ICGFM Survey & results - Levergood

© Grant Thornton LLP. All rights reserved.© Grant Thornton LLP. All rights reserved.

Global Financial Management Leaders: Responses to an Economically Challenging World

Jason LevergoodGrant Thornton LLP

International Consortium on Governmental Financial Management Annual Conference, Miami, FLMay 17, 2011 – Key Biscayne Marriot Hotel

© Grant Thornton LLP. All rights reserved.

Agenda

• About the 2011 survey

• Impact of the crisis• Investment in infrastructure• Increasing transparency

• 2012 ICGFM survey

2


About the ICGFM survey

• Sponsored by ICGFM, conducted by Grant Thornton

• Survey methodology• Anonymity• Purpose: Examine impact and

responses to economic upheaval and gain ideas for improving financial management

3


Impact of the global financial crisis

• Impact• Stimulus programs

4


Impact of the global financial crisis

5


Impact of the global financial crisis – Stimulus programs

6



7



8


Investment in infrastructure

• Attracting outside investment• Public private partnerships

9


Investment in infrastructure – Attracting outside investment

10


Investment in infrastructure – Attracting outside investment

11


Investment in infrastructure – Public private partnerships

12



13



14


Increasing transparency

• XBRL and financial management

15



16



17



18


Increasing transparency – XBRL and financial management

19


Increasing transparency – XBRL and financial management

20


Conclusions

• All countries have been affected by the global financial crisis– Economic growth, currency values and export revenue

• More than 60% of our respondents adopted stimulus programs – Over half believed stimulus programs to be positive

• Benchmarks for phasing out economic recovery programs included improvement in economic growth, general employment and limit to debt capacity

• Increase in spending on infrastructure was given as the number one area of focus for increased investment– Education / Transportation / Healthcare

• Combating the impact of the crisis resulted in an adoption of extraordinary polices

• More than 75% of all respondents spoke of a new commitment to increased transparency– Adoption of new standards included IAS and IPSAS

21


2012 Global Financial Management Leaders Survey

• Tools of PFM Accountability– Importance and barriers– Standards– Social media– Accountability in action

• media; parliament; public auditors • Survey conducted all week

– Thank you in advance for participation!


Thank you

23


Contact

Jason LevergoodGrant Thornton LLPGlobal Public Sector333 John Carlyle Street, Suite 500Alexandria, VA 22314

P 703.637.3006E [email protected]

24


Has the global financial crisis had an impact on your country?

1 2 3

95%

0%5%

1. Yes

2. No

3. Do not know/does not apply


Has your country initiated a stimulus program?

1 2 3

69%

5%

26%

1. Yes

2. No



Rate the success of your country's stimulus program.

1 2 3 4

21%

0%

29%

50%1. Very successful

2. Successful

3. No effect

4. Not successful


What are the key indicators that will activate the need to unwind or end your country's stimulus program?

1 2 3 4 5 6

33%

38%

13%

0%

8%8%

1. GDP Growth2. Lower

unemployment3. Improved debt

capacity4. Inflation5. Interest rates6. Political climate


Which areas of Infrastructure present the most critical need for investment?

1 2 3 4 5 6 7 8 9 10

49%

31%

3%

11%

0%

3%

0%0%

3%

0%

1. Education

2. Transportation

3. Healthcare

4. Energy/Renewables

5. Information Technology

6. Housing

7. Water

8. Waste treatment

9. Defense

10. Prisons


What are your areas of focus to increase outside investment?

1 2 3 4 5

34%

24%

0%

21%21%

1. Improve necessary infrastructure

2. Improve legal system

3. Greater transparency

4. Tax incentives5. Currency Reforms


Has your country used public private partnerships (PPPs) to find sustainable funding for infrastructure investments?

1 2 3

73%

8%

19%

1. Yes

2. No



Please rate the success of your country's PPPs.

1 2 3

52%

19%

29%

1. Successful

2. No effect

3. Not very successful


Why has your country not used PPPs?

1 2 3 4

45%

23%

13%

20%

1. Lack of policy and guidance

2. Lack of PPP unit to coordinate efforts on the ground

3. Political circumstances

4. Lack of interest from investors or operators


Has your country made or renewed a strong commitment to improve public financial management transparency for your citizens?

1 2 3

93%

0%7%

1. Yes

2. No



Has your country adopted new international standards to improve public financial management governance and transparency?

1 2 3

76%

2%

22%

1. Yes

2. No



Which new international standards has your country adopted?

1 2 3

23%

40%

37%

1. International Auditing Standards

2. International Public Sector Accounting Standards

3. Government Financial Standards/Compliant Chart of Accounts


Has your country adopted eXtensible Business Reporting Language (XBRL) to enhance transparency and public access to data?

1 2 3

12%

22%

66%

1. Yes

2. No



Are there plans to adopt XBRL in the future?

1 2 3

28% 28%

44%

1. Yes

2. No


ICGFM Survey & results - Levergood

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