Financial Management & Accountability

The effectiveness, efficiency and international competitiveness of a developing country’s economy increasingly is related to improvements in the management of both private sector enterprises and public sector institutions.  As investors demand greater corporate transparency, and both citizens and the donor community expect more effective public financial management and transparency, improved fiscal, financial and managerial processes become a prerequisite for sustainable economic development.  The IBTCI Financial Management and Accountability Practice (FinMAP) provides expert consulting and training services to assist public and private sector clients in solving important financial/fiscal management and governance issues they face and establishing effective and efficient management and governance processes. IBTCI has assembled extensive personnel, research, and program delivery capability in the following three thematic areas:

  • Financial Management
  • Governance and Accountability
  • Fiscal Reform

Financial Management

The Financial Management sub-practice of IBTCI’s FinMAP provides technical assistance and training in the following general thematic areas:

  • Accounting Standards Adoption and Implementation
  • Audit Standards Adoption and Implementation
  • National Standards Setting and Enforcement
  • Financial Regulatory Oversight
  • FMIS Effectiveness and Efficiency Evaluation and Improvement
  • Financial/Fiscal Agent Services
  • Curriculum Reform

IBTCI is expert in enterprise accounting reform where we assist in the generation and reporting of best-practice financial and managerial information to promote greater investor confidence in business resulting in increased domestic and foreign investment. IBTCI provides services to government institutions for both policy development and for the institutionalization of accounting standards according to international practice.  Across the globe, IBTCI has been at the forefront in the development and adoption of globally accepted professional practices. We have developed a robust model for a comprehensive program of accounting and audit reform, effective professional certification regimes, and professional training programs. Our model can promote national standards in conformance with international standards and develop effective, efficient, fair and balanced national oversight and enforcement capability.  In particular, IBTCI has experience and expertise in assisting in the development of professional accountancy associations, and professional oversight/regulatory bodies.

Governance and Accountability

The Governance and Accountability sub-practice of IBTCI’s FinMAP provides technical assistance and training in the following general thematic areas:

  • Decisional Decentralization
  • Policy Oversight
  • Fiduciary Safeguards (Effective Internal Controls, Reporting, Oversight)
  • Procurement Reform
  • Strengthening Public Sector Audit Institutions (SAIs and Internal Audit) Performance Audits
  • Transparency Improvement
  • Anti-corruption Strengthening
  • Civil Service Reform/Professionalization

There are several key ingredients for ensuring good corporate governance, minimizing public corruption, and preventing fraud, waste and abuse. The following key ingredients must be present: effective internal controls, operational and financial responsibility and accountability, transparency and reporting, adequate supervision, appropriate independent audit, dependable enforcement, and effective governance or external oversight. IBTCI provides expertise in designing hierarchical organizations where responsibility and accountability for policies, processes and activities are pushed down to the most effective level of an organization. We provide advice in developing effective and efficient oversight mechanisms for both operational and financial policies. IBTCI assesses fiduciary safeguards that organizations have developed and provides recommendations for their strengthening. We provide policy and operational assistance in reforming procurements to ensure that they are fair, efficient, and effective. We assist governments and other organizations in developing appropriate audit policies and processes, and other performance assessment services, based on cost-benefit, risk, and legal and societal requirements. IBTCI provides expert advice to its clients on improving transparency to meet counterparty needs and oversight/regulatory requirements. IBTCI actively participates in anti-corruption initiatives with an emphasis on technical, regulatory and training programs. Our governance and accountability services support the development of financial management and control regimes, accounting and audit improvements, and educational efforts geared to strengthen public services and inform the public about the detrimental consequences of poor governance and low accountability.  IBTCI has been a leader in providing highly valued assistance to strengthen SAIs and internal audit organizations.  Additionally, IBTCI has been in the forefront of developing the capacity of SAIs to undertake performance audits and has helped SAIs achieve tremendous impacts through these types of audits.  In recent years, as the scope of anti-corruption and corporate sector accountability projects expanded, IBTCI has enhanced its services in governance and accountability, building on its varied FinMAP experiences and expertise to develop a flexible analytical approach to increasingly complex and interrelated governance issues.

Fiscal Reform

The Fiscal Reform sub-practice of IBTCI’s FinMAP provides technical assistance and training in the following general thematic areas:

  • Budgeting and Expenditure Control
  • Expenditure Policy
  • Tax Policy and Revenue Administration
  • Debt Policy and Borrowing
  • Fiscal Monitoring (GFSM 2001 & ESA 95)
  • Fiscal Decentralization and Inter-Governmental Finance
  • Other issues related to governmental financial systems, e-government and economic governance

It is increasingly acknowledged that building a sustainable fiscal position is a pre-requisite for improving an economy. To be most effective, fiscal reform must address both sides of the equation – revenues and expenditures. On the revenue side tax policy and tax administration must be improved. Similarly, expenditure policy and expenditure administration must be made more effective and efficient. IBTCI assists organizations in developing countries and transition economies to improve revenue and expenditure/cost control processes.  We help finance ministries and economic ministries develop the internal budgetary processes and establish regulatory oversight to promote more effective fiscal and financial management in their country.  IBTCI provides expertise to establish greater expenditure accountability by strengthening expenditure policies and processes. IBTCI provides expertise and experience in developing fiscal policies for both revenue and expenditure improvement. We assist governments in projecting cash flows and determining borrowing needs, and in setting debt policies for all levels of government and associated organizations. IBTCI experts train professional personnel in the adoption, implementation, and practical application of international fiscal data standards and best practices. We assist national governments in determining the political, legal, fiscal, financial, and regulatory balance that will provide the benefits of decentralization whilst minimizing the costs and risks to each level of government and the citizenry as a whole.  IBTCI consultants have been instrumental in creating the informational and managerial control infrastructure essential for organizations to ensure that: resources are adequately protected; resources are acquired economically and used efficiently and effectively; and the organization’s plans, goals, and objectives are achieved.