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Public Finance and Budgeting

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Title: Public Finance and Budgeting


1
Public Finance and Budgeting
  • Miami ICGFM , May 11, 2006
  • Richard Bartholomew
  • OTA Senior Budget Advisor

2

AN OVERVIEW OF PUBLIC FINANCE THE BUDGET
3
Today Presentation
  • A brief look at the Public Finance System
  • The Budget Process
  • An Emphasis on Budget Execution
  • The PEFA Indicators
  • The Platform Approach
  • Questions and Discussion

4
What Happens When The Public Finance System
Malfunctions?
  • Corruption improper payments
  • Inflation the worst tax
  • Budget deficits and debt pile up

5
What Happens When The Public Finance System
Malfunctions?
  • Money gets spent but results are not seen
    damage to democracy and government credibility
  • Banking System bank manipulation or bad
    regulation can create serious problems

6
It is necessary to understand this system to work
effectively in it
7
  • The Public Finance System

MoFinance Macroeconomics, Budget, Treasury, Tax
and Debt
Executive/Council of Ministers
Taxpayers, Bondholders Lenders
Ministries/Chapters/Localities/Agencies
Supreme Audit Agency
External Partners WB, IMF, donors, peer groups
Parliament
Payments System
8
A Vehicle to Achieve Objectives
  • PFM can help move us from where we are to places
    we want to go
  • To better benefits and education for citizens
  • To economic competitiveness, growth and jobs
  • To more security in the streets or at the border
  • PFM is a sophisticated, powerful vehicle that
    must be professionally maintained and controlled

9
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10
PFM Task 1
  • Maintain aggregate fiscal discipline by
  • -Setting Spending Frameworks
  • -Establishing Fiscal Rules Controls

11
PFM Task 2
  • Allocate resources effectively, according to
    priorities, by
  • formulating the budget in a fair, stable and
    sustainable process that involves stakeholders

12
PFM Task 3
  • Gather, Maintain and Use resources efficiently by
  • - executing the budget in a way that does not
    waste money or time. Revenue collection is in
    this task.
  • Capital inventories are part of it.

13
Roles
  • Taxpayers,
  • Fee Payers,
  • Lenders and
  • Asset Purchasers
  • All provide the inputs, the fuel of Public
    Finance

14
Roles
  • Parliaments have the constitutional authority to
    provide public resources
  • Councils of Ministers and subordinated agencies
    hold Executive powers and manage public funds

15
Managers of Public Funds
  • Ministries, led by the Finance Ministry
  • Special bodies, such as procurement boards
  • Local governments
  • Government Sponsored Enterprises

16
Managing Public Funds
  • Schools and universities
  • Subordinate organizations such as public
    transport
  • Private vendors/contractors for state and donor
    projects (NGOs)

17
Payments Systems
  • Help collect revenues
  • Make payments during budget execution
  • Interact with other systems, especially banking

18
External Partners
  • International Financial Institutions (IFIs)
  • World Bank development loans/grants
  • IMF monetary stabilization and planning
  • Development Banks project financing
  • OECD shares advanced practices
  • Networks (ICGFM, SBOs)
  • Bi-lateral donors such as Japan, EU, The
    Netherlands, Britain and America

19
The Verification Role
  • Supreme Audit Agencies and Internal Auditors
    report on the ultimate use of resources can you
    define this in a more precise way?
  • Budgeters needs auditors!
  • Audits determine credibility

20
Program Budgets Need Auditors
  • Program budget systems
  • Require performance audits using non-financial
    data
  • Must validate indicators that measure results
  • Use continuing flows of audit information to
    analyze results and make allocation decisions
  • Rely on the expectation of audits to encourage
    spending organizations to submit truthful budget
    execution data

21
The Fiscal Facts of Life
  • Countries can only spend what they can collect
    through revenues and borrowing
  • They must manage these funds successfully

22
Finance of Ministry Functions
  • Revenue
  • Public Finance Policy
  • Budgeting
  • Macroeconomic Estimates
  • Internal Audit/Control

23
Finance Ministry Functions
  • Treasury management of accounts and payments
  • Debt Operations
  • Financial Institutions Regulation

24
Finance Ministry Budget Tasks
  1. Budget Formulation - ensuring allocation of funds
    according to priorities enacted in Parliament
    based on Executive preparation
  2. Budget Execution - conforming the use of
    resources to the enacted plan and making changes
  3. Systemic controls and accountability
  4. Analysis monitoring and internal challenge
  5. Information and Reporting for transparency and
    management

25
Budgeting
  • Focuses on PROCESS, as does Internal Audit
  • This is different from Debt Instruments and
    Treasury payments, which involve transactions

26
The Budget
  • The device that allocates the shortage of public
    money
  • There is never enough money to do all the things
    people want done.

