Professional Documents
Culture Documents
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for public financial management support reform and modernization to improve governance, transparency and accountability.
1984
1984+
Version 7 section
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1994+
Version 7 section
Budget Controls Appropriations Budget Books
brief discussion
Budget Law
Planning
Forecasting
Policy Analysis
1994+
Budget Centric
Version 7 section
Commitment Accounting
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Modernization & Reform
Complex Performance
Not ERP
1994+
Version 7 section
COMMITMENT CYCLE
budget appropriations transfers commitments obligations receiving expenditures
MULTIPLE CONTROLS
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aggregate
configured
CONTROLS
flexible strict
TOLERANCE LEVELS
yearly PERIOD
Financial Controls
1998
Version 7 section
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Nunavut
1999
Version 7 section
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Kosovo
2000+
Version 7 section
quickest implementation 26 days
brief discussion
Rapid Implementation
2006
Version 7 section
brief discussion
today
Version 7 section
Countries Penetrated brief discussion Time Zones World wide Software Installations Users Civil Servants Handling annual budgets of 21 15 Over 200 Over 60,000 Almost 1.5 Million > $ Trillion
Global Impact
today
Version 7 section
Developed Countries Developing Countries Uganda, Guyana, Antigua, Suriname, Lao PDR
Panama, Jamaica, Pakistan
Post Conflict
brief discussion
National
Departmental
Afghanistan, TimorKosovo, Mongolia, Leste, Iraq Sierra Leone, Kyrgyzstan Liberia, South Sudan
Sub-National Project
Namibia
Palestine
Global Impact
today
Version 7 section
brief discussion
Ottawa
Ulaanbaatar
Bishkek Kabul Ramallah
Pristina
Washington Lisbon
Kolkata Bangalore
Vientiane Dili
services & support sales, business development & marketing product management & development corporate services
today
Company Summary
High Success Rate
brief discussion
Global PFM Provider
GRP Leader
ISO9001/2008
19
Version 7 section About $37B of foreign aid brief discussion annually is phantom aid
Version 7 section Tax evasion through untaxed shadow economy brief discussion = 17% of world economy, well over $2.5T
Version 7 section
brief discussion
Version 7 section
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ranges from 1.4% of GDP in UAE to almost half in Belgium, Sweden and Denmark
Version 7 section
brief discussionGood
Technical Reforms Effective
Practices
5. measured
4. and can be seen
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Version 7 section
brief discussion
Version 7 section Developing Countries lose an estimated $20B to brief discussion $40B annually because of corruption
Expenditure Management
Receipts Management
Treasury Management
Performance Management
EITI
revenue
IATI
aid, debt & PPP e- recruit & disclosure
GFS
gov results
budget transparency
forecasts programs reporting & analytics dashboards alerts - output/outcomes KPIs economics historical data - benchmarks policy planning scenarios programs assets
accruals
audit
Version 7 section
Chart of Accounts
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Segregation of Duties
ICT Platform 1. Secure Infrastructure 2.User Group Controls Data integrity Encryption IT security User management Government Performance 3. Budget Preparation Core Public Financials 4. Commitment Accounting
Dashboards
Public Expenditure Management 5. Procurement 6. EProcurement 7. Payment Management EProcurement front office Secure payments
Audit trail
Integration
Alerts
Procedure Workflow
briefTechnique discussion
DB Abstraction Sniffing Integration Transaction Audits Security Policy
Security Audit Data Integrity Obfuscation Encryption Biometrics
Database
Network
Audit Trail
User Identify
Interfaces
VPN
Reports Intrusion
Version 7 section
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Version 7 section
GPM BCM PFM GTM GRM PEM CSM
Chart of Accounts
Budgets & Commitments Segregation of duties Secure Payment Integration
brief discussion
Reconciliation
Workflow & Procedures
Approvals
Accrual Asset Management
Version 7 section
Governance Enablers Matrix
Decentralization Risk Management Compliance Standards
Characteristics
Capacity
Independence
Transparency
Participation
Political Will
