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22 November 2011 Professionalising Public Financial Management 1 Government of South Sudan Capacity Building Trust Fund Readiness Assessment for Professionalisation of Public Financial Management End of Assignment Presentation Tony Redmond Assistant International Director, CIPFA 22 November 2011

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Page 1: 22 November 2011Professionalising Public Financial Management1 Government of South Sudan Capacity Building Trust Fund Readiness Assessment for Professionalisation

Professionalising Public Financial Management 122 November 2011

Government of South SudanCapacity Building Trust Fund

Readiness Assessment for Professionalisation of Public

Financial Management

End of Assignment Presentation

Tony RedmondAssistant International Director, CIPFA

22 November 2011

Page 2: 22 November 2011Professionalising Public Financial Management1 Government of South Sudan Capacity Building Trust Fund Readiness Assessment for Professionalisation

22 November 2011 Professionalising Public Financial Management 2

Content of Presentation

Methodology and conduct of the Readiness Assessment

Outline structure of accountancy profession Analysis of issues/challenges encountered Identification of offsetting strengths Recommendations – Public Financial

Management Recommendations – Government

Accountancy Training Centre (GATC)

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Terms of Reference The study was required to cover the following areas:-

the current state of financial management reform in South Sudan:- systems and procedures, progress in reform, extent of

existing professionalisation, commitment to the idea; the PFM human resource capacity development

infrastructure of South Sudan:- existing qualification provision (extent, accessibility,

content), teaching institutions, the role and activities of the local accountancy

profession in South Sudan:- size and scope, development state, extent and

effectiveness of regulation, relationship with government

Examination of relationships between donor partners, government and profession

Business planning for GATC

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The Accountancy ProfessionArchitecture - Institutions

• International Federation of Accountants• Membership body for national professional bodies• Member bodies must meet certain rules about education

standards, admission requirements, ethical and behavioural standards and life-long learning (pre- and post-qualifying development programmes)

• National Accountancy Institutes• Assess suitability of aspirant members for admission• Develop and enforce ethical and behavioural codes of

conduct• Provide technical and other forms of support to members• Adopt and enforce national and international accounting

standards• Must act always in the public interest not just the sectoral

interests of their members

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The Accountancy ProfessionArchitecture - Standards

• International Accounting Standards Board• Develops and disseminates standards for the practice of

accountancy and audit worldwide – International Financial Reporting Standards (IFRS) and International Auditing Standards (IAS)

• IFRS and IAS standards are mandatory on all bodies in membership of IFAC (but can be adapted for local use)

• Public Sector Committee of IASB• Development of International Public Sector Accounting Standards

(IPSAS)• International Organisation of Supreme Audit Institutions

(INTOSAI)• External audit standards for the public sector – ISSAIs

• National Accounting Standards Boards• Development of local standards and adaptation of international

standards

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Professionalism Professionals:- possess the wide range of underpinning knowledge and

understanding to carry out their own work and also to comprehend the wider issues relating to how systems and procedures interact;

display work-related competences which enable them to deliver the outputs required of them efficiently and effectively and with minimum levels of supervision;

comply with independently established and enforced standards in the execution of their work and the exercise of their technical and managerial responsibilities;

have demonstrated their mastery of the necessary knowledge and competences through definitive, summative assessments conducted by an independent assessment agency;

are committed to a programme of lifelong learning to adapt and improve their knowledge, understanding and competence in line with developments in their field;

subscribe to an independent code of conduct which governs their attitudes and behaviour and breaches of which can lead to externally imposed sanctions on their continued status and earning capacity.

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Professionalisation is........

NOT training

a systemic transformation of the way work is done

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Professionalisation Professionalisation requires:- the contextual conditions conducive to the establishment

and sustainable development of the environment in which professionals can flourish;

the existence of individuals qualified to become members of the profession in that country

non‑financial managers and other role players having the skills, support and other resources to play their part in financial management, including taking responsibility for the resources they manage and formulating and controlling their budgets;

the presence, on a sustainable basis, of a recognised profession in the country, normally represented by a professional association, body or institute;

training capacity locally to provide the, products and services required by the financial management community in the country or region

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Financial Management Reform in Emerging Countries

Currently three main (inter-connected) approaches:- reform of technical systems, new equipment and technology, ad hoc (short course) training to support reform

Increasing concern amongst development partners at sustainability of this approach

High quality financial management is associated with the development of professionally qualified personnel backed by externally enforceable accountancy and audit standards

Long-term gains will be consolidated only through a step-change in the levels of competence of accountancy and audit professionals

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The Recognition StudyWhat Happened?

