ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Thursday, December 3, 2009

Progress in Public Financial Management Reform

Lack of Trained Professionals Greatest Obstacle to Reform
Liela Aridi Afas and Steve Clyburn from Grant Thonton presented the results of the 2009 ICGFM Survey of Global Financial Management Leaders. This study was recently completed and published. The survey found that the top reason for implementing Public Financial Management (PFM) reforms is to increase transparency.

An informal conference poll was compared to the survey:

Reason for Reform ----------------------------------Survey --Poll
Increase transparency of government &
involvement/participation of citizens ------------------41 -------13
Improve effectiveness of budget expenditures --------29 -------40
Improve accountability to government &
business stakeholders --------------------------------20 -------23
Meet donor community requirements ----------------10 ------ 23

Recommendations were provided to help overcome obstacles to PFM reform. The lack of trained professionals was cited as the greatest barrier to PFM reform. The ICGFM Survey found that technical assistance is the most important resource needed for reform to succeed. Mr. Clyburn pointed out that the challenges faced by public finance managers around the world are similar. Many of the challenges are faced in developed and developing countries.

Top Resources Required -----------------------------Survey --Poll
Technical Assistance ---------------------------------70 -------- 33
Legal Frameworks -----------------------------------17 -------- 30
Automated FMIS -------------------------------------9 -------- 24
Funding ----------------------------------------------4 -------- 12

Many countries lack human capacity and the infrastructure for training, according to Mr. Clyburn. And, the public financial profession is trying to catch up with technology and change.
A poll of participants found that 69% believed that the financial crisis has had an influence on PFM reform. Ms. Afas pointed out that many financial managers thought that the financial crisis has exposed inefficiencies in PFM systems. Transparency is a major theme in the survey.

2010 Grant Thornton ICGFM Progress in Public Financial Management Reform

2010 Grant Thornton ICGFM Avancées réalisées dans la réforme de la gestion des finances publiques

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