The Association of Chartered Certified Accountants and the International Federation of Accountants released a joint
PFM reforms are government-implemented attempts to improve the accountability, transparency, governance and integrity of revenues and spending. However, ACCA and IFAC argue that many reforms didn't put enough emphasis on people and capabilities.
"Professionalization brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny," said newly elected ACCA president Joseph Owolabi, in a statement. "A professionalized workforce within a finance function supplies more than accounting information. They bring wide value to public sector finances — providing improved revenue collection, effective budgetary controls and the data required to support policy decision making."
The report provides a definition of professionalization, describes how entities can benefit from it and offers a roadmap to support high-quality global practice in professionalization.
It says that individuals, governments and the economy could greatly benefit from professionalization. Economies can enjoy greater financial credibility, governments can improve financial management discipline across their departments, and individuals can access more networking and training opportunities. The report also explains that the path to professionalization requires political will and a strong commitment from legislative and regulatory structures. Then, the entities involved must promote the adoption and implementation of complex policies before developing collective plans of action.
"We are looking to rebalance the focus so that it is not only on the process but also on the people," said IFAC CEO Kevin Dancey in a press release. "The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgment and ethical behavior of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness of PFM, and reinforce trust in public services and spending."
The report includes case studies of good practices from Tanzania, the U.K., Cyprus, the Philippines, Pakistan, Malaysia and Wales. For example, the Philippines developed a PFM Competency Model for government finance professionals to discuss budgeting, accounting, procurement, auditing and cash management in 2013, and the report uses the initiative as an example of a good skills gap analysis.
"Political leadership and commitment for professionalization is the most important factor for sustaining PFM reforms over time," said Alex Metcalfe, ACCA's head of public sector, in a statement. "In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalize public finance staff and provide opportunities for training for professional qualifications."
