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Alejandro Amelivia

New perspectives on financial data reporting across different levels of government. Alejandro Amelivia. Head of e-government area. Ministry of Economy and Finance. Spain. THE SPANISH PUBLIC ADMINISTRATION FRAMEWORK. 17 Regional Governments. 2 Autonomous cities. 50 Provinces.

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Alejandro Amelivia

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

  2. THE SPANISH PUBLIC ADMINISTRATION FRAMEWORK 17 Regional Governments 2 Autonomous cities 50 Provinces 8.107 Local Agencies

  3. MUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATION

  4. 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).

  5. 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

  6. LOCAL BUDGET SETTLEMENT DATA REPORTS Potential units reporting their budget settlement: 8.110 local governments 1.615 organisms dependent on the administrative structure of the 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

  7. 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

  8. VIRTUAL OFFICE OF FINANCIAL COORDINATION WITH LOCAL AGENCIES

  9. VIRTUAL OFFICE: IMPROVING PROCESSES The virtual office was intended to be an open communication channel between MEH and local entities The communication is “full duplex” 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

  10. VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA CAPTUREWEBAPPLICATION

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

  12. A LEGAL DISPOSITION TO MODERNIZE DATA CAPTURE Order EHA/468/2007, February 22 Establishes general conditions and procedure for submitting Local Governments budget settlemens 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. LOCAL FINANCIAL DATA. FORMAT CONFLICTS Local agencies are free to use any application or database to manage and store their budgetary data • A standard interchange format was required. It should • be easy to use by all the local agencies • be able to store or display any kind of budgetary data • be flexible enough to fit any existing storing system So it had to be !

  14. 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

  15. THESE DISADVANTAGES CAN BE ELIMINATED The DGFCLA has considered XBRL as the best solution for an efficient financial data interchange, where so many organizations are involved • When using XBRL all the actors take some advantage • Public administrations • Audit and external control institutions • Universities • Banks • Analysts

  16. MODEL BASED ON XBRL. EFFICIENCY GAINS • The use of XBRL in local budget reporting provides: • Better information transparency • Less time to publish data • More quality on information • Costs reductions • Better G2G relationships among all the actors • Better G2A relationships

  17. LENLOC: DEPLOYMENT ESTRATEGY Developed by XBRL Spain and DGFCLA • Difficulties • Small L.A. have no resources • Different “Source” accounting applications • DGFCLA focused on Accounting Applications firms • 5 firms  90% Local Agencies • Opportunity to increase business • XBRL is recomended by Law

  18. LENLOC TAXONOMY

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

  20. LENLOC TAXONOMY LENLOC STRUCTURE (II) • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/2007-01-31 • Authority: Ministerio de Economía y Hacienda (meh) • Country: España • Report: Financiero (fr) • Account: GAAP • Legal References: • Orden Ministerial: 8 de Septiembre de 1999 • Orden EHA 466/2007 • Version Date: 2007-01-31 • Prefix: • Budget Settlement Schema: lenloc-liq • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-liq/2007-01-31 • Ordinary model Budget Settlement Schema: : lenloc-ord • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-ord/2007-01-31 • Simplify model Budget Settlement Schema: : lenloc-sim • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-sim/2007-01-31 • Common Elements in Simplify and Ordinary Budget Settlement Schema: : lenloc-com • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-com/2007-01-31 • Accounting Schema: lenloc-cta • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-cta/2007-01-31 • Functions Schema: lenloc-fun • Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-fun/2007-01-31

  21. LENLOC TAXONOMY LENLOC STRUCTURE (III) • Files: • lenloc-liq-2007-01-31.xsd • lenloc-ord-2007-01-31.xsd • lenloc-ord-2007-01-31-presentation.xml • lenloc-ord-2007-01-31-definition.xml • lenloc-ord-2007-01-31-label.xml • lenloc-ord-2007-01-31-reference.xml • lenloc-ord-2007-01-31-calculation.xml • lenloc-sim-2007-01-31.xsd • lenloc-sim-2007-01-31-presentation.xml • lenloc-sim-2007-01-31-definition.xml • lenloc-sim-2007-01-31-label.xml • lenloc-sim-2007-01-31-reference.xml • lenloc-sim-2007-01-31-calculation.xml • lenloc-com-2007-01-31.xsd • lenloc-com-2007-01-31-label.xml • lenloc-com-2007-01-31-reference.xml • lenloc-cta-2007-01-31.xsd • lenloc-cta-2007-01-31-presentation.xml • lenloc-cta-2007-01-31-definition.xml • lenloc-cta-2007-01-31-label.xml • lenloc-cta-2007-01-31-reference.xml • lenloc-fun-2007-01-31.xsd • lenloc-fun-2007-01-31-presentation.xml • lenloc-fun-2007-01-31-definition.xml • lenloc-fun-2007-01-31-label.xml • lenloc-fun-2007-01-31-reference.xml

  22. LENLOC TAXONOMY LENLOC STRUCTURE(IV) LENLOC imports the DGI taxonomy in order to identify local entities and their dependent organizations Two principal schemas: ordinary and simplified (lenloc-ord and lenloc-sim) depending on municipal population Two hypercubes or n-cubes of concepts regarding expenses, incomes and functions: accounts (lenlo-cta) and functions (lenloc-fun) A schema which collects the rest of the common concepts ( lenloc-com)

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

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

  25. 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

  26. LENLOC Results: Overall

  27. LENLOC RESULTS: Evolution ox XBRL senders and signatures

  28. 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

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

  30. 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

  31. Thanks for your attention Alejandro.amelivia@meh.es sgpesi@meh.es

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