ICGFM Survey Presentation Winter 2013 Levergood Rollison

8/13/2019 ICGFM Survey Presentation Winter 2013 Levergood Rollison

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© Grant Thornton LLP. All rights reserved.


Global Financial Management Leaders Survey:Public Financial Management Reform in a Period

of Global Adjustment

Jason Levergood & Julia Roll ison

Grant Thornton International

International Consortium on Governmental Financial Management

Winter Training Conference, Washington DC

December 11, 2013 – International Monetary Fund


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Agenda

• About ICGFM surveys – Survey methodology

– History

– Confidentiality – Purpose

• Introducing PFM Reform in a Period of Global Adjustment

survey report

• Findings

• Conclusions

• Acknowledgements

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About the ICGFM annual surveys

• Sponsored by ICGFM, conducted by Grant Thornton• Survey methodology

• Anonymity

• Purpose: Support the ICGFM mission and provideinsight to PFM professionals for improving government

financial management

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About ICGFM & Grant Thornton annual surveys

• 2005 Resisting Corruption in the PublicSector

• 2010 Progress in Public Financial

Management Reform• 2011 Public Financial Management

Responses to an Economically

Challenging World

• 2013 Public Financial Management

Reform in a Period of Global Adjustment

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2011 survey made a great splash

• PFM Responses to anEconomically Challenging

World

– AGA Journal of GovernmentFinancial Management

November 2011

– Financial Times November17, 2011

– Federal Times 2011/2012


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2013 Global Financial Management Leaders Survey

key categories

• Continuing impact of the crisis

• Implementing risk management strategies

• Strengthening audit practices

• Utilizing procurement systems

• Measuring the effectiveness and efficiency of

service delivery• Increasing transparency


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Organizational affiliation of respondents

56

28

8

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Organization

Other

Academic Institution

Development Bank or Donor Organization

Government Agency


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Global online survey respondent coverage


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Continuing impact of the global financial crisis

SECTION 1

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Continuing impact of the global financial crisis

• 84 percent of respondentsindicated the crisis had an

impact on the PFM reform

agenda

• 76 percent indicated this

impact continues five yearslater

10

76%

18%

6%

Continued Impact of GFC

Yes No DNK or N/A


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Continuing impact of the global financial crisis (cont.)

The crisis triggered [us] to act in a more efficient and effectiveway to diminish administrative expenses; concentrate moreon strategic plans; and develop a framework to make sureefficiencies are achieved. Otherwise, we could just rely onincreasing revenue and the high growth rate.

The global financial crisis has affected our budgetcredibility immensely and, this has been as a result ofthe country's forecasted revenue inflows notmaterializing as expected.

The crisis had minimal impact and did not require policychanges but did provide support for the Government toimprove service delivery effectiveness and efficiency.

Positive

Negative

Not

Appl icable

18%

50%

32%

Effect of GFC

Positive Negative DNK or N/A


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Implementing risk management strategies

SECTION 2

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Implementing risk management strategies

• Increasing recognition of need to

explicitly introduce risk

management strategies into PFM

practices

• Respondents report that risk

management policies are beingdeveloped but implementation is

still limited

38%

33%

29%

Yes (employed risk management strategies)

No (did not employ risk management strategies)

DNK or N/A


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Future costs of current policies

• Less than one-third of participants established improvedmethods for understanding future costs of current policies

• Methods included: – Use of impact assessments or

scenario analyses

– Budget preparation and costforecasts in conjunction with

strategic planning efforts


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Strengthening audit practices

SECTION 3

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Strengthening audit practices

16

54%

26%

20%

Yes No DNK or N/A

• Use of internal audit function wascited as integral to:

– Ensuring transparency

– Stressing independence

• Examples included structural changes to the

organization (e.g., different reporting lines) and policy

changes to strengthen internal audit practices


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Strengthening audit practices (cont.)

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• External audit has a longer presence in PFM andthere are widely adopted international standards

• Respondents reported fewer improvements than withinternal audit practices with less than 50 percent

indicating they had strengthened external practices

• Areas of improvement included:

– Training

– Capacity building


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Utilizing procurement systems

SECTION 4

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Utilizing procurement systems

• Over 65 percent of respondents indicated they

have introduced procurement reforms

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67%

16%

17%

Yes (introduced reforms)

No (did not introduce reforms)

DNK or N/A

• Measures: – Decentralizing procurement systems

– Introducing new procurement legislation – Introducing electronic procurement

systems


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Measuring the effectiveness and efficiency of service

delivery

SECTION 5

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Measuring the effectiveness and efficiency of service

delivery

• Over one-half of respondents indicated they haveincorporated better methods to measure

effectiveness and efficiency

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• Examples: – Incorporate performance management

into the budget process

– Administer surveys to track expenditures

– Increased focus on indirect or unintended

outcomes in addition to desired outcomes


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Increasing transparency

SECTION 6

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Increasing transparency

• Two-thirds of respondents indicated their countryhad increased measures to improve transparency

• Examples included: – Policy changes – Web-based systems

– Public awareness efforts and campaigns

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Increasing transparency through social media

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• Over one-third of respondents have incorporatedsocial media as an element of their PFM systemcommonly through Facebook and Twitter

“Social media is used to spread the contents ofthe annual budget and its usefulness as a policy

instrument meant to transform the lives of the

citizens. Social media is also used in creatingawareness about PFM reforms and its impacton service delivery within the public sector.”


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Conclusions

• Permanent post-crisis adjustments• Great challenges but positive outcomes

– understanding risk

– need for transparency

– improving service delivery

• Variety of crisis impacts region to region

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Acknowledgments

• David Nummy• Julia Rollison

• Grant Thornton US Marketing Team

• ICGFM Executive Committee

• ICGFM Board of Directors

• Grant Thornton International member firms• Grant Thornton US Global Public Sector Marketing

and Knowledge Management teams

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Thank you

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Contact

Jason Levergood

Grant Thornton International

Grant Thornton Global Public Sector 333 John Carlyle Street, Suite 500

Alexandria, VA 22314

P 703.637.3006

E [email protected]

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ICGFM Survey Presentation Winter 2013 Levergood Rollison

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