XBRL in Municipalities

Alejandro Amelivia Head of e-government area New perspectives on financial data reporting across different levels of government Ministry of Economy and Finance. Spain.

THE DIRECTORATE GENERAL OF FINANCIAL COORDINATION WITH LOCAL AGENCIES (DGFCLA) THE DGFCLA is responsible for the financial relationships between central and local goverments. Functions: Applying and managing the local financing system Technical assistance and management of inquiries regarding budgetary and financial system of local agencies Preparing and publishing statistics on financial and budget activity of Local Agencies

FINANCIAL LOCAL INFORMATION The ministry of economy and finance (meh) has competences for requesting local governments to report financial information The local budget settlement data are used in the decision making process about local financing and in budgetary statistics design Local Governments have to report a copy of their annual budget settlement (year t ) to the central Administration before march 31 (year t +1).

LOCAL BUDGET SETTLEMENT DATA REPORTS Potential units reporting their data: 8.110 local governments 1.615 organisms dependent on the administrative structure of local governments 51 provincial governments 160 organisms dependent on the administrative structure of the provincial governments >9000 other local entities and its dependent units Total: 18314 supervised entities

MUNICIPALITIES. DISTRIBUTION IN TERMS OF POPULATION

BUDGET REPORTING PROCEDURE Traditionally, the local governments have reported their printed financial information This fact caused a great delay in final data publication On the other hand, the risk of errors in data was too high Since 2006, the virtual office of financial coordination with local agencies offers some new web applications to capture local financial data

VIRTUAL OFFICE OF FINANCIAL COORDINATION WITH LOCAL AGENCIES

VIRTUAL OFFICE: IMPROVING PROCESSES The virtual office was intended to be an open communication channel between MEH and local entities From the virtual office, authorized local users can easily access online applications in order to immediately submit their data, reducing time to gather and publish the information The communication is “full duplex”

VIRTUAL OFFICE: LOCAL BUDGET SETTLEMENT DATA CAPTURE WEB APPLICATION

PROCEDURE FOR DATA CAPTURE Current possibilities when submitting information: Data Entry (typing) in web forms Data import from Excel spreadsheets Submission of XBRL instances

A LEGAL DISPOSITION TO MODERNIZE DATA CAPTURE Establishes general conditions and procedure for submitting Local Governments budget settlemens Order EHA/468/2007, February 22 Data signing exempts the local financial manager from sending a printed, hand-signed copy of the budget First legal text in Spain to mention XBRL. This law regulates data transmission in three possible ways: Typing, Spreadsheet importing and XBRL transmitting.

LOCAL FINANCIAL DATA. FORMAT CONFLICTS Local agencies are free to use any application or database to manage and store their budgetary data
A standard interchange format was required. It should
be easy to use by all the local agencies
be able to store or display any kind of budgetary data
be flexible enough to fit any existing storing system
So it had to be !

TRADITIONAL PROCEDURE: MORE WEAK POINTS The information is demanded by other institutions, such as external financial control courts (regional and national), regional governments, banks… And it was difficult to share. This fact means that local corporations have to send the same information using different formats in order to accomplish all legal requirements And consequently, increasing their management costs

THESE DISADVANTAGES CAN BE ELIMINATED The DGFCLA has considered XBRL as the best solution for an efficient financial data interchange, where so many organizations are involved
When using XBRL all the actors take some advantage
Public administrations
Audit and external control institutions
Universities
Banks
Analysts

MODEL BASED ON XBRL. EFFICIENCY GAINS
The use of XBRL in local budget reporting provides:
Better information transparency
Less time to publish data
More quality on information
Costs reductions
Better G2G relationships among all the actors
Better G2A relationships

LENLOC: DEPLOYMENT ESTRATEGY Developed by XBRL Spain and DGFCLA
Difficulties
Small L.A. have no resources
Different “Source” accounting applications
DGFCLA focused on Accounting Applications firms
5 firms  90% Local Agencies
Opportunity to increase business
XBRL is recomended by Law

LENLOC TAXONOMY

LENLOC TAXONOMY LENLOC STRUCTURE (I) Accounts lenloc-cta-2007-01-31.xsd Functions lenloc-fun-2007-01-31.xsd Common Elements lenloc-com-2007-01-31.xsd Ordinary Model lenloc-com-2007-01-31.xsd Simplified Model lenloc-com-2007-01-31.xsd Budget Settlement lenloc-liq-2007-01-31.xsd Functions lenloc-fun-2007-01-31.xsd Accounts lenloc-cta-2007-01-31.xsd

