Back Matter

Appendix I.—List of Official Met During Mission

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Appendix II. Status Update of GFSM 2014 Implementation Plan

Project Objectives

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Project Outputs

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Appendix III. Institutional Structure of Rwanda’s General Government

Budgetary Central Government

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Extrabudgetary Units

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Social Security Funds

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Local Governments

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Appendix IV. FY 2013/14 Consolidated General Government Finance Statistics Dataset

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Appendix V. Roadmap for Implementing DMX Integrated Data Dissemination System

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Acronym Key:

AFR – IMF’s African Department

EAC – East African Community Secretariat

DMX – Statistical Data and Metadata Exchange

GFSM – Government Finance Statistics Manual

ODP – OpenData Platform

STA – IMF’s Statistics Department

Appendix VI. Documentation of the GFS Compilation Process for FY 2013/14

1. Budgetary Central Government

a. Tax revenue

Data on tax revenue were obtained by rearranging raw Rwanda Revenue Authority (RRA) data on tax revenue collections into a GFSM 2014 framework by using a mapping schedule of the RRA classification into the GFSM 2014 classification. Data on tax revenue were compiled into the file: “2013_14_RRA_Domestic Revenue.”

b. Grants

Grants are broken down into two categories of grants received by the Budgetary Central Government (BCG): (1) Current grants and; (2) Capital grants. Current grants data were obtained from the National Bank of Rwanda (BNR)’s foreign exchange cash flow statement (PDT) while data on capital Grant is obtained from the budget (Finance law). Data on grants were compiled and aggregated into the file: “2013_14_Rwanda_BCG_GFS_Dataset_Final.”

c .Other revenue

There are two sources for other revenue data: RRA and BNR. RRA data were rearranged in a GFSM 2014 framework using a mapping schedule of the RRA classification to the GFSM 2014 classification. BNR data in the expenditure and receipts of the treasury’s account report under the line “non tax revenue/RNF” were aggregated into the GFSM 2014 other revenue category of “Sales of goods and Services” under Administrative fees. All other non tax revenue data in the BNR’s expenditure and receipts of the treasury’s account report was aggregated into the GFSM 2014 other revenue category “Miscellaneous and unidentified revenue”.

Receipts from reimbursements for Peace Keeping Operations (PKO) were recorded into the GFSM 2014 other revenue category “Sales of goods and Services” under Incidental sales by nonmarket establishment.

Data on other revenue were compiled into the file: “2013_14_Rwanda_BCG_GFS_Dataset_Final.”

d. Expenses

Data on expense for: (1) compensation of employees, (2) use of goods and services, (3) subsidies, (4) social benefits, and (4) other expense are obtained from IFMS. However, although data on interest payments is also recorded in the IFMS, data used for GFS compilation purposes was obtained from DMFAS.

In order to clearly distinguish data on grants from BCG to other levels of government respectively for the local government (LG) and extra-budgetary units (EBU); a customized report was generated from IFMS showing total spending of LG and EBU in the national mode of IFMS. The aggregate spending for LG and EBU in the national mode of IFMS was then reported under BCG grants to other levels of government to LG and EBU respectively.

Data on expense were compiled into the file: “2013_14_Rwanda_BCG_GFS_Dataset_Final.”

e. Net Acquisition of Non financial assets (NANFA)

Data on NANFA are broken down into NANFA domestically and externally financed. Data on NANFA domestically financed were obtained by identifying data separately for acquisition of nonfinancial assets and disposal of nonfinancial assets. Data on acquisition of non financial assets were obtained from IFMS while data on disposal of nonfinancial assets were obtained from the MINECOFIN’s Government Portfolio Management Unit (GPMU). Data on NANFA externally financed were derived by summing up capital grants disbursements (obtained from Rwanda’s budget) and the incurrence of capital loans (obtained from DMFAS).

Data on NANFA were compiled into the file:“2013_14_Rwanda_BCG_GFS_Dataset_Final.”

f. Net Acquisition of Financial Assets (NAFA)

NAFA is reported in two distinctive financial assets instruments, namely: (1) currency and deposits; and (2) loans. Data on currency and deposits were obtained by computing the change in the government’s deposits data from the Depository Corporation Survey (DCS) of the banking sector. Data on acquisition of financial assets in the form of loans were obtained from the IFMS, while data on disposal of financial assets were obtained from MINECOFIN’s GPMU.

Data on NAFA were compiled into the file: “2013_14_Rwanda_BCG_GFS_Dataset_Final

g. Net Incurrence of Liabilities (NIL)

NIL distinguishes external and domestic incurrence and repayment of liabilities. Data on domestic NIL were reported in three distinct liabilities instruments, namely: Debt securities; loans; and other accounts payable.

