Public Financials Management
Enables governments to manage tax dollars effectively
Public Financials Management Solutions Overview
(PFM) Public Financials Management software supports the unique budgetary requirements of the public sector and offers features such as commitment accounting and budget management. The modules can be combined and configured in any way and can be progressively activated in line with a sequenced PFM reform program. Features include:
Budget and Commitment Accounting
Supports core government financial functions for unitary governments, national governments, line ministries, sub-national and local governments, and projects.
Assets and Inventory
Supports asset management principles tailored specifically to government needs such as fixed assets, stores, fleet and facilities.
Projects and Job Costing
Supports project management link budgeting and project accounting to project estimates and forecasts.
Fixed Assets and Inventory
Manages asset accounting, depreciation and evaluation. Supports government stores, transfers, inventory counts and consumption.
Journal, Vouchers and Ledgers
Supports traditional accounting cycles used in the public and private sectors.
Public Financials Management Modules
Public Financials Management (PFM) 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 individually or as part of a unified solution. The PFM system enables governments to manage tax dollars effectively.
(PFPF) Core Public Financials
The core foundation for government accounting – budget controls, appropriations, commitment accounting and Chart of Accounts.(PFBC) Budget Controls
Integrated into the FreeBalance Accountability Suite™ systems of record are controls for budget, appropriations and commitments.(PFBR) Budget Transfer Requests
Supports users requesting budget transfers and manages workflow approvals.(PFCB) Cash Books
Simplified ledger and cash book system for fast implementation and stand-alone needs for receipting.(PFFA) Fixed Assets
Supports fixed asset accounting, depreciation, custody transactions and asset transfer management.
(PFFM) Fleet Management
A part of general asset management that includes vehicle-specific needs – warranty, mileage, maintenance, usage, and monitoring and tracking.(PFSI) Stores and Inventory
Enables purchases from stores in the purchasing process, linked to the receiving process.(PFSL) Sub-Ledger
Supports sub-ledgers as an intermediary set of accounts linked to the main ledger.(PFAA) Accountable Advances
Provides functionality that supports control of advance payments, and ensures correct implementation and automatic control over recuperating advances payments.
What is Public Financial Management?
Public Financial Management (PFM) covers the legal and regulatory framework, IT systems and processes used by governments to raise revenue, undertake public spending, account for funds and audit results. It is focused on driving economic and governance reforms using fiscal discipline, predictability, transparency and accountability to strengthen public finances and deliver improved societal outcomes.
Critical to this process is the need to have a unified and integrated financial management information system that provides for budget controls, appropriations, commitment accounting, and the Chart of Accounts. The Public Financials Management pillar of the FreeBalance Accountability Suite™ supports these unique budgetary requirements of the public sector.
What are the Benefits of Public Financials Management?
Some of the features and benefits include:
Budgetary Control
Budgetary funds are mapped to the Chart of Accounts at a predetermined hierarchy level for aggregate fiscal control.Reform and Modernization
Modernizes the financial management structure such as migrating to accrual accounting.Multi-Level Allotment Controls
Supports appropriations, warrants or allocations, mapped to summarized or detailed reports within the Chart of Accounts and to fiscal periods.
Commitment and Obligation Control
Supports a soft commitment to spend or hard commitments to contractual obligations.Real-Time Ledger
Balances ledgers in real-time to ensure budgets are not overspent.
Frequently Asked Questions
Find answers to commonly asked questions about FreeBalance’s Public Financials Management Solution.
FreeBalance’s (PFM) Public Financials Management software is a comprehensive financial management tool designed specifically for governments and public sector organizations. It supports the unique budgetary requirements of the public sector and offers features such as commitment accounting and budget management. The (PFM) Public Financials Management pillar of the FreeBalance Accountability Suite™ comprises a number modules that can be combined and configured in any way and can be progressively activated in line with a sequenced PFM reform program.
FreeBalance’s PFM software can help improve public financial management processes in a variety of ways. Firstly, it offers real-time visibility into financial performance, allowing government officials to monitor budget execution, track expenditures, and manage funds more effectively. Secondly, it provides tools for performance management, enabling governments to set targets, track progress, and evaluate outcomes against predetermined metrics. Finally, the software is designed to ensure compliance with regulations and standards, providing governments with the assurance that their financial operations are transparent, accountable, and auditable. Overall, FreeBalance’s PFM software can help governments optimize their financial resources, enhance their decision-making capabilities, and improve the delivery of public services.
FreeBalance’s Public Financials Management (PFM) software is designed to support the budgetary requirements of the public sector. It includes modules such as budget and commitment accounting, assets and inventory management, project and job costing, fixed assets and inventory, and traditional accounting cycles such as journal, vouchers, and ledgers. The software is configurable and can be tailored to the specific needs of government organizations, and features can be activated progressively in line with a sequenced PFM reform program.
FreeBalance’s (PFM) Public Financials 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 PFM 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 (PFM) Public Financials 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 PFM process to their specific needs. Governments can configure workflows to match their specific business processes, including data collection, analysis, and reporting.
FreeBalance’s PFM 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
The Value of Program Budgeting in a Permacrisis It is unlikely that 2022 will be remembered fondly by governments around the world. In fact, things are so bad that the word 'permacrisis' is the Collins Dictionary word of the year. With governments having to deal with unsustainable levels of public debt and seemingly unrelenting waves of crises, all eyes are once again on Public Financial Management (PFM).
Good Practices in Chart of Accounts Design The Chart of Accounts (COA) or “budget classification” is arguably the most critical part of effective Public Financial Management (PFM) reform and Integrated Financial Management Information Systems (IFMIS) design. The COA for government is more complicated than in the private sector and the COA often changes to reflect legal and financial management reform.
More Than Just Budgeting With more than 50 different modules providing end-to-end public financial management functionality, the FreeBalance Accountability Suite™ can be progressively activated to meet the evolving requirements of your PFM reform program.Want to know more? Please fill out the form below.
Contact FreeBalance to learn how we can help accelerate PFM reform in your country.