Global Financial Management Leaders: Responses

to an Economically Challenging World

Jason Levergood
Grant Thornton LLP

International Consortium on Governmental Financial Management

Annual Conference, Miami, FL
May 17, 2011 – Key Biscayne Marriot Hotel

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 Agenda

• About the 2011 survey

• Impact of the crisis

• Investment in infrastructure
• Increasing transparency

• 2012 ICGFM survey

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 About the ICGFM survey

• Sponsored by ICGFM, conducted by

Grant Thornton
• Survey methodology
• Anonymity
• Purpose: Examine impact and
responses to economic upheaval and
gain ideas for improving financial
management

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 Impact of the global financial crisis

• Impact
• Stimulus programs

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 Impact of the global financial crisis

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 Impact of the global financial crisis – Stimulus
programs

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 Impact of the global financial crisis – Stimulus
programs

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 Impact of the global financial crisis – Stimulus
programs

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 Investment in infrastructure

• Attracting outside investment

• Public private partnerships

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 Investment in infrastructure – Attracting outside
investment

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 Investment in infrastructure – Attracting outside
investment

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 Investment in infrastructure – Public private
partnerships

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 Investment in infrastructure – Public private
partnerships

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 Investment in infrastructure – Public private
partnerships

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 Increasing transparency

• XBRL and financial

management

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 Increasing transparency

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 Increasing transparency

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 Increasing transparency

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 Increasing transparency – XBRL and financial
management

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 Increasing transparency – XBRL and financial
management

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 Conclusions

• All countries have been affected by the global financial crisis

– Economic growth, currency values and export revenue
• More than 60% of our respondents adopted stimulus programs
– Over half believed stimulus programs to be positive
• Benchmarks for phasing out economic recovery programs included improvement
in economic growth, general employment and limit to debt capacity
• Increase in spending on infrastructure was given as the number one area of focus
for increased investment
– Education / Transportation / Healthcare
• Combating the impact of the crisis resulted in an adoption of extraordinary polices
• More than 75% of all respondents spoke of a new commitment to increased
transparency
– Adoption of new standards included IAS and IPSAS

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 2012 Global Financial Management Leaders Survey

• Tools of PFM Accountability

– Importance and barriers
– Standards
– Social media
– Accountability in action
• media; parliament; public auditors
• Survey conducted all week
– Thank you in advance for participation!

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 Thank you

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 Contact

Jason Levergood
Grant Thornton LLP
Global Public Sector
333 John Carlyle Street, Suite 500
Alexandria, VA 22314

P 703.637.3006
E Jason.Levergood@gt.com

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 Has the global financial crisis had an impact
on your country?

1. Yes
95%
2. No
3. Do not know/does
not apply

5%
0%

1 2 3

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 Has your country initiated a stimulus program?

1. Yes 69%

2. No
3. Do not know/does
not apply
26%

5%

1 2 3

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 Rate the success of your country's stimulus
program.

1. Very successful 50%

2. Successful
3. No effect 29%

4. Not successful 21%

0%

1 2 3 4

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 What are the key indicators that will activate
the need to unwind or end your country's
stimulus program?
1. GDP Growth
2. Lower 33%
38%

unemployment
3. Improved debt
capacity
4. Inflation 8% 8%
13%

5. Interest rates
0%

6. Political climate 1 2 3 4 5 6

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 Which areas of Infrastructure present the most
critical need for investment?

1. Education
2. Transportation 49%

3. Healthcare
4. Energy/Renewables
5. Information Technology 31%

6. Housing
7. Water
8. Waste treatment
11%

9. Defense
10. Prisons 3% 3% 3%

0% 0% 0% 0%

1 2 3 4 5 6 7 8 9 10

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 What are your areas of focus to increase
outside investment?

1. Improve necessary
infrastructure 34%

2. Improve legal 24%

system 21% 21%

3. Greater
transparency
4. Tax incentives
0%
5. Currency Reforms 1 2 3 4 5

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 Has your country used public private
partnerships (PPPs) to find sustainable
funding for infrastructure investments?

1. Yes
2. No 73%

3. Do not know/does
not apply
19%
8%

1 2 3

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 Please rate the success of your country's
PPPs.

1. Successful
2. No effect 52%

3. Not very successful

29%

19%

1 2 3

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 Why has your country not used PPPs?

1. Lack of policy and 45%

guidance
2. Lack of PPP unit to
coordinate efforts on 23%

the ground
20%

13%

3. Political circumstances
4. Lack of interest from
investors or operators 1 2 3 4

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 Has your country made or renewed a strong
commitment to improve public financial
management transparency for your citizens?

1. Yes
93%
2. No
3. Do not know/does not
apply

7%
0%

1 2 3

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 Has your country adopted new international
standards to improve public financial
management governance and transparency?

1. Yes
76%
2. No
3. Do not know/does not
apply
22%

2%

1 2 3

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 Which new international standards has your
country adopted?

1. International Auditing 40%

Standards 37%

2. International Public
Sector Accounting
23%

Standards
3. Government Financial
Standards/Compliant
Chart of Accounts 1 2 3

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 Has your country adopted eXtensible
Business Reporting Language (XBRL) to
enhance transparency and public access to
data?
1. Yes
66%

2. No
3. Do not know/does not
apply
22%

12%

1 2 3

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 Are there plans to adopt XBRL in the future?

1. Yes 44%

2. No
3. Do not know/does not 28% 28%

apply

1 2 3

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