|Modernizing public financial management.|
|COMPANY||SOLUTIONS||PRODUCTS||CUSTOMERS||SERVICES||PARTNERS||NEWS & EVENTS|
News & Events
FreeBalance Government Resource Planning (GRP) Software Enabling Substantial Public Financial Management (PFM) Reform
World Bank report shows that post-conflict governments using the FreeBalance Accountability Suite have witnessed better PFM reform than those that do not
Ottawa, Canada (July 30, 2012) – FreeBalance, a For Profit Social Enterprise (FOPSE) software company that helps governments around the world to leverage robust Government Resource Planning (GRP) technology to accelerate country growth, is pleased to announce that the governments of Afghanistan, Kosovo, Sierra Leone and the West Bank recently received a rating of “substantial” for public financial management (PFM) reform. The World Bank report, Public Financial Management Reforms in Post-Conflict Countries: Synthesis Report, published earlier this month examined PFM reform in eight post-conflict countries.
The Synthesis Report provides no endorsement for the FreeBalance Accountability Suite or FreeBalance GRP implementation practices. Progress was analyzed in Afghanistan, Cambodia, Democratic Republic of the Congo, Kosovo, Liberia, Sierra Leone, Tajikistan and West Bank and Gaza. Afghanistan, Kosovo, Sierra Leone and West Bank and Gaza were rated as having substantial PFM reform. Afghanistan, Kosovo and Sierra Leone governments run the FreeBalance Accountability Suite at the national and sub-national levels. The FreeBalance Accountability Suite is implemented at municipalities within the West Bank. The Government of Liberia, rated as having “intermediate” progress, went live with the FreeBalance Accountability Suite last July. There are no FreeBalance implemenations in Cambodia, Democratic Republic of the Congo or Tajikistan.
The rapid implementation of a Financial Management Information System (FMIS) was considered in the Synthesis Report to enable PFM reform. The FreeBalance Accountability Suite provides government-specific FMIS functionality. The Synthesis report suggested that the introduction “of a FMIS as experienced in Afghanistan, Kosovo, Liberia, and Sierra Leone“ was a factor for PFM reform success. “We are happy to have contributed to improved governance in countries around the world,” said Manuel Pietra, FreeBalance President and CEO. “Technology can be a governance enabler and we are pleased to augment the efforts of public financial professionals to improve government effectiveness.” The Syntheis Report found a correlation between PFM reform success and improved World Bank Government Effectiveness ratings.
Human capacity and the level of development was found not to be a predictor of PFM reform success. Many of the least developed countries have shown significant improvement in Public Expenditure and Financial Accountability (PEFA) assessments when compared to more developed countries. The Synthesis Report found concluded that “budget execution reforms tend to be more successful, while some rethinking of reform approaches targeting budget planning on the one hand, and control and accountability on the other hand may be needed.”
The FreeBalance Accountability Suite has been implemented in post-conflict, developing, emerging economies and G7 countries. “Our success in post-conflict countries shows how we are able to sustainably support governance reform under the most challenging conditions,” said Doug Hadden, FreeBalance Vice President of Products. “The development of government-specific product architecture and implementation practices are as critical for success in Afghanistan as it is in Canada.”