, based on the published List of Research Projects for Updating the GFSM 2014, although the task team research projects may be modified during the update work with the agreement of the IMF’s Government Finance Statistics Advisory Committee (GFSAC).

### Membership and Secretariat
- Composition:
  - The task team will consist of members and two co-chairs.
  - Co-chairs and task team members may be drawn from IMF’s GFSAC, IMF member countries, international organizations (including the IMF), as well as experts in fiscal reporting and other macroeconomic and related statistical domains.
  - The total number of task team members will be decided by the IMF Statistics Department and the task team co-chairs.
- Appointment and selection:
  - Co-chairs and task team members may be proposed by IMF’s GFSAC, IMF member countries and/or international organizations.
  - Appointment of task team members is the sole preserve of the IMF Statistics Department.
  - Selection will consider background, expertise, and geographical balance.
- Terms:
  - Co-chairs and members work on a voluntary basis and shall not be remunerated by the IMF.
  - The secretariat for the task team will be provided by the IMF Statistics Department.

### Deliverables
- For each assigned research project the task team will prepare:
  - One discussion note.
  - One proposed recommendations document.
- Discussion notes:
  - One discussion note per research project.
  - Aim: clearly and succinctly convey issues to technical experts, compilers, and users to encourage informed discussion and develop well-supported recommendations.
  - A template of the Discussion Note is provided in Annex 2.
- Proposed recommendations documents:
  - Prepared after global consultation on the discussion note.
  - To be reviewed and endorsed by the GFSAC.
  - Should clearly explain the issue and the proposed recommendation(s), highlight GFS implications from compilation and fiscal analysis perspectives, and avoid unnecessary repetition of the related discussion note.
  - A template of the Proposed Recommendations Document is provided in Annex 3.

### Timelines and Reporting
- Deadlines for discussion notes will be determined once the task team is established.
- Task Team co-chairs must provide quarterly updates to the GFSAC on progress for each research project; a template for updates will be prepared by the GFSAC Secretariat.
- General timing guidance:
  - The research and development stage of preparing a discussion note should take no more than 3-4 months, including development and task team discussions.
  - It is recommended that a first draft of the discussion note be prepared within 2 months of the start of the research project.
  - GFSAC should receive the discussion note, agreed by the task team, no later than 4 months after the start of the research project.
  - If amendments are required after GFSAC’s review, the task team will make these changes within 1 month.
  - Once endorsed by the GFSAC, global consultation of the discussion note will take place, lasting 1 month; the consultation will be managed by the GFSAC Secretariat.
  - The task team will prepare the proposed recommendations document reflecting feedback received, within 1 month after the end of the global consultation.

### Working Procedure and Decision Rules
- Process:
  - Working procedures and sequencing are outlined in the published Process and Timeline for Updating the GFSM 2014.
  - IMF Staff have prepared Project Initiation Documents (PIDs) for each research project; task teams will use PIDs to develop discussion notes exploring issues and options and include recommendations.
  - Co-chairs decide organization of draft development, including assigning individuals or sub-groups; all drafts must be shared with the task team for review prior to sharing with GFSAC.
  - Recommendations in discussion notes should be agreed within the task team through written consultations and/or virtual meetings; task teams should strive for consensus.
  - Where substantive disagreements exist, these should be noted in the discussion note prior to sharing with the GFSAC.
- Review and endorsement:
  - The GFSAC reviews all discussion notes and may request revisions.
  - Final decision to endorse a discussion note as ready for global consultation lies with the GFSAC.
  - The GFSAC Secretariat manages global consultation and shares results with the task team.
  - If consultation supports task team recommendations, the task team prepares a proposed recommendations document showing how they will be adopted for integration into the updated GFSM.
  - If consultation shows divergence, the GFSAC will decide whether alternative recommendations should be adopted or further research is required; if further research is required, the task team conducts it and revises the discussion note and recommendations for further review.
- Dispute resolution:
  - The final decision on endorsing discussion note recommendations resides with the GFSAC.
  - If no consensus can be reached after iterations, the dispute resolution mechanism takes effect: the Chair of GFSAC makes a final ruling on how to proceed.
  - If the Chair concludes that a decision cannot be reached, the default position is to leave the current discussion in GFSM 2014 on that research project unchanged.
- Logistics:
  - Work carried out through virtual meetings and emails.
  - Working language: English (no translation of documents or interpretation during video conferences).

