CIAT General Assembly 2009 Enrico Martino Head of International Relations Department of Finance Ministry of Economy and Finance Italy Santo Domingo, Dominican Republic 20 – 23 April 2009 A modern vision of the Tax Administration Subtopic 3.3 – The technological tools in financial and budgetary management for timely and effective accountability

 Financial management of the Public Administrations and accountability  Financial and accounting management of the Tax Agencies sources sources technological tools technological tools  Publicity, transparency and accountability Publication of plans and reports Publication of plans and reports Customer satisfaction Customer satisfaction New accountability tools New accountability tools  Conclusions Outline

Financial management of the Public Administrations and accountability  Autonomy and optimization in managing public resources  Destination to the mission of the Public Administration  Transparency for, and information to, the private citizen on: Targets and allocated resources Results achieved vs. costs sustained

Financial and accounting management of the Tax Agencies in Italy – (I) Financial and accounting management of the Tax Agencies in Italy – sources (I) Legislative decree no. 300/99 reforming Government organization The Tax Agencies: are bodies governed by public law perform public functions have managerial autonomy Aims of the new administration pattern : rationalization of public resources efficient and effective supply of services

Financial and accounting management of the Tax Agencies in Italy – (II) Financial and accounting management of the Tax Agencies in Italy – sources (II) Legislative decree no. 300/99 reforming Government organization The Agencies follow the rules of corporate accounting linking it to public sector accounting (art. 70 para. 5) They are autonomous in their management and responsibilities when implementing the targets agreed with the Minister (articles 59, 61)

Financial and accounting management of the Tax Agencies in Italy tools (I) Financial and accounting management of the Tax Agencies in Italy - tools (I) The new organizational structure provides for: the collection and processing of the information needed in the decision-making process on management an allocation of the resources made visible to private citizens

Financial and accounting management of the Tax Agencies in Italy tools (II) Financial and accounting management of the Tax Agencies in Italy - tools (II) General Ledger (GL) General Ledger (GL) Funds control Invoices to be received Invoices control Assets purchase Depreciations acquisitions, revaluations, sales Invoices Collections Balance sheet Accounting books ORACLE ERP E-Business suite release 11.i Purchasing Orders (PO) Purchasing Orders (PO) Fix Asset Accounting (FA) Fix Asset Accounting (FA) Accounts Payables (AP) Accounts Payables (AP) Invoices Payments Accounts Receivables (AR) Accounting Report

Financial and accounting management of the Tax Agencies – tools (III) Accounting systems Management control module Human Resources (HR) Human Resources (HR) Economic and production budget Analytic accounting Analytic accounting reporting Industrial accounting Chemical Laboratories Industrial accounting Chemical Laboratories Production Monitoring Production Monitoring

Publicity, transparency and accountability (I) Innovative technological tools for financial management also provide citizens visibility into: the targets and resources allocated to the tax administration the results achieved and resources used The Italian Tax Administration adopted a set of initiatives to ensure: transparency and information on the management of its activities survey of taxpayers’ expectations

Publicity, transparency and accountability (II) Publication of plans and reports Conventions with Tax Agencies (targets and resources allocated) Reports (results achieved resources used)

Publicity, trasparency and accountability (III) Publication of Balance Sheets The Revenue and State Property Agencies publish their balance sheets and other management documents on their websites

Publicity, transparency and accountability (IV) Customer satisfaction For accountability purposes the tax administration carried out customer satisfaction surveys. The attention paid to the opinion of its own “clients” is a way of communication to: learn how taxpayers perceive the quality of the services provided intensify the relationship between citizens and tax administration improve working processes and organization

Publicity, transparency and accountability (V) Publicity, transparency and accountability (V) New accountability tools Traditional accounting documents could be difficult to read for public and private stakeholders Public Administration are developing new communication toolsto privede clear information on: the choices made by the administration services provided resources used. Also the Tax administration is taking measures to develop its own “Social balance”.

Conclusions Financial management tools are necessary to: ensure efficiency of the administrative action achieve the results expected by the taxpayer in exchange for the taxes paid inform taxpayers on the internal management and the targeted objectives The publicity given to activities and results by the Tax administration: makes citizens aware of the improvements made in the resource optimization shows the Tax administration’s increased commitment towards citizens Nápoles los días 19 al 22 de octubre