XBRL in Municipalities
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Transcript of XBRL in Municipalities
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
11
Alejandro AmeliviaAlejandro AmeliviaHead of e-government areaHead of e-government area
New perspectives on financial data reporting across different levels of government
Ministry of Economy and Finance. Spain.Ministry of Economy and Finance. Spain.
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
22
THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH LOCAL AGENCIES (DGFCLA)WITH LOCAL AGENCIES (DGFCLA)
THE DGFCLA is responsible for the financial relationships between central and local goverments.
Functions:
Applying and managing the local financing system
Technical assistance and management of inquiries regarding budgetary and financial system of local agencies
Preparing and publishing statistics on financial and budget activity of Local Agencies
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
33
FINANCIAL LOCAL INFORMATIONFINANCIAL LOCAL INFORMATION
The ministry of economy and finance (meh) has competences for requesting local governments to report financial information
The local budget settlement data are used in the decision making process about local financing and in budgetary statistics design
Local Governments have to report a copy of their annual budget settlement (year t) to the central Administration before march 31 (year t+1).
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
44
LOCAL BUDGET SETTLEMENT DATA REPORTSLOCAL BUDGET SETTLEMENT DATA REPORTS
Potential units reporting their data:
8.110 local governments
1.615 organisms dependent on the administrative structure of local governments
51 provincial governments
160 organisms dependent on the administrative structure of the provincial governments
>9000 other local entities and its dependent units
Total: 18314 supervised entities
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
55
MUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATIONMUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATION
> 1.000.000 inhabitants 2 0,02 4.678.380 10,83
De 500.001 a 1.000.000 inhabitants. 4 0,05 2.676.465 6,19
De 100.001 a 500.000 inhabitants. 52 0,64 10.130.473 23,45
De 50.001 a 100.000 inhabitants. 72 0,89 4.853.517 11,24
De 20.001 a 50.000 inhabitants. 207 2,55 6.131.649 14,19
De 5.001 a 20.000 inhabitants. 877 10,82 8.525.702 19,74
<= 5.000 inhabitants. 6.893 85,01 6.058.828 14,03
Total 8.107 99,98 43.055.014 99,67
Cities with Special Autonomy Status 2 0,02 142.670 0,33
Total 8.109 100 43.197.684 100
%Population Strata Nº of Municipalities
% Population
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
66
BUDGET REPORTING PROCEDUREBUDGET REPORTING PROCEDURE
Traditionally, the local governments have reported their printed financial information
This fact caused a great delay in final data publication
On the other hand, the risk of errors in data was too high
Since 2006, the virtual office of financial coordination with local agencies offers some new web applications to capture local financial data
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
77
VIRTUAL OFFICE OF FINANCIAL COORDINATION WITH LOCAL VIRTUAL OFFICE OF FINANCIAL COORDINATION WITH LOCAL AGENCIES AGENCIES
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
88
VIRTUAL OFFICE: IMPROVING PROCESSESVIRTUAL OFFICE: IMPROVING PROCESSES
The virtual office was intended to be an open communication channel between MEH and local entities
From the virtual office, authorized local users can easily access online applications in order to immediately submit their data, reducing time to gather and publish the information
The communication is “full duplex”
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
99
VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA CAPTURECAPTURE WEBWEB APPLICATIONAPPLICATION
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1010
PROCEDURE FOR DATA CAPTUREPROCEDURE FOR DATA CAPTURE
Current possibilities when submitting information:
Data Entry (typing) in web forms
Data import from Excel spreadsheets
Submission of XBRL instances
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1111
A LEGAL DISPOSITION TO MODERNIZE DATA CAPTUREA LEGAL DISPOSITION TO MODERNIZE DATA CAPTURE
Establishes general conditions and procedure for submitting Local Governments budget settlemens
Order EHA/468/2007, February 22Order EHA/468/2007, February 22
Data signing exempts the local financial manager from sending a printed, hand-signed copy of the budget
First legal text in Spain to mention XBRL. This law regulates data transmission in three possible ways: Typing, Spreadsheet importing and XBRL transmitting.
