1: Cash to Accrual Conversion

Context

Governments have become less dependent on liquidity for determining and implementing fiscal policy. There is instead a growing trend around the world to adopt the accrual basis of accounting to evaluate financial policy. The implementation of a program to convert from a cash to an accrual accounting basis (in line with international public sector accounting standards) was a vital transformation initiative for the development of public financial management. The application was designed to achieve the following objectives:

• Provide complete, accurate, and timely information about the current financial position (along with the results of activities and cash flows)
• Produce an accurate disclosure of current financial obligations.
• Develop governance to preserve public funds and Assets.
• Provide a clear view of the future financial state to support decision-making.

Approach:

The project was conducted in the following stages:

• Study and analyze the current situation regarding financial operations and identify process and capability gaps.
• Develop an operating manual, policies, procedures, and accrualbased accounting models.
• Design an accrual-based chart of accounts.
• Prepare the opening balances of the accounts.
• Conduct a fixed assets inventory and prepare the fixed assets register as a baseline for the opening balances of the financial statements.
• Provide operational support and knowledge transfer to the Accounts Department

The outcome:

• Increased control over revenues, expenses, assets, and liabilities.
• Improved quality of financial information through increased transparency and enhancing the principle of accountability.
• More accurate financial information for operations.

  2: Developing Operating Model For Financial Operations

Context

In order to maximize the return on the use of available financial resources and to enhance the efficiency of spending, organizations require a strong financial operating model that can help define the strategic direction for financial operations. This initiative aimed to achieve the following objectives:

• Align the strategic direction and objectives of the administrative and financial operations with the overall business goals.
• Enhance governance by setting out clear authorities and responsibilities, and unifying policies and procedures.
• Achieve excellence in service provision through upskilling, improved governance, tighter stakeholder coordination, and the development of performance indicators.
• Ensure the integrity, accuracy, and timeliness of information to enhance the decision-making process.
• Assure financial and supply chain sustainability.
• Secure business continuity

Approach:

The project was conducted in the following stages:

• Study and analyze the structural components of the finance operation.
• Define the strategic direction and objectives for the finance operation in line with the organization strategy.
• Prepare design principles for the target operating model.
• Develop the target operating model, including the organizational structure, services, work procedures, stakeholders’ interactions model, and performance indicators.
• Design improvement initiatives to ensure the effective implementation of the target operating model.
• Provide operational support and knowledge transfer.

The outcome:

• Increased efficiency of operations.
• Improved monitoring and performance measurement.
• Increased customer satisfaction.
• Assured compliance with relevant regulations and legislation.

3: Administrative and Financial Reporting Framework

Context

The importance of building a framework for administrative and financial reporting lies in the fact that it helps decision makers determine the organization’s future direction in line with its strategic vision. Considering the significance of the time and effort required for the financial reporting process, a framework needed to be developed that clarified the responsibilities and authorities for preparing, reviewing, and processing data from all its sources; identified tools and techniques for performing the analysis and comparisons; defined performance indicators; developed models and presentations; determined the periodicity of reports and the governance of the quality-check process; and identified the target internal and external entities. This initiative aimed to achieve the following objectives:

• Develop a financial and administrative reporting framework according to best practice.
• Increase capacity and capability in data processing operations pertaining to the preparation of administrative and financial reports.

Approach:

The project was conducted in the following stages:

• Study and analyze the level of maturity surrounding the governance of the reporting process, the data and its sources.
• Develop a general framework for financial reporting.
• Prepare reporting templates and dashboards.
• Define how business intelligence tools can contribute to and integrate with data sources to facilitate and enhance the financial reporting .
• Provide operational support and knowledge transfer to ensure capacity building in the data processing and reporting process.
• Provide operational support and knowledge transfer.

The outcome:

• Increased accuracy and enhanced the integrity of the financial reporting process.
• Improved data governance while raising the readiness and integrity of all sources.