Arrived Monday 7 November (departing pm Tuesday 22 November) Meetings with

Government finance professionals in the Audit Chamber the Ministries of Finance of Central Government and East

Equatoria State The Local Government Board

Human Resource Development - Ministry of Labour Donor partners – World Bank, JDT, DFID, USAID, CIDA, AfDB Donor Coordination Unit of MoFEP GATC and the University of Juba Project managements in PFM field – MoFEP, CBTF Coordinator of embryo accountants’ association

Study of various documents from MoFEP, Ministry of Labour, donor partners, GATC consultants

Final Report and recommendations due by 31 December 2011

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So where do we go from here.......?

We can’t go on like this............

But we mustn’t change anything......

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We can’t go on like this....The Challenges• Low or very low capacity throughout the public financial

management system• Lack of effective ‘soft’ support systems – HRD policies and

procedures, job descriptions, financial regulations and codes• Absence of strategic vision of how to tackle these• Efforts to address needs heavily concentrated on Juba• Uncoordinated approaches between donor partners and individual

government institutions – supply led initiatives• Minimal skills transfer to date – capacity replacement rather than

capacity development• Workbased training not related to professional development• GATC in its current manifestation is unsustainable• Short-term consultancies in GATC have failed to achieve any real

improvement in standards or extent of professional development• No local professional body in either private or public sector hence

no local accounting or ethical/behavioural standards• No access to international standard qualifications in the profession• Widespread concerns about work ethic in the civil service

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Some Rays of Sunshine! Things can only get better! Widespread recognition in government that standards must be

raised Government plans for budget support from donor community –

incentive to improve Data on accountants working in central ministries now being

collected (but needed for budget, internal audit and procurement specialists as well)

Audit Chamber strategic plan completed and awaiting approval

Ministry of Labour strategic plan on HRD in the civil service nearing completion

PFM donor group now established and operational under the leadership of the World Bank

First stirrings of activity in establishment a local professional association

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But we must change things.......Some Big Answers……..

• Long Term strategy (up to 15 years in 5-year tranches) based on improved information and communications

INTEGRATION INTEGRATION INTEGRATION between

technical reform projects and training strategy donor-funded initiatives and identified/prioritised training needs

(and with each other) workplace training and professional development PFM HRD strategy and civil service HRD strategy professional development and skills transfer to local personnel professional and technical training and basic skills development training strategy and recapacitation of GATC training strategy and ‘software’ developments in PFM institutions public and private sector professionalisation

Commitment to see the strategy through – no more ‘two-year’ solutions!

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.......Leading to the Big Idea Appoint a PFM Capacity Building ‘Czar’ who would:-

be the custodian of the strategic plan coordinate with government and donor partners on

implementation of the plan packaging activities into specific projects specifying and tendering for implementation of

packages oversee the recapacitation of GATC ensure extensive skills transfer at all levels of the PFM

system provide assistance to the emerging accountants’

association be recruited initially with the support of an international

professional body with substantial PFM experience work with PFM institutions on the development of

‘software’ start work no later than mid 2012

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Recommendations Two sets General PFM

Short-term (January to June 2012) (Foundation Stage)

Medium Term (July 2012 to June 2015) (Intermediate Stage)

Long term (from July 2015) (Implementation Stage)

GATC Short term Medium term Long term

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CIPFA International Certificate and Diploma in Public Financial Management

Certificate Stage Financial Accounting (including introduction to audit) Management Accounting (including budgeting) ‘Local’ Module (Public Financial Management in South

Sudan)

Diploma Stage Financial Management Financial Reporting in the Public Sector Auditing and Assurance Managing Organisations

Professional Stage Conversion to full CIPFA professional qualification

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Short Term General PFM

Immediate, comprehensive training needs assessments (TNAs) in MoFEP and line ministries of central government (accounting, budgeting, internal audit and procurement) and the Audit Chamber

Two-month scoping study to develop, cost in detail and gain agreement for the strategic plan

Immediate start on workbased training in the Audit Chamber (using earmarked funding)

