22 november 2011professionalising public financial management1 government of south sudan capacity...
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Professionalising Public Financial Management 122 November 2011
Government of South SudanCapacity Building Trust Fund
Readiness Assessment for Professionalisation of Public
Financial Management
End of Assignment Presentation
Tony RedmondAssistant International Director, CIPFA
22 November 2011
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Content of Presentation
Methodology and conduct of the Readiness Assessment
Outline structure of accountancy profession Analysis of issues/challenges encountered Identification of offsetting strengths Recommendations – Public Financial
Management Recommendations – Government
Accountancy Training Centre (GATC)
Terms of Reference The study was required to cover the following areas:-
the current state of financial management reform in South Sudan:- systems and procedures, progress in reform, extent of
existing professionalisation, commitment to the idea; the PFM human resource capacity development
infrastructure of South Sudan:- existing qualification provision (extent, accessibility,
content), teaching institutions, the role and activities of the local accountancy
profession in South Sudan:- size and scope, development state, extent and
effectiveness of regulation, relationship with government
Examination of relationships between donor partners, government and profession
Business planning for GATC
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The Accountancy ProfessionArchitecture - Institutions
• International Federation of Accountants• Membership body for national professional bodies• Member bodies must meet certain rules about education
standards, admission requirements, ethical and behavioural standards and life-long learning (pre- and post-qualifying development programmes)
• National Accountancy Institutes• Assess suitability of aspirant members for admission• Develop and enforce ethical and behavioural codes of
conduct• Provide technical and other forms of support to members• Adopt and enforce national and international accounting
standards• Must act always in the public interest not just the sectoral
interests of their members
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The Accountancy ProfessionArchitecture - Standards
• International Accounting Standards Board• Develops and disseminates standards for the practice of
accountancy and audit worldwide – International Financial Reporting Standards (IFRS) and International Auditing Standards (IAS)
• IFRS and IAS standards are mandatory on all bodies in membership of IFAC (but can be adapted for local use)
• Public Sector Committee of IASB• Development of International Public Sector Accounting Standards
(IPSAS)• International Organisation of Supreme Audit Institutions
(INTOSAI)• External audit standards for the public sector – ISSAIs
• National Accounting Standards Boards• Development of local standards and adaptation of international
standards
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Professionalism Professionals:- possess the wide range of underpinning knowledge and
understanding to carry out their own work and also to comprehend the wider issues relating to how systems and procedures interact;
display work-related competences which enable them to deliver the outputs required of them efficiently and effectively and with minimum levels of supervision;
comply with independently established and enforced standards in the execution of their work and the exercise of their technical and managerial responsibilities;
have demonstrated their mastery of the necessary knowledge and competences through definitive, summative assessments conducted by an independent assessment agency;
are committed to a programme of lifelong learning to adapt and improve their knowledge, understanding and competence in line with developments in their field;
subscribe to an independent code of conduct which governs their attitudes and behaviour and breaches of which can lead to externally imposed sanctions on their continued status and earning capacity.
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Professionalisation is........
NOT training
a systemic transformation of the way work is done
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Professionalisation Professionalisation requires:- the contextual conditions conducive to the establishment
and sustainable development of the environment in which professionals can flourish;
the existence of individuals qualified to become members of the profession in that country
non‑financial managers and other role players having the skills, support and other resources to play their part in financial management, including taking responsibility for the resources they manage and formulating and controlling their budgets;
the presence, on a sustainable basis, of a recognised profession in the country, normally represented by a professional association, body or institute;
training capacity locally to provide the, products and services required by the financial management community in the country or region
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Financial Management Reform in Emerging Countries
Currently three main (inter-connected) approaches:- reform of technical systems, new equipment and technology, ad hoc (short course) training to support reform
Increasing concern amongst development partners at sustainability of this approach
High quality financial management is associated with the development of professionally qualified personnel backed by externally enforceable accountancy and audit standards
Long-term gains will be consolidated only through a step-change in the levels of competence of accountancy and audit professionals
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The Recognition StudyWhat Happened?