LENLOC TAXONOMY LENLOC STRUCTURE (II)
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/2007-01-31
Authority: Ministerio de Economía y Hacienda (meh)
Country: España
Report: Financiero (fr)
Account: GAAP
Legal References:
Orden Ministerial: 8 de Septiembre de 1999
Orden EHA 466/2007
Version Date: 2007-01-31
Prefix:
Budget Settlement Schema: lenloc-liq
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-liq/2007-01-31
Ordinary model Budget Settlement Schema: : lenloc-ord
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-ord/2007-01-31
Simplify model Budget Settlement Schema: : lenloc-sim
Namespace: http:// www.meh.es /es/ fr / gaap /8-9-1999/ lenloc - sim /2007-01-31
Common Elements in Simplify and Ordinary Budget Settlement Schema: : lenloc-com
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-com/2007-01-31
Accounting Schema: lenloc-cta
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-cta/2007-01-31
Functions Schema: lenloc-fun
Namespace: http://www.meh.es/es/fr/gaap/8-9-1999/lenloc-fun/2007-01-31

LENLOC TAXONOMY LENLOC STRUCTURE (III)
Files:
lenloc-liq-2007-01-31.xsd
lenloc-ord-2007-01-31.xsd
lenloc-ord-2007-01-31-presentation.xml
lenloc-ord-2007-01-31-definition.xml
lenloc-ord-2007-01-31-label.xml
lenloc-ord-2007-01-31-reference.xml
lenloc-ord-2007-01-31-calculation.xml
lenloc-sim-2007-01-31.xsd
lenloc-sim-2007-01-31-presentation.xml
lenloc-sim-2007-01-31-definition.xml
lenloc-sim-2007-01-31-label.xml
lenloc-sim-2007-01-31-reference.xml
lenloc-sim-2007-01-31-calculation.xml
lenloc-com-2007-01-31.xsd
lenloc-com-2007-01-31-label.xml
lenloc-com-2007-01-31-reference.xml
lenloc-cta-2007-01-31.xsd
lenloc-cta-2007-01-31-presentation.xml
lenloc-cta-2007-01-31-definition.xml
lenloc-cta-2007-01-31-label.xml
lenloc-cta-2007-01-31-reference.xml
lenloc-fun-2007-01-31.xsd
lenloc-fun-2007-01-31-presentation.xml
lenloc-fun-2007-01-31-definition.xml
lenloc-fun-2007-01-31-label.xml
lenloc-fun-2007-01-31-reference.xml

LENLOC TAXONOMY LENLOC STRUCTURE(IV) LENLOC imports the DGI taxonomy in order to identify local entities and their dependent organizations Two hypercubes or n-cubes of concepts regarding expenses, incomes and functions: accounts (lenlo-cta) and functions (lenloc-fun) Two principal schemas: ordinary and simplified (lenloc-ord and lenloc-sim) depending on municipal population A schema which collects the rest of the common concepts ( lenloc-com)

LENLOC TAXONOMY EXAMPLE OF AN XBRL INSTANCE: INCOMES AND EXPENSES

NEW CAPTURE WEB APPLICATION USING XBRL LENLOC WEB Application. Video.

DERIVED BENEFITS OF USING XBRL BY THE LOCAL ENTITIES Advantages of using LENLOC for transmitting data Transmission from the local budget settlement is fast, easy, secure, and guarantees data consistency. Improves the process transparency, as well as the analysis and control of budgetary data from local corporations It allows users to consult detailed and validated information from its original source Administrative costs reduction

LENLOC Results: Overall

LENLOC RESULTS: Evolution ox XBRL senders and signatures

FUTURE EVOLUTION (I): LENLOC 2010 New budget structure published Released: LENLOC 2010 Taxonomy First instance to be received: March 2011 Cooperative work with Local Accountance app developers

FUTURE EVOLUTION (II): PENLOC 2010 Initial budget transmission Demanded by Local Agencies First instance to be received: January 2010 Released: Penloc 2010

FUTURE EVOLUTION (III): Convergence of taxonomies The public sector taxonomy subgroup, conducted by the igae, was created in the XBRL Spain association … … aiming to disign a taxonomy for reporting the local governments general account to the external financial control courts (regional and national) Now, the DGFCLA and IGAE have proposed the convergence of lenloc and public sector taxonomies into a new one

Thanks for your attention [email_address] [email_address]

XBRL in Municipalities

by AlejandroAmelivia on Dec 09, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

Statistics

XBRL in Municipalities — Presentation Transcript