transperancy & accountability

TNS/Stratek, 2008 Transperancy & Accountability - PFM 1

Transperancy & Accountability

Public Financial Management

Ugur Cebeci, [email protected]

Nusret Güçlü, [email protected]

June 2008


Starting remarks

�Turkey: Government is the primary job provider, not service provider�Traditions

�Fear of change & loosing info power

�Me too!

�OECD: eGovernment is more about “Government” than “e”


eGovernment


Usage of public funds

� Basic 4E rule (Economy, Efficiency, Effectiveness, Environment)

� Public Management : complex & chaotic

� Information kingdoms (silo/stovepipe approach

�Operational fragmentation

�Control ve audit ???


New concepts

� Value chain� Public value� Strategic management�Risk management� Performance management� Internal control� Process management� Knowledge management� ...


.. and accountability

� Strategic planning as the central nervous system

� Policy � goals � objectives

� Economic, efficient and effective collection & utilization of public funds

� Accountability and fiscal transperancy

� Public financial management structure & operations

� Preparation and execution of public budget

� Accounting (accounting ≠ accountability), reporting

� Fiscal control


Politician factor

�Cannot change politicians

�“What do you do for my constituency ?”

�Impact of their decisions

�Make it easier for them to do the right thing!

�Make it more transperant & embarrasing.


Public value

How much do you spend ?

On what ? What do you produce ?

What do you achieve ?

So what ?

PROCESS

Economy Efficiency Effectiveness Evaluation

value for money & performance

SERVICES

Inputs Activities Outputs Outcomes Impact


Process Management

Turn the top one, the work is done

by the bottom oneSelf spinning wheels

Changing wheels into gears

Less effort, more control


Incentive for change

ExogenousEndogenous

Change cultureResistanceHeroes Citizen demand

LegislationReporting mechanisms

Change ? Frightnening... Disturbs stability !?


5018

�If 5018 is the answer, what was the question ?

�Paradigm shift

�The form is there, we need the spirit!


MoF Experience

Knowledge Management

Internal Control

Performance/Process/Risk Management

Service DeliveryOperational Systems

Business Processes

SP > PP > PBB >AR


Strategic Management Model

Goals

&

Objectives

???

Prioritization

Program & Projects

Budgeting

???

???

Prioritization

Program & Projects

Budgeting

???

Execution

Value

Reporting

Monitoring & Evaluation

Ex-ante ��ex-post

Process

Knowledge

Humanware


Why

�5018

�Internal control

�Transforming PFM and Internal Control System into a more economical and productive one

�Strengthening the government capacity for an effective fiscal management


What

�Project: “Building Process-Based Risk-Focused Internal Control Management Infrastructure for State Departments”

�First step: Expenditure processes, addressing objectives of MoF (SP)


How

� Training�Development of notation� Public Process Management Handbook� Process Management Dictionary�Modeling, including internal control & legislative

links�Use process models as training material &

technical specifications for software development

�Dissemination


Lessons learned

�Change management through project management

�Clear project goals & objectives linked to MoF SP

�Management support and involvement

� Selection & motivation of (multidisciplinary) project team

�Domain expertise, process management expertise

�Continuous information sharing

�Operational software, seeing is believing!

transperancy & accountability

Technology