Arrived Monday 7 November (departing pm Tuesday 22 November) Meetings with
Government finance professionals in the Audit Chamber the Ministries of Finance of Central Government and East
Equatoria State The Local Government Board
Human Resource Development - Ministry of Labour Donor partners – World Bank, JDT, DFID, USAID, CIDA, AfDB Donor Coordination Unit of MoFEP GATC and the University of Juba Project managements in PFM field – MoFEP, CBTF Coordinator of embryo accountants’ association
Study of various documents from MoFEP, Ministry of Labour, donor partners, GATC consultants
Final Report and recommendations due by 31 December 2011
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So where do we go from here.......?
We can’t go on like this............
But we mustn’t change anything......
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We can’t go on like this....The Challenges• Low or very low capacity throughout the public financial
management system• Lack of effective ‘soft’ support systems – HRD policies and
procedures, job descriptions, financial regulations and codes• Absence of strategic vision of how to tackle these• Efforts to address needs heavily concentrated on Juba• Uncoordinated approaches between donor partners and individual
government institutions – supply led initiatives• Minimal skills transfer to date – capacity replacement rather than
capacity development• Workbased training not related to professional development• GATC in its current manifestation is unsustainable• Short-term consultancies in GATC have failed to achieve any real
improvement in standards or extent of professional development• No local professional body in either private or public sector hence
no local accounting or ethical/behavioural standards• No access to international standard qualifications in the profession• Widespread concerns about work ethic in the civil service
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Some Rays of Sunshine! Things can only get better! Widespread recognition in government that standards must be
raised Government plans for budget support from donor community –
incentive to improve Data on accountants working in central ministries now being
collected (but needed for budget, internal audit and procurement specialists as well)
Audit Chamber strategic plan completed and awaiting approval
Ministry of Labour strategic plan on HRD in the civil service nearing completion
PFM donor group now established and operational under the leadership of the World Bank
First stirrings of activity in establishment a local professional association
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But we must change things.......Some Big Answers……..
• Long Term strategy (up to 15 years in 5-year tranches) based on improved information and communications
INTEGRATION INTEGRATION INTEGRATION between
technical reform projects and training strategy donor-funded initiatives and identified/prioritised training needs
(and with each other) workplace training and professional development PFM HRD strategy and civil service HRD strategy professional development and skills transfer to local personnel professional and technical training and basic skills development training strategy and recapacitation of GATC training strategy and ‘software’ developments in PFM institutions public and private sector professionalisation
Commitment to see the strategy through – no more ‘two-year’ solutions!
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.......Leading to the Big Idea Appoint a PFM Capacity Building ‘Czar’ who would:-
be the custodian of the strategic plan coordinate with government and donor partners on
implementation of the plan packaging activities into specific projects specifying and tendering for implementation of
packages oversee the recapacitation of GATC ensure extensive skills transfer at all levels of the PFM
system provide assistance to the emerging accountants’
association be recruited initially with the support of an international
professional body with substantial PFM experience work with PFM institutions on the development of
‘software’ start work no later than mid 2012
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Recommendations Two sets General PFM
Short-term (January to June 2012) (Foundation Stage)
Medium Term (July 2012 to June 2015) (Intermediate Stage)
Long term (from July 2015) (Implementation Stage)
GATC Short term Medium term Long term
CIPFA International Certificate and Diploma in Public Financial Management
Certificate Stage Financial Accounting (including introduction to audit) Management Accounting (including budgeting) ‘Local’ Module (Public Financial Management in South
Sudan)
Diploma Stage Financial Management Financial Reporting in the Public Sector Auditing and Assurance Managing Organisations
Professional Stage Conversion to full CIPFA professional qualification
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Short Term General PFM
Immediate, comprehensive training needs assessments (TNAs) in MoFEP and line ministries of central government (accounting, budgeting, internal audit and procurement) and the Audit Chamber
Two-month scoping study to develop, cost in detail and gain agreement for the strategic plan
Immediate start on workbased training in the Audit Chamber (using earmarked funding)
GATC Develop strategic relationship with appropriate national and international bodies Conduct feasibility and developmental study for the delivery of CIPFA’s
