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PFM Good Practice Discussions at FISC

 

January 31, 2013

Doug Hadden, VP Products

FISC 2013 is our Seventh Annual FreeBalance International Steering Committee conference. The FISC approach differs from the traditional technology user group conference in many ways – good ways, we think

For one thing, FISC is about enabling customers to influence FreeBalance, not the other way around.

In the spirit of transparency, we were live tweeting from FISC last week and we’ve ‘storified’ it below. This shows conversations from government customers on PFM good practices and the results of our latest survey:

Good Practices & PFM Benchmarks

Discussion and lessons-learned in public financial management benchmarks and international assessments at the FreeBalance International Steering Committee in January 2013

Storified by · Wed, Jan 30 2013 10:59:27

FreeBalance customers: donors seem to have no or little methodology for assessments, no tech recommendation #FISC7FreeBalance
#FISC7 #PFM good practice: use of #PEFA helps t motivate reformFreeBalance
#FISC7 #PFM good practice: resource transparency via @revenuewatch & #EITI also helps in #budget revenue forecastsFreeBalance
#FISC7 #PFM good practice: improvements in @OpenBudgets critical to achieving citizen trust & donor fundingFreeBalance
MT @anticorruption: NEW #OpenBudgetIndex 2012 infographic summarizes & visualizes main findings of Open Budget Survey http://bit.ly/V5dcPlRevenue Watch
#FISC7 #PFM survey finds #PEFA assessments monitored most by international government financial management pic.twitter.com/n05eT4BrFreeBalance
#PEFA assessments used for analyzing #payroll controls in some countries #FISC7FreeBalance
example of #PEFA assessment work: improved cash management, #EITI support in FreeBalance country #FISC7FreeBalance
discussion about controls among systems for #PEFA assessments #FISC7FreeBalance
FreeBalance customers agree that need to make the evidence available for #PEFA assessments #FISC7FreeBalance
FreeBalance customer: methodology needed to monitor & benchmark #PFM beyond #PEFA needed #FISC7FreeBalance
discussion at #FISC7 on #PEFA assessment improvements, is there linkage to #corruption perception?FreeBalance
Lessons from FreeBalance government Customers:International governance assessments & benchmarks
FreeBalance customer: often internal assessments tend to lack credibility yet external assessments can have no methodology #FISC7FreeBalance
FreeBalance customer: we do both internal & external #PEFA assessments #FISC7FreeBalance
good practice: process to support #GFS, #IPSAS and other reporting methods should work thru side tables in #PFM #FISC7FreeBalance
countries can have great #procurement law but not operating well in practice #FISC7FreeBalance
ability to track process time between time received invoice & payment critical for business service delivery #PFM #FISC7FreeBalance
first #FISC7 customer presentation: financial #sustainability critical in #PFM reform and information systemsFreeBalance
Lessons from FreeBalance government Customers:Decentralization
discussion of good practices in #PFM #decentralization over years: budget transfers, purchasing following capacity improvements #FISC7FreeBalance
#FISC7 #PFM good practice: #decentralization necessary to improve #budget management efficiencyFreeBalance
Lessons from FreeBalance government Customers:Credible Budgets
#FISC7 #PFM good practice: annual internal budget collaboration meeting & post-budget law pass #budgetFreeBalance
#FISC7 #PFM good practice: #budget collaboration in gov needed b/c overlap in ministry programsFreeBalance
#FISC7 #PFM good practice: encourage line ministry understanding of multiple year implications of #budget & dialog on macroeconomic realityFreeBalance
#FISC7 #PFM good practice: improved #budget execution comes from understanding recurrent implication to capital expendituresFreeBalance
#FISC7 lesson: credibility of budget is the key to #PFM reform, reduction in supplementary budgets over timeFreeBalance
#FISC7 #PFM good practice: engage senior public servants in budget discussions neededFreeBalance
#FISC7 #PFM good practice: internal #budget deliberations & discussions to discuss conformance with proceduresFreeBalance
#FISC7 #PFM good practice: encourage line ministry understanding of multiple year implications of #budget & dialog on macroeconomic realityFreeBalance
#FISC7 #PFM good practice: #budget collaboration in gov needed b/c overlap in ministry programsFreeBalance
#FISC7 #PFM good practice: annual internal budget collaboration meeting & post-budget law pass #budgetFreeBalance
