The EY Public Financial Management (PFM) framework focuses on the “new finance agenda” facing government finance leadership and is centered on three key questions:
How effectively are funds allocated across programs? The US government has a finite amount of capital and has to decide how best to allocate it across different programs. Spending should be allocated to areas that are best aligned to an agency’s overall mission and that earn the maximum possible return for citizens.
Are funds rigorously and visibly accounted for? Federal agencies need better visibility and understanding of their costs if they are to control them. It is not enough to record costs; there needs to be better understanding of what drives these costs in order to identify areas of improvement.
Are finance activities supported by an effective and efficient operating model? To keep pace with new demands, federal agencies must invest in their finance organizations, processes, technology and measurement systems. New finance operating models — including shared services and alternative delivery models — must be flexible enough to deal with constant change.
Learn more at ey.com/govpublicsector.
Insights and resources:
How data, technology and process enhance government performance - insights from public sector leaders on transforming government. Read the report here.