Informal Mechanisms
Access to Information
Accounting Procedures
Legitimacy
Efficiency
Outreach
Institutions
Executive
Legislature Judiciary
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Enforcement
Other Govt Oversight Public Service Civil Society & Citizens
Businesses
Election Commission Political Parties
Donors
Version 7 section
Chart of Accounts
Capacity
Political Will
brief discussion
Segregation of Duties
ICT Platform 1. Secure Infrastructure 2.User Group Controls Data integrity Encryption IT security User management Government Performance 3. Budget Preparation Core Public Financials 4. Commitment Accounting
Dashboards
Public Expenditure Management 5. Procurement 6. EProcurement 7. Payment Management EProcurement front office Transparency Civil Society Secure payments
Audit trail
Integration
Alerts
Standards
Compliance
Procedure Workflow
Budget Controls
Revenue Forecasting
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Budget Transparency E-Procurement
Budget Classifications Revenue Transparency E-Recruitment, Wage & Expense Disclosure Talent Management Results Portal Budget Planning Processes & Performance Management Audit trails & Computer Aided Audit Tools
C(ii) Predictability and Control in Budget Execution C(iii) Accounting, Recording and Reporting
Non-Salary Controls
Payroll Controls
Timeliness and Completeness of Statements and Reports, Support for International Public Sector Standards
improves
PFM
Transparency
Effective
results
Governance Rating
perception
behaviour
Version 7 section
Governance Toolset Governance Enablers Governance Signs
Data Integrity
Governance Indicators
Governance Outcomes
chart of accounts | segregation of duties |integration | workflow & procedures | alerts & dashboards
1. Secure Infrastructure
ICT Platform
Encryption
IT Security
brief discussion
2.User Group Controls
User management Planning Government Performance Mgmt Core Public Financials
5. Procurement
PEFA C2: Predictability & Control in Budget Execution PEFA B: Transparency TI Corruption Perception
Transparency
6. E-Procurement
7. Payment
8. Audit
Audit trail
Independence Enforcement
Version 7 section
brief discussionGood
Technical Reforms Effective
Practices
Evaluation Method
Front-Office Technology
Public Expenditure and Financial Accountability (PEFA) Commonwealth Public Financial Management Self-Assessment Toolkit (CPFM-SAT)
The Chartered Institute of Public Finance & Accountancy (CIPFA) Whole Systems Approach
Revenue Watch Institute Index
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No technology guidance although PEFA assessments attribute some achievements to the use of technology A3: Use of IFMIS B2: Use of Debt Management software No technology guidance for publishing O7: Financial management information information systems
Budget preparation and reporting transparency Open government E-Democracy E-Government E-Government Meta collection of 3rd party indicators Governance and anticorruption
Use of country systems for PFM and procurement does not specify use of technology Internet publishing of budget documents gains higher rating for many categories Provides open government technology insight Use of e-mail systems Use of web technology Horizontal and vertical integration within government
No technology guidance
101011001110010101001010101
Revenue
Budget formulation Budget execution
Treasury
Human Resources
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Product Development Steering Committees SWAT Teams
Country Research
Governance Valuation
Implementation
Benchmark
Priority Gaps
Sequencing
Benchmark
Priority Gaps
Sequencing
capacity
Version 7 section
Risk of Project Failure Higher in Government
ICT Projects
Many ICT projects fail to deliver on expectations
Includes all ICT Project Risks brief discussion High customization required to achieve benefits Often requires business process re-engineering Highly complex project covers multiple organizational silos Projects often delivered late
High maintenance costs to keep lights on Complex ICT projects have higher failure rates than modest projects
Covers more lines of business than private sector enterprises Need to rationalize needs of politicians, public servants and civil society
High maintenance costs, especially upgrades leads to high Total Cost of Ownership (TCO)
58
governance
costs
customization
APPLICATION CONFIGURATION REUSABLE CODE
