DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES STATE SECRETARIAT FOR FINANCE AND BUDGETS GENERAL SECRETARIAT FOR FINANCE MINISTRY OF ECONOMY AND FINANCE 1 Alejandro Amelivia Alejandro Amelivia Head of e-government area Head of e-government area New perspectives on financial data reporting across different levels of government Ministry of Economy and Finance. Spain. Ministry of Economy and Finance. Spain.
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DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
11
Alejandro AmeliviaAlejandro AmeliviaHead of e-government areaHead of e-government area
New perspectives on financial data reporting across different levels of government
Ministry of Economy and Finance. Spain.Ministry of Economy and Finance. Spain.
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
22
THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH LOCAL AGENCIES (DGFCLA)WITH LOCAL AGENCIES (DGFCLA)
THE DGFCLA is responsible for the financial relationships between central and local goverments.
Functions:
Applying and managing the local financing system
Technical assistance and management of inquiries regarding budgetary and financial system of local agencies
Preparing and publishing statistics on financial and budget activity of Local Agencies
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
33
FINANCIAL LOCAL INFORMATIONFINANCIAL LOCAL INFORMATION
The ministry of economy and finance (meh) has competences for requesting local governments to report financial information
The local budget settlement data are used in the decision making process about local financing and in budgetary statistics design
Local Governments have to report a copy of their annual budget settlement (year t) to the central Administration before march 31 (year t+1).
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
44
LOCAL BUDGET SETTLEMENT DATA REPORTSLOCAL BUDGET SETTLEMENT DATA REPORTS
Potential units reporting their data:
8.110 local governments
1.615 organisms dependent on the administrative structure of local governments
51 provincial governments
160 organisms dependent on the administrative structure of the provincial governments
>9000 other local entities and its dependent units
Total: 18314 supervised entities
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
55
MUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATIONMUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATION
> 1.000.000 inhabitants 2 0,02 4.678.380 10,83
De 500.001 a 1.000.000 inhabitants. 4 0,05 2.676.465 6,19
De 100.001 a 500.000 inhabitants. 52 0,64 10.130.473 23,45
De 50.001 a 100.000 inhabitants. 72 0,89 4.853.517 11,24
De 20.001 a 50.000 inhabitants. 207 2,55 6.131.649 14,19
De 5.001 a 20.000 inhabitants. 877 10,82 8.525.702 19,74
<= 5.000 inhabitants. 6.893 85,01 6.058.828 14,03
Total 8.107 99,98 43.055.014 99,67
Cities with Special Autonomy Status 2 0,02 142.670 0,33
Total 8.109 100 43.197.684 100
%Population Strata Nº of Municipalities
% Population
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
The virtual office was intended to be an open communication channel between MEH and local entities
From the virtual office, authorized local users can easily access online applications in order to immediately submit their data, reducing time to gather and publish the information
The communication is “full duplex”
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
99
VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA CAPTURECAPTURE WEBWEB APPLICATIONAPPLICATION
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1010
PROCEDURE FOR DATA CAPTUREPROCEDURE FOR DATA CAPTURE
Current possibilities when submitting information:
Data Entry (typing) in web forms
Data import from Excel spreadsheets
Submission of XBRL instances
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1111
A LEGAL DISPOSITION TO MODERNIZE DATA CAPTUREA LEGAL DISPOSITION TO MODERNIZE DATA CAPTURE
Establishes general conditions and procedure for submitting Local Governments budget settlemens
Order EHA/468/2007, February 22Order EHA/468/2007, February 22
Data signing exempts the local financial manager from sending a printed, hand-signed copy of the budget
First legal text in Spain to mention XBRL. This law regulates data transmission in three possible ways: Typing, Spreadsheet importing and XBRL transmitting.
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1212
LOCAL FINANCIAL DATA. FORMAT CONFLICTSLOCAL FINANCIAL DATA. FORMAT CONFLICTS
Local agencies are free to use any application or database to manage and store their budgetary data
A standard interchange format was required. It should
• be easy to use by all the local agencies
• be able to store or display any kind of budgetary data
• be flexible enough to fit any existing storing system
So it had to be !
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1313
TRADITIONAL PROCEDURE: MORE WEAK POINTSTRADITIONAL PROCEDURE: MORE WEAK POINTS
The information is demanded by other institutions, such as external financial control courts (regional and national), regional governments, banks… And it was difficult to share.
This fact means that local corporations have to send the same information using different formats in order to accomplish all legal requirements
And consequently, increasing their management costs
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1414
THESE DISADVANTAGES CAN BE ELIMINATEDTHESE DISADVANTAGES CAN BE ELIMINATED
The DGFCLA has considered XBRL as the best solution for an efficient financial data interchange, where so many organizations are involved
When using XBRL all the actors take some advantage
• Public administrations
• Audit and external control institutions
• Universities
• Banks
•Analysts
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1515
MODEL BASED ON XBRL. EFFICIENCY GAINSMODEL BASED ON XBRL. EFFICIENCY GAINS
The use of XBRL in local budget reporting provides:
• Better information transparency
• Less time to publish data
• More quality on information
• Costs reductions
• Better G2G relationships among all the actors
• Better G2A relationships
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
– Ordinary model Budget Settlement Schema: : lenloc-ord• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-ord/2007-01-31
– Simplify model Budget Settlement Schema: : lenloc-sim• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-sim/2007-01-31
– Common Elements in Simplify and Ordinary Budget Settlement Schema: : lenloc-com• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-com/2007-01-31