Presentation of Results of the Regional Study on Public Financial Management

Montevideo, September 25, 2024. 

Through the study, it was possible to identify and understand the maturity level of FOCAL member countries in the process of implementing technology and innovative solutions for PFM. 

The 10th Forum of Government Accounting Offices of Latin America (FOCAL) took place in San Salvador, El Salvador, on September 24, 25, and 26, 2024. This event focuses on promoting cooperation among member countries through their government accounting bodies to exchange experiences on common areas of interest and strengthen their capacities in accounting, budget execution, and economic and financial information, contributing to transparency and accountability in the region. 

This annual meeting, organized by the Forum of Government Accounting Offices of Latin America (FOCAL), brings together the highest governmental authorities from the region’s countries and representatives from organizations such as the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), Inter-American Development Bank (IDB), World Bank, among other related organizations and entities.

This edition featured several speakers who addressed discussions on strategies and international cooperation alliances for generating reports on the SDGs, the transformations and prospects of Accounting Education in light of AI, challenges and issues in public sector accounting with crypto-asset operations, among others. 

At the Forum, Cristian Portillo, Technology Expert at Sofis Solutions, presented the “Regional Study on the Implementation of Digital Technologies and Innovative Solutions in Public Financial Management in FOCAL Member Countries”. This study identifies and assesses the maturity level of FOCAL member countries in implementing technology and innovative solutions for Public Financial Management (PFM). It also determined the needs of FOCAL members regarding the implementation of innovative technologies applied to PFM. 

The study is based on a Maturity Model composed of five dimensions that integrate operational components of Public Financial Management (PFM) and the Integrated Financial Administration System (SIAF): 

• Dimension 1: PFM and SIAF Regulatory Framework
• Dimension 2: Digitalization Strategies
• Dimension 3: Technological Innovation
• Dimension 4: Interoperability
• Dimension 5: Data Architecture

For the study, questionnaires were designed as data collection instruments, presented through online self-assessment surveys. The survey was structured with multiple-choice questions, whose answers were weighted according to maturity levels, based on the following scale: 

Survey responses served as a reference to address topics of greatest interest during interviews with the PFM and SIAF process leaders of each FOCAL member country, to determine the maturity level for each study component and dimension. 

The interviews helped verify that the survey was answered with a proper understanding of the questions and clarify the responses received, as well as identify factors to better understand each country’s situation. 

Key findings by major components include: 

Interoperability: 

• In 81% of countries, their SIAFs interoperate with internal subsystems. 
• In 38% of countries, their SIAFs interoperate with systems external to the governing body.

Technological Update: 

• In 31% of countries, the development technologies of SIAF and its architecture limit the incorporation of innovative solutions. 
• Two countries are using cloud infrastructure (public international and government private).

Data Architecture: 

• In 12.5% of countries, a standard has been adopted as data architecture for their SIAF.
• In 18.75% of countries, they have a data architecture adapted from a recognized standard.

Continuous Improvement Plans:

• 56% of countries present maturity levels between “Consolidated” and “Optimized” with continuous improvement plans for strengthening and updating their SIAF.

Innovative Technologies:

• Three countries have begun applying Artificial Intelligence within their SIAF frameworks.
• Two countries apply Blockchain linked to their SIAF.
• Two countries use Serverless Computing in the development of their SIAF.

Shared Experiences:

• Strategies for technological transition
• Document dematerialization (technologies and regulations)
• Electronic invoicing
• Artificial Intelligence
• Interoperability (official platforms)

According to Sofis Solutions, this consultancy contributed to analyzing the region’s countries in terms of technology and innovative solution implementation to collaboratively determine improvement opportunities. 

The study was funded by the Inter-American Development Bank (IDB), FOCAL’s main strategic partner in technical and financial assistance.