Annex B: A Diagnostic Questionnaire

To improve the effectiveness and efficiency of programs and provide better local
government accountability, the first step(s) are to implement sound budget process, and effective
management (internal, external) control systems. Although it is beyond the scope of this brief
report to design a multi-pronged local government [public finance] accountability program with
full diagnostics, the following section provides a brief questionnaire with respect to some of the
necessary diagnostic tools. The diagnostic tool represents the first step in a multi-pronged
approach. A more rigorous two-stage approach should be used: the first stage would be to fully
document the existing system using the diagnostic tool as the foundation, and the second stage
would assess each element of the system, and design improvements according to national
priorities.
The brief questionnaire below is believed to be faithful to the principles of public finance
and government budget accountability. Each diagnostic tool should be designed to accommodate
different developing countries. However, a diagnostic questionnaire should include the
following basic elements: comprehensiveness (the budget should include all revenue and
expenditure); accuracy; authoritativeness (public funds should be spent as authorized by law);
and transparency (the government should publish timely information etc.). A program which
implemented improvements based on the use of the questionnaire would have all the technical
tools needed to improve its public financial management performance and enforce disciplined
financial management. Technical tools alone do not guarantee local government [public
financial] management accountability; the other key ingredients include well-trained and highly
motivated staff and, above all, political will and strong focused leadership.
This limited diagnostic tool [questionnaire] is provided as an example of the type and
manner of diagnostic tools available. This diagnostic questionnaire is not intended to be an
exhaustive (or comprehensive list) but merely an example of some of the tools available. The
questionnaire can (and should) be expanded to include a broader range of diagnostic tools.

Table 3 Example of a Diagnostic Questionnaire

Greetings!
Thank you for allowing us to communicate with you. We are conducting a survey on
behalf of the Master of Public Administration on a variety of topics. The results of this
survery will help us see the ongoing result or Operational effectiveness of Public
Financial Management System of LGU Koronadal. This study is being conducted for
research purposes only and be monitored for quality purposes. Please answer the
question as honest as possible. Truthful response would provide strong bases in
continuing or correcting the program. We assure you that all responses will be held
strictly confidential. God Bless us all!

Please provide correct information for each item:

PART I
Personal Information:
First Name
__________________________________________________
Last Name
__________________________________________________
Middle Name
__________________________________________________
Age

__________

Sex

____ Male

____Female

Civil Status

____Single

____Married _____Widowed/Widower

____Separated

Educational Attainment:
____ Elementary

_____ High School

____Technichal/Vocational _____Associate Degree

____Masters Degree

_____ Doctorate Degree

_____College Undergraduate
_____Collage Graduate

DIAGNOSTIC QUESTIONNAIRE

DIAGNOSTIC
AREA
A. Budget
Legislation

B. Scope of the
Budget

D. Measuring and
Monitoring the
Government
Deficit and Debt

E. Budget
Execution and
Monitoring

QUESTION
Provide a clear and comprehensive definition of
public money?
Establish the following elements of
intergovernmental fiscal relations?
Basic principles of supervision, intervention and
audit responsibilities;
That budget accounting classifications are
coherent and common to all levels of
government?
Establish the definition of budget deficit and
surplus, which excludes borrowings from receipts
and excludes repayments for principal from
expenditure?
Provide a legal basis for management (internal)
control and internal audit?
Defines the authorities and responsibilities for
issuing and reporting on government guarantees?
Clearly defines appropriation and spending
authority?
All transactions of statutory extra-budgetary funds
with the budget?
All fiscal transfers to sub national governments for
general and special purposes are defined?
Does the budget document include:
Fiscal policy objections
Complete information on past and projected
spending
Complete information on financial plans and
operations of statutory extra-budgetary funds
A statement of contingent liabilities
Are there figures released for different fiscal
balance definitions?
Are the fiscal definitions calculated on a cash or
accrual basis?
Do government data allow a clear distinction to be
made between domestic and external debt?
Which Agency is responsible for contracting and
managing debt?
Is it the same Agency that is in charge of
guarantee debt?
Are there laws, regulations and procedures that:
Ensure that all public revenues are directly
deposited;
If separate bank accounts are permitted, who is
responsible for opening, monitoring the banking
operations?
The Agency of finance/treasury controls cash
balances daily relative to borrowings?

YES

NO

DIAGNOSTIC
AREA
F. Legal and
Policy Framework

G. Performance
Monitoring

H. Evaluation
I. Accounting and
Reporting

J. Internal Audits

K. External Audit?

L. Organization
and Capacity for
Reform?

QUESTION
There are procedures to report and correct
overspending?
Are there laws, regulations or policies which:
Limit and define the authorities at each level of
the administration for transferring funds within the
approved budget?
Prevent transfers between personnel costs and
other subheads of the budget?
Specify how budget funds that are unspent at the
end of the fiscal year should be treated?
Establish sanctions for overspending?
Bind all persons responsible for spending money
to implement management control practices?
Does the government foster an environment that
supports and demands improved performance by
organizations and individuals?
Is performance information on easily measured
activities collected and used by spending units?
By the Agency of finance?
Are managers who are responsible for
government programs and projects given clear
short / long term operational goals and targets?
Is there an evaluation capacity sufficient to
respond to the demands of the public
sector/accountability?
Is there a unified accounting and budgeting
classification system regulated by the Agency of
finance/treasury?
Are the final accounts produced, audited and
tabled in parliament shortly after the end of the
fiscal year?
Does the system provide for recording
commitments (obligations) as well as cash
transactions?
Are internal audit units established in line
agencies or departments?
Does the mandate for these units include:
Financial audit?
System audit?
Procurement audit process?
Review of management internal control
arrangements?
Is there an external auditor established by law
with independence from government?
Does the external auditor have authority to
audit/clear all public and statutory funds and
resources?
Is there a coherent written strategy for bringing
public financial management systems into line
with general accepted standards?
Does this strategy have the support of the Agency
of finance?
Are there training programs to complement any
reform process?

YES

NO

Source:

Interview Questionnaire
Interview Questionnaire for the Assessment of Operational Effectiveness of
Public Financial Management System of LGU Koronadal
For additional information, see Managing Public Expenditure:
Countries edited by Richard Allen and Daniel Tommasi.

A Reference Book for Transition

1. Describe the Best Practices and Pitfalls of LGU Koronadal in Implementing its
Public Financial Management Systems.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. Issues & Concerns Problems Encountered
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Suggestions and Recommendation
________________________________________________________________
________________________________________________________________
________________________________________________________________

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
In brief, the primary criteria for judging the operational effectiveness of public
financial management systems are the extent to which:

It includes a priority controls;

Exiting laws and secondary legislation enable the recovery of amounts lost; And,

Structures are in place to fight fraud and/or corruption.

Name and Signature of Researcher

Name and Signature of Respondent

Date Interviewed