Transcript Aid Management Platform (AMP)
Integrating Aid Management with Government Financial Management
Gerhard Pohl Senior Director Development Gateway Foundation International Consortium for Government Financial Management Annual Conference Miami, May 25, 2007
Corporate financial management is simple: revenues and expenditures are for traded goods General Electric: Income Statement
(US $ million)
Total Revenue
- Cost of revenue
Gross Profit
- Sales, General, Administration - Net Interest Expense
2006 163,391
93,396
67,458
7,053 908
2005 147,956
81,916
64,357
7,215 986
2004 134,291
73,375
59,852
6,974 728
2003 113,420
61,665
51,154
6,821 308 - Other Operating Expenses
Operating Income
- Income Tax - Total - Extraordinary Items
Net Income ($ million)
37,414
24,620
3,954 163
20,829
35,143
22,696
4,035 -1,950
16,711
32,917
20,297
3,696 559
17,160
26,480
18,147
4,056 1,470
15,561 2002 132,226
63,007
68,206
20,692 326 29,229
18,972
3,790 -1,015
14,167 The bottom line, net income , is a powerful measure of performance, in $ (!)
1
Government financial management is much harder: public goods are usually not traded
• Revenues are not market-based (taxes!) • Goods and services are not “sold” • Only “costs of revenue” are market-based • Establishing the “value” of services is difficult • Government accounting has no “bottom line” • Performance cannot be expressed in $$$ • Performance evaluation is hard, ….
but very important !
2
Government financial management remains work in progress : Only basic issues have been resolved:
• • • • Accounting tracks only costs, not values It can detect outright fraud and management But does
not
provide
measures of performance
Governments have a myriad of
performance evaluation mechanisms:
– elections, separation of powers, parliamentary debates, watchdog agencies, publication requirements, reviews, “audits”, M&E requirements, “impact” evaluation, etc, etc...
3
Government financial management requires open systems that can talk to others
4
Aid is large for many countries All developing countries (150):
– 1% of gross national income (GNI) – 8% of government revenue
Poor and small countries (50):
– >10% of GNI – >50% of government revenue 5
1990s aid “fatigue” due to poor performance DAC members' net ODA 1990-2005 and DAC Secretariat simulations of net ODA to 2006 and 2010
0.40 0.35 0.30 0.25
ODA as a % of GNI (left scale) 0.33
0.20 0.15 0.10 0.05 0.00
0.22
0.26
0.33
Total ODA (right scale) Total ODA to Africa (right scale) 0.36
140 120 100 80 60 40 20 0 6 1
…replaced by the New Millennium “Aid Compact” Ownership Partner sets the agenda Alignment Alignment with partner’s agenda Reliance on partner’s systems Harmonization Common agreements Simplification of procedures Sharing of information
… with strong emphasis on better,
common systems
for:
financial management, procurement, and M&E
7
Aid has shifted from infrastructure to basic government services
“Old” aid: Dominica “New” aid: Rwanda 8
…these require new aid management tools …that are more than accounting systems
9
AMP Overview
• Web-based tool that allows a government to view, plan, and report on its entire development ‘portfolio’ for the country; • Integrates the most common development and management tools into one secure, team-based workspace; • Encourages broad use by multiple government Ministries, specialised agencies, donors and aid effectiveness experts.
AMP Key Features (Modules)
•
Aid Information
- Summary view of all development activities in the team’s portfolio •
Advanced Reporting
- Create periodic and customised reports on financial and physical progress •
Document Management
- Store frequently used project documents and web-sites directly in each activity file •
Planning Calendar
- View key events and missions in one common calendar accessible to government and donors •
Monitoring and Evaluation (M&E)
- Track project indicators against financial and physical goals and assess activity risk
AMP Background
AMP was developed in response to the 2003 Rome Declaration on Aid Effectiveness, with Ethiopia as the test country
Steering Committee:
OECD DAC (Chair) UNDP World Bank
AMP Competitive Advantage Open-Source
- AMP is provided under a royalty-free and source-available license to government partners
Capacity Building
- AMP is wholly transferred to the partner government, who can utilise and modify it as necessary
Universal Architecture
AMP can integrate with a country’s existing systems, databases and standards
Technical Assistance
- AMP is not just software, but technical assistance to a partner government’s
human
process
AMP Funding Bilateral lines of financing:
Pre-negotiated grants to provide financing for a number of AMP implementations in priority countries: Swiss Agency for Development and Cooperation (SDC) Belgian Development Agency European Commission Luxembourg Soon: UNDP African Development Bank (AfDB) Inter-American Development Bank (IADB)
AMP Implementation - Status implementations:
• Ethiopia • Bolivia
about to commence:
• Albania • Montenegro
coming:
Burundi, Congo, Ghana, Mali, Mauritania
Aid Management Platform (AMP)
Aid Information Module (AIM)
Advanced Reporting Module
Documents and Internet Resources
Aid Portfolio Calendar
Monitoring and Evaluation (M&E)
Coming Up - New Functionality Integration with National Budgeting System
• Bring together national budgets with aid management for more effective, efficient, and transparent aid management (i.e. FreeBalance, Oracle, SAP) • With the union of the two systems, AMP’s “managing for results” function the capacity to monitor and evaluate impact on multiple levels - will enable governments to track the impact of projects in the national budget
Integration with UNICEF DevInfo and GIS
• Link national statistical data with international data on development metrics (DevInfo) in a Geographical Information System, mapping progress visually across the country and from national to local levels • Provide Monitoring and Evaluation data to policy-makers for analysis against national planning, and Millennium Development Goals
dgMarket
The Online Solution for Government Procurement Information in Developing Countries Development Gateway Foundation April 2007
Aid Management Platform (AMP)