Professional Development for public finance managers, auditors and accountants

Mr. Gordon Ferrier

Head of Global Membership

CIPFA

Public Sector Accountants Characteristics and CIPFA’s Strategy Formulation

cipfa.org

Session outline

• CIPFA’s ‘Whole System Approach’

• CIPFA ‘Keystones in PFM’ series

• Capacity building: organisations and people

• Routes to becoming a CPFA and receiving our support for all accountants and finance staff

• CIPFA working in Malaysia

cipfa.org

CIPFA – the only professional body for people in public finance

The only professional accountancy body in the world to specialise in public services – for 125 years

Influences and shapes public finance landscape by promoting public financial management across the globe

Leads in setting standards for public financial reporting

Trains public finance accountants and supports their continuing professional development. 14000 members, 4000 students in 100 countries, 1300 volunteers and 2000 global customers

Provides a wide range of business and commercial services to the public sector

cipfa.org

• Analytical framework that supports development of effective PFM at country level

• Prompt for improvement

• Holistic model that complements existing assessment tools

• Identifies that an holistic approach is necessary – including a supportive environment

What is the ‘Whole System Approach’?

CIPFA acknowledges DFID’s and other donors’ role in development support

and the role that all bodies and accountants can play globally to support others

cipfa.org

http://www.cipfa.org/policy-and-guidance/reports/whole-system-approach-volume-1http://www.cipfa.org/policy-and-guidance/reports/whole-system-approach-volume-2

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‘The system by which the financial resources are

planned, directed and controlled to enable and

influence the efficient and effective delivery of public

service goals’

better decisions

better value for money

Better outcomes for the taxpayers as:

‘citizens’ in democratic engagement

‘residents’ their communities

‘customers’ receiving services

PFM Definition

cipfa.org

Why whole system?

• Recognises the interconnectedness of key players

• Supports the need for financial accountability, citizen involvement, parliamentary scrutiny and absence of corruption

• Identifies need for improvement across the system –no one initiative on its own is sufficient

• Recognises there are checks and balances in every system – the key is to act together to make PFM effective

The whole is more than the sum of the parts

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Who is it for?

• Governments, donors and their advisors

• Ministry of Finance or Treasury in countries focused on PFM reform

• SAIs

• Professional Accountancy Organisations (PAOs)

• PFM professionals – who design, implement, operate, review, evaluate PFM

PFM and good governance are inseparable

All countries whatever their state of development

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OutcomesSustainable social benefit

Public Financial Management

Institutional Framework

Enablers

Governance

Demand for services and projects

Stakeholder consultation

Delivery of services and productsDelivery of services and productsDelivery of services and products

PFM as part of Good Governance

www.cipfa.org/policy-and-guidance/articles/pfm-a-whole-system-approach

cipfa.org

Embedding PFM:WSA - Key elements

• Learning & Growing

• Standards & Codes

• Monitoring & Control

• Assurance

• Operations

• Legislation

• Strategy & planning

• Scrutiny

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CIPFA ‘Keystones in PFM’ series

• Explaining WSA key

elements:

― Role of CFO in public service organisations

― Stepping Stones to Accrual

― FM Model

― Code of Practice on Managing the Risk of Fraud

― Role of the Head of Internal Audit

― Emerging Stronger

• Available via CIPFA website

www.cipfa.org

• Complementary guidance:

― CIPFA/IFAC

International Framework: Good

Governance in the Public Sector

― Public Sector Internal Audit

Standards

cipfa.org

cipfa.org

PFM Standards & Codes:Role of the CFO Statement

- 5 requirements

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CIPFA Role of CFO Statement

The CFO in a public service organisations:

1. is a key member of the Leadership Team, helping it to develop and implement strategy and to resource and deliver the organisation’s strategic objectives sustainably and in the public interest;

2. must be actively involved in, and able to bring influence to bear on, all material business decisions to ensure immediate and longer term implications, opportunities and risks are fully considered, and alignment with the organisation’s overall financial strategy; and

3. must lead the promotion and delivery by the whole organisation of goodfinancial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively.

To deliver these responsibilities the Chief Financial Officer:

4. must lead and direct a finance function that is resourced to be fit for purpose; and

5. must be professionally qualified and suitably experienced.

cipfa.org

PFM Learning and Growing:Emerging Stronger

Shaping the finance function to meet future challenges:

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PFM Learning and Growing:Vision for the Finance Function

cipfa.org

• We encourage and help design PFM training strategies

― understanding the context to advocate pfm;

― sharing our tools, guidance and experience

― identifying and specifying training needs;

― translating training needs into action plans;

― supporting the delivery of training; and

― evaluating the training.

http://web.archive.org/web/20030731082404/http://www.hm-treasury.gov.uk/media/45D15/Strategic_approach_to_financial_training_Pink_guide(302Kb).pdf

PFM Learning & Growing:Accountants

cipfa.org

● Accountants should take major leadership roles

● Development need?

― ‘to be more effective senior financial people must

improve their ability to work with and influence

members, their senior officers, peers, partners and

staff’

― Pre-CFO promotion and experienced CFOs preparing to

become CEOs

● Bespoke solution developed

― Facilitated series of practical workshop sessions on

leadership in the role

● Action learning sets

PFM Learning & Growing:Leadership

cipfa.org

CIPFA membership for accountants working in public benefit organisations:

• Collaborative approach with partner accountancy bodies to dual CIPFA membership

• ‘Faculty’ approach so that relationships maintained with with bodies working with CIPFA

• Flexibility to support all accountants and finance staff working in PFM

Our role as capacity building individuals, public service organisations and accountancy bodies to ensure strong PFM in the public interest

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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 have adopted CIPFA training for their finance staff …

cipfa.org

Outcomes from PFM professionals…

• Better quality decision making

• More effective targeting of resources

• More efficient use of resource

• Stronger accountability

• Improved transparency

• Greater comparability

cipfa.org

CIPFA is campaigning for stronger government accounting and audit …

Partnerships with ..

International agencies

National governments

Professional accountancy institutes

Accountancy and other firms

Representative international bodies

‘Making a step-change in government accounting and auditing is completely within

leaders’ control.’

cipfa.org

CIPFA in Malaysia

MOU signed with MIA and MICPA

Routes to CIPFA membership

IPSAS Training

AGD Meetings

Thought Leadership

Creating a community of pfm professionals

cipfa.org

Conclusion:

Working in pfm is exciting: financial management, audit, treasury management, investment funds, financial reporting, service the public interest, counter fraud, programmes

Public finance accountants are leaders of reform

Tailored approaches to suit local circumstances are vital

System wide approaches are essential

Collaboration and inclusiveness is key

Professionalising the public sector

adrian.pulham@cipfa.org

Follow CIPFA on twitter:https://twitter.com/cipfa