#FISC7 #PFM good practice: improved #budget execution comes from understanding recurrent implication to capital expendituresFreeBalance
#FISC7 #PFM good practice: #decentralization necessary to improve #budget management efficiencyFreeBalance
Lessons from FreeBalance government Customers: Capacity Building
Engaging in #fisc7 capacity building workshop yfrog.com/odm98hwrjFreeBalance
#FISC7 #PFM good practice: networking, sharing lessons, hosting a peer countryFreeBalance
#FISC7 #custserv good practice: document typical errors in #PFM system (& build up knowledge base)FreeBalance
#FISC7 #PFM customer good practice: need internal #support training where people know product & process #capacitybuildingFreeBalance
#FISC7 #PFM customer good practice: train the trainer, continuous #capacitybuilding, quick tips, cheat sheets, custom user guidesFreeBalance
#FISC7 #PFM challenge: #braindrain & lack of capacity is a "binding constraint" on #governance reformFreeBalance
#FISC7 #PFM good practice: change management with awareness & communications with staff, public financialsFreeBalance
#FISC7 #PFM #custserv, another customer describes advantage of local FreeBalance officeFreeBalance
#FISC7 #PFM good practice: use of automated #GRP government resource planning can be part of #capacitybuilding strategyFreeBalance
#FISC7 #PFM good practice: create knowledge transfer methods, attract expats & use 10 year capacity building strategyFreeBalance
#FISC7 #PFM good practice: training needs assessment & continuous training needed for capacity buildingFreeBalance
#FISC7 #PFM good practice: it’s not all about training: needs workshops, study tours, secondment for #capacitybuildingFreeBalance
#FISC7 #PFM good practice: needs to be training for all PFM reforms/business process management changesFreeBalance
#FISC7 #PFM good practice: focus on getting political will through minister reviews, sell benefits of reformFreeBalance
#FISC7 #PFM good practice: Ministry of Finance should be happy when Public Service department is managing payroll + HRFreeBalance
#FISC7 #PFM good practice: move to accrual accounting should be sequenced in governmentFreeBalance
#FISC7 #PFM good practice: Finance Ministry should manage finance transactions for small departments until capacity builtFreeBalance
#FISC7 #PFM good practice: #MDAs #decentralization priority based on budget size & transactionsFreeBalance
#FISC7 #PFM lesson: top 3 reform challenges: capacity, capacity, capacityFreeBalance
#FISC7 #PFM good practice: caution when moving financial management software to ministries, departments, agenciesFreeBalance
customer: having local FreeBalance staff members in country facilitates #custserv on a global basis #FISC7FreeBalance
#FISC7 #PFM good practice: could be better to put current items into fixed assets software then evaluate whether the value all assetsFreeBalance
#FISC7 #PFM good practice: need to consider the cost/benefit to value existing government assetsFreeBalance
#FISC7 #PFM #custserv: in every floor in Ministry of Finance has sign saying: "if you have a problem with FreeBalance, call this number"FreeBalance
#FISC7 #PFM customer good practice: good communications strategy across line ministries for success implementationFreeBalance
#FISC7 capacity building workshop in progress yfrog.com/h8heqncjFreeBalance
#FISC #capacitybuilding workshop:often need to build capacity within capacity building institutions in developing countriesFreeBalance
#FISC #capacitybuilding workshop: continually assess #PFM progress to determine if there are capacity limitationsFreeBalance
#FISC #capacitybuilding workshop: help desk needed in #ICT government implementationsFreeBalance
Lessons from FreeBalance government Customers: Civil Service Management, HR & Payroll
#FISC7 #PFM customer good practice: need #payroll flexibility in developing countries b/c govs pay teachers, police etc.FreeBalance
#FISC7 customer good practice: need for #payroll to connect to #budget to enable forecasting potential varianceFreeBalance
#FISC7 shared challenge: eliminating ghost employees in developing countriesFreeBalance
#FISC7 #PFM good practice: reduce wage bill b/c of ghost employees. Automation finds people with identical bank accounts, addresses etc.FreeBalance
#FISC7 #PFM good practice: get employees on-board for #pensions before they retireFreeBalance
customer: biggest ghost employee problem in #developingcountries is teachers & is highly politicalFreeBalance
#FISC7 #PFM challenge: #payroll huge cost in #developingcountries so ghost employees = lack of salary increase for the restFreeBalance
