4.45 5.15pm Icgfm Survey Presentation (Afas And Clyburn) English

© Grant Thornton LLP. All rights reserved.© Grant Thornton LLP. All rights reserved.

Progress in Public Financial Management Reform

Leila Aridi Afas and Steven A. Clyburn Grant Thornton LLP

International Consortium of Governmental Financial Management Winter Conference, Washington, DCDecember 3, 2009

© Grant Thornton LLP. All rights reserved.

Agenda

• About the survey• Why public financial

management (PFM) reform?

• Obstacles to PFM• Overcoming obstacles• External support• Global economic crisis

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About the ICGFM survey

• Purpose: Learn progress of public financial management (PFM) reform initiatives worldwide & gain ideas for improving financial management

• Conducted 65 inperson & online interviews

• Anonymous; shows participants’ views• Sponsored by ICGFM, conducted by

Grant Thornton

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On the path to reform: Question to ICGFM Winter Conference participants

What influenced your country's decision to reform public financial management?

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Top reasons for implementing reforms: ICGFM Survey respondents

Reason %

Increase transparency of government & involvement/participation of citizens 41

Improve effectiveness of budget expenditures 29

Improve accountability to government & business stakeholders 20

Meet donor community requirements 10

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Obstacles along the road: Question to ICGFM Winter Conference participants

What are the greatest obstacles you have faced in implementing PFM reforms in your government organization?

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Greatest obstacles to reform: ICGFM Survey respondents

1. People: lack of trained professionals with the right skills; nature of financial positions; availability of training & professional development

2. Legal frameworks & policy

3. Lack of external support

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What can be done to overcome the obstacles you faced in implementing PFM reforms?

• Enact legislation to change the existing system

• Improve local revenue base & resource collection to reduce reliance on donors

• Create a more competitive environment

• Introduce performance management

• Emphasize accountability over compliance

• Invest in risk management• Manage government like

businesses in a free market economy

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External support required for success: Question to ICGFM Winter Conference participants

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What are the most important resources that your government needs to accomplish its goals for PFM reform?

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Top resources required for reform: ICGFM Survey respondents

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Global financial crisis: Question to ICGFM Winter Conference participants

What have been the affects of the global financial crisis on your country's efforts to introduce PFM reforms?

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Global financial crisis: ICGFM Survey respondents

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Positive Negative

• Donors are more interested in PFM reforms

• Supports argument for stimulus funding v. relief

• “Making us better managers” – increased scrutiny & demand for accountability

• Reduced funding for PFM reforms

• Governments have competing priorities for funding

• Redistribution of PFM funds for areas in need, i.e. poverty reduction, health care


Preventing the next financial crisis: Solutions suggested by survey participants

• Improve monitoring & forecasting

• Be more proactive in budgeting, program management & planning

• Invest in risk management• Develop medium- to long-

term strategies for avoiding crises; strategic planning

• Increase transparency; open budget preparation

• Thoroughly analyze the cause of this crisis & apply lessons learned; understand the pitfalls & avoid them.

• Learn from others; get involved in international conferences & organizations that work to prevent the problem

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Questions?

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Contact

Leila Aridi AfasGrant Thornton LLPGlobal Public Sector333 John Carlyle Street, Suite 500Alexandria, VA 22314

P 703.837.4442M 571.527.9665E [email protected]

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4.45 5.15pm Icgfm Survey Presentation (Afas And Clyburn) English

Economy & Finance

Transcript of 4.45 5.15pm Icgfm Survey Presentation (Afas And Clyburn) English