### Annex 1 — Task team research projects (proposed agendas, ranked)
- GFS Compilation Task Team (ranked list):
  1. 2.1 Boundary between government and nonfinancial public corporations
  2. 2.14 Treatment of public private partnerships (PPPs)
  3. 2.21 Social Security Schemes
  4. 2.22 Government assumption of pension obligations
  5. 2.23 Employee benefits – defined benefit schemes
  6. 2.17 Boundary between capital and current transfers
  7. 2.6 Defining and subclassifying extrabudgetary units
  8. 2.7 Government or public nonlife insurance schemes
  9. 2.5 Treatment of zakat
  10. 2.3. Indigenous governments
- Debt and Other Monetary and Financial Topics Task Team (ranked list):
  1. 2.8 Debt valuation issues
  2. 2.15 Treatment of capital injections by government into corporations
  3. 2.2 Boundary between government and financial public corporations
  4. 2.11 Recording of provisions and contingent liabilities
  5. 2.9 Debt assumption and debt payments on behalf of others
  6. 2.13 Equity for public corporations
  7. 2.10 Valuation and recognition of loans
  8. 2.16 Treatment of privatization
  9. 2.12 Stock positions and related flows with the IMF and other regional / international organizations
  10. 2.4 Transactions with sovereign wealth funds (SWFs)
- Environmental Topics Task Team (ranked list):
  1. 2.19 Accounting for natural resources and their exploitation in GFS
  2. 2.18 Recording and valuation of infrastructure assets
  3. 2.20 Climate-sustaining and climate-damaging subsidies and other transfers
  4. 2.26 Presentation of GFS flows related to natural resources
- Fiscal Analysis and GFS Communication Task Team (ranked list):
  1. 2.32 Balance sheet analysis
  2. 2.31 GFS within fiscal analysis and policymaking
  3. 2.25 Communicating GFS to users
  4. 2.27 Relationship between GFS and IPSAS
  5. 2.30 Methodological guidance on compilation and analyzing SOE data
  6. 2.24 A framework for the presentation of GFS metadata
  7. 2.28 Tax expenditures, tax deferrals, and other similar incentives
  8. 2.29 Retained earnings of public corporations and their impact on fiscal analysis

### Annex 2 — Discussion Note (DN) template requirements
- Length and format:
  - Typically 6 to 12 pages; should not be longer than 20 pages; additional annexes permitted if short and focused.
  - Typeface: Arial, size 10.
  - Lines and Paragraphs: Numbered, with multiple line spacing set at 1.25.
- Required sections and guidance:
  - Summary Details: Task Team Responsible; Authors of Discussion Note.
  - Summary of Issues and Draft Recommendations: short bullet point synopsis.
  - Background and Issues: generally no more than four pages; prose with optional bullets, tables, figures.
  - Options Identified to Address Issues: main component; describe approaches with pros and cons; one option may be to keep current GFSM 2014 guidance.
  - Draft Recommendations (with rationale): succinct explanation of preferred option(s); generally not longer than two pages.
  - Proposed Text for GFSM Update [Optional]: include specific proposed text where possible; optional.
  - Questions for Global Consultation: bullet point format.
  - Additional References [Optional]: bullet point format with hyperlinks where possible.
  - Annexes [Optional]: short and focused supporting material.

### Annex 3 — Proposed Recommendations (PR) template requirements
- Length and format:
  - Typically 2 to 4 pages; should not be longer than 6 pages; annex permitted if required.
  - Typeface: Arial, size 10.
  - Lines and Paragraphs: Numbered, with multiple line spacing set at 1.25.
- Required sections and guidance:
  - Summary Details: Related Guidance Note (SNA/BPM) or Discussion Note (GFSM); Global Consultation(s); Discussions at AEG / BOPCOM / GFSAC as relevant.
  - Summary of Proposed Recommendations: short bullet point summary.
  - Background and Issues: brief summary highlighting salient points; not longer than two pages.
  - Proposed Recommendations: detail each proposed recommendation; typically fits on one side of paper; often bullet points.
  - Rationale for Proposed Recommendations: brief explanation referencing discussion/guidance note and consultations; typically one side of paper.
  - Proposed Text for GFSM Update [Optional]: include specific text where possible; optional.
  - Additional References [Optional]: bullet point format (exclude documents already referenced at head of document).
  - Annex [Optional]: short, focused supporting material.

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_Source: https://www.imf.org/-/media/files/data/statistics/gfsm/task-teams-gfsm2014-update-terms-reference.pdf_