Data Transparency – A New Way of Life Ann Ebberts, CEO, AGA October 2016 www.agacgfm.org

AGENDA Transparency Driven by Legislation Transparency of our States Improving Public Understanding of Government Providing Insight Through ERM Benefits of CGFM

Spending Transparency Federal Financial Accountability and Transparency Act – established USASpending.gov in 2006 Required full disclosure of all entities or organizations receiving federal funds on a website Digital Accountability and Transparency Act (DATA Act) passed in 2014 “…viewed as the most transformative legislation since the CFO Act of 1990”

Source: OMB Presentation at FSS 2016 DATA ACT OVERVIEW Public Law 113-101 Digital Accountability and Transparency Act of 2014 (DATA Act) – purpose is to with the purpose to establish government-wide financial data standards and increase the availability, accuracy, and usefulness of federal spending information. Links federal contract, loan and grant spending info to federal programs. Establish Government-Wide Data Standards Simplify Reporting Improve Quality of Data Source: OMB Presentation at FSS 2016

MAY 2017 DATA ACT TIMELINE AND IMPLICATIONS No new data required www.agacgfm.org/datahub No new data required Enable commercial data products Data reported differently Automated grant reporting Opportunity to reduce reporting burden Enhance government spending transparency No additional funding Government-wide data standards identified/defined MAY 2015 Pilots MAY 2015 — MAY 2017 All agencies report under the standards MAY 2017 Guidance on applicability to recipients NOVEMBER 2018

dAta act oBjectives Increase spending transparency for the public Improve the quality and completeness of the spending data Use the data to improve internal management of the federal government Allow state and local governments to target resources for maximum impact Reduce burden for recipient reporting

USASPENDING.gov – a “WORK IN PROCESS”

Federal spending in Missouri (FY16)

Federal spending in Missouri (dist 07) Double clicking on AZ gives you this type of view. You can even drill down to your zip code and find out what organizations are getting funding

Openbeta.usaspending.gov …. and YOUR input can make a difference.

Transparency into federal spending is great…. but WHAT ABOUT THE STATES???

States seek same benefits from data

U.S. PUBLIC INTEREST RESEARCH GROUP (u.s. Pirg) “rates the states” U.S. PIRG Education Fund published “Following the Money 2016” providing state data transparency Seventh year of the review - using A-F grades U.S. PIRG states that websites should be: Comprehensive – multi source data One-Stop – on one website One-Click - searchable Source: www.uspirg.org/sites/pirg/files/reports/Following the Money 2016...

U.S. Pirg – grading of the states Source: www.uspirg.org/sites/pirg/files/reports/Following the Money 2016...

What state is at the top? Bottom? Vendors seeking to do business with the state of Ohio have reported using OhioCheckbook.com as a business analytics tool, which has allowed them to determine when they can offer a state agency a product at a better value than the agency was currently receiving. In addition, an elected official from Hamilton County said that he used the site to compare the prices paid for road salt in neighboring villages to ensure that the county was getting a competitive rate.1 Mississippi spent 2.2M and has a C+ Source: www.uspirg.org/sites/pirg/files/reports/Following the Money 2016...

States – Rapid move to transparency Source: www.uspirg.org/sites/pirg/files/reports/Following the Money 2016...

Missouri rates an C+ …with a 77 Missouri – a “middling” state: Website cost $292,140 to create, <$5K/year maintenance Comprehensive and easy to use Wide range of spending Allows users to download data ALL States: Members of both parties support government transparency States with larger revenue streams tend to have more transparency Massachusetts sees fewer public information requests Florida – using data analytics – has allowed the state to rebid/renegotiate contracts due to enhanced visibility of data – saving them $40M in 2013 – 2014 Washington state had “big” savings due to posting their budget on line – no longer publish expensive budget documents Source: www.uspirg.org/sites/pirg/files/reports/Following the Money 2016...

How will YOU use the data???? Who will use the data? Federal executives and program managers Federal CFOs State and local policy-makers and managers Private entrepreneurs Academics/ researchers General public Oversight entities How will YOU use the data????

Daily use of Publicly available data Weather Home Search Crime rate GPS Other…?

Improving public understanding of government Citizen-Centric Reporting (CCR)

CITIZEN-CENTRIC REPORTING (CCR) Fostering innovative means of communication between governments and their citizenry | www.agacgfm.org/ccr “A government’s obligation to the people for its actions and use of resources” -AGA’s definition of accountability “Giving the citizens numbers they can understand.” -Governing . . . access to spending data is the first step. The CCR provides the next logical step to informing our citizens.

CITIZEN-CENTRIC REPORTING (CCR) www.agacgfm.org/ccr Objective: Foster an innovative means of communication between governments and their citizenry; providing a condensed view of government financial and program performance in clear, non technical language Short — 4 pages Understandable, easy to read Colorful — use pictures and graphics Multi-year presentation to demonstrate improvement and/or challenges in achieving goals

CCR: PAGE 1 Vision Statement Strategic goals Basic demographics Table of Contents

CCR: PAGE 2 Key service areas Progress toward strategic goals or deliverables Demonstrate accomplishments (2-4 years) for non- financial outcomes

CCR: PAGE 3 Revenue and cost data for major delivery areas Well-labeled charts, graphs and tables Reference audit conducted Provide URL for more- detailed financial information

CCR: PAGE 4 Include items with future impact, such as: Economic changes Tax cuts or increases Unemployment Education Environmental aspects Ask for feedback by including a contact name and contact information

Internal Control & Enterprise Risk Management (ERM) (What’s ERM got to do with Transparency???)

INTERNAL CONTROL – OMB A-123 UPDATE OLD: Management's Responsibility for Internal Control(Rev 12/2004) NEW: Management's Responsibility for Enterprise Risk Management and Internal Control (Revised 7/2016) Internal Control -- as defined in accounting and auditing: …..a process for assuring achievement of an organization's objectives in: operational effectiveness and efficiency, reliable financial reporting and compliance with laws regulations and policies A broad concept, internal control involves everything that controls risks to an organization

Internal Control Framework COSO Internal Control Framework Committee of Sponsoring Organizations

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Build in ERM to existing processes Source: COSO

Enterprise Risk Management (ERM) … . . .is a strategic business discipline that supports the achievement of an organization’s objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated risk portfolio.” Risk management is coordinated activity to direct and control challenges or threats to achieving an organization’s goals and objectives. End game = Achieving strategic mission objectives Source: Risk & Insurance Management Society (RIMS)

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What Does Success Look Like? A “Portfolio” approach to managing risks with of view of Integrated Risks/Interdependencies Higher level of value added: better, more-informed decisions greater management consensus increased management accountability Better understanding of business risks Strategic risks aligned with strategic goals and objectives Transparency in decision making, informed by risk

How Can CGFM Help You And Your Career? AGA’s Office of professional certification

What’s on your Performance Review? Get to be “known for something” Bring new ideas to the office Earn a credential Develop relationships – build your network Share your skills -- teach and/or mentor others Learn about what’s going on in the financial management community

What is CGFM? Certified Government Financial Manager® (CGFM) is a professional certification awarded by AGA – the member organization for financial professionals in government. CGFM is the only certification that: Specialized focus on government financial management Broad coverage of various aspects of financial management at all levels of government

Initial Requirements – the 4 “E’s” Ethics – read and agree to abide by AGA’s Code of Ethics Education – have a bachelor’s degree from an accredited college or university Examinations – pass three comprehensive CGFM examinations Experience – complete at least two years of professional- level experience in government financial management www.agacgfm.org/cgfm

Exam 1: Governmental Environment Demonstrate an understanding of: Organization, structure and authority of government Legally-based implications of the government financial environment Government management system Governmental financing process Concepts, definitions and notions of public accountability Ethics as applied to the government environment Electronic services in government www.agacgfm.org/cgfm/exams

Exam 2: Governmental Accounting, Financial Reporting and Budgeting Demonstrate general knowledge of Governmental financial accounting, reporting and budgeting Demonstrate an understanding of state and local financial accounting and reporting Demonstrate an understanding of Federal financial accounting and reporting www.agacgfm.org/cgfm/exams

Exam 3: Governmental Financial Management and Control Demonstrate an understanding of: Financial management functions Financial and managerial analysis techniques Internal control Performance measurement/metrics/Service Efforts and Accomplishments (SEA) Auditing www.agacgfm.org/cgfm/exams

Preparing for Examinations Start with exam content outlines www.agacgfm.org/cgfm/exams Preparation options: Courses – CGFM and Intensive Review – brought to your site Self-study: study guides practice exams study references “lunch and learns” www.agacgfm.org/cgfm/prepare

CGFM Benefits Increased knowledge of government financial management Greater confidence on the job Better understanding of “big picture” of government Portable and tangible indicator of experience and knowledge Enhanced marketability throughout all levels of government Encourages employer incentives and continuing education Enhanced credibility, public confidence and employee value

Enhance your Marketability CGFM: is the mark of professional excellence can help you differentiate yourself from others provides insight to legislation that drives change is transferrable across agencies and government levels Apply today at www.agacgfm.org/cgfm/apply

For More Information Kimberly Jones CGFM Program Manager kjones@agacgfm.org Katya Silver Director of Professional Certification ksilver@agacgfm.org

Resources/Online Library www.agacgfm.org – website under Resources tab: Annual Surveys – CFO, IG, CIO Numerous Research & Executive Reports – a few topics… Trends in Technology Mobile Transactions Shared Services Improper Payments Internal Control Performance Based Management Control Challenges over Federal Grants and Benefits Grants Management Single Audit Numerous events – key findings and highlights

Resources/Journal

CHECK US OUT AND CONNECT! @AGACGFM LINK WITH AGA 703-684-6931 EMAIL US! Check us out at WWW.AGACGFM.ORG aebberts@agacgfm.org

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