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1212
LOCAL FINANCIAL DATA. FORMAT CONFLICTSLOCAL FINANCIAL DATA. FORMAT CONFLICTS
Local agencies are free to use any application or database to manage and store their budgetary data
A standard interchange format was required. It should
• be easy to use by all the local agencies
• be able to store or display any kind of budgetary data
• be flexible enough to fit any existing storing system
So it had to be !
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1313
TRADITIONAL PROCEDURE: MORE WEAK POINTSTRADITIONAL PROCEDURE: MORE WEAK POINTS
The information is demanded by other institutions, such as external financial control courts (regional and national), regional governments, banks… And it was difficult to share.
This fact means that local corporations have to send the same information using different formats in order to accomplish all legal requirements
And consequently, increasing their management costs
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1414
THESE DISADVANTAGES CAN BE ELIMINATEDTHESE DISADVANTAGES CAN BE ELIMINATED
The DGFCLA has considered XBRL as the best solution for an efficient financial data interchange, where so many organizations are involved
When using XBRL all the actors take some advantage
• Public administrations
• Audit and external control institutions
• Universities
• Banks
•Analysts
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1515
MODEL BASED ON XBRL. EFFICIENCY GAINSMODEL BASED ON XBRL. EFFICIENCY GAINS
The use of XBRL in local budget reporting provides:
• Better information transparency
• Less time to publish data
• More quality on information
• Costs reductions
• Better G2G relationships among all the actors
• Better G2A relationships
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1616
LENLOC: DEPLOYMENT ESTRATEGYLENLOC: DEPLOYMENT ESTRATEGY
Developed by XBRL Spain and DGFCLA
Difficulties
• Small L.A. have no resources
• Different “Source” accounting applications
DGFCLA focused on Accounting Applications firms
• 5 firms 90% Local Agencies
•Opportunity to increase business
• XBRL is recomended by Law
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1717
LENLOC TAXONOMYLENLOC TAXONOMY
Local Accounting application(any)
Datavisualization
XBRLLENLOCInstance Database
Automaticdump
Data Analysis and transformation
Valid data
Validated data
Errorsdescription
Invalid data
User checks and signs
Signed data
Local Agency Ministry
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1818
LENLOC TAXONOMYLENLOC TAXONOMY
LENLOC STRUCTURE (I)
AccountsAccountslenloc-cta-2007-01-31.xsdlenloc-cta-2007-01-31.xsd
FunctionsFunctionslenloc-fun-2007-01-31.xsdlenloc-fun-2007-01-31.xsd
Common ElementsCommon Elementslenloc-com-2007-01-31.xsdlenloc-com-2007-01-31.xsd
Ordinary ModelOrdinary Modellenloc-com-2007-01-31.xsdlenloc-com-2007-01-31.xsd
Simplified ModelSimplified Modellenloc-com-2007-01-31.xsdlenloc-com-2007-01-31.xsd
Budget SettlementBudget Settlementlenloc-liq-2007-01-31.xsdlenloc-liq-2007-01-31.xsd
FunctionsFunctionslenloc-fun-2007-01-31.xsdlenloc-fun-2007-01-31.xsd
AccountsAccountslenloc-cta-2007-01-31.xsdlenloc-cta-2007-01-31.xsd
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
1919
LENLOC TAXONOMYLENLOC TAXONOMY
LENLOC STRUCTURE (II) • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/2007-01-31
– Authority: Ministerio de Economía y Hacienda (meh)– Country: España– Report: Financiero (fr) – Account: GAAP – Legal References:
• Orden Ministerial: 8 de Septiembre de 1999• Orden EHA 466/2007
– Version Date: 2007-01-31• Prefix:
– Budget Settlement Schema: lenloc-liq• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-liq/2007-01-31
– Ordinary model Budget Settlement Schema: : lenloc-ord• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-ord/2007-01-31
– Simplify model Budget Settlement Schema: : lenloc-sim• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-sim/2007-01-31
– Common Elements in Simplify and Ordinary Budget Settlement Schema: : lenloc-com• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-com/2007-01-31
– Accounting Schema: lenloc-cta• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-cta/2007-01-31
– Functions Schema: lenloc-fun• Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-fun/2007-01-31
