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

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

4. 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”

5. Source: OMB Presentation at FSS 2016
DATA ACT OVERVIEW
Public Law 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

6. MAY 2017 DATA ACT TIMELINE AND IMPLICATIONS No new data required
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

7. 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

8. USASPENDING.gov – a “WORK IN PROCESS”

9. Federal spending in Missouri (FY16)

11. 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

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

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

14. States seek same benefits from data

15. 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: the Money

16. U.S. Pirg – grading of the states
Source: the Money

17. 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: the Money

18. States – Rapid move to transparency
Source: the Money

19. 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: the Money

21. 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????

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

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

24. CITIZEN-CENTRIC REPORTING (CCR)
Fostering innovative means of communication between governments and their citizenry |
“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.

25. CITIZEN-CENTRIC REPORTING (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

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

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

28. 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

29. 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

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

31. 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

32. Internal Control Framework
COSO
Internal Control Framework
Committee of Sponsoring Organizations

34. Build in ERM to existing processes
Source: COSO

35. 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)

37. 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

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

39. 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

40. 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

41. 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

42. 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

43. 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

44. 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

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

46. 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

47. 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

48. For More Information
Kimberly Jones CGFM Program Manager Katya Silver Director of Professional Certification

50. Resources/Online Library
– 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

52. Resources/Journal

53. CHECK US OUT AND CONNECT!
@AGACGFM
LINK WITH AGA
US!
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54. In theaters now….
Ben Affleck, Anna Kendrick, John Lithgow