4.45-5.15pm_icgfm survey presentation_(afas and clyburn) english

8/14/2019 4.45-5.15pm_ICGFM Survey Presentation_(Afas and Clyburn) ENGLISH

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ton LLP. All rights reserved.

Grant Thornton LLP. All rights reserved.

Progress in Public Financial Management Reform

Leila Aridi Afas and Steven A. ClyburnGrant Thornton LLP

International Consortium of Governmental Financial ManagementWinter Conference, Washington, DCDecember 3, 2009


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Agenda

About the survey

Why public financialmanagement (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 WinterConference participants

What influenced yourcountry's decision toreform public financial

management?

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Top reasons for implementing reforms: ICGFMSurvey 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 WinterConference participants

What are the greatestobstacles you have faced inimplementing PFM reformsin your governmentorganization?

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Greatest obstacles to reform: ICGFM Surveyrespondents

1. People: lack of trained

professionals with the rightskills; nature of financialpositions; 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 youfaced in implementing PFM reforms?

Enact legislation to changethe existing system

Improve local revenue base& resource collection toreduce reliance on donors

Create a more competitive

environment

Introduce performancemanagement

Emphasize accountabilityover compliance

Invest in risk management

Manage government like

businesses in a free marketeconomy

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External support required for success: Question toICGFM Winter Conference participants

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What are the mostimportant resources

that your government

needs to accomplish its

goals for PFM reform?

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Top resources required for reform: ICGFM Surveyrespondents

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Global financial crisis: Question to ICGFM WinterConference participants

What have been theaffects of the globalfinancial crisis on yourcountry's efforts tointroduce PFMreforms?

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Global financial crisis: ICGFM Survey respondents

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Positive NegativeDonors are more interested in

PFM reformsSupports argument forstimulus funding v. reliefMaking us better managers increased scrutiny & demand

for accountability

Reduced funding for PFM

reformsGovernments have competingpriorities for fundingRedistribution of PFM funds forareas in need, i.e. poverty

reduction, health care


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Preventing the next financial crisis: Solutionssuggested by survey participants

Improve monitoring &forecasting

Be more proactive in

budgeting, programmanagement & planning

Invest in risk management

Develop medium- to long-

term strategies foravoiding crises; strategicplanning

Increase transparency; openbudget preparation

Thoroughly analyze the cause

of this crisis & apply lessonslearned; understand thepitfalls & avoid them.

Learn from others; get

involved in internationalconferences & organizationsthat work to prevent theproblem

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Questions?

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Contact

Leila Aridi AfasGrant Thornton LLP

Global Public Sector333 John Carlyle Street, Suite 500Alexandria, VA 22314

P 703.837.4442

M 571.527.9665E [email protected]

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4.45-5.15pm_icgfm survey presentation_(afas and clyburn) english

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