International Certificate and Diploma (IBD) at the Centre (later in 2012) including training of trainers
Identify and earmark up to 30 potential trainees for first iteration of ICD who will form faculty of GATC once qualifications completed
Establishment of provision to support ‘stranded’ ACCA students Move responsibility for GATC from planning to accounting directorate of MoFEP Upgrade and make new appointment to posts of Head of GATC and deputy Install a generator (PLEASE, SOMEONE!) and make plan for rehabilitation Review overall business plan, make detailed implementation plan and GAIN
GOVERNMENT AGREEMENT TO MAKE THE CHANGES NEEDED
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Medium Term - 1 General PFM
Appoint and deploy PFM ‘Czar’ Develop job descriptions, job specifications, management structures
and other regulatory requirements of MoFEP, Audit Chamber and GATC Commission and implement workbased training in MoFEP based on
workplace competences identified in TNAs Develop management capacity in PFM institutions in cooperation with
Ministry of Labour HRD strategies and plans Conduct ‘Recognition Study’ covering all PFM institutions – deployment
and retention of qualified staff Develop internal training and professional development capacity in
MoFEP and Audit Chamber to complement professional development courses in GATC
Develop and deliver training in finance for non-financial managers throughout central government in conjunction with Ministry of Labour
Conduct comprehensive in-depth TNAs for States and local authorities and commence training delivery
Provide support (and funding) for development of local professional body following IFAC guidelines (including strategic and business plans) and seek sponsor organisation to assist with IFAC accession
Critically appraise progress and prepare/modify plans for long-term implementation
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Medium Term - 2 GATC
Operate one full iteration of CIPFA ICD course for pilot group from July to December 2012
Send best three (?) performers to the UK on secondment to complete full CIPFA professional qualification
Plan for implementation of full chartered accountancy qualification (including fast track scheme for senior staff) locally in conjunction with supporting professional body(s)
Work with Ministry of Higher Education etc to establish recognition of qualifications
Support University of Juba to update and further develop degree and diploma courses (especially public sector options)
Provide study tour facilities/secondments for GATC management to similar government training establishments abroad
Using successful graduates implement longer-term CIPFA ICD training programmes from early 2013
Integrate professional training plans with basic skills development provision
Implement business plan – recruitment and deployment of managers, teaching faculty and support staff and rehabilitation of facilities
Develop necessary competences to support workplace training in PFM institutions
Capacitate Centre to provide training in States as well as Juba
Long Term - 1 General PFM
First long-term plan to be conducted on five-year basis
Roll out lessons learned and procedures developed in central government to the States and local authorities
Roll out training for non-financial managers to States and local government
Continue to implement workbased training programmes in coordination with overall PFM and capacity building strategies
Implement strategic and business plans for local accountancy association recruiting and training staff and developing membership, technical, educational and disciplinary procedures
Initiate and implement process of application for membership of IFAC
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Long Term - 2 GATC Continue to provide basic, foundation and
intermediate level qualifications and tailored short-course training
Develop and implement qualifications courses relevant to the private sector
Implement professional stages of existing qualifications (including the fast track scheme)
Work with new accountants’ association to develop education and training policies and functions
Continue to recruit and develop suitable faculty staff to cope with expanded responsibilities
Establish teaching and assessment operations at State level
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GATC Business Plan Overall aim – to create a centre of excellence for the provision of
accountancy, audit and procurement education and training for government and, ultimately the private, sector in South Sudan
The way forward Change the attitude of government and government
employees to working and studying at the Centre Improve government supervision and expand government
funding Forge strategic partnerships with international and domestic
players Strengthen management and operational capacity Improve physical infrastructure Transfer skills to local personnel Develop effective quality assurance procedures Change the business model – funding through fees and
charges for services provided rather than through government budgets
Develop national coverage through delivery of teaching/ training in States
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Please get in touch
www.cipfa.org.uk
tony.redmond@cipfa.org.uk
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A Final Thought...........
We can’t go on like this............
But we WILL change things......
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Thank you
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