Public Expenditure Management
Enables governments to manage all spending functions
Public Expenditure Management Solution Overview
(PEM) Public Expenditures Management manages all functions related to government spending and public expenditure control. Due to the unique needs of government – including budget and commitment controls – this exceeds typical accounts payable functionality common in the private sector. Features include:
Expenditures and Purchasing
Supports expenditure controls for standard expenditures including payment management, multiple purchasing vehicles and the purchasing cycle.
Procurement
Supports fiscal discipline on large-scale government acquisitions including tendering, eProcurement, contract and spend management.
Grant and Social Programs
Supports government grant, loan, and contribution management.
Modules
(PEM) Public Expenditure Management is one of the six core product pillars within the FreeBalance Accountability Suite™ and is composed of a number of modules that can be implemented as a standalone or part of a unified solution. The PEM pillar reflects all functions related to government spending.
(PECM) Contract Management
Contract management includes payment features to manage all aspects of contract payment accounting.(PECT) Catalogue Management
Creates workspaces for procurement with an unlimited number of supplier catalogues for goods and/or services.(PEEP) eProcurement Site
Provides transparency on procurement process, suppliers, pricing and terms – building trust in government.
(PEPM) Payment Management
Initiate payment processes and collection management by expense voucher from any source.(PEGP) Electronic Government Procurement
Supports discipline in finances on large-scale government acquisitions like tendering, eProcurement, contract and spend management.(PEPR) Purchasing and Expenditure
Covers the core government purchase and commitment cycle – requisitions, purchase orders, goods receipt, goods returned, expenses and payment vouchers.
What is Public Expenditure Management?
Public expenditure management (PEM) is public sector budgeting that is focused on the results and outcomes that a government achieves in line with its national development plan. PEM focuses on outcomes and sees expenditures as a means to produce outputs which are needed to achieve desired outcomes.What are the Benefits of Public Expenditure Management?
Some of the features and benefits of a unified Public Expenditure Management solution such as the FreeBalance Accountability Suite™ include:
Budget and Commitment Controls
Ensure that all expenditures are approved and do not exceed budget or allocations established in the system.Purchasing Methods
Develops a range of purchasing instruments such as local purchase orders, petty cash, open contracts, standing offers and special contracts.Vendor Management
Manages vendors, including authorizations, certifications and ratings.Social Benefits
Supports government healthcare programs, pensions, welfare payments and employment insurance.
Purchase Cycle
Manages the entire purchase cycle, including purchase requisitions, purchase orders, goods receipt and goods returned.Procurement
Manages government procurement including contracts, competitive tenders, tender evaluation and vendor disputes.Grant Management
Provides support for grants, loans and contributions to individuals, educational institutions, NGOs and businesses.Intergovernmental Transfers
Manages transfer payments between governments.
Frequently Asked Questions
Find answers to commonly asked questions about FreeBalance’s Public Expenditure Management Solution.
The (PEM) Public Expenditure Management pillar of the FreeBalance Accountability Suite™ enables government agencies to manage their financial resources effectively and efficiently. Our public expenditure software encompasses all aspects of government spending, from purchasing and procurement management to grant management and social programs. Expenditure management is particularly important in the public sector, where government agencies must adhere to strict budget and commitment controls to ensure that public funds are used responsibly and in accordance with established regulations. FreeBalance’s public expenditure management software helps to ensure that government spending is transparent, accountable, and effective, enabling governments to meet their policy objectives and provide essential services to citizens.
The (PEM) Public Expenditure Management pillar of the FreeBalance Accountability Suite™ helps governments to track spending against budgeted amounts and provide real-time data on expenditures, including in-depth analysis of financial data for government performance management. Our software also streamlines procurement processes, from requisition to purchase order to invoice processing, helping to ensure compliance with procurement policies and regulations. It also tracks the progress of projects, monitors costs, and manages project budgets and resources. Automating these manual processes reduces the risk of errors and frees up civil servants time to focus on more value-added activities.
FreeBalance’s (PEM) Public Expenditure Management software offers a comprehensive suite of features to help governments manage their finances efficiently and effectively. The software includes features such as budget and commitment controls, which ensure that expenditures are approved and do not exceed allocated budgets. It also offers a range of purchasing methods, including local purchase orders, petty cash, and special contracts.
The software also includes vendor management capabilities, allowing governments to manage vendors and their authorizations, certifications, and ratings. Additionally, the software supports government healthcare programs, pensions, welfare payments, and employment insurance through its social services solution. It also offers support for grants, loans, and contributions to individuals, educational institutions, NGOs, and businesses through its grant management feature.
