How to Check Integrity of Fiscal Data

IMF How To Notes, November 4, 2016

Source details

The accuracy and reliability of government accounts and fiscal data is an issue in a number of countries, with significant and persistent discrepancies that can indicate underlying weaknesses in the country’s public financial management system.
The note provides guidance on how to detect issues with data quality, perform integrity checks, and reconcile fiscal data from various sources.
It discusses the importance of reconciliation to provide reasonable assurance on the quality and reliability of government fiscal data, explores the main reasons for which discrepancies may arise, and explains how to conduct quality checks.
The note concludes with recommendations for country teams of concrete steps to ensure data quality.

Reconciliation is important to provide reasonable assurance on the quality and reliability of government fiscal data.
Significant and persistent discrepancies in fiscal data can indicate underlying weaknesses in public financial management systems.
Key technical focus areas include:
- balances of suspense accounts
- bank account and bank reconciliation
- year-end cash balance
- cash deficit reporting
- treatment of public debt and government debt in fiscal statistics

Discrepancies may arise from weaknesses in the accounting system, treatment of suspense accounts, incomplete or inconsistent bank reconciliations, and differences in revenue code application.
Sectoral and regional variations (for example, Africa; Asia and Pacific; Europe; Middle East and Central Asia; Western Hemisphere) can influence the nature and sources of discrepancies.

Detect issues with data quality through systematic integrity checks and reconciliation across sources.
Perform bank reconciliation and investigate balances of suspense accounts.
Reconcile fiscal data from various sources to identify and explain differences.
Use quality checks to provide reasonable assurance on the reliability of government fiscal data.

Implement concrete steps to ensure data quality, including:
- Regular reconciliation procedures across accounting and bank records.
- Close monitoring and clearance of suspense accounts.
- Standardization and consistent application of revenue codes and accounting treatments.
- Strengthening public financial management processes where persistent discrepancies are identified.

Authors: Pokar D Khemani, Benoit Wiest
Date: November 4, 2016
Pages: 19
Volume: 2016
Issue: 004
Series: How-To Note No. 2016/004
DOI: https://doi.org/10.5089/9781475546736.061
Stock No: FADHTNEA2016004
ISBN: 9781475546736
ISSN: 2522-7912
Subjects: Budget planning and preparation; Economic and financial statistics; Financial statistics; Fiscal accounting and reporting; Government finance statistics; Public debt; Public financial management (PFM)
Keywords: accounting system, Africa, Asia and Pacific, balance, balances of suspense accounts, bank account, bank reconciliation, Budget planning and preparation, bullet, cash deficit, central bank, debt, Europe, FADHTN, Financial statistics, Fiscal accounting and reporting, government debt, Government finance statistics, HTN, Middle East and Central Asia, revenue code, suspense account, Western Hemisphere, year-end cash balance

Source: How to Check Integrity of Fiscal Data, IMF How To Notes (2016), Authors: Pokar D Khemani and Benoit Wiest, November 4, 2016.

Fiscal Policy: How to Check Integrity of Fiscal Data; How-to Note No. 4; November 2016
- Fiscal Policy: How to Check Integrity of Fiscal Data; How-to Note No. 4; November 2016 (Markdown version)
- Fiscal Policy: How to Check Integrity of Fiscal Data; How-to Note No. 4; November 2016 (PDF)