27
The Budget
We use budgets to decide what is most important
and who gets what proportion, or share, of public
resources
28
Therefore
A budget should a priority list of
government actions and policies
29
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30
The Formulation Chart
  • This illustrates a complete, mature process
  • OTA suggests that you use it as a template to see
    how your system measures up
  • A detailed explanation can be found in the UST
    100 course found on our website

31
A Good Formulation Process
  • Starts with real macroeconomic and budget
    execution data
  • Operates within politically accepted limits
  • Relies extensively on analyses of financial and
    non-financial data
  • Has an established calendar and clear
    instructions/manuals/handbooks
  • Incorporates internal challenges, appeals and
    final decisions

32
Formulation
  • You can badly execute a well formulated budget
  • You cannot execute a badly formulated budget well

33
Budgeting for Results
  • OTA recommends program, or results based budgets
  • This is how we tell people what we are doing with
    their money

34
Program Budgets Take Time
  • Get political buy in do not waste the effort
  • Put the data/accounting fundamentals in place
    early
  • Start with outputs while you work on outcomes
  • Migrate from organization/economic classification
    to measurable objectives that drive real programs

35
Budget Execution
Formulation
Year end accounting
36
The Rail Track Analogy
  • Budgeting ALWAYS follows two tracks
  • Budget Formulation
  • and
  • Budget Execution

37
The Rail Track Analogy
  • Ties of budget law and policy, help execution to
    follow budget formulation.
  • Execution data ties guide formulation.

38
Destination SAI Report
  • The last stop on every budgets journey down
    these twin tracks is a final statement, the
    reconciliation of what was authorized to what has
    been spent and accomplished.

39
Budget Execution Stakeholders
  • Finance ministry unitsCentral Treasury
    ManagementBudget Internal controls and auditing

40
Finance Ministry Execution Stakeholders
  • Cash and Debt Managers
  • Revenue Units
  • Capital Investment Programmers
  • Grant Management Unit

41
Spending Ministry Execution Stakeholders
  • Departments or sections which perform the
    following functions
  • Treasury transactionsBudgetingRevenue
    collectionCapital Programs and Projects

42
Spending Ministry Stakeholders
  • Human resources/payroll
  • Procurement officers
  • Internal audit and other controls
  • Grant Management

43
Other Budget Execution Stakeholders
  • Citizens, companies and organizations
  • Audit Institutions
  • The Council or Cabinet of Ministers
  • Parliament
  • Planning and analysis units

44
Other Budget Execution Stakeholders
  • The Central Bank
  • The banking community
  • Credit rating organizations
  • International Financial Institutions (IFIs-
    World Bank and International Monetary Fund) and
    Donors

45
Budget Execution Duties
  • a. carefully managing daily financial
    operationsb. accounting under clear rules and
    controls

46
Budget Execution Duties
  • c. maintaining a record of historical and
    comparative data and
  • d. auditing, analyzing and evaluating the
    financial performance and results of government
    policies, spending and programs

47
Major Treasury Unit Duties
  • Cash management.
  • Management of bank accounts.
  • Accounting and reporting.
  • Planning and forecasting of cash flows.

48
Treasury Unit Duties
  • Management of debt and guarantees.
  • Administration of grants and counterpart funds
    from international aid.
  • Financial assets management.

49
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50
Cash Management
  • NOT cash rationing! Does not pay bills on an ad
    hoc, day to day decision basis.
  • Relies on continuous communication, good data and
    established rules
  • Uses multiple tools
  • Experience-based scheduling
  • Short term borrowing
  • Commitment System

51
Cash Management Activities
  • a. controlling aggregate spending b.
    effectively implementing the budget by insuring
    that adequate cash is available to pay
    liabilities and prevent arrears c.
    concentrating available funds to earn interest
    and, therefore d. minimizing costs of public
    borrowing.