  • Data on issuance and repayment of debt securities were obtained from DMFAS.

Data on loans were computed as the sum of the change in government claims on the government in the DCS, excluding debt securities held by banks, and the net issuance of nonbank loans data from DMFAS.

  • Data on other accounts payable were computed as the difference between total IFMS spending on an “Ordonnancement” basis and on a “Payment” basis.

Data on external NIL that distinguishes current and capital loans issuances and repayments, were obtained from DMFAS.

Data on NIL were compiled into the file: “2013_14_Rwanda_BCG_GFS_Dataset_Final.”

2. Local Government (LG)

All data on LG revenue, expense, and financing were obtained from IFMS and aggregated into a report produced by the Accountant’s General Department (AGD). To compile LG data into a GFSM 2014 framework, data from the AGD report on LG were rearranged in the following way:

  • On Revenue – data reported in the AGD report as taxes on payroll and workforce were reclassified into taxes on income, profits, and capital gains since LG (and for that matter no other government unit) collects taxes on payroll and workforce. Data reported in the AGD report as transfers from central government units and transfers from districts were recorded as grants, while transfers from independent projects were recorded as transfers. Grants received from local individual and organizations were recorded as transfers. Capital receipts were recorded as sales of non-financial assets while proceeds from borrowings were recorded as incurrence of liabilities.

  • On Expense – data reported in the AGD report as transfers to central government units and transfers to districts were recorded as grants, while transfers to independent development projects were recorded as transfers. Grants to local individuals and organizations were recorded as transfers.

  • On Financing – data reported in the AGD report on cash at bank, cash in hand, accounts receivables, and accounts payable were stocks data that had to be converted into flows by differencing opening and closing stock values.

Further to these rearrangements to comply with a GFSM 2014 presentation, LG data on Revenue were adjusted in the following way:

Tax revenue collected by RRA on behalf of LG amounting to FRw 6.8 billion that was initially recorded as grants from BCG to LG were recorded as taxes on income, profits, and capital gains for LG.

  • Grants from the Local Authority Development Agency (LODA) to LG amounting FRw 30.7 billion that was initially recorded as grants from BCG to LG were recorded as grants from international organization to LG.

Data on the local government were compiled into the file: “2013–14_Rwanda_LG&EBU_GFS_Dataset_Final.”

3. Extra Budgetary Units

For all data on EBUs in the IFMS, Revenue, Expense, and Financing are obtained from IFMS while data on EBUs not in the IMFS are aggregated together with data on EBUs not in the IFMS into a report produced by the Public Accounts Unit within the AGD. To compile EBU data into a GFSM 2014 framework, data from the AGD report on EBU were rearranged the same way they were rearranged for LG with the exception of taxes, since EBU do not collect any taxes.

Data on extrabudgetary units were compiled into the file: “2013–14_Rwanda_LG&EBU_GFS_Dataset_Final.”

4. Social Security Funds

There are two institutional units which integrate the subsector Social Security Funds: Rwanda Social Security Board (RSSB) and the Military Medical Insurance (MMI). To compile the accounts of both entities, the financial statements have been used.

Data on social security funds were compiled into the file: “2013–14_Rwanda_SSF_GFS_Dataset_Final.”

a. Rwanda Social Security Board (RSSB)

For the medical scheme, financial statements show inconsistencies that have not been explained. For revenue and expense, the statement of comprehensive income has been used and contains all data needed. In the case of the pension scheme, the contributions receivable are not divided between employer and employee contributions. However, as the law establishes that the employee contribution is 3% of the salary and employer contribution is 5%, the total has been split as 0.375 (3/8) being employee contributions and 0.625 (5/8) being employer contributions. In the case of the medical scheme, both employee and employer make the same contribution, so the total contributions received by the medical scheme have been split in two equal parts to have employer and employee contributions. Regarding NANFA, the statements of financial position for 2012/13 and 2013/14 have been used, calculating the net acquisition as the difference in the stock of non-financial assets at the end of both periods. While the total can be compiled from the tables, splitting of the different NANFA categories must be performed by reading notes from the financial statement.

For NAFA and NIL, the statements of financial position for 2012/13 and 2013/14 have been used in the same way as for NANFA. It is important in this case to bear in mind that two adjustments, with data coming from the statement of comprehensive income, have to be performed. As it is known, transactions in 2013/14 are equal to stocks at the end of 2013/14 minus stocks at the end of 2012/13minus other economic flows in 2013/14. There are two other economic flows, in particular profit gains and losses, to be taken into account:

  • Change in fair value of financial assets at fair value through profit or loss (33,780,659,546 RWF for the pension scheme in 2013/14; 1,265,594,703 RWF for the medical scheme).