GATC Develop strategic relationship with appropriate national and international bodies Conduct feasibility and developmental study for the delivery of CIPFA’s

International Certificate and Diploma (IBD) at the Centre (later in 2012) including training of trainers

Identify and earmark up to 30 potential trainees for first iteration of ICD who will form faculty of GATC once qualifications completed

Establishment of provision to support ‘stranded’ ACCA students Move responsibility for GATC from planning to accounting directorate of MoFEP Upgrade and make new appointment to posts of Head of GATC and deputy Install a generator (PLEASE, SOMEONE!) and make plan for rehabilitation Review overall business plan, make detailed implementation plan and GAIN

GOVERNMENT AGREEMENT TO MAKE THE CHANGES NEEDED

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Medium Term - 1 General PFM

Appoint and deploy PFM ‘Czar’ Develop job descriptions, job specifications, management structures

and other regulatory requirements of MoFEP, Audit Chamber and GATC Commission and implement workbased training in MoFEP based on

workplace competences identified in TNAs Develop management capacity in PFM institutions in cooperation with

Ministry of Labour HRD strategies and plans Conduct ‘Recognition Study’ covering all PFM institutions – deployment

and retention of qualified staff Develop internal training and professional development capacity in

MoFEP and Audit Chamber to complement professional development courses in GATC

Develop and deliver training in finance for non-financial managers throughout central government in conjunction with Ministry of Labour

Conduct comprehensive in-depth TNAs for States and local authorities and commence training delivery

Provide support (and funding) for development of local professional body following IFAC guidelines (including strategic and business plans) and seek sponsor organisation to assist with IFAC accession

Critically appraise progress and prepare/modify plans for long-term implementation

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Medium Term - 2 GATC

Operate one full iteration of CIPFA ICD course for pilot group from July to December 2012

Send best three (?) performers to the UK on secondment to complete full CIPFA professional qualification

Plan for implementation of full chartered accountancy qualification (including fast track scheme for senior staff) locally in conjunction with supporting professional body(s)

Work with Ministry of Higher Education etc to establish recognition of qualifications

Support University of Juba to update and further develop degree and diploma courses (especially public sector options)

Provide study tour facilities/secondments for GATC management to similar government training establishments abroad

Using successful graduates implement longer-term CIPFA ICD training programmes from early 2013

Integrate professional training plans with basic skills development provision

Implement business plan – recruitment and deployment of managers, teaching faculty and support staff and rehabilitation of facilities

Develop necessary competences to support workplace training in PFM institutions

Capacitate Centre to provide training in States as well as Juba

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Long Term - 1 General PFM

First long-term plan to be conducted on five-year basis

Roll out lessons learned and procedures developed in central government to the States and local authorities

Roll out training for non-financial managers to States and local government

Continue to implement workbased training programmes in coordination with overall PFM and capacity building strategies

Implement strategic and business plans for local accountancy association recruiting and training staff and developing membership, technical, educational and disciplinary procedures

Initiate and implement process of application for membership of IFAC

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Long Term - 2 GATC Continue to provide basic, foundation and

intermediate level qualifications and tailored short-course training

Develop and implement qualifications courses relevant to the private sector

Implement professional stages of existing qualifications (including the fast track scheme)

Work with new accountants’ association to develop education and training policies and functions

Continue to recruit and develop suitable faculty staff to cope with expanded responsibilities

Establish teaching and assessment operations at State level

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GATC Business Plan Overall aim – to create a centre of excellence for the provision of

accountancy, audit and procurement education and training for government and, ultimately the private, sector in South Sudan

The way forward Change the attitude of government and government

employees to working and studying at the Centre Improve government supervision and expand government

funding Forge strategic partnerships with international and domestic

players Strengthen management and operational capacity Improve physical infrastructure Transfer skills to local personnel Develop effective quality assurance procedures Change the business model – funding through fees and

charges for services provided rather than through government budgets

Develop national coverage through delivery of teaching/ training in States

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Please get in touch

www.cipfa.org.uk

[email protected]

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A Final Thought...........

We can’t go on like this............

But we WILL change things......

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Page 26: 22 November 2011Professionalising Public Financial Management1 Government of South Sudan Capacity Building Trust Fund Readiness Assessment for Professionalisation

Thank you

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