1. cipfa.org.uk
Professionalising the public
sector
Global steps to better PFM
Alan Edwards, International Director, CIPFA

2. cipfa.org.uk
CIPFA is campaigning for stronger
government accounting and audit …
Partnerships with ..
 International agencies
 National governments
 Multi lateral development banks
 Charitable foundations
 Professional accountancy institutes
‘Making a step-change in government
accounting and auditing is completely  Accountancy and other firms
within leaders’ control. The on-going
crisis screams out for urgent  Academic institutions
concerted global action.’
Chris Bilsland,  Representative international bodies
CIPFA President

3. cipfa.org.uk
We are seeing signs that calls
for PFM reform are growing…
Eurostat review of accrual
Draft Declaration on Good accounting and IPSAS across
Financial Governance in EU
Africa Likely to recommend adoption of
accruals accounting by EU and member
Core principles
states
 Transparency
IPSASs represent an indisputable
 Accountability
reference framework for EU harmonised
 Institution building public sector accounts ("EPSAS")
 Results orientation
Gradual stage approach to
 Balancing reforms and capacity implementation of EPSASs
 Autonomy in reforms choices Some issues:
A framework to be adopted by all  Capacity for implementing accruals
Finance Ministries across Africa,  Relationships with the profession
potentially supported by a better  Obtaining multi-partisan support
organised profession in Africa.  Education for politicians

4. cipfa.org.uk
One possible model …
Global PFM qualifications
Global approach to PFM
capacity building Global PFM community
Global PFM products and Global PFM thought
services leadership
Global PFM donor funding
In short a Global PFM
profession

5. cipfa.org.uk
Strengthening PFM around the world …
Professional Capacity
training Development
• Accredited Training • World Bank/DFID
Partners
• Nigeria
• UNDP
• Lesotho
• FreeBalance
• Bangladesh
• Dual designation
• Balkans
• India SAI
• Sri Lanka
International PFM projects
Standards
• FM model - GFOA
• IPSAS implementation
partnership - EY • Associates – DFID - TCI
• Eurostat - FEE • Partners – PwC - EU
• IFAC Public Sector • Partners – WYG –
Governance Tajikistan
4 • Partners – NAO -
• IIA/CIPFA
Trinidad

6. cipfa.org.uk
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

7. cipfa.org.uk
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

8. cipfa.org.uk
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

9. cipfa.org.uk
Some PAOs have embraced
dual designation …

10. cipfa.org.uk
In Africa we have created
partnerships with PAOs … The Accountant General of
the Federation
The Auditor General for
the Federation
The Institute of Chartered
Accountants of Nigeria
The Federal Treasury
Academy
The World Bank

11. cipfa.org.uk
UNDP are adopting professional
training for their finance staff …
Professional
·Strategic Financial Management
Full CPFA Membership
· Strategic Leadership
Advanced Diploma
Entry point
·Governance, Public Policy and Ethics
with Associate Membership
· Public Finance
appropriate
exemptions · Strategy
· Corporate Financial Reporting
Diploma
Entry point
·Public Sector Financial Reporting
with
appropriate
· Audit · &· Assurance
exemptions · Managing Organisation
· Managing Finance
Affiliate Membership
Certificate
·Financial Accounting
· Management Accounting
Entry point:
students can begin study at any of
the entry points as long as they have
the relevant requirements for entry

12. cipfa.org.uk
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

13. cipfa.org.uk
CPD for public finance staff is a
universal demand …

14. cipfa.org.uk
Looking ahead – a new PFM
Academy?
Government
Group fees and Individual fees and
subscriptions subscriptions
The PFM Academy
IPFM courses Networks & Forums Conferences
ATPs
Cert IPSAS Publications Other events
CIPFA

15. cipfa.org.uk
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
14

16. cipfa.org.uk
Outputs from PFM prepare budgets and
professionals… financial statements
design PFM systems
provide advice
give assurance
certify accuracy and
Quality accounts and integrity
unqualified audits
monitor compliance

17. cipfa.org.uk
better quality decision
Outcomes from PFM making
professionals…
more effective targeting of
resources
more efficient use of
resources
stronger accountability
improved transparency
Donor/ lender
confidence in country greater comparability
systems

18. cipfa.org.uk
If we do that we will have Fixed the
Foundations …
And stopped any more
dominoes falling!

19. cipfa.org.uk
Professionalising the public
sector
Global steps to better PFM
Alan Edwards
International Director
CIPFA
alan.edwards@cipfa.org
Tel +44 207 543 5690