The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia

The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia

Public financial management enables government to implement policy. Financial management information systems are a central element of PFM in that they facilitate government financial transactions and subject them to rigorous budgetary controls. The...

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Main Authors: Hashim, Ali, Piatti-Funfkirchen, Moritz, Cole, Winston, Naqvi, Ammar, Minallah, Akmal, Prathna, Maun, So, Sokbunthoeun
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
GOVERNANCE
PUBLIC SECTOR MANAGEMENT
PUBLIC FINANCE
FISCAL CONTROL
PUBLIC FINANCIAL MANAGEMENT
PUBLIC EXPENDITURE
MANAGEMENT INFORMATION SYSTEM
FINANCIAL MANAGEMENT INFORMATION SYSTEM
FMIS
Online Access:http://documents.worldbank.org/curated/en/226121546531748578/The-Use-of-Data-Analytics-Techniques-to-Assess-the-Functioning-of-a-Governments-Financial-Management-Information-System-An-Application-to-Pakistan-and-Cambodia
http://hdl.handle.net/10986/31092
id okr-10986-31092
recordtype oai_dc
spelling okr-10986-310922022-09-19T00:15:57Z The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia Hashim, Ali Piatti-Funfkirchen, Moritz Cole, Winston Naqvi, Ammar Minallah, Akmal Prathna, Maun So, Sokbunthoeun GOVERNANCE PUBLIC SECTOR MANAGEMENT PUBLIC FINANCE FISCAL CONTROL PUBLIC FINANCIAL MANAGEMENT PUBLIC EXPENDITURE MANAGEMENT INFORMATION SYSTEM FINANCIAL MANAGEMENT INFORMATION SYSTEM FMIS Public financial management enables government to implement policy. Financial management information systems are a central element of PFM in that they facilitate government financial transactions and subject them to rigorous budgetary controls. Therefore, the adequate use of FMIS systems supports the implementation of fiscal rules and provides the basis for holding the executive accountable for implementing the budget. Yet, the integrity of expenditure transactions and effectiveness of budget controls is rarely assessed. This paper explores the meaning of adequate use of FMIS systems and points to data analytics techniques that can shed light on how the use FMIS systems affects expenditure data integrity and effectiveness of budget controls. This methodology is applied to Pakistan and Cambodia, which reveals two very different problems. In Pakistan the analysis of the transactions profile suggests that a large share of the budget is not subjected to FMIS internal controls. In Cambodia the majority of the budget is channeled through the system, but the method exposes very large advances to commercial bank accounts that are subsequently drawn upon but outside the system. Both of these raise concerns about the effectiveness of the FMIS system. Deploying data analytics techniques can help assess whether FMIS systems serve form or function. Judging a system by its use is informative about governments' revealed preferences in expenditure management. This paper puts the spotlight on the foundation of expenditure data and advocates for a transparent, methodical and evidenced based approach to FMIS deployment and expenditure management reform. 2019-01-03T17:32:15Z 2019-01-03T17:32:15Z 2019-01 Working Paper http://documents.worldbank.org/curated/en/226121546531748578/The-Use-of-Data-Analytics-Techniques-to-Assess-the-Functioning-of-a-Governments-Financial-Management-Information-System-An-Application-to-Pakistan-and-Cambodia http://hdl.handle.net/10986/31092 English Policy Research Working Paper;No. 8689 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean South Asia Colombia Pakistan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic GOVERNANCE
PUBLIC SECTOR MANAGEMENT
PUBLIC FINANCE
FISCAL CONTROL
PUBLIC FINANCIAL MANAGEMENT
PUBLIC EXPENDITURE
MANAGEMENT INFORMATION SYSTEM
FINANCIAL MANAGEMENT INFORMATION SYSTEM
FMIS
spellingShingle GOVERNANCE
PUBLIC SECTOR MANAGEMENT
PUBLIC FINANCE
FISCAL CONTROL
PUBLIC FINANCIAL MANAGEMENT
PUBLIC EXPENDITURE
MANAGEMENT INFORMATION SYSTEM
FINANCIAL MANAGEMENT INFORMATION SYSTEM
FMIS
Hashim, Ali
Piatti-Funfkirchen, Moritz
Cole, Winston
Naqvi, Ammar
Minallah, Akmal
Prathna, Maun
So, Sokbunthoeun
The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
geographic_facet Latin America & Caribbean
South Asia
Colombia
Pakistan
relation Policy Research Working Paper;No. 8689
description Public financial management enables government to implement policy. Financial management information systems are a central element of PFM in that they facilitate government financial transactions and subject them to rigorous budgetary controls. Therefore, the adequate use of FMIS systems supports the implementation of fiscal rules and provides the basis for holding the executive accountable for implementing the budget. Yet, the integrity of expenditure transactions and effectiveness of budget controls is rarely assessed. This paper explores the meaning of adequate use of FMIS systems and points to data analytics techniques that can shed light on how the use FMIS systems affects expenditure data integrity and effectiveness of budget controls. This methodology is applied to Pakistan and Cambodia, which reveals two very different problems. In Pakistan the analysis of the transactions profile suggests that a large share of the budget is not subjected to FMIS internal controls. In Cambodia the majority of the budget is channeled through the system, but the method exposes very large advances to commercial bank accounts that are subsequently drawn upon but outside the system. Both of these raise concerns about the effectiveness of the FMIS system. Deploying data analytics techniques can help assess whether FMIS systems serve form or function. Judging a system by its use is informative about governments' revealed preferences in expenditure management. This paper puts the spotlight on the foundation of expenditure data and advocates for a transparent, methodical and evidenced based approach to FMIS deployment and expenditure management reform.
format Working Paper
author Hashim, Ali
Piatti-Funfkirchen, Moritz
Cole, Winston
Naqvi, Ammar
Minallah, Akmal
Prathna, Maun
So, Sokbunthoeun
author_facet Hashim, Ali
Piatti-Funfkirchen, Moritz
Cole, Winston
Naqvi, Ammar
Minallah, Akmal
Prathna, Maun
So, Sokbunthoeun
author_sort Hashim, Ali
title The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
title_short The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
title_full The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
title_fullStr The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
title_full_unstemmed The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
title_sort use of data analytics techniques to assess the functioning of a government's financial management information system : an application to pakistan and cambodia
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/226121546531748578/The-Use-of-Data-Analytics-Techniques-to-Assess-the-Functioning-of-a-Governments-Financial-Management-Information-System-An-Application-to-Pakistan-and-Cambodia
http://hdl.handle.net/10986/31092
_version_ 1764473595043512320

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