Whole System Approach
Improving Public Financial Management around the World
CIPFA Presentation – November 2010
Alan Edwards, International Director CIPFA
cipfa.org.uk
CIPFA

The Chartered Institute of Public Finance and
Accountancy (CIPFA)

The Leading Professional Accountancy Body for public
services

Key Influencer in the Development of Public Policy

Running major PFM development programmes around
the world
cipfa.org.uk
WSA – what is it?





Analytical framework that supports development of
effective PFM at country level
A prompt for improvement
An holistic model that complements existing
assessment tools
A stimulus for review
New thinking supported by DFID
CIPFA thanks DFID for kind support
cipfa.org.uk
Why do we think its important?




Sound PFM is fundamental to international
development and poverty reduction
Public finance should be conducted in public interest
High and exacting standards are needed to
engender the public’s trust
Demonstrable efficiency should be evidenced in use
of public resources
Supports Paris Aid effectiveness declaration 2005
cipfa.org.uk
What does it say?




Advocates a whole system approach to PFM reform
and improvement
Proposes a new definition of PFM – explicitly
recognises the importance of demonstrating
outcomes
Suggests a new reference model – assisting
countries to chart current institutional architecture
Identifies that an holistic approach is necessary –
including a supportive country environment
A framework for developing and strengthening PFM globally
cipfa.org.uk
What is the paper NOT trying to
do?



Be prescriptive – improvement is local and must be
tailored to characteristics, capacities and priorities of
each country
Create a new tool to measure PFM – PEFA is a useful
tool (we train people on how to use it) and there are
many diagnostics like the CIPFA FM Model
Criticise current PFM practice and reform
programmes
CIPFA sees its role as prompting critical analysis not being critical
cipfa.org.uk
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
cipfa.org.uk
Who is included in the whole system?





International sponsors
Global bodies
Regional bodies
National bodies
Sub national/ sector bodies
A clear organisational framework is used to help countries to map their own system
cipfa.org.uk
Who is it for?




Governments, donors and their advisors
Ministry of Finance or Treasury in countries focused
on PFM reform
Accountancy institutes
PFM professionals – who design , implement,
operate, review, evaluate PFM
All countries whatever their state of development
cipfa.org.uk
What are key conclusions?







Using money well is business of every manager
delivering public services
PFM is not just for accountants
Need to stimulate system wide improvement
Better PEFA is not an objective – better outcomes
for citizens and changing lives is
Selecting the PFM reform approach depends on local
priorities and circumstances
Do not forget learning and growing is a key part of
improvement
Donors should not focus on the short term and
immediate fiduciary concerns
There is no one route to better PFM
cipfa.org.uk
What do we want you to do next?





Strengthen PFM – international partners should work
together
Review your whole system of PFM
Identify underperformance eg training providers
with low technical skills
Find if there is an absence of key players eg an
accountancy body with PFM training
Develop sustainable PFM plans eg not just short
courses
In short build a PFM profession
cipfa.org.uk
What is CIPFA doing next?


Sharing lessons learnt re professionalisation
Producing case studies based on our experience
 Lesotho – use of CIPFA International Certificate and
Diploma
 Tanzania – the World Bank PFM SCDI pilot
 Mozambique – strengthening the SAI
 Nigeria – CIPFA/ ICAN twinning and developing the
Federal Training Agency

Holding a major international conference on PFM
trust and accountability in London 15-17th March
2011
Fulfilling our charter to strengthen PFM globally
See www.cipfa.org.uk/international