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Professionalising the public sector Global steps to better PFM

Alan Edwards, International Director, CIPFA

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CIPFA is campaigning for stronger government accounting and audit …

Partnerships with ..

International agencies

National governments

Multi lateral development banks

Charitable foundations

Professional accountancy institutes

Accountancy and other firms

Academic institutions

Representative international bodies

‘Making a step-change in government accounting and auditing is completely within leaders’ control. The on-going

crisis screams out for urgent concerted global action.’

Chris Bilsland,

CIPFA President

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We are seeing signs that calls for PFM reform are growing…

Draft Declaration on Good Financial Governance in Africa

Core principles

Transparency

Accountability

Institution building

Results orientation

Balancing reforms and capacity

Autonomy in reforms choices

A framework to be adopted by all Finance Ministries across Africa, potentially supported by a better organised profession in Africa.

Eurostat review of accrual accounting and IPSAS across EU

Likely to recommend adoption of accruals accounting by EU and member states

IPSASs represent an indisputable reference framework for EU harmonised public sector accounts ("EPSAS")

Gradual stage approach to implementation of EPSASs

Some issues:

Capacity for implementing accruals

Relationships with the profession

Obtaining multi-partisan support

Education for politicians

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One possible model …

Global PFM qualifications

Global PFM community

Global PFM thought leadership

In short a Global PFM profession

Global PFM donor funding

Global approach to PFM capacity building

Global PFM products and services

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Professional training

• Accredited Training Partners

• UNDP

• FreeBalance

• Dual designation

• India SAI

Capacity Development

• World Bank/DFID

• Nigeria

• Lesotho

• Bangladesh

• Balkans

• Sri Lanka

Strengthening PFM around the world …

International Standards

• IPSAS implementation partnership - EY

• Eurostat - FEE

• IFAC Public Sector Governance

• IIA/CIPFA

PFM projects

• FM model - GFOA

• Associates – DFID - TCI

• Partners – PwC - EU

• Partners – WYG – Tajikistan

• Partners – NAO - Trinidad

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The largest PFM reform programme is being undertaken in Bangladesh…

Bangladesh aspires to become a middle income country with appropriate public service institutions and management

SPEMP is a multi year multi agency programme of reform

Aims:

Strengthen and modernize core institutions of budgeting and financial management for stronger, more accountable and transparent public institutions.

Improve the effectiveness of formal institutions of financial transparency and accountability for stronger and more capable oversight functions of the government, ensuring accountability

Build a better informed public: Citizens who are aware of how tax money is being spent and can demand better management of public funds for better delivery of public service

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CIPFA is leading SPEMP-B – Component 3

Project Development Objective “to build the faculty and

management practices of FIMA to deliver appropriate short courses in PFM and to become approved to deliver internationally recognised professional accreditation courses in PFM”

Expected Outcomes Over 300 staff undertaking

CIPFA professional training

Stronger sustainable FIMA

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Sri Lanka is embracing public finance reform and IPSAS…

Sri Lanka has embarked on a major PFM reform programme

CIPFA is assisting ICASL to explore building a public sector stream into their existing qualification framework

This is likely to involve utilising modules from CIPFA’s existing IPFM qualifications

In addition CIPFA is assisting with some initial training on IPSAS and their applicability to Sri Lanka

This will involve tailoring some training materials from CIPFA’s Cert IPSAS plus some training of trainers in Sri Lanka

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Some PAOs have embraced dual designation …

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In Africa we have created partnerships with PAOs … The Accountant General of

the Federation

The Auditor General for the Federation

The Federal Treasury Academy

The World Bank

The Institute of Chartered Accountants of Nigeria

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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 are adopting professional training for their finance staff …

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Training is crucial for IPSAS implementation …

CIPFA supports individuals, organisations and PAOs prepare for IPSAS

The Certificate explains each standard in detail

It can be studied online, face to face or via distance learning

Assessment is via a two hour online examination

A cash IPSAS only variant is available

www.cipfa.org/Training-and-Qualifications/Qualifications/Certificate-in-

International-Public-Sector-Accounting-Standards-Cert-IPSAS

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CPD for public finance staff is a universal demand …

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The PFM Academy

ATPs

IPFM courses

Cert IPSAS

Networks & Forums

Publications

Conferences

Other events

Government

Group fees and

subscriptions

Individual fees and

subscriptions

CIPFA

Looking ahead – a new PFM Academy?

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Professionalisation – what works best … Bottom-up approach – addresses training and development

needs at day-to-day operational level

Locally led and managed programmes

And

Tangible link to development of a professional qualification

Genuine, active partnership of equals between local providers and external supporter(s)

Supportive, long-term assistance from donor

Integration of ‘academic’ with workplace aspects of learning

Proven success in raising qualification levels and capacity within the sector

Society that recognises the value of a professional qualification

HR systems that reward professional development

Sustainability built in from day one

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Outputs from PFM professionals…

prepare budgets and financial statements

design PFM systems

give assurance

provide advice

certify accuracy and integrity

monitor compliance

Quality accounts and unqualified audits

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Outcomes from PFM professionals…

better quality decision making

more effective targeting of resources

stronger accountability

more efficient use of resources

greater comparability Donor/ lender

confidence in country systems

improved transparency

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If we do that we will have Fixed the Foundations …

And stopped any more dominoes falling!

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Professionalising the public sector

Global steps to better PFM

Alan Edwards International Director

CIPFA alan.edwards@cipfa.org Tel +44 207 543 5690