23th june 2009, Paris, conference by Alejandro Amelivia in the track "Reducing regulatory burden with XBRL"

1. Alejandro Amelivia Head of e-government area New perspectives on financial data reporting across different levels of government Ministry of Economy and Finance. Spain.

2. THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION 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

3. FINANCIAL 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).

4. LOCAL 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

5. MUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATION

6. BUDGET 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

7. VIRTUAL OFFICE OF FINANCIAL COORDINATION WITH LOCAL AGENCIES

8. VIRTUAL 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”

9. VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA CAPTURE WEB APPLICATION

10. PROCEDURE FOR DATA CAPTURE Current possibilities when submitting information: Data Entry (typing) in web forms Data import from Excel spreadsheets Submission of XBRL instances

11. A LEGAL DISPOSITION TO MODERNIZE DATA CAPTURE Establishes general conditions and procedure for submitting Local Governments budget settlemens Order 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.

13. TRADITIONAL 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

17. LENLOC TAXONOMY

18. LENLOC TAXONOMY LENLOC STRUCTURE (I) Accounts lenloc-cta-2007-01-31.xsd Functions lenloc-fun-2007-01-31.xsd Common Elements lenloc-com-2007-01-31.xsd Ordinary Model lenloc-com-2007-01-31.xsd Simplified Model lenloc-com-2007-01-31.xsd Budget Settlement lenloc-liq-2007-01-31.xsd Functions lenloc-fun-2007-01-31.xsd Accounts lenloc-cta-2007-01-31.xsd

21. LENLOC 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)

22. LENLOC TAXONOMY EXAMPLE OF AN XBRL INSTANCE: INCOMES AND EXPENSES

23. NEW CAPTURE WEB APPLICATION USING XBRL LENLOC WEB Application. Video.

24. DERIVED 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

25. LENLOC Results: Overall

26. LENLOC RESULTS: Evolution ox XBRL senders and signatures

27. FUTURE 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

28. FUTURE EVOLUTION (II): PENLOC 2010 Initial budget transmission Demanded by Local Agencies First instance to be received: January 2010 Released: Penloc 2010

29. FUTURE 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

30. Thanks for your attention [email_address] [email_address]