Post on 30-Aug-2019
Professional Development for public finance managers, auditors and accountants
Mr. Gordon Ferrier
Head of Global Membership
CIPFA
Public Sector Accountants Characteristics and CIPFA’s Strategy Formulation
cipfa.org
Session outline
• CIPFA’s ‘Whole System Approach’
• CIPFA ‘Keystones in PFM’ series
• Capacity building: organisations and people
• Routes to becoming a CPFA and receiving our support for all accountants and finance staff
• CIPFA working in Malaysia
cipfa.org
CIPFA – the only professional body for people in public finance
The only professional accountancy body in the world to specialise in public services – for 125 years
Influences and shapes public finance landscape by promoting public financial management across the globe
Leads in setting standards for public financial reporting
Trains public finance accountants and supports their continuing professional development. 14000 members, 4000 students in 100 countries, 1300 volunteers and 2000 global customers
Provides a wide range of business and commercial services to the public sector
cipfa.org
• Analytical framework that supports development of effective PFM at country level
• Prompt for improvement
• Holistic model that complements existing assessment tools
• Identifies that an holistic approach is necessary – including a supportive environment
What is the ‘Whole System Approach’?
CIPFA acknowledges DFID’s and other donors’ role in development support
and the role that all bodies and accountants can play globally to support others
cipfa.org
http://www.cipfa.org/policy-and-guidance/reports/whole-system-approach-volume-1http://www.cipfa.org/policy-and-guidance/reports/whole-system-approach-volume-2
cipfa.org
‘The system by which the financial resources are
planned, directed and controlled to enable and
influence the efficient and effective delivery of public
service goals’
better decisions
better value for money
Better outcomes for the taxpayers as:
‘citizens’ in democratic engagement
‘residents’ their communities
‘customers’ receiving services
PFM Definition
cipfa.org
Why whole system?
• Recognises the interconnectedness of key players
• Supports the need for financial accountability, citizen involvement, parliamentary scrutiny and absence of corruption
• Identifies need for improvement across the system –no one initiative on its own is sufficient
• Recognises there are checks and balances in every system – the key is to act together to make PFM effective
The whole is more than the sum of the parts
cipfa.org
Who is it for?
• Governments, donors and their advisors
• Ministry of Finance or Treasury in countries focused on PFM reform
• SAIs
• Professional Accountancy Organisations (PAOs)
• PFM professionals – who design, implement, operate, review, evaluate PFM
PFM and good governance are inseparable
All countries whatever their state of development
cipfa.org
OutcomesSustainable social benefit
Public Financial Management
Institutional Framework
Enablers
Governance
Demand for services and projects
Stakeholder consultation
Delivery of services and productsDelivery of services and productsDelivery of services and products
PFM as part of Good Governance
www.cipfa.org/policy-and-guidance/articles/pfm-a-whole-system-approach
cipfa.org
Embedding PFM:WSA - Key elements
• Learning & Growing
• Standards & Codes
• Monitoring & Control
• Assurance
• Operations
• Legislation
• Strategy & planning
• Scrutiny
cipfa.org
CIPFA ‘Keystones in PFM’ series
• Explaining WSA key
elements:
― Role of CFO in public service organisations
― Stepping Stones to Accrual
― FM Model
― Code of Practice on Managing the Risk of Fraud
― Role of the Head of Internal Audit
― Emerging Stronger
• Available via CIPFA website
www.cipfa.org
• Complementary guidance:
― CIPFA/IFAC
International Framework: Good
Governance in the Public Sector
― Public Sector Internal Audit
Standards
cipfa.org
CIPFA Role of CFO Statement
The CFO in a public service organisations:
1. is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest;
2. must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s overall financial strategy; and
3. must lead the promotion and delivery by the whole organisation of goodfinancial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively.
To deliver these responsibilities the Chief Financial Officer:
4. must lead and direct a finance function that is resourced to be fit for purpose; and
5. must be professionally qualified and suitably experienced.
cipfa.org
PFM Learning and Growing:Emerging Stronger
Shaping the finance function to meet future challenges:
cipfa.org
• We encourage and help design PFM training strategies
― understanding the context to advocate pfm;
― sharing our tools, guidance and experience
― identifying and specifying training needs;
― translating training needs into action plans;
― supporting the delivery of training; and
― evaluating the training.
http://web.archive.org/web/20030731082404/http://www.hm-treasury.gov.uk/media/45D15/Strategic_approach_to_financial_training_Pink_guide(302Kb).pdf
PFM Learning & Growing:Accountants
cipfa.org
● Accountants should take major leadership roles
● Development need?
― ‘to be more effective senior financial people must
improve their ability to work with and influence
members, their senior officers, peers, partners and
staff’
― Pre-CFO promotion and experienced CFOs preparing to
become CEOs
● Bespoke solution developed
― Facilitated series of practical workshop sessions on
leadership in the role
● Action learning sets
PFM Learning & Growing:Leadership
cipfa.org
CIPFA membership for accountants working in public benefit organisations:
• Collaborative approach with partner accountancy bodies to dual CIPFA membership
• ‘Faculty’ approach so that relationships maintained with with bodies working with CIPFA
• Flexibility to support all accountants and finance staff working in PFM
Our role as capacity building individuals, public service organisations and accountancy bodies to ensure strong PFM in the public interest
cipfa.org
Affiliate Membership
Full CPFA Membership
Associate Membership
Entry point:students can begin study at any of
the entry points as long as they have the relevant requirements for entry
· Governance, Public Policy and Ethics· Public Finance· Strategy· Corporate Financial Reporting
Advanced Diploma
· Public Sector Financial Reporting· Audit · &· Assurance· Managing Organisation· Managing Finance
Diploma
· Financial Accounting· Management Accounting
Certificate
Entry point with
appropriate exemptions
· Strategic Financial Management· Strategic Leadership
Professional
Entry point with
appropriate exemptions
UNDP have adopted CIPFA training for their finance staff …
cipfa.org
Outcomes from PFM professionals…
• Better quality decision making
• More effective targeting of resources
• More efficient use of resource
• Stronger accountability
• Improved transparency
• Greater comparability
cipfa.org
CIPFA is campaigning for stronger government accounting and audit …
Partnerships with ..
International agencies
National governments
Professional accountancy institutes
Accountancy and other firms
Representative international bodies
‘Making a step-change in government accounting and auditing is completely within
leaders’ control.’
cipfa.org
CIPFA in Malaysia
MOU signed with MIA and MICPA
Routes to CIPFA membership
IPSAS Training
AGD Meetings
Thought Leadership
Creating a community of pfm professionals
cipfa.org
Conclusion:
Working in pfm is exciting: financial management, audit, treasury management, investment funds, financial reporting, service the public interest, counter fraud, programmes
Public finance accountants are leaders of reform
Tailored approaches to suit local circumstances are vital
System wide approaches are essential
Collaboration and inclusiveness is key
Professionalising the public sector
adrian.pulham@cipfa.org
Follow CIPFA on twitter:https://twitter.com/cipfa