Other key features include the ability to manage the entire purchase cycle, including purchase requisitions, purchase orders, goods receipt, and goods returned. The software also enables government procurement, including contracts, competitive tenders, tender evaluation, and vendor disputes.
Finally, FreeBalance’s Public Expenditure Management software helps governments manage intergovernmental transfers by facilitating transfer payments between governments.
FreeBalance’s (PEM) Public Expenditure Management pillar is fully integrated with all other pillars and modules of the FreeBalance Accountability Suite™ and shares the same unified platform, the FreeBalance Accountability Platform™. It provides real-time data analytics and performance metrics through several key features:
- Data integration: The software is designed to integrate with a range of data sources, including government financial systems, HR systems, and other data sources. This allows governments to access real-time data on performance metrics such as revenue collection, service delivery, and program outcomes.
- Data visualization: The software includes powerful data visualization tools that enable governments to create graphs, charts, and other visualizations of their performance data. These visualizations provide real-time insights into government performance, enabling governments to identify trends and patterns in their data.
- Dashboards: The software includes customizable dashboards that display performance metrics in real-time. These dashboards can be configured to meet the specific needs of different stakeholders, providing quick access to the information that is most important to them.
- Alerts: The software includes alerting functionality that can be configured to notify government officials and other stakeholders when performance metrics fall outside of predefined thresholds. This enables governments to take corrective action in real-time, before issues become more serious.
- Performance tracking: The software allows governments to track performance metrics over time, providing real-time insights into how government performance is changing over time. This enables governments to identify areas where performance is improving and areas where additional interventions may be needed.
FreeBalance’s PEM software provides real-time data analytics and performance metrics by integrating with a range of data sources, visualizing performance data, providing customizable dashboards, alerting stakeholders to performance issues, and tracking performance over time. This enables governments to make data-driven decisions in real-time, improving their ability to deliver services effectively and efficiently.
The FreeBalance Accountability Suite™ is massively configurable and highly extensible meaning that it is able to meet any government need. Many PFM experts don’t see much of a difference between configuration or customization – often referring to any adaptation as “customization”. We’ve been talking about the difference for some time and the industry has finally caught up to us by defining configuration as “no-code” customization.
FreeBalance’s (PEM) Public Expenditure Management software is highly configurable and requires little to no software development to meet specific government needs. Some of the ways that the software can be configured include:
- Metrics: Governments can define their own performance metrics, enabling them to track performance against their own objectives and priorities.
- Dashboards: The software includes customizable dashboards that can be configured to display the information that is most important to different stakeholders. Governments can configure dashboards to display metrics, reports, and other information in a way that meets their specific needs.
- Reports: The software includes a range of standard reports, as well as tools for creating custom reports. Governments can create reports that meet their specific reporting requirements, including different data sources, time periods, and report formats.
- Alerts: The software includes alerting functionality that can be customized to meet specific needs. Governments can configure alerts to notify different stakeholders when performance metrics fall outside of predefined thresholds.
- Workflows: The software includes workflow management tools that enable governments to customize the PEM process to their specific needs. Governments can configure workflows to match their specific business processes, including data collection, analysis, and reporting.
FreeBalance’s PEM software is highly configurable, enabling governments to tailor the software to their specific needs. This helps governments to implement performance management processes that are aligned with their unique objectives, priorities, and business processes.
Additional Reading
Managing Public Expenditure Effectively Government entities are constantly looking for ways to save money and improve their processes for managing public expenditure, but it can be difficult to know where to start. Without an effective public expenditure management system in place, governments struggle with waste, inefficiencies, and a lack of transparency. FreeBalance's (PEM) Public Expenditure Management solution is designed to help public sector entities manage their finances more effectively.
The Importance of Public Expenditure Management Public expenditure management (PEM) is the process of managing all functions related to government spending and public expenditure control. Due to the unique needs of government – including budget and commitment controls – this exceeds typical accounts payable functionality common in the private sector which is why ERP systems designed for businesses often fail in government. 
How Can Governments Improve Public Expenditure? Without a fully integrated Financial Management Information System (FMIS), it's difficult for governments to make sure that they're using taxpayer money in the best way possible. This can lead to wasteful spending, corruption, and a host of other problems.Want to know more? Please fill out the form below.
Contact FreeBalance to learn how we can help improve Public Expenditure Management in your country.