52
More Treasury Responsibilities
  • Maintaining the Chart of Accounts
  • Setting budget accounting standards
  • Developing budget accounting laws, regulations,
    policies, and procedures

53
More Treasury Responsibilities
  • Reporting on results of the governments budget
    execution and
  • Preparing statutorily or contractually required
    financial and non-financial reports (e.g. for
    donor funds)
  • Others you could suggest?

54
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55
Chart of Accounts
  • The General Ledger Those accounts representing
    the highest level of summarization for assets,
    liabilities, equity, revenues, and expenditures
    of the state. These are the accounts that will be
    the basis for the annual financial statements.
  • Functional Classification The broad area of
    government activity, often defined by the
    international GFS system endorsed by the
    International Monetary Fund. GFS compatible
    functional classifications are used for
    international reports.

56
Chart of Accounts 2
  • Economic Classification Shows what is being
    acquired/paid for with budget resources. Examples
    include Employee pay, Employer Benefit/Social
    Insurance costs, Goods and Services such as
    travel, and interest payments.

57
Chart of Accounts 3
  • Revenues Taxes, fees, and other receipts that
    finance the governments operations.
  • Organizations shows what governmental entity is
    responsible for expenditures or revenue items.
    Examples might be the education ministry or a
    special investigations office.

58
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59
The PFM System Should Use ANY Desired
Classifications
  • Location
  • New spending vs. existing
  • Beneficiary groups (retirees, students)
  • Combinations of other classifications, such as
    sectoral classification
  • Source of funds (internal, donor)
  • Level of Government
  • Your suggestions?

60
More Classifications
  • One-time or ongoing (projects or programs)
  • Capital or recurrent
  • Risk (high, medium, low danger of failure)
  • Government Priority Items
  • Decision options (grouping by variables)

61
The Power to Classify
  • Determines how we think about Public Finance
  • Defines Transparency
  • Enables Reform
  • Intergovernmental equity needs jurisdictional
    data
  • Manipulates debate
  • Do I argue for money by organization or function?
  • Limits concepts
  • Example without program classification, we
    cannot see results. All other classifications
    show inputs.

62
Classification and the Useful IFMIS
  • Can the system accommodate current
    classifications for budget formulation and
    execution?
  • Can the system add classifications when desired
    by the users?
  • Can the system manipulate all classifications for
    analysis?
  • Example ability to compare and modify
    classifications at various time points

63
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64
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65
Execution Manuals (Policies and Procedures) 1
  • Accounting
  • Reporting
  • Chart of Accounts
  • Capital Assets
  • Procurement

66
Execution Manuals (Policies and Procedures) 2
  • Donor funds
  • Payroll
  • Internal controls and audit
  • Glossary of terms

67
Internal Control Objectives
  • It is every stakeholders duty to follow
    procedures to assure
  • Effectiveness and efficiency of operation (e.g.
    payment processing time)
  • Reduction of Risk (e.g. securing assets)

68
Internal Control Objectives
  • Prevention of Corruption (e.g. dual signatures)
  • Reliability of financial reporting (e.g.
    professional verification techniques)
  • Compliance with applicable laws and regulations
    (e.g. release of funds requirements observed)

69
Execution Sequencing
  1. Allocation Plans
  2. Commitments for contracted goods or services
  3. Authorization to spend
  4. Disbursements and Procurement
  5. Reconciliation and Accounting
  6. Reporting and Analyzing

70
Accounting
  • Cash
  • Accrual
  • What do you prefer?
  • GFS 2001 Compatibility but not an accounting
    system
  • IPSAS Compliance

71
Sample Cash Controls
  • Segregation of duties in the handling of cash is
    one of the most effective ways to gain control
    over this asset. No one individual is to have
    complete control over cash.
  • Incoming cash must be made a matter of record as
    soon as possible. Two persons should open the
    mail when they expect cash or checks in the mail.
  • One copy of the listing is forwarded to the
    cashier. The other copy forms the basis for
    accounting controls through ledger posting. A
    third person periodically compares the listing
    with the deposit.

72
Payroll Controls
  • Census of Employees (remove phantoms)
  • Position controls to prevent unauthorized hiring
  • Signed Time sheets

73
Payroll Controls
  • Responsible, accountable supervisors
  • Full Time Equivalent or Head Count?
  • Cash payments or bank deposits?