often the system is at fault because doesn’t always keep up with HR transfers in government #PFM #FISC7FreeBalance
#FISC7 good practice: #audit finds teachers not there, they resurface. Need to check with children & use biometricsFreeBalance
Lessons from FreeBalance government Customers: Treasury & core government financial management
#FISC7 #PFM good practice: even using a small portion of financial software has a huge impact on a countryFreeBalance
#FISC7 #PFM challenge: financial system follows process change, often process change has the biggest impactFreeBalance
#FISC7 #PFM good practice: find realistic benchmarks for gradual change & progressive activation of functionality in financial softwareFreeBalance
#FISC7 one of the few #PFM #bestpractices is use of Treasury Single Account, public financialsFreeBalance
#FISC7 #PFM good practice: #GRP produces quarterly financials prior to legal requirements government resource planningFreeBalance
#FISC7 #PFM good practice: #MTEF budget plans integrate with #budget controls, multi-year commitments in financial systemFreeBalance
#FISC7 #PFM good practice: build in #MDGs into the chart of accounts, so you know how much is being spent on each goalFreeBalance
#FISC7 #PFM reality: without Treasury Single Account, you’re borrowing your’re own money & banks make more moneyFreeBalance
#FISC7 #PFM good practice: support of #QAG2006 for public financial management quality assuranceFreeBalance
#FISC7 #PFM good practice: direct integration with #Asycuda & inland revenue applicationsFreeBalance
#FISC7 #PFM customer: use of financial management software enabled producing timely government fiscal reportsFreeBalance
#FISC7 #pfm good practice: internal & external #audit can clarify misperceptions & add context to governance challenges in governmentFreeBalance
#FISC7 #PFM good practice: use #workflow & exception reporting as quality control in systemsFreeBalance
Lessons from FreeBalance government Customers: Anticorruption
#FISC7 #PFM lesson learned: integration points among financial systems provides #corruption opportunityFreeBalance
#FISC7 #PFM good practice: #anticorruption agency should be able to prosecute directlyFreeBalance
Lessons from FreeBalance government Customers: Aid and donor management
#FISC7 customer #PFM good practice: when donor says do it all in 1 year, ask them where that was every doneFreeBalance
#FISC7 #PFM good practice: % of aid flowing to government #budget is good measure of donor confidenceFreeBalance
#FISC7 #PFM challenge: #donor expectations like #bigbang financial management implementations do not workFreeBalance
#FISC7 customer: #PFM reform is continuous, it’s not static, public financialsFreeBalance
#FISC7 #PFM good practice: #IFMIS / #GRP system #auditFreeBalance
#FISC7: donor forcing 1 country to put money in commercial banks & the other in central bank #aideffectiveness NOTFreeBalance
#FISC7 question: how to track aid that goes for #health ministry outside aid coordination unit & off-budget from gov financial systemFreeBalance
#FISC7 #PFM challenge: direct donor funding to line ministries, #offbudgetFreeBalance
POV: we need to award #donors who coordinate aid with governments & use gov systems & #IATIFreeBalance
POV: we need to call out #donors who refuse to use aid coordination systems or country systems b/c ensures #corruptionFreeBalance
#FISC7 #PFM good practice: having President/Prime Minister chairing business forum to improve "doing business"FreeBalance

Also see:

  • Customers Gather in Ottawa for 7th Annual Steering Committee Meeting
  • Introduction to the FreeBalance International Steering Committee conference, FISC7 in Ottawa
  • FreeBalance International Steering Committee: FreeBalance Product Update
  • Customer Centric Processes in Operation at the FreeBalance International Steering Committee Conference
  • PFM Good Practice Discussions at FISC
  • What are the Incentives for Transparency in Developing Country Governments?
  • 7 Highlights from the past FreeBalance International Steering Committee Conferences
  • 7 Things about the 7th FreeBalance International Steering Committee
  • Top 7 Lessons Learned at FISC7
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    Doug Hadden

    Doug Hadden

    Executive Vice President, Innovation at FreeBalance
    Doug is responsible for identifying new global markets, new technologies and trends, and new and enhanced internal processes. Doug leads a cross-functional international team that is responsible for developing product prototypes and innovative go-to-market strategies.

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