  • Realized gain on disposal of assets: (4,194,492,697 RWF for the pension scheme and 9,409,282 RWF for the medical scheme).

b. Military Medical Insurance (MMI)

There is an important grant (in the form of a transfer of land valued at 3.7 billion FRw) given by BCG to MMI, which is not recorded as revenue of the MMI (in the financial statement, only the increase in nonfinancial assets is shown). The amount (nonfinancial assets transferred by the BCG to MMI) has to be recorded also as MMI grant revenue. It is worth mentioning that this grant is also not recorded as an expense in BCG’s accounts; an adjustment was added to BCG expense to recognize the grant. On the other hand, BCG’s estimates of NANFA are compiled from IFMS, which only accounts for cash transactions. Therefore, an adjustment was made to BCG’s NANFA to account for the disposal of the land to MMI.

For other items, the compilation of GFSM 2013/14 data from the financial statements is straightforward and follows the methodology indicated above for the RSSB.

Calendar year 2014 was used for the compilation of GFSM 2013/14 because MMI’s fiscal year is equal to the calendar year. Ideally, in order to have higher-quality statistics for FY 2013/14, a pseudo fiscal year could be created by averaging data from the 2013 and 2014 calendar year financial statements.

1

Although the source data for Revenue were provided on a cash (when received) basis by the Rwandan Revenue Authority (RRA), data for Expense, Net acquisition of nonfinancial and financial assets, and Net incurrence of liabilities were tabulated from IFMS on a “payment order” basis, which is an accrual-like accounting concept. This inconsistency in recording basis prohibited the compilation of a Statement of Sources and Uses of Cash for FY 2013/14. However, given sufficient time and the fact that IFMS can tabulate fiscal data on a payment (cash) basis, it is possible to produce a Statement of Sources and Uses of Cash.

2

Among nontax revenue, only interest and penalties on late payments of taxes are reported by the RRA.

3

Mission team members and the authorities collaborated to compile GFS from the AAFR.

4

Most EBUs are accounted for in IFMS. However, certain EBUs operate outside of IFMS, but report to the AGD. Finally, one EBU, the Rwanda Utility and Regulatory Authority(RURA), operates outside of IFMS, does not report to the AGD, and must be accounted for by compiling GFS from an AAFR.

5

SSFs are comprised of the Rwanda Social Security Board (RSSB) and Military Medical Insurance (MMI).

6

A payment order is usually issued and recorded in the IFMS at the moment the reporting BCG agency has availed itself of the goods or services provided. This data point represents the closest approximation to the accrual basis (defined as “change of economic ownership”) that the IFMS can provide. Payment is consistent with a cash basis of recording.

7

DMFAS is managed by MINECOFIN’s Debt Management Department.

8

IFMS is configured in two modes: A “national mode” and “local mode.” The “national mode” covers all transactions in the annual Finance Law, and reflects for EBU and LG spending that is financed by BCG. The “local mode” captures total spending.

9

Also, the BCG grant was not reflected in IFMS data.

10

Consolidation in this dataset is limited to Grants.

11

For example, Rwanda has experienced situations in which project grants were disbursed as planned, but execution of projects was temporarily halted due to unexpected external factors. This led to an unplanned accumulation of project deposits in the reporting period. In the following period, project execution was resumed at an accelerated pace to make up for the delays, leading to a sizeable drawdown of project deposits. Since no corresponding external grant inflow was recorded in the same period, project execution would unexpectedly increase the overall fiscal deficit even if it was completely financed by grants. While situations like this greatly complicate fiscal policy management, they are not, in a strict sense, a data reconciliation issue, as they can occur even if all flows and transactions are reported and recorded correctly.

12

Even when the disbursement information is provided fast, it may differ from project coordinators’ disbursement requests, requiring further time-consuming reconciliation.

13

An SPIU has yet to be established for the important Ministry of Infrastructure.

14

Initially, the reporting frequency could be bi-annual or quarterly, allowing for stabilization of monthly data through revisions before they are submitted. As in any statistical reporting system, it is understood that best- effort timely data submissions are provisional in nature and can (should) be amended on the power of additional new information.

15

The timeliness of annual and high-frequency reporting for the general government sector can be facilitated and assured through the use of existing data collection templates that were designed by MINECOFIN.