74
PEFA
  • The Public Expenditure and Financial
    Accountability project of the major donors

75
Applying PEFA Indicators
  • The Performance Measurement Framework -PMF

76
The OECD-DAC Task Force on Donor Practices
provided guidance on diagnostic reviews and
performance measurement and suggested
  1. Reducing duplication in assessments and high
    transaction costs on partner countries
  2. Establishing a performance measurement framework
    to monitor progress over time in PFM systems

A Public Expenditure Working Group was set up in
July 2003, chaired by the World Bank, with Fund
and PEFA Secretariat representation, reporting to
the PEFA Steering Committee
77
  1. Greater country ownership, and alignment of donor
    work around country priorities
  2. Reduced transaction costs from streamlining
    diagnostics
  3. Enhanced collaboration between donors,
    governments, and stakeholders
  4. Better meeting of both development and fiduciary
    concerns

Improved impact on the reform of country systems
78
The PFM High-Level Performance Indicator Set 1
A. PFM-OUT-TURNS Credibility of the budget
PI-1 Aggregate expenditure out-turn compared to original approved budget
PI-2 Composition of expenditure out-turn compared to original approved budget
PI-3 Aggregate revenue out-turn compared to original approved budget
PI-4 Stock and monitoring of expenditure payment arrears
B. KEY CROSS-CUTTING ISSUES Comprehensiveness and Transparency
PI-5 Classification of the budget
PI-6 Comprehensiveness of information included in budget documentation
PI-7 Extent of unreported government operations
PI-8 Transparency of inter-governmental fiscal relations
PI-9 Oversight of aggregate fiscal risk from other public sector entities.
PI-10 Public access to key fiscal information
79
The PFM High-Level Performance Indicator Set 2
C. BUDGET CYCLE
C(i) Policy-Based Budgeting
PI-11 Orderliness and participation in the annual budget process
PI-12 Multi-year perspective in fiscal planning, expenditure policy and budgeting
C(ii) Predictability and Control in Budget Execution
PI-13 Transparency of taxpayer obligations and liabilities
PI-14 Effectiveness of measures for taxpayer registration and tax assessment
PI-15 Effectiveness in collection of tax payments
PI-16 Predictability in the availability of funds for commitment of expenditures
PI-17 Recording and management of cash balances, debt and guarantees
PI-18 Effectiveness of payroll controls
PI-19 Competition, value for money and controls in procurement
PI-20 Effectiveness of internal controls for non-salary expenditure and assets management
PI-21 Effectiveness of internal audit
80
The PFM High-Level Performance Indicator Set 3
C(iii) Accounting, Recording and Reporting
PI-22 Timeliness and regularity of accounts reconciliation
PI-23 Availability of information on resources received by service delivery units
PI-24 Quality and timeliness of in-year budget reports
PI-25 Quality and timeliness of annual financial statements
C(iv) External Scrutiny and Audit
PI-26 Scope, nature and follow-up of external audit
PI-27 Legislative scrutiny of the annual budget law
PI-28 Legislative scrutiny of external audit reports
81
The PFM High-Level Performance Indicator Set 4
D. DONOR PRACTICES
D-1 Predictability of Direct Budget Support
D-2 Financial information provided by donors for budgeting and reporting on project and program aid
D-3 Proportion of aid that is managed by use of national procedures
82
Todays PEFA Discussion
  • Consider possible applications
  • Explore pitfalls
  • Relate to reform programs
  • Note the Platform Approach

83
Indicators Are For Country Use
  • Straightforward and credible
  • Good job for a special assistant
  • But ratings must be reviewed/discussed
  • Provides immediate insights
  • Auditors are suited to this task

84
PMF For Country Use
  • A measure of change over
  • time milestones marks
  • A tool for interaction with donors
  • that can prove progress
  • The basis for a Platform Approach

85
The platform approach is currently being
implemented in a number of countries, supported
by development agencies. In Cambodia, for
example, this approach is led by government and
supported by a joint donor group. There is an 8
year plan to move through the platforms.
86
Why Platforms?
  • Reforms are often led by different agencies and
    donors, with insufficient attention provided to
    the co-ordination and sequencing.
  • This has typically led to a fragmented and
    partial approach, characterized by
  • an undermining of government-led reform
  • less trust between governments and donors
  • administrative burdens on government

87
Fragmented Approaches
  • too much focus on technical developments (e.g.
    complex IFMIS)
  • a tendency to promote parallel systems
  • implementation of reforms frequently fails to
    complement each other
  • an inconsistent approach to PFM reform between
    line ministries and the Ministry of Finance and
    the SAI