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2020
LENLOC TAXONOMYLENLOC TAXONOMY
LENLOC STRUCTURE (III)
• Files:– lenloc-liq-2007-01-31.xsd– lenloc-ord-2007-01-31.xsd
• lenloc-ord-2007-01-31-presentation.xml• lenloc-ord-2007-01-31-definition.xml• lenloc-ord-2007-01-31-label.xml• lenloc-ord-2007-01-31-reference.xml• lenloc-ord-2007-01-31-calculation.xml
– lenloc-sim-2007-01-31.xsd• lenloc-sim-2007-01-31-presentation.xml• lenloc-sim-2007-01-31-definition.xml• lenloc-sim-2007-01-31-label.xml• lenloc-sim-2007-01-31-reference.xml• lenloc-sim-2007-01-31-calculation.xml
– lenloc-com-2007-01-31.xsd• lenloc-com-2007-01-31-label.xml• lenloc-com-2007-01-31-reference.xml
– lenloc-cta-2007-01-31.xsd• lenloc-cta-2007-01-31-presentation.xml• lenloc-cta-2007-01-31-definition.xml• lenloc-cta-2007-01-31-label.xml• lenloc-cta-2007-01-31-reference.xml
– lenloc-fun-2007-01-31.xsd• lenloc-fun-2007-01-31-presentation.xml• lenloc-fun-2007-01-31-definition.xml• lenloc-fun-2007-01-31-label.xml• lenloc-fun-2007-01-31-reference.xml
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2121
LENLOC TAXONOMYLENLOC TAXONOMY
LENLOC STRUCTURE(IV)
LENLOC imports the DGI taxonomy in order to identify local entities and their dependent organizations
Two hypercubes or n-cubes of concepts regarding expenses, incomes and functions: accounts (lenlo-cta) and functions (lenloc-fun)
Two principal schemas: ordinary and simplified (lenloc-ord and lenloc-sim) depending on municipal population
A schema which collects the rest of the common concepts ( lenloc-com)
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2222
LENLOC TAXONOMYLENLOC TAXONOMY
EXAMPLE OF AN XBRL INSTANCE: INCOMES AND EXPENSES
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2323
NEW CAPTURE WEB APPLICATION USING XBRLNEW CAPTURE WEB APPLICATION USING XBRL
LENLOC WEB Application. Video.
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2424
DERIVED BENEFITS OF USING XBRL BY THE LOCAL ENTITIESDERIVED BENEFITS OF USING XBRL BY THE LOCAL ENTITIES
Advantages of using LENLOC for transmitting data
Transmission from the local budget settlement is fast, easy, secure, and guarantees data consistency.
Improves the process transparency, as well as the analysis and control of budgetary data from local corporations
It allows users to consult detailed and validated information from its original source
Administrative costs reduction
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2525
LENLOC Results: OverallLENLOC Results: Overall
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2626
LENLOC RESULTS: Evolution ox XBRL senders and signaturesLENLOC RESULTS: Evolution ox XBRL senders and signatures
20062007
2008*
3,35% 10,98%
55,80%
4,99%15,39%
53,15%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
90,00%
100,00%
Years
XBRL %
Total Local Entities Local Agencies
% Signed
8,90%15,45%
53,73%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
2006 2007 2008*
Years
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2727
FUTURE EVOLUTION (I): LENLOC 2010FUTURE EVOLUTION (I): LENLOC 2010
New budget structure published
Released: LENLOC 2010 Taxonomy
First instance to be received: March 2011
Cooperative work with Local Accountance app developers
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2828
FUTURE EVOLUTION (II): PENLOC 2010FUTURE EVOLUTION (II): PENLOC 2010
Initial budget transmission
Demanded by Local Agencies
First instance to be received: January 2010
Released: Penloc 2010
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
2929
FUTURE EVOLUTION (III): Convergence of taxonomiesFUTURE EVOLUTION (III): Convergence of taxonomies
The public sector taxonomy subgroup, conducted by the igae, was created in the XBRL Spain association …
… aiming to disign a taxonomy for reporting the local governments general account to the external financial control courts (regional and national)
Now, the DGFCLA and IGAE have proposed the convergence of lenloc and public sector taxonomies into a new one
DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH REGIONAL GOVERNMENTS AND LOCAL AGENCIES
STATE SECRETARIAT FOR FINANCE AND BUDGETS
GENERAL SECRETARIAT FOR FINANCE
MINISTRYOF ECONOMYAND FINANCE
3030
Thanks for your attentionThanks for your attention