FreeBalance Government Resource Planning | Budget Preparation

By: Freebalance  09-12-2011
Keywords: Accounting, Product Development , financial reporting

GRP is software designed for the unique requirements of public financial management. GRP software is budget-driven through the use of Commitment Accounting, where the budget is the legal embodiment of government objectives. Commitment Accounting is used only in government and other forms of public financial management.


Budget Preparation and Budget Execution

GRP covers the entire government budget cycle, including Budget Preparation and Budget Execution. Budget Preparation is the key mechanism for governments to determine how objectives will be met and how to improve government performance. Government revenue and expenditures are managed during Budget Execution using Commitment Accounting. Funds are set aside during procurement and hiring cycles to ensure that the budget is not exceeded. Changes in the government financial situation result in budget transfers to ensure fiscal discipline.

Governments carry complex mandates. Improving results requires mechanisms in GRP software for planning and analysis throughout the Budget Cycle with an emphasis on improving government services.

Government Performance Management, Government Services
and Accountability

Governments don’t have shareholders. They report to citizens, and citizens demand transparent and open government. Citizen reports focus on planned budgets versus actual expenditures. Governments use governance mechanisms to describe how objectives will be met, and then assess whether objectives were or were not met. Many governments follow international public sector accounting standards for these reports. Releasing this information to citizens makes governments more accountable.

The FreeBalance GRP Solution

    Today, the FreeBalance GRP solution is implemented globally within governments across the world. Customers include the governments of Afghanistan, Antigua and Barbuda, Canada, Guyana, Iraq, Jamaica, Kosovo, Kyrgyzstan, Mongolia, Namibia, Pakistan, Palestine, Sierra Leone, Southern Sudan, Timor-Leste, Uganda, and the USA.

    FreeBalance software is used by more than 60,000 public finance managers to manage hundreds of billions of dollars of government expenditures and more than 1.5 million civil servants across 18 time zones.

    The software can be easily localized and configured for international deployment. FreeBalance supports multiple countries with different localization and modernization needs.

    • Approach
      Customer-centric solutions configured to unique country context and requirements. Software available in client-server and web-based configurations.
    • Fast Global Implementations
      Rapid deployment of country-specific functionality, including software localization, translation and configuration with support for multiple languages and multiple currencies.
    • Methodology
      The ISO 9001:2000 certified FreeBalance i3+qM methodology adapts good practices in product development and implementation services to the unique requirements of each country and government level.
    • Progressive Activation
      Solutions can be scaled down for fast initial implementation and then gradually scaled up. Progressive activation ensures government self-reliance, software sustainability, and lower Total Cost of Ownership (TCO).

    Supported Standards

    The FreeBalance Accountability Suite supports good fiscal practice and internationally recognized standards such as:

    • United Nations Common Functions of Government (COFOG)
      Functional classification to report government statistics to the International Monetary Fund (IMF) and the United Nations
    • The IMF Government Finance Statistics (GFS)
      Provides a comprehensive conceptual and accounting framework suitable for analyzing and evaluating fiscal policy and performance of the general government sector and broader public sector of any country
    • The IMF Code of Good Practices on Fiscal Transparency
      Method to assess government fiscal transparency with practical advice
      for improvement
    • Generally Accepted Accounting Principles (GAAP)
      A collection of rules, procedures and conventions that define accepted accounting practices. This includes broad guidelines and detailed procedures applied to both the public and private sectors
    • International Financial Reporting Standards (IFRS)
      International Accounting Standards Board, International private and public sector reporting standards
    • International Public Sector Accounting Standards (IPSAS)
      Cash and accrual reporting requirements for government and public sector organizations. Compliance with the IPSAS standards guarantees that the financial reporting of public bodies conveys what is termed a true and fair view of the financial situation. IPSAS take account of the characteristic features of the
      public sector.
    • Millennium Challenge Corporation (MCC)
      Governance outcome measurements supported in performance objectives
    • Medium Term Expenditure Frameworks (MTEF)
      Multiple year rational planning and budget formulation processes enabling the government to establish credible and transparent criteria for allocating public resources to strategic priorities while ensuring overall fiscal discipline
    • The World Bank Treasury Reference Model
      A development tool for fiscal managers and system developers, intended to help implement good practices in fiscal accounting and expenditure control

Keywords: Accounting, Accounting Standards, Civil Servants, Finance Managers, financial reporting, Financial Reporting Standards, International Accounting, International Financial Reporting Standards, International Public Sector, Product Development , Public Finance, Public Sector Accounting,

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