88
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89
Cambodia Platform 1 A credible budget delivering
reliable and predictable resources to
budgetmanagers
  • Broad Activities
  • Integration of budget (recurrent capital
    budgets)
  • Strengthen macro and revenue forecasting
  • Streamline spending processes

90
Enables a basis for accountability
91
Cambodia Platform 2 Improved internal control to
hold managers accountable
  • Broad Activities
  • Re-design budgeting classification system
  • Initial design of FMIS for core business
    processes
  • Define the internal audit function

92
Enables focus on what is done with money
93
Cambodia Platform 3 Improved linkage of
priorities and service targets to budget planning
and execution
  • Broad Activities
  • Re-design the budget cycle (e.g. MTEF)
  • Pilot program-based budgeting budget analysis
  • Further fiscal decentralization

94
Enables more accountability for performance
management
95
Cambodia Platform 4 Integration of
accountability and review processes for both
finance and performance management
  • Broad Activities
  • Full design of FMIS
  • Develop IT management strategy
  • Initial design of asset register

96
Do Not Wait For Donors
  • Learn the PEFA system now
  • Identify strengths/weaknesses
  • Create plans to raise ratings
  • Divide TA among donors based on sequenced action
    plans

97
Target Selected Indicators
  • Decide what is critical AND doable
  • Set practical steps
  • and timeframes

98
Good Target Indicators
  • 1 3 Aggregate out-turn vs. enacted- 1st step in
    deficit control
  • 2 Composition of out-turn vs. enacted ---can
    highlight budget execution quality and policy
    strategies
  • 4 Arrears often elusive, always important to
    budget credibility

99
Good Targets
  • 7 Off Budget spending an issue in most
    countries can be a political power indicator
  • 10 Public access can be done with websites,
    publications and public activities. Good for an
    early win.

100
Good Targets
  • 11 Annual budget process
  • 18 Payroll controls one place to start the
    fight against corruption

101
Good Targets
  • 16 Availability of funds a key budget execution
    improvement opportunity
  • 21 Effectiveness of internal audit
  • 24 Budget reporting a practical test for the
    IFMIS, or existing systems

102
Example
  • PI-21. Effectiveness of internal audit
  • Dimensions to be assessed
  • (i) Coverage and quality of the internal audit
    function.
  • (ii) Frequency and distribution of reports.
  • (iii) Extent of management response to internal
    audit findings.

103
Internal Audit Rate Your System
104
Internal Audit Effectiveness
  • Grade D
  • (i) There is little or no internal audit focused
    on systems monitoring.
  • (ii) Reports are either non-existent or very
    irregular.
  • (iii) Internal audit recommendations are usually
    ignored (with few exceptions).

105
Effectiveness
  • Grade C
  • (i) The function is operational for at least the
    most important central government entities and
    undertakes some systems review (at least 20 of
    staff time), but may not meet recognized
    professional standards.
  • (ii) Reports are issued regularly for most
    government entities, but may not be submitted to
    the ministry of finance and the SAI.
  • (iii) A fair degree of action taken by many
    managers on major issues but often with delay

106
Internal Audit Effectiveness
  • Grade B
  • (i) Internal audit is operational for the
    majority of central government entities (measured
    by value of revenue/expenditure), and
    substantially meet professional standards. It is
    focused on systemic issues (at least 50 of staff
    time).
  • (ii) Reports are issued regularly for most
    audited entities are distributed to the audited
    entity, the ministry of finance and the SAI.
  • (iii) Prompt and comprehensive action is taken by
    many (but not all) managers.

107
Internal Audit
  • Grade A
  • (i) Internal audit is operational for all central
    government entities, and generally meet
    professional standards, It is focused on systemic
    issues (at least 50 of staff time)..
  • (ii) Reports adhere to a fixed schedule and are
    distributed to the audited entity, ministry of
    finance and the SAI.
  • (iii) Action by management on audit findings is
    prompt and comprehensive across government
    entities.

