cipfa.org.uk Professionalising the public sector Global steps to better PFM Alan Edwards, International Director, CIPFA
cipfa.org.uk
Professionalising the public sector Global steps to better PFM
Alan Edwards, International Director, CIPFA
cipfa.org.uk
CIPFA is campaigning for stronger government accounting and audit …
Partnerships with ..
International agencies
National governments
Multi lateral development banks
Charitable foundations
Professional accountancy institutes
Accountancy and other firms
Academic institutions
Representative international bodies
‘Making a step-change in government accounting and auditing is completely within leaders’ control. The on-going
crisis screams out for urgent concerted global action.’
Chris Bilsland,
CIPFA President
cipfa.org.uk
We are seeing signs that calls for PFM reform are growing…
Draft Declaration on Good Financial Governance in Africa
Core principles
Transparency
Accountability
Institution building
Results orientation
Balancing reforms and capacity
Autonomy in reforms choices
A framework to be adopted by all Finance Ministries across Africa, potentially supported by a better organised profession in Africa.
Eurostat review of accrual accounting and IPSAS across EU
Likely to recommend adoption of accruals accounting by EU and member states
IPSASs represent an indisputable reference framework for EU harmonised public sector accounts ("EPSAS")
Gradual stage approach to implementation of EPSASs
Some issues:
Capacity for implementing accruals
Relationships with the profession
Obtaining multi-partisan support
Education for politicians
cipfa.org.uk
One possible model …
Global PFM qualifications
Global PFM community
Global PFM thought leadership
In short a Global PFM profession
Global PFM donor funding
Global approach to PFM capacity building
Global PFM products and services
cipfa.org.uk
4
Professional training
• Accredited Training Partners
• UNDP
• FreeBalance
• Dual designation
• India SAI
Capacity Development
• World Bank/DFID
• Nigeria
• Lesotho
• Bangladesh
• Balkans
• Sri Lanka
Strengthening PFM around the world …
International Standards
• IPSAS implementation partnership - EY
• Eurostat - FEE
• IFAC Public Sector Governance
• IIA/CIPFA
PFM projects
• FM model - GFOA
• Associates – DFID - TCI
• Partners – PwC - EU
• Partners – WYG – Tajikistan
• Partners – NAO - Trinidad
cipfa.org.uk
The largest PFM reform programme is being undertaken in Bangladesh…
Bangladesh aspires to become a middle income country with appropriate public service institutions and management
SPEMP is a multi year multi agency programme of reform
Aims:
Strengthen and modernize core institutions of budgeting and financial management for stronger, more accountable and transparent public institutions.
Improve the effectiveness of formal institutions of financial transparency and accountability for stronger and more capable oversight functions of the government, ensuring accountability
Build a better informed public: Citizens who are aware of how tax money is being spent and can demand better management of public funds for better delivery of public service
cipfa.org.uk
CIPFA is leading SPEMP-B – Component 3
Project Development Objective “to build the faculty and
management practices of FIMA to deliver appropriate short courses in PFM and to become approved to deliver internationally recognised professional accreditation courses in PFM”
Expected Outcomes Over 300 staff undertaking
CIPFA professional training
Stronger sustainable FIMA
cipfa.org.uk
Sri Lanka is embracing public finance reform and IPSAS…
Sri Lanka has embarked on a major PFM reform programme
CIPFA is assisting ICASL to explore building a public sector stream into their existing qualification framework
This is likely to involve utilising modules from CIPFA’s existing IPFM qualifications
In addition CIPFA is assisting with some initial training on IPSAS and their applicability to Sri Lanka
This will involve tailoring some training materials from CIPFA’s Cert IPSAS plus some training of trainers in Sri Lanka
cipfa.org.uk
Some PAOs have embraced dual designation …
cipfa.org.uk
In Africa we have created partnerships with PAOs … The Accountant General of
the Federation
The Auditor General for the Federation
The Federal Treasury Academy
The World Bank
The Institute of Chartered Accountants of Nigeria
cipfa.org.uk
Affiliate Membership
Full CPFA Membership
Associate Membership
Entry point:students can begin study at any of
the entry points as long as they have the relevant requirements for entry
· Governance, Public Policy and Ethics· Public Finance· Strategy· Corporate Financial Reporting
Advanced Diploma
· Public Sector Financial Reporting· Audit · &· Assurance· Managing Organisation· Managing Finance
Diploma
· Financial Accounting· Management Accounting
Certificate
Entry point with
appropriate exemptions
· Strategic Financial Management· Strategic Leadership
Professional
Entry point with
appropriate exemptions
UNDP are adopting professional training for their finance staff …
cipfa.org.uk
Training is crucial for IPSAS implementation …
CIPFA supports individuals, organisations and PAOs prepare for IPSAS
The Certificate explains each standard in detail
It can be studied online, face to face or via distance learning
Assessment is via a two hour online examination
A cash IPSAS only variant is available
www.cipfa.org/Training-and-Qualifications/Qualifications/Certificate-in-
International-Public-Sector-Accounting-Standards-Cert-IPSAS
cipfa.org.uk
CPD for public finance staff is a universal demand …
cipfa.org.uk
The PFM Academy
ATPs
IPFM courses
Cert IPSAS
Networks & Forums
Publications
Conferences
Other events
Government
Group fees and
subscriptions
Individual fees and
subscriptions
CIPFA
Looking ahead – a new PFM Academy?
cipfa.org.uk
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Professionalisation – what works best … Bottom-up approach – addresses training and development
needs at day-to-day operational level
Locally led and managed programmes
And
Tangible link to development of a professional qualification
Genuine, active partnership of equals between local providers and external supporter(s)
Supportive, long-term assistance from donor
Integration of ‘academic’ with workplace aspects of learning
Proven success in raising qualification levels and capacity within the sector
Society that recognises the value of a professional qualification
HR systems that reward professional development
Sustainability built in from day one
cipfa.org.uk
Outputs from PFM professionals…
prepare budgets and financial statements
design PFM systems
give assurance
provide advice
certify accuracy and integrity
monitor compliance
Quality accounts and unqualified audits
cipfa.org.uk
Outcomes from PFM professionals…
better quality decision making
more effective targeting of resources
stronger accountability
more efficient use of resources
greater comparability Donor/ lender
confidence in country systems
improved transparency
cipfa.org.uk
If we do that we will have Fixed the Foundations …
And stopped any more dominoes falling!
cipfa.org.uk
Professionalising the public sector
Global steps to better PFM
Alan Edwards International Director
CIPFA [email protected] Tel +44 207 543 5690