proprietary
enterprise
DEVELOPMENT ENVIRONMENT
MIDDLEWARE
Version 7 section
90% 80% 70%
Calculated Average ERP Success, Unsuccessful but not Failure and Failure
brief discussion
24% 42% 60% 50% 40%
Low, Average and High ratings from ERP studies indicating Failure, unsuccessful (including Failure) and Success
Failure
Unsuccessful
Success
Version 7 section
2
2
14
12
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4 7
0 1
10
8 11
7 0 6 6 4 2 0
Failure
Problems
Successful
3
1
FreeBalance
Failure = Abandoned or > 10 Years to Implement Problems = Reported issues, incomplete implementations, late Success = No exceptionally reported problems
Version 7 section
ERP 5 Year TCO compared to FreeBalance
500.00% 450.00%
400.00% 350.00%
300.00% 250.00% 200.00%
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ERP Price FreeBalance
150.00%
100.00% 50.00% 0.00%
Version 7 section
50% 40% 2. Adapt Processes
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7. Other
30%
20% 10% 0% 6. Decisions in Apps 3. New Apps
1. Changing, upgrading or optimizing existing applications 2. Changing or adapting processes as business requirements change
5. Process Decisions
4. Process Automate
7. Other
64
Conflict between customized vs. generic solutions brief discussion More vertical capabilities creates larger footprint Government focus reduces:
Customization Technical footprint Time to implementation
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(CFPR) Parameters
(CFWF) Workflow
Financials
Treasury Revenue Debt
Cash-based
Cash Management Modified Cash Budgetary Controls
MoF
Line Ministries Regions & States Treasuries Devolution Commissions
Budgeting Purchasing
Payroll Assets Inventory
HR
Accrual
69
Version 7 section
Government Entities
Government Applications Government Functions
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Eclipse
Spring
Hibernate
Trinidad
Framework
Java EE Infrastructure
Version 7 section
brief discussion First Strategic Generation Inflection ERP Era to Point 20072007 2010
Version 7 section
Product Development
Product developers have no expertise in government financials
Product Management Product often designed with different customers in mind Consulting firms generate revenue from customization.
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Customer Support
Government Resource Planning and the Customer Centric Approach Version 7 section
Product Management Product Development Developers visit customers and are part of SWAT teams.
All problems & feature requests are tracked management dashboard Local in-country support pass on needs.
Customer Support
Customers interact with Vendor staff and other customers on collaborative web application
Version 7 section
Selection of FreeBalance Customers, National Level GRP Implementations brief discussion
from low to very high Human Development Index
Liberia .329 Timor-Leste .495 Mongolia .653
Antigua .764
Canada .908
low
medium
| high |
.286
Version 7 section
1. Engage the PFM Community
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Customer Experience Market Research & Events Participation
Deep research in public financial management Engagement with larger PFM community at events
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multitier design separates presentation, business logic and data layers
Government Entities
Government Applications
Government Functions
Eclipse
Spring
Hibernate
Trinidad
Framework
Java EE Infrastructure
Version 7 section
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Economy Afghanistan
1993-2002
Intermediate
Budget Planning
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Budget Books
Treasury Management
Transparency Portal
Performance Management
Modernization
Accrual Accounting
Decentralization
Fixed Assets
Human Resources
Procurement
Version 7 section
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C(i) Policy-Based Budgeting
FB Public
Public PEFA
C(ii) Predictability and Control in Budget Execution
Public PEFA
C(iv) External Scrutiny and Audit
2.35
0.569
Medium
5. Success Requires Vendor Implementation & LongTerm Support Version 7Commitment section
Product Management Product Development
Consultant
Customer Support
Canadian Version 7 section Company High GRP More: Success Leader Rate www.freebalance.com/blog
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ISO9001/2008