108
Problems with PEFA
  • Consultants with opinions
  • Differences in scoring or data- weaknesses can
    cause problems of appearance substance
  • Extra work required
  • Inadequate for major anti-corruption efforts
  • Donor add-on requirements

109
PEFA-based Reform Plans
  • Specify indicator (s) for improvement
  • Set a timetable for change
  • Report monthly on milestones and manage setbacks

110
Example
  • Goal Improve the stability of the budget process
    through improved procedures/circulars
  • Objective
  • Improve the BY07 Circular to raise Indicator 11
    (policy based budget orderliness and
    participation)

111
11 Budget Circular
  • Dimension (i) the Calendar (no change targeted)
  • Score B
  • A clear annual budget calendar exists, but some
    delays are often experienced in its
    implementation.
  • The calendar allows units reasonable time (at
    least four weeks from receipt of the budget
    circular) so that most of them are able to
    meaningfully complete their detailed estimates on
    time
  • .

112
11 Example
  • (iii) Timely approval by the legislature (no
    change needed)
  • Score A The legislature has, during the last
    three years, approved the budget before the start
    of the fiscal year.

113
Improvement Plan Target
  • Dimension (ii) preparation of budget submissions
  • Current Score D
  • the quality of the budget circular
    (instructions) is poor, causing confusion about
    requirements and late submissions of requests

114
Target
  • Desired Score B
  • A comprehensive and clear budget circular is
    issued which reflects ceilings approved by
    Cabinet (or equivalent).
  • Ceiling approval takes place after the circular
    distribution to units, but before they have
    completed their submission.

115
Plan Milestones
  1. Agree on concept Nov, 06
  2. Inform spending units - Nov, 06
  3. Draft the changes-Dec-Jan, 06-7
  4. Gain cabinet approval for draft- Jan, 07
  5. Training as needed- Feb, 07
  6. Distribute Final Circular- March 15, 2007
  7. Cabinet sets ceilings- April 15, 2007
  8. Requests submitted June 2007

116
What do you think?
  • At what point might the plan schedule most likely
    break down?
  • Drafting and Training time adequate?
  • Reasonable target score?
  • Unrealistic time frame for this change?

117
Other Potential Complications
  • Possible disagreement with donors on the quality
    of a new or old budget circular
  • Failure of Cabinet to give timely ceilings
    (results in a C rating)
  • Your observations?

118
Rating Change
  • Country score for 11 goes from ADB B rating
  • to ABB B
  • According to the PMF, policy based budgeting has
    advanced

119
Advances Country PFM Goals
  • 1.     Transparency
  • 2.     Accountability and Credibility
  • 3.     Stability and Sustainability

120
Recommendation
  1. Do your own PEFA Review
  2. Set a PEFA focus for your planned changes/reforms
  3. Get measurable results

121
Further Information
  • Websites www.ustreasury.hu/budget/frm.shtml
  • www.ustreasury.hu
  • Email bartholomewr_at_gmail.com

122
Remember
  • Public Finance Management impacts every citizen
    and public organization
  • PFM requires collaboration
  • PFM Change occurs through personal, technical
    and political processes

123
Two Sides to the PFM Reform Coin
  • The design, training and technical assistance
    face
  • The management of people face
  • These two aspects must be considered for any
    reform activity to succeed.

124
Change Management
  • Leaders want change but people and organizations
    resist it.
  • Why? We are not sure how it will affect us and
    what our work will be like after the change is
    made. Uncertainty breeds resistance.
  • Systems do not work or fail people make
    them work or allow them to fail

125
Reactions Anger Fear
  • Those who are corrupt are angry that someone is
    trying to expose them.
  • Those who are honest worry that someone intends
    to take away their work and security.

126
The Faces of Change
127
Responses to Change 1
  • Denial
  • This cannot work in our country because
  • This only works in other countries.
  • We cannot get political support for such an idea
    because.

128
Denial
  • We do not have the technical expertise/staff
    capacity/etc. to do this
  • There are many other things that we must do that
    are more important
  • We agree that this is a good idea and we intend
    to begin, but only when the time is right

129
Response 2
  • Bargaining
  • Ok, we will do it, but lets move slowly
  • It would be better to do it this way than that
    way
  • Lets study this thoroughly before taking the
    next steps. Appoint a study committee!

130
Response 3
  • Depression
  • It has happened.
  • There is no going back.
  • We could not stop it.
  • BUT, this shows that the leaders of change are
    succeeding.

131
Response 4
  • Acceptance
  • The change becomes the new old way and develops
    many defenders

132
Are you trying to change PFM?
  • Economic Forecasting?
  • Budget Formulation?
  • Accounting Standards?
  • Procurement?
  • Information Systems?
  • How do you plan to deal with the human side of
    change?
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