1. © Grant Thornton LLP. All rights reserved. Global Financial Management Leaders: Responses to an Economically Challenging World Jason Levergood Grant Thornton LLP International Consortium on Governmental Financial Management Annual Conference, Miami, FL May 17, 2011 – Key Biscayne Marriot Hotel

2. © Grant Thornton LLP. All rights reserved. Agenda About the 2011 survey Impact of the crisis Investment in infrastructure Increasing transparency 2012 ICGFM survey 2

3. © Grant Thornton LLP. All rights reserved. About the ICGFM survey Sponsored by ICGFM, conducted by Grant Thornton Survey methodology Anonymity Purpose: Examine impact and responses to economic upheaval and gain ideas for improving financial management 3

4. © Grant Thornton LLP. All rights reserved. Impact of the global financial crisis Impact Stimulus programs 4

5. © Grant Thornton LLP. All rights reserved. Impact of the global financial crisis 5

6. © Grant Thornton LLP. All rights reserved. Impact of the global financial crisis – Stimulus programs 6

7. © Grant Thornton LLP. All rights reserved. Impact of the global financial crisis – Stimulus programs 7

8. © Grant Thornton LLP. All rights reserved. Impact of the global financial crisis – Stimulus programs 8

9. © Grant Thornton LLP. All rights reserved. Investment in infrastructure Attracting outside investment Public private partnerships 9

10. © Grant Thornton LLP. All rights reserved. Investment in infrastructure – Attracting outside investment 10

11. © Grant Thornton LLP. All rights reserved. Investment in infrastructure – Attracting outside investment 11

12. © Grant Thornton LLP. All rights reserved. Investment in infrastructure – Public private partnerships 12

13. © Grant Thornton LLP. All rights reserved. Investment in infrastructure – Public private partnerships 13

14. © Grant Thornton LLP. All rights reserved. Investment in infrastructure – Public private partnerships 14

15. © Grant Thornton LLP. All rights reserved. Increasing transparency XBRL and financial management 15

16. © Grant Thornton LLP. All rights reserved. Increasing transparency 16

17. © Grant Thornton LLP. All rights reserved. Increasing transparency 17

18. © Grant Thornton LLP. All rights reserved. Increasing transparency 18

19. © Grant Thornton LLP. All rights reserved. Increasing transparency – XBRL and financial management 19

20. © Grant Thornton LLP. All rights reserved. Increasing transparency – XBRL and financial management 20

21. © Grant Thornton LLP. All rights reserved. Conclusions All countries have been affected by the global financial crisis –Economic growth, currency values and export revenue More than 60% of our respondents adopted stimulus programs –Over half believed stimulus programs to be positive Benchmarks for phasing out economic recovery programs included improvement in economic growth, general employment and limit to debt capacity Increase in spending on infrastructure was given as the number one area of focus for increased investment –Education / Transportation / Healthcare Combating the impact of the crisis resulted in an adoption of extraordinary polices More than 75% of all respondents spoke of a new commitment to increased transparency –Adoption of new standards included IAS and IPSAS 21

22. © Grant Thornton LLP. All rights reserved. 2012 Global Financial Management Leaders Survey Tools of PFM Accountability –Importance and barriers –Standards –Social media –Accountability in action media; parliament; public auditors Survey conducted all week –Thank you in advance for participation!

23. © Grant Thornton LLP. All rights reserved. Thank you 23

24. © Grant Thornton LLP. All rights reserved. Contact Jason Levergood Grant Thornton LLP Global Public Sector 333 John Carlyle Street, Suite 500 Alexandria, VA 22314 P 703.637.3006 E Jason.Levergood@gt.com 24

25. © Grant Thornton LLP. All rights reserved. Has the global financial crisis had an impact on your country? 1.Yes 2.No 3.Do not know/does not apply

26. © Grant Thornton LLP. All rights reserved. Has your country initiated a stimulus program? 1.Yes 2.No 3.Do not know/does not apply

27. © Grant Thornton LLP. All rights reserved. Rate the success of your country's stimulus program. 1.Very successful 2.Successful 3.No effect 4.Not successful

28. © Grant Thornton LLP. All rights reserved. What are the key indicators that will activate the need to unwind or end your country's stimulus program? 1.GDP Growth 2.Lower unemployment 3.Improved debt capacity 4.Inflation 5.Interest rates 6.Political climate

29. © Grant Thornton LLP. All rights reserved. Which areas of Infrastructure present the most critical need for investment? 1.Education 2.Transportation 3.Healthcare 4.Energy/Renewables 5.Information Technology 6.Housing 7.Water 8.Waste treatment 9.Defense 10.Prisons

30. © Grant Thornton LLP. All rights reserved. What are your areas of focus to increase outside investment? 1.Improve necessary infrastructure 2.Improve legal system 3.Greater transparency 4.Tax incentives 5.Currency Reforms

31. © Grant Thornton LLP. All rights reserved. Has your country used public private partnerships (PPPs) to find sustainable funding for infrastructure investments? 1.Yes 2.No 3.Do not know/does not apply

32. © Grant Thornton LLP. All rights reserved. Please rate the success of your country's PPPs. 1.Successful 2.No effect 3.Not very successful

33. © Grant Thornton LLP. All rights reserved. Why has your country not used PPPs? 1.Lack of policy and guidance 2.Lack of PPP unit to coordinate efforts on the ground 3.Political circumstances 4.Lack of interest from investors or operators

34. © Grant Thornton LLP. All rights reserved. Has your country made or renewed a strong commitment to improve public financial management transparency for your citizens? 1.Yes 2.No 3.Do not know/does not apply

35. © Grant Thornton LLP. All rights reserved. Has your country adopted new international standards to improve public financial management governance and transparency? 1.Yes 2.No 3.Do not know/does not apply

36. © Grant Thornton LLP. All rights reserved. Which new international standards has your country adopted? 1.International Auditing Standards 2.International Public Sector Accounting Standards 3.Government Financial Standards/Compliant Chart of Accounts

37. © Grant Thornton LLP. All rights reserved. Has your country adopted eXtensible Business Reporting Language (XBRL) to enhance transparency and public access to data? 1.Yes 2.No 3.Do not know/does not apply

38. © Grant Thornton LLP. All rights reserved. Are there plans to adopt XBRL in the future? 1.Yes 